Remarks of Mr. 
 Conf Pam 12mo #292 
 
REMARKS / -^ 
 
 5- 
 
 OF 
 
 MR. BOYCE, OF GREENVILLE, 
 
 IX THE 
 
 HOUSE OF REPRESENTATIVES 
 
 OF 
 
 SOTJTH OA.ROI.INA. 
 
 ON THE 9TH DECEMBER, 18G3. 
 
 THE BILL FOR STATE ENDORSEMENT OF CONFEDERATE BONDS 
 BEING THE SPECIAL ORDER FOR ONE O'CLOCK, P. M. 
 
 COLUMBIA, S. C. : 
 
 R. W. GIBBES, PRINTER TO THE SENATE. 
 1862. 
 
THE 
 
 WILLIAM R. PERKINS | 
 LIBRARY 
 
 OF 
 
 DUKE UNIVERSITY 
 
 Rare Books 
 
Con- 
 
 SPECIAL ORDER for 12 J o'clock, P. M., December 9. 
 
 THE COMMITTEE OF WAYS AND MEANS 
 
 To whicli was referred. the resolution to inquire into the expediency of of- 
 fering the Confederate Government to guarantee its bonds for the pro- 
 portionate share of the State of South Carolina, according to the basis of 
 the late war tax, to the amount of one hundred millions of dollars, beg 
 leave respectfully to report unanimously : 
 
 That they have had the same under consideration, and agree in the prin- 
 ciple of the resolution, but propose that the amount be changed from one 
 hundred to two hundred millions of dollars. 
 
 The large and increasing circulation of Confederate Treasury Notes de- 
 mands a remedy. The amount already in circulation is much greater tha n 
 even in time of peace is necessary for our internal and foreign commerce. 
 In the present state of aflfairs, a smaller amount is needed than is then. 
 The consequence is, that our citizens and Government have to give prices 
 so greatly enhanced as to be matter of great detriment to the public. Our 
 individual citizens are already suffering greatly ; and the Government not 
 only suffers with them now, but lies under the further liability of having to 
 give its obligations at the current prices in securities which must finally be 
 redeemed in gold and silver. 
 
 Attempts have been made by the Confederate Government to reduce this 
 circulation, by futiding portions of it in Confederate bonds. The extent, 
 however, to which these have been taken has, from various reasons, been very 
 limited. A portion of the hundred million loan yet remains to be issued. 
 This arises not from the want of ability to take it up on the part of our 
 citizens, as is readily seen from the large surplus of circulation above re- 
 ferred to. More than this, other securities, and especially those of the 
 States, paying a lower rate of interest, are extensively sought after, and 
 are bringing high premiums. The object of this endorsement would be, so 
 far as the State of South Carolina is concerned, to give the Government all 
 the advantages to be obtained by uniting State security to that offered by 
 the General Government. It is hoped that the other States of the Confed- 
 eracy will unite with us in so doing ; but it is eminently proper that South 
 Carolina should take the lead in this kind of expression of full confidence 
 in the final success of our Government. Yet is it proper in so doing that 
 
slie should secure for herself and her citizens the right to obtain the bonds 
 thus endorsed, provided the bids they make are equal to those of any others. 
 In order to secure the largest price, also, and to give the whole country a 
 fair oi3portunity to invest in these securities, they should be ofiered by pub- 
 lic advertisements to the highest bidder, in such portions and at such times 
 as the Confederate Government may deem best. 
 
 A further reason which has governed the Committee is, that the General 
 Government is constantly in need of foreign exchange. At present, this 
 must be bought at two hundred per cent, premium, or three hundred dol- 
 lars must be given in this country for one hundred dollars in England. If 
 our Government should offer bonds abroad, they would be met by the dec- 
 laration that, from the very nature of our Government, it is liable to be 
 broken up by the action of the States, in like manner as has been done in 
 the separation from the United States of the States now forming this con- 
 federation. Not only this, our Government is, by persons abroad, still 
 looked upon as an experiment, which may prove a failure. But the States 
 are regarded as permanent, and their existence under all circumstances, con- 
 sidered as certain. An obligation, therefore, given by a State, either di- 
 rectly or indirectly, possesses abroad an actual value. It is manifest that 
 sales of Confederate Bonds, made with State endorsements, will, therefore, 
 not only be possible, but may be made at prices that will secure exchange on 
 terms far more advantageous to the Government than the present or proba- 
 ble future rate of exchange will make possible ; and a portion of the bonds 
 thus endorsed could be profitably used in this way. It is upon these 
 grounds that the Committee approve the principle of the resolutions. 
 They have, however, owing to the large amount of surplus circulation to 
 be absorbed, as well as the future demands of the Government, thought 
 best to recommend a larger sum than was stated in the resolutions. The 
 sale of one hundred millions of dollars would not be adequate to retire 
 more than two hundred millions of Treasury Notes, and would leave two 
 hundred and thirty millions still in circulation. Thirty millions of dollars, 
 with the issues constantly making by the Government, and the bills of our 
 banks still in circulation, would be abundant for the necessities of trade. 
 This would be accomplished if, with the two hundred millions of endorsed 
 bonds, four hundred millions of currency could be absorbed, and this is ex- 
 tremely probable. 
 
