The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1875-03-02
SUPPLEMENT TO
The Daily ! /. PEhgnix. /
REPLY. eoF ,TlE STATE TkEAsURER
5To the, SreeiAli Jelht ,Censmitsee. 5.
ExEour1vE DEpARrMENr,
OFFICE OF STATE TREASURER,

CoLuMBIA, s. O., March l, 1876.
D Ne Honorable the House Of Representatives:
gEFThEMEN-I have carefully read the re-
port of the special joint committee appointed
"to ascertain what bonds of the State have
hsep Graded under the act to reduce the vol
sns " the public debt and provide for the
paymeut Of the same; what interest coupons
have been funded under the said act; nnd also
whether the funds for tho payment ofinterest
raised undor the said act layO beon kept aepa-
rate and apart from all other funds, as pro-
vided for in tho said act aud as otherwise pro-
vided by law" and have the honor 10 mako
the following reply: a,.un ,...,
would state, in the first place, that have
not taken the trouble 70 verify the statement
Of the committee with regard to tho funding
Of detached coupons II may or it may not
be correct. The committee arc entire novices
in distinguishing the classEof bonds to which
the coupons belong by the faee of the coupons.
That can be successfully done only BY experts.
The question, however, is immaterial, aud
am perfectly willing 10 aocede the correctness
Of the committees statement and argue the
caseiupon that assumption. l SIMPLY refer to
tho matter here because the entire premises
OF the committee may be Incorrect aid their
conclusions, therefore, worthless.
The points Of Tie committee may be emu
meratsd as follows:
l. The committee blame me for funding cor.
tain hypothecated bonds.
2. The committee declare the funding of
$241,0 coupons that matured OH or before
I;'ls7l, sifraud upon the State.
B. The committee declare the funding of
$l9ss46 coupons that wsreI cut of bonds as
is alleged, before they were hypothecated; as
afraud upon the State.
4. The committee declare the funding of
$6,960 Of coupons of conversion bonds, cut
OF, as is alleged, before they were exchanged.
asa fraud upon the Stats,
6. The committee, declare the funding Of
$s,2ob OF coupons that belong to bonds "oan-
celed unused" as fraud ,upon,the State.
g. The committee charge want of vigi.
lance. 'sbe
Z. The conmittee charge a diversion Of the
interest fund. rSs-l - F' r"
1t might be successfully answered, in
general manner, so far as the first three ALE.
cations of fraud are concerned, that the law
authorised, the funding sos these coupons.
Section Of the act TO redpco the volume of
tho public debt enumeates the classes of
bonds To- be funded. SECTION q then states
that TIE coupons belonging to the bonds emu
merated in the first section should also be
funded ts'j
1t may have been .. a fraud upon the State
for the Legislature to have enacted such a law,
but it certainly was not 4 fraud upon my part
to have executed it. But ! do not think it was
fraud in either case. 2fs
I might safely.s rest the case upon the au-
thprity and requirement Of the la,p, put j am
not content to dc, 80. and win, therefore, dis
ouss the points .imade by the committee
seriatim: ~ ~'9FsS
u !. The committee. state that have funded
bonds that "the unanimous voice Of the
senate said should not DO funded" while they
knew 1t had been done before they uttered
that voice.sf am under the impression, though
it may seem strange to "the unanimous voice
of the SENATE" that when entered upon the
duties Of my Office ] took a solemn OATH and
gave bond of 100000, to obey the const,-
tuition and the laWs Of the State, not "the
unanimous voice Of the senate"
If "the unanimous voice of the senate"
could only get majority OF the house and
tho governor to agree with them, and then
proceed in q constitutional manner to express
their will in the form OF a statute repeating
the existing law under which 4 am now act.
ihg, otes'it would be my duty to obey 'the
unanimous voice Of the senate" and the ma
jority of the house, and the wishes of the gov
ernor: But until that takes place shall feel
compelled to pursue the even tenor of nv
way, notwithstanding 1.-The unanimous voice
Of the senate. "@'a g"
But the committee that made that recon-
mendation, and !" the unanimous voice of the
senate" do not, in my. judgment, comprehend
the real question at issue when they advise
that certain bonds bypothecated in New York
should not b. funded because money had
been raised upon them in excess of the amount
authorized.
The State had received tho money and used
It during tho administration of my prede.
cessor, and the question now Is not the right
OF the parties who had the coilaterals, or of
the third parties who may have obtained pos.
session of them hv puroho ca ,,,3o. e..E:.,,..