New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1888-02-19
AID THE NATION NEEDED.
AN EPISODE IN THE FINANCE OF THE WAR.
DIsLoYAL MEMBERS OF BUCHANANs CABINET WHO
TRIED TO TURN GOVERNMENT MONEY
OVER TO THE SOUTH HOW THE


DlsLoYAL MEMBERS OF BUCHANANs CABINET WHO
TRIED To TURN GOVERNMENT MONEY
OVER THE SOUTH HOW THE
CONSPIRACY WAS FOILED.
BUFFALO, Feb. 1S.-Th Comm ercial Adrertser to-
day publishes the following sting historical
correspondence between George s. Coe. of New
York. aud ex-Congressman L. G. Spauding, of this
cnyi
Nrw-YorK Feb. a. 1888.
MY DEAR SIR AS all incidents of the Clvi war
aie now OF historic Interest. have thought III
worth our while to recall some particulars relating
10 tne hnancial portion. which has received put
partial attention.
In thinking OF earlier matters I recall very WV
,uIy ule fact OF your Journey from W Washington 10
New York aud our meeting you one morning at the
punk OF Commerce to confer about the payment OF
kne G0~ernment loans which our bank IN New
YORK had taken in connection with Barring Broth
ers ~ Co.. London, and had paid in part. when IL
T Was discovered or suspected that Thomas Mr
Dnc"anans Secretary Of the treasury
wa to transfer the money into the Con,
Iederate r, son,, where it would be captured
was, whether we should pay or default upon the
Ppail,nce. Upon that question we sent Moses
in ayi", Joan C. Green and Low TO WASH
feel quite confident that you were the tr listed
agent to confer with us OH the subject and it re-
secretary of the Treasury, when we paid the
money. Can you give me full particulars of this
incident, date and what loan it wasf II so, 1t may
be wen to preserve it as history. don't know If
snail ever get time to do SO, but desire to write
financial sketch of those interesting days, from
N,ew-YorS standpoint. | am the only man bere
lc't whc can do II. With very kind regards and
peasant memories, | remain, my dear sir, very
Truly yours, GEORGE :. Cor.
The reply of Mr. spaulding to the above is as
follows:
BUFFALO, Feb II, 1883.
NY DEAR SIR: YOur kind and friendly letter of
the l4th instant has been received. 1t is long
yon. 1t calls to mind an important in
cident OF the great rebellion, which
mas never been fully known to the people.
II carries my thoughts back more than twenty
seven wears, hut ] wi endeavOr to comply with
your rrquest In the following brief statement: n
soon after the assembling of Congress IN De-
cember 1860. il became more and more apparent
that a nun Der of the Southern states would at an
early day, seccde from the Union, and that The
Senator's aud members of the H use would resign
their seats in Congress and return 10 these disoyal
States: Howell Cobb resigned the office Of Secre-
tarv of the reasurv leaving his disloyal deputy,
Philip Clayton of Georgia, IN charge Of the Treas
ury Department. President Buchanan then APP
pointed Philip F. THOMAS; of Mary Secretary
Cisco, who loval to the Union. continued TO
act as Sub-1reasurer in the City of New-fork,
while the As sistant Secretary al Washington was
dls,O, al and apparently acted with view to dis.
credit the bonds aud financial credit OF the United
States.
PLOT TO DESTROY TIE NATIONAL CREDIT.
More money was needed to pay current expenses
and the interest on the bonds. and Secretary
Thomas advertised for bids the loan of bonds TO
be issued, such bids to he opened at the office of
the secretary of the Treasury specified day
toward the last of December, 1860. The credit of
the Government in this emergency was considerably
impaired and II difficult to get bids for TINS
loan IN IN amount sufficient TO prevent default on
the maturing obligations of the Government.
BENZ member of the Committee Of WAYS and
Means, i attended the meeting for the Openlng OF
these bids at the Secretarys office. The bids came
IN slowly and n wa rot antll the last noment a
bid came from th' Bank of Commerce In New-lork,
made by loval banks in that city, OF nm amonnt
sufficient to meet the present needs. payable by In
stamens.
After is loan was made it became apparent
that more money was being transferred To the
Southern states than was neces airy and that tl e
United States Army was 10 a large extent located
in the Southern States. One OF more of the install
ments was pa d on the bids on the last of Decem-
o o NOE a FShg nG me atnde 90 Of tSs Gsoya
men In Mr.. Buchanan Cabinet. and Mr. Buchanan
cGed but was generally believed TO be oyal TO the
p nGn' Three Of his Cnblnet. VIZ; JereI Hnit
we're known 10 Mr. Seward and others to be loyal
to the Union, and were ready TO cooperate III pre-
serving the finances and other important measures
until Mr. Lincoln could DC inaugurdted Oh the 4tn
of the following March.
THE DIsLoYAL CONSPIRACY FoILFD.
Under these circumstances. on January l, ] S6l.
upon consultation at Mr. Stewards private Office
it. was d,c ided that should leave Washington
that evening for New-Yorl5 to consult with the
bankers who had bid for the loan with view to
have them hold back tho payments Of further in
stalments until the new Secretary Of the Treasury
could be selected and appointed by Mr.. Buchanan,
and General Dix was mentioned rs good man Tor
/ the place in this emergency. | Ieft FOR New ork
/ the same evening, January /. S6l, and on arriv
ing at Ncw-Yorll took early breakfast at a
hotel and proceeded at once to the residence OF
L"hn S@y"n nTrSddent OF th So6 "nk NIX q ris 6
his breakfast. | had q personal acquaintance
with large number Of prominent bankers. but no
personal acquaintance with Mr.. Stevens 1t took
me some time TO make his acquaintance and I'M
p~css him With rho imnoTtance Of my mission.
He finally rang bell and directed his coachman
to bring around his horses and carriage as soon as
posS BILE. We Immediately rode down to the Bank
Of Commerce and sent for John j. Cisco, sub
treasurer and other bankers, and on being fully
informed Of the situation in Washington fran,
cially and otherwise. fuller meeting was called
to he held in the directors room Of the Bunk OF
we'll attended by prominent bankers and business
men. Among those | r'collcct being present were
Vcrmiiyc David Lord, a A Low j. c. Green.
The Meeting seemed fully to appreciate
ssve gravity and and early "'''p action They s
anpointcd a committee, consisting of A. A. Low,
John C.. Green and Moses TAYLOR, to go to Wash
with our friends in procuring the removal Of Mr..
Thomas from the Treasury Department and the
appointment Of John Dix as Secretary IN his
place
GrvFRAL pIx'S srCCTss As SECRETARY.
The same evening I went with the committee
10 Washington and procured rooms for them at
the National Hotel, where I WIS boarding. ]
Immediately arranged for a meeting Of the COM
mittee with Mr. Seward. Mr. Black Mr. Stanton
and Judge Holt, loyal members Of Mr. Buchanans
Cabinet. This meeting only partially sue
ccssful, but negotiations continued from day to
day and more influence was brought TO bear on
President Buchanan lie finally in very few
days, removed Mr. Thomas and appointed John
A. Dix Secretary OF the Treasury in his place.
General DIX came TO Washington and took pos
session OF the Treasury Department.
The remaining instruments due on the loan
were duly paid and the Treasury Dcnartmcnt
was thereafter we'll managed General Dix made
his home in the White House with Mr.. Buchanan
until Mr.. Lincoln inaugurated Presldeh''
March A. 1861.
You took an active and impOrtant part u sYb-