Hrw 
 
 Duke University Libraries 
 (Communication 
 Conf Pam #344 
 
 D'^^moissY 
 
MESSAGE OF THE PRESIDENT. 
 
 Richmond, Va., March 12, 1863. 
 To the House of Representatives : 
 
 In response to jour resolution of the 28th ultimo, I herewith trans- 
 mit a communication from the Secretary of the Treasury, relative to 
 cotton purchased for the government in the State of Louisiana. 
 
 JEFFERSON DAVIS. 
 
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COMMUNICATION FROM SECRETARY OF TREASURY. 
 
 Treasury Department, C. S, A., ) 
 Richmond, March 11, 1863. J 
 
 The President : 
 
 Sir :• In reply to a resolution of the House of Representatives* 
 passed on the 28th ultimo, and received at this office on the 5th inst.* 
 requesting the Secretary of the Treasury *' to inform Congress of the 
 amount of cotton purchased by the government in Louisiana, specifying 
 the names of individuals by wKom bought, and. whether paid for in 
 bonds or notes, and at -what average price, together with the names of 
 the agents that have been heretofore and are now employed by the 
 government in purchasing cotton in Louisiana, and whether any dis- 
 crimination has been made by them in their purchases between the 
 producer of the article, and those who held it on speculation ; also the 
 regulations which have been adopted by said agents under instructions 
 from the department, either for the purchase or security of said 
 cotton," I have the honor to report: 
 
 That up to* the date of, and embracing the latest returns received at 
 this office, 42,374 bales of cotton, costing $1,988,481 40 have been 
 purchased by the agents of this department in Louisiana, of which 
 amount $1,980,101) have been paid in bonds, and $8,381 40 in trea- 
 sury notes. The prices paid vary from 8 to 13 1-2 cents per pound, 
 tl^e average price of- the entire purchases in the State being $9 38 
 cents, of the above 36,870 bales, costing $1,789,545 67 of which 
 $8,345 67 were paid in notes, were purchased under the direction of 
 J. D. D. DeBow, Esq , General Agent of the Produce Loan for Lou- 
 isiana and Mississippi, by the following sub- agents appointed by him, 
 and approved by this department, viz : Ro. Murdock, B. Hardison, F. 
 M. Dawson, B. Cahn, John Hunter, II. S. Fulkerson, A. L. Page, S. 
 B. Young, Chas. Cosgrove, J. H. McNeil, Ulger Lawre, Thos. Reed 
 and Z. Preston. 
 
 In November last, deeming it impracticable for one person to super- 
 intend properly the purchase of cotton for the government on both 
 sides of the Mississippi river, I divided the district of Mr. DeBow, 
 and appointed A. W. McKee, Esq., agent for western Louisiana. 
 Under his direction 3,704 bales of cotton have been purchased, costing 
 in bonds $198,900, and in treasury notes $35 73. These purchases 
 were made by M. M. Rhorer, sub-agent. Mr. McKee has also ap- 
 
pointed James Rhorer and J. T. Belknap, sub- agent, but no purchases 
 by them have yet been reported. No other persons than those men- 
 tioned are known to this office as having been authorized, previously 
 or at this time, to purchase cotton for the government in Louisiana, 
 and so far as known, the same persons are still employed in making 
 purchases. If others have been employed their names have not yet 
 been reported by the general agents for confirmation. 
 
 I am unable to answer the inquiry whether any discrimination has 
 been made by the agents in their purchases between the producers of 
 cotton and those who hold it on speculation, possessing no information 
 whatever upon the subject. No instructions have been issued which 
 have authorized any such discrimination, and the reports of agents do 
 not show whether any discrimination has been made. All the agents 
 have been instructed to purchase cotton on as advantageous terms to 
 the Governm.ent as possible, paying in each case as much in bonds 
 and as little in cash as the parties selling could be induced to take, 
 and in no instance to pay more than the current market price.* 
 
 In roply to the last clause of the resolution, I have the honer to 
 report that no special regulations known to this Department have been 
 adopted by the agents in Louisiana, or in any other State, for the 
 purchase and security of Cotton. All the purchases of cotton by the 
 agents of this Department have been made under the general regula- 
 tions, a copy of which will be found enclosed, issued in May last, to 
 carry into effect the act of April 21st previous. These regulations 
 are still in force with some slight modifications, which have been made 
 in several instances to meet particular cases. No. 1 has been entirely 
 changed. Instead of calling for proposals for sale of cotton by public 
 advertisement, the agents have been instructed to purchase cotton at 
 the market price if it could not be obtained for less, and the limita- 
 tion in No. 2 as to the number of bales to be purchased on any one 
 plantation, has been rescinded. These are the only changes which 
 have been made, except in the form of the transfer of title. The new 
 form is given in the "addendum to the regulations" appended. It 
 will be perceived that in this form, a certificate of the purchasing 
 agent is required to the effect, that the cotton is in good merchantable 
 order, and is safely stored in a covered building. Every invoice of 
 cotton which has been purchased on a plantation has this certificate 
 attached to it. 
 
