The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1861-03-21

TREASURER SoFsINGER AND THE NAY. BRIGH:
AND DRAKE BILLS OF EXCHANGE.

the State consisted of certain protested bii'
o' exchange, TO which Allen May, jaime
r p. Drake, and Michael G. Bright were PAL
ties
We will endeavor within as narrow
compa as we can, 10 state the transaction
" hIch led To the execution Of the paper Il
question, and our action 10 regard thereto
When Mr.. Nufsiuger entered upon TN
dcties Of Treasurer, he received from hi
predecessor. As funds belonging to the State
two certificates OF depnsite. One Of then
was issued by the Bank of Rensselaer,, pay
able at sight III the sum Of three Thousand
one hundred dollars. (S3 lO0) TIE othc
was upon the Br .nch al Lafayette Of thu
State of Indiana. 1t had been issued short
ly before Inc expiration Of Mr. Ne~land' :.
term Of flee. and was payab in six months
after date, in the sum OF nineteen thousand
and five dollars and tour cents. Sl9 005O4
| Upon the suspension OF specie pay me nts
by the Bank Of Rensselaer,, the deposits
were transferred by Mr.. Nofsinger to the
Farmers and Mechanics Bank at lndianap
oils. The latter Institution was at that time
In good repute. had uniformly redeemed its
circulation, aud was regarded as a secure
depository.
The certificate Of the Branch Bank has
been originally issued to Col May, and on
It's falling due. Mr. Noisinger informed the
officers Of the bank that he desired 10 have
1t paid III exchange on New York This
was declined except as 10 a part OF the
amount, and there is reason to believe that
they conceived that the bank had valid set
OIL Tor the remainder, growing out OF An
Indebtedness contracted by Col. May, sub
seqently to he date Of the certificate.
Col May furnished. in lieu of the certifi-
cate, exchange on New York, aud it was the
intention of Mr.. Notsinger to apply such
exchange in the purchase OF b ,nds for the
Sinking Fund. Upon consultation with
Gov. Wright. and the other State officers.
it was deemed inexpedient to make such an
investment, in view of the exhausted con
dition of The Treasury and the large amounts
that had been SO applied by Mr.. Newland.
The united opinion Of the officers OF State
was in favor of the application of the pro-
ceeds Of such exchange towards the lqul-
dation of the interest Of the public debt.
falling due in January. 1856.
At that time. the funds in the Treasury
consisted OF notes issued by our own banks
and those of other States. They had been
paid in by the respec i've county Tressurers.
who had received them in the collection OF
taxes.@ Such paper had formed the largest
element of our circulating medium. There
was a growing distrust OF the stability OF
many Of those banks and Of their ability to
redeem their circulation No institution OF
undoubted resources and high credit would
receive on general deposit. such doubtful
and depreciating currency. With it. ex-
change upon New York could only be pur-
chased at an exhorbitant premium. and re-
tanning it in the Treasury seemed likely to
involve a heavy loss TO the State. AS the
proceeds Of the exchange were not needed
until January. 1856. MIR. Noisinger would
have been compelled to deposit them in
New York until that date.
At this time. Mr.. May proposed to sell
Mr. Notsinger bills upon New York. matur-
ing in December. 1855. The proposition
was accepted The bills were delivered.
bearing date some time in september. 1880.
The consideration therefor was the bill of
exchange above referred to- the deposit in
the Farmers and Nee hanics' Bank, and
currency The latter was taken at It's par
value aud the bills were purchased On ad
vantayeous terms TO tie Treasury. A few
days before they fell due. Col. May called
upon Dr. Nofsinger and informed him that
from the sudden fall of State stocks and
produce, in both of winch he was largely
Interested, his credit was utterly Frustrated
at home and at New York, and therefore it
was out Of his power TO pay those bills At
maturity He stated further. that he had
placed his property in the hands of Drake
and Bright To pay those bills and other
debts, for which they were liable, as his
sureties He appealed to him. IN view Of
these facts to renew them. as we'll upon his
own account, as that of his endorsers, and
urged, as reason therefor, that he had q
thousand head OF cattle. which he would
nut in condition for the June mar ket of the
following year, and from the proceeds OF
the sale of the same meet the renewal bills
in time for the payment of the semi annual
in,eres, in July, 1856. His assurances had
been as positive when the original bills were
made. that they should be met but Nofslng.
er knowing him to have the cattle. and
again contiiing in his promises, and bellev-
ing that they could not sooner be collected
/ by suit, consented. In the renewal, the
| old bills were consolidated into two, aud the
interest accrued added.
The new bills were dated the Gath anc
25th Of December, 1855. and were drawr
| by NJ G Brigh. and J. p Drake. to the
order OF Allen May. and by him accepted
PAYABLE in six months AT the office oil Corn
ing x Co New York City.
One was for twenty thousand dollars
and the other for (S27.l95 45) twenty sew
en- thousand one hundred and nienety -tiv'
dollars and forty hve cents. Notwithsiand
ing the reiterated assurances and declara
tions of May. the renewal bills were pro
tested tor non payment. Mr.. Nofsinger say
that upon the occurrence in the first Cour
OF Jurisdiction. But his resolution agar
yielded the sale of his cattle had not beel
consummsted, yet a contract for sale has
been made aud WAS then subsistlny, AM
would be carried into effect in time for th'
=, January interest of 1857, on The State debt
The argument prevailed and Nofsinger. up
on the faith of fresh promise, resorted T.
= no measure TO enforce the payment OF them
After the repeated defslcstions of May,
will excite no surprise that the bills wer
: . no, met. At the time stipulated. When o
where the cattle were sold is Of but littl
consequence to this inquiry. The avail
only paid the interest on the bills up TO th