The Portland daily press., 1871-10-23
IpAILY PRESS,

PORTLAND.
~1EN n A-<H IA -
MONDAY, OCToBER-23, 1874

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ys,,s, ~ p,v The Confederate BOndsF
Con Rntler thinks that the British govern
ment will present among the claims iaid pc
fore the Washington Commission demand
for the payment of the Confederate Cotton
Loan to English holders. He thinks that the
terms of the treaty are broad enough to IN
clude even that preposterous claim WHICH ho
American ever entertained for moment
without mingled derision and ihuisna'lon'
The origin of the loan is wen reiieihoereo.-
Certain members of the English aristocracy,
desiring TO secure the overthrow of this Re-
public, were willing even to invest their mon
ey in the enterprise. So they made loan
to the Confederacy, taking therefor the bonds
in question which were secured by a pledge
ofcotton. The collapse of the rebellion of
course transferred to the United States the
security for their loan, and their bonds be-
same waste paper.
Gen. Butler,i we understand him, by no
means argues that the preposterous claim
must, according to the principles of iEterna-
tional law, be allowed. He merely says that
the language of the treaty permits its con-
sderation, and that we have bound ourselves
to submit il the Commissioners decide against
as. But there are those even among Ameri-
cans who hold that the Commissioners mast
decide in favor of the bond-hoders. Very
concisely stated their argument is this: ut is
a principle of international law which is per-
fectly well-estabished that the obligations of
every kind incurred by de .facto govern
ment must be assumed by the government
which succeeds it, no matter how illegitimate
the authority of the first may have been
The successive governments of France have
never failed to charge themselves with the
liabilities of the governments that have pre-
ceded them. The case is not at all oAaotea
by the fact that the debt may be incurred by
the leaders Of rebellion, or by usurper.
In any event it must be paid, if the rebellious
or usurping power passed beyond the stage
of mere military occupation, and ruled through
the agency OF the civil magistrate. The Con-
federacy avas de .tacto government. We
declared, it is true, on all occasions that 1t
was mere revolt with no shadow of legiti-
macy about it. But we acted as if il were an
independent nation, and claimed all the rights
of actual war. To say nothing of the block
ade, we exchanged prisoners, confscated prop
erty and enforced the obligations of neutral
ity on other nations. We claimed to succeed
TO the ownership of the abandoned property
of the Confederacy and had our claim allow
ed. Foreign nations, too, conceded belliSer-
ent rights to the ConIederacy. Therefore,
there is perfect case for the bondholders, if
the English government chooses to urge it,"
But there are two circumstances, which, in
our opinion, outweigh all that can be said on
the bondholders' side. The English govern
ment is not obliged to present the claim, and
will probably hesitate long before voluntarily
bringing forward so iniquitous charge. The
terms of the treaty make it impossible for the
bondholders themselves to prosecute their
claim. Moreover, if the matter should over
come before the Commissioners, the terms in
which the contract is couched will prove bar
to its enforcement. The whole thing was a
speculation on The part of these British Rebel
symyathizers, and their bonds were made
payable on the happening of future con-
tingency-"the recognition of the independ-
ence of the Southern Confederacy! 1t would
be a strange Commission that would declare
the bonds payable before they mature!
IT really seems as if the impudent question
of Mayor Hall of New York, "What are you
going to do about it?" is on the point of be-
ing answered. The iEco npesent States At
torney of New York has associated with him
for the prosecution of the frauds Charles
OConner, whose ability is only comparable
with his honesty, and whose reputation in
both respects is exceiled by that of no other
lawyer in the United States. And to make
assurance doubly sure, VIM. M. Evarts, Judge
Emott and other eminent counsel arr to be as
sociated with him. Honest men may perhaps
dance at Tweeds funeral yet.