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the earth, and to invoke the continuance of His favor. 15th of November as a fast day. The proc. Knowing that none but a just and righteous cause can lamation was as follows: gain the Divine favor, we would implore the Lord of Hosts to guide and direct our policy in the paths of

Whereas, It hath pleased Almighty God, the Sover. right, duty, justice, and mercy, to unite our hearts eign Disposer of events, to protect and defend the Conand our efforts for the defence of our dearest rights; federate States bitherto, in their conflict with their to strengthen our weakness; crown our arms with suc

enemies, and to be unto them a shield; and, whereas, cess, and enable us to secure a speedy, just, and hon- with grateful thanks we recognize His hand and acorable peace. To these ends, and in conformity with the request victory; and in humble

dependence upon His Almighty

knowledge that not unto us, but unto Him belongeth the of Congress, I invite the people of the Confederate strength, and trusting in the justness of our cause, we by such religious services as may be suitable for the of our enemies, and put them to confusion and shame; occasion, and I recommend Thursday, the 13th day of

Now, therefore, I, Jefferson Davis, President of the June next, for that purpose, and that we may all on

Confederate States, in view of the impending conflict, that day, with one accord, join in humble and reverential approach to Him in whose hands we are, invoking

do hereby set apart Friday, the 15th day of November,

as a day of fasting, humiliation, and prayer; and I do Him to inspire us with a proper spirit and temper of heart and mind to bear our evils, to bless us with His hereby invite the reverend clergy and the people of favor and protection, and to bestow His gracious bene- usual places of public worship, and to implore the

these Confederate States to repair on that day to their dictions upon our Government and country.

blessing of Almighty God upon our arms; that He On the 12th of August, President Lincoln may give us victory over our enemies, preserve our issued the following proclamation, appointing homes and altars from pollution, and secure to us the

restoration of peace and prosperity. the last Thursday in September ensuing as a

Given under my hand and the seal of the Confed day of fasting :

erate States, at Richmond, this 31st day of October, A PROCLAMATION.

in the year of our Lord one thousand eight hundred Whereas, A joint Committee of both Houses of Con- and sixty-one.

JEFFERSON DAVIS. gress has waited on the President of the United States, and requested him to “recommend a day of public

FINANCES OF THE UNITED STATES. humiliation, prayer, and fasting, to be observed by the The finances of the Federal Government for the people of the United States with religious solemnities,, year 1861 underwent a very important and and the offering of fervent supplications to Almighty radical change, both in respect to the policy of God for the safety and welfare of these States, His blessings on their arms, and a speedy restoration of raising revenue. The Constitution of the Fed

å national debt, and in relation to the mode of peace;

And whereas, It is fit and becoming in all people, eral Government provides for raising revenue at all times, to acknowledge and rerere the Supreme as well by direct taxes as by indirect duties Government of God; to bow in humble submission to

upon consumable articles. It has been the his chastisements; to confess and deplore their sips and transgressions, in the full conviction that the fear case, however, that the former have been an. of the Lord is the beginning of wisdom, and to pray, popular, while the latter have not only had the with all fervency and contrition, for the pardon of their merit of being easily collected, but, while they past offences, and for a blessing upon their present have sufficed to meet all the ordinary wants of and prospective action ; And whereas, When our own beloved country, once, ceed them, as in 1836, when a surplus revenue

the Government, and sometimes greatly to exby the blessing of God, united, prosperous, and happy, is now afflicted with faction and civil war, it is pecu- of $28,000,000 was distributed among the liarly fit for ns to recognize the hand of God in this States, they have served to give incidental proterrible visitation, and in sorrowful remembrance of tection to the nascent manufactures of the our own faults and crimes as a nation, and as individ. Union. The

revenue derived from the sales of uals, to humble ourselves before Him, and to pray for His mercy- to pray that we may be spared further land was also a resource which did not bear punishment, though most justly deserved; that our directly upon the industry of the people. In arms may be blessed and made effectual for the re- times of unforeseen difficulty, like commercial the wide extent of our country, and that the inesti revulsion or war, the Government has always mable boon of civil and religious liberty, earned under been able to borrow sufficient to meet the exiHis guidance and blessing by the labors and sufferings gency, and returning prosperity has always of our fathers, may be restored in all its original ex. afforded the means of paying off the debt.

