Chapter IV: Economic and Social Conditions (1)

SEC. 1. INDUSTRIAL DEVELOPMENT DURING THE WAR

Early in the war the blockade of the southern ports became so effective that the southern states were shut off from their usual sources of supply by sea. Trade through the lines between the United States and the Confederate States was forbidden, and Alabama, owing to its central location, suffered more from the blockade than any other state. For three years the Federal lines touched the northern part of the state only, and, as no railroads connected north and south Alabama, contraband trade was difficult in that direction. Mobile, the only port of the state, was closely blockaded by a strong Federal fleet. The railroad communications with other states were poor, and the Confederate government usually kept the railroads busy in the public service. Consequently, the people of Alabama were forced to develop certain industries in order to secure the necessaries of life. But outside these the industrial development was naturally in the direction of the production of materials of war.

Military Industries

During the first two years of the war volunteers were much more plentiful than equipment. The arms seized at Mount Vernon and other arsenals in Alabama were old flint-locks altered for the use of percussion caps and were almost worthless, being valued at $2 apiece. These were afterwards transferred to the Confederate States, which returned but few of them to arm the Alabama troops.[350] Late in 1860 a few thousand old muskets were purchased by the state from the arsenal at Baton Rouge, Louisiana, for $2.50 each. A few Mississippi rifles were also secured, and with these the Second Alabama Infantry was armed. These rifles, however, required a special kind of ammunition, and this made them almost worthless. Other arms were found to be useless for the same reason. Both cavalry and infantry regiments went to the front armed with single and double barrelled shot-guns, squirrel rifles, muskets, flint-locks, and old pistols. No ammunition could be supplied for such a miscellaneous collection. Many regiments had to wait for months before arms could be obtained. Before October, 1861, several thousand men had left Alabama unarmed, and several thousand more, also unarmed, were left waiting in the state camps.[351] In 1861 the state legislature bought a thousand pikes and a hundred bowie-knives to arm the Forty-eighth Militia Regiment, which was defending Mobile. The sum of $250,000 was appropriated to lend to those who would manufacture firearms for the government.[352] In 1863 the Confederate Congress authorized the enlistment of companies armed with pikes who should take the places of men armed with firearms when the latter were dead or absent.[353] Private arms--muskets, rifles, pistols, shot-guns, carbines--were called for and purchased from the owners when not donated.[354] An offer was made to advance fifty per cent of the amount necessary to set up machinery for the manufacture of small arms.[355] Old Spanish flint-lock muskets were brought in from Cuba through the blockade, altered, and placed in the hands of the troops.[356]

In 1862 a small-arms factory was established at Tallassee which employed 150 men and turned out about 150 carbines a week. At the end of 1864 it had produced only 6000.[357] At Montgomery the Alabama Arms Manufacturing Company had the best machinery in the Confederacy for making Enfield rifles. At Selma were the state and Confederate arsenals, a navy-yard, and naval foundry with machinery of English make, of the newest and most complete pattern. It had been brought through the blockade from Europe and set up at Selma because that seemed to be a place safe from invasion and from the raids of the enemy. Here the vessels for the defence of Mobile were built, heavy ordnance was cast, with shot and shell, and plating for men-of-war. The armored ram _Tennessee_, famous in the fight in Mobile Bay, the gunboats _Morgan_, _Selma_, and _Gaines_ were all built at the Selma navy-yard--guns, armor, and everything being manufactured on the spot. When the _Tennessee_ surrendered, after a terrible battle, its armor had not been penetrated by a single shot or shell. The best cannon in America were cast at the works in Selma. The naval foundry employed 3000 men, the other works as many more. Half the cannon and two-thirds of the fixed ammunition used during the last two years of the war were made at these foundries and factories. The foundry destroyed by Wilson was pronounced by experts to be the best in existence. It could turn out at short notice a fifteen-inch Brooks or a mountain howitzer. Swords, rifles, muskets, pistols, caps, were manufactured in great quantities. There were more than a hundred buildings, which covered fifty acres; and after Wilson's destructive work, Truman, the war correspondent, said that they presented the greatest mass of ruins he had ever seen.[358] There was a navy-yard on the Tombigbee, in Clarke County, near the Sunflower Bend. Several small vessels had been completed and several war vessels, probably gunboats, were in process of construction here when the war ended; both vessels and machinery were destroyed by order of the Confederate authorities.[359]

