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SIR: I have the honor to submit the following report of the condition of this Department:
The statements for the last year were made up to the 18th February, 1862, the termination of the Provisional Government. From the commencement of the Permanent Government to the 31st December, 1862, the receipts and expenditures were as follows:
This balance consists in part of the coin on hand, received from
Bank of Louisiana, and the remainder in interest-bearing treasury notes.
The appropriations made by Congress and not yet drawn from the treasury are as follows:
The estimates for the support of the Government to first July, the end of the fiscal year, are as follows:
In order to ascertain the amount to be raised by Congress, we must add:
The debt of the Government at the same date was as follows:
In the above statement is contained a large amount of bonds and interest-bearing notes, which are on hand in the various depositories not yet issued. It is important to bear this in mind in estimating the effect of the act of the last session upon funding treasury notes. The loans in which such notes are funded, are those mentioned in the schedule as loans of May 16th and August 19th. The amount of those loans as reported at the last meeting of Congress was on 1st August $41,577,250.
This balance shows the amount of treasury notes funded in five months, the average being about 3 1-2 millions per month.
This large increase of interest-bearing notes affords satisfactory evidence that the issue of them was a judicious measure; and for any ordinary war, the bonds and interest notes amounting together to a monthly sale of twenty and a half millions would have sustained the Government without any resort to paper currency. But the estimates call for more than twice the amounts furnished by these resources; and we are compelled to resort to the Treasury Notes to supply the deficiency. It becomes, then, a most important enquiry whether the issue of such notes can be continued, and, if it can, then to what extent?
In a former report it was shown that the circulation of the Confederate States before the war might be estimated at one hundred millions of dollars. In the existing state of things, it is probable that a larger amount of currency is required. In time of peace, money passes rapidly from hand to hand, and the same money, in a single day, will discharge many obligations. A large portion, too, of the operations of business are performed by bills of exchange and bank checks. In the present stagnation of commerce and intercourse, larger amounts of ready money are kept on hand by each individual, and the Confederate treasury notes and call certificates are used as a substitutes for bills and drafts to a considerable extent. If this view be just, we may venture to add as much as fifty per cent. to the usual amount of currency, and this would raise the sum total at which it might stand, to one hundred and fifty millions. The difference between this sum and the actual circulation will show the redundancy. The actual circulation embraces not only treasury notes but bank notes and State emissions of treasury notes. In ordinary times coin would also form a part; but, at present, not only the coin but a large portion of the bank notes have been withdrawn from circulation.
The issue of treasury notes on the last day of December amounted to $290,149,692, exclusive of interest bearing notes. By adding to this sum a sufficient amount to cover the State treasury notes and the bank notes in circulation, we can arrive at the sum total of the currency. Twenty millions added to the treasury notes would probably represent the whole.
It is this aggregate which must be kept in view when we deal with
the currency as a measure of values. It is the whole mass as it is
accepted by the community in exchange for its various commodities, determines
Assuming, then, that entire confidence exists in our currency, the mere fact that its actual volume has been increased threefold would lead us to expect a corresponding increase in prices. Such increase, although eventually certain, does not usually appear at the same moment with the expansion. Like the moon's attraction upon the ocean, the time of high water is postponed for a certain period beyond the moment at which the influence has been exerted, and the length of the interval is affected by exceptional causes. But although there may be delay, the event is certain. Prices will reach the height adjusted by the scale of issues, and they can only be restored to their usual condition by a return to the normal standard of currency. In other words, the only remedy for an inflated currency is a reduction of the circulating medium. Is this reduction practicable?
Before answering this question it is important that we should be fully assured of the excessive issue of paper currency. If the country were open to foreign intercourse, the difference in value between coin and paper money would at once afford a test. But in the present condition of trade, coin cannot be imported, and gold and silver have become articles of commerce like iron and lead. They cannot, therefore, take their usual place as absolute measures of value.
Difficulties, somewhat of the same kind, attend other tests, such as bills of exchange, real estate or commodities in general use, and of which there is no scarcity. Ordinarily, the average price of wheat, grain and other like articles of prime necessity would furnish a guide. But the want of transportation causes a fluctuation of demand and supply from day to day and thus deranges prices. Making all due allowances for fluctuation we find that the present prices of such articles range at nearly three times the usual peace prices. Notwithstanding the interruption of commerce, we find also, that the foreign exchanges, and even coin stand at nearly the same rate. Reasons of a different character, but of equal force, apply to real estate and prevent its price from being a proper guide. The general increase, however, in its nominal value confirms the conclusions deduced from the other tests. These facts unite in establishing beyond doubt, both the actual redundancy of the currency and its probable rate of excess.
The remedy which is required, in order to be effective, must, therefore, withdraw two-thirds of the entire volume of the currency.
The measures already adopted by Congress were intended to act in
this direction. The treasury notes were all made fundable originally
in eight per cent. securities, and it was supposed that the holders of
notes would prefer investing them in bonds, rather than hold them
These effects are hastened by the injurious operation of the excess of currency upon the bonds of the Government. These bonds are offered as absorbents for the treasury notes, and the high rate of interest which they bear is the inducement to take them. In our present circumstances this interest must be paid in treasury notes. By depreciating these notes the interest suffers equal depreciation; and an eight per cent. bond becomes, in effect, a four or three per cent., according to the scale of issues of treasury notes. The inducements to take the bonds is thus destroyed, and the bonds themselves cease to afford relief to the currency. They offer still less inducement to any foreign purchaser, because he is informed by the rate of exchange, that his interest will be paid in a currency which must be exchanged for his own at the rate of three dollars for one. It is plain, therefore, that the change required is a prompt reduction of the currency to its normal condition. The question recurs, is this practicable?
At the last session of Congress an effort was made to attain this result by the proposal for a loan of one-fifth of all gross income, to be paid in treasury notes in exchange for bonds. The adoption of this measure would have retired a large amount of treasury notes at an early period, and would thus have checked the advance of prices. It is the misfortune of every such failure that it leaves the evils increasing at a double ratio; and subsequent remedies must be so much the more stringent. All the causes of excess continue in full operation. Prices increase; the Government is compelled to purchase, and the purchases must be paid by new issues. Each new operation aggravates the disease, and hesitation or delay is ruinous.
The conditions then which any sufficient remedy must fulfil, are first, prompt, and secondly, effective reduction. To be effective, the currency must be reduced at least to the one hundred and fifty millions already shown to be its extreme limit; and this reduction must be so prompt as to take effect before prices can undergo further increase.
To meet these conditions, I would respectfully propose that after the lapse of a reasonable time, the issues of treasury notes bearing date prior to the 1st December, 1862, shall cease to be currency. This can be done with the least possible injury by following up the action of Congress at the last session, and fixing a period of limitation for funding these notes.
As the law now stands, these notes are receivable for government dues; and the holder is entitled to fund them in eight per cent. securities, until the 22d April next, after which date he can fund in seven per cent. I propose simply to fix a period of limitation for the exercise of this last mentioned privilege; by enacting, that after 1st July next, the privilege of funding these notes, shall cease. Six months have already been allowed for investment in eight per cent. securities, according to the contract on the face of the note. Two months more will be allowed for investment in seven per cent. and if, after so long a notice, the holders do not choose to avail themselves of their privilege, the good faith of the Government will stand clear of imputation.
But it is essential to good faith that ample means should be provided by the Government, to secure and pay the principal and interest of the securities in which the holders are required to invest. This can only be effected by an ample and permanent tax. Such a tax is the corner stone of the whole fabric. Without it, the scheme has no foundation, and can secure neither public confidence nor success. The proper extent of this tax will, hereafter, be considered. It is sufficient for the present to affirm that it must, at least, pay the interest on the entire public debt.
