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Address to the Slaveholding States.

Address to the Slave holding States.

rate, independent States, each | and grandeur. You have loved State acting for itself, we adopt the Union, in whose service your ed it. South Carolina, acting in great statesmen have labored, her sovereign capacity, now thinks proper to secede and your great soldiers have fought and conquered from the Union. She did not part with her sovereignty-not for the material benefits it conferred, but with in adopting the Constitution. The last thing a State can be presumed to have surrendered is her sovereignty. Her sovereignty is her life. Nothing but a clear, express grant can alienate it. Inference should be dumb. Yet it is not at all surprising that those who have construed away all the limitations of the Constitution should also by construction claim the annihilation of the sovereignty of the States. Having abolished all barriers to their omnipotence by their faithless constructions in the operations of the General Government, it is most natural that they should endeavor to do the same toward us in the States. The truth is, they having violated the express provisions of the Constitution, it is at an end as a compact. It is morally obligatory only on those who choose to accept its perverted terms. South Carolina, deeming the compact not only violated in particular features, but virtually abolished by her Northern Confederates, withdraws herself as a party from its obligations. The right to do so is denied by her Northern Confederates. They desire to establish a despotism, not only omnipotent in Congress, but omnipotent over the States; and, as if to manifest the imperious necessity of our secession, they threaten us with the sword, to coerce submission to their rule.

"Citizens of the Slaveholding States of the United States! Circumstances beyond our control have

placed us in the van of the great controversy

the faith of a generous and devoted chivalry. You have long lingered and hoped over the shattered remains of a broken Constitution. Compromise after compromise, formed by your concessions, has been trampled under foot by your Northern Confederates. All fraternity of feeling between the North and the South is lost, or has been converted into hate, and we, of the South, are at last driven together by the stern destiny which controls the exist ence of nations. Your bitter experience of the faith lessness and rapacity of your Northern Confede rates may have been necessary to evolve those great principles of free government, upon which the liberties of the world depend, and to prepare you for the grand mission of vindicating and re-establishing them. We rejoice that other nations should be satisfied with their institutions. Self-complacency is a great element of happiness, with nations as with individuals. We are satisfied with ours. If they prefer a system of industry in which capital and labor are in perpetual conflict-and chronic starvation keeps down the natural increase of population--and a man is worked out in eight years-and the law or dains that children shall be worked only ten hours a day—and the saber and bayonet are the instruments of order-be it so. It is their affair, not ours. We prefer, however, our system of industry, by which labor and capital are identified in interest, and cap

ital, therefore, protects labor, by which our population doubles every twenty years; by which starvation is unknown, and abundance crowns the land; by which order is preserved by an unpaid police, and the most fertile regions of the world where the Caucasian cannot labor are brought into usefulness by the labor of the African, and the whole world is blessed by our own productions. All we demand of other peoples is to be let alone to work out our own

between the Northern and Southern States. We
would have preferred that other States should have
assumed the position we now occupy. Independent
ourselves, we disclaim any design or desire to lead
the councils of the other Southern States. Provi-
dence has cast our lot together, by extending over
us an identity of pursuits, interests, and institutions.
South Carolina desires no destiny separated from
yours. To be one of a great Slaveholding Confede-high
racy, stretching its arms over a territory larger than
any power in Europe possesses-with population
four times greater than that of the whole United
States when they achieved their independence of the
British Empire-with productions which make our
existence more important to the world than that of
any other people inhabiting it-with common insti-
tutions to defend, and common dangers to encounter,
we ask your sympathy and confederation.
constituting a portion of the United States, it has
been your statesmanship which has guided it in its
mighty strides to power and expansion. In the field
as in the Cabinet, you have led the way to its renown


destinies. United together, and we must be the most independent, as we are the most important, and we require no other instrument to conquer among the nations of the world. United together, peace than our beneficent productions. United together, and we must be a great, free, and prosperous people, whose renown must spread throughout the civilized world, and pass down, we trust, to the remotest ages. We ask you to join us in forming a confederacy of Slaveholding States."

On Wednesday, Dec. 26th, among other resolutions offered, was one by Mr. Spain, that the Governor be requested to communicate w the Convention in secret session, any informa

Resolution of

point, by ballot, eight delegates to represent South Carolina in the Convention for the formation of a Southern Confederacy.