Gunpowder was scarce throughout the war, and nitre or saltpetre, its principal ingredient, was not to be purchased from abroad. A powder mill was established at Cahaba,[360] but the ingredients were lacking. Charcoal for gunpowder was made from willow, dogwood, and similar woods. The nitre on hand was soon exhausted, and it was sought for in the caves of the limestone region of Alabama and Tennessee. In north Alabama there were many of these large caves. The earth in them was dug up and put in hoppers and water poured over it to leach out the nitre. The lye was caught (just as for making soft soap from lye ashes), boiled down, and then dried in the sunshine.[361] The earth in cellars and under old houses was scraped up and leached for the nitre in it. In 1862 a corps of officers under the title of the Nitre and Mining Bureau[362] was organized by the War Department to work the nitre caves of north Alabama which lay in the doubtful region between the Union and the Confederate lines, and which were often raided by the enemy. The men were subjected to military discipline and were under the absolute command of the superintendent, who often called them out to repulse Federal raiders. As much as possible in this department, as in the others, exempts and negroes were used for laborers. For clerical work those disabled for active service were appointed, and instructions were issued that employment should be given to needy refugee women.[363] These important nitre works were repeatedly destroyed by the Federals, who killed or captured many of the employees.[364] In the district of upper Alabama, under the command of Captain William Gabbitt, whose headquarters were at Blue Mountain (now Anniston), most of the work was done in the limestone caves of the mountain region.[365] Several hundred men--whites and negroes--were employed in extracting the nitre from the cave earth. To the end of September, 1864, this district had produced 222,665 pounds of nitre at a cost of $237,977.17, war prices.[366]

The supply from the caves proved insufficient, and artificial nitre beds or nitraries were prepared in the cities of south and central Alabama. It was necessary to have them near large towns, in order to obtain a plentiful supply of animal matter and potash, and the necessary labor. Efforts were also made to induce planters in marl or limestone counties to work plantation earth.[367] Under the supervision of Professor W. H. C. Price, nitraries were established at Selma, Mobile, Talladega, Tuscaloosa, and Montgomery. Negro labor was used almost entirely, each negro having charge of one small nitre bed. To October, 1864, the nitraries of south Alabama produced 34,716 pounds at a cost of $26,171.14, which was somewhat cheaper than the nitre from the caves. From these nitraries better results were obtained than from the French, Swedish, and Russian nitraries which served as models. The Confederate nitre beds were from sixteen to twenty-seven months old in October, 1864, and hence not at their best producing stage. Yet, allowing for the difference in age, they gave better results, as they produced from 2.57 to 3.3 ounces of nitre per cubic foot, while the average European nitraries at four years of age gave 4 ounces per cubic foot. Earth from under old houses and from cellars produced from 2 to 4 ounces to the cubic foot. Nitre caves produced from 6 to 12 ounces per cubic foot. Most of the nitre thus obtained was made into powder at the mills in Selma. There were some private manufacturers of nitre, and to encourage these the Confederate Congress authorized the advance to makers of fifty per cent of the cost of the necessary machinery.[368]

The state legislature appropriated $30,000 to encourage the manufacture and preparation of powder, saltpetre (nitre), sulphur, and lead. Little of the last article was found in Alabama.[369] Some of the powder works were in operation as early as 1861, and in that year the War Department gave Dr. Ullman of Tallapoosa a contract to supply 1000 to 1500 pounds of sulphur a day.[370]

The Confederate Nitre and Mining Bureau had charge of the production of iron in Alabama for the use of the Confederacy. The mines were principally in the hilly region south of the Tennessee River, where several furnaces and iron works were already established before the war. Two or three new companies, with capital of $1,000,000 each, had bought mineral lands and had commenced operations when the war broke out. The Confederate government bought the property or gave the companies financial assistance. The iron district was often raided by the Federals, who blew up the furnaces and wrecked the iron works.[371] The Irondale works, near Elyton, were begun in 1862, and made much iron, but they also were destroyed in 1864 by the Federals.[372] Other large iron furnaces, with their forges, foundries, and rolling-mills, were destroyed by Rousseau's raid in 1864. The government employed several hundred conscripts and several thousand negroes in the mines and rolling-mills. It also offered fifty per cent of the cost of equipment to encourage the opening of new mines by private owners.[373] There is record of only about 15,000 tons of Alabama iron being mined by the Confederacy, but probably there was much more.[374] The iron was sent to Selma, Montgomery, and other places for manufacture. The ordnance cast in Selma was of Alabama iron; and after the war, when the United States sold the ruins of the arsenal, the big guns were cut up and sent to Philadelphia. Here the fine quality of the iron attracted the attention of experts and led to the development by northern capital of the iron industry in north Alabama.

