The last statement of the condition of the Alabama treasury was as follows:--

Balance in treasury, September 30, 1864 $3,713,959 Receipts, September 30, 1864, to May 24, 1865 3,776,188 ---------- Total $7,490,147 Disburs.e.m.e.nts, September 30, 1864, to May 24, 1865 6,698,853 ---------- Balance in treasury, September 30, 1864, to May 24, 1865 $791,294

The balance was in funds as follows:--

Checks on Bank of Mobile, payable in Confederate notes $11,440 Certificate of deposit, Bank of Mobile, payable in Confederate notes 1,330 Confederate and state notes in treasury 517,889 State notes, change bills (legal shinplasters) 250,004 Notes of state banks and branches 358 Bank-notes 424 Silver 337 Gold on hand 497 Gold on deposit in northern banks 35 -------- Balance $791,294

To dispose of nearly $7,000,000 in small notes must have kept the treasury very busy during the last seven months of its existence. It is interesting to note that the treasury kept at work until May 24, 1865, six weeks after the surrender of General Lee.

Special Appropriations and Salaries

Besides the regular appropriations for the usual expenses of the government, there were many extraordinary appropriations. These, of course, were for the war expenses which were far greater than the ordinary expenses. The chief item of these extraordinary appropriations was for the support of the indigent families of soldiers, and for this purpose about $11,000,000 was provided. For the military defence of the state several million dollars were appropriated, much of this being spent for arms and clothing for the Alabama troops, both in the Confederate and the state service. Money was granted to the University of Alabama and other military schools on condition that they furnish drill-masters for the state troops without charge. Hospitals were furnished in Virginia and in Alabama for the Alabama soldiers. The gunboat _Florida_ was bought for the defence of Mobile, and $150,000 was appropriated for an iron-clad ram for the same purpose. Loans were made to commanders of regiments to buy clothing for their soldiers, and the state began to furnish clothing, $50,000 being appropriated at one time for clothing for the Alabama soldiers in northern prisons. By March 12, 1862, Alabama had contributed $317,600 to the support of the Army of Northern Virginia.[426] Much was expended in the manufacture of salt in Alabama and in Virginia, which was sold at cost or given away to the poor; in the purchase of salt from Louisiana to be sold at a low price, and in bounties paid to salt makers in the state who sold salt at reasonable prices. The state also paid for medical attendance for the indigent families of soldiers. When the records and rolls of the Alabama troops in the Confederate service were lost, money was appropriated to have new ones made. Frequent grants were made to the various benevolent societies of the state whose object was to care for the maimed and sick soldiers, the widows and the orphans. Cotton and wool cards and agricultural implements were purchased and distributed among the poor. Slaves and supplies were taken for the public service and the owners compensated.

The appropriations for the usual expenses of the government were light, seldom more than twice the appropriations in times of peace, notwithstanding the depreciated currency. The salaries of public officers who received stated amounts ranged from $1500 to $4000 a year in state money. In 1862 the salaries of the professors in the State University were doubled on account of the depreciated currency, the president receiving $5000 and each professor $4000.[427] The members of the general a.s.sembly were more fortunate. In 1864 they received $15 a day for the time in session, and the clerks of the legislature, who were disabled soldiers or exempt from service, or were women, were paid the same amount. The salt commissioners drew salaries of $3000 a year in 1864 and 1865, though this amount was not sufficient to pay their board for more than six months.

Salaries were never increased in proportion to expenses. The compensation, in December, 1864, for capturing a runaway slave was $25, worth probably 50 cents in coin. For the inaugural expenses of Governor Watts, $500 in paper was appropriated.[428] Many laws were pa.s.sed, regulating and changing the fees and salaries of public officials. In October, 1884, for example, the salaries of the state officials, tax a.s.sessors and collectors, and judges were increased 50 per cent. Besides the general depreciation of the currency, the variations of values in the different sections of the state rendered such changes necessary. In the central part, which was safe for a long time from Federal raids, the currency was to the last worth more, and the prices of the necessaries of life were lower than in the more exposed regions. This fact was taken into consideration by the legislature when fixing the fees of the state and county officers in the various sections of the state.

Taxation

As a result of the policy adopted at the outset of meeting the extraordinary expenses by bond issues,[429] the people continued to pay the light taxes levied before the war, and paid them in paper money.

