Wheeling register. [volume] (Wheeling, W. Va.) 1878-1935, 1881-12-23

amount of bales of cotton in possession
of the Confederate Government, and the
readiness to subscribe to the loan is ex-
planned by the fact that
the war had cut off En-
glands usual supply Of cotton, caus-
ipga cotton famine in Lancashire, which
made the cotton securieties offered by
the South great temptation to English
capitalists.
But the conditions incident to the
war at that time prevented the cotton
being actually transferred to the bond
holders, and they hadto dissatisfied with
the simple transfer of its legal owner
shin It cannot be disputed that had
theysgot actual possession Of the cotton
they would have been entitled to hold
il. ...- ...
When, however, the war ended in the
utter defeat of the South, the victorious
North seized this cotton and paid the
proceeds of its sale, amounting to some
f3, OOO, 900 sterling into the Treasury at
Washington. Under the condition OF
the loan the bondholders were entitled
to exchange their bonds for cotton at the
rate of Cd. per ID. but the action OF the
victorious party in the civil war of course
made that impossible in regard to the
majority of the bonds, though a few of
them were so exchanged-a fact which
establishes the purely mercantile char
acter of the transactions.
Up to March, 1865, dividends were
paid TO the bondholders; but on the
overthrow of the Confederate govern
ment and Incorporation ofthe cotton
by the Federal authorities these ceased:
The North took over all the assets OF
the South, but made no allowance Tor
its liabilities. These assets were eStima-
ted at 20,0O0,0OO dolls. by Mr.. SEWARD,
and the Government of the United
States were only by international law
entitled TO appropriate them subject to
the liabilities, so long as there were SUI
ficient funds to pay the latter and COM
pensate the United Statos for their lun-
mediate expenses in connection there
with.
In support of their legal claim to this
cotton, the bondhOlderS cite the opinion
of Lord HATHERLEY, in the case of the
United States vs.. PriOlean, in which it
is declared that "the COnfcderacy of the
Southern States having been displaced,
the Government Of the United States
stood exactly in the position of those
who had acquired the cotton, and the
displacing Government succeeds to all
the rights, and he did npt feel very much
doubt that the United States, in taking
this cotton, took it subject to all agree
ments made in respect of it by the Con-
federateS."
But the Federal government has en-
deavOrcd not only to forever silence any
claim Prepayment of this debt on its own
part, but also to prevent any Southern
State from paying it, by the provision of
the Fourteenth amendment to the Con-
stitutiOn, which declares that neither
the Unitod States, nor any State, shall
assume or pay any debt or obligation in
Cured in aid of insurrection or rebellion
against the United States; but
all such obligations and claims shall be
held illegal and void"
This is the case as stated by the bond
holders, and the answer to 1t by the
United States government is stated in
the Fourteenth amendment to the Con-
stitutiOn Just recitcd), which latter the
English claimants holdth United States
had no right to make, because, under
that same Constitution they have no
right to impair the obligations of a con-
tract.
1t cannot be denied that the bond
holders make some show of plau5ibility
in presenting their case, and that they
intend to press it to an issue cannot be
doubted.
In a circular recently issued in Lon
don by the chairman of the Committee
of BOndholders, a copy of which has
been addressed TO the editor of the REG
IsTER, and to which we referred, he
closes by saying:
My object in touching the matter is
TO show the reader that it is a mistake
to suppose, as some people in New York
evidently do, that the gentlemen who
are at the back of this movement are
flying kite for speculative purposes;
and that their proceedings are only cal
culated to amuse. The committee are
men of the world, and first-clasS bust
downright serious anu earnest was ever
undertaken in this market, than this
same registration of Confederate bonds.
And again;
In conclusion, permit me to remark
tnat whatever may be the present effect
upon the mind of the American nation
of the various statements issued affect
ing the value of the Confederate debt,
the committee are sanguine thatthc day
will come when America will listen to
the voice of justice, and will recognize,
or at least will permit the recognition
Of obligations entered into in good faith
on both sides, and still undischarged. It
is, therefore, the intention OF the COM
mittee to persevere in the task before
them, however laborious it may appear,
confidently believing that the bondhold-
ers will give them their moral and sub
Stantial support and assistance in obtain
ing a recognition of what has been pro-
nOunced by the most distinguished legal
authorities to he valid and subSiSting
debt. q. LIMBO,
Secretary to the COnlmit.
CHRONIC Rheumatism and Catarrh. Took
Peruna. Am well. Mrs. +. OlinghOusen,