Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1856-07-03
Y..FRIDA JULY 3.1s 4

deferred its publication until such time as we
could have more correct estimate of the au-
thenticity of its statements. We present it now
to our readers, with much confidence to the
reliability of the from which it comes, and
feeling quite sure that the numerous friends Of
Dr. Bates in this county, of which he is native
Will be rejoiced TO peruse document which i
Illustrates, in so clear and conclusive a manner
that there are two sides to every story, and that
the late State Treasurer of California is not after
all, the unmtigated swindler that he has been
represented by the California newspapers, and by
interested letter writers from the Golden State
to the newspaper press of the Atlantic cities-
SACRAMENTO, February IS 1857
Editors SPy:-Athough stranger to yourself, still
as son OF old Massachusetts" AMI reader
and friend of valuable and widely circulated
ter herein contained which may prove embarrassing
70 yourself the patrons of your excellent Journal
While living at Boston, the Worcester Spy was always
fsvorite paper of mine, and being myself disciple
OF Faust well having been long connected with the
editorial profession, though now out, feel more at
nome In addressing you this communication than
would with any other paper in the Commonwealth espec
tally as the gentleman in whose behalf wIe is fel.
low townsman Of yours, former resident of Worcester
The mail which conveys this letter you will also
ry the intelligence to the Atlantic side, of the agn-
ment before the bar of the Senate of this State of two
our state officers, who have been charged with NAL
feasance ia Office before that body of the assembly and
their impeachment demanded. One Of these officers is
DIR. Henry Bates, Treasurer Of State and is, have
before intim ated, fellow of yours. and the
other il Col. George W. Whitman Co ltroler oil State
As these charges far founded wholly upon er
pdrte testimony, and circumstanal evidence alole
have felt it my duty friend to Dr. Bates, know
ing him well and intimately to apprz9 you Of the real
facts Of this ISSUE before the Senate his friends
and relations at his old home should feel panied a d
alarmed at the version of the they will receive this
mail through the newspapers of this State 1t has heen
apty said, by writer, in words call
mind that aiseh0od flies faster than truth, and hence
you will perhaps receive the sided of these
prosecutions against State officers in advance of this
letter of mine.
1t doubtless known you that the debt Of this State
has been annually funded from 1851 1856 According
to the annual report of the Conror of State just made
to the Legislature, this funded debt amounted in the
aggregate the 18th of December 1856, to So $780,
$3.50, and this exclusive of Indian War Debt.
Upon this amount California pays interest
OF $225 6l23 nearly all of which goes Toto the pockets
OF njnresidents of the State 1t is also probably well
known to you that Constitution prohibits the
tons Of State debt $500 000 and that our Supreme
court has recently decided State debt exceeding this
amount to be contracted and is therefore null and voil
This, OF course, has created CONSERVATION and dsmsy
among the bond holders State indebtedness in the
Alta tic States and reflected discred and dishonor
our State though the decision Of the Supreme Court
right and just.
1t is also well known fact that ontwo several occa-
slons, the State OF California has failed pay promptly
the interest on her debt through the failure do
her financial agents to whom she had entrusted the
money and agenCy for the payment of this interest.
Once and Tor the first time, this failure tie inter-
est on the day it was due IN New York, occasoned
by the non-arriv in time of the money from here
by the agents Of the State The second time it was owing
to the utter aud criminal failure Of the agents
to pay the interest at all, after having received the
money from DR. Bates, the State Treasurer and given
bonds for the faithful performance of contract For
this failure the bondsmsn OF the defaulting agents
now being sued by the State, aud the money will be
recovered In both of these instances of failure
the mt rtupon the eeot at the time it was due the State
of California remeaed the negligence and dealcation of
her ents as speedily as possible by providing for the
payment OF the through other agents. though did
not aave discredit dshonor from being cast upon
credit abroad
1t Is fact also, that every succeeding Legislature
appears more lavish and wastefdi of the public
moneys and less regardless of running the State by debt
than its predecessor On this subject the Controller in
his late report, says:-
1t will appear by reference to my accompanying Re-
port ha our State debt has been regularly accommodating
ever since Cafo MIA had organized existence. The
favorite remedy for this growing evil and promote
return to 70 lsh basis our ndaueal con Germs has
been the passage of Funding Acts and that too, with
out providing for either reduction OF expenditures
increase of revenue'
The Report says further:-
1t mus now be evident to all, who have devoted
thought to the subject that the necessary expenses of
the government are dsproporoned its
enue The expenditure for the fiscal year, ending the
Both Of Of June, 1858 amounted to $136s 6s4 sl whilst
the receipts only amounted to $723 49, showing an
excess Of expenditures over receipts of b645 394 9S
Nov the government Of the State for the year 1885,
expenditures to nearly million and half was of the
reform party-the American party in The full tide of
its first AID last success in this State This party came
into power carried the State election of 1855 the issue
OF retreuchment and relorm,n yet find Il a: scarce
half year had elapsed of its adminstrai of the
affairs OF State during which, session of the Legislature
was held composed of its " reform material When
according to thu official report of their Sat Jontrol-
Ter, they managed to eXpend million and half ollars
to be added to the already immense debt of ths State
All ths enormous expenditure for the fiscal year end
ing June no. 1855 is chargeablc the Know Nothing
Legislature Of that year. and far excee5ed in wastefu ex
travagance any previous session.