Though falling heavily on the salaried and wage-earning cla.s.ses, it was never a burden upon the agricultural cla.s.ses except in the poorest white counties. The poll tax brought in little revenue. Soldiers were exempt from its payment and from taxation on property to the amount of $500. The widows and orphans of soldiers had similar privileges. A special tax of 25 per cent on the former rate was imposed on all taxable property in November, 1861, and a year later, by acts of December 9, 1862, a far-reaching scheme of taxation was introduced. Under this poll taxes were levied as follows:--

White men, 21 to 60 years $0.75 Free negro men, 21 to 50 years 5.00 Free negro women, 21 to 45 years 3.00 Slaves (children to laborers in prime) 0.50 to 2.00 More valuable slaves 2.00 and up

And other taxes as follows:--

Crop liens 33-1/3% h.o.a.rded money 1% Jewellery, plate, furniture 1/2% Goods sold at auction 10% Imports 2% Insurance premiums (companies not chartered by state) 2% Playing cards, per pack $1.00 Gold watches, each 1.00 Gold chains, silver watches, clocks 0.50 Articles raffled off 10% Legacies, profits and sales, incomes 5% Profits of Confederate contractors 10% Wages of Confederate officials 10% Race tracks 10% Billiard tables, each $150.00 Bagatelle 20.00 Tenpin alleys, each 40.00 Readings and lectures, each 4.00 Pedler 100.00 Spirit rapper, per day 500.00 Saloon-keeper $40.00 to 150.00 Daguerreotypist 10.00 to 100.00 Slave trader, for each slave offered for sale 20.00

In 1863 a tax of 37-1/2 per cent was laid on Confederate and state bonds not in the hands of the original purchaser;[430] 7-1/2 per cent was levied on profits of banking, railroad companies, and on evidence of debt; 5 per cent on other profits not included in the act of the year before. The tax on gold and silver was to be paid in gold and silver; on bank-notes, in notes; on bonds, in coupons.[431] In December, 1864, the taxes levied by the laws of 1862 and 1863 were increased by 33-1/3 per cent. Taxes on gold and silver were to be paid in kind or in currency at its market value.[432] This was the last tax levied by the state under Confederate rule. From these taxes the state government was largely supplied.

A number of special laws were pa.s.sed to enable the county authorities to levy taxes-in-kind or to levy a certain amount in addition to the state tax, for the use of the county. The taxes levied by the state did not bear heavily upon the majority of the people, as nearly all, except the well-to-do and especially the slave owners, were exempt. The constant depreciation of the currency acted, of course, as a tax on the wage-earners and salaried cla.s.ses and on those whose income was derived from government securities.

While the state taxes were felt chiefly by the wealthier agricultural cla.s.ses and the slave owners, this was not the case with the Confederate taxes. The loans and gifts from the state, the war tax of August 19, 1861, the $15,000,000 loan, the Produce Loan, and the proceeds of sequestration--all had not availed to secure sufficient supplies. The Produce Loan of 1862 was subscribed to largely in Alabama, the Secretary of the Treasury issuing stocks and bonds in return for supplies,[433] and $1,500,000 of the $15,000,000 loan was raised in the state. Still the Confederate government was in desperate need. The farmers would not willingly sell their produce for currency which was constantly decreasing in value, and, when selling at all, they were forced to charge exorbitant prices because of the high prices charged them for everything by the speculators.[434] The speculator also ran up the prices of supplies beyond the reach of the government purchasing agents who had to buy according to the list of prices issued by impressment commissioners. So in the spring of 1863 all other expedients were cast aside and the Confederate government levied a genuine "Morton's Fork" tax. No more loans of paper money from the state, no more a.s.sumption of war taxes by the state governments because the people were opposed to any form of direct taxation, no more holding back of supplies by producers and speculators who refused to sell to the Confederate government except for coin; the new law stopped all that.[435]

First there was a tax of 8 per cent on all agricultural products in hand on July 1, 1863, on salt, wine, and liquors, and 1 per cent on all moneys and credits. Second, an occupation tax ranging from $50 to $200 and from 2-1/2 per cent to 20 per cent of their gross sales was levied on bankers, auctioneers, brokers, druggists, butchers, fakirs, liquor dealers, merchants, p.a.w.nbrokers, lawyers, physicians, photographers, brewers, and distillers; hotels paid from $30 to $500, and theatres, $500. Third, there was an income tax of 1 per cent on salaries from $1000 to $1500 and 2 per cent on all over $1500. Fourth, 10 per cent on all trade in flour, bacon, corn, oats, and dry goods during 1863. Fifth, a tax-in-kind, by which each farmer, after reserving 50 bushels of sweet and 50 bushels of Irish potatoes, 20 bushels of peas or beans, 100 bushels of corn or 50 bushels of wheat out of his crop of 1863, had to deliver (at a depot within 8 miles) out of the remainder of his produce for that year, 10 per cent of all wheat, corn, oats, rye, buckwheat, rice, sweet and Irish potatoes, hay, fodder, sugar, mola.s.ses, cotton, wool, tobacco, peas, beans, and peanuts; 10 per cent of all meat killed between April 24, 1863, and March 1, 1863.[436]

