The Kalida venture. [volume] (Kalida, Ohio) 1841-1865, 1853-05-13
From the Cincinnati Enquirer. :
VIOLATION OF THE SUB.TREAS.
UEY Law BY MR.. CORWlN.

some grave CndrQeS nave recently
been made in the public pVints against
Thomas Corwin Of an official violation Of
lhe Sub>Treasnry law, wliilo he was the
chief financial officer Of the Government,
and therefore bound TO see that lis pro-
visions were respected. II is said that
he has, in direct violation Of iha: statute,
and for purposes which the law was ex-
pressly enacted 10 prevent, been loaning
lhe public money, on interest, 10 stock
spectators, taking southern and western
railroad stocks at their face, as security,
in sums exceeding half million Of doll
lars at a lime! II has been urged in ex-
that Of the $6,500,o00, Of five
per cent. stock, which falls due in 1853,
The Department has been making pur-
chases as far as il could obtain the stock,
and paying for il out ofihe accumulated
balances, and in order TO do this without
exciting the market by coming openly TO.
il, the Department has advanced or
loaned money TO a leading broker, who
purchased in his own name; that for this
purpose the specie was Withdrawn from
lhe Government vaults and placed in
bank 10 lhe credit Of an individual, where
il remained for length OF time, TO the
exten. Of $500,000, without interest, and
was finally returned TO the Treasury
vault on the approaching chgnge of Ad.
mnistration, on the plea That the stock
could not be obtained. The Economist,
a statistical and financial Journal pub
Ished in New Yo,k, Of high character,
says that the facts in the case ale as fol.
lows:
By an arrangement. between Thomas
Corwin, Secretary ofthe Treasury, and
Simeon Draper, E.q, broker, of Wall
street, the latter deposited 2t Washing
ton a quantity Of stocks, mostly southern
and western railroad securities, and on
these stocks the Secretary drew warrants
on the sub-lreasury here to the extent Of
$5OO,00o, in favor Of Mr.. Draper On
the change Of Administration, Mr.. Dra-
per paid back one>hllf the amount, and
reluihs the other ill the time for which
he borrowed expires-probably next
July. Ii is stated that he obtained the
face of his securities from the treasury,
and ihatahe pays five per cent. interest.
In addition 10 this transaction, il is stated
that John ]. Palmer, ESQ, obtained a
similar amount in two warrants, one oi
100000 from the New York sub>neas.
ury, and one Of 100000 from The Bos-
ton sub treasury; that, on the requent Of
the Department, after the change in Gov.
eminent, he returned these Sums. 4
will be observed that money both here
and at Boston was paid out by The officers
on regular warrants drawn in favor Of the
payee, and they had no knowledge Of The
nature Of the draft. The whole matter
seems, 10 rest entirely with Thomas Cor
win, Esq. If Mr.. Draper pays fve pei
cent, say 25,J00 per annum interest
who got tho moner' The 10Th section
Of the suS-tleasury provides as follows
''lf any one Of The said officers, or o
those connected with tho Pos'oflice De-
parlmeni, shall convert to Lis own use
in any way whatever, or shall use by
way Of Investment, in any kind of proper
ty or merchandise, or shall loan With ol
without interest, or shall deposit in an,
bank, or shall exchange for other funds
except as allowed by this act, any por~
lion of the public moneys entrusted tt
him for safe keeping, disbursement, trans
Ter, or for any other purpose, every sucl
act shall be deemed and adjudged 10 b.
an embezz.ement of SO much of the SAT-
moneys as shall be thns taken, converted
invested, used, loaned, dep' SIZED or ex
changed, which is hereby declared to b.
a felony"
The act specifies exactly how dis
bursemens of lbe public money shall b
made, and the Secretary Of the Treasur
has no more right to vary the mode Q
payment than the lowe ST clerk Of the De
parimen,. The Secretary has right t
transfer the public money only as lh
law directs, VIZ: "Sec. 20. TO transfe
moneys in The hands Of any one deposit
ory constituted by this act 10 any olhe
depository constituted by the same"
For the. purpose of making payments
] the Treasurer "may draw upon any on
Of the repositories, as he may think mo-
J conducive to the public interest, or
) the convenience of the public creditor
or both" But "no exchange Of func
} shall be made by any discussing office
! or agents of the Government, Of an
/ grade or denomination whatsoever, {
) connected with any brauch Of the publ
, service"
Now i, is avelrcd shat Mr.. Thomi
) Corwin did exchange drafts upon III
) New York Sub>Treasury, with Mr.. ORA
: per, for fancy railroad securities at the
/, face. If this is SO, he clearly stan'
. within the penalty Of the law, which il
: Acts five years. Imprisonment for its il
: fraction. The recipients or borrowers
r tie money are no, made liable. II N
Draper made good bargain, he was II
s bound 10 give legal advice TO The couI
i sci in the Gardiner case in respect
n money transactions. The whole Of Il
Hl - ! a :. . !