The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-12-25
LATEST NEWS.
TELEGRAMS
The Abs ractcss Fsonds fror,, the interior De-
unI.fili

The Abs ractc,s F;cnGs fror,, the Interior De-
partment.
WASHINGTON, Dec N.-it 3ppears from the fac :
in connection with the late abstraction of the bonds
of the Indian Trust Fund.- that about five months
ago, VIM. II. RUSSELL of the firm of Major Russell
d addeI held about one million dollars worth of
the Official acceptances of the Secretary of W ar
These acceptances had been given conditionally in
accordance with the usual course of business for
the transportation of the supplies of the army
under contract with the Government. Mr. Russell
finding himself unable to negotiate these accent
ances, being greatly embarrassed pecuniarilv and
ascertaining from Goddard Bailey, with whom he
was intimately acquainted, that the latter had con-
troll of over $4,000, 900 of the Indian Trust Fund
invested in the bonds of the different States ar
ranged with him to let him have about 81 500 600
worth Of these bonds, to be hypothecated in New
York, and as security for which, he gave him the
acceptances of the War Department, which he
placed in the safe, where the bonds were kept.
Recently these bonds have greatly deprecated
and the bankers in New York, who made the ad-
vances on them therefore called for additional Sc
cuTity, when Bailey, in order to save the bonds de-
liyeTed up over 100000 worth of them-addi.
tional in all about IS 70,0G0. On the 18th inst he
addressed letter to the Secretary of the Interior
frankly lmparting these facts and requesting an
investigation. This letter he gave to Senator tn
be delivered to the Secretary of the Interior, on
his return from North Carolina, which request was
complied with The Investigation proved the
truth of these statements. Messrs. Suter, Lea &
Co, compose the banking firm tbr Uugn which the
negotiation was transacted. Nothing either in the
papers or in the investigation shows that any par
ties excepting those Immediately concerned in
this business, above related, are in
the slightest manner concerned in the
transactons 1t may be stated that the acceptances
OF the Secretary of the War Department have
been given from time to tine in compliance with
contract with Messrs. Russell, Majors K Co., and
until recently, that firm have had no difficulty in
negotiating them,
To-day Mr.. Bailey was arrested at the instance
OF the Government, and required to give bail in the
sum OF $4,000 tor his sappearance at the next term
OF the Criminal Court.
despatch received here to-day from two dotec-
tiyes sent to New York yesterday, state that Rus
sell has been arrested and will be brought here to
morrow. 1t is thought that the Government is pro-
tected, as the acceptances more than covers the
amount of the bonds distracted.
The Special Committee of the House, to which
the investigation of the subject is referred consists
of Messrs. Morris, of Illinois, Conkng, of New
ork Bocock, of Va, Harris, of Md, and Case, of
Indiana.
The Speaker of the House has directed the names
OF the South Carolina members to be retained on
the roll, thus not recognizing the conduct of their
State, as severing their connexion with the House.
as they themselves maintain