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Report on Mr. Floyd's Default.

REPORT ON MR. FLOYD'S DEFAULT.

ances, and by the testimony of Mr. Irwin, a clerk in the War Department. From the careless and irresponsible manner in which business was transacted by that gentleman and the late Secretary of War, and

393

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 accepton the market; and had, at the President's re quest, called upon Mr. Floyd to warn him of 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 prom-. ising 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:

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

other considerations, 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 the same time, for the same amount, of which there was no registry made. It is deemed safest to proceed upon the supposition that the acceptances made in the place of those returned were registered. Upon this hypothesis, the $840,000 must be deducted from the $6,179,395 of unconditional acceptances made and registered in the War Department. This would leave of them, so far as is shown by the records of that Department, $5,339,395 still in circulation. Add to this amount the $798,000 of conditional acceptances received by Mr. Bailey in lieu of the bonds, and the aggregate is $6,137,395. Here, then, conforming the statement to the records of the War Department, is a deficit of $6,137,395 to fall upon the holders of these acceptances, or to be assumed in some way by the Government.

"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."

"It has already been shown that, contrary to the assertion of Gov. Floyd, no practice of issuing acceptances had ever prevailed in the War Department previous to its introduction by himself; that he issued these acceptances indiscriminately, and without reference to instalments, or the arrival or departure of trains, and without regard to money which was due, or which was expected to become due. One would naturally expect to find that Governor Floyd, having been admonished by one whose position and legal learning gave authority to his advice, having confessed the illegality of his proceedings and expressed a determination to make no further acceptances, would have proceeded thereafter with great caution and circumspection, even if he did not entirely discontinue his previous policy. It appears, 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

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."

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," This report, adding certainty to rumor, and in alarm had positively forbidden it, the placed the ex-Secretary in a position of unSecretary continued the practice. Mr. Ben-enviable notoriety before his countrymen. jamin, of Louisiana, had been written to by Having been indicted (January 28th) on two

Floyd's Disgrace.

counts, by the Grand Jury of Washington City: first, for malfeasance in office; and, second, for conspiracy with others to defraud the Government-he found it convenient to absent himself, and take refuge in Virginia, under the plea of “attending to her interests." Having robbed the Government of millions-having contributed to arm the revolutionists and to humiliate the Administration, he was well qualified to assume a leading part in a drama based upon perjury and deception. Benedict Arnold received the gold of the British Government for his "services," but no honorable Englishman ever would allow the contaminating touch of his traitor's hand-if Mr. Floyd was welcomed by the conspirators, in his escape from the hand of the Government he had betrayed, the 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.

Mr. Floyd wrote from his retirement a protest to the report of the Special Committee, saying:

Floyd's Protest.

numerous

assaults

"The 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 at

tempt 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.

"February 13th, 1861."

"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

the courage to "attend to his interests" before that Committee. As the chief witnesses examined were Mr. Benjamin, Mr. Russell, and Mr. Bailey-all his friends-the assumption that the hearing was ex parte, and therefore unreliable, was simply refreshing for its cool assurance. The testimony withheld by the two witnesses last named was, unquestionably, of a more criminal character than what they divulged; but, the facts elicited were as given in the report, and were not controverted. The "full response" promised by the absconded principal was given to the world, a few weeks later, in the columns of a Rich mond paper; but, though it asseverated, argued, vilified, and invoked the ear of the just, it failed to wipe away the stain which rested as irrevocably upon his name as the moth on door of a tomb.

The state of the country at the date of February 15th was one of comparative peace.

State of the Country, February 15th.

Excitement consequent on the several acts of secession had given place to a feeling of anxiety for the future, which few cared to confess. The dim perspective had no clear light to lure the mind on to pleasant depths beyond. Ghosts of a buried greatness seemed to flit in the gloom gathering around. Voices of the illustrious dead seem ed to breathe upon the very air of the room where men brooded over the destruction which threatened the Republic. Shadows formed, and melted but to form again, making pictures which made the soul sick-pictures of men in deadly conflict, of burning houses, of suffering women and beggared children, of a capital sacked and ruined, and a land in desolation. These were the visitants to the fireside of every thoughtful citizen; and if there still was a struggle for compromise, it was to appease treason in order to avert the greater terrors of a state of civil war. But, as men suffer and grow strong, so the quiet of February was silently preparing the souls of those made to lead for the great emergencies to come. Out of that ordeal of internal personal struggle came the hearts of fire and nerves of steel which were to save the Republic when the trumpet called her sons to her defence.

