The Madisonian. [volume] (Washington City [i.e. Washington, D.C.]) 1837-1845, 1839-03-20
(Coatinusd.)


This branch OF the subject viii b. considered IN
ii. The ifresponsibiiv Of Mr.; swartwout IN Pc
cuniary character ar-the dne oil MS aPpoin'men''o
2i. Culpabie disregard OF law, and neglect Of
Official duiy by the late naval officer at New York
81. CulpabIe disregard Of law, and negeci OF OFF,
ciaI duty by the First Auditor Of the Treasury.
An CulpabIe disregard Of law, and neglect uf off,
cia duty, BY the late and present First Comprolers
Of the Treasury.
5lh. The disconlinuance Of The use Of banks as
repositories Of The public moneys, and permitting
the same to accumulate in the hands OF Mr.. Swarl-
won't.
9th. The negligence and failure Of the Secretary
OF the Treasury 10 discharge bis duty the head OF
the Treasury Department, charged BY law with the
superintendent Of the collection OF the revenue
CAUSE 1T irresponsibilify of Mr. Swartcoaf, IN
peeaaiary character, al the time Of ais aRpointmenfn
eGes.
There is obvious jeopardy OF the public Interests
whenever appointments TO Offices OF high pecuniafy
obligation are conferred by the Executive upon IN
diyiduas who are VIGOROUSLY wanting IN reputation
Tor responsibility in financial matters
There probably cannot, in human relations, be
brought TO bear upon human fraiy and cupidity
stronger temptations to err from duty and rectude,
than spring from the possession and control (Which
must, from their nature be somewhat exclusively by
individual Office holders Of large and extraordinary
masses of Government money. Unless the checks
instituted TO counterfeit such temptations are nume-
point the moral restraint against mal-conduct OF
officers thus in'rusted with large pecuniary means,
which, at times may seem not even TO be exerted by
Government Is very apt to relapse into mere urk-
ing apprehension Of early detection. The conse-
quence Is, as soon this apprehension Is overcome
by any known remissness on the part of those to
whom they are Immediately accountable, or disco
vers device by which elude the vigilance Of their
superors In office, they are prepared to regard and
treat the public revenue in their hands rather cas-
means of promoting individual interests, than an
instrument created solely for the service of the peo
pie"
It was well remarked BY the Industrious prede-
cessor" OF the present national Executive, In the
earlier, and, perhaps, purer days of his admnsira-
ton OF the Federal Government that the possession
OF official station, alone, exerts corrupling intiu-
ence upon the generality of men, There are, per-
haps," says his first message TO Congress, few men
who can for any great length of time enjoy Office
and power, without being or less under the in
fuence OF feelings unfavoable to the faithful dis
charge Of their public duties. Their integrity may
be proof against improper conside raions immediate
ly addressed to themselves but they apt 10
quire habit Of locking with indifference upon The
public interests, and Of tolerating conduct from
which an unpraciised man would revolt"
If naked official station be thus pregnant with
temptations unfavorable the faithful discharge of
public duties, how alarmingly accumuaiive these
temptations become when superadded to official
station the temptations which flow from the collec-
ton, keeping, and disbursement OF vast sums OF mo-
ney drawn directly from, yet for the most part, al
II there be any thing that can add to the evils Of
the known temptations inseparable from the power
of official station aud public revenue combined to
dsmoralize the government OF people, to impover-
sh their public treasury, and to iniuSe into them
lust Tor "ihe spos' Of political servilily and cum
ming In preference to the rewards attendant upon
the pursuits of honest and honorable industry It is
to be found in the appointment 10 official stations OF
high pecuniary obligations, ct men VIGOROUSLY ir-
responsible, and whose lives have proved them in
competent to save for themselves; sure effect
must follow cause, so sure will the temptations al
ready spoken Of prove but too successful in the pill
age Of the public treasury, when brought TO bear, by
Execu i've patronage, upon any man, class OF men,
already excited by the habitual indulgence Of ven-
tureSome speculationS, and by The alternate hopes
and disappointments successes and enbarrassments,
incident 10 such speculaions OF this class Of men,
and such man, was Mr.. Swartwou in reputation
and in fact both al the time Of his original appoint
menl TO the relationship, in 1929, and Of his reap
pointment, in 1884. He was wholly irresponsible
In peeuniary reputation, VIGOROUSLY prone 10 hazaI-
dotiS speculaiions, deeply embarrassed from hem,
and always 10 want of funds. The committee, there
fore, regard this as one of the primary OF Mr.
Swariwuus defalcatiOnS and OF the consequent loss
of the public money which was nrusied to his col
lection and keeping In confirmation of this view,
the suboined examination and testimony of wit
nesses adduced
Joseph L. Joseph was sworn witness.
Eraminedby Mr.. Orens.
Question l. Say, IL you were acquainted with Mr..
Swarlwout when collector of the port of New York,
whether he was, during his official life, purchaser
and speculator IN the stocks1 II yea, state the diff
ferent kinds in which he speculated, and The amount
Of those speculations.
Ans,oer. am well acquainted with Mr. Swarr-
won't, and knew him as collector OF the port OF New
York. knew he was frequently engaged in very
large speculatons in stock from personal know
ledge, and from Tumor. He speculated in Long Is
land railroad shares Stonington railroad shares,
Harlem railroad shares Morris canal stock, and
others, probably, of which am not aware or do not
Dt,ntt H. 4
speculation do not know; but l considered him
always large operator.
Question Q. Were you or your house his agent or
brokers in these transactions portion Of them
If yea, state the amounts of those speculations in
which You had personal agency; and whether they
speculations of Swartwou alone, or were other
persons interested in them; and who were those per-
sons?
Ans,oer We were his brokers in some particular
stock transactions in the purchase of Delaware and
Hudson shares, Stonngton railroads shares, Long
Island railroad, and probably some Others which at
TINS moment do not remember. AT the period Of
our stoppage we held for him over a hundred thou
sand dollars worth of stocks, which had greatly de-
preciated from the cost price and which he previ-
ously had begged US to hold until there should be
change Of times. They were for Swartwout alone
and probably reached at one period with us TO two
hundred thousand dollars.
Question 3. Were these specuations of which
you speak, or portion OF them, fortunate or ad-
verse; If fortunate, state the amount of profits
made them; II adverse, state the amount OF loss
sustained.
Answer. We once paid Mr. Swartwout some
seventy or eighty thousand dollars profit, made on
Morris canal stock. do not remember of his ever
paving our house over two or three thousand dollars
OF loss. His last speculatons resulted in loss and
he was unable to pay, and borrowed some money for
us with the view OF aiding us TO bear up against
these differences, actually lost, and the stocks
held which we did not sell. The loss
twenty thousand dollars
Question 4. Do you know OF your own knowledge,
or from the information OF Mr.. SwaTtwout, the
amount of loss or gain upon other specuations in
stocks in which you had no personal agency State
the same accurately as you can.
Answer do not know of his other stock opera