The Stark County Democrat. [volume] (Canton, Ohio) 1833-1912, 1877-09-20

proximately to $3000.000. The tax OF
the first year WAS 81 mills upon the as
sessed valuation Of the property IN the
State. This tax was expected TO ylelu
ST. 100000 or ST. 800 600 The fiscal year
of the State closed on October 81, 1868
We went into Office in July and spe.
cial session of the Legislature was called
Immediately. Instead of imposing a tax
to cover the expenses OF lhe current
year as well as the year ending OeIoOer
81, 1869, we only imposed one tax, rs we
had then an honest intention to relieve
the people of the State of all but neces-
sary burdens. So we made tax Tor one
wear only, intending to provide for out
standing claims by the issne OF bonds,
or this tax imposed we collected about
three fourths, and the balance was left
outstanding. No extraordinary meas
ures were resorted to IN order to enforce
its collection, and j think that judgment
was never obtained agains the deIin-
quents in the courts.
Chamberlaln's Peculiar Bills.
"Under the provisional government a
law had been passed authorizing the
funding of all outstanding debt, interest
and principal, up to July l, 1867. The
Legislature in July, 1868 passed a bill to
pay all interest due from Jaly l, 1867, in
gold. This bill WAS engineered by the
State Financial Agent, ii. II, Ktmpton'
He was q friend and classmate of Cham
berlain's, and was introduced by him to
me as the proper man to be the tnan'
cial agent of the State. He was ap'
pointed by the Financial Board-Scott,
Chamberlain and myself The bill was
regarded by us as KimptOn's measure,
and he represented that it would raise
the value of the bonds materially and
enhance the credit of the State, In this
view he was supported by Chamberlain
Here l may say that l never knew a
financial act to pass the Legislature
which was not proposed as bill by
Kimpton and sanctioned by Chamber.
lain. His bills were always passed as
presented. In regard to this particular
bill it should be added that the interest
demanded was paid in gold until the
winter of 1769-70, when the law was
changed 80 that thereafter the interest
was payable in currency. Kimpton was
himself obliged to obtain the change Of
the act, as it was seen to be impossible
10 meet the demands upon the treasury
for gold. In the course Of 1868 and 1869
the Legislature passed acts to provide
for the redemption at par of all floating
debts outstanding All these financial
measures authorizing the issue of bonds
were susceptible of two interpretations.
The wording Of one act will sufficiently
illustrate this point;
"'The Governor is hereby authorized
and directed to borrow ST 900 600 upon
bonds OF the State of South Carolina,
said bonds to he signed blythe Governor
and Treasurer and sealed by the Secre'
tary OF State, to be payable in South Car
olina and at the New York financial
agency
"The debatable point is whether bonds
representing 81 900. 600 were to be put on
the market, or whether 81 900 600 was to
be obtained by the sale of bonds at any
price. This point will take up present
iy. In round numbers the Financial
Board was authorized to raise $3 200 900
in the years 1868 by the issue of bonds
of the State of South Carolina; 81 600 900
for the payment of interest on the public
debt at 6 per cent; 81, 10000 for the re-
lief of the treasury at per cent; 100000
for the redemption of Governor Orr's
currency; and 500 600 for the purchase
of lands under the Land Commission;
81. 200 900 was called for in addition to
provide for the redemption of the bills
of the State Bank These bills have not
yet been redeemed, but are fl rating about
in considerable quantities, though | do
not believe any one knows how many
are in existence. In this session, also,
the famous Conversion act was passed,
This act authorized the issue of bonds to
take ~ all outstanding bonded and stock
Indebtedness of every kind, and author.
ized furthermore all holders of stock or
any kind of Government securities to
convert them in these bonds. The OBJ
iact of this act was declared to be to give
uniformity and consolidation to all class
Is of securities. All these acts, repeat,
were presented by the Financial Agent,
Kmpton, and urged upon the Financial
Board by him as a necessity. They were
never prepared 10y Scott or myself, but
always by Chamberlain and Kimpton.
Chamberlain used to say to me that
Kimpton declared these measures to be
necessary, and he supposed that they
were so,
"Under the act authorizing the Cover
nor to borrow 81 900 900 to pay the inter
est upon the public debt, $1,000 600 of
bonds were issled; S. 5000 Ofthese were
returned and burned in presence of the
Financial Board and Others, $3.50, 600
were exchanged by the Financial Agent
for conversion bonds;$l 250 900 remained
out. The $500,0O0 OF bonds that were re-
turned had passed through the hands of
the Financial Agent. While in his pos
session coupons might have been taken
off, or they might have been applied for
the payment of interest, and so got into
the hands ofthe public. In this last way
they might have been presented to the
State Treasury honestly for funding. |
was sued upon a civil process for $3.50 600
in 1874, the allegation being that l
had funded that amount illegally in the
Treasury. JluRIn6uL was IouuVICu
against me for $4,000, but this, you will
bear in mind, was the judgment on
technical wrong in civil suit.
"As soon as the Conversion act was
passed, large number of these bonds
were printed. OF these bonds ST. 200 600
we're issued in accordance with the pro-
vision of the act, but all others issued
were put on the market in an arbitrary
manner. For all that, the money obtain.
ed by the sale of these bonds, which
were outstanding until repudiated by
Frank Moses, was used by me, as Treas
urer, in acc jrdanCe With law.
Enormous Issues Of Bonds,
"Now, the So 200 900 which the Legis-
lature authorized the Governor to raise
by the sale of bonds had to be obtained
at gacrifce The bonds of the State
would not sell at anything like par. In
fact when first issued we were obliged to
dispose of them for twenty cents on dol
lar. When the acts passed the Legisla-
ture I understood, and l think it was
oanarallv undarstood hv all mamhers of