Edgefield advertiser. [volume] (Edgefield, S.C.) 1836-current, 1873-10-30

/, sources of income to meet this in
debtedness. In comparing the amour
, of moneys received from taxes wit
the moneys expended on account 0
appropriations for this same period
lit appears that the expenditures, ex
elusive of the payments for interest
exceeded the receipts from taxes, and
therefore, it is assumed that the in
terest was paid from the remaining
source of revenue, viz /: the proceed
from the sale of these bonds. Unde
the act of September Is, 1853, TO
funding the bills of the Bank of tn
State, the American Bank Note Com
pany printed $1,5Oo,O00. Of thi
sum $l,259,OO0 were issued; th'
others were cancelled unused. O.
the amount issued $69,400 were con
verted, and 81 ,189,600 are outstand
ing in their original form. The bond'
prepared under the act of February
II, 1859, for the relief of the treasu
ry, amounted to 81 100000, of which
$lOl 900 were never issued, and are
cancelled and filed in the treasury
$4,000 of the remainder have beer
exchanged for conversion bonds, and
1856, 900 are now outstanding in theil
original form. The stock originally
issued under the act Of March %,
1869. for the conversion of State secu-
rites, amounted 10 $775,70O; Of
which SILL, 700 have been converted
into conversion bonds. 5000 represent
stock transferred, and $4,000 are
outstanding in the original form.
THE ISSUE OF THE CONVERSION STOCK
is explained in this way: When ap-
plication was made to the treasurer
by a person holding a bond Of the
State to have the same exchanged for a
conversion bond, the treasurer took
up such bond and issued in lieu a
piece of conversion stock of equal
amount. which stock wasethen can
celled and exchanged fora conver-
sion bond. This roundabout process
was prescribed BY the act for the
conversion of State securities. Sev-
eral persona preferred to hold the
conversion stock, and, therefore, did
not carry the operation further,
which accounts for the outstanding
balance of $4,000 before referred to.
of course this amount does not rep
resent an increase of the public debt,
but merely represents in another form
some pre.existing obligation. The
entire amount of bonds issued under
the said act for the conversion of
State securities was S7,576,500. Of
this sum 81 Gil, 500 were issued mere
ly to change the form Of some pre-
existing outstanding Indebtedness in
the form of bonds and stocks previ-
ously authorized, and hence do not
represent an increase of the public
debt. The $4,000 of conversion
bonds converted and cancelled are
thus explained: A person holding
$1,000 Of bonds Of different classes
(say funding interest, &C., $500 of
the denomination of 500; funding
bill Bank of the State, $500 of the
denomination Of $50, and conversion
5000 of the denomination of Sl00)
would present them to the treasurer
and receive in exchange a piece of
conversion stock Of the denomination
of 81 900, and in exchange for said
stock conversion bond of equal
amounts. Thus $4,000 of conver-
sion bonds found their way back into
the treasury, and bonds of the same
class, but larger denomination, found
their way into the market without
increasing the volume Of debt.
repeat, therefore, that there are now
outstanding $l,577,50O of conversion
bonds issued in strict accordance with
law, which are merely the represen-
tatives of bonds and stocks Of vari-
GUS classes, and, in the aggregate, of
equal amount cancelled and filed in
the treasury. This statement is based
upon my personal examination Of said
cancelled bonds and stocks, and may
be relied on as accurate in every par
ticular. There are also outstanding
conversion bonds to the amount Of
$5,965,0Oo, which represent an actu-
al increase of the public debt.
Ithas been alleged that these bonds
were hypothecated for security of
loans by order of the financial board,
and the moneys received therefrom
used to cover the deficit Of revenue
from taxation, or to
"BRIDGE THE cHAsM"
between the receipts and appropria-
tions, and the State being unable to
redeem the bonds at the maturity Of
the loans, they were forfeited and
sold and thus by the amount repre-
sented upon their face, increased the
public debt. l will not venture to
assert that these allegations are en-
tirely at variance with the facts, be-
cause I have been unable TO get access
to the records of the financial board,
or to ascertain the exact time each
particular loan wa, negotiated, and
the amount thereof, as also the amount
Of. bonds forfeited for each loan the
State failed to discharge at maturity.
But this l assert with certainty, that
more than one-seventh of said anount
is accounted for in another way. It
appears that on the 7th of December,
1870, the then treasurer Of the State.
in a letter addressed to the financial
agent, "a copy of which is Of record
in the treasury, stated that the State
owed a debt Of $303, ,545 80, due in
1870, known as Fire Loan Stock, and
also a debt of $250,OOO, due in 1871,
known as State Capitol Bonds, which
debts the financial board had instruct
ed him, the treasurer, to discharge,
with authority to make whatever ar
ranpemenSs MIGHT he necesqarv there.