THE EXPENDITURE OF THE CONFEDERATE STATES.

Hawke's Bay Times, Volume II, Issue 83, 22 January 1863, Page 4

THE EXPENDITURE OF THE CONFEDERATE STATES.

[From the Economist.'] Nothing even in recent American history, is more remarkable Ilian the almost complete ignorance which prevails in this country with respect to the financial condition of thcConfederate States. We know they must have obtained much money, for such a war as they have maintained cannot be supported without much money. But exactly how great their resources have been we cannot say, and whence these resources have been derived wc are wholly ignorant. Some information has now, however, been received by the professed friends of the South in this country, which, if its completeness should be confimed, and its accuracy established, will go far to remove our singular want of knowledge. It is said that the total expenditure of the Confederate States, up to the Ist of August last, was as follows; War department £00,021,195 Navy department 3,105,015 Civil and miscellaneous 3,078,850 £76,705,060 If this account should be confirmed, and we are assured that it is correct, the South may bo congratulated on having made a great war, not only very successfully, hut very cheaply. We will not compare this small sum with the enormous figures of Mr. Chase but it is worth while to remember that Sir G-, C. Lewis estimated the cost of the Crimean war to this country at 77,588,000 ; that the Crimean war could not he compared in magnitude to the tremendous struggle in which the Confederate States are engaged ; that such a war as theirs would have cost us much more than such a war as ours cost us ; that nevertheless, £76,708,000 covers their whole expenditure, military as well as civil, while £77.588,000 was requisite for only the military part of onrs. The mode in which this considerable though not excessive sum has been obtained, is, wo arc informed, as follows : TAXES. Customs, prior to repeal of the tariff £ 335,393 War tax 2,372,759 LOANS. Loan Act of February 29, 1861 3,500,000 Loan Act of August 19,1861 5,743,11-1 Call deposits 8,753,516 Balance of loan from banka 2,159,312 BY INCONVERTIBLE NOTES. Treasury Notes Act, March 9,1861 ... 471,600 Treasury Notes Aet, May 16,1861... 1,017,857 Treasury Notes Act, August 19,1861... 39,145,076 Treasury Notes Act, April 17, 1562... 0,319,976 Small notes 197,100 Miscellaneous 160,779 £72,806,812 leaving a deficit, on the Ist of .August, of nearly £4,000. As in the North, so in the South, this great struggle has been carried on a little by taxes, somewhat by loans, and mosdy by an inconvertible currency. For the South no other course was possible, It is not possible to levy very heavy taxes in a poor country with a sparse population during a revolution which has suspended its main industry. It is not possible to raise regular loans in such a country to an enormous extent, for the floating capital that is requisite docs not exist. It is not possible for an inchoate state like the South, of which the very existence was, at first, undecided, to borrow much abroad. The only applicable

resource is the currency ; by substituting its own. paper for the coin in circulation a poor Government can at an emergency obtain a great sum. The South wore compelled to adopt at once this last of financial expedients. The North, from a reluctance to tax in the rulers, an apathy in the multitude, and an ignorant contempt of economical laws in both, adopted that extreme expedient without a necessity, and when many better resources were open to it.

• Sir. Chase has just stated his expenditure for the three months ending the 30th of June at £33,800,000, or nearly £100,000,000 'p annum.