y a secret act of Congress on the day
following[1054]. But there was no Southern enthusiasm for the project.
Benjamin wrote to Mason that the Confederacy disclaimed the "desire or
intention on our part to effect a loan in Europe ... during the war we
want only such very moderate sums as are required abroad for the
purchase of warlike supplies and for vessels, and even that is not
required because of our want of funds, but because of the difficulties
of remittance"; as for the Erlanger contract the Confederacy "would have
declined it altogether but for the political considerations indicated by
Mr. Slidell[1055]...."

From Mason's view-point the prime need was to secure money; from
Slidell's (at least so asserted) it was to place a loan with the purpose
of establishing strong friends. It had been agreed to suspend the
operations of Spence until the result of Erlanger's offer was learned,
but pressure brought by Caleb Huse, purchasing agent of the Confederacy,
caused a further sale of "cotton warrants[1056]." Spence, fearing he was
about to be shelved, became vexed and made protest to Mason, while
Slidell regarded Spence[1057] as a weak and meddlesome agent[1058]. But
on February 14, 1863, Erlanger's agents returned to Paris and
uncertainty was at an end. Spence went to Paris, saw Erlanger, and
agreed to co-operate in floating the loan[1059]. Then followed a
remarkable bond market operation, interesting, not so much as regards
the financial returns to the South, for these were negligible, as in
relation to the declared object of Slidell and the Richmond
Government--namely, the "strong influences" that would accompany the
successful flotation of a loan.

Delay in beginning operations was caused by the failure to receive
promptly the authenticated copy of the Act of Congress authorizing the
loan, which did not arrive until March 18. By this contract Erlanger &
Company, sole managers of the loan, had guaranteed flotation of the
entire $15,000,000 at not less than 77, the profit of the Company to be
five per cent., plus the difference between 77 and the actual price
received, but the first $300,000 taken was to be placed at once at the
disposal of the Government. The bonds were put on the market March 19,
in London, Liverpool, Paris, Amsterdam and Frankfurt, but practically
all operations were confined to England. The bid for the loan was
entitled "_Seven per Cent. Cotton Loan of the Confederate States of
America for_ 3 _Mil