The state rights democrat. [volume] (Albany, Linn County, Oregon) 1865-1900, 1872-01-19
MORE ENoRMUos FRAUDS.

frauds in the Treasury Department
have been discovered and that threats
of impeachment are freely made
against Secretary of Treasury Bout
well. It is manifest that Boutwell, is
at the head of q ring of robbers and
thieves who are practicing enormous
frauds upon the United States Treas
ury and stealing almost fabulous sums
from the public Golfers. This is the
most powerful, dangerous and corrupt
Ring OF the present corrupt and un-
principled Administration, and the
outrages under it call for = prompt
and efficient remedy. Following is
the N. Y. Hcraid's summary of Bout
wells gross criminal peculations and
frauds upon the Treasury:
THE FIRST VIOLATION.
Congress appropriated . sum not
to exceed one million dollars to pay
the entire expense of converting the
$500, ,000, 900 five per cents put upon
the market last spring. It is ad-
mitted that Mr. Boutwell, has expend.
ed full four times the maximum al-
lowed by law. Herein has he vio-
lated both the letter and spirit of the
law. Congress expressly provided
that half the amount saved by reduc-
ton of interest the first year should
cover the cost of conversion. 1t il
admitted that Mr.. Boutwell, has ex.
pended more than he can save in two
years.
Congress expressly provided that
the expenses of the conversion should
not increase the taxpayers burden a
single cent. The burden imposed by
Mr.. Boutwell's Syndicate operations
is just two million dollars greater
than it would have been if he had let
the business entirely alone
THE SECOND VIOLATION.
The law of Congress expressly for.
bids any increase whatever of the
bonded debt of the nation.
1t is notorious that Secretary Bout
we'll issued 32U0,0t0,060 of the Ave
per cent bonds before, months before
calling in like amount of six per cents
Under the head of ''Debt bearing in
terest in coin" in the last monthly
debt statement the Secretary gives
s62, 796, 400 as the total amount oi
new five per cent outstanding, when i,
is notorious that full 2UU,00O, ,00C
have been bearing interest for months
THIRD VIOLATION.
Congress has provided by law tina,
the new FIVE per cents shall not be
disposed of for less than their coin
par value.
It is notorious that the Syndicate
by hook and crook, actually obtained
the new bonds from Secretary Bont
well for much less than their par coir
value.
FOURTH VIOLATION RING JOB
The Secretary of the Treasury il
authorized only TO exchange the new
bonds for old bonds or sell them for
coin. 1t is notorious that Mr.. Bout
well has taken millions upon millions
of dollars of national bank certificates
of deposits in exchange tor new
bonds.
On the 18th of September last, the
T-------- II h-r--....~s.s Ibid eeo, ,"oe..
400 of these national bank certificate1
of deposit, received in exchange for
the new bonds. Twenty four thou
sand and four hundred dollars oil
these certificates of deposits of coin
were issued by the First National
Bank of Washington, of which Mr.. ii.
ID. Cooke, of the firm of Jay Cooke
IL Co., is President.
/ do not find any ono who even pre-
tends there were 5000, coo of coin
in the First National Bank of Wash.
ington at any time during the month
OF September. That institution,
nevertheless, found no trouble in get
ting Secretary Boutwell, to take that
amount of its certificates of deposit,
bearing no interest, in exchange for
United States bonds bearing five per
cent interest.
1t was understood at the Treasury
Department that Secretary Boutwell,
would hold the certificates three
months; and at the end of that time,
If the bank was not ready to take
them up either by turning in old
bonds or paying coin, an extension
would not be refused. The transac-
tion was both safe and profitable for
the bank managers, but terribly severe
on the taxpayers.
But the worst feature of this trans
action is its palpable violation of Con-
gress, which requires the new bonds
to be exchanged for the old or sold
at not less than their par value
IN COIN.
Certain it is that national bank GER
tificates are not coin in the meaning
of the law. If Congress had intended
that Secretary Boutwell, should ex-
change the new five per cents for ma
tional bank certificates OF deposit a
provision to that effect would have
been inserted in the law for funding
the national debt.
OUR TREASURY CLERKS IN EUROPE.
The Committee. of Ways and Means
will also inquire how and by what au-
tbority of law Secretary Boutwell,
gave some thirty-three Treasury
clerks leave of absence that enabled
them to make a lengthy tour in Eu-
rope last summer and fall at govern
ment expense.
Many of these clerks hold response
bic positions in the Department, the
duties of which during their absence
in Europe were performed by mex
perienced and, in some cases, incom-
petent subordinates. The general