The news & observer. [volume] (Raleigh, N.C.) 1894-current, 1901-06-02

The Columbia State has a story about
how the Confederacy might have obtain
ed all the money it needed to prosecute
the war that is new to us, and is quite
interesting and appropriate as the after
math Of the recent Confederate Reunion
in Memphis Here it is:
Some people are wont to console them
selves with the thought that the Confed-
eracy might have won if
"That ''if'' embraces many reasons. II
Albert Sidney Johnston had lived to pur-
sue his victory over Grant at Shiloh. II
Pemberton had not surrendered too hasti-
Iy al Vicksburg If Stonewall Jackson
had not yielded his life at Chancellors-
Vile If
But there is one sordid consideration
which is little thought Off the South
had had the money! Col. James G.
Gibbes of this city, the present surveyor
general, recalls an interesting fact hear
ing on this eff.
I'm 1862 he was sent out by the treas
TRY department of the Confederacy to ne
gotiate the famous cotton bonds" Mr..
G. G. Memminger of this State was secre-
tary of the treasury but Col. Gibbes was
cent at the advice of Mr.. Judah P. Ben
iamin. Attorney General who had, while
an attorney in New Orleans, been legal
adviser of Col. Gibbes.
''The latter ran the blockade out of
Charleston the first week in November.
Internationally, Col. Gibbes remarked
that blockade running was far from an
imnossibility. John Frazier & Co., were
famous blockade runners, and made 60
trims before a single vessel was attached.
However pilots we're paid fabulous prices,
and a captain received $4,000 in gold for
each triD.)
arrived at Nassau, Col. Gibbes spent
a month waiting to get over TO Liverpool
When he arrived at the latter place, ne
conferred with James Spence, an English
man, financial agent OF the Contederacy.
For several weeks they worked nard and
without success in the endsaVor TO dls-
pose of the bonds at fair figure col.
Gibbes carried over with him $l',OOo0O
of these bonds. These bonds proposed
that the amount on the face be pad 10
the holder, in specie or in cotton at ~
cents a pound, within six months after
peace should be declared.
FINALLY the whole issue was taken by
Baron Erlanger, a wealthy German with
banking houses at Frankfort Paris and
Amsterdam. (After the war Erlanser
built a number of railroads in the South
which he styled the "Erlanger Systen..0
Baron Erlanger ridiculed the idea of the
South issuing $15 900, 900 in bonds When a
much larger figure could have been nego-
tiated. For it is a fact that at that time
cotton was bringing from so to 50 cents a
hound in Liverpool, and these bonds pro-.
yided for the redemr ton of the money
with cotton at 10 cents pound. Col.
Gibbes is not positive what Erlanger
gave for the bonds, but thinks the price
was over so cents on the dollar
This was a speculation for the wealthy
foreigners, and he advertised for nropo-
sails for the bonds. He put che minimum
price to be bid al 30 cents The actual
bids were even higher. Miralnle dictu!
There we're but fifteen millions Of collars
represented by tile bonds, yet the bids
aggregated S625,G69 eco. 1t is evident
that more than SIS, OoO,O 900 could have been
gotten.
'.Erlanger came to this country and
from President Lincoln at Washington
obtained a pass to Richmond-for Lincoln
did not know Erlanger or suspect his mis-