The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-02

is passed by the House. Retrenchment Ia tho
first essential II we would tighten the burdens
Of the general taxation and save the Treasury.
The Rebel Cotton Loan-Ths Last kick
OF the English Donaholaers.
The letter Of the Secretary of State to H.
Secretary Of the Treasury, which we publise
this morning, in reference to the relief Of Tho
distressed English bondholders Of the rebel
cotton loan and to certain proposed new Eng
lish loans to "the cotton and tobacco States" q
the South, under the management of George
McHenry, Of London, and said rebel bondhold>
ers and others, will be found to be vert
curious and an entirely satisfactory State paper.
1t embraces a synopsis of the contents OF cor.
tain papers referred to Mr.. Seward by direction
of the President and the Secretary's passing
remarks and final conclusion thereon These
papers include. first, letter March 10, 1860
to the President from the English bondholders Of
said rebel cotton loan. Second-A letter, same
date, from the same parties to Governor Orr.
Of South Carolina. Third-A letter, same date,
from the same parties, to Hugh McCulloch, Sec.
rotary of the Treasury. Fourth and fifth-Twe
letters from George McHenry, April 10, to tho
Secretary Of the Treasury. The objects soug4k
by these parties are: First, copy Of the c6fis
tract between Erlanger & Co., Of Paris and the
late rebel government Of the so-called Confed-
crate States, which, 1t is supposed, is in the
possession Of our governments, with other docu.
ments on the subject; and secondly, the coua-
tenance or consent of the United States to cet<
tain new loans proposed to be raised in Eng
land, to the extent Of 100000, 900, for the re-
development of our Southern industry In COT,
ton, tobacco, &c. The English bondholders a.
the rebel cotton loan (some $4,000, 000) think
that If they can get those documents of the said
contract they may yet be able 10 squeeze soma
money out Of Erlanger & Co.; and that II our
government will give Its moral support to tho4p
proposed new Southern loans, the parties cory
cerned in giving the South liberal helping
hand will give Increased value TO Northern
State and federal securities. Best of all, thesa
Confederate English bondholders think that
through these new loans they may, after awhile.
get something from the generosity Of the South
ern States upon those aforesaid rebel cotton
bonds.
Mr.. George McHenry is the infsllible 6nan,
cier Of the English holders Of these rebel oOt-
ton bondS.in these arrangements. They have
great faith in his SURPRISING financial wisdom
and patriotism, and he has great faith "A him
SELF The Secretary Of State, howeves, afses
summing up their case, very coolly knocks Nh.
McHenry on the head, as fre-eaing rebel
pamphlet writer and fnancier in England dur
ing the late war, and then says that in hia
opinion neither the nature Of these several
communications, nor the matters discussed
therein, nor tho form in which they are therein
treated, nor the character of their authors, nor
that of their agent (MoHsnry) is such ss to d.
serve consideration on the part OF the govern
ment of the United States" This being sun
cient for the occasion, the Secretary has ~
more TO say.
Thus, then, ends the speculation Of thcss
English investments in that famous rsbeR
cotton loan. Their thirteen millions Of dol
lars put into this business have gone
up in o balloon. Erlanger & Co., q
Paris, and NJ Erlsnger's hopeful .fatherin-
law, slidell, are supposed to have made .
good thing Of it. Laird & Co., the shipbuildem
OF the Alabama, Shenandoah, and those rebel
rams, got good share Of the money, but upon
the whole were losers, and the capture Of JeR
Davis spoiled their calculations of millions %
profits. Rebel Confederate cotton" at twelve
cents pound, when 1t commanded from City to
sixty in England, was temptation which John
Bull could not resist, with the conviction thas
the Southern confederacy was q sure thing.
Now we presume that with the cool dismissal Of
McHenry the unfortunate Briiishers viii hardly
hesitate to exchange those rebel ''Confsdsrass
cotton" loan bonds for Confederate scrip, and
this, no doubt, will still be furnished them on
application by Erlanger 4 CO., or John slideli.
or, peradventure. by Jake Thompson or The
Hon. Ben. Wood.
City Intelligence.
POLICE STATISTICS FOR rns QUAsrr Esrno mar L.