Port Royal commercial and Beaufort County Republican. [volume] (Port Royal, S.C.) 1873-1874, 1874-03-05
SOUTH CAROLINA BONDS.
LETTER OF Ex.TREASUREa PARK.
Err.
The Scaling Farce Exposed-a Review
Of State Finances-A Scathing Criti'
eism Of the Reform Administrations.
COLUMBIA, S, c., Feb. 18th, 1874.
W. s. BRrE, Esq,
No. 2i Beaver Street. Y:


DEAR SIR:
Your letter of the nth Inst relative to our State
bonds came to duly to hand, and take an carly op-
portunity to reply. cannot say what course the |
State Treasurer win pursue IN the you mention
presume he will conform to the law, and be gov
erned by the records OF his Office Tho issue Of all
the bonds ofthe State amatter OF complete record
and not many suppose not mailer @ record
There Is not bond Of the State upon the market,
which is not recorded in the Treasury Office, the
denomination, the number, the color Of the number
and every fact necessary to their complete e,ogni-
tion You are aware that at one time the widest
rumors were circulated of an immense over-ssue,
giving ris? TO the most exaggerated reports ofan un
known debt, variously estimated at from fifteen to
forty millions OF dollars take this opportunity to
refer to this matter because there are many persons
who still believe these unfound reports and Others
who still continue TO infame the public mind with
these false representations 1t Is very important to
the holders of our securities that they are asked
to surrender portion thereof at ity cents on the
dollar and threatened with total repudiaton o; the
balance that they are made thoroughly satisfied that
the volume ofdebt is no larger than that reported by
the proper authorities II Is unfortunate that the ac'
Of the General Assembly OF the winter Of 1S7l-'72
requiring their registration in New York by the
Commercial Warehouse Company was defeated by
what appeared TO be an exorbitant price charged by
them to perform this service, nevertheless, they reg
stered several hundred thousand dollars Of the
bonds, and error was found so far as they went.
You will agree with me think, that II Is important
to the holders Of securities that they perfectly
satisfied of the amount of the debt because 1t will
materially aid them in determining whether to
compromise or not.
A shCrt time ago addressed letter to the N. Y.
Financier which was published on the 10th Of JAM
copy of which herewith enclose You will learn
my opinion OF the conversion bonds by reading the
first paragraph ofthat letter have not changed my
opinion Of them at all never entertained any 9th,
view. The decision Of your State court in the case
you give, only strengthens my faith in them.
have no cause to doubt, fear whatever, that
our courts should by called to decide upon their
legality that they would render similar decision.
There are TO two sides TO the question. You say that
our Legislature evidently thinks that you and
others holding our securities have 10 rights which
they are bound to respect" Fam sorry to say that
think your estimate ofti, m is quite correct hope
sir, that you and others like yourself holding our
securities will test your rights in the courts and OBJ
tain them. livery much fear that II you wat for
Justice attie hands Of our present rulers that you
viii, lie doomed to disappointment. Ii 1t was from
inability of the State meet her interest that IL was
not met there might be some excuse for this delay.
If the debt Of the State in excess Of the amonnt
named in the Treasurers report or II IL was
there might be excuse for sufficient delay to tst
it, but there would be apology for attempting a
| compromise, much less q reputation. True the
Legislature has not openly repudiated any portion OF
the debt but they might as well have done so; they
1 Al thof uas no far "a
dared 20 ut one STEP They intended to repudate 1t
openly If they succeed In ths partial reputation,
which they have attempted. ! will now return TO
the volume Of debt and the ability Of the State to
pay it. and present such facts and suggestions as may
| occur 10 me Us proceed.
The debt Of the State exclusive 0fintCreS due and
| unpaid Is only little more tho fifteen millions OF
dolas and large though IL seems ~ be- the State has
gmu resources to meet the interest thereon and pay
! the annual current expenses OF an economical ad-
administrations. 4 su,,,.jeDt amount was raised last
yea by tax ton 10 do III ant tn sum will b. pIvLa
by acreascd this year three hundred thousand dollars.
