The New York herald., 1871-09-18
WASHINGTON, Sept. 10, 1871.

WASHINGTON, Sept. 16, 1871.
Not half the facts have yet been given TO the pub
lie IN relation to the Hodge defalcaton. When all is
known we shall have series of striking Illustrations
OF Secretary Boutwells mismanagement of the Trea-
sury Department. Paymaster Hodge, it must be
remembered, is, though q regular army o1lcer and
liable to court martial trial for any violation OF law
also disbursing olcer. He is governed in his dis
bursements mainly by the rules and regulations OF
THE TREASURY DEPARTMENT.
II is from the Treasury Department that Paymaster
Hodge received the government money and under
the rules, regulations and form OF stating accounts
of the Treasury Department that he disbursed 1t.
1t was to the Treasury Department that he sent his
accounts for examination and settlement, and,
finally it was by the six years. delay Of the Treasury
Department in taking up accounts for final seotle-
ment thai he was enabled to operate so long with.
out detection.
MR.. +. B. FRENCH, SECOND AUDITOR
OF the Treasury Department, Is the accounting
officer to whom all paymasters' accounts are
sent for examination and settlement. 1t Is the
Second Auditors business to audit all paymas-
ters' accounts. Such disbursements as he nnds
have been made according to law he allows, while
fraudulent or illegal payments he suspends and
charges against the paymaster. Previous to 1861
the clerical iorce of The Second Auditors Office
numbered about twenty. During the rebellion 1t
was increased to nearly five hundred ana a6 the
present time nearly three hundred clerks are EN-
ployed. Congress has indeed been liberal, but new
ertheless paymaslers' accounts lie i'll the Second
Auditors pigeon holes
FROM THREE TO FIVE YEARS
before being taken up for examination and settle.
ment. In fact, the papers lie rotting IN the pigeon
holes average of nearly four years before be-
ing touched. How many million dollars of defalca-
ton the examination OF these old accounts VIII dis.
close time Will only show. Paymasters know very
well that their accounts will not DC examined at
the Treasury Department until four or five
gears after they are rendered. This is
the greatest temptation to defaloatlon Any
one dishonesty disposed is certain OF three
or four years time to make his defacation
good by speculation before his accounts are eX.
amined. II all accounts were examined as soon as
rendered the temptal on would be nothing in CON-
parison 10 what it is under the present system OF
prOcrastnation.
PAYMASTER HODGES DEFALCATION
of nearly half million dollars, though extending
through a period OF years. was never known at the
Treasury Department until he confessed II. His
regular account has been settled only up to March
Is, 1857. His transactions during the last four and
half years vet remain to be examined. He
admits II dealcation OF S450000. How much the
and u half years OF uneXamlned and unsettled ac-
counts no one knows Secretary Boutwell, and his
Auditor OF Paymasters' Accounts are both certainly
duty.
SLOW, BUT NOT SURE
Some time III the month OF March last in the final
settlement Of Paymasler Webb's account for 1865,
the question OF the genumeneSs OF receipt or
August 10, 1865, Tor $4,000, III favor OF Hodge. was
raised. Alter more than five years. delay an in
vestiga'iOn, extending through period or about
SIX months, was had. and II was finally decided to
be a forgery, though even now IL rs not so admtted
oy Major Hodges friends. The receipt in question
had been file among MAJOR Hodges other
vouchers IN the Second Auditors Office awaiting
examination and settlement since 1865. Alter five
years ana a half delay, during winch time the de-
taulter was pundeling the government, IL was
1nay decided to be forgery, and the arrest and
Imprisonment Of Hodge and his confession Of
1ealcation of S450,00J extending through period
of years, followed rs matter OF course
IL the second Auditor OF the Treasury Depart
his once Iive and hall years ago and had them
settled, the loss IN all likelihood would have been
had so much time to operate, the government VIII
be lucky II II gets OF with the loss OF milton dol
nSce 1t a settlement m an
larry Boutwell, IS away electloneering, Assistant
secretary Richardson is IN Europe syndicating,
Treasurer spinner Is travelling with his retnuc,
MIR. +. b. French, Auditor OF Paymasters' Ac-
counts has been absent from his post nearly two
months; so 1t is impossible TO state wnen anything
SECRETARY BoUTwELL's OPPORTUNITY.
When secretary Boutwell, first assumed control OF
The treasury Department he knew very well that his
Auditor OF Paymasters Accounts was about four
years Dehindhand on that class OF work. some ac-
counts were brought up nearly 10 date and some
were nearly six years behind II is safe to that
taken altogether, the paymasters accounts were,
average, four years behindhand lie knew II
more help necessary Congress would furnish 1t
without a word. He knew that more money could
pe saved 10 the treasury by promptly setting up
these old accounts ihan by dozen syndlcations Of
the puDlic debt. lie knew that Mr.. French, who had
been at the mead at the Second AUDITORS ohce
since the commencement of President Lin.
coins first tenn, was good-natured sort of
man, but wholly unfit for the position
lie knew that vouchers of payments OF hundreds
upon hundreds or millions oil dollars mad been lying
In the Treasury Department Tor years and
years without examination. lie knew he had
the power TO have them all settled up TO date within
twelve months time. But the accounts are never
theiess nearly as FAR behindhand now as when Mr.
Boutwell, entered the oIllce
THE QUESTION.
What influences prevented the speedy examina-
ton and settlement SO lmperatlvely demanded uy
the best men and best interests OF our countryS
Mr.. goutwels passion, IL he has one is the rapid
payment OF tile pubic deot, at all hazards aud sc
whatever cost. lie ought to have made an exam
Ination OF old accounts even such dealcatloas
should Increase the public debt ana offset his reduc-
ton 10 certain extent. Did he Gar that
the discovery OF deiacations III the Treasury
accounts would inJure hs chances Tor the
Presidency the deavr 1t Is safe to assume
that the parties operating with the half million dol
lars, procured through poor hodges meekneSS were
there are any more Wall street operators using
government money Obtained Uom delaultlng pay
masters they VIII certainly be UNANIMOUSLY IN iavor
" '''' EXTENT OF DEFALcArIoNs.
Unless Secretary Boutwell, is previously impeached
by Congress- or suspended by President Grant, we
shall not discover the extent of the existing dea-
cations before 1879, when the accounts VIII lie
reached II the work goes on at the present rate.
second Auditor French is rom Name, and, as q
matter oil course, Is strong Boutwell, man we
cannot have new Auditor OF Paymasters Accounts
unti, the President Congress gives US another
and better Secretary OF the Treasury. Let us nave
action.
sUOnKING ocCrRRENCE IN NEWARK