144 



CONFEDERATE STATES. 



groes, houses, furniture, useless extravagance, 

 or luxuries, just put it in Confederate bonds. 



"But while I said it was not intended to 

 circulate or to pay debts, I have not the least 

 doubt that anybody who will sell his crop en- 

 tire for bonds, will find no difficulty in getting 

 the money for them, for they draw interest, 

 and are better than money ; and any man hold- 

 ing a note, will give it up and take a bond, for 

 a note draws but seven per cent., and this draws 

 eight. I have no doubt that all minors' and 

 trust property will soon be invested in it. The 

 entire amount of private funds in the State of 

 Georgia, on private loans, I suppose is ten or 

 twenty millions of dollars, at seven per cent. 

 All that amount will immediately find its way 

 into these bonds ; and hence a planter who sells 

 his entire crop, and needs money, can get it 

 from the money-lenders on these bonds. 



" I have been frequently asked if these bonds 

 were good. Well, I want to be equally frank 

 upon that point. If we succeed, if we establish 

 our independence, if we are not overridden, if 

 we are not subjugated, I feel no hesitancy in 

 telling you it is the best Government stock in 

 the world that I know of. It is eight per cent, 

 interest ; and if we succeed in a short time, in 

 a few years, if not more than one hundred mill- 

 ions or two hundred millions are issued, I have 

 but little doubt they will command a consider- 

 able premium. The old United States stock 

 (six per cent, bonds) five years ago commanded 

 fifteen and sixteen per cent., and went as high 

 as twenty per cent. Take the Central Rail- 

 road. The stock of that company commands 

 fifteen per cent, premium now. These bonds 

 pay eight per cent, semi-annually ; therefore, 

 if there is a short war, these bonds very soon 

 will command fifteen or twenty per cent. But 

 candor also compels me to state that if Lincoln 

 overruns us if we are subjugated, these bonds 

 will not be worth a single dime, and nothing 

 else you have will be worth any thing. If we 

 are overrun, they will be worth just as much 

 as any thing else you have, and nothing else 

 you have got will be worth any thing. So that 

 is the whole of it." 



To push forward the measure, a convention 

 of cotton-planters was held at Atlanta, at which 

 resolutions were passed expressing their willing- 

 ness to aid the Government with the entire 

 cotton crop, if the same should be needed for 

 its use, and recommending to the planters to 

 invest at least one-half of the proceeds of their 

 entire crops in the eight per cent, bonds of the 

 Confederate States, and to capitalists and others 

 having money to lend, that they invest in like 

 manner in these bonds. They also recom- 

 mended to Congress to authorize the issue of 

 Treasury notes of denominations suited for 

 circulation as currency, for an amount equal 

 to the exigencies of the Government, such 

 notes to be paid out as mony in payment 

 of all Government dues, and made receivable 

 for all taxes and duties, and convertible into 

 eight per cent, bonds of the Confederate 



States at the pleasure of the holder. Con- 

 gress, at its session at Richmond, in July, au- 

 thorized the issue of one hundred millions of 

 Treasury notes, and laid a direct tax, estimated 

 to produce about fifteen millions of dollars. 

 The Government thus had at its control for 

 financial purposes, a loan of fifteen millions, 

 authorized in February, duties on imports, 

 which yielded nothing worthy of consideration, 

 the authorized issue of Treasury notes to the 

 amount of one hundred millions, the direct 

 tax of fifteen millions assumed by the States, 

 and the loans on produce, of which cotton was 

 calculated to be the chief. The cotton would 

 not yield any thing until sold. These were the 

 authorized resources previous to November, 

 1861, to carry on a war, requiring the equip- 

 ment, and transportation, and maintenance of 

 an army of three hundred thousand men. 

 There was one source of help to the Confeder- 

 ate Government which has not been mentioned. 

 The States undertook to raise, and equip, and 

 pay, to a certain extent, the troops of each. 

 For this purpose the Legislatures authorized 

 loans, amounting from five hundred thousand 

 to two millions of dollars. With several of 

 them the prospect of borrowing on this author- 

 ized loan was hopeless. Arkansas authorized 

 her loan to be made available by issuing notes 

 of five dollars and upwards in amount. These 

 were paid to her soldiers and others, and de- 

 preciated until, as one of the former observed, 

 " a hatful was required to obtain a dollar in 

 specie." Tennessee authorized an almost un- 

 limited expansion by her bank, until its paper 

 depreciated like Arkansas State notes. In Vir- 

 ginia, military officers of State troops took from 

 the people whatever their forces required, and 

 gave a certificate of indebtedness upon the State 

 of Virginia. These measures strengthened the 

 Confederate Government for a period, by re- 

 ducing the demands upon it, but they rendered 

 more certain its ultimate bankruptcy. They 

 enfeebled the resources of the people, upon 

 which all Governments must rely. Upon the 

 people the operation was most disastrous. Spe- 

 cie disappeared. Paper money was issued by 

 a multitude of corporations and cities. It de- 

 preciated thirty per cent, compared with specie. 

 Nearly double in amount was now required to 

 purchase food, clothing, and other necessary 

 articles. Apart from the influence of the block- 

 ade in reducing the supply of such as were of 

 foreign manufacture, charges of extortion were 

 raised against dealers, and public meetings were 

 held to denounce them, which were composed 

 of citizens who were ignorant that the source of 

 all the evil consisted in the worthless currency. 

 The Governor of Tennessee sent a message to 

 the Legislature, relative to the extortions intro- 

 duced " by those who had at heart their own in- 

 terests more than the good of their fellow-mortals 

 and of the country." The subject was acted 

 upon by the Legislature. The Governor of Ala- 

 bama, in a message to the Legislature, denounced 

 the speculation that had commenced in articles 



