Newspapers / The North Carolinian (Wilson, … / March 23, 1839, edition 1 / Page 1
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EDIT KB AKD - u AS 1. 1 o i it II. Ii. HOLMES. Tkrms $2 50 per annum, if paid in advance; S3 if paid at the end of six months; or $3 50 at the expiration of the year. Advertisements in serted at the rate of sixty cents per square for the first, and thirty cents for each subsequent inser- t3 Letters on business connected with this establishment, must be addressed I. L. Holmes, Editor of the North-Carolinian, and in all cases post-paid. " UEPOitT Of the MINORITY of the SELECT COMMITTEE of the House of Repre sentatives, appointed on the 11th January, 1839, to inquire into the causes and extent of the late defalcations of the custom-house at New-York and other places. Congress of the United States. In the House of Representatives, January 17, 1S39. J "Resolved, That the communication from the President of the United States, of the Sth of December, 183S, relating to the defalcation of the late collector of the port of New-York, except so much as relates to the modification of the revenue laws, be referred to a Select Committee of nine members, to be appointed by the House, by ballot, whose duty it shall be to inquire into the causes and extent of the late defalcations of the custom-house at New York and other places, the length of time they have existed, the correctness of the returns which have been made by the collectors, naval and other officers, and the deposite banks, re spectively, and all such facts connected with said defalcations as may bo deemed material to develope their true character. "Be it further resolved, That said com mittee be required to inquire into, and make report of any defalcation among the collectors, receivers, and disbursers of the public money, which may now exist; who are the defaulters; the amount of defalcations; the length of time thev have existed, and the causes which led to them; and that said committee have power to send for persons and papers." The minority of the committee, appointed un der the above resolutions of the House of Representatives, beg leave to report, That the committee entered on the duties assigned them soon after the passage of the resolutions. At their first meeting and organi zation in the City of Washington, a resolution was offered in these words: "Resolved, That the President of the Unit ed States be requested to cause this committee to be furnished by the proper Executive De partments, with a table showing the defalca tions which have occurred among the collec tors, receivers and disbursers of public money, and other public officers, since the 4th day of March, 1829; the names of the defaulters; the amount of each defalcation; when each case occurred: the length of time each case has existed; what steps have been taken by the proper departments or officers to prosecute the defaulters, and to secure the United States in each case, and what defaulters are retained in the same offices in which they became de faulters, or have been appointed to other of fices." " ' Which, in the opinion of two of the under signed, the thiid not being then present, was unauthorized by the terms of the spirit of the resolutions of the House, whic h are confined to the lale defalcations, and could not be con strued to include defalcations as far back as the 4th of March, 1S29, which had been here tofore reported to Congress by the Secretary of the Treasury, a;.d no action had thrreon by the House. Under this view of die subject, and believ ing it to be the first step to give a laliiudina rian construction to the powers delegated, and which opinion was confirmed by subsequent events, oue of the undersigned deemed it a duty he owed to the House, to offer an amend ment in these words : "To strike out the words 'defalcations which have occurred a mong the collectors, receivers, and disbursers of public money, and other public officers, since the 4th day of March, 1S29,' and insert the words, 'the late defalcations prior to 1S3S, and not heretofore reported by the departments to Congress and the country.' " The amendment was rejected, and the ori ginial resolution adopted. The committee being impressed with the belief that the great object of the House in raising the committee, was to investigate the causes aud extent of the defalcations at the custom-house at New York, deemed it proper to adjourn to that city where the defalcations had arisen, the' witnesses, or actors in the same resided, and the documentary evidence was to be found. In pursuance of this deter mination, the committee assembled on the 24th of January, in the city of New York, and, without loss of time, engaged in the arduous duties of the investigation. At the suggestion of one of the members, whether the committee were to carry on their investigation open to the public at large, it appeared to be tacitly agreed that such a course was calculated to embarrass the committee, as they had no pow er to suppress disorder in case any should arise; but no intimation was given that the proceedings of the committee should be a se cret. In the mean time paragraphs appeared in the newspapers of New York, statiug that the committee sat with closed doors. It was evident, also, from