Part 46 (1/2)

From Mason's view-point the prime need was to secure money; from Slidell's (at least so a.s.serted) it was to place a loan with the purpose of establis.h.i.+ng 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 ent.i.tled ”_Seven per Cent. Cotton Loan of the Confederate States of America for_ 3 _Millions 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 cla.s.s 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 Liverpool in great alarm and coincidently Erlanger & Company urged that Mason should authorize the use of the receipts already secured to hold up the price of the bonds. Mason was very reluctant to do this[1066], but finally yielded when informed of the result of an interview between Spence, Erlanger, and the latter's chief London agent, Schroeder. Spence had proposed a withdrawal of a part of the loan from the market as likely to have a stabilizing effect, and opposed the Erlanger plan of using the funds already in hand. But Schroeder coolly informed him that if the Confederate representative refused to authorize the use of these funds to sustain the market, then Erlanger would regard his Company as having ”completed their contract ... which was simply to issue the Loan.” ”Having issued it, they did not and do not guarantee that the public would pay up their instalments. If the public abandon the loan, the 15 per cent sacrificed is, in point of fact, not the property of the Government at all, but the profits of Messrs. Erlanger & Co., actually in their hands, and they cannot be expected to take a worse position. At any rate they will not do so, and unless the compact can be made on the basis we name, matters must take their course[1067].”

In the face of this ultimatum, Spence advised yielding as he ”could not hesitate ... seeing that nothing could be so disastrous politically, as well as financially, as the public break-down of the Loan[1068].” Mason gave the required authorization and this was later approved from Richmond. For a time the ”bulling” of the loan was successful, but again and again required the use of funds received from actual sales of bonds and in the end the loan netted very little to the Confederacy. Some $6,000,000 was squandered in supporting the market and from the entire operation it is estimated that less than $7,000,000 was realized by the Confederacy, although, as stated by the _Economist_, over $12,000,000 of the bonds were outstanding and largely in the hands of British investors at the end of the war[1069].

The loan soon became, not as had been hoped and prophesied by Slidell, a source of valuable public support, but rather a mere barometer of Southern fortunes[1070]. From first to last the Confederate Cotton Loan bore to subscribers the aspect of a speculative venture and lacked the regard attached to sound investment. This fact in itself denied to the loan any such favourable influence, or ”financial recognition of the Confederacy,” as Mason and Slidell, in the first flush of success, attributed to it. The rapid fluctuations in price further discredited it and tended to emphasize the uncertainty of Southern victory. Thus ”confidence in the South” was, if anything, lessened instead of increased by this turning from political to financial methods of bringing pressure upon the Government[1071].

Southern political and parliamentary pressure had indeed been reserved from January to June, 1863. Public attention was distracted from the war in America by the Polish question, which for a time, particularly during the months of March and April, 1863, disturbed the good relations existing between England and France since the Emperor seemed bent on going beyond British ”meddling,” even to pursuing a policy that easily might lead to war with Russia. Europe diverted interest from America, and Napoleon himself was for the moment more concerned over the Polish question than with American affairs, even though the Mexican venture was still a worry to him. It was no time for a British parliamentary ”push”

and when a question was raised on the cotton famine in Lancas.h.i.+re little attention was given it, though ordinarily it would have been seized upon as an opportunity for a pro-Southern demonstration. This was a bitter attack by one Ferrand in the Commons, on April 27, directed against the cotton manufacturers as lukewarm over employees' sufferings.

Potter, a leading cotton manufacturer, replied to the attack. Potter and his brother were already prominent as strong partisans of the North, yet no effort was made to use the debate to the advantage of the South[1072].

