Year: 1868

LOMBARD STREET. March ], 1868.
TO THE EDITOR OF THE HERALD:-


SIR had the honor Of addressing You, as well as
other leaders Of public opinion In the United States,
the 2Sth utimo on behalf OF our constituents on
the subject OF the Alabama claims and the cotton
loan.


trust my letter will be received In the friendly
spirit In which It was written for the adjustment OF
both causes of grievance will rebound to the credit
OF both countries, and 1t would give us and our
constituents far greater pleasure TO petition the
House OF Commons to do equity to the citizens Of
America, because they had done US equity, than to
take a course directly the reverse.


Allow me to point out to those who guide Ameri-
can politics how short-sghted has been the policy OF
those who have advocated the reputation Of the cot
ton loan, and mixed up our gracious Queens procla
nation OF neutrality with the damages done by the
escape OF the Alabama. In the one instance they
have laid themselves open to the retort that they
other they have rendered impossible for ar British
Minister TO entertain the question OF arbitration on
the basis insisted on by Mr.. seward.


But this Is not the whole extent Of the mischief
that has done; for had the southern States been
would have stood high, and they might have raised
new loans here their joint responsibility and there
by have obtained the capital OF which they 40 greatly


Allow me to inform you, from practical experience
what has been the result Of this forced reputation.
When the Wilmington and Manchester Railway
wished to borrow EGO 600 for the equipment OF their
line they oiered to take In part payment Con-
federate cotton bonds at the price On twenty-five ex
the overdue Interests but although the cotton bonds
were only n0minaly seven per cent In the market
no one could be found to accept this
orfer, because they feared that any ad.
vance they made would be ordered likewise
to be forcibly repudiated by the government and
Congress OF the United States. BY the rules OF the
Stock Exchange no Southern State could borrow
money in this country unless 1t first recognized and
paid It's proportion Of the cotton loan.


Allow me further to observe that the credit Of the
North suffers by the shortsighted policy Of forced
pudiation. Five-twenty bonds would rule much high.
er in Europe II the cotton loan arranged There
Is always vague dread that the holders OF yetwenty
bonds might be subjected, by o reaction Of public
opinion In America, To have their bonds repudated
for having advanced their money In order To keep up
monopoly In the Eastern States to the detriment OF
the free trade interests In the South and West.


Reputation is wonderfully elastic In It's principles
OF application In country so Mosaic In It's institu-
t0ns az America, and what may one day be sauce for
the geese who lent the South money their promise
TO deliver them cotton at 3d. per pound in exchange
lor tnelr bonds SIX months after the termination OF
the war may on another become sauce TO the ganders
who lent the North money under the idea that they
were to be repaid their principal and interest In gold
for aiding to crush the South.


enclose you an article from the MoneD Market