The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1862-05-26

certain parties here-bankers and br0kers-whC
would act for him in redeeming and cancelling 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 Commissioners, and financial advisers OF the
State of Indiana, agreed to Mr.. StOver's terms.
They pledged themselves to keep the fsct of the
irregular issue secret. When any one seat to the
State agency to have irregular bonds transferred
the State Agent gave some reason for delay, and
sent the irregular bonds to Mr. Stover's bankers
or brokers. who replaced them by good bonds
| The irregular certificates were then burnt in
presence OF Colonel Hudson and Mr.. Slower.
Thus matters worked on for some weeks, during
which the amount Of irregular bonds presented for
transfer or redemption, and actually withdrawn
cancelled by Mr. Stover's agents, amounted, not
to 5000 900, Mr. Slower had stated, but to $780,,
900, or thereabouts and there was reason to be-
lieve that further amount was stu afoat. At
this stage in the proceedings the secret
TRANSFERRED. At first only . few lead
ing banking houses were in possession of
il, and made haste to call in all the
loans they had on Indiana fives. But ON Thursday
and Friday Of last week it became generally
known. and panic in Indiana securities ensued.
Yesterday oil loans on Indianas were called. We
believe they were all fully met. Mr.. Stevers
agents appear to have wisely concluded that in
their embarrassing position they had no choice but
to take up the loans on the irregular bonds,
whether their principal was able correspond or no.
leading Wall street house, which has had int
mate connections with the State of Indiana, states
that the amount of outstanding irregular bonds
will not probably exceed 100000. Colonel Hud
thinks that there may be 5000, 00O; and parties
who have had dealings with Slower estimate
that less sum Of money than $500 ,000'wll retire
all the bonds still afoat, and that they will be
fully retired in a. few days.
The first idea which the facts will naturally
suggest to every one ia that the State Of Indiana
practically rec ognzsd the irregular issue, and, so
to say, made itself party to the transaction by
transferring the irregular bonds, and granting new
and good ones in the place thereof When
banker made q 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 pocns 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 formaity Of transfer
when next he was asked To lend money on the
same security. We are bound to say that the
street takes uniayorable view OF the proceed
ings Of the State authorities and their advisers in
this matter. II is said that when these Loan Com
missioners, few months ago. thought Of prose
cutting the author OF the fraud, thew were
informed by the District Attorney here, and
also BY the Attorney General Of Indiana. that it
very doubtful if they had any case. Their de-
fence is that they satisfied that the bankers
and brokers whom Mr.. Slower had contriyed to III
yo,vc in his transactions had capital and reputa-
ton enough at stake to redeem the whole irregular
issue, If no expose was made. II may likewise he
surmised that they were keen!y alive TO the inn
policy Of casting discrcdit upon indiana securities
At a time when the State was in the market for
war loan. However this may be, il the Indiana
State agents concluded that it was best to make
terms with Mr. Slower, and coerce him and every
body who had been unfortunate enough to loan
money on the bonds TO retire them, they should
have aad the sagacity and the skill to prevent the
secret TRANSPORTING.