Friday, May 29, 2020

Edmund J. Forstall to Major-General Benjamin F. Butler, May 11, 1862

NEW ORLEANS, May 11, 1862.
Major-General BUTLER, U.S. Army,
Commanding Department of the Gulf:

SIR: I take the liberty respectfully to submit to you the following facts:

On the 1st of April last I presented for record in the books of the consul of the Pays-Bas, Am. Couturie, esq., the following resolutions of the Citizens' Bank of Louisiana, bearing date 25th of February last, placing in my hands for the purposes therein stipulated the sum of $800,000 in Mexican dollars, as agent of Messrs. Hope & Co., of Amsterdam:

James D. Denegre, president; Eugene Rousseau, cashier.

CITIZENS' BANK OF LOUISIANA,                    
New Orleans, February 25, 1862.

Extract from the journal of proceedings of the board of directors of the Citizens' Bank
of Louisiana at their sitting of 24th of February, 1862.

“Whereas the present rate of exchange on Europe would entail a ruinous loss on this bank for such sums as are due semi-annually in Amsterdam for the interest on the State bonds:

"Be it therefore resolved, That the president be, and he is hereby, authorized to make a special deposit of $800,000 in Mexican dollars in the hands of Messrs. Hope & Co., of Amsterdam, Holland, agents of the bondholders in Europe, through their authorized agent, Edmund J. Forstall, esq., for the purpose of providing for the interest on said bonds.

"Be it further resolved, That such portions of the above sum as may be required from time to time to pay the interest accruing on the State bonds shall be so applied by Messrs. Hope & Co.: Provided, however, That the bank shall have the option of redeeming an equivalent amount in coin by approved sterling exchange to the satisfaction of the agent of Messrs. Hope & Co.: And provided further, That in the event of the blockade of this port not being raised in time to allow of the shipment of said coin, then the said Edmund J. Forstall will arrange with Messrs. Hope & Co. for the necessary advances to protect the credit of the State and of the bank until such time as the coin can go forward to liquidate said debt; but no commission shall be allowed for such shipment of coin or any other expenses except those actually incurred, and on the resumption of specie payment by this bank this trust to cease and the balance of coin to be returned to the bank.”

On the 12th of April, as agent of Messrs. Hope & Co., and with a view to their better security in such times of excitement, I deemed it my duty to withdraw the said sum of $800,000, already marked and prepared for shipment, say 160 kegs, Hope & Co., containing $5,000 each, and to place the same under the protection of the consul of the Netherlands, Am. Couturie, esq., for which I hold his receipt as follows:

CONSULATE NETHERLANDS,               
New Orleans, April 12, 1862.

Received on deposit from Mr. Edmund J. Forstall, agent in this city of Messrs. Hope & Co., of Amsterdam, 160 barrels, marked H. & C., and containing each $5,000, total 800,000 Mexican dollars. The said barrels are deposited in the vaults of the Netherlands consulate, 109 Canal street.

AM. COUTURIE,                 
Consul Netherlands.

I also placed in the hands of the said consul on the same day ten bonds of the New Orleans City for $1,000 each, and eight bonds of the city of Mobile, for which he gave me the following receipt:

NEW ORLEANS, April 12, 1862.

Received on deposit from Mr. Edmund J. Forstall, agent in this city of Messrs. Hope & Co., of Amsterdam, ten consolidated bonds debt of New Orleans of $1,000 each, eight bonds of the city of Mobile of $1,000 each, which bonds were placed in my hands to the account of Messrs. Hope & Co., Amsterdam.

AM. COUTURIE,                 
Consul Netherlands.

On the first reliable opportunity offering of communicating with Messrs. Hope & Co., which was on 1st of April last, I wrote them as follows:

The Citizens' Bank and Consolidated Association, unlike our other banks, being based on foreign capital, I have thought it my duty to interfere in behalf of the bondholders you represent in order to secure as much of the cash assets of the institution in question as needed punctually to meet running interests in Europe until communications are again opened. For this special purpose the Citizens' Bank has placed in my hands $800,000 in Mexican dollars under the following resolutions. (Same as before transcribed.) This document has been registered as follows:

"Seen and registered in the journal at the consulate under the heading of Order 1, New Orleans, April 1, 1862.

"AM. COUTURIE,               
"Consul of the Netherlands."

For the protection of French property in case of need, the French consul has taken a fireproof building formerly occupied by the Canal Bank with vaults for coin, &c. The French consul has consented to receive for safe-keeping under the protection of your consul the above amount of $800,000 of Mexican dollars. I am also depositing there ten New Orleans City bonds and eight city of Mobile bonds belonging to you. I am doing the same with the bonds belonging to Messrs. Baring Bros. & Co., under the protection of the British consul.

The French consul having subsequently declined receiving the above specie, Mr. Am. Couturie used his own vaults in Canal street.

I hold the power of attorney of Messrs. Hope & Co., covering my whole intervention in this matter; also the originals of all the documents before transcribed, which I am ready to exhibit if desired. I may be permitted here to remark that so far back as the middle of February last I called the attention of both the Citizens' Bank and Consolidated Association to the propriety of securing against all contingencies, and, so far as they were able, the bondholders represented by Messrs. Hope & Co. and Baring Bros. & Co., who had supplied them with their banking capital.

Under these circumstances I deem it my duty to claim in behalf of Messrs. Hope & Co., of Amsterdam, the above sum of $800,000, say 160 kegs, marked H. & Co., containing each $5,000, which, I am informed, has been forcibly taken out of the possession of the consul of Holland, Am. Couturie, esq., and I trust that on a consideration of facts no doubt unknown to you you will see the justice of ordering said money to be returned to me that I may ship same to Europe in accordance with my contract with the Citizens' Bank so soon as I may be permitted to do so.

I am, very respectfully, your obedient servant,
 EDM. J. FORSTALL.

SOURCE: The War of the Rebellion: A Compilation of the Official Records of the Union and Confederate Armies, Series III, Volume 2 (Serial No. 123), p. 117-9

No comments: