, 1873-11-05

posltlpu u opJeGL1uuH Ill AAfoA VI cA'aiil"'o
whore no substantial injustice las been dono to
thom.
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JAY C0ogE AND THE GoVERNMENT.
When tho Firat National Bank Of Washington
suspended, it was discovered that tho Govern
mcnt had 100000 or moro on deposit thoro with
out security. It is now stated TINT Jay Cooto L
Co., who Though Horny D. Cookie WAS Prcsidont
Of tho bank) Ind borrowed $900,000 from it,
hnyo now turnol over to tho Government, to &C.
euro 1t against loss, 100000 Of Central Pacific
bonds. I'he object OF this transfer, which
twofold, viz: ~ 70 protect Henry D. Cooke
from prosecution, who, ns an officer or tho First
National Bank, violated tho National Curroucy
act by authorizing Il loan Of moro than 10 per
cent Of the capital to himself aud partnors and
thereby committed poual otTonHo; and (2) to
protect tho officer Of the Government who is
responsible for tic deposit Of public money in
the First National Bank without tho security
required by 1aw. Tho case is ono OF mutual
accommodation. AIr. Horny D. Cooko, o1-Gov-
to escape prosecution II hia firm shall relieve
tho responsible Governments official, likewise
transgressor Of the lnw, by making good tho
Government deposit OF funds. Meanwhile, tho
other creditors OF Jay Cooke d. Co. are asked to
quietly forego their lien upon $780, 900 Of the rs
sets, in order to savo those two individuals from
further embarrassment.
Tho reported transfer Of the Central Pacific
bonds to tho Government ia in direct VIC Ia
ton Of the National Bankruptcy net, which
prohibits preferences Of every nature, and makes
no exception in favor of tho Government.
Mcsara. Jay Cooke & Co. hare prepared q quad
rilateral agreement, which wo publish elsewhere
in full. This agreement 1a intended to provide
for settlement outside Of the Bankrupt law;
and, among other stipulationB, It gives Jay
Cooke & Co. (sec. 9 the right to sottle any Of
the debts by paying, transferring, and delivering
any of tho assets to creditors ut their appraised
value. II this agreement had boon signed
by all tho creditors, instead Of being mere
proposition Us it il now, it would giyo Jay Cooko
&; Co. tie power to turn over to tho Government
the s2o0, 900 Of Central Pacific bonds. But, Us
this s not the case, end a. none Of tho creditors
have yet abandoned their rights under the Bank
rupt Inv, tho transfer is illegal and will not hold.
And, as it is not at all likely that all
the creditors OF Jay Cooke & Co. will sub-
scribe to tile quack plan Of negotiable
certificates Of indebtedness, the Government will
bo tar H. 1,1rf
and take its place among tho othor creditors Of
tho First National Bank, in which case it will
not receive more than SO por cent OF its depoait.
Tho First National Bank of Washington is
located just opposite the Treasury Building.
wlero tho Government funds can always bo hopt
in absolute aafety. The only explanation offered
tbuB fur why money should have boon taken out
of the Treasury md carried across tic street for
deposit is, TINT tho Firat National Bank WIS u
Government depository. The Inv requires, how
over, that no Government funds shall thus bo
deposited without requiring an equal amount OF
United stasos bonds aa security. In this case,
no security whntoyor was tnken. Tho infrac-
ton Of Inv ia go fragrant that 1t calla
authorized tho deposit, whether that Of
acia1 DO President, Secretary, Treasurer, Or
what not. Tho impeachment OF somebody
il demanded ell tic more because the violation
of Inv in thia instance 1s but ono Of largo
number of official acts Of similar sort show.
ing IN uttor contempt for tho restraints i'm
posed by law upon tho misuso Of the public
funds. To permit this to pass nnuoticed along
| with tho other offenaos which have proceeded It,
will bo to give general notioe to the present
Administration and itB SUCCESSORS in oiiico, TINT
all laws regulating tho Trcasury havo been ILL.,
aolu,toly suspended, If, In diroot Vlolntion Of
| law 100000 1aay bo riskod md lost for tue
accommodation Of friend, without ontailing
any penalty for tho infraction, then $2' o,ooo'
or 2o,ooo, 900. or any other anm which the
public ot1lca!s for the time being may desire,
can uo employed in u similar manner.
Louis GAYLORD Clnrls, whose death is announced