Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1857-08-28

/
National Road 3O52 SO
1856 S7o5i7 5S
Total ss45os7l SO
DISBURSEMENT
From Nov. Is, 1865, to June 13, 1851
General Revenue Fund s454,75l 90
Canal Fund 20959S 81
Sinking Fund sfS10l II
Common School Fund l,ls7,5so ls
District Library Fund 1852 40
National Road Fund 497 IL
2,eas.ssi ss
1857, per AUDITORS books 17s,lao as
In order to ascertain from the above
statement the true amount of tho defalca-
ton, and reconcile the discrepancies be-
tween the accounts of tho Auditor and
Treasury, it is necessary to add to the fore
going balance $l3,127 %, due repositories, !
and $4,000 81 belonging to Canal Bank
of Cleveland This would swell the bal
ance to $s56,26s 03. From this should be
deducted $104,143 10, the amount of as
sets in the Treasury on the 18th of June,
leaving balance of $752,124 "a which is
$23,374 SO greater than the balance shown
by the books of the Treasury This dis
crepancy is accounted for by the fact that
the Treasurer has credited himself with the
payment of exchange, DC, to that amount,
of which the Auditor has no account, and
which cannot bo allowed without legisla-
tive action.
How long has the deficit existedl To-
this question, the books Of the Office fur
nish no answer. 1t is not to be expected
that they would throw any light on the sub
Iject. Offenders do not voluntarily furnish
evidence of their guilt, or make record of
their crimes.
The facts and circumstances disclosed by
the witnesses who have appeared before us,
and whose testimony will be fully cxamin-
ed in another place, in the opinion of the
undersigned, clearly show that the defalca-
ton is not of recent date.
We have said in former page of the
Report, that there is no doubt that the bal
ance called for by the books of the Audi
tor and Treasurer was in the Treasury at
two different times during the past year.
We have just expressed the opinion that
/ the deficit has existed for long time priol
, to the examination made by the Joint Com.
> mittee and by the Auditor of State. How
t then, was the late Treasurer enabled to pro
duce the money or its equivalent to these
, different examinersl Whence were The
: funds procured to supply tho deficiency, ant
o conceal the defalcation? The explanation
r. is furnished by Mr.. Gibson's deposition.
# The examination by the joint Commit
e tee and by the Auditor of State were mad
/. early in December. Prior to this date tn
8 Auditor had issued to the the Treasurer {
is State drafts on the County Treasurers pay
10 able on the Oath of December, under th
If provisions of the act of 1856, for the pun
pose Of meeting the January interest o
ts the foreign debt. Of course, the Treasure
ss could not properly be charged with tn
amount of these drafts, until they wer
cashed by the drawees. Mr.. Gibson, how
ever, in some instances, sent notices of th
fact that he held such drafts TO the Count
Treasurers, who at once forwarded to hir
90 the whole or portion of the sums draw
for, he still holding the drafts. When tb
Committee and tho Auditor examined ii
IA Treasury, the Treasurer produced the func
which have been paid on the drafts to NAL
Ss % up the deficiency, and the drafts themselv
= = to show that they had not been paid.
" In other instances, he sent the drafts
Banks for collection, with the request thi
certificate of deposit for the amount shoul
be returned to him. These certificates wei
,. also produced to the examiners, with stat
ments either express or implied that Il
drafts on which they were predicted hs
not been paid. In this transaction, of cours
there was nothing improper in the condu
&, of the Banks or of their officers.
:. They have, innocently VIC presume, fu
- nished a portion of the means by which Il
90 deception was practiced upon the several Q
s.d nd aminers. The profits of banking depend,
as great manner, upon the time which Ella
ses between the issue of notes and the
presentation for payment. So long as the
are kept in circulation, the bank is anable
to reverse the ordinary incidents of indeb
edness-that is, she receives instead of pa
ss ing interest upon her debts 1T is, therefor
= . matter Of ofimportance to every bank to p
% its notes into circulation at distance fro
home, or in places where they are likely
be retained for business purposes, and not
turned for redemption. To accomplish Il
object and, to postpone the presentation
IS their paper, the banks resort to many de-
Is ces. The Treasury of our State has be-
cal subsidiary to this purpose. The State
'As been subsidized by capital to assist in Il
~ accumulation of wealth and tho increase
its profits. The banks have deposited thu
notes with tho Treasurer of State, with t
promise or understanding from him, th
Os they should be paid out to tho creditors
the State residing at points remote from t
:. location of the bank, ard the sums so
100 posted, refunded after it had been paid o
The testimony shows that large sums W,
s5 thus deposited, and that frequently 10
o. time elapsed before depositors called on [
- Treasurer for their money. The Treasu
~ was thus furnished with the means of
50 ceiying the most sagacious and astute exa
8 SO iners. He had the money always on ha
to exhibit though not cent of il belong
to the State, or was properly in its Treasu
50 Indeed, the State seems to have been in
peeuniary transactions closely allied W
these institutions. Nearly all tho Ia,
$40 were paid into the Treasury through
banks Banks were the denositoya az