Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1876-04-07
The Latest Developments from Wash
ingt0n-Where is this to End?

dent and ali others, and after showing
how injustice was done to the fame of
Mcclellan, says:
We have SO hearty sense of respect
for fair play in everything, and espe-
cialIy in our politics, that we have
preferred to encourage this confidence
in Grant, his men and measures, to
joining in the hue and cry with
which he has been pursued ever since
he came into power, and with which,
in the license of our modern politics,
we generally pursue any admins
tcation.
But upon what theory even of fair
play and respect for honest intent can
we explain these painful revelations
about the Navy DEPARTMENT? There
have been stories about this depart
ment fog a long time--stories which
we have always hesita;ed to believe.
There seemed to be no foundation for
them, and We attribute them to disap-
point ment or revenge. But here we
have evidence, official and direct, from
the records of the department itself
records signed by the Secretary of the
Navy, Let us place this evidence
clearly before our readers. The admin
istratlon finds the financial accounts of
the government in the hands of one
OF the great houses of the world, that
of Barings-a house that had relations
with our government almost since its
foundation, which had always been
friendly in its financial dealings, which
had aided Us IN many ways, notably
during the war, when our credit was
strained to the utmost, and when the
hi in<1y1nnnaC J,Cn1
to destroy our credit in the money
local firm III Philadelphia, which bad
grown into sudden and unhealthy
prominence during the war, and an
other wi d cat banking concern of the
same character in New York, whose
chief spent SO much time In politics
that he could not attend to the little
Cuisines" that had accrued to him,
the administration transferred one
branch of its foreign account, that of
the State Department, to the house of
Ci9ws and the naval account to the
house of Cooke. We never heard any
reason for this change excapt that the
heads of these firms were ''ioyaP' to
the republican pan y and 'bled" freely,
like the post traders on tue plains. for
the cause" and We're crolIies of the
President, assiduous in personal atten-
tions and only too glad to minister
to the comfort and repose of a tired
CIief Magistrate anxious for a good
time The result of this transfer was
to withdraw rom our credit. at time
when We were negotiating our loans at
d lower rate of interest, the strength
Of great house like that # Barings,
aud saddle IT with the weakness of
mushroom houses like those of Cooke
and C.eWs, which, even at their best,
werr young and new and without
muscle, and helpless for any useful
fuaLcial purpose, especially III time
as Uncertain as the close of the var.
The troubles which all the world out.
side Of the Navy Department foressw
came. Jay Cooke failed on the 10Th
of September, 1878. Two days before
this Mr.. Robson, then Secretary of
the Navy, and at the time at Long
Branch in attendan e upon the Presi-
dent, sent telegraphic order to the
department to transfer to the London
house of Cooke lone million of dollars
for foreign account out of pay of the
navy" The treasury two days after,
hearing of the failure OF the New York
branch of Cookies concern, interfered
dtu HcULO lOJ SSIlI lllS IuOhef. linen
came dispatch from Mr.. C.ttell, for
Robson, who, if report does not
wrong HIM, has not lost much through
h s friendship fer the Secretary, and
who was IN London in some synd cate |
job. The effect of this dispatch of
Cnttell was to assure the Secretary
that public opinion showed ''conti |
dence" in Cookies London concern,
and that if the government would not |
''crusa" it itwould go on and do we'll, |
Instead of ''crushing," Robson, who
is liberal in dealing with other folks !
money, four days later-that is to say, |
On September %, 1973-drected the
Navy Department to send a mi lion
aud half dollars to Cookies house
The objections OF the Treasury We're
overruled by the President. for Robe
son Have seen the Pres
ident, and by his direction will draw
for million more to- morrow" The
money was drawn. 1t was sent to
Cookies London concern, But even
his credit could not save it. The firm
has gone into bankruptcy, and the gov.
eminent has to rely upon some very |
doubtful securities for the recovery of !
the advances thus made, in spite Of the
Treasury, as now appears, aud by the
direct order of the President, acting
unde, the advice of his Secretary of
the Navy.
How much the government will lose
By this transaction we cannot say
list OF collateral is not en-
He has some railroad iron,
a decree Of a court making him a pre-
ferred creditor, and ''fo' ty-tivc one
thousand dollar bonds of the st Joe
aud Denver Railroad Company. The
idea of Secretaryof the Navy lending
money on wildcat security like ''St.
Joe and Denver rail- DAD" would tie
if it were not too mourOful as
showing the reckless and %: ohigate
in which the credit of the gov
-r1ment has been ned for personal
and private aggrandizement. We
really cannot see even the shadow OF
an explanation for this transaction. It
Was bad enough to take from our
credit the support of a house like
Earrings and burden it with rick
ETY. concerns like those of Cooke
and Clews. But that might be
excu ed, as SO much of what Grant I
has done is excused from day to day,
'n the theory that it was an "error of
Judgment" desire to aid the party
md help a few good fellows who
wanted to be bankers. But nothing can
excuse this throwing of n million and
/ half of good money into the morass
If Jay Cooke, McCulloch 6 Company
Ifter it was known that the head of the
concern died in Philadelphia, and that
10 life was left in its English limb.
The Belknap business was scandalous
n every way, but we seriously ques-
ion whether the vulgar and ST ameless ,
freed of Belknap, who did not hesitate
o rob the poor soldiers on the plains
or diamond and lace money, is in