The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1859-08-31
Dennis0n's Idea Of How the State
Money should he Kept

In the Gdzstte's report Of Mr.. Dennison's
speech at Lebanon, we find the following para
graph. He is speaking of the Independent
Treasury Act, which very properly forbds the
State Treasurer from loaning out the State
moneys to any persons, but directs him to keep
it safely locked until it is needed:
"This act purported to be an amendment oil
kellys Act He thought this act of Kelley's
the most perfect system of protection of the
Treasury to be found in the statute books OF
of any State. Kelly's Act authorizes tie State
Treasurer to keep the money received, in State
vaults, or deposit it with corporations or ndi-
viduals, of whose soundness he was satisfied. and
who had given a bond appoved by the State
Auditor and the Attorney General"
1t is amusing, after the experience we have
had in Ohio, that any man should have the au-
dacity to declare Kelley's Act, which was re-
pealed by the Independent Treasury was the
most perfect system of protection o. the Treas
ury to be on the statute books of any State
lfother States have no better protection than
that then God help them, for Ohio has lost
hundreds of thousands Of dollars by this vicious
system. Mr.. Breslin, when he was Treasurer,
lost 100000 directly by depositing the money
with corporations and individuals "ofwhose
soundness he was satisfied, but who did not
turn out to be so sound when the State wanted
the money.
Mr.. Gibson lost money in the same way
The "bond' is apt to prove ofbut little account
The State officers whose interests it is to ap-
prove it, are not apt to be very patriotic when
the money is to be deposited with personal and
political friends, who aided in their election
They will not be too scrutinizing. If(what is
unusuaD they do forget the consideration above
alluded to, and look to the bond thoroughly,
they are liable to be deceived in the circumstan-
ces of the bondsmen who, when an occasion a.
rises when it becomes important, are not worth
as much as they were taken to be.
Keley's system led directly to fraud. The
State officers, of whatever party they happened
to be, embraced the opportunity to loan out the
money either to oblige their friends or with
view to their own pecuniary aggrandizement |
Had the present Independent Treasury system
been in operation instead of Kelley's, the great
losses of Gibson and Breslin could not have oc.
Cured Thssfact was clearly established by
the Investigating Committee, in their report of
last winter No sooner were Treasurers elect
cd Than they were besieged by friends, asking
for their deposits, offering to pay bonuses for
them, and frequently showing how much they
had done to aid in their election 1t was diff
ficult to resist such opportunities, and the
rreasdrels' virtue fell before them.
Frequently the bondsmen OF the State officers,
Is a reward for their services, would ask and cx-
oect that the State moneys should be deposited
with them! Placed under the weight Of obli-
cation and pressed on every side, how could the
State officers be too particular about the bonds
'f their own bondsmen? In various WAYS the
ystem was corrupting, and led to immense loss
o the State. II there were no other reason
Why Mr. Dennison should not be elected Cover
lor, his opinion on this question ought to suf-
ice. There is no safety for the State moneys
xcept in law that absolutely forbids its be-
ng loaned out to any persons, and which re-
uires it to be locked up in the Treasury. This
S the system we now have, and which MI Den {
lison wants repealed. He and his friends
lain the State money to speculate WITH to be |
Ised in the shape of loans to accommodate per-
onal and political avorites.- Gin. Eng.