Year: 1863

Gentlemen Cf the Senate and House of Commons:


The reasons for my calling you together at such an
unreasonable time, and SO soon after your adjournment
will be found in the accompanying able ard interesting
report OF the Public Treasurer.


The gravity OF the question, whether considered in
reference to its probable effects upon the the finances
and credit of the State upon the interest Of the
pie and the success of our common cause will trust
constitute ample apology for my action in calling
you together, III which l need not say was unani-
mOusy sustained by the Council of State.


By recent act of Congress, all non-nterest bearing
Confederate Treasury Notes were classified and imi-
atiOn put on the time OF funding them set forth in
the accompanying report of the Public Treasurer By
this action intended to reduce the great volume of
per money In circulation, by causing to be funded


the notes or the two issues referred to were rendered
OF less value than those Of later issues and though to
that extent 1t was repudlatiOn OF them no action
would have been necessary the part of the Legisa-


ure had the matter ended here But the Legis ature
of the State of Virginia. being then in secret session.
Immediately provided against these issues being receiv
ed in payment of taxes, with view, said to
aid the operation of the of Congress- by fastening
the funding process and thereafter the banks of
the city OF Richmond acuated, no doubt, By the same
patriotic but unfortunate motive, declining to receive
them at once became matter OF serious concern with
the Treasurer and myself whether legislative &C.
tion would not be required in selfdefence and any
required it must be soon, the collection of the
taxes begins in July.


The Ordinance of the Convention No 35, Februa-
ry Session, makes it the duty of the Treasurer TO
ceive these issues but he invested with power
to reject them, it evidently would not become him
to exercise it under circumstances so different from
any contemplated by the trainers of the Ordinance.


To continue to receive them after this tia repuda


on of Congress- and after the Legislature and the
trOpotan banks of Virginia had refused them, would
OF course have ected that officer to the danger of
filing the treasury with notes greatly depreciaed it
might be-, or perhaps entirely, current. There was no
telling how the other banks of the country might
follow the example of those of Richmond, nor what ac-
tiOn other States might take and of it being
impossible to fund ALL and inconvenent to fund any,
long it would pass, it might be rushed into this
State and paid into Treasury. Such result would
be Tuinous alike to her creditors, her officers and her
soldiers.


This created responsibility too great to be borne
by the Public Treasurer, without Legislative sanction
and the matter is therefore submitted to you


After careful survey of the situation confidently
recommend you to provide for tie continued reception
OF these notes. the safer and honorable course
SO lar no other State has followed the example of Vr
guia, and Bank outside OF Richmond, in the whole
Confederacy, have refused them Our example may
have most happy lntu upon the contemplated
action OF Others n deadly blow could be strick
at than the repudiaton of our currency.
And that the honest oldashione debt-payng State of
North Carolina should be among the first to dshonor the
money paid her citizens for their substance, and her
soldiers for their blood is something l should regret
living to see.


Ii one issue of the Confederate notes be good then
al are good since the honor is pledged for their
redemption. 1t is exceedingly dangerous to take the


rst step towards dshonoring in the slightest degee,
our enormous volume of paper currency. The action
of one forces the action of anolber when if all stood
firm the public credit might be saved. refusal to
receive these notes. from whatever cause and however
weighty the reason, would among the non-com-
merca classes the most general alarm and even dstrust
and the want of confidence would become universal
The danger now be stopped. Ii we fail TO check
it, in my opinion it will be beyond remedy.


The suggestions of the Treasurer in regard to the
manner Of providing against any probable oss are well