of first necessity. The Governors of Georgia, Louisiana, and Mississippi, requested the attention of their respective Legislatures to this subject of complaint. It was urged at Richmond that the Confederate Government should make it treason, and punishable by death, for any one to ask or receive a percentage for exchanging one sort of money for another, whether it was specie for paper, or one sort of paper for another; that every State in the Confederacy should receive at par any paper money lawfully issued by any corporation or individual within its jurisdiction; that the "public funds and securities" should be used to redeem any paper money in the Confederacy; and that every bank in the Confederacy should be forced to redeem the bills of every other bank. Those must be fearful evils from which an escape is sought by such means. The following is a copy of one of the Treas ury Notes of the Government : To obtain some relief from their embarrassments, the planters applied to the Government. The office of the produce loan was burdened with their letters suggesting and requesting modes of relief under the conditions of their subscriptions to the Government. Nearly all of these letters gave the same account of the necessities of the planting interest, and held out the certain prospect of large additions to the subscriptions to the loan in case the Government should make small advances suitable to the actual necessities of the planters. In reply, the Secretary of the Treasury addressed a circular to the commissioners of subscription under date of October 17th, which presents a more distinct view of the condition of the Confederate Treasury. It shows that the Government wanted credit exceedingly; that its promissory notes supplanted all others; that it was carrying on a war for existence on credit, and the sole wonder was that it should be so successful as it had, up to that time, been. Nor was the condition of the planters much better. As they were to lend to the Government something hereafter, they asked the Government to lend them something now to carry them over the trying interval previous to the sale of their cotton. The circular was as follows: To the Commissioners Appointed to Receive 1. Whether, during the continuance of the blockade, any efforts should be made to procure further subscrip tions. 2. 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 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 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 exchange for Confederate bonds. The transaction is simply an agreement by the planter to lend the Government so much money, and in order to complete the transaction, a time and place are appointed when 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 December or June is simply a question of convenience, and works no injury to either party. The Govern ment 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 is obvious, therefore, that the subscriptions are as valuable to the Government during the blockade as after it. The blockade simply suspends the completion of the engagement. It becomes the interest of both parties to wait for a good price, and the Govern ment will readily consent 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 Government will consent to a reasonable extension of the time appointed for sale. 3. The next inquiry is as to a promise of material aid from the Government to the planters. In answering this inquiry I am to speak in advance of any act of Congress. What that body may see fit to do is not for me to determine. I can merely express the views of the Department; these must govern your actions until reversed by a higher authority. It 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 Department to lend money for the relief of any 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 a 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. I am not disposed, then, to close the inquiry with the abrupt denial thus made by the Constitution, and will proceed to consider the subject upon its intrinsic merits. Two plans of relief have been proposed: The one is that the Government 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 payment is to be made by the issuance of Treasury notes; and, therefore, if we put aside for the present the many and serious objections to the possession, transportation, and management of the crop by the Government, it becomes simply a question of amount. To purchase the whole crop would require its whole value, less the amount of subscription-cotton at $200,000,000 and the subscription at 850,000,000. The purchase would then require $150,000,000 of Treasury notes, and if to this sum be added the amount of value for other agricultural products, which would certainly claim the same benefit, the sum required would probably reach $175,000,000. The amount called for by the other plan of making an advance would depend upon the proportion of that advance. Few of the advocates of this plan have put it lower than five cents per pound on cotton, and at the same rate on other produce. It may, therefore, be very fairly set down at about $100,000,000. If we consider, first, the least objectionable of these plans, it is certainly that which requires