Year: 1861

Richmond October II, 1861.


Tod Commissioners appointed % recers Subscriptions
de Produce Loan;


GENTLEMEN: Inquiries have been made from


various quarters


/. Whether, during the continuance Of the
blockade, efforts should be made to procure fur
! ther subscriptions.


,. Whether the government viii authorize


promises to be held out Of aid TO the planters, rs


an inducement 70 such further subscriptions
| The first inquiry seems to imply a misunder-


standing Of the scheme of the subscriptions.
Many persons have supposed that the govern


ment was to have some control of the produce


itself others that the time q sale appointed by
| the subscription was to be absolute and uncOn-
diti0nal The caption at the head of the lists,


when examined, Will correct both these errors.
/ The subscription is confined to the proceeds of
sales, and contains an order on the commission


merchant or factor Of the planter to pay over to
/ the Treasurer the amount subscribed, in cx-
change foT Confederate bonds The transaction
| is simply an agreement bv the planter to lend
the government so much money; and, in order
| TO co~pletc the transaction, timean place are
| appointed when the parties may meet TO carry it


out The important point is, that It shall Ger


tainly be completed at some time, and that's Sc
cured by the engagement of the planter
Whether that time be December or June is
| simply question Of convenience, and works no
! injury to either party. The government is sure
| Of the eventual payment, and derives from that
certainty so much credit and it loses nothing
because it gives its bond only when the money
| is paid.


It's obvious, therefore that the subscriptions
are as valuable tJ the government during the
blockade as after It, The blockade simply sus-
peDds the completion Of the engagement. 1t
becomes the interest Of both parties 10 wait for
good price, and the government will readily
consent to- a postpODeneut Of the sale


You perceive, therefore, that it is desirable to
continue your eXertiOnS 10 increase the subscrip-
tons; and you arc authorized to say that the
government viii consent 70 a reasonable exten-
sion of the time appointed for sales.


g. The next inquiry is as to promise of mate
rial aid from the government to the plauters


In answering this inquiry, l am to speak in
advance in any act Of Congress. What that
BODY may see fit to do, IS not for me to deter
mine. I can merely express the views Of the
department, these must govern your actions
until reversed by e higher authority. 1t would
be a sufficient answer to the inquiry to say that
the action of the government is settled by the
Constitution. No power is granted TO any de-
partmeut to lend money for the relief Of any in
terest Even the power of Congress in relation
to money is confined TO borrowing, and no
clause can be found which would sanction so
stupendous scheme as purchasing the entire
crop with view to aid its owners. But it may


be said that the Constitution of the provisional
government may be altered by Congress, and it
IS the duty Of this department to prepare the
way for such alteration, if, in its Judgment the
financial necessities Of the country demand the


change


am not disposed, then to close the inquiry


with the abrupt manner thus made by the Con


sututloni and will proceed to consider the sub-
Ject upon its intrinsic merits.


Two plans Of relief have been proposed Tho


one Is, that the government should purchase the


entire crop Of, the country; the other that an adj
vance should be made of part Of its value. In


either case thepayment is to bemade BY The issI,-


ance Of treasury notes; and therefore, if we mt


aside, for the present, the many aud serious oh
jections TO the possession, transportation and


management Of the crop by the government il


becomes simply question Of amount To pur.
chase the whole crop would require its whole
value, less the amount of subscriptions made IN
! the government. If we estimate the whole eron
of cotton at 00000, 900 and the Subscription a
| 50,eO0,OO the purchase would then require
| l50,0O0.O00 Of treasury notes, and, If 10 this


sum be added the amount of value for other a0-
| nculturul products, which would certainly claim