The Smoky Hill and Republican union. [volume] (Junction City, Kan.) 1861-1864, 1862-12-06

Our State Treasury is now without
dollars in its Golfers, and some legislation
will be necessary before a dollar can be
raised to defray the expenses Of the State
Government. Our State finances would
not have been in this situation had our
State officers performed their duty honestly.
On the 1st Of May, 1861, our Legislature
passed an act authorizing A. NJ. Clark and
J. C. Stone to negotiate sl50.0O0 of the
bonds of the State to defray the current
expenses. These gentlemen attempted to
sell the bonds, but did not succeed, and on
the Sd Of June, 1861, a supplementary act
was passed, by which the Governor, Audi
tor, and Secretary of State "ere authorized
to negotiate 100000 of the bonds provided
for in the act above referred to for the same
purpose. These bonds were to run fifteen
years at seven per cent. interest, payable
semi-annually in the city Of New York.
On the 7tb of May, 1861, another act
was passed authorizing the Treasurer of the
State to borrow the sum of s20, 900 to repei
invasion. etc., and be was further authorized
to prepare bonds to the full amount of such
loan. These bonds were to draw ten per
cent interest, the principal payable in two
years from the time the loan should be
effected. Instead of issuing only s20, 900
of the war bonds. $4,000 were issued, and
S3l 900 sold. The amount was sold at
uinety.6ve cents on the dollar, and forty
cents on the dollar only returned to the
treasury. Of the seven per cent. bonds
$500 were sold to the Secretary Of the
Interior at eighty five cents on the dollar,
and S56, 200 paid for, and only sixty cents
on the dollar of these bonds SO disposed of
was returned into the treasury. By an act
Of the Legislature, the payment Of S31, 900
was stopped in the hands of the Secretary
Of the Interior at Washington, and is ready
to be paid over at eighty-6ve cents on the
dollar as soon as the Legislature shall ap-
point an agent to receive the amount. The
contract with the Secretary of the Interior
was to deliver to him sl5O. 900 of the seven
per cent. bonds, and only ss7, 200 has been
delivered on the agreement, together with
some eight or ten thousand that we're put
in BY individuals, who had bonded their
scrip, which leaves some $4,000 in bonds
yet to be delivered to fulfil the contract on
the part Of the State.
BY a calculation, it will be seen that the
agents who negotiated these bonds made
speculation of $4,000, which the State
lost. Not content With defrauding the
State ont Of the large per cent deducted
from the amount the bonds sold for, the
agents actually cut the coupons from them
before they were negotiated and turned
into the Treasury of the State as 80 much
money. Had the agents ~ho negotiated
these bonds dealt fairly by the State, there
would now b on hand and belonging to the
State, including tie bonds not delivered.
the sum Of sl2S, GOO. The bonds sufficient
to make mp the tl50,000 negotiated with
the Secretary Of the Interior viii have to be
Issued as soon ~ the Legislature meets.
The contract vas . legal one, aud :he |
State must ful6ll it on its part. If its |
sgsets have cheated the State, that i . !
matter between the State and its SCENTS.