The Evansville journal. [volume] (Evansville, Ind.) 1866-1870, 1866-06-19


usual commission paid by private par
ties, to-wit. one-eighth of one per
cent. on the sales made for his services:
The rates at which the gold was sold
were: SIG, 635, 033 at 1893, $6.350,000
at 1901, $40, 600, 600 at 1309, 81, O60, 600,
at 13l, and $345, 600 at 1315s
Mr.. McCulloch states the general
policy has governed him in directing
the sale of gold as follows: 81
The coin received into the Treasury had
been permitted for some time past TO accu-
mUlate, to be held for the purpose OF faclil-
taung return to specie payments, OF 70 pc
disposed of in any emergency when mlght
render the disposition of 1t necessary Tor
the protection of the national credit, or
preventing such a depreciation OF the ma
tiona1 currency as would affect 1nJurlouSly
the business of the country, and especially
the interest of the laboring and producing
classes. 1t has been my purpose, either Dy
holding or selling, to keep the markeI
steady until the industry of the country,
diverted by the war from Its leg1LlmaIe
channels, should be brought again into 1uIl
activity, and thus prepare the way ior
permanent resumption. My 1nstructlonS,
given at various times to Mr.. van Dyck,
lthe assistant Treasurer in New YORK;
have been to make no sales except for the
purpose of supplying the Treasury Win
currency, or for meeting the necessary de-
mands of commerce, or preventing success
full combinations either TO impair the ma
tional credit or to produce serious huctua-
lions in prices.
The operation of this policy, Mr..
McGnlloch alleges, has generally been
satisfactory, until the recent attempt
TO keep down the price after the I'M
favorable financial news from Europe.
That attempt, and its failure, are thus
described by the Secretary:
The news reached New York late in the
afternoon, but before the Stock Board had
closed. It was too late to obtain instruc-
lions from this Department, and sales were
resolutely continued amid unparalleled
excitement. Had tbs r. been time for Mr..
Van Dyck to advise me in regard to the
news brought over by the Cuba, and to re-
ceive my instructions, the probability is
that sales would have been suspended be-
fore so large an amount of coin had been
disposed Of. But in the light of facts since
developed. I concur in the opinion ex-
pressed by him that suspension of sales
before the demand had been freely sup
piled, would have added to the excitement
and resulted in panic which would have
produced serious and extensive disaster. /
received the intelligence of the unexpected
heavy sales with regret; but have since
sistant Treasurer and his agent was not
only, under the circumstances, courageous
but judicious.
From this it would seem that Mr..
McCulloch regards it as fortunate that
the Assistant Treasurer was unable
to procure instructions from him; in
other words, that he (McCulloch)
would have advised course which he
is now confident would have resulted
in panic and led to serious financial
disaster, The Secretary concluded
his communication by stating, that
but for the unexpected sales in Feb
ruary ($15, 900, 600 were then sold) and
May, " the services of Mr.. Myers (the
AGENT who for months had neglected
his own business in looking after the
public interests at the gold room,
would have been gratuity to the
Government" 1t was exceedingly
public spirited in Mr.. Myers to neg
lect his own business, but as he has
realized for his services the snug little
sum of 100000 odd for commissions
alone, the public will be likely to
think he has been sufficiently remu-
nerated. iyo
Besides the commissions, how
ever, on the sales, the actual profits of
somebody on the transaction is the
difference between 1901, at which the
gold was sold, and say al to which it
rose Immediately after. which on $32.-
600, 900 is about$3 800 900 in currency.
We have no information as to who
bought the gold and realized the
profit, but it is clear that Mr.. Myers,
and those associated with him, had
magnificent opportunity to make
fortune at the expense of the Govern
ment out of his sales. Mr. Myers is
a brother-in-law of Secretary McCul-
loch, and this may explain the reason
why the Secretary is now so well
" satisfied with the action of his
agent; but the people cannot help
thinking that the whole matter has
an ugly look about it.