A'.- > tr, ^ I i ■•^rr^^ r" 7 "<^i^^ ^:* /' V ■^^ .^'^ r \ / > r ^. / ■i - \ J I r ■r t^ ^f^ < " 25th Congress, j^ep. No. 313. Ho. op Reps. 3 (i Sess ion. DEFALCATIONS. REPORTS OF MAJORITY AND MINORITY. Wednesday, February 27, 1839. Mr. Har'.an, from the Select Committee appointed on the 17th of January last to inquire and report as to defaleations of public officers, made a report ; when Mr. OwExs, of the same committee, on behalf of the minority, by leave, submitted a report contaming the views of the minority upon the subject-matters of inquiry committed to the com- mittee. It was then Ordered, That the said reports do lie on the table-, and tliat 5,000 copies thereof, with the journal of the committee, and 20,000 copies thereof, without the journal, be printed for the use of the House. REPORT OF THE COMMITTEE OF INVESTIGATION, Chosen by ballit by the House of Rppreseni.it ivcs January 17 and 19, 1839, ox THE SUllJKCT OF THE DEFALCATIONS SAMUEL SWARTWOUT AND OTHERS, THE CORRECTNESS OF THE RETURNS OF COLLECTORS AND RECEIVERS OF THE PUBLIC MONEY; THE REPORT MINORITY OF THE COMMITTEE. FUINTED BY THOMAS ALLEN. 183<). Rep. No. 313. TABLE OF CONTENTS. Page. Copy of resolutions of the House of Representatives ctfiating the Committee of In- vestigation ------._- 3 Prefatory remarks - - - -- - - - - 4 Part I. The defalcations of Samuel Swartwout _ _ . . _ 8 1st. Their extent _---_... 8 2d. Their duration --------10 3d. Their causes ---.._. .27 The causes are divided as follows : Cmise 1. The irresponsibility of Mr. Swartwout in pecuniary character at the time of kis appointment to office - - - - 28 Cause 2. Culpable disregard of law and neglect of official duty by the late naval officer at New York . _ _ _ _ 33 Cause 3. Culpable disregard of law and neglect of official duty by the First Auditor of the Treasury - - - - - - 41 Cause 4. Culpable disregard of law and neglect of duty by the late and present Comptrollers of the Treasury ----- 52 Cause 5. The discontinuance of the use of banks as depositories of the public moneys, and jx-rmitting the same to accumulate in the hands of Mr. Swartwout --.___- 71 Cause 6. The negligence and failure of the Secretary of the Treasury to discharge his duty, as the head of the Treasury Department, charged )y law with the su K-rintendence of the collection of the revenue 73 Part II. The defalcation 5 of William M. Price - - . 99 Paht hi. The correctness of the returns which have been made by the present col- lector and naval officer at th( ; port of New York - ". 106 Paut IV Defalcations among receivers of the public money . 142 Ist. Statement of balances due from late land receivers . 143 2d. Correspondence between the Secretary of the i'reasury and K.H.Sterling - 147 3d. Do. do. do. do. J. 'J'. Pollock - 154 4th. Do. do. do. do. Wm. Linn 159 5th. Do. do. do. do. W. P. Harris - 167 6th. Do. do. do. do. G. D. Boyd 184 7th. Do. do. do. do. L. Hawkins 191 8th. Do. do. do. do. U. G. Mitchell - 193 9th. Do. do. do. do. P. Childress 196 10th. Do. do. do. do. M. J. Allen 199 1 1th. Do. do. do. do. .John Spencer 219 12th. Do. do. do. do. J. H. Owen 229 13th. Do. do. do. do. J.W. Stephenson 231 14th. Do. do. do. do. 8. W. Dick.son - 235 15th. Do. do. ' do. do. J. L. Daniel 242 16th. Do. do. do. do. S. W. Beall - 245 Part V. Facts connectexl with the foregoing defalcations, and deemed material to de- velop theii true character - - - - 247 Part VI. Mr. Hopkin.s's special concurrence in the report of the committee 261 Report of the minority of tlie committee - - _ 262. Rep. No. 313. RESOLUTION CREATING THE COMMITTEE. 25th Congress '3d Session. Congress of the United States. Li the House of Representatives, January 17, 1839. Resolved, That the communication from the President of ihe United States, of the Sthof December, 183S, relating to the defalcation of the late collector of the port of New York, except so much as relates to the modi- fication of the revenue laws, be referred to a select committee of nine members, to be appointed by the House, by ballot, whose duty it shall be to inquire into the causes and extent of the late defalcations of the custom- house at New York and other places, the length of time they have ex- isted, the correctness of the returns which have been made by the collect- ors, and naval and other officers, and the deposite banks, respectively ; and all such facts connected with said defalcations as may be deemed ma- terial to develop their true character. Be it further resolved, That said committee be required to inquire into, and make report of, any defalcations among the collectors, receivers, and disbursers of the public money, which may now exist; who are the de- faulters; the amount of defalcations; the length of time they have exist- ed, and the causes which led to them. And that said committee have power to send for persons and papers. The House proceeded to appoint said committee by ballot; and Mr. Harlan, of Kentucky, " Curtis, of New York, " Wise, of Virginia, " Dawson, of Georgia, " Smith, of Maine, *' Hopkins, of Virginia, " Owens, of Georgia, " Foster, of New York, " Wagener, of Pennsylvania, were elected. ADDITIONAL RESOLUTIONS CONCERNING THE COMMITTEE. 25th Congress 3 J Session. Congress of the United States. In the House of Representatives, January 19, 1839. On motion of Mr. Wise, Resolved, That the Select Committee of nine, elected by the House to investigate the late defalcations of public officers, have power to elect a clerk ; to employ a printer to print for its own use its journal and other papers required to be copied for its members ; that the committee have leave to proceed to New York or other places for the purpose of prose- cuting its inquiries; and that the members thereof be excused from at- tendance upon the House until it shall have made its report. Rep. No. 313. REPORT OF THE MAJORITY. PREFATORY REMARKS. The Select Committee chosen by the House of Representatives on the 17th and 19th lUtinjo to investigate the defalcations of Samuel Swart- wout, late collector of customs at the port of New York, and of other of- ficers, have devoted to the faithful discharge of the duties assigned them the limited time allowed for the purpose by the shortness of the present session of Congress. It was most obvious, however, that tlie whole field of inquiry present- ed, by the resolution appointing the conmiittec c ould not be properly trav- ersed to report thereon, either satisfactorily to the country or to the com- mittee, during the short remainder of the present Congress. This im- pressed upon the committee, at once, a resolution, which has been riaidly adhered to, of limiting the investigation to such branches of the subjects referred to them as had most deeply excited public anxiety and alarm, and to undertake only so much of these as might be thoroughly exhaust- ed within the allotted period of the committee's researches. But, the im- portant results which have been attained, notwithstanding the disadvan- tages adverted to, cannot fail to inspire the country with a confident hope that the high obligation which will rest upon the successors of tlie present Congress in the legislative councils of the nation to resume and complete the great work of investigation and reform of the alarming condition and abuses of the Executive Departments of the Government, from the high- est to the lowest, and from the nearest to the remotest functionaries, will secure the prompt and efficient attention which its magnitude demands. Guided solely by the character of the developments which the investi- gation imposed upon them by the House has elicited, the conuiiittee can- not resist the conviction, that at no period in the history of the Federal Government has there been deeper or better founded cause than exists at the present moment for every patriot heart to desire a prompt consumma- tion of that signal '■^ task of reform''^ which public seniimoit, Tnuny years since, iyisci^ibed on the list of Executive duties in characters too legible to be overlooked, vcqnirlng, <• particularly, the correction of those abuses that have brought the patronage of the Federal Government into conflict v/ith the freedom of elections, and the couyiteraction of those causes ichich have disturbed the rightful course of appointment, and have placed or continued power in unfaithful or incompetent HANDS."* The first procedure of the committee, after organizing itself for busi- ness, was, to visit the city of New York, to inspect there, in person, the original records and papers of the custom house, in conjunction with the examination of such witnesses as might be supposed capable of shedding light upon the inquiry involved by the defalcations of Mr. Swartwout Thenceforward, tliis branch of the investigation was conducted pursuant to the resolution of the House, viz : to ascertain "the causes and extent' * Inaugural Address of President Jackson, March 4, 1829. Rep. No. 313. 5 of those defalcations; "the length of time they have existed;" "the cor- rectness of the returns which have been made by" Mr. Swartwout, and by the naval oflicer at New York, and by other olficers connected with the adjustment of liis accounts. Concurrently with the investigation of Mr. Swartwoui's defiilcations, those of WilHam M. Price, late district attorney in New York, were like- wise kept in view; and the fullest practicable extent of inlornjation re- specting them has been obtained, and will be adverted to in the sequel of this report. " Tlie correctness of the returns which have been made" by the present collector of customs and the naval officer, respectively, at the port of New Y(jrk, was also sought to be examined by the conunittee while in that city. Coiisidering that " the customs collected at New York equal nearly two- thirds of the whole amount in all the United States," as stated in the special report of the Secretary of the Treasury on Mr. Swartwout's de- falcations, (House Doc. 13, page 6, of the present session,) the committee did not suppose that they sliould faithfully discharge their duty to the House, or pay a proper deference to that patriotic distrust which pervades the country at the present time in regard to the affairs of the custom-house at New York, were they to limit their inquiries to the leturiis of the late collector and naval officer, and neglect entirely those of their successors, which must, at all times, be to the country of equal interest with the for- mer, and, at the present time, of even more immediate importance to the security of the national Treasury. But, in the execution of so much of this part of their inquiries as related to the present collector at New York, they were compelled to encoimter most unexpected obstacles, interposed by the collector himself, and setting at defiance the authority delegated to the committee by the House. The facts connected with the baffled endeavors of the committee to obtain mformation for the House and coun- try from this officer of the Executive branch of the Government, who is in inmiediate charge of and control over public moneys that " cqxuil nearly two third fi ( if the ivhole anioiint''^ collected from customs '■'■in all the United S'ta/es,"" will be more specially detailed in a subsequent por- tion of this report. The committee will remark here, that, in the outset of the investigation tliey have made, they supposed it both })roper and safe to place themselves somewhat confidingly under the guidance of the several .special reports which had been made to the House upon the subject of Mr. Swartwout's defalcations, by the Treasury officers, previous to the a])pointment of the committee — combining, m this view, reports from the Secretary of the Treasury, the First Comptroller, the Solicitor, and First Auditor of the Treasury, as exhibited in House document 13. It, however, very soon became evident that those reports were not to be implicitly relied on as auxiliaries in finding out either the law or tiie facts of the case ; and that, on the contrary, they furnished but an oblique view of both the causes and duration of Mr. Swartwout's defalcations, as also of the law and many material facts which develop the true character of those defalcations. Of necessity, therefore, these reports, although emanating from the high- est orders of official functionaries employed in the collection and disburse- ment of the public revenues, became tlie subjects of as cautious and criti- cal examination as any other poruons of evidence which the case jiresented; and, as such, it will be obligatory upon the committee to treat them in this report. 6 Rep. No. 313. In reviewing the details of their labors, so that the progress and results of them may be presented in the simplest form, the committee propose to consider — Part I. The defalcations of Mr. Swartwout. Part II. The defalcations of Mr. Price. Part III. The correctness of the returns which have been made by the present collector and naval officer at the port of New York, respect- ively. Part IV. Defalcations among receivers of the public money. Part V. Facts connected with the foregoing detalcations, and deem- ed material to develop their true character. Each of the divisions thus proposed will properly involve the law ap- pertaining to it, as the appropriate adjunct of its facts. And as the lan- guage of the law itself will in each instance be cited in detail, that its authority and injunction may be correctly understood by every one, so the language of the individual testimony relied on in each instance will be adduced, that its import and force may be left neither to uncertain construction nor doubtful inference. The increased fidelity of their report, in the estimation of the committee, will be, by this mode, an ample offset to its consequent enlargement. Before proceeding to the general topics of this report, as already laid down, it may be proper here to express the deep sense of disappointment and regret of the committee, in not being able to comnnniicate to the House one document that was called for at an early day, regarded as having an important and interesting influence upon the judgment which the House might form on the subject of defalcations among public offi- cers, and the causes which have led to their multiplication. It will be perceived from the following letter, that the committee availed itself of the earliest period after their organization, to make a call upon the Presi- dent to furnish a list of the defalcations that have taken place among col- lectors, receivers, and disbursers of public money, and other public officers, since the 4th of March, 1829, showing the amount of each, &c. More than four weeks have now elapsed since that call was made upon the President, and the only information which the committee have obtained to report upon to the House is embraced in the following letter, the distin- guishing feature of which information is, that still more time than even the whole remainder of the session will be requisite to answer the call. From this the committee are compelled, reluctantly, to infer, either — 1st. That the accounts and records of the several Departments, in gen- eral, are so incomplete and defective as not to exhibit, without great labor and delay, the true relations of collectors, receivers, and disbursers of the public money, and of other officers, to the Government, so as to distin- guish debtors from defaulters, and creditors from both; or, 2dly. That the number of the defaulters have multiplied so rapidly since 1829, under the system of accounta])ility pursued towards collectors, re- ceivers, and disbursers of the public money, and other officers, as to pre- clude the practicability of securing an account current of their defalca- tions upon the records of the Departments, with all the clerical force at the command of those Departments under existing laws and appropriations. If either inference be just, (and none other of equal weight seems to be fairly deducible from the letter of the Secretary of the Treasury,) it mani- fests a general laxity of administration, which demands the earliest appli- Kcji. No. 313. 7 cation of suitable remedies within the reach of Congress and of the country. For papers Nos. 1 and 2, referred to in the subjoined letter, reference is respectfully made to the Journal of the Committee. Treasury Department, February 18, 1839. Sir: The President, aon the 23d ultimo, referred to this Department the following resolution passed by the Investigating Committee : " Resolved, That the President of the United States be requested to cause this committee to be furnished by the proper Executive Department with a table showing the defalcations which have occurred among the collectors, receivers, and disbursers of public money, and other public officers, since the 4th day of March, 1S29; the names of the defaulters j (he amount of each defalcation ; when each ca^e occurred ; the length of time each case has existed ; what steps have been taken by the proper de- partments or officers to prosecute the defaulters and to secure the United Stales, in each case ; and what defaulters are retained in the same offices in which they became defaulters, or have been appointed to other offices." He accompanied it by a request that all the information desired should be procured early as practicable, and submitted by me to the committee. Accordingly, on the same day, I enclosed copies of it to the other Depart- ments, and also to the proper bureaus in the Treasury Department, and desired that replies might be furnished, so far as in their power, and soon as in their power, to the several inquiries made. I further requested the bureaus connected with this Department to employ any extra assist- ance that could be advantageously applied in hastening their answers. I would now inform the committee that great progress has been made in respect to those })arts of the answers comiected with the Register's office, and all which could be made, consistent with the difficulty and extent of the labor, in the Third Auditor's office. But it is feared tliat, on account of this labor, and the great mass of previous calls by com- mittees and by the two Houses of Congress, which are also to be answered, besides transacting the current business in the different bureaus, the whole details and the tabular statement required cannot be completed during the session. Every effort, however, which, under all the ciicumstances, can be made, is believed to be exerted to meet the call at the 'earliest day practicable. In respect to the last branch of the resolution, asking "what defaulters are retained in the same offices in -which they became defaulters, or have been appointed to other offices," I am able to present the report of the Register, from his office, which exhibits such names as are on his books connected with the State and Treasury Departments. It is annexed, and contains no name as to this, and but one as to the State Department. That one is Commodore D. Porter; and by the correspondence annexed, it will be seen that he does not consider himself a defaulter, though he stands charged on the Register's books for a considerable sum on account of prize money, as explained in the papers (Nos. 1 and 2.) Respectfully, LEVI WOODBURY, Hon. James Harlan, Secretary of the Treasury. Chairman of Investigating Committee. 8 Rep. No. 313. Referring to the order heretofore proposed, the committee will now proceed to consider — PART I. THE DEFALCATIONS OF MR. SWARTWOUT. This branch of t]ie report divides itself with reference to — 1st. Their extent. 2d. Their duration. 3d. Their causes. 1. THE EXTENT OF MR. S\V AUTWOUt's DEFALCATIONS. There seems to be no cause to doubt the correctness of the reports of the Treasury officers, as to the extent of Mr. Swartwout's defulcations, viz : (S 1,225,705 69,) one niillinn two hundred and twenty -five thousand seven hundred and five dollars and sixty -nine cents. At any rate, tiitnigh the aggregate may he varied by further adjustments, this is no more nor less than the indtibtedness which his own books of accounts exhil)it against him ; and, what is of no less importance than it may be matter of surprise to the liouse and country to understand, this indebtedness of Mr. Swart- wout to the Government, now constituting the measure of his defalcations, great and alarming as it is, is no more nor less than has been shown and permitted openly to grow upon the face of his official quarterly returns, made with periodical regularity to, and f )r the investigation of, the ac- counting officers of the Trt^asnry Department. On the accounts of xMr. Swartwout to the end of the last quarter pre- ceding his leaving the office of collector, viz : up to December 31, 1S37, no difference whatever, not to tiie auiount of a dollar, has arisen between him and the accounting otRcers of the Treasury. In regard to all trans- actiuns up to that period, all his charges against the Government have been found just and ftllowed ; and, on the other hand, he has not been found chargeable with any sum whatever, which he liad omitted to charge against himself There being, moreover, no dispute or omi-ssion of items in his subse- quent and last quarter's accounts, up to March 28, 1838, it follows that no part of the large defalcation already stated is dijrived by either trav- illing out of his own books of official accounts, or going behind the actu- x\ balance returned by himself and adjusted by the Treasury Department jp to Decem!)er, 1837. To these points, tlie testimony of Mr. Fleminf;, auditor of the customs under both the late and present collector at New York, is explicit, eis bllows : Examined by Mr. Smith. Question 113. What is the aggregate difference between Mr. Swart- vout's accounts, down to the end of the fourth quarter of 1837, as re- irned by him to the Tre sury D(!partmont, and the amount which has ibsequently been allowed to him on tiiose accounts by the Treasury epartment ? Rep. No. 313. 9 Answer. I think the Treasury Department have allowed all the charges*-v ■made by Mr. Swartwout to the above time, and that no difference exists in such account with the Treasury Department. Question 114. Has the Treasury Department, in adjusting Mr. Swart- wout 's accounts to the end of the year 1S37, charged said Swartwout with any sum which he had omitted in his own accounts, rendered up to said period ? Answer. They have not. Question 115. Is or is not the balance now claimed to be due by the Treasury Department from Swartwout, according to Ho. doc. 13, and amounting to $1,225,705 69, derived wholly from the balance found due on his accounts, ending December 31, 1S37, as settled by the Treasury Department, and from the balance of his succeeding quarter of official operations combined? Answer. It is. (See journal of the committee.) John Underivood, ^.y^'., examining clerk in the office of the First Audi- tor of the Treasury, and the confidential clerk delegated by the Secretary of the Treasury to visit New York and inspect the custom-house books, in conjunction- with the First Comptroller and Solicitor of the Treasury, in November last, thus bears testimony to the same facts: Examined by Mr. Curtis. Question 3- Has Mr. Swartwout, in any instance, omitted to debit him- self, and credit the United States in his quarterly accounts, with any amount which ought to have been thus entered by him, in order to show the true balance due from Mr. Swartwout? Answer. I do not know that he has. Questio'i4. Upon the quarterly accounts rendered by Mr. Swartwout, would not an examination of them, ancUa striking of the balance, have shown the true amount due from Mr. Swartwout at any time? Answer. It would ; for, altiiough the particular items of the balance might, from circumstances, differ from tlie true amount of each, yet the aggregate balance would be a true one. And this will always hold good, miless a part of the duties secured by and chargeable to the collector had been suppressed by him. That this has been done by the late collector ni New York, I know not. Question 5. Have you, in your investigation of Mr. Swartwout's ac- counts, or has 'the Treasury Department, to your knowledge, ascertained any, and what, sum which ought to have been, but which was not, cred- ited to the United States by Mr. Swartwout, and charged to himself,, either under its specific and appropriate head, or under the head of cash and bonds? Answer. I do not know of any such omission in his quarterly accounts, which are the accounts received at the oiUce of the First Auditor. Question 7. Did or did not the charges against Mr. Swartwout at the Treasury, and the debit side of his own account, as rend^^red by himself to the Treasury, include the whole amount of the various items which make up his defalcations, as set forth in the letter of Mr. Gilpin and Mr. Barker, addressed to the Secretary of the Treasury, dated 15th Novem- ber, 1838, being paper 15,dociunent 13, H. R. 3d session 25th Congress? Ansiver. They did. 2 10 Rep. No. 313. Question 9. Could you not, from Mr. Swartwout's accounts rendered at the Treasury Departmentj ascertain the balance due from JNIr. Swart- wout, without a resort to the New York custom-house books ? ^^iiswer. If the accounts for the' first quarter of 1S3S — that is, the clo- sing period of his term — had been forwarded to the Treasury, the true balance due from him could have been ascertained there. These ac- counts, however, were retained* at the custom-house until they were sent on, at my instance, to the Treasury, at the same time 1 returned to Wash- ington, in November, 1838. Question 13. Did you, in your examination into the origin and prog- ress of Mr. Swartwout's defalcation, find any new items which ought to have been debited to Swart wout and credited to the United States, in his quarterly accounts, and which had not been so entered? Ansiver. I did not. From the preceding testimony the committee report, as established facts : 1st. That Mr. Swartwout is a defaulter to Government, as appears by his own returns, as adjusted from time to time at the Treasury De- partment, in the sum of one million two hundred and twenty-five thou- sand seven hundred and five dollars and sixty-nine cents. 2dly, 'I'hat this amount of indebtedness has accumulated upon the face of the quarterly accounts regularly returned by him for adjustment at the Treasury Department, ^vithout the omission of any items of either debit or credit thereon, until it became an absolute defalcation. 8. THE DURATION OF MR. SWARTWOUt's DKFALCATIONS. The Treasury officers unite in representing Mr. Swartwout's defalca- tions as commencing as fai back as in 1830. The Secretary of the Treas- ury sums up his own examination on this point, and also the statements of the First Comptroller, First Auditor, and Solicitor of the Treasury, thus: "The first misuse of the public money by Mr. Swartwout, as col- lector, appears to have commenced in 1S30. A series of defalcations, in various items of his accounts, seem to have followed, and continued through each successive year, increasing constantly in amount, till near the close of his official term." (See rep., H. doc. 13, p. 4.) This would indicate that they have been of a character to elude the vigilance of the accounting officers of the Treasury for a series of years, and extending back of the period when the present Secretary of the Treasury, the pres- ent First Comptroller, the ])resent First Auditor, and the present Solicitor of the Treasury, respectively came into office. But the committee do not concur in this view of the matter ; nor do they find the facts to warrant the impress of any such early date upon Mr. Swartwout's defalcations. So far as Mr. Swartwout's interests or reputation are to be affected, it matters not whether any portion of his 'defalcations be traced back to 1830, or only to 1837; because such a ({uestion, respecting dates, is not pretended in any way to alter the aggregate amount. He is equally a defaulter in tlie sum of ^1,225,705 (39, whether he is to bo adjudged a defaulter from theearher, or only from the later period mentioned. Nevertheless, the instruction of the House to the committee, in the resolution of appointment, has required, for obviously sound reasons, that t'^e true dates or precise duration of Mr. Swartwout's defalcations be Rep. No. 313. ^ 11 investigated; and lience tlie obligation rests upon the committee lopres^nt the facts truly as they have been found ou investigation. To comprehend the process by which the Treasury oflicers assume to carry the date of any portion of Mr. Swartwout's defalcation anterior to 1837, it is necessary to ])ay attention to the system of book-keeping that has existed in the custom-house at New York since the year 1799, (See committee's journal, answer 6 of Mr. Shultz.) There are numerous subordinate accounts kept in the custom-house at New York, by way of making distinct exhibits of the expenditures made upon distinct objects. The effect is to simplify and systematize the divis- ions of labor and of responsibility into which the great aggregate of busi- ness at the custom-hou-e naturally and necessarily resolves itself Oa these separate accounts, expenditures made by the collector are charged to the Government, and are balanced only when tiie same charges are trans- ferred to the quarterly account of the collector, upon which he settles all his financial operations for the Government at the Treasury, unless he acts under some special appropriation made by Congress, and then he renders a separate account. But as no charge in the quarterly account is allowed until accompanied by a voucher, no items are carried, specifi- cally or by name, from the subordinate accounts of the collector thus kept at the custom-house, to his quarterly account returned to the Treasury, until the requisite vouchers have been obtained, and he is prepared to settle such items finally. When any items are thus settled, they pass out of both the subordinate and the quarterly accounts, in order to indem- nify himself in his quarter-yearly settlements at the Treasury (required by law) for the amounts, or unsatisfied balances of charges against the Gov- ernment exhibited by these numerous subordinate accounts; and until he obtains vouchers to settle them finally, his course was, and must of need be, to add them together, and carry them, in one aggregate, into his quar- terly account, under the general designation oi '■'■ amount of unsettled ac- counts,''^ or '■^amount nf unset tied and suspense accounts.^^ This, however, is not done in the nature of a charge, but as a part of a recapitulatory ex- planation that is contained in every quarterly return of accounts, by way of indicating wliat amount of actual ofi'sets he has to the balance stated against him, and also what has become of the money he has received to constitute such balance. If, with such an explanation, the accounting of- ficer sees fit to admit the account to settlement, the balance is passed to his account for the next quarter, and so on. It should be remembered here, that, of the subordinate accounts thua kept for the convenience and better management of the internal affairs of the custom-house, nothing is officially known to, or recognised by, the ac- counting officers of tlie Treasury Department. 'I'hey are not the offspring of any Treasury regulation, but are the arbitrary institutions of the col- lector. It is from these that he makes up his quarterly account current; but such quarterly account is the one returned to the First Auditor of tlie Treasury, and is the or)ly one of final adjustment that is required, or re- cognised, by the accounting officers of the Treasury. With this explanation, it is manifest that the item of unsettled or su9- pense accounts of the collector, in his quarterly return, only represents sundry classes of items which appertain to his quarterly account ; they are not dependent upon, or the growth of, distinct and separate fundi from those which enter generally into his quarterly account. Hence, tt 12 Rep. No. 313. separate one of tliese subordinate accounts, or classes of items, in regard to which a balance may be standing against the collector, from the remain- der of such subordinate accounts, or classes of items, in regard to which a much larger balance is standing in his favor, and to pronounce him a defaulter to the Government on the former balance, because the other balance in his favor is susceptible of being absorbed by bringing it into an olfset to the whole remainder of items of which the collector's quarterly account is composed, cannot be regarded by the committee as a fair and just representation of the collector's accounts, or of his defalcation. But such is the process by which the Treasury officers, Secretary, Comp- troller, Auditor, and Solicitor, have made Mr. Swartwout guilty of *' a series of defalcations," continued through successive years, since 1830, and prior to 1S37. The committee conceive that there is a propriety in either taking the whole. of the items or subdivisions of Mr. Swartwout's suspense account Sogether, and striking a balance tlierefrom at the end of each successive quarter of his term, or in taking each of its subdivisions apart from all the yest, and striking the balance on each at the end of each successive quarter ©f his term ; ofi'setting thereafter the one by the other, to resolve them into one final balance. By either process, it will appear that at the end of no quarter since 1835, has the true balance of these suspense accounts ever lieen otherwise than has been returned by Mr. Swartwout hi his quarter- ly accounts to the Treasury; and that at the end of no quarter has it been otherwise than a balance largelij in favor of Mr. Swartivout. It is ob- Tiously most easy, by selecting portions of these subordinate accounts, and separating them from the remainder, to exhibit a balance against him at any date that may be desirable, since the commencement of his ac- counts. But such a procedure is not to be justified upon any principle of Ihonorable dealing. Nor is the character or dates of Mr. Swartwout's defalcations at all altered by the fact, that to one subdivision of his subordinate and sus- pense accounts, he credited the Government, or charged himself with moneys from his cash account, or from the Treasury, which should have lieen thus credited or charged to a diti'erent subdivision ; for thereby the true balance of those accounts resolved quarterly into one aggregate, and, as carried into each quarterly account to tlie Treasury, under the general designation heretofore described, and into the only account known to the Treasury, was in no 4t^g'"ee lessened, enlarged, or affected. If it were true that the collector had been recjuired to make separate settlements at the Treasury on these subordinate accounts, or subdivisions of his quarterly account, then, an erroneous credit of moneys to one subdivision would proportionably aifect the other from which it had been thus divert- ed. Such, however, not being the mode of settlement known to the Treasury, or required of Mr. Swartwout, no confusion of debits ox credits, however great it might be, in the subordinate accounts of the collector at '.he custom-house, could furnish ground of reproach upon the collector'^ quarterly account current at the Treasury Department, where nothing is required, cared, or Icnown about his subordinate accounts. All the items charged upon Mr. Swartwout as defalcations, dating an- iiiiior to 1837, are found by the committee to have been entered in the proper quarters of Mr. Swartwout's subordinate accounts at the custora- iiousc, to which they appertained, and carried from theni; at the proper Kep. No. 313. 15 time, to his quarterly account rendered at the Treasury Department; forming, at all times, a component part of the aggregate balance exhibit- ed against liimsclf Tliey cotisist of— .1st. "Tonnage duties," $2,211 39, minus g488 1.5; 2d. " Forfeitures and penalties," ^539,823 12; 3d. " Treasury warrants," ^39,240 05 ; 4th. " Ottice expenses," i^60,291 42 ; oth. " Cash retained for refunding merchants," SS0,769 53: total gl21,907 36. Their iiistory will be considered in the order of this enumeration. 1. *' TONNAGE DUTIES." It is quite apparent that the Solicitor and Comptroller of the Treasm'y^ in their examination of Mr. Swartwout's books at New York, in Novem- ber last, well-nigh persuaded themselves that tliis item did not amount to a defalcation, or even just charge upon Mr. Swart wont, although charged to himself in his accounts. In their joint report to the Secretary of the Treasury, (Ho. Doc. 13, p. 25,) they say: " It men/ be that this deficit has arisen from errors which have crept into the account during the five years through which it extends. The amount is so small as to give color i& this supposition." The examination of Mr. Fleming, auditor of the customs under botk the late and present collector, was as folloM^s, upon this item : Examined by Mr. Smith. Question 84. Mr. Swartwout has been represented as a defaulter obl his accounts to the amount of y^2,271 39, for " tonnage duty," accruing in the years of 1830, '31, '32, and '33, and which sum has not been deb- ited in his cash accounts. Do you or do you not bt^licve, from the ex- amination you have made of said accounts, that said amount is not prop- erly chargeable to Mr. Swartwout as a defalcation, but should have been set down as error, from which no money was realized by him ? ..Answer. I believe that said amount was purely an error. A vessel may have been subject to tonnage duty, and yet, from inadvertence, it may not have been collected at the custom-house ; and when the tonnage account was made up for the Treasury, the omission may have been dis- covered ; consequently, the collector would credit the United States for the money, and rely upon collecting it afterwards, and yet never realize it Mr. Nathaniel Shultz, the predecessor of Mr. Fleming in the auditor's office of the custom-house down to July, 1836, was subsequently called, and the following examination was had of him on the same point : Examined by Mr. Curtis. Question 83. Will you examine the statement presented by Mr. Gilpin and Mr. Barker in their letter of the 15th November, 1838, (paper 15 in Doc. 13,) and sny whether their statement of Mr. Swartwout's defal- cation prior to (July, 1836,) the time you left the custom-house, be cor- rect or not ; and if incorrect, point out wherein ? 14 Rep. No. 313. jinsiver. In respect to all that is said about tonnage duties, \he\x state-* ment is erroneous. INlr. Swartwout regularly entered all the tonnage duties and money 'received therefor, upon his cash book, and other books, and accounted regularly for the same in his quarterly and other returns. I am certain of this, and I show yon noic, in tiie book before the committee, the cash book, and other books, that they were so entered and accounted for at the proper times^ It is not right to say Mr. Swart- wout is a defaulter for any of these items of tonnage duties ; and I main- tain and sliow, by the books and returns, that they have been regularly accounted for to the United States. 2. '' FORFEITURES AND PENALTIES." The item of " forfeitures and penalties," now charged as a defalcation, is thus stated by the Solicitor and Comptroller in their joint report, before named, p. 25: '* The 'forfeitures and penalties' belonging to the United States consti- tute the second fund,* in which there is a deficit. It amounts, in the aggregate, to ^39,823 12. Of this, there occurred — In the year 1S32, the sum of - - - ^29,632 46; In the year 1833, the sum of - - - 3,674 04; In the year 1834, the sum of - - - 1,173 09; In the year 1835, the sum of - - 5,343 53; .823 12." Of this item, the examination of Mr. Fleming was as follows : Examined by Mr. Smith. Question 85. In House Doc. 13, before named, the Solicitor of the Treasury reports Mr. Swartwout as a defaulter, in the sum of ^39,823 12, for "forfeitures and penalties" received by him during the years 1832, '33, '34, and '35, and not debited in his cash account. Please to examine the original of Mr. Swartwout's quarterly returns in the custom-house book, now before you, and state if the several receipts of money by Swartwout, amounting to said aggregate sum, are not specifically en- tered in his quarterly returns, to the Treasury Department, and in the order of their receipt, under the plain designation o{ '•^ a 772 ov.nt of fo7fieit- ures received, per abstract " ? If yea, please to copy such entries, verbatim, as you find them on the original of Swartwout's returns, des- ignating the quarter of each year in which they are found. Ansioer. There are several receipts of money specifically entered in Mr. Swartwout's quarterly accounts current, and are as follows : .2d quarter 1832, " By amount of forfeitures received, per abstract G" - - - - §2,200 33 3d quarter 1832, " By amount of forfeitures received, per abstract G" - - - - 1,946 61 * The reader should hoar in mind that tlic diflV-rent sources of puhlic moneys received by a eollector do not (create disthict funds in his hands, and are not known as such hy any Treasury regulation. They all resolve themselves, as fast as collected, into one fund ; are accounted for by the collector in one return ; and are drawn upon, or passed to the credit of the Treasury, as one ma-ss. Rep. No. 313. 15 4th quarter 1S32, " By amount of forfeitures received this quarter, per abstract G" - -^25,107 92 1st quarter 1833, " By amount of forfeitures received this quarter, per abstract J" - - 374 35 2d quarter 1833, '' By amount of forfeitures received this quarter, per abstract H" - - 1,612 64 4th quarter 1833, " By amount of forfeitures received this quarter, per abstract J" - - 1,687 05 3d quarter 1834, " By amount of forfeitures received this quarter, per abstract H" - - 299 55 4th quarter 1834, " By amount of forfeitures and penahies, per abstract J" - - - 1,080 37 4th quarter 1S35, " By amount of .forfeitures received, per abstract J" - - - - 5,342 53 !9,651 35 The aggregate of the above varies somewhat from the aggregate con- tained in the interrogatory ; but in its details it is essentiahy the same. Question 86. Have the alphabetically-marked abstracts, referred to in the above entries of Swart wont's quarterly accounts current, as specified in your last answer, been invariably sent to the Treasury Department, with explanatory vouchers, and in company with said quarterly accounts; and are similar vouchers and abstracts sent in explanation of every other item of credit contained in the collector's quarterly returns ? *-^nswer. To the wiiole of the interrogatory I answer, yes. Examined by Mr. Wise. Question 90. Were not the "forfeitures" which Mr. Swartwout re- ceived, all credited to Government in his quarterly accounts current; and were they not carried forward regularly in the balances due Government on said accounts ? ^^nsiver. They were. The examination of Mr. Shultz on this point was as follows: Examined by Mr. Curtis. Question 1. Were you formerly auditor of the custom-house at New York ? If yea, how long did you perform the duties of that station, and when did you retire from it ? Ans7ver. I was formerly auditor. I think I was about thirty-seven years auditor at the custom-house in New York. I retired on the 1st of July, 1S36, having been thirty-eight years and four mouths in the cus- tom-house. Question 4. Did the accounts rendered by you, as auditor of the cus- tom-house, to tiie Treasury Department, truly set forth the state of the accounts between Swartwout and the United States? Jinsioer. Tlie accounts of Mr. Swartwout were correct up to the 31st of March, 1S36, with the exreption of the forfeitures as already stated, as far as my knowledge extended. ^2,200 33 1,946 61 25,107 92 374 35 1,612 64 1,687 05 299 55 • 1,080 37 725 02 5,342 53 ^40,376 37 16 Rep. ISo. 313. Question 5. What reason have you to say they were correct ? What means of knowledge had you? Aiistuei'. The accounts underwent a critical examination by me; so that if there was an error of one cent, I had the means of discovering it by proving the accounts. Question 7. Can you inform the committee when these forfeitures, to the amount of {§40,000, were paid over by the marshal to Mr. Swart- wout? Answer. They were paid by the marshal to him as follows: 2d qnarter, 1S32 - - - - - 3d quarter, 1832 ----- 4th quarter, 1832 - - . - . 1st quarter, 1833 ---*-_ 2d quarter, 1833 - - - - - 4th quarter, 1833- 3d quarter, 1834 ----- 4th quarter, 1834- 3d quarter, 1835 - - - . - 4th quarter, 1835- Mr. Swartwout gave to me regularly the acf'ounts relating to those forft itures; they were by me examined and regularly passed to the credit of the United States in the account current for the quarters as they are above stated, and as they were returned to the Treasury. A few of the- above items were paid to the cashier of the custom-house, and about ^40,000 were outstanding or unpaid on the 31st of March, 1836. In answer 13, Mr. Shultz says : " The next item is 'forfeitures and penalties,' amounting to ^39,823 12; the amount of this item, I have already shown the conmiittee, by the books, the ' cash book,' the ' book of general accounts,' ' account current book,' (from which last book the quarterly accounts are copied and sent to the Treasury Departmenf,) was regularly credited to the United States. But Mr. Swartwout retained a large portion of th.is amount in his hands; and the weekly returns showed that he retained this money at the time, because they did not acknowledge the receipt of it. His accounts for- warded to Washington sliowed that he owed this money to the United States." Excnnined hy Mr. Foster. Question 20. You have stated in your answer to the seventh question by Mr. Curtis, that the amount received in the fourth quarter of 1832 by Mr. Swartwout, for forfeit tues belonging to the United States, was $25y\01 92. Now, will you state how that sum was credited to the Government? Answer. It was credited in his quarterly return for that quarter, as fol- lows : "By amount of forfeitures received this quarter, per abstract G,.'* ig25,107 92. Eep.. No. 313. 1^ 3, " TREASUIIY WARRANTS." In relation to this item, the examination of Mr. Fleming was as follows r^ Examined by M?\ Smifh. Question 22. In the joint report of the Comptroller and Solicitor of the Treasury to the Secretary of the Treasury, contained in House document 13, 3d session 25th Congress, page 26, in relation to i/iree Treasury ivur- rants received by Mr. Swartwoul, amounting to .^39,240 05, it is said : " Their receipt appears by his books, but the proceeds have never been debited in his cash account ; and thtiir wliole amount stiU remains entirely ^unaccounted for," Is it, or is it not, true that said Treasury Warrants are accounted for on Mr. Swartwout's books at the custom-house, and form a portion of the aggregate balance due from him to the Government ? Answer. It is true that these warrants are accounted for on Mr. Swart- wout's books, and that they form a part of the balance due the United States, and have been carried forward, in the aggregate balance of each quarter, down to the close of his term of office. Examined by Mr. Oivens. Question 56. Refer to your answer to the 22d question, propounded by-. Mr. Smith, and say whether tlie warrants alluded to were accounted for by Swartwout, except so far as they form part of the balance due to the United States, and whether he stands debited with the amount in his cash account ? Answer. For the warrants alluded to, Mr. Swartwout never entered the amounts to his debit in his own cash account ; and they were therefore held in suspense, although they continually formed part of the outstanding balance due to the United States. In answer 13, (examined by Mr. Curtis,) Mr. Shultz says, alluding to the Solicitor and Comptroller's report. House document 13 : "The state- ment of Messrs. Gilpin and Barker, in regard to these items, is wholly in- correct. These warrants were, to my knowledge, applied to the purposes for which they were received, and regularly accounted for. I have shown you that they were regularly entered in the 'cash book,' and in the book called 'collector's book of official accounts,' which contains the 'accounts of expenses of his office, and emoluments and fees.' I lay before the com- mittee the last-mentioned book, and show the application of each of the said warrants. A quarterly and annual account, returned to the Treasury Department at the proper time, contain a full explanation of these items." The same witness was subsequently examined (by Mr. Ciu'tis) as fol- lows : Question 15. Can you give a statement copied from the " book of fees and emoluments," to show the application of the three Treasury warrants ? Answer. In answer to the 13th interrogatory, I yesterday showed the book to the committee, and proved tliatthe proceeds of the three Treasury warrants issued in 1S34 and 1S35 were applied actually to the payment of the clerks for the year 1834. The markers, gangers, weighers, measurers, inspectors, &c , and all offi- cers except clerks, are appointed by the Secretary of the Treasury, are re- 18 Bcp. No. 313. garded as public officers, and are paid out of the public money, which is charged in the account of the collector with the tJnited States quarterly. The fees and commissions of the collector are appropriated to pay the •clerks, and an account of the fees and commissions is kept ; and if they fall short of a sufficient sum to pay the clerks. Hie Treasury Department sends on warrant upon the Treasurer to make up the sum sufficient to pay the clerks. There was a deficiencv of fees and emoluments to pay the clerks in 1834. The three warrants, amounting to S39,240 05, before mentioned, were received for that purpose. I have made a copy of the account referred to in the answer to the 13th interrogatory, and it shows that the proceeds of those three warrants were applied to pay the clerks. The account is a, true copy, and is marked B. Copies of these accounts, quarterly and annual, with the vouchers, were forwarded to the Treasury Department. 4. " OFFICK EXPENSES." In relation to this item, Mr. Flemin,s;^s examination was as follows : Examined by Mr. Smith. Qiiestio7i 98. On page 26 of House document 13, in the report of the /Solicitor and Comptroller of the Treasury, Mr. Swartwout is charged with i860,291 42, alleged to have been drawn by him for expenses of his office, beyond the actual amount of those expenses, during the years 1835, 1836, and 1837, and that in said sum he is a defaulter to the Government. Please to state whether each of the sums received by Mr. Swartwout, making up said aggregate of expenses overdrawn, was not carried into and made a component part of the balance of the quarterly accounts re- turned to the Treasury Department. Answer. They were. - Mr. Phillips, cashier of the custom-house under Mr. Swartwout, testi- fied as follows : Examined by Mr. Smith. Question 42. Please to examine pages 26, 43, and 44, in before-named House document 1 3, and say whether you furnished the Solicitor of the Treasury, or Mr. Underwood, clerk in the otfice of the Auditor of the Treasury, with any information relative to any of the defalcations amount- ing to ^60,291 42, there charged upon Mr. Swartwout under the head of " cash drawn to jjay expenses of office, more than ammtnt of same, not debited in cash account;'''' or do you know, or have you ever known, of any such defalcation ? Answer. I have no knowledge of the statement in page 26, document 13, of "cash withdrawn for the alleged purpose of paying expenses of the -office," &c., amoimting to $60,291 42, nor of similar statements on pages 43 and 44, and I do not know, or ever have known, any such defalcation. 5. " CASH RETAINED FOR REFUNDING MERCHANTS." This item of ^80,769 53, since first set apart by Mr. Swartwout, has never ceased to be reported to the Treasury Department in jiis quarterly accounts, as a part of his aggregate balance of cash and unsettled accounts. When originally retained, it was expressly reported in his weekly return Rep. No. 313. 19 to the Secretary, " Mardi 26, 1836," as follows: " Returned, fur refund- ing to merchants, SSO,769 53.^^ (See extracts from custom-house books in Mr. Fleming's testimony, Com. Jour.) And in his succeeding weekly lelurn, dated March .'31, 1836, he reported, for that \veek,ascash received, )ig64,905 49, (see same testimony;) and in his quarterly return, ending on the same date, March 31, 1836, he reported as follows: " Cash retained the 31.s7 March, 1836, J&145,675 02." (See continuation of same testi- mony. Committee's Journal.) Thus expressly comlnning the cash of those two weeks into his cash and suspense account, with the knowledge of the Treasury Department. Moreover, Mr. Fleming says, in his 75th answer to Mr. Smith, (Com. Jour.,) that this sum was retained by Mr. Swart wout ^' ivith the knowledge of the Treasury.^' It always constitu- ted, thereafter, a component part of Mr. Swartwout's quarterly balance re- ported by himself to the Treasury; and on this 3fr. Fleming was interro- gated by Mr. Smith, and answered as follows : Question 15. Could "the large sum of ^^80,769 53," described in your last answer, retained by Swartwout in 1836, have become a defalcation if the Treasury Department had not lost sight of it in the examination of his accounts, inasmuch as you say in your last answer that it was retained ** with the knowledge of the Treasury?" Jinswer. It could not. With such evidence before them, the committee do not feel justified in sustaining or acceding to the correctness of the view presented to the House and country by tlie Executive and the Treasury officers, in House document 13, that Mr. Swartwout became a defaulter at any time prior to 1S37 on either of the items of account above enumerated — amounting in all to §22 1,907 36. On the contrary, he accounted for them properly to the Treasury, but was permitted to retain them until his last quarter of service ; and then, and not imtil then, was he required to pay them ; and then did he become a defaulter for them, and not before. There has not been discovered any evidence whatever that, in regard to this portion of his present indebtedness, Mr. Swartwout's accounts, either at the custom- house or as returned to the Treasury, bear any impress of fraud or de- ception ; for what was omitted to be charged on one of those accounts, was fully charged on another of them. Yet, in fact, if there was any such fraud or deception, it was confined to, and consisted in, the manner of keeping his accounts at tfie custom-house, (with which the Treasury, as remarked in a former part of this report, had nothing to do,) and it ceased with the making out of his quarterly accounts to the Treasury, inasmuch as in the latter these sums were always inchided in the item of " cash and unsettled accounts ;" and the only variation between the quarterly returns to the Treasury and the accounts at the custom-house is found to have been in the fact, that in the former he specified as " cash and unsettled accounts^^ the very items which are now in question, while at the custom- house these items were retained in the unsettled accounts, and not in the cash account. In other words, '* it was only on the books of the custom- house that it appears he concealed and suppressed the true cash balance in his hands." Ho A'-, then, can he be said to have been in default on his accounts loith the Treasury, at aiiy period, for these items? The examination of Mf. tFudcrwood, the Treasury's own agent to in- vestigate the accounts, fully elucidates and substantiates the views here presented and adopted by the committee. 20 Rep. No. 313. Examined by Mr. Owens. Question 29. Refer to your answer to the 5th question, propounded by Mr. Curtis, and say whether the accounts of which you there speak cor- responded with the accounts as contained in the books of Mr, Swartwout at the custom-house at New York, and examined by you, both cash and other books ; and, if they were at variance, slate distinctly in what con- sisted the dilference. vinswer. The quarterly accounts rendered to the Treasury correspond- ed with the accounts at the custom-liouse, so far as to make up the ag- gregate balance ; but on examination at the custom-house, of the *•' sus- pense account," which, in connexion with the "cash on hand,'' formed one item in the balance of his quarterly account, it appeared that several sums, such as Treasury warrants, moneys arising from forfeitures^ &c., to a large amount, were retained in his suspense account, which should have been recognised and accounted for in his cash account : in this consisted the difference between the collector's accourits on his books and those returned to IheTrcasury — a difference which, as has been pre- viously stated, did not affect the ai^i^re^ate balance due from Mr. Swart- wout, but only the particulars of said balance. Question 30. Refer to your answer to the 3d question propounded by Mr. Curtis ; say, though he (Swartwout) omitted no debit or credit to the United States in his quarterly accoimts, as stated in that question, whether he did or did not omit to debit himself with cash received ; and state the amount of cash not so debited, from your knowledge of the accounts of Swartwout as rendered to tlic 7\uditor's Department at Washington, and the examination of his cash or other books at the custom-house at New York. Be as clear and distinct on the subject as your knowledge will enable you to be. Answer. In the last answer, I have stated that in the " suspense ac- count," kept by the collector at the custom-house, he had entered certain sums to the debit of said account which should have been charged to his "cash account.'"' The amount of said sums, as will be seen by reference to document No. 13, was 55^21,907 36. It was, therefore, in the cash ac- count kept by him at the custom-house that he omitted to charge himself with the above amount, and not in his quarterly accoujits rendered to the Treasury, in ichich it is believed he credited and held himself ac- countable for all duties received by him. Question 31. Refer to your answer to the 6th tjuestion propounded by Mr. Curtis, and say whether, upon examination of Swartwout's accounts as rendered at the Auditor's olfice, the dof ilcation could have been readily detected or not ; and whether, upon the examination of all or part of the books at the custom-house, and in reference to the accounts rendered by Swartwout, the defalcation was not apparent to you ; and state whether, though the true and as^i^rres^ate balance of his accounts was not concealed by means of fraud ')r falsehood, he did not in those accounts conceal and suppress the true cash balance in his liands. Answer. No part of the defalcation could have been ascertained from an examination of Mr, Swartwout's quarterly accounts rendered to the First Auditor prior to that arising on the bonds, which xvould have been made to appear on a thorous(h examination of them at the time thetf were received at the Treasury. In the collector's quarterly account hi& Eep. No. 313. 21 always included llie "cash and uusettled accounts" in one item of the balance, and there was no means in tlie First Auditor's othcc of distin- guishing the actual cash from the amount of tmsciiled and suspense ac- counts. // is therefore only on the books of the custom-house, so far as I know, that it appears he '• concealed and suppressed the true cash balance in his hands.''' Corroborative of the view tlius taken byllie committee, they will quote also another portion of Mr, Fleming's testimony, Avhich clearly indicates that he would not be led into an answer that would imply it as his opin- ion that JNIr. Swartwout was or can justly be regarded as a defaulter prior to 1S37. He leaves such a construction wholly to the responsibility of the execiuive oIRcers. Exami)ied by Mr. Smith. Question 73. What was the amount of Swart wont's defalcations ari- sing prior to 1S37, and subsequent to the year 1830 ? ^^nswer. Tiie amount of such defalcations, as exhibited in the report of the Secretary of the Treasury, in document iVo. 13, to the House of Representatives, was vS336,71S 69. Question 74. Did you or did you not, in your examination of Swart- wout's accounts, deduce and furnish to the Treasury Department the data upon which the Secretary's report, referred to in your last answer, is founded ? ./Inswer. I did not deduce and furnish to the Treasury Department such data. Mr. Underwood, of that Department, came on to this city in November last, to investigate the accjunts of i\Ir. Swartwout. The rec- ords of the custom-house were laid before him, and he proceeded to draw up a statement, gleaned from those records, and from memorandums fur- nished him by the assistant cashier of the custom-house, which enabled him to report to the Treasury the indebtedness of Mr. Swartwont. From time to time, in the progress of his work, Mr. Underwood found it neces- sary to ask explanations from me, in relation to the records of the custom- house, to enable him to pursue his laliors understandingly. Examined by Mr. Curtis. Question 121. Were any of the quarterly returns false ? If yea, which of them ? Ansiver. The accounts of bonds paidybr the first and second quarters of 1837, rendered to the Treasury Department, ivere false, inasmuch as they did not contain all the bonds that were actually paid, by a very large amount, and which Is seen in document No. 13, of the House of Repre- sentatives. Again, Mr. Fleming was asked by Mr. Smith : Question 2. When was the first deficiency in ^Ir. Swartwout's accounts detected by you; and to wliom and when did you communicate the first information of your discovery ? ^^nswer. The first deficiency in Mr. Swartwout's accounts was detected by me in the month of June, 1S37. I noticed the circumstance to Mr. Phillips, the assistant cashier, at the same time. 22 Rep. No. 313. Qtiesiijn 3. What was tlie amount of said deficiency discovered by you ill .Trine, 1837 ; and to whom, and when, if to any other person than JNIr. PhiUips. did you give information thereof? .hi.swirr. Tiie amount of deficiency was ahout S500,000 ; and the reply of Mr. Phinii)s, on my conmiunicating to him the intelhgence, prevented my mentioning it to olhers. Question \. What was Mr. Philhps's reply, adverted to in your last answer ? Answer. The reply was, that tlie cash book contained all the bonds that had been paid at the ollice ; the residue were in suspense. Exitmined hy Mr. Fo.ster. Question 46. You mention in your answer to tlie 15th interrogatory, that you have never known, or detected, at any time, any false return or erroneous statement in any quarterly account made by Mr. Swartwout to the Treasury Depar;ment. Now. will you state whether there were not false or fraudulent omissions by Mr. Swartwout in his accounts, which were calculated to mislead and deceive yourself, as auditor, and the Treasury Department ; and if so, what were those omissions, and tuheriy as far as you know, did those omissions take place? Answer. There were such omissions, (as is now ascertained,) and they eonsisted in Mr. Swartwout's keeping out of liis accounts large sums of money paid to him on revenue bonds; and they look place principally in the \st and 2d quarters of 1837. W'hen the same witness was carried back to the alleged defalcations of Mr. Swartwout prior to 1837, and so questionqd as to lead him, if dis- posed, to describe them as defalcations, and as ^^ fraudulent^'' omissions, he studiously and properly, as is believed, avoided every such assump- tion. The following interrogatories and answers will fully illustrate this fiict: Air. Fleming examined by Mr. Foster. Question 49. In your answer to the llUh interrogatory, in stating the balances of the four quarters of 1834 and the two first (piarters of 1835, the whole balance of each quarter is stated as '■•due the United States."^ Now, is that intended to mean any thing mon^ than that such balance is the amount for which he was responsible to the Government, and not as a balance which he was then liable to pay ? wlnswcr. The balance due the United States, which is charged at the end of every quarter, is the amount for which the collector is responsible to the Government, and includes all duties which had accrued up to that time, xchether collected or not. Question 50. From what other sources did Mr. Swartwout receive money belonging to the Government, (besides that received on revenue bonds,) which he fraudulently omitted to charge against hitnselfin his cash accounts on the cusfo??i-house books? And what was the amount, as far as you are now able to state ilie same ? Answer. Mr. Swartwout received moneys from duties. payable in cash, as well as bonds, also from goods forfeited to the United States, and also from certain Treasury warrants, remitted to liim from Government. A Rep. No. 313. 23 furtlier source of receipts was that arising from deposites for duties not ascertained, and payable in casli. Mr. Swartwout also advanced to him- self nionoys for the expenses of his office, more than were needed. The total amount ot' moneys appropriated by Mr. Swartwout, and not placed to the debit of his own cash account, as is now ascertained, ex- clusive of the bond account, is about five hundred and eighty thousand dollars. In this sum, however, is embraced the amount which Mr. Swartwout retained on his going out of ollice, and which was about $20\,0Q0. Qnestio7i 51. Weie the omissions of Mr. Swartwout, as stated in your last answer, such as to deceive you in regard to his real indebtedness to the Govermneiu ? ^^nsiuer. No examination was made t© ascertain Mr. Swartwout's in- debtedness to the Govermnent until after the expiration of his term of office, and therefore such omissions did not affect the adjustment of his current quarterly accounts ; and their condition, or existence, was not a matter of inquiry by me — the outstanding balance of a previous quarter being always brought into a succeeding quarter. Question 52. In auditing the weekly, monthly, and quarterly accounts o( Mr. Swartwout, did you have access to all accounts, abstracts, and vouchers, which were afterwards sent by liim to the Treasury Depart- ment ? Jlnswer. All accounts for the Treasury Department are kept in the auditor's office, and pass under my supervision. In general, I made a cursory examination of all, before they were sent from the custom-house. Mr. Underwood, the confidential agent of the Treasury Department, with equal care and ])ropriery, throughout his testimony, discriminates be- tween the accounts of Mr. Swartwout as rendered prior, and those ren- dered subsequent, to the commencement of the year 1S37. The fravdulenf concealment is not by him made to attach to any returns prior to 1837^ but to "the abstract of bonds taken and paid in 1S37." Examined by Mr. Foster. Question 26. You say, in answer to the 6th interrogatory, that you "have no reason to believe that in Mr. Swartwout's quarterly accounts, adjusted at the Treasury, he concealed, by means of fraud and falsehood;, the true and ug<^re<^ate balance of his account." Will you please to state whether yoi^ have not reason to believe that he fraudulently con- cealed in those accounts the true amount of money he hud received; and were not his accounts so made out as to induce a belief that he liad ac- counted ya/V/?/ for all the money which had come to his hands? Answer. When I said, in my answer to the 6th interrogatory, " I have no reason to believe that in Mr. Swartwout's quarterly accounts, adjust- ed at the Treasury, he concealed, by means of fraud and falsehood, the true and as^gregate balance of his awount ;" I meant that he had not in those accounts omitted to credit the United States, and make himself ac- countable for all the duties secured by him. I did not mean to convey the idea that the iteins comprising the balance of his account were not erroneous in amount, a.ud fraudulently so \ the item o{ ^^ bo7ids uncol- lected''^ in 1837 being too large, and that of ^^ cash and unsettled and suspense accounts" correspondingly too small. I have reason to beheve^ 24 Kep. No. 313. that by the abstract of bonds taken and paid, rendered m 1S37, "he fraud- ulently concealed the true amount of money he iiad received," although, at the same time, the ags;regate balance of his account of the customs, for each quarter, was a correct one. With equal precision the First Auditor repudiates the idea of any fraud or defalcation in Swart wont's accounts prior to 1837. He was examined by Mr Curtis, and answered as follows: Quest io?i. 6. Was there any omission, in Swartwout's quarterly returns to your otficc, of any sum or item which he ought to have charged to himself, or credited to the United States therein? In otlier words, were not Swartwout's quarterly returns, in point of form, made according to the standing usages and orders of the Treasury Department ; and, in point of fact, did tliey not show the true balance due from Swartwout ? Answer. As far as my knowledge extends, the quarterly accounts of Swartwout were rendered in the usual form, and the proper credits for duties secured, and other moneys received by him, belonging to the United States, given ; at least nothing to the contrary has yet been discovered. Bat they were erroneous and fraudulent in this: tliat he failed (as appears from the late investigation by the Comptroller and Solicitor made at the custom-house in New York) to credit his bond account in the first quar- ter of 1837, and in some subsequent quartos, with the full amount of bonds paid within those quarters ; the effect of which was, to exhibit a larger balance of bonds than was in point of fact on hand, and to lessen the cash balance : or, in other words, he failed to accoiuU truly for the cash he had received on bonds ; and his account current of bonds was made to exhibit a false balance. The defalcations of Mr. Swartwout in 1837, and the first quarter of IS3S, (priucii)ally, however, in the two first quarters of 1837,) consisted of the proceeds of bonds falling due within that period, and collected by him. Of all these bonds, however, he had regularly charged himself in his accounts returned to the Treasury I)ei)artineiU, and they constituted a por- tion of the aggregate balance due from him to the Government. When he collected them, instead of paying the amoiuit into the Treasury, and thus offsetting the charge for bonds in his accoimts rendered to the Depart- ment by a charge against the (Tovcrnment of the cash so paid into the Treasury, he retained and used llie cash, leaving his indebtedness for bonds in its original amoiuu. Of all the sum withdrawn from his bank-deposite account as collector, and used for private purposes, prior and subsequent to 1837, as contained in a private memorandum kept by Mr. Phillips, his cashier, in the custom- liouse, and forming a part of tlie reported defalcation in House doc. 1 3, the evidence is, that it was, from time to time, replaced by Mr. Swart wont's own funds, and by funds derived from the bonds of 1837, as well as by anticipating the rash or other duties of a succeedins week to make good his return of cash reported as feceived in the week preceding. This operation cast the whole defalcations arising from the use of the moneys reported by Mr. Phillips upon the final weekly return of Mr. Swartwout. p Joshua Vhillips examined by Mr. Smith. Question 63. In House Doc. 13, pages 52 and 53, is a schedule of your own, of munerous sums, amounting to iSl 93,602 20, which were drawa Rep. No. 313. 25 from the public deposites, by Mr. Swartwout, for his own use. Do you mean said sums were drawn from his cash deposites, as collector, in the banks.'' If yea, in what banks, according to the "check books" spoken of by you at the foot of said schedule? Do you not know that Mr. Swart- wout also replaced money thus taken ; and, if yea, to what amount? Jlnsioer. The sums referred to in Doc. 13, pages 52 and 53, amountmg to ^193,G02 20, were drawn by him, as collector, from his cash deposites. They were drawn from the Bank ' of America, Mechanics' Bank, and Manhattan Company. I do not know that Mr. Swartwout ever replaced any of the particular sums contained in said list. He was, as I have sta- ted, in the habit of drawing money, and would sometimes replace it; but I cannot particularize the amounts. I was not always in the habit of no- ting the checks that Mr. Swartwout used, and I cannot undertake to say what portion of the above amount was returned. Qucslion 04. How did Mr. Swartwout conceal, in his weekly cash re- turns to the Secretary of the Treasury, the weekly deficit in his bank ac- counts, occasioned by the sums withdrawn, and not replaced, to which you refer in your last answer ? Jinsiuer. The collections made by the banks up to 3 o'clock do not ap- pear on the books of the cuslom-house until the following day ; conse- quently, in making up the weekly account for the Treasury Department, to 3 o'clock on Saturday, tlie amount collected at the bank on Saturday would not appear on the custom-house books until Monday morning ; by this means, he would have in bank the collections of bonds of Saturday, which do not appear in the weekly account of that Saturday ; and that amount, so collected, would be carried to the next weekly account, and so continue on. Quesllon 71. Please now to state, definitively, whether, taking your 63d, G4th., and 70ih answers, does it not necessarily follow, as a truth, that the aggregate deficit in Mr. Swart wont's cash accounts at the banks, oc- casioned by the sums withdrawn, as you have stated, would fall into, and be betrayed by, his last and final weekly cash returns, if it were not true that such deficit had been, at some time, and from some source, replaced by him ? jinswer. The aggregate deficit in Mr. Swartwout's cash account at the bank, occasioned by the sumswithdrawn, would be betrayed by his last and final weekly cash returns, if it were not true that such deficit had been, at some time, replaced by him. Question 12. Do you mean to be understood by your statement (No. 10) in the before-named House Doc. 13, commencing at page 54, of bonds which were paid to Mr. Swartwout, and recapitulated by Mr. Fleming, as amounting to $5dl,SS\ 63, that the proceeds of said bonds were never deposited by said Swartwout in the said banks ; and that, within your knowledge, they did not form a component part of the funds redrawn by him on the checks alluded to in your last answer ? ^^nswer. I mean to be understood, in my statements (No. 10) in document 13, commencing at page 54, that the proceeds of said bonds w^re deposited in bank ; and the amount so received was applied by him to conceal his previous defalcations, which would have been discovered if the bonds in said list had been charged on the cash book. Quest ion 13. Did, or did not, the process resorted toby Mr. Swartwout, as alluded to in your last answer, to conceal his previous defalcations, 26 Rep. No. 313. consist in his applying said amount to his bank deposites, and to offset his- b(?lbre-namcd withdrawals from such deposites ? ,^3)istve)\ Tlie process resorted to by^NIr. Swartwout to conceal his pre- vious defalcations, did consist in his applying said amount to liis bank deposites, and to offset his before-named withdrawals from such deposites. Henri/ Ogden, cashier of the customs : Examined by Mr. Smith. Question 19. On page 47, of House Doc. 13, heretofore named, is your letter to H. D. Gilpin, Esq., Solicitor of the Treasury, in which you say that Mr. Swartwout's use of the public moneys '' began not long after his appointment as collector" — that is, I suppose, in 1829. Now, will you state Avhether, in that letter, you mean to refer to any of the specific items reported in said document as defalcations ; or do you refer specially to his use of moneys deposited to his own credit, in banks, and prior to its be- ing credit(3d to the Treasurer of the United States in such banks? ^dnsiver. Mr. Swartwout commenced drawing out of the bank, against moneys deposited to his private account, about nine months after lie came into office. Those drafts, I think, were small. I have no allusion to any specific items reported in said documents as defalcations. I had no knowl- edge of them, Questioji 20. Please state whether, during the whole period that Mr. Swartwout was thus drawing from his deposites, he was not also contin- ually replacing sums on deposite from his individual resources or specu- lations ; and if the whole extent of such deficits was or was not conceal- ed by carrying into his weekly bank deposites cash returns to the Treas- ury Department of one week, such sums as were received by liini on the Saturday of the preceding week, and which we^e not returned in the cash account of such preceding week ? v^nsiuer. I have recollection of Mr. Swartwout having replaced moneys drawn out by him on several occasions. The amounts which he had in bank from deposites for duties, together with the receipts for bounds due on Saturday and Monday, gave him am})le funds to meet his drafts, over and above the balance due to Government. Question 21. Without the aid of such reserved Saturday collections, and in the way explained in your last answer, would or would not the deficit from the bank funds of his office have appeared most manifest on his weekly returns ? And was the ultimate effect of such a system of op- crating, any more than to cast upon his last and final weekly return the aggregate of all previous withdrawals from his deposites, so far as the same had not been offset by his replacing them from his own or other funds ? Answer. It would have been impossible for Mr. Swartwout to have made his weekly transfer without the aid of the collection of bonds of Saturday and Monday, and moneys for duties on goods not ascertained. The ultimate effect of such a system was to cast the whole balance due upon his final weekly return. From the preceding testimony, the committee report as established facts: 1st. That all moneys received by Mr. Swartwout, as collector, prior to Rep. No. 313. 27 1S37, are regularly accounted for by bim in liis quarterly returns to the Treasury Department. 2d. That so much of all moneys received by Mr. Swartwout prior to 1837, and accounted for to the Treasury Department in his quarterly re- turns, as were not paid by liim into the Treasury, were retained by him mider the tacit acquiescence of the accounting officers of the Treasury ; and were reg,ularly carried forward, debited to himself, i-n the balance of each subsequent quarterly account rendered by him to the Treasury De- partment, to the close of his term of office. 3d. That his omission to carry a debit to himself, of any of the moneys received by him from the Treasury, or from other sources, prior to 1837, to the class of accounts kept onlj'- at the custom-house, tailed his cash ac- counts, and liis carrying a debit to himself of any such items to any other class of accounts kept only at the custoni-hoiise, c:A\edi suspsnse and un- settled accounts, or by any other name, could not operate as a conceal- ment, innocent or fraudulent, from the Treasury Department, of the true cash balance in his hands — 1. Because, neither his cash account, nor his suspense and unsettled account, nor any other subordinate account kept at the custom-house, was ever exhibited to, or formed the basis of any quarterly settlement made by him with, the accounting officers of the Treasury. 2. Because, in his quarterly accounts settled at the Treasury Depart- ment, the aggregate and true balance of all his subordinate accounts kept at the custom-house, including both his cash account and suspense ac- counts, was uniformly, prior to 1837, carried into his quarterly account, under the item of -'cash, and unsettled accounts.^' 4th. That the defalcations of Mr. Swartwout, by means of fraud and false returns, commenced in 1837, and not sooner, and have existed since that period ; and the defalcations thus occurring, added to the moneys previously retained by him, according to his returns to the Treasury Department, and by the silent acquiescence of the officers of that Depart- ment, until the close of his term of office, constitute the aggregate of his defalcations at the present period. 3. THE CAUSES OF MR. SWARTVVOUt's DEFALCATIONS. This branch of the subject will be considered in the following order: 1st. The irresponsibilit}'- of Mr. Swartwout in pecuniary character at the time of his appointment to office. 2d. Culpable disregard of law, and neglect of official duty, by the late naval officer at New York. 3d. Culpable disregard of law, and neglect of official duty, by the First Auditor of the Treasury. 4th. Culpable disregard of law, and neglect of official duty, by the late and present First Comptrollers of the Treasury. 5th. The discontinuance of the use of banks as depositories of the pub- lic moneys, and permitting the same to accumulate in the hands of Mr. Swartwout. 6th. The negligence and foilure of the Secretary of the Treasury to discharge his duty as the head of the Treasury Depariment, charged by law with the superintendence of the collection of the revenue. 28 Rep. No. 313. Cause 1. — The irresponsibility of Mr. Swartwout, in pecuniary charac- ter, at the time of his appoint uient to office. There is obvious jeopard j^ of the public interests whei^^ever appoint- ments to offices of high pecuniary obligation are conferred by the Exec- Qtire upon individuals who are notoriously wanting in reputation for jesponsibility in financial matters. There probably cannot, in human relations, be brought to bear upon human frailty and cupidity stronger temptations to err from duty and rec- idtude, than spring from the possession and control (which must, from their nature, be somewhat exclusive) by individual office-holders, of large and extraordinary masses of Governn:ent money. Unless the checks insti- tuted to counteract such temptations are numerous, and exerted with sleepless vigilance at every point, the moral restraint against mal-con- duct of officers thus intrusted with large pecuniary means, which, at times, may seem not even to be exerted by Government, is very apt to relapse into a mere lurking apprehension of early detection. The conse- quence is, as soon as this apprehension is overcome by any known rcmiss- aess on the part of those to whom they are immediately accountable, or discovers a device by which to elude tl-e vigilance of their superiors in office, they are prepared to regard and treat the public revenue in their hands rather " as a means of promoting individual interests, than as an Instrument created solely for the service of the people." It was v/ell remarked by the " illustrious predecessor" of the present iiational Er.cculive, in the earlier, and, perhaps, purer days of his admin- istra^n:! of the Federal Government, that the possession of oflicial station, alone, exerts a corrupting influence upon the generality of men. " There are, perhaps," says his first message to Congress, -few men who can, for any great length of time, enjoy office and power, without being more or •ess under the influence of feelings unfavorable to the faithful discharge of their public duties. Their integrity may be proof against improper considerations immediately addressed to themselves ; but they are apt to acquire a habit of looking with indifference upon the public interests, and of tolerating conduct from which an unpractised man would revolt." If naked official station be thus pregnant with temptations unfavorable to the faithful discharge of public duties, how alarmingly accumulative these temptations become when are superadded to official station the temptations which flow from tlie collection, keeping, and disbursement of vast' sums of money, drawn directly from, yet, for the most part, always kept and used beyond the sight of, the people. If there be any thing that^can add to the evils of the known tempta- tions inseparable fromthe power of official station and public revenue combined to demoralize the government of a people, to enipovcrish their public treasury, and to infuse into them a lust for "the spoils" of politi- cal servility and cunning in preference to the rewards attendant upon the pursuits of honest and honorable industry, it is to be found in the ap- pointment to oflicial stations of high pecuniary obligations, of men noto- liouf^ly irrcn;ponsible, and whose lives have proved them incompetent to save for themselves ; as sure as effect must.fullov/ cause, so sure will the temptations already s])oken of prove but too successful in the pillage of the public treasury, when brought to bear, l)y Executive patronage, upon ?':v '- r;i, or cUiss of men, already excited by the habitual indulgence of / Rep. No. 313. 29 venturesome speculations, and by the alternate hopes and disappointments, successes and embarrassments, incident to such speculations. Of this class of men, and such a man, was Mr. Swartwout, in reputation and in fact, both at the time of his original appointment to the coUectorship, in 18.29^ and of his re-appointment, in 1S34. He was wholly irresponsible in pe- cuniary reputation, notoriously prone to hazardous speculations, deeply embarrassed from them, and always in want of funds. The committeej therefore, regard this as one of the primary causes of Mr. Swartwout's defalcations, and of the consequent loss of the public money which was intrusted to his collection and keephig. In confirmation of this view, the subjoined examination and testimony of witnesses are adduced : Joseph L. Joseph was sworn as a witness. Examined hy Mr. Owens. Question 1. Say, if you were acquainted with Mr. Swartwout wheE. collector of the port of New York, whether he was, during his official life, a purchaser and speculator in the stocks? If yea, state the difierent kinds in which he speculated, and the amount of those speculations. Answer. I am well acquainted with Mr. Swartwout, and knew him as collector of the port of New York. I knew he was frequently engaged in very large speculations in stock, from personal knowledge, and from, rumor. He speculated in Long Island railroad shares, Stonington railroad shares, Harlem railroad shares, Morris canal stock, and others, probably, of which I am not aware or do not now recollect. What the general amount of his speculation, I do not know; but I considered him always a large operator. Question 2. Were you or your house his agent or brokers in these transactions, or a portion of them ? If yea, state the amounts of those speculations in v/hich you had personal agency ; and whether they were speculations of Swartwout alone, or were other persons interested in them; and who were those persons. Answer. We v/ere his brokers in some particular stock transactions, in the purchase of Delaware and Hudson shares, Stonington railroad shares, Long Island railroad, and probably some others, which at this moment I do not remember. At the period of our stoppage, we held for him over a hundred tliousand dollars worth of stocks, which had greatly depre- ciated from the cost price, and which he previously had begged us to hold until there should be a change of times. They were for Swartwout alone, and probably reached at one period with us to two hundred thousand dollars. Question 3. AYere these speculations of which you speak, or a portion. of them, fortunate or adverse ? If fortunate, state the amount of profits made on, them; if adverse, state the amount of loss sustained. Answer. We once paid Mr. Swartwout some seventy or eighty thou- sand dollars profit, made on Morris canal stock. I do not remember of his ever paying our house over two or three thousand dollars of loss. His last speculations resulted in a loss, and he was unable to pay, and bor- rowed some money for us with the view of aiding us to bear up against these differences, actually lost, and the stocks we held, which we did not sell. The lo-ss was over twenty thousand dollars. Question 4. Do you know of your own knowledge, or from the in- formation of Mr. Swartwout, the amount of loss or gain upon other specii- 30 Rep. No. 313. lations in stocks, in which 3^011 had no personal agency? State the same as accnratcly as you can. ^inswer. I do not know of his other stock operations, except that ru- mor had frequently declared his having made and lost alternately. Stephen Whitney was sworn as a witness. Examined by Mr. Owens, " Question 1. Were you acquainted with Mr. Swart wout during the time he was collector? If yea, state if he was engaged in speculations of stocks during that period, and state the kinds of stocks. Answer. I was acquainted with Mr. Swartwout during the time he was collector of the port of Ne\v York; have understood he was engaged in dealing in stock, but of what kind and to what extent I am not ac- quainted. Question 2. Are you a director in the Morris Canal Company? Was Mr. Swartwout a director in the same? Had he stock in the company, and what amount? Was he not in the liabit of selling and reselling that stock; and Avere his speculations fortunate or adverse, and to what amount ? ^nstcer. I am a director of the Morris Canal and Banking Company, but have no knowledge of his (Mr. Swartwout's) transactions with that company. John IVard was sworn as a witness. Mr. Ward, who had been sum- moned at the instance of Mr. Owens, was Examined by Mr. Curtis. Question I. Were you acquainted with Samuel Swartwout before and during the time he was collector of the port of New York? Ansiver. Yes. Question 2. Do you know any thing of the causes and extent of Mr. Swartwout's defalcation as collector, the length of time it existed, or of any material fact connected therewith? Answer. I do not. Question 3. What is your occupation ? Jinsiver. Stock and exchange broker. Question 4. Have you been concerned as such broker in any opera- tions or speculations in stocks on account of Mr. Swartwout? Answer. I Ipave bought and sold stock on his account. Question 5. Have you ever bought and sold stock on joint account of yourself and said Swartwout? Ansiocr. No. Question G. To what amount have you bought and sold stocks for said Swartwout? Can you furnish a copy of your accounts with him? Answer. I should tliink not more than §100,000; we can furnish a statement in an account of purchase and sale of Morris canal stock ; there appears a loss to liiin of between five and six hundred dollars. Question 7. In any other and all other stocks in which you have acted as his broker, was (here any considerable loss to said Swartwout? Answer. To the best of my recollection, he did not lose money in his stock operations made tlirough our agency. Alexander Hamilton was sworn as a witness. Examined by Mr. Owetis. Question 1. Were you acquainted with Mr. Swartwout during the time Rep. No. 313. 