Daily Iowa State Democrat. [volume] (Davenport, Iowa) 1856-1859, 1858-06-24
From the State Journal, June 18th
THE STATE TREASURY.

From the State Journal, June l2th.l
THE STATE TREASURY.
REPORT OF THE SENATE COMMITTEE MORE DE-
vELopMENTs
When a criminal il to he executed, it
does not follow that the officer whose duty
it il TO execute the sentence Of the Law
should take pleasure in the act. Neither
do we take pleasure in the painful necessity
of parading before the public in connection
with dishonesty. and peculation, and Treas
ury plumber, the names of those with whom
We have associated az nelghhors and gentle
| men, ami who have been entrusted by the
| people with very important duties and
| trust Yet ours is the task, and We should
| be unworthy OF couItenance III the station
we hold rs editor of the Democratic Taper
at the seat of Government, if We spared the
expose of corruption in high places.
This week we publish one of the Reports
of the Special Committee appointed to OK
anime into the condition of the State Treas
| ury The facts therein impartially proven,
need no other endorsement with the people
than the signatures Of the Hon gentlemen
thereto appended Look at these figures,
and carefully study the unavoidable deluc-
tions of fraud and gross mismanagement OF
| the peoples Treasury.
The total amount lacking in the State
Treasury, at the date of the Report, was
| on, hundred and nine Thousand. Ssren hua-
| dred and sceentp-one dollars and eighiu-,ti,le
cents, And what did the Treasury have to
| show for this vast sum! Merely the drafts,
| checks and certificates of deposit of certain
private bankers and individuals lie had
II certificate OF specie deposit with Il. +. AL
len, of our city. for 44o,o0u. Did that GER
titicate state tho truth! No. For when
Mr.. Allen was Intercepted on the subject
by senator Saunders. who held in his pos
session some $4,000 or $4,000 in State
Warrants, the reply was that the specie
could not nor would not be paid until re-
turns were made from New York on those
drafts, checks, certificates, &c, put into his
hands for negotiation. SO with the certiti-
cate OF lIoyt sherman IL Co. Now, what
| did the Legislature send their agent east tn
! do! To borrow. on the best terms possible
for our depleted Treasury, 5000 900. lie
| was to exchange. for Gold, State Bonds to
| that amount. He was to advertise, for
certain length of time in certain New York
and Boston papers that the State Of Iowa
was in the marke, as borrow er, for the
lIISb Tune III ', WIS Wiling To
pay seven per cent This WAS Ia inform
capitalists Was il ever done2 Perhaps
So, but we have never seen the man who
knew Of such publication. This item is i'm
portant only as link in the chain of circum-
stances showing studied fraud The loan
was taken by the firm of Cook & Sargent,
the owners of the Bank of Florence. Their
credit was very much reduced at home
| Va
Republicans had any more money than they
needed at home TO restore animation to their
suspended shinplaster mill in Davenport
But they got the bonds of Iowa through a
hocus pocus process with the State agent,
and in return what got the State of Iowa
UnaccepteI drafts on the Bank of North
America, which had no other basis than the
bonds for which they were exchanged'-
Without a dollar over and above their home
necessities, they swap credits and papers
with the State of Iowa, and become her
creditor to the amount of 100000
As soon as these bonds were issued and
formally in the market, and before the
State agent left New York city, they were
quoted at s ,04. Since then they have run
up to 81 OF. They now rule higher than
any other State Stocks in the Union, or
even United States Stocks
In all this transaction big operation was
realized by Messrs. Cook d Sargent. Tax
ing the lowest figure of premium (sl,O
since these stocks have been put in market
and $4,000 is the sum lost to the State, and
gained by the parties negotiating in these
bonds.
Another feature of the transaction is, that
by their bringing checks, drafts and certi-
| Gooka, a,Jnr,,I nd valuable 4
pee niary liability of Messrs. Cook & Sar.
gent might stand the test, our outstanding
warrants were left to draw interest at per
cent and our bonds were drawing per
cent, thus making the State pay Is per
cent. on an Indebtedness thus doubled by
the loan. In the meantime the State Agent
gets the interest, and premiums on exchange
on the larger part of the 100000, and
puts it to his own credit, and into his own
pocket, as an individual depositor. Can
he have made less than $1,000 or 81 2 900
for his own pocket GU: Of this transaction
We put the facts to financiers to figure out
at their leisure.
Another fact not to be overlooked is, that
at the time of the examination there was
not gold enough in the Treasury to make
good the School Fund alone by some slG,-
600! This Fund had been paid in Cola, Land
the Treasurer had no authority to deposit
it elsewhere, to loan it, or do anything
Herewith, but keep it inviolate and uA :
| touched in the original coin. Yet it was
minus over $4,000, and placed by Eastern
Exchange, Drafts, Certificate, Of Deposit in
the individual name of NJ. L. Morris, DC
RI On the adjournment of the Legislature
, the balance Of this School Fund, we have
from good authority, was turned out and
= handed over to Hon. Alvin Saunders, Sena-
tor, to the amount of $4,000 to redeem
, State Warrants, payable only out Of the ap-
! preparation for the State Insane ASYLUM
Now, the moral Of all this is not that Mar.
tin l. Morris, State Treasurer, is the great
est william unhung, hut that the Legis .ators
who gave him this opportunity to plumber
were incompetent in so loosely giving him
such an opportunity, and placing tempta-
ton in his way. They were regardless of
the People, and the interests of the Trea-
sury.
II the State Treasurer be innocent, then
the Republican Legislature is guilty. But
doubly dyed is the guilt of Republlcanism
in passing over quietly all the exposures af-
ter the return of N. L Norris and his reply
to the Senate Resolution Of Inquiry. They
! did nothing to fsrrit out the nefarious part
Of this transtion, bat rested content with ~
individual inqulry In saeh sass whether
! there was sAsagh Ii the Tfsasus1. -. pAy