Richmond dispatch. [volume] (Richmond, Va.) 1884-1903, 1890-07-09

fence" This loan was secured for the
payment OF interest and prlncipal Oy an
export duty Of one eighth OF l per cent.
per pound on all cotton in the raw state
sent out OF the country.
THE MED or MONEY.
When the southern States Withdrew from
the Union IN 1851 and formed themselves
into the Confederate States OF America
the first and most important question that
demanded the instant attention OF the new
Government was the matter OF suincient
money 70 defray its necessary expenses;
The only revenue possible consisted IN
loans and taxes. but in the chaotic condi-
ton consequent on the formation OF the
new government, it was impossible to do
much with the taxes. The remaining refuge
of loan was Immediately used by Congress,
who on February 18th authorized President
Jefferson Davis to negotiate loan OF
S15, 100000.
That Mr.. Davis appreciated the value of
q full treasury is shown by the following
extract from his Rise and Fall OF the Con-
federacy":
Il was one Of the few who regarded Sc
cession and war "a inevitably connected.
and my early attention was given 70 the or
ganization of military forces and procure
ment and preparation of the munitions of
war;
In furtherance OF this policy Mr.. Davis
appointed {. c. Memminger. OF South
Carolina, as his Secretary of the Treasury.
Mr.. Memmlnger was known rs a lawyer Of
great legal acumen, one whose chief ability
lay In his power 20 grasp the minutest de-
tails Of any subject under consideration.
Mr. MemmIngcr. as soon as in office, began
20 do all in his power 20 make the fifteen
million-dOllar loan q success. The first
thing was to get the bonds and certificates
engraved. He rightfully believed that the
appearance Of bond had much 10 DO with
its sale, and in looking about for good
work settled upon the American Bank
Note Company. of New York. which was
then printing the bonds and Treasury
notes of the United States Government.
CONTRACTS IN TIRE NORTH.
The contract was made and the same
company that was engraving the bonds of
the Federal Government engraved and de-
livered bonds for the Confederate Govern
ment. All this was brought out IN fierce
debate IN Congress IN March, 1874, and
certain correspondence about the en-
craving contract was then published. Sec
Rotary Memmlnger's private letter book.
however, throws good deal more light on
the matter. The American Bank Note Com
pany defended itself by asserting that pre-
yious TO any talk of war it was printing
for the southern States. 10 hoped. "a
did many people. that the South would be
allowed 20 peacefully withdraw from the
United States With that hope 1t was not
considered wise tOrefuse 20 takea contract
from the projected Confederate Govern
ment. When war was declared the com
pauy, according 10 its present officers. re-
fused to do any work for the Confederacy,
and its southern Office was seized and con-
fscated.
Copies Of the first warrants issued by the
Confederate Government are also given in
Secretary Memmlnger's book. while many
OF the letters explain the difficulties en-
countered in doing work Of any descrip-
ton in the different departments OF the
Government and show many interesting
phases of the struggle TO get the official
machinery of perfectly new government
in good running order.