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 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'<pecting duty bonds outstanding, duty bonds in suit, &c., 
 and anticipating that similar calls will continue to be made at subsequent 
 sessions, it has been concluded, in order to facilitate this object, as also to 
 be in possession of more precise information, from time to time, of the 
 existing state of all custom-house bonds, to keep a register at the Treasury 
 of all such bonds, so that any information in relation to them, on those 
 points which may hereafter be required, can be given by this Department, 
 without recurring in the fijst instance, as heretofore, to the collectors of 
 the customs. 
 
 " To make this register complete, it will be necessary to obtain from the 
 several collectors lists of the bonds which have been taken in their dis- 
 tricts, respectively, and which may remain due and un|)aid on the 30th 
 September next. 
 
 "These lists you are requested to furnish, accordingly, with as little 
 delay after that day as practicable, observing the accompanying forms. 
 
 "The usual quarter-yearly bond accounis, which are to be rendered 
 for the quarter ending the 30th proximo, and thereafter, will contain all 
 the information wliich may be necessary to keep the register alluded to.
 
 Rep. IS^o. 313. 45 
 
 -provided care be taken by the collectors that a specification be always 
 made at the end of each bond account, showing what part of the balance 
 of bonds outstanding consists in bonds not due, and what part in bonds 
 put in suit. 
 
 " Having reason to believe that, by this arrangement, the collectors will 
 be saved a great deal of trouble and labor hereafter, it is hoped that every 
 exertion will be made that the lists now required be as perfect as pos- 
 sible." 
 
 Jlnswtr. I have examined the above " extract," and find it to be a true 
 copy from a circular of the First Comptroller to collectors, naval otiicers, 
 and surveyors^ dated August 5, 1S22 — a part of the records of the Comp- 
 troller's olfice. Its re!]uirements have never been repealed, nor essentially 
 modified. 
 
 The contemplated " register" of bonds was to be kept in the Auditor's 
 office, as will appear from the annexed copy (marked A) of a paper on 
 file in the Comptroller's office, dated 27th October, 1S30, signed by R. 
 Harrison, late Auditor. 
 
 A. 
 
 In the year 1822, // loas discovered that some collectors of the customs 
 had been in the practice of snaking false returns to the Treasury, by 
 retaining or continuing in their account bonds as outstanding, which 
 had been actually paid ; thereby increasing the balance of their quar- 
 terly accounts in bonds, and diminishing in the same proportion that 
 of cash on hand. With a view to the possession of means to check and 
 prevent such practice thereafter, it was, on a conference between the ac- 
 counting officers and Mr. Secretary Crawford, (and I think at my sugges- 
 tion,) arranged that a register should be kept in the Auditor's office, of all 
 bonds then existing, as well as of those to be subsequently taken and dis- 
 charged in the several collection districts. 
 
 In pursuance of this arrangement, the collectors were required by a cir- 
 cular of the Comptroller dated August 5, 1S22, to make out and forward 
 a full and complete list of all bonds which should remain unpaid in their 
 respective districts on the 30th of September following. As these lists 
 came in, they were entered in the appropriate registers ; and the same 
 course has obtained with respect to those since periodically received with 
 the quarterly returns of the collectors. 
 
 This arrangement was deemed the more necessary, in consequence of 
 the loss of accounts by the destruction of the Treasury building in the 
 year ISl I ; and it is believed to have eflected, besides, the saving of much 
 money to the United States. 
 
 R. HARRISON. 
 
 Auditor's Office, October 27, 1830. 
 
 ^nsiver continued. The Comptroller's office had been for many years 
 in the practice of receiving the public accounts which ought properly, and 
 according to law, to have been sent by the officers direct to the Auditor. 
 On the 1st March, 1830, this erroneous practice was corrected by circular 
 instructions from the Comptroller's office, (a copy of which is annexed, 
 marked B ;) and since that time the public accounts have been received 
 by the Auditor.
 
 46 Rep. No. 313. 
 
 B. 
 
 [CIRCULAR.] 
 
 Treasury Department, 
 Comptroller's Office, March 1, 1830. 
 
 Sir • It has been tlie practice, since the commencement of the Govern- 
 ment, originating, it is presumed, in a Treasury regulation, tor all oflicers 
 whose accounts were to be settled in this Department to render them to 
 ihisotiice. • 
 
 The reason of this practice cannot be well accounted for, because the 
 5th section of the act of 2d September, 17S9, to establish the Treasury 
 Department, directs that it shall be the duty of the Auditor (there being 
 but one Auditor at that time) " /o receive all public accounts, and, after 
 examination, to certify the balance, and transmit the accounts, with the 
 vouchers and certilicate, to the Comptroller, lor his decision thereon ;" 
 and the 4th section of the act of 3d JNl arch, 1817, to provide for the prompt 
 settlement of public accounts, directs "tliat it shall be the duty of the First 
 „^uditor to receive all accounts accruing in the Treasury Department, and^ 
 after examination, to pursue the same course with that required in the 
 first-mentioned act." 
 
 The practice which thus obtained, being in operation at the time I came 
 into office, was acquiesced in, and has been contiimed ever since ; but the 
 great accumulation of the business of this office induced an investigation 
 to ascertain whether it could not be relieved from some part of it ; when, 
 the laws referred to being brought into view, it was, upon a consultation 
 with the Secretary of the Treasury, concluded to be the correct construc- 
 tion, that, according to their requirements, all accounts to be reported upon 
 by the First Auditor should be transmitted directly to him. This course 
 you will be pleased to adopt in future, commencing with your returns for 
 the first quarter of the present year; to which an exception is to be made 
 in relation to the annual accounts of emoluments and expenditures of the 
 collectors, naval officers, and surveyors, required by the 2d section of the 
 compensation act of 2d March, 179.9, the form of which is subjoined to 
 the circular from this Department to those officers, under date of the 25th 
 August, 1S23. 
 
 These accounts are, as heretofore, to be transmitted to this office, for 
 the object stated in the section referred to. 
 
 It is deemed proper, on this occasion, to inform you, in order that you 
 may not misdirect yoiu" accounts and returns, that Richard Harrison, Esq.,. 
 is the First Auditor of the Treasury. 
 
 Respectfully, 
 
 JOS. ANDERSON, Comptroller. 
 
 Ansxoer continued. The term " this Department," as it occiu-s in the 
 extract from the circular of August 5, 1822, is always used by the Comp- 
 troller in reference to the Treasury/ Deparlnicnt, generally, of which the 
 Comptroller's offiice is frequently tlie medium of conveying instructions or 
 collecting information. When the Comptroller's office projier is meant, 
 the term used by the Comptroller in his comnumications is "this office." 
 
 The frauds practised by Mr. Swartwout, in regard to his cash balances
 
 Rep. No. 313. 47 
 
 and bonds in his tveekb/ returns to the Secretary of the Treasury, furnish 
 no apology for the neglect of the examining Auditor or Comptroller; be- 
 cause it is not upon these weekly returns that these officers settle the col- 
 lectors' quarterly accounts. In fact, these officers never see such returns. 
 This f\ict is deduced, though in somewhat an attenuated form, from the 
 following examination of tlie Auditor himself: 
 
 Examined by Mr. Smith. 
 
 Question 25. If the Secretary of the Treasury is not the accounting 
 officer of the Treasury to adjust and settle collectors' accounts, how did 
 this concealment from him, in Mr. Swartwout's weekly cash returns, as 
 described in your last answer, of any cash items with which he had debit- 
 ed himself in his quarterly accounts, in any degree enable Mr. Swartwout 
 to become a defaulter for such cash items ? 
 
 *^nsiver. I understand there are weekly returns made to the Secretary 
 of the amount of cash received by the collector, and of payments made 
 by him, exhibiting the balance on hand. Hence, it will readily be per- 
 ceived that, although the collector may debit himself correctly in his 
 quarterly accounts with every tiling with which he is chargeable, yet, if 
 he fails to cliarge himself in his cash account with the whole amount of 
 cash received, and to return the true amount in his weekly returns, he 
 may stand truly charged, on his quarterly accounts, with the whole 
 amount for which he is liable ; but it will not appear as cash on hand in 
 his weekly returns. It was in this way, as I understand, that a very large 
 amount of Swartwout's defalcation was concealed from the view of the 
 Secretary of the Treasury ; and this kind of deception might be practised 
 toa considerable extent, as long as a collector is continued in office, unless 
 it could be discovered from a comparison of the other returns made to 
 the Secretary, or by a comparison with the quarterly returns made to the 
 Auditor, 
 
 Question 2G. In your first answer to my interrogatory, you say Mr. 
 Swartwout's own accounts, up to March 28, 183S, as rendered to the 
 Treasury Depariment, required no new debit to include against him all 
 moneys for which he was in fact indebted to the United States, either as 
 "tonnage duties," "forfeitures," " Treasury warrants," " office expenses," 
 or "cash to be refunded to merchants," 
 
 In your second answer, you say that, notwithstanding his whole indebt- 
 edness thus made to appear in his quarterly accounts, he failed to render 
 an account of said items as cash in his weekly returns to the Secretary of 
 the Treasury, and thus kept their amotnit out of the view of the Secrc- 
 rary as cash on hand. 
 
 Will you now state, if the Secretary of the Treasury be not the ac- 
 counting officer of the Treasury to adjust and settle collectors' quarterly 
 accounts, how did any such deception by Swartwout, as you have de- 
 scribed as made in his weekly cash returns to the Secretary, enable him 
 to become a defaulter for said items with the accounting officers, inas- 
 much as the amount of said items appeared in his quarterly accounts that 
 were returned to such accounting officers ? 
 
 Answer. The failure to return the true amount of money received by 
 the collector to the Secretary of the Treasury, in the weekly returns, does 
 not affect the settlement of the quarterly accounts. The quarterly ac-
 
 48 Bep. No. 313. 
 
 counts may exhibit tlie true state of his accounts up to the end of the 
 quarter, iiolwilhstauding his wceklij rtlitrns made to the Secrctcn-ymay 
 be false. And if the weekly returns made were false, and did not con- 
 tain a true account of the moneys he had actually received, he would be 
 in default on his quarterly account at the close of the quarter. 
 
 It is, then, in every way established, that to the neglect of the accounting 
 officers of the Treasury Department, equally as to Swartwout's own infi- 
 delity, the loss of the public money, by Swartwout's defalcations, has 
 occurred. 
 
 The following examinations will still further elucidate this position,: 
 
 Mr. Fleming examined by Mr. Wise. 
 
 Question 91. Were not vouchers for all debits and credits returned 
 with weekly and quarterly accounts; and could not Mr. Swartwout's in- 
 debtedness at any time be ascertained on each item o(^^ forfeit ures,^ &c., 
 from them ? 
 
 Jinswer. Vouchers for all debits, and for all credits where vouchers 
 were proper, were always returned with the quarterly accounts; and Mr. 
 Swartwout's indebtedness at any time upon each item of " forfeitures," 
 &c., could have been ascertained from them, 
 
 Mr. Fleming examined by Mr. Smith. 
 
 Question 87. If an examination had been made at the Treasury De- 
 partment of the collectors' quarterly returns and the accompanying alpha- 
 betically-marked explanatory abstracts and vouchers, would it not have 
 been easily determined whether any of the cash items credited in such 
 returns constituted a component part of the item of "cash retained," or 
 a part of the item of suspended or unsettled accounts; and do or do not 
 the explanatory abstracts and vouchers that accompanied each of Mr. 
 Swartwout's quarterly returns contain full and explicit information to 
 enable the examining olFicers at the Treasury Department to determine 
 into what general item of the recapitulatory explanation at the foot of each 
 quarterly return each particular item of credit lias been entered? 
 
 ,/Jns(Ccr. To the entire interrogatory I answer, yes. 
 
