The republic. [volume] (Washington [D.C.]) 1849-1853, 1849-08-30


ter the 2sh of Apii, lS4s, when Secretary Mason,
for the first time, received information that Mr.
Osborne had failed, and his remttances were I'M
availing. Anxiety had been felt lest the squad
ron might be embarrassed by delay or obstruction
of these remittances by the disturbed condition of
business produced by the political condition of
France, but no doubt or apprehension was enter
tanned that the money not safe, that the
Government would lose, or that the remittances
were not made judiciously, prudently, and law
fully. After this information received, no
more payments or advances were made
". 1t is stated that the two treasury
drafts, of $50, 900 each, alluded TO by the
Republic, s'were ISSUED in November, l847 /,
and in March, l84S, and received in due
course of mail by Mr.. Denby's selected
and accredited agent in this country"
V. 1t is averred that, sin point of fact,
the failure of Mr.. Osborne, and its
probable effect, was communicated to the
late President, acithout delay, after 1t Das
knovn to the Secretary Of the Mary"
The Union then proceeds to explain the
duties of the Secretary and the President
in such case; and, as this opens very
important and very interesting subject, we
shall give the explanation Of the Union at
length, and its attempt to reconcile the
statement of Mr. PoLK's message with the
fact Of Mr.. DEHBY's default:
The second section of the act Of Congress of
January 81 1928, directs the mode of settlement Of
accounts by the proper officers OF the treasury, and
the Sd section declares 'that every officer agent
Of the United States, who shall offend against the
provisions of the preceding sections, shall, by the
officer charged with the direction of the department
to which such offending officer is responsible, be
promptly reported to the President Of the United
States, and dismissed from public service Provided,
That in all cases where any officer, in default
aforesaid shall account to the satisfaction of the
President for such default, he may be continued in
office, any thing in the foregoing provision to the
contrary Notwithstanding
And by the 10th section Of the Sub treasury act,
after forbidding exchange Of funds, under certain
circumstances, and requiring the payment, by dis
bursting officers, Of the identical money furnished
them for disbursement II Is declared; That II shall
be and is hereby made the duty of the head of the
proper department Immediately to suspend from
duty any disbursing officer who shall violate the
provisions of this section, and forthwith to report
the name of the officer or agent to the President,
with the facLof the violation, and all the circum-
stances accompanying the same, and within the
knowledge Of the said Secretary, TO the end that
such officer or agent may be promptly removed from
Office, restored to his trust and the performance
of his duties as the President may just and
proper.
f'Tbjs report made, and Mr. DENLY was
quired ~ some TO the United States and settle his
accounts, He was oa distant station and although
il might and probably would be found, that the
failure of his agent TO remit him so large sum of
money might be attended by his total inability TO
make good the loss, it was not deemed just, Mr..
Osborne acknowledged that the loss had occurred
while in his hands, and before the money had
reached Mr. DENLY, To act on the supposition that
DENLY could moi replace it. On his return, il
betDg ascertained thai he could not make it good,
il was determined that he could not continue In
public emp,avmeHi, and his resignation was &c
cepted In the division Of the duties and the dlstri-
button of the public business among the several de-
partments il would have been strange II the power
of supervision of officers agents attached TO
either should have been given to another. Inc
Secretary of the Treasury has no control over
navy agent or 9 paymaster in the army. The re-
ports required to be made to Congress OF ofhcers in
default under the 18th section of the
act, 10 be made by the Secretary Of the Treasury
Ii Is that he is required 10 report ofcers offend
ing against the 18th and 18th sections To the Pres
ident and 10 Congress. But the President is NOT
q,Iired 10 make any such communication, nor Is the
Sseretary Of the Nary. SO that, whether MIR, Den
by's case within the provisions of the act OF
1928 of 1916. the report required OF the Secretary
of the Navy ,sas made and the President exercised
his power conferred by Inv on the subject IL
not a subject deemed appropriate, in the an
nual report, any more than would have been the
case of a purser in default, of contractor for
supplies who had broken his contract and compelled
the Department To purchase in open market al
higher prices than those Of his contract No report
on such a case, il is believed, can be found. But,
assuming facts which did not exist II Is charged
that the Presidents annual message 10 Congress on
the operation of the independent treasury act In re-
gard to transfers Of the public money csnpo, be sus
tained if he knew OF he failure Of the navy agent al
harseies This is at last Ia real object OF The whole
effort Of the Republic. The PresrH~nfs lsheuA
though broad must be interpreted accor,,h W W.
meaning: Under this system President Polk "a
ted, the public finances have been carried through
foreign war, involving the necessity Of loans and
extraordinary expenditures, and requiring distant
transfers and disbursements without eTnbarrasz-
ment, and no loss has occurred Of any of the public
money deposited under it, provisions 10 ,oas OF
trdnysrs made under that system from depositu,
10 another, from Ner York 10 Ndr Orleans in phicl
the opponents 9f the system had anticipated 80 much
loss, that the Presidenf spoke He did not alitlds "a
trangers tchieh that system did not gipe authority "a
the Secretary u the 7reastuy 10 make. He spoke a,
The system IN ifs legitimate sphere, tothin The limits o.
The United States. But, what u conclusive, he die
know that MIR. DENLY had not accounted for the
money issued under his contract and il would b,
Ia impute both 10 him and TO the Secretary o
the Navy the extreme Of folly 10 suppose that III,
fact OF his failure could be suppressed and Of wick
I
be successful by the obliterstion Of the books O
the treasury. Such folly and wickedne-s no wis.
| or good man will ever b. persuaded Ia mpute 3,
the deceased or to the survivor
VI. We annex a copy Of the contrac
made between the Navy Department anc
Mr. DENBY, as furnished by the Union
Contract.
Thu agreement, by the Navy Department, il
behalf Of the United States, and by direction Of ,h
President thereof, the one side, and by Nathsnic
! DENLY, ar, Of the city Of Richmond, merchant
who IL about 10 establish house at Marseilles il
France, on the other side, witnesseth, that th,
said Department hereby constitutes the said Ma
| thaniel DENLY temporary agent for furnishing
such money 10 the American squadron lin th'
Mediterranean sea, from time TO time, the said
Department may wish to be furnished by him, anc
agrees 10 pay him for all moneys furnished I.
The rate II four and three fourths dollars Cor ever
hundred dollars delivered by him on board Of am
vessel Of the said squadron 10 the purser thereof
the port Of Narcotics, in France duplicate receipt
Of the purscr of said vessel TO be given therefor
and agrees further Ia give him, the said Nathanie
DENLY, agent aforesaid, notice at Msrseilles be
/ tween sixty and ninety days previous TO the re-
quired delivery Of the said money, Of the probable
amount wanted, and the time when wanted, not u
exceed semi annually, unless on notice of at lcas
thirty days, one hundred thousand dollars, and D