USA > Georgia > The Confederate records of the State of Georgia, Vol 2 pt 2 > Part 19
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They very cordially adopt the maxim "the King can do no wrong." Of course all such are loud and clamorons in their denunciations of those who advocate a Conven- tion of States to agree upon the terms of separation and
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stop the effusion of blood. If the war should cease they must sink to their natural level, for then "Othello's oc- cupation's gone." But the advocates of free Govern- ment may safely appeal from all such to the sober sound judgment of the great mass of the American people, North and South, who bear the heavy burdens of the war, without the offices or patronage of either Govern- ment, whose sons have been conscribed and torn from them and slaughtered, many of whose homes have been destroyed, and their farms and cities laid waste, who are daily robbed of their property by impressment agents or other Government officials, without paying them any- thing for it, who bear the burdens of the enormous taxa- tion necessary to carry on the war, and support all the large classes above mentioned in extravagant indulgen- ces, and whose posterity and property must pay the im- mense public debt which is constantly augmented. And the appeal may be made with still greater force to the gallant soldier in the storms of winter and in the weary march, while amid the perils that surround them his thoughts recur to the sufferings of loved ones at home; as well as to all true Christians in both countries. Shall this bloodshed, carnage and desolation continue, to gratify the ambition and obstinancy of those in power? Or shall the people of both countries demand of their rulers that the war shall cease, and as it is impossible that the people of the two sections can again live to- gether in harmony, that a Convention of all the States be held to agree upon terms of separation, and upon the treaties necessary to the happiness and prosperity of neighboring Governments at peace with each other.
We may be told that the Northern Government will not agree to such a Convention. I readily admit that
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neither the Lincoln Government nor our own will proba- bly agree to it, till a stronger pressure of the people is brought to bear upon both, and that the advocates of this policy in the North cannot control it so long as our presses and officials, State and Confederate, denounce the movement and thereby put weapons in the hands of the Government at Washington with which to erush out this growing sentiment in the North, and more es- pecially in the North-western States. But I think recent developments have shown that this doctrine will soon bear down everything before it in the North, if met by demonstrations of approval in the South. Stop the war and eall a Convention of the States to negotiate, and the people of the North, who are as tired of it as we are will agree to a proper adjustment upon the terms above indi- cated sooner than resume hostilities.
In the meantime, till proper arrangements can be made to adjust our difficulties and stop the effusion of blood by negotiation, it is the duty of every man in the Confederacy to do everything possible in his power to strengthen and sustain the gallant and glorious armies of the States and the Confederacy. Every man able to bear arms who can be spared from home should be sent to the front, either in the armies of the Confederacy or as part of the Militia of the States, and everything possible be done to provide for the wants and comfort of our troops in the field and their loved ones at home. To enable us to conduct negotiations successfully, we must renew our efforts to strengthen our armies and maintain our cause with ability and energy in the field, cost what it may in blood or treasure. We must not, however, expect the troops to do all by hard fighting. bloodshed and the sacrifice of life. The statesman and
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the people at home have an important part to act, as well as the General and the troops in the field in termi- nating the struggle. If the troops falter and fail to do their part in the hour of battle, the statesman is ready to cast censure upon them. If the statesman neglects his part in conducting wise negotiations to stop the war, the troops have greater cause to censure and condemn him, as he has no right to trifle with their lives, and continue to expose them in battle, if the object can be attained by negotiation without the shedding of blood. In a crisis like the present, statesmanship is even more important thaan Generalship. Generals can never stop a war, though it may last twenty years, till one has been able to conquer the other. Statesmen terminate wars by negotiation.
BLOCKADE RUNNING.
After the appropriation made by the General As- sembly for the exportation of cotton and the importa- tion of such supplies of clothing for troops, cotton cards, etc., as the State might need, I sent Col. Wm. Schley, of Augusta, to England to purchase an interest in a Steamer. Finding that he was not successful by reason of the non-compliance of the other party in getting the vessel for half interest, in which I had contracted at $185,000 in Confederate States 8 per cent. bonds, I made a contract with the Exporting and Importing Company of which Col. C. A. L. Lamar was agent, for the charter of three vessels, with the privilege of adding two others which the company expected to have ready in a few months.
This contract I considered advantageous to the State, and if left free to carry it out I could have exported
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cotton enough to have purchased all the supplies the State might need, and could have imported them upon reasonable terms.
At this point I was interrupted by the interposition of the Secretary of the Treasury, who under the order of the President, refused to permit any vessel to clear un- less she carried out one-half the cargo for the Confed- erate Government upon terms which were below that the State was to pay for the use of the vessels. This restriction was placed upon the vessels of the State as it was said, by authority vested in the President by Act of Congress of 6th Feby. 1864, which prohibits the exportation of cotton, etc., except under such uniform regulations as shall be made by the President of the Confederate States. This construction could not be .sustained however, upon any known rule, as the 5th Section of the Act declares explicitly; "that nothing in this Act shall be construed to prohibit the Confederate States or any of them from exporting any of the articles herein enumerated on their own account." This provi- sion in the Act therefore leaves the States as free to ex- port on their own account, either upon vessels owned or chartered by them, as they were before that Act was passed. But as the proviso in the Act had been vir- tually repealed by an Executive order, I, in common with the Governors of Mississippi, Alabama, North Carolina, (the Governor of South Carolina concurring as shown by his letter) appealed to Congress to take up the ques- tion and make such provisions as would enable the State to exercise their just rights. After mature considera- tion, Congress passed a bill for that purpose which the President vetoed. Congress then, as I am informed by
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one of the Representatives of this State, passed a reso- lution unanimously in the House, and with almost una- nimity in the Senate, declaring in substance that the States should be permitted to export and import without interruption upon vessels chartered by them prior to the date of the resolution, which would have left the vessels chartered by this State free. This resolution was passed near the close of the session, and the Presi- dent refused, as the member informs me, either to sign it or to return it, that Congress might be permitted to vote to overrule his vetoe. Thus by the order of the Executive alone, notwithstanding the action of Congress and the provision of the 5th Section of the Aet above referred to, the States were prohibited from exporting cotton and importing blankets and clothing for their troops, and other necessary supplies, unless they would conform to such rules as the President thought proper to prescribe. These rules I could not conform to under the provisions of the contraet made with the Exporting and Importing Company without heavy loss to the State. As I was thus prohibited, by Aet of the Confederate Government from carrying out the contract, I could not insist upon the exclusive use and control of the vessels Finding the exportations of the State forbidden by the Lincoln Blockade, and placed under a partial blockade by our own Executive, I encountered great embarrass- ment in carrying out the instructions of the Legislature in this particular. If the company were compelled to submit to the terms prescribed by the President, and give up one-half the storage room of the Steamers char- tered by the State, to the Confederacy, they were unwill- ing to divide the remaining half allowed them by the President with the State. By allowing the company to
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use the name of the State in their business, which under the circumstances I felt justified in doing, and by under- taking to aid them when necessary in the transportation of cotton to the coast, I was enabled to get them, after submitting to the terms imposed by the Confederate Government, to carry out occasional lots for the State upon the vessels owned by them. I have also, through the agency of Col. A. Wilbur, exported some upon small vessels from the coast of this State. I have given one- half to the vessels for carrying out the other. Owing to the difficulties in getting letters from the other side, I have not yet received statements of the sales with the net amount of gold on deposit to the credit of the State in England. Should the sale bills and accounts current be received prior to your adjournment, I will immedi- ately lay them before the General Assembly.
About three hundred bales of cotton were shipped upon the Little Ada, (a steamer chartered by the State) upon the coast of South Carolina. This vessel, after she had been loaded with State cotton, was detained in port between two and three months by order of the Sec- retary of the Treasury, supported, as I am informed, by a military order from the office of the Adjutant-Gen- eral in Richmond, to the commandant of the Post, not to permit her to clear. Thus this State vessel was doubly blockaded and threatened, by Confederate guns in the harbor and by Federal guns outside, if she at- tempted to go to sea with State cotton to pay for blan- kets to be imported for Georgia troops in service who have great need of them.
A complete statement of the amount expended by the State for the purchase of cotton, with the quantity pur-
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chased under the appropriations, and the average cost per pound, together with the number of bales exported on account of the State, and the number now in store, with account of expenditures for storage, freight, insur- ance, lighterage, bagging, rope, compressing, etc., will be laid before the finance committee during the session. They are not transmitted herewith because reports of the agents with accounts current have not all been received.
I have purchased and had stored on one of the Islands, 30,000 pairs of cotton cards and 30,000 soldiers' blankets. I have also made contracts for soldiers' clothing, enough, I trust, with what are on hand, to carry the troops through the winter without suffering. Part of our goods were lost a few days since near Charleston with the Florie, but I hope soon to be able to import the balance.
