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

Balance. ....... ........ .bb,99I 81
| On the books of the office Mr.. Gibson has
credited himself with the payment OF S97, ,65 tc
the Clerk of the department for salary previous
to December 1856. There is however, no YOU
cher for the credit on file, nor any other evidence
of his having paid it. We have therefore omit
ted it in our statement of the account
SENECA COUNTY BANK BONDS.
The accounts of the office show that there
should have been stocks to the amount of $2O9
648 IA, belonging to the Seneca County Bank
in the hands of the Treasurer. Asmay be seen
from the foregoing statement, $132, l28 IA were
missing. On inquiry into the cause of the alb
straction of this amount, we were informed by
a clerk in the office, that this amount of bonds
had been sent to New York at the request Of
the bank, for the purpose of being converted
into stocks Of different date
Though there is nothing i'll the banking law
OF lo45 authorizing any such transaction, yet We
had no reason todeubt the fairness of it until
subsequent examination showed very different
state OF facts.
One hundred thousand dollars of these bonds
had been sent to New York, accompanied with
a power of attorney from Mr.. Gibson, author-
zing their sale and transfer They had been
sold and passed into the hands OF Messrs. At
wood & Co., and Mr.. Gibson, as Treasurer OF
State, had drawn on them for S58, 500 of the
proceeds of the sale, to meet the liabilities Of
the State. This sum they "a. & Co.. claimed
as an offset, (on demand being made for the
stocks) but were willing to account for the bal
ance.
After suit had commenced, restraining them
from making any further use Of the proceeds, up
on advice of counsel it was deemed best to ad-
just their claims, release the bonds, and place
them to the credit of the bank.
This was done through the o. L. Ins. & Trust
Co., they holding bonds sufficient to indemnify
them for the amount advanced.
AT the same time, and forming part of the ar
rangement, Mr.. Gibson placed in the hands of
E. Ludlow, cashier, $4,000 drafts, falling due
in the city of New York, which were deemed
sufficient to meet the amount paid to relieve the
bonds.
Forty-two thousand dollars ofthe bonds have
been returned to the treasury, and the balance
will be returned as fast as the securities matme
and are paid.
OF the residue of the bonds, we can give no
satisfactory account
AS soon as the arrangement was known to the
bank, $32 900 OF its circulation was returned to
the treasury, thus reducing it TO the amount OF
the securities held by the State for its redemption.
THE DEFALcATIoN AND IT'sAMouNT.
A comparison of the assets found in the treas
ury with the books of the office, shows large
deficit in the public funds.
Having ascertaned this fact two questions
naturally arise
1st. What is the amount of the defalcation?
End. Who is the defaulter?
TO ascertain the amount of the defalcation, it
will be necessary to state an account from the
accession Of Mr.. Breslin on the 18th ofJan., 49,
So, to the resignation of Mr.. Gibson on the 18th
day of June, 1857. eea
The following statement, which has been pre-
pared with great care, is, we believe, an accu.
rate and explicit abstract of all the accounts Of
the Treasury Department. between the dates a.
bove named, and exhibits the true amount oft the
deialcation.
distract Of The accounts ofHt Treasury from jan
aary 12M 1852, to J'ose 1911 1856, thereby,
sho0sng he Beta'cation.