The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1859-01-19
The Canal BanII FFaudS.---The Cat
ont of tlle Bag.
"Button, Button, Whose Got the Button!"

"Button, Button, Whose Got the Bltton!"
NURSERY PLAY.
The Official report of the Treasurer Of State
has unveiled the rascally transactions Of the late
dcfunct Canal Bank ofths City, and shows that
over issues obtained by fraudulent representa-
tions has caused the depreciation its bills and
the consequent loss to its bill holders We
have long smet this rat, and are glad although
at this late day, to have him smoked out. The
people are indebted to the vigilance and perse-
verence Of Mr.. Armstrong, the Receiver for
this tit-bt ofinformation. Dr. Acklcy, it will
be remembered, when this "Independent" In
stitution shut down upon some SIT 900 Of his
funds, took crow bar and SIedge Hammer and
walked through the iron easement to its vault.
But that was found empty as Mahomets tomb.
The money was out and the question then arose
''who has got the money!" The question is
now answered fully and officially. Here is the
extract from the Treasurers Report rela ting to
this subject Phindealer.
THE CANAL BANK OF CLEVELAND.
Since my last report it has been discovered
that there is an over issue by this Bank oi some
Sl8, 500. As there was surplus in my hands
after redeeming what was legally outstanding,
| continued to redeem these notes, till the last
dollar was exhausted. There remains, still
unredcemed, and for which have granted GER
tficates, S12, 500.
When this ovcr-isSue was discovered, S. NJ.
Armstrong, the Receiver, visited Mr.. Bresln,
in Canada to learn, if possible the history of
-, I.,,p, II
matter, as learn from Mr. Armstrong is this:
y few months previous to the failure Of the
Rank, a Mr.. Nc. Millen, OF Akron, who was
largely interested in the Bank, came into the
Treasury, and Inquired ifhe (BresIin) had recei-
yed $4,000 Of Ohio State Stocks on account
of the Canal Bank of Cleveland, and on being
informed that no such stocks had arrived, mani
tested considerable surprise remarking at the
same time. that they had bought that amount
Of stocks of Messrs. Atwood and Co., and had
ordered them transferred, and f0rwardcd to this
office, Immediately, as they were in great want
Of circulation.
He requested Mr.. Brcslin to have that amount
of notes signed, and registered, so as to be ready
for delivery Immediately on receipt the bonds.
Mr.. Breslin ordered the Register to prepare the
notes. The next day Mr.. Mr.. McMiIlen called
again, and inquired if the bonds had arrived,
and being answered in the negative, requested
Mr. Bresin to let him take the amount Of
notes which had been numbered and registered
SIS, 500, that the bonds would certainly arrived
that day; that Messrs. Atwood & Co. had
probably sent their bonds to the Bank at Clevc-
land, instead Of direct to the T,gasury as re-
quested, and that the Bank would send them
Immediately on arrival. Relying on this state
mcnt, he gave him the circulation, but the bonds
never came.
The Receiver thanks the books of the Bank
corroborate this statement About this time,
the cashier, Mr.. Severance, credited himself as
a depositOr to this amount, SIS, 800. Had he
charged circulation account as he should have
done, it would have shown discrepancy be-
tween his circulation and stock account. Had
he put in circulation, without himself or some
one else, his cash account would have been over
that amount TO avoid these difficulties, like
a very shrewd book keeper, desirous ofcovering
up a very dirty transaction, he credited the
same to Mr.. Hewitt the President. After the
failure Of the Bank, Mr.. Hewitt claimed this
credit among others, as an offset against his
bills payable, and it was allowed him by the
Receiver; no suspicion of this transaction hay
ing existed at tho time. Suit has been common
ced against the President to recover back this
amount. Should it be recovered it will be am
pie to meet the over issue, and leave balance
for the general creditors.