CORRESPONDENCE
BETWEEN TIIE SECRETARIES OF WAR AND THE TREA-
SURY, ON THE SUBJECT OF A DEFICIENCY
OF FUNDS.
Confederate States of America, )
War Department, >
Richmond, Va., Dec. 29, 1864. )
Hon. G. A. Trenholm, Secretary of the Treasury:
Sir :—I have examined the paper of Gen. E Kirby Smith, refer-
red by you the 23d in?t, in which the indebtedness of the Trans-
Mississippi Department is approximately stated for the year ending
30th of September, 1864, at $60,333,099
He includes under the title of amou its Jue, 20,277,465
And from estimub ■, 40,055.634
To tl is amount is to 1 e added the debts contracted since that date.
A portion of this sum has been remitted, but it is supposed that
the debt is quite n ' largo now, or larger than it was, the 30th of
September ult
The requisitions of the Quartermaster General unanswered now
amount to the sum of $128,360,584 87
Those of the Commissary Gcnoial, 34,002,684 65
The Ordnance service in arrears, 5,640 388 00
The Medical service ^ 3.090,333 00
The Engineer service u 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.
I 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
the many strong considerations that induce the-restriction of issue
as far as practicable, but I venture to suggest, that the currency
itself probably suffers more discredit from the failure to meet the
engagements of the government, than could result from inflation
by the issue necessary to redeem them.
T 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,
2
sale of clothing and equipments, among soldiers. It has prevented
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 suffering.
Most serious apprehension that unless the indebtedness of this
department now existing, can be provided for without delay, that
its operations cannot, with daily increasing obstructions, embarrass-
ments and antagonisms 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.
Very truly yours,
(Signed) JAMES A. SEDDON,
Seretary of War.
Treasury Department, )
Richmond Dec. 31, 1864 J
Hon. Jamem A. Seddon, Secretary of War:
Sir :—I have thejionor 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
cleatly impossible to withhold any part of the propor ion of notes
applicable to the payment of expenditures. After making the ne-
cesssary reservation for the exchange of the old issue as provided
by law, the largest amount that remained and could be 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-
quisitionsup to 1st 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 period, aro $358,245,000
The requisitions satisfied in tho same peiiod are, 320,721,116
The amount sent to the Trans-Mississippi Depart-
ment in notes, bonds and certificates, is 47,000,000
- 367,721,116
The amount paid in treasury notes from 1st April to 3lst Decern-
ber, is $397,260,209, from which it appears that not only has the
$200,000,000 authorized by the provisions of the Act of 17th of
February, been applied 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 months, was paid in that period, and thr-t the em-
barrassment 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 7,1 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
Hon. F. S. Lyon, Chairman of the Committee of Ways and Means,
pressing on his attention the 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 truly,
(Signed) G. A. TKENIIOLM,
Secretary of the Treasury.