 Question 100. Had the Treasury Dc^partment at any time required in- 
 formation relative to the items of Mr. Swartwout's "unsettled and sus- 
 pense accounts^'' as set forth in his quarterly r«;turns, would not the man- 
 ner in which he had accounted for said sum of yS()0j291 42 have appeared 
 distinctly ? 
 
 ^Qnswer. I think it would. 
 
 Question 75. Could "the large sum of i5SO,769 53,''^ described in your 
 last answer, retained by Swart wout in lS3t), have become a defalcation, 
 if the Treasury Department had not lost sight of it in the examination of 
 his accounts, inasujuch as you say in your last answer that it was retained 
 " with the knowledge of the Treasury ?" 
 
 .Answer. It could not. 
 
 But no call fur explanation was ever made upon Mr. Swartwout by 
 any of the accounting officers. The subjoined testimony establishes this 
 fact.
 
 ?ep. No. 313. 49 
 
 Mr. Fleming examined by Mr. Smith. 
 
 Que.slion 99. Was Mr. Swartwout, at any time within your knowledge, 
 required by the Treasury Deparlnient to explain or furnish a l)ill of the 
 items upon which, from time to time, he reported liis balances dne the 
 Government under the general head of " amount of unsettled and stiS' 
 pcnse accounts ?'^ 
 
 ,jinswer. Mr. Swartwout was never, to my knowledge, since .Inly, 1836, 
 when I became auditor, Acquired to explain or furnish any such items. 
 
 Air. Underwood examined by Mr. Curtis. 
 
 Question 14. Do you know that any call was at any time made, prior 
 to your visit to New York in November last, either by or under the direc- 
 tion of the Auditor of the Treasury, or any other Treasury olficer, for an 
 explanation from Mr. Swartwout of the nature of the items embraced 
 under the designations of '"' protests," " deposites for unascertained du- 
 ties," *' unsettled and suspense accounts ?" If yea, state when and by 
 whom such call was made, 
 
 *^nswer. I liad heard that Mr. Swartwout retained a large sum to meet 
 the payment of duties under "protest;" but I knew nothing of any pro- 
 ceedings instituted by any Treasury officer in relation to said "protests," 
 ^' deposites for unascertained duties," or " unsettled and suspense ac- 
 counts," prior to my visit to New York in November last. 
 
 George IVood, clerk in Comptroller's offtce, examined by Mr. Smith. 
 
 Question 5. Was any call, within your knowledge, ever made upon^ 
 Mr. Swartwout, by the JPirst Comptroller of the Treasury, to explain what 
 items were contained in his suspense account, which has, from time to 
 time, made a part of the aggregate of his quarterly account ? If yea, state 
 when such call was made. 
 
 Jinswer. I have no recollection of any such call. 
 
 Jesse Miller, First .Auditor, examined by Mr. Smith. 
 
 Question 31. Was any call, within your knowledge, made upon Mr. 
 Swartwout at any time, from your Department, before the expiration of 
 his term of office, to explain what items were contained in his suspense 
 account as debited to himself uniformly in his quarterly account ? If yea, 
 when was such call made? 
 
 Jinswer. I know of no such call prior to the time alluded to, but have 
 understood that there was some investigation in relation to these accounts 
 at the time Swartwout's last nomination was before the Senate. In the 
 settlement of his quarterly accounts, after giving him credit for such pay- 
 ments as he produced vouchers for, and the bonds, the balance, I believe, 
 has generally, if not always, in the statement and report, been designated 
 as cash on hand. 
 
 Question 32. Was the letter marked M, and dated August 13,1838, 
 contained in House document 13, p. 105, the only letter sent l>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, Ǥr., 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- 
 tione<l must not be construed to prevent or exclude any other more de- 
 tailed return which may have heretofore been adopted by the collector. 
 
 A weekly return of debentures issued during the week for drawbacks^ 
 and of such entries made during the s;ime week as will hereafter entitle 
 the person making the same to either a drawbacic, bounty, or allowance 
 for fisheries. 
 
 A weekly abstract of bonds put in suit during the week, designating 
 those paid, and noting also at the end of the abstract the bonds put in suit 
 at any time previous to the week to which the abstract refers, and which 
 may have been paid during the said week. 
 
 A monthly schedule of liquidated bonds. 
 
 A quarterly return of the moneys received and paid by you on account 
 of the marine hospital. 
 
 It is to he understood, however, that this letter is not intended to forbid 
 the transmission of any other accounts or documents in pursuance of 
 former instructions from this Department, and particularly of those usually 
 transmitted to the Comptroller and to the Register of the Treasury. 
 
 It may be proper here to remind those collectors who pay into banks, 
 that the public moneys ought not to be permitted to accumulate in their
 
 Rep. No. 313. 75 
 
 hands, and tliat those whose local situation renders it practicable should, 
 at tlie cud of every week, pay in tiie whole amount of the balance of the 
 weekjexcopUii^ oiilysucli siun as may be absolutely necessary lo face the 
 current disbur-cinent.s of the euaiiing week. It is, indeed, very seldom 
 necessary to retain any moneys for tliat inirpose, as tlie receipts of each 
 week almost universally exceed the disbursements thereof; and the 
 amonnt payable during the course of each may be always previously 
 ascertained with great precisian, except in relation to bounties; the pay- 
 ment of which depends, it is true, on a contingency, but the amount of 
 which never can make any material dilic^rence in the estimate. The same 
 principle .sliould, as far as practicable, regulate the payments of those col- 
 lectors wlio live at a distance from the bank in which they are directed 
 to pay the amount of their receipts. 
 
 From the best view I have been able to take of the subject, it is my 
 opinion that notiiing is here reqnested from you which is not essentially 
 necessary, either for the security of the revenue, or for furnishing this 
 Department with important i'lformation; that nothing is requested which 
 it is not in your power to perform. Should you, however, apprehend 
 any real anJ considerable diiliculty in a strict compliance with every part 
 of what is prescribed, your objections will be weighed with candor, and 
 reasonable aUeraiious introduced, so far as they may not derange the gen- 
 eral system adopted, keeping l/iis Dipartment constantly (ind regularly 
 acqu tinted witk eoery tr.insuction rvhick relates to the rcvemie. 
 
 Not doubting that your incrmation will therein coincide with my own, 
 I take this opporiuniiy to invite you to communicate, from time to time, 
 whatever your observations and experience may suggest, in relation to 
 any defects, improvements, or evasions of the revenue laws. The effect 
 of the present rate of duty on tha iinportatioiis and consumption of the 
 several species of merchandise, as they may affect either revenue or com- 
 msrce, and tiie ellrcacy of the present laws and establishments towards pre- 
 venliuTf frauds, equally injurious to the public and to the fair trader, are 
 objects of primary importance, and on which your communications will be 
 parti ailarly acceptable. 
 
 I have ihg honor to bo, witii consideration, sir, your obedient servant, 
 
 ALBERT GALLATIN. 
 
 BsxjAMiN Lincoln, Esq., 
 
 CoHector, Huston. 
 
 '' Eudry transaction^' which related to the rcDenue was thereby con- 
 stantly brought to the acquaintance of the Secretary's Department. 
 
 With a vie^v to render these returns still more available in their im- 
 portant uses, by the S ;cretary, as well as in a better state of preservation, 
 they were, until latterly, made a component part of the records of his De- 
 partm?nt. All tlie cash transactions of the weekly returns were carefully 
 selected, and conlensed into a record divided intocolumns, and the charac- 
 ter of wliicli will be fully understood by the following examination of Mr. 
 Young, chief clerk, at the present timo, in the Secretary's Department: 
 
 Mr. Young examined by Mr. Curtis. 
 
 0>iisti'}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 
 
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 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<j,and made a general in- 
 spection of the books in which they were then writing, or of the business
 
 K(|>. No. 313. 
 
 83 
 
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 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<i undco^n/mrisons would, \\ is conceived, be greatly 
 useful, and esj)ecially when it is considered that the returns thus rendered 
 to the Secretary weekly and monthly are the only returns of the kind re- 
 ceived by the Department within or during a current quarter. 
 
 " Should it be deemed proper to revive the practice, it is suggested, to ob- 
 viate the inconvenience. and delay, in the office of the First Auditor, at- 
 tending the use, in the office of the Secretary, of the accounts current, that 
 the collectors furnish those documents in diqilicate. 
 
 "I have the honor to he. very respectfully, sir, your obedient servant, 
 
 *'J. N. BARKER. 
 
 "Hon. Levi Woodburv, 
 
 Secretary oj the Treasury .^^ 
 
 Question R Will you please to examine the foregoing extract of a le'- 
 ter addressed by the present Comptroller to the Secretary of the Treasury,
 
 88 Rep. No. 313. 
 
 and say whether or not you concur in the opinion expressed by the Comp- 
 troller in respect to the utility of the examinations and comparisons men- 
 tioned by hnn, and whether or not one or two intelligent clerks could 
 perform that duty ? 
 
 Answer. The returns enumerated in the foregoing hst, (considering the 
 *' statement of duties collected^^ to be a statement of all duties accrui/i!^ 
 and secured in the ])eriod,) .?ee;« to embrace all the items of debit and 
 credit which could arise in the quarter. If they do, it follows that, taken 
 in conn-ixion witli the condition of the account for the previous quarter, 
 they would allbrd the means, l)y comparison, of ascertaining the general 
 results of the account current for the present quarter. The xilUily of such 
 comparison would depend upon the advcmlage gained by knowing gen- 
 eral results at an earlier period than they could be obtained from the set- 
 tled account ; and the adcantdi^e upon the degree of reliance which cou'd 
 be placed upon the co)'rcclness of the returns In/elliij^c/il clerks would 
 be required to carry on this business. The muTiber necessary would de- 
 pend upon the quantity of details, which 1 camiot well estiuiate. 
 
 To the same point may be cited Mr. Miller, the First Auditor. 
 Examined by Mr. Dawson. 
 
 Question 36. Have the books which were adopted and used by former 
 Secretaries of the Treasury as checks on collectors of the customs, viz: 
 *' Weekly returns of receipts and payments of collectors of trie customs," 
 <' Collectors' quarterly accounts current," and " Account of bonds taken 
 and liquidated," been regularly attended to; or have they fallen into dis- 
 use and been neglected for the last four or five years ? 
 
 Ansivtr. There do appear to be some books in the Secretary's office 
 that seem to have fallen into disuse for a number of years pjst. The 
 -condition of those in the Auditor's ollic^', in regard to the bonds taken at 
 New York, was also sulfered to fall back, as has been fully explnined. 
 
 Question 37. If those books had been regularly kept, would they not 
 have furnished means to detect any defalcation of any collector ofcustoms ? 
 
 Answer. I have not examined the books alluded to with care, but am 
 of opinion that, if the returns required by the several circulars of the Sec- 
 retaries of the Treasury to be made to the Department are properly en- 
 tered and compared with one another, any material error or fraud prac- 
 tised by a collector must be discovered soon thereafter, unless the naval 
 officer and collector and their clerks should combine to defraud the Gov- 
 crniTient, by niaking false returns of the real amount of duties secured 
 within the quarter. The books alluded to, I understand, were used to 
 make entries in, from the s:ud returns. 
 
