The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1857-08-27
A REPORT

0ho SN"ihiii@sioh iequilSu Dy odlu dCCoianu neIe'
: with submit
.te7a5 ea AIRPORT
Z. of their examination, and of the actual condi
tiontf the Treasurer on the 10th Of June last
~ The duties of the undersigned, as set forth in
the acts above mentioned, are as follows:
LIST. Carefully to count all moneys, of every
kind, in the Treasury.
Rnd. Personally and carefully to examine the
book accounts, vouchers and official correspon-
dence Of the Treasury, relating to the receipt,
custody and disbursement of the moneys of the
State, or any part thereof
Sd. To compare the same with the books,
accounts and vouchers in the Auditors office, or
with proper abstracts thereof
4th, TO examine and take copies of full de-
scriptions of all drafts, bills of exchange, cert-
ficates Of deposit, and other evidences of debt
due to or belonging to the Treasury.
5th., To ascertain the sums or balances actu
ally due the State on account of moneys depos-
lted or kept elsewhere than in the Treasury Of
flee in Columbus; the responsibility of the de-
positors thereof and the terms and conditions
on which such deposits shall have been made.
And 9th, In consequence Of recent dis
closure of heavy deficit in the funds OF the
Treasury, there is necessarily imposed the fur
ther and more ardurous duty of ascertaining the
extent and the author or authors oft.
There was no law in this State requiring thor
ough, periodical examinations of the Treasury.
until the passage of the act of April 8th, 1856
which was improved and made more stringent
by the Supplementary act of March Both, 1857
Previous to the passage of these acts, eXami-
nations hade been made at long and irregular
periods by committees of the legislature, and
by special commissioners appointed by Joint
resolutions of the General Assembly.
Since the passage of the acts above mentioned
several examinations ofthe Treasury have been
made. Cotcmporaneous with the enactment of
the law of 1857, the Senate appointed a com
mittee consisting ofMessrs. Kelley, Marsh Tay-
lor and Buckland, and instructed them to in.
-qure INTO the condition OF the Treasury its
funds and accounts. They reported to the SEN
ate on the 7th Of April and the act alluded to
passed on the day following. The Legislative
duties Of the members did not permit them to
make critical and thorough examination of the
Treasury. They relied upon the statements
of the Treasurer as to the condition of the funds
and nothing was elected showing that they were
not under his control. On the llth of April,
1866, an act was passed, constituting one mem-
ber of the Senate and two members of the
House of Representatives "a Joint committee of
the General Assembly on Finance" and reQui-
ring them during the recess IF the Legislature,
"to investigate all the transactions of the pub
lie agents who have or heretofore have had the
eustodyor disbursement of the public moneys
or any part thereof and to report at the adjour-
ned session the result of the investigation, and
the true condition Of the finances Of the State"
This committee was occupied during the whole
summer in the discharge of its duties and made
an elaborate report to the Senate on the Both
aF Ia MI, G,il tate
mcnt of the condition of the funds of the State
on the 18th of December preceding There
was apparently no deficiency in the funds of the
State at that time.
& The Auditor Of State made an examination
of the Treasury in November 1856, as required
by the act of April 8th Of that year. Having
in the earlier part OF his report stated the cash
balance in the Treasury on the 18th Of Novem
her to be $3.50, $50 G3. At the close of tho
same document he says. "The amount of the
available balance in the Treasury on the 18th
November, 1856, has been stated in preceding
page. deem it proper te say that the accuracy
of the amount reported was ascertaned not on
ly by the books Of his office and those of the
Treasury Department, but by personal eXami-
nation and count Of the funds in the Treasurer's
vaults, ss required by the provisions of the act
OF April 9th, 1856, prescribing the duties ofthe
Auditor and Treasurer of State relative to the
receipt safe keeping and disbursement of the
public moneys and accounting therefor, and in
accordance with the special provisions of the
18th section of said act.''
1t is clear that there has been no lack Of
vigilance in guarding the Treasury. The num-
ber Of examinations during the year was unusl-
ally large. The ability and experience devoted
to them we're much greater than this kind o
service and 20 npensation for it generally com
mand.
1t isgenerally clear that each and all of these
investigations failed to expose any serious off
cial misconduct on the part Of the Treasurer
or any deialcation in the funds of the State. At
the two last examinations the sums reported
were found to be on hand or satisfactorily ac-
counted for, money, drafts, or other evidences
OF debt werese Exhibited corresponding in amount
with the balance shown by the books of the
Auditor and Treasurer. The Joint Committee
and the Auditor each counted the money and
certificates Of deposit.
The manner in which these examinations
were conducted, the time devoted to one of
them, and the character and standing of the
gentlemen engaged nall of them, were such as
to inspire confidence, and to preclude the sus-
picion Of wrong No one, not participant in
the fraud, had right to question the facts set
forth in the reports OF these several inyestiga-
tions
We have no hesitation in saying that the ex-
an,ineIs were deceived, as to the true condition
of the Treasury. The manner in which they
/. were deceived, and the means by which the
Treasurer was enabled successfully to impose
the deception upon them, we will consider and
explain hereafter.
The reports Of the Joint Committee and Of
the Auditor of State were made after the pas
sage Of the act of 1856, which required but a
single examination between the lst Of Septem-
ber and the LIST of November, in each year
The supplemental act ol March 30th, 1857, re-
qured quarterly examinations by the Auditor,
and some one appointed by the Governor
The present report is made in pursuance Of
the last named act.
Condition Of the Treasury June 18th 1857.
The undersigned, together with Wm. D,n-
nison, Jr., Esq, were present at the opening of
the vault of the Treasury by A. p. Stone, the
present Treasurer, on the 10th of June. and as
sisted in the counting Of the funds, drafts. and
other evidences Of debt due the State.
The following statement exhibits all the mo
ney and assets found in the treasury at the
above date, which passed into the hands Of the
present State Treasurer:
DErosIToRIEs
The following statement exhibits the condi-
ton Of the accounts with the depositaries ofI
the public funds:
Sundry Repositories IN account Nth VIII. Glib
son, 1fcasmeSof State.