The report entitled "Abstracted Indian Trust Bonds" (House of Representatives, 36th Congress, 2d Session, Report No. 78) is a landmark 1861 US government document detailing a major fraud scandal involving the theft of tribal trust funds held by the Interior Department.
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March 2026 Highlight
Abstracted Indian (Native American) Trust Bonds
House of Representatives, 36th Congress,
2d Session, Report No. 78 (1861)
Context and Introduction (1861 Report)
- The Scandal: The report details the "fraudulent abstraction" (theft) of hundreds of thousands of dollars in bonds belonging to various Native American tribes, including the Cherokee, Chickasaw, and Choctaw.
- Key Actors: The investigation implicated Godard Bailey, an employee of the Interior Department, who stole the bonds, and John B. Floyd, then Secretary of War, who was involved in allowing these securities to be transferred to private individuals to facilitate unauthorized financial schemes.
- Committee Action: The report was submitted to the House of Representatives by Mr. Isaac N. Morris, chair of the special committee investigating the fraud.
- Publication: The final report was ordered to be printed on February 12, 1861, with a supplemental report printed on March 2, 1861.
- Scope: The 365-page document (often bound in black cloth, 8vo) covers the investigation into how the bonds were stolen and the subsequent scramble to recover them.
Core Findings
- Unauthorized Transfer: Indian trust bonds were transferred without the tribes' consent or knowledge, violating their trust status.
- Floyd's Involvement: Secretary of War John B. Floyd was central to the misuse of these bonds, using them for collateral in speculative ventures.
- Government Failure: The report highlights a severe breach of trust by government officials, showing how bonds held for the benefit of tribes were illegally disposed of.
This document is considered a critical primary source for understanding government corruption during the prelude to the American Civil War and the mishandling of Native American assets.