EVIDENCE OF MR. COBB'S CRIMINALTY. The Secretary's Second Letter. guarantee of the States. "I advert to these circumstances to exonerate my self in the judgment of those who have an interest in the discharge of the liabilities pressing upon the Treasury from any want of diligence on my part. 391 Evidence of Mr. Cobb's Criminality. was not a quorum of your Com- | award is a luminous illus- Your Committee, I believe, all understand that more deemed out of the current revenues, and that about two millions more fall due before the 4th of March, less the amount to be paid in for public dues, mak ing nearly the eight millions now required to meet the public wants before that day; that more than one-third of the revenue derived from the customs is paid in Treasury notes due at a future day; and that the present embarrassed state of the Treasury arises from the operation of a paper system which compels the Government to anticipate the payment of its debts out of its current receipts. As I have decided to issue the notice for a loan to-day, I am constrained to request that the bill reported yesterday may not be acted on, as the expectation of a call for a loan at a future day on guaranteed stock could not fail to have a very disadvantageous effect on the proposals to be made for that now asked for. "JOHN A. DIX." The Bids obtained for the Loan. The advertisement, proposing for the loan, appeared in the New York papers of February 18th. It was taken, with unexpected avidity -the amount bid for being $14,355,000, and the bids ranging from 75 to 96-10 per cent. The allotment was: $4.915.000 at 90-15 per cent., and the remainder, (up to the eight millions offered) at figures ranging up to 96-10 per cent. Had the State guarantees been accepted, the average would have been, in all probability, about 96. As it was, it fell below 92-for which the "gentleman from Virginia" had to assume the responsibility. Considering the aspect of political affairs, and the state of the country, that the loan should have been taken at such rates is an incontrovertible evidence of the faith which capitalists reposed in the incoming Administration. Something may have been due to a patriotic desire to sustain the Government, in its hour of need; but, confidence was the secret of the terms obtained. The last loan negotiated by Mr. Cobb was for ten millions of five per cents, awarded on the 22d of October, 1860. The history of that "That on the 22d of October of that year their offers were accepted for a portion of such loan, of which on that day they were notified. "That your petitioners had previously, upon entering their bids, made their deposit of one per cent. and after notice of such acceptance, made a deposit of their premium thereon, and ordered coupon bonds simultaneously therewith, when, to their great surprise and astonishment, they were informed by the then Secretary of the Treasury that his Department had no coupon bonds ready for delivery. "That although your petitioners received notice of the acceptance of their offers on the 22d of October last, no orders reached the engravers in New York to prepare such coupon bonds until the 26th of the same month, being four days after such notice of acceptance, and the first blank coupon bonds did not leave this city for Washington until the 3d day of November, eleven days after the notice of the award. "That in consequence of the delay, orders for these bonds were withdrawn from your petitioners, and even sales made by them, in various instances, canceled by the purchasers, owing to the failure of delivery and in other instances, to retain their customers, your petitioners were obliged to purchase for them United States bonds of 1874 as a substitute for these coupon bonds." Thus much in exposition of Mr. Cobb's way of doing business with Northern men. The petitioners further stated that they were bidders chiefly for other parties-that, in consideration of the non-compliance of the Secretary with his duty in the delivery of the bonds and coupons, the parties for whom they bid refused to take the amount awarded, urging as a justification the following specific reasons, to which the reader's attention is directed: Evidence of Mr. Cobb's Criminalty. 