The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1892-12-25

This could only be done by transferring 1t
to one of the modern inventions Of finance,
a syndicate. Grace became possessed with
the ambition to finance the debt of the
nation. The Rothschilds had done it in
Europe. Jay Cooke and a few other bank
ers had succeeded in doing it in the United
States. But in these cases the govern
ments with which they dealt were pos
sessed of financial standing and high
credit. Grace's undertaking involved the
financing of the debt of nation which
had been compelled to repudiate its obli-
cations for many years, and which was
thereby discredited by the capitalists of
the world.
He, therefore, abandoned for time his
purpose of completing the Oroya railroad
on his own account, and gave himself up
to this new and mighty undertaking.
When he first appeared in London the
financiers thought him visionary. They
had no faith in the ability OF any one to
finance these obligations, and for two or
three years the work of this young man
for he was then barely 40-was confined
mainly to obtaining the ears of the great
financiers so that he might also gain their
confidence. He drew almost entirely upon
his own resources for his expenses, which
were very heavy. He had two influences
to conquer, for he had not only to gain the
confidence of men who held the obiiga-
tons of a nation, amounting to over $780,
1000, but he had also either to persuade
or compel the Peruvian government to do
those things which were necessary in order
to reach an agreement.
After two or three years Mr. Grace be-
gan to get the ear of the capitalists. They
were convinced TO some extent by his en-
ergy and persistence. But while on a
visit to his brother, who was then MAYOR
of New York city, Mr.. Grace met with an
accident which caused him serious embar-
rassment. He fell and broke his leg, and
of course was compelled to lie for some
time upon his bed. Mayor Grace had per-
feet confidence in his brothers. ability, but
he did not have so much faith in the will
ingness either of the bondholders or of
Peru to do these things which were neces-
sary. He was still in partnership with
his brother Michael.
side, and he asked Michael how much he
had spent in his efforts thus far. Michael
Grace told him; it was a large sum. one
that would have represented a handsome
fortune for most men.
How much do you expect to expsnd ?"
the mayor asked.
Every dollar that is necessary In order
to accomplish this thing
How much do you think is neces-
sarv?"
Michael Grace answered, naming con-
siderable sum of money, and the mayor
then said: "If after you have expended
this and YOU do not succeed YOU will then
give it up, will advance dollar for every
dollar that you expend." Michael Grace
extended his hand, his brother took it,
and thus this pledge was silently sealed by
n fraternal hand pressure.
After Michael Grace'S recovery he re-
turned TO London and was some three
years ago able TO formulate plan involv-
ing the financing OF nation. He had
gradually got some of the great capitalists
OF England interested, at least 10 the ex-
tent CT giving careful consideration to his
financial schemes. 1t seemed likely that
there might be more difficulty in bringing
the Peruvian congress into harmony with
the proposed scheme 4 good many of
the politicians Of that country were noto-
rlousiy corrupt, ami II was feared that
some of these men would demand price
for their support. The Peruvian people
were IN favor of any reasonable plan
which promised to lift the burden of debt
ana relieve the country from the stagna-
ton W alch prevailed. and Mr.. Grace took
advantage of this sentiment TO create a
public opinion which would be too great
tor the con gress OF Peru TO ignore
The plan proposed by Mr.. Grace was the
formation OF an incorporated company
with capital Of many millions of dollars.
"Alch should issue It's stock and offer 10
exchange that stock for the bonds reprc-
senting FeEu's debt. The majority OF
these bonds were held in England. some
IN Holland and Belgium and considera-
he number in France. The aggregate OF
them Was about $50, 0TU. 600 OF course
these stockholders expected to receive
something a. a consideration for taking
up these bonds and giving in exchange
toC them the stock Of a responsible cor
p0ratlon like the one proposed. and they
looked Tor that consideration 10 Peru. If
that nation was going TO have its debt
cancelled. II, OF course. expected TO give
something in consideration for the ser
VICE. " bat WAS II 10 giveP That was the
question which those who thought of TAX
Ing the stock OF the company asked of
NJ Grace
He said he believed that Peru would
grant 10 the company certain franchises
which IN the aggregate would be worth
far more than the debt, which would en-
20ic the stockholders 10 extinguish this
debt out Of the rvOnts and 10 leave a hand
some surplus besides paying lat dividends.
tie proposed that Peru should turn over
10 THIS company al the national fran
ch}Ses IN the railway systems of Peru.
and with some trla3ng exec 1ti0ns the rail-
Ways of Peru were controlled nv the GOV
eminent lie also said that Peru would
grant franchises to- the workings Of all