Diary of Gideon Welles: Saturday, April 29, 1865

Mellen, the Treasury agent, called on me to-day with a crude mess in relation to Treasury agents and trade regulations. I told him they were not what we wanted and I did not like them, that I thought the whole fabric which had been constructed at the Treasury should be swept away. He claims it cannot be done by the Executive under the law, and it is true Chase and his men have tied up matters by legislation, literally placing the government in the hands of the Treasury.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 298

Diary of Gideon Welles: Thursday, July 7, 1864

I am apprehensive of trouble in making future contracts. Old contractors have been attacked and called to account, and will be shy. But the great damage is from the neglect or delay of the Treasury, which does not pay. Honest contracts are not fairly treated by the Treasury. Men are kept out of their money after due, wrongfully. I had the material, and began the preparation, for a pretty strong statement to Mr. Chase at the time he resigned.

Very mischievous efforts are being made in some quarters to injure the President and assist Chase by reason of his going out. I know nothing of the particulars from either of them, but I feel a conviction that the country is benefited by Mr. Chase’s retirement. His longer continuance in the Treasury would have been a calamity. It would have been better could he have left earlier.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 68-9

Salmon P. Chase to Abraham Lincoln, February 22, 1864

Washington Feb 22, 1864

My dear Sir

It is probable that you have already seen a letter printed in the Constitutional Union, Saturday afternoon, & reprinted in the Intelligencer this morning, written by Senator Pomeroy, as Chairman of a Committee of my political friends.

I had no knowledge of the existence of this letter before I saw it in the Union.

A few weeks ago several gentlemen called on me & expressed their desire, which, they said, was shared by many earnest friends of our common cause, that I would allow my name to be submitted to the consideration of the people in connexion with the approaching election of Chief Magistrate. I replied that I feared that any such use of my name might impair my usefulness as Head of the Treasury Department & that I much preferred to continue my labors where I am & free from distracting influences, until I could honorably retire from them. We had several interviews. After consultation, and conference with others, they expressed their united judgment that the use of my name as proposed would not affect my usefulness in my present position; and that I ought to consent to it. I accepted their judgment as decisive; but at the same time told them distinctly that I could render them no help, except what might come incidentally from the faithful discharge of public duties; — for these must have my whole time. I said also that I desired them to regard themselves as not only entirely at liberty, but as requested, to withdraw my name from consideration whenever, in their judgment the public interest would be promoted by so doing.

The organization of the Committee, I presume, followed these conversations; but I was not consulted about it; nor have I been consulted as to its action; nor do I even know who compose it. I have never wished that my name should have a moment's thought in comparison with the common cause of enfranchisement & restoration or be continued before public a moment after the indication of a preference by the friends of that cause for another.

I have thought this explanation due to you as well as to myself. If in your judgment there is anything in my action or position which, in your judgment, will prejudice the public interest under my charge I beg you to say so. I do not wish to administer the Treasury Department one day without your entire confidence.

For yourself I cherish sincere respect and esteem, and, permit me to add, affection. Differences of opinion as to administrative action have not changed these sentiments; nor have they been changed by assaults upon me by persons who profess themselves the special representatives of your views and policy. You are not responsible for acts not your own; nor will you hold me responsible except for what I do or say myself.

Great numbers now desire your reelection. Should their wishes be fulfilled by the suffrages of the people I hope to carry with me into private life the sentiments I now cherish, whole and unimpaired.

With great respect,

Yours truly

S P Chase

[Endorsed on Envelope by Lincoln:]

Secretary Chase on Occasion of Secret Circular

SOURCE: Lincoln, Abraham. Abraham Lincoln papers: Series 1. General Correspondence. 1833 to 1916: Salmon P. Chase to Abraham Lincoln, Monday,Pomeroy Circular; endorsed by Lincoln. 1864. Manuscript/Mixed Material. https://www.loc.gov/item/mal3073400/.

