The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1858-01-13

wards ascertained that $132 62s, IA, had been
sent 10 New York, TO be converted, as was sl-
legged, into oth,r bonds of different date; and
10000 Of these had been placed in the hands
of Atwood g. Co., with authority TO sell; and
drafts had been make on that firm, and accep.
ted and paid by it, on this credit. to the amount
of $5S,5O0. Proceedings in behalf Of the State
were Immediately instituted TO obtain posses.
sion of these bonds which resulted in an arrange
ment, by which the bonds were transferred to
the Ohio Life Insurance and Trust Company, to
be transferred TO the State as soon as the money
advanced by that institution in discharge Of The
claim ofAtwood e. Co. should be realized out Of
certain securities deposited by Mr.. Gibson. Be-
fore the making OF the transfer according to this
arrangement, the Trust Company failed and it
was ascertained that the bonds bad been conver-
ted by its cashier to his own use, or that of the
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
ofthe Trust Company were also converted in the
same manner. The whole amount thus EN-.
bezzled was nearly equal TO the sum advanced,
and would have been almost, il not altogether a
total loss had not the arrangement for the pay
ment OF the Jolly interest, created more than
equal debt to the Trust Company, and thus Sc
cured the State against the possibility Of loss by
/ lis failure.
! Until within a very recent period no efeetu-
al legislative guards had been provided iof The
security of the treasury. The legislation Of
1856 and 1857, in great part supplied this de-
feet. 1t Il &de the Auditor of the State the chief
accounting officer Of the Treasury, and required
all payments as well as all disbursements to be
made upon his warrant; it directed the commits
sioncls of the sinking fundto withdraw from the
treasury from time to time the moneys belong
ing to that fund; it provided for the appointment
OF depoStarieS subordinate TO the Treasury, and
required Of them ample securities Tor all moneys
deposited with them; and introduced other i'm
portant checks upon the action Of the treasurer.
Had thcsc provisions OF law been adopted im-
mediately after the ratification Of the present
constitution, it is highly improbable that the
De falcatlon which now embarrasses our finances
cOu,d have occurred.
1t will be observed that the system now es-
tabliAhed, resembles in some respects, that Of
the INDEPENDENT Treasury OF the United States.
The resemblance would be almost complete ex-
cept as to receipts and disbursements ofreyenue
in coin, the treasurer of State were excluded
from actual custodyof public money, and all
RES, and all disbursements by drafts upon them,
under suitable restrictions and regulations.
| recommend provision Of this nature, and
| that hereafter all public moneys be required to
| be collected and disbursed in specie or notes Of
specie paying banks of this State, and that no
payment he Eade from the Treasury Of any
sum under twenty, dollars, otherwise than in
coin. Every guard which legislative wisdom
eau devise should be provided against future
misuse Of public funds | recommend, also,
that provision be made for thorough examina-
tiou into the condition of the County Treasures,
and full reports ol the result for the iniormation
Of the General Assembly. ......
! Sum3 further provision Of law is necessary in
regard 10 the custody and transfer of State and
Federal bonds held by officers of State, as secu
| rty for the circulation of banks. At present
| the bonds belonging to the Independent Banks
are held by the Treasurer, while those bclong-
ing to the Free Banks are held by the Auditor.
In case Of insolvency, the bonds are required to
be sold by The officers holding them, and the
proceeds applied in full OF prorata payment OF
the circulation. The large powers conferred for
these ends are liable to great abuse and llaYe in
TACT, been greatly abused. lsee reason WIZ
the bonds belonging to all the banks should not
be deposited with the Treasurer, and such
checks imposed upon his action, Though the a
gency Of the Auditor and otherwise, as will eff
6ectually guard against all abuse. respectfully
recommend to your favorable consideration the
suggestions contained in the report Of the sec.
ond special examination of the Treasury, here
with transmitted.
The transactions a a'ove detailed, together with
the outstanding liabilities Of 1855, heve serious
ly affected the financial condition Of the State,
as connected with revenue and disbursements.
To obtain clear idea Of the actual situation,
it will be necessary TO revert 10 lie close o! the
fis al year 1654-5. s.s
The balance in the Treosury on the 18th a..
of November, lsa5,oop picabls to the dis
blrst mant o. l63 80, was, accorGing
the report OF tue late Auditor 0i state 703 $40 90
But this balance there hGd ..t v" s''t+"
been deposited with tailed Mf E"g ut
banks and bankers, by the 4e ae& --.t
outgoing Treasurer. 204 63e Is
And there was taiaed by
lin under claims for txcge
| though not credited by the
| Auditor lS,4SI 10 H.i.F.
And there had been unlaw- r. .
lutly distracted, as appears rs.
from the reports Of Mr.. spar
row md OF the present uea-
surer....... .......... T9.9ll 90 4.t
Making an aggregate ot............so so5,eO476
Showing instead or mn available balance
Of 7oS, $40 60, real deficit of. .,..... 99433 06
To provide the means Of carrying on the gov
ernment, in the absence ofthe reported balance
the outgoing Treasurer obtained from the coun,
| ty Treasurers the sum Of S750715,70, and APP
propriated the sum S94, 1861 % held in trust for
the bill holders ofthe Canal Bank Of Cleveland
making an aggregate Of $855, ,502, ,05; Of which
he dsburSed in payments tor the State, ,547 ,444-
| OF; and dpaid over to his successor, in different
sums and at different times, 800, ,S65, 81; being
the whole amount thus obtained and appropria-
ted except 4,l92,64; Of which last sum he re-
tanned for exchange, claimed to have been paid
for the January interest, 2,725,54. The small
balance is included in the dealcation as report
ed by the present Treasurer.
Butnot only was there this actual deficit OF
cash means, but debts also existed, contracted
in 1855, and, as to the greater portion, without
warrant Of law. to the amount Of 639, ,655. 75.--
These debts originated in supplies and labor,
furnished to the State and its Institutions, for
the most part in good Gith; and the creditors,
therefore, could not properly be denied pay
ment
The actual condition OF the treasury is ex.
hibitedby the following statement:
Aggregate OF sums deposited with failed
banks and banke ere, retaieed tor exchge ss 80
and unlawfully distracted. ........,. sos po4 10
Add the amount, ret aimed as exchange -.