Mr. Dayton to Mr. Seward, March 27, 1863

Mr. Dayton to Mr.
Seward

Sir: That £3,000,000 loan to the confederates
has been taken up, as you will have seen before this, in England alone;
the subscription, as is alleged, very much over-running the amount
required. The name of Erlanger & Co., of Frankfort and of Paris,
&c., would seem to have been used as a thin veil to cover the real
transaction. I have been informed by parties here that little, if any,
of this loan has been taken out of England, and it is believed to have
been taken there principally as a means of giving shape and a seeming
security to claims against the confederates already existing or
contracted for. This is most probable. Some of our bankers and business
men here believe the whole loan a pretence, and that nothing has been or
will be advanced upon it. But the preceding suggestion is probably the
true one.

I am, sir, your obedient servant,