By this act $9,500,000 in currency was raised in Alabama. Alabama, with Georgia and North Carolina, furnished two-thirds of the tax-in-kind.

Though at first there was some objection to the tax-in-kind because it bore entirely on the agricultural cla.s.ses, yet it was a just tax so far as the large planters were concerned, since the depreciated money had acted as a tax on the wage-earners and salaried cla.s.ses, who had also some state tax to pay. The tax-in-kind fell heavily upon the families of small farmers in the white counties, who had no negro labor and who produced no more than the barest necessaries of life. To collect the tax-in-kind required an army of t.i.the gatherers and afforded fine opportunities of escape from military service. The state was divided into districts for the collection of all Confederate taxes, with a state collector at the head.

The collection districts were usually counties, following the state division into taxing districts. In 1864 the tobacco t.i.the was collected by treasury agents and not by the quartermaster's department, which had formerly collected it.[437] The tax of April 24, 1863, was renewed on February 17, 1864, and some additional taxes laid as follows:--

Real estate and personal property 5% Gold and silver ware, jewellery 10% Coin 5% Credits 5% Profits on liquors, produce, groceries, and dry goods 10%

On June 10, 1864, an additional tax of 20 per cent of the tax for 1864 was laid, payable only in Confederate treasury notes of the new issue. Four days later an additional tax[438] was levied as follows:--

Real estate and personal property and coin 5% Gold and silver ware 10% Profits on liquors, produce, groceries, and dry goods 30% Treasury notes of old issue (after January, 1865) 100%

The taxes during the war, state and Confederate, were in all five to ten times those levied before the war. Never were taxes paid more willingly by most of the people,[439] though at first there was opposition to them. It is probable that the authorities did not, in 1861 and 1862, give sufficient consideration to the fact that conditions were much changed, and that in view of the war the people would willingly have paid taxes that they would have rebelled against in times of peace.

Of the tax-in-kind for 1863, $100,000 was collected in Pickens county alone, one of the poorest counties in the state. The produce was sent in too freely to be taken care of by the government quartermasters, and, as there was enough on hand for a year or two, much of it was ruined for lack of storage room.[440] An English traveller in east Alabama, in 1864, reported that there was abundance. The tax-in-kind was working well, and enough provisions had already been collected for the western armies of the Confederacy to last until the harvest of 1865.[441] There were few railroads in the state and the rolling stock on these was scarce and soon worn out. So the supplies gathered by the tax-in-kind law could not be moved. Hundreds of thousands of pounds of beef and bacon and bushels of corn were piled up in the government warehouses and at the depots, while starvation threatened the armies and the people also in districts remote from the railroads or rivers. At the supply centres of Alabama and along the railroads in the Black Belt there were immense stores of provisions.

When the war ended, notwithstanding the destruction by raids, great quant.i.ties of corn and bacon were seized or destroyed by the Federal troops.[442]

Impressment

The state quite early began to secure supplies by impressment. Salt was probably the first article to which the state laid claim. Later the officials were authorized to impress and pay for supplies necessary for the public service. In 1862 the governor was authorized to impress shoes, leather, and other shoemakers' materials for the use of the army. The legislature appropriated $250,000 to pay for impressments under this law.[443] In case of a refusal to comply with an order of impressment the sheriff was authorized to summon a _posse comitatus_ of not less than 20 men and seize double the quant.i.ty first impressed. In such cases no compensation was given.[444] The people resisted the impressment of their property. By a law of October 31, 1862, the governor was empowered to impress slaves, and tools and teams for them to work with, in the public service against the enemy, and $1,000,000 was appropriated to pay the owners.[445] Slaves were regularly impressed by the Confederate officials acting in cooperation with the state authorities, for work on fortifications and for other public service. Several thousand were at work at Mobile at various times. They were secured usually by requisition on the state government, which then impressed them. In December, 1864, Alabama was asked for 2500 negroes for the Confederate service.[446] The people were morbidly sensitive about their slave property, and there was much discontent at the impressment of slaves, even though they were paid for. As the war drew to a close, the people were less and less willing to have their servants impressed.

