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No. 39.

Intercourse with Insurrectionary
States

July 2, 1864

A BILL further to regulate commercial intercourse with the insurrectionary States was introduced in the Senate, April 14, 1864, by Zachariah Chandler of Michigan, by unanimous consent, and referred to the Committee on Commerce. The bill was reported with amendments May 28, and passed the Senate, June 28, by a vote of 27 to 13. The House passed the bill with further amendments July 2, the concurrence of the Senate being given the same day. REFERENCES. Text in U.S. Statutes at Large, XIII, 375–378. For the proceedings see the House and Senate Journals, 38th Cong., Ist Sess., and the Cong. Globe. The text of the bill as passed by the Senate is in the Globe for June 28.

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An Act in addition to the several Acts concerning Commercial Intercourse between loyal and insurrectionary States, and to provide for the Collection of captured and abandoned Property, and the Prevention of Frauds in States declared in Insurrection.

Be it enacted . . That sales of captured and abandoned property under the act approved March twelve, eighteen hundred and sixty-three, may be made at such places, in states declared in insurrection, as may be designated by the Secretary of the Treasury, as well as at other places now authorized by said act.

SEC. 2. And be it further enacted, That, in addition to the captured and abandoned property to be received, collected, and disposed of, as provided in said act, the said agents shall take charge of and lease, for periods not exceeding twelve months, the abandoned lands, houses, and tenements within the districts therein named, and shall also provide, in such leases or otherwise, for the employment and general welfare of all persons within the lines of national military occupation within said insurrectionary states formerly held as slaves, who are or shall become free. Property, real or personal, shall be regarded as abandoned when the lawful owner thereof shall be voluntarily

absent therefrom, and engaged, either in arms or otherwise, in aiding or encouraging the rebellion.

SEC. 3. [Moneys from leases and sales to be paid into the treasury. Act of March 12, 1863, section 1, extended to include property mentioned in acts of July 13, 1861, and July 17, 1862.]

SEC. 4. And be it further enacted, That the prohibitions and provisions of the act approved July thirteen, eighteen hundred and sixty-one, and of the acts amendatory or supplementary thereto, shall apply to all commercial intercourse by and between persons residing or being within districts within the present or future lines of national military occupation in the states or parts of states declared in insurrection, whether with each other or with persons residing or being within districts declared in insurrection and not within those lines; and that all persons within the United States, not native or naturalized citizens thereof, shall be subject to the same prohibitions, in all commercial intercourse with inhabitants of states or parts of states declared in insurrection, as citizens of loyal states are subject to under the said act or acts.

SEC. 5. And be it further enacted, That whenever any part of a loyal state shall be under the control of insurgents, or shall be in dangerous proximity to places under their control, all commercial intercourse therein and therewith shall be subject to the same prohibitions and conditions as are created by the said acts, as to such intercourse between loyal and insurrectionary states, for such time and to such extent as shall from time to time become necessary to protect the public interests, and be directed by the Secretary of the Treasury, with the approval of the President.

SEC. 6. [Mode of distribution of fines, forfeitures, &c. Repeal of parts of acts of May 20, 1862, section 5, and March 12, 1863, section 4.]

SEC. 7. And be it further enacted, That no property seized or taken upon any of the inland waters of the United States by the naval forces thereof, shall be regarded as maritime prize; but all property so seized or taken shall be promptly delivered to

the proper officers of the courts, or as provided in this act and in the said act approved March twelve, eighteen hundred and sixty-three.

SEC. 8. And be it further enacted, That it shall be lawful for the Secretary of the Treasury, with the approval of the President, to authorize agents to purchase for the United States any products of states declared in insurrection, at such places therein as shall be designated by him, at such prices as shall be agreed on with the seller, not exceeding the market value thereof at the place of delivery, nor exceeding three fourths of the marketvalue thereof in the city of New York at the latest quotations known to the agent purchasing: Provided, That no part of the purchase-money for any products so purchased shall be paid, or agreed to be paid, out of any other fund than that arising from property sold as captured or abandoned, or purchased and sold under the provisions of this act. All property so purchased shall be forwarded for sale at such place or places as shall be designated by the Secretary of the Treasury, and the moneys arising therefrom, after payment of the purchase-money and the other expenses connected therewith, shall be paid into the treasury of the United States.

