41,727 322-416,971,785 $40,874,964 Currency.... Total debt..... $280,405,675 $566,005,062 $285,599,877 Thus the debt apparently increased more in the last five months than in the previous sixteen months of the war. One cause was the rise in prices, which reacted upon the Government, requiring more money for the same purpose. This increase is however less than it appears; since, of the interest Treasury notes, $11,004,600 were still on hand. Also of the 8 per cent. bonds $8,000,000 were on hand. Of the real increase of these bonds outstanding, $7,000.000 were derived from the produce loan, and $17,422,250 from funded notes. There was a large increase of interest bearing Treasury notes; and this increase added to the amount of bonds funded, makes nearly 20 millions per month derived from that source. There remained, however, $290,149,692 paper money outstanding at the close of the year, and the estimates required the sum of $357,929,229 to carry on the Government to July, 1863. The disasters that must flow from a further issue of paper to that amount induced many of the States of the Confederacy to guarantee a war debt of the Confederate Government. The Secretary of the Treasury therefore proposed that; 1st, all the paper money issued prior to Dec. 1 should cease to be currency on the 1st of July, 1863, up to which time it may be funded in bonds; 2d, to impose a war tax on property that should yield $48,000,000 per annum to meet the whole interest on the public debt; 3d, that the States' guarantee should be accepted for $500,000,000, to be issued in a 6 per cent. stock. The interest on the bonds being payable in paper suffers virtual decline through the rise in the prices of commodities. It was argued, therefore, that although by requiring the funding of the notes, the price of the bonds would decline in the market, their value to the holders would rise by reason of the better currency in which they get their interest. By the same means the expenses of the Government would be reduced, and the ultimate aggregate of the debt be decreased. The war tax proposed upon property, it was estimated, would give $35,000,000, and an income tax of $28,000,000 would give 63 millions, or 60 millions net, which would leave 12 millions to apply to so much of the principal of the debt annually. The report of the Secretary of the Treasury, for the close of the year, gave the revenue and Total Expenses... Public debt paid... Balance.. The war tax collected was large, but includIn relation to ed a tax upon State bonds. which the Secretary remarks: "The very large cluded in the war tax of the last year, and the amount of money invested in this form was intax thereon was paid everywhere, except by lina. For the ensuing year the case would be those who raised the question in South Carodifferent. If the same tax were laid by Congress, it is probable that the holders of State bonds. would claim exemption under this decision, and Congress itself might be unwilling to reënact, in the same form, a law which had been declared unconstitutional by the coördinate branch of the Government, until that decision is reversed. The question is of such magnitude, and involves such great interests, that an appeal was taken. But this appeal cannot be decided until a Supreme Court shall be organized." the chairman: When the advance of the Federal armies into the Confederate States, both at the West and on the coast, commenced, the citizens were urged to burn all the cotton and tobacco. In Richmond, on the 26th of February, a convention of Representatives from a number of the States was held. Its object was thus stated by bacco vice-regal, it was proposed to ascertain "As cotton was king and tohow far they could be made to subserve the cause of independence." Several propositions were made, viz., "that the crops should be voluntarily destroyed,-that the Government should purchase them and then destroy them if necesThe result of all the proceedings on sary. the subject was the passage of a law by Congress ordering all cotton to be destroyed "when it was about to fall into the hands of the enemy." The amount of cotton raised during the year was about one fourth of that of the previous year. More land was devoted to raising crops of grain, and the demands of the war reduced the number of cultivators. the Foreign Office the following estimate of the stock on hand at the close of the year: The British consul at Savannah returned to According to reports made to the Comptroller General of this State by the tax collectors, the amount of land planted in cotton this year in Georgia is about 260,000 acres, yielding in round numbers 60,000 bales of cotton of 500 pounds each; ordinarily the production is 700,000 bales, requiring an area of about 3,000,000 acres. I am, of course, unable to report as accurately respecting the crops of other States, but the best information at my command strongly induces the belief that the entire crop gathered this year did not exceed 1,000,000 bales, proving the correctness of the approximate estimate transmitted to your lordship in my despatch, No. 16, of the 10th of May