In late May both necessity and fortuitous circ.u.mstance seemed to make advisable another Southern effort in Parliament. The cotton loan, though fairly strong again because of Confederate governmental aid, was in fact a failure in its expected result of public support for the South; something must be done to offset that failure. In Polish affairs France had drawn back; presumably Napoleon was again eager for some active effort. Best of all, the military situation in America was thought to indicate Southern success; Grant's western campaign had come to a halt with the stubborn resistance of the great Mississippi stronghold at Vicksburg, while in Virginia, Lee, on May 2-3, had overwhelmingly defeated Hooker at Chancellorsville and was preparing, at last, a definite offensive campaign into Northern territory. Lee's advance north did not begin until June 10, but his plan was early known in a select circle in England and much was expected of it. The time seemed ripe, therefore, and the result was notification by Roebuck of a motion for the recognition of the Confederacy--first step the real purpose of which was to attempt that 'turning to the Tories' which had been advocated by Spence in January, but postponed on the advice of Gregory[1073]. _The Index_ clearly indicated where lay the wind: ”No one,” it declared ”now asks what will be the policy of Great Britain towards America; but everybody anxiously waits on what the Emperor of the French will do.”

”... England to-day pays one of the inevitable penalties of free government and of material prosperity, that of having at times at the head of national affairs statesmen who belong rather to the past than to the present, and whose skill and merit are rather the business tact and knowledge of details, acquired by long experience, than the quick and prescient comprehension of the requirements of sudden emergencies....

”The nominal conduct of Foreign Affairs is in the hands of a diplomatic Malaprop, who has never shown vigour, activity, or determination, except where the display of these qualities was singularly unneeded, or even worse than useless.... From Great Britain, then, under her actual Government, the Cabinet at Was.h.i.+ngton has nothing to fear, and the Confederate States nothing to expect[1074].”

Of main interest to the public was the military situation. The _Times_ minimized the western campaigns, regarding them as required for political effect to hold the north-western states loyal to the Union, and while indulging in no prophecies as to the fate of Vicksburg, expressing the opinion that, if forced to surrender it, the South could easily establish ”a new Vicksburg” at some other point[1075]. Naturally _The Index_ was pleased with and supported this view[1076]. Such ignorance of the geographic importance of Vicksburg may seem like wilful misleading of the public; but professed British military experts were equally ignorant. Captain Chesney, Professor of Military History at Sandhurst College, published in 1863, an a.n.a.lysis of American campaigns, centering all attention on the battles in Maryland and Virginia and reaching the conclusion that the South could resist, indefinitely, any Northern attack[1077]. He dismissed the western campaigns as of no real significance. W.H. Russell, now editor of the _Army and Navy Gazette_, better understood Grant's objectives on the Mississippi but believed Northern reconquest of the South to the point of restoration of the Union to be impossible. If, however, newspaper comments on the success of Southern armies were to be regarded as favourable to Roebuck's motion for recognition, W.H. Russell was against it.

”If we could perceive the smallest prospect of awaking the North to the truth, or of saving the South from the loss and trials of the contest by recognition, we would vote for it to-morrow. But next to the delusion of the North that it can breathe the breath of life into the corpse of the murdered Union again, is the delusion of some people in England who imagine that by recognition we would give life to the South, divide the nations on each side of the black and white line for ever, and bring this war to the end. There is probably not one of these clamourers for recognition who could define the limits of the State to be recognized.... And, over and above all, recognition, unless it meant 'war,' would be an aggravation of the horrors of the contest; it would not aid the South one whit, and it would add immensely to the unity and the fury of the North[1078].”

The British Foreign Secretary was at first little concerned at Roebuck's motion, writing to Lyons, ”You will see that Roebuck has given notice of a motion to recognize the South. But I think it certain that neither Lord Derby nor Cobden will support it, and I should think no great number of the Liberal party. Offshoots from all parties will compose the minority[1079].” Russell was correct in this view but not so did it appear to Southern agents who now became active at the request of Roebuck and Lindsay in securing from the Emperor renewed expressions of willingness to act, and promptly, if England would but give the word.

There was no real hope that Russell would change his policy, but there seemed at least a chance of replacing the Whig Ministry with a Tory one.

