The Republican journal., 1870-03-31
PAPER CREDIT REPORT.

PAPER CREDIT REPORT.
Among the matters brought up in the clos
ing hours Of the Legislature, was the report
of the Committee appointed to enquire into
the Paper Credits and kindred matters. They
made the following report:
After the appointment and organization of the
Committee. there was an unavoidable delay in OBJ
tanning the necessary abstracts from the -tdiltan
| Generals Office, as much time and labor We're re-
CURED III making Them so that the end OF the Se>-
sion drew near before the committee could fairly
get ri work. On account of the various duties Of
| the members Of The committee. that could not he
disregarte'l, they have found it almost mpoS,ifeto
find time ior this investigation.
! Your Committee first investigated the charges
against towns. as they appear bv the books of the
Adjutant Generals Office, for deficiency ofmcn I'M
der the call of October Il, 1863. Charges We're found
against one hundred and twenty-five towns of the
State, varying from TWO hundred to seven thousand
dollars. Your Committee found that on account Of
these charges, these towns unable to draw
the whole or any part of the bonds awarded them
| by the Commissioners ON Equalization.
| These charges are said to have occurred late in
the year 1863 and in 1864, of which during the past
six or seven years. many if not all of the towns had
received no notice. During this time, a committee
had been raised by the Legislature to inquire into
the financial condition Of towns in relation to war
matters. This committee know nothing of these
charges, we have been assured by the author of
the bill for the Assumption of the War Debts, that
the bill Was drawn without any reference to those
charges. The Commissioners ON said Assumption
were in session Il year, and they know nothing of
them. And considering the important fact that they
did not appear on the State Trea>nrrr's books rs
assets of the State, and the further fact being patent
to all, that it the intention of the Legislature,
when they provided for the Assumption OF the War
Debt to relieve the towns off, part at least, of the
burdens that were weighing them down, it is not to
| be wondered ut that towns viewed those charges
with dstrust and refused to pay them. and that
they demanded an investigation OF them The the
DRY in explanation of those charges offered by Adj
iltant General Iodsdon, substantially is follows
That under the October call of 1868 the State paid
bounty of 800, and that 800 about the eStab
lished bounty paid by towns. Under this call some
towns filled their quotas some more than filled thcm
and others did not fill them at ALL In February of
the following year, another call was made, into
which the October call was merged. There was al
so another call in March. and another in July, and
one in December. During the month of February
a law was passed. giving to recruits $500 State
bounty.
This law was in force until cut otfby General
order No. b, under date of November 4. 1864,
which order it is stated was positive necessity.
though in violation of the existing law. After the
passage of this law the State paid the bounty Of
| $500 without discriminating between those men
mat MAJ, were put upon the October quotas when only
800 was paid and those that We're put upon suisse
qucnt calls when $500 was paid. They then called
upon the towns TO return the number of men to
whom they had paid town bounty under the Octo-
ed on the books to the towns, at the rate of 5000
per man. But in making up the accounts it is not
pretended that they were made up from the Pay
Rolls, where all the men had rcceipted. But when
ever Il deficiency was found in the October quotas,
it ''was preSImed' that the State had paid the
bounty, andt was accordingly charged, thus throw
| ing the burden OF proof on the towns. That is to
say instead of the State showing why and for what
the towns We're thus charged, the authorities then
in power, throw the burden on the towns to show
that they did not owe the sums charged. 1t is not
claimed that this course was supported by authori-
ty of the then existing law, except inerPntally. So
much for the explanation of the authorities then in
power. The Committee has examined the cases of as
many towns as their time would permit. In the
case of the first town they examined, they found
the state had charged it with 34OO for 4 deficiency
of seventeen men. under the October call of 1868
and that the State had paid 5000 EACH on the towns
account.
/ On examination of the Pay Rolls in the Adiutant
Generals Office. they found that the State had paid
but 500 and the town produced receipts for
fifteen OF the men, and assured the Committee that
they could account for the other two Thus il was
shown that the claim of the State was without
foundation. In the ease of another town they
found charged with 81 400, it was ascertanctl that
the State paid $500 EACH and that the town paid
brokers $3.50 each. A case Of very great hardship.
for this town raised more than sixteen per cent. of
its valuation to p:y its wal debt. Your COMMITTEE
were led to scrutiniZc this carefully, and the
evidence showed that they put in latter months of
1864, fifty six men to fill preceding calls: twenty
two of these men taken to fill the October
1868 CALL for which the town is charged 81 400.
All but SIX OF these men were enlisted and paid
after the General Order of November 4th. 1864
had been issued expressly stating that but 500
State bounty would be paid on quotas filled under
existing calls.
The orders for the payment of State bounty,
We're presented by well known firm of substitute
brokers' Now, while these orders were paid to
substitute brokers in defiance of Order No. 81, it
has been shown to your Committee that town
agents were held to the strict letter of the ORDER
The explanation of this that the call of October
11th 1868, and the call in the early part of 1864
were not considered existing calls. Your Com
mittee examined the case of another town charged
200 for deficiency of thirty-siX men. Your
Committee think that the State has no claim in this
case There were other where the towns
did not dispute that the State had paid the bounty
for deficient but the authorities of those towns
, testified that they had never been notified of their
Indebtedness for such bounty paid.
A large class of towns remote from the State
capital brought to the notice of the committee,
, which had responded until every available man
had been sent forward and their pecuniary re-
sourses exhausted. A number of these towns
now find that they are indebted to the State for
more than the bonds awarded them. These seem
to be cases of peculiar hardship, and if the theory
of the former officers of the State is carried out it
will work very great injustice. InOrderto do justice
to this class OF towns and in view of the fact that
these deficiencies were for men and not for money!
and that these claims had laid dormant for so MANY
years. majority of the committee We're at in favor
e of conceng allthese charges at once. But fearing
that injustice might be done so many towns which
have already responded and paid these charges
and possibly that the interests of the State might
suffer, your committee have concluded to recon-
mend a method of adjusting embodied in the re-
e solves which are herewith submitted.
Your committee were also to take into considera-
ton SO much of the report of the Commissioners on
the Assumption of Municipal War Debts as relates
to 'sPaper credit" Naval commission Men, and
other matters therein mentioned This part of the