Clearfield Republican. [volume] (Clearfield, Pa.) 1851-1937, 1878-06-26

not being even placed on the book
which were withheld from public in
spection. The transfer order, whicl
simply directed the moving of note
from one point to another in Treasur,
offices, and did not represent money
were put into the reserve in place o
these secretly issued nineteen million
of notes, and were carried on the book
as cash till June 80, when they wer,
entered on the journals, instead of be
ing put down at their dates. Mean
while the books falsely stated tba
these nineteen millions were on hant
in the reserve, when they were really
in circulation. The transfer order
were falsely stamped as paid by th,
Treasurer, June 30, 1865. The regu
lar books and records do not show tn,
nature of the transaction, which had t
be carefully examined to get at tn,
truth. The issue was not acknowl
edged in the Treasury statements ioi
afterward. A certificate of temporary
loan deposit for $40, OOO,O 900 was mad,
out to the credit OF disbursing officers
and pat away in an unusual place
This certificate was made out July |
and dated back TO June 30, which tool
it back into the previous fiscal yea
and made it Q applicable to balanc,
the account, while the notes wer,
secretly going out. The amount OF
hand during the fiscal year was mad,
to appear by the books to increase in
stead Of diminish. When the issu,
finally acknowledged the temporary
loan deposit of $4,000 900 was pu'
down al paid, while in fact no pay
ment took place. Secretary McCul
Tough stated in the Fall of 1865 that
without the $40, OOO, 900 realized from
the sales of gold 10 November | of thai
year there would have been a necessity
Tor a further issue of interest bearing
notes.
1t now t%ranspires that during thit
very time this very further issue was
made. Mr.. Glover says it has not We,
been ascertained whether this immense
forced balance and secret issue cover.
a great defalcation, but that be has il
his possession sworn evidence thai
nearly every important account of th,
Treasury has been falsificd to an un
known but startling extent, and thar
if the House will authorize his commit
tee to sit during the vacation, anC
vote the needful expert aid, he will
proveit. He says it is impossible, with
out such investigation, TO know how
many secret issues and forced balances
have been made. IL will BIO remcm
bered that il came out before Mr.
Glover's committee in. the last Con
gress that Huntington, Jay cooko'i
cashier, repeatedly borrowed large
sums from the reserve, and that con
siderable amounts were often absen'
from the result, and represented by
slips of paper. Tho experts to thu
committee are appalled, at the $40,
000, 600 revelation, and one Of them
an experienced accountant, says it il
the most atrocious financial transaction
he has ever heard Of, and that there i,
no telling TO what extent fraud ans
Justification have gone. Mr.. Glover
says that his illness has been unfortu
nate In preventing the closing Of many
matters under inquiry, but that b,
deeply regrets, as he often stated dur
ing the session, that his committee wal
not empowered to get to work las
November, instead of waiting ill
March, for that then these natter
could have been fully developed ant
laid before Congress and the country
by this time.
NEW DEVELOPMENT OF AN OLD FRAUD.
In the course of the investigations b,
the committee on expenditures In tn,
Treasury Department Mr.. Glover haI
been enabled to complete the record o
a fraud which was slightly reported a
the time and attracted very little at
tention. In 1864 Charles H. Cornell
of Ohio, a friend Of Secretary Chase
cx-C Cashier of the Farmers Bank O
Salem, also ex-Cashier of a Bank a
Athens, Ohio, and ex-Treasurer OF ,
county in that State, and o man highly
recommended, was appointed to a posi-
ton in the Office Of the Register Of tn,
Treasury. About two years later b,
was made chief Of tho redemption
division in the Treasurer's Office, which
was charged with the cancellation anc
other Treasury notes redeemed OF
otherwise withdrawn. His duty was
after the count Of these notes, 10 have
them cut l~engthwise in halves and send
ono half each package 70 cut to the
Office Of the Secretary of the Treasury
and the other TO that Of the Register
to DO there counted and recorded. Il
the counts in these two Offices and Ia
Cornwcll's division agreed the pack
ages Of halves were taken to tho base
ment and there, by Cornwcll and q
clerk from each Of these two Offices
thrown into q furnace and burned
mill - l----