New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-12-25

| stated to be nephew Of one of tse Secretaries
and one of the blue cockade gentlemen, who
gave notice to the President that Re would re-
sign on the 4th Of March, and refuse to serve
under Mr.. Lincoln
Various ranors are afoat in regard 80 on at
legged defalcation in the Treasury Department,
aud it il confidently asserted that the disunion
movement in official circles is stimulated by
desire to hide the fraud and peculations of the
Departments by breaking up the Government,
as burglars fire house that they have riaed.
JSP.
Special Dispatch TO The N. Y. Tribune.
WASHINGTON, Monday Dec. q, 1860.
The developments to-day, concerning the i'm
meuse robbery in the Interior Department, have
produced a profound impression, without exciting
any extraordinary surprise as oil the parties
known to be, or suspected Of being implicated,
have long been under suspicion here. GODDARD
Bailey. the clerk who distracted the bonds is
from Charleston. and is a son of former Attor-
ney-General Of South Carolina though his ap-
pointment is nominally charged to Alabama in the
Blue Book. He is q rank secesslonlst, aud one
of those who proclaimed his purpose not TO serve
under Mr. Lincoln. His relations toward the
Secretary of the Interior have been most conf
DENTAL Among his famili0rs he has been re-
gnrded as a man of reckless and diSspated habits.
II il now ascertained that the amount pur-
Joined is exactly $o7O,OOO; for, while there are
drafts on the War Department, made by Messs.
Russell, Majors Il Co., aud accepted by Secre-
tary Floyd, deposited for corresponding amount
and believed TO be utterly worthless, these drafts
were Ostensbly made on account OF the trans
portation contracts held by the above firm, but
for which no service is known to have been
really rendered. They were hitting operations
intended Ia raise money, and have been a6cat In
Will street and other marts for the last siA
months. One of them, from Western Pennsyl-
yana. which had been sold, was presented to
Secretary Floyd o few weeks ago, which he SAID
would be paid, If things went right An.
other, for 0,000, was presented by Mr. Alley
of Massachusetts, which had been discounted in
LINN. Mr.. benjamin called upon him several
months since to inquire about negotiation for
| some of them, concerning which he had been
consulted professionally. Secretary Floyd at first
treated them IA good, but sent him word next
| day disclaimng any responsibility.
There is reason 10 believe that several officials
connected with the War department. certain
| notorious hangers on there, and other outside
parties, have all been engaged in speculations,
and eolluded together to use the public funds for
their mercenary schemes. Some of them were
| involved in former transactions, and by hard
swearing and other appliances, escaped detection,
though they were more than suspected then.
Secretary Thompson sent communication TO
the House, asking an investigation. This is
proper enough. but he will find it difficult to
explain Why rs trustee Tor Indian funds ana
! legal custodian Of their money, S4OOO,OOO,
| passable liz, bank notes, were placed in the
keeping Of an irresponsible clerk, without secu-
| rity Of any kind. He ought to be held personally
snsweratle for whatever loss may DO sustained.
Mr.. Thompson iustifes his course in intrusting
the bonds 10 Bailey's care, by the fact that the
law makes no provision for their special cusledy'
| They might. however, have been placed in the
keeping Of commissioner Of Indian Affairs
Mr.. Bailey reason for confessing his abstrac-
| ton waa, that he expected Mr.. Thompson would
! retire from the Cabinet, and might not be able
to clear himself from completely when the discov-
| FRY came to be made, rs it eventually must be.
| 1t was to save him from suspicion when ne was
not guilty.
| All the coupon. Of the bonds we're cut on and
retained in the safe, so that the robbery might
| not have been detected, but for the circumstances
| stated. until the next Administration came into
| ofice.
This disclosure il only the brginning OF the
end. The public service, with the exception OF
one or two departments, il rotten ana mas been
! rrostituted TO yenal objects. Members Of the
Cabinet and Others have advocated secession, be-
cause they desired confusion and chaos to conceal
the depredations committed here during the past
four years, and which would be exposed to their
disgrace in ordinary times. The public must be
satisfied by this time, if there were no political
reasons, Why this Administration should be turn
ed out. There are others quite as urgent why
the Government should be placed in honest hands.
| To the Associated Pres,
| W,sHIsG1os, Monday, Dec. ~, 1901.
II presr. from the facts in connection with the late
abstraction Of the bonds OF the INDIAN irust una
hat about five mouths ago Mr.. r. Russell OF me hrm
| Of Majors, Russe 4 Wafdell, held a1on, m'loh OF
| uOllHf7 OF tut DNtihl WV
War. These scoepanoes had been gwen e4ndionaliy
in accordunce with the usual couue oil business ior
TRANSPORTATION of snpphes Of the Army under eourac'
with the Government. Mr.. Russell, not finding MA
self able TO negotiate these acceptances, and bhnl
greatly embarrassed pscniny, and ascerthlniuR IRON
GODDARD Bailey with whom he was ntimaei! aed uuii'
ed that lie latter bsd control Of over three millions 0
Indian Trust fnds invested in bcndS Of dee ut state.
arranged with lin to Jet him have about haf mil
lion az dollars these bonds To De hiPiheca'ed u
BAILEY the acceptance Of the War Der fumen, wbic
49,. ID ~ a.. uuh1rn the nnh. ,Yer. knnl