The Portland daily press. [volume] (Portland, Me.) 1862-1921, 1866-05-05
The Rebel Cotton Loan.


long communication on the subject of the
rebel cotton loan, and of the plan proposed by
the suffering English bond-holders for getting
back the money which they were foolish enough
to invest in those very insecure securities.
The nature of the proposal made by the COM
mittee acting for these gentlemen is set forth
in two letters from one George McHenry, an
American rebel in Europe, to Secretary Nc
Culloch. This plan is that the United States
government shall furnish to that committee a
copy Of the contract which he says was made
between Erlanger and Co., of Paris, and the
late rebel conspiracy at Richmond, together
with the particulars of settlement fthe same,
which contract and investment of settlement
McHenry assumes are to be found among the
documents of that traitorous conspiracy to
which the United States government has fall
len heir. We quote from Mr.. Stewards caus-
tic summary of the scheme:
When the papers indicated shall have been
delivered over TO the committee of rebel bond
holders in London, then the committe promise
that the outstanding rebel cotton loan bonds
shall e delivered up to the agents of the Uni
ted States for cancellation.
"a. The aforementioned bondholders shall
waive any right or claim they may have under
the laws of England, on any funds that are in
the hands of the former agents of the late trail
torous conspiracy at Richmond
3D. The said bondholders shall guaranty that
either they or their friends will subscribe forth
with to q new loan to be created by the cotton
and tobacco States (what particular States are
meant is not more distinctly explained) for
$4,000 900 at50 per centum, payable in London,
the money to be used solely in developing the
resources of these States.
4th. In the event Of the credit of the South
ern States being restored through the influence
OF the last named operation, a second loan of
a5,OG0OO0 is to be taken at so per centum, with
in three months after the placing of the first
loan upon the market
9TH In the event of such second loan being
q successful then loan of G10,O00000 is to be
taken at 70 per centum after like interval of
4 time
scheme as follows =
Thus the Southern States will receive G20,=
000 600 at an average of CT IL per cent. in ster
ling, equivalent to about 80 in Federal curren-
cy. The interest and principle being payable
in London, the bonds would of course remain
in Europe, and rot be liable as Federal securi-
ties found there are to be returned to Wall
street.
The benevolent anxiety of the committee
to restore the Southern States to position of
financial credit is very strongly dwelt upon by
them. Mr.. McHenIy says:
1t isq quite clear that unless these cotton bonds
are put out OF the way in some manner, 1t will
be impossible to make any negotiation of South
ern securities, State, railroad, or municipal, in
the London market, and what is, perhaps
even worse, SO long the pubic credit
of the Southern States is destroyed, England
will not extend her system eft private business
to those States. A similar condition of affairs
exists just now in regard to Spain.
These highly fiatte-ing inducements are not
handled very respectfully by the Secretary of
State, who also makes sharp work with the
compliments impertinently offered to Presi-
dent johnson and Secretary McCulloch, dis
missing them with an air of sublime contempt
Mr. Seward goes on with the proposal of the
committee: e..4
"Our desire" they say NOW is to assist the
Southern States with capital for the express
purpose of developing the resources of these
States, and thus promoting the prosperity of
all the United States"
I'VE have requested Mr.. McHenry to offer
the governors of the several States much
higher rata for new loan than the ante war
unrepudiated loans OF any of those States now
command IN the market"
The committee seem to assume and very
justly, that the extraordinary act of munif-
cence which they propose to perform must ex-
cite on our part some anxiety, lest il may prove
injurious to themselves They, therefore, pro-
coed to quiet our apprehensions on that point.
They assure us in this regard that they feel
warranted in doing what they propose; because
they believe that when their present claims
against the Statesl meaning, as is supposed, the
assumed claims of the bond holders of the rebel
cotton loan) are surrendered when the faint of
reputation (neaning, as we suppose, the fail
ure of those rebel bonds to be recognized and
acknowledged by any competent national or
political power) is cleared away the credit of
Stafa c(rtao i
the S.aIs lately involved in the rebelIiop.)in
Europe, will be restored and that of the Federal
States lmeaning, as we understand, the credit
of the United States,) will be augmented.
Next, by way OF showing us the unreasona-
bleness of disallowing their project the com
mittee state that if nothing shall be done-that
Is, If they do not carry out this new enterprise.
do not surrender the aforesaid claims and clear
away the aforesaid faint of reputation from
the aforesaid Southern States in Europc,-thep
the United States, the Southern States and the
projectors of the new enterprise, must all con
sinue to be sufferers by the existing state OF
affairs. The committee then again revert to
the munificence of their offer, and under SEEM
ing apprehension that it may bring their
soundness of Judgment in question, they pro-
coed to remove this difficulty by declaring that
they look at this matter in purely business
light. The interests they represent are largely
Concerned in the bonds of the several States,
North and South, as well as those issued by the
United States government. They declare that
kAoy purCuSSeQ GQe now rSDuQIat2d cotton
bonds lot the rebels) solely as a commercial
speculation, In order to obtain cotton at six
pence per pound, just as they purchased Eve
twenty stocks s6S Of the United States when gold
was az wv under the conviction that when
peace should be restored both wonId turn ont
TO be profitable operations
haV.ins maze these frank explanations the |
c9tnn'.sees recur to the subject of the embar-
fssSSllieHe Arst mentioned, declaring Themselves |
with emphasis as follows - 'neIi'oA'es
we nave now TO add that in sunnlantino;
southern creait at this juncture. we hone ;5
sne course % lew years, portion of our losses
lmeanlng, as Is supposed their losses rnsnIt;,a
from the purchase OF rebel cotton 100 Lioihg
will thus be made up; but we cannot aao I;Onu s
the risk of reputation" '" ioh
The committee then felicitate themso,,ou
with how much reason must be imnerfactI
Known to us) upon the great sum of their re-
sources, and the superior wisdom and sagacitv
and patriotism of their agent, McHenry.
we deem il" they say, alike fortunate for
restore to the South meaning tine late rebel
population of the United States) her financial
PoSition In this community (meaning England).
w feei greatly obliged to Mr.. McHenry for bis
suggesuon IL reference to these matters. His
views are eminently patriotic whether in an
AheIican, or British, or rebel sense is left
OBSCURE }, and at the same time he INF. Nc
H5ienry) appeared to have grappled with the
drmcultles presented on both sides of the At
lantic, and as far as we (meaning the holders of
the reDel cotton loan) are concerned has smootb-
ed the way for a complete return of credit
We entirely approve of the plans presented by
After having given themselves the trouble to
eoncoct this magnificent scheme, and to pre-
sent it in manner which they seemed to think
SO hatterlng, it must be slightly Notifying to
the gentlemen of the Bond-holder's Commit
tee to find Mr.. Seward, after stating all the
nfc ~, -. IL -
single curt and scomful sentence as follows:
~ am OF the opinion that neither the nature of
- s er several communications, nor the matters
o."urrea therein, nor the form in which they
ars therem treated, nor the character Of their
- nol that of the agent is such as 20 de-