The New York herald., 1875-10-09
7HE CLEVS EXPOS URE.
How the United States Agency Was
Withdrawn from the BaringS.
REVELATIONS OF A PRIVATE DIARY
Opinions Of Mr.. Seward and
Secretary Fish.

OO~@
We are permitted TO make some extracts from q gen.
teman's diary regarding the most important financial
events Of our time. They extremely inter-
esng in view OF the investigation now going on in the
Henry Clews bankruptcy proceedings before Mr. Regis
trar Ketchum. We give them in advance of the
publication in another form as intended by their
author
Went TO Barings' this morning; drew E; saw Mr..
Slurgs and was informed that tho 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Of the United States had been Withdrawn from their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, McCuoch 4 Co, and the diplomatic and con-
sular are going to Messrs Clews Habicht & Co. Tho
Barings have had this agency since the ndaton OF
government OF course they regret its withdrawal
bat cay, with commendabe equanimity, that they have
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
NO COMPLAINT AGAINST THRh.
The ostensible reason given Is that two American
houses have been established In London, and
OF their loyalty deserving of the patronage Of tho
government and should have this prestige
Have learned that the OF the transfer of naval
account TO Messrs Jay Cooke, hccuoch Co, the gov
not yet paid Barngs check this amount nor apollo
gized TO Barings for taking the contract from them.
MR. sRwARD,s OPINION
Called on Mr.. Seward this morning. Found him in
as good health as when bid him goodby Just before
he started from Auburn to go around the world. .
While relating to him the incidents OF my visit to the
Barings yesterday Sir Henry Holland came in As wo
were mutual friends ! proceeded telling what had
occurred Mr. Seward with much warmth and vigor,
denounced tho change, and said it would be great
misfortune the United States who would need all her
old and warm friends 70 put out any new loans she
might have to make Mr.. Seward recalled TO Sir Hen
ry's recollection confidential letter he had written
him, in 1862 in which, among other things he had
quested Sir Henry for him TO personally thank tho
Barngs and especially Mr. sturgis for the manner their
house had sustained the United States government dur
ing the darkest hours OF the
Mr. Seward said that he had been urged several
tnea while he Was Secretary of State, to change the
agency and once in particular, upon charge of want
OF sympathy for the North, evdencng the fact that
Sunday, the day of second Bull Run, their quarterly
account had boeu presented al the State Department.
claiming that there balance OF ESQ 900 due them
from the United States.
Mr Seward said he replied to these charges by stat
ing that he knew individually several members Of tho
house Of Barngs, knew the loyalty of Mr., Sturgs to
his native country and then related incident which
jot down from my best recollection after tue iatgucs
.Afr SCHUYLER ofSchuyier Hartley h Graham of New
York in London, authorized to purchase arms for
the United States government Mr. Schuyler had ounda
large quantity OF that for sale the owners
would sell them without first receiving payment in
cash for them before delivery The cash Mi Schuyler
had What TO be dopeS The agents of tho Con-
federates also in London and had proposed them
selves TO purchase these same arms, but did not
70 pay tor them until after their delivery in some ont
of tho ports of the Confederacy Mr. Schuyler, with
great anxiety went to Mr. Stugis and made these fact
known TO him and asked his advice.
AUTHORITY BxcHAHGE.
'Mr Sturgis asked Mr.. Schuyler If has authority to
purchase was accompanied with authority 10 draw
bills of exchange for the purchase money. Mr.. Schuy
Ter exhibited his authority Mr.. Sturgis replied sub
santialy, Draw your bills for whatever you want 70
purchase these arms and our house will cash them fol
you, so there may be no delay in sending the armi
home 70 our government
Mr. Schuyler drew his bills OF exchange for about
8soo oooj the Barring: cashed them This, tell you
in the darkest hour OF the war, and when the
ESQ 600 overdra upon them presented in Washington
was still unpaid" .ra
Ike q cool and unfriendly actS The people Of the
United States viii some day do that house full justice"
SC THURSDAY. -- 1871
Called upon Mr. - at the IAngham. Found him
much better from his trip and relaxation from the care
Of his banking house He came from Paris day befor,
yesterday. Had seen many OF my friends there. Had
dined with Mr. washburne. Mr.. Seward Lord Lyons
and other notables were present
While at dinner Mr. Seward asked Mr Washburne
through what agency he drew his salary. Mr. Wash
Of London, AGENTS Of the State Department Mr.
Seward replied "Habicht-Habcht-wh is Ha
bichtV Mr. Washburne replied that MI. Habicht hao
BEEN he believed Consul of Sweden in New York. Mr.
Seward said, "oh, that Why when !
cause we caught him engaged in blockade running" "
THE ARLINGTON, Feb :, 1872
Called on tho President and several members of the
Cabinet Told the President that the Ala.
bama Treaty had nauguraed an era OF good feeling in
Told Mr.. Boutwell, that the withdrawal OF the fnan.
cia agency of the United States from the Barngs would
be highly preudicia TO the interest OF the government
In relation TO loans and particularly in purchasing
supplies in foreign countries for our navy, and gave
him this illustration
The Fleet paymaster OF Asiatic squadron wanting
some money China drew hts bills Of exchange the
Barngs agents Of the United States six months
and had them cashed II reasonable rates. Tho bill1
were sent 70 London for acceptance They arrived
there after the agency had been withdrawn from the
Barings, and taken 70 Messrs Jay Cooke, McCul
loch Co for acceptance and accepted by that
house At this time the bills OF Messrs Barring
Brothers Co selling At three aud half per
cen. discount The holders Of the acceptanccs Of
Messrs Jay Cooke, McCuloch Co. undertook TO make
sale of them and offered them the Bank OF England
and to banks without purchasers and at last
through broker Ihoard they sold TO Messrs Jay
Cooke, McCuoch a Co. at about ninc per cent told
foreign countries who will be more careful in their
future purchases Of United States paymascrs drafu
o London.
Mr. Boutwell, spoke terms Of great praise OF tho
Messrs. Barings who had for eighty years been
the financial agents OF the United States government
ferrcd from hts tone and manner that the Secretary OF
the Navy had suggested the names Of the bankers
through whom its foreign payments were 70 be made
explained TO Mr.. Fish some OF the embarrassmcnts
10 the credit OF tho Qntcd States that had resulted
from the withdrawal q tho agency from the Earrings,
particularly In need OF all our old friends
70 float loans In Europe While hesSrs jay Cooke,
McCullooh Co and Mossra CLOVIS hapicht 20.
had good credit in tho United States their houses were
wholly unknown ia England Mr., Fish deprecated The
change but snld II was not OF his making
PUBLIC SCHOOL SCANDALS