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 Duke University Libraries 
 
 D032 
 
 2487R 
 
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 LETTER OF THE SECRETARY OF THE TREASURY. 
 
 In response to resolution of the House. 
 
 CONFEDERATE STATES OF AMERICA, 
 
 Treasury Department, 
 Richmond, Sept. 15th, 1862. 
 Hon. Thomas S. Bocoi k. 
 
 Speaker House Representatives, C. S. A. : 
 
 Sir : — In response to the resolution of the House of Representa- 
 tives, requesting the Secretary of the Treasury, to inform the House 
 what legislation (if any,) is required to facilitate his Department in 
 meeting the requisitions of the proper officers on the Treasury. I 
 respectfully report : 
 
 That by reference to my report made at the ouening of Congress, 
 it will be seen that the chief supplies furnished by Congress to pay 
 requisitions consisted of bonds, and that they could not be sold to b 
 sufficient extent to raise the money required, and that if the requisi- 
 tions then outstanding were paid in Treasury notes, they would re- 
 quire more than the department was authorized to issue. The first 
 legislation, therefore, which is required, is an extension of the 
 authority to issue Treasury notes, as recommended in the said re- 
 port. 
 
 I have taken it for granted that such authority Would be given, and 
 have pressed forward every practicable arrangement for the issue of 
 the notes. The difficulties in the way are all mechanical. We have 
 had neither engravers, nor lithographic printers, nor machinery, nor 
 materials in our country, sufficient to prepare the quantity of notes 
 required. Every effort has been made to supply these deficiencies, 
 and establishments were built up and in full operation at Richmond, 
 which promised to supply the demand, when they had to be broken 
 up and removed to Columbia on account of the» approach of the 
 enemy. The delay created by this change, and by the incidental dif- 
 ficulties attending a transportation of everything both ways, and also 
 by the management of these concerns at such a distance, has greatly 
 retarded the operations of the Department. But, such difficulties 
 cannot be relieved by legislation. We arc pressing forward the work- 
 men to the utmost diligence as the only remedy ; and as soon a& it 
 can bo done without injury to the public interests, the establishments 
 will be returned to Richmond. 
 
(iiii' other source of delay is in the great number of Clerks re- 
 quired to si Lfu and number the notes. Notwithstanding the great 
 objections which exist against so many various signatures to notes 
 n -«■< 1 a> currency, I have been compelled to employ snch a number of 
 signers, that it becomes impossible for the public t<> become familiar 
 with the signatures. But, even this great number is not sufficient at 
 present to Bupply the calls upon the Treasury. 1 have, therefore. 
 already recommended in Congress t" make a change in tin- law and to 
 authorize the printing of the signatures. 
 
 The demands upon ihr Department have lately been greatly in- 
 creased by the necessity of calling in issues which have been counter- 
 feited. It i- necessary t" furnish each Depository with a large 
 amount of notes, to exchange with the holders of those called in; 
 and this necessarily diminishes the number of notes applicable to the 
 daily requisitions, while it requires a considerable increase of force at 
 the Depositories to perform the duties required there. These difficul- 
 ties can only be removed by more extended and complete organization 
 of this branch of the Department, and to that end 1 have already re- 
 commended that it he made by Congress a separate bureau. 
 
 It is proper, also, that I should state, that under the existing mode 
 of making requisitions, there must necessarily he delay in meeting 
 them, 'flie printing, signing, and issue of notes, must be based upon 
 the average daily wants of the government. It sometimes happens 
 that the requisitions made in a single day, exceed the average supply 
 of a whole week or ten days; and during this period, other requisi- 
 tions of a more pressing character are sent in with a request that 
 they be preferred to all others. This, of course, suspends the pay- 
 ments for so much additional time, and there is no remedy possible, 
 but to increase the means of supply to the largest extent of this ir- 
 regular demand, a remedy which would he very expensive and im- 
 practicable. 
 
 All of which is respectfully submitted. 
 
 c. <;. memmln<;er, 
 
 Secretary of Treasury. 
 
l%r~> 
 
 ~ 
 
 COMMUNICATION OF THE SECRETARY OF THE TREA- 
 
 SURY. 
 