I have lately been informed by Mr. Trenholm, the present liberal minded, practical Secretary of the Treas- ury, that vessels owned by the State will be permitted to clear without interruption by the Confederate Govern- ment. Were the question an original one, I cannot doubt that Mr. Trenholm, with the Act of Congress before him, would decide that a vessel chartered by a State has the same right to a clearance, as no substantial distinc- tion can be drawn between the right of a State to export upon a vessel owned, and one chartered by her, which is a temporary ownership. Nor can I suppose that this financial officer would willingly throw obstacles in the way of the States in making all the importations in their power. Take the case of Georgia as an instance. Her sons are in the field. They need blankets, shoes, clothing and other necessaries. The Confederate Gov- ernment is often unable to furnish these, and they suffer
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for them. The State, by her Legislature, says her sons shall not suffer, and if the Confederate Government can- not supply these necessary articles, she will. She ap- propriates money for that purpose and directs part of her surplus productions exported to pay for these arti- cles, which she directs to be imported. She charters her vessels, purchases cotton with her own money and places it on board, to be carried abroad at her own risk and expense, to purchase that she may import, at her own risk and cost, the articles necessary to the comfort of her own gallant sons who are under arms for her defense. She asks not a dollar from the Confederate Government, and even offers to pay export and import duties, (which the Confederacy has no right to demand) on all she sends out and brings in. At this point she is met with a refusal to permit her vessels to clear, unless she will submit to such onerous terms as the Confederate Executive may choose to dictate. Can this action be sustained under any law of Congress, or upon any principle of enlight- ened or sound policy? Is it not a palpable assumption of power, and an utter disregard of every principle of State Rights and State Sovereignty?
I trust Congress, when it again assembles, acting upon principles of enlightened statesmanship, will not only remove these obstacles by enactments too plain and stringent to be disregarded, but that they will invite and encourage the several States, free of hindrance or duty, to import all the army supplies and articles of absolute necessity, which the means at their command may enable them to do.
Should this expectation be disappointed, I am satis- fled it would be sound policy on the part of this State to
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purchase several vessels and to import upon them such supplies as may be needed by our troops, and for State use. The State should also export a sufficient quantity of cotton, to place gold enough upon the other side to enable her to again equip the State Road at the end of the war. In common with other Southern Roads, its iron will be much worn, and its rolling stock nearly run down, and if some forecast is not exercised, the State will not have the means at her command to put it in running order. This may be provided for in the manner above indicated with but little cost.
If the Legislature will appropriate $2,000,000 in cur- rency and authorize me to purchase vessels and cotton, and to draw upon the cotton on the other side when nec- essary to pay for them, or to purchase more cotton for shipment, if the blockade does not become more stringent, with the State's usual good luck when her affairs are well managed, I am firmly impressed with the belief that I can put gold enough to her eredit in Europe in one year to re- pair the Road within six months after a treaty of peace, or to pay a large proportion of the appropriations of the current year. To accomplish this the State must not be interrupted by Confederate interference. The exchange which the cotton, exported this year under all the embar- rassments of a double blockade, places to the credit of the State, with the cotton now in store, is worth nearly double the whole sum expended by the State in the purchase of the cotton.
OUR FINANCIAL CONDITION.
As will be seen by the reports of the Treasurer and Comptroller-General, the public debt of Georgia, inde- pendent of the appropriations of the past year, for the
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payment of which a sufficient tax has been assessed, and of the change bills issued which are payable in Confeder- ate States Treasury Notes, amounts to $14,474,270. Of this the bonded debt is $6,086,250, of which $216,000 be- ing part due is drawing no interest. The remaining debt consists of $6,993,000 in Treasury notes, and $1,395,000 in Treasury Certificates of Deposit. These notes and certificates bear no interest and the State will not be called on to redeem them in specie or bonds till six months after a treaty of peace.
Of the above $2,670,750 is the old bonded debt which existed at the commencement of the war, incurred chiefly on account of the construction of the Western & Atlantic Railroad, which is the property of the State, and for stock in the Atlantic and Gulf Road.
To meet her liabilities the State has public property consisting of the Western and Atlantic Railroad, bank stock, and railroad stock, valued before the depreciation of the currency at $8,840,124.68. And her whole taxable property worth over $700,000,000 upon a specie basis.
The debt to be paid in Confederate Treasury Notes is $1,411,442 of change bills, and $8,095,000 payable in new issue of Confederate Treasury Notes 25th December next, which by the terms of the contract are to be presented for payment by 25th March next, or the State is not bound to redeem them, but they are to be receivable in payment of public dues at any future time.
To redeem these notes and the undrawn appropria- tions of the past year, there is now in the Treasury $2,- 146,087, and a balance still due on the tax digest about
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sufficient to cover the whole amount. But as some of the counties whose digests have been returned have since been thrown within the enemy's lines, it may not be pos- sible if the enemy is not driven back, to collect a sufficient sum within the time to pay all these notes when pre- sented.
In that event I respectfully recommend that provision be made for the issue and sale of seven per cent. bonds running 20 years with semi-annual coupons to raise the Confederate currency necessary to pay the debt, which it is believed would command a high premium, or that new State notes be issued upon the same terms as the notes to be redeemed payable in new issue of Confederate notes one year after date, which could be exchanged it is believed for Confederate Notes with which to make the payment. This would enable the State to pay the debt of the Confederate notes as soon as the taxes can be col- lected.
