The Lansing state Republican. [volume] (Lansing, Mich.) 1855-1874, 1861-03-06
CANAL LOAN.

CANAL LcAS
The committee nave al given some attention
80 the sale of canal bonds, So called, and the
transaction with Hazelton & Co., which resulted
in the deposit wiki them, hy the late Treasurer,
of $50, 900 This sale Of bonds seems 10 have
been conducted with but little regard to the prin
cipies which govern such traasactio.3 in the
money market. The bonds we're advertised, and
bids therefor rece we'd in April, and the loan was
.heu ava ded 10 ilazetnn 4 CO., "a the highest
bidders. |. does moi seem 10 have been contCm-
plated thai Tie transaction should be then closed
TIE bonds were yet 10 be prepared, and they
were rot in fact 10 be delivered uut; the july
following. The variabeAcss Of the money mar
ket i such that ii is rare that responsible par
ty will bid for such loan to-day when the trans
action Is not to be closed for two months Ia
the meantime, the value IN the market OF
such securities, changes a'ta all the changes
which Affect the price OF money. To MAKE such
Il transaction, therefore, 50 long beforehand, and
leave it unclosed until July, when the money
seems to have been wanted 10 pay the coupon.
upon the State bonds, was to run imminent risk
that the transaction would tall through and the
State suffer dishoHor. unless, what is haFdly sup
posabe, party oi unquestionabl,. responsibility
could be found 10 enter into hazardous q con
tract A to agree upon present pg;ce for bonds
to be delivered a long tins in the future. What
was to have been appgchended, came actually 20
pass \ change in the market value Cf money
IA pretended change in the value OF the bonds
on account OF questions as TO the night oi the
State 10 issue the same, gave Hazleton i - an
excuse to decline fulfilling the contract The
late Treasurer seems 10 have been utterly unfit
to manage such transaction, and to have beea
surrounded by friends who were as unfit a. him
self-as incompetent certainly, if not more to
blame than himself.
The late State Treasurer Holmes, Mckinnes's :
predecessor, had sold 20 this same Hazleton &
Co.. S266,00D of the State bonds during the
tim. oi his tressurership. The transaction
was some months before Holmes retired from Of.
fee. The price agreed TO be paid ioF these bonds
by Hazleton Il Co, had not been fully paid when
both sir. Holmes and " blney Jones, the Audi
tor General a that time, weat cut OF office. The
whole amount OF tae premiums being b-tween
$4,000 and =, ,0G0 agreed 10 be paid, had never
been realized. Whitney Jones had his at;entiOn
called TO this fact soon after his term of office
expired. had examined the auditors books, and
had ascertained that the money had never been
reported by the treasurer as pad. He scccnp2-
MED Mckinney to New YORK rs bis adviser aad
friend. Ir. Holmes was there also Both Con
suited together, and il vas by their advise tLat
Mckinney seems to nave been guided. Holme :
had been one OF the original bidders for the loan
as a competitor of Hazellon K Co, had b.en in
New York when the loan wss awarded to them.
He had never then mentioned to the Governor
% Treasurer tbat Hazle:on i Co, had failed to
pay the full price OF she first Loan sold them -
/ Neither he nor Jones, in July, when Haze,on &
Co. decline. tn take the bonds unless McKinney