The date for the discussion of the motion had been set for June 30. On June 13, Lindsay, writing to Slidell, enclosed a letter from Roebuck asking for an interview with Napoleon[1080], and on June 16, Mason wrote that if Slidell saw the Emperor it was of the greatest importance that he, Mason, should be at once informed of the results and how far he might communicate them to ”our friends in the House[1081].” Slidell saw the Emperor on June 18, talked of the possibility of ”forcing the English Cabinet to act or to give way to a new ministry,” asked that an interview be given Lindsay and Roebuck, and hinted that Lord Malmesbury, a warm friend of the Emperor, would probably be the Foreign Secretary in a Tory cabinet. Napoleon made no comment indicating any purpose to aid in upsetting the Palmerston Government; but consented to the requested interview and declared he would go to the length of officially informing the British Ministry that France was very ready to discuss the advisability of recognizing the South[1082].

This was good news. June 22, Slidell received a note from Mocquard stating that Baron Gros, the French Amba.s.sador at London, had been instructed to sound Russell. Meanwhile, Roebuck and Lindsay had hurried to Paris, June 20, saw Napoleon and on the twenty-fifth, Slidell reported that they were authorized to state in the House of Commons that France was ”not only willing but anxious to recognize the Confederate States with the co-operation of England[1083].” Slidell added, however, that Napoleon had not promised Roebuck and Lindsay to make a formal proposal to Great Britain. This rested on the a.s.surances received by Slidell from Mocquard, and when Mason, who had let the a.s.surance be known to his friends, wrote that Russell, replying to Clanricarde, on June 26, had denied any official communication from France, and asked for authority from Slidell to back up his statements by being permitted to give Roebuck a copy of the supposed instruction[1084], he received a reply indicating confusion somewhere:

”I called yesterday on my friend at the Affaires Etrangeres on the subject of your note of Sat.u.r.day: he has just left me.

M.D. de Lh. will not give a copy of his instructions to Baron Gros--but this is the substance of it. On the 19th he directed Baron Gros to take occasion to say to leading Members of Parliament that the Emperor's opinions on the subject of American affairs were unchanged. That he was disposed with the co-operation of England immediately to recognize the Confederate States; this was in the form of a draft letter, not a despatch. On the 22nd, he officially instructed the Baron to sound _Palmerston_ on the subject and to inform him of the Emperor's views and wishes. This was done in consequence of a note from the Emperor, to the Minister, in which he said, 'Je me demande, s'il ne serait bien d'avertir Lord Palmerston, que je suis decide a reconnaitre le Sud.' This is by far the most significant thing that the Emperor has said, either to me or to the others. It renders me comparatively indifferent what England may do or omit doing. At all events, let Mr. Roebuck press his motion and make his statement of the Emperor's declaration. Lord Palmerston will not dare to dispute it and the responsibility of the continuance of the war will rest entirely upon him. M. Drouyn de Lhuys has not heard from Baron Gros the result of his interview with Palmerston. I see that the latter has been unwell and it is probable that the former had not been able to see him. There can be no impropriety in Mr. Roebuck's seeing Baron Gros, who will doubtless give him information which he will use to advantage. I write in great haste; will you do me the favour to let Lord Campbell know the substance of this note, omitting that portion of it which relates to the Emperor's inclination to act alone. Pray excuse me to Lord Campbell for not writing to him, time not permitting me to do so[1085].”

This did not satisfy Mason; he telegraphed on the twenty-ninth, ”Can I put in hands of Roebuck copy of Mocquard's note brought by Corcoran[1086].” To which Slidell replied by letter:

”For fear the telegraph may commit some blunder I write to say that M. Mocquard's note, being confidential, cannot be _used in any way_. I showed it to Messrs. Roebuck and Lindsay when they were here and have no objection that they should again see it confidentially[1087].”

On June 29, Roebuck went to Baron Gros and received the information that no formal communication had been made to Russell. The next day in an effort in some way to secure an admission of what Mason and his friends believed to be the truth, Lord Campbell asked Russell in the House of Lords if he had received either a doc.u.ment or a verbal communication outlining Napoleon's desires. Russell replied that Baron Gros had told him ”an hour ago” that he had not even received any instruction to deliver such a communication[1088]. This was in the hours preceding the debate, now finally to occur in the Commons. Evidently there had been an error in the understanding of Napoleon by Slidell, Roebuck and Lindsay, or else there was a question of veracity between Russell, Baron Gros and Napoleon.

