The Washington union. [volume] (City of Washington [D.C.]) 1857-1859, 1858-05-06


while have, at best but one. I have thus expressed
my views upon this question: which would have done
at an earlier hour il could have gotten the floor ~
PA
ALLOWANCES TO FOREIGN MINISTER'S
rs FOR DIFFERENCE OF EXCHANGE.
TREASURY DEpARTxEsT,
May 8, 1888.
SIN / have the honor, in compliance with your re-
quest of the 18th ut to enclose herewith the report of
the Comptroller showing the rules established by this de
partment for any allowance to diplomatic officers and
consuls on account Of losses by exchange
Very respectfully, your obedient servant,
s, b5,gsa 81 esn $50 HOWELL COBB,
Secretary of the Treasury.
Hon. JOHN sLrpELL, Committee Foreign Relations,
Senate United States.
s TREASURY DEPARTMENT
X 81 30 y Comptroller Office, April IL, 1858.
SIR: Ihavc the honor TO acknowledge the reference
to this Office of the letter addressed to you by the Hon
John Sidel from the Committee Foreign Relations
in the Senate, bearing date the 18th inst inquiring
"what rule prevails in the Treasury Department in ref
to allowances for losses exchanges in settling
the accounts OF foreign public unctonaries and
beg leave to submit the following reply
On the It'll day Of january, 1857, the Hon James
Guthrie then Secretary of the Treasury addressed cir
cular to the Fifth Auditor Of the Treasury, copy of
which is herewith marked A. requiring hat the salaries
of foreign officers, when paid at the treasury of the
United States, shall be paid all othcr officers whose
the United States and when paid received in the for
eign countries where they accredited located and
paid they shall be entitled to payment in gold silver
currency Of equal value to the goldconage paid at the
United States treasury. This circular brought to
your attention by report from this Office of date Of May
ID, 1857 and received your sanction in letter dated
May l6 1857, copy herewith marked b. in which you
say The instructions OF my predecessor referred to are
pedcated upon existing laws and must govern in cases
prior to their date, well subsequent. You will,
therefore, in deciding upon the adjustment Of the accounts
of foreign minister's consus and commercial agents OF
the United States recognise the gold silver currency in
which they paid of equal value to the gold coinage
paid ut the United States treasury The which
influenced Mr. Secretary Guthrie in issuing this circular
set forth at great length in his letter to the chairman
of the Committee Finance In the Senate the 2sth
day Of April 1855 ee Report the Finances for the
fiscal year 1866, pages 664-'5.)
To enable the accounting officers to carry out the
quirements Of this circular, procured from Col Snow
den, director of the mint at Philadelphia, table Of the
value of foreign coins as compared with gold dollar
which, having been submitted to- and approved by you,
has been used in estimating the relative value to our
gold coinage of the foreign currency in which the pro
ceeds of drafts shown to have been received copy
Of this table Is herewith marked c.
This office has not questioned for years past the obi
cation OF the government to it, foreign officers and
agents at the place TO which they are accredited and
where by the nature of their duties they required to
reside, when demanded by the said officer agent
The consular regulations prescribed by the President of
the United States provide in the 205h paragraph that
loss ny exchange IN the sale OF draIts on the ScceJry
of State will be allowed the same being duly estab
shed, practice however, had obtained to some ex
tent charging the government with loss, merely because
there certain differences in exchange existing be-
tween the two countries, although actual loss had
cver in fact been sustained The questions Of the liza
bty OF the government and the duty of the accounting
officers in this particular laid before you bythis Of
flee in report the 18th August, l857copy herewith
marked ID Ito which, full examination of the sub
ect you replied that the regulations OF the consular
officers of tho United States predicted they are upon
the law regulating the diplomatic and consular SYSTEMS
indicate very clearly that only the actual loss by
change the sale Of drafts the Secretary of State will
be allowed copy Of which reply decision is also
herewith marked Il. t
1t will be seem therefore, that there have been rules
regulations established by which the accounting Off
of the treasury governed in their decisions upon
claims for alleged losses by exchange preferred by
foreign public officers The first is that the salaries Of all
such officers when paid at the treasury of the United
States shall be paid all other officers the standard
gold coinage of the United States and when paid
ceyed in the foreign countries where they accredited
located and paid which optional with themselves they
shall be entitled to payment in gold silver currency
Of equal value to the gold coinage paid at the United
States treasury The second rule regulation H. that all
losses necessarily sustained in the negotiation Of drafts
otherwise, will be allowed and made up to the officer
upon the being made known and established in tho
and form that other facts usually required
be established. Ell
Claims for constructive losses founded on no other
facts than that differences in exchange certified ex-
list between the foreign residence Of the officer and the
United States without any allegation the part Of said
officer that drafts had lever been sold by him. any actual
loss sustained not allowed under this rule Tho pinoi
pies desired to be carried out by the adoption Of these
rules WERE that all our officers and public agents should be
placed equal footn and that those who required
reside abroad entitled receive their salaries at their
foreign residences at the treasury of tho United States
they may severally elect without loss abatement
If paid to them at the treasury their claims satisfied
by the payment Of the exact amount in the gold coinage
of the United States II paid to them abroad they are
entitled TO- and receive under the above rules the full
amount given to them by law in currency Of equal
value with the gold coinage of the United States without
dimnution necessary loss from any cause whatsoever
This latter rule IL in strict accordance with the opinion
of Attorney General Mason, dated July TO- 1846 upon
the question of allowing losses by exchange incurred by
foreign ministers their drafts Ihs believe
the first time that the opinion of the law officers of the
government directly invoked upon the subject and
claims or charges against the United States actual .ss In
CURED in the bonaridc negotiation Of bills ~
With reference to tho particular claim of Mr. Hyatt for
loss by exchange which has been suspended by the &C
counting officers may be permitted to state that it is
based on draft drawn upon the United States by James
T. Wilson, acting vice-consul at Annoy for one quar-
ters salary alleged bc due him vics during
the absence Of Mr.. Hyatt, dated at Annoy and made
payable to the order Of Mr. Hyatt then 1t Rochester,
in the Statt Of New York, and which draft includes an
alleged loss by exchange Of forty per cent the said
quarters salary ~
Mr. Hyatt, in IN explanatory letter to the Fifth Aud
tor states that by written contract bctwecn himself
aud Mr. Wilson, an extract from which given in his
letter. Mr.. Wilson to discharge the duties of the
consulate during his Ntr Hyatts ab~~nce for fixed