the smaller sum; and if this be found impracticable, the larger must of necessity be rejected. Our inquiry, then, may be narrowed down to a proposal that the Government should issue one hundred millions of Treasury notes, to be distributed among the planting community upon the pledge of the forthcoming crop. The first remarkable feature in this scheme is, that it proposes that a new Government, yet struggling for existence, should reject all the lessons of experience, and undertake that which no Government, however long established, has yet succeeded in effecting. The "organization of labor" has called forth many ingenious attempts, both speculative and practical, among well-established Governments, but always with disastrous failure. With us, however, the experiment is proposed to a new Government, which is engaged in a gigantic war, and which must rely on credit to furnish means to carry on that war. Our enemies are in possession of all the munitions and work-shops that have been collected during forty-five years of peace; their fleets have been built at our joint expense. With all these on hand, they yet are obliged to expend nearly ten millions of dollars per week to carry on the war. Can we expect to contend with them at less than half that expenditure? Suppose that it may require two hundred millions of dollars, then the proposal is, that at a time when we are called upon to raise this large sum for the support of the Government, we shall raise a further sum of one hundred millions for the benefit of the planting interests. For it must be observed, first, that the Government receives no benefit whatever from this advance. The money is paid to each individual planter; and, in exchange, the Government receives only his bond or note; or, if the cotton be purchased, the Government receives only certain bales of cotton. That is to say, the Government pays out money which is needful to its very existence, and receives in exchange plant er's notes or produce, which it does not need, and cannot in any way make use of. It must be observed, in the next place, that Treasury notes have now become the currency of the country. They are, therefore, the measures of value. In this view, it is the duty of Government to limit their issue, as far as practicable, to that amount which is the limit of its currency. Every person acquainted with this branch of polítical science is aware that, if the currency passes this point, it not only becomes depreciated, but it disturbs the just relations of society, precisely as though an arbitrary power should change the weights and measures of a country. If the currency of a country should be suddenly extended from one hundred to two hundred millions of dollars, that which was measured by one dollar is now measured by two, and every article must be paid for at double its former price. The Government, from the necessities of war, is the largest of all purchasers, and thus, by a kind of suicidal act, compels itself to pay two dollars for what one would formerly have purchased, and at this rate of advance two hundred millions of dollars can effect no more than one hundred millions words, one hundred millions of dollars are actually of dollars would have effected before; or, in other sunk in the operation. Such a condition of the currency the Government has anxiously endeavored to guard against. The war tax was laid for the purpose of creating a demand for Treasury notes, and a security for their redemption. Their redundancy has been carefully guarded against by allowing them to be funded in eight per cent. bonds. If necessity shall compel the Government to issue, for the defence of the country, and to keep out two bundred millions, it is plain that every accession must impair and may defeat all the precautions. If the Government should undertake, for the sake of private interests, so large an increase of issue, it may hazard its entire credit and stability. The experiment is too dangerous, and relief for the planters must be sought in some other direction. And may not that remedy be found? In the first place let the planters immediately take measures for winter crops, to relieve the demand for grain and provisions. Let them proceed to divert part of their labor from cotton and make their own clothing and supplies. Then let them apply to the great resource presented by the money capital in banks and private hands. Let this capital come forward and assist the agricultural interest. Heretofore the banks have employed a large part of their capital in the purchase of Northern exchange; let them apply this portion to factors' acceptances of planters' drafts, secured by pledge of the produce in the planters' hands. An extension of the time usually allowed on these drafts would overcome most of the difficulties. This extension could safely reach the probable time of sale of the crops, inasmuch as the suspension of specie payments throughout the entire Confederacy relieves each bank from calls for coin. The banks are accustomed to manage loans of this character, and will conduct the operation with such skill as will make them mutually advantageous. The amount of advance asked from the banks would be greatly less than if advances were