Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1877-09-20

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and stock indebtedness of every kind, and au
thorized, furthermore, all holders of stock OF
any kind of government securities to convert
them into these bonds The object Of this act
was declared to be to give uniformity and con-
solidation to all classes of securities. All
these acts, I repeat, were presented by the t.
nancial agent, Kimpton, and urged upon the
financial board by him as necessity. They
we're never prepared by Scott or myself, but
always BY Chamberlain and Kimpton. Cham.
berlain used to say to me that Kimpton de-
clared these measures to be necessary, and be
supposed that they were so. Under the act
authorizing the Governor to borrow $1,000.
600 to pay the interest upon the public debts,
$2,0OO,00 of bonds were issued. Five hun
dred thousand dollars of these bonds we're re.
turned and bonded in presence of the financial
board and others, $25O,000 were exchanged
by the financial agent for conversion bonds,
and 81, ,250, 900 remained out. The $500,00O
bonds that we're returned had passed through
the hands of the financial agent. While in
his possession coupons might have been taken
of, or they might have been applied to the
payment Of the interest, and 80 got into the
hands of the public. In this last way they
might have been presented to the State treas.
ury honestly for funding. I was sued upon a
civil process for $45O,O0O in 1874, the allega-
ton being that had funded that amount il.
legally in the treasury. Ajudgment was rem.
dered against me for $4,000; but this, you
will bear in mind, was the judgment on q
technical wrong in civil suit. As soon az
the conversion act was passed, very large
number of these bonds were printed. Ofthese
bonds 81, 100000 were issued strictly in &C.
cordance with the provision of the act, but all
others issued were put on the market in an ar
bitrary manner. For all that, the money OBJ
tanned by the State on these bonds by Frank
Moses, was issued by me, as treasurer, in &C
cordance with law.
ENORMOUS ISSUES OF BONDS. ~
Now the $3,200000 which the Legislature
authorized the Governor to raise by the sale
of bonds had to be obtained at sacrifice.
The bonds of the State would not sell at any
thing 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 So, 100000 in bonds at par was the total
sum authorized by the acts. When the acts
were passed, however, Chamberlain and
Kimpton pointed out what was the literal in.
depreciation of the acts. They contended
that bonds could be sold at any sacrifice to
obtain the sum in cash of $3,2OO,0O0. Rely
ing on Chamberlain as the legal adviser of
the board, Scott and consented to the issue
of the amount of bonds necessary to raise the
authorized sum. He found, however, that the
ordinary bonds of the State were not taken
readily when put on the market Bankers
require the best security possible, 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 were more than a
million of bonds issued under the act to pro-
vide for the payment of the public debt, they
refused to deal in these bonds, or rather to
take them in any way. In this exigency re.
course was had to the act authorizing the issue
of conversion bonds. The act provides that
these bonds shall be issued for the redemption
of other State securities, but it was contended
by hamberlain and Kimpton that these
bonds could also be issued directly, that is,
they could be put on the market and sold like
ordinary bonds, and the proceeds devoted to
the redemption of outstanding claims and to
meet other State expenses. Scott and l we're
prevailed upon by Chamberlain and Kimpton
to countenance this issue of bonds. When,
therefore, these conversion bonds we're put di.
rectly on the market, they we're sold quite
readily, for brokers had no means of knowing
how many were issued, or could be issued, in
one year. So they secured these bonds as col.
lateral security, and purchased them in pre-.
ference to the others. Perhaps this was not
exactly fair, but we went on the principle that
outsiders we're bound to look out for them
selves. The object of the financial board in
this was to secure money at the least cost to
the State, and there was no intention to de-
fraud the State thereby.
DEBT INCREASED $40, ,OO0, 900 IN FOUR YEARS.
During the four years in which we were in
office, the bonded debt was increased about
s1O,OOO,OOO. All outstanding claims were
provided for and wiped out, so that at the end
of the four years the only outstanding debt
was for the current expenses of the State dur
ing 1872. This board has been censured for
causing these acts to be passed. Who drew
up and presented the acts? Chamberlain
drew up every one of them, and Kimpton pre-.
sented them. The proposition for the issue
of conversion bonds directly was made by
Chamberlain. looked upon this issue as
necessity. I look upon it now as did then.
My first opposition to the issue of bonds in the
Constitutional Convention was due to the be-
lief that the State expenses could be provided
for without this issue, by taxation. When l
found, however, that the State expenses were
extravagant, and demands we're made upon
the treasury by law for money, I acquiesced
in the measures proposed by Chamberlain and
Kimpton.
FRANKS OF Ex GOVERNOR MOSES
There was terrible increase of expendi'
ture at each succeeding session of the Legis
lature. Frank Moses was in the chair, and |
am told by trustworthy persons that he has
acknowledged to having signed away $780,
900 dishonesty, though am sure that it was
a much larger sum. I believe that three or
four million of dollars were spent in excess
of the necessary expenses for the meeting
of the Legislature during these four years.
Both Senate and House we're responsible for
this. The first president of the Senate was a
pretty good man, Boozer. They sooD got him
out, however. He was elected a judge and
went out during the first session. Ransier, q
colored man, took his place. He was equal
to the occasion. Corbin was president pro
tenn. of the Senate when Boozer, the Lieuten-
ant. Governor, was absent paid Corbin a
good deal of money. Still, he held large
number of Offices and received large salaries
and regular peruuisites therefrom. / know