The Hancock Jeffersonian. [volume] (Findlay, Ohio) 1857-1870, 1858-01-15

aid the iBcereet % ~ pV4l44 @ekssi
md fully protsstsd the cssdit sf thesi
,tate. "a gsg5ss- .iffr hs.39nry7 e.
Another arrangement was pmaao5
Eith the State Bank and Branches,
BY which these Instifutions agreed
o pay directly to the parties i,ojdine
The warrants Of the Auditor upo1
The Treasurer, The seversl amounts
due them, and await reimbursemeDt
Of the principal from the incomiuR
revenues, and Of interest a ak ~
cent. from the next 0ensraf As,euy.
bly,. BY this arrangement the pen. 4
mary expenses Of the StAte 0ovesHs2
ment were provided for. and the n.
jurous effcct Of the defalcstiod, mon
the public interest," - e. q pcssi611a
aeerted. l do not doubt that 70,
will promptly provne for the pay
ment OF tho interest which has ao
crued upon the advances 30 honors.
bly, and liberally made.
The arrangement with the Trust
Company resulted in unforeseen ad-
vantagee to the State.
At the time OF Mr.: Gibson's rcsie.
nation, according to the Treasury
books, there were in his custody, a.
Treasury, State six per cent. bonds.
to The amount of $209, ,82S IA, de-
posted rs security for the circulating
notes Of the Seneca County Bank
OF these bonds IL was soon after
wards ascertained that e132, 1873 IA,
had been sent to New York to be-
converted, as was alleged into other
bonds ofa different date; and 4lOOs
900 Of these had been placed in the
hands of Atwood & Co.,, with au.
thcrity to sell; and drafts had been
made on that firm, and accepted hy
Ut on this credit, to amount OF $5S..
500. Proceedings in behalf of tho
State were Immediately instituted
to obtain possession of these bonds.
which resulted in an arragement, by
which the bonds were transferred to
the Ohio Life Insurance and Trust
Company to be retransferred to the
State, as soon as money advanced
By that institution in discharge ofths
claim OF Atwood & Co., should be
realized out Of certain securities de-.
posted by Mr.. Gibson.
Before the making ot the transfer
according to this arrangement, the
Trust Company failed; and il was
ascertained that the bonds had been
converted by it's cashier to his own
use, or that Of tho institution. by
which means the Trust Company had
become the debtor of the State in
their full amount. Other funds of
the State in the hands of the Trusk
Company were also converted in tho
same manner. The whole amount
thus embczzled was nearly equal to
the cum advanced, and would have
been almost,i ,if not altogether, a total
loss, had not the arrangement for
tho epsymert Of the July interest, ,crea.
ted a more than equal debt to tho
rrnst Company, and thus secured
the State against the possibility OF
loss by its failure.
Until within very recent period
no eHectual legislative guards had
been provided for the security Of the
Treasury. Tho legislation Of 1856
and 1857, in great part supplied this
defect. 1t made the Auditor ofStatc
the chief accounting officer of the
Treasury, and required all payments
as well rs all disbursements to DO
made upon his warrant; il directed
tho Commissioners of the Sinking
80 w'tiIdiaw from tho Treasurv
rom time to time The moneys belong.
nate 10 rnc rreu5t-yy@i-i@
Of them ample securities Of all mon
eys deposited with them; and intro
duced other important checks upon
the action Of the Treasurer.
Had these pro visions Of law been
adopted Immediately after the ratifi-
cation of the present Constitutional
is highly improbable that the defal.
cation which now embarrsss our
finances could have occurred.
| II will be observed that the system
now established resembles, In some
respects. that OF the Independent
Treasury Of the United States. The
resemblance would DO almost com.
plete, except as to receipts and dis
bursements Of revenue in coin, ifthe
Treasurer OF State were excluded
from actual custody Of the public
money, anil all payments were re.
quired t. be made to repositories,
and all disbursements by drafts upon
them, under suitable restriction and
regulations.
, sEMDLANCE OF A STATE SUB TREASURY
, RECOMMENDED.
: / Dcommend provision Of this
nature, and that hereafter all public
! moneys be required to DO collected
! or disbursed in specie or notes Of
E specie paying banks ofthis State, and
Q that no payment be made from the
g Treasury Of any sum uuder twenty
z dollars otherwise than In COIN -
u Every guard which Legislative Wis
Q dom can devise should be providet
It against future rnisuse Of public funds
= recommend also that provision b
o made for thorough examination int
y the condition of the County TreSs
uries and full reports Of the results
>. for the information Of the Genera
'oI Assembly. stesT.s
t. Some further provision Of Law i
.. necessary in regard to tie custody
it and transfer OF State and Federal