The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1867-03-16

Investigation Of the Affairs Of the Treasury
Department.
The rumor that stupendous frauds have been
committed in the Treasury Department has led
to prompt action in Congress to ascertain the
truth or falsehood Of the report On the mo-
ton of Mr. Henderson. in the Senate, COM
mi.tee of three was appointed to examine into
the management Of the printing bureau of the
Treasury Department, and Mr.. Covode has
given notice in the House that he would offer
a resolution on Monday for select committee
Of five to investigate the charges and to
thoroughly overhaul the affairs Of the Depart
ment 1t is possible the rumor of fraud may
be unfounded or much exaggerated, but this
has to be seen. Whether it be so or not, the
investigation will be useful, and, If thorough,
we have no doubt . startling exposure will be
made of the loose manner in which the bust
ness of the Treasury Department is conducted.
Looking at the enormous and irresponsible
power of the Secretary, as well as of the heads
of bureaus under him, together with the facili-
ties for frauds, we should be more surprised to
hear that the government has not been
deirauded than to learn that it has. We have
only to read the history of the Bank OF Eng
land to learn how difficult il is to avoid
robbery, forgery or cheating in q great
moneycd establishment That establishment
has throughout every period of It's long exist
ence been defrauded by forgers, robbers and
dishonest employees, in spite Of the extraordi-
nary safeguards which il has from time to time
adopted. 1t has been much better protected
than our Treasury Department.; still it has sui.
fered. II, then, the Bank of England, with oil
its care and excellent management and with
money transactions hardly amounting to o
tenth part Of those Of the United States Trea-
sury at the present time, has not escaped
frauds, how can we expect to escapes There
arc skilful rogues here as we'll as in England.
Our former inexperience in such vast transac-
tons, in which thousands Of millions Of bonds,
certificates Of Indebtedness and paper money
are printed and passed from hand 10 hand with
almost as much unconcern as the printing and
distribution Of so many handbills, makes the
government employees careless and affords
great facility for dishonesty. We should not
be surprised, therefore, to hear from the inves-
tigatng Congressional committees, or at any
time, Of startling developments.
But apart from any cases Of direct fraud that
may come to light, the vast power of the Sec
rotary Of the Treasury over the finances
must be regarded as dangerous and lead.
ing to evil. No man, however able or
honest, should be trusted 10 the extent he il
He can convert or transfer bonds and securi-
ties by hundreds Of millions and can power
fully influence the markets Of the country. II
disposed he could make q number Of men
rich at any time at the expense Of the gov
eminent or the community, and that without
being subject to the charge Of fraud. We
said NO man ought to have such power, and,
least Of all, Mr.. McCuloch, who has but crude
notions Of national finance and who Is too apt
to be the tool Of spectators. Lot the COM
mittees Of Congress, then, push their investiga-
tons In thorough manner into al the work
ings Of the Treasury Department. They could
not be employed upon a more necessary and
useful labor. Let rs have the etils and inn
PROJECTIONS exposed, so that reform may be
applied when we come to remodel our whole
financial svstem.