The daily exchange. [volume] (Baltimore, Md.) 1858-1861, 1860-12-27

Here follows the Declaration of Independence
full synopsis of which, was received by telegraph,
and published in our issue of Saturday last
THE GREAT GOVERNMENT FRAUD.
FURTHER PARTICULARS.
Yesterday, Detective officer Allen returned to
THIS city from New York, accompanied by officer
Doudegan, one OF Marshal Rynders' aids as an as
slstant, and bringing in custody VIM. H. Russell
whose name is mentioned in connection with the
late defalcatiOn. Officer Allen left this CITY at
o'clock Saturday afternoon, with one of his part
ners (Olllcer Busher) whom he left in Baltimore
| on other business, and proceeded Immediately
through to New York. He had information that
aperson was dispatched on the same train to no
tity Russell of his coming, soon as he arrived in
| New ork, but managed to head off the messen-
| ger. Allen went directly to Marshal Rynders for
assistance. Marshal Il. did not know Russell or
where he stopped, but from the first assisted Allen
to the best OF his ability. Allen went to the post
! office with Rynders, and there ascertained where
the Pony Express office is located Allen then went
TO the express office, leaving Rynders (who would
be recogniZed) on the opposite corner and nouir-
ing or Mr.. Russell, said he had a package to de-
liver to him in person.
The clerk replied that Mr. R. was not in, but was
boarding at the Everett House. Allen went there
and ascertaned that he had taken breakfast two
hours earlier than usual that morning CMonday)
Returning to the Marshas Office Allen got the as
slsance OF one of the Marshals aids, and returned
to the Pony Express Office where he found Russell
arrested him. carried him to the office of Marshal
Rynders, and delivered him into his custody. Rus
sell was then taken before Judge Belts, who re-
manded INN to the custody of Allen, to be taken to
W Washington for trial. When arrested Russell ap-
peared to be mOmentarily excited, but it soon van
ished, and he told officer Allen that he knew he was
IN New York after him. and had been informed of
1t that morning. Upon his arrival here he was
taken to the residence of Captain Goddard who is
sued the warrant for his arrest and thence to iaiI
where he was committed for further hearing
Yesterday afternoon the further hearing was had
in ia pnn nnrlr nf tln ,,.1l l,zc-,
dard-District Attorney Ould appearing for the
Government and Messrs. Davidge, Chiffon and
Humphrey Marshall, of Kentucky, for the defence,
assisted by several legal advisers friends of the pri-
soner. 1t resulted in demand of $500, COO bail
which not being given, Mr.. Il. was finally placed in
custody of the Marshal of the District to be re-
tanned for trial at the Criminal Court.
Among those present at the Jail examination were
Messrs. R.W. Latham; - Lea, of the firm of Suter
Lea Co; IL. q. FAINT, Esq Hon. Humphrey Mar
shall, OF KY; Senator Green, of Mo-; Hon Mr.
Parrot, of Kansas; Cornelius Wendell, Esq, and
Others ~
The hearing Yesterday was orly to fix the amount
of bail to be required by the magistrate Messrs.
Davidge and Chiffon sent for as counsel by
Mr. RUSSELL and reached the Jail just previous to
the commitment.
After Mr.. Russell had been placed in custody of
Marshal Selden, he obtained permission from the
District Attorney to go to his private house in the
first ward, whittier he went in charge of Deputy
Marshal Phillips, and remained in consultation
with several friends until about hal-past o'clock
PM, when he was again conveyed to the Jail. He
occupies at present the office Of Jailor King, and
was visited there to-day by number of friends
Bailey was bailed on Monday evening after we
went to press in the of So 0OO the sureties be-
ing Mr.. Fant of the firm of FAINT, Rittenhouse &
20, bankers, and M. W. Gait, of the firm of Gait
Brothers, jewellers.
1t is stated that the abstraction of the bonds was
known as long ago as Thursday last, it having been
at that time communicated by Bailey to Secretary
Floyd. Bailey asked the advice of the latter
liad hot ba baS
give, but that on Secretary Thompson's return the
matter should be thoroughly investigated Bailey
confessed the whole matter to Secretary Thompson,
alleging that he had been led into the commission
of the larceny through desire to save the honor
OF Mr.. Floyd, whose acceptances to a large amount
in possession of Mr.. Russell, of the firm of Russell
Magers CO., Government contractors, would
otherwise have been dishonored, he (Bailey) ap-
pretended.