the wide and extended range of the investigation, that many persons were likely to be implicated, both officers of the Government and private citizens. The undersigned believed that the committee, though a select committee, was not a secret committee; that the House, when it passed the resolutions, never intended the proceed ings of the committee to be kept secret; that justice required that prompt and early notice should be given all persons accused ; and the charge should be made in a public manner, the accused confronted with the accuser, and that secret inquiries were unknown to the constitution, aud alien to the practice and feelings of the American people. The mino rity of the committee entertaining these sen timents, and not knowing the views of the majority upon this interesting subject of se crecy, and finding, though other persons were excluded, two or three witueeses at one and the same time were admitted into the com mittee room, thereby subjecting the proceed ings of the committee to misrepresentation, and the action of individual members in ssi is. pic ion and calumny, deemed it proper to bring I mm m "Character is as important to States, as it is to individual..; mill tlie glory of the State, is the common property or its citixetis. Vol. I. the subject before the committee in a substan tive form, aud to call for a distinct expression of opinion, by proposing the following resolu tion : "Whereas all proceedings of an inquisitori al character, and conducted in secret, are at variance with the principles of Republican Government, and abhorrent to the feelings of the American people: "And as justice demands that all persons, whether they be officers of the Government or private citizens, who, in the course of this in vestigation, may be implicated or charged with official misconduct, or being concerned in aiding or abetting such misconduct, should have immediate and jyrompl notice oj the charge, so that if innocent they may repel it; and that, whatever may be the nature of the charge, it is but reasonable and just that the same be publicly brought forward aud publicly answered: "And as the members of the committee have no reason or desire to disguise or con ceal from the public view all or any of its act ings and doings in the exercise of the deli cate and responsible commission imposed on them; to the intent, therefore, of having no misunderstanding on this subject, "Be it resolved, That it is' the opinion of this committee that, though a select commit tee, appointed by the House of Repscscnta tives of the United is not a secret committee; that though invested with the power of inqui ry, as contained in the resolutions of the House, that power ought to be exercised in an open and public manner; and should be not only free from auy direct charge of conceal ment, but from the ren.Giest suspicion of it. "And be it further resolved, That ail ui proceedings of this committee shall be open aud public, as being the mode, in the opinion of this committee, best calculated to attaiu the ends of justice, to satisfy the just expectations of the people, and to protect the rights and privileges of American citizens." Which, after an amendment offered, were all finally laid on the table, to the astonishment and mortification of the undersigned, and no doubt to the surprise of the people of the U. States. Under these extraordinary circum stances:, the proceedings of the committee be ing secret or public, according to the judg ment, discretion, or caprices of witnesses or members of the committee, the investigation was carried on. Numerous witnesses were examined as to the extent of the defalcation. The undersigned will not go into a detail ed statement of the heads or items, such as forfeitures, penalties, bonds, &c, upon which Swart wout based his speculations, but refer the House to the journal of the committee. They will simply remark that the bond itm gave the facility and laid the foundation of the principal part of the defalcation. These pe culations commenced at an early period of Swaitwoufs official life, and went on increas ed aud increasing until its close. The art and management with which they were concealed will attract attention. One occurrence re ferred to in the testimony is not the least re markable in this extraordinary affair. When Swartwout, in 1834, was re-nominated by the then President of the United Slates, the no mination was referred, as usual, by the Senate, to a committee, which committee was com posed of a majority opposed to the then Ad ministration. In the investigation of Swart woufs accounts before that committee, sus picion arose that he was in default. Mr. Shultz, the then auditor of the custom-house, a witness examined by this committee, was called upon by the committee of the Senate to aid them in the examination, and to give them information in regard to Swartwout' s accounts; and after, it is presumed, a thorough investi gation, the committee reported favorably to the Senate, and the appointment was confirmed by the then existing Senate, composed of a majority of Senators opposed to the Adminis tration, though there was at this time a defal cation to a considerable amount, known to Mr. Shultz, but not communicated to the com mittee of the Senate, as