Diary of Gideon Welles: Friday, June 3, 1864

For several days the delegates to the National Convention have been coming in. Had a call from several. Met a number at the President's. All favor the President. There is a spirit of discontent among the Members of Congress, stirred up, I think, by the Treasury Department. Chase has his flings and insinuations against the President's policy, or want of policy. Nothing suits him. There seems some difference among the delegates about the Vice-Presidency, but they will be likely to renominate Hamlin, though he has not much personal strength and has not the mind and temperament to build up a party for the country. There is an impression here that he has great strength in New England, but that is not my opinion. He has party cunning and management but not breadth and strength and is but little cared for there; is not offensive or obnoxious, but there is no zeal for him. As the President is a Western man and will be renominated, the Convention will very likely feel inclined to go East and to renominate the Vice-President also. Should New York be united on Dix or Dickinson, the nomination would be conceded to the Empire State, but there can be no union in that State upon either of those men or any other.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 44-5

Diary of Gideon Welles: Tuesday, May 31, 1864

No special matters in Cabinet. Mr. Seward sent me on Saturday a correspondence between himself and Lord Lyons and the Treasury Department relative to a large amount of cotton which was purchased a few months since in Georgia by one John Mulholland, an Englishman, who desires to bring it out, or, if he could not do that, to have it protected. The Secretary of State wrote the Secretary of the Treasury for views. The Treasury thought the proposition to bring it out inadmissible, but when our military lines were so extended as to include this cotton the agents of the Treasury would give it the same care as the property of loyal citizens; thinks it would be well to advise the Navy and War Departments to instruct their officers. Hence the communication to me.

I decline giving any such instructions, and so have written Mr. Seward, considering it illegal as well as inexpedient, telling him it would be a precedent for transferring all the products of the South into foreign hands to pay for munitions of war which we should be bound to protect. None but Englishmen would have the presumption to make such a request. It is entitled to no respect or consideration. Not unlikely it is cotton of the Rebel government covered

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 40

Diary of Gideon Welles: Thursday, May 12, 1864

Late last night, Mr. Byington, a newspaper correspondent, called at my house. He left General Grant's headquarters at 8 A.M. yesterday. Reports hard fighting on Tuesday, but represents our troops to have had the best of it. General Robinson, severely wounded, arrived in Washington.

Secretary Chase sends me a letter that the Treasury is unwilling to pay bills drawn abroad in coin, and wishes the Department to buy coin and pay the bills independent of the Treasury. In other words, the Treasury Department declines to meet government obligations as heretofore. It is incapable of discharging its fiscal duties, is no longer to be a fiscal but a brokerage establishment for borrowing money and issuing a baseless, fictitious paper currency. These are the inglorious results of the schemes and speculations of our financier, and the end is not yet. There will be a general breakdown under this management.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 29

Diary of Gideon Welles: Monday, May 2, 1864

Rumors thick and unpleasant in regard to the clerks and women employed at the Treasury. Much is doubtless exaggeration, but there are some disagreeable truths.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 23

Diary of Gideon Welles: Friday, April 29, 1864

Usher relates to me to-day some damaging stories concerning the Treasury. I cannot but think them exaggerations. I know, from some reliable and unmistakable sources, that there have been improprieties among the subordinates of a licentious character, and that Chase is cognizant of the facts. It has surprised me that, knowing the facts, he should have permitted the person most implicated to retain a position of great trust. Only great weakness, or implication in error would give a solution. I do not for a moment entertain the latter, and the former is not a trait in his character.

These matters cannot be suppressed. Blair says Chase will not assent to a committee. He cannot avoid it, and since Frank Blair has left, I think he will not attempt it. Colfax, the Speaker, will give him pretty much such a committee as he wishes. The majority will be friends of Chase, as they should be, and none probably will be unfair opponents.

