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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>&lt;em&gt;Cotton Report [With Endorsement by Lincoln], February 16, 1863.&lt;/em&gt; Manuscript. Library of Congress. http://hdl.loc.gov/loc.mss/mal.2175600. Accessed December 4, 2016.</text>
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              <text>Washington D. C. Feb 16 1863&#13;
&#13;
The cotton states produced in 1860. -- 5.196.944. bales of gined cotton of 400 lbs each (Census of 1860 Table 6 p 201) The balance of cotton unsold in the states of the crop of 1860. 61. 1861. 62. 1862. 63 is estimated at not less than five millions bales. Under the law of nations permits to trade are granted by the excutive and in all our wars has been the practice of our Goverment. It being a question of trade the Secretary of the Treasury should be authorized to grant these permits not as a favour to paticular individuals but under a general system to be devised by him and sanctioned by the President of the United States. This is perfectly legal and requires no act of Congress to carry it into effect. It is similar to the Mexican Tariff of 1847 prepared by the Secretary of the Treasury addopted and enforced through him by the President and sanctioned and sustained as constitutional by the Supreme Court of the United States.&#13;
&#13;
Three agents to carry out this system should be appointed by the Secretary of the Treasury one to reside at New Orleans one at Memphis and one at Beaufort S. C. all acting under the instructions of the Secretary of the Treasury&#13;
&#13;
All persons in the loyal states or citizens or residents of foreign countries should through their agents acting under instructions of the Secretary of the Treasury be permitted under general regulations to purchase this cotton as follows viz.--&#13;
&#13;
1st For our legal tender notes&#13;
&#13;
2d For the rates of the new Banks organized by Congress.&#13;
&#13;
3d For certain articles not contraband of war prescribed under a general order by the Secretary of the Treasury&#13;
&#13;
4th These articles should be of the growth product or manufacture of the loyal states or of Foreign articles which had paid the duties to our Goverment thus realizing a revinue in the South under our Tariff.&#13;
&#13;
Many officers of our Army are charged with being engaged in these cotton speculations. Their business is exclusively to fight our battles and their time shold not be occupied nor their attention diverted by transactions in cotton they should simply protect the cotton when brought within our lines. The system should be general so that their should be no favouritism, It should extend to foreign nations as above stated so as to prevent all complaiants and remove all motives for foreign intervention. Besides the sales by Foreigners would have several good effects,&#13;
&#13;
1st To enlist the good wishes of the great manufacturing shipping commercial and working classes of foreign nations in our favour&#13;
&#13;
2d To enable us thus to collect a large revinue in the South under our Tariff&#13;
&#13;
3d To bring back to our Country large sums of Gold from Europe by turning in our favour the balance of trade by the Cotton expert.&#13;
&#13;
4th By depriveing the Southern Confederacy of Cotton which is their only hope to save their finances.&#13;
&#13;
5th By securing hosts of freinds in the South by their becoming interested to mantain our Goverment by receipts of our paper and no other money for this Cotton.&#13;
&#13;
By the furnishing a new field for the circulation of our paper the premium on Gold would be reduced. By restoring our manufacture which in 1860 was the value of 115,000.000. (Census Table 33d) the renewal of our cotton manufacture would tend greatley to promote our prosperity restore the public credit and advance the market value of Treasury Notes and stocks. It would -- enable the Goverment to clothe the Army and navy much more cheaply and reduce the price of cotton goods to consumers. Every bale of cotton thus taken from the South weakens them and strengthens us. Trade even during war with an enemy has usually been regulated by executive permits to the extent that such trade has been deemed beneficial to the Country It is beleived that such a policy would greatly hasten the overthrow of the Rebellion.--&#13;
&#13;
[ Endorsed by Lincoln:]&#13;
&#13;
A. Cotten programme.</text>
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                <text>In this report from 1863, an unknown advisor wrote to Lincoln outlining the benefits of continuing to trade for cotton, as well as precautions that would minimize the risk to the war effort. Lincoln endorsed the back of the report as "A. cotten programme." Much of the advice offered here was incorporated into the revised cotton permit system laid out in Proclamation 98. </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>"Are We to Recognize the Southern Confederacy."&lt;em&gt; Liberty Mercury.&lt;/em&gt; July 16, 1862. From the British Newspaper Archive. (Accessed November, 2016)</text>
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                <text>Newspaper editorial published in the Liverpool Mercury  raising the specter of potentially siding with the Confederacy if the Union didn't end its war with the South. </text>
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                <text>The British Library Board. All Rights Reserved. Reproduced here under Fair Use.</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>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>Atkinson, Edward. "Cotton vs. currency. Ought the cotton trade to be opened?" &lt;em&gt;New England Loyal Publication Society.&lt;/em&gt; June 17, 1864. Library of Congress, https://www.loc.gov/item/rbpe.07106700/. Accessed December 09, 2016.</text>
