The Tiffin tribune. [volume] (Tiffin, Ohio) 1848-1859, 1858-01-01

WNiNh innh place nunIo lNf tssaf4 Jury. kNfaN
Investigations resulted iu iudic mou's ugaiust
hoth lho ex- rreaauiers. Mr. Gibsun gave hail
but NJ. Rte+lia God tu canada Every eiIurt
deemed a. and expcdienl hy thu Prosecuting /
Attorney and Attorney Nenefal wus made fur |
his apprehension. aud The charges were defuyed !
from my contingent fund. correspondence I
was also instituted with the Federal Govern. /
mont At Washington, IN the hopes Of engaging !
I've intervention with The British Guverumout. /
by which means al,no the surrender Of the m. /
giuve delauler could he ohJaiued rhe Fed. |
eral authorities, however. declined 90 interfere,
on thu ground that the surrender ul a fugitive, /
charged with omheszlemeut, was NOT stipulated I
m the treaty between the United states aud
Great Britain, aud therefore could not with |
pupriety, be asked for
Civtl suits have been iustitufod hy the Atlur. /
ney General, against the tive eX.rTeasuters aud !
their sureties, upou their official bonds. in the
course Of the Investigations reqm ed by these
actiuus a. we'll az by the criminsl prosecutions
upon the indictments found by ihe Guud Jury,
u h hoped that some further light may he
thrown upon the uses made of the money alb
straotod from the Treasury, and that n runsid-
etahe pOrtlun Of IL, at least, may be rocu, cred
Up 10 the timo ui the disclosure Of the deficit
Me- Gibson had obtained means hr meeliug the
current demands against the state Treasury, aud
docelvlug the legislative cOmmiiiees aud the
Auditor. when examining its condition. by tem-
liurary luans from banks aud bankers, aud uth-
er devices described IN the rcunrl ni the Special
r. miner Whether The Withdrawal of ,he
moneys thus obtained and represented To belong
To the State, oonsuitutca dolalcaiinn aud rem
ders him liable as a delaulter, notwithstanding
he may not have participated in the original
abstraction, h a question for the courts The
practical effect Of that Withdrawal was to leave
the State uuprOvlded with sufficient funds for
the pay ment Of the interest on the State debt,
hoo 4. al r. III. A
diunry expenses q the government
To obtain these funds was indispensable. aud
there were but two means of accomplishing the
object One was. TO call the Legislature togeth-
er, Ia extra session, aud await iis action the
| other TO make an immediate arrangement, aud
invoke Tor 10 the sanction of the General Asscm-
bly, a. tta next regular meeting. Only eighteen
days would elapse after the resignation Of Mr..
Gibson before The interest was payable, aud
that time would hardly suffice fnr The assem-
bling Of the Legislature aud the provision of the
| necessary funds through It's action. Under
/ these circumstances, did not think u advisable
TO incur the expense of au extra session. but adj.
vised the making Of such arrangements by the
Commissioners Of the Sinking Fund aud the
State Treasurer, AZ would promptly secure the
needed meana on the best terms. not exceeding
the rste Of six per cent per annum on the
amount oblnined
An arrangement was accordingly made with
| Nhn ONlN AilN ANNNlAuNN AuW ANNhN company
under which that institution advanced to the
State, on the Let day Of July, Ia New York. the
sum Of Sl500O0, which sum, with what had
been previously provided, paid the interest on
the public debt and fully protected the credit
Of the Stale.
Another arrangement was made with the
State Bank aud Branches, by which these Insii-
tutions agreed TO pay directly to the parties
holding the warrants OF tho Auditor upon tho
Treasurer, the several amounts due them. aud
await reimbursement Of the principal from The
incoming revenues, and Of interest at sx per
cent from the next General Assembly. BY this
arrangement, the pecuniary expenses Of the
state Government we're provided inr aud the
injurious effect Of the delulcLiion upon the pub.
lie interest, so far as possible. Avered do not
doubt that you will promptly provide for the
| payment Of the interest which has accrued upOn
tho advances So honorably aud literally mado.
The arrangement with the Trust Company
resulted in unforeseen advantage to the Stale.
At the time of Mr.. Gibson's resignation, ac-
eordlng 10 the Treasury books there were 10
his custody as Treasurer. State ak per cent.
bonds 10 the amount Of 5000 .628ll, deposited
a. security for the circulating notes Of tho Sem
eca County Bank. OF these bonds il was soon
afterwards asoertained that Sl32.l2814, had
been sent 10 New York 10 be converted, as was
alleged, into other bonds Of different date
and SlOO,OOO Of these had been placed IN the
hands Of Atwood d Co., with authority 10 sell
aud drafts bad beeu made on that firm, aud ac-
cepted aud paid by Il, on this credit, 10 the
amount of S5s,500 Proceedings 10 behalf OF
the State were Immediately instituted 10 obtain
possession Of these bOnds, which resulted ~ an
arrangement, by which the bonds were trana-
feued TO the Ohio Life Insurance and Trust
Company, 10 be re.trnnserred TO the State ns
soon as the money advanced by that institutiOn
in discharge OF the claim Of Atwood 4 Co.
ahould hn rnnligpN ttut Of a,
posiled by Mr. Gibson. Before the making OF
he transfer according TO this arrangement, the
Trust Company Jailed aud IL was aseerlAiued
that the bonds had been converted by iis CASH
er 10 his own use. or that of the institution. 10y
which means the Trust Company had become
the debtor uf the State m their full amount
Other iunds Of the Slate Ia the hands II the
Trust Company were alsv converted IN the same
manner The whole amount thus embezzled
was nearly equal 10 tbs sum advanced, aud
would have been almost, if not altogether to-
tai loss had not the arrangement for the pay
ment of the July Interest, oreaed a nOre Than
equal debt 10 the rrust Company. aud thus Sc
cured the State against the possibility Of loss by
It's failure.
Until within n very recent perpd no efTeotunl
legislative guards had been provided for the Sc
cgrity Of the Treasury. The Legislature of
1856 and 1857, in great part supplied lhis de-
feet IL made the Auditor Of Slate the chief
] accounting oilctl oi lno lltuauty, anu required
all pay yments as well as all Disbursements TO be
made upon his warrant II directed the Com
missinners Of the Sinking Fund 10 Withdraw
from the Treasury from Time 70 time the moueys
belonging 10 that fund il provided for the APP
pOintment OF deposrtaries subordinate 10 the
Treasury, aud required Of Them ample secuu-
ties for all moneys deposited with them aud
introduced other important checks upon the ao-
tion Of the Treasurer.
Had these provisions Of law been adopted
Immediately after the ratification Of the present
Constitution, 1t is highly improbable that the
deiacation which now embnrrasses our finances
could have occurred
/ II will be observed that the system now es.
iabllshed resembles IN some respects. that Of
the Independent Treasury Of the United States
The resemblance would be almost complete ex-
cept a. 10 receipts aud disbursements Of reve-
nue. in com, il the Treasurer Of State were ex-
cluded from actual custody Of public money,
aud all payments were required TO be made 10
depositores, aud all disbursements by drafts
upon them, under suitable restrictions and reg
ulntiona
1 recommend provision Of this nature, and
that hereafter all public moneys lie required to
be collected and disbursed 10 specie or notes Of
specie paying banks Of this State. aud that no
payment be made from the Treasury Of any sum
under twenty dollars other iwise than In COIN