The Union and journal. [volume] (Biddeford, Me.) 1858-1882, 1860-03-30

| entered to the credit oil tue otate whence
they were speedily drawn out on some such
check as already described. AT the time
of this discount the State already had de-
posit in the Bank of several thousand dol
lars, and il is therefore absurd to pretend
that the money obtained on the note was
possibly needed for any exigency in the
Treasury. When the note fell due and was
sent to Boston for collection, Peck was out
Of funds and 1t was accordingly protested
and returned to the Mechanics Bank on the
2sih of Dec. On the 29th, Mr.. Dow, one
Of Peck's bondsmen, called on Mr.. Haincs
and told him, according to Mr. Dow's tesli-
mony, that Peck was in trouble pecuniarily
and requested him as measure Of safety
both TO the State and the bondsmen, not to
honor any more Of Peck's official checks
upon any deposit that might be in his Bank
to tie credit of the State. II was in evil
dencs before the Committee also, that at
The time Dow thus advised .Haines, Peck's
delalcation was matter oflcommon street
talk in Portland, especially Known in fnan-
cial circles. Instead Of paying heed TO Mr..
Dow's request, Mr.. Haines seems to have
construed It into hint to make an effort in
some way to get payment on the note. Ac-
cordingly about tea-time Of the day in which
Mr.. Dow had made his request, Haines and
Stephenson, the President and Cashier,
called on Peck, and as Peck says, found
him "all broken down." and demanded pay
ment Of the note. They informed him that
the State had deposit Of something over
81, 100 in their Bank, and after much pres
sing, as Peck says, they obtained from him
an official check for precisely 81 100, and
wanted one for 5000 on some other bank
which Peck, having used nearly all the sur
plus of the State funds, was unable to give.
Finding the next day that the exact SUN TO
the credit Of the State was 81, ,l68 10, Peck
says that either Stephenson or Haines, can't
remember which, called on him for check
for the balance, of S6s 20, which he abso-
lutely refused to give.
Remembering That Peck's name as "Trea-
surer" was put on this note at the instance
of the Bank; that it was put there wrong
fully and without any authority Of law; that
the idea Of the money being needed by the
State, or even being in any way used for
the States benefit, is u singular pretense;
that the Sl.lO0 was Obtained from Peck
after the Bank was duly npprised that Peck
was u deiaulter, aud indeed alter that fact
was notorious as far as Portland was con-
cerned remembering all these facts, the
Committee have unanimously concluded that
the 81 100 was obtained without law and
without right, and they therefore recon-
mend that repayment thereof be demanded
of the Mechanics Bank, and that it be en-
forced in the mos, summary manner.
TRADERS BANK, BANGOR. A very large
number of time checks and checks to be
held by agreement, were taken by this Bank
from Peck as Treasurer, and 1t is under
stood that some $1,000 remain unpaid
mostly drawn on the Suffolk. Peck's tran
sactions with this Bank IN the way of pro.
curing discounts on notes, were also pretty
cxtensive-nll the negotiations being in.
trinsically based on the credit he enjoyed
from his position, and the Bank accommo-
dating him in consideration Of the advant-
age il gained from the deposits which he
made of the Public funds.
The City Bank Of Biddcford, on several
occasions, has discounted the time checks
Of the treasurer, or checks to be held for u
specified period before presentation for pay.
ment, however dated or worded, and has, by
discounts, afforded Peck large facilities in
obtaining the use Of money.
The International Bank of Portland, hes
also discounted the same kind Of spurious
paper.
The Manufacturers and Traders Bank
Of Portland, has discounted private paper
on which Peck was interested, and taken
his official time check, on the Suffolk, as
collateral security.
The State Bank Of Augusta, on one oc-
casion, took Peck's official check on the
Suffolk in payment Of private note, and
then held the check, by agreement, for q
long period, according to Peck's testimony.
Col. Stanley, president Of the bank, stated
that the period was not very long, according
to his recollection, and that the check was
kept as 1t was, 10 obligc Peck, and with
out any compensation whatever.
The State Bank and Augusta Bank, Of
Augusta, und the Market Bank, Of Bangor,
have each, according TO Peck's testimony,
given him indirect compensation for the favor
OF deposits. The Market Bank made him,on
two occasions, small cash present as an
allowance Of interest on the sums deposited
there.
These are all the transactions with banks
which the Committee deem of sufficient
Importance To embody in their Report. The
Inference is quite plain, that the banks, with
out so designing, have materially assisted
in The work of depicting the treasury. The
inflated credit which they gave to Mr.. Peck,
when he was entirely undeseying Of il
from any resources legitimately at his cum.
uland, led him to the giddy heights whence
iall was inevitable. The idea Of direct
seizure of the State funds for the large
specula,ions on which hc entered, does not
seem to have been part OF Pcck's original
calculations, but after he was once launch
ed on the great scheme OF "credit," there
were lapses continually occurring which
enforced the use of the State funds, to ~
void the alternative OF the fatal "protest."
lie had paper discounted in large sums, with
no hope Of the makers responding at ma
turi,y-leaving him to stand alone at the
critical moment, or 90 through the damaging
process of renewal with equally inferior
notes. Weston testifies that The made sweep
of $4,000 at one time, in Bangor, on pa
per mostly Of the character just described.
The witness adds, however, that "that was
lucky day." and Of course is not to bc
taken us a sample. The Committee may
desire to offer law which will eiiectually
prohibit banks from indulging In practices,
which, in this instance, have led TO such
ruinous consequences.
TnEAsuaER.s PAPER DrscouorEp pr
PnivATE PARTIES.
In the course Of tho investigation. numer.
Gus financial transactions between private par
ties and Mr. Peck. as Treasurer, were dis
closed. Many Of these were Of highly OBJ
jectionable character. and deserve the same
exposure and censure bestowed upon tho
hank. for THAR imprcper course. Some of