Lynchburg daily Virginian. [volume] (Lynchburg [Va.]) 1852-1861, 1860-06-18
The Great Defaloation.

The Great Defaloationt
We adyerted the other day TO the great Fowler
defalca.ion stating upon the authority OF the
Postmaster General who speak. like . frank, ho-
pe,, man as ne believe he s--that the fact of this
almost unprecedented swindle Of the government,
had been known to one branch 1t the Depart
m emit that appointed by law to take eognizanee
of ,ueh ma,ters--for years. And yet no expose
wa. made Of one who stood high in the estima-
ton Of the President and the party; who spent
his own. and as the sequel proves the government
money freely to subscrve the interests oil the par
ty,-until the defalcation had assumed the stu
pepdious proportions it now exhibits.
From the special report Of the Postmaster Gen
cral TO Congress, We make the following ex-
tracts:-
Tie def.cation, Up to March 81. 1860, amount
el to l55.554.3l. The late cashier oil Fowler,
however. alleges the actual deficit to be about
81 400 This may be true, inasmueh rs the nc
,anls ~ the anrreat quarter Ind not been audi
ted ana the amount distracted from its revenues
has h,t. u Consequence, been yet ascertained
Jude NJ from The deposites made it does not OF.
coed thu sum stated by the cashier. The bond OF
the uretics Win eptirel, responsible Is in the
penalty of but 1000 Unless the balance can
be made out of d,e estate ot the deiaulting post
master il will prove a toIal loss to the Govern
ment. 1t will be seen from the marshaPs return
that no has made a levy, hut, IA the property 10
understood to DO heavily enc1mbered, it is nltoee
Their doubtful whether the levy will prove at all
productive.
One hundred and seventy thousand dollars do
falcation. with security only in the sum Of seven
tyfve thousand dsllarsl We have also seen it
stated that the present suretes have notified the
Department that they will test the question Of re-
sponsibility. nasmnoh as the books Of the Depart
ment show that the defalcation existed prior to
the period when they became sureties. We can
not determine what will be the deoisioa Of the
Courts upon this question, but taking the most ia
vorable view a. presented by the Postmaster Gen
eral, and assuming that the sureties are he'd and
ment viii still lose $95, 600.
Tie history Of this remarkable ombezz,cment,
which commenced in 1855, and IN 1865 amounted
to SUN greater than that for which the sureties
were bound, is thus given by the head Of the De
partment:
1t will he observed from tho Auditors report
that the balance due from Mr.. Fowler on Decem.
Der 81, 1855, was SS,9s5.10. The cmbezglemept
may be regarded as having had its origin ut this
date. This deficit was increased by Sl1 .631 %
the following quarter and with the exception of
three quarters--tbe last of 1856 and the first two
OF lS51-the increase was continued until the
final exposure. On the Both Of june 1857, II had
reached thesum OF 500, 020S8. This was adjust
ed by special deposit Vi Sc, 00O on the Sth of
August 1857, which. with the credits for clerk
hire, &C., which were allowed, balanced the nc
count, and len Sl,999l9 to Mr. Fower's credit.
The settlement, however. was deceptive, inaemuch
as in consequence OF this special deposit having
been made. the weekly one Of the current revc-
nues due August 4. 1857, was omitted, y, that in
fact a deficit equal to nearly weeks receipts
still remained The dciarati, u now made rnpid
progress. $40. 495 having been added To the de-
fciency the following quarter. On the 30th
OF September, 1858, the deficit was S75, 90.
la November Of that year the books were again
balanced. but this adjustment, like that in August
le5,, was altogether dclusive. 1t was accom-.
pished by applying the deposits of the revenues
already received OF the quarter ending December
81, 1858. to extinguish the prcexisting liability
There was not dollar paid, but simply q transfer
Of the Indebtedness from pnc quarter to another
When I took charge of the Department in March,
1859, the deficit did not probably fall short of
$4,000. On the 31st Of that m nth it amounted
to 1913, 93S9S. 1t continued to augment until, al
the close Of the first quarter uf the present year.
it had reached q magnitude which would probably
have rendered its concealment impracticablc for
more than few months longer. Had the settle
ment, however, not have been insisted on early in
May, but have been postponed until tho end OF the
quarter them BY perverting it's entire revenues to
meet tn. liabilities due the 3lst Of March, 1850,
the books might. under this device. have been
again balanced, and the denouement of this dra-
ma of SHANGHAI guilt been delayed for three
months more. But the imperative demand for q
settlement Of the accounts before tho revenues Of
the Qnarter to be despoiled had half accrued bal
fsd he stratagem which had been SO long sue
cessfal, ead exposure became inevitable.
The following statement of the Postmaster &c
neral, and citation Of the law, sufficiently demon
strate collision or criminal neglect (the latter VIZ
are disposed to believe upon tho part Of a high
functionary whose duty it was to protect the int
rests of the goEernmont. but who, failing utterl,
TO do 90, 10 still retained in ofhcel
"Tbe true explanation" says tho Postmaster
General. however, Of tho ignorance Of the De
partment of the existence and progress Of Thu
fraud must be sought for in the failure of tn,
Sixth Auditor to report the constantly recurrin,
definquencies of Mr.. Fowler to the Postmaster
General The relations Of that Office TO this De
partment is somewhat anomalous. To his hand
are entrusted the administration Of its highest in
teress., and yet be belongs to another department
Of ths Government and is absolutely under th
control Of the Secretary of the Treasury. Tn
lay creating his Office and defining its duties is o
Distinct In is requirements 80 far as the preston
70 be discussed is concerned, that a citation of
few Of its provisions will relieve me from tho ne
eessity of any very detailed examination Of IN
points which the Auditor has urged in his d,
fencs."
The statats referred to--that of July End, ls3
---deplares.
The Treasurer shall render his accounts Of Il
moneys rcaeiysd and paid by him eon account
the RwsOAcs Department quarterly to the Aud