Columbus Democrat. [volume] (Columbus, Miss.) 18??-18??, 1839-03-09

by Struggling together, d.>0n.ed sentences, and put,
ing false constructors upon toe Official statements
Of honorable high-ujndcj end competent men.
SIR, ask yonr attention wh.e gave bFief cV-
pose 81 the policy and The result Of thar policy by
which Swar'w0u' was cuRb,tl in commit he it3u3>
which he dd, and the embauss>menls under whici,
the Secretary Of tie Treasury abolcd IN detecting
him.
l. believe the merchants bonds wore deposited
in he depo>ite banks in New YORK; SO was the
amount cf these bonds when collected, % the cred
II Of the Treasurer ui the United States. Swsr'-
wont made up bis account weekly with tie bans, on
Saturday. al 10 O'Clock Noaccouui was ever eN-
hhIicd ol moneys received h} ham Tor dates be-
tween Saturday 10 o'cork, ami Monday incoming
All MONEYS received after TO o'ct ok on Saturday
morning. anil before 10 n'cpck Monday morning,
were not deposited; og, 10 they were, rAey were de-
pos tel u his name, and lo lis individual credit, and
drawn upon his individual check. This was the
meaa~ hv which pn-tlnn Of The lcG'cuuun was
effected and un1ucsion-bly grew ou OF she CON
Hcciiun ol tie Treasury with Che hanks. |, is easy
to perceive that ts fraud could e. ava some time
whbrut detection. believe near 100000 of The
fraud occurred in this way
.. Owing 10 Ihe peculiar manner ln WhIchccr'om
funds came into the hands of the collector 40 New
YORK. (and perhaps other poDs) and To the RIGHT
which ne had to retain portion of those funds w
his hands, they were KEPT cut OF SlGht and indeed
out OF the knowledge OF tie Treasury Department
This occurs in this way. When an Importing mer-
chant receives from his vessel a cargo of goods up
on which the duties have 70 be paid IN cash, ~ add
vance, the duty on which may be known, HAT Is,
the class Of good, aad tle amount Of duty on that
particular class may he Auown but il may take
some time to calculate anl make up the amount of
duty that may be due on the whole. The merchant
dcsirons to have the use OF his goods, agrees with
the collector to pay what the duties when made up,
will probably amount TO- The collector, IN this
case, generally receives sum amounting to more
than the duties when made up. In tins the is IuSt-
fable, as he is bound oluok 10 the security and iu-
tertSt of the Government He retains M his hands
what he supposcS may be the ovcrpug between
what he has received and what may really BE- found
to be due when the account is made up. Euusac-
tons of this character are OF every day occurrence
The sum thus retained is moi reported OR may not
be- and was not in SWaftwouts ca>c) 10 the Trea.
sury, but was kept (as preleuded) for lhe purpo.c
Of paying back 10 tie merchant wha wa, due him
This surpius--i. It may be SO caled--in Suart-
wouts case, has constituted, at all times, large
standing fund part Of which, It is easy to perceive
might be absIracted without the knowledge of any
person but the colltc himself; wuhoutthe ku9Ni-
edge of the Secretary Of the Treasury or any OIL
Ger Of his immediate Department This fund. /
believe IS called "cush deposited to meet unasccr-
tanned duties From thjs fund Swatiwnut abstract
ed about Slj00C0
s. Duties paid under protests This cara-
lU.,s ..iui nla puts .u lAc power OF tie coIrc-
tor 10 dejaul Che Government oul Of almost aug
sum. 1t IS as follows: AnjwrurtHg merchant has
received cargo Of goods Con which cash is p1ya-
bic on demaud) of particular cass, and, cuusc-
queutIy, the subject Of higher duties; SO sDppos.
the collectors. The merchant contends that bis
goods re not OF sach class; the collector con-
tends they are, and demands the duty due Oh such
goods. Tie merchant, in oydrr TO avail himself Of
the and practical benefit Of bis CoGQs yays the
collector the amount he demands but at the same
time, enters his protest, and commences Suit for
what he suppoSes lie has 0verpaid. The collector
not knowing what the result Of the suit may be, and
not knowing whether or not he would recover tie
amount in controversy from the Government, should
ne pay over 10 tie credit Of the Treasurer Of the
United States retains il in his bands for bis own
saiety-aud believe the United States District
Court has decided that he has right 81 10 do. until
legal decision shad. Should he pay the money
IN protest uvertothe Government on it's reception,
and the suit should terminate in favor of The mcr-
chant, il has been doubtful f be- rould oct relief in
any other way than through Cougress--a slow
method, and somewhat uncertan-beOrc which an
execution might sweep from under him bis whole
property. rom tins fund IL IS supposed that Swart-
won't distracted q bon, $3.50 600 or $500 600 which
he had il IN his power 10 do without he knowledge
OF the Treasury Department. or the ucans OF de-
lection.
4. When the banks suspended payment, there
were IA number, Of merchants louJs, un thousand
due for duties, and the amount due on these was
upwards Of five millions OF dollars. Tie bonds
were withdrawn from the banks and an extension
given by the Secretary Of the Treasury, in conse-
quence Of The pecuniary embauaesmcnls consa
quenl upon the suspension by the banks Al tie
extra esSon,Co04rcss gave an additional extension
OF nine months, rs well upon those bonds on which
suit had been commenced rs those on which IL hld
not The withdrawal Of the bonds from the banks
the extension Of credit given on them, their ygsl
amount due, and the great number nl bonds thrown
into tin collectors office, gave new direction, and
threw all the business ~ such confusion, thai sCers
by the Letter 81 hir. Fleming, impossible 10 know,
Tor time, IL what situation the bnnda and tie bu-
sness OF the Office were; and il Use officers hem
selves OF tie eusom-hOuse could not tell in what Sit
uation things were, relating 10 the duties and bonds,
how was i possible Tor the Treasury Department to
know any thing about it, or to know 20 much to
nablc It 10 detect the frauds which SWartwout was
then daily and hourly conmlttDg' The act ol the |
Of the bonds, aud their extension, and |
the Commissions tbereupon, not only putt IN the pow
er Of Swarwout 10 commit frauds, but DISTRACTED |
the channels through which the information would |
have flown TO the Secretary, Of the fact of frauds |
beng committed, and consequently Of the power Of
detecting them.
5. The collector is bound TO render quarterly |
accounts 10 the Treasury, but he has three months
after the expiration Of each quarter to make UP lis !
accounts, and tiree months after the expiration ol
his term OF Office before he can be considered pub
shed or prosecuted as pubic deiauIler Let US
see To what extent this legal privilege may have op-
Grated 10 the fraudulent purposes OF Swarwout
and 10 the embarrassment Of the Secretary Of the
Treasury TO defect bis frauds. Tile banks suspeii-
ded payment on May lIih, 1887 SwarIw0uts
lime expired on TIE 3sih Of March, 1898. Then
i is found that he had the advantage OF the pos
session ofthe bonds TO the amount S5OC0000 TIE
advantage Of the extension given (adyantage, be-
cause the Secretary Of the Treasury was uerchy |
prevented from deteclon) and all tie confusion and