The President to-day related to two or three of us the circumstances connected with his giving a pass to the half-sister of his wife, Mrs. White. He gave the details with frankness, and without disguise. I will not go into them all, though they do him credit on a subject of scandal and abuse. The papers have assailed him for giving a pass to Mrs. White to carry merchandise. Briefly, Mrs. W. called at the White House and sent in her card to Mrs. Lincoln, her sister, who declined to receive or see her. Mrs. W. two or three times repeated these applications to Mrs. L. and the President, with the same result. The President sent a pass, such as in some cases he has given, for her to proceed South. She sent it back with a request that she might take trunks without being examined. The President refused. She then showed her pass and talked “secesh” at the hotel, and made application through Mallory first and then Brutus Clay. The President refused the former and told Brutus that if Mrs. W. did not leave forthwith she might expect to find herself within twenty-four hours in the Old Capitol Prison.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 20-1

Diary of Gideon Welles: Saturday, April 30, 1864

The Wilkes court martial found him guilty on all charges and sentenced him to three years’ suspension and a reprimand. It is a light punishment for the conviction.

Army movements indicate an early and great battle, but when and where to be fought is unknown in Washington.

Congress to-day has ordered a committee on the Treasury. It is made up as only Colfax could do it. Some able friends of Chase are on it, and Brooks who is a superficial demagogue is associated with them.

Thirty years ago I was accustomed to meet Brooks, then a resident of Portland, Maine. He was at that time a zealous Whig partisan, with no settled principles. Judging from the New York Express, his paper, I think he has changed very little, though now elected by, and acting with, those who call themselves Democrats and have a Democratic organization.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 21-2; William E. Gienapp & Erica L. Gienapp, Editors, The Civil War Diary of Gideon Wells, p. 399-400.

Salmon P. Chase to John M. Forbes & William H. Aspinwall, March 30, 1863

Treasury Department,         

Washington, D. C., March 30, 1863.

. . . This letter will be delivered to you by Mr. Walker, who will also submit to your perusal the letter of instructions under which he will himself act.

He is not informed as to the particulars of any commission with which you are charged, other than that of negotiating a loan of five millions, but you will doubtless find it convenient and useful to confer with him freely as to all the objects you have in view. . . .

I trust your well-known sagacity and practical experience will contribute much to the success of the efforts of our diplomatic and consular functionaries to arrest these practices so dangerous to peace between the two nations. . . .

SOURCE: Sarah Forbes Hughes, Letters and Recollections of John Murray Forbes, Volume 2, p. 42

Diary of Gideon Welles: Saturday, April 16, 1864

Had a long telegram at midnight from Cairo, respecting Rebel movements in western Kentucky, — at Paducah, Columbus, Fort Pillow, etc. Strange that an army of 6000 Rebels should be moving unmolested within our lines. But for the gunboats, they would repossess themselves of the defenses, yet General Halleck wants the magnanimity and justice to acknowledge or even mention the service.

There is still much excitement and uneasy feeling on the gold and currency question. Not a day but that I am spoken to on the subject. It is unpleasant, because my views are wholly dissimilar from the policy of the Treasury Department, and Chase is sensitive and tender — touchy, I may say — if others do not agree with him and adopt his expedients. Mr. Chase is now in New York. He has directed the payment of the May interest, anticipating that throwing out so much gold will affect the market favorably. It will be likely to have that effect for a few days but is no cure for the evil. The volume of irredeemable paper must be reduced before there can be permanent relief. He attributes to speculators the rise in gold! As well charge the manufacturers with affecting the depth of water in the rivers, because they erect dams across the tributaries! Yet one cannot reason with our great financier on the subject. He will consider it a reflection on himself personally and claims he cannot get along successfully if opposed.

I remarked to Senator Trumbull, whom I met when taking my evening walk last Thursday, and was inquired of, that I could hardly answer or discuss his inquiry in regard to the gold excitement, because in a conversation which we had a year or two since, when one of the bills was pending, —  the first, I believe, — I had said to him I was a hard-money man and could indorse no standards but gold and silver as the measure of value and regretted and distrusted the scheme of legal paper tenders. Chase heard of that conversation and claims I was embarrassing the Treasury.

