The New Orleans bulletin. [volume] (New Orleans [La.]) 1874-1876, 1874-04-22
Gen. Joseph +. Johnston, Mr..
George A. Trenholm,
And the Confederate Finances
NO. l..


Johnston, will you allow me room in you
columns briefly to consider an edItor1a
which appeared in the Picayune OF the otl
inst in which / think that (unintenti0n
ally, no doubt some degree OF inJustIc'
was done to Gen. Johnstons The write
did not quote the words from Gen. John
ston's forthcoming book, which contains hi
opinion as to the availability OF cotton Il
have formed a basis Of finance to supper
the Confederate States in the late war
whilst he quoted the words of Mr.. GeOrg'
Trenholm, combating unfairly his opinion
/ propose to present the statements and
arguments of both these gentlemen, il
order that their true positions, with thell
relative force, rnay be clearly seen and est
mated Perhaps the Picayune may find
that the weight Of the argument is not
with Mr. Trenholm, as it asserted.
But, before proceeding further, | desire
leave to correct mistake the Pic. made
1t says, in reply to Gen. Johnston's opinion
" Both of the early Secretaries OF the Con
federate Treasury Mr.. Memminger and Mr.
Trenholm) are ont in letters vindcating
the course Of Mr.. Davis's administration.
There were no early Secretaries OF the
Treasury Of the Confederate States.
There were but two; and these gen
; tlemen constituted. them. Mr. Mem
minger was the Secretary Of the Treas
ury until the last year Of the Confedcracy,
whcn Mr.. Trenholm was called to this Of
flee, in consequence Of Mr.. Memminger's
resignation of it, to escape an Impeachment,
offered in the Confederate House of Re-
representatives., on account of charges pre-
pared against him, OF gross incompetency OF
dishonesty. These gentlemen We're, both of
them, active agents and leaders IN the
policy Of "A free expectation Of cotton, and
of blockade running, and both of them
made fortunes-Mr. Trenholm, however, be-
fore he became Secretary of the Treasury.
But hasten to lay before You the state
ments and arguments Of General Johnston
and Mr.. Trenholm, III order that your read
ers may fairly comprehend them.
General JOhnston's are stated as follows
in his book:
"The necessity of actual money in the
treasury, and the mode of raising it, were
generally understood in the country. 1t
was that the government should take the
cotton from the owners and send it to
Europe as fast as possible, to be sold there.
This was easily practicable, for the owners
were ready to accept any terms the govern
ment might fix, and sending to Europe was
easy in all the first year of the Confederacy's
existence. Its government went into opera
ton early in February. The blockade of
the Southern ports was proclaimed in May,
but was not at all effective until the end of
the following winter, so that there was a
period Of about twelve months for the
operation of converting four million or five
million bales of cotton into money. The
sum raised in that way would have enabled
the war department to procure at once arms
enough for five hundred thousand men and
after that the Confederate treasury would
have been much richer than hat of the
United States"
To this, Mr.. Trenholm replies. He says
that the crop of cotton available for the
scheme which Mr.. Stephens proposed, and
which Gen. Johnston thinks would have
saved the cause, must have been that of
1901. IL could not have been the crop
Of which the seed was not yet in the ground
when the government was formed. The
crop of lSGO-l was 3, $40 900 bales, of which
the Southern States consumed 1913, OO0, leav-
ing 1856, 900 for export.
Up to February 18th, the month in which
the Confederacy was formed, 5000, 900 bales
had been received at the sea-ports and the
great bulk of it exported to Europe or sold
to Northern spinners. BY May l, $4,000
bales more had been received and sold. |
England and the continent took 1922 600
bales and the New England spinners 654 600
DuiCS. NUS, DelOiC VIC uCW HONtIHIlicuU
was fairly organized, the entire crop was
already beyond reach. The next crop was
not ready before the September following,
when expectation in any quantity was an
absolute impOssibility."
1t will be observed, that the whole differ
encc between these gentlemen, is a difference
Of facts. General Johnson affilms that, "the
of the Southern ports was pro-
claimed in May; but was not effective until |
the winter following; SO that there was
period of twelve months for the operation
of converting four or five millions of bales
Of cotton into money" In stating that four
Or five millions OF bales of cotton could have
been converted into money, during this
year, it ought not to be inferred, that the
of tie whole four or
five millions of bales of cotton, was neces-
sary to form basis of finance for the Con-
federate States. One-half, or even less might |
have been sufficient for this purpose, (for
power creates power) although he states the
possibilli of converting the whole.
Mr.. Trenholm cOntrOverts General John
ston's position by limiting its sphere OF Ope-
rations to the crop of 1S60-'6l. He says:
" Let us examine the facts upon which this
theory rests and without the support of
which, it must necessarily fail to the ground.
The cotton crop available for this scheme,
must necessarily nave Deem That OF IS6U-6l."
Why this necessity, Mr.. Trenholm He CON
tinues further: lit would not have been
the crop whose seed was not yet in the
ground" Why not, Mr. Trenholm, if, as
General Johnston affirms, "tnere was a
whole year before the blockade was efficient
A whole year would embrace all the crop of
which came to market after Feb
ruary, ls6O-6l, when the COntederacy went
INTO operation, and also all the cotton which
came to market by February, 1862. IT, as
Mr.. Trenholm affirms the scheme relied only
Dn the crop of 1861 for its operation, Gen.
Johnston, Of course, as Mr.. Trenholm Justly
argues, simply put forth an impracticable
absurdity for Mr.. Trenholm shows, what
nobody could have been ignorant Of, that
the greater part of that crop, when the Con
lederacy was established, had already gone
20 market; and, in Europe and elsewhere,
was quite beyond the reach of the Con
Here then is an erroneous state
nent Of General Johnston's scheme. Whether
good or bad, Mr.. Trenholm has not touched
{. 1t relied on the cotton which might
.Ome to market duriny whole wear from