 The Committee beg leave to report by Bill. 
 
 JAMES P. BOYCE, for the Committee. 
 
A BILL 
 To authorize the State to guarantee the Bonds of the Confederate States. 
 Sec. 1. Be it enacted hi/ the Senate and House of Representatives, now 
 met and sitting in General Assemhhj, and hy the authority of the same. 
 That the Governor of the State for the time being be, and he is hereby, 
 authorized and directed to endorse the guarantee of the State upon the 
 bonds of the Confederate States of America, upon the application of the 
 Government of the said Confederate States, to an amount equal to the pro- 
 portionate share of the State of South Carolina, of the sum of two hundred 
 millions of dollars, in the ratio of the representation of said State in the 
 House of Representatives of the Confederate Congress, thereby pledging 
 the faith and the funds of the State for the payment of the principal of the 
 said bonds, and the interest to accrue thereon : Provided, That such of the 
 bonds as shall be sold within the Confederate States, shall be disposed of to 
 the highest bidder : And provided, farther, That in the sale, whether in 
 this country or abroad, of these bonds, this State and the citizens thereof, 
 shall have the right to purchase the bonds under its guarantee in preference 
 to all purchasers at equal bids. 
 
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In the House of Representatives of the State of South Carolina, Tuesday, 
 December 9th, 1862, the i^recedlng report and Bill being under considera- 
 tion, Mr. James P. Boyce, of Greenville, spoke in substance as follows: 
 
 Mr. Speaker : At the time I introduced the resolution which has 
 secured this favorable report from the Committee of Ways and Means, I 
 was not aware that any suggestions of the kind had been made. T confess 
 that during several months the plan had appeared, to my mind, so advan- 
 tageous, that I was surprised that it had not been proposed. Before the 
 Committee however had acted upon the matter, the honoiable Chairman of 
 the Committee of Privileges and p]lections (Mr. Trenholm) showed me a 
 letter from one of the most distinguished financiers of this country, suggest- 
 ing the importance of such a scheme, and urging him to bring it to the 
 attention of this Legislature. The morning after this report and Bill was 
 presented to this House, the resolutions of the State of Alabama, to which 
 I shall hereafter refer, appeared in the Guardian of this city. And a para- 
 graph in the Charleston Courier of yesterday, copied from the Richmond 
 Whig, informs us that at as early a period as the IGth of May last, the 
 subject of a guarantee of the Confederate debt, by the difierent States, was 
 suggested to Congress by the State of Virginia, accompanied by the request 
 that it be brought before the attention of the other States. The facts thus 
 referred, joined with the unanimous approval of a Committee of the House, 
 have emboldened me to task your attention for a short time, that I may 
 urge upon this House a measure which I deem of the most vital interest to 
 the whole Government and people. 
 
 The superficial observer looks upon our present national struggle simply 
 in the light of its military achievements. The abilities of our generals, the 
 bravery of our troops, the successful issue of our battles, these are to such 
 an one the great objects of interest, and by them he measures the fate of 
 the Republic. That these do enter, and that largely, into the issue, none 
 can question; without the men whom God has given as leaders, and without 
 the troo2}s, such as have never been excelled for bravery or daring, more 
 than all, without that success which, under the blessing of God, we have 
 achieved, w^e might well despair, nay. we had been already ruined. 
 
 But there is another power which, though almost unperceived, affects more 
 deeply t'ae issues of the contest — the power of the purse — a power in modern 
 times that far exceeds that of the sword, and, in fact, controls the world. 
 It has long been recognized in Europe, the crowned heads of which are 
 completely dependent upon it. At its beck war is made and peace is de- 
 
clared. In this hemisphere, in the present war, its gigantic influence has 
 been felt. Were it not for the aid obtained from Wall street and the other 
 financial circles of the United States, the President of that Government 
 could not continue a single day this unnatural warfare; on the other hand, 
 had not the action of the banks of this Confederacy been as patriotic and 
 self-sacrificing as it has, we were already ruined — flying before our ruthless 
 foe — unable to sustain ourselves at all against the vast hosts which have 
 been raised up against us. They who wield the finances in each section 
 have, in truth, in their grasp the welfare of both, and we have reason not 
 only to be proud of, but to be grateful to, the banks of this country for the 
 unlimited confidence which they have manifested towards our Government, 
 and the determination they have shown to sustain it at all hazards, even at 
 the risk of their own financial destruction. 
 