 It is, then, ascribable to a want of ])roper application and use of the 
 means actually within the reach, and constituting an important feature in 
 the archives, of the Secretary's Department, that the defalc;itions of Mr. 
 Swartwout escaped detection in that Department, as tli(7 did in the subor- 
 dinate departments from like causes. Whenever these means have been 
 used with discrimination, and for the purposes which, in the opinion of 
 the committee, suggested their necessity, (and it is apparent that they were 
 sometimes so used by the present Secreiary,) they did not fail to lead to use- 
 ful inquiry and explanation. For instance : in disclosing to the commit-
 
 Rep. No. 313. 89 
 
 tec portions of official correspondence with ^[r. Swartwout, the fol- 
 lowing letters are of the nmnber, and indicate the practical worth of prop- 
 er attention to the returns of collectors to the Secietary, as checks \i\)on 
 the collectors, in conjunction with their use as mcTc estitnales of receipts : 
 
 Trkasiiuv Department, .'i'w^nM/ 17, 1837. 
 Sim : I perceive in your return No. 31, "of moneys received and paid," 
 for the week ending the 5th instant, the sum of $92,196 3.5 for payments on 
 account of " revenue-cutters and boats, contingencies, &c.;" and also, in the 
 succeeding weekly return. No. 32, the additional sum of S92,003 91 is 
 charged for similar objects. As expenditures for those objects have been 
 heretofore but small, in comparison with these, and as there is some press 
 for money at your port, I will thank you toinlbrm me of the cause of the 
 great increase of expenditures for these purposes. 
 I am, very respectfully, your obedient servant, 
 
 LEVI WOODBURY, 
 
 Secretary of the Treafiury. 
 Samuki- SwAf.TwouT, E$q., 
 
 Collector of the Cust.Q7ns^ New y^ork. 
 
 CUSTOM-JIOUSK, 
 
 Neiu Fork, Collector'' s Office, August 19, 1837. 
 
 SiK : In yourletter of the 17lii instant, received this morning, it is stated 
 that in No. 31 of oiu' -'weekly retm-ns of moneyg," S92,19ti 35 is char- 
 ged to payments'on account of" revenue-cutters and boats, contingencies, 
 &:c. ;" and hi No. 32, S92,003 91 is also charged for sinlilar objects. 
 
 I would iirst observe, respectfully, (to correct an error,) that these sums 
 have been reversed at the Department, through mistake, as it will be 
 tbund on examination of the returns, that in No. 31 the latter aniotint is 
 given, ^and in No. 32 the former amount. 
 
 With regard to the great increase of these sums, I have to state, that it 
 is owing to the amount of Treasury drafts, and which are thus explain- 
 ed : On the credit side of the return we enter, as so much money, the 
 amounts received on bonds and cash duties by rliafts; and to counterbal- 
 ance these sums, we charge, on the opposite side, the aggregate amount 
 of the drafts themselves. Biit there being no express item in the return, to 
 which we could distinctly apply the drafts, they were placed under that 
 of " revenue-cutters and bqats, contitigencies, &c." 
 
 This was the only place where we thought proper to put the amount, 
 unless it might be under the item " payments on account of collactions;" 
 but even there it would be blended with other sums. 
 
 The true amount in No. 31, of payments actually on account of" reve- 
 nue-cutters and boats, contingencies. &.c." is - - J54,S-14 17 
 The amount of Treasury drafts - - - 87,159 74 
 
 The amount in No, 32 tor the same object, is as fallows : 
 
 «92,003 9^ 
 
 i54,096 68 
 88,099 67 
 
 «92,196 35
 
 90 Rep. No. 313. 
 
 If our course should be disapproved, we nrjight, for tlie present, erase 
 
 ihe item " payments in bank to credit of Treasmer," and over it write 
 
 " Treasury drafts," and opposite place the amount ; or the item might be 
 
 n'.tcrlined, as would be best preferred. 
 
 I have tlie honor to remain, very respectfullv, vour most obedient servant, 
 
 SAMUEL SWARTWOTJT, Colled or. 
 Hon. Levi Woodburv, 
 
 Secretary of the Treasury. 
 
 The following is a specimen deduced from the attention in practice of 
 the present Secretary, to the monthly returns of the collector at New York 
 I > 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 
 <iuty of collectors to have their returns ''bear date re^idarly the last daj 
 of the week, and Include only the whole of the receipts of payments for 
 the entire week, the said last day included,^' may also be appreciated by 
 recurring to the circular of that energetic and distinguished financier, alj<a 
 given in the early part of this division of the committee's report. Ho.v 
 offectually this same scrutiny would have checked t!)e earliest misuse of 
 the public money by Mr. Swartwout is apparent, when it is considered 
 that the whole of it was covered up and concealed prior to 18.37 by uni- 
 formly omitting in his weekly returns the official recei})ts of Saturday, and 
 not forwarding his returns until the following Monday, and frequently 
 not until Tuesday of the succeeding week; thus gaining the receipts of 
 from two to four days with which to replace his prior deficits. The mis- 
 taken estimate by the present Secretary of the utility of this precision o:\ 
 the part of the Treasury, is easily measured by the advantage which L*^ 
 now seen to have been taken by Mr. Swartwout of the absence of it. 
 The ])racticc of Swartwout, in this particular, will be found illustrated i:* 
 the following* examination of Mr. Phillips, late assistant cashier of the 
 customs; and the indulgence of it, through the negligence or want of a 
 just estimate of it by the present Secretary of the Treasury, is no ler;: 
 clearly brought to view in the testimony which is also subjoined hereto. 
 
 Mr. Phillips examined by Mr. Curtis. 
 
 Question 33. In your statement, contained in your letter of the f)th if 
 November, 1S3S, addressed to Mr. Gilpin, you say, at the close of the let- 
 iter: '' By reference to the weekly returns made to the Treasury Depart- 
 ment, it will be seen that iarge amounts were frequently retained, under 
 the head of ' am.ount Awe the United States, to be carried to next returiv/ 
 which accounts have the signature of Mr. Swartwout ; and, in many in- 
 stances, would not be forwarded until Tuesday, in order that the collec- 
 tions of Saturday and Monday mi^ht place him in funds to make the 
 transfer from his account to that of the Treasury of the United States.*' 
 Pleasi-! state whether it was a frequent practice to delay the weekly re- 
 turns required by the Secretary to be made on Saturdo.y, and not to sen;i 
 ihem forward until Tuesday ; and when that practice began ? 
 
 Answer. It was the rule of the office to make uj) t!ie weekly return 
 <,'arlyon Monday of each week, and it embract^i all the collection of bonds 
 up to Friday afternoon : consequently, the bonds falling due on Saturday 
 and Sunday, and payable on Saturday, would not appear on the account 
 until the following week. It was the frequeilt p«-actice to delay the 
 weekly retin-n until Tuesday; and it commenced, I think, in 1833 or 1834. 
 
 Question M. Until the banks suspended spenie payments, and the col- 
 kctor was ordered to withdraw the bonds from the banks and collect therri
 
 96 Hep. No. 313. 
 
 at the custom-house, was it not the practice of Mr. Swartwout to pay over 
 io the credit of the Treasurer of the United States, weekly, nearly all the 
 money in his hands; and docs not this appear from the weekly returns? 
 
 Ansxvcr. It was the practice, initil the banks suspended specie pay- 
 ments, for Mr. Swartwout to pay over to the credit of the Treasurer of 
 the United States, weekly, nearly all the moneys i'n his hands; and it docs 
 appear in the weekly returns. After the suspension of specie payments, 
 Mr. Swartwout retained all the moneys collected in his own hands, (ex- 
 cept iS70,000 in specie, transferred to the credit of the Treasurer,) and the 
 same continued to accumulate until he retired from office. 
 
 Mr. Woodbury examined by Mr, Curtis. 
 
 Quesiion 28. Do you remember to have noticed that Swartwout got 
 :nto the practice, during the last year or two of his term of office, of omit- 
 ting to despatch his weekly returns from the custom-house until Tuesday? 
 
 ^'inswer. I do not remember to have noticed any general change on that 
 subject ; nor sliould I be likely often to notice the difi'erence of a single 
 day in their arrival, as the alterations in the mode of transporting tiie mail, 
 and in its general speed, and the interruptions in the hours of arrival, have 
 been frequent, and accidents both in tlie custom-house and the post oflice 
 in New York and this city may occasionally ali'ect the arrival or delivery 
 of the letter here for twenty-four hours. But from so large a port as New- 
 York, and especially since the suspension of specie payments, I should 
 notice tv/o or three days' omission. The times, or days, when the returns 
 were actually mailed or despatched, do not appear on the face of the re- 
 turns: and the wrappers showing when the package was mailed, but not 
 always with accuracy the day it was left in the post ofli«e, and thus de- 
 spatched by the collector, are not taken ofl' and inspected by me, but are 
 removed by a messenger; after that, the returns themselves are examined 
 by me in p)erson. 
 
 Question 29. During the time Mr. Swartwout was hi office as collectofr 
 did you regard the " weekly returns of cash received and paid out at the 
 custom-house" as including the cash paid for bonds and cash duties on 
 the several Saturdays on wliich those returns are dated ? 
 
 *.^nsioer. If my attention was ever turned to that particular point, J 
 could state what my opinion was, provided it was expressed in writing; 
 but I do not remember that the question ever arose. Looking, however, 
 to the circular reciuesting the weekly returns, and to the period when the 
 return are received at this office, I should suppose tliey were intended to 
 embrace the receipts of Satiuday, as well as every other day in \he week.. 
 
 Queftlio)i 'M). if the weekly returns included only tlie cash received for 
 oonds paid, and cash duties received up to Friday, inclusive, on what day 
 thereafter ought those returns ordinarily to have come to your hands, as 
 Jie maifs have run for the last two years ? 
 
 J}u3wer.. If they were made out after the close of business on Friday,, 
 and mailed that night, they could reach here by Sunday or Monday eve- 
 ning, I supjjose ; though my recollection as to the speed of the mails, or 
 the hours of departuie of them from New York, during the whole of the 
 two years, is not v(!ry accurate. They would,, then, if delivered punctu- 
 ally at the post office here to the messenger, reach my office Monday or 
 Tuesday morning. But I think tiiey are not generally received in the 
 office here till Wednesday morning.
 
 Rep. No. 313. 97 
 
 There is another feature in the policy which appears to have been pur- 
 sued by the Secretary of the Treasury towards Mr. Swartwout, which is 
 deserving the consideration of the House. It consists in the fact, that 
 while the Seor(;tary. through the Comptroller, acquiesced in the claim oi 
 Mr. Swartwout to retain, under pretence of indemnity for duties to be re- 
 funded by him to merchants who had paid them to him under protest, the 
 large sum of !S201,000,he acceded to the provision of means by the Comj)- 
 troller for the; successor of Mr. Swartwout to refund those same duties. 
 It is true that, on being informed by the successor of Mr. Swartwout that 
 he had borrowed of the latter the sum of ^25,000 for the purpose of these 
 payments, the Secretary, under date of April 21, 1838, expressed a hope, 
 in reply, " that Mr. Swartwout Avould consider that sum as a payment to 
 that extent on account of the" $201,000 due the United States then in 
 his hands. It is likewise true that, being informed, on the 2d of May 
 following, by the successor of Mr. Swartwout, that the ^25,000 borrowed 
 of the latter had been repaid, the Secretary, under date of June 12, ex- 
 pressed himself as follows: "The duties refunded under old protests will, 
 it is hoped, be paid by your predecessor out of the money he retains for 
 his indemnity." 
 
 It is not clear, from any evidence attainable by the committee from the 
 Secretary of the Treasury, or any other Treasury officer, what moneys 
 were refunded by Mr. Swartwout's successor, upon the before-named 
 claims. But it is manifest, from the correspondence, that the sum thus 
 in effect permitted to be drawn a second time from the public moneys is 
 of large amount, and that Mr. Swartwout was compelled to contribute 
 towards it a sum only about equal to ^8,000. It is difficult to perceive 
 a proceeding more strongly characterized by the absence of that energy 
 and vigilance which are so essential at all times to the security of the 
 public treasury, and most desirable of all to be found in the head of the 
 tinancial department of the Government. 
 
