Year: 1863

IdE IOAN ENULAND'


On the 5th of August Mr.. II, w. SCHWARTZ,
holder Of the Confederate cotton loan, addressed
letter to Mr.. G. j. McRAE, who had acted as agent
for the Confederate States in the original negotla
ton of the loan Mr. Schwartz had no doubt OF the
ultimate success of the Confederates, or OF the faith
tu ful6Ilment Of their obligations by the Confede-
racy. Still he was in search of knowledge, and
desired information the following points


/ Whether there exists within the Confederate States
in pessesson of the Government cotton sufficient TO dis
charge its liabilities on this loan; II so what amount they
2 Where the cotton is stored, and how and il
the taking of Charleston, Mobile, and Savannah by the
Northern army will the destruction or capture Of
any portion of the Government stock OF cotton and OF
how much I


8 Whether or any holder of paid up bonds, on de-
manding cotton in exchange for bonds can get immediate
possession of the within the limits OF the Conedera
cy and whether having possession OF the cotton forth
with shall return of peace or having previous OPP
portuniy OF expectation be exempt from all duty except
The stipulated duty OF an eighth OF cent per pound


Mr. McRAE replied that the Confederacy had at that
time at least FIVE hundred thousand bales of cotton, and
then proceeded to say:


This cotton is principally in the States OF Georgia and
Alabama and some also n the eastern part OF Mississippi
Northwestern Louisiana and Texas and stored on the
plantations of the planters from whom II was purchasea
IN sheds or warehouses three hundred feet from any other
buildings and in all the planters have agreed with
the take the came OF the cotton as
it still belonged them and to deliver it to the order of
the Government when wanted. The capture OF all our
seaports would endanger the loss OF single pound OF
cotton as there stocks OF cotton at any OF them
there any considerable stocks OF COTTON az one
place in the interior having been taken by the Con-
federate as we'll State Governments that no cotton
should be stored at any point within i've miles OF rail-
road station or navigabe stream That portion of the
crop of 1861 which had been brought to the various ine-
ro depo has long since been taken back to the panta
tons by special order of the State Governments Inc
cotton will be delivered to any holder OF the bonds on de-
aud provided for in the fourth article o the contract
In the States Of Alabama and Mississippi where nave
personal knowledge OF the manner IN which the business
has been transacted the cotton has been sampled
marked and nvoced and the agents OF the bondhoiders
can examine the samples the offices OF the chief agents
Of the loan in the different States and take their orders on
the planters the delivery of the cotton without trouble
or The cotton obtained under this loan will not
he subject to any duty except the export duty OF
oneeehth of cent per pound existing at the date OF the
contract


Whether not Mr. Schwartz was satisfied with these
asurances do not know but when he reads the follow
ing letter he will perhaps regard bis security to say the
least, as doubtful:


TREASURY DEPARTMENT, c. S. A.


Richmond July 10, 1868.
Hon. j A. Seldom Secretary of War.


SIR: The fall of yicksburg and Port Hudson exposes
to the enemy the cotton purchased by the Government IN
Mississippi and Louisiana / learn that many OF the
planters in whose the cotton will probably leave
their plantations go that there will be person to whom
the duty can be- n!rusted of preserving the cotton II II
csn be preserved of destroying it where it is likely to
fall into the hands of the enemy Under these circum
stonces would respectfully submit that the subject be
placed under the control Of the commanding generals snd
that they ke to destroy all such cotton as cannot
be preserved from the hands Of the enemy With much
respect your obedient servant, c. g. MEMMNGER,


Secretary Of the Treasury.


Mr. De Bow tie purchasing agent of the Confederacy'
in accordance with the foregoing letter has issued cir
cuar ordering the destruction Of cotton wherever there
danger Of its falling into Federal hands, being OF the last
Importance thai should not be trophy of the enemy
Ia accordance with this ORDER the cotton has been de
stroyed and the atmosphere, learn by dispatches
and letters been heavy with the smoke OF the burning
fibre Our army has captured thousands of bales, and
there really nothing to prevent the loss by fire or Fede
raj capture pretty much all the security so carefully
slowed away at distance of three hundred feet from
exposure and five miles from any railroad or navgable
river Mr.. Schwartz will probably address second let
ter to Mr. McRae when he hears of the method adopted
by the Confederate authorities to protect the liabilities s
the South.