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

pAny, for the amO purpose, tll,tOJ ot tbe bonds
hank '5f ciortlnd; 5000, Miami Valley; $1,000,
PrarkHn Rank zanesyiIs. They all The bouda Of
1853, telougng 70 thsss Bsnks and we're taken . New
iee6 purchased In their stead. 70 - saf
How Jfson sot tsse u1nds IN his hands IL mai1r for
Wright aud Gionto explain bet thai be got them IN his
possesson 4 certain, and II enabled him 10 hYpOhecaa
or oil tain money upon them for the time teing.
IL appears lmt Thompson about this time, january.
lss purchased fcr 0ieson The seneea oouny Bank and
he sIher banks named about Si6oOoO Of The bonds pf
1856 for which GIhson paid him BY the Seneca County
bonds Of 1850 900, and 1860 so COO, aud "a cash OBJ
tained q Atwood 4 Co, sSl'oOo The money n the
been RENTED to hen as Gibson says 70 meet the JAnp
ary interest and the money was repaid 10 The State BY
q bends deposited Win tas tfSss o Company oe.
Seneca County Bank, he Hsys. And this money was
again paid By the use IN some unexplained manner o. the
Seneca County Bank Bonds, hrodgh money received
from County Treashrers in the February settlenent
In this as In all the transactions Of Gibson Treasu,
rer, be TO have had two engines constantly At
work each requiring all bis skill for their successful a
agement He had the State Treasury 10 embarrassed
condition. and he had the Seneca County Bank, ne1es
sary appendage to st. both to bs managed 10 shservehs
Interests his necessities. so blended did the twQ e
come that he could not distinguish the Of the
wants Of the one from the other. When the Teaspfy
needed aid he resorted to the Rank, and when the ln
required assistance he resored to the Treasury. pa
lit & Smith and Bresllu, 10 tho exent OF their ingenn
" of the meansin their control were but the anes
and when loans were to be made upon puroned eellat
loan would assume the responsibility for It. would II
they knew, tell the character Of tho coateras Thus,
In the fall of 1885, the Bonds Of the ssneea County Bank
we're in every varied form made to become the eneht Of
successful loans, aud Of ayering disclosure e de.
faleation. lp gsasi e. ed
Pressed BY private and Official business dhsou left
S35 900 Of the 1856 bonds OF the Seneca COUNTY Bank re-
ma ming with Thompson in New York 'SentreiF forgot
- and not until after his resignation did itoccur to
him to call the attention OF b. F. Smith to tae fact
still further and harder pressed In January IL 1857 for
funds for te ordinary disbursements Of tie Treasury at
home and for the payment OF loane abroad he resorted
10 the use Of all Of the Seneca County bonds 100000
OF which hypothecated toAtwood & Co. for adyanc,
eS madei and becoming still ore entabgedin the meshes
Of his continued emharrassrents, and to procure still
further aid he directs his eerk Mr. spaythe to issue
the Seneca County Bank sS4 657 Of additional crcula
ton, In the vain hope that something might arise post
ponc the evil day. or fully avert the foreshadOwed cdla
iy He then knew me $4,000 forgotten" bonds with
cept BY the payment Of loan impossible for him 10 meet:
and he we'll knew the $lOQ 900 with Atwood could not be
released e and he knew s IN sc tast from no sonrcs then
al bonds justify the Issue Of tho circulation or to pro,
tsct ID. He seems 70 have fully awakened TO- the con.
sciousness that the dark hour drawing nigh when he
wrote the hurried letter from Buiaio TO Johnson to sur
render to the Treasurer the everisaned circulation
An instance Of the tendency of these mingled
tons impedimens In the veraeity those
nected with them, furnished by the testimony OF B. b.
Smith this negotiation With Thompson for the sale
Of the Seneca County Bank Bonds 7iltalH
1t that Smith at the time one Of the principal
operators for both Gibson and Thompson in the sale oi
the old and the purchase Of the bonds Of 1856 and
he states that there were no new bonds Thomp-
in advance Of the purchase Of tho 1886 but the bonds
of 1855 and 1860 spoken Of above handed over
Thompsonby Gibson perhapa handed to ue by 0fson
and BY me 70 Thompson In New York at the time Of the
transaction In January, 1857" when the TRANSFER hooks
In the Office of tho transfer agent show that these bonds
1856. rt''sf :; \
Ths, 900 Of tho bonds of 1896 LETT with THOMPSON
and forgotten" BY GIBSON lett at the instance and
request Of Smith, whom Gbson was largely indebted
whether for the $4,000 loa1 spoken Of by Gibson
made Of Smith IN Jyly, a5dSand ly Smith, as made ia
Bresnn but ia from Thonipson IL not Known
that Smith could have the control Of them and thus
secure himself ad besides this, Smith had another IN
centve to this arrangement in which Thompson may
have taken az Important. part. lie. was indebted To
Thompson, and tiese bonds were held by Thompson az
security for th indebtedness Of Smith, and the amount
OF that inebtodnssa was deducted from the amount o
the proceeds Of these bonds Of Gibson and in that man.
ner Smiths debe TO Thompson was paid, and 0ibson's
debt to smith, nt leaving Gbsons interest in the bonds
about $1,000 and above his Indebtedness which was
subsequently arranged between him and Smith. 9EFH
Thus in every transaction OF Gbsop his great reliance
was in the circulation general credit, and the bonds Of
the Seneca County Bank and for the support Of that u.