 It is because the welfare of the country is thus so indissolubly united 
 with its financial prosperity, that I regard the measure before iis as one of 
 the greatest importance. It is in vain to attempt to raise armies if, when 
 called into the field, they can neither be paid, supported, clothed, fed or 
 armed. To do these things requires immense resources. With prosperous 
 finances, we can fight on amid the heaviest losses and reverses. With our 
 finances in ruin, our armies become demoralized, our sources of supply are cut 
 off", and the advancing tread of the invader is triumphant. How important 
 then, that they be looked after, and if evils arise, that the cause of those 
 evils, and their proper remedy, be sought. 
 
 The time has come, Mr. Speaker, when it behooves us to look well to this 
 matter. The present condition of our finances is fearful, and were it not 
 for the remedy which we have, would be actually appalling. The amount 
 of our expenditures has already reached five hundred millions of dollars. 
 Do gentlemen realize this? Do they know what it means ? Have we ever 
 attempted to get any other conception of it, than that it is a vast sum of 
 money, beyond the ordinary measure of calculation? Let us try to realize 
 what it is. According to the lute War Tax returns, the whole value of 
 South Carolina, lands, negroes, money at interest, and the various other 
 items included under that scheuie, was a little less than four hundred mil- 
 lions of dollars. And the Confederacy has spent five hundred millions of 
 dollars in the prosecution of the war thus far. It is as though the 
 whole State of South Carolina had been blotted from the resources of this 
 Confederacy. Nor can we fully estimate what the war has actually cost our 
 people, until an accurate account be taken, as well of the vast amount of 
 voluntary contributions for hospital purposes, raised by the energies mostly 
 of the noble women of the land, as of the munificent expenditures of indi- 
 vidual citizens and corporations in raising and equipping regiments for the 
 field. 
 
9 
 
 Yet large as have been our expenditures, they arc daily on the increase. 
 Our armies are larger, articles of food, clothing and ammunition are at en- 
 hanced prices, while the scarcity of many articles on the one hand, and a 
 redundant currency on the other, are increasing our indebtedness in a ratio 
 two-fold, if not three-fold, greater than the past. 
 
 Nor, sir, so long as this war continues will the people consent that they 
 be reduced at the risk of hazard from the enemy, and, perhaps, final loss. 
 If, however, some way may be devised by which this scarcity of necessaries 
 and redundancy of currency can be remedied while the war is prosecuted 
 with unabated vigor, the hearts of all will be cheered and the spirit of deter- 
 mined resistance rendered, if it be possible, more intense. 
 
 So much, Mr. Speaker, for the amount of our expenditures. Let us now 
 look at another evil connected with the currency, its great and rapid depre- 
 ciation. According to the market quotations, gold is now selling at Bich- 
 mond at a premium of two hundred and twenty-five per cent., or three hun» 
 dred and twenty-five dollars of the Confederate bills must be given for one 
 hundred dollars of gold. Specie is the standard of value, and judged by 
 that standard, Confederate notes are now worth but a little over thirty cents 
 on the dollar. Is it to be wondered at that prices are so high ? The one 
 who sells is obliged to get more than three times what an article is worth in 
 hard money to secure its value in that money. But there is another cur- 
 rency which may be compared with that of the Government. I refer to the 
 bills of the banks. They are not redeemable in specie, and yet sell for a 
 premium in Confederate Treasury note^. I take the following quotations of 
 premiums from the Ilichmond Dispatch of December 5 : 
 
 Buying price of the Brokers. Selling price. 
 
 Bank notes— Virginia :!2J 25 to 30 
 
 North Carolina.... 20 do. do. 
 
 South Carolina... 23 do. do. 
 
 Georgia 23 do. do. 
 
 Nay, sir, I am informed by a most respectable broker of this city, that 
 bank notes have sold here at a premium of 30 per cent., and that in 
 Alabama and States further West, they will command 40 to 50 per cent. 
 When, sir, shall this end ? The banks of the Confederacy are linked to 
 the fate of the Government — with it they are destroyed, with it they live. 
 Nor can any satisfactory explanation be given, save the unlawful uses of 
 those notes for purposes of trade with our enemies, and their scarcity, arising 
 from the hoarding of them by parties from more or less apprehensions of 
 final failure. Either of these motives is disgraceful to the true patriot, and 
 deserves the most serious reprobation of every lover of his country. Yet 
 with all this, the fact of this depreciation must be noticed as a fearful evi- 
 dence of the want of proper value on the part of the Confederate Treasury 
 
10 
 
 notes. In another manner, very similar to that with gold, may the depre- 
 ciation of this currency be recognized. Foreign exchange, commonly 
 sterling, has generally rated at a small advance beyond gold. At present it 
 commands about the same premium. The last sales of which I have heard 
 Avere at one hundred and ninety-five per cent., or two hundred and ninety- 
 five dollars for one hundred. Doubtless, however, it has risen since then, 
 for it has lately been rising rapidly. Indeed, the price of gold at Richmond 
 fixes the fiict that sterling must be at a premium of two hundred and twenty- 
 five per cent. 
 
