The Jeffersonian Democrat. [volume] (Chardon, Ohio) 1854-1865, 1859-01-14
Report Of Treasurer of Ohio.

day Of March last. have redeemed Of
/ its circulation Sl0o,S79, being more by
! 1878, than should have been outstanding
There is left S2,l2l still in my hands
belonging to the Bank. On protest l
Immediately appointed Hon. w. d. Thrall
ms Receiver, who took possession of the
books and papers of the Bank. Soon af.
ter, Judge Thrall was appointed Comp
troller, OF the Treasury, and thereupon he
resigned his position as Receiver. | there
upon appointed J. II. Claypoole TO gil the
vacancy, who 1T once gave bonds aud eu-
tered upon the duties Of the post. No
assets of any value were found. 1t will
be seen BY the annexed history of the
Bank, carefully compiled from its books
by The Receiver, that on the 25th day OF
April, 1851, the stockholders met, and di
vlded all the assets among themselves,
leaving the circulation TO be provided for
by the stocks deposited with the State
Treasurer. Although this transaction
was wholly illegal ye. having provided
for the general creditors, no wrong would
have grown out Of it, bad there not been
an oyer-ssue Of circulation still unpruyi-
ded lor, and unknown except TO the par
ties concerned in the fraud. What the
amount of this fraud is am unable to
say, but the probabilities are that il is
$4,000, or S38, 687. The Receiver has
gwen notice to the bill holders to return
the circulation to him, giving receipts for
the same, aud will commence suit against
the stockholders to recover back the
amount by them divided. There is NO
doubt of their liability for every dollar ot
this overissuo.
But, while these suits are pending, the
bill holders must wait for their money
The opinion seems to be very general that
the State in good fash, is not only bound
TO take up the over.issue Of this b INK, bu
also the over.issue Of the Canal Bank o.
Cleveland. This opinion is undoubtedly
founded on the rule of law, that n princi
pal is bound by the acts oil his agent, Sc
far as he has authority to act for him.;
- These frauds could not have existed, ex
, cep, by the acts OF an agent Of the State
1t is also equally true that the law posi-
;velv bids the Treasurer from issuna
more circulating notes than there wert
stocks deposited. But, having consented
= TO become kind Of stake. holder, between
the bill holders and the Banks, 1t is a
least debatcable question whether tn,
d State is not morally bound 10 assume 'ht
j responsibility OF the acts OF its agent Th
. question should be settled by the Legisla
}, ture, that the people may know what tC
}, depend upon in this class Of cases.
/ Mr.. Claypoole comes 10 the following
=, conclusion
From the facts that have related, it i,
= impossible to resist the conclusion tha
: the officers, and at least portion Of tht
s stockholders, including Mr. Gibson, were
l. well aware OF the ovrr-lssuc, and alsC
= that the closing of the B INK at the tim,
Il and in the manner in which 1t was done
is was to say the least Of it, illegal, and
, that my claim as Receiver. upon The stock
- holders for the amount of stock paid bacI
to them, and upon the assets transferred
is unGUubted. Under advice, have al
!. . ready commenced efforts for the recover,
- Of some OF these assets, and shall tax
e such prompt measures as the delays Of th
l. law will permit, TO recover sutficIen
. amount from the stockholders and assets
as will cover all outstanding claims 70
j. circulation or otherwise and as the stock
o holders (most of them are said to be res
a ponsiblc men, have little doubt but tha
# with some delay, all claims for lis circu
latins notes will be paid with interest.
Tue folio wing remarks in the Treasur
. er'S Report will be read with interest b.
U the Tax payers OF the State. The sug
geslions at tie close are worthy the con
&C sldrration Of the law making power:
o. You will observe that the appropriate
,. for Sec. 3, OF the Canals, has been over
). drawn, 10 the amount Of Sl5,l3l o.
is The Unprecedented foods OF June, dam
n aged the Hooking Canal, aud the South
i ern division Of the Ohio Canal, to such al
e1 ent as 10 render them entirely unnavi
gable Tor the res: OF the season, wihou
=" an expenditure Of some fifteen or twent
q thousand dollars over aud above The ap
ID preparation for this division.
N This misfortune to the State prcsente
a three alternatives TO call an extra sess
ion'of the Legislature. to permit them
remain useless the remainder Of the sea
son, or to pay the expense Of repairs with
y, out express authority of law After
'. thorough investigation Of the facts b
% your Excelency, tho Attorney Genera
the Auditor, Secretary OF State, e,snd Comp
troler, it WAS unanimously agreed lha!
was our duty 10 put them in repair with
out putting the tax payers Of the State
the expense OF an extra session OF lh
Legislature.
+ The following statement will sho,
H. what has been saved to the State by til
D, policy adopted
Receipts from the Hooking Canal from
the time repaired 10 Nov. Is, ia55""$ $l0,lS9 Q
l. Estimated receipts The same as last
p year, for the balance of the season :. 2,OOi 3
Receipts from tIs southern divIs on of
u the Ohio Canal, from the time repair
}. cd to Nov IS, 1858 ............ lS,e99 7
Estimated receipts same as last year.for
tho balance OF the season .,'.'... 4i95 9
Total receipts pts...,........ S3j,559
- Deduct amount paid for repairs over
o appropriation ''''''''''''.'''''''' lSl3i
u Net Gain TO State by repairs. S9o424 !
y Besides this, there would have been
large falling off in the receipts Of tn
Northern section of the Ohio Canal,
> these sections had not been repaired.
" Estimated expense OF extra session:
" Expenses per diem of members and Off