offered by the Government, and all the abuses incidental to Government agencies would be avoided. It seems to me, therefore, that it is neither necessary nor expedient that the Government should embark upon this dangerous experiment. It is far better that each class of the community should endeavor to secure its own existence by its own exertions, and if an effort be at once made by so intelligent a class as the planters, it will result in relief. Delay in these efforts, occasioned by vague expectations of relief from Gerernment, which cannot be realized, may defeat that which is yet practicable. C. G. MEMMINGER, Secretary of the Treasury. At the same time that this circular was issued, a commercial convention had assembled in Memphis, Tennessee. A series of resoldtions, expressing violent hostility to the North, Northern trade, were presented before that and demanding prohibitory legislation against body, and voted down, or rejected under such circumstances as were declared to mean that relations with the North was desired by a maa reconstruction of commercial and political jority in that convention. The military spirit raised by President Lincoln's proclamation reached an indescribable state of excitement during the months of April and May. It was estimated that a hundred thousand men were then organized, armed, and awaiting orders from the Confederate Government, in the seven States which first seceded. In Virginia sixty thousand were under artrs. This number included the troops from the other States, together with the militia of Virginia. This latter class were ready and disposed, in al parts of the State except the western, to tura out almost en masse. This enthusiasm, the prosperous condition of the people generally, under this command. enemy, so as to enable you to give the earliest authen- Official.-THOMAS JORDAN, Acting Assistant Adjutant-General. and the cause of self-defence and self-preservation in which they conceived they were about to fight, rapidly furnished the Government with the men and munitions required. Any attack upon Washington, however, was frustrated by the early arrival of Federal troops in such numbers as to render its success hopeless to the Confederate force. A line of defence was therefore adopted by the Government, the object To oppose this force, Federal troops were of which was to prevent the invasion of Virgi- concentrated at Washington, who soon took up nia by Federal troops. Immediately upon the a fortified position on the Virginia side of the secession of Virginia a force was despatched by Potomac, opposite the city. This force was Governor Letcher to seize the U. S. arsenal at under the immediate command of Gen. Scott Harper's Ferry. This effort failed in conse- until his retirement, and subsequently under quence of the destruction of the property by the Gen. McClellan. Another force was stationed officers in charge of it, but it served to place a farther up the Potomac, opposite the left wing considerable force in the northern border of of the Confederate army and on the Maryland the State, which ultimately became the left side of the Potomac. Frequent skirmishes ocwing of the army in front of Washington. The curred between the opposing forces, none of centre was stationed in a fortified camp at Ma- which were of such a serious character as to nassas Junction, and the right wing was posted exert a decisive influence upon the campaign of near the Potomac River. Such was the position the year, except the battle of Bull Run. (See of this force at its most flourishing period. At BULL RUN.) other times, when its numbers were more reduced, the left wing held an independent position, and the centre became a distinct force, resting behind its entrenchments. There were periods during the year when this army was almost destitute of the necessaries of subsistence, and its general supplies were often of the coarsest kind. This force was under the command of Gen. Johnston, who occupied a position with the troops forming the right wing, while the centre at Manassas was under the command of Gen. Beauregard. Upon taking command of this portion of the army, he issued the following proclamation: HEAD-QUARTERS, DEPARTMENT OF ALEXANDRIA, A Proclamation to the People of the Counties of Lou- A reckless and unprincipled tyrant has invaded your soil. Abraham Lincoln, regardless of all moral, legal, and constitutional restraints, has thrown his Abolition hosts among you, who are murdering and imprisoning your citizens, confiscating and destroying your property, and committing other acts of violence and outrage too shocking and revolting to humanity to be enumerated. All rules of civilized warfare are abandoned, and they proclaim by their acts, if not on their banners, that their war-cry is "Beauty and Booty." All that is dear to man-your honor, and that of your wives and daughters, your fortunes and your lives-are involved in this momentous contest. In the name, therefore, of the constituted authorities of the Confederate States; in the sacred cause of constitutional liberty and self-government, for which we are contending; in behalf of civilization itself, I, G. T. Beauregard, Brigadier-General of the Confederate States, commanding