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                  <text>Trading with the Enemy: Cotton Permits, Smuggling, and Speculation in the Civil War</text>
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                  <text>Throughout the Civil War, President Lincoln and his administration were vexed by the issue of cotton. An essential raw material for industrial enterprise, cotton (and its sudden scarcity) threatened the Union war effort. The letters, newspaper articles, and government records in this collection reveal an administration grappling with the simultaneous need to starve the Confederacy of resources and increase the available supply of cotton. The ultimate solution, a "cotton permit" system, was vulnerable to cronyism and abuse, leading Congress to declare that "it is believed to have led to the prolongation of the war, and to have cost the country thousands of lives and millions upon million in treasure."</text>
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              <text>"General Grant's Order Expelling the Jews from Paducah, Ky. General Order - No. 11." Print. &lt;em&gt;New York Herald&lt;/em&gt;. January 5, 1863, News article. (Accessed from NewsBank December 11, 2016).</text>
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                <text>Article about Ulysses S. Grant's Order expelling Jews from the Department of Tennessee, Grant's military district. In the order, Grant accused Jews of "violating every regulation of trade established by the Treasury Department," including the trade of cotton.</text>
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                  <text>Throughout the Civil War, President Lincoln and his administration were vexed by the issue of cotton. An essential raw material for industrial enterprise, cotton (and its sudden scarcity) threatened the Union war effort. The letters, newspaper articles, and government records in this collection reveal an administration grappling with the simultaneous need to starve the Confederacy of resources and increase the available supply of cotton. The ultimate solution, a "cotton permit" system, was vulnerable to cronyism and abuse, leading Congress to declare that "it is believed to have led to the prolongation of the war, and to have cost the country thousands of lives and millions upon million in treasure."</text>
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              <text>From Elihu B. Washburne to Abraham Lincoln, &#13;
Mr. Lincoln:&#13;
I see a report that you have revoked Grants' order touching the Jews.--I hope not. I consider it the wisest order yet made by a Military Command, and from my own personal observation, I believe it was necessary. As the friend of that distinguished Soldier, Genl. Grant, I want to be heard before the final order of revocation goes out, if it be contemplated to issue such an order. There are two sides to his question.&#13;
Truly &amp;c.&#13;
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                <text>Letter from Elihu B. Washburne to Abraham Lincoln taking issue with his decision to revoke Ulysses S. Grant's General Orders No. 11, expelling Jews from his military department. </text>
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              <text>Excerpt: I left Brussels yesterday afternoon for a day’s sojourn here and on arriving went to M. Thouvenel’s reception, where I spent the evening . The conversation I had there I will give you in brief. He received me with great cordiality and stopping me before I proceeded into the reception room commenced upon our affairs. After speaking of our victories, his wishes, he said, was for the success of our cause, but above all for the early termination, one way or another, of the war, which was bearing heavily upon them in France. They were nearly out of cotton, he continued and cotton they must have.&#13;
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              <text>Sanford, William. &lt;em&gt;Letter to William Seward from Henry S. Sanford, April 10, 1862. &lt;/em&gt;Letter. William Henry Seward Papers, 1730-1917. From Department of Rare Books, Special Collections, and Preservation, River Campus Libraries, University of Rochester. &lt;span class="m_7021379446878022507gmail_msg"&gt;Letter cited in Chapter 9 of Empire of Cotton: A Global History by Sven Beckert. &lt;/span&gt;&lt;span class="m_7021379446878022507gmail_msg"&gt;New York: Vintage Books, 2015. &lt;/span&gt;</text>
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                <text>Sanford, the Union's  minister to Belgium, describes a reception he attended held by the French minister of foreign affairs, Edouard Thouvenel, in Paris. Thouvenel stopped Sanford to tell him that he hoped the war would end soon to reopen the free flow of cotton from the U.S. to France. “We are nearly out of cotton, and cotton we must have," Thouvenel said, according to Sanford. </text>
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              <text>February 3. 05&#13;
&#13;
My dear Sir&#13;
&#13;
Mr Penniston of N.O. will call with an order in my hand writing signed by the President in relation to cotton. I have a copy but cannot find it. Will you do me the favor to have a copy made and send me&#13;
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Yours [illegible]&#13;
HA Risley&#13;
&#13;
Mr. Nicolay&#13;
