The Placer herald., 1857-06-06
Defalcations at the San Francisco Mint.


The San Francisco Bulletin, of June I'd
gives the following statement in regard to a
rumored defalcation in the Mint at that
place.
For some months past, various floating
rumors have reached us, as to some mis-
management in the affairs of the U. S.
Branch Mint in this city: but as they new
er assumed any tangible shape, and could be
Trained from mentioning the matter. For
the last few days, however, rumor has been
rife in assigning defalcation to various par
ties, and yesterday it was openly charged
on COL Haraszthy, the melter and refner
of the establishment. AS the vague reports
circulated in the morning papers, (Which
variously estimate the loss from one to four
hundred thousand dollars,) may produce
an unnecessary panic throughout the mining
country, we will lay before the public what
information we have been able to gether on
the subject, from conversations had with the
principal officers of the mint.
We have not the space at this time to
give minute detail Of the workings OF the
establishment. 1t will be sufficient, however
to state that the checks placed upon the
various departments are such that discrep
ancy in the accounts of any of the officers
could be readily almost instantly detected
with the exception of the melting and refn-
ing department. In this branch it is impos-
sble to have final settlement oftener than
once year, without great expense, and re-
tardng the business of the establishment.
This happens because large amount of
fine gold escapes into the chimneys and hues
which have to be torn down for the purpose
Of collecting the waste The officials of the
Mint have been aware, for long time, that
there would be deficiency in the refner's
department, on account of the bad construc-
ton Of the fues and chimneys. Various al
terations and improvements have been made
at different times, to prevent this waste
No correct estimate, however, Of the dehcien-
cy could be come at until last fall, when the
mint was closed for this purpose and in Or
der to make the annual settlements. The
deficiency was then found to be greater than
had been anticipated. This was in meas
ure accounted for in the following way: four
years accumulation of base metal, which had
been separated from the fine gold, had been
estimared-the great press of business hav-
ing rendered an earlier separation impossible
as the Mint had been worked night and day
by orders from Washington to meet the pub
lie demand.
Immediately upon the resignation of COL
Haraszthy, when a final settlement would
have been made, this refining of the base
metal Was commenced. No final settle
ment Of the account Of the mint has vet
been made, and it will be impossible to say
what is the actual deficit. At the time
when Col Haraszthy demanded an examina-
! ton by the Government agent in this city
the deficiency was considered to be fourteen
thousand ounces 1t has already been re-
duced to five thousand ounces. As the ex-
animation progresses it may be still further
reduced. At the closing of the Mint last
fall wien the wastage was found to be very
great, a zig gag chimney was erected by Col.
Haraszthy, and in the course Of two and
half months work, the amount of eleven
hundred and eighth ounces was collected
from it. To show how great must have
been the loss during the last four years, we
have been told that in the sweepings from
the roof Of Davidson's building, three hun
dred ounces of gold was collected At
Armory Hall, which is at least two hundred
yards distant from the Mint, one hundred
and eighty dollars was collected. Other
neighboring buildings supplied like pro-
portion of loss. Major Snyder, the Treas
urer Of the Mint, than whom we believe
there is not a moro honorable man in tie
State, and who is extremely cautious in any
statement he may make, informs us that to
satisfy himself, he went on frame building
near by, and personally collected consid-
erable amount The employees and officers
of the Mint with whom VS. have conversed,
look upon the deficiency, whatever it may
prove to be- as caused by natural means, for
which no officer of the establishment could
be responsible.
| The present refner is aware, that, even
now, with all the precaution that can be ta-
ken, the loss is immense. This matter of
wastage has been the subject of frequent COM
munication to the Department at Washing
ton and means have been asked to enlarge
the chimneys and improve other departments
Of the Mint, but without success.
Col. Haraszthy is confident Of being able
to clear himself of all blame and is making
over all his property to the government to
be held by it in trust until the matter is cler-
ed up.
The alleged defalcation is most unfortu-
nate; and whether proven or not, will tend to
the injury of that establishment in the es-
timation Of the miners who have been doing
business with it, to an extent that will re-
quire long while to remedy. Many Miners
send their dust to the mint and have it coin
ed and we have heared frequent complaints
of the reported assays which we supposed
caused by disappointment at finding their