31 he was the collector of New York ? Have you any knowledge of the mode and manner of conducting his business in the custom-house? Jinswer. I was well acquainted with Mr. Swartwout before and during the time he was collector, but am entirely ignorant of the manner in which his official duties were performed. Question 3. Was Mr. Swartwont, during the time he was collector, in the habit of speculating in stocks, in New York or elsewhere? If yea, state the nature of the slocks, who were his brokers, and whother his specu- lations were confined to himself alone, or were other persons engnged with him, and who were those persons ? Answer. Mr. Swartwout was in the constant habit of speculating in. stocks, and with several brokers. The Wards and Josephs are alone positively known to me as such ; but I do not know whether his specu- lations were jointly with others. Question 3. Were you in famihar and daily intercourse with Swart- wout? Do you know of your own knowledge, or have you heard from him, the results of his speculations either in stocks or real estate, whether the same were fortunate or adverse, and the amount of money gained or lost in them ? Answer. I was in the constant habit of free converse with Mr. Swart- wout, and, although I was under the impression that his operations in stocks and real estate were fortunate, I have no positive knowledge on the subject, with the exception of having been informed by the Josephs that they at one time paid Swartwout a balance arising out of profits from the purchase and sale of Morris canal stock, of $80,000; but, at the time of the departure of Mr. Swartwout, they related to me that he v/as indebted to them ^40,000. Examined by Mr. Dawson. Qvestioti 5. What was the reputation of Samuel Swartwout, at the time of his appointment, in the year 1829, for pecuniary responsibility ? Ansiver. Without any ; on the contrary, he was generally understood to be much involved in debt. Russell H. Kevins sworn as a witness. Mr. Nevins, who had been summoned at the instance of Mr. Owens, was Examined by Mr. Curtis. Question 1. Did you know Samuel Swartwout while he held the office of collector of New York ? Ansiver. Yes. Questioji 2. What is your occupation ? Answer. Stock and exchange broker. Question 3. Have you at any time, and to what extent, acted as broker or agent of said Swartwout, in the purchase and sale of stocks? Answer. The transactions of our house with Mr. Swartwout have been but few, and I believe only in a single instance was there a purchase of stock for his account. This to the amount of about ^25,000. There was a transaction of a larger amount with another person, with whom it was understood Mr. Swartwout was a party concerned. It has not yet been entirely closed, and, at the present prices of the stock, a very considerable loss would be the result. Mr. Swartwout never paid 32 Rep. No. 313. any money on account of the above transaction. I never knew him to have money, but he always wanted to borrow. Examined by Mr. Owens. Qnesiion 4. You say Mr. Swart wout was engaged with others in a certain speculation of stocks: will 3'ou name the persons so interested with him, and the amount of the speculations? ^nsiver. The name of the person interested with Mr. Swartwout I do not feel at liberty to mention ; he was the one on whom I placed my sole reliance, and was of undoubted responsibility. Mr. Swartwout I did not originally suppose to be concerned in the transaction. The other person was not in the custom-house, and held no office under the Government. The amount of stock purchased was, to the best of my recollection, about fifty thousand dollars. Swartwout never paid any thing on account of the stock. Examined by Mi\ Wise. Question 8. What was Mr. Swartwout's general character as a man of pecuniary responsibility, when he was appointed, in 1S29 ; and afterwards, when he was reappointed, in 1S34? ^^nsiver. It was generally considered not to be good. At the time of his first appointment, it was decidedly bad. Question 9. Was it not notorious in New York, during the whole time Mr. Swartwout was in office, that he was speculating in various modes, upon an extensive and hazardous scale ? ^^nswer. I think it was generally believed in the neighborhood of Wall street that Mr. Swartwout was engaged in many and extensive speculations. Jmnes B. Murray was examined as a witness. Examined by Mr. Owens. Question 1. Are you a resident of New York, and what is your busi- ness or occupation ? Were you a director or president of the Morris Canal Company, and how long have you been so? ^nsiver. I am a resident of New York ; by profession a merchant; was elected a director of the Morris Canal Company in February, 1834, and, with the exception of a short interval, have continued so until the present time. I was president of the Morris Canal Company, and resigned that situation when Louis McLane, Esq., \vas elected. Question 2. Do you, as director of the Morris Canal Company, know, or from conversations with Swartwout, the amount of stock in that com- pany in which he (Swartwout) spccukitcd ; and the amonnt of loss or gain ? Answer. I remember Mr. Swartwout liaving stated to me, at or about the period of my retiring from the presidency of the ISIorris Canal Com- pany, that he had cleared a large sum of money in that slock ; and I think he mentioned the amount as being i570,000. But what were his subsocpient transactions in that stock I do not know ; nor have I any par- ticular knowledge at any time, except as above stated. Question 3. Were you acquainted with Mr. Swartwout during the Eep. No. 313. 33 time he v/as collector of New York ? Was he engaged in stock specula- tions, and to what amount ? State tlie stocks he so speculated hi, and whether they were fortunate or adverse ; and the amount of loss or gain, Answer. I was acquainted with Mr. Swartwout during the whole period of his being collector of this port, and generally understood that he was largely engaged in stock speculations ; bat to what extent, or what were the results, 1 am unable to say. From the preceding testimony, the committee report as established facts: 1st. That, at the time of Mr. Swartwout's appointment and of his re- appointment to office, he was wholly irresponsible in pecuniary reputa- tion, and was involved in debt. 2d. That at the time of his appointment and of his reappointment, and for the whole period he was in office, he was notorionsly engaged in large and hazardous speculations, and deeply embarrassed by them. 3d. That his pecuniary irresponsibility, and consequent involvements by hazardous speculations, constitute one of the primary causes of his defal- cations to the Government. Cause 2. — Culpable, disregard of law, and neglect of official duty, bt/ the late naval officer at New York. The naval officer is designed to be a complete check upon all the ac- counts of the collector ; and existing laws are, and have been since 1799, amply competent to render it so, if efficiently administered. The duty imposed upon naval officers by the 21st section of the act to regulate the collection of duties on imports and tonnage, passed March 2, 1799, is as follows : " The naval officer shall receive copies of all manifests and entries, and shall, together with the collector, estimate the duties on all goods, wares, and merchandise subject to duty, (and no duties shall be received without such estimates,) and shall keep a separate record thereof; and shall coun- tersign all permits, clearances, certificates, debentures, and other docu- ments to be granted by the collector ; he shall also exa^nine the collector's, rbstracts of duties, and other accounts of keceipts, bonds, and expen- ditures, and, if found right, he shall certify the same.'"' By the report of the Secretary of the Treasury to the President, and by the latter commimicated to Congress, (House doc. 13, p. 6,) it is repre- sented that a circular, issued by the Comptroller of the Treasury in 1821, had tended to remove the check on the collector, provided in the above- enactment of law, '' in some particulars very essential.^' The apolo- getic language of the Secretary is : " It appears that the naval officer at New York, if able to perform the task, has not for a long period, or at least during the seventeen years tliati have elapsed since a circular issued by the Comptroller in 1821, considered it his duty to certify to the expenditures and accounts generally, but only to certain portions of them, and to the correct assessment of the duties. " That circular, unfortunately, tended to remove a check on the col- lector, in some particulars very essential, and has been repealed by the present Comptroller." (Ho. doc. 13, pp. 6, 7.) The committee, finding the accounts and returns of Mr. Swartwout, made quarterly to the Treasury, to have been correct in every particular 34 Rep. No. 313. prior to 1S37, whether checked properly l)y the records and vigilance of the naval oliicer or not, and that the only accounts containing fraudulent or deceptive omissions were those rendered tor 1837, and thiit such omis- sions were conlined to the bond account, on which bonds had become payable and had been paid to Mr. Swartwout, the committee were led to examine how far the circular of 1821, alluded to as above by the Sec- retary of the Treasury, did in fact remove from this class of the collector's accounts the check upon them provided by law in the duties of the naval olhcer, and how far, in truth, said circular furnished any apology for the naval oflicerlbr any neglect of those accounts on his part. On recurring to the said circular of 1S21, disclosed by the Secretary in House document of the present session numbered 54, in answer to a special call of the House, the committee find that, instead of being de- signed or tending to remove any check from the collector which had been previously exercised by the naval oflicer under the law of 1799, it avowedly enjoins upon them the exercise of all the checks contemplated by that law, with a single exception ; and the previous neglect of them by naval othcers, and not a discontinuance of any of them, is set forth as the occasion of alluding to them in the circular. The following is its language : " It is deemed proper, at this time, to notice another subject, on ivhich instriiclions appear to be necessary. " Until lately, it has been the practice of the naval officers, generally, io certify no other accounts of the collectors than the abstracts of duties of merchandise iinported, and the tonnage abstracts. " These are the only documents which were required to be so certified under the laws anterior to that of the 2d March, 1799, in the 21st sec- tion of which a dilTerent regulation is made on the subject ; but as no instructions can be found relative to this regulation, which, it appears, has hitherto not been observed, it is presumed that the alteration alluded to was overlooked. "By the section referred to, the naval officers are required to examine, not only the collectors' abstracts of duties, but ' other accounts of re- ceipts, bonds, and expenditures ; and, if found right, to certify the same.' "As all the accounts of disbursemeyits made by the collectors are to be supported by vouchers, it is not considered necessary that such accounts, except the abstracts of duties refunded, should be examined and certified by the naval officers. "The documents which are considered to require that formality are as follows, viz : " 1. The abstracts of duties on merchandise and tonnage. " 2. The abstracts of duties on passports and clearances. " 3. The abstracts of interest received on bonds which are not paid as they become due. " 4. The abstracts of marine hospital money collected. " 5. The tiond accounts. " 6. The abstracts Of duties refunded. "To enable the naval officers to examine and certify these returns, it will be necessary that they should, so far, keep corres])onding accounts with the collectors of the cjistoms, from whom the forms of those ac- counts can be obtained, and who, I feel persuaded, will cheerfully give their co-operation in carrying the provisions of the law into effect." Rep. IS^o. 313. 35 It will thus be seen that, while it was not designed, and could not have tended, to remove any check whatever on the collector, in any particular very essential, (as accounts of disbursofmcnts require vouchers in all cases, the naval officer's check in regard to tjiem is expressly declared by the circular as " nut considc7-ecl necessary, ^^) that circular did enjoin upon naval officers^ in most specific terms, the exercise of every essential check upon coUecto'ls tiiat the law of 1799 contemplated and provides; and it is only because the naval officer at New York did wholly neglect to com- ply with and fulfil the instructions contained in this same circular of 1821, viz : to ^^ keep corresponding accounts with the collector of the customs^' in relation to bonds taken by and bonds paid to him, and by this means to make the thorough examination, independently of the collector's ac- counts, of the •' bo)id accounts" returned to the Treasury Department by Mr. Swartwout, and not because of any check removed by the cir- cular of 1821, that Mr. Swartwout was enabled to return his accounts for all the four quarters of the year 1837, falsely and fraudulently omit- ting therein the many hundred thousands of dollars in which he has be- come a defaulter for that year. It is in this palpable disregard of the positive requirements of the law of 1799, prescribing the duties of naval officers, and in this equally palpable disregard of the positive require- ments of the more recent circular of the Comptroller of the Treasury, dated November 10, 1821, and in the negligence of records and want of proper vigilance on the part of the naval officer at New York, from the commencement to the close of Mr. Swartwout's two terms of service, that is found by the committee a primary cause of Mr. Swartwout's immense defalcations. And the committee feel constrained to add, from a sense of duty to the House and to the country, that the attempted apology quoted above, made by the Secretary of the Treasury to Congress before the cir- cular of 1821 was disclosed, for the disregard of law, of Treasury in- structions, and of plain official duties by the late naval officer, who only left that office to take another public office of no less respectability under the present Executive, is wholly vv^ithout weight and without foundation. If it were true that the class of accounts returned by Mr. Swartwout to the Treasury prior to IS 37 involved defalcations, contrary to the opinion of the conmiittee, as deduced in a former branch of this report, then, it is true that a cause of those defalcations, excepting those in office "expenses" and "forfeitures," is in like manner to be found in the same culpable negligence of the naval officer, already described, in not keeping original records and accounts as required by law, as also by the circular of 1821, corresponding with those kept by the collector of ^^ ton- nage duties'^ and " duties refunded" to merchants. By the evidence before the committee, it was found that the only ac- count or record, of the whole number required by law to be kept by him, that was kept by the late naval officer kt New York, was an abstract of duties accruing, furnishing no check whatever upon any account of the collector, except upon his computation of the dutiable sums on imports. Beyond this, which is comparatively of but the least consequence of all checks, if standing alone, the naval officer at New York has served but as a useless expense to the Government, adhering to empty forms, of no efficacy but to give currency to anv frauds which the collector might im- body in his accounts. All of which is elucidated and substantiated by the following examination and testimony : 36 Rep. No. 313. Mr. Flcyning, auditor of the custom-house. Examined by Mr. Smith. Question 69. By a comparison at the naval office, at the port of New York, of the collector's quarterly returns, transmitted to that office for examination, oj bond s paid within such quarter, with the records in said office of said collector's preceding quarterly returns of bonds payable in that quarter, is not the naval officer enabled at once to detect any omis- sion, in the quarterly returns of the collector, of bonds that should be ac- counted for as paid, or as having come to maturity and extended or put in suit ? Jinswer. The naval officer was not enabled to delect any such omission, from the fact that no record of bonds was kept in that office. The col- lector's proofs were submitted to the naval officer, and upon their evidence he certified the bond accounts to be correct. Question 70. What character of proofs do you allude to in your last an- swer, as having been in usage submitted by the collector to the naval officer, to enable the latter to test the correctness of the collector's accounts and returns ? Ansiver. Those proofs are the accounts as made up, and retained in the collector's office, exhibiting the same aggregate amounts as the returns transmitted to the Treasury. Question 71. From the manner in which the duties of the naval office were discharged in regard to Mr. Swartwout's accounts, as described in your two last answers, did or did not that cease to be a check upon the deficiencies and intentional omissions of those accounts ? Answer. The naval officer, in regard to the bond accounts, did not form a check upon the collector. The following testimony of the late deputy naval officer, and now a deputy collector at New York, though in the outset evasive, grew at length to a full concession of the truth. John T. Ferguson was sworn as a witness. Examined by Mr. Owens. Question 1. Are you an officer in the custom-house, New York? How long have you been there, and what are the duties you have discharged ? Jinswcr. I am. My connexion with the custom-house commenced in May, 1829. I served as deputy naval officer till 29th of March, 1838. Since then, with the omission of about three weeks, have been principal deputy under Mr. Collector Hoyt. Question 2. From your knowledge of the manner of conducting the business of the naval office in the custom-house at New York, and from your connexion with it, will you be pleased to state if the naval officer acts as a check upon the collector; whether the accounts are critically ex- amined, or if the examination and certifying the same is not rather a formal than an actual [examination ;] and whether such has not been the uniform practice, as far as you are acquainted with the performance of the duty, by the naval officer ? *finswer. In answer to the first question, I have to answer, most as- Eep. No. 3! 3. 37 suredly, and for many years been generally considered and proved to be a check. 2d. The accounts were critically examined, and I do sincerely think it by no means a formal examination, but an absolute check. 3d. The practice pursued during the ^crm of my being deputy has been uni- form, and the only practice since the revenue system. The examination of John T. Fergusmi was resumed. Examined hi/ Mr. Smith. Question 4. Was any record or register kept in said naval office, while you were in it, of the collector's abstracts of duties, and other accounts of receipts, bonds, and expenditures? If yea, state what was the nature and extent of such record or register in form and substance } Jlnswer. The only book or record kept in the naval office is the quar- terly abstract, which I have before referred to, and which comprises the whole amount collected for each quarter, including bonds taken and du- ties paid : the nature of this record being supposed to be heretofore so satisfactory, that duplicates of other accounts were not thought necessary. Question 5. When you say that the quarterly record abstract kept in the naval oiiice includes "bonds taken," do you mean to convey the idea that such abstract specifies the amount of each bond so taken by the col- lector, its date, the names of the parties to it, and when it became payable ? or do you mean that it only contains the aggregate amounts of dutiable goods, that have been entered during the respective quarters of the year, and the duties on which Avere entitled to be secured by bond ? . Jinsioer. In answer, I mean it only accounts for the aggregate amount of duties accruing during each quarter, without specifying what portions of such amounts were payable or were paid in cash, or what portions were either bonded or entitled to tlie privilege of being secured by bond. Question 6. Has any change taken place in said naval office, down to the present day, departing from the mode you have described as the mode of discharging the duties of said naval office while you were in it ? Answer. No change had taken place up to the time of my leaving the office ; and what change may have taken place since I left, I am unable to say. Question. 7. By the abstract you iiave described as kept in the naval office, or by any other papers or records in said office, is the naval office enabled to ascertain v/hat the actual receipts of the collector have been in cash, in any quarter, for duties, or other means as collector ? Answer. To my khowledge, the abstract does not show the amount re- ceived quarterly in cash, nor does any other account kept in the naval office. Question S. Were any of the " accounts of receipts''^ by the collector of cash, or of bonds, subjected to th£ naval officer for his examination and certificate, while you were in said office ? If yea, what class of accounts ? Answer. The books which contain ail the bonds paid, and bonds out- standing, have been always examined, within my knowledge, at the naval office, and certified by the naval officer ; but no duplicates thereof kept in the naval office at the time of examining the quarterly account of the collector. Question 9. What class of the collector's accounts of cash receipts ^^? S28S • V;t 38 Rep. No. 313. were examined and certified by the naval olliccr while you were in said office ? Please mention each class. Answer. No accounts of cash receipts of the collector have, to my knowl- edge, been examined in the naval otiice, separate from the quarterly ab- stract of his accounts. Question 10. How many abstracts of different accounts of the collector Avere examined quarterly in the naval office, while you were there ? Please name each. insurer. The American and foreign abstracts of accounts of duty arc the only ones which are thoroughly examined by separate accounts in the naval olFice. Question 11. Did the abstract, specified in your last answer, in any way enable the naval office to ascertain what amount of cash had been received on -bonds or otherwise, by the eollector, during any quarter? ,/inswer. No. Quest ioti 12. Had the naval office any check in use, while you were in said ollice, by which any defect in the collector's quarterly accounts of moneys paid or payable, in any quarter, to the collector, could be discov- ered or found out? Answer. Not by any means. Question 13. Could or could not the naval otliccr, by the books of "bonds paid" and "bonds outstanding," mentioned in your 8th answer, discover whether the bonds payable had comi^- to maturity or not ? Answer. He could: but such examination was not in the power of the naval officer, as there was no means furnished by which such examina- tion could take place. Question 14. When you say, in your Sth answer, that '•' the books which contain all the bonds paid and bonds outstanding have been always ex- amined, within your knowledge, in tlie naval office," and certified by the naval ofiiccr. why was it not in the power of the naval officer to discover vvdiether the bonds payable had come to raatiu'ity or not ? Answer. At the time of my being deputy in the naval office, no account was taken of the bonds given, as that belonged entirely to the collector, as he possessed the power of collecting the amount of duty accruing upon each importation, either by compelling the merchant to pay cash, or give his bond for the security of the revenue. Question 15. For what purpose or purposes were " tlie books which contain all the bonds paid and bonds outstanding," examined in the naval office, as stated in your Sth answer ? Answer. To conform, as far as in our power, to the requisition of the law, in certifying all bonds received by the collector, the examination of the bond abstracts, furnished the Treasury Department, was made luith the account la-pt l)i/ the collector; there being no means in the possession of the naval oliicer by which such examination could otherwise be made. Question 16. Do you mean to convey, by your tbregoing answers, the idea that the only examination made in the naval office, while you were there, of the accuracy of the collector's return to the Treasury Depart- ment of "bonds taken, and of bonds outstanding" for duties, consisted in comparing .said return, as furnished by him,t6v7A his own books of^'' bonds taken and bonds outstanding," also furnished f)y him for the purpose of such examination ? Answer. 1 answer, yes ; such is my meaning. Rep. No. 313. S^ Question 17. Did the naval officer examine and certify any of the col- lector's accounts of expenditure while 3^ou were in the naval office ? ^dnswer. He did not, to my knowledge. Question IS. From the manner adopted in the naval office, while you were there, of checking and testing the collector's account of bonds taken and bonds outstanding, did the naval officer know, or could lie discover, whether bonds that had come to maturity were unpaid, or, if paid, were accounted for ? and did the examination of such account of bonds hold the collector to explain why such bonds as had come to maturity, without appearing to be paid, were still unpaid ? Was such explanation ordina- rily required bv the naval officer as the condition or prerequisite of his certifying the collector's bond account ? Answer. To the first branch of the above interrogatory, I answer, that the naval officer could not, however, discover wiiether bonds that had come to maturity were unpaid, or not; or, if paid, whether they were accounted for, or not. To the second branch of the interrogatory, I answer in the negative ; and to the third branch, no such explanation was required. Question 19. From your knowledge of the manner in which the duties of the naval office were discharged, while you were in it, and, also, from the answers you have already given, is it true, or not, that the whole check of said office upon the collector's accuracy and faithfulness consisted entirely and solely in an examination of the correctness of the collector's estimate and assessment of the duties required by law upon the goods and merchandise entered at the office of the collector ? Ansiver. The principal and sole check on the collector, to the best of my knov/ledge, consisted in the examination of the correctness of the duty on each entry, and the collector's account of the aggregate amount ao- cruing quarterly from impost. George W. Cot was examined as a witness. Examined by Mr Smith. Question 1. Are you the son of the present naval officer of the port of New York ; and are you deputy naval officer of said port ? When did your father, and v/hen did you, hkevvise, enter upon the duties of your respective offices? Answer. I am the son of William S. Coe, the present naval officer of New York, and his deputy. I think my father went into his present of- fice on the 29th March, 1S3S ; and myself, as deputy naval officer, at the same time. Question 2. Who imniediately preceded your father in the naval of- fice, and who preceded yourself in the deputy naval office ? Answer. Enos T. Throop preceded my father as naval officer, and John T. Ferguson myself, as deputy to Mr. Throop. Question 3. Has any change in the system of executing the duties of said office, from that pursued by Mr. Throop, been adopted since Mr. Coe's term commenced ? Are any other records kept in said office, at this time, than were kept formerly in said office ; and is the examination of the collector's quarterly abstracts and accounts any otlier, so far as your knowledge extends, than the examination thereof previously made in said naval office. If yea, please to state in v/hat such change and dif- ferences consist. 40 Rep. No. 313. tdnswer. There have been several cliangcs in executing the duties of the naval oiliee, since the appoiutiueiit of my father as naval ollicer; and (here are, at present, other records kept in the naval office ihan those in the time of his predecessor. The method of examining the quarterly ab- stract is the same, as far as tlie aggregate amount is cor.cerned ; but changes have been made as regards ilie examinations of the other ac- counts in the collector's office. The accounts of the collector are not cer- tified until an examination has been made from the boolis in his office. A record of the fees of tonnage and iiospital money; also, the fees arising from exports, and a record of the amount of duties paid under protest; and, also, an account of the daily transactions of collector's of- fice, so lUr as the receij)ts and expenditures are concerned, taken from the collector's own books. Question 4. What is tlie nature of each quarterly abstract, and of each quarterly account, made by the collector, that has passed under examina- tion in said naval oliice, pursuant to the existing system of discharging the duties of said office ? Please designate each by name, and specify the nature of its contents. t.insive)\ The quarterly abstract is an account of all duties received, and that of the collector is examined in the naval office from corre- sponding books and papers kept in the naval office, and by which the dif- ferent a.iiounts are examined, so far a,s relates to the total amount ; but the different amounts of cash and bond duties are not specified in said quarterly abstract; and, to the best of my knowledge^ the quarterly ac- count of United States hospital money for the last quarter was ex- amined by corresponding accounts kept in the naval office. It may have been done previously ; I do not recollect of it, or other accounts which are examined by similar data. Question 5. Previous to the aJoption of the changes which you have enumerated, in the system of conducting the duties of naval officer, was said office any check whatever upon any class of errors, or deficits, or de- falcations which might take place in the collector's abstracts and accounts, beyond that of detecting errors in the computation of the duties payable on goods that had been entered ? If yea, state in regard to what other abstract or account of the collector, said naval oificer was a check upon the collector's proceedings or defalcations. Jinswer. Previous to the present method of conducting business in the naval office, I do not consider that it was any check whatever upon tlie office of collector, further tlian in the computation of the amounts of duties received. The quarterly abstract stales the total amount of duties received by the collector ; but wlieth(;r received by bonds or cash, the naval officer possesses no corresponding accounts to determine ; but he must be guided by the books of die collector, so far as the receipts of cash and bonds are concerned; and no books are kept in the naval office by which the naval officer can tell when bonds fall due, or whether or not said bonds are paid at maturity. Question G. Under the existing; system of the naval office, is the naval officer enabled to determine, either what amount of bonds have been taken by the collector for duties, in any quarter, of who are parties to said bonds, or the dates of sucli bonds, or when they are payable, or when any such bonds are paid, or whether tlie collector does or not ac- count truly for bonds that have been paid ? Eep. No. 313. 41 Answer. In answer to the sixth hiterrogatory, I have to state, that the naval oflice, under its existing system, is not enahled either to determine Avhat amount of bonds have been taken by the collector for duties, in any quarter, or who are the parties to said bonds, or the dates of said bonds, or when they are payable, or when such bonds are paid, or whetlier the collector does or does not account truly for such bonds. From the preceding testimony, tlie committee report as established facts : 1. That the late naval officer at the port of New York, throughout the term of his service from 1829 to 1838, wholly disregarded the require- ments of the law prescribing the duties of his otlice. 2. That said naval officer, for the same period, wholly disregarded the instructions of the Comptroller of the Treasury, of November 10, 1821. 3. That said naval officer, by so disregarding the requirements of law and the instructions of tlie Treasury Department, culpably neglected to keep the accounts and records appertaining to his office, and tliereby rendered the office nugatory as a check upon the accounts of the collector. 4. That if the duties of said naval officer, as authorized and directed by existing laws, had been executed with proper care and vigilance, they would have rendered it impracticable for any fraud or error in any of the accounts of the collector of said port to escape immediate detection. 5. That the culpable disregard of tlie plain requirements of law and of Treasury instructions prescribing the duties of naval officers, by said naval officer, and his continued neglect of official duty, are a primary cause of the immense defalcations of the late collector at New York. Cause 3. — Culpable disregard of law and neglect of ofjUcial duty, by the First Andilor of the Treasury. The duties of the First Auditor are prescribed in the 5th section of the act of September 2, 1789, "to establish the Treasury Department," and the act of iMarch 3, 1817, '• to provide for the prompt settlement of public accounts," and are as follows : " It shall be the duty of the First Auditor to receive all accounts accru- ing in thq Treasury Department, and, after examination, to certify the balance, and transmit the accounts, with the vouchers and certificates, to the First Comptroller, for his decision thereon." The pres nt Auditor came into his office November 1, 1836. The accounts of Mr. Swartwout up to December 31, 1837, appear to have been regularly transmitted to his office, pursuant to the Treasury circular of March 1, 1830, for examination and settlement. The law con- templates this examination to be a thorough check upon the errors, if any exist, of both the collector and naval officer. And here all Mr. Swart- wout's accounts, except his bond accounts, appear to have been exam- ined, with their proper vouchers, and certified by the Auditor. But the Auditor's certificate covered the bond accounts as well as the other charges, although no-!; in fact examined. His certificate, vvath the vouch- ers, except those relating to bond accounts, was transmitted to the Fiist Com|itroller; but there was a constant neglect to transmit the vouchers of the bond account therewith, as positively required bylaw. It is in 4 42 Eep. No. 313. these bond accounts, thus neglected, and in rcgaid to whicli tlie law and Treasury instructions have at all times been most specific, requiring ex- aniinaiion, with vouchers, that the frauds upon the revenune by Swarl- wont were committed. jSo account appears ever to have been returned to the P^irst Auditor by the Comptroller, because the vouchers of the bond account;; of Swartwout were not transmitted with the Auditor's certificate tluToon. It is to this culpable disregard of law and neglect of duty in the office of the Auditor that is altributahlu the escape of Swartwout's fraud and defalcation from deteclion. The same neglect in this most importani branch of Swartwout's ac- count appears to have prevailed in the Auditor's office since 1832. It then originated in the disuic of the records required by positive instruc- tions, as well as from the nature of tl e cxiiminalion of accomits that is required by law of the Auditor. 'I'his feature in the administration of this ofiice is exhibited in the following examination : Answers of Mr. Undcricood. a principal clerk in the office. Examined by 3Ir. Foster. Queslion 20. Were not the accounts, abstracts, and vouchers, or other papers which were before you at the time you made those exutninations and statements, such as are usually before you in your examinations and statements when ''upon the same class of duties ?" ,inswe7'. They were. Question 21. In that examinatiun and statement, did 3"ou not bestow the same care and attention as you have at other times bestowed '' upon the same class of duties ?" Jlnswer. I did, except that, in relation lo the bond account, I made no examination whatever. Queslion 22. What were the reasons why you did not examine the bond account, at the same time that you examined the other accounts? ^^nsirer. As "the bonds taken in New York are recorded in the First Auditor's office only to the 2d quarter of 1834, while those paid or put in suit arc marked olf only to the 4th quarter of 1832," it was uWerly im- practicable for me to make such an examination of the bond accounts for the 3d and 4th quarters of 1S37 as would test their accuracy. As soon as the account of the customs was received at the office of the First Auditor, the bond accounts were iianded in to the clerk, whose duty it was to enter and mark oft' the bonds; and there they remain to this day. Question 23. Did you, on tliat examination and statement^ discover any defalcation on the part of Mr. Swartwout ? Jlnswer. I did not. Examined by Mr. Smith. Question M. Is it true, or is it not true, that the examination by the First Auditor of the Tieasury, prescribed by law, of Mr. Swartwout's quarterly accounts of bonds taken and bonds paid, as returned to the Treasury Department, lias been entirely omitted since 1832: and is it true, or not true, that this omission to examine said accounts is the sole reason Rep. No. 313. 43 why Swartwout's defalcations on paid bonds have escaped detection at the Treasury Department mjtil after lie left his office ? JJnsicer. The bond accounts of New York have not been examined, it is believed, in the office of the First Auditor, since the 4th quarter of l<'>i32. Had said accounts been thorouglily examined as soon as received at the office of the First Auditor, the defalcation in regard to tiie bonds must, in my opinion, have been discovered before the expiration of Mr. Swart- wout's term. Whether the omission to make such examination be the sole reason why his defalcation on said bonds was not so discovered, I do not know. Question \2. Do you know, from your acquaintance with the nature of said accounts, and your experience in the Auditor's office, any other reason for Swartwout's successful concealment of his defalcations, than the omission to examine his accounts thoroughly " at the Auditor's office ?" Please state also for what period you have been connected with said of- fice as an accoinitaut upon custom-house returns ? J3nsive)\ I do not know, as regards the returns of Mr. Swartwout to the First Auditor, any reason why his defalcations were not discovered sooner, other than the omission to examine his bond account promptly and thoroughly at the First Auditor's office. It is apparent to the committee, from the examination and testimony, that the First Auditor himself has never, until very recently, made him- self acquainted with the internal organization and duties of his office, or the system of checks instituted under Treasury regulations for it. Of course, if the chief in the office is either negligent or ignorant of the duties devolved by law upon him, or negligent because ignorant of the modes instituted and in force through prior years of executing those duties, the subordinates of the office may find ample opportunity for indulging in any de2:ree of nediarence in their vocations, to the imminent hazard of the whole revenue of the nation, and its consequent loss ni unmeasured and unknown masses. In answer 9 he says: "When I came into office, on ''the 1st of November, 183G, the recording of the abstracts of bonds taken in New York was, I think, as far back as some time in 1833, and the checking oft' was back somewhere in 1S32. I was a considerable time in office before my attention was drawn to these bond registers ; and, at first, I only regarded them as records for the purpose of reference when occasion might require, and did not understand that they were intended to check the collector in his quarterly returns. At what time I did become acquainted with the object for which they were instituted, I cannot recol- lect; and perhups even then I did not fully estimate the importance of having them brought up. The manner in which they had been kept, and the little importance that seemed to have been attached to them by my predecessor, had certainly lessened their importance in my estimation. I however did direct another clerk, whom I had employed in recording the reports on the collectors' accounts, to devote any time he had to spare from recording the reports, to recording bonds ; which he did until other business required his attention. But, I deem it proper to say, that, if I had been fully aware of the use of these registers at the moment I came into office, ond had put a clerk his whole time to recording and checking ofl" the New York bond account, he would not have been able to have brought it up so r.s to have discovered the error in Swartwout's bond ac- count of 1S37, mucli, if any, before the time it was discovered. Indeed, 44 Hep. Xo. 313. it is douhtfiil, ill my mind, whether one clerk could have hroxight tliem? u]) by tliat time, it', however, the recording of the bonds had not been required by the former practice, and the original abstracts had been used for checking ofl' the bonds paid and put in suit, by which means this ex- amination, if it had been kept up from the commencement, could have been made in time to accompany the report on the quarterly account, it would have been discovered in the Auditor's office, somewhere about the 1st of September, 1837, that Mr. Swartwout had failed to account for a large amount of bonds that had fallen due in the 1st quarter of that year ; and this discovery, it is presumed, would, as a matter of course, have led to inquiry ; but, in the condition in which the bonds then were, in regard to the right of extension, the collector might have deceived the Department for a time." It has been made manifest to the committee, in their investigation, that a recurrence to the records of cither the Comptroller's otlice or of the First Auditor's oflice, by either of the incumbenls of the?e offices, would readily have instructed them in the importance of the bond register, which has been thus cul]iably neglected. It would have been found that the very occurrence which has now happened, though in a degree not in like manner so alarming to tlie public mind as the latter, gave rise to the in- stitution of the necessary means to prevent its repetition in all future time, while due diligence should be used in these accounting officers. The fol- lowing examiiiation of the Comptroller places this position beyond cavil, and leaves as well the Auditor as the Comptroller without apology for any neglect of duty in relation to the bond accounts of collectors. Examined by Air. Smith. Question 21. Please examine the following extract, and say if it be a true copy from a circular of the First Comptroller to " collectors, naval officers, and surveyors," dated August 5, 1822 ; and if yea, state when, if ever, its requirements have been modified or repealed: " PVequent calls being made by Congress on the officers of the Treasury for information re'om your office calling upon Mr. Swartwout for a vendhion of his last quarterly accounts ? If nay, please annex a copy of all that preceded or succeeded said letter on the subject. 50 Rep. No. 313. Jinswer. I believe it was. It is the only one found on record to him in relation to that account. When I stated, in my answer to some other interrogatory, that he had been repeatedly called on, I had reference to the calls from the Comptroller's office as well as my own. J. N. Barker, First Compl roller, excwi'ined brj Mr. ^inilh. Question 10. Was any call, within your knpwledge, made upon Mr, Swartwout, at any time before the expiration of his term of office, to ex- plain what iten}S were contained in his suspense account, as debited to himself, uniformly, in his quarterly accoimt ? If yea, state wlien such call was made. Jinswer. There was no such call made within my knowledge. Without even calling upon the collector for explanation, the entire de- falcation of Swartwout upon his bond account might have been detected by due diligence in the office of the Auditor, had there been a comparison made of the accounts retained in the Auditor's office. Tins appears from the following testimony ; Mr. Miller, First ,/2uditor, exaynined hy Mr. Smith. Question 28. Does or does not each of Mr. Swart wout's quarterly returns of bonds specify the names of the parties to each bond, its date, its amount, and when it becomes due; also, the names of the parties to each bond that has been paid, its date, and amount ? Jinsioer. I believe they do ; but the abstract of bonds returned as paid within the quarters when his bond del'alcations occurred, could not have contained a description of those bonds on which he liad received the money and omitted to return " paid." Question 2,9. By a comparison at the Treasury Department of the col- lector's quarterly returns for any quarter of bonds paid within each quar- ter, with his ])receding quarterly return of bonds payable in that quarter, is not the examining officer enabled to detect any omission to account for the bonds becoming due in such last (quarter? Jinswer. I answer the above interrogatory in the affirmative ; and I refer to my letter to the Secretary of the Treasury, (contained in docu- ment No. 1.3,) and to my answer to interrogatory No, .9, put by Mr. Cur- tis, as explanatory. Question 30. Has any such comj)arison as is referred to in your last answer been made in the office of the First Auditor, of the bond account of Samuel Swartwout, collector, to ascertain if he had accounted for bonds previonsly returned by him as falling due, been made in said Auditor's office for some years past ? If nay, state to what period the omission ex- tends back. Jinswer. The recording of the bonds taken was as far l)ack as about the 1st Jamiary, 1833, when I came into office, and are now only brought up to the .second quarter of 1834 ; and the bonds paid and put in suit are not marked ojf later than the 4th quarter of 1832 : consequently, the bond abstracts in the quarters in which the bond defalcations occurred were not checked olf or compared. Rep. No. 313. 51 Mr. Flerning examined by Mr. Smith. Question 65. Do or do not the weekly returns of Mr. Swartwout's cash account to the Treasury Department cover and embrace, in the shape of cash, all the elements of liis quarterly returns ? »dnswer. They do, except the accounts of official emoluments, and cer- tain accounts which may be payable imder appropriations of Congress; these are kept distinct, and distinct returns are made of them. ■ Question QG. By reference to and comparison, at the Treasury Depart- ment, of the collector's weekly report of cash received on bonds in any week, with the collector's previous quarterly returns of bonds becoming due in such week, is not the examining otficer enabled at once to detect any deficiency in that item of the collector's weekly cash return ? Answer. If the quarterly accoun.ts of bonds becoming due were subdi- vided at the Treasury, into sums exhibiting each week's payments, the examining officer would be enabled to detect any deficiency, by com- parhig such sums with the weekly returns. Mr. F/emi)ig examined, by Mr. f-Fagener. Question 44. Question 4 states, upon the quarterly accounts ren- dered by Mr. Swartwout, would not an examination of tiiem, and a stri- king of the balance, have shown the true amount due from Mr. Swart- wout at any time ; your answer is, it would. From the confused state of Mr. Swartwout's accounts, the time of pay- ment of bonds extended, and the large number to be examined, could his accounts at the Treasury Department have been examined correctly and satisfactorily until the final close of his accounts; and, until then, could the true amount due from Mi:. Swartwout have been ascertained ? I wish you particularly to testify to the present case. Answer. If the bond accounts had been thoroughly and promptly ex- amined in the First Auditor's office, the deficiency in the bonds payable in. the first quarter, 1S37, must have been discovered before Mr. Swart- wout's term of office expired ; but whether he could have concealed the real facts of the case from the Department, by a reference to the embar- rassment and the confusion in his office arising from the non-payment and extension of bonds, until the close of his term, I do not know : I rather am of opinion that he could not. From the preceding testimony, the committee report the following facts as established : 1st. That the First Auditor of the Treasury has been guilty of culpa- ble disregard of law and neglect of duty in examining and certifying the correctness of the accounts of the late collector at New York, without having compared them thoroughly with the vouchers accompanying the same; and also in transmitting said accounts to the First Comptroller certified for revision, while the most important vouchers therefor were retained in his own office. 2d. 1'hat no fraud jiractised by the said collector, in his weekly returns of cash to the Secretary of the Treasury, could aflect the just and true settlement of the quarterly accounts of said collector at the Auditor's office, as said weekly returns form no part of the basis of the settlement of said quarterly accounts by the Auditor, and therefore furnish no apolo- gy for the neglect of the Auditor to examine the same thoroughly. 52 Hep. No. 313. 3d. That witlioiU the aid of the register of bond accounts of collectors, required by law and Treasury circular to be kept by the Auditor, to enable him to detect frauds and defalcations, if any exist;, the said Auditor could have thoroughly examined said Swartwout's quarterly account during any quarter since said Auditor has been in office, inasnuich as the original ({uarterly accounts were retained against law in his olfice, and furnished tL:e same means of a comparison as a register could have fur- nislied. 4th. That in the culpable disregard of law and neglect of duty, as aforesaid, by said Auditor, is found a primary cause why the immense delalcations of said Swartwout in 1837, and subsequently, escaped early detection, and have resulted in the probable loss of a large amount of the public treasure. Cause 4. — Culpable disregard of law and neglect of official duty by the late and present First Comptrollers of the Treasury. The functions of the First Conqjtroller of the Treasury are prescribed in the act of March 3d, 1S17, "to provide for the prompt settlement of public accounts," as follov/s : " That it siiall be the duty of the First Comptroller to examine all ac- connts settled by the First and Fifth Auditors, and certify the balances arising thereon to the Register; to countersign all warrants drawn by the Secretary of tlic Treasury, which shall be warranted by law ; to re- port to the Secretary the otiicial forms to be issued in the dilTerent offices for collecting the public revenue, and the manner and form of stating the accounts of the several persons employed therein : he shall, also, superin- tend the preservation of the public accounts subject to his revision, and provide for the regular payment of all moneys which may be collected." By a Treasury circular issued by the Comptroller March 1, 1830, (see journal of committee) all returns of accounts of collectors of the customs were required to be made, in the first instance, to the First Auditor of the Treasury. Previously, they Avere sent direct to the First Conq)trolIer, and from liis office forwarded to the First Auditor. As has been seen in a previous division of this report, the law imposes upon the First Auditor the duty of examining these accounts, certifying tlie balance, and then transmitting them, ^' ivith the vouchers and certificates, to the First Comp- troller for his decision thereoji.^' Although the jjrovisions of law and the duty of the First Comptroller are thus explicit, requiring him to cxqinine the accounts of collectors and certify the balance thereon, and to do this upon " vouchers'' required by law and Treasury regulations to l)e transmitted to him l)y the First *^u- ditor, the evidence taken by the committee shows that, in regard to Mr. Swartwout's accounts of bonds taken and paid, both this law has been wholly disregarded, and this duty wholly neglected, by the late and the present Comptrollers, from the year 1832 down to the period of the dis- covery of Mr. Swartwout's immense defalcations, in November, 183S ; and that, for this whole period, these accounts have not only passed the Auditor's olfice ivithoiit an examination of the vouchers required by law, but have also been certified by, and transmitted from, the Comp- troller to the Register, icithout his seeing or having a voucher for them Ec]). No. 313. 53 During tlie whole period mentioned, the vonclicrs transmitted by the col- lector have lain dead, useless, and untouched in the Auditor's otiice. It is in ike " bond account" that a major part of Mr. Swartvvout's inmiense defalcation has occurred. The following testimony from Mr. Under- wood, clerk in the Auditor's office, establishes the main fact: Mr. Undertrood rc-ea'ciniined by JMr. Smith. Question 40. Referring to the act of Congress passed March 3, 1817, entitled " An act to provide for the prompt settlement of public accounts," sec. 4, which provides as follows : "That it shall be the duty of the First Auditor to receive all accounts accruing in tlie Treasury Department, and, after examination, to certify the balance, and transmit the amounts, with the vouchers and certificates, to the Comptroller, for his decision thereon." Please to state whether, in pursuance of said law, Mr. Swartwout's quarterly accounts of bonds taken and paid have been transmitted from the First Auditor of i\\e Treasury to the Comptroller of the Treasury, with the First Auditor's cerlificate thereon, at any ,time or for any period between the fourth quarter of 1832 and the present time? And if yea, when, and to what extent has it been done ? .Answer. They have not, but still remain in the First Auditor's office. It was the obvious duty of the Comptroller, on receiving accounts from the Auditor's office vmaccompanied by legal vouchers, to re- turn them to the Auditor, and withhold his certificate until the ac- counts had been ])roperly examined there, and proper vouchers trans- mitted with them. Had tliis been done by either the present Comptroller, who succeeded to the olfice March 5, 1S3S, and had the adjustment of Mr. Swartwout's accounts for the third and fourth quarters of 1S37, as well as his last account, been made ; or had the same been done by his prede- cessor, George IVolf, Esq., now collector of the customs at Philadelphia, who held the office from the summer of 1836 until Mr. Barker succeeded to it, Mr. Swartwout's defalc;ition could not have occurred. The absence of the voucliers could at once have been explained, and its fatal cause remedied. But it is to be remarked, so ineilicienlly have the duties of the First Comptroller's office been administered of late years, that no means in the shape of independent accounts or record transcripts have been kept in it, by which any test could be applied to the revenue returns of custom- house officers, or (o detect any fraud or unintentional errors in either the returns themselves or the settlement made of them in the Auditor's office, if computation in the figures be excepted. The office, as administered, has been only in contemplation of law, and not in the execution of it, any check whatever upon either the First Auditor or collectors. In a word, the certificate of the Comjitroller has been a fancy affair throughout, for years, thougli ap])liod to tro.nsactions in which annually millions of dol- lars may be saved or lost to the Treasury, according as it is efficiently or inefFicienlly applied. The examination and testimony of the i>resent Comptroller will elucidate and establish the reprefjentation here made. Question 4. Has any register, or book of record, of tiie bond account ef collectors, been kept at any time in the Comptroller's office, showing 54 Ecp. No. 313. the amount of each revenue hond taken by each collector, as reported in his quarterly returns of bonds, and showing also the date of each bond, the names of the principals in eacli, and when each was payable and each was paid ? If yea, state to what period such, register or book of record has been completed, in reference to bonds taken, as aforesaid, by the collector of the jiort of New York. ^insiver. No such register, or book of record, of the bond account of collectors, as is referred to in this interrogatory, is now kept in the Comp- troller's olhce ; n>r do I know tliat such register, or book of record, has at any time been kepi in that olrice. Queslion 5. Without such book or register as is contemplated by the last interrogatory and your last answer, how is it practicable for your office to detect any deficit or defalcation wliich might occur in collectors' accounts for any quarter, of bonds reported in a previous quarterly re- turn as falling due in such subsequent quarter? ^'Insiver. Such book or register is understood to be kept in the office of the First Auditor, to whom the quarterly accounts of collectors are ren- dered ; and however useful such additional check might be, if kept in the Comptroller's office, it has not heretofore been deemed necessary. The Gomi>troller's duty is to revise the accounts as reported by the First Auditor, and, finding them accurately stated, to certify the balance to the Register. Quesiio)i 6. If the Comptroller has no record or register by which he can check the accuracy of collectors' quarterly returnsof bonds taken and paid, what record has said officer by which to check any errors or neglect of duty (other than relate to the mere addition of figures) which Ihe */luditor of the Traasxiry viay commit i:i relation to collectors' accounts ? Is the revision of collectors' accounts in the Comptroller's office confined wholly to sucli data as are furnished by the First Auditor for the guide of the Comptroller ? Answer. The Comptroller is not enjoined by law or Treasury regula- tion to keep any record such as is mentioned in this interrogatory. The revision of the collectors' accounts in the Comptroller's office is limited to the data as furnished by the First Auditor, with such reference to the laws or Treasury authority, for the allowance of credit given to the col- lector, or charges against the United States, as may become necessary in the progress of the examination. Question 7. Do you mean to be understood by the terms of your last answer, that if there are any errors or deficits in the details or items of the collectors' (juarterly accounts, or omissions of the collector to charge him- R<;lf with as much cash receipts as he should, and such a fact escapes de- tection in the Auditor's olfice, the Comptroller's office holds no check upon buch accounts, independent of the Auditor's office, by which to detect such errors, deficits, or omissions ? Answer. Although errors of computation, in details or items, of the collectors' quarterly accounts, may be corrected by the Comptroller, he possesses no means of detecting any omission of the collector to charge himself with as nnich casli receipts as he should, or with any other items. Quation f). In your Gth answer you say, '-'the Comptroller is not en- joined hy I'lw or Treasury rc,s;uliition to keep any record such as is mentioned in^^ the Gth interrogatory to you, or a record hy which the First Comptroller can "check any errors or neglect of duty (other than re- Rep. No. 313. 55 "late to the mere addition of figures) which the Auditor of the Treasury may commit in relation to collectors' accounts." liy tlie Sth section of the act of March 3, 1817, of the laws of the Uni- ted States, it is provided as follows : "That it shall be the duty of the First Comptroller to examine all accounts settled by the First and Fifth Auditors and certify the balances arising thereon to the Register; to countersign all warrants drawn by the Secre- tary of the Treasury which shall be warranted by law ; to report to the Secretary the official forms to be issued in the different otiices for collecting the public revenue, and the manner and form of stating the accounts of the several persons employed therein ; he shall also superintend the pres- ervation of the public accounts subject to his revision, and provide for the regular payment of all moneys which may be collected." Will you refer to the above-quoted provision of law, and say whether it does not enjoin upon the Couiptroller the duty and power as fully to keep in his own office all useful and necessary forms of stating and keep- ing accounts, and records, and checks upon other accounting officers whose doings are subjected to the revision of his office, as it does to require all useful and necessary forms, records, and checks "in the different offices for collecting the public revenue ?" And if yea, was it or not competent and within his authority to have instituted, and to keep in his office, such a record and check as is mentioned in the Gth interrogatory above ? Jinswcr The law quoted in the last interrogatory does not, in my opinion, er)join upon the Comptroller the duty of keeping a record to check other accounting officers, of the description given in the interroga- tory. But as the duty of the Comptroller, under the law, is clearly to make a due and thorough examination of all accounts settled by the First and Fifth Auditors, before he certifies the balances arising thereon to the Register, he would by bound by a sense of duty to keep such record if he thought it essential. No Treasury regulation by the Secretary or Comp- troller has heretofore directed the keeping of such records or checks in the Comptroller's office, aUhough, in my opinion, such record might be there kept, under existing laws, and by the authority of the Comptroller. But it has not been only in regard to Mr. Svvartwout's accounts pass- ing through the otflce of the First Comptroller, that a signal disregard of law and neglect of duty have characterized the administration of that office ; but, with seeming fatality, Uke disregard of law and neglect of every duty imposed by law upon that office with which Mr. Swartwout was required to come in contact, appears to have pervaded the First Comptroller's department. By the act of May 15, 1820, section 1, it is provided that the com- missions of all officers employed in levying or collecting the public rev- enue shall be made out, and recorded in the Treasury Department, &c. By the act of March 2, 1799, section 1, it is provided that each col- lector shall, within three months after he enters upon the execution of his otHce; give bond, with one or more sureties, to be approved by the Comp- troller of the Treasury of the United States, and payable to the United States, Yv^ith condition for the true and faithful discharge of the duties ■of his office accordina; to law. By the act of May 15, 1820, section 3, the President may, from time to time, as in his opinion the interests of the United States may require, regulate and increase the sums for which the bonds required or which 56 Rep. No. 313. may be required by the laws of the United Slates, to be given by the collector, naval officer, &c. of customs, &c. It appears, iii proof, tiiat a record thus required by law has constituted a part of the internal organization of the First Conq)troller's odice. Its importance would be obvious, independent of the positive requisition of law. It appears, also, in proof, that a blank bond for Mr. Swartwoul's execution, with sureties, as required by law, to indemnify the Govern- ment against his unfaithful discharge of duties, was transmitted to him, whh a notice of his reappointment to oilier, on the 3d of May, 1834, by the Fn-st Comptroller. But it is in proof that with that act all further atten- tion in rL'lalion to Mr. Sv/artwout's bond, and to the record of it required by hiw, ceased, ou the part of the Comptroller, until an accident, in 1837, which owed its existence to a like neglect of law and duty by the Comp- troller in relation to another collector, betrayed the fact that Mr. Swart- wont was, and iiadbeen from his reappointment, in office without havmg furnished any bond. In House Doc. No. 69, being a report of the First Comptroller to the Secretary of the Treasury, and transmitted to tiie House in reply to a spe- cial call upon the Secretary, the Comptroller says: " I learn, fro)n the gentleman now having charge of this branch of the duties of this olfice, '(to which he was assigned on the resignation of the clerk having had this desk in the year 1835,) that the neglect of Mr. Swartwout to render this bond was accidentally discovered hy him in January, 1837, in complying- with youriiistr ictions of the loth October, 1835, in which it is made the duty of the Comptroller to advise the sarclics on tjie bonds of collectors who neglect to render their quarterly accounts in due time." George JVood, a clerk in the Treasury Department, was sworn as a witness. Examined by Mr. Smith. Quest ion 1. What office do you hold in the Treasury Department; and how long have you been in said office ? *.^nswer. I am a clerk of tiie Comptroller's office; and my duties con- sist of correspondence with the officers of the customs relating to their accounts and bonds, &.c. I was appointed in the office in 1833, and took charge of the duties now assigned me in the year 1835. Question 3. Did you find on record in your office any statement or memorandum indicating that Mr. Swartwoul's bond had ever been for- warded to him for execution ? Jlnsiuer. I did not at the time look in the record of correspondence to see if such a bond had been sent ; but that it was duly sent is shown by the handwriting in the bond, which was written by my predecessor in this clerkship. This could be shown by a reference to the records. Sincti writing the above, I find, by a reference to the records, that a letter was addressed to Mr. Swartwout on the 3d May, 1834, notifying him of his ajqiointment, and sending to him a l)lank bond and oath, which lie was instructed to transmit, when taken and executed, to the office, with the certificate of the district attorney touching the sufficiency of his sureties, for the approbation of the Comptroller. Question 4. Have you, or not, in the ComjJtroUer's office, a record-book to show what bonds have been sent in blank to collectors for execution; what bonds have been properly executed; and other particulars, to ena- ble the office to check any neglect that may occur in a collector to trans- Kep. No. 313. 57 niit his oiTicial bond? If yea, please describe the character of the entries in such record, and whether any cMtry whatever wtte made therein re- specting Mr. Swartwout's bond, until after your discovery of his remain- ing in ollice without bond, in 1837. »jinswer. There is, in the office of the Comptroller, a book which has this caption: "Record of official bonds received from the following officers;" which is ruled and headed as follows: Name. Office. District. Port. Date of commission. Bond when received. All commissions to collectors pass through the Comptroller's office. On the reception of a commission from the office of the Secretary of the Treasury, a letter is addressed to the person appointed, notifying him of his appointment, enclosing to him a blank bond and oath of office ; and an entry is then made in this record ; and when the bond is received, the date of its receipt is entered. If no bond is received within the time pre- scribed by law, he is written to, informing him that his bond was not received, and requesting its immediate transmission; if not received in a reasonable time thereafter, tlie Secretary of the Treasury is advised of the fact. On looking over thi.>- record, any failure to forward a bond is read- ily seen; but, in the case of Samuel Swan wont, no entry of his appoint- ment or of the receipt of his bond was made by my predecessor. Question 2. In reference to what particular bond in January, 1837, did the compUance with the instructions of the Secretary of the Treasury, dated the 16th of October, 1835, accidentaUy lead to the discovery that Mr. Swartwout had neglected, from the time of his af)pointment, in 1834, until 1837, to render the bond required of him by law to be rendered, for the faithful discharge of his duties as collector ? Please explain the cir- cumstances of the discovery in detail. Answer. On the 4th of January, 1837, the Auditor addressed to the Comptroller a letter, reporting that the accounts of the customs had not been received at his office for the third quarter of the year 1S3G, from the following collectors, viz : Duncan McDonald, collector at Edenton; Levi Fagin, collector at Plymouth; William H. Hunter, collector at Sandu>ky; and John Smith, surveyor at St. Louis. This letter was referred to me, to notify the sureties of said collectors of their neglect of duty, in compli- ance with the instructions of the Secretary. On referring to the files for the bonds, I could not find the bond of William II. Hunter. This was the first case which had ever occurred to me of a bond mislaid or lost. I was thereupon induced to examine the files for the bonds of all the col- lectors in office ; when Mr. Swartwout's neglect to render his bond was discovered. I immediately reported the fact to Mr. Lanb, the chief clerk; and, at his suggestion, draughted the letter addressed to him by Governor Wolf, dated the 9th of January, 1837. The next day (after the letter was sent) Mr. Swartwout came to Washington, and saw Mr. Laub, in my presence. He expressed his surprise that the bond had not been sent, and said he would, on his return, send his bond; which was received on the 23d of January, 1837. The circumstances under which Mr. Swartwout availed himself of this neglect of the Comptroller, are detailed in the following testimony: 58 Rep. No. 313. Henry Ogden was sworn as a witness. Examined by Mr. Curtis. Question 1. Were you cashier of the custom-house of New York du- ring the whole term of Mr. Swartwout ? x/inswer. I was, during the whole term of his office. Question 2. WJio were tiie sureties of Mr. Swartwout during the first term? I mean during ilie first four years he iield the office of collector. ^^nswer. Cadwallader D. Collcn, Henry Eckford, Silas K. Burrows, M. M. Quackenbos, Benjamin Birdsull, and Charles L. Livingston, were ihe sureties. Question 3. State all you know concerning the execution, approval, and delivery of the official bonds of Mr. Swartwout, both for his first, and, also, for his second term of office. ^^nsu'er. Tlie first bond was not considered as good and sufficient secu- rity by John Uuer, Esq., then the district attorney, until Mr. Burrows certified that he was worth fifty thousand dollars. It was then approved, and Mr. Swartwout entered upon his duties. The second bond was executed by Charles L. Livingston, M. M. Quackenbos, and Benjamin Birdsall. It had five or six seals to it, but no other person to my knowledge executed it. This bond remained in a trunk wliich contained all valuable papers, which was daily deposited in the bank after the closing of the office. The bond remained unexecuted until towards the close of 1S36, and, as far as I can recollect, I handed it to Mr. Swartwout soon after or the commencement of 1837. Question 4. Was the last-mentioned bond sent from the Treasury De- partment at Washhigton to New York to be executed, or was it prepared at New York ? Answer. The last bond was transmitted from Washington to be exe- cuted. Question 5. When was this bond transmitted from Washington to New York for execution ? *^^nsiver. Soon after the reappointment of Mr. Swartwout. Question 6. State, if you know, why its execution and delivery wag delayed so long ? JInswer. The bond remained imexecuted because I declined asking the gentlemen who afterwards executed it to become security for Mr. Swart- wout. Believing Mr. Swartwout to be indebted to the Government, I re- fused to a})ply to those gentlemen, but urged upon Mr. Swartwout to pay up his deficiency by a sale of his property. Mr. Swartwout himself spoke to the gentlemen who became his securities, and they applied to me for the bond to execute. An elapse of six to nine months occurred, between (he signing of the first and the last person on the bond. Question 7. How much did you consider Mr. Swartwout indebted to the Government when you declined to ask gentlemen to sign the bond as sureties ? Jinswcr. I considered Mr. Swartwout indebted to the Government from thirty to fifty thousand dollars. Question 8. When was it that you declined to ask gentlemen to sign the bond for the reason you have mentioned. Ansioer. It M'as 1634, and after that year, that I declined asking the gentlemen. 1 licld the bond about three years before I handed it to Mr* Rep. No. 313. 59 Swartwout to deliver to Mr. Price, tlie United States district attorney. It was tlien executed. No palliation of such negligence has been seen or offered in any cn-- cumstance or proof that has come to the knowledge of the committee; and, indeed, it seems to be a case which, from its nature, admits of no pallia- tion. It is, moreover, obvious that when Mr. Swartwout's bond was finally received, no comparison of it was instituted with his former one, or other information sought respecting it, beyond the certificate of the dis- trict attorney, to secure to it the approval of the Comptroller. It is not diffi- cult to suppose that the Dep^irtment felt inclined to compromise with an apparent insufficiency of the bond, rather than to excite an inquiry that would probably lead to an exposure of its own culpable negligence in regard to it. Had it, however, been compared with the former bond, it must have been discovered that, while on the former six sureties were given, on the latter only ha/f that number had been furnished. One would suppose that such a comparison, in the exercise of due diligence, Avould have been instituted ; and, if instituted, such a falling off of sureties would have called for explanation. Had explanation been sought, it is ap- parent that the three sureties actually furnislied would not have been found entitled to the approval of the bond by the Comptroller, as the bond was to serve as the whole reUance of the Government for indemnity against a faithless discharge of duty by a collector through whose hands and under whose control nearly two-thirds of the whole revenue of the Government must pass. The following additional testimony from Mr. Ogden warrants the conclusions thus drawn : Examined by Mr. Wise. Question 40. Were the three securities to the last bond of Mr. Swart- wout equal in point of wealth and responsibility to the three who were their co-securities on his first bond ; if not, what was the probable differ- ence ? * Answer. The sureties in the last bond, in point of wealth and respon- sibilty,bore no comparison to the first. The only person of actual wealth on the last bond was Mr. Quackenbos, who was estimated, I believe, worth from fifty to seventy-five thousand dollars. Mr. Birdsall I never considered worth over g 10,000 ; and Mr. Livingston has nothing. Those on the other bond were much more wealthy. Mr. Eckford died worth nearly half a million of dollars Mr. Barrows qualified upon signing the bond that he was worth S50,000. Mr. Colden when he died left but Ut- tle, though at the time he executed the bond he was estimated at over 1^50,000.^ There is yet another feature of extraordinary disregard of the require- ments of law and neglect of duty of still' later date on the part of the Comptroller towards Mr. Swartwout's accounts. By the act o( January 31, 1823, sec. 3, it is required that every ofHcei or agent of the United States who shall receive public money, which he is not authorized to retain as salary, pay, or emolument, shall render his accounts quarter-yearly to the proper accounting officers of the Treasury, with vouchers necessary to the correct and prompt settlement thereof. 60 «ep. No. 313. xcithin three months at least after the expiration of each successive quartcr,,[i' rvi^ident within the United States. , By the act of March 2, 1799, sec. 21, every collector, naval ofilcer, &.C., who shall refuse to render his accounts for settlement for the term of tliree months after ihcy have been required by the proper officer, is subject to fine, &r. By act of Marcli 3, 1795, sec. 3, it is provided that if any collector of the revenue, &.C., who shall have received the public money before it has been paid into the Treasury, shall fail to render his account or pay over the same in the manner or within the time required by law, it shall be the duty of the First Comptroller to cause 'to be stated the account of such collector, «§r., exhibiting truly the amount due to the United States, and cerlil'y the same to the ligent [Solicitor] of the Treasury, Avho shall issue a warrant of distreiis against .such delinquent officer and his sureties, &.c. It ai)pears by the certificate of the Comptroller (in committee journal) that the third quarter of Mr. Swartwoui's account for 1S37 was settled at the Comptroller's office on the 8th of JSIay, 1S3S, and a balance found due from him of §10,207,224 10, as follows :" Bonds not due ------ ^^7,246,207 91 Bonds in suit -.--._ 2,196,364 62 Deposite bonds - - - - ' - - 45,851 73 Cash, including sundry items not to his credit - - 7-o8,799 84 ^10,227,224 10 It appears that his fourth quarter for 1S37 was adjusted at the Treas- ury on the 21st of June, 1838, and a balance found due the Government of ^9,678,984 56, as follows: Bonds not due ------ i56,777,101 55 Deposite bonds ------ 23,864 12 Bonds in suit ------ 2,231^20 55 Cash on liand, including sundry items not yet to his credit 646,698 34 ^9,678,984 56 In the examination of Mr. Barker, (the Comptroller,) by Mr. Smith, he says, in reply to — Question 12. At what date did the-time allowed by law for Mr. Swart- wont to render his accounts to the First Auditor, ibr his quarter ending March 28, 183S, expire ? ».lnstrer. The accounts were due on the 1st .Tuly, according to law. I am intormed, in the First Auditor's office, that the coUector of the port of New York has, by a former Secretary of the Treasury, been allowed one or two weeks in addition, within which to render his accounts. And, in examination by Mr. Foster, he says, in "reply to — Question 18. Did you, at any time previous to November last, inform the Socrelary of the Trea.sury tliat Mr. Swartwout was a defaulter ; or did yon know or su^jject that he was a defaulter, or that his accounts were fraudidently niade out, until about the 1. 1 of November lust ? •Answer. 1 knew, in April, 1838, that Mr. Sw?rtwout held in his hands Sep. ^0. 313. 61 the sum of about ^201,000, which he refused or neglected to pay. In no other particular was I acquainted with any dcfiult of Mr. Swartwout, until about the 1st of November last. Queslion 19. Did not Mr. Swartwout cl^^im that iie was entitled to re- tain the sS201,000 mfnitioned in yourhjst answer, in order to enable him to pay the claims whicli he alleges the merchants had against him as col- lector } t^nsiver. lie did. Question 20. Were you not aware that Mr. Swartwout was liable to refund money to merchants, in some instances, when the same had been, received under protest ; and wlien he explained the reason why lie re- tained the $201,000, did you not suppose that tliat sum was all he had upon which the Government had any claim ; and had you any reason then to believe that he would not pay over to the Treasurer so much thereof as should remain, after repaying to the merchants the amount of their legal claims upon him ? */inswe7\ I was aware that Mr. Swartwout might be liable to refund money to merchants, for duties paid on protest. I had not, at that time, any means of forming an opinion as to his intention or ability to pay over to the Treasurer so much of the >^20 1,000 referred to, as should remain after repaying to the merchants the amount of their legal claims upon him. At the time the correspondence took place between the Department and Mr. Swartwout, his accounls not being finally adjusted, I had no means of knowing or forming an opinion as to the sum which might eventually be due from him to the Government. The manner in which the fact stated in the above testimony came to the knowledge of the Comptroller, in April, appears from the foUovv^ing correspondence : Treasury Department, April 16, 1838. Sir : You will perceive, by the enclosed copy of a letter addressed to the Department by Samuel Swartwout, Esq., late collector of the district of New York, under date of the 13th instant, that he has in his hands a balance of public money amounting to ^201,096 40, which he holds until his accounts shall have been adjusted. I will thank you, therefore, to take all proper steps to have his accounts adjusted and settled at as early a period as may be practicable, and to have the balance not in dispute, or to cover what is in dispute, soon as- certained and paid over. I am, Sec. LEVI WOODBURY, Secretai^y of the. Treasury. James N. Barker, Esq., Comptroller of Hie Treasury. Tlie letter from Mr. Swartwout to Mr. Woodbury (enclosed in the above letter) is as follows : CusTOM-iiousE, New York, Spril 13, 1838. Sir : Herewith you will receive the return of moneys received and paid at this office, for the last three days of my official term. 62 Rep. No. 313. By it you will observe there is a balance due the United States of $201,096 10. This sum I hold in deposite in bank to my order, subject to the settlement of my account, and the decision of sundry suits at law brought against me to recover duties wrongfuHy exacted, (as is alleged,) and which are now pending in the courts. On the adjustment of my accounts, the amount due to the Government will be immediately paid. I have the honor, &c., SAMUEL SWARTWOUT, late CoWr. ilon. Levi Woodbury, Secretary of the Treasury. The steps taken by Mr. Barker, on the receipt of the preceding letters, appear from the following letter : Treasury Department, Comjjt roller's Office, ,'lpril 17, 1838. Sir: I have the honor to enclose a copy of a letter received this day from the honorable Secretary of the Treasury, requesting an early settle- ment of the accounts of the late collector at New York. With great respect, your obedient servant, J. N. BARKER, Comptroller. Hon. Jesse Miller, First Auditor of the Treasury. To Mr. Swart.wout the Comptroller wrote as follows: Treasury Depaiitment, Comptroller's Office, April 17, 1838. Sir: In order to a compliance, on the part of the Treasury, with a re- quest contained in your letter of the 13th instant, for an early settlement of your accounts, you will please to transmit to the First Auditor your ac- counts up to the date of the transfer of your books to your successor. The accounts of the third quarter are in progress of revision in this office, andlhosc of the fourth quarter, 1S37, are now in hand in the oflice of the Auditor. Very respeclfullv, your obedient servant, J. N. BARKER, Comptroller. Samuel Swautwout, Esq., Late collector, New York. ^ Another letter was received by the Conq)lrollcr, as follows: Treasury Department, .'7y?ri7 18, 1838. Sir: Accompanying my letter of yesterday, urging an early adjustment of the accounts of Samuel Swartwout, Esq., late collector of New York, I transmitted a copy of a letter from I'.iu), staling his reasons for retaining in his hands the large balance of puhlic moneys mentioned. One reason he declared to be, with the view to await "the decision of sundry suits at law brought against me [him] to recover duties wrongfully exacted, as is alleged, and wliich are now pending in the courts.*' To expedite matters in this case, I will thank you to call upon the So- Rep. No. 313. 63 licitor of the Treasury, to obtain from the district attorney in New York a list of the suits now pending against Mr. Swartwout, as late collector, together with the amount of money involved in each, and the probable termination of them. I am, &c. L. WOODBURY, James N. Barker, Esq., Secretary of the Trcasui^y. Comptroller of the Treasury. On the same day the Comptroller forwarded the last preceding letter to the Solicitor, endorsed as follows : Respectfully referred to the Solicitor of the Treasury, who will be pleased, after addressing the attorney on the subject, to return this, and Advise this office of the result of the inquiry. J. N. BARKER. Comptroller's Office, April 18. On the 23d of April, the Comptroller was written the following addi- tional letter by the Secretary : Treasury Department, April 23, 1838. Sir: I herewith refer to you a letter, and enclosures, just received from Samuel Swartwout, Esq., late collector of the district of New York, and should be pleased to have a report upon the subject to which it alludes, so soon as you hear from the United States district attorney. I would suggest that, as the collector is refunding duties imposed on (iertain articles of merchandise, which were paid under protest of the par- ties at the time, it consequently becomes proper that Mr, Swartwout should furnish Mr. Hoyt with money, out of the funds now in his hands, to meet payments in this class of cases, and sliould be so instructed. I am, very respectfully, your obedient servant, LEVI WOODBURY, James N. Barker, Esq., Secretary of the Treasury. Comp tr oiler, IVash ingto n. The letter thus enclosed by the Secretary from Mr. Swartwout was as follows : New York, April 21, 1S3S. Sir : I have the honor to state, in reply to your letter of the 16th in- stant, that, although the balance in my hands appears to be very large, it will not be more than sullicient for the settlement of the outstanding claims upon me. I enclose a letter received yesterday from the district attorney, showing my individual liability for the judgments obtained against me. I received notice from Mr. Lord yesterday that he would issue execution against my furniture, unless I paid the amount of the several judgments forthwith. I paid, of course. The next court will pass upon twice as large an amount. The notices of protest served upon me for duties paid and passed to the credit of the Treasury, are estimated at between $200,000 and J?300,000, and the circuit court decided that the collector, being alone liable, ought •not to pay the duties into the Treasury. In addition to these immense 64 Hep. No. 313. liabilities, (li(3 settlement of damages, when the parties have paid full duties on damage d goods, which cannot be adjusted by the prcsLMit collector, must take a large sum, and canuot all be brought in under three months. I hope, therefore, that you will not consider the present balance in my hands at all unreasonable. I am, kc. SAMUEL SWARTWOUT. Hon. Levi Woodbuky, Secretary of the Treasury , fFashington. Upon the receipt of the foregoing, the Comptroller addressed Mr. Swart- wout as follows : Treasury Department, Comptroller's Office, *^pril 2A, 1838. Sir : The Secretary of the Treasury has referred to me your letter of the 21st instant, explanatory of the large balance of public moneys re- tained in your hands. Your successor having been instructed to refund duties on certain ar- ticles of merchandise imposed, and paid by the xxw'poYicrs. iii^der protest at the time, it is necessary that you should furnish him with funds to meet the payments in this class of cases. This direction is given at the instance of tlie Secretary of the Treasury. I am, very respectfully, your most obedient servant, .J. N. BARKER, Comptroller. Samuel Swartwout, Esq., Late Collector, New York. In reply to the Comptroller's endorsement to the Solichor of the Secre- tary's letter of the 18th of April, given in the preceding, the Solicitor wrote to the Comptroller as follows : Office of the Solicitor of the Treasury, April 21, 1838. Sir : I have had the honor to receive the letter of the Secretary of the Treasury to you, dated the ISth instant, and referred by you to this oilice. I transmitted a copy of it to the attorney of the United States for the southern district of i\ew York, and have received a reply, dated 25th instant, of which I send a copy herewith. On receiving the further report to which Mr. Price refers, it shall bo communicated to you. Very respectfully, yours, &.c. IL I). GILPIN, Solicitor of the Treasury. To J. N. liAKKER, Esq., Comptroller of the Treasury. The letter thus enclosed by the Solicitor is as follows: Umtei) States District Attorney's Office, New York, April 25, 1838. Sir: I have the honor to acknowledge the receipt of your letter of the 19th instant, enclosing a copy of a letter addressed by the Secretary of the Treasury to James N. Barker, E.sq., Comptroller, and by the latter Rep. No. 313. 