 Treasury Department, C. S. A., ) 
 
 Richmond, Oct. 3, 1862. \ 
 
 Hon. T. S. Bgcock, 
 
 S/* aker of the Housz of Representatives : 
 
 Sm : Herewith I respectfully communicate consolidated estimates 
 of the various Departments of the Government, for the month of 
 January, eall.d for by a resolution of Congress. In conformity with 
 the I nv, I now respectfully "report the ways and means to provide 
 for the same " 
 
 By the act passed at the present session entitled an act to provide 
 for the further issue of Treasury Notes, the Secretary ot the Treasury 
 is authorize 1 to issue Bonis, certificates of stock and Treasury Notes 
 in such aelitional amount as may be required to pay th2 appropria- 
 tions made by Congress ar. its last and present session. As soon, 
 therefore, as appropriations are made for payment of these estimates 
 at the present session, the authority follows to issue Bonds or Trea- 
 surv Notes to provide for them, and no further legislation on that 
 score is necessary. 
 
 The great increase which these estimates will make in the issue of 
 Treasury Notes, renders it the duty of Congress to provide some ad- 
 d tional means to sustain their credit. There are indications of various 
 kinds that some support of the currency will soon be required. The 
 large amount of Bonds which has been sold in the last month proves 
 that the credit of the Government has improved instead of being im- 
 pure 1. We' have, therefore, to look to some other cause for the ef- 
 fects upon the currency. 
 
 This cause is, in my opinion, to be found in the amount .">f issues of 
 currency notes. The whole amount of issues on the 3Jth September, 
 were $283,226,890 
 
 Of these the interest-bearing notes are • 
 
 as follows : 
 
 7.3!) int 57,160,000 
 
 3.65 int 2,021,100 59,181,100 
 
 $224,045,790 
 
To this amount must be added the unexpended appropriations of the 
 last session and the appropriations of the present session, in order to 
 
 ascertain the condition nt' things for which Congress is now to provide. 
 These expenditures will certainly add about $I5'.),(HH) IMH1 to the 
 
 above aggregate, and make a total of l.J.J. (KM LIMK). Allowing a rea- 
 
 son ible proportion of this sum to be taken in Bonds and Interest notes, 
 there will remain of g currency not 's, an aggregate of about 
 
 <.;{ i. .ri.».uti:i. 
 
 ' If we extend our view thr.vigh the months I I rusiry, March and 
 April, this aggregate must be increased a: the rate of forty millions 
 I»er month, and it is appaient to every mind that unless every possi- 
 ble means of absorption be applied, the cu r ncy must become serious- 
 ly depreciated. 
 
 llie «;ir L.t.\ which, 1 presume. Congress will impose at the annua, 
 sion, will not be received until May or June next. It is important th-it 
 before that period some other absorbent should be applied, for it is far 
 more difficult to recover a falling currency than to sustain a sound one. 
 
 ]t was to carry out views of this kind that the produce loan from 
 the planters was devised. The effect of that loan was simply to con- 
 veit currency into bonds. Unfortunately.it has not been taken to 
 such an extent as to produce the impression on the currency which 
 was intended. 
 
 The whob estimated value of that loan is only about eighteen mil- 
 lions of dollars; and if from this sum be deducted tin value of pro- 
 duce which has been destroyed or will not be forthcoming, fifteen 
 millions will be i's utmost extent. It is obvious, therefore, that some 
 other means must be added to produce a sensible effect upon the cur- 
 rency. 1 cannot too ea nesdy urge upon Congress the adoption of 
 some measure which will draw back into the treasury, within the next 
 three months, from fifty to one hundred millions of Treasury Notes. 
 
 Respectfully submitted. 
 
 0. (i. MKMMINGER. 
 
 Secretary of tht Treasury. 
 
 October, 4, 1«G2. 
 
 N. 15. This report has been delayed by reason of the fact that the 
 estimates from all the other Departments were not received until late 
 yesterday. 
 
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