last. The crop of 1861 was estimated at 4,500,000 bales. Deducting from the crops of 1861 and 1862 the quantity of cotton which has run the blockade, the amount destroyed to prevent capture by the Federalists, and the quantity used for home consumption, which, since the commencement of the war, has enormously increased, being now fully 500,000 bales per annum, it will leave in the South not more than 3,500,000 bales. The urgent necessity for the cultivation of breadstuffs since the Federal occupation of Kentucky and the best grain growing regions of Virginia, Tennessee and North Carolina, and the consequent strong popular opposition to the planting of cotton, together with other causes of hardly less importance, such as the entire want of bagging and rope necessary to put the cotton into merchantable condition, will tend hereafter to prevent any increase in the stock, possibly to diminish it; while, should the Federals succeed in making farther advances into the interior of the cotton growing States, the cultivation of that plant will be entirely abandoned, and the negroes removed to the mountainous districts, where breadstuffs alone can be raised. E. MOLYNEUX. The manufacturing industry of these States became more extensive than ever before, and in some branches more highly developed. The necessities of the Government and people, and the advancing prices, furnished a most powerful stimulant. Munitions of war and manufactures of cotton constituted the most important branches of this industry. The high postage imposed by the Government greatly reduced the correspondence of the people, who were forbidden to transmit letters in any other manner than through the mails. The advance in the rates was made in order to enable the department to defray its expenses with its receipts. The effect, however, was to reduce the receipts and increase the demands of the department. The Govern ment now had the choice either to reduce the Congress shall have power to "establish post offices and post routes; but the expenses of the Post Office Department, after the 1st day of March, in the year of our Lord eighteenth hundred and sixty-three, shall be paid out of its own revenues.' " This was done by proclamations of the President, of which the following is the form stating that it is done by the authority of Congress: By virtue of the power vested in me by law to de clare the suspension of the privilege of the writ of habeas corpus in cities threatened with invasion, 1, Jefferson Davis, President of the Confederate States of America, do proclaim that martial law is hereby extended over the City of Richmond and the adjoining and surrounding country to the distance of ten miles, and I do proclaim the suspension of all civil jurisdiction, with the exception of that of the Mayor of the City, and the suspension of the privilege of the writ f habeas corpus within the said city and surrounding country to the distance aforesaid. The subject of conciliating the northwestern States by the free navigation of the Mississippi river and the opening of the markets of the South to the inhabitants of those States upon certain terms and conditions, was the first proposition suggested toward a settlement of the difficulties. This was considered in Congress. (See CONGRESS, CONFEDERATE.) The relations of the Confederate States to foreign nations during the year are seen from the speeches and letters of their agents. Mr. 17th of March, made an address to the citizens, Yancey, on his arrival at New Orleans on the which is thus stated: He remarked, on rising, that it was within ten daya of a year since he left the country as the represesta tive of the Confederate States to endeavor to procum the recognition of that independence for which is countrymen were gallantly contending. He shoud undoubtedly surprise his auditors when he told them depend for the accomplishment of the end for wh.ch that they had no friends in Europe; that they must they are striving upon themselves alone. And what he said of European feeling with regard to this Coafederacy was equally true of its feeling toward the North, whose people, whose Government, and whe press, the statements and writings of whose publ men and literary writers they believed to be altogether mendacious. The sentiment of Europe was antela very, and that portion of public opinion which formed and was represented by the Government of England was abolition. Congress took into consideration the meaning of the word "expenses," and thus avoiding the constitutional question, recommended a loan to the department, for payment of the interested in England with regard to the people of the and principal of which its revenues should be pledged. The postage stamps were imported from England; so stringent was the blockade that some of the colors required in their manufacture could not be obtained within the Confederacy. At the same time it is very well understood and be lieved that the pretexts upon which this war wa inaugurated and is carried on against us were utsy false. They would never recognize our independence until our conquering swords hung dripping over the