The Confederate government encouraged the building and extension of railroads, and paid large sums to them for the transportation of troops, munitions of war, and military supplies.[375] Several lines of road within the state were made military roads, and the government extended their lines, built bridges and cars, and kept the lines in repair.[376] In 1862 $150,000 was advanced to the Alabama and Mississippi Railway Company, to complete the line between Selma and Meridian,[377] and the duty on iron needed for the road was remitted.[378] On June 25 of this year this road was seized by the military authorities in order to finish it,[379] and because of the lack of iron D. H. Kenny was directed (July 21, 1863) to impress the iron and rolling stock belonging to the Alabama and Florida Railway, the Gainesville Branch of the Mobile and Ohio, the Cahaba, Marion, and Greensborough Railroad, and the Uniontown and Newberne Railroad. The Alabama and Mississippi road was a very important line, since it tapped the supply districts of Mississippi and the Black Belt of Alabama. There were many difficulties in the way of the builders. In 1862 the locomotives were wearing out and no iron was to be obtained. In the fall of the same year the planters withdrew their negroes who were working on the road, and left the bridges half finished. But finally, in December, 1862, the road was completed.[380] In the fall of 1862 a road between Blue Mountain, Alabama, and Rome, Georgia, was planned, and $1,122,480.92 was appropriated by the Confederate Congress, a mortgage being taken as security.[381] This road was graded and some bridges built and iron laid, but was not in running order before the end of the war.

Telegraph lines, which had been few before the war, were now placed along each railroad, and several cross-country lines were put up. The first important new line was along the Mobile and Ohio Railroad, from Mobile to Meridian.[382]

Private Manufacturing Enterprises

Both the state and the Confederate government encouraged manufactures by favorable legislation. The Confederate government was always ready to advance half of the cost of the machinery and to take goods in payment. A law of Alabama in 1861 secured the rights of inventors and authors. All patents under the United States laws prior to January 11, 1861, were to hold good under the state laws, and the United States patent and copyright laws were adopted for Alabama.[383] Later, jurisdiction over patents, inventions, and copyrights was transferred to the Confederate government. A bonus of five and ten cents apiece on all cotton and wool cards made in Alabama was offered by the legislature in December, 1861.[384] All employees in iron mills, in foundries, and in factories supplying the state or Confederate governments with arms, clothing, cloth, and the like were declared by the state exempt from military duty.

Factories were soon in operation all over the state, especially in central Alabama. In all places where there were government factories there also were found factories conducted by private individuals. In 1861 there were factories at Tallassee, Autaugaville, and Prattville, with 23,000 spindles and 800 employees, which could make 5000 yards of good tent cloth a day.[385] And other cotton mills were established in north Alabama as early as 1861.[386] The Federals burned these buildings and destroyed the machinery in 1862 and 1863. There was the most "unsparing hostility displayed by the northern armies to this branch of industry. They destroyed instantly every cotton factory within their reach."[387]

At Tuscaloosa were cotton and shoe factories, tanneries, and an iron foundry. A large cotton factory was established in Bibb County, and at Gainesville there were workshops and machine-shops. In addition to the government works, Selma had machine-shops, car shops, iron mills, and foundries, cotton, wool, and harness factories, conducted by private individuals. There were cotton and woollen factories at Prattville and Autaugaville, and at Montgomery were car shops, harness shops, iron mills, foundries, and machine-shops. The best tent cloth and uniform cloth was made at the factories of Tallassee. The state itself began the manufacture of shoes, salt, clothing, whiskey, alcohol, army supplies, and supplies for the destitute.[388] Extensive manufacturing establishments of various kinds in Madison, Lauderdale, Tuscumbia, Bibb, Autauga, Coosa, and Tallapoosa counties were destroyed during the war by the Federals. There were iron works in Bibb, Shelby, Calhoun, and Jefferson counties, and in 1864 there were a dozen large furnaces with rolling-mills and foundries in the state.[389] However, in that year the governor complained that though Alabama had immense quantities of iron ore, even the planters in the iron country were unable to get sufficient iron to make and mend agricultural implements, since all iron that was mined was used for purposes of the Confederacy.[390] The best and strongest cast iron used by the Confederacy was made at Selma and at Briarfield. The cotton factories and tanneries in the Tennessee valley were destroyed in 1862 by the Federal troops.[391]

