The weekly North-Carolina standard. [volume] (Raleigh, N.C.) 186?-1869, 1869-02-10
Letter from the Public Treasurer
Reply to Mr.. Sweet.
STATE OF NORTH CAROLlNA.

this communication to your honorable body
touching certain transactions which have
been urged before you, to the disparagement
of my official action.
Being conscious of rcctitude of intention,
and having taken great pains to ascertain
my duty, and then strictly to perform it, it
is my sole desire that all may know the
simple truth, trusting to that as my iustifca-
ton.
There are four charges impeaehing my
official conduct list. 1t is said that, while
refusing to pay members of the Assembly in
July and August last their per diem and
mileage, paid to Mr.. Pruyn the amounts
due on certificates he purchased from mem
hers at a discount 3D. That | delivered
Penitentiary Bonds to the amount of $780,
900 without authority of law. 3d. That
accepted an unstamped mortgage from the
Williamson and Tarhoro' Railroad Comp;,-
ny, and one unregistered as well as un-
stamped mortgage from the Chatham Rail-
road Company. 4th. That the Chatham
Railroad mortgage, securing 100000 of
company bonds, was accepted by me pre-
maturely and improperly, inasmuch as there
was no property conveyed.
LII OIL IhSoV LiuttCio my SilllSo plulCoS "
believe, with kind of charitable contempt
for my understanding, that have been the
unconscious and guiltless dupe of designing
and INSCRIPTIONS men.
I CLAIM NO SUCH Defence. What have
done, did after full reflection / am pur-
suaded any faithful officer would have car
ried out the law as l have executed it.
feel assured any candid man will approve
my action. In truth, have been careful to
conduct my office according to the strictest
rules of propriety and law l employed as
my chief clerk Mr. Donald W. Balm, who
has been in the Comptroller's or Treasurer's
office since his boyhood, and whose system
atical and accurate business habits, perfect
integrity, reliability and intimate acquaint-
ance with all the details of my Department,
are known throughout the State. 1t is my
habit, as it has always necessarily been the
habit of my predecessors, to entrust to the
chief clerk the executions of the details al
the Office The facts mentioned in this conf
munication came mostly under Mr. Bain's
personal observation, and will he substanti-
ated by him.
In the outset it is proper for me to state
that, when examined before the COMMITTEE
of Investigation" urged Upon the Commit
tee as certain and speedy mode ofaIriving
at much OF the information desired, to sum-
mon my chief clerk and other clerks with
the books of the Office This was not done
and hence in one of my statements there is
an inaccuracy, though not an immaterial
one. When asked if Mr. Pruyn was paid
the certificates of members purchased by him
l,af off 81 m A00 H., g..
the State National Bank, l replied that l
thought it was before. On consulting my
hooks, however, find that was mistaken.
Pruyn did not receice one cent on orders or GER
tifcates until the Treasury ,eas repLenisled 6y
the a6Ooe mentioned loan. With Pruyn | had
no acquaintance until after he had purchas-
ed the orders or certificates mentioned. Mr..
Pruyn received no money from the Treasury
until within few days before the adjourn
ment of the Assembly and not until nearly
all the members had been paid in full.
The following is plain statement of the
facts in regard to the first charge: In July
1868, for two reasons, firstly because the
General Assembly had passed no act fixing
the amount of their per diem and mileage
secondly, because of depleted Treasury,
S'ASiefNt w oufduNO OHly plUU
on account. Some members, whose necessi-
ties required more than this amount, drew
drafts on the Treasury and had them dis
counted; some by Mr.. Pruyn, some by the
Raleigh National Bank. Afterwards Dor
rowed 100000 and was able to paw the
members and officers of the Assembly in
full, and then not until then acre Mr.. P1uvn
and tile Bunk paid. Neither of these parties
had any settlement with the treasury until
there was general resumption of payment.
Neither had the slightest advantage over any
member. Neither they nor any other person
has ever received money from the Treasury
when the demands of others were not paid
on presentation.
This charge and the insinuations connect
ed with it are totally false. The converse
ton which l mentioned as having had with
Mi. Pruyn, which has been cited as evidence
tnat played into his hands" was casual
one IN front of my hotel, in presence of
several members of the Assembly. At that
time did not even know the name of this
gentleman, and the remarks made by me was
merely an assent to the general observation,
that as the Treasurer was not paying the
members in full, some might be induced to
sell their drafts at discount. No under
standing was ever had by me with him or
any other person, and not one cent OF profit
has accrued to me or my clerks from suspen-
sion of payment at the Treasury.
Q. PEN1TENg4ARy BONDS.
My action in regard to the issue of $780,
600 State Bonds on the order OF the Peni-
tertiary committee, approved by the Govern
or, has been criticised as uEwarranted by
law. In this matter acted as has been the
inyariable practice since our bonds fell below
par, about 1856. The Western North Caro-.
lima Railroad Company has obtained from
the State millions Of dollars of bonds at va
rious times since 1856 in the same way. So
did the Wilmington, Charlotte and Ruther-
ford Railroad Company. The Atlantic and
North Carolina Railroad Company obtained
bonds under the law of 1856, in aid of that
corporation in a similar manner. The Insane
Asylum resorted to the same process. So
did the Western Railroad Company. Others
might be mentioned. According to the
letter of the law in these cases, the Treasurer
was ordered to sell the bonds at not less than
par, and out OF the proceeds, pay money to
the corporations. AS the bonds were uuder
par, the corporations entitled to the money,
always bid Tor and obtained the bonds and
sold them to the best advantage. So under the
Funding Act of March 10th, 1866, the Treas
urer was ordered to sell bonds and with the
proceeds OF the sale pay off the past due
coupons. Practically, mere exchange was
made OF coupons for bonds-in other words.
the holders OF coupons paid for the bonds. Just
SO IN the Penitentiary purchase, the parties
seiling to the committee bought the bonds
at par. | had no right h enquire, neither