Business; Capitalists and financiers -- United States; Speculation; Wall Street (New York, N.Y.)
I know the people of this State; and as an
evidence of my opinion of the future of this State and its
bonds, I will say that if I had my choice to put my money into
these bonds of the State of Georgia, or those of the State of
New York, to leave to my family, I would give the bonds of
Georgia the preference, for the reason that her debt is so small
as compared with the debt of the State of New York at the
present time, and the future of the State of Georgia is destined
to be one of great prosperity.” Mr. Plant then said: “Mr. Clews,
Mr. Calhoun has advanced $400,000 towards the amount I need, and
I want $250,000 in addition. I know the money market is very
tight [as it was at that time, money being worth 7 per cent. per
annum and 1 per cent. per day commission]; still, I think, if
you will loan this money to the State of Georgia, that it will
enable you to make a connection which will prove profitable to
you in the end.” I said: “Very well, Mr. Plant, I will make the
loan to the State of the $250,000 which you require.” Mr. Plant
then said: “Well, place it to the credit of the State of
Georgia, and I will bring in 500,000 of Georgia 7 per cent.
currency bonds, the same character of bonds which have been
lodged as collateral with the Fourth National Bank. I will go at
once to the Fourth National Bank, where they are, and bring them
down here;” which he did. The $250,000 was then placed to the
credit of the State and a telegram to that effect was sent to
the Governor, and it was at once drawn out on the official
drafts of the State. This started a correspondence with Governor
Bullock, in his official capacity, he being entirely unknown to
me before. Other applications were then made direct by the
Governor for additional loans, which were made from time to
time, until the amount so advanced reached to $1,650,000. After
receiving, in addition to the 500,000 bonds referred to, 800,000
more of similar bonds came into our possession from time to time
as collateral, being put up at 50 cents on the dollar; and when
we afterwards received a large installment of the gold quarterly
7 per cent. bonds, having at that time an excess of collateral
in our hands, we voluntarily forwarded to the State 500,000 of
the Currency 7s. This was precisely and exactly the way my
firm’s connection was commenced with the State of Georgia. Mr.
I. C. Plant, who is still a banker of Macon, Ga., I am sure,
will testify to the correctness of my statements.
Public-domain text, read in full here on John Shaqi.
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