The New York herald., 1879-08-01
THE GLOVER REPORT.
Exposure Of Alleged Frauds on
the Government.
RANSACkING THE DEPARTMENTS.
seThe Secret Growth Of DespOt-
ism and Corruption"

A synopsis Of the Glover Congressional report so
persistenty presented in certain quarters attempt
ing to show that Irregularities and dishonesty by r
responsible officials characterize the inside workings
of the Treasury bureaus at Washington. will be found
below
In presenting the report Mr.. Glover. from the Com
mittee Expenditures in the Treasury Department.
by stating that the rule under which tho
committee appointed is No. l03 OF the House.
which in 1916 ordered their appointments bien-
nially thereafter. Under that rule. however.
little had been done in the matter OF inquiring
whether the expenditures OF the Treasury Depart
ment are justified by law for sixty years; and the
appointment of the committee. though regularly
made. came to be deemed mere matter of form,
while the committee supposed to have prac-
tical functions. The report states that although
the committee were instructed by resolution Of the
House, on January H. 1878. to proceed at once with
the duties assigned them by the rules 1t not
until March Of the year that the
committee fully clothed with the powers
indispensable to the discharge Of such duties. Con-
gress reminded that the greatness Of the task de-
volving on the committee may be estimated when it
is remembered that the Treasury ut Washington
contains over thirty bureaus and divisions equiva-
lent to bureaus. charged with important functions
and the supervision Of eleven thousand
officers and employees; that the scope OF
its powers extend from New Brunswick to
California. ana from the Mexican Gulf to
the Polar Ocean, and is informed that those
powers in their exercise often despotic to de-
gree which admits of suppression of the proof of
official misconduct After reciting the extensive
agencies and ramifcations Of the Treasury Depart
ment. it asserts the impossibity Of the Secretary
of the Treasury to give to the various questions
that arise in the management of the system the at
tention which is essential in the service" The
report goes on to state that the committee sifted
thoroughly all complaints that were made. although
obstacles were frequently placed in their way by in
terested parties.
Many Of the difficulties it states were removed by
establishing good understanding between the Pres
ident aud the committee.
THE sEvEN-rH1RrY LOAN.
OF this financial measure the report says that in
the spring of 1865 the country surprised by the
speed with which Jay Cooke. as subscription agent
for the loan, managed to obtain subscriptions
in day; It has. has generally been believed: s
the fruit Of legitimate industry and SKILL ''but
ascertained by the committee show that it
largely done by taking advantage Of the necessities
Of public creditors"
RETIRED NOTES AND BONDS.
In setting forth the alleged thefts and ret re-
issue Of retired notes and bonds ordered to be de-
stroyed the report cites the Of Charles H.
wall who in 1868 was appointed by Secretary Chase
clerk in the Treasury Office. and was made chief Of
the redemption division OF the Tressurer's office.
charged with the handling Of legal tender and
fractional currency sent in for replacement with
new notes. This man. it says. was also member Of
the .'burning committee" charged with destroying
iengthwise in halves in his division and after the
upper halves had been counted by the Registers
office and the lower ones by the Secresrys and both
returned to his division. 1t goes to state:-"In
putting the halves into the furnace he repeatedly
slipped packages of them into the side pockets of
lopse coat which he worc and thus secretly with
| held them from burning. These withheld
halves he substituted for those afterward
second time for count and record thus
being credited for the same halves twice.
| for which he substituted these stolen halves.
| and yet to furnish the Burning Committee all the
halves for which the accounts called How much he
he arrested. December 23 1868. $3l .934 50
recovered from him. and large amount OF halves Of
he had put into circulation again at least $4,000
United States demand notes which stood on the
books destroyed and ct least $1,000 Legal tender
notes which were also certified a. burned"
According TO the report Cornwell was arrested and
finally turned over to the civil authorities, by
he WAS indicted for abstraction OF public records
He convicted. 1t states. Of stealing the upper
halves of $s4. 600 Of notes. and was sentenced TO
pay fine Of 100 and to stand committed till the
nne was paid: He was finally pardoned after being
in prison short time. the record giving
rs 70 how the pardon was secured.
ENGRAVING AND PRINTING.
Advertng to the extent OF the Bureau Of Engrav-
attracted to the remarkable secrecy" with which
its affairs conducted, il says that document
printed by congres. contains an annual report Of
report transmitted 70 Congress with the
report of the Secretary of the Treasury.
volume printed. Even when this report was OBJ
tanned it did not furnish the information needful to
understand the management of its affairs. Continu-
ing. it says THE Register OF the Treasury under
date OF May 9. 1875 states that the expenditures
prior 1875 were paid under expenses Of national
loan. and that to ASCERTAIN the expenditures en-
craving and printing would require analysis of
vouchers which would involve the labor OF dozen
clerks for at least six months. For the two years
preceding the present Administration the net expen
ditures were-
.'....---.....-- is1ll o'
''lf this average fairly represents the unsnown
period-ls63-I inclusive-the total for lS63-76
would be over s25ooJ.Ooo. Adding the expenditures
for 1877 and ls7s--over $3.50 U0O-and the total
would exceed $26. 100000 for sxeen years. Much of
this. as will be shown. has been wasted.'
CoUSTERYEIr NOTES
In discussing counterfes of legal tender and other
United Stairs notes. the report states that each of
the last three Presidential elections has been fol-
terfeits; and that in 1860 the entire OF legal
ssnaofs sa fs., was srounS called n; and reprinted
the oldest bank note engr~vers in the
country has testified emphaticaliy that when So
the originals. many such terfcis" are, they
cannot be counterfeits. but must come from the
genuine bcdpieces. whether the plates whence they
are printed were made from such bedpeces in or out
of the Treasury.
The government it says has redeemed SIS 900 worth
OF sevcn-thirty notes. which were afterward held to
be counter. .eit. and Jay Cooke Co.. through whom
they were presented for payment. were obliged to
refund the money. committee appointed by
the Secretary os the Treasury. when the plates
whence these notes said to be printed were
captured. to examine them and see them
destroyed. This committee by means
certain whetherche plates were from genuine bod
pieces not but they gave the govcrnm ont the
benefit of the doubt The report holds il AS signn-
cant that lever since the printing legal
national bank notes began the chiefs of the bureau
and other officials have persisenty labored to get
all the plates and bedpieces into tho Bureau, and
that this effort has at last succeeded despite repeated
warnings of its danger"
An EXPORT ECoSoMIzE.
I'm 1864 the report proceeds to state. ~ select
committee of the House. OF which Mr.. Garfield was
chairman. reported that the printing OF the notes
and bonds OF the United states in the Treasury had
resulted In saving OF expense to the government and
better security against fraud; but. In view OF the
facts since ascertainod, that while this investigation
was going on waste of $3OOUOO taking place in
using worthless process. wherein the head
of the BUREAU pmrt OMner. and that