 The rapidity of this depreciation is also worthy of attention. In Sep- 
 tember, 1861, several months after the war had commenced, some time in- 
 deed after the battle of Manassas, the current bills of the country were, in a 
 sense, equivalent to specie. Though the banks had suspended specie pay- 
 ments, they were yet furnishing their customers, as a matter of favor, with 
 specie in small quantities at par. But the depreciation began ; before 
 Christmas, specie was worth about twenty per cent, premium ; before April, 
 1862, it was at fifty per cent. -, and thus has it gone on until it has reached 
 its present rate. In September of this year, sterling exchange sold at a 
 premium of simply one hundred and ten per cent.; since then it has risen at 
 least ninety more, if not one hundred and fifteen. The depreciation in this 
 respect is alarming; unless some arrangements can be made for such ex- 
 change, it will soon be at five hundred, nay, who can tell that it may not yet 
 reach five thousand. 
 
 The depreciated currency thus referred to is an evil to all parties. It is 
 true that those who are mere producers get a larger price for all articles, 
 but that price is paid in a depreciated currency and the increase of 
 price subjects its recipients to the murmurs of the consumer, and the 
 charge of extortion. On the other hand, the consumer who does not produce, 
 finds the money which was formerly perhaps an ample support, now insuffi- 
 cient, even with the most rigid and pinching economy. He has to receive 
 all dividends, interest and income of any kind in a kind of money worth 
 only one-third of what he should have received, whether estimated by gold 
 or by the articles of consumption it will buy. If he be one whose whole 
 income has been stopped by the war, and he has to borrow money now to be 
 hereafter paid, he is placed in the deplorable condition of one who obtains 
 from a money lender a loan to be repaid in good funds, but which he has 
 himself to receive in paper which he will do well to dispose of at one-third 
 of its face. That which is peculiarly unfortunate for the Government is 
 that it is in this latter category. It is giving its notes payable at a future day 
 in gold and silver, and receives for them articles only at the rates produced 
 by this depreciation. 
 
 Let us look next to the causes of this depreciation. The first and most 
 
u 
 
 manifest one is that the Government issues are not redeemable in gold and 
 silver. This is self-evident, yet it is worthy of notice because it helps us to 
 arrive at the remedy. It is the cause that is at the foundation of the whole 
 matter. The nearer the issues of the Government are put on a specie basis 
 the less will be the depreciation, and the lower will be the prices of all com- 
 modities. But we must not deceive ourselves by supposing that this is the 
 only cause; were there full confidence in the Government there would be 
 no need of a constant interchange of gold and bills for each other. But 
 here is a real diflSculty, and there is no use in denying it; there is a want of 
 that full confidence of success, which should universally prevail. There is 
 not felt as should be the determination to sink or swim with the good ship of 
 State. Men are not keeping or buying gold to use it, but to hoard it. The hope 
 of each one is that if wreck should come he will be able to save something at 
 least of the property he formerly had. This same idea prevails as to bank 
 notes ; they are at least, so these persons think, safer than some other cur- 
 rency. The time will come, say these timid gentlemen, when no other bills 
 will be taken but bank notes, and hence we are putting up a few for the use 
 of our families. Away with the unfounded doubt — success must be ours or 
 we must be exterminated in the struggle. If my country dies I want no 
 more life, no more happiness, least of all would I save from the wreck the 
 small pittance that may thus be concealed from the grasping hand of 
 Northern despotism. Only thus can the true patriot feel; yet we must 
 realize the fear that I have referred to, and if possible, take advantage of it 
 for the benefit of our country. 
 
 A third cause of depreciation is the redundancy of the currency. This 
 has arisen from the necessity the Government is under of issuing Treasury 
 notes for its civil and war expenses, and the impossibility of retiring these 
 through their funded debt. All efforts thus to remedy the redundancy of the 
 currency have resulted in at least partial failure. The cause of this failure is 
 undoubtedly due to want of confidence in the Government. This is evident 
 from the fact that State securities and individual bonds are greatly in de- 
 mand. While the Confederate Government sells but slowly at par, bonds 
 which bear eight per cent, interest, the bonds of States, private parties, cor- 
 porations and cities, at lower rates of interest, are sought after. The lack 
 of confidence I speak of is one engendered on the one hand by the nature 
 of the Government, and on the other by the supposed questionable issue of 
 the present war. It is felt at home to some extent, but especially abroad. 
 Europeans have seen one great Union destroyed, and they know not when 
 the new one will also break into fragments. They understand not the homoge- 
 neous character of our people — and the dependence on each other which is 
 felt — nor do they realize as they should that the history of the past has 
 been a lesson to the States of this Confederacy, and that mutual respect for 
 
