The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-23
Examination Of the Secretary Of the Treasury
Before the Ways and Means Committee
OFFICIAL INTERPRETATION OF THE LAW
How the Interest on tho Old Bonds "a
Paid for Ninety Days After the
Taking Up of thu New.
REPORT OF THE COMMITTEE.
The Secretary Acquitted and Sus-
tanned in His Action.

WASHINGTON, Jan. o. 1872.
The following 10 full report OF Secretary Bout
Wells Examination by The Ways and Means Com
mitee. January II, 1872, concerning his transac-
lions with the Syndicate In the disposal OF the new
funded Joan.
Mr.. Boutwell, appeared at the request OF the COM
Uox's resolution Of inquiry, previously adopted in
the House.
Mr.. BOutwciPs Statement.
S % s 5
per cent In regard to the hrs increase CT the
say these The %Ssns larger 81
w Of Ss than that GSsandn.
: more confederation. that mode; but from my
ssSS: :s' We ss'5ss III %sys
ss g191 :; s' , wa. sSa sa Il
ssS ;sssS
ys Sss e.
cent SSns' =, Sy
he Sss
% t. me- One s,s AZ that s
@ es ~
W. 40. ssns world 0ss'ssS
ia zoo for any other purpose than 'a.sm the out
= NOT iSonE4sise TIE DIET
was declaraton IN aid OF the credit that We were not
bank: and money IN he treasury
o. Sp e 5 we 70 s
ance the indebtedness of the United States to speak,
Mr. AwEs-The strict construction Of the law would no.
an
Mr. BouTwELL-Certainy; but the evident intention Of
a. s.
% tie sq' ss
1' s ns tn: SINCE s'Af 's
r. @ could asys
have means the compulsory RESUMPTION Of the
S N e
whenever hen Wa they are presented
the OF tho
M BoUTwELL-The net obligations have not been in.
Mr sDo you understand th.. the that
ton Of az equal amount e old ones ~ ''.' '.s.
Ss 4. a s @ S The % q Ssn
new bonds shall DO pledged to the redemption Of the old
H. on ie: FOR
sS5 W. sold the sa F. AND
this day thai Identical money in Warrington
;SS rs @ ss1ss s'R
that identical $500 The redemption Of
you reserve in the Treasury an amour.
ne y IL s,1 %s In
the sale OF new bonds but Is not the same money aud
e coin Or notes e b reduced Oscw Tie
of n sns s
compliance with the lay requiring US to Pay u, Identical
bring the santa 10 Or Portland s5r he sale
20 70 f. or anf sn s
eSTs amount Sacx e. nvoynE an expense Of three
% as% soS w 70 buy e.
O-mO rrOW Wa hn,ld AL
500 new bonds the bonded debt would sl DO
parme6 10th August to he essSsrs
saas Ss T:
3 sss Tss q .S
;::S ]; 81:
.Ss5 bank. g. commits.
Mr. BoUTwELL-ws pay them one per cent all their
Mr. yoS DO not any other class of subscr
Of ons wnS
81
mr. X @ the cost Of negotiating the entire loan
mt: SogTwELtIi costs more than that We received in
they y Would Subscribe or IN Inc
until %p when s sn suas
the option Of taxing the remainder Of The SS0oo0o or
MAJ a5si enter
s 81 sSSns aaS o s have the
that the banks of tue country had already taken SsoOoo
GO % Epopc wanted tho people Of this cSunlTy
mater su. OF Justice TO haze The
which they had subscribed for, 5o0odoOo SGdon
thought was reasonable share In the opportunity take
Mr. MAYNARD-you are now speaking OF the new five per
Mr. BogTwrLL.I now speaking Of the Eve per cents
ns sale sss s e. 4 SsSs o.
mr. brT n you Sw the banks oneour Of one
Mr., BogrwElL,Ye,; onefourth at first and afterwards
W made o the So hanks :o our snd them
WAS allowed the list OF agents which have
sns II:
% for 81 CENT s %o o a %
s @ 9q Taai All . s %
t1 hs I've az S
Guiding the or one-eehih cent commission
oee required to make the one half Of
onc per cent which was authorized BY law for the
MI DAwrsso, then, the entire cost Of the s2OooOooo
% Ssi ssF Of se1s per cent
M Of on psr eea sSs % to that
sm'aS. who. :SSnd exceed Onsha
BoUTwnLLmInss question came up IN the very be.
roler who gave his opinion the limitation 10 ons
half OF cent did o apply strictly portions Of the
loan; tina. authorized the Treasury DEPARTMENT, in
cost OF engraving and advertising before we cold any bonds
at ALL Twas Just one of those instances where II you
construed the law In any other would be Impossible
execute and the view has therefore been taken the
intention OF the law the Aggregate expense
OF the loan TO one.half Of one per cent
Mr. NEUTRALITY-SUSPICIOUS., for INSTANCE, Mr. Dawes comes
forward and advances money and taxes
loan at par without commission or cost would when
came 10 negotiate the second 000U00 yourself
limited TO oneha Of cent that In the
expense you authorized 10 incur
MIR. BOUTWELL, should be very clear II had nepo
tated OF the loan cost OF less than onchaf one
per cent Tho dnerence OF commission or the actual cost
The remainder but should not feel that the Secretary OF The
treasury justified In advancing except what might be
absolutely necessary to get the machinery In motion
Mr. DAwEs-Tben you consider the entire author
ICED expended as appropriated advance that pur
Mr. BoUTwELL-we consider that o limitation OF the
amount that could be expended.
Mr. CoxDd Mr. Tayer decide that you could crpend the
whole y7OOO000 appropriated on portion of the ioan