The Potter journal. [volume] (Coudersport, Pa.) 1857-1872, 1866-08-28
THE REBEL COTTON LOAN.


English hondholders of the Rebel cotton
loan,-a subject of much interest on both
sides of the Atlantic. The bondholders,
among whom are peers of the realm and
members of Parliament, not being able tc
obtain any satisfaction from Baron DIR
langer, the negotiator of the loan, asked
the United States to recognize their claims
against the Confederacy, but were summa-
rily dismissed by Mr.. Seward. The secret
history of the operations, schemes, and plans
of Mason, SlideI, and D'ErIanger is about
to be given to the public in volume en-
titled "Four Years of Fighting" by c. G.
Coffin, widely known as Carleton, who, in
addition to vivid descriptions of battles, and
incidents of marches, and in the camps and
hospitals and prisons, has chapter upon
the loan, replete with quotations from the
correspondence of Mason, Slidell, D'Erlan
ger, McRae, the Rebel agent in charge of
the loan, and Spence of Liverpool, the cor
respondent of the London Times. The
author entered Richmond while the city
was in flames, and in passing through the
streets picked up package which con-
tanned the correspondence between the
parties, showing how the loan was negoti
ated, how the London Times was brought
into the service and pay Of jeff Davis, what
interest the Emperor Of France took In the
success of the loan, how the loan was put
upon the market, and who received com
missions and emoluments.
The work is published by Messrs. Tick
nor and Fields of Boston, and is sold by
agents only. The following selections from
the chapter upon the lean will show the
public the venality of the Times, the du
plicity of the mani pulators Of the loan, and
how disconsolate bond-holders lost their
money.
Mr.. Shdell had made the acquaintance
Of Baron Ermie d'Erlanger Of ? Paris, jew
ish banker, who had branch house in
Frankfort, conducted by his brother, Raph-
ael D'Erlanger This firm was recon-
mended by Slidell as a suitable agency for
bringing out the loan, and the contract was
given them by Mr.. Memminger. DEF
langer began preparations for putting it on
the market in February, 1868. He de-
sired to issue it in England, France, Hol-
land, and Germany at the same time, to
bring to the Confederacy the financial sup
port of Europe. The considerations were
political as well as financial. He found
some difficulty, however, in obtaining Eng
lish agents. The Barings and Rothschilds
stood aIoof He offered the London man
agement to Messrs. John H. Gilliat d Co.,
but that firm declined having anything to
do with it. 1t was offered to other bank
ers, but refused. He found willing agents
at last in Messrs. John Henry Schroeder d
Co., aud the firm of Messrs. Lawrence, Son,
and Pearce. In Liverpool Messrs. Frazer,
Trenholm 6g Co. had been acting as agents
Of the Confederacy, and the management
was placed in their hands. Schroeder's
agents in Amsterdam managed it there
while D'Erlanger's branch house in Frank
fort brought it out in that city. DEF
LANCER himself manipulated it in Paris.
D'Erlanger and Mr.. Beer, of his firm,
visited England, and arranged matters with
Mason, Spence, and with Frazer, Trenholm,
& Co., all of whom were acting as agents
of the Confederacy. A special agent had
been appointed by the Rebel government
to take charge of the loan,-General c. J.
McRae, who was on his way from Rich
mond to Paris; but as the needs of the
Confederacy were urgent the loan was
opened before his arrival.
The support of the press was secured,-
all but two or three papers being brought
through the agency Of Mr.. DeLeon, Mr..
Mason, and Mr.. Spence to praise the Con
federacy, cry down the Union, and urge
recognition by France and England as the
surest wa; to put an end to the war;
The correspondence in my possession
between the parties opens on the lst Of
March. Mr.. Spence, sitting in his parlor
in the Burlington Hotel, Old Burlington
Street, London, writes to Baron d'Erlanger,
who is in Paris, asking for copy Of the
contract. s#
D'Erlanger did not place very high es-
innate on the ability of Mr.. Spence as a
financial manager; but as he was the cor
respondent of the Times, and commercial
agent of the Confederacy, thought best not
to offend him. Spence, on the other hand,
saw an opportunity to make money. A
week later on the 9th of March, he wrote
thus to DErlanger:-
"You said something in the last inter
view of $4,000 of the stock. If it had
occurred to you to put down to me that
quantity at the gross price of sevcnty-seven,
| should be disposed to consider it, looking
to the advantage Of all concerned having a
common interest"
AS the loan was issued at 90, this pro
posal OF Mr. Spence to take it at 77-giy-
ing him margin of l3 per cent. under the
contract IL r