The Daily Phoenix

The Question of Funding
Fraudulent Coupons.

In the Charleston News and Courier, of yesterday, we have from "Vidette" an account of conversations had by him with Gov. Chamberlain, Comptroller Dunn and Treasurer Cardozo. All parties professed a desire and purpose to be well pleased with each other and to act harmoniously together. There appeared to be some contrariety of view, however, between the Comptroller and the Treasurer, with reference to funding certain coupons. The former said that he should cordially support the funding Act, interposing objections only to the funding of any fraudulent securities. He believed that nearly a half million of this class of coupons had already been funded, and that there are now outstanding over a half million of coupons not accounted for—coupons which were taken from the conversion bonds before the bonds ever left the treasury. These he will oppose, because he does not regard them as valid obligations of the State. The Treasurer, on the other hand, maintains that, admitting the fact that detached coupons were issued improperly, it is neither legal nor equitable to make those who now hold such coupons suffer for the wrong-doing of the agents of the State, and that it would be best for the interests of the State and her credit that such coupons should be funded. He did not know what would be the Comptroller's course with regard to these matters.

From the account above copied of the Comptroller's opinion and purpose, there would seem to be no reason to doubt that he will regard it as his duty to oppose the further funding of the class of coupons which he pronounces fraudulent, and which the Treasurer thinks should be funded, if the fraud attaching to them rests only on the agents of the State.

Sharing fully the convictions of Comptroller Dunn upon this point, we shall watch with interest the further development of the financial tangle. The idea of treating admitted frauds as valid claims against the State, is repugnant to all ideas of justice and right. To do it while we measurably repudiate the bona fide debt, upon the ground that we are too poor to pay it, is doubly revolting. And when we look at the tax bill, and the bonanza scheme, and the pile of other claims and deficiencies already rising, we wonder what will be the end of all these hideous exactions. Pay, pay, pay! That is the only tune in vogue. The candle is burning at both ends, and in the middle, too.