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Show THI3tvTKUST, FUXI) PBBI?IIY, . TVfitxiAir ti. nussjtu'a CErtSsK. MR.,.RcssKt of-trust; fund memory,: lias published.a defense of his conduct and'iu.rcply to tlje report Wtli'o spcclnl committee, of tbe House of Kepreserita. lives,, which he averts to -be full of misv statcnicnts and false dcductfon,.and oIt0, golherunfalr and partial, " " P -HB;cIaim4".to.'hnvo issued -acceptances; in good faith; which were fargeiy;jego-tinted;, fargeiy;jego-tinted;, but- the, -firm' were heavy losers upon; their Jrnriiporta'tlou contrucis, rind were .uhablerjEo meet their' engagements, Of tho,;ubscqaen "transactions be gives the following account! r .When J 'was' thiis-siirnSiinded' by-cm-IwrrassmcnW, and .whilst I was'at Washington Wash-ington using' every exertion in rtiy power' to get Iheclaiiiisor 6ur firm against the government nlloiW njidJp"ald, I Wait-Introduced to- Godnhl, JJalley, who, as I have since- Iearncdr was a, disbursing offi.' ccr in the service of thc'govcrmifcht lie. forp meeting-with hiri! and forming Ids acquaintance; I had 'JcnVncd that be was. an able and.lnllueiitial lawyer, -who would bo ablo to assist mc in my business with tlie War depurtmttit,.. All the circum stonXsr,. attcudiriff the fdrmatiou or his ncqimlnariJ:e-Vhut Bfiqufrlcs .respecting1 tho acceptances ot the War department, and the probatifc effect upon, the Scerc tary or W'rir oT'-llicir heiug dislioiioriHl--,' nrffisct; forth at length itr my 'puClished Stati-mcnt.'insdo to'the select rniniMtW ;of the House of Representatives; and I need, not now'rc)cat them.. It Is sufficient to say that he informed thnt be had some.stttto stocks at his com-mdndj com-mdndj which I- might nso lor purposes of hypothecation, if 1 could return them in tnlucty days, I told htm- that I had no doubt at my ability to return them In (that time. Tim loan was accordingly , effected, and' I proceedttl mi tho evening Lflf tho. Saina day to iiew York, with the state stocks, and used them in the manner ,ond for purposcsalrcady indicated. When I ohtnmed them, nnd pledged them for money, with which to project the inntur-I inntur-I ing, acceptance of the War dvpartmcut, '1 was whplly ignorant of their true'clmr-nctcr. true'clmr-nctcr. This- htatemeiit I wnilo to the. t4,nWltco..umtert.thc. solemfilticji or tj JtiiirpiirtwtbJi-a w,ff nqt'iwinv ni' tlm -time,! nor .for two or thtee "months, tbefe-i!?t,vr..it' tbefe-i!?t,vr..it' there wus anjmlian Irust bond .inxisteticc, rlt was "only when: stocks deelinwl, nnd the parlies wilh whoul J had niiiaeibo.Jiypothecijtiou notified mcUhat they mustiell them orhnve an additional deposit -to make good the roatjtin, that I leanicl1fheir trno. character,, i returned to A ashuigton, jind sent' for Mr, liailer, with the tiewf of informing hint tbat'l would ,not be ,nbTe Jto return .the state stocks wji.ich I had borrowed from him, In the time stipulated in our agreement. In the interview hieK I then had with him, I told bun of the demand that had been made upon me by the parties who held them to increase the deposit, and or the uolice if their determination to sell them unless. such, additional deposit was made. He then told me, for tho, first time, that they belonged to the Indian Trust Fund. This disclosure completely ,overvheIi.ned mo. It added eutanglc- meut to-eiubarrawment., i saw instantly and with intense reality bpw difficult it would be to extricate myself from my nu-fortunate nu-fortunate dilemma, I had no means ati jury comionna with winch to redeem the Jhypothecaled bonds, and as they were ikely ip be sold, I feared that I might not be able, over to recover them. The government owed onr firm, as will be jseen from this paper, for looses aud (freights in 1857, exclusive of Interest, $055,5i0. From motives of policy, only ,a portion of ibis claim has been presented for. tidjustment to the Department and Congress. I kuew tho great difficulty f ieeuriuff payment for sci.large an amount, (and so presented as to procure uniudorse-jmcntpf uniudorse-jmcntpf the principle. involved, and in tho hope, afterwards, or obtaining' the'' entire oupt, . The department was in possession posses-sion of all the facts, and, as far as I was .able, to judge, had taken, no exception lo the claim itself -without pretending to understand un-derstand fully the jastieo of each particular particu-lar itpm .thereof. Tho late Secretary of War says,ut his published .statement, tbut wo were entitled lo "moro than half a million of dollars." When I discovered tut) the bonds 1 had borrowed end hypothecated belonged to the Jndlan Trust Fund, I would have freely given the whole of this largu.claim, and syerytbing I was- worth besides, to have been able at that moment to restore them. Other acceptances of the War Department were then maturing and likely like-ly to go to protct-t. This 1 knew would so impair the credit of onr