The Confederate loan in Europe.
The latest English papers contain some further particulars about the Confederate
loan in Europe
, from which it appears that it has met with the fullest success:
[from the London Post city article, March 21.]
In the foreign market the Confederate
loan has been steadily maintained at 41@5 premium.
The amounts of subscription to-day were again exceedingly numerous, not only from London
, but the Continent and the Provinces.
The total amount applied for up to this evening exceeded £10,000,000--affording sufficient evidence that the Continental
hourse, as well as a great portion of the commercial interests of London
, and Liverpool
, recognize the South
, and that in a substantial manner, by subscribing to a loan within two days more than three times the amount asked for.
[from the London news city article, March 20.]
It is a peculiarity of this loan that, though of limited amount, it is to be distributed over so many markets.
In the stock exchange to-day the price which closed yesterday at @3 premium, touched 5@5½ premium, after relapsing to 4@ ½, left off at 4¼@ premium.
By a general understanding among the dealers, all the transactions were to be settled Friday, the 24th of April, before which date the scrip will be ready for issue.
The effect of this arrangement will be that there will be no necessity to call on the stock exchange committee to come to a formal decision with regard to the status on the market of the as yet unrecognized Confederate Government.
[from the Liverpool Post, March 20.]
Only yesterday one of the most eminent of our merchants declared he was commissioned from London
to buy £80,000 Confederate bonds.
Who shall say there is no faith left in the death after this.
There can be no doubt that capitalists are subscribing with their eyes open solely for the benefit of their Southern proteges
in full expectation that this will be only another Greek
loans, to be paid when quite convenient.
It only remains for them to drown self-sacrifices by burning their bonds, when they get them on the flags in Liverpool
, and in the centre of the Royal
If, however, they are seriously entering into this affair as a commercial speculation, we should not be surprised if they did the same thing on some day on the principle of that enlightened gathering of Irishmen who burned the notes of a certain county banker in order to spite him.
[from the London times' city article, March 20.]
* * * As the applications in London
have now amounted to 20,000,000, the sum paid in for deposits in nearly half a million.
Some objection has been taken to a remark made yesterday, that, looking to the loan in any other light than as a cotton transaction, "the majority of our merchants and capitalists would have wished that it had not have been introduced, " since it is said there has rarely been a loan to which the subscriptions have been of a more influential character.--This, however, does not alter the fact that its introduction, if it had been merely a political loan, would have been regretted, because, from the date of the commencement of the war, the sincere desire of this country has been to avoid lending material aid to either of the belligerents.
We have been ready at all times to deal with them impartially as mercantile customers, wherever we could make a fair profit; but we have not wished to enter into the kind of a partisanship that would be involved by granting loans, based only on such political security as could be offered by either side.
Early in the war the North
relied upon getting unlimited means by an issue of their bonds in Europe
, and in the loans authorized by Congress there was, with that view, a provision for making coupons payable in London
, and elsewhere; but it was pointed out by the Times
that any subscription to those bonds would be scarcely consistent with the encouragement of a neutral feeling, and would to that extent be undesirable.
If the Northern Government
had held large stores of wheat, and had offered them on certain terms for present or future delivery, according to circumstances, we should readily have entered into negotiations; but we should have done so, not because we wished to aid the North
, but because we wanted the wheat.
In like manner, it is perfectly legitimate to take the Confederate
cotton, and there is nothing that should prevent any of our merchants or capitalists from subscribing for it, provided they are satisfied with the price.
[from the London times city article, March 23.]
The demand for money at the bank and in the open market was very active on Saturday, (21st,) chiefly in consequence of the large amounts looked up in deposits on the Confederate
The Confederate loan touched 5 premium in the morning, then it relapsed during a short period to 4 premium, and closed at 4⅜ to 4⅝ premium.
The aggregate of the subscriptions in London
, Franklin, and Amsterdam
, is about fifteen millions of pounds sterling.
[from the London Post, (Government organ,) March 20.]
* * * That the dream of establishing a Confederacy independent of the United States Government is not so chimerical as Northern statesmen and Northern Senators
would have us believe, the negotiations of this loan abundantly prove.
There must be many who believe that the Southern Confederacy will not only establish its independence, but will not repudiate its debt, or otherwise three millions of money would not be lent, even on the substantial security which is offered in the shape of cotton.
The following is the advertisement of the loan, as published in the Liverpool and London
"Seven per cent. cotton loan of the Confederate States of America
for £1,000,000 sterling at ninety per cent."
The bonds to bear interest at ninety per cent per annum sterling from March 1st, 1863, payable half yearly in London
, or Frankfort
The bonds exchangeable on application at the option of the holder for cotton or redeemable at par in sterling at twenty years by half-yearly drawing, commencing March 1st, 1864.
This sum has been contracted with Messrs. Emilie
& Co., of Paris
, by the Government
of the Confederate States of America
, and is specially secured by an undertaking of the Government
to deliver cotton to the holders of the bonds on application, after sixty days notice.
Each bond shall, at the option of the holder, be convertible, at its nominal amount, into cotton, at six pence sterling for each pound of cotton — say 4,000 pounds of cotton for each bond of £100 or 2,500 francs — and this at any time not later than six months after the ratification of a treaty of peace between the present belligerents.
Notice of the intention of converting bonds into cotton has to be given to the representatives of the Government
, and sixty days after such notice the cotton will be delivered.
If in peace, at the ports of Charleston
, or New Orleans.
If in war, at points in the interior of the country, within ten miles of a railroad or a stream navigable to the ocean.
This delivery will be made free of all charges and duties excepting the existing export duty of one eighth of one per cent. per pound.
The quality of the cotton is to be of the standard of New Orleans Middlings.
If any cotton is of superior or inferior quality the difference shall be settled by two brokers--one to be appointed by the Government
, the other by the bond holder.
Whenever these two brokers cannot agree on the value an umpire is to be chosen whose decision is to be final.
It is at the same time provided that holders who do not convert their bonds into cotton shall be entitled to retain the bonds and receive interest at the rate of seven per cent per annum in sterling, payable half yearly, in London
, or Amsterdam
, at the option of the holder, until the repayment of the principal at par.
An annual sinking fund of 5 per cent. is provided for, whereby 2½ per cent. of the bonds unredeemed by cotton shall be drawn by lot half yearly, the first drawing to take effect on March 1st, 1864, and to be continued to 1st September following, and on the 1st March and 1st September in every succeeding year, so as finally to extinguish the loan in twenty years from the first drawing.
The bonds to be issued at ninety per cent., which is to be paid as follows:
- 5 per cent. on application.
- 10 per cent. on allotment.
- 10 per cent. on 1st May.
- 10 per cent. on 1st June.
- 10 per cent. on 1st July.
- 15 per cent. on 1st August.
- 15 per cent. on 1st September, less dividend 3½ per cent.
- 15 per cent. on 1st October.
Subscribers will have the option of paying the instalments in advance on allotment, or on any of the above dates, under a discount of seven per cent. per annum on such pre-payments, but in default of the payment of the respective instalments all previous payments will be liable to forfeiture.
[By payment under discount the price of the cotton is reduced to about per lb.]
After allotment scrip certificates will be issued to bearer.
These certificates, after payment of the last instalment, will be exchanged for bonds to bearer in sums of £100, £300, £500, and £1,000 each with coupons attached, payable 1st March and 1st September, as above stated.
Arrangements have been made for the execution of the bonds in Paris
From the proceeds of the subscription the contractors and their agents are authorized to retain sufficient funds to pay the first two coupons.
The drawings for the operation of the sinking fund will be duly advertised previous to the half yearly redemption.