 Respectfully submitted, 
 
 C. a. MEMMINGER, 
 Secretary of Treasury. 
 
REGULATIONS AS TO THE PURCHASE OF PRODUCE 
 UNDER THE ''ACT TO AUTHORIZE THE EXCHANGE OF 
 BONDS FOR ARTICLES IN KIND, AND THE SHIPMENT, 
 SALE, OR HYPOTHECATION OF SUCH ARTICLES," 
 APPROVED APRIL 21, 1SG2. 
 
 The several Proluce Loan Agents appointed in each State shall 
 accept cotton in kind, which has been or shall be subscribed, in ex- 
 change for the eight per cent, bonds of the Confederate States, under 
 the following regulations: 
 
 1. Each agent shall, by public advertisement, call for offers to be 
 made, setting forth the quantity, price and quality of the cotton, and 
 the place at which the same is deposited ; and upon receiving the 
 offers, he shall cause the cotton offered to be examined, and the price 
 ascertained and reported upon, by an experienced cotton broker, and 
 upon being satisfied that the purchase would be desirable, cand that 
 
 • the place of deposit is safe, he may conclude the purchases to the 
 extent prescribed to him by the Secretary of the Treasury. When 
 bids are equal, preference shall be given to subscriptions heretofore 
 made to the Produce Loan. 
 
 2. No purchase shall be made of cotton deposited on a plantation, 
 unless the seller shall engage, in writing, to take due care of the 
 cotton while on his plantation, and to deliver the same, at his own ex- 
 pense, at the usual place of shipment or railroad delivery, whenever 
 d:manded by the Secretary of the Treasury, or his agents, or his or 
 their assigns ; nor shall any such purchase be made of less than 
 twenty bales on one plantation. Wherever purchases of less than one 
 hundrcil bales arc made, the Grovernment Agent is authorized to have 
 them collected and deposited in a warehouse, or upon some plantation 
 where proper provision can be made foK their secure custody, and for 
 delivery at the usual place of shipment; and he shall report to the 
 Chief Agent the arrangements thus made, with proper documents for 
 the delivery. 
 
 3. Before completing the purchase the Government shall see that 
 each bale of cotton is sufficiently secured with rope and bagging, and 
 is deposited in a warehouse, or if on a plantation, in some enclosed 
 or covered building, secure from fire, to remain under charge 'of 
 the seller as warehouseman. The purchase shall then be completed 
 by the delivery of Confederate bonds or stock for the .price, in ex- 
 
6 . 
 
 oliange for the documents transferring the property to the Confede- 
 rate States, and stipidating as specified in these reguhxtions; and 
 thereupon the agent shall placp upon each bale a Government mark 
 to identify the same. In all cases he shall take the transfer of title in 
 duplicate, setting forth the particulars, one of which he shall forward 
 to the Chief Produce Loan Agent of the State wherein the cotton is 
 deposited, and the other to the Treasury Departnieut at the seat of 
 Government. 
 
 4. The General Agents will keep books, in which proper entries 
 shall be made, designating the location, quality, quantity and value 
 of each purchase, with such other particulars as shall identify the 
 same ; and shall register and file the receipts of the sellers ; they 
 shall alsj debit the subordinate agents with all bonds furnished thorn, 
 and credit them with the value of the cotton purchased, together 
 with the commissions for purchasing, and at the end of each month 
 shall make to the Secretary of the Treasury a full report of all their 
 transactions and those of their different ngents. 
 
 5. The agents to purchase shall be, if possible, cotton brokers, or. 
 other experts. "When they are not such, the agent shall call in aid 
 one or more cotton brokers or other experts, to settle the classification 
 and value of the cotton, and the commissions allowed shall be such as 
 are customary for such service, to be certified for payment monthly by 
 the General Agent to the Treasury D partment. 
 
 6. The Produce Loan Bureau at the seat of Government shall re- 
 gister the original receipts forwarded to the Treasury Depaitment, 
 and shall keep books, in which shall be entered such p irticulars as 
 are necessary to identify the parcels of cotton, their location, sale, or 
 final disposition. Accounts shall also be kept of the certificates 
 issued, and of the disposition thereof, and of the proceeds of sale, or 
 hypothecation of them; and such other accounts shall be kept as 
 may be necessary and proper for carrying into complete effect the act 
 of Congress. 
 
