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

and he represented that it would raise the
value of bonds materially and enhance the
credit of the State. In this view he was
supported by Chamberlain. Here NAV
say that ! never knew financial act to pass
the Legislature which was not proposed as
bill by Kimpton and sanctioned by Cham
pcrlain. His bills were always passed as
presented. In regard to this particular bill
1t SHOULD be added that the interest deman
ded was paid in gold until the winter 1869
~, 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
gold In p.te.ponrseyef lS63,and 1863 tho
[Negislature passed acts to provide for the
redemption at par of all floating debts out
standing. All these financial measures all
thorizing the issue of bonds were suscepti-
BILE 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 81 900, Goo for the pay
ment OF interest on the public debt at 6 per
cent; 81 100000 for the relief of the trca-
sury at per cent; 100000 for the re.
demption of Governor Orr's currency and
S7OO, 900 for the purchase of lands under
the Land Commission; 81 100000 was call.
ed for in addition to provide for the redemp-
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.
debtedness of every kind, and authorized
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, repeat, was represented by
the Financial Agent, Kimpton, and urged
upon the Financial Board by him as ne
cessity. 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 so.
Under the act authorizing the Governor
to borrow 81 100000 to pay the interest
upon the public debt, $2,0OO,OOO of bonds
were issued ; 100000 of these bonds were
returned in presence of the Financial Board
and others $3.50, 900 were exchanged by
the Financial Agent for conversion bonds
81 ,250, 900 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 a 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 81 200, 600 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
salc 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 go, 200, 900 which the Legisla-
ture authorized the Governor to rlise by the
sale Of bonds had to be obtained at 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
tho n ofo no caod ,ba T,oiotofura T,nJorstool