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              <text>My Dear Sir&#13;
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I have confered with Mr Peniston in relation to the action you have so kindly taken in his case, and the Permit you have given him to obtain the cotton contracted for-- The permit meets that case fully, but does not meet the case of the cotton owned and paid for-- If you will allow him to explain the matter to you, I am sure you will see it is as I state-- May I not ask that you will see him, and also that you will give your permit to him to get the cotton he has paid for-- I will regard it as a favor to me&#13;
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Yours faithfully H Hamlin.</text>
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                  <text>Throughout the Civil War, President Lincoln and his administration were vexed by the issue of cotton. An essential raw material for industrial enterprise, cotton (and its sudden scarcity) threatened the Union war effort. The letters, newspaper articles, and government records in this collection reveal an administration grappling with the simultaneous need to starve the Confederacy of resources and increase the available supply of cotton. The ultimate solution, a "cotton permit" system, was vulnerable to cronyism and abuse, leading Congress to declare that "it is believed to have led to the prolongation of the war, and to have cost the country thousands of lives and millions upon million in treasure."</text>
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              <text>Mr President,&#13;
&#13;
I beg leave respectfully to represent that I am the owner of a large amount of cotton located in Western Louisiana &amp; Southern Mississippi acquired long since in payment of debts &amp; by purchase, as I can show by the proper documents, and as a citizen of the United States loyal to the Govt, I ask, that I be allowed the privilege of bringing my property under my control and disposing of it in such manner as shall be most advantageous to me, after payment of the Internal Rev and other taxes fixed by law.&#13;
&#13;
I respectfully request that I be exempted from the 25% tax, inasmuch as this cotton was and has been my property long before the passage of the act that imposed that tax and circumstances beyond my Control have until this time prevented me from bringing it to market.&#13;
&#13;
This cotton is the produce of very many plantations &amp; in order to prevent my meeting with opposition from the people and to secure their friendly co-operation, I ask that I be allowed to take outside the lines of military occupation, plantation supplies to the extent of 33% of the value of the Cotton brought in by me.&#13;
&#13;
The tide of trade; now flows from Western La, through to Texas, into Mexico and immense amount of supplies of every description and munitions of war are obtained in exchange of Cotton. Allow me Mr President to ask, if it would not be good policy to induce that cotton to go to New Orleans?&#13;
&#13;
Should you Mr President, see fit to grant my request, I respectfully suggest, that I be provided by you, with a document stating your intentions and granting me permission to proceed with one or more small steamboats &amp; barges, beyond the lines of Military Occupation, with the above stated amount of plantation supplies, up Red River and its tributaries, up Pearl River and Pascagoula River, land at or near Mouths of Pearl &amp; Pascagoula Rivers and on the banks of the Missi between Port Hudson &amp; Natchez and continue said voyages until the stated amount of Cotton shall have been brought to New Orleans, and without interference from any Military, Naval or civil officer of the U S. Govt.&#13;
&#13;
I leave the matter in your Excellency's hands, satisfied that your wisdom and practical sagacity will find means to enable a citizen of the United States to get possession of his property liable every day to destruction or seizure for the purpose of sending it to Mexico.&#13;
&#13;
I am Mr President&#13;
&#13;
Very respectfully Your obedt Servt&#13;
&#13;
Fergus Peniston&#13;
&#13;
Washington Dec 28th 1864</text>
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                  <text>Throughout the Civil War, President Lincoln and his administration were vexed by the issue of cotton. An essential raw material for industrial enterprise, cotton (and its sudden scarcity) threatened the Union war effort. The letters, newspaper articles, and government records in this collection reveal an administration grappling with the simultaneous need to starve the Confederacy of resources and increase the available supply of cotton. The ultimate solution, a "cotton permit" system, was vulnerable to cronyism and abuse, leading Congress to declare that "it is believed to have led to the prolongation of the war, and to have cost the country thousands of lives and millions upon million in treasure."</text>
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              <text>By the President of the United States of America&#13;
A Proclamation&#13;