12 
 
 the rights of each other will not only mark a people trained to sentiments 
 of honor, but that mutual interest will also create mutual forbearance. But 
 the redundancy of the currency is not simply due to want of confidence, 
 but to the excessive issues forced by this state of affairs upon the Govern- 
 ment, Before the war the circulation of the country for business purposes 
 was about eighty millions of dollars. The issues of the Government thus 
 far have been, 
 
 Treasury Notes $250,000,000 
 
 Interest-bearing Notes 80,000,000 
 
 Call Loan, at any time convertible into Treasury Notes 60,000,000 
 
 Total circulation $390,000,000 
 
 Making in all three hundred and ninety millions of dollars which is cir- 
 culated. The funded debt gives us seventy-four millions additional, but is 
 not current funds. According to the estimate of some we had less, accord- 
 ing to others more, circulation in time of war than in time of peace. Tak- 
 ing eighty millions as the circulation before the war, we have no need for 
 more than one hundred millions at the utmost — some say thirty millions 
 would do, with the additional circulation of the outstanding bank bills ', per- 
 haps it would be enough. 
 
 Another cause of depreciation arises from the fear of repudiation. The 
 example supposed to have been set us by our revolutionary ancestors has 
 had its weight. It should have been remembered, however, that Continen- 
 tal bills, not bonds, were their issues, and that the effort should be, there- 
 fore, to tend to depreciate the bills, but not the bonds of this Government. 
 But I am glad to be able to say that even in those days there was not an 
 entire repudiation. The course pursued was to adopt a scale showing the 
 value of these bills in gold and silver in the various years of the war, thus 
 showing what the Government received in actual value for them. For the 
 earlier years the payment was at par or very nearly so. It was only in the 
 later years that heavy discounts were charged. Nor was it until the lapse 
 of many years and the repeated calls of the Government had rendered it al- 
 most certain that the notes had mostly been paid up, that the Government, 
 after due nonce, passed the acts stopping further payments upon them. 
 The Government of these States will not, they cannot go so far, on the 
 contrary dollar for dollar will be paid, at least upon the issues already 
 made. Unfortunately, however, all do not feel this measure of just faith 
 in the integrity of the Government — and hence the sad depreciation of its 
 issues. 
 
 From this view of the evils it will readily be perceived what kind of 
 remedy must be secured. It must be one which will relieve the redundancy 
 of the currency, and, therefore, must be a funded debt. Again, it must be 
 
13 
 
 such a funded debt that the Government shall be able, at a high premium, 
 to retire its circulation. And yet further provision must be made, which 
 ■will furnish us foreign exchange at cheaper rates than are now current. 
 
 Such, Mr. Speaker, is the remedy proposed in the Bill. It is that a 
 funded debt should be created of this hundred millions of dollars — that it 
 shall combine the credit of the Government and that of the individual 
 States — and that it shall be sold at home or abroad to the highest bidders. 
 In this way provision is made for such sales of new Government issues as 
 shall command high premiums at home as well as for the creation of foreign 
 exchange. 
 
 The whole schem.e rests upon the simple fact that the securities of the 
 States are highly valued both in our own country and in Europe. A State 
 endorsement even on the bonds of some petty railroad is enough to make 
 them sell at a high premium. I have been furnished with the following as 
 the present rates of State securities; some of them, as the Tennessee 6's, are 
 really in a condition of half repudiation — that State having refused to pay 
 the interest upon that portion of her bonds held in the United States unless 
 some equits^ble arrangement shall be made between the Governments in the 
 treaty of peace. 
 
 Tennessee G's, (suspended) 115 
 
 Louisiana " probably about 125 
 
 Virginia " 125 
 
 North Carolina G's, (old) 135 
 
 '' 8's, (new) 120 
 
 South Carolina G's 125 
 
 " '' 7's 120 
 
 Georgia G's 135 
 
 " 7's 140 
 
 We have in this table most signally exhibited to us the high state of 
 credit of the different States. While this is so, however, it is notorious that 
 the Confederate eight per cent, bonds are as it were begging for purchasers 
 at par ; yet that if security be added to them, however slightly, they are 
 materially improved, is seen in the fact that the fifteen million loan, because 
 there is pledged for it one-eighth of a cent per pound upon all cotton ex- 
 ported, is now selling at 110. It has been thought by some that this is be- 
 cause the Government pays interest on this loan in specie. It is a mistake. 
 Its coupons are paid like all others, only in current funds. And yet here 
 is a security valueless indeed unless the war shall result advantageously^ 
 which at once raises the price of the bonds ten per cent. Let the combi- 
 nation be made of State and Confederate securities, and you have bonds 
 which cannot be bettered in this country. They must bring very high 
 premiums; and the issue now proposed of them will not only relieve the 
 
