CONFEDERATE STATES. 



145 



of first necessity. The Governors of Georgia, 

 Louisiana, and Mississippi, requested the atten- 

 tion of their respective Legislatures to this sub- 

 ject of complaint. It was urged at Richmond 

 that the Confederate Government should make 

 it treason, and punishable by death, for any 

 one to ask or receive a percentage for exchang- 

 ing one sore of money for another, whether it 

 was specie for paper, or one sort of paper for 

 another ; that every State in the Confederacy 

 should receive at par any paper money lawfully 

 issued by any corporation or individual within 

 its jurisdiction ; that the " public funds and se- 

 curities " should be used to redeem any paper 

 money in the Confederacy ; and that every 

 hank in the Confederacy should be forced' to 

 redeem the bills of every other bank. Those 

 must be fearful evils from which an escape is 

 sought by such means. 



The following is a copy of one of the Treas- 

 ury Notes of the Government : 



'Six months after the 

 of a treaty of peace 



tie Confederate ^ 



nd the United 



ratification 

 ~ between! OA 

 *1>. States! ^J 



V> Sfes 



5^ 



~s- 



Fern, with sickle. 

 ^ Do. horn of plenty. 

 C* 1 Do. quadrant. 



AMERICA A 



No. 13,160. 

 pay TWENTY DOLLAES 



to Bearer. 

 EICHMOXD, VA., Sept. 2, 1861. 



J. HOOD, for Treasurer. 

 C. C. THAYEE, 



for Register. 



Hover Jc Ladwig^, Kichniond. 



To obtain some relief from their embarrass- 

 ments, the planters applied to the Government. 

 The office of the produce loan was burdened 

 with their letters suggesting and requesting 

 modes of relief under the conditions of their 

 subscriptions to the Government. Nearly all 

 of these letters gave the same account of the 

 necessities of the planting interest, and held 

 out the certain prospect of large additions to 

 the subscriptions to the loan in case the Gov- 

 ernment should make small advances suitable 

 to the actual necessities of the planters. In 

 reply, the Secretary of the Treasury addressed 

 a circular to the commissioners of subscription 

 under date of October 17th, which presents a 

 more distinct view of the condition of the Con- 

 federate Treasury. It shows that the Govern- 

 ment wanted credit exceedingly ; that its prom- 

 issory notes supplanted all others ; that it was 

 carrying on a war for existence on credit, and 

 the sole wonder was that it should be so suc- 

 cessful as it had, up to that time, been. Nor 

 was the condition of the planters much better. 

 As they were to lend to the Government some- 

 thing hereafter, they asked the Government to 

 lend them something now to carry them over 

 the trying interval previous to the sale of their 

 cotton. The circular was as follows : 

 10 



To the Commission erg Appointed to Receive 



Bubtenptiotu to the Produce Loan: 



GENTLEMEN : Inquiries have been made from various 

 quarters : 



1. Whether, during the continuance of the blockade, 

 any efforts should be made to procure further subscrip- 

 tions. 



2. Whether the Government will authorize promises 

 to be held out of aid to the planters as an inducement 

 to such further subscriptions. 



The first inquiry seems to imply a misunderstanding 

 of the scheme of the subscriptions. Many persons have 

 supposed that the Government was to have some con- 

 trol of the produce itself; others that the time of sale 

 appointed by the subscription was to be absolute and 

 unconditional. The caption at the head of the lists, 

 when examined, will correct both these errors. 



The subscription is confined to the proceeds of sales, 

 and contains an order on the commission merchant or 

 factor of the planter to pay over to the Treasurer the 

 amount subscribed in exchange for Confederate bonds. 

 The transaction is simply an agreement by the planter 

 to lend the Government so much money, and in order 

 to complete the transaction, a time and place are ap- 

 pointed when the parties may meet to carry it out. 

 The important point is that it shall certainly be com- 

 pleted at some time, and that is secured by the en- 

 gagement of the planter. Whether that time be De- 

 cember or June is simply a question of convenience, 

 and works no injury to either party. The Govern- 

 ment is sure of the eventual payment, and derives 

 from that certainty so much credit ; and it loses noth- 

 ing, because it gives its bond only when the money is 

 paid. 



It is obvious, therefore, that the subscriptions are as 

 valuable to the Government during the blockade as 

 after it. The blockade simply suspends the comple- 

 tion of the engagement. It becomes the interest of 

 both parties to wait for a good price, and the Govern- 

 ment will readily consent to a postponement of the 

 sale. 



You perceive, therefore, that it is desirable to con- 

 tinue your exertions to increase the subscriptions, and 

 you are authorized to say that the Government will 

 consent to a reasonable extension of the time appointed 

 for sale- 



3. The next inquiry is as to a promise of material aid 

 from the Government to the planters. 



In answering this inquiry I am to speak in advance 

 of any act of Congress. What that body may see fit 

 to do is not for me to determine. I can merely express 

 the views of the Department ; these must govern your 

 actions until reversed by a higher authority. It would 

 be a sufficient answer to the inquiry to say that the 

 action of the Government is settled by the Constitu- 

 tion. No power is granted to any Department to lend 

 money for the relief of any interest. Even the power 

 of Congress, in relation to money, is confined to bor- 

 rowing, and no clause can be found which would sanc- 

 tion so stupendous a scheme as purchasing the entire 

 crop with a view to aid its owners. 



But it may be said that the Constitution of the Pro- 

 visional Government may be altered by Congress, and 

 it is the duty of this Department to prepare the way 

 for such alteration, if in its judgment the financial 

 necessities of the country demand the change. I am 

 not disposed, then, to close the inquiry with the ab- 

 rupt denial thus made by the Constitution, and will 

 proceed to consider the subject upon its intrinsic 

 merits. 



Two plans of relief have been proposed: 



The one is that the Government should purchase the 

 entire crop of the country ; the other that an advance 

 should be made of part of its value. In either case the 

 payment is to be made by the issuance of Treasury 

 notes ; and, therefore, if we put aside for the present 

 the many and serious objections to the possession, 

 transportation, and management of the crop by the 

 Government, it becomes simply a question of amount. 

 To purchase the whole crop would require its whole 



