Worcester daily spy. [volume] (Worcester [Mass.]) 1850-1888, 1857-07-03

personal acquaintance with the writer, we have
deferred its publication until such time as we
could have a more correct estimate of the au-
thenticity of its statements. We present it now
to our readers, with much confidence as to the
reliability Of the source from which it comes, and
feeling quite sure that the numerous friends of
DR.. Bates in this county, of which he is a native,
will be rejoiced TO peruse document which il
Illustrates, in so clear and conclusive a manner,
that there are two sides to every story, and that
the late State Treasurer OF California is not, after
all, the unmitigated swindler that he has been
represented by the California newspapers, and by
interested letter.writers from the Golden State,
to the newspaper press Of the Atlantic cities:--
SACRAMENTO February IS, 1857.
Editors Although stranger to yourself still
OF old Massa chusetts and constant reader
and friend Of your valuable and widely circulated paper
feel 1t liberty address you upon the subject mat
ter herein contained which may not prove unnteresng
to yourself the patrons of your excellent Journal
While living at Boston, the Worcester Spy always
faYorte paper Of mine, and being myself disciple
of Faust we'll having been long connected with the
editorial profession, though out feel more at
home" in addressing you this communication than
would with any other paper ia the Commonwealth espec-
tally the gent in whose behalf write a fel
low townsmsn OF yours former re dent Of Worcester
The mail which this letter you will also ca
the intelligence to the Atlantic side, of the aaign-
ment before the bar Of the Senate of this State Of
State officers, who have been charged with NAL
fsasauce il office before that body Of the assembly, and
their Impeachment demanded. One of these officers is
Dr. Henry Bates, Treasurer of State and is, have
before intmated, fellow t,wnsman of yours. and the
other is Col George w. Whitman, Controller oil State
As these charges far founded wholly upon er
parte testimony, and circumstantial evidence alole
have felt it my duty as friend to DR.. Bates, know
ing him well and Intimately to apprize you Of the real
facts of this issue. before the Senate lest his friends
md atto his old hop,a ehnu fool 4
alarmed at the of the they will receive This
mail through the newspapers of this State 1t has been
apty said by writer in words cannot call to
mind that faisehood flies faster than truth, and hence
you will perhaps receive the sided of these
prosecutions against State officers in advance OF this
letter of min.
1t doubtless known to you that the debt Of this State
has been annually funded from 1851 1855 According
to the annual report of the Control State Just made
to the Legislature this funded debt amounted in the
aggregate on the 18th of December 1885, TO So $780,,
1885, and this exclusive of Indian War Debt.
Upon this amount California pays annual interest
Of $25 6I23 nearly alt OF which goes the pockets
of nnresidsnts of the State. 1t is also probably well
known to you that Constitution prohibits the contra,
lions of State debt $500 000 and that Supreme
Court has recently decided State debt eding this
amount to be contracted and is therefore null and voi
This Of course, has created CONSERVATION and dismsy
among the bond holders of State Indebtedness the
Alta tic States aud reflected dscredt and dshonor upon
State though the decision Of the Supreme Court
right and just.
1t is also wen known fact that ontwo several occa-
ptate OF Calornla mas falled 10
the interest her debt, through the failure to do Of
her financial agents to whom she had entrusted the
money and agenDy for the payment of this interest
Once, and Tor the first time this failure TO the inter-
est on the day it due New Fork occasioned
by the non-arriv in time Of the money from
by the agents of the State. The second time owing
to the utter aud criminal failure of the agents
to pay the interest at ALL after having received the
money romDr Bates, the State Treasurer, and given
bonds for the faithful performance of the contract For
This failure the bondsmsn o. the defaultng agents
now being sued by the State, and the money will be
recovered In both of these instances of failure to
then rtupon the tebt at the Time it due the State
OF California remedied the negligence and dealcation of
her ag ants as speedily possible by providing for the
payment OF the through other agents. though did
not nave dscredt dlsh5nor fiom being cast upon
credit. abroad
1t Is fact, also that every succeeding Legislature
appears to be lavish and wastefu of the public
moneys and less regardless of uuing the State by debt
than " predecessor On this subjsct the Controller in
bis late report, says
" II will appear by reference to my Accompanying Re-
port Ina State debt has been reguarly accommodating
ever sinee California had organized existence The
fayorite remedy fo this gr wing evil, promote
return to "e ISL basis, for aaansRl erns has
been the passage Of Funding Acts and that too with
out providing for either reduction Of expenditures or an
| Increase Of revenue"
| The Report says further:-
/" 1t now be evideot to sll, who have devoted
thought to the subject that the necessary expenses
the government are dspropooned it's sources of
s6ae Ihe expenditure for the sca esr ending the
50th OF Of June, 1890 amounted to $I36S6S4 S1 whilst
the receipts only amounted $723 $50 So showing an
excess of expenditures over receipts of s645 394 SO
Nov the government Of the State for the year 1856
and the Legislature Of this year. which sweled the
expenditures to nearly million and half was of the
reform" partythe American party in The full tide of
its first AID last success in this State This party came
into power, carried the Slate election OF 1855 on the issue
of retreuchmen and reform" yet we and that scarce
half year had elapsed of its administration OF thu
affairs of State, during which, session of the legislature
was held, composed of its own " reform matefi4 when
according to the official report of their Control
Ter, they managed to expend million and half olars,
req iYnroaF dah ~ rl,s
All this enormous expenditure for the fiscal year
ing June TO- 1856 is chargeable to the Know Nothing
Legislature of that year. and wasteful e
uaYagance any previous session.
