142 



CONTEDEKATE STATES. 



regular Conventions of each of the States, to 

 which it had been referred. This was the first 

 confirmation which the Government had re- 

 ceived. It came only from the State Con- 

 ventions, and its extent was to approve of the 

 existence of the Provisional Constitution and 

 Provisional Government, which were to remain 

 in force for one year, then to be supplanted 

 by a regular Constitution and officers duly 

 elected under it. 



At this session measures were taken to place 

 the finances of the Confederacy upon such a 

 basis as would enable it to meet the great 

 struggle at hand. Treasury notes were adopted 

 as a means of circulation. The first issue 

 authorized was made payable at the expiration 

 of twelve months. But at this session the time 

 of payment was extended until six months after 

 the close of the war. This currency drove all 

 other out of circulation, and became the only 

 medium of exchange in some of the Confederate 

 States. The discount on these notes for specie 

 was variable during the year, but often at thirty 

 per cent., and even more. To give the stamp 

 of value, and attract confidence to the financial 

 movements of the Government, it was neces- 

 sary to secure to it a substantial income. The 

 revenue from imports under a stringent block- 

 ade could not be calculated upon, and probably 

 would not equal the expenses of collection. 

 Direct taxes, if laid, could not be collected in 

 any amount sufficient to strengthen the credit 

 of the Government. The deposits in all the 

 banks of the Confederate States on the 20th of 

 March amounted to $75,000,000. A people 

 devoted to agriculture without the accumula- 

 tions of commerce have no resources but the 

 products of the land. Eich as the Southern 

 States may be when their crops of cotton, rice, 

 and tobacco are gathered and ready for mar- 

 ket, yet without a market these crops are of no 

 value. A strict blockade annihilated their 

 market, and destroyed any immediate value 

 these crops otherwise would have. Nothing 

 but credit remained, and to improve it a plan 

 was devised by Congress which proposed to 

 make cotton a basis of security. The plan was 

 that the planters should subscribe for the use 

 of the Government a certain sum of money 

 out of the proceeds of a certain number of bales 

 of cotton when sold. The planter was to re- 

 tain the cotton in his custody, and have the ex- 

 clusive right of declaring when he would sell 

 it and at what price it should be sold. By this 

 plan the Government would get nothing at 

 once, and there was room for many contingen- 

 cies whether it would ever get any thing. The 

 planter might become bankrupt and his cotton 

 be seized by creditors, or it might be surrep- 

 titiqusly disposed of. The Government received 

 nothing but an order on the commission agent 

 who might conduct the sale, to pay the Gov- 

 ernment the amount subscribed from the pro- 

 ceeds of sale, whenever he should receive the 

 cotton and effect its sale. In consequence of 

 the events of the last year there was not only 



no sale for the cotton, but it was kept from the 

 seaboard cities to prevent its falling into the 

 hands of their enemies. On the 20th of July 

 the subscriptions to the cotton loan merely, 

 exceeded fifty millions of dollars. Other ar- 

 ticles were afterwards included, and President 

 Davis speaks of the plan in these words : 

 "Scarcely an article required for the consump- 

 tion of our army is provided otherwise than by 

 subscription to the produce loan so happily de- 

 vised by the wisdom of Congress." This plan, 

 although it failed to produce money for the 

 Government, served to supply it liberally with 

 such articles as were necessary for the con- 

 sumption of the army. In each district or 

 county proper individuals were appointed to 

 solicit subscriptions. The instructions given 

 to them by the Secretary of the Treasury, Mr. 

 Mernminger, were as follows : 



" Sir : The Congress of the Confederate 

 States, at its last session, passed an act author- 

 izing the issue of bonds for the proceeds of the 

 sale of raw produce and manufactured articles. 



" It has been deemed advisable, in carrying 

 out this law, to circulate in advance lists for 

 subscription, in which every planter can indi- 

 cate the portion of his crop which he is dis- 

 posed to lend for the support of the Govern- 

 ment. It is proposed that no disturbance shall 

 be made of the usual arrangements of each 

 planter for selling his crop, but that he shall 

 simply indicate the portion he is willing to 

 subscribe, the time and place of delivery, and 

 the factor in whose hands it is placed for ^ale ; 

 and shall order the factor to exchange the pro- 

 ceeds of sale of the subscribed portion for Con- 

 federate bonds, bearing eight per cent, interest. 

 Several of these lists are herewith sent you, 

 and you are requested to act as commissioner 

 in bringing the same to the attention of the 

 people of your district or county. You will 

 use your discretion as to the best mode of 

 bringing the matter forward ; but it is suggested 

 that it would be desirable to use any public 

 occasion, and to induce as many gentlemen as 

 you can to make individual applications to their 

 fellow-citizens. As soon as you shall have pro- 

 cured as many signatures as you can to any 

 one list, you will please forward it to this De- 

 partment. To provide against loss of any list, it 

 is desirable that they should be signed in dupli- 

 cate, and forwarded by different mails." 



It remains to be seen what the fruits of this 

 measure will be,, so far as relates to placing in 

 the hands of the Government actual resources, 

 with which to pay its debts or to provide such 

 munitions of war as can be obtained only with 

 funds of value in foreign markets. The large 

 amount of cotton and tobacco subscribed, are 

 of no A r alue unless they can reach a market out- 

 side of the Confederate States. The Confed- 

 erate Congress sxibsequently recommended that 

 all these articles should be burned as the Fed- 

 eral armies approach. The object of this rec- 

 ommendation was to prevent the seizure and 

 sale of these articles by the Federal Government. 



