The Cadiz Democratic sentinel. [volume] (Cadiz, Ohio) 1854-1864, 1859-03-02

loaned Johnson and Gibson was q part OF it, II
am unable TO say. presume il vas" OF the
circulation marked as above stated, that with the
"O," was 70 be protected by Bartlit & Smith,
and the straight mark in red, by G. L. Johnson,
Before we proceed to show what became OF
this circulation. we viii continue, in the order of
time, the details Of the transactions ct Green's
borough The good people in that vicinity be-
came exasperated at the management OF the
bank. 1t furnished no facilities for home ope-
rations. It's peculiar field was little farther
from the redeeming point. II was but an expe'
dent to mpoyerish, instead of TO enrich, it full
flment followed too close upon its words Of prom
Use. Mr.. Smith endeayored to quiet this Ihostil-
ity on the part of the citisens Of Greensborongh,
but he failed to convince them that the institu-
ton was sound" and they persisted in "Adher-
ing to the idea that we and Waggoners were
friends; and petitions were gotten up for the re-
peal of che charter, which he opposed in the Ma
ryland Legislature, and with success. In order,
we presume, to place the institution upon more
solid basis, and concentrate its entire mansge-
ment into the hands of more responsible parties,
who would have higher regard for the interests
and wishes of the people of Greensborough,
I" the former stockholders were compelled TO sell
out to the subsequent stockholders, who formally
ly paid into the bank, in coin, $4O,OO0-in place
OF that which had previously mystGriousy disap
opeafed-but this they took out again the same
day, it having been obtained from John Thomp-
lsonro New York, for the oc aston. They then
substituted their stock notes, payable in the notes
OF e bank, for those of the I" former stock
holders" for 100000, the balance of the capital
sock; and 10! the bank had changed owners,
and under new auspices, and upon a more SUBJ
stantial basis, it now continues its promises to
pay; Spencer Hitch, President, and Henry R.
Staley, Cashier. The expenses OF resisting the
repeal of the charter Of the bank were about
$4,000, and were paid out of the funds of the
bank. Who got the money?
Recurring to the 100000 of the marked cir
culaton above referred to, obtained by Bartlett
g. Smith, for which Breslin's notes were given,
1t appears that $4,000 of it were loaned to
Charles L. Johnson and William H. Gibson
Mr.. johnson admits, in his testimony, borrowing
$25, 900 of Greensborough money OF Breslin at
the time referred to, but says it was an indiyid-
ual transaction outside of the Treasury, Breslin
representing himself as the agent Of Bartlett Il
Smith, although he considered it transaction
with Breslin alone, and therefore gave his note
for the amount, payable to Breslin or bearer, in
she notes of the Greensborough bank, and which
note he subsequently paid. This money thus
obtained by johnson, was used by him iii the
purchase of his stock in the Seneca County Bank 4,
Il which he became Cashier under the Gibson
utchase and reorganization. Gibson borrowed
be other $25, 900, and gave his note to Breslin
payable in one year, at three per cent interest -
There were no endorsers on the note, and he OBJ
iained the loan OF Breslin through previous ar
.angement made by johnson. Gibson did not see
Breslin in relation to the matter until after the
.oan was arranged, and when he didso ,Breslinre
presented himself as acting for Bartlett Smith,
although Gibson had an t'impression' that Bres-
lin himself had an interest," in the Bank. These
,otes Of the Greensborodgh bank were paid out
the Seneca County Bank in its usual business
transactions. To determine the precise nature
{ this loan, and of whom made, in fact, the fol-
owing queestion was asked Ben. D. Smith:
"Quesfion- any part of the $780, OBJ.
aimed from the bank (Greensborough) by Bres,
lin, loaned to VIM, H. Gibson and Charles L
johnson, either by you or Mr.. Breslin as your
| agent?
Z" Ansoer was not aware that Mr.. Breslin
acted as.our agent at that time. 1t he made loans
| to those parties, he must have made them or
| his own account, or for the former owners O
the bank. He was never authorized to act al
| pur agent in making loan to them of $5O,000
| nor did we ever make loan to them of tina
i amount for ourselves"
There can be no doubt, therefore, that thi
loan of $4,000 to Gibson and Johnson, to enabl
them to purchase the Seneca County Bank, wa
made by Breslin for himself, and not for othe
parties. And this transaction goes far to re
|
ownership of the Greensborough Bank, at tn
time of its organization.
In January, 1854, Waggoner, the father o
that"Ohio Savings Institute" suggests to Bres
lin the purchase of the bank, to "help him owe
difficulty" Breslin refers to Smith. Smit
agrees to purchase, and furnishes the money
SO he says, Waggoner becomes the ostensbl
owner--the bank is organized, and issues its cir
eulation. Breslin gets $lO0. 900, which is sen
, t'by the stockholders" to Bartlett Smith
$50, 900 for them, and 1000 for Charles L
poanson--so marked as to determine which is :
redeem ;-Breslin, as agent, loans $25,OU
Gibson, on a years credit, at three per cent, an
sos, 900 to Johnson--Breslin's agency denied b
Bartlett Smith--the $4,000 loaned Gihso
and Johnson, used By them for the purchase {
the Seneca County Bank. Nov, if any furtht
evidence is required to prove Breslin's ownershi
of the Greersborough bank at its organization
: and of the purchase of the Seneca County Ban
! by Gibson and Johnson, through means furnishe
by Breslin, it can be found in the testimony (
: Samuel Waggoner; Christian Bretz, w. 1
, Gibson and Charles L Johnson, and the tort
: GUS testimony of B. E. Smith.
( That there was q precoucerted arrangemel
: on the part of Waggoner, Breslin. Smith, job
n son and Gibson, as to the purchase of the cha
tiers of the Greensborough Bank, and the Sen
p ca County Bank land that their financial tran
: actions, in all their varied ramfcatiohs, we
known to each other; and that the State Trea
d ury was the great source from whence the m ca
{. were at first to be obtained, and from which tn
y were obtained, we entertain no manner OF doul
What became of the other $4,000 obtain
} from the bank by Breslin for Bartlit q Smi'
e and which they were to protect, is not disclose
t, Smith says the receipt of this circulation was
b private transaction, and declines to answ
is whether or not he got it from Bresn. AS
J. have already abundant evidence to convince
1, of the truth Of the matter. he was not press
Is for an answer. --..
b. Between January, 1854, and December, IL
le large amounts of the notes of this bank w
lie nut in circulation. The facilities furnished
81, The banking house Of Bartlt & Smith, and
rs Seneca County Bank, Elkhart, Central, &
rs jamestown Banks Of Indiana, and the St
- Treasury Of Ohio, enabled those interested
le keep afoat, rnredeemed, a large amount OF
no circulation, s 1 :. y
g. But one bank in Maryland did not suffice
ar keep active the accumulated Sinking Fund
nd the State Treasury Of Ohio and the 's
in s aCuMBSRIANp SAVINGS BANK" b
as AZ Cumberland, opened its doors to reeeiy
ed part as permanent investment; Somewh
y, Mr.. Breslin became acquainted gith Capt
nd James M. Schley, an attorney at law, with
ch aptitude for small banking, who directed the
nd tention Of Oh,o's most distinguished fnancie
ok the above named institution. Mr., Breslin, doI
to ing his own, or having greater confidence in
Iu- financial ability of another distinguished fu
TO cier, called to his aid b. E. Smith, of the
of of Bartitt & Smith; and in the Snmmel
of 1856, after Mr.. Breslin ceased to be fTreasu
o. they accidentally, without doubt, "laid owe
In Cumberland for the purpose OF examining
,ks the bang and seeing If there was any objet