[1][2] Canal scrip were IOUs the state had begun issuing in 1839 when it ran out of money during a fiscal crisis.
In February of 1859, the state auditor, Jesse K. Dubois, reported to the legislature that bundles of canal scrip had been illegally redeemed in 1857 by the immediate past governor, Joel A. Matteson.
A senate investigation found that scrip previously redeemed and cancelled had been transferred to then Governor Matteson from the canal office in Lockport.
The Democratically controlled legislature passed a resolution accepting Matteson's offer and the investigation ended.
[1][3] Not satisfied with the legislature's action, the Republican state officeholders referred the case to the Sangamon County grand jury for review.