The New York herald., 1871-09-11
0us Natsseal Rlnasces-rAe ancapacity e
Secretary Boutwell,.

the Treasury and the partisaas Of the admin
lstration, are continually ringing in our ears
the same old story about the payment of the
debt and the assumed admirable management
OF the national finances. kilograms ara
worked up in Washington to that effect every
few days and circulated all over the country,
and the mass Of the people, who know little
OF financial matters, ara too apt to take the
assumptions aud muddy statements put forth
as facts and as evidence Of wise adnilis-
tration Of the Treasury Department. Ii these
efforts to blind the public Secretary Boutwell,
is assisted by clique of bankers and specu-
lators who have fattencd upon the Treasury,
who have become within few years enOr-
mously rich, and who continue 10 amass riches
in handling the public money and securities.
These agents, now called ''Syndicates," are
no more necessary to the Treasury Depart
ment than fifth wheel is to a coach. or
course they are Interested in and got well
rewarded for putting the Secretary and his
financial mana cement.
Let us see what foundation there Is for the
pretences OF Mr.. Boutwell, and his friends.
Fist, then, as to the often-repsated boast
about paying of rapidly the national debt.
Since the Secretary entered the Treasury De-
partment the revenue has been pouring In at
the rate of four hundred millions Of dollars
and upwards year, and there was when he
took Office the stupendous surplus of over
hundred millions. All along the income has
vastly exceeded tie expenditures, q great por-
ton of which income has been in god from
customs. This income has been wruug from
the people by excessive aud unnecessary taxa
ton. If there be any merit in recommending
such burden to be kept mp, in maintaining an
army of ofice-hOlders to porpetnate 1t, and to
keep the Treasury gorged with dead and un-
profitable capital as q temptation for ex.rava-
gance and jobs, he is en.i.led to that. Few,
however, will accord him credit for this. Ex-
capt that he has done all he could do to up
hold burdensome and expensive system of
taxation, partly to get reputation for reduc-
ing the debt and partly with view to protect
the manufacturing interests of his own section
of country, he has had no more to do with
an overflow of money into the Treasury than a
lucky heir has in acquiring the fortune which
a wealthy father may have left. Ila wealth,
wonderful resources of the country ard the
industry OF the people, have supplied him with
the funds which he has not known how to EN-
ploy profitabiy. He has had no trouble in
getting revenue. He had only 10 leave the
Treasury chest open and an overwhelming
stream continued to pour in without any effort
on his part. To use this well and for the best
interests of the couatry only called for a little
ability, but he has failed even in that.
If Mr.. Boutwell, had used the surplus rev.
enue which has been lying idle in his hands in
the purchase of the debt he would have saved
during the period Of lis administration of the
Treasury twenty millions of dollars at least.
There was no necessity to hold from a hun
dred millions to hundred and thirty millions
of unemployed dead capital 10 the Treasury
vaults. For the current requirements of the
government the revenue has always been om-
ing in faster and in larger volume than the
amount went out for expenditures. Had every
dollar been cleared out of the Treasury any
there would have been a surplus again the
next month. But the Secretary has pretended
that an enormous specie reserve of q hundred
millions or so was necessary to keep down the
premium on gold aud to facilitate specie pay
ments. 1t has had no such effect. Throwing
the gold on the market, by the judicious pur-
chase of interest bearing securities, would have
been much more likely to have reduced the
premium on it aud to have brought US nearer
a specie basis. He would, as we have said
before, soon have had plenty of gold again
from the customs, both to meet the demands
upon the government and for a surplus. Gold
would not have left the country faster under
such a policy than it has, and more specie
would have been afoat and in the banks
Holding large reserve in the Treasury is
temptation to excessive importations, extrava-
giant expenditures by the government and jobs
in Congress.
| In the matter of the loan, or funding the
debt at lover rate Of interest, which Mr..
Boutwell, urged so strenuously upon Congress,
he has signally failed. Out of the fifteen
hundred millions to be funded only two hun
dred millions of the five per cents have been
taken, it, indeed, it can be said that the
amount in the hands Of those agents called
''Syndicates" has been taken. Admitting that
these two hundred millions have been dis
posed of, after the most extraordinary efforts
Of the Secretary, and after they had been on
the market six months, the cost of conversion
through the Syndicate agency and through
other costs 10 the Treasury will make 1t
transaction Of little benefit to the country. As
for the balance of the three hundred millions
of five per cents, the three hundred millions of
four and half per cents and the seven hum
dred millions of four per cents, there is no
prospect Of the Secretary disposiug of these.
The "Syndicatcs" may yet slip up 10 their
efforts to place portion of the two hundred
millions, for we do not understand they have