[The following is largely in regards to John B. Floyd, a figure we’ve mentioned earlier in this post. This is almost a part 2, really.]
In 1858 Floyd had begun an arrangement with a businessman named William Russel, whose business included carrying supplies to the army’s western forts. Russell played the stock market – and overextended himself. In 1857 his bubble burst and he came to Floyd and asked for succor. The scatterbrained secretary, concerned that if Russell went under the army would have trouble supplying its isolated garrisons, agreed to a scheme to keep Russell afloat.
Floyd would sign drafts paying for Russell’s transport work in advance. Floyd’s drafts were backed by the credit of the United States, so were virtually equivalent to money. Russell could take them to a bank as collateral to borrow cash. With these loans, William Russell had enough money to pay off his most immediate debts. But the ease of all this induced him to recklessness. He spent the money quickly, then went to Floyd for more. The process continued. Floyd was such a poor administrator that he kept no accurate and systemic records of these transactions.
Senator Judah P. Benjamin of Louisiana, a canny individual, somehow got wind of what was happening and went to Floyd to press him to cease his silliness. Even Buchanan heard something about it and ordered him to stop. Floyd promised both men the same: yes, absolutely, he would do it no more. Then he’d sign another draft. All of this unraveled late in 1860, just as the crisis in Charleston Harbor was coming to a head.
On December 22 Buchanan learned of the entire affair. He was stunned. Floyd’s time in the administration was dwindling to a close. Buchanan asked his vice president, John Breckinridge, one of Floyd’s many relatives, to persuade the secretary of war to resign. Floyd whined and grumbled, and spoke about his “honor,” but Breckinridge privately pressed him, and Floyd finally said yes. Breckinridge told this to Buchanan, and the president felt much relief. He expected to receive Floyd’s resignation at any moment.
The Virginian, however, had his own definitions of such things as speed, and honor. Days passed, critical days. He continued to come to crucial cabinet meetings, where everyone in the room knew the truth and was impatient to see him depart. He did not – and diplomatic Old Buck did not know how to fire him.
Source:
Detzer, David. “Twilight of the Old Union.” Allegiance: Fort Sumter, Charleston, and the Beginning of the Civil War. New York: Harcourt, 2002. 72, 73. Print.
Original Source(s) Listed:
A. Howard Meneely, The War Department, 1861, New York, 1928, pp. 43-49.
Mark W. Summers, The Plundering Generation: Corruption and the Crisis of the Union, 1849-1861, New York: Oxford University Press, 1987, pp. 242-46, 259.
Further Reading:
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