Daily Richmond times. [volume] (Richmond, Va.) 1849-1850, 1849-08-01
Mr.. Deaaby's Defalcation.

We have published the announcement of the
Washington Republic, that Nathaniel DENLY, who
was appointed by the late administration, temporary
Navy Agent in the Mediterranean has proved to be
a defaulter to the ;insount of $l555OS 49, Mr..
DENLY was formerly citizen of Richmond, and
the matter has natu rally excited much curiosity in
our community especially as there are peculiar cir
cumstances connected with it, which referred
to as follows by the Wing of yesterday:
CAS- we hear, lfr. Deuby appointed Navy Agent
and required to give security to the amount OF 100000
He was unable OF himself to give the bond MIR c. F.
Osborne Of this city undertook give the security be-
coming himself, condition that he to be Mr..
Denbys Agent in this counry-to draw all the money
himself and to have the use Of until called for by the
vents OF the public service But whether there such
an express condition not Mr. Osborne did act Mr..
that in his statement to the Department. he admits that he
did use about $l3l 900 of the public money which he is
W ss e mhe bsn M
borne comedies on his own account That excess, we
suppose Mr.. DENLY is accountable for.
Suit has been instituted by the Government the
bond and it is said that only OF the parties is
sponsible, and that he denies his signature
How far the Secretary OF the Navy Judge Mason is
cenaurabe, we cannot say 1t is certain, that Mr. Os-
borne could not have drawn the money without his know
ledge and consent We hear, in justification OF him, that
the bond required that Mr. DENLY should have agent in
this country to receive and transmit the money to him.
this be So and if the requistiou OF the bond in
cordance with the law, he would stand acquitted OF all
bame.uness he was aware that the arrangement be-
tween DENLY and Osborne contemplated speculation in
the public funds"
These statements will doubtless lead to a COM
plete exposition of the facts which, in justice to all
the parties concerned, shall, of course, consider
it our duty to place before our readers
AS we have heard the story, the Navy Agency to
which Mr. DENLY was appointed has no salary at
tapINad IN huf instead If sasru v,,;f
out interest, is placed in his hands annually He
gives security in bond OF 100000, to account for
all funds thus furnished him. and is allowed 10 Sc
cure remuneration for his services by employing the
money TO his own advantage, subject to a require
menr that the demands made upon him for govern
ment disbursements shall always be promptly met
1t appears that, in consideration OF Osbone's pro-
curing securities on Denbys bond, which were sat
isfactory to the Navy Department, DENLY agreed
thai Osborne should receive the money, and apply it
to his use, until it should be called for, whether
all, or what part OF it, we have moi learned Os-
borne, we understand, contends that this agreement
was mere business transaction and that if he fail
ed TO have the money forthcoming when it was call
ed TOR, it was only misfortune such as all men Ell
gagged in speculation liable TO. We do not know
how much money DENLY actually received, Or to
what extent, if any, he is defauter, and above
the amount due by Osborne
The fact, that the Navy Agent was regularly per-
united to the funds committed 10 his charge GER
tainly relieves the case of the aspect Of enabeaale
anem which is generally incident to official defalca-
tons; but it is impossible to Justify such concerted
arrangement as that which we described, to get pos
session of large portion of the public funds and
apply them to specializing operations, on theatre
separated by the wide Atlantic from the place of
their disbursement, Nor do we think that this COM
pounding of Executive favour on the one hand with
the ability to procure acceptable securities on the