and thus diminishing its value below even its present depreciation, his claims for his arrears of pay will have been practically repudiated instead of being paid. Justice to the soldier prompted Congress to pass this bill. The same motive induces me to withhold my approval of it; and if my objection shall appear to you well founded, when your attention is drawn to the supposed consequences that would result from this legislation, I am persuaded that you will concur in my opinion that it ought not to be adopted.

Fourth. There is a mechanical difficulty in the execution of the law of which Congress was not aware, and which under any circumstances would render the bill unavailing for its intended purpose of prompt payment of the arrears due the Army.

The removal of the Treasury Note Bureau from Columbia, the time required for re-establishing it with its machinery at another locality and for preparing Treasury notes for the $50,000,000 or $60,000,000 remaining for issue under existing laws, together with other causes which it is unwise to relate, would prevent the issue of the notes provided for in this bill for at least three months to come.

It is gratifying to assure you of my belief that the receipts from the tax bill just passed, together with other resources within reach of the Treasury, will enable the Government to pay the arrears due to the Army and Navy sooner than the additional notes contemplated by the bill could be issued, and that the proposed increase of currency can thus be avoided without causing delay in satisfying the just claims of the defenders of our country.

JEFFERSON DAVIS.

AN ACT to raise coin for the purpose of furnishing necessary supplies for the Army.

The Congress of the Confederate States of America do enact, That in order to procure the means of purchasing supplies for the Army, the Secretary of Treasury, under the direction of the President, be