The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1875-03-11
The Answer of State Treasurer Cardozo.

The Answer of State Treasurer Cardozo.
The answer of the State Treasurer to the
charges made against him by the joint investi-
eating committee, in which it was alleged that
large amount of bonds and coupons were
improperly funded, and that the interest
money had been misappled, was submitted to
the House of Representatives on Tuesday of
last week. The exceeding length of this doc
ument prevents its appearance in our columns,
but we will append hereto brief synopsis of
the main points in Mr.. Cardozo's defence, ex-
tracted from the Charleston Neavs and Courier.
This answer is too largely occupied with
sneering remarks and attempted sarcasm upon
the General Assembly, and the general tone of
the reply is fifty calculated to give serious Of
fence to the members of that body. Mr.. Car
dozo seems to think that he is alone qualified
to Judge as to the propriety of financial trans
actions, and we have no doubt that his stupen-
dous arrogance has induced the Legislature to
make closer scrutiny into his official conduct.
His insolent bearing and outrageous assumacy
cannot hide the nature of questionable trans
actions in the management of his Office, and
were this defence sufficient to exculpate him
beyond the shadow of doubt from all charges
of irregularity and fraudulent conduct, we
think he deserves salutary lesson upon off,
cial behaviour.
Another feature of Cardozo's reply deserves
word of comment. He seeks shelter behind
the reputation of Gov. Chamberlain, who is
not responsible for the management of the
Treasury. We remember last summer that it
was favorite theory Of Mr.. Cardozo, in e1-
planning the shortcomings Of previous admin
istrations, that every department of the State
government ought to be held responsible for its
own official conduct This rule can justly ap-
ply to the Treasurer's Office at this time, for the
transactions of which the committee complain
were mainly before the Inauguration of Cham
berlain. Hence, unless the Governor chooses
to identify his official career with the sleek
and oily State Treasurer, and voluntarily as
sumes to share the fate of that worthy imita-
tion of the immortal Chadband, we cannot fail
to think that the assumption is unauthorized,
and it would be a relief to know that the theo-
ry of last summers campaign is not forgotten
by Mr.. Chamberlain.
We append the summary, emitting the COM
ments of the NeaUs and Courier
l. Mr.. Cardozo contends that the Committee
do not comprehend the real question at issue,
when they advise that certain bonds hypothe-
Gated in New York should not be funded, be-
cause money had been raised upon them in
excess of the amount authorized by law. The
holders of these bonds have, by law, the right
to fund them, and the-only question is, whether
the State will so fund them, or raise, by taxa
ton, S643,OO0 to pay the debt for which they
were hypothecated or forfeited, and in no case
does the State by funding the bonds, lose the
equity of redemption.
2. The Committee objected to the funding of
coupons that matured on or before July l, 1871,
because they have every reason to believe that
the State had, previous to October 81, 1871,
paid all such interest in full. Mr.. Cardozo
shows that there are coupons in the Treasury
corresponding in amount to the interest on the
public debt reported to have been paid, and
that the unpaid interest outstanding on Octo-
Der 81, 1871, amounted to S567 ,246.
3. As to the funding Of coupons alleged to
have been cut off before they were hypotheca-
ted, which coupons were, therefore, the proper
ty of the State, Mr. Cardozo asserts that the
bonds alleged by the Committee to have been
first hvpothe in 1872, were first hypothe-
Gated 1869: Mr.: Cardozoo, moreover, holds it
to be a settled principle of law that the holder
of bonds as collateral security has right to
collect the interest that natures during the
hypothecation.
4. The Committee charge that $3.50 OF
conversion bond coupons were funded, which
coupons were the property of the State when
they matured Mr.. Cardozo shows shat the
bonds to which the coupons were attached were
outstanding when the coupons matured, and
that the bonds were returned to the State with
the coupons cut Oft.
S. As to the funding Of S9,2O5 of coupons
belonging to bonds which were cancelled un-
used" Mr. Cardozo says that the Committee
failed to show when these coupons were funded.
The law did not authorize the funding of the
bonds labelled Cancelled unused" and, under
the letter of the law, the coupons of the bonds
should likewise not be funded When Mr..
Cardozo learned that s., 300 or 81 400 of such
coupons had been presented, he directed that
they should not be funded. In all, $3.50 OF
such coupons had been cut off, and if rs, 2o5
of such coupons prove to have been illegally
funded, Mr.. Cardozo is ready to give the State
one-haif of the consolidation bonds issued in
exchange for them. The Comptroller General,
who is equally responsible with the Treasurer,
will doubtless make good the other half.
6. In answer to the charge of negligence,
Mr.. Cardozo shows the difficulties attending
the execution of the funding law, and points
with pride to the fact that the Committee ex,
amined mil $s64,O36 of detached coupons and
hundreds of thousands of bonds, compared
them with transactions recorded in the books,
and found them in every case perfectly correct;
Nor did the Committee find that single bond
or coupon of the S5,965, 600 of conversion
bonds prohibited from being funded had been