Roebuck's motion was couched in the form of a request to the Queen to enter into negotiations with foreign powers for co-operation in recognition of the Confederacy. Roebuck argued that the South had in fact established its independence and that this was greatly to England's advantage since it put an end to the ”threatening great power” in the West. He repeated old arguments based on suffering in Lancas.h.i.+re--a point his opponents brushed aside as no longer of dangerous concern--attacked British anti-slavery sentiment as mere hypocrisy and minimized the dangers of a war with the North, prophesying an easy victory for Great Britain. Then, warmed to the real attack on the Government Roebuck related at length his interview with Napoleon, claiming to have been commissioned by the Emperor to urge England to action and a.s.serting that since Baron Gros had been instructed to apply again to the British Cabinet it must be evident that the Ministry was concealing something from Parliament. Almost immediately, however, he added that Napoleon had told him no formal French application could be renewed to Great Britain since Russell had revealed to Seward, through Lyons, the contents of a former application.

Thus following the usual pro-Southern arguments, now somewhat perfunctorily given, the bolt against the Government had been shot with all of Roebuck's accustomed ”vigour” of utterance[1089]. Here was direct attack; that it was a futile one early became evident in the debate.

Lord Robert Montagu, while professing himself a friend of the South, was sarcastic at the expense of Roebuck's entrance into the field of diplomacy, enlarged upon the real dangers of becoming involved in the war, and moved an amendment in favour of continued British neutrality.

Palmerston was absent, being ill, but Gladstone, for the Government, while carefully avoiding expressions of sympathy for either North or South, yet going out of his way to pa.s.s a moral judgment on the disaster to political liberty if the North should wholly crush the South, was positive in a.s.sertion that it would be unwise to adopt either Roebuck's motion or Montagu's amendment. Great Britain should not _commit_ herself to any line of policy, especially as military events were ”now occurring” which might greatly alter the whole situation, though ”the main result of the contest was not doubtful.” Here spoke that element of the Ministry still convinced of ultimate Southern success.

If Gladstone's had been the only reply to Roebuck he and his friends might well have thought they were about to secure a ministerial change of front. But it soon appeared that Gladstone spoke more for himself than for the Government. Roebuck had made a direct accusation and in meeting this, Layard, for the Foreign Office, entered a positive and emphatical denial, in which he was supported by Sir George Grey, Home Secretary, who added sharp criticism of Roebuck for permitting himself to be made the channel of a French complaint against England. It early became evident to the friends of the South that an error in tactics had been committed and in two directions; first, in the a.s.sertion that a new French offer had been made when it was impossible to present proof of it; and second, in bringing forward what amounted to an attempt to unseat the Ministry without previously committing the Tories to a support of the motion. Apparently Disraeli was simply letting Roebuck ”feel out” the House. The only member of the Tory party strongly supporting him was Lord Robert Cecil, in a speech so clearly a mere party one that it served to increase the strength of ministerial resistance. Friends of the North quickly appreciated the situation and in strong speeches supported the neutrality policy of the Government.

Forster laid stress upon the danger of war and the strength of British emanc.i.p.ation sentiment as did Bright in what was, read to-day, the most powerful of all his parliamentary utterances on the American war. In particular Bright voiced a general disbelief in the accuracy of Roebuck's report of his interview with Napoleon, called upon his ”friend” Lindsay for his version[1090] of the affair, and concluded by recalling former speeches by Roebuck in which the latter had been fond of talking about the ”perjured lips” of Napoleon. Bright dilated upon the egotism and insolence of Roebuck in trying to represent the Emperor of France on the floor of the House of Commons. The Emperor, he a.s.serted, was in great danger of being too much represented in Parliament[1091].