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Europe (search for this): chapter 27
ks was comparatively nothing, in view of increased expenditures. The cotton which was goldfood-clothing-everything to the South, with the open ports of the North, would be more worthless than the wampum of the Indians, so soon as the threatened blockade might seal up her ports and exclude the European purchaser. But, on the contrary, if that cotton were bought on the faith of the Government-and planters would willingly have sold their last pound for Confederate bonds; if it were shipped to Europe at once and sold in her market, as circumstances might warrant, the Confederacy would, in effect, have a Treasury Department abroad, with a constantly accruing gold balance. Then it could have paid-without agencies and middlemen beyond number, who were a constant moth in the Treasury — in cash and at reduced prices, for all foreign supplies; those supplies could have been purchased promptly and honestly, and sent in before the blockade demanded a toll of one-half; but above all, the interes
New England (United States) (search for this): chapter 27
e. It was felt that the great prosperity of the North had, in a great measure, come from the South; that the looms of New England were fed with southern cotton; that the New York custom house was mainly busied over southern exports; that the soil od indeed appear desperate. The stoppage of a sure and heavy means of revenue, at the same moment that the spindles of New England stood still for want of food; the increased demand for fabrics and supplies, that had now to be imported; and the vasthern financier-does not go into the war as a unit. New York, the great money center, is entirely opposed to the war; New England is discontented at the stoppage of her factories and the loss imposed upon her people; and the great West, ever more b down the great river that has heretofore been the one lung that gave her the breath of life! Will the cute Yankee of New England submit to be ruined, and starved, and taxed in addition? Will the great commercial metropolis let the grass grow in h
Montgomery (Alabama, United States) (search for this): chapter 27
persistent adherence to a line of policy, each day proved more fatal. In a previous chapter, allusion has been made to the feeling of conscious superiority, pervading all classes of government and people at the inception of the struggle, at Montgomery. This extended to all classes of the people; and the universal belief in the great dogma of secession--Cotton is king! --was doubtless the foundation of that cardboard structure of Confederate finance, which the first rude shock toppled to pieces, and the inexorable breath of demand shriveled into nothingness. At Montgomery, the promises of ease in money matters were all that could have been asked. The people, everywhere, had come forward with frank, unanimous selflessness. They had faith in the cause-faith in the Government — faith in themselves; and they proved it by their works, giving with lavish hand from their substance. It was felt that the great prosperity of the North had, in a great measure, come from the South; that
Liverpool (United Kingdom) (search for this): chapter 27
morous leadership gaped at his still majesty- Awed by the face, and the fear, and the fame Of the dead king standing there; For his beard was so white and his eyes so cold, They left him alone with his crown of gold! Had the Government bought — as was urged upon it in the fall of 61-all the cotton in the country, at the then prices, and paid for it in Confederate bonds at six per cent., that cotton-according to calculations of the best cotton men of the South-would have produced in Liverpool, during the next three years, at rapidly-increasing prices, over one thousand millions of dollars in goldl Granting this erroneous, even by one-half, it follows that the immense specie balance thus held, would-after paying all accruing interest-have left such a surplus as to have kept the currency issue of Confederate States' notes merely nominal, and even then have held them at a par valuation. The soldier, who freely bared his breast to the shock of a hundred battles for his country,
United States (United States) (search for this): chapter 27
thus held, would-after paying all accruing interest-have left such a surplus as to have kept the currency issue of Confederate States' notes merely nominal, and even then have held them at a par valuation. The soldier, who freely bared his breas errors of its Treasury plunged the southern people. Accepting the delusive estimate that all the property of the United States, in 1861, represented but one-fifth more than that of the Confederate States; and that over three-fifths of the gold Confederate States; and that over three-fifths of the gold duties were from cotton and cotton fabrics, and products of the South alone, it was easy for the southern eye to see a future of trial, if not of ruin, for the North. Then, too, at the beginning of the war it was reasoned that the northern army of i and baker, soldier and seamstress, were equally interested in the currency. It became greenback or nothing, and the United States used the theory of self-preservation on which to build a substantial edifice of public credit. These were the har