46 "First: In consequence of and the complicity of Mr. Floyd in the further the delay above referred to. frauds charged-was made February 12th. Second: That directly after It covered the entire ground of the facts of the application for such bonds, and the failure of the abstraction, and the incidental transacthe Government to furnish them, the then Secretions by which the fraud was accompanied. tary of the Treasury announced publicly in market, It was a sad revelation for the American peothat in the event of the success of the Republican party in the ensuing election, the Southern States would with-ple to read, and tended to strengthen the draw from the Union, and the Government be broken growing sentiment of indignation against up; whereby the credit of the United States was impaired, and the market value of the bonds depressed; or, in other words, as they contended, the bonds were rendered a damaged article, without fault of the buyers.' As the Presidential election was to be affected by such a representation, we here have the evidence of the Secretary's attempt to influence that election by the strong leverage which ten millions of dollars would give. His representations, it will be seen, were made after the bids had been put in, but be fore the bonds were delivered; and, as the bidders were not served until after the day of election, the retention of the bonds was to cause a panic among the bankers, and compel them to lend all the power of their vast resources to throw the elections in New York and New Jersey against the Republican nominee. When Mr. Toombs said, in the Montgomery Congress, in proposing Howell Cobb for President, [see page 335,] that "he had been illustrious in the arena of the General Government"-that "his name was coextensive with the length and breadth of the whole country" he could not have spoken in irony; and yet, such was Mr. Cobb's reputation in those circles where he was best known, that the great agitator's words were only true in an ironical sense. He, evidently, was valued at Montgomery in proportion to the wrong he had done the General Government and to Northern interests. The report of the House Select Committee appointed December 24th-to investigate the great robbery of bonds, [see pages 113-114,] The Record of the Administration. The credit of Govern- word. We can give but a reference to the lengthy report made by the Committee, of which Morris, (Dem.,) of Illinois, was Chairman. The summary of the investigations was given in the following paragraphs: "In relation to the accept Default. ances issued unconditionally Report on Mr. Floyd's ceptances to the amount of $840,000 were returned Report on Mr. Floyd's Default. REPORT ON MR. FLOYD'S DEFAULT. in his own pocket, and could not, | bankers in New York, who therefore, be negotiated. But were frightened at the this assertion is positively con- amount of these acceptances tradicted by the indorsements on the returned accept 393 Report on Mr. Floyd's Default on the market; and had, at the President's re ances, and by the testimony of Mr. Irwin, a clerk in quest, called upon Mr. Floyd to warn him of the War Department. From the careless and irresponsible manner in which business was transacted by that gentleman and the late Secretary of War, and from the fact that it was the habit of Governor Floyd to issue acceptances at the Department or at his house, or at whatever place he happened to be, and the dangers of this reckless use of his official name. Floyd, two days after the interview, wrote to Mr. Benjamin to thank him for his advice in the matter, at the same time promising to cease from any further issues of paper in advance of work performed by the Utah Army Supply Contractors, Messrs. Russell, Majors, and Waddell. How he kept even this promise the Committee tell us: other consideratious, it is a matter of great uncertainty whether or not the $840,000 should be deducted from the sum heretofore stated. The probability is, that when the acceptances were returned to Governor Floyd by Mr. Russell, he accepted others at "It has already been shown that, contrary to the asthe same time, for the same amount, of which there sertion of Gov. Floyd, no practice of issuing acceptwas no registry made. It is deemed safest to pro- ances had ever prevailed in the War Department ceed upon the supposition that the acceptances previous to its introduction by himself; that he issued made in the place of those returned were registered. these acceptances indiscriminately, and without refeUpon this hypothesis, the $840,000 must be deducted rence to instalments, or the arrival or departure of from the $6,179,395 of unconditional acceptances trains, and without regard to money which was made and registered in the War Department. This due, or which was expected to become due. would leave of them, so far as is shown by the rec- One would naturally expect to find that Governor` ords of that Department, $5,339,395 still in circula- | Floyd, having been admonished by one whose potion. Add to this amount the $798,000 of conditional sition and legal learning gave authority to his advice, acceptances received by Mr. Bailey in lieu of the having confessed the illegality of his proceedings bonds, and the aggregate is $6,137,395. Here, then, and