The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-08
MIR. Boutwelps Treasury Operatives and
the Syndicate Sob.

can be covered up SO well as In the Treasury
Few people know much about financial mat
tiers on such scale as those pertaining 10 the
government. To most the subject of tn.
national finances Is as great o mystery q,
the Sibylline oracles could be. Not many,
consequently, pay much attention to Il. Then,
Treasury figures are capable Of being 30 ar.
ranged as to deceive the public. Mr.. Bout
well, for example, has had his financial opera
lions laid before the country in most datterins
exhibits, apparently, and his friends and par.
tisans have sung praises to him for the ability
they think he has shown, yet there never was
in this country, probably, a more incompetent
Secretary Of the Treasury.
Our Washington correspondence, published
to-day in another part of the paper. shows
that Mr.. Boutwell, has been inconsistent and
has no determined financial policy, except,
indeed, that he has been consistent
since he entered the Treasury In keep
Ing up burdensome and unnecessary taxation
and making jobs for rings Of friends and
spectators. Just before he became Secretary,
and while member of the House Of Repre-
sentatives, he introduced bill which provided
that no percentage, deduction, commission or
compensation Of any amount or kind should
be allowed to any person for the sale. nsgotia-
ton, or exchange of any bonds or securities of
the United States, or Of any coin or bullion
disposed of at the Treasury Department or
elsewhere on account Of the United States.
By the same bill all acts authorizing or per-
hitting, by construction or otherwise, the
Secretary of the Treasury to appoint
any agent, other than some proper
officer Of his department, to make such
sale or negotiation Of bonds and securities
were to be repealed. 1t provided also that
all exchanges, purchases or sales of bonds
should be made by inviting competition
through advertising for proposals, and then
the awards to be given to be best bidders. It
was to be the same with the sales of gold. No
agents were to be employed, all was to be
done through the proper officers Of the
Treasury Department. and there was to be the
most free competition and publicity. The bill
did not pass, and Mr.. Boutwell, has done
much, no doubt; to prevent such a measure
being passed since he has been Secretary.
His policy as Secretary Of the Treasury Is not
the same as when he was In the House of
Representatives. The very jobs he appeared
intent on preventing while member of the
House he has since favored.
In the syndicate job, which gives to agents
unconnected with the Treasury-to few ia
vored bankers and speculators-near two mil
lions of dollars for negotiating o hundred and
thirty millions of the new loan. If the whole
of the fifteen hundred millions authorized by
the funding act of Congress to be funded
should be negotiated at the same rate of cost
the loss to the Treasury and country would be
about twenty three millions What new light
had flashed upon the mind of Mr.. Boutwell,
since 1869 when he was 80 intent on having
no outside agencies to negotiate govern
ment securities, and no commissions al
lowed for doing SOP To say the least
the whole syndicate transaction looks
suspicious. The profits allowed TO the agents
for placing the hundred and thirty millions
of the loan, as the negotiation of the new five
per cents, or barter Of securities has been
called, are without parallel In the financial
operations of this country, or, perhaps, of any
great country In these times. Mr.. Boutwell,
has acted in this matter contrary to the spirit
and intention Of the funding act of Congress,
II not in direct violation of law. One-half of
one per cent, or six hundred and fifty thou
sand dollars, was the total amount allowed
and not to be exceeded for all expenses In the
sale or conversion of hundred and thirty
millions of securities. This is explicit and
there is no way of evading the law directly,
yet the Secretary evades 1t indirectly. He
gives the Syndicate the interest on the bonds
for certain time, which is tantamount to pay
ing commission Of about two millions of
dollars. No amount of special pleading can
overcome this plain and damaging fact.
In his gold sales as we'll as in his bond pur-
chases and operations Mr. Boutwell, has over
stepped the duty OF his position. He has
entered the market as the bulls and bears of
Wall street do, to affect prices aud thus to
beneft those who are in the Treasury Ring or
in the secret of Treasury operations. He
goes beyond the limit of his duty when he
interferes with the market. Such conduct is
an injury to the solid business men of the
country and the public, and is only beneficial
to the stock aud gold gamblers and the Treas
ury Ring. See the list Of commercial firms
aud names we publish in our Washington cor
respondence Of those who pettioned for a
cessation of those ball aud bear operations of
the Treasury Department. Mr.. Boutwell,
should have all sales or purchases in the gold
and stock market public, at fixed periods, and
after timely notice has been given. There
would be no favoritism In this, and it would
tend more than any other course to prevent
gold gambling and to keep the market steady,
all OF which would prove advantageous to