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                <text>Editorial written in 1864 by Edward Atkinson, a cotton mill executive and abolition activist. He argued that the current cotton trading system is inefficient and rife with corruption. Since it did not prevent money and goods from getting back to the Confederate war effort, Atkinson believed that the entire program should be scrapped and free trade of cotton embraced.</text>
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              <text>Executive Mansion.&#13;
&#13;
Washington, January 4th, 1865.&#13;
&#13;
Whereas satisfactory evidence, has been furnished to me by Fergus Peniston, that he is now and was prior to April 1864 the legitimate owner of large amounts of Cotton and naval stores situated in Louisiana and Southern Mississippi and reposing special trust and confidence in said Peniston, I do by these presents, authorize him to proceed with Steamboats barges and other conveyances, at his own risk, up and down the Mississippi River and land at any points on said River between Natchez &amp; Port Hudson, also up and down Red River and its tributaries and navigate the waters of Lakes Pontchartrain &amp; Borgne to and from East &amp; west Pascagoula and mouth of Pearl River and up and down Pearl &amp; Pascagoula Rivers for the purpose of bringing out Twenty three Thousand Six Hundred &amp; Forty Bales of Cotton and Seventeen Thousand Two Hundred Barrels of naval stores and continue said voyages until this stated amount of Cotton &amp; Naval stores shall have been brought by him to New orleans. And in order to secure the products specified in this permit, I do furthermore authorize said Peniston to take on his boats or conveyances outside the Military lines of the United States and carry to any of the above designated localities, plantation Supplies to the extent of Thirty per Cent of the value of the Cotton or naval stores brought to New orleans by his vessels.&#13;
&#13;
Nothing in this permit is to be so construed as to prevent said Peniston from disposing of said Cotton or naval stores in New orleans or new york at his option, after payment of the Internal Revenue &amp; other taxes, fixed by Congress, not including however the Twenty five per Cent tax.&#13;
&#13;
All officers of the Army or navy of the United States &amp; Civil officers of the Government are hereby particularly required not only to not obstruct but to extend to said Peniston all facilities that may be required to Carry out the design of this permit which is the introduction of Cotton and Naval stores within the Military lines of the United States.</text>
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                <text>This permit authorized Fergus Peniston, a Louisiana cotton merchant, to transport and sell the cotton he possesses. In order to obtain this permit, Peniston wrote several petitions to Lincoln and enlisted friends of the administration to write on his behalf.</text>
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              <text>"Curtis' Cotton Crimes. The Cotton Speculations as Developed in the Trials before General McDowell." &lt;em&gt;The Crisis.&lt;/em&gt; June 03, 1863. Accessed December 10, 2016.</text>
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                <text>The Crisis, an Ohio newspaper sympathetic to the Confederacy, published this editorial excoriating Major General Curtis for using his authority to confiscate and sell cotton. The editorial is followed by a transcript of Major General Steele's testimony before a military tribunal Curtis' alleged criminal activities in Arkansas. Rumors of abuse and corruption dogged many Union officers in cotton country, and Curtis flatly denied any wrongdoing. </text>
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              <text>Executive Mansion,&#13;
&#13;
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My dear Sir:&#13;
&#13;
I have received, and read, your pencil note. I think you do not know how embarrassing your request is-- Few things are so troublesome to the government as the fierceness with which the profits of trading in cotten are sought-- The temptation is so great that nearly every body wishes to be in it; and when in, the question of profit controls all, regardless of whether the cotten seller is loyal or rebel, or whether he is paid in corn-meal or gun-powder-- The officers of the army, in numerous intances, are believed to connive and share the profits, and thus the army itself is diverted from fighting the rebels to speculating in cotten; and steam-boats and wagons in the pay of the government, are set to gathering and carrying cotten, and the soldiers to loading cotten-trains and guarding them-- The matter deeply affects the Treasury and War Departments, and has been discussed again and again in the Cabinet-- What can, and what can not be done, has, for the time been settled, and it seems to me I can not safely break over it. I know it is thought that one case is not much, but how can I favor one and deny another-- One case can not be kept a secret-- The authority given would be utterly ineffectual until it is shown; and when shown, every body knows of it. The administration would do for you as much as for any other man; and I personally would do some more than for most others; but really I can not involve myself and the Government as this would do.&#13;
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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>Keokuk Iowa July 1st 1863&#13;
&#13;
Dear Captain&#13;
&#13;
Yours of the 28th Ulto is duly received and I am glad you privately Advised one of the Commission of the infernal conspiracy that has been for over ten months employed in efforts to ruin me. First the Employment of men like Baker to hunt up material. Then calling a Court to give consequence to whatever Baker and others had or could find against me. Placing me in a quasi trial without the right to know my accusers my accusations or any thing only such as my Enemies smuggled out to publish exparte against me.&#13;
&#13;
