The Dallas daily herald. [volume] (Dallas, Tex.) 1873-1887, 1885-05-04

A Eystery Explained.
COLUMBIA, April 2O.-Tho Charleston
News and Courier OF April % contains
tho following: Tho unsolvod enigma OF
this decade has been the motive of in.
ducing the demand IN England for GER
tain confederate bonds. Conjsctures
havo been numerous, but none pointed
to logical reason Tor tho fact that
worthless confederate obligations, which
had Tor Is years filed dusty chests and
trunks in Europe and in tho south, sud.
denly commanded from close-monthed
spectators a price 0qualing several per-
cantum OF their par value. Preposter-
GUS stories ~ to the cause Of the demand
have been circulated only to leave the
public unsatisiled, and curious Tor q
logical solution of the problem.
| There has been no explanation of
the reason for the cessation
of the demand, and The
ultimate disposition OF tho bonds pur-
chased and sent TO London has not been
authoritatiyely announced. Aftor a
yast deal OF inquiry AVID conjecture tho
MISTER remains as IL began--a tantaliz
ing mystery.
Chance has just afforded me an ex-
PLANTATION of the whole businessman OK
PLANTATION which | can announce with
confidence, because IL is complete aud
logical, aud consistent with every phase
OF the bond speculation, but chiefly be-
cause II comes authoritatiVely from one
OF tho few men OF the United States,
who have been from the first cosnizant
a nd ~ liz .
sO-called "crRze." He has hsen closely
connected with the bond operations, but
now that they have been completed he
gives me the facts, with the understand
ing that his namo be withheld from
! publication. Judah Z. Benjamin, aecre.
tary of state OF the cOufaderacy from
1867 until its collapse, was the origi-
nator OF the plan by which demand
was created for the bonds, and TO his
shrewdness Is attributable tho complete
success Of the project.
To begin at tho beginning. Severa
departments Of the confederate govern.
ment-such as the ordnance, quarter
masters and medical purveyor's-had
special iunds deposited with European
bankers for the purchase of supplies,
which could only be- obtained IN Eu.
rope. This was well known, and the
members of these departments and their
agents. were also known, 40 that when
the United States government succeed.
cd to the assets OF the confederacy the
remnants OF these FUNDS were slirren.
dered TO IL by those who held them,
There was one fund, however, which
escaped surrender because OF the mva-
terry enveloping II, and this was the 40
oret service fund of the Confederate
department. OF State, At different
times the confederate congress, in se-
orot session, voted large sums for so.
cret service, the intention be,
ing, OF course. To apply this
money in foreign countries, so
rs to aid the confaderacv
and embarrass It's adversary. The fnnd
was used to influence officials of other
governments In some degree 10 aid The
State Department In its efforts 10 secure
recognition for the Confederate States,
ana occasionally TO assist other depart
meets by smoothing tho way for pur-
chaues which were difficult. The mem.
hera OF the secret service were not
known 10 the public. have been shown
8 list OF the principal ones, but am not
permitted to print II. Several wsrs yerv
prominent men identified with Confed-
crate diplomacy, aud bore high charsc-
tors. Others had never heard of before.
London and Paris were the chief points
oi secret service activity, Thers was
an agentAt brownsville, Texas, ON the
Mexican border. The principal de.
Posits oil secret service money were In
London and Paris banks. The funds
were placed 10 the credit OF eiti-
zens Of Great Britain and France, who
we're iriendly to the south. The under
standing with them was that thev
would assume no responsibility, but
would honor drafts to tho extent OF the
money In bank. AT the close OF the war
there were large unexp0nded balances
OF secret service money TO the credit of
those parties. There was ono account
OF 100000, which seems TO have boen
overdrawn, as against IL was charged
t2l2,OOO. The balance OF different dc.
posits ~ the close of the war were rs fol-
lows; One OF less than 630O, one of $780,.
goo, one OF e5O,OOo, and OF f50s. Then
tnero WAS one OF 5000, one
and a huge one Of $4,000. Ts ,'t sotsI
balance due the confederate government
at the time of its fall was 81, 0S0, 900.
The men who had this money depos-
tied in their names were honest. They
ala not make way with the assets OF
the dead confederacy, but they were
puzzled TO know what 10 do with them.
Mr.. Benjamin, as secretary OF state OF
the confederacy, knew these agents, aud
during his residence In England con-
suited them as TO the disposition Of the
money. 10 was agreed that IL should
not be surrendered 10 the United States.
The question was then, how TO disburse
the money so as TO benefit those best en-
Titled TO IL. 1t was concluded that the
people who had given their means TO tho
coniederacy for its bonds were entitled
TO these (the confederate's) assets.
me aggregate OF the funds was ascer-
tanned aud 4 calculation was made as 10
now Tar IL would go In paving the in
terest on tho ids; because, of courue.
" was imprscticabla to declare divi-
uend on the principal. Publicity was
70 DC avoided secrecy was indispensable.
AZ was decided TO pag on the unhonored
coupons, beginning with those last due
ny the confederacy durinRits existence.
These woro tho coupons falling dine Jan
uary 1, 1865. Then the balsilee WAS In
oc applied TO the payment OF the next
coupons falling due. Tho bonds were
advertised for. To cover the real object
OF the movement, IL was limited that the
bonds were 20 be- held by speoulators.
ana that suit was 10 be instituted
against the United States for the'-
payment This amusing idea gaineu
great prevalence. The bonds were
read,l Y obtained, and all OF tho Janu-
airy, 1885, coupons were paid, simply by
the purchase OF tbs bonds for the
amount Of these coupons and their rub
ntuuout 0ortruCfian. Thu ratnalr "A - =