The Orangeburg news. [volume] (Orangeburg, S.C.) 1867-1875, 1873-10-21

oSSi ".pS IoHi august iouo, 10 July, 1869. q
period of eleven months, is ctargcable to tile
post-reconstruction period; or. in other
words, 1924 OF the entire debt Of 81, ,45e. 900 !:
amounting To $780, 66i. is chargenble to
the former period, ant 1921, amounting to
$6G4, ,5S3.331, is chargeable to the latter pe-
riod
1t may be proper TO state In connection
with this subject that tile Legislature. at its
session of ls6s-'G9, appropriated $500, 900
Tor ihe payment of the interest due for this
same period, so that there were really two
sources oil income to meet this indebtedness
In comparing The amount OF moneys received
from taxes, with tho moneys expended on ac-
count OF appropriations for this same period.
II appears that the expenditures, exclusive OF
tho payments for interest. exceeded the re.
ceipts from taxes. and therefore, IL il assumed
that the interest was paid from the remaining
source OF revenue, viz tile proceeds from tho
sale of these bonds
Under tho act oil September Is, 1868. for
funding the bills OF Tho Bank of the State. tho
American Bank Note Company printed 81 900
OOO. or tliis sum $l,2590O0 wore issued, the
others were cancelled unused. OF the amount
issued SOS, 400 wereconyerted and ST / S9, 600
are outstanding in their original form The
bonds prepared under the act Of February II.
1869, for tho relief of tho treasury, amounted
to 81 ,OOO,o 900, OF which $lGl 900 were never
issued, and arc cancelled and filed in the
treasury; $4,000 OF the remainder have been
exchanged for conversion bonds aud $3.50, 900
are now outstanding in their original form.
Tne stock originally issued under the act of
March %; 1868, for the conversion OF State
securities, amounted to $7T5, roo; of which
S7il,700 have been converted into conver-
sion bonds. $4,000 represent stock transferred
ana So, 900 are outstanding in the original
form.
The issue of the conversion stock Is ex-
planned in this way: when application was
made TO the treasurer by ii person holding a
pond OF tho State to have the same ex-
changed for conversion bond tho treasu-
rer took up such bond and issded i'm lieu
piece of conversion stock of equal amount.
which stock was thou cancelled and exchanged
for conversion bond. This roundabout pro-
cess was prescribed by the act for the conver-
sion OF State securities. Several persons pre-
ierred to hold the conversion stock. and. there
fore, did not carry the operation further.
which accounta for the outstanding baIance of
SOD, 600 before referred 10. or course this
amount does not represent an increase of the
public debt but merely represents in another
form some pre-existing obligation
ui'~ --.-'i~N e.f I~-,.Ls 3d.
the said act Tor tho conversion OF State secur-
tiles Was 81 ,576, 300. OF this sum Sl,GIl.-
500 were issued merely to change the form OF
some pre-exist'ng outstanding indebtedness
in the form OF bonds and stocks previously
authorized, and hence do not represent an
increase OF the public debt.
The 534, 900 OF conversion bonds converted
and cancelled are thus explained
person holding 8 900 of bonds OF differ
ont classes (say funding interest, etc, $500 of
the denomination OF $l00; funding hills Bank
OF the State, $500 OF the denomination of $50
and converaion, 5000 of the denomination of
Sl00) would present them to the treasurer
and receive in exchange a piece OF conver-
sion stock Of the denomination of 81 600.
and in exchange for said stock a conversion
bond of equal amount. Thus, $4,000 of
conversion bonds found their way back into
the treasury, and bonds OF the same class,
but lnFger denomination, found their way into
the market without fncreaSEag the volume of
debt
repeat, therefore, that there are nolD out
standing $i,67T 500 of conversion bonds is
sued in strict accordance with law, which are
merely tho representatives of bonds aud
stocks Of various classee, and, in the aggre-
gate, OF equal amount cancelled and fled in
the treasury. This statement is based upon
my personal examination Of said cancelled
bonds and stocks, and may be relied upon az
accurate In every particular.
There arc also outstanding conversion bonds
to the amount of $5,965, GEO. which repro
sent an actual increase of the public debt
Ii has been alleged that these bonds were
hyposhecated for security OF loans, by order
OF the Financial Board and tile moneys re-
coived therefrom used to cover the deficit of
| revenue from taxation, or to "bridge the
ehasm hetween tho receipts aud appropri-
atoms, and tho State being unable to redeem
the bonds at tho maturity of the loans, they
were forfeited and sold. aud thus by the
amount represented upon their face, Increased
tho public debt
will not venture to assert That these ale
| atious are entirely at variance with the facts,
because have been unable to get access to
tho records OF the Financial Board, or 20 ascer-
tain the exact time eacll particular loan was
negotiated, aud the amount thereof us also
the amount Of bonds forfeited for each loan
the State failod to discharge at maturity But
this | assert with certainty, that more thau
| oue.sovepth Of said amount Is accounted foe
in another way.
1t appears, that on the eth of December,
| 1870, tho then treasurer OF the State, in a
letter addressed 10 tho financial agent, Ia
copy of which Is of record in the reasu, y
| stated that the State owed debt o. S3O3.
| 343.S9, duo In 1870, known as Fire Loan
Stock, and nlso debt Of $3.50, 900, duo in 81 |,
known as State Capital Bonds, which debts
the financial board had instructed him, tho
treasurer, to discharge. with authority 10
mako whatever arrangements might be neces.
sary therefor. He accordingly placed in said
| agents possession bonds for the conversion
| OF State securities, amounting TO $500, 600
directing him 10 make such use OF said bonds
iaul l0 atfRi,