The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-06-24
sales Of Cola BY the Treasury Depart

Sales OF Gold BY the Treasury Depart
ment.
II is evident from tho ventilation tbs sales Of
gold by the Treasury Department are getting
that both Congress and the public are very much
dissatisfied with the transactions. The Secre-
tary Of the Treasury committed great blunder,
and we suppose he sees 1t now. First of all 1t
is not legitimately within the sphere Of his
duty to enter the arena Of the bears and bulls
in this city to speculate with government funds.
He Is not banker or broker now, but high
Official Of the government, and the gold he
used belonged to the people. We are not dis
posed 10 think Mr.. McCulloch acted with any
other than the most honorable and best inten-
tions. He thought, doubtless, he was acting
right |; but, as 1t has turned out, he
made q mistake both as to his duty and
financial policy. There was no necessity to
sell gold; the government did not want cur
rency, and if it did, the currency could have
been obtained in another way. The motive
assigned was to keep the price Of gold down,
q matter, as we have said, the Secretary had
no right to speculate in. But instead of keep
ing gold down it has gone up since nearly
forty per cent In fact it commenced to rise
Immediately after the sales There have been
other causes operating the state Of things in
Europe, rs one for example, to send gold up,
but we have no doubt that the sale itself Of
such vast amount contributed to the RISE
That is, the effect produced was just the con-
trary one to that expected and operated for.
II depleted the Treasury of considerable
amount Of gold and facilitated its expectation
abroad. The direct loss to the government,
taking the difference Of price between what it
sold for and what the price of gold has been
since, has been something Hike ten millions
OF dollars. In plain terms, the government has
sacrificed within five or six weeks about ten
millions by this laundering transaction.
Mr. Van Dyck, the Assistant Treasurer at
New York, made a still graver mistake by act
ing upon his own authority in selling large
amount Of this gold. The plea Mr.. Van Dyck
puts in and which Mr. McCulloch urges in his
behalf u.s. that there was not time to commune
cate with Washington on one occasion when
great deal was sold, and that, therefore, the
Assistant Secretary acted upon his own judg-
ment and authority. This was when the Cuba
from Europe. Mr.. McCulloch and Mr.. Van
Dyck say this news arrived toe late in the
afternoon, though before the stock board
closed, to communicate with Washington. The
Secretary adds that could Mr.. Van Dyck have
communicated with him the probability was
that he would have ordered suspension Of
the sales before 20 much was sold. This ap-
pears to us to be very lamo excuse for such
an important and disastrous transaction. The
telegraph could have been used and an
answer to . message might have been re-
ceived within half an hour or in less
time. There was no necessity for the Assistant
Treasurer acting without special instructions,
and II was his duty to use the telegraph to
obtain them. We have no disposition to i'm
pugn the motives Of these high officials; but
may not one or the other, or both, have been
duped by designing menu There are cunning
gold operators and stockholders among the
politicians and friends that surround them, Of
whose schemes 1t might take wiser head than
that Of either to penetrate. Evidently some
body has been immensely benefited. Do any
Of these political or personal friends know
anything about 1t? Can Thurlow Weed give
us any information on the subjects Let US
have light. As Congress has taken up the mat
ter we hope the whole affair will be thoroughly
ventilated. Above all we hope some action
will be taken to prevent similar laundering
transactions in fut ure.
PENSIONS To THE S0I nIERs or ruE Wan or