The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1857-08-28

Report, that there is no doubt that the ba
snce called for by the books Of the Auditt
and Treasurer, was in the Treasury, at tw
different times during the past year. W
have i1st expressed the opinion that the d,
felt has existed for long time prior to II
examinations made by the Joint Committe
and by the Auditor Of State. How, ther
was the Treasurer enabled to produce Il
money OF its equivalent to thes differei
examinersl Whence were the funds pr
cured 10 supply the deficiency and conce
the defalcationl The explanation is fu
nished by Mr.. Gibson's deposition.
The examinations by the Joint committt
nd by the Auditor of State, were mad
early in December. Prior TO this date, u
Auditor had issued TO the Treasurer Of Stat
drafts on the County Treasurers payable Q
the Goth Of December, under the provision
of the Act of 1856, for the purpose ofmeetir
the January Interest on the foreign debt
! o course, the Treasurer could not proper
be charged with the amount Of these draf.
until they were csshed by the drawees'
Mr.. Gibson, however, in some instance
sent notices Of the fact that he held suo
drafts TO the County Treasurers, who ,
once forwarded TO him the whole or poi
tion Of the sum drawn for, he still holdin
the draft. When the Committee and the Au
ditor examined the Treasury, the Trea.
urer Produced the funds which had bee
paid on drafts to make up the deficiency
and the drafts themselves to show that the
had not been paid.
In other instances, lie sent the drafts I
Banks for collection, with the reqest that
certificate OF deposit for the amount shoul
be returned to him. These certificates wer
also produced to the examiner, with tn
statements, either express or implied, tina
the drafts on which they were predicate,
had not been paid. In this transaction, o
course, there was nothing improper in tn,
conduc, OF the Banks or Of their officers.-
They have, innocently we presume, furnish
ed portion of the means by which this de
ception was practiced upon the several ex
aminers.
The profits OF banking depend, in grea
measure, upon the time which elapses be
tween the issuing OF notes and their pres
entation for payment. So long as they ar
kept in circulation. the Bank is enabled 4
reverse the ordinary incidents ofindebt' mes
that she receives, instead Of paying int
rest upon her debts. 1t is, therefore, a mat
ter of Importance to every Bank TO put it
notes into circulation at distance from
home, or in places where they are likely {,
be retained for business purposes and no
returned for redemption. To accomplish
this object and to postpone the presentation
Of their paper, the Banks resort to man,
devices. The Treasury Of our State has beer
male subsidiary to this purpose. The Stat,
has been subsld ised by capital to assist il
the accumulaticno Of wealth and the increase
OF its profits. The Banks have deposited
a l... Ia tl..r ~ a
the promise or understanding from him
that they should be paid Quito the creditor
Of the State residing at points remote from
the Banks; and the sum so deposited, refund
ed after it had been paid out. The testimo
ny shows that large sums were thus depost
ed, and that frequently long time elapsed
before depositors called on the Treasure
for their money.
The Treasurer was thus furnished will
the means of dccelying the most sagaciou
and as sstute examiner. He had money al
ways on hand to exhibit, though not cen
of il belonged to the State, or was propeerl
in the Treasury. Indeed, the State seem
to have been, in its pecuniacy Transitions
closely. allied with these institutions
Nearly all OF the taxes were paid into tn
Treasury thro' the Banks. Banks wer
the repositories Of the State, and the cred
itors olthe State were paid by cheeks on tn
Banks. There is little in the correspondence
ofthe office for several past. year to dIstngis
il fro I hat of a Bank, except that the write
subscribed himself Treasurer of State
instead OF cashier"
For the control which the Banks have er
ercised over the public funds, the Treasurer
are not wholly responsible. The Legis
laiion OF the State hos sanctioned and EN-
couraged it.
The act providing for the protection OF tn
canal and the collection Of tolls, require
the Collectors to deposit all money, receive
by them, in some Bank designated by til
Treasurer of Stale.
The act making appropriations for tn
year 1889, authorized the County Treasurer
10 make their payments into the State Treas
ury by depositing the sums due the State /
some neighboring Bank. The same provls
ion was incorporated into the appropriate o
bill for tS4I and "a. The law OF / SAC, tina
fruitful source Of mischief in our financial
administration, has authorized the contin
uance ofthe practice up to the present time
State Treasurers have collected the Stat
taxes from the Banks aud not from tn
County Treasurer.
Mr.. Gibson says that he resorte,
to borrowing in order to meet the dc
mands on the Treasury and concea
the deficit. lit is true that he re
ceived but 1903, 900 from Mr.. Bres
lin, the books of the Office corrobat
his declaration. The balance IN th
Treasury on the 18th of Novembe
last was $3.50, ,54s 50. If Mr.. Brea
lin owed, at that time, $3.50, 900, Nj
Gibson must have borrowed nearl
100000.
Notwithstanding the act of Apr
sth, 1856, forbids it, the practice {
receiving deposits and issuing certi
icates still continued, and furnishe
a portion of the funds by which tn
Joint Committee and the Audito
were deceived in regard to the con
dition of the Treasury. The holder
of draft on the Treasury, on pre-
senting it for payment, instead {
the money received q certificate q
deposit, signed by the Treasurer, 70
the amount. The draft would pas
into the Treasury and be credited O
the books. The balance in tn
Treasury would be thus apparentl
diminished, though it actually re
mained the same. Certificates, il
sued under these circumstances
amounting to $775,00, are now ou,
standing.
With all these resources at hi
command, it is not at all surprisin
that the late Treasurer succeeded i
concealing the defalcation.
There was no obstacle to the us
of The money of the State by M
Breslin, nor was any effort, on b
part, necessary 10 conceal . detici
There was no thorough examinatio
Of the Treasury during his term I