will be seen by re ference to the following questions and an swers: "Question 26. Did you know, when you were before the committee of the Senate, in 1834, that Mr. Swartwout had not paid over to the cashier the sum of more than 3U,000 dollars, received by him for forfeitures? "Answer. I knew that Mr. Swartwout had at that time more than 30,0U0 dollars for for feitures, which he had not paid over to the cashier. "Question 27. Did you inform the com mittee of the Senate, or any officer of the Treasury Department, that Mr. Swartwout had not paid over the money received by him for forfeitures? And, if not, why? "Answer. I did not; because I did not think it my duly. Question 33. Why did you not regard it as your duty to inform the Secretary of the Treasury, or the committee of the Senate, that Mr. Swartwout had not paid over the money received from the marshal for forfeitures? "Answer. Because we clerks of the custom house consider ourselves as in the service of the Collector, and not in the service oj the U. Stales. The collection law does not seem to regard the clerks of the collector as in the ser vice of the United States, as the markers and weighers, &c. who are appointed by the Trea sury Department We have always thought ourselves the private assistants of the collec tor. It was my duty to render the accounts iruly, and credit the United States truly, as I did; but not to inquire into the private trans actions of the collector." These answers afford a valuable instance of custom house morality and patriotism. That the defalcations should have been so long concealed from the Department and the public, though at first a matter of surprise, will create no great astonishment when Mr. Shultz's testimony is considered. The manner of keeping the accounts in the custom house was calculated to effect the ob ject of concealment. The auditor of the cus- FAYETTEVILLEf SATURDAY, MARCH 23, 1839. No. 4. torn house, and the naval officer, intended as checks upon the collector, were kept in total ignorance as to the true state of the accounts; and, as the Treasury Department depended on their statements, it was equally ignorant. Two of the witnesses, Ogden and Phillips, cashier and assistant cashier of the custom house, say they frequently made no entry at all in the cash book, of moneys abstracted by Swartwout for his private expenses. hen bonds were paid no credit was given for them. The cash book being in the possession of these individuals, they furnished such state ments to the auditor as suited their purposes, and concealed the accurate and true state of the account. Some effort was made in the course of the investigation tffcshow that Swiirt wout always made to the Defrartmcutat Wash ington true and accurate statements of the aggregate amount of his accounts, and there by drawing an iufercucc that, if they had been carefully examined, the defalcations could soon have been detected. The undersigned, are of opinion such is not the fact, and that it. was scarcely possible, under any circumstan ces, to make the detection iu any other man ner than by the personal inspection of the bonds and the books of the custom house. On this branch of the subject we beg leave to re fer to the testimony of Mr. Woodbury and the First Auditor at W ashington, as contained in the journal. Mr. Fleming, the auditor at that time, and now auditor of the custom house, a very respectable aud intelligent witness, testifies that he had suspicions in June, 1S37, that there was a deficiency iu the bond account. He communicated the suspicion to Mr. Phil lips, the assistant cashier, who auswercd hi in In a very laconic manner, "that credit was given in the cash book for all the'oonds int were paid; the rest were in suspense." He also states, that though the accounts of Sw art wout, transmitted to the department at Wash ington, contained a true aud accurate state ment of the aggregate amounts, there was a deficiency and concealment of the true cosh balance, as was afterwards discovered by the examination of the cash book of the custom house, in a sum exceeding 6ov,l.-00 dollars. In this manner the fraud carried on was kept secret. Mr. Fleming also states that, but for the suspension of the payment of the bonds, and specie payments by the banks, the frauds could not have been carried on without ex citing suspicion and loading to detection. Great credit is undoubtedly due to the pre sent collector and auditor of the customhouse for making the discovery as early as it was made. The urgency of the former to have his accounts settled aud prepared for transmission to Washington, iu a great degree produced and hastened a developeinent. But for this circumstance the combination and conspir-?v existing in the custom house to defraud the govern rae ut, would have bad the effect to con ceal it a much longer lime. , It mav be confidently asserted that under the existing laws, and, indeed, under any safe guards that may be establish, d to protect the public purse, without honor and integrity in the public office, it may and w ill be plundered, and the fact concealed for a considerable time without the possibility of discovery. The business of the custom house at New York is so various and complicated, that un der the provision of the act