The New York herald., 1876-03-02
Serious Accusations Against tht
Secretary of War.
HIS IMMEDIATE RESIGNATION PROBABLE
Preparations for the Substitution Of Silver fOT
Fractional Currency.
A MISCHIEvOUS PURPOSE EXPOSED.
FROM OUR SPECIAL CORRESPONDENT.

WASHINGTON, March 2, 1870.
THE SECRETARY OF WAR AND THE lost TRADER
sHRs-HE BREAKS DOWN BEFORE THE CON-
SnTrEE-HIs RESIGNATION EXPECTED To-
DAY.
Secretary Bclknap will probably offer his resignation
tomorrow. Discoveries have been made by the Cly
mer investigating committee which OF such a
ture make his remaining in the Cabinet mpossi
bic. The committee still in session. and IL is
understood, are preparing statement which will be
o1hcially and publicly male to tho House, probably
tomorrow The transactions which have been brought
to light of serious that the committee
have been extremely close about them
Mr. Belknap called before the committee to-day,
and 1t is understood that the proofs against him
OF such nature tha, he broke down and gave up at
snce The discoveries as understood involve him in
transactions concerning post tradershps
Tho Ciymer investigating Committee held three
meetings to-day, tho nrst O'Clock the morning,
tho second three the last this evening" which is
still in session.
Secretary Belknsp summoned before the earlier
meeting where the facts discovered were revealed to
him. They were, II Is said, of such a nature
and with such proofs that he
stood and the peculiar nature OF the charges
and tho persons involved, besides himself, forced him
TO plead for mercy, and II possible, secrecy Re-
ga.ding others than himself the facts however
Of kind to be concealed and the committee it is
dcrstood only promised secrecy until they should have
prepared their statement to lay before the House.
Az the afternoon meeting Mr.. Bclknap again
present and again. 1t is understood pleaded for delay
The prolonged meeting OF the committee this evening
is probably TO put the shape for prescnta-
tion to tho House of Representatives tomorrow.
Later.-The War Department Investigating Commit
tee still in session half past twelve O'CLOCK pre-
pairing their report for tomorrow, which will make
sensation throughout the country. The republican
members OF the committee concur with the democrats
in the main facts aud in tho conclusion that
II is necessary for Mr.. Bclknap to retire
once. The facts understood TO concern
the salo OF post tradcrshps to involve other
bers OF his family besides himself
The report when presented will make very great
sensation Wild rumors flying about the streets at
this late hour concerning the developments which are
to be made Tho committee have been extremely ret-
cent but tho case is said, on good authority TO be
very bad.
THE SUBSTITUTION OF SILVER FOR FRACTIONAL
cURRENcY-EcoNoMIcAL CALCULATIONS OF
THE coMMITTEE-THE ABUNDANCE OF SILL
YER AND A MIscHIEvoUs PROPOSITION BAsKD
ON IT.
The Secretary Of the Treasury and the Appropria-
Committee have substantially agreed that It is
prudent begin tho of silver place tho
paper fractional currency and the former will begin
proper bill is passed by Congress. He has
$l2 900, 600 OF silver coined and 81 900 900 in
bullion hand Tho Mint coin $4,000, 900
month, and he has OF course, authority under the
Resumption act GO buying bullion for four and
half per bonds II the Mint works. full tlme no
have $40 coo, 900 Of silver change coined by the
3oth OF June but according to the estimates OF the
fractional currency for exchange redemption, as
they call H. between and the Both OF June Sothat
tho natural rate OF return OF currency bo
accelerated he could very safely begin give silver
for mutilatcd currency at any time.
The calculation Is that long gold remains below
100 the SILVER coin will remain IN circulation. Under
these circumstances tho committee show the following
figures to tho slightly superior economy OF using
silver rather than paper fractional currency We
have So, oOo 900 OF fractional currency anoat.
These petty notes SAID to less than a
year before they sent in to be exchanged
for new and it costs the considerable sum Of ST. 40 746
per annum to reproduce them, which Is, the commit
tee say, an annual charge But the bullion contained
in $3I 900, 900 silver would require a sao Of
$31, Oso, 600 bonds, the interest charge on which
would be 81, sos, 800 The coinage OF the whole
amount will cost $555, 900 but the silver CONS
will last my years, tho Director OF the Stint
Gays, and this charge must be divided
that period, and will thus to,
say $4,000 year-that Is to say, the Treasury VIII
save nearly 500 900 year by substituting silver for
paper The economy not great, but 1t is something
get part of past duo obligation of the way
The new silver is TO DO legal tender for under
s., and there Is a proposition, sound enough, and
which may be ADOPTED; to abolish and two dollar
bills and place tho silver in their places also.
which is very mschievous, and ought exposed at
once IL is make these silver legal tender for
sums up 500 Several circumstances have recently
happened calculated TO permanently dcprcciate tho
valuo OF silvcr compared with gold. The immense and
continued productvencss OF the Comstock lode and the
constant and rapid increase in the silver product OF
Colorado, whence there reports just now
OF the development OF a silver vein as rich
as the Comstock, come at time when
the German Empire Is engaged In dcmonctzhg silver
and thus throwing prOdigIous out Of and de-
mand coin. Tho coincidence OF these events begins
20 kind OF panic in the silver market In Cali
lorna silver has fallen until snopkccpcrs have pro-
tested against It's overabundancc In India where tho
rupee has been the money OF account there arc com
plants Of its fall in value and h is proposed intro
duce gold coinage.
Il is not unnatural that the producers OF silver in
this country should take alarm at the threatened gut
strange that they should conceive project which
would help them Tor tmc by forcing the use OF i'm.
quantities Of silver upon the people Of this
country, TO make silver n legal tender up to fIO0
Among great population as ours this would be a
very serious wrong and calamity. II would be simply
a new kind OF imitation, and put har
mony with tho general mercantile world II this pro-
jcct comes up II will be vigorously opposed
THE CANAL BOARD