The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-08-28

ury has succeeded, or Will succeed, In us
posing OF the two hundred millions out of the
five hundred millions authorized Of the new
five per cent loan, the question naturally
arises What will he do with the rest? What
will he do with the balance of three hundred
millions offves the three hundred millions Of
ur-and-a-halfs and the seven hundred mil
lions Of fours ? Looking at the extraordinary
efforts that have been made to get these two
hundred millions of five per cents taken, and
the length Of time the Secretary has been
working to accomplish that, there Is poor
prospect OF succeeding with the thirteen hum
dred millions that remain. 1t is doubtful If
any considerable amount Of the balance OF
three hundred millions Of fives could be nego-
tiated. There appears to be no disposition to
touch the four-and-a-haf and four per cents.
Nor is il quite clear that the two hundred
Millions of which 80 much has been said,
have been actually sold, or exchanged at par
for outstanding fve-twcnty six per cents.
The reports are favorable, it is true, and from
them there is reason to hope this much of the
debt will be funded at the reduced rate of In
terest but the Treasury Department Is not
explicit enough on this subject. The people
want to know If the so-called Syndicates. or
agencies Of bankers here and abroad, have
subscribed and paid for the new loan, or II
they are only and merely agents Of the gov
eminent, depending upon their ability to dis
pose Of the loan to others. That is the ques-
ton. If they be bona fide purchasers--as, for
instance, when the Rotbschilds or any other
great house take the loan of European gov
ernment-.here can be no question as to the
success of the Treasury Department. In that
case we expect to see the amount credited on
the books Of the Treasury and statement Of
it published. On the other hand, should the
new loan, or large portion Of it, be placed
in the hands of these Syndicates as agents,
simply to dispose of it il they can, success is
not positively assured, and 1t is entirely
another transaction.
Is the success of the loan only hopeful on
accomplished factp 1t ia possible Jay Cooke
& Co. and McCulloch & Co., and those
acting with them, may have been carefully
preparing the way, under the private sanction
Of Secretary Boutwell,, for placing the loan,
and that long before the new financial de-
parture was announced, and that they are
able to speak confidently of the result; but we
want to know the facts and the whole history
Of the transaction. Then, on what conditions
has the loan been purchased by them or
placed in their hands for negotiation? II
purchasers, are they allowed o percentage?
and would that be In accordance with the
funding law3 If only agents, what per-
centage are they to getf Ii is necessary that
the public should know what the cost will be,
how much the Syndicates are to get, and what
There is suspicion that the Secretary of the
Treasury is making great job out of this loan
for the benefit Of the Syndicates and national
banks. We learn from our Washington cor
respOndence that tho banks are receiving, or
are to receive, the new five per cent securities
of course, will enable them to draw interest
on both the new and old bonds for the time
being How long they will b, permitted to
do this we do not know. We want, as was
said before, explicit information on all these
matters as well as to the cost in percentage
of commission, advertising, printing aud
everything else, 80 that the public may know
what is to be gained or lost 10 the manpula-
ton Of tho Io,u.
Here II Is in order to inquire if the whole
II oht nanpnt ba ooryne0ant!y d;.u,so1 % ~,
arranged so as to prevent the manipulation of
it every two or three years by bankers and
agents who make stupendous fortunes every
time they handle it. We have never seen and
cannot see now why the Treasury Department
should not do all the business pertaining to
the debt as well as Jay Cooke, McCulloch, the
Syndicatcs, or any other agent. The truth
Is, the whole OF our system of national finances
is too complicated and anomalous, and Is
under The management Of those who know
little Of the subject. Though two hundred
millions of the Eve per cents may be disposed
of there is still thirteen hundred millions of
the six per cent Gve-twenties for refnnding at
a lower rate Of interest, besides hundred
millions more Of six per cents, and the four
hundred md fourteen millions Of the nOn-in-
terest-bearing debt in the form of United
States currency notes, which have to be pro-
vided for Considering that the funding bill
and Mr.. Boutwel's scheme for re-arrauging
the deb! have failed, with the exception of
that small part Of 1t, the two hund, ed millions
of five per cents said to have been disposed Of
1 la. uuestjon n,isrs What shall now ho dona
with the debit
Perhaps the consolidation Of the whole
into intermineble securities, bearing three
sxty-fye per cent interest, which Is
cent day on a hundred dollars, would
be the best plan. The debt would be
in this way, would cost much less
in the management oft, wonld facilitate trans
actiols in the market and at the banks, and
ba IL