The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1874-05-13

.-.Fs, 81
Carpcs-Bag Rspudiation-south Caro-
iinn's Treasurer in the Astor House.
A portly gentleman held court in
Parlor No. e, of the Astor House yes-
terday. He was carefully but not
showily dressed in u euit OF English
cloth and blue chinchila 'overcoat
lie wore no lswelry save pair Of
cameo studs, which adorned spotless
linen shirt front. His faco was shade
winter than nut brown, and glossy
hair ourled crisply over his head de-
spite the hair-drcsser's efforts to make
it !ie straight Close-trimmed whis-
kersaframed his checks, and black,
beedslike eyes looked out from under
not very intellectual forehead. His
regular features seemed to have been
tashloned more after those OF his white
pTogenitors thHu his color would haye
led one to expect. He would have
passed readily for the steward of some
h-st class hotel. It was the Hon. T.
l.: Cardozo, former Secretary Of State
OF South Caroline, now her Treasurer,
ehtt the hall GOzen men who sat
around him were tue men of means
who saw profit III buying South Caro-
llna bonds, which the carpet -baggers
Issned ut nny figure from 20 to 20 per
Cent. They called at the invitation
, Of the Hon. L. l.. Cardozo TO learn
why their invest ments returned no a.
ttrest, aud why the bonds could be
bought ~ crer market ut seven per
c::ut.
Treasurer Car.iczn acted tue diani-
de.i debtor as we'll as though he lad
| beun used to the role all hia life.
Knowing that the debtor for once h.,i
the advantage, he could afford to au-
swer ntl questions with quiet conde-
scenslon. He nse,l well chosen Eug-
iish, aud his explanations showed him,
self thoroughly possessed of the key
to the labyrinth Of South Carolina
finances.
Treasurer Car,lozo unfoldell to his
auditors tue newest scheme Of the car
pet-bagg"rs to repituish the Golfers
and ostensibly reduce tho State debt
one-ha!f His hearers were not much
Interested in that part of bis talk,
| anything tending to enable them to
get what they have already Invested
appealing much moro nearly to their
sensibiiity. 1t may intcrest the reader,
however, to know thut the new plan is
simply to replace the bonds outstand-
ing by funding bouds. at the rate of
one OF the latter for two Of the former.
The ACT authorizing the new scheme
Was passed. by the last Legislature. It
takes, or was Intended to take, effect
January l. 1874. The design is to
retire about $4,000. 900 conversion
bonds Of previous issues, taking them
up with S5,000.O00 funding bonds,
with twenty years to run-a practical
reputation Of IS 900, 600 Of the State
Indebtedness. The capitalists who
beard Treasurer Cardozo unfold this
remarkable scheme of making one dol
iar do duty for Two dollars ara the
hcuviest owners Of about S., 600, 600
conversion bonds, which were nego.
tiated in the New York market by
| Parker, the former Treasurer, and IL.
q. Kimpton, State Financial Agent.
This issue OF bonds represents previ-
GUS uttempt Of the carpet bag Lcgisla-
lure to pay old debts by contracting
new ones. Reckless financial manage
ment had empticd the Golfers aud
flooded the money markets with State
stocks aud bonds. An Act was passed
authorizing tho conversion of such
floating an,i certified Indebtedness into
bonds. the negotiation of the bonds 80
uttered being limited to the purpose
named. Messrs. Kimpton, Parker,
NeagIe and Governor Scott threw the
bonds on the New York market, ard
they were purchased at from tweuty-
five to fifty per cent. discount. All the
bonds were soon disposed of, only u
small fraction having been used for the
purpose intended by the ACT uuthoriz.
ing then. The succeeding Legislature
enacted law validating this illegal
transaction, but the new Legislature,
which was elected with Governor
Moses, inyoldated tho former valida.
tioa and repndiut. i the bonds in toto.
Treasurer CariloZo having explained
these points ut som. length, smiled
upon his auditors, and held himself
really to be questioned.
An octogenarian creditor, VII use
voice was almost iuaudiblc from usih-
MA. inquired whether the State ha,
repnl'ated all its bonded Indebtedness.
by no MEANS" replied Mr.. Cardo.
~. "As have already explained,
S,uth Carolina stands rendy TO provide
fer ali its honest Indebtedness
"Io% do You know what bonds are
honest and what no!?' inquired the
ociogcnariau.
Il have iii" Numbers uf all bou,ls,