The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1874-04-29
The Bond Question.
NEW YoRK, april 28. 1874.

!umns the medium OF controversy, but
from tho simple desire to deal with
this much ve1ed subject Of conversion
bonds, in the light Of honesty and FUR
dealing. [ have to- thank you for your
indulgent treatment of Eyself, aud the
courteous tone you have maintained in
discussing the subject in your issue Of
the 14th instant; but must needs dis
sent from your urrnignment Of facts,
and your conclusions drawn therrfrom.
With all respect, think you argue from
untennble premises, md the drift OF
your remarks does not touch the ques-
ton at issue, viz: The rights-what we
consider the inviolnble righta-of inuo-
cent holders. True yon alluda to tie
rights Of such class, but carefully cx-
c.n'!o "S from any benefits pertaining
theret'. aud put us III the pi!iory, Il,
morai, if not legal, frlons. Instead Of
being tan iil-us.t, misrcurascntcd vic.
TINS Of misplaced confidence in the
honor of South Carolina, it seems we
ought to be thankful thut we are let of
thus easily; but our case might have
been worse. seeing that We are regarded
ns receivers md a5cttnrs in the fraud.
We nrc simply criminals ~ large. You
admit that If the State Treasurer had
issued larger amount Of bonds than
the law allowed, innocent purchasers OF
the samc might have II CHIN against the
State, and the State held responsible for
the issue of such bonds. I may Gn per.
mitted to state, that the law in ull such
cases has decided in favor of the bond
holders. There was notable case Of a
duplicate issue Of bonds tried in this
State. some years ago, known us 'the
Schuyler bond case" The bonds were
issued frau!ulemGy-thnt was admitted
by both parties. After brief hearing,
the rdil''ond company was held responsi.
De. lu that particular, at least, your
State can be securely held responsible,
without doubt or question, as part OF
the conversion bonds are duplicate
Issue. and the Act authorizing the issue
is silent regarding tho numbers or the
color Ct the same. You assume that
the Act only permitted the Treasurer 10
Issue bonds to certain persons comply
ing with certain conditions The
Fi"anctM Dod'0 dger with yon in opi-
Mon. aud the Attorney General Of the
Statc 1ecitied Mat he bands cou,d be
'sea as collateral security for loans
made tie .Sate, which was done.
You further assume that all parties
touching. III any way, these bonds, did
80 with the knowledge that they we're
fraudulent. and took that risk along
with the bonds-a most sreeping as
sumption, III view of tho f,ct that the
e.cecuHre cTicsrS Of .pom. .Stu.e, then in
office, said, and say mom, that the bonds
are Wild. Every stock exchange in the
country adnlit the same. The bankers,
who i"nned money uron them, the in
suraace companies and savings iusiitn-
tions. who bought freely of them, have
no. altered their opinion, and it is ouly
Il portion Of the people Of your State
{for mn given to understand your own
citizens hold not few Of tdcm) that
hold opposite viows.
Whatever nny sim.y!e indirifuK might
ttn or mouAi ito, i'll the way Of wrong do
lug. l think we might safely assume
that the 1.JcrcM parties oi!n,lc,i 10 would
not, III their coAec'ire cnpucily. c,y,nyy or
p"iicii,,Hc in any .fi'tmi huocn or S.s
pecicI In the same degree of candid
opinion. We .0ay conclude that investors,
! prnycrbInHy ~ cautious class Of people
would not be-: apt To turn their hard
carne.! money into sccuriticS to ;Si.;nh
Saspiclon were attached. 1t is admitted
thar there w;ls and arc valid conversion
! boi.aS cXtnnt. You say that there are.
/ likewise, fraudulent bonds OF tho saul.,
class. How could OF any one dis
tingulah between the real aud the
assumed? Tha act does not enlishten
us upon any distinctive feature OF re-
cosnltion. We had the evidence and
the assurance CT the Governor, the Trca-
surer, the Secretary of State aud the
Attorney General, all high State officials,
bankers, and your own State agent, who
paid interest upon them. vouching for
their authority. The records at Colum.
bla were inaccessible to us aud to oil but
State officers; but even if we had found
entrance there, it would have been of
but little service. At the Morton Bliss
trial, before your Supreme Court, your
Attorney-G General soIemnIy stated that
they (the present Government) could u OF
tell which were good and which were
bad among tho bonds issued. It was
ouiy last TALL, after inpse OF several
years. that your august Legislature
found out the secret which had remained
sealed up until then. They have never
explained whero the iiyai camu from,
nor why the bill, ordering M examina.
ton into the public debt Of tho State,
ne gear dcfore. perished in its pigeon
hole. We had all the evidence and
assurance any ono could reasonably