Daily Ohio statesman. [volume] (Columbus, Ohio) 1855-1870, 1861-03-08

0pN|m0nn nH n - n m Ia d
snd fcs 4,
true value IN money nsssed Aprif 81 IsS9 y n. y
nance Committce' " 8NTS-
" II n No All Aas ty1s1rEhss,
appropriations Of the sinking Fupd for tbe veas
1861.
S. B. No. 257; To- amend section one Of an
act entitled ian act fixing the salaries of certain
State offieers.,' passed Nav /. 1870 M
s. r. M, 256 ITO authorize citie "a of the sao!
ond class To fund their floating debts. Municinal
Corporations. ...-i'E'' s.
S.B. No. 26f; to proyide for the ccilection Of
certain taxes therein specified ~ =
s. b. No. 259-To amend section six of an
act entitled can act to exempt )the homesteads
Of families from forced sale on execution to
pay ,debts, passed March 90, 1850 Judiciary.
81 B. mol 263-Regulating the, presentation
and payment of claims against the State
Judiciary. s4 Oh s.Iv1, 81, .gqC69 FsT Il !.
s. B. mo. 264--To amend the first ard third
sections of"an act to provide for the sale or
lease OF estates tail in, certain, cases. passed
April 4, 1859. Judiciary. cod 1ss !. s,s5,5gEi
8. B. No. 265-To amend an act entitled
Gan act to regulate fire insurance companies not
incorporated by the State OF Ohio" J" passed April
8, 1856. laiari7eqs5 yTaT'
S. B. No. 262-Making, appropriations, for
purposes therein named. NJ n ~ n & ~ 80 d
All the above, excepting those otherwise des,
ignated, were referred to the Committee Of the
Wbole,O0 g4TrNfgq
1rTgOJ JTY THIRD READINGS.
S, b. No. as; By Mr.. MONROE.-Tor relieve
the bill holders of the Seneca County Bank.
Mr.. MONROE said the bill isimply provides
that the STATE .Treasurer shall take these notes
In payment of dues TO the State for one wear
from the 18th Nov. 1861.
Mr.. FISHER contended for the passage of the
bill. The State had converted the securities of
the bank 20 its own uses, and had endorsed the
notes after the over issue had been discovered,
by receiving them for taxes and circulating
them among township Treasurers. The State
was trustee for the people ID this matter, and
became the guarantor OF those notes which. gave
them credit and circulation. Iftheir credit was
affected by this act Of q State officer, the State
became responsible for the acts Of her officer. -
Her faith was pledged for, the redemption of
those notes, and her subsequent acts after this
discovery Of fraud made her still further res :
ponsible in the premises. 1t is rot tue that
most of this money is held by brokers. The
greater portion is held In the rural school dis.
tricts, where 1t was sent in packages from the
| State Treasurer's office for ds0ioution, after
which il was repudiated. XVI ''sI NJ, 'l, ,,
Mr.. COX said he favored the bill, but, If be
understood the Senator from Marion, for differ
ent reasons from those which Influenced that
Senator. His own reasons were two: e.l l.
First, that as he understood the facts after
the amount of public stocks which the treasury
hooks showed to be in the hands of the Treas.
urer as eecurity for tho Seneca County Banl:
notes, had been fully and in good faith used to
redeem, those notes, It was discovered that by a
fraudulent collusion between Breslin or Gibson
or both, with the bank, an over issue of some
fiftv thousand dollars of the notes had been
made, Under these circumstauces the State
atood in the position of trustee or assignee
who Maid eome claims In full, where the fund
turned ont 20 be insufficient To nav ali in full
and il this case the State al trustee would al
least bo bonnd IN nav N the note haldera Inc
oyo mo- vote aividend which the trust fund wonld
have maid nnon the whole If distributed In nil.
| sacond. Tie certificate of the State officers on
the face az The hank note. that IL Ia seoured by
nledge of public- stocks deposited with the
Tressurer al State. r. ibe puarantee upon which
the hin holder relies. and AZ matter Of eouity
oood faith and sound State policy. the lStato
should make GOOD the guarantee, foriif the se
curitv IA NOT In the Treasury, IL must be that Il
ia missing bythe faand of these former State
officers and the State ought to keen innocent ner
sons harmless from loss by such official fraud :.
Mr.. KEY DISPUTED the assertions of Mr.
Fisber. and declared his declarations copcernIpp
the State Treasurer were not in accordance with
the facta. The present Treasurer had made
extraordipary exertions in the premises, and aid
ali in his power to protect both the State and
the note holders. Me-. X. however, was oppos
ed to the bill, holding that the State is not res
ponsible for the redemption Of the notes.
Mr.. Gu MMINS looked upon this as uues-
tion whether the State is bound in eauity TO
redeem these notes. He was opposed 70 the
State shielding herself behind for soyereieuty
Would che be liablein a court of equity II
so, she should redeem these notes.2 Tho State
Treasurer is the trustee for the bank, as well as
securities deposited with him. Hegiyes them
no assurance, but his bond to the State, that
such securities will be burned according to law.
If fraud Is committed, the State is responsible.
If the note holders credit the bill holders upon
the guarantee of the State, they should be pro-
tected by the State. The manner in which
these notes we're circulated shows that the peo-
| pie regarded the faith Of the State as pledged
to them by the provisions of the Law. Rein
dorsement Of these notes by the State, in the
payment Of them by tho State to county treaaur.
ers, gave the people confidence in them, and 1t
is but justice that the State should redeem its
pledges. q
Mr.. MONROE thought the facts in the case
were all that were necessary in the premises,
and he stated them as follows:A ~S1 %'a
| In 1845 the State passed the Independent
banking law. The13th section required Banks
TO deposit certain guarantees. Section 81 re-
quires the State Tfeasurert to issue notes upon
the basis Of these securities. The State Treas.
urer is forbidden to furnish such notes, until
dollar for dollar Of such securities are deposit-