The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1872-02-02


Financial Rxpsrinenn.
The arraignment of the Treasury Depart
ment by Mr.. Cox, as reported In the HERALD
yesterday morning, cannot be overlooked by
the friends Of General Grants administration.
The arguments adduced by Mr. Cox to the
House are familiar to the readers of the
HERALD, as they have mainly appeared in
these columns. We do not agree with Mr..
Cox in making the Syndicate transaction 3
point of attack upon the administration.
That gentleman, to use legal phrase, belongs
to that section of the democratic party which
is trying to lille bill of discovery" upon
General Grant to find some cause for opposing
him. And as the majority Of Mr.. Cox's
friends have tired of the tavern scandals
about relations and presents, as being low
business and in all respects unworthy, this
Syndicate has been blessing to them. The
mistake of Mr. Cox is in this-his Syndicate
criticisms are partisan. The credit of the
country is as much the care of the democracy
as of the republicans.
What we see in the Syndicate is simply
financial expedient to make money. The
house which created 1t and accepted it's bene-
fits went into the speculation just as it went
into the Emma Mine transaction. The Emma
Mine was stock company, formed to dispose
of certain rich mining districts in Utah. We
presume the deposits in these mines were
rich. They were rioh enough to sell and net
to keep, however, which makes q material diff
ference when we take metaphysical or even
financial view of the case. The mine was
decorated with one or two members of Parlia-
ment, Senator Of the United States and the
American Ambassador, who called themselves
directors The firm who did its business was
the firm which controlled the Syndicate.
Both transactions were alike in character.
The Emma Mine was sold for money, and the
noted American names were written across
it's face to make it sell. The Syndicate bonds
were sold for commissions, and the great
government of the United States was merely
used to make the earning OF the commissions
an easy matter. Public opinion did condemn
the Emma Mine, so far as the name OF our
Minister was concerned. II Mr.. Cooke can
induce Englishmen to purchase mining stocks
he will do good business, especially as it is a
thing he could not very we'll tempt Americans
to do-and to his credit, we must say, has
never tried What public opinion did con-
denim was the bringing the names of Ambas-
sadors aid Senators and the Syndicate
bankers into one group, merely to hoat
mining stock into the English market The
similarity of these transactions did not end
with this odd grouping of famous names. The
mine and the Syndicate went upon the London
money market together. II there was any
credit in funding the national securities in
the eyes of the English capitalists that credit
was reelected upon the mining speculation.
And we have no doubt that, however well the
Syndicate paid, the mine paid a great deal
better. There was no legal restriction as to
commissions.
We dwell upon this circumstance, which
| does not seem to have occurred to Mr.. Cox,
because it emphasizes the great danger in.
Cured by the Treasury when it commits its
finances to the control of company of inge-
NOUS and enterprisng brokers. We have no
word to say against Mr.. Cooke or his house.
So far as we know he is man Of courage,
enterprise and solvency. His business is to
sell bonds, and, if he chooses, mining stocks.
But with his good intentions and business
standing he was not inherently strong enough
to have carried the Syndicate. Nay, he adj
mitted as much, for his contract only COM
PEELED him to take ten millions, with the
option of taking the remainder. This option
was consummate in it's shrewdness. 1t put
the government at his mercy. Had there
had we any trouble with Spain, or had tho
credit of the country been affected by any Of
the twenty causes that might have tumbled
bonds ten per cent, be was perfectly safe. He
had merely to decline his option and the
Treasury would have been in the disastrous
position of having rendered its bonds for in
vestment and been refused. The adminstra-
ton would have had to carry all the odium.
We do net know what bargain was made with
the owners of the Emma Mine,. but if it was
marked with anything like the sagacity shown
in this Syndicate scheme it must have been
of great advantage.
AS Mr.. Cox says, the Syndicate is dead.
The Emma Mine negotiation was a misfOr-
tune to the administration. It virtually closed
the career of General Schenck. 1t threw 9
faint upon our whole diplomatic service. 1t
subjected the State Department to criti
cisms that must have cruelty wounded as SEN
sitive and honorable man as Hamilton Fish.
So with the Syndicate. 1t has blurred the
administration of General Grant. 1t showed
that Mr.. Boutwell, was capable of being outma
nnuvred by combination of shrewd brokers
1t showed that it was possible for one house
} to have monopoly Of national bonds anf
nd rlaco than ada hu aid,