Wilmington journal. [volume] (Wilmington, N.C.) 1844-1895, 1861-10-24
Letter from Hon. G.. @. NEemrninscF.
CONFEDERATE STATES OF AMERICA,
TREASURY DEPARTMENT,
Pioh,nrnd 0nf I 18th 1881

Richmond, Oct. l5th 1861.
To the Commissioners appointed TO Receive Subscrp
tions TO the Produce Loan
GENTLEMEN Enquiries have been made from various
l. Whether during the continuance of the blockade
efforts should be made to procure further subscriptions
q neither the Government will authorize promises
to be held out OF aid to the planters as an nducement
to such further subscriptions
The first enquiry seems to imply misunderstanding
of the scheme of the subscriptions Many persons have
supposed that the Government was to have some con-
troll of the produce ITSELF Others that the time OF sale
appointed by the subscription to be absolute and
unconditional. The caption at the head OF the lists
when examined will correct both these errors The sub
scrption confined to the proceeds of sales and con-
tains order 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, 10 order TO
complete the transaction, time and place are appointed
when and where the parties may meet to carry 1t out
The important point is that it certainly shall be COM
pleed at some time and that is secured by the engage
mpnt of the planter Whether that time be December
For June is simply question of convenience, and works
no injury either party. The Government is sure OF
the eventual payment and derives from that certainty
so much credit and it loses nothing, because II gives
its bond only when the money paid.
1t is obvious therefore, that the subscriptions
quite as valuable to the Government during the block
AIDE as after it. The blockade simply suspenas the COM
pietIOn OF tie engagement IL becomes vi
both parties wait Tor good price, and the Govern
ment will readily consent to pOstponemen OF the SALE
You perceive, therefore, that it is desirable to continue
your exer0ns increase the subscriptions; aud you are
authorized say that the Government will consent to
reasonable ext nSion OF the time appointed for sale.
| 2 The next inquiry is as TO premise OF material
aid from the Government to the planters
In answering this eHqury,-l am to speak in advance
of any action Of Congress. What that body may see
fit to do it is not for determine | express
thp 10 Of and
govern your action, until reversed by higher authority
1t would be sufficient to the enquiry to say,
that the action ct the Government is settled by tte
Constitution. 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 confined to
borrowing aid 10 clause can be found which would
sanction 50 stupendouS scheme purchasing the ELI
tire crop with view to aid its owners But 1t may be
said that the COnsttut OF the rOvsiOna Govern
ment may he altered by Congress- and that it is the du
y Of this Department to prepare the way for such ate
ration it, its judgment, tie faancal necessities OF the
country demand the change.
am net disposed, then to close the enquiry with
the abrupt thus made by the Constitutions ard
will proceed to consider the sub ec upon its intrinsic
merits.
Two plans Of relief have been proposed. The one is
that the Guvernmf ut should purchase the entire crop Of
the country the other that advance should be made
of part OF its value. In either the payment is to
be made by the issue Of Treasury notes. and therefore, if
put aside for the present the many and serious obc
tions to the possession transportation and management
Of toe crop by the Government it becomes simply a
question of 10 purchase the whole crop would
require lis whole value, lees the amount OF the subScrp
tious made the Government. If we estimate the
whole crop OF cotton at 200 millions and the subscIip-
tions at so Millions the purchase would then require
80 millions OF Treasury notes, and, if to this sum- be
added the amount Of values for other agricultural pro-
due 8, which would certainly claim the same benefit the
sum required would probably reach l IS millions.
The amount called for by the other plan of making
an advance would depend upon the proportion Of thst
advance Few of the advocates of this plan have put
lower than five cents per pound cotton and at the
same rate upon other produce 1t may therefore, be We
ry fairly set down at about ore hundred millions.
If consider first the least Objectionable of these
plans it is certainly that which requires the smaller
sun; and if this be found mpracticabe the larger must
Of necessity lie rejected Our enquiry, then, may be
narrowed down proposal that the Government shall
issue hundred millions of Treasury notes. to be dis
trbuted among the planting community upon the pledge
of the forthcoming crop.
The first remarkable feature in this scheme is that it
proposes that Government yet struggling for ex-
stence, should ect all the lessons of experience, and
undertake that which no Government, however long
tabshed has yet succeeded in eecipg. The organi-
cation OF labor has called forth many ingenious attempts
both speculative and practical among well established
Governments. out always with disastrous failure. With
as, however, the experiment is proposed to Gov
ernmeut, which Is engaged in gigantic war, aud which
must rely credit 10 furnish means 10 carry on that
and workshops winch have tie collected during forty
five years of peQce-lher fleets have been built up at
car own joint expense. With all thesp.on hand they
yet Obliged to expenC near mi lions of dollars
per week to carry on tie Can expect to con-
tend with them at less than half that expendture?-
Surprising that it may require 200 millions Of dollars
then the proposal s that time when are called
upon to rase this large for the support of Cover
ment shall raise further of 100 millions for
the benefit OF the planting interest.
For b. It observed, first. that the re.
ceves 10 benefit whatever from this advance The
money is paid to each lad vidual planter and in ex-
change the Government receives only his bond or note
or; if the cotton be purchased the Government re-
ctves only certain bales of That is to saw the
Government pays out money which is neediul to lis
very existence and receives Ia exchange planters notes
or produce, which it does reed ard cannot in any
way make of.
1t must be Observed in the next place that Treasury
Notes have now become the currency of the country
They Therefore at present the Of value. In
this view it the duty OF the Government to limit their
ISSUE as far practicable to that amount which is tie
limit OF lis currency. Every person acquainted With
this branch OF political science that if the cur
reacy passes this point it not only becomes deprecated
but 1t dsurbs the just relations of society," precisely
though an arbitrary authority should change the weights
and measures OF the country If the currency of coun-
try should be suddenly extended from one hundred to
two hundred millions of dollars, that which was mea-
sured by one dollar is measured by two and every
article must be rated at twice its former price OF
course all contracts disturbed. The debt incurred
before the Increase is discharged By paying one-ha its
former vaue and each article purchased must be sad
for at double its former price The Government from
the necessities of is the largest of all purchasers
and thus, by kind of suicidal act compes itself to
pay two dollars for what ore would have formerly pur-
chased. And at this rate of advance, two hundred
millions OF dollars effect more, than one hundred
millions OF dollars would have effected before Or in 9th.
er words, one hundred millions of dollars are actually
sunk in the operation.