The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1838-11-17
COMMUNICATIONS.
10 tie Editor Of Lie Aadisoatan.
THE NEW YORK OBSERVATION-DISCLOSURES
TREASURY DEPARTMENTS.

TnEAsURY DEPARTMENT..
The like OF the late defalcation In New York has
never occurred since the formation Of our Govern
ment. We have seen heavy losses to the revenue
from failures of merchants and also by failures Of
Banks but, we have never before had deialcaon
of one Of the officers of the Federal Government OF
like magnitude, which probably exceeds double The
sum ever losi by any merchant and goes beyond the
sum lost by all the Banks put together
The attempt is already made by the official organ
of the Administration TO implicate the Merchants"
and the "Federaisls"; and even goes so far as TO
suggest, that had Banks never been employed as de-
posilories Of the public money, such "abominabie
peculation" could never have occurred, The object
is plain. II Is to divert and draw off the public mind
from those who through delinquency Of their ofhcial
duty have been the principal Of the defaca-
tion.
Who that has the least knowledge Of the manner
in which the public business at the Custom Houses
Is conducted and the laws and regulations provided
to govern the business between them and the Treasu-
ry Department but must be sure that there has been
neglect upon neglect of the most reprehensibe cha
rac,er that has permitted transactions OF the kind
that have accompanied this defalcation to 60 unds-
covered Where has the Naval officer been whose
duty it is to operate check on the Collector in all
his transacions2 Ii is said these defalcaions com
menced as early as 1890. What has the Naval Off
Ger been doing that he never detected them2
Above all, what hasthe Second Secretary of the
Treasury been occupied about, that he has permitted
the public money TO be secretly distracted TO the
amount Of more than million and quarter OF dol
lars Z The writer OF this knows well that what has
occurred, was predicted by more than one person,
within The walls Of the present Treasury building
nearly four years ago; and, that prediction was often
repeated not as mere speculaons but founded on
strong reasons then existing .
1t is said the defalcation was managed in the cash
account, until it became Of too great magnitude Ion
ger to keep it easily concealed when il was changed
from that to the bond account This, il is said, oc
Cured principally after The general suspension and
extension Of paymen, of bonds in 1887
II is well known that under the regulations the
Collector required to deposi,e once week at
the credit of the Treasurer Of the United States the
money collected by him, and forward certificate of
the same TO the Treasury Department. Where was
the Secretary of the Treasury, that after the depo
sites were made for which certificates were forward
ed to him. that he permitted balances Of hundreds on
hundreds of thousands of dollars still 10 remain in
the hands of the Collector This alone was su fiji
Client to have awakened his suspicious, and led to
an investigation even without prediction of defal
cation, which might have reached his ears at the
time made above referred TO.
II is notorious that for many months in 1887, the
| Treasury Department was obliged to send from here
money pay the expenses incurred at the New York
Custom House, or payable there This TOO, at
time when the Collector held unaccouned for mil
lion and quarter of dollars of the public money
What commentary on the sagacity of the head of
the Treasury Department
This is not all. The Secretary in his annual
port in December, 1887, estimated the amount of
postponed bonds at four million dollars Thus it
stood until May following, when, behold it dis
covered there an errorl In place of the amount
being four millions, it was said by Mr. Jones, of the
Committee of Ways and Means that it would
amount TO six millions, "bu believed to be nine mil
lions" Probably it was the charge of the amour,
together with an addition to thunder the latter ac-
count, that led 10 these discrepancies and this con-
fession. But where was the Secretary Of the Trea-
sury all this timed Where the monthly, or even
quarterly list OF bonds unpaid, as well as running
10 maturity, that the Collector by the regulations
was required to forward the Department.
Are the accounts Of the Treasury Department
kept in that loose irregular manner that il cannot I've
ascertaned whether postponed bonds amount to four
million or to nine million dollars7 1t would seem
SO from Mr. Jones' speech, who was member of
The Finance Committee No wonder then the De-
posite system failed No system whatever could be
devised, however perfect in ITSELF that could with
stand such bungling and neglect
As 10 the sureties in this case Will any one for
moment suppose they can be held liable to the ex-
tent OF a single farthingl Common sense forbids it,
The cnlpable neglect that the affair carries on its
very face are enough to exhonorate thousand
suretes The report of the Secretary of the Trea-
sury made to Congress last session and printed Do-
cument 29lD furnishes evidence of Mr. Swart-
wouts irregularities in his business that were COM
planned of as long ago as 1885.
II any thing had been wanting now, to satisfy any
one, OF the many who have entertained the opinion,
that the present Secretary of the Treasury has shown
himself wholly incompetent to manage that Depart
ment, and that the whole course of policy connected
with its management has been both imbecile and pal
tering in its character; l should think there is
pie proof furnished in the in question.
| When all the circumstances connected with this
transaction taken into consideration it cannot be
otherwise, but the public voice will demand
| thorough investigation BY committee of Congress
The people, whose treasure has been distracted from
| their Treasury, will expect and have a right to
know, all the particulars attending the transaction
| They will expect to have it made clear to them as
the bright at MONDAY that the sentinels in the
watchtower have been true to the trusts confded to
them. This is af1iir in which the whole nation
is interested, and therefore, ought to partake of
party. These considerations it may be reasonably