The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1874-03-25
COLUMBIA, s. G.
Wednesday Morning. March rs, 1874.
Tho Conversion Bonds.


to be killed off. The New York holders
write to revive the spirits and re-;nvigo-
rate the efforts of their allies in this
State. There seems to be desire, il
not purpose, to repudiate the ropudia-
tion. Perhaps the spiriting away of the
Act to prosecute Parker is the Arst step
in this game. A correspondent OF hie
writes in holy horror of the hollow
promises of reform made by the State
administration. he says the party
created debt. legalized it soiemnly in
the face of society, then stultify them.
selves by discwning it. 1.-THE present
government wac elected especially upon
their promise to REFORM" True; but
they never promised such reform as the
writer means. On the contrary, they
engaged to throw overheard every bond
to which the least shadow OF suspicion
could attach. They have not done
much to redeem their promises. But
they have declared that the conversion
bonds were illegally issued. And the
Legislature passed an Act to bring the
Treasurer, who was the agent employed
in issuing and placing them on the mar
ket. to stern account. That Aot has
been made way with; but the purpose
which it embodied is not destroyed.
Touching the solemn legalizing pro-
cess to which W. 8. B. alludes, we have
only word OF two to say this morning.
It is brief history of the bonds, and
how they came to be put on the market.
The statement is sufficient to show their
want of validity, and requires no argu-
ment to enforce it.. The title of the Act
under which they were issued was, "An
Act to provide for the conversion of
State securities" It was not intended
to create new loan, or to authorize the
contraction OF new debt. It simply
authorized the State Treasurer to take
up stock or coupon bonds OF the State,
whenever properly presented. and to
issue in their place other coupon bonds
and stock. bearing the same interest as
those for which they were to be substi.
tinted. The principal and interest we're
to be made payable at the State FL
nanoial Agency in New York. The pro.
fessed object was uniformity OF issue.
The real object was different
Under this ACT, Parker issued new
coupon bonds and stocks to the amount
os $1,6l1,O ,OO0 in lieu of old. Had he
stopped here. he could not have been
so much to blame. But he had got his
hand in, and proceeded to issue new
coupon bonds to the amount Of S., $685.
000-not. mark you! in lieu OF old
stock aud coupon bonds. but for the
purpose of using them as credit and as
means OF raising the wind. This i'm
preston soon followed, and damaged
them on the New York market and
stock exchange. The next step was to
get them bolstered. And tho facile and
easily duped Legislature which passed
the Act originally, whose purpose many
of the members knew but imperfeotly,
was called upon to "validate" them
that is, those which were badly tainted.
Aud The Legislature did it.
Next followed reaction in the pub
lie mind, even of Radical circles. The
impression became fixed that there was
fraud in the transaction, or, to uso the
euphemism of the day. that they we're
''put improperly upon the market"
After long hesitation. after all the bla-
tant promises OF campaign and ring
ing Of many changes. the population
was at last effected, during tho last ses.
sion of the General Assembly. They
were obliged to unload" They could
no longer profess to carry about S4. 000,-
600 OF these bonds hypothetical in New
York-for whit, no one could toll-and
no account given at oil for nearly
S2,000,000 more. Those who hold and
hug them in the dark, do not fancy that
any light shall be thrown upon them.
They have yet to learn, but they will
learn, we hope, that ex-Treasurer Parker
and the Financial Board do not consti-
k.k. C1-tl> 6,sol:co Ti,o Gooo..1