McCULLOCH, Secretary of the Treasury to William H. Seward, December 20, 1865

Mr. McCulloch to Mr. Seward.

Sir: I have the honor to acknowledge the receipt of your letter submitting for my views despatch No. 349, dated November 30, ultimo, from the consul of the United States at London, relative to certain moneys heretofore belonging to the late rebel authorities, held by parties in that city.

It appears from the statements made in the despatch that certain persons in London will, for a consideration, furnish such information and perform such services as will lead to the recovery of a large amount of gold, heretofore the property of the late so-called Confederate States government.

So far as the practice of this department in analogous cases is concerned, it has not hesitated to make arrangements with parties in possession of information, or who will take the necessary steps to secure to the government any property or moneys justly belonging to it, but in regard to which it does not possess sufficient information to enable it to secure it. No general rule fixing compensation has been adopted, the award generally depending, to some extent, upon the value of services rendered and expenses incurred by parties acting on its behalf. It occurs to me, however, that if the consul at London is satisfied, from the representations made to him, that sufficient ground exists for such action on his part, it would be proper to authorize him to make an arrangement with the parties in question to the effect that they be allowed for their services and expenses in the premises one-fourth part of such amount as may be received by government from the source indicated; it being understood that if nothing is secured to government, all expenses incurred in the matter shall be borne by the parties in question, and no allowance be made to them therefor, or for any information given or service rendered by them.

The despatch referred to is herewith returned as requested.

With great respect, your obedient servant,