Lincoln telegraph. [volume] (Bath, Me.) 1836-1846, 1841-06-03

call the attention of the committee TO this fact, TO
show another instance Of ooseness and disregard oil
legal acquisitions connected with this policy De-
side the atnount before stated, the Treasurer was
authorized to nuke an exchange of stock win the
several banks, for the due on the requlsl'ion
loan, and on temporary loans, condition that the
banks should make an additional loan OF shree per
cent of their capital stock in cash, to me ota'e;1
Negotiations to this amount are necessarly a'ehueo
with great expense 10 the State and where they are
frequent and recurring in the case OF short teni-
porary loans, greatly enhance the expense
The annual report fthe la'o Treasurer gives us
no information OF the amount of loans ohta ned I'M
der each of the resolves authorizing him to make
such loans nor does he We the amount oil 'o.ate
securities issued during the year. Such speclhfa'
ton is necessary TO show the dongs OF the treasury
department during the year. The aggregate amount
Of the several loans obained by him, IS stated In
his account Of receipts for the year as follows Va
mount received for sale OF State bonds as per regis
ter of loans in The Treasury Office, 81 ,069 ,549 80.
This is the only information furnished by the la'a
Treasurer, of all his doings under the several re-
solves empowering him TO alect loans of more than
81 million Of dollars on the faith and credit OF the
State in bis annual account OF the Treasury
Whether the amount OF State stock issued, exceed
ed the amount of proceeds credited, or not, is mot
stated but by reference to the registry OF loans IN
the Treasury Office nor is IT stated any wheie on
oil the books az lie OHlpe WHdt huhouht VI
est had accumulated on the respective estate
honds' negotiated by Mr. Williams at the time
If their neso tia,ion The statement is imperfect,
unsatis1a Glory and deusive 1t does not convey TO
the leuslature nor the citizens Of the State full
information ON the subject, and yet purports TO be
An exhibit and statement of the whole ease in rela-
tion 10 these loans The resolves of l840 expressly
prohibit the Treasurer from paying over per cent
for loans, and he had no authority whatever to Dor
,nl, Olypn q hlUh
rate Of interest than per cent. Does the account
as stated show how the fact is in regard to hs point
And is there any exhibit in the annual report OF the
late Treasurer of the cost of obtaining this loan or
apv Of the circumstances or details connected with
III There is none whatever. And yet it Is true,
that the stock issued under the resolves OF ls40,
bore the date Of the respective resolves, and was on
interest from date The Constitution provides that
ga regular statement and account of the receipts and
expenditures of all public money shall be publish
ed nj the commencement OF the annual session Of
.i,e LEGISLATURE" The Constitution has not left the
Treasury, or the duties of the Treasurer TO the
changes and fluctuations of Legislative action, but
has thrown around the safe guards OF its own pro-
visions The duties of The treasurer plainly
and explicitly pointed out but IN this instance they
have been palpably neg elected, and very important
expenditure, or loss to the State, has been omitted
to be exhibited or purp,sey concealed. The actu-
al amount of the State securities issued in 1910 by
the late Treasurer, according to the register of loans
referred to, was 1913, 600-and the amount cred
tied is 81 .O69,54S 80 cts. showing a loss by ds.
count of $4O5i 80 cts, besides all the accumulated
interest on the stock from lis date to the time of its
negotiation portion Of this stock exchanged
with the banks for other securities of the State held
Ay them, in pursuance Of authority given by the
Legislature, And it appears by the report of the
Committee on Finance jus, submitted, 'ihat the
whole amount Of cash received on the stock issued,
was 1921 ,073 96 Cts; and the sum that this cost
the State more than per cent, is 24,234 l6 Cts.
INCLUDING tho interest en- the Temporary loans, the
accumulated interest on the stock notes. the differ
ence in the exchange of six per cent stock for five
per cent STOCK, and the amount charged on the books
of the Treasury This ia the difference TO the State
between the par value of thu stock and the amount
realized to the State upon its sa4e.' The whole OF
this expense and loss 10 the State in this rapsacton
Vas carefully concealed fren, the Legislature, and
the public, and not stated in the annual report
of the late Treasurer. Mr. Williams
Has this fact no bearing upon the question now
under considerauon3 appeal to you, Mr. Chair-
man, and 10 every member ofthis House, whether
it is expedient to CONTINUE further 10 resort TO loans
to supply funds TO meet the ordinary disbursements
of the Treasury, at such cost to the State, as has
been here exhibited. At the lowest possible cacu-
latipn, the loans obtained by Mr. Williams, Treas
urer in lS4J, cost the State the extra sum Of $24,
on the stock notes issued to which rate of interest
the Treasurer was expressly limited by the resolves
of 1910, authorizing loans NATURALIZATION there
is for this expenditure, am at loss TO conceive
And in my view all that was pad, beyond the
scope of his authority, was wrongfully paid, and the
sjgency Of the case cannot be urged in excuse, for
of such exigencies, ii the province of the Legis-
laiure to Judge, and the Legislature d d so judge
and decide, IN prohibiting the payment o. higher
rate ofinterest than six per cent portion OF this
cost was made up, 'of the difference in the ex-
change of six per cent stock for five per cent stock
Your committee state that ''the Treasurer, (1r
w liams,) made an exchange Of six per cent for five
per cent stock, redeeinable in eight years to the
amount of S55, 900. The difference in interest be-
tween six per cent stock for eight years, being eight
per cent. is four thousand four hundred dollars
MIR Chairman, | wish to call the attention Of the
committee particularly to fhs transaction not only
to show the expedients to which the Treasurer of
Maine, Mr. Williams, resorted, 10 procure cash
loans, under the policy which have been endeavor
ing eucidae, but also to show anotherinstance OF
the looseness and total disregard Of authority in the
proceedings of the Treasury Department, Here
was an exchange of stock nqtes, bearing six per
CENT interest, issued in 1910, for FIVE per cent
State scrip redeemable in le4S. There is no pre-
tence of any authority to do this. and yet 1t was
done. The reasons assigned by Mr. Williams, tor
this translation. are contained in tine Report lie
says and use his own language, The inter-
est on this remaining PORTION of the public debt, be-
coming due May /, andheing without means, and
wholly unable to negotiate the stock of the State,
an arrangement was made with the purchasers OF
the five per cent. stock, payable in lS4S, and
bought BY them at auction in New York, TO give
them six per cent stock octhe State Of Maine-tbey