146 



CONFEDERATE STATES. 



value, less the amount of subscription cotton at $200,- 

 000,000 and the subscription at 50,000,000. The pur- 

 chase would then require 150,000,000 of Treasury 

 notes, and if to this sum be added the amount of value 

 for other agricultural products, which would certainly 

 claim the same benefit, the sum required would proba- 

 bly reach $175,000,000. 



The amount called for by the other plan of making 

 an advance would depend upon the proportion of that 

 advance. Few of the advocates of this plan have put 

 it lower than five cents per pound on cotton, and at 

 the same rate on other produce. It may, therefore, 

 be very fairly set down at about $100,000,000. 



If we consider, first, the least objectionable of these 

 plans, it is certainly that which requires the smaller 

 sum ; and if this be found impracticable, the larger 

 must of necessity be rejected. 



Our inquiry, then, may be narrowed down to a pro- 

 posal that the Government should issue one hundred 

 millions of Treasury notes, to be distributed among the 

 planting community upon the pledge of the forthcom- 

 ing crop. 



The first remarkable feature in this scheme is, that 

 it proposes that a new Government, yet struggling for 

 existence, should reject all the lessons of experience, 

 and undertake that which no Government, however 

 long established, has yet succeeded in effecting. The 

 "organization of labor" has called forth many ingen- 

 ious attempts, both speculative and practical, among 

 well-established Governments, but always with disas- 

 trous failure. With us, however, the experiment is 

 proposed to a new Government, which is engaged in a 

 gigantic war, and which must rely on credit to furnish 

 means to cany on that war. Our enemies are in pos- 

 session of all the munitions and work-shops that have 

 been collected during forty-five years of peace ; their 

 fleets have been built at our joint expense., "With all 

 these on hand, they yet are obliged to expend nearly 

 ten millions of dollars per week to carry on the war. 

 Can we expect to contend with them at less than half 

 that expenditure ? 



Suppose that it may require two hundred millions 

 of dollars, then the proposal is, that at a time when 

 we are called upon to raise this large sum for the sup- 

 port of the Government, we shall raise a further sum 

 of one hundred millions for the benefit of the planting 

 interests. For it must be observed, first, that the Gov- 

 ernment receives no benefit whatever from this ad- 

 vance. The money is paid to each individual planter ; 

 and, in exchange, the Government receives only his 

 bond or note ; or, if the cotton be pufchased, the Gov- 

 ernment receives only certain bales of cotton. That is 

 to say, the Government pays out money which is need- 

 ful to" its very existence, and receives in exchange plant- 

 er's notes or produce, which it does not need, and can- 

 not in any way make use of. 



It must be observed, in the next place, that Treas- 

 ury notes have now become the currency of the coun- 

 try. They are, therefore, the measures of value. In 

 this view, it is the duty of Government to limit their 

 issue, as far as practicable, to that amount which is 

 the limit of its currency. Every person acquainted 

 with this branch of political science is aware that, if 

 the currency passes this point, it not only becomes de- 

 preciated, but it disturbs the just relations of society, 

 precisely as though an arbitrary power should change 

 the weights and measures of a country. If the cur- 

 rency of a country should be suddenly extended from 

 one hundred to two hundred millions of dollars, that 

 which was measured by one dollar is now measured 

 by two, and every article must be paid for at double 

 its former price. The Government, from the necessi- 

 ties of war, is the largest of all purchasers, and thus, 

 by a kind of suicidal act, compels itself to pay two 

 dollars for what one would formerly have purchased, 

 and at this rate of advance two hundred millions of 

 dollars can effect no more than one hundred millions 

 of dollars would have effected before ; or, in other 

 words, one hundred millions of dollars are actually 

 lunk in the operation. 



Such a condition of the currency the Government 



has anxiously endeavored to guard against. The war 

 tax was laid for the purpose of creating a demand for 

 Treasury notes, and a security for their redemption. 

 Their redundancy has been carefully guarded against 

 by allowing them to be funded in eightper cent, bonds. 

 If necessity shall compel the Government to issue, for 

 the defence of the country, and to keep out two hun- 

 dred millions, it is plain that every accession must im- 

 pair and may defeat all the precautions. 



If the Government should undertake, for the sake of 

 private interests, so large an increase of issue, it may 

 hazard its entire credit and stability. The experiment 

 is too dangerous, and relief for the planters must be 

 sought in some other direction. And may not that 

 remedy be found? 



In the first place let the planters immediately take 

 measures for winter crops, to relieve the demand for 

 grain and provisions. Let them proceed to divert part 

 of their labor from cotton and make their own clothing 

 and supplies. Then let them apply to the great re- 

 source presented by the money capital in banks and 

 private hands. Let this capital come forward and 

 assist the agricultural interest. Heretofore_ the banks 

 have employed a large part of their capital in the pur- 

 chase of Northern exchange ; let them apply this por- 

 tion to factors' acceptances of planters' drafts, secured 

 by pledge of the produce in the planters' hands. An 

 extension of the time usually allowed on these drafts 

 would overcome most of the difficulties. This extension 

 could safely reach the probable time of sale of the 

 crops, inasmuch as the suspension of specie payments 

 throughout the entire Confederacy relieves each bank 

 from calls for coin. The banks are accustomed to 

 manage loans of this character, and will conduct the 

 operation with such skill as will make them mutually 

 advantageous. The amount of advance asked from 

 the banks would be greatly less than if advances were 

 offered by the Government, and all the abuses inci- 

 dental to Government agencies would be avoided. 



It seems to me, therefore, that it is neither necessary 

 nor expedient that the Government should embark 

 upon this dangerous experiment. It is far better that 

 each class of the community should endeavor to secure 

 its own existence by its own exertions, and if an effort 

 be at once made by so intelligent a class as the plant- 

 ers, it will result in relief. Delay in these efforts, oc- 

 casioned by vague expectations of relief from Gov- 

 ernment, which cannot be realized, may defeat that 

 which is yet practicable. C. G. MEMMlNGER, 



Secretary of the Treasury. 



At the same time that this circular was is- 

 sued, a commercial convention had assemhled 

 in Memphis, Tennessee. A series of resolu- 

 tions, expressing violent hostility to the North, 

 and demanding prohibitory legislation against 

 Northern trade, were presented before that 

 body, and voted down, or rejected under such 

 circumstances as were declared to mean that 

 a reconstruction of commercial and political 

 relations with the North was desired by a ma- 

 jority in that convention. 



The military spirit raised by President Lin- 

 coln's proclamation reached an indescribable 

 state of excitement during the months of April 

 and May. It was estimated that a honored 

 thousand men were then organized, armed, and 

 awaiting orders from the Confederate Govern- 

 ment, in the seven States which first seceded. 

 In Virginia sixty thousand were under arms. 

 This number included the troops from the other 

 States, together with the militia of Virginia. 

 This latter class were ready and disposed, in all 

 parts of the State except the western, to turn 

 out almost en masse. This enthusiasm, the 

 prosperous condition of the people generally, 



