Vermont phÅ“nix. [volume] (Brattleboro, Vt.) 1834-1955, 1846-03-19
To the Tax-Paying Community in Vermont
NO l..

NO. |.
1t is proposed 10 publish in this paper a series OF
numbers, the imperlectious of the system of ac-
counting in this State, The subject will be essen
italy financial and the object the proper adminisra-
ton Of the public revenue. In treating the subject
design to speak Of the law relating 10 fees, and
accounting, as it was from 1897 10 1912; aud from
1912 to ISIS, when new law was enacted essen
TALLY changing the system introduced by the &C! of
1912
In speaking of the old law, in force before 1912
we shall consider its defects the remedy applied by
the act of 1912, with the cause Of the repeal or
sentia modification of the act Of 1912 by the act Of
1S45; also comment upon the act Of lS45-consid-
er its defects contrased with the act OF 1872 and
its probable operation upon finances while it
shall continue in force. Our remarks upon these
laws must necessarily be brief aud somewhat desu-
tory. The law existing for IS years before 1912,
regulating fees, and accounting, though modified
from time to time always essentially defective
and could never secure faithful application of the
public revenue to the purposes Of government. 1t
could not always secure the States rights for it had
not the means Of knowing the States claims 1t
could not compel our citizens to be honest for it
could'not know when they had embezzled the pub
lie funds. Claims against the State were several
times paid because presented at different boards
authorized to settle them and the law had made no
provision to prevent such practice. Errors and
frauds, in accounting, might occur 10 an indefinite
amount, without the possibility Of correction for an
order on the State Treasury covered all defects and
there could be no revision The public property
existing in securities, as in bonds judgments, lines
costs, &c, was wasted TO enormous amount be-
cause it was made the proper duty Of no 10
guard all these interests against loss and exorbi.
tant and unreasonable remuneration was awarded
for comparatively trining services, because no doc
ument exhibited to the people to the Legislature,
the dlsproportion between compensation and ser
vice.
These imperectlons, in our laws OF accounting
had been partially realized by some, before the SEES
sion Of the Legislature in lS4I when by Joint
resolution Of that body, the Auditor of accounts
among other duties therein assigned him, was d.
rected 10 report to the then next session, "what
notifications Of the laws was necessary to secure
more thorough accounting, by every officer or cit.
lzen, being IN The receipt of money belonging in
any wise, to the Stale of Vermont" The duty
thus imposed led to the disclosure of the following
facts Illustrative of the truth of the preceding re-
marks claim was presented to the proper board
Tor allowance, and on full consideration of the
facts, was disallowed it was Withdrawn and SUBJ
sequently presented 10 another board and allowed
Another claim was presented as above, and allowed
at Just sum, as was supposed, and the amount
was paid at the Treasury This claim was again
sum. Claims have been allowed by the General
Assembly with an express condition, that the al.
iowance shall be taken final settlement of the
claim, and in short time the same clam has again
been presented and allowed, and sometimes TO a
still greater amount
Another defect in the law before 1912, was, that
in some cases il secured no accounting from per.
sons nrusted with the public funds The direct
ors of the old VI State bank, were under bonds
ior the faithful discharge of the duties of their of.
nee" but the law had provided no board TO inspect
the conduct of those directors, and of course the
Legislature knew nothing, less or more, about the
concerns ofthat bank, than the integrity of those
directors induced them 10 disclose. The Legisla-
ture had not the means of charging those directors
with all the Stale funds coming into their hands
for il was always in their power to use those funds
to subseve their own interests, for a long time at
least before knowledge Of the TACT could avail 10
secure the public rights
Such case occurred at the MddIebury branch,
and Judgment Of about $50 900, was recovered
against the directors which was finally RENTED to
them by the Legislature and lost to the State
Here was wide space left open, which might be
occupied by corrupt and dishonest practices and
when we take into the account, that the act estab-
fishing thai bank authorized the directors to borrow
money TO fill their vaults, so that the depostes might
extend TO three hundred thousand dollars in each of
four branches. and that discounts might be made
10 three times the amount of all those authorized
deposiIes, sum equal 10 $4,000 600, and that the
faith OF the Government was pledged for the redemp-
lion oil all the paper thus put in circulation, it is
amazing, that the Legislature should have relied
upon such feeble means to protect the funds of a
treasury, all OF which ore supplied by direct taxa
ton. This bank was established in 1906, and in
1922 an agent was appointed to settle its concerns
His powers were ample ito collect all debts and de.
mands;" he was under bonds faithfully to execute
and discharge the trust sepesed in him" by the act
appointing him. But the Jaw made no provision 10
inventory the property ntrpsted to his management.
or for accounting for the funds passing into his
hands. Nor is it known. that a settlement was ey
made with one of those agents, from other data,
than those furnished by the sgent himself This is