Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1881-01-08

, 1881.
GATES INDEBTEDNESS.
Mastin Failure to be Made Good.
The whole Ind ebtedneas to be Paid |
at once into the Bank of Com.
merce. |
To be Turned Over Immediately. with
Certain Conditions.
Especial to the Republican,
JEFFERSON C1TY, Jan. 2.-Fer some
time past it has been an ''epen secret"
that the state treasurer was perfecting
arrangements to pay ever to the state at
his final settlement before going out ct
office the total amount of the indebted
ness dsvolving upon him and his sscu.
rites through the failure of the Mastin
bank, ut Kansas City, whore large
amount Of the states money had been
deposited. The following detailed
statement, prepared from reliable sour
css, sets forth q history Of the troubles
and plan Of settlement: .
When Col. Gates, IN January, 1877,
came into the Office of state treasurer,
he found the money OF the state, and all
the money Of the state, in two banks
the Aastin Bank, of Kansas City and the
National Bank of the State OF Missouri,
in st. Louis. He received from his pre-
dscesssr not dollar in money, but in
stead there were turned over to him,
with the sanction OF the general assem-
bly,, then In session. certain checks on
those TIVE banks-that on the Mastin
bank amounting to $4,000. Within
few days thereafter tho general assem-
lily and himself were alike advised by
the Official opinion OF the attorney-gen-
eral that the fifteenth section OF article
10 Of the constitution was not self-enfor-
cling. Anticipating early legislation to
carry this section into practical effect,
Col. Gates made only temporary ar
rangsments for the te.kesping OF the
states treasure, as appears in his con,-
munioation 20 the house In reply to- .
resolution of that body inquiring as to
such arrangements. In the communica-
ten referred to Treasurer Gates said:
''Inasmuch As there ls no statutory law
giving effect to section Is, article 10 of
the constitution, have not observed
the requirements of the same, but have
the various funds in my custody SO STU
ated that l can subject the same to the
requirements Of any legislation that may
be adopted for the government OF the
treasury department. Believing that
the present general assembly would at
an early day enact laws sntercing the
constitution, the funds in my custody
have been temporarily deposited IN the
following banks Tor safe keeping. and ne
interest has been paid for the same."
Gov. Phelps, in his message to the S0th
general assembly, said: THE duty OF
the treasurer with respect to the safe
keeping of the treasure of the state is
tsrsely defined. The law reads, the
treasurer shall receive and keep all the
moneys OF the state not expressly requir-
cd by law to be received and kept by
some other person. The law did not
require him to keep the money in the
safe or vault; it did not require him to
deposit it with any bank, nor with any
other moneyed institution. nsr was he
required to deposit that money where
interest ceald be obtained for the benefit
Of the state; nor was he prohibited from
dspositlng the money in banks. The law
lett it to the discretion and judgment ol
the treasurer alone, with no interference
or supervision by any other person OF
persons, to determine for himself how
and where he should keep the moneys
Of the state.'' t...
Notwithstanding this clear declaration
of the law by the governor supplemented
as 1t was by the opinion OF the attorney
general. and the communication of Treas
urerGates to the house. the session Of 1877
adjourned about the first of May of tina
year without passing any law to enforce
the provisions of the constitution under
consideration or to give them praetica
lite and effect. Throughout the entire
, session the treasurer, as he had informed
, the house, was compelled to hold the
funds OF the state as best he could, so a
to be able to subject them to the require
, msnts OF any legislation that the gener
al assembly might think proper to enact
and at Its close he was left without law
, iul direction to execute the constitution
: al requirements, without the legal power
|
force imposing upon him al Its resp0n
sibilitles. II he executed his Office II
, conformity to the constitution (Which, Al
best, he esuld only do IN part) the risL
and loss would be entirely his own
he adopted the views Of the law officers
Of the state and conforned his action sx
clusivsly to the law he felt that hs woul,
, dlsappoint the expectations Of the psO
pie Of the state and lose to the stat
treasury the interest on the public fnnd
that the makers OF the constitution
! deemed 1t wise to secure. His position
} was both perileus and embarrassing e
I Against his power to act under the 15tl
, section OF the constitution were the au
r thorized exponents OF the laws by whom
D he was advised TO pursue the Law by
l which his predecessors had been gov
T ernsd, before the constitution was mad
= or adopted-in fav or OF it were his owl
q inclinations, his safety AS he thought, ant
= the best interests OF the state. Witt
. ereditable frmness the treasurer deter
Q mined, in spite Of all. the difficulties il
t his pathway, to attempt the execution O
3 the constitutional provisions. but circum
: stances beyond either his prescience o
\ control determined the whole matter 10
, him. A bank to which, in strict conform
= ity to the constitution, he had awarde
I the custody Ol all the moneys o! the stat
8 utterly failed and refused to give sati.
Q factory security for the deposits IAN,
Q which shortly afterward made a disas
o trous iailurs), thereby leaving him n
. nearer the desired result than he wa
when the 29.h general assembly adjourn
ed. Before second effort could be made
and on June 10, 1877, the National Banl
. Of theStats sl Missouri.in St. Louis, clos
: ed its doors and Suspended in the pos
). session Of over hall million dollars .
. state money. which it had been ordsrs,
= to remit to New York. to pay the Jul,
/. interest Of that year on the state debt
: THIS last unexpected aud most disastrou
. misfortune destroyed every hope OF sue
? cess of further efforts to enforce the con
o stitution, and created but one fixed con
Q tlnuous purpose, that of saving the state
4 at al hazards, trem loss.
F. Col. Gates had been in Office barely tiv,
{ months: nearly four months Of that tim,
8 had been consumed in waiting for som,
Legislation that would be ga lamp unto
!, his feet" He had attempted the exscu
) tion of the constitutional provisions, ant
8 now the great bank of the state, enjoy
= Ing the confidence OF the people aud tn,
? commentators Of the press tor ncarl,
h0lf hoI