firm as to render tbe safe ol tho bond certain, and their recovery Impossible. I had no time to. demote to calm reflection, A week or try, days might have enabled me lo mature ma-ture some plan by whieh to recover aud restore them, bt in the meantime they wcro. likely to be sold. Tlieu, aud in that cvmt( I knew that the government ac-wptunceu ac-wptunceu which md been issued to our ffirm, under circumstances that placed me undrrtbo blghes.1 possible obligation, tu protect them, must iucrilably go to protest. pro-test. In the sires vf my rtjffieultie, I wai in Uo condition, aud. a i havo said before, 1 hail no time to, weigh thi. responsibility, on tttu ouu humL of wrecking our firm, discrediting the,war depujtnuiut, aud per-, nuttiiii; ilw hyiKjtbwaltd tiuds to. bo sold i bcjoml niy jtucb, o.uiibt that u tho' Other hand of accepting mora bonds with which to. protect those that I had alrcfidy nscdf.Hiita Congress .should authorize tfw dcpartment.to.pay .ns.onr'ducs. J deter allied upon tho.Iacraitcrnat(fOv This Hroisfo.it. halved the-nccessitv of uslng'q sufficient' empubt of bands to protect from protest the other maturing acceptances of: Uie War department; for it was'pcrfecllyi obvious that aprotist wonld put it wholly' i anil permanently qut or my power to re turn cither ho firstpriiecotid lot of bonds. Accordingly, 1 accepted an additional lot, and used them,, parlfy , to. protect those f'Jf motbtttcd, but cblc'lly to raise money upon- which to pay off the ither acceptances then inttturing; ' . l J? I,roJ,?r to rcn,ark Mills councc-: tion, that lit recelrlng the: ecconil.lbtof bonds, I, gave in "exchange therefor the receipts .or . wir firm, in jny own hand-vrrltlnjsrto- be deposited in "the Interior dcpartment(as the evidence thai 1 had re etived them The money due dor firm was verVlargrty i,, cxeessof. the bonds, and fts,IJeft, in the depar'tnicbt the' cvi. dctiee that J' had received theni, "tlicre .vould.ha.rf !cri no. Imcutmn on. my part to dcfraiid the government, nor kit pos-H'ft pos-H'ft the government can lose one dollar oi accouni, of this traiisattrou. bhorjly after I obtained the second lot of bond, the monetary crisis, occasioned bv the agitation of the country,. cume.om Jiuanc!nl,einbarr4ssmentS began' io be felt all over the conntry. fOcks of all kiiids commcncedsrunnliig down with n rapidity that filled.me with the greatest iwsiblc ulariu. ?Jy fear was that the bonds I' had hypothecated would gadow n ton very IbW Dgiiref nml ,lm sold" at sneh a saeribi'e as would still furiher embarrass me'. ' 1 sav. in a woruy that I wiis.iu linniuteilt pef ij. 1 had rceoiveil the secp'ml lotor boiid the better to enable me to ri'co'Vr the lirstniid witi a btoirfdge f Utir true duiracltr, I did, this iiiiiter tlio force of circumstances which 1 was utterly unable locoiitrol. I did U, nsr I-iiow most solemnly sol-emnly nver, with as pure ft tndlivc as ever moved an honorable man. Hut ww, j saw that I wns In danger oflosing- thesebonds and those also that 1 bad prevlmrtiy pledged. The thought shot throijgh me like llame. My misfortune nssumwl mi ultiludo and expanMon that shut ut all hope for the luturc. 1 would bnvo, given the world If I hail never KKXl engage,-,,, tjid service of the govtTiinetit, by whose direct ngency, in withluildiiig. our dues, my euibarrawuieqls were, iirst brought .I'l'OIJ-StW. . .... . x w .--,. . all tho bomJa ujKfu tlie'iuafkcr.abd' even to obtain mid sell others, with the view of pi-oyidifig the means whejrevrtil, In cdn-nectiou cdn-nectiou with other rewu'rce.s- to rcpor-Ichase rcpor-Ichase thcwhole, wcii they reched-tfie?r'i iqwes piarket price Hut m this attempt I was auddenty cut short-by tho public avmvnl of Oodurd Huiley. The Course pursued toward tup by the gbrcrmucut, when -the facts that l.havc now detailed became publicly known, is nlrcndy will understood. I ns- iiumcdt. ately orrestql nnd held to ball iu a sum exceeding anything ever before known iu the nnnafs ot judicnil iiroueeiling in any country iu the world, My friends in tbu est came promptly Toward and proffered prof-fered security to the muouiit of millions; and, although 1 was in the midst of btran, gers, nearly tun thousand mile from hojue, this proffered assistance was rejected, reject-ed, and resident security was demanded to three-fifths of tho iiholo amount. This, Of course,.! was unubte to give, in default of whieh I was remanded to prison, where 1 remained until public sentiment forced tbe Administration to rcduee my bond to a more reasonable limit. I Thr Account of fi,m wllli the gomn-meat gomn-meat lmii. in tact ll.m: ! Kor frclfililg ttltlibclil in 1857 SfJXS.S.'O pVr liilaieat tbtcc ear, ot Ji w ' Celil . atlunllr falil t.y n , 233 j Kor-lo-s,f fnl$7, uf trwn BOO.OOOi I Kr Intrtrtt on ama thii-v yfflrn. . , . l.H,O0Oi ' Yt IrclRliU wlibhctd bv Koveriue(,t fprlbCOiiudftkil. , 60,090! i"' v. UJ?3t8 Aeir erk World, March 3(. |