65 gentleman communicated to your office, calling for a statement of suits now pending in this district against Sanuiol Svvartwout, Esq., late collect- or of the port of New York, to recover duties levied by him, which are alleged to have been wrongfully exacted, together '''with the amount of money in each case, and the probable termiuation of them." By reference to my register, I find that there are at present but two suits pending, undecided. One brought by Robert Deidericks, to recover the value of a package of goods sent to the ])ublic store for examination^ and there lost or mislaid. In this case the damages are laid at J§2,000, though the recovery will not probably exceed half that sum. The plain- tiii' will certainly prevail. In the other suit, Lee, Savage, &: Co., are plaintiffs, who claim to re- cover Si 58 SO, being an excess of duties charged at 25 per cent, ad va- loreyn, on a case of silk gloves, which they contend are free of duty. At the term of the United States circuit court commencing on the first Monday of the present month, four judgments were recovered against Mr. Swartwout : three by John Charters, Alexander Charters, and Samuel M. Charters, and one by Aaron Thomson, John H. Austen, and Thomas Cochran ; in the aggregate amounting to i55,561 63, yet unsatisfied; being for an excess of duties charged on certain linens, which were reported by the appraisers as having been died or colored, but were, on the trials, proved to have been known in commerce as unbleached linens. I have in my possession 115 protests served on the late collector by- various merchants in this city, against the payment of duties, giving him notice that they intend to commence suits to recover back the amount of duties thus paid. Not having sufficient data, I am unable to ascertain the amount of duties involved in those protests ; nor can I anticipate with certainty what v/ill be the result of suits that may be brought, of which the importers have given notice. The protests to which I have referred present a great variety of ques- tions, all relating to excess of duties ; many claiming as high a return as 5C per cent. ; others a return of but small per centage ; and others, again, a reduction of duties in various amounts. On an examination of the in- voices and appraisements at the custom-house, in reference to the ques- tions presented by the protests, the amount of each claim can be readily ascertained. I will apply to the present collector for such statement, and transmit it to you upon my receipt thereof. It will, however, require several days to prepare such a document. By the protests it appears that there are 660 packages of linens, blan- kets, silk, hosiery, worsted, and other articles, on which a return of duty is claimed. As the questions involved in many of t'le protests have been adjudica- ted, (as, for instance, the worsted, linens, and silks,) the importers will of course pursue their claims without much delay. I am, &c. WM. M. PRICE, U. S. District Altorney. To Henry D. Gilpin, Esq., Solicitor of the Treasury, JVushiiigton. 66 Rep. No. 313. The next proceeding of the Comptroller was to address Mr. SwartwoiU the following letter: Treasurv Department, Comptroller's Office, Jlpril 26, 1838. Sib : Yon are respectfully requested to render your accounts of the customs to the First Auditor at as early a period as may be practicable. Very respectfully, your obedient servant, J. N. BARKER, Comptroller. Samuel Swartwout, Esq. Late Collector, New York. With the last letter ended all correspondence between the Comptroller and the other departments of the Treasury, as also between him and Mr. Swartwout, on the subject of either the i§201,000 retained by him, or the settlement of his accounts generally. The man and his accounts seem, in fact, to have been lost sight of by the Comptroller from that period for four succeeding months, and until he received the following letter from the First Auditor : " • ' Treasury Department, First Auditor's Office, .iugnst 31, 1838. Sir : I deem it proper to report to you that the accounts of the customs for the district of New York, for the first quarter of the present year, have not been received at this olhce. I wrote to Samuel Swartwout, Esq., late collector for that district, on the 13th instant, requesting him to forward said accounts so soon as practicable. Since then, I have received no com- munication from liim on the subject. Very respectfully, your obedient servant, i. MW.l.llW, First Auditor. James N. Barker, Esq. Comptroller of the Treasury. This admonition, in the course of three days, roused the animation of the Comptroller's department to notify Mr. Swart wont's sureties as follows: Treasuiiy Department, First Comptroller's Offiice, Scpteml)er 3, 1838. Sir : In compliance with a regulation of the Secretary of the Treasury, I have to notify you, as one of the sureties of Samuel Swartwout, late collector at New York, that he has not rendered his accounts of the cus- toms for the quarter ending 31.st March last. Respectfully, J. N. BARKER, Comptroller. Charles L. Livingston, Esq., ^ Benjamin Birdsall, Esq., and ^ city of New York. M. M. QlTACKENROS, Esq., ) But again the Department fell into a dead slumber relative to Mr. Swartwout 's accounts, from whicli it was not awakened until in the early part of November, over seven months after Mr. Swartwout had retired Rep. No. 313. 67 from office, and over four months after the return day of Mr. Swartwout's last quarter's account had expired without having been returned, and two months after liis sureties liad been notified of his neglect to return and settle his accounts. From April until tlie 31st of August, a period of four months, Mr. Swartwout, though known to be holding a large amount of public money, and no longer an officer of Government, was not disturbed by even a call from the Comptroller to settle, or explain his neglect to settle his accounts. Yet, on the adjustment of tliis collector's accounts in the mean time, viz: June 21, 1838, for the quarter preceding his last quarter, the Comptroller knew the balance of bonds, cash, and unsettled accounts against the col- lector was nine millions six hundred thousand dollars, and upwards. On tire 1st of July the Comptroller knew, or should have known, but for extraordinary inattention and neglect of duty, that the time for ren- dering and settling Mr. Swartwout's accounts had expired; and that by the act of March 3, 1795, it had become his express duty to cause Swartwout's accounts to be stated, and to issue a warrant against him and his sureties. But no steps were taken by him to even obtain any explanation or set- tlement of even the acknowledged balance of ^201,000, which Swart- wout had reported as in his hands unsettled. He had seen that, by all in- formation from the district attorney at New York, obtained through the Solicitor in April, only two suits were pending against Swartwout to offset his retention of the ^201,000, and tliat in those suits the aggregate judg- ment would be less than ^^1,200. By the same letter of the district at- torney, given in the preceding correspondence, and dated April 25, 1838, was also informed that "o;z an examination of the invoices and appraise- ments at the cnstom-house, in reference to the questions presented by the protests, the amount of each claim can be readily ascertained,''^ show- ing the precise aggregate for which Swartwout had any pretensions for retaining the i§201,000; and yet no application was made at that early day, or after Swartwout's return-day of accounts had silently expired, on the 1st of July, to obtain from tlie custom-house invoices and appraise- ments, the most obviously essential information. Why so much active bustle was made on the part of the Comptroller in April, through the Au- ditor and through the Solicitor; and why, after the results at that early day, pointed to information which'could "6e readily ascertained" to solve all pretended doubts hanging over Mr. Swartwout's accounts then, of a sud- den all exerti(i}is ceased and every etibrt was paralyzed, to remain so until the last day of August, and then to be renewed but in the faintness of a spiritless Ibrm of notifying Swartwout's sureties, is to the committee in- explicable, insomuch that even the conclusion of culpable negligence seems scarcely to represent correctly the whole truth. p]ven the Secreta- ry of the Treasury appearsJo have felt sensible of the Comptroller's ne- glect of law and duty. In answer to question 33 by Mr. Curtis, the Sec- retary says: '■^Jlnsiver. I considered, as before remarked, according to my own im- pressions, that the Comptroller might, under all the circumstances, be jus- tified in 'a short delay.' By that I supposed it would be a delay long enough to get the further information, previously mentioned, from the dis- trict attorney, as to the amount of protests, &c., and to decide whether there was any legal reason for waiting any longer than the acts of Con- gress point oiit, before bringing the collector's accounts to a final settle- 68 Rep. No. 313. ment, and to a collection of all not in controversy or doubt. On these ' points I supposed he would act according to his own sense of duty under the laws, and not expect any special instructions from the Secretary, as none such are required by the laws. I h id already given the general di- rections, or made the general request before mentioned ; not because they were required by any acts of Congress, or were usual to be given when collectors quit oliice, as it is the duty of the Comptroller, in such cases, to proceed to make settlements, and require collections without such instruc- tions; but I gave them for the reasons stated, in substance, in the special report, viz : that the amount on hand, as stated in the last return of the collector, appeared unexpectedly large; and the explanation given in re- spect to it by the collector alone, did not seem to me entirely satisfactory without further inquiry into the subject by the Comptroller. '•I took no further steps in relation to the subject mysell, as the business belonged to different officers of the Department : first, the accounting offi- cers, to ascertain what was due ; and then the Solicitor, through the district attorney, to cause the balance to be secured and collected after the Comp- troller reported it to him in conformity to the existing laws." To say that there was absence of suspicioji on the part of tlie Comp- troller in regard to Mr. Swartwout's accounts, appears to involve a most negligent and obvious disregard of every fact that transpired between April and November, relative to those accounts. And, besides, want of sus- picion of infidelity in the collector's accounts could furnish no excuse for a known neglect of the law requiring their return to the Department. There must have been not only suspicion, but actual knowledge, by the Comptroller, from the 1st of July onwards, that the law had been violated in tiie non-return for settlement of this important account. Even the newness of the Comptroller in his office furnishes no apology in this re- spect as, to take the office of Comptroller, he had just left the collector- ship of Philadelphia, where the law must have been made familiar to him enjoining the return for settlement within three months of all collectors^ accounts. In whatever light viewed, the case exhibits extraordinary in- efficiency and neglect of duty, if not a mystery also, which the connnit- tee have been unable to solve. The law and duties of this important office have not been executed as the nation had reason to expect and believe they were; and the public money has consequently been unguarded and plundered with impunity. In yet another aspect, the inefficiency of tlie Comptroller's department, as at present administered, has been most singularly manifested. A searching scrutiny was made by the Comptroller and Solicitor of the Trea.sury, at New York, into the causes why Mr. Swartwout's defalca- tions escaped the immediate detection of the naval officer at New York. They found it to bo altril)utable, in tlic first instance, to the want of a proper execution of the duties of that office, and came to the conclusion that new instructions were necessary to render the office an efficient check upon the collector's accounts. Immediately thereafter, on the 10th of November, as soon as the Comptroller had returned to Washington, he began to issue his new instructions, in the shape of circulars to the naval olficer. First, as wiil appear by reference to the documents im- bodied in the testimony of Mr. (Joe, deputy naval officer at New York, (connnittee's journal,) the C(;mptroller issued what was named by him *' Partial Circular,''^ dated November 10, 1S38 ; on the same day an- Rep. No. 313. 69 other, which he denominated •* Circular.'''' On the 15th of the same month, he issued another, styled by him '• Circular to naval officers.'' On the 17lh he issued another, cahed " Supplcinental circular to naval officers.-' On the '1th, and again on the 24th of December, as will also be seen, the naval oflicer wrote the Comptroller, in effect, that his par- tial supplemental and other circulars were impracticable, and asked for explanations, &c. On the a7tli, the Comptroller wrote, in reply, that, " by to-morrow's mail yon will be furnished witli instructions as to the manner in which yon are to proceed," &c. And, accordingly, on the 26th of De- cember, another effort was made, nnder the caption of " Circular to naval officers.''' Whether, in the mean time, any new light was shed or not by the naval officer upon the Comyitroller's administration of his office, in the shape of a new exposure of the impracticability and inapplicability of the latter doctmient, does not appear of record. It appears, however, that on the 2d of January, the Comptroller wrote him a letter, in the nature of a suspension of the last circular, tints: " IJefore the arrangements are con- cluded lor maku.g the examinations as directed in my letter of the 26th ultimo, it is deemed necessary by the Secretary of the I'reasury that yon should make to the Department some specific reconnnendation in regard to the rate of increase proposed to be made to the compensation of the respective clerks who are to be employed in that duty. You will please, therefore, furnish nic with the requisite inforn^ation." On the 1 4th of January, the naval officer infortns ihe Comptroller, in regard to his new theory of discharging the duties of naval officer, ira- bodied in liis midtiphcity (tf circrJars, &:c., as follows : "■ I am of the opinion that it will require at least six of the clerks in the naval office to discharge those extra duties, whi'e, at the same time, they will be expected to perform the ordinary duties which they have been and are now performing ;" and proposes the siim of ^§2,000 addi- tional compensation. On the 7th of February, in t!ie examination of the deputy naval officer before the committee, with the preceding "partial circular," '• circular,*' "circular to naval officers" of December 15, "supplemental circular to naval officers," and "circular to naval officers" of December 26, before the witness, he was interrogated by Mr. Smith, and answered as follows: Question 6. Under ?/te existing system of the naval office, is the naval officer enabled to determine, either what amount, of bonds have been taken by the collector for duties, in any quarter, or who arc parties to said bonds, or the dates of such bonds, or v/hen they are payable, or when any such bonds are paid, or whether the collector does or not account truly for bonds that have been paid ? */inswer. In answer to the sixth interrogatory I have to state, that the naval office, under its existing system, is not enabled either to determine what amount of bonds have been taken by the collector for duties, in any quarter, or who are the parties to said bonds, or the dates of said bonds, or when they are payable, or when such bonds are paid, or whether tl.'e <:ollector docs or does not account truly for .-n<."h bonds. Such recorded specimens of inelficiency v^'onld scerri to indicate that? whether the Comptroller be attentive or neghgent to the duties of his office, the Government must remain equally exposed to the frauds and peculations of a dishonest collector at tlie port of New York. And yet the law of 1799, defining the records and checks upon the collector; whick 70 Rep. No. 313. shall be kept in the naval oliice is so plain that the Comptroller himself^ when looking at the law, and apart from his own propose:! mode of ex- ecuting it, was constrained to say in his circular to naval officers under date of December 15, after reciting the language of the law: "Had the books designated above been kept, and the quarterly examinations and comparisons been duly made by the naval olticer, it is scarcely possible the defalcations in the accounts of the late collector at New York (S. Swartwout) could have taken place, or so long escaped detection." The committee believe that the Mouse and country will alike readily discern the only proper remedy which such an exposition of facts and feebleness imperiously demands, as also tlie quarter whence it must pro- ceed. From the preceding evidence the committee report the following facts as established : 1st. That the late Comptroller of the Treasury, George Wolf, Esq., now collector of the port of Philadelphia, was guilty, while in said office of Comptroller, of culpable disregard of law and neglect of duty, both in regard to' the bonds of collectors filed in his office, and the records thereof required by law; and in settling and certifying to the Register the accounts of Samuel Swartwout, late collector, without having transmitted to him the voucliers therefor required by positive injunction of law. 2d. That the present Comptroller of the Treasury has been guilty of culpable disregard of law and neglect of duty, iti settling and certifying to the Register the quarterly accounts of Samuel Swartwout, collector, without having transmitted to him the vouchers therefor required l)y posi- tive injunction of law. 3d. Thiit said Conq)troller is also guilty of culpable disregard of law and neglect of duty : first, in not having sought and ascertained from the " in- voices andappraisements" at the custom-house at New York, cither tjirougli the Solicitor of the Treasury or otherwise, the true amount of S wartwout's claim upon the $201,000 retained by him on going out of office, as sug- gested in the letter of the district attorney that was before him, dated April 25, 183S ; secondly, in not causing the accounts of said Swartwout to be forthwith stated, or instituting measures therefor immediately on the neglect of said Swartwout to return and settle his accounts at the expira- tion of the time allowed him by law for the purpose, to wit, in the early part of July, 1838 ; thirdly, in continuing the same neglect, and to Issue ■warrants of distress against said Swartwout and his sureties, from the 31st of August, 1838, when it appeared by thii letter of the First Auditor that .said accounts still remained unsettled, until the month of November, when the detection of Swartwout's larger defalcations was communicated from New Yurk. 4th. Tiiat the administration of said office is marked with such signal inefficiency, as well as neglect of duty, as to render nugatory many of the most important checks upon the F'irst Auditor, and collectors, receivers, and disbursers of the public money, which the laws creating and regula- ting its duties contem[)latecl, and have sufficiently provided. 5th. That, in said disregard of law and neglect of duty by the said Comp- trollers, and inefficiency of the office as now administered, is to be found a primary cause of the immense defalcations of the late collector at the- port of New York, and consequent loss of the public money. Rep. No. 313. 71 Cause 5. — The discniitiniiance of the use of banks as depositories of the public moneys, and permitting the same to accu?7itilate in the hands of Mr. Sivartivout. By ihc depositc act of 1S3G, as construed by the frequent practice of tlie Secretary ot the Treasury, tlie Secretary has been at no time preclu- ded from the use of banks as special depositories of the public money, in preference to allowing the same to accumulate in the hands of the collector. For instance, as appears by the testimony of the cashiers of the Bank of America and of the Manhattan Company, each of those banks was used as a special dep-ository of the Govennnent for large sums during the period of their suspension of specie payments. All banks might have been, in like manner, so used. It appears, further, from the testimony of Mr. Woodbury, answer 38, that, during the suspension of specie i)ayments, circulars were issued, "ift substance, that, where no general deposite banks remained, that could be legally employed as such, the collecting officers might place the surplus of their funds, if increasing beyond certain specified amounts, not exceed- ing their official bond?, in some safe bank, in special deposite, to be drawn out again only on drafts of the Treasurer, placed on the collectors and re- ceivers and payable at that bank." Had the Secretary of the Treasury, instead of discontinuing the use of banks, and leaving it discretionary with the collector to deposite, or not, specially in bank, made it imperative on collectors and receivers thus to have used banks, the evidence, weekly, of the collectors' deposite in bank would have accompanied the collector's own return of the fact that the money was on hand, and had not been used. When, however, this spe- cies of check upon tlie collector was abandoned, the return of thecoll^ector alone was necessarily relied on ; and, although it did state truly the amount of money collected, it would fail to be evidence of satisfactory cliaracter that it had not been diverted from public to private uses bj^' the collector. The following testimony illustrates the evident loss of a portion of the public money to the Government in the case of Mr. Swartwout, from the deception he was enabled to practise from week to week respect- ing the money actually on hand, by means of the power he had of retain- ing it in his own personal confrol, instead of depositmg it in bank. Mr. FIe?ning, auditor of customs, examined by Mr. Smith. Question 111. Did you make out the weekly cash return of Mr. Swart- wout to the Secretary of the Treasury, bringing the account up to March 28, 183S, as found in House document 13, p. 11, and showing a balance of money due on cash account of S30l,096 40? Was said balance the true result and state of that branch of Mr. Swart wout's accounts? and did he, in truth, have on hand, within your knowledge, any such amount of money at the time said account was rendered ? ,/lnswer. The said weekly cash return ivas made out by me. The bal- ance of $201,096 40 was the true result and state of that account, provi ded tlie cash book from which the data were derived was correct. Whether Mr. Swartwout had on hand that amount of money at the time the ac- count was rendered, I am unable to state, having no knowledge of that portion of his business. 72 Rep. No. 313. Question 112. Previous to the discoiitiiinance of banks as general de- positories of the Government by the Treasury Department, were, or were not, certificates of the cashiers of the banks used as depositories required by the Treasury Department to accompany tiie weekly cash accounts ren- dered by ]\Jr. Swartwout to said Department, and as vouchers of the ac- count, and that the money was, in fact, on hand ? Since such discontinu- ance of the use of banks as depositories by the Treasury Department, has any species of voucher been required to be furnished in connexion with the weekly returns of the collector, to prove that the money reported to be on hand was so in fact ? Jlnswer. Previous to the discontinuance of banks by the Treasury De- partment, certificates from them were required to accompany the weekly returns, as voucliers for the transfer, and that the money was in bank. Since such discontinuance, I know of no species of voucher required by the Treasury Department to, be furnished in connexion with the weekly returns, to denote that the balance of money reported was, in fact, on hand. It is, then, apparent that, had the depositing system of banks been con- tiimed, Mr. Swartwout could not have had money, beyond the collections of a single week, exceeding the current expenses of his olfice, to have re- tained on going out of office ; and the evidence of his not having diverted any previous to that time, and t!;at all previous collections were in bank, ■would have been n^gularly derived from the banks, as well as in Mr. Swart- wout 's ofiicial returns. Cause 6. — The negligence and failure af the Secretary nf the Treasury to discharge his duty, as the head of the Treasxiry Department, charged by laic ivith the superintendence of the collection, of the revenue. By the act of September 2, 17S9, section 2, it is made " the duty of the Secretary of the Treasury to digest and prepare plans for the improve- ment and management of the revenue, and for the support of public credit ; to prepare and report estimates of the public revenue and the public expenditures; to superintend the collection of the revenue; to decide on the forms of keeping and stating accounts, and making re- turns, ^^ ^'C. By the act of May 8, 1792, section G, it is provided "that the Secre- tary of the Treasury shall direct the superintendence of the collection of the duties on impost and tonnage, as he shall judge best ;" and by section 9 of the same act, *• that the forms of keeping and rendering all pub- lic accounts whatsoever shall be prescribed by llie Department of the Treasury." By virtue of section 6 of the above-recited act, it appears, in the fol- lowing extract of a circular of the Secretary, that froin tjienccforward the duties originally confided to the Secretary were in part assigned to the Comptroller, to wit; " Circular to the collectors of the customs. " TijEAsuRV Department, " October 25, 1792. " Sin : Pursuant to t!ie discretion vested in me by t!ie Gth section of the act entitled ' An act making ulterations in the Treasurjr and War Depart- ments,' I have concluded to commit the immediate superintendence of Hep. No. 313. 73 the collection of the duties of imports and tonnage to the Comptroller of tlie 'J'reasury. I " You will, therefore, henceforth correspond with that officer relatively to all matters ariising out of the laws which respect the laying or collect- ing of those duiics; and you will consider his conmiuuicalions and in- stiuciions, in regard to such matters, as of the same force and validity which they would have if coming trom me. " Thi^;, however, is not to be understood to comprehend tlje disposition and payment of the moneys accruing from tliose duties, which, as here- tofore, will be under my immediate direction. "Accordingly, all the returns and documents which you have been ac- customed to traiistnit to ilie Secretary of the Treasury are hereafter to be transmitted to the Comptroller, except the following: 1. Weekly return o[ moneys received and paid ; 2. Monthly schedule of bonds; 3. Monthly abstract of bonds unpaid ; 4. Paid drafts, and receipts for moneys paid to banks, and otherwise, under special directions from me." Through all periods since 1792, as well as before, and from the first or- ganization of the Tre.isury Departaient undin* the act of 1789, the weekly and monthly reiuriis of collectors, expressly reserved to the Secretary in the above circular, have been required to be made to the Secretary, and have been sj made. Whatever may be the construction of modern days, of the use or utility of these reiurns to the Secretary, it is, beyond dispute, an established fact, that they originated in the wise purpose of placing that officer in pos- session of a ready and constant check, and independent of all other de- partments, upon all officers employed to receive public moneys; and, also, upon the Treasurer having the moneys in keeping after the same have been paid over by the former. For a correct exf)onent of the purposes of these weekly and monthly returns, nearly concurrent with their origin, the committee have reverted to a report ir'.ade to the linuse of Representatives in January, 1801, by a committee appointed to inquire into the condition of the Treasury De- partment, and in which it is said " the actual amount of moneys in the custody of the Treasurer may be at any time ascertained, independently of his own returns, by the statements which are constantly made and transmitted to the Secretwy by those who collect and receive public moneys into their custody in the different parts of the ITnion." The importance in which these returns were held in other days by the heads of the Treasury Department, may be also seen in the constant rep- etition of circulars issued to collectors and receivers of public money, en- joining particularity and punctuality in the transmission of them. The foUowmg may be taken as an example of the estimation of them that has prevailed from the days of Jefierson downward: CIRCULAR. Treasury Department, Jhtgust 20, 1801. Sir: At the same lime that the punctuality manifested by the greater number of the collectors is acknowledged with real satisfaction, the re- missness discoverable in others renders it incnmbeiU on me to impress on the minds of all the absolute necessity of conforming to those regulations 6 74 Kep. No. 313. which have been heretofore prescribed, either by law or by this Depart- ment. Of those, a punctual transmission of accounts to the Comptroller of the Treasury lor settlement, pursuant to the twenty-first section of the collection law, is doomed to be of the first importance; and the President has accordingly dirccied me to say, that a rigid adherence to the regula- tion of rendering each quarterly account, previously to the expiration of the next ensuii:g quarter, shall hereafter be considered as indispensably necessary. The documents to be forwarded to (his office particularly, and which you arc requested to render with punctuality, are as follows: A weekly return of moneys received and paid by you. On this it is necessary, on account of the forms observed by some of the collectors, to request: 1st. That the return should bear date regularly the last day of the week, and should include only tlie whole of the receipts and pay- ments for tlie entire week, the said last day included. 2d. That it should regularly be transmitted by the mail next ensuing the day on which it is stated. 3d. That the moneys received for bonds paid on the week when they became due, for bonds paid after liaving been put in suit, for duties on merchandise paid at the time of importation, and for duties on tonnage, should respectively be distinguished from each other, and also from moneys received on any other account. 4th. That the payments made in the Treasury, the payments for debentures falling due on the same days with the duties on the same parcel of merchandise, for deben- tures issued for drawback of duties already paid, for bounties on pickled fish and salted provisions, for drawbacks on the exportation of domestic distilled spirits, for allowances to fisheries, and for expenses attending th© collection of the revenue, should also be respectively distinguished from each other, and frorn payments made on any other account. 5th. That the day on which paynjents are n.ade in the Treasury, either by remit- tances, payments of drat'ts, or payments in bank, should be respectively specified. 6th. That the moneys received from seamen as hospital money, or in the caie of agents disbursed lor the assistance of seamen, should net be included in the return. liut the specifications here men- tioneiisti'}n 4. You have, at my request, produced to the conuniltee a large folio, having the inscription upjii the back of it, " IVeekly returns of re- 76 Rep. No. 313. eeipts and payments of collect or fi of the ciistoms,'" 1831, 1832 ; Treas- ury Departfneiit. Is that book iVoin tlie office of the Secretin ry of the Treasury? From what data is that book made tip ? When was the prac- tice of making entries in that book discontinued? Will you please arniex to your answer a portion of the last page written in that book, under the head of "New York, Samuel Swartwout," with copies of the last two entries, to show the character of the book ? ^^nsLver. The book referred to is from the office of the Secretary of the Tn^asury. It is made up from the returns made to him by collectors, of their receipts and expenditures. The entries therein, as I have under- stood from the clerk who had charge of it, were discontinued in 1831. The aimexed paper, marked M. Y,, No. 1, is a copy of part of the two last entries in the last page of this book, under the head of New York. Rep. No. 313. 77 o 1 •[MAi.waj u^HAV o - 1 ■S33lll!lef[ 1 •sajuBApy 1 ^ - •s^uain^CEj r- o « c ■ft o c» o its' 00 — oo e< — •suopoaijoj n o en CO 00 C35 7* CD 05 CO O ■*" •IBjidaoji O Ift " CO •sjiiatu.CEdajj | » - | •sajnjuaqaQ 35,344 50 26,535 55 •saijunog o : 00 o , •e^disoaj }}3_\j 00 in SD O -■ o 00 oo" 00 00 •siuainaeanqsTQ 65,813 87 40,905 24 •sidi33Da ssoig o — c* CO o o CO o CO o tt'oo ir M •saupung 1 •jBlidsojj O ift C» CO •oScuuoj^ 1 :: : | •OSipUBl{Djaj\[ OS e* o -• ■«>< o e» 00 00 00 1 -jins ui spuog 1 * •* | •spuog in o> c* m CO a> ■^ oo 00 t- in cT CO 05 -lUll)3J JO 9\V(l 00 lO o - 78 Rep. No. 313. It will be perceived that the same tef.timony iiidicales that, since 1831, this species of important record h;is, from t^ome cause, fallen into disuse in the Secretary's Department, And with the record, the elemenis of it appear also to have slsarcd nearly tlie same fate, nnlil "nccnt events" have roused them to a ditierent dei-tination. The following testimony of the same witness illustrates this lad : Examhicd by Mr. Curtis. Qucslion 5. Since the practice of making entries in the book of weekly returns of collectors has fallen into disuse, what disposition lias I een made of the original "weekly returns?" Have they been careiully preserved and bound together in books? Have they not, mitil the recent defalca- tion of Mr. Swartwout, been thrown aside as of no value; and has not search for tliem been lately made, and have they all been found ? ,dnsiver. Since the entries were discontinued in the book mentioned, the returns, after they were received, were referred to a clerk to be ex- amined and filed. It was the duty of this cleric, if lie should see nny thing suspicious on the face of the return, to report it to the Secretary or myself. After an accimiulation of them for one or two years, they were removed from the files and put in a room where papers were placed, to which, it was supposed, no reference would be required. These returns have, as I believe, never been bound together since the binning of the Treasury building, in 1S33. I never. considered them as of no value, but of very little consequeLce ; yet, as they were of a character that, possi- bly, reference to them might be necessary, they were placed aside as stated. In answering this interrogatory, the period embraced in my answer ex- tends only as far back as Septend)er, 1833, when I first entered the De- partment. The retiu'ns are fHAv being arranged, and there are some yet missing: but all the bundles have not yet been examined. As a part of the same system of securing to the Secretary an independ- ent superintendence of '^ every Iransaction which relatefi to the reveinie,'" instituted immediately upon the enactment of the law oriianizing the Treasury Department, another record, deduced from the monthly returns of collectors, has been kept in his Department. Tiie following examina- tion of a clerk in the Secretary's office will explain this in full: Charles Dumynir examined by Mr. Curtis. Question 1. Are you a clerk in tlie olfice of the Secretary of the Treas- ury, and when did you enter upon your duties as such clerk ? Answer. I am a clerk in the odice of the Secretary of the Treasury, and entered upon my duties on the 7th January, 1837, as I no<.v recollect. Question 2. Is it a part of your duty as such clerk to U\kc charge of a folio, denominated, by the gilt letters on the back of i(, " Custom-house bonds?'' Answer. When I took charge of the duties which had been performed by Mr. Anthony, I found the entry from returns of bonds taken and liqui- dated by collectors among the duties which were attached to his desk; and 1 have, since I was appointed to the situation he held, entered such re- turns, as I received them, in the book marked " Custom-house bonds," and Rq). No. 313. 79 consider it a part of my duty ; and it is the book [ now {lave before the committee. Question '5. By way of showing the nature of tlie book, and that there are two subdivisions, the one under the head of " General account of bonds taken and liquidated for duties on 77ierchandisc at the several cti^ lorn-houses,'' and the other, " Account of bonds taken for duties on merchandise which fall due in the month of , 183 ;" will you give copies of two pages of that book ? ,^nswer. A gentleman of the committee, whom I afterwards understood to be Mr. Curtis, rec^uested me, when I was first cited before them with the book marked '• Custom-house bonds," to make a copy of two respec- tive pages from said book; wliich I have done, and present them as a true copy of the pages marked by said gentleman to be copied from the book. These two pages embrace a transcript of the manner in which the book is kept under the heads of " General account of bonds taken and liqui- dated for duties on merchandise at the several custom-houses," and an " Account of bonds taken for duties on merchandise which fall due in the month of , 183 ." 80 Rep. Xo. 313. A. General account of bonds taken and liquidated for duties on merchan- dise at the several cuslom-houses. Districts. January, February, March, April, May, June, 1837. 1837. 1837. 1837. 1837. 1837. Portsmouth _ _ _ _ §4,683 00 §3,097 78 IS'ewburyport - - $639 92 §1,64! 60 2,662 66 1,545 49 Gloucester - $1,261 00 - 5,477 69 _ 3,952 55 Salem $1,882 28 452 93 3,668 10 4,659 61 15,500 58 1,315 51 Ipswich. Marblehead 807 30 _ _ - 2,041 15 Boston - 175,000 00 275,000 00 195,642 50 180,000 00 200,000 00 165,000 OO Plymouth, Mass. - none none none none none 423 85 Barnstal)le. Nantucket. New Bedford 3,344 50 - 8,316 06 Dighton - - - 2,839 90 none - 12,111 10 York none none none - none none. Saco. Portland - 1,343 95 7,454 21 13,701 12 17,855 91 - 25,455 97 Edgartown. Bath - - - - 1,525 68 552 63 Wiscasset. Penoi)scot - - 1,732 03 Belfast - - _ _ - 535 76 597 57 Frenchman's Bay. Machias. Passamaquwldy - - - - 511 92 1,192 61 none. Waldoborough. Kenn^bunk - - - - 784 67 3,226 95 Newport - - - - .3,751 62 2,437 48 1,379 68 Bristol - 3,388 20 11,583 97 - 1,249 80 8,094 9K 10,355 90 Providence 10,764 84 3,203 49 - - 11,203 44 -3,133 10 New London. New Haven 501 56 none none 12,581 06 14,363 72 9,621 47 Fairfield. Middletown - _ 438 18 5,026 08 1,127 12 2,305 64 Vermont _ - - - _ 2,004 13 Sag Harbor. New York 902,044 06 986,666 20 1306746 93 994,340 10 729,328 11 682,735 26. Champlain. Cape Vincent. ■ Perth Arnboy. Great Egg Harbor none none none none none none. Little Egg Harbor. Newark, N. J. - — — ~ ~ ~ 664 05 Rep. No. 313. B. 81 Account of bonds taken for duties on 7nerchandise which fall due in January, 1837. District?. January, March, April, May, July, October, 1836. 1836. 1836. 1836. 1836. 1836. Portsmouth $1,379 42 Newburyport - - - - $1,709 27 Gloucester - - - - 1,787 00 Salem _ _ _ _ 2,173 00 14,321 OO Ipswich. Marbleliead. Boston - - - - - 200,000 00 137,500 00 Plymouth, Mass. - - - - - - 105 07 Barnstable. Nantucket. New Bedford _ _ - - 1,90.1 00 4,706 37 Dighion - _ _ _ - 1,845 00 1,348 86 York. Saco. Portland - _ - - 5,213 33 1,984 47 Edgartown. Bath _ _ - - - 1,094 39 Wiscasset. Penobscot. Belfast. Frenchman's Bay. Machias. Pas.'aniaquoddy - _ - - - 4,025 12 160 44 Waldoborough. Kennebunk. Newport. Bristol - _ _ - - 1,278 00 1,180 01 Providence _ - - - 2,582 54 2,573 28 New London. New Haven _ . - - 7,165 00 Fairfield. Middletown - - - - 2,091 52 Vermont. Sag Harbor. Nov.$28,493 84 New York Aug.$35,089 30 - - - 428,981 08 352,161 04 Champlain. Cape Vincent. Perth Amboy. Great Egg Harbor. Little Egg H:irbor. Newark, N. J. - - - ■* ~ 432 47 162 94 35,089 30 28,493 84 - - 661,188 33 618,677 29 82 Kep. No. 313. Question. 4. Do yon Know the object for which that book is kept in the Secretary's office, and what is the use made of it ? Am-icer. I do not know the object for whicli the book was originally kept, or what use was n)ade of the informatim, as my connexion witk the book has not been long. I should think, liowever, tliat the object must have been to aid the Department with information, particularly when the system of credit was different from the present. Question 5. From wliat data do you make entries in tjiis book from time to time ? %finsiver. I make the entries I'rom returns whicli are received from the collectors of customs; they arc made of bonds taken and liquidated monthly, as I think. Question G. Do not these returns purport to be " monthly returns of bonds taken and liquidated," rendered by collectors to the Secretary? ,/inswer. As far as I Iiave examined those I have received, they are monthly returns. Question 7. Has that book ever been called for by the Secretary of the Treasury, the chief clerk, or other person in the Secretary's office, for ex- amination. Answer. It has not been called for by the Secretary or chief clerk, or other person, for examination, since I have had charge of it. Question 8. Up to what period are the entries in that book brought up and completed? Jlnstver. January, 1839. Question 9. Does that book enable one Avho examines it to see what amount of bonds are payable in any given month at the port of New York, and other ports ? ^^nswer. So far as the returns present them, it does. In continuation, and to complete the record view secured to the Secre- tary at all times, of ^^ anj/ trcn)sac/io)i tvhicti relates to the 7'evenue,^' a. third book was formerly compiled for his office from the quarterly returns of collectors made to other accounting officers of the Treasury. It will be seen, from the following testimony of the present Secretary, what was the nature of this record, and how far it has fallen into disuse under his administration of the office. Levi JVoodbury , Secretary of the T^'easury, examined by Mr. Wise. Question 21. When were you appointed to the office of Secretary of the Treasury ? Please loolc on the book presented, entitled " Collectors' quarterly accounts," and say whether you have ever examined this book, and when ? ^'inswer. I entered on the duties of Secretary of the Treasury about the 4th of July, A, D. 1834. The book mentioned appears to be that before referred to, in which one of the clerks in my office was in the habit of making the entries sent from the Auditor's office. I have no recollection of ever having had occasion to examine that book for any particular pur- pose, or ever to have exrunined it till since the question ^rosc concerning the dis:ontinuance to make those entries. On some occasions I have visited the rooms of the diflerent clerks in my own offic. No. 313. 83 >. o ci S • '^ £ O .- i-i s— ^ t^ G rj •-. X -^ O (D rf g 2 ^^'^;^ s of 5 « i ^ s •B c ^-~ bo ri ^ 5 !^ -^ (U "73 .5 t^ ^ d «-' - r/3 ^ ^''^ Si C !- ♦^ '*^ •5 ^' ^'^ •xi o •" 1 CJ -^ c t^" o 5-3 i '^ O tH >>J t; o 1) ♦-» '•'^ i_ '-I 'Zl CJ O O "^ fco ;i^ o (0 60 tn o -^ C 03 ^ rn S § 2 o "w c/3 y;. gj So—! S- °"o >■- w rt ^ o « « O <» *J .- CO o3ut;iBa •wiupmij^ £5; ■.■Cjuoumii;;!'! -;i •>}S!in»;i(3jjiu pouiinpu^i 1 • 1 • •S.umidJJilJ pui! 'SiHlllTilKKi 'Bolll.^ •Kpuoq uo is.ij ini ^cn •si.iixisbt'd 110 saiinQ | •as!puT;q.ijoiu U0 6y!l"Q C-3 .0 § CO S 3 -a a a •si'^ip SuipuBismo ■spnoq ui |1 ■saupuni^' 1 ■uop3on>.o no sosa.'Klxg o2 •piBdaj saimg ■piwl soJinud'^aQ 1 as 'siBiidsoii auiJTuu 'sitinsia'uz oa boou^jmohv •.Cmsuajx aui oiui siu^iuiabj •jsuvnbiSBHuo.ijjoioanooaqiaiip oomi«U 1 ■ i •XjnsB3JX 9111 IB paAiaoaj ojjav siunoooB adi{M sai^d -0 aiuBU s,joiDaiif>0 •PlJod !5 CD O o Vj O O != C HJ r>-. rj q; cS ^ 0:5 CS.2 O ri > X ri •y SL (D r- '^ r, Cti i/5 Cj w-i C ^ >n C7i CO 5—1 ri l-H b£ ^•-I cc cw ^ 5 r ^ ^ ■4-J fi .c C^ '> ^ ^■^ rr fl^ >» •-> u. OJ '11 W hr (/3 Ci j2 OJ r -i— C) bO *" « 0) ■1 n V-i •+:. br n Si rj >. .^ J3 c «s ^H ti M V: r> rt •> ^ J3 u* t-i r— ! ai n) S ^ x; <; c/D Q 84 liep. No. 313. Jitiswer. The book in which the entries were made of the aggregates of several items from the accounts returned by collectors to the First Auditor, contains snch headings or titles us are described in the above in- terrogatory ; and the entries, made as 1 suppose by the clerk in my othce, Mr. Dungan, who had charge of the book, are in the sums or amounts described in the interrogatory. In the next pages the entries for the ;3d quarter of 1S35 do not contain any sums for twenty or twenty-three ports, including New York among them ; and no other entries for any port appear to have been made in that book afterwards. Nor do I know that these aggregates were, subsequent to that time, entered or copied in any other book m my office, either for New York or any other port ; but presume, from Mr. Dungan's statements, that the accounts not having been afterwards sent in to him from the Auditor's office, he omitted to go after them, or send for them, and the aggregates were not afterwards copied by him ; and that he omitted also to make any report to me of these circumstances, for the reasons before stated in reply to a former interrogatory. Mr. Dungan is, however, now a clerk in the oflice, where he has been, I understand, over tv/enty years; and can give to the committee, if they desire it, fuller explanations as to the entries made by him, and the cause of his discontinuance to make them, and the use, if any, which had ever been made of them during his acquaintance with them. From the preceding testimony, it is manifest that, although all the be- fore-named records appertain to one "general system," which was devi- sed to secure an independent superintendence of the revenues to the Sec- retary of the Treasury, at the same time the execution of the laws for collecting those revenues was committed to subordinate officers. The system has, of late years, been permitted to fall into utter neglect and dis- use, 1st, by the total discontinuance of two out of the three books of rec- ords of which it consisted ; and 2d, by the entire disuse of the third book, though preserved in form. The following testimony adds to the surprise of this result in the inves- tigation of the committee : that while a part of this important system of the Treasury Department, designed to guard and preserve the public rev- enue against peculations and frauds, has been permitted to fall into obliv- ion, and another fragment of it has been continued to be made to this day, neither the part abandoned nor the i)art continued lias ever been known to, or comprehended, and much less appreciated in use, by either the head or any subordinate clerk of the Treasury Department.' Thomas Dun^mi, the clerk in charge of the quarterly book, and refer- red to in the preceding testimony of Mr. Woodbury, being examined by Mr. Cwr//,s, testified as follows : Question 10. Have you sufficient knowledge of the nature of the weekly and monthly returns made by collectors to the Secretary of the Treasury, to enable you to say whether they were not intended both for a check on the collectors, and also to enable the Secretary to make esti- mates ? •Answer. 1 have not. They have, except for three or four years before the burning of the Treasury, been kept by other persons. Question 11. If the weekly and monthly returns would enable the Sec- retary to estimate the amount of money he coidd calculate upon, would Rep. No. 313. 85 they not also furnish the Secretary a check upon thecollector, if they were carefully compared unt/i the quurlerly return honk which you had chorge of? Answer. I cannot tell how thai would bo, as there has never been any conipnrison that I know of. They might, if honestly niadc out. Qwatioii 12. Do you think yourself competent to give an opinion con- cerning the objects for wliich the weekly and montlily returns were ori- ginally required, or concerning the use that was made of them by the Sec- retari'^s, before you had charge of the quarterly book ? Answer. I do not tiiink I am. Question 13. How did it happen that the entering of tiie quarterly re- turns of collectors on the book of quarterly returns in the Secretary's of- fice was discontinued, and when was it disconlimied ? Answer. I was sick ; and when I returned to the office, the quarterly re- turns were taken from my desk by the Auditor's clerk. I went after them ; they had been sent (o the Register's office. I coiisulted Mr. An- thony ; lie thought they were not of much use, as credits were so short, and I never entered any more after that. This was the second or third «[Liarter of 1835. Question 14. When you had the quarterly .return book, and when you had charge of the " weekly returns," had you any orders to do any thing with them except to enter them in the books? Answer. Not any. Air. Young, chief clerk in the Department of the Secretary of the Treasury, examined by Mr. Curtis, testified as follows: Questioji 22. Can you, or any other clerk of the Depjirfment known to you, in the Department, speak with certainty of the import^ c.ff^^ct, and meaning of all the entries in the "bond book" under the head of "col- lector of New York?" Who formerly had charge of it? Answer. I am not aware of any clerk who is conversant to a sufficient degree with the entries in the book referred to, who could satisfactorily explain them. Having already stated what I believed was the object of requiring the returns which are entered therein, I have never had occasion, myself, to make myself acquainted with the manner in which it was made up. The clerk who kept it for many years died in December last. William B. Randolph examined by Mp. Curtis. Question 1. Are you employed in the Treasury Department? What situation have you held, and what situation do you now hold? How long have you been connected with the Treasury Department? Answer. I am employed in the Treasury Department at this time as chief clerk in the Treasurer's otlice, and have been connected with the Department in several offices and situations for nearly thirty-one years. Question 7. From the examination you have m.-ide of the " bond book" from the Secretary's otlice, and of the entries therein, can you speak with certainty of the import, effect, and meaning of the entries of bonds taken at New York ? Answer. I cannot explain them all satisfactorily to myself. 86 Rep. No. 313. Mr. JVoodbiwy, Secretary nf the T?'casio'y, examined by Mr. Wise. Question 23. Is any iDOok of registration, in the nature of a Icger ac- count, or other transcript, made in the Department of the Secretary of the Treasury, of the momlily returns of the collector of the port oi New York, of bonds and revenue accruing ; by which registration, or other transcript, the balances or difierences in said monthly returns can be as- certained without recurring to the original returns? If yea, please ex- hibit the same for the year 1S37 and the first quarter of 1S3S. *,^nswer. 1 am not aware that any book of registration of those returns is now kept up or made in the Department. I have not been accustomed to resort to it or examine it, if one is. J3ut vvhen I have had occasion to know the aggregates in any of the weekly or monthly returns after they passed out of my own hands, I have sent for the returns themselves, and obtained the information v/anted from them. My im])ression, at the same time, is, tliat sucli a book was formerly kept, into wiiich these aggregates were copied, but that the copying of tliem has been discontinued: of tliis fact, however, I cannot speak witii certainty without examination. In the great amount of business in my office, and the extraordinary increase of it during the past three or four years, the making up of the records and entries, and the immediate regulation and disposition of the hooks iu which they are made, is, from necessity, devolved on diHerent clerks ; and the supervision to sec that they are made in season, and in proper cases, must be intrusted, in a great measure, to the chief clerk in the of- fice, under gcp.eral in.structions from the Secretary. Whether a similar practice was not always in existence, the older clerks in the office will be able to explain. James If. Sniooi, a clerk in the Treasury Department, was sworn as a witness. Exainined by Mj\ Curtis. Question 1. Are you a clerk in the office of tlie Secretary of the Treas- ury, and how long have you been such clerk ? Answer. I am. I was made a permanent clerk in the Department un- der the act of June i.>3, 1836; previous 1o which I had been employed for some eigliteen months or so as a temporary clerk. Question 2. Have you charge of the weekly or monthly reluins of collectors made to the Secretary of the Treasury? , JiuMvcr. I have charge only of absfr.icts of bonds in suit, and of deben- tures, which reach the Department very irregularly. Such as have reached my desk have been futhfully preserved. It is not in my })ower to state certainly any thing like a proportion of such as siiould have been received, being ignorant of the business of the custom-houses. I believe they are. required once a month. Some of the collectors make returns ''none." Question ^. What are your orders in respect to these returns ? Has the Secretary ever called for them since in your possession ? Are they I.vound in books, or are they loose and not filed or endorsed ? Jinsicer. My orders were simply to preserve them on taking possession. of the desk. 1 have lately received directions to have them bound, and to continue that practice. I do not recollect tliat the Secretary has ever call- ed for them. I am satisfied he has not. They are loose, and not bound in books.^ They are not endorsed, save that most of them in lead pencil naming the port. Rep. No. 313. 87 It seems to be the opinion of the present Secretary of the Treasury, (un- der whose ncliiiiiiistralion this iaiportaut system of record-checks has beeu permitted to fall into neglect, and almost oblivion,) that the returns of col- lectors to him, from which it is made, are only for the purpose of enabling him to obtain a vague estimate of the current receipts of the Treasury. This may explain his neglect of those returns, although it is not a justifi- cation of it. But if this were their acknowledged and sole purpose, it is most apparent, from the testimony before the committee, that such a use of them by the Secretary has been but inconsiderable and exceedingly sparing. The fir different use of whicli they arc susceptible, and which w%is once made of then;, is illustrated in the following examination: The examination of Mr. Ilandolph hxj Mr. Curtis. Mr, Curtis exhibited to the witness the following extract: " The abstraction of the amounts paid on bonds never returned as liqui- dated, forms about one-half of the entire defalcation of the late collector at New York. Of the other moiety, the two principal items are, cash held on deposito to meet uaascertaincd duties, and cash retained ostensibly to refund duties paid under protest. *•' In connexion with the abstraction of those sums, as well as of those paid on bonds, I would observe that, until. a few years past, the accounts current received at the office of the First Auditor, with the quarterly ac- counts of collectors, w"ere called for and compared, in the otiice of the Secretary of the Treasury, with a record there kept, and with the several returns rendered to the Secretary, in conformity with the requisitions of his circular dated the 14th of October, ISIS, and repeated on the Mth of November, 1S35. " The list of returns thus rendered embraced the following: A weekly return of moneys received and paid ; A monthly return of debentures paid; A monthly abstract of bonds put in suit during the month ; A monthly summary statement of duties collected ; A mont'niy schedule of bon is taken and liquidated during the month; A quarterly return of the moneys received and paid under the acts for the relief of sick and disabled seamen. •'' Those exa/ni?talion the Secretary, and illustrating how effectual these returns are in the detection of deficits as well as in the estimate of receipts : Treasuky Departmkxt, March 15, 1838. Sir : Perceiving that the amount of duties received at your port during (he month of February is much smaller than was anticipated, I will thank you to explain to me the cause, if you can account for it. By the exten- sion of credit for nine months, under the first section of the act of the 16th of October last, those which fell due in the latter part of the month of May preceding would become payable towards the close of February last. Besides, under the second section of the same act, allowing a credit of t.h7'ec and six months upon all merchandise subject to cash duty imported *'on or before the 1st day of November," the three months' bonds bearmg date the 1st of the last-mentioned month would consequently fall due in February. Should the diminution of the anticipated amount of receipts from duties prove to be owing to the default of tlie obligors in not paying their bonds, you will be pleased to state the amount of such, together with ar.y other facts tending to throw light upon the subject. I am, very respectfully, . LEVI W00D15URY^ Secretary of the IVea.rury. Samuel Swautwout, Esq. Collector of the Cnstonis, Neiv Yo7-k. CUSTOM-HOL'SE, NeW "^'oRX, Collector's Office, March 17, 1838. Sir: In answer to your letter of the L^th instant, inquiring into the C3uses of the discrepancy between the amount of duties received at this port during the month of February last and the amount that was anti- c-ipated, I have to observe, that whatever difference exists has arisen out of some error in estimating the amount ])ayable, and not from any actual or material difference between the amount accruing and the amount paid. Of the bonds which fell due from the 16th to the 31st May last, there were extended ----- ^290,000 Of this sum, there have been j)Ut in suit - - 15,000 Thas leaving - - - - - - ii75,000 Under the second section of the act of 16th October last, there were taken and paid, due in February - - - iSl 10,000 385,000 Rep. No. 313. 91 The ordinary three months' bonds taken m November last, and due and paid in February, were - - . 7.'5,00O Total ... - .$460,000 By ihc above, it appears that tiie bonds which were payable in Fcl>niary have been collected, with the exception of an amount of Si 5.000. which has been put in suit; and that the whole amount payable did not amount to jS500,000. The residue of our receipts, as per tlie returns in February, were com- posed of cash duties, bonds in suit paid, and ititerest on extended bonds. I have t!ie honor. &c. SAMUi:L SWARTWOUT, Hon. Levi Woodburv, Cot lector. Secretary of the Treasitry. In tjie opinion of the committee, had the same scrutiny of Mr. .Swart- wout's retiu'ns to the Secretary been imiformly made in his office, as Iry the preceding letters it is apparent was made occasionally, the legitimate purposes of those returns would have been accomplished, and Swart- woul's defalcations could not liave escaped detection beyond the termina- tion of the first ([uarter in whicii they originated. It may be remarked, that in the tostimonj" of the Secretary, as of that of his chief clerk, which repudiates the use (on the ground of their being valueless to detect defalcations) of the records deemed so essential in the opinion of so many individuals who have preceded themselves in office, there is to be found also the jnoof that no use of these records had. at any time prior to Swartwout's defalcation, been attempted by the Sfcretary, or any otlier person in office under him. While, tlierei"ore, the one branch of this testimony seeks to found an opinion. that is to serve as an apology for the neglect of a palpable duty, the other branch divests that opinion of all claim to actual experience in the u^e of the thing it repudiates, and must proportionally weaken any reliance that otherwise might be placed upon it. In this connexion, it should also be remarked, that, since the discovery of Mr. Swartwout's defalcations, the same comparison^ for wliich the neglected records in the Secretary's Department are believed by the com- mittee to have been instituted, llave been revived for future observance by the Secretary. The results of negligence, and not those of experience, liave been the sources from whence lessons of prudence have been derived, but too expensively to the Government, in this instance. Tlie subjoined answer to the eighteenth interrogatory propounded to Mr. IVoodbirry by Mr. Wise elucidates these })articulars : "The entry of the amount of the quarterly accounts of collectors in a book was discontinued in November, 18.'j5, and is stated by the Audiior to have happened in consequetice of one of his clerks not sending them for tliat purpose to the clerk keeping the book here, because they were detained by him too long. '' But this discontj nuance wns v.evcr reported to tiie Secretary of the Treasury, either by the Auditor, or the clerk keeping the book, till last November or December. When it was reported, I deemed it proper, till Congress made some legal provisioii on the subject, to adopt their sug. 92 _ Rej). No. 313. gestioiis. and. ascertain if any benefit would result from such comparisons, f therefore requested the Auditor himself to report to me weekly, not only the balances on the accounts as rendered, (which alone did not seem likely to afford much aid in detecting defaults, if a comjiarison was insti- Tuled,) but to report the balances found due on Ihe final settlements. And 1 have since retjuested him to report explanations as to those balances when large or unusual. " Whether, after this, any comparisons in my own oliice, between those ;5.nd the weekly abstracts wliich I have directed to be made, will ever lead to any detection of such defaults as escape the accounting oificers, is some- what problematical, for reasons stated in document No. 69. " But I deemed the effort proper, luider the opinions expressed by those officers." The foregoing testimony renders it certain that a revival of the com- ])arisons resorted to under other administrations of the Department, is now made designedly. The Avhole testimony is equally explicit that the records for such comparisons were not discontinued designedly, but little by little, through the slow and dull process of oversight and neg- lect — oversight in regard to the value, and neglect in regard to the actual use of the records. It was undoubtedly by means here adverted to that Mr. McLane, while Secretary of the Treasury, was induced to call for an explanation of Mr Swartwout, of a large outstanding balance which appeared upon !iis quarterly account at one period. In the testimony of M?-. Shultz, former auditor of the custom-house under Mr. Swartwout, answer 6, the circumstance is thus adverted to : <' Soon aftqr Mr. L. McLane came into oliice as Secretary of the Treas- ury, he sent to the Comptroller for the accoitnt current of the collector of New York for the preceding quarter, and, observing therein a large bal- ance due to the United States, Avrote- Mr. Swartwout a letter, the sub- stance of which was — 'Mr. Collector, I. perceive by your last account ciuTent that you arc indebted to'the United States in a large sum. Please to deposite that sum in the Branch Bank to the credit of the Treasurer of the United States, and send on. the receipt therefor without delay.' Mr. Swartwout referred this letter to me, with the request that I would give an accotmt of that balance, saying he was not aware of being in- debted to the United States in any sum. * I took the necessary custom- house books home withme,Scit up a great part of the night, and rendered an account of every item making this balance. This account was next morning sent to tlie Secretary of the Trccisury, who, not understanding the manner in which the cuslom-house books were kept, sent this state- ment to the Comptroller's office, with the request that it might be exam- ined by the clerks in the ('(nnptrolier's department, and be reported to the Secretary. The statement was found correct of the items of the balance, without a difference of a single cent. This same statement is probably now in tlie office of the Secretary of the Treasury, if not burnt.". The great probability that an habitual recourse by tlse Secretary of the Treasury to a condensed record of the accounts of collectors, such as was heretofore kept in the Secretary's Department, would latterly, as it did in the days of Mr. McLane, have arrested the attention of a prudent and energetic officer, may be readily estimated by the extraordinary manner m which the quarterly balances of Mr. Swartwout's accounts for "cash Rep. No. 313. 93 543,204 856,019 4.1 6' 9:j 5- retained" and for "amount of duties credited and not yet paid, and sus- pended accounts," liave been permitted to grow and enlarge, unchecked, within the last few years. The following is an illustration, not of wliat came to the knowledge of the present Secretary, hut of what would have reached liirri had " /he records^' of his oliicc bef^n perpetuated, estimated. and used. By the testimony of Mr. Flemins^, auditor of the custom-house, (sec Committee's Journal.) it appears that Mr. Su artwout liad charged to the Government, in his accounts, items as follows : " Amount of duties credited and not yet paid" - - - ' - $206,919 0^ " Amount of duties credited and not yet paid" - - - ' - 295,416 84 " Amount of duties credited and not yet paid" - - - ' - 553,178 74 "Amount of duties credited and not yet paid, suspended accounts, &c." - 374,343 '' Amount of unsettled dudes on dc- posite, unsettled accounts, &c." " Amoimt of unsettled duties on de- posite, unsettled accounts, &:c." " Amount of unsettled duties on de- posite, unsettled accounts, &c." - 1,053,531 '' Amount of unsettled duties on de- posire, unsettled accounts, &c." - 1,168,116 44 " Amount of unsettled duties on de- posite, unsettled accounts, &c." - 675,693 4H "Amount of unsettled accounts, duties on deposites, &.c." - - - 577,493 23 " Amount of unsettled accounts, duties on deposite, &c." . - - 516,331 Oo '' Amount of unsettled and suspense ac- counts" - - - - 532,390 G9 And, in the same quarterly accounts, the following items: "Cash retained the 31st March, 1S35" "Cash retained the 30th June, 1S35" " Cash retained the 30th September, 1835 " Cash retained the 31st December, 1835' " Cash retained the 31st March, 1836" " Cash retained June 30th, 1836" - " Cash retained September 30th, 1836" " Cash retained December 31st', 1836" '■• Amount retained March 31st, 1837" "' Amount retained June 30tli, 1837" " Amount retained September 30th, 1837' " Amount retained December 3lst, 1837'' The fact that the incumbents of the 1st quarter, 1835. 2d quarter, 3d quarter, 4th quarter, 1st quarter, 1836. 2d quarter, 3d quarter, 4th quarter, 1st quarter, 1837. 2d quarter, 3d quarter, 4th quarter, 46 32 19 17 02 70,832 56,111 ' - . - 14,083 - 108^349 - 145,675 - 159,933 08 - 152,579 43 18,763 53 31,528 01 - 117,842 15 49,295 54 79,231 56 two accountinar olTices in the Treasury were, as represented in the annexed examination of the Secre- tary of the Treasury, borne down by age and infirmity, furnishes, per- haps, some explanation why less attention was devoted to the extraor- dinary balances contained in Mr. Swartwout's preceding quarterly and weekly returns than otherwise might have been in those oftices; but the 94 Rep. Xo. 313. same consideration, notorious as it was, \rould seem to have dcmarided f^reater watchruhicss and particularity in the })rinci})al superintendent of tl)e revenue, the Secretary himself. Mr. JVoodbnry exatniiicd bi/ M)\ Owens. Question o5. Wlio h<;id tlie oflices of First Auditor and Comptroller at the. time these defalcations, or the greater part of them, occurred? Were you personally acquainted with them ? Vv'erc they competent, pliysically and mentally, to discharge the duties of their respective offices ? Did you • ;ver suggest to the President of 'the United States the great importance of having conjpetent men in those offices, and the circumstances under which you made the suggestion ? ..■in.siDcr. Judge Anderson held the office of Comptroller for many years previous to IS.'JG, and resigned, I think, in the summer of tliat year. Richard Harrison, Esq., also held tlie office of First Auditor a great num- her of years hefore >Jovember, 1S36, when he also resigned. I was well acquainted with them after 1S34. They were both gentlemen very niuch advanced in life — I think over seventy years of age; and they had suifered (and especially the former one) from the infirmities incident to their great age and long-continued labors. But they were both men of )nueh worth and, fidelity ; and hence, though less able tlian in former years to meet the calls on them of the usual business of their respective bureaus, and'much more the increasing calls and. business of 1835, and especially 1S3G, the Department felt reluctant to advise their removal on account of the cx)m[)lain(s sometimes made of their increasing infirmities and disainlities. Dut after several conferences on the subject with the President, I understood that they both agreed to resign, and did so at the times mentiojied; but without tke slightest complaint or reproach as to r.heir integrity and disposition, while in office, to exert all the vigilance, energy, and labor, of which they v/ere capable. From the following testimony of WiUiani B. Handolph, now. chief clerk in the office of Treasurer, it appears that balances so extraordinary were sufficient to arrest the attention and excite the astonishment of subordi- nates in office. Examined by Mr. Curtis. Question 2. Have you, at any time, while employed in the Comptrol- ler's office, examined the quarterly returns of Samuel Swartwout, late collector of New Yorlc ? If yea, for what year were those returns which you exa)nined : and was there any feature in the accounts which attracted yoiu- attention ? ^inswer. During parts of the years 1S35 and lS3(i 1 Avas employed in the Comptroller's office to revise the accounts of collectors north of the Potomac; among them, the accounts of Samuel Swartwout, late collector of New York. His accounts for the last (juarters of 1S35 and the account for the first quarter of 1S36 passed under my inspection; in these I no- ticed the iarqe and increasing balances of cash on hand, amounting, on the 31st March, 1S3G, to nearly v?700,000 ; for which 1 was not aware of any sutlicient reason. Question 3. Did you mention this fact to any person, and to whom ? Jjiisiver. I spoke of this circumstance frequently among my fellow- clerks as affording Mr. Swartwout a fine opportunity for accommodating his friends, and perhaps benefiting himself; and I iQiil confident that 1 Rep. No. 313. 95 mentioned the fact to Mr. Laub. the then chief clerk, who frequently acted as Comptroller; but I did not otherwise speak of it in a manner calculated to excite the attention of )uy superiors. The House will discover, by recurring to the form of weekly record oi returns from collectors, formerly kept in the Secretary's oiiice, so minute was the care then deemed essential to the security of the revenue, thra one column was devoted specially to recording the day on which such weekly returns were received at the Department. A day's omission of duty in these returns iken, was liable to immediate detection ; and the care with which Mr. Gallatin, while Secretary of the Treasury, enjoined the ears, from his register, to have received about SljOGG in two chancery suits then ])ending, in which the United States were interested, and which sum has never been paid over. His defalcation, prior to December, 1S3G, according to the information in my possession, was confined almost exclusively to the sums above mentioned. In December, 1836, he appears to have received ^1,:32.S 97; in January 102 Rep. No. 313. and February, 1837, §9,646 07; and in May, 1S37, S6,0")l 11, on ciis- tonri-house bonds, no part of which has ever been paid over. This in- creased his defalcation to about S.25,000, at which it appears to have re- mained until afier the 1st April, 183S; between wliich time and the Stli day of .D(?ct,'mber, 1S3S, it was extended to about the sum of S72,124 36, above mentioned. I am not able to state whether or not Mr. Price mad(» ail the returns to the Treasury Department at Washington required by .his duty and the instructions of the Solicitor ; but I have reason to believe that, when suits were commenced on bonds, they were generally reported, and that the returtis of custom-house bonds in suit were regularly made to the SoU- citor up to the end of the last September term of the district court. But there is a cause auxiliary to tliat of inelficiency or negligence in the administration of the department of the Solicitor of the Treasury, to which are ascribable the incipient impulses of Mr. Price's defalcation. It is to be found in the pecuniary irresponsibility and want of trustworthi- ness, as a professional man, at the time of his appointment to the office of district attorney in 1834, by President Jackson, as also at the time of his rtiapyiointment in 1S3S, by President Van Buren. These character- istics of Mr. Price appear to have been notorious at each period of his appointment in tlie community from which he was selected. The sub- joined proof establishes the fact. Jllexandtr Hamilton, a witness called by Mr. Owens. Examined by Mr. Curtis. Question 4. Did you know William M. Price, late district attorney of the United States, and his general reputation for pecuniary responsibility? What has b^en that reputation for fifteen years past ? Answer. \ have known him for tlie period mentioned, and during the time have understood him to be entirely without pecuniary respon- sibility. . Jlrent S. De Pcyster, formerly weigher in the custom-house, called by Mr. fVise. Examined by Mr. Harlan. Question 10. Are you acquainted with William M. Price, late district attornev of the United States? If yea, please state whether he was re- garded, before and after his appointment, as a man worth)- to be intrusted with collection of large sums of money. Answer. I am ac([uainted with William M. Price, late district attorney, and answer the (pu stion in the negative. Russell H. Nevins, called and examined l;)y Mr. Owens. Question 5. What was the reputation oi' Wni. M. Price for pecuniary responsibility at the time of his late appointment as district attorney of the United States ? Aiiszuer. It was. in my ostimaiion, ;u)d according to the best of my knowledge, the general opinion that he was utterly unworthy oi" any pecuniary credit. I have known Mr. Price upwards of thirty years. Rep. No. 313. 103 Question G. How long has Mr. Price been thus regarded in this com- munity ? ^inswer. My opinion of him has heen the same for the last twenty years. With the pubUc. lie may have gained something in the course of the last few years, prior to his late departure. Question 7. Do you say that Price's reputation had improved any be- fore his appointment as district attorney of the Ignited States.^ ^f'inswer. Not to my knowledge. Gorharn A. Worthy cashier of the Cily Bank of New York. Kxamined by Mr. Curtis. Quc'iiio)i 4. Were you acquainted with William M. Price, laie district attorney of the United States ? If yea, what was his i(e7ie7-a/ repxilation tor pecuniary responsibility prior to, and at the time of, his late appoint- ment as district attorney ? Was Mr. Price regarded in this community as trustworthy in pecuniary matters ? Answer. I was acquainted with Mr. Wm. JN'I. Price. My impression is, that Mr. Price's responsibility, in a pecuhiary point of view, was very liffhf. Prior to his appointment as district attorney, his name would have had no tceight in bank. Qnestio7i 5. Was Mr. Price's reputation such that you would have felt justified in intrusting him with the collection and receipt of money for the City Bank, prior to and at the time of his late appointment as dis- trict attorney of the United States ? Answer. I was not, at the time alluded to, sn£icieiitly acqu'iinted with Mr. Price to have done so without first making ihe necessary inquiries. Question G. Was it not notorious in tlie community at the time of Mr. I'rice's appointment as district attorney of the United States, and before that time, that he was regardless o{ pecu7iiary obligatiotis ? Ansxuer. I have no distinct knotvlediie that will authorize me to answer that question. How Mr. Price may have,stood in pecuniary matters with others I know not. Question 7. You are asked concerning the cojnmon report, the s^ene- ral reputation, in respect to Mr. Price, and not concerning your own knowledge of hinr. Would you, (if it had been witliin the .scope of yonr duties as cashier of the City Bank,) relying upon the general reputation of Mr. Price, at the time above alluded to, have intrusted hiin with the collection and receipt of any considerable sum of money for your bank ? Ansiver. No, James B. Murray, late president of the Morris Canal Company, call- ed by Mr. Owens. jS.vamined by Mr. Curtis. Quesfinn 5. Were you acquainted with William M. Price, '-ite di-'-trict attorney of the United States ? If yea, how long ? Was Mr. Priee t;rior to, and at the time of, his late appointment to said oflicc, regarded in this community as worthy of confidence in pecuniary matters? Answer. I br.ve been acquainted with Mr. Price for thirty years, and 104 Rep. No. 313. have never known him to be considered as of much pecuniary responsi- bility prior to his being appointed district attorney. Questifm 6. Would you, as a merchant, have regarded it as safe and prudent to place demands in his hands lor collection, wlien, in the course of business, the uionoy to any considerable amount would have passed into his hands ? ^insiccr. I should never liave employed Mr. Price to have collected any demand for me involving the necessity of a large sutn of money pass- ing through his hands. George Gi^iswold, merchant, called by Mr. Owens. Examined by Mr. (h/rtu. QacsUon 2. Were you acquainted with William ?kl. Price, late district attorney of the United States ? If yea, how long have you known him, and what was his reputation in this community for pecuniary responsi- bility at tlie time of, and prior to, his ai)pointment to said ollice? K'lnsictr. I think I iiave been acqnainrcd with him for about fifteen years ; i should think he had as little reputation for pecuniary responsi- bility as any man you could lind. I shoidd say his reputation was de- cidedly bad: I never saw the day-when I would trust hira with two hun- dred dollars. Quest ion '3. Was Mr. Price's reputation such, at the time of his late appointment, in this community, that you should have regarded it safe and prudent to intrust him with the collection and receipt of any coi'sid- erable sum of money ? Jhisw.er. Certainly not. Jonathan Goodhue^ merchant, called by Mr. (Jwena. Examijied by Mr. Curtis. Question 3. W^ere you acquainted with William M. Price, late district attorney of New York? If yea, what was his re.putatio7i for pecuniary responsibility at the time and prior to his appointment to said ollice.^ You are not asked for your own knoiule.dgc, but o(" the s^eneral report in this conniiunity, concerning Mr, Price's pecuniary responsibility. ^dnswcr. I have known Mr. Price for many years, but not in the way of meeting him frequently. From what I understood of his business in his profession, and of his inheritance from his father's estate, and, on the other hand, of his habits of expenditure, I did not suppose his pecuniary responsibility was of much account, if, indeed, of any. Question 1. From what you knew ol" Mr. ]*rice,and his general cliarac- ter in the community, would you have considered it prudent, at any time, to intrust Ijirn with the collection of notes or bonds, to any considerable amount, if the money was to pass into his own hands? *^fUiwer. I sliould iiot have considered it prudent to do so. Rep. No. 313. 105 John Ward, broker, called by Mr. Owens. Examined by Mr. Curtis. Question 8. Were you acquainted with William M. Price, late district attorney of the United Stales? If yea, how long have yon known him ? What was his reputation for pecuniary responsibility at the time of and prior to his appointment to said office ? t/^nswcr. A sHght acquaintance for a year or two past. He was gen- erally considered without pecuniary responsibiHty. Question 9. Have you, or not, known his general reputation for a longer period, and for many years past ? ^Inswer. I consider his general reputation has been exceptionable for many years, and I have known it for many years. Question 10. Would you, as a broker and man of business, have re- garded it safe and prudent to have intrusted jMr. Price with the collection and receipt of any considerable sum of money ? Jinswer. I should not. David Clarkson, president of the Brooklyn (late deposite) Bank. Examined by Mr. Curtis. Question 1. Were you acquainted with William M. Price, late district attorney of the United States? and how long have you known him? tdnswer. For many years. Question 2. For the last ten years, or prior to and at the time of his taking said o dice, v/ hat was his reputation in tiiis community for fidelity and responsibility in pecuniary transactions? Would you have deemed it safe and prudent to intrust him with your business, if your money were consequently to pass into his hands? Answer. Since I have Icnown him I have been, mysf^lf, unfavorably impressed as to his standing ; and his pecuniary responsihihty sucli that 1 should have considered my property insecure in his hands. While it is not deemed by the committee within the scope of its legit- imate province to investigate the causes "which have disturbed the rightful course of appointment, and have placed or continued |)ower in unfaithful or incompetent hands,'' the conviction is irresistible, that, in the case of Mr. Price, as well as in that of Mr. Swartwout, they have re- sulted in immense losses of the public money, alike disreputable to the Government and demoralizing to the country. And, from the testimony in the case, the committee find the following facts cstablislicd : 1st. That William M. Price, as district attorney, is a defaulter to the Government in a larse amount. 2d. That his defalcations are attributable to the notorious irresponsi- bility and want of character of said Price at the periods of his ap{)i»int- ment and reappointment, and during his entire terms of ofhce ; and to the continued neglect of the proper and efficient discharge of duties at the office of the Solicitor of the Treasury, by the late and present in- cumbents of that office. 8 106 Rep. No. 313. PART III. THE CORRFXTNESS OF THE RETl'RNS WHICH HAVE BEEN MADE BY THE PRESENT COLLECTOR AND NAVAL OF- FICER OF THE PORT OF NEW YORK, RESPECTIVELY. So far as this inquiry related to tlie returns of the naval officer, no im- pediment was started or encoiuitered from any source. And, considering that nearly two-thirds of the whole revenne of the Government passes' into the hands of the collector of this port ; and considering the natural, and by no means unworthy, distrust that has of late pervaded, and still pervades, the public mind in relation to the safety and proper disposition of so large a portion of the Government funds as are managed, while in transitu to the Treasury, by him ; and considering, more especially, how free and well prepared, as a general rule, every officer intrusted with the delicate task of conducting the money concerns of the people should be to lay bare to the public gaze, at any time wlien called upon for the pur- pose by even the semblance of competent authority, if all is as it should be in the department of such officer ; the committee regret extremely that they were not equally successful hi pursuing their inquiry into the cor- rectness of the returns which have been made by this collector, as into those of the naval officer. But they feel constrained to say, that, on the part of the collector, there was a sensitiveness manifested upon the sub- ject of their inquiry wholly incompatible with the high bearing that or- dinarily characterizes pure dictates and conscious integrity, and wholly at variance with the obligations of duty imposed upon him by his station. The hope is indulged, however, that, in this case, it may have proceeded only from the petulancy and vanity sometimes incident to the possession of "brief authority;*' although it would be claiming too liberal an exer- cise of charitable feeling to require the committee to yield, without quali- fication, to sucVi a conviction. The inquiry reached far enough to enable them to pronouce definitively that the returns of the collector, in relation to the public money received by him, if true in their details, ha\e not been made in details according to the requirements which should be en- joined upon him by the Secretary of the Treasury, in whom is vested, by existing laws, the absolute superintendence of the collection of the public revenue, nor have they been what the safety of the Treasury demands. But, being desirous of presenting the case of this collector to the Mouse and country in the precise light in which they reached and viewed it, the committee will adhere closely to the order and to the facts in which it stands Uj)on their journal. Tlie committee being in session at New York, apprized Mr. Hoyt, the collector, of the fact ; and furnished him a copy of the resolution of the House under which the committee were proceeding. On the 26th of .lanuary the following resolution was passed in com- mittee without a division, and communicated by the chairman to the col- lector, to wit : On motion of Mr. Dawson, Resolved, That the collector of the customs for the district of New Rep. No. 313. lOT York be required to place before this committee the book containing a copy of all letters to and from the Treasury Department of the United States since the 1st tjf Januany, 1S37; also his book eoutaiiiiiig the rec- ord of all orders and instructions from that Department since the 1st of January, 1837. To which resolution the following answer was received from the col- lector : CUSTOM-UOUSE, Collector's Office, Netv York, Jan. 26, 1839. Sir : I have this moment received your communication of this day, covering a resolution in the following words : " On motion of Mr. Dawsoii, *' Resolved, That the collector of the customs for the district of New York be required to place before this committee the book containing a copy of all letters to and from the Treasury Department of the UnUed States since the 1st of January, 1837 ; also his book containing the rec- ord of all orders and instructions from that Department since the 1st of January, 1837." I now send you tv/o letter-books, which I am. informed by the only clerk now in this office during the time of Mr. Swattwoiit, (hat had any especial charge of the correspondence; which two books contain "the letters to and from the Treasury Department of the United States since the 1st of January, 1837," up to the time Mr. Siuartwout went out of office. I also send you a book of circulars, which the same clerk informs me is the only one he knows of. I am not aware of any others. If I have not interpreted the resolution correctly, you will be pleased to inform me. Very respectfully, your obedient servant, J. HOYT, Collector. Hon. James Harlan, Chairman, <§'C. The foregoing reply of the collector, and its accompaniments, bore upoiis its face a designed restriction of the c;dl made upon him to the letters, or- ders, and instructions that had passed between tlie Treasury Dep:iriment and the late collector, Mr. Swartwout, and embraced none of a sul^sequent date, or to which tlie present collector was a party, althougli the only legit- imate construction of which the call was susceptible embraced the latter as well as the former. Believing the documents withheld in this manner to be essential to the investigation, Mr. Dawson moved, on the 28th of January, the following resolution in committee : Resolved, That Mr. Hoyt, the collector, be required to furnish this com- mittee with all letters to and from the Treasury Department and the col- lector of the customs at New York; and also all orders and instructions from the Treasury Department to said collector since the 1st day of Jan- uary, 1837^ up to the present; day ; and the answers of said collector, if any, to said orders and instructions, not already furnished to this com- mittee. JNIr. Owens moved the following amendment : '" Provided thn said letters, orders, und instrnctioiis, have reference to the late defalcations embraced in the inquiry of this committee." 108 Rep. No. 313. On this amendment the yeas and nays were ordered, on the moiion of Mr. Owens, and decided in the negative by the following vole : Yeas — Messrs. Foster, Owens, Wagener — 3. ■'Nays — Messrs. Cnrtis, Dawson, Ilarlan, Hopkins, Smith, Wise — 6. The question was then taken on the original resolution ; and the yeas and nays ! eing ordered, on motion of Mr. Wagener, the resolution was adopted by the following vote: Yeas — Messrs. Curtis, Dawson, Ilnrlan, Hopkins, Smith, Wise — 6. Nays — Messrs. Foster, Owens, Wagener — 3. At the evening session of the same day, the following letter from the «ollector was received, and read in committee : CuSTOM-HOUSE, Colledor's Office, Nciv York, Jan. 28, 1839. Sir : I received your note at hwlf-past 1 P. M.this day, covering a res- olution, in the words and figures following, viz : :' Resolved, Tliat Mr. Hoyt,the collector, be required to furnish this com- mittee with all letters to and from the Treasury Department and the col- lector of the customs at New York, and also all orders and instructions Ifom the Treasury Department to said collector, since the 1st day of Jan- uary, 1S37, up to the present day ; and the answers, if any, to said orders and' instructions, not already furnished to this committee. " A true copv from the minutes. 