The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-01-15


Should DO.
The important announcement made in The
HERALD In reference to the proposed Syndi-
| cate with the house of Rothschild and an
American house has made profound impress
sian in financial circles. The story of this
new Syndicate was, as our readers will remem-
Der, that proposition had been made to our
government by these houses to fund six hun
dred millions of the old six per cent loan In
the new five and four and half per cents.
This story is now seen to have been untrue
| really mere advertising expedient on the part
of an ambitious American banking house. 1t
is to be regretted that such stories should be
sent to us over the cable, especially when
inquiry would demonstrate whether they are
true or false. In this special case the
HERALD's promptitude has destroyed the effect
of what was q mischievous and mercenary
assault upon the public confidence, and we
take the occasion to give the Secretary few
words of advice upon his future financial
policy.
Our complaint is that the Secretary has
always adopted a makeshift policy-dead,
sluggish, inert-never seeming to be inspired
by any appreciation of the true greatness of
the country nor giving it credit for recupera-
ton and growth, nor considering that the war,
in its general upheaval of laws, traditions and
customs, compelled new departure in finance.
Three Secretaries of the Treasury have had
rare opportunities for splendid service, and
the building Of q noble fame-Hamilton. Chase
and Boutwell,. Hamilton was called upon to
create our financial policy. So well did he do
1t that his laws and statutes are still followed
in the practice of the government his rules
control the service Of the Treasury, and ex-
perience generally shows that when any Of
our modern statesmen attempt to tinker his
scheme they give it up, feeling that there is
no room for change.
Thus we see what master mind could do
| in building up an exchequer, and how
thoroughly time has indicated Ham:ltons
claim to be considered the most intellectual
statesman of the Revolution. Chase was called
upon to apply the Treasury to the necessities
of sudden and extraordinary war, and
although he deserves honor for his courage
and his fertility of resource, we see no
evidence Of the higa-reaching genius of
Hamilton. The country suffers from the
effects of many of Mr.. Chase's expedients-
good, perhaps, in their time, but of no value
now, and singularly cherished by Mr. Bout
well. A Treasury managed upon these
theories would be like the preservation of the
old forts around Washington and Richmond
because they had been of service during the
war.
Mr.. Boutwell, had problem as great and as
novel as that Of Hamilton. An enormous debt
was upon us. Our currency was unsettled
and chaotic. Our credit was so low that
good bankers abroad preferred the secu-
rites of Egypt and Brazil. Gold had gone
ont of circulation. In one part Of the country
gold was in circulation; in another part depre-
ciated paper. We had our securities in an
odds and ends condition. 1t required sea-
sons schooling to understand the meaning of
our various loans, their conditions and value.
The money market was in the hands of any
group of desperate Wall street gamblers who
cared to make corner or combination. We
were paying war taxes il time of peace. Our
tariff was a curiosity of ignorance and selfish
ness, and was generally changed once year
to suit the ambitions of men, the grievances
or hopes of certain States, or the exigencies of
political campaigns. Our internal revenue
taxes were oppressive and harsh in some re-
spects acting as premium upon bribery. They
inspired corruption and corruption reigned.
Every dollar that came into the Treasury was
tainted with fraud In one article alone Chat
Of whiskey) the government threw up its
hands and admitted that it could not collect
the tax. Corruption had measured weapons
with the administration and overmastered It.
This was grievous outlook TO the new Secre-
tary; but to man like Hamilton it would
have been a joy. Great minds yearn for
great duties. The country was plastic and
docile. Grant had melted all parties and
interests into one national patriotic public
sentiment Congress was largely in the
hands of the Presidents friends. Any reso-
lutte measure of the new Secretary would
have been received, gracio1sly at least, by
the two Houses. What they wanted was
action. They did not want the Treasury to be
managed as grocer manages business of
selling molasses, depending for his profit upon
what clings to the can.
And yet this homely figure will express
what Mr.. Boutwell, has done. We concede to him
honesty, BUSINESS capacity for details, indus
try, remarkable powers for silence and appli-
cation. Well, these are precisely the qualities
we expect from bookkeeper or clerk Like
courage In soldier, we assume these elements
ofcharacter and do not feel comforted in discov-
ering them. Mr.. Boutwell, has done nothing.
True, he paid so many millions of debt.