The weekly Union times. [volume] (Union C.H., South Carolina) 1871-1894, 1877-09-21

value of bonds materially and enhance tn,
credit OF the State. In this view he wa.
supported by Chamberlain. Here I ma,
say that never knew financial act to pas.
the Legislature which was not proposed a.
bill by kimpton and sanctioned by Cham
Derlain. His bills were always passed a.
presented. In regard to this particular bill
it SHOULD be added that the interest deman
ded was paid in gold until the winter 1869
70, when the law was changed so that there
after the interest was paid in currency
Kimpton was himself obliged to obtain the
change of the act as it was impossible to
meet the demands upon the treasury for
tgold. In. .ths.Noarse1of 1868 and 1869 tthe
}}Legislature passed acts to provide for the
| redemption at par of all floating debts out
standing. All these financial measures au-
thorzng the issue of bonds were suscepti-
bic OF two interpretations. The wording
of one act will sufficiently illustrate this
point:
"The Governor is hereby authorized and
directed to borrow 81 100000 upon bonds
of the State Of South Carolina, said bonds
to be signed by the Governor and Treasurer
and sealed by the Secretary of State, to be
payable in South Carolina and at the New
York financial agency"
The debatable point is whether bonds re-
presenting 81 900 900 were to be put on the
market; or whether 81 100000 was to be OBJ
tanned by the sale of bonds at any price This
point will take up presently. In round
numbers the Financial Board was author
lied to raise So, 200, 900 in the years 1868
SO by the issue of bonds Of the State of
South Carolina /; 81, 100000 for the pay
ment of interest on the public debt at per
cent; 81 900, 900 tor the relief of the trca-
sury at Z per cent; 100000 Tor the re-
demption of Governor Orr's currency and
100000 for the purchase of lands under
the Land Commission; 81 200, 900 was call
ed for in addition to provide for the redcmp-
ton of the bills of the State Bank These
bills have not yet been redeemed, but are
floating 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 up all outstanding bonded and stock in
debtcdness of every kind and authorized
furthermore all holders of stock or any kind
Of government securities to convert them
into these bonds. The object of this act
was declared to be to give uniformity ar d
consolidation to all classes of securities
All these acts, l repeat was represented by
the Financial Agent, Kimpton, and urged
upon the Financial Board by him as i ne
cossity. They were never prepared by 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 50.
Under the act authorizing the Governor
to borrow 81 100000 to pay the interest
upon the public debt, $2,0O0,OOO of bonds
were issued 100000 of these bonds were
returned in presence of the Financial Board
and others $25O,OO0 were exchanged by
the Financial Agent for conversion bonds !;
81 ,250,0O0 remained out. The 100000
of bonds that were returned had passed
through the hands of the Financial Agent.
While in his possession coupons might have
been taken off, or they might have been ap-
piled for the payment Of interest, and so
got into the hands of the public. In this
last way they might have been presented to
the State Treasury honestly for funding
| was sued upon civil process for $780,
900, in 1874, the allegation being that |
had funded that amount illegally in the
Treasury. A judgment was rendered
against me for s75, 900, but this, you will
bear in mind, was the judgment on tech
nical wrong in civil suit.
AS soon as the conversion act was passed
avery large number of these bonds were
printed. OF these bonds 81 100000 were
issued strictly in accordance with the provi-
| sion of the act, but all others issued were
put on the market in an arbitrary manner
For all that, the money obtained by the
sale of these bonds which were outstanding
until repudiathed by Frank Moses, was used
| by me, as Treasurer, in accordance with
| law.
ENORMOUS ISSUES OF BONDS.
Now, the So, 100000 which the Lcgisla-
ture authorized the Governor to raise by the
sale Of bonds had to be obtained at a sacri-
fee 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 dollar. When
the acts passed the Legislature | understood
and think it was generally understood by
all members of the Legislature, except those
let into the secret, that S3 200, 900 in bonds
at par was the total sum authorized by the
acts. When the acts were passed, however
| o.l K;,oytnr xo,,>toI o,,,