The Sunday herald. [volume] (Washington [D.C.]) 1866-1887, 1886-01-24

Pentance, the Hon. Thomas C. Bruce, NJ. r.: John
and Robert Stewart ss as sGsn BEEN s snSnnsS SD
In London TO act as trustees for the Confederate
6ondnolders In view OF solicited action by the
bonds wherever situated, are requested TO send 10
,Nm ,MilIam p Moore, ESQ, care OF Hon. William Full
lsrop Of counsel Is Exchange Place New York
them respectively, giving amounts, dates Of lssue,
and number OF coupons attached to each bond.
Naturally, not little curiosity has been awakened
by this notice. The high character and professional
standing Of the persons named in London shows at
once that there is something In the scheme beyond
mere kite-hylng, and as no fee is required from
those registering, 1t concusvely proved that 1t was
no ordinary operation, which had as It's main pur-
pose the exsction OF small sum of money from
credulous Confederate bond.owners.
Inquiry which was made in london develops this
much: An attempt Is about to be made to realize
something on the bonds mentioned. Two courses
are to be taken. One will be in the shane OF an an.
peal to Congress- as stated. 1t Is needless to saw
that nothing practical can come OF any such step,
and 1t is scarcely credible that such sue-
gestion should be entertained by sensible men for
moment. The other plan, which ,,dp have some
thing tangible in It, is this: 1t is beyond question
that when the collapse OF the Ccnfederacy occurred
there was In England and on the Continent, in the
hands OF agents and bankers, very large sum Of
money and much valuable military material. At
Liege, for instance there were many thousand stand
OF small arms, which had been made to the Confed-
eracy's order and paid for, and were only awaiting
transportation TO some Southern port It is an open
secret that part Of the business OF the Alabama in
French waters at the time OF her capture was to
take on board as many Of these arms as possible,
thus getting them out of France, and by reshipment
at some point known to her commander have them
run into Wilmington, Charleston, Savannah, or
some Texas port. 1t was very late, to be sure, and
the Confederate government was in the direst
straits, but this being the only chance it was TAKEN
What the result was is now history.
The sudden and unexpected failure Of the confed.
crate government left very large quantities Of sup
plies-which had been ordered and paid for, as I
have stated--in the manufacturers hands. They
were usually Of an imperlshabe character, such as
army cloth for uniforms, gunpowder and percussion
caps shoes, etc. The contracts were generally made
in the names Of private nrms though the inspection
Of the manufactured articles before their acceptance
BY ofilcers duly ordered for that duty must have
made the manufacturers aware of the truth Though
there were stringent laws in France, England Bel
GUM, and Holland against this trade, 1t was ex-
tremely profitable, and the government officials
wiDked at 1t. gentleman, graduate Of one OF the
nations war schools, now prominent railway su-
perintendent, was the inspector who examined
many thousand stand Of muskets at great arms
factory In Belgium. He says that there could not
have been less than half million dollars worth
arms ready for shipment on December 90, 1884,, at
this one place, and that they were paid for. This
was not an Isolated instance. One of the shrewdest
and abest OF the Confederate agents told the writer
that there was nearly s7,ooooOO worth Of good mill
tary stores belonging to the Confederate govern
ment which were on hand in four places in Europe
on the first day Of March, 1865, and the same au-
thorty believes that dncluding cash. on deposit un-
der various names-stores, credits land ally there arc
now not less than 900 belonging to somebody
in the hands OF varions English and Continental
manufacturers and bankers. The Hon. Jacob
Thomson, who died last year, was very close.
mouthed in regard to all this, but finding that the
writer possessed some knowledge touching 1t, said
something which corrcborated the statement of the
secret agent mentioned in very curious and cir
cumstantlal manner. l incline to the opinion that
Col. Huse, who lives near West Point, N. ", could
furnish some extremely interesting reading in regard
to the duties and experiences Of the Confederate
government European agents II he were SO disposed
gentleman now resident Of this city, and one of
the officers on board the Merrimac in the famous
naval battle with the Monitor s in possession Of in.
formation which, If 1t were used as 1t could he,
would startle some persons in high places who are
living on what is not theirs.
The syndicate alluded to for come years has had a
careful corps Of experienced persons looking up the
assets Of the Confederacy n various Continental and
English cities. They have discovered enough to
justify them in what they are about to undertake.
I.aaNf f1~.N
these assets could be recovered by the holders of
certain class of Confederate securties-I mean
bonds issued from December, 1868. to January 1865
The counsel referred to takes the ground that any
property Of the Confederate government that can be
found ia liable for the securities which that govern
ment issued. Mr.. j. P. Benjamin gave written
opinion enunciating this view In 1882, and in con.
versation had with the writer In Paris FIVE years
very emphatcally announced this as his opinion and
added: "Some day the Confederate bondholders will
ind this out and try to recover, and will be success
full too II the case is presented strongly as can be
DONE" afterwards learned that he was even then
preparing the brief mentioned.
The best information available places the amount
Of Confederate securities of unquestoned validity
still extant at full value Of $780, OO0 O00 The esti-
mate is rather hgh but granting tn at 1t is 80 largo
quite handsome dividend could be declared II the
assets Of the Confederacy still In existence could be
turned into money and applied to their liquidation.
Perhaps the United States Government may have
something to say about 1t before the final payment is
made.
When the first Confederate loan was offered in
Europe Just after the news of the battle of Manassas
reached London and Paris 1t was much discussed.
N nfaIt IN
English capitalists under the powerful auspices Of
the Rothschilds. This house at first was disposed 10
look faverably upon the matter, but owing to the
steady opposition Of Mr.. August Belmont, then as
now their American agent, and the influence Of Mr..
George Peabody, who possessed the confidence OF
the British financial world to greater extent than
any American banker OF his time, the Rothschilds
very reluctantly declined IT, In spite of this, how
ever the nrst Confederate bonds sold higher In the
London market than those OF the United States by
81 per cent. II will. be remembered that the first
Federal loan only brought about two-thirds OF its
par value, and at 67N Mr.. A. T. Stewart and Mr..
Moses Taylor, OF New York, took $4,000 900 OF them,
the largest individual sales made at that time The
Barngs were about to invest 100000 sterling in
In the Confederate loan OF August 1861 through their
New Orleans agent, Mr.. Z. j. Forstall, when Russell
sturgis, their American partner, and Mr.. Benjamin
ootcns VI nUbtous tuelT tIuhteu representative,
persuaded them to forego their intention. The
history Of that time 1t relates to the financial CON
dition and credit Of the two governments has never
been written, and is as full Of interest as any ro-
nance.
Owing to the influence OF the Hon. John Slidell
the main Continental agency OF the Confederate gov
ernment In matters OF finance was given TO the
house Of Erlanger, in Paris, which they retained
until the Confederate downfall. II has been hlnted
but with how mach accuracy ! do not know, that
there was very large sum Of money In their pos.
session belonging TO the Southern Confederacy when
the end came. The principal Confederate bankers
In Europe were Israelites and were selected by the
Erlangers, who favored those OF their own faith In
this as well as any other respects. The outcome OF
the enterprise In which 30 man; eminent financial
lights are engaged, according TO the paragraph re-
produced at the beginning Of this, will be watched
for with no little interest on this as well as the other
side Of the water.
II ia not generally known that while the Hon. B,
H. Bristow was Secretary Of the Treasury he caused
pretty thorough examination to be made into the
matter OF Confederate assets In Europe, and found
out some things which startled him II this Govern.
ment had pressed the matter there is little doubt bui
that very large sum might have been recovered
II appeared however, that II the United States, In
the role OF administrator upon the estate OF the dead