The evening telegraph. [volume] (Philadelphia [Pa.]) 1864-1918, 1866-07-20
CORRUPTIONs OF ENGLISH JOUR-
NALIST3. -

BANKER, VINO had OranCn mouse III riSuNlOI',
conducted by his brother, Raphael dErlanger.
This firm was recommended by Slidell as
suitable agency for bringing out the loan, and
she contract was given them by Mr.. Memmin'
ger. D,Erlanger began preparations for putting
Il on the market in February, 1868. He desired
m issue il in England. France, Holland, and
Germany at the same time, to bring to the Con
Sederncy the financial support of Europe. The
considerations were political as well as financial.
He found some difficulty, no gever, in obtaining
English agents. 1t was offered to other bankers,
but was refused. He found willing agents at
last in Messrs. John Henry Schroeder & Co.
and the firm OF Messrs. Lawrence, Son *
Pearce. In Liverpool Messrs. Frazer, Trenholm
d Co. had been acting as agents of the Con-
federacy and the management was placed In
their hands. SchToeder's agents in Amsterdam
managed it there, while DErlaneer's branch
house III Frank ort brought 1t out in that city.
DErangcr himself manipulated 1t IN Paris.
D'Erlanger and MIR. Beer of his firm visited
England, and arranged matters with Mason,
Spence. and with Frazer Trenholm d Co., all of
whom we're acting as agents OF the ontederacy.
special agent had been appointed by the Rebel
Government to take charge Of the loan-Gen-
eral G. j. McRae who was on mis- way from
Richmond to PARIS; but as the needs of the
COntederacy we're urgent, the loan was opened
before his arrival.
The support OF the press was secured-all but
two Ur three paoers being brought, through the
agency OF Mr.. De Leon, Mr.. Mason, and Mr..
Spence to praise the Contederacy cry down
the Union, and urge recognition by France and
England as the surest way to put an end to the
war.
The correspondence In nv possession between
the parties opens on the lst OF March. Mr..
Spence, sitting III his paror in the Burlington
Hotel, Old Burlington street, Loadon, writes TO
Baron dErlanger, who Is in Paris, asking ior a
copy OF the contract.
DErlanger did not place a very high estimate
on the ability of Mr.. Spence as a financial
MANAGER; but as he was the correspondent OF
the 1SnleS and commercial agent of the Con-
tederacy, 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 D'Erlanger:-
"YOu said something in the last interview of
ESQ 100 OF the stock. Ii it had occurred to YOU TO
put 0Own 10 me that IantitY at the price of
SEVENTY vseven, snou be dIspo ed to consider IL,
looking to the advantage to all concerned OF having
common interest"
AS the loan was issued at 80, this proposal OF
Mr.. Spence to take it at 77-eiving hlm margin
OF l3 per cent under the contract price-was In
abe language of bankers, "a shave Tor his SER
wees as correspondent OF the Times, transac-
tiOn upon which more light will be thrown
further on in this history.
The loan was put upon the market on the 10th
OF March. Fifteen per cent was to be paid at
the line of subscribing. The stock was limited
to three million pounds sterling ($l5,OOO,0OO),
but SO desirous were Englishmen 10 take It, that
The applications were for $4,000 600 S45 900 00O).
On inc evening Of the 10Th, Mr.. Spence wrote
to DErlanger of Its success in Liverpool -
"Al goes well here The cotton trade take II I'D
with st1oaR interest, and it will come out for large
sums. applied very earlv for ECO COO, and thought
1 shou have been the first, but found p was
before me, with his El00,00O You will have LOT
OF applca IONS IN London from the stor gs-that Is
those VINO JOIN to sell at the premium Here we
have class OF that kind, and applicants as In
Manchester beng more bona fde, wall as a ru g,
take a day or two to digest Its merits The market
day"
On the next day, the goth, Mr.. Spence writes:-
I'VE shall very much exceed a million here,
think, ty noon to morrow. he political effect will
be enormous 1t IS the recognition OF the oouth by
the intelligence of Europe
On the 2lst, CONGRATULATIONS were received
by D'Erlanger from Slide, who was IN London.
"Allow me to congratulate you" said he "on
your ndgnafC success. Apart IRON the direct
advantages of the affair it cannot tail to give
prestige to your house."
''The Emperor himself, through the medium
of his Chef de Cabinet" wrote D'Erlanger to
Memminger, "comphmentcd us upon the great
success; a proof with what interest the ope-
ration had been received by all friends OF the
South.n
had rushed TO secure it, bankers of respeCta
hihty-men who priced honor and integrity
above pounds and pence-stood alo0f tor they
remembered that MIR. jefferson Davis, President
of the slaveholding Confederacy, was repudia-
tor No allegation aga nst him had been made
through the press, but the Times came to the
rescue before the attack. On the 18th, the day
on which the loan was issued, Mr. Sampson,
editor OF the city article sald:-
"lhose among the knglish people who are still
suffering from Mississippi lei pudiatiOn wit perhaps
view with wUnOer and regret the NEGOTIATION OF q
loan for o Government or which MIR. Jefferson Davis.
by whom that reputation was defended IN his place
in CONGRESS ls the head. but the southern Con-
fedeIacy includes Virginia, Ge0rPia, and other
honorable States an0 II Is the prospect OF what
abe Conlederacy will do as a who Q that people will
make their ca culatlon. he reasoning that would
exclude the South from loan account OF Missis-
sippI, would apply equally to the Nor h. since the
North embraces MIchis san 1t would so have aD-
Piled to the United States loans negotiated while
Msslssppl was a otale or the Union, ano especially
WIN Mr. Jefferson DAVIS was an influential member
OF the Federal Government, and regaroed wi h high
1aVor by all the Northern population, by whom the
remarks OF the Times on ms financial views were
then dec ared to be nothing but the outpOurngs OF
British ranc0r"
The State OF Mississippi had obtained the
money in London on the solemn pledge OF the
faith OF the State, and loaned it to the citizens
but the State had broken its pledge repudiated
the debt, and Mr.. JEFF. DAVIS eulogized the pro
eedngl The Courts of the State decreed 10
lS42 that the debt was wand, and the decision
was reathImed IN 1888. JEFF. Davis was then
Secretary OF War, and Though his efforts anC
influence the State continued to repudiqte th(
claims OF the British bondholders. In 1856,
Mi sissippi was Indebted t. Englshmen no
only Tor the principal S5, 900, ,000 but Tor twenty
five years OF unpaid interest, yet notwithstand
ing this, the Times, eating its words OF otle
days came before the English people with
certificate of character for the repudiator, ais
publishing one from Shdeli. 81 am inclined t
think - wrote Slidel, that the people IN Londol
Confound Mr. Reuben Davis, whom 1 hay
ALWAYS understood TO have taken the lead o
the question OF Reputation, with President Je
terson Davis. l am not aware that the latte