at Camp Pickens, Manassas Junction, do make this my proclamation, and invite and enjoin you, by every consideration dear to the hearts of freemen and patriots, by the name and memory of your Revolutionary fathers, and by the purity and sanctity of your domestic firesides, to rally to the standard of your State and country, and, by every means in your power compatible with honorable warfare, to drive back and expel the invaders from your land." I conjure you to be true and loyal to your country and her legal and constitutional authorities, and especially to be vigilant of the movements and acts of the Meantime, as a state of hostilities had become fully developed between the Federal and Confederate Governments, both powers now resorted to those extreme measures which follow in the hideous train of War. In the first place, Congress, on the 21st of May, passed an act prohibiting all persons indebted to individuals or corporations in the United States, except the States of Delaware, Maryland, Kentucky, Missouri, and the District of Columbia, from paying the same to their respective creditors during the war. These debtors were authorized to pay the amounts so due into the Confederate Treasury, for which they would be entitled to receive certificates bearing like interest with the debt, and payable on presentation after the close of the war. Texas, Georgia, and some of the other Confederate States, passed similar acts. It was generally estimated that the amount due from citizens of Southern States to citizens of Northern States was two hundred millions of dollars. The payment of these debts ceased, as a matter of course, upon the development of the contest, and the necessary cessation of all imports and exports between the hostile countries. The act of Congress was designed to transfer a large portion of the amount of these debts into the Confederate Treasury. In this respect it was a failure. Very few individuals would acknowledge their indebtedness, much less pay the amount into the hands of the Government. On the contrary, those who found favorable opportunities, and anticipated the ultimate defeat of the Confederacy, were generally willing to acknowledge and pay their debts to Northern citizens. Congress, at its session in July, also passed an act, banishing, within forty days, all persons who were not citizens, from the limits of the tion was issued by President Davis, in compliConfederate States. The following proclama ance with this act: PROCLAMATION. Whereas the Congress of the Confederate States of America did, by an act approved on the 8th day of August, 1861, entitled "An Act respecting Alien Enemies," make provision that proclamation should be is sued by the President in relation to alien enemies, and in conformity with the provisions of said act: Now, therefore, I, Jefferson Davis, President of the Confederate States of America, do issue this my proclamation: and I do hereby warn and require every male citizen of the United States, of the age of four teen years and upwards, now within the Confederate States, and adhering to the Government of the United States, and acknowledging the authority of the same, and not being a citizen of the Confederate States, to depart from the Confederate States within forty days from the date of this proclamation. And I do warn all persons above described, who shall remain within the Confederate States after the expiration of said period of forty days, that they will be treated as alien enemies. Provided, however, That this proclamation shall not be considered as applicable, during the existing war, to citizens of the United States residing within the Confederate States with intent to become citizens thereof, and who shall make a declaration of such intention in due form, acknowledging the authority of this Government; nor shall this proclamation be considered as extending to the States of Delaware, Maryland, Kentucky, Missouri, the District of Columbia, the Territories of Arizona and New Mexico, and the Indian Territory south of Kansas, who shall not be chargeable with actual hostility or other crime against the public safety, and who shall acknowledge the authority of the Government of the Confederate States. And I do further proclaim and make known that I have established the rules and regulations hereto annexed, in accordance with the provisions of said law. Given under my hand and the seal of the Confederate States of America, at the City of Richmond, on the 14th day of August, A. D. 1861. JEFFERSON DAVIS. By the President, R. M. T. HUNTER, Secretary of State. The following regulations are hereby established respecting alien enemies, under the provisions of an act approved the 8th of August, 1861, entitled "An Act respecting Alien Enemies": 1. Immediately after the expiration of the term of forty days from the date of the foregoing proclamation, it shall be the duty of the several district attorneys, marshals, and other officers of the Confederate States, to make complaint against any aliens or alien enemies coming within the purview of the act aforesaid, to the end that the several courts of the Confederate States, and of each State having jurisdiction, may order the removal of such aliens or alien enemies beyond the territory of the Confederate States, or their restraint and confinement, according to the terms of said law. 2. The marshals of the Confederate States are hereby directed to apprehend all aliens against whom complaints may be made under said law, and to hold them in strict custody until the final order of the court, taking special care that such aliens obtain no information that could possibly be made useful to the enemy. 