The herald and news. [volume] (Newberry S.C.) 1903-1937, 1913-08-29
. MEETING OF FINANCIAL
BOARD FOR FRIDAY
STATE LOAN COMES Up AGAIN
FRIDAY.
State Treasurer Submits Extracts
From Records of Sinking Fund
Commission Meeting.

state treasurer, anu -. W. "OAoS'
comptroller general, said yesterday
that a meeting would be called, Tor
Friday at noon, of the State financial
board. AT this meeting, they sa1d'
proposals would be considered 1or
lending to the commonwealth $780,
900 or thereabouts, the proceeds OF
the loan to be used in paying current
expenses of the government until tax
collections begin to come in, which
will be in December. The board is
composed of the governor, the State
treasurer and the comptroller gen.
eral.
Meantime the comptroller general
continues to hold up such warrants
as are presented, conceiving himself
10 be forbidden by law from APPROX
ing such orders on the State treasury
when as now there are no funds in
the treasury wherewith they may be
paid.
S. T. Carter, State treasurer, gave
out Yesterday statment on the sit
uation, as follows:
''Mr. Carter said he would like to
quote few extracts from the records
in the sinking fund Office. They fol-
low:
Governor Blease in delivering the
notes to the sinking fund commission
stated: There is matter which
desire especially to call this sinking
fund commissions attention to, and
that is that it is the custom Of these
banks, when they loan money, to put
the money in the bank and keep it
there without interest and at the
same time charge the State interest
from the day it is deposited. For
instance, if they loan US 100000 to-
day some of that 100000 does not
come out of the bank until the first
day of January, and yet we pay IN
terest at 5 per cent. on that money
right from today. I call that mighty
moor business. I called Mr.. Matthews
over the phone yesterday and he
came to my Office and mad talk
with him about it and he wrote me
letter in which he agrees to loan the
State this money at 5 per cent. But
in his letter he has this statement:
Confirming verbal statements made
in reference to financing the State OF
South Carolina We beg to say we will
: make the State the advances on the
usual form to the extent Of S29OOOO
to SSO0,O0O; payable January 1, at
rate of 5 per cent, the notes to bear
interest from date the State needs the
money My understanding of that is
that they are to let us have this
money and as the money comes from
the bank interest is to be charged on
it, and not interest on 100000 to be-
gin today when we are not using it.
And with that understanding l have
signed six notes of $4,000 each, with
the understanding that these notes
are to be held by the State treasurer
until this money is needed, and as
needed delivered to Mr.. Matthews
and interest to be paid from the time
the State gets the money and not
from the time of the signing of the
notes.
"I hand these notes to Chairman
Hardin. want the sinking fund
commission to put these notes in the
possession of the State treasurer and
as the State needs the money, let
him get the money.
"'The notes are drawn to be signed
by the comptroller general, the State
treasurer and the governor. I am
simply putting myself on record as
favoring certain way of getting this
money. Now if the State treasurer
and comptroller general want to go
to Pope Matthews and pay interest
from TO-DAY Ou 9oVO,OOO anu 81 -S'
they can answer to the people.
''I have signed the notes under the
understanding I have stated, have
handed them to Chairman Hardin,
land he has handed them to Treasurer
arter.'
At this point Comptroller General
les is recorded as saying: is it
xx to borrow from the Pal
ase then said: That is
5ing to do am opposed
ng money absolutely, so
n concerned
are extracts from a docu-
ned by J. K. Aull, Gov.
private secretary, and which