'd in committee the following resolutions : Resolved, That, in response to the letter of Mr. Hoyt, of the 28th in- stant, the chairman be instructed to call upon him again to furnish this committee with all letters not heretofore furnished, from the several offi- cers of the Treasury Department to the late and present collector at New York, and from said col lectors to said ollicers of the Treasmy Depart- ment, since the 1st day of January, 1837, up to the 17th day of January, 1839; and, also, with all orders and instructions from said otFicers to said collectors, and the answers of said collectors thereto^ if any, not hereto- fore furnished, since the 1st day of January, 1837, up to the 17th day of January, 1839. jind be it further resolved, That this committee cannot recognise any authority or right whatever, in any collector, receiver, or disburser of the public money, to call upon " the committee," or " any of its members^"' to prefer or to disavow a charge of his" being a defaulter,''' before such of- ficer sends ^' the correspondence^- of his ^'- ofjice^'' when required under the authority of the House of Representatives, " to send for persons and papers,''^ to enable its committee " to inquire into, and make report of any defalcations among collectors, receivers, and disbursers of the public money which nvdy .7-iow exist f^ nor can this conifniltee, or ^^ any of its members,'- report whether Mr. Hoyt is, or is not, 7iow, a delaulter, until, by examination of the " persons and papers," for which it has sent anr/t'and the City Bunk. He then disclosed the following letters, which had passed between himself and these two banks prior to October, and not alluded to in the examination of the previous day : City Bank, New York, Fridai/, .ipril 27, 183S. Dear Sir : I have understood that the collector is not at liberty to re- ceive the notes of any bank that issues bills under the denomination of five dollars ; but this does not necessarily debar him from keeping an ac- count with any such bank. For any sum or sums of money which the collector now has, or may hereafter have, in this bank, specie will be paid if required. In fact, his deposites with us, in whatever they may be made, will be considered and held as specie deposites, and his drafts paid in sfjecie or otherwise, at the option of the holder. Very respectfully, your obedient servant, G. A. WORTH, Cashier. Jesse Hoyt, Esq., Collector. Rep. No. 313. 115 Custom-house, New York, June 12, 1838. Sir : I have deputed the bank of whirh you are cashier my agent to aid me in saiely keeping the public moneys which come into my hands by virtue of the otiice I hold. I have recently received a circular from lue Treasury Department, under date of the 1st instant, a copy of which I now enclose you, and the requirements of which I expect, as my agent, you will conform to. Yours, &c. J. HOYT, Collector. To Reuben Withers, Esq., Cashier. Bank op the State of New York, June 12, 1838. Sir : I am authorized by the board of directors of this institution to state to you, that for all deposites made by you in this bank, your drafts will be paid in specie, (if required.) I am, very respectfully, your obedient servant, R. WITHERS, Cashier. Jesse Hoyt, Esq. Mr. Iloyt's general statements and estimates of his possession and keep- ing of the public moneys being unsatisfactory, the cashiers of the two banks mentioned were summoned, and appeared on the 6th, although not finally examined then ; and Mr. Hoyt being present, had knowledge of the fact. The examination of him progressed as follows : Question 12. To whom has the 7 per cent, interest been paid by the bank or banks, for the use ordeposite of the money under protest, as yet? .6!nswer. No interest has been paid as yet by the bank to any one, as this witness knows. No interest account has been made up as yet, or been required to be made up. Question 13. What amount of bonds has been taken by j'-ou, under protest, up to this day? ^Inswer. After the difficuUy arose under the circular of the 17th of August, the protests became numerous, and I suggested to the bond clerk to open bond books, called " protest bond books." The exact time that this direction was given, witness does not recollect. Prior to this time, the bond intended to be protested was generally taken out of the ordina- ry bond book, and filed away with the entry, and a memorandum thereof made in the bond book, and on the duplicate entry lodged in the naval office. I have directed the bond clerk to make up the number of such bonds under protest, in answer to the niterrogatory, and the amount thereof, as near as practicable, and beg to annex that statement to this answer, as the best answer that can be given to the inquiry. Estimated amount of bonds taken under protest from the following pe- riods ; one-half of which is payable in three months ; the other half in six months from the date of the entry of vessels : 1838. From April 1st to September 30th, - - 543,182 " '' October 1st to December 31st, - - 48,670 1839. January 2d to February 6th, - ^ - - 54,260 656 bonds, amounting to ... i?l46,l]2 W. BLUXOME, Bond Clerk. February 6, 1839. 116 Rep. No. 313. Question 14. What amount of bonds taken by yon under protest has been paid up to this day? Jlnswer. The amount of money held by me under protest up to the close of business yesterday, was ^127,119 39; what amount is for bonds I cannot state, without a minute examination, for the reason that a por- tion of that sum is for cash duties, under protest ; and another portion is for bonds, under protest. I have not kept a distinct account of the sum paid for cash duties, and that paid for bonds. Tiie annexed statement shows the amount of tlie weekly returns sent to the Department of the Treasurer, and lodged with the Bank of the State of New York, and also the account held by me prior to tlie circular of the 17th of August ; and in regard to the last amount, which I estimated from memory la.st evening, I now beg to correct by this statement, made out by the clerk who has charge of that busine&s. Amount of money paid under protest : On hand prior to the 20th August, 1838, - - ^14,489 19 " on the 20th October, 1838, - - 40,698 75 « 27th " « - - 41,266 53 " 3d Nov'r, " - - 42,983 03 " 10th " « - - 44,948 01 « 17th " " - - 46,756 37 " 24th " " - - 51,489 78 "■ 1st Dec'r, " - - 54,743 92 " 8th " " . - - 55,388 59 " 15th " " > - 62,436 09 " 22d " " - - 73,134 83 " 31st " " - - 81,871 7S " 5th January, 1839, - - 84,545 54 " 12th " " - - 90,707 10 " 19th '• « - - 102,757 64 « 26th " « - - 113,718 53 « 2d February, " - - 124,443 95> Quest io7i 15. Has any, and what amount of money received under protest been returned to merchants ? Ansioer. It appears from my book, kept by the clerk who has charge of that branch of the business, that of the gross amount of money paid under protest, the sum of ^17,491 14 has been refunded, which book con- tains the record of all that has been received and refunded under protest ; and the balance, after deducting what has been refunded, is, as belore stated, the sum of Sl27,119 39, up to and including the 5th day of Feb- ruary, 1839. Amount refunded up to 20th October, 1838, - - iS 10,687 27 " 27th « « - - 1,087 33 " 3d Nov'r, " - - 844 68 « lOrh « « - - 617 42 « 17th " « - - 543 34 " 2-1th « « . - 334 97 « 1st Dec'r, « - - 575 54 « Sth « « - - 1,574 57 Rep. No. 313. 117 ^467 62 210 79 334 66 159 12 53 82 ^17,491 14 Amount refunded up to 15th December, 1836, " 22d " " " 3lst " " " 12th JaHuarv, 1839, a igth '' ' " Question 16. Has any, and what amount of money received by you under protest been paid into the Treasury of the United States? *^insiver. My correspondence with tlie Department on this subject leaves it in doubt on my own mind how I am to consider the question with reference to the understanding of the Department. I have frequently stated to it that it could use the money in its own way and form if adequate protection was given to me. In answer to one of my letters, the Secretary wrote me under date of 22d of December last, of which the following is a copy : Treasury Department, Dec^r 22, 1838. Sir : As heretofore intimated to you, the opinion of the Attorney Gen- eral has been taken upon the subject presented in your letter of the 17th of October last, a copy of which is herewith transmitted for your inform- ation. In view of this opinion, I would suggest, that the moneys held by you on account of duties paid under protest by the parties, as also those re- ceived on account of cash duties not ascertained at the time, should be placed to the credit of the Treasurer, so that they can be drawn for as needed ; but at the bottom of each weekly return the amount held for each of these objects may be enumerated. By this course no difficulty will arise till Congress legislate on the sub- ject, as they have been requested to do, because the accruing duties will always be enough to refund from, and the Comptroller or m^'self will give proper directions in all cases presented, for refunding duties which have been paid under protest. So in regard to duties not ascertained: any excess or deficiency can be regulated afterwards, when the duties shall have been actually ascertain- ed, until some legal provision is made by Congress. I am, very respectfullv, your obedient servant, LEVI WOODBURY, Jesse Hoyt, Esq., Secretary of the Treasury. Collector of the CustomSj New York. The following is a copy of the ophiion of the Attorney General, re- ferred to in the said letter : Attorney General's Office, Derr 19, 1838. ft Sir : I have the honor to acknowledge yours of the 7th instant, in •which you state that "it frequently happens, especially at the larger ports of entry, on the importation of some particular description of gotjds, that the importer disputes the duty, to whic'i the collector, acting under the instructions of the Comptroller, decides the articles in question to he liable 118 Hep. No. 313. under the tariff laws. But, with the view of getting possession of his goods, the importer pays under protest the amount of duty demanded by the collector, and at the same time gives that o.licer notice not to pay the money over to Government, and immediately institutes a suit against the collector to recover back the amount so paid." '■ Under these circumstances, the following question arises, viz: Can a collector legally retain in his hands, beyond the control of the Depart- ment, and distinct from his other funds arising from duties, moneys so received ?" In answer to this question, I would say that, under the laws of Con- gress in relation to duties on imported articles, it is the duty of the col- lector to carry into execution the instructions of the Treasury Department, and to conform his acts to them. If, in doing this, he shall collect more money than the judiciary shall afterwards, in an action against the col- lector by the importer, adjudge to have been due to the Government, there can be no doubt that it is the duty of the Government to save the collector from injury. But the question you present is of a very different character. It is, whether the collector has the legal right to retain the money so received in his own hands, beyond the control of the Depart- ment, &c. My o})inion is, that no such right exists; and that the collector should, notwithstanding such protest and suit by the importer, pay over to the Treasury all moneys by him received under such circumstances, as though no protest had been made or suit commenced. I am aware that it may be said that this course would expose the col- lector to inconvenience and loss. The force of this suggestion is not per- ceived. Now the collector keeps the money in his possession until the controversy is decided by the judiciary, and then pays over to the Gov- ernment whit m;iybe in his hands — that is, the Avhole collected by him, if the importer has failed in his action ; or, if the importer has succeeded, the balance which may be in his hands, after deducting the amount of the recovery against him. My impression is, that the law never intended that money collected for public purposes should be held by individuals to await the event of lawsuits. If the money be paid into the Treasury, and a judgment be fairly obtahied against a collector for an overcharge of du- ties, it would be the duty of the Government promptly to discharge such judgment and release the collector from its consequences. You say a similar point arises mider the following circumstances : "On an importation of goods liable to cash duties, some time unavoidably must elapse before the duties thereon can be calculated, and the exact amount payable ascertained. It appears to be the practice in such cases, to re- ceive from the importer a sum of money deemed sufficient to cover the amount when ascertained ; and any deficiency is afterwards made up, or the surplus refunded by the collector, as the case may be. These funds the collector designates as money taknn and held for unascertained duties.'* "The same question as the foregoing is presented in this case." It seems to me that the intention of those who originally framed our rer- cnne laws was, that the duties should be ascertained and paid, where cash duties are imposed, before the goods are delivered to the owner. But it is understood that in some ports this is wholly impracticable, and therefore a departure in practice from the idea which I iiave suggested is indis- pensable. This state of things could not have been foreseen by those who origi- Rep. No. 313. 119 nally passed the acts of Congress under wliicli the revenue is still collected. The vast increase of the coninrierce of the United States, and its concen- tration at particular port's, renders that impracticable wliich at an early- period could easily be effected. If the law cannot be executed according to its letter and probable intention, on accouiit of the altered condition of the affairs of the country, Congress alone can supply the proper remedy. In the mean time, however, until Congress shall act, such Treasury regu- lations should be adopted and enforced as will best secure the objects of the law. It could never have been the intention of Congress that a col- lector should receive money for duties under a ])rivate arrangement with the importer, and keep the money in his hands until it was convenient for him to cause the amount of duties to be ascertained. If such a practice were tolerated, it might be tlie interest of the collector to postpone the ascertainment of the duties, as, in the mean time, he would have the mi- controlled use of the money. It would also increase the danger of faith- lessness in the collector, by permitting large amounts of money to remain with him, and under his individual control, instead of being in the Treas- ury of the United States, The tenor and spirit of all our revenue laws seem to inculcate the idea that the intention of Congress has at all times been, that money collected for revenue should be promptly placed in the Treas- ury, and not be permitted to remain in the hands of the collectm-. There- fore, in any regulations you may make upon this subject, that object should be constantly kept in view. I am, sir, very respectfuUv, vour obedient servant, FELIX GRUNDY. The Hon. Secketary of the Treasury. To which letter of the Secretary I wrote to him on the 24th of Decem- ber as follows : New York, December 24, 1S3S, Sir: I wrote you on Saturday in relation to the form of keeping the account of cash deposited for unascertained duties; since which, I have yours of the 22d, accompanied by a co])y of tlie opinion of the Attorney General on this proposition, as well as on the propDsition to pay over the money received by me under protest. The. reasoning of the Attorm^y General is very sound on both points as to what the law should be ; and would be entirely satisfactory as to what it actually was, if the highest judicial tribunal of the land had not decided on one of them contrary to the conclusion at which the Attorney General has arrived. He does not seem to have adverted at all to tlie decision of the Supri.me Court in the case of Elliot against Swartwout, reported in 10 Peters, 1.37, M'here the subject was discussed, and substantially setiled, that the collector was not bound to pay over the money to the Government wh-'u he had received notice not to do it. But he says, what is very true, that " if the money be paid into the Treasury, and a judgment be fairly obtained against a collector for an overcharge of duties, it would be the duty of the Govern- ment promptly to discharge such judgment, and release the collector from its consequences." The duty of the Goverumcnt is one thing; the m in- ner of discharging that duty is another and different thing. It would seem, from his view, that a judgment must not only be obtained agninst a collector, but it must be "foirly obtained ;" and of this the Government 120 Rep. 1^0, 313. is to be the judge, as a preliminary step to the performance of an act of justice, which every one who has had any experience with the action of our Government knows is very often tardy. I do not, in the term Gov- ermyioit, as used by me, mean the present or any other administration of that Government, for the one is but the agent of and subordinate to the other. The question with me is, whether, under the present nervousness of collectors' sureties, I ought to do as an act of grace to the Government what the law does not compel me to do. That tiie law ought to be as the Attorney General seems to be of opinion that it is, there can be no doubt. But should I, who am already borne down by responsibilities of all kinds, roluntarily add to those from which I cannot escape, at the risk of every thing ? or rather should I not look to the language of the court in the case referred to, which I find to be thus? " Any instructions from the Treasury Department could not change the law, or arfect the rights of the plaiutitF. He was not bound to take and adopt that construction. He was at liberty to judge for himself, and act accordingly. These instructions from the Treasury seem to be thrown into the question for the purpose of showing, beyond all doubt, that the collector acted in good faith. To make the collector answerable after he had paid over the money, without any intimation having been given that the duty was not legally c'nargcd, cannot be sustained upon any sound principles of policy and law. There can be no hardship in requiring the party to give notice to the collector that he considers the duty claimed il- legal, and put him on his guard, by requiring him not to pay over the money. The collector would then be placed in a situation to claim an in- demnity from the Govenmient." This " indemnity from the Government," alluded to by the court, comes back to the proposition of the Attorney General, and leaves me a suppli- cant to the justice of the Government, without the power of enforcing any claim. I propose, when I go out of othce, that my accounts with the Government shall be settled in one hour by Shrewsbury, or some other good clock, whether that going out be by death, removal, or resignation; and whatever money should be held by me under "protest," I should cause to be deposited to the credit of the Treasurer, on the Government enga- ging to satisfy the claims of tlie parties protesting. The use of the money, in the mean time, I will give you, in any form you choose to have it, ex- cept the form which may leave me to the tender mercies of Congress, or to any change in the views of the administration. I will report to you weekly in any form you suggest. You can drav/ for it in like manner. Very respectfully, vour obedient servant, J. HOYT, Collector. I also received from the Comptroller of the Treasury, on the 1st instant, a letter, bearing dale the 29th of January, alluding to the same subject; to which I replied, under date of the 1st instant, by loiter, in the fol- lowing words: CuSTOM-nOUSE, Nciu York, February 1, 1839. Sir: I have your communication of the 29th January last, in relation to the form of keeping the accounts. Rep. No. 313. 121 Since the 1st of January- the money deposited for unascertained duties has been passed inunediately to tiie credit of the United States, and has formed a part of the money transferred weekly to the separate credit of the Treasurer; all of which has been duly notified to the Secretary of the Treasury and the Treasurer. I have laid your conmnnhcation before the cashier and auditor, and, as soon as we have the opportunity to confer together, we will advise you of the time when we shall be al)le to prepare our books and blank forms of returns to meet the suggestions of the Department. I write now to say, peremptorily, that I will not pass the money I re- ceive under protest to the credit of the United States until Congress makes provision fur my protcclion. For the reasons of this course, I beg to refer you to my former connnunications to the Depariment on the subject. The Supreme Court of the United States have pronoimced on the question; and it is due to the public service, as well as to the oliicers of the Govern- ment and the merchants, to have the question definitively settled. If I per- severe in the course which the highest judicial tribunal of the land has sanctioned, the duty of Congress to interfere is the more striking, and, I should suppose, could not but lead to an early interference by Congress. The money, as the Department has been advised, is drawing seven per cent, interest. The fund is fast increasing, and will continue to increase until the litigated points are adjusted by Congress. I will not venture to speak of the delay or inattention to the public busi- ness on the part of the representatives of the people, because it would not become me to do so: but if any other class of public servants managed the pubHc business in the same way, I should think they ought to be dis- missed the service incontinently. Very respectfully, your obedient servant, J. HOYT, Collector. To J. N. Barker, Esq., Comptroller^ fyc. On the 4th instant I received a letter from the Secretary of the Treas- ury, under date of 2d instant, of which the following is a copy : Treasury Department, February 2, 1839. Sir : I have to request that you will deposite the sum of two hundred thousand dollars in the Dank of America, at New York, to the special credit of the Treasurer of the United States, and transmit the certificate of deposite to this Department. It is done in order to redeem Treasury notes, I am, respectfully, your obedient servant, LEVI WOODBURY, Secretary of the Treasury. To Jesse Hoyt, Esq., Collector. To which I made the following answer: Custom-house, Xeiv York, February 5, 1839. Sir: Your letter of the 2d instant did not reach me till afier business hours of yesterday. By this letter you •• request me to deposite the sum of §200,000 in the Bank of America, to the special credit of the Treasurer of 9 122 Rep. No. 313. tho United States." Yon omit to state to iiie out of what fund iliis deposit-? is to be made. By i)revious instruction, I was directed to tra^tisler; on the Saturday of each week, to the separate credit of the Treasurer, all the moneys in my hands, to be appUed to the drafts of that officer. I liave contiuued to do so since the receipt of those instructions. I accordingly transferred, on Saturday last, $130,000, whieli, by my weekly returns transmitted yesterday, you will perceive left in my hands the sum of §8,296 85 to the credit of the United States, to be accounted for in the next returns, part of which had been actually disbursed for the benefit of the United States, and charged in my cash book to suspense account ; the regular vouchers for the expenditure not having been rendered. You may have intended this deposite of §200,000 to be applied to the moneys received by me under protest and for deposite for unascertained duties prior to 1st of January last. If that be your intention, 1 iiave to observe : 1, It will appear by the weekly returns transmitted yester- day, that the fund under protest amounted to - - ^124,443 95 2. Tliat the deposites bv the same return amounted to the sum of - - ' - - - - - 54,.906 40 Making together the sum of 3. My nett receipts yesterday were 4. Balance on hand yesterday ;i79,350 35 ^23,013 94 8,29(i 85 31,310 79 ^210,661 14 The sum of S31,310 79 is the only sum in my hands to the credit of the United States for the general balance of receipts from custom^. But in relation to the two hrst items, amounting to S 179,350 35, I have to say : 1. Concerning the money received under protest, I wrote you, on the I9th October last, that I had made an arrangement with the B.uik of the State of Now York, in which bank I kept an account, to receive 7 per cent, interest for that liind. I sent you a copy of my correspondence with that bank, as evidence of the agreement, which you have not, as I believe, dissented from, except by inference from the fact that you for- warded me a copy of an opinion of the Attorney General of the United States, in a communication under date of December 22, which attenij)ted to show that I was bound to pay over that fund to the credit of the United States. On the receij)t of which opinion I availed myself of the first leisure moment, on the 4th of January, to dissent I'rom it; and gave you to understand that I would not consent, under any circumstances, to be bound by it, for the reason that the Supreme Court iiad decided that I was not bound to pay over money under such circumstances. Subse- quent to this, I noticed an article in the Washington Globe of Januar}- 23, taking the same ground that I took, in an essay in vindication of the Department for ivJglectiiig to call on Mr. Swartwout to pay over the money which he had received under protest, and which article alluded to the decision of the Supreme Court of the United States to which I also referred. 2. I wrote to the Comptroller on the 1st instant, in answer to his in- structions under date of the 29th of January, that I peremptorily refused Rep. No. 313. 123 to pay over the money, for the reasons assigned in my prcvions com- munication to the Department. 3. Under this state of things, and especially as the United States was deriving on tii:' fund a larger niterest than it was paying for t!ie money it borrowed on Tre.isnry notes, and in my judgment was securely placed beyond ;i. possihiliiy of doubt, I did not think the Department would draw for it, ihougli 1 liad frei[uently written ttiat it might, provided it was drawn in such a manner as tj alford me protection. 4. In regard to the deposite for unascertained duties, althoug'i I have, since the 1st of January, passed the money immediately to the credit of the United Stales, yet I have serious doubts whether I ought to do so ; and I have serious daui)is, also, whether I wid continue to do so after the present quarter, unless Congress legislates upon the subject. Recent investigations and developments admonish me of the importance of assuming no more responsibilities than are thrown upon me by poshive enactments of law. The receipts 1 give for deposites for unascertained duties, make me personally responsible for tlie ditference between the duties actually accruing and the sum deposited ; and which siun deposited I immediately pass to the credit of the United States, without any posi- tive guaranty that the United States will refund the dilference in dis- charge of my personal liability. I go into this discussion now for the purpose of suggesting the expe- diency of your asking the C.)mmittee of Ways and iMeans to embrace this question as a kindred one to the protest subject, and that a section should be introduced to obviate the ditticulty on this as well as the pro- test question. I have given you now the substance of the pecuniary condition of mv oflicial adairs. I have deposited the $^00,000 as you request. If the Treasurer draws for all that stands to his credit, I may be compelled to annul the agreement with tne State Bank, without your direct authority, unless yoa intendi'd to anticipate the receipts of all this week, the proba- ble am.onnt of which I have not had the leisure to ascertain from investi- 'gation. Our cash duties yesterday were short of g 10,000, which is a fallins: otT. We have been somewhat busy since the committee have been here, as you may well imagine; and it has been with dilficulty I liave been able to get off my ordinary accounts. The auditor has been before it most of the time for the last tan days. In your future directions for the deposite of money, I would be glad of a designation of the fund from which the deposite is to be made. I de- sire only to have matters of this kind ilistinctly understood. I endeavor to give you, from lime to time, sucii minute details of our business at this port as to keep you well informed on tht^ subject ; and I do not fail to object in time to any proposed arrangement which strikes me to be objectionable; and to this end I have made this communication. I have apprized the Treasurer of the deposite, and sent him a duplicate receipt. I am, sir, very respectfully, your obedient servant, J. IIOYT, Collector. Hon. Levi Woodbl'rv, Secretary, i^-c. Under this state of things, it is a matter of doubt, in my own mind, whether by implication I have or noi paid the protest fund into the Treasury. 124 Rep. Xo. 313. I omitted to slate, in the proper place, another reason for the accumu- lation of protests; which was, as I supposed, owing to the fact of the De- partment iiavinq decided, in June last, that it could not refund money received by Mr. Swartwout, except it was paid to him under protest, and that in all othtr cases application must be made to Congress. This, in my judgment, tended to an accumulation of protests. In reference to that part of the letter last referred to, which adverts to the deposites for unascertained duties, it will be seen that I raise a doubt OS to the Yisht of the Government to liave the moneys deposited for un- ascertained duties placed to its credit at the time the deposite is made. That doubt is now again referred to, from the fact that a claim was made, a few days since, for a deposite on a certificate therefor alleged to be lost. I refused payment, on the ground that the certificaie was negotiable, and it must be surrendered up on payment; when a suit was threatened, * which led me to examine the terms of such kind of certificates, and I came to the conclusion that the collector was personally responsible ; and in the event of the whole deposite being placed to the credit of the United States, the collector would be compelled to refund from his own means, in case of a recovery, and that, therefore, the money so deposited for un- ascertained duties depends upon the same question as that involved in the money paid under protest. It has been universally considered at this port, as I have understood, and always believed, that the deposites for imascertained duties were not public moneys ; and the various collectors heretofore occupying the place have not considered them as such. The importers have a right to de- posite portions of their invoices as security for duties on the remainder, which does not operate as a change of property in the thing deposited, but remains as a pledge in the hands of the pledgee, who is the person hold- ing the office of collector, and he alone is responsible for the forthcoming of that pledge. Having heretofore yielded to the suggestions of the Department in re- lation to this fund, from the 1st of January last, without raising a question on this point of legal right, or the necessity of legislative protection, but assenting to what might be deemed a sacrifice to public opinion, as con- nected with recent developments, I now raise the question before those who can. by their public situations, do much to remove those doubts by the enactment of laws. Since writing most of the preceding answer, I have received a letter from the Secretary of the Treasury, under date of February 4, in the words following ; which seems to be a reply to my letter to the Comptroller of the 1st of February : Treasury Department, Fch7'u(n'y 4, 1S39. Sir : Finding from a report just made to me by tlie Comptroller, that new difficulties have arisen between that officer and yourself, in regard to the disposition of the funds received ''for duties paid under protest," 1 propose, with a view to obviate those difficulties, to have a weekly state- ment furnished to this Department by the bank holding the fund paid for duties under protest; and to have a stipulation from the bank to the United States, that it be held solely to be drawn out to pay refunded duties on your part, and, in all ca.ses when not refunded, the amount on Rep. No. 313. 125 deposite to be carried to the credit of the Treasurer of the United States, and to be drawn out by him. I liave to request that you will submit this proposition to the bank, if acceptable to you; and if acceded to on its part, you will be i)leased to forward a stipulation from tiie bank to the United States to that effect. You will be required to forward monthly statements of your transactions under this arrangement, until Congress legislate, or a further opinion is obtained from tlie Auorney General. By this arrangement you and the Govermnent will both be secure. I am, very respectfully, your obedient servant, LEVI WOODBURY, Jesse Hoyt, Esq., Sccrelury of the Treasury. Collector of the Customs, New York. Question. 17. Are tbc letters and correspondence already presented in your answers all the communications from the Secretary of the Treasury to you, or from you to him, or from the bunks to you, or from you to them, addressed to and from you as collector or individually, in relation to your duties as collector, and to the funds in your hands under protest or otherwise ? Answer. I sent to the committee on the SOrh of January all the ollicial letters up to the 17th of Jaruiary, from the Treasury Department to me, in relation to the collection and disbursement of the public moneys, so far as I was able to discover them in my possession, and so far as I now recollect. I have alluded to all that I have since received in my former answers ; and, I also believe, have given you copies of all my letters to the Department on that subject, bearing date since tiie 17th of January. I have given you, also, copies of all my correspondence with the banks in relation to matters inquired about. I have received at various times private and unofficial letters from the several oiiicers of the Treasury Department, which I do not feel myself at liberty to surrender or lay be- fore the committee, without the consent of the writers. I have never been requested to withhold those letters, or any other information what- ever ; but as the committee have the power to call for copies of sucii letters from the writers thereof, I would prefer that the writers should take the responsibility, if any there be, in relation to the revelation of a private correspondence. It will readily be perceived from the preceding testimony, that nothing definite or satisf.ictory could be gathered by the committee as to the amount of public money actually on hand in bank to the credit of Mr. Hoyt, either derived under protest, or otherwise, however explicit the tes- timony may be considered in its designation of the only banks employed by him as depositories, or of the terms upon which they are officiating as his depositories. How much of these same deposites have been, from time to time, drawn out and used by Mr. Hoyt for purposes of specula- tion, expected to yield more than the seven per cent, interest he had arranged for in relation to a part of it ; or whether it has been more frequently drawn out, or for other purposes used, than has been demand- ed by ills oflicial duties ; or whether the amount of his deposites now on hand, either of protest money, or of other money collected by liim for the Government, corresponds with the amonnt which should be on hand ; and whether or not, by the transfers in the books of his banks, 126 Kep. No. 313. the Government appears to liave actually received any of the protest money or not, about wliicli Mr. Hoyt atiecls to be in doubt, ivS in no satis- factory degree disclosed by Mr. Hoyt. Only allusion being made to some of his answers from the Department, witliout furnishing copies of more than it answered iiis own jiurpose to select, and a refusal to disclose the oriiiinals, or the im])ort of others, beinir also made on the ground of their being "pj-iva/e and imajJiciaU''' nithoiigh relating to the public moneys, it is obvious that the relations of Mr. l;oyt to ilie jmblic moneys, and the correctness of his returns, could not but assume, in the estimation of tlie committee, a most suspicious aspect; and that neither the duty which the committee owed to itself, or to the House and country, would justify them in leaving untried otlier sources of j)osilive and record information on the subject ol' this inquiry. But, beyond and paramount to the considerations just adverted to, which cast shadows over Mr. Hoyt's })Ossession and oflicial returns in relation to the public money, however correct these may be in form, the committee could not but feel new admonitions to persevere in reaching the true state of his accounts, from the disclosure in the correspondence of Mr. Hoyt with tjie Treasury Department in his foregoing testimony, wherein lie sets up absolute contiol over laige and accumulating sums of the public money, not only against the advice and instructions of the Comptroller of the Treasury, and of the Secretary of the Treasury, but also against the official decision of the Attorney General, and in the spirit and the language of contemptuous disregard of tliem all ! If any thing was left to add alarm to the minds of the committee, on discovering sucli to be the condition of the jiublic moneys at a port where nearly two-tliirds of the whole revenue is collected, it is to be found in the tamencss with which the accounting- officers of the Treasury, and the Secretary of the Treasury, have submit- ted to so dangerous an assumption of power in a subordinate executive officer. In the judicial authority upon which this collector falls back and hurls deiiancc, if not contempt, at the instructions and opinions of the wliole corps of superior executive officers to whom he is accountable, nothing is to be found to justify the one for asserting, or to excuse the other for sub- mitting to a practice, which the Attorney General has justly characterized in liis decision as calculated to interest the collector in posl]:o)ii7ig the ascertainment of duties, that he may in the vieiin time have tlie use of the money ; aiid to '' iyicrcasc the danger of faithlessness in the collector, by jicrrnitliiig large amonnls of mejncy to Teviain with hi^n, and under his individual control, instead- of /icing in the Treasury of the United States.'' Tlie judicial decision cited l)y the cf)Uector conveys no authority to the collector for refusing to take and adopt the construction of law in re- gard to duties i)aid under protest, which the ax'counting officers of the Treasury enjoin upon the observance of the collector. The opinion of the Attorney General, on the other hand, expressly declares, "it is the duty of the collector to carry into execution the instructions of the Treas- ury De[)artment, and to conform his acts to them." Nor does the court indicate that the collector is at liberty "to judge for himself, and act ac- cordingly." These attributes/ are only accorded, by the decision of the court cited, to the party paying the duties, and not to the collector who receives them; to the individual plaintitf, and not to tlie defendant officer. And the language of the court, that the collector is by the protest "placed Rep. No. 313. 127 in a situation to claim an indemnify from the Government," clearly indi- cates that this indemnity of the collector is to be sought rightfully after, and not before, the duties ])aid have been adjudged by the competent tri- bunal to be a wrongful exaction. It may be added, that even in the libertinism of Mr. Swartwout^s co)i- trol and use of the public m.oney is to be fonnd no precedent, until his re- tirement from office, and his actual defalcations must otherwise be ex- posed, for the course thus pursued by the present collector in relation to moneys under protest. This course originated only with the latter. The testimony that follows is explicit on this point. Mr. Fleming, audilor of the custoins, examined by Mr. Owens. Question 5S. From your position in the custom-house at New York, and your Vinowledge of the manner of transacting its business and keep- ing the accounts, say whether o?ie of (he principal causes of theiate de- falcations was not the practice of the collector retaining large sums of money in his hands to meet stdts or protests for duties overpaid. State how long such practice has been in existence; whether it was established by the Department at Washington: or whetlier, under the decisions of the courts of justice, the collector is not considered perso?ialli/ responsible for such claims, and therefore authorized by the same decisions to retain in his hands the money of the United States to meet them? t^inswer. Mr. Swartwout, on his retirement from office, retained tlie sum of about §201,000; and assigned as a reason to the Secretary of the Treas- ury, that it was to protect himself against judgments upon suits at law for duties alleged to have been wrongfully exacted, and paid under protest ; but he was not in the practice, during his collectorship, of retaining moneys for such purposes. When duties were paid, the amounts v\'ere placed to the credit of the Treasurer of the United States at once ; and in the event of a decision being obtained against the collector upon any suit at law, it was his practice to write to the Comptroller of the Treasury upon the subject, to obtain his authority for the payment of the judgment. The collector is considered /?er.so?i.'///y responsible tor ail such claims, and execution issues against his private property. Impelled, therefore, by the strongest sense of duty, to obtain the fullest information on the subject of Mr. Hoyt's deposite and use of the public money, as the only test of the correctness of the returns he has made to the Treasury Department since he has been in office, the committee, on xhe 6th of February, commenced the examination of the two cashiers mentioned by Mr. Hoyt. The following, from the connnitiee's journal, illustrates this proceeding: Gorham Ji. Worth was sworn as a witness. Examined hy Mr. Smith, Question 1. Are you cashier of the City Bank of New York, and are you in charge of the books of record and accounts, and the official papers of said bank? Has said bank been a deposhe bank of the Govennnent 128 Rep. No. 313. of the United States ? If not, has it been a deposile bank of the present collector of the port of New Yoik ? If yea, when did his fust deposite as collector commence ? And has he ke])t an individual deposite ni your bank, apart from ins account as collector ? Jinswer. I am cashier of the City Bank, and have charge of die books, &c. The City Bank has not been a Government deposite bank at any time. It has been a deposite bank of the present collector of this port. The account was, in the first place, opened with Mr. Hoyt, as collector — say on the 4th of April last. That account, however^ was closed after a short time — some 30 days — and the account then opened with Mr. Hoyt in his individual capacity, and so remains at this time. Question 2. In Mr. lioyt's individual account, referred to in your last answer, has there been made any designation by Mr. Hoyt of the sources from which any portion of his funds thus deposited are, or have been, de- rived ? What agreement, if any, lias existed, and what agreement still exists, between said bank and Mr. Hoyt, relative to said deposites ? Please state, in detail, wlien it commenced, and whether any that now exists is the substitute of any previous agreement; and also Mduit such previous agreement was, and when made. Ansiver. Mr. Hoyt's deposites were made, like all other deposites in bank, by simply leaving the money to be placed to his account, without any designation other than the aminini, at the time of deposite. The only ugreemenf made with Mr. Hoyt was. tliat his deposite should be consid- ered as gold and silver, and that his checks should, at all times, if required, be paid in gold and silver. This agreement was made at the time of his first deposite. Question 3. What has been the aggregate monthly balance of said de- posites siuce the agreement to which 3'ou allude? [The witness was permitted to take this question away with him, in order to obtain the details of the answer required.] On the 7th of February, Mr. Worth appeared and answered as follows; (Extract from comiTiittee's journal.) Examination of M/'. IVort h xe'^iwmeA. E.va')Hincd by Mr. Smith. Question 3. [This question the Avitness had been permitted to take away with him yesterday. See journal.] 3. What has been the aggregate monthly balance of said deposites since the agreement to~ which you allude ? Answer. In reply to the above interrogatory, ])ro])ounded to me yester- day, (rjth Feliniary,) I answer, that I decline answering it : not deeming myself at liberty, by the rules and regulations of the bank, to expose the details of an individual depositor's account. Question S. Have you, since the above interrogatory was ])ropounded to you, had a consultation with Mr. Hoyt on the subject of the said inter- rogatory .•' If yea, please state the substance of such consultation. Answer. I must decline answering the question. Rep. No. 313. 129 Mr. Withers was also called again on the same day, and examined as follows : Examination of Reuben fVithers. Exatnined by Mr. Siniih. Question 1. Are yon cashier of the Bank of the State of New York, in the city of New York; and are you in charge of the books of records and accounts, and the official papers in said bank ? Has said bank been a deposite bank of the United States? Has it been, or is it now, a deposite bank of the present collector of New York? If yea, when did his fn'st deposite as collector commence ? Has Jesse Hoyt kept an individual account and deposite in your bank, apart from his account as collector? Jinsioer. I am cashier of the Bank of the State of New York, and have charge of the books of records and accounts, and official papers of said bank. Said bank has not been a deposite bank of the United States. I beg leave to answer by giving a copy of a letter from the collector, dated June 12, 1838, on which day a deposite was made by Mr. Hoyt in his own name, and the account has been so continued to the present time; which is the only acconnt kept by this bank with Mr. Hoyt. [The letter of June 12th, exhibited by witness, as also the other letters subsequently alluded to in Iiis testimou)!', are the same as heretofore given in conjunction with Mr. Hoyt's testimony.] Question 2. Mr. Hoyt's account in your bank, though in his individual name, being represented in your answer to the foregoing interrogatory, and in the letter of Mr. Hoyt of the 12th June last, to be an account of public money, you are asked what agreement, if any, was made between you and Mr. Hoyt, either verbal or written, in respect to his account on deposite of mone^^ in your bank. Was there any, and what, agreement or understanding that the bank should pay interest on the deposite, or any part of the deposite, and what part, and what rate of interest ? ^nsioer. From the 12th June, 1838, to the 19th of October, no agree- ment, either written or verbal, was made with Mr. Hoyt in regard to his account, except that his checks should be paid in the legal currency of the United States when required by the holder. On the lytli of October I received a letter from him, a copy of which I now enclose, with a copy of my answer. Since that time I have been furnislied with a weekly statement of the amount held by him under protest, subject to that agree- ment. Question 3. What has been the aggregate weekly balance of said de- posites in your banlc since the commencement of Mr. Hoyt's account in your bank as collector, and since his deposite of public money in his own name with your bank commenced ? ,/lnstver. I do not feel warranted in answering this question without the authority of the board of directors. At the foregoing examinations Mr. Hoyt was present, and heard the refusal of eacli cashier to furnish the committee with the information de- sired. They took place at the day session of the committee, at the custom- house, on the 7th of February. At the evening session of the same day, the examination of Mr. Hovt was contiiuied as follows : 130 Eep. No. 313. Examined by Air. Sm ith. Question 23. Please state what have been the aggregate weekly bal- ances of your deposite accounts in the Bank of tlie State of New York and the City Bunk of New York, respectively, since you commenced ma- Icing deposites of the public money as collector, or in your individual name, in said banks respectively. Ansioer. I cannot state what has been that aggregate balance. My rule is to have the bank-book balanced on the last day of each month ; but I cannot state from memory what the aggregate monthly balance is. It varies very much. I do not make up weekly balances, and it is only when the bank-book is balanced that the true balance in bank appears upon the exanjination of both parties — that is, the drawer and payer of the checks. It has frequently happened that the Treasurer has drawn on me for more money than appeared by my weekly returns to be to his credit ; but such drafts have always been met and paid, and are drawn on anticipated weekly receipts ; and it frequently happens that drafts are drawn on me that are not presented for payment in 20, 30, or 40 days ; and often drafts are protested in consequence of the regulations of the raih'oad line between this and Washington, before any notice of the same having been drawn ; but such drafts have also always been paid. Question 24. Will you explain how drafts or warrants on you can affect your hank-account of deposites, so as to alter the balance thereof, until after such drafts or warrants have been presented to you, or you are called on to meet the same ? ,/2nsioei\ The drafts on me are paid generally by my checks on banks, and the amount of checks drawn for such drafts materially affects the bal- ance I have m bank ; which balance grows out of deposites made and checks drawn, I do not recollect that any " warrants" have been pre- sented to me for payment, and, therefore, I do not refer to any such trans- actions ; therefore they do not affect my balance in bank, nor does any draft on me alfect my balance in bank until I have checked for that draft. Question 25. Do you or not keep, or cause to be kept, by a clerk, a book into which is entered every deposite in bank of the public money which you make, and also every check you draw upon such deposites; and if yea, can you not by such book tell the balance you have on de- posite at any desired periods ? Jlnswer. I keep no official bank-account, nor have I any authority to keep such accounts. I employ the banks as my own agents, and not as agents of the Government. 1 make no distinction in such deposites be- tween my own money, and the money for which I am responsible to oth- ers. I keep no separate book of deposites for money of my own, and money for which I am responsible to others. I deposite money, if I have any, belonging to professional clients, in the same banks, to the same ac- count that I deposite other money; and the banks know no distinction as to the persons who may have a claim upon me for that money, except the Bank of the State of New York, as to a portion (as before stated) of that deposited relating to money paid under protest. I could, by an examina- tion of my bank-book, tell the amount of deposite and the balances weekly; but for the amount of money 1 am answerable for to the United States, I can only tell by an examination of the books of the collector's office, which I will submit to the committee, when it will have the opportunity Rep. No. 313. 131 of seeing whether I have a sufficient sum in bank to pay the riovernmeiit all the money I have ever received, ;uid not disbursed according to law, for the use, behoof, or benefit of the Government. Question 2G. Can yon or not, by j^'onr own book of deposites in bank, ascertain the balance which you iiave had in bank at the end of every week, derived from payments under protests ? If yea, please state what such weekly balances have been since you came into ofiice. Ansioei\ No. The amount deposited for moneys under protest is made up from my own book, and upon my own responsibility. It does not ap- pear daily, weekly, or monthly, by the book of deposites, wliat portion of such deposites is under protest. The bank, I believe, is willing to take a copy of my return to the Department as evidence of the truth of the amount of money received and deposited under protest. When it expresses any doubts as to the truth of the statement, they will notify me, and I will endeavor to satisfy them on the subject. Question 27. Will you state whatdistincticm yon make between " your own book of deposites in bank," as you have understood it in my last in- terrogatory, and "your own book," to which you allude in your last an- swer ? i^lnswer. The book of deposite is understood to mean the book on which the bank credits the amount deposited ; or, in other words, it would be called a "pass-book" between the dealer and the bank; or, to be more specific, it is a book in which the bank makes an acknowledgment that the individual depositing has deposited on a given day a given sum of money. The person depositing does not keej) what he calls a "book of. deposites," but he does or not, as he pleases, make a charge on some book p.gainst the bank for the sum deposited. Some keep one kind of book, and some another. Some enter the amount of deposite on the margin of their check-book, others make no entry at all, but carry the amount in their memories. I debit the amount of deposite on the margin of the checl>- book ; but this is held to be but a memorandum for the person drawing the check, as to the amount deposited. I do not keep any book called my "own book of deposites in bank." My account of moneys received under protest is entered as it is received in what is called the protest- book. Sometimes more or less entries for the day are made in that book, and the money is deposited in bank. At the end of the week I make up, in the form of an account, the gross amount deposited for the week. A copy of that amount I forward to the Treasurer and Secretary of the Treasury on Monday of each week, and a like copy leave with the bank on the same day. The book of protest is resorted to, and not the " bank-book" or "book of deposites in bank," for the correctness of that account. Question 2S. Canyon or not, by your "protest-book," mentioned in your last answer, ascertain the balance which you liave had in bank at the end of every week, derived from payments under " protest ? If yea, please state what such weekly balances have been since you came into office. ^inswer. I can, and have already filed that account, in answer to a question put by Mr. Wise, one of the committee. The indisposition of Mr. lioyt to furnish the committee with full in- formation on the subject of his deposites of public money in bank, so as 132 Rep. jN^o. 313. to enable it to understand what sums had been drawn out, when, and for wliat purposes, as well as what sums liad been deposited, induced one more effort on the following morning to derive the hiibrmation from his deposite banks; accordingly, on the next morning, at the opening of the session, Mr. Withers was sent for, appeared, and, in the presence of Mr. Hoyt, was examined as follows : The examination oi Mr. Withers was resumed. Examined by Mr. Smith. Question 4. Have you had any consultation or other intercourse with Mr. Hoyt, the collector, since you were summoned as a witness before this committee, on the subject of answering interrogatories relating to Mr. Hoyt's deposites in your bank ? If yea, state the substance of such con- versation. ^dnswer. I have not. Question 5. Has the board of directors of your bank been consnlted by yourself, or any other person within your knowledge, to either make or prevent a disclosure of tlie state of Mr. Hoyt's deposites in said bank, as sought for in the third interrogatory above ? Answer. The board of directors have not been consulted, to my knowl- edge, on the subject of Mr. Hoyt's account. In my answer to the third interrogatory I was governed by the by-laws of the bank. When the last answer of Mr. Withers was given, Mr. Smith, by leave of the committee, propounded the following interrogatory to Mr. Hoyt; to which the latter gave the answer thereto subjoined: The examination oi Mr. Hoyt was resumed. Examined by Mr. Smith. Question 2,9. Are you or not willing for the cashiers of the Bank of the State of New York and of the City Bank to furnish this committee with a statement of the weekly or monthly balances of your deposites in said banks since your term of office as collector commenced ? If nay, please state your reasons in full. Jinswer. From an occurrence that took place in the committee-room last evening, I made up my mind that it was necessary to make a com- munication in writing to the committee. I stated to the committee, be- fore I commenced this answer, what I desired, and that the letter would be before the committee in about twomiiuites; and, since conmiencing the writing of this answer, said connniuhcation was brought to the com- mittee, and handed by me to tlie chairman thereof; and, tnitil an answer is made to that communication in some form or manner to indicate to me the sense of the committee upon the same, I decline answering the inter- rogatory. Rep. No. 313. 133 The following extract from the journal of the committee exhibits the continuation of the committee's proceedings in relation to ]\Ir. Hoyt: Mr. Sniith olfered the following resolution: III consideration that Reuben Withers, Est]., has testified to this com- mittee that he is cashier of the Bank of the State of New York, and has charge of the books of records and accounts, and official papers of said bank, and has also connnunicated in his testimony to this conmiittee the copy of a letter from Jesse Hoyt, Esq., collector of the port of New York, to the said Withers, in his said capacity as cashier, under date of June 12, 1S38, informing said cashier that said collector had deputed said bank his "■agent to aid him in safely keeping of the public moneys which come inio his hands by virtue of the office he holds :'''' And in consideration that said Withers has declined, when called upon for the purpose, to furnish this connnittee with information of the aggre- gate weekly balance of said Hoyt's deposites in said bank ''withouTthe autliority of the board of ilirectors" of said bank, and sulisequently on the ground that in such refusal he "was governed by the by-laws of the bank :" And in consideration that said Hoyt has been subsequently asked, by an interrogatory ])ropouuded to him in committee, to give his own con- sent for said cashier to furnish this committee with the information thus sought by this committee respecting the public money deposited by said collector in said bank for safe-keeping, or to give any reason satisfactory to this committee for withholding such consent : Be it resolved, That the chairman of this committee be directed to issue a siibpccna duces tecum, summoning said Reuben Withers to ap- pear forthwith before this committee, and to bring -with him either the original l)Ook of the deposite account of Jesse Hoyt, kept by said Withers as cashier of the liank of the State of New Y^ork, or, in lieu of such book, a true copy of said Hoyt's account of deposite, as the same appears on the books of said bank, since the 1st day of Warcli last past. Be it further resolved, That, from like and similar considerations as are stated above, a similar subpcvjia duces tecum be issued by the cJiair- inan of this committee to Gorham A. Worth, Esq., cashier of the City Bank in the city of New Y'ork. Mr. Foster moved to amend the resolution, by striking out all before the words " Be it resolved," and insert, instead thereof: '• Whereas Mr. Hoyt has declined to answer the above interrogatory, except as above stated, therefore." Mr. Foster called for- the yeas and nays, and the amendment was re- jected : Yeas — Messrs. Foster, Owens, Wagener — 3. Nays — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — G. The question was then put on Mr. Smith's resolution, the yeas and nays having been called by Mr. Owens, and the resolution was adopted: Yeas — Messrs. Curtis, Dawson, Foster, Harlan, Hopkins, Owens, Smith, Wagener, Wise — U. Nays — None. Mr. Owens moved that the writteti commimication of Jesse Hoyt, col- lector, to this committee, be now read. Mr. Curtis moved the following amendment to Mr. Owen's proposition • Resolved, That Mr. Hoyt be informed by the chairman that his an- 134 Rep. No. 313. swer to the last interrogatory propounded by Mr. Smith is not definitive to the question, and that tlie comuiittee cannot allow him to dictate the order ot' their proceedings, or the terms upon which he will respond to its inquiries; and that if said answer of Mr. Hoyt be retracted, and a perti- nent answer giv'en, the committee will receive and act upon his written communicatioti, and not before. Mr. Owens called for the yeas and n;iys ; and the amendment was adopted: Yeas — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. Nays — Messrs. Foster, Owens, Wagener — 3. The question on the proposition as amended was then })ut,and decided in the ailirmative ; the yeas and nays liaving been called by Mr. Owens- Yeas — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. Nays — Messrs. Foster, Owens, Wtigener — 3. Mr. Wise offered the following resolution: Resolved, That this committee will not receive any communications from Mr. Hoyt until he answers the interrogatories which have been propounded lo him. Mr. Owens called for the yeas and nays, and the resolution was adopted: YK.^g — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. Nays — Messrs. Foster, Owens, VV'agener — 3. Reuben IVithers appeared before the coniniittee under a iubpcena duces tecum, issued this morning, and his examination was resumed by Mr. Smith. Examination of M?-. Withers resumed. Examined by Mr. Smith. Question 0. Have you been served with a subpoena from this com- mittee, directing you to bring the books of the Bank of the State of New York containing the account of the deposites made in said bank by Jesse Hoyt since March last, or, in lieu thereof, to bring a true copy of such account? If yea, do you produce said books or copy? and if not, please state your reason for omitting so to do. ^'Insiver. I have been served with a notice to produce the books of the Baid{ of the State of New York relating to Mr. Hoyt's account, or a copy thereof; which I decline producing, for reason given in my previous an- swer. Mr. Foster called up -for consideration tiie resolution offered by Mr, Hopkins last night, for adjonrnment to meet in Washington city; and moved to amend if, by striking out all after the word " Resolved,^'' and in- serting the tbllowing : Whereas, in the course of the investigations of this conimittec, wit- nesses have been introduced and sworn, whose testimony has tended to eharge the present collector of the port of New York wUh ofiicial mis- conduct: and whereas the said collector has applied to this committee for permission to be heard in relation thereto, and to go into a full investiga- tion thereof, by witnesses to be produced by him, and requesting that such full investigation may be had here, (in the city of New York.) where he alle"-es that the witnesses which he wishes to introduce reside: and whereas it is due to the fair and full administration of justice that the Rep. No. 313. 135 said collector should have a lull opportunity to rebut the charges thus made agahist him : and wliereas several witnesses are now under exami- nation before this committee, the testimony ol" whom is not yet cio.-ed : and whereas, from the tact that several witnesses have been under ex- amination at the same time, the testimony of several of whom is not now before the committee, eitber in manuscript or in print, (a portion of the manuscript being in tbe hands of the printer.) the committee have not at this time the means of ascertaining the etfect to be given to that testi- mony, or the nature thereof; and individual mombers of the committee are consequently unable (until a belter opportimity shall be alforded to examine said testimony) to determine how much farther the examination of those witnesses should proceed, or what other witnesses ought to be examined in this case in order to a lull understanding thereof: and whereas we are satisfied that a full investigation of the tacts connected with the defalcations charged can be better examined into here than else- where : therefore. Resolved, Tiiat this comnnttee will not fix upon a time for closing? the testimony in New York until the testimony is at an end ; and that the fixing the time for adjourning to Washington, by resolution passed before the testimony is ended, will be calculated to deprive the said collector of the right (winch every man when charged has) of showing that those charges are unfounded, and of protecting his character from asper- sion •, will preveiit the individuals of the committee from examining and cross-examining such witnesses as they may believe ought to be ex- amined ; will set a precedent entirely new and arbitrary m the adminis- tration of justice, dangerous to the rights and privileges of persons who may be charged with misconduct ; will be decidinf since sent to me by the committee: "Are you or not willing for the cashiers of the Bank of the State of New York and of the City Bank to furnish this conmiitlee with a state- ment of the weekly or monthly balances of your deposites in said banks, since your term of office as collector commenced? If nay, please state your rea.sons in full. '' And to which question I made the folio winganswer: "From an occurrence that took place in the committee-room last evening, 1 made up my mind that it was necessary to make a conuiumication in writing to the committee. I stated to the committet^ before I commenced this answer, what 1 desired,and that the letter would be before the commit- tee in a!)out two minute's.; and since commencing the writing of this answer, 10 138 Rep. No. 313. she said commuuication was brought to the committee, and handed by me to tlie chairman thereof; and until an answer is made to that communi- cation in some ibrm or manner, to indicate to me the sense of the com- mittee upon the same, I decUne answering the interrogatory." As I think it of vital importance to myself, (and not only to me, but to truth and justice.) that the communication referred to should be received and acted on by the committee; and as I am reduced by the course which has been taken by the committee to the a Iternative either of withdraw- ing what I conceived to be a proper answer, under the extraordinary cir- cumstances in which I was placed, to the question put to me, or of sub- mitting to the rejection of my communication without its being acted on, read, or even received: I feel myself compelled, by a paramount regard to the personal and public interest involved in this case, to submit to the di- rection of the committee, and 1 do therefore hereby withdraw the answer above stated to have been given to the question of Mr. Smith. But, before I proceed to answer that question, I think it proper to remind the commit- tee of the circumstances under which it was given, and to state the mo- tives M'hich prompted it, to the end that the object and propriety of the conrso adopted by me may be clearly seen. When I parted from the committee at half-past 1 1 o'clock last night, I informed the committee that 1 would njake a communication in writing, this morning, touching Mr. Lyon's testimony, and the posture in which it placed me before the commit- tee; which communication, as I understood, the committee agreed to re- ceive. In conformity with this understanding, I prepared the proposed communication at as early an hour as practicable, and, as above stated, de- livered it to you, i)ersonally, at about 11 o'clock this morning. Being exceedingly desu'ous that this communication should be received, and promptly acted on by the committee, for reasons which will readily appear by perusal thereof; and being unwilling to enter upon any new subject of inquiry until 1 should be distinctly informed by the committee, as requested in that communication, what were the charges preferred against me, and by what evidence they were supported; 1 felt it to be my right to withhold a reply to the new question proposed by Mr. Smith, es- pecially as the mode of trying a public officer by compelling him to fur- nish evidence against himself,to which I had patiently submitted for several days, seemed, at least, to deserve this modification. I was also induced to take the com-sc I did, by the fact that I apprehended, from an informal con- versation had with the committee just as I was about to leave the com- mittee-room liisl evening, in regard to the time I should require to dis- prove the statements of Mr. Lyon, that the conmiittee might possibly ad- journ before I could have the opportunity of introducing the necessary testimony; and tiiis was the occurrence alluded to in my answer to the in- terrogatory propounded by Mr. Smith. Proceeding now to answer that question, I reply, that I am perfectly willing that the cashiers of the Bank of the State of New York, and the City Bank, siiould render you any and all of my accounts inquired about in the interrogatory, in any form or znannt^r required by the committee. 1 have at all times been willing that such accounts should be rendered. 1 have not requested or advised either of the said cashiers to withhold them, nor have I any wish to con- ceal or supju'css the same; but I am desirous, as I formerly stated in my letter to the committee, under date of tiie 29th of January last, to liave a Rep. No. 313. 139 full investigation of my accounts, and that the committee miglit state to the House ol" Representatives, and through them to the people, whether or not I am a public defaulter. Very respectfully, your obedient servant, J. nOYT, Collector. Hon. James Harlan, C/i(/i'ri?if/n,S,'C. Mr. Owens olfered the following rcsoJutiou: Resolved, That Jesse Hoyt, the collector, be furnished with a copy of the printed journal of this committee, so far as the same has relation to charges, direct or indirect, against him as collector. Mr. Curtis moved to amend the resolution by striking out all after the word "resolved," and inserting the following words: That Jesse Hoyt having had an opportunity, on Wednesday morning last, to read the testimony of David S. Lyon, at the time it was received, so far as the same related to the official conduct of Mr. Hoyt, it is inex- pedient to make out and send copies of any testimony taken before the committee to him. Mr. Dawson moved to lay the resolution and amendment on the table till Tuesday next. Mr. Owens called for the yeas and nays, and the motion was carried: Yeas — Messrs. Curtis, Dawson, Harlan, Smith — 4. Nays — Messrs. Foster, Owens, Wagener — 3. , Mr. Foster ottered a resolution, which the cliairman decided to be out of order. Mr. Foster appealed from the decision of the Chair, and called for the yeas and nays. The question. Shall the decision of the Chair stand ? was then put, and decided in the affirmative : Yeas— Messrs. Curtis, Dawson, Harlan, Hopkins, Smith. Wise — 6. Nays — Messrs. Foster, Owens, Wagener — 3. Mr. Foster then offered a second resolution. The Chair decided the resolution to be out of order. Mr. Foster appealed from the decision of the Chair, and called for the yeas and nays. The question, Shall the decision of the Chair stand ? was put, and de- cided in the attirmative: Yeas— Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. Nays — Messrs. Foster, Owens, Wagener — 3. Mr. Hopkins offered the following resolution : Reso/ved, That the chairman return to Mr. .1. Hoyt his communication of this morning, which was received about 1 1 o'clock. Mr. Foster moved to amend the resolution, by striking out all after the word "resolved," and inserting the following words: That the chairman now present to the committee, and that the com- inittee receive, the communication made to the committee at about eleven o'clock, A. M., this day, and that the said communication be now read. Mr. Owens called for the yeas and nays, and the amendment was re-- jected : Yeas — Messrs. Foster, Owens, Wagener — 3. Nays— Messrs. Curtis, Dawson. Harlan, Hopkins, Smith, Wise — 6, 140 Rep. No. 313. The question was then put on the original resolution, and carried in the affirmative : Yeas — Messrs. Curtis, Harlan, Hopkins, Smith, Wise — 5. Nays — Messrs. Dawson, Foster, Owens, Wagener — 4. The committee, having thus furnished the House with a faithful and connected detail from the record of the })roccedings of the committee, in reliitioii to the collector at New York, need only add, that the repeated and continued evasions of the calls of the committee upon him, hy hoth resolutions and interrogatories, for information respecting his oflioial con- duct with the public money, and of his accounts of that money, and the constant falsification by him of thq professions made to the committee in his letter of the 29th of January, of Ids anxietij to give every facility to the investigation of his accounts, and unwillingness tu 7'esl for a mo- vient u)ider any imputation implied by a previous resolution of the committee, and of his readiness to submit to the committee all his offi- cial corrcsj)ondence with the Treasury , and his books and papers re- lating to the receipt and disbursement of the public money, and to the particulars and s'tute of his accounts since entering upon the collector- ship, and also that it would give hivi pleasure to communicate, either orally or in writing, any other information on the subject which the committee might desire ; the evasion and falsification of tliese plain pro- fessions and assurances whicli he had made, clearly but in accordance with the duty imposed upon him by his station ; and especially Mr, Hoyt's neg- lect to appear in person to enter a retraxit of his previous refusal to an- swer to the interrogatory propounded to him by Mr. Smith, and to submit himself to further examination, ibrbade tjie conmiittec to indulge any con- fidence in the hope of a successful prosecution of their inquiries rcsjiecting his otlicial proceedings within the short lime remaining for their investi- gatioii. The committee could not but feel that already too much time had been spent in endeavors to surmount the obstacles and equivocations which had been thrown in their way by the ccjjector, where openness, directness, and plain dealing only were to have been anticipated. To re- scind their previous resolution for their return to Washington, upon any assurance of the collector of a, difl'erent line of conduct towards the com- mittee from that which he had been pursuing, with the jirobability thereby of defeating the purposes of an early return of the connnittee to Wash- ington, appeared to the committee not to be warranted by a sound exercise of discretion. Equally incompatible with the time and duties assigned tjiem by the House appeared every jnoposition for the committee, under ally pretext of wounded sensibility on the })art of the collector, to be drawn aside to investigate or to adjudicate either actual or fictitious cliarges of malconduct that nnght be brought by the collector against any individual who had preceded him in the custom-house, but who was not any longer an officer of Government, or amenable to the committee or to the House. At the stage indicated the committee were therefore compelled to abandon all hoi)e of reporting in full upon the correctness of the returns that lutve been made by this officer. Revit;wing the evidence obtained. th<' f^ommittcc re)iort to the House the following facts as established : 1st. That the returns of the collector oi the custoiits at the pori of New York have not been correct, as they have not at all times embraced, as Rep. No. 313. 141 paid into llic ])iil)lic Treasury, tlic moneys received by him for unascer- tained duties, and at no time for duties paid under protest, 2d. Tiiat said collector, in his returns, has violated the instructions of the Treasury Department ; has put at defiance the duties assigr.ed him by the Secretary of the Treasury : has repudiated the otRcial decision of the responsible law-ollicer of the Executive department; and is guiltv of an illegal retention and use of the public money, in the amount tlius held by him luider protest and for unascertained duties. 3d. That the committee have been prevented from ascertaining what is the extent of the illegal retention and use of the public moneys by the present collector of the port of New York, either in funds collected under protest, or for unascertained duties, or in other lunds collected by hiin, because of his refusal to exhibit his own book of cash drposites in bank, or to permit the l)anks used by him as depositories to (ixhibit their ac- counts of his deposites. 4th. That the public moneys received by said collector are mingled with his own moneys on deposite, and are not kept by him, nor by his banks of deposite, distinct and separate from the individual moneys of the col- lector, and of his "• professional clients ;" and hivS returns cannot, there- fore, be founded upon them as a separate awd independent fund belonging to Government, though in his keeping. 5th. That, as appears by the letter of Gorham A. Worth, the cashier of the City Bank, the present collector has deposited public moneys in his hands, with a bank which could not, under the law prohibiting the selection of any bank as a depository which has issued notes under the denomination of five dollars, be selected by the Secretary of the Treasury himself as a depository of moneys carried to the credit of the Treasurer of the United States. 6th. That the mode adopted and practised by the said collector, of keeping and making returns of the public money collected^ by him for unascertained duties and under protest, in the language of the present Attorney General of the United States, "could never have been the in- tention of Congress ;" and being " tolerated,'''' it has made it, in the lan- guage of the same high officer, "the interest of the collector to postpone the ascertainment of duties, as, in the mean time, he would have the un- controlled use of the money ;" it has also, in fulfilment of the reason- ing of the Attorney General, incy^eased the "danger of faithlessness in the collector, by permitting large amounts of money to remaiti with him, and under his individual control, instead of being in the Treasury of the United States." 7th. That, in the language of the Attorney General, " the tenor and spirit of all our revemic laws seem to inculcate the idea that the inten- tion of Congress has at all times been, that money collected for revenue should be promptly placed in the Treasury, and not be permitted to re- main in the hands of the collector." 8th. That the returns of the naval ofllcer at New York have not been correct, as it is found, in the testimony of the present deputy naval otfi- cer, " that the naval office, under its existing system, is not enabled either to determine what amount of bonds has been taken by the collector for duties in any quarter, or' who are the parties to said bonds, or the dates of said bonds, or when they are payable, or when such bonds are paid, or whether the collector does or does not account truly for such bonds." 142 Rep. No. 313. PART IV. DEFALCATION AMONG RECEIVERS OF PUBLIC MONEYS. The committee, in fulfilment of that portion of the duty assigned them by which they were directed to inquire into "any del'alcations among receivers," &c. " wliich may now exist," report to the House that the limited period which they had for a thorough investigation of the subjects with wliich they were charged, and the time necessarily consumed in the examination of the cases of the late collector and district attorney of New York, liave prevented a minute investigation of the extent, nature, and causes of the defalcations of receivers of public moneys, arising from the sales of the public lands. The committee liave, however, prepared, from reports made by the Secretary of the Treasury, at the last and present ses- sions of Congress, a tabular statement exhibiting the names of such de- faulters, the amount due from each, when due, and the penalties of their official bonds, respectively ; also, the correspondence had between the Treasury Deijartment and fifteen of the individuids whose names appear in said statement. Tiie committee having called for and been furnished by the Department with the answers of the receivers to the letters of the Secretary of the Treasury, as contained in House document No. 297,, tliese fifteen cases are reported specially as examples merely of the manner in which the President of the United Stqites and tlie Secretary of the Treasury have executed the laws in respect to the public money, and other property of the United States, in the hands of this class of public officers, and in respect to their own official duty, Tlie law provides for the appointment by the Executive, with the con- currence of the Senate, of a receiver of public moneys at each of the places, respectively, where the public and private sales of the lands are to be made, who shall give bond, with approved security, for the faithful discharge of his trust; who shall transmit within thirty days in case of public sale, and quarterly in case of private sale, an account of all the public moneys by him received to the Secretary of the Treasury, and to the register of the land office, as the case may be. He is allowed a salary of five hundred dollars per annum, and a commission of one per centum on the moneys received; but his salary for anyone year shall not exceed $3,000. The Secretary of the Treasury may allow to the several rcciMVcrs of the public moneys at the several land oflices a rea- sonable compensation for transporting to, and depositing such moneys m any bank or any other place of deposite that may, from time to time, be desiij^nated by the Secretary of the Treasury for tliat piu'pose. He is also authorized to pyrscrilie such farther regnlations, in the manner of keep- ing books and accoimls by the several officers in the land offices, as to Aim may appear necessary and proper. It is made his duty, at least once in every year, to cause the books of the officers of the land oflices to bjfi examined, and the balance of public moneys in the hands of the sev- eral receivers to be ascertained. Tlie foregoing synopsis of the law relative to land receivers, and th& Rep. No. 313. 143 correspondence with a portion of those who imve proved defauUers and faithless to their trusts, are submitted without further connnent thnn that the facts and circumstances here exhibited show such a dereliction of duty, on the part of the Executive Department, as calls loudly for soarchina: ex- amination into this branch of the public service, and for a tliorou2:li re- form. The practice which the foregoing correspondence exhibits, of retainirHg men in office after gross and repeated violations of law, in keeping and using the public moneys for private speculation, and the character of the correspondence itself, but too clearly point to the inference that such offi- cers were retained in place because they possessed extensive political in- fluence, and were useful and active partisans. Whether such mal-administration constitutes otHcial corruption in those superior officers of the Executive Departments who knew of and permitted in their subordinates the conduct which has been referred to, is a questioa which the committee submit to the House and the country to decide. 1. — Siaiemeni exhibiting' the balances due by 7'eceivers of public moneys arising from the sales of public lands, who were out of office the \2tk October, 1837, as extracted from the report of the Secretary of the Treasury, (document 111,^ dated \5th January, 1838, and as cor- rected, as regards the true amount due, by the report of the same officer dated 2Gth January, 1839, (document 122, //, R.J o c Receivers. Land district. Amount due. When due. §.2 a, o o 1 Peter Wilson Steubenville - $9,348 87 23 Jan. 1821 ? 15, 000 2 Samuel Stokelj Do. 146 87 7 Feb. 1837 15,000 3 Samuel Finley Chillicothe - 24,779 34 13 Nov. 1818 io,ooe 4 Bernaicl Van Home - Zanesville 35 50 24 Aug. 1836 20,000 5 Nathaniel Ewing Vincennes - 5,967 32 9 Oct. 1819 io,ooa 6 J. C. S. Harrison Do. - 9,253 08 2 June, 1 829 40,000 7 Charles M. Taylor - Jeffersonville 1,627 97 14 June, 1824 3o,ooa 8 A. P. Hay - Do. 5,046 72 18 April, 1829 30,000 9 Israel T. Canby Crawford-sville 39,013 31 31 Dec. 1834 30,00G 10 Lazarus Noble Indianapolis - 4 93 4 April, 1836 10,009 ]1 Abner McCarty Do. 1,338 92 18 July, 1836 60,000 12 Benjrtuiin Stephenson Edwardsville 6,460 41 10 Oct. 1822 1.5,000 13 Samuel D. Lockwootl Do. 572 36 21 April, 1826 15,000 15 B. F. Edwards Do. - 3,315 76 20 May, 1837 15,000 16 Wm. LeeD. Ewing - V^andalia 16,754 29 9 April, 1830 20, OW 18 George F. Strother - St. Louis 27,051 64 24 Dec. 1 824 40,000 19 Samuel Hammond - Do. 21,574 44 13 Jan. 1820 20 Bernard Pralte Do. 168 86 28 Jan. 1836 30,00(.* 21 Tunstall Quarles Jackson 1,060 95 30 Juntt, 1824 10,000 22 John Hays - Do. 1,3S6 16 31 Dec. 1834 20,000 23 Wm. D. McRay Lexington 9,877 23 30 Nov. 1S25 24 Willis M. Green Palmyra 2,312 12 31 Dec. 1835 .30,000 25 Ben. S. Chambers Little Rock - 2,Hfi 27 4 Aug. 1836 10,000 26 Wm. Garrard Opelousas 27,230 57 18 April, 1821 10,000 27 Luke Tjecassier Do. 6,893 95 7 .Mav, 1823 10,000 28 David L. Todd Do. 1,121 98 11 Apnl, 1832 10,000 29 Benj. R. Rodgcrs Do. 6,624 83 25 Mav, 1837 20,ooa ]44 Rep. No. 313. STATEMENT— Coiitinuec!. « '^'i Receivers. Land district. Amount due. When due. n.2 30 Nathaniel ('ox New Orleans $4,163 56 31 Mar. 18ii9 $l5,00^) 31 Jas. J. McLanahan - Do. 593 99 10 Sept. 1830 10,000 32 Maurice Cannon Do. 1,259 28 30 June, 1836 20,000 33 Alex. G. Penn St. Helena - 165 84 7 July, 18.35 1.5,000 34 A. W. McJ^anicl - Washington, Miss. - 6,000 00 6 Oct. 1830 20,000 35 James Duncan Do. 55-72 30 June, 1830 20,000 36 Thomas Lewis Do. 347 26 31 Dec. 1834 20,000 37 Wni. Barnett Augusta 107 85 9 Sept. 1820 10,000 38 George B. Dameron - Do. 285 37 31 Dec. 1834 15,000 39 Hanson ■'Vlsbury , - Do. 131 30 31 Dec. 834 1.^000 40 Samuel Smith St. Stephen's 33,590 92 25 May, 1817 10,000 41 George Conway Do. 5,G13 00 16 Sept. 1827 40,000 42 John H. Owen Do. 30,611 97 1 Nov. 1836 40,000 43 James C. Dickson Choctaw 548 61 30 Sept. 1836 30,000 44 Geo. B. Crutcher Do. 6,061 40 31 Mar. 18.32 30,000 45 Geo. B. Dameron Do. .38,714 81 1 April, 1834 30,000 Do. - Choctaw school fund - 344 83 1 April, 1834 46 Samuel W. Dickson - Choctaw 11,231 90 16 Sept. 1837 G0,000 47 Do. - Choctaw school fund - 898 53 16 Sept. 1837 48 Wiley P. Harris Columbus 109,178 08 16 Nov. 1836 30,000 49 John Brahan Huntsville - 18,712 49 22 .May, 1820 50 Leroy Pope, trustee of John Brahan - Huntsville - 38,133 22 20 July, 831 51 John Taylor Cahaba 11,115 20 12 July, 1821 40,000 52 William Taylor Do. 23, 1 1 6 18 30 June, 1836 40,000 53 H. (r. Perry Do. 6,074 81 16 Feb. 827 40,000 54 Uriah G. Mitchell Do. 54,626 55 28 Feb. 1837 40,000 55 John Herbert SparTa 2,444 24 30 Sept. 827 40,000 56 A. T. Perry Do. 28,155 57 28 May, 1 828 20,000 57 R. K. Call - Tallahassee - 9,385 30 31 Dec. 1836 40,000 60 James W. Stephenson Galena, Illinois 43,294 04 5 May, 837 30,000 61 Littleberry Hawkins Helena 100,000 00 9 Nov. 835 20,000 62 S. W. Beall Green Bay - 10,620 19 30 June, 1 837 20,000 63 Jos. Friend - Washita, Louisiana - 2,.'>51 91 15 May, 1 835 15,000 64 Wm. H. Allen St. Augustine 1,997 50 27 Oct. ] 836 20,000 65 Gordon D. Boyd Columbus 50,937 29 31 Aug. 837 200,000 66 R H. .Sterling Chocchuma - 10,733 70 28 Feb. 1 837 30,000 Rep. No. 313. 145 •§ c? "? ^ "■< O 5^ ~ O ** i;^ ^^ -^ ^^'^ *«» >«>„ ^ >*» *^ •- S **• i^ ?* 'J ^ *^ ►'^ ?2 Q Gr CO Si, -' £^ ^ ''^ ^ ~ ;j 'U ?^ SsnJ- 5 5 ■>= o* ^ r^ 2^ ^ OS a -^ "<2 I I ^. O ■^ ^ ^ 2 "" a ?= e ■w « 5 t» f/^ ^ ■" hn *^ an -^ ho -* bO =^ 5 S ■= c "ij 3 5f o 3 « c * c m « ho-- O O' W OJ w •a 1 .IB ■ -3 • .c • . bt •- fcc ■^ to — ill E s = S-S c.E ^ — '-3 "2 ■" "2 c s s c s c c Q 0) u aj 0^ ^ ^ a, 3. ci, > a. > c- ,ti to.