Salt Making

Salt was one of the first necessaries of life which became scarce on account of the blockade. The Adjutant and Inspector-General of Alabama stated, March 20, 1862, that the Confederacy needed 6,000,000 bushels of salt, and that only an enormous price would force the people to make it. In Montgomery salt was then very scarce, bringing $20 per sack, and speculators were using every trick and fraud in order to control the supply.[392] The poor people especially soon felt the want of it, and in November, 1861, the legislature passed an act to encourage the manufacture of salt at the state reservation in Clarke County.[393] The state government even began to make salt at these salt springs. At the Upper Works, near Old St. Stephens, 600 men and 120 teams were employed at 30 furnaces, which were kept going all the time, the production amounting to 600 bushels a day. These works were in operation from 1862 to 1865. The Lower Works, near Sunflower Bend on the Tombigbee River, for four years employed 400 men with 80 teams at 20 furnaces. The production here was about 400 bushels a day. The Central Works, near Salt Mountain, were under private management, and, it is said, were much more successful than the works under state management.[394] The price of salt at the works ranged from $2.50 to $7 a bushel in gold, or from $3 to $40 in currency. From 1861 to 1865, 500,000 bushels of good salt were produced each year.

To obtain the salt water, wells were bored to depths ranging from 60 to 100 feet,--one well, however, was 600 feet deep,--while in the bottom or swamp lands brine was sometimes found at a depth of 8 feet. The water at first rose to the surface and overflowed about 30 gallons a minute in some wells, but as more wells were sunk the brine ceased to flow out and had to be pumped about 16 feet by steam or horse power. It was boiled in large iron kettles like those then used in syrup making and which are still seen in remote districts in the South. Seven or eight kettles of water would make one kettle of salt. This was about the same percentage that was obtained at the Onondaga (New York) salt springs. About the same boiling was required as in making syrup from sugar-cane juice. The wells were scattered for miles over the country and thousands of men were employed. For three years more than 6000 men, white and black, were employed at the salt works of Clarke County, from 2000 to 3000 working at the Upper Works alone. All were not at work at the furnaces, but hundreds were engaged in cutting and hauling wood for fuel, and in sacking and barrelling salt. It is said that in the woods the blows of no single axe nor the sound of any single falling tree could be distinguished; the sound was simply continuous. Nine or ten square miles of pine timber were cleared for fuel.

The salt was sent down the Tombigbee to Mobile or conveyed in wagons into the interior of Alabama, Mississippi, and Georgia. These wagons were so numerous that for miles from the various works it was difficult to cross the road. The whole place had the appearance of a manufacturing city. These works had been in operation to some extent since 1809. The wells were exhausted from 1865 to 1870, when they began flowing again.

Besides the smaller works and large private works there were hundreds of smaller establishments. When salt was needed on a plantation in the Black Belt, the overseer would take hands, with pots and kettles, and go to the salt wells, camp out for several weeks, and make enough salt for the year's supply. All private makers had to give a certain amount to the state.[395] People from the interior of the state and from southeast Alabama went to the Florida coast and made salt by boiling the sea water. The state had salt works at Saltville, Virginia, but found it difficult to get transportation for the product. Salt was given to the poor people by the state, or sold to them at a moderate price. The legislature authorized the governor to take possession of all salt when necessary for public use, paying the owners a just compensation; $150,000 was appropriated for this purpose in 1861, and in 1862 it was made a penal offence to send salt out of the state.[396] A Salt Commission was appointed to look after the salt works owned by the state in Louisiana. A private salt maker in Clarke County made a contract to deliver two-fifths of his product to the state at the cost of manufacture, and the state purchased some salt from the Louisiana saltbeds.[397] As salt became scarcer the people took the brine in old pork and beef barrels and boiled it down. The soil under old smoke-houses was dug up, put in hoppers, and bleached like ashes, and the brine boiled down and dried in the sunshine.[398]