expressed a determination to make no further conforming the statement to the records of the War acceptances, would have proceeded thereafter with Department, is a deficit of $6,137,395 to fall upon the great caution and circumspection, even if he did not holders of these acceptances, or to be assumed in entirely discontinue his previous policy. It appears, some way by the Government. however, that, supposing the note to Mr. Benjamin, before referred to, to have been written a year ago, there have been issued by Governor Floyd, since that time, acceptances to the amount of $2,163,000; in April, $40,000; May, $250,000; June, $350,000; July, $95,000; August, $235,000; September, $125,000; October, $270,000. To this amount must be added the $798,000 of unconditional acceptances of which there is no registry, and the grand total is as above stated. Having had his error and its probable consequences distinctly pointed out, and having expressed his intention to refrain in future from the commission of similar acts, he still persists in his former course, and actually issued an acceptance for $155,000 at a date so late as the 13th of De "The evidence shows that the acceptances have been sold in various parts of the United States, wherever a bank or private individual could be induced to purchase. Inasmuch, however, as the amount of those that have been traced directly into the hands of present holders constitutes but a small fraction of the sum still unaccounted for, and as owners are daily filing additional claims at the War Department, it is deemed unnecessary to give a detailed statement of the discovered acceptances, or to make other mention of them, than to refer to the papers relating thereto, presented by the War Department, and to the general evidence." Mr. Floyd urged, in his defence, [see page 152,] that it had been the custom of the department to issue acceptances for work to be performed on contract; but this proved to be worse than falsification. It had not only not been customary to do so, but, after the President was made aware of Mr. Floyd's "custom," and in alarm had positively forbidden it, the Secretary continued the practice. Mr. Ben Jamin, of Louisiana, had been written to by cember, 1860. Whether this manifest contempt of counsel, disobedience of law, and violation of a solemn promise can be reconciled with purity of private motives and faithfulness to public trusts, is for the House to determine. It is the opinion of your Committee that they cannot." This report, adding certainty to rumor, placed the ex-Secretary in a position of unenviable notoriety before his countrymen. Having been indicted (January 28th) on two Floyd's Disgrace. counts, by the Grand Jury | the courage to “attend to his interests" before of Washington City: first, that Committee. As the chief witnesses exfor malfeasance in office; amined were Mr. Benjamin, Mr. Russell, and and, second, for conspiracy with others to Mr. Bailey-all his friends-the assumption defraud the Government-he found it con- that the hearing was ex parte, and therefore venient to absent himself, and take refuge in unreliable, was simply refreshing for its cool Virginia, under the plea of "attending to her assurance. The testimony withheld by the interests." Having robbed the Government two witnesses last named was, unquestionof millions-having contributed to arm the ably, of a more criminal character than what revolutionists and to humiliate the Adminis- they divulged; but, the facts elicited were as tration, he was well qualified to assume a given in the report, and were not controvertleading part in a drama based upon perjury ed. The "full response" promised by the and deception. Benedict Arnold received absconded principal was given to the world, the gold of the British Government for his a few weeks later, in the columns of a Rich"services," but no honorable Englishman ever mond paper; but, though it asseverated, arwould allow the contaminating touch of his gued, vilified, and invoked the ear of the traitor's hand-if Mr. Floyd was welcomed just, it failed to wipe away the stain which by the conspirators, in his escape from the rested as irrevocably upon his name as the hand of the Government he had betrayed, the moth on door of a tomb. people of Virginia put him away from their hearts, as unworthy of an honorable man's respect. The price of his treason was the overwhelming contempt of his own fellowcitizens. State of the Country, The state of the country at the date of February 15th was one of comparative peace. Excitement consequent on the several acts of secession had given place to Mr. Floyd wrote from his retirement a pro-cared to confess. The dim perspective had a feeling of anxiety for the future, which