-s bc ■ji fco.ti bo.t; '^.'H "3 Ts "3 13 '3 t3 5 ' pq PQ B m n CQ « t©. ^ -HO'-' "t M ■** - 3 .12 r5 '-' as i a '&■ ■'■ « !0 ^ •3 < .2 '0 's ^ a J g 4> C4 00 4 < CO 1 1 1 1 > u Ul d c c u « 2 h3 Ch JS K ■a c il< •-> i^ do IS to ♦J S -7^ O ,= .5 = -^ =^ ;^, = < ^ « 3) 00 00 ^ s* 00 1* ■3 O — "^ SO 3 O *" V. o IP * s ® a> I* ci "o "»" S ^ O 03 146 Rep. No. 313. Paris Childress, late receiver at Greensburg, Louisiana. — Suit ordered March 29, 1838, for §12,449 76. The circuit court at New Orleans for May term, 1838, adjourned sine rfie, and without transacting business; the suit, therefore, is still pending. John H. Owen, late receiver at St. Stephen's, Alabama. — Suit ordered January 15, 1838, for S30,611 99 ; suit is still pending, the district attorney having called for separate statements showing the amount of the default due under each of the four dilferent bonds given by Mr. Owen, which have not yet been received from the Comptroller. William Linn, late receiver at Vandalia, Illinois. — Suit ordered March 1.9, 1838, for 680,551 76; balance reduced in June, 1838, to ^55,962 06. Suit continued at December term, 1838, on an order of court requiring production of the original bond in this case; and, also, for a statement of Mr. Linn's account in detail. Samuel T. Scott, late receiver at Jackson, Mississippi. — Suit ordered March 22, 1838, for ^11,295 51: judgment at May term, 1838, against principal and sureties for Si 1,595 84. In the district attorney's report, he states that Mr. Scott made no defence, although he had some small assets. The marshal, by letter dated November 30, 1838, advised that Mr. Scott made a payment to him of upwards of ^1,700, of which he made a deposite of ^1,344 43 to the credit of the Treasurer of the Uni- ted States, and retained the balance to pay costs. He further advised that, as the banks of Mississippi would resume .specie payments in a short time, he presumed Mr. Scott would pay the whole amount by the next term of the United States court. James T. Pollock, late receiver at Grawfordsville, Indiana. — Distress warrant issued in this case April 28, 1838, for i?40,498 87. Sundry pay- ments have been made by Mr. Pollock, which have reduced the United States claim against him to the sum of Sl4,891 98, per Treasury report No. 3913. An authenticated transcript of the last settlement transmitted to the marshal of Indiana November 27, 1838, that he might proceed for the balance still due; but his report since then has not been received. John L. Daniel, late receiver at Opelousas, Louisiana. — Suit ordered August 3, 1838, for g7,280 63. District attorney's report of proceedings thereon not yet received. Morgan Neville, late receiver at Cincinnati, Ohio. — Suit ordered De- cember 21, 1838, for iS 13,781 19, but no report thereon yet received from the district attorney. M. J. Allen, late receiver at Tallahassee, Florida. — Suit ordered Janu- ary 5, 1839, for ^26,691 57; balance reduced January 16, 1839, to ^25,068 72, but no report thereon yet received from the district attorney. Offick of the Solicitor of the Treasury, January 26, 1839. Ren. No. 313. 147 COKKESPONDENCE BETWEEN THE SECRETARY OF THE TREASURY ANI> CERTAIN RECEIVERS OF PUBLIC MONEY. 2. — Coi'res])onde7ice with H. H. Sterling, r^eiver at Chocchuma. Receiver's Office, Chocchuma, fMi,ss.J November 2Q, 1833. Sir : I liave the honor to acknowledge the receipt ol' your letter dated on the 8tli ultimo, authorizing me to receive, in payment for public lands^ the bills of the specie-paying banks of Louisiana, Mississippi, Tennessee, and Alabama. The public sales were well attended, and the press of private entries af- ter the sales closed was immense. At ibis time I cannot say to you the amount of the sales, but I think they are not much short of $300,000. The labors of the oflice, from the moment the sales conmienced, have been very severe — so much so, that the register and myself have scarcely slept for many nights in succession; and, under these considerations, I trust that you will allow us clerk-hire for at least a clerk apiece during the sales, and after that period for one clerk, which would enable us to get along. I will leave here in a short time for the purpose of making a deposite 9X Natchez, and return here before the 1st of January, so as to make out my quarterly account up to that time. I am, verv respectfully, your obedient servant, R. H. STERLING, /?ecm'er. Hon. R. B. Taney, Secretary of the Treasury, Washington. •Treasury Department, January 16, 183,4. Sir : I have received your letter of the 26th November last, and have looked with some anxiety for further advice as to the disposition of the money in your possession, arising from the recent public sales in your district. Returns from the bank of deposite to the 24th ultimo contain no jevidence of any credit to the Treasurer by you ; and as, from your letter, there was reason to expect the public money would not be retained be- yond that period, I am tlie more concerned at the omission. Under these circumstances, it becomes my duty to require that you will proceed to de- posite the whole amount of pubhc money in your hands forthwith, in case it has not been already deposited, I will only further add, that the obli- gations to deposite the public money promptly, and to render your returns and accounts punctually, are imperative, and must, in future, be regarded as paramount to all other duties. I am, &.C. R. B. TANEY, Secretary of the Treasury. R. H. Sterling, Chocchuma, Receiver of Public Money. 148 Rep. No. 313. Treasury Department, /VA/'Mrtri/ 7, 1834. Sir : It has been represented to this Department that some of the re- ceivers of pubUc money in Mississippi have been engaged in trading on the bank notes they receive in payment of pubHc lands, by exchanging them for bank notes of inferior vakie. I hope that there may be some mistake in this business, as it is my duty to state to yon that such conduct would be regarded by this Department as a gross violation of. official duty, and be treated accordingly. But, as such a statement has been made from the most respectable authority, I must ask whether you have engaged in any such use of the public money received by you, and request a prompt answer to this inquiry. I am, &c. R. B. TANEY, Secretary of the Treasury. To the Receivers op Public. Money at Jlugusta,, Mount Sains, IVaslungton, Chocchiima, and Columbus. Receiver's Office, N. W. District, Chocchuma, (Miss.) Jipril 16, 1834. Sir : I have not, until this day, received your letter of the 7th Februa- ry ultimo, in reference to receivers of the several land offices in this State trading in bank notes ; and I embrace the earliest opportunity of communicating to you an answer to your inquiry, as far as concerns my- self. I occasionally, to accommodate persons who call upon me for that pur- pose, have given them in exchange bank paper for notes of other banks, but I have not, except in one solitary instance, given, or received in ex- change, bank paper of any description, but such as I have received in- structions from the Treasury Department to receive for public lands. I proceed now to state the circumstances attending the case referred to above. During the land sales, the honorable John Bell, at this time a Representative in Congress from Tennessee, in(iuired of me if I felt author- ized to receive, in payment of lands, the paper of Yeatman, Woods,& Co., and that of the Union Bank of Tennessee. I informed him I did not feel so authorized; but as I felt perfectly satisfied of the soundness of the banking-house of Yeatman, Woods, & Co., and the Union Bank also, as well as a disposition to oblige him, I would take time to reflect upon the subject, and advise with my friends touching the matter. The result of my consultations with the nnitual friends of Air. Bell and myself', induced me to receive the paper ollerod by that gentleman at a small discount, with an assurance from him that he held himself responsible to me for any loss that might accrue on the paper received from him, should the bank of deposite refuse to receive the saine on account of the Govern- ment. Subsequently, I offered that paper to the Planters' liank, which was readily placed to the credit of ihe Treasurer of the United States at par. I beg leave further to state, that, up to this date, wll the money I have offered to the Planters' Bank for deposite has been received and placed to Rep. No. 313. 149 the credit of the Treasurer of the United States. I should be pleased if a cornmuiiicatiou be addressed to the cashier of the Planters' Bank by the Secretary of the Treasury upon the subject, as I feel confident an im- mediate and satisfactory answer would bo given to any inquiries made of him. 1 have the pleasure to state to you, that, out of about ^350,000 depos- ited, 1 liave not received one dollar of counterfeit niont^y — a heavy re- sponsibility, that 1 very much apprehended might ruin me, as there was considerable spurious money olFered during the public sales, particularly on the United States 15ank and its branches; and that, too, at a time when I was very much hurried in the discharge of my official duties. In my instructions from the Treasury Department, I find nothing dis- approving my conduct as above stated ; however, should it not meet the views of the Secretary of the Treasury, 1 hope to receive timely notice of it. Respectfully, I am, sir, your most obedient servant, R. II. HTER] A^G, Receiver. Hon. R. Ji. Taney, Secretary of tke Treasury, IVushingtun city. P. S. — For your satisfaction, I beg leave to refer you to the honorable Messrs. John 'Bell and David W. Dickinson, members of tlic House of Representatives, who will, doubtless, corroborate the foregoing statement should you judge it necessary to call on ihem. Treasury Departmknt, March 25, 1834. SiE : The Department having received no monthly returns, exhibiting the transactions of your office from ics establishment, it is proper to call your immediate attention to this duty,. and to say to you that a strict compliance with this duty will be insisted on ; and that, to enforce its due performance, the Department will not hesitate to report the omission, for the action of the Executive. 1 am, &LC. R. B. TANEY, R. H. Sterling, Esq., Secretary of the Trcusvry. Receiver of Public Money, Ctiocchuma. .Receiver's Office, N. W. District, Chocchuma, May 10, 1834. Sir: I herewith enclose you my monthly account, showing a balance of ten thousund and fourteen dollars and filty cents, (Sl0,014 50.) Some time since, 1 transniiited to you this account, which showed the balance to be ^10,014 39, which is short by eleven cents of the actual balance. The account here enclosed you will please receive, and return the other one to me. 1 am, very respectfully, your obedient servant, R. H. STERLING, Receiver. Hon. R. B. Taney, Secretary of the Treasury, fVashivgton city. 150 Rep. No. 313. Treasury Department, MuT/ 19, 1S34. Sir : Lest the letter of which the enclosed is a dupHcate may have miscarried, I have thought it proper to transmit a copy, and again to call your attention to its requirements. I am, &c. R. B. TANEY, Secrehi/y of the Treasury. Receivers of Public Money, Augusta, Mount Salus, Cohimbus, Chocchuma. Receiver's Office, N. W. District, Chocchuma, {Miss.,) June 18, 1834. Sir : I have this day received yours of the 19th ultimo, covering a copy of your letter to me of 25th March ; in answer to which, I have the honor to inform you that some time previous to the receipt of the latter, (received April 30th,) 1 had transmitted all my monthly accounts up to that time to the Treasury Department, and also duplicates of the same to the General Land Office ; and in the event of their having been lost, I now enclose copies of them to you. I am, very respectfully, your obedient servant, R. H. STERLING, Receiver. Hon. R. B. Taney, Secretary of the Treasury, Washington city. P. S. — Tiie vouchers and account? explanatory of the charges in the accounts, have been forwarded to the General Land Office with my quar- terly accounts. Treasury Department, January 21, 1835. Sir : Your letter of the 10th of February last, transmitting an account for certain advances and services, was duly received, and referred to the Commissioner of the General Land Office ; a like disposition has been made of the copies of that letter and accounts received through the hands of the honorable F. E. Plummer. 1 would observe, in reference to the subject, that all such claims should be charged in the quarterly accounts rendered by you to the accounting officer for settlement, to whom it properly belongs to admit or reject them, as the law or usage of the De- partment may authorize. I am, &c. R. H. Sterling, Esq., Receiver of Public Money, Chocchuma, Miss LEVI WOODBURY, Secretary of the Treasury. Rep. No. 313. " 151 CIRCULAR. Treasury Department, February 28, 1835. Sir : It luis been intimated to the Department that a practice prevails at some of the land oflices, of" permitting entries and issuing certificates of purchase, without the payment of the purchase-money at the tinje of the entry. Such a practice being unauthorized, and highly reprehensible, I have deemed it proper to make known to you, that if it has been tol- erated by you, it must immediately cease ; and any repetition of it here- after, coming to the knowledge of the Department, will receive prompt and exemplary notice. I cannot omit the occasion to impress upon you the necessity of a strict attention to, and punctual compliance with, the duties required of you in regard to the prompt deposite of the public moneys, and transmission of your accounts and returns ; and to say to you that the performance of those duties must be regarded as paramount to all other in your official station. I am, &c. LEVI WOODBURY, Secretary of the Treastiry. To Receivers of Public Money at Cahaha, HuntsviUe, Montgomery, St. Stephen'' s, Augusta, Chocchuma, Neiv Orleans, Ouachita, Deniopo- lis, Mardisville, Sparta, Tuscaloosa, Columbus, Washington, Opelou- sas, and St. Helena. Treasury Department, March 17, 1835. Sir: Having received no monthly duplicate return of the transactions of your office since that for the month of October last, it becomes my un- pleasant duty to call your immediate attention to the omission. Allow me to express a hope that there may be no further occasion to remind you of the importance of punctuality in the transmission of these returns. I am, &c. LEVI WOODBURY, Secretary of the Th^easury. To Receivers of Public Money : W^. P. Harris, Columbus, Mississippi. R. H. Sterling, Chocchuma, do. B, R. RoDGERs, Opelousas, Louisiana. , IJemopolis, Alabama. [November for October to the two last named.] P. S. — To the receiver at Opelousas : Having received no evidence of your compliance with the requirements of my letter of the 1st November last, I take occasion to apprize you that, unless you exhibit satisfactory evidence of your having deposited the whole of the public money in your hands at the time of such deposite, on or before the 1st of April next, I shall be under the disagreeable necessity, in the discharge of my duty, to report your neglect for the action of the Executive. 152 Rep. No. 313. Rkceiver's Office, N. W. District, Chocchuma, {Mus.,) Jlpril 22, 1835. Sill : On this day 1 relumed from Natchez, where I had been for the purpose of making a deposite, and found in my office your letter of the 17th ultimo, notifying me that none of my monthly accounts had been received since that of November last. It is true that some time had elapsed after tlie accounts for December and January were due, before they were despatched, because I left here in the latter part of December for Natchez, to make a'deposite ; I did not get back until late in January, and then it took me some time to prepare them for transmission, and I hope they have all safely arrived ere this ; but, if they have not, I am prepared to prove that they were sent in due form, and can furnish copies of them at a moment's warning. There is no receiver in this State that has the difficulties which I have to encounter, in performing the duty of making deposites. At Columbus, there is a branch of the Planters' Bank, in which the receiver makes his deposites; 1 have to travel a distance of two hundred and thirty miles, partly through a newly -settled country, where the accommodations are wretched, and worse roads than you have any idea of: there are but few creeks bridged, and frequently swimming, particularly at this season of the year. Since my appointment to this otfice, I have done but little else than to use my best exertions to discharge the duties required of me, and will continue to do so. I am, very respectfully, your obedient servant, R. H. STERLING, Receiver. Hon. Lkvi WooDBrRY, Secre/a?y of the Treasury, Washington city, P. S. — There have frequently, during the past winter and sprhig, several weeks at a time passed oil without the arrival or departure of a mail from this place ; and, under such circumstances, it could not be expected that my accounts, admitting that they were mailed the moment they were due, could arrive in season. At this time, the tributaries of the Yazoo are very high ; consequently we have had no mail from the North for near two weeks. My return and account current for the month of March are now waiting for the departure of the first Northern mail. It is with this country as with all new-sottled regions — the people must first build their houses and clc^ir their lands, and then open the roads ; I think that twelve months to come will put the roads in a situation so as to ensure the regular transportation of the mail. Very respectfully, R. H. S. Note. — Duplicates of my monthly accounts were transmitted to the General Land Office at the sarne time that the originals were despatclied to the Treasury Department ; and I have received no advice of their not havin? reached there. Treasury Department, February 4, 1S36. Sir : Your returns for the months of October^ November, and Decem- ber, have not been received. I I'cirrct that tliere should be any occasion Rep. No. 31.3. 153 to notice the neglect or accident, as the case may be, in this important duty ; and avail myself of the occasion to inform you, that unless your future returns are received at the Depariment within the month next suc- ceeding that for which the return is rendered, it will place me under the disagreeable necessity of re{)orting the fact to the Executive, in order to comply with the general rule in tfiis class of cases. I am, &c. LEVI WOODBURY, Secretary of the Treasuri/. To Receiveus at Palmyra, Missouri, October, November, and Decem- ber ; Edwards I'ille, Illinois, November and December ; Quincy, Illi- nois, November and December; Shawneetoion, Illinois, October, November, and December ; Cahaba, Alabama, November and Decem- ber; St. Stephen's, Jilabuma, November and December ; CohtmbuSj Mississippi, November and December ; 'Mount Salus, Mississippi, xVovember and December; Helena, Arkansas, December ; Washing- ton^ Arkansas, December ; Zanesvitle, Ohio, December ; Vincennes, Indiana, December ; Chicago, Illinois, December ; Galena, Illinois^ December: Vandalia, Illinois, December; Tuscaloosa, Alabama, December; Augusta, Mississippi, December ; Chocchuma, Missis- sippi, December; New Orleans, On ichita,and St. Helena, Louisiana, December; Green Bay, Michigan, December; Batesville, Arkansas, December. Receiver's Office, N. W. District, Chocchuma, (Miss.,) March 7, 1836. Sir : I have the honor to acknowledge die receipt of your letter un'der date of the 4th ultimo, on the subject of my "returns" for the month of December last. In answer to which, I assure you that my returns for that month ; my monthly account for the same ; my account current for the fourth quarter of 1835 ; my returns and monthly account for January last, were all sent off'; but, I admit, not so sjon as I wished, owing to my ab- sence in making deposites, which occupied about fifteen days of my time, viz : from the 23d of December to the 7di of January. I think it very probable that my returns are frequently delayed on the route between here and Washington ; and, if so, it would be injustice to hold me accountable ; and in future I intend to take the postmaster's certificate of the time that ray returns, &c. are deposited in the post office. I am, very respectfully, your obedient servant, R. H. STERLING, Receiver. Hon. Levi W^oodbury, Secretary of the Treasury, JVashington city. Treasury Department, Jtily 6, 1836. Sir : I have to request your explanation of the complaint made in the enclosed copy of a letter addressed to the Department by John Caperton, iu which he alleges that you refused to receive, in payment of public lands, 11 154 Rep. No. 313. a Sso note on the Bank of Virginia, unless he first paid you ^2 discount on the same. I am. &c. LEVI WOODBURY, Secretary of the Treasury. Keceiver of Public Money, Chocchuma, Mississippi. Receivek's Office, N. W. District, Chocchiima, f Miss., J July 30, 1836. Sir : Your letter of the 6th instant, on the suhject of John Caperton's eomplaint, hasheen received. He applied on the 13th of June last to enter an eighty-acre tract of land, and ofl'ered, in part payment for it, a twenty- dollar note on the Bank ol" Virginia, which is not receivable, as will ap- pear by a copy of a letter lierewith enclosed from the cashier of the depos- ite bank for this State. I informed ^Ir. Caperton that such money was not receivable for the public land, and not current in the country. He insisted on my taking it. 1 told him that I could not do so at par, inasmuch as I could not offer it at the depositc bank in the face of instruchons ; but advised him to go out amongst the merchants and other persons in the place, and get it changed 031 the best terms he could. He did so, but could not succeed, and re- turned to my office, saying that it would subject lum to much inconveni- ence if I did not take it. I then told him that I would not take a small note on my own account on a distant bank, for less than 10 per cent, dis- count ; he readily agreed to allow it, and expressed his thanks for the fa- yor, which I thought was the last of the subject ; and I consider it very mean and niggardly in him, afler the favor which I extended, to present me at the Treasury Department as a petty shaver. I am, very respectfully, your obedient servant, R. H. STERLING, Receiver. Hon., Levi Woophurv, Secretary of the Treasury. [R. H. Sterling stands indebted to the Government the sum often thou- aand seven hundred and thirty-three dollarsand seventy cents,(J^10,733 70.) See preceding statement of balances.] 3.. — Correspondence with J. T. Pollock, receiver at Craufordsville. Land Office, Craufordsinlk, {Indiana,) December 21, 1833. vSir: The circular of your predecessor (Mr. McLane) of the 12(h April fast, has been received some time since. I have to state that, agreeably to the instructions contained in it, there is but a small share of duty rest- ing upon me, not having been an officer of the Government until a short Hep. No. 313. 155 time before the conflagration occurred ; but all the letters and communi- cations of my predecessors, addn.'ssed to the Secretary of the Treasury, as well as those written by him, being in my possession, I have deemed it necessary, iu order that his request may be fulfilled, to copy them, as well as those written by myself and those addressed to nie by the Secretary of the Treasury. I have procured an additional clerk lor that purpose. The work is iu operation, and will be completed in a short time. To comply with tlic last clause of his instructions, I have herewith en- closed the date and object of some circula7\s written by the Secretary of the Treasury, that the wishes of the Department on these subjects maybe ascertained. Very respectfullv, sir, your obedient servant, JAMES T. POLLOCK, Receiver. Hon. R. B. Tankv, Seci^ctary of (he Treasury. TuEASuijv Depaiitment, March 14, 1837. Sir: Complaint has been made to the Department that your family do not reside at the place where your otfice is located. It will be necessary that you should reside at the place where the land office is kept, in order to give due attention to its business, and ensure public satisfaction. I am, &c., LEVI WOODBURY, Secretary of t lie Treasury. James T. Pollock, Esq., Receiver of Public Money, Craufordsviik, Indiana. Land Office, Crawforsdville, ,]pril 13, 1S37. Sir : In answer to your commmiication of the 14th of March, I have to say, that for more tJian two years while my family resided at this place, the physician was our daily and nightly visiter ; that iny oldest daughter, fifteen years of age, died ; that our infant died for us likewise; that our only surviving daughter had four several and severe ottacksof fever ; that my wife was, during the above-named period, so sorely diseased and atllict- ed that I was advised by medical men here to take her where lier health could be restored; that all our other children, being three in number, were torn to pieces by fevers and agues; that I never intended otherwise tlian to return my family to this place as soon as my wife's health and the state of the roads will allow me to do so ; that I reside here myself, as I am not absent only when I have leave, or making my depositc ; and that I am now, and always have been, disposed to give particular attention to business in- trusted to me. The complainant, of whom you speak, knows these facts, or he knows nothing at all of my business. In conclusion, sir, I am con- scious I have done nothing but what would have been done by any man who has any regard to the liresand comforts of those Heaven hath placed under his particular guardianship. Yours with respect, JAMES T. POLLOCK, Receiver. Hon. Levi Woodbury, Secretary of the Trem.niry. 156 Rep. No. 313. Treasury Department, November 11, 1837. Sir: Your monthly return lor tlie montli of August last has not been received ; and you are requested to transmit a duplicate thereof without delay- I am, &c. LEVI WOODBURY, Secretary of the Treasury. [The above circular was addressed to the Receivers at Quincy, Illinois; Fayette, Jackson, and Lexington, Mississippi; Green Bay and Monroe^ W\c\\\gdi\\, July and ^^ligust ; Mineral Point, Michigan; Crawfordsville, \\\di\Q.nx\., Septeynher ; Galena, Illinois, September ; Fayctteville, Arkan- sas, September ; Tallahassee, Florida, September.^ Treasury Department, January 9, 1838. Sir: The complaint of your non-residence at the site of the land office having been renevv^ed, it becomes my duty again to call your attention to this matter, and to ask such explanations as you maj^ be able to give for your supposed continued violation of the regulation requiring you to re- side at Crawfordsville. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, Crawfordsville, Indiana. Treasury Department, February 22, 1838. Sir: It appearing from your last return that the public money has ac- cumulated in your hands to the sum of ^54,089, although you have been directed to deposite the same on the 6lli of November last, and on the 26th iiltimo ; and as no explanation of your neglect has been received, I have to require the sales to be suspended until the money in your hands shall be deposited as directed. According to your last return, the balance in your hands was ^54,089. Deducting from this sum ^ 15,084 for outstand- ing warrants drawn upon you by the Treasurer, and there would remain the sum of ^39,005 subject to deposite. Referring also to the cliarge of non-residenco at the land office, communicated in my letter of the 9th January last, to which no answer has been received, I will only add, that^ if no satisfactory answer to the subjects of this letter be soon received, I must lay all the fact* before the President for his final decision. I am, &c. LEVI WOODBURY, Secretary of t fie Treasury. Receiver op Public Money, Craufordsville, Indiana. Rej). No. 313. 157 -•■^ P. S. I trust that the deposite of the balance will be made at Louis- ville, (if not done already under my previous directions,) without a day's delay. Tkkasury Department, \ipril 14, 1838. Sir: Having received no evidence of your having deposited the public moneys which have come to your hands, and the balance appearing to be due exceeding ^30,000, I have thought it proper, before resorting to any measure of harshness, again to call your immediate attention to the sub- ject, and to express a hope that you will be enabled to furnish satisfactory evidence, by return of mail, that you have deposited all the moneys with which you are chargeable, as heretofore directed. I am, very respectfully, your obedient servant, • LEVI WOODBURY, Secretary of the Treasury. James T. Pollock, Esq. Crawfordsvillc , Indiana. Dearborn County, May 3, 1838. Sir: A gentleman residing in Crawfordsvillc, and in whose care are the moneys (or at least part of them, the other part being left in the bank at Indianapolis) for the drafts on me, (Ogden's,) has this day informed me of your communication in relation to my business, dated the 14th of the past month. In answering this, I must tell of matters which I did not in- tend to name, and of matters which a part of my earnings must go to ac- count for. x\nd what arc they ? The register, Mr. Tyler, has, time out of mind, been practising on the people a course of business, to suit his own convenience, at my expense; and this has been the way it was done. When, as I suppose, it was coyivenient for the register to want money, and an applicant presented himself in his otRce, ten to one but there was some difiiculty between the person wanting Jand, and the plats and num- bers, &c., which would be an inducement for him to leave his money, with the assurance that his duplicate would be forwarded to him by mail in a short time, and, in the mean time, no other person should have his land. In this way the Lord only knows how much money has been deposited with Mr. Tyler; and it was none of my business if the entire wealth of the world had been left with him, so as I should not have felt any thing of his ingenuity. Pnit so it was ; the time would come when the fellow who had deposited the money would get uneasy about his duplicate, and bear down on the old fellow for the same ; the next thing then was to come to me, to have die amount charged to Tyler; and I have, for the sake of peace, granted him accommodation (relying greatly on his word that he would pay the same when wanted) to a considcraljle amount, and fully intended to keep the matter within myself; and siiould have done so, had not yours of the 14th been received. These are sent in to be proven by how many evidences, shall I say ? It is not necessiry to enumerate them; they can be made very many j as I have ail the numbers recorded in a 158 Ecp, No. 313. memorandum-book. And again, in my absence, a month or two ago^ from Crawlbrdsvillc, tbere was one thousand dollars let go out of the office^ for accommodation sake, by a man in n)y charge, that should not have gone had I been there ; this, with Mr. Tyler's money, I then had to gather from my own resources, which I did gather several weeks ago, and took to Louisville, with other moneys, expecting to get silver for it, and have the whole affair settled; and, behold, when I got there, there was not a dollar in market, for high or low prtmium; but I had assurances that it would be kept for me on my return, which will be to-morrow. In the mean while I deposited motleys in the Savings Institution, intending to take but one receipt on the final amount being placed there. If you doubt my having moneys in that institution, will you please to write the treas- urer as to the facts ? As to the Ogden money, I have requested the bank at Terre Haute to go to Crawfordsville and Indianapolis and get it, until I am tired out, and sliall give them another pressing notice tliis day to go and get tireir money. I cannot fo;ce them to go and get their money ; and I have written to them and urged them to it until I am tired out. In short, sir, if they do not go and get their money, I shall take it to the Sa- vings Institution at Louisville, as I am determined to have no more noise about it. These are the reasons why the amount I liave received has not been accounted for before this. And, in conclusion, the remark you made ''before resorting to any measure of harshness," has given me an assu- rance that you have studied the maxim that a gentle hand will lead an elephant with a hair. These very few thousand dollars that I have above alluded to I am bound for, although friend Tyler's account to me, unless he pays it, will be laid before you as Secretary of tlie Treasury of the United States; and if you will only reflect a moment that the men whose names are on my oflicial bonds are worth in cash not less than one hundred and fifty thousand dollars, you will say, at once, it never will be necessary to resort to any harsh measures whatever. One word more about the Ogden drafts. I was certain, when I left Crawfordsville, that the bank at Terre Haute, which held those drafts, would call and have them settled; and it was only a week ago that I was told that they (the bank) had not been heard from ; and I must again repeat, that all the moneys I owe the Gov- ernment will be j)aid instantly by me, without any difficulty whatever. My residence is in Dearborn county; the most convenient post office to me is Murray's mills, where you will please direct your communications to me, if you should have any; while I shall remain vour obedient servant, JAMES T. POLLOCK. Hon. Levi Woodiu^ry, Secretary of the Treasury. [ UnoJJicial.'] Receiver's Office, Crawfordsville ^ (Indiana,) May 4, 1S38. Sir: Your favor of the 14l[i ultimo came to hand the 21st ultimo. Col- onel Pollock left here the 3d day of March to deposite public moneys at Louisville, and has not yet rcturiicd. Since his departure, I have taken in Rep. No. 313. 159 draft No. 2746 on War warrant, in favor of Captain Ogdcn, for ;S.5,000:; and draft No. 1932, on Treasury warrant, in favor of J. F. Farley, for 531. I would forward tham to the Department, but I do not feel myself prop- erly authorized to do so. There is on iiand, in silver, about ^7,500, which I hold ro:idy for any draft drawn by the Treasury Department, or the refunding to individuals, agreeably to directions from the Conuuissioner of the General Land Office. Colonel Pollock I expect back shortly. Marks Crume, Esq., has not yel arrived. The iS 10,000 dral't has not yet been presented for payment. I am, respectfully, sir, your obedient servant, TAYLOR W. WEBSTER. Hon. Levi Woodbury, Secretary of the Treasury , Washington city. Treasury Department, May 10, 1838. Sir: I regret to inform you, in reply to your letter of the 3d instant, thai after the liberal delay which has occurred, it will be necessary to make ade- posite forthwith of the balance due by you at the Savings Listitution at Louisville, in order to prevent the district attorney from instituting legal proceedings on your bond. I am, very respectfully, your obedient servant, LEVI WOODBURY, James T. Pollock, Esq., Secretary of the Treasury. Dearborn county, Indiana. [Balance due from J. T. Pollock, late receiver, fourteen thousand e\g\& hundred and ninety-one dollars and ninety-eight cents, (Sl4,S91 98.)] 4. — Correspondence luith William Linn, receiver at Galena. Treasury Department, June 23, 1834, Sir: I regret to be under the necessity of calling your attention to thai provision of the regulations for the deposite of the public money which requires that each deposite should endirace the whole amoimt in the pos- session of receivers. According to your returns, there was in your hands on the 31sl of March last, the sum of >&10,643 49; on the 30th of April, the sum of vSl2,453 32; on the 31st of May, the sum of JS13,505 10; yet it appears that its transfer to the bank of deposite was deferred until the 31st of May, and that the sum then deposited amounted to no more than §8,000. Under these circumstances, it becomes my dnty to direct that the whole amount of public moneys in your hands at the time of the re- ceipt of this letter be forthwith deposited, and to apprize you that strict and punctual attention to the regulation in relation to the deposite of the public money is indispensable. 1 am. &('. R. B. TANEY, Wm. Linn, Esq., Secretary of the Treasury. Receiver of Public Money, Vandalia. 160 Rep. No. 313. Receiver's Office, Vandalia, September 30, 1834. Sir: Agreeable to your circular directing the payment to be made to the creditors of the Government, I have gone on to pay to Captain A. C. Ogden, superintendent of tlie Cumberland road, in Indiana and Illinois, which saves the transportation of the Government funds from this place to Louisville, as well as transporting them from Louisville to this place. This is of importance to the superintendent as well as myself, and a saving to the Government. Captain A. C. Ogden will apprize you of this arrangement, and request a dr-aft on me. He is now at Terre Haute. I have the honor to remain, with great respect, your obedient servant, WM. LINN, Receiver. Hon. I..EVI Woodbury, Secretary of the Treasury. Treasury Department, October 23, 1834. Sir: I would remark, in reply to your letter of the 30th uUimo, that you are not authorized to retain the public money in your hands, to meet anticipated demands arising under the circular of August last, contrary to the regulations which the Department has prescribed for the periodical deposite thereof. Observing, from your monthly return of the 30th ultimo, that, notwith- standing the positive injunction contained in a letter from the Department dated the 23d of June last, (of which a copy is herewith enclosed,) the public moneys have been permitted to accumulate in your hands, in viola- tion of the law and the instruction of the Department, since the 31st of May last, and that it amounted on the 30th ultimo to the sum of ^10,976 39, I am constrained by your continued neglect to call your imme- diate attention to the subject, and again to require that the whole of the public moneys in your possession be deposited forthwith. Unless you ex- hibit to the Department satisfactory evidence of your having done so prior to the 1st day of December next, accompanied by a statement showing your receipts and disbursements, and the bahmce with which you are chargea- ble at the time of such deposite, it will be my painful duty to submit the case for the action of the Executive, and to recommend the appointment of another person as your successor. I am. &c. LEVI WOODBURY, Secretary of the Treasury. Mr. William Linn, Receiver of Public Money, Vandalia, Illijiois. Receiver's Office, Vandalia, Noveynber IG, 1834. Sir: Your letter of the 23d ultimo has been received, in relation to my not having deposited the public moneys in my hand at the time spe- Uep. No. 313. 161 cifiod by the law on that subject, as well as by your instructions. When the Bank of Louisville rescinded her contract with the Department, I waited a considerable time for advice I'rom the Department how I should act ; receiving no instructions, I wei>t on to make adeposite, in the Branch Bank of the United States at St. Louis, of eight thousand dollars, of which I advised you. I then received your instructions to continue to depositc in the Bank of Louisville; shortly after which, I received your circular of August the 6th, to pay over to any creditors of the United States that I might have confidence in ; and shortly after, your instructions to d,eposite in the Savings Institution of Louisville. Your circular instruc- tion, under date of the 6th of AugiLst, was, and is, considered a matter of great importance to the people of this section, particularly as there are no banks nearer than St. Louis and Louisville. And imder that circular, I have paid over, to the orders of Captain Ogden, several thousand dollars ; and sent you, with my last monthly return, his receipt for three thousand dollars ; and have continued to pay to his order from time to time, for which he has promised to request drafts in his favor on me hereafter. You have ordered that my accounts with the Department be closed on the first of the next month. I shall be compelled to beg your indulgence until the last of the month, at which lime the quarter will end ; which will give me time to see Captain Ogden, and to settle my accounts with him. The payments made by me, and to the order of Captain Ogden, have been of great importance to all who had moneys due them from the road; as they received their money instead of checks on distant banks; and if I have acted contrary to your circular, it shall ])e my business to repair any injury that the Government may have sustained, by my future conduct, which shall be governed by your instructions. I am, with sentiments of respect, your obedient servant, WM. LINN, liecciver. Hon. Levi Woodbury, Secretary of the Treasury, Treasury Department, December 4, 1834. Sir: Allow me to inquire why it is that your letter of the 16th ultimo is entirely silent as to your neglect to con)piy with the positive directions contained in a letter from the Department dated 23d June last, and that you still neglect to pay over the public money in your hands, or to furnish the statement as required by my letter of the 23d uUimo, and a statement of your advances to Colonel Ogden. I am, &c., LEVI WOODBURY, Secretary of the Treasury. William Linn, Esq., Receiver of Public Money, VandaVia, Illinois. Treasury Department, February 12, 1835. Sir: Although it has pleased the President, under the explanations given, notwiihstanding your past neglect in some cases to deposite the 162 Rep No. 313. public moneys as required bylaw and the instructions of the Department^ to renominate you lor the oifice of receiver of pubHc money at Vandaha. and your nomination has been confirmed, yet it is not to be inferred, from this evidence of his regard, that any future omission in this resj)ect can be overlooked. Once for all, then, I would inform yon tliat a strict observ- ance of the regulations of the Department, for the periodical deposite of the public money, and the transmission of your accounts and returns, are paramount duties, the neglect of which will be reported for the action of the Executive. I am, &.C., LEVI WOODBURY, Secretary of the Treasury • William Linn, Esq., Receiver of Public Money, Vandalia, Illinois. Receiver's Office, Fandalia, March 18, 1835. Sir: Your letter of instructions, and advising me of my reappointment, has been received. I flatter myself that you are now satisfied that, al- though I may have erred in the payment of the Government money to the snpei'intendent of the Cumberland road, it was to be attributed to the pvirest motives, and not with a wish oi intention to infringe upon the re- quired duties of my office. From the vouchers furnished you, it will be shown that, since the month of September last, I have paid jS 15,000. This, as well as the balance in my iiands, lias always been paid over to the order of the superintendent, before I received any voucher from him, which, consequently, placed my accouilts behind. Those payments were made by me under the presumption that I would be sustained by your circular of the 6th of August last ; and before doing so, I had consulted my friends here, (including a number of my securities,) who coincided with me in the construction of that circular; and further concluded, that by making those payments I was doing the public a service, and would not incur your dissatisfaction. The piirascology of the superintendent's receipts never corresponded with my own on the subject, as they repre- sented or purported that the moneys paid by me were to be expended for the use of the Cumberland road, instead of stating, as they should have done, that they had been expended for that purpose. For, permit me to remark to you, sir, that the moneys were always paid long before I re- ceived the vouchers; consecjuently, my arrears appeared large, when, in fact, I had but an inconsiderable fund on hand belonging to the Govern- ment. The citizens and laborers on the road looked upon this arrange- ment as one of the best that could be adopted. The iiands were generally paid in specie, which they invariably preferred : tliey might otherwise have been paid in checks on the Bank of Louisville — a result to them, per- haps, not the most agreeable, as the intercourse between this and that place is inconsiderable, and, consequently, a loss would have been the con- sequence to the la])orer. The last payment from Captain Ogden to me was in a check of i?5,000,. drawn at Louisville, on his way to Washington city. He has not as yet returned: when he does, I will close my accounts with him, and pay over Rep. No. 313. 163 IK.) more moneys without a special order iVom you to that efl'ect. My duty 1 will endeavor to fulfil. I would beg leave to refer you to my let- ter addressed to the honorable Mr. Taney, in reference to the SS,000 de- posited by me in the Branch Bank of the United States at St. Louis. I never received any connnimication from him while in office, except a cir- cular under date of the iiOtli of November, 1S33, directing all future depos- ites to be made in the Bank of Louisville. That bank declined receiving Government moneys ou deposile. I waited to hear from the Secretary, to know how 1 should act on the occasion : and the sums were accumu- lating on my hands, increasing tlie responsibility of their safe-keeping. 1 was prompted to a.ssume a further responsibility, by making the deposite in the Branch Bank of the United States at St. Louis, and addressed him an explanatory letter to that etiect, to which I never received any reply; and it was not until the day the Senate of the United States acted on his nomination, tjiat I received a communication from him calling my attention ,to my duty, without suggesting any place of deposite for the sum above specified, and without noticing the contents of my letter to him in refer- ence to the 558,000 which I had already deposited. I have determined to accept the office you have tendered me, although 1 had been nominated by the Governor, and confirmed by the Senate, to the most responsible oliice in the State of Illinois — that of canal com- missioner and treasurer of the board. At the solicitation of my fellow- citizens of this district, I have declined the appointment conferred upon me by the State, and shall enter on the duties of receiver as soon as I file my bond, which will be in the course of a few days. My secinities living in different parts of the State, and the district judge and attorney being residents of Kaskaskia, a distance of 100 miles, will Occasion some little delay in the approval and transmission of my bond. Flattering myself that this letter may prove satisfactory, I have the honor to remain, with great resjx^ct, your obedient servant, WILLIAM LINN. Hon. Levi Woodbury, Secretary of I he Treasury. Receiver's Office, Vandalia, May 31, 1835. Sir: I have the honor to transmit, herewith, my account current for tlie month ending this day. I would beg leave to refer you to the com- munication you will receive from William J. Brown, Esq., examiner of the land oifice here, for an explanation of the cause which lias prevented me from making a deposite of the public moneys at the expiration of the present month. The roads throughout the State have been rendered im- passable by frequent and heavy rains. On the termination of the present quarter, 1 shall make a deposite of all the public moneys I may have received. I have the honor to remain, with great respect, your obedient servant, WM. LINN, Receiver. Hon. Levi Woodbury, Secrelarij of the Treaaury. ^^4 Rep. No. 313. Treasury Department, o V , , November 30, 1835. tember InroToblX^'^'^^^'l' k '^"^^^^ ^'' '^'^ months of August, Sep- tember and October, tiave not been received. The frequent occasions rt;: t" utttre^oTt^^^^ '' "^^^^^ ^ "^^^^^^^ ^' rSer^m r nt?n. m"^ ^"^ ^^'""^ "^^^^ effectual remedy than mere com- shall report any future omission in this respect for the action of the Executive, unless satisfactory reasons are ass gned for the neAect The returns in arrear are expected to be traiLsmitted forthwith " I am, &c. LEVI WOODBURY, Secretary of the tneasury. Keceivers of Public Money at Galena, Illinois, and Tallahassee, Florida. Receiver's Office, f^andalia, December 31, 1835. Dartmen "o^fhlf^ ^'"'p'- ^ P'°™^''^ '° '^°'^ "^^ ^^^°""^^' ^^^^h the De- ft f^w.i.h T n ^^- .^rr^''''''''' ^'^^"^ "^y ^^^"^'•o^ have prevented It, for which I hope satisfactory reasons have been given by my friends Captain Ogdeii being absent from his office has presented me from ot teimng from him a receipt for ^6,383 paid over Jo his order. You wSl observe from Captain Ogden's receipts that the moneys Iiad been pid over previous to my obtaining from him the receipts. I 1 ave now on Mv fd^nds"^ W:^^ Tl '"'^' '''■' ^-^^"^ '' ^'^''' «^' P^^t)hc moTeys My riends at Washington have received letters upon this subject from gentk^men here, which I hope will prove satisfactory. ^ 1 have the honor to remain, with great respect, your obedient servant, „ ^ WiVI. LINN, Receiver, rion. Levi Woodbury, Secretary of the Treasury. Treasury Department, February 4, 1836. Sir : Your returns for the months of October, November, and Decem- xl':.]^?rr' T '"^^i^^^d; I ^^g'-et that there should be any occasion du V nVl "'f ''I'/'J'^f "' ^^' '^'" "^'° "^^y ^^^) "^ this important duty, and avail myself of the occasion to inform you that, unless your .PpZf/h'?r ''''' u'T^'u ^ ^' '^''' Department within the month next suc- ceeding that for which the return is rendered, it will place me under the Rep. No. 313. 165 disagreeable necessity of reporting the fact to tlie Executive, in order to comply with the general rule in this class of cases. I am, &c. LEVI WOODBURY, Secretary of the Treasury. To Receivers at Palmyra, Alissouri, October, November, and December ; Edwardsville, Illhiois, November and December ; Qidncy, Illinois, November and December ; Shaivneetoivn, Illinois, October, November, and December ; Cahaba, Alabama, Noverjibcr and December ; St. Ste- phen''s, Alabama, November and December ; Colnmbus. Mississippi, November and December ; Mount Sahis, Mississijipi, November and December; Helena, Arkansas, December; Washingtoii, Arkansas, December ; 2^nesinlle, Ohio, December ; Plnceiines, Indiana, Decem- ber ; Chicai^o, Illinois, December ; Galena, Illi)iois, December; Van- dalia, Illinois, December ; Tuscaloosa, Alabama, December ; Au- s^iista, Mississippi, December; Chocchnma, Mississippi, December ; New Orleans, Ouachita, and St. Helena, Louisiana, December ; ^Green Bay, Michigan, December ; Batesville, Arkansas, December. Receiver's Office, Vandalia, February 26, 1836. Sir : Your letter of the 4th instant has been received, in which you complain of my returns for December not having been received. I will refer you to the Commissioner's otiice for my reasons for the returns not having been forwarded at the usual time, and I hope they may prove satis- factory. I have the honor to remain, with great respect, your obedienl servant, WM. LINN, Receiver. lion. Levi Woodbury, Secretary of the Treasury. Treasury Department, July 25, 1836. Sir : I am in the receipt of your letter of the 30th ultimo, covering your account current for the month of June, with two certificates of de- posite ; one of which bears date on the 30th of said month. I wish, therefore, to be informed why the entire amount of money on hand at the time the last deposite was made was not included in it ; the balance appearing by your account, not deposited, amounts to Si 5,129 04, which I have to request may be forthwith placed in bank to the credit of the Treasurer of the United States. I am, very respectfully, &c LEVI WOODBURY, Secretary of the Treamry. William Linn, Esq., Receiver of Public Money, Vandalia, Illinoii. 166 Rep. No. 313. , Treasury Department, Novcmhe7' 3\ 1837. Sir: Observing that large sums of money received by you in payment for public lands still remain in your hands. I have to request that you will let me know why the same not are placed to the credit of the Treasurer in the State Bank of Missouri, at St. Louis. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver ov Public Money, Vandaliay lUinoia. Treasury Department, December 8, 1837. Sir : Your letter of the 28th ultimo, aimouncing the death of Mr, Pren-. ti.ss, register, is received. Again it becomes my duty to call your atten- tion to the subject of my former letters in reference to the deposite of the public- money •, and to inform you that if, by return of mail, evidence is not received of your having complied with the requirements of my letters of IGth August and 3d November, it will be my unpleasant duty to report your neglect to the President, and to recommend your removal from office. I am, &c. LEVI WOODBURY, Secretary of the Treasury. William LiNxV, Esq., Receiver, Vandaliu, Illinois. Treasury Department, / January 20, 1838. Sir : Your letter of the 7th instant is received, and your resignation is accepted by the President. I regret that so large a balance stands 'unad- justed in your hands, and trust that cerlilicates of deposite for the amount with the Bank of Missouri will, without delay, be forwarded here, I am, &c. LEVI WOODBURY, Secretary of the Treus^iry. William Linn, Esq., Vandalia. [Balance due froui Mr. Linn, tifty-rivc tliousand ninf hundred andsixfy- two dollars and six rents, ($55,962 06.)] Bep. No. 313. 167 5, — Correspondence ivi/h JV. P. Harris, receiver at Columbus. Circular to Receivers of Puljlic Money. Trkasury Departaient, ./(r/wt/rtry 15, 1834. Sir: Many of the receivers of public money having failed to observe that part of the general instruction of the Department dated 1st of May, 1831, which relates to the endorsement therein required to be made on the receipts given by them in payment for public lands, and omitted to furnish statements of the aggregate amount received in each description of funds in each month, it becomes my duty to call your particular atten- tion to the regulation referred to, and to insist upon its strict observance, as well dnritiir the ])ublic sales as at the time of private entries. In the performance of this duty, it is essentially necessary that the endorsements should exhil)it the amount received in the funds of each banlr, and that the monthly statement should afford like information in regard to the aggregate receipts of each month. As the existing instructions given for the regulation of your conduct in the receipt of bank notes in payment for public lands authorize you, under circumstances of well-founded dis- trust, to discontinue the receipt of the notes of the State .1 anks at. any- time, it is not proposed to make any change in the instructions which have heretofore governed you in the receipt or refusal of such notes. I would, however, enjoin upon you a vigilant attention to the interests involved in the authority thus given you, and the exercise of a sound dis- cretion in the use of it. I take the occasion to advert to the necessity of a prompt compliance with the regulations of the Department in regard to the deposite of the public moneys, and a punctual observance of the instructions which re- late to your monthly returns. I am, &c. R. B. TANEY, Secretary of the Treasury. Columbus, (Miss.) February 13, 1834. Dear Sir: Enclosed you will find a certificate of deposite from Wm. B. Winston, cashier of the office of the Planters' Bank at this place, for the sum of thirty-five thousand two hundred and eighty-one dollars and eight cents, which has been placed to the credit of the Treasurer of the United States. I have heretofore enclosed you the following certificates of deposites, and have not received an acknowledgment of the same. I would be glad you would acknowledge the same in your next. To wit ; Certificate of deposite from S. Sprague, cashier Planters' Bank, dated October 30, 1833, for . , . " . - - g 10,800 73 One dhto November 25, 1833, for - - - - 2,971 16 One ditto November 30, 1833, for - - - - 8,300 00 One ditto December 23, 1833, for - ,- - - iy7,7(i8 51 One ditto from W. B. Winston, cashier of Planters' Bank, dated January 11, 1834, for . - - - 75,990 80 Certificate enclosed . _ . - - 35,281 OS S33I,118 28 168 Rep. No. 313. Your circular dated the 15th ultimo is received. I shall strictly attend to the same. It was not practicable for me to make the endorsements during the land sales, and since that time I have been so very busy making out my returns that I have not been able to attend to it. Respectfully, yours, W. P. HA.RRIS, Receiver. To the Secrktakv of the Tueasury. Treasury Department, February 7, 1834. Sir: It has been represented to this Department that some of the re- ceivers of public money in Mississippi have been engaged in trading on the bank notes they receive in payment of public lands, by exchanging them for bank notes of inferior value. I hope that there may be some mistake in this business, as it is my duty to state to you that such con- duct would be regarded by this Department as a gross violation of official duty, and be treated accordingly. But, as such a statement has been made from the most respectable authority, I nuist ask whether you have engaged in any such use of the pubUc money received by you; and re- quest a prompt answer to this inquiry. I am, &c. R. B. TANEY, Secretary of the Treasury, To Receivers ok Public Money at Jliigiistay Salus, JVashingtou, Chocchunia, and Columbus. Receiver's Office, Columbus, (Miss.) February 26, 1834. Sir: Yours of the 7th iiLstant is at hand. I presume tliat the charge of changing the public niDueys for other of less value was not made in rela- tion to myself. If it was, 1 must plead guilty in this much: that I have, for the accommodation of travellers, exchanged money to suit that section of country to whicli they were going ; but in no instance have I ever taken any money but what was receivable in payment of lands. To this, I think, the register will do me the justice to certify. I am, very respectfully, your obedient servant, W. P. HARRIS, Receiver. Coi.UMHUS, February 26, 1834. 1 have perused the above communication, and, as reference is made to me, I hare no hesitation in saying that the facts therein set forth are per- fectly in accordance with truth, so far as my knowledge extends. Respectfully, WILTJAM DOWNING, 7?c^w/cr- Hon. R. B. Taney, Secretary of the Treasury. Kep. No. 313. 1G9 Treasury Department, March 6, 1834. Sir : The several certificates of deposites referred to in your letter of the 13th uhimo were received in due course. As the ackiiowledgment of such papers and returns addressed to the Department would greatly add to the business of the office, it has not, on that account, been usual to do so. When not advised to the contrary, it may be presumed they have been received ; and, in regard to the returns which are required to be rendered, it becomes my duty to advise you that those for the months of November, December, and January, are in arrear : and to say to vou that a strict and punctual observance of this duty is indispensable. I am, &c. R. B. TANEY, W. P. Harris, Esq., Secretary of the Treasin-y. Receiver of Public Money, (■olunibus, Miss. Treasury Department, March 17, 1834. Sir : 1 have received your letter of the 26th ultimo, and have only to say that the Department cannot approve any exchange whatever in the money received by you ; that which is received must be deposited. I am, &c. R. B. TANEY. W. P. liARRis, Esq., Secretary of the Treasury. Receiver of Public Money, Columbjis, Miss. Treasury Department, March 25, 1834. Sir : The Department having received no monthly returns showing the transactions of your office from the month of October last, I have thought proper to inform you that, as a means of enforcing a strict com- pliance with the regulations of the Department, in respect to this duty, I shall not hesitate to report the case for the action of the Executive, should the' neglect be continued. I am. &.c. R. B. TANEY, W. P. Harris, Esq., Secretary of the Treasury. Receiver of Public Money, Columbus, Miss. Treasury Department, May 19, 1834, Sir : I^cst the letter of whicli the enclosed is a duplicate may have mis- carried, I have thought it proper to transmit a copy, and again to call your attention to its requirements. I am, &c. R. B. TANEY, Receivers of Purlic Money, Secretary of the Treasury. Augusta, Mount Salus, Columbus, Chocchuma. Receiver's Office, Columbus, (Mi.isissippi.) June 6, 1834. Sir : Yours of the 19th ultimo is received ; and, in reply, I only have to say that my monthly accounts current for the months of November and 12 170 Kep. No. 313. December, 1S33, and lor the mcntfis of January, February, March, and April, 1S34, were forwarded you in due time ; and why you have not re- ceived them I am unable to account for, unless it is owing to a failure in the mails; they were regularly forwarded you and to the Conniiissioner of the General Land Office, and mailed in tlie post office at tliis place. My monthly account current for this montii is now ready, and only wants a comparison with the register's register of receipts, wiiich, when com- pared, will be forwarded. RespectfuUv, sir, vour obedient servant, W. P. HAi^RIS, Receiver of Public Money at Columbus, Miss. Hon. Secretary of the Treasury. Treasury Department, February G, 1S35. Sir : I regret that there sliould be occasion for again calling youratten- tion to the omission to render your monthly duplicate returns to this oflice for the months of November and December, (those being in arrcar.) and to remind you that punctuality in this respect is indispensable. I am, &c. LEVI WOODBURY, W. P, Harris, Esq.. Secretary of the Treasury. Receiver of Public Money, Colwmbus, Miss. CIRCULAR. Treasury Department, February 28, 1835. Sir : It has been intimated to the Department that a practice prevails at some of the land offices of permitting entries and issuing certificates of purchase without the payment of the- purchase-money at the time of the entry. Such a .])ractice being unauthorized and highly reprehen- sible, I have deemed it proper to make known to you, that if it has been tolerated by you, it must immediately cease ; and any repetition of it here- after, coming to th(i knowledge of the Department, will receive prompt and exemplary notice. I cannot omit the occasion to impress upon you the necessity of a strict attention to, and punctual compliance with, the duties required of you in regard to the prompt deposite of the public moneys, and the transmission of your accounts and returns ; and to say to you that the performance of those duties must be regarded as paramount to all other in your oflicial station. I am, &.c. LEVI WOODBURY, Secretary of the Treasury. To Receivers of Puueic Money at Cahaba, Huntsville, Montgomery, St. Stephen's, ^^iugusta, Chocchunia, New Orleans, Ouachita, Demo- polls, Mardisville, Sparta, Tuscaloosa, Columbus, IVashington, Opc- lousas, and St. Helena. Treasury Department, 3/t/rcA 17, 1835. Sir : Having received no monthly duplicate return of the transactions of your office since that for the month of October last, it becomes my Rep. No. 313. 171 unpleasant duty to call your immediate attention to the omission. Allow me to (express a hope that there may be no further occasion to remind you of the importance of punctuality in the transmission of these returns. I am, &c. LEVI WOODBURY, Secrelar}/ of the Treasury. To Receivers of Public Money : W. P. Harris, Colu7nbiis, Mississippi. R. H. St RULING, Chocckumd, do. B. R. KoDGERS, Opeloxisas, Louisiana. T. Simpson, Demopolis, Alabama. [Xovember for October for tlie two last named.] P. S. To tlie receiver at Opelousas : Having received no evidence of your compliance with the requirements of my letter of the 1st November last, I take occasion to apprize you that, unless yon exhibit satisfactory evidence of your having deposited the whole of ihe public money m your hands at the time of such deposite, on or before the 1st of April next, I shall be under, the disagreeable necessity, in the discharge of my duty, to report your neglect for the action of the Executive. CoLUJiBus, April 1, 1835. Dear Sir : Your favor of the 27th March was received on this day. The reason why the returns mentioned in your communication were not made, is this : tiial we have not had t!ie necessary blanks for that purpose ; and also the interference of the public land sales at this office, and the immense business done at this office since the sales have closed, are all reasons I shall urge for the delay of such returns. I shall make them so soon as I can do so. Respectfully, your obedient servant, W. P. HARRIS, Receiver. Receiver's Office, Cohnnbiis, April IS, 1835. Sir : Enclosed you will receive my monthly account current for the month of November, 1834, shov/ing a balance of SlOS.318 85. You will discover that I have neglected to give an account of the different kinds of funds received that month; there was such a press of business during the months of November and December that I found it impossible for me to render a correct statement ; but for the future I will give you a correct statement of the different kinds of funds received in each month. I have the honor to be, very respectfully, your obedient servant, ' VV. P. HARRIS, Receiver. Hon. Levi Vv'^oopburv, Secretary of the Treasury. Treasury Department, June 25, 1835. Sir: Having, in a communication addressed to you on the 17th of March last, and on several prior occasions, urged upon you the indispen- 172 Mep. No. 313. sable necessity of a strict attention to making your monthly returns, and finding that no returns have been received from you since that for the month of November last, it becomes my unpleasant duty to say to you, -.hat if those in arrear are not transmitted by return of mail, 1 shall be constrained to report your neglect for the action of the Executive. I am. &:c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public MoNsr, CohnJibus. Receiver's Office, Columbus, [Mississi])pi,) July 13, 1S35. Sir : Enclosed you will receive my monthly account current for tlie month of December, 1S34, showing a balance of ^385,067 S3. The returns would have been forwarded you sooner : but not having been furnished with the necessary blanks, which we could not procure here, it was out of my power. We did not obtain the blanks until we had written the third time. And, in addition, the press of business has been very great, which you will discover by our returns. Your obedient servant, W. P. HARRIS, Receiver. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, Arigust 28, 1S3j. Sir : Agreeably to the intimation given you in my letter of the 20t!i June, it has become my disagreeable duty to report your continued neg- lect to the l^resident ; who has instructed me to say to you, that if the monthly returns required from you by the regulations of the Treasury, which are in arrears, are not received at the Department on or before tne 10th of October next, you will then be dismissed from office. I am, &:c. LEVI WOODBURY, Wiley P. Harris, Esq., Secretary of the Treasury Receiver of Piihlic Money, Cohi7nbus, Mississippi. Columbus, September 14, 1835. Sir : Yours of the 28th of August is before me, in which you state •• that you are instructed by the President to say that if my monthly re- turns are not made by the 10th October, I will be dismissed from office." All I can say in excuse or extenuation of my seeming neglect in the office, is the great press of business, which will the more fully appear by reference to the certificati; of deposite. I have kept constantly employed in the oifica three clerks, and I do assure you that it is utterly impossible 10 keep the business up, as more than that number cannot be em])loyed. Every exertion shall be made to make out and forward the returns as soon as possible. I ask of the President a suspension of removal for a Rep. No. 313. 173 rime, until correct information be had with regard to the manner in which the business of the Oiiice has been conducted. You may be assured, sir. that the money is regularly deposited in the bank, and that the books are correctly kept, (only behind from an excess of business always on hand.; but which will soon, I think, diminish, when there shall be no cause of fu- ture complaint. With respect, I am your obedient servant, W. P. HARRIS, Receiver. Hon. Levi Woodbury, Secretary of the Treasurrj. Treasury Department, September 22, 1835. Sir : Allow me to inquire why it is that your deposites are not made in the branch of the Planters' Bank at Columbus, instead of the parent bank at Natchez ? Does the branch refuse to receive them, and credit the amount at the mother bank ? I am, &c. LEVI WOODBURY, Sccretari/ of the Treasury. Wiley P. Harris, Esq., Receiver of Public Money, Colianbiis, Miss. P. S. Your return for the month of February last has been received to- day, and shows a large amount on hand not deposited ; and you are here- by required (if not already done) to deposite any balance still on hand in the above branch, to the credit of the Treasurer, and forward receipts therefor, in order to save time and expense in travelling to Natchez. Treasury Department, September 28, 1835. Sir : I regret to say that the reasons assigned in your letter of the 14tli instant for withholding your monthly returns cannot hereafter be deemed satisfactory. I can perceive no sufficient cause for their being delayed longer than the first week in each succeeding month, as there can be no difficulty in ascertaining at once the amount of money received within the month, or in stating the amount of your disbursements and deposites during the month : this is all that is required in them. The object of these returns is to afford the Department the earliest information in regard to the money-operations of the land office, and the punctual transmission of all the moneys received to the bank of deposite. They are, therefore, of paramount importance, and cannot be permitted to await the completion of detailed book -entries, or the perfection of other business, be its charac- ter what it may. I am, &c. LEVI WOODBURY, VV. p. Harris, Esq., Secrclai^y of the Treasury. Receiver of Public Money, Columbus, Miss 174 Sep. No. 313. Receiver's Office, Columbus, {Miss.,) October 9, 1835. Sir : Enclosed lierewith you have my monthly accoimt current for the month of Sej)tember last, showing a balance of ^5181.604 63, In answer to your letter of the 22d ultimo, containing the inquiry, " M'hy my [your] (lepo.siies are not made in the branch of the I'laiitcr.s^ Ba)ik at Colum- bus, instead of in the parent bank at Natchez?^^ permit me to state, tliat an arrangement was made by me sometime in December, 1S33, or^Janu- ary, 1834, with the parent bank at Natchez, by which the cashier of the branch at this place was directed to receive my deposiles, and grant a re- ceipt for the same as credited to the United States, This ara-angement existed for some time, and was only terminated by the positive directions of the parent bank to the branch here not to receive my deposites. They v/ere then placed in the parent bank, at the sacrifice of much time and convenience, until such time as I prevailed on the parent bank to accept certificates of deposite to my individual credit, instead of the branch, in lieu of the money ; and on said certificates liave been, and are, predicated tiie certificates of deposite in the parent bank to the credit of the United States, This has been productive of much delay, tending to create only regret and mortification on my part; for, independently of the distance from this place to Natchez, (255 miles,) the officers of the parent bank have frequently delayed forwarding me certificates of deposites, until at certain periods ; weeks have elapsed before I have received a certificate oi deposite, and then one, only, for the aggregate amount of several de- posites. It must be evident, sir, that such a mode of transacting the bu- smess (the only one I can properly at present pursue) will frequently show a mucii larger balance on hand than acknowledged to exist. The certifi- cates are stated in my monthly accounts current as they are actually dated and drawn at the parent bank, while at no time has there not been a large sum in the bank in advance of the receipts of certificates. The certificates of deposites which are now duo from the bank at Natchez, and which are expected in course, will show but a small balance on hand. 1 will take the liberty to say that it will afibrd me more than ordinary gratification to submit my accounts and the general business of the office to the examination of the usual visiting ascent. Your obedient servant, Hon. Levi Woodbury, Secretary of the Treasury. W. P. HARRIS. Columbus, September 15, 1S35. Dear Sir : Many of the early and constant friends of the administra- tion in this State have heard, with much regret and sorrow, that the pres- ent receiver of public moneys at this place is to "coiisider himself dis- missed unless his returns are made before the first of October." I have long hadnhe honor of an intimate acquaintance with General Harris, and I can freely assure your excellency that a more honorable man. does not live, unblemished in all the relations of life, and standing high in the estimation of the public. He has served here for many years in the most responsible and dignified stations, and no man enjoys in this State a more diffused and deserved popularity. Rep. No. 313. 175 I am very well informed as to the management of the office. I reside in the district, and know that he is the most indefatigable business man in the State. Since he received the appointment, he has been absent but once, and then only for a few days. Day and night he is there. The people speak of this everywhere. He has constantly had three, and now four, clerks at work, who, in my own knowledge, have been engaged from sunrise until ten at night, and he cannot obtain them for less than fifty dollars per month. His receipts must have been between twelve and fourteen hundred thousand dollars, and the labor for the ensuing six months will be arduous in the extreme. I know that the receiver suffered under great inconvenience for two or three months, being without ab- stracts, which were not obtained from Washington until he had written three or four times, and even then were much delayed by the extraordinary failure of the mails. ^ From my knowledge of the business of the office, I do not think it possible that the receiver can accomplish his returns by the first of October, though every exertion will be made, and has been made, to keep up with the business. I have known the receiver and his clerks to be at work, time after time, until after one o'clock at night; and the Strongest testimonials from the best and most influential friends of your excellency can be had as to his integrity and industry. General Harris has never engaged in speculation, either directly or indirectly. Poindexter employed a vile, unprincipled agent (Gibson Wooldridge) to take testimony at this office, under a resolution of the Senate : and he en- deavored to implicate General Harris and George W. Martin in some transaction of very minor' importance. If I had been examined, I could have explained tjie whole matter to the entire exoneration of General Harris; and I could have explained the whole transaction, as it regards Colonel Martin, to the satisfaction of the world. The fact is, it w,a3 a mis- erable attempt, on the part of Poindexter, to strengthen his party here. He hates Colonel Martin with the malignity of a demon ; and nothing would rejoice him more than the expulsion of General Harris, whom he knows to be one of the main pillars of the democratic cause, and one of the earliest and most distinguisiied friends of the adininislration in Missis- sippi. His family and connexions are extremely influential, and all of them are co-operating with us in the arduous struggle which we are now making. They are true democrats ; and the bank, nullifying, and White parties would shout " victory" at any blow aimed at them. We are now in the midst of an electioneering campaign. Governor Runnells, R. Walker, Major B. W. Edwards, and myself, constitute the democratic Van Burcn ticket. It will be a close contest. The Nashville papers circulate extensively through our State. Much of our population is from Tennessee ; nine-tenths of our newspapers are for White ; and every bank in the State, including the United States branch, has taken commission in his service. Some three or four thousand of our voters are recent emigi-ants from otlior States, and residc_ in the new counties, knowing nothing of our political arrangements ; and, as we have no mails circulating among them, the result, as to them, is doubtful. With high respect, I remain vonr excellency's most obedient servant, JOHN F. H. CLAIBORNE. To His Excellency the President of the United States. 176 Rep. No. 313. Columbus, (Miss.,) September 14, 1S35. Sir : General Wiley P. Harris, Ihe receiver of public moneys at this place, has shown me Ihc letter of the honorable Levi Woodbury to him of the 2Sth of August. In that letter, he is required, as such receiver, to have the arrears of his monthly returns made to the Treasury Department by the 10th of October next ; and he is informed that, in case the same sliouid not be done by that time, he will be dismissed from office. In troubling you with this letter, I have felt considerable diffidence,' arising from your not having now more than an introductory acquaintance with me ; if, indeed, you should now recollect that acquaintance. Were Congress now in session, that diffidence would be greatly abated, as I could refer you to several of the Tennessee delegation, with those from this State, who are well acquainted with me, and who would, I doubt not, unite in bearing testimony that I would be incapable of making mis- representations to you. Having had considerable knowledge of the business done in the land office here, and of the attention and industry with which its duties have been discharged, I have been requested by General Harris to say to you what I may know on the subject. The amount of money reported by the receiver to the Treasury Depart- ment, arising from the sales of public lands at this office, will satisfactorily indicate to you the unprecedented amount of public lands sold here within a limited time past. The greatly-increased labors called for by the operation of the late pre- emption laws will, I am persuaded, suggest themselves to your considera- tion. The Department must needs be satislied with the prompt and faithful accounting for the public money, as duplicate certificates of deposite in the Planters' Bank are generally obtained semi-weekly, and forwarded. I know that General Harris has generally had three clerks employed in the office: and such, indeed, has been the press and quantity of business on hand, that he and they have been frequently engaged until 10 or 11 o'clock at night. The utmost active and indefatigable labors will be immediately put in requisition, with the employment of additional clerks, until the desired re- turns shall be completed and forwarded ; and it is confidently believed that the great amount of business these returns will show, will furnisJi, of itself, a satisfactory excuse for the otherwise seeming delays. It is in unison with the prevailing sentiment now, to say that the re- ceiver's office at this place is faithfully, attentively, industriously, and ably conducted ; and it is hoped that General Harris's dismissal from office may be suspended until he can make out the returns ; and it is confidently believed that they will contain within themselves a highly satisfactory excuse for the complained-of delay of the monthly returns. I have the honor to be, with great regard, your obedient servant, STEPHEN COCKE. His Excellency Andrew Jackson, President of the United States. Rep. No. 313. 177 Columbus, (Miss.,) October 10, 1835. Sir : I have the honor to report that Wiley P. Harris, Esq., re- ceiver of public moneys at Cokimbiis, has not complied with the require- ments of your letter of the 2Sth August; and that his returns for May, .June, July, August, and September, are in arrears. According to his return for April, there was on hand the sum of ^211,059 03 on the 30th of that month; yet his succeeding deposites, made on the 9th and 11th May, were no more than ^140,000; when, according to the regulations, the whole sum should have been deposited. His previous deposites, made in January, February, March, and April, are all very far short of the money on hand at the end of the previous month. The Department is advised of deposites made dnring the period for which his returns are in arrears, amounting to the sum of ^450,000 ; but, in the absence of any knowledge of the receipts of the land office at the period of the several deposites, it cannot be ascertained whether the amount deposited at the respective dates embraced all the moneys on hand or not. Respectfully submitted : J. ,McG., Clerk. Hon. Secretary of the Treasury. P. S. Mr. Harris's letter, with letters from Messrs. Cocke and Clai- borne, are enclosed. Treasury Department, October 12, 1835. Sir : Trusting to the assurances given in your letter of the 14th ultimo, and to those of your friends, made in your behalf, the President has con- sented, upon the facts now before him, to continue you in office until the 12th November proximo ; then, unless your monthly returns are all ren- dered, and satisfactory evidence that the whole of the public moneys with which you are chargeable are deposited, you must be removed from of- fice, iiowevcr painfnl to both him and this Department. I am, &.C. LEVI WOODBURY, Secretary of the Treasury. W. P. Harris, Esq., Receiver of Public Money, Columbus, Mississippi. Treasury Department, October 26, 1835. Sir : I have to observe, in reply to your letter of the 9th instant, tliat the allowance authorized by the regulations of the Department, as a com- pensation for travelling expenses, and risk in the transmission of the pub- lic moneys to the bank of deposite,can only be made when such expenses and risk have actually been incurred, and not in any case where both are avoided by means of the facilities afforded by the mail or deposite banks, ^loreover, inasmuch as the branch bank of Columbus receives and credits the moneys received by you in the first instance, I can perceive no reason why each deposite in past months should not have embraced the whole 178 Rep. No. 313. amount in your possession at the time of such deposite, as the instruc- tions require. 1 am, &c. LEVI WOODBURY, Secretary of the Treasuri/. W. P. Harris, Esq., Receiver of Public Money. CoIumbu<. Treasury Department, November 28, 1835. Sir: Your letter of the 11th instant, and return for the month of Oc- tober, are received. As your deposites of pubHc moneys are made at Co- himbus, no reason whatever can be seen why the whole money jn your hands at the end of tlie month is not deposited; it is expected that it Avill be hereafter. I am. &c. LEVI WOODBURY. Secretary of the Treasury. W\ P. Harris, Esq., Receiver of Public Money, Columbits, Mississippi. Treasury Department, I February 4, 1836. Sir: Your returns for the months of October, November, and Decem- ber, have not been received. I regret that there should be any occasion to notice the neglect or accident, (as the case may be,) in this important duty ; and avail myself of the occasion to inform you that, unless your fu- ture returns are received at the Department within the month next suc- ceedhig that for which the return is rendered, it will place me under the disagreeable necessity of reporting the fact to the Executive, in order to comply with the general rule in this class of cases. I am, &.C., LEVI WOODBURY, Secretary of the Treasury. To Receivers at Palmyra, {Missnari,) October, November, and De- cember ; Rdwardsville, {Illinois,) November a7id December ; Qnincy. {Illinois,) November and December ; Shawneetotvn, {Illinois.) Octo- ber, Noretnber, and December ; Cahaba, {Alabama.) November and December ; St. Stephen's, {Alabama,) November and December : Columbus, {Mississippi,) November and December ; Mount Salus. {Mississippi,) November and December : Helena, {,'lrkansas,) De- cember ; fVashington,{Arka7isas,) December; Zanesville, {Ohio,) December; Vincomes, {Inditnia.) Decetnbcr ; Chicai^o, {Illinois.) December; Galena, {Illinois,) December ; Vandalia, {Illinois,) December ; Tuscaloosa, {Alabama,) December ; Augusta, {Missis- sippi,) Decem,ber ; Chocchicma, {Mississippi.) Dcce7nber ; New Or- leans ; Ouachita, and St. Helena, {Louisiana.) December; Green Bay, {Michigan,) December ; Batesville, {Arkansas,) December. Hep. No. 313. 179 Columbus, Fehrvary 27, 1836, Sir : Yours of the 4th instant came to hand this morning. I can say, sir, in answer, that my return for the month of November was ready to forward on the 15th of December last; but, several small errors, of v/hich I imve notified the Department, in the returns, which 1 for- warded without comparing witli the register's books, induced me to wait until the register's books were brought up, m order that my books should be correct. The register's register of certificates is ready this morning; an(i I will compare my return for November, nnd immediately forward il. The return for the month of December will be ready and forwarded in a few days. The public money has been deposited, and certificates for- warded regularly. I can assure you, sir, that my returns are not delayed through my negligence. I will forward them for the future without wliit- ing to compare with the register, unless otherwise directed. I am, sir, yours, very respectfullv, W. P. HARRIS, Receiver. Hon. Levi WoOdbury, Secretary of Ihe Treasurij. Columbus, (Miss.,) March 13, 183G. Sir : Enclo.sed you will receive my monthly account current for the month of November, 1S35, showing a balance of four hundred and sixty-six thousand four hundred and ten dollars and fifty-nine cents. (S466,410 59.) The returns for the months of December, January, and February, will be forwarded in ten or t\yelve days. 1 am, sir, very respectfully, your obedient servant, W. P. HxlRRIS, Receiver. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, March 28, 1836. Sir: Your letter of the iSth instant, enclosing your return for the month of November, is received. Again it becomes my unpleasant duty to complain of your neglect in this respect, and to inform you that the omission to transmit the required monthly suitements for a whole quarter after they are due, cannot be permitted in any public oliicer ; and especi- ally after having been heretotbre so often reminded of the consequences of such neglect. On the return of the mail, therefore, if the usual state- ments for the other months in arrear are not received, 1 shall be under the disagreeable necessity of again submitting the subject to the President, for his immediate action. I am, &.C., LEVI W00DJ31TRV, Secretary of the Treasury. W. P. Harris, Esq., Receiver of Public Money, Coluvibus, Mississippi. 180 Rep. No. 313. Receiver's Office. Columbus, {Miss.,) April 25, 1836. Sir: Yours of the 2Sth ultimo, complaining of my monthly returns not having been forwarded, came to hand. And I now have the pleasure of informing you that my monthly return for December was mailed 2Sth of March ; that for January was mailed 4th of April ; that for February on the 1 1th of April ; and the last, for March, was mailed the 18th of April ; all of which you have received, no doubt, ere this. Respectfully, yours, W. P. HARRIS, Receiver. Hon. Levi Woodburv, Secretary of the Treasury. Receiver's Office, Columbus, (Miss.,) May 23, 1S36. Sir : Herewith enclosed you will please find my monthly account cur- rent for the month of April last, showing a balance of one hunch-ed and twenty-eight thousand five hundred and eighty-four dollars and seventy cents,'(S^128,584 70.) I am, very respectfully, your obedient servant, W. P. HARRIS, Receiver. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, June 6, 1836. Sir : Your letter of the 23d ultimo, accompanied by your returns for the month of April, is received. Seeing the balance of public moneys in 3'our hands amounted to Si 28,584 70 at the end of that month, I have to request that you will explain why it was that the whole of the public moneys in your hands on the last of the previous month was not deposited, instead of a part, in conformity to explicit and frequent instructions on that point. It is painful to be obliged to ask you so often for explanations. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, Columbus, Mississippi. Receiver's Office, Columbus, {Miss.,) June 27, 1S36. Sir : Your favor of June 6 is received, in which you complain of the amount of funds in my hands. I will inform you that I make my^de- posites in the branch bank at this place, weekly, which you will observe from the letter I send you from the cashier. It is altogether owing to Hep. No. 313. 181 the irregularity of the mails that I am unable to receiv^c the certificates of depositc from Natchez. And I shall now be under the necessity of send- ing an agent there for the especial purpose of obtaining the certificates. This is produced by the high water between here and Natchez, which at this time renders the roads almost impassable. Yours, respectfully, Hon. Levi Woodbury, Seoetai'y of the Treasury. VV. P. HARRIS, Receiver. Office Planters' Bank, Columbus, Jane 22, 1836. Sir : By the request of W. P. Harris, Esq., receiver of public moneys at this place, I would state that he has regularly made his deposites in this office, and obtained from us from three to four certificates monthly. I would farther observe, that so far as my knowledge of the nianasemenv of his oflice extends, it has been conducted with perfect propriety, and a strict regard to the interests of the Government. Very respectfully, W. B. WINSTON, Cashier. lion. Levi Woodeury,1 Secretary of the Treasury. Columbus, (Miss.,) ^iugusi 27, 1S36. Dear Sir: In obedience to a circular from the Commissioner of the General Land Office, under date of the 25th May last, requiring me, as receiver of the land office at Columbus, to execute a new bond in the penalty of ^200,000, I did sign the bond enclosed to me by the Depart - snent, and have procured the signatures of nine different gentlerren. who, I presume, would be deemed amply sufficient sureties for a greater sum than that required in tlie bond ; but, after procuring this security, some facts have come to my knowledge which have induced me to adopt a different course. You are aware that complaints have from time to time been made by the Department, on account of the tardiness of some of my official returns, and of the deficit of the returns of moneys whicii they ex- hibited. The immense amount and press of business which have con- stantly existed in this office since its establishment were the av^ologies which 1 had to offer lor my apparent delay and dereliction, and which I then believed would be fully rectified so soon as the business of the office would admit of more leisure and minute examination. Tiiis examination has been recently made by me ; and although I have taken upon myself to send an agent to Natchez to examine my bank account particularly, and have made a pretty thorough examination of my own accounts and official papers, I regret to say that I still find that there is a deficit against me, whicli as yet I am unable to account for. Under these circumstances, I feel that the only alternative left, and i\M 182 Rep. No. 313. one wliich my duty towards you and the public for whom 1 act requires, is to tender to you my resignation as receiver ol' the land office at Columbus, Mississippi. 