Indiana State sentinel. (Indianapolis, Ind.) 1861-1865, 1863-04-13

Auditor were void in these loan negotiations, but
this did not go 10 the declaration that they should
not be paid. The loan Of $l65 600 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; yet these men propose to Dor
row money to pay the interest cn these stocks in
their own hands" page ia
Similar doubts as to the legality Of the loan
were expressed by other members. Mr.. James
E Blythe, page l66; Mr.. James F. Harvey, page
16l: Mr.. Hamilton Smith. pages 203. 204.
The Legislature Of 1859 was composed of the
same persons as that of 1853, the session of 1858
being a special. while that of 1859 was a regular
session.
administration of Gov. Willard, two measures
were introduced into the Legislature one an act
entitled "An act to provide a treasury system for
the State of Indiana, for the manner of receiv-
ing. holding and disbursing the public moneys of
the State. and for the safe keeping of public
moneys the second an act entitled "An act to
provide for the safe keeping of the bonds, mort
cages and other securities entrusted 20 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 was passed again and became a law not
outstanding the Governors objections. Il G.. &
II 645,) the other failed for want of a qorum.
Section eight of the act to provide a Treasury
system declares that 1.-THE Auditor Of State shall
at no time draw a warrant upon the Treasurer of
State unless there be money in the treasury be-
longing to the fund upon which The same is
drawn to pay the same, aud in conformity TO APP
preparations made by law, and on money actual
" in.the Treasury, subject to the payment of the
same, Il 6. & II. 647)
Section seven of the same act provides that,
"The Treasurer of State is expressly prohibited
from paying any money out of, or, transferring
any money from the Treasury of State except
upon the warrant of the Auditor of State"
Il g. & II. 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.
2 g and H. page 456
NV attention has been called to the sixteenth
section of the act creating a Treasury system.
II is as follows:
"Atsome convenient period. prior to the falling
due ofthe interest on the foreign debt Of the State.
payable at New York. the Treasurer shall, with
out making any discrimination. draw on the bank
notes in the Treasury an amount of specie sufi-
cient to paw said interest. which he shall trans
NIT to New York by express, or otherwise, as
LAaF ~ 1NOhAN1 ottY - chF oahR -
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 day of payment of said inter-
est. and without any premium of exchange, and
giving ample security to the Treasurer for the
prompt payment 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 he money should be 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 a necessary or pertinent part
of it; it is nothing more than it processes to be,
an act providing the general system for receiv-
ing, holding and discussing the public moneys Of
the State, to which a 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 Legisla-
ture that enacted it, and after it had been passed,
passed an appropriation bill. appropriating $500.
600 for interest for the year 1859, (Acts 1859.
1879 also, 1890. 900 for interest for 1860, (Acts
1859. 14,) and that the Legislature of 1861 made
similar appropriations for the years 1861 and
1862. Acts 1861, pages 6 and Z
Section four of an act approved March 9th,
1861, (Acts ls6l. page loS.) is a substantial re-
enactment of the Sd section of the act, approved
June 18th. 1852, q G.. & H 503,D and what /
have said of the latter, applies with equal force
to the former.
At the time Gov. Willard and the administra-
tive officers of the State paid the interest on the
State DEBT, without an appropriation, there exist
cd no statute f~orbiding such payment, and no
embezzlement bill imposing heavy penalties for
paying money in such cases. without legal au-
thority. and believing. rs i do. that there is no
authority for its payment at this time, it is for
you to consider whether a zeal for the public in
terests will he adequate compensation for expos
ing yourself to the penalties prescribed in that
law. Respectfully, &c,
OSCAR Ii. HoRD,
Attorney General.