The Somerset herald. [volume] (Somerset, Pa.) 1870-1936, 1872-08-07

) number of passengers aad thirty-tw
soldiers, came alongside, and lashe
herself to the Parsons An attat
was at once resolved upon. TT
passengers and soldiers were soc
made prisoners, and the'b delivc
ed up to our men. The soldiers wei
regularly paroled. The passcngel
were left on the island, having give
their promise not to leave for twent,
four hours, and the boat was towe
out into the lake and sunk
The Parsons was then started d
rcctly for the Bay ofIiSandusky.-
Here the men, for certain reasons nj
altogether satisfactory, but possibl
fortunately, refused to make the a
tack on the Michigan beaii -returI
ed and landed at Sandwich, c. W
and the men scattered through tn
country. Most of them, have returI
ed to the Confederate States, but
few days since Acting Master Bennc
G. Burley was arrested, and the tria
is now going on for his delivery VI
der the extradition treaty. If W
had Coles, Beal's, or his own con
mission, l should not feae the result
As it is they will have to, prove tina
they acted under my order, and tina
will in all probability secure his re
lease, but it may lead to my expulsion
from the Provinces. Ataeast / hav
| it from a reliable source that this las
proposition has been pressed upol
the Canadian authorities, and the,
have considered it. Should tn
course of events take this direction
unadvised by you, 1 shall consider j
my duty TO remain where | am ant
abide the issue. should prefer, if i
be possible, to have your views OF
the subject. Capt. Cole is still :
prisoner on Johnson's Island
In obedience to your suggestion, a
far as it was practical, soon after my
arrival here | urged the people of tn,
North to convert their paper money
into gold and withdraw it from the
market. | am satisfied this policy
was adopted and carried into effect
TO some extent, but how extensively
| am unable to state. What effect il
had on the gold market it is impossi
BILE TO estimate; but certain it is, that
gold continued ia appreciate until il
went to 900 The high price may
have tempted many to change their
policy, because gold soon afterwards
fell in the market to 100, When il
was $50, and expectation Of gold was
so small that there appeared to be
little demand for it. Mr. John Por-
terfeld, formerly a banker of Nash
vile, bu. now resident of Montreal
was furnished with 100000 and in
structed to proceed to New York TO
carry out a financial policy. of his
own conception, which consisted in
the purchase of gold ana exporting
the same, selling it for sterling bills
of exchange, and then converting his
exchange into gold. This process in
volved certain loss, the cost OF trans
shipment. .-
He was instructed by Mr. Clay and
myself to go on with his policy until
he had expended S25, 900, with which
he supposed he would ship directly
So, ,00O,O00 and induce others to ship
much more; and then if the effect
upon the gold market was not very
perceptible, he was TO desist and re-
turn to Canada and restore the mon
ey unexpcnded. BY his last report
he had caused the shipment of more
than s., 900, 900, at an expense of less
than $40, 600, but it seems that Mr.
Lyons, who had been a former part
ner of Mr.. Porterield, was arrested
by General Butler on the ground that
he was exporting gold, and although
Mr. Lyons had no connection with
Mr.. Porterfeld in his transactions,
yet he thought it prudent to return to
Canada, and while he retains the un-
expended balance of the $500 to
carry out his instructions, he has re-
stored $4,000. / must confess that
the first shipment had a marked effect
on the market. | am inclined to the
belief this theory will work great
damage in the Federal finances if
vigorously followed up, and if ITO un-
toward circumstances should interfere
with the operation.
Soon after l reached Canada a Mr..
Minor Major visited me, and repre-
sented himself as an accredited agent
from the Confederate States to de-
stroy steamboats, on the Mississippi
river, and that his operations were
for want of means. | ad-
ganced to him 5000 in federal curren-.
cy. and soon after several boats were
burned in st. Louis, involving an i'm
nense loss of property to the enemy.
He became suspected, as he represen-
ed to me of being the author of this
burning, and from that time both he
md his men have been hiding, and
consequently have done nothing
has been advanced to Mr..
churchill, of Cincinnati, to organize
/ corps for the purpose of incendiar-
SIN in that city. | consider him
rue man, and although as yet he has
Elected but little, | am in constant
of hearing Of effective
work in that quarter.
Previous to the arrival of Lieuten.
mt Colonel Martin, Lieutenant
Headley brought an unsigned letter
rom you. All the different places
where our prisoners are-Camp Dou- !
,las, Rock Island, Camp Morton,
camp Chase, and Elmira-had been
thoroughly examined, and the conclu- !
ion was forced upon us that all efforts /
o release them without an outside !
would bring disaster
lpon the prisoners and result in no
rood All projects of that sort were
4bandoned, except that at Camp Dou-
,las, where Capt Hines still believed
he could affect their release. We
'ielded to his frmness, zeal and per-
istence, and his plans We're plausi-
lie; but treachery defeated him he
ore his well laid schemes were de-
'eloped. .'i
Having nothing else on hand Col.
dartin expressed wish to organize
corps to burn New York city. He
vas allowed to do SO, and most dar-
ng attempt was made to fire that
itv hut their reliance ON the Groot