The herald and news. [volume] (Newberry S.C.) 1903-1937, 1913-08-22
STATE TREASURY is DEPLETED
Palmetto Bank Cancels Offer of Loan
Because State Would Not Take
100000 in Lump Sum.

Columbia, August 16.-The State
treasury is depleted. ehTre is no
money to pay the running expenses
of the government. Claims against
the State, amounting to several thous-
md 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 at per
cent. because they could not lend it
in installments of $4,000 each as The
Stated needed the money. Meanwhile
Comptroller General Jones is inform
ing persons holding warrants against
the State of South Carolina that there
is no money in the treasury and ev-
erything is being held up. For the
first time in years South Carolina is
not meeting her claims. Salaries of
all State officials, and county officials
getting their money from the State,
will nave to go wanting. until taxes
come in unless arrangements are
made for borrowing some money i'm
mediately.
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 it would take from S250,000 to
100000 to meet the ordinary expens-
es until tax money came in. Tne
governor made arrangements with the
Palmetto National bank, Of this city,
for a loan of 100000 to the State at
5 per cent interest and six notes Of
$4,000 each were signed by Governor
Blease and turned over to the State
treasurer through the sinking fund
commission. Treasurer Carter and
Comptroller General Jones signed
one note for $4,000 and sent it to
the bank, which refused to advance
the money in instalments, 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 negotia
tons would be off and' their offer
Withdrawn.
Instalment 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 the money to
be borrowed in instalments. The
bank refused to lend in instalments
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 letters passed be-
tween Governor Blease and State
Treasurer Carter in regard to the
matter today:
Carter Issues Statement.
Mr.. S. T. Carter, the State treasur-
er, and one of the members Of the
borrowing board, tonight dictated Se
following statement in regard to the
failure of the bank to accept in in
stalments the notes which are nee
essary 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 recov-
cred the State government, in 1876,
is failing to meet its running eSpens-
es promptly. Mr.. Carter's dictated
statement follows:
''The six notes for $4,000 each,
were delivered to me by the chairman
of the sinking fund commission, and
not by Governor Blease. The sinking
fund commission in its resolution ties
a string to the notes and the bank re-
fuses 10 take them under those con-
ditions The contract for the loan
was made by Governor Blease, as ap-
pears from Mr.. Matthews letter.
Io 1o Of