MEMMINGER, Secretary of the Treasury to James Spence , Esq., Liverpool, Great Britain, October 21, 1862

Mr. Memminger to Mr. Spence.

Sir: As you have been appointed financial agent for the Confederate States, and Messrs. Fraser, Trenholm & Co. are its depositaries under our law, I desire that you would confer together on the matter submitted by this letter.

I have on hand gold and silver coin, (chiefly the former,) two and a half millions of which I desire to apply in payment of articles purchased in England by our agents for the use of the confederate government. We find it impossible to purchase a sufficient amount of exchange for these purposes, and the small amount to be had is at such high rates that it would be desirable to furnish a substitute. I propose, therefore, to make payment for purchases by a transfer to the creditor of so much of this coin as may be requisite. I presume that when the coin thus becomes bona fide the property of a British subject, that the British government would, at his instance, permit any of its vessels to bring over the same for him. If this expectation be realized, the coin here would be as valuable as exchange, and in England would probably realize its mint value, less freight and insurance.

To enable you to carry out any arrangement you may deem advisable, Messrs. Fraser, Trenholm & Co. are authorized to make an absolute transfer of the coin, or to draw bills for the same on E. C. Elmore, esq., treasury, payable here, and a copy of this letter is sent to each of you that you may act in concert, and give us the benefit of your united counsel.

I am remitting, by opportunities as they occur, the bonds of the Confederate States, the proceeds of which, when sold, are intended to be applied to the contracts, of which you have been advised.

Respectfully, your obedient servant,