The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-04-03
PARTI
THE DEFALcATIoNs OF Mr. swARTwouT.


C Auss ST diseoHfinEaHes Of lhs rse of hanks as
d<postortss Of ne patiie moasss aud permitting The
sane 10 Accommodate IN ae hands u Mr.. SEart-
wout.
py tho deposile Get Of 1885, construed by the
feo1ent practice Of the Secretary Of the Treasury, the
has been 81 no Time precluded from the
of banks as special dfrosores u the public money,
10 preference allowing The same 10 accumulate ~ The
hands Of the collector
For instance, as appears by the testimony o. me
csshers Of the Bank Of America and Of The Manhattan
Company. each Of those banks was used a. special
depository o The Government for large sums DUNG me
period IL their suspension OF specie psymeuts' al
banks might have beep. in like manner, 80 sseo;
IL appears, further. from the testimony Of MI ooa-
bury, answer as that during the suspension OF specie
~, ,,ep,s crcnIsrs were issued in substance. that
where no general deposlie banks remained that eon'd
be legally employed SUCH the collrcsing oiheers
rna III place the surplus Of their funds, increasing oe
yond certain specified s,noDnts, not exceeding Their
official bonds safe hank ~ special deposite,
10 he drawn sgsin Only on dtss Of the Treasurer,
placed on the collectors and receivers and payable at
that bank"
Had the Secretary Of the Treasury instead Of dis.
continuing the Of banks and leaving Discretionary
with the collector 10 deposlie not specially IN bank,
made inn ers,ise collectors and receivers thus 10
have used hanks, the evidence weekly, Of the colec
tors deposte bank would have accompanied The col
lector's Of the 'sct that the money on
hand, and had not been used. When. however, this
species OF check upon the collector was abandoned the
return oil the collector alone necesssrlv relied
and, although dad state truly the amount OF money col
lected IL would fail to be evidence Of satisfactory cha
racter that il had not been diverted from public pr-
ysle by the collector The following testimony
illustrates the evident loss Of portion Of The public
money to the Government ~ the case Of Mr.. Swart-
wout, from the deception he enabled to practise
from week 10 week respecting the money actually on
hand by Of the power he had Of retaining in
his personal control, instead Of deposing it in
bank
Mr. Fleming, auditor of customs, examined By
Mr. Smnh.
Question Ill. Did you make out the weekly cash
return OF Mr. Swarwout 10 the Secretary of the Trea-
sury bringing the account up to March %. 1898,
fodhd in House document Ii, p IL, and showing
balance OF money due cash Of 500 ,096 40l
Was said balance the true result and state Of that
branch OF Mr. Swarinonts accounts and did he in
truth, have on hand within your knowe dye, any such
amount Of money al the time said account was rem
dcred
Answer The said weekly cash return ,ras made out
nv me. The balance of Ss20l ,096 40 the true
suit and state Of that account provided the cash book
from which the data were derived was correct 49,
Whether Mr.. Swanwout had on hand that amount Of
money at the time the rendered, am una
BILE state, having knowledge Of that portion Of bis
business
Question liz. Previous to the dscontinuance Of
banks as general repositories OF the Government by the
Treasury Department, not, certificates Of
the cashiers Of the banks used repositories required
by the Treasury Department 10 accompany the weekly
cash accounts rendered by Mr. Swartwout 10 said De-
partmcni. aud vouchers Of the account and ina, the
money was, in fact. on hand Since such discon-
tinuance OF the Of banks repositories by the Trea
sury Department, has any species OF voucher been
CURED TO he furnished IN coInexon with the weekly
turns Of the collector prove that the money reported
TO he on hand was 50 ia fact
IN ,ttr,pa IF hank Inv
the Treasury Department. certificates from them
required accompany the weekly returns vouchers
for the transfer. and that the money in hank.
Since such discon,inuance. ! know Of no species of
voucher required by the Treasury Department to be fur
nshed IN coDnexion with the weekly returns denote
that the balance Of money reported was in fact, on
hand.
il is. then, apparent that had the deposiring system
Of banks been continued Mr. Swsrtwout conld have
had money, beyond the collections Of single week.
ceeding the current expenses Of his Office, to have
tanned on gong out OF office and the evidence Of his
having diverted any previous 10 that me and that
all previous collections 10 hank would have been
regularly derived from the banks, well in Mr..
SwartWouts official returns
Gauss G. The negligence and foitre he Secretary
ofihe Treasury u discharge his duty, as The he0d of
he Treasury DEPARTMENT, CHARGED IN lao 1rika tie
superintcndcncc Of The collection OF ne rsrenue.
BY the act Of September 2. 1880 section 2, it is
made the duty Of the Secretary Of the Treasury d.
gest and prepare plans for the improvement and manage
ment Of the and for the support Of public credit
prepare and report estimates Of the public and
the public expenditures 10 smpcrintead the collection of
ne rerenue; 10 dceide The firms Of kcepin. and
stating accounts. and making ,efurns,r dc.
BY the act Of May s. 1892. section g. it is provided
" that the Secretary Of the Treasury shall direc, the
supernendence Of the collection Of the duties i'm
post and tonnage, he shall Judge best and by
ton Of the act !" that the forms of keeping aud
rendering all public accounts whatsoever shall be pre-
scrbed BY the Department Of the Treasury Z"
BY virtue Of section Of the above rected act APP
pears the following extract Of circular Of the Sc
creisry that from thenceoward the duties originally
confded 10 The Secretary we're in part assigned to tho
Comptroller, to wit:
"Cireuiar TO The collectors of The customs.
"TREAsuRy DEPARTMENT,
October IS 1892
"SIR Pursuant to the discretion vested in me by
the 9th section Of the entitled An act making alte
ralions in the Treasury and War Departments have
concluded to commit the immediate superintendent Of
the collection Of The duties Of imports and tonnage to the
Comptroller Of the Treasury.
"You WILL therefore, heDceforth correspond with that
officer relatively TO oil matters arising out Of the laws
which respect the laying or collecting Of those duties
and you will consider his communications and nstruc-
tons, in regard TO such matters, Of The same force
and validity which they would have il coming from
This, however, not he understood 10 co,npre-
bend the disposition and payment Of the moneys &C.
cruiug from those duties, which, heretofore will be
under my immediate direction.
'tAccordingly all the returns and documents which
you have been accustomed to transmit to the Secretary
Of the Treasury hereafter TO be transmitted to the
Comptroller, except the following: l. Weekly return
Of moneys received and paid 2 Monthly schedule of
bonds; 3. Monthly abstract Of bonds unpaid 4. Paid
drafts aud receipts FOR moneys paid banks and other
WISE under special directions from me-
Through oil periods since 1892, well before,
tIn Erst If, h..
mcnt under the act OF 1882 the ,ceeky and monthly
turns OF collectors expressly reserved the Secretary
in the above circular have been required TO be made to
the Secretary, and have been SO made
Whatever may be the construction OF modern days,
Of the or utility Of these returns the Secretary