The Indianapolis sentinel. [volume] (Indianapolis, Ind.) 1880-1904, 1885-05-02

The Speculation In Confederate Bonds-A
Mystery of Millions.

Mystery of Millions.
Correspondence OF South Carolina News and
Courier.
Several departments of the Confederate
Government-such as the Ordinances, Quarter.
masters and Medical Pnrveyor's-bsd special
funds deposited with European bankers for
the purchase OF supplies, which could onlv
be obtained in Europe This was we'll
known, and the members OF these depart
ments and their SCENTS were also
known, so that when the United States
Government succeeded to tina assets
of the Cenfederacy the remnants of these
funds were surrendered TO it by those who
held them. There was one fund, however
which escaped surrender, because Of the
mystery enveloping it, and this was the
secret service fund OF the Confederate De-
psTtment Of State. at different times the
Confederate Congress, in secret session. voted
large sums for secret service, the intention
being, OF course, TO apply the money to
foreign countries, so as TO aid the Confed-
eracy and embarrass its adversary. The
fund was used to influence officials OF other
Governments in some degree TO aid the
State Department in its efforts to Sc
cure recognition for the Confederate
States, and occasionally to assist other
departments by smoothing the way for pur-
cheses which were difficult The members
public. have been shown list of the prin-
cipsl ones, but am not permitted to print it
Several were very prominent men, identified
with Confederate diplomacy, and bore high
characters. Others bad never heard OF be-
fore. London and Paris were the chief
poiDs of secret service activity. There was
an agent at Brownsville. Tex, on the Mex
lean border. The principal deposits otsscret
service money were in London and Paris
banks. The funds were plscs6 to the
credit OF citizens OF Great Britain and
France who wers frien dly to the SOUTH The
understanding with them was that they
should assume no responsibility, but would
honor drafts TO the extent of the money in
bank. At the close of the war there were
large uDexpeDded balances of secret service
money to the credit of these parties, There
was one account of 5000 0o0, which seems to
have been overdrawn, as against it
charged S242 600. TIE balances of different
deposits at the close OF the war were es fol-
lows: One of less than 900 one of E309-
COO, enc OF go, COO. and one Of $500 Then
there was ore OF 50 000 one of Sl60 coo,
ore of $45S oOO and huge one of So 10. coo.
The total balance due the Confederate Gov.
eminent at the time of its fall was s. 0S0,.
OOO.
The men WHO bad this monev deposited in
their names were honest They did not
make way with the assets Of the dead Con-
federscy, but they were puzzled TO know
Secretary of State Of the Confederscy, knew
these agents, and during his residence in
EDgland consulted with them SIS to the dis.
position of the money. 1t was agreed that it
should not be surrendered to thu United
States. This question was then, how to dis
burse the money 50 as best to benefit those
entitled to it. Ii Was concluded that the
people who had given their means to the
Confederacy for its bonds were entitled TO
these (ibe Confederacy's) assets.
The aggregate of the funds was sscertsined
and a calculstlon was made as to how
far II would go in paying the interest on the
bonds, because, OF c0UTfe il was impracticable
to declare dividend on the principal. Pub
licity was 10 be avoided. Secrecy was in
dspeasable. It was decided 10 pay off the
unhonored coupons, beginning with those
last due by the Confedelacy during its ex-
istence. These were the coupons falling
due January l, 1885. Then the balance was
TO be applied to the payment of the next
coupons falling due. The bonks
were advertised for. To cover
the real object of the movement it
was hin ted that the bonds were to be held by
spectators, and that suit was to be insti-
tuted against the United States for their pay
ment. This amusing idea gained great prev
alence. The bonds we're readily Obtained,
and all of the January, 1865, coupons were
paid, simply by the purchase OF the bonds
for the amount of these coupons and
their subsequent destruction. The re-
msinder of the fund was absorbed by
the partial payment of the coupons next
due, in the order of their presenta-
ton. Very few of the men who dealt
in the bonds knew what was the object
of the purchase. The circle managing the
scheme was quite small. Mr.. Ben amin's
master mind conceived it and secured its
fulfllment. lie handled none of the money,
and none was paid to his order. Nobody in
the secret made money out of it. The pur-
pose was simply to return 10 the creditors of
the dead Confederacy part OF their money.
The whole transaction is now closed, as
all the onfeaers.e assets have been dis
bursed. Confederate bonds are no longer in
demand.