of Congress, the collector is allowed three months alter the ex piration of each quarter to make his returns. Frequently from necessity this time has been extended to four mouths. Two or three months arc consumed in the Auditor's and Comptrol lers offices at Washington, in auditing and settling these accounts. Until this is done the defalcations cannot be certainly known, so that they may be concealed from five to seven months, and that under the operation of the law. By reference to the journal it will be seen that there is some discrepancy in the testimo ny on the subject of the extent of the loss. Most of the witnesses agree that the amount of defalcation corresponds with the statements heretofore made by the officers of the Govern ment who were sent to New York, at or im mediately after the same was made known, and whose reports have been submitted to the House. The witness Mr. Shultz, before alluded to, former auditor of the custom house, and who for a long period of time filled that station, re duces by his testimony, the amount in a con siderable degree. The House has before seen what reliance should be placed on the evidence of Mr. Shultz. As additional evidence of the confidence to be given him, the journal is re ferred to where Mr. Shultz states: the weekly returns made to the Secretary of the Treasury, under the regulation of the department, in cluded the items of forfeitures and penalties, and which, in his opinion, would have enabled the Secretary in fifteen minutes to have detect ed the defalcation, so far as these items are concerned, though testified to wifh great confi dence, and with an apparent knowledge of the act, is totally disapproved by the chief clerk of the Treasury Department, and the documen tary evidence derived from that department, to wit: the weekly returns themselves. Mr. Shultz is also a very aged man, infirm in body and mind, and, like most old persons, better able to give a clear and distinct account of trans actions of long standing than recent occur rences. But whatever may be the accurate amount? the ostensible sum total, established by un questionable testimony, is very large. The actual or real amount however, lost to the Go vernment, concerning which no information can be obtained, it is impossible to say, and can be only a subject of conjecture. One fact brought forth by the investigation, is of a remarkable character, and deserves a notice. Mr. Thompson, the cashier of the Bank of America, then one of the deposite banks, states that checks of different amounts some for very large sums, were indiscrimi ' nately drawn by Swartwout, or his deputies, and paid by the bank. This practice, danger ous at all times to the Government and the collector, was peculiarly hazardous under the administration of the late collector, whose bu siness habits did not qualify him for a strict scrutiny into the fiscal affairs of his office. By it an opportunity was afforded and temptation given, to peculation in the custom house. The causes which combined to produce the dcfalcat ion are various. The first was the unfortunate appointment by the President and confirmation by the Se nate, for two successive terms, of a man like Swartwout, who, from habits and pursuits, wps totally disqualified to discharge the duties of collector at New York; a port the most import ant in the Union, and where one-half, if not two-thirds, of the revenue of the Government is collected. The second, the disposition of Swartwout to engage in large and hazardous speculations; a passion the most lasting in its excitement, and most disposed to increase by the food it feeds on. And in an officer of the Govern ment, intrusted with large sums of money, the most dangerous in its operation upon him as an individual, as well as the Government. There is much testimony on this head. Some of the witnesses,, best qualified to judge, the brokers of New York, state iu technical lan guage, he was a great operator iu stocks in Wall street. Swarwout sometime winning, at others losing, large sums of money. The evidence as to loss or gain, is by no means satisfactory. The third cause which contributed in some degree, was the want of a regular and periodi cal examination of the bond account in the Auditor's office in W ashington. One of the witnesses, aud a clerk in that bureau, says the bend account, prior to the defalcation, had not becu examined since 1S32. Before that time, it toad been the practice in the office. Why it was abandoned we know not, unless from an opinion it was not necessary, or that there was not a sufficient number of cler"k to discharge the duty, at all times very onerous, there being, at a moderate calculation, not less than thirty thousand bonds taken a year in New York alone. But whatever may have produced the abandonment of the practice, it was calculated to lead his successor in office into error. That successor would naturally follow the prac tice existing at the time in his bureau, as the one adopted from experience, aud found to answer the public exigencies. No blame can, therefore, be attributed to the present First Auditor, he having been, previous to these oc currences, but a short time in office, aud of course not well qualified to judge of the prac tical utility in this particular