The Macalister-Stebbins Bond Fraud was a financial scandal that occurred in the State of Illinois in 1859.
He had apparently been influenced in part by State Representative Alonzo Mack (R-Kankakee), who acted as an agent in the transaction.
When the Finance Committee brought the matter to light, the Democratic press pronounced the redemption illegal and demanded an explanation from the administration.
Governor Bissell eventually rescinded his decision and the new bonds were returned to the state.
Lincoln wrote to Dubois, who was still Auditor, suggesting the bondholders be given a "full and fair hearing.