The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-09-30
CCTCBER'S PUBLIC DEBT STATEMENT
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BOUTWELL, IN A QUANDARY.
How to Negotiate Two Hundred Million Dollars
Of New Bonds and Not Let Them show in Off,
cial Monthly Statements Until the syndi-
cate Gets Ready-A Rapid and Enor-
nous Increase Of the Public Debt
The Law OF Congress VIC
lsted-Secretary Boutwell's
New Departure.

WASHINGTON Sept 90. 1871.
! When Paymaster Hodge, the defaulter, took the
urst step IN the path that to oil appearances will
lead him to the Penitentiary. lie unquestonabIy
thought himself guilty only OF trl1iug irregulary
Of merely borrowing o small sum OF government
money, that could easily be repaid from the profits
Of his specuatons. SO Secretary Boutwell, doubt
less thought that when he entered into the syndi.
cate arrangement he should DC able TO manage the
business so as to avoid any very serious violations
bf the laws Of the United States lie knew-that the
pct OF Congress authorizing the refunding of the
public debt, approved July a. 1870 expressly declares
That law shall be construed to authorize any In
trease whatever of the bonded dobt or the United
States. He knew that this law was his sole guide,
enacted by Congress expressly to control his
course In placing the newly authorized issue OF
ti,5OO.Ooo.o 600 OF bonds upon the market.
BOUTwRLL IN A QUANDARY.
= Now lt has been time and again rriumphantly an
bounced by the administration organs. that Secre-
tary Boutwell, has completed the negotiation or
$500 OOO, 900 OF the new I've per cent ponds. The
public debt statement OF August shows 500,
0T the new five per cent bonds outstanding. On the
t7th and 18th of August 1t was aulhortatvey given
but al the Treasury Department thai the syndicate
paid In during those TWO days 100000 in coin for
new bonds; yet the September public debt state
nent shows an increase Of only $l,39a $50 Of lhis
class OF bonds outstanding. Just how the Secretary
eau manage to dispose Of $25,0o0,O0o Of the new
bonds at q single operation and not show Two null
Inns increase In his debt statement made out
hearty two weeks after the operations remains to
be seen.
THE NEXT DEBT STATEMENT.
7 The public debt statement, Issued september l,
annouuc es that $62 100 $50 Is the total amount OF
lhc new loan outstanding, and the forthcoming
statement for october will show material increase
pf the amount, unless Secretary Boutwell, yields to
The force OF public sentiment ana gives truthful
statement Of the outstanding debt, which he dare
mot do as the law forbids any increase whatever.
II he enters the fun $500 600 of the newly ncgo
hated bonds npOn the October statement, he must
show the enormous Increase OF the pubic debt OF
4l37 $50, 49, less the purchases or hvctwentes dur
tng the month OF september or total increase OF
about one hundred and thirty million dollars. But
tnls is evidently not his plan. He very evidently
In ends to gull the public with false statements,
wear. when he hopes the Syndicate Will be ready
10 pay into the Treasury the government
gold the members are now spccnlatlng
with and enable nim TO retire Old bonds enough TO
baiancc the 500, 00O 0O0 new issues Then, and not
until Lnen, the mucli-talkedo $500, 600 new five
per cents Will appear regularly upon the monthly
WAITING FOR THE SYNDICATE.
Until the Syndicate gets ready to settle M The
public may expect the Secretary Of the Treasury 10
20 ON iii his monthly announcements as n there
lad been no heavy issue since his last. Until the
Syndicate is really we are TO lave the usual sefe0'
Iyped Official announcements that through score
iary Boutwell's magnificent financial policy the
pubic dcbt is being heavily reduced from month 10
month. The country has had enough OF sucn fusome
falsehoods. let Secretary Boutwell, therefore take a
new departure and give us the truth, Just for once
let him show Just how much The public debt has
been increased by me ISSUE o. new nyc per cents.
ROutwell's Il next In order. Give Us truthful debf
statement, Mr.. Secretary.