At Bon Secour Bay, near Mobile, there were salt works consisting of fifteen houses, capable of making seventy-five bushels per day from the sea-water. In 1864 these were burned by the Federals, who often destroyed the salt works along the Florida coast.[399] At Saltmarsh, ten miles west of Selma, there were works which furnished much of the salt used in Mississippi, central Alabama, and east Georgia during the years 1862, 1863, and 1864. Wells were dug to the depth of twelve or fifteen feet, when salt water was struck. The wells were then curbed, furnaces of lime rock were built, and upon them large kettles were placed. The water was pumped from the wells and run into the kettles through troughs, then boiled down, and the moisture evaporated by the sun. The fires were kept up day and night. A large number of blacks and whites were employed at these wells, and, as salt makers were exempt from military duty, the work was quite popular.[400]

Besides the industries above mentioned there were many minor enterprises. Household manufactures were universal. The more important companies were chartered by the legislature. The acts of the war period show that in 1861 there were incorporated six insurance companies and the charters of others were amended to suit the changed conditions; three railroad companies were incorporated, and aid was granted to others for building purposes. Roads carrying troops and munitions free were exempted from taxation. Two mining and manufacturing companies were incorporated, four iron and coal companies, one ore foundry, an express company,[401] a salt manufacturing company, a chemical manufacturing company, a coal and leather company, and a wine and fruit company. In 1862 the legislature incorporated four iron and foundry companies, a railroad company, the Southern Express Company, a gas-light company, six coal and iron companies, a rolling-mill, and an oil company, and amended the charters of four railroad companies and two insurance companies. In 1864 two railroad companies were given permission to manufacture alcohol and lubricating oil, and the Citronelle Wine, Fruit, and Nursery Company was incorporated. Various other manufacturing companies--of drugs, barrels, and pottery--were established.

Besides salt the state made alcohol and whiskey for the poor. Every man who had a more than usual regard for his comfort and wanted to keep out of the army had a tannery in his back yard, and made a few shoes or some harness for the Confederacy, thus securing exemption.

Governor Moore, in his message to the legislature on October 28, 1861, said: "Mechanical arts and industrial pursuits, hitherto practically unknown to our people, are already in operation. The clink of the hammer and the busy hum of the workshop are beginning to be heard throughout our land. Our manufactories are rapidly increasing and the inconvenience which would result from the continuance of the war and the closing of our ports for years would be more than compensated by forcing us to the development of our abundant resources, and the tone and the temper it would give to our national character. Under such circumstances the return of peace would find us a self-reliant and truly independent people."[402] And had the war ended early in 1864, the state would have been well provided with manufactures.

The raids through the state in 1864 and 1865 destroyed most of the manufacturing establishments. The rest, whether owned by the government or private persons, were seized by the Federal troops at the surrender and were dismantled.[403]

SEC. 2. CONFEDERATE FINANCE IN ALABAMA

Banks and Banking

In a circular letter dated December 4, 1860, and addressed to the banks, Governor Moore announced that should the state secede from the Union, as seemed probable, $1,000,000 in specie, or its equivalent, would be needed by the administration. The state bonds could not be sold in the North nor in Europe, except at a ruinous discount, and a tax on the people at this time would be inexpedient. Therefore he recommended that the banks hold their specie. Otherwise there would be a run on the banks, and should an extra session of the legislature be called to authorize the banks to suspend specie payments, such action would produce a run and thus defeat the object. He requested the banks to suspend specie payments, trusting to the convention to legalize this action.[404] The governor then issued an address to the people stating his reasons for such a step. It was done, he said, at the request and by the advice of many citizens whose opinions were entitled to respect and consideration. Such a course, they thought, would relieve the banks from a run during the cotton season, would enable them to aid the state, would do away with the expense of a special session of the legislature, would prevent the sale of state bonds at a great sacrifice, and would prevent extra taxation of the people in time of financial crisis.[405]

