Weekly standard. [volume] (Raleigh, N.C.) 1858-1865, 1863-03-04
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REPORT,
If Tie Jeiat Select .Cammittee appointed under o.
Joint resolution to enquire into the causes qohy
soLiiers ,oere paid in Confederate Treasury Notes
ansteud of North Carolina Treasury Notes
The Joint Select Committee appointed to enquire
into the causes of the payment of Soldiers Claims
Inv distressing officers and agents of this State in
confederate Treasury Notes, which were authorized
10 be issued by the State Convention for the pay
,nent of such claims" beg leave to submit the fol-
lowing facts:
the Public Treasurer was authorized to issue Treas
,,rv notes to the amount of about six millions OF
dollars for the purpose Of paying drafts on the pub
liz Treasury: that BY the Ordinance of December I
lst 1861, the Public Treasurer was authorized TO
issue Treasury undable In six per cent oonoS
usrt of these notes were issued but IRON the TACT
NAT the Bank of North Carolina and its Branches
refused to take these notes as currency these notes
hacame uncurrent and to remedy this evil, the Con-
yenton passed Ordinance No. 80 of the date OF Feb
rnarv 26th. 1862, which Ordinance ordained that
all treasury notes Of certain denominations that nao
beeu issued, and all to be issued should be tunda-
lie in eight per cent bonds. or six per cent cert'
Gates convertible at the pleasure OF the holder IN
eight cent 0OnQS. IuC SohhuAAssSS AAs'~' s~s
meaatey after the passage Of this Ordinance, Nosth
Carolina Treasury Notes commanded premiums, as
thew were convertible into eight per cent bonds
This will appear FROM the report OF the Public Treas
urer to the House of Commons. dated 9TH Deeem-
bet 1907 in which report The Treasurer SHOWS tnat,
Although Confederate Notes were nothing IKE 50
plentiful then as now" that he refused the bids
from the banks Of the State in response TO his cir
cular asking the banks to reserve for him the Con-
Tolerate notes, (or the payment Of the Confederate
taxi from the fact that he ascertaned that North
Carolina eight per cent bonds commanded prem.
um IN Richmond. And it will appear from SAID
r.,ort that through MessrS Lancaster Il Sons, Bro
&c Of Richmond the Treasurer sold about 81, AGO.
OD of eight per cent bonds, which said sale CON-
menced on the 18th of March, 1862, and ended on
IN. 18th of May 1852, the premium OF the oonds
ranging from Ii per cent to per cent on which
sa,,s; the Treasurer realized for the State near
$4,000 The committee lind that the treasurer,
Tor the purpose OF meeting the ae.nS Me VI sns
Treasury failed to issue the Treasury Notes proVt
del f,r in the various Ordinances OF the Convention
bat as will appear from the evidence led with TINS
report sold large amount Of eight per cent bonds
ar.,ately at par, the sales commencing on Marcn
It.h. 1862, when the bonds OF the same denomlna
tons were selling in Richmond by aaMor'eyol 'ns
treasurer for II per cent premium, and ending II
September 1862, when the bonds were worth PIE
mum of 10 to ID per cent as will appear from tn
statement of Lancaster & Co., filed with this report
The committee find that Jno. G. Williams Co.
Brokers, in Raleigh, and Aessrs. Branch q Sons
Brokers, of Petersburg, Va, as Will appear rom u.
statement fled purchased from the treasurer, wi.
Confederate Notes, at par, eight per cent oonos I
the amount OF s7y7, 94s, worth premium IN hSi
mond according to date of ISSUE Of $4S, 2O2 y, an
a. Jno e. Williams, in his testimony, admits .
n,rchased about one million and quarter, and 1
bonds in his name are only issued Tor some Ia
million, he must have purchased in the names
other parties to the amount OF hall million OF nof
showing loss to the State of seventy odd thousal
lglars in the transactions Of the Treasury and 9th
oishursing agent with one firm in the city OF kaies
The committee from the want OF time ana the Oil
Guilty in procuring evidence, have been unaoie
make out statement as to the loss OF the s'a1e
various other large transactions with brokers q
individuals, but by reference to the treasurer
nort If the 9th December, 1862, 1t will be seen tt
lanes Z. Hoyt, John w. Cunningham and otne
were very large dealers; it will also be seen ina.
tho amount o. eight per cent stocks issueo' W
large amount went into the hands OF Brokers' an
yery small amount into the hands OF persons nav
hama tide claims against the State.
TTDon examining the ordinance of the Convent
NJ 81 the committee is of the opinion that 1t
,bcintention of the Convention to make the treas
notes currency, and the authority 70 iohu
notes in eight per cent. bonds, was tor the pnrF
nj Giving the notes credit as circulating medlt
all had these notes been paid out as contemP !, :
tot
be.n ditfused over the country as clrcuiat'on'
w,uld have returned slowly for bonds ana 50
a. these notes circulated, the State would have 81
a,ht ner cent interest, and the soldiers Wonio
r..eiyed their State bounty, and other merito'
creditors would have received their dues IN al
preciated and not, as they did IN eePfsoaas ~
rency. Instead however, of pursuing the oo '
Intentions of the Ordinance, that, as ne eoaio
nrocure the notes on account OF the iah VI
orleans. he ha6 the right to sell the bonus Z
flemish the Treasury for it is shown oy MS ns
that he sold large amount OF bonds 70 pay
Confederate tax and it is shown oy inc 'es 81 y
NJ the Treasurer himself, and the testimony OF o.
that he gave in exchange at par for Conied
money a large amount of eight per cent oou'
TO same time he was selling bonds OF the
x,lue in Richmond at handsome premium
,,e oninion of the Committee that the Orcinar
the Convention did not authorize the SAFE "
eight per cent bonds, neither olu .HT ~ \;
.nfhorize loan at any interest; neither o'
Ordnance authorize the issuing eight per
londs for any purpose, except in redem2t'
treasury Notes In the opinion OF the Conn
the exchange of eight per cent bones at p
ANYTHING except treasury Notes, was IN rea
sale of the bonds, and that suca safes "ei T. ~
,horized by law, and were injurious to the
because interest accrued Immediately at the
eight per cent. against the State which wou
haye been the case had the treasurer ISSUE
treasury Notes. The Treasurer, however, exc
the power Of sale, and if according to inns IS ~
tation of the Ordinance, he had rgnt 70 on .
GOOD reason is seen why he should not sell
Current premium. By the statement Of LaI
SEQ, Of Richmond hereunto appended. ., the
premium at which these bonds vsss selling
pr;anipa l-sssek narkst Of eaeI month, rom
to December, is stated, by which statement
he seen that if the Treasurer had sold these
at the current premium, instead Of at par, As
sell, he would have saved the State the sum
hundred and tsoenty -two dsousand too hunaa
secen dollars
From the evidence of Major A. N. LEVIN
master, it will be seen that the Treasury MOI
came into his hands were not circulated as IN
among the soldiers, but found their way INN
" into the hands of Brokers and Speculation
the State was Immediately subjected to Gig
cent. interest by the funding Of these mote
notes were returned to Major A. NJ. Lewis, 4