The sole purpose of these earlier operations was to provide funds for Southern agents.

By July, 1862, Bullock had exhausted his earlier credit of a million dollars.

The L60,000 loan secured through Lindsay then tided over an emergency demand and this had been followed by a development on similar lines of the "cotton certificates" and "warrants" which by December, 1862, had secured, through Spence's agency, an additional million dollars or thereabouts.

Mason was strongly recommending further expansion of this method and had the utmost confidence in Spence.

Now, however, there was broached to the authorities in Richmond a proposal for the definite floating in Europe of a specified "cotton loan." This proposal came through Slidell at Paris and was made by the well-established firm of Erlanger & Company.