14 
 
 country of redundant currency, but will enable the Government in a way 
 perfectly honorable to pay its debts at a heavy discount, and to secure ample 
 resources both at home and abroad for its present exigencies. The following 
 table will show the rate at which four hundred and sixty millions of cur- 
 rency may be brought down to the amount really necessary for trade. Cir- 
 culation will be reduced to a material extent if the bonds are sold afc the 
 rates suggested : 
 
 $200,000,000 at 120 will retire $240,000,000, and leave $220,000,000 
 200,000,000 " 140 '' ^' 280,000,000 '' " 180,000,000 
 200,000,000 " 150 " '' 300,000,000 " " 160,000,000 
 200,000,000 '' 175 '' " 850,000,000 " " 110,000,000 
 200,000,000 " 200 '^ '' 400,000,000 '' " 60,000,000 
 Again, selling at the rates above suggested, how cheaply do we pay off 
 our debt, and that without dishonor, but as a mere matter of business ex- 
 change. 
 
 At 120 per cent, we pay at 83 1-3 cents in the dollar. 
 u 140 '^ ^' " " '' 71 7-10 " " " 
 
 a 150 ^i ^( " '^ " 66 2-3 " " '' 
 
 a 175 u " a u a 57 1.7 a a a 
 
 u 200 '^ '^ " ^^ " 50 " '^ " 
 
 A"ain : In the production of foreign exchange by these bonds, we will be 
 greatly benefited. One hundred pounds sterling now cost three hundred 
 pounds in this country. It may soon be worth five hundred pounds. If no 
 remedy be applied to the advance on it, who can say that in the course even 
 of twelve months, it may not command five thousand pounds. Estimating 
 sterlin"- as costing us three hundred, we can afford to take for our bonds 
 sold in En^-land, thirty-three and one third cents in the dollar; at five hun- 
 dred we can take twenty-five cents. We are assured however, that they 
 will brin"- more. Five per cent. Railroad bonds, endorsed by this State, 
 have sold in England at fifty cents in the dollar. At this rate six or seven 
 per cents of the Confederacy, endorsed by the State, should bring at least 
 seventy-five ; nay, I believe that with an active and efficient agent there to 
 dispose of these bonds, they would bring par ; especially if some means be 
 taken to pay the interest there promptly. Taking the current rates of ex- 
 chan<>-e fifty cents on the dollar, these will be worth one dollar and a half 
 here- seventy-five cents, two dollars and a quarter; and par, three 
 hundred. In other words, if we can get par for our bonds abroad, 
 we can make all our purchases there in our bonds as though they were gold 
 and silver. Those purchases abroad are very heavy ; what with navy ves- 
 sels arms, ammunition, clothing, medicines, and stores of various kinds, 
 several millions are demanded. And here let me say, incidentally, is a 
 
15 
 
 reason wliy this State should guarantee, if no other does. She alone can 
 from her quota furnish the Grovernmcnt an issue of bonds by which this 
 sterling exchange may be created. 
 
 The remedy thus suggested commends itself as practicable. It is easy 
 to try it. If we find that these bonds cannot thus be disposed of, nothing 
 has been lost. But we presume from what has been said, that this diffi- 
 culty will not meet us. The bonds will be sought after ; and the Confed- 
 erate Government having this issue of bonds in their hands, may say to the 
 capitalists of this country — '^ We know the value of these securities, and 
 will not sell them below fifty per cent, premium." If the demand for bids 
 be made, accompanied by the announcement that no bid will be considered 
 under that rate, the whole issue will be taken at it; more than this, so 
 eager will be the desire to obtain these securities, that higher bids will be 
 proposed ; and I would not be surprised if the bonds should realize two 
 dollars for one. 
 
 It is a scheme in which all the States will join us. There may be hesi- 
 tation for a brief period on the part of some, but it will only continue until 
 the advantages of the scheme are realized. By it they are committed no 
 farther than they have been already. Is not each one as truly bound in 
 equity for her proportion of the debt, as if she had by act assumed it? 
 Has it not been incurred by the General Agent on behalf of all ? and can 
 any fail to be dishonored unless the debt be paid, or at least unless that 
 State shall have arranged for her proportion ? 
 
 It is a remedy which will certainly reduce the prices of all articles for 
 sale. Those imported from abroad will cost less, because the parties im- 
 porting can send out these bonds for payment instead of running the risks 
 of the blockade with cotton. Any amount, too, can be sent ; for we will 
 not here have, as is the case with cotton, to complain of the want of vessels. 
 A single vessel could carry the whole issue in a corner of its cabin. Pur- 
 chases would thus be made with a single risk — that of the return cargo. 
 Enterprising men in all directions would increase the number of those 
 bringing such articles from abroad. Thus, not only could the goods be 
 brought more cheaply, but the supply would be nearer equal to the demand, 
 and articles imported would bring a value no greater than the risks run 
 would actually deserve. 
 
