The New York herald., 1872-12-31
TIE NEy SYNDICATE.
Secretary B0utwelps Present
Position.
WILL THE SYNDICATE BE RENEwED2
Senator Sherman 70 Have Mr. Cameron's Chair
manship Of the Foreign Relations Commit
tee to Make Room for Mr.. Boutwell, to
Head the Committee ON Finance.

TO THE EDITOR OF THE HERALD
III am very decidedly OF the opinion, though
do not wish to be quoted as saying 1t, that Mr..
Secretary Boutwell, has pretty sharply violated
the law In his operations with the Syndicate"
Thus said a disting gulshed chairman OF one Of the
most important House committees Of the present
Congress.
1t viii be remembered that an efYort was made
during the last session to legalze the Syndicate
job and that It utterly failed. resolution giving
It thin coat Of whitewash was, indeed, reported
from the Ways and Means Committee and
rushed through the House under the pre-
vious question gag rule but the Senate re-
fused to touch u. In short, the scheme was
barely tolerated. 1t was not in any sense legal
ICED or even endorsed. 1t was utterly repudiated
and condemned by the people and press, and
barely tolerated by the Secretary's political
friends In the lower House Of Congress. The Sen
ate has not thus far investigated It,
SECRETARY B0UTwELL's PRESENT POSITION.
In view Of these well known facts Mr. Boutwell's
present position becomes matter OF great public
interest Is he preparing to repeat the Syndicate
operatonf II the scheme was such great benefit
to the country as he pretends, why is the repe-
tition so long delayed What is the real cause OF
the delay why has the funding OF the new loan
by the Syndicate plan been suspended for one
whole year II the plan itself was honest and fair
all round
Fourteen months ago Secretary Boutwell, was
about the worst frightened man to be found in or
about the national capital. The HERALD had given
his Syndicate scheme thorough exposure; repub-
lican members OF Congress talked about impeach-
ment for violations OF law, though they knew party
rules would not permit such an act OF Justice. At
all events the Syndicate transactions were abruptly
terminated and the corps OF Treasury officials
stationed In London was recalled.
Though the Syndicate managers were perfectly
willing to keep up the profitable operation OF ex-
changing their certificates Of deposits OF gold in
banks where no such amounts Of coin existed for
interestbearing bonds, Mr.. Boutwell, was too badly
frightened to proiong the profitable pastime. 1t
was thought best to hold up until public opinion
could have time to cool or and until the Presiden-
tial election was over with. The ring managers
were temporarily shut out OF the national Treasury
and an attempt was made TO pacify an outraged
people. resolution giving the job a thin coat OF
whitewash was rushed through the lower House OF
Congress, but the Senate refused to sanction it IN
any way, either directly or indirectly; ana there
the matter now stands.
OBSTACLES TO RENEWAL
Though the Presidential election Ia over and past
and the House OF Representatives has given Mr.
Boutwell's Syndicate scheme thin coat Of white
its renewal Public opinion has not yet cooled down
20 she r proper point where such JOB would be
committees abound. But the principal obstacle Is
nothing more or less than the Massachusetts,
Senatorial election. Secretary Boutwell, is
. candidate for the Senate, and does
not dare to start another Syndicate job
friends expect to caucSs him into he nos,ion 81
chairman OF the Senate Finance Committee in
q %ss sSs22Ss9S 2Sx shS5IsI w e se
tions Committee, that Senator Cameron says he
does not care to keep For these and other reasons
30 PC fes the JOB Is
larizing' the old Syndicate, by sending oui MANU-
ways known to experienced and well paid lobby.
ists Here is one OF their items:-
Secretary Boutwell, in hs statement before the Ways
SSss nS g HSrope as s'snSs
Jay h II S 5
% Ssy ss RsGsfS IA s as ss
e sa hsy Sn sy sSs
have disposed Of the ye per cent bonds they so on
e @ esy ri os ss
ne wou n Sc Sea e bonds on e and in %
per cent bonds now than 10 wait
WHAT IT is FOR
The substance OF the above was given out at the
Treasury Department Immediately after Assistant
Secretary Richardson's return from Europe, nearly
gated With toeraSie degree OF regularity nearIy
every month since. Its object is 10 nuibug the
people Into the belief that the Syndicate fufdin9
job OF 1871 was fair and honest business transac.
tion, beneficial alike to the taxpayer and bond
holder though rather hard on the poor syndicate
brokers, who were compelled I'd perform the To-
bOrious and responsible task of hap..;np one set or
bonds over their counter and taxing back another
for the mere song Of s2siie three million dollars
The Leg and short Of the whole story is that Mr.
aSatweli's proposal TO renew the Syndicate looks
remarkably like job By the plan proposed il
will actually cost more to convert skies into the
new nves than we shall save In interest In four
years; besides II creates great financial crushing
quite regardless OF the business interests or the
country. 1t Is mistake to think OF engaging in
any great financial transac tiOns at this time when
~ nluci >""sness Is felt as to the future on the
ather t4e ~ Afttaf' ""n Rank OF England
~aHes nave UeeU Nr 1gUaI lI #H7 M = no
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