Therefore, I, Abraham Lincoln, President of the During the war of 1812 an attempt at direct United States, 'do appoint the last Thursday in Sep. taxation was made without very satisfactory tember next as day of humiliation, prayer, and fast results, and the taxes were soon repealed. The ing for all the people of the nation. And I do earnest- aggregate resources and payments of the Fedly recommend to all the people, and especially to all eral Government, from its origin down to the tions, and to all beads of families, to observe and keep close of the tiscal year 1861, were as follows: that day, according to their several creeds and modes Customs revenue..........

$1,575,152,579.92 of worship, in all humility, and with all religious so.

Land ..


Taxes and other receipts .... lemnity, to the end that the united prayer of the Na


ordinary tion may ascend to the Throne of Grace, and bring

March 4, 1789, to July 1,1861,

$1,846,275,863.48 down plentiful blessings upon our country.

Total ordinary expenditure, In testimony whereof, I have hereunto set my hand, March 4, 1789, to July 1,1861,

1,453,790,786.00 and caused the seal of the United States to be [L. S.] affixed, this 12th day of August, A. D. 1861, and


Total amount received for of the Independence of the United States of

loans 1789 to 1861 ... 9462,935,644.64 America the eighty-sixth, ABRAHAM LINCOLN.

Total amount paid for loans On the 31st of October President Davis

181,886,375.00 issued another proclamation, appointing the Excess payments for loans..




Total excess revenne.....

1789 to 1861...
.at 99
at 10
, at 10+
at 1 11

Thus by far the largest portion of all the ex- $10,000...

.at o per cent

30,000. penses of the Government during its existence,


.at 4 including war expenses, purchase of territories, 140,000. indemnities to Mexico, Texas, &c., was dis


721,000. charged by the customs revenues. If we deduct 265,000. from the debt $90,867,828, that existed July

648,000. 1,267,000.

at 10% 1, 1861, the amount of $28,101,644 deposited

1,947,000.. among the States under the law of 1836 and never returned, and also the debt made neces

$5,000,000 Average rate, 104 per cent. sary by the troubles in the latter part of the The condition of the finances now seriously fiscal year 1861, there will remain very little, engaged the attention of Congress. The ap thus showing that all the expenses of the Fed- parent discredit of the Government made some eral Government from its origin have been paid vigorous means necessary to replenish the by customs revenues, leaving in the hands of treasury. The necessity of revising the tariff, the Government an immense amount of proper- so that it would produce a larger revenue, was ty acquired in land, and still at its disposal, also obvious, and a bill to that effect was introduced. vast military resources and public buildings, in Meantime a bill was passed, February 8, author the whole Union.

