The daily union. [volume] (Washington [D.C.]) 1845-1857, 1849-08-31

vi Ndsl u mls 5uuJcSI We ho'c VA
posed the injustice of the insnuatons which have been
directed against him.
We now give an intelligent correspondent the opporu
nifty OF discussing the other branch of the subject which
relates to the defalcation OF Mr. DENLY himself. We
need not say to any who reads it, that this commun
cation comes from one who thoroughly understands the
subject and who justly appreciates the conduct OF Mr.
Denby
For the Union
DefaIcaton-Tho Case OF MIR. DENLY.
Sensible at last of the disastrous effects of system
OF deliberate and heartless prescription OF faithful minis
teral officers, the desperate who direct unfortunately
for the country its affairs for the moment have endeav
ored draw off public condemnation from their fahless
conduct by attempting sustain themselves through the
imputaon of want OF fidelity in the prescribed officers
whom they have removed. Among those upon whom
they have attempted to fix the charge of robbery and
dealcation, is Nathaniel DENLY. He is vginan; his
State has been uniformly and consistently democratic
administration; in that administration beloved and dis
iDguished vrginian presided over the department to
which Mr. DENLY was attached and the importance OF
proving him robber and defauer is, by these concur
ring circumstances greatly increased Add to these con-
sderaons the further that Judge Mason, the late
Secretary of the Navy did, without his agency suPpan
the and director OF public press in the city OF
Richmond who sought the presidency OF the James River
& Kanawha Company, with its emoluments, honors, and
patronage and the people OF the country can soon under
ing given to the transactions OF Mr. DENLY with the
government That there is ascerained indebtedness
by this gentleman to the government, none has denied
that this Indebtedness is considerable, all admit; but that
it Indebtedness amounting to defacahon IN iis prop
ery odious understanding is yet to be established Let
the following brief statement be considered and the Just
and fair OF all parties pass it. The facts stated
Years since, and long before Mr. Polk came into Office.
the government found important to institute CONNER
cia agency at Marsees, for the main purpose oil there
providing the means OF meeting the wants OF our
fleet q the OaI seamen had 70 Dc paa
with supplies and the means for refng 10 elect THIS
money had to be placed TO the cruising ground OF the
ships, in the hands OF some faithful and responsible
agent Vain attempts had been made accomplish this
OBJECT and losses had been sustained by the gov
eminent. AS substitute for the previous sysemit was
finally determined Cat what time is not exactly known bat
most certainly many years before Mr. Polk became Pes
denD to establish commercial agency at Marsees, and to
require of the agent bond and security IN sum equal TO
probable amount he might have in his hands MessIs
Fitch Co. continued Tor some years to transact the
business OF this agency. In 1874 the then administration
at the head OF which was Mr. Tyler-detemi1ed TO ap-
point new agent. Mr. DENLY selected, and his
nomination submitted to the Senate, and approved by
that body Mr. DENLY was required TO give bond, with
security to be approved BY either ,ae attorney o1 lne
led States for the district OF Virginia This bond
given, and approved BY the Judge Its penalty was
bond, and as part Of the whole, arrangement! or
contract, by which Mr. DENLY agreed 10 pay from time
to time the demands of the government required, at
Marsees, all necessary sums for meeting the wants OF
our squadron in the Mediterranean These payments
TO be made in Spanish pillar dollars, or IN SOW
ereigns or francs Mr.. DENLY was to be allowed four
and three quarters per cent. all such payments. 10
him the government to advance in sums OF nifty
thousands, he might make acquisitions Tor the same
least months before the payments were to be made
at MarseiIles, and be was entitled TO ninety days pre-
vious notice of the which might be required to be
paid TO the government or the pursers OF the ships at
Marsees 1t is further agreed that the advances to be
made to Mr. DENLY to be paid to him, or his properly
constituted agent the city OF New York, in American
silver COIN that Mr. DENLY is TO be liable for all charges
of freight and insurance, and other charges incident to
the remission OF the funds to Marsee and that he was
further to be subject to all the hazards attending their
transmission. Such is substantial outline OF this ar
rangemen or, to speak more technically, contract be-
| tween the government and Mr.. DENLY. At the time it
was entered into and executed the breasury law had
1 not been enacted.
| whom advance had been made under it, left this
country, having previously appointed Mr.. Charles r Os-
borne, of the city OF Richmond his agent with authority
him to receive the advances stipulated to be made by
| the government private agreement was made be-
tween Mr. DENLY and Mr. Osborne, that for such time
the funds thus received by Mr.. Osborne for DENLY
might remain with Osborne he was TO allow DENLY in
erest OF this agreement is certain that the then Sec
rotary OF the Navy, and all Of the securities residing in
Virginia. had no knowledge until after the failure 81 Mr.
Osborne The spring Of 1s4S, and il is believed that
none OF them came TO this knowledge until The latter part
| OF the year ls4S.
mean being small, and indeed, part OF that time gov
eminent armed ship being in that sea- very nconsder
able amount was advanced to Mr.. DENLY. But in
/ lSlI, Wnen revolutionary ulstuIDeu tue
| whole OF the south and middle of Europe, and de.
handed that our commerce in the Mediterranean
should be cared for, the administration, In ancpa-
lion Of the approaching demands, increased in the lat
ter part OF the year 1877. the advances TO Mr. DENLY,
and made two heavy payments 10 Mr. Osborne his agent
the United States BY the terms OF the contract with
DENLY he TO be at all the costs and liable to all the
risks attending the transmission OF the funds from the
United States Maseles This being the case. il was
clearly his right and the duty OF his agent to adopt such
means for placing these funds in Marseiles TO the
wants OF the government TO them might the most
prudent and safe This right being established under the
contract II became mere matter OF discretion with eithei
OF these gentlemen in the selection OF the mode OF get
ting the money Marseiles No expected this "a
be done by The remittance OF American silver coin 10
Marsees. II this coin had been foolishly sent there
not the coin covenaned 10 be paid out; Tor thai
coin be Spanish pillar dollars, sovceigns,
then TO be converted into other and different coin
to be disbursed at Marselles. To make a remittance
then, in the American silver coin, could not have been
anticipated, and conld have expected this the
time. How else, then, this remittance to be made
might have been effected by the purchase OF bills But
LET il be remembered how disturbed and unsettled had be
come the moneyed affairs Of all Europe in the year ls47
and how the dark cloud then gathering broke with de
vastang force, and swept down the strongest houses Ia
the early part OF ls4s The best banking houses Of tn,
world were suspected. The Barngs and the Roths
chds distrusted, and vague from time Il
lime OF their inability 10 meet their engagement
, came to across the Atlantic. Ii was Just abou
this time that Mr.. Osborne, acting the agent To-
Mr. DENLY, and looking forward to the period when h
government would require its funds at Marseies made
arrangements to place them there. The remittance
the purchase oil bills being esteemed too hazardous il
the then of he mon of