New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-10-28
MR. BOUTWELL on FINANCE.

Boutwell's very moderate ability as financler.
His warmest adulatoTs praise his integrity and
his good intentions rather than his achieve
ments. Hence. w1en he undertakes to COM
mend his own wOrk-as he did on Saturday
evening at Jersey City-his natural recourse Is
to showing that it is good by comparison
better than some one else would have done,
as he sees fit to represent the views of some
one else.
Mr.. Boutwell, has been three years and nearly
eight months at the head of the Treasury,
with President on one side and Congress
on the other who have let him do with the
Finances nearly as he would. He inherited a
large surplus in the Treasury and an income
exceeding his necessary outgoes by more than
One Hundred Millions per annum. Ihefe
were over One Thousand Millions OF Govern
| ment bonds Give wenties) drawing SIX per
cent. interest which he was at liberty TO pay
off either at the beginning or during the
course of his term. 1t was universally ana
confidently expected that these bonds would
be funded at a lower rate nearly as fast as
the option to redeem them matured Great
Britain could borrow to-day at less than
four per cent, though her debt Is
larger than ours and she is not materially re-
ducing it, rs we are reducing ous, at the rate
of $1O0,OO0000 per annum. Could these Five
Twenties be funded in a thirty years four per
cent. at par, the saving to the people would
be Twenty Millions per annum.
Mr.. Boutwell,, up to this hour, has funded
exactly Two Hundred Millions at five per cent,
and he paid bonus of Three Millions, beside
expenses. to effect this. Congress had for
hidden his paying any bonus at all; nut ne
did not mind that. Here, with ample authority
to fund every Five-Twenty as the option ma
tured, he halts, evincing inability to go
further at present
A financier who is steadily reducing his debt
enjoys immense advantages over one who is
obliged to incur new debt. The fact that every
bond he issues redeems and cancels one of like
amOunt-tbat for every dollar he takes out OF
the market be Immediately puts one back
makes him master of the situation. Those who
lend to Governments 1--WE do not mean the
iobbers of loans but those with whom the
bonds ultimately rest) much prefer a perfectly
safe security at four per cent. to one of doubt
full solvency at eight. A fnancier able to re-
dnce his debt at the rate of S1OO,0OOOOO per
annum ought to be able to borrow, for pur-
poses of conversion merely, on the very best
terms. Great Britain, under like circumstances,
would sell long four per cents. at premium;
Mr. Boutwell, places Elves at net cost of two
per cent.
And why
Partly because of a radical blunder in
tying to negotiate at the same time bonds
drawing ), At, and 4 per cent. interest
respectively. OF course, no one wants to
touch any of these but the Elves. Had
Mr.. Boutwell, proposed an American ConsOl,
having thirty years to run and drawing four
per cent interest, selling it at small dis
count: and had he, in putting this loan on
the market, pledged himself to borrow at no
higher rate, intrusting the management OF
this loan to that one house which would un-
dertake TO negotiate it for the lowest rate of
discount, he might have fOated it long since,
and saved Millions per annum to the people.
Mr.. Boutwell, has enjoyed great Opportu-
nity, and has not improved it. He has devoted
himself rather to the manipulation of the
Stock Market, which he regards as taking care
of the business interests of the country.
On this point, we hold that the money which
the Secretary boards, making Herewith an oc
casional swoop on the Stock board, might bet
ter be used in paying off so much interest
bearing Debt-that Fifty Millions thus used
three years ago would have dOno far more
good in circulation than lying dead in the
Treasury, while the saving to the people lin
che premium on gold as computed in bonds and
in INTEREST," would have amounted to Twelve
or Fifteen Millions.
"But the Gold would have gone to Europe"
Very well then the bonds would have stayed
at home or returned. Can we afford to keep
Fifty Millions of Gold idle in the Treasury,
balanced by Fifty Millions of bonds held in
Europe, and drawing from us Three Millions
of interest per annum
Practically, Mr.. Boutwell, borows the money
AT public cost and uses il to benefit his friends.
If the Gold or Stock market is not working in
their favor, he puts prices where he wants
them by pouring Gold on the market and
buying bonds with the proceeds. Thus aided,
the Ring he favOIs have a dead sure thing.
Is this fair 7
Mr.. Boutwell, says:
The average OF coin In Treasury is nnety-three
millions Suppose va sell this coin. in compliance with
Mr. Greoleys demand. Would any man believe that we
have any intention 10 redeem cur paper when, by
dsposng OF this gold pledge pus 1t out OF our power
20 redeem our rotes9 Besides, gold would immedi-
atey fan in price, and being tho cheapest article for
foreign exoOr IL would rapidly SIP through our ringers
and 10 abroad Moro than that, the holder OF green
backs would regard his paper as more valuable than
his neghbors national bank notes and would sell them
10 brokers, dereoati4s tho national bank paper and
locking up at once thfee hundred and 9fy millions OF
paper. What u the pIOa. IN Mr., Gree!oy's plan Of