, 1873-12-01
THE CUSTODY OF PUBLIC FUND.-,

A fow wcoks ago thero ca,ne revelation from
Albany, N. Y, that thero Ind been dofslcatton
iu tho state Trcasury, since thon the whole
business has been Investigated, and it appears
that tho public money aR received by tho Treas
urer was deposited by him In several banks in
Albany. The State Troasurership Is political
oflco, tho incumbent rarely over attending to
business personally, and tho details nro loft to
Bubortlinatcs Among tlloso subordinates vas
ono @. II. Phelps, who In tho nbsouce Of tho
Treasurer, and tho protractcd Illness Of tho
Deputy Treasurer, received tho money paid into
tho Trensusy and mado tho deposits in tho several
hanks. His boohs showed his receipta, aud tho
pass-bookR Of tho several bauks showed
tho deposits with thom. Ho, however, kept
another book which stated tho amounts
deposited BY him. On July 81, 1878, the bank
books showing tho deposits ngreed with
tho Trcasuror's receipts. During tho month Of
August Phelps charged tho Troasury with
e2O0, 900 received, and credited 1t with like
amount deposited, but he did not mike the de-
posits. Intlorsing tho drafts received by tho
Treasury "paY to o---, Esq, State Troas-
uror, por q. Il. Phelps, Oashior," ho sent thom
to Now York, whore they we're caHllcd, and
passed to his private credit. In tho month Of
septomber ho stole in like mauner slo1, ,771.sO,
making MI aggregate Of 1901, TT taken by him
IN two monthH, The discovery, when made, was
purely accidental. Phelps at once lcd. In the
course Of tho investigation It appeared that thoro
had been no comparison Of the books In the
Treasury, showing tho amounts deposited in the
banks, With tho books Of tho banks for year
and a half, and that this neglect WIS habitual,
extending back for several years. It would Seem
that Phelps uaoa tho State money to gamble In
stocks, aud was caught by the panic, md prob
ably lost every cent Of It.
In the City Of Pittsburgh tho City Treasury
has In like manner been plundorod. It seoms
that certain amount Of city bonds, duly signed,
but uoyor issued, belonging to tho wator fund,
wero in the custody Of one Of the subordinatcs.
This subordinate Ind personal intimacy with
tho Cashier Of one Of the banks. In somo way,
this Cashier induced tho city officer to lend tho
bank portion of those honda, Which the Cashier
at onco aont to philadelphia. and hypotlecated
for s225, 900. Just before tho panio, he got
another butch of tho bonds, aud on these he
| raised o comparatively small sum OF money. Tho
Cashier then departed, the bank closed, and thore
tho matter rosts,-tho cityhaving $500, 900 bonds
out for which it has received no consideration.
An investigation into the aiTaira Of one OF the
| counties in Ohio, a fcw days ago, revealed the
| fact that all Of tho four successive Troasurers
lust in office have gono out dofaultora. ALI over
tho country thore Is a general CONSERVATION at
tho detalcatton or standardization OF oflooB
in which public money Is kept. ALI this arises
from tho loose public morality prevailing on this
subject. Political parties have done all in thor
power to swell the profits Of certain Offices, os-
peoialy treaHuryships, aud then made It rulo
TINT Public Treasurors should furnisl tho 1naaua
to run tho politics Of tho locality. The regular
aud ordinary salary Of suoh an Office Ia not moro
than competent and honest man ought to got,
but the opportunities for profitable use Of pub
lie money Ia tho grand temptation. In Iowa and
| 1IinueBota thero arc notable caaoa where the
stato funds wore loaned out and lost. In 1857 whom
tho pauio Of that your struck tho Woetorn banks,
1t was discovered that the money which ought to
hayo boen In tho State Treasury at Springfield
was loanod cut an over tho stato aud largely tc
banks in st. Louis. Tho matter vas huslled ur
"for tho aako OF tho party" aud eventually the
money was got buck. the State Treasurer bong
forced to resign. Whore tho State monoy waf
when the ranio OF 1873 began ne do not know
but ASSUME that 1t was in tlo State Treasury
and that suoh thing aB lending It out to bankt
would not be tolerated by tho high public sonti
mont which prevails at Springfield. Tho onl,
Hafo plan for State and municipal governments
In the custody Of public mouoy is tho sub-treaa
ury systom. Tho City and County and State Treas
urera ought to bo compelled to keep the public
| mopaY In 4 nlaoa Of dauoat. dIaaonnentad Will