The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-12-03
WASHINGTON.

ROnds.
The Treasury officials here complain that short
article published In the HERALD q few days ago,
aggerates the degree OF inconvenience to which. I'M
der the regulations, merchants are subjected in
the execution OF ponds given to secure the payment
Of duties. These regulations provide that mo bond
shall be executed by procuration except by prtncl
pals the effect OF which is to require suretes only
TO sign In person, leaving principals at liberty, a.
heretofore, to act by attorney. Under the practice
formerly obtaining powers or attorney authorized
the name OF party to be signed surety to bonds
without limit either as to number or amount
merchant might be surety for thousand, hundred
thousand or million OF dollars without being aware
OF 1t; and where az at New York, hundreds OF such
bonds were executed daily 1t was almost impossible
for either the surety or the government TO keep
track as to the extent Of his liability. or course
this consideration is Of prime importance in provd-
ing for the security OF the revenue The Treasury
officials contend that the taking OF responsible
ties IL necessity imposed by the present system or
revenue laws under which the payment OF duties il
deferred to the last moment. While goods are in
transit under transportation bonds the government
has no security whatever except that or personal
liability. While they are in warehouse and under
government control the presumption Is that col
lateral security Is thus held, which renders less
strctness necessary with regard to the quality OF the
doubleday be true were bonded warehouses inacces-
sibe to burglars and fraudulent and collusive
deliveries or bonded goods unknown. The excu-
sion OF Custom House brokers from signing as sure
ties for those by whom they are constantly en-
| poyed in the transaction OF Custom House
business results from the construction given
| to section twenty-five or the act OF March
| l, 1922, which provides that mo clerk or
nred person, IN the constant employment OF another
| shall become principal or surety to any bond to
which his employer IL party" The Treasury regu-
latiOns as whole made for all the states, not
for any particular state, locality port district
| The inconvenience complained OF at New York arises
simply from the necessity felt by the Treasury De-
| partment TO 80 enforce the revenue laws as they
| stand as TO accomplish beyond question the object
primarily intended by them-namey, the security OF
| the revenue. II embarrassment to trade results
rom carrying out this principle it Is caused by de-
| fects in the revenue system, from which the law
making power only can AFFORD relief
The New York merchants nevertheless seem TO be
| greatly opposed to the new regulations and arc
| making a strong effort to have them abolished.
Several letters have been received by Secretary Nc
CulI0ch from New York on the subject, Of them
| den0uncng the regulations as harsh and unjust and
others containing threats against the Secretary him
SELF In OF these letters the writer the fol-
| lowing emphatic language -
| II these regulations are not repealed within ten
| days will be one OF q hundred 10 my influence
| aud money to have you removed.
The author OF this threat signs his name in full.
Six OF the ten days. grace allowed by the excited
merchant have already expired. Whether the Sec
retary will cave in before the remaining four days
| OF grace expire know not but am informed that
| Treasury official ycrsed In Custom House matters
has been sent to New York to investigate the whole
subject and report whether there exist any real
grounds OF complaint requiring a remedy.
| Secretary NIcCuiIoch's Annual Report.
Considerable CONSERVATION created this after.
| noon ut the Treasury Department by rumor having
reached the Secretary that his annual report in
the hands OF outside parties. All the officers OF the
Treasury who had anything to do with the danger
GUS confidential document were summoned to APP
pear before the Secretary and were critically ex-
amined in regard TO the statement. All, OF course
| sOemny protested their utter ignorance OF the
| matter. Mr.. McCulloch declared that the statement
charging that his report had gone ont Of the Treasury
building into unauthorized hands was incredible
s.Iie would not believe 1t, because such thing 4
| Impossible p, Certain correspondents or the press
asked the Secretary II, In case they should show
MIN three lines OF his report which, after
having been compared by him with the report,
should prove TO be correct no would be willing TO
give his report for publication. II the Secretary felt
| so sure that 1t IL impossible the document should
| get out there was no reason why he should not
comply with this ofrer; but he did refuse. He SAID
| he did not want to he convinced, and would not
agree let the report out, even though paragraph
OF IL should be shown him In proof OF its being on
the street. Never were Official brains so earnestly
taxed for the safekeeping OF State secret. Every
precaution that could be suggested and every safe
| guard that ingenuity could devise was
| employed to keep from the public the
public. The superintendent OF the Printing
Division confined the printing or the report to two
| men only and surrounded them with perfect aby-
| rinth OF checks and precautions. The same was
l done with the folders and sttchers. Several de-
| tectivcs were posted to watch the wofkmen, and
other detectives we're set to watch them Yet, not
withstanding all these obstacles the Treasury on
| cias are In despair over the evidence they have
obtained indicating that the report has found its
| way outside OF the building.
safe Deposit Of Public Funds.
In accordance with recent order OF the secretary
OF the Treasury to collectors OF internal revenue
requiring them TO deposit the government funds In
their charge with assistant treasurers and designated
| depostares, the last named are required TO keep
open their onices somewhat later than usual In the
day in order to give collectors time 20 close up their
cash accounts. Several applications have been made
TO the Treasury Department from collectors Of inter
nal revenue for safes In which TO keep their stamps
| for distilled spirits and tobacco, prescribed by the
| new Internal Revenue act. These stamps being
charged to collectors money 1t is necessary they
I be kept 10 some more secure place than ordinary
desks or drawers. II Is probable the Commissioner
\ OF Internal Revenue WILL In his report renew his
recommendation to Congress for an appropriation
for this purpose the necessities for the safe Keeping
OF tue stamps being considered greater than hereto
| FORE
Another Financial Measure Proposed.
\ Hon. John Lynch. OF Maine. has had correspond
ence with prominent gentlemen here relative to
financial measures 10 which he has gwen attention.
| The bill introduced by him providing against the
podue exnausfon NJ the cpyrencv ontv prOposes the