The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1871-09-18

WASHINGTON, Sept 16.-Capt. G.. Fl. Cooper
is ordered to Norfolk Navy Yard on the Both
Michigan on the 30th Chief Engineer Ste
phen d. Hilbert is ordered to duty in charge
stores 10 the engineer department of the Phila-
delph'a Navy Yard. Captain Edward Donal-
son is detailed from Norfolk Navy Yard and
ordered for examination for promotion. Ill. M.
Denniston is detached from the Michigan and
ordered to settle his accounts.
Internal Revenue.
Commissioner Douglass has given instruc-
tons to collectors TO hereafter transmit to the
supervisors of their respective districts copies
of certain of their monthly reports to the inter-
nal revenue department.
Financial.
The receipts of fractional currency for the
week ending to-day, was $598 900. The treas
urer holds in trust as security for national bank
circulation $685., 067 ,450, and for deposits OF
public money 81 $40 100. Internal Revenue
receipts to-day 80 5100S5 Total ior the fiscal
year to date $31 $40, 1876
The bank circulation outstanding at this
date is $780,, 489 245; national gold bank crcu-
latiop, $495, 900; an increase during the week
of $50 600; balances in treasury at close of
business to-day-coin, S95 $685. 1913; currency,
$6,O15, 1856; cert ficates, $50 S4S 800
The Hodge Defaicat,en.
Attempts of the pay department to foist up.
on the tTeasurer'S office the responsibility fer
Hodges detalcation is regarded by the treasury
officials as entirely unwarrantable by he facts.
The pay department claim as paymasters were
required to report their balance weekly to the
treasurer, that the proper comparison of these
receipts at the treasury, with those from the
various depositoTs showing the balances held
by them TO the credit OF dis0ursing officers
would have led to the speedy detection OF any
defacatiou, The treasury officials reply that
the treasurer never assumed the responsibility
for the proper disbursement of fuads ent listed
to officers of the pay department Or released
that department from the responsibility of
keeping all proper checks on officers. Expert
ence soon demonstrated that the reports re-
CURED of paymasters were no protection
against fraud, even in cases of honest officers
The balances reported by them would always
be less than the amount reported by deposiiOrS
by Just the amounts of their Outstanding
checks. The treasury soon ceased to place re-
lance on these reports as means for the de-
lection of fraud and was not always PROMPT in
requiring them to be made when officers tailed
to send Them in; only by which any discrep-
anc es in reports could have been discovered.
Had such reports eeen made it would have
been by comparing them with his reports to the
pay master general. But inasmuch as misap-
propriate6 checks were all drawn from his ac-
counts with the treasurer discrepancies could
have been just as easily discovered by exam
nation of the treasury books as by the pay de-
partment officials, OF by examining HODGES re-
ports to treasury. The most complete refuta.
| ton of the allegations of the pay department Mt
is, however, furnished by the fact that for some
| time gentleman connected with the pay de-
partrnent, who is now engaged in the ipvesti-
| cation Of Hodges accounts, has been in the
habit OF calling on the treasurer's office for the
balances reported to the credit of paymaster,
and has IN several instances, at his request
has been furnished with statements of balances
| held by the treasury to the credit of Colonel
Hodge. The books OF the treasury have al
| ways been open to any examination which the
| pay department might choose to make.
In the second place the pay department al
| leges that the payment by the treasurer eN
checks drawn by paymaster Hodge, payable Il
cash or bearer for large amounts afforded MN
| facilities for improper withdrawal of money
| which he would not have enjoyed of the circu
lar OF the secretary of the treasury of Novem
| Der %, 1869, concerning the disbursement o
| the public money had been complied with
The treasurer officials alege that although
this circular had not been latterly compiled
| with in payment of Hodges checks, yet ha'
it been observed it would have furnished nt
preventive of his speculations. The crcula
does not it is true, permit checks to be draw
as Col. Hodges were, ''to cash to bearer L
does, however, require that except in CERTAIN
specified cases checks drawn by discussing Oh
ficers must be in favor of the person by ha,n'
to whom the payment is to be made, or IN raw
of such person by name or bearer. Had pay
ment been refused on checks drawn payaDe
cash or bearer it would have been perfectly iea
sible for Hodge, under these regulations
have drawn out funds for his dishonest iraus
actions upon checks payable to any hctl'iou
person and bearer. Since therefore the er
fOrcement of the regulations could mol nay
| prevented Hodges fraudulent operations I'll
failure to enforce them, like the failure 10 ca
upon him for reports, is utterly immateriai
fixing the responsibility for his being permltle
to carry on his fraudulent operations so ion
unchecked
The officers of the treasury claim that the
functions in the matter of disbursiDg off1cef
fluids are confined to the safe keeping OF MOI
} eys deposited, and to their payment on gen!
} uine and proper checks and that they are
nowise responsible for the misappropriatlon
funds which have been Withdrawn from the
custody by dlsburng officers, who render !
accounts to them and are not in the slighte
f degree under their control