I could not go before the public because this would seem like a criminal declaiming of his innocence to a jury before the jury had the evidence. I could not bring up evidence to refute because no charges were made. I asked for a Court of Enquiry into my affairs but that was not granted.-- Thus for over ten months I have been pursued by Secret foes who have done all in their power to collect slander and hold it in readiness to blast my reputation not to try me or allow me to throw off the burden.-- If I had plead guilty to every lie they propegated I would perhaps have fared better for they had to invent crimes to make me culpable.&#13;
&#13;
But you say the Court has adjourned. They have been in session three months and a half at least.-- I am glad to hear that the only lawyer on the Court says there is no Evidence against me. I have seen nothing myself that could properly be called Evidence Except it may be when Genl Hovey swore that he heard me say I had bought Whites cotten which had already been explained by myself and Winslow and may have been by others, that I confiscated the White property as Contraband and that I turned it over to my Quartermaster and that I could not have seen or known as to who did buy the Cotton.&#13;
&#13;
Hovey either lied or he was mistaken as to what I did say and the proof is before the Commission. From the first there has been a fuss about the White Cotton about which I know nothing only that I arrested a dabling officer Murdock who interfered with the Negro Sam who I had told to take care of everything.&#13;
&#13;
When I went to Arkansas I had just as much right to buy Cotton as any body. I was urged at Batesville to do so and also at Helena but I did not because I did not wish to be bothered.-- When the excitement began to make Cotton trade a general matter of demoralization to my army, I made the effort to restrain the mischeif and drew down upon myself the suspicion that I was interested in the restraint and all who were precluded from the lines became implacable foes. Malice, envy, and ambition have Carried the matter forward.--&#13;
&#13;
But these knaves cannot claims my removal as their victory. The Pro Slavery anti Provost Marshall Anti Collection of forfeited bonds anti guarding the treasury against R road bond Stock jobbl jobbers and Anti war Copperheads ought to have the Entire credit of my removal. The Presidents letters prove this.5 Their Publication was against my instructions, but I cannot suppose the President can object or will care for: They could not have been sent solely for my own eye. They vindicate him against the imputation of removing me for offences the proof of which could not then have come before him as the Commission of Enquiry had then no competent proof and had not reported.--&#13;
&#13;
True the reason he did give may not be satisfactory to all my friends yet I think most persons will perceive that he acted with good motives on false representations made by men he had reason to credit.-- The Public will make these men accountable and Henderson and Broadhead seem to feel the blows which are inflicted. They justly deserve it. I do not know Henderson. He must testify solely from hear say and he is placed in a bad position because he makes himself a volunteer witness against me now not for the good of the Service but to excuse himself for his own part taken in the matter.-- He hopes to save himself by sinking me.&#13;
&#13;
As to Broadhead he speaks of duplicity-- He is one of the Self constituted Committee that came and told me they were going to keep the Administration posted so as to prevent needless interference at Washington with my administration and asked me for a letter to the President. Supposing they were sincere I wrote endorsing them in the strongest terms. I often wondered that I seldom or never saw any of them to confer with as I supposed I would in regard to measures. Broadhead did once on his return from Washington bring me an order of General Granger published in Kentucky on the Negro question which he Broadhead desired me to introduce into my administration, but which I very respectfully declined.&#13;
&#13;
He was in a hurry at the time and I could not fully explain my reasons. It seems instead of representing me he took up false statements as evidence of my duplicity and thereupon instead of sustaining or enquiring he urged my removal! What do you think he means by duplicity if he did not dupe me &amp; all others who regarded him as true and honourable.-- I see by the shift he has secured the place of Col Dick having no doubt the affections of Govr Gamble and his jugler at Washington the Atty Genl.&#13;
&#13;
I hope the day will come when Missouri will be relieved from such representation--&#13;
&#13;
My wife joins in kind regards to all our friends especially your good wife and children. If you go East make it your special business to inform the President of my innocence in the publication of his letters and assure him it was against my injunctions &amp; wishes.-- That I saught only to show copies to friend but they thought it necessary to vindicate the President and myself against falsehood &amp; convict the real actors in their duplicity.--&#13;
&#13;
I remain Captain Very truly Your friend&#13;
&#13;
S. R. Curtis&#13;
&#13;
Maj Genl</text>
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              <text>Curtis, Samuel R. &lt;em&gt;Samuel R. Curtis to Richard McAllister, Wednesday, July 01, 1863 (Defends his conduct in purchasing cotton).&lt;/em&gt; Letter. Library of Congress. http://memory.loc.gov/cgi-bin/ampage. Accessed December 11, 2016.</text>
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                <text>Major General Samuel Curtis flatly denied any speculation, profiteering, or abuse of power in his letter to Commissary of Subsistence Richard McAllister. Curtis attributes the charges to "an infernal conspiracy" and is adamant that he never sold any cotton, only confiscated and turned over contraband to his Quartermaster. </text>
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