 In Paris , Slidell had been approached by the banking firm Erlanger et Cie . The company offered to float a loan to benefit the Confederacy . The proposed terms provided a large commission to Erlanger and would entitle the bondholder to cotton at a discounted price once the South won the war . Baron Frederic Emile d 'Erlanger , head of the firm , journeyed to Richmond in early 1863 , and negotiated with Benjamin , although the transaction properly fell within the jurisdiction of Treasury Secretary Memminger . The banker softened the terms somewhat , though they were still lucrative for his firm . Benjamin felt the deal was worth it , as it would provide the Confederacy with badly needed funds to pay its agents in Europe . 