To give completeness to the plan, it would seem proper to provide measures for any future redundancy. We are happily relieved from this necessity by the patriotic proposal of several of the States to guaranty the whole, or a large portion of the war debt of this Government. If all the States can be induced, promptly to adopt this measure, means will thereby be furnished to absorb any excess of the new issues over the proper amount of currency. The guaranty of the States will enable this Government to reduce the interest of its bonds to six per cent., and if the States can be prevailed upon to extend the guaranty so as to cover the whole war debt, or at least four or five hundred millions thereof, the saving in interest will be so great as to enable the Government, in due time, to extinguish the whole principal of its debt. Upon a debt of 500 millions, this saving will be just ten millions. The ability to apply this amount to the principal instead of the interest, affords such obvious advantages, as to ensure the favorable consideration both of Congress and of the States.
An analysis of the scheme proposed, will reduce it to three essential features:
1. A limitation upon the privilege of funding the notes issued, prior to 1st December.
2. A war tax.
3. A guaranty by the States.
I. In considering the first of these features, the first enquiry which suggests itself is, what will be the effect of this limitation? Will it arrest the circulation of the notes and lessen the volume of currency?
Its first effect will certainly be to add another stimulant to investment
in bonds. It was unfortunate that the act of the last session
postponed the change of interest for six months. The delay has deprived
the remedy of much of its efficacy, and good faith requires
But when the final date of limitation approaches, the notes will not pass readily from hand to hand; and the result will be that they are thrown out of ordinary circulation and relieve the currency to that extent. The comparatively small amount then left in the hands of individuals, will cease to have a purchasing power. They will pass only by special contract, and their chief value will consist in their being receivable for government dues. If at this point the Government will collect a tax sufficient to absorb the whole remnant, the relief afforded to the community and the currency will be made complete.
Hitherto the policy of the Government has sought to absorb the circulation by inducements alone. Bonds at a high rate of interest have been offered; but the inducement has been abated by the depreciation of the currency in which the interest is paid. It is proposed now to supply the deficiency by small portion of constraint. We see on every side of us indications of the abundance of money. Large sums are everywhere held on deposite; but the holders propose for themselves more profitable investments than public securities. The ability to keep unemployed these sums, and to hold them for an indefinite time, proves that no serious damage will be suffered by requiring their conversion into bonds. The large amount of money, which is shown by the war tax returns, to be invested at interest in private hands, confirms the belief that there is no want of capital among our people. It does not seem to be a rash conclusion, therefore, that at least three-fourths of the currency out-standing on 1st December, may be funded without substantial damage to private interests. If the remaining fourth could be absorbed by a tax, the solution of the problem would then be complete. The people are fully prepared for the payment of a high tax. It may not be practicable to place it at so high a rate as to absorb one-fourth of the entire currency to be called in, but it may approach so nearly as to leave unabsorbed only that portion which will remain out-standing, in spite of all efforts to call it in.
I will not venture to assert that grave objections may not be made to this scheme. Such objections will be found in the way of every plan. They are necessary results of the proportions of the war which is waged against us, and of the enormous sums of money required to carry it on. But it appears to me that upon due examination, these objections, if not entirely obviated, will be found to be counterbalanced by equivalent advantages.
The first and most obvious objection to the scheme, is that it is an infringement of the contract. The notes have been accepted upon the promise of the Government that they may be invested in interest-bearing public securities, and that promise is not fulfilled after the 1st July next.
It might be answered that Congress has already settled this principle
by the act of last session, which reduced the interest from eight
to seven per cent. A still better answer will be found in the reasons
which led to that act, and which make necessary the one now proposed.
A limitation of time for the performance of contracts, has never been
considered an infringement where sufficient opportunity is given to
claim performance. Justice is satisfied by giving to the party full
opportunity to receive the benefit of his contract. Upon this principle
rests every change in statutes of limitation. Examples of the
same principle are afforded in private matters, by the laws of partnership
and for the administration of
The modification of the contract is substantially for the benefit of both parties. The object in view is to increase the value of the whole remaining currency. This object it effects by increasing the purchasing power of each note, in proportion to the reduction of the whole. Assuming this reduction to be two-thirds, it follows that every holder of only one-third, in proportion of the new issues will have the same value in money left, after he shall have invested the other two-thirds in bonds. In other words, he will make a clear gain of those two-thirds. If he shall have in his possession none of the new issues, he will, nevertheless, gain in the reduced price of every article of consumption.
2. Next it will objected, that after the lapse of the period of limitation, the value of the note as money is taken away. It is true that the note will lose its function as money; but its intrinsic value is unimpaired. It is still receivable for public dues, and it still has the faith and property of the Confederate States pledged for its payment. It will even have a modified circulation. A great public exigency has arisen which compels a change, and all that the Government can do is to make the change with as little injury to private rights as possible. This it endeavors to do by avoiding any direct interference with the contract, and by giving to the holder ample opportunity to reap all its advantages. The time for the enjoyment of these advantages was no part of the contract, and every holder was bound to know that such an incident has always been considered within the control of the law-making power.
3. It will be urged that the calling in the circulation as proposed
will cause too large and sudden a contraction. An examination of
the probable state of the currency at the date of limitation will show
this objection to be unsound. The new circulation to be issued after
the first December, will on first July probably be upwards of two hundred
millions. It will be issued gradually, and will fill up the channels
left by the funding of the old issues, and so far from producing contraction,
4. A fourth objection will be found in the probable effect on the price of bonds. The large amount of currency turned into bonds will cause the supply to outrun the demand, and the usual consequences of such a condition of the market will follow. It cannot be denied that the price of bonds will probably fall. But this fall will in truth be merely nominal, and will find a full compensation in the increased value of the currency for which they are sold, and in which the interest will be paid. Those classes of the community which sell bonds from necessity or for the means of living, will probably gain more in the reduced market prices of the articles which they purchase than they will lose in the reduced interest value of the bonds which they sell. Those who hold the bonds on speculation, would gain or lose according to their ability to hold them; while all those who have taken them as investment will escape injury by simply holding them according to their original purpose. The contraction of the currency will increase the value of the interest paid there during the war; and at the end of it, they will have a security which will command a price which will amply repay their confidence.
The most conclusive answer, however, to this objection is to be found in the fact that whatever may be the amount of depreciation on the bonds, it cannot exceed the depreciation in the value of the currency. If the Government must issue an obligation in the shape of currency to pay twenty-one dollars for a barrel of flour, which in a normal condition of the currency could be purchased with seven, it is actually selling its paper at one third of its face. At the same time, by excessive issues, it is disturbing all other values, and all the commercial relations of society. The depreciation in the bonds could never reach this high rate; neither would it affect the prices of commodities or commercial relations. If then we are reduced to a choice between evils, the reduced value in the bonds is manifestly the less.
II. We come now to the consideration of the next great feature in the scheme, namely: the war tax. What shall be the subjects of that tax, and what amount should it raise?
The subjects upon which a tax may be levied are many, and the
expediency of each involves questions which it is not proposed at
present to discuss. It seems to me that a tax upon property and
income is so much to be preferred to stamp duties, excises, licenses,
and other like taxes which call for a machinery vexatious in its character
and expensive in its operation, that there will be little hesitation
on the part of Congress in its acceptance. The direct tax heretofore
levied has set in operation all the machinery necessary to levy
another; and an income tax could be collected by the same means.