 While the committee entertain the oj)inion that cases of defalcation 
 among revenue officers may arise, respecting which the Secretary of the 
 Treasury ought not to be regarded as in any degree in fault, they are 
 far from believing that cases of defalcations may not arise, in which the 
 Secretary should be regarded as alike Responsible with his subordinate 
 accounting officers. A just principle is believed to have been advanced 
 upon tliis subject by tlie committee of the House of Representatives 
 appointed to examine into the condition of the Treasury in 1801. In 
 the report of that conmiittee it is said : " It is the immediate duty of the 
 Comptroller to superintend the adjusting of the public accounts, and to 
 direct prosecutions for all delinquencies of officers of the revenue, and for 
 debts due to the United States, though tjie Secretary, in virtue of his au- 
 thority as superintendent of the collection of the revenucj would be also 
 responsible for the permission of any negligence or abuse of trust in the 
 officers of the revemie, and receivers of public money, after the same 
 should come to his knowledge." The knowledge of Swartwout's defal- 
 cation by the superintendent of the revenue, and to each accoimting offi- 
 cer of the Treasury, camiot surely be controverted after the period when it 
 was known that S201,000 had been retained by him under the pretence 
 of refunding protest money, and that he had, notwithstanding, so neglect- 
 ed and refused to apply the fund, as to compel the Treasiuy of the United 
 States to satisfy the same protests from its separate and subsequently ac- 
 cruing resources.
 
 98 Rep. No. 313. 
 
 The committee will forbear to recapitulate here the extraordinary 
 submissivcness and want of energy that are betrayed by the Secretary of 
 the Treasury, in his loleiance, wiiliout known complaint made to the Ex- 
 ecutive, of the retention and use of the public money collected by the 
 present collector at New York for duties on imports against and under 
 the protests of merchants. The correspondence between the Secretary 
 and said collector on this subject has been already incorporated in detail 
 in a prior division of this report, relating to the correctness of the returns 
 of the collector, and need not again be presented. lUu it is most appa- 
 rent, from that correspondence, that such retention and use of the public 
 money by said collector is not only against the letter and spirit of the 
 revenue laws, but also against the solemn opinions ot'duty communicated 
 to the collector, of the Secretary of the Treasury, and of the Attorney 
 General of the United States. And yet the collector is permitted to exe- 
 cute the law only as he understands it. In fact, as well as in example, 
 this submission of the hi52;her to the subordinate officers charged with a 
 due execution of the laws, is derogatory to the Government and most 
 pernicious to the public interests. It is believed to constitute an imbe- 
 cility of administration on the jiart of the Secretary that calls for imme- 
 diate correction, whether regard be had to the honor of the Government 
 or to the security of the public inojiey, * 
 
 From the preceding evidence, the committee report as established facts: 
 
 1st. Thnt, of late years, important books of record, designed to contain 
 a condenspd statement of the accounts and liabilities of collectors of cus- 
 toms, weekly, monthly, and 'quarterly, have been permitted to fall into 
 disuse in the Department of the Secretary of the Treasury, and thereby 
 render nugatory m;uiy of the essential checks upon the defalcations ot" 
 that class of officers, arising iVom existing laws and Treasury regulations. 
 
 2d. The negligence and failure of the Secretary of the ''J'reasury to dis- 
 charge his duty as the head of the Treasury Department, charged by law 
 with the superintendence of the collection of the revenue, and his want 
 of a correct appreciation of the before-named records in the superintend- 
 ence of the collection of the public revenues, and the consequent neglect 
 to continue and complete them, are justly regarded as a primary cause 
 of the escape from detection, for so long a period, of the immense defal- 
 cations of the late collector at the port of New York. 
 
 3d. TiK»t the Secretary of the Treasury has been wanting in a proper 
 discharge of his duty in otlice, in permitting Samuel Swartwout, late col- 
 lector of Now York, quietly to retain the sum of ^^201, 000, after being out 
 of office, under pretext of indemnifyiuG: himself ogainst claims of importers 
 for duties paid him under ]^rotest, and lial)le by him to be refunded, while 
 it was known to the Secretary, within a few weeks thereafter, that said 
 Swartwou: was neglecting to.refund such protest money, as he claimed to 
 do, and that the same was being refunded, from necessity, out of odier 
 'accruing resources of the Government, by said Swartwout's successor in 
 office. 
 
 4th. T\vd the Secretary of the 'I'rcasury has been wanting in a proper 
 discharge of liis duty in office in permitting the present collector at New 
 York to retain, under his own control, and subject to his own use, com- 
 mingled with said collector's private funds, large and accumulating sums 
 of the public money, collected for duties paid under protest, and against
 
 Rep. Xo. 313. 99 
 
 the dechired opinion of said Secretary, and the declared opinion of the 
 Attorney General of the United States on the subject ; also, against all 
 former usages of the Department, and instead of causing the same to be 
 paid into the Treasury of the United States. 
 
 FART If. 
 
 THE DEFALCATIONS OF WILLIAM M. PRICE. 
 
 The extent of the defalcations of Mr. Price, as district attorney, is 
 found in the testimony of B. F. Butler, Esq., his successor in office, to be 
 2^72,12 4 06; subject, liowever, in all probability, to some offsets for legal 
 services not yet rendered in the charges of Mr. Price. 
 
 The subjoined extract from the testimony of jVfr. Butler presents the 
 results of his own examination into the subject. The committee is unable 
 to com[)rehend, however, the practicability of any concealment by any 
 district attorney, respecting suits commenced, or suits discontinued by pay- 
 ment or otherwise, from the knowledge of the Solicitor of the Treasury, 
 for any period much exceeding t)ie vacation between terms of the district 
 and circuit courts in any State, provided clerks of courts, marshals, and 
 ':ollectors, are properly held up to»a discharge of their respective duties 
 by the Solicitor, and provided due diligence is used in the Solicitor's 
 othce in comparing the periodical and frequent returns to him required 
 by law of these several officers It is unnecessary to recapitulate here 
 tlie requirements of the law in these particulars, and the duties of the 
 Solicitor arising thereiT<im, as they will lie understood in the seqnel. 
 
 It does not appear tliat the returns actually made by Mr. Price were untrue, 
 but all the returns required by law to be made were not made ; and this 
 fact must have been detected in each case at the Solicitor's oifice, if the 
 comparison expressly required by law, of returns made there, liad been 
 )nade with proper care. For instance : the case of the United States vs. 
 Bancker, particularized by Mr. Butler, must have been originally, and for 
 many terms, certified by the clerk of the court to the Solicitor as a suit 
 pending. WJien it ceased to be pending, it ceased to be certified, of course ; 
 and then due diligence on the part of the Solicitor could have detected the 
 fact, and held the attorney immediately accountable. 
 
 The discharge of Treadwell in 1835, on which Mr. Price received 
 55,000, was made on terms prescribed by the Treasury Department; and 
 it is presumed that it must, of course, have b<:en conducted through the 
 Solicitor's otlice, as such is the requirement of law. Is it possible due 
 diligence on the part of the Solicitor would have lost sight of an order 
 upon which it had specially directed the receipt of so large a sum, even 
 though the attorney had neglected to report upon it? 
 
 The same remarks are equally njiplicable to each of the other cases, 
 wherein Mr. Price is a defaulter, and wherein he omitted to make report 
 to the Solicitor. 
 
 It will be observed that Mr. Butler says, it appears that in January 
 and February, 1837, Mr. Price received ^9,G46 07, and in May, 1S37, 
 S6",0ol 11, on custom-house bonds, no part of which has ever been paid.
 
 100 Rep. No. 313. 
 
 The Solicitor of the Treasury, in his testimony, says; '-The clerk of 
 the district court, during the year 1837, reported two hundred and forty- 
 one bonds put in suit by tlie district attorney. On a comparison of these 
 reports with the returns of the district attorney of bonds put in suit, so 
 as to ascertain the legal proceedings, it appeared that judgment had been 
 entered on all but fifty-two bonds: of these, forty-four came within the 
 provisions of the second section of tlie act of lOth March, 1836, for the 
 relief of the sufferers by fire, and the suits thereon were accordingly dis- 
 continued; of the remaining eight, seven bonds are reported as put in 
 suit on the 25lh January, 1837, and one on the Sth April, 1837. On these 
 eight bonds, the clerk does not report that judgments were recovered by 
 the district attorney, who, therefore, remains charged with them." 
 
 Now, if the money received by Mr. Price in January, February, and 
 May, of 1837, was received on any of these last-named eight suits, (as, 
 probably, it must have been, inasmuch as the Solicitor says, in his testi- 
 mony, all the bonds reported by the collector as transferred to the district 
 attorney liad been reported on and accounted for by the latter,) it is difli- 
 cult to attribute the escape of Mr. Price's defalcations for these sums to 
 any thing but negligence on the part of the Solicitor of the Treasury. 
 The suits having been once reported as pending, certified by the clerk of 
 the court, must have been reported as pending, certified in like manner, 
 at each successive term of the court; or omitted altogether, because settled, 
 or otherwise, in the attorney's report. The law requires each report to 
 include suits pending as well as suit^ concluded. If they were reported 
 as concluded, vigilance by the Solicitor would have detected the fact, and 
 held the attorney responsible for them at the return-day of the execution; 
 if not reported as pending or concluded, vigilance would equally soon 
 have detected the fact, and sought an explanation. His tlefalcation on 
 these eight suits, and the want of information concerning them at the So- 
 licitor's office, are attributable, therefore, to a negligent administration of 
 the duties of that office, in the opinion of the committee, and find no 
 apology in any defect of existing laws. 
 
 Extract from the testimony of B. F. Butler, Esq. 
 
 Having had no knowledge or information of Mr. Price's conduct as a 
 receiver of public moneys, until since his departure from tl^e city in De- 
 cember last, I am not able to state the causes which led to his defalcation, 
 nor have I formed any decided opinion on that subject; but I have become 
 acquainted, since I have heen in oflice, with some circumstances which 
 appear to have enabled him to receive and retain public moneys, without 
 being liable to be called to a prompt settlement therefor, and which 1 re- 
 gard as among the causes that led to his defalcation. First, and princi- 
 paUij, by the circular of the Solicitor of the 'J'reasury, dated July 27, 1830, 
 district attorneys are instructed, whenever any obligor of a custom-house 
 bond shall desire to discharge part, or the whole, of his debt previous to 
 judgment, to request him to pay the money to the collector who delivered 
 the bond for suit, taking from him and handing over to the district attor- 
 ney propi-r receipts therefor ; but if, instead of paying tlie money to the 
 collector, as requested, the obligor makes a tender of the whole amount 
 due the Government to the district attorney, he is to receive the same, 
 and forthwith to deposite it in bank to the credit of the collector who de-
 
 He]). No. 313. 101 
 
 livured the bond lor suit ; or, if there be no bank near in which Govern- 
 ment deposites are made, to pay the amount to such collector. Pursuant 
 to these instructions, I understand tFiat Mr. Hamilton, the predecessor in 
 office of Mr. Price, always roterred jiersoiis applying to pay bonds re- 
 ceived Ironi the collector ot" this port, to the collector's office ; and that 
 Mr. Price generally pursued the same course until some time in the year 
 1S37. It appears from his registers, that, in the Avinter of 1830-'37, he 
 received payment, in several instances, on bonds in suit or in judgment; 
 and that, in the spring or summer of 1837, the practice of receiving pay- 
 ment at his office on custom-house bonds delivered to him for collection 
 became a settled one. In this way ])ublic moneys, to a large amount, 
 were brougiit into his hands, and he was exposed to temptations, and tliey 
 to liazards, which would not have existed had the former usage been 
 kept up, especially as neither the collector nor tjie officers of the Treasury 
 Department could generally know, except from Mr. Price's own reports, 
 what payments were made to Ivim on this account. More than two-thirds 
 of the sum for wiiich he is in default consists of moneys received in this 
 way. This practice also enabled him to retain moneys in his hands for 
 a considerable hum before paying them over. Several oi^ the payments 
 made by him to the collector during the year 183S, were after a delay of 
 one or two mouths, and I have found one case in which he held JS3,S49 57 
 for ten months. 
 
 Second/'^. In suits on Treasury transcripts, and in litigated cases gen- 
 erally, and in proceedings of a special nature, the Treasury oliicers have 
 no means of knowing officially, excejjt from the report of the district at- 
 torney, wliat moneys are received by him. 'i'his enables an nnfaithfnl 
 or careless officer to retain moneys in his hands, and exposes them to loss. 
 Mr. Price's defalcation commenced with cases of this nature. 
 
