CHAPTER XXIX.

THE TREASURY. ITS CONDITION IN FEBRUARY. THE TWENTYFIVE MILLION LOAN. GUARANTEES OF THE STATES. HOWELL COBB'S CRIMINALTY. THE HOUSE REPORT ON FLOYD'S CASE. STATE OF THE COUNTRY

THE

EX-SECRETARY'S DISGRACE.

FEBRUARY 15TH.

The Twenty-five
Million Loan.

THE financial condition January 18th he sent to Financial Condition of of the National Treasury, in Mr. Sherman, Chairman of the Treasury. the early part of February, the Committee of Ways and was such as to excite no little uneasiness in Means, an exhibit of the state of the Treasthe mind of the Secretary. Of the twenty-ury, and asked for twenty-five millions of million loan authorized the previous June, but a little more than seven millions had been taken. Mr. Cobb's financiering had shaken the credit of Government so far, that its paper not only no longer commanded a premium, nor even touched par, but was only disposed of at ruinous rates. The act authorizing the loan restricted its sales at par, and capitalists refused to take it. This refusal left the department nearly bankrupt, at the moment of Mr. Cobb's withdrawal, " to lend the force of his great financial genius to the construction of a new Government." He assumed the keys of a plethoric chest-he left the keys of an empty one.

dollars to meet the wants of Government up to June. February 1st, Mr. S. introduced, in the House, his Loan bill, calling for twentyfive millions. The representations made, and the good management used, crowded the bill through without delay. February 2d it went to the Senate, which returned it to the House slightly modified. A conference soon consummated its final passage, but it did not receive the President's signature until Feb. 9th.

Pending its passage, Mr. Dix had addressed the Governors of the loyal States, advising that the Legislatures should endorse the loan to the extent of the special deposits held by them of the surplus fund. To this propoMr. Dix, upon assuming charge of the sition several States answered promptly—the Treasury Department, set about recuperating loyal-hearted Ohio being first. She, holding its exhausted finances. He was chosen for $2,097,000 of that fund, would guarantee the his fitness. In that hour of calamity, it be- Government loan to that amount. Pennsylhooved the President to call to his side men vania next voted to endorse for her quota of reputation for integrity, who would, in -$2,800,000. These endorsements were not, some degree, restore the confidence of an out- however, accepted by the terms of the actraged people. Devotion to "Southern inter- hence the loan went forth offering only the ests" had ruined his Administration, and he Government's faith as security. This so far could only save his memory from being writ- weakened the prospect for favorable bids, that ten Odious by rising above a partisan's ambi-Mr. Dix sought to obtain a special act authortion at the last hour. Mr. Dix, as the representative of Northern sentiment, and having the confidence of the magnates of Wall street, was a wise choice; and if the brief period of Mr. Buchanan's term would not allow of a full restoration of public credit, it would, at least, permit him to stay the decline which threatened a fatal issue.

izing the acceptance of the proffered State guarantees, to the extent of the eight millions first to be put on the market. In possession of these, he felt that the offers would be of a very satisfactory character. He communicated his wishes in the matter to Mr. Sherman, under date of February 12th, in the following exhibit:

For Fishing Bounties....

1,803,000
501,423
73,220
485,522

"I have discharged my duty to them and to the
country, by making this exhibit of the public wants,
and in pointing out the only mode by which, in my
judgment, they can be met without the most serious
consequences to the interest of the Government, and
individuals to whom it is indebted. The short time
to elapse before the close of the present session of
Congress renders it indispensable that I should
advertise for a loan on the 13th or 14th inst., at the
farthest.

"I am, very respectfully, your obedient servant,
"JOHN A. DIX,

"Secretary of the Treasury."
Mr. Sherman immediately introduced a
bill covering the acceptance of the guaran
tees, when Garnett, (Dem.,) of Virginia,
refused, by his objection, to allow the intro-

NOTE-These are the round numbers, making a total of duction of the resolution of enactment. His

$9,901,118.

"The accruing revenue will, it is estimated, net about $1,900,000 of the amount, leaving but eight millions to be borrowed.

words and demeanor were violent. He said:
"After the recent declaration of war by
the President-elect of the United States,

"There is in the Treasury, subject to draft of the [referring to Mr. Lincoln's Indianapolis

Treasurer of the United States, but little more than half a million, and there are requisitions in the Treasury Department amounting to nearly ten millions of dollars unanswered. In the present condition of the country it would be impossible to borrow the money needed to meet the wants of the Treasury, unless at a discount which would seriously impair the public debt, without some pledge in addition to that of the faith of the Government. Several of the States, in accordance with a suggestion contained in my letter to the Committee of Ways and Means, of the 18th January last, have offered to superadd the pledge of their faith to that of the United States, for the redemption of any bonds it may issue, to the amount of the public moneys deposited with them, respectively, for safe keeping, under the act of 23d June, 1836.

"If Congress will authorize these offers to be accepted, the money required to meet the liabilities due and to fall due before the 4th of March can be obtained at par. If the authority is not granted, I am satisfied it can only be procured on terms which would be exceedingly disadvantageous to the Government, and in the highest degree detrimental to its credit. I should not venture to ask for a loan exceeding $2,000,000, and nearly the whole of this amount would be required to meet the redemption of Treasury notes to fall due before the 4th of March. There would be due on that day about $6,000,000 to public creditors, whose demands could not remain unsatisfied without subjecting them to most serious inconveniences, and in some cases to serious losses.

speech -see page 373,] I deem it my duty
to interpose every obstacle to the tyrannical
and military despotism now about to be in-
augurated." Mr. Dix again wrote, under
date of February 13th, to warn the Commit-
tee of what must be the result of the refusal
to sanction the acceptance of the State guar-
antees. He said:

The Secretary's
Second Letter.

"SIR-It is indispensable that I should give to-day notice of a loan of $8,000,000, in order that the Government may be in funds to meet indispensable payments on the 1st proximo.

"The obstacles unexpectedly thrown in the way of the passage of the bill reported by your Committee yesterday, authorizing the acceptance of the guar antee proffered by several of the States, compei me reluctantly to ask for the loan on the usual terms; for, in the present distracted state of the country, should it continue, I fear there must be a loss of $500,000. Under all the circumstances, however, instead of calling for $2,000,000, as I suggested in my letter to you of the 11th inst., I have thought it advisable to ask for $5,000,000, reserving the right of declining to accept bids which may be deemed disadvantageous to the United States, and taking the chance of a favorable change in the political condition of the country within the next ten days, at the end of which proposals for the loan will be received. Allow me to remind you that the Loan bill, under which I ask for proposals, was not presented for the approval of the President until the 8th inst.; and that, on the 9th inst. Saturday, there