252 



CONFEDERATE STATES. 



blockade became very rigid. The war tax was 

 paid in by the several States about as follows : 



North Carolina $1,400,000 00 



Virginia 2,125,000 00 



Louisiana 2,500,000 00 



Alabama 2,000,000 00 



Georgia 434,126 12 



Florida 225,374 11 



Mississippi 1,484,467 67 



Total $10,168,967 90 



The State of Georgia has substantially paid 

 in the balance due by her, and the State of 

 South Carolina paid the whole amount due by 

 her into the Treasury, in the form of 6 per 

 cent, call certificates. The States of Alabama 

 and Louisiana paid their taxes in advance. 



Thus the whole amount of funded debt at that 

 date was a little over 37 millions. The balance 

 was mostly due on demand serving for money, 

 and authority then existed to issue 20 millions 

 more paper under the law. Under this opera- 

 tion the depreciation of the currency was fur- 

 ther marked by the prices of commodities. 

 Some of the quotations were in Richmond as 

 follows : gold 140 per cent., equal to 42 cents 

 per dollar for paper. Flour was $14.50 in paper, 

 or $6 in specie ; corn $2 in paper, or 80 cents 

 in specie; wheat $3.30 in paper, or $1.30 

 specie ; rye $2.50 in paper, or $1 specie ; but- 

 ter $1 in paper, or 42 cents specie ; wool $1 in 

 paper, or 42 cents specie ; coffee (Rio) $2 paper, 

 or 84 cents .specie ; brown sugar was 65 cents 

 paper, or 26 cents specie. For those articles 

 like flour and grain, of which the South is usu- 

 ally an exporter, the prices were not higher 

 than at the North, measured in specie ; but for 

 those of which she is usually an importer the 

 dearth of supply was greatly aggravated by the 

 depreciation of paper. Nevertheless prices 

 were very unequal even in home produce. 

 Thus while flour was $14.50 in Virginia, it was 

 $30 in Georgia. At the same time shirtings 

 and sheetings were selling at 60 cents, equal to 

 24 cents in specie, or not more than the price 

 in New York at that time. One cause of the 

 higher price of flour in North Carolina and 

 Georgia was the fact that the millers had de- 

 pended on Virginia wheat, and the Govern- 

 ment of that State prohibited its export, and 

 the usual transfer of flour was checked. Salt, on 

 the other hand, was at 26 cents paper, 10 cents 

 specie. The occupation of the Kanawha by the 

 forces under Gen. Loring, produced in October 

 great activity to obtain supplies of salt sufficient 

 for all the purposes of preserving the fall meats, 

 from the Kanawha salines. These works, in 

 the immediate neighborhood of Charleston, the 

 county seat of Kanawha, produce annually an 

 immense quantity of salt, and many hundred 

 thousands of bushels were on hand at the time 

 of the evacuation of Charleston by the Union 

 troops. Long trains of wagons started for the 

 salines from points as far distant as Staunton 

 and Buchanan, and at one time three hund- 

 red wagons were awaiting at Gauley Ferry 

 their turn to cross the river. "When the Con- 

 federates first entered Charleston the salt was 



offered for thirty-five cents the bushel ; but 

 under the stimulus of the rapid demand for the 

 article from abroad, it very speedily rose to one 

 dollar a bushel. A great demand also sprung 

 up for the Louisiana rock salt. 



These prices give some idea of the utter de- 

 rangement of the currency under the continued 

 issues of paper for which there seemed to be no 

 remedy. Since August 1, the appropriations 

 outstanding and estimates for expenses for 5 

 months up to Jan. 1, 1863, reached $209,550,- 

 487. To supply this amount there was no re- 

 source but the issue of paper money, which 

 might be changed by the holders into 7,% bonds, 

 receivable for dues, 6 per cent, certificates, 

 payable on demand in currency, or 8 per cent, 

 bonds, redeemable in from 10 to SOyears. The 

 privilege of funding in the 8 per cent, bonds 

 was to cease April 22, 1863, in order to hurry 

 the conversion. After that date the holder 

 would only get 7 per cent, bonds. 



The following official notices indicate the 

 uses of the several classes of paper : 



TREASURY DEPARTMENT, RICHMOND, Aug. 1, 1862. 

 JOHN BOSTON, Esq., Depositary, Savannah. 



SIR : In answer to the inquiries of the 25th ult. you 

 can say : 



1. That the 7.30 interest notes will at any time 

 be accepted in exchange for eight per cent. Con- 

 federate bonds, or for any debt due the Government, 

 and that interest will be allowed as well as principal. 



2. That I shall recommend that Congress pay an- 

 nually the interest due on these notes to the respective 

 holders thereof on the 1st of January. 



3. That the six per cent, call certificates cannot be 

 issued for these interest bearing notes, because such 

 certificates are payable on demand in general Treasury 

 notes of every denomination. 



4. The 7.30 notes may be issued in exchange for the 

 six per cent, call certificates. Such exchange effects 

 directly what the holder of the certificates may do in- 

 directly by calling for payment of his certificate in 

 current notes, and then exchanging them for interest 

 notes. 



5. The purpose intended by the issue of interest 

 bearing notes is to take them out of the general circu- 

 lation. This is effected by the fact that a circulation 

 of interest takes place at every transfer. It is not ex- 

 pected, therefore, that they will pass into the general 

 deposits or circulation of the banks. In passing them 

 from hand to hand, the interest grows each day by an 

 easy calculation of two cents on each hundred dollar 

 note, until the end of the year, when the interest will 

 be paid up, if Congress shall accept my recommenda- 

 tion. With much respect, 



C. G. MEMM1NGER, Secretary of Treasury. 



TBIASTJ-BY DEPARTMENT, C. S. A., RICHMOND, ) 



Jfov. 6, 1862. I 



DEAR SIR : Your letter of the 3d instant inquires 

 whether " deposits made under the call loan can be 

 funded on or before next April in the eight per cent, 

 bonds." The conclusion of the department is, that the 

 certificates of deposits issued under the six per cent, 

 call loan entitle the holders to the same rights which 

 they would have if they held the notes which had been 

 deposited. It follows that certificates issued in ex- 

 change for the present issues of Treasury notes can be 

 funded in eight per cent, bonds at any time on or be- 

 fore the 22d of April next, and up to that date this 

 privilege will be the same, whether the certificates are 

 issued before or after the 1st day of December next. 

 Certificates which shall be taken for the deposit of new 

 Treasury notes, to be issued after the first of December 