izing a loan of $25,000,000, to bear 6 per cent. The magnitude of the civil war caused, interest, to run not less than ten nor more than however, a complete change in the finances, in- twenty years; the stock to be sold to the highvolving as it did an amount of expenditure est bidder. The Secretary offered $8,000,000 within the year, never before undertaken by of this stock. The bids were opened Feb. 27, any nation. The capital of the country seemed, and the whole amount offered was $14,355,000, however, equal to the exigency, although the ranging from 75 to 96 per cent. All bids below public mind was at first somewhat startled by 90 were refused, and the stock, as awarded, events. In June, 1860, Congress had author- ranged at 901 to 96 per cent. ized a loan of $20,000,000; of this, $10,000,000 The tariff bill reported by the Committee of was offered in the month of October in a 5 per Ways and Means under such circumstances bad cent, stock, which was taken at a small pre- been passed with little debate. It restored the mium. Inasmuch, however, as the Presidential highest protective character to the tariff, reelection of Nov. 6, 1860, intervened before the placed ad valorem duties with complicated instalments were paid up, the resulting inquie- specific duties, and gave but 30 days' notice tude caused some of the bidders to decline the 'before going into operation. It was passed stock, and $7,022,000 only was issued. The March 2, to go into operation April 1, and it same circumstances caused a great decline in authorized a loan of $10,000,000.' The immethe customs revenues, and the means of the diate effect of the tariff was to produce larger Government in December were greatly cramp- entries at the custom-house, in order to avoid ed. The Secretary of the Treasury, Howell the new tax. The consequently improved Cobb, resigned December 10. On the 14th of customs revenue supported the Government that month Congress passed a law, approved credit, and this, with renewed hopes of conon the 17th, permitting the issue of $10,000,- tinued peace, caused the Government stock to 000 treasury notes, payable in a year, at the advance in the market. The new Secretary of lowest rates of interest offered. The Secretary the Treasury, S. P. Chase, offered $8,000,000 offered $5,000,000 of the notes, bids to be more of the stock, for which bids were opened opened Dec. 28. When the time expired, how. April 2. It was found that for $3,000,000, 94 ever, but $500,000 had been bid, at 12 per cent. to 100 per cent. was offered, and 931, or 31 per There were some offers at 24 per ct., and some as cent. higher than the bids in February, for an high as 36 per cent. The Secretary rejected all amount equal to the balance of the loan. The over 12 per cent. It was highly necessary that department thought proper to reject all bids the money should be had to meet the interest below 94, consequently only that part of the on the Federal stocks due Jan. 1, and a num- loan was placed, $3,099,000, average 94.01, ber of banks and bankers offered for $1,500,000 netting $2,913,395. This decision was unforat 12 per cent., on condition that the money tunately made at the moment when the exshould be applied to the interest. On the 31st pedition was about to sail from New York to the remainder was taken by the same associa- reēnforce Fort Sumter, a fact not known to tion at the same rate. It may be here stated the public. When it became known, mach that the State of New York' had offered for uneasiness was created, and in the midst of $1,200,000 in a 7 per cent. stock, 34 years to it the department offered $5,000,000 of the run, and it was taken at 101.12 tol02.71, average balance of the loan in 6 per cent. treasury 1014, on the 26th December.

notes, payable in two years, and convertible General Dix was appointed Secretary of the into twenty-years stock. These bids were Treasury in January, and he offered the re- opened on the 11th April, when only $1,000,000 maining $5,000,000 of the loan authorized. had been offered. Parties interested then pro

The bids were opened on the 19th, and the cured a delay, in order that further effort in Rotes awarded as follows:

favor of the stock might be made. The price of money at call was then in the market 4 per substitute, and which are also restricted to cento, and could with difficulty be placed at par. that rate, and the United States 6 per cent. “And the committee invite all capitalists and 20-years stock was selling at 83. Finally the moneyed institutions to avail of these opportubids amounted to $2,500,000, and the leading uities for investment. banks and bankers with great exertion made "Committee.--Pelatiah Perit, Stewart Brown, up the remainder, completing the $5,000,000 William H. Aspinwall, J. J. Astor, jr., August 6 per cent. treasury notes at par. These being Belmont, James Gallatin, A. T. Stewart, J. M. receivable for customs-daties, while money in Morrison, Moses Taylor, George S. Coe, F. A. the open market was only 4 per cent., large Palmer, John Q. Jones, D. R. Martin, Jacob importers who had funds lying idle to meet Campbell, jr.". duties, could invest them in these notes, where When the time expired for the proposals, the they would earn 6 per cent., and be available bids were not completed, and Mr. Chase postfor the duties.

