The New Orleans daily Democrat. [volume] (New Orleans, La.) 1877-1880, 1878-06-19
FRAUD AND FALsrFrCATIoN.
secret Issues and Forced Balances In the.
United states Treasury Departments


United states Treasury Department.
[Chicago Timesl
WASHINGTON June 13s-In the course Of tYz9
Investigations by the Committee on Expendi-
lures in the Treasury Department, 1t has been
found that the Treasurer's journal for june
80, 1865, completes his account for the quarter
and fiscal year by detailing seven orders for
the transfer OF notes from the Washington
Office to the offices at New York, PhladeiDhin.
Cincinnati and Louisville, the total OF these
seven orders being $190OO,000. These $1,000
600 are balanced by an entry at the close of
the account for the quarter and fiscal year OF
S19, 600 deposited as q temporary loan af
6 per cent No depositor's name Is given either
on this account or on the list of the temporary
loan depository. The deposit is put down ia
a lump as by "Dtsbursing officers interest,
to be paid" close inspection Of the records,
which has quietly gone on for some time, re-
Yeals the fact that no such deposit was made.
The entry Of $19,0O0,000 is false and the BAH
ance which 1t helps to make Is forced 10
turns out that the $19,000000 were taken from
the reserve" OF reissued compound Interest;
notes at various times before June 30, and
transmitted to the assistant treasurers and
repositories, who paid them out. This issue
OF $19, 900 was concealed, not being even
placed on the books, which were withheld
which simply direcJed the moving Of the
notes from one point to another In the treas
ury offices, and did not represent money
were put into "the reserve" In place of these
secretly issued $4,000, 900. of notes, and were
carried on the books as cash till June 30 wheqa
they. were entered on the Journal in
stead OF being so put down at their dates
Meanwhile, the books falsely stated that these
$19, 1905, 600 were on hand in the reserve wheu
they were really In circulation. The transfer
orders were falsely stamped as paid by the
Treasurer on June 80, 1865. The regular books
and records do not show the true nature OF the
transaction, which had to be carefully exam
ined to get at the truth. The issue was not
acknowledged In the Treasury statement for
months afterwards
A certificate Of a temporary loan deposit for
S19 900 was made out to the credit of the
disbursing officers and put away In an un-
usual place. This certificate was made o1f
July |, and dated back June 80, which took It
back 10 the previous year, and made 1t seem
applicable to balance the account While the
notes were secretly going out the amount on
hand during, the fiscal year was made 10
appear by the looks to Increase instead Of
diminish. When the Issue was finally ac-
knowledged the temporary loan deposit of
100000 was put down as paid, while in
fact no payment took place. Secretary Mo
Culloch stated In the fall Of 1865 that, with
out $40, ,000, 600 realized from the sales Of gold
to November Of that year, there would have
been q necessity Tor the further issue Of In
terest-bearing notes. It now transpires that
during this very time this very issue was
made
Mr.. Glover says it has not yet been aseer-
tained whether this immense forced balance
and secret issue cover great defalcatfon, but
thathe has in his possession sworn evidence
that nearly every important account Of ths
Treasury has been falsified to an unknown
but startling extent, and that IL the House
will authorize his committee to sit during the
vacation, and vote the needful expert aid, he
will prove 1t. He says it is impossible with
out such an investigation to know how many
secret issues and forced balances have beer
made.
1t will be remembered that it came out be-
fore Mr. Glover's committee In the last Con-
gress that Huntington, Jay Cookies cashier,
repeatedly borrowed large sums from "thg
reserve" and that considerable amounts were
often absent from the vault and represente8
by paper Slips Mr.. Glover says that his iii~
ness has been unfortunate In preventing this
closing Of many matters under inquiry, but
that he deeply regrets, as he has often stated
during the session, that his COMMITTEES wag
not empowered to get to work last November
instead Of waiting until March. Then these
matters could have been fully developed and
laid before Congress and the country by this
time. The experts to the committee are ap~
palled at the $l9,000,000 revelation, and one 0f
them, an experienced accountant, says It is
the most atrocious financial transaction be-
has ever heard Of, and that there is no telling
to what extent the fraud and Justification have
gone.