few test to the report of the Special Committee, saying: Floyd's Protest. "The numerous assaults which have been made upon my character for several weeks past in the newspapers, and which from their source and nature could not be replied to, have at length culminated in a report from the Committee of the House of Representatives, submitted to that body on the 12th inst. The report is an ex parte arraign ment of my official conduct upon ex parte testimony, taken in secret in my absence. It is a labored attempt by innuendo, and by means and circumstances in the absence of proof, to fix upon me some unexpected complicity with a robbery of the Government of which I had no knowledge until about the time it waw publicly disclosed; and now that these charges have been put in form, and have emanated from an authoritative source, I pledge myself to meet them by full response as soon as the report of this Committee, with the evidence taken by it, has been printed, and can be examined. "JOHN B. FLOYD. The fact of its being ex parte was entirely owing to the primary fact that Mr. Floyd absented himself, and found no friend who had no clear light to lure the mind on to pleasant CHAPTER XXX. PROCEEDINGS OF CONGRESS CONTINUED. ELEVENTH WEEK. VIRGINIA SHOWS HER COLORS. INTERESTING RESOLUTIONS. SPEECHES OF FESSENDEN, MASON, KING, CAMPBELL, VANDE VER, DE JARNETTE, AND OTHERS. THE SEVEN SLOOPS OF ᎳᎪᎡ . REPUBLICAN DECLARATION ON SLAVERY IN THE STATES. Seven Steam-Sloops THE Eleventh week of the Thirty-sixth | Government could only obSession of Congress (February 11th-16th)|tain money at large disscarcely sustained the interest excited by the counts, the proposition was previous week's proceedings. The brilliant inopportune and unwise. What, to him, seemspeeches of that week rendered it one of the ed suspicious was the fact that the vessels promost memorable of the session. The week posed were of the class required to enter which followed was distinguished by only Southern waters-ports of the Seceded States. one or two speeches of note. Virginia “showed | He was not willing to vote one dollar for any her colors" most unmistakably, and, for that reason, if for no other, the Eleventh week will be remembered. addition to the navy which looked to the coercion of any State that had seceded. Mr. Fessenden, (Rep.,) of Maine, reminded Mr. Hunter that precisely the same class of vessels, and the same number, had been ree In the Senate, Monday, (February 11th,) a great number of petitions were presented by Messrs. Crittenden and Bigler, for the pas-ommended by the Committee at the previous sage of compromise resolutions. Senator Wade also presented four numerously signed petitions, from citizens of Philadelphia, asking Congress to stand firm by the Union, the Constitution as it is, and the enforcement of the laws. Seven Steam-Sloops The Naval Appropriation bill being called, Mr. Hale, (Rep.,) of New Hampshire, submitted several amendments—one of which embraced the building of seven steam sloopsof-war. session, and that Mallory, of Florida, was Chairman of that committec. Hunter replied that they were recommended by Mr. Mallory because they were of the character and kind required for Southern ports-but, now that all these States had seceded, for whose benefit they were especially designed, there was no propriety in the project being brought forward again without there was a design to use the vessels against those very States. Mr. Grimes, (Rep.,) of Iowa, remarked upon This called up Hunter, (Dem.,) of the absolute requirements of the navy-that Virginia, who wished to know the amount no country was any longer building sailing proposed to be appropriated, and the reasons vessels for naval use-that the cost of the for it; and why, at this time, it is proposed proposed sloops was only about $300,000 each to make this large addition to the Navy?"-that Great Britain had two hundred and Mr. Hale answered that it was a matter seventy-four of the same class of vessels-that recommended by the Navy Department, and the economy of manning and keeping in ser had been urged upon Congress for years. vice of such vessels was so great over that The idea of another sailing vessel being add- required by heavier craft, as to make the ed to the navy was an absurdity. The navy building a matter of actual economy to the thenceforth was to be a steam navy. Mr. Treasury. Upon that ground alone had the Hale then read the recommendations of the measure been brought forward. No "coer Secretary of the Navy on the subject. cion" was proposed by their construction. Mr. Hunter answered, that, in the then embarrassed state of the Treasury, when the After further discussion, which was participated in by Messrs. Hunter, Grimes, Pearce, |