Three banks--the Central, Eastern, and Commercial--suspended at the governor's request and made a loan to the state of $200,000 in coin. Their suspension was legalized later by an ordinance of the convention. The Bank of Mobile, the Northern Bank, and the Southern Bank refused to suspend, though they announced that the state should have their full support. The legislature passed an act in February, 1861, authorizing the suspension on condition that the banks subscribe for ten year state bonds at their par value. The bonds were to stand as capital, and the bills issued by the banks upon these bonds were to be receivable in payment of taxes. The amount which each bank was to pay into the treasury for the bonds was fixed, and no interest was to be paid by the state on these bonds until specie payments were resumed. All the banks suspended under these acts, and thus the government secured most of the coin in the state.[406] In October, 1861, before all the banks had suspended, state bonds at par to the amount of $975,066.68 had been sold--all but $28,500 to the banks. By early acts specie payments were to be resumed in May, 1862, but in December, 1861, the suspension was continued until one year after the conclusion of peace with the United States. By this law the banks were to receive at par the Confederate treasury notes in payment of debts, their notes being good for public dues. The banks were further required to make a loan to the state of $200,000 to pay its quota of the Confederate war tax of August 16, 1861. So the privilege of suspension was worth paying for.[407]

The banking law was revised by the convention so that a bank might deposit with the state comptroller stocks of the Confederate States or of Alabama, receiving in return notes countersigned by the comptroller amounting to twice the market value of the bonds deposited. If a bank had in deposit with the comptroller under the old law any stocks of the United States, they could be withdrawn upon the deposit of an equal amount of Confederate stocks or bonds of the state. The same ordinance provided that none except citizens of Alabama and members of state corporations might engage in the banking business under this law. But no rights under the old law were to be affected. It was further provided that subsequent legislation might require any "free" bank to reduce its circulation to an amount not exceeding the market value of the bonds deposited with the comptroller. The notes thus retired were to be cancelled by the comptroller.[408] The suspension of specie payments was followed by an increase of banking business; note issues were enlarged; eleven new banks were chartered,[409] and none wound up affairs. They paid dividends regularly of from 6 to 10 per cent in coin, in Confederate notes, or in both. Speculation in government funds was quite profitable to the banks.

Issues of Bonds and Notes

The convention authorized the general assembly of the state to issue bonds to such amounts and in such sums as seemed best, thus giving the assembly practically unlimited discretion. But it was provided that money must not be borrowed except for purposes of military defence, unless by a two-thirds vote of the members elected to each house; and the faith and credit of the state was pledged for the punctual payment of the principal and interest.[410]

The legislature hastened to avail itself of this permission. In 1861 a bond issue of $2,000,000 for defence, and not liable to taxation, was authorized at one time; at another, $385,000 for defence, besides an issue of $1,000,000 in treasury notes receivable for taxes. Of the first issue authorized, only $1,759,500 were ever issued. Opposition to taxation caused the state to take up the war tax of $2,000,000 (August 19, 1861), and for this purpose $1,700,000 in bonds was issued, the banks supplying the remainder. There was a relaxation in taxation during the war; paper money was easily printed, and the people were opposed to heavy taxes.[411]

In 1862 bonds to the amount of $2,000,000 were issued for the benefit of the indigent. The governor was given unlimited authority to issue bonds and notes, receivable for taxes, to "repair the treasury," and $2,085,000 in bonds were issued under this permit. These bonds drew interest at 6 per cent, ran for twenty years, and sold at a premium of from 50 per cent to 100 per cent. Bonds were used both for civil and for military purposes, but chiefly for the support of the destitute. Treasury notes to the amount of $3,500,000 were issued, drawing interest at 5 per cent, and receivable for taxes. The Confederate Congress came to the aid of Alabama with a grant of $1,200,000 for the defence of Mobile.[412] In 1863 notes and bonds for $4,000,000 were issued for the benefit of indigent families of soldiers, and $1,500,000 for defence; $90,000 in bonds was paid for the steamer _Florida_, which was later turned over to the Confederate government.[413] In 1864 $7,000,000 was appropriated for the support of indigent families of soldiers, and an unlimited issue of bonds and notes was authorized.[414] In 1862 the Alabama legislature proposed that each state should guarantee the debt of the Confederate States in proportion to its representation in Congress. This measure was opposed by the other states and failed.[415] A year later a resolution of the legislature declared that the people of Alabama would cheerfully submit to any tax, not too oppressive in amount or unequal in operation, laid by the Confederate government for the purpose of reducing the volume of currency and appreciating its value. The assembly also signified its disapproval of the scheme put forth at the bankers' meeting at Augusta, Georgia--to issue Confederate bonds with interest payable in coin and to levy a heavy tax of $60,000,000 to be paid in coin or in coupons of the proposed new issue.[416]