prostrate heads of the North. Their opinion of the character of the people of these States, and of the cause in which we are engaged, was derived altogether from Northern sources. They never see the journals and the periodicals of the South, and all the accounts with regard to us come to them filtered through to se of the North. They believed that we are a brave and determined people, and that we are resolved upon o taining our independence by the most unyiering devotion to the cause in which we are contenan pled by the war, and so would give aid to neither Be But they would like to see the two Confederacies crip alluded to the erroneous and hostile opinions entertas Martial law was proclaimed at Richmond, Norfolk, and other places during the year. States, which had been sedulously inculcated by the North, by whom we were habitually represented as cruel, lawless, and oppressive; that the owner had the liberty to treat his slaves without reference to the laws of society or nature, and that the slaves were bred as the English breed their Durham cattle, &e As to the blockade, he said that the nations of ExIn his own private opinion, he believed that that rope would never raise it until it suited their interest. necessity would occur by a very early day. He said it was an error to say that "Cotton is king." It is not. It is a great and influential power in commerce, but not its dictator. He alluded to the dependence which British statesmen placed upon the probability of obtaining cotton from other sources than America, and showed that this, to any practical extent or purpose, was impossible, and that the idea was a fallacy. He thought, he said, that the blockade was a blessing to the Confederate States, for it was teaching-nay, compelling us to depend upon ourselves and to do that for ourselves for which we have hitherto been depending upon others, and they our deadliest foes. He then counselled a firm, united, and generous support of the Government which has just been inaugurated. The chosen and the choosers were both in the same boat. The storm was raging, the wind was howling, and the waves were beating upon our bark. We had placed them at the helm. They might commit errors, but all history teaches that when there is mutiny in the crew the bark must go down. He concluded by expressing the strongest confidence in the final success of the cause in which we are engaged, and at the close was greeted with the most enthusiastic cheers. At this period of the year Mr. Mason was in London, Mr. Slidell in Paris, Mr. Rost in Spain, and Mr. Mann in Belgium, as representatives of the Confederate States. They continued to occupy these positions during the year, but were unsuccessful in obtaining a recognition of the Confederacy, or the adoption of any act which might change the existing relations. The position of the Confederate Government at the close of the year was in some respects much stronger than at its commencement. The population of the States was brought to a more united action to sustain the cause. The determination manifested by the authorities of the States to sustain the Government, without agitating any vexatious questions as to the constitutionality of its measures, destroyed all opportunities for dissatisfied citizens to organize opposition. The declaration of the Federal Government that slavery was the cause of the war and that, to put an end to it, the cause must be utterly removed, placed the two Governments on the most extreme grounds of disagreement. President Davis appealed to the people in his Message to resist unitedly this attempt to destroy their domestic institutions, and reminded them that the declarations of the States as to the cause of secession were now shown to be true by the acts of their enemies. The measures of the Federal Government were thus used to produce union and determination of purpose in the Southern mind to continue the struggle to the very last extremity. The address of VicePresident Stephens to the citizens of Crawfordsville, Ga., in Nov. 1862, presents an instance of the manner in which appeals were then made to the people: If asked on our side, what is all this for? the reply from every breast is, that it is for home, for firesides, for our altars, for our birthrights, for property, for honor, for life-in a word, for everything for which freemen should live, and for which all deserving to be freemen should be willing, if need be, to die. In what ever trials and sacrifices this war may bring upon us, when the thought of" what is all this for," comes to the mind, recollect that it is, on our part, for everything most dear and sacred, and whatever reverses may await us in a struggle for such objects, let the watchword of the last survivors be, "Never give it up." Let the world know, and history record the fact if such should be our unhappy fate, that though our country may be invaded, our land laid waste, our cities sacked, our property destroyed, the people of the South could die in defence of their rights, but they could never be conquered. Exhaustion, however, was gradually doing its work. The territory of the