Year: 1863

the reports of Mr.. Memminger, JEFF. Davis Chan
celor of the Exchequer, and Mr. Chase, the
federal Secretary of the Treasury, is marked
and striking. The former is doleful and mourn
ing in its tone; the latter bright and cheerful
as pleasant May morning. One is the story
of blghted hopes and deceptive visions; the
other that of triumph and satisfaction in results.
This melancholy and gloomy feeling is exhibit
ed in every line of Mr.. Memmingers report.
The vanished visions of the past, the dismal
forebodings for the future, all stand out in
striking contrast with the joyful feelings mani
Tested throughout the report of Secretary Chase.
This, as marked as 1t is, does not even in the
difference exhibited in the tone show the real
contrariety between them. On the other hand,
the facts given in detail furnish the milk in
the cocoanut and the cause Of the lamentations
of the rebel Chancellor Of the ExcheQuer.


When the South in their delusion, commenced
to rebel against the government under which
they had prospered, they imagined that they
held the key to the commerce and finances Of the
world. They were sopufied up with Importance
that they considered it only necessary for them
to issue their d cree, and every nation in Chris
tendon would fall before them. In their esti-
nation. no nation could exist without being
able to obtain the products of the South. The
North might have the gold mines; but the rebel
lion of the South would draw the entire COM


merce of Europe TO the Southern coasts. The
cotton bales of the contederacy would always
give them commerce and power among ma
tions that would render success certain The
North, deprived of cotton and compelled TO
purchase her necessaries abroad, without cotton
10 return, would soon find herself involved in
a European debt that would plunge the whole
country into bankruptcy In short, the South
crn confederacy was the centre of the universe.
Whatever trouble there might be between other
nations. the ships of all would have to touch her
shores for King Cotton, the ruler of the world.
This being, according to their vision, the
strength of the South, a financial system was
organized upon that basis. Their former cher
ished scheme Of supporting the government by
direct taxation-which they had inserted in their
constitution as one Of the cardinal principles Of
the conederacy- for the moment aban-
doned. That was behind the age, when com
pared to their brilliant and impregnable
commercial position. new financial sys-
TEN was formed. Bonds were issued &C.
cured by these imaginary scenes. TO make
them all the more attractive, they were
mado to boar eight per cent interest. Then
came the rebel notes, which were re-
deemable in tho above bonds, based upon the
production of fancy. Whilst the preparations
wero being made to carry this plan into opera
ton blockade was established OF oil the priu
cipal ports Of the rebellious States. This was
recognized by the neutral Powers and put an
end to the commerce OF the South The boast
ed key to the vaults OF the world was no longer
effective, and the great financial bubble col
lapsed almost before il was inaugurated.


The boosted commercial greatness of the
confederacy vanished, and its leaders found
themselves in position where history was
simply repeating itself. The fnanciers neither
comprohended their condition nor pro6ted by


the lessons Of the past. Their minds we're yet
infatuated by the dreams Of greatness. and they
still clung to their visionary financial scheme.
They stood in the precise condition OF the
revolutionsts Of France near the close Of the
eighteenth century. France at that period was
without any foreign commerce. Her sails did
not whiten every sea or bear home the wealth
Of many lands. The leading revolutionists,
like those of the South were compelled to or
ganize plan Of finances, and, like the South.
found themselves without revenue or for.
eign commerce. Disregarding all laws Of
finance they commenced issuing govern
meut .assignats.r These met with tempo
rary success; but this very success
caused the originators to flood the
| country with them. The result was that
the assignats decreased in value at rapid rate,
and became worthless in a very short period.
| An effort was made to prevent the financial
wreck that seemed imminent by resorting to


what the French call mandats; but this only


increased the evil, and before new system Of


finance could be adopted the whole country


was brought to bankruptcy and financial ruin.


The remarkable similarity of the condition of


the South at the present time to that OF the


revoiutionists of France must be recognized


by the most superficial observer. The Trca-


sury notes OF the Southern confe deracy like


the assigDats of France, met with temporary


success. AS more money was demanded, the
| rebel notes were issued. until the South


was flooded with them, and in just about the


length of time that the French assignats be-


came valueless the rebel notes have been
placed in the same condition, and the whole
| South is on the brink Of financial ruin. These


notes have been issued in such quantities that


they now have about eight hundred millions
scattered throughout the South. when one hun
dred and fifty millions would furnish cur
rency sufficient for the demands of the internal


commerce and traffic Of the Southern States.


The leaders saw the storm coming, and resorted


to taxation to prevent the evil. But that
failed, as it always will in any nation during


an extensive war; when attempted to be car