Acc riding to thevarious Funding Acts and particularly
that OF 1886 the payment Of interest upon our State debt
made To occur sem-snnualy, the first dayg Jan
airy and July of each year. either in the cities
New York; San francisco, or At the State Treasures
office.
Section 9th of the Funding Act makes it he duty Il
quoted the exct words) of the Treasurer of State 10
make arrangements for the payment Of the interest of the
said bon is when the same falls due and the sal il
Treasurer authorized and required make such con,
tracts and arrangements may be ssary for the
payment OF said interest aud the protect of the credit
Of the State"
Under the above view of all the circumstances Of the
financial condition Of State affairs, the prospect If
the reputation OF State debt stating him in the face
the two previous failures meet promptly the OF
the interest on State debt the fact that the eighth
session Of the Legislature of California abont meet
and probably do as its predecessors uniformly DONE
plunge the Stata still deeper in debt and lesv at the
close oil the session not dollar in the vaults of the
treasury, all contributed to determine DR.. Bates,
Treasurer OF Btae to provide ia tine for the pay Of
the July interest oil this year In pursuance OF this
determination and in accordance with the law, he
contract with the Pacific Express Company to pay the
July interest upon the state debt New York paying to
said Express Company the of solid interest one
hundred and twenty four Thousand doars and taking
their bonds as surees for the faithful performance of the
contract The suretes which the Express Company gave
were good and reliable men, of them Judge Hyden,
feldt OF the Supreme Court This contract made,
signed and sealed the third day of January 1857 two
days prior to the meeting Of the Legislature iuclose
you the printed FORM of the contract, as well the
memorandum Of agreement between the Pacific Express
Company and The Treasurer of State, that you may
with what care ald fidelity the Bate Treasurer made the
necessary arrangements or the payment said interest
and the protection of the credit Of the Stae required
Of him by the FuodiDg law. 1t his intention TINT
there should be no failure this time in the payment of the
aforesaid interest, and hence he made the arrangements
some three or four months in advance of the time
OF prOydng Tor the OF the ni-annua interest,"
there being no provision Of Law restraining him from SO
doing and the first failure that Of 1854 Of meeting the
payment OF the interest having occurred under his pre-
decessor IN consequence of the money not being forwarded
to New York in time.
Soon after the meeting of the Legislature was ascer
tanned that Dr. Bates had taken this responsibility upon
himself to preserve the credit Of the State by making
arrangements far in advance for the said payment
the interest," and gave much dissatisfaction 10 certain
parties here as did the act Of responsibility which Gen.
jackson assumed on removing the deposits from the
United States Bank The this dissatisfaction,
were not however, simply from the fact that the Treasurer
had no power or right to make such arrangements the
time he did, for that could not be denied him. But the
money not in the State Treasury, where it could be
gotten hold Of and perhaps squandered BY interested
parties in and out Of the Legislature 1t safe from
their clutches, and set apart In safe hands 10 meet
the semi annual payment Of interest State debt
though several months in advance Had the State Treas
urer not assumed this responsibility, 1t is than
likely that the money would have been squandered
by the Legislature and when the last moment arrived for
providing for the payment Of annual interest
the funds would not havebe forhcomng for the very
good reason that they were not in the State Treasury
and our State would have again. and Tor the third
time, been disIraced and dishonored.
The fact however that the State