I also recommend that the appropriations of the pres- ent fiscal year be provided for by the issue of similar notes payable in Confederate Treasury Notes, so as to enable the State to pay the appropriations out of the taxes of each year when collected, and that sufficient tax be assessed to meet all the appropriations made. As the money must be used during the year, and the taxes of each year are paid during the latter part of the year, it becomes necessary to issue these notes to meet the de- mands of the Treasury till the taxes can be collected.
As I stated in a former message no prudent man will now give his note for property at the present rates pay- able in specie after the war; nor will he borrow the pres-
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ent currency if he is obliged to use it and give his note for it at par payable in lawful money after the war, but he will sell property, even if it exposes him to much incon- venience, and raise the currency which he is obliged to use. If no member of the General Assembly, and no pru- dent constituent of any member, will raise currency for his own uses and give for it his obligation for specie after the war, no legislator should do it for the State, which is composed of the members and their constituents. If it becomes necessary to sell some portion of our property to raise the currency necessary to meet the demands upon the Treasury we should do it without hesitation, rather than incur an enormous debt in currency to be paid out of our property and that of our posterity in future at specie rates. In imposing the necessary taxes the law should make provision for the exemption of the property of the poor who can not sell property to pay a heavy tax and live, and should place the burden mainly upon the wealth of the State, where it can be borne without causing suffering or want. As the poor have generally paid their part of the cost of this war in military service, exposure, fatigue and blood, the rich, who have been in a much greater degree exempt from these, should meet the money demands of the Government.
WESTERN & ATLANTIC RAILROAD.
As will be seen by the report of the Superintendent of the Western & Atlantic Railroad, the net earnings of the road have been $1,117,522.48 for the fiscal year.
In addition to this about half a million dollars have been made to this date, by the use of the rolling stock since the road was given up to the enemy, by the purchase
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of cotton mostly in localities threatened by the enemy, which was carried to points of greater safety and sold for a profit. The sales had not been made nor had that sum been realized at the date of the Superintendent's re- port. Part of the cotton now stored will soon be sold, and the money paid into the Treasury and accounted for in the next report of the Superintendent.
When we had rolling stock which could be spared from Government transportation I thought this a legiti- mate business. When the road was taken possession of by the enemy and our engines and cars sent to the interior of the State, I found it necessary to keep the most of the employees of the road with the stock, that we might have them at command in case we recovered the road. As they were generally dependent upon their wages for the support of their families, it was necessary to keep them upon such pay as would accomplish this object.
The loss of our engines and cars has been heavy. The raid under General Sherman destroyed at Gordon and near Griswoldville seventeen passenger cars and thirty freight cars, and seriously injured four engines. At the evacuation of Atlanta, three of our engines and eighteen cars, which were in the employment of the Gov- ernment transporting ordnance and commissary stores were destroyed by order of Gen. Hood, to prevent their falling into the hands of the enemy. The families of part of the employees who have been driven out without shelter have been permitted to occupy a portion of the freight cars. The balance of the rolling stock, when not engaged carrying cotton, has been used on other roads to carry government freights for the supply of the army.
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The Confederate Government owes the road, as will be seen by the Superintendent's report, the sum of $975,- 774.60. I have made every effort in my power to collect this, but have not been successful. I trust the Govern- ment will not much longer delay payment, which has been withheld, from time to time, under various pretexts.
TAX ON BANKS.
As the Act of the last regular session imposed a tax upon both the assets and capital stock of the different banks of this State, which amounts to a double tax, and as these corporations have not the advantages over the other pursuits in the State which they had before the war, on account of the suspension of their regular busi- ness which has been absorbed by the Confederate Treas- ury, and as they exchanged large amounts of their own bills with the Government at the commencement of the war for its notes as an accommodation, which have greatly depreciated in their hands, I doubted whether it was the intention of the legislature to make this discrimi- nation against them. I therefore directed the Comp- troller-General to suspend the collection of the tax upon their capital stock and collect only upon their assets till your pleasure shall be known.
TAX ON COTTON.
As the law now stands, cotton in the hands of all per- sons other than producers, is taxable; but the cotton held by the producer in his gin house from year to year as investment pays no tax. I can see no just reason for this discrimination. If the planter sells his cotton and invests the proceeds in bonds or other property, they are
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taxable, as are almost every other species of property ; but if he considers the cotton a better investment than currency, bonds or other property, and holds it from year to year, it is exempt in his hands from taxation, while all other things of like value are taxed. If A pur- chases cotton which he holds as investment, and B raises cotton which he holds from year to year for the same purpose, I confess my inability to see any just reason why the one should pay tax and the other be exempt.
INEQUALITY OF TAX RETURNS.
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