Evening star. [volume] (Washington, D.C.) 1854-1972, 1874-01-08
The Freedmen's Bureau Irregular
lilies

| Inc secretary OF war transmitted 10 the
House of Representatives yesterday afternoon
| a further communication in relation TO the al
legged irregularities in the Freedmen's bureau
| by Gen. Howard and Gen. George w. Balloch
memoranda of deficits running from June,
1861, 10 September, 1871, at which time Balloch
was relieved, is presented. These deficits were
At W Washington, New York, Baltimore, Charles
TON, Louisville, st. Louis, Nashville, Memphis
and Mobile, and range IL ON several hundred TO
iorty1three thousand dollars. The Secretary
| says 1t is proper TO state that an examination
similar TO that under which the foregoing was
developed has failed 10 show deficits IN the in
Jiv,du sr ScGoah mt OF Gen; Howard or of Major
EXPLANATIONS OF GENERALS howard AND
| BALLoCH.
On Dece mber 2l a note was addressed to Gen.
Howard, directing him TO arrange for an inter
view between himself, Gen. Bailoch. and the
secretary of War, at the War department, the
I'd. A memorandum OF that interview is given.
Balloch was asked whether he recalled 10 his
fecoilection the investigation made by General
Shrlyer relative TO the S2S0, 900 land Securities
and he replied affirmatively. In answer TO a
question about certain funds which were not ON
deposit with the United States Treasurer, and
Wnether his account at any other time or times
ItPIesehled funds as deposited in the Treasury
"neh IL WAS not 50, Balloch replied that he did
not know.
Mr.. Balloch was then shown the statement of
assolsepancles ana deficits given above, and was
give any explanation, except that tbey were
Occasioned by his reporting as on deposit the
salue Vi treasury certlncates which were in the
hands OF Major Hodge, late paymaster of the
United States army, which were not really paid
Atter the parties had separated from rhe
above interview, General Howard returned to
the secretary of War, and said tn at Balloch had
stated to him that the difference in the report of
the sums deposited must have been occasioneJ
1y the unpaid certificates in Hodges hands
General Howard himself knew nothing of the
matter.
on December q General Howard called at the
war department and handed the Secretary a
raj Rall t,et,.o
said he had examined the retained papers in his
possession, and at the proper time, and before
the proper tribunal, e.would explain the dis
cIepahcles. Ihls seemed TO the Secretary of
W al to be dissemination TO submit the proper
explanation, and he therefore addressed a letter
10 Howard under date of December n. inform
ing hiIa thar tie accounting officers of the Treas
ury and the Treasurer OF the United States were
he proper officers to be called upon for expl4na-
non, and directing Howard to place himself in
communication with the Treasurer aud acc oupt
ing officers, so that all explanations mi ght be
submitted prior to December 81.
ON December 20 Gen. Howard requested
tabular statement OF Mr.. BallOch's deficits and
discrepancies. The Secretary OF War referred
him TO the accounting officers of the Treasury
and on the same date referred the whole mat
ter TO the Attorney General aud the Secretary
of the Treasury for their consider alton.
BY letter o! December 50, the General trans
mltted general statement foe Mr.. Balloch in
partial explanation, in which Ar. Balloon
makes
THE FOLLOWING Abn1ssioSs:.
l. That partial payments were made TO con-
tractors, and the amount of checks given for
those partial payments would be considered as
IN the Treasury until the final settlement was
made. 2. That prior to the bounty cert ficates
as received from the Second Auditor, being
paid by the pay department of the army, the
amounts covered by them were in making up
the account current for each month considered
as In the Treasury. Gen. Balloch says, in this
connection, that the pay department was
always behind in settling the accounts. 3. That
there we're on special deposit with the United
States Treasurer from February, $50, TO Feb e
ruary, lS1l, United States securities costing
S334,e15I and from March, 1871, TO October II,
ioI1 some other securities, costing 1913 ,3T5,
and that these amounts should be added to the
amounts as shown by the books Of the Treasury
during the period mentioned.
