The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1865-11-08
The Anglo-Rebcl Cotton Loan-Tho Las
Kick of the BOndholders.

The AnUlo-Rebel Cotton Loan-The Last
Kick of the Bondholders.
The British holders Of the rebel seven per
cent cotton loan are in very bad way. They
are beginning to see through the grindstone.
They had in the London Tavern, on the 18th
of October, regular Irish wake over the
corpse of their Southern confederacy, and they
tried to console themselves that its debts of
honor would at least be paid by the heirs at
law; but the effort was failure. They will,
with the arrival in England of the steamers
which left this port on Saturday, realize the
astounding fact that their so-called "Confede-
rate cotton loan bonds" belong to the category
Of South Sea bubbles, Yazoo speculations
and mOrls multicaulis investments. Presi-
dent Johnson's despatch to the Provisional
Governor Of Georgia, which went out for
England Saturday, in which be says that "it
should at once be made known, at home and
abroad that no debt contracted for the pur-
pose Of dissolving the Union can or ever will
be paid by taxes levied on the people for such
purposes" knocks the bottom out Of the tub,
and breaks it up past all mending. The meet
ing Of these English rebel bondholders in the
London Tavern for the discussion Of this de-
spatch of President Johnson will be doleful
spectacle
Meantime these anxious bondholders do not
utterly despair. First they proceed TO inquire
how stands the case. Messrs Terrell d Co., Of
London, address note to Messrs. Emile
Erlanger & Co., Of Paris, the contractors ofsaid
rebel cotton loan, asking for copy of their
contract, the amount of bonds issued, the bonds
cancelled, and what moneys they have received
in respect Of the loan, and what effects they have
on hand which can be. made available In the
payment Of interest, &c. To which Erlanger d
Co. reply (Erlanger being the happy son-in-law
Of John Slidell,) that they have no funds and no
property available for the said interest on said
loan; that the money received by them in re-
spect Of the loan has been paid over to their
accredited agents, and that their contract with
JEFF Davis 4 Co. is a private document, and
cannot be seen. The bondholders must be sat-
isfed with the prospectus. J. Henry Schroeder
Co., London agents Of Erlanger 4 Co., make
similar reply; whereupon, at the London
Tavern meeting, the committee Of inquiry say
that las, sooner CT later, the United States
government as successors Of the late Con-
federate government, will call upon Messrs
Erlanger 4 Co. to render them On account"
the committee will seek no further information
in that quarter The United States are to make
Erlanger & Co. show their contracts and settle
up with these men! If the melancholy and
morose Slidell has ever laughed an honest
laugh for the last five years, II must have been
at this good joke from the London Tavern.
Andy johnson and his Secretary of State have
doubtless enjoyed it as the best thing Of the
season.
But the distressed bondholders In question
did not stop here. They consulted lawyer, .
Mr.. Fleming-a learned man upon international
jurisprudence and what does Mr. Fleming say
He says the bonds are legally good, that they
ought to be paid, according to his views Of
State rights; but, then, as the conquering party
(the United ststcs) may disallow and reject IT,
and deny the liability Of the late Confederate
States, the best thing that these bondholders can
do is to bring suit against Erlangcr & Co.
Fleming thus gets of good joke for the
amusement Of Erlanger and Slidell, who, with
their money in their pockets, can afford 10 be
jolly.
The committee finally conclude that proba-
bly, at some time or other the United States, or
the States Of the late Southern confederacy,
will redeem their bonds-about twelve millions
Of dollars; that, as they sell now for something
al the London Stock Exchange they are not
wholly worthless that Mr.. Seward does not