The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1876-03-31
NAVY DEPARTMENT ACCOUNTS.
Discussion of nte-War Questions by
Republican Senators.
BOUTWELL, ON SLAVERY
Starving Condition Of the Indians
About Fort Sill.
FROM OUR SPECIAL CORRESPONDENT.

WASHINGTON, March 80 1870
THE ACCOUNTS OF THE NAVY DEPARTMENT
THE NECESSARY DELAY IN SETTLEMENT
POSITIVE DENIAL OF THE EXISTENCE OF ANY
DEFIcIENCY-No ADDITIONAL APPROPRIATION
TO BE ASKED FOR AND NO LAW VIOLATED
Concerning story circulation that some drafts at
bur months against the Navy Department have not
been paid on presentation, tho Secretary OF the Navy
fays that the presumption drawn that he has spent
the appropriation is false that is no deficiency
that the agents OF the navy In London have
the money TO these drafts now their
possession in London, but that the incoming drafts
due between and the close of the fiscal year WILL
matter OF course exhaust all funds as the APP
preparation by the House OF Representative
20 only the necessary OUTLAWS. He explains
the accounts OF the pay OF the navy are neces
sariy diverse and scattered that no has seventy pay
masters, each of whom needs surplus cash in
hand and feach has only SIS, coo this would to
large sum scattered all the world the balancing
OF which comes in necessarily slowly and irregular
periods
The Navy Department keeps this pay account with
banker in London with the general understanding that
1t may draw him If necessary at times beyond It's
balance with him. The government was often
600 COO behind hand with the Barings but so far as
he navy accounts go, this ali the paynasters
settled their accounts But he adds that the
and balances being at such distant points 1t Is not
possible 10 bring them all In promptly
ut IA given time and the appropriations allowing
no surplus working capital there must sometimes be
such condition OF things as this H. therefore, the
pay OF the navy low this because there
has been there is deficiency, but because of
the necessary delay in settling outstanding accounts
lie adds that complicate this matter of settlement
all expenses of the navy, Tor the Marine Corps,
Dai1
Of the London balance, and the pay account
is aiterward reimbursed by the Treasury
out of the other appropriations, which. OF course
Increases the delay in the settlement OF this
Hence the periodical necessity of overdrawing his
balance in London while there is actual deficiency
md tins has always been the when the Barings
We're the government agents lie denies, therefore,
positively thai there is any deficiency, and asserts that
The pay account and all other OF the navy
correctly kept that he has expended his whole APP
preparation, but has his affairs such shape that
he will ask for no deficiency appropriation nor
need any, but that all his payments for the year will
be made out of the APRON iations OF the year. He
hdds with great posveness that IT is false that he has
used money from one appropriation to expcnd for
hnothcr that thus is contrary law, and u>der the
system of audit in the Treasury impossible and that
all charges Of this kind totally false groundcss
The reports which have been set anoat on this sub
representing the agents Of the navy in Lon
don, and as they are thus groundless they
ought to be contradicted 1t is understood that Mr.
Robson does evade any possible inyesti-
CATION by the House, but, the contrary means TO
assist the committee every way. There
details in the following account which do not appear
in Mr. Robeson's published letters and these is just
TO HIM 10 known Mr. Robson remark cd this
evening, in conversation with friend concerning the
dispatches OF his recently published that they
give entirely accurate account OF his action In the
matters they concerned. He said that IL should be
understood that the 10th OF September days
fore Jay Cooke Co. failed when he OF course had
idea that they gong fail. the timo had
Tor usual remittance TO Jay Cooke McCulloch &
Co, London who agents of the navy, and he
accordingly ordered this remittance OF mion that
IN despatch not yet printed OF the 18TH he ordered
the acting secretary to stop this remittance, Jay
Cooke having then failed and that the second despatch
given In The HERALD, was Commodore Reynolds
to this order. reporting that the remit
lance had been stopped time What ac-
lually happened he says, that the draft had
Teen given to Jay Cooke Co to be transferred but
MAS returned by them the Treasury Next he tele-
,raphcd to Paymaster Bradford, then In London In
conjunction with Mr.. Caltell stay and look into the
Affairs of Jay Cooke McCulloch X Co, the question
pcng whether the house safe and whether the
governments balance with them. that time about
S9O0OO0 was secure. This was the occasion Of the
dispatches from Bradford, which have been
printed and no says his instructions tcle-
Raphcd have not been printed. Meau-
he found 1t necessary TO keep Paymaser Bradford
in funds honor the drafts OF distant paymasors
they should arrive. in Cooke, McCuloch Il Co
could not or would not For this purpose he caused
the of ST. 500 600 to Paymastcr Cutler in Now
York and caused him TO buy exchange London, or
'shcr get transfers by cable Cutler paying in New
York only n Geographic certificate that equal
deposited IN London Cooke, McCuoch &
Co IN the meantime, he says, went paying drafts
as they came toshand, and the Secretary took
urcs TO obtain from tho house all the securities ho
roud get pressing them constantly About the 10th Of
October the agent OF Cooke, McCu.loch Co came TO
him aud represented that the house going that
II had honorod all the Nays drafts and that tho
kavy's baiancc was drawn down, far, TO about
5000 600; that they felt entitled for a new re-
mittaucc. on this question SIR. Robson took the
advice OF tho then Secretary OF the Treasury
President and they agreed 10 do so, moved by the
hear Of causlag disaster II they reiused-not
snly to Cooke McCuoch Co., but to
pthcr American banking houses in London.
tie therefore agreed remit them 81, 600 900, In
October and November, in instruments, and took
securities abundautly covering the remittance aud
The Old balance. Nhen Cooke, McSuhoch 20.
forced into liquidation then and thereafter Pay
master bradford took up the drafts OF the against
Me House as they In out Of funds
a his charge. Al present Cooke, McCuloch
/ Co. owe the governments about S7Oo,oOO
which, Mr. Robson points out Is $500, 900
than when the panic broke out and for this debt
has which will be realized In such manner
reimburse the Treasury, principal and interest,
~ the LIST July during the present fiscal year.
rhus be that he has lost nothing and that his
iction Is justified by the event
sovERNoR AMEs' DISQUALIFICATION IT Is RE-
uARDED IN Observation-Disclosures OF
MISSISSIPPI REPUBLICANS.
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