have been dispensed with in our revolution, for it accomplished nothing; all its legislation was patch-work, and its measures but the weak echoes of the newspapers. The extraordinary cabinet of Mr. Davis still survived as a ridiculous cipher; for its members never dared to raise their voices on any public measure, or to assert their existence beyond signing their names to certify the laws and orders of the government, or the will of the President.

The military pragmatism of the President was his worst failing. He had treated Price, among the earliest heroes of the war, with cold and insolent neglect. He had constrained Gustavus Smith to resign, and deprived the country of one of its most brilliant generals. He had taken the unfair opportunity of a sick furlough on the part of Beauregard, to deprive him of his command in the West and give it to a favorite. He had even attempted to put Jackson in leading-strings; for it was the Presidential order that set bounds to his famous Winchester expedition, and that would have timidly recalled him from his splendid campaign in the valley. Nor was this all. There was reason to suppose that Lee's return from the territory of the North was constrained by the views of the Executive, and that the President, who had once defeated the capture of Washington, by his interference at the first field of Manassas, had again repeated his intermeddling, removed a decisive victory from the grasp of our army, and turned back the war for years.

While such was the envious or ignorant interference of the President with our most meritorious generals, he was not without favorites. While he quarrelled with such men as Price, Beauregard, Gustavus Smith, and Johnston, he maintained such favorites as Holmes, Heth, Lovell, and Pemberton. No man was ever more sovereign in his likes and dislikes. Favorites were elevated to power, and the noblest spirits consigned to obscurity by the fiat of a single man in the Confederacy, and that man one of the strongest prejudices, the harshest obstinacy, and the most ungovernable fondness for parasites.

in this war Mr. Davis has evidently been anxious to appear in the eyes of Europe as the military genius of the Confederacy as well as the head of its civil administration. He has been careless of public opinion at home. But this has been no proof

of stoicism or of greatness; it has merely shown his conceit to be in a different direction. This conceit has been that of "provincialism"-the courting of that second-hand public opinion which is obtained from the politicians and journalists of Europe; the bane of political and civil society in the South. No man of equal public station on this continent has ever courted the opinions of Europe more assiduously than the President of this Confederacy. The proclamations of the Executive, the general orders of the army, the pronunciamentoes of chivalry which have denied the rights of retaliation, bilked the national conscience, and nursed a viperous enemy with the milk of kindness, have all been composed with an eye to European effect. Compromises of dignity and self-respect have been made to conciliate foreign nations. Consuls drawing their exequaturs from the Washington government-a standing derogation to the Confederacy which has received them---have been sheltered and endured here; and Europe, which denies our rights over our territory, has received at our hands the safety of her citizens.

We have referred in other pages to the low condition of the finances of the Confederacy in the opening months of this year. It had since declined much further. In February, 1862, President Davis had made the most extravagant congratulations to the country on our financial condition, and pointed with an air of triumph to the failing fortunes of the enemy's treasury. In less than eighteen months thereafter, when gold was quoted in New York at twenty-five per cent. premium, it was selling in Richmond at nine hundred per cent. premium! Such have been the results of the financial wisdom of the Confederacy, dictated by the President, who advised Congress to authorize illimitable issues of treasury notes, and aggravated, no doubt, by the ignorance of his Secretary, who invented a legerdemain of funding which succeeded not only in depreciating the currency, but also in dishonoring the government.

The experiments of Mr. Memminger on the currency was the signal of multiplied and rapid depreciation. While the eccentric and pious Secretary was figuring out impossible schemes of making money, or ransacking the bookstores for works on religious controversy, unprincipled brokers in the Confederacy were undermining the currency with a zeal for

the destruction of their country not less than that of the Yan kees. The assertion admits of some qualification. Sweeping remarks in history are generally unjust. Among those engaged in the business of banking and exchange in the South, there were undoubtedly some enlightened and public-spirited men, who had been seduced by the example or constrained by the competition of meaner and more avaricious men of the same profession, to array themselves against the currency, and to commit offences from which they would have shrunk in horror, had they not been disguised by the casuistry of commerce and gain.

