Martinsburg gazette. [volume] (Martinsburg, Va. [W. Va.]) 1833-1855, 1838-12-26
swARTwoUT's DEFALe;ATIoNs.


II now appears, from official statements
by the Comptroller, that the defaIcation
amounts 81 ,374,1 and that the Secre-
tary apprehends that the whole amount
Of the deficit, will not be less 81 ,250, 600
1t further appears, that from the com.
mencement of these Withdrawals of the
public money, the fact was known to the
Cashier, and that the assistant Cashier.
MIR. Philips, for great part ofthe time,
kept an account, for his uses and pur.
poses" Of the specific sums taken aud OF
the fund from which they were TAKEN
The Secretary says: 1t is supposed
that they could not all have been eyentu.
ally discovered and exposed, except by
the all OF those persons in the Custom
House at New York who were aware of
the receptions pfactised."
Mr.. Philips says" The amount col
lected daily would be placed to the cre
dit OF Samuel Swartwout, and subject TO
his drafts, without particularizing the
purpose for which they were drawn,
(which was the invariable practice;) and
the same was always the case in regard
to all monies collected through the banks
on account OF Customs, during the period
before stated, and he avaiIed himself of il
as he required"
According 20 the account rendered by
Mr.. Philips, deputy Cashier, Mr.. Swart.
wout's deialca'lon during the year 1880,
1881, and 1882, amounted 10 $50. sol
consisting principally Of forfeitures, recei-
we'd for the United States and not paid
over.
In 1888 the defaIcation was increased
10 $35, 29S
In 1884, treasury warrant for ST,
637 was received and not PAID over, and
cash Withdrawn $6,261 which with
smaller items increased the deficit TO
$5O,37O
In 1885, Cash withdrawn about AZ.
600 dollars, which with sundry treasury
warrants not paid over, amounting to 81
595 dollars, and several smaller items.
increased the deficit 10 SI37 .O6i
In ls36-Cash " retained for refundinp
merchants" not paid over in cash nc.
count SOTO dollars. Cash Withdrawn.
97,S40 dollars which with other items,
increased the deficit to $336,7Is
In lS37-Bonds fallen due and not ac
counted for, GIL, 295 dollars; cash with.
drawn about $4,000 which, with other
items increased the deficit to $l,OI6. 955
In 1888, alter deducting, according to
Mr.. Philips account from the sums with
drawn, for money returned, $l93, 900, the
deialcallon was increased to ST. ,374,1I9.
Mr.. Fleming, auditor of the Custom
House, in letter addressed to the Soici-
tor of the Treasury, dated 10th Nov.
1888, says-"in the month of June, 1897
being engaged in proving the amount of
bonds paid, found there was dscrepan.
cy between the bonds payable and bonds
PAID, and that the latter fell short of the
former about five hundred thousand dol
lars. The circumstance | mentioned to
Mr.. Philips, the assistant cashier, whose
office 1t is to keep the cash book, and was
informed by him, that this book contained
the record of all the bonds paid to the 60
vernment IN that quarter. Upon this re-
ply closed the Bond account as it exis-
ted" &c.
When MIR. Swartwout's term of office
expired, II became necessary to make "a
thorough examination of all outstanding
honds, and to render abstracts for The de-.
livery of the same TO his successor. This
work was completed, after much labor. in
the month of August last; and when the
total amount was ascertalned it was found
to fall short of the amount appearing due
by the books Of the office, by six hundred
ana iorty-sx thousand dollars. This a.
farming circumstance mentioned to the
Cashier, Mr. Ogden, and requested him
to communicate the fact to Mr.. Swart-
won't. On the following day, the cashier
observed to me, that had better inform
Mr.. Swartwout myself Of the condition of
the Bonds. at once did so. He seem.
ed greatly surprised, and remarked that
II must be impossible that so large def.
cheney could exist, and requested that the
account might be re-examined. 1t was
accordingly re examined, and every bond
found paid by the records of the Office
was marked off.
Still the same deficiency existed. Al
list was then prepared of ell the bonds
unchecked and unaccounted for, and was
placed on file in the Office. Prior to this
and during the re.examination Mr.. Swart.
won't sailed for England. ~ Washington
Correspondent ofMe ~ Y. Courier.
ATHERToN's REsorrrYo~s A. III