Fremont journal. [volume] (Fremont, Sandusky County [Ohio]) 1853-1866, 1858-05-14
Tbc Ohio Loan q s1oooOO---The Neccs-


Our readers understand that this aditional
sum is necessary in order TO carry on the or
dinary expenditures Of the State, and TO
meet tho July interest on our public debt,
and that this necessity has been caused by
the defalcation in the treasury under the
administration of Mr.. Breslin. Tho law
which authorizes this loan also provides for
leyying tax upon tho property of tho State,
so rs TO pay it off in three years; one-third
Of tho amount to be paid each year. This,
of course, Is to be in addition to tho usual
tax for State purposes, and will increase
the burden upon the taxpayers to that
amount.
We learn that Mr.. Stone has been in
New York for some days, and that he ex-
presses tho opinion that the loan can be
made at par. The rate OF interest is six
per cent The length of time it is to con-
tinue is the only drawback TO it in market
If it had ten or twenty years to run, it
would command q premium Of from six to
seven per cent. But one-third of it is to be
paid within ono yoar, and tho balance in
two, and three years. Capitalists do not
like to change their bonds so often, and
will give moro for bonds that have per-
manent character. No one doubts the sol
vency or good faith Of Ohio, but the above
causes will prevent any thing in tho way of
premiums on the loan. y
The funds in the Treasury have been dis
appearing rapidly of late, and we understand
there is a necessity of making this loan at
once, in order to meet the current expenses
Several causes have tended to produce this
state OF depletion. In addition to tho heavy
expenses connected with the session Of the
Legislature, the printing and binding con-
tracts, the support of our numerous and cost
y benevolent institutions, and the ordinary
expenses of the judiciary and the canals,
there have been other important drains
which have absorbed tho revenues derived
from the taxes of last year.
lst. The interest on the public debt due
on the 1st Of January was all paid by dRtic-
} ipating the current income; in other words,
by drawing upon County Treasurers for
funds before the time they were called upon
} by law to settle and pay over to the State
} its portion of their collections. This took
over 100000.
3D. When the development was made,
last summer, that the treasury was empty,
and when Mr.. Stone was appointed to su-
perintend that department, there was scarce
I ly a dollar to meet current expenses. What
was to be done? Should the Govnrnor call
the Legislature together that loan might
DO authorized? This would impose heavy
additional expense, and was to DO avoided
if possible. In this emergency the banks
came forward aud agreed to cash the drafts
of the Auditor upon the Treasury to any
amount that might be required to keep up
the credit of the State. Tho offer was ac-
cepted, and during the season the banks
advanced to the State in this way about
! $4,000. The interest upon these adyan-
ces SO promptly and and generously made,
was very properly provided for by the Leg
islature at its late session. The principal
was repaid to the banks by the treasury as
soon as the funds came to hand during the
, winter. This operation absorbed principal
} and interest, about $l3O,O0o of the means
of this year that thus went to pay tho ex.
pensos of 1857.
Sd. One hundred thousand dollars of the
income of this year has been absorbed in
redeeming that amount Of the circulation OF
the Seneca county County Bank. In the
payment of the July interest of the July in-
terest 1857, the State borrowed 100000
of the the Ohio Life Insurance and Trust
Company. OF this, the sum of 100000
was paid by the bonds of the State belong
ing TO the Seneca County Bank, and which
the Trust Company unlawfully used. 1t
however paid that amount of the debt the
State owed that company, but it left the
State to settle 100000 with the Seneca
County Bank. This sum which went to
pay the interest due in July, 1857, was thus
thrown upon the Treasury to be paid from
the revenues to be used in 1858. 1t has
absorbed 100000 Of the current means Of
this year.
4th. The funds that were necessary to
redeem the circulation Of the Canal Bank
of Cleveland. Mr. Breslin in his time had
sold the bonds belonging to that Bank, and
the proceeds went into the State Treasury
But it went somephere with the rest of the
money which was stolen 1t was not in the
Treasury when Mr.. Stone took possession
The Treasury, however, continued to re-
deem the circulation of that Bank so long
as thero were means to meet it. There
was nominally about $4,000 of that fund
! The State owed tho fund that sum, and
that amount has been paid to the holders
: of Canal Bank bills since last July. OF
: course, it was by anticipating the revenue
! from the taxes of 81.
These eomprizc tho extraordinary de-
mands upon the revenue Of last year. In
the aggregate they amount to about 800,
/, 900. Thus far the treasury has promptly
! met all obligations. But glance at thu
= above items will demonstrate that ther,
: must bo replenishing of funds, and tha
n at an early day. The fund commissioners
= careful of the honor and credit of the State
4 have met the crisis promptly. The neees
: sary funds will soon be here. Our July in
f terest will be paid at the timo as usual, an'
r the fair fame and character of our goodll
, State will continue as heretofore, to be tn
pride of our citizens aud the boast of ou
c common country.
True, the psopls must submit to extr
e taxation to meet the crisis; but il it wi
y cause them to be moro careful in the seleC
t ton of their public servants, tho lessor
| though dear one, will not be without il
n practical value.-- Columbus Gazette.