Yorkville enquirer. [volume] (Yorkville, S.C.) 1855-2006, 1913-08-22
Estate TREASURY DEPLETED,
For the First Time In Years Claims
are Not Met.
DISPUTE As TO TERMS OF CONTRACT.

Comptroller General Informing credi
tors There is no Money Available
Officials will Have to Go Lacking il
Salaries Until Taxes Come in, Un
] less State Borrows Money-PaImett,
Bank Cancels Offer of Loan Beeaus,
State Would not Take $500, 900 il
Lump Sum.
News and Courier.
Columbia, August 1S.-The state
treasury is depleted. There is nc
money to pay the running expenses
Of the government. Claims against
the state. amounting to several thous.
and dollars, have been held up be-
cause of lack of funds. The Palmet.
to Bank declared today that they
had called off the offer to loan the
state of South Carolina 100000 al
s per cent, because they could moi
lend 1t in installments of $50,00t
each as the state needed the money
Meanwhile Comptroller Gen. Jones
is informing persons holding warrants
against the state of South Carolina
that there is no money in the treasury
and everything is being held up
For the first time in years, South Car
olina is not meeting her claims
Salaries of all state officials, and
county officials getting their money
from the state, will have to go want
ing until taxes come in unless ar
rangements are made for borrowing
some money Immediately.
Banks Offer Cancelled.
Because the income of the state
from year to year will not pay the
expenses, it is necessary to borrow
some money each year during the
summer months to meet the expenses
until the tax money comes in during
the fall. In accordance with this Gus
tom, the legislature authorized the
governor, the comptroller general and
the state treasurer to have charge OF
borrowing whatever money was nee
essary. Treasurer Carter estimated
that 1t would take from $250,000 to
100000 to meet the ordinary ex-
penses until tax money came in. The
governor made arrangements with
the Palmetto National bank Of this
city, for a loan of 100000 to the
state at per cent interest, and six
notes of $4,000 each were signed by
Governor Blease and turned over to
the state treasurer through the sink
ing fund commission. Treasurer Car
ter and Comptroller General Jones
signed one note for $4,000 and sent
1t to the bank, which refused to ad-
vance the money in installments,
claiming their offer had been for the
entire loan Of 100000 at one time,
and stated that unless all six notes
were at the bank by noon today ne
gotiations would be off and their Of
fer withdrawn.
InstalIment Plan Authorized. =.
The matter of the need for this
money was brought up before the
sinking fund commission last week,
and on motion it was left with the
governor, comptroller general and
state treasurer to make the loan, the
resolution calling for money to be
borrowed in installments and called
off the offer Of the loan.
Unless other arrangements for get
ting money are made there will be no
money to pay any claims against the
state until taxes are collected this
fall. No salaries to state officials and
no claims of any kind against the
state will be paid unless some money
Is borrowed.
The following letter passed between
Governor Blease and State Treasurer
Carter in regard to the matter to-
day:
Carter Issues Statement.
Mr.. S. T. Carter, the state treasurer,
and one Of the members Of the bor-
rowing board, tonight dictated the fol-
lowing statement in regard to the
failure of the bank to accept in in
stallments the notes which are neces-
sary to float if the state is to meet its
obligations. AS it stands tonight, the
state of South Carolina for the first
time since the Democrats recovered
the state government in 1876, is fail
ing to meet its running expenses
promptly. Mr.. Carters dictated
statement follows:
1.-The six notes for $4,000 each
were delivered to me by the chair
man of the sinking fund commission.
and not by Governor Blease. The
sinking fund commission in its res
olution ties a string to the notes and
the bank refuses to take them under
those conditions. The contract for
the loan was made by Gov. Blease,
as appears from Mr.. Matthews let
ter. l had nothing to do with the
making of the contract and was not
consulted by the governor in regard
to it, although the law requires that
the governor, the comptroller gen.
eral and the treasurer shall borrow
the money.
1T is Governor Blease's contract,
and he and the sinking fund commits
sion construe 1t one way, and the
bank construes 1t another. 1t evil
IDENTIFY was the governors intention to
have these notes placed with the bank,
from time to time, as the money shall
be needed, or he would not have had
six notes for $4,000 each drawn.
when one for the entire amount would
have been sufficient If it had been
his purpose to have the whole amount
placed to the states credit at this
time.
"Since the bank declines to comply
with its contract, made with Mr..
Blease, have referred the matter to
him for enforcement.
1.-The state needed $4,000, and, ac-
cording to the instructions I received
with the notes, presented one note
for $4,000 to the bank. When
claims amounting to 100000 are pre-