lions Sterling at_ 90 _per Cent_." The bonds were to
bear interest at seven per cent. and were to be exchangeable for cotton
at the option of the holder at the price of sixpence "for each pound of
cotton, at any time not later than six months after the ratification of
a treaty of peace between the present belligerents." There were
provisions for the gradual redemption of the bonds in gold for those who
did not desire cotton. Subscribers were to pay 5 per cent. on
application. 10 per cent. on allotment, 10 per cent. on each of the
days, the first of May, June and July, 1863, and 15 per cent. on the
first of August, September and October.

Since the price of cotton in England was then 21 pence per pound it was
thought here was a sufficiently wide margin to offer at least a good
chance of enormous profits to the buyer of the bonds. True "the loan was
looked upon as a wild cotton speculation[1060]," but odds were so large
as to induce a heavy gamblers' plunge, for it seemed hardly conceivable
that cotton could for some years go below sevenpence per pound, and even
that figure would have meant profit, _if_ the Confederacy were
established. Moreover, even though the loan was not given official
recognition by the London stock exchange, the financial columns of the
_Times_ and the _Economist_ favoured it and the subscriptions were so
prompt and so heavy that in two days the loan was reported as
over-subscribed three times in London alone[1061]. With the closing of
the subscription the bonds went up to 95-1/2. Slidell wrote: "It is a
financial recognition of our independence, emanating from a class
proverbially cautious, and little given to be influenced by sentiment or
sympathy[1062]." On Friday, March 27, the allotment took place and three
days later Mason wrote, "I think I may congratulate you, therefore, on
the triumphant success of our infant credit--it shows, _malgre_ all
detraction and calumny, that cotton is king at last[1063]."

"Alas for the King! Two days later his throne began to tremble and it
took all the King's horses and all the King's men to keep him in
state[1064]." On April 1, the flurry of speculation had begun to falter
and the loan was below par; on the second it dropped to 3-1/2 discount,
and by the third the promoters and the Southern diplomats were very
anxious. They agreed that someone must be "bearing" the bonds and
suspected Adams of supplying Northern funds for that purpose[1065].
Spence wrote from