Keowee courier. [volume] (Pickens Court House, S.C.) 1849-current, 1877-09-20


obtain the change Of the act, as it ,wps seen
tho treasury for gold. '''' y, 'i
In the course Of 1868 and 1869 the Le--
gislaturc passed acts to provide for the re-
demption, at par, Of all floating debts out
standing. All these financial measures
authorizing the issue Of bonds were suscep.
tible of two interpretations. The wording
of ono act will sufficiently illustrate this
point: ''Thc Governor is hereby authorized
aud directed to borrow 100000 upon
bonds of tho State of South Carolina, said
bonds to be signed by the Governor md
Treasurer, aud scaled by the Secretary of
State, 10 be payable in South Carolina and
at tho New York financial agency" The
dcbatablo point is whether bonds represent
ing Sl,000,000 were to be put on the
market, or whether $1,000. 900 was to bc
obtained by the salo of bonds at any price.
This point | will take up presently. In
round numbers the financial board was au-
thorizcd to raise S3,200,000 in the years
1866 by the issue Of bonds of the State
Of South Carolina; Sl.000,000 for. tho pay
ment of interest on the public debt at per
cent, 100000 for the relief of the
treasury at per cent, S500,000 for the
redemption Of. Governor Orr's currency,
and 100000 for the purchase of lands
under the lund commission. One million
two hundred thousand dollars was called
for 10 addition to provide forahe redemp-
tion of the bills of the State bark. These
bills have not yet been redeemed, but arc
| floating about in considerable quantities,
though do not believe auy one knows how
many arc in existence.
In this session also the famous Conycr-
tho issue OF bonds to take up all outstanding
bonded and stock indebtedness Of cvefy
kind, and authorized, furthermore, all
holders of sioux or ony kind Of government
securities to convert them into these bonds.
| The object of this act was declared to be to
give uniformity and consolidation to all
classes Of securities. All these acts, I re-
peat, were presented by the financial agent,
Kimpton, and urged upon tho fnnpcial
hoard by him as necessity. They were
never prepared by Scott or myself. but
always by Chamberlain and Kimpton,
Chamberlain used to say to me that Kimp-
ton declared these measures to be necessary,
and he supposed that they were so. Under
the act authorizing the Governor to borrow
81 ,000.0 900 to pay tho interest upon the
public debts, S2OOO,OOO of bonds were
issued. Five hundred thousand dollars Of
these bonds were returned and bonded ip
presence of the financial board and others.
S250,000 were exchanged by the financial
agent for conversion bonds, and 81 ,250.000
remained out. The S500.000 bonds that
were returned had passed through the hands
Of the financial agent Whilo in his pos
session coupons might have been taken off,
or they might have been applied for the
| payment Of the interest, and so got into
the hands Of the public. In this last way
they nigh have been presented to the State
treasury honestly for funding. I was sued
on a civil process for S450.00O in 1874,
the allegation being that had funded that
amount illegally in tho treasury. A iudg-
ment was rendered against mo for S75, 600;
hut this. you will bear in mind, was the
Judgment or technical wrong in a civil
suit. AS soon as the conversion act was
were printed Of these bonds Sl,200,00Q
were issued strictly 10 accordance with thd
| provision of the act, but all others issued
were put on tho rnorket 10 . 90 arbitrary
manner. For all that, tie money obtaincd
by the State on these bonds by Frank Moses
was Issued by me, as treasurer, in accord
ance with law.
ENORMOUS ISSUES OF BONDS.
Now the SO, 100000 which the Legisla-
turo authorized tho Governor to raise BY
the sale Of bonds had to be obtained at d
sacrifice. Tho bonds of the State would
not sell at anything like par, In fact, wher}
first issued, we were obliged to dispose Of
them for twenty cents on = dollar. Whed
the acts passed the Legislatures, I iupdert
stood, md think IL was generally Lhpdcrt
stood by al members Of the Legislature
except those let into the secret, that SB,+
100000 10 bonds at par was tho total sum
authorized by the aots. When the acts
were passed, however, Chamberlain and
Kimpton pointed out what was tho literal
Interpretation of The acts They oontcnded
that bonds could be sold at auy sacrifice to
obtain the SUN in cash of $3 100000. Re
lying on Chamberlain as tho legal adviser Of
tho board, Scott and consented TO tho
issue of tho amount OF bonds necessary to
raise the authorized sum. He found, how
ever, that the ordinary bonds of the State
were not taken readily when put on the
market. Bankors require the best security
possible, before they will invest their money
in tho purchase of bonds, that tho bonds
are legally issued. This point was involved
in somo doubt, and when they discovered
that there were moro than million Of bonds
issued under the not to provide for the pay
ment of tho dobt, thoy refused to deal in
these bonds, or rather to take them 10 any
way. In this cxigenoy recourse was had to
tho aot authorizing tho issue Of conversion