The sun. [volume] (New York [N.Y.]) 1833-1916, 1888-02-19
AN ANTE-WAR INCIDENT.
HOW BUCHANAN's DIsLOYAL F1NAF-
CTAI sRCRETARY WAS REMOVED,

BUFFALO, Feb. 1s.-The Commercial Adper-
tiscr to-day publishes the following interesting
historical correspondence between George 3.
Coe Of Now York and ox-Congressman L. g.
Spaulding OF this city:
AMERICAN EXCHANGE NATIONAL BAsn
I26 BROADWAY, Nav Sonk, feb. IL ieco'
MI DEAR Sin: AZ ali incidents OF the civil war are
now OF historic interest I have thought 1t worth our
while to recall some particulars relating to The financial
portion which has received but partial attention.
In thinking Of earlier matters I recall very vividlv
the fact of your journey from Washington 20 new
York. and our meeting you one morning At the BANK OF
Commerce to confer about tho payment OF the GOV
eminent loan. which our bank in New York had taken
In connection with Barring Bros 4 Co, London. ana had
paid In part when 1t was discovered. or suspected, that
Thomas Chen Mr.. Buchanan's Secretary OF the Treas
ury) was to transfer the money into the Confederate
region. where IL would be captured by the enemy. The
question for US to consider was, whether wo should pay
or default upon the balance. Upon that question we
sent Mr.. Moses Taylor, John q. Green. and A. A. Low to
Washington to confer with Mr.. Buchanan. 1feel quite
confident that you were the trusted agent to confer with
us on tho subject, and 1t resulted in the appointment OF
Gen. Dix to DO Secretary Of tho Treasury, when we paid
the money. Can You give me full particulars Of this In.
cident date, and what loan It VAST II 70, It may be
well to preserve 1t rs history. I don't know II I shall
over get time to do so. but 1 desire to write q financial
sketch Of those interesting days from q New York stand.
point I am tho only man here left who can do II. With
very kind regards and pleasant memories, I remain, my
dear sir. very truly yours. GEoRGR 8. Coz.
Hon. Z. q. srAULDisG, Buffalo. N. y
Mr.. Spauldine replied as follows:
BUFFALO, Feb. II. 1885.
MY DEAR SIR: Your kind and friendly letter
Of the 14th instant has been received. 1t is y
meeting you. 1t calls to mind an important in
cidcnt OF tho great rebellion. which has never
thoughts back more than twenty-seven years.
but will endeayor to comply with your request
in s tho 's a,tsS Ing 6sisi stbSIIs@e eP Gonersss in d.
cember.. 1860. 1t became more and more ap-
parent that "a number OF the Southern States
and that the Senators and members Of the
House would resign their seats in Congress-
a End rG ,ssIrrs sG these the oS Sislo y; ss States; Howell sa
Treasury. leaving his .~disloyal deputy. Philip
Clayton of Georgia In charge Of the Treasury
pointed Philip +. Thomas OF Maryiand secre-
tary Of the Treasury to fill, the, vacancy. and
i finnsd l. to Sis acct n w4 Su Be i leyal sS t fn q M cit soo oi
New, York, while the Assistant Secretary at
Washington was disloyai. and apparently acted
cial credit of the United States.
ne MHss a money ,b. was ms NEEDED nee Cd to to pay current e1-
Rotary Thomas advertised for bids on tho loan
OF bonds to be. issued, such bids to BE- opened
at the office Of the Secretary OF the Treasury
Der. isso. The s Credit sHE" Of the The G taos RI Dseeh In
this smaesrSEency was considerably lide impaired. and
IL WIS ulllcult 10 ReC DlQS 1Or tnlS loan IN IN
amount sufficient 10 prevent deiault on the
Being u member Of the Committee OF Ways
ing Of these bids at the secretary's ofice. The
bids came In slowly. and 1t was not until the
merce in New York, made BY loyal hunks in that
city. OF an amount sufficient to meet tho pres
ont needs. payable by installments.. After this
loan was made 1t became apparent that moro
money was being transferred to the Southern
States than was necessary. and that the United
tho Southern States. One or more OF the in
December. 1860. The financial situation be-
of the disloyal men in Mr.: Buchanan's Cabinet.
and MT. Buchanan was himself in some degree
belieyed. to be. loyal to tho Union. Three OF
his Cabinet; VIZ. jeremiah Black. Edwin NJ.
s sswara s ana 9 5t9bssph - aqpl pit we're kn9S : r. Mr..
and were ready to cooperate in preserving the
finances and other important measures until
Of the following March.
Under these circumstances on Jan. /. 1861,
ofhHieee. It was decided that should leave p VASE
with the brokers Who had bid, Tor the loan S,H With
further installments until the now Secretary OF
the Treasury could be selected and appointed
as a good man for the place in this emergency.
left for New York the sans evening. Jan. i.
1851. and on arriving at New York took, an
once to the residence Of John a. stevens. Presi.
dent Of the Bank Of Commerce. on twenty
breakfast, 1 had a personal aeauaintance
with n large number OF prominent bankers, but
no personal acquaintance with Mr.. Stevens. 1t
He finally rang a bell and directed
carriage as soon as possible. We Immediately
rode down to the Bank q Commerce and sent
at Washington. financially and other
wise. q fuller meeting was called. to be held In
me dirssetors' room OF the Bank OF Commerce
,r The sdj9qHrnsd meeting was we'll attended BY
cisco. George 5. Cos. a. /. Siiliman' J. ' |. Ver::
Tnilye. David Lord. A. A. Low. j. 6, Green.
,ultcd together. and seemed to fully appra-
the gravity and importance of decisive
.nn early acton 81 They appointed 2 COMMITTEES;
Noses Taylor, TO 20 to Washington with ms
he same evening to cooperate, with ourfriends
Of John A. Dix as Secretary In his place.
he enc o sams sysntI tn I ,yaH; z lssn aDd vent nrnov with
ior them at tho Nstlonal Hotel. WS6sre 1
vas boarding; l Immediately, arranged for .
OF Mr., D~uchanan's Cabinet. This
assoiiailo %sS ee on!E %saarttl roS day IS dsH. a SSi
more influence was brought to bear on Presi-
lent BurhanGn. He finally. in q very few days.
,emoved Mr.. Thomas. and appointed John A,
pix Secretary OF the Treasury in, his place.
len; Dix game to Washington and took pos
naming, insta!lmants on the loan were duly
,aid. and the Treasury Department was there
p the White House with Mr.. Buchanan until
hr, Lincoln was inauGurated President. March
You took an active and important part In
loans during the rebellion. includ-
ng the Bank bill. LeGal-tender act. and all
financial measures which carried us
through tho fiery ordeal to the consolidation
the national union OF all States, North and
with ."one country and one destiny"
With kind regards, ! remain very truly your
I'D friend. l.. g. S~PAULDIH0.
Money tho Gas Companies Get from the City
Tho Aldermen's Committee on Law yes
erday heard arguments on the proposition
before the Board to repeal tho ordinance
'assed in 1885 by which the gas companies are
sh