New-York daily tribune. [volume] (New-York [N.Y.]) 1842-1866, 1861-02-13
How FLOYD and Russell Flew their Kites
MIR. sucHANANs CONFIDENCE.
ysR. BENJAMEN's ADVICE.
REPORT OF THE COMMITTEE ON THE ABB
STR ACTION OF INDIAN BONDS.

REPORT OF THE COMMITTEE ON THE Alb
STRACTION OF INDIAN BONDS.
The Select Committee, TO whom was referred tne
resolution of the House, adopted ON the 24'h Gay Vi
naceuber last directing them to inquire into and re-
port the facts in relation to the fraudulent aosae
Of certain bonds ED by the Government IN ,rse oi
The Indian tribes from the Department Oh TIE
and 10 whom was also referred the COMMUNICATION VI
the Hon. John b FLOYD, late Secretary OF war; ana
the letter of the Hon Robt McClelland late Secretary
Of the Interior beg leave respectfully 70
REPORT
~, nror the day of their appointment, they
ared TO The Interior Department, and held an inter
view with the Hon. Jacob Thompson, then secretary
f said Department aud expressed 10 him ther desire
70 enter upon the duty assigned them al as carry
period as would compoTt with his convenience, ana be
Consistent with the public interest Three days there
after aud they were authorized TO employ
nenographer, your Committee organized, and have
kbored to bring their 70 an early termna-
ton. with diligence that has been quickened by an
appreciation Of the grave character OF the SUBJECT COM
nitted To them and Of the interest felt by the House ana
ly the country in its remarkable details IL soon be-
same evident that the distraction OF certain Dohds
from the Interior Department, fact easily sscefained
and indeed, admitted by the person VINO TOOK tnel,
was an incident Of minor importance In comparison
with the transactions preceding and oonnesNo WIN
ahat act and your Committee therefore consdereaH
Incumbent upon them 10 trace, as accurately ana as
thoroughly as possible, through the tortuous winnings
sf vast and comphcGt.d Interests, and extensive,
HbonQh concealed, rimiio;1 ns the mOuves ara pur-
oses and deeds of those no been the parties 10
daring and unprecedented fraud upon one OF The De
partments Of the Government. In view OF the magni-
sude of the offence, and the great loss inVovea .oty
Investigation TO the furthest limit OF the authority
vested in them. The want OF time, rather than the
hack of zeal has prevented them from obtaining all the
Information they desred yet enough has been ascer-
eained 70 satisfy in tner opinion, the material mqui
mes with which they were charged by the Honte as
they think viii appear from sueclnct account OF the
evidence that has been addueed before them
nv reference 70 the abstract marked d" A" herewith
transmitted 1t will be seen that this Government still
holds State bonds and certificates and United States
stocks for certain Indian tribes, to the amount OF "
SIS 24 g. These bonds well the $40 sbsracted,
and one Indiana bond handed to the Hon. o. N Fitch,
and not returned by him TO the Department for reasons
nssigned in his correspondence with GODDARD Bailey,
were purchased from time TO time. by authority Of law,
with the money of the Indians arising from treaty slip
plations Originally they in charge Of the Indian
Bureau, while that Bureau was connected with the
Department Of War, and remained III It's custody aller
became one Of the Bureaus Of the Interior Depart
nent in l849 and from that time up to 1897 In that
year the custody Of the securities was transferred 10 the
Secretary of the Interior The Government havDgthe
bonds in its possession was the Trustee for the Indians
who were the actual owners Of them, and, presenting
chat its agents have exercised ordinary diligence and
care their custodian the question arises as 10 the ex-
tent of it's liability for their loss. Your COMMITTEE,
however does not propose to pursue that inquiry as
they cannot doubt that great and magnanlmous Gov
eminent will not permit those who have committed
themselves TO ts protection TO be robbed by its officers
or employees, without making prompt and ample CON-
pensaion. Yet the disregard Of these fduciary obga
lions would seem TO aggravae the turpitude OF the OIL
fender whose felonious hand could nile 20 sacred
tust Such an act furnishes most mt nchoy evidence
sf the decay Of public virtue and Will remain blot
spon our history and an indication Of our downward
sareer. In this respeet 1t matters but he who was
She transgressOr The fact Of the commission OF the act
ut q moment when thought we had reason to boast
Of our good faith and integrity will remain liked IN the
public mind, and be remembered az dark ofense
when its guilty perpetrators have been long forgotten
THE MANNER OF KEEPING THE BONDS.
