The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1888-02-20
AN ANTE-WAR INCIDENT.
Circumstances That Led to the Appointment
of Gen. Dix as Secretary Of the Treasury.
,.ciaI to the Indianapolis journal.

Special to the Indianapolis JotirnaL
BUFFALO, N. Y, Feb 18.-Under date of Feb
IA, last. Mr.. George s. Coe. Of the
American Exchange National Bank, wrote to
Hon. z. G.. Spaulding, of this city, who was
Congressman from this district during the early
part Of the war, asking for some particulars re-
lating to financial operation which, he says,
has received little attention. Mr.. Coe desired
to obtain some facts concerning the refusal OF
the Now York banks to pay government loan,
which led to General Dix's appointment as Sec
retary Of the Treasury in place OF Philip Z.
Thomas. OF Maryland, whom President Buch-
anan had appointed TO fill the vacancy caused
by the resignation of Howell Cobb. Mr. Spauld.
ings reply is interesting as furnishing the his
toryof a transaction which Is said to have not
heretofore been made public In brief
it is as follows: Soon after the assembling or
Congress, ir December 1860, it became more
aud more apparent that a number OF the States
would. at an early day. secede from the Union.
Howell Cobb resigned the Office of Secretary
of the Treasury. leaving his disloyal deputy,
Philip Cl ayton, of Georgia in charge OF the
Treasury Department President Buchanan then
appointed Philip f. Thomas, of Maryland, Sec
retary of the Treasury TO fill the vacancy, and
John j. Cisco. who was loyal to the Union, con-
tinued to act as sub-treasurer in the city Of New
York; while the Assistant Secretary At Washing
ton was disloyal, and apparently acted with a
view to discredit the bonds and the financial
credit OF the United States. More money was
needed to pay current expenses and interest on
bcuds, and Se,rctarss ~ honas al vertised for
Efis on !. loan IT Ocflts to be issued. such bids
to be opened at the Office of the Secretary
of the Treasury on a specified day, toward the
last of December, 1860. The credit of the
government in this emergency was considerably
impaired and it was difficult to get bids for this
Lam in amounts sufficient to prevent u default
in the maturing OBLIGATIONS of the government
Being a member of tho ways and means commit
tee, Mr.. Spauldlng attended the meeting for the
opening of these bids at the Secretarys office.
The bids came in slowly, and it was not until
the last moment that loyal banks in New York
offered amounts sufficient to meet present needs,
payable by instailments. 1t became 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 S. Black, Edwin NJ. Stanton
and Joseph Holt met at Mr. Stewards Office
and decided to request the New
York banks to withhold payment of
further installments until a new Secretary of
the Treasury could be appointed by the Presi-
dent, and General Dix was mentioned as the
man for the emergency. Mr. Spaulding went to
New York Jan. l, 1861, and held confer
ence with the bankers and sub-treasurer. j. j.
Cisco, at the Bank of Commerce A committee
was appointed to go'to Washington to assist in
procuring the removal of Mr.. Thomas and the
appointment of General Dix. The committee
met from day to day in Washington, and strong
pressure was brought upon President Buchanan.
who finally weakened and removed Mr.. Thomas,
appointing General Dix in his place. General
Dix at once took possession of the Treasury De-
partment and the remaining installments due
on the loan were duly paid.