"Lastly. That one Commissioner in each State be elected to call the attention of the people to this


tion he possesses in reference to the condition of Forts Moultrie and Sumter, and Castle Pinckney, the number of guns in each, the number of workmen and kind of labor en.ployed, the number of soldiers in each, and what additions, if any, have been Ordinance of Revemade since the 20th instant; also, whether nue Customs, &c. any assurance has been given that the forts will not be reinforced, and if so, to what extent; also, what police or other regulations have been made, if any, in reference to the defenses of the harbor of Charleston, the coast and the State. This was considered in secret session, the same day, and is said to have hastened Major Anderson's movements, being considered by him as indicative of a design to seize Fort Sumter, and all other forts except Moultrie, which he would be called upon to evacuate.

Ordinance for a South

ern Confederacy.

Mr. Rhett offered an ordinance looking to the future alliance of the Slave States. He wished the ordinance tabled without reading, as it was thought best to await a response to the Address given above before the substance of the ordinance was made public. Mr. Memminger doubted if there was authority for receiving a paper without one reading, whereupon Mr. Rhett read it; it was as follows:

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• First. That the Convention of the seceding Slaveholding States of the United States unite with South Carolina, and hold a Convention at Montgomery, Alabama, for the purpose of forming a Southern Confederacy.


Second. That the said seceding States appoint, by their respective Conventions or Legislatures, as many delegates as they have Representatives in the present Congress of the United States, to the said Convention, to be held at Montgomery; and that, on the adoption of the Constitution of the Southern Confederacy, the vote shall be by States.

"Third. That whenever the terms of the Constitution shall be agreed upon by the said Convention, the same shall be submitted at as early a day as practicable to the Convention and Legislature of each State, respectively, so as to enable them to ratify or reject the said Constitution.

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The evening secret session was devoted to a consideration of the revenue

laws and regulations. An ordinance was adopted defining in its preamble the neces sity for some provisional arrangement, and declaring that South Carolina sought no advantage over her sister Slaveholding States by commercial restrictions, and resolved that all the customs officers of the United States "within the limits of South Carolina be, and they are hereby, appointed to hold, under the Government of this State exclusively, without any further connection whatever with the Federal Government of the United States, the same offices they now fill, until otherwise directed, and that they receive the same pay and emoluments for their services." Also, that "until it is otherwise provided by this Convention, or the General Assembly, the revenue collection and navigation laws of the United States, as far as may be practicable, be, and they are hereby, adopted and made laws of this State, saving that no duties shall be collected upon imports from the States forming the late Federal Union known as the United States of America, nor upon the tonthe citizens of said States," &c., &c. nage of vessels owned in whole or in part by

The 4th, 5th, 6th, and 7th sections of the ordinance were as follows, viz. :—

"Fourth. All vessels built in South Carolina or
elsewhere, and owned to the amount of one-third by
a citizen or citizens of South Carolina, or any of the
Slaveholding Commonwealths of North America, and
commanded by citizens thereof and no other, shall
be registered as vessels of South Carolina, under the
authority of the Collector and Naval Officer.
"Fifth.-All official acts of the officers aforesaid, in
which it is usual and proper to set forth the author-
ity under which they act, or style of documents issued
by them or any of them, be in the name of the State
of South Carolina.

66 Fourth. That in the opinion of South Carolina, "Sixth.--All moneys hereafter collected by any the Constitution of the United States will form a officers aforesaid shall, after deducting the sums nesuitable basis for the Confederacy of the Southern cessary for the compensation of the officers and States withdrawing. other expenses, be paid into the Treasury of the “Fifth. That the South Carolina Convention ap- State of South Carolina for the use of said State,



subject to the order of this Convention or of the | ties, by and with the advice and consent of General Assembly.

"Seventh. The officers aforesaid shall retain in their hands all property of the United States in their possession, custody, or control, subject to the disposal of the State, who will account for the same upon a final settlement with the Government of the United States."

Secret Action.

The evacuation of Fort Moultrie took place on the night of the 26th. The excitement which followed upon the act resulted, among other things, in the seizure, by the State, of the telegraph lines leading out of Charleston, and in the Convention's sitting almost exclusively in secret session. The legislation, therefore, of the Convention was not made immediately public, and was only learned either from the enforcement of the acts, or through the partial record of the Charleston newspapers. The Convention assumed the responsibility of the conduct of affairs in the harbor as well as on land-thus setting aside the power of the Governor and Legislature. Gov. Pickens acted under its orders and instructions.