These "acceptances," it appears, are simply
memorandums of the amounts which would be due
at certain periods to Russell, provided he executed
his contracts with the Goverement, and invoked no
liability whatever, they being given to enable
him to obtain credit. The records, it is al
legged, prove that the existence of these ac-
ceptances was unknown to Bailey at the pc
riod of the first abstraction of bonds and
that his excuse in reference to Mr.. Floyd is
merely a subterfuge. Russell asked for these ac-
ceptances to show his creditors, to satisfy them of
MS resources. Similar memOrandums have been
given to public contractors for several years past
Those who profess to know the facts in the case
say that Mr. Russell, who has been largely engaged
in transporting United States stores across the
Plains to Utah and beyond, finding himself fnanci-
ally embarrassed more than year ago. obtained
the consent of the Secretary of War to draw upon
his department to the amount of $780, 000 The
Secretary accepted the draft. Some time after
wards he made a similar request for the same
amount, assuring the Secretary that the first draft
was taken care Of and the latter supposing that at
no time did his obligations amount to 100000
MIR. Kelly, Chief Clerk, OF the Interior Depart
ment, is now in New York for the purpose of hunt
ing up the missing bonds and identifying them.
The list of bonds missing, as far can be ascer-
tanned, and now believed to be correct, is:
Missouri per cent. coupon bonds s........ S37OOG0
North Carolina per cent coupon bonds.... 357 900
Tennessee per cent coupon bonds IA 900
$4,000
Consequent upon the discovery of the fraud upon
the Interior Department, there are endless rumors
adoatc' her detacatiOns coming to light. Thus
in the New 1ork papers of yesterday we find the
following:
SIT has been discovered within a few days that two
millions of dollars missing from the United States
Treasury that is not accounted for the books The
clerks nave been busy ever since the discovery searching
the books to ascertain whether actual robbery has
been committed to the above named amount not The
matter is not yet known to the public but the officers of
the Government are in the secret, and much
csed fearing the report may prove true right upon the
excitement consequent upon the robbery the Interior
Department
In order to separate the true from the false in
these times of excitement, it is proper to say that
there is not one word of truth in the paragraph
quoted-not one word.
THE SECRETARY OF WARS ACCEPTANCE.
The New York World says, editorialIy:
Here is copy of one draft, which we have seen,
on which the official acceptance of John B. Floyd
stands written, and which has had the honor of
being protested by a New York Bank for non-pay-
ment:
WAsHIEGToN CRY,
$4,000 July 10th, 1860. :
Four months after date pay to our own order,
at the Bank of the Republic, New York city, Ten
Thousand Dollars, for value received, and charge
to account of transportation contract of the
18th day of April, 1860.
[Signed.l RUSSELL, mayors WADDEIL.
To Hon. j. B. Floyd, Secretary of War.
Endorsed upon its face:
No. 50, WAR DEPARTMENT.
July l6, 1860. I
Accepted, JOHN B. FLOYD, Secretary of War.
1ndorsed upon its back
RUSSELL, MAJORS WADDELL,
SAMUEL ALLEN,
JNO. j. ANDERSON & Co.
And not only has the above draft, with Mr..
Floyd's acceptance been dishonored, but when
inquiries we're made by its holders at the depart
ment, the reply was given that upon its books there
was record of it.
The semi-oticial statement to which we have
alluded, SAYS
at is thought the Government is protected as
the acceptances more than cover the amount of
the bonds distracted"
We can credit too easily that Mr.. Floyd's accept
ances thus lllegitlmateiy put IN circulation, quite
cover the amount of the deaIcation, but what
legal value have the acceptances themselves? What
authority or what statute can Mr.. Floyd find for
transmitting his department into a banking estab-
lishment? Who gave him leave to prostitute the
power and privileges of his office to such uses to
pat his government on a level with the issuers of
postdated checks, fraudulent certificates and bogus
stocks, which the ready resource OF distressed
and needy rascaty?
In one of the New York papers of yesterday the
lost bends are described, and persons cautioned