The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1867-03-16
TELEGRAPHIC NEWS.


capitol was passed.
A bill aiding the southern branch of the
Union Pacific railroad was introduced.
The supplemental bill was resumed. An
amendment making all elections by ballot
was rejected.
An amendment directing that after re-
gistration the Commanding General of the
District shall order an election for con-
vention when the Provisional Government
shall order the convention was negatived
after long debate.
A motion to go into executive session
was stoutly resisted by the friends of the
speedy passage of the bill, but finally pre-
vailed by one majority.
Mr.. Sherman introduced joint resolu-
ton removing the disability from holding
Office from Governor Joseph E. Brown, of
Georgia, and r. NJ. Patton, of Alabama.
Referred to the Judiciary Committee.
After an executive session, the Senate
adjourned.
HoUsE.-Mr. Mallory, member from
Oregon, was sworn In.
A resolution ordering the immediate APP
pointment of a military committee, with
instructions to inquire into ordnance trans
actions, was postponed till December l.
The Speaker refused to appoint the COM
mittee partially, and said, if done, it must
be done in full.
Mr.. Van Wyck, from the Committee of
Retrenchment, to which was referred the
claim of the Richmond banks to certain
coin now on deposit in the United States
Treasury, makes the following
REPORT:
On the 18th day of March, 1865, the Legisla-
ture of Virginia passed an act authorizing
loan to the Commonwealth of 100000 in gold
and silver coin by the banks, and the appllca-
ton thereof to the use of the army of North
ern Virginia, ordering the Auditor TO pay over
the same on the footing OF u loan TO the Con-
federate States either TO the Secretary OF war
or TO the Geueral-in- Chief of the Confederate
Army, as the Governor may deem most eXpe.
dent to be used exclusively for the purpose
of procuring subsistence for the Army OF
Northern Virginia, directing the Governor TO
obtain from the Confederate authorities the
best security they may have IN their power TO
offer.
Accordingly, seven banks furnished 100000,
receiving State bonds security therefor,
100000 of which is now in the treasury of
the United States and is the subject OF this
report. The money was deposited by the
State 10 its credit i'll three banks, which were
public repositories, rs follows: Bank of Nir-
GINA, SlOS, OO0 Farmers Bank, Sll2,UO0; En-
change Bank $4,000.
The Secretary of the Confederate Treasury
caused TO be delivered 10 the Governor of the
State the following order:
RICHMOND, March IS, 1865.
H. Rome, Esq, Chief Produce Loan BuTeau:
Sir,-The State of Virginia has advanced
1900, 900 III coin TO the Government, for the use
of the Commissary Department, and agrees 10
receive in absolute payment for the same,
cotton, at the rate OF fifteen cents per pound.
You are hereby an thoriZed TO issue IN order 10
the fiscal officer of the State for 2,OOO, 900
pounds of cotton, III payment OF the same, &c.
(Signed) G. a. TRENHOLM,
Secretary OF the Treasury.
Captain Strother, of the Confederate army,
had authority TO receive the 1900 900. Just
before the evacuation of Richmond he did re-
ceiye s27l ,OOO the banks retaining 5000 He
disbursed $4,000 at Richmond, leaving S2iG,-
900, of which Sol 900 were iii checks drawn by
the Bank OF Virginia and the Exchange Bank
on their branches at LynchburS.
Captain STROLLER left Richmond on the ID of
April, 1867 with this sum under his control,
in company with officers of the banks, who
had in charge between two and three hundred
thousand dollars in coin belonging 10 the
banks, each party in control of its own funds.
At Dauyille, on the Sth of April, Captain
Strother agreed with the officers of the banks
that in the event of his being cut off from
General Lees army, he would restore the re-
maiuder of the fund 10 them, TO be credited
on the bonds of the State which the banks
held. They then proceeded to Washington,
GA. Captain STROLLER, on the 2lst OF April,
1863 had remaining $223, 929, which he paid TO
the bank officers, taking receipt for The same
stating that the same should be credited on
the bonds, provided the said coin and specie
checks shall be delivered in Richmond. There
was no statute authority authorizing this pay
ment by Captain Strother. The bank officers
cancelled and destroyed the checks, $4,000,
and held the remainder of the funds, together
with their own coin.
In May, ls6j, the banks of Richmond OBJ
tanned permit from General Patrick to bring
back their effects from Georgia, and started
with the coin, about $4,000. OF this, $4,000
vas of the fund received from Captain
Strother.
About eighteen miles from Washington they
We're robbed by Confederate soldiers disguised
in Federal uniforms of S2Jt,OOO III coin. OF
this, Sl05 900 belonged to the Bank of Virginia
Sl45 had belonged 10 the Strother fund. The
day after, the robbers restored TO the bank
officers Slll 200. OF this, one bag of 80. 900 was
ident iffed as the property of the banks. The
remainder could not be so identified. After
pa wing expenses the funds recovered amount
ed TO about 500, O00-suhsequently delivered 10
General Stedman 1T Augusta, and now on de-
post in the Treasury.
This matter has several times been argued by
attorneys for the claimants and the Govern
ment before the Secretary OF the Treasury and
the President.
The above facts are those agreed upon at the
last argument The bad faith commenced by
Captain Strother was continued by the banks.
Al one time their petition stated that there
existed no contract or dealings between the
banks and the Confederate Government by
80 ..lr "A fNNfn in
one dollar of the money in question. The
officers Of the bank verified by their oaths this
sta tement yet its error Is apparent from their
own subsequently admitted facts. They also
furnished afIidayits from the officers of the
Confederate Treasury Department that the
coin had not been under their control From
these allegations the solicitor OF the United
States Treasury then said:
As TO any interest of the Confederate Go
yernment in the coin, the only reason for sup
posing that any such ever existed appears
from the fact that the coin was removed from
Richmond simultaneously with the departure
of the rebel authorities therefrom but that
was certainly in no way inconsistent with the
private ownership asserted. The latter IS di-
rectly and positively asserted by sworn state
ments of the officers OF the banks applying,
and the former is negatiyed, so far rs II we'll
could be by the statements OF n person in the
employ of the rebel Treasury Department.
The President of the United States then is
sued an order Tor the resloratloh ol TIE COIN 70
the banks on cetain conditions, which, In the
Judgment of the United States treasurer, were
not complied with. Certain United States Of
ticers were still suspicious, and satisfied that
the coin had belonged 10 the Confederate Go
yernment, when il was At last discovered that
the negotiation had been carried on with the
Con federate War instead OF the Treasury De-
partment. This concealment and duplicity on
the part of the banks shows the character OF
their claim.
There can be no dispute that the banks
loaned the State of Virginia 100000 in coin
expressly 10 be advanced TO the rebel govern
ment. The banks received State bonds as Sc
curity and the State received Confederate