It seems to me that both these forms of tax should be adopted. To
lay a sufficient tax upon property alone would require too large an
increase in the rate of last year. Such an increase would operate
with peculiar hardship upon property producing no income. On the
other hand, a tax upon income is so easily evaded, that of itself it
would furnish an insecure resource. It is proper, however, that
The next enquiry is as to the rates of these taxes, to adjust which, it must first be ascertained what amount it is necessary to raise. It has been shown that up to the first July next, the treasury notes in circulation will exceed $500,000,000 00
This amount shows the lowest figures which should be raised by tax. The soundest considerations of policy would add as largely to this sum as the people of our country can bear. If the tax be made payable in all kinds of treasury notes, it would absorb so much of the first issues, and by reducing the amount to be funded, would abate the force of the objections to the scheme. If sixty millions of notes could be thus called in, the benefits resulting would fully counterbalance every possible hardship. The currency would promptly recover its value, the bonds would become an object of investment instead of being thrown on the market, and a sure and steady system of finance would be established.
A tax of one per cent. on property if it could be made as productive as last year's, would raise twice the amount of the last war tax, say forty millions. But inasmuch as portions of the States are in the hands of the enemy, it would be proper to make a deduction of probably one-tenth, which would leave the amount at only thirty-six millions.
This sum would be subject to still further abatement, so long as the
decision of the Confederate Court of South Carolina as to the power of
Congress to tax State bonds remains unreversed
In estimating the rate of a tax on incomes, the only basis to which I can refer, is the value of the entire property in the eleven Confederate States. It may be assumed that the nett income of this property is measured by the average rate of legal interest of the money which represents its value. If the tax were laid upon nett income, and that income were faithfully returned, it could, in this way, be estimated with some degree or accuracy. But the devices are so many by which a return of nett income can be evaded as to make such returns unreliable. A resort to gross income is therefore more expedient. The difference between the two must be at least 25 per cent., but, under existing circumstances, and for the purpose of an estimate it would be prudent to disregard the difference and assume that the returns of gross income will be about equal to the average rate of legal interest. It is believed that even the proceeds of skill, speculation and labor which may be returned where no capital is involved will not materially vary the result.
The estimate formerly made to Congress of the value of all the property in the eleven Confederate States, in which taxes have been collected, was 4,632 millions. If we leave out the odd numbers in these figures, on account of such property as is now beyond the reach of taxation, and for other contingencies, we have in round numbers, 4,000 millions. The average of interest in the Confederate States may be set down at 7 per cent., which would make the total income equal, to say 280 millions. A tax of 10 per cent. on this sum would produce, in the gross, about 28 millions. And this added to the property tax of 35 millions, would raise a sum total of 63 millions of dollars, or in round numbers, sixty millions after deducting expenses and contingencies.
It will probably be insisted that there is no occasion for the imposition
of so heavy a tax; and many will contend that it is sufficient that
the Government pay the interest alone of the public debt. I ask leave
most earnestly, to dissent from this doctrine, and to urge upon Congress
a continuance of the policy already adopted by this Government
These defects are believed to be remedied by the plan upon which the one hundred million loan of this Government has been issued. It resembles the sinking fund plan in requiring an annual surplus of taxes beyond the amount of interest on the public debt. But it differs from it, in applying this surplus to the immediate reduction of principal. The machinery of a fund is dispensed with, together with all its attendant officials. The best practical investment is made by paying off so much of the public debt; and the temptations and waste incident to a fund, are avoided. The full benefit of a sinking fund is thus secured without its disadvantages. All that is required is the original adjustment of the payments of principal through an entire series of years, and the steady determination of Congress to raise annually a fixed sum sufficient to make these payments in addition to the yearly interest. The number of years in which the debt will be paid, will depend upon the amount of this fixed sum. In proportion to its excess over the annual interest, will be the shortness of the period. The first payments of principal will be comparatively small. But each will diminish the interest of the succeeding year, and will thereby set free a larger sum annually to be applied to pay the remaining principal, until the debt be finally discharged.
The act of Congress of 12th April, 1862, departed from this plan, and made the next issue of bonds payable in 30 years subject to redemption at any time after the expiration of ten years. The whole subject necessarily comes up for consideration in adjusting the tax now to be laid by Congress.
The 15 million loan carries an interest of 8 per cent; it is payable
in ten years, but may be redeemed at any time after the 1st September,
1866. The one hundred million loan is also an 8 per cent. loan,
and is made payable in instalments which fall due every six months
for 18 years, from 1st January, 1864. The first instalment of principal
of $1,288,700 is payable 1st January, 1864; the second of
If Congress should approve the application of the plan of the one hundred million loan to the whole debt of the Government, then a change should be made in the loan of April, 1862. No bonds have yet been issued under that act, and the matter is yet within the control of Congress. A modification of the law must be made at any rate to meet the reduction of interest required on notes issued subsequent to 1st December. If the scheme of finance hereinafter proposed, in rotation to the debt guaranteed by the States shall find favor with Congress, a further modification of the loan of 12th April, 1862, should be made by reducing the period for redemption from ten years to five. This change will enable the proceeds of the sale of the six per cent. bonds guaranteed by the States, to be applied in discharge of the 8 per cent. at the end of five years in case they cannot be purchased in the market sooner.
III. We come now to the third feature in the scheme, namely, the guaranty of the States.
The State of Virginia led the way and proposed that Congress should devise a plan for a loan to be guarantied by the States. Congress did not see fit to take any action on the subject at its last session. It was probably deemed best that the proposal should come from the States. An offer of their guaranty is certainly more beneficial to the credit of the Government than a request for aid. The delay has given the opportunity to the States to make the offer. The State of Alabama has offered a guaranty of her quota of the whole war debt upon certain conditions. The State of South Carolina has offered to guaranty a quota of two hundred millions upon certain other conditions. A copy of the action of their respective Legislatures is herewith submitted.
The varying action of these two States evinces the importance of settling a definitive plan by Congress. It is probable that every State will cordially respond to such plan and sustain the credit of this Government.
The great advantages to be derived from this guaranty have already been somewhat developed. It is only necessary now to give prominence to two of them: First, the opportunity which it affords of converting an eight per cent. into a six per cent. debt; and, secondly the premium which can be realized on the sale of the bonds. The former will enable the Government to establish a loan on the principle already explained, and the latter will place in its hands ample means to call in the redundancy of treasury notes after the 1st July next, and to sustain the credit of its eight per cent. securities or to purchase them.
Assuming that the States may be induced to extend their guaranty
to five hundred millions, I propose to adjust the debt upon the plan
of the hundred million loan so as to ensure its discharge within a
given period: The length of this period depends upon the sum which
Congress will devote to the annual payments. The commencement of
Before leaving this subject, I would respectfully submit that there is another plan for arranging the debt in instalments, which would produce the same results. It is by issuing all the bonds in the usual form payable at the same date, and attaching to them a condition that the Secretary of the Treasury shall annually or semi-annually, by lot, designate a certain portion to be paid off. If these annual payments were arranged on the same principle which governs the one hundred million loan, and were made equally obligatory upon the Government, the result would be the same.
A reference to a few details will conclude all I have to say on this subject:
With my last report was submitted a report from the war tax office, to which I request your attention, particularly to the observations in relation to a uniform tax on slaves. It is proper, also, to make provision for a more equal assessment of property in each State. A commission of a certain number of the tax collectors from the various portions of each State should be appointed to meet and adjust the rate at which the various kinds of property should be assessed.
It seems to me, also, that the entire machinery of assessors provided by the last act can be dispensed with by charging the duties of the assessors on the district collectors, and increasing their salaries. Exceptions may be made in case of large cities. This defect in salaries attaches to the entire arrangement of the last act. It is not a wise policy to confide large money arrangements to officers who are badly paid. The patriotism of the officers induced them, during the last year, to accept the offices with the small salaries allowed. But it would be neither wise nor just to ask a repetition of the sacrifice.