The Alabama treasury had many Confederate notes received for taxes. Before April 1, 1864 (when such notes were to be taxed one-third of their face value), these could be exchanged at par for twenty-year, 6 per cent Confederate bonds. After that date the Confederate notes were fundable at 33-1/3 per cent of their face value only.[417] After June 14, 1864, the state treasury could exchange Confederate notes for 4 per cent non-taxable Confederate bonds, or one-half for 6 per cent bonds and one-half for new notes. The Alabama legislature of 1864 arranged for funding the notes according to the latter method.[418] The Alabama legislature of 1861 had made it lawful for debts contracted after that year to be payable in Confederate notes.[419] Later a meeting of the citizens of Mobile proposed to ostracize those who refused to accept Confederate notes. Cheap money caused a clamor for more, and the heads of the people were filled with _fiat_ money notions. The rise in prices stimulated more issues of notes. On February 9, 1861, $1,000,000 in state treasury notes was issued, and in 1862 there was a similar issue of $2,000,000 more. These state notes were at a premium in Confederate notes, which were discredited by the Confederate Funding Act of February 17, 1864. Confederate notes were eagerly offered for state notes, but the state stopped the exchange.[420] December 13, 1864, a law was passed providing for an unlimited issue of state notes redeemable in Confederate notes and receivable for taxes.

Private individuals often issued notes on their own account, and an enormous number was put into circulation. The legislature, by a law of December 9, 1862, prohibited the issue of "shinplaster" or other private money under penalty of $20 to $500 fine, and any person circulating such money was to be deemed the maker. It was not successful, however, in reducing the flood of private tokens; the credit of individuals was better than the credit of the government.

Executors, administrators, guardians, and trustees were authorized to make loans to the Confederacy and to purchase and receive for debts due them bonds and treasury notes of the Confederacy and of Alabama and the interest coupons of the same. One-tenth of the Confederate $15,000,000 loan of February 28, 1861, was subscribed in Alabama.[421] In December, 1863, the legislature laid a tax of 37-1/2 per cent on bonds of the state and of the Confederacy unless the bonds had been bought directly from the Confederate government or from the state.[422] This was to punish speculators. After October 7, 1864, the state treasury was directed to refuse Confederate notes issued before February 17, 1864 (the date of the Funding Act) in payment of taxes except at a discount of 33-1/3 per cent. Later, Confederate notes were taken for taxes at their full market value.[423]

Gold was shipped through the blockade at Mobile to pay the interest on the state bonded debt held in London. It has been charged that this money was borrowed from the Central, Commercial, and Eastern banks and was never repaid, recovery being denied on the ground that the state could not be sued.[424] But the banks received state and Confederate bonds under the new banking law in return for their coin. The exchange was willingly made, for otherwise the banks would have had to continue specie payments or forfeit their charters. And to continue specie payments meant immediate bankruptcy.[425] After the war, the state was forbidden to pay any debt incurred in aid of the war, nor could the bonds issued in aid of the war be redeemed. The banks suffered just as all others suffered, and it is difficult to see why the state should make good the losses of the banks in Confederate bonds and not make good the losses of private individuals. To do either would be contrary to the Fourteenth Amendment.

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
Disbursements, 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 assembly 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 passed, regulating and changing the fees and salaries of public officials. In October, 1884, for example, the salaries of the state officials, tax assessors 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 classes, it was never a burden upon the agricultural classes 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%
Hoarded 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 passed 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 classes and on those whose income was derived from government securities.

While the state taxes were felt chiefly by the wealthier agricultural classes 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 assumption 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, pawnbrokers, 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, molasses, 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 classes, 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 classes, 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 tithe 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 tithe 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 quantities 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 quantity 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 coöperation 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.