Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1857-07-02
MLLERsBURG HOLMES COUNTY oHIo THURSDAY JULY

IL ~ ANIL IA u w - -
About the Peoples Money
: HOW FUNDS WERE USED! a's
LIGHT BREAKINGN I!
Breslin Treasurer and Brcslin
,rgis wild Cat Bankcra 2,.asg,
The following article from the Denton
caroline county, Md.) Joarnal. with re-
ference to the Greensborougha Bank, was
published in September 1856. 1t is,
therefore, somewhat old, but it is ne: erthe-
less interesting. 1t shows very clearly the
disposition made of a portion of the peo-
pies money by the anti-Bank Democratic
Treasurer, J. G. Breslin. He used the pub
lie money for the purpose of swindling the
community by means of Wild Cat Banks
so it appears. The following sketch will
prove more entertaining just at this time
than the most exciting chapter in Dickens
last novel; - --,,s ,., r...,.'.-..,. o. --,
TIE GREERSBOROUGH BANK. o.
The Bank was organized January, 1855.
Twenty-Five thousand dollars in coin were
fu. ni:hed for that purpose y John G. Bres-
lin, then in the State Treasurer of Ohio
with whom the owner of the Bank had
made contract by which Breslin was to
have the use of seventy-five thousand dol
lars of the Banks circulation for one year; !;
and for which Breslin gave his note for
that amount, and due twelve months from
that date, On the back of the note was
Waggoner's endorse of above twenty-five
thousand dollars. '
But in order that the Bank could COM
ply with his specifications of the note, and
be able to furnish Breslin with the seventy
five thousand dollars of its circulation,
some means must be invented by which
forty thousand dollars of its capital stock
could be paid out of the t,uentyJfre thou
sand dollars coin and then there would be
left for the use of the Bank only fire thou
sand dollars of its circulation. Mr.. Breslin
knew, of Notwithstanding he was
very keen financial man, and had all the
funds of the great State of Ohio under his
control, and had been extensively engaged
in putting into operation "Wild Catp
Banks-that this would be rather a diff
cult operation, to expand twenty-five
thousand dollars coin into FORTY THOUSAND
dollars CAPITAL STocK, and have the trans
action HONEST, the ends of law and justice
answered, and the condition Of the CHAR
TER COMPLIED WITH. All this difficulty,
however, was soon disposed of by the pro-
Life brain of Mr.. Breslin. The mechanics
Bank of Memphis" Tenn, another "Wild
Cat,"-for which Mr.. Breslin had furnished
the money and controlled, and whose notes
were then selling at discount of only SIX
TY PER cENT-could be used to great ad-
vantage in this new enterprize.
Mr.. b. E. Smith, broker of Columbus,
o., was the man of all others, selected by
Mr.. Breslin to conduct this important f.
nancial operation. He was, therefore, load
ed up with twenty-five thousand dollars
COIN, and fifteen thousand dollars notes of
the Memphis Bank, and sent off on his
mission to "organize The Farmers and
Merchants Bank of Greensborough," Md.
The Commissioners opened the books,
aud the whole capital stock was taken by
s. Waggoner and Henry Waggoner.-l
Twenty thousand dollars in COIN, the first
was paid to the Commissioners.
The stockholder (for there was but one
there) then elected his Directors, aud the
Bank was ready for operation. Ths Com
missioners then paid the twenty thousand
dollars over to the directors, or in, other
words to Mr.. Waggoner; and Mr.. Smith
again received it into his possession.
Then came the very nice operation of
Gold Expansion. Twenty Thousand had
been paid to the commissioners, and i've
thousand was all the stockholders had left.
Forty thousand must be paid, SO that Mr..
Breslin could have his sever, ,y.fve thousand
dollars circulation. So by some kind of
Hocus Pocus in Mr.. Smiths room, in which
all these funds were kept, the fifteen thou
sand dollars "Memphis Notes. were ex-
changed for the same amount of coin, out
Of the twenty thousand paid the day pre-
gious to the commissioners, on the first in
and the whole was done; and
hey in possession of the second twenty
thousand dollars, coin, to pay the second
nstalment and increase at once the capital |
stock of forty thousand dollars. The sec
,nd payment was made to the directors in
, room adjoining that of Mr.. Smith. The
meeting was held at 10 o'clock, P. NJ, at
which only three directors were present
Vi. Smith was there of course, and aided |
;ery materially in the exercise of the eve
ming. -.--.t tr---.....
The fifteen thousand dollars of the |
Memphis notes" were left on special de-
,osit. Mr.. Smith. to carry out the in
tructions of Mr.. Breslin, took away with
lim fifteen thousand dollars of the coin for
which Mr.. W., gave his check. This left
,ut ten thousand dollars for the Bank and
n place of that, Mr.. Smith took ten thou
and dollars of the notes of the newly or
.anized Bank. Then there arose difficult
y in making the liabilities and assets count
DIRECTLY. 1t would read thus: - i
~ Liabilities. Assets.
,apital stock $4,000 Coin $4,000
deposits. $4,000 waggoner's Ch'k $4,000
circulation l0,D00 Pei 7sbi--t 4-s eH
Total. :. $65, 600 Total. sa5,00o
leaving a sad deficiency of forty thousand
ollars, or Just the amount of the so-called
aid capital. Then it was concluded to say