Nashville union and dispatch. [volume] (Nashville, Tenn.) 1866-1868, 1868-04-12
THE CONFEDERATE B0NDs-THEIR
RECREH HIIRInnY

| federacy and themselVes. Carteret sug
gested NJ. Erlanger, young banker, as th,
best man for their purpose, and suggested
cotton loan, which Erlanger and tn.
agent adopted, bat failed to give Cartere
any Of the benefits Of the suggestion. 1
Erlanger displayed great energy and
skill in his management Of the matter ir
its earlier stages. He sent several agents
by different routes TO Richmond, fortified
by Mr.. SlidelPs accommodation, and fur.
nished with drafts Of the terms on which
the proposed loan was to be given to him
and his associates, and negotiated with the
public. Some of the messengers went by
the blockade, others through the North.
The proposition of NJ. Erlanger & Co,
was submitted by these agents 20 the Con.
federate authorities at Richmond, and after
some notifications was sent into the Con-
fedeFate Congress for its sanction. Some
discussion took place in secret session ia
regard TO it, and some diversity of opinion
prevailed, but it was finally Endorsed, and
the agents came back TO have il carried out.
The loan was launched shortly afterward,
and proved at first success. The contract
was all to the advantage of the banker and
his associates. They obtained the loan al
seventy-four, with power to issue the stock
at ninety, in the foreign market; and OBJ
tained, besides, commission on the gross
sum of one and half per cent. for intro
ducing aud manipulating il. They had,
besides, the privilege conceded them Of
waving the execution of the contract, If
within three months time from the arrival
Of the proposition in Europe the banker
found he could not place it. That such re-
markable advantages were given, may be
accounted for by the fact that it was legis-
lated upon by Congress blindlold and ig-
norant of snch matters, and negotiated by
Commissioners who was more fayorably
known in the field of diplomacy than of
finance.
The nominal sum TO be raised was Co.
000,00O sterling, but Of this sum either a
third or fourth part was reserved by the
Confederate Government for its own use.
When il is further seen what opportunities
the European bankers had of manipulating
the loan oyer which they had such absolute
control, and Of "bulling or bearing"
the stock, il can easily be understood how
dear the Confederate States and people had
TO pay for their whistle. Still, when the
loan was first launched, it seemed a great
success, financially and politically. II was
announced 10 the London Times and other
papers, that 100000 had been subscribed
for instead Of 100000, and the stock was
quoted at from two TO three premium. IL
WAS issued al ninety, the bankers making
their great coup at once, and the subscrip-
tiens IN England we're bona fde and very
large-though very little indeed was ever
taken in France.
Contrary TO the prevailing impression
and even to the statements published under
authority of the Washington State Depart
ment, the subscription had little political
aud the names of no promi-
nent members of Parliament figured then
OF afterwards on the lists. Neither Mr..
Gladstone, Mr.. Gregory, Mr.. Roebuck,
nor any Of the prominent sympathizers of
the South in Parliament, ever owned dol
lar of that stock-the published lists to the
contrary notwithstanding. The largest
holder was Sir Henry de Haughton, one Of
the richest baronets in England, and de-
scended from one Of the oldest families.
From the commencement 10 the close of the
controversy, he ardently espoused the
Southern side, and subscribed G200, 600 for
the loan. Each drawing and payment of
interest he reinvested-so that at the close
he probably held one-tenth of the entire
losn-his great fortune enabling him 10
sustain loss sufficient 10 ruin most men.
Many other private gentlemen, merchants
and military men subscribed sums of Gl0
or e5000 and a great swarm of cotton
speculators went into il, 10 secure a control
Of the cotton which it pledged. Ii was a
gigantic and costly Job, of which the pro-
ieciors reaped the sole benefit, and the
Couiederates only got the contingent re-
mainder.
Tie chief attraction it presented to the
English mind was the co1trol it gave, or
was supposed to give, of Southern cotton.
Ii soon became a gambling stock, and its
fluctuations were wonderfully rapid, vary
ing with each steamers news, and some
times, in the course of a week, rising or
falling twelve per cent Mosieur Erlan-
ger, at this time, had neither the capital
nor the connection necessary TO put the
loan on the market. He merely exploited
it; and, through the agency of two pow
erful English houses, after obtaining the
concession, succeeded in floating IT, These
were the houses of Schroeder q Co., of Lon
don, aud Fraser, Trenholm s. Co., of Liver
pool, who took the matter in hand and did
1.-THE originators of the project giving a
slice only of their enormous concessions of
81, SOC, 600 as bonus, and taking neither
risk nor responsibility.
The loan when FIRST issued commanded a
premium of two or three percent; but it
soon fell 10 par, where it continued for
some time, then slowly fell, with occasional
fluctuations, as the Confederate cause
frightened OF darkened, until it finally
sunk among the ruins and rubbish Of the
lost Confederacy.
Ii was probably for long time the most
speculative stock ever toated on the London
Stock Exchange.
After the grand finale Of the Confederacy
there was no one, either in Europe or
America, empowered to investigate such
matters; and several propositions which
were made by some Of the ex-agents in Eu-
rope TO appoint board from their number
TO receive the reports OF all disbursing
agents so az to wind up all Confederate
affairs in order, failed to be carried
out.
The very few persons who knew anything
about this subject Kept their own counsel;
and, rs they are outside the reach Of ques-
tioning, will probably preserve the same
discreet silence TO the end. As the Con-
federaie loan was born in mystery, 40 did
IL live aud die, and where its remains were
deposited Is utterly unknown.
Curious as it seems, il still preserves a
small nominal value, and orders for i,s
purchase are frequently given, even now.
A committee OF bondholders, comprising a
number Of influential and respectable En-
glishmeu, hold regular sessions, and have
obtained legal opinions from eminent in-
rists as TO the lien which attaches TO the
relics Of Confederate property from those
bonds, issued a. they were by government
acknowledged as belligereni both by the
Northern and European Goyernments
And there are sensible business men IA
London to-day who believe that, at some
future time, that stock will represent value
again, a. il stands on totally different ba-
sis froIa any other Confederate obligation
issnei during the war. SO, OF all the crea-
tion Of the Coniederacy, the last spark vet
left glimmering is 10 be found in these Con.
federale cotton bonds.
The argument briefly is this While the
Us.ir ra,.,,A 61averntnanf had f.oasassiou Of