New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1901-09-14
THE CONFEDERACY.
IT'S ECONOMIC EXPERIENCE. ITS DIPLo-
MACY, AND IT'S PLANTATION LIFE

THE DIPLOMATIC HISTORY OF THE SOUTH
ERN CoNFEDERACY. BY James Morton b:1,nn
matte History 1900. Emo PIP goa Baltimore;
The Johns Hopkins Press
ciE HE H coSFFDR RR sT3TEs: With some
Personal "Reminiscences by j. M 1 SHpfa; PIIb
fishing Company
The economic history OF the South during the
Civil War presents peculiarly interesting sub
feet for the study of the economist 1t oners
him an opportunity of observing the results
brought about by the sudden negation of normal
economic forces within certain restricted limits
OF tracing the unavoidable outcome Of policies
prompted by given conditions, and of following
the relations Of cause and effect with GER
tainty not always possible in their more COM
plicated interplay in times of peace and I'M
interrupted intercourse. On the other hahd'
the material is scattered, fragmentary ana oil
fcult of access. Professor Schwab's elaborate
study is the first that has been attempted he
modestly disclaims originality Of method but
he is entitled to high praise for his extensive
and accurate research and his clear presentation
OF his results.
The history of the period centres about the
financial legislation OF the Confederate Con-
gress and the efforts Of the government to OBJ
tain the means for carrying on It's struggle.
AS in the North during the same period, taxa
ton was relegated at first to the background
and immediate recourse was nau 10 pupiIC iodhS-
The story of them is tangled skein, though
the information in regard TO them is more album
dant than that relating TO many other subjects
Cotton was from the beginning chief reliance
of the Confederate authorities a basis Tor
foreign loans but the blockade was an insupera-
bic obstacle to success in this direction. In fact,
Professor Schwab repeatedly calls the blockade
the North's most potent instrument in reducing
the South, by depriving her of the means OF re-
sistance. But the fiscal policy adopted by the
Confederacy pointed almost inevitably to dis
aster apart from the embarrassments or the
blockade and the final outcome of military fall
ure The easy expedient of bond issues was
soon followed by the easier one OF paper cur
rency issues, with provisions for enforced fuho-
ing of treasury notes in bonds, amounting TO
partial reputation. The strict constructionists
who founded and governed the Confeoeracy
could never bring themselves to the expedient OF
making paper legal tender, though there were
insistent and unceasing demands that this step
be taken. OF this Professor Schwab says:
1t is greatly to the credit of the Southern
statesmen that in the stress of the conflict they
were not. like the Northern Congress-. swept
into adopting this desperate financial policy, but
insisted throughout the upon both Its I'M
constitutionality and futty. This credit Que
the Confederate Congress is somewhat dimmed
by its having in other directions distinctly Vio-
lated both the letter and the spirit or the con-
stitution.
State governments however. were not con-
strained by the constitution, and went TO great
lengths in passing legal tender laws. By the
end OF the the currency was confused
mass Of government, State. and even municipal
paper issues with the paper obligations OF
pretty nearly any private citizen who felt dis
posed TO issue them The phenomena always
attending imitation Of the currency were con-
spicuoue in the Confederacy, and, Professor
Schwab points out, nowhere else can they be
studied to better advantage. The first Of these
is the alleged scarcity of money; early in 1861
the complaint heard that money was not to
he had, the natural result of redundancy that
drove prices constantly upward Cotton and
tobacco, monopolized by the South. fell in price
below the level of 1850 coffee. derived wholly
from abroad reached the greatest height; meat
products and cereals stood between these ex-
treres. according to the conditions Of supply.
Appropriated TO those Of the the other.
Food supplies avoided the markets. and to all
merchants and shopkeepers, well to the
farmers, applied the familiar epithet OF
goddess Shylocks.' II they were to blame
for the high prices. Salaried and wage earning
classes suffered severely. the nominal rise In
their remuneration tagging, as in the North, far
behind the rise in commodities. Countless bills
TO prevent extortion and speculation were intro
duced in the State legislatures, but all such
outcries were quite futile they We're under
the similar conditions of the American and
French revolutions Speculation as in the
North, became rife. till. THE Richmond Ex-
aniner put it. every man in the community
is swindling everybody else" Speculation in
gold aroused much feeling 1t did in the
North. Even blockade running, with its great
profits for great risks. the subject of bitter
attacks, not TO be appeased by the showing that
such importations did not initiate but depressed
prices.
Professor Schwab's account Of the meagre at
ternpts of the South to esta blish Industries dur
ing the IS interesting. To complete the pict
ure OF the disturbances caused by the paper
money imitation, he gives few words as to the
moral decadence that accompanied 1.-THE
travagance. the lowered moral tone, and a
general failure OF self-restraint and social dis
cipline.
Though the South never undertook high
diplomacy during the Civil War. it engaged In
an active and industrious effort to secure recog-
milton from foreign countries. and failing that
assistance in loans and war material. Mr.. Cal
lahan's book is a thorough study of this ac-
tivty, in which he has used the official archives
and especially the diplomatic correspondence
in manuscript in the United States Treas
ury Department, and certain other unpublished
material The manuscript correspondence is
that known as the Pickett Papers" purchased
by the government, including a great quantity
Of documents relating to the Confederate diplo-
macy. and Of great importance as historical ma
teriai-'of far greater value" Mr.. Callahan
says, than any of the collections Of military
papers or records"
England and France were the chief hopes of
the Confederate authorities. and commissioners
early sent both countries. who were oc-
clpifd In the effort q obtain loans Cotton was