Orangeburg news and times. [volume] (Orangeburg, S.C.) 1875-1877, 1877-09-22

10 convert Inen IMP $sCDeSe D0nu5.
The object ofthis act Eyas declared to-.
be to give uniformity and consolida-
lion to all classes ofsecurities. All
these acts, repeat, wdre presented by
the financial agent, Kimpton, and
urged upon the financial board by
him rs necessity. They were never
prepared hy Scout o,smyself but al
ways by Chamber lalp and Kimpton.;
Chamberlain used tp5 say to me that,
Kimpton declared these measures to
be necessary, and lie supposed that
they were SO. Undcr,the act'author-
izing the Governor to olborrow 81, ,0OO;-2
900 10 pay the intcrEst. upon the pub
lie debts, $4,000, 900 Of bonds were
issued. Five hundlea thousand dol.
lars Of these bonds we're returned and
bonded in presence Of the financial
board and others, $3.50, 900 were ex-5 q
changed by the financial agentSfor
conversion bonds, ind 81, ,25o, 900. re-
mained out. The 100000 bonds that
were returned had passed through the
hands Of the financial; al;agent. While
in his possession coupons might have
been taken of, oySthey might have
been applied forthe payment Of the
interest, and so aotinto the hands Of
the public. In Ills last way, they
might have been presented to the
State treasury honestly for funding.
[ was sued upon asoiyil process for
s45o,ooo in 1S74,.the allegation being
that had funded that amount illegal
ly in the treasury. aA Judgment was
rendered against; me for s75, 900; but
this, you will bearin mind, was the
judgment on q teaehnical wrong ina
civil suit. AS soon u.s. the sccoly 7 erssion
act was passed :pyefy large number
Of these bonds we2 2esprinted. Cfthese
bonds s1,2Oo,ooo1 were fissue ed strictly,
i'll accordance u i u Tho sproyision of
- all
put on the market in m arbitrary
manner. For all that, the money ol.
taincd by the State on these bonds by
Frank Moses wns issued by ME, y.s
treasurer, in accordance with law.
ENORMOUS ISSUES Or BONDS.
Now the s3,2OO,0OO which the
Legislature authorized the Goyornor
10 raise by the sale Of bonds had to he
obtained ut sacrifice. The bonds Of
the State would not sell at anything
like par. In fact, when first issued,
we were obliged 10 dispose of them for
twenty cents on dollar. When the
acts passed the Legislature, I under
stood, and I think it was generally
understood by all members of the
Legislature except those let into the
secret, that s3,200,OOO in bonds at par
was the total sum authorized by the
acts. When the acts were passed,
however, Cham BERLIN and Kimpton
pointed out what vas tho literal in
depreciation Of the acts. They con
tended that bonds could be sold at
any sacrifice to obtain the sum in
cash Of s3,2OO,0OO. Relying on
Chamberlain as the legal adviser Of
the board, Scott and 1 consented to
the issue Of the amount of bonds ne
cessary to raise the authorized sum.
llo found, however, that the ordinary
onds Of the State were not taken
readily when put on the market.
Bankers require the hest security pos
sible, before they will invest their
money in the purchase Of bonds, that
the bonds are legally issued. This
point was involved in some doubt, and
when they discovered that there we're
more than million of bonds issued
under the act to provide for the pay
mcnt Of the public debt, they refused
to deal these bonds, or rather to take
them in any way. In this exigency
recourse was had to The act authoriz-
ing the issue of conversion bonds. The
act provides that these bonds shall b @
issued for the redemption of other
State securities, but it was tend ed
by Chamberlain mud Kimpton, that
these bonds could also be issued d.