New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1860-12-26
THE GREAT NATIONAL ROBBERY.
FURTHER PARTICULARS.
A THEORY FOR THE THEFT.
Selling and Buying Southern Stocks.
1AYL z Y d Ur Cd.
Special Di.pog5i 70 tn, Pa,,aSdpsia Pres.


| Foyd TO i'd Russell, Majors & Co., in complying with
their huge contract for the transportation of army sup
plies from I've Missouri river 70 Utah. accepted their
drafts in son instances absotely. in others conii
tionalIy for sum exceeding sSo0,000 Subsequently
| be allowed III ssell, Majors & Co. to draw the whole
amount due tha under their contract with the
ance on Il cir pa, that all of his accepances Score
tary of War sbcs Id be retired Drafts matured and
Russell Majors & Co. were unable 10 meet them and
others were soon 90 mature, which, unless money could
be had would be "a Otested also. Under these crcum
stances Mr. Bailey the clerk in charge of the Indian
Trust fund who il said, married niece Of Secretary
Floyd was approacbo, BY an agent of Russell Majors
Co.. and told that nlcss the scceptances referred
to were provided for Immediately, the Secretary Of
War would be dsgn ced irredeemaby. He wac
then asked to lend to !ussell Majors CO.. tempo
rarily, State bonds of aie Indian trnst fund 10 he
| om0nat Of eight bnndra and serenity thousand dat
iors. Bailey, Influenced ~ the conviction that this
breach Of trust was the ONLY means Of saving the honor
Of the Secretary of War; ID satisfied, also that Rus.
sell, Majors Co.. would "a able 10 replace the bonds
according to promise, defva ed bonds amounting to
s%OG0 to Maj. Russell, tho principal Of that firm,
who hypotheeated them to the Bank of the Republic,
New-York. This ia said to te Baey's version of his
unfortunate breach Of official trust which it im.
possible to conceal longer iuas uch as the Indian Bu
eau had applied for the eoupon TO collect the January
interest the bonds absirarted- Hence the confess
sion OF Bailey TO the Secretary Of the Interior on Sat
urday, Of the whole affair.
Bailey protests that he reca'yed a cent of the
roceeds Of the bonds and this wouId seem to be
authentic, seemingly, can be relied upon We cannot
youcb of course for s correctness in all particulars.
II proper TO say that the Secretary of War ia i'm
cated in novice with the abstraction of the missing
bonds nor il it believed he knew augs Of until Sat-
urday last His culpability, if any attach to him.
lists in the acceponces for Russell Majors Co. II is
understood however, that sneh has been the practice
Of the War Department and of other departments of
the Government, in dealing with contractors having
heavy monetary transactions with the Government.
II ii be that these acceptances of the Secretary of War
for the year 1860, the United States will be liable
for srch OF them M were unconditional II Is alleged
in well-informed quaIers however that the accept
snces TO cover the amount which would be prob
ably due to RUSSELL Majors Il Co account Of the
transportation Of army supplies for the year 1861. In
that event the los 10 the ned States 1t is contended
will not exceed $50 900, those acceptances being re-
garded clearly illegal. We do not think If the
acceptances of the Secretary bind The Government in
Gaze, for the transportation for 1860, they bind
equally for 1861, when held by innocent third parties
Tie loss TO the Government viii be $50 600 certainly
and may exceed al 100000.
The bulk of the bonds distracted, it is believed,
were bonds of the State OF Missouri, but there
bonds. also, Of Virginia, Tennessee, and North
Carolina.
We have considered it dne to the Secretary of War
TO give that yersion Of this IameutabIe transaction
most favorable to his reputation, because his friends
claim that lie had no prvity Of Mr.. Bailey dealings
with Russell nor yet any knowledge of 1t until was
disco by the voluntary confession Of the detaung
clerk II il due to the public, and 10 ourselves, as
faithful chroniclers, however, TO state that it is
asserted and believed by many, even among the
political friends of the Secretary of War, that he is
fatally implicated, and his character wrecked forever.
