Cleveland morning leader. [volume] (Cleveland [Ohio]) 1854-1865, 1859-01-04

I Federal authorities may require. Under the act
of last session the County Treasurcrs through
out the State are made depositaries Ofthe State
as well as the County revenues; of the revenues
derived from canal tolls and other sources,
as well as those derived from taxation. They
are also constituted agents for the transfer OF
public funds and fiscal agents of the State, un-
der the law. Yet, these officers are not ap.
pointed by the State Government; are not re
quired to give bonds TO the satisfaction of any
State officer; no State officer is authorized to as
certain the suficiency of the bonds actually Civ
en-, or to require, IN proper cases, new bonds or
additional securities. The whole matter Of these
bonds /, left where former laws placed it, under
the supervision of the County Commissioners,
and it may well be doubted, whether the condi-
lions of those heretofore given apply to all the
duties required by the recent treasury law.
This is a matter which deserves, and will,
doubt not, receive YOUR attention. While you
will probably think il best to adhere to the plan
of fconslituting the County Treasures State de
positaries, rather than Tecur to the plan, which
seems to me preferable, of directing the selec-
ton of depositaries by the State Treasurer, you
cannot fail to appreciate the Importance of
throwing around the public deposits, in what
ever hands, all practicable guards and securi-
ties.
1Q6 OLneT DOluG Ol DcbNtcG luo
Federal and State systems which seems to me
most important in this The Federal system
prescribes the medium in which payments may
be made into the Treasury. 1t directs that all
such payments shall be made in gold OF silver
or Treasury notes. A corresponding provision
in State legislation would require such payment
in gold or silver, or the notes of specie paying
banks organized and regulated by State laws.
The act of last session makes no provision at
all in relation to this very important matter;
and, by the omission. seems virtually to require
the receipt, for taxes and other State dues, of
whatever may be current as money in the sew
eral localities where payments are made. Such
has understand, been in fact the general if
not universal construction of the act by the
County Treasurers aud other public officers
Thus construed, the act fails wholly of its
intent 1t allows the TreasureTs to receive,
and under it the Treasurers have actually re-
ceived, a large proportion of the taxes IN the
notes of numerous banks of other States. 1t has
thus virtually Encouraged the circulation with
in our limits of q currency subject in no respect
ia the control of our legislation, and, to this
extent, has promoted deterioration rather than
improvement of the circulating medium. The
paper thus paid into the different Treasures is,
at best, only the representative of money in the
possession of the banks which issue it; and
thus, to the extent Of its reception, foreign
banks and not the TTeasurers have been the real
depOsitaries of the public funds Instead of in
creasing the security, it has thus increased the
insecurity of custody.
l respectfully recommend the correction of
these defects. If it shall be decided that the
County Treasurers shall be continued as depOs-
itaries and agents for the transfer of State
revenues, they should be subjected, at least in
respect to these funds, to the supervision of
State officers, and required to give ample bonds,
to be deposited with the State Treasurer, for
performance of these duties. Nor IS It less i'm
portant that the medium in which taxes may be
paid, be ascertained by positive legislation A
provision requiring such payments to be made
/ in coin or specie notes of our own Banks would,
in my opinion, be safe, useful, and not ineon-
venient 1t would be safe, for every dollar in
the Treasury would either be specie or the equiv
alent of specie, made such, not merely by the
/ solveney of the Bank issuing 1t, but by the
guaranty of all the Branches of the State
\ Bank, or by State and Federal Stocks in the
actual custody, rendered absolutely secure by
your iudicious legislation, of the Stale off
GERS; it would be useful, for it would pro
mote q sound circulation of specie and specie
notes and it would not be inconyenient, for
81, ssS firculation. obeying well known pIincl-
The debt Of the State Is Of two classes, REIN
bursable and irreducible the former embraces
the foreign and domestic liabilities payable aite
certain fixed periods: while the latter is consti
tuted of the proceeds of lands, granted BY Con
qress for the support of Schools and Religion
received into the Treasury upon sales by tn
State, under pledge to pay six rer centum OIL
the amount, for the same purposes, forever.
The reimbursable debt has been sometime
; spoken of as the whole debt of the State, bu
the irreducibe differs from it in nothing excep
E that it is permanent, and incapable of reductlo
E but, on the contrary, certain to be gradually IN
: creased until the last proceeds OF school an
ministerial lands shall be received. 1t follow
. that no real reduction of the amount of th
State debt can be effected except by pa7meni
n exceeding in amount the sums derived IRON thes
S lands.
| During the last year the reimhursable del
, was increased by 500, 900, being the amount
: the temporary loan authorized at your receI
session, and the irredueible by S69, ,6O2,ss, b
n ing in the amount of proceeds of School ar
= Ministerial lands received into the Treasury :
e 1t was diminished by the payment of Sl2,OO4'l
e of foreign debt. At the commencement OF Il
o present year the aggregate debt of all descri
= tions was SI7, ,I69, ,972, "a.
OF this the sum of SC, AIS, ,525, 81 will becou
: PAYABLE after the 3Ist of December, 1860.
a have heretofore invoked the attention OF yo
predecessors, as well as your own, to this m
}, turing liability; urged the propriety and necess
N tv of seasonable provision for 1t, and suggest
\. what seemed to me the best modes of makll
n that provision 1t is to be regretted that
" proy,sion has been made If seems highly pr
q bable that, had the necessary authority be,
m conferred BY the Legislature on the Comm
,e sioners of the Sinking Fund, the means to p
er so much of this debt as will not be discharg
ix by other resources, might have been obtain
e. during your recess, through new loan at +
per cent or even less rate 1t may be Il
e such loan can yet be negotiated, and l tn
+ that the magnitude of the saving to be thus
m fected will command for this subject your earli
of attention.
10 Under the operation of the very sanitary act
!; the last session in relation to the Sinking fuL
"a the sums legitimately belonging TO 1t, out mere
~ fore appropriated under legislative sanction, 10
State purposes will doubtless be replaced throu
the additional levy required by the act, aud futu
er diversions to any other uses than those to VIII
ic the fund is pledged, will be prevented Under
IS other act providing means for remDursing tne se
is- porary loan, over two hundred thousand dolls
- will soon be paid into this fund 1t will not be
ouired for payment of the loan until July, 1860
ie Provision should be made for its sale and prod
e; tive investment during the interval:
* An act of the last session prescribed rule
Tal the uniform taxation of banks The justice OF 81
lie a rule cannot be successfully impeached, noI ca
M be denied that property employed in banking sh0
~, hear a proportion of the common burden equal
that imposed on other property. Upon the pc
whether the rule prescribed is in fact equal, dir
II ences Of opinion may well exist; but repeated
cisions of the Supreme Court Vf the State le
ny no room for question that the r,.le Of the act
an substantially, the rule of the Constitution )
he for expectation that it can DC mateTlaIy chl1hs
me while the Constitution itself shall remain
tn changed. .
~ 1t Is claimed, however, by the Banks organL
lll -,ndn- the act of lS45. incnrporatlng the 81