310 



FINANCES OF THE UNITED STATES. 



ordinary times would realize $400,000,000 per 

 annum, was no longer available. Hence it 

 was determined that the Northern debts 

 should not be paid. The following is the text 

 of the act on this subject, passed by the Con- 

 federate Congress : 



An Act to authorize certain Debtors to pay the Amount 

 due by them into the Treasury of the Confederate States. 



Section 1. The Congress of the Confederate States 

 of America do enact, that all persons in any manner 

 indebted to individuals, or corporations, in the United 

 States of America, (except the States of Delaware, 

 Maryland, Kentucky, and Missouri, and the District of 

 Columbia,) be and are hereby prohibited from paying 

 the same to their respective creditors, or their agents or 

 assignees, pending the existing war waged by that 

 Government against the Confederate States, or any of 

 the slaveholding States before named. 



Sec. 2. Any person indebted as aforesaid shall be, 

 and is hereby authorized to pay the amount of his in- 

 debtedness into the Treasury of the Confederate States, 

 in specie or treasury notes, and shall receive from the 

 Treasurer a certificate, countersigned by the Register, 

 showing the amount paid, and on what account, and 

 the rate of interest which the same was bearing. 



Sec. 3. Such certificate shall bear like interest with 

 the original contract, and shall be redeemable at the 

 close of the war and the restoration of peace, in specie 

 or its equivalent, on presentation of the original cer- 

 tificate. 



Sec. 4. All laws and parts of laws militating against 

 this act, be and the same are hereby repealed. 



HOWELL COBB, President of the Congress. 



Approved May 21, 1861. 



JEFFERSON DAVIS. 



The Confederate Congress passed a law 

 authorizing $100,000,000 treasury notes, pay- 

 able six months after the ratification of a treaty 

 of peace between the Confederate States and 

 the United States. The notes not less than five 

 dollars, to be reissuable at pleasure, to be re- 

 ceived in payment of all public dues, except 

 the export duty on cotton, and the whole issue 

 outstanding at one time is not to exceed one 

 hundred millions of dollars. 



There were also issued bonds payable with- 

 in twenty years, 8 per cent, interest, to the 

 amount of $100,000,000, for the purpose of 

 funding the treasury notes, or for the purchase 

 of specie, military stores, etc. The bonds are not 

 less than $100, except when the subscription is 

 for a less amount, when they may be issued as 

 low as $50. 



Many of the banks had come forward with 

 efforts to give the bonds currency, and the 

 banks of Charleston adopted the following : 



Resolved, That this bank will credit the Secretary of 

 the Treasury with the sum of $1,000,000, at the rate of 

 six per bent, per annum, secured by large treasury 

 notes, and to be convertible into eight per cent, bonds 

 of the Confederate States, at the option of the holders. 



There was, for the special purpose of paying 

 the principal and interest of the public debt, 

 and of supporting the Government, a war tax 

 of fifty cents upon each one hundred dollars in 

 value of the following property in the Con- 

 federate States, namely : real estate of all 

 kinds; slaves; merchandise; bank stocks; rail- 

 road and other corporation stocks; money at 

 interest, or invested by individuals in the pur- 

 chase of bills, notes, and other securities for 



money, except the bonds of the Confederate 

 States of America, and cash on hand, or on de- 

 posit in bank or elsewhere ; cattle, horses and 

 mules; gold watches, gold and silver pkte; 

 pianos and pleasure carriages: the taxable 

 property of a family, of value less than five 

 hundred dollars, shall be exempt from taxation. 



On the 3d of June the banks held a conven- 

 tion at Atlanta, Ga. Delegates were in at- 

 tendance from Tennessee, Georgia, South Car- 

 olina, Alabama, and Florida, representing some 

 twenty-six banking institutions. 



Mr. G. B. Lamar, of Georgia, was chosen 

 President, and Mr. James S. Gibbs, of South 

 Carolina, Secretary. 



After full discussion, the following resolutions 

 were unanimously adopted : 



Resolved, That this Convention do recommend to all 

 the banks of the Southern Confederacy to receive in 

 payment of all dues to them the treasury notes of the 

 same on deposit, and pay them out again to customers. 



That, until the said treasury notes can be prepared 

 and issued, it be recommended that all the banks agree 

 to advance to the Government, in current notes, such 

 Burns severally as may be agreed upon between them 

 and the Secretary of the Treasury the said advance 

 to be made on the deposit with the banks of treasury 

 notes of large denomination, on eight per cent, stock 

 bonds. 



That all the banks in the Southern Confederacy are 

 earnestly urged to take immediate action on the fore- 

 going resolutions, as a measure of the greatest import- 

 ance to the Government and the people, and communi- 

 cate the same without delay to the Secretary of the 

 Treasury, at Richmond. 



That it be recommended to all the railroad companies 

 in the Southern Confederacy to receive the treasury 

 notes in payment of fares and freights. 



That the Legislatures of the several States do make 

 it lawful for their tax-collectors and other officers to 

 receive the treasury notes in payment of all taxes and 

 all other public dues. 



That all the States, cities, and corporations having 

 coupons payable in the city of New York or elsewhere 

 in the enemy's country be requested, during the con- 

 tinuance of the war, to appoint some place of payment 

 in the Confederate States, and to give their creditors 

 notice of the same. 



The -convention adjourned to meet at Eich- 

 mond simultaneously with the Confederate 

 Congress, July 24. 



On that day the convention again assembled, 

 and it embraced representatives from all the 

 principal banking institutions of the Southern 

 States. It was resolved to take treasury notes 

 in payment of dues, and to advance money for 

 the use of the Government, until the treasury 

 notes could be issued. Eesolutions were also 

 adopted approving of the course of the Con- 

 federate Government in vigorously prosecuting 

 the war. The following resolutions were also 

 adopted : 



Resolved, unanimously, That it is the duty of the 

 banks, capitalists, and property holders generally to 

 give the Government all the support in money and 

 other means demanded by the war. 



Resolved, unanimously, That it is the opinion ofthis 

 meeting that the capital resources of this country are 

 abundantly adequate to supply all the demands created 

 by the war, and that this Convention will cheerfully 

 contribute its aid to render those resources available 

 to the people and the Government. 