Confedby the occupation of their enemies, who never erate States was constantly growing smaller gave up an important place, where they once got a foothold. The number of able-bodied men was becoming fatally reduced, and when the conscription acts were exhausted, none would be found for recruits but old men and boys. The depreciation of the currency was approaching that verge beyond which it would be worthless. Well could the Vice-President exclaim, with the indomitable heroism of the Red Man at the stake, "Let the watchword of the last survivors be, Never give it up." CONGREGATIONALISTS. During the year 1862, the number of Congregationalists in the United States has remained nearly stationary. The "Congregational Quarterly," which gives every year in its January number a very careful compilation of the statistics of the denomination, reported for January, 1862, a membership of 259,119, and for January, 1863, 261,474; increase during the year 2,355. The number of churches, in January, 1863, was 2,884; of ministers 2,643 (of whom 904 are pastors, 861 stated supplies, 215 not specified, and 663 not in service). Sabbath school scholars, 255,257. The Congregationalist denomination in the United States is almost entirely confined to the Free States. Not one State association has yet been organized in any of the slaveholding States. A few churches, however, have been organized in Missouri, and a solitary church existed in Charleston, South Carolina. The church edifice of the Charleston congregation (the Circular Church) was destroyed by fire in the great conflagration at the close of 1861. Its pastor, Mr. Rice, was formerly settled in Connecticut, and at the time of the secession of the State was still a member of the Suffolk (Mass.) South Association. The great majority of the Congregational churches entertain the most thorough antislavery principles, and at the meetings of their State Associations strong resolutions were passed in favor of the emancipation measures of President Lincoln, declaring slavery to be the chief cause of the secession, and expressing the hope that the war would result in its extermination. The Congregationalists of the United States, although far from being one of the most numer ous American denominations, exceed most of the other denominations in ably conducted and influential theological periodicals. The "Independent," of New York, has the largest circulation of any religious newspaper of the world, while among the theological reviews the "Bibliotheca Sacra" and the "New Englander" occupy a prominent place. During the year 1862, however, the Congregational press has been reduced-not less than four papers (the Lewiston "Maine Evangelist," Concord, N. H., "Congregational Journal," Chicago "Congregational Herald," and Oberlin, O., "Evangelist") having been suspended. There remained at the beginning of the year 1863, six weeklies, among which, next to the "Independent," the "Congregationalist," of Boston, had the largest circulation, four monthlies, and three quarterlies. In California the Congregationalists are united with the Old and New School Presbyterians in the issue of a weekly paper. In Great Britain, the “Congregational YearBook" for 1860, reports 1,840 churches in England, 719 in Wales, 101 in Scotland, 27 in Ireland; total in Great Britain 2,678. Of these not more than 759 made a report of their membership. The aggregate amounted to 96,754, being an average of more than 127 members to each church. The number of churches in the British colonies, in 1862, was as follows: The Canadas 87, other British North American provinces 16, British Columbia 1, Australasia 125, South Africa 9, Demerara 3-total 241. In connection with the London Missionary Society, which is chiefly under the control of the Congregationalists, there were 203 churches. The grand total of all the Congregational churches in the British dominions, in 1862, was 3,131. This number does not, however, include the village chapels, out stations, school houses, and other places in connection with the churches. The number of these is not reported, but is estimated at twice the number of the churches themselves, reaching a total of at least 10,000 places where the preaching is supplied by Congregationalist ministers and helpers. The Congregationalists of England, in union with the other dissenting denominations, celebrated in 1862, with great solemnity, the bicentenary of the ejectment of the two thousand non-conforming ministers from the English State Church in 1662. Two separate societies were formed with a view to encourage and direct the movements of the year-the "Bicentenary Committee," in connection with the Congregational Union, and the "United Bartholomew Committee," composed of persons of different denominations. The Bicentenary Committee of the Congregational Union collected a Memorial Fund, with a view to extend and perpetuate the remembrance of the day. This fund, of some £120,000 or more, has been raised for various objects, as the erection of chapels and schools, the liquidation of debts on chapels, the augmentation of the various funds connected with the