The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1893-11-29
THE STATE POCKETB00K.

THE STATE PUCkElDUUA.
ANNUAL REPORT OF STATE TREAS
URER BATES.
Matters Which Win Interest Every Well
Informed C;t'zeu-The State Bonds, the
Borrowing of Money, and the Flnauciai
Part of the Dispenssry.
COLUMBIA, S. G, Nov. 22.-The most
important and interesting report OF
any State officer is that OF Treasurer
Bates, given to the press yesterday al
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 giveL fur
nish the first accurate idea of the result
of the scheme, financially. treasurer
Bates says: -,
"The State is to be congratulated
upon the sue ess that attended the et-
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 mlsrule
from 1868 to 1876, and the baneful pres
ence of So 800 600 of fraudulent conver-
sion bonds OF 1869. beariug the great
seal of the State, still listed upon the
New York Stock Exchange, and the
prevalence Of the severest monetary
panic this country has experienced In
uany years, South Carolina refunded
her brown coDsol debt maturing Feb.
ruarY 1. 1893, by placing 2O-4O.year
and onehalf per cent. bonds at par.
The details of this transaction are set
forth in tables numbered Nos. IL 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 remained there
some weeks trying to induce capital
lists to take the issue 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 the State of the
fraudulent bonds and demanded such
q recognition as the price the State
must pay in order to secure their aid.
The principal holders of the brown
consols were residents of our State,
and the prevailing rate of interest here
being high, these holders naturally
preferred having their consols contin-
ed at six per cent. rather than change
their investments to four or four and
one.half per cent. bonds.
"These were some Of the difficulties
that had to De overcome.
"After leaving New FORK we secured
the services of Mr.. Golden Rhind, of
Augusta. Ga, who furnished the best
testimonials and impressed US with his
high character and business ability.
He was authorized to open negotia-
tions for funding the debt of the State
and inviting propositions for four per
cent. and for four and one.half per
cent. bonds. During the month of No
yember MIR. Rhind submitted letter
in the nature of q proposition from Mr..
French, then president Of the Manhat-
tan Trust Company on the part OF said
company and its associates. 1t was
upon this proposition "a a 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
iu the ManhaC,a an Trust Company $3.50,
600 by December 1, 1892; S5,OOO,0O0 by
January 1st, 1893, and any balance
that might be Needed by February lst.
1898. 1t was our expectation and hope
that this would be definitely arranged,
an6 with this ready cash we would re-
deem the brown consols in anticipa
ton of their maturity and have for the
State all unmdtured Interest on the
consols. But, unfortunately, bafore the
act of 1892 was passed by the Legisla-
ture. Mr.. French became i'll aud soon
afterwards died, and pending his ILL
ness two of his strongest associates
withdrew, having brcome 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
the associates Of MIR. French, succeed
ed IN organizing syndicate of New
York, Baltimore, Richmond, Charles
ton aud other capitalists, OF which the
Baltimore Trust and Guarantee Com
pany, Robert G. Davidson, president,
was the agent. This syndicate, after
much correspondence and delay. enter
ed into written contract with the
State on the 18th day of January, 1858,
to take 100000 of the $5250,O 600 four
and one. half per cent. bonds, ,wnich the
State proposed to sell at "par fat, and
were allowed an option of the remain
ing S3,25O,OOO until April 1st, 1893, at
the sane pllce. On the TN Ut March,
1893, the syndicate exercised the option
and an amended contract was made,
binding them to take the entire issue.
Both the original and the amended
contracts are ON file in this Office. 1t Is
proper to state in this connection that
MIR. Rhlnd was to look to the syndi-
cate which he organized for compensa.
ton 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 ques.
ton 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 hearing was had be-
fore the Supreme Court on May 9th
and on May 18th decision was render
ed, in which the Supreme Court unani-
mously sustained the contract. AS can
be readily imagined the difficulties and
dangers that attended the ful6llment