The National tribune., 1895-10-10
THE SMITHSONIAN
INSTITUTION.
Arkansas Borrowed SmithSOn'S Money
and Wants to Keep Ii.

It is not generally known that the United
States had TO furnish the money which founded
the famous Smithsonian Institution, but such
is the fact The trouble was that il invested
the beouest of James SmithsOn in Arkansas
bonds and the State defauted them, principal
and interest aud the United States being
pledged by act of Congress to apply the money
rs the testator specified, there was nothing 10
DO hut make good the pledge.
Now Arkansas, after its shameless repuula-
tion which has been the financial practice OF
the State, is expecting TO get from Congress at
the coming session, full quittance OF the debt,
princinal and interest. Things might, OF course,
run along as they are, but the existence OF these
evidences of dishonor hurt her borrowing ca
pacty. and she needs money. And Arkansas
politicians feel sure they will get It,
The story OF the Smithsonian Institution. the
way Arkansas got the money and kept II, aud
all the rest is told in the New York Herald.
The Herald begins by quoting the provision OF
the will OF James Smithson, by which the insti-
tuition was formed: j. bequeath the whole of
my property to the United States of America
10 found at Washington, under the name OF the
Smithsonian Institution, an establishment Tor
the increase and diffusion of knowledge among
men,"
Smithson was the natural son of Hugh Smith
son first Duke of Northum berland. and at the
time of his death, at Genoa, June -, lo2S. bore
the reputation OF being one OF the most expert
chemists in Europe. He was Fellow oil the
Royal Society. The reason for Smithsons git
10 the United States has never been discovered.
lie enjoyed the respect and admiration Of his
counirymen, was never known to have visited
America. nor to have had a single correspond
ent in this country.
The Request was made contingent upon the
death of his nephew without issue, and that
coming to pass President jackson, on Dec IL,
If. IAN
gress, with the statement that he bad no
authority TO take any step toward accepting the
trust. In the Senate the Presidents message
was referred TO the Judiciary Commi ttee, and
on Jan. 2. 1886, the Chairman, Leigh, of Fir-
ginia, reported that the bequest was valid, and
the committee believed that the United
States would be entertained in the Court of
Chancery of England TO assert their claim to
the fund as trustee for the purpose of founding
the charitable institution at Washington to
which it is destined by its donor"
On consideration of resolution reported by
the committee April 90 1896 providing for the
prosecution of the claim, Preston, of South
Carolina contended that the Government OF
the United States had no power to receive the
money. Calhoun was of the opinion that 1T
was beneath the dignity of the United States
90 receive presents of the kind from anyone"
After considerable debate the resolution was
finally passed. In the House the Presidents
message was referred to a special committee.
and only after the persuasive arguments Of
John Quincy Adams. KIP resident, then Con-
gresham. was il voted TO accept the bcquest
bill was then reported directing the Presi-
dent TO appoint an agent TO assert and prose-
cute the claim for the United States in the
COu [ Of Chaacery of England. The bill pro-
vided that the agent was to give bond of
100000. and the Treasurer of the United
States was to receive all moneys obtained
account OF said bequest, and the faith of the
United States was soemnly pledged that the
fund should be applied for the purpose of
founding and endowing at Washington under
the name of the Smithsonian Institution,
tablishmeut for the increase and diffusion of
knowledge among men,"
On July IL. 1886. the President appointed
Richard Rush, of Pennsylvania. the agent to
prosecute the claim. His compensation
liked at $1,000 per annum, with $1,000 addi-
tiona for contingent expenses. This did not
include legal expenses. Rush gave the required
bond, with J. Mason, jr., and Benjamin Z.
Howard as sureties. Rush had been Comptroller
of the Treasury, Attorney General, Minister TO
England, Minister 10 France, and Secretary Of
The Treasury, and was, therefore, eminently
ftted for the task.
In November, 1896 bill was fled in the
English Court of Chancery in the name of the
President Of the United States. In 1887 the
matter was referred TO master. At that time
there were more than 500 cases pending before
the court. Nevertheless decree was obtained
Oh May IL. 1898. that being in the first year of
the reign of Queen Victoria. The amount re-
eeived exceeded eI00 600.
This money was converted into gold sover-
eigns, packed IN IL boxes, and arrived in New
York on July u, 1893 and WAS delivered TO the
Treasurer OF the United States Mint at Phia-
delpbia. On being recoined it prod uced $5063l6.
The question then arose as TO the disposition
OF the legacy. Various plans and schemes
were advised, too numerous to detail. Before
any one OF these had been adopted, and with
cut debate or explanation, a section was in
serted in the appropriation Of july Z, 1888, for
the support Of West Point. prOvid ing that all
the money arising from the bequest Of Smith
son should be invested, when received by the
Secretary OF the Treasury, with the appreciation
OF the President Of the United States in stocks
OF States bearing not less than per cent. in
tertst, and that the annual income accruing on
the stock should also be reinvested in the
same way Tor tue increase of the fund
IN compliance with this act the Secretary Of
the Treasury inserted an advertisement in the
Washington Globe on Aug. 6. 1888, asking or
proposals rom those having State stocks 10 dis.
pose Of In answer to this per cent. stocks
OF Indiana were offered al par. IS aud SO; Of
Louisiana. at SO; New York, 1O1; Maine 9s1
AND par; Massachusetts, l04 Kentucky, par.
or 5. per cents, Tennessee 999; OF 81 per
cents, Missouri, l02 and par and of per
cents, Mich gan at par, Virginia par, Illinois,
lO8, aud Arkansas. 80 $40.
The offer Of w. W. Corcoran, the eminent
Washington banker and founder OF the Corcor-
an Art Gallery, of the Arkansas bonds was
accepted and the 100000 worth purchased for
$4,000. Aiterward the Secretary bought S3s..
COO more bonds Of Arkansas. s. $50 of Mich gan.
$56.0OO Of Illinois. and Sic 600 Ohio bonds Not
cent OF the principal or interest Of the Ar
kansas bonds paid.
By the act Of Sept. IL, 1871, passed through
the efforts OF ex-PTesIdent Adams the act Of
July Z, 1895 authorizing the investment Of the
fund In State stocks repealed and the Sec
reiary Of The Treasury was directed 10 invest
the accruiug interest thereafter only in United
States bonds
Meantime Congress was persuaded In 1850 to
pass swamp-iand act, in which all the States
having swamp aud oyer1owed lands were
granted the same, that they might reclaim
them. As years rolled by and euterprising men
appreciated the tide in their affairs which might
lead them 10 fortune. provided they could fozt
the right kind of a bill through Congress it
discovered by these same tide-takers that
the United States bad disposed OF great areas Of
these swamp lands to pioneers
The flood had arrived aud a cash-indemnity
act WAS rushed through Congress, and the rapa-
cious tide-takers BEGAN footing the Treasury,
aud every scheme known TO 18th century
ingenuity was utilized 10 prove that laud was
once swamp, and the State was entitled TO cash