The daily Argus. (Rock Island, Ill.) 1873-1877, 1875-10-25
From the New York Herald
THE CLEWS EXPOSURE.
Revelations of a Private
Diary.
Opinions Of Mr.. Seward and Secretary
Fish.

Opinions Of Mr.. Seward and Secretary
Fish.
We are permitted to make some ex-
tracts from a gentleman's diary regarding
the most important financial event of our
time. They are extremely interesting, in
view of the investigation now going on in
the Henry Clews bankruptcy proceedings
before Mr. Register Ketchum. We give
them in advance of the publication in an
other form as intended by their author:
LONDON - 1871.
Went to Barings this morning; drew
E; saw Mr.. Sturgis, and was informed
that the financial agency of the United
States had been withdrawn from their
house and had been divided: the agency
for the navy department, the account of
value, going to Messrs. Jay Cooke, McCul-
loch Il Co., and the diplomatic and consul
lar are going to Messrs. Clews, Habicht Il
Go. The Earrings have had this agency
since the foundation of our government
Of course they regret the withdrawal, but
say, with comendable equinanimity, that
they have no claim upon the government
Of the United States for it other than their
long and faithful services They have
been assured by Mr.. Boutwell, that there
was
NO COMPLAINT AGAINST THEM.
The ostensible reason given is that two
American houses haYe been established in
London and on account of their loyalty
deserving of the patronage of the govern
men. and should have this prestige.
Have learned that at the time of the
transfer of naval account to Messrs. Jay
Cooke, McCoulloch q Co. the government
has not yet paid Barings' check for this
amount nor apologized to the Earrings for
taking the contract from them.
MR.. Stewards OPINION.
Called on Mr.. Seward this morning.
Found him in as good health as when /
bid him good-by just before he started
from Auburn to go around the world.
While relating to him the incidents
of my visits to the Earrings yesterday Sir
Henry Holland came in. AS we were mu.
tual friends proceeded in telling what
had occurred. Mr.. Seward, with much
warmth and vigor, denounced the change
and said it would be a great misfortune
to the United States, who would need al
her old aud warm friends to put out any
new loans she might have to make, Mr.
Seward recalled to Sir Henry recollection
confidential letter he had written him, il
1862, in which, among other things, he haC
requested Sir Henry for him to PERSONAL.
thank the Earrings, and especially Mr.
Sturgis, for the manner their house ha,
sustained the United States government
during the darkest Tours CT the war.
Mr.. Seward said that he had been urge,
several times. while he was secretary o
state, to change the agency; and once i
particular, upon charge of want of symp
athy for the North, evidencing the fac
that on Sunday, the day of second Bu
Run. their quarterly account had bee
presented at the state department, claim
ing that there was a balance of $4,000
due them from the United States.
Mr.. Seward said he replied to thes
charge by stating that he knew individual
ly several members Of the house of Bal
ings, knew the loyalty of Mr.. Sturgis {
his native country and then related a
incident, which l jot down from my be.
recollection after the fatigues of the day
"Mr Schuyler, of Schuyler, Hartley
Graham, of New York, was in Londor
authorized to purchase arms for the Uni
ed States government Mr.. Schuyler ha
found large quantity of arms that wei
for sale, but the owners would not sc
them without first receiving payment
cash for them before delivery. The cas-
Mr.. Schuyler had not, What was to |
done2 The agents Of the Confederat,
were also in London and had propose
themselves to purchase these same arm
did not want to pay for them until att,
their delivery in some one of the ports
the Confederacy. Mr. Schuyler, vii
great anxiety, went to Mr.. Sturgis an
made these facts known to him and askC
his advice.
AUTHORITY FOR BILLS OF EXCHANGE.
Mr. Sturgis asked Mr. Schuyler if h
authority to purchase was accompanie
with authority to draw bills Of exchanl
for the purchase money. Mr.. Schuyl
exhibited his authority. Mr.. Sturgis r
piled substantially, Draw your bills Fl
whatever you want to purchase these arm
and our house will cash them for you,
there may be no delay in sending the arm
home to our government
Mr.. Schuyler drew his bills of exchanI
for about eS0O,OO0; the Earrings cashe
them. This, tell you, was in the darke
hour of the war, and when the f50,OC
overdraft upon them presented in Was
ington was still unpaid"
Mr.. Seward then asked, Sir Henry do,
that look like cool and unfriendly act
The people of the United States will SOU
day do that house full justice"
THURsDAY,--,19 1871.
Called upon Mr.--at the Langhau
Found him much better from his trip an
relaxation from the cares of mis- bankir
L IN n