1 I'eel assured, from former demonstrations of your kindness towards me, that 1 have heretofore enjoyed your conlidence; and I regret that any circumstances should have occurred calculated in the least to impair that confidence. I however trust and believe that I will yet be able to explain the whole matter satisfactorily, and that neither the public nor my friends will sustain any loss tliereby. I wish my resignation to take eflcct from and after the last day of the present month, (August,) at which time I shall, in anticipation, close up the business of the otfice. In conckision, I will take the liberty of recommending to you for ap- pointment as my successor, Colonel Gordon D. Boyd, of Attala county. You are probably acquainted with his public character, as he has been for several years a prominent member of our State Legislature, and has been throughout an ardent supporter of your administration, and an un- yielding advocate of the principles of democracy. This request^is made in his behalf, in ])art, on my own account. As he is my warm personal friend, he will willingly alford me every facility in his power to trace out and explain any errors which may have occurred while the office was under my charge. His capability to manage the office I think unques- tionable ; and it is only at my suggestion that he consented to my placing his name before you, and will most probably make no application through any other medium. In conclusion, permit me to express to you assurances of my high consideration and esteem. Respectfully, yours, &c. W. P. HARRIS. Andre vv Jackson, President of the United States. Endorsorncnt in the handwriting of the President. " Referred to the Secretary of the Treasury. The within resignation cannot be accepted until he settles up his accoinits. If necessary, he can be suspended or removed. — A. J." Tkeasuuy Departmen r, September 21, ISSfJ. SiK : Your letter of the 27th ultimo, addressed to the President, has been rcferrcid to this office. Your duties as receiver will, of course, have ceased, or been suspended, after tlie 3 1st ultimo, the time wheti you pro- pose your resignation should take cflect. Immediate steps, it is hoped, will be taken to adjust your accoinits and pay over the balance. Soon as the President returns, a further communication will be made to you. I am, tSs:r. LEVI VrOODBURY. Secret (iru of the Treasury. W. P. JIaukis, Es(j., Colli rnbus, Mississippi. Rep. No. 313. 183 [The letter to the President by Harris, and referred to tliis office, with the endorsement thereon, reached it on the 21st of September, 1S36 ; and, on the same day, measures were ordertHl to be taken to secure and collect what was due from him, and he notified that he was suspended from ot- iice ; and the register was also notified of the fact, as appears by the an- nexed lette-rs. On the President's return to the city, (October 3,) a succes- sor was appointed. — L. W.] Tkeasury Department, September 21, 1836. Sir : I would remind you of the necessity of ascertaining the balance due by >rr. Harris, receiver at Columbus, as soon as practicable, and of taking measures to secure and collect the same ; as he has been notified that his duties as receiver ceased after the 31st ultimo. I am, respectfully, &c. LEVI WOODBURY, Secretary of the Treasury. To the Commissioner of the General Land Office. Trkasury Department, September 21, 183(3. Sir : I transmit, for yonr information, a copy of a letter addressed to W. P. Harris, Esq. Upon the return of the President a successor will be appointed. I am, respectfully, sir, &c. LEVI WOODBURY, Secretary of the Treasury. William Downing, Esq., Register Land Offce, Columbus, Miss. CoLUJiBUs, (Miss.,) November 1, 1S3G. Dbar Sir : I write for the purpose of advising you as to my situation in regard to my late connexion w^ith the land office in this place. The state of my health has been such, of late, that I have not been able to ex- amine into my ofFice-account ; and as I feel that the prospect of its improvement is extremely doubtful, I am preparing to remove immedi- ately to Brandon, near the seat of Government in this State. I have, however, engaged the service of Mr. Robert E. Harris, my nejiliew, who was engaged for some time with me as a clerk, who, together with my suc- cessor hi odice, has kindly proffered his assistance, will make a thorough examination, and, if possible, trace out the error, or ascertain why it is that I appear to be so much in arrear. In the mean time, however, I am preparing Ibr the worst, by selling off, on credit for bankable ])aper, all my property, which I can make more than sufficient to meet the deficit. 184 Ifep. No. 313. should an indulgence be extended to me which will enable me to cany my views into eli'oct. 1 beg to request of you that you will not commence suit or any action upon my othcial bond until, if necessary, I can make an application to Congress to extend to me the necessary indulgence, as it is nnpossible for me to sell njy property for cash. A coercive and rigid course towards me would not only have the eft'ect of taking from me tlie means of doing justice, but occasion a loss to the Government which it would not otherwise sustain. I can assure this much, that if I am in arrears to any thing near the amount which the account shows against me, I have not used it, or derived any benefit therefrom ; but it is so much actual loss, which is as yet to me unaccountable. Throughout my life I have endeavored to act justly and correctly towards others ; and I feel just as little disposed to act ditferently towards the Government, whose officers have reposed confidence in me ; and I now assure you tliat all my effects are ready to be given up to satisfy its just demands, in whatever manner may be required of me. As no possible good can result from a rigid course towards mc, but, on the contrary, the consequence might be the impov- erishment of my family as well as loss to the public, I do hope that, if consistent with your official duty you can, you will take no steps until it may be seen whether Congress will grant to me any indulgence. I re- spectfully request an answer to this communication. I have the honor to be, very respectfully, vour obedient servant, W. P. HARRIS. Hon. Levi Woodburv, Secretary of the Treasury. Treasury Department, Nov'r 19, 1830. Sir : I have received your letter of the 1st instant, by the mail of this mornir;g; and regret to inform you that, as long ago as August last, steps were taken by the Solicitor of the Treasury to attempt to secure the bal- ance due from you. I am, &c. W. P. Harris, Esq., Colli 771 bns, Mississipp i. LEVI WOODBURY, Secretary of the Treasu7'y. [Balance due from Mr. Harris, one hundred and nine thousand one liundred and seventy-eight dollars and eight cents, (55109,178 08.) See state- ment.] 6. — Corrcspo7idence with G. I). Boyd, receiver at Colu77ibus. Receiver's Office, Cohnnbus, {Mississippi^) JJec'r 9, 183<). Sir : I have lately received, in payment for lands entered at this office, a number of the receipts of the Treasurer of the United States for money deposited by the holders ol (hem. 1 liave been in the habit of receiving Eep. No. 313. 185 them as money, and giving out my own receipts, as in other cases for money actually paid to me. ll\)on the examination of the law, however, I liave doubts whether I ought to receive them in tliis way, as the law seems to require that tlic holders of them shall produce such receipts to the register of the land office, and has no other directory provisions. I therefore request to be advised upon this subject. Respectfully, your obedient servant, G. D. J30YD, Receiver. Hon. Levi Woodbury, Secretary of the Treasury. TKKAsuuy Department, />cV 26, 1836, Sir : In reply to tiie inquiry made in your letter of the 7th instant, I would respectfully refer you to the enclosed circular, I embrace the oc- casion to call your attention to the necessity of making your monthly returns to .this office as soon after the expiration of each month as prac- ticable. I am, &c. LEVI WOODBURY, Secretary of the Treasury. G. D. BovD, Esq., Receiver of Public Money, Columbus, Miss. XORTIIEASTERN LaNU DlSTRICT, Columbus, {Miss.,) January 21, 1837, Dear Sir : 1 herewith enclose to you a certificate of the cashier of the Planters' Bank in Natchez for the sum of eighty-six thousand five him- dred and ninety-three dollars and forty-six cents, deposited by me to the credit of the Treasurer of the United States, In explanation of the delay of our monthly returns for the month of December, I will mention that .some time since I had them in reathness, but, in consequence of what the register informed me would be considered as objectionable in them, I have retained them for correction. The errors arose from the fact, that, at the opening of this office, on the 1st December, owing to the great press of business, I permitted (with the consent of those who resided in this vicin- ity) those who lived at a greater distance to pay out their receipts first, and dated each on the day on which it was actually paid out ; in conse- quence of which, some of the higher numbers were dated earlier thaa those which preceded them. I shall, however, have both my monthly and quarterly accounts ending with the month of December in readiness in a very few days. Very respectfully, yours, &c. G, D. BOYD, Hon. Levi Woodbury, Receiver of Public Moneys. Secretary of the Treasury. 13 186 Rep. No. 313. Treasury Department, February 18, 1837. Sis: Your letter oi' the 29th ultimo, respecting the manner scrip is to be assigned, has been received. The fourth section of the act of 30th May, 1830, provides that assignments shall be by ent/orte?nent thereon,, attested by two witnesses. W!;ere genuine sciip is presented, endorsed as rnjuired, and you have no reason to suspect the same to have been forged, there can be no objection to your receiving the scrip ; but you have, in all such cases, to act on your judgment, as your accounts can be credited with that only which is regularly transferred to the individual asking it. It is not necessary the assignment should be made in your presence. I am, &c. LEVI WOODBURY, Secret cn'y of t lie Treasury. Receiver of Public Money, Colutnbus, Mississippi. Treasury Department, y/oy 25, 1837. Sir: I regret to be under the necessity of complaining of your neg- lect to transmit your return for the month of March last, and of remind- ing you that greater strictness must be observed in the performance of this duty. I am, &c. LEVI WOODBURY, Secretory of t fie Treasury. To Receivers ok Ptklic Money: Kaskaskid, I/tinois, (March and ,lpril.) Colarnbus. Mississippi. Mount Salus, Miss., (February and March.) Treasury Department, t/^/z/ie 10, 1837. Sir : In consequence of your neglect to render your monthly return, and pay over the public moneys, as required by law and the instructions of the Departnjent, and the further omission to execute your otlicial bonds in perfect form, the President has directed that the sales of public lands within your district be temporarily suspended until your compli- ance with the duties imposed on you, or such other steps as the facts may justify. The register has been instructed accordingly. Under these cir- "cumstancps, I have to rofpiire that a bond be renewed, in the form re- quired by the Connnissioner of the Land Oilice, and that your returns be promptly rendered ; and that the whole amount of public moneys ia your hands be specially deposited to the credit of the Treasurer of the United States, in the Planters' Bank at Natchez, and evidence thereof transmitted here without delay, I am, &c. Receiver of Pirlic Money, Columbus, Mississippi. LEVI WOODBURY, Secretary of t lie Treasury. Rop. No. 313. 187 Receiver's Office, N. E.. Land Office, Columbuft, [Mississippi,) July 24, 1837. Deak Sir: Your cominunicaliou of the 10th Jane ultimo, in conse- quence of my absence, has just been received. From the circumstance of Mr. V. M. Gareschc, who presented to the register and myself his testimonials showing he was authorized by your Department to make particular examination into the affairs of this office, having been here, and my having made to him a full disclosure of its situalion, and of mine in connexion with it, I did not deem it necessary for me to communicate with the Department at present. I had already anticipated the order to suspend, the sale of land at this office, by ceasing to receive any money. So soon as I was ndvised of the defect of my official bond, I authorized Mr. Gare-sche to inform the Department that it was my intention, as soon as I could conveniently, to see my former sureties, (some of whom were distant from liere,) and obtain their signatures to the new bond. I have now obtained the names of all, except one, who was on the bond before forwarded ; and his I have not yet obtained, in consequence of his absence, travelling through the State. So soon, however, as I can learn where he is, I will immediately attend to it. I was anxious to ob- tain the names of those who were on my first bond.) to whom I had made an explanation of my ailairs.) in preference to any others, in order to show to tiie Department that my friends here, and those who knew my business best, still have confidence. The truth is, I am in delault; a circumstance which has orieinated from my reposing too great confidence in otiiers. I am, however, prepared and determined to secure the Gov- ernment against loss, not only by a sufficient bond, but also secure it and my friends by an unconditional surrender of the whole of my property, whenever it may be required. The returns, in arrears, I will make out immediately ; and liope, also, very soon to have it in my power to send the evidences of the deposite of the balance of the public moneys in my hands. It is also my intention, so soon as I can properly arrange these things, to forward my resignation. In the mean time, however, I shall endeavor to properly execute my olFicial duties, or make any further communication whicli may bo required of me. I am, very respect fully, your obedient servant. G. D. BOYD, Receiver: ' Hon. Levi WooBinniv, Secrctarij of the Treasury. Columbus, July 2-1, 1837. I have read the foregoing letter, and have seen the bond to which it re- fers, and find it has all the names which were to the original bond, with the exception of General S. Cocke ; and there are some atlditional names. W.M. DOWSING, Register. 188 Rep. No. 313. Treasury Department, .ditg-ust 8, 1837. Silt : I am happy to hear of the frauk and honorable course proposed in vour letter of the 24th uUimo. It would be convenient to have the bond and resignation arrive here by the early part of September. I am, &.C. LEVI WOODBURY, Secrelanj of Ike Treasury. G, D. Boyd, Receiver of Public Money, Co/ujnbus, Miss. Treasury Department, October 1, 1837. Sir : I have to acknowledge the receipt of your letter of the 23d ultimo, tendering your resignation of the office of receiver of public money at Columbus, Mississippi, and requesting indulgence on the debts due the United States; and I have to inform you, in reply, that your resignation is accepted, to take effect on the 1st day of the present month, and a suc- cessor will be appointed. The district attorney will be instructed to exercise as much indulgence as the public interest will permit, in relation to the adjustment of your concerns. I am, &c. LEVI WOODBURY, Secretary of the Treasury, Gordon D. Boyd, Esq. Receiver of Public Money, Cohcmbus, Miss. Extract from the report of J'. M. Garesche, appointed to exaynine land offices. LAND OFFICE AT COLUMBUS. Columbus, (Miss.,) June 14, 1837 Sib : My labors are at last closed ; my examination terminated on ^j^g instant. I might have, probably, procured the assistance of a clerk but I do not know that the service would have been benefited, either as to economy or despatch. In the first instance, nothing less than five dollars per day would have been accepted, and the assistant would have been, in all probability, deficient in the knowledge recpiircd. In that case my teaching, and the immerous interruptions occasioned by his in- experience, would have made me lose a time which his co-operation on tlio other time would not have made up. My anxiety, too, as to his cor- rectness, would have obliged me to examine his work before assuming the responsibility. I therefore declined ; and, to make up for the services of this neglected aid, I was assiduous at the office from half-past seven in Rep. No. 313. 189 the morning till seven in tiic evening, not even excepting Sundays; al- lowing myself less than one honr for my dinner. I enter into all these details, that, should the result not meet your anticipation, the fault should not be attributed to any negligence on my part ; but I trust my labors will be found satisfactory. The account of the receiver, which I have made out, and transmit herewith, presents against him a balance of $55,965 54, His own ac- count makes it $53,212 73; it is also annexed. His assets, of which I also send you the list, amount to ^61,549 98, rating the land at $1 25 only, but might probably realize double the amount. The man seems really penitent; and I am inclined to think, in common with his friends, that he is honest, and has been led away from his duty, by the example of his predecessor, and a certain looseness in the code of morality, which here does not move in so limited a circle as it does with us at home. Another receiver would probably follow in the footsteps of the two. You will not, therefore, be surprised if I recommend his being retained, in preference to another appointment ; for he has his hands full now, and will not be disposed to speculate any more. He will have his bond signed by the same sureties, and forwarded in a few days to Washington: this speaks favorably. He has, moreover, pledged his word that, if re- tained, he will strictly obey the law, and receive nothing but specie in payment for lands. He tells me that he is about selling a great portion of his lands ; that and some other negotiation will enable him to dis- charge a large portion of his debt to the United States before the expira- tion of the present quarter. Lenity towards him, therefore, might stimu- late him to exertions, which severity might, perhaps, paralyze. I have, in the mean time, enjoined the closing of the land office until the bond is completed and returned. No land has been sold since tlie 29th ultimo. Various are the reports of the late receiver's solvability; some say that he will pay the whole, whilst others, and the greater number, do not believe that he will pay 75 per cent.; hut they all concede that his intem- perance has been his greatest crime, and that the loss of his money has been caused by that of his reason ; and that, as in algebra, the mhius on one side has been made p/us on the other. It is my belief that hi«i forced confidence has been sadly ;i bused. He, too, passes for an honest man. I am, verv respectfully, sir, your obedience servant, V. M. GARESCHE. Hon. Levi Wooddury, Secretary of the Treasury. [G. D. Boyd is indebted fifty thousand nine hundred and thirty-seven dollars and twenty-nine cents, (^50,937 29,) as per last settlement at the Treasury.] List of notes belonging lo G. D. Boyd. James FuUerton, due January 1, 1837 - - - iSSlOO 00 Do. do. 1S3S - - - 200 00 Do. ' do. 1839 - - - 200 00 Joseph Barron, due Marcli 1, 1837 - - - 200 00 Do. due January 1, 1838 - - - 200 00 Si 50 00 150 00 500 00 500 00 500 00 500 00 sOO 00 500 00 250 00 250 00 300 00 .'300 00 250 00 250 00 190 Rep. No. 313. Hoiry Brown, due February 8, 1S3S Do. do. 1S39 Nathan Tims, due February .9, 1838 Do. do. 1839 Do. do. 1810 A. W. Harris, duo January 1, 1S38 Do. do. ' IS 10 Do. pa^•able G. I). B. &: J. Henderson, due 1839. .Sl.OOO— onc-bairis - . . . James While, due January, 1838 - - - - Do. do. 1839 - - - - H. Ford.soii, payable G. D. B. & J. Henderson, due No- vember, 1837, iSsOO— one-half is - - - Do. do. 1S38, i$G00— one-half is AVm. ,due January 1, 1838 - - - - Do. do. 1839 - - - - A. P. Boyd & B. Evans, G. D. Boyd & J. Henderson, due February, 1838, i? 1,200— one-half is - - - (iOO 00 Do. do. due February, 1839, Sl,200 — one- half is ------- Do. do. 1840, g 1,200— one-half is H. B. Scarborojiah, due February, 1837 - Do. ^ ' do. - - - Do. do. - . - H. B. Scarborough, due July, 1837 Do. do. ' 1838 W. B. Youna, four notes, §1,000 each, due July. 1837, 1838, 1S39, 1S40 - - - - ' - Wm. Logan, two notes, $125 each, due July, 1837, 1838 - \V. B. Williams, two notes, S200 each, due January, 1837, 1838 - - - - - - - G. R. Fitter & Richard H. Walker, four notes. Si, 125 each, due October, 1837, 1838. 1839, and 1840 Thos. H. Rogers, two notes, G. J). ]i. & J. Henderson, S500 each, due March, 1838 and 1839 Joseph Ivey, two notes, $250 each, G. D. B. & J. Hender- son, due March, 1838, 1839 — one-half is M. M. Robertson, two notes, $250 each, due April, 1838, - A. Nash, two notes, §250 each, 6500, each due April, 1838, and 18.;; 9 ------ James Vose, endorsed by Clias. S})encc and others, due in Connnercial Bank, Manchester, April, 1838 Wm. Dodd & Allen Dodd, two notes, S200 each, due 1838, and 1839 ---... Andrew Adkinson, three notes, w^800 each, due 1838, 1839, 1810 ---..._ W. B. ii: If. J. Williams, three notes, one J^2,000, due Janu- ary, 1839 : one S2,500,duc January, 1840; one ig3,000,due January, 1840 - Evans, Boyd, & Co., three notes, Sl66 GG each, due yXpril, 1838, 1839, 1810 - . - . . GOO 00 600 00 1,G66 66 1J666 66 1,666 66 250 00 250 00 1,000 00 250 00 400 00 4,500 00 500 00 500 00 500 00 1,000 00 1,000 00 400 00 2,400 00 7,500 00 500 00 Hep. No. 313. 191 J. M. Lilly, three notes, ^166 66 each, due April, 1S3S, 1S39. 1840 - - - - - - 40 500 00 i^-) 3 7, 150 00 About i^l, 000, other good notes, not secured by laud - 1,000 00 ^3 8,1 50 00 I liave, also, say 20,000 acres of land unsold. I owe out of this one debt of J§1,300, which is all I do owe, except some snriall debts. I have- also an interest of half of the profits which may be made out of about 1 5,000 acres more. G. D. BOYD- JuTfE 5, 1837. 7. — Correspondence ivith Lilllcbitri/ Hawkins, receiver at Helena. Treasury Department, Jamiary 30, 1835. Sir : The Department having received no duplicate of the monthly re- turns, required by its regulations, showing the transactions of your office since your appointment, it becomes proper to call your immediate atten- tion to this duty, and to inform you that promptitude and punctuality in this respect, and in the deposite of tlie public money, are to be regarded as paramount duties, and will be insisted on accord iu. No. 313. 193 S. — Correspondence with U. G. Mitchell, receiver at Cahaba. CIRCULAR. TuEAsuRV Department, Februart/ 28, 1835. Sir : It has been intimated to the Department tliat a })ractice prevails at some of the land ofKces of permitting entries and issuing certificates of purchase, without tlie payment of the purcliase-money at the time of the entry. Sucii a practice being unauthorized and highly reprehensi- ble, I have deemed it proper to make known to you, that if it has been tolerated by you, it must immediately cease ; and any repetition of it here- after, coming to the knowledge of the Department, will receive prompt and exemplary notice. I cannot omit the occasion to impress upon you the necessity of a strict attention to, and punctual compliance with, the duties required of you in regard to the prompt deposite of the public moneys, and tranmission of your accoimts and returns ; and to say to you that tlie performance of those duties must be regarded as paramount to all other in your otficial station. I am, &c. LEVI WOODBURY, Secretary of the IVeasury. To Receivers of Pitblic Money at Cahaba, Hunisville, Montgomery , St. Stephen',^, .dui^nsta, Chocchiana, Neiv Orleans, Ouachita, Demopo- lis, Mardisville, Sparta, Tuscaloosa, Coliunbus, Washington, Opelou- sas, ajid St. Helena. Treasury Department, February 4, 1836. Sir: Your returns for the months of October, November, and Decem- ber, liave not been received. I regret that there should be any occa- sion to notice the neglect or accident, (as the case may be,) in this impor- tant duty ; and avail myself of this occasion to inform you that, unless your future returns are received at this Department within the month next succeeding that for which the return is rendered, it will place me under the dissagreeable necessity of reporting the fact to the Executive, in order to comply with the general rule in this class of cases. I am, &c. LEVI WOODBURY, Secretary of the Treasury. To Receivers at Palmyra, Missouri, October, November, and Decem- ber; Edivardsville, Illinois, November and December: Qvincy, Illinois, November and December; Shaxc nee town, Illinois, October, Novrynber, and December ; Cahaba, i^ lab a m-a, November and December ; St. Stc- phen^f, Mabaina, November and December ; Columbus, Mississippi, November and December ; Mount Salus, Mississippi, November and December; Helena, ,(Irkansas, December; Washington, *Irkans(is, De- cember; Zariesville, Ohio, December; Vincenyies, Indiana, December ; Chicago, Illinois, December ; Galena, Illinois, December ; Vandalia, Illinois, Dfcember ; Tuscaloosa, %/Ilabama, December; Jiugusta, Mis- sissippi, December; Chocchuma, Mississippi, December; New Orleans, Ouachita, and St. Helena, Louisiana, December: Green Bay, Michi- gan, December; Batesville, ^drkansas, December. 194 liep. No. .313. Rkceiver's Oftice, Cuhaba, February ly, 1S36. Sir: I received yours ul' the lih instant. The press of business in this oflice has prevented tlie returns to be Ibrwarded as soon as they are required. I wish to know if it would be advisable to suspend the entry of land a few days at a time, in order to forward the returns sooner, 'i'he returns you mention have been forAvarded. I shall spare no pains to comply with the instructions from your Department. RespectfuUv, vour obedient servant, U. G. MITCHELL, /.'. P. M. Hon. Levi Woodjsurv, Secretary of the Treasury. Treasury Department, March 3, 1836. Sir : The suspension of the business of the land oliice, for the purpose of enabUng you to make out your monthly returns, cannot be permitted. As those retin-ns are intended to be mere exhibits of your cash transactions for each month, and are not necessarily subject to the delay of detailed book-entries, 1 can perceive no sulllcient reason for their being withheld longer than the first week in each succeeding month. I am, &:c., LEVI WOODBURY, Secretary of the Treasury. U. G. Mitchell, Esq., Receiver of Public Money, Cahnba. Treasurv Department, November 24, 1836, Sir : Besides the neglect complained of in my letter of the 18th instant, I regret to be obliged to take notice of another, ecjually culpable: it is the omission to deposite the pubHc money at the intervals prescribed in the instructions of the Department. It appears that no deposite has been made by you since 2Sth July last, although the balance on hand on the 31st August amounted to ^02,910^, as shown by your returns of that date. I nuist therefore claim your immediate attention to the subject. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver ok Pcrlic Money, Cahaba, Alabavia. Receiver's Office, Caliaba, December S, 1836. Sik: I received yours of the 24th November. I am truly sorry you think I have neglected my duty about depositing the public moneys; that Hcj). No. 313. 195 is a thing I never have neglected, .sick or well. On the 14th Novemher, 1836, I enclosed you the cashier's receipt, dated 31st October, 1S3(), for ^136,091 3-i, As I wrote you before, the delay of my returns was owing to iny in- disposition : I have just got so I can attend to my office. Respectfully, your obedient servant, U. G. MITCHELL, Ji. P.M. Hon. Levi Woodbukv, Secretary of the Treasury, Waahinglou, I). C. Treasuky Department, cAanjmry 17, 1837. Sill : I enclose a copy of a note submitted to the Department in refer- ence to the conduct of your ftssistant, in charging a discount on moneys received in ])aynieiU for public lands; and have to request that you will furnish the Department with full explanations. I am, &.C. LEVI WOODBURY, Secretary of the Treasury. Receiveu ok PvBi.rc Money, Cahaba. Receiver's Office, Cahaba, February 3, 1837. Siu : I received yours of the 17th ultimo. I am truly sorry that any gentleman should find fault with the gentleman that I intrusted my office to in my illness. I can say to your Department that Mr. Joseph Bab- cock is a gentleman of high standing and respectability ; a man that is hon- est, and correct ni all his dealings ; lie stands as high as any gentleman in this section of country ; and he would scorn to do any act derogatory to a gentleman. I now enclose you Mr. Babcock's sUitement, which 1 hope will be satisfactory to your Department. ResjiectfuUv, your obedient servant. U. G. MITCHELL, /Receiver of Public Moneys. Hon. Levi Woodbury, Secretary of the Treasury, IVashingtoH City. Cahaba, Fetyruary 3, 1837. Dear Sir : At your request, I have to slate, in answer to Mr. Boykin, charged with having received of him paper money in payment for land,, that such was not the fact. Mr. Boykin requested me to take paper ; I told him I could not, btU that he could probably get his money changed in town. He replied that it was a hard case if he had to pay a per cent., and then asked me if I would exchange with him ; I answered that I had specie of my own, unconnected with the public rnoni^y, he could have at the current rates specie was at that lime selling at in town, which was five per cent. He agreed to this arrangement, paid me for 196 Kep. No. 313. the exchange, and the specie was deposited by me for his land.' Now, this is a true history of the transaction witii Mr. Boykin. I used no funds but my own, which, as a free citizen, I contend I have an undoubted right to do. Very respectfully, your obedient servant, JOSEPH BABCOCK. Uriah G. Mitchkli., Esq., Receiver. Treasury Department, Fehrua^^y 18, 1837. Sir: Your letter of the 3d instant is received; in reply to which, I have to observe, that neither you nor any other person in your employ- ment should deal in exchanges, inasmuch as it tends to produce com- plaints, and subjects you to suspicion, however upright your vjews may be. I hope it will not be allowed hereafter. I am, &c. LEVI WOODBURY, Receiver ok Public Money, Secretary of the Treasury. Cahaba, Alabama. Treasury Department, May 25, 1837. Sir : I have to ask your attention to that part of the enclosed circular which relates to the transmission of your monthly returns to this office. I am, &c. LEVI WOODBURY, Secretary of the Treasury. To Receivers of Public Money, .SV. Louis, Palmi/ray Cahaba. New Orteans, Chocchuma. and St. Auiirustine. [Mr. Mitchell, as late receiver at Cahaba, is indebted fifty-four thousand six hundred and twenty-six dollars and fifty-five cents, (J'!5i,626 55.)] 9. — Correspondence ivith Paris Childress^ receiver at St. Helena. Treasury Department, July 18, 1834. Sir : 1 regret to be under the necessity of noticing your omission to make returns for the months of April, May, and June last. By a circular dated the 15t[i of January last, you were advised of the necessity of promptitude in this respect ; it remains that I should again remind you, once for all, that tliis is a duty which must be punctually observed. I am, &c,, LEVI WOODBURY, Secret (/ry of the Treasury. To Receivers at Marietta, Ohio ; f^lticennes, Indiana ; Fort IVayncy Indiana ; Sprinu; field, Illinois ; Fayette, Missotiri ; St. Helena^ Louisiana ; and- St. Stephen^s, Alabama. Rep. No. 313. 197 Receiver's Office, St. Helena, (La.,) ,/2ugxist 15, 1834. Sir: In answer to yours of the 18th ultimo, I furnish yon, herewith, my accounts tor the months of April, May, and June last, showing the transactions in my oliicc. Tlie otiice of register being vacant, no busi- ness was transacted; and I was of opinion that it would not be thought necessary by the Department that I sliould reiterate from month to month the same statement, believing that my quarterly returns would answer every thing fully and satistactorily. I am, sir, very reepectfully, your obedient and humble servant, PARIS CHILDRESS, Receiver, Hon. Lkvi Woodrukv, Seci'etary of the Treasury. CIRCULAR. Treasuky Department, February 28, 1835. Sir : It has been intimated to the Department that a practice prevails at some of the land otlices of permitting entries and issuing certificates of purchase, without the payment of the purchase-money at the time of the entry. Such a practice being unauthorized and highly reprehensible, I have deemed it proper to make known to you that, if it has been tolerated by you, it must immediately cease; and any repetition of it hereafter, coming to the knowledge of the Department, will receive prompt and ex- emplary notice. I cannot omit the occasion to impress upon you the necessity of a strict attention to, and punctual compliance with, the duties required of you in regard to the prompt depositc of the public moneys, and transmission of your accounts and returns; and to say to you that the performance of those duties must be regarded as paramount to all other in your official station. I am, &c. LEVI WOODBURY, Secretary of the Treasury. I'o Receivers of Public Monev at Cahaha, Iluntsville, Monli^orneryj St. Stephen^ s, Auf^usta, Chocckuma, Neio Orleans, Onuchita, De- mopolis, Alardisville, Sparta, Tuscaloosa, Columbus, fVashington^ Opelousas, and St. Helena. Treasury Department, February 4, 1836. Sir : Your returns for the month of December, have not been re- ceived. 1 regret that there should be any occasion to notice the ne- glect or accident, (as the case may be,) in this important duty ; and avail myself of the occasion to inform you that, unless your future re- 198 Rep. No. 313. turns are received at the Department within the month next succeed- ing that fur which the return is rendered, it will place me under the disagrceahle necessitf*ol' reporting the fact to the Executive, in order to comply with the general rule in this class of cases. I am, &c. LEVI WOODBURY, Sccrelin^y t>f Ike Treasury. Paris Childkess, Esq., Receiver at St. flelenu, La. Receiviok's Office, St. Helena, (La.,) March I, 1836. Sir: With this you will receive my account current, aggregate of moneys received, and certificate of deposite for ten thousand dollars ; f>om which it is to be seen there is a balance of two thousand I wo hundred and eighty- two dollars and five ond a hah' cents in hand. Your letter of tlie 4th of February has been received ; and I should regret that any of my acts, for tlie future, should place you under ihe dis- agreeable necessity of informing the Executive of my neglect of duty. 1, like others, am liable to make luistakcs and neglect my duty ; but I be- lieve seldom, in comparison with others. But I shall endeavor, whilst 1 remain in othce, so to act as to clear me from any suspicions relative to punctuality in returns. Yours, respectfully, PARIS CHILDRESS, Receiver. Won. Levi Woodbury, Secretary of tlic Treasury. Treasury Departmeist, Marcti 26, 1836. Sir : Complaints are made to the Department that you do not reside at the land oHic^, and that, in consequencp, it frequently occurs that persons having business at the office are disappointed in seeing you, and obliged to return without being able to acconij)lish their business. You are aware that, by the regulations of the Departmcnr, you are re- quired to reside at the place where the land ofiice is located, while you fill the office of receiver. I must therefore claim your immediate attention to this matter. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver ok Public .VIoney, St. Helena, I^jxtisiana. Receiver's Office, St. Helena, (La.,) ^/ni^ncst 12, 1836. Sir : I have the honor to transmit to you, herewith, my account curren and aggregate statement of moneys, ami certificate of deposite for the month of July; showing a balance of five thousand two hundred and Rep. No. .313. 199 eleven dollars and thirty-eight and a liuli' cents in favor of the United States. I also will advise the Dej^artnient of the fact that I have removed to the office, and sliall never be absent, unless to deposite. Respectfully, yonr obedient servant, PARIS CHILDRESS, Receiver. Hon. Secretary of the Treasury, IVashiiigton city. New Orleans, February 25, 1838. Dear Sir : With this you will receive my account current, aggregate of moneys received, and account with the Treasurer of the United States, which hove been delayed in their transmission by my leaving the office, and there being no mail at Greensburg during the last month. In this I also tender you my resignation as receiver of public moneys, being no longer worthy of the trust ; and, in conclusion, must reconmiend Mr. T. N. Baylies as a gentleman more worthy to fill the vacancy than any one of the present applicants. Respectfully, vour obedient servant, PARIS CHILDRESS. Hon. Levi Woodbury, Secretary of the T/easury, I Washington city. Treasury Department, il^/rcA 19,1838. Sir : Your resignation of the office of receiver of public money at St. Helena has been received and accepted ; and I have to request that the balance of public money in your hands may be placed in the Union Bank, at New Orleans, to the special credit of the Treasurer. I am, sir, very respecttnlly, your obedient servant, LEVI WOODBURY, Secreta?'y of the IVcamry. Paris Childress, Esq., .SV. Helena., La. [Balance due from Paris Childress, twelve thousand four hundred and forty-nine dollars and seventy-six cents, (§12,149 76.)] 10. — Correspondence with M. J. ,'ill.tn, receiver at Tallahassee. Treasury Department, November 15, 1836. Sir : The punctual deposite of the public moneys at slated intervals being enjoined by the requisitions of the Department, it becomes proper to invite your special attention to this dnty, and to require that the amount in your hands be placed to the credit of the Treasurer in one of the deposite banks. To enable you to do so with more convenience, and to save th3 expense of travel, you are authorized to procure a draft on 200 Rep. No. 313. any convenient deposite bank for the funds on hand, and to allow a rea- sonable premiiun for the same. Tiie draft so procured can be sent to the bank on whioh it is drawn, and credited to the Treasurer. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Math. J. Allen, Esq., Receiver of Public Moneys, Tallahassee, Fa. Treasurv Department, February 21, 1837. Sir: I regret to be under the necessity of complaining of your neglect to render your returns for November, December, and January. Your im- mediate attention is requested to the subject. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, Tallahassee, Florida. Tallahassee, March 31, 1837. Sir: Herewith are transmitted my accounts current for the months of January and February, 1S37. I some time since received a communica- tion from you, drawing my attention to the transmission of my returns for November and December of the last year; but, as they had been some time forwarded, I did not think it necessary to answer that communica- tion ; but, upon reflection, I feel uncertain wliether I transmitted io you the monthly returns due your office — indeed, it liad escaped my recollec- tion that they were due you. You will much oblige me by informing me for what months accounts current arc due you, and I will transmit copies of them immediau^ly after its receipt. Very respcctfullv, your obedient servant, MATTHEW J. ALLEN, Receiver, Hon. Levi Woodisury, Secretary of the Treasury. Treasury Department, ^pril 12, 1837. Sir : The monthly returns in arrear from your office are those for Nc- vemVjer and December last, as you have already been informed. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver or Public Money, Tallahassee. Rep. No. 313. 201 Treasury Department, January 13, 1838. Sir : The acting Quartermaster General lias thi.s day coninmnicatcd to me a letter ol" Licutenftnt J. W. McCrabb, dated the 2d instant, which states that you have refused to pay five drafts of §55,000 each, drawn by the Treasurer upon you in favor of Major J. B. IJrant, United States army. If a satisfactory explanation of this refusal shall not be received by return of mail, it will be my imperative duty to lay the case before the President, for his final action upon your breach of official trust, to the great injury of the pubhc service. I am, &c. J.EVI WOODBURY, Secretary of the Treasury. M. J. Allen, Esq., Receiver of Public Money, Tallahassee. Tallahassee, Jf/ni/z/ry 13, 1838. Sir : I write this for the purpose of accounting to you for the fact of my having protested drafts on this office when there were funds in it to the credit of the Treasury. Before the suspension of specie payments, I received the notes of the two banks at this place, with an express understan'&ing with their officers that it was to be considered as a special specie deposite. At the period of suspension at this place, the directors of those banks refused to recog- nise any difierence between myself and their other creditors, on the ground that the officers of the banks were not authorized to make the contract which they did witli mc as receiver. There remains, therefore, in those banks funds belonging to the Treas- ury to the amount of about ^30,000 (unavailable at this time) in specie. This sum is perfectly secure, and will be immediately paid on the resump- tion of specie payments. The banks offered drafts on the North to the holders of those drafts which have been protested, but they refused to receive any thing except the specie. Very respectfully, your obedient servant, MATTHEW J. ALLEN, Receiver. P. S. January 19, 1S3S. — I have just discovered that by neglect this letter was not transmitted when written, and that my commimication of yesterday, in which I refer to it, has preceded it. M. J. ALLEN- TALLAHASSEE, January 18, 1838, Sir: Herewith are transmitted my weekly returns for tjie first audi second weeks of this month. You will perceive that though (for the rea-- sons assigned in my last communication to you) I had been compelled tc protest drafts previously presented for want of specie funds, yet I have paid one, viz : No. 2915 on W\T.r warrant No. 8211, since, for SS,000, on the condition that the deficiency in bank (in specie) should be made upr by future deposites. Said deficiency is ^5,040 12. 14 -202 Rep. No. 313. The balance on hand, §26,895 37], is (as stated in my last) at present luiavailable to the Treasury, but perfectly safe ; a part of the above balance is on hand in cancelled Treasury notes, which will be trans- mitted as directed. Very respectfully, your obedient servant, MATTHEW J. ALLEN, Receiver. lion. Levi WooDHrnv, Secret (wy of the Treasury. Treasury Department, February 2, 1838. Sir: Your letters of the 13th and 18th instant are received. The Depart- ment cannot recognise any such excuse as that assigned in your letter for the failure lo meet its drafts in specie. The receipt of bank notes has been expressly prohibited. It is required that you will put yourself in 'a situation to pay all the money on hand in specie, if desired, by procuring it from the bank or elsewhere, and paying it out in discharge of the drafts drawn on you, if the holders demand if. I shall expect a full and satis- factory reply to this letter, by return of mail, in order that the whole sub- ject may be submitted to the President. ^ I am, &c. LEVI WOODBURY, Secretary of the Trcafiin'y. M. J. Allen, Esq., Receiver of Public Money, Tallahassee, Florida. Tallahassee, January 24, 1838. Sir: I this day received your connnunication of the 13th instant, re- quiring an explanation of the fact of my having refused to pay four drafts of i?5,000 each, drawn on me in favor of J. B. Brant, United States army. I bcsr leave to refer you to my letter of the 13th instant, in which I have fo:plained tlie reasons of my having been compelled to protest the drafts abov^e mentioned. You will please inform me whether my explanation is satisfactory, and what course shall be pursued in regard to the public moneys on deposite, in the banks of this i)lace. I am, very respectfully, your obcdioiu servant, MATTHEW .). ALLEN, Receiver. V. S. When in Washington last sinnmcr, I informed you personally of the situation of those funds. M. J. A. Hon. Levi Woouburv, Secretary of the Trcamry. Rep. No. 313. 203 Treasury Department, February 5, 1838. Sir : Your letter of the 24th ultimo is received. When you told me last summer that you had deposited your funds in one of the banks at Tallahassee, I stated that this Department had given no instructions to that effect, and could not recognise the act. I further stated that you must, through the bank or otherwise, meet the drafts of the Department in funds satisfactory to the holders of our drafts. I can see no other al- ternative consistent with the law. It will be a misfortune if the bank neglect its duty to you, which may justify a little delay; but the most obvious course is, at once to take steps to enforce that duty, or to procure funds elsewhere to discharge your obli- gation to the Government as speedily as possible. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Matthew J. Allen, Esq., Receiver of Public Money, Tallahassee, Florida. Tallahassee, February 21, 1838. Sir: In the belief that you will apply the corrective, I feel it my duty to apprize you of some things which the agents of the Government are -doing in this quarter. Mr. M. J. Allen, receiver of public moneys, is in the practice of exact- ing an exorbitant discount upon the bank-note currency of the country, when offered in payment of public lands. I have before me a memoran- dum of two cases which occurred on the 16th instant. In one of them the discount was fourteen, in the other fifteen per cent.; and tlie gentle- man who gave the memorandum stated to me that he had paid the re- ceiver as much as twenty per cent. You will perceive that the effect of the specie circular is to enrich your office, at the expense of the people. On the bth ultimo, the cashier of the Union I5ank of Florida received from Lieutenant John Williamson a draft of the Treasury of the United States, on the receiver, for eight thousand dollars. The directions of Williamson were, to demand specie, with which to pay the workmen em- ployed in the construction of the arsenal at Mount. Vernon. The receiver had not the specie, and the draft would have gone back protested, but that, on a promise by Allen to refund the specie, the draft was paid by the cashier of the bank. I presimie that the drafts of the Treasurer are pre- dicated upon funds reported to be in the hands of the receiver. It is mat- ter of complaint, that citizens have applied to enter lands, their money was refused, and, after having converted their bank notes into land-office money, upon another application for their land they have found it entered by the receiver or by his clerk, li. R. W. Andrews. It is less than two years since either the receiver or his clerk has been in office. Of the pre- vious pecuniary resources of the first, I have no information ; but I have been informed that the clerk Avas not worth five hundred dollars. On the 12th instant, M. J. Allen subscribed to the new stock of the Union Bank of Florida forty thousand dollars ; and in name of Allen and Andrews, 204 Rep. No. 313. twenty thousand dollars; the subscription to be secured by mortgage of land. Should you deem this couiniuuication worthy of notice, and will com- mission the Surveyor General, or Governor Call, or any person possessing your confidence, to investigate the matter, I will adduce the testimony in proof of what I have written. Very respectfully, JOHN G. GAMBLE. The President of the United States. Tallahassee, March 17, 1838. Sir: Enclosed are answers to the cliarg<3S preferred against me by John G. Gamble, as communicated in yours of the 8th instant. I expect to be in Washington city about the middle of next month, when I will call upon you [and explain] some of the circumstances con- nected with those charges. The cashier of the Union Bank of Florida has told me that he expected a draft in their favor, on me, for the amount of pul)lic funds in their hands. You will please inform me whether this arrangement will be made, that, if other^ase, I may take steps to convert those funds into such as wiU suit the Govermnent, as I wish to pay the whole balance on hand as early as possible. Very respectfully, your obedient servant. M. J. ALLEN. Hon. Levi Woodbury, Secretary of the Treasury. Tallahassee, March 17, 183y. I divide the charges made by Mr. Gamble against .me, as receiver, into three, and will answer theni in the order made. 1. As regards my receiving bank-notes at 15 per cent, discount. — I have, since about the 1st of January last, in a number of instances, (at the earnest request of persons wishing to secure lauds who were unable to obtain the specie.) received the notes of the Union and Central Banks of Florida, and none other, at a discount of 15 per cent., and at no other rate. Before I agreed to do this, the people were giving 20 per cent, for specie, and it was often not to be had at that. I have received nothing but specie or Treasury notes lately; nor shall I again, under any circum- stances. What I have received has been merely for the accommodation of persons desirous of securing land, for I could make nothing by the operation, as it would cost within a fraction of the 15 per cent, to convert Union Bank funds into specie ; and 1 knew I was doing it at my own risk, being bound to the Government for specie. John G. Gamble is pres- ident of tiie Union l>ank, (as, probably, yon know,) and is now charging 8 per cent, for exchange on the North, ai-id the same for Treasury notes, ir> iiis owii obligations. 2. As regards the draft for ^8,000 in favor of J. Williamson. — The statement of Mr. Gamble is substantially correct, and I have refunded the Eep. No. 313. 205 •specie, as promised; but Mr. Gamble fo)\qot to tell you lliat the Union Bank had more than that amount of my funds in its hands, at that time, which he chose to call notes, contrary to justice and honor. 3. The charge that persons have applied to enter lands, their money been refused, and the land subsequently entered by myself or Mr. An- drews, is wholly false, and I defy the evidence. Mr. Andrews is not my clerk, as Mr. Gamble very well knov/s; he is the clerk of Mr. Hackley, the register. I am attending to the duties of my own office. When away last sunnuer, Mr. Robert 15, Copeland was my agent. The Union Bank has lately bought out the Central Bank of Florida; so that the amount in that bank, to my credit as receiver, is now due from ihe Union Bank. M. J. ALLEN, Receiver. Hon. Levi WoomuiRY, Secretary of Ihe Treasury. P. S. I invite the fullest and promptest investigation into my conduct as receiver, conscious that if I have erred, it has been through no improper motive. M. J. ALLEN. Tallahassee, ^^pi-il 13, 1838. Sir : I have just received yours of the 2d current, saying it ia proper I should submit such proof as may be in my power in support of the charges made against M. J. Allen, in my letter of the 21st of February last, ad- dressed to the President of the United States. Believing that you would direct an inquiry to be made here by some gentleman possessing the confidence of the Department, and that Mr. Al- len and the witnesses would be brought face to face, I have not deemed it necessary to obtain certificates to prove the charges. Indeed, I did not suppose they would be desired. Nor does your letter suggest a denial of any other than the charge in relation to the entry of lands which have been applied for by others. The gentlemen whose names are associated with that charge reside more than sixty miles from this city. I v/ill v/rite to them this day to furnish the proof you ask ; but the great irregularity of the mails may prevent a receipt of their answer for some weeks. But, although you memion a denial of one charge only, your letter asks proof of " that and the other charges." I have accordingly written to the parties, (who I know did pay the discount on bank paper mentioned in my letter to the President,) for their written statements. They, however, reside some seventy miles from Tallahassee, in an opposite direction. I presume, however, that when Mr, Allen reaches Washington, he will not deny the practice of which he is charged, and that the dekiy of proof will be immaterial. In support of the other two facts mentioned in my letter to the Presi- dent, I have a certificate of the cashier of the Union Bank of Florida. I must here apprize you that, in practice, the two offices of register and receiver are virtually blended in one. The register, a most excellent and ■deserving man', had employed, as his clerk in the office, II, R, VV, An- -drews, to attoid to the duties of the office. The receiver, Mr. Allen, sub- 206 Kep. No. 313. sequently employed the same Andrews as his clerk. Almost all of the business of both offices is done by this clerk. Eoth offices arc kept in the same room ; and, in practice, the check intended by law in the establish- ment of the two offices is nseless. I am sure that the register is unaware of the impropriety of the course, and that he will a])[ ly a corrective upon your giving him a hint to that effect. In conclusion, I will say that my action in this matter has been dictated by a sense of duty — a duty to be performed by some one, although un- pleasant. With IVIr. Allen I have never had an unkind word, nor have I had towards him an unkind feeling. Very respectfully, Hon. Levi Woodbury, Secretary of the Treasurr/. JOHN G. GAMBLE. Union Bank of Florida, Tallahassee, %fipril 14, 1838. I hereby certify that the statement made by John G. Gamble, in his let- ter of the 21st of February last, addressed to the President of the United States, in relation to the draft of the Treasury Department in favor of Lieutenant John Williamson on M. J. Allen, receiver of public moneys, for eight thousand dollars, is a true statement. I also certify, that, as stated in said letter, M. J. Allen did, on the 12th of February last, subscribe, in his own name, for four hundred shares (or ^40,000) of the stock of this bank, and in the name of Allen & Andrews two hundred shares ; making, together, a subscription of S60,000. I also certify that since that time H. R. W. Andrews, the clerk and- partner of said Allen, has subscribed for ^3,000 more of said stock. JOHN PARKHH.L, Cashier. Tallahassee, *.^pril IS, 1838. Sir: Since the date of mine of 13th current, I have seen one of the gentlemen to whom I liad been referred for proof " that, after refusing the money of applicants for land, the receiver liad entered the same land himself;" and I find that my informant liad misapprehended the tacts of tlie case. The information was given in so positive a manner that I did not doubt its truth. But as there has certainly been mistake in one case, there may be mistake in the others ; and I feel it my duty at once to ap- prize you of it, that Mr. Allen may not sufler from any untrue charge. The other charges, I understand, are not denied by him. Very respectfully, JOHN G. GAMBLE. Hon. Levi Woodhury, Secretary of the Treasury. Eep. No. 313. 20T Treasury Department, «/^/;n7 2, 1838. Sir: Vour letter of 17th ultimo is rcceivecl, and Mr. Gamble has this day been written to, requesting him to lor ward any evidence in his power in support of his charges, and especially the third, which you deny, and which is very material. When the evidence is received, the President will decide on the whole subject. I imderstand that the bank has made an engagement to pay here §10,000 on your account. If they pay more, it will be credited. I trust that the drafts heretofore drawn on you will be promptly paid. In the mean time, it is desirable to get all your accounts arranged, as the De- partment cannot consent to your leaving Tallahassee till the subject is adjusted. 1 am, respectfully, your obedient servant, LEVI WOODBURY, Receiver of Public Money, Secretary of the Treasury, Tallahassee, Florida. Washington, April 19, 1838. Sir : Enclosed are two statements : one made by H. R. W. Andrews^- and attested by R. J. Hackley, (the register at Tallahassee,) going to dis- prove the third charge of Mr. Gamble ; and one from H. R. W. Andrews, showing that my receiving bank notes at 15 per cent, discount was a re- lief to the people of 5 per cent., instead of being oppressive, as charged by Mr. Gamble. You will perceive, by reference to the statement made below, (which you will find correct,) that I have, since the 16th of December, 1837, (be- sides disbursing all receipts,) reduced the balance in my hands subject to draft g27,893 17i, leaving the balance now subject to draft $22,059. I enclose, also, a note from Mr. Thomas, cashier of the Bank of the Metropolis, which I hope will be satisfactory as to the amount to my credit in the Union Bank of Florida, which will be $18,365, after deducting the- amount of a draft on me (^1,950) in fovor of Colonel Downing, which was yesterday sent to them by Mr. Thomas, and die amount hi my hands (stated below) will be reduced to §20,109. I avail myself of this opportmiity to state that i did not leave Tallahas- see on account of the charges preferred against me, but to transact im- portant business in New York, which required my personal presence. 1 shall return to Tallahassee next month. Very respectfully, your obedient servant, M. J. ALLEN, Receiver. Hon. Levi Woodhury, Secretary of the Treasury. Statement referred to above. Balance subject to draft December 16, ISSt - ■ 4549,952 \li Balance subject to draft March 1, 1838 - - - 22,059 00 Reduction - - - |!27,893 17i Amount received by me since I have been in olTice, to March 31, 1S3S ----- $179,844 294 M. J. ALLEN. •208 Kep. No. 313. Tallahassee, t,ipril 5, 1838. Sir: I am informccl, tliroiigh ilic receiver of this place, that charges liave been prelerred by John G. Gamble, Esq., against his ottlcial con- duct ; also implicating myself in the following manner : " It is matter of complaint that citizens have applied to enter lands; their money was refused; and, after having converted their bank-notes hito land-olfice money, upon another application for land they have found it entered by the receiver, or by his clerk, H. R. W. Andrevvs." This charge is incor- rect ; if such complaints have been made, they were without any found- ation whatever. I have been engaged as clerk for the register for the last two years, during which time I have made several entries in my own name, and in company with M. J. Allen ; but in no instance has either of us entered land that had been applied for, although applications were made almost daily for land without the applicants completing their en- tries. The course pursued in the register's oliice in regard to the issuing of applications, is to issue only one application for the same piece of land on the same day ; should the applicant fail to complete the entry before nine o'clock the next morning, then the same land is subject to be entered by any other person. During the time I have been in the register's office, no person has been refused an application for land subject to entry in proper time. I conceive Dr. Allen or myself have a right to enter the same land. Although cases of this kind occur almost daily, we, or either of us, have, in no instance, interfered with applicants in this manner. The Tallahassee bank bills were received in payment for land, and rec- ognised as specie, according to a distinct understanding between the re- ceiver and the officers of both banks, (as I was informed by the receiver prior and subsequent to the suspension of specie payments,) until about the 5th or 10th of May last, at which time the Union Bank of Florida suspended specie payment; and Mr. R. B. Copeland, who was then clerk for the receiver during his absence to Mobile for the purpose of making a deposite, received the Union Bank bills at par for a few days after its suspension. Mr. J. G. Gamble's charge must apply subsequent to tb.e Union Bank's su.spension, as the exchange of money was unnecessary before. By ref- erence to the returns at the General Land Office from this district, which have been forwarded up to the 1st instant, you will not find an acre of land entered by M. J. Allen and myself jointly, or by me individually, or by myself and any other person. And I defy the world to say with truth that I have, in any mamier, entered land in my own name, in company whh any person or persons, procured or permitted any person or persons whatsoever to enter land for me, or purchased land from any person, since the suspension by the Union Bank. On examination of the entries, during the same period, I find M. J. Allen has entered only one quarter section, which will be found by reference to No. 7361. That kind has not been applied for by any other .person for the last eighteen months, to my knowledge. Very respeetfullv, your obedient servant. If. R. W. ANDREWS. Hon. Levi ^VooDn^I{v, Secretary of the Treuaiirij. I certify that the statements herein made are correct. R. J. HACKLEY, Register, liep. No. 313. 209 Tallahassee, April 5, 1838. I certify that I am engaged in the land office at this place, as clerk for R. J. Hockley, register, (the receiver's office being kept in the same roon:i;) that Dr. M. J, Allen, receiver, commenced taking the notes of Ihe Talla- hassee baidvs during the last winter, since their suspension of specie pay- ment,) at the earnest request of persons wishing to secure lands; and that he never took said bills, or any other bank notes, at any other rate than fifteen per cent, discount, to the best of my knowledge. I further certify, that his doing so was, in my opinion, an important accommodation to the people, as it not only saved them the trouble of running about to obtain specie, but also reduced the premium five per cent., as twenty per cent., to my knowledge, was the usual price demanded and paid for specie to enter land prior thereto ; and that since the receiver has ceased to take any thing but specie or Treasury notes, twenty per cent, has been given, to my certain knowledge, for the latter, in the currency of the country, for the purpose of entering land. H. R. W. ANDREWS. Bank of the JMetropolis, April 19, 1838. I have between ^18,000 and ^20,000 to collect on the Government, for the Union Bank of Florida. When these collections are made, I will take in payment the Government draft on the receiver of public moneys at Tallahassee. GEORGE THOMAS, Cashier. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, April 21, 1838. Sir : I have received your letter of the 19th instant, with its enclosures, and will submit the explanations therein made to the President, with those you may offer on the other point, as soon as they are received. It is hoped you will return to the laud office and attend to the subject as early as possible. I shall notify Mr. Thomas to-day, that, relying on his note, the Department will suspend drawing for the amount he is to pay until the appropriation bills pass, and the payment can be closed here. I am, verv respectfully, your obedient servant, LEVI WOODBURY, Secretary of the Treasury. M. J. Allen, Receiver of Public Money, now in JVashington. April 25, 1S3S. Sir : I have received your letter of the 21st instant, and would ask to what other point (requiring explanation) you refer therein; as I am under the impression that I have answered to all the charges of Mr. Gamble, except his statement concerning my subscription to the new stock of the Union Bank, which, being entirely a private concern, I have not noticed. 210 Bep. No. 313. Our delegate from Florida, (Colonel Downing,) after examining all the papers, expresses himself dissatisfied with my course only on the point of my having received the 15 per cent, discount, though he acknowledges his belief that this was done for the benefit of the people, and tliat it was a saving to them; and I now conscienfiuushj aver the same, and aver tliat it did relieve them to the amount of 5 per cent., besides saving them trouble ; which facts you will find proven by others, by reference to the papers enclosed to you in my letter of the 1 9th instant ; and I can pro- cure further testimony to the same purpose, if deemed necessary. As evidence of gain not being my object, I told our delegate (as I did the people at the time of making their entries) that I would return the 15 per cent, on ihcir payment to me of Government funds in any reason- able time; which, I repeat now to you, I am perfectly willing and ready to do in every case. I will return to the land office as soon as practi- cable, which will be at an early date. In your letter of the 2d instant,, (of which I have received a copy,) you say it would be desirable that all my accounts should be arranged. By reference to the officers to whom I made my returns, you will find that my accounts and returns were all transmitted up to the 1st histant, before I left Tallahassee. Any communication you may have to make me prior to the 10th of May, your will please direct to me at Baltimore. Very respectfully, your obedient servant, M. J. ALLEN, Receiver at Tallahassee, Florida. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, May 1, 1838. Sir: Your letter of tlie 25th ultimo is received ; hi answer to which, I have to inform you that the charge as to entering lands is yet pending for further evidence in its support, and for rebutting proof. When that is receivetl from Tallahassee, I shall lay the v/hole subject before the President. I am, very respectfully, your obedient servant, LEVI WOODBURY, M. J. Allen, Esq., Mallimore. Secretary of the Treasury. Tallahassee, May 21, 1838. Sir: I addressed you on the 18th ultimo ; and as I have no acknowl- edgment of its receipt, I enclose a copy. I am yet without answers to letters to persons to whom I was referred for testimony. This may be in consequence of irregular mails, or of Indian disturbances; or it may be that the parties had said more on the subject, vcr/)atly, than they could vouch under their hands ; and I am inclined to think this latter is the true cause of silence. I need not say that my original letter, preferring charges against the receiver, was written from a sense of duty, and in the firm belief of the Rep. No. 313. 211 truth of every charge stated. I had heard cliarges made that lands were falsely marked on maps in the register's oliice as having been entered, which were not in fact entered, but, after applications by other parties had shown their value, that these lands icere or would he entered by Al- len, or his partner Andrews, who is the dc))uty of the register. But I was not intbrmed of the parlies who could testify on this point, and therefore said nothing about it. You will find evidence on this point in the letters of Major Jesse Coe and General Searcy ; and in the letter of Colonel Jacob Robinson you will see that entries made by the receiver, under the belief that the lands were valuable, were cancelled when found to be worthless. There are many complaints for conduct such as that stated in the letter of Jesse H. Willis, Esq. I have not thought it necessary to obtahi any other certificates than that of John Miller to prove the charge of extorting a high premium for entries of land paid for in the current bank-notes of the country. I do not learn that the charge, hi numerous instances, and to a large amount, is denied by Dr. Allen. Before this letter can reach your hands, business will carry me from the Territory, on my way to Europe. It is my intention to wait upon you as I pass through the city of Washington. Very respectfully, Hon. Levi Woodbury, JOHN G. GAMBLE. Secretary of the Treasury. I do hereby certify, that in the month of February last I applied ta enter land, at the United States land office in Tallahassee, and, not having the specie, I paid the receiver a premium of 14 per cent, above the Gov- ernment price, for the land applied for. And on same day I saw T. T, Clarady pay the receiver a premium of 15 per cent, for land entered by him. In both cases, the payment Avas made in the notes of the Union Bank of Florida. Given under my hand this 7th day of May, 1838. JOHN MILLER. Rock Comfort, ./Ipril 2Q, 183S. Dear Sir: At the time yours of the 13th instant reached me, I was just starting to my plantation on the river. Since my return home, I have embraced the first opportunity of giving you the information you asked for. Some time in the fall of 1836 I called at the land office in Tallahassee, in company with General Searcy, who pointed out, on the map, a frac- tion on Appalachicola river that seemed to be vacant, and was told that it was applied for, and would be reserved for the applicant till the next day. The next day I called again, with General Searcy, who desired to know whether the fraction had been entered, and was told by the re- ceiver that it was, and that he was making out the certificate — I think it Avas for himself I remain yours, with great respect, JESSE COE. Col. John G. Gamble. 212 Hep. No. 313. Tallahassee, Maij 19, 1S38. Dear Sir : In answer to yours of the 7th instant, I will state, that about the 18th November, 1836, ISIajor Coe and myself concluded to en- ter some land on the Appalachicola river and vicinity, for which we made application at the register's otlice, and obtained it. We saw other lots that we wished to enter, marked thus (S) in pencil, which we were in- formed had been entered. We said no more, but left the office. Next morning, precisely at nine o'clock, we called at the office. I asked Mr. Andrews (the deputy) to let me see the receiver's receipts for certain tracts marked as above stated : for some, he exhibited the receipts ; for the rest, he said that he had none. Dr. Allen (the receiver) was sitting at a table writing, and observed that he was then making them out, as he was the enterer, and had omitted to do so. I observed that he was too late, and that I or we were applicants for the land. The deputy register said that he did not know what to do, but that it had best be left to the register when he came. I then informed him that 1 then apphed for all the vacant land in the Territory, from day to day, until it suited my con- venience to take it out, and that I should contend for the laud. The register rode up at this lime ; the matter was referred to him, and he gave it in our favor. This I believe to be substantially the occurrence alluded to hy you. Verv respectfully, your obedient servant, J. G. SEAUCY. Col. J. G. Gamble. Makianna, ^/Jpril 19, 1838. Dear Sir : Yonr note of the 13th instant came to hand, inquiring the conduct of the land oliicers towards me. When there tlie time before last, I carried on specie for Dr. Wilson to clear a piece of land ; was warned not to designate the tract until ready to clear it, if not taken. In going to the office, John R. Chapman walked with me to ascertain two eighths he wanted, but had to exchange Union money before he could take them. I advised him not to designate, but merely to cast his eye over the map, and point at different Uuids. He did so. Finding what he wanted was not taken, he inquired of Dr. Allen where he could get specie or Treasury notes ; he was answered they could be had of him at 15 or 20 per cent., (which amount I do not distinctly recollect ;) but 1 advised him to try elsewhere. He hiquired at the bank, butnono were there. He was told 5 per centum was the diflcrence of exchange ; but I believe he gave one of the former amounts, to save the land. While in the office, discovering such a watchfulness in certain persons, I asked to look at a map, where I knew real estate lay that woidd stick to the owner ; it was readily shown ; near it, on two sides of it, lands had been entered — I knew in one of the cases, by mistake. I put my pencil on ten or a dozen pieces, expressing some astonishment that such lands should be so long passed over, remarking that I had not entered the land for market, but for a set- tlement ; l)Ut when my new stock was available, I would likely call. Chapman came up, remarking, the owners of the adjoining lands must share in that. I bound him in honor not to interfere with what I had marked; he wanted me to specify a time he should be bound to wait; I stated, when the banks resumed specie payments, as I could not pay 15 Rep. No. 313. 213 or 20 per centum. We passed off; in about an hour we called to clear liis two pieces, and found, as he stated to me, three pieces of what I had noticed taken, scattered tln'ough my selection ; in examining, I found the northeast of section 28 taken by Ur. Allen, in the midst of my settlement. I thought I had purchased the west half of it in the sales, but was mista- ken. 1 explained the mistake to Dr. Allen in the presence of Major Hackley. Me (Allen) asked me 100 per cent. I oflered him .^100; he at first refused, but Major Hackley came out so strong that ho finally ac- ceded to my ofi'er. Hackley stated that he, as rciri.ster, was blamed with speculation in his oflice, while he had stood aloof, but that Allen and An- drews were speculating to the disadvantage of the old settlers; and that, although Governor Call had stated they had a right, he Thought it im- proper, having before them the maps and books : the piece I got of him at 1^300 ; the papers had not been sent on. Ciiapman further states that the pieces marked "cleared," were abandoned. I told the joke to Captain Mooring, and the fellow, no doubt, got wind of a trick, and drew otf. Yours, very rcspecirullv, JACOB ROBINSON. Col. J. (t. (iAMBLE. P. S. It is hoped the directory will give to this section an hidependent sutlicienl branch to do the business of this country this fall ; I am per- suaded it will be to the interest of the institution. Tallahassee, May 15, 1838. Dear Sir : In reply to your inquiries on the subject of a transaction which occurred at the land oflice in this place, between Dr. Allen, the receiver, and myself, about the latter part of February last, I will state, first, that I do not desire to be an accuser of that gentleman, yet I cannot deny to you a statement of trie facts you allude to. My friend, Cieneral John G, Chapman of Maryland, had visited this country for the ])urpose of making a planting establishment. He had examined several tracts of land, and had reports of many others that were f >r sale ; one of which, belonging to Mr. Keith, lying on the Chupoln river, Ave thought from de- scription would suit him. ile had confided very much to my judgment and advice in the selecti(^n he contemplated making, and, being anxious to return home, he left it to me to examine Mr. Keith's land and report on it, wMiich, if done favorably, it was to be considered a purchase be- tween Mr. Keith and himself, all other parts of the bargain having been fully concluded between General Chapman and Mr. Keith. At the time it was convenient for me to go and look at the land, I called on Mr. Keith, then in Tallahassee, to obtain a description of the sections and townships. From his papers I made a small rough map with my pencil, of the land sections 26, 27, 34, and 35, in all of wiiich Mr. Keith's tract run ; marking upon the southwest quarter of 27 that it was "• vacant," as Mr. Keith in- formed me. I then went to the land oflice, (for the receiver's and regis- ter's offices are kept in the same room,) and asked Dr. Allen to get Mr. Andrews, the clerk of the register, to have me a perfect map made out of the township in which this land was situated, (which service he was in the habit of rendering to all who desired it,) denoting the entered and va- 214 «cp. No. 313. cant land, and to have it done by the next day, leaving, at the same time, the ''rough map," which I had made from Mr. Keith's description of the land, npon whicii was written in fnll, in lead pencil, on the sonthwest quarter of section 27, the word "vacant ;" which I had done because Mr. Keith informed me that it was vacant, and was highly essential to the tract, and ought to be entered by General Chapman if he jnirchased,and, if not, he intended to enter it himself. These remarks of Mr. Keith was tjie reason why I so particularly designated this piece by the word " va- cant," in pencil. When I called at the land office next afternoon to get the map ordered to be made out, (L. A. Thompson was with me, by acci- dent, and witnessed what occurred between Doctor Allen and myself,) it was lianded to me, with the '-'rough map" I had left. I observed on the one made for me that the southwest quarter of 27 was marked as entered. I remarked to Doctor Allen that there was an error ; that this piece was vacant. He replied, that he expected the map was correct. I replied again tliat it was not, for I had examined the land office the day before, w'lien I ordered the map made out, and it was then vacant, and, unless since entered, there must be a mistake. He hemmed and hawed, and finally acknowledged that he had entered it. My lirst impressions, you may imagine, were not of a very pacific character. I felt indignant, and did not hesitate to so express myself. Here some altercation in words took place, which confused the Doctor some little. He, however, made the remark, that if General Chapman wanted the land, he should still have it. Without reply, I left Doctor Allen, and with Mr. Thompson, who wit- nessed all that took place, I consulted, with regard to the matter. It was agreed that, as (if General Chapman did not take Mr. Keith's land) Mr. Keith's interests would be prejudiced, it would be better to make him -acquainted with wliat had occurred. This I did ; and, upon consultation with that i?entleman, determined to wrest the land from Dr. Allen without conditions. I therefore prepared myself with ^200 in specie, and went to him with a deed, prepared by Mr. Thompson, to pay for and obtain a transfer of the land. He received the money, but, instead of signing the deed, altered the entry in his book, and gave me the usual land-office re- ceipts in my own name. In twenty minutes after, I deeded it to Mr. Keith, with the understanding that, if General Chapman wanted his land, this piece was lo be transferred at cost. My impressions are, that Doctor Allen took advantage of my leaving the rough map with him, having upon it the word " vacant," written in pencil ; and I came to this conclu- sion from having had repeated complaints of similar conduct in his office. I am, very respectfullv, your obedient servant, JESSE H. WILLIS. ('ol. John (i. Gamiu-k. Treasukv Department, Jxine 23, 1838. Sir: Copies of letters from John G. Gamble and John C McGehec are herewith enclosed; and ! have to request that you will furnish such ex- ])lanations and further evidence as it may be in your power to offer, as well in relation to the charge of Mr. McGehee as to the former complaints preferred by Colonel Gamble, at an early day. I am, very respectfullv, your obedient servant, LEVI WOODBURY, Matphkw J. Ar.r.F.N, Esq., Sccrclary of the Treasury. Receiver of Fublic Money, TdUahaasee, Florida. Eep. TsTo. 313. 215 Washington City, June 21, 1838. Sir: I have not been so fortunate as to lind you at home, or disengaged when I called at the Department, and I am obliged to pioceed immediate- ly to New York. The enclosed letter from Judge McGehee, in relation to the conduct of the agents of the landollice, was received, undercover, last evening; and is handed over to be placed with those previously forwarded. My letter of ISth April advised that I had been misinformed of the facts in relation to one of the charges made against Mr. Allen in my letter of 21st February. All the other charges, I presume, are admitted by Mr. Allen; and, if denied, are proved by tlie evidence forwarded. I repeat what I said in my letter of the ISth April, that I volunteered in this busi- ness from a sense of public duty, which must be performed by someone. I had no personal cause of complaint, and no private grief to urge me to the course: nor did I anticipate that I should have had devolved on me the trouble of hunting up the evidence in support of the charges. I thought the investigation would have been made in Florida, where Mr. Allen and the witnesses would have met face to face. Andrews continues to be the representative of Allen in tlie ofMce of receiver. He is still clerk of the register. The two offices are kept in the same room ; and, in practice, are no longer checks upon each other. Respectfully, JOHN G. GAMBLE. Hon. Levi Woodbuky, Secretary of the Treasury. HicKSTOvvN, May II, 1838. Dear Sir : I have just received your letter of the 8th, in relation to the charges against the agents of the land olfice in Tallahassee, and request- ing me to state what I know in relation to the entry of Mr. Wallace's land. I will do so, as nearly as 1 can recollect. I think near two years ago, Mr. Wallace, who had purchased an im- provement, placed money in the hands of a Mr. Perry to enter an eighth of land for iiim. Perry applied, with the numbers and other description of the land, at the register's otiice, and (as Mr. Wallace said) was told that there was not time then to prepare tlie papers, but that if he would apply in the morning, his business should be attended to ; he accordingly applied the following day, and was then told by Mr. Andrews, the regis- ter's clerk, that he had entered that land himself. Some short time afterwards Mr. Wallace applied to me to inquire into it while at Tallahassee, (for I was then on my way.) 1 called at the register's office, and a])plied to enter the same land, and was promptly told that the land had been entered by Mr. Andrews, the register's clerk. I then asked him some questions in relation to the entry, when he made it, and who hiformed him of the land, &c. ; and became convinced, from his answers, that all was not right, and gave him notice that I would con- tinue the investigation until I could be fully satisfied. I immediately in- formed Mr. Hackloy of what had occurred, and my suspicions of his clerk. He promised that it should innnediately be looked, into. I set out in a few minutes after this lor St. Mark's, and returned the next day, 216 Rep. No. 313. when Mr. Hackley informed mo that it was a mistake of Mr. Andrews ; that it was rectified, and that Mr. Wallace had the land. Hero the mat- ter ended. I have no reason to suppose that Mr. Hackley knew any thing of this matter until I informed lihn, and believe lie had it corrected. I am, very respectfully, &c. JOHN C McGEHEE. Colonel John O. Gamblk Rkceiver's Office, Tallaha.ssce, Ju /y 1 2 , 1 S 38. Sin: In your connnnnication of tlie 2.3d ultimo, enclosing copies of letters from John G. Gamble and John C. McGeliee, you request mo to submit sucii explanations and further evidence as I may be able, with regard to the charge of Mr. McGehee, as also of the former complaints of Colonel Gamble. As regards the former, the letter of Mr. McGehee does not even mention my name ; and the transactions spoken of by him (according to the dates given by himself) transpired before I entered the land office, viz: in May, 1836. You will find, by reference to my re- turns, that I did not commence the duties of receiver till the 12th of August, 1S3(>: however, I know nothing concerning it, except that Mr, Andrews says the case is mistaken. With regard to the charges of Colonel Gamble, I believe I have answered them all in my former com- munications, (fo which I refer you,) except his statements concerning my subscription to the Union Bank, which, being entirely a private matter, I presumed needed none. I will, however, state the circumstances con- nected with that transaction. The Union Bank, having determined to increase her capital 552,000,000, invited subscriptions to the new stock, to be secured by mortgage on real estate and negroes. At the time I sub- scribed, the subscriptions aniounted to about $9,000,000, (more than four times the amount to be divided among the subscribers-,) therefore, to get what yon wanied, you were obliged to subscribe four times that^amoimt. I desired, at that time, to put some lands which I had purchased (at Government price) into the bank ; the unimproved lands were usually appraised at from five to ten dollars per acre, and the bank was to pay out two-thirds of the valuation to the subscribers. I subscribed, through mistake, one day after the time limited, and my subscription was, on that account, thrown out. I have not a dollar of stock in the bank. I am^ fearful this will be tedious to you; but I could not tell what further evi- dence you desired, except you referred to this subject. In conclusion, I will notice an assertion of Colonel Gambl(\ in his letter of the 21st ulti)no, viz: "that Mr. H. R. W. Andrews slill continues representative of Allen in the office of receiver." This is proved wholly false by the enclosed statement of Mr. R. B. Copeland, and I cannot con- ceive how Colonel Gamble should be unacquainted with its falsehood ; and I now assert (what J have before stated) that Mr. Andrews never has acted as my clerk, but that, when absent from the office, I have uni- formly employed Mr. Copeland as my clerk and agent. " I am respectfully, your obedient servant, M. J. ALLEN, Rcceioer, S^-c. Hon. Lkvi Woodbury, Secretary of the Treasury. Rep. No. 313. 217 Tallahassee, July 12, 1S38. 1 certify that 1 have been acthig as clerk to the receiver at this place since tlie Gth of April last; which fact is well kiiowti in Tallahassee, and especially at the Union Bank of Florida, of which John G. Gamble is president, and where I have made special deposites of what specie I have received since the date aforesaid, to the credit of M. J. Allen, receiver. R. B. COPELAND. Reci:ivek's Office, Tallahassee, July 23, 1S38. Sir : There remains of the amount I had deposited (as receiver) in the Union Bank of Florida (at the time of their suspension of specie payments) the sum of ;S12,414 63 ; which, relying on your letter of the 21st of April, I beg leave to request you will draw for, through George Thomas, Esq., cashier of the Bank of the Metropolis, according to the purport of the letter above alluded to, and the note of Mr. Thomas addressed to you on the 19th of April last ; and 1 would bo pleased that that were doneimme- diately, that that matter might be closed. -The Treasurer has overdrawn the specie on hand, as shown by my last weekly return, by upwards of i5 3,000 ; in consequence, I presume, of not knowing of the arrangement above alluded to, and my weekly returns of specie subject to draft including that sum in the Union Bank, viz : ^12,414 63. Your attention to this subject will greatly oblige me. I am, very respectfully, sir. vour obedient servant, M. J. ALLEN, Receiver. Hon. Levi Wooduury, Secretary of the Treasury fVashington city. Treasury Department, -■^j/^^mY 4, 1838. Sir : You are informed, in reply to your letter of the 23d ultimo, that all was drawn on the bank which Mr. Thomas was disposed to pay ; and that no unsettled alTairs of the bank exist here. The bank at Tallahassee knows and can inl'orm you of the details. The Treasurer has been di- rected not to overdraw at any time; and it is hoped that his drafts will be promptly met by you. I am, very respectfullv, vourobedient servant, LEVI WOODBURY, M. J. Allen, Esq., Secretary of the Treasury. Receiver of Public Moiuys, Tallahassee, Florida. Treasury Department, February 10, 1794. Sir : The enclosed letter of the 27th of last nionth, from the collector of Tappahamiock, relates to a subject equally delicate and disagreeable. It is my duty to add, that bills have returned protested to the amount of 3,000 dollars. 