The clarion. [volume] (Jackson, Miss.) 1883-1888, 1883-08-08
Confederate Bonds

The increased activity in confederate
bonds noted in the English market, i
accounted for by the fact that q syndicate
has been formed in London, with Lord
Penzance. one Of the law lords; Hon.
Mr.. Bruce, a member of Parliament;
Mr.. Gorst, another member; Mr.. Martin,
a London banker; and Mr.. Robert Stew
art, a business man of London, as truE
tees. They have already had bonds rep
resenting $50 100000 placed in their
hands, and they expect enough more to
make the total up to 500, 200. Ger
tifeaves Of q safe deposit company
are given for the bonds. If they
accomplish nothing in FIVE years the
bonds are TO be returned to their OWL
ers; if anything is realized the owners
are first to have five per cent, and what
remains is to be divided between then
and the syndicate. The latter expects
to compromise" for twelve per cent,
which would leave its members the sum
Of S3,500,000 for their profit. The
ground is taken that the Southern States
are liable in their individual capacity
for the bonds, an opinion supported, so
the story goes, by the best jurisconsults
in Europe. But the syndicate does not
propose to have recourse to ordinary
means of collection, and throw aside the
plea that the States are liable The
plan is TO employ terrorism on large
scale The bankers of London, Frank
/ fort, Paris and Amsterdam, so the story
goes, have agreed to support the scheme.
Southern enterprises are not to be
allowed to raise money in European
markets until settlement is made;
State loans are to be refused; no credit
| given to build Southern Railroads; en-
grafton discouraged in that direction,
and all the money power of Europe en-
ployed to prevent the development OF
the South. There is such thing as a
dead financial duck. This syndicate
will find that the confederate bond
scheme is little the deadest financial
duck they have ever encountered.
1t is waste OF time to comment upon
this entirely preposterous and inpracti
cable scheme. To begin with, the bond:
are not payable until the government
which issued them shall have established
its independence. They were not issued
by the Southern States upon whom the
Shylarks propose to have recourse, but
bya government which has no more ac-
tual existence than dream that vanish
ed before the flood.
If the Southern States were inclined
10 pay, which of course, they are not,
they are prohibited by the Constitution
which declares that neither the United
States, nor any State shall pay any debt
incurred in aid of instruction or re-
bellion against the States" Members
of the Legislature, and every officer OF
every State government take an oath to
support the Constitution of the United
States. No sort of penalty for non-as-
sumption Of the debt could avail to com,
| pei its payment. But the boycotting
project is simply ridiculous. The
Southern States are not afraid of it.
The syndicate of Shylocks who are en-
gagged in this foolish speculation does not
embrace the entire world of capitalists
who are seeking profitable investment
for which the late Confederate States
Ire holding out extraordinary induce
ments.
One thing is certain. The fools are
not all dead. The Confederate Bonds
can never be paid.