The Placer herald., 1865-01-14
Gen. Buffers Gold Speculation.

short time ago we noticed the fact of
the arrest of Gen. Butler, while in this city,
charged by Samuel and Andrew Smith,
bankers, with having entered their premises,
in New Orleans, in May, 1862, and taking
away, by force, about 100000 in gold coin.
Proper legal proceedings were taken 10y the
plaintiffs in the Court of Common Pleas, in
this city, and Gen. Butler gave ample secur-
ity to answer the case. Now his counsel
applies for an order to remove the suit into
the United States Court, which gave Judge
Pierrepont an opportunity of ventiating the
matter, which he did in racy manner. 1t
appears that, before going into court counsel
for plaintiff rendered Gen. Butler the choice
of courts in which to adjulicate the case,
but was treated with silent contempt Now,
however, as matters begin to look little
squaly, Butler would rather take the chances
before a Federal Judge than trust to the
State authorities. The manner in which
Butler obtained possession Of the gold is
explicitly told in MIR. Samuel Smiths afida
Wit. II seems that on the oath Of April,
1862, when Admiral Farragot passed the
ports below New Orleans, all who had money
and valuablcs concealed them, from fear that
the city would be given to riot and pllage
on the entry Of The soldiery. In this diem
ma Mr. Smith took S54 900 in gold and Sc,
creted it in The air cells around his safe,
leaving only $4,000 in The safe. There was
no pilage, and General Butler, after assum
ing command Of New Orleans, directed all
persons to resume business, guaranteeing
ample protection. Soon he paid visits to
the business aad banking houses, aud inves
tigated their private affairs. Ia the banking
house Of Mes,rs. Smith, he found only the
$4,000 in gold but bonds shoaing 100000
on hand. He demanded the balance, but
was imprisoned and threatened with being
sent to Fort jackson, when he revealed the
place of con"ealment. General Butler tore
away partition, obtained the gold, and
returning $4,000 of the whole amount to
Mr. Smith, departed with the remaining
s50,000 Mr.. Smith was then released. He
pronounces the statement that this gold
was condemned by military commission as
the proceeds Of robbery of the U. S. Mint
at New Orleans, without the shadow of
truth, utterly malicious and baselv false"
When Gen. Butler left this city, after the
election and his arrest here, upon his return
to Washington, the city papers were flooded
with teegrams, of which the following, from
the 1ribune, is specimen:'
"lhe Coppelhead attachment for General
Buffers New Orleans gold will have to pen
citrate the vaults Of the United States Trea
sury before it will be forthcoming-e every
dollar being in the keeping of that depart
ment."
EX Judge Pierrepont had luckily followed
Gen. Butler to Washington, and seeing these
positive and numerous dispatches took occa-
sion to cal upon tue proper authorities. and
learned chat not dollar Of this gold had
been paid into the Treasury, and that not
dollar OF it was then, or ever had been, in
possession Of the War Department." And
thus maiters stand, as the Judge Of the
Court of Common Pleas has decided that
this case shall not be transferred to a United
States Court, Lut remain where it was begun,
under his own jurisdiction.
n. Y. Day Book.