 At home, the redundant currency would be drawn in; depreciation would 
 be but slight; Confederate money would be nearly equal to gold and silver; 
 and almost all articles would sell then for what they would sell now in 
 specie. 
 
 If these things be true, this remedy will also enable the Government to 
 prosecute the war with greater vigor. Its supplies will be cheap ; its com- 
 mand of money will be unlimited ; everything necessary for success will be 
 
16 
 
 attainable ; and with contented and buoyant hearts, the people will sustain 
 it. 
 
 Before taking my seat, Mr. Speaker, I desire to call the attention of the 
 House to the resolutions on this subject, which are said by the papers to 
 have lately passed both Houses of the Legislature of Alabama. I will read 
 the resolutions, and then proceed to compare them with the Bill before us. 
 
 JOINT RESOLUTIONS IN RELATION TO THE WAR DEBT OF THE CONFED- 
 ERATE STATES. 
 
 Whereas, the Government of the Confederate States is involved in a war 
 for the independence of each of the States of the Confederacy, as well as 
 for its own existence ; and whereas, the destiny of each State of the Con- 
 federacy is indissolubly connected with that of the Confederate Grovernment; 
 and whereas, the Confederate Government cannot successfully prosecute the 
 war to a speedy and honorable peace, without ample means of credit ; Be it 
 therefore 
 
 ResoUed hy the Seriate and House of Representatives of the State of Ala- 
 bama, ill General Assemhij/ convened, That in the opinion of this General 
 Assembly, it is the duty of each State of the Confederacy, for the purpose of 
 sustaining the credit of the Confederate Government, to guarantee the debt 
 of that Government in proportion to its representation in the Congress of 
 that Government. 
 
 Resolved f wither, That the State of Alabama hereby proposes to our sis- 
 ter States of the Confederacy, to guarantee said debt on said basis — provi- 
 ded that each of said States shall accept the proposition and adopt suitable 
 legislation to carry it into effect, in which event these resolutions shall stand 
 as the guaranty of this State for the aforesaid proportion of the debt of 
 said Confederate Government. 
 
 Resolved further. That his Excellency the Governor be, and he is hereby, 
 requested to transmit a copy of these resolutions to the Governor of each 
 State of the Confederacy, and to the President of the Confederate States. 
 
 There are three points of difference between these resolutions and the 
 Bill originally presented to this House. 
 
 In the first place the Alabama resolutions cover the whole debt of the 
 Confederate States. The bill before us proposes simply a guarantee upon 
 bonds to a certain amount, and is intended to apply to a future issue, and 
 not at all to a past one. That the States are actually under obligations to 
 pay the whole debt or to see that it is paid, is, I think, unquestionable. And 
 when the proper tiiiiC shall come for such equitable action, I hope, sir, that 
 South Carolina will not be found wanting. But the present exigencies do 
 not require such action. We are called on simply to reduce our circulation, 
 
17 
 
 to appreciate our currency, and to secure to the Government funds abroad for 
 purchasing its supplies. It is on this account that I advocate this measure, 
 not for the purpose of making more secure those whom I regard as already 
 having security enough. What I am at, sir, is to relieve the Government : 
 and to do so not by making its past indebtedness secure to those who hold 
 it, but by enabling it at advantageous rates to take up its past indebtedness. 
 If this be done, even the persons holding the former issues of bonds will be 
 benefitted. At any rate we do them no injury — we deprive them of noth- 
 ing that they have already. So far from this, we are arranging for such a 
 relief of the currency as will appreciate all Confederate securities, and 
 make their bonds and stock worth nearly, if not fully as much as gold 
 and silver. For, if the redundant currency is taken up, then all bonds, 
 stocks and other securities other than Confederate must be relatively re- 
 duced, and the latter must advance. 
 
 But, sir, though this be not so, and though we be only making provision 
 for future emergencies, I trust the spirit of South Carolina will not be mis- 
 understood. She holds herself bound in equity for her full share of all ob- 
 ligations incurred by the present struggle. It matters not how they have 
 been misused nor to what extent. Her people will never be satisfied unless 
 every dollar is honestly and justly paid let it cost Tvhatit may. Let us have 
 to part with all our lands, with all our negroes — let us have to break up all 
 the associations of the past, and go forth as wanderers from the fair soil that 
 we love. Nay, more than this, if it is necessary, let us bear to be sold our- 
 selves, our wives, our children, into perpetual servitude, as were the Egypt- 
 ians to the Pharaoh whom Joseph knew. Welcome, thrice welcome the 
 servitude before we fail to pay every dollar that we justly owe. I under- 
 stand not the idea of repudiation — I would rather be a slave with honor, 
 than a freeman with such dishonor. 
 
