Preble County Democrat. [volume] (Eaton, Ohio) 1857-1859, 1858-01-07

0V6E3u6cllu6O W IuISTlcTc, Ou IL SAOuAN
that the surrender of u fugitive, charged
With embezzlement, was not stipulated
I'M The treaty between the United States
and Great Britain, and therefore could
not with propriety be asked for.
Civil suits have been instituted by the
AttprDey General, against the two ex-
freasurers and their sureties, upon,
their official bonds. In the course of
the Investigations required by these ac-
tons, as well Las by the crindhaE prose
cutions upon the indictments found by
the grand jury, it is hoped that some
further light may be thrown upon the
uses made ofithe money abstracted from
the Treasury, and that a considerable
portion of il, al 4east,mayb be recovered
T. Up to the time of the disclosures of
the deficit, ME. Gibson had obtained
means for meeting the current demands
against the State Treasury, and deceiy-
ing the Legislative cofhnfttees and the
Auditor, when examining its condition
by temporary loans from banks and
bankers, and other devices described in
the report of the Special Examiher.E
Whether the withdrawal of thenm moneys
thus obtained drepresented to belong
to the State, constitutes a defalcction
and renders him liable as a "defaulter,
Notwithstanding he may not have par
Eticipated in the original. abstraction, is
a question forfthe courts. The practicsd
Ieffect. of that withdrawal was to leave the
State unprovided with sufficient funds
for the payment of the interest ou the
Estate debt, becoming due. on the let of
July, or for he rdinary-expences of
government: s
Toobtain thee funds was indispensa-
BILE, and$tinre were but two means of
accomplishing the object. One was to
call the sLegislat6fet ogotherJ in extra
session, and await its action the other
to makeian immediate arrangements, and
invoke for it the sanction of the General
Assembly at its next regular meeting.
Only eighteen days would elapse after
the resignation of Mr.. Gibson before
the interest was payable. and that time
would hardly suffice for the assembling
of the Legislature and the provision of.
the necessary funds through its ACTION.
Under these circumstances, / did not
think it advisable to incur the expense
of an extra session, | ut advised the ma
king of such arrangements, by the Com
missioners of the Sinking Fund and TIL
State Treasurer, as would promptly Sc
cure the needed means-ourthe best terms,
not exceeding the rate of six per cent
per- annum on the amount obtained
An arrangement was accordingly
made with the Ohio Life Insurance and
Trust Company, under which that insti-
tuition advanced to. the State, on the LIST
day of July S150,000, which sum-, with
what had been previously provided, paid
the interest on the debt, and fully pro-.
tected the credit of the State. -.
Another arrangement was made with
the State Bank and Branches, by which
these Institutions agreed to pay direct
ly to the parties holding the warrants of
the Auditor upon the Treasurer, the
several amounts due them, and'await re-
Endorsements of the principal from the
incoming revenues, and OF interest at six
per cent, from the next General Assem-
bly,. By this arrangement, the p%ecuni-
AIRY expenses of the State Government
were provided for, and the injurious eff
feet of the detalcation upon the. public
interest, as far as possible averted, [
do not doubt that you will promptly
provide for the payment of the interest
which has accrued upon the advances
so honorably and literally made. 49,.
The arrangement with the Trust Com
pany resulted in unforeseen advantage
to the State. - ult- IN. tf4r
At the time of Mr.. Gibson's resigna-
ton, according to the Treasury books,
there were in his custody. as Treasurer,
State six per cent, bonds to the amount
of S209,628 II, deposited as security for
the circulating notes of the SCne Coul-
ty Bank. OF these, bonds it was soon at
forwards ascertained that S132,l2S If,
had been sent to New York to he CON
verted, as was alledged into other bonds
of n different date; and 500, 900 of
these had been placed in the hands of,
Atwood 4 Co, with authority to sell;
and drafts had been made on that firm,
and accepted by it on this. credit, to.
amount of S5S, 500. Proceedings in
behalf of the State were Immediately in
stituted to obtain possession of these
bonds, which resulted III an arrangement,
by which the bonds were transferred to
the Ohio Life Insurance and Trust Com
pany to be retransferred to the State, as
soon as money advanced by that insti-
tu;ion in discharge of the claim of At
wood L. Co.,~ishou1d be realized out of
certain securities deposited by Mr.. Glib
son t--i: a.t Tt go.
Before the making of the transfer ac-
cordingto this arrangement, he Trust
Company failed; and it was ascertained
that the bonds had been converted by
It's Cashier to. his own use or that of the
i~nstitution5 by which means the Trnst
Company had become the debtor of the
State in their full mount. Other funds
of the State in the hands of the Trust
Company were also converted in the
same manner. The whole mount thus
cmbezz,ed was nearly equal to the sum-
advanced, and would have been almost,
if not altogether a total loss, had not the
arrangement ior, the payment of the Ju-
ly interest, created a more than equal
debt to the Trust Company, and thus Sc
cured the State against the possibility
of loss by it's future. .ai .isB"t.
Until within a very recent period no
cTectual legislative guards had been pro-
vided for the security of the Treasury
Tho Iau;SIation Of 1874 and TS5 in n