I have now the honor to inform you that Mr. Johnson has performed the
duty confided to him, and has submitted his report thereupon. I think it
proper to furnish you with so much of Mr. Johnson’s general report as
relates to that transaction, and I have further to state that it has
been approved by the President. In accordance with the conclusion of the
report, I have the honor to advise you that instructions will at once be
given to Major General Butler, the acting military authority at New
Orleans, to relinquish all claim on behalf of the United States upon the
funds in question, so that Count Mejan will be at liberty to pay it to
whomsoever may be entitled to receive the same.
I avail myself of this opportunity to renew to you, sir, the assurance of
my high consideration.
The Viscount Treilhard, &c, &c., &c.
[Extract.]
Mr. Johnson to Mr. Seward.
Washington,
August 19, 1862.
Sir: * * * * * * * *
The item of seven hundred and sixteen thousand one hundred and
ninety-six dollars retained by the request or order of Major General
Butler in the hands of Count Mejan, the French consul.
This item was not in terms embraced by either of the commissions in
my possession whilst I was in New Orleans; but considering it as in
the spirit of the first, that of the 10th June, I investigated it,
and I am glad to understand that it was the subject of a special
authority to me after I left Washington.
1. The general considerations which belong, as I have supposed, to
the first item, apply with equal force to this. It is unnecessary to
repeat them. The transaction, as will appear by the depositions of
Mr. Denegre, the president of the Citizens’ Bank, of Mr. E.
Dupasseur, and of Mr. Antoine Bidault, the bookkeeper of the house
of E. Dupasseur & Co., the claimants, hereto annexed, marked
Nos. 1, 2, and 3, was this:
The bank, in addition to the deposit of $800,000 with the agent of
Messrs. Hope & Co., needed other credits in Europe. Their
principal business was the dealing in foreign exchange, and, to
enable them to do this, it was necessary to have a large credit
abroad. To effect this object they made this negotiation with
Messrs. Dupasseur & Co., known to be perfectly responsible
merchants of New Orleans, to wit: to purchase from them bills at
certain rates on Paris for the amount of $716,196, and to pay for
the same in coin. The bills were not to be accepted until the
drawees were advised of the shipment of the coin by Dupasseur &
Co. The bills were drawn, delivered to the bank, and the coin handed
over to Count Mejan, the French consul, to be retained until
shipped. They were remitted by the bank to their correspondents
abroad for acceptance, but have not been accepted because the coin
has not been sent on.
Things remained in this condition when Major General Butler requested
the consul to retain the coin, which he has ever since done.
On these facts the only question is, have the United States a right
to the fund? That the transaction was one of perfect good faith is
evident from the depositions referred to. It was a mere business
matter, in which the parties had a clear right to engage. That the
bank at the time owned the coin was not denied. Nor was it
questioned that the agreement was entered into and
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was being carried out when the major
general intervened. The United States can have no interest in the
coin, except upon the ground of forfeiture, and for that there was
not at the time, nor is there now, the slightest pretence. If it be
alleged, as matter of suspicion, (the proof is all the other way,)
that the purpose of the bank was to place so much of its funds
beyond the control of the United States, that, if true, would be no
cause of forfeiture, there being no law, State or congressional, to
prohibit it. If it be alleged that the purpose was to place the fund
in Europe for the advantage of the rebels, the answer is, there is
not only no proof of the fact, but the proof actually before me
wholly conflicts with it.
The detention of the fund has already caused serious loss to the
claimants, Messrs. Dupasseur & Co., (for they are both
sufferers,) and I am clear, therefore, in the opinion that it should
be restored at the earliest moment. Whether the restoration should
be made to the bank or to Dupasseur & Co., is a matter between
themselves, with which the United States have no concern; and, as
will be seen by the deposition of the president of the bank, the
bank desires the return to be made to Messrs. Dupasseur &
Co.
* * * * * * * * * *
I have the honor to be, with high regard, your obedient servant,
Hon. William H. Seward, Secretary of State, Washington, D.
C.
