Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1862-06-02


diana by Mr.. SrovER, from the money article of
that paper of Monday last 1t presents differ
ent face to the transaction from that represented
to us aud which we gave to the public. 1t ap-
pears that $3.50 900 of the over issues have been
returned and cancelled and that the outstanding
irregular bonds will not probably exceed 800,
0OO" 1t is stated that arrangements have been
made to retire all that are afoat. The Herald
says that "the State Agent Governor, Loan
Commissioners and financial advisers of the
State" agreed with Mr.. Slower that if he would
retire SIS 900 or more of the irregular issue"
weekly, that he should not be exposed. In other
words, that this gross and dangerous violation of
a public trust should be winked at by the high
authorities of the State, if Mr. SLOWER returned
to the Agent of State the irregular issues
that upon his fulfilling this condition they
would "keep the fact of the irregular
issue a secret So it appears that in
the estimation of the gentlemen referred to
that Mr.. Showers crime consisted in tie discov
cry, not in the commission of the act and that so
far as they were concerned he could still be re
the world with their certificate as a high-minded
and honorable gentleman. According to this
code of morals and administration of justice by
our high officials, If gentleman removes surrep
titiously pocket-book from another gentlemar's
pocket and uses its contents, the thief is not to be
exposed and is permitted to pass current in the
community gentleman, provided he makes
arrangements to return the money stolen by in
staments at his convenience and fuflls his con
tract
Ii Mr.. Slower retres the irregular issues"
''the State Agent, Governor, Loan Commissioners
and financial advisers of the State of Indiana"
should invite him to public entertainment. and
toast him as model of public and private integ
rity, and eminent financial ability. The New
York Heraid's account of the transaction is a
new development of the morals and financial OPP
erations of the day. We propose that the Hon.
Mr.. Slower, 1.-THE State Agent, Governor, Loan
Commissioners, and financial advisers of the
State of Indiana" should be employed by Mr..
CHASE to manage our public finances. We notice a
bill is to be introduced into Congress this week
to establish a National bank, based upon the
public credit, with the treasury notes for a
basis, and we suggest that the distinguished gen.
tlemen referred to be placed at the head of it,
Mr.. SLOWER could manage the irregular issues"
and the other gentlemen would understand how
to compromise the matter, in case of discovery.
Read what the Herald says:
The event of the week has been the alleged
discovery of an irregular issue of five per cent
bonds OF the State of Indiana. Col r. NJ. Hud-
son, the financial agent of the State, the
staff of General Fremont, states that some
months since his attention was attracted by the
presentation at the agency of a number of bonds
in the name Of party whose interest in the In
diana State debt was, according to the ledger,
less than the amount of the bonds so presented
He was thus led to inquire into the subject, and
the result of his inquiries induced him to seek
conference with his predecessor, Mr. Slower. On
being Intercepted Mr.. Slower admitted to Mr.
Hudson that he had issued, without authority,
number of Indiana per cent. bonds, and that he
had hypOthecated them for loans. Mr.. Slower, as
agent of the State had in his possession books of
bonds. already signed and registered, which only
needed his signature to render them valid Sc
curity. 1t would appear that his over issues were
chiefly made prior to his appointment to the agen-
cy, while he was acting as clerk and attorney OF
/ Mr. Cravens, his predecessor in the State agency
and now member of Congress from Indiana. On
discovering the irregularity Colonel Hudson had
several conferences with the Governor and Loan
| Commissioners of Indiana, and likewise with Mr.
Slower, and with the parties who had lent money
on the irregular bonds-the upshot of which was
that Mr.. Slower agreed. on condition of not being
exposed, to take up $3.50 of the irregular
bonds every week, and more, if he could do so.
At this time Mr.. Slower represented that the
whole amount of the irregular issue was some
| 5000, 900. He designated certain parties here
| bankers and brokers-who would act for him in
redeeming and canceling the irregular bonds. In
reply to inquiries he appears to have stated that
he alone was responsible in the matter, and that
the present holders of the bonds were innocent.
! The State Agent, Governor, Loan Commits
sloners and financial advisers of the State of In
diana agreed to M Stover's terms. They pledg
ed themselves to keep the fact of the irregular
issues a secret When any one sent to the State
| agency to have irregular bonds transferred, the
/ State Agent gave some reason for delay, and
sent the irregular bonds to MIR. Stoyer's bankers
or brokers' who replaced them by good bonds.
/ The irregular certificates then burned in the
presence of Colonel Hudson and Mr.. Slower.
Thus matters went on for some weeks, during
which the amount of irregular bonds presented
/ for transfer or redemption, and actually with
| ,
amounted, not TO 5000, 900, as Mr.. Slower had
stated but to $3.50 900, or Whereabouts. and there
was reason for believing that further amount
was still aloat. At this stage in the proceedings
the secret transpired. At first only few lead
| ing banking houses were in possession of it, and
made haste to call in all the loans they had on
Indiana fves. But on Thursday and Friday of
last week il became generally known, and a panic
in Indiana securities ensued Yesterday all loans
on Indianas were called. We believe they were
all fully met. Mr.. Stovers agents appear to
have wisely concluded that in the embarrassing
position they had no choice but to take up the
loans on the irregular bonds. whether their prin-
cipal was able to respond or not. A leading
Wall street house, which has had intimate con
nectiOns with the State Of Indiana states that the
amount of outstanding irregular bonds will not
probably exceed SlO0.Co0 Colonel Hudson
thinks there may be 5000, 200; and parties who
have had dealings with Slower estimate that less
sum of money than 300 900 will retire all the
bonds still afiOat and that they will be fully re
tired in a few days.
The first idea which the facts will naturally
suggest to every one is that the State of Indiana
practically recognized the irregular issue, and. so
to say, made itself a party to the transaction by
transferring the irregular bonds and granting new
and good ones in the place thereof. When a
banker made loan on the irregular certificates,
and. having sent them to the State Agency for
| transfer, received in exchange new and good
bonds in his name, he had no means OF knowing
that hOcus pOcus transaction had taken place,
by which the irregular bonds had been cancelled
and other certificates substituted by Mr.. Slower
with the connivance Of the State Agents On
the contrary, the transaction was calculated to
lead him to place perfect faith in the irregular
bonds and To dispense with the formality of trans