<^1g 1 '^^ft Tdnu 4H-51 Duke University Libraries Correspondence Conf Pam #451 DTToaEbifia BETWEEN THE SECRETARIES OF WAR AND THE TREA- SURY, ON THE SUBJECT OF A DEFICIENCY OF FUNDS. CONKEDERATK StATKS OK AmkI^HU, ) War Dcparfnient , . Richmond, Va., Dec. 29, 18(;4. ) TTon. G. A. Trenhoi,m, Secretary of the Treasury : Sill : — I have examined the paper of Gen. E Kirby Smith, refer- red by you the 23d inst , in which the indebtedness of the Trans- Mississippi Department is approximately stated for the year endinjr 30th of September, 1864, at $60 333,099 He includes under the title of amounts due, 20,277,465 And from estimates, 40,055.634 To tl is amount is to be added the debts contracted since that date. A portion of this sum has been remitted, but it is supposed that the debt is quite as Iarg;o now, or larger than it was, the 30th of September ult. The requisition- of the Quartermaster General unanswered now amount to the sum of $128,360,584 87 Those of the Commissary General, 34,002,684 65 The Ordnance service in arrears, 5,640.388 00 The Medical service " 3.090,333 00 The Engineer service " exclusive of Tr-Miss , 5,000,000 00 The Nitre and Mining service, 5,600,000 00 The Department is constantly importuned for the payment of money due for necessary supplies which have already been furnish- ed, and is constantly advised that supplies cannot be obtained for the want of the requisite funds. Its whole service is in a fair way to perish from inanition. 1 am satisfied that the discredit of the government has arisen, in a measure, from the delay that has been made in the liquidation of these pressing, urgent and meritorious claims. I am aware of t'lo many strong considerations that induce the restriction of issue as far as practicable, but I venture to suggest, that the currency itself probal)iy suffers more discredit from the failure to meet the engagoiMcnts of the government, than could result from inflation by the isHuc neces.>^ary to redeem them. You can scarcely realize to what extent the inability or failure to meet the obligations of the department has been prolific of mis- chief. It has been the occasion or excuse for desertion, marauding, sale of clothiu^' and cquiptuLMits, anion<:,^ soldier.^. It has preveiftod the accumulation of supplies; it has affected the efficiency of trans- portation ; it has produced carelessness or indifference among con- tractors; officers are resentful, and soldiers reckless, discontented and suffer insr. ]kIost serious apprelicri«ion that unless tlie indebtedness of this department now existinfr, can be provided for without delay, that its operations cannot, with daily increasing obstructions, embarrass- ments and antagonit^ms among the people themselves, be carried on. I are constrained to invoke your earnest attention to the subject to urge the immediate application of all practicable means of re- lief. Verv truly yours, (Signed) JAMES A. SEDDON, Seretary of War. Treasdrt Department, } Richmond Dec. 31, 1864 \ lion. Jamb« a. Seddon, Secretary of War: Sir : — I have the honor to acknowledge the receipt of your let- ter of 30th instant, and to express my sincere regret at the embar- rassment arising from the inadequate supply of means at the com- mand of the War Department. That there should be so large an amount of requisitions unsatisfied does not proceed, as supposed, from the effort to restrict the issue of treasury notes. However desirable it was to repress the enlargement of the currency, it was clearly impossible t^ withhold any part of the proporion of notes applicable to the payment of expenditures. After making the no- cef'ssary reservation for the exchange of the old issue as provided by law, the largest amount that remained and could bo applied to the payment of expenditures was estimated at $200,000,000. Of this amount $100,000,000 had already been paid out on re- quisitions up to Ist July 1864, leaving only $100,000,000 available to meet the appropriations for the six months, from 1st July to 31st December, 1^64. The appropriations for the War Depart- ment for that i)eriod, are $358,245,000 The requisitions satisfied in the same period are, 320,721,116 The amount sent to the Trans-Mississippi Depart- ment in notes, bocds and certificates, is 47,000,000 367,721,116 The amount paid in treasury notes from 1st April to Slst Decern- i^*^t?\ s her. is $397,260,209, from which it appears that uot ouly has the $200,000,000 authorized hy the provisions of the Act of llth of February, been ap))]ied in the satisfaction of requisitions, but also a further sum of $197,260,209, derived from the sale of bonds, temporary loans and other sources. Jt will be perceived, too, that a sum equal to the appropriations for the last six mouths, was paid in that period, and thj t the em- barrassmert really arises from the pre existing indebtedness. The data for determining the arrears of debt in July last, were quite imperfect. It was estimated, by my predecessor, at $75,000,000, on the 1st of April, (Report of May 2, page 4.) In my report of November 7, I estimated it to have been $114,000,000, on the 1st of July last, and recommended that provision should be made for this amount. On the 15th of December, I addressed a letter to lion. Y. S Lyon, Chairman of the Committee of Ways and Means, pressing on his attention tlie necessity of prompt action in making provision to meet the estimates for the approaching six months and the arrear of debt. Among the resources of the future, I rely upon obtaining about $40,000,000 from the tax on sales for the last quarter of the year, and the income tax, which are payable on the 1st of January, 1865, and consequently receivable in new issues. I relied upon this source to defray the arrear of pay due the army. The accompanying table exhibits the appropriations for the sev- eral Bureaus of the War Department, and the amount of requisi- tions satisfied for them respectively. Yours, most trulv, (Signed) G. A. TKENflOLM, Secretary of the Treasury. Digitized by tine Internet Arciiive in 2010 with funding from Duke University Libraries Iittp://www.archive.org/details/correspondencebe01conf pemnAlife® pH8.5