The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1866-05-02
REBEL COTTON BONDS.
..~~~~~~~~>>~->.>~>~~~>
--latest Project Of the British Holders to
Get Their Money Back.
Their Proposition to the
= United States.
-~~~~~>~So~.-~c~~~~4e~~~-
John Bull Anxious to Relieve the South
Of The faint Of Reputation.
Admirable Specimen Of English
Neutrality.
e>~~~~~>~~~~~-~~~~s
Nr. Stewards Sarcastic Letter Declining to
Consider tho English Claims.
80. &c. DO.
Admirable Specimen Of English
Neutrality.

Consider the English Claims.
80. &c. &c.
WASHINGTON, May !, 1868.
Tho President sent message to the House TO day. in
rresponse TO resolution of the 25th Of April requesting
information relative to the rebel debt known the scot
ton loan transmitting report from the Secretary Of
state to whom it was referred as follows:-
MR. SEWARD TO MIR. M'CULLoCH.
90 DfrAnrsESr OF STATE, WASHINGTON, April -, 1859.
The Hon HucH MccuLLocH, Secretary OF the Treasury
sH--By direction OF the President l have examined
certain papers which you have submitted relating
SO the Iase rebel loan and which are as follows
F.rst--A communication, which Is addressed to the
President and which bears the date of London the 10Th
OF March, 1865 and is-sfgned by order of Sir Provo
Waiis Knight D E. Morgan Secretary Francis Phil
lips, @. NJ I. Weston, W. NJ. Morgan and T. Harvey.
second-A communication Of the same date addressed
20 Gil. ESeelency James L. Orr Governor Of the State
the Same form
Third-A Communication bearing the same date,
Hugh McCulIoch, Secretary OF the Treasury.
Fourth and Fifth--Two letters from George McHenry,
Hugh McCuloch, United States Secretary of the
Treasury.
George McHenry in his first letter to the Secretary Of
The Treasury develops for the consideration of this gov
eminent plan, which he says he has proposed to the
u ha H. anu s %h sa ney nave ac
shall furnish to that committee copy Of tho contract
whchhe says was made between Granger and Company,
of Paris and the late rebel conspiracy at Richmond,
together with the particulars of the settlement OF the
same. which contract and investment McHenry
conspiracy which have into the possession Of this
government. When the papers indicated shall have
been delivered over to the Committee OF rebel bondhod
London then the committee promise that the
standing rebel cotton loan bonds shall be delivered up
ayents of the United States for cancellation.
2. The aforementioned bondholders shall waive any
hight or claim they may have under the laws OF
England any funds that are in the hands Of the for
her agents Of the last traorous conspiracy at Rich
nond
3 The sad bondholdors shall guarantee that either
bey their friends will subscribe forthwith new
o be created by the cotton and tobacco states what
pafcesr States are meant Is not more distinctly OK.
Loudon the to be used solely in redeveopng the
resources OF these States.
being restored through the influence OF the lasnancd
operation second loan Of f5 900 TO be taken at 90
centum within three months aftor the placing Of the
s. In the event OF such second loan being successful
Then loan for flO 0oO be taken per cent
George MoHenry argues In support of this scheme as
tollews:--
,s:ss per s..iiss sscS.
md hsSls isdsraI securities found Tiers
.sIa: :s sy g. ss sa ssa.Ha
and hs time remove ANY the Con-
ss iaaa' from INC '''1
According to Mr. McFlcnry the bondholders asge that
a. they purchased their bonds from Messrs. Erlanser
and Company ndcrImisrepresentatlons they he bond
bolder) have chance OF recovering something from
that house If they obtain copies OF the contract, with
rarticulars Of settlement.
Thea, Mr.. McHenry adds
quite clear that unless these cotton bonds are put out
ny negotiation state railroad or
~ ss s nS srea NE
ESS.ns S p', ssT
regard % Spain. speak from e,p.,lsnes As have
o the Southern states N order 70 encdusss the sSufe
ssa
s IA he s, xy Thai deS re%ove
Mr. ncHenry closes his rsi letter TO the Secretary Of
the Treasury with the assurance that his gemens
such that the public credit Of the South be res,or
ed he viii be able to borrow for the various Southern
rsr fair terms much money In Europe as they
Mr. McHenry in his second letter to the Secretary Of
the Treasury, informs that q committee Of bond
holders handed to him txr. MtHenry) printed mat,
ter pres mt to the Secretary, which he tMr Mceny
finds upon examination, contains an opinion OF the
English counsel OF the rebel bondhoderi that the United
ststes governmen Is responsible for these bonds Mr.
kcHeny states that he does not wish 70 enter upon sai
point aud therefore he retains the printed matter He
seeks 10 prepare the way for gaining the conndencs o
inc United states Sy bonas 'Ii bs. he
advised the bondholders to abandon all claim
upon the United States, ana upon any prope.tyc OF
who received the money for the bonds Hce declares
that the bondholders had no dealings with the Con.
fcaerac authorities that the transaction WINS conducted
by certain persons called hessrs Schrodes Co., who
acted agents for Eranvcr Co., and not agcnts
in letter 10 tn bondhoIders. Of date November H.
1885; that they do not feel OF liberty 10 give the
bodnoasrs me inspection OF Ine con,rac'' WIEN ~
with themselves. He adds:-
There prevalent that a. The date Of Ma, letter
nj scousteratIe sum Of money bgt Una. hey settled
him bond. oil The cotton which they at about
pence aud wli he afterwards sold a, about the same
He proceeds TO state further tina, the manner which
tie agents have acted has In no way tended 10
streng hen or elevate southern credit
Tho representations which are made by tho English
committee OF holder OF rebel cotton bonds IN The paper
which McHenry submits In their behalf may be briefly
Tho applicants inform the President that his patriotic
and stacsnsnke policy towards the southern staes o
the Unionl hns excited admiration In England They
especially call his attention TO the manner In which ts
administration u illustrated by the fact that they wht
With their correspondence, aud that in this concspon
dence they congratulate him upon his noble Efforts
restore tho Union OF the States, and thoy urge him
'.pcrsctore In every manner" In order to accomplish
TIE writer's say they rsprcsen, large financial inter
IA England, but without telling when whers
they 80 represent that interest In general they pro
csed 20 cay that In Their capacity Of committee they
so,,su bcnds which wrre Issued under the loan con
tfacted by Messrs Erlanger Co, Of Paris, with tn,
southern States lately conf, deratcd-
without c.painng dwelling upon The injuries
Sorunes aud losses 70 which they 20 fcclingy alludc
hey az they are content 10 leave The settlement th
,ns ~ their Constituents the rebel cotton bondhoid
ers, 10 the msgnanimty Of the United states.
having thus voluntarily submitted themselves 70 tn
justice q the unied States they proceed 70 new an
drstlncl subject
'our de- they say 'now . TO assIs, the sou,her'
Sag ,he resources Of these states and thus promotn
abe prosperity OF all the United states
They nss pessn, 20 h s ,sy noIe Ss
ing 20 the desire they have thus expressed This din
Guilty % stated In the following words.
Under the circumstances, however, In which you hsv
"