Correspondence of Confederate Treasury and
Navy Departments.
[Duplicate.]
Mr. Memminger to Mr. Mason.
Treasury Department, C. S. A.,
Richmond,
October 24, 1862.
Sir: The cotton certificate forwarded in your
despatch to the secretary of state has been carefully examined, and,
upon due consideration of the views expressed by you, and the probable
ability of the government to furnish cotton, a form of certificate has
been adopted somewhat differing from yours. The differences are
several.
1. In price. It has been deemed best to fix this at five pence sterling.
This form of stating the price has been adopted in preference to cents,
because it expresses the rate to be paid for the cotton here, in a
currency which is understood to carry a right to its value in London.
Thus, five pence sterling would imply a right to receive that amount in
London, or so much of our currency as would be required to purchase five
pence sterling. At the present rate of
[Page 83]
exchange, this would amount to twenty-five cents.
It is thought that this would not be too high a price to demand.
2. The cotton is made deliverable at certain ports instead of any port at
the option of the holder. This change is required by the fact that most
of our cotton is at the west; and if a large portion should be required
at an Atlantic port, it would be impossible to perform the contract. It
is, therefore, proposed to issue separate certificates for the Gulf and
Atlantic ports in such amounts as can be delivered at each.
3. The certificates are demandable only after peace, and within six
months thereafter. It would be impossible to transport the cotton to any
great amount until that period. To provide, however, for such cases as
might desire to run the blockade, it is proposed that for some premium,
to be adjusted by yourself, you should place in the contract an
additional clause as follows, which you are authorized to add:
“The government further agrees to deliver the cotton called for in this
certificate at any time during the pending war, at any port within its
possession, (if practicable to transport the cotton to the port
selected,) upon the payment by the holder of the cost of
transportation.”
4. In case, by accident or otherwise, the holder should omit to make his
demand within this period, the certificate is not forfeited, but the
government has the option to deliver the cotton or return the amount
paid, say one thousand dollars, with interest at six per cent. from the
issue of the certificate.
5. An additional formality is added in requiring your indorsement. This
addition has been made to guard against capture or loss of the
certificates on their way to Europe, and also to give an official
supervision there.
I now send, by Mr. G. N. Sanders, one thousand certificates for the Gulf
ports and five hundred for the Atlantic. In order to have the payments
put in proper, form you had better deposit the certificates with our
depositaries, Messrs. Fraser, Trenholm & Co., at Liverpool,
directing them to receive the money and deposit the same to the credit
of the treasurer of the Confederate States. This will place matters in a
business form, and relieve you of the necessity of keeping accounts.
In order that you may act understandingly, permit me to apprise you of
such financial arrangements as have already been made.
At your suggestion, I have appointed Mr. James Spence, of Liverpool,
financial agent, and have requested him to negotiate for the sale of
five millions of dollars of our eight per cent. bonds, if he can realize
fifty per cent. on them. I have already sent over two millions of the
bonds, and will send another million in a week or ten days. Mr. Spence
is directed to confer with Messrs. Fraser, Trenholm & Co., who had
previously been made our depositaries at Liverpool. Had I known with
certainty where you were I would also have referred him to you, and I
would thank you now to place yourself in correspondence with him.
I have also directed Mr. Spence to endeavor to negotiate for the
application of two and a half millions of coin (which I have here) for
the purchase of supplies and munitions for our army. I hope that this
coin will be accepted by British houses in payment at the rate of
sterling in England, less freight and insurance. It seems to me that,
upon its transfer to British owners, they could obtain transportation
for it on their vessels-of-war from any confederate port, inasmuch as it
would be bona fide British property, and in any
event the holder of the transfer would have a certain security.
A difference has been made by our congress in some of its appropriations
for the navy. Those for building vessels are payable in bonds. It
follows, therefore, that a discrimination must be made in the
application of funds from the different sources of revenue, of which you
will take notice.
Under the act of Congress authorizing me to accept produce in exchange
for
[Page 84]
bonds, (of which I enclose a
copy,) I have procured a considerable amount, which is stored on
plantations or in warehouses. I send you a copy of one of the
certificates taken for the cotton. These certificates it is proposed to
offer for sale in Europe. They would give to the purchaser an absolute
right to the particular lot of cotton, with the privilege of shipping
the same, and may be preferred by some purchasers.
In conclusion, allow me to request your co-operatiom in these various
plans, and any suggestions which your experience and observation may
deem proper.
Respectfully, your obedient servant,
C. G. MEMMINGER, Secretary of the
Treasury.
Hon. J. M. Mason,
Commissioner Canfederate States, London.
AN ACT to authorize the exchange of bonds for articles in kind,
and the shipment, sale, or hypothecation of such articles.
Sec. 1. The Congress of
the Confederate States of America do enact, That the
secretary of the treasury be, and he is hereby, authorized to
exchange the bonds or stocks of the Confederate States for any
articles in kind which may be required for the use of the
government, the said articles to be valued according to such
regulations as the said secretary shall make.
