The sun. [volume] (New York [N.Y.]) 1833-1916, 1876-06-25
the GREAT NAVY SWINDLE.
How the Money was Taken from the Earrings
and Deposited with Juy Cooke ~ McCuiIocb.

LONDON, June Ito comply with your
request to the fullest extent possible. / have
sought Information where II could best be
had. / have been told, and nnd that II IS quite
true, that the Messrs. Barring dislike. as a
general rule, to see themselves In print, but
they cannot reasonably OBJECT to any correct
statements Of their actions while they were the
banker or fiscal agents OF the United States
Government. from Its foundation down Save for
three or four years. to 1871, for that is matter
OF public concern. and learn that 1t Il true
that they do not consider II becoming in them
to crircise the action Of the United States Gov
eminent. however painful 1t msDt have been
To- them. The loss to the United States has
been greater than to the Barings, and II the
Navy Department account with the new agents
were To be called for, fancy 1t would be found
that white the Birings w're In the habit OF
waiting iii their books showed "A consiieraple
balance due before ASKING the Depart ncnt Tor
money he new agents had the mon'v in nd
vance Of their tyments. In such case the
Barnes charged Interest at the rate u i've per
cent. ouN-the rate In America being six nr
seven-aud that allowed ny the present agents
here ptOuahiy not more than three. IL 50 much.
~ VIII see, too, good deal Of u ference IN
interest, o the loss Of the Guvernme mt tins In
ADDITION To any gam there mi MT Elm drawing
utis ON distant quarters on the liarlngs, over
those IN house les, known; mere T. also, of
course. a certain fisK In leaving the money with
agents before II l. required.
1t now appears that the Government has hcen
rum NJ A flsk WI h the new agents which never
could h ave uecn the case with the Batings, for
the rc 1850 ms already gwen.
Yqi will see ~ the Boston Daily Aducrtiser OF
ApIil "A despatch from Wasningtnn in which
tue Score AIRY Of the Navy l. represented as
stating that rats were drawn ION Selig nan
Hros, the naval 1nancItl agents IN London" and
AZ er other remarks, no add@, Inc fact being
shown tat TINS system Of drafts has been in cx
istence ever since the department has had fiscal
AGENTS abroad"
do not know what the phrase naval Asc Il
agents means or n u Is distinct from TIE
l.pg af fha
Mes-rs. McCulipch & Co. or whether me e fUur
months drafts we're sent t. the tier lrm to
discount, involving "A commission to M-ssTs.
Srl.n III Bros. but II II is meant that any sIcn
drafts We g used when the Brlngs were the
agents ! am assure II Is quite "a mistake hen
as sad before Uty pau before receiving re-
ENDORSEMENT, ana 50 eHectualij saved tue Gov
trnnIent all risk.
IL would seem pretty clear that somebody
kept Messrs. Nctull rh Co. going at the ex-
pen>e or RISK OF the United States. Ana, too, |
aui crediul, informed. that tue Aessrs. Is ,rInR
offered t. come 10 the AID OF the Department,
advancing. II necessary, any reason Die amount
req .ired To- take up an, drafts which might
have boen Running ON IVES r.. McCIllDch Go
inc secretary 81 the IVY went lar out Oi ths
record whtn no asked. IN the article ABOVE al
luded to, snail tho d"uartment Use itS credit
with lts lin ,ncidl agents as contemplated b, MS
tue Secretar, > arsteemrnt, and sanct oncd ~
the custom - siNN years p AS thi- staten mt
Of tie secretary ul,tlncll, goes back tO the vs.
OF the Is riNEs. ~ tu.luatiun suuws that such
process rs ptNmtsicrs at home drawing On Or In
faN OF that house 1t four months was IN
known even IN slugle instance.
lhe NeU YORK H6TId OF Aprll makes tho
Secretary refer 70 the practice 81 the last Sky
years. on II understand the "practice,' II
" very Il nerent from the BlrugS'. aud requires
tpu-e "A mira pirfD with commission a. A 'ir M
ing post. ana lnvoNing tn respon Iollity OF the
u"p 'rtinrut bl 10 gent (.he pay Aster in Lou
donl ar wing nills. The advances ~ the u r.
ihss were very SIM le mat or. tucV merely ldU-
Ig, and trusting the Vrrnmcnt OF tn United
States tilI % was convenient tor II TO repay.
NV am satisfied tho Bar rs, rue To the
tr uttIour Of their nuus', hiN uOl tho least de-
sire or inclination 10 dict tie to the United
state, Government who are to be its London
A.euts OF 90 appear DESTROYS Of a return to them
Of the agency. or OF any inyrsti- ,tlun m % the
causes OF tueir removal as AGENT. Il Is enough
Tor thcm that the advice Of the ChdngU OF tue
agency " - accompanied hv strong rX.iesslOus
ut usiictiun Win the mode III winch that
house mad discharge The duties of the agency.
have confined myself to answering the
u .eiles prOpoundcd In another letter may
give some aCcOuut of the M iuucr OF iii, pusal ~
lnltel Statr. paymAsleIs' drafts 10 LOndOn