These admissions, says the Secretary Of War,
support the truthfulness Of the disclosures
made by the Treasury records and the conflict
with the account rendered by the accounting
officers. From August 81, 1867, to August 81,
1868, Ballocb, it seems, received from the paw
department sos, $50 /, an average Of s279,-
$500 per month. The Secretary of War con-
cludes, from Balloch's own admission as above,
that all the money which he certifies was in the
Treasury was not there. AS to the third admis-
sion, the Secretary says he had no authority
whatever to make an Investment in United
States securities, and the discrepancies we're too
large TO admit of explanation through transfer
drafts. The foregoing, the Secretary says, in
wolves violations of the following acts of Con-
gress, viz: The 39th Article of War; sections I5
and p Of the act of August 6, 1876; 9th Sta
=
OF January II, 1866; 18th Statutes, pages 81
and 6.
REFORMATION ASKED FOR.
Under date OF January . 1874, the Secretary
OF War asked Gen. Howard to give him the fol-
lowing information, which he is to ascertain
from Baloch: l. AS to the specific character of
the certificates and the authority for converting
funds into securities. ?. The object of such
conversion. ). To what object the said funds
we're applied: 4. If they were funded in United
and what was done with the interest. 5. What
increase resulted from the use of the funds
represented by said securities, and what DISPOSE
ton was made OF the increase. 8. Why these
transactions were not referred to when Gen.
Shrlyer was investigating what had become OF
the $3.50 900 in bonds.
On January Balloch replied through Gen.
Howard, and answered: First, that the securI-
ties were what were known as currency skies.
he face value was over SS00000, and the ac
crued interest amounted to S34 SIS. They were
purchased by order OF Gen. Howard, after con-
sultation with Treasury Off Gals. Second, the
object OF the conversion was TO creste a fund
out of which to reimburse double payments
made to the wrong parties or on false identifica-
tons, and to exc out the megra appropriation
for the Freedmen's Bureau. Third, that the
let amount of interest and premium accrued
was $40, ii2.57, which was absorbed bv the refu-
gees and treedmen's fund under the act of June
10, 1866, and which was expended as follows:
For reimbuI sement for dou Bile PAYMENT of bOun
ties, 81 1856; for school houses and asyInms
Sl6 5O25 salaries of agents and CLERKS 81 $50 05
stationery and printing, Sl03 76-total, Sl6,-
It'll. ludl tut llsI OF securities held
rom March TO october, 1861, were the only ones
that General Shriver was authorized to inyesti-
gate and Hfth that he did not refer to the other
securities, because he was not asked about them
The Secretary, in conclusion, says the examina.
ton Is still in progress, and that he will com
municate TO the House any further inform alton
be may obtain on the subject.
CAUCUS NOMINATIONS OF THE MARYLAND
LEGIsLATCRE.-Aftera an all-night session, the
caucus OF the democratic members of the house
OF delegates, at one O'Clock a. M. to-day nomi-
mated Hon Jesse X. Hines, of Kent county, for
speaker. The senate caucus had previously
early IN the evening, nominated Hon. John Lee
Varroll, Qf Howard county, as president of the
senate. The secretary of the senate and chief
clerk Of the house were renominated. Both
houses will no doubt to- day effect their perma-
nent organization on this basis and the gov |
ernor will send in his message, when the bust
ness of the session will begin. The voting for |
United States Senator will commence on the |
10Th instant, but the result Of the caucusing |
last night seems to have effectually settled that
matter in favor of Governor Whyte.-BaH, San. |
The NEW HAMPSHIRE REPUBLICAN STATE |
CONVENTION yesterday nominated Luther |
McCutchins for governor, and adopted reeolu- |
tions declaring fidelity to the republican party; |
demanding the unconditional repeal Of the /
salary act and rt establishment of all salaries,