The National tribune., 1883-08-09

might De aDle 10 sell out az pfonV, just as
they had frequently done in the case of
wildcat railway securities-and such as
happened to have any of the worthless paper
in their possession made haste to get rid of
it. By way of further explanation, too, it
was stated at one time in the newspapers
that there was still remaining to the credit
OF the Confederate government in the Bank
of England some S8,0O0,0OO, and that it was
with a view of securing this money that
Confederate bonds were being bought. In
vestigation, however, showed that there was
no such sum on deposit, and this explana-
ton, like the other, of course had to be re-
jeeted. 1t now appears from inquiries in
stituted by the New York Herald that q
syndicate has been actually formed in Eng
land, with Lord Penzance as its banker,
and board of trustees among whom are
said to be two members of the British Par
lament, for the purpose of securing control
of all Confederate bonds and enforcing their
payment Some $4,000 has been subscrib-
ed, it is said, for preliminary expenses, and
one of the vaults of the National Safe De-
posit Company, at New York, has been Sc
lected as the receptacle for the bonds, which
are to be deposited there as fast as obtained.
The price paid for the bonds already pur-
chased has varied from one dollar TO six dol
lars per thousand of face value, and if it is
true that bonds to the face value of $780,
000,000 have already been received by the
agent of the syndicate, they must represent
an investment of somewhere in the neigh
borhood OF 100000 good money. Precisely
how large an aElountof Confederate bonds are
in existence nobody knows. An ex-Confed-
crate officer estimates it at 500 100000, but
we notice that Richmond lawyer, who
seems to be well posted, declares that the
syndicate need rot expect to see bottom I'M
til it shall have received S., 0O0,00e,0U0, and
may not reach it even then, should it prove,
as he suspects, that there are a large number
of counterfeits in existence. 1t is we'll
known says General Butler, too, that the
Confederate bonds were very carelessly en-
grayed, and largely counterfeited during the
war, and at this day no man can tell which
sre the counterfeits and which are the bona
fde bonds"
1t is evident, therefore, granting the prac-
liability Of the scheme to get coatrol OF
them. that they viii cost the syndicate a
great deal more than the members antici-
pate. The real point of interest, however,
in the whole matter concerns the manner in
which the syndicate hopes to enforce the
payment of the bonds. Ii is said that they
are willing to compromise at twelve cents
on tho dollas, and that if the States which
constituted the Southern Confederacy refuse
to assume the obligation, the London capt
talists viii refuse to lend money to Southern
enterprises. If it is upon this threat only
that they rely to enforce the re-assumption
by the Southern States of the obligation to
redeem these securities, they are likely to
be sadly disappointed, for everybody knows
that capitalists, whether foreign or Amcri-
can, can always be prevailed upon to invest
their money where it win yield the largest
interest, and can never under any circum-
stances, or from any consideration of gratitude
or friendship. be induced to invest it where il
win not be productive. The Southern peo-
pie. we take il, are quite as well aware that
this is the case as those of any other section
of the country. But, aside from This fact
even if there were any moral obligation on
the part of the States lately in rebellion to
assume this liability, so thoroughly are they
imbued with reputation ideas-as ia Vir-
ginia, for instanee-that they would never
consent to assume any new burden If pub
lie sentiment in that section is opposed tC
the payment Of strictly State debts, con
tracted for the construction Of public works
from which they have derived a definite and
certain benefit it is folly to suppose that ii
would favor the recognition Of debt con.
tracted by the Confederate government, and
not by the States themselves, and by
which they never benefited in the slight
est But the fact of the matter is, thai
there is no moral obligation resting upor
the Southern States TO pay these bonds
The government which issued them never
had legal status either in this country OF
abroad; it persisted, leaving neither heir.
nor assets. and, by the terms Of the four
teenth amendment to the Constitution o.
the United States, the payment of the bonds
which it issued is distinctly prohibited
Furthermore, by the terms of their issue
they were not to be payable until a certain
time had elapsed after treaty of peace be.
tween the Confederate States and The United
States had been made, ana thai treaty, as
We know, was, happily, never coasanl mated
To sum up, It may thgn he said First
that tie bonds have rs ys.l status; second
tfat there is no morai oflisation on the
southern States 10 ,fl4y them: and third