Burlington free press. [volume] (Burlington, Vt.) 1827-1865, 1846-03-27
TO THE TAX-PAYING COMMU
NIFTY IN VERMONT.
No. L.

II Is proposed to publish in this paper
series Of numbers, on the imperfections of the
system of accounting in this State. The sub
jsct will he essentially financial. and the Oh.
iect the proper administration of the public
revenue. In treating the subject, we design
TO speak of the law relating 10 fees, and ac-
counting, as it was, from 1877 to 1912; land
from 1912 to 1915, when new law was en-
acted essentially changing the system intro
duced by the act of 1912.
In speaking of the old law, in force before
1912, we shall consider its defects the renee
DIV applied by the act Of 1912, with the cause
or the repeal or essential modification o. the
act of 1912, by the act Of 1S45; also COM
ment upon the act of 1S45 its de-
fscts as contrasted with the act of 1912, and
its probable operation upon our finances,
while il shall continue in force. Our remarks
upon these laws must necessarily be brief
and somewhat dcsul,ory. The law existing
for As years before 1912, regulating feesand
accounting though modified from time TO time,
was always essentially defective, and could
never secure faithful application ofthe pub
lie revenue to the purposes of governments
Ii could not always secure the States rights,
for it had not the means Of knowing the
States claims. 1t could no, compel our cit
liens to be honest for il could not know when
they had embezzled the public funds. Claims
against the State were several times paid,
because presented a; different boards, author
lied to settle them, and the law had made no
provision TO prevent such practice. Errors
aud frauds, in accounting, might occur to an
indefinite amount, without the possibility OF
correction, for an order on the State Treasu-
~ covered all defects, and there could be no
revision. The public property, existing in
securities, as in bonds, judgments, fines,
costs, &C., was wasted to an enormous
amount, because it was made the proper du-
~ Of no man TO guard all these interests
against loss; and exhorbItant and unreasona-
BILE remuneration was awarded for compare
lively trifling services, because no document
exhibited, to the people or 10 the Legislature,
the disproportion between compensation and
service.
These imperfeclions, in our laws of &C.
counting had been partially realized by some,
before the session of the Legislature in 1871,
when by a joint rcsolulin Of that body, tie
Auditor Of accounts, among other duties there
in assigned him, was directed to report to the
then next session, "wl,at notifications of the
laws was necessary to secure more thor
ough accounting, by every officer or citizen.
being in the receipt of money belonging, IN
any wise, to the State Of Vermont" Tue
duty thus imposed, led to the disclosure OF
the following facts, illustrative of the truth OF
the preceding remarks. A claim was pre-
II II, In I'd FIR all AM
on full consideration of the facts, was dis
allowed; it was withdrawn, and subsequent
ly presented to another board, and allowed.
Another claim was presented as above, and
allowed, at a Just sum, as was supposed, and
the amount was paid at the Treasury. This
claim was again presented at another board
and allowed at a greater sum. Claims have
been allowed BY the General Assembly, will,
an express condition, that the allowance shal
be taken as a final settlement of the claim
and in short time the same claim has agar
been presented and allowed, and sometime.
to q still greater amount.
Another defect in the law before 1912
was, that in some cases it secured no account.
ing from persons intrusted with the public
funds. The directors of the old VI. State
bank, we're under bonds "for the faithful dis
charge of the duties of their Office" but the
law had provided no board to inspect the con
duct Of those directors, and of course the
Legislature knew nothing, less or more, abou
the concerns of that bank, than the integrity
Of those directors induced them to disclose
The Legislature had not the means of charg
ing those directors with all the State fund
coming into their hands, for il was Away
ia their power to use those funds to observ
their own interes,s,for along TIME AT LEAST
before knowledge Of the fact could avail Il
secure the public rights.
Such a case occurred at the Mildlebur
tranch, and judgement of about $50, OW
was recovered against the directors, wlilc
was finally RENTED to them by tho Legisla
lure, and lost to the State. Here was i'd
space left open, which might be occupied b
corrupt and dishonest practices; and whe
we take into the account, that the act estab
fishing that bank authorized the directors I
borrow money TO fill their vaults, so that III
deposites might extend to three hundrc
thousand dollars in each of the four branche.
aud that discounts might be made TO tire
times the amount of all those authorized dc
posites, "a sum equal TO 50 ,6Oo, 600, and 'i'
the faith of the Government was pledged ft
the redemption Of all the paper thus put
circulation, it is amazing, that the Legisla
turs should have relied upon ssch feebl
means to protect the funds Of treasury, IA
Of which are supplied by direct taxation. :
This bank was established in 1906, and
1922 an agent was appointed TO settle j
concerns. His powers were AMPLE ",o co
lect al debts and demands )" he was und
bonds faithfully 10 "execute and dischar!
the trust reposed in him" by the act appoin
inc him. But the law made no provision
Inventory the property u,rus,ed to his ma
agemen,, or for accounting for the fun
passing into his hands. Nor is II known, III
: se,,lement was ever made with one of tho
.,eu,s. from other data, than those furnish'
by the agent himself. This is not said
way of reproacb to those agents; they a
suDposed TO have been honorable men. III
same may be said of all of the officers OF Il
bank-st least of all who were not found
DO delinquent. The fault was in the La
and il was lawful for its officers to do
which ihs law did not forbid.
Our purpose is to show the defects OF Il
lsw by exhibiting it's operation in practice.
Since the act Of 1912, the following q