Year: 1874

SCOn recOlleSClOnS OF history were az
vivid as his knowledge of military
tactics is great, instead of censuring
the financial administration of the
Confederate Government, he would
have discovered no instance on record
where war of such dimensions, in a
constantly decreasing territory, has
been sustained for four years by mere
financial expedients, without the aid
usually derived from taxes-for in
the whole Confederate war but one
general war tax was levied. and q
great portion of that was never col
lected. C. 6. MEMM1NGER.


1 append, as part of the history Of
the times, one OF the circulars of the
treasury department on this subject
CoNFEDERATE STATES OF AMERICA,
I-,---- Treasury DEPARTMENT.


RICHMOND. Oct. Is, 1861.


Tile Commissioners appointed TO Re-


ceive Subscriptions to the Produce


Loan:


GENTLEMEN-Inquiries have been
made from various quarters


l. Whether during the he'continuance
Of the blockade, effort should be made
to procure further subscriptions.


9. Whether the government will
authorize promises to be held out OF
aid to the planters, as an inducement
to such further subscriptions.


The first inquiry seems to imply a
misunderstanding of the scheme OF
the subscriptions. Many persons
have supposed that the government
was to have some control Of the proi
duce itself; others that the time of
sale appointed by the subscription
was to be absolute and unconditional.
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 commi- -sion
merchant orsfactor of the planter to
pay over to the treasurer the amount
subscribed, in exchange for Confed-
er te b,nis. The transaction is SIM
ply an agreement by the planter to
lend the government so much money
and. in order to complete the trans
a..tion, q tine and place are appoint-
gu wHen and wrere the parties may
meet to carry it out. The important
point is. that it shall certainly be
completed at some time, and that is
secured by the engagement Of the
planter. Whether that time be De-
cember or June is simply a 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
dis paid.


1t is obvi.ns, therefore, that the
subscriptions are quite as valuable to
the s,"erninent during the blockade
as alter it. The blockade simply sus-
perds the completion Of the engage
ment. It becomes the interest Of
both parties to wait for good price,
and the government will readily con-
sent to a postponement of the sale.


You perceive, therefore. that it is
desirable to continue your exertions
to increase the subscriptions; and you
are authorized to say that the govern
ment will consent to a reasonable ex-
tension OF the time appointed for sales.


2. The next inquiry is as to prom
ise of material aid from the govern.
ment to the planters.


In answering this inquiry, am to
speak in advance Of any action Of
Congress. What that body may see
fit IT, do, it il not for me to determine
I can express merely the views OF this
department., and these must govern
your action, until reversed bya high
er authority. It would be sufficient
answer to the Inquiry, to say, that
the action Of the government is set
tled BY the constitution. No power
is granted to any department to lend
money for the relief Of any interest,
Even The power of Congress in rela-
tion to money Is confined to borrow
ing and no clause can be foundiwhich
would sanction s..stupendous scheme
as purchasing the entire crop with a
view to aid its owners. But it may
be said that the constitution Of the
Provisional Government may be al
tered by Congress. and that 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.


I am not disposed, then, to close
the inquiry with the abrupt answer
thus made by the constitution; and
will proceed to consider the subject
upon its intrinsic merits.


Two plans of relief have been pro-
posed, The one is that the govern
ment should purchase the entire crop
of the country; the other that an
advance should be made of part of
its value. = In either case the pay
ment is to be made by the issue OF
treasury notes, and, therefore. if we
put aside for the present the many
and serious objections to the posses
sion, transportation and management
of theicrop by the government, it be-
comes simply a question of amount.
To purchase the whole crop would
require its whole value, less the
amount of the subscriptions made to
The government. # we estimate the
whole crop Of cotton at two hun lred
millions and the subscriptions at fifty
millions, the purchase would then re.
quire one hundred and fifty millions
of treasury notes, and, if to this sum
be added the amount of values for
other agricultural products, which
would certainly claim the same bene.
fit. the sum required would probably
reach one hundred and seventy FIVE
millions. .ses4s3. 5s.as -,


The amount called for hu the other