The Richmond palladium. [volume] (Richmond, Ind.) 1855-1875, 1863-01-16

though l believe they were executed aud
issued at a later date. / am informed By
Col. Hudson that the forged certificates
were ali made payable to Samuel HalleIt
except about $4,000 made payable to a
person by the name Of Deschaux. He
further Informs me that tie whole amount
issued, SO far as he has been able to discov-
er, Is 80, 53S 900, of which amount ST.
295, 900 have been retired and destroyed
Col. Hudson states that he discovered the
existence Of this spurious stock in few
weeks after be came Snto office, and imme
dlately charged the matter upon Mr.. SO
YER, who confessed it all, but said there was
only about $500. 0eo out, and that il the
matter were kept secret, he, aud those oper
aiing with him, would take up and destroy
them. SO that nobody should lose any hing
by them. Col. HUDSON further says, not
knowing what might be the liability of the
State upon these certificates, he deemed it
highly important Tor her interests that they
should be gotten off the market and de-
stroyed, aud for that purpose agreed with
them, for the time, to communicate the
matter to nobody. without. however. giving
them any assurance that they should not
be ultimately exposed and prosecuted.
The knowledge OF this forgery was first
communicated to me about the latter part of
January last, by Messrs. J ames II. Ray aud
Jesse j. Brown, two Of the Loan Commits
sioners, appointed By the State to negotiate
her War Loan.
They had learned it from Mr.. Lanier. OF
the firm of Winslow, Lanier & Co., who
had discovered i. in some way about the
first of December previous. l Immediately
repaired 10 New York, and in company with
the Hon. John F. Usher, then the attorney
General Of Indiana and Jesse J. Brown,
Esq, endeavored TO investigate the affair.
In the opinion and confidence entertained
by Col Hudson, and some other gentleme n
who had been consulted, that Mr.. Slower
and those acting with him, would retire the
fraudulent stocks | did not share, and was
not for that or any other reason in favor of
delaying their exposure and prosecution a
single hour.
Accordingly, | proceeded at once to place
all the facts of which had any knowledge,
in the possession Of Mr.. Hall, the District
Attorney prosecuting the pleas of the State.
for the city OF New York.
The crime had been committed in New
Yogh. and to The laws and authorities of that
State It's punishment belonged.
Mr.. Hal after delib-ration and such in
vestigation as he could make, determined
that an exposure and prosecution of the
parties at that time would be highly mex
pedient. and informed me that he took
the responsibility of deferring any public
disclosure and prosecution until such time
az in bis jud gment it was proper to make
them.
Matters thus stood from February until
about tie 21th day OF May, when learning
that the affair had become public in New
York. aud believing that no reason could
exist for further delay in the prosecution.
caused the arrest Of Mr.. Slower, who was
then in tits State and sent him TO New
York. On his arrest he freely consented to
go. and waived all process of formal au
thority. The Hon. John +. Kibbey, then
acting Attorney General, by my direction
proceeded to New York, and, under the
instructions Of Mr.. Hall, filed com plant
before the grand jury, in the name of the
state Of Indiana. and demanded an iDves
LEGATION.
The grand jury returned bills Of indict
ment against Slower and Hallett. At the
September term Of the Court in which the
bills were pending, the Court quashed the
Indictments against Hallett on the ground
that it was no crime against the laws of
New y DIRK to forge certificates or obligations
purporling on their face to be executed by
the Stse OF Indiana. From this decision
Mr.. Hall prosecuted writ of error to the
Court of Appeals, but no decision thereon
las been bad.
The indictments against Slower arc still
pending. W hen this forgery was first made
public, Indiana securities were suddenly
depressed in the market from ten to twenty
per cent, but soon after rallied to nearly or
quite their former rates.
70 avoid all embai rassment in the future,
which might arise from the existence OF the
forged certificates, l recommend that the
Auditor OF State be authorized to procure a
new plate, differing in form and appearance
from the old. upon which new certificates
shall be printed, and that the holders of all
genuine stocks shall be requested TO sur
render them and receive instead certificates
of the new impression:
JULY INTEREST ON STOCKS.
Many oil the Western States, among them
Ohio aud Illinois, Were making provision in
New lork 10 pay the interest on their debts
in coin, i'll order to maintain the credit of
their stock.
As the credi, of Indiana had received a
shock by the development of forgeries of
Htr STOCKS, anu is Tue VI many
of the Free Banks of Indiana was based
upon Indiana stocks. it seemed to me espe-
cially important that she should take the
same course. in order to secure her creditors
and the public that her ability and diposi-
ton to pay her debts were in no wise dis
turbad or impaired by this assault upon her
credit. Accordingly, l Instructed Mr.. Hsr-
vey, Treasurer of State, to provide, if he
cnuln upon rsasnnahla farms tho cnin With
which 10 pay the interest upon our stocks
This he did. upon the terms aud in the man
ner stated ia his report The announce
ment of the purpose OF the State to pay her
interest in coin had an immediate and salu
tary effect in restoring confidence and bring
ing back the value OF our stocks to its for
iEer standard.
AT the time directed the paymen; of the
July interest in coin the premium on coin
was very small, bat has since Increased So
greatly As to forbid the like arrangement