poned the opening of the bids until May 25. The department was now comparatively easy The intermediate time was employed by infor the moment, but the immense expenses fluential parties in endeavoring to make up the rapidly absorbed means. Congress was not to loan. Finally, on opening the bids, the offers meet until July 4, and the Government credit, for the $9,000,000 reached 84 to 93 for the as apparent from the price of its 6 per cent stocks, of which $6,396,000 were awarded at stock being 84, when money was only worth 85 to 93, a large portion to the New York 4 per cent., for the same description for which banks, and $2,241,000 in 6 per cent. treasury the Government a few years before had itself notes at par. paid 22 per cent. premium, was shaken. The The proposals for the $14,000,000 were to resources of the Ireasury now consisted of be opened on the 30th of May. 'That, how. $14,000,000, that had been authorized by the ever, was only a formality, since no one would act of June, 1860, but which could not be sold bid par for stocks that he could buy in the under par for a 6 per cent. stock. There was market at 84. The compliance with the law, the balance, $9,000,000, of the $25,000,000 however, enabled the Secretary to issue the anthorized by the law of February, 1861, which amount in treasury notes. Some of these might be sold to the best advantage, and there were taken, and the remainder was paid out was also the $10,000,000, authorized by the gradually to creditors. tariff law of March 2, 1861 ; but this could not While the Federal Government was thus be used until after June 30, or the close of the struggling for money, the various States were fiscal year 1861. The difficulty was to raise also in the market with war loans. New York means upon these stocks. The banks and City procured $1,000,000 at the close of April; capitalists began to feel the necessity of aiding Pennsylvania sold $3,000,000 of a 5 per cent. the Government and sastaining its credit as loan, Ohio $1,000,000, Indiana offered $1,500,a matter of self-defence. Under these circum- 000 in a 6 per cent. stock, Illinois $1,000,000, stances the New York Chamber of Commerce, Michigan, $500,000 at 7 per cent., Iowa $400with various sub-committees, and the New York 000 at 7 per cent., Connecticut $2,000,000 at and Boston banks, took the matter in hand, and 6 per cent. The State of New York obtained after much difficulty issued the following card, $700,000 7 per cent. loan at 101.38 to 101.65, May 16:

Maine $1,000,000 in a 5 per cent. stock at á “The undersigned, a committee of the Cham- premium. ber of Commerce, having, by a sub-committee, Towards the close of June the Government recently visited Washington to confer with the wants were again attracting attention, and the Secretary of the Treasury on the subject of banking interest was urging the adoption of the loans, which he is authorized by law to the loan or stock system, rather than the issue, they beg to call the attention of the treasury note plan which the Secretary seemed public to the particulars of these loans, as to favor. There were no measures adopted, follows:

however, until the meeting of Congress. The “1. A loan of about nine million dollars, which Secretary then required $5,000,000 to carry will be issued in bonds or stock having twenty him along until Congress should devise means. years to run, and at six per cent. interest. For The two-years treasury notes that had been this proposals are invited, and it will be award. issued at par were at 21 per cent. discount, and ed to the highest bidder, at Washington, on were therefore not directly available. It was Tuesday, the 21st inst.

finally decided to borrow of the banks the “2. A loan of fourteen million dollars, ($14,, required amount at 60 days on pledge of the 000,000,) which is limited by the law of June, 6 per cent. notes as collateral security. The 1860, at par. This loan is now advertised to amount of $5,000,000 was promptly made up on be awarded on the 30th instant, but from its these terms. limitation it will probably have to be issued in At the meeting of Congress, July 4, the treasury notes having two years to run, and Secretary of the Treasury, in his report, set convertible into twenty-years stock or bonds, as forth the financial difficulties that beset the above, at the pleasure of the holder; which Government, and stated the probable expendnotes the Secretary is by law authorized to iture for the year at $318,519,581.97.


Civil list.......

$831,496.90 realized, it will be necessary, in order to sustain Interior department.. War

180,296,397.10 fully the public credit, to provide for raising Navy

30,609, 620.29 the sum of $20,000,000 for the current year, at Public debt


least, by direct taxes, or from internal duties Total extra..

- $224,808,801.77 or excises, or from both." Ordinary expenses.

93,710,780.30 With these provisions the Secretary had now Total for 1862.

.$318,519,582.07 to come into the market to raise the money, This was the sum Congress was called upon and his prospect was not promising. The to meet. According to the Secretary $80,000,- law limited the sale of the stocks to a price 000 might be raised by import duties and tax. equal to par for a 7 per cent. stock, which was ation, and $240,000,000 by loans. Taxes on 89.32, and the 6 per cent. had been at 837 in coffee and tea were proposed, and higher rates June, and were at the passage of this act, Ang. upon most other articles of consumption. Oon- 5, 864: The disaster at Bull Run had placed gress immediately took the matter into con- the whole country in peril. Washington was sideration, and, Jóly 17, passed a law authoriz. in immediate danger of capture; Baltimore was ing a loan of $250,000,000 in form as follows:

of doubtful loyalty, and several large States Stock, ? per cent., rodeemable after 20 years....$250,000,000 now held by the armies, were then ready to

cast their influence into the preponderating equal to par for 7 per cent..

