The Pickens sentinel. [volume] (Pickens, S.C.) 1871-1903, 1893-11-30
THE STATE POCKETBOOK.
ANNUAL REPORT OF STATE TREAS
URER BATES.

URER BATES.
Matters Wh'ch WIN Interest Every Well
Informed Cit,zen-The State B onds, the
Borrowing OF Money, and the Financial
Part OF the DispensaIy
COLUMBIA,S c., Nov. 22.-The most
important and interesting report of
Bates, given to the press yesterday af.
ternOon. Every citiZen who desires to
keep posted on the affairs of his State
should read it. There is not line of
the report which will not be Of inter
est. The Dispensary figures given fur
nish the first accurate idea Of the result
Of the scheme, financially. Treasurer
Bates says:
"The State is to be congratulated
upon the success that attended the ef-
forts of the Governor and Treasurer to
carry out the act of December, 1892,
providing for the redemption of the
Brown consol debt. Notwithstanding
the injury done to the credit of the
State during the dark days of misrule
from 1868 to 1876, and the baneful pres
ence of Sc, ,960 900 of fraudulent CONVEX
sion bonds OF 1869, beariug the great
New York Stock Exchange, and the
prevalence of the severest monetary
panic this country has experienced in
lnany years, South Carolina refunded
her brown consol debt maturing Feb.
ruarY 1. 1893. by placing 2O.40 year
and One-haIt per cent. bonds at par.
The details of this transaction are set
forth in tables numbered Nos. II and
IL.
'In order that the public may be
more fully informed as to the work, l
submit the following statement:
During the month of October, 1892,
the Governor and Treasurer visited
New York city and rem lined there
some weeks trying to induce capital
lists to take the is5ue Of four per cent.
bonds then provided for. We did not
succeed in our efforts Some Of these
capitalists saw their opportunity to
force q recognition by thu State of the
fraudulent bonds and demanded such
recognition as the price the State
must pay in order to secure their aid
The principal holders OF the brown
consnlS were residents of our State.
and the prevailing rate of interest here
being hign, these holders naturally
preferred h wing their consols contin
ed at six per cent rather thai change
Jfl-iT investments to four or four and
one-half per cent. bonds
"Fh. SO were some Of the difficulties
that had To Ue overcome.
"AtIer leaving Nav / Ork we secured
the services of Mr. Golden Rhini, of
Augus'a, Ga, who furnisned thA best
testimonials and impressed us with his
high character and business ability.
He was authorized to open negotid-
tionS for ming che debt Of the State
and inviting propositions for four per
cent and for four and one-halt Der
cent. bonds. During the month Of No
vemher Mr.. Rhind submitted letter
in the nature of a proposition from Mr.
French, then president of the Manhat-
tan Trust Company IN the part of said
company and its associates. 1t was
upon this proposition as basis that
the refunding act of 1892 was intro
duced into the Legislature. They pro-
posed to take four and one-half per
cent. 2O.4O year bonds at par, and
would place to the credit of the State
IN the Mauhatt an Trust Company $3.50,
600 by December 1, 1892; $5,OO0OOO by
January 1st, 1893, and any balance
that might be needed by February 1st,
1893. 1t was our expectation and hope
that this would be definitely arranged,
and with this ready cash we would re-
deem the brown cOnsols in anticipa-
tion of their maturity and have for the
State all unmatured interest on the
consols. But, unfortunately, before the
act of 1892 was passed by the Legisla-
ture, Mr.. French became i'll and soon
afterwards died, and pending his ILL.,
ness two Of his strongest associates
withdrew, having become alarmed at
the unusual shipments of gold from
the United States to Europe.
However, Mr.. Rhind, continued his
efforts, and assisted by one or more Of Of
the associates Of Mr.. French, succeed
ed In organizing a syndicate of New
York, Baltimore, Richmond, Charles
ton and other capitalists, of which the
Baltimore Trust and Guarantee Com
pany. Robert 9. Davidson, president,
was the agent. This syndicate, after
much correspondence and delay, enter.
ed into written contract with the
State on the 10Th day of January, 1853
to take $2,00O,O00 of the 50, 5,25O,OOO four
and one.half per cent. bonds, which the
Stale proposed to sell at "par fat, and
we're allowed an option of the remain
Ing $3,260,0OO until April 1st, 1893, at
the same plice. On the 7th of March,
1893, the syndicate exercised the option
and an amended contract was made,
DluulDB Inelu 10 Jake Jn6 entlre issue.
Both the original and the amended
contracts are on file in this Office. 1t is
proper to state in this connection that
Mr.. Rhlnd was to look to the syndi.
cate which he organized for compensa
tion for his services. The State not
paying him anything except $3.50 in
one instance to bear the expenses of a
special trip to New York on PRESSING
business for the State in the bond
matter.
"Early in May the force of the none.
tary panic was plainly felt, and 6 aues
tion arose as to the legality of the con
tract the State had made with the syn
dicate. This question had to be settled
because it threw cloud over the title
of the bonds. A hear ng vas had be-
fore the Supreme Court on May 9th
and on May 18Th decision WAS render.
ed, In which the Supre me Court unaDi.
mouSly sustained the cont ract. AS can
be readily Imagined the difficulties and
dangers that ATTENDED the fuIillmeut
or the contract caused much anxiety TO
those who represented The State In
such responsible work.
ut will be seen th-re are still out
standing brown conSols to the amount