The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-04

liberty furnish you wih Of money
ssisnedD : j. HENRY SCHROEDER & CO.
hessrs TkRRELL CHAMBERLAIN and BLAZE 50 Basinghan
AS, sooner or later the Uniisd States government a
the OF the late Confederate
the states lately confederated sciu cali upon Aess
Eronger Co. 70 render them account, your committee
have not thought expedent TO seek for further
information which in due time will be developed Your
committee have ascertained from Messrs Schroeder Co
that the amount of the bonds of the per
| ton loan in circulation are:-Amount Of bonds issued
f3 900. 000 ditto exchanged for cotton certificates
d bonds a. nrssent in ne s
Your committee have thought It their duty ascera
precisely the legal status Of the bondhoders and there
fore they submitted case, drawn up with the utmost
impartiaty, 10 Mr. Fleming, @ c., who enjoys the repu
aton Of being Of the soundest international lawyers
m England
RIGHTS AND THE LIABILITY OF The UNITED
STATES FOR REBEL DEBTS.
! The following is the opinion Of Mr. Fleming, O. c. -
The more important questions involved in this OF
such magnitude and difficulty that my opinion upon them
has been to with much anxiety hesitation and
is given with great didence Upon the best consider
alton which give, II appears that the loan in
question valdy created although of course what
ever may be the strict rights Of the parties the
po,oer g the conquerirg party to disaloo and reject
think that the Confederate States may properly be
deemed TO have been de fdco independent State from
the time OF their secession they finally con-
| quered. They possessed within themselves and
the States and populations which submitted 10 their
overnment every attribute OF sovereign authority; and
the internal sovereignty Of State does not in any de-
depend upon its recognition by other States The
United States date their existence from the Declaration
Of Independence in 1776 and from the subsequent
treaty with Great Britain any other recognition by
| foreign Powers Wheaton on International Law chap.
ill., p J. sec. 81 The Confederate States cannot hum
bly, conceive, be likened part OF European king
dom IN rebellion against its sovereign All the original
States OF the Union had been separate distinct colonies
Of Great Britain owing no obedience and no obligations
gether, they did as distinct and independent States
The articles OF confederation, OF s expressly reserved
to each State its sovereignty, freedom and independence
and every power Jurisdiction and right, which not
by the constitution expressly delegated to the United
States in Congress assembled The powers Jurisdictions
and rights delegated to the Congress by the eighth
ton Of the first article OF the constitution Of 1857 and
yielded up by the States by the tenth section of
the article appear to quite consistent with the
maintenance OF the sovereignty, freedom and indepen
dence of each state and the tenth additional article
the constitution expressly provded''That the powers
prohibited by II to the States, reserved to the
States respectively or to the people, The several States
agreed and contracted that part OF their sovereign and
independent power should be exercised for them by
Congress, the members Of which should be chosen by
the several States and the inhabitants Of the several
States, and by President and other officers selected
and acting under the provisions embodied in the
constitution Of 1857; but they reserved to them
selves all their other sovereign rights and by
made the inhabitants and subjects Of each State subjects
blended the several States into common empire The
arrangement between the several States originally
bodied in the articles Of confederation Of 1878 subse
qncnty in the constitution Of 1884, appears have
been not the creation of sovereignty which the people
accepted as subjects but merely compact agreement
binding, no doubt upon the States which which
became parties it, far could be enforced against
them but not making the refusal Of State in obc
dience conformity with 1t an act OF rebellion NV
opinion, consequently, is that although the Confederate
States have been acting violation Of the provisions
constitution they &C ing as souein and nde-
pendent States curing obedience subjects any author
ty and that when they seeded from the Union they
broke through the compact agreement Of their prede
cessors, but Violated allegiance and that while unsub
ducd they maintained their sovereignty and necessary
incident 70 il their power 70 c1ntra loans and 10 pledge The
Security tyr Their yepaymw The body Which
contracted the cotton loan consisted OF special represent
atves from the several States which united In
federation having conceive full power bind the
States which they represented; and am further in
formed that tho State Legislatures of Of the Con-
federated states, by separate acts adopted confirmed
the loan although II made in the OF the Con-
federated States Every guarantee which could make the
Confederated States jointly and each hem respectively
liable for the repayment Of the loan appears have
been given, and unless their existence independent
States had been lost before the loan contracted it
appears that there ground on which orgi
nal validity be successfully called in question. Sc
cesson coIld not forfeit and do not understand that
the sovereignty of the several States Of the confederation
and think II must be deemed that those States con-
unued 70 hold their authority as sovereign States until
they We're finally subjugated. The illegal improper
usurpation Of the government q those Ststes as
would make difference. n the view which have
formed to the original validity Of the loan be
well founded then the United States have taken TIE pr
q cses s w va sS 4: &c @g1s ssss S ss .s
uds subject the charge for e Ian and ,chich has BY
conquest become the prsesy q ne Unsd States continue,
States mc % the liability ~hch previously attached 10 it,
The caseis different in fact b MT in principle in regard
troll of the conguerors With that Of the
full party DEAL and II it be their pleasure deny the
ya y q 'se 'Us aS S@ ass %s y
quered rpndd,ing its liability 10 creditrs under the loan,
can b. questioned in America But whatever may be the
actual power Of the conquerng States as the Confe
deratc States did in fact for considerable time maintain
their separate and independent existence and as during
that time they contracted the oan II the principle all
but universally acted upon in Europe be applied the
Ian ouglt 10 10 admitted The government of a state
which is de cfo Independent raising held u have
the power Of binding the state although the government
be revolutionary government and the greatest blame has
been attributed 10 the successive governments of spain
because that country rcpudatcd the loans raised by the
Cortcs whilst the government kept the King in reality
as prisoner and am informed that up to the present
day the merchants OF the principal kingdoms Of Europe
refuse to allow any public loan for Spain 10 be dealt with
on their public exchanges Thcslability OF borrowing
wheatons ssElements OF International Law p l. chap
H., sections and g. The Of Texas mentioned in
note to the last edition. bears resemblance TO the pre-
sen. case Texas which had been part Of the colony
Of Mexico and dependency of SPAIN declared herself
an Independent State, and subsequently made herself
oil the United States. II was held by all that Texas
continued liable for the loans which had contracted
and that the only difference which resulted from the fact
one Of aun the unsd that
medium Of the authorities Of the United States In
conformity with the constitution Of l7ss But
icaas hau pcen tho oorfowcI, anu .oh'Hi'eu
LIABLE and the sole party TO pay the debt,
and would, think, have been equally liable had
II again become dependency Of Spain instead Of becom-
ing OF the United States II therefore appears TO me
That " the principle generally adopted were applied TO
the present the liability OF the States which united
az the Confederated States would be admitted by the
United States government; but is most certainly in the
power Of the United States the conquerng party 70
admit deny the liability. Upon this part OF the case
| have assumed that the States which originally const
| tued the United States have not by any proceeding
under the fifth article Of the constitution Of 1857 altered
% INDEPENDENT /
heard Of any such alteration have found note
Of any alteration In any work which have consulted /
have doubt that II the contractor have portion Of
the loan his hands unapplicd, or II he have in his
hands any property funds forwarded to him by the
Confederate government or their agents to meet any la
bty or payments account In respect OF the loan
that he is liable to the contributors; and appears 10
that IL there be 10 suppose that he has any such
property or funds his possession, would be prudent
10 Gle hill cauity Qgninst him Tho frnme of the