The British went to Egypt for the sake of the bondholders, the French to Morocco for the sake of its minerals and wealth.

The bondholders will lose.

"I expect the new Government to be very considerate to the bondholders all round," said the colonel, as he pocketed it with a chuckle.

It turned the main position taken by the advocates of non-intercourse, which was that the real objection came from the bondholders who feared that the ensuing loss of revenue might prevent them from getting their interest.

By this "new way of paying old debts" she does not pay interest to her bondholders in cash, but gives them promises to pay instead, and so increases the burden of her debt, which she hopes some day to be able to shoulder again, by resuming payments in cash.

The consequence of this blunder was that Egypt went into default, and England's might was used on behalf of the bondholders who had made a bad investment.

The bondholders would have been reminded of the sound doctrine, caveat emptor, which signifies that those who make a bad bargain have only themselves to blame, and must pocket their loss with the best grace that they can muster.

England bought shares in the Canal, so using finance as a means to a political object; and it did so still more effectively when it used the Egyptian default and the claims of English bondholders as an excuse for taking its seat in Egypt and sitting there ever since.

The bondholders were certainly benefited, but it is my belief that they might have whistled for their money until the crack of doom if it had not been that their claims chimed in with Imperial policy.

In South Africa there was no question of default, or of suffering bondholders.

In many cases, however, he and the bondholders who subscribed to his issue simply have to say goodbye to their money, with the best grace that they can muster, in the absence of any law by which a lender can recover moneys advanced to a sovereign State.

Moreover, if they are troubled with any forebodings, the voice of common sense is likely to be hushed by the reflection that they personally will not be the sufferers, but the great body of taxpayers, or in the case of actual default, the deluded bondholders; and that in any case, the trouble caused by over-borrowing and bad spending is not likely to come to a head for some years.

He still remains responsible for receiving from the State, and paying to the bondholders, the sum due each half year in interest, and for seeing to the redemption of the bonds by the operation of the Sinking Fund, if any.

Just because the bondholders have no right of action against it, unless it can be shown that it issued a prospectus containing incorrect statements, it is all the more bound to see that their money shall not be imperilled by any action of its own.

Mr. Brailsford, indeed, asserts that it may be to the advantage of bondholders to be faced by default on the part of their debtors.

But in nine cases out of ten, as is shown by the plaintive story told by the yearly reports of the Council of Foreign Bondholders, default means loss and a shock to confidence, even if only temporary, and is generally followed by a composition involving a permanent reduction in debt and interest.

Co. (PWH); 3Jul61; R278437. FEILCHENFELD, ERNST H. Bonds and bondholders.

QUINDRY, CONSTANCE E. Bonds and bondholders.

SEE Quindry, Silvester E. QUINDRY, SILVESTER E. Bonds and bondholders; rights and remedies, with forms.

Including Rights and remedies of foreign bondholders by Ernst H. Feilchenfeld.

Co. (PWH); 3Jul61; R278437. FEILCHENFELD, ERNST H. Bonds and bondholders.

QUINDRY, CONSTANCE E. Bonds and bondholders.

SEE Quindry, Silvester E. QUINDRY, SILVESTER E. Bonds and bondholders; rights and remedies, with forms.

Including Rights and remedies of foreign bondholders by Ernst H. Feilchenfeld.

Here was the tangible wealth of the corporation and there were the diffused rights of ownership, the capital of individual stockholders and bondholders.