Time and further Developments will show the Justice
injustice Of these suspicious which founded for
the most part, upon the cloud which the Willetts
10 M. staraeter of Mr. FLOYD 0"' a''''' nave
The Presidents friends are indignant, Of course, in
view Of the announcements that Secretary Floyd took
the responsibility of giving the accepances which have
brought such heavy misfortunes upon the Adninstra-
ton. Il
II appeafs that the Secretary OF War has accepted
be- drafts Of Rssel, Majors Co., for services yet 10
be performed AS they could raise no money on these
acceptences which We're Illegal as the Secretary OF
War had no right TO pay for services yet TO be done,
these gentleman procured, through the assistance of
Washington banker, eight hundred and seventy
thousand dollars worth of Indian bonds from Bailey,
in order to secure the accordance oi Mr. Floyd. The
coupons due on the ls of January are said to have
been cut off in order to prevent detection The records
in The bureau haze either been purloined or DESTROYED
The bonds mostly OF the States OF North Carolina,
Niaeouri and Tennessee. Chief Clerk Kelly, OF the
Interior Department left this afternoon for Hew-York,
for the purpose Of ascertanng where the bonds have
been dfpoied Of Bailey is relative OF Martin, OF
Lecompton notoriety. He was sent some time ago
to California TO examine the accounts OF Thomas
Henley, charged with being defaulter. Recently he
signed circular stating that, IA native OF South
Carolina be would hold no Office under Mr. Lincoln;
defslcation Of two million dollars in another de-
partment il spoken of this evening. This is terrible
blow upon the Administration and the Seoeders, but
viii follow.
From TSc Warrington Star. Dec. p.
n seems that the Secretary had endeavore4 TO induce
the reaulsr Treasurer of his Department Mr. Peter
hammond, to become their custodian, but not being
obliged to do BY law regulation, he declined the
responsibility of their charge. The Secretary then en-
trusted them to the keeping of Bailey, the Depart
ment's Law Clerk, who wac under bonds OF $l0,0Oo
for the faithful performance Of other trsts-not that
one. -.
One theory Of the abstraction ID that Bailey and his
IL 10, laa hN
in tie stolen bonds the first OF which were taken as
early as FIVE months ago. by selling them ct the COM
paIatvely high prices az which they SOLD some time
pnce and buying them back aud replacing bem IN the
safe when the sectional troubles they knew were about
to arse should depress their prices IA at present and
that bis confederate having failed TO return any Oh
them far, ID. became alarmed and made bis volun-
tary confession TO the Secretary.
Russe il aid not TO be the only person implicated
beside Bailey A Washington banker and Others
whore names we have not been able TO learn, are ru
nored at the Department TO be we'll nigh as deeply IN
yolved in the transacti0n alders hbeors, &c, ana
| NJ sharers in the contemplated profits Of it.
Bailey had g. 000, 900 in such bonds In his custody
| and might easily have taken the whole. our I'M
preston is that the particular bondr can be iden'ined
| Ii 3d. while parties who may have innoeently pur
chased portions of them may lose their money 80 IN
vested the Government may not ultimately nc Josef
| Bailey was appointed to Office on, perhaps tho
strongest testimonials rs 10 his alleged hgh character
that we're ever offered in behalf Of any other sppli-
cant fo Government clerkship, though, since bus APP
poiutment be has been known TO the men about town
~ fast liver and a regular frequenter OF the aFo
| bank.
II il further said that Russell obtained from the Bank
| Of the Republic in Ncw-iork, on tho state bonds
that bank now having them IN its possesslon-the mon
ey with which to take up the accepted drafts on tna
War Department, II is doubted whether the accepted
dr;.ns which Bailey held security are really any Sc
euriy whatever But that fact will be settled very
shortly, We appreLend, OIL further investigation
| WAsHlsGTos, Tuesday, Dec. -, ISo'.
Mr. Ru.e arrived in this city this morning IN cam-
psny with Detectives Allen and Hughes. His bail WA