The New York herald., 1865-05-29


sbe letters of our correspondent at that p1ace.
4 oisiI war has been most disastrous to that
onye thriving and prosperous city, a. well as to
the progress of Bagdad, town at the mouth
| of the river, which was just expanding into
! great wealth and soHdity. But few months
ago those places were in the height of the
successful career which has attended them
since the commencement Of the war. So long
as hostilities were kept up on American soil 80
long did splendid opportunities present them
selves 70 the traders of Matamoros to grow
rich and wax fat. Everybody who wanted to
make lots of money in hurry rushed TO this
| Mexican Babylon. Those who arrived there in
the earlier stages of the rebellion were very
| successful, and their representations to absent
| friends were 80 deigh.fuf that shoals Of needy
adventures focked after them, expecting to-
reap q like golden harvest These people
never for moment reflected that the war was
closing UP rapidly, that she rebellion had al
ready received its death blow, and that, with;
the cessation Of hostiIities, the prosperity OF
Matamoros would speedily depart. Yet such
| was really the case. tfaAf.aqsa. K Avg.-as. lAt
I With the fan Of Wilmington the fate Of Bag
dad and Matamoros was decided. The closing
Of that rebel port was q sad affilctiOn to the
contrabaDd traders Of the Mexican border, as it
came home to them and affected them in their
| fate Of Wilmington should be that of Matamoros,
and then it was that como Of the adventures,
began to see that their line was about run out.
The train Of causes and effect are well depicted
by our correspondent Gold and cotton soon
began to fan, and as nearly all demand from
the interior Of Texas was cut of, business be-
came stagnant, and the prosperity Of the place
soon passed away, even more promptly than its
wealth had been accumulated.
There is now little or no trade at Matanho-
ros, and there is nothing there to invite. specs-
lators except the probability of an Impress
ment by the imperialists or liberals to assist
them in the trenches, with poor prospect Of
pay. Instead Of adventurers rushing to Bag
dad now, those who are there are doing their
very best to get away, leaving their goods in
the hands of agents to be sold at any sacrifice.
The surrender of Kirby Smith and the last
remnants of the rebel armies is another severe
blow to these Mexican cities What with the
ravages of war in their midst and the total ces-
sation Of the immense trade they formerly held
with the rebels they will shortly relapse into
total insignifcance and be entirely forgotten
as commercial centres of the Mexican republic.
Confederate cIders In Europe.
= Our advices from Europe are interesting.
The quotations in the London money market
show increased confidence and some improve
ment in American securities, United States
five-twentes being quoted at 641l q IS. The
surrender ofJohnston's army did not produce
any marked effect, that event having been re-
gardcd as q foregone conclusion tao 'ssa,s
~ The most extraordinary part of the news is,
however, that which refers to the rebel loan,
negotiated in Europe on cotton securities. The
loan was never ut any time very solid or re-
liable investment; but as long as the con-
federacy continued to linger through its pain
sul existence there were q few capitalists who
were fools enough to throw their money away
on il. Its fluctuations were quite remarkable.
Sometimes it stood at 80 or 95, then receded to
40 and so, and now il stands at IL and
| IA. Most people, even those who are con.
sidercd good flnanciers, are aston.shcd at
this curious exhibition of vitality in the rebel
| loan. They argne that now that thu rebellion
| ia over, its armies conquered and dispersed,
| and its principal leaders brought Into submis-
| sion, The rebel loan and everything con-
| nected with it should come down with crash,
the past. They cannot understand how
1t is that foreign capitalists will still
think of an Investment which everybody on
| this side of the water knows to be practically
dead. But the matter ID very easily explained
| The rebel loan is based on largo quantities Of
| cotton supposed to be stored in different parts
| Of the Southern States; and European bond
holders, through the rawlings and >bombast Of
Mason and Slidell, the London Lder'and other
| cognate rebel organs, are led to believe that
this cotton is still in existence, and that it viii
eventually be applied to the payment Of
rebel liabilities The faith Of capitalists in
this fanciful theory is what gives a semblance
Of life 10 the loan. H
But our friends on the other side Of the water
are somewhat mistaken about this matter.
| They seem to have forgotten that by the
terms of surrender of all the rebel armies, forts,
ships, guns, arscnals and munitions of war,
there is no property of any kind whatever be-
longing to the exploded confcderacy. There is
not a bale Of cotton other than private property
throughout The South which does not now be-
long 20 the United States government. The
rebels and their so-called confcderacy are COM
plctcly played out, and those who were credu-
| lous enough TO believe in their "promises to
pay" must now pocket the consequences. They
have no money nor anything representing it.
Their bonds--including those based on cotton
are just about az valuable as their Treasury
notes, which are fast being gathered up by en-
terprising rsgmcn for transmission to the paper