, 1872-10-25
GOVERNMENT FINANCIAL ABUSES.
Exposure of Secretary Boutwell,
Recent Operations.
Speech by the Hon. James Brooks, {
New York.


Speeiuz Despatch to The Chicago Tribune.
/ NEW York, Oct. %, 1877.
One OF the most notable and impo1ta1
speeches OF the year is that by the Hon. jaime
Brooks, of this city, dei7ered in New Haven
| the 18th inst. It treats Of Government fnaz
| clal abuses, and contains q startling exposure
BoutTeu's recent operations, and their giganti
profits to his fayorites in Wall street. II
Brooks said:
son Oct. 4, greenbacks and gold having bee
made scarce in Wall street arti6cially, of courss
gold being high and stocks low, Governmer
was invoked to interfere on that d.,
Gentlemen distinguished for their operations
Wall street and in Washington we're in consults
tion with the Assistant Secretary OF the Treat
ury, the Secretary not being in Washington
but stumping in Indiana. What was done va
done by General Grants own interference Wit
the Treasury, upon the solicitation Of two Ne'
York bankers and brokers and the fact wa
kept secret from all others but their own clique
until the Monday following. The Governmen
operators in secret began to operate aud to pro
TT On their secret late On Friday after
noon, and they had from Oct
to Oct 7 secretly to operat
in, not only in New York, but in Boston, Phila
delphia, Baltimore, Chicago, and elsewhere. Or
Saturday, other Wall street operators began tt
see, from the operations Of the pets and favor
ties OF the Government, that something was il
the wind, and some followed suit and proftet
thereby, But the secret WAS not publicly knoW1
to the whole street; or to the country, TIL Oct
given out his usual notice, in advance
Of how much gold he would sell in Octo.
ber, and how many bonds he wouie
buy. On Monday, Get. 7, it was officially an.
$4,000, 900 in gold and buy s5,o0o,o00 in bonds
in addition to the official notice heretofore
given. The effect WAS electrical in Wall Street
and not only there, but among moneyed men al
over the country; with the additional hint that
Of greenbacks would be feissued to inilate the
currency. Now, am not going to indulge il
any figures Of speech On the table hold IN my
hand, and that I am about to submit
to ~, yo9 n, but to sh in figures Of - tset t
secret was worth millions to somebody, and the
possessors Of it, have no doubt, made mil
lion at least-not all, it may be, for themselves,
for an election took place in Pennsylvania, cn
ments in stocks from Oct. to Oct. 18, and the
profits OF the two weeks speculation to some
body, the chief profits Of which we're doubtlesst to
those who had the great secret Of Friday
A1r: Brooks here exhibited an accurate table,
showing that the aggregate advance Of active
*AAAANAA~@AA
exceeded 81, 100000. MIR. Brooks proceeded:
s:When the Treasury Department mat1e this
sudden and remarkable deviation from it's regl-
lar monthly programme for October, announced
only few days previous, money on call, with
pledge Of stock securities, WIS worth
as high as X Of per cent per
diem, Or, in palmer terms, 91k Per cent
per annum; while prime mercantile paper wss
discounted in open market at 12 to Is per cent
per annun. After the outflow Of gold and
greenbacks from the Treasury on account of this
large operation, money On call in Wan street de-
cined from 911l per cent per annum to and
per cent, with exceptions IS low es and 2
per cent, while mercantile paper de-
:lined only from u and Is per clnt
10 and u per cent. Thus it will be- seen tLat
he speculators were enabled to obtain money at
) decline Of about IS per cent per annun1, while
merchants could get it only threeper cent cheqr-
,r. This shows the complete farce Of calling
he Treasury gold sale and bond purchase
Sold on Friday, October !,
vas 114A@115, when the Treasury clique COM
nenced to sell, and on Friday and Saturday
many millions we're sold on short contracts at d
srge profit. Foreign exchange has advanced ?
'er' cent in gold, which operates against tic
merchants, who have to make remittances at
hiH seasonh