In the spring of 1863, the Confederate Congress authorized the impressment of private property for public use.[447] The President and the governor each appointed an agent, and these together fixed the prices to be paid for the property taken.[448] Every two months they published schedules of prices, which were always below the market prices.[449] Evidently impressment had been going on for some time, for, in November, 1862, Judge Dargan, member of Congress from Alabama, wrote to the President that the people from the country were afraid to bring produce to Mobile for fear of seizure by the government. In November, 1863, the Secretary of War issued an order that no supplies should be impressed when held by a person for his own consumption or that of his employees or slaves, or while being carried to market for sale, except in urgent cases and by order of a commanding general. Consequently the land was filled with agents buying a year's supply for railroad companies, individuals, manufactories, and corporations, relief a.s.sociations, towns, and counties--all these to be protected from impressment. Most speculators always had their goods on the way to market for sale. The great demand caused prices to rise suddenly, and the government, which had to buy by scheduled prices, could not compete with private purchasers; yet it could not legally impress. There was much abuse of the impressment law, especially by unauthorized persons.

It was the source of much lawless conduct on the part of many who claimed to be Confederate officials, with authority to impress.[450] The legislature frequently protested against the manner of execution of the law. In 1863 a state law was pa.s.sed which indicates that the people had been suffering from the depredations of thieves who pretended to be Confederate officials in order to get supplies. It was made a penal offence in 1862 and again in 1863, with from one to five years'

imprisonment and $500 to $5000 fine, to falsely represent one's self as a Confederate agent, contractor, or official.[451] The merchants of Mobile protested against the impressment of sugar and mola.s.ses, as it would cause prices to double, they said.[452] There was much complaint from sufferers who were never paid by the Confederate authorities for the supplies impressed. Quartermasters of an army would sometimes seize the necessary supplies and would leave with the army before settling accounts with the citizens of the community, the latter often being left without any proof of their claim. In north Alabama, especially, where the armies never tarried long at a place, the complaint was greatest. To do away with this abuse resulting from carelessness, the Secretary of War appointed agents in each congressional district to receive proof of claims for forage and supplies impressed.[453] The state wanted a Confederate law pa.s.sed to authorize receipts for supplies to be given as part of the tax-in-kind.[454] The unequal operation of the impressment system may be seen in the case of Clarke and Monroe counties. In the former, from 16 persons, property amounting to $1700 was impressed. In Monroe, from 37 persons $60,000 worth was taken. The delay in payment was so long that the money was practically worthless when received.[455]

Debts, Stay Laws, Sequestration

In the secession convention the question of indebtedness to northern creditors came up, and Watts of Montgomery proposed confiscation, in case of war, of the property of alien enemies and of debts due northern creditors. The proposal was supported by several members, who declared that the threat of confiscation would do much to promote peace. But the majority of the convention were opposed to any measure looking toward confiscation, and the matter was carried over for the Confederate government to settle.[456]

Stay laws were enacted in Alabama on February 8, 1861, and on December 10, 1861. The Confederate Provisional Congress enacted a law (May 21, 1861) that debtors to persons in the North (except in Delaware, Maryland, Missouri, and the District of Columbia) be prohibited from paying their debts during the war.[457] They should pay the amount of the debt into the Confederate treasury and receive a certificate relieving them from their debts, transferring it to the Confederate treasury. A Confederate law of November 17, 1862, provided that when payment of the interest on a debt was proffered in Confederate treasury notes and refused, it should be unlawful for the plaintiff to secure more than 1/4 of 1 per cent interest.

On August 30, 1861, Congress, in retaliation for the confiscation and destruction of the property of Confederate citizens, pa.s.sed the Sequestration Act, which held all property of alien enemies (except citizens of the border states) as indemnity for such destruction and devastation.[458] Under the Sequestration Act receivers were appointed in each county to take possession of all property belonging to alien enemies.

