The South Borrows $15,000,000.
Under date ‘
Richmond, January 15, 1863,’
Secretary of State Benjamin wrote to
Commissioner Mason: ‘The agents of
Messrs. Erlanger & Co. arrived a few days before your dispatches and were quite surprised to find their proposals were considered inadmissible.
They very soon discovered how infinitely stronger we were and how much more abundant our resources than they had imagined.
We
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finally agreed with them to take fifteen millions instead of twenty-five millions which they offered.’
The 7 per cent. bonds of the government were taken at 77.
The
Secretary said the government took the money really because
Mr. Slidell advised the step to assist the negotiations for recognition of
France.
At that very time, when the government wanted no money, the Ordnance Department was drawing the copper to make
percussion caps from old distillery outfits in
North Carolina and the commanding generals stood aghast at the long line of shoeless, ragged men in their ranks.
The
Erlanger loan was placed in
London with immediate and astonishing success.
March 3, 1863,
Mr. Erlanger had returned and the first offering of $5,000,00 appeared on Lombard street. Before the day closed $10,000,000 had been subscribed and the premium was 5 per cent. When the aggregate of bids for the entire loan of $15,000,000 was summed up $75,000,000 had been subscribed.
