The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1868-07-06

The National Bank and Treasury Rings
PooI-The National Debt g he Again Mani.
pulated BY the TvcasuFv Rins-Comnissi0n
On the Purchase and Sale Of United States
Bends AID Gold-The Laws Prohibiting
United States Deposits In National Banks
and Sale q Bonds on Commission.
WASHINGTON, July 8, 1858.
The jobbers are interchangeable. Besides the regular
oboing bills introduced ana carried through for the
national treasury to speculators pockets every other
measure, however benehcent Is turned into job
bing vehicle.
The general desire Of the people to lessen their bur-
dens Of taxation by reducing II 1t be done hon.
esy the interest on their public debt 10 taken adj
vantage OF by the Treasury ring to aid in getting
through that gigantic job known as the Sherman
funding scheme. Though twice defeated this precious
job has altogether too much money in 1t to be readily
given up, and its Industrious author may be ex-
pected to spring II upon the Senate when there are
but dozen or present and get II through without
calling the yeas and nays. IL may not be generally
known but II Is nevertheless true that many i'm
porant measures pass the Senate when there are
less than quorum present.
Very few people understand that the Sherman
funding scheme IL nothing more less than Trea-
sury ring pool into which ia be put the entire ve
twenty loan. or some two thousand million dollars
The bill, as last presented provides that the Secre-
tary OF the Treasury may issue bonds In such forms
and denominations he may prescribe; and that
said bonds shall be used for the redemption, pay
ment or purchase OF or exchange for the interest
and non-nterest bearing debt OF the United States.
The second section provides that the holder of any
lawful money OF the United States TO the amount of
$1,000, may convert the same into bonds, ''under
such rules the Secretary OF the Treasury may pre-
SCRIBE"
1t Is not at all dinicu to see that the Secretary OF
the Treasury will prescribe that a few favorite
national banks and brokers may purchase the old
bonds and sell the new allowing them "trinng
commission each, and whatever profit can be
made from the possession OF superior infotma-
ton and an unadJusted balance OF Sl5,00OOO0 or
$2OOO0,O00 constantly on hand for little outside
operations.
l am informed by one who has had most excellent
opportunities OF knowing, that Messrs. jay Cooke Co.
have made since 1850, about fifteen million dollars
and think the estimate not far out OF the way. 1t
Is within bounds TO state that If entire national
debt must again be manipulated by the ring fully
twice that sum will stick to the hands through
which 1t passes, and that Mr.. sherman's zeal for a
funding bill il stimulated by desire 10 give his
friends job rather than wish to relieve the people
from any portion of their burden OF taxation.
IL IL Is absolutely necessary TO change the form of
our national debt, let law be well matured by u
full Congressman during the heated term, while
ALL let the conversion be made by the officers OF the
Treasury Department. BY a report now before me
find that Mr. Jay Cooke received for commissions
and expenses on the sale OF bonds between October
/, 1852, and July 81, 1853, the sum OF million
three hundred and fifty thousand and thirteen dollars
(tl. 0l3), Of which four hundred Ind thrty-hve
Thousand seven hundred dollars (s43s, 70O) was
paid to him as compensation, responsibility, &C.,
the balance going to subagents for advertising &c.
What would DC said OF an appropriation or $435, 900
for paying the salary OF general agent for ten
monthss And yet that was what was virtually done,
only II was called commissions, responsibility &C.
II Senator Sherman Is really anxious 10 the
people during the short remainder OF this term let
him call up the bill, now sleeping IN his own commit
tee, prohibiting United States deposits In national
| banks within fifty miles OF United States Sub
Treasury Depository which passed the House almost
unanimously last February. Those eleemosynary
institutions as showed In my letter In the HERALD
OF April rs, have average deposit OF fully $27, 0o0
900 Of the peoples money ON hand most OF the time
and without paying a cent interest thereon.
There Is a law much needed TO prohibit the Score
tary Of the Treasury from paying Commissions tn,
| sale Of United States bonds or gold. These two
measures can be passed this session. and IL senator
sherman desires 10 serve the people he will direct
his attention to them. II he only desires to the
Treasury ring and national banks he Will keep In
his present course aud see where he will bring up.