The Abbeville press and banner. [volume] (Abbeville, S.C.) 1869-1924, 1885-04-29
. MYSTERY EXPLAINED.
THE SECRET OF THE CONFEDERATE BOND
CRAZE.
Mr.. RcnjaMin's Scheme for Dividing
the Secret Service Balances Among
the Creditors Of the COnfaderacy...
Why the RumOr Of n Suit Against
the United States waS Set AhOat.
(Neu.S and CO1f1'icr.)

the Creditors Of the COnfaderacy...
Why the RumOr Of n Suit Against
the United States was Set AHoat.
(News and C0uricr.)
COLUMBIA. April M.-Thc unsolvcd enigma
Of this dec"le has been the motive OF in
ducing the demand IN England for certain
Confederate bonds. ConIcclurcs hive been
Humorous, but one pointed to n logical fra,
son for the fuct that worthless Confederate OBJ
legations, which had for fifteen years filled
dusty chests and trunks In Europe and In the
South, suddenly commanded from close.
moutliCd spcculatOrsa price cQualIing several
per centum OF their par value. PrcpOsterot,s
stories rs to tho cause OF the dcnrand have
been circulated only to leave the public un-
satisfied, and curious Tor IL logical solution Of
the problem. There has been no explanation
of the reason for the cessation Of the demand,
and the ultimate disposition OF the bonds
purchased and sent to London hns not been
luthoritatively announced. After q vast
deal of Inquiry and conjecture the matter re-
mains rs IL bcgan-n tantallZing mystery.
Chance has Just afforded inc an explanation
which | can announce with confidence, be-
CAUSE IL Is complete and logical md COIL
sistcnt with every phase Of the bond spcculu.
ton, but chiefly 6crausc It comes nuthOrltn.
States who have been from the first cognIZant
Of ttc sO.callcd ''craze." lie has been closely
connected with the bond operations, but now
that they have been completed he gives me
inc 1hClSt WIFI Iuc UNDERSTANDING tlliI uls
name be withheld from publication. Judah
P. Benjamin, secretary Of State OF the COnled.
crncy from 1862 until It's collapse, wns the
originator Of the plan by which y demand
was created for the bonds, and to his shrewd-
ness Is attributable the compile SUCCESS OF the
project.
10 begin Mt The beginning: Several depart
mcnts Of the Confederate Govrrnment-such
cal pu~rveyor's-had special funds deposited
with European bankers for the purchase OF
supplies. which conld only be obtained In Eu-
rope. This was well known, and the members
also known, so TINT when the United States
Government succeeded to the assets of the
COntcdcracy the remnants OF these funds
were surrendered TO IT, by those who held
escaped surrender because Of the mystery en-.
vclOplng 1t. and this was the secret service
fund Of the Confederate department OF State.
AT different times the Confederate Congress,
IN secret session, voted large sums for secret
service, the Intention being. of course. to APP
ply this money In foreign counties so as to
aid the ~Confcderncy and cinbarrass It's nd.
vcrsary. The fund was used to influence
gree TO aid the State department In It's efforts
to secure recognition for the Confederate
States, md occasionally to assist other de.
partmcnts by smoothing the way for purchas'
secret service were not known to the public.
I have been shown II list Of the principal
ones, but am not permitted 10 print II. Sew.
eral were very, prominent men Identified
with Confederate diplomacy, and bore high
characters. Others / had never heard OF be-
fore. ..London and Paris were the chief points
Of secret service activity. There WIS mn
agent at Browns, lilo, Texas, on the Mexican
vice money were In London and Paris bnnks
The funds were placed TO the credit OF cltl'
zrnS of Great Britain and France, who were
friendly 10 the South. The understanding
responsibility, hut would honor drafts to
the extent of the money In bank. AT the
close of the war there were largo unexpended
balances of secret service money TO the credit
nine hundred thousand dollars, which seems
to have been ovcrdrawn, as against 1t was
charged two hundred and fOrty-two thousand
pounds sterling. The balances OF different
lows: One Of less than three hundred pounds
one Of three hundred and nine thousand
/ hounds, one of fifty thousand pounds md one
OF five hundred pounds. Then there wuB one
Of two thousand dollars, one OF a hun
drcd thousand dollars, one Of four hundred
and f:ty- thousand dollars, and q huge
one OF three million. seven hundred and
nineteen thousand dollars. The total bal
| ancc due the confederate Government ut the
lime OF It's fall was about five million and
eighty thousand dollars.
The men who hud this money deposited in
their name were honest. They lid not make
WAY WIFI TIE iSStlS vi IIlC uctku SOI3cuCIhCS,
hut they were puzzled to K what to do witt
them. Mr.. Benjamin. as secretary Of State
OF the Confcderacy, knew these agents, and
| during his residence In England consulted
with them as to the disposition Of the money,
It was agreed that 1t should not be surrender
ell to the United States. The question was
Then, row 10 dishurSe the money so rs best fc
benefit those entitled to II. II was concluded
that the People who had given their mems
to the Cnnfctirrncy for It's bonds were entitled
TO these Uhc COnfcticracy'S) assets.
The aggregate of the funds was ascertaincd,
and u calculation was made NJ TO how far u
would 20 In paying the Interest on the bonds,
because, OF course, it was impracticabic to
declare n dividend on the principal. Pub
licIty was to be avoided. Secrecy was iudis.
pcnslble. 1t was decided 10 pay OF the TN.
| hOnOrcd coupons. beginning with those last
due hy tho Confedcracy during its existence
These were the coupons falling due January
| LIST. 1861. Then the balance was to be applied
to the Payment of the next coupons billing
due. The bonds were advertised for. To GOV
or the rrHl object of the movement Vt was
limited that the bonds were to be held by
spectators, aud that suit was to be instituted
against the United States for their payment
This amusing idea gained great prevalence
The bonds were readily obtained. and all Of
the January. lAE5, coupons were paid, simply
by the purchase of the bonds for the amount
OF these coupons and their subsequent
destruction. The reminder OF the fund wa
absorbed by the partial payment OF the cou
pOns next due, In the order Of their prcsen1a'
ton. Very few of the men who dealt In The
bonds knew what was the object Of the pur
chase. The circle managing The scheme was
quite small. Mr.. Benjalnin's master mine
cnncrivcd 1t ami secured Its fulGlmcnt. nc
handled none of tho money and none wa!
paid to his order. Nobody In the secret made
money ont of 1t. The purpose was simply. tt
| return to the creditors Of the dead Confcdcr'
acy us part Of their money. -.
The whole transaction Is now closed, ms MI
the Confederate assets have been disbIrsed
! Confederate bonds are no longer In demand
The public can understand now why bond:
Iack!n. ccrtl!n.coupons were worthless nnd
| unstable.
This is n correct solution of one Of the mos
! interesting puzzles of the age. II MI. Bcnju
min had lived 1t would not have been given
to the public. His death and the completion
of the bond transactions frees the giver of lht
! Information from the necessity Of keeping
the secret further. n. MA