The semi-weekly messenger. [volume] (Wilmington, N.C.) 1897-1908, 1904-08-05
Contributions to the Hall of History by General w. R Cox
The State Flag as Presented By the Convention Of 1861.
An Original Report by Samuel F. Philips, Com
missioner of Blockade Accounts,
Appointed in 1864.
Appointed in 1864.

o4CS Va ENIlD
based upon the possession OF cotton.
ana sales of scrip based upon the DOS
session OF naval stores. The a%ppropri-
atoms were authorized by acts in secret
session, and amounted to 3, 324, 900. and
the money drawn immeditely from the
treasury was intended to pay of the
debts arising from the issue of scrip.
Fart was spent in buying cotton TO be
exported, and in buying rosin. In No
vember. 1862 Governor Vance sent
Wh1te to England to negotiate the sale
or scrip which bound the state to de-
liver to the holders. cotton at certain
prices and at certain places IL called
for within a certain time after peace
with the United States, n upon this
scrip White obtained from Alexander
Collie & Co, of Manchester, during the
summer Of 1863, $500, 900, The warrants
being for one hundred pounds sterling
each, and binding the state to pay for
them within three months after peace,
In cotton, the latter to be delivered
free Of all duty and charges Except a
certain export duty, at certain places
IN the Confederacy at ten cents a
pound, the interest rate being seven per
cent. until the cotton vas demanded,
and the holders being given leave to
exchange their scrip or warrants for
Ugh per cent. state bonds. 1t appear
ed from memoranda filed in the audi
tors office by White that warrants to
the amount of $3.50. 900 had been placed
in possession Of Collie & CO., or pledg-
ed or sold to other parties, but no ac-
count of these transactions nave been
rendered beyond the sum first mention
ed. Mr.. Phillips thought it probable
that creditors OF he state held cotton
warrants to at least the value of $685.
900 and perhaps $3.50, 900, and he was at
a loss to account for this. White oniy
charged himself with the $500. 900 which
actually came into his hands.
About the time White was sent to
England, George M. Sanders, and D.
K. McRae were empowered by the Gov
| ernor to pledge the credit of the state
upon scrip which bound it to deliver
rosin in exchange for military goods.
The amount somewhat similar to that
in the case of the cotton. In the sum-
mer CT 1863 MacRae obtained from a
Manchester firm 1921, 500, to be paid for
in rosin at a dollar a barrel, the state
to make delivery at Wilmington or
some other port. During the winter or
| 1923 Governor Vanc assigned to
Major job Devereux and William H.
Oliver the duty Of purchasing the cot
ton needed and by August 1, 1863, they
| had secured for the state S,576 bales, at
| 20 cents a pound. Other cotton was
bought by Geo. Little, Raleigh and by
Joseph H. Flanner. of Wilmington. The
legislature in secret session in July,
| 1863. ordered the further purchase of
cotton, to pay the warrants to Collie &
| Co, and SO Major DevereuX, in the au-
tumn Of 1853. bought 3,195 bales. at an
average price Of nearly seventy cents
a pound. The Is. 900 bales of cotton
were sold principally at Graham,
Ridgeway and various points in Geor-
| gia and Alabama. "A lot Of cotton was
due the state by the Confederate
| States, as was reported by Mr.. Murray.
the state agent at Wilmington, after
a conference with the agent of the Con-
federate government, this being for
SOC bales of cotton which the state
had lent the Confederacy. 1t was found
however, that the C~onfederacy owed
this state much cotton for cargoes OF
merchandise imported under contract
upon the state blockade-runner "Ad-
vance," the Confederacy having forced
the state to give 1t a half interest in
this vessel and cargoes. Of all the
cotton shipped, only that sent to two
Liverpool firms was accounted for. Il
is said that some was burned at Ber-
muda. but BOT this there was dis
pute.
T. J. Hughes reported that he had
purchased for the state, and stored in
various secure places, about so, 900 bar
rels of rosin, at about 20 cents each,
but that no demand for rosin had yet
been made BY holders Of naval store
! scrip.
MIR. Phillips contrasts sharply the
transactions Of the agents within the
state and those without, he cotton
buyers in the state having reported
verv promptly. One question which
came up was whether the debt was due
in Confederate money. that is at the
value Of the latter. or whether the
state really owed a dollar in specie for
every dollar it had borrowed to carry
on it's blockade-running adventure,
namely the ST. 24. 600. He held that the
creditors could not justly be required to
take payment in Confederate treasury
notes at their then value. this currency
having greatly deprecated since the
time when the Epglishmen advanced
their one to the state. It was found
that on the LIST day Of October, 1854
this depreciation was so great that
SIS, 200, 600 in Confederate notes woul
not supply the place Of the s2,344,0 900.
l Mr.. Phillips said the cotton On hand.
together with that due from the con-
federacy and the agents of Collie &
Co., at Wilmington at ten cents would
pay off some $3.50, coo Of the debt upon
the states cotton warrants, but cotton
was very liable to destruction, espe-
cially in a war in which it had been
made contraband, n all the risks on
this score rested upon the state. He
said that after the many fires which
had destroyed public cotton in various
states, no one could be surprised al
hearing of North Carolina's loss in this
way of a large part Of its own cotton.
He said it would be Notifying il il
should turn out in the end that the
state had been seriously injured by
this adventure n that II was sound
policy to have the whole affair cleared
up and settled at the earliest moment.
Governor Vance had pushed the in
quiry as far as he could and one part
Of this policy dictated the sending OF
White to England, while in carrying
out another, the Governor had paid
500, 900 Of the state debt or cotton war
rants and had nearly closed an ar