Whereas, in pursuance of the act of Congress approved July 13, 1861, I did, by proclamation dated August 16, 1861, declare that the inhabitants of the States of Georgia, South Carolina, Virginia, North Carolina, Tennessee, Alabama, Louisiana, Texas, Arkansas, Mississippi, and Florida (except the inhabitants of that part of Virginia lying west of the Alleghany Mountains and of such other parts of that State and the other States hereinbefore named as might maintain a legal adhesion to the Union and the Constitution or might be from time to time occupied and controlled by forces of the United States engaged in the dispersion of said insurgents) were in a state of insurrection against the United States, and that all commercial intercourse between the same and the inhabitants thereof, with the exceptions aforesaid, and the citizens of other States and other parts of the United States was unlawful and would remain unlawful until such insurrection should cease or be suppressed, and that all goods and chattels, wares and merchandise, coming from any of said States, with the exceptions aforesaid, into other parts of the United States without the license and permission of the President, through the Secretary of the Treasury, or proceeding to any of said States, with the exceptions aforesaid, by land or water, together with the vessel or vehicle conveying the same to or from said States, with the exceptions aforesaid, would be forfeited to the United States; and&#13;
Whereas experience has shown that the exceptions made in and by said proclamation embarrass the due enforcement of said act of July 13, 1861, and the proper regulation of the commercial intercourse authorized by said act with the loyal citizens of said States:&#13;
Now, therefore, I, Abraham Lincoln, President of the United States, do hereby revoke the said exceptions, and declare that the inhabitants of the States of Georgia, South Carolina, North Carolina, Tennessee, Alabama, Louisiana, Texas, Arkansas, Mississippi, Florida, and Virginia (except the forty-eight counties of Virginia designated as West Virginia, and except also the ports of New Orleans, Key West, Port Royal, and Beaufort, in North Carolina) are in a state of insurrection against the United States, and that all commercial intercourse not licensed and conducted as provided in said act between the said States and the inhabitants thereof, with the exceptions aforesaid, and the citizens of other States and other parts of the United States is unlawful and will remain unlawful until such insurrection shall cease or has been suppressed and notice thereof has been duly given by proclamation; and all cotton, tobacco, and other products, and all other goods and chattels, wares and merchandise, coming from any of said States, with the exceptions aforesaid, into other parts of the United States, or proceeding to any of said States, with the exceptions aforesaid, without the license and permission of the President, through the Secretary of the Treasury, will, together with the vessel or vehicle conveying the same, be forfeited to the United States.&#13;
In witness whereof I have hereunto set my hand and caused the seal of the United States to be affixed.&#13;
Done at the city of Washington, this 2d day of April, A. D. 1863, and of the Independence of the United States of America the eighty-seventh.&#13;
ABRAHAM LINCOLN.&#13;
By the President:&#13;
WILLIAM H. SEWARD, Secretary of State.&#13;
&#13;
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              <text>"Presidential proclamation suspending commercial intercourse with certain States in rebellion, April 2, 1863." Presidential Proclamation 98.” &lt;em&gt;Presidential Proclamations, 1789-1936&lt;/em&gt;. National Archives Microfilm Publication T1223, Roll 1, General Records of the United States Government, Record Group 11: National Archives Building, Washington, DC.</text>
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                  <text>Throughout the Civil War, President Lincoln and his administration were vexed by the issue of cotton. An essential raw material for industrial enterprise, cotton (and its sudden scarcity) threatened the Union war effort. The letters, newspaper articles, and government records in this collection reveal an administration grappling with the simultaneous need to starve the Confederacy of resources and increase the available supply of cotton. The ultimate solution, a "cotton permit" system, was vulnerable to cronyism and abuse, leading Congress to declare that "it is believed to have led to the prolongation of the war, and to have cost the country thousands of lives and millions upon million in treasure."</text>
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              <text>Mr President.&#13;
&#13;
I beg leave respectfully to represent that I am a loyal citizen of the State of Louisiana and the owner of large lots of cotton situated in Western La and Southern Mississippi, acquired long since in payment of debts &amp; by purchase (as I can show by the proper documents in my possession) and as a citizen of the United States, I ask that the privilege be granted me of bringing my property under my control and disposing of it in such manner as shall be most advantageous, after payment of the Internal Revenue &amp; other taxes, decreed by the General Government.&#13;
&#13;
I respectfully request that I be exempted from the 25% duty, inasmuch as this cotton was my property long before the passage of the act that imposed that duty: circumstances beyond my control, having until this time, prevented me from bringing it to market.&#13;
&#13;
