Ashtabula weekly telegraph. [volume] (Ashtabula, Ohio) 1853-1873, 1859-01-08

Ter seems 10 intend the actual keeping OF ail
public nioneys IN the hands of Saie aud Coun-
~ Trensnrers until required for disbursement in
discharge Of public obligations. II The safety
OF the public moneys u equally insuredhy either
mode. the forme' appears to be entitled to pref
ercncei Tor money Is machinery, whose work is
exchange, and II Is obvious that the withdrawal
IRON use OF considerable sums for considerable
periods must In some measure interrupt and en-.
barras the operations Of business. But safety
Is the paramount consideration, and no mode of
custody is admissible which does not secure il
MS far as il can be secured in any mode.
In n iorRer communication thought Il my
duty 10 recommend TO your consideration plan
Tor the safe keeping aud disbursement of the
public moneys, which seemed 10 me TO combine
security with convenience. That plan failed 10
commend itself to your approval; but you did
not omit to establish by law system of repu
Lotions, intended 10 accomplish the same gene
raj purpose Few measures fulfil perfectly the
designs Of their authors; Ond some defects have
become apparent in the practical workings of
the act Of last session to which think proper
to direct your attention.
The act itself was doubtless designed to in.
corporate into the administrative system Of Ohio,
the leading provisions of federal legislation on
the same subject There nre, however, among
and that which has been thus inaugurated IN
our own State, two which seem TO me especial
" worthy Of consideration Under the Federal
laws oil officers having custody OF public money
are appointed by the Federal Government and
ere required. from time to time to give such
bonds, with such securities as the Federal au-
thorities may require. Under the act Of last
session The County Treasurers throughout the
State are made repositories Of the State as well
as the County revenues; OF the revenues deriv-
ed 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 under the
law. Yet these officers are not appointed by
the Sta'e Gov rnment; are not required to give
bonds to the satisfaction of any State officer;
no State officer is authorized to ascertain the
snficiency of the bonds actually given, or to re-
quire, IN proper cases, new bonds or additional
securities, The whole matter of these bonds is
left where former laws placed it, under the gu
pervisiOn OF County Commissioners and IL NAV
well he doubted whether the conditions Of those
heretofore given apply to all the duties required
by the recent treasury law.
This is matter which deserves, and will,
doubt not, receive your attention. While yOn
will probably think it best 10 adhere ID the plan
of constituting the County Treasurers State de-
positaries rather than Tecnr 10 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, ull practicable guards and seeuri
ties.
The other point Of difference between the
Federal aud State systems which seems to me
most important is this The Federal system
prpScrbes the medium in which payments may
be made into the Treasury. Il directs that all
such payments shall be made in gold or silver
or Treasury notes. a corresponding provision
at al in State legislation would rquiIe Snch
payment in gold or silver, or the notes of specie
paying banks organizrd and regulated by State
laws. The act Of last session makes n prnvi.
Sion in relation 30 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 rs money n the seve-
raj localities where payments are II ade. Such
has, understand been in fact the general it not
universal construction of the act by the County
Treasures and other public officers
Thus colISi rued. the act fails wholly of
its intent. IL allows the Trea>urers to re-
tualIy received, a large proportion of the
taxes in the notes Of numerous banks Of
other States. 1t has thus virtually encour-
aged the circulation within our limits of o
currency subject in no respect 10 the con-
troll of Onr legislation, aud, to this extent.
has promoted deterioration rather than i'm
provemenl Of the circulating medium. The
paper thus paid into the different Treasu
res is, at best, only the representative o.
money in the possession of the banks which
| issue it; and thus, to the extent Of its re-
ception, foreign banks and not the Treasur
ers have been the real repositories of the
public funds. Instead of increasing the
security, it has thus increased the inSecuri
ty of custody.
respectfully recommend the correction
of these defects IL il shall be decided
that the County TreasurerS shall be contin
ucd as depoSitaries and agents for the trans
fer of State revenues, they should be sub
jectcd, at least in respect to these funds, t
the supervision of State officers, aud re
quired to give ample bonds, to be depOSitet
with the State Treasurer, for the perform
ance of these duties. Nor is it less impoT
lant that the medium in which taxes ma.
he paid, be ascertaiued by positive legiSa
laton. A provision requiring such pay
ments to be made in coin or specie ncte
of our own Banks would, in my opinion, b
safe, useful, and not announcement. 1t woul'
be safe, for every dollar in the Treasury
would either be specie or the equivalent c
specie, made such, not merely hy the so
vency of the Bank issuing it, but by tn
guaranty of all the Branches Of the Stat
Bank, or by State and Federal Stocks i
the actual custody, rendered absolutely ST
cure by your judIcious legislation, of th
State officers il would be useful, for
would promote sound circulation of speci
and specie notes; aud it wonld not be il
convenient, for the circulation, obeying we
known principles, would increase aud di
minsh with the demand.
+ The debt Of the State is of two classes
reinlhursable and irreducible the formc
embraces the foreign and domestic labili
ties payable after certain fixed period; Will
the latter is constituted of the prOceeds o
lands, granted by Congress for the supper
Of Schools and Religion. received into tn
Treasury upon sales by the State, under
pledge to pay six per eentum on the amount