100,000,000 scale. Congress had adjourned after binding Stock, 7 per cent., redeemable after 20 years, payable in Europe .....

the Secretary of the Treasury by law, to Treasury notes, 70 per cent., redeemable at 3

obtain money at a minimum rate, and there years, convertible into 6 per cent. stock... Treasury notes, 365100, redeemable at 1 year,

was no resort left but the issue of paper convertible into 3-years bonds..

money, based upon the faith and future reDemand notes, issued as money, not less than $5, nor more than.....


sources of a country discouraged, distracted, Treasury notes, 6 per cent., payable within 12

and whose future was shrouded in gloom. months

20,000,000 It was under these circumstances that the The whole amount of stock, treasury notes, Secretary visited New York, and after an and demand notes was not to exceed $250,000,- interview with the bank officers, it was 000, except the 6 per cent. notes left, which were agreed that the banks of Boston, Philadelto be used as collaterals for temporary loans, and phia, and New York should take the 71% were meant to legalize what the Secretary had notes of $50 and upwards, three years to run, already negotiated in that shape. The per- in the proportions as follows: mission to issue $100,000,000 in foreign stock was in the hope that a portion of it might be

Capital Subscribed.

Balance in

the Publie, 'Benk,Dec.31. placed abroad. The act, as it passed the House, pledged the customs revenues for the payment New York, $69,997,000 $102,056,895 $35,000,000 $67,056,88%

88,281,700 29, 159,095 10.000.000 19.159.056 of the interest, but the clause was subsequent. Philadela. 11,811,485 14,079,548 3,000,000 2,5T9.149 ly stricken out. The law of July 17 limited the rate at which the 7 per cent. stock might

Total... / $119,950,185 $145,795,478 850,000,000 $95.725,4TS be sold, to par; but a supplemental act of Aug. The Secretary to draw the money no faster 8 allowed the sale of a 6 per cent. at a rate than he required it for his weekly expenses. equal to par for a 7 per cent. stock.

Hence as the notes all drew interest from the Having given this authority to borrow, Con- date they were taken, the banks had the use of gress proceeded to pass such laws as might im- the money a part of the time. prove the revenues. A direct tax, an income The amounts taken were as follows: tax, and higher duties, were imposed. The di- Aug. 19. Notes to draw interest from date...... $50,000.00 rect tax act provided for the levy of $20,000,000 Oct. 1.

..s.. 50,000,000 ppon all the States, which would give from the Doc. 1. Stock

50,000,000 loyal States $12,000,000, from which the ex- This was a supply of $150,000,000 for three penses of collection were to be deducted. The months, in addition to which the Secretary had income tax provided for the payment of 3 per the right to issue $50,000,000 of paper money; cent. on incomes over $800, to be levied in but to the exercise of this power the banks April, 1862, on the incomes of 1861. The in- strongly objected, since the notes being made crease of duties embraced taxes on cocoa, coffee, redeemable in coin in New York, and paid out tea, sugar, which it was supposed would yield in the interim, might cause a drain of specie $22,500,000. The Secretary remarked that the from New York, which the department would total revenue from imports during the present be compelled to meet under the law, by drawing year may be $57,000,000, to which may be added the coin from the banks, thus jeopardizing their the sum of $3,000,000, to be derived from the solvency. The Secretary, therefore, used them sales of the public lands and miscellaneous very sparingly. It was also agreed that the sources, making the total revenue for the year Secretary should make an appeal to the pube $60,000,000. While, therefore, there is every lic for the sale of the 776 per cent, notes, and reason to believe that under a modified tariff, that he should appoint agents for the sale when the prosperity of the country shall be in all prominent places; but that all sales so fully restored, an annual revenue of not less made should be supplied from those taken by than $80,000,000, and probably more, may be the banks, until the amount should be exhaust

