New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1873-09-13
7BK SYNDICATE, THE TREASURY, AND
THE TREASURY GOLD.

7Bg SYNDICATE, THE TREASURY AND
THE TREASURY GOLD.
We propose to review briefly the POSITIONS
we have taken in regard to the Syndicate, the
Secretary of the Treasury, and the Public
Debt statements May we hope for little
more attention and a little less SANDER now
that the gold gamblers, some bankrupt, Others
gorged, no longer mOnopollze the puDnc ear
And may we trust that, if business men Will
insist on regarding the questions involved as
partisan, they will at least remember that they
are also of such nature as to affect interests
much wider and more vital than those OF any
partyf
I. In THE DAILY TRIBUNE of Dec. 30, 1872,
we showed that the arrangement between the
Treasury Department and the Syndicate for
the sale of the new Five per cent bonds was
in manifest violation of the law. The Syndi-
cate obtain their bonds on three months
credit, the Treasury Department simply re-
tanning possession of the bonds until they are
paid for as a safeguard against default. Sup
posing the Syndicate's subscription to be for
fifty million dollars of the new bonds, we find
the Public Debt for three months increased by
that amount, which is contrary to the law.
If the bonds subscribed for by the Syndicate
be regarded as not part of the Public Debt,
then the three months interest which is paid
on them is a commission OF one and one
fourth per cent, which is also contrary to the
law. Now whether it is, OF is not, advan-
tageous to reduce the interest on the Public
Debt in this manner is not the question.
There Is a law which covers the case, and so
long az it remains the law it should not be
violated.
III. The Syndicate subscribed for fifty mil
lion dollars of the new loan on the list of last
March, and agreed to pay for the bonds on
the 1st of June. In THE DAILY TRIBUNE of
July II, we showed from comparison of the
Public Debt statements, with the known
movements of specie, as indicated by the
averages of the New-York banks and the eI-
ports and imports Of coin and bullion at this
port, that the Syndicate did note carry out its
agreement with the Government. 1t has since
appeared that the settlement with the Syndicate,
which should have been completed on the list
of June, was not finished until the 3Oth of
July, and that in making that settlement the
Syndicate turned in more than eleven million
dollars in Six per cent bonds of the United
States, not called for redemption and reported
in the Debt statement of August 1st as still
drawing interest We have also stated and
asserted our ability to prove before any
competent tribunal that, under their written
contract with the Secretary of the Treasury
the Syndicate have no right to exchange any
bonds for the new Elves except those which
have been called for redemption, and which
have ceased to form part of the interest bear
ing debt. Thus we have second violation
of the law, superadded to the first, and also
a release of the Syndicate from the obligations
of their contract.
III. In THE DAILY TRIBUNE of July H. and
subsequently at various times, we have
charged that the Public Debt statements of
the coin in the Treasury did not give the
true amounts. Bonds which VIGOROUSLY were
paid off in gold checks at the Sub-Treasury
In this city in the early part of June, were
entered in the Debt statements of the follow
ing month as still unpaid, the effect of this
operation being to swell the coin balance
above the true amount by sum certainly
greater than ten million dollars. The Secre
tary of the Treasury was prompt to denounce
our charges as false and as manufactured
Z" out of whole cloth,n to assist set of Wall
Street spectators in putting up the price of
gold. The public was assured that the
Treasury actually held all the coin it claimed
to hold. We still assert that the books of the
Treasury are designedly kept in such man.
ner as to add at least ten millions of fictitious
coin to the real gold and silver in possession
of the Government. For example On the LIST
of June the coin balance was repOrted nj
seventy Five millions; on Thursday afternoon
at ninety millions Meanwhile over ten mil
lions in gold have been Withdrawn from the
Treasury and sent out Of the country, while
none of any consequence has been brought in.
Here are twenty-five million dollars in GOLD
which have come from somewhere in period
of one hundred days. The mines would
produce about ten millions, but how are we
to account for the other fifteenf The Treasury
is the storehouse of all the gold this side of
the Rocky Mountains, with the exception Of
some inconsiderable amounts necessary for
daily use. The customs duties are paid with |
coin certificates of deposit. The return of
Thursdays business shows $3.50 9Si o. received |
that day for duties, of which only twenty -four |
thousand dollars were in gold, or less than |
the twentieth part-hardly enough we should |
think for the odd change. The same proper |
ton OF gold certificates obtains in tho so-called