The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1875-02-14

ing $3.50. 900 Of thNt issue, with the
whole 81, 600. 900 OF the second issue,
remained outstanding. immediately
after the passage OF the third rscited
Act, 1898, 900 Of bonds for the relief
OF the treasury we're issued and de-
livered to the Financial Agent. I'm
mediately after the passage OF the
fourth reoitcd Act, 5000. .0DO Of Land
Commission bonds were issued, aud
delivered, not to the Land Oommis.
sioner, but to the Financial Agent.
Immediately after the passage Of the
fifth recited Act, $5OO,0OO Of Land
Commission bonds were issued, and
delivered. not to the Land Commits
siener, but to the Financial Agent.
The total amount of bonds issued
under oil the recited Acts and deli
vered to the Financial Agent, exclu-
sive OF the $3.50. 900 of bonds for the
payment Of interest on the public debt
retired. appears TO have bsen So, 549,-
600. What disposition he mado Of
these bonds, il genera! :e.ms. the
Financial Agent himself testifies:
"Various portions were from time to
time pledged by me for loans obtained
to raise funds to meet drafts and ad-
vances made to the State of South
Carolina; the said loans being in the
| aggregate several hundred in number,
for sums OF various magnitude, and
for periods varying from one day to
several months. The bonds
pledged by me as security for loans
were redeemed and repledged. in
many cases again redeemed aud re-
pledged. Bonds might be pledged
once, then redeemed and sold for ac-
count Of the State, or they might be
pledged scores of times, according to
circumstances and the necessities OF
| the State"
In September. 1869. $500. 900 of the
bonds FOR the redemption of bills re-
oeivable, and in October, 1869, the rs.
naming $500. 600 Of the bonds for the
redemption Of bills receivable, nnd
$500. 600 OF the bonds for the payment
OF interest on the public debt, were
sold directly by the Financial Agent
at seventy cents on the dollar. What
was realized from the remaining
$3.50. 600 of the bonds for the payment
OF interest on the public debt, the
SS99. 600 OF bonds for tho relief of the
Treasury, and the S7OG, 600 Of Laud
Commission bonds, does not appear.
1t does appear, however, that the pro-
ceeds OF all the bonds were not sufi.
tcient to meet the demands of the State
treasury. The measure adopted to
supply the deficiency was remarka-
bic one. ,-'-n .
Here We omit extracts from the
testimony bearing upon the point of
the right of the Governor, through
the Financial Board. to borrow the
Amount now needed upon coupon
bohds. 1t vas done.l We come next
to the conversion bonds. A large
number of them were issued and deli
vered to tho Financial Agent to raise
so much OF the several sums of money
authorized. or assumed to he author.
lied. to be raised under the recited
Acts, as had not been already raised
on the bonds bearing the titles of the
Acts. Subsequently, the Financial
Agent represented to tho Financial
Board that the bonds bearing the
titles of the second, third, fonrth and
htth recited Acts were looked upon
with distrus., nnd that those bearing
the titles OF the second and third re-
cited Acts were not good delivery at
the Stock Exchange in New York.
Another large number of conversion
bonds we're, consequently, issued and
delivered to the Financial Agent, and
as soon as the loans on tho other bonds
matursd. those bonds werc redeemed
from hypotheoation, and the conver-
sion bonds were hypoth seated in their
stead.
The amount of money required to
be raised by the Financial Agent
grew to be so large. and the number
OF bonds consequently required to be
hypothecated. grew to be 80 great,
that the credit of the State depreoi-
sted. the value of the bonds went
down. and those who held them az
collateral for loans required that the
collateral should be increased. It
seems that there was no apparent way
OF increasing the collateral, except by
issuing an additional number of con.