Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1857-07-02
The ohio Defalcation.

discovered, does dol mouu ~ n.y.
addition to the s775,O0o of money
missing it appears that $4,000 Of bonds
deposited by the Seneca County Bank are
also not forthcoming. The new Treasurer
issues the following card:
On the 18th inst 1 published a state
ment ofthe amount of stocks in the Treas
ury, deposited to secure the circulating
of the independent Banks of-the
State, with the statement that all of these
bonds were in the Treasury except $780,
12s IA. On discovering this deficit, l
called on Mr.. Gibson, the late Treasurer,
for an explanation of this deficiency, as
compared with the books. He informed
me that they had been sent to New York,
at the request of the Bank, to be exchanged
for other bonds, TO be returned to this of
flee. On the same night I received my
appointment, l sent q messenger to New
York, with instruction TO ascertain at the
earliest moment, what funds were belong
ing to the State, or Mr.. Gibson, and imme-
diately attach the same. One hundred
thousand dollars of Ohio (six per cent..)
bonds were found in the hands of Atwood
& Co, in New York. Legal proceedings
have been commenced to procure their re-
turn to this office. Where the balance of
these bonds are, go, 12s 14) have no GER
tain information. l have ordered proceed
ings against other parties in New York,
which I hope will bring them to light.
/ have communicated these facts at the
earliest moment deemed prudent for the
bill holders and the State.
A. P. Stone, Treasurerof State.
The Cincinnati Gazette says the bonds
for $4,000 above alluded to have since
been discovered with Thomson & Co., N.
Y, where they have been hypothecated by
Gibson. The 500, 900 held by Atwood &
Co., are held as collateral security for $751;
500 over-drawn by Gibson. They have
been attached; but, to add to the compli-
cation, Gibson claims them as his own, and
a lawsuit viii result before the State can
obtain them. The Gazette says:
aThe State will probably attempt to re-
cover the bonds, but it is useless to talk
about this, if they were received by Atwood
& Co, in good faith as security for money
borrowed by Gibson. The bonds connot
imagine, be treated as stolen property.
At best, the most that can be recovered will
be the difference between the value of the
bonds and the amount for which the latter
are held as security. The next question
that arises is with reference to the liability
of the State for notes of the Seneca Bank
secured by the missing bonds. A case
somewhat similar to this occurred in Indi-
ana last winter. 1t was not brought
before the Court, but the Attorney Gener-
al gave his opinion that the Stste was not
liable, and the Legislature, then in session,
passed a resolution in accordance there
with. As to the law involved in this ques-
ton, were not prepared 10 express our
opinion, but the moral obligation, we think
is very plain. The State should assume
the liability and redeem the notes. This,
however, will be a matter for the Legisla-
ture to decide. We would advise the hold
ers of the notes not to part with them for
the present at a sacrifice. The assets are
pretty generally known, and the notes cam
not at worst become of less value than at
present, while they may be redeemed in full.
"a gentleman who left Tiffin on Mon
day evening, informed us yesterday that
the people were very much excited, end
threatened to lynch Gibson upon his return
from New York. The closing of the bank,
and the absence of the securities had STIR
red up their worst passions. Had Gibson
been wise be would have avoided this bank
difficulty. Experience has shown that
while the people will quietly submit to in
direct robbery, such as was practiced in de-
plotting the Treasury, they will not bear to
be stolen from directly. The failure of a
bank strikes home to the pockets"
So much for Mr.. Gibson. The question
with regard to Mr.. Breslin is what did he
with the $575,OOo out of which he cheated
the State. All sorts of surmises are ~aioat,
and many think that "wild cat" banking
and st. Faro have been deeply involved in
its mysterious disappearance. The Gin
cinnati Commercial has its theory, which
it expresses thus:
at is not impossible that Mi. Breslin and
those with whom he has counseled have,
in a good many transactions, mistaken the
Treasury of Ohio for that of the Demo-
cratic party, and employed, at least some
of the missing moneys in keeping up the
efficiency and maintaining the purity Of the
Democratic organization. Although not
directly avowed, the ethics Of the
party formany years have tended TO institute
such a practice; and nothing is more COM
mon than to find our Democratic patriots
assuming that having possession of the
Government, their right is complete to
whatever through its means is drawn from
the people-that suffrage is consent; and
when the people annually submit to be rob
bed, there is no crime in committing the
robbery.
at takes q great deal Of money to sup
port the body Of e%xtravagant, whisky-drink-
ing patriots that has for halfa generation
of men been the centre of the Democratic
party in Ohio, and nothing has been more
to such as have some knowledge of
the cost or living, that there must have
been some fountain of cash more copious
in its products than any known streams of
official emoIument. That a portion ofthe
lost funds went to replenish the exhaust
ing finances of these gentry, we have no