The New York herald., 1871-12-19

Secretary Boutwell, Is becoming seriously alarmed
at the strong indications OF efforts for his impeach-
ment, and, in view OF the proposed report OF the
Ways and Means Committee giving full account
OF his Syndicate operations, is preparing to answer
the demands OF the committee In reference to the
matter.
1t is frankly admitted by high ofcias at the Trea-
sury Department that In order to put tho loan upon
tho market at homo or abroad, the Secretary did
step outside OF the law and violate the terms Of the
acts OF Congress approved July a. 1870, and Janu.
ary 20 1871, which expressly forbid any increase OF
our bonded debt or the payment OF more than one
nalf OF one per cent commission to agents or the
sale OF bonds for less than their par value IN coin,
In the following words:-
But nothing in this act. or in any other law now
IN lorce. shall be construed TO authorize any in
crease whatever or The bonded debt OF the United
Ssaios.
SECTION 2.-Ana be it further enacted, That the
secretary oi the Treasury is hereby authorized TO
sel and dispose OF any OF the Dond5 issued under
TINS act at not less than their par value for CON-
OF any OF The bonds OF the United States outstand
ing. and known as 1vetwenty bonds, at their par
twenty boads, par Tor par; but the bonds hereby
authorized snail be used for no other purpose what
per cent OF the bonds herein authorized Is hereby
appropriated 10 pay the expense OF preparing, issu
ing, advertising anu disposng OF the same
Mr. BoUTwELL's VIOLATIONS OF LAW.
most 1agrani OF Mr. Boutwell's violations or law,
though tho HERALD readers must be familiar win
the larger portion OF them, but not with
tiai particulars, winch Will be found further on
Two hundred million dollars OF the new bonds, Q
utte over one-eighth OF the amount authorized by
Congress- have been put upon the market and dis.
posed Of but at what costs The answer Is given In
Mr.. Boutweils own organ In the following Words
Mr. Boutwelrs plan OF funding the national debt
q
OF the Secretarys success Is the funding OF
ooOoe 600 at five per ccnt on the pay ment OF a
pohus OF one aud hall per cent to the ''Synui-
cate' OF ioreign bankers who have agreed to take
the loan. AID to the bonus .9oo 0ool 81 100000
more l0r the aggregate cost OF printing the Eew
bonds, advertising, explaining and commencing
the loan, and the entire cost OF iunulng the
500, 90 ooO ut Ave per cent Is $i,o0o0oa
II must he borne In mind that this 81 O0o, 900 has
been paid out By Air. boutwell,, not for negotiating
$780, COO. 900 OF bonds sold FOR con but mainly to
par favontcs for handing one set OF bonds their
counters and taking back another. At this rate
$8o,O0o.oo0 will be expended in converting tho
amount authorized by Congress. AT this rate
$30.0Oo. .0oo Will be expended in explaining, adver-
iavortes before The entire loan can be converted:
Tor Conversion Is all there is OF It.
TIE FIRST VOCATION.
Congress appropriated u sum not to exceed one
million dollars y pay the entire expense OF con-
market last spring. It is admitted that MIR. Bout
well has expended full four times the maximum al
lowed by law. Herein has he violated Dotn the let.
ter aad spirit OF the law. Congress expressly pro.
vidcd that half the amount saved by reduction OF
interest tue lrst year should cover the cost OF
version. IL ls admitted that Mr.. Boutwell, has cx.
pended more than he can save In TWO years.
Congress expressly provided that the expenses Of
the conversion should not increase The taxpayers
burden single cent The burden imposed by Mr..
Boatwels syndicase operations is just two million
dollars greater tnan 1t would have been II he had
let the business entirely alone
THE SECOND VIOLATION.
Tue law oil Congress expressly forbidS any increase
whatever OF the bonded debt OF tne nation
IL 10 notorious that Secretary Boutwell, issued
oyool the nve per cent bonds before mouths
Under the head OF .Debt bearing interest In CONT
Ia the last monthly DEBT statement the secretary
gives S62. 1856. 400 as the total amount OF new five
per cents OUTSTANDING when It is notorious that full
s2ooooCoSo have been bearing interest for months.
THIRD VIOLATION.
Congress has provided oy law that the new nve
per cents shan not be disposed OF for less than their
1t IL notorious that the Syndicate. by hook ana
crook. actually Obtained the bonds from Secre-
tary Boutwon ior much less than their par value In
c0ln.
FOURTH VIOLATION "A RING JoB
The secretary Oh the Treasury IS authorized only
10 exchange the new bonds jor ola bonds or sell
them i0r coin. is notorious that Mr.. Boutwell, has
taken millions upon millions OF dollars OF national
bank certificates VI deposit In exchange for new
bonds.
on the ;1th OF September last the Treasury Depart
ment held $40 ,oass 100 OF these national BANK cer1-
Gates oil deposit, received In exchange for tho new
bonds. Twents-six milhons four hundred and
eghty-fou~ thousand and iour hundred dollars Of
these certificates OF deposits OF coin were issued by
cue flrst National Bank Of washington, OF which
i do not md any one who even prctends there
were $26 100000 OF coin In the First National bank
Of Washington AZ any time during the month OF
September. That institution, nevertheless, found
amount Of IT'S certificates OF deposit bearing In
tercst In exchange for United states bonds bearing
il was Understood At the Treasury Department
that Secretary boutwell, would hold the certificates
three months; and at the end OF mat time, u the
ing III old bonds or paying coin, an extension would
not be refused. The transaction was both safe and
But the worst feature Of this transaction Is its
quies the new bonds 70 DO exchanged Tor the OLD
or sold NJ not less than their par vaue
IN COIN.
Certain It IA that national bank certificates are not
Coin Ia the meaning OF the law. il Congress had
ne new ys %s per ceets or Daona nsnk
OI deposit provision TO that eject would have been
inserted IN the law for funding the naIional debt
OUR TREASURY CLERKS IN EUROPE.
Tho Committee OF Ways ann Means will also In
gure how and by what authority OF law Secretary
Bout wei gave some thirty-inree Treasury clerks
leave OF absence that enabled them 10 make
lengthy tour IN Europe last summer and iall at gov
Many OF these clerks hold responsible positions in
the department, the duties OF which during tnelr
ana, In some cases incompetent suDor dnates. Tie
general iooscness OF department business as SHOWN
by the recens startling delalcations 10 tue natural
The answer. that II was necessary TO send those
thirty three ciei Ks 10 Europe 10 Garry ponds to the
HyndlcaGe, reply at oil. The bonds, n stolen or
i0st would have been, IN the hands Of unauthorized
pcrs0ns. quite yalueless -not worth tine paper they
were printed upon-so that the responsibility was
really very smal. contract Gould nave readily
been made with responsible steamship or express
company 10 transport the Donds as safey and
cheapIy Is w the plan adopted, and the services OF
tbe olerks thereby retained Ia the department.
1he present generalization and recent defaIca-
eions IN the Treasury department must be charged
mainly 20 NJ. Boutweii's Syndicate account
sEoRETARy BoUTwELL's DEFENCE