The Daily empire. (Dayton, Ohio) 1865-1867, 1866-05-07
BY TELEGRAPH.
Interview between the President
aud Chief-Justice Chnse-Trial of
jefferson DaYis-The Tax Bill
The Bank Failure, &c.
WAsHINaroN. Man 5.

The Bank Failure. DC.
WASHINGTON, May 5.
Chief-iustice Chase hadan interview with
the President tonight mt nine O'clock. rela-
tive TO the trial of JEFF. Davis and the res
toration Of civil law IN Virginia. Mr.
Chase wanted to be assured that the United
States Courts would be unobstructed by
military ordere. He required TO his letter
TO Mr.. johnson of last October, In which
he declined to hold the United States Cir
cult Court in Virginia.
so long as they were surrounded with
bay0nets and subject TO the Interference OF
military commandants, he would still re-
fuse to hold Court If the military status
was unchanged. He understood the peace
proclamation as restoring the writ OF
hdbeds corpus, but was ignorant of the con-
dition of affairs in Virginia, and in doubt
whether the military or the civil authori-
ties had precedence. The President in
formed him that SO far as his official infOr-
nation extended. the civil law is now SUI
preme In the State of Virginia, and the
Courts could proceed without fear of inter
ruption from military officers; and such, In
fact is the case so far as he knows all over
the land where the civil Courts are organ
lied.
1t now rests with the Chief-iustice, the
United States District Judge of Virginia,
Judge Underwood, and the United States
District Attorney, Mr.. Chandler. to deter
mine whether Mr.. Davis shall be indicted
and tried In Virginia or not. The United
States Court sits on Monday at Norfolk, and
1t is understood that Davis case win be
brought before the Grand Jury to be com
vened In that city.
| met an officer to-day who saw JEFF. Da-
Wis last week in Fortress Monroe. Davis
was witness of the trial of some large
guns. He was attended by military off,
Ger who stood by his side, and by two SOL
diers with muskets who stood few feet be-
hind Davis, The Ex-Presdent of the late
Confederacy was apparently in excellent
health. Heis permitted to walk about daily
within the bounds of the fortress, ana walks
five or six miles per dayn f.,se "a H
NThe Tax Bill was completed this evening
by the Committee on Ways and Means, and
tile printers are hard at work tonight pre-
pairing it, for use on Monday, when the bin
is to be taken up as the special order. 1t
has been SO completely altered that it does
not much resemble the bill reported by the
committee last week.
The failure of the Merchants National
Bank of this city is more hopeless than at
first supposed. The Government will lose,
by the disobedience of Paymaster Paulding,
about SG00,000. The United States Treas
ury had sufficient surety in Government
bonds to make the Government the credi-
tor of the bank about $l22,000, so far as cir
culation and Government deposits are con-
cerned; but Paymaster Paulding had trans
ferred his deposits from various depositor-
les, to the amount of three-quarters of a
million. About 100000 of this will be lost.
An order from the Paymaster-g of
May 80, 1866, addressed to paymastsrs, di-
rects the drafts ON authorized repositories
shall be deposited and kept with those de-
positories till exhausted by the checks of
the paymaster. Paulding, it appears. in
disobedience of this order, removed the de-
posits from other Repositories to, the Mer-
chants National Bank for personal gain,
and hence the loss which he can not make
good to the Government. r-r