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

Ouc per CeuC lutcTe5t Oh Jnc JULIUS CuuS
converted. They ignore tho fact that the
expense of the conversion is greater than
the amount saved during the next two
years, and that the immediate effect of the
transaction in question is to greatly increase
the burden of the Government.
WILL NOT HOLD WATER.
Whether Mr.. Boutwell's defence meets
favor with the Committee of Ways and
Means and with Congress in general re-.
mains to be seen. 1t is hardly probable
that the dangerous precedent of allowing a
Secretary Of the Treasury to set aside the
laws of Congress at pleasure will be estab-
lishcd. 1t might have been done during
the great rebellion, but it is too late now
There is no occasion for the exercise Of any
such power.
WILL sEC'Y BOUTWELL, BE IMPEACHED!
Four months ago Mr.. Boutwell, could
laugh at the idea Of impeachment as safely
and serenely as Mr.. Tweed might have
smiled at the suggestion Of an arrest upon
a charge of felony.
The people are now, however, getting
into the dangerous habit of smashing rings.
The Tammany Ring has been very nearly
broken. Its great prototype, the Treasury
Ring at Washington, must be the next to
meet the same fate.
Considerations of party expediency may
postpone Mr.. Boutwells impeachment un-
til he resigns or is dismissed by the Presi-
dent. 1t s not easy to see what else can
save him. The Herald's exposures of bis
Syndicate operations are having powerful
effect upon public opinion that politicians
are not slow to observe.
The Treasury Ring-the greatest, most
powerful and most dangerous Of all rings
will make terrible fight to save him,
for he has been a supple tool from the FIRST
But rings have had their day. The cry is
now, Down with the Treasury Ring"
THE FIRST VIOLATION.
Congress appropriated sum not to ex.
coed one million dollars to pay the entire
expense of converting the 100000, 900
five per cents put upon the market last
spring. 1t is admitted that Mr.. Boutwell,
has expended full four times the maximum
allowed by law. Herein has he violated
both the letter aud spirit Of the law. Con.
gress expressly provided that half the
amount saved by reduction Of interest tho
first year should cover tho cost Of conver.
sion. 1t is admitted that Mr. Boutwell,
has expended moro than he can save iu two
years.
Congress expressly provided that the
expenses Of the conversion should not in-
creas the taxpayers burden 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!
TIE SECOND VIOLATION.
The law Of Congress expressly forbids
any increase whatever Of the bonded debt
of the nation.
1t is notorious that Secretary Boutwell,
issued 5000, 600, 900 of the five per cent
bonds before, months before, calling in a
like amount Of six per cents. Under the
head of" debt bearing interest in coin" in
the last monthly debt statement the Secre.
tary gives SG2,796, 400 as the total amount
of new five per cents outstanding, when it
is notorious that full $500, ,OOO,OOO have
been bearing interest for months.
THIRD VIOLATION.
Congress has provided by law that the
new five per cents shall not be disposed of
for less than their coin par value
1t is notorious that the Syndicate, by
hook and crook, actually obtained the new
bonds from Secretary Boutwell, for much
less than their par value in coin.
FOURTH VIOLATION A RING JOB.
The Secretary Of the Treasury is sauthor-
lied only to exchange the new bonds for
old bonds or sell them for coin. 1t is noto.
rious that Mr.. Boutwell, has taken millions
upon millions of dollars of national bank
certificates of deposit in exchange for new
bonds.
On the 11th Of September last the
Treasury Department held $29, ,O9S, 400 of
these national bank certificates of deposit,
received in exchange for the new bonds.
Twenty-six millions four hundred and
eighty.four thousand and four hundred
dollars Of these certificates Of deposits Of
coin were issued by the First National
Bank Of Washington, of which Mr.. H. d.
Cooke, OF the hrm Of Jay Cooke Il Co., is
President.
l do not find any one who even prctends
there were S26, ,000, 900 of coin in the First
National Bank Of Washington at auy time
during the month Of September. That
fnstitution, nevertheless, found no trouble
in getting Secretary Boutwell, to take that
amount ofits certificates of deposit, bearing
no interest, in exchange for United States
bonds bearing five per cent interest.
1t was understood at the Treasury De-
partment 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. Tho transaction
was both safe and profitable for the bank
managers, but terribly severe on the tax.
payers.
Ruk kho r. - Al A.