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iew. of i d c on-[From^he In^na Sip Scritiifel.] ft A few weeks'afVa Bank was Oi'gafi-r )f put- ized under the ^uieral J)ankin law of dition, ihis State, b\* the title of the Booile Co, nr therlhm%: and Lebanon,vvas sehjctc^d as sooner the ostensible place for the transaction 8 of 'a;of its business. A New York broker 1}* ap-1 furnished §55,000 in Tennessee and or the I Virginia bonds to secure ttie bills of jvision ; the.Bank, and the Auditor issued upon of the ■ this, security §45,500 of circulating jasurv. notes. We believe that §21,000 of the ro ro-: bills thus obtained have been putin lot one circulation—the balance are on deposit future;with the Branch of tho Bank of the 3. To: State in this city as collateral security sion or;for ths.amount due upon the bonds;— uld re-‘The bills were engraved by a concern and we;called ‘-The New York Bank N3 ’^tstwrt li|$lt;i iu^tutfifi. plate oh(Umbs^Milroy drift M. fllt;|%e.s, | ,, . . , ^Bfack f5rot her, l£^il«f,-.^pddW, I Briday flight th^Brc%idenfbf tfii Bank,’ McLean, of Lebanon; John H. Mott,|A. Spooner^ and Mr. Sweet, of Ne1 ^New York, ancf'iSjnight','*of. Ybrlv^Woodhainy Long Island. Mr. Spooner, |-6tart and br^a^ banks, ,received an in-the Piesidcnt, and Mr. McLean, the j limalion from a friend that if theyCashier of the bank, filed an affidavitJ wished to escape the ‘ lock up” they that they, were citizens of Indiana and ■ had better make tracks. First one then residents at Lebanon; but we bdlieve J the other took buggies for Greenfield both of these parties have had their lo-j during the small hours of Saturday cal habitation in the hotels of this city. I morning, and from thence left for parts Tho cashier has been in the habit of unknown—perhaps their country for going to Lebanon , on the noon train j their country’s good. At a late hour and returning in the evening; and the;Mr. J. McLain, tho cashier and Mr. President, lias gone backwards and for- j Miles A. Bradley, were arrested upon wards as his onerous official duties de- j the charge of issuing fraudulent* notes manded. Tho securities deposited for j on this bank, now in circulation, and in the redcn ption of the notes issued by j the afternoon, while these parties were ■ the Auditor, were §28,000 in Virginia'in court, J. B. Hussy, J. B. Hager andCompany,” and are of inferior appear-j bonds, quoted in New York at 87f, andI — — Chipman, iormely of Blackford ance. The individuals engaged in the!§27,000 Tennessee, quoted at 89c. —!coui.ty, as aiders and abettors. In tho enterprise arc unknown to our Bankers There were §14,500 circulating notes \ evening Mr. Kingan, the clerk of the and Merchants, and they brought with issued upon these securities, equal to institution, likewiso found accommoda-Idress- | them no evidence of their ability to eighfj’-one cents upon the dollar for the | tions at the public expense. The sev-bcr of;safely and successfully carry on the j stocks deposited. Unless the stocks I oral parties waved an examination,on of a;business of bankin; ov 8. There is no prqfit in stock b; zens to under tho free bank law of Indiana, if here.— honestly conducted. Our most skillful| depreciate below that valuation the se-1 each was bound over in tho sum of jcuritibs will be amp'c to redeem all the j §5,000—in default of which they were '.nuino notes issued. i removed to the county hotel.The spurious and genuine notes in | All of these gentlemen stoutly assertn Pres-1 financiers have tried the experiment circulation are from the same plates, \ their innocence. Mr. McLean thinksvotary. ! faithfully,, but abandoned it because it | which implicates the engraver, W. L. j himself not. only innocent, but a muchmoved ji would not pay. They found that capi-! Ormshy. of New York, in the fraud.— j abused individual. We believe he pro 1. llen-ital could be used to far better ad van-1 Both kinds have been examined by a j fesses to have been, and perhaps still is an clo-'tage. In fact the individual who says' profesMonal inspector of bank noto en-1 ignorant of any difference in the issues Lon. W. he started the Boone County Bank fir 'srraving, and he decided that there could j of the bank, ami as proof of tliis he t large,; parties who now hold it, remarked that be no doubt whatever that both kinds! made no discrimination m receiving y with he could see no profit in a stock bank. I of hills were from the same plates.— jand paying out over the countur of the unless a fraudulent issue could be ob- The denominations of both tho coun-iinstitution both the spurious and the mty obtained to put out with tlie genuine.— teri'eit. and the genuine are the same nes and; Such being the case, the establishment one's, two’s, three’s, li Mowing vf a new bank by strangers naturally twenties. The engraviI excited the suspicion ol our business I that only fifty thousand dollars of these! genuine notes. Can’t he point to this ’s, ten's, and j fact us 'overwhelming proof of his infiled an oath : nocenee? Mr. Bradly and Mr. Hager they were here to secure debtsof Lin- J men as to tho integrity of the intentions 1 notes had been struck from the plates,! against some of the parties connected ncyaiul;of those engaged in the operation.