The Charleston daily news. [volume] (Charleston, S.C.) 1865-1873, 1871-09-30
MEYER GIVE UP THE SHIP.
The Washington Treaty and the Cotton
BondholdeIs-An English Statement
OF the Case.

From the Manchester Examiner. September 16.]
The appointment OF the Joint High Com
mission, which Is "by common consent 10 in.
clude all claims ior compensation which have
or may be made by each government, or by It's
citizens upon the other" has induced the
holders of Confederate cotton bonds to vigor-
ously prosecute their claims, and very inhu-
entail committee has been formed In London
to watch over the Interest OF the claimants. A
very youminous correspondents has passed
between the committee and the Foreign once,
aud, inasmuch as five millions sterling ofclalms
are affected, the present position OF matters Is
of the greatest interest and Importance. Earl
Granville refuses to put any Interpretation on
the articles of the treaty OF washington Dy
which the bondholders are governed, and,
writing on the subject few days ago, MT.
Odo Russell Informed the committee that, "
am directed by Earl Granville to state oyou
that his lordship cannot offer any opinion or
give any instructions respecting any partieu-
lar class of British claims, but that all state
ments of claims which may be forwarded u
her MajesLys agent for claims at Washington
in accordance with the terms OF the notlhca-
lion of the 9th and 30th June, will be submit.
ted by him to the commission"
The case of the bondholders is this. The
bondholders. after obtaining from Lord Cairns
aud Mr. Cotton, Q. c., their opinion as to the
| legality of the loan, advanced their money az
option Of exchanging that bond for cotton al
the rate of six pence per pound six months
after The expiration Of the war between the
| two belIgerents, aud many bonds were sc
exchanged by those who ran the blockade
The price at which the bondholders advanced
| their money, VIZ, ninety per cent, Is, IL II
said, q clear proof that II was meTcanIlls
/ kSoo
bonds were not above sixty at the time. Du
ring the existence of the Confederate States
thew tulflled their contract with the British
| bondholders, and. consequently, they mad nc
wrong to complain Of. Between 1858, ano
even UP to March, 1865, the dividend was pait
on The bonds But six months after the e1pl
ration of the war, when the lime CAM
Northern States seized on all the pub
lie assets of the Confederate States, especial!
| cotton. and compelled them TO repudiate tne
debit coutrated with British subjects. The
| United States, neither at the time the cottoI
| loan was made nor during the war, neVel
gave notice to the bondholders that, II Victorl
Gus, they would repudlate the debt. II
made known that reputation OF debt was tt
be the issue, neither would have been able tc
raise money in Europe. The United States
after the war, seized the assets of the Southern
States. and also commenced actions for the re
covery of property In this country; put I'M
| English courts of law have Invariably main
tanned that they could only OBTAIN @ + ING et asset
States assets In England were computed b!
Mr.. Seward al $40, 100000, and the cottoi
| seized and sold in the United States and pail
| into the Treasury realized upwards OF ,OeO,
600. exclusive OF what was burnt and Destroy
ed. In 1867 the cotton loan bondhoders me
morialIzed Lord Stanley and stated lhel
wrongs and prayed that II any triouna
were established for the settlement OF ih'
claims between the two countries, una
ihejrs should be impartially heard and adJudl
coted on. Lord Stanley, as Minister for ForelgI
Affairs. promised that If any Joint commission
we're established that it would be open to TIL
bondholders to submit their claims 10 IL. Lor'
| Clarendon promised the bondholders the sam
| thing. and the bondholders believe that thei
claims werecovered by the ReVerdy johnson
treaty. At Sl events, Mr.. Sumner gave as on
| of the reasons for rejecting the treaty that IN
bonds were included In it. Lord Granvill
promised the same Us his predecessors. VIII
respect to the Washington treaty, 1t may b
stated that the bondholders so relied on I'd
promises of the three Secretaries OF State ina
when her Majesly's speech announced that
commission was 10 De appointed lor 'he toS, Set;it
ment Of all claims, the bonds rose from =
IL. The treaty OF Washington was negotia'
ed, but pending negotiations gradually fell
S. when 1t was confidently slated that ID
claims of the bondholders were exclude
from the treaty. The committee wrote I
Lord Granville, stating the rumors. and re
nnpstinr to know how the bondholders stoo
Under the treaty. They were referred 10 Al
ticle IL of the treaty, which limits this claif
10 between April. 1861, and April, 1865. Th
loan was made in 1868, and the assets wer
seized and the loan repudialed after the 81
OF April, 1866. By Article IL i is provided
"That the commissioners shall then Procee
10 The Investigation of the claims which sha
be presented 10 them, but upon such evidenc
only as shall be furnished BY or In behalf {
their respective governments" By Article !
of the treaty all claims mentioned in Article
are TO be considered fully and finally settlet
whether or not they may have been presen
ed before the conclusion of the commission
ara TO be considered as finally settled, barred
and thenceforth inadmissible.
Such is the position OF affairs In which IN
bondholders are placed, and We understan
that they have determined to have me
claims represented before the Joiut High ca
mission by the highest English or Ame
counsel, but most probably by the latter.