Alexandria gazette. [volume] (Alexandria, D.C.) 1834-1974, 1874-06-16
FOREIGN CREDITORS.

FOREIGN CREDITORS.
Time was, thirty odd years ago, when the
State of Maryland found herself embarrassed
with burden OF debt incurred In unfinished
md updcveIop ID internal improvements. She
foundit difficult pro mptly TO meet her interest
on loans negotiated in London, and her bonds
were at low figure Her best citizens, how
ever, struggled in her behalf, aud showed their
faith in her honor, aud ultimate purpose and
ability to pay. For season the State could
no further borrow the needed moneys abroad;
but still determined spirit was manifested,
and new and varied means of taxation were re-
stored to by which adequate revenues We're pro
vided, and the State credit entirely restored
There was considerable trial and tribulation be-
fore all this was accomplished Yet it was done.
Meantime, our English cousins and creditors
manifested commcndabc spirit ia the prcml-
ses. We never had occasion to call up to their
remembrance, as sct-Off, any case IN walch
their own country or cuuntrymcn had manifest
ed want OF financial integrity. Not so how
ever, it seems with Virg at his time. The
Richmond Wing has been moved by the bitter
ness displayed by MIR. Gerstenbcrg chairman
otlhc council of foreign boudholdcrs In London
towards impoverished debtors iD Virginia, to
reproduce short chapter of history showing
former British mode of settling with foreign
boudhulderS which, it thinks, is calculated to
console its readers with the ref ,ction that in
spi,c of their shortcomings they are found in
very august company.
TO abbreviate the narrative, ,as given at length
by the Wing, the Prince of Wales, after
wards George w., and his brothers. Frederick
and William, in the year 1870, baving exhaust
ed the purses of loyal English lenders, uegoti-
acd continental loan at 81 100000, chiefly
in Holland and France, through Mr.. Thomas
IlammcIsey, an eminent London banker,
guaranteeing six per cent, interest," and secur-
ing the bonds issued for the loan by vesting all
their revenues and appurtenances in the
hands Of the Dnke OF Northumberland,
the Duke of Portland, nd other great
noblemeu as trustees In 1892 about f5o0,
900 had been actually received from the sale
of these bonds by the roya! spendthrltts; the
remainder being still apon the market when
the seething convulsons OF the French revou-
ton afforded tempting opportunity not mere
ly to resist the payment OF any part OF the prln.
clpal, but to refuse payment OF Interest already
due 1t so happened that many bondholders
were among the French refugees who were
driven by the revolution to seek an asylum IN
England, and, pressed as they were for. means
of subsistence, frequent applications were nlado
by them TO the princes for payment, at least OF
the interest, upon their bonds.
This dcmaUd was refused, on the alleged
ground that the claimants were not the orlgl-
nal purchasers of the bonds they held. To
this the applicants answered that as the bonds
were expressly made transferable it could make
no difference who held them, and that, more
over. in many cases they were fully able to
prove that they were the original purchasers
and had never parted with their bonds. The
king, George Ill, insisted that his sons should
offer some settlement, but the law officers OF
the government stepped in and recommended
a total denial of the validity Of the bonds, and
by consequence of the liability of the grantors.
The matter was brought before the Court of
Chancery by one Of the bondhodcrs, when Sir
Arthur Piggott, then attorney general to the
Duchy Of Cornwall, 1.-THE property of the Prince
Of Wales stated that he had never before
heard OF the existence Of soch bonds, though
at the very time Of this denial they were float
ing upon the money market with as much pub
licity as any other negotiable security. This
public denial excited much anxiety among the
continental bondholdcrs and an additional
number Of them now came over to Loudon tor
the express purpose of enforcing recognition OF
the validity of their bonds, aud making uulted
and determined appeal to the laws OF England
for redress. 1t was evident that an immediate
stop must be put to their efforts, else the atten-
ton not only of all the other foreign creditors,
but of the whole civilized world would be dl-
rectcd to the disgracetul controversy. Accord
lnrIy, without moments notice, all of the
claimants were seized under the alien act and
placed on board u ship lying in the Thames,
which Immediately set sail for Holland, but
cast anchor at the Noire under preense OF
having to wait for necessary papers from the
Secretary of State. In the darkness OF night,
lying off the Noire. the ship was deserted by
her captain and crew, who rowcd to the near
est beach, but before they reached it the doom
cd ship had sunk to the bottom OF the sea. Not
one unhappy bondholder escaped. =.
This is certainly what the red-halrcd man IN
Pickwick would have called an ''extraordlpary
coincidence. The ouly Investigations vouch.
safed by government declared it to be most
painful accdeut-as no doubt it was to the
bondholders- all other investigation was
refused. American reputation is bad enough,
but certainly it has never gone to such lengths
as this The Whig thinks if Mr. Gcrsteuberg
is familiar with the history of this very pain
full accident" it is not wonderful that he is
averse 10 visiting Virginia for the purpose OF
conference and adjustment. Still it earnestly
invites the foreign bondholders to come and
look at Virginia with their own eyes. Rent In
suuder by the war, despUilcd OF the greater
part OF her possessions, and moncyloss as she
is, she is wiling au anxious to do what she can
In liquidation Of the just obligations incurred 10
the days of her prosperity. The foreign crcdi
tors will have ocular demonstration of this fact
il they will visit Virginia, land there is no dan.
ger il they anchor iu Hampton Roads that
their vessel will b. sunk to the bottom of the
sea.-Bat SIN.
MOUNT VERNON N URSEk kIES,
1Fl Established 25 years.
FRUIT TREES ADAPTED To THIS RE-
(lIDN a SpE(TaTTY