The daily phoenix. [volume] (Columbia, S.C.) 1865-1878, 1875-02-14
the remaindsr'of she. convsrsisn bonds

she remainder OF &h0. conveIaiOn bonds
! were sold under forfeiture for non.
payment OF loans in 1871 or after, at
various prices, making general ave.
rage of nearly 48 cents on she dollar.
From the sales Of these bonds, amount.
ing to- 88,O57, 800, there ives derived
tho cum OF 88. AZ. 1873. IS 5if3}
As the total amount OF money which
could be lawfully raised under gll the
reoited Acts. under any circumstances.
would be 83. 200. 900. it will be per.
Ceived that the sum realized from the
sales of these bonds Was at least 8242,.
l27. 80 in excess OF the amount which
could be lawfully raised. But the
amount Of 23.200.000 could be- law.
fully raised only il it should be ne.
osssary; aud the record shows thnt it
was not necessary to raise that amount.
Only S298.702 OF the bills receivable
were redeemed, being S201, ,298 less
than Were provided for by the Act; go
that this amount, at least, shonld be
deducted from the 80 200. 600. leaving
only W, 99S, 702 necessary to bo raised,
| even II 1t WAS necessary to raise the
amounts provided for by the other
Acts. aud showing $443. 425 80 to lave
been raised in excess Of tie amount
which could be lawfully raised After
the disposition of these bonds, there
| still remained III the hands Of the
Financial Agent St.456, 500 of the
bonds delivered TO him for the sur.
pose of hypothecation and salo. They
had all been, from time to time, hy-
| pothecated and redeemed from hy-
pothecatiou. Al least 5000, 900 of
4
from hypothecation in regular course,
but also redeemed from hypothecatiop
by the sending of $500, O0O directly
from the State Treasury for that espe-
oial purpose, had been returned to the
State Treasury, had been directed by
the Governor to be cancelled. aud had
been exhibited as onnceled TO q com.
mittee Of the Tax Payers Convention
in 1871. There were also in the hands
| OF the Financial Agent 5000, 900 of
State bonds Purchased for the Sinking
Fund Commission. There we're aso
in the hands OF the Financial Agent
Sl9l,800 of State bonds purchased
with tho proceeds of the agricultural
land scrip.
All of these bonds, amounting to
81, ,848. 800, with $59S, 900 OF bonds of
the Blue Ridge Railroad Company,
guaranteed by the State of South
Carolina, we're hypotheoated by the
Financial Agent, in various portions,
to varicue persons, at various dates,
from the 2lst September, 1871, to the
10th September. 1872. inclusive, for
varions loans, amounting to $547.-
| 622 SO. in further EXCESS Of the amount
which could be lawfully raised.
| For some reason unknown to tho
committee, the Financial Board and
Financial Agent made no reference, in
their settlement of 10th November,
1872. to the fact that the $191, 800 of
State bonds. purchased with the pro.
ceeds of the agricultural land scrip,
were hypothecated with the 81, ,656.
500 of other bonds. But they we're 80
hypothecated, nevertheless, and the
committee can do no less than report
the fact 1t appears, from the testi-
mony OF the Financial Agent, that
some of these Sl.848. 800 of bonds
have beon sold under forfeiture for
non-payment Of loans, and that the
rest of them stili remain under hypo-
thecation.
We think the case we'll made out and
worthy of the earnest attention of tue
General Assembly. We do not see ho W
proper adjustment of the difficulties
presented in this report Gun possibly
harm the general settlement of the
debt made last wintor. We give in
conclusion the euggeAtions Of the COM
| mittee:
l. That the hSpothecution OF all of
the 5 ,S4S, 300 Of bonds was without
lawful authority. for tue reason that
] the whole amount of money which
could Ee lawfully raised under all the
recited Acts had been already raised,
and DO other Act authorized the rails.
ing Of any more.
q That the hypothecation of SO
many Of the $l.848. 800 of bonds as
were bonds for the payment of inte-
rest on the public debt and bonds for
the relief OF the treasury was without
lawful authority for the additional rea.
son that the time within which they
could be lawfully used had already ex.
pired. 1t was provided in the Act to
nuthorizs State loan 10 pay the inte.
rest on the public debt, that the Go.
vernon might borrow the money men
toned in it within twelve months from