 The first instance of official delinquency which I have discovered, was 
 in not paying over to the collector of Boston any part of the sum of 
 S2,500 received by Mr. Price on the 17th June, 1S35, from Evert A. 
 f^ancker, assignee of Scoville & Birbeck, against whom a chancery suit 
 had been brought for the ])urpose of recovering a balance due to the 
 United States on a custom-house bond executed by Scoville and others. 
 This chancery suit had been pending for several years, and the officers at 
 Boston had no knowledge of the progress made in it, except from the com- 
 munications of the district attorney. It was only during the last week 
 that I ascertained from Mr. Banckcr the fact of the above payment, no 
 entry of it being found in the register of Mr. Price; and 1 have reason 
 to believe that it was never made known to the collector of Boston. On 
 the 7th September, 1835, Mr. Price received from Ephraim Tread well, 
 of this city, on his discharge as an insolvent debtor, pursuant to an order 
 of the Secretary of the Treasury, the sum of ■;55,000. This money was 
 not paid over, nor was the fact of its payment, nor of the discharge of 
 Trcadwell, communicated to the Treasury Department. In October ot 
 the same year, Mr. Price ap|>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. 
 
 '<P. R. FENDALL, Clerk:' 
 
 In reply to that resolution, I have to remark, that I am a public agent, 
 responsible to the law, which I recognise as my superior, to the same ex- 
 tent as the connnittee are ; and I have no right to exceed the authority 
 delegated to me, any more that [than] the committee have to exceed that 
 delegated to it. 
 
 It is a rule I l)ave observed since 1 have occupied the rcs})onsible station 
 \ now do, in all Uiatters connected with the perJbnnance of official duty. 
 Id look into the authority of all persons aski))g for my official action, to 
 see upon what authority that action is demanded or requested. In pur- 
 suance of this principle, with which the committee must be familiar, I 
 have looked into the "copies of certain proceedings of the House of Rep- 
 resentatives,'' fmnislied to me on the 25th instant, by order of the com- 
 Hoittee ; and I there find, after a recital of the defalcation of the late collector 
 of New York, that the committee are authorized 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 existed, the correct- 
 ness of the returns which have been made by the collectors, naval and 
 other officers, and the depo.vite banks respectively, and all such facts con- 
 Biected with the said defalcations as may be deemed material to develop 
 their true character." "That the said cominiitee 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, the length of 
 Sime they have existed, and the causes which led to them." 
 
 This, then, being the authority delegated to the committee, it becomes 
 necessary to inquire, belbrc I send the correspondence of the collector's 
 office of this port with the Treasury Department, since the 1st day of
 
 Rep. No. 313. 1Q» 
 
 January, 1837, "ifo the present dci}/^'' to inquire whether the committee, 
 or any of its members, charge the uudorsigaed with being a delauUer. 
 Respectfully, your obedient servant, 
 
 J. IIOYT, Collector. 
 To the Hon. James Harlan, Chairman, S^c. 
 
 On the Ibllowing day, January 2,0, Mr. Wise mov(>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 an<i 
 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 when the committee shall have found the facts embraced 
 by these inquiries, or closed its investigation, it will make report thereof 
 to the Hause of Representatives. 
 
 On motion of JNIr. Hopkins, the yeas and nays were ordered. 
 
 The resolutions were adopted. 
 
 Yeas — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. 
 
 Nays — Messrs. Foster, Owens, Wagener — 3, 
 
 On the 30th of January the cliairman laid belore tlie committee the 
 following letter from the collector ; 
 
 CUSTOM-IIOUSE, 
 
 Collector's Office, Neiu York, January 29, 1839. 
 
 Sir : Your letter, covering two resolutions passed by the select com- 
 mittee this day, came to me at half-past one, P. M. ; but the pressure of 
 current official duties was such, that I had not the opportunity to make 
 a reply in time to lay it before the committee previous to its adjournment 
 
 I regret that the committee has not thought proper to reply, explicitly, to 
 the inquiry made in my letter of yesterdav, as to whether it intended to 
 charge me with officialdetalcation. An answer to that inquiry appeared 
 to me to be not only a matter of right, but also one which it was my duty
 
 110 Rep. No. 313. 
 
 to institute, inasmuch as I could not conceive what connexion that por- 
 tion of the documents called for by the committee which relates to my 
 own ollicial conduct could have with the defalcation of my predeces- 
 sor; nor could I see any cause for calling for such documents, unless it 
 was the intention of the committee to extend to me the charge of de- 
 falcation. But though an explicit answer has not been given to my in- 
 quiry, I cannot but consider the second resolution passed by the select 
 committee, and enclosed in* your letter, as intimating, at least, that the 
 ■committee deem it necessary to inquire into " the collection and disburse- 
 ment" of the public moneys by me, as eollector of this port, and into the 
 accounts appertaining to the same ; and that they also deem it possible 
 that such an inquiry may show me a defaulter. Regarding the resolution 
 referred to in this serious aspect, I feel it due to the public service, as well 
 as to my own character and rights, to call on the select committee, as I 
 now do, to make a full and thorough investigation into my accounts, be- 
 fore leaving this city, to the end that it may make such a report in the 
 matter as shall either sustain this intimation, or remove all grounds for 
 the injurious suspicions it is calculated to excite. The justice of this ap- 
 peal is too obvious to need comment, and I will not doubt the readiness 
 of the committee to recognise it; although I cannot but question the ac- 
 curacy of the construction which the committee has given to its powers, 
 under the resolutions of the House of Representatives, which I can 
 scarcely think were intended to authorize the committee to make a sweep- 
 ing call for the papers of a public officer, against whom no charge of de- 
 falcation is preferred, for the purpose of ascertaining whether he is not a 
 defaulter. Yet, such is my anxiety to give every facility to the investiga- 
 tion of my accounts, and such my unwillingness to rest for a moment un- 
 der the imputation implied in the resolution of the select committee, that 
 I shall cheerfully submit to it all the official correspondence I have held 
 with the Treasury Department, and all books and papers relating to the 
 receipt and disbursement of the public money, and to the particulars and 
 state of the accounts during the period mentioned in the resolution. 
 
 It will also give me pleasure to communicate, either orally or in wri- 
 ting, any other information on the subject which may be in my power, 
 and which the committee may wish me to lay before it. 
 
 I shall, therefore, immediately proceed 1o select all the letters, orders, 
 and instructions, received from the Treasury Department, within the pe- 
 riod referred to, relating, to the receipt and disbursement of the public 
 moneys, and the state of the accounts; and will have the honor to trans- 
 mit the same to the select committee as soon and as fast as schedules 
 thereof can be prepared. As to the official letters, on the same subject, 
 written l)y me to the Department, the originals of them arc in the posses- 
 sion of the several officers to whom they were addressed, and I am there- 
 fore unable to send them, as requested in the resolution ; but 1 shall be 
 enabled to lay copies thereof before the conmiiltee, if copies will be re- 
 ceived, and are desired. Such copies, if called for, will be furnished as 
 speedily as expert copyists can prepare them. 
 
 I have already communicated to the select committee all the corre- 
 spondence of my predecessor in office, on the subject referred to, which 
 the committee has called for, so far as I know of its existence. 
 Very respectfully, your obedient servant, 
 
 J. HOYT, Collector, 
 
 Hon. James Harlan, Chairman, <5'C.
 
 Rep. No. 313. Ill 
 
 Also, oa the same day the chairman laid before the committee the follow- 
 ing letter from the collector : 
 
 Custom-house, 
 Collector'' s Office, New York, January 30, 1839. 
 
 Sir : In pursuance of the promise made in my communication of yes- 
 terday, to the select committee, concerning my correspondence with the 
 Treasury Department, I now send to the committee the official letters 
 from the Secretary of the Treasury to the undersigned, as per schedule 
 A, hereto annexed. 
 
 I also send the letters from the Treasurer of the United States, as per 
 schedule B. 
 
 I also send the letters from the Fifth Auditor of the Treasury, as per 
 schedule C. 
 
 I also send the letters from the Solicitor of the Treasury, as per sched- 
 ule D. 
 
 I also send the letters from the First Auditor of the Treasury, as per 
 schedule E. 
 
 I also send the letters from the First Comptroller of the Treasury, as 
 per schedule F. 
 
 I also send a book, labelled " Circulars from the Comptroller and Sec- 
 retary of the Treasury." The clerk whose duty it was to arrange that 
 book, I regret to say, has not put the circulars in the book in the order in 
 which they bear date; and there may be some in manuscript not in that 
 book, but in the letters transmitted. 
 
 I have made a hurried selection of the letters I now transmit, from my 
 desire to comply promptly with my undertaking; and it is therefore pos- 
 sible 1 may have omitted some, which I will send hereafter if I discover 
 that any have been omitted. 
 
 To avoid the contingency of a loss of any of the letters, I would respect- 
 fully request that you would permit the clerk of the select committee to 
 compare them, and indicate to me whether the letters correspond with 
 the schedules. 
 
 Very respectfully, your obedient servant, 
 
 J. HOYT, Collector. 
 
 P. S. In the heading of this communication I have stated " schedules 
 annexed ;" I have put the schedules on the top of each separate file of 
 letters. 
 
 J. HOYT. 
 
 Hon. James Harlan, Chairman, ^'C. 
 
 The evasive responses thus made by the collector to the calls of the 
 committee, partaking of a species of special pleading quite out of place 
 in the intercourse of public agents, however suited to some other forum, 
 and studiously withholding thereby all records by which the correctui-ss 
 of his own proceedings in the returns he had made while in olfice could 
 be tested ; and especially the disposition of mind indicated in the quasi 
 apology put forth in his letter of the 29th of January, for not communi- 
 cating his own official letters to the officers of the Treasury Department, 
 viz: that " the originals of them are in the possession of the several 
 -officers to whom they were addressed, and I am therefore unable to send
 
 112 Rep. 'No. 313. 
 
 them as requested, 4*c., btd would send copies if desired" S,-c., precluded 
 the hope of obtaining from that quarter anything Uke satisfactory inform- 
 ation respecting his returns and the basis of them, without recourse Xo 
 something of more binding solemnity than respectful calls in the shape of 
 resolutions, and probably not without recourse to the testimony of others. 
 No more, consequently, was obtained from the collector, except' by making 
 him a witness, and examining him under oath, which, at a subsequent 
 and proper stage of the investigation, was done. 
 
 On the 5th of February, Mr, David S. Lyon, formerly a deputy collect- 
 or at New York, was under examination as a witness, and information 
 was sought of him respecting trie amount of money which had been re- 
 ceived under protests by the collector. This part of the proceeding is 
 extracted from the journal of the committee, in the order of its occur- 
 rence, as follows : 
 
 Question 3. What is the total amount of money received into the pos- 
 session of Jesse Iloyt, as collector, or individually, under protest, from the 
 commencement of his ofiicial term to tiiis day? 
 
 Mr. Owens objected to the 3d interrogatory. 
 
 Mr. Foster called for the yeas and nays on the question. Shall the inter- 
 rogatory be propounded? 
 
 The question was then put, and decided in the affirmative. 
 
 Yeas — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. 
 
 Nays — Messrs. Foster, Owens, Wagener — 3. 
 
 The 3d interrogatory was then propounded, and the witness gave to it 
 the following 
 
 Jinswer. I do not know what amount of money Jesse Hoyt has re- 
 ceived as collector, or individually, under protest; but I do know that 
 large amoimts have been paid him, and that he has required such money 
 to be paid him as duties upon goods, wares, and merchandise, which the 
 importers claimed to be exempt from duty. I should suppose that lie has 
 received three hundred thousand dollars. I have personally paid him, as 
 agent of importers, about thirty thousand dollars. He demands this money 
 as collector, and withholds the goods as collector until his demand is com- 
 plied with. I believe the moneys thus received, under protest, are not 
 entered in the cash book, nor put in the hands of the cashier, and that 
 they do not enter into his account of public moneys with the Treasury 
 Department; but that he keeps the vouchers in his private possession, and 
 kee]:)S the money in his individual capacity. 
 
