The New York herald., 1872-12-25
SINS OF THE SYNDICATE
Boutwell's Revelations Of the Amer
lean Loan Transactions.
WAYS AND MEANS OF RAISING MONEY
The Ways and Means Committee
Hearing Mr.. Jay Cooke
and MIR. Boutwell,
Uncle Sam in the European
Pawn Office.
How the United States Has to Pay
Eleven Per Cent for Money.
"0UR CREDIT The BEST IN THE WORLD"
A Faint Promise Of Future Vigilance on the
Part Of the Secretary's Aids.
The Arrangement with the Bank
of England.
Uncle Sam in the European
Pawn Office.
How the United States Has to Pay
Eleven Per Cent for Money.
"OUR CREDIT THE BEST IN THE WORLD"
A Faint Promise Of Future Vigilance on the
Part Of the Secretary's Aids.
The Arrangement with the Bank
of England.

of England.
WASHINGTON, Dec a. 1872
The latest phase Of the question Of government loans Is
expressed in the following statement Of Secretary Bout
we'll recently given before the Committee Of Ways and
Means-
In the Spring February, 1871 the Secretary Of the
Treasury appointed in this country and in Europe,
large number Of bankers agents for the negotiation Of
the bonds authorized by the act of lS0ve per cent
four and half and four cent bonds The national
banks also all included agents We offered, as
remember quarter of per cent commission for ne
gotiatng the bonds We advertised largely in this
try and considerably in Europe One house-Hope Co.,
In Amsterdam-that designated without any confer
ence with them but because we desired to have their
auence declined to offer the bonds, giving as reason
The amount OF bonds taken IN Europe under this offer
yy yS speas AK %
entire crtany ao not y think the whSs ,S;s sod in
Sp MGod
5 snIs T, & fsS9 es
mated agents II this country and IN EaIope seemed to
. VERY UNSATISFACTORY
were made after that date About that period Cooke
SsSss:
e sk % e @ IN c 5Sass bo
IL III sT.s l
p E. i's
spnea nss si Tra
original proposition 7resmept reached, the sun
ssSSs S wss at 'ssf snss s
s 5 Sni w the % hey % to SaesSTse nS @ S5
%Sa, o p .ss S a fGS Sa Sssa
II n the hi aos and y think sS there asdS
in this country. The agreement was that the banks
oaa ei al Of na we
to deliver think in London and in all the principal
e
change n s hey to notify Is st
September q any bonds they desired 70
aSewenty bonds should eaI and Mr. Cooke IL;
Snd %s sN %h fS 50 M Gy
The second item Of the subscripton was this we
Seen incurred IL the negotiation Of the Fst Of
sss nsss Se : Of e M e ae
expenses incurred including printing N 1 en- en-
pcnss Incurred aiserwsrds including delivery
j. gSh% hsa the ssn On es ss rsss
done The subscriptions were to be made through the
making
asSS Gs e he % S So s m s Issued
Of ddsp0 spr nest G s s San
UNITED STATES NOTES rop EXCHANGE.
To facilitate exchange these bonds generally FIVE
wen,ics though in some instances we may have taken
The aTrangemsnt having been made MT Cooke and
oi at ile e Learned aiteSSxarss si.ash
% oeRs as took on ns ster side failed to take
Mr. JAY CooKN-1he sum was aoout s5,ooooOo The
amounts however remaining was SO small that we de-
Mr. BourwEII@-We made a call the 1st OF September
s
the ps Gs a Tse
hree 70 eight Il millions each hey seneTay
q e @ on y oSs;
| side and another set was carried by
the PERSON IN Charge or THE SAFES.
s fns ae & es
bro2gh to The combinations sent BY mail, and
ss anss y te SsSs
on ,he way though. as understood, they were slowed
% s sSs5s
I hey desired upon ,Se delivery .xs%S bond;
n5 D % a the
reekoned; may sta,s however, that if we going
snogID WANT TO VARY the ARRANGEMENT
Mr.. MaysHsD~fIow did that correspond with the mar.
as matter OF fact il was found to just far rste"that
P as & s d n
MI. BourwELr-Exchangc IS rcckoncd at about sx.
T " The n Which S we and
wish take further precaution in any 'i other
Mr. MaYslRp-That understood to be the difference of
sterling value in C that sde m u.
The com tns was recevoa s xs@e e
ss;.sS y JAY Ssess i Ne BANK fassas of
5ss s msas ns
BY which ihsy were to receive these SspS.it A. arst
accept considered al ihs time the contract 70 in
a ss e sef
az he money had gone into the epsSay s q ne
'S
dd not s. TO be clearly Ns The
iom were bound make The
was s" na pP on this point the
collation. should wish that Sndersiandins De n ns d H.
abcatt Sas money S wa. @ snreiy ,1fy' was any risk
but still that point isin felt e disturbed about
one time After the bonds OF misccaneous character
sman should be made %S for Htwen,y %as fa,
Sesn c.1ss
ss Aoato a and ce and there
afs1n was the date Of the new i.,ue ;,
Mr. BourwrLn-The bonds were all dated the st Of Au.
Der They were dated q August because that was
hs ne s0% so
s 'as
convenience simply. '"
The CHARxAS-You received from them these bonds of
the United states, on which three months intcres i was
yet to rum '''
Mr. BoUrwRIL-No; we held these identical bonds as SC.
curity for the deposit subject to the right Of the sub.
scribers to deposit other United States bonds I'm OK.
change. Al the end OF three months we took
. . THE BONDS THAT CALLED.
and paid the value OF them, including the interest
The CHAIRMAN-Now, take n bond the interest on which
Is TO run until the ls OF December. They received the
for what9 80 -
Mr. BourwsLL-Thcy gave that to MS In this way we
declined i've per cent bonds and took vc.twcny bonds
These Dyetwenty bonds were held collateral for the