The Anderson intelligencer. [volume] (Anderson Court House, S.C.) 1860-1914, 1878-02-14
designated as "issued under actapproved

August 26, 1863"
r. K. Scott, who signed these bonds
as Governor, in his testimony before a
committee appointed to ascertain what
bonds of the State were pledged by the
Financial Agent Of the State as collateral
security for State loans, said:
at was not my intention that more
than 81, 10000 OF these bonds should be
out, but the whole S2,0O0,000 did 60 out,
and did become g. part of the public
debt; $500,000 OF them were returned,
and l destroyed them in the presence of
Mr.. Parker, D. H. Chamberlain, DR..
Neagle and others. The $500,000 de-
stroyed had been replaced by conversion
bonds" Reports and Resolutions 1S745,
page TAI.
Before the same committee, N. G..
Parker, who was State Treasurer at the
time these bonds were issued, in answer
to the question, how many bonds were
issued under the act for payment of in
terest on the public debt, said: cat first,
Sl,0O0,000; afterwards another 81 ,O0O,-
000."
His testimony before this commission,
together with the evidence developed in
the examination of the vouchers for con-
version and consolidation bonds, leaves
no room for doubt, that under the act to
authorize q loan to pay interest on the
public debt, $2,0O0,000 of bonds were is.
sued, being s1,O00,0OO in excess of the
amount authorized by the act.
In addition to the Illegally of the Sec
ond issue of these bonds, the testimony
indicates that che element of fraud en-
tered into the transaction.
| In his testimony before the committee
already referred.to, D. H. Chamberlain,
Attorney General and member of the
Financial Board at the time these bonds
were issued, in answer to q question con-
cerning over-issues of bonds being dis:
cussed by the Financial Board, says:
II remember the question was raised
as to issuing the additional bonds for the
relief of the treasury, and for the pay
ment of the interest on the public debt,
but I think the question was raised be;
cause if the numbers of the bonds issued
showed larger amount than 81 900. 900,
it would injure:their credit in the mar
ket.n
To deceive the public, therefore, the
second issue of bonds were numbered
from l to 1000, thus duplicating the
issue under the act, the only distinguish.
ing feature being that upon the first
issue were endorsed the words "loan to
pay interest. on the public debt" while
the endorsement upon the second issue
was "issued under act August 26, 1865"
The evidence of N. G: Parker, accom-
panying this report, shows that the fraud
was detected by party in New York
becoming possessed of bonds of both
issues, having the same number: The
fraud being exposed, the $500, 900 since
reported as destroyed and $4,000, since
cancelled and remaining in the treasury,
were somehow redeemed and retired,
leaving S450,000 of the first issue, as well
as the whole of the second issue, out
standing. The commission are of opin-
ion that the whole of the second issue
were fraudilently issued and placed
upon the market without authority of
law, and were null and void ab initio. I
Nor can there be any pretense that the
second issue was in any wise necessary
for the purposes of the act.
In his message to the General Assem-
bly,, on the 7th July, 1868, Governor Orr
stated the debt due by the State on Oc-
tober l, 1867, was IS, 529, $3.50, of which
IS, ,407 ,2l5.23 was principal and S116,-
361.33 was interest. The Comptroller
General estimated the amount of interest
due on October /, 1868, was S434, 1882.
As the act was passed August g.. 1868, it
is to be assumed that its provisions did
not extend to the payment cfinterest be.
coming due after October /, 1868, the
last day on which any interest became
due for that fiscal year; and S434, ,79l 80
must, therefore, be considered the
amount of interest proposed to be paid
by moneys raised under the act.
How much of this 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 impossible to determine with
certainty, but the reports and records Of
the Treasurer throw enough light on the
matter to afford o practical solution of it.
1st. The recapitulation Of expenditures
at the State treasury for the fiscal year
ending October 81, 1869, shows the
amount of interest paid at the treasury
during that fiscal year on account of in
terest accrued since the same was last
funded was S529, ,269.12; but the amount
actually paid at the treasury was 1882, :
52462, the treasurer having credited the
Financial Agent with S196,714.50 of cou-
pons paid at the Financial Agency as so
much cash, and then credited himself
with the payment Of that additional
amount of coupons.
| Of this amount of $685., ,53462, as ap-
pears from the records of the Treasurer,
b224, ,SOS.62; was paid on account of in
terest on stock accrued since the same
was last funded to October 81, 1869, ex-
elusive of what was paid for coupons on
bonds which matured during the same
period; and it will appear from the
statement designated as schedule 8, ap-
pended hereto and made part of this
report, that S12C, 1926 96 of it was paid on
account of interest accrued since the
same was last funded up to October J.,
1868.
I'd. No part of this $120,925.96 was
paid by the State Treasurer out of the
proceeds of the ssle of interest on the
public debt bonds sent to the Financial
Agent. By schedule. 4, appended hereto,
and made part of this report, it will ap-
pear not only that no proceeds of the
sale of such bonds had been received
| from the Financial Agent-none OF
them having yet even been reported as
sold-but that the Financial Agent had
not yet fully paid over tue proceeds of
the sales of other bonds which had been
sent to him and which he had reported
the sale of.
Sd. As no part of This $12O, ,925.96 was
paid out of the proceeds of the sale OF
interest on the public debt bonds, and as
there WAS no other sufficient source ex.
:ept the taxes collected under the act OF
March 26, 1869, from which it could be
paid, and as the report of the State Treas.
lrer shows that the amounts received
from the said taxes during the months