branch of his du ty. On this subject we beg leave to refer to his testimony as contained in the journal. The fourth cause, was the non-execution of Swartwout's official bond for a great length of time after his last appointment in 1S34. The bond bears date in 1831, but remained in the custom house unexecuted Until 1837 when it was certified by the district attorney of New York, Mr. Price, and die Comptroller at Wash ington. For nearly three years, no bond of the collector of INew York, the principal port in the Union, was in the Comptroller's office, and (he collector was left to carry on the great fiscal operations of the custom house without any security, except that based upon his own responsibility. As to the sufficiency of the security afforded the Government by the bond when executed, that is a subject not suscepti ble of positive proof until tested by legal deci sion, and must remain a matter of speculation and opinion.. Snonld the security in the bond be hereafter found insufficient, it will be attributed to Price, the district attorney of the city of New York, where the sureties resided, aud who, before he certified the bond, did make, or ought to have made, the necessary inquiries as to their pe cuniary responsibility. The bond, though executed at so late a pe riod, will protect the Government as far as the amount extends, a urc portion of the defal cation having taken place after its execution, and therefore embraced by it. It is true, little security will he afforded by it to the Government, when the penal sum, contained in the bond, is compared with the large amount of the defalcation; and hac- a regular account of the bonds been kept in the Auditor's office, there is very strong aud con clusive testimony to show it would have neith er prevented nor detected the defalcation. The bond of Swartwout not being executed and deposited in the office, nor any entry of his appointment as collector made by the Comptroller of 1S34, was such a want of offi cial diligence as no one ccild have supposed or anticipated, and could not have excited any suspicion iu the mind of his immediate suc cessor, (not the present Comptroller, who came into office after the discovery of these defal cations,) so as to induce him to order an ex- aminalion. He took it for granted the usual course had been pursued in relation to Swart wout's appointment and bond. The neglect therefore, of the former Auditor and Comptrol ler, in these particulars, is strange and unac countable. The only excuse for it is to be found in the fact, a short time anterior to these occurrences, and long before, the heads of these bureaus were two aged men, incapable, from physical and mental infirmities, to discharge the duties imposed on them with the diligence and strict supervising attention that these important offi ces demanded. The evidence on the journal on this subject is very strong. The retention of aged persons in office, who have grown old in the service of the State, is an evil iucident to all Governments, and more particularly to our democratic one. To dismiss an officer under such circumstances is a harsh measure, and well calculated to shock the feelings and enlist the sympathies of the people. To re tain him when incapable of " performing his functions is dangerous to the security of the public treasure, and injurious to the best in terests of the people. Better would it be to let the civil officers of Government, who have faithfully discharged their duty for many years, ctire, at a certain designated period of life, upon a pension, than to have them remain in office but the shadows of themselves.- Upon the principle of economy alone, so dear, to the American people, the course suggested ivould be highly advantageous to thd-cbuntryv : The fifth cause was the irregular and loose manner in Which ths whole business of the custom house was Conducted, and which has berfh adverted to before in this report, and frcin the fact that the naval officer, who, under the laws, was intended as a check upon the collector, has not, in the execution of his functions, supervised the accounts with that care and diligence the importance of the sub ject demanded. The sixth cause is to be found in a practice grown up of late years; the keeping by the col lector what is termed a suspense account, un der which head he retains large sums of mo ney to meet protests and suits upon duties over-paid, &c. and which, for his own securi ty, he is in a great measure compelled to re tain, the courts of justice having determined in such cases that he is personally liable. W hether these decisions are founded on true and just principles and national policy, the undersigned will not undertake to decide, but they may be permitted to remark, the sooner there is some legislative action on this sub ject, the better for the country and the collec tors. The seventh cause v.as the convulsion dnd total derangement produced iu the business of the custom house by the suspension of the pay ment of bends by Government, and the sus pension of fpecie payments by the banks. The amount of bonds operated upon by these causes arc contained in the answers of Mr. Woodbury in these words: "Question 37. What amount of bonds were due or running to maturity a short time before, at the the time, and during the time of tlie convukioa jtrcduced by the suspension of specie payments by the baris, and coming under the instructions of the So licitor of the Treasury in May. 1837. "Answer. In reply, I would state that the. amount of bonds falling due betvreen the first of May and the first of October 1S37, in the United States, was probably from fire to six millions. I have not examined to see the e. act amount. But of those some were put iu suit, and neither paid nor postponed under the instructions of the Solicitor in Mav, 1S37; and others were paid without suit or postpone ment; so that the amount postponed under these instructions were estimated to bo not far from four millions of dollars. 