The issuing of treasury notes and the transfer of them to the
various depositaries, with the arrangements at those depositories for
their receipt, custody and disposal, have grown into some of the most
important functions of this Department. The engraving, printing
and preparing the notes involve great responsibilities and still greater
expense, and I must again urge upon Congress the expediency of
The issue and deposite of treasury notes, and the very large disbursements
now made for the war have changed the entire character
of the treasuries and depositories. Those at Richmond, Charleston,
Montgomery and Jackson have become large banks, and the number
of clerks, and the salaries of both officers and clerks are wholly inadequate.
The Assistant Treasurer at Charleston has a salary of
$2,500, and the clerks at each office are limited to $1,200. The
teller in a bank receives as much for his salary as is now paid to the
Assistant Treasurer at Charleston. That officer has, for some time,
desired to resign, and for two months I have been seeking, without
success, a proper successor. I have also been unable to procure competent
clerks at the salaries prescribed, and have been to obliged to add
to the sum. Congress may judge of the importance of these offices
when they are informed that five or six millions of dollars are frequently
in their hands on deposite. These officers, moreover, are
made responsible for the acts of the clerks under them, a liability
which, under present circumstances, no responsible party is willing to
take. Unless these difficulties are corrected, it will be difficult to retain
The collection of the produce loan together with the purchase of produce under the act of April 21, 1862, has been prosecuted with vigor. The total amount of subscriptions to the loan valued in money is about twenty-five millions of dollars; of which $7,631,044, have been collected at an expense of one-third of one per cent. The purchases of cotton, thus far reported by the agents, amount to 69,507 bales, costing $4,474,400. These purchases, at the present moment, have probably reached 250,000 bales including those of which reports are on the way. In order to dispose of the cotton, two forms of certificate have been devised. By one, the specific parcel of cotton is identified and disposed of. By the other, the Government obligates itself to deliver certain quantities at certain points, at a fixed price. By the advice of our Ministers abroad, some of the latter certificates, covering about 30,000 bales of cotton, have been placed as an experiment in the foreign market; but sufficient time has not elapsed to hear from them. The details of this branch of the Department, are set forth in the report of the clerk in charge, to which your attention is invited. The important and responsible duties entrusted to this clerk, render it proper that his office should be placed on a level with other branches in the Department. I would, therefore, respectfully recommend that the office be raised to the grade of a chief clerkship.
The collated returns of the war tax have not been completely made in all the States. The report of the chief clerk in charge of this Bureau, is so full and distinct upon the several points to which attention is due, that I cannot do better than refer you to a copy thereof, which is herewith presented. The question that has arisen between the Governor of Tennessee and the Department, is a mere question of estimate, but as it involves a large sum, the secretary would respectfully ask the direction of Congress as to some proper mode of adjusting the difference. The liberal manner in which the State has acted under the circumstances, may induce Congress to adopt an estimate which the Secretary would not feel himself empowered to accept.
The suspension of the collection in several parts of other States is also submitted specifically to the attention of Congress, in order that further instructions may be given. In relation to the State of South Carolina, it should be remarked that the Governor has directed the tax to be collected by the State tax collectors, whenever practicable, and the amount to be paid over to the Confederate Government.
The legislation which will be required to carry into effect the several matters recommended in this report, is the following:
1. An act limiting the period for funding the treasury notes, bearing date prior to 1st December, 1862.
2. Authority to issue a sufficient amount of treasury notes, to pay the appropriations required for the support of the Government to 1st July next.
3. Authority to issue bonds and stock sufficient to fund the notes already issued, entitled to be funded at eight per cent.; and those hereafter to be funded at seven per cent.
4. A call upon the States to guaranty the war debt, upon a plan to issue six per cent bonds, payable in instalments, in 25 years, upon the plan of the one hundred million loan.
5. A modification of the loan act of April 1862, by reducing the time to five years, within which the Government may redeem the bonds.
6. A war tax upon property and income.
7. The appropriation act.
8. The organization of a Bureau in charge of the issue of treasury notes.
9. Increase of the salaries of the assistant Treasurers and Depositaries and their clerks.
All of which is respectfully submitted.
In obedience to your directions, I have the honor to submit the following report in reference to the operations and results of the war tax. There are thirteen Confederate States subject to the tax, but all proceedings in relation to its collection in the States of Kentucky and Missouri, for obvious reasons, were suspended by you, and the suspension was afterwards confirmed by act of Congress, approved April 19, 1862, and consequently, no collections have been made in either of those States. Out of the eleven remaining States, the Legislatures of all except Mississippi and Texas, have assumed the tax.
Owing to circumstances growing out of a state of war, and the invasion and occupancy of various portions of the Confederate States by the public enemy, the operations under the act of 19th August, 1861, have been very much retarded, and in some particular sections it has been entirely impracticable to effect the necessary organization of officers to assess property. For these reasons, it is impossible to make a full and satisfactory report of the true results of the present system, or to exhibit the aggregate amount and value of property in the eleven Confederate States and the tax derivable therefrom, I propose, however, to give as accurate a report of the operations under the law in each State, as the materials at hand will admit, to which will be appended various tables showing the aggregate amount of each species of property taxed in each of the States, the value of that property and the amount of taxes assessed thereon. Also the amounts paid by or collected in each State, with a column showing the balance due or amount overpaid. The States will be noticed in alphabetical order, and as they appear in the annexed table “A.”
1. Alabama.—For this State a chief collector was duly appointed and
commissioned, but before he had completed the organization of subofficers,
and had made the necessary distribution of forms and instructions,
Huntsville, the place of his residence, was captured by the
enemy, and the chief collector, as he represents, very narrowly escaped
himself, leaving his family and all his papers and official documents
within the lines and power of the enemy. And being thus expelled
from his home, and cut off from all communication with his family, or
access to his office and papers, and being
2. Arkansas.—This State was sub-divided into fifty-five collection
districts, and of that number actual returns have been received and
reported by the chief collector from forty districts, leaving fifteen not
yet reported. The chief collector thinks returns will be received from
a number of these, but others being occupied by the enemy, or disturbed
by the operations of war, will not be reported at all. From
the returns actually received, and an approximate estimate for the
remaining districts, the whole tax of the State will be $725,000, and
after the deducting ten per cent., the quota of the State will be
$652,500. Of this amount $400,000 has been paid, leaving a balance
of $252,500. The invasion of the State and interference by military
operations, have prevented the chief collector from completing his
collated list. I do not know that the Legislature has assumed the
tax, having no official notice to that effect; but it has been virtually
assumed by the Executive in the payment of the above mentioned
sum. It may be proper to state that this sum was paid to General
Hindman's Quartermaster. The payment was irregular, but the error
has been corrected, by a requisition at your request, from the Secretary
of War for the amount, upon which a draft is to be in
favor of said quartermaster, and when endorsed by him, will be placed
on the Treasurer's books to the credit of the State as a payment on the
war tax. The arrangement has not been completed, and for this
reason the credit does not appear on the Treasurer's books.
3. Florida.—In this State the operations of assessment were interrupted
and in some sections, entirely thwarted by the enemy, yet the
property of the State has been regularly assessed and returned, except
that of the fourteenth district, composed of the counties of Duval and
Clay, and of the fifteenth, embracing the county of St. John's. Owing
to the continued occupation of these counties by the enemy, no returns
from them are anticipated, so the full amount of the States quota, as
4. Georgia.—All the districts of this State were assessed in due
time, and the chief collector's collated list has long since been received.
In this list, the chief collector has not shown the number of acres of
land, the number of slaves, etc., but merely shows the aggregate values
of the different species of property in each district, hence I have not
been able to ascertain the average values, as in other States.