 I have received the individual checks of Mr. Hoyt upon the City Bank,, 
 in cases where he has returned duties paid under protest, and have re- 
 ceived his official receipt for money paid him under protest See a copy- 
 of one, viz : 
 
 "Custom-house, New York, January 22, 1839. 
 "Received of Mr. Gay Lassac & Noel, five hundred dollars, as a de- 
 posite to secure the payment of the duty on merchandise, imported in the 
 ship Cliarles Carroll. 
 
 ''$500 "J. HOYT, Collector.'' 
 
 When I paid said sum, I received the receipt of the assistant cashier, 
 Mr. Bleecker, in the usual way, and delivered it to my principal, and was
 
 Eep. No.313. . 113 
 
 requested by Mr. Bleecker to return it, and receive one signed by Mr. 
 Hoyt, saying that if I lield his receipt, he was responsible for money held 
 by Mr. Hoyt. 
 
 Mr. Lyon having intimated that he was in bad health, and desired to 
 be detained no longer, for the present, by the committee, Mr. Wise moved 
 that he be excused from the further attendance to-day, and that he, Mr. 
 Wise, should iiave leave to propound the interrogatories herewith pre- 
 sented, from 4th to 20th, inclusive, and that the witness be permitted to 
 retire with the same, and to return his answers when completed, subject 
 to any objection wliich may be made to the same. 
 
 The yeas and nays were called, on motion of Mr. Owens, and the mo- 
 tion was carried. 
 
 Yeas — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. 
 
 Nays — Messrs. Foster, Owens, Wagener — 3. 
 
 Mr. Owens moved that Mr. Hoyt, the collector, be furnished by the 
 clerk v/ith copies of all the interrogatories and answers of David S. LyoUy 
 a witness examined in this investigation,- as far as he has niade answer to 
 them, and having relation to the conduct of said Jesse Hoyt. 
 
 This motion was amended by the committee so as to read as follows, 
 and then adopted : 
 
 "That Mr. Hoyt, the collector of New York, be forthwith summoned 
 as a witness, and that, before he be examined, the interrogatories submit- 
 ted 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 
 he have liberty to attend the committee during the examination of any 
 witness who may be called upon to testify concerning his otticial conduct.'* 
 
 Mr. Hoyt was accordingly summoned, and forthwith appeared. Tiie 
 above interrogatory and answer of Mr. Lyon were read to him ; and 
 from this period, onward, Mr. Hoyt was advised of all testimony taken in 
 committee affecting himself, either directly or indirectly. He was, more- 
 over, permitted to have witnesses summoned and interrogated by himself, 
 all whom he had desired, and up to tlie evening of the 7th of February. 
 And not only was this extent of liberality shown the collector by the com- 
 mittee, of making himself a vx^itness, with full opportunity of explaining 
 every point alfecting himself in the testimony of any other witness, and of 
 having called any and every witness he desired to call, with the opportunity 
 of examining them himself; and, also, of having his interrogatories pro- 
 pounded to them through tlie members of the conmiittee, as well as by 
 himself; but he was also permitted the extraordinary ruse of interrogating 
 himself, and of answering to his own interrogatory, that no point of inter- 
 est to himself might escape explanation. 
 
 In the progress of the examination on the 5th of February, of Mr. 
 Hoyt, relative to the amount of money received by him under protest, as 
 collector, and his mode of keeping and making returns of it to the Treas- 
 ury Department, it was discovered that only general information and es- 
 timated amounts were attainable from him ; but he imbodied in his tes- 
 timony a correspondence which he had entered into about seven months 
 after his appointment to ollice, with the Bank of the Stale of New York, 
 upon the subject of keeping and paying interest for this class of his col- 
 lections, as his own assent, and not as the agent rf the Government, 
 The following reply of the bank comprises the c. rrespondvmce of Mr. 
 Hoyt with it, disclosed at this time ;
 
 114 Rep. No. 313. 
 
 Bank of the State of New York, 
 
 October 19, 1838. 
 
 Dear Sir: I have the honor to acknowledge the receipt of your letter 
 of this date, addressed to the president and directors of this bank. 
 
 You slate " I have been in the habit of receiving, at various times, from 
 the importers, sums of money under protest, with a notice not to pay it 
 over to the Government, as suits would be commenced to recover it back. 
 
 " In such cases I have not passed the money to the credit of the United 
 States, but have held it as a trustee, for the use of such parties as should 
 be adjudged by the court to be entitled to it, 
 
 " In case of suit brought, and recovery had, interest would also be re- 
 covered from me at the rate of seven per cent, per aninim, 
 
 " Under these circumstances, it is but proper that I should so dispose of 
 the money as to derive the same interest from it that I should be compel- 
 led to pay, provided it could be done with safety. 
 
 " The account I keep at your bank is a large one, and the money I re- 
 ceive under protest forms a part of my daily deposite with your institu- 
 tion. 
 
 " I shall hereafter make a weekly report, on Monday of each week, to 
 the Treasury Department, of the amoiuit I so hold under protest. If I 
 furnish you with a copy of that report, will you allow me at the rate of 
 seven per cent, interest, on that portion of my deposite which shall ap- 
 pear by the weekly report to be held by me under protest ?" 
 
 I am instructed to reply, that this bank will accede to your proposition 
 to allow you legal interest on that portion of your deposite which shall 
 appear on your weekly reports to be held by you vmder protest. 
 
 I have the honor to remain, very respectfully, your obedient servant, 
 
 R. WITHERS, Cashier. 
 
 Jesse Hoyt, Esq., Colleclor. 
 
 In continuing the examination of Mr, Hoyt on the succeeding day, 
 (February 6,) it appeared that both prior and since the date of the above 
 correspondence, (October 19, 1838,) he had employed two banks as his 
 agents, to receive on deposite public 7nnncijs collected by him, not re- 
 sponsible to the Government, but to himself only ; and not in his capacity 
 as collector, but in his individual capacity, in the Bank of the State of 
 New l">r/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 decidin<r a question, the pro- 
 priety of which the committee cannot possibly know; and will be well 
 calculated to destroy in the public mind all confidence in tlie results to 
 which this committee may anive. 
 
 Resolved., That, hereafter, the time during which the committee wTil be 
 in session shall be from ten o'clock, A. iM., till half-past four, P. M.; and 
 from seven o'clock, P. M., till half-past ten, P. M. 
 
 Mr. Curtis moved to lay the resolution and amendment on the table. 
 
 Mr. Foster called for the yeas and nays, and the motion was decided 
 in the atiirmative : 
 
 Veas — Messrs. Curtis Dawson, Harlan, Smith, Wise — 3. 
 
 Nays — Messrs. Foster, Hopkins, Owens, Wagener — 4. 
 
 Mr. Worth, the other cashier, did not obey the snbpa;na issued pursu- 
 ant to the resolution of the committee. And the power of the committee 
 overlliG witnesses and their papers, connected with Mr. Hoyt's accounts 
 of the public money, being thus exhausted in the pursuit of information 
 deemed essential and indispensable to the formation of a correct judg- 
 ment in relation to his returns, and the certainty that the late period in 
 the session of Congress would preclude any successful appeal from the com- 
 mittee to the House for further aid, the following ivsolution wa.s offered 
 by Mr. Wise, at the close of the morning session of the committee during 
 which the foregoing proceedings were had, viz : 
 
 Resolved, That this committee having accomplisliod its principal ob- 
 ject, to inspect the books and papers in the custom-house, in coming to 
 the city of New York, and, desiring to insj)ect the books and papers in 
 the Treasury Departnient at the city of Washington during the short pe-
 
 136 Rep. No. 313. 
 
 hod of time now left to the turther prosecution of its inquiries, v.ill ad- 
 journ tins day at ten o'clock, P. M. to meet at twelve o'clock, M. ou 
 Tuesday the 12th instant, at the room of the Committee on Commerce in 
 the Capitoi ; and that the witnesses licnceforth he summoned to appear at 
 that place, until further ordered. 
 
 Mr. Foster moved to amend the resolution, hy striking out all after the 
 word " Nesolvcd," and inserting the tbllowing : 
 
 Whereas, ill the course of the investigations of. this committee, wit- 
 nesses have been introduced and sworn, whose testimony has tended to 
 charge the present collector of the port of New York with official 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 hives- 
 tigation thereof, hy witnesses to be produced by him; and requestnig that 
 such full investigation may be had here, (in tlie citj'-of New York,) where 
 lie alleges that the witnesses which he wislics to introduce reside : and 
 whereas it is due to the full and fair administration of justice that the said 
 collector should have a full opportunity to rebut the charges thus made 
 against hiin : and whereas several witnesses are now under exami- 
 nation before this committee, the testimony of whom is not ^'"et closed : 
 and whereas, from the fact that several witnesses have been under ex- 
 amination at the same time, the testimony of several of whom is not 
 now before the committee, either in manuscript or m print, (a portion of 
 the manuscript being in the hands of the printer.) the committee have not 
 at this time the means of ascertaining the effect to be given to that testi- 
 mony, or the nature thereof; and individual members of the committee arc 
 consequently unable (until a better opportimity shall be afforded to exam- 
 itie 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 full understanding thereof: and whereas wo 
 are satisfied that a full investigation of the facts connected with the de- 
 falcations charged can be better examined into here than elsewhere : 
 therefore, 
 
 Resolved, That this committee 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 a resolution passed be- 
 fore the testimony is ended, will be calculated to deprive the said collector 
 of the right (which every man when charged has) of showing that those 
 charges are unfounded, and of protecting his character from aspersion ; 
 will jirevent the individuals of the committee from examining and cross- 
 examining such witnesses as they may believe ought to be examined ; 
 will set a ])recedcnt entirely nev/ and arbitrary in the administration of 
 justice, dangerous to the rights and privileges of persons who may 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 com- 
 mittee may arrive. 
 
 Reisnlve'd, That, hercal'tor, the time during which thc^ committee will 
 be in session, shall be from ten o'clock, A. M., till half-past four o'clock. 
 P. M.; and from seven o'clock, P. M., till half-past ten, P. M. 
 
 Mr. Foster called for the yeas and nays on the amendment, and it was 
 decided in the negative : 
 
 Yeas — Messrs. Foster, Owens— 2. 
 
 Nays — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6,
 
 Bep. No. 313. 137 
 
 Mr. Wagoner moved an adjournment, and called for the yeas and nays. 
 Motion lost : 
 
 Yeas — Messrs. Foster, Hopkins, Wagener — 3. 
 
 Nays — Messrs. Curtis, Dawson, Harlan, Smith, Wise — 5. 
 
 The question was then taken on Mr. Wise's resolution, and decided in 
 the affirmative ; the yeas and nays having been called for by JMr. Foster. 
 
 Yeas — Messrs. Curtis, Dawson, Harlan, Hopkins, Smith, Wise — 6. 
 
 Nays — Messrs, Foster, Wagener — 2. 
 
 The committee then, at half-past four o'clock, P. M., look a recess till 
 seven o'clock, P. M., to meet then at the Astor House. 
 
 During the evening session of the committee, and not forty minutes 
 previous to the expiration of the hour appointed by the resolution of the 
 morning for the adjournment of the committee to meet at the Capitol in 
 Waslungton, the chairman received and submitted two letters from Mr. 
 Hoyt. 
 
 On motion of Mr. Owens, 
 Resolved, That the last communication from Mr. Hoyt, collector, be 
 r.ead. 
 
 Whereupon, the following letters were read : 
 
 Friday Evening, 7 o'clock, 
 
 February S 1839. 
 Sir: 1 have the honor to enclose you a communication retracting my 
 former answer to the question of Mr. Smith, and make an answer to the 
 same. 
 