'Qestion. What amount of bonds came under the provisions of the acts of Congress of 1837; the one produced by the fire in New York, aud the other produced by the suspen sion of specie payments by the banks? "Answer. Iu reply, I state that the post ponements actually made under the two acts in October, as to former bonds and mer chandise on which cash duties had accrued, are estimated to have been from four to four and a half millions. The amount coming w ithin the operation of relief asked and grant ed on account of the fire, is supposed to have been about $1,063,000." As also to the following question "Question 1 Please state, should a com bination exist between the district attorney and the collector to defraud the Government, by placing bonds which have actually been paid in his weekly account, transmitted to your department under the head of bonds sus pended or bonds in su it, if there are any means in your power, as Secretary of die Treasury, to make the detection, except by personal in spection and examination of the bonds at N. York?" Mr. Woodbury answers in the negative find gives his reasons in exlenso, as will be seen by reference to the journal. The suspension of specie payments by the banks, so sudden and unexpected, at a period of profound peace, and under the appearance of great uational prosperity, was well calculat ed not only to derange the business of the custom house of New York, but did convulse the whole trade of this country, and iu its con sequences affected that of those States or Kingdoms with -whom we had commercial relations. A contingency so extraordinary could not have been anticipated, and conse quently diere were no existing laws to protect the Government from its baneful effects By rendering the acts of Congress in rela tion to the safe-keeping of the public money a dead letter, it made the banks cease to be the depsitorics of the public money, took away the authority of the department to receive their paper in payment of public dues, and from ne cessity threw the payment of the bonds into the customhouse, and into the hands of Swart wout and hisagenls, uncontrolled by any le gislative provision, or any other safe-guard that would otherwise have been provided to protect the public purse. It may be, and no doubt will be said, that notwithstanding this act of the banks, if their paper had been received by the Government, aud the bonds still paid in the banks, the loss, or a greater part of it, would not have been sustained. The undersigned will not under take to decide what would have been its ulti mate effect. The legality and propriety of such a mea sure, as an act of the Government, is submit ted to the good sense and intelligence of the American people. The reason for the Secre tary of the Treasury not adopting it, is to be found in the acts of Congress, and the prac tice of the Government founded thereon, which prohibit the officers of the revenue re ceiving in payment any thing but gold or sil-. ver, or its equivalent. The Secretary of the Treasury was not warranted, by law, to . re-. ceive the paper of these banks. If be had done so, he would have been liable to im peachment; and, from the known temper of the times, would, in all probability, have been impeached. If authority to receive such pa per had been given, it would have been not only a violation of the laws of the land, but disreputable to the officer and degrading to me. country. It would have had a tendency to give official countenance to this act of the banks so unjust and highly injurious to the interests of the people, aud calculated to fix a stain on the national character. If an option had been left him, he could not, as a public officer and a patriotic man, have hesitated in looking to, and beholding on this great emer gency, to the individual responsibility of the bondsmen, rather than receive the paper of banks, which had taken the law into their own hands, had legislated for themselves, aud them selves alone, and had violated the obligations of their charters, and the faith pledged to the public. This cause', therefore, opened a field for those engaged in the frauds and specula tions by placing the money of the people in the hands of Swartwotrf and his subordinates: uncontrolled by law, and was seized upon to carry on a most dariug system of robbery and plunder. By reference to the testimony, it will be seen the large defalcation occtirrcd on the bondaccount.and in the first and second quar ters of 1S37, a short time prior end subsequent to the suspension of specie payments by the banks. The bond account, however, had been deranged, no doubt, in a very considerable degree, before 1837, by the renewal of bonds, under the acts of Congress, occasioned by the fire inN. York, and the advantage taken of it. The eighth cause, and one of the principal, was a combination of unprincipled officer in the custom house, to defraud the Government and plunder the people. Without this combi nation, Swartwout could not hate concealed his frauds a dsy-"-certaialy not a week. That men of former g60d character and standing in society should have entered into the con spiracy, aiding end abetting Swartwout in his peculations of the public purse, is a subject not only of deep mortification, but a national disgrace.