, 1873-11-14
HOW TO SYNDICATE 4 BOND,

ALI the executive departments Of tho Govern
1aent should bo conservative in their Observance
OF tho lava It is their duty not only to eco that
others obey tho laws, but also 10 practice
obedience Themselves. Of the Treasury Depart
mont this Is most especially and inexorably truo;
for ita relations to the country, ita commercial,
manufacturing, and other complex aud multi
tudinoua business intoresta aro so constant,
close, aud delicate that tho loast manifeatatlou
Of lawlessnosa diatnrbs everything, more or leas
and tends to destroy ttat confidence without
which both public and private financial affairs
como to ruin. Il is tho duty OF tho Secretary OF
the Treasury to administor tho laws concerning
his Department ~ thoy arc written, but 1t is not
merely the disregard for. or ipfraotion Of, SUCH
LAWS that constitutes lawlossneas On his part. II
he exercises q power not granted to him, bis
action is lawleBs, though 1t may not bo tech
nical breach of any written law. such actions
may affect the country ~ injuriously and
woaken confidence as surely as though positive
laws had boon violated. The assumption Of
powers not granted may bo oven moro mis-
ohievous than failures to discharge prescribed
duties. When both are combined, 1t 10 tin1o for
somebody to speak out.
OF the Syndicate we have written much, bnt
tho story has not boon half told. 4 more pro-
lifc source OF lnwless action has never found
lodgmont in tho Treasury Department. New
features aud phasos appear at intervals more
novel than any Of its preceding stages. One Of
rocont occurrence shows how curiuusly tho thing
works and how slgAtly hoscoretary Of tho Trcaa-
ury feels tho curb Of Law since the creation Of
the Syndicate A National Bank, located In ono OF
tho Western statos, WAS informed By tho De"
partment that $4,000 Of tho bonds deposited by
it with tho Treasurer OF the United States to So
ouro ts circulation wero embraced in tho call Of
Sept. 8, 1879, aud that after that date interest
| would censo thereon. Accompanying this nfor-
nation was circular signed by the Secretary Of
the Troasury, containing instructions to guido
holders Of called bonda aud among which WAS
tho following: "United States securities. for
wardod for redemption, nhould be addressed to
tho Loan Division, soorotary's oflce.' and oil
/ regiaterod bonds should DO assigned to the 6eo'
/
Ing to replace tho callod bonds with other
6 per conts, but having heard report that this
might not bs allowed, tho bank addressed a let
tor Of inquiry TO tue Comptroller Of tho ourron-
oy, saying: "ebo.ooo Of the bonds d.
posted by this bank, us security for circulation,
having been called. interest to cease Sept 6,
4 the object Of thiH letter 10 to Inquire whothes
thoy can be replaced with other 6 per cent bonds
Of tue 0overnmont." The auswer to this inqui.
II WAS: "Dy order Of the soorotary Of tho
Treasury, mono but ,'pow 5s' nre rsceivod in
place Of tho called bonds." Thoroupen the
bank addressed another lottor to the Comp.
| troller, saying:
! Tho gecretnry having decided that none but} nov
81 will be received u exchange for per csns depos
lied ~ security for circulation, have th!s day for.
wsrded to him, aas1gnad, tho receipt of tho Treasurer
OF the United States for 900 bonds OF 1862 called
June g. 1873 and cakel him to exchange souo for nov
81 {rogatere to be placed with TroasuEor, and aeud
IN coln certificate for balance of insoseat.
| Also at tho same time sending lottor to the
/ Secretary as follows:
! nulpBe herein receipt Of the Treasurer OF the
United Htaes for 10000 Of United States registered
per cent bonds Of 1862 now deposit with him Bo
CURLY circulating noes asuel 10 this bank. Tlesa
bonds are included In your call OF Juno Q, 1879 and
hayc Assignel them to you for redemption In accord
ance With your circular Of tho 9Th june It Ia doarel
and requested that you place $4,000 Of new Is {reg
latosod> with The Treasurer OF the United gtatcs
CURLY for circulation, In leu Of tho aboYs described