The New York herald., 1866-05-20

The Late Defalcation NJ Warrington
The Conduct OF Freeman Clarke.
During the rebellion we published accounts
Of enormous frauds upon the government by
contractors for all kinds Of supplies The
pressing necessities of the government at that
time might have been some excuse for base and
covetous individuals to prey upon the treasury
of the nation; but nothing Of the kind now
exists. We are in state of peace and rapidly
returning prosperity. The government is cor
daily supported by the people in its financial
operations, as is daily witnessed in the
amount of money paid in through direct
taxation. Why, then, should the government
lose its money under the very eyes Of the most
prominent officers of the Treasury? It is
hard enough for the people to bear the pre-
sent burden of taxation, no matter how cheer
fully borne, in order to supply funds to carry
on and maintain the credit of the government
and liquidate the national debt, without having
the funds carelessly squandered or corrupty
disposed Of The recent smash up Of the Mer-
chants National Bank in Washington, a govern
ment depository, by which the government
loses some seven hundred thousand dollars, de-
mands immediate and thorough investigation
by Congress. If such things occur at the door
of the Comptroller of the Currency, Freeman
Clarke, what may be expected at more distant
points? Mr.. Clarke, by permitting these funds
to be deposited in an unsound institution,
showed that he was not fit to occupy the i'm
portant place he does, and therefore Congress,
to whom he is alone responsible for his official
acts, should remove him at once. Congress
will not be doing lis duty to the country unless
it takes immediate steps in this direction.
There is altogether too much looscness in
the management of the financial affairs of the
government. The funds are deposited in GER
tain national banks, and we hear that per-
centage and bonuses are paid to government
financial officers by the banks for the priv.
lege of holding therT money. On the
18th of March last, according to reports
presented to Congress, nearly twenty-five
millions of government funds were on deposit
in these national bauks. Of this amount more
than one-half was held by national banks in
cities where Sub Treasures are established,
namely:--B Baltimore, Boston, Buffalo, Chicago,
Cincinnati, Louisville, Memphis, Mobile, New
bern, New Orleans, New York Omaha,
Philadelphia, Pithburg, st. Louis St. Paul,
Washington, D. c., and we suppose we may
include San Francisco and other cities on the
Pacific. There is no knowing at what moment
some one or other of these national banks may
burst nm and the government be the loser. as
in the case of the bank in Washington. There
fore these funds should be at once removed
from these irresponsible repositories and
placed where they belong, and that in in the
vaults of the regularly selected Assistant
Treasures of the United States. Meanwhile
the work of financial reformation should be
commenced by Congress- acting promptly In
the matter of the removal Of the Comptroller
of the Currency, Freeman Clarke, whose am
bitious schemes are likely to occasion infinite
mischief to the finances Of the country.