- It k a remarkable instance of the corrup tion of the times in which we live. It becomes still more remarkable from the fact, that one of the men, (Phillips, the assistant cashier of the custom house,) so aiding Swartwout in his peculations, when examined as a witness, and the question propounded to him by a mem ber of the committee, "why, knowing as he did, Swartwotit was defrauding the Govern ment, he did not give information to the Trea sury Department?" answered with great cool i .--as end Composure, in conformity with the curdom hovss practicet and the reason given for ii by Mr. Shultz, "that he was the clerk of Mr. Swarfcvcitt, and did not like to disclose the secrets of his employer" Apparently con sidering as a virtue his fidelity to a public officer who, with the witnesses' co-operation and active agency, was defrauding the people. These deteloprnents, and the inferences -tura'ly eifattn from them, must irresistibly leau the House to the conclusion, that the safety of the public money, imperiously demands that no officer of the custom house, connected with its fiscal concerns should be appointed by the collector himelf; but should receive the ap pointment from the Government, and give his sole allegiance to the country. Other causes, not known, may, and no doubt did, contribute to produce the defalca tions. The subject nretter, however, both in relation fo the extent and the causes of the defalcation, is still Involved in some uncer tainty. The character of the testimony is more than doubtful. Some of the witnesses, aud those best acquainted with the facts, were active agents, if not participators, in the frauds: the fountain therefore, from which we derive our information, or the greater por tion of it, is impure and defiled. No reflec ting man, acquainted with the operations of the human heart, and the springs of human action, will or can place much reliance in tes timony thus characterised and stamped with the impress of fraud and profligacy. Each man and the House collectively will give ere dence to it according to the degree of creduli ty he or they may possess; and, at last, a great deal must depend, like the mysteries of our holy religion, upon the faith of the individual searching for truth. This disposition Swartwout made of these enormous sums abstracted from the public coffers is an enigma not easily solved. 1 Tie evidence furnishes no clue to it. The incon siderable sum left in the hands of Ogden, and the value of the real estate indifferent parts of the Union, form but a very inconsiderable item on the credit side of the account; and some of the witnesses say Swartwout is now a needy man. That he should have been possessed of so little property can only be ac couutcd for on philosophical principles, and the natural operation of the human mind. Money thus acquired is not long retained. It is soon dissipated in extravagancies that leave no trace hehind him. Much credit is due to Mr. Hoyt, the pres ent collector of New York, and the Solicitor of the Treasury, through whose instrumentali ty the money in Offdeu'g hands, and the se curity afforded by the real estate, were ob tained. The money, as Ogden testifies, was intend ed by Swartwonvfor other purposes and would have been so applied, but for the sudden arri val and nriYrwetfd and vionrnns nnnlirntinn i -o ri of the Solicitor of the Treasury to him, as agent of Swartwout; to pay the same to the United States. During the progress of the investigation, and before it had closed in relation to Swart wout, a member of the committee submitted the following resolution: "Resolved, That Mr. Hoyt, the collector, be required to furnish this committee with all letters to and from the Treasury Department and the collector of the customs at New York; ami also all orders and instructions from the Treasury Department to said collec tor, since tne nrst day ot January, 1S37, up to the present day; and the answers of said collector, it any, to said orders and instruc- turns, not already turmsned to tins com mittee." ; - - m..'- i rt i i ? a Tn PAmmnlM t ttio otithAritv rnntai nml in tho .n - o . . a s sirnu ui iiiiiiiii v- iirin auiiLiuaicu si v 1 1 House or the country. One of the under signed, therefore, moved the following amend ment: "Provided, The said letters, orders, and instructions have reference to the late defal-
The North Carolinian (Wilson, N.C.)
Standardized title groups preceding, succeeding, and alternate titles together.
March 23, 1839, edition 1
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