, 1861-04-02

ment, made to the Select Committee Of the
House OF Representatives, and need not now
repeat them.
BE RFFECTs TEE LoAK.
+, II Is sufficient to say that he informed me
that he had some state stocks at his command,
which might use for purposes Of hypotheca-
tion, if I could return them IN ninety days. I
return them in that time. The loan was ac-
cordingly effected, and proceeded, on the
evening Of the Same day, to New York, with
the State stocks, and used them in the manner
and for purposes already Indicated When /
obtained them and pledged them for money,
with which to protect the maturing accept.
ances Of the War Department, was wholly
ment made to the select committee under
the snIemnitfes Of a Judicial oath. I was not
aware, at that time, nor for two or three
months thereafter, that there -was an Indian
Trust Bond In existence. It was only when
stocks declined, and the parties with whom
had made the hypothecatlon notified me that
they must sell them OF have an additional de-
posit TO make good the margin, that learned
their true character. returned to Washing.
ton, and sent for Mr.. Bailey, with the view Of
Informing him that would not be able to re-
turn the State stocks which I had borrowed
from him, in the time stipulated in our agree
ment. '7'4 +. '~'
HE LEARNS THAT TIE BoEDsWERE STOLEN.
In the interview which then had with him,
told him Of the demand that had been made
upon me by the parties who held them to in-
crease the deposit, and Of the notice Of their
determination to sell them unless such addi-
uonal deposit Was made. He then told me
for the frststime that they belonged to the H.
dian Trust Fund. This disclosure completely
overwhelmed NE. It added ENHANCEMENT to
embarrassment. saw instantly and with IN
tenss reality how difficult 1t would be to extri-
cate myself fom I1Y unfortunate dilemma. I
had no means at my copmand with which to
redeem the hypothecated bonds, and as they
were likely to be sold, I feared that l might
not be able ever to recover them. The gov.
erument owed our firm, as will be seen from
this papet, for losses and freight in 1857, ex-
elusive Of interest, $955, $50. From motives
presented for adjustment to the department.
and Congress. I knew the great diffculty of
securing payment for so large an amount, and
SO presented as to secure an Endorsement OF
the principle involved, and in the hope, after
wards, Of obtaining the entire amount. The
department. was in possession Of all the facts,
and, as far az I was able to Judge, had taken
tending* to understand fnliy the Justice OF
each particular item thereof: The 1ate gecre.
tafy Of War says, in his published statement,
that we were entitled to "more than half q
million OF dollars
NO TIME FOE CALM REFLECTION.
When I discovered that the bonds hadbor
rowed and hypothecated belonged to the m
dian Trust Fund, would have freely given
the who1e Of this large claim, and everything
was worth besides, to have been able at that
moment to restore them. Other acceptances
Of the Var department were then maturing,
aud likely to 60 to protest. This knew
would 6o impair the credit OF npr firm IS to
7enaa aAr the sale Of The bonds certain, and their
recovery in; ;'aossibIe- bad no time to deyote
to calm reflection. 4 week or ten days might
have enabled me to mature some plan by
which to recover and restore them, buss 70 tie
meantime they were likely to be sold. Then,
ment aeceptances which had been issued to
our firm, under circumstances that placed me-
under the highest possible obligation to pro-
teet them. must ineVitably 60 to protest. .
RUSSELL GETS DEEPER IN EHR NRE.
In the stress Of my difficulties, ] Bss In no
condition, and, as hgye said before, I had no
time to weigh the. responsibility, on the one
hand Of Wrecking our firm, discrediting the
War Department, and permitting the hypoth-
against that on the other hand Of accepting
more bonds With which to protect those had
already used, until Congress ahonld authorize
the Department to pay us our dues. deter
mined upon the latter alternative. This de-
cjsfon involved the necessity Of usIng sdfR-
Gent amoant Of bonds to protect from protest
the other maturing acceptances Of the War
Department; for It Waa perfectly obvious that
aprotest would put 1t wholly azid pcrmanent-
~ ont Of my power to return either the first
or SECOND lot OF bonds, Accordingly, ae-
eepted an additional lot, md used them, part
y to protect those already hypothecated, but
chiefly to raise money upon which to pay off
the other aceeptances then maturing.
HE1s IN IMMINENT PERIL.
It is proper to remn1k In this connection
that In receiving the second lot Of bonds
gave In exchange therefor the receipts Of our
firm in my own handwriting, to be deposited
IN the Interior Department IS the evidence
that I had received them. The money due
our 6rm Was very largely IN excess Of the
bonds, and as / left In the department the eyi-
dence that had received them, theze could
have been no Intention On M part to aefraua
the government, nor Is It possible thst the gov
e1nment can lose one dollar On account Of This
transaction. a. w."
Shortly after I obtained the second lot of
bonds, the monetary crisis, oeeasioned by the
agitation Of the country, came on. Financial
embar1assments began to be felt al over the
country, Stocks Of all kinds commenced run.
ming doEn with . 1apidity that filed me With at
the greatest possible a}grHa. MY fear was that
bonds I had hypotheeated Would 70 down to
q very low figure and be sold at such sncri-
fee. as wonld still further embarrass me-, I
saw, in . word, that waa In imminent peril.
TIE SECOND THaow OF THE DIuE TO RECOVER
THE FIRST.
i bad received the second lot Of bonds, the
better to enable me to recover the first, and
toiA q hs.onze1gs ef Gaeif true eaararter. did
this under the force Of circumstances which
was entirely unable to control. did it,.
IS ! now most solemn1y aTer-wlth as pure a
motive as eTer moved an honorable Iaan.7 But
] now saw that was IN danger OF losing These
pledged. The thought shot through me Like
. fame. My misfortune assumed an altitude
and expansion that shut out all hope for the
future wonld have given the world If had
never been engaged Ia the serVie6. Of the gov
ernment, BY whose direct agency, la withhold
ing our dues. my embazI Iassments were first
brought upon me. ::
x FoRLoRN HoFE. ''
As last hope determined to throw al the
bonds upon the market, and even to obtain and
sell others, with the view Of providing the
means ywhereW1th, In connection with other
resources, to repurchase the whole, when they
reached fheiF. loWast market price, But in this
attempt -! was suddenly eat short by the
The course pursued toward me By TIC GOT.
ernment when the facts that have now de.
ta3led became publicly: known, is already well
understood. lwas Immediately arrested and
held to hail in = sum exceeding anything ever
before Acknowledgements !. ofj;i;dieisl proceed
ing In any country in the world NY friends
IN the VEST eama promptly forward md prof.
fered security to the amount Of millions and,
although f~as IN the nidst Of strangers, near
" tWo thousand miles away from home. this
pTonered assistance WIS rejected, aud resident
security WAS demanded to thfee-ffths Of the
whole aMonpt, This, Of course, wa unable
}n ri nf yvhS +