The Evansville daily journal. [volume] (Evansville, Ia. [i.e. Ind.]) 1848-1862, 1860-09-29
State Affairs.

In July, 1859, there was money enough
in the State Treasury, according to the re-
port of the Auditor of State, to pay the
July instalment of interest on the Stare
debt, but the State officers thought they
might want that money for another purpose,
and as the Constitution forbids the borrow
ing of money except for the purpose of pay
ing interest, they concluded to borrow
money to pay interest on State debit These
officers didn't care fig for the provision in
the Constitution, and would have borrowed
Just the same as if it had not been there, if
they could. They know that no one would
trust them for any large sum with this we'll
known prohibition in the Constitution
The exigencies of the Democratic party
were urgent probably sundry fat contracts,
or the speculations of Democratic anti~Re-
publican leaders, would have been spoiled
withou: the money. The money was bor-
rowed-SI65, 900. Was the interest on the
State debt paid with the money borrowed
Not a bit of it. Contrary to the express
requirement of the law, the Sl65, 900 boz
rowed was never entered on the books OF
the Treasury Department. The Treasurer,
! however, took care to enter to his credit all
the payments made on account of interest
on public debt in July, 1859. Possibly
that loan of Sl65,00O never would have
been charged to the Treasurer if the Legis-
lature that winter hadn't appointed com
mittee of investigation.
The State has redeemed and placed to the
credit of the State Debt Sinking Fund
stocks to the amount of $39l, $40 90; the
annual interest on these stocks amounts to
I Sl3, 545 Is. The certificates of debt were
not Cancelled, but continue to draw inter
est, which, by law, is directed to be invest
ed in State stocks. The Auditor is reQuir
ed by the law to state in his annual report
" the amount of interest received on the
stocks redeemed and how the sum is in
vested" No Auditor of State has ever
complied with the lw, or made any report
of the interest so received. The Auditors
have received the interest, but no account
has been kept in the books in the Auditors
Office. The committee of the House had to
refer to the reports of the Agent of State to
ascertain the amount and cost of the certi-
Gates of stocks purchased by the Sinking
Fund In this way they traced into the
hands OF Mr.. Auditor Dodd $29,9l7 81
I 3,247 81 of which was in worthless certi-
fcates of the Bank of the Capitol and
Judgment for $7,325 90 against Mr.. Tai
I bot But this is not all. The redeemed
bonds have been re-issued. In November,
/ 1858. the Committee of Ways and Means
I of the House made an arrangement with
the managers of the State Sinking Fund to
borrow money sufficient TO pay the inter-
est due in January. This arrangement was
repudiated by the State officers by a refusal
to accept the money. Subsequently, 1t was
. discovered that the State officers had taken
the stock redeemed by the State Debt Sink
ing Fund, and hypotheeated them in New
York, thus obtaining the money to pay the
January interest Was the State stock re-
deemed and returned to the Auditors office?
/ The taxpayers will find that out if n Re-
publican Legislature appoints another COM
mittee TO investigate. Our individual opin,
ion is that the stock has been sold long ago
! in New York, and that it will have to be
redeemed a second time by the taxpayers.
The tax payers lost about $40. 900 by the
reissue of Treasury notes. We stated the
loss at about half this sum in e former ar
ticle, after they had been once redeemed.
Who committed this fraud it has been inn
possible to find out, but it was during the
much Wanted (by the anti-Republican can
didate, Hendricks, administration of the
Democratic party.
The Bresln and Gibson frauds startled
the people of Ohio The reissue of canal
scrip in Illinois opened the eyes of the tax
PAYERS of that State. The land frauds in
Wisconsin revolutionized that State-made
it one of the most reliable Republican States
In 1852 the Auditor of State reported to
the Legislature that the reports Of the agent
Of State on file in his office, did net agree
s0ith the books Of the Agency.
In 1852 the Agent, J. M.-Lord, respect
fully, but earnestly, called the attention of
the Legislature to the subject Of placing a
guard around the agency, at New York, SO
as to protect the State against the evil and
calamitous results of an over-issue of State
stock.
The editor of this paper as respectfully
and earnestly calls the attention of the
taxpayers to the condition Of their State
indebtedness-H Madison Courier.