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SEC. 9. And be it further enacted, That so much of section five of the act of thirteenth of July, eighteen hundred and sixty-one, aforesaid, as authorizes the President, in his discretion, to license or permit commercial relations in any state or section the inhabitants of which are declared in a state of insurrection, is hereby repealed, except so far as may be necessary to authorize supplying the necessities of loyal persons residing in insurrectionary states, within the lines of actual occupation by the military forces of the United States, as indicated by published order of the commanding general of the department or district so occupied; and, also, except so far as may be necessary to authorize persons residing within such lines to bring or send to market in the loyal states any products which they shall have produced with their own labor or the labor of freedmen, or others employed and paid by them, pursuant to rules relating thereto, which may be

established under proper authority. And no goods, wares, or merchandise shall be taken into a state declared in insurrection, or transported therein, except to and from such places and to such monthly amounts as shall have been previously agreed upon in writing by the commanding general of the department in which such places are situated and an officer designated by the Secretary of the Treasury for that purpose.

SEC. 10. And be it further enacted, That all officers and privates of the regular and volunteer forces of the United States, and all officers, sailors, and marines in the naval service, are hereby prohibited from buying or selling, trading, or in any way dealing in the kind or description of property mentioned in this act, and the act to which this is in addition, whereby to receive or expect any profit, benefit, or advantage to himself, or any other person, directly or indirectly connected with him; and it shall be the duty of such officer, private, sailor, or marine, when such property shall come into his possession or custody, or within his control, to give notice thereof to some agent, appointed by virtue of this act, and to turn the same over to such agent without delay: . . . [penalty for violation, &c.]

SEC. 11. And be it further enacted, That the Secretary of the Treasury, with the approval of the President, shall make such rules and regulations as are necessary to secure the proper and economical execution of the provisions of this act, and shall defray all expenses of such execution from the proceeds of fees imposed by said rules and regulations, of sales of captured and abandoned property, and of sales hereinbefore authorized. APPROVED, July 2, 1864.

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IN a communication of June 7, 1864, the Secretary of War urged the repeal of the $300 commutation clause of the Enrolment Act of March 3, 1863, on the ground that under it the draft brought money instead of men. A bill

to repeal the clause was reported by the Senate Committee on Military Affairs the next day, and on the 23d, by a vote of 24 to 7, the bill in amended form passed. In the House a bill to amend the act of 1863 was reported June 21. A motion to reject the bill resulting in a tie, the speaker voted in the negative. The first section, repealing the commutation clause, was stricken out, the vote being 100 to 50. On the 28th, after the rejection of numerous amendments and substitutes, the bill passed, the vote being 82 to 77, 23 not voting. Throughout the proceedings in the House there was strong opposition. The Senate incorporated its own bill of June 23, together with an amendment offered by Sherman providing for an income tax to pay the cost of bounties and drafts. The bill thus amended passed the Senate, June 29, by a vote of 27 to 7. The next day, on motion of Thaddeus Stevens, the House returned the bill to the Senate on the ground that the amendment proposing an income tax was unconstitutional, and a violation of the privileges of the House. The Senate struck out the amendment, but refused to recede from a further amendment regarding the enlistment of negroes. The bill went to a conference committee, whose report, July 2, was rejected by the Senate by a vote of 16 to 18. A second conference report was agreed to in the Senate by a vote of 18 to 17, and in the House by a vote of 66 to 55. July 18 a call for 500,000 men was issued under the act.

REFERENCES. Text in U.S. Statutes at Large, XIII, 379, 380. For the proceedings see the House and Senate Journals, 38th Cong., 1st Sess., and the Cong. Globe. The letter of the Secretary of War is in McPherson, Rebellion, 263, note. Extracts from discussions on the constitutionality of the act are given in McPherson, ibid., 272-274.

An Act further to regulate and provide for the enrolling and calling out the National Forces, and for other Purposes.

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Be it enacted. That the President of the United States may, at his discretion, at any time hereafter call for any number of men as volunteers for the respective terms of one, two, and three years for military service; and any such volunteer, or, in case of draft, as hereinafter provided, any substitute, shall be credited to the town, township, ward of a city, precinct, or election district, or of a county not so subdivided, towards the quota of which he may have volunteered or engaged as a substitute; and every volunteer who is accepted and mustered into the service for a term of one year, unless sooner discharged, shall receive, and be paid by the United States, a bounty of one hundred dollars; and if for a term of two years, unless sooner discharged, a

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