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


dition Of the Confederate government il
Europe. The total debts of the Confel
eracy abroad for cannon, arms, ships, ant
supplies, at that time, were put down al
f1,74L0oQ ($8, 5,oO0}. Sat the sam,
time" reads the correspondence, "Erlnill
d'Erlanger IL Co. furnished the meeting
with a full statement concerning the loan.
According to which, el,85O,oOO ($9,25O,
OOO) of the loan is in circulation; part O
which is full paid, having been subscribed
for by the creditors of the government"
The balance of l9I $4,000 was in the
hands of D'Erlanger for disposal. In &
letter written two days later, on the 9th
by D'Erlanger to Memminger, we learn
how there happened to be 50 large an
amount of the stock on hand. UnfaYora-
bic news from America caused feeling OF
.uneasiness, and speculative holders began
to sell at deprecated rates. d: .E.ratl ..
can arrangement" says D'Erlanger
"was thereupoh entered into with Mr.. Ma
son, and heartily approved by Mr.. SideII,
which. enabled us to buy for the govern
ment Fl 100000 of the stock but so eacer
was the speculation, that this did not.suc-
flee, and the sum had to be extended to
f1,5O0,00O. This operation had its effect,
and better tidings helped the market"
On the 18th of June McRae wrote to
D Eranger sharp letter charging him
with unauthorized proceedings DEF
langer was playing good game for him
self. t--I';i Na..o ..9.a1 |-.
"These important notifications of the
contract" wrote McRae, "have IN every
case Injured to tie benefit Of tie con-
tractors" . ' 10 -
D'Erlanger replied on the same dav,
saying, ''The operation the repurchase of
the stock was not conducted on any self
ish ground, but for the political feeling at
tached to the Loan" II made no differ
ence to D'Erlanger whether he bought or
sold on government account, so long as he
received his commissions. He objected,
however, to receiving the full amount of
his commission in bonds: he must have
part cash.
"We sheuld," wrote he, "be Under too
heavy an outlay if we had to take the
100000 commission in bonds" This
commission, therefore, up to the 18th of
June 1868, had reached the nice little sum
of $750,o00l
DErlanger, having disposed of the stock
to good advantage, was anxious to bring
out second on the same terms. In let
ter written to Memminger on the sth of
July, we find out what those terms were.
"We are ready" said he, ''to make a new
loan contract, taking exactly the terms of
the old contract, and engaging to divide
with the government the profits to be re-
allied, between the rate of II and the is
sue price" ,..
The loan then on the market IS issued
at 90, which gave D'ErIanger commits
SION of l3 per cent-a portion of which
doubtless went into the pocket of Slidell.
was fearful that the success of
the loan would bring proposals from other
banking houses. 1--WE wish" said he, chat
the circumstance of our names being he
first connected with large financial trans
action for the government in Europe shall
tell in cur favor and that a preference
shall be granted to US, which we are quite
ready to merit, by making better terms to
the government than any other respectable
house may Offer"
At later date, in December, the cor
is in regard to the purchase
of boats for the government, in which the
Paris banker takes the part of Shylock -
'Well then, it now appears you want my help:
Go to, then; you come to me, and you say,
Shylock, 'ce mould hare moneys.'' ..'.... ...
McRae wanted 92OO,0 900 on government
account, and applied to D'Eranger, whose
terms will be seen from the following cx-
tract from McRae's letter. .a.
"Iour proposition amounts to this -
That the government should pay 100 per
cent for the use of 100000, for probably
less than six months, with no risk on the
part of the lenders, as the 965O,OOO of
bonds deposited, and the lien on the boats
purchased with the sum lent, would protect
them against loss in any event. NY prop
osition was to pay 335 for 100000, for
a period of probably ten or twelve months,
This | considered sufficiently favorable for
the lenders, as they would have been Sc
cured by the deposit Of f333, 1888 of bonds,
and lien on the boats" 'a.. e.-al
The American people, doubtless, care
very little who among Rebel agents and
bond;holders made or lost money, and [
pass over the details Of the interesting cor
That DErlapger managed
it shrewdly for his own benefit is very ev-
ident He charged interest," commission,
and exchange on all the stock passing thro'
his hands. In the transaction Gl40,O00
raised from the sale of bonds was set aside
as caution money!" by Mason and Sldell,
who wished, for political considerations, to