Savannah morning news. [volume] (Savannah) 1868-1887, 1883-08-02
THE CoNFEDERArE BONDS.
Plans of the New Syndicate-How Pay
ment is to be Forced.

The London special of the New York
/ Herald, July 29, says: "Once more the
/ Confederate bondholders have their homes
raised that they may finally be enabled to
feallze at this late day some percentage
| OF their ill-Starred investment. A new
| syndicate was recently formed for effect
! ing settlement. Its members have sub
! scrlbed 10000 for the preliminary ex-
| penses and payments of national safe
deposit company for the custody of the
bonds and issue of certificates and for ex-
penses incurred across the Atlantic. They
have secured list of trustees who COM
mand great confidence; indeed, the list is
considered as one of the most dignified
ever formed in London. These trustees
are: Lord Penzance, one of the law Lords ::
the Hon. MIR. Bruce, prominent and in
tiuential member of Parliament: Mr.
Gorst, Q. c., NJ. p; Mr. Martin. an influ-
ential London banker, and Mr.. Robert
Stewart, prominent business man in the
city. The National Safe Deposit Compa-
ny has already received $4,000, 900 worth
OF bondsln exchange for certificates, and
expects to receive much more.
The terms on which the bondholders are
to be dealt with are as follows: They de-
posit their bonds for period of tVe wears
receiving a script certificate in exchange
If after five years nothing has been ac-
complished the holders have the right to
withdraw their bonds on returning the
certificate. The bondholders are to have
the first per cent. obtained in settlement
and One-half of the amount obtained above
this, the other half to 90 to the syndicate
TO cover expenses and as a reward for
their labors This syndicate expect to be
able to secure compromise. At least
they say they will be satisfied with - to Is
per cent.
They have received the adherence of the
principal bankers of London, Paris. Am
sterdam and Frankfort who hold Confed
crate bonds, and hope by securing the so
lldarlty OF the bonds to place them in such
position as to be a constant menace to
the credit of the Southern States in Eu-
rope until some arrangement has been
reached.
''It is doubtless a fact" said my inform
ant, that Southern enterprises are con-
stantly refused negotiations in the Euro
pean markets. A prominent banker told
me that he knew of an enterprise that
was brought over to London five or six
months ago looking to the establishment
of an enormous land mortgage bank for
the development of Southern agricultural
interests. A capital of 410,00O,O 900 ster-
ling was needed, but the parties who
brought it were told that the sole obstacle
to carrying out such an enterprise was
the Confederate reputation of the South.
They We're told that by some of the most
prominent banking houses in London.
'And," my informant continued, ~
have known Ofperhaps 5000 miles of vari-
Gus railroad enterprises presented here bv
Southern people within the last year who
have been unable to raise a single pound
sterling owing to the same cause. All
would have found capital if it had not
been for the stigma resting on the Southern
States on account of their repudiated
Il Ilun
everybody in the South who gets accom-
mediation for money pays at rate of from
10 to 20 per cent. per annum, when, if the
State credit stood better, capital would
naturally flow in as it does in the North.
and accommodation for money would not
be much in excess of that for the North
My informant continued: 'eThe svndi-
cate say they have no intention to bring
the slightest legal pressure to bear upon
the United States Government or people:
that they care nothing about the question
of sentiment or politics, but propose solely
to deal with the separate States that took
part in the Confederate loans and hold
them alone responsible. They argue that
the fourteenth amendment of the Consti-
tuition is totally untenable, and that if il
were otherwise it has been the worst war
measure that the North could inflict upon
the South, as it has handicapped Southern
by the terms of that amendment to
become repudiators before the whole
credit of a seeAtn""GT fife country.
but affecting that section in such way
that the North has advanced at the
expense of the South. The syndicate also
entertain some sentimental hopes of as
sistance on the part of the United States
Government. They have a project of get
ting the Southern States to petition the
TNorr
the bOndhOlders the unapprOpriated
balance of the Alabama award and of the
large amount of money received from cot
ton seizures in the South during the war
1t is thought by them that $4,000, 900 are
lying idle in the Treasury at Washington.
This would be $4,000, 900 or $14, 900, 900, or
about One-third of the amount they would
be satisfied with as a settlement. The
amount of the Confederate debt is said to
be $40O, 900. 1t is held mostly in Eu-
rope. How much of this the syndicate
will be able to gather in remains to be
seen. At any rate, the syndicate, if sue
cessful, will reap in a vast reward for
their outlay.
Since writing the above have to-day
seen the manager of the National Safe De-
p0sit Company, who confirms my state
ment about the agreement on the Stock
Exchange to deal only in Confederate GER
tificates of the Deposit Company. Ac-
cording to this gentleman the company
expect to getin about $100, ,000, 900 of bonds.
l was further informed that in all prOba-
bllity subcommittee will shortly be
formed to examine the claims of the
holders of bonds issued by the Individual
States. The chances were that the
plan of their being assimilated to the
bonds of the Confederacy would be
adopted. 1t is not clearly known who are
the chief holders of Confederate bonds in
England. A small proportion is thought to
be held by English bankers, though GER
tain members of the English aristOcracv
are largely interested. The members of
the syndicate themselves are said to be
the owners of a very small amount of
bonds. If successful. however, they
would reap a vast reward They expect
to get in 100000, 900, and if they can sue
ceed IN obtaining twelve per cent. a set
tlement with the bondholders would leave
three and half per cent, or 50, 900, 900 as
the shars of the company.
Altogether the scheme is a most impu-
dent one. 1t is amusing to hear financial
people in England talking about Ameri-
can wild cat schemes, supposed to be in
digenOus to the United States, although
America cannot hold candle to some of
the schemes put on the English market.
They refuse to touch a good, honest in
vestment, but when there is some wild
goose thing like this they grasp at it.
The entire scheme is one of the most i'm
pertinent ever planned, and the idea of
pnttlng an embargo ON Southern enter
prises, though subtle, is scarcely better
than an attempt at wholesale blackmail.