The watchman and southron. [volume] (Sumter, S.C.) 1881-1930, 1912-02-17
written.

l signed the letter without comparing
1t with the original draft except for
the first paragraph. 1 now find that
In copying the letter certain changes
had been made which makes the
sense different from what 1 intended
ard somewhat misleading.
II did not get an opportunity to
look over the copy OF the letter
signed till late yesterday afternoon,
az i was not only very busy at the
bank. but had to be out of my office
for two hours in the afternoon. I
learned later. however, that you had
already sent in your message to the
legislature.
'The following is a copy Of the let
ter signed by me:
Columbia. S. c., Feb. Z, 1912.
" Hon. Col L. Blease, Governor Of
South Carolina. Columbia, S. c.
" My Dear Sir: Complying with
your written request, in reference to
the loan made through me to the
State Of South Carolina, 1 beg to say
that we submitted a proposition to
the financial board, just as we have
done in the past. I invited. in my
bid. a representative Of che State to
go to New York with me to finally
conclude the matter his expenses to
he paid by the State Of South Caro-
lima. The governor was delegated by
the comptroller general and the
State treasurer as the representative
OF the State Of South Carolina to ac-
company me. I had, Of course, no.
ticed considerable comment in the
papers In reference to the ability Of
tho State to borrow money II you
were elected. and I thought it moth
Ing but proper that the owners OF
$6oO.0o0 worth Of paper Of South
Carolina should have occasion to dis
cuss with the governor the affairs Of
the State in order that they might. for
themselves. get some idea OF who
they were doing business with. The
transaction was not concluded, Meth.
or were the notes signed until after
we reached New York. The paper
was accepted readily and there was
not the slightest hesitation In the ac-
ceptance Of the notes and the borrow
ing OF the money.
In reference to your other ques-
tion. In regard to 20 per cent being
left on deposit with this bank, beg
to say that there was not such re-
quest made as heretofore. 1t has
been customary with the banks
throushout the country to REQUIRE 20
per cent of the money borrowed 70
be left on deposit, without interest;
out in this loan, as stated bv you. no
such request was made
II the treasurer had left any
stated amount with us for any def
mite time. II would have been our
pleasure to have paid interest there
on. as agreed with you. 1t has been
tho custom in the past for the State
to have to pay quite a sum Of money
for pensions some time during the
first Of the year. and as a rule some
thing like S250.o00 to $275.O0O are
paid out for such purposes. Shortly
after that the interest on the State
debt Is obliged TO be met, and this
with the pensions. practically takes
up all OF the 100000. II any unex-
pected balances had been left in the
bank we would have gladly paid in
terest thereon, as stated to you; and
we would have paid interest thereon
This. I believe, was covered in
your message, aleng with other mat
ters. which are the true facts in the
case. just as stated in your message
Il believe the above covers all Of
your written requests
Yours very truly,
j. p. Matthews.
Cashier Palmetto National Bank Of
Columbia. s. c.
Natter Not Discussed.
"Onc could judge from my letter as
above that You and 1 had made q
special agreement I'm reference to
unused balance OF the $4,000 bOr-
rOwcd I'm New York, while you, nf
course. know quite we'll that the mat
ter of paying interest on balances was
not referred to at all during our en-
tire trip.
MY letter was also made to say
that this bank had required 20 per
cent balances heretofore on State
loans. but did not require such a bal
ance i'm this particular instance. My