Under previous Administrations the bonds were
placed in the immediate charge of clerk selected
for his integrity and capacity who kept them in safe
"a the Indian Office. No stamp other mark OF deslg-
nation placed, with the exception of small por-
fion upon any Of them; and the only safeguard the
Government had was the fsthfulness and honesty Of
Che person ntrused with their keeping SO careless
mode Of transacting the pubic business, and admins
teng trust delicate and important astounds us by
the magnitude of its folly. Neither the Comm issoner
of Indian Affairs the Secretary Of the Interior ever
counted the bonds In person and the only information
tha either of them could have possessed touching their
safey the payment Of the coupons every six months
ard such examinations they occaSiOnay chose 10
order 10 be made by others. Fortunately for the Gov
eminent, however, loss was sustained during pre-:
vious Administrations is there the slightest ground
70 believe that the Hon. Robert McClelhnd Of Mich,
former Secretary Of the INTERIOR whose supervision u
the trust while il remained In the Indian Office has
been called in question, and whose letter referred
20 your Committee acted a; any time or in any way
Mnfaithful 10 IT, On the contrary the evidence Of Mr.
Henry Beard entirely exonerates him from any blame,
further than the expression already made by the Com
mtee Of their opinion Of the mode In which the bust
ness was generally managed. Your Committee will
not pause TO inquire which Secretary exercised the
greatest watchfuness and care for 1t lie not within
their province to institute such investigation
Those DESTROYS of further information obtain Il from
abe records of the Interior Department. Still they
deem It but Justice TO add that they have discovered
nothing TO involve the late Secretary, the Hon.
Jacob Thompson, in the slightest degree in
tbe fraud and nothing TO indicate that he had
knowledge Of it until the time Of die disclosure by
GODDARD Bailey Soon after he entered upon tie duties
Of his Office, at the commencement Of the present Ad
mnisrssoD, he appointed two additional Disturbing
clerks for his Department, one OF whom was Mr. Bal
ley, who placed in charge of the Indian Trust
bonds. His letter Of appointment signed by j. Thomp-
son. Secretary, bears date July 1857, and, among
ether things says: Under this appointment desire
particularly that you should take charge of the stocks
held IN trust by the Head of the Department for the
benefit Of the Indiana collect the interest thereon as
becomes due and see that the Is properly paid
into the pablo Treasury" A bond was required Of
him, which be subsequently executed in the penal sum
of s. 600, WIKI Benjamin McCulloeh Of Texas, and
WIN. G. Corrier Of Charleston, y. c., securities
This bond was acknowledged before Moses Kelly,
j. r., and It's sufheency certified TO by "Philip Bar
ton Key, United States District-Attorney." 1t was
then approved by ~ Thompson" Copies Of the APP
pointment and bond will be found among the accom-
panymg documents. The evidence shows that Mr.
Bailey TO Washington bankrupt in fortune and
rs political adventurer, seeking Office. He brought
with bin, however the highest testimonials of conf
dence and respect from various distinguished gentle
men in Alabama, where he lived, and in South Caro-
nina, where he was born and had previously resided.
Being man Of acknowledged talents with these evil
dences Of capacity and respectabEty, we not
pfieed that the Secretary Of the Interior reposed conf
aence in him. While be should, perhaps, have exer;