 Respectfully, 
 
 J. HOYT, Collector. 
 Hon, Jawi'.s Harlan, Chnirnxan. 
 
 Friday EvENiNG,_/'e6rwar^ 8, 1839, 
 
 7 o'clock, P. M. 
 
 Sir: If I correctly understand what is demanded of me by the com- 
 mittee of which you are chairman, it is substantially this: that, as a con- 
 dition precedent to the receiving and acthig on a communication addressed 
 by me this morning to the committee, and placed by me personally in 
 your hands, as its chairman, at 1 1 o'clock this moruing, 1 must retract the 
 answer made by me to a question put by Mr, Smith, about two minutes 
 before that communication was delivered to you, (although not until after 
 it was written,) which question was in the following words, as appears 
 from a copy there. >f 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 
 
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 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<j:ly. 
 
 I am, &c. LEVI WOODBURY, 
 
 Secretary of the Treasury. 
 LiTTLEBURV Hawkins, Esq., 
 
 Receiver of Public Money, Helena, %flrk. 
 
 Helena, March 13, 1835. 
 Dear Sir: Yours of the 30lh Januiiry is before me ; in reply to which 
 I have to say, that, notwithstanding ;) want of prom])tuess is somewhat 
 manifest on my part, yet permit me to assure you that all diligence on my 
 part was, and shall on all similar occasions be used, in order to discharge 
 promptly the functions of my office. But my apology is, that, owing to 
 the river being closed, and no steamboats running, it was rendered entirely 
 impracticable at an earlier day than I attended to it. Since my first de- 
 posite, 1 flatter myself that all promptness has been made use of. 
 I have the honor to be your obedient servant, 
 
 L. I{A^^ KL\S, Receiver. 
 Hon. Levi Woodbury, 
 
 Secretary of the Treasui'y, i^-c.
 
 192 Rep. No. 313. 
 
 Helena, (A. T.,) Juli/ 5, 1835. 
 Sir : I have tho honor to enclose the transcript of the sales of land at 
 this office for the months of April, May, and June. 
 
 I am, respectfully, your obedient servant, 
 
 L. HAWKINS. 
 Hon. Levi Woodburv. 
 
 Secretary of the Treasury, ^'c. 
 
 N. B. — They were retained to the end of the quarter, with an inten- 
 tion of sending on an agent with them. Indisposition of the agent pre- 
 vented. L. H. 
 
 Treasury Department, July 30, 1835. 
 
 Sir : I have received your letter of the 5th instant, enclosing register 
 of sales and receipts for the months of April, May, and Juno last. The 
 transmission of these papers to this office is irregular, as will be seen on 
 reference to your instructions. That there may be no further misappre- 
 hension in regard to the returns required, I have to state, for your inform- 
 ation, that your quarterly accounts and vouchers, accompanied by the 
 yegisler of sales and other necessary statements, are to be rendered to the 
 General liand Office for settlement, immediately after the expiration of 
 eaclj quarter. Duplicate monthly returns, showing the balance on hand 
 in the previous months, the aggregate receipts, and the several heads of 
 disbiusement in the current month, and the balance due, are to be ren- 
 dered at the close of each month — one of which is to be sent to the Secre- 
 tary of the Treasury, and the other to the Commissioner of the General 
 Land Office : and as no return of the latter description has been received 
 from you since that for the month of January last, I must require your 
 immediate attention to the omission. 
 
 The regular deposite of the whole of the public moneys, as prescribed 
 by the regulations of the Treasury, and the punctual transmission of your 
 accounts and monthly returns, are paramount official duties. I trust you 
 will so regard them, and, by their strict observance, thus .save the Depart- 
 ment the painful necessity of calling the attention of the J]xecutive to any 
 future neglect in these respects. 
 
 I am, &c. LEVI WOODBURY, 
 
 Secretary of the Treasuty. 
 
 L. Hawkins, Esq., 
 
 Receiver of Public Money, Helena, Jl. T. 
 
 Helena, (A. T.,) .Jugust 2, 1835. 
 Dear Sir : Your favor of the 30th ultimo came safe to hand. I regret 
 th;n I was conq)elled to leave to make my de])osites at Natchez. The 
 monthly and quarterly accounts, both, shall be furnished from the com- 
 mencement of the operations of this office to the end of the last quarter, 
 and shall be strictly attended to hereafter. 
 
 I am, respectfully, your obedient servant, 
 
 L. HAWKINS, Receiver. 
 Hon. Levi Woodbury, Secretary of the yVcasury. 
 
 [Balance due from Mr. Hawkins, one hundred thousand dollars, 
 (?100,000,) per last settlement at Treasury.]
 
 Uq>. 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!<l 
 to the <-|uestion, ;uid had writti'U tiie following-, lo wit: ' I have known 
 officers attached to the custom-house to have been called on for — ' when 
 Mr. Owens, member ot' the committee, interposed, and informed the wit- 
 ness that he was not bound to answer any interrov^atory relating to hi^: 
 private alfairs ; and, tlicreupon, Mr. Poster, another ineoibsr of the com- 
 mittee, objected to propounding the interroiratory. The witness here 
 commenced to tear olf what he had written before objection was made to 
 the interrogatory. Mr. Wise prevented him from doing so by forbidding 
 the act. Air. Foster insisted that the witness had tlie riglit to tear ol^' 
 what he had written, and that it was hot his answer until it w;is complete 
 and handed in, and he asked the witness wlielher it was his answer, and 
 he replied ' it Avas not ;' and the committee having decided tliat the in- 
 terrogatory should be propounded, the said question by Mr. Wise waV, 
 again handed to the witness, and he returned t!ie following: 'I decline 
 to .answer the 2d question.' • Tji;; witness was then permitted to retire." 
 
 John Becker was sworn as a witness. In answer to the 3d question 
 he said: "I have beco collector for the democratic repu!)licau party in thiy 
 city. It is not an official app >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. ? 
 
 <Qnsioer. During the above period large balances were in Mr. Swart- 
 wout's hands, and the Government passed heavy drafts upon him for 
 Kpecie, which he was unable to pay in specie ; in fact, we had to apply 
 to the Treasury Department for specie to pay debentures and the current 
 expenses of our office. 
 
 In addition to the foregoing testirriony of Messrs, Phillips and Ogden, 
 the cashier and assistant cashier at the custom-house at New York, under 
 Mr. Swartwout, the committee submit the following correspondence 
 between Mr. Woodbury and Mr. Swartwout: 
 
 May 10, 1837. 
 Sir : Owing to the heavy run which was made throughout Monday 
 and Tuesday upon the banks of this city, they all came to the determina- 
 tion last evening of suspending specie payments for the present, the de- 
 posite banks being included in the number. As soon as the deposite banks 
 opened this morning, I called upon the presidents and cashiers to confer
 
 Rep. No. 313. 257 
 
 with them in relation to Jliis measure, and liave been advised by the 
 Manhattan Company and Bank of America to continue to receive the 
 notes of the city banks as usual. 
 
 On looking over the "circular to collectors and receivers of public 
 money and to the deposite banks," I find the instructions so positive that 
 I prefer suspending receipts for bonds, in this office, which may be return- 
 ed from the banks, until I can receive your further instructions. In this 
 decision I am sustained by the opinion of the district attorney. Many 
 persons have tendered bank notes for tlieir bonds, which fell due some 
 days since, but I have declined receiving tliem until I hear from you. In 
 order that I may receive the earliest information frojn you, I shall send 
 this letter by the '' expt'ess mail.^' 
 
 I am, &c. 
 
 S. SWARTWOUT. 
 
 Hon. Levi Woodbury. 
 
 P. S. The National Bank refuses to receive the notes of the Mechanics' 
 Bank in consequence of the large balance due them. 
 
 To collectors of the customs. 
 
 Treasury Department, May 12, 1837. 
 If the bank where you deposite should suspend specie payments, you 
 will yourself collect and keep safely in your own hands the public money 
 for all duties at your port, until further directions are given to you by this 
 Department how to deposite, transfer, or pay it. You must, of course, 
 continue to adhere to the existing laws of Congress, and the former in- 
 structions of the Treasury, in respect to the kind of money receivable for 
 customs : and by which it is understood to be your duty to require pay- 
 ments to be made in specie, or the notes of specie-paying banks that are 
 at par. 
 
 LEVI WOODBURY, 
 
 Secretary of the Treasttry. 
 
 Treasury Department, May 19, 1837. 
 
 Sir: This Department has, with much surprise, seen several represent- 
 ations in the daily press concerning certain declarations made by you at 
 a recent public meeting in New York city, as to the course you intended 
 to purr.ue in future in collecting the public revenue. 
 
 The importance of the subject, and the nature of these representations, 
 render it my unpleasant duty to call your innnediate attention to them. 
 
 Some of the accounts of what took place represent you as saying, in 
 substance, that, as the orders of the Treasury could not be complied with, 
 you, oi\ your own responsibility, would dispense with them ; while others 
 state that yon understood a discretion had been left to you by the Execu- 
 tive on this subject ; and that, in the exercise of such discretion, you should
 
 258 Rep. No. 313. 
 
 not coijform to the instructions of .the Department, either by collecting the 
 money yourself, which fell due for duties, or by collecting it in such kind 
 of money as the laws require. Other representatioDS convey the idea that, 
 if you pursued such a course, the Government would make no objection 
 to it. 
 
 Under a behef tliat in these reports as to your remarks and determina- 
 tion on this siibject, some unfortuiiaie errors must have occurred, or that 
 you nuist have imbibed very incorrect opinions concerning the views en- 
 tertained by the Department, it becomes proper on the present occasion 
 to repeat, in explicit terms, the real character and extent of tiiose views. 
 
 1. Tlie order as to the mode of collecting bonds by yourself, rather than 
 through the banks, and in specie or its equivalent, was, in the last respect, 
 in accordance with the course which you reported to this Department for 
 its approval on the suspension of payment by the banks. The order was 
 the same in substance, in all respects, at your port, as that adopted -at all 
 otjier ports in the United States, where no banks paid specie on demand 
 for their notes, and where, in that event, the express language of the do- 
 positc act of June, 1836, imperatively required tlicir discontinuance as 
 public depositories; and odier laws virtually forbid the receipt of their 
 notes for duties. 
 
 2. But, in the wide-spread calamity which had recently fallen on the 
 commercial world, and, through it, upon those banking institutions, in 
 common with others which were depositories of the public money, it was 
 cvideiit that our Unanccs must iK-eome end)arrassed through the previous 
 embarrassments of others, and that great care and ellbrtsmust be exercised 
 to meet faithfully the curnait public engagements. At the same time, it 
 Avas desirable that every indulgence and forbearance should be exercised, 
 and were intended by the President and this Department to be liberally 
 exercised towards the public debtors, which those engagements would 
 permit. 
 
 3. Accordingly, in order to njitigale the evils which pressed so heavily 
 on the rnercliants, this Department, with the sanction ot" the President, at 
 once authorized a postponement to be granted, in all suitable cases, of the 
 payment of duty bonds, as well before as after suit ; and subsequently, as 
 new events justified, permitted it to be extended till after the commence- 
 inent of the noxt session of Congress. 
 
 The Department likev/ise empowered the collectors to receive for duties 
 the drat'ts of the Treasurer, in favor of the public creditors, which might not 
 be paid in specie to the holders by the banks on which they were drawn. 
 
 Outstanding debenture bonds are also receivable in the same way; and, 
 to afford the opportunity to procure still further aid and relief, if it shall 
 be deemed proper by Congress, that body has been specially convened by 
 the President at the earliest convenient day. 
 
 After all these mitigating measures, neither the President nor this De- 
 partment saw any further indulgence which could be given consistent 
 with the acts of Congress, and which it was within our powers to bestow, 
 limited and regulated as those powers are by various express laws. 
 
