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[697] amounted during that year to nearly fifty millions, he had nominally at his disposal the sum of two hundred and eighty millions. Thus provided, he only proposed during the first eight months of that year some insignificant financial measures to Congress, such as, on the 12th of April, the creation of five millions of government bonds at eight per cent., which were never issued,1 and five millions of small notes of the denominations of one and two dollars, on the 17th of the same month. Some of the resources placed at the disposal of the Confederate treasury, however, were not promptly realized, and more difficulty was experienced in Richmond in consolidating the public debt even than at Washington. In order to facilitate this operation, Mr. Memminger, Secretary of the Treasury, followed the example of Mr. Chase, and on the 24th of December, 1861, he was authorized to receive Confederate notes on deposit in exchange for certificates bearing interest. This interest, which at the North was at the rate of four and five per cent., was six per cent. in the South. But despite his efforts, the Secretary only succeeded in disposing of a portion of the loan scrip he had been authorized to issue. On the 1st of August, 1862, the eight per cent. bonds voted for in February, 1861, had alone been subscribed for in full, amounting to 15,000,000 dollars; those of August only realized 22,613,346 dollars out of 100,000,000; the treasury notes at 7.30 per cent. of April, 1861, had realized 22,799,900 dollars, and the certificates of deposit authorized by the law of December 24th, 37,515,200 dollars, making in all 97,928,446 dollars. Consequently, notwithstanding the law which limited the issue to 105,000,000, the treasury had put in circulation legal tender notes to the amount of 187,977,560 dollars.

It was in the midst of these difficulties that, on the 18th of August, Mr. Davis addressed his message to Congress stating the necessity of finding new resources in the credit of the Confederacy. Asserting that the public, represented by the numerous contractors who were creditors of the government, preferred being paid in treasury notes rather than in interest-bearing bonds, he dismissed the project of a new loan, asking instead for authority

1 $3,612,300 of them were issued, according to Treasury Report of Jan. 1, 1864.—Ed.

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