National Republican., 1882-12-26

something WOrse-lOr the iuture dinlOnacy
of the United States. | have alrca d taken
the liberty, in previous published letters, of
earnestly calling attention to this important
feature of thesubiect, and If now again utter
The cry of alarm, IL is because l am forced to
do 1t by sentiment Of patriotism and of love
of Countrywide only sentiment which pre-.
sides at the writing of these letters-as you,
dear admiral well know.
FOr'wheu the final crash comes, what will
take place? The poor, who, in large numbers,
invested the whole of their little fortunes in
the sche me, will turn furiously on the conf
pany and demand relief; and what will the
company do? The company-their intention
is well known-will declare that it is the gov
ernment and people of the United States, who,
by their opposition and hostility, by the many
obstacles they have thrown in their way, have
been the cause of the failure, and who have
thus become the responsible parties and they
will appeal to the French government to in
terfere, and in their room and stead, to as
sumo the settling of the difficulty.
Now in order to prevent this government
from entering into the affair, or from attempt
ing to shift the blame of the failure to the
United States, il will only be necessary for
the government of the United States to point
out in an official manner to the government of
France-a thing which should have been
done long ago, but which it can easily do at any
time, for the documentary proofs can be had
whenever wanted the papably immoral
manner in which the scheme was placed on
the market. For in decided immortality, in
positive Misrepresentation in the thinnest
and most obvious of dcceptions, in the want
of all semblance of dignity, nothing like it has
been seen in this century. 1t reached that
point in boldness in the art of deception at
which comment is silenced by astonishment.
Instead of the great principles of honor and
grandeur, and open discussion which ought
In prpsi1a OF tho izoti IF ln orr1, a
est humanitary enterprise the world has
ever seen"-to qoute one of their favorite eX-
pressiOns-it was forced on the market by
maneuvers and misrepresentation which one
might not be surprised to find in the launch
ing of q patent churn company, but which
certainly had no place in the execution of SO
really glorious and Incompatible work as
that of IA great intr-oceanic ship canal
In the discussion which is sure to come, and
which from present appearances is not very
far oil, American diplomacy will enjoy an
easy advantage, for the documentary evidence
is abundant and positive and without any
sort of mask. The Paris journals, including
the official journal of the company, especially
preceding and during the period of, thelsec-
ond successful attempt at a loan will sufliteto
prove every thing that is desirable Ishall
here expose, in brief, a few of these proofs as
good examples of the whole. &
The first attempt to put loan on the mar
ket failed because there was no embargo on
truth. Many fanatical persons proclaimed
that the personal popularity of Nj. De Lesseps
was sufficient to float any loan. But the
bankers, positive kind of men, were not sure
of this, and they were not altogether sure
that the hostility of the United States had
been neutralized. Moreover, they were GER
tain that no loan of such a colossal sum as
twelve hundred millions of francs could be
got off on the public. The figure would
frighten the stoutest-hearted.
"What figure will not frighten the public?"
asked the organizers of the scheme. "The
public will not be alarmed at figure of five
or six hundred millions of francs, but even
at that figure they must be well assured that
there are no obstacles in the way, and that
the operation is good one," was the reply.
And here we come to one of the most astound-
ing features of the scheme. NJ. De Lesseps,
not to be defeated by any consideration what
ever, determined that the canal should be
dug at the low figure mentioned, that there
should be no obstacles, no American hostility,
and that, to accomplish these ends, or rather
to enable him to obtain the apparent proofs
that he had accomplished them, he borrowed
several hundred thousand francs, which
money was to be paid in the future out of
the stock subscribed by the dupes who had
believed in his proofs. They We're made to
pay for the very Misrepresentation which
induced them to subscribe!
In this way banking syndicate was
formed to manipulate and place the loan on
the market. Nj. De Lesseps was to obtain the
proofs that the cutting of the canal was not
to cost more than the small sum mentioned
above, and the proofs also that there were no
other obstacles to the scheme. But how A?
For he had no money, and the banking or
loan syndicate would not attempt to launch
the loan till these proofs were obtained. So
they issued few hundred thousand francs
Nyn nf 81 fnnly nj four r.,,,,
the share, which stock was to be appropriated
to the obtaining of the proofs and the or
ganiZation and launching of the first loan.
This stock was to be called founders stock"
and was to receive a large fixed dividend, Il
believe so per cent?, no matter whether the
rest of the stock to be issued afterward to the
public in general for the execution of the
canal ever paid dividend or not. Till the
canal was finished, these dividends were to be
paid from the money subscribed and paid in
by the takers of the loan. And this was the
way that the dupes were made to pay out of
their own pockets for the siren songs which
made them dupes!
With this money NJ. De Lesseps undertook
voyage to the isthmus taking with him some
members of his family; and after a residence
of two months in hotel in the city of Pana-
ma declared triumphantly that he had found
and corrected important errors in the esti-
mates Of his engineers and that the canal
could easily be cut for 520,000000 francs also,
that the isthmus was most delightful and
healthful residence. Witness the fact that he
and his family had resided there two months
without pain or an ache
From Panama he went to New York, and
he declared also, on his return from there,
with eXultation that he had converted the
President of the United States and the people
thereof to willing cooperation in his
scheme!
This was enough. The banking syndicate
would have been hard hearted indeed to have
asked for anything more. M. De Lesseps had
his proofs" and the public were willing to
believe what NJ De Lesseps said. The launch
ing of the second attempt at loan was de-
cided upon and accepted as a healthy opera
tiOn by the banking syndicate, which was now
duly organized and embraced two or three
dozen bankers of good standing.
The balance of the money acquired by the
subscription to the founders stock was ap-
to the buying up of the press. The
organization of this second attack on the pub
lie purse was quite different from the first one.
In its mOdus Operandi it smelt strongly of the
congress, but even left the congress and its
far in the shade. The press
was so completely taken into the opera
ton that not one line, not one word,
against the scheme, could reach the public
ear. And as the bargain was made on the
principle of mo cure no pay" for if the loan
was not pushed through there would be no
stock, and, therefore, no pay, there com
menced at once a campaign of putting which, |
for fury and for want of respect for the truth |
will certainly remain unprecedented in the |
history of stock jObbing operations. All
was exhausted the first day, and |
after that, as each day had TO bring new idea
or invention better or more brilliant than !
that which preceded, You can imagine some
thing of the colossal prOuortiOns thN rrnscando ]