Holmes County Republican. [volume] (Millersburg, Holmes County, Ohio) 1856-1865, 1858-01-14
NO..

eepted and paid by it, on this credit, to tn
amount of $5S 500. Proceedings in behalf Q
the State were Immediately instituted to obtai
possession of these bonds, which resulted in Al
arrangement, by which the bonds were trans
ierred TO the Ohio Life Insurance and Trus
company, to be retransferred to the State. a
soon as the money advanced by that institution
IN discharge OF the claim of Atwood a Co. sbouIf
De realized out OF certain securities deposirec
by MIR. Gibson. Before the making of the trans
fer according to this arrangement. the TINS
Company failed; and it was ascertaiped that N.
bonds had been converted BY its Cashier 4, hi,
own use, or that of the institution, by which
means the Trust Company had become the debt
or of the State In their full amount. Other fund,
of the State In the hands of the Trust Compan,
were also coyerted in the same manner. The
whole amount thus embezzled wasnearly equa
to the sum advanced, and would have been al
most; if not altogether total loss. had not the
arrangement for the payment of the July in.
interest. created a more than equal debt to the
Trust Company, and thus secured the State
against the possibility of loss BY its failure.
It'll within a very recent period no effeetual
Legislative guards had been provided for the Sc
curity of the Treasury. The Legislation of 1856
aud 1857, in great part supplied this defect II
made the Auditor of State the chief accounting
officer of the Treasury, and required all paw
ments as well as all disbursements to be mad
upon his warrant; it directed the Commission
ers of the Sinking Fund to withdraw from the
Treasury from time to time the moneys belong
ing to that fund; it provided for the appoint
ment Of depositaries subordinate to the freasu-
ry, and required Of them ample securities for all
moneys deposited with them: and introduced
other important cheeks upon the action of the
Treasurer.
Had these provisions of law been adopted
Immediately after the ratification of the present
Constitution, it is highly improbable that the
defalcatiOn which now embarrasses ourfnances
could have occurred.
1t will be observed that the system now es-
tablished 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 Of revenue
in coin, if the Treasurer of State were excluded
from actual custody of public money, and all
payments were required to be made to deposi-
taries, and all disbursements by drafts upon
them, undei suitable restrictions and regula-
tions.
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 be made from the Treasury of any
sum under twenty dollars otherwise than in
coin. Every guard which Legislative wisdom
can devise should be provided against future
misuse of public funds. / recommend, also,
that provision be made for thorough examina-
tions into the condition of the County Treasu-
ries, and full reports of the results for the inor
nation of the General Assembly.
Some further provision of law is necessary in
regard to the custody and transfer of State and
Federal bonds held by officers of State, rs Sec
urity for the circulation of banks. At present
the bonds belonging to the Independent Banks
are held by the Treasurer, while those belong
ing 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 VI prorata payments of
The circulation The large power conferred for
these ends are liable to great abuse, and have.
in fact, been greatly abused. / see no reason
why the bonds belonging to all the banks should
not be deposited with the Treasurer, and such
checks imposed upon his action, through the
agency of the Auditor and otherwise, as will ef-
fectually guard against all abuse. respectful
ly recommend to your favorable consideration
the suggestions contained in the report of the
second special examination of the Treasury
herewith transmitted.
The transaction above detailed, together with
the outstanding liabilities of 1855, have eerious-
ly effected the financial condition of the State,
as connected with revenue and disbursement.
To obtain clear idea of the actual situation,
It will be necessary to revert to the close of the
fiscal year 1855.
rhe balance in the Treasury on the 18th of
November, 1855, applicable to this dis
bursements of 1866 was, according to the
report of the late Auditor of State s.05,5s0 so
But Of this balance there had
been deposited with failed
banks and bankers, by the out
And there retained by him
under claims for exchange,
though not credited by the Au-
And there had been unlawfully
distracted, appears from the
reports of Mr.. Sparrow and of
the present Treasurer 5199u 90
Making an aggregate Of sos,0os Te
Showing, instead of an available balance
Of S70S,57 SO. real deficit of 99,4S3 90
To provide the means of carrying on the Gov
in the absence of the reported bal
ance, the outgoing Treasurer obtained from the
County Treasurers the sum ST $3.50, lis 20, and
appropriated the sum of So, 1856 IS, held in
trust for the bill-holders of the Canal Bank of
Cleveland, making an aggregate of 1855 SOP 05;
of which he ..disbursed in payments for the
State, $547 .444 07 and paid over to his success
Or, in different sums and at different times
1908 e65 "a; being the whole amount thus OBJ
lained and appropriated, except $4,I92 81; of
which last sum he retained for exchange. claim
ed to have been paid for the january interest
s., ,725 81. The small balance is included in.
the defalcation as reported by the present Treas
urer.
But not only wns there this actual defct Of
cash means, but debts also existed, contracted
in 1855, and, as to the greater portion, without
warrant OF law, to the amount of $685., ,665 IS.
These debts originated in supplies and labor,
furnished to the State aad its institutions, for
the most part in good faith; and the creditors,
therefore, could not properly be denied pay
ment.
The actual condition Of the treasury is exhib
tied by the following statement:
Aggregate of deposited with failed
banks and bankers, retained for exchange
and unlawfully distracted $sosoo5 70
Add the amount, retained exchange paid
for January interest 1856 s-o5 81
Also the ammount Of debts Of 1855 unpaid 6sa665 IS
The total amount is sl.sl6aos as
This total exhibits the amount by which the
,ondition of the Treasury was worse than IL
would have been had no money been deposited
except with depositaries giving ample securi-
Iles; had arrangements been made with these
depositaries, as they doubtless might have been,
fOr the payment of the interest on the State
debt without cost for exchange; had no money
been unlawfully abstracted; and had no debis
been created to be paid out of the revenues of
subsequent years.
Now if from this total of 81 ~, ,306 05
There be deducted the reported
balance Of Nov. Is, 1855 104,570 so
There viii remain $74l yS25 IS
This remainder is the amount left, with an
empty treasury. as charge upon the revenues
teS-r q Il.
rs means to meet it might be derived from the
claims against depositaries and against the ex-
Treasurers and their suites: or from revenues
due in 1855 but not then paid. From these
sources have been in fact received:
Payments by Daniel Beckelon ae-