The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1877-09-19

CltllCllSy uii StOo,Ooo " Viz pulClifoC
of lands under the Land Commission !;
81, POO, 900 was called for III addition to
provide for the redemption of tho bills of
the State Bank. These bills have not yet
been redeemed, but are floating about in
considerable quantities, though l do not
believe any one knows how many are in
existence. In this session, also, the IA
nous conversion act was passed. This
act authorized the issue of bonds to take
up all outstanding bonded and stock in
d%ebtedness 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 DO to give uni.
formity and consolidation to all classes OF
securities. All these acts, I repeat, were
presented by the Financial Agent, Kimp-
ton, and urged upon the Financial Board
by him as a necessity. They were never
prepared by Scott or myself, but always
by Chamberlain and Kimpton. Cham.
berlain used to say to mo that Kilnptol
declared these measures to be necessary,
and he supposed that they were so.
Under the act authorizing the Governor
to borrow $1,000, 600 to pay the interest
upon the public debt, 81, 600, 900 of bonds
were issued: $500, 900 of these bonds were
returned in presence of the Financial
Board and others, S250,0OO were excIian-
ged by the Financial Agent for CONVEX
sion bonds; $780, 900 remained out.
The $500, 900 of bonds that were returned
had passed through the hands Of the FL
nancial Agent. While in his possession
coupons might have been taken off, or
they might have beer applied for the pay
ment Of interest, aid so got into the
hands of the public. In this last way
they might have been presented to the
State Treasury honestly for funding. I
was sued upon a civil process for $3.50, 900,
in 1874, the allegation being that I had
funded that amount illegally in the Treas
ury. A judgment was rendered against
mind, was the Judgment OH a technical
wrong in civil suit.
AS soon as the conversion act was
passed a very large number of these
bonds were printed. OF these bonds
81, 200, 600 were issued strictly in accord
ance with the provision of the act, but all
others issued wore put on the market in
an arbitrary manner. For all that, the
money obtained by the sale Of these
bonds, which were outstanding until re.
pudiatcd by Frank Moses, was used by
inc, as Treasurer, in accordance will
law.
ENORMOUS ISSUES OF BONDS.
Now, the SO, 200, 600 which the Legisla-
ture authorized the Governor to raise by
the sale of bonds had to be obtained at 8
sacrifice. Tho bonds Of the State would
not sell at anything like par. In fact
when first issued we were Obliged to dis.
pose of them for twenty cents on a dollar.
When the acts passed the Legislature l
understood, and 1 think it was generally
understood by all members of the Legis.
lature except those let into the secret,
that $1,000, 900 in bonds at par was the
total sum authorized by the acts. When
the acts were passed, however, Chamber
lain and kimpton pointed out what was
the literal interpretations of the acts.
They commended that bonds could be sold
ut any sacrifice to obtain the sum in cash
Of $780, 600. Relying o 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. We found, however, that the Or
binary bonds of the State were not taken
readily when put on the market. Ban
kers require the best security possible be-
fore they will invest their money in the
purchase of bonds that the bonds are le-
gally issued. This point was involved in
some doubt, and when they also discov-
cred that there were more than a million
Of bonds issued under the act to provide
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 recourse WIS had to the act
authorizing the issue of conversion bonds.
The act provides that these bonds shall be Is
sued for the redemption of other State securi.
ties, but It was commended by Chamberlain
and Kimpton that these bonds could also be
issued directly-thnt Is, they could be put on
the market and sold like ordinary bonds, and
the proceeds devoted to the redemption OF
expenses. Scotland I were prevailed upon by
Chamberlain and kinlpton to countenancc
this issue of bonds. When, therefore, these
conversion bonds were put directly on the
market they were sold quite readily, for bank
crs had no means of knowing how many were
issued IN one year. SO they secured these
bonds as collateral security and purchased
them in preference to the others. Perhaps
this was not exactly fair, but we went on the
principle that outsiders were bound to look
out for themselves. The object of the Finan.
cial Board in this was to secure money at the
least cost to the State, and there was no inten.
ton to defraud the State thereby. During the
four years In which we were in office the
bonded debt OF the State was increased about
SlO,01,00. All outstanding claims were pro
vidcd for and wiped out, SO that at the end of
the four years the only outstanding debt vas
for the current expenses q the State during
This board has been censurcd for causing
these acts to be passed: Who drew up and
presented the act? Chamberlain drew up
every one Of them md Kimpton presented
them. The proposition for the issue of con-
version bonds directly was made by Chamber
lain, Hooked upon this issue Us u necessity.
1 look upon 1t now as l did then. My first OBJ
position to the issue OF bonds in the c~onstitu-
tional convention was due to the belief that
out this Issue by taxation. When / found,
however, that the State expenses were OK.
travagant and demands were made upon the
treasury by law for money, I acquicsced In
the measures proposed by Chamberlain and
kimpton.
a SERIOUS CHARGE AGAINST EX-GOVERNOR
MOSES.
There was n terrible increase Of expendi-
ture ut each succeeding session of the Lcgisla-
ture. Frank Moses was in thec chair, and I
am Nh told Dy trustworthy persons that he has
dishonesty, though / am sure that It was O
much larger sum. I believe that three or
four millions of dollars were spent in excess
11 ahs ne Of tEs fTxgfnsss for aur the
these four years. Both Senate and House
were responsible for this. The first President
Of the Senate was a pretty good man, Boozer.
elected a Judge and went out during the first
session.. Ransier, q colored man, took his
place: He was equal to the occasion. Corbin
Boozer, the Lieutentenant Governor, was
absent. | paid Corbin O good deal EFF
money. Still he held q large number Of Off
ces and received large salaries and regular
perquisites therefrom. know nothing there
fore, to inculpatc him.
l had no doubt that a number of charges
brought against the treasury were improperly
passed by the Legislature. In particular,
there were q number OF $1,000 claims present.
ed which thought were outrageous, certifi-
Gates issued by those who purchased Senators
and Representatives. The certificates were
properly authorized, however, and | had to
to pay them. Suppose / had refused TO hon
or them, what would have been the result?
Why, l should be kicked ont for not doing
my duty as Treasurer. There was too much
influence brought to bear against me. If I
had stood out aloneit would not have made
any difference. Why I have been to Frank
Moses with tears in my eyes, and said to him.:
"You will have no money at all In the treasu-
ry If you go on In this way. Frank Moses
would only look up and laugh. "Talk about
these Republican rnformcrs," he would say;
"you never heard me say anything about re-
FORM" "No," said I, "Ineyer did"
I went out Of office on October 81, 1872.
Scott went out the same time. md Moses
came in as Governor. Samuel Melton sue
cecdcd Chamberlain rs ACKNOWLEDGEMENT,