Democratic standard. [volume] (Georgetown, Brown County, Ohio) 1837-1850, 1841-02-16
Correspondence of tho Statesman.
GALLIPoIIs, O., Feb. 2nd lS4l.

GALLIPoIIs, O., Feb. 2nd lS4l.
Sir:- " .sat
This place has for the last ten days
been in a constant state of excitement,
in consequence Of the entire failure Of
the Bank. Every hour has brought some
unfortunate holder Of Gallipolis paper,
anxiously asking what can be done with
III But such questions are lost, in the
general surprise at seeing and hearing
The great and alarming frauds that have
been practiced by part of The late Off
GERS Of the Bank. II is now well ascer.
tanned that the circulation largely exceeds
the amount reported by the Bank, this
amount Of excess cannot now be certain
ly known, but as an amount of notes ex.
ceeding sos, 600 (Which was all as by
report in circulalion) has already been
taken in; and from all quarters we hear
Of large amounts, the excess it is SuppOs.
ed amounts TO 100000.
On an examination of the vaults.
S702 900 in notes not signed, and $780,
600 Of those filed up and signed, Of the
denominations of /, 2, 8, 5, 10, 20 and
100 we're found. And of the 100000
filed up and signed, II is said the Presi-
dent, E. E. Smiths name was forgery,
as It 10 also on three fourths Of all the
notes in circulation.
In one package, over 100000 ofnotes
and bills Of exchange, drawn by John
Murphy and signed by John o. Bailey,
and by Morris Sulivsn, were found, these
bills were payable some at the U. s.
Bank Of Pa, and others OF banks in New
York, all these were evidently frauds
and to be used for fraudulent purposes,
some of which had been entered on the
books as notes discounted, and forward.
ed 10 New York for collection, ana in
the redemption of the notes Of the Bank,
checks at sixty days had been drawn on
this fictitious paper.
No register Of the notes issued had
ever been kept, or If kept, had never
been seen by any Of the Directors, nor
has il yet been found. The question is
frequeully asked, how could the Direc-
tors overlook SO material document in
their examinations and certify TO the
amount Of notes put in circulation2 To
say the least, the Directors relied entire
Iy TOO much upon ike honesty of the
Cashier and President.
1t came oul in the examination Of the
testimony against the President, on his
examination on the charge of obtaining
money under false pretences, that during
The months of October and November
last, specie to the amount of twenty one
Thousand dollars was, by the Cashier sent
Ofat the hour Of midnight, unknown to
The Directors, being thus taken at three
d lferenl times. And also, that after the
report Of the committee on the first of
January, the Cashier took off S. 600
in gold that had been counted as assets
Of the Bank, shown as such by him to the
Directors.
Il appeared also, that some connexion
existed between this Bank and tho Bank
Of MillingtOn, az on the arrest of A, G. |
FarrlngIon, the late President, from $50
to $25.000 Of this kind Of paper was
'ound with him.
On the whole,a greater system of ras.
salty has never been put into operation
n the western country, and the amount
'f the impressions ofnotes on hand shows
that the matter was not fully carried out
md that the design was 10 put at least
B | 600 900 in circulation.
That you may Understand more fully
III the matters heretofore mentioned, / Il
will give the names Of all the officers Of
he Bank up TO the time Of ils explosion.
In 1899, E, E. Smith Of New HamD.
hire, was elected President, and All Ii
Scoyille Of New York, Cashier and
we're continued in Office as such until
December le40, when, upon the dea,h /,
lfMr. Smith, A, H. ScoviIle was elected ,
President, and Frederick E. Whiting ap.
pointed Cashier. This arrangement was
continued until the 4th Of January lS4I Il
when A, G. FarrinRton was said 10 have
bought out the stock of the Bank, and
was on that day elected President, and
appointed E, Stratton Cashier. Earring.
ION ~ Is from New York, Stratton from
Son' Ioslon' None Of the citizens Of the
p." p,ace nave ever had any Office in the Bank
S. ~ 81 directors, each of whom il is
lars. O a'''Ount o. Ten doi-
On the 2S'h Olt, Harrington wa, ar.