 7. The following shall be the form of the transfer of title and re- 
 ceipt when the cotton is deposited on a plantation : 
 
 ADDENDUM TO REGUL\TIONS. 
 
 In place of No. 7, in Regulations, as to the purchase of produce, 
 upder the act to authorize the exchange of bonds for articles in kind, 
 &c., use the following form: 
 
 Bales ; Aggregate Weight a % 
 
 STATE OF 
 
 COUN 
 
 TV OF- 
 
 Town, or PosloJ/lce,- 
 
 The undersigned having sold to the Confederate States of America, 
 
 and received the value of same in bonds, bales of cotton, 
 
 marked, numbered and classed as in the margin, which are now de- 
 posited at hereby 
 
 agrees to take due care of said cotton Avhilst 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. 
 
 186 
 
 The undersined, 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 mar- 
 ket price at the present time. 
 
 Each agent shall note upon the margin of the transfer of title, of 
 which the form is given above, in addition to the marks and num- 
 bers, the weight of the cotton purchased. 
 
 C. G. MEMMINGER, 
 Secretary of Treasury, 
 August 26, 1862. 
 
 8. When the cotton is deposited at a warehouse, the form of trans- 
 fer shall be in the usual and customary form in private transactions. 
 
 9. Whenever the cotton shall be sold by the Government agents, a 
 certificate shall be appended to the transfer of title in the following 
 form: 
 
 Confederate States of America, 
 
 Treasury Department, 
 
 186 ■ 
 This will certify that the 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 Confede- 
 rate States to any neutral port, upon complying with the requisitions 
 of the law. 
 
 Given under my hand and seal on the year and day above men- 
 tioned. 
 
 Secretary of Treasury. 
 
 10. Subscribers to the Produce Loan may, at any time pay the 
 amount or value of their subscriptions in treasury notes, instead of 
 delivering the same in kind, and such payment shall entitle them forth- 
 with to receive bonds or certificates of stock in exchange. 
 
 C. G. MEMMINGER, 
 
 Secretary of Treasury. 
 May 21, 1862. 
 
AN ACT 
 
 To authorize the exchange of bonds for articles in kind, and the 
 shipment, sale, or hypothecation of such articles. 
 
 Section 1 . The Congress of the Confederate States of America do 
 enact. That the Secretary of the Treasury be, andhe is hereby, au- 
 thorized to exchange the bonds or stocks of the Confederate States for 
 any articles in kind, which may be required for the use of the Govern- 
 ment, the said articles to be valued according to such regulations aS 
 the said Secretary shall make. 
 
 Sec. 2. It shall be the duty of the Commissary and Quartermas- 
 ter Generals to direct their various officers to receive, at the place 
 of purchase, all such articles purchased as are applicable to their 
 several departments, and to apply the same in the same manner as if 
 purchased directly by themselves; and the officer to "whom each article 
 is delivered shall be charged with the value as declared by the pur- 
 chase, and shall be bound to account for the same. 
 
 Sec 3. The said Secretary is also authorized to accept, for the use 
 of the Government, in exchange for the said bonds or stock, cotton 
 tobacco, and other agricultural products in kind, which have been 
 subscribed to the Produce Loan, or which may be subscribed in kind, 
 at such rates as may be adjusted between the parties and the agents 
 of the Governinent : Provided, That in no event shall he receive of 
 cotton or tobacco a greater value than thirty-five millions of dollars; 
 and the said Secretary is further authorized to deposit the same at 
 Buch places as he shall deem proper, and to procure adwnces thereon 
 by hypothecation, or to ship the same abroad, or to sell the same 
 at home or abroad, as he may deem best ; and, to assist these opera- 
 tions, the said Secretary may issue Produce Certificates, which 
 shall entitle the party to whom issued, or his endorsee, to receive 
 the proauce therein feet forth, and to ship the same to a y neutral 
 port, in conformity with the laws of the Confederate States. 
 
 Sec. 4. The Secretary of the Treasury may, from time to time, ap- 
 point and dismiss such agents as he may deem requisite to carry into 
 eflFect the provisions of this act. Their compensation shall be as 
 brokerage upon the business completed by them at such rates as the 
 Secretary of the Treasury shall adjust by general regubttion. 
 
 Sec 5. The Secretary of the Treasury may, from time to time, 
 issue regulations for carrying out all the details involved in the 
 provisions of this act, which shall be obligatory upon all parties con- 
 cerned therein. 
 
 Approved April 21, 1862. 
 
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