Tie shameful aitemtt of the present administration TO
repudiate portion of her debt has not been made n
account OF the inability Of the State to m G. 1T not a.
all 1t Is apparent that 1t VA undertaken solely Tor
another purpose, viz. TO Withhold the money due Tor
Interest in order 10 sluapder IL for negiiinae pur-
po-cS Tax xes have not b. Gu rcusca They the con-
trary have been largely creased. herewith enclose
YOU some accurate statistics which have complied
that you may see how the money Is spent Observe
the enormous amounts used annually for Legislative
expenses and public printing. This Is no fiction,
thoI g the sum used appeas fabulous: Take ihe
ca 1872 In that year there was ,7l22i943 paid 10
the members, employees, and incidental expenses Of
the GeI eral Assembly, and certificates for at least
100000 issued by the Speaker 0fthc llouse and
the Pr sid MT Of the S a po.tion OI which have
been paid, and the balance outstanding awaiting
payment Look a the item Of pablic printing for the
same year S2l5000. Take the past year, for Legis-
lative expenses regular session, s2599Sl, public
printing 1913, total S623,2,5. That sam ;lOnc
would have gone very far towards paying the inter
est upon the public debt; but that is not all. \
special session called 10 meet near the close OF
the fiscal year and S22GO00 was appropriated 10 pay
for public printing and 1t was Immediately paid,
also portion at least of the legislative expenses Of
that session. Ere this The entire amount has un-
doubedly been paid, amounting in all probability 10
S!jOO0O more, that the cnt;rs expenses Of the
General Assembly and for public printing during the
frst fourteen mouths of the prcs,nt State admins
tratiOn WIS upwards OF a million Of dollars an
amount amply sut!i edt . have paid the annual in
terest upon the entire public debt aud have lei; q
sufficient sum TO have an economical cxpsnditur Of
both legislative expenses and public printing. The
fraud and corruption OF your own City government
under Tweed K Go. could not begin to equal this in
degree Forty Thousand dollars Is deemed sufficient
10 pay the cxl cnSs Oian annual session Of the LgiS-
lature of the great State Of Ohio which COLI &, and
disburses revenue twenty times greater than this
State has done in any year under Governor SCOTS
administration, and ten times grc te' than Is now
.lectcd. But will not cOnment any further upon
this uljcct you can see the figures yourself aud
make your OgH comments. lou nave
learned enough already, Ia satisfy you why your
interest l. not paid, and why this monstrous scaling
and funding, In other words this repudidtng scheme
has been proposed. You will observe that the re-
ccipis from taxes In 1873 were 100000 In cX-
cess Of1Sl and ~ and $500 900 more than they were
in 1870. isexpeced that 'hey will be still furth
increased this year 10y siJ0O0u. THEY are how u,
and being coll ctedk True, the rate Of taxation is
not increased, but the valuation has been adrony
increased, that the fraud upon The people is sgh.
ly vailed. Notwithstanding this incrcaSc not dollar
Of interest is 10 be paid up any portion Of the debt
un!e;s the holders of certain portion of it, to wit:
the old bonds or the .w bOnoS other than the con-
version bond onSent TO SIRE ldcr them ani take
in lieu thereof other ponds at ly cent, on the dol
lar. Even then there is guarantee that will b.
paid. Indeed If the past is any criterion 10 Judge by
il surely vi be paid IL IL is not it will not Ire
the irst time that mOn which had &c collected aud
appropriated TO pay IT, has bc ~ withheld hy the law
making branches Of ncnl and used iorothcr
lurl ees. Upwards Ofs 90 was spent last year by
the pr s,nt administration nj not dollar was paid
for int rest upon the publi debt and is prupos TO
end upwards OF $1,000 this year In looking back
over period ofhr.e years ending respectively in DC
t,ber 1862 1870 and 1871 during Governor Scotts at
ministratOu lind that the annual average expenses
OF the State government including interest upon the
then existing public debt was. one million seventy
tLousard ars; the int rest was then paid in gold,
which Increased the amount IN currency at least
seventy thOus n dollars. But now, without paying
any interest whatever the taxes are nearly doubled,
ana the expen sCS Of the state government exclusive
OF interest are increased more than mi lion OF dol
lars This is the that you do not get the in
tcrest on your bonds; this is the reason why our
Legislators ask you 10 surrender all your bonds
ceIt the conversion bonds fifty cents on the dollar,
and coolly Inform you that If you Go To- do it, th,y
will not pay you dollar Of interest upon any por
ton Of the debit and more than that they will not
pay you either principal or interest on the convcr
sion bond. l think they II be as good as their
wor in this respect for while the extraraSance and
corruption which now prevails continues unchecked,
there is little prospect that the bondhoder will get
anything Indeed believe it Is fixed and s,tHIcHl
purpose not to let the bondhoder have dollar Of his
dues regret TO be obliged TO write these things,
but my scbse Of duty urges me 10 do so. / see no