Year: 1872




for October 81, 1871, that the issue of bonds
under this Act amounted to 81, 1S9,4OO. This
amount I therefore assume was the amount
authorized by the Act. On the 18th day of
February, 1869, the Legislature passed an
Act to authorize loan for the relief of the
Treasury. This Act provided for loan, upon
coupon bonds, of sum not exceeding one
million dollars, or as much of that sum rs
might be necessary for the relief Of the Treas
ury of the State. This Act provided, further,
that these bonds might be used as collateral
security for loans BY the Financial Agent of
the State in the city of New York, under the
direction of the Governor, Attorney-General,
Comptroller-General and Treasurer of the
State who might also authorize the Finan.
cial Agent to sell these bonds at the highest
market price, but for sum not less than
should be fixed by them. AS to the propriety
of this Act, was never fully satisfied, but
my recollection is that voted for it upon the
assurance of the Governor and Financial
Agent that it was absolutely necessary. 1t
authorized, in my judgment, bonded debt,
not exceeding one million dollars. On the
9th of March, 1869, the Legislature passed
an Act to provide for the appointment Of
Land Commissioner, and to define his powers
and duties. This Act provided that the Treas
urer of the State should be authorized to issue
to the Land Commissioner, bonds Of the State
in the sum of 100000, if, in the opinion of
the Advisory Board, so much should be ne
cessary Subsequently, on the 1st of March,
1870, the Legislature passed an Act to amend
an Act to provide for the appointment OF
Land Commissioner, &C. In this Act it was
provided that the Treasurer of the State be
authorized to issue to the Land Commissioners
bonds of the State in the sum Of $500,000, if,
in the opinion of the Advisory Board, so
much be necessary. These are the only Acts
of the Legislature passed during the last four
years authorizing the creation of bonded
debt on behalf of the State, and, if you have
followed me carefully, you will perceive that
the whole amount authorized is four million
three hundred and eighty-nine thousand four
hundred dollars.


Now, by the official statement Of Mr.. Treas
urer Parker of the public debt of the State
at the close of the fiscal year ending October
81, 1871, the bonded debt of the State amount
ed to fifteen millions eight hundred and fifty
one thousand three hundred and twenty-seven
dollars and thirty-6ve cents, or, in round
numbers, sixteen millions of dollars. Now,
take from this amount the amount of bonded
debt in existence when the present State Off
GERS came into power, and it appears that the
debt has actually been increased about ten
and a half millions. Now, how does this
tally with the amount actually authorized by
the Legislature? The amount authorized by
the legislature as already shown you, is four
millions three hundred and eighty-nine thou
sand four hundred dollars. Subtract this
amount from the actual increase of the debt,
and you find that, without authority of law,
there has been added to the State debt over
five and half millions of dollars.


Fellow-citizens, this is true statement OF
the case, as appears from the financial report
of Mr.. Parker, and I take it that he has
made as favorable statement as he posi-
bly, could. My own opinion is, that the in
crease of debt is considerably more than the
sum stated, but that may not be charged
with unfairness, I take Mr.. Parker's own
statement. How shall we account for this
enormous but lawless increase of the public
debt? The amount is startling, and fills US
with CONSERVATION. What can we say, what
shall we do, in view of the facts, as they are
admitted to be? How was it done? | will
give you the explanation that has been given
for this increase of the public debt. Mr..
Parker gave to the public an official state.
ment of the debt of the State, at the close of
the fiscal year of 1871. In that statement, l
discover the deep and damning explanation,
so far as it goes. The Legislature, on the 23d
of March, 1869, passed an Act to provide for
the conversion of State securities. This Act
provided that the State Treasurer should be
authorized, on the application of any person
holding stock or bonds of the State, to take
the same, and issue in place thereof, bonds of
the State This Act was intended simply for
the accommodation of those who held one
class of State securities, and desired to change
them into another class of State securities.
1t was never intended by the Act, and no
such intention appears upon its face, to IN
crease the State debt. But in Mr. Parker's
statement, before referred to, it appears that
there has been an issue under the provisions
of this Act of seven millions one hundred
and ninety-one thousand seven hundred dol
lars. In the name of heaven, why is this ?
Has he converted the stock and bonds of the
State to this amount? No. By his own off,
cial reports to the General Assembly he shows
that he has converted less than two millions
of the stocks and bonds of the State under
the provisions of this Act.


Thus it appears that there are now afloat
upon the market, and probably in the hands
of innocent holders, without law, and without
authority of any kind in their original issue,
at least five millions of dollars in conversion
bonds. Who of our State officers are respon-
sible for this? First and foremost among
them are certainly Robert K. Scott, Govern
or; N. G. Parker, Treasurer, and D. H. Cham
berlain, Attorney. General, who constitute the
Financial Board, to which must be added, at
ter the first of February, 1869, J. L. Neagle,
omptroller-General. I regret to name one
of these gentlemen, because he has been my
personal friend. / refer to Mr.. Chamberlain,
Attorney General. But am now dealing
with public officials, and not with personal
friends. Ipresume that the Financial Board,
in the issue of bonds and the increase of the
State debt, acted as whole, and the majority
determined what should and what should not
be done. If any one Of them is not guilty OF
participating in or countenancing this enor-
nous increase of the State debt, let him say
so, and fix the responsibility where it belongs.
The record of the Board has never been made
public, and we can only consequently speak
of its action as a Board, and not of the acts
of individual members of it. If you have
followed me carefully in my statement Of the
several Acts of the Legislature authorizing
the issue of bonds, you will note that in no
instance is the Financial Agent of the State,
in the city of New York, authorized to sell
or dispose of a single bond, except at the rate
. G,.od hx tho Einancial Board II fellows