15 218 Eep. No. 313. This conduct, though I trust proceeding iVoni no ill motive in the col- leetor, is ol" a nature so fatal to the punctual collection oi' the revenue, and at the same time so vitally injurious to the public credit, that I cannot forbear to submit it as my ojiinion that tlie public good requires the super- seding of the officer. With perfect respect, &c., ALEXANDER HAMILTON. To the PRKsiDENr of the United States. Treasury Department, June 16, 1794. Sir : It is with regret 1 inform you that another collector has suffered Treasury drafts to return unpaid, which were drawn upon moneys re- ported by him to be in liis hands — Abraham Archer, Esq., of Yorktown. Enclosed are letters of apology on the subject. All the drafts which were at first declined were afterwards paid. I perceive nothing substantially to distinguish this case from that of the collector of Tappahannock. who was lately superseded on a similar ac- count. Nor can I forbear, however painful the task, to submit it as my opinion, in this as in that case, that the good of the public service requires a displacement of the officer. Punctuality in this respect is too indispen- sable not to be made the invariable condition of continuance in office. With perfect respect, &c. ALEXANDER HAMILTON. To the PRiisiDENT of the United States. Treasury Department, February 18, 1795. The -Secretary ot the Treasury has the honor respectfully to submit to the President of the United States certain documents, by which it appears that John Muir, collector for the district of Vienna, in Maryland, has neg- lected his duty in failing to collect, or to institute in season suits for the recovery of, bonds for duties due to the United States. The collector has moreover failed to pay certain drafts, drawn on him by the Treasurer of the United States, for moneys appearing, by returns to the Treasury, to be on hand ; and in this respect lie is found to be in the same predicament as tiie collector of York and Tappahannock who were superseded. The Secretary is firmly of o])inion that the good of the public service re(juires that this ollicer should be displaced ; and, from inquiries which he has made of Mr. Murray, of the House of Representatives, he is in- duced to believe that James Frazier is a fit character to succeed to the- office. AH wliich is most respectfully submitted. OLIVER WOLCOTT, Secretary of the Treasury. To the President of the Ujiited States. [Mr. Allen is indebted to the Government twenty-six thousand six. liundred and ninety-one dollars and fifty-seven cents, (;^26,691 57.)] Rep. No. 313. 21S 11. — Correspondence ivilli John Spencer, receiver al Fort IVayne. Treasury Department, April 25, 1836. Sir : Your letter ol'the 4th instant, enclosing a return for the month of March, and a quarterly account for the quarter ending on the 31st ultimo.; is received. Quarterly returns or accounts are not required to be made to the Secretary of the Treasury, but to the Commissioner of the General Land Office, as your instructions from that oihcer will inform you. The returns required to be made to the Secretary of the Treasury, as you will perceive from the enclosed circular, are 7?ion//i/y, being duplicates of simi- lar statements rendered to the General Land Office, and corresponding, in form, to that for March, received with your letter. As these statements for January and February last have not been received at the Department, I must claim your attention to. the omission, and insist on their transmis- sion, in future, immediately after the close of each month. At the same time, I would also claim your strict attention to the regulations of the De- partment in respect to the periodical deposites of the public money, and to the duty of transmitting the usual evfidences of such deposites to the Sec- retary of the Treasury, as the instructions require. I am. very respectfully, &c. LEVI WOODBURY, Secrelary of the Treasury.. Colonel John Spi:ncer, Receiver of Public Moneys, Fort Wayne, Indiana. Treasurv Department, May 23, 1836. Sir : Since the date of my letter to you of the 25th ultimo, your returruB for the month of April have been received, from which I perceive that the public moneys in yoiu' hands on the 30th ultimo amounted to the sum of ^247,251 64, which amount is the accumulated receipts of your office since the 1st of January last. You cannot but be -aware that the retention of the public moneys in your hands beyond the period of one month, unless the receipts of such month be less than v^lO,000, is a violation of your in- structions. The object of this letter is, first, to require that the whole bal- ance on hand at the time of the receipt of this letter shall be inmiediately deposited, and a certificale of such deposite transmitted to the Departmeni without delay ; second, to inform you that the Department cannot over- look the omission to do so, or your future neglect to deposite monthly, and to transmit your monthly returns, accompanied by the evidence of your deposite, in time to be received at this oiiice within the month next pre- ceding that for which the return is rendered ; third, that any neglect or inattention to these requirements, unless satisfactorily accounted for, wLU require of me, from a sense of official duty, that you be reported to the President, with a recommendation that you be removed from office. I am, very respectfully, &c. LEVI WOODBURY, Secret a7'y of the Treasury. Col. John Spencer, Receiver of Public Moneys, Fort fVayne, Indiana. 220 Rep. No. 313. Tkeasuky DEPAUT^rENT, JuJy S, 1S36. Sir : Since my letter to you of the 2.9th ultimo, directing an examina- tion to be made into the state of the land office at Fort Wayne, Indiana, the returns of the receiver for the month of May have been received, and exhibiting a balance of money in his hands, at the close of that month, amounting to ^601,380 49. He has transmitted, under date of the 27th iihimo, a certificate of deposite in the " Brunch State Bank o{ Indiana," made on tlie 15th of ttie same month, of yS540,433 09, leaving a balance m his hands of $60,947 40. I have to request that you will instruct Mr. West, the examiner refer- ired to in my letter above stated, to make special inquiry into this matter, and report to.the Department the result. I am, very respectfully, &c. J.EVI WOODBURY, Secretary of the Treasury. Ethan A. Buo\v>-, E-q., Commissioner of the General Land Office. Tkeasukv Dm'AUTjNfEM', July 8, 1836. Sir: Your account as receiver of public moneys at Fort Wayne, for the month of May last, with the enclosed certificate of deposite, in the Branch State Bank of Indiana, for $540,433 09, has been received, leav- ing a balance in your hands of §60,947 40. I have to request to be informed why the whole amount in your hands was not deposited at the same time with tht- first-mentioned sum. ' I am, very respectfully, &:c., LEVI WOODBURY, John Spencer, Esq., Receiver, Secretary of the Treasury. Fort IViiyne, Indiana. Receiver's Office, Fori Wayne, July 29, 1836. Sir: Yours of th^ 8th, urging an explanation why the balance of the money on hand was not deposited at the time I made the last deposite, obliges me to state to you, that, owing to the great amount of money that 1 had whh me at that time, (for I had the whole amount due from me to the Government at the tinu; I left the office, except the specie that came in after the wagon that hauled the silver had left, which was about one week before I left myself,) the cashier of the bank declined receiving in that deposite tlie Eastern uioney and drafts, viz : on the safety-fund banks of New York, and the Farmers and Mechanics' Bank of Michigan ; which I received, supposing that they were embraced in his list of funds. The Eastern funds, I left in the bank at Richmond, with the cashier's promise ihat they should go in the next deposite. The Michigan paper I sent to Michigan Bank ; which was deposited there, and the certificate for- warded to the Commissioner of the General Land Office in the last quar- terly report Hep. No. 313. 221. The bank at Richmond received that dcposite with great rehictance, being fearful that the Government might draw the funds out before they could make their arrangement. The money is yet in the bank, for the Government. I shall leave without delay, to make deposite, having received information that the bank at Indianapolis would receive ihe deposites, notwithstanding the letter from the president of that bank, which was the cause of my detention from making the deposite imme- diately after the recei))t of your letter directing me to deposite in that bank, instead of that at Richmond. Copy of letter from president of Branch Bank at Indianapolis^ dated July 14, 1836. Sir : Having understood that the Secretary of the Treasury has directed you to deposite moneys received at your otiice for public lands at this branch, I deem it proper that I should apprize you that the directory have it in contemplation to decline for the present receiving any further deposites, believing that we cannot accede to the terms embraced in the late act of Congress in relation to the deposites, without too great a sacri- fice of interest to this institution. I am authorized to say to you, the board of directors of this branch, unwilling to add to its responsibility so heavy an amount as would likely be your next payment, have decided not to receive the deposite from that office. Respectfully, yours, HENRY BATES, President John Spencer, Esq., Receiver. Hereafter, I assure you that the deposites will be made, so far as I ana concerned, in strict accordance with my instructions. Respectfully, sir, I am your humble servant, JOHN SPENCER. Hon. Levi Woodburv, Secretary of the Treasury. Branch Bank, Indianapolis, ^iugust 17, 1836. We have this day received from John Spencer, Esq., receiver of public moneys, the amount below named of unbankable money, at a discount as follows : l^arge notes on country banks, New York • S35,000 00 1 2 per cent, off - - - - 525 00 Michigan, Ohio, Illinois, and New York, (small) 24,475 00 2 per cent, off - - - - 429 50 Drafts on Bank of Michigan - - - 13,073 69 1 per cent, off - - - - 130 73 §34,475 00 21,045 50 12,942 96 '222 Eep. No. 313. The above amount is included in the receipts given Mr. Spencer on this day for credit Treasurer United States. THOS. H. SHARP, Teller. I certify that the above is a true copy : August 20, 1836. JOHN M. WILT, Clerk in Receiver's office, Fort Wayne. Note. — Mr. Spencer offers the above as a proof that he was obliged to snake a discount, or sustain a loss, when depositing at Indianapolis. I have not time to send a duplicate of the above. Treasury Department, August 13, 1836. Sir : Your letter of the 28th ultimo, enclosing your monthly return for /une, is received. Seeing that the balance in your hands amounts to the sum of ^100,599 32, I must require that the same be transmitted to the bank of deposite forthwith, and request you to explain why the amount has been so long retained in your hands. No answer to my letter of the 8th ultimo has been received. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, Fort Wayne, Indiana. Receiver's Office, Fort Way?ie, August 22, 1836. Sir : I have just received yours of the 13th instant, acknowledging the receipt of my letter of the 28th ultimo, and returns for that month. It also presents the inquiry, why the balance of .^100,599 32 was retained so long on hand, and observes that no reply had been received to your letter of the Sth ultimo. In answer to the above, I reply, that an answer at some length was written to your letter of the 8th, dated July 29, which was probably on Jhe way when you wrote on the 13th instant, and would no doubt be leceived soon after. The amount of funds in the Richmond bank, which I spoke of, was §52,831 39, and is included in the enclosed certificate of deposite. My reasons why the balance of $100,599 32 was so long retained, are as follows: On the 20th of June I returned from depositing at Richmond. From this time to the 26th I was busied in procuring security to my new bond, according to the requisition contained in the circular from the Com- missioner of the Genenil Laud Olfice of 25tli May, and which was re- ceived on the 4th of June, while I was absent. On ihe 26th I started for Rockvillc to have ir approvcxl, and returned on the 10th of July. The office was opened on the 11th, and the extraordinary press of business rendered it advisable that I should remain for a few days until the press Eep. No. 313. 22 •would be over. While preparing the funds for depositc, which had accu- mulated to a large amount, I received the letter from the president of the branch at Indianapolis, (a copy of which I sent you in my letter of 2.9th ultimo,) refusing the dcpositea from me. Afterwards, I received another letter accepting them; and, as soon as I could thereafter, I left to make the deposite, the result of which is contained in the enclosed certificate. I beg leave to repeat tlie assurance that every attention shall be given to the subject of depositing which its importance and my duty require. JOHN SFENCER,' Receiver. Hon. Levi Woodbury, Stcretary of the Treasury. Office of the State Bank of Indiana, .dt Fort IVayne, August 22, 1836. Understanding that reports are in circulation in regard to the course that has been pursued by Colonel John Spencer, receiver of public moneys in this place, in receiving at a discount uncurrent paper in payment for lands, which are calculated to injure him in his relation to the Gov- ernment, I take this opportunity of stating such facts upon this subject as have come within my knowledge. The situation which I have occupied for some time in this branch bank, the daily intercourse which I have had with the receiver, and the consequent knowledge which I have obtained of the manner in which he has discharged his official duties, lead me to the opinion that the reports alluded to have originated either in misun- derstanding or misrepresentation. That paper not authorized by the cashier of the deposite branches at Richmond and Indianapolis to be received by the receiver has in some instances been taken by him at a small discount, is not denied by Colonel Spencer himself ; but I take pleasure in saying, that in no instance within my knowledge has this been done when the necessary exchanges could have been efiected at this bank or with individuals. Owing to the great amount of the sales of the public lands in this district for some months past, and the fact that a large majority of land-buyers have come here unprovided with the right kind of funds, the demand upon u« for land- office money has been greater than we could supply. Under these cir- cumstances, if exchanges had not been made' by the receiver, many indi- viduals who had come a long distance would have been under the neces- sity of departing without the lands they had in many instances selected, or travelling, at the risk of losing their selections, at least one hundred miles, over roads the greater part of the year almost impassable, to obtain the riglit kind of funds. It is under such circumstances, when the pur- chaser could be accommodated nowhere else, that uncurrent paper has been taken by the receiver at a discount. I feel very confident that these exchanges have not been made at the desire of Colonel Spencer. In many instances, within my own knowl- edge, he has peremptorily refused to make the desired exchanges; and in all instances 1 doubt not that he has been induced to do it, ratlier on ac- count of the pressing solicitation of purchasers, than with a view to his own emolument. In some cases, when we could not afford the neces- sary acconmiodation in bank, I have suggested to Colonel Spencer the 224 Kep. No. 313. necessity of his taking, in some instances, at such rate of discount as would satisfy him for tlie expenses of making the re-exchanges, other than land- office money. I doubt not that the exchanges alhided to have been made by the re- ceiver with rehictance, and at a small discount ; and that if he is at fault in this matter, he has erred in liberality towards land purchasers, and a desire to accommodate them, and not with the intention of advancing his. individual interests. I give the foregoing to be used by Colonel Spencer as he may deem proper. H. McCULLOCI^, Cashier. Madison, ,higust 31, 1S36. Sir : I am informed that some things are stated recently to the prejudice- of Colonel John Spencer, receiver at Fort Wayne ; and I am requested to write you. In doing so, I can only say that I have been gratified in learning that his deposites have been made to your satisfaction; and, if so, I hope that minor matters, if mere irregularities, will be overlooked. He is reputed to be an honest and honorable man, and I do \\^i believe tliat he has intentionally either done wrong or violated his instructions. It would to some extent produce excitement if he were removed, ibr he has many warm and influential friends both at Fort Wayne and in Dear- born county, from which he removed to his present residence. Better let it be. With much respect, WILLIAM HENDRICKS. Hon. Levi Woodbury, Seo'ctary of the Treasury. Treasury Department, September 2, 183(5. Sir: I have received the report of Mr. West upon the transactions of" the land oliice under your charge ; upon which I beg leave to remark, that the Department trusts yoiu" deposites will hereafter be promptly made, and that no exchanges whatever of money will take place on any terms, as they open a door to improper practices and unfounded imputa- tions. I am ha{)py to add, that the Department can readily see the diffi- culties in resisting importunities to exchange money and to receive what is not permitted by regulation. It can also duly aj)preciate your excuses for not making more prompt returns and more fre(|uent deposites; but it trusts that, hereafter, a more rigid conformity to your instructions will be practicable, and will remove all cause of apprehension and complaint. I am, very respectfully, your obedient servant, LEVI WOODBURY, Secretary of the Treasury- Col. John Spencer, Receiver, Fort IVayne. Kep. No. 313. 225 Treasury Dkpartment, September 1, 1S36. Sir : V'our letter of the 3 1st ultimo is received, and I am happy to iii- lorm you that Mr. Spencer's explanations have been such tiiat he will, probably, continue in office. I am, very respectfully, your obedient servant, LEVI WOODBURY, Hon. William Hendricks, Madison, Indiana. Sccretaru of the Treasury. Receiver's Office, Port Wayne, October 21, 1836. Sir : This is to inform you that I have forwarded to the deposite bank one hundred and four thousand dollars, in silver, there to remain until I arrive with the gold and paper money. My democratic friends think that I ought not to leave until after we hold our election for President, on the 7th November, which I have con- cluded to await ; and shall leave on that evening, or the next morning, to deposite, with all the funds on hand up to that time. I shall write yoii again before I leave. The sales are rapid, mostly paid in gold and silver. My quarterly report will be forwarded by next mail for last quarter, which ought to have been done sooner, only for the want of help in the office. Hereafter, I think I can get my reports otf, without much delay, after the close of the month and quarter. I am yours, respectfully, JOHN SPENCER, Receiver. Hon. Levi Woodburv, Secretary of the Treasury. Receiver's Office, Fort Wayne, November 8, 1S36. Sir : To-day I leave to deposite all the funds that I have on hand. I shall probably leave them at Lawrenceburg. During my absence, the office will be in the care of John M. Wilt. I shall be gone, probably, about two weeks. Respectfully, your obedient servant, JOHN SPENCER. Hon. Levi WooDiiUuv, Secretary of the Treasury. Cincinnati, November 28, 1836. Sir : Herewith you will receive the certificates of my last deposite. I have been much longer on the road than I had expected, owing to the 22G Kep. No. 313. badness of the same. We have had very wet weather, which caused high waters. I am now on my way to tlie office, and shall write you more fully when I get home. I am yours, respectfully, JOHN SPENCER, Receiver of Public Moneys, Fort Wayne. Hon. Levi Woodbury, Secretary of the TVeasury. N. 13. I had sent, some time since, ^21,000 to the care of the Com- mercial Bank, until my arrival ; the cashier then informed me that he had placed the same to the credit of the Treasurer of the United States, which caused the two receipts of deposite. The charges on my books shall be the same as if all had been made together. JOHN SPENCER. Receiver's Office, Fort Wayne, January 18, 1837. Sir : Enclosed I send my certificate of deposite for one hundred and nineteen thousand one hundred and sixty-three dollars and eighteen cents, from Branch Bank of the State of Indiana, at Lawrenceburg. jgll9,163-fVV Respectfully, yours, JOHN SPENCER. Hon. Levi Woodbury, Secretary of the Treasury. LIST OF FUNDS. Scrip Cold Silver Cincinnati Pittsburg Kentucky Indiana New York Philadelphia - Baltimore - §1,212 50 - 15,698 31 - 30,559 67 - 4,971 00 616 00 545 00 ■ 18,361 00 679 00 620 00 50 00 §73,312 48 Kep. No. 313. 227 The United Slates in account with John Spencer, receiver of public moneys at Fort JVayne, Indiana. Dr. 183G. By cash paid into the Branch Bank of the State Dec. 31 iM Indiana, at Lawrenceburg, to the credit of tlie Treasurer of the United States - §119, 163 IS Risk in depositing the above amount — distance 200 miles ----- 238 32 Compensation for traveUing — 400 miles, at 14 cents - - - - - 56 00 Military bounty land scrip 1,212 50 Allen Hamilton, bill for stationary 167 75 F. P. Tinkham's bill for cabinet work 80 00 Ames Compton's bill for transporting specie - 600 00 Osborn Thomas's do. do. 55 00 Erroneous entry by Joseph Lenge, refunded - 50 00 Undercharged for depositing in last month's statement ----- 10 00 Register's salary and commission 750 00 Receiver's do. do. 750 00 Balance on hand carried to the credit of the United States in next monthly report 15,545 19 Sl38,671 95 Dec. 1 Cr. By this amount remaining on hands, as per last monthly report - . . $65,359 47 31 Amountreceived from individuals in the present month - . - - _ 73,312 48 $138,671 95 JOHN SPENCER, Receiver. House of Representatives, H'ashington City, January 5, 1837. Sir : I desire to see the report of the examiner of the land office at Fort Wayne, la., made by Mr. West last fall, and all the papers connected with and relating to that report and examination, including the letters and correspondence of such officers of the Government, and members of Congress of either House, as may be on file in the Treasury Depart- ment upon that subject, or in reference to the alleged delinquency of the receiver of public moneys at that place ; and as these papers are volu- minous, and I could not well examine them satisfactorily in your offitc, 1 desire copies of the whole, as above referred to. As the letters and cor- 228 Rep. Xo. 313. respondence of gentlemen, the copies of which I seek, are upon a subject of a pubUc nature in reference to a pubUc otiicer, I have supposed they might be seen, and that it is not improper to ask copies, I would be glad to get those copies as early as may suit your convenience. I have the honor to be, &c. J. McCARTY. Hon. Levi Woodbuky. Treasury Department, January 6, 1837. Sir : Your favor of yesterday has been received ; and I have since looked more fully into the papers and correspondence referred to, and re- gret to find them so voluminous, and some of them of such a personal character, that it would not comport with the general rules of the Depart- ment to furnish copies of them, unless to individuals interested or assail- ed in tliem, or on a proper call by Congress, I will, how^ever, be happy to state to you their substance, or furnish copies of any particular papers you may designate, as in your own opinion affecting your private interests or character, if, on examination, it be found that they do. But if none are of that description, (and I believe none are,) it appears to me, on mature reflection and examination of the precedents here in similar cases, that if any public purpose is contemplated by the use of the papers, it is better that the copies should be furnished only upon a public requisition. Allow me to add, sir, that if you or any other gentleman wish to prefer any new charges whatever against the receiver at Fort Wayne, or to have any fur- ther examination made into those heretofore explained by him, both the President and this Department are ready, at any moment, to cause a full inquiry to be made into them, and take thereon such further steps as the public interest may appear to require, I am, very respecttuUy, your obedient servant, LEVI WOODBURY, Secretary of the Treasury, Hon. J. McCarty, House of Representatives. Receiver's Office, Fort Wayne, June 20, 1836. Sir : I have just returned from making a deposite. I was much de- layed in getting off, in consequence of the great press of business in the office, not being able to procure the necessary assistance. Diu-ing the month of May I had to stay in the office. I had nuich difficulty in pro- curing a team to transi)ort the silver, which I at last succeeded in getting. It liad to go round through Ohio, by the way of Dayton, and was on the road between two and three weeks, I do assure you that it has been im- possible to go throngh on the route, as allowed by the Comptroller, with, wagons or on horseback, for a considerable part of the time since the of- fico opened on the 7th of March last. The Wabash, Mississinewa, and Salamonee rivers, and some smaller streams, have been so high as to Rep. No. 313. 229 swim my horse. Tliis I had to do when I toeni on the 1st of June inst. I got the paper-money wet, biU not much mjured. It would be more convenient to deposilc in Dayton, Cincimiati, or Detroit, than at Ricli- mond or Indiannpohs. I'liero is no direct road to either of the last-named places. I am now getting the new bond made, and shall leave in two or three days to sec the district judge for its approval. I regret having been so situated as to get the reprimand from the Sec- retary of the Treasury that he has given me. I will in a few days be able to get anotlier clerk, and will in future attend strictly to depositing as well as other duties. I am, very respectfully, sir, your obedient servant, JOHN SPENCER, Receiver. Hon. Lkvi Woodbury, Secretary of the Treasury . 15. — Correspondence with J. H. Owen, receiver at St. Stephen's, Ala- bama. CIRCULAR. Treasury Department, February 28, 1835. Sir : It has been intimated to the Department that a practice prevails ^i some of the land oflices of permitthig entries and issuing certificates of purchase, without the payment of the purchase-money at the time of the entry. Such a practice being unauthorized and highly re])rehensible, 1 have deemed it proper to make known to you that, if it has been tol- erated by you, it must immediately cease; and any repetition of it hereaf- ter, coming to the knowledge of the Department, will receive prompt and exemplary notice. I cannot omit the occasion to impress upon you the necessity of a strict attention to, and punctual compliance with, the duties required of you in regard to the prompt deposite of the public moneys, and transmission of your accotmts imd returns; and to say to you that the performance of those duties must be regarded as paramount to all other in your official ^station. I am, &c. LEVI WOODBURY, Secretary of the Treasury. To Receivers of Public ^\ow:y at Cahaba, Huntsvilte, Munlgornery, St. Stephen's, Augusta, Chocchiima, New Orleans, Ouacfiita, Dcmop- olis, Murdisville, Sparta, Tuscaloosa, Columbus, fVashi?igton, Ope- lou^as, and St. Helena. Treasury Department, Jipril 12, 1836. Sir : Finding that no attention has been paid to my letter of the 4th February last, reminding you that your returns for the months of No- vember and December had not been received, and apprizing you of the 230 Rep. No. 313. course which your coutinued neglect of this duty would compel me to adopt, it only remains to int'orm you that if your returns for November, December, January, February, and March, are not received by return of mail. I shall report your neglect to the Executive for his inmiediatc action. I am, &c. LEVI WOODBURY, Secretari/ of the Treasury. J. H. Owen, Esq. Receiver of Public Money, St. Stephen'' s, Ala. Land Office, St. Stephen's, Ala., May 29, 1836. Sir: I have to acknowledge the receipt of your letter of the 13th ulti- mo, which did not come into my hands as early as due. I am surprised that you have not received my answer to your communication of Febru- ary, in which I stated the reasons why my returns were delayed, as v/ell as those of the register. All my accounts were made out at that period, but I suspended their transmission at the request of the register, on his discovery that, from the maps having been neglected, in many instances, to be properly marked by his predecessors, he had permitted numerous entries of lands which had been previously sold. As the individuals were known to us, we thought it better to correct such erroneous entries at once, than to make returnsof the lands so sold, and there- by subject such purchasers to delay in the receipt of their money, and the Department to unnecessary labor. It required longer time than we had any reason to suppose to gain the attention of these individuals. And apart from this fact, independent of the ordinary business of a land office, in consequence of the appreciated value of the lands granted by the Span- ish and other foreign Governments, and of which the records are kept here, we are daily subjected to great labor, for which no note is taken, and for which the law allows no perquisite. Preparatory for the courts, the attention of the ollicers of this office is constantly called for by liti- gants in the investigation of these old claims, in granting orders of survey, in issuing patent certificates, and in tlie various incidents of this depart- ment of our duty, which necessarily demands time for patient and delib- erate investigation. Having been honored, too, sir, with the command of a regiment of the military force of this State, I have been twice called on during this season for active and arduous exertion in organizing and furnishing a portion of the men required to march against the savage foe on our border. Having accepted of this command when no require- ment was made on me for exertion, I did not deem myself at liberty to withdraw from it when its duties suddenly became of an important and responsible character. I have received yoin- letter and prepared my accounts, such as you see them, in the interval of a day iVom the imbodying and marching of a de- tachment from this regiment to their rendezvous in the Creek nation. Nor did I believe that a little delay would be of serious import, as a ref- erence to the bank returns (which I am assured are transmitted to your Department,) would show the. amounts and periods of my deposites. Whatever my own losses or privations may be in the service of the Gov- Rep. No. 313. 231 eriinieiit, I am Ibrtunate in having the disposition to pay up, without any- other thou!2:lit than that of the propriety of such a course of conduct, ail tiiat may be justly due from me. The causes of tliese delays, however, having been apparently removed, I beg to assure you that every endeav- or will be used by both officers to obviate every complaint for the future. I transmit herewith two certificates of deposite, the originals of which I transmitted to you early in April. If at hand on the receipt of this, be pleased to forward the present enclosure to the Commissioner of the Gen- eral Land OlTice. I transmit herewith, also, a certificate of deposite of g30,000, dated 2d May, 1S36. I am, very respectfully, your obedient servant J. H. OWEN. Hon. Levi Woodbury, Secretary of the Treasiwy. Treasury Department, September 7, 1836. Sir : Again it becomes necessary to notice your neglect to make your monthly returns for April, May, and July last, and to request your im- mediate attention to tiie subject. I am, &c. LEVI WOODBURY, RECEIVER OF Public Money, Secretary of the Treasury. St. Stepheii's, Alabama. Treasury Department, December 19, 1836. Sir : Again it be,comes my unpleasant duty to complain of the neglect to forward your monthly returns to this office, and your quarterly accounts to the Coimriissioner of the General Land Office, up to the period of your resignation; and to inform you that, if the same are not forthwith trans- mitted, it will become my unpleasant duty to cause the accounts to be stated, and to direct suits to be instituted on your official bonds for the amount which appears to be due. I am, &c. LEVI WOOI^BURY, J. H. Owen, Esq., Secretary of the Treasury. Late Receiver of Public Money, St. Stephen^s, %^labama. [Balance due from Mr. Owens, as late receiver, thirty thousand six hun- dred and eleven dollars and ninety-seven cents, ($30,611 97.)] 13. — CorresfMnd-ence with J. W. Stepheri-tori, receiver at Galena. Tre.vsury Department, November 30, 1835. Sir: Your monthly duplicate returns for the months of August, Sep- tember, and October, have not been received. The frequent occasions on which it becomes necessary to notice the neglect of receivers in this re- spect, suggests a resort to some more eftectual remedy than mere com- 23-2 Kep. No. 313. plaint. Hence, as a means of enforcing a strict attention to this duty, I siiall report any future omission in this respect ibr the action of tlie Ex- ecutive, unless satisfactory reasons are assigned for the neglect. The re- turns inanear are expected to be transmitted forthwith. I am, &c. LEM WOODBURY, Secrelari/ of (he Treamiry. Receivers of Public Money at GaloKt, Illinois, and Tallahassee, Florida. TuEAsuiiY Dehaktjnient, February 4, IS 36. Sir: Your returns for the month of December liave not been received. I regret that tliere should be any occasion to notice the neglect or acci- deirt, (as the case may be,) in this important duty; and avail myself of the occasion to iuform you that, unless your future returns are received at the Department within the montii next succeeding thyt for which tiie re- turn is rendered, it will place me under the disagreeable necessity of re- porting the fact to the Executive, in order to comply wiih the general rule in this class of cases. I am, &.C. LEVI WOODBURY, Sexnlary of the Treasury. J AS. W. Stephenson, Esc].. Receiver of Publie Money, Galena. Land Offuk, Gai.ena, February 27, 1836. Sir : I am reminded by yours of the ultimo, Avhich 1 had the honor to receive by the last mail, of the necessity of punctuality in llie trauismis- sion of my monthly returns. Such (since the commencement of cold weather) has been my own in- disposition, such the amount of sales, and such the diificulty of obtaining competent assistance, that delincpiency in this branch of my duties has been rendered unavoidable. Respectfully, your obedient servant, JAMES W^ STEPHENSON. Hon. Levi Woodrukv, Secrcfa-ry of the Treasury. 'I'reascrv Dkpartment, Deceynher 5, 1836. Sir : It has been my unpleasant duty to complain of your negle t to transmit your nionlhly reiurns with promptness on several occasions ; and I regret that it again becomes necessary to notice your neglect in this re- spect, as also of your omission to deposite the ])ublic moneys at the in- tervals prescribed in the instructions of the Department. I have there- Rep. No. 313. 233 fore to require that your returns for September, October, and November last, be immediately forwarded to this olllce ; and that the pubHc moneys in you4' hands be ibrthwith traiismitled to the designated bankoi'deposite, and placed to the credit ol" the Treasurer. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, ^ Galena. Illinois. ' Land Office, Galena, January 5, 1837. Sir : I have just returned from St. Louis, via Vandalia; at which lat- ter point I was some time detained in attention to private business. Your letter of the 5th ultimo is now before me, and I can only regret that my delinquency in forwarding returns should have been so frequently the subject of merited reproof. The only apology I can offer is, that the re- turns were not in a situation for examination, comparison, &c., at the date of my departure ; and further, that my trip was unexpectedly prolonged. In future, I shall hope to be more punctual. Respectfully, your obedient servant, JAMES W. STEPHENSON. Hon. Levi Woodbury, Secretary of the Treasury. Land Office, Galena, ^pril 23, 1S37. Sir : On the 29th ultimo I left this place to.attend a meeting of the "Board of Public Works" at Vandalia. Previous to my departure an understand- ing was had between the officers of the Galena branch of the State Bank of Illinois and myself, by which it was sti])ulated on their part, should my deposite be made with tiiem, and the act meet the displeasure of the Sec- retary, they would immediately place the identical funds to the credit of the United States in the Agency of the Commercial Bank of Cincinnati at St. Louis. With guaranty, and -the knowledge that the State had recently become a stockholder in the bank, I advised the gentlemen in my office to make the deposite, and forward the certificate immediately. By mis- understanding, however, the certificate was not applied for (although the funds were deposited) before my return. The board of directors of this branch confidently anticipate the deposites; hence their anxiety to preserve the fund in the country until your Department shall have expressed its views on this subject. As, in my conception, the only objection to this course proceeded from the delay consequent on awaiting the acknowledg- ment of the receipt of the certificate herewith enclosed, I must presume to ask your indulgence should my compliance with their request not re- ceive your sanction. Very respectfully, your obedient servant, JAMES W. STEPHENSON. 16 234 Rep. No. 313. Treasury Department. May 11, 1637. Sir : I return the certificate of deposite transmitted with your letter of the 23d ultimo. This deposite being unauthorized, it becomes necessary that you will promptly deposite all the public moneys with which you are chargeable in the Agency of the Commercial Bank of St. Louis ; and that you will continue to do so until otherwise directed. No return having been received from you since that for the month of February, I have not the means of knowing the amount of pubhc moneys in your hands at the time of the deposite in question ; but, by your return dated the 28lh February, I perceive the balance then on hand was jg60,284 46, no part of which appears to have been since deposited. Un- der these circumstances, it becomes the more imperative that there shpuld be no delay in the transmission of all the moneys in your hands to the designated deposite bank. The selection of the Illinois Bank as a depos- itory of the public moneys is a subject of correspondence, but is not yet complete. I am, &c. LEVI WOODBURY, J. W. Stephenson, Esq., Secretary of the Treasury. Receiver of Public Money, Galena, Illinois. Land Office, Galena, May 31, 1837. Sir : I last evening had the honor to receive your circular of the 12th and letter of the 11th instant, returning my certificate of deposite in the Galena branch of the State Bank of Illinois. The deposite bank at St. Louis having stopped specie payment, as we are advised by the latest in- telligence, it becomes necessary, in compliance with your circular of the 12th, that the public moneys on hand be withheld until your Department is again heard from on the subject of their disposition. Mine are on special deposite in this bank ; and I have now to request that I may be instructed to pay over the amoiuit to my successor in office, who will he advised to receipt for the same. Very respectfully, your obedient servant, JAMES W. STEPHENSON. Hon. Levi Wooduury, Secretary of the Treasury, Washington city. Treasury Department, June 20, 1837. Sir : The request made in your letter of the 31st ult., to be permitted to pay over to your successor in ofiice the public moneys in your hands, is inadmissible. It is desired, however, that the same should be specially deposited to the credit of the Treasurer of the United States, in the Agency •f the Commercial Bank at St. Louis, in case that agency is still in ex- istence, or, in the event that it is not, in the Bank of JNIissouri, as soon as possible; and that you transmit a certificate of the funds of which such deposite consists to this office. I am, &c. LEVI WOODBURY, J. W. Stephenson, Esq., Secretary of the Treasury. Receiver of Public Money, Galena, III. Rep. No. 3i:^. 235 Treasury Department, November 11, 1837. Sir: Your monthly return for the month of 'August last has not been received; and you are requested to transmit a duplicate thereof without delay. I am, &c. LEVI WOODBURY, Secretary of Ihe Treasury. [The above circular was addressed to the Receivers at Quincy, Illinois; Fayeite, Jackson, and Lexington, Mississip} i ; Green Day and Monroe, Michigan, July and ^^liignst ; Mineral Point, Michigan ; Crawfordsville, Indiana, September ; Galena, lilinois, Si ptember ; Fayetteville, Arkan- sas, September ; Tallahassee, Florida, September.^ [James W. Stephenson stands indebted, as late receiver, the sum of forty-three thousand two hundred and niuety-fou4* dollars and four cents, (iig43,294 04.)J 14. — Correspondence with S. W. Dickson, receiver at Mount Salus. Tkeasurv Department, Februan/ 7, 1834. Sir : It has been represented to this Department that some of tlie re- ceivers of public money in Mississippi have been enga^red in trading on the bank notes they receive in payment of pubhc lands, by exchanging them for bank notes of inferior value. I hope that there may be some mistake in this business, as it is my duty to state to you that such conduct would be regarded Iw this Department as a gross violation of officiid duty, and bo treated accordingly. But, as such a statement has been made from the most respect-able auth.ority, I nuist ask wiiether you have en- gaged in any such use of the public money received by you, and request a prompt answer to this inquiry. I am, &c., R. B. TANEY, Secretary of the Treasury. To the Receivers of Public Money ai Jiugusta, Mt. Salus, fVashington^ Chocchuma, and Columbus. Land Office, Mount Salus, March 7, 1834. Sir: I hasten to acknowledge the receipt of your communication of the 7th ultimo, the contents of which, I must confess, have astonished me. Should the representation made you, of trading in bank-bills, or any spec- ulation in money whatever, be charged against me, I unhesitatintrly pro- nounce the same a gross perversion of truth, and stand prepared to dis- prove the charge as far as any negative is susceptible of proof; and take this opportunity, if such a charge rests against me, from any source wliat- ever, of suggesting my right to the name of its author, that I may have it in my power as well to expose the calumniator as the calumny. If I know myself, I entered on the duties of my office with the expectation of 236 Rep. No. 313. I, the lawful profits alone of the office, and not of turnhig the office into a shaving-shop. I have, in many instances, exchanged money for accom- modation sake alone, but never for money in anywise under par, which never could affect the interest of the Government ; and having no reward for the same, you may be well assured I could have no inducement to disparage the value or interest of the Government in such exchange ; and have often exchanged Teimessee and Alabama money for our own bank bills, where persons were wishing to travel in the direction of those States, and the aforementioned bills would answer their purposes better there, though not so current here : all of which exchanges (some of them in United States paper, and some in State-banli paper) have been done by me without one cent profit, and, as I before said, without one cent loss to the Government ; and every individual who has been accommodated, or who has been acquainted with any such exchanges, will corroborate the above statement. If such exchange is a fault, I have erred unintention- ally, and without the least benefit to myself: if it is not a fault, (and I cannot conceive it one,) then I am wholly blameless. I am, very respectfully, your obedient servant, S. W. DICKSON, Receiver. Hon. Secretary of the Treasury. Land Office, Mount Salus, (Mississippi,) March 7, 1834. I hereby certify that the above statement of S. W. Dickson is true, so far as the facts have come to my knowledge ; and I further certify that I have known him, several times, to reluse to take a reward for the ex- change of money. T. DUMRALL, Register. Treasury Department, March 25, 1S34. Sir : The Department having received no monthly returns exhibiting the transactions of the land office of which you are receiver, since your appointment, I have thought it proper to call your immediate attention to this duty, and to say to you that^ as a means of enforcing a strict compli- ance with the regulations of the Department in this respect, I shall not hesitate to report the case for the action of the Executive, should the omission be continued. I am, &c. R. B. TANEY, Secretary of the Treasury^ S. W. Dickson, Esq., Receiver of Public Money, Mount Salus, Miss. Land Office, Mount Salus, ^pril 28, 1834. Siu : I hasten to answer your polite communication of 25th ultimo ; and to express my great surprise at the circumstance of your not having received our last November return, forwarded to the Commissioner of the General Eep. No. 313. 237 Land Office 31st January last, as soon as it could be prepared; and on 5th April, the December return was sent off; and immediately thereafter, I for- warded the January returns: and on the 31st January, I sent a certificate of deposite to the Treasurer, to the amount of three hundred and fifty-nine thousand eight hundred and eight dollars and five cents, of which I inform- ed the Commissioner of the General Land Office. I sent those certificates ia advance of my accounts, to show the immense press of business here,^nd that they might form an apology for the protracted delay of my accounts; and I would now further remark, that, for several of the first weeks, we had such a concourse attendant on the otlice, we could not more than at- tend to the immediate sales of land, with several clerks to assist ; and we had to wait until January before we could write up the books, and make out tlie returns in the office, even of the first month. We for- warded our returns in tin cases, on account of the bad roads and weather; and I am unable to account for the delay of them on the road. You will please find enclosed copies of the letters I sent, accompanying the re- turns and certificates before referred to ; which I hope will satisfy you of my due attention to the business of which you complain. The ex- treme ill health of my family for the last month, and even now but little abated, has prevented me from forwarding my quarterly returns earlier ; but, I assure you, the current business of the office is well attended to, and the remaining returns are now maturing for transmission. Respectfully, your obedient servant, S. W. DICKSON, Receiver. Hon. R. B. Taney, Secretary of the Treasury. Land Office, Mount Salus, (Miss.,) May 20, 1S34. Sir : I have the honor to inform you I have completed and forwarded you my monthly returns for the quarter ending the last year, as well as an account current for the same quarter ; and that I also forward to the Commissioner of General Land Office my quarterly return. I here- with also enclose to you two certificates of deposite to the credit of the Treasurer of the United States : the first, bearing date 27th February, 1834, for ninety-four thousand two hundred and forty-nine dollars and eighty-three cents ; the second, dated yth May, 1834, for thirty-one thousand seven hundred and twenty-five dollars and forty-one cents; amounting, in all, to one hundred and twenty-five thousand nine hundred and seventy dollars and twenty-four cents ; which sum, added to the cer- tificate which I heretofore forwarded the Treasurer, (say three hundred and fifty-nine thousand eight hundred and eight dollars and five cents,) amount, in all, to four hundred and eighty-five thousand five hundred and thirty-three dollars and twenty-nine cents, deposited by me since in office. 1 beg leave to suggest to your consideration, as an apology for my seeming delinquency in the delay of my returns, that innumerable mis- takes arose in the land entries of the first quarter, which were brought to my office daily for correction. In attempting to rectify such errors, I have produced a discrepancy in iny return of sales and my qnarterly and monthly returns. In many instances, those land purchasers would apply for, and obtain, a return of their money for lands previously sold 238 Eep. No. 313. and not marked on the maps, after my abstract for those sales would be written up ; in some such cases the correction was made on the register, and, ill the hustle of business, neglected on the ahstracts; which, I think, must have produced the errors. Thesj errors required a si^arch into each individual entrj', over the immense sales of the two fnst months, in every book in the office, making a tenfold labor to the ordinary examinations and preparations. I now make my quarterly returns agree with my register,, which induces the belief that the mistake has arisen as before mentioned. I would now suggest, that all the improper entries, producing such end- less trouble, were not under my control, and could not originate with me, and many of them not in the register's power to avoid the maps being, in many instances, improperly marked. And another circumstance well calculated to produce embarrassment, the office was, in all the last quar- ter of the last year, not only full, but more than full, with eager pur- chasers. The spirit of speculation pi-oduced great fears with all the set- tlers, lest speculators would purchase around them, and crowd their set- tlements ; and such was the niania, that many applied for, and some actually purchased, lands they liad long since paid for ; and such un- easiness prevailed that the register informed me, and I believe the fact to be, that many made two, and some three, applications for the same land. Hundreds waited for weeks at the office, which produced a con- fusion unavoidable by the officers. I am thus particular to show the endless trouhle I have had to encounter, in correcting mistakes over whicii I had no'contiol ; and I was informed that the practice had been, in the office, to correct mistakes before the entries were sent up. I was not aware, until recently, that my register of receipts each month should be accompanied by a monthly return to your Department, not having seen instructions. I am now maturing, and will in a few days complete, my monthly returns for your Department, and forward them, of the first quarter of this year. I do expect, as soon as I can get the business up^ to be able to keep my returns up with the business, 1 have had an ex- tremely sick family for the last eight weeks; but have used every ex- ertion my situation, as such, would affiird in the discharge of my official duties. I liave charged the sales with the amount sent heretofore in the register of receipts : and charged in the succeeding month the error to balance the account; of which I will inform the Commissioner of the General Land Office. I am, sir, very respectfully, your obedient "Servant, S. W. DICKSON, 7?eceiycr. Hon. R. B. Taney, Secretary of the Treasury. Treasury Department, May 19, 1834. Sir : Lest the letter of which the enclosed is a duplicate mayhave mis- carried. I have thought it proper to transmit a copy, and again to call your attention to its requirements. I am, &c. R. B. TANEY, Secretary of the Treasury. Receivers of Public Money, t^lu^usta, Mount Salus, Columbus, Chocchuma. Rep. No. 313. 239 Treasury Department, May 21, 1S34. Sir : I regret to perceive, from your letter of the 28th iiUimo^ that the regulations of the Department in regard to the transmission of monthly- returns and certificates of deposite, have either been overlooked or not understood. Monthly returns, as the enclosed instructions will inform you,, are to be made in duplicate ; one to be forwarded to the Secretary of the Treasury, and the other to tlie General Land Office. Certificates of deposite are to be addressed to this office. These, and the prompt and punctual deposite of the public money, are to be regarded as paramount duties, the strict performance of which will be insisted on. I am, &c. R. B. TANEY, Secretary of the Treasury, S. W. Dickson, Esq., Receiver of Public Money, Mount Salus, Miss. Treasury Department, November \, 1S34. Sir : Obsei-ving that the sum of money deposited by you on the 30th of September last is short, by a large amount, of the sum in your hands at that date, it is proper that I should call your attention to that clause of the circular of the 1st of May, 1831, which requires that eacli deposite shall include all the moneys in your possession, and inform you that the Department will hold you to a strict compliance with tiie regulations irt this respect. I am, &c. LEVI WOODBURY, Secretary of the Treasury. S. W. Dickson, Esq., Receiver of Public Money, Mount Sains, Miss. Treasury Department, January 30, 1835. Sir : Again it becomes my duty to notice your neglect to render your returns for the months of October, November, and December last. I feel the more surprised at the omission, since, by letters from the Department, dated 25th of March and 21st of May last, you were given to understand the course which your neglect would oblige the Department to adopt. It only remains to say, that if your returns are not promptly and punctually rendered, and tlie public moneys deposited as the instructions of the De- partment require, I shall be under the painful necessity to recommend to the President that you be removed from office. I am, &c. LEVI WOODBURY, Secretary of the Treasury. S. W. Dickson, Esq., Receiver of Public Money, Mount Salus. 240 Bep. m. 313. Treasury Department, February 4, 1836. Sir : Your returns for the months of November and December have not been received. I regret that there should be any occasion to notice the neglect or accident (as the case may be) in this important duty; and avail myself of the occasion to inform you that, unless your fu- ture returns are received at the Department within the month next suc- ceeding that for which the return is rendered, it will place me under the disagreeable necessity of reporting the fact to the Executive, in order to comply with the general rule in this class of cases. I am, &c. LEVI WOODBURY, Secretary of the Treasury. To Receiver at Mount Salus. Land Office, Mount Salus, (Mi.,) February 16, 1836. Sir : I herewith send you my monthly account current for November ' last ; the vouchers are forwarded to the Commissioner of the General Land Office. I very much regret this great delay in my returns, but it has been beyond my control to do otherwise. I have labored under severe indis- position for several weeks, and a part of the time I have been confined to my bed. I was first attacked with erysipelas of the ankle, and during the public sales was compelled to expose myself so much as to endanger the loss of my limb, if not my life; since which time my health has occa- sionally alternated, but I have never attended to business two days at a time without relapsing. Another serious inconvenience to the discharge of my duties : my old clerk, in the midst of the press, was compelled to leave me ; and I can assure you it was as much as I could effect to keep up the current business, and properly attend to the moneyed concerns of the office. My returns will be brought up as soon as my health will allow. The vicissitudes of my health have been so severe, I shall, by this mail, send in my resigna- tion to take place at the end of this quarter. I would beg leave to mention that, though my vouchers of deposite in Natchez bank are late in their date, yet the money was deposited in the branch bank at Jackson in due time, and my indisposition prevented me from attending to the forwarding the certificates to Natciiez ; in fact, my bodily infirmity has prevented me from regular attention to the duties of my oftice. Most respectfully, your obedient servant, S. W. DICKSON, Receiver. Hon. Levi Woodbury, Secretary of the Treasury. Land Office, Mount Salus, (Mi,,) March 15, 1836. Sir: I herewith enclose you my monthly account current for the month of December last, a duplicate of which, with the vouchers, is sent to the Commissioner of the General Land Office. 1 beg leave to refer you to my quarterly account current, sent to the Rep. No. 313. 241 General Land Ollicc, showing the true balance on hand at the end of the third quarter, to show the error of iSGOO excess, which is charged to be on hand in the October monthly account ; the error has also run through the monthly account current of November last, but the quarterly account current of each quarter corrects the mistake. I have also explained this error to the Commissioner of the Land Office. You will please make allowance for my very bad health Ibr some months past, as a reason for my delay in my accounts. I have barely been able to keep up' the current business of the office, and leave my ac- counts behind their usual time of settlement. I can assure you the de- posites are all regularly made, and the fiscal concerns of the office whole- somely conducted. You must bear with my delay in the accounts. If I had anticipated such continued ill health, I would have resigned before this time. 1 hope, however, to bring up my accounts, as my health, with- in a few days, has greatly improved ; and I shall spare no pains, as my heahh will permit, to settle all my accounts as soon as possible after my resignation takes place. Respectfully, your obedient servant, S. W. DICKSON, Receiver. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, September 7, 1836. Sir: I embrace this occasion to call your attention to the duty required by your instructions, of making monthly duplicate returns of the transac- tions of your office — one to be transmitted to the Commissioner of the General Land Office, and the other to the Secretary of the Treasury. I am, &G. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, Mount Salus, Mississippi. Treasury Department, May 25, 1S37. Sir: I regret to be under the necessity of complaining of your neglect to transmit your return for the month of March last, and of reminding you that greater strictness must be observed in the performance of this duty. I am, &c. LEVI WOODBURY, Secretary of the IVeasury. Receivers op Public Money, Ka.s/caskia, Illinois, March and April; , Columbus, Mississippi ; Mount Salus, Mississippi, February and March. [S. W. Dickson, late receiver at Mount Salus, is indebted to the United States Si 1,231 90, and to the Choctaw school fund S89S 53 ; ma- king in all twelve thousand one hundred and thirty dollars and forty-three cents, (Sl2,130 43.)] 242 Rep. No. 313. 15. — Correspondence with J. L. Daniel, receiver at Opelousas. CIRCULAR. Treasury Department February 28, 1835. Sir : It has been intimated to the Department that a practice prevails at some of the land offices of permitting entries and issuing certificates of purchase, without the payment of tiie purchase-money at the time of the entry. Such a practice being unauthorized and highly reprehensible, I have deemed it proper to make known to you, that, if it has been tol- erated by you, it must immediately cease ; and any repetition of it here- after, coming to the knowledge of the Department, will receive prompt and exemplary notice. I cannot omit the occasion to impress upon you the necessity of a strict attention to, and punctual compliance with, the duties required of you in regard to the prompt deposite of the public moneys, and transmission of your accounts and returns; and to say to j^ou that the performance of those duties must be regarded as paramount to all other in yoiir o fficial station. I am, &c. LEVI WOODBURY, Secretary of the Treasury. To Receivers of Public Money at Cahabn, Hnntsville, Montgomery^ St. St('.pheii,\^,^^ng-usfa, Chocc/un?ia, New Orteans, Ouachita, Dc?nop- olis. Maritisvilte, Sparta, Tuscaloosa, Columbus, Washington, Ope- lousas, and St. Helena. Treasury Department, January 29, 1836. Sir : Finding that no monthly returns of the transactions of your of- fice have been received since your appointment to office, I must claim your immediate attention to tliis duty. I enclose a blank, showing the form in which they are to be rendered, and request that you will trans- mit one for each of the months in arrear, and also for each future month, to this office ; and, at the same time, a duplicate to the Commissioner of the General Land Office. Punctuality in the discharge of this duty, and in the transmission of the public moneys to the bank of deposite, will be insisted on ; and I would therefore commend you to a strict regard to the instructions of the Depart- ment in these respects. The abstract for the month of December, ad- dressed to this office, is received ; but, as it is not in the form required, it has been referred to the Land Oifice. I am, &c. Receiver of Public Money, Opelousas, Louisiana. LEVI WOODBURY, Secretary of the Treasury. Rep. No. 313. 243 Receiver's Office at Opelousas, La. September 5, 1S36. Sir : Enclosed you have the affidavit of Andre Martin, Esq., who was present on the 2d instant when 1 offered to deposite, in the office of dis- count and deposite of the Union Bank of Louisiana at VcrniiUonville, the sum of §17,200, all in bills of specie-paying banks in New Orleans, except $25 hi gold and silver: and a great quantity of said bills were the bills of the Union Bank itself. Tiie cashier of the said office of discount and deposite of the Union Bank of Louisiana gave no other reason why he would not accept the deposite offered by me, but that he was aware that Congress, at the last session, had passed a law making it the duty of receivers of public moneys to receive only gold and silver; and moreover, that the Government would only receive gold andsilver from the deposite bank; and that he would receive nothing else in deposite on account of the Government of the United States but gold and silver. I asked him (the cashier) if he had been so instructed by the mother bank, and he said no. I have brought the money, to wit, ^17,200 all back to Opelousas, and have deposited the same in the office of discount and deposite of the Me- chanics and Traders' Bank of New Orleans at Opelousas, where it will re- main until you instruct me what I am to do with it. I have always discov- ered in the cashier of the branch of the Union Bank at Vermilioiiville a disposition not to receive the deposites from this office, and several times he has told me that he would not receive the bills of any of the deposite banks in tiie State of Mississippi, which I always thought it my duty to receive. Very respectfully, your obedient servant, JOHN L. DANIEL, Receiver. Hon. Levi Woodbury, Secretary of the Ih'casury. State of Louisiana, Parish of Lafayette. Vermilionville, September 2, 1836. Personally appeared before me, the undersigned, parish judge, within and for said parish, Andre Martin, Esq., of said parish, who declared, on oath first had and taken, that he was present on this day, the second day of September aforesaid, at the office of discount and deposite of the Union Bank of Louisiana, established in Vermilionville, in the parish of La- fayette aforesaid, when John L. Daniel, Esq., receiver of public moneys at Opelousas, in this State, offered to deposite in said branch of the Union Bank of Louisiana, established at Vermilionville aforesaid, the sum of seventeen thousand two hundred dollars, public moneys belonging to the United States, all in bank bills payable hi this State, except twenty-five dollars in gold and silver, and which sum of seventeen thousand two hundred dollars the cashier (Casimer Derbigny) of said branch of the Union Bank of Louisiana at Vermilionville refused to receive on de- posite for the Government of the United States. ANDRE MARTIN. Sworn to and subscribed before me, the undersigned, parish judge in and for the parish of Lafayette aforesaid, on the day and year first above written. THOM. B. BRESHEAR, Parish Judge. 244 JRep. No. 313. Treasury Department, October 3, 1836. Sir : I enclose a copy of a letter from M. Gordon, Esq., in reference to your complaint against Mr. Derbigny, and have to request further expla- nations in this matter. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver of Public Money, Opelousas, Louisiana. Receiver's Office, Opelousas, (Louisiana,) November 6, 1536. Sir : I have the honor to acknowledge the receipt of your letter of the 3d of last month, enclosing a copy of a letter from Martin Gordon, jr., cashier of the Union Bank of Louisiana. I can only state, in answer, that when I arrived at the branch of the Union Bank at Vermilionville, to deposite the sum of :^I 7,200, I recited to Mr. Derbigny that part of your circular which referred to the manner the deposites should be made after the 15th of August last, and further remarked to Mr. Derbigny that the certificates could be made out as usual, only staling below how much of the amount was in gold and silver, and how much of the amount was in current bank notes. Mr. Derbigny replied that he cared nothing about the form of the certificate, as he would not receive any thing on deposite from the United States but gold and silver; he further stated thus, that, if I was a mind to leave the money in deposite on my own account, he would take a list of the bills, and I could leave it. All the above can be proved by Mr. Martin, and, perhaps, by Mr. Voorhees. Since the time I offered to deposite as aforesaid, the directory of the bank at Vermilion- ville, as well as some of the directors of the mother bank, have been so well convinced of the misconduct of Mr. Derbigny, in regard to the afore- said deposite, and in regard to others of his duties, that they have told him it would be better for liim to resign, as he would certainly be turned out of the office he then held if he did not resign ; and he, knowing that he could not much longer hold the same, resigned the oliice ; which is now filled by a very wortliy gentleman. J could forward you the certifi- cate of Mr. Martin, confirming what I have above stated, and I could have a part of the same statements confirmed by Mr. Voorhees; and will do so if you require it. Very respectfully, your obedient servant, JOHN L. DANIEL, Receiver. Hon. Levi Woodbury, Secretary of the Treasury, fVashington, D. C. [John L. Daniel is indebted to the Government ^7,280 63.] Rep. No. 313. 245 16. — Correspondence with S. W. Beall, receiver at Green Bay. Treasury Department, October 8, 1835. Sir: Lest you may not tiave received copies of the enclosed circulars, showing the requisitions to be observed in relation to the receipt and de- posite of the public moneys, they are herewith transmitted. Until otherwise directed, your deposites will be made alternately in the Bank of Michigan, and in the Farmers and Mechanics' Bank at Detroit. Commending to your attcjition a strict regard to the duties enjoined, in respect to the periodical deposite of the public moneys, and to the trans- mission of your quarterly accounts and monthly returns, 1 am, &c. LEVI WOODBURY, Secretary of the Ti^easury, S. VV. Beall, Esq., Receiver of Public Money, Green Bay, M. T. Green B4.Y, November 15, 1835. Sir: I have the honor to acknowledge the receipt of your letter of October 8th, together with two circulars, viz: May 1st, 1831, and January 15th, 1S34. I have up to this date deposited in the Farmers and Mechan- ics' Bank at Detroit, but, as instructed, I shall hereafter deposite alternately in that bank, and in the Bank of Michigan. I have the honor to be, with great respect, your obedient servant, S. W. BEALL. Hon. Levi Woodbury, Secretary of the Treasury. Treasury Department, Jipril2Q, 1836. Sir : After having informed you, in my letter of the 4th of February last, that your continued neglect to transmit your monthly returns, within the month next succeeding that for which they are rendered, would sub- ject me to the painful necessity of reporting the omission to the President, it is with regret that I am again compelled to take notice of a similar neglect. No returns for the months of January, February, and March last, have been received from you. Under these circumstances, I must require that they be rendered forthwith, and inform you that, if they are not re- ceived by return of the mail, I shall report your neglect to the Executive, with a recommendation that you be dismissed from office. I am, &c. LEVI WOODBURY, Secretary of the Treasury. Receiver op Public Money, Green Bay, Michigan Territory. 246 Rep. No. 313. Green Bay, May 17, 18X6. Sir: I have the honor to acknowledge the receipt of your letter of April 26th, which arrived in the boat whicli brought me from Detroit. I am confident that my letter of March 2d, in reply to yours of Febru- ary 4th, had not been received on the 26th at the Department. And in the fear that that, as well as my returns for January, and February, and March, have been lost, I shall prepare and send duplicates by the next mail. I. beg leave to state, that during the past winter it was utterly out of my power to deposite the public money periodically, and at the same time to transmit regularly my returns to the Department, signed by myself. During the summer season, no ditRculty or omission will occur, and it is probable that the improvements and settlement of the country will have so far ad- vanced by the next winter, that no interruption will happen in the regu- lar discharge of my duties. I have made three trips to Detroit during the past winter, the difficulties of which you of course are unaware. And I have written to the honorable Lucius Lyon, of the Senate, to call at the Department, and make an explanation, which 1 am sure Avill be satisfac- tory. It gives me the greatest pain and uneasiness to find that, in your opinion, I have neglected to perform any part of my duties; and I am im- pelled to greater exertion to remove that impression by punctuality in fu- ture. I have the honor to be, very respectfully, your obedient servant, S. W. BEALL: Hon. Levi Woodbury, Secretary of the Treasury. P. S. My returns for April are forwarded by this mail. Treasury Department, November 11, 1837. Sir: Your monthly return for the month of August last has not been received; and you are requested to transmit a duplicate thereof without delay. I am, &c. LEVI WOODBURY, Secretary of the Treasury. [The above circular was addressed to the Receivers at Quincy, Illinois; Fayeitc, Jackson, and Lexington, Mississippi; Green Bay and Monroe, M\c\\\2,:yn, Jul}/ and ^^uij^ust ; Mineral Point, Michigan; Crawforusville, Indiana, September; Galena, Illinois, September ; Fayetteville, Arkan- sas, September ; Tallahassee, Florida, September.'] Rep. No. 313. 247 PART V. FACTS CONNECTED WITH THE FOREGOING DEFALCA- TIONS, AND DEEMED MATERIAL TO DEVELOP THEIR TRUE CHARACTER. 4 It may well be supposed by the House, that, in the course of an inves- tigation involving so large a massof testimony, both written and oral, and from the despatch incident to iheir labors, the committee have di!>covered numerous facts of deep interest to the House and country, wl'iich they have been unable to imbody for presentation to the House imder either of the general divisions of this report whicli have ])receded, and although such facts have a direct and kindred relation to the subject of defalcations of public officers and their returns. Some of them will now be briefly ad- verted to. The committee have found that both the late and present collectors at the port of New York have been in the receipt of large annual incorr.es, amounting, according to the testimony, from ^5,000 to •^15,000, from sto- rage of dutiable merchandise in the public store-houses while the duties on such merchandise are being computed. The public stores at New York thus used, are divided into two classes by the collector : one, devoted to the merchandise under ap})raisemei)t ; the otlier, to merchandise not ordered to apjiraisement, nor permitted to be taken by the importer, and being still in the keeping of the law ollicers, to secure duties. The former are called appraisers' public stores, and are rented at the public expense. No storage is charged on merchandise de- posited in them, but their whole management is at the expense of the Gov- ernment. The other stores are called general order stores ; and on these, perquisites, amounting to the sums before named, annually, in the shape of storage, cartage, and labor, are charged and received by the collector, who takes upon himself the payment of the incidental rent, retaining to himself the entire surplus. Of this large and profitable class of income, neither the late nor present collector has made any return whatever to the Treasury, notwithstanding the requisitions of law appear imperatively to require it. By the act of May 7, 1822, section 9, establishing the com- pensation of custom-house officers, it is expressly enacted '< that, ivhen- ever the emohtme.nts of the collector of the customs at New York shall exceed four thousand dollars in any one year, after deducting the neces- sary expenses incident to his office in the same year, the excess shall, in every such case, be paid into the Treasury for the use of the United States.^' By section 11 of the same act, section 9 is so limited as not to extend to fines, penalties, or forfeitures, or tlie distribution thereof; and by section 18, compensation to collectors for superintending light-houses, in addition to the betbre-named salary, is prtwided. In the opinion of the committee, the emoluments of the collector at New York, arising from public store-houses, wi)ich are necessarily at all times under the charge of sworn officers paid out of the public Treasury, are, for no sound reason, to be distinguished from any other emoluments of his 248 Rep. No. 313. office, for which he is required to account to the Treasury. And why the collector has been or should be permitted, by virtue of his oliice as col- lector, to regard as an unofficial expense the rents of any number of pub- lic stores, and, under this pretext, to make them the sources of profitable speculation, while tlie superintendence of the whole is at all times neces- sarily conducted at the expense of Government, and by subordinates paid by Government, is to the committee wholly incomprehensible, and believed to be not only an evasion, but a positive violation of the provisions as well as obvious intent of law. The books of storage, cartage, and incidental expenses of the public stores, are not kept so as to exhibit the truth, or any record truth, as to the extent of emoluments thus annually arising to the collector ; and, from the testimony of the principal storekeeper, both in relation to these per- quisites under the former and present collector, as also from the testimony of Mr. Hoyt himself, the committee are of opinion that the design of this looseness in this portion of the accounts of the custom-house is to escape the possibility of full and minute investigation into the extent of moneys thus withheld from the public Treasury,and lest its importance might justly be appreciated. The subjoined testimony of Sidney fVetmore, public storekeeper, examined by M?\ IVise, will elucidate these positions: Question 3. Will you please stale the amount of storage charged under the late and present collectors, and the amount of rent and expenses paid by these collectors respectively, for each quarter, since you have been in office ? ^nsiver. I cannot state the amount paid to the late collector correctly, as he often drew the amount from my liands collected daily, and part of the time paid rents himself, and part I paid by his order. So that he can only tell what are the nett proceeds received from the stores during his term of office. Tiie amount oinett proceeds received by the present col- lector for the three quarters he has been in office, I think is about ^2,500. Question 4. Is there no regular book or account kept of amounts re- ceived for storage ? Jinswer. I keep a cash book of the gross amount of storage, cartage, and labor received ; but which does not show the amount paid out for expenses, nor does it distinguish what part is received for goods sent on private storage at request of the merchant, or what accrued on goods sent on general order. Question 5. Are you not the only proper officer charged with keeping the accounts of storage; and what is your gross estimate of amount re- ceived by Mr. Swart wout per annum for storage? Ansioer. I am the only officer charged with the keeping of the storage account. Mr. Swartwout received some of the stores; of course I can- not say what should be deducted from the gross amounts for rent of them; but from all the means 1 have of knowing and judging of this business, I should say the nett amount, after deducting rent and expenses, and exclu- sive of Mr. Swartwout's stores, might average, yearly, between $5,000 and 5^10,000. The business, as I before have stated, is very variable, owing to the quantity and manner in which goods have arrived. Mr. Swart won Js storehouses were worth probably {5.3,000 per annum. This would make the entire nett perquisites ^5,000 per annum. I have known, during five years, the nett perquisites on storage to be as low as ^2,000 Rep. No. 313. 249 per annum, and to vary from that to jS^10,000 per annum, in one instance. Hence, I put the gross average at ^5,000 per annum. Jesse Iloyt, collector, exaviincd by Mr. Hlse. Qucslion 3. Do you account to Government for the prolit of lhei;e stores, otlier than appraisers' stores? If not, to whose use are the per- quisites of storage, over and above rent and expenses, appropriated ? ^dnswer. I do not account to Government for any excess over rent tUid expenses. This profit, I understand, has been, from the organization ul the present tariff system down to the present time, considered as beloi.C;- ing to the collector. It is a private storage business of no expense to the Government, and it has never claimed the protit. The person holding the office of collector leases the stores and pays the expenses, and chare e-f the storage to those Vv^ho use the stores; and the rate of storage is thrd established by the Chamber of Commerce, as this witness has always nu- derstood. This profit, witness believes, has always been for the use of ih; person holding the office of collector. Quest ion 4. Does tjie collector or the Government pay the officios who attend to storage ? t'lnswer. In answer to this question, this witness says that the law re- quires that all goods imported are to be landed and taken care of by *' officers of the customs," until duties are paid or secured. To each of the public stores there are a sullicient number of inspectors (sworn officers) to attend to the receiving and delivering the goods from the public stores. There are two or three of such officers to each store, depending upon. the size ; and in some cases there may be four of such inspectors to a store. These inspectors are called off for other duties, when the case re- tpiires, and are also responsible for other duties when their services are (iemanded. These officers receive their daily pay, as inspectors, from the Government money. They do not, as witness understands, do any labor: but merely keep an account of goods received and delivered." The labor- ers are paid by the person holding the office of collector, who receives the storage. Another development of fact made by the committee in })ursuing tlie inquiry in regard to the disposition made of public moneys b^' Messrs. Swartwout and Price, and other public olficers, is deemed hv the com- mittee deserving of being presented to the special attention of the House. How far it may have entered into the defalcations of the late collector and district attorney, as an incipient impulse in breaking down the true estimate by the public officer of his relations to community and to Govern- ment, is left to the judgment of the House upon the facts reported. But of its direct tendency to reduce public office to the degraded character of merciiandise, to be bought and sold to subordinates by a regulated annual stipend, and to demoralize and prepare the mind of incumbents of oilice lor acts of peculation and plunder upon the public revenues, there is no doubt remaining in the judgment of tlie committee. The system of a regular taxation of public olficers connected with and deriving patronage from the custom-house at New York, l)y a tariff proportioncjd to such patronage in each case, for the support of party elections, is now alluded to. Instead, however, of attem))ting to characterize this syt^tem in the terms merited, the committee will attempt oniv to present. a summary of 17 250 Rep. No. 313. the testimony taken upon the subject, referring for more minute details *o the pages of the committee's journal. ^^rejit S. Dc Peyster was sworn as a Witness. in his first :inswer, he testified thai he had held the situation of weigher in the custom-house about live years. In reply to the 3d question, he returned tlie following answer: '• 'I'iie weighers were called on tu pay fifteen dollars each for the suj)- ])ort of the election ; and Vviien 1 declined, Mr. V'anderpoel, the depuiy .surveyor, observed, that I ought to consider whether my ;^1,500 per annum was not worth paying fifteen dollars for. Under the inipression that it was the price of my situation, I paid it. The above occmred dm'ing the last spring election for charier officers. During my holding otiice, for about five years, I was occasionally called on ; but ahvays declined, until ^^•jthin the last two years." , In liis fourth answer, he .snid his olTlce of weigher was held under the United States, and paid latterly out of the Treasury; formerly, a com- mission was allowed on the amount of goods weighed. In his fifth an- swer, he said he knew only by hearsay as to whether the salaries of other .subordinate otfieers were thus assessed for the use of parly purposes ; and adds, "but I saw n)any of the weighers pay the tax of fifteen dollars." The money thus collected, he testified '• v/as intended to be used to sup- l)ort the election of persons attached to the present admin.istralion." The person who collected the tax from him was Mr. Vanderpoel, who '■ at that lime held the office of deputy surveyor. He did not recollect tlic ^imoiint of his salary. He believed he now holds the office of appraiser.'' He (Mr. Vanderpoel) had a list of the names of the officers from whom he collected the tax. The last payment of ^15 made by the witness, re- ferred to in his 3d answer, was made " since the last collector (Mr. lloyt) camcinto office." The wituoss had been removed l;y Mr. Hoyt, but had never condescended to ask the reasons, &.c. David S. 'Lyon was sworn as a witness. In answer to the first qiies- Tion, he said : '• I was the lirst deputy collector of the port of New York during the wliole time Samuel Swarlwout was colh'Ctor." In answer to the 21st question, he said: •• i have frerpiently been called on to contribiUe to political objects while I was deputy collector, as an officer of the custom-house. The amount Avas from twenty to one hun- dred dollars. Tlie tax was pro rata^ according to salary. It bore a proporlioii of from one to six per cent. I frequently paid a part of thr amount. When it was too high, and more than I could alibrd, I urgfd them to reduce it. In one instance, when I Was assessed twenty dollars, Mr. Swartwont told the collector of the fax that ten dollars was enough for me to pay. For a few years bade I have not paitl any thing to the general committee, because I could not afford to pay the amount assessed, and because I could not conscientiously longer sustain the party. The collectors of the Tammany Hall general committee, one of whom was John Becker, called on me several times. William Tyack once or twice called on me to collect the aujount v/ith which' I was assessed ; he wa.s not the regular collector, but was one of the general comnnttee. I be- lieve that nearly all the officers of the custom-house, in doors and out, and the clerks, were similarly taxed, and generally paid what they wen; assessed. It was assessed by the general committee of Tammany Hall, and for tho support of the party denominated the Tammany Hall party. Hep. No. 313. 251 If the individual did iioL pay the amount ho was taxed with, the collector would rcuiark, You will bo rcporlod tothegenoral coumiittec — and every- body well UMdcr.stood that pro.scriptiou would ibllow. The coU'.'Ctor of the j^eueral cataiiiittcc has an alphabolioal bouk, wiiich contains the names of ))ersons taxed, and the amount tvich individual is required to pay.'' 'riiis witnt^ss had ceased to b(; deputy collector, iuid was so notified by the present c;)Uector when .Mr. Swartwoul's term ol'oilice(;xpired. T!ui8, by these two ex-otlicers of tlr; customs, was it proved that, din-ing the term of Ml-. Swartwout, and of the present collector, (Mr. TToyt,) both, had this pro- nu^ a tax been assessed upon the salaries; of officers of the Gov- • ■runieiit. Ahrahu^n B. J'^tin.di'rpin'l, a person now incuml^ent in office, wa^ sworn as a witness. He said : •' I was appointed to the office of inspector of the customs in May, 1829, at 551,095 per year, and held sueh until 1836, whoi I was a[)poinled deputy surveyor, at ^1,500 per year, and March, 183S, appointed appraiser at S-J,000 per year." Mr. \Vise then propounded the 2d question to the witness, and certain occurrences took jiluee in the commiltco, whic'n were unanimously ordered to be stated on tht; journal, thus: -Mr. Wise }>ropouHded to the witness, .Vbraham B. Vanderpoel, the followinj^ (piestion, to wit : Question 2d. ' Do you know whether the offi- cers of the custom-house have evor been called on to contribute sums of money to party and political objects? What officers have been so called upon; by whom; f)r what aiuount; with or without regard to their salaries of oilice ; wlieii \\\^ tliey contribute ; if they refused, was any in- timation q;iven that their refusal mis^ht occasion th(ar removal ; what amount has so Ijeen Ciuitrihuted or collected, and for the sujj.port of what party, at any one eb^crion?' "The witness took the interrogatory without ohjeciion to propounding, the same, and proceeded to write his ;mswer thereto on the paper attachf!intment, and I have made no colleciions for this year; nor have I been discharged from said appointment." In an- swer tt) the 1th queslioii, whether he had ever collected any sum or siuns of money from William M. Price, whilst he wcis district attorney of the 252 Eep. No. 313. United States, for the democratic republican party of New York, he said.: '• All the collections I ever made for the democratic republican party were strictly confidential; I therefore respectfully decline answering the ques- tion." In answer to the 17th question, he said he was the collector of the democratic republican party for five or six years previous to 1838. By the IDtli question, he was asked whether, dnring the time lie was collector of the democratic republican party in the city of New York, and since, he had known William M. Price to pay or contribute any sum or sums of money to political and party objects, he answered : '' I cannot answer that question without violating confidence." In answer to the 20th question, he said : '* He had never known William M. Price to con- tribute, at any one time, or at diiferent times, to carry an election for tiie democratic republican party in the city of New York §500, nor half of that sum." He was then asked how much less he had known him to contribute. He declined to answer. He was asked whose confidence he would violate by answering the 19th question. He answered: "The confidence of the finance committee of the geneial democratic republican, committee." In answer to the 26th question, he said tliat Mr. Vander- poel was a member of one of these committees in 1838; and, in answer to other questions, that other officers of the custom-house had been mem- bers of these committees during the past four years; that Price's contri- butions had not amounted, to his knowledge, to^500; that there were other collectors besides himself; the members of the finance committee were all collectors ; that he declined answering how often he had collected from Mr. Price ; that his instructions from the finance committee were, that he should not inform any person from whom or how nuich he col- lected from any person; and that these instructions were the reason why he declined to answer several questions of the committee, in as far as he thought it would be a violation of confidence. •Thus, though it was very apparent from the testimony of this witness that Mr. Price iiad contributed something to party and political objects^ yet what amount he liad paid to tlie seven or eight collectors of his party for such objects, whilst he was an officer of the Government and a de- faulter, could not be ascertained by reason of tlie secrecy enjoined upon these collectors by the general or finance committee of the party. The committee further report, under the head of general facts material to characterize the late defalcations at New York, that the following tes- timony shows, 1st. The whole amount of upecie collected at the cnstom- huuse of New York dnring the entire period of the saspensioji oj specie payments, 7ca6 less than the svni of $ I r>0, 000, and (f that sum. but ;S70,000 was carried to the credit of the Treasurer (f the United States; 2d. That, during the suspension of specie payments, the Treasury De- partment had to send from W\ashington city to the collector at New York drafts for specie to pay debentures and expenses of his office ; 3d. That Mr. Swartwout, during the suspension of specie paynients, notoriously received a large portion of the revenue coUecled at N(i\v York in hank notes which were not allowed by the Department to be carried to the credit ol the Treasurer of the United States; and -Ith. That this receipt of bank notes not carried to the credit of the Treasurer of the United States, must be regarded as an important cause tending to aid Mr. Swartwout in abstracting the public money ; and 5th. That the bonds contained in the list of Phillips, in document 13, the receipts of which Mr. Swartwout Ken. No. 313. 253 never debited himself with as paid during the first quarter of 1837, and which constitute the chief item of his defalcation, were never suspended either by the order of the Secretary of the Treasury or by the act of Con- gress of October, 1837, and were actually paid before the suspension of specie payments ; and thus ihe excuse of the Department for not detect- mg the defalcation of Mr. Swartwout's bond account, founded upon the ■confusion arising from the suspension of the payment of duty bonds, utterly fails. The testimony is ae follows: Joshua Pkillips was sworn as a witness. Examined by Mr. JVisc, Question 1. Were the bonds included in the list kept by you and con- tained in document 13, herewith handed, and chiefly payable in the 1st and 2dquarters of 1S37, paid to Mr. Swartwout? Answer. All the bonds included in the list kept by me, and contained in document No. 13, were paid to Mr. Swartwout. Question 2, Were the bonds included in the amount of difference between the sum of that list of bonds, §597,331 63, a.nd the sum of ^646, 754 83, (the alleged deficit of Mr. Swartwout,) paid to him, and, if not, to whom'' Answer. The money for all bonds collected were, in each and every instance, paid over to Mr. Swartwout, and the above ditference was paid to him. Question 3. Were those bonds paid at maturity ? A/isioer. Inconsequence of the business of the custom-house having got be!iindhand,the bonds were not made up (by ascertaining the amount of each, &c.) in time to be sent to bank for collection, and they were col- lected at the custom-house; and, generally, the bonds contained in list of document 13 were paid after maturity. Question 4. How long, generally, after they were due, and in what months of 1S37, were they paid ? Ansv>er. The bonds were paid, generaUy, from ten to twenty days after they became due, and in the months of January, February, March, April, and May, 1837, All were paid previous to the suspension of specie payments. Question 5. Was the payment of any of these bonds suspended by th€ order of the Treasury Department in May, 1837, ujuil Congress was assembled in the September following? Answer. None of the bonds contaitied in said list were suspended by any order, from the Treasury Department. Question 6. In what kind of money did Mr. Swartwout receive the 5imounts of bonds and customs after the suspensi«n of specie payments? Answer. For some time after the suspension of specie payments by the banks, Mr. Swartwout directed the cashier's department to receive the notes of the hunks in this city in payment for bonds and customs •, and that course was pursued until the issue of Treasury drafts, and, occ;ision- Ally, during the whole time tliat Mr. Swartwout remained in office. Question 7. What amount did Mr. Swartwout receive in bank notes? 254 Hep. No. 313. rin.siccr. Previous to liiC issue' of Treasury driiAs, the wliolo amount coliecteil was received iu bank iJ0te5>. The jsarticular amovuit 1 caunot state. The ainouut of specie received (hiring the suspension was about Sl50,0C0, and of that amount 370,000 was transferred l>y Mr. -Swartwout to tlie Treasurer of the United States. Question S. Was not the whole amount of bonds included in your list of bonds received by Mr. Swartwout ui 1K"7 paid to liini in bank notes? .htsu'c?'. The whole auiount vv'as paid in bank notes. Qucslion 9. Were tliese bank notes, after the suspension of specie pay- ments in May, allowed by the Department to be paid by Mr. Swartwout to the credit of the Treasurer of the United States ? t-insiver. After the suspension of specie paym(nits I am not aware of iMVf moiiey being transferred to the credit of the Treasurer of tjie United States, except ^70,000 in specie. Que.siion 10. Please state, categorically, whether the Department au- thorized, or iu anyway, directly or indirectly, permitted or prohibited the credit of bank notes during the suspension of specie payrnciuts by Mr., Swartwout to the Treasurer of the United States? Aiiswer. I do not know that the Departtnent authorized, or in anyway permitted or prohibited, directly or indirectly, the credit of bank notes during tlic suspension of specie payments to the. Treasurer of the United States further than (if my memory is correct) Mr. Swartwout having told me, some time after the suspension, that he had received a letter from W^ashington directing him not to receive any money on account of the United States, e>;cept of that description authorized by law. Queslion 11. Did not Mr. Swartwout, soon after the suspension of specie puymenis, i)ay a visit to Washington to obtain from the Depart- ir;enr an arrr.ngcmenl as to iho kind of money in which customs should be received ? ./Ltsiuer. Mr. Swartwout did, soon after the suspension, visit Wash- ington, and liis object was to make an arrangement us to the kind of money he might receive for customs. Question 12. U}K>n his return to New York, did he not, at a public rueeiing of merchants, and at all times after his visit to Washington, pub- licly and privately, announce that he would receive bank notes in pay- ment of customs ? ,/lnswer. Upon his return to New York Mr. Swartwotit did, at a public meeting of merchants, declare that he would receive bank notes in pay- ment of customs ; and upon every occasion wlien applied to by persons as to the description of money he would receive, his answer was, that he would take bank iiotes, and that he had told ihem at Washington that he would take the responsibility. Question 13. Was it not notorious in New York that. Mr. Swartwoufi was receiving bank notes in payment o{ customs ? .Answer. It was. Question 14. The Treasury Department, knowing the amount of pro- t'^:sted 'J'r(;asury drafts received at the custom-house in New York, and the amount ofspe(Mepaid there during the suspension of specie payments, must it not liave knov/n that Mr. Swartwout 7vas receiving bank notes, and must it not have had the means of knowing the amount of bank notes .he received? Rep. No. 313. 255 Answer. I do not think that the Treasury Department was aware of the total amount of specie received, as no regular returns were made of it. They knew the amount of protested Treasury draffs received. I;i- quiry was niad(! from Washinirton as to what, amount in specie could be placed hy the collector to the credit of the Treasury of the United States, and in three instanc(>s the ainonnt of $70,000 was so placed : and I be- lieve it may iiave been known at Washington that he was in the habit of receiving bank notes. Question 15. Was not the Hon. Levi Woodbury, Secretary of the 'IVeasury, at the ('ustom-house in New York during tlie summer of 183^, Ijefore Mr. Swartwout sailed for England ? If so, during what month } ,'lnswer. I saw a person, during the summer of 1S3S, (the month I do not know,) at the custom-house, and I v/as told it was the Hon. Ijevi Woodbury. I had never seen him before that lime. I do not know whether it was before or after Mr. Swartwout sailed for England. Question 21. Does the statement, contained in 3^our letter of Novem- ber 9th, 1S3S^ to H. D. Gilpin, Solicitor, as contained in Doc. 13, shovvintr the mode of collectmg bonds through the banks, apply to the bonds con- tained in your list of bonds taken by Mr. Swartwout, and not accounted for by him to the United States ? Answer. The statement contained in my letter of November 9, 1S38. to H. D. Gilpin, Solicitor of the Treasury, showing the mode of colioc'i- ing bonds through the bank, does not apply to the bonds contained in list taken by Mr. Swartwout, and not accounted for by him to the United States. These bonds were all collected tlu'ough the custom-house, and were never placed in bank. It is passible that a few of them might have been put in bank for collection and returned to the custom-house, and afterwards paid there : but the amount, if any, was very small. Question 23. Which were the banks the notes of which sencrally JMr. Swartwout received during the suspension in 1S37? Answer. The notes of all the batiks in the city of New York were re- ceived generally by Mr. Swartwout during the suspension in 1837, cixcept those of the Dry Dock Bank. Question. 24. Have not all these banks since resumed specie payments; and if their notes, received by Mr. Swartwout in 1837, had, after it was known that they were received by him, been ordered by the Department to be paid by him to the credit of the Treasurer of the United States, aufl been so paid by him. would the United Suites have lost a dollar upon bonds so received by him in bank notes ? Answer. All the l)anks in the city of New York have resumed specie payments ; and had Mr. Swartwout, after it was known he was rcceivmg bank notes, been ordered by the Department to transfer the notes so re- ceived, the United States woidd Jiothavc lost a cent in bank notes received by him, if he had made the transfer so ordered. Mr. ()s;den e.vamined hy Mr. Wise. Question 42. Were the bonds included in the list of bonds kept by Phillips, and contained in Doc. 13, paid to Mr. Swartwout ?. •'Inswer. These bonds were all paid to Mr. Swnrtwout. Question 43. Were the bonds which were due and payable in the 1st and 2d quarters of 1S37 paid at maturity ? 256 Rep. No. 313. ,insiver. I believe they were all paid at maturity, Avith some excep- fi(M)s, which were sent to Mr. Price for prosecution. Question 44. Was their payment suspt nded or affected by the order of the Treasury Department in May, 1S37 ? ,Insicei'. The payment of these bonds was not affected by the order of the Treasin-y Department in May, 1S37. Quest iun 45. What kind of money did Mr. Swartwout receive for cus- toms after the suspension of specie i)ayments ? ^inswer. Mr. Swartwout received in payment Treasury notes, bank notes, checks on the banks, and gold and silver ; the principal part in bank notes and checks, and Treasury notes when they were below par. The amount of gold and silver was very small, it never exceeded §7,000 any day, and seldom amounted to that sum ; generally two to four thou- sand dollars. The whole amount of our receipts in specie during the suspension of the banks, was about one hundred and fifty thousaiid dol- lars. More than two-thirds of our receipts were in bank notes and checks. Question 46. \Vere the an'iounts received in bank notes by Mr. Swart- wout, during the suspension of specie payments, placed to the credit of tlic Treasurer of tlie United States ? ^'Inswer. The amounts of bank notes received by Mr. Swartwout were not passed by him to the credit of the Treasurer of the United States. Question 47. Must the Department not have known then, from his quarterly accounts showing the whole amount received by him, and the amount placed to the credit of the Treasurer of the United States, that he was receiving a large proportion of the customs in bank notes, which were not allowed fo be carried to the credit of the Treasurer ? tlnsu.^er. Certainly, had they examined his quarterly account, they could have ascertained the amount received by him, as well as they could have become accptainted with the amount of receipts in bank notes which were not carried to the credit of tiie Treasurer. Question 48. Whilst the quarterly accounts of Mr. Swartwout for 1837 showed that large balances were in his hands, did not the Treasury De- partment repeatedly, during the suspension of specie payments, send to Mr. SwartwoiU drafts for specie to pay debentures and expenses of his officers, &c. ? .e words 'defalcations which have occurred among the collectors, receivers, and dis- bursers of public money, and other ])ublic oliicnrs, since the 4th day of March, 1829,' and insert the words 'the late defalcations in the custom- house at New York and other places', and any other defalcations prior to 1838, and not heretofore reported by the Departments to Congress and the countr}'.' " The amendment was rejected, and the original resolution adopted. The committee being impressed with the belief that the great object of the House in raising the committee was to investigate the causes and ex- tent of the dedications, at the custom-house at New York, deemed it proper to adjourn to that city, where the defalcations had arisen, the witnesses or actors in the same n^sided, and the documentary evidence was to be found. In pursuance of this determinatioji, the committee as- sembled, on the 24th Jaminry, in the city of New York, and, without loss of time, engaged in the arduous duties of the investigation. At the sug- gestion of one of the members, whether th.e conunittee were to carry on tlieir investigation open to the public at large, it appeared to be tacitly agreed that such a course M^^s calculated to embarrass the committee, as they iiad no power to suppr(>ss disorder, in case any should arise; but no intimation was given that the proceedings of the committee sliould Ik; ficcreL In the me;in time. paragraj)!is appeared in the newspapers of New York, statiug the committee sat with closed doors. It was evident, also, froni the wide and extended range of the investigation, tiiat many per- sons were likely to be implicated, both oliicers of the Government and private citizens." The undersigned believed that the committee, though a select committee, was not -a secret comnii/lec ; th.at the House, when it passed the resolution, never intended the prt^ceedings of the conniiiiiee to 1)6 kept secret; that justice required pronq)t and r(/rl.>/ Doficc sliould be, given all persons accused; that the charge should be made in a public manner, the accused confronted with the accuser, and that secrjet inqui- ries were unknown to the constitution, and alien to the practice and feel- ings of the American people. The minority of the committee entertain- ing these sentiments, and not knowing tiic views of the majority upon this interesting snbj'et't of secrecy ; and finding (though other persons wer<- excluded) two or three witn(>sses at one and the same time were adniitted mto the conmiittee-room, thereby subjecting the proceedings of tlie com- mittee to misrepresentation, and the action of individual members to sus- picion and calunmy. deeuif^d it proper if) bring the subject, before the committee in a substantive form, and to call for a di"^tinct expression of opinion, by proposing the following resolutious : Whereas all proceedings of an inquisitorial character, and conducted in secret, are at variance with the principles of rcpubHcaii governuient and abhorrent to the feelings of the American peoph?: And, as justice demands that all persons, wh(4her they be o,ffi':'crs of the Government or private eitizens, "wh.o, in tlie course of this investiga- tion, may be implicated or charged with official misconduct, or being con- 261 Rep. No. 313. corned in aiding or abetting such misconduct, should have immediate and prompt notice of the charge, so tliat, if innocent, they may repel it ; and that, whatever may be the nature of the charge, it is but reasonable and just that the same be jniblicly brought forward and publicly answered: And, as the members of the cornnnttee have no reason or desire to dis- guise or conceal from public view ail or any of its actings and doings in the exercise of the delicate and responsible commission imposed on them: to the intent, therefore, of liaving no misunderstanding on this snhject, Be it resolved, That it is the opinion of this committee that, though a aelect conuuittee appointed by the House of Representatives of the United States, it is not a secret committee ; that, though invested with the power of inquiry as contained in tlie resohuions of the House, that power ought to be exercised in an open and public manner, and should be not only free from any direct charge of concealment, but from the remotest suspi- cion of it. »dnd be it Jurther resolved, That all the proceedings of this committee shall be open and public, as being the mode, in the opinion of this com- mittee, best calculated to attain the ends of justice, to satisfy the just ex- pectations of the people, and to protect the rights and privileges of Ameri- can citizens. Which, after an amendment offered, were all finally laid on the table, to the astonishment and mortification of the undersigned, and, no doubt, to the surprise of the people of the Uniied States. Under these extraordinary circunistajices, the proceedings of the com- mittee being secret or public, according to the judgment, discretion, or caprice of witnesses or members of the committee, the investigation was carried on. Numerous witnesses were examined as to the extent of the defalcation. The uudersigued will not go into a detailed statement of the heads or items, such as forfeitures, penalties, bonds, &c., upon which Swartwout ])ased his peculations, ])ut refer the Hoase to the journal of the commit- tee. They will simply remark, that the bond item gave the facility and laid the foundation of the i)rincipal part of the defalcation. These pecu- lations commenced at an early period of Swartwout's official life, and Avent on, increased and increasing, until its close. The art and manage- ment with which it was concealed will attract attention. One occurrence referred to in the testimony is not the least remarkable in this exiiaordi- nary ailair. When Swartwout, in \'6'M, was renominated by the then President of the United States, the nomination was referred, as usual, by the Senate to a committee, which comnnttee was composed of a majority opposed to the then administration. In the investigation of Swartwout's accounts before that comniitlee, suspicion arose that he was in default. Air. Shultz, the then auditor of the custom-house, a witness examined by this cormnittee, was called upon by the committee of the Senate to aid them in the examination and to give them intbrmation in regard to Swartwout's accounts; and after, it is presumed, a thorough investigation, the committee reported favorably to the Senate, and the appointment was confirmed by the then existing Senate, composed of a majority of Senators opposed to the administration ; thongli there was at this time a deliilca- lion to a considerable aniount known to Mr. Shult/, but not comnuini- cated to the committee of the Senate, as will be seen by reference to the following questions and answ-rs: Rep. No. 313. 265 Question 2G. Did you know, when you were before the committee of the Senate in lSo4, that Mr. Swartwont liad not paid over to the cashier the sum ot'more than §30,000 received by him for Ibrfeitures? ..dmiccr. I knew that Mr. Swartwout had at that time more than jS30,000 for forfeitures whicli he had not paid over to the casliicr. Qucition 27. Did you inform the committee of the Senate, or any offi- cer of tile Treasury Department, that Mr. Swartwout had not paid over the money received by him ibr forfeitures ; and, if not, why ? */insivcr. I did not, becnusc [did not think it my duty. Question 33. Why did you not regard it as your duty to inform tiie Secretary of the Treasury, or the committee of the Senate, that Mr. Swart- wout had not paid over the money received from the marshal for forfeit- ures ? ^insiver. Because wo clerks of the custom-house consider ourselves fis in the service of the collector, and not in the service of the United States. The "collection law" does not seem to regard the clerks of the collector as in the service of the United States, as the markers and weighers, &c., who are appointed by the Treasury Department. We have always tlionght ourselves the private assistants of the collector. It was my duty to ren- der th» accounts truly, and credit the United States truly, as I did; but not to inquire into tlie private transactions of the collector. These answers afford a valuable instance of custom-house morality and patriotism. That the defalcations should have been so long concealed from the De- partment and the public, though at first a matter of surpri'-e, will create no great astonishment wlien Mr. Shultz's testimony is considered. The maimer of keeping the accounts in the custom-house was calcu- lated to effect the object of concealment. The auditor of the custom- house and the naval olficcr, intended as checks upon the collector, were kept in total ignorance as to the true state of the accounts; and, as the Treasury Department depended on their statements, it was equally igno- rant. Two of tiie witnesses, Ogden and Phillips, cashier and assistant cashier of the custom-house, say, they f:e(|uently made no entry at all in the cash- book, of moneys abstracted by Swartwout for his private expenses. Wheti bonds were paid, no credit was given for them The cash-book being in the possession of these individuals, they furnished such statements to the auditor as suited their purposes, and concealed the accurate and true state of the account. Some effort was made in the course of the investigation, to show that Swartwout always made to the Department at Washington true and ac- curate statements of the u^;s!;ref^(ite amount of his accounts, and thereby drawing an inference, that if they had been carefully examined the de- falcations could soon have been detected. The undersigned are of opinion such is not the fact, and that it was scarcely possible, under any circum- stances, to make the detection in any other manner than by the personal inspection of the bonds and the books of the custom-house. On this branch of the subject we beg leave to refer to the testimony of Mr. Woodbury and the First Auditor at Washington, as contained in the journal. Mr, Fleming, the auditor at that time, and now auditor of the custom- house, (a very respectablG and intelligent witness,) testifies that he had 18 266 l^ep. No. 313. Sfiispicions in Jnne. 1837, that there was a deficiency in the bond account: he communicated the i^uspicion to Mr. Pliiliips, the assistant casiiier, who answered hiin in a very laconic manner, "tliat credit was given in the cash-book lor all the bonds (hat Avere paid ; tlic rest were in suspense." He also suacfc', that though the accounts ol" Swartwout transmilttd to the Department at Washington contained a true and accurate statement of Jhe uggregdit^ uDumntc, there was a deficiency and concealment of the true cash balance^ as was afterwards discovered by the examination of ik\Q cash-book of the custoin- house, in a sum exceeding six hundred thousand dollars. In this manner the fraud was carried on and kept secret. Mr. Fleming also states, that but for tlie suspension of the pay- ment of the bonds, and specie payments by the banks, tlie frauds could 3101 have been carried on without exciiing suspi'-ion and loading to de- jection. Great credit is undoubtedly due to the present collector and a^uditor of iiie custom-iicuse for making the discovery as early as it was niade. The urgency of the former to liavc his accounts settled, and prepared tor trans- mission to Washington, in a great degree ]»roduced and hastened the development. J?ut for this circumstance, the combination and conspiracy existing in the custom-house to defraud the Government, would have had She etfect to conceal it a much longer time. It may be confidently asserted, that under the existing laws, and, in- deed, under any safeguards that may be established to protect the public purse, vrithout honor and integrity in the public officer it may and will %% plundered, and the fact concealed for a considerable time without the possibility of discovery. Tlie business of the custom-house at New York is so various and com- jsilicated, that, vmder the provision of the act of Congress, the collector is allowed three months after the expiration of eacli quarter to make his returtis; frecpiently, from necessity this time has been extended to four ifioiiths; two or three months are consumed in the i\nditor and Comp- iro'ler's oflicos at VS'ashington in auditing and settling these accounts. Until this is done, the defalcations cannot bo certainly known ; so that they may be concealed from five to seven montlis, and that under the operation of the law. liy reference to the journal, it will be seen that there is some discrepancy Bi the testimony on the subject of the extent of the loss. Most of the witnesses agree that the amount of defalcation corr :sj)onds with the state- ments iicretofore made by the ollicers of the Government who were sent to New York, at or immediately alter tlie same was made known, and whose reports have been submitted to the House. The witness (Mr. Shultz) before alluded to, former auditor of the cus- troii-liouse, and who for a long period of time filled that station, reduces Ly his testimony the amount in a considerable degree. The House has before seen what reliance should be placed on the evidence of Mr. Shultz. As additional evidence of the corjfidenee to be given him, the journal is reibrred to, where Mr. Shultz states that the weekly returns made to the Secretary of the Treasury under the regulation of the Department m- chideil the items forfeitures and penalties, and which, in his opinion, would have enabled the Secretary in fifteen, minutes to have detected the defalcations, so far as those items are concerned, though testified to ■with great confidence, and with an apparent knowledge of the fact, is Rep. No. 313. 267 totally disproved by the chief cltjrk of the Treasury Department, and the docuiiieutary evidence derived from that Department, to wit, Uie weekly returns tlifniselvcs. Mr. Shultz is also a very aged man, intirm in body and mind, and, like most old persons, better able lo give a clear and dis- tinct account of transactions of long standing than recent occurrences. But, whatever may be the accurate amount, the ostensible sum total established by un([uesiionab!e teslimoiiy is very large. The actual or real amount, however, lost to tiie Government, concerning which no inform- ation can be obtadned, it is impossible to say, and can bo only a subject of conjectiu-e. One fact broujdit forth by the investigation is of a remarkable charac- ter and deserves notice. Mr. Thompson, the cashier of the Bank of Ameri- ca, (then one of the deposite banks,) states that checks of different amounts, some for very large sums, were indiscriminately drawn by Swartwout or his depntie'}, and paid by tlie bank. This practice, dangerous at all times to the Governn:ient and the collector, was peculiarly hazardous under the administration of the late collector, whose business habits did not qualify him for a strict scrutiny into the fiscal atfairs of liis office. By it, an oppor- tunity was afforded and temptation given to peculation in the custom- house. The causes which combined to produce the defalcation are various : The first was the unfortunate appointment by the President and con- firmation by the Senate, for two successive terms, of a man like Swart- wout, who, from habits and pursuits, was totally disqualified to discharge the duties, of collector at New Vork ; a port t!ie most important in the Union, and where one-half if not two-thirds of the revenue of the Gov- ernment is collected. The second was the disposition of Swartwout to engage in large and haz- ardous spectdalion=5 — a passion the most lasting in its excitement, and most disposed to increase by the food it feeds on ; and in an ofiicer of the Government intrusted with large sums of, money, the most dangerous in its operation upon him as an individual, as well as the Government. There is much testimony on this head. Some of the witnesses best qualified ;o judge — the brokers of New York — state, in technical language, he was a s^reat operator in stocks in ^Vall street ; like all business of this description, it was liable to great fluctuations, Swartwout sometimes win- ning, at others losing large sums of money. The evidence as to actual loss or aain is by no means satisfactory. Tlie third cause which contributed, in some degree, was the want of a regular and periodical examination of the bond account in the Audit- or's odice in Washington. One of the witnesses, and a clerk in that bu- reau, says the bond account, prior to the defalcation, had not been exam- ined since 1832. Before that time it had been the practice in the olfice. Why it was abandoned he knew not, unless from an opinion it was not necessary, or that there was not a sufficient number of clerks in the office to discharge the duties, at all times very onerous; there being, at a moderate calculation, not less than 30,000 bonds taken in a year in New York alone. liut whatever may have produced the abandonment of the practice, it was calculated to lead his successor in office into error: that successor would naturally follow the practice existing at the time in his l)ureau, as the one adopted from experience, and found to answer the public exigencies. No blame can, therefore, be attributed to the present 268 Rep. No. 313. First Auditor, lie having been, previous to these occurrences, but a short time in otiico, and, of course, not well qualilied to judge of the ))ractical utility in this particular branch of his duty. On iliissuliject we beg leave to ret'cr to his lostimony as contained in tlie journal. Thefimrfh cause was the non-execution of Swartwout's official bond for a great length of time after his last appointment in 1834. The bond bears dale in 1S3 l,bnt remained in the custom-house unexecuteduntil 1837, when it was ceniiied by the district attorney of New York, Mr. Price, and the Coiuptrollcr at Washington. For nearly three years no bond of the collector of iNew York, the principal port in the Union, was in the Comptroller's office ; and the collector was left to carry on the great fiscal operations of the c*istom-house without any security, except that based upon his own responsibility. As to the sufficiency of the security afforded the Govern- ment by the bond when executed, that is a subject not susceptible of pos- itive proof, imtil tested by legal decision, and must remain a pnatter of speculation and o])inion. Should the security in the bond be hereafter found insufficient, it will be attributable to Price, the district attorney of the city of New York,, where the sureties resided, and who, before he certified the bond, did make, oi ought to have made, the necessary inquiries as to their pecuni- ary responsibility. The bond, though executed at so late a period, will protect the Gov- ennnent as far as the amount extends ; a large part of the defalcation hav-- ing taken place after its.exccution, and theretore embraced by it. It is true, little security will be afforded by it to the Government, when the penal sum contained in the bond is con>pared with the large amount of the defalcation ; and had a regular account of the bonds been kept m the Auditor's office, tliere is very strong and conclusive testimony to show it would have iieither prevented nor detected the defalcation. The bond of Swartwont not being executed and deposited in the office, nor any entry of his appointment as collector made by the Comp- troller of 1834, was such a want of ofiicial diligence as no one could have sup[)OS('d or anticipated, and could not have excited any suspicion in the mind of his hmncdiate successor (not the present acting Comptroller, whc»' came into office after the discovery of these defalcations,) so as to induce him to ord(T an examination; he took it for granted the usual course had. been pursued in relation to Swartwout's appointment and bond. The neglect, therefore, of the former Auditor and Comptroller, in these par- ticulars, is strange and unaccountable. The only excuse for it is to be ibund in the fact, that, a short time anterior to these occurrences, and long before, the heads of these bureaus were two aged men, incapable, from physical and mental infirmities, to dis- charge the duties im})osed on them with the diligence and strict supervi- sing attention that these important offices demanded. The evidence on the journal on this subject is very strong. The retention of aged persons in olficc who have grown old in the service of the state, is an evil inci- dent to all Governments, and more particularly to our democratic one. To dismiss an officer under such circumstances, is a harsh measure, and Well calctdated to shock the feelings and enlist the sympathies of the peo- ple ; to retain him when incapable of performing his functions, is dan- gerous to the secnrily of the public treasure, and injurious to the best in- terests of the people. Better would it be to let the civil officers of Gov- Rep. No. 313. 2G9 ernment who have laithfuliy discharged their duty tor many years, retire at a certain designated period ot' Ufe upon a pension, than to have them remain in ofliee but the sliadows of themselves. Upon the |)rinciple of economy alone, so dear to the American people, the course suugested would be highly advantageous to the country. The fifth cause was the irregular and loose manner in which the whole business of the custom-house was conducted, (and which has Iteeii advert- ed to before in this report ;) and from the fact that the naval otFicer who, imder the laws, was intended as a check upon the collector, has not, in the execution of his functions, supervised the accounts with that care and diligence tiie impoitaiice of the subject demanded. 7'i^e sixth cause is to be found in a practice grown up of late years — the keeping by the collector wliat is termed a "suspense account," under which head he retains large sums of money to meet protests and suits upon duties overpaid, &c., and which, for his own security, he is in a great measure compelled to retain; the courts oi justice having determine^ in such cases that he is personally liable. Whether these decisions are founded on true and just principles of national policy, the undersigned will not undertake to decide ; but, they may be |)ermitted to remark, the sooner there is som.e legislative action on this subject, the better for the country and the collectors. The seventh cause was the convulsion and total derangement produced in the business of the custom-house by the suspension of the paymtMit of bojids by tiie Government, and the suspension of specie payments by the banks. The amount of bonds operated upon by these causes are con- tained in the answers of Mr. U'oodhury,'^ these u'ords: Question .'37. What amount of* bonds were due. or running to maturi- ty, a short time before, at the time, and during the time, of the convulsion produced by the sus[)ension of specie payments by the banks, and coming under the inslruciions of the Solicitor of the Treasury, in May, 1837? ^Insiuer. In reply, I would sate, that the amount of bonds falling due lietween the 1st of May and thc.lsl of October, 1S37, in the United States, %vas, prob.ihly, from five to six milhons. I have not exannned to see the exact amount ; bnt of those, some were put in suit, and neither paid nor postponed under the instructions of the Solicitor, in May, 1S.'17, and others were paid without suit or postponement; so that the ainoimt post- poned under these instructions was estimated to be not far from four mil- lions of dollars. Question — . W'hat amount of bonds came under ilv provisions of the acts of Con2;ress of 1S.37: the one produced by the fire in New York, a!id the other produced by the suspension of specie payments by th« banks? ^nsivev. In reply, I state, that the postponements actually made under the two acis in Octob .r, as to former bonds and merchandisi' on which cash duties had accrued, are estimated to have been from four to fcnn- and a half milhons. Tlie amount coming witliin the operation of relief asked and granted on account of the fire, is supposed to have been about JS 1,063.000. As also to the following question : Question 1. Please stale, should a combination exist between the dis- trict attornev ani the collector to defraud the Government, by placing 270 Kep. Xo. 313. bonds which have actually been paid in liis weekly account, transmitted to your Department, under ihe head of bonds suspended, or bonds in suit, if there are any means in your power, as Secretary of the Treasury, to make the detection, except by personal inspection and examination of the bonds at New York ? Mr. Woodbury answers in the negative, and gives his reasons in ex- ienso, as will be seen by reference to the journal. The suspension of specie payments by the banks, so sudden and unex- pected, at a period of profound peace, and under the appearance of great national prosperity, was well calculated not only to derange the bu iuess of the custom-house of New York, but did convulse the whole trade of this country, and, in its consequences, affected that of those states or kingdoms with whom we had commercial relations A contingency so extraordinary could not have been anticipated; and, consequently, there were no existing laws to protect the Government from its baneful effects. By rendering the acts of Congress in relation to the safe-lcecping of the public money a dead letter, it made the banks cease to be depositories of the public money; took away the authority of the Department to receive their paper in payment of public dues ; and, from ne.cessity, threw the payment of the bonds into the custom-house, and into the hands of Swart- wout and hi.j agents, unc mtrolled by any les^isUitive. jirovision, or any other safeguards tliat otherwise would have been provided to protect the public purse. It may be, and no doubt will be, said, that, notwithstanding this act of the banks, if their paper had been received by the Government, and the bonds still p lid in the banks, the loss, or a greater part of it, would not have been sustained. The u.ndersigned will not undertake to decide what would have been its ultimate effect. The legality and propriety of such a measure, as an act of the Govern- ment, is submitted to the good sense and intelligence of the American people ; the reason for the Secretary of the Treasury not adopting it, is to be found in the acts of Congress, and the ])ractice of the Government founded thereon, which prohibit the otHccrs of the revenue receiving in payment any thing but gold or silver, or its ecpiivalent. The Secretary of the Treasury was not warranted by law to receive the paper of these banks; if he had done so, he would have been liable to impeachment; and, from the known tcliiper of the times, would, in all probability, have been impeached. If authority to receive such paper had been given, it would have been not only a violation of the laws of the land, but dis- reputable to the office and degrading to the country ; it would have had a tendency to give otficiai countenance to this act of the banks, so unjust and highly injurious to the interests of the people, and calculated to fix a stain on the national character. If an option Iwd been left him, he could not, as a public officer, and a patriotic m.an, Ivave hesitated in looking to, and holding on in this great emergency, to the individual responsibility of the bondsman, rather than receive the paper of banks which had ta-' ken the law into their own hands ; had legislated for themselves, and themselves alone; and had violated the obligations of their charters and the faith pledged to the public. This cause, therefore, opened a field for those engaged in the frauds and peculations, by placing the money of the people in the liands of Swartwout and his subordinates, uncontrolled by Hep. No. 313. 271 law, and was seized upon to carry on a most daring system of robbery and plnnder. By reterence to tlie testimony, it will l>o seen the large defalcation oc- curred 01) the bond account, and in the first and second quarters of 1S37, a short time prior to and snb.seciuent to the suspension of speci;; payments by the. banks. The bond account, however, had been dcraneed, no doubt, in a very considerable degree, before 1837, by the renewal of bicid^ under the acts of Congress, occasioned by the fue in New Yoik, and advantage taken of it. The eighth cause, and one of tlie principal, was a combination of un- principled men, oillcers in the custom-house, to detVoud tlie Government and plunder the people. Without this combination Swartwout could not have concealed his frauds a day. certainly not a week. That men of former, good character and standing in society should have entered into the coiispir.icy, aiding and abetting Swartwout in his peculations of the public purse, is a subject not only of deep mortification, but a national, disgrace. It is a deplorable and remai-kable instance of the corruption of tlie tiiujs in wiiich we live. It becomes still more remarkable from the fact, that o:i3 of tie me i (P.iillips, th?. as-Jistaat cas'iier of the cus,om-h ouse) so aiding Swartwout in his pccmlations, when examined as a witness^ and the question was propounded to him by a member of the committee, " Why, knowing as he did that Swartwout was defrauding the Government, he did not give intbrmatiou to the Treasury Department?'' answered^ with grea-t coolness and composure, in conformity with the custom-house practice and the reason giuoi for it l)y Mr. Shultz, '• that he was the clerk of Mr. Swartwout, and did not hke to disclose the secrets of his employer;" apparently considering as a virtue his fidelity to a public officer, who, with the witness's co-operation and active agency, was de- frauding the people. These developments, and the inferences naturally drawn fro n them, must irresistibly lead the llousi to the conclusion thaE the safety of the public money iinporioasly demands that no officer of the custom-honse connected with its fiscd concerns should be appointed by the collector himseU', but should receive the appointment from the Government, and give his sole allegiance to the country. Other causes not known ma3^ and no doubt did, contribute to produce tlie defalcations. The subject-matter, however, both in relation to the extent and the causes of the delaleation, is still involved in some uncer- tainty. The character of the testimony is more than doubtful. Some of the witnesses, and those best acquainted with the liicts, were active agent.s, if not participators, in the frauds; the fountain, therefore, from which we derive our information, or the greater portion of it, is impure and defiled. No reflecting man, acquainted with the operations of the human heart and the springs of human action, will or can place much reliance in tes- timony thus characterized and stamped with the impress of fraud and profligacy. Each man, and tlie Mouse collectively, will give credence to it according to the degree of credulity he or they may possess; and, at last, a great deal must depend, like the mysteries of our iioly religion, upon the faitli of the individual searching for truth. 'I'he disposition Swartwout made of these enormous sums abstracted from the public coffers is an enigma not easily solved. The evidence fur- nishes no clew to it. The inconsiderable sum left in the hands of Ogdea, 272 Mep. No. 313. and the value of tlie real estate in dilTerent parts of the Union, form but. a very inconsiderable item on the credit side of the account; and some of the witnesses say Swart wout is now a needy man. That he should have been possessed of so little property, can only be accounted for on philo- sophical principles and the natural operation of the human mind. Money thus acquired is not long retained; it is soon dissipated in extravagancies that leave no trace behind them. Much credit is due to Mr. Hoyt, the present collector of New York, and the Solicitor of the Treasury, through whose instrumentality the money in Ogden's hands, and the security af- forded by the real estate, were obtained. The money, as Ogden testifies, was intended by Swartwout for other purposes, and would liave been so applied, but for the sudden arrival and unexpected and vigorous applica- tion of the Solicitor of the, Treasury to him, as agent of Swartwout, to pay the same to the United States. During tlie progress of the inve^^tigation, and before it had closed, in relation to Swartwout, a member of the committee submitted the follow- ing resolution : Resolvtd, That Mr. Hoyt, the collector, be required to furnish this comnjiftee with all letters to and from the Treasury Department and the collector of the customs at New York ; and, also, all orders and instruc- tions from the Treasury Department to said collector since the 1st day of January, 1837, up to Xh^. jyresent day. and the answers of said collec- tor, if any, to said orders and instructions, not already furnished to this committee. » This resolution afforded another instance of the construction given by the majority of the committee to the auth.ority contained in the resolution of the IJou.se, and opened a wide field of iii(]uiry, never anticipated by tlie House or the country. One of the undersigned, therefore, moved the following amendment : '■' Provided, The said letters, orders, and instructions have reference to the late defalcations embraced in the inquiry of this committee." The amendment was rejected, and the resolution adopted. Satisfied it never was the intention of the House by its resolution to authorize the conmiittee to go into the investigation of the actings and doings of all and every collector and disbiu'ser of tlie public money, charged or not charged with defalcations; and believing that, if siicii was the intention of the House, it had no constitutional power to invest the committee with such authority — for, though the House, in the exercise of its high parlia- mentary power, lias frequently^ raised committees to examine into al- leged frauds, it has never undertaken, by its sole autho/'it}/, to appoint a ej)m!nitfee as a fishing committee to travel tlnvHigh the country and collect materials for the accusation of the oUicors of the Government. So far from this, the undersigned liave always believed, in this freecoimtry, reg- ulated by law, the acceptance of an otHcc by an individual does not de- prive him of the rights of a citizen ; and before he can be called upon by the action of the Hou.se ■■/ Heure^.entatives nlom to defend himself, he must be charged with sonje offence — that, however expedient and proper it maybe to supervise the conduct of public officers, charged or not enlarged with ollicial misconduct, so far as the latter are concerned, it can- not be done but by a legislative act, passed in the forms [)rovid*jd by the constitution. Freedom consists in being governed by known laws, and not by the Kep. No. 313. 273 discretion or caprice of eitlier branch of Congress. Tiio officer of the Government, against whom no cliargc is made, however innocent, mnst be blind indeed if he does not see, his sensibility must he blunted if he docs not feel, that the iuqviry alone casts a shade of snspicion on his char- acter ; that, in pnbhc opinion, he is more than half condenuied by the act of the House. Such proceedings, if tolerated, are calculated to degrade the oliicer in his own esteem, and in that of the public; and the inevitable consequence is to drive from the service of the state every honorable man. To allow either House of Congress, by its action alone, to direct its scrutiny into t!ie conduct of this or that particular officer, without charge, allegation, or suggestion of misconduct, would be to usurp an authority not recognised by the constitution, and liable, in high party times, to great abuse. It would be an arbitrary exercise of power of no ordinary char- acter — similar to the .sic void of the Roman lady. It would be the con- centrated essence of despotism. For the purpose of testing this great principle, and ascertaining the sense of the committee on it, one of the undersigned submitted the following resolution: Whereas doubts appear to exist as to the power conferred on this com- mittee by the resolnlion of the House of Representatives ; and, as it is im- portant that a distinct expression of opinion should be given on the sub- ject, for the information of the House under whose authority we act, and the people of the United States: Be it resolved. That it is thc'deliberate opinion of this committee, that the authority conferred on them by the resolution aforesaid, is limited in its character; that it is confined to the investigation of the late defalcations, and to the actings and doings of the officers of the Government therein contained, against whom any charge is made, or suspicion of misconduct rests: but, that they are not authorized, by vh'tue of the said resolution, lo call upon all or any of the officers aforesaid, to exhibit their books, papers, accounts, and correspondence, unless some foundation is laid for the inquiry by a distinct charge, general rumor, or the suggestion of some member of the connnittee, upon his responsibility, that there is cause to believe there is misconduct in tlie management of the office ; that any other practice would be dangerous to the rights of individuals, arbitrary in its character, and in dnect conflict with the genius and jjrinciples of our republican Government. Tiie committee, so far from considering such a power was ever intended to be conferred on them, are of opinion that the exercise of such an unlimited anthorily by the House of Representatives alone would be a violation of the constitution, and the common principles of justice. Which was rejected. At a subse(|uont meeting of the committee, when the reading of the journal was in progress, the mover of the resolution proposed to amend it, by striking out the last sentence and substituting the following: "The committee, so far from considering any other power was intended to be conferred, are of opinion that the delegation, by the House nf Iiej>- resentatives alone, of an tinlindted authority to call on all officers, witli- cut restriction, would be a violation of the spirit of the constitution and the principles of common justice." It is evident the object of the mover was not to change the nature of 274 Rep. No. 313. the proposition, but to express in more distinct language tbe idea intended to be conveyed. This reasonable recjuest was inexorably refused, and the proposition itself not allowed to be inserted on the journal. It is sub- mitted, without furtlier commentary, to the cahii judgment of the House, and to the intelligence of the people — the latter " being seldom wrong in their opinions, in their sentiments never." By the rejection of that resolution, and the course pursued by the n-a- jority of the committee, it was manifest, to a common o!)servcr, the case of Swartwout and Price was to be partially, at least, abandoned, and a new field of discovery opened and entered upon. The undersigned, fully impressed with this idea, deemed it a duty they owed to the lionso and the country to have a distinct expression of opinion by the committee on the subject of the defalcations of Swartwout and Price, constituting, as the undersigned supposed, the principal object of the House in raising the committee. For this purpose one of the undersigned submitted the following reso- Uuion : Whereas, under the resolutions of the House of Representatives, one of the great objects was the investigation into the causes of the defalcations of Swartwout and Price ; and as the visit of the committee to New York was to attain that object, (the persons and papers being there to enable them to make the necessary examination into the said canscs;) and as the public mind has been greatly excited on the subject, and looks to this committee lor a thorough investigation into the actings and doings of the persons above mentioned : Be it resolved, That this committee will proceed, with all despatch, to investigate the case of Swartwout, in which they have made considerable progress; and, wlien that is complete and ended, they will take up the case of Price and give that a thorough investigation. Which resolution was laid on the table. The call, under the resolution before alluded to, was made on Mr. Hoyt, the present collector, for papers and documents in relation to his official conduct. He responded in a written communication, and, among other matters, asked if the committee considered him as a defaulter, and embraced in the resolution of the House of Representatives. The repli- cation was by a resolution in the following words: Resolved, That, in response to the letter of Mr. Hoyt, of tlie 28th in- stant, the chairman be histructed to call upon him again to furnish this committee with all letters not heretofore furnished from the several offi- cers of the Treasury Department to the late and present collector at New York, and from said collectors to said ofricersof the Treasury Department, since the 1st day of January, 18:37, up to the lllhdiiynfJanunrij, 1839; and also with all orders and instrucliuns from said oliicers to said collect- ors, and the answers of said collectors thereto, if any, not heretofore fur- nished, since the 1st day of January, 1837, up to the 17th day of January,. 1839. *^nd he it further resolved. That this committee cannot recognise any authority or right whatever in any collector, receiver, or disburser of the public money, to call upon" the committee," or "any of its members," to prefer or to disavow a charge of his " being a defaulter," before such olfi- c«r sends '• the correspondence" of " his office," when required, under the Rep. No. 313. 275 authority of the House of Representatives, " to send for persons and pa- pers," to enable its committee " to inquire into, and make report of, any defiilcations among collectors, receivers, and disbursers of the public monry, which njny now exist." Nor ctui this conunittee, or ''any of its members," report whether Mr. lloyt /.v o?" /.y not 7zo?i? a defaulter, until, by examination of the "persons and pa])ers" for which it has sent and will send, it shall discover "who are the defaulters; the amount of.defal- cations; the length of time they have existed; and the causes which led to them." And wlien the committee shall have found the facts embraced by these inquiries, or closed it.s investigation, it will make report thereof to the House of RL-presentatives. By this resoUuion, the House will perceive the o})inion entertained by the luajority of tlic romrnittee as to the extent of their power, and the mode and mamier of carrying it into execution. The doctrine here avowed is, that an ofiicer of Government, against whom no charge is made of defalcation, and no suspicion expressed, is called upon to exhibit the papers of his office, not in compliance with the requisition of existing laws, but the ipse dixit of a committee, prolessing to act under the order of the House of Representatives alone, and who say to him '' tliey cainiot report whether he is or is not now a defaultery until, by examination of the " persons and papers" for which it has sent, aiKJ will send, it shall discover who are the defauUers. If the political doctrine contained in the resolution is the doctrine of the House of R(;presentatives, it is imj)ortant it should be known to the peo- ple. If it be WMOhg, they will put their mark of disapprobation on it; if it be ri^dit, they will give it the sanction of their opinion. But, until they do give it that sanction, the undersigned will consider the doctrine at va- riance witii every principle of liberty and individual right. Mr. Hoyt complied with the resolution, and furnished the papers; but demandetl of the committee, as an act of justice and matter of right, that they would l^o into a thorough investigation of his official conduct, prior to their departure IVoni New York. The House will see hereafter what attention was paid to this reasonable request. During tlie investigation, a practice was pursued in the examination of two, and sometimes a greater number of witnesses, at one and the same time, embarrassing to the com- mitiee, and calculated to produce great confusion ; also, a practice of al- lowing interrogatories to be given to witnesses, with the privilege of answering them at their Ijisure, and out of the committee-room. The injurious etl'ect of the latter practice v^'-as strongly exemplified by permis- sion given, under resolution, to Uavid S. Lyon, (who was afierw;iids pro- ved to be a dismissed officer of the customs, and stood in the relation of a public prosecutor of Jesse Hoyt, the collector,) to take the question or questions home with him, to be answered next morning. The resolution is in these words: Moved that David S. J^yon, a witness duly sworn, and now in attend- ance, and wh.o states that he is in ill health, and unable longer to attend thecommilte.! this evening, be permitted to take away with him the first interrogatory piopoundi.'d by Mr. Wise ; and that he be allowed to draw up his answer thereto in writing, and bring the same to the committee, for their consideration, at the meeting to-morrow morning. These practices, so novel and unprecedented, in the opinion of the un- dersigned, and so likely injuriously to allect the rights of all persons im- S76 Rep. No. 313. plicated in tlie iiivestigalion, it was deemed necessary to check, if possi- ble, by a direct vote of the conmiiltee. One of the undersigned moved the following resohitions: Whereas the practice adopted by the committee, of examining two wit- nes'^es at the same time, is calcniated to defeat the object of this investi- gation and the just expectations of the country, as well as to produce great embarrassment and inconvenience to the members, and particularly when, tmdcr the rule of examination, one member is compelled to examine two witnesses at the same time : and whereas the injurious effjct of this prac- tice is strongly exemplified by the examiiKition at the same time, and in the presence of each other, of two witnesses, to wit, Henry Ogden and .losliua Phillips, cashier arid assistant cashier, attaclied to the custom- house, and called upon to testify to the actings and doings of the cashier department : be it, therefore. Resolved, That, hereafter, one witness alone shall be admitted into the committee-room, wliose examination shall be complete and ended before the introduction of another. The other resolution was in the words following: Whereas the practice of permitting witnesses to prepare their answers to interrogatories out of the committee-room, and not in the presence of ttie committee, U|)on their suggestion of ill health, real or affected, is dan- gerous in its character, and injurious to the rights of those implicated, as the coTid'ict and manner o{ witnessos in giving their testimony are almost as important as the matter; and as the intention of the House of Repre- sentatives, from whom we derive our power, was to have a fair, honest, and impartial investigation: Be it resolved. That all and every witness, in the course of tliis inves- tigation, shall be sworn and examined in the committee-room, and in the presence of the committee. The first was rejected, a substitute being offered and adopted, as will be seen by reference to the journal — the latter laid upon the table. These acts need no further observation. We give the text : the commentary can be applied by others. While on this branch of the subject, there was another practice adopted by the committee, which, in the opinion of the undersigned, afl'ected the private rights of individuals : inquiries, not as to defalcations, but the dis- position by oflicers of the Goverinncnt of their own money for party or political purposes; as will be seen l)y a question to, and answer of, De Pr>/ster, also a dismissed officer of the customs. Qui'stion 3. While you were connected with the custom-house, do you know whether or not the officers of the customs were called upon to pay any part of their salaries, or any assessment or lax thereon, for party or political purposes ? If yea, state whether you have ever, and when you have made any such payment ; and state the motive upon which such payments were made. %,^nsw('r. The weighers were called on to pay fifteen dollars each for the support of the election; and when I declined, Mr. Vandcrpoel, the deputy surveyor, observed, that I ought to consider whether my Si, 500 per annum was not worth paying fifteen dollars for. Under the impres- sion that it was the price for iTiy situation, I paid it. The above occurred during the last spring election for charter officers. During my holding Kep. No. 313. 277 office, for about five years, I was occasionally called on, but always de- clined until within the last two years. In the pursuit of this object an occurrence took place in the committee- room, which was deemed of sutlicient importance to be spread upon the journal. The statement is in these words : Resolved, That the following facts be entered on the journal : Mr. Wise propounded to the witness, */2bruham B. Vandcrpocl, the ibllowiug question, to wit : Queslioii 2. Do you know whether the olHcers of the custom-hoase liave ever been called on to contribute sums of money to party and polit- ical objects; what olficers have been so called on; by whonj; for what amount, with or without regard to their salaries of oftice; when did tiu-y contribute; if they refused, was any intimation given that their refusal might occasion their removal ; what amount has been so contributed or collected, and for the support of what party, at any one election ? The witness took the interrogatory, without objection to propoimding the same, and proceeded to write his answer thereto on the paper attached to the question; and had written the following, to Vv'it: " I have known oflicers attached to the custom-house to have been called on for" — when Mr. Owens, member of the committee, interposed, and informed the witness that he was not bound to answer any interrog- atory relating to his private affairs: and, thereupon, Mr. Foster, ancither member of the committee, objected to propounding tlie interrogatory. The witness here commenced to tear otf what he had written, betbre ob- jection was made to the interrogatory. Mr. Wise prevented him from doing so, by forbidding the act. Mr. Foster insisted that the witness had the right to tear olt' what he had written, and tluit it was not his answer until i' was. complete and lianded in; and he asked the witness whether it was his answer, and he replied " it was not;" and the committee hav- ing decided that the interrogatory should be prO|)ounded,the said question by Mr. Wise was again handed to the witness, and he returnened a very great loss oil the stocks we had, and which were sold after our fiiilure by the parlies who had them under hypothecation :" and handed the tbregoiug answer to Mr. Owens, who, after reading it, told the witness he had not answered the question fully, not having stated the amount of Swartwout's indebt- edness. Whereupon, tliC witness replied, "that he would not wish to state that, as he had not bis counsel here, and the amount was yet to be settled between him and Mr. Swartwout." Mr. Wise then observed, in the hearing of the witness, that, as a judge 278 Rep. No. 313. in this case, lie felt it to be his duty to say to the witness that he had a riirht to dechiie answering a question relating to his priv;ite affairs. The witness, after some conversation between Mr. Owens, Mr. Foster, and Mr. Wise, took back his answer, and added the following words: '• As to the amoinit, I do not think it necessary to state it,"as it is a mat- ter of account between Mr. Swarlwout and oiu'selves, and has to be ad- justed when we come to a settlement with him." The subject is calculated to attract the public eye, and produ:e reflec- tion. It atibrds a reinarkable instance of the course pnrsued by the ma- jority of the committee ; the respect observed to the rights and j)rivikges of witnesses under examination before a committee regulated by no known iaws, but governed by the dictates of an arbitrary discretion. In the opinion of the itadersigned, the cpiestion propounded the witness had relation to his private affairs. The Vv'itness, V^^anderpoel, answered it in part; but as soon as he was informed of his rights and obligation's as a witness, he refused to complete it, and said it was not his answer, and wished to destroy it; it was, nevertheless, retained, as appears by the statements above referred to. The whole proceeding carries along with it its own commentary, and, without further observation, it is submitted to the House and the country. Whether a committee of this House, appointed under its extraordinary and discretionary parliamentary power, undefined uud undefinab/e, is authorized to go into the investigation of the private affairs of officers of the General Government in relation to their actings and doings as citi- zens of the State in which they reside, and having reference to their domestic elections, (the que.s/ion is general, nnd l3e Peyster refers to the charter elections.) is a subject of grave consideration. It assumes- an attitude that places it beyond the reach of mere party movements. It strikes at cardinal principles dear to the American people. It is the as- sinnption of a power not warranted by the limited constitution under which the General Government lives, breathes, and has its being. The doctrine of State rights is a mere mockery to the undcrstandmg, if this principle is warranted and acted upon. Admit it, and the accei)tance of ofiice under the General Government ipso facto denationalizes the indi- vidual as a citizen of New York, The right of inquiry involves the right to pass laws. If Congress can say the officer shall not have the right to use his money for one pm-pose, they may say he shall not use it for another. They may say he shall not attend the polls; and, putting the cap-stone to this politica} pillar, they may say he shall not vote at any election. Sanction this principle, and you have a consolidated govern- ment in all its forms. This doctrine, like others akin to it, m.iy be maintained by specious ar- gument and ingenuity ; but the people of thiscoimtry, as they have hereto- fore done in all proceedings affecting their lives, tlieir property, or politic^il rights, will not be guided by the refinements of learning, but ciinsult their understanding, and be governed by the plain dictates of common sense. The evidenc on the su!)ject of money spent for parly purposes, has refer- ence to the time of Swartwout as collector. The general conclusion de- rived from it is, that the practice is not confitied to one party, but pervades all parlies in New York. That it is the general, if not universal practice, the best evidence is afforded by the witness David S. Lvon, who, accord- ing to his own admission, belonged to both parlies, and is well qualified to testify to the fact. Bep. No. 313. 279 That the payment was not compulsory, bnt voluntary, is evident frona the answer of De Peyster, who says, tor three years out of five he con- tributed nothing. And there is no evidence he was proscribed by Swart- wout. With a view of putiing a sl,op to such inquiries, and to enable witnesses, particularly ignorant men, to know their rights and obligations, one of the undersigned oflered the following rrsoliition: Resolved, That every witness, upon being called to testify, shall be in- formed by the chairman that he is not obliged to answer any question upon his private afi'aiis, or the private atiairs of others. Which was rejected. The examination of this witness, David S. Lyon, an officer who had been discharged by Mr. Hoyt from the custom-house, had not progressed far before it was evident his intention was to criminate the collector. The undersigned considering the plainest principles of justice were violated by allowing the character and reputation of an important officer of the Gov- ernment to be attacked, as it were, in the dark, without his knowledge, and without the means of ascertaining the charges made against him, one of them moved the following resolution : Resolved, That Mr. Hoyt, the collector, be furnished by the clerk with copies of all the interrogatories and answers of David S. Lyon, a witness examined in this investigation, as far as he has made answer to them, and having relation to the conduct of said Jesse Hoyt. Which was adopted. Bnt this being considered too i^n^nt an indulgence, a reconsideration was n;joved and carried, and an amendment ofiered, as follows : Resolved, That Jesse Hoyt, the collector of New York, he forthwith sumjnoned as a witness ; and that, before he be examined, the interroga- tories submitted to David S. Lyon, a witness examined this morning, and his answers thereto, be read to him, if desired, or he be allowed to read them; and that lio ha.ve liberty to attend the committee during the exami- nation of any witness wh.o may be called upon to testify concerning his official conduct. The amendment was adopted ; and the resolution, as amended, was voted for by the undersigned as a dernier resort, or the same would have been lost. They beg leave to call the attention of the House and the country to this amendment — to this boon given to Mr. Hoyt in his posi- tion of collector, surrounded as he was by open and secret enemies in the shnpe of officers discharged by him, under an imperious sense of duty to the public and himsetf, from their places in the custom-house, and foreign importing merchants, who fancied they had been injured by him in the discharge of his duty as collector. They beg the House and the coiuitry to look at it in its two-fold asj^ect — as a siibpoena, and as an indulgence given to an American citizen who had his reputation, dearer to an honor- able man than life itself, at stake, and say "if these things can pass us like summer clouds and not attract our special wonder." Mr. Hoyt was summoned to appear forthwith, not as an ordinary witness, but in the double character of a witness and parly accused. For rapidity of movement and quickness of execution, it was more like a ivarrant than a subpoena. It was no sooner served thaji Mr. Hoyt was in the committee-room. Lyon's testimony, as far as it had gone, was read to him ; and he was instantly placed in the crucible of one of the 280 Rep. No. 313. members of the committee, who examined him for many consecutive ho 11 IS. We know not how others felt at the scene passing around them ; but, for ourselves, it was a subject of deep humiliation, and has left an im- pression on the memory not easily erased. In the progress of the inves- tigation into the official conduct of Mr. Hoyt, intimations were thrown out occasionally, in the committee-room, that the time had nearly arrived for the departure of the committee from New York. These intimations were warnirjgs not to be neglected. The evidence against Mr. Hoyt was in manuscript, though not printed ; it would, as a matter of course, appear on tlie jolu'nal. All that he had to oppose to it was his own testimony, and that of one or two other witnesses. Justice demanded that he should have a full and fair opportunity to introduce rebutting evidence ; pro- priety, and the peculiarity of his position, required this opportunity should be alforded liim in tlie city of New York. One of the undersigned,, there- fore, moved the following resolution: By reference lo the testimony of David S. Lyon, a witness examined in the course of this investigation, it appears charges of a serious character are brought against the present collector of New York, Jesse Hoyt, and intending to implicate Benjamin F. Bntler, the district attorney of New York ; and as justice requires the said Jesse Hoyt and Benjamin F. But- ler'should be heard fully in relation to the said charges, to enable theni to spread upon the journal of this committee the evidence upon which their defence may be founded, so that as the journal contains the poison, the antidote (if the testimony furnishes it) also should appear for the instruction of the House and the information of the people of America : Be it resolved. That this committee will not adjonrn its sittings in the city of New York, where the parties reside, and the evidence most likely to be found, until the said Jesse Hoyt and Benjamin F. Bntler have full and ample time to prepare their defence (if any they have) to the charges against them as officers of the Government of the United States. It was moved to lay the resolution on tlie table until the examinatioa of witnesses was completed; and it was so laid on the table. Mr. Hoyt himself, under circimistances more particularly developed in the journal, sent a written communication making the same demand. It was neither read nor received. The ground \\\)o\\ which the rejection of this application was based, was the refusal of Mr. Hoyt to respond to a question propounded to him until his communication was acted on. On the same day, at half-past four o'clock, P. M., the following resolution was proposed : Resolved, That this committee having accomplished its principal object, to inspect the books and papers in the custom-house, in coming to the city of New York, and desiring to inspect the books and papers in the Treas- ury Departm.ent at the city of VVasbington, during the short period of time now left to the further proseciuion of its inquiries, will adjouni this day at 10 o'clock, P. M., to meet at 12 M.,on Tuesday, the 12th instant,, at the room of the Committee on Commerce, in the Capitol ; and that {\\q witnesses henceforth be summoned to appear at that place till further- ordered. It was moved by one of the undersigned to amend the resolution as follows : Rep. No. 313. 28 1 Whereas, in the course of the investigations of this committee, witnesses have been introdnced and sworn whose testimoiiy has tended to charge the present collector of the port of New York with offi -ial miseondnct: and wliercas the said collector has applied to this ommitlee for permis- sion to be heard in relation thereto, and to go into a full investigation thereof, by witnesses to be produced by him, and reqnesting that such fnll investigatiyn may be had here, (in the city of j>ie\v York,) where he al- leges that the witnesses whom he wishes to introdnce reside: and where- as it is due to the fair and fnll administration cf justice that the said col- lector should have a full opportunity to rebut the charges thus made against him: and whorea.^ several witnesses are now under examination before this committee, the testimony of whom is not yet closed: and whereas^ from the fact that several witnesses have been under examination at the same time, the testimony of several of whom Is not now before the com- mittee^either in manuscript or in print, (a portion of the manuscript being m the hands of the printer.) the committee have not at this time the means of ascertaining the effect to be given to that testimony, or the na- ture thereof: and individual members of the committrje are consequently unable (untii a betler opportunity shall be afforded to examine said tes- timony) to determine how much farther the examination of those wit- nesses should proceed, or what othc' witnesses ought to be examined in this case, in order to a full understanding thereof: and wheraas we are satisfied that a full investigation of the ftcts connected with the defalca- tions charged can be better examined into here than elsewhere : therefore . Bes'jlned, Tliat this conmiittee will not fix upon a time for closing the testimony in New York unti] the testimony is at an end; and that the fixing the time for adjourning to Washiuiiton, by a res )lution passed be- fore the testimony is ended, will be calculated to deprive the. said collector of the right {wliich every man when charged has-) of showing that those charges are unfjunded. and of protecting his character from aspersion; will prevent the individuals of the com.nittes from examining and cross- examining such witnesses as they may believe ouirht to be examined; will set a precedent entirely new and arbitrary in the administration of justice, dangerous to the rights and privileges of persons who niay be charged with misconduct ; will be deciding a question, the propriety of which the committee cannot possibly know; and will be well calculated to destroy in the public mind all confidence in the results to which this committee may arrive. ResolDerl, That hereafter the time which the committee will be in ses- sion, shall be from ten o'clock A. M. till half past tour o'clock P. .M.,and from seven o'clock P. M. till half-past ten P. M. The amendment was rejected, and the resolution adopted. The determination therein expressed was carried into eff.^ct; and the committee was adjourned at ten o'clock at ni^ht, while one of the under- signed was in the act of examining the witness, David S. Lyon, and another in the act of submitting a proposition for subpoenas for Hoyt's witnesses. In consequence of these proceedings against Mr. Hoyt, the collector,, but a very. limited examination was made into the defalcations of Price, the district attorney; few witnesses were examined, and few facts of any importance were elicited notalready known. Tiie undersigned, however, regret a more thorough investigation was not made ; they are under the 19 282 Rep. No. 313. conviction, from the general complexion of the testimony during the whole investigation, that Price acted a very important part in these frauds and peculations. On the return of the committee to Washington, they resumed their ar- duous duties. Many witnesses were examined, and documents referred to, all of whicii are. incorporated in the journal, and part of it adverted to in this report. The subjects of inquiry were similar to those in New York, botii as to the extent and causes of the defalcations; and also the causes why the same were not known at an earlier date to the accounting officers at Washington. In pursuing the latter inquiry, it was necessary to go into an investigation of the peculiar duties required to be performed under ex- isting laws, practice, or usage, by the Secretary of the Treasury, the First Auditor, and the Comptroller. The undersigned will not increase the volume of this report by including in it all the evidence on this subject in detail, but beg leave to refer to the journal. They deem it proper^ how- ever, for a full understanding of the duties belonging exclusively to these dift'ere'it officers of the Government, in relation to the auditing and settling of accounts, more particularly those appertaining to the customs, to call t'ne attention of the House and the country to the following documents, and the questions and answers of witnesses examined'iipon die occasion, and in reference to this subject. The evidence of Mr. Yotmg, chief clerk in the Treasury Department. Question 3. Will you state how the Department of the Secretary of the Treasury is organized, legally and practically, in respect to settling the ac- counts of collectors and receivers? Answer. The power of adjusting and settling the accounts of collectors and receivers, in respect to the revenue from duties and lands, is by law vested in tlie accounting officers of the Treasury. Collectors' accounts are adjusted by the First Auditor, subject to the revision of the First Comp- troller; accounts of receivers, by the Commissioner of the General Land Office, also subject to l)e revised by the First Comptroller. The Secretary of the Treasury has no power as to the settlement and adjustment of these accounts, further than to make allowances for the expenses of col- lection in cases where there is no express legislation fixing allowance for such cxjicnses. That of Mr. WoodbKry, Secretary of the Treasury, to the following : Question 11. Am I to understand that you have never considered it to be your duty, and that you have never discharged the duty of superin- tending the reports of the First Auditor and the Comptroller; and that you did not know, and had no means of knowing, whether their reports were correct, or whether they had faithfully done their duty in adjusting and settling accounts? — is in these words : Answer. The reports of the First Auditor on accounts settled are, by law and usage, made to the First Comptroller, and not to the Secretary of the Treasury ; and the reports of the First Comj)troller on accounts settled, when the balances are considered suspicious or proper for suit, are wade ■directly to the Solicitor of the Treasury, and formerly to the law agent. Rep. No. 313. - 283 Neither in those settleiiiejits nor those reports does the Secretary of the Treasury interfere ; and it has often been decided by the Attorney Gt-.ncral that no oilicer of the Government lias a right to control or reverse tlie de- cisions of the accounting ollicers in making those settlements and reports. Extract of a letter dated Office of the ^ittorney General of tlw United States, Octolyer 20th, 1823, sii^ned William IVirt. "■ In the original organization of the Treasury Department, (vol. 2 Laws U. S., p. 48,) the duties of the officers are designated specifically. There was one Auditor and one Comptroller. The duty of the Auditor is declared to be to receive all public accounts, and, after examination, to certify the balance, and transmit the accoimts, with the vouchers and cer- licate, to the Comptroller for his decision thereon; with this proviso, that, if any person be dissatisfied therewith, he may, witiiinsix months, appeal to the Comptroller against such settlement. Here the rightof appeal stops;, 'there is no proviso for an appeal to the President. With .regard to the Comptroller, it directs that it shall be his duty to superintend the adjust- ment and preservation of all public accounts, to examine all accounts set- tled by the Auditor, and certify the balances arising thereon to the Regis- ter ; no right of aj)peal from his decision to the President." Extract of a letter, dated Attorney GeneraVs Office, April 5th, 1832^ signed R. B. Taney, " None of the acts of Congress prescribing the mode of settling ac- counts and ascertaining balances, look to a revision of the accounts by the President, except, perhaps, some laws passed for the relief of particu- lar individuals, in which the power is expressly given. The general laws upon that subject seem to regard the decision of the Comptroller as final, and require the Executive branch of the Government lo act upon it ac- cordingly." The reasons why the defalcations were not soonerdetectcd by the First Auditor and the Comptroller, to whom tlic duty of auditing and settling the accounts exclusively belonged, are given in their evidence ; and the general conclusion derived from it is, that it arose from the fraudulent manner in which Swartwout rendered his accounts, as fully stated and explained by the evidence, both in New York and VVashington, as con- tained in the journal, and to which we beg leave more particularly to refer. But little opportunity was afforded to go into the consideration of iho conduct of land receivers and other officers included in the resolutions of the House. The only evidence on this subject was the commnniration of the Secretary of the Treasury, already publislied, and some additional letters from said officers addressed to the Department ; no part of which having been placed on the journal as evidence in the usual fornj, the un- dersigned are unable to come to any definite conclusion upon this portion of the subject of investigation. During the whole investigation, and after a careful examination of the evidence since its termination, the undcrsigndl can see no just cause to cast censure upon the head of the Treasury Department for any want of diligence or attention in the performance of the duties of his high and responsible station. This untoward and unfortunate atiair, by which the country has sustained so much loss, could not have been prevented or 284 Eep. No. 313. controlled by nny efforts of his. The evidence is strong and coiivincing that the auditing oiid settling these accounts and detecting defalca- tions do not appertau) lo his Department, or constitute any of the duties imposed upon iiim ; tliey belong to separate and distinct bureaus over which he lias no control, and so deleruiined by the legal advisers of the Government. When the defalcations were made known, there is abun- dant testimony furnislied by the docilments that he made every effort and used every instrnn ent that the power of the Department over which he presides enabled him to use, for the recovery of the money; and that, since the occurrence, lie has adopted and enforced such regulations for the safe-keeping of the public money, as his limited power and the want of legislative action have enabled him to exercise. 'J'he duties of his station are not only various, but laborious ; they require talent, patience, and indus- try : these lie has devoted to the public service in the administration of the high functions devolved upon him as Secretary of tiie TreasiHy. It may be said with confidence and truth, his fidelity to his trust is un- questioned and unques-tionable — his purity known and acknowledged. As a public man, experience must have taught him, in high and violent party times, it he were "as puie as ice, as chaste as snow, he would not escape calumny." That the country has sustained great pecuniaiy loss, no man can doubt; that the national character has suffered deep humiliation and disgrace, no man can hesitate to admit. But losses like these are incident to all Governments ; no one is free from them. The annals of our own afl'ord numerous instances of pecidation, committed at every [)eriod of its short existence, under all and every administration, and all and every fiscal system which has been adoj)ted and carried, into practice — no matter who has been the fiscal agent — the Government has sustained loss; it must be so until man becomes honest. But, from our very misfortunes, we may derive benefits; these incidents, like storms, purify the stagnant at- mosphere; they may check for a moment, but cannot stop the onward march of the state to her high destinies. The lessons of experience will not be forgotten, and remedi-es must and will be applied to guard and protect the public purse. These remedies are, in the opinion of the undersigned — 1st. Persons to be a))pointcd under an act of Congress, whose duty it shall be, periodically, or at any time, under the direction of the Treasury Department, to personally inspect the books and papers of all officers in- trusted with the public money. „: 2d. To have all officers of the customs who, in the remotest degree, may be connected with the fiscal concerns, or intrusted with the public money, derive their apjjointment, not from the collector, but fioin the nomination of the President and confirmation by the Senate, or directly from the head of the Treasury Department. 3d. That all collectors, receivers, and disbursers of the public money be required to make their returns to the Treasury Department under oath. 4th. Making the embezzlement, by any officer, of the public money, a high peiKil offence. 5th. ^htking it a penal offence in any officer conniving at, knowing, or being privy to, any embezzlement of the public money, and not giving im- mediate notice to the Tnasury Department. No calm and dispassionate man can read the evidence taken by the "ommittee in the progress of this investigation, but will come to the con- Rep. No. 313. 285 elusion that the cashier and assistant cashier and the deputies of the cus- tom-house being indebted to Swartwout lor their offices, and subject to be removed by him, was one of the great causes of the peculation, and of its concealment. That the labors of the committee in this investigation will produce some good, is probable ; that it would have produced greater, and given more satisfaction to the public mind had it been conducted on more en- larged principles, we have no doubt. Be that how it may, we have en- deavored to discharge our duty to the House and to the coimtry. There is one occurrence, however, that took place in the investigation at Washington, of a remarkable character, and deserves notice. Mr, Woodbury, the Secretary of the Treasury, was called, and sworn as a witness. The first question propounded to him was in these words : Question 1. Have you seen, iead, or heard read or described, or been informed of aiiy portion of the evidence taken before this committee ? JJnswer. I have not seen, read, or heard read any of it; nor has it been described to me; nor have I been informed in respect to it, except what gentlemen in conversation may have suggested was probably the cliar- acter of some of the evidence ; but, whether correctly or not, I have no means of judging. If it be right that a man on his tricil should be informed of the charges made against him, why ask the question ? We know not what was the object in propounding it. Every man will draw his own conclusions. We deemed it at the time a most extraordinary question to be submitted to IVfr. Woodbury in liis then peculiar position. We believe it unprece- dented in the annals of criminal jurisprudence. We take this opportunity frankly to avow to the House and the peo- ple, had there been any evidence taken in New York tending to implicate the honor and reputation of Mr. Woodbury, or any other American cit- izen, and it had not been made known to him by the committee, we should, under the most solemn conviction of duty, of what is due to pri- vate honor and public virtue, and that sense of justice, to violate which would be to betray the best interests of the people, have communicated the fact. No human power could have induced us to remain silent. There is a zeal in politics as strong, though not so holy as in religion, that excites the passions, and leads us into error. It reverses the precept, and makes us do unto others what it will not permit them to do unto us. Fair and honorable conflict of parties invigorates the body politic, and benefits the state ; but. when party spirit assumes the character of perse- ciuion, it is a demon that perverts the understanding and corrupts the heart. The respect we have to the House, and our devotion to the people and the principles of liberty, have imposed on us the duty of giving this sim- ple narrative, not only of our acts, but the manner and ibrm in which they have been executed. In politics, it has been said, names mean things. It may be said with equal truth, in all political movements, forms mean substance. The people have a right to know not only what is done, but how it is done. The greatest guaranty of freedom is publicity. All which is respectfully submitted : GEO, W. OWENS, HENRY A. FOSTER, DAVID D. WAGENER. 'V r^' UNIVERSITY OF CALIFORNIA AT LOS ANGELES THE UNIVERSITY LIBRARY This book is DUE on the last date stamped below MAR 2 Vm DEC 10 1959 ^'F'f^ 2 j ^ v^ V w t Form L-0 20m-12,'3S(3386> ':4i« Il^- UCLA-Young Research Library JK649 1839 l'il!RI|!|nf''f'll'''|!.'|!||!||l1ITI L 009 611 450 9 JK 649 1839 UCSOUTiirR'.nr-iT,-! MPRARVFtriLITY AA 001 342 285 r(;\ fi ^^: \^ ^^ r / — / f ^ - e>" •'<3 /' V -'v V^ f " / \^' >>. " ^^^^