An ordinance, entitled "An Ordinance to amend the Constitution of South Carolina, in respect to the Executive Departments," was passed in secret session of the Convention, Dec. 27th. It provided as follows:

the Senate; to nominate all officers; to appoint ambassadors, ministers, and consuls, as the General Assembly may previously direct, and also all other officers whose appointment has not otherwise been provided for by law; to fill vacancies during the recess of the Senate, by granting commissions, which shall expire at the end of the next session of the Senate; to convene the Senate whenever it thinks it necessary, provided, nevertheless, during the existence of the Commission, that all treaties, directions for the appointment of ambassadors, ministers, consuls, etc., be subject to the advice and consent of the Committee.

Second. That the Governor immediately appoint four persons, with the advice and consent of the Committee, who, with the Lieutenant Governor, shall form a Council, whose duty it shall be to advise with him.

The seizure of the Custom House, Arsenal, Post-office, Castle Pinckney, &c.—the occupation of Fort Moultrie and of Sullivan's Island-the removal of the buoys from the channel, thus necessitating a special pilot for entrance-the suppression of the lights in the light-houses-the additional fortification of the city and its approaches the enlistment First. That the Government has power to of an army-all were accomplished by the alreceive ambassadors, ministers, consuls, and most unremitting labors of the Convention agents of foreign powers; to conduct nego- and Governor, in the three days following tiations with foreign powers; to make trea-Major Anderson's movement.



THE week of December 25th to January 1st | evening, December 25th, called immediately was ushered in by a revelation of fraud which upon the President, to advise him that he startled the entire country. The facts were had been informed, by letter, of a large robsubstantially as follows:bery in his department. It was decided to Secretary Thompson, re-investigate the matter at once. Proceeding The Great Robbery. turning from his trip to to the offices Mr. Thompson attempted to ex North Carolina, Sunday amine the safe in which the Indian bonds

A Philadelphia journalist having investigated the matter, wrote of it as follows:


Floyd, to aid Russell, Majors & Co., in comply.

were kept, but discovered the key to be miss- | $300,000 worth of them additional, in all ing. He made several attempts to find it, but $870,000. On the 18th of December he adfailed. Different statements were made by dressed a letter to the Secretary of the different subordinates as to the whereabouts Interior, frankly imparting these facts, and of Mr. Godard Bailey, disbursing clerk, a requesting an investigation. This letter he native of South Carolina, to whom the bonds gave to a Senator to be delivered to the were specially intrusted, and who held the Secretary on his return from North Carolina, key of the safe. He was found, and asked which request was complied with. The in for the key, but could not produce it. The vestigation proved the truth of the state Secretary, at once suspecting the worst, pro-ments. ceeded to the office of Mayor Berrett and solicited a special police force. With these he returned to the Department, and put a guard at every avenue leading to it. The clerks were summoned, and orders given not to allow any of them to pass out. The safe was then broken open. The bonds were missing. The register of the bonds was found. Monday, Bailey, it was ascertained, was miss-draw the whole amount due them under their coning. Mr. Black, Secretary of State, District Attorney Ould and others, having knowledge of the nature of the bonds, were called in by Secretary Thompson. The clerks were severally examined as to their knowledge of the disappearance of the instruments. After much close investigation, Monday and Tuesday, the facts were elicited. They proved

to be as follows:


About two months previous to the discovery of the loss, Mr. E. Russell, of the firm of Majors, Russell & Waddell, held about a million of dollars of the official acceptances of the Secretary of War. These acceptances had been given, conditionally, in advance, for transportation of supplies to the army, contract with the Government. Mr. Russell, not finding himself able to negotiate the acceptances, was greatly embarrassed, pecuniarily; and, ascertaining from Godard Bailey, with whom he was intimately acquainted, that the latter had control over three millions of Indian Trust Funds, invested in bonds of different States, arranged with him for about half a million of dollars-these bonds to be hypothecated in New York. As security, he gave Bailey the acceptances of Mr. Floyd, which Bailey placed in the safe where the bonds were kept. During December these bonds greatly depreciated, and the bankers in New York, who made advances on them, called for additional security. Bailey, in order to save the bonds, delivered over

