The Cleveland leader. [volume] (Cleveland [Ohio]) 1865-1865, 1865-09-08
TIE OHIO STATE TREASURY.
Official ExaminAfiOn-.MOw the Funds
Are Managed.

xam1ne OF the 0bHte treasury,
las, together with william Henry Smith,
Secretary of State, who is &c c6fcio one OF
he examiners, made investigation into the
.ffairs of the State and reported to the
Governor. We give the report, in a con-
densed form, below.
II shows q total of ST. l,O2O.S7 in the
Treasury, the full sum required by the &C
Of the Auditor, Comptroller and
State Treasurer, as well as the account
books and legal vouchers of the Secretary
of Stats.
The report COMMUNIST
By the Sd section of the act of April,
1865 Is. Sc G., page 1909 "The State
Treasurer, and each County Treasurer, Is
required to keep safely in his treasury,
without loaning, using or depssltlng IN
banks or elsewhere, all the public moneys
of whatsoever character paid into fucn
treasury; or otherwise at any time placed
in his possession and custody, till the same
is ordered by the proper department., or
oficerof the State Government to Detrans-
ferred or paid out according TO law; ana
when such orders for the payment ortrans-
fer are received, faithfully and promptly
TO make the same as directed"
The report then expatlates upon the
wisdom and necessity of such a law, n
notes q breach of it by the Treasurer as fol-
lows:
AS an example: There appears on n
report. ifty thousand dollars of United
States 7 3 10 bonds of the issue of June,
1865 ia series) deposited on the 29th of
May, 1865, in the Treasury by Bsrtlit d
Smith, of Columbus, Tor which they re-
ceixed from the Treasury currency under
the understanding to take up those Donos
in exchange for the July interest we
have no doubt the gentlemen acted in good
faith, but it is clear that they made q very
desirable arrangement by which they got
one months interest on $100,0O 0 having
both the interest on their bonds and the
advanced money OF the State. If it can be
done for q month, it can be done for long
or periods of time. The State suffered no
loss. In the event it will gain some fifty
dollars, the price of exchange; but it opens
the door for tavoritism and speculation. At
different times funds have been furnished
to banks in Columbus for check on Gin
einnsti for large amounts, with the object
of making them q basis for exchange. The
same remark applies to this as to the other
transaction.
The condition ofthe country and result
ing legislation have created q character Of
paper before unknown. The State has be-
come the trustee of the funds of her sol
diers by her allotment and bounty fund
ON.Ao a,- ehsa NJ
sision, the same character of funds received
should be paid them. The Independent
Treasury act, with its amendment, pre-
SCENTS no difficulty, for all this is done I'M
der special acts. Under this new state Of
things, United States Z $40 bonds with in.
terost coupons, compound interest notes
and the various classes of interest bearing
securities TO the amount of hundreds o.
thousands of dollars, have been paid into
the State Treasury. The accounts of the
/ Auditor and Comptroller. treating all pay
menus as cash, form ne check upon tn
Treasury, and the interest on these secur
tiles is continually accommodating. We
have e~ndeavored to ascertain the fidelity
with which this trust has been performed
We have examined the Treasurer anC
other witnesses under oath, and submit thu
testimony. o. .u
1t is clear in law and morals that
trustee cannot derive any benefit from
trust fund other than his legal compenss
ton. When the application of the interes
bearing bonds and notes are designated b.
the soldier, they are to be SO applied
when net 80 designated, it may, and if still
practicable ought to go to the soldier, which
it may by paying it out to the soldier
without regard to interest. All not so useC
remains with the State. Mr.. Williams
Pay Agent, says, in December, 1864, b.
paid into the State Treasury $4,000 in 7-3I
August issue bonds, coupons all on; tina
by agreement with the soldiers he under
ated BY them $flA,OOO. The latter sun
went into the Treasury. He Withdraw tn
$4,000, and procured from the Treasure
from 81, 500 to 81 geo for Co. E, and snothe,
amount from the Treasury of SAC, OO0-al
of these bonds of DR.. Dorsey, State Treas
urer-and expressed them to the soldiers
coupons n This testimony sccords will
the testimony of the Treasurer as TO tn,
use of these bonds.
Mr.. Wallace paid into the Treasury il
December, 1864 (2db 100000 of the 49,
bonds, coupons on. at the time he received
his salary from the Cashier of the Treasury
at $500 in these bonds as he requested, NJ
account being tsken of interest Neither
of these gentlemen have any designation
or entry of the number of the bonds.
We have introduced these statements Il
show that it is imprscticable to iden.
tify and trace these bonds, and to confirm
the Treasurer in his statement of theil
uses.
We found in the Treasury $lOl, 600 O
these 7.3O United States bonds. A pack
age of $50, 900 wa said to belong to Messra
Bsrtlit & Smith, of Columbus, deposited
on the 18th of May, 1865, to be redeemed
in exchange atthe July interest. Wehave
examined under oath Nh. Smith, with
whom the transaction was of fine firm Of
BArtlit & Smith; also Mr.. Joseph Hutch.
son, Cashier of the Franklin Bank, Colum.
bus, in regard to another package of 2 &c
U. y. bonds, and find the following facts
Part of the assets of the Treasury was q
sealed package of $50, 900 as above stated
another sealed package of $4,000 of 7 3-10
United States bonds marked "Frankiin
Bank and another. package of $Il, 900
same seven-thirties. The last two pack.
sges were of the issue of the 18th August,
4oOtT COupOuh L. m6bufluk p0DfuhrY 10,
1866, off-the balance 81 the coupons are
on the bonds. Also two United States
certificates of Indebtedness dated July 13,
1864, at one year, with interest at six per
cent, each for s., 900, making $4,000; in
all, according to our report, Sill, 9O0.i The
first package of $4,000 of Bartlit & Smith
has been explained. With regard to the
second Of A 10000, the Treasurer and Mr..
Hutchinson state that he had agreed some
three or four weeks ago to take these bonds
for currency or New York exchange ct par,
and took the $4,000. The $1,000, the
Treasurer says is allotment money. The
Treasurer also testifes that SIX thousand
dollars of these bonds he held himself, and
placed in the Treasury an equal amount
OF currency. ~ -
In regard to the two United States GER
t~iacstes, the Treasurer answers to quest ion
II: "Thecerti6cates, amounting to $4,000
belong to me. 1 placed them in the Treas
ury about two months since, and when due
July l3 1866, they will be replaced with
other currency. The interest belongs to
me-" In relation to the time of placing
the $4,000 bonds in the Treasury, he says
in answer TO question l3: AZ have not the
precise date, but TO the best of my recollec-
ton, not over one month since" The re.
suit of this is, that the Treasurer of the
State deposits securities in the Treas.
M. f0n a o0rror1orA;-- o-,ou,k -