sonnel of his
department would be followed by inquiries from one party or the other,
coupled oftentimes with complaints and criticisms.
Great evils existed in the revenue system. The controversy between
Congress and the President led to many removals of collectors of
customs and of internal revenue. Their places were supplied by persons
who could accommodate themselves to both parties. The President was
made to believe that the applicants were his friends, but that their
relations with Republican Senators were such that they could secure
confirmation. When nominated these men represented themselves as good
Republicans and friendly to the Congressional policy. From such
persons an honest performance of duty could not have been expected.
Hence gross frauds upon the revenue were perpetrated and in most
instances by the connivance of those in office.
The returns for the last year of Johnson's administration, and the
first years of Grant's administration, showed that the loss on whisky
in the first named period was not less than thirty million dollars.
That there were other great losses was proved by the facts that the
payments on the public debt were less than thirty million dollars
during the last year of Johnson's administration and that the payments
were one hundred million dollars during the first year of Grant's
administration, and that without any additional sources of revenue.
If Mr. McCulloch's first statement had been true in the most important
particulars, his second claim would not have been open to debate. It
was true that the department had passed the point where there was any
exigency for money. The Government was no longer a borrower. Payments
on the public debt had been made, but otherwise nothing had been done
to relieve the country of the interest account, nor was the credit of
the Government such that any practicable movement in that direction
could have been made.
The six per cent bonds were worth only 83 or 84, and no step had been
taken to redeem the pledge of the Government in regard to the Sinking
Fund made in the act of February 25, 1862. The interest account
exceeded two hundred and thirty-three million dollars.
Mr. S. M. Clark was the chief of the Bureau of Printing and Engraving
and everything was confided to him. It is to be said after the lapse
of thirty years for examination, that not a tittle of evidence has
been found warranting any imputation upon his integrity. It is
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