Pastors' Retiring Fund, the British Missions, and the erection of a Memorial Hall. The London Missionary Society had for the year 1861-2, inclusive of some special contributions for India, China, etc., an income of £79,576. In connection with it were 170 Eu ropean missionaries, 40 missionary students, 800 native agents, catechists, etc., 203 churches, 23,192 communicants, 715 schools, 36,361 scholars. This summary does not include the native Christians of Madagascar, among whom the veteran missionary Ellis, together with other missionaries of the London Society, resumed during the past year their labors. In France, the Evangelican Church of Lyons, which sustains six places of worship in the city of Lyons, and two in the country, is a Congregational body. Several other Congregational churches are united with Free Presbyterian churches into the "Union of Evangelical Churches in France," which was formed in 1849, and had in 1862 about 30 places of worship, and 2,000 members. In Italy, the Free Evangelical churches hold independent principles. In Switzerland, the Free churches of Vaud, now 42 in number, are Congregationalist; and small Independent churches have also been formed in twelve places in other cantons. CONGRESS, CONFEDERATE. The sessions of the Provisional Congress, which commenced on the 18th of November, 1861, were continued until the 15th of February, 1862, when its term of existence expired. These sessions were almost entirely held in secret, and no reports have been made public. It was a body elected by the State Conventions and Legislatures, and more truly and unanimously a representative of them than of the people. It was created for the great purpose of combining the States which had resolved to withdraw from the Federal Union, and to prepare the way for the organization of a separate and independent Government. These duties were boldly and resolutely performed. On the 18th of February the Government commenced its existence under the "PermaConfederate Congress assembled at Richmond, nent Constitution." On that day at noon the and the Vice-President elect, Alexander H. Stephens, of Georgia, took the chair in the Senate, and under the authority of the Constitution formally opened the session of that body. He caused to be read the last clause of the Constitution and the act of the Provisional Congress putting in operation the permanent Government of the Confederate States, and the act supplemental to the same. All the slaveholding States were represented, except Delaware and Maryland.* * The following is a list of the members of both houses: SENATE. Alabama.-Clement C. Clay, Wm. L. Yancey. Louisiana.-Thos. J. Semmes, Edward Sparrow. Nineteen Senators being present; the oath to support the Constitution was then administered. R. M. T. Hunter, of Virginia, was chosen president pro tem. and the Vice-President retired. James H. Nash, of South Carolina, was chosen secretary, and James Page, of North Carolina, doorkeeper. The House of Representatives assembled at the same hour, and were called to order by Howell Cobb, president of the late Provisional Congress. The act of that Congress was then read, whereby it was made his duty to preside at the organization of the House of Representatives of the Permanent Congress. A quorum being present, the following oath was administered to the members by States: "You, and each of you, do solemnly swear, that you will support the Constitution of the Confederate States of America. So help you God." Mr. Thomas S. Bocock, of Virginia, being the only person nominated, was then elected Speaker. He was the candidate for the same position at the first session of the Thirty-sixth Federal Congress. Mr. Bocock, on taking the chair, addressed the House as follows: GENTLEMEN OF THE HOUSE OF REPRESENTATIVES: I return to you my sincere thanks for the honor you have done me in selecting me to preside over your deliberations during this the first Congress under our permanent constitution. And I desire to say that it will be my one great aim, in discharging the duties of this office, so to conduct myself as to show to you and to the world that your confidence has not been altogether misapplied. I may be permitted to say that I have a HOUSE OF REPRESENTATIVES. Alabama.-E. L. Dargan, W. P. Chilton, James E. Pugh, Jabez M. L. Curry, Wm. R. Smith, John P. Rawles, Thomas J. Foster, David Clopton, L. F. Lyon. Arkansas-Felix J. Batson, G. D. Royster, A. H. Garland, T. B. Hanley. Florida--James B. Dorkins, R. B. Hilton. North Carolina.--Wm. H. N. Smith, Robert Bridges, Owen R. Keenan, J. G. McDowell, Thos. S. Ashe, Archibald Arrington, Robert McLean, William Lander, R. C. Gaither, A. S. Davidson. South Carolina.-Wm. W. Boyce, Wm. P. Miles, M. L. Bonham, John McQueen, L. M. Adger, James Farran. Georgia.-A. H. Keenan, Hines Holt, A. R. Wright, Julien Hartridge, L. J. Gartrell, Wm. W. Clark, Robert P. Trippe, D. W. Lewis, J. C. Monnalym, Hardy Strickland. Kentucky-Willis B. Machen, John W. Crockett, H. E. Read, Geo. W. Ewing, Jas. S. Crisman, Geo. P. Hodges, H. W. Bruce, S. S. Scott, E. M. Bruce, R. J. Breckinridge, Jr., John M. Elliott. Louisiana.