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ing with their huge contract for the transportation of army supplies from the Missouri River to Utah, accepted their drafts, in some instances absolutely, in others conditionally, for a sum exceeding $500,000. Subsequently he allowed Russell, Majors & Co. to

tract, with the assurance on their part that all of his acceptances as Secretary of War should be retired. Drafts matured, and Russell, Majors & Co.were un

able to meet them, and others were soon to mature,

which, unless money could be had, would be pro

tested also. Under these circumstances, Mr. Bailey, the clerk in charge of the Indian Trust Fund, who, it is said, married a niece of Secretary Floyd, was

approached by an agent of Russell, Majors & Co.,

and told that unless the acceptances referred to were provided for immediately, the Secretary of War would be disgraced irredeemably. He was then asked to lend to Russell, Majors & Co., temporarily, State bonds of the Indian Trust Fund to the amount of eight hundred and seventy thousand dollars. Bailey, influenced by the conviction that this breach of trust was the only means of saving the honor of the Secretary of War, and satisfied, also, that Russell, Majors & Co. would be able to replace the bonds according to promise, delivered bonds amounting to

$70,000 to Maj. Russell, the principal of that firm, who hypothecated them to the Bank of the Republic, New York. This is said to be Bailey's version of his unfortunate breach of official trust, which it was impossible to conceal longer, inasmuch as the Indian Bureau had applied for the coupons, to collect the January interest on the bonds abstracted. Hence, the confession of Bailey to the Secretary of the Interior, on Saturday, of the whole affair."

This affair, whatever its causes, was unfor tunate in its results, since it added much to public excitement, and turned popular sentiment very strongly against an administration which had failed so utterly to answer to the demands of the hour. Report magnified the




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sum abstracted to millions, and linked Mr. | enemies of the Union; deprecating any inter-
Floyd's name as a principal in the robbery-ference with the shipment of arms under Go-
thus intensifying the feeling of indignation vernment orders, however inopportune or im-.
growing among all classes in the North politic the order might appear; deploring
against the Southern men in the Cabinet. the existing state of things in connection with
Mr. Cobb had retired, leaving a bankrupt the administration of important departments
treasury; and now that Mr. Floyd and the of the public service so as to have shaken
Department of the Interior were responsible confidence in the people of the Free States;
for a most gigantic breach of public trust, it that while Pennsylvania is on guard at the
gave rein to the most exaggerated stories of Federal capital, it is her special duty to look
perfidy and recklessness in the Cabinet. But, to the fidelity of her sons, and in that view
the facts were as given above. The sum ab- call on the President as a citizen of this Com-
stracted amounted to eight hundred and sev-monwealth, to see that the public receive no
enty thousand dollars, which, being in bonds,
were traced; and Messrs. Russell, Majors and
Waddell, being possessed of a vast property,
were enabled, eventually, to save the Govern-
ment from serious loss.

leghany) Arsenal


This great temporary deThe Pittsburgh (Al falcation was followed by the Pittsburgh (Alleghany) Arsenal Excitement, which, for a few days, threatened serious consequences, and added materially to the alarm of the friends of the Union. An order was given to ship from the arsenal 78 guns to Newport, near Galveston, Texas, and 46 guns to Ship Island, near Balize, at the mouth of the Mississippi river. As the fortresses at both points named were still unfinished, the order of shipment, it was felt, was given thus early in order to place the valuable guns in the hands of the Secessionists. The news dispatch from Pittsburgh, dated Monday, December 24th, said that the Chairman of the House Committee on Military Affairs had been telegraphed for information-that leading Democrats of the city telegraphed to the President to have the order of shipment immediately countermanded, since the people never would allow the guns to leave the arsenal-that a call, signed by citizens of all parties, was made public arranging for a meeting of citizens to take necessary action in the matter-that a report gained currency of large amounts of shot, shell, muskets and accoutrements having already been sent South, &c. An immense meeting was held on Thursday in the street opposite the Court-house. The report of proceedings stated that several resolutions were adopted "declaring loyalty to the Union, and ability to defend ourselves against all

detriment at his hands. It behooves the President to purge his cabinet of every man known to give aid and comfort to, or in any way countenancing the revolt of any State against the authority of the Constitution and the laws of the Union. A dispatch from the Hon. Robert McKnight, asking the people to make no further resistance, but to ask for a suspension of the shipment of the until

guns further advices were received from the War

Office, was read and approved.”*

This storm was thus mo

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