Reading this passage in Chandler made me wonder how familiar Faulkner was with the Napoleonic wars and was this the source for his Major de Spain (Campaigns of Napoleon, pp.702):
One notable casualty was the brave cuirassier commander, General d’Espagne, killed by an Austrian saber stroke, a grievous loss to the French cavalry.
(This refers to Jean-Louis-Brigitte Espagne at the battle of Aspern-Essling). Cursory searches for “Major de Spain General d’Espagne” in Google and JSTOR turn up nothing obvious nor does “Faulkner Napoleon.”
If the reference is intended, I would say it is also intended to be ironical, with many levels of comedic difference between the persons of Major de Spain (absurdly American) and General d’Espagne (authentic, heroic, European), — the transliteration itself suggests as much– though I must say, I don’t have a clear memory of the fictional de Spain just now.