C. G. Memminger (search for this): chapter 27
fingers were allowed to tangle and confuse them, till each in turn was snapped and rendered worse than worthless. Mr. C. G. Memminger, whom the President elevated to the Treasury Department, was untried and unknown out of his own State; but so greapointment, thoughtful men — who could look a little beyond the rose-colored clouds of the present-had pressed upon Secretary Memminger the necessity for establishing heavy foreign credits, to draw against in case of future need. The currency of thelong before the darkest days fell upon the South, his whole month's pay would not buy them one pound of bacon. Secretary Memminger would seem to have had some theory, or reasons of his own, for refusing to listen to the plain common sense in the southern Treasury was weak, vacillating and destructive, that of the northern was strong, bold and cautious. While Mr. Memminger-instead of utilizing those products which had heretofore been the life-blood of northern finance-allowed the precious
Lincoln (search for this): chapter 27
lines. Moreover, the vast-proposed blockade, by increasing to a point of anything like efficiency the vessels, armament, and personnel of the United States navy, would cost many millions. Thus, in short, the southern thinker could very readily persuade himself that the annual expenditures of the Federal Government must-even with the strictest economy and best management-run to unprecedented and undreamed — of sums. The demand for increased appropriations with the very first call of Mr. Lincoln for troops, justified this belief; the budget of 1862 to the United States Congress went far beyond all expectation; and the wild waste, extravagance, and robbery that swelled each succeeding estimate, were but more and more proof to the southern thinker, that he must be right. But he had made one grave miscalculation. Into the woof of delusion which he continued to weave, for enwrapping his own judgment, such reasoner omitted wholly to cross the warp of combined result. He neglecte
Montgomery (search for this): chapter 27
nd. For, had there been a large manufacturing population actively employed in the South, as there was in the North, the inflation of currency might have been temporarily concealed by its rapid passage from hand to hand. But with no such demand — with only the daily necessities of the household and of the person to relieve — the plethora of these promises to pay naturally resulted, first in sluggishness, then in a complete break-down of the whole system. Still, from the joyous days of Montgomery, and the triumphant ones after Manassas-through the doubtful pauses of the next winter and the dark days of New Orleans — on to the very Dies irae-there pervaded government and people a secure belief that the finances of the North would break down, and the war collapse for want of money! And so tenacious were people and rulers of this ingrained belief, that they cherished it, even while they saw the greenbacks of the Federal Government stand at 25 to 30 per cent. depreciation, while th<
Jewish (search for this): chapter 27
rity of that department. In this sense-and this sense alone-Cotton was king! But the hands that could have lifted him safely upon a throne and made every fiber a golden sinew of war, weakly wrested the scepter from his grasp, and hid him away from the sight and from the very memory of nations. It was as though the youngest of the nations aped the legendary traditions of the oldest. After the potent and vigorous King Cotton was killed by starvation, Confederate finance treated him as Jewish myth declares dead King Solomon was treated. In his million-acred temple, he stood-cold, white and useless-leaning upon his broken staff; while timorous leadership gaped at his still majesty- Awed by the face, and the fear, and the fame Of the dead king standing there; For his beard was so white and his eyes so cold, They left him alone with his crown of gold! Had the Government bought — as was urged upon it in the fall of 61-all the cotton in the country, at the then prices, and pa
King (search for this): chapter 27
Chapter 26: the failure in finance. Was cotton really King? how it might have been made so Government's policy comparison with northern finance why the South believed in her advantage how the North buoyed up her credit contractors and Bondholders feeling at the South on the money question supply and demand for paper distrust creeps in rapid depreciation. When the competent historian shall at last undertake a thoughtful work upon our great struggle, there can be little doubt that he will rank among the primary causes of the Confederacy's dissolution the grave errors of its financial system. These errors he will find not only in the theory and framework of that system-founded upon a fallacy, but also in the detailed workings of its daily management; and in persistent adherence to a line of policy, each day proved more fatal. In a previous chapter, allusion has been made to the feeling of conscious superiority, pervading all classes of government and people at
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