the next year. England and Russia had both declined to
participate in Napoleon's scheme, and their refusal marks the
beginning of the end of the reign of King Cotton.

At Paris, Slidell was even more hopeful than Mason. He had won
over Emile Erlanger, that great banker who was deep in the
confidence of Napoleon. So cordial became the relations between
the two that it involved their families and led at last to the
marriage of Erlanger's son with Slidell's daughter. Whether owing
to Slidell's eloquence, or from secret knowledge of the Emperor's
designs, or from his own audacity, Erlanger toward the close of
1862 made a proposal that is one of the most daring schemes of
financial plunging yet recorded. If the Confederate Government
would issue to him bonds secured by cotton, Erlanger would
underwrite the bonds, put the proceeds of their sale to the
credit of the Confederate agents, and wait for the cotton until
it could run the blockade or until peace should be declared. The
Confederate Government after some hesitation accepted his plan
and issued fifteen millions of "Erlanger bonds," bearing seven
percent, and put them on sale at Paris, London. Amsterdam, and
Frankfort.

As a purchaser of these bonds was to be given cotton eventually
at a valuation of sixpence a pound, and as cotton was then
selling in England for nearly two shillings; the bold gamble
caught the fancy of speculators. There was a rush to take up the
bonds and to pay the first installment. But before the second
installment became due a mysterious change in the market took
place and the price of the bonds fell. Holders became alarmed and
some even proposed to forfeit their bonds rather than pay on May