The Tiffin tribune. [volume] (Tiffin, Ohio) 1848-1859, 1859-01-14
soaeea County Bank-.saIr. Cinvpooless
Statement


sonoca County Bank-..Mr. CIaypooless
Statement,
We ebOcrfully give place 10 the following com.
municaton Of Hon. @. X Watson. published in
The SANprsKr Rrursra Of Monday, in reply 10
some Of the alleged misstatcments Of Receiver
Claypoole with regard 10 the oyer.issuo Of Sen,
coa County Bank notes;
MEssRs EpIrons;-.The roport Of The Receiver
Of the Seneca County Bank, Mr. Claypoole, con.
tains some statements at variance with facts, and
It seems proper that should state what came un.
der my own observation as 20 one oi Mr.. C.'s
statements. 1t might not be proper but for the
fact that the reports reckless Of the reputation Of
those with whom It deals The statement in
question Is as follows; "Thcsc operations appear
TO have succeeded 80 we'll that on the 18th Of
April, 1851, within ten days Of the time when
the Bauk was closed It was repeated. and s3l,.
657 notes for circulation obtained from Treasurer
Gibson, for which no receipt was given, or bonds
deposited, no credit given on the books Of the
Bank and no charge made on the Treasury books;
and their issue only became known after Mr. Glib.
sons resignation, from the accidental discovery
Of a loose memoMndum in the Trcasury Office
They were returned July %, 1861, and then, for
the fret time, appear on the books Of the Bank"
As the Receiver is, or assumes by his report 10
be, "A historian, ne should have known more about
the over-issue Of which he speaks. The facts as
10 this item are these; Soon after Nlr. Gibsont
resignation, Mr.. johnson called on me for legal
advice lie said he had thirty four thousand
dollars Of he circulating notes Of the Seneca
County Bank in his possession for which no set
Element, or entries on the books Of the Bank. had
been made; that he had received them from the
Treasurer Of State TO prepare foe circulation and
not for use until securities should be procured
and properly deposited under the law. Mr.. John
son informed me that the understanding was.
that Mr. Gibson would purchase the sccuri,ies
and draw tor the amount upon the Bank; but no
dro0 had come, and he supposed no such pur-
chase had been made. He further said that he
was bound by his agreement 70 return that amount
Of bills 10 the Treasury, and "a Mr. Gibson had
resigned. aud the Bank had gone into liquidation,
nothing further could be done in the matter. and
the notes should be returned unless the dt,osit
had been completed by Mr. Gibson at the pruivr
tAAANs AAN NtfANNA W. NANN ANtAaNh " hllNM NhNt
the legal effect would be Of burning in the pres
ence of reputable witnesses, aud some one Of the
State officers, that amount, and let the matter
rest. This was, as he stated, TO avoid adding
anything to the public excitement prevailing at
the time. This matter was the subject Of several
consultations, and finally went to Columbus 10
sec to il. was informed on my arrival there
Ia Nh, I,1 Al ..rA
transaction, and that the engraver's account with
the books aud papers in the office, showed a va
ration Of less than five hundred dollars between
the securities on deposit, and the circulation Of
The Bank Under the circumstances, thought
it best to await tho arrival Of Mr.. johnson, who
was telcgNphed, before holding an interview
with any one connected with the Treasury.
On Mr.. JOhnson's arrival, he was called before
the Grand Jury, aud after his examination there,
explained the matter in my presence to Mr.. Stone
and others in the State offices. There certainly
was no claim, at the time, in my presence, that
the facts had been learned from any "loose mem
oandum," or from any other source than Mr.
johnson himself. The questions mainly talked
OF with those gentlemen were the proper course
Of the Treasurer under the circumstances, aud
the relation of the State TO the billholders. It's
proper 10 add that Mr. j. at all times expressed
TO me determination to correct any error there
might be in the transaction.
It may not be improper to call attention to an
other item which the Receiver introduces under
the head of Books closed and stock paid back. ."
Il is as fOllows:-
FEBRuARY ., 1857, (lrom the minutes Of the
Bank k)-Stockholdcrs met pursuant 10 adjourn
ment. and, ON notice. unanimously
RESOLVED, That the Bank 90 into liquidation
in April next, aud the Cashier be requested to
close the books and settle with stockholders
(Signed) l.. BALrzELL, President.
"In accordance with the above resolution,
April 25, 1857, the Bank, IN ONE DAY, closed its
business aud books, by paying off its stockhold
ers the respective amounts of their stock, and
transferring the indebtedness and the assets Of
tho Bank TIA new Bank, ostensibly organized
under the law Of 1851 but which, believe, has
not been formally Or legally recognized"
l would ask Mr.. O. if he has looked at the
Ohio State Reports, vol. 5, page III? Ifho has
not, would recommend him to do so. think
he would find reasons honorable and prudent for
the resolution of February 2d, 1857, and the sub
sequent close of books and settlement with the
stockholders by the Bank 1t would be well for
him in his further researches 10 look into the Of
fees Of the Executive Department. If be does so
he will find, unless some omission has occurred,
a full recognition Of the NEW ORGANIZATION OF
THE BANK. At least If he will call upon the
Bank itself, he will find certificate, bearing the
seal Of the State, with the proper signatures, con
ferring upon that organization banking powers
under the act he refers to. @. X WATSON.
January 7th, 1883.