Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1896-06-24


having already pledged himself to job
go before the convention. He is now
the bad condition the States credit
was in, and we had in mind the expe-
rience of Treasurer Bamberg when he
undertook to refund the deficiency
bonds, amounting to only $400, 900.
Some of the newspapers noticed his
advertisement, savagely attacked the
credit of the State, both in Europe
and the United States, and ridiculed
the invitations for bids for South
Carolina bonds. Other parties wrote
him insulting letters. We knew also
there were dissatisfied holders OF
invalid State bonds and other professed
creditors of the State, who were aware
that the State was approaching q
financial crisis. They knew that al.
most her entire bonded debt and on
which she was paying 6 per cent.
interest, was about to mature and
practically the State had not dollar
with which to pay it, and they were
planning to take advantage of the
situation to force the State to settle
their claims. We were informed that
other States and communities. foated
bonds advantageously through brokers
and promoters. Therefore, on Febru.
ary 20, 1892, the governor and myself,
lin the exercise of the discretion
allowed US in the refunding act, made
an agreement with Mr. j. G. Zachery,
of New York, granting him an ex-
elusive option for 80 days on the entire
issue of new 4 per cent. bonds. This
gentleman presented his testimonials
from prominent business and represen-
tative men in New York and elsewhere.
He, however, failed to secure subscrip-
tions for the bonds or contract for the
exchange and dropped the matter at
the expiration of that time.
On the 18th of May, 1892, an option
was granted to Mr.. Golden Rhind OF
Augusta, Ga, who presented letters
from prominent fnanciers in. New
York with whom he had business con-
nections and prominent business men
of our own State and Georgia. Our
agreement authorized him to pay to
parties taking the entire issue of 4 per
cent. bonds at par, a commission OF
$4,000. The statement in the New
York Times that he was offered 5 per
GEN.. on $4,000, 900 of 4 per cent. bonds
IA months prior 10 time of issue is not
true. After some months spent in New
York, Mr.. Rhind failed in his efforts
and reported that he did not think it
possible for the State to float bond
at par bearing less than At per cent.
interest, and that South Carolina 6
per cent. bonds were then selling at
95 cents on the dollar.
On September 5, 1892, Colonel Mike
Brown, of Barnwell, s. c., was gran
ted an option. The commission al
lowed in this agreement was 8 per
cent. He also failed in his efforts and
reported that a Al per cent. gold bond
could be foated at par.
During the month of October, 1892,
Governor Tillman and myself visited
New York and remained there some
weeks trying to induce capitalists to
take the issue of bonds then provided
for. We did not succeed in our ef-
forts. Governor Tillman, in an inter-
view published in the newspapers
soon after his return from this visit
from New York said:
"There is strenuous effort being
made by the holders of the old fraudu-
lent bonds to force the State in some
sort of recognition of their claim and
some of our own people in Charleston
are in conspiracy with New York
sharks who fattened upon the misfor-
tunes of our people in the reconstruc-
ton period. Owing to the virtual ces-
sation of business, produced. by the
Columbus celebration, and the feeling
of unrest and distrust which exists
because of the uncertainty as to which
party will be victorious in the coming
elections, we found capitalists unwil-
ling to make any offer which we could
accept"
The South Carolina bondholders
evidently and most naturally prefer
red to have their 6 per cent. bonds
continued, and at the session of the
legislature in 1892, an apparent effort
was made by Colonel J. G. Haskell to
have them continued four years, and
this had a very demoralizing and de-
pressing effect upon the negotiations
then pending in New York.
After our return from New York, I
urged Governor Tillman not to aban-
don all effort even for a time. IfE
public effort on our part was to be
abandoned I advised that private
effort through a broker be continued
as we had no time to lose and the dan
ger of failure was great on account of
the serious difficulties in our way.
Mr.. Rhind was confident, ifhis plans