The Laurens advertiser. (Laurens, S.C.) 1885-1973, 1891-12-01
TIE STATES FINANCES.
THE ANNUAL REPORT OF THE STATE
TREASURER.

sasth-neiehoinR the CcnsoIs---A Briel
Statement OF the States Financial Con-
ditiens
COLUMBIA, s. c., Nov. 20.-The fol.
lowing Is the annual report Of the State
treasurer to the Legislature, which
will no doGht be read with interest:
From the statements or exhibits Civ
en- in this report, an idea can be formed
Of the condition of the financial affairs
OF this State. Moo can say that they
are In an eminently satisfactory condi-
ton. The fiscal year was begun with
cash liabilities amounting to $489, 1877 .33,
and with cash assets only 677,943 90,
and with merely S3,943 to the credit of
current expenses Of the government.
Notwithstanding the facts Just stated
and the further circumstance that the
receipts from phosphate royalty fell off
sS52, $3.50, as compared with the preced-
ing year, and that some $4,000 of the
receipts of the fiscal year just closed
were applied to payment Of debts of
preceding year, fortunately we have
been able to meet every demand made
upon the Treasury. We have paid the
loan negotiated under Act OF the Leg
islature by the last Administration
amounting with interest to $5O, 500, and
also every claim against the State as it
was presented, without resorting to a
loan, except in one small instance.
A loan of $500 was obtained from tho
Central National Bank, with which to
purchase blue four and half per cent.
bonds and certificates Of stock needed
Tor purposes Of exchange, and VIII :.
purpose was technically -.IoYlued for
IN the approprim .SlUn OF $1,000 for the
pSS.rrns' or completing the consolida-
tion. 1t will he necessary for the Leg.
islature to appropriate the sum of $500
to pay this loan kindly made to the
State without interest. beg leave to
call your attention and that of the
Legislature, especially, to the fact that
timated at $271 5000 of past due inter
est alone, besides unpaid appropria-
tions as set forth above, and to the fur
ther fact that the so-called "Treasury
Reserve Fund" is practically myth.
representing for the most part debts.
and not credits of the State. The Sink
ing Fund portion of what constituted
the original Treasury Reserve Fund"
amounting to Ss46,6471S, when the Act
was passed in 1886, has since been ex-
pended, as l understand, under laws
governing the Sinking Fund in pay
ment OF warrants drawn against it by.
the Board OF Commissioners of the
Sinking Fund. The direct Tax Fund
originally to $39,24439, (the amount re,
ceived from Congress) has been reduced
to $18,453.77, by payments upon the
warrants of the Governor to parties to
whom 1t belonged under the law.
The interest on the unfunded bonds
has been reduced gradually as the fund
Ing in Brown Consols progressed, to
$92 ,S93.43, as estimated. Bul IL should,
be borne in mind that these are in a
1cS1n}iSie debts the State owes, and do not
serve in thas fnnd practically held in re-
The only aYaiIabIGeasury.
reserve fund Is to raise ace, create a
by taxation or the sale Of state SPney
ties and then hold it in reserve for the
special purposes for which it was Gre
ated. A reserve fund is really needed
to meet the large floating debt OF the
State, composed principally OF past due
but uncalled for interest, and interest
on unfunded bonds, estimated to DO
$271 ,S9O.07. besides unpaid appropria-
tions. 1t would perhaps better satisfy
the people of the State if the Lesisla-
ture would have this reserve fund in
vestigated by q competent committee.
1t is surprising that the consolidation
does not progress moro rapidly and that
the past due interest has not been
called for. Some Of it may never be
called for. However, demand is liable
to be made upon the treasury at any
time for the money, and yet 1t has been
the policy of the Legislature to ignore
the dauger and raise barely enough
money to meet the current expenses of
the State. and depend upon borrowing
to meet any such emergency. l feel it
my duty to respectfully suggest that
this is not the wisest policy, especially
at this time when 50 large part of the
State debt Is nearing maturity, and
when it is more than ever Incumbent
upon the State to see that her treasury
is provided with ample funds to pay
promptly any just claim against her.
| complied with instructions given
me i'll the Act, and had proper notices
inserted In newspapers. l also had Cir
cnlars and copies of the Act printed,
ard notice given that they could be had
upon application by parties desiring in
formation, and have sent out large
number of copies. Copies of the circu-
lars and notices are furnished with this
report. also had prepared with much
care the necessary books in which to
record all transactions under the re-
funding Act and duplicates of these
books for the offices Of Governor and
Secretary of State. An agreement was
entered into with the American Bank
Note Company, to furnish the necessary
plates and to engraye the bonds and
stock certificates as needed. | have or,
dered and paid for only three hundred
one thousand dcllar bonds, three hun.
dred five hundred dollar bonds, and tw @
hundred and fifty stock certificates. re.
serving orders for further supply as
may be required from time to time, as
refunding progresses.
Until July, 1892, the office is rest let
ed to the system of exchanging the new
four per cents for the Brown ConsOls.
But little progress has been made in
exchanging. Only $29,398.7O of nem
four per cents. have been exchanged fol
an equal amount Of Brown Consols
Under the rigid requirements Of the
Act, am afraid not many exchanges
| will be effected. Propositions were
made, If authority had been given me
to accept, might have resulted In my
exchanging one, ,faillion of these bonds
| by this time.
am not seeking responsibility, but
respectfully submit! that perhaps Z
wider discretion should be given to tn,
| Governor and Treasurer than Is al
lowed In the Act as 1t stands. In tn,
possible event Of the holders OF tn,
Brown Consols declining to make (;
voluntary exchange for the now foul
per cents, such provisions should b,
made as will insure the sale of the fOu