Confederate feeling, as it cooled toward England, warmed toward France. Napoleon's Mexican scheme, including the offer of a ready-made imperial crown to Maximilian, the brother of the Emperor of Austria, was fully understood at Richmond; and with Napoleon's need of an American ally, Southern hope revived. It was further strengthened by a pamphlet which was translated and distributed in the South as a newspaper article under the title France, Mexico, and the Confederate States. The reputed author, Michel Chevalier, was an imperial senator, another member of the Napoleon ring, and highly trusted by his shifty master. The pamphlet, which emphasized the importance of Southern independence as a condition of Napoleon's "beneficent aims" in Mexico, was held to have been inspired, and the imperial denial was regarded as a mere matter of form.

What appeared to be significant of the temper of the Imperial Government was a decree of a French court in the case of certain merchants who sought to recover insurance on wine dispatched to America and destroyed in a ship taken by the Alabama. Their plea was that they were insured against loss by "pirates." The court dismissed their suit and assessed costs against them. Further evidence of Napoleon's favor was the permission given to the Confederate cruiser Florida to repair at Brest and even to make use of the imperial dockyard. The very general faith in Napoleon's promises was expressed by Davis in his message to Congress in December: "Although preferring our own government and institutions to those of other countries, we can have no disposition to contest the exercise by them of the same right of self-government which we assert for ourselves. If the Mexican people prefer a monarchy to a republic, it is our plain duty cheerfully to acquiesce in their decision and to evince a sincere and friendly interest in their prosperity.… The Emperor of the French has solemnly disclaimed any purpose to impose on Mexico a form of government not acceptable to the nation.…" In January, 1864, hope of recognition through support of Napoleon's Mexican policy moved the Confederate Congress to adopt resolutions providing for a Minister to the Mexican Empire and giving him instructions with regard to a presumptive treaty. To the new post Davis appointed General William Preston.

But what, while hope was springing high in America, was taking place in France? So far as the world could say, there was little if anything to disturb the Confederates; and yet, on the horizon, a cloud the size of a man's hand had appeared. M. Arman had turned to another member of the Legislative Assembly, a sound Bonapartist like himself, M. Voruz, of Nantes, to whom he had sublet a part of the Confederate contract. The truth about the ships and their destination thus became part of the archives of the Voruz firm. No phase of Napoleonic intrigue could go very far without encountering dishonesty, and to the confidential clerk of M. Voruz there occurred the bright idea of doing something for himself with this valuable diplomatic information. One fine day the clerk was missing and with him certain papers. Then there ensued a period of months during which the firm and their employers could only conjecture the full extent of their loss.

In reality, from the Confederate point of view, everything was lost. Again the episode becomes too complex to be followed in detail. Suffice it to say that the papers were sold to the United States; that the secret was exposed; that the United States made a determined assault upon the Imperial Government. In the midst of this entanglement, Slidell lost his head, for hope deferred when apparently within reach of its end is a dangerous councilor of state. In his extreme anxiety, Slidell sent to the Emperor a note the blunt rashness of which the writer could not have appreciated. Saying that he feared the Emperor's subordinates might play into the hands of Washington, he threw his fat in the fire by speaking of the ships as "now being constructed at Bordeaux and Nantes for the government of the Confederate States" and virtually claimed of Napoleon a promise to let them go to sea. Three days later the Minister of Foreign Affairs took him sharply to task because of this note, reminding him that "what had passed with the Emperor was confidential" and dropping the significant hint that France could not be forced into war by "indirection." According to Slidell's version of the interview "the Minister's tone changed completely" when Slidell replied with "a detailed history of the affair showing that the idea originated with the Emperor." Perhaps the Minister knew more than he chose to betray.

From this hour the game was up. Napoleon's purpose all along seems to have been quite plain. He meant to help the South to win by itself, and, after it had won, to use it for his own advantage. So precarious was his position in Europe that he dared not risk an American war without England's aid, and England had cast the die. In this way, secrecy was the condition necessary to continued building of the ships. Now that the secret was out, Napoleon began to shift his ground. He sounded the Washington Government and found it suspiciously equivocal as to Mexico. To silence the French republicans, to whom the American minister had supplied information about the ships, Napoleon tried at first muzzling the press. But as late as February, 1864, he was still carrying water on both shoulders. His Minister of Marine notified the builders that they must get the ships out of France, unarmed, under fictitious sale to some neutral country. The next month, reports which the Confederate commissioners sent home became distinctly alarming. Mann wrote from Brussels: "Napoleon has enjoined upon Maximilian to hold no official relations with our commissioners in Mexico." Shortly after this Slidell received a shock that was the beginning of the end: Maximilian, on passing through Paris on his way to Mexico, refused to receive him.

The Mexican project was now being condemned by all classes in France. Nevertheless, the Government was trying to float a Mexican loan, and it is hardly fanciful to think that on this loan the last hope of the Confederacy turned. Despite the popular attitude toward Mexico, the loan was going well when the House of Representatives of the United States dealt the Confederacy a staggering blow. It passed unanimous resolutions in the most grim terms, denouncing the substitution of monarchical for republican government in Mexico under European auspices. When this action was reported in France, the Mexican loan collapsed.

Napoleon's Italian policy was now moving rapidly toward the crisis which it reached during the following summer when he surrendered to the opposition and promised to withdraw the French troops from Rome. In May, when the loan collapsed, there was nothing for it but to throw over his dear friends of the Confederacy. Presently he had summoned Arman before him, "rated him severely," and ordered him to make bona fide sales of the ships to neutral powers. The Minister of Marine professed surprise and indignation at Arman's trifling with the neutrality of the Imperial Government. And that practically was the end of the episode.

Equally complete was the breakdown of the Confederate negotiations with Mexico. General Preston was refused recognition. In those fierce days of July when the fate of Atlanta was in the balance, the pride and despair of the Confederate Government flared up in a haughty letter to Preston reminding him that "it had never been the intention of this Government to offer any arguments to the new Government of Mexico … nor to place itself in any attitude other than that of complete equality," and directing him to make no further overtures to the Mexican Emperor.

And then came the débâcle in Georgia. On that same 20th of September when Benjamin poured out in a letter to Slidell his stored-up bitterness denouncing Napoleon, Davis, feeling the last crisis was upon him, left Richmond to join the army in Georgia. His frame of mind he had already expressed when he said, "We have no friends abroad."