Evening star. [volume] (Washington, D.C.) 1854-1972, 1868-11-13
Jacob Thompson and the Indian Trust
Funds.

Statements have been afioat lately in the
pnohc press charging Jacob Thompson, .cre-
ta-y of the Interior under President Buchanan,
with completely in the Bailey defilcation of
the Indian Trust Funds in 1860. Now, NJ
Thompson, doubtless, has abundant political
sins to answer for, but it Is due to him to say
that his official duties were performed effic-
emily and honOrably. The thorough Investiga-
tion following upon the discovery of the
Bailey deialca ion showed that MI Thomson
was entirely innocent of any completely in the
transaction. The following which We tind in
the New York Express sets forth the facts in the
case:
Jacob Thompson. Secretary of the Interior
under Il ident Bucha nan. has written letter
from Montreal, defending himself against
charges that he was a defiuiter with gard to
certain Indian trust funds. Mr.. Thompson
says:
"The transaction from which those damaging
charges against President Buchanan's Secre-
taries arise is this:-ln the year ls6O one Go.
daTd Bailey was a disbursing clerk in the In
terror Department, and thus became the custo-
dian OF the Indian trust fund. 1t consisted of
bonds OF the United States aud of several Of the
States, and amounted to 1896, 2i1. He had the
key of the safe in which these securities were
kept, and for more than three years discharged
bIs trust with unimpeacha integrity and
great acceptableness to the head of the Depart
ment: In the summer and fall of 1850, without
any authority from the Secretary Of the Inte-
person connected with the q overnment, he took
from the safe in his custody bonds to the
amount of SS70,0OO and delivered them into the
hands of one William I'll. Russell, taking his
receipt for the same, and he took from the said
Russell, as collateral security, for the return of
the bonds, drafts drawn by Messrs. Russell,
Majors Waddell, large Government con-
tractors, on the War Department, and accepted
by the Secretary of War These accepted drafts
elso amounted to SS50,O0O. This Is the whole
case
MIR. Thompson publishes a letter from Bailey,
dated December I, 1860, in which the latter ac.
know ledses these facts, and exonerates the
former from even the shadow Of any com.
plicity in the transaction. A committee of
Congress, appointed after wards to in yestigate
tue matter, and composed of men opposed,
with but one exception, 10 the admin lstration
entirely exonerated Mr.. Thompson. This gen.
III man also says of the deld Secretary Floyd
"His accepting the drafts Of Messrs Russell
MAYORS " Waddeli, and allowing them to he
thrown upon the market, was unqe.tiopably a
grave administrative error, whatever NAV
have been his motives. But the COMMITTEES
failed TO find, after the most dIlligent search in
this direction, any evidence that had ANYTHING
whatever TO do with Bailey's trans action"
As proof that Mr.. Thompson administered
the affairs Of the Department OF the Interior
capably as well as honorably, he cites the facts
that from his subOr dinates-
-"ihere Were taken. Mr. Holt to be made Post
master General; Governor Thomas 10 he made
Secretary of the Treasury, and after rds
Senator Of the United States d. j,rrs; Colonel
Cummings to be made Governor Of Utah and
General Denver TO be made Governor of Kan.
sas. both in the times OF greatest difficulty; Mr.
Hendricks 10 be made a Senator and after.
wards to become a most prominent candidate
TOT me Presidency OF the L Ukited States; Gen.
eral Meigs TO be made Quartermaster General
OF The Federal army, and Mr.. Hoke - become a
distir nished general IN the Southern army:
and after my withdrawal my chief clerk. Mr.
Kelly, became the acting Secretary of the
INTERIOR