This cotton has been produced by very many plantations and I ask, in order to prevent my meeting with opposition from the people and to secure their friendly co-operation, that I be allowed to take outside the lines of military occupation, plantation supplies to the extent of Fifty dollars per bale of cotton. Upon that condition depends the getting out of my cotton and the number of bales is such that it would be an object, especially now that the stock on hand in new york is reduced to a two weeks supply. I respectfully represent, what you already know Mr President, that the introduction of supplies for plantations in that section of country can in no way whatever benefit the Southern Army: on the contrary the people becoming holders of U. S Treasury notes by that fact cease to be ennemies.&#13;
&#13;
Should you Mr President, see fit to grant my request, I respectfully suggest that I be provided by you, with a document stating your intentions and granting me leave to proceed with one or more small steamboats and barges, beyond the lines of military occupation; authorizing me also to land at any points on the Mississippi River, at my risk, for the purpose of bringing out my cotton and to repeat the trips until all my cotton shall have been brought to market.&#13;
&#13;
I leave the matter Mr President in your hands, satisfied that your wisdom and practical sagacity will find means to enable a citizen of the United States to get possession of his property, from its nature liable every day to be lost, especially in the case of a Union man, who though he opposed secession, as far as was in his power has suffered as much as any secessionist.&#13;
&#13;
Circumstances have made me the owner of that kind of property and it is not unreasonable I hope to ask that more facilities be granted me than to a Northern man who has lost nothing at home and has acquired or expects to acquire cotton purely for speculating purposes.&#13;
&#13;
I am Mr President&#13;
&#13;
very respectfully your obedient Servt&#13;
&#13;
Fergus Peniston&#13;
&#13;
Washington City Septer 5th 1864.</text>
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              <text>Peniston, Fergus. &lt;em&gt;Fergus Peniston to Abraham Lincoln, Monday, September 05, 1864 (Requests permission to take control of property in Louisiana).&lt;/em&gt; Letter. Library of Congress. http://memory.loc.gov/cgi-bin/ampage?collId=mal&amp;amp;fileName=mal1/359/3595300/malpage.db&amp;amp;recNum=0. Accessed December 17, 2016.</text>
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                <text>In this letter, Fergus Peniston, a Louisiana cotton merchant, requested permission from the executive branch to transport a substantial amount of cotton to market. He further petitioned President Lincoln for relief from certain taxes and to trade outside of Union occupied territory. Sensitive to the administration's concern that the purchase of cotton would aid the Confederate war effort, Peniston assured Lincoln that "the introduction of supplies for plantations in that section of country can in no way whatever benefit the Southern Army: on the contrary the people becoming holders of U. S Treasury notes by that fact cease to be ennemies [sic]." &#13;
Peniston was awarded a permit in January 1865.</text>
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                  <text>Trading with the Enemy: Cotton Permits, Smuggling, and Speculation in the Civil War</text>
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                  <text>Alison Burke and Phyllis Plitch</text>
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                  <text>Throughout the Civil War, President Lincoln and his administration were vexed by the issue of cotton. An essential raw material for industrial enterprise, cotton (and its sudden scarcity) threatened the Union war effort. The letters, newspaper articles, and government records in this collection reveal an administration grappling with the simultaneous need to starve the Confederacy of resources and increase the available supply of cotton. The ultimate solution, a "cotton permit" system, was vulnerable to cronyism and abuse, leading Congress to declare that "it is believed to have led to the prolongation of the war, and to have cost the country thousands of lives and millions upon million in treasure."</text>
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              <text>Washington. D. C.&#13;
&#13;
September 21st 1864.&#13;
&#13;
I do hereby certify that Mr Fergus Peniston of Louisiana is the owner of Fifty three Hundred &amp; ninety five (5395) bales of cotton located in western Louisiana, for which he paid Ten Hundred Thousand dollars in Confederate notes, two or three years ago &amp; that he is besides the owner of other large lots of cotton all the deeds to which I have seen besides my having become possessed of the information through various other sources. The titles to the 5395 bales were lost by him on the St Boat Bunyan which sunk on the Missi River last July.&#13;
&#13;
S. L. Casey</text>
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                <text>This letter to President Lincoln from former Congressman Samuel L. Casey was written on behalf of Fergus Peniston, a Louisiana cotton merchant seeking permission to transport his supplies to market. Support from politicians and friends of the administration helped cotton traders obtain official permits. </text>
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