The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-02-14
designatssdd ed as s ISSUED !. under act approved


August % 90, 1eess.n .f.g tAi1
X. z. Scott, who signed these bonds
rs Governor, in his Testimony. hefo-, 4
committee appointed to ascertain what
bonds of the State were pledp "a by tho
Financial Agent of the State as collateral
security for State loans, said. ,'i,''.',
at was not nv intention that mora
than 81. .000, 900 oftheae bonds should be
out, but ths whole g, 600 900 did 70 ont,
ana did become q part of the public
debt; $3OO,000 of them were returned,
and destroyed them in the presence OF
Mr. Parker, ID. a.! Chamberiainy nr.
Neagle aud Others. The 100000 de-
stroyed had been replaced by conversion
bonds.h Reports and Resolutions l874-5,
page TAI. ~ #T- -
Before tho same committee, NJ. q.
farkcr, VINO was State Treasurer at the
time these bouds were issued, In answer
to the question, how many bonds we're
issued under the act for payment of in
terest on the public debt, said: cat first,
81 ,O00, goo; afterwards another 81 900, /.
000.n y6r So Z, 80 -
His testimony before this commission.
together with the evidence developed In
tbs examination of the vouchers for con-
version aud consolidation bonds, leaves
TO room for douSs, that under the act tu
authorize o loan TO pay interest cn the
public debt, $4,000, 900 of bonds were is-
sued, being Sl,000,G00 in excess of the
amount authorized by the act. ,.al
In addition to the illegality of the sec.
ond issue of these bonds, the testimony
indicates that the element of fraud en-
tered into the transaction. 3i ~
In his testimony before the committee
already referredto, D. III. Chamberlain.
Attorney General and member Of che
Financial Board at the time these bonds
were Issued, In answer to question con-
corning over.issues of bonds being dis:
cussed by the Financial Board, says:
II remember tho question was raised
az TO issuing the additional bonds for the
RELIEF, OF the treasury, and for the pay.
ment or the interest on the public debt,
but / think the question was raised be-.
cause If henumbera of the bonds issued
ahowed o larger amount than 81, GOO. 900.
1t would injursitheir credit in the mari
ket." 8 ~, |;
TO deceive the public, therefore. the
gecond Issue of bonds were numbered
from / 10 1000, thus duplicating the
Issue under the act, the only distiuguish-
ing featcre being that upon che frat
issue were endorsed the words ''loan I'd
pay interess2on the public debt" while
the endorsement upon the second issue
was ".issued u1dsf act August 28, 1852
The evidence of N. G. Parker. accom-.
panying this report, shows that the fraud
was detected by a.party In New York
becoming possessed Of bonds of both
issues, having the samo number: Tha
fraud being eIpoDed, the $500, 600 since
reported as destroyed and $50, 900, since
cancelled and remaining in the treasury,
were somehow redeemed and retired,
leaving Ss50, $50 OF the first issue, as well
as the whole Of the second issue, out.
atanding. The commission are of fopin.
ion that the wSJle of che second issue
were fraudulently Issued and placed
upon the market without authority Of
law, and were nultand void d5 initia.
n Nor can there DO any pretense that the
second issue was in any wise necessary
for the purposes of the act. oNi
Ia his mesaaga to the <tenefat Aeaeml
bly,, on the 7th July, 1868, Governor Orr
stated the debt due by the State on Oc.
tober !, 1867, was Sc, ,523, ,576.60, of which
Sc, ,407 ,2l5.23 was principal and. $il8,!
66l.33 was interest. The Comptroller
General Estimated the amount of Interest
due On October ]. 1888. =as .s:. 80: s Sc, So
As the act was passed August 26,. 1858, il
Is to be assumed that its provisions did
not extend tc the payment cfintereat be.
coming due after October i, 1868, the
last day on which any interest became
due for that fiscal year; aG6 S434a3l .52
must, therefore, be . considered the
amount of interest proposed to be paid
by moneys raised under the act. ,yl 5s.i
How much OF th;s Interest was paid
out of the taxes Collected under the act
to raise supplies for the year commencing
IN October, 1868, approved March %,
1863, it is impossibIe to determine with
certainty, but the reports and records OF
the Treasurer thsov enough light on the
matter to afford q practical solution oft
Ist. The recapitnlation Of expenditures
ct tho State TREASURY for the fisef,i year
ending October 81, 1869, shows Ithe
emcuht OF interest paid at the treasury
during that fiscal year e: :.cccooi;iitt Of Id. III
tefeSt accrued since the same was last
funded was S529, ,269.1 but the amount
actually paid ct the treasury wac 1892.
624.62, the treasurer having credited the
Financial Agent with $19S,714.50 OF con.
pons paid &c the Financial Agency AZ 40
much cash. and then credited himself
with the payment Of that additional
amount of coupons. iaai sSitiii5s i.iat
z OF this anount of $685., $500. as ap.
peays from the records Of the Treasurer,
1921, sos .62' was paid on account Of In.
terest ca stock accrued sinee the same
was Last funded to October 81, 1859, ex-
elusive ofWhat was, paid for coupons I'd
bonds which matnEed during the Same
period; and ~ viii. appeaF from the
statement designated as schedule 8. bpi
pended hereto and iaade. n part Of this
report, that $120, 925. SO of 1t was paid on
account of, interest accrued since the
1868. gis7ti- ~ .i999l' !
I'd. No part of this SI2o, ,925.s6 was
paid by the State Treasurer out Of the
proceeds of the sale Of interest on tfis
public debt bonds sent to the Financial
Agent. BY schedule !, appsGded hereto,
and made q part OF this report, itYillap-
F5ST moi uniy tnat no proceeds of the
sale OF such honda had been Teceired
from the Financial Agent-nons Of
them having yet even been reported as
sold-but that the Financial Agent aaii
not yet fully paid over tlie proceeds OF
81. -. ez.e- = % o...o. SJiiIs 1iliCn nae been
sent to him and which he had reported
the sale Of y 81 .Iali -sa 8iltia
Sd. AS no part ofthia $40, ,925.9s was
paid ons of the proceeds OF the sale of
interest on the public debt bonds, and as
there was no other sufficient source ex.
cept the taxes collected under tho act Of
March %, 1853. from which it cotild be
paid, aud as the report Of the State Treas,
uref shows that the amounts received
frru, IN n haf1 "a ~ % ft,r No. tba vs5n4he