CHAPTER XXX.

PROCEEDINGS

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VIRGINIA

SPEECHES

OF

CONGRESS CONTINUED.

ELEVENTH WEEK.

SHOWS HER COLORS. INTERESTING RESOLUTIONS. OF FESSENDEN, MASON, KING, CAMPBELL, VANDE JARNETTE, AND OTHERS. THE SEVEN SLOOPS OF WAR. REPUBLICAN DECLARATION ON SLAVERY IN THE STATES.

VER, DE

Seven Steam-Sloops
Provided for.

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 addition to the navy which looked to the reason, if for no other, the Eleventh week will coercion of any State that had seceded. be remembered.

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
Provided for.

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.

The Naval Appropriation bill being called, Mr. Hale, (Rep.,) of New Hampshire, submitted several amendments—one of which embraced the building of seven steam sloops- Mr. Grimes, (Rep.,) of Iowa, remarked upon of-war. 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,

to 18.

Mason's Speech in
Opposition.

Fessenden's Defence.

and Polk, the amendment was adopted-30 | terests of the Government. And if I can no longer do that, I will leave my place here and return to my State, and say I am at its service. Now, sir, how do we stand as Senators-we who remain, whose States have not seceded? We look on these facts, remarkable as they are, as taking place outside

When the bill was reported to the Senate, on its passage, a discussion followed of an interesting character. Mason, (Dem.,) of Virginia, spoke against the special amendment proposed. He referred to the depressed state of the Treasury, remarking that Government was in an actual state of destitution. For what, then, were these additional expenses to be incurred at that particular moment? He could not shut his eyes to the fact that seven States had seceded; six of them had joined, formed a Government and a nationality, and by no vote of his should there be any additions to the mil-side, who are waging war against it, are to have the itary force of the Government, which was to be used to coerce those States.

Fessenden's Defence.

He

Mr. Fessenden answered for the Committee. said it was time that Senators should understand precisely what the condition of the country was, and who was responsible for it. It was a singular address, coming from that quarter, to appeal to the Republican side to know what was the object of the proposition! Who had been in power for years? The proposition to build the steamers had come from a Democratic President, and a Democratic Committee of a Democratic Senate, year after year. Why did the gentleman question the Republicans about it? What change has transpired, Mr. Fessenden wished to know, that rendered the measure less requisite now than heretofore? The only reason offered by the Virginia Senator was, that six States had seceded, had seized property, had assailed the Government!

Mr. Fessenden continued:.

"It is almost impossible to refrain from asking, Who does the Senator represent here? Is he a Senator of the United States here on this floor, and does he stand up here and say, after all these things have taken place, that they render it unnecessary now to increase the naval force of the country? I recognize the fact, as was said by the Senator from Mississippi, (Mr. Davis,) that, so long as I am here, I am bound to perform my duty as a Senator of the United States, without any reference to what may be done outside of this Chamber. So long as I stay here, and receive the money of the Government, I will look out, to the best of my ability, for the in

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of this Chamber, and we are not bound to deal with them as negotiations. We are to look on them as against the interest, the welfare of the Government and the Constitution of the United States, under which we live. That is the point of view from which we must look at them. But men seem to say to themselves and the country, 'I, standing here as a member of this Government, must look out and keep my eyes open, not that this Government has the advantage of my counsels, but that those out

benefit of my counsels and my aid.' Why, sir, taken in consideration and in connection with this question, this bill of my friend from Vermont (Mr. Collamer) is simply a bill to provide that, if the revenue of the Government cannot be collected in a particular place, or a particular point, then these

places shall cease to be recognized as places where the revenue shall be legally collected. Yet this is commented on as a design of coercion. Do we not owe it to the foreign Governments themselves, that we should either enforce our own laws in these ports, or else declare them not to be legal ports of entry for the United States ?"

Mr. Mason replied, " Clearly so!" and added that, if the Committee could avow that reason in the bill-that the State of South Carolina is no longer a member of the Confederacy, and is beyond the jurisdiction of the Government-let them avow it!

