The New York herald., 1871-09-04
ABOUT BOUTWELL,.
The Leading Republican Newspaper Of th'
West Suggests tho Impeachment
Of Boutwell,
How Our Bonded Debt is Duplicated
Two Sets Of Bonds Bearing Interest.
Secretary Boutwell's Artillery to Cover the OPP
erations Of tho syndicate-The Syndicate Job
Forstold by the Herald Years Ago
A Few Very Plain Questions

WASHINGTON Sept q 1871.
Mr.. Secretary Boutwell's order calling In one
hundred million dollars OF fve-twenty bonds serves
double purpose. It Is q sort Of an artillery to
cover and protect the operations OF the Syndicate
and &C the same time 1t can be used to an excellent
advantage as material for his promised campaign
speeches. To be sure, he might as well have called
IN that amount two and o halr years ago and saved
$o,0oOsO0 per year, or $15 100000 by this ttme he
has had about one hundred million dollars lying
Idle In the Treasury ever since he has been In oce
with more than enough to meet the current govern
ment expenses coming In every day from an over :
taxed and long suffering people. Why did ne not
call In that hundred millions two and half years
ago' Simply because the Treasury ring-now called
the Syndicate-was not prepared with the proper
manipulating machinery. This ring job was FORE
told In the HERALD years ago. Turn to page Of
the issue of November 20, 1858, and you Will fna
the fOlowing:-
There was some talk here few months since OF
sne esapllsmment y, ., great American banking
provided Certain matters then in ad,srmeat turned
out sattsfactory-nOt to put too fine point upon It,
" the Funding 6tu could be got through in shape
ruiied, btW the ring are IN hopes or getting 10
through oerore Ne,o Pear IN ''sattsacto,Y shape
so that It Is possible the Secretary may find most
excellent pickings outside the Departments
In the course Of time the Funding bill was wor.
ried through Congress, under the pretence OF re-
ducing the interest of our public debt The great
"American Banking House" was accordingly estab-
lished in London, and our Secretary OF the Treas
ury has gwen the projectors the very Job that the
HERALD years ago said was IN contemplation.
The Syndlcaters have been fishing for the job for
the past three years. and have but Just got mold Of
1t. In the first place the Funding bill they first
tried, and which they hoped to get through before
the close OF 1868, failed altogether 1t was too bad
for the average Congressional stomach The
people were SO Disguised with the rings
secret manipulations Of government funds
and bonds for mere speculative purposes
that Congress was more than usually cautious. An
effort was really made to pass an honest Funding
blll-a bill that would reduce our interest burden
and not give favOrite brokers a chance to gov
ernment funds to bull and bear our industries for
their own profit. 1t was not, therefore, until Janu-
ary 20. 1871, that the bill could be passed. which,
in conjunction with the old designated depository
law was found satisfactory to the rng-not exactly
satisfactory but the best they could get.
THE NEXT STEP
was to give the ring exclusive control OF the bus-
ness. II could not be done at once; plausible ex-
cuse must first be found Accordingly the loan was
put upon the market. Alarge number Of the most
respectable bankers In the Union were appointed
Mr. Boutwell, very well knew they could not sue
ceed. The French anu German war was raging, the
market was In Just about the worst possible cond1
ton and the agents were allowed only One-lOurth Of
one per cent commission, only half the amount al
lowed by law. The new bonds were delivered to the
agents only upon
at par In case or purchase, or the delivery OF old
bonds IN cases where conversion only was sought.
The interest stopped on the old bonds and COM
menced on the new the instant the exchange was
made. For example, If you converted 100000 you
nol1n lynI nar n rhA Nih hand fn fhn dor
OF exchanging and charged with accrued interest on
the new bonds up TO the same date The govern
first offered. 1t Is possible that the Old agents
might have succeeded at one quarter per cent COM
mao 9sen few gaven monhs ne a
ter the close OF the European war. 1t is certain
that they could have done far better than the Synd
cate if the same market and terms mad been Of
fered but no such terms or opportunity was once
offered or hinted at by Secretary BOUTWELL, he very
evidently intended they should not succeed. few
days ago, when the European struggle was finally
settled and the foreign money market visibly i'm.
proved, Mr. Boutwell, summarlly broke up the old
Isl 800, ,O00. .0Oo) from the market, reserved"
$50, O0OoOo for the national banks and placed the
balance In the hands OF the Syndicate upon terms
that they could not fail to make money at.
THE CHICAGO TRIBUNE,
by all odds the most influential republican paper in
the West, gives the following clear statement Of MIR.
BOutwells terms to the Syndicate:-
The result of all the negotiations of the Secretary Of
70 negotiate the loan the ordinary has turned
the to the American the
@ snsss
sauk n"s act ha.
asss. United sass. BOND! public With q.
%sr Of NE United State. security therefor The
Enp Be @ s.S c '
gold with the proceeds OF the sale OF the five
Doss that isev are Called in io redemption now Il tue
Syndicate may subscribe for $25Ooo OF the cents
he mo back
govesnmaeent deposit and deposit $s ooOuGo Of hve.wen
@ Of asS sS1 TS 1i ss'as Hs as
BY the o the % ps os IS % e e
ranne. is plain that o .ne Syndicate will be drawing
S I %s .sf ss r
the ordinary mode of negotiation is that by desig
depS.i. the sovsrnmen, practically guarantees @
s that s ns De Asa This %
be the whole secret Mr. Bouwes Syndicate negotiations
the government in interest for two years time
II may be Others o 'ne OF ms aranEe
edy deep Anancerng and requires immense fiscal alen,
seems 10 have been overooSed All complicated machinery
o and @ in the % ,
transacon whereas the law contemplating mp SIMPLER
have taken the statement OF Mr. Boutwes terms
to the Syndicate from the editorial columns OF
leading republican paper; IL Is correct except In
one particular. The Syndicate, SO far as is known
outside OF the ring, does not pay over money for
tho bonus and then receive IT back on deposit; it
merely pays for the bonds In certificates OF deposit
No money Is used in the transaction except to pay
interest, commission and other expenses OF the
ring, and 1t all comes from the peoples treasury.
The mission OF the Syndicate Is to receive money;
the business OF the United states Treasury to pay
IL out.
LITTLE WONDER,
them that the Syndcarers have "taken" $50 900 900
of The new bonds lt required no real gold TO do IT,
What Fisk, Jr., would call "phantom gOld' answers
every purpose. Certificates OF deposits OF coin IN
national banks, when no such amounts OF coin ex-
lat are easily written. and are freely taken IN ex-
change for bonds So long as Secretary Boutwell,
holds the certificates and pays interest on
the bonds the Syndicaters are all right,
and with a monopoly OF the market 1t
VIII be u great wonder II they cannot
unload In ninety days and take up their certlca es
Of deposit by turning IN an equal amount OF old
bonds. II they la IN that what Is easier than 10 get
an extension OF time, and let Secretary Boutwell,
turn In required amount OF old bonds under yes
terdays call with the hundred millions surplus
funds now In the treasury The new bonds have
gone out, and in good time the old bonds Will doubt
less be got In; bui the taxpayers must suffer terri
bly,. Tne unofficial members of the ring are, how