The Ashland union. [volume] (Ashland, Ashland County, Ohio) 1854-1868, 1858-01-13

PEI. csnt. per annum on the amount OBJ
tanned
An arrangement was accordingly made
with the Ohio Life Insurance and trust
Company, under which that institution
advanced to the State, en- the lst day of
July, in Now York, the sum of SI50, 600,
which sum, with what had been previous
4 ly provided, paid tb e interest on the public
debt, and fully protected the credit of the
State.
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
Auditor upon the Treasurer, the several
amounts due them, and await reimburse
mont of the principal frem the incoming
revenues, and of interest at six per cent
from the next General Assembly. BY
this arrangement, the pecuniary expenses
of the State Government were provided
for, and the injurieus effect Of the .defal-
cation upon the public interest, as far as
possible. avcrted l de not doubt that
you will promptly provide for the pay
nlent of the interest which has accrued
upon the advances SO honorably and lib
orally made.
The arrangement with the Trust Com
pany resulted in unforeseen advantage to
the State.
At the time of Mr. Gibson s resignation,
according to the Treasury books, there
were in his custody as Treasurer, State
six per cent. bends to the amount of 5000, :
628 IA, deposited as security for the cir
culating notes of the Seneca County Blk.
OF these bonds, it was soon afterwards as
certained that $l32,. l28 IA had been
sent to New York, to be converted, as
was alleged, into other bonds of differ
eHt date; and 500 600 of these had been
placed in the hands of Atwood & Co.,
with authority to sell; and drafts had
been made on that firm, and accepted and
!. paid by it, on this credit, to the amount
of $58, 500. Proceedings in behalf of the
State were Immediately instituted to OBJ
tain possession of these bonds, which re-
suited in an arrangement, by which the
bonds were transferred to the Ohio Life
Insurance and Trust Company, to be re-.
transferred to the State, SIS soon as the
money advanced by that institution in
discharge of the claim of Atwood & Co.
should be realized out of certain securities
deposited by Mr.. Gibson. Before the
making of the transfer according to the
arrangement, the Trust Company failed;
and it was ascertained that the bonds
had been converted by its Cashier to his
own use, or that of the institution, by
which means the Trust Company had be-
come the debtor of the State in their full
amount. Other funds of the State in
the hands of the Trust Company were
also converted in the same manner. The
whole amount thus embezzled was nearly
; equal to the sum advanced and would
s have been almost, if not altogether to-
!, I b,I 81 81,
payment of the july interest, created a
more than equal debt to the Trust Com
pauy, and thus secured the State against
the possibility of loss by its failure.
Until within a very recent period ne
effectual legislative guards had been
provided for the security of the Treasury
The Legislature of 1856 and 1857, in
great part supplied this defect. It made
the Auditor of State the chief accounting
officer Of the Treasury, and required all
payments as well as all Disbursements to
be made upon bis warrant; it directed the
COMMISSIONERS of theSinking Fund to with
draw from the Treasury, from time to time,
the moneys belonging to that fund; it pro-
vided for tho appointment of depositaries
subordinate to the Treasury, and required
of them ample securities for all moneys
: -.l..sl- Al. = :
the Treasurer.
Had these provisions of law been adop-
.eu ., a.'e -: la'aoIsioi u
sns p,ess.s .s :. = nJ lm
prooaoie sna' .ns ue.aieas.on Sh.on he no"
eih par asses our nnances 0ouiu hase oo'
cuT.eo +. VI, ot. ~. AZ. .a.a
~li hi;stoS ys oIse.aeu asah1. saas sne s'sn 80
nom ~ .Ss. of a. Tnd.Da.S.a. T.aa.,;r. IT,.
of ofsJs' ths nn;teJ mt statss IT, rsse,nb blsncs
o,Id bs almost corarla.a ayoa,,t :. - rs
CENTS and di,bnrss n,srt. - yessn,.a in
coin ;f tn. Treasnrer of stata were er- -
. Guided from actual custedy of nublic
money. aud all payments we're REQUIRED TO
8 be made to depositaries. and all disburse-
5 ments by drafts upon them. under suita.
, BILE restrictions and regulatiops.
{ recommend provision Of this nature.
, and that hereafter all public moneys be