The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1860-12-25
The News.

The principal subject Of discussion yesterday
in monetary and political circles was the recently
discovered frauds on the Indian Trust Fund at
Washington. The additional revelations respect
ing the affair show that the first reports to the
amount distracted were correct. II Is thought,
however. that the government j. protected from
loss Bailey, the clerk oi the Interior Department
who distracted the bonds, was yesterday released
on three thousand dollars bail and IL was alleged
~ reason for the small amount Of security that he
has turned States evidence Mr.. Vim. III. Russell
Che President Of the Overland Pony Express Com
pany. and of the firm Of Russell, Majors & Wad
dell. Of 81. Louis. the army transportation con-
tractors. was yesterday arrested In this city
charged with completely in the Indian Trust Bonds
fraud. Our dispatches from Washington detail
she particulars Of the entire transaction. The sub
.cci i 10 be thoroughly Investigated by special
committee Of Congress.
There are reports from Washington Of a defalca-
zion IN the Treasury Department to q large amount
Whether the reports will be verified remains to be
seen.
There was great excitement In Pittsburg. Pa,
yesterday. owing TO a report that negotiations
were On foot Tor the tran.fer az cannon from the
Allegheny arselal to Newport near Galveston
and Belize, Mississippi.
Al the meeting Of the Senate Crisis Committee
yesterday Mr.. Seward presented two PROPOSE.
uons-ono that the present constitution should
never hereafter be amended 30 as TO allow Con-
gress to interfere with the local institutions Of the
States the other allowing trial by jury 20 fugitive
slaves. The first proposition was adopted, bu, the
batter was rejected Mr.. Toombs programme was
also rejected. The committee viii meet again on
"wednesday. when IL l. expected that they will
conclude their sit,ings.
The proceedings Of Congress yesterday were In.
serestiug. In the Senate, Mr.. Pugh OF Ohio Of
fered joint resolution in favor Of holding Con.
ycnion to amend the constitution. II was referred
90 the Select Committee Of Thirteen. Mr.. Wilson
introduced bill providing for the more cifectual
suppression a. tie slave trade. The bin for the
admission Of Kansas was taken mp, and Mr.. Mich.
olson of Tennessee. made speech on the pcrilous
condition Of the country. He argued that any re.
sort TO force by the government against South
Carolina was equivalent 10 y declaration Of
war against that State. He was followed
by MIR. Doolttle, who was OF opinion
that " Kansas was admitted into the
Union Il would do more TO bring peace 10 the
country than anything else The bin was finally
made the special order Cor Monday. Mr.. Davis
offered q resolution, which ne had already pro.
posed in the Special Cenmi,tce o. Thirteen. with
che view q having II printed. II provides thar
amendments be made 10 the constitution declaring
that property in slaves be recognized a. much and
etand on the same footing In all federal and con.
stituional relations A. any other species Of pro.
per,y; that such property shall no,-he subject TO
be impaired by any local law IN any State. sni
Cha, in no case shall such property he impaired In
any State or Territory. II was ordered 20 be
printed. The Senate adjourned till Thursday.
In the House yesterday q letter signed by Mcssrs.
Mcqueen, Bonham. Doyce and Ashmore, members
from South Carolina, was read. In which they say
,hty avail themselves u the earliest opportunity
since The Official intelligence Of making known
that the people Of South Carolina, In their sove.
seign cal aciiy, have resumed the powers which
thty heretofore delegated 10 the general govern.
,acnt and thus dissolved their THE sisners) con.
.aec,icn with the House of Representatives. The
Spea ktr has directed tia, the names of the above
mentioned gentlemen be retained on the roll. thus
net recognizing their act o. secession from the
House. The Secretary OF the Interior zen, In
q Communication respecting the defslcation
On his department, asking that Q committee
be appointed 70 investigate the AFFAIR. commit.
tee Of Ave was accordingly appointed, with fuu
power TO send for persons and papers. The Diplo-
Us'ic and Consular Appropriation bill was passed,
and the Army Appropriation bill was reported and
referred. Mr.. Ccchrane. OF New York. introduced
resolutions revivine the Missouri Compromise line
end declaring that any attempt 10 coercc . State