— but this affidavit is evidently false. j with the bank, and that they were States,; From the start the bills had but little Our Bankers, yesterday, received 'teetotally ignorant of any fraud being bmitted credit, most of the banks and business remittances of the Boone county! practised. If so, it was unfortunate| men of lt;Leg-1 The hi!by: acity refusing to receive them, i Bank cm : jut were returned to the bank I their cor re, however, promptly redeemed.ency, which they returned to;for them that they were caught :n suchespondi ved in Clits.A New York §359, all of:alSena•The only question with those who had j which was spurious. He says the banksn the matter any attention, was .ingress, to the way our Boone county bant rnor in! intended to make the institution pay.! in ople to ! A few days ago the modus operandi de-; 11 surcs of : veloped itself. Several bills made their j tion tli appearance which looked very like thelyestcn tie issue, but upon inspection they!ail uf lt;e info; were found to be bauds. The genuine; We le; ssingofjaml fraudulent notes were doubth deviate i stricken from the same plate, but the If filling up of the latter is an imitationdly re-;.there received and paid out just such notes as lie had, and that the amount in his posse sion came from one of them.i quite a quantity in circula-Anolher person was here from St. Louis with §5,000, ■h was the spurious currency, hat §5,000 was remitted from New York to a banker in Terre Hautebalt;l company. We believe Mr. Hussey is in the same fix. He is excessively indignant that any suspicions even should tarnish his fair fame, and still more so that they should lead to an overt act restraining his personal liberty. We believe that Mr. Hussy was also in this section of the country looking after some small claims against the Boone County Bank. Mr. Hussey certainly deserves a great deal of commiseration in the unfortunate plight whichailaiof thebut he finding out the! he finds himself. It is exceedingbaracter of the currency, immediatelyto con-j—a counterfeit, not only the names of;sent it back. The cashier of the bankpolitical I the Auditor and Register, but also the President and Cashier. So clo •esemblance that it requires some littleIly sug-mediate forces oft delay.*~aid to a young man who resides in Boone county, day before yesterday 400 on a check, and the bill;skill to detect the spurious notes. Theiamincd by tire President. The yonnj mprossion of the latter is not qutito as J man was going to Fayette county,heavy as the genuine, and the paper is! thinking t! of lighter color and poorer qualify.— 'the officers The Auditor and Register pronounce j good circul their signatures upon the latter describ- j the city he ed bills as counterfeit. There is no m be- doubt that a large amount has been put ire re-; in circulaiion. One of our bankers yesterday received a letter from Iowa ia was i inquiring as to the standing of the ban1: aling that a large amount of the bills arc in circulation in that Stale. And ddrosses: our banks yesterday received from their ent pro- j correspondents more of the spurious than the genuine bilis. One received , Mayor §178 from Chicago, §140 oi which was - i the counterfeit.; notes all is monu-presenceadd ret, promised of tlie bank to give them a ition. On his way through heard the reports in reference to the institution, and he took the currency to A editor's ofiico for inspection. It was all pronounced counterfeit. except about §35. The officers of the bank must, have cc'tainly known the good from the badThere Is no doubt but large amounts of the fraudulent hills have been put in circulation in various sections of the country. The fraud was an admirably devised scheme to swindle the public, and if the credit of the bank had firstizens on;The officers of tho Bank yesterday ! been established, a large amount of the aade no distinction in tho redemption j spurious notes might have been issued,Sov 9. jof the genuino and spurious notes.— 'if they had been prudently put out.—ime .vith fif-[ !§130 was sent from here for redemption, | But the bankers, either from necessityk inridge ay trom Carolina§45 of which the .Regi.-ler pronounced;01’ bad management, were in tod muchcounterfeit; hut the entire amount, good haste, hence the quick exposure of thesecessionLincolnov 12. held in at Insii-thc coii-The gal-J udgeand bad, was redeemed in gold. We do not believe the Bank will continue this kind of redemption for ail}* length f time.This is free banking with a vengeance. It is a well laid scheme for fraud upon the public, but the necessities of the bankers have developed the fraud sooner than they intended it slic'd be. Tim plan was admirably devised, and if the operators had had sufficient capital to have first given the genuine notes good credit, the spurious might have been put lt;ut indefinitely, but thefraud.MOII 1C OF THE BOONE COUNTY BANKMr. Lauman of the firm of Lauman Hedge Co., bankers, of Burlington, . ’ Towa, was in tho city yesterdaysome §1,000 of tho bogus Boone County