Sec. 2. It shall be the duty of the
commissary and quartermaster generals to direct their various
officers to receive, at the place of purchase, all such articles
purchased as are applicable to their several departments, and to
apply the same in the same manner as if purchased directly by
themselves; and the officer to whom each article is delivered shall
be charged with the value as declared by the purchase, and shall be
bound to account for the same.
Sec. 3. The said secretary is also
authorized to accept, for the use of the goverment, in exchange for
the said bonds or stock, cotton, tobacco, and other agricultural
products in kind, which have been subscribed to the produce loan, or
which may be subscribed in kind, at such rates as may be adjusted
between the parties and the agents of the government: Provided, That, in no event, shall he receive
of cotton or tobacco a greater value than thirty-five millions of
dollars; and the said secretary is further authorized to deposit the
same at such places as he shall deem proper, and to procure advances
thereon by hypothecation, or to ship the same abroad, or to sell the
same at home or abroad, as he may deem best; and to assist these
operations the said secretary may issue produce certificates, which
shall entitle the party to whom issued, or his indorsee, to receive
the produce therein set forth, and to ship the same to any neutral
port in conformity with the laws of the Confederate States.
Sec. 4. The secretary of the treasury may,
from time to time, appoint and dismiss such agents as he may deem
requisite to carry into effect the provisions of this act. Their
compensation shall be a brokerage upon the business completed by
them at such rates as the secretary of the treasury shall adjust by
general regulation.
Sec. 5. The secretary of the treasury may,
from time to time, issue regulations for carrying out all the
details involved in the provisions of this act, which shall be
obligatory upon all parties concerned therein.
Approved, April 21, 1862.
[Untitled]
Confederate States of
America.
$1,000 bond.
Cotton certificate.
No. _______.
This is to certify that ———, of ———, is the proprietor of twenty
bales of cotton of 10,000 pounds weight, rating New Orleans middling
at five pence sterling, which shall be delivered by the government
of the Confederate States of America to—— -——, or order, at the port
of Charleston or Savannah, subject only to charges for compressing,
putting on board ship, and existing government dues, the latter not
exceeding one-eighth of one cent per pound.
The cotton will be delivered as soon as demanded by the holder of
this certificate, upon the government receiving thirty days’ notice
of such demand. The demand must be made within the six months after
the declaration of peace between the present belligerents in
America; in default of a demand within that period, this certificate
may be discharged by payment of one thousand dollars, with interest,
at the rate of six per cent. per annum, from the date of issue
indorsed hereon.
This certificate will confer no right until verified and indorsed by
the commissioner of the Confederate States in Great Britain.
In testimony whereof, the register of the treasury hath hereunto
affixed his name and the seal of the treasury department, at
Richmond, this first day of November, 1862.
——— ———, Register of
Treasury.
Copy of “produce
certificate.”
[Here enter the weight of the bales only, and their marks.]
42 bales good ordinary cotton, marked C. S. A., and 15 bales middling
cotton, of same mark.
| Good
ordinary. |
Middling. |
State of
Mississippi, |
| Pounds. |
Pounds. |
Pounds. |
County of Madison. |
| 461 |
463 |
455 |
[Town, or post office, Canton.] |
| 437 |
515 |
515 |
The undersigned having sold to the Confederate States of
America, and received the value of same in bonds, the
receipt whereof is hereby acknowledged, 57 bales of
cotton, marked, numbered, and classed as in the margin,
which are now deposited at his plantation in said
county, hereby agrees to take due care of said cotton
while on his plantation, and to deliver the same, at his
own expense, at Canton, on the N. O., I. & G. N.
railroad, in the State of Mississippi, to the order of
the secretary of the treasury, or his agents, or their
assigns.
THOS. G. SMITH. |
| 442 |
488 |
500 |
| 462 |
458 |
488 |
| 428 |
490 |
461 |
| 505 |
479 |
490 |
| 388 |
458 |
422 |
| 508 |
460 |
448 |
| 451 |
442 |
451 |
| 443 |
423 |
458 |
| 438 |
467 |
450 |
| 457 |
468 |
465 |
| 476 |
478 |
451 |
| 443 |
461 |
483 |
| 440 |
437 |
461 |
| 495 |
432 |
|
| 466 |
466 |
|
| 433 |
453 |
|
| 454 |
453 |
|
| 453 |
9,685 |
|
| 458 |
9,538 |
|
| 9,538 |
19,223 |
6,995 |
| 57 bales. Aggregate
weight, 26,218, at 8¾, $2,294 07. |
[Page 86]
[Untitled]
The undersigned, as agent of the goverement, certifies that the
within cotton has been examined by him, and that its character will
rank according to the commercial scale as middling and good
ordinary, and also that the weights and marks are as described—the
cotton being in good merchantable order and safely stored in a
covered building.
The undersigned certifies that the price agreed upon is a fair market
price a the present time.
WILL. G. BAILEY.
Confederate States of America,
Treasury Department, ______ ______,
186–.
This is to certify that the within and above described cotton has
been sold to ______ ______,, and delivery is hereby ordered to be
made to him or his order, with license to export the same from the
Confederate States to any neutral port, on complying with the
requisitions of the law.
Given under my hand and the seal of the treasury department on the
year and day above mentioned
______ ______, Secretary of the
Treasury.
