The Cleveland leader. [volume] (Cleveland [Ohio]) 1865-1865, 1865-09-14
THE STATE TREASURY.
Statement of Treasurer DOEsey-His
Defense Against b Charges OF b
state special BxamI ners.

Treasurer, Mr.. Dorsey, in response TO the
repor. of the Special Examiners Of the
Treasury, published on Wednesday Of last
week. As Mr.. Dorsey has since been ar
rested upon a warrant issued by the Gov
ernor, based upon the charges made in this
report it is due to him that his de-
fence should be given to the public, and
we append the material portion thereof
He says; u rrli
~ will take up the allegations said by
the Ohio State Journal to be made by the
Report in the order given by that paper,
and then ask the people OF Ohio if the
Treasurer has stsbused the trust reposed in
him by the people of Ohio, has outraged
the confidence of the party BY watch he
was chosen Treasurer, and has violated the
law which he swora TO obey when he en-
tered upon tie duti IS Of Office" Z.
The allegations are seven in number
Hlst. That by means of a special coin
deposit, somebody is making interest from
the money of the State" p s.3s Ell
Mr.. Dorsey says in answer to this charge
that he made a full statement TO the last
Legislature in regard tothis deposit, which
amounts TO only three thousand dollars.
He says:
@This was simply s.. 900 in gold coin,
left by 8 gentlemen OF Columbus who
took $4,000 in paper, with my promise TO
return him the gold when called for by him.
There was no consideration promised or
paid; and the State was no worse of for
having $1,000 of coin in the vault in plsce
of $1,000 in paper, This coin has now
been returned"
I'd. HThat assets found in the Treasury
were not of the character required by law"
This can only refer to q United States GER
tifcateo of Indebtedness due July 18th, 1855,
for $40, 600. This was worth more on its
face than either the z $40 bonds, of
which we were obliged to hold thousands
for snldiA-a' ~lla4mants, and of which we
have received more than @loU,V0U since
the examination of Mr.. OldiH, and worth
even more than the legal tender notes
which we're the principal currency of the
Treasury. 1 should never have placed it
there hsd / not known that the State, even
in case of my death, would get more than
$4,000 dollars for il, and hence could
suffer no loss. 1t was as fully of the char
scter required by law as were the bonds
we were obliged to receive into the Treas
ury. q
Sd. "Thst large unauthorized balances
have been kept in the Ohio Valley Bank
at Cincinnati"
Mr.. Dorsey process to explain that this
bank, and the American Exchange Bank
of New York were not chosen by him as
agents but were used for years before he
came into Office. He continues:
Now how did these large balances with
this Bank occur2 Our Monthly Reports
show that for more than q year past, we
have had in the Treasury from half 8 mil
lion to q million OF dollars of soldiers sllot-
ments and soldiers claims. In January,
February, July and August, 1865, we had
generally at least n million and 3 half
ofthese funds. They were here awaiting
the drafts Of County Treasurors. Large
amounts of these funds were received in
Psymaster's checks On Louisville, Ken
lucky, Cincinnati, New York and Phla-
delphia; These of course could not be held
in the Treasury, we must either collect
hundreds of Thousands of dollars by express
at great expense to the State, or send
these checks or drafts TO one of these two
banks for collection. I informed Auditor
Goldman that / generally sent them TO Gin
cinnati, where they were collected without
expense, and exchange furnished TO US at
all times when needed, without charge.
No fault was found by any officer with this
mode of trsnsscting business. The Gov.
ernor's office, Fund Commissioners office
and every Office IN thessStste House: sent
TO US almost daily, and still do SO, for
drafts on these banks, thus showing that
they Acquiesced In this system. Ifthere is
any fault or violation Of the law, it is not
in the Treasury alone, but every Office in
tho Stata Aonse pAEtAkeA0fi6-6Rtt there
is in truth no fault. No currency was
ever deposited with these banks, unless just
in time to pay for exchange required be-
yond our balances. / have been informed
that heretofore the State has usually paid
from $4,000 to $4,000 q year for exchange,
and although the price has been lower for
three years past, it would still cost very
nearly this sum, were we to wait until it is
needed snd then go into the market TO pur-
chase. / believe during my two terms,
nearly four years, it has cost less than
Four Hundred Dollars ~61togeSher. Nor
have The Fund Commissioners, as they
Will all testify, had any difficulty in get
ting their exchange the day it was needed.
Mr.. Dorsey proceeds to notice the sug-
gestion of Mr.. Odlin that the funds depos-
tied in the Valley. Bank, for procuring ex.
change in July last were entirely too large.
As it is not charged that in this respect the
Treasurer violated the law, it is unneces-
sary to dwell upon this point.
The 4th and 9Th allegations are as fol-
lows: .
4sh. That Bartlett s. Smith, Bankers of
Columbus, had the use Of $4,000 from the
Treasury for n month, in lieu of which
they were permitted to deposit Z $40 us.
bonds, on which they received the accru-
ing interest"
18th. "That with the Franklin Bank
of Columbus a similar transaction was
had.n e
In answer to these charges the Treasurer
refers to the following testimony before the
examiners: 5ra
TESTIMONY OF B. Z. SMITH.
N"