8. Whenever the removal of any alien beyond the limits of the Confederate States is ordered by any competent authority, under the provisions of the said law, the marshal shall proceed to execute the order in person, or by deputy, or other discreet person, in such manner as to prevent the alien so removed from obtaining any information that could be used to the prejudice of the Confederate States. 4. Any alien who shall return to these States during the war, after having been removed therefrom under the provisions of said law, shall be regarded and treated as an alien enemy, and, if made prisoner, shall be at once delivered over to the nearest military author ity, to be dealt with as a spy or a prisoner of war, sa the case may require. This act was designed to compel all persons to sustain the Government, otherwise they would be declared alien enemies, and compelled to leave the country. The number who returned to the United States in consequence of this act was small. It served to secure a tacit acquiescence in the authority of the Confederate Government, by all who were opposed to it, and thereby enabled it to present an aspect of greater strength and efficiency. Another act was passed by Congress, declaring all citizens of the United States, except those of Maryland, Kentucky, Delaware, Missouri, and the District of Columbia who do not aid the Federal Government, to be alien enemies of the Confederate States, and confiscating all their lands, stocks, bonds, debts, and property of whatever description, within the limits of the Confederacy. The following were the instructions of the Government relative to the mode of proceeding under the act: DEPARTMENT OF JUSTICE, RICHMOND, September 12, 1861. Instructions to Receivers under the act entitled "An Act for the sequestration of the estates, property, and effects of alien enemies, and for the indemnity of citizens of the Confederate States, and persons aiding the same in the existing war against the United States," approved August 8, 1861. The following persons are subject to the operation of the law as alien enemies: All citizens of the United States, except citizens or residents of Delaware, Maryland, Kentucky, or Mis souri, or the District of Columbia, or the Territories of New Mexico, Arizona, or the Indian Territory south of Kansas. All persons who have a domicil within the States with which this Government is at war, no matter whether they be citizens or not: thus the subjects of Great Britain, France, or other neutral nations, who have a domicil, or are carrying on business or trac within the States at war with this Confederacy, are alien enemies under the law, All such citizens or residents of the States of Delaware, Maryland, Kentucky, or Missouri, and of the Territories of New Mexico, Arizona, and the Indian Territory south of Kansas, and of the District of Columbia, as shall commit actual hostilities against the Confederate States, or aid or assist the United States in the existing war against the Confederate States. Immediately after taking your oath of office, you will take possession of all the property of every nature and kind whatsoever within your district belonging to alien enemies as above defined. You will forthwith apply to the clerk of the court for writs of garnishment under the sth section of the law, and will propound to the garnishees the inters rogatories of which a form is annexed. These interrogatories you will propound to the following perseus, viz.: 1st. All attorneys and counsellors practising law within your district. 2d. The presidents and cashiers of all banks, and principal administrative officers of all railroad and other corporations within your district. All agents of foreign corporations, insurance agents, commission merchants engaged in foreign trade, azrais of foreign mercantile houses, dealers in bills of exchange, executors and administrators of estates, as signees and syndics of insolvent estates, trustees, and generally all persons who are known to do business a agents for others. The following interrogatories to garnishees have been prepared for your use, together with a note annexed for the information of the garnishee: 1. Have you now, or have you had, in your possession or under your control, since the twenty-first day of May last, (1861,) and if yea, at what time, any land or lands, tenement or tenements, hereditament or hereditaments, chattel or chattels, right or rights, credit or credits, within the Confederate States of America, held, owned, possessed, or enjoyed for or by an alien enemy, or in or to which any alien enemy had, and when, since that time, any right, title, or interest, either directly or indirectly? 