It was generally thought in the South reprehensible to refuse the national currency in the payment of debts. Yet the broker, who demanded ten dollars in this currency for one in gold, really was guilty of nine times refusing the Confederate money. It was accounted shocking for citizens in the South to speculate in soldiers' clothing and bread. Yet the broker, who demanded nine or ten prices for gold, the representative of all values, speculated alike in every necessary in the coun try. Nor was this the greatest of their offences. With unsur passed shamelessness brokers in the Confederacy exposed the currency of the North for sale, and demanded for it four hundred per cent. premium over that of the Confederacy! This act of benefit to the Yankees was openly allowed by the government. A bill had been introduced in Congress to prohibit this traffic, and to extirpate this infamous anomaly in our his tory; but it failed of enactment, and its failure can only be attributed to the grossest stupidity, or to sinister influences of the most dishonorable kind. The traffic was immensely profitable. State bonds and bank bills to the amount of many millions were sent North by the brokers, and the rates of discount were readily submitted to when the returns were made in Yankee paper money, which, in the Richmond shops, was worth in Confederate notes five dollars for one.

One-but only one-cause of the depreciation of the Con federate currency was illicit trade. It had done more to demoralize the Confederacy than any thing else. The inception of this trade was easily winked at by the Confederate authorities; it commenced with paltry importations across the Poto mac; it was said that the country wanted medicines, surgica

instruments, and a number of trifles, and that trade with the Yankees in these could result in no serious harm. But by the enlarged license of the government it soon became an infamy and a curse to the Confederacy. What was a petty traflic in its commencement soon expanded into a shameless trade, which corrupted the patriotism of the country, constituted an anomaly in the history of belligerents, and reflected lasting disgrace upon the honesty and good sense of our government. The country had taken a solemn resolution to burn the cotton in advance of the enemy; but the conflagration of this staple soon came to be a rare event; instead of being committed to the flames it was spirited to Yankee markets. Nor were these operations always disguised. Some commercial houses in the Confederacy counted their gains by millions of dollars since the war, through the favor of the government in allowing them to export cotton at pleasure. The beneficiaries of this trade contributed freely to public charities and did certain favors to the government; but their gifts were but the parings. of immense gains; and often those who were named by weak and credulous people or by interested flatterers as publicspirited citizens and patriotic donors, were, in fact, the most unmitigated extortioners and the vilest leeches on the body politic..

In this war we owe to the cause of truth some humiliating confessions. Whatever diminution of spirit there may have been in the South since the, commencement of her struggle, it has been on the part of those pretentious classes of the wealthy, who, in peace, were at once the most zealous "secessionists," and the best customers of the Yankees, and w now, in war, are naturally the sneaks and tools of the enemy. The cotton and sugar planters of the extreme South who prior to the war were loudest for secession, were at the same time known to buy every article of their consumption in Yankee markets, and to cherish an ambition of shining in the society of Northern hotels. It is not surprising that many of these affected patriots have found congenial occupation in this war in planting in copartnership with the enemy, or in smuggling cotton into his lines. The North is said to have obtained in the progress of this war, from the Southwest and Charleston, enough cotton at present prices to uphold its whole system of

currency-a damning testimony of the avarice of the planter. Yet it is nothing more than a convincing proof, in general, that property, though very pretentious of patriotism, when identi fied with selfishness, is one of the most weak and cowardly things in revolutions and the first to succumb under the hor rors of war.

It is pleasing to turn from the exhibition of ignorance and weakness in the government, and the vile passions of its favorites, to the contemplation of that patriotic spirit which yet survives in the masses of the people and keeps alive the sacred animosities of the war. We rejoice to believe that the masses are not only yet true, but that a haughtier and fiercer spirit than ever animates the demand of our people for independence, and insures their efforts to obtain it. The noble people and army who have sustained and fought this war will have cause to rejoice. Society in the South is being upheaved by this war, and with our independence will be re-established on new orders of merit. The insolent and pampered slaveholding interest of the South; the planters' aristocracy, blown with conceit and vulgar airs of patronage; the boast of lands and kin, give way before new aspirants to honor. The republic gives new titles to greatness. Many of those who were esteemed great politicians before the war, are now well-nigh forgotten. The honors of State, the worship of society, the rewards of affection, are for the patriots of the revolution that will date our existence. Such are the great prizes, intertwined with that of independence, which stir our people and army with noble desires and beckon them to victory.

It is not only in the present external situation of the war that encouragement is to be found for the South. With considerable additions to her material elements of success, the South has in the second year of the war abated none of that moral resolution which is the vital and essential principle of victory, whatever co-operation and assistance it may derive from external conditions. That resolution has been strengthened by recent developments; for as the war has progressed, the enemy has made a full exposure of his cruel and savage purposes, and has indicated consequences of subjugation more terrible than death.

He has, by the hideous array of the instruments of torture