The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1883-07-31
THE coNrEDERATE BOND FARCE.
Another Atscmpt In England 70 Obtain Their
Receenitioa-A Syndicate Established
Credit to be withheld from the southern
ssases-Foreins Settlement BY Black
mailing Process.

says:
The terms on which the bondholders are
TO be dealt with are rs follows: They de-
posit their bonds for period OF five years,
receiving a scrip-certificate in exchange.
II after five years nothing has been accom-
plished. the holders have the right 10 with
draw their bonds on returning the certifi-
cate. The bondholders are to have the
first per cent. obtained in settlement and
one hall Of the amount obtained above
this. the other bali to 20 TO the syndicate
10 cover expenses and as reward for their
labors. The syndicate expect to be able to
secure a compromise. At least they say
they will be satisfied with IL to 10 per
cent.
The syndicate, acting under the super
vision OF trustees. have planned campaign
which presents some novel features. They
have discarded their old plans, and take
no notice OF the former rlmors to the e1ec'
that large amounts OF money remain on de-
posit IN the English banks belonging TO the
Sieftinct Confectionery. There was, for in.
stance, a rlImor that the Bank OF England
held $4,000, 900, and that some millions
were In the hands OF certain shipbuilders.
Their chief hines OF arguments are as
follows:
capacity 70 contract loans in 1868, because
the different States OF the Union, and con-
seauently the southern States, always pos
sess the right TO contract debts. This they
did in the present case through special at
forneys instead Of through the organs OF
each particular State. Therefore, IL it be
denied that the southern States were
a confederation, and that their organs
ever had a legal existence, as those OF
n State. IL must be admitted, in spite OF this
denial. that in raising the loan in question
the said organs acted as the attorneys OF
the confederation. The fact that the loans
were raised under the name OF the Con-
federate States OF America is no reason
whatever for dcubting the legal existence
of the debts in question nor for asserting
that the southern States are not bound to
pay the same.
Second. The debtor, whether an indi-
vidual, State, or corporation, cannot
liberate himself from an obligation with
out the consent of the creditor.
Third. The liabilities contracted by the
Confederacy did not lose their binding
power either
A. In consequence OF the dissolution OF
the Southern Confederacy: or
Ii. BY DEGREES incorporated in the Con-
stitution OF individual southern States;
Or
&. Even by virtue OF the fourteenth
amendment OF the Constitution.
Fourth. That even granting, for the sake
OF argument, that the fourteenth amend
ment annuls the Indebtedness, yet there are
equitable reasons OF private and interna-
tional law for claiming that the United
States should set aside the fourteenth
amendment as beng repugnant to and In
direct conflict with other articles of the Con-
stitution, and thus an enactment that pro-
hibits the payment OF debts contracted by
the southern States.
The syndicate, armed with these legal
opinions. believe that they can assert and
maintain their legal rights to claim settle
ment from the separate States that formed
the Confederacy. But the syndicate seem
inclined to hold these alleged legal rights
only as reserve. The great lever which
they propose TO bring to bear is a kind OF
financial pressure, something like that ap-
piled to Greece a few years ago, when a
compromise was arrived at respecting old
repudiated loans, and Greece was thence
toward admitted freely to the European
markets. This is the method proposed to
be adopted by the syndicate in relation to
the Confederate loans.
They have received the adherence Of the
principal bankers Of London, Paris, Ans
terdam. and Frankfort, who hold Confede-
rate bonds, and hope by securing the soli-
darity OF the bonds to place them in such
a position as to be constant menace to the
credit Of the southern States in Europe un-
I'll some arrangement has been reached. /
am informed that the Stock Exchange is
Aner1mQnt ~
by they agree among themselves that they
will only deal in these Confederate certifi-
Gates and not i'm Confederate bonds, and
the syndicate expect that the result Of this
will he more rapid deposit OF the bonds
i'm exchange for certificates and scrip.
A gentleman well acquainted with the
intentions of the syndicate said to me yes
terday: "The syndicate hope to hold this
great mass Of bonds as a constant cloud
against the credit OF the South and in oppO-
sition to any enterprise, no matter what it
IL, that comes from the southern States.
They say that already in this market, for
years past, whenever southern enterprise
has made its appearance this dirty mass Of
discredited securities has been thrust in the
face OF the South, and In such a way,
though not then in a consolidated form as
now, as to have been Il constant and terri
BILE obstacle TO southern advancement.
Now, they say, the obstacle will be more
heavily felt than before.
The telegram, after enforcing the idea
that no English capitalists will help south
ern enterprises, continues:
This will give you an idea OF the syndi-
Gates plan Of campaign, which Is simply
one OF financial pressure on the southern
States by attempting to close the European
money markets to southern enterprises.
am told that the syndicate has been long
time In correspondence with prominent
men I'm the South, the names OF whom were
not told me. All, without an exception
agreed that some composition should be
effected at a low figure. The syndicate
also entertain some sentimental homes
of assistance on the part of the United
States Government. They have a pro.
ject OF getting the southern States
TO petition the United States Government
to transfer TO the bondholders the
Incorporated balance OF the Alabams
award and OF the large amount Of money
received from cotton seizures In the South
during the war. II is thought by them
that Sl0,00O.0O0 are lying idle In the Trea.
sury at Washington. This would be s1S..
100000 or Sl4,000,00 or about one third
OF the amount they would be satisfied with
Is settlement The amount OF the Con.
iederate debt Is said to be $500, 900, 900. IL
held mostly IN Europe. How much OF
this the syndicate will be able to gather IN
remains TO be seen. At any rate. the syn
\ dictate. II successful, will reap vast re.
ward for their outlay.
since writing the above l have TODAY
seen the manager OF the National Safe De-
posit Company, who confirms my state.
ment about the agreement on the Stock
Exchange 10 deal only in Confederate Ger.
tincates OF the Deposit Company. Accord.
my 10 tnls gentleman the company expect
10 get in about 500, 00o, 900 Of bonds I