This sensitiveness indicates what I fear and have said, viz. Chase has no system on which he relies, but is seeking expedients which tumble down more rapidly than he can construct them. He cannot stop what he and others call “the rise of gold,” but which is really the depreciation of paper, by the contrivances he is throwing out. The gold dollar, the customs certificates, the interest-bearing Treasury notes, etc., etc., are all failures and harmful and will prove so. The Secretary of the Treasury found a great and rich country filled with enthusiasm in a noble cause and full of wealth, with which they responded to his call, but their recourses and sacrifices were no evidence of financial talent on the part of the Secretary who used them. The Secretary is not always bold, and has not enforced taxation; he is not wise beyond others, and has not maintained the true measure of value; he resorts to expedients instead of abiding by fixed principles. By multiplying irredeemable paper and general inflation, his “ten forty” five-per-cents may be taken, but at what cost to the country! He is in New York and may negotiate a loan; but if he does, it will be with the banks and, I presume, at six per cent. If so, the banks will not be able to help the speculators, and they, being cramped, will suffer, and perhaps fail. The fancy stocks will be likely to fall under this operation, and the surplus money may seek government securities, but under the inflation how expensive to the country!

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 12-4

George S. Denison to Salmon P. Chase, October 10, 1862

New Orleans, Oct. 10th, 1862.

Dear Sir: I enclose in this private letter, my statement of private account with the Treasury Department, with vouchers showing the disposition of the $1,000, received from Mr. Barney, by your order, to pay traveling expenses of the Custom House officers from New York to this port. The account shows balance due me Sept. 30th, of $1,3352.24. My name has not been included in the pay roll of this office, in making estimate heretofore.

The duties of Collector of this port have never been so extensive as now — nor his labors so arduous — nor his responsibilities so great. If the account is incorrect, please inform me with your own hand.

This Custom House is thoroughly organized, and everything works smoothly and efficiently. We have not yet received any blank books and forms from New York, so that official returns cannot yet be made in proper form.

About 100 vessels are in port loading or unloading. Most of the business being coastwise, the receipts for duties are not large. To-night the am't. in my hands is about $180,000. I have not appointed, and shall not appoint, any officer, unless it is absolutely necessary.

Mr. Sarjeant, acting appraiser here, informs me by letter, that he has had an interview with you and has received from you authority to appoint in New York Assistants to the Appraiser's Department in this Custom House, who will return here with him. I regret that my opinion was not asked, for I regard the increase of officers in the Appraiser's Department, only as an unnecessary expense to the Government. Even in Mr. Sarjeant's absence, we have got along well enough with only Mr. Jackson, whose nomination as Asst. Appraiser you approved. To be sure, the increase of officers will give to all in the Appraiser's Department much leisure, but why should a Government officer be allowed any leisure at all?

SOURCE: Diary and correspondence of Salmon P. Chase, Annual Report of the American Historical Association for the Year 1902, Vol. 2, p. 320

Diary of Gideon Welles: Tuesday, March 29, 1864

Not long at Cabinet-meeting. Chase still feels that he did not make a good case in the matter of the Princeton. He inquired with assumed nonchalance how I got on with Lee and Butler in the matter of permits. I told him the whole subject of trade belonged to the Treasury, and I gave myself no further concern about it than to stop abuse through naval officers. He denied that he had anything to do with matters of trade within the Rebel lines. I replied that General Butler gave permits for trade and quoted the trade regulations for his authority, and when I referred the matter to him for explanation, he had taken no exception. Chase seemed stumped. Said the regulations had not been officially promulgated. I told him that I knew not whether they were or not, but if they had been I asked if they authorized the proposed trade. He said they did not.

Told Mr. Wilson he must look into Johnson's case, for I did not like it should be longer suspended.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 548

Diary of Gideon Welles: Friday, February 26, 1864

Only three of us were at the Cabinet council to-day. Some matters of interest were touched upon, but there was soon a discussion on recent political movements. The President has been advised of the steps taken to forward the Chase operations. Circulars were put in his hands before signed.