Sold to


ed. The Secretary made an address to the While thus successful in borrowing, the people in accordance with this understanding, revenues had been far less than the estimates, and some 500 agents were appointed. The and the expenses far greater--the former, by appeal was, however, without the anticipated reason of the stagnation of trade, and the latter success. The public responded but to a comin consequence of the great increase in the paratively small extent. The Secretary continued army. The Secretary, therefore, revised his to draw upon the credit in his favor opened by estimates for the year as seen in the following the banks, which thus found their means passing table : from them, without much prospect of getting The Secretary advised a resort to taxation as them back, since the notes they had taken a means of raising $50,000,000 in excess of the would no longer sell at par in the open market. customs for the service of the year 1863, in Hence, as the 1st December approached, they which year he estimated the expenses at $475,decided to take $50,000,000 in the 6 per cent. 20- 334,245. This result was very unsatisfactory, years stock at a rate equal to par for the 7 per ct. and the public credit did not revive on the exThis was 89.322, or in amount $44,661,231 91 position, and the year closed with the suspension for the fifty millions, to which was added the of the banks, amid gloomy prospects. interest from July, making $45,795,478.

On emitting the demand notes, the Secretary Congress was now again in session. The re- of the Treasury addressed a circular to the port of the Secretary, that had been looked for various Assistant Treasurers, to the following with the greatest interest, was at last made, effect : and it contained the following statement of

Under the acts of July 19th and August 5th last, the money that had been raised since the ad- Treasury notes of the denomination of 85, $10, and journment of Congress in August :

820, have been, and will continue

to be issued, redeemThere were paid to creditors, or exchanged

able in coin on demand at the offices of the Assistant for coin at par, at different dates in July

Treasurer at Boston, New York, Philadelphia, St, and Angust, six per cent, two-years notes,

Louis, and at the Depository of Cincinnati These to the amount of .....

$14,019,034.68 notes are intended to furnish a current medium of pay. There was borrowed, at par, in the same

ment, exchange, and remittance, being at all times con. monthe, upon sixty-days six per cent. notes, the sum of

vertible into coin at the option of the holder, at the

12,877,750.00 There was borrowed, at par, on the 19th of

place where made payable, and everywhere receivable August, upon three-years 7.30 bonds, is

for public dues. They must be always equivalent to sued for the most part to subscribers to

gold, and often and for many purposes more convenient the National Loan

50,000,000.00 and valuable. There was borrowed, on the 1st of October,

A sufficient amount of coin to redeem these notes upon like securities,

50,000,000.00 There was borrowed, at par for seven per

promptly on demand will be kept with the depositaries, cent., on the 10th of November, upon

by whom they are respectively made payable. And all twenty-years six per cent. bonds, reduced

depositors and collecting officers will receive them, to the equivalent of sevens, including in.

enter them on their books, and pay them to public terest ...,

45,795,478.48 creditors as money. Large amounts of the notes of There have beon issued, and were in circula

small denominations are rapidly being issued and distion and on doposit with the Treasurer,

tributed. on the 30th of November, of United States notes, payable on demand

24,550,325.00 General Scott issued the following order: Making an aggregate, realized from loans in

HEAD-QUARTERS OF THE ARMY, Farious forms, of. $197,242,588.14

WASHINGTON, Sept. 3, 1861.

The General-in-Chief is happy to announce that the It will be observed that in the whole of this Treasury Department, to meet future payments to the borrowing very little was really subscribed by troops, is about to supply, besides coin, as heretofore, capitalists for investment. About $38,000,000 Treasury notes in fives, tens, and twenties—as good of the 3-years notes only had been taken, most

as gold at all banks and Government offices through

out the United States, and most convenient for transly by small investors, and they were already mission by mail from the officers and men to their Again offering them in the market to an extent families at home. Good husbands, fathers, sons, and which reduced the price to 96 for those that brothers, serving under the Stars and Stripes, will were endorsed, and 98 for clean notes. The thus soon have the ready and safe means of relieving banks had invested the idle capital accumulated reached with coin. In making up such packages,

an immense amount of suffering, which could not be in their vaults, belonging to depositors, and the every officer may be relied upon, no doubt, for such securities were still hanging over the market assistance as may be needed by his men. in prospective competition with the future loans By command of Lieutenant-General SCOTT. of the Government. The department, never

E. D. TOWNSEND, Assistant Adjutant-General. theless, had obtained the money.

Of these, the Secretary had issued about


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