The New York herald., 1867-07-20
pIr. McCuliocI, the Treasury Frauds. aud
Congress.


sury in the Internal Revenue Department. II
is suppressed as much as possible by the friends
of Mr.. McCulloch, by tho fraudulent distllers
influence in Congress, and by those interested
in shielding the guilty internal revenue Off
cials but the frauds are so fragrant and gigan'
tic that the facts relating to them cannot be
smothered. The subject is Of 20 much import
ance and 80 replete with startling revelations
that with all the efforts to pass it over or make
the best Of it the truth will appear This was
seen In the proceedings Of Congress on Thurs
day. So sensitive was the House Of Repre-
sentatives on tho subject that little spark
created great blaze. The violent language
used and the whole spirit Of the debate showed
the intense interest and deep feeling among
the members, Of that body. Mr.. Schenck, in
speaking Of the delinquent internal revenue
officers and the Metropolitan Board Of Investi-
CATION, said that the Secretary of the Treasury
kept his "brood of rascsls in Office, and then
appointed committee to watch them" while
other members attempted TO defend Mr. McCul-
loch, without denying, however, the enormous
frauds committed under his administration of
the Treasury
But with all this commotion it is evident that
Congress has neither tho knowledge nor capa-
city to grasp and deal with the subject The
manner in which it was brought up shows the
ignorance and incompetency Of members. The
question raised was simply as to the power and
right of the Secretary to appoint the Metro
politan Board Of Revenue. This was very
small affair in comparison with the greater
question of the frauds themselves, of the par
ties responsible for them, and tho remedy to
be applied. II is a rule of mathematics that
the lesser is swallowed up by the greater but
these Congressman do not think SO they
wrangle over trifling matter of authority in
appointing commission TO investigate the
frauds, while these monstrous frauds, the causes
of them and a remedy against them they leave
untouched. The Board is well enough, and
we think the creation of it is about the best
official act Mr.. McCulloch ever performed. 1t
is composed Of the right sort of men, and may
render valuable service to the country. Why
could not Mr.. Schenck find something more
important and more to the point in exposing
the mismanagement Of the Treasury Depart
ment, which has led to these stupsndous losses
to the government? AS to investigating the
frauds, Mr.. McCulloch is doing right provided
the investigations be thorough and honest;
but the country wants to know how far he is
for them or who is responsible.
Mr.. Schenck, however, was not the only
member who failed TO see his duty or the i'm
portant point in this matter of frauds on the
revenue. Mr.. 1ngersoll entered into defence
of the Secretary on the single point of the
to appoint the Board of Investiga-
tion. He abused New York well for It's frauds
on the revenue, but said nothing about the six
hundred barrels of contraband whiskey that
were hauled out of a cave in his Congressional
district. We would not presume to say Mr..
Ingersoll had any knowledge of this fraud upon
the revenue in his district; but we must say 1t
appears strange that members of Congress can
find any reason for defending an officer of
the government who has through neglect of
duty lost to the Treasury hundreds of millions
of dollars Mr.. Kelley could see nothing more
important in the matter than the spoils of
Office. He dwelt entirely upon the mere ques-
appointed to Office. AL his anger was vented
on this question. Mr. Allison, Mr.. Van Wyck,
Mr.. Barnes and others, who participated in the
debate, saw nothing Of more consequence than
the Offices or the right Of the Secretary to insti
tute commission of inquiry. This imbeclliiy
- <.f thn orx
question at issue on the part Of Congress is
amentabls. 1t shows plainly the incapacity
of that body to comprehend and deal with
matters of great public interest We hardly
know how to designate its ignorance and
Had 1t admitted p. 7. Barnum
10 seat in face Of his clear de'eat by the
people of Connecticut we might call II the
Barnum Congress or the Humbug Congress;
but, looking at its conduct about the revenue
frauds, we may properly call it the whiskey
Congress.
All this twaddle about small matters or
Indifferent questions amounts to nothing. The
frauds, the cause of them and the responsibility
for them are the proper subjects Of inquiry.
Mr.. McCulloch may try to lay the blame on Con-
gress or his subordinates; but the truth is, he
is the responsible party. As Secretary of the
Treasury it was bis duty TO see that the revenue
was collected and frauds prevented. II is nom
sense talking about the tax being so high that
Il cannot be collected. The excise tax on
spirits in England is higher than with MS, is
above two dollars and fifty cents In gold,
equal to about three dollars and fifty cents in
currency and yet 1t Is collected there. Why
not here! There is no reason in the world
why It could not If the head Of the Treasury
did his duty. If the Treasury continues to be
in this manner, and Congress
should show no more ability TO correct the
evil, we may look for national bankruptcy and
q repudation Of the national debt We shall
see the extraordinary anomaly Of a prosperous
country In industry and commerce with an