The whole amount of tax assessed is $2,771,236 01. The nett tax, after deducting ten per cent. is $2,494,112 41, of which has been paid into the treasury $2,477,218 18 leaving a balance still due of $16,894 23.
5. Louisiana.—In this State the organization was pretty well completed,
and assessments were progressing satisfactorily, when the fall
of New Orleans threw matters into confusion, and rendered it necessary
for the chief collector, who resided there, to remove with his
records and papers to a safer locality, which occasioned considerable
delay in the progress of the work. Nevertheless, with great energy
and perseverance, Mr. Lusher, the chief collector, prosecuted his labors
and finally succeeded in having all the districts assessed, but the
interruptions and delays to which he has been subjected, have prevented
him from forwarding a complete collated list. During the
recent session of Congress, however, he presented a statement of
actual returns from nearly all the districts, and for the few remaining
an approximate estimate, based upon State documents, by which it
was shown that the liberal advance made by Governor Moore, of
$2,500,000, would probably over-pay the States quota, by $74,000,
which was refunded to the State's agent, by authority of an act of
Congress. The whole matter will be subject to adjustment according
to the true amount found to be due when full returns of assessment
are received by the department.
6. North Carolina.—Notwithstanding the invasion of large portions
of this State, and the consequent destruction and deportation of property
by the enemy, the organization for ascertaining the amount of
taxable property, was perfected with commendable dispatch, and all
the counties were duly assessed and returned at an early period
7. South Carolina.—All the districts and parishes in this State were
in like manner assessed, but several parishes contiguous to the sea and
navigable waters near the coast, have been subjected to the invasion
and depredations of the enemy. For this reason, Governor Pickens
claimed exemption, by virtue of the act of 19th April, 1862, for the
following parishes, to-wit:—All Saints, Saint George's Winyaw, Saint
agrees that these parishes shall be exempted, that the State must pay.
Many of the people of Saint George and All Saints can pay, and
that would be a question between the State and the citizens. The object
of the State in assuming the tax at all, was to enable her to extend
indulgence to those of her citizens who could not pay. For
such she would advance the money, and rely upon future payment
from them. This is as it should be. The indulgence should come
from her instead of the Confederate States.” In these views I fully
concur, and would further add, that in assuming the tax, the State
took the jurisdiction of the whole matter of taxation out of the hands
of the Government, and now exercises exclusive control over it.
The whole tax assessed upon the citizens was assumed, without exception
or distinction, and it is competent for Congress to remove that
suspension which its own exclusive action authorized for future consideration,
and to require the State to pay her full quota without
abatement, as the other States have done.
8. Tennessee.—In this State a chief collector was duly appointed
as in the other States, but the appointee, from severe illness, was
prevented from immediately qualifying. His recovery was patiently
awaited for some time, but finally, continued indisposition rendered
it necessary to make a second appointment. This all produced delay,
and before the second appointee could qualify and district the State,
and appoint sub-officers, the same was invaded, the capital fell into
the hands of the enemy, and such a state of general confusion followed
9. Virginia.—There are in this State one hundred and forty-nine
counties and eleven cities, constituting as many collection districts.
Ninety-seven counties and nine cities, have been assessed and returned,
leaving fifty-two counties and two cities, (Alexandria and Wheeling,)
which have not been assessed or returned. In the North Western
counties, for apparent reasons, no attempt has been made to appoint
officers or to procure assessments. In other counties in the Eastern
part of the State, where the people are loyal and patriotic, collectors
were appointed and had given their bonds, but before the assessors
had entered upon their duties the invasion of the enemy arrested
further progress. The aggregate amount of assessment returns as
shown by the chief collector's final report is $548,164,215 91. The
tax on this at 1-2 per cent is $2,740,821 07, and the nett tax after deducting
ten per cent., is $2,466,738 97. The amount paid by the State
as shown by the Treasurer's books, is $2,125,000, leaving a balance
of $341,738 97. For the information of Congress, in view of any future
legislation in reference to the war tax, I have deemed it proper to present
herewith a series of tales prepared by Col. H. T. Garnett, the
chief collector, as well as to give a condensed statement of his views
and suggestions in reference to the mode of assessing a more uniform
value of certain property, which I beg leave to commend as being wise
and appropriate, and well worth the attentive consideration of Congress.
The copies of his tables hereto annexed are numbered from 1
to 4. Col. Garnett refers to former suggestions made by him in reference
to the danger of rendering the ad valorem system of taxation,
unjust, unequal and oppressive, and proceeds to remark upon the
impossibility, from divers causes, of approximating a fair distribution
of the burdens of taxation upon the principle of rating all property
of the same class, &c., at one price or value. That climate, soil and
other causes, especially affecting slave property on the borders,
adjacent
10. The only remaining States to be considered are Texas and Mississippi, and as has been stated, the only States in which the war tax is being collected by Confederate officers, all the others having assumed the tax. In Mississippi all the districts in the State have been duly assessed and returned, and the amount of tax thus assessed, as shown by the chief collector's collated list, in the whole State, is $2,240,813 43, and of this amount there has been collected and paid into the Treasury $2,052,304 96.
Suspension of collections has only been asked by the chief collector in one instance, that of the county of Tishomingo which has long been in the possession of the enemy. Nevertheless, since asking this suspension the collector of that county has deposited with the chief collector about $18,000.
11. Texas.—Collated lists of property rendered for assessment of
non-rendered property, and property of alien enemies returned by
receivers under the sequestration laws, have been received from the
chief collector, which show an aggregate valuation of $318,214,621,
the tax upon which is $1,653,917 80, the tax upon unrendered property
being rated at one per cent. There has been collected and paid
into the Treasury $1,211,918 21, leaving a balance of $441,999 59.
Some months ago it will be recollected that large amounts of spurious
Treasury notes were put into circulation, and in the State of
Texas, it is reported that large sums were paid out for beef-cattle, the
consequence of which, in part, has been that several district collectors
of the war tax have come into possession of these notes in the prosecution
It is well known that the larger denominations of these spurious notes were so skilfully executed that ordinary vigilance could not detect them, and as the loss thus falling upon unsuspecting collectors, would in some cases not only deprive them of their salaries, but subject them to serious loss besides, I have thought proper to advert to the subject as one which appeals to the justice and liberality of Congress. If an act for their relief should be passed, I would suggest the propriety of requiring from each collector claiming its benefit, a statement under oath as to the manner in which he obtained possession of such notes, and that he was ignorant that the same were not genuine.
Before closing this report I beg leave through the Hon. Secretary,
to call the attention of Congress to the following suggestions. And
first, as to the necessity of additional legislation in reference to the
redemption of real property sold for taxes under sec. 12, act 19th
August 1861, and as to the mode and manner of refunding purchase
money after the lands have been redeemed. Under the section named
the owners, their heirs, &c., shall have liberty to redeem any lands and
other real property sold for taxes within two years from the time of
sale, upon payment to the collector, for the use of the purchaser, his
heirs, &c., of the amount paid by such purchaser, with interest for the
same, at the rate of twenty per centum per annum. The 3d proviso
of same section, provides that when the owner shall be in the military
service he shall have the same privilege within two years after the close
of his term of service. The collector of the district in which the property
is sold, is the officer intrusted with the execution of these provisions,
and under the act becomes the trustee of the purchaser to the
amount of purchase money received, but the act is silent as to what
disposition he shall make of it, whether he shall pay it over to the
purchaser himself, or to the chief collector. But the office of chief
collector must expire and become vacated long before the time of redemption
will expire. When the chief collector's office is vacant there
is no one designated to receive money from the collector, for all
his transactions must be through the chief collector. Under the act
all the official dealings of the department are confined to the chief
collector. The collectors functions will also expire before the time
of redemption, and in that event there will be no officer at all to receive
redemption money.
