The Union times. [volume] (Union, S.C.) 1894-1918, 1896-07-03

1872, the Office is restricted to tho sys-
sem of exchanging the nea 4 per cent.
Cor tho brown couso,s. Bat iittlo
progress has been made in exchanging.
Only $29. 9.39G.T3 o: now per cents
have been exchanged for m equal
amount OF brown consols. Under tho
rigid requirement of the act, | am
afraid not many exchanges VII! be
affected"
Tho Legislature amended the act in
December 1891, ut my suggestion, and
provided for the payment of commits
zion for placing tho new bonds if it
should bo necessary. However, We
were still restricted to issue bonds
hoaring only per cent. interest and
Lot allowed to sell them ut less than
pmr.
In my annual report OF October 81
1892, stated rs follows: ''Tho hold
ers of tho brown consuls have not
shown their Willingness to cx-
exchange them for tho new bonds; but
seem to prefer to await their maturity
be orc deciding what they will do. Ne.
gotia!io-S Tor placing new bonds have
iot yet been completed"
During visit TO Cha,lcst prior
to October 1892, | was told by more
than ono prominent hundholdnr md
"nahrlcf III tnaj city, whose ntmcs /
can give IL necessary, that 1T was use
less Tor the Stntc to attempt to refund
III bonds bearing less than ; Ter cent.
interest. One of these gentlemen
went No far ns to sny that inusnucl, ~
the Stntc had, under the consolidation
act of 1873, settled with the holders of
her bonds ut 30 cents on the dollar.
she ought not to expect her bondhold-
crS I" exchange their maturing bonds
i"r other thnu per cent. bonds.
ME ~ Now York prior to October
s"92, ! was assured by II prur.,incn.
d""!'r i'll South Carolina bonds that
thu state could not float u bond bear
ing less than . per cent. interest and
c"uld not even float II per cent. bond
unless sh" mndo some settlement o! the
non -fundamentnhlu bonds listed on
the stock exchange, amounting to So
H61,oUO nnd OTHER bonds in which there
was invnlidity.
Eopic" of our rcfundinG net and the
beat showing OF our finances that
could hc mnho were presented in per-
son or through the mail 10 such houses
rs DrcXcl Morgan y Co., but without
result
We have been criticised for allowing
ono man IN exclusive option or the
bonds to be issued. We were led to
the adoption of this plan ON account
"i the bad condition the States credit
WAS III, and we had in mind tho ex-
rrricncc pf Treasurer Bnmberg when
he undertook to refund the de-
iiclcncy bonds, ds,nmountingt 60 onlySiOO,-
700. Some OF the newspapers noticed
his advertisement, savagcly attacked
the credit of the State, both in
Europe md in the United States. and
ridlcnlcd the invitation for bids for
South Caroline bonds. Other parties
wrote him insulting letters. We knew
also there were dissat:Siicd holders of
invalid State bonds and other profcsscd
creditors of the State. who wore aware
thnt the State was approaching iinmn-
rinl crisis. They knew that almost her
entire bonded debt and on which she
was paying per cent. interest was
nbont TO mature anu pracrlcnny
State had not dollar with which to
pay it, and they We're planning TO take
advantages of the situation to force the
state to settle their claims. We were
Informed that other States and commu-
mites ilontrd bonds ulvnutagcouslv
through brokers or promoters. There
fore, on February 20, lS92, the gCv-
"rnor and myself, in tho exercise Of the
discretion allowed us in the rcfunding
act, made nn agreement with Mr. J c.