Richmond enquirer. [volume] (Richmond, Va.) 1815-1867, 1829-01-13

ness to settle with the Banks. He, therefore, in I
formed US. that it would be more convenient, If
| we would come into the Office on the morning at
ter the close of one quarter, before the business
OF the Treasury commenced. To this suggestion,
we agreed, as il was manifest that the object OF
the law could be effected as perfectly by pro-
ceeding in that way. as il we had been admitted
into the Treasury office the evening before, for
the purpose OF making the count. We according
" atseuded at the office on the morning Of the first
oil last January, and counted every cent OF money
which was produced by the Treasurer, as having
remained in his office the evening before, and took
memorandum OF the same. We then addressed
letters TO the Presidents of the two Banks, in
which we requested them to inform us Of 'tbe
amount of monies or dcros,t m their respective
Banks, 10 The credit of the Commonwealth" at
the close OF the quarter, ending on the 3lst De-
cember, 1927. On the next day, we received an
swers from the Presidents Of the two Banks,
stating the amounts of the public monies on de
post in their respective Banks, TO the credit of the
Commonwealth Adding the sums thus reported
from the Banks, 10 that which we had counted in
the office, and comparing the whole with the Au-
ditor's books, (Which was done as soon as it could
be done it appeared that there were about $500
more in the Treasury than ought TO be there
This %overplus was very nationally accounted fm,
upon the supposition, that checks had been issued
by the Treasurer, which had not been presented
Tor payment at the Banks. OF course, il appeared
tiat the public funds had not been nisapplied,
and that every thing was done which ought to have
been done.
Mr.. Pendleton and myself wrote out our reports
in form TO the Executive alternately. l had writ
ten out the preceding report, and il became his
turn to write out the one which was made at the
period when the defalcation was discovered. He
has explained in the report why it was not made
sooner. Things rested in this situation so far as
my knowledge extends, until, D9iink, about a
week before The defalcation was discovered-when
MIR. Pendleton mentioned to me the circumstance
of two checks which had been drawn Ivy the
Treasurer, on the two Banks, on the 3lst day of
December, 1927, the day on which our quarter
closed, which we had been appointed TO examine
the one upon the Farmers Bank, in favor of the
Virginia Bank, amounting 10 SII, 730-the other
upon the Virginia Bank, in favor of the Farmers
Bank, amounting TO $3.50, which checks had
been deposited en- that day, but had not been
paid on that day, and upon which the Treasurer
had received credit on the books of the Banks, to
the amount of the two checks, viz: S2l ,6l0, on
that day; and that the probability was, that the "a
mount OF these two checks had been included in
the statements Of the two Presidents of the Banks.
which we had received on the I'd day of January.
Mr.. Pendleton handed to me a memorandum,
stating the amount Of these two checks, of their
dates, sc. in the hand writing of Mr.. Nekervis,
the Cashier of the Farmers Bank of Virginia. ]
went Immediately TO him, and he gave me every
information which l desired in relation to the two
checks. Ii appeared then that the Treasurer had
obtained credit upon the books Of the Banks TO the
amount of S2l ,6l0, not for money which he had
deposited on the 3lst of December, but for checks
or orders which he had drawn, and that it requir-
eu Une urnOttht oil tnlS cream 10 MAKE up the sum
which ought TO be in the Treasury. Where was
the money, was the inquiry? The Treasurer
could not tell US that it remained in the Treasury
office on that day, and that he had drawn the
checks asa matter of convenience, because the
Imoney had been counted in the Treasury Office on
that day, and adding the sum found there 10 his
whole credits upon the Bank books, including
these two checks, only made the sum necessary
as required by the Auditors books. The checks
that were thus drawn and deposited in the Banks,
on the 31st day of December, 1927, were not
presented for payment until the I'd day of Janua-
ry. There was then manifestIy a deialcation in
the Treasury on the 3Ist day OF Dec. 1927.
| The Committee addressed a letter to the Trea-
surer, Tor an explanation of these two cross checks.
They were promised the explanation on the next
day, and the tragedy which ensued left not a
remaining doubt that none could be given. The
amount Of the defalcation was afterwards ascer-
tanned, and has been made known to the Legisla-
ture. This is a history Of all the material facts,
as far as my recollection serves me, which led to
the discovery of the dedication. Very respect
JOHN CAMPBELL.
NOTE.
The subject OF cross-checking in Bank, NAV re.
quire a farther explanation to make it ineligible
Ii can be illustrated by supposing the case Of pri-
vate individual An individual deposits in the Vir-
einia Bank 800, and in the Farmers Bank the
like sum of 800. 1t i known TO both Banks that
he has funds in each 10 that amount. On the 3Ist
of Dec. 1927, he goes into the Virginia Bank, and
draws a check or order, upon the Farmers Bank.
for 500 in favor of the Virginia Bank, deposits
the check in the Virginia Bank, and tells the pro-
per Officer 20 give him credit for that sum, upon
the books of the Bank-which il accordingly done.
The Officer knowing that there are funds sufficient
in the Farmers Bank 70 meet The Order, gives him
credit for that mech money deposited. He draws
A like Order for 500 upon the Virginia Bank, in
favour of the Farmers Bank, and obtains a credit
precisely in the saline way. These Checks are not
presented for payment until the next day. On the
3Ist day of Dec. there would then appear up
on the books of each Bank, 10 the credit Of this in.
dividual, $500, making in all 800 The next day
the Orders are presented, and 800 is taken out OF
the Virginia bank, and 800 out of the Farmers
~Bank-which brings back the amount of credits
upon the books of both Banks, to $500.
But a request is sent 10 the Officers of both Banks,
to tell the constituted authorities, what was he a.
mount ofHOney on deposit TO the credit of this in
%dividual, on the books of the respective Banks, on
the 3lst day Of Dec. 1927, the day on which the
Checks were drawn and deposited, and they each
reply, that there were 5000, making in all $500.
This is precisely the case, in principle, of that Of
the late Treasurer. He had large sums in both
Banks TO his credit as Treasurer, on the 3lst Of De-
cember, 1927. He had at that time made use of
more than Twenty Thousand Dollars of the
Public Money-and it of course became ne
cessary, that he should have credit on the
books Of the Bank for that sum, in addition |
TO his other credits, to make his accounts CORES.
pond on that day with the Auditors Books; he
knowing that, up TO that day, his accounts would
be examined. He, therefore, obtains the addi-
tional credit on that day by means of cross checks.
But the moment the checks are paid, his credits
are, reduced TO upwards of S20, 900, or the SUN TO
which they amounted. lie is credited with The
amount Of the checks on one day and debitci with |
them when they are paid. lie was credited ON
the Books Of the Banks with their amount on the
31st daY of December, 1927; the day on which the
aaa,.a-r ,vAa pNaAn ~ H. 5000 r 4