The Wheeling daily intelligencer. [volume] (Wheeling, W. Va.) 1865-1903, 1872-01-13
Embezzlement of Public Funds by
Frcedmen's Bureau Officers.
AaNWashingtoh Telegram dated 10th

tIceum6n's bureau OMCefSs
A Washington telegram dated 10th
says:
The Secretary of the Treasury sent to
tue House today some interesting inlor.
nation concerning the suspension OF Gen.
Balloch from his duties of Chief Dis.
bursting officer Of the Freedmeu's Bureau.
1t appears from the correspondence trans.
United that in September It was ascer-
tanned that Balloch had on deposit in the
Treasury the sum of $241 ,356.0l, when
he claimed to have $520,947.G7. General
Howard was called on to explain the
large discrepancy in the account Of his
disbursing officer, and, in letter dated
October Z, heSstated that BalloCh had
been allowed to invest the surplus funds
OF the Bureau in United States securities.
and that he held 100000 in registered
bonds deposited in the Treasury, and $780,
QUO In coupons deposited in Washington
bank. On this letter the Secretary OF War
made an Endorsement, to the effect that,
IN MS opinion, there was not the slightest
doubt as to the improperly Of the tra"-
action. Balloch's own eyrl'-iiatlon was
that he intended f. "ue the money he got
as interest to make good the losses sus.
tanned by officers Of the Bureau by reason
of erroneous payments of bounties and
other claims made by them. He says
that he invested the money with the ap.
proVal Of Treasurer Spinner and Second
Controller Broadhead; and Secretary
Boutwell,, in q letter Of October 4, to Sec
Rotary Belknap, says this statement is
correct as far as the Second Controller is
concerned. Ballooh was relieved from
duty as Disbursing Officer on October 0,
and, at the request OF Secretary Boutwell,,
he was ordered to restate his &C.
counts, debiting himself with the
interest he had received on Bureau
funds invested, and to at once reconvert
such investments into currency. 1t an.
pears that this had been done, and that
therestated accounts will soon be settled,
Gen. Balloch's friends say that the Gov.
eminent will not lose a dollar by his
transactions. ltappcars from the CORES.
pondence that Gen. Howard had full
knowledge OF the use his subordinate was
making Of the Bureau funds, and ap.
proved Of his conduct. The important
point in the affair is that Balloch by his
own acknowledgment, intended TO use
me interest ohN quarter of million Of
Government money W reimburse himsrll
and other Bureau officers Cor Iosscs o"o"'
stoned by their payments Of iosgcJ I vo W"
ers for bounues Of colored soldiers, 'V"'"
OF course Gen. BALLocu had no m0.o
authority and no more moral right TO-
appropriate this interest on tho public
money entrusted to him than he had to
appropriate the principal. Itbclonged to
tho government, not 10 him. To use II
for any purpose not authorized by law
and Tor the benefit Of anybody but the
government, was, in plain English, to,
steal It. Fortunately the Secretary of the
Treasury Is able to compel restitution.
Gen. HowARn, as BALLocu's superior, in
allowing him 10 thus appropriate the
Bureau funds to his private purposes, is
equally culpablc. The presumption is
that there was a ring, tho Second Con.
troller being the third member aI it
This operation adds another shade IN
the cloud that the patent brick (Iowasd
University operation cast over the saint.
illness of Gen. HowARD's reputation. 1t
is to be regretted that the Freedmen's Blu.
reau should be stained by transactions Of
this kind, for its work has been q bene.
hcient one, and in the main, so far as
known, has been honestly done. But il
corruptions exist in that Bureau or else.
where, let them be uncovered. The
spirit Of inquiry and reform is at work in
all directions Honest officials will not
suffer by investigations aud dishonest
ones ought not to be screened.