 A second difierence between our Bill as originally presented and the Ala- 
 bama plan, is in the manner in which the ratio of obligation was to be in- 
 curred. Vie have changed ours to conform to theirs, which is the more 
 simple, and yet amounts to the same thing. The Bill as printed, proposed 
 that the guarantee should be given in the ratio of "direct taxes determined 
 by the return made under the Act of Congress, entitled ' An Act to au- 
 thorize the issue of Treasury Xotes, and to provide a War Tax for their 
 redemption, approved the nineteenth day of August, in the year of our 
 Lord eighteen hundred and sixty-one.' " The Bill, as amended before you, 
 in accordance with the Alabama plan, makes it in the ratio of '^ the repre- 
 sentation of said State in the House of Representatives of the Confederate 
 Congress." The ratio is about the same. According to the Constitution, 
 representation and direct taxation are both apportioned according to the 
 populntion of the States; and although direct taxation is according to the 
 
IS 
 
 decisions of the Supreme Court, a tax upon only land and negroes, and the 
 War Tax included other articles, yet, so equitably was that tax laid, that 
 the difference between a calculation based upon the War Tax and one on 
 representation, is very slight. Besides, as I have already said, this is much 
 more simple. It might take weeks to find out precisely the AVar Tax of 
 each State, especially if the numerous errors are to be corrected ; and then 
 it could not be satisfactorily ascertained. A moment's calculation on this 
 other plan fixes, without doubt, what part of these two hundred millions 
 South Carolina will have to pay. The representation in Congress from all 
 the States, is one hundred and eight members, of which South Carolina has 
 six, or one-eighteenth of the whole ; the proportion, therefore, of this guar- 
 antee, will be eleven millions one hundred and eleven thousand one hun- 
 dred and eleven dollars and eleven cents ($11,111,111 II). 
 
 A third difference between these plans is, that the resolutions of Alabama 
 put the guarantee based upon the condition that all the other States shall 
 unite with her in her action, while this Bill makes no such condition. The 
 condition, if insisted upon by all the States that may guarantee, would only 
 lead to failure. Missouri and Kentucky are represented in the Confederate 
 Congress ; yet, while their State Grovernments are in the condition they are, 
 it would be impossible for them to give a guarantee which would be of any 
 value. Louisiana is, to a very considerable extent, overrun by the enemy ; 
 perhaps it might be impossible there. Besides, let it be supposed that 
 only two or three States shall join at first; the beneficial results flowing 
 from the sale of their bonds could be used as a strong argument with the 
 others. And no State with any sentiments of honor, could, under such cir- 
 cumstances, refuse to do her just part. 
 
 But suppose no other State joins us. Suppose that Alabama has not 
 passed these resolutions. I trust she has not, sir. I have earnestly coveted 
 for South Carolina the lead in this movement. And I hope she may yet be 
 in the van. Let her go ahead in this matter alone, yes sir, alone, though no 
 other State follow. Two years have not elapsed since this State went forth 
 alone in an important enterprise. Guided by her statesmen, with assurances 
 that there was no danger, that no war could ensue, she waited not for the 
 company of others, but took the lead. The result of her action has been the 
 formation of this Confederacy; and for that action, whether deservedly or not 
 it becomes her citizens not to say, she has been awarded a meed of praise for 
 sagacious and long sighted statesmanship. The time has now come when 
 a leader is wanted and when the perils are seen. The power of the 
 enemy has been felt ; we are engaged in no child's play. The array of battle 
 is not merely the pomp and pageantry of war, but its sad reality. Shall she 
 shrink because the dangers are realized, because she sees that she has awak- 
 ened a fearful conflict with a powerful and wealthy adversary- No, sir, her 
 
19 
 
 sons have gone forth gladly to the combat. There has been no faltering 
 there, nor should there be any here. Let her fling proud defiance to the 
 foe. Let her show that she is ready to be crushed rather than conquered. 
 And let this body, by their action this day, show that she is ready not sim- 
 ply to pledge the lives of her citizens, but their fortunes and their sacred 
 honor. 
 
 A word more and I have done: The Bill contains two provisions to 
 which I ask a moment's attention. One is, that the bonds be sold to the 
 highest bidder. This is manifestly important to secure to us as valuable 
 a consideration for them as possible. The other is, that the State or its 
 citizens shall, at the same bid, have the preference over any other parties 
 upon the bonds of South Carolina. "When equal bids are made, some ad- 
 justment of the claims of the bidders must be made; either the amount 
 must be divided, or a choice be made between them. This proviso simply 
 says that in that event the State of South Carolina, or any one of its citi- 
 zens, shall have the preference. If any other State, or any of its citizens, 
 will give a hundredth part of a cent more on the dollar for our bonds than 
 we will, they shall be theirs. This is manifestly just and equitable. 
 
HoUinger Corp. 
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