They were empowered to interrogate all lawyers, bank officials, officials of corporations engaged in foreign trade, and all persons and agents engaged for persons engaged in foreign trade, for the purpose of discovering such property. The proceeds were to be held for the indemnity of loyal citizens suffering under the confiscation laws of the United States.[459] Later the property thus seized was sold and the money paid into the Confederate treasury.[460] In the last days of the war (February 15, 1865), the Sequestration Act was extended to include the property of disloyal citizens who had gone within the Federal lines to escape military service, or who had entered the Union service to fight against the Confederacy.[461]

In December, 1861, a law was pa.s.sed by the legislature which provided that no suit by or for an alien enemy for debt or money should be prosecuted in any court in Alabama. No execution was to be issued to an alien enemy, and suits already brought could be dismissed on the motion of the defendant.[462] In Alabama much of the time of the Confederate district courts was taken up by sequestration cases. In fact, they did little else. However, but little money was ever turned into the Confederate treasury from this source.[463]

Just as the state sent nearly all its coin through the blockade to pay the interest of its London debt, so the Mobile, Montgomery, or Selma merchant cancelled his indebtedness and sent money, as he was able, during the early years of the war, to his northern and European creditors. Most debts due to northerners were concealed from the government. The stringent laws pa.s.sed against it were of no avail. As a source of revenue the sequestration of the property of alien enemies hardly paid expenses. After all, however, the northern creditor probably lost nearly all his accounts in the South in the general wreck of property in 1865.

Trade, Barter, Prices

After the outbreak of war, business was soon almost at a standstill. The government monopolized all means of transportation for military purposes.

There were few good railroads in the state and few good wagon roads. In one section there would be plenty, while seventy-five or a hundred miles away there would be great suffering from want. Depreciated currency and the impressment laws made the producer wary of going to market at all. He preferred to keep what he had and live upon it, effecting changes in the old way of barter. Cows, hogs, chickens, mules, farm implements, cotton, corn, peas--all were exchanged and reexchanged for one another. The farmer tended more and more to become independent of the merchant and of money.

Consequently the townspeople suffered. Confederate money, at first received at par, soon began to depreciate, though the most patriotic people considered it their duty to accept it at its par value.[464]

[Ill.u.s.tration: ALABAMA MONEY.]

[Ill.u.s.tration: CONFEDERATE POSTAGE STAMPS.]

[Ill.u.s.tration: PRIVATE MONEY. Printed in large sheets on one side only and never used. The other side is a state bill similar to the one above. Paper was scarce, and the state money was printed so that when cut apart the private money was destroyed.]

At the end of 1861, Confederate money was worth as much[465] as Federal, but it had depreciated. Often private credit was better than public, and individuals in need of a more stable circulating medium issued notes or promises to pay which in the immediate neighborhood pa.s.sed current at their face value. Great quant.i.ties of this "card money" or shinplasters were issued, and in some communities it almost supplanted the legal money as a more reliable medium of exchange. The Alabama legislature pa.s.sed severe laws against the practice of issuing "card money," but with little effect.

The effect of depreciation of paper money was the same as a tax so far as the people were concerned. Forced into circulation, it supported the government, but it gradually depreciated and each holder lost a little.

Finally, when almost worthless, it was practically repudiated by the state and by the Confederacy, and funding laws were pa.s.sed, providing for the redemption of old notes at a low rate in new issues. Depreciation of the currency caused extravagance and other more evil results. A person who handled much money felt that he must at once get rid of all that came into his possession in order to avoid loss by depreciation. Consequently there was speculation, reckless spending, and extravagance. Money would be spent for anything offered for sale. If useful things were not to be had, then luxuries would be bought, such as silks, fancy articles, liquors, etc., from blockade-runners. This was especially the case in Selma, Mobile, and Montgomery, and in northern Alabama. Persons formerly of good character frequently drifted into extravagant and dissipated habits, because they tried to spend their money and there were not enough legitimate ways in which to do so.

Depreciation, speculation, and scarcity caused prices to rise, especially the prices of the necessaries of life. These varied in the different sections of the state. In Mobile, in 1862, prices were as follows:--

Shoes, per pair $25.00 Boots, per pair 40.00 Overcoats, each 25.00 Hats, each 15.00 Flour, per barrel $40.00 to 60.00 Corn, per bushel 3.25 b.u.t.ter, per pound 1.75 Bacon, per pound 10.00 Soap, per pound (cheap) 1.00 Candles, per pound 2.50 Sugar, per pound $0.50 to .75 Coffee, per pound 1.75 to 3.25 Tea, per pound 10.00 to 20.00 Cotton and wool cards, per pair 2.00 Board per week at the Battle House, in 1862 $3.50; in 1863, 8.00[466]

In May, 1862, at Huntsville, then in the hands of the Federals, some prices were, in Federal currency:--