Washington standard. [volume] (Olympia, Wash. Territory) 1860-1921, 1872-02-03

ENhU ID IN TIE UNITED STATES TREAS-
URY DEPARTMENT! - IMPEACHMENT
TALKED OF
[From the New York Herald
WASHINGTON, Dec. 18, 1S71.-Secre-
tary Boutwellis becoming seriously alarmed
at the strong indications of efforts for his
impeachment, and, in view of the proposed
report of the Ways and Means Committee,
giving full account Of his Syndicate op-
erations, is preparing to answer the de-
mands of the Committee in reference to
that matter.
1t is frankly admitted by high officials
at the Treasury Department, that iu order
to put the loan upon the market at home
or abroad the Secretary did step outside
of the law and violate the terms of the
acts Of Congress approved July IA, 1870,
and January 90, 1871, which expressly
forbid any Increase of our bonded debt or
the payment of more than one-half of one
per cent. commission to agents or the sale
Of bonds for less than their par value in
coin, in the following words:
But nothing in this act, or any other
law now in force shall be construed to au-
thorize any increase of the bonded debt of
the United States.
SECTION 2. Aud be it further enacted,
That the Secretary of the Treasury is here.
by authorized to sell and dispose of any of
the bonds issued under this act, at not less
than their par value for coin, and to apply
the proceeds thereof to the redemption Of
any Of the bonds of the United States out.
standing and known as fvc.twenty bonds
at their par value, or he may exchange
the same for such fve-twcnty bonds, par
for par; but the bonds hereby authorized
shall be used for no other purpose whatso-
ever. And sum not exceeding one-half
Of one per cent. of the bonds herein au-
thorizcd is hereby appropriated to pay the
expense Of preparing, issuing, advertising
aud disposing of the same"
MR.. BoUrwELL's VIOLATIONS OF LAW.
1t is absolutely necessary here to recap.
itulatc the most fragrant Of Mr.. Boutweli's
violations of law, though the people may
be familiar with some Of them, but not
with the essential particulars, which will
be found further on.
Two hundred million dollars of the now
bonds, little over onc.eighth of the
amount authorized by Congress, have been
put upon the market and disposed Of; but
at what cost? The answer is given in Mr.
Boutwclls own organ, in the following
words:
Mr.. Boutwcll's plan of funding the ma
tional debt has had pretty fair trial.
The sum and substance Of the Secrctary's
success is the funding of s2OO,OOO,O 900 at
five per cent. on the payment of bonus
Of one and half per cent. to the "Syndi.
cate" Of foreign bankers who have agreed
to take the loan. Add to the bonus (S3,,
600, ,000) Sl,00O,00O more for the asgre.
gate cost Of printing the new bonds, adver.
tising, explaining and commenting the
loan, and the entire cost of funding the
5000, ,000, 900 at FIVE per cent. is $4,000
600.
1t must be borne in mind that this ST..
900, 900 has been paid out by Mr.. Bout.
well, not for negotiating S20O,0O0,O0O of
bonds sold for coin, but mainly to pay fa-
voritcs for handling one set of bouds over
their counters and taking back another.
At this rate $50 900 900 will be expended
in converting the amount authorized BY
Congress. At this rate $50, 100000 will
be expended in explaining, advertising,
commencing" and paying "bonus" to ia.
vorites before the entire loan can be con.
verted for conversion is all there is of it..
OUR TREASURY CLERKS IN EUROPE.
The Committee of Ways and Means
will also enquire how aud by what author.
ity of law Secretary Boutwell, gave some
thirty-three Treasury clerks leave of ab.
sence that enabled them to make q lengthy
tour in Europe last summer and fall at
Government expense.
Many of these clerks hold responsible
positions in the department, the duties of
which during their absence in Europe were
performed by inexperienced and, in many
cases, incompetent subordinates. The
general looscness of department business,
as shown by the recent startling defalca.
tious, is the natural result.
The answer, that it was necessary to send
these thirty.three clerks to Europe to carry
bonds to the Syndicate, is no reply at ali.
The bonds, if stolen or lost, would have
been, in the hands Of unauthorized persons,
quito valuelcss-not worth the paper they
were printed upon-so that the responsi.
bility was really very small. A contract
could have readily been made with re-.
sponsible steamship or express company to
transport the bonds as safely and cheaply
as by tho plan adopted, and the services Of
the clerks thereby retained in the depart.
ment where needed.
The present decentralization and recent
defalcations in the Treasury Department
must be charged mainly to Mr.. Boutwell's
Syndicate account.
SECRETARY BOUTwELL's DEFENCE.
Mr.. Boutwelrs friends are compelled to
admit that in order to put small portion
OF the new loan upon the market abroad,
he went outside the limits Of the law and
violated the plain provisions of the act au-
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