New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1872-12-18
FINANCIAL PROBLEMS.
THE SYNDICATE Observation-Disclosures CREDIT
ABROAD.
Try TELEGRAPH TO THE TRIBUNKl

tBY TELEGRAPH TO THE rRIBUsEl
WASHINGTON, Dec 17.--Secretary Boutwell,
and Jay Cooke made interesting statements Deiore INC
Ways and Means Committee of the House TINS morning
in regard to the past operations OF the SynucaVo anu
the proposed formation OF ono. Secretary BOUT
well gave detailed statement of his operations In fund
ing the s9OoOoOoO OF per cent bonds last year. SUD
stantiay as has before been made public The slSoOo'
900 left after subscriptions bad ceased In August was
given to the Syndicate, they receiving the inter-
est on the new bonds and also on tho old from
Sept. to Dec. This arrangement, he thought was
both legal and necessary in order to give him power 70
Mace the loan IL was legal because ne had no right 10
stop the interest on the old bonds without giving w
days notice. necessary because experience hah SHOWN
that the could not be sold without IT, Inis Is
what actually happened. theoretically the new bonds
were sold Sept and the money placed on deposit IN the
national banks composing the Syndicate. Inc ne"
bonds themselves were held security for this money
interest accruing all the time until Dec when the syn
dictate paid into the Treasury old bonds instead OF
the gold which they supposed to hold ana got the
new ones with three months interest. Bout"eh saiu
that he had recently had offer from Jay Cooke Tor the
remaining $3OOOO00Oo Of per cent Donds on INC sao
terms and that unless Congress aud the committee
expressed disapprobaton, he thought that he might
accept the Offer He was severely crossquestioned by
different members of the Committee in regard to the de-
talls OF the transaction. but the Information WaS
OF little public interest except on one point
BE said that the credit Of the United States
10 better in Europe, to-day, than that OF
any European nation. English consols, ne ssaid,
could not be sold on the Continent. France sold her
per cent loan for g. and Germany and Russia sold theirs
below par United States cent loan sold at par
The reason why English Consols sold higher than Amer
can securities IN London was that all trust iunoS III
England were required by law TO be invested In them
thus creating very great homo demand. Jay Cooke
assured the Committee that the loan could not DO nego
eDgN1 nAO N n al anUE
placed had been.
SECRETARY boutwell, JUsTIFYNG CURRENCY
EXPANSION.
GENERAL PRESS DIsPATcHI
WASHINGTON, Dec. 1.-THE following letter
was forwarded the House OF Representatives to-day
TREASURY DEPARTMENT, WASHINGTON. D: c.,
Dec IT, 1877.
To u. Hon J,uEs O. BLAINE Speaker Of The house.
SIR; have the honor of acknowledging the receipt OF
the following resolution adopted by the House OF Repre-
sentatrves on the sd of December, instant;
a Th,. the Secretary the Treasury be and be 3 herewith
s 16nF en Ss sss q he fs:s
creased u; Of the eg.tende no a. va, oSns pCD D e "a.
ny other y S Sot. ls legal
;ss oH :si.ni R aS;. for as s gsR''s @ @
What portion q the retired Totss 81 Ss BEN u ,.nT
cancelled and what AMOUNT remains sncaneeed and iarns re-
seas mode Of ,;aiag such increased amount Of Legal
tender notes by whose Order and ior what purpose uc ISSUE "
United States In circulation was increased In octo
her Last upon the order of Assistant Secretary Richard
son then acting Secretary In the absence OF the Secre
tary OF the Treasury, in the OF about over
the amount outstanding when the act or teD 1865 De-
came law The object of the issue was the relief OF the
business Of the country then suffering from the large
from & for @ s smPSsee
existing the country seems TO me TO have warranted
for the issue found in acts Of Feb as 1882 chapter a
Of July IL 1902 chapter l1 and OF March aSS CHAD
Court Of the United States the Chief In giving
the opinion OF the Court IN the case OF Bank at super
provided for the issue OF these notes TO the
amount OF si5o,OOo,OOo. The act Of July II, 1852
added another si50O00U to the circulation reserving
however $50 900 for the redemption of temporary
loan TO be issued and used only when necessary for that
of $50 600 was authorized making the whole amount
authorized co., and contemplating permanent
sOOO0OO At the December term, 1862 Of the Supreme
Court the same view again expressed by the Chief
f fenno q t Te '" Wallace nc $50 This opinion
is in accordance with the uniform opinion
the Department as well since the Of the ih Of Febru
airy, 1865 previous thereto The cancellation and
ury Department has NO legal effect upon the power of
the Department 10 reissue notes In their stead as a
already referred to- In that act it provided that in
eu OF any Of said notes or any other United states
notes returned TO the Treasury ana eanselea or
states such authorized by this act Previous
to the 4h Of March, 1882 large sums OF United states
ngton as surplus fund In OF the $3.50 100000 re-
ported In circulation for the purpose OF meeting any sud
den demand upon the Treasury and that practice mas
ever since been continued. Notes are not printed
for any special ISSUE On the LIST Of March, 1862 there
were outstanding more than OF three Dnr cent
certificates payable In legaftender notes demand and
the surplus In the only means at she COM
mand OF the Government for meeting any call on account
of this liability From this surplus the issue OF October
last was made and all new notes put in circulation are
a. Il.