The herald and news. [volume] (Newberry S.C.) 1903-1937, 1914-02-06
SPECIAL MESSAGE ON
IMPORTANT QUESTION
POSITION OF GOVERNOR GIVEN
TO LEGISLATURE.
In Matter OF Refunding Bonded In.
debtedness and Also in Regard to
State Loan.
Special to The Herald and News.

Special to The Herald and News.
Columbia, Feb. 5.-In a special mes
sage to the general assembly, "in the
matter of refunding the State debt"
Governor Blease transmits the records
in connection with the borrowing of
money for current expenses of the
State last year, and also discusses
the 1912 refunding act, in connection
with the bonded indebtness of the
State, and the matter of refunding this
! bonded Indebtedness, which has been
live question in South Carolina since
the 1912 refunding act was passed by
, the general assembly. The governor
position in the matter, and his reasons
therefor, are fully set forth in his mes
sage. This is a matter Of vital import
ance to the State, and the message OF
the governor is published herwith.
The record which is transmitted
deals with the matter Of borrowing
100000 by the State last year, and
the fight of the goveronr to secure
loan upon which interest would be
laid by the State only as the State
needed the money.
Heretofore, says the governor,
"the State has borrowed the full
amount of money which she needed,
whether it be 100000 or 100000, in
! bulk, and it drew interest from the day
it was borrowed, Notwithstanding the
fact that the banks kept it on deposit,
and much of it was not paid out un-
til late in the year Still the banks
were holding the money and tle State
was paying them interest for it.
"The precedent which has been set
lin the last loan) will not only now,
but hereafter, be followed, and the
State in the future will be saved many
thousands of dollars by paying inter
est on money when it gets it, instead
of borrowing it months ahead and pay
Ing interest when it is not using it, as
it has been doing heretofore. There
fore, l have gained something for the
State by making this fight as all must
admit. However, 1 really think, and
am still of the opinion, that the legis-
lature ought to put the State on cash
basis and not have to borrow this
money every year. By doing this 1t
would be unnecessary to have prece-
dent such as this set for borrowing
committees"
Lack of space forbids the publica-
ton of the entire record in regard
to this matter. The history Of the
securing of this loan, however, is
familiar to the readers of The Herald
and News.
The message Of the governor, trans
mitting this record, and discussing
the matter of the refunding Of the
bonded indebtness, is given in full.
The Message.
Gentlemen of the General Assembly.
! 1 herwith transmit to you certain
correspondence and minutes OF meet
ings of the sinking fund commission,
and other matters, in connection with
the borrowing of money by the State
during the past year. The record is
self-explanatory. The first six orlgi-
nal notes mentioned therein are in my
Office. The note about which there
was controversy, as to whether or
not it had been signed by others than
myself is among them, and is subject
to inspection by any of you. will
state, however, that that particular
note has been closely locked in a
bank vault in this city since its return
O me, and find that, from some cause.
i suppose chemists could explain it
to you-the name Of one of these
gentlemen is gradually beginning to
reappear thereon. 1 submitted this
note at the time to various gentlemen,
and not man said he thought the name
Of either of the men in question had
ever been placed on it, and one gentle
man, after very carefully examining it,
under a glass, stated that if the names