It is, therefore, obvious that Congress should make provision for
these emergencies, and designate some officer to whom owners may
apply for the redemption of their property, at any time within the
period allowed by law, and also direct what disposition such officer shall
make of such funds. If the present system of taxation be continued,
then the new officers would stand in place of the old and continue
Judge Handy, chief collector of Mississippi, represents that the collectors of that State have almost uniformly presented, for his approval, accounts for postage on letters and tax books sent to him, and for express charges upon assessment and receipt books; also, accounts for travelling expenses to and from his office, to make their payments as required by instructions. He properly decided that the present law did not provide for the allowance of such incidental expenses to the collectors. He further states that the expense of travel to make deposits, by those collectors living at a remote distance, has been onerous, and, if not refunded to them, will render the real compensation very unequal to that of those residing near him. It would seem to me just and proper to provide for the payment of all necessary postage and express charges for the transmission of tax and receipt books, and that those living at a distance, who have expended large sums travelling to make their deposits, should have the amount refunded to them, or each should be allowed a certain amount as mileage to defray these expenses. The same reasons will apply to Texas, but with greater force, by reason of the greater extent of her territory.
Owing to the difficulty, and sometimes impossibility of getting suitable persons to act as assessors, in certain localities, it has been necessary, in a few instances, to entrust the duties of assessment to the collector himself; and, in such cases, as the law will allow only the compensation of one office, it seems to me that provision should be made authorizing the payment of both the compensation of collector as well as that of assessor, as he performs the duties of both.
In some districts in States that have assumed the war tax, no collector has been appointed, and in others he has died or left the office vacant by going into the military service; and in such cases, it has been found necessary to appoint what are termed supervising assessors. The authority for this is derived under section 7, of the supplemental act of 19th December, 1861. These have performed all the duties of collector, and as some doubt exists as to the authority to pay them the compensation of collector, it would be well to provide compensation for them by act of Congress.
In view of the probable legislation of Congress in reference to the
war tax during the coming session, it will not be inappropriate to
advert briefly to the ten per centum allowed by the act of 19th August,
1861, to such States as have assumed the war tax assessed upon their
citizens. The presumption is at least reasonable, that this per cent.
was merely intended as indemnity to cover the expense the States
would necessarily incur, in collecting the tax from the people, and
that no portion of it was granted as a bonus or pecuniary inducement
to the States, beyond the actual expense of collection. Nor is it supposed
that the object of any State, in accepting the offer, was to
speculate and make money out of the Confederate States, but rather
to protect her own citizens from hardship and inconvenience, by extending
One of the most cherished and commendable objects of Congress in
raising revenue to carry on the war, has been to absorb, as much as
possible, the great redundance of circulating currency issued in consequence
of the necessities of the war, but the policy of giving the
States a heavy premium to assume the tax of their citizens, not only
involves a positive loss to the Government of considerably over one million of dollars, but seems to be in direct conflict in its results, with
the policy of reducing the amount of circulating currency. For in
some of the States that have assumed the tax their own treasury notes
have been issued equal in amount to that assumed, so that the effect
is to increase rather than diminish the paper currency of the country.
In my humble judgment it is the better policy, in every way, for the
Government to collect its own taxes from the people, who are not only
willing, but able to pay them.
I would respectfully refer to the present method settling accounts
for expenses of collecting the tax, as one involving much unnecessary
delay and expense, besides preventing the possibility of keeping an
accurate account of the settlement and suspensions. By the system
now in use, this office is one of register only, the accounts passing
for settlement through the hands of the Auditor and Comptroller,
and being filed in the office of the Register, without any information
of the settlement being conveyed to this office, so that we are absolutely
ignorant of the disposition made, or to be made, of the accounts
as they pass from our hands, and unable to supply the information
which is daily demanded of us, without oscillating perpetually in the
other offices. In addition to this a large amount of correspondence
is required by this digressive system, and much superfluous labor expended
upon its prosecution which might otherwise be avoided. I
would, therefore, earnestly urge upon the Secretary, the importance
of having a disbursing clerk appointed, who shall be bonded for the
faithful performance of his duties, and shall be finally accountable to
the Auditor for all settlements. This would ensure immediate action
In conclusion, I beg leave to recommend the suggestions contained in my report to the Secretary dated 1st August, 1862, and especially those in reference to the compensation of collectors in any future act that may be passed: that is, to allow them a given per cent. on such an amount collected, and a diminished per cent. on all sums beyond such amount, thereby offering a personal inducement for a close and rigid collection of all the taxes assessed.
Exhibiting total value of real estate and personal property in the State of Virginia, in the year 1860. The total value in the districts now assessed in the same year, and the total amount actually assessed by war tax assessors in 1861. Also, the amount remaining unassessed, supposed to be caused by the exceptions of the war tax act, such as Confederate Bonds and estates of less value than $500, &c.
Exhibiting the total values of real and personal property in the districts now assessed in the year 1860. The amount actually assessed by war tax assessors in 1861. Total of the tax at one-half of one per cent.
Exhibiting total value of real and personal property in the districts unassessed in the year 1860. The total estimated amount of the assessment under the war tax act had it been made, being in exact proportion in these as the actual assessment exhibits in the assessed districts. Also the tax upon this estimate at one-half of one per cent.
Exhibits the total population of the State by the census of 1860, total population of the districts assessed by war tax assessors, 1861, and the total population of districts not assessed.
SIR:—In obedience to your order, I have the honor to make the following report of the operations of this office, during the past year.
The whole amount of subscriptions to the produce loan, taken chiefly in the year 1861, by Commissioners in the several States appointed by you, is as follows: Cotton, 431,347 bales, worth at $50 per bale, $21,567,350; cash, $608,375; miscellaneous, $895,180; giving a total of $23,070,905. To this may be added new subscriptions taken during the past year of upwards of $2,000,000, making the amount of the entire subscription a little over $25,000,000.
To collect these subscriptions a General Agent was appointed in each of the States, with authority to appoint as many sub-agents as might be necessary to enable him to perform efficiently the duty entrusted to him and at the same time afford proper facilities to the subscribers in making payments. These agents, in most cases, have rendered weekly reports of their transactions to this office, and bonds have been promptly furnished to them by the register of the Treasury for distribution to the parties concerned.
Owing to the fact, that the market for cotton has been very limited, arising from the blockade of our ports and the general condition of the country, the amount of collections has not been so large as was, at first, anticipated. The following statement embraces the results gathered from the reports, made up to the latest period, received at this office:
The above amount embraces only the payment of cash subscriptions
and the proceeds of the sale of produce, consisting principally
of cotton. In addition to this, so far as the reports already receive
from the agents show, about 5,000 bales, estimated to be worth
The cost of collecting these subscriptions has been very small, amounting only to about $19,000, or less than one-third of one per cent.
The names of all the parties making the above payments have been appropriately entered in alphabetical order on the books of this office.
To carry into effect the act of April 21st, 1862, the produce loan agents and other special agents appointed for the purpose, have been required under the regulations of May 21st, 1862, issued by you, a copy of which you will find enclosed, to make purchases of cotton on plantations and in warehouses in towns and at railroad stations. This business being entirely new, some delay occurred in organizing a system of conducting it and of putting the necessary machinery into operation and of preparing the proper blanks and books for the use of the different agents, and of this office. These preliminary difficulties having been overcome, the system has gone fairly into operation, and so far, appears to work harmoniously, securing at once, responsibility to the Government and unity of action among the several agents. Monthly reports are received at this office from the general agent in each State, showing the amount of cotton purchased by him or under his direction and all the particulars of said purchases. These reports with their accompanying certificates of title, are carefully examined, corrected when necessary, digested and entered under proper headings on the books of this office, involving a large amount of tedious labor.
