New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1870-03-04
WASHINGTON SKETCHES.
HOW TO NEGOTIATE THE NEW UNITED
STATES LOAN.

HOW TO NEGOTIATE THE NE" uNilhD
STATES LOAN.
w,sur>crox March 1t is simply question OF
,,otbods II the loan can he equally well placeu
U.itHout a commission, l suppose nobody wants 10
nav ono The real question is ono OF fact "he'her
tbjs can be done You say, Leave that question 10
the Seeretaryv If he thinks it best to spend some
,llio,s IN enrich bankers and brokers' let us trust
to his Judgment that it is the best thing for the
country But may not Congress properly say, No.
we have had some very instructive experience III
this business Of placing enormous loans ana we
propose to avail ourselves of the light II has al
forded."
lis no secret that very great fortunes have been
made by those who have stood nearest the Treasury
and had the management and manipulation of our
GREAT war loans. TO renew these loans, in toto, as
proposed. offers the same temptations, and the
facilities over again. And 10 say this, is not TO i'm
mite ANYTHING culpable or dishonorable TO the head
of the Treasury. The Secretary may be a man OF
unimpcachable honesty all confess him to be, and
vet not De quite nfalhble in judgment or conduct.
But because No have confidence in the Secretary, is
IL wise TO overlook the great fact adverted to, and
rot guard the future action of the treasury Con-
gress is the principal this business, and the Secre
tary but the steward.
There seems 10 be not only no improperly in say
ing to Mr. Boutwell,, but an imperative duty
Of Congress- to say 10 him, Mr. McCullOch paid
thrcc-quartgrS Of one per cent for negotiating
the last great loan of the war, when II would have
gone on the same terms for nothing, or at broker
ace Of one-eicith per cent" In this case millions
were literally shoyced ont of the Treasury into the
pockets OF individuals without a dollar of CORE
spending benefit to the Government. Is it not n
highly proper thing for Congress to say to Dir. Bout
well We do not propose to permit any such useless
and lavish Disbursements in the future" And yet
we have not word to say against the integrity Of
Dir McCullOch. and we know no man who las. But
without charging cupabihty We may fairly say he
did an unusual and iueXcusable act. Shall not Con-
grcss profit by experience like this
But why not advertise" your loans in the pro-
posed operation in lieu of making of costly
intermediates in the shape Of brokers and bankers
This is precisely what Mr.. Boutwell, is doing every
day in his purchases of bonds and in bis sales OF COIN
lie uses 10 Intermediates for these Purposes. And
does Mt the method approve itself to the understand
ing of every man familiar with the subject
What is suggested therefore, is in perfect har-
ihony with the daily practice of the Department
itself But more than this, it is in har-
mony with the practice Of the two great Governments
of France and England. Do they put themselves into
the hands of brokers when they want TO shift
their loans or make new ones? Not at all.
They publicly announce their wants, and
the announcement is all sufficient to
accomplish their purposes. The Treasury bureau in
each is fax moro potent in both countries than an
army of brokers and bankers. Why shouldn't it he
80 with us? We are now known all over Europe as
a great debtor state, and our securities are to be
found on every Bourse. and quoted in every
market Our credit and resources have been under
the fun blaze Of pablo discussion these years.
Our bonds are as well known in the towns and vii
lagos of Germany and Holland as those of any
European Government And thus we need neither
heralds nor hackers The fact that we had to send
an army Of agents. during great straits in the
war TO thump at every mans door in pursuit of
money, is no index to proper method now. We
have gone by the period Of our great necessities,
and may not properly discard the costly agencies
of that period and transact business in the eco
Domical adopted by the two greatest nations
of Europe
The difficulties and expense of collecting our cOu-
pOns in Europe practically of the smallest dmen
sious and do not annoy Obstruct holders in the
least There is 30 much Of the business to do that
the rivalry Of brokers in every market where the
bonds are sold reduces the sum charged for cOlec-
ton to the lowest poSs BILE fraction. No arrangement
can be made that will be any better any cheaper
than the one which has grown up of itself in the
natural way, and 10 which this vast business has
already accommodated itself JsP.