The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1871-08-20

WASHINGTON, August II. 1871.
IL Is an i'll wind that blows nobody good Though
the hue and cry and all the fictitious dispatches
about the successful negotiation OF the new loan
are the most consummate humbugs Imaginable, they
serve to advertise those financial charlatans, Messrs.
Jay Cooke Il Co.
siited of extraneous matter all the noise about
the new loan amounts TO thlsjust this ana nothing
more:-
A few days ago after Assistant Secretary Rich
ardson's diversion In Europe was thought ABOUT
long enough, Mr.. jay Cooke visited this city and
had a very lengthy and very secret consultation
with Secretary Boutwell,. The result despatch,
on the 9th INST, from Assistant Secretary Richard
sou ~ announcing his brilliant success The
HERALD with It's usual good judgment, refused TO
credit it, but the ring organ In this city fairly ex-
hausted its job fonts Tor type to display the aston.
ishing "newsn as iollows:-
Tne New Ioan-Its Negotiation Completed
Triumph OF Secretary Boutweli's Financial Policy
Successful Termination OF Judge Echardsons
Efforts-General Advance In United States Secur'
ties.
In the same Issue with the above ''news'' up.
peared the following editorial:-
The telegraphic news from London brings tho
cheering intelligence that Mr.. Richardson has com.
peted the negotiation OF the new i've per cent loan
In That great commercial centre. The speedy nego
taiton OF this loan means the advancement OF
Of Increased prosperity Tor our people unuer tue
wise and popular administration OF President Grant
AS the Treaty or Washington was its great diplO-
matte success this loan Is the grand financial
triumph OF an adminstr3 ton which has Tor Its only
aim the good OF the people. and which VIII continue
IN the future. in the recent past, To maintain in.
tact the credit OF the nation, and guard with jealous
eye Its honor and reputation.
1t is now clearly seen that all the above quote
news from London Ia an out and out fraud. In
deed well understood here that the despatch IN
question was prepared In this city aud telegrapned
10 London and sent back here deceive the people.
Al all events The loan has not been negotiated.
Not fourth part of the five per cents have been
actually disposed or and the four and Onc-haf and
four per cents been touched. 81 $780, 600 900
was authorized by Congress, and put upon the mar
ket by Secretary Boutwell,. Only about $780, 900
have been actually dspO Of
THIRTEEN HUNDRED MIL LIONS
have been Withdrawn from the market, fifty millions
preserved" for the national banks and the balance
about seventy millions, are placed exclusively In
the control OF Messrs. Cooke Co.'s Syndicate" or
clique.
ing AIS negotiation completed" not One-dlteenth
part OF the loan mas actually heen placed The FOL
lowing Is "a FAIR exhibit OF It's present condition.
Bonds disposed or by Old agencieS...... 200
Bonds taken by Jay Cooke CO.'S syn
Bonds offered to the national banEs.... 50,O0d,0Oo
Bonds promised to be taken ny the syn
Bonds Withdrawn from the market. 1.3oO,OoO,OOO
Total amount authorized 81 500 900. OOG
Mr.. Boutwell's action in Withdrawing sl3oO,OOO,
900 from the market and preserving" S5J,0O0.0o0
tor the national oanks gives Mcssrs. Jay Cooke h
Co.'s 'syndicate' the exclusive control OF all the
bonds now IN the market except those IN private
hands. Just about how much tins monopoly Will be
worth remains 20 be seen.
FINE FISANCIERING,
BY acts approved July H. 1879, ana January 2Ols71
TO issue 81, SOL, 900 600 new bondss 0DO OOv five
| per. cents and sl,eoo,oCo.oo four and One-
| half and four per cents. A sum not exceed
ing s7,5oo,oo) was appropriated TO nay the
expense OF preparing. Issuing and advertising
for commissions agents, &C., was Expressly lin.
tied 10 $500, 900 there Is nothing TO prevent the
business Of conversion into the hands OF ravorite
| clique OF bankers and giving them much larry
amount by making their banks national deposto
RES and keeping large deposits therein, arrang.
Ing SO that the calcd-in bonds may Dear interest
three months or less after they pass into the hands
OF the agents and before they are turned over TO tho
government Tor Cancellation fhe fourth section Of
the act approved July L. 1870 seems to nave been
framed with view 10 some such job
In iact there Is almost no end TO speak. OF the
money that can ne made by manipulating this loan
II the Secretary puts The exclusive control OF the
business into the hands OF q CLIQUE, provided always
that II can be noated. There Is the rub suDscrUers
must be found, or there Is no money In 1t Tor the
operators
during the rebellion the government financial
agents found no trouble In turning the national
debt over tune ana again. each time making a fat
comm sson, anu vastly increasing the interest bur-
den OF the nation.
II did not require any grca: financial skin on the
part Of the government agents to exchange green
backs for certificates Of Indebtedness worm ninety
or ninety -hve cents ON the dollar, and bonds
bearing six per cent interest IN gold, equal some-
times TO sixteen per cent interest IN currency,
tnelr counter IN exchange. dollar for dollar, for
greenbacks That bore no interest
INCREASING THE NATIONAL DEBT
AT the time when the country was hooded with
greenDacks and other forms OF interest bearing
government indebtedness 1t was an easy matter 10
other loans All were glad to exchange tneir nom
Interest bearing paper dollar for dollar, for Interest,"
bearing securities, and the government agents were
Dnt too glad IL hand one over their counters take
back Tue ether. They made II fat commission on
each transaction to say nothing OF the profits de.
rived from early Information or contemplated
changes, the Use OF few odd millions OF unad-
Jistcd balances and other millions OF government
deposits.
Every change In the form OF tile pubic debt put
n,o,d millions INTO o lne pockets OF The gov.
creased the taxpayerJ burden.
MATTER OF DOUBT.
Each or the half dozen changes In the form OF
oar national debt made during the past ten years has
increased our burden OF taxation. Inc change now
being attempted proposes TO decrease tn, burien by
making the chlnyc. allowed by tn. fourth section OF
the Funding BIZ. Is likely To be lar greater shan the
cnLcd BY tue change, should 1t be finally made, Is
matter OF extreme doubt Tie benefit will he more
apparent than real IL Is possible that the new loan
can be placed, but IL VIII cost more than II TO.
THE tUNDING BILL
was put through Congress by ana III the interest OF
nldd!enen wio expected 10 manipulate the new
bonds. The profits OF the conversion were kept en-
tireIy out OF sight while the apparent saving OF
interest was Constantly paraded. The taxpayers
aud Dondnoldcrs were not once thought of. the
chance 10 manipulate the new bonds was tue great
object or The oi. II the reduction OF our tax bur-
den had been the real object very much more might
have been saved by stopping The annual gra,ulty
the national banks. ulizing the idle hundred mil
lions III the national Treasury and withdrawing gov
crnment deposits from favored banks, tnan by the
Funding oill twice over. Tie END Is not yet
POLITICAL FACTION FIGHTING IN JERSEY.