The daily Argus. (Rock Island, Ill.) 1873-1877, 1874-02-26
FRAUDS IN THE P. O, DEPARTMENT.

The enormous frauds upon the Govern
ment which have been perpetrated IN the
Post Office Department under this Ad-
ministration by means of what is known
as the straw-bid system of awarding con-
tracts for mail service will go Tar to ex-
plain the great increase in the expendl-
lures of this department since CresweL
has been at its head. The Washington
correspondent of the Boston Globe, an
Administration journal, gives an example OF
the Postmaster Generals contracts AFFORD
ing striking illustration of the straw-bid
system In 1869 the department adver-
tised for proposals to carry the mail on
route No. 1903 from July /, 1870. to
June 30. 1874, The service was to carry
the mails from Boise City by way of Silver
CITY and Orghee to Winnemucca, $50
miles and back, six times a week. Bids
were put in aud the contract was awarded
A. III. Boomer at 80, 996 per annum. Now,
Boomer was man of straw, but giving
him the contract would leave the Post
master General at liberty to reject genu-
inc bidders offering to do the service at
reasonable rates, provided their bids we're
even one dollar higher than his fictitious
one. OF course Boomer failed to fulfil
his contract and then the Postmaster
General was enabled to contract with
whom he chose, paying whatever rates he
pleased, without violating the requirements
of the law. In this instance, in July,
1870, he made q contract with Fuller
Smalley Il Barlow for service three times
week at the rate of $4,000 per annum.
In Nav, 1871. the Postmaster General or
dered four additional trips per week at
$44, 900 per annum, making daily service
at total cost of ST. 700 per annum. Sill
yer City is the only Office supplied over
route No Is, 703 which is not on other
routes, 80 that the contract was virtually
for supplying that one Office with its mail
matter By the censue of lS70it appears
that the population Of Silver City and dis
trict was lap consequently the the con-
tractor for delivering the mails gets paid
at the rate of over fifty dollars for every
man, woman, and child living in the dis
trict in which the Office is situated.
rs the country prepared for that operation: 1.-THE
resumption of specie payments Admitting that
has got to go through the process at some future
time, should IL not be much more gradualy Should
" not be distributed through two or three years.
Ten per cent increase in the difficulty of paying
debts, 10 per cent. enhancement of the value Of
debts In twelve months is more than twice the
average profits of business In this country, taking
all kinds of business and making an average
senator Morton OHWe Currency.
In whose interest is Senator Morton
speaking? Does he speak in the interest
Of the 40,000,O00 Of consumers in this coun
try? IF he does he should remember that
10 per cent. enhancement in the value Of
the currency means an increase, an add
ton Of 10 per cent. to the purchasing pow,
er of every dollar which this great body Of
consumers has to expend Every dollar
spent, from the laborer's wages to the cap
italist's interest, will buy that much more
than it now buys. Is that an injury to the
consumer or an advantage? Does Senator
Morton speak in the interest Of the 6,000,-
600 Of producers on the farms of this coun-
try? If he does he should remember that
they have to sell at gold rates but must
buy at currency rates, and 10 per cent
added to the value of the currency
means 10 per cent added to the
exchangeable value of every dol
lars worth of products which this suf
fering class puts upon the market Ii
either case there is saving in prompt actor
and waste in delay.-N J. World