War of the Rebellion: Serial 122 Page 0594 CORRESPONDENCE, ETC.

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2. The Secretary of the Treasury notified the Department on the 5th of August that "Mr. Schuyler's several drafts upon the Secretary of War, not exceeding $500,000 in any one draft or payable at less intervals than five days, will, if accepted by the Secretary of War, be paid at the Treasury Department to the extent of $2,000,000."

3. In consequence of the drafts requiring the "acceptance of the Secretary of War" (which would require time), Mr. Schuyler applied to Messrs. Baring Brothers to advance upon his credit, and accordingly they cashed two drafts of Mr. Schuyler, one of $500,000 and one of $134,000.

4. These two drafts were presented through Samuel J. Ward, of Boston (agent of Messrs. Baring Brothers & Co.), and paid at the Treasury upon proper requisition from the War Department, making first payment $634,000.

5. The Secretary of the Treasury was informed that a saving in exchange was to be effected by the transmission of bills to London rather than by the acceptance and payment of drafts here; accordingly a requisition was made on the Treasury for $600,000 in favor of the Bank of Commerce for purchase of bills of exchange, to be remitted to Baring Brothers, making the second payment on account of Schuyler's two millions $600,000.

6. The Secretary of the Treasury was advised to remit the balance of the two millions, but as yet no such further remittance has been made. The total amount actually paid from the Treasury on requisition from War Department is, therefore, $1,234,000, thus leaving $766,000 to be made up of the original two millions.

Until the present time Mr. Schuyler has advised the Department of purchases and contracts as follows:

Letter of George L. Schuyler of September 5: 10,000 Lefaucheux patent revolvers, at $12.50 each, $125,000; 200,000 cartridges for same, total cost, $3,490; 20,000 swords, at $3.45 each, $69,000.

Also letter of September 27: 10,000 cavalry carbines, at $6 each, $60,000.

Also le4: 27,000 Enfield rifles from Dresden, at $14 each, $378,000; also 10,000 Enfield rifles (where from not stated), 88 francs, of $17 each, $170,000=$805,490.

In his letter of 5th of September Mr. Schuyler states that Mr. Dayton had closed contract on advice from Quartermaster-General for 10,000 complete sets of clothing and equipments of Chasseur pattern, amounting to $500,000. This, it is believed, has been transferred by Mr. Dayton against Mr. Schuyler's credit, and if so would make his total disbursements as follows, so far as this Department is advised:

On account of arms and ordnance, say................... $805,000

On account of sets of clothing and equipment of

soldiers.............................................. 500,000

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1,305,000

From the correspondence submitted to the Department from George L. Schuyler it is distinctly understood by the Department that no moneys have been paid for any goods until after actual delivery.

There have been actually received by the Department as follows:

Per steamer Fulton:

1,700 revolvers....................................... $21,250

200,000 cartridges.................................... 3,490

Actually arrived, 2,000 swords, $3.45.................. 6,900

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31,640