The Tiffin tribune. [volume] (Tiffin, Ohio) 1848-1859, 1857-09-04
Report Of the DofalOatlOn matter.
JOIN d. RREsLTN
Proved 20 be Guilty Ofthe Entire Embsz-
element.
Concluded

{ (Conciaded)
Thy have, innooently Wo presume.
furnished portion Of the means by
which the deception was practiced upon
the several examiners The profits Of
barking, depend. in great measure.
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
tho ordinary iuoidents Of indebtedness
that is, she receives instead of paying
interest upon her debts. It is, therefore,
matter Of importance to every bank to
put its notes into circulation at a distance
from home, or in places where they are
likely to be retained for business purpos.
es, aad not returned for redemption. To
accomplish this object, and to postpone
the presentation 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 Of its profits.
The banks have deposited heir notes
with the Treasurer Of State, with the
promise or understanding from him that
they should be paid out to the creditors
of the State residing at points remote
from the location Of the bank, aud the
funds so deposited, refunded after IL hap
been paid oIt. The testimony shows
that large sums were thus deposited, and
that frequently a long time elapsed be.
fore the depositors called on the Treasur.
er for their money. The treasurer was
thus furnished with the means of deceiv-
ing the most sagacious and astute exam
iners. 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 paiG into the
Treasury through the banks. Banks
were the repositories Of the State, and the
creditors of the State we're paid by
checks on the banks, There is little in
the correspondence of the Office for seve-
raj years past to distinguish it from that
Of bank, except that the writer sub
scribed himself " Treasurer of State"
instead of !" Cashier"
For the control which the banks have
exercised over the public funds, the
Treasurers are not wholly responsible.
The Legislature of the State has sane
toned aud encouraged it. The act pro-
viding for the protection or the canals
and collection Of tolls, requires the col
ector to deposit all money received by
them in some bank designated by the
Treasurer of State.
The act making appropriations for the
year 1897 authorized the County Treas
urers to make their payments into the
State Treasury by depositing the sums
due the State in some neighboring bank.
The same provision was incorporated into
the appropriation bills 184l and 1912
The law of lS45. that fruitful source Of
mischief in our financial administration,
has authorized the continuance Of the
practice up to the present time. State
Treasurers have collected the State taxes
from the banks, and not from the county
Treasurers.
Mr. Gibson says that he resorted to
borrowing in order to meet the demands
on the Treasury and conceal the deficit.
II it is true that he received but S303,
600 from Mr.. Bresln, the books of the
office corroborate his declaration. The
balance in the Treasury on the / 9th No
vember last, was $3.50, 548.59. II Mr..
Breslih owed at that time S550.00O
Mr.. Gibson must nave borrowed nearly
100000.
Notwithstanding The act of April 9th,
1856, forhids it. the practice Of receiving
deposits and issuing certificates still con
tinued, aud furnished portion of the
funds by which the Joint Committee
and the Auditor were deceived in regard
to the condition of the Treasury. The
holder of draft on the Treasury, on
presenting it for payment, instead Of the
money, received a certificate of deposit
signed by the Treasurer, for the amount.
The draft would pass into the Treasury
and be credited on the books. The bal
qnce in the Treasury would be then ap-
parently diminished, though il actually
remained the same. Certificates issued
Inder these circumstances. amounting to
S775.OO, are now outstanding.
With all these resources at his com,
mand, it is not at all surprising that the
late treasurer succeeded in 0oueealing
the defalcation.
There was no obstacle to tho use of the
money of the State by Mr.. BFesliu. nor
was any effort on his part necessary TO
conceal deficit. There was no thor
ough examination Of the treasury during
his term Of office, nor any inquiry into
the condition Of its funds. The surplus
in his hands was scarcely ever less than
half a million. The average balance on the
18th Of November Of four years Of his
administration, exceeded S642, 900. The
following table. exhibiting the balances
| Ia the treasury at that date, for the last
ten wears, is not destitute Of interest. Ii
shows that a large surplus has been
allowed 70 sooumulate.
Rsatsnsns er6i6itiag Hs balance IN he
Treasury, as reported By tAs zrsqsu-
Ysy, from NoU. l5tk, ls47, to ROV,
l5fA, 1885.