The weekly Portage sentinel. [volume] (Ravenna, Ohio) 1854-1861, 1858-01-14
WHOLE. NUMBER 563

tue sutu W 0dooSOOVl which SUN, Win Wutou
had been previously provided. paid the Ia.
iereston the public debt, and fully protected
the credit Of TIE State. g4a
Another arrangement was made with the
State Bank and Branches, by which these
Institutions agreed to pay directly to the
parties holding the warrants Of the Aditor
npoR the Treasurer, the several amounts
due them. and await reimbursement OF the
principal from the incoming revenues, and
OF interest at six per cent. from the next
General Assembly, BY this arrangement,
the pecuniary expenses OF the State Gov
ernment were provided for, and the injurious
effect Of the defalcatiou upon the public in.
iere,t, as far ns possible, sverted. do not
doubt that you will promptly provide for ths
p1yment Of the interest which has, accfhea
upon the advances SO hohorarly and liberal.
ly made. .,.s s...ts+.-s ..ss
The arrangement with the Trust Com.
pany resulted id unforeseen advantage to tho
State. ,.-.- f.s
At the time Of Mr.. Gibson's resignation,
according 10 the Treasury books, there were
in his custody as Treasurer, State six per
cent. bonds to the amount Of $2o9, ,6as IA
deposited ns sectfity for the circulating notes
of the Sehaea County Bank. or these
bo ,d.. Il |as Sddn aEst&dfds sscertained
thst SI32,l2s Ia had been sent TO New
York. TO be converted, as was alleged, into
other bonds Of a different date; and $780,
900 Of these had been placed in the hands
of Atwood g. Co., with authority to selli
and drafts have been made on that firm, and
accented and paid by it, on this credit, to
the amount of $58,500. Proceedings Id
behalf of the State were Immediately insti-
tuted to obtain possession OF these bonds.
which resulted in an arrangement, BY which
the bond, were transferred to the Ohio Lie
Insurance and Trust Company, to be re4
| transferred to the State, as soon as the
money advanced by that institution; in dis-
charge df the claim Of Atwood q Co., should
be realized out Of certain securities deposited
by AR, Gibson. Before the making Of tho
trans Fer, according to this arrangement, the
Trust Company failed; and it was ascertain
ed that the bonds had been converted by its
Cashier to his own use, or that Of the ihSti.
tuition: bv which means the Trust Com
p,py h I'd become the debtor Of the State In
! their full amount. Other funds of the State
in the hands of the Trust Company were
aIso converted in the same manner. The
whole at.5it. this embezEled was nearly
etuuI to The sum advanced, and would hare
been almost, ii not altogether, total loss,
had not the arrangement for the payment Of
the July interest, created more than equal
debt to the Trust Company. and thus secured
the Stnte against the possibly Of loss by its
! failure.
Until within very recent period, no eff G.
tuo legislative guards had been provided for
the security Of the Treasury. The Legisla-
ton of 1856 and 1857, in great part, supplied
I this defect. 1t made the Auditor OF State
the chief accounting officer OF the Treasury
and REQUIRED all payments os well+as all dis
1 bursements to be made upon his variant;
/ il directed the Commissioners OF the Sink"
iny Fund to withdraw from the Treasury
from time to time the moneys belonging 70
that fund; it provided for the appointment
of depositaries subordinate to the Treasury
and required of them ample securities fot
oil moneys deposited with them; and intro
duced other important checks upon the 40.
ton Of tie Treasurer.
q Had the 70 provisions Of law been adopted
inm ediately after the ratification Of the pre-
, sent Constitution, it Is highly improbable
: that the defalcaton which Row embarrasseS
- our fiuances could have occurred.
: 1t will be observed that the system now
established resembles, in some respects,
}. that Of the Independent Treasury of the
!, :, limited States. The resemblance would be
;. almost complete except as to receipts and
:, disbursements of revenue in coin, 1t the
~ Treasurer Of State were excluded from ac-
y . tual CUSTODY of public money. ard all pay
~ ments were required to be made to deposit
I. taries. and oil disbursements by drafts upon
- !. them, under suitable restrictions and reguli,
ts lions. - zee So
!. n recommend provision Of this nature
" ~ and that hereafter all public moneys be re-
~ auired to be CO Elected and disbursed in spe
=. Gle or notes of specie paying banks OF thi'
IF State. and that no payment be made from
Ne the Treasury of any sum under twenty dol
/. lars. otherwise than in coin. Every guar
20 which legislative wisdom can devise shoul
- be provided against future misuse OF publ
he funds. | recommend, also. that provlslo
-. be made for thorough examinations into tn
;al condition Of the County Treasurles' ana iul
~ ~ renorts of the result for the information
he the General Assembly.
Nv Nv Some further provision Of law is necet
~, sary in regard to the custody ana transfer
~, ~ State and Federal bonds held by officers
Stnte, as security for the circulate on q
~ h,nks AT prese 1t the bonds belonging
o' vISN Vhs tnsssefdeft BatiRs dre Reid By III
;. Trasstter, while those belonging to th
te. te. Free Banks ure held by the Auditor. \
Sa 'p' case of insolvency, the bonds are require
ue ;ue to be sold by the officers holding them an
I've I've The Ttdceeds applied in full OF pro rata paS
ng ent Of tho circulation. The large powe!
ms conferred for these ends are liable to gre;
!. - shmse. and have, in fact, been great
~ ~ abused see no reason why the bonds . Z
~ ~ lonoios to all the banks should not De d
'ne nos;teS with Treasurer, and such checks tn
y s1s posed upon his action, through the agency
~ The Auditor and otherwise, as will eHectue
ud' lv puard against oil abuse. respectful
- recommend to your favorable consderati'
90 = the suggestions contained iri the report
an an tho second special examination Of y
,,n S Treasury herewith transmitted.
as The transactions above detailedi toseth
-" with the or.tstanding liabilities OF 1895. ha
~. seriousiy affected the financial condinol
i ;.H' the State, 40 connected with revenus =
e;s. disbursement. Ia.
To obtain clear idea OF the actuat q situ y,
go ton, IL will be necessary TO SeVs's y y
,as = 70 close of she fiscaiyear fs54-a.
81. YNe balauec IN the lFeasp.y 90 tne ayes S ea
-. Of SoYempeI, ~ X. s8 Nas according g
tSes e. rsnoft 81 the late AnGito3 OF esAs's
~ - Rnf of tti6 balance tnese pay 1 "a 80 J
time heen deposited with laiied % A84 vi q
"a ofl SSnFs ahd Bankers, by ths :. !. ..sas &
,'ne.I eJ o4 sbesc was retained byhim
nder Il 7Iinder claims Tor exonanGos 5ss5t i 4.
Ia f1as. sanNA AfiE