St. Paul daily globe. [volume] (Saint Paul, Minn.) 1884-1896, 1888-02-19
AN INTERESTING STORY.
A "Reminiscences Of President Buchan.
ans Administration
NEVER GIVEN TO THE PUBLIC
How Gen. Dix Come to Be Appointed
q 90 as Secretary of the Treas
b.t1e ury.

Special 10 the Globe
BUFFALO, n. Y, Neb. 1S.--Under
dateof Feb. Ia last, George S. COe, of
the American Exchange National bank,
wrote to Hon. E. G.. Spaulding, of this
Gity,i who was congressman from this
district during the early part of the war,
asking for some particulars relating
to y the financial position, which
he says has received but little
attention. Mr.. COe desired to obtain
some information concerning the re-
fusal of the New York banks to pay a
lJgOTernment loan. which led to Gen.
Dix's appOi ntment as secretary of the
treasury in place of Philip +. Thomas, of
| Maryland, whom President Buchanan
had appointed to fill the vacancy caused
by ethe resignation of Howell Cobb.
Mr.. Spaulding'S reply is interesting, as
furnishing the history of transaction
which is said to have not heretofore
been made public. In brief it is as fol-
lows: Soon after the assembling of
congress in December, 1860, it became
! more and more apparent that number of
the states would, at an early day ,secede
the office of secretary of the treasury,
leaving his diSloyal deputy, Philip Clay
ton, of Georgia, in charge of the treas
ury department.. President Buchanan
then appointed Philip F. Thomas. of
| Maryland, secretary of the treasury, to
| fill the vacancy, and John G. Cisco, who
was loyal to the Union, con-
| tinued to act as Sub-treaS-
urer in the city of New York,
while the assistant secretary at Wash
| ington was disloyal and apparently
acted with view to discredit the bonds
! and financial credit of the United States.
| expenses and interest on bonds, and
Secretary Thomas advertised for bids
on a loan of bonds to be issued,
such bids to be opened at
the office of the secretary
| of the treasury on specified day.
Towards the last of December, 1860, the
credit on the government in this emer-
gency was considerably impaired, and
it was difficult to get bids for this loan
in amount sufficient to prevent default
in the maturing obligations of the
government. Being member of
the ways and means committee.
Mr.. Spaulding attended the meeting for
the opening OF these bids at the secre-
tary's Office. The bids came in slowly,
and it was not until the last moment
that loyal banks in New York offered
an amount sufficient to meet the present
needs, payable by installments. 1t be-
came known soon after that considerable
of this money was being sent South and
! that the United States army was being
concentrated in the Southern states,
jeremiah Black, Edwin M. Stanton and
| Joseph Holt met at Mr.. Stewards Office
and decided to request the New York
banks to withhold payment of further
ihStallmentS until a new secretary of
the treasury could be appointed by the
president, and Gen. Dix was mentioned
as the man for the emergency.
Mr.. Spaulding went to New York on
Jan.1, 1861, and held conference with
the bankers and the sub-treasurer, j. G.
Cisco, at the Bank of Commerce. A COM
mittee was appointed to go to Washing
ton to assist in procuring the removal
of Mr.. Thomas and the appoint
ment of Gen. Dix. The committee
met from day to day in Washington and
strong pressure was brought to beal
upon President Buchanan, who finally
weakened and removed Mr.. Thomas