Daily State sentinel. [volume] (Indianapolis, Ind.) 1861-1865, 1863-04-08

the legislature by the Constitution
The Legislature OF I-J-. acting upon the same
idea. made provision for the plymen. Of the in.
tere-t due on the frat DAY OF January, -59. aud
specified the sources from which the money should
be derived Acts 1853. p 49,
call your attention. - the individual opinions
of some of the members Of that Legislature on
the question Of the legality Of the action Of the
State officers
On the i7ih Of December. 1883, Mr. Charles
l. Murray urged a number OF objections 20 House
bali No. 95--4 bill 10 crate a board Of Sinking
Fund Commssioners-among Others the follow
ing: That there i no more restriction Of this
Board TO free use OF the public funds than TO
the Treasurer OF State. against whose practices
such universal complaints are made" Legs
iative Sentinel TOR I-5s p. I5D.l
December 10Th, Mr John X. Crayens submit
tep a report from a select committee. to which
referred Senate bill lo1 authorizing the
Governor, Treasurer. and Auditor OF State to
borrow from the Sinking Fund Commissioners TO
pay the interest for January, 1883 and recon
meuded its passage for number oil reasons,
among others the following:
Il The existence Of doubts as To- the power OF
the present executive officers of State 10 negotl-
loan for the purposes contemplated IN the
Constitution Legislative Sentinel for ISIS, p
l63
December 81, Mr. David c. Branham ex
pressed himself thus: This bill was of para
mount importance. Ii was to provide for the de-
felt in the Treasury. There existing law
by which this could be done without violating at
least. the spirit OF the Constitution He was un-
willing to 90 home without such provision OF
law" Legislative Sentinel, p. l13
Mr. Branham concluded his remarks as foI
lows; "He insisted at all hazards TO pay the inter-
est on the public debt, to preserve the public
1. l.. Ftf.. l..va md
Auditor were void in these loan negotiations, but
th. did not 90 to the declaration that they should
not be paid The loan of Sl65 900 of last July
was not necessary 10 meet the interest on the
public debt The State of Indiana held 1891 900
of her own stocks; vet these men propose to Dor
row money TO pay the interest on these stocks in
their hands" Page Ia
Similar doubts TO the legality OF the loan
were expressed bv other members Mr.. James
Blythe. page l66: Mr. james + Harvey, page
ISL; Mr Hamilton Smith. pages 203. 204.
The Legislature of 1859 composed Of the
same persons as that of 1858. the session of 1853
being a special while that of 1889 was a regular
session.
To avoid the irregularities charged against.the
administration of Gov Willard, two me sures
were introduced into the Legislature one act
entitled "An act to provide a treasury system Tor
the State Of Indiana, for the manner OF recelv-
ing holding and disbursing the public moneys OF
the State. and for the safe keeping of public
moneys the second act entitled AN act to
provide for the safe keeping of the bonds. mort
cages and other securities entrusted to the care
of certain officers herein mentioned. defining GER
tain felonies and misdemeanors, and providing
punishment therefor. and providing certain evil
dence on the part of the State" Both were
passed, and both were vetoed by Gov. Willard,
the first wa passed again and became a law not
wthStanding the Governors objections. Il G. 4
II 6i5,) the other failed for want Of qorum.
Section eight OF the act To provide Treasury
system declares that ''ihe Auditor OF State shall
/ at time draw warrant upon he Treasurer OF
State unless there be money in the treasury be-
longing TO the fund upon which the same is
drawn 10 ply the same. and in conformity to APP
Preparations made 10y law, and on money actual
ly in the Treasury subject to the payment OF the
same Il g & Fl. 6i7)
Section seven of the same act provides that
1.-THE Treasurer of State is expressly prohibited
from aging any money out of, or, transferring
any money from the Treasury of State except
upon the warrant of the Auditor of State
Il G. & 647
The second entitled act inflicted heavy penal
ties upon officers of State for violating the duties
prescribed BY law and was substantially re
enacted by the Legislature of 1861. being the
act popularity known as the emhezzlement bill
p q and II. page 456
Nv attention has been called to the sixteenth
section of the act creating n Treasury system.
1t is as follows:
"At some convenient period. prior to the falling
due cflhe interest on the foreign debt of the State
PAYABLE at New York. the Treasurer shall. with
out making anv discrimination. draw on the bank
notes in the Treasury an amount of specie suii-
cient 20 pay said interest which he shall trans
nit New York by express otherwise. as
may be deemed most safe; but any bank or
banks on whose notes specie is thus demanded
may redeem such notes to the extent of such
dividends. by draft on New York, PAYABLE fifteen
days preceding the dav of payment of said inter
est. and without any premium of exchange, and
giving ample security to the Treasurer for the
prompt pa yment thereof"
The interest on the State debt was payable in
New York. and at the time this act was passed
there existed no statute providing the manner in
which the money should he transmitted TO that
city, and making it the duty of any particular
person to perform that service: and this section
does nothing more than provide the instrument
atty by which the interest shall be transmitted TO
the place of payment
The bill itself is not an appropriation bill, nor
is an appropriation necessary or pertinent part
of il; il is nothing more than it processes to be
an act providing the general system for recciv-
ing, holding and dsbursing the public moneys of
the State. to which standing appropriation for
a specific purpose would be inappropriate
Bearing upon the effect Of this section. | call
your attention to the fact, that the same Lcgisa-
ture that enacted it. and after il had been passed
passed appropriation bill, appropriating $500
GOO for interest for the year 1859, Acts 1889
49, also. $500 900 for interest for 1860. Acts
1883. ii ) and that the Legislature of lS6l made
similar appropriations for the years 1861 and
1862. Acts 1851, pages and :
Section four of an act approved March 9th
1861. Acts 1861. page los Is a substantial re
enactment OF the Sd section of the act approved
June 18th. 1852, Il G. & II 503.) and what
have said of the latter. applies with equal force
TO the former.
At the time Gov. Willard and the admnstra
tive officers of the State paid the interest on the
State debt, without an appropriation, there exist
Oh no statute forbiding such payment, and no
embezzlement bill imposing heavy penalties for
paving money in such cases. without legal au.
thority. and believing. as | do that there is no
authority for its payment at this time, il is for
You 10 consider whether zeal for the public in
terests will be adequate compensation for expos
ing Yourself to the penalties prescribed in that
law. Respectfully, &c
OSCAR r Horn,
Attorney General.