2. If you answer any part of the foregoing interrog story in the affirmative, then set forth, specifically and particularly, a description of such property, right, title, credit, or interest, and if you have disposed of it in whole or in part, or of the profit, or rent, or interest accruing therefrom, then state when you made such disposition, and to whom, and where such property now is, and by whom held? 3. Were you, since the twenty-first day of May, 1861, and if yea, at what time, indebted, either directly or indirectly, to any alien enemy or alien enemies? If yea, state the amount of such indebtedness, if one, and of each indebtedness if more than one; give the name or names of the creditor or creditors, and the place or places of residence, and state whether and to what extent such debt or debts have been discharged, and also the time and manner of the discharge. 4. Do you know of any land or lands, tenement or tenements, bereditament or hereditaments, chattel or chattels, right or rights, credit or credits, within the Confederate States of America, or any right or interest held, owned, possessed, or enjoyed, directly or indirectly, by or for one or more alien enemies, since the twenty-first day of May, 1861, or in or to which any one or more alien enemies had since that time any claim, title, or interest, direct or indirect? If yea, set forth specially and particularly what and where the property is, and the name and residence of the holder, debtor, trustee, or agent. 5. State all else that you know which may aid in carrying into full effect the sequestration act of the 30th of August, 1861, and state the same as fully and particularly as if thereunto specially interrogated. A. B., Receiver. NOTE.-The garnishee in the foregoing interrogatories is specially warned that the sequestration act makes it the duty of each and every citizen to give the information asked in said interrogatories.-[Act 30th August, 1861, sec. 2.] And if any attorney, agent, former partner, trustee, or other person holding or controlling any property or interest therein of or for any alien enemy shall fail speedily to inform the receiver of the same, and to render him an account of such property or interest, he shall be guilty of a high misdemeanor, and, upon conviction, shall be fined in a sum not exceeding five thousand dollars, and imprisoned not longer than six months, and be liable to pay besides to the Confederate States double the value of the property or interest of the alien enemies so held or subject to his control.-[Sec. 8.] The constitutionality of this act was called in question in the Confederate Court for the District of South Carolina, Judge Magrath presiding. J. S. Pettigru, a citizen of Charleston, was served with the writ of garnishment, and, being a member of the bar, he appeared in open court to oppose it. The arguments which he boldly advanced show the conflict of the act with the principles of civil and constitutional liberty. In this connection, the following sentence from the speech of President Davis at Richmond, on June 1st, is worthy of notice: "Upon us is devolved the high and holy responsibility of preserving the constitutional liberty of a free government." The objections to this confiscation act were of the following nature: Was "Where is the authority given? Where is the power to call upon the citizen, in a new and unheard-of manner, to answer questions upon oath for the purpose of enforcing the confiscation law? Shall it be said that it is to furnish the means for carrying on the war? How can that be said to be necessary which is absolutely never known to have been done before? there anybody that ever fought before General Beauregard? War unfortunately is not a new thing. Its history is found on every page. Was there ever a law like this endured, practised, or heard of? It certainly is not found among the people from whom we derive the common law. No English monarch or Parliament has ever sanctioned or undertaken such a thing. It is utterly inconsistent with the common law to require an inquisitorial examination of the subjects of the laws of war. It is no more a part of the law of war than it is a part of the law of peace. * * * "All that can be said in favor of the end and object proposed, can be said in favor of the Star Chamber and the Spanish Inquisition. Torquemada set on the latter institution with the best of motives. It was to save men's souls. He labored most earnestly, in season and out of season; and when high necessity commanded, he burnt their bodies to save their souls. *** "We do not consider that the end justifies the means in these days, but Torquemada might have burnt Jews and Protestants, without calling upon their best friends to inform against them, and making it penal not to do so. * ** "The war power includes as an incident every thing which is necessary or usual. It cannot be pretended that this is necessary or usual, since it never was done before. This is not the first war that ever was waged; and the laws of war are not the subject of wild speculation. Now, the means granted to attain this end are based upon the supposition that the end deserves all commendation; that nothing in the world is more calculated to advance the repute of the country than to be keen in searching out the property of enemies, and proceeding |