The sun. [volume] (New York [N.Y.]) 1833-1916, 1877-08-18

Tho disgraceful facts recently brought to
light in regard to the disposal of the United
States four per cent. loan only display the
inherent rottcnncss of the syndicate system.
In transactions involving the negotiation of
hundreds Of millions of dollars worth of
Government bonds, even the legitimate
profits are enormous, but when. by secret
arrangement. a favored few are granted "A
monopoly Of the business. their gains swell
to a magnitude which offers Inducements
for all kinds of jobhcry and corruption The
one-half of one per cent. provided for by the
funding act as the outside limit Of the cost
of issuing the new bonds comes to half
million Of dollars on every hundred mil
lions of dollars of bonds, and on the thou
sand millions Of four per cents it amounts
to the magnificent sum OF five millions
Add to this the premium which has
been realized heretofore ON every such ISSUE
and it will be- seen that the temptation
10 secure an Illicit share in the booty is
overwhelming. JONI SHERMAN may not
have succunbcd to il but when it is con-
sidered that by his connivance MoKToN,
BLISS a. Co. secured the negotiation OF
sl65,0O 900 Of bonds for their exclusive bcnc-
tit, instead of having to divide with half Il
dozen associates, it is difficult to resist the
conviction that he did. If, by some fortu-
nate chance, the four per cent. loan should
prove successful, the profits Of MOTION,
Bliss a Co. on their Sl65, 600 600 would not
be less than $780, 600, and might he great
deal more. And if JONI SHERMAN divides
with them, share and share alike, he will
have n pretty sum to add to his already ac-
quired wealth.
Scandals such as these. and all the frauds
which are inevitably practsed whore great
sums If money are placed AZ the uurcstiict-
ed disposal of n single official. would be
avoided 10y adopting the simple plan of Of
ferng the new loan to the public and iinnu-
cal Institutions generally Throughout the
whole country, rs is done in England AMI
France when the Government has a desirable
security TO dispose of. OF course, where
extraordinary efforts are required. as they
are in the case Of loan OF doubtful value,
extraordinary measures must be resort
ed to. Russia had to employ the Ron rs
CHlLDs 10 negotiate her last issue of bonds
because her own people are poor, and She
has not the machinery which the ROTH5-
CHILDS can control for borrowing from the
people of other countries The present re-
aCtlunurs Government Of France, too, not
possessing the confidence Of the nation.
Ia tiird in securing popular subscriptions,
to- ncw loan, and has been obliged, like
Russia, to apply to tho RorHscHILD5 for
help. But no such ncccs -ity exists in orr
cas-" Our people have plenty of money to
invest, they have not lost faith in their
power to right their political wrongs with
out revolution and bloodShcd, and our Coy
ernmcut has III the national banks agencies
by which it can place i'll new bonds on sale
in every corner Of the land. There was no
more need Of calling upon syndicate than
there was Of handing over 10 a select COM
hinu'nn Of capitalists, thc Custom House
and tine Internal Revenue department.
Nciiu-l That Congress will give its atten-
tlon t. THIS subject - that ii the mischief
already don" cannot be- rcmcdiod. its rcpctl-
ton NAY Doe prevented in the future. At
present II looks ~ il without further logi-h-
tion I'll" rebuilding Of the national debt will
stop Whcro it il, aud in providing for it,
prosro-a under better conditions thc4c SIN.
dleate juhe should Ice prohibited.