Bank notes. The firm purchased them of A. Spooner, the president of the bank. Currency is scarce in Iowa, and an arrangement was made by Mr. S. to supply the Burlington Banking House with what it could use during the pork packing season. They took the §1,000es were It, Rhett,; forcing of the fraudulent notes into eir-!and -aVC a draft.f St' lmh at * Pbr ;elation from the' start at c nee let day- jcofl* premium and charged * per centiglit into tho operation. As it is there When i no t0 wlmt' extent the coundissolved ^ tci’fciW*-have Been put upon the public,wjj(j | until the fraud is generally exposed and,ssed by I Polished.This new species of fraud will havein their jfor circulaiing, making it equal to 14 per cent premium for New York funds. The understanding was that tho bills .should be retained asbovt time and then paid out in ordinary business transactions. An objection was made to the appearance of the bills, but this Mr‘'•Mi!* ft1 * weaken ocmfidenee in ulljg onJ,. 9ilid al,ould bc ob,iatod in tlle urs;M0CK Bank note Tlfo eommumty; ^ baM, Mi. Lailman ^ if ; have looked alone to the securities ofl„ , , — A,- - .... nabt that i these iVanks for protection, and that has j dalmelto ‘given them circulaiion*, but the frauds lie Cour- j we have described will faint all with :tto flag !■ suspicion.fraud hail not been discovcd tbey proba-bl}*: would have taken at least, §10,000 upon tho same terms. From this- transaction the nature-of the swmclle can be seen, and the.modo of putting tho fraud:-Carolina j It is roported that ^the spuripus notes uicnt p0te»,into:;circulation. . All theOn i were filled up in this city. . If .so, the 'ith room matter should be thoroughly invcstiga-jtcd and tho guilty parties brought to -morrow ! punishment, if possible. And the same ;course should be followed with all who mse from i have participuted- 6’aud, *it thoid for se- ;law pvovjdps.ibnj;penalties for-.thus-dc-frauding.jtho comaputy.that the! r, YUllTIiKR UKVEtOPMSStS;;oail the! Thc^idfotying pepjonsriwicordwig,toj; ititely. . (tho urticlos of association on-fdijn the]notes gvvcii to Messrs. Laaman, Hodge, Co.ywere djountevfoit; If sharp ban k-ersy.accitstoiucd to defiling in currency, could- be thus, xiicceived, the public in general could have boon imposed upon witlb greatorfability. Mr. Spooncrwas ficcompaniod in his visit to Iowa by Mr. ‘Bradley, which fixes his - complicity in the fraud.P(,lGUT;OF TdBSlipleasant, and nothing but conscious in-; bears him under his very an-1103’ing trials. Mr. Chipman's black-lied eyes give him the appearance of laving run against a Boone county stump, and we presume he thinks it all wrong that he should be confined for adding to the circulating medium the country. The clerk, Mr. Kinga was onh* cariv ing out the instructions plovers, and lie is decidedly of the oiiinion that the principal, not the agent, should be held accountable for anything he may have thus done nst the Statute of Indiana. Messrs Hussey and Hager are to have an ex-,ination before .Esq. Sullivan this ^ morning. Over §5,000 of the spurious notes were found in the possession of A the latter, but this lie avers ho received in good faith, on account of. his claim. T1 Both of these gentlemen expect to pass the ordeal triumphantly and once more c enjoy the sweets of liberty'.Large amounts of the spurious notes are being sent to our bankers from va- ,*'' rious parts of the country for examination and redemption. Unfortunately ^ for the bill holders the bottom of the bank is out. We believe one of the al operators sent up on Frida}' a batch of notes, which emptied the vaults of the last dollar. It is impossible to guess even the amount in circulation. Some estimate it very high. The bank will be put into liqidation immediately' by ^ the Bank Department, the bonds sold all and the good issues redeemed probably t!l at their face.The operation was designed for a gi- wl gantie swindle, but there wore too nia- m, ny sharpers and hungry men connected ; sdlt; with it to cany' it out suecessfuly.— kn Fortunately it was nipt in the bud.—; We presume the evideoo in the exam-! i inalion this morning will show up the' scheme and perhaps many of those en-j ga.^ed in it. Its failure is a striking)'}] illustration of tho folly of attempting] nt to live by one’s .wits, instead of pur-!clt; suing per,severingly some reputable cm-1 IS ploymcnt.Well Done Dubois.—The county of R Dubois gives 1,046 plurality for Doug- . l;is. The vote stands: .D wglas 1,347 ; F’ Lincoln 301 ; Bell 20 ; Breckinridge 2. ^ The Democratic editor clown therejthus; A jubilantly emarks: • ' C], “Again wc send the; glad tjdingiv to j tho Dentoeraey of the Union that Du-! bois county refuses to be sectionulized. I c She has spokeii ip; thundor tones, by.j !,046,majority, in. favor of onrglorious) ki Union as it is, and Rgaiusji sectipnal; division, in favor - of thp rjg;bf , of thej -peoplptogovern tjhopspIve^jipd-agfilnst jjto:
Newspaper Details
Rochester Sentinel
Rochester, Indiana, US
Sat, Nov 17, 1860
Page 2
Full Page
Clipped by
Lebanon P.
Indiana, USA 18 Dec 2023
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