Year: 1861


of the Confederate Trensury--HoW
the Bobels are Trying to Fly the
Kite Without Wind.


To the Conamissioners appointed TO Reeeice


Subscriptions TO the Product Loan:


GENTLEMEN-Tnquiries have been made
from various quarters:


l. Whether during the continuance of
the blockade, efforts should he made to
procure further subscriptions.


2. Whether the government Will author
i1e promises to be held out of aid to the
| planters, as an inducement to such further
subscriptions.


The first inquiry seems to imply mis-
understanding of the scheme of the sub
scriptions. Many persons have supposed
that the government was to have some con-
troll of the produce itself; others that the
time of sale appointed by the subscription
was to be absolute and unconditional
The caption at the head of the list, when
examined. will correct both these errors.
The subscription is confined to the pro-
ceedS 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 exchange for Con-
fcderatc bonds. The transaction is simply
an agreement by the planter to lend the
government so much money, and in order
to complete the transaction time and
place arc appointed when the parties may
meet to carry it out. The important point
is that it shall certainly be completed ut
some time, and that is secured by the en-
gagement ef the planter.


Whether that time be December or June,
is simply question of convenience, and
works no injury to either party. The gov
ernmcnt is sure of the eventual payment,
thot infy nFI
credit; and it loses nothing, becauscit gives
its bond only when the money is paid.


1t is obvious, therefore, that the sub
scriptions are as valuable t. the govern
ment during the blockade as after it. The
blockade simply suspends the completion
of the engagement. 1t becomes the inter-
est of both parties to wait for good
price, and the government will readily con-
sent to pOstponemcnt of the sale.


You perceive, therefore, that it is desira-
BILE to continue your exertions to increase
the subscriptions, and you are authorized
to say that the government will consent to
reasonable extension of the time np-
puinted for sale.


3. The next inquiry is as to promise Of
material aid from the government to the
planters.


In answering this inquiry, am to sneak
in advance of any act of Congress. What
that body may see fit to do is not for me to
determine. l can merely express the views
of the department these must govern
your actions until reversed by a higher
authority. 1t would be n sufficient answer
to the inquiry to say that the action of the
government is settled by the constitution.
No power is granted to any department to
lend money for the relief of am interest.
Even the power of Congress in relation to
money is confined to borrowing, and no
clause can be found which would sanction
so stupendous a scheme as purchasing the
entire crop with n view to aid its owners.
But it may be said that the Constitution
! of the Provisional Government may be al
tered by Congress, and it is the duty of
this department to prepare the way for
such alteration, if in its judgement the
| financial necessities of the country demand
the change.


| am not disposed, then, to close the in
/ quiry with the abrupt manner thus made
/ by this Constitution, and will proceed to
consider the subject upon its intrinsic
merit.


Two plans of relief have been proposed.
| The one is that the government should pur-
chase the entire crop of the country; the
other that an advance should he made OF
I
ment is to be made by the issuennce OF
treasury notes; and, therefore, it we put
aside for the present the many and serious
objections to the possession, transportation
and management of the crop by the gov
crnment, it becomes simply question of
amount To purchase the whole crop
would require its whole value, less the
amount of subscriptions made to the gov
crnmeut. If we estimate the whole crop
of cotton at 5000, ,OOOO0O, and the sub
scription at S5O,OOO,OOO, the purchase
would require $3.50, 900 of treasury
notes, and if to this sum be added thu
amount OF value for other agricultural
products; which would certainly claim the
same benefit the sum required would prob
ably reach Sl75, 100000.


The amount called for by the other plan
OF making an advance would depend upon
the proportion of that advance. Few u
the advocates of this plan have put it
lower than five cents per pound on cotton
and at the same rate OH other produce
1t may, therefore, be very fairly set down
Mt about Sl0O,0O0,O0O.


If we consider first, the least objection
able of these plans it is certainly thai
which requires the smaller sum; and, il
this be found impractichble, the larger
must, of necessity, lie rejected. Our in
Quiry, then, may be narrowed down to 81
proposal that the Government should is.
sue one hundred millions of Treasury
notes, to be distributed among the planting
community upon the pledge OF forthcoming
crop.


The first remarkable feature in this
scheme is that it proposes that Il new gov
ernmcat, yet struggling for existence
should reject all the lessons of experience
and undertake that which no government
however long established, has yet succeed.
ed in effecting The Organization of H.
bor' has called forth many ingenious at
tempts, both speculative and practical
among well established governments, bu
always with disastrous failure. With us
however, the experiment is proposed to :