-Duncan F. Kenner, Charles Villiers, John Perkins, Jr., Charles M. Conrad, Henry Marshall, Lucien Dupose. Mississippi-John J. McRae, J. W. Clapp, Reuben Davis, Israel Welsh, H. C. Chambers, Otho R. Singleton, E. Barks dale. Teras-John A. Wilcox, P. W. Gregg, C. C. Herbert, W. B. Wright, M. P. Graham, S. B. F. Sexton. Lyons, Virginia.-John R. Chambliss, M. R. H. Garnett, James Collier, Thomas S. Bocock, John Goode, Jr., James P. Holcomb, D. C. Dejarnette, William Smith, A. R. Boteler, John B. Baldwin, Waller R. Staples, Walter Presto Vacancy vice A. G. Jenkins, Robert Johnson, Charles W. Russell. Missouri, under the apportionment, is entitled to thirteen members. The State has not been districted, and the above members-to the Provaional Congress-hold over. 1 Taken the oath of allegiance to the United States, and not present. VOL IL-17 firm determination, so far as I may be able, to maintain the dignity and preserve the decorum of this body; to administer its rules with firmness and courtesy, and to conduct its business with the strictest impartiality. If such a determination, united with a sincere desire to see our legislation take such shape as will best tend to secure the independence, maintain the honor, and advance the welfare of this entire Confedmight expect to succeed. But other qualifications are eracy-if this could command success-I am sure I requisite, about which it is not for me to promise. If in anything I may fall short, I trust that the same kind partiality which has called me to this position will throw the mantle of charity over my defects, and will give me, in every time of trial, that kind cooperation and generous support which my deficiencies may require. The unanimity with which you have made this election is a happy augury of the spirit with which for resentments, no time for jealousies or heartburnyour proceedings will be governed. This is no time ings. Influenced by a great common purpose, sharing together the same rich hope, and united by a common destiny, let us hush every murmur of discontent, and know no man save as a co-laborer in the same great banish every feeling of personal grief. Here let us cause, sustaining those whom circumstances may designate to go forward; seeking nothing for the sake merely of personal gratification, but willing rather to yield everything for the public good-"in honor preferring one another." That some of you, influenced by momentary impulse, should grow restive under the enforcement of those rules which you may make for your own government would be a matter neither of surprise nor of complaint. But he will prove himself either a weak or a bad man who, on reflection, fails to call back his wayward spirit, and subject it to necessary restraint. Submission to constituted authority is the primary necessity in all communities, and self-control is the chief lesson of individual life. In the light of passing events we can measure the height and the depth of the excellence intended to be conveyed, when it is said, "Better is he who ruleth his own spirit than he who taketh a city." The gaze of the world is fixed upon us. Nations look on, curious to see how this new system of government will move off, and what manner of men have been chosen to guide its earliest movements. It is, indeed, a new system; for though coinciding in many particulars with that under which we lived so long, it yet differs from it in many essential particulars. When the Constitution of 1787 was put in operation the War of the Revolution had been successfully closed. Peace prevailed throughout the whole land, and hallowed all its borders. The industrial operations of the country, long held back, now bounded forward and expanded with all the vigor and rankness of tropical vegetation beneath the influence of a midsummer sun. The trial which that constitution had to encounter in its earliest, as well as in its more matured existence, was simply one engendered by a conflict of these interests. The question was whether it could give protection to all these interests without becoming the partisan of one and the oppressor of another; or, in fact, whether it had the sustaining power to preserve its integrity against the influence of interest wielded by ambition. We have seen the result. The case with our constitution is very different. It is put into operation in time of war, and its first movements are disturbed by the shock of battle. Its trial is one created by the urgencies of this contest. The question to be decided is, whether, without injury to its own integrity, it can supply the machinery and afford the means requisite to conduct this war to that successful conclusion which the people, in their heart of hearts, have resolved on, and which, I trust, has been decreed in that higher court, from whose decisions there is no appeal. The solution of this question is in the bosom of the future. But our system can never perish out like that to which I have alluded. When ambition and interest seized upon that, and destroyed its integrity, they were not allowed to appropriate the rule altogether to themselves. Fanaticism |