Acc riding to the various Funding Acts and particularly
that Of 1856 the payment of interest upon State debt
is made 70 occur semi-snnuay, the first day. jan
airy and July Of each year. payable either in the cities OF
New York, San Francisco or OF the State Treasurers
office.
Section 9th, of the Funding Act makes It the duty II
quoted the ex act words) of the Treasurer of State to
make arrangements for the payment Of the interest of the
said bonus when the falls due, and the said
Treasurer authorized and required to make such con-
tracts and arrangements as may be ssary for the
payment Of said interest and the protect of the credit
of the State.n
Under the above view Of all the circumstances OF the
financial condition Of State sff4rs, the prospect Ct
the Reputation Of State stating him in the face
the two previous failures meet p ompy the payment Of
the interest on our state debt the fact that the eighth
session of the Legislature California was abon to meet
and probably do its predecessors have uniformly DONE
plunge the state still deeper 10 debt and lie at the
SNHSS
Treasury, all contributed to determine Dr. Bates as
Treasurer Of State provide in time for the payment Of
the July interest Of this year In pursuance OF this
determination and in accordance with the law he made
contract with the Pacific Express Company To pay the
July interest upon this State at New York paying to
SAID Express Company the amount o'soid interest
hundred and twenty four Thousand dollars, and taking
their bonds as sureties for the faithful performance the
contract The sureties which Express Company gave
were good and reliable men, of them, Judge Hyden
feldt, of the Supreme Court. This contract was made
signed aod sealed the third day January 1851
days prior to the meeting of the Legislature ncose
you the printed form of the contract, well the
memorandum OF agreement between the Pacific Express
Company and the Treasurer Of State that you may see
with what care fidelity the State Treasurer made the
necessary arrangements or the payment of said interest
and the protection OF the credit Of the Sate required
of him by the Funding law. 1t was his intention that
there should be failure this time in the payment the
Aforesaid interest, and hence he made the arrangements
some three or iour months in advance OF the usual time
OF providing for the payment Of the nannual interest,"
there being provision Of Law restraining him from
doing and the hrst failure that OF 1854 Of meeting the
payment OF the interest having occurred under his pre-
consequences Of the money being OrRaCded
10 New York In time
Soon after the meeting Of The Legislature was ascer
tanned that Dr. Bates had taken this responsibility upon
himself TO preserve The credit Of the State by making
arrangements 30 far in advance for the said payment OF
the interest," and It gave as much dissatisfaction 10 certain
parties here as DID the act Of responsibility which Gen.
jackson assumed on removing the deposits from the
United States Bank The this dissatisfaction,
not however, simply from the fact that Treasurer
had no power or right to make such arrangements at the
time he did, for that could not be denied him But the
money was not In thesa Treasury, where II could be
gotten hold Of and perhaps squandered by interested
parties in and out Of the Legislature It safe from
their clutches, and set apart in safe hands TO meet
the semdnnua payment Of interest our State debt,
though several months 10 advance Had the State Treas
not assumed this responsibility 1t Is more than
likely that the money would have been squandered
by the legislature and when the last moment arrived for
providing for the payment Of semi annual interest
the fluids would not have been forthcoming for the very
good reason that they not IN the State Treasury