Mr. Fessenden asked what difference there was, as a point of law, whether or not the motive was avowed. It was not necessary that the motive should stand declared. He resumed:

"We simply declare that there may be cases in which it may be difficult for the United States to collect revenue in particular places, by the ordinary course of proceedings, and we give the President the power to say that we shall no longer attempt to collect the revenue, for it shall cease to be a port where vessels may legally enter, under the authority of the United States; when we declare that it is no longer a port of the United States, a port of entry, and give notice of the fact, then comes a time when, if foreign vessels undertake to consider it a port of the United States, they will become amenable to the laws, and must take the consequences. It

MR. KING'S CALL FOR THE USE OF FORCE.

Fessenden's Defence.

397

Mason's Rejoinder.

will tell whom I represent. I
represent the sovereign State
of Virginia, to whom I alone am
amenable for what I may do, or what I may say. I
heard the Senator from Mississippi, to whom he re-
fers, with equal approbation to himself. I will do no-
thing that will stand in the way of the full and com-

was in reference to this fact that these people are now availing themselves of this being a port of the United States, and collect the revenue and put it into their own pockets, when in fact they are nobody in the eyes of the law, and in the eyes of the world, We are going on now, also, furnishing them postal facilities, we paying the expense and they re-plete administration of this Government as long as I ceiving the money. Now the Senator says this won't do. Either declare war, or else declare that they are no longer a part of the United States. I don't propose to do either. I propose to do simply that which is necessary for our own protection and advantage. I am acting yet as Senator of the United States, and I will legislate for the United States, and not for South Carolina, or any other Seceding State; and as long as I stay here, I take it that it is my duty. Nor am I going to be diverted from this by talk about force and coercion. The time may come when it will be necessary for us to speak plain. I am willing to speak plain now, and I say, speaking for myself, that if the time ever does come when it will be necessary to use force to execute the laws of the United States, under the Constitution, I am perfectly ready to do it. But I trust I shall have no such necessity. The measure of my friend from Vermont is a measure of peace, and the measure of constructing these additional vessels is a measure of peace. I do not suppose anybody ever dreamed of making this appropriation for the purpose of making war upon these States. It may be war will come. It may be these difficulties will grow vastly greater than they are now, and when that time comes I trust we shall be ready to meet our responsibilities like men. But the question is now, What is necessary for us to do for the interest of this country, in reference to its naval force? Although the Senator will not vote for it, because it may be that it will give additional force to the Government which he represents here, I say to him that is no objection to my mind. I am perfectly willing it should have that additional force, when I am so well defended by the recommendation of a Democratic President, year after year, and supported by a Democratic Senator."

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remain one of the participants in its administration;
but I have reason to believe that the Government is
initiating a policy that will lead to civil war, and
that will lead to unnecessary war, and will minister
to the passions of bad men. I will not vote to in-
crease the naval armament for that purpose; and
if I have reason to believe that the purpose is
to strengthen the arm of the Government with a
view to prospective war, I am doing my duty as a
Senator of the United States in doing what I can to
prevent it. The Hon. Senator has not favored us
with his view of the reasonable propriety of incur-
ring this expenditure in the present condition of the
Treasury, but has contented himself with the rec-
ommendation of a Democratic President. When
Senators, who are soon to become the dominant
powers will not say whether they are going to war
or not, but shadow it out darkly, I will not vote a
dollar until there is a settled policy, an established
and understood policy, for the new state of things.
I want to know what is to be the policy of this Gov-
ernment; whether they are going to make war on
the Seceding States, or whether they will let them
peacefully withdraw upon terms to be settled by
negotiation, or whether we are to remain here till
the 4th of March, with these purposes only darkly
shadowed forth, as was done by the Senator from
New York (Mr. Seward) the other day, and as has
been done by the Senator from Maine to-day, that
there may be a state of things when it is neces-
sary to coerce a State. We have that policy
shadowed out, but not avowed. It is time to estab-
lish a policy. Let us know what is to be done. I
desire as a Senator of the United States to know
how to shape my vote in relation to their measures
of public policy; and until we know whether civil
war is to be waged or not, because of Secession,
I will never vote a dollar to increase the navy.
King, (Rep.,) of New
York, followed. He said
he had, at former sessions,
voted against any increase of the navy, be-
cause he did not see the necessity for it. But
now that treason was abroad in the land, he
believed there was a necessity for the increase
of the armament and defensive power of the
country. He declared:

King's call for the
Use of Force.

"This Government and this country cannot be

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