The Indiana State sentinel. [volume] (Indianapolis) 1868-1895, 1885-05-06
AN EXPLANATIoN.

The Speculation in Confederate BOnds-A
Mystery Of millions.
Correspondence of south Carolina News ana
Courier
Several departments OF the Confederate
Government-such as the Ordinances, Quarter.
masters and Medical PuTvsyors-had special
funds deposited with Eoropsan bankers for
the purchase of supplies which could onlv
be obtained in Europe. This was well
known, and the members of these depart
ments and their agents were also
Government succeeded to the assets
of the ConfederacY the remnants of these
funds were surrendered 10 it by those who
held them. There was one fund, however,
which escaped surrender, because of the
mystery enveJoping 1t, and this was the
secret service fund OF the Confederate De-
paTtment OF State. AT different times the
Confedera rate Congress, in secret session, voted
large sums Tor secret service, the intention
being, OF course, to apply the money to
foreign countries, so as to aid the Confed-
erscy 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 70 Sc
cure recognition for the Confederate
States and occasion ally to assist other
departments by smoothing the way for Dur
cbases which were difficult. The members
of the Secret Service were not known to the
public. have been shown a list Of the prin-
cipal ones, but am not permitted TO print it.
Several were very prominent men, identified
with Confederate diplomacy, and bore high
characters. Others l had never heard of be
fore. London and Paris were the chief
poius of secre. service activity. There was
BIT sgeut at Brownsville. Tex, on the Mex.
IcaD border The principal deposits Of secret
service money wers IN London and Paris
baBks The funds were placed to tho
ID II .tf IT 80 -
France who were friendly to the So1sh. The
understanding WITH them was that they
should assume no responsibility. but would
honor drafts 10 the extent OF the money in
bank. At The close Of the war there wore
large uDexpepded balances Of secret service
money to the credit at ihese parties Thsre
was ore account OF 5000 OCO, which seems to
have been ovs.drswD, Sgeinst il was
charged S242 000 Tire balances of different
deposits st the close o, the war vera "a fol.
lows: One nf less than $500 one of 1900
Geo, one of $50 COO, and one Of $500 Then
there uss ore of $1,000 one Of $4,000,
ore of $45s COO, and huge one of s. 7l9 600.
The total balance due the Confederate Gov.
eminent at the tine of its fall was s., ESQ.,
0C0.
The men who bed this money deposited in
tbeir names were honest They did not
make way with the assets Of the dead Con-
federscy, but they were puzzled 10 know
what 10 do with them. Mr. Benz amin. as
Secretary of State Of the Confederacy, knew
these agents, and during his residences in
England consulted with them ss TO the dis
position of the money. 1t vas agreed that it
should not be surrendered to the United
States. This question was then, how to dis.
burse the money 81 as best to benefit those
entitled to il. 1t wss concluded that the
people who had given their means to the
Confederacy for its bonds were entitled to
these (tbe Confederacy's) assets.
81 . In L. .kasvx AL
and a calculstlon was made to how
far 1t would go in paying the in terest on the
bonds because, OF cOurfe it was imprs oticable
to declare dividend on the principal. Pub.
lieity wss to be avoided. Secrecy was in
dispeassble. 1t was decided 70 pay off the
unhonored coupons, beginning with those
last due by the CoDfederacy during its ex-
istence. These were the coupons falling
due January l, 1885. Then the balance was
10 be applied to the payment of the next
coupons falling due. The bonks
were advertised for. To cover
the real object of the movement il
was limited that the bonds were to be hsld by
speculators, and that suit was to be insti-
tuted against the United States for their pay
ment. This amusing idea gained grsst prev
aence. The bonds were 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-
maiDder OF the fund was absorbed by
the partial payment Of the coupons next
due in the order of their presents-
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.. Benjamin's
master mind conceived it and secured its
ful6llment. He handled none of the money,
and none was paid to his order. Nobody in
the secret made money out of it. The pur-
pose wss simply to return to the creditors of
the dead Confederscy part of their money.
The whole transaction is now closed, as
all the Confederate assets have been dis
bursed. Confederate bonds are no longer in
demand.
Did you look at the sun, yesterday,