The Day of the Confederacy: A Chronicle of the Embattled South — John Shaqi
The Day of the Confederacy: A Chronicle of the Embattled SouthStephenson, Nathaniel W. (Nathaniel Wright)
History
The Day of the Confederacy: A Chronicle of the Embattled South
Stephenson, Nathaniel W. (Nathaniel Wright)
Confederate States of America -- History
Early in 1863 the Confederate Government presented to the country a
program in which the main features were three. Of these the two which
did not rouse immediate hostility in the party of the Examiner and the
Mercury were the Impressment Act of March, 1863 (amended by successive
acts), and the act known as the Tax in Kind, which was approved the
following month. Though the Impressment Act subsequently made vast
trouble for the Government, at the time of its passage its beneficial
effects were not denied. To it was attributed by the Richmond Whig the
rapid fall of prices in April, 1863. Corn went down at Richmond from $12
and $10 a bushel to $4.20, and flour dropped in North Carolina from $45
a barrel to $25. Under this act commissioners were appointed in each
State jointly by the Confederate President and the Governor with the
duty of fixing prices for government transactions and of publishing
every two months an official schedule of the prices to be paid by the
Government for the supplies which it impressed.
The new Tax Act attempted to provide revenues which should not be paid
in depreciated currency. With no bullion to speak of, the Confederate
Congress could not establish a circulating medium with even an
approximation to constant value. Realizing this situation, Memminger had
advised falling back on the ancient system of tithes and the support of
the Government by direct contributions of produce. After licensing a
great number of occupations and laying a property tax and an income tax,
the new law demanded a tenth of the produce of all farmers. On this law
the Mercury pronounced a benediction in an editorial on The Fall of
Prices, which it attributed to "the healthy influence of the tax bill
which has just become law." ¹
¹ The fall of prices was attributed by others to a funding act,--one of
several passed by the Confederate Congress--which, in March, 1863, aimed
by various devices to contract the volume of the currency. It was very
generally condemned, and it anticipated the yet more drastic measure,
the Funding Act of 1864, which will be described later.
Had these two measures been the whole program of the Government, the
congressional session of the spring of 1863 would have had a different
significance in Confederate history. But there was a third measure that
provoked a new attack on the Government. The gracious words of the
Mercury on the tax in kind came as an interlude in the midst of a bitter
controversy. An editorial of the 12th of March headed A Despotism over
the Confederate States Proposed in Congress amounted to a declaration of
war. From this time forward the opposition and the Government drew
steadily further and further apart and their antagonism grew steadily
more relentless.
Public-domain text, read in full here on John Shaqi.
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