The daily union. [volume] (Washington [D.C.]) 1845-1857, 1853-04-19
From the New York Economist.
The Sub-Treasury,

II has been openly charged in the public prints upon
The officers OF the government that they have violated
the ndependenl.rsasury law by illegal transfers OF the
pnblio money out OF their control. This very grave
charge, amounting under the law TO felony II has be
stated 10 explanation that OF the So 500 600 Of Ave per
cent stock which fall due in Inly 1885, the depart
ment has been making purchases lar il could OBJ
tain The Stock and paying for u OF The umalai ted
balances that IN order 10 do this without exciting the
market BY coming openly into H. the department has ad
vanced or loaned money TO leading broker who pur-
chased his that for this purpose the specie
Withdrawn IRON the government vaults and placed in
bank, TO the credit OF an individual where 1t remained
Tor length OF time, 10 the extent OF S50o00o, without
interest, and was hnsy returned 10 The treasury vs~li
on The approaching change. OF administration, the
plea that The stock could not be obtained The fact.
IN the case seem 10 be this. BY an arrangement be.
tween Thomas Corwin, Secretary OF the Treasury, and
Simeon Draper esq, broker, of Vail street, the latter de-
pssied al Washington aqosniiy OF stocks, mostly south
ern and western railroad securities, and these stocks
the Secretary drew warrants on the subeasury here to
the extent OF $500 oo0 in favor Of MIR Draper On the
change OF administration, Mr.. Draper paid back half
the amount and retains the other un the time for which
he borrowed expires, probably next July is stated
that be obtained The face Of his securities from the
ury, and that he pays per cent interest In addition
TO tbs transaction, u Is stated that John Pamer esq
obtained similar amount 10 two warrants, one OF
$500 900 from the New York subreasury, and Of
s2J0 900 from the Boston subeasury that on the re-
quest OF the department. after the change in government
he returned these sums 1t will be observed that money
both here and al Boston was paid out by the officers,
regular warrants drawn in favor OF the payee, and
they ad no knowledge OF the nature OF The draft The
whole matter seems TO rest entirely with Thomas Cot
win, esq II Mr. Draper pays per cent, say $4,000,
per annun interest, who got the money! The 10Th
ton OF the sub-treasury provides as follows:
II any OF the said officers, Of those connected
with the Pos, Ofce Department, shall convert TO his
in any way whatever or shall by way OF invest
ment n any kind OF property or merchandise, or shall
loan with without interest shall deposit in any bank
shall exchange for other funds except allowed by
this act any portion OF the public moneys Inirusted to
him for safe keeping disbursement transfer or for any
other purpose every such act shall be deemed and adj
judged TO be enlightenment OF so much OF the said
moneys shall be thus taken, converted. invested,
used loaned deposited, or exchanged which is hereby
declared TO be felony"
The act specifies exactly how disbursement OF the
public money shall be made, and the Secretary OF the
Treasury has right 10 vary the mode Of payment
than the lowest clerk in The department The Secretary
has right to transfer the public money only the law
dreets-vz "Sec. 2o-To transfer moneys IN the hands
OF any one depository constituted by this any other
deposIory constituted by the same"
For the purpose oil making payments, the treasurer
may draw upon any OF the repositories, he may
think most conducive to the public interest," or the con
venience OF the public creditors both But mo ex-
change OF funds shall be made by any dsbusipg officer
or agents OF the government, OF any grade denomna.
public service"
Now, IL is avsued that Mr. Thomas Corwn did e1-
change drafts upon the New York sub.treasury with
Mt Dfape Tor fancy railroad securities al their lace.
this IL so, he clearly stands within the penalty Of the
law, which nhcls five years imprisonment for its lnrae-
ton The recipients or borrowers OF the money are MOI
msut HaUie. III W.T. Draper made good "e
not bound 10 give legal advice the counsel ~ The Gar
diner case IN respect TO money transactions lbe whole
OF The matter has not yet uanspired
All the assistant treasurers are to give bonds, and IL
the duty OF the Secretary TO renew and extend these
bonds from time TO time, the accumulation OF nnds
may require Nov discharged hstn the lace OF All these
stringent provisions sums OF $500 600 and upwards,
gold have been absolutely taken out OF the government
vaults and placed in the vault. Of pet bank" and then
returned to the government vaults,
II is obvious that in tune Of pressure like that which
We have passed through "a pc, bank" would derive i'm
mense advantages from having large sums IN specie
placed lis eonol and moreover, that while the
FOR TO fesin that specie lasted the obstacles 10
plying to the purchase OF stock would be nsntmounta
bic The possibility Of sueh transactions as these IL