Mr. Memminger to Messrs. Fraser, Trenholm & Co.
Dear Sirs: Your letter of July 21 is just received, advising sales per “Economist,” and balances to the credit of the Confederate States of £7,121 19s. 11d., and £322 8s. 9d. All these credits, with all other remittances [Page 91] from this department, you will place to the credit of the treasurer of the Confederate States, subject to his draft. The course of business at the treasury is to draw on the depositaries in favor of third parties. When these parties are creditors, the payment to them being vouched, ends the matter. When the third party is merely a disbursing officer of the government, the effect of the treasurer’s draft on the depositary is to transfer the amount to the credit of the disbursing officer, on which he may check at pleasure, he having to account at the treasury for the whole amount.
So, too, when bills of exchange, or any other remittances, are forwarded to you by the secretary of the navy or of war, they are not to be credited to the treasurer, but to the officers directed by such secretaries, and your account must be rendered to them and not to this department.
At the suggestion of our minister to England, I propose to issue cotton certificates, of which I send you a specimen. When countersigned by him, he will deliver them to you to receive the money to be paid for them. You will take care that the date in the indorsement corresponds with the date of receiving the money. The proceeds will be deposited to the credit of the treasurer, and it is important that I should be advised of any sales as promptly as possible.
In regard to the payment of the £60,000, mentioned in your letter of July 21st, to Capt. Caleb Huse, I am unable to speak definitely, until I can get sundry details, of which I will advise you in another letter.
Respectfully, your obedient servant,
Messrs. Fraser, Trenholm & Co., Liverpool, Great Britain
[The cotton certificates enclosed are the same as those quoted above.]