stitntion upon the Treasury of State. &fu 5}t
The financial and official transactions of Mr.. Gihson
while Treasurer eliminated in his attempt to carry him
self through 1851, and with empty Treasury to pay
the July Interest," Of that year To meet pre.exisnr ia.
btcs be had placed $35 600 of the bonds of the Bank
with Ihenpson as above stated, and to enable him to
make payments for the current demands upon the Treas.
uly BID had pothecatod 100000 additional with Atwood
& Co Eariy In Che Spring Of 1857 tie moneys Of the
Treasury were entirely exhausted, and Gibson abeg
gipg borrower 10 all directions .slt,sss- 3s 31
Tbs Seneca County Bank could no longer be made
available, for neither Illegal circulation nor the $4,000
Gibson swears he spent protect her were
sucentBreslin absent and did not respond to the
earnest demand for aid, If any were ever made OF him
and Gibson himself wandere In search Of relief in
that land Of promise Minnesoa. Hershser his Chief
Cer, under aspecious pretext seemingly too SLIGHT to
blind the eyes of any ee was earnestly requesting he
Auditor 70 let him know in advance, il auy large drafts
were to be drawn and when compelled by dire necessity
drawing against the pufIoined bondspledged with At
wood e. 90. Gibson had previously tested the cfcduiity
OF the General Assembly and the State officers by his
sworn and published statement of the 9TH Of April here.
tofore referred to, IN which he proclaimed an empty
Treasury and defaeatoh Of S57lasI Oh which passed
unnoced and In the hope tha tho evil day was vet aar
Off was gathering together the Straps and remnants In
his hands and under his control for some to him at thai
time underlined purpose which time and circumstances
wefe to develope Confident from his former
at tooneealment that he could yet hold the key Of the
Treasury he was laying his plans for the payment OF the
July interest," when at last the eyes of the State officers
were openedthe Treasury taken possession of on the
18th OF June 1857 and Gibson compelled resign his
Office, and deliver up the keys Of empty Treasury
On this enforced resignation of Mr. Gibson A. p stone
was appointed his by the Governor and
possession Of the Office, Saturday evening June 49, 1877
On Monday June 18th, an examination OF the coalition
Of the Treasury was made by Auditor Wright and VIM
Dennisop Jr assisted, at the Instance Of the Treasurer
by Thomas Sparrow and Inventory taken of ali the
assets then found In the Treasury and S151 90 Ia Cur
ln, t0~
gether with various assets valuable and WORTHLESS
amounting to $99,54 G7 just S7O05 26 less than Mr.
Gibson hal reported as In the Treasury on the TIN
o. April previous No effort was made to obtain from
Mr.. Gibson whatever Of assets or moneys there rnlght
have been at the time in his hands or under his CONTROL
and no Was permitted to be In New York In June and
July following with Securities 10 his possession 10 the
knowledge Of the State officers unattached to the amount
OF $i2O3 80, as will appear bya particular
IN enother RE- Rars S S this Reporti hi real estate to he
amount OF $2UuU was also untouched Mr. Breslin also
at that time known to be Implicated In the dealcation
was not asked to surrender over S20D 009 and perhar
lar larger amount Of the moqey End property the State
IN MS possession but permitted to
from tho reach Of laws We cannotb but consider this
az most unfortunate fenlssness on the part OF our state
officers as We believe that an Immediate attachment cf
everything In the possession Of resn aud Gibson woud
at that time have secured to the State large amount
which may now te considered as irrotrevaby lost \
During the session Il the General Assembly in 1855
proposition vas made BY Mr.. BresiD, Mr. Gibson Gnd
their snrees for compromise Of their respective la
tiles to the State growing of the defaicaton an An
eort was male to relieve to extent the sureties
from civil suit and principals from criminal prosecution
1y an offer to pay the Stac the sum of 250OOO We re-
Ter 10 this more for the purpose than ay otsr
q showing the intimate relations then and yet susisng
between Mr. Gibson and Mr. Breslin and that the former
must certainly possess full and perfect knowledge of
The transactions Of the latter, and Of the character ana
AMOUNT ef the assets now held by him. }f.y aS~
MT Hibson sayH the proposition originated with the
lurees Before 1t was mado, and pending ia oonsdera
lion, he visited Breslin to determine upon IL recsA
and to ascertain the it would answer
oer the State IN order to obtain tho relief desired he
proposed 70 Bresln to offer or $500 payabIe
ten or twelve years, In annual payments upon cond
Ion that he should be released from liabiity to civil
leton. Butths Bresp declined to do but did make a
proposition to Gibson, bnt whether II was made
p any other person s unknown, to pay 100000 In len
ears, II he could be discharged from all criminal we'll
ls civil prosecution. was finally determined the
um at ee5O,0g0 which Gibspn thought could be pald
Tor the reason that the nominal sasets which must s o
iand amounted to near $60O0O0 from which Il was rem
enable 70 suppose with the coopetion Of the surelies
he $250,O could be realiged.r tiiiE6I n gG'|I5
To urge the proposition upon the General Assembly ana
ne state Ocers, the parties In interest procured tha
ervces Of Thomas II, Ford, of Mansfield, and R, d.
,enningon q THIN, In the interview Of Gibson with
lov Ford he always protested his entiroabliy 10 control
,resiin and spoke Of the property and assets from which