The Manning times. [volume] (Manning, Clarendon County, S.C.) 1884-current, 1913-08-20
SOMEBODY AT FAULT.

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SOMEBODY AT FAULT.
There seems to be constant
turmoil IN Columbia, especially,
whenever the executive and the
State officials come in contact
with each other. and somebody
is to blame for this condition,
who. we shall not undertake to
say, but the fault lies somewhere.
The latest racket arises out of
the States usual need of funds
at this season of the year to
meet current expenses; it has
been the custom in the past for
the State to borrow from the
banks in Columbia, at a low rate
of interest: enough money to tide
affairs over until the taxes are
collected, but when it attempts
to do so now, a higher rate OF
Interest is demanded, and advan-
tage is taken of the States needs
to force interest charges upon
unearned money. Shylock is not
in the running with some of Co.
lumbia's fnanciers.
When informed by State Treas
urer Carter, the funds in the
treasury for general expenses
We're low, and 1T would be neces-
sary to borrow S250.O00 or $780,
900, and the banks were demand
ing 5 per cent, the Governor OBJ
jected to the interest charge as
being higher than heretofore.
and suggested that each depart
ment finance itself for the re-
naming months; this was not
practical and arrangements were
made with the Palmetto Nation
al Bank, of which Mr.. J. P.
Matthews is cashier, whom the
official loans of this nature are
negotiated with. The Governor
made a verbal arrangement with
Mr.. Matthews to borrow tn e
needed money at 5 per cent, with
the understanding. that the in.
terest was not to begin until as
the State needed the money, but
when the Treasurer sent the first
note Of $4,000 to the bank it
was rejected and the Cashier
lclalmed that he had not agreed
to loan the State the money in
Iinstallments. This action on the
part of the bank was communi-
Gated by the Treasurer to the
Governor, With the statement
from Treasurer Carter, THE
bank having denied any such
agreement, as you claimed, and
as I have no records confirming
any such agreement, the matter
is referred to you for enforce.
lment." Which we take to mean
that the Governor misled the
Treasurer in claiming that he
had made a certain agreement
with the Cashier, and which
turned out to be untrue, there
fore, the Treasurer put it up to
1.-The Governor to enforce th e
|agreement he claims to have
made with the bank: Governor
IBlease replies to the Treasurer
by publishing the letter he re
ceived from Cashier Matthews,
confirming bis statement that an
arrangement was made with the
bank. to pay interest on the
money as the State needed the
loan.
The Governors purpose in
making the arrangement as he
Ibid, and the correspondence
lshows he did, was to save the
Taxpayers interest charges. but
from the way things turned out.
lit looks like the bank found the
State in a helpless condition, and
endeavored to make the State
take the whole amount, leaveit on
deposit so the amount which
twas not being used by the State
could be used by the bank, al,
Though the State was paying in
terest on it.
If it is the purpose to embarass
1.-The administration by this sort
of manipulation, it may succeed
| for a while, but when the legls'
lature assemblies, a means may
be found that will not give the
bank in Columbia another op.
Iportunity to squeeze the State,
and there may be some way found
that will put a stop to the polit'
ical maneuvering of d class Of
politicians who are constantly
Intriguing against one another.
The letter from the Cashier to
1.-THE Governor, which confirms
his agreement for the loan as the
Igovernor claimed, is as follows:
! columbia. S. c., Aug. Is, 1918.
Governor Cole L. Blease, Chairman,
Columbia, S. C.
"'My Dear Sir:-Con6rming verbal
iStatement made in reference 10 financ.
ing the State of South Carolina, We beg
to say that we will make the State ad-
vances, on the usual form, to the extent
of $3.50, 900 TO $500, 900. payable January
l, at rate of 5 per cent, the notes to
bear interest from date the State needs
the money:
1--WE take the liberty of enclosing
herewith six notes Of $4,000 each and
if il is the pleasure of the State to ac-
cept our proposition we will be very
GLAD to have the notes promptly eXecut-
ed and returned 70 US.