The following statement will show the purchases already made by the several agents, up to the date of their last reports:
Of the above amount, so far as the reports of agents show, $46,026 76 have been paid in cash, and the remainder in bonds. No reports from Louisiana, Texas and Florida have yet been received and no reports from any of the agents for the month of December have reached this office, but it is estimated from letters received that not less than 250,000 bales, including the number in the above statement have, up to this time, been already purchased for the use of the Government.
The average price paid on the purchases reported, is about 13 1/2 cts.
per pound, varying in different States, the average being lowest in
The two following forms of cotton certificates have been issued, one, proposing to deliver the cotton to the holder at a fixed price after the declaration of peace, and the other authorizing him, at an agreed price, to export the cotton, at any time, from the Confederate States to any neutral port, on complying with the requisitions of the law. Certificates of the former class, amounting to one million five hundred thousand dollars, have already been transmitted to the depositary of the Confederate States at Liverpool.
THIS IS TO CERTIFY, that of is the proprietor of twenty bales of cotton of 10,000 lbs. 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, Mobile or New Orleans, 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.
Here enter the weight of the bales only, and their marks:
Bales: aggregate weight a $
State of County of Town, or Postoffice,
The undersigned having sold to the Confederate States of America, and received the value of same in bonds, the bales of cotton, marked, numbered and classed as in the margin, which are now deposited at hereby agrees to take due care of said cotton whilst on his plantation, and to deliver the same at his own expense, at in the State of to the order of the Secretary of the Treasury, or his agents, or their assigns.
The undersigned, as agent of the Government, certifies that the within cotton has been examined by him or by a competent judge, and that its character will rank according to the commercial scale as 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 at the present time.
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,
No purchases of tobacco, under the act of April 21st, have been made until very recently, for the reason that a large portion of the tobacco-planting region and the principal points where it is deposited, have been either invaded or have been under constant threat of invasion by the enemy. A beginning, however, has, at length, been made, and one hundred and twenty-eight hogsheads, costing $38,970 17, have been purchased.
SIR: I have the honor, in compliance with the act of April 9th, 1862, to submit herewith, in duplicate, the estimates of appropriations required for the support of the Government during the period from February 1st to June 30th, 1863, inclusive.
SIR: I have the honor to submit the following estimate of the amount needed to meet the expenditures of the Executive office, from the 1st February to the 30th June, 1863, inclusive:
For the contingent and telegraphic expenses of the Executive office, from 1st February to 30th June, 1863, inclusive $4,000 00.
SIR: In compliance with the act of Congress “relative to the estimates of the several heads of department,” I herewith transmit you an estimate of the expenses of the Senate of the Confederate States, from the first day of February to the first day of July 1863.
SIR: I have the honor to acknowledge the receipt of your letter of the 12th instant, and in compliance therewith, I submit the following estimates of expenditures for this Department up to, and including 30th June, 1863:
SIR: In compliance with your request of the 19th inst., addressed to E. M. Garnett, clerk of the board of commissioners under the sequestration act, I submit the following estimates of expenditures for the board of commissioners up to, and including 30th June, 1863:
SIR: I beg leave to add to the estimates of expenditures for my Department, contained in my letter of 13th instant, a sum of three thousand dollars, for the purchase of a law library, for the use of the Department of Justice,. . . . . $3,000 00
Twenty-nine million, nine hundred and twenty-nine thousand, six hundred and ninety-seven dollars and ten cents.
Three hundred and fifty-seven thousand, eight hundred and ninety- seven dollars, and ten cents.
Respectfully submitted to the Secretary of the Treasury.
Twenty-one thousand eight hundred dollars.
SIR: I have the honor to submit herewith an estimate of the amount
that will be required for the pay, transportation, and other allowances
provided through this department for the army for five months, from
the 1st of February to the 30th June, 1863, viz;
The contract for salt, which expires in March, is for seventy-five cents per bushel. But it is received wet and the price of good dry salt is probably about one dollar per bushel.
The price of flour in the trans-Mississippi department is nearly double what will be the cost here. By estimating flour at $20 per barrel, it is believed that a fair average will be arrived at.
At the last session $6,825,800 was appropriated for purchasing wheat to run through the whole milling season; hence, one-half of this should be deducted from this estimate for six months.
Whisky and molasses are extra issues and not included in the cost of the ration.
CONFEDERATE STATES OF AMERICA,
WAR DEPARTMENT,
ENGINEER BUREAU, RICHMOND,December 11, 1862 .Hon. JAMES A. SEDDON, Secretary of War:SIR: Enclosed I send you estimate of funds required by the Engineer Bureau, from 1st February, 1863, to 30th June, 1863, inclusive, amounting to $3,000,000 (three million dollars).
Very respectfully, your obedient servant, J. F. GILMER,
Colonel and Chief of Engineer Bureau.
ESTIMATE OF FUNDS required by the Engineer Bureau from1st February,1863, to30th June,1863.
|
For five months expenditures for engineer service, | $3,000,000 | J. F. GILMER,
Colonel and Chief of Engineer Bureau.
SIR:—I have the honor to submit the following estimates of the deficiency, as well as the amounts necessary to be appropriated by Congress, at its ensuing session, to meet the current civil expenditures of this department to the 30th of June, 1863, viz:
In explanation of the first item in the foregoing estimates, I have to state, that while Congress made the ordinary appropriation for the civil expenditures of this department, to the 31st of January, 1863, they also passed an act, on the Saturday night preceding the termination of the session on the following Monday, and which was approved October 13, 1862, authorizing a stated increase on the compensations then received by the clerks and other employees engaged in the various Legislative and Executive Departments of the Government, but failed to make the necessary additional appropriation to carry out this act. It is thus that the deficit of $21,888 93 has occurred, and on account of which, I have thus far, been without the means of affording those employed in this department the practicable relief contemplated by this act. Relying, however, upon the good faith of Congress to make an early appropriation to meet this deficit, many of those employed in this department have incurred subsequent liabilities that cannot be discharged in the absence of such an appropriation, and if it meet with your concurrence, I would respectfully suggest that the early attention of Congress be called to this matter.
Referring to the sum of $96,750 00 named as the second item in
the foregoing estimates, I have to state that this increased ratio of
expense, as compared with my former estimates, occurs from the increased
compensation authorized by Congress to be paid the clerks
and other employees of this department under the provisions of the
act referred to above, and from the employment, by your predecessor
in office, of thirty additional clerks, since the adjournment of Congress.
These additional clerks were employed under the authority of
the Provisional Congress, as recited in act No. 53, approved March
7th, 1861, authorizing the Secretary of War to employ as many
In regard to the sudden increase that presents itself in the third
item of my estimates touching the incidental and contingent expenses
of this department proper, I deem it pertinent to state that this
increase occurs wholly from the manner in which the postage account
between the department and Postoffice in Richmond is rendered. The
practice has been uniform in regard to the pre-payment of all matter
mailed at the Postoffice here, but under a recent ruling of the Postmaster,
all letters or packages for this department received, and upon
which there remains any unpaid postage, are retained in his office,
I have thus endeavored to give you an intelligent explanation of the cause which has produced the marked increase in my present estimate for these contingencies of the department proper, with the expression of the hope that you will suggest some measure which, while not interrupting the free correspondence between the department, the army and the people, will relieve this department of the Government from a tax incurred by persons in remote sections of our country and the payment of which is regarded as a questionable diversion of the fund expressly set apart by Congress to meet the interior contingencies of the department.
