Nashville union and American. [volume] (Nashville, Tenn.) 1868-1875, 1870-12-03
BOutNeIl,s Financial plans.

BOutygeli's Financial Plans.
The New York Express has the following
In regard to Secretary Boutwell's plans
The working of the finances and the
course OF speculation in Wall street for
some time past, have been regulated al
most entirely by the situation in Europe,
with its varying changes. London, more
than ever, has asserted its sway over the
financial world. and New York has respond
ed to every whim Of the London Stock
Exchange. The approaching session of
Congress, and its prospective finaneial
legislation in connection with the future
financial policy of Secretary Boutwell,. are
likely to prove an element more powerful
in controlling our finances and speculation
than the events in Europe or the fiuctua-
tiOns of the London Stock Exchange. Thus
Washington, for the time being, is likely
to dethrone London in Wall street and
elsewhere. We are led to these remarks
by some vague rumors in regard to new
and startling Treasury policy, which have
been floating on the street for some days
past, and which have oaly just now taken
the shape of tangible political and finaneia,
gossip. This remarkable story seems t
have originated with some of the accredit
ed friends and advisers of Secretary Bout
well, which give it peculiar significance.
1t is unOfficially announced that the Secre-
tary has Presidential aspirations, and that
this new policy Is the first move toward
advancing those aspirations. The start
ling financial programme runs in the vein
that the Secretary is to utilize about forty
millions of the idle gold in the Treasury;
or, In other words, this amount of cold is
to be sold and the currency proceeds to be
invested in fve-twenty bends. This is
understood to be the preliminary step to-
ward the practical operation of the funding
bill passed at the last session of Congress-
That bill provided that the Treasury could
receive gold on deposit at an annual rate
OF interest not exceeding q per cent; and
1urther, that certificates Of deposit could
be issued for such gold, and only % per
cent OF actual gold should be retained
against these certificates-the balance of
70 per cent to be used in paying off the
five-twenty bonds. If this new policy
should be carried ont, then the amount of
gold LET loose on the market by the Treas
ury, November to January inclusive,
would be as follows:
November interest..............S %, 1000, 900
January nterest.................. Is, 00O, 600
Redemption of 1871 bonds. 1000, 600
Treasury sales..................... 40, 900, 600
Iota'. 100, 900, 900
This flood of gold would of course only
make the holders of it too anxious to de-
post 1t III &c Treasury and receive interest
thereon. Thus il will DO seen that M
Boutwell, could carry out one portion of
the funding bill, and this of course would
lead to the practi al operation of some
other sections. 1t is further stated that
the Secretary viii urge Congress to rein
state the foreign clause in the funding be.
as well as the compulsory bank clause.
The preceding forms an outline of the new
Treasury policy, which Is at present the
subject of much gossip On the street and
no little discussion in government circles.
IL Is not our province to indOrse this
scheme, nor yet to vouch for its truth in
detail, but, nevertheless, il is beginning to
assume prominence and importance as a
probability, and therefore we give it to
our readers Just as If is floating on the
street, leaving them to draw their own
conclusions. In this connection, however,
1t may not be ont of place to review for a
moment the probable effects of this policy
if carried ont in detail The sale of forty
millions of gold in the space of thirty or
sixty days by government, in connection
with the large regular disbursements. to
say nothing of the receipts If gold from
the Pacific slope, would undoubtedly cause
large dimunition in tho number of SOL
vent gold brokers and spectators. II is
rarely possible that il the panic which
would follow IN the Gold Room we might
see the greenback dollar on par with the
gold dollar, although this might be but for
an instant. Still, il that should be the
case, then it would remove any barrier
which the public credit act is supposed to
present against paying off bonds before
greenbacks are par in gold. A consider
able portion Of the money let loose in pay
ing for government bonds would undoubt-
edly find resting place in those securities
which represent the grand System of in
ternal improvements which have rendered
American skill and American enterprise
renowned the world over.
The Stock Exchange could hardly be in
sensible TO this great increase of available
money, and we should he likely to witness
an era of buOyancy aud excitement there
as electrified Wall street in the paImy days
of paper money during the rebellion. In
view of these eventuslities of the financial
situation, the session of Congress and the
action of the Treasury Department in the
future viii be awaited with intense in
terest
If this story should prove true, even to
a very moderate extent of what is stated,
then Well street will be unquestionably re-
lieved from the stagnation which has been
expressing it for the last three months
These are unquestionably revolutionary
times, and it is hard TO tell what Secretl-
ry of the Treasury with Presidential as
piratiOns may or may not do to cap his
vaulhng ambition. If gold is forced down
to about par, and bonds down in currency
and up in gold to par-sfter that what
then? Wall street will be lively, and Sec
ratarv Routvell a well-disnnssed man