The New York herald., 1868-05-23
GOVERNMENT SALES or GOLD SINCE 1861.

of Snle-Defence Of the Secretary,s Policy
Of secret Sale.
The suhoned letter from Mr.. Van Dyck, the
Assistant Treasurer at New York, forms part OF
document lately presented to Congress by Mr.. Nc
CullOch:-
Hon. II. MCCULLOCH, SECRETARY, &C:-
SIR have the henOr to enclose herewith a state
ment showing the amount of gold soh since 1861.
the names OF inc persons through when the same
was sold, the amount Of commissions paid for the
services rendered. and the net proceeds in currency
realized by the exchange. Ever since the reception
Representatives on the 18th ot March, two clerks
have been diligently employed IN searching the rec
gather the details OF this report of which nearly
every substantive fact has already been communica
ted to Congress IN annual or special reports from the
1t will be seen from this statement that the whole
amount OF gold sold at this port from March 3, 1851,
allied from such sales $2s3, 1852, 1850 92 and the
amount Of commissions paid S2Sl, $50. These com
the par value OF the gold sold In regard to the com
missions allowed, 1t is proper to observe that while
no commissions have been allowed paid on trans
actions directly with thisdepartment as In the Of
customs cotton and tobacco certilCates) no higher
compensation than one eighth OF per has Deen
The rules of the New York Stock Exchange prescrb-
ing the commission to be charged by its members,
the cnsom of private citizens in the TRANSACTION OF
their own business, and the uniform practice under
my predecessors IN Office seemed to mark this
pensaton as fair and reasonable Close OBJ
whatever apparent economy there might be
In accepting pronered services In this par
ucuar branch or business, there would Ia
reality be no saving to the Treasury benefit the
commercial community in nominal reduction Of
the commission allowed: Abundant opportunities
would he found to more than compensate for any
ducton in the customary rate OF brokerage; and,
whether this indemnity were drawn from the Treas
ury in the reduction OF ,ts premiums or from the
community In virtue OF knowledge possessed, its
tent would probably be graduated by the adrotness
rather than The conscientousness Of the individual
employed.
lii the early stage OF my connection with the
Treasury it was my custom to confde the sales OF
gold to various firms and individuals enjoying good
regulations for responsibility and experience. The
desire to share IN this business, as well for the
Of the Treasury which IL involved, soon nlied my
otfce with applicants and their friends until the
SATISFIED, also % that % the informaton H impaired impaired
was used for individual profit, and that
the employment Of q number OF agents facili-
sales, deemed 1t expedient to entrust
the business to two or three firms Of established
character and credit. BY this means the Treasury
was relieved from the Responsibility OF MINOR de-
hveries to purchasers, the gold being handed over
each day on the receipt Of certified check for the
lett the distribution OF the gold and the risk OF any
default in payment or delivery to his customers.
jealOuses may have been created the part OF
participants, am satisfied the pubic interests have
been subserved by the measure.
With the exception Of the sales for Custom House
certificates (made under the administration Of Secre-
tary Chase. Of cotton and tobacco certificates,
issued to facilitate the sale OF captured and aDan-
doned property belonging to the government and
two or three instances where sale OF gold was made
without the Intervention OF broker lin Of which
any commission paid), all the sales detailed
In this report have been made In the open market
the prevailing at the time and with full oppor
tunity for any person desiring purchase to acquire
the same on the terms governing individual trans
actions. TO the person requiring ha gold for legt
supply is drawn-whether from individuals, the
banks or the Treasury. II he obtains 1t at the
bat hon INN oil ttIy,tn
qurements are subserved 1t is only the speculalor
for rise or fall who deems it important that the
gold sold from the Treasury should bear q distinct
label as II 1t differed from the same commodity ia
private hands But the reason for the demanded
publicity often springs from other sources than
slderatOns of puDc interest," I Is designed en,l-
BILE spectators to measure the quantity offered; to
reduce the premium IN anticipation Of sales by the
government; to enable combinations to control the
price II limited in quantity; TO stand from under" II
danger threatened. Hence the cry Of secret sales,
as II our sales not made in the open market un.
operations Of the Gold Room; az II they were not vir
tually made at auction, with liberty to any one to
purchase at the going rates, but without compu sion
to part with the gold unless satisfied with tle price
obtained.
sharp business men OF New York in the regulation Of
their own business interests can be improved upon
by the adoption Of different system In the same line
OF transactions Oh the part OF the government But
it has always happened aDd will continue 30 to do
until specie payments are resumed), that the opera
tOns 0f the Treasury Will run counter to the interests
OF the speculative or commercial classes OF this city,
II gold is boarded in the Treasury the commercial
classes cry that the sDews OF trade are contracted
and that they are left prey TO SPECTATORS who,
under limited supply OF the precious metals and
the constant drain by customs enabled TO con-
troll the premium. II the Treasury stimulated by de-
mands for currency 10 meet the acquisitions drawn
against IL, sells its coin and utjiLeS the premium,
forthwith shrek arises from an opposite quarter
and it Is denounced for interference with the market
for distressing the banks by withdrawal of cur
rency, for boarding "greenbacksn and want OF
publicity In its operations.
Under these circumstances 10 has uniformly been
my cndeavor TO manage the affairs OF m once
according to my estimate Of the public inter tsand
without particular regard 10 the wishes c,asses
am not conscious OF having used the IL dlsore-
tion with which you have from time 10 IT. invested
me other than for The promotion OF the eucral wei
fare, deemng the business Of this grea commercial
and financial centre intimately related 10 the pros
perity OF the whole country. No person can bear
competent witness than myself TO the unsirink
ing fidelity and sinpleness Of purpose with when
you have endeavoed to subserve the interests of Tho
Treasury and to maintain the public credt in all your
instructions ana cons ulta;,ons with this onlce--
Sbors which VIII bc more fully 9ppreclated when tho
passions and prejudCes OF the day shall give place
10 sober thought and honest conviction. Respect
fuzzy, your obedent servant
II. u. VAN DlCK, Assistant Treasurer