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Writing on his Birthday, While Embroiled in a Struggle Over Control of the Republican Party, Abraham Lincoln Forcefully Defends his Integrity by Writing to Secretary of the Treasury Salmon Chase, Criticizing the Performance of Chase's Operatives at the New York Customs House, which was Under Investigation for Corruption

Abraham Lincoln Autograph Letter Signed as President. Two pages on a bifolium, 8 x 10 inches, on Executive Mansion stationery. Washington, [D.C.], February 12, 1864. Written to "Hon. Secretary of the Treasury," Salmon P. Chase. Housed in a custom quarter morocco clamshell.

Lincoln writes, in full:

My Dear Sir:
I have felt considerable anxiety concerning the Custom House at New-York. Mr. Barney has suffered no abatement of my confidence in his honor and integrity; and yet I am convinced that he has ceased to be master of his position. A man by the name of Bailey, whom I am unconscious of ever having seen, or even heard of, except in this connection, expects to be, and even now assumes to be, Collector de facto, while Mr. Barney remains nominally so. This Mr. Bailey as I understand having been summoned as a witness to testify before a committee of the House of Representatives which purposed investigating the affairs of the New-York Custom-House, took occasion to call on the Chairman in advance, and to endeavor to smother the investigation, saying among other things, that whatever might be developed, the President would take no action, and the committee would thereby be placed unpleasantly. The public interest can not fail to suffer in the hands of this irresponsible and unscrupulous man. I propose sending Mr. Barney Minister to Portugal, as evidence of my continued confidence in him; and I further propose appointing ______ [intentionally left blank] Collector of the Customs at New-York. I wrote the draft of this letter two weeks ago, but delayed sending it for a reason which I will state when I see you. Yours truly A. Lincoln."

When elected in 1860, Lincoln appointed political rival, former Ohio governor and U.S. Senator Salmon P. Chase, Secretary of the Treasury. The ever-ambitious Chase immediately began jockeying to reach the Oval Office in the next election, and, in 1864, he was the man to which many radical Republicans were looking to replace Lincoln for the party's ticket. Lincoln, fully aware of this, professed not to care as long as Chase continued doing his job at the Treasury.

Hiram Barney was Salmon Chase's political ally and chief New York sponsor, yet, when Chase was out of the running for the presidential nomination in 1860, Barney supported Lincoln by raising $35,000 in New York for the national ticket. Once elected, Lincoln appointed Barney Collector of the Port of New York, regarded as the greatest prize within the Treasury Department through its large number of employees and its means of affecting the New York political machine. Once in office, however, Barney was surrounded by criticism and controversy by appointing Democrats to posts within his department and was widely - and credibly - accused of corruption. In early 1864, Barney's adversaries spread stories that he was supporting Chase for President and opposed Lincoln's reelection. Meanwhile, Lincoln had been keeping a watchful eye on the N.Y. customs house fearing that the embarrassing corruption scandals might damage his chances in New York for the upcoming November election.

Facing growing pressure to remove Barney, Lincoln wrote a letter to Chase on January 11, 1864: "I am receiving letters and dispatches indicating an expectation that Mr. Barney is to leave the Custom House, at New York. Have you anything on the subject." Chase came to his rescue for both political and personal reasons. Unbeknownst to Lincoln, Barney had lent a substantial sum of money to Chase in addition to managing the Treasury Secretary's New York real estate holdings. Chase replied in defense of Barney as a matter of personal honor, writing, "Nothing at all, except urgent representatives of the necessity of reform, which do not, at all impeach Mr. Barney, in whose integrity I have undiminished confidence... I shall not recommend the removal of Mr. Barney, except upon such show of misconduct, or incapacity, as makes it my duty to do so. In such a case I shall not shrink from my duty."

Hiram Barney's position was additionally undermined by the actions of another Chase ally, Joshua S. Bailey, special agent of the Treasury at New York, who was tasked with investigating corruption in Barney's customs operations. Bailey told the Congressional committee investigating him that "whatever might be developed the President would take no action." Incensed at the false and slanderous allegation of tolerating corruption, on his birthday, Lincoln wrote the present letter to Chase. In his original draft, Lincoln indicated that he would appoint Preston King, a former Republican U.S. Senator from New York. Apparently, Lincoln reconsidered specifically naming King, or anyone else, under the circumstances and intentionally left the name blank. The President told Attorney General Edward Bates that he had decided Barney must be relieved of his duties. Lincoln then asked Secretary of State William Seward to find a diplomatic post for Barney, which he did, in the ambassadorship to Portugal.

Chase replied to this letter the next day and sought to keep Lincoln from replacing Barney from his post without his consent. Lincoln later said that Chase had threatened to resign as Secretary of the Treasury if Barney was removed and that he [Lincoln] backed down. On June 6, 1864, Lincoln again pushed Chase to dismiss Barney unsuccessfully. Later that month, Chase sought to replace the well-respected John Cisco as Assistant Treasury Secretary for New York with a clearly unqualified candidate of suspect political loyalty. Fearing a revolt within his own party, Lincoln urged Chase to select from among three alternative candidates. Chase rejected them and persuaded the incumbent to withdraw his resignation, forcing Lincoln's hand. When Chase sought a meeting with the President, he was refused. On June 29, Chase once again resigned, and Lincoln accepted.

Realizing Chase had a constituency within his own party, Lincoln named Chase the 6th Chief Justice of the U.S. Supreme Court, removing him from politics, thereby avoiding a competent enemy battle him for years going forward. With Chase gone from the cabinet and the new Treasury Secretary William P. Fessenden not committed to Barney's retention, Lincoln dispatched his secretary, John G. Nicolay, to New York, and Barney submitted his resignation. Simeon Draper replaced Barney and remained in office until August 1865. Barney remained loyal to Chase, serving on his presidential organizing committee in 1868. He was at Chase's side when he died in 1873. Incidentally, Joshua Bailey was more corrupt than the people he was investigating. He eventually fled to avoid prosecution for embezzlement.

Condition: Creased along folds and lightly toned. Partial separations along the horizontal creases at the margins of each page and the central vertical fold.


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