The weekly Oskaloosa herald. [volume] (Oskaloosa, Iowa) 1855-1885, 1872-08-08

take the steamer. Should they cap
ture the steamer, cannon shot sen
through the officers quarters on John
sons island was to signify to tn,
prisoners that the hour for their re
lease had come. Should they tax,
the island, boats were to be impro
Vised, and Sandusky was to be at
tackled. If taken, the prisoners were
to be mounted and make for Cleye
land, the boats cooperating, and
from Cleveland, the prisoners were
to make Wheeling, thence to Vir
ginia. The key to the whole move
ment was the capture of the Michi
gan. On the evening of the 10th, by
some treachery, Cole was arrested
and the messenger, who was to NEE,
Acting Master Beall at Kelly's
Island, did not reach him.
SEIZURE OF THE ISLAND QUEEN.
Disappointed, but nothing daunt.
ed, Acting Master Beall, having pos.
session of the Philo Parsons, pas.
senger steamer running from Detroit
to Sandusky, he went on his way to-
ward Johnson's Island. Having land.
ed at Middle Bar Island to secure a
supply of wood, the steamer, Island
Queen, with large number of pas.
sengers and thirty-two soldiers, came
up alongside and dashed herself to
the Parsons. An attack was at once
resolved upon. The passengers and
soldiers were soon made prisoners
and the boat delivered up to our
men. The soldiers were regularly
paroled. The passengers were left
on the Island, having given their
promise not to leave for twenty-fouI
hours. and the boat was towed out
into the lake and sunk. .as $50 p
The persons then started directly
for the Bay Of Sandusky. Here the
men, for certain reasons not alto.
gether satisfactory, but possibly
Fortunately, refused to make
the attack on the Michigan. Beall
returned and landed at Sandwich.
G. w., and the men scattered thro
the country. Most of them returned
to the Confederate States but few
days since Acting Master Bennett S.
Burley was arrested, and the trial If
now going on for his delivery under
the extradition treaty. If we had
Coles, Bealls, or his own commits
sion, should not fear the result. AT
it is, they will have to prove that
they acted under my order, and that
will in all probability secure his re-
lease, but it may lead to my expul
sion from the provinces. At least
have il from reliable source that
this last proposition has been pressed
upon the Canadian authorities, and
they have considered it. Should
the course of events take this direc
ton, unadvised by you, / shall con
slider it my duty to remain where
am, and abide the issue. l shoulo
prefer if it be possible, to have YOU
views on the subject. Capt. Cole il
still prisoner on Johnson's island
in obedience to your suggestion, al
far as it was possible.
A FINANCIAL SCHEME. 10
Soon after the arrival here, l urged
the people in the north to CONVEX
their paper money into gold ant
withdraw it from the market. an
satisfied this policy was. adopted anc
carried into effect to some extent
but how extensively l am unable te
say. What effect it had on the gole
market it is impossible to estimate
but certain it is that gold began t.
appreciate until it went to 290. Thu
high price may have tempted man.
to change their policy, because al
terward gold fell in the market tt
$50. When it was about $50, an(
expectation of gold was so small tina
there appeared to be little or no de
mand for it, Mr.. John Potterfeld
formerly resident of Nashville, bu
now a resident of Montreal, was fur
nished with 100000, and instructed
to proceed to New York and carry
out financial policy of his own con
ception, which consisted in the pur
chase of gold and exporting thu
same, selling it for sterling bills O
exchange, and then again converting
his exchange into gold. This pro
cess involved a certain loss-the COS
of transhipment. He was instructed
by Mr.. Clay and myself to 60 OF
with his policy until he had expend
ed $25, 900, with which he supposed
he would ship directly $4,000, 900
and induce others to ship much
more, AMI then, if the effect on the
gold market was not very perceptl
Bile, he has to desist and return tc
Canada, and return the money unex
pended. By the last report he had
caused the shipment of more thar
100000, at an expense of less
than $4,000 but it seems that q
Mr.. Lyon, who had been former
partner of Mr.. Potterfeld, was ar
rested by Gen. Butler on the ground
that he was exporting gold, and, al
though Mr.. Lyon had no connection
with Mr.. Potterfield in his transac
ton, yet he thought it prudent to re
turn to Canada, and, while he retains
the unexpended balance of the $25,
900 to carry out his instructions, hi
has restored $4,000. I must con
TESS that the first shipment had
marked effect on the market. l an
inclined to the opinion that this the
DRY will work great damage and dis
trust in the federal finances ifvigor
ously followed up, and if no unto
ward circumstances should interfer'
with the operation.
STEAMBOAT INCENDIARIsM.
Soon after reached Canada, Mr.
Minor Major visited me and repre-
sented himself as an accredited agen
of the Confederate States to destro.
steamboats, on the Mississippi river
and that his operations were sus
pended for a want of funds. l ad
vanced to him 5000 in Federal cur
rency, and soon after several boat
were burned at St. Louis, involving
an immense loss of property to thu
enemy. He became suspected, a.
he represented to me, of being thu
author of this burning, and his mel
have been in hiding, and consequent
| ly have done nothing. Money ha
been advanced to Mr.. Churchill, O
Cincinnati, to organize a corps To-
the purpose of incendiarism in tina
CITY. l consider him a true man
and although as yet he has effected
but little, am in constant expecta
ton of hearing of effective work il
that quarter.