SIR: I have the honor to submit the following estimates of the receipts and expenditures of the Post Office Department, for the fiscal year ending June 30, 1863.
RECEIPTS AND EXPENDITURES. The expenditures of the Department for the month of June, 1861, amounted to $135,927 24, as follows:
|
For transportation of the mails, | $82,073 64 | | |
For compensation of postmasters, | 35,047 20 | | |
For clerks in post offices, | 8,177 10 | | |
For ship, steamboat and way letters, | 116 66 | | |
For advertising, | 1,173 91 | | |
For mail bags, | 1 75 | | |
For office furniture, | | | |
For blanks and printing, | 3,000 00 | | |
For wrapping paper, | 4,732 54 | | |
For mail locks, keys and stamps, | 73 67 | | |
For mail depredations and special agents, | 669 51 | | |
For miscellaneous payments, | 861 26 | | |
Actual expenditures, | | $135,927 24 |
MEANS. The gross revenues of the month amounted to $92,384 67, as follows:
|
Letter postage, | $79,458 38 | | |
Newspapers and pamphlets, | 11,973 16 | | |
Surplus emoluments from box rents, | 953 13 | | |
| | 92,384,67 | |
Excess of expenditures over means for June, 1861, | | 43,542 57 | |
Amount of appropriation to supply deficiency in the revenues, for the year ending 1st March, 1862, approved March, 16, 1862, | | 320,060 36 | |
Excess of means | | $276,517 79 |
The expenditures of the Department for the year which ended 30th June, 1862, amounted to $2,924,290 48, viz:
|
For transportation of the mails, | 2,052,953 76 | | |
For compensation of postmasters, | 671,727 67 | | |
For clerks in post offices, | 98,821 29 | | |
For ship, steamboat and way letters, | 777 09 | | |
For advertising, | 6,897 03 | | |
For mail bags, | 714 77 | | |
For office furniture, | 81 81 | | |
For blanks and printing, | 26,602 68 | | |
For wrapping paper, | 4,854 91 | | |
For mail locks, keys and stamps, | 689 40 | | |
For mail depredations and special agents, | 20,206 50 | | |
For miscellaneous payments, | 17,112 07 | | |
For postage stamps, | 22,869 50 | | |
Actual expenditures, | | $2,924,290 48 |
MEANS. The gross revenues for the year which ended June 30th, 1862, amounted to $1,911,189 05, as follows:
|
Letter postage, | $1,005,985 04 | | |
Newspapers and pamphlets, | 205,200 87 | | |
Surplus of emoluments from box rents, | 7,935 20 | | |
Postage stamps, | 692,067 94 | | |
| | $1,911,189 05 | |
Excess of expenditures over revenues, | | $1,013,101 43 | |
Deduct excess of means from report for month of June, 1861, | 276,517 79 | | |
Appropriation to supply deficiency in the revenues of the department, approved August 29, 1861, | 500,000 00 | | |
Appropriation to supply deficiency in the revenues of the department, approved April 3, 1862, | 1,451,602 31 | | |
| | 2,228,120 10 | |
Excess of means to 30th June, 1862, | | $1,215,018 67 |
ESTIMATES of receipts and expenditures for the year ending 30th June,
1863.
EXPENDITURES.
|
For transportation of the mails, | 2,493,389 86 | | |
For compensation of postmasters | 671,727 67 | | |
For clerks in post offices, | 98,821 29 | | |
For ship, steamboat and way letters, | 777 09 | | |
For advertising, | 6,879 03 | | |
For mail bags, | 714 77 | | |
For office furniture, | 81 81 | | |
For blanks and printing, | 30,000 00 | | |
For wrapping paper and twine, | 8,000 00 | | |
For mail locks, keys and stamps, | 689 40 | | |
For mail depredations and special agents, | 25, 206 50 | | |
For miscellaneous payments, | 17,112 07 | | |
For postage stamps, | 22,869 50 | | |
Estimated expenditures, | | $3,376,268 99 |
MEANS.
|
For letter postage, | $1,005,985 04 | | |
For newspapers and pamphlets, | 205,200 87 | | |
For surplus emoluments from box rents | 7,935 20 | | |
For postage stamps, | 692,067 94 | | |
| | 1,911,189 05 |
The foregoing estimates are based upon the Auditors report of the receipts and expenditures of this department, for the year ending June 30th, 1862, with the exceptions that the increased cost of printing, together with the increased cost of wrapping paper and blanks, render it necessary that the sum to be appropriated for these separate heads should be increased.
I therefore respectfully request that the sum of one million, nine hundred and eleven thousand, one hundred and eighty-nine dollars and five cents ($1,911,189 05,) be appropriated for the post office department, for the year ending June 30, 1863, out of any monies in the Treasury, arising from the revenues of the post office department, and that the further sum of two hundred and seventy-six thousand, three hundred and fifty-five dollars and twenty-three cents ($276,355 23,) be appropriated out of the current revenues of the department, for the year which ended June 30th, 1862. This latter appropriation is necessary to close the accounts of the department for that year, the Congress having failed, probably by inadvertence, to appropriate a portion of the current revenues of the department for that year, as requested in my estimates.
From this it will be seen that no further grants from the general treasury are required for the current fiscal year, ending June 30th, 1863. And it is estimated that at that date there will remain in the treasury to the credit of this department, the sum of eleven thousand, one hundred and fifty-three dollars and fifty one cents, ($11,153 51,) of the grants herefore made from the General Treasury, in aid of the revenues of this department.
The act of the 19th of April last, establishing a universal rate of letter postage, of ten cents, from and after the first day of July last, and the act approved the twenty-first day of April last, reducing the rates of commissions to be allowed to postmasters, from and after the first day of July last, have not been in force a sufficient length of time to enable me to determine the effect they are to produce on the revenues of the department, as the accounts in the current course of business in the Auditor's office have only been settled up to the thirtieth of June last. But I have no doubt, judging from such unofficial information as I have received, that they will produce an increase of revenue, though I have no information of a character which would authorize a change of the above estimates.
The report of the First Auditor has not yet been received of the current receipts and expenditures, on account of the constructing, repairing, and operating the military telegraph lines. As soon as it is received, which will probably be in a day or two, I will send the estimates for that branch of the service.
SIR:—I have the honor herewith to submit a statement of the amount of receipts and expenditures, on account of military telegraph lines, from June 1st, 1861, to September 1st, 1862, together with an estimate of the amount required for constructing, repairing and operating military telegraph lines to June 30th, 1863.
I have no report of the amount of expenditures since the 1st September last, the date at which Wm. S. Morris was appointed agent and charged with the management of the telegraph lines. And I have to make a merely arbitrary estimate for the expenditures on account of telegraph lines from that date to the 30th of June next.
To cover the probable expenditures on existing lines, and for building and repairing lines, I request the appropriation of fifty thousand dollars ($50,000 00.)
This amount will not all be expended unless the exigencies of the war should require the construction and use of additional lines of telegraph.
SIR:—In compliance with an act, approved April 9, 1862, “relative to the estimates of the heads of the several departments,” I have the honor to submit the following estimates of the sums required for the compensation of the Postmaster General, Chiefs of Bureaux, Clerks, Messengers and laborers, from 1st February to 30th June, 1863, inclusive.
Also, the further sum of $7,715 24, that being the amount of additional estimated compensation of the clerks, messengers and laborers, in this department, from October 13, 1862, to January 31, 1863, under an act approved October 13, 1862, “to increase the pay of certain officers and employees in the Executive and Legislative Departments.”
And also, an appropriation of $5,000 will be required for the contingent fund of the department.