The Southwestern Historical Quarterly, Volume 21, July 1917 - April, 1918 Page: 342
434 p. ; 23 cm.View a full description of this periodical.
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The Southwestern Historical Quarterly
gard his powers as adequate for the effective administration of the
remaining business of his command. As for the state authori-
ties, Smith understood that both the people and the state officials
would be jealous of the accumulation of civil powers in the hands
of a military officer. Civil functions, therefore, were assumed re-
luctantly, and those that were not necessary to his military ad-
ministration were exercised, in most instances, with the proviso,
"subject to, the approval of the president."
A primary source of his embarrassments was the condition of
the finances. The currency in particular presented a very diffi-
cult problem, namely, to obtain a sufficient amount of treasury
notes to keep the department from bankruptcy while preventing
their further depreciation. From the fall of Vicksburg until the
establishment of the treasury agency, July 1, 1864, this entire
problem devolved on the commander, who, it appears, was made
responsible for all money expended in the department. Through-
out the first year of his incumbency he had repeatedly demanded
more money in usable form; the Marshall Conference had advised
him to: procure money for the army by reissuing Confederate notes
which had been funded in the depositories, and also instructed
him to take charge of the cotton of the department in order to
procure funds and prevent speculation and the further deprecia-
tion of the currency. General Smith tried to stop the deprecia-
tion of the Confederate notes, but the causes were beyond his con-
trol. The reverses at Gettysburg, Vicksburg, and Chattanooga,
the funding acts, which were looked upon as an acknowledgment
that the government could not pay its debts, and the fact that
Texas was not only competing with the government in buying cot-
ton but was paying higher prices with bonds hypothecated on the
public lands, all contributed to depreciate the currency.60 Spec-
ulation in the notes increased. Some people refused to accept
government money and were promptly reminded by the commander
that they were violating the law and were liable to sumary pun-
ishment.6' But his threats were of little avail and financial con-
ditions became more and more discouraging. Efforts were made
to send money from Richmond, but it was usually confiscated en69Schwab, The Confederate States of America, 26.
"The State Gazette, Austin, September 30, 1863.342
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Texas State Historical Association. The Southwestern Historical Quarterly, Volume 21, July 1917 - April, 1918, periodical, 1918; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth101073/m1/348/: accessed April 18, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu; crediting Texas State Historical Association.