Carroll free press. [volume] (Carrollton [Ohio]) 1834-1861, 1857-09-03
REPORT ON THE DEFALCATIoN
MATTER-JoHN G. BRESLIN
PROVED TO BE GUILTY OF THE
ENTIRE EMBEZZLEMENT.
(coScIUDED.l
lcoNcLUDED.l

Ga.
tee and by the Auditor OF o,@e we,v
made early in December. Prior TO this
date the Auditor had issued to the Treas
Arer Of State drafts on the County Treas
'urerS payable on the cath Of December,
under the provisions Of the act Of 1856,
for the purpose Of meeting the January
interest on the foreign debt. OF course,
the Treasurer could not properly be char
ged with the amount ofthese drafts until
they were csshsd by the drawers. Mr..
Gibson, however, in some instances, sent
notices Of the fact that he held such drafts
'on The County Treasures, who at once
forwarded to him the whole or portion
of the sums drawn for, he still holding the
drafts. When the Committee and the
Auditor examined the Treasury, the
Treasurer produced the funds which had
been paid on the drafts, to make up the
deficiency, and the drafts themselves to
show that they had not been paid.
Ia other instances, he sent the drafts to
Banks for collection, with the request that
q certificate Of deposit for the amount
should be returned to him. These cerif
Gates were also produced to the examiners,
with statements either expressed or implied
that the drafts on which they were pre-
dicted had not been paid. In this trans
action, of course, there was nothing inn
proper in the conduct Of the Banks or of
their officers.
They have, innocently we presume, fur
nished portion Of the means by which
the deception was practised upon the sew
eral examiners. The profits Of banking,
depend. in great manner upon the time
which elapses between the issue of notes
and their presentation for payment. So
long as they are kept in circulation, the
bank is enabled to reverse the ordinary
incidents of indebtedness that is, she re-
Ceives instead of paying interest upon her
debts. 1t is, therefore matter of impor-
tance to every bank to put its notes into
circulation at distance from home, or
in places where they are likely to be re-
tained for business purposes, and not re-
turned for redemption. To accomplish
this object, and to postpone the preseOta-
ton of their paper, the banks resort to
many devices. The Treasury of our
State has been subsidiary to this purpose.
The State has been subsidized by capital
to assist in the accumulation of wealth and
the increase its profits. The banks have
deposited their notes with the Treasurer
Of State, with the promise of understand
ing from him, that they should be paid
out to the creditors of the State residing
points remote from the location of the
bank, and the funds so deposited, refUnd-
ed after It had been paid out. This testi-
mony shows that large sums were thus de-
posted, and that frequently long time
elapsed before depositors called on the
Treasurer for their money, The Treasur-
er was thus furnished with the means of
deceiving the most sagacious and aStute
examiners. He had the money always on
hand to exhibit, though not cent of it
belonged to the State, or was properly in
its Treasury. Indeed, the State seems to
have been in its pecuniary transactions,
closely allied with these Institutions
Nearly all the taxes were paid into the
Treasury through the banks. Banks were
the depositos of the State, and the credi-
tors of the State were paid by checks on
che banks. There is little in the cores
pondence of the office for several years
past to distinguish it from that of bank,
except that the writer subscribed himself
IITreasurer of State" instead of "Cash-
ier."
For the control which the banks have
exercised over the public funds, the Treas
nrers are not wholly responsible. The
Legislature Of the State has sanctioned
aud encouraged it. The act providing
for the protection Of the canals and COL
lection oftolls, requires the collector to de-
posit all money received by them in some
bank designated by the Treasurer Of
State.
The act making appropriations for the
year 1887, authorized by the County
Treasures to make their payments into
the State Treasury, by depcsiting the
gums due the State in some neighboring
Bank. The same provision was incorpo-
rated into the appropriation bills for l84l
and 1912. The law of 1916, that fruitful t
source of Mischief in our financial admin
i.traiion, has authorized the continuance
of the practice up to the present time
State Treasures have objected tie State II
t,vas from the hanks and not from the n