A spicy debate sprung up yesterday on the passage of the Navy Bill. Holman, a Copperhead partisan, made an attack on me, — sprawling, personally vituperative, and abusive. H. Winter Davis sustained him, but flung his vindictive spite more malignantly at Fox, whom he called a "cotton-spinner," than at me. He eulogized Du Pont, whom the Navy Department had withdrawn from the command of the South Atlantic Squadron, and denounced the Balaclavian order compelling him to attack Sumter, etc., etc. Kelly and Griswold defended the Department, but Frank Blair made the best points, and told Davis that, while he was active in getting up investigations against the Navy Department, he opposed all investigation of the Treasury. Things took such shape that I perceive the instructions to and correspondence with Du Pont will be called for.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 531

Diary of Gideon Welles: Thursday, February 25, 1864

I called at the Treasury Department this morning relative to funds to pay the hands in the Navy Yard at Broooklyn. Chase appeared very well and calm. We talked of many difficulties. He wants the bank circulation suppressed. I told him we could not have two currencies, for the baser would always expel the better. He said the banks and individuals were hoarding the government paper and there must be some legislation to prevent the banks from circulating their paper, and it was desirable there should be a public sentiment in that direction. I do not think he has any sound, well-matured, comprehensive plan of finance, or correct ideas of money and currency, but he is quick of apprehension and has mental resources, and is fertile in expedients not always sound but which have been thus far made available.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 530

Diary of Gideon Welles: Monday, February 15, 1864

Mr. Sedgwick on Friday wished a pass to visit Stover, the convict in Fort Lafayette, and would get from him statements that would open frauds and misdeeds upon the government. I disliked to give him such pass, and yet was not fully prepared to deny him, because he might be useful in aiding the Department to bring offenders to light. I therefore put him off with a suggestion that he might consult the marshal, and telegraph me if necessary. I gave a permit, however, to Colonel Olcott, and Baker, the detective. To-day Colonel Olcott telegraphs me that he visited Stover at Fort Lafayette, and found Sedgwick with him by permission of General Dix.

There is evidently a desire among the officials of the War Office to make difficulty, and no disposition to aid the Navy Department in ferreting out offenders. These committees in Congress are like them in many respects.

The movements of parties and partisans are becoming distinct. I think there are indications that Chase intends to press his pretensions as a candidate, and much of the Treasury machinery and the special agencies have that end in view. This is to be regretted. The whole effort is a forced one and can result in no good to himself, but may embarrass the Administration. The extreme radicals are turning their attention to him and also to Frémont. As between the two, Chase is incomparably the most capable and best, and yet I think less of his financial ability and the soundness of his political principles than I did. The President fears Chase, and he also respects him. He places a much higher estimate on the financial talents of Chase than I do, because, perhaps, we have been educated in different schools. The President, as a follower of Clay, and as a Whig, believes in expedients. I adhere to specie as the true standard of value. With the resources of the nation at his disposal, Chase has by his mental activity and schemes contrived to draw from the people their funds and credit in the prosecution of a war to which they willingly give their blood as well as their treasure.

Some late remarks in the Senate have a mischievous tendency, and there is no mistaking the fact that they have their origin in the Treasury Department. The Administration is arraigned as a departmental one in its management of affairs, and unfortunately the fact is so, owing chiefly to the influence of Seward. But Chase himself is not free from blame in this matter. He did not maintain, as he should have done, the importance of Cabinet consultations and decisions at the beginning, but cuddled first with Cameron, then with Stanton, but gained no strength. Latterly his indifference is more manifest than that of any other one, not excepting Stanton. This being the case, it does not become his special friends to assail the President on that score. Chase himself is in fault.

The President commenced his administration by yielding apparently almost everything to Seward, and Seward was opposed to Cabinet consultations. He made it a point to have daily or more frequent interviews with the President, and to ascertain from him everything that was being done in the several Departments. A different course was suggested and pressed by others, but Chase, who should, from his position and standing, have been foremost in the matter and who was most decidedly with us then, flinched and shirked the point. He was permitted to do with his own Department pretty much as he pleased, and this reconciled him to the Seward policy in a great degree, though he was sometimes restless and desired to be better informed, particularly in regard to what was doing in the War Department. Things, however, took such a course that the Administration became departmental, and the result was the President himself was less informed than he should have been and much less than he ardently craved to be, with either the War or the Treasury. The successive Generals-in-Chief he consulted constantly, as did Seward, and, the military measures being those of most absorbing interest, the President was constantly seeking and asking for information, not only at the Executive Mansion, but at their respective offices and headquarters. Scott, and McClellan, and Halleck, each influenced him more than they should have done, often in a wrong direction, for he better appreciated the public mind and more fully sympathized with it than any of his generals. Neither of the three military men named entered into the great political questions of the period with any cordiality, or in fact with any correct knowledge or right appreciation of them. Yet they controlled and directed military movements, and in some respects the policy of the government, far more than the Cabinet.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 524-7

