Page:Confederate Military History - 1899 - Volume 1.djvu/437

Rh pretension is abandoned the sword will drop from our hands and we shall be ready to enter into treaties of amity and commerce that cannot but be mutually beneficial.&quot;

The Confederate Congress proceeded earnestly to do the important work for which it was assembled. Acts were passed recognizing the state of war existing with the United States, authorizing the issue of letters of marque by the President and authorizing him to accept the services of volunteers in the Confederate army without regard to the place of enlistment. Arkansas was admitted into the Confederacy, and Virginia being also recognized as one of the Confederate States, the members elect, Mr. J. W. Bockenbrough and Mr. Waller R. Staples, took their seats. Mr. T. J. Clingman, of North Carolina, present as a commissioner from that State, was invited to attend all sessions of Congress and participate in its deliberations. The appointment by the President of judges and marshals in Confederate courts were confirmed. On the 1st of April a bill was passed which gave authority for the issue of fifty millions of. dollars in bonds, running twenty years at eight per cent interest or in lieu of these bonds twenty millions of treasury notes in small denominations without interest. The &quot;produce loan&quot; was devised upon the idea that cotton could be made a basis of security, the Confederate government proposing by this measure to take a loan in produce from the planters and issuing its bonds in payment. In response to the plan, conventions of planters were held in various States, committees to take subscriptions were appointed and within a few months the entire amount was subscribed. The device brought very little money into the Confederate treasury, but proved to be greatly useful in furnishing supplies for the army. President Davis remarked concerning its utility: &quot; Scarcely an article required for the consumption of our army is provided otherwise than by subscription to the produce loan so happily devised by Congress.&quot;