Lexington weekly intelligencer. (Lexington, Mo.) 1871-1887, 1881-01-15

nave been defaced SO as to destroy theil
negetiability, IN accordance with Law
OF the last legislature. This leaves il
circulation only SIS, 1928. 900 Of state
bonds, and the annual interest 10 only
S975,540. This does not include the
temporary loan OF $3.50, 900, which will
fail due next June. =s.I
-its 20 THE MASTIN DEFICIT. aar
The state treasurer, in January, 1879
reported balance of the money in the
treasury was "deposltsd and held" az
follows:
The Mastin Bank nk,....as as; lsT r.
Reid and ChrIsman ........ OV0 %
Clinton county bonds in vault ~, 900 Oi
The deposits and investments Of the
moneys herein stated were made with
out the consent of the attorney general
and the governor, and whatever security
the treasurer may have had was not SUBJ
mltted to the attorney general nor to
the governor, to learn whether or net
1t was satisfactory. In briet, the. de-
posts OF said money were made entirely
on the responsibility of the treasurer,
and without the advice or consent of any
state sfficer empowered to pass on that
question. In the month Of May, 1879,
there was paid to Col. Gates $5, ,S21 50,
on account of dividend due to him
from the Mastin bank. ii In October,
1879. the sum of 5000, deposited
with Reid and Chrismau,, and the
$49, 900 OF Clinton county bonds, disap-
pear from the treasurer's statement.
Ii those bonds belonged to the state,
then the money received en- Nhe tive
semi-annual coupons on each bend,
should have been paid inte the treasury.
In December, 1879, the Mastin Bank
deficit Is diminished S33, ,634 OIL, and in
the Trsasurer's annual report, made to
me in January. 1880. tor the year 1879,
it is stated he has realized the last nam
ed sum from his official bondsmef,, fer
which he has "assigned to them like
amount OF my, (hiO CLAIM against the
Mastin Bank" Another reduction OF
| the Mastin Bank, deficit took place in
June. 1880. OF $50. 700. said to have
been received from one of the
sureties IS upon the bond & gwen
by the. Mastin Bank to Col. Gates
tor the safe keeping and return
of his deposits. and paid in considers
tion that this bondsman shall be held te
no further liability on that account In
the month of July last, the further sum.
Of S43,709 SIS was deducted from said
deficit, which was received from the as
signee of said bank AZ dividend on u
CLAIM allowed in favor of Col. Gates,
against 1t. From time to, time, the
amount Of money Deposited with the
National Bank Of the state Of Missouri
was diminished, antil In September
last, it entirely disappeared from the:
treasurer's report. There IS now the
sum of $183, ,522 IS, as claimed by Col.
Gates. held by the Mastin Bank.
Promises have been made to me that
this sum should be paid before the
meeting OF the legislature, but those.
promises have not yet been redeemed.
No settlement was approved by the
Legislature OF the treasurer for the first
two years OF his term of effice, nor was
settlement OF his accounts made at
the time OF giving his new bond. The
laws did not permit nor authorize q
suit to be brought against Col. Gates
and his bondsmen; and the first time
suit can be brought on his effisial bond
will be when he shall fail to deliver to
his successor the funds which have
been entrusted to his care and safe
keeping. 1t there shall be ne deficit
if all the money with which he stands.
charged shall be legally accounted for
or on :, Maid .ssssihhiained. But if, on the con-
s1afy, he does not lawfully account for
all the money which came to his hands
and pay to his successor the balance,
Git any there shall be) he and his bonds
men will be liable on his bond for the
deficiency. But it is claimed the state
has priority Of payment over all other
creditors in cases of insolvency, and
that this principle OF law 10 applicable
to the case OF the Mastin Bank. That
the state, by express statutory enact
ment, has priority of payment over all
demands-except funeral expenses and
expenses Of last sickness in case ei the
estates OF deceased psrsons-and also
priority Of payment Of taxes assessed
on real estate, is true. But does this
priority OF payment extend to any
other cases Good reasons sx-
ist to cause such statutory
| provision to be made, but the
enactment Of law Of that import
cannot have retroactive effect. Ii
| the state eau assert aud maintain
| priority of payment in the case of
Gates deposit in the Mastin Bank,
aud cause all persons to whom the
assignee, III good faith has paid the
dividends in the same manner as
they have been paid to Col. Gates,
then must all who have received
dividends from the assignee Of said
bank be called upon and made to re-
fund the payments already made to
them, or sufficient L.. pay the deficit.
Aud If priority of payment to the
state exists in this case, aud can be
enforced, then the sureties of Col.
Gates, who have already paid more
than $50, 900 for him, can assert this
principle for their benefit. Aud if
the sureties of Col. Gates shall new
paw into the treasury the $163, ,522 IS,
now held by the Mastiu Bank. those
suretles would, by existing laws, be
subrogated to all the rights of the
stale. ...-..I= -...-
REVENUE BONDS. ..
In 1877 l found the treasury in q
depleted condition. Certificates Of
Indebtedness had been issued, llabili-
ties had been incurred, aud demands
fled with the auditor for settlement
in the year 1876, amounting to more
than 1926 900, as stated in my special
message to the legislature, in March,
1877. The revenues OF the state at
that time were insufficient to meet
the exigency. recommended TEN.
porary loan to be made to supply
this casual deficiency, (and would
have recommended larger sum, but
the constitution forbade) in accord
auce with the provisions of the sec.
ond clause of section A. of article 4,
OF the constitution. The authority
was given, and the loan was made.
The revenues of the state were mad
equate to defray the current expenses
OF the state government, the other
expenditures charged to the revenue
fund, and also to redeem those bonds.
Hence authority was given, by the
legislature Of 1879, to redeem the
revenue bonds by negotiating all
other per cent. loan, payable in two
wears. Proposals were invited. in
the manner provided by law, and the
loan was awarded to the highest aud
best bidder at premium of 81 per
cent, amounting to S6.875.
RATE OF INTREsT,
Recommended to the last egislature
a reduction in the rate of interest
Tie proposition at first was received
with favor, but afterwards alarm
was created i'll the minds Of some,
lest capital from other states should
be withdrawn. But during that
winter the legislatures of the states
of Illinois and New York considered
the question-the first named state
reducing its legal rate ef iutaroat m