Alexandria daily gazette, commercial & political. [volume] (Alexandria [Va.]) 1808-1812, 1811-09-12

9Th. That the Smiths, instead OF fiac-
inc funds in the hands Of the draWees,
they appear to have ultimately Deeh III
delhi tn them in the considerable sum Oh
S67,922.
9Th. That this amount drawn Tor on
their agents and the agents OF govern
meat. and contracted to be placed at Leg
horn for the use of government, 1oas No
rer reaitted, but returned to William l.
Puryiance. one Of the agents, 7cltn "tere
est, in Baltimore, after dissolution VI
the firm of Degen, Puryianee ara 70.
the agents of government, and alter 'lo
said Purviance had formed another con-
nexiOn in trade.
7th. 1t also appears by Mr.. Gaila'ih
report, that although the amount tlus re-
turned in Baltimore to one OF the part
ners after the dissolution Of the firm, was
so returned at the risk of the drawers yet
the matter was so contrived as to eXohe-
rate the drawers and throw the debt upon
William Y. Purviance, then debtor, Oh
the firm of Degep. Purviance ana 20. anu
who is now sued by government and is IN
able to pay.
A cursory view of the Secretary's re-
port and the accompanying documents
substantiate these facts, and rendered IL
equally incumbent upon the president to
have dismissed Mr.. Smith, when the DIS
closure was first made. as it was upon MI.
Smith to have exposed Mr.. Madison be-
fore his dismissal. But Mr.. Smiths ca
pacity and integrity were OF little moment
to his employers, while he was content to
remain an obsequious and complying tool
of power, nor were the dangerous designs
of the president at all alarming to the pa
triotism Of the secretary, as long as ne
could find employment.
The payment of interest by the Smiths,
is of itself evidence that, the money they
drew from the public chest, the amount
of which they specially contracted TO
place at Leghorn, was retained in their
hands and applied to their own purposes.
OF course, they traded, in SO far, upon the
public money, an advantage in addition to
that Of being able at all times to raise e.
normous supplies of cash by selling bills
without funds. This, at any convenient
time when pinched by want, there was the
less scrupic in doing, as their own agents
and creatures were the drawers. Had
thew drawn on any other friend in Leg
horn, under the circumstances mentioned
by Mr.. GaIlatin, that is, zcith0ut FUNDS,
their bills would have been protested, and
they accordingly cut off from a most lu-
crative traffic, requiring neither capital or
credit. But the art Of drawing on the
mutual agents of government and them
selves, by the operation of Sc simple en-
try" in their books, enabled them to pay
the money from one hand into the ether,
funds or 10 funds.
Mr.. Gallatin was understood to have
been of opinion, that the Smiths were at
least liable for the amount returned to
Pulviance in Baltimore, who had ceased
to be partner of the drawees, and there
fore cOniided in at the sole risk of the,
Smiths. It seems he now thinks the
Smiths have been cxonerated by the allow
anee of the sum fixed in the liquidation
of the business of the house, by Chs.
Degen. although that liquidation was Of
course made since the dissolution of the
firm, and may have been the result Of a
collision to defraud the government. Is
it not an unacceuntable and suspicious cir
cumstance, that Degen should have allow
ed the payment and given credit, in the
liquidation, to w. Y. Puryiance, when the
latter is stated to have been indebted to
the firm of Dcgen. Puryiance g. Co. in
the sum of S 5i,S7s? Qeszos $3.50
One thing is reduced to certainty: go
yernment has lost the money; who gain
ed it, the parties implicated will take care
to keep profound secret.
However correct in lac, may be the
opinion prematurely and improperly given
by Mr.. Gallatin, in equity, government
would recover, if collision or fraud should
appear, which indeed are presumable upon
the face Of the transaction. Wherefore
the payment, the unauthorized payment,
- II 4 "a II