454 NortH Carotina Troops, 1861-’65.

ton bonds until about 1 May, 1863. I deem it proper to
state the cause of this delay. It proceeded from a request on
the part of the Hon. J. M. Mason, the Commissioner for the
Confederate States at London, not to put the bonds in market
at an earlier period, because, in his opinion, the putting them
in market sooner than that time would interfere with the sale
of the Confederate cotton bonds then being brought out. I
considered it proper in itself, and believed it would be in
accordance with your wishes to comply with this request,
and I acted acordingly. About 1 May, 1863, I sold at Lon-
don and Manchester, nine hundred and ninety-nine (999)
cotton bonds or warrants, as they are called, at one hundred
pounds each, amounting in all to ninety-nine thousand nine
hundred pounds (£99,900). Of the fifteen hundred cotton
bonds issued by me only those above mentioned have been sold
and those sold are numbered from 1 to 999. The bonds
numbered from 1000 to 1395, were deposited with Alex’r
Collie & Co., in the Manchester & County Bank, Manchester,
where they are now. The bond numbered 1396 was re-
turned by me to the State as a sample. The bonds numbered
1397 to 1500 were deposited with Isaacs & Samuel, of Lon-
don, as a security for a contract entered into between them
and myself aeting through Alex. Collie & Co. All the bonds
issued by me were obligations which after having acknowl-
edged the payment to the State of North Carolina of one hun-
dred pounds, bound her to deliver to the holder thereof twelve
bales of cotton weighing 400 pounds each; ginned, packed
and in sound merchantable condition at the port of Wilming-
ton, Charleston or Savannah, or if practicable, at any other
port in possession of the Confederate States Government, ex-
cept the ports of Texas, on receiving sixty days notice of the
port at which delivery is required, said bonds bear interest
at the rate of 7 per cent. per annum, payable half yearly in
Manchester and reckoned from the first of July, 1863. Said
bonds contain other provisions as to the quality of the cot-
ton, the notice and other particulars, but I do not deem it
necessary to enter into any farther explanation concerning
them inasmuch as a copy of one of them is in the possession
of your Excellency. Before making sale of any of the bonda

N. C. Frnancrat Operations in ENGLAND. 455

I endeavored to secure the services of Messrs. de Erlanger &
Co., who were charged with the negotiation of the Confed-
erate cotton loan, but was unable to do so without paying
them a higher rate of commission than I deemed advisable.
After failing to secure their services, I employed Messrs.
Alex. Collie & Co. to negotiate the sale of the bonds for 5
per cent. commissions, with the understanding that I was to
pay the solicitor’s fees and bank commissions. In making
my arrangements as to the sale of the cotton, I obtained the
best terms for the State that I was able to do, and resorted
to no agency which was not necessary in England to thé
proper transaction of business of the kind. I made no con-
tract for the sale of cotton except that for which bonds were
given. I also carried with me to England five hundred thou-
sand dollars of State bonds, bearing 8 per cent. interest. Of
these bonds twenty thousand dollars were deposited with Cap-
tain T. J. Hughes as collateral security for a loan from him
to the State for two thousand and eighty-three pounds, six
shillings and eight pence (£2,083.6.8). I have passed to his
credit in the Bank of England, money enough to pay him the
amount lent and interest. He has not returned the same
bonds, but has purchased others on the State for a like
amount and delivered them up to the treasurer, which ar-
rangement has been entirely satisfactory to that officer, as
will appear from the receipt of Mr. Worth dated 20 April,
1864. The balance of said bonds were deposited with Alex.
Collie & Co., and others as trustees for the faithful perform-
ance of the contract on the part of the State for the delivery
of the cotton hereinbefore mentioned. You also sent me one
million of dollars of North Carolina bonds, in accordance
with my request made in a letter dated 20 May, 1863.

“Tn order to secure the performance of a cotton contract on
the part of the State which I expected would be shortly en-
tered into at the time I wrote. At the date of my letter I
expected to negotiate a sale of cotton bonds to the amount of
three hundred thousand pounds (£300,000), and to deposit
one million five hundred thousand dollars ($1,500,000) at. par
of the bonds of the State with trustees to secure it, but I was
only able to negotiate a sale to the amount of ninety-nine