The Tiffin tribune. [volume] (Tiffin, Ohio) 1848-1859, 1859-01-14
CANAL BANK OF CLEVELAND.

iney VIII pe read with very general IN
terest
CANAL BANK or CLEVELAND.
Since my last report IL has been discov.
cred that there is an over issue by this
Bank Of some Si8. 500 A there was a
surplus in my hands after redeemina what
was legally outstanding, / continued to NJ.
deem those notes. till the last dollar was
exhausted. There remains. still unredeem.
ed, and for which | have granted oertiii.
Gates, sl2. 500.
Whom this over-issue was discovered,
j. M Armstrong, the Receiver, visited
Mr. Breslin IN Canada, to learn. II poasi-
bio, the history ot this transaction Mr..
Brssln's version Of tho matter, as learn
from Mr.. Armstrong, is this:
a lew months pre-, ious TO lhe failure
Of the Bank, a Nc, MoMineu. of Akron,
who was largely interested In the Bauk,
came into Tho Treasury, and asked IL he
{ (Breslip) J had received $50 600 Of Ohio
State Stocks IN account Of the Canal Bank
OF CloYeland, and on being informed that
no such stocks had arrived, manifested
considerable surprise, remarking at tie
Same time, that they had bought that
amount Of stocks Of Messrs. Atwood q
Co, aud had ordered them transferred.
and forwarded TO this olioe, Immediately.
as they were in great want Of circulation
lie requested Mr., Breslin to have that
amount Of notes signed, and registered,
50 AS 70 be ready for delivery immediate.
y on receipt Of the bopda. Mr., Breslin
ordered The Register TO prepare the notes,
The next day, Mr.. McMillen called again,
aud inquired II the bonds had arrived,
aud being answered in the negative, re-
quested Mr. Dreslip to Jet him take the
amount notes which had been number
ed aud registered, SIS, 800. that the bonds
would certainly arrive that day; that
Messrs Atwood & Co had probably sent
the bonds to the Bank at Cleveland, in.
stead Of direct to the Treasury as REQUEST.
ed, aud that the Bank would send them
Immediately on arrival Relying on this
statement, he gave him tho circulation,
but the bonds never came ba.su5s9 Ia.
The Receiver thinks the books Of the
Bank oorroborste in part this statement.
About this time, the Cashier, Mr., Sever.
ance, credited himself as a depositor 10
this amount, SlS,500 Had he charged
circulation account as he should have
done. it would have shown discrepancy
between his circulation and stock account
Had he put In circulation, without cred
iiing himself, or some one else, his cash
account would have been over hatamount
To avoid these difficulties, like a very
shrewd book keeper. desirous Of covering
up very dirty transaction, he credited
this amount to himself lie af,erward.
charged himself, and credited the same L
Mr. Hewitt, the President After tht
failure Of the Bank, Nj. Hewitt claimed
this credit among others, as an oifse
against his bills payable, and II was allow
cd him by tho Receiver, no suspicion o
this Transaction having existad at th
ttime. Suit-has been commenced agans
the President TO recover back this amount
Should II be recovered, il will be ample {
meet the over-issue, aud leave a balano
for the general creditors,
SENECA COUNTY BANK.
This Bank went to protest on the It'll
day Of March last. have redeemed o
its circulation 800. $40, being more, b.
S819, than should have been outstanding
There is left 2,12l still in my hands
belonging TO the Bank. On protest
Immediately appointed Hon. w. b
Thrall as Receiver, who took possession
Of the books and papers Of the Bank
Soon after, Judge Thral was appointed
Comptroller Of the Treasury, aud there
upon he resigned his position as Reeeiv
or. thereupon appointed ] 7. Clay
poole to fill the vacancy, who at once CAV,
bonds, aud entered upon the duties o
The post. No assets Of any valve wer
found. 1t will be seen by the annexe
history Of the Bank, carefully compile,
from It's books by the Receiver, that o
the 25th day Of April. 1857, the stock
holders met, and divided an the asset
among themselves, leaving the circula
tion to be provided for by the stocks de
posted with the State Treasurer. Al
though this transaction was wholly ille
gal, yet having provided for the geners
creditors, no wrong would have grow
out of IL had there not been an oyer-issu
Of circulation still unproyided for, and an
known. except to the parties concerned !
the fraud What the amount Of th
fraud is. l am unable 10 say but III
probabilities are that il is S2S.000. Z
! S89, ,987. The Receiver has given motto
to the bill holders to return the oircull
tion to him, giving receipts for the SAM
aud willcommenoe saitsgainst the stock
holders 10 recover back the amoant b
them divided. There is no doubt Of the
Inability for every dollar Of this Ovsr-i'
sue. l3 glrau1a ea r.ro f
But. while these suits arc pending, th
bill holders must wait for their money =
!; The opluion seems to bs very gsnefsl h
the State, in good faith. is notonly bouT
TO take up the over-issue Of this Ban
but also the oYer-issus Of the Canal Bar
J Of Cleveland This opinion is liudoIb
, sdly founded on the rule of law, that
/, principal is bound BY The acts Of his ageI
so far as he has authority to act for hiI
. These frauds could not have existed, e
: cepl by the acts Of an agent Of the Stal
= IL is also equally true that the law po'
Z lively forbids the Treasurer from issull
0 more circulating notes than tbere we
stocks deposited, But. haYing conseu
cd 10 become kind Of stake holder
l4- ~ Kan H.. .o,I fha Uanlu