Each bond, at the option of the holder, was convertible at its nominal amount into cotton at the rate of sixpence sterling for each pound of cotton—say four thousand pounds of cotton for each bond of a hundred pounds, or twenty-five hundred francs; this could be done at any time not later than six months after the ratification of a treaty of peace between the belligerents.
Sixty days after the notice, the cotton was to be delivered, if in a state of peace, at the ports of Charleston, Savannah, Mobile, or New Orleans; if at war, at points in the interior of the country, within ten miles of a railroad, or a stream navigable to the ocean.
The delivery was to be made free of all charges, except the export duty of one-eighth of one cent per pound.
The quality of the cotton was to be the standard of New Orleans middling.
An annual sinking fund of five per cent was provided for, whereby two and a half per cent of the bonds unredeemed by cotton should be drawn by lot half-yearly, so