Diary of Gideon Welles: Wednesday, February 3, 1864

Had a brief talk to-day with Chase on financial matters. He seems embarrassed how to proceed, but, being fertile in resources, listening to others still more fertile, and having resorted to expedients in one instance, he will probably experience little difficulty in finding another. There will, however, come a day of reckoning, and the nation will have to pay for all these expedients. In departing from the specie standard and making irredeemable paper its equivalent, I think a great error was committed. By inflating the currency, loans have been more easily taken, but the artificial prices are ruinous. I do not gather from Chase that he has any system or fixed principles to govern him in his management of the Treasury. He craves even beyond most others a victory, for the success of our arms inspires capitalists with confidence. He inquired about Charleston; regretted that Farragut had not been ordered there. I asked what F. could do beyond Dahlgren at that point. Well, he said, he knew not that he could do more, but he was brave and had a name which inspired confidence. I admitted he had a reputation which Dahlgren had not, but no one had questioned D.'s courage or capacity and the President favored him. The moral effect of taking Charleston was not to be questioned; beyond that I knew not anything could be gained. The port was closed.

The conversation turned upon army and naval operations. He lamented the President's want of energy and force, which he said paralyzed everything. His weakness was crushing us. I did not respond to this distinct feeler, and the conversation changed.

Almost daily we have some indications of Presidential aspirations and incipient operations for the campaign. The President does not conceal the interest he takes, and yet I perceive nothing unfair or intrusive. He is sometimes, but not often, deceived by heartless intriguers who impose upon him. Some appointments have been secured by mischievous men, which would never have been made had he known the facts. In some respects he is a singular man and not fully understood. He has great sagacity and shrewdness, but sometimes his assertion or management is astray. When he relies on his own right intentions and good common sense, he is strongest. So in regard to friends whom he distrusts, and mercenary opponents, in some of whom he confides. A great and almost inexcusable error for a man in his position.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 520-1

Diary of Gideon Welles: Saturday, January 16, 1864

Had a call from General Frank Blair. He is bitter against Chase and the management of the Treasury Department, — its favorites and permits. Not unlikely he exaggerates without intending it, but I apprehend there are reasons for some of his arraignments. We had some talk on the subject of opening the whole country west of the Mississippi to trade above New Orleans. He concurs with me.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 510-1

Diary of Gideon Welles: Monday, January 18, 1864

A batch of letters has been sent us from the provost marshal, disclosing a mass of fraud and intrigue on the part of a set of assuming men that is as amusing as reckless. General Haupt, Naval Constructor Griffiths, Gwyn[?] of the Treasury, Hamilton Norris, and others figure in the affair. About a year since General H. published a series of questions for the improvement and progress of the Navy Department, which he and his associates appeared inclined to take into their keeping. This correspondence brings to light the secret intrigues of these scoundrels.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 511

Diary of Gideon Welles: Monday, December 28, 1863

Senator Doolittle came and had an hour's conversation with me. Wanted, I soon saw, to ascertain my views without my being aware of his object; hence his first conversation related to permits for trade, getting out cotton, and other matters connected with the Treasury. I frankly gave him my opinion, stated my unequivocal opposition to the whole system of trade-permits — these schemes to fight and feed the enemy — and to all favoritism. If there is to be trade with the Rebels, let all participate. There were plans to make the Navy a convenience to certain parties, and subject to certain regulations of the Treasury Department, which I disapproved and resisted in all its stages.

On the subject of the Presidency, which he says is opening, the public mind seems settling on the President as the proper candidate. D. says, however, that there is an active, zealous, and somewhat formidable movement for Chase, and that Chase clubs are being organized in all the cities to control the nominating convention.

SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 1: 1861 – March 30, 1864, p. 497-8