 It was, and still is, hoped that the merchants would, till Congress as- 
 sembled, cheerfully incur the diminished sacrifices, in respect to the pay- 
 ment of some of the duties,' which their liabilities and business might 
 render necessarv; and that the odicers connected with the customs would
 
 Rep. No. 313. 259 
 
 fuel a pride, as well as /.oai, in encouraging llicmto upyioid the lawsfaiili- 
 fully, and neither counlenance nor })erniit any departures from thcni. 
 
 The Executive possesses no authority to delegate to you, nor has il in- 
 tended to delegate, any discretion to disregard those laws in any particular, 
 or to act contrary to the instructions of the Department which had heeti 
 issued in conforniitv to them ; nor can it sanction the exercise of any such 
 discretion on the })art of any of the ollicers of the customs. 
 
 It would seem better that the duties, wiiether due on bonds or in cash, 
 when the goods are entered, and wliich the merchants may be unable, if 
 not postponed, to pay in any of the legal modes before pointed out, till the 
 early day on which Congress convenes, should go entirely unpaid from 
 inability to meet them legally, than be collected or discharged in a man- 
 ner that is not sanctioned either by the acts of Congress or our duty to the 
 Govermnent. 
 
 'I'he Department is willing to make liberal allowances for acts growing 
 nut of the sympathy naturally felt for tlie cmbarras'sments of tlu- commer- 
 cial community, and the strong desire to contribute to their relief; but 
 you must be sensible that the newspaper accounts which have already 
 appeared, are calculated to convey the idea that the President and this 
 Department are disposed to overlook, or even to approve, the unauthor- 
 ized course which it is said. you propose to adopt ; audit is possible that, 
 from your full knowledge of the sincerity and extent of the anxious desire 
 of the President and of this Department to alibrd relief, you may have 
 entertained the impression that such would be the case. 
 
 It therefore becomes my duty instantly to inforiii you that all such im- 
 pressions are erroneous, and it is hoped that many of the considerations 
 liefore stated will have occurred to you; and that, under their intluence, 
 you will continue to discharge your duties in the manner pointed out in 
 the acts of Congress and the instructions of this Department. 
 I am, sir, very respectfully, your obedient servant, 
 
 LEVI WOODBURY. 
 
 Secret my of the Treasury. 
 
 Samuel Swartwotjt, Esq.. 
 
 Collector. New York. 
 
 May 22, 1837. 
 Sir : 1 have the lionor to acknowledge the receipt of your letter of the 
 19th instant, and beg leave to state, that I regret that you should have 
 believed the various reports of the new.spapers, in regard to the language 
 said to have l)een made use of by me on the 17th instant, I will give 
 you the precise v.'ords made use of by ine, and leave you to judge whether 
 there was any impropriety in them. Several gentlemen called u])on me 
 to request that I would meet the merchants at their exchange, and inform 
 them of the result of my visit to Washitigton. I did so ; and when tliere, 
 stated, that inmiediately on the receipt of your communication of the 12th 
 instant, I set out for Washington ; that when I arrived there, I waited 
 upon the Secretary of the Treasury, and expressed to him my apprehen- 
 sions that the order could not be carried out, and begged to know 
 whether some expedient could not be adopted to relieve the merchants 
 from specie payments; that the Secretary showed me the law, read it. and 
 observed that it was imperative, and could not be disregarded ; that upon 
 this 1 went to see the President, who gave me the same assurances, ex-
 
 260 Rep. No. 313. 
 
 pressing, at the same time, his deep sympathy for the merchants who 
 were so unfortunately situated; that as no rehef could be offered through 
 the authority of Government, 1 had offered to act without its orders, pro- 
 vided 1 was permitted in any way so to do, and that I would throw my- 
 self upon the people and Congress for my justification ; but that this prop- 
 osition was promptly discountenanced by you. In conclusion, I remark- 
 ed, that notwithstanding the Government could not authorize any devia- 
 tion from the law, I was perfectly willing to take such responsibility, and 
 that I believed the people and Congress would bear me out in it. This 
 same declaration was made in your and the President's hearing, without 
 exciting your alarm in the least at the time. 
 
 In renewing it here, I did not mean to be understood as having acted 
 on it, or assumed it ; but simply expressed my belief, in case it should be 
 done, and I was willing to run the hazard, that I, or any other person .so 
 doing, would be fully sustained by Congress. The expression, therefore, 
 of such a belief was hot crinjina I, although to carry it out might have 
 been ; but this I did not do. The instructions contained in your letter of 
 the 12th instant, and in subsequent orders, have been strictly carried 
 into effect. Not a dollar for bonds, or cash duties, has been received 
 at this ollice, since Mr. Ogden received your letter of the 14th instant, 
 in any thing but specie. I have not authorized or countenanced a 
 deviation from it. Tiiere has not then been any violation of the orders 
 of the Department. The most unpleasant circumstance connected with 
 this affair, is the impression that I may have authorized the supposition 
 that 5'-ou or the President had, by inuendo or intimation of any kind, in- 
 duced me to assume this responsibihty. This is impossible. I may be 
 imprudent, over-zealous, or incautious ; but I beg you and the President 
 to believe that I am incapable of duplicity or falsehood. I could not, in 
 the most remote degree, have done so. I never dreamed of such a thing, 
 and never could have entertained the idea, or in the slightest degree have 
 mtimated it to otliers. I will detain you no longer than to request that 
 hereafter, when any thing is published in the newspapers reflecting upon 
 this office, you will do me the favor to believe that we are acting for the 
 best, and have no intention of disregarding the directions of the Govern- 
 ment. 
 
 S. SWARTWOUT. 
 
 Hon. Levi Woodbury, 
 
 Secretary of the Treasury. 
 
 In conclusion, the committee cannot forbear remarking, that during 
 their whole investigation they have not found the case to which the laws, 
 as they already exist, do not apply, or in whicli they are defective. The 
 permanent provisions of the laws constitute every necessary check upon 
 collectors, receivers, and disbursers of public money; and the checks 
 wliich, by law, have been, and may be, created in the discretion of the 
 Executive, have only to be attended to, and applied by those whose duty 
 It is to superintend the execntion of the laws, to ensure faithfulness, and 
 detect derelictions or defalcations in public oliicers. 
 
 Indeed, in all the new recommendations which have been proposed by 
 the President or the Secretary of the Treasury, the committee have found 
 eithei' what already exists, or what might always have been prescribed 
 and enforced in the form of Treasury regulations, and what, if enforced,
 
 Hep. No. 313. 261 
 
 would have prevented the late defalcations; and these new recommend- 
 ations can, indeed, be regarded in no other light -than as so many proofs 
 of what regulations, in respect to the late defaulting collectors, receivers, 
 &c., have been hitherto wholly neglected by the present Executive and 
 heads of Departments. 
 
 The committee hereto append the Journal of their Proceedhigs, and 
 submit it to the House as a j)art of this repojt. 
 
 PART VI. 
 
 MR. HOPKINS'S SPECIAL CONCURRENCE IN THE REPORT 
 OF THE COxMMITTEE, APPENDED THERETO BY VOTE OF 
 THE COMMITTEE. 
 
 I have not had the requisite time for scrutinizing the report of the com- 
 mittee with that care and attention which its length and importance de- 
 serve, and which I could have desired ; and I should have preferred, for 
 this reason, to have presented the Journal of the committee, withoiu com- 
 ment, to the House of Representatives. But, as conthcting opinions pre- 
 vail in the committee, and are to be submitted to the country in the shape 
 of formal reports, I consider it my duty to say that I concur with the com- 
 mittee^in all the conclusions at which they have arrived, so far as those 
 conclusions apply to the extent and character of the defalcations of Sam- 
 uel Swartwout and William M. Price. 
 
 I should be faithless to my duty, and do violence to the most conscien- 
 tious convictions of my judgment, if 1 did not also declare my entire con- 
 currence in those conclusions of the committee which relate to the con- 
 duct of the late naval officer of the custom-house at New York ; to the 
 late and present Solicitor of the Treasury; to the Secretary and account- 
 ing officers of the Treasury Department, including the late Comptroller of 
 that Department ; and, in that part of the report which reviews the con- 
 duct of J. Hovt, the present collector of the customs at the port of New 
 York. 
 
 G. W. HOPKINS, 
 Member of the Committee.
 
 262 Rep. No. 313. 
 
 REPORT OF THE MINORITY 
 
 Mr. 0'.vi:n'^, tVoni the uiiuoriry of the conmihtee herein jrieiitloned, sub- 
 mitted the following: 
 
 25th Congress, 3J Session. 
 
 Congress or the Umted States, 
 
 la the House of Represoitatipes, 
 
 January 17, 1S39. 
 
 Rcsolmd^ 'rh;it tlie comninnication from the President of tiief United 
 States of the Sth of December, 1838, rehitinu,- to the detalcation of tjie laio 
 ooiiector of the port of New York, (except .so much as relates to the niodt- 
 ftoalion of the revenue laws,) be r6"ferred to a select committee of niut; 
 nietubers, to be appointed by the lIon.se, by ballot, whose duly it shall [)e 
 to inquire into the causes and extent of the late defalcations-of the cuslom- 
 liouse 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, naval and otlnu' odicers, and the deposite banks, respectively; and all 
 such facts connected with said defalcations as may be deemed material to 
 develop their true character. 
 
 Bq il further re.solved, That said committee be reqai)-ed to inquire into, 
 and make report of, any dei'alcations among the collectors, receivers, and 
 disbursers of the public money which may now exist; who are the d(j- 
 fanlters; the amount of defalcations; the length of lime they have existed, 
 and the C'luses wliich led to them; anii th'tt said committee have power 
 to scad for persons and pajiers. 
 
 T!ie Hiinoritv of t!i(j committee appointed imder the above resolutions 
 of the' House of Repr.;sontatives, beg leave to report: 
 
 That the conmiitti;e entn'ed on the duties assigned them soop. after the 
 passaue of the resolutions. At their lirst meeting and organization in the 
 city oi' Washington, a resolution was offered in these words: 
 
 Rfsolvtuf, That the President of the United States be requested to cause 
 this coiUJUittivi to be furnished by the proper ExecUtivf; Department with 
 a table showing the defalcation-; which have occurred ajnong the collect- 
 ors, receivers, and disbursers of public money, and other public ofucers, 
 since the 4th day of March, 1839 ; the names of the defaulters ; the amount 
 of each defalcatiirn ; when eacii case occurred ; tlie length of time each ciise. 
 has existed; what steps have been taken by the proper departments or 
 ollicers to prosecute the defaulter, and to .secure the United Slates hieacFi 
 case; iuid what defiultm-s are retained in the sajue otilces in which they 
 became defaulters, or have Ijeen ap})ointed to other (^lliees.-^ 
 which, in the opinion of two of ilio undersigned, (the third not being then 
 present,) was unauthorizfd by the terms or the spirit of the re':o}utions of 
 tlie Mouse, which are confined to the lute defalcations, and could not be 
 coustrued to include defalcations as far back as the 4tli March, 1S29, which
 
 Rop. No. 313. 263 
 
 had been heretofore reported to roiis:res^ l)y the Seerotary of the Treas- 
 ury, and no action had I hereon by the House. Under this view of thu 
 subject, and beheving it to be the first step to give a ladlxidinurian con- 
 fitruction to the power delegated, (and wliich opinion was confirmed by 
 subsequent events,) one of the undersigned deemed it a duty he ovycd to 
 the House To olFer an amendment, in these words: "Strilce out tl>.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 returne<l the fol- 
 lowing : "I decline to answer the 2d question." The witness was then. 
 p<?rmitted to retire. 
 
 If the information given to the witness of his rights stood in need of 
 justification or precedent, it is contained in the following statement of 
 facts which liad previously occurred in the committee-room: 
 
 Mr. Oweii.'i propounded to Mr. Joseph the fiftii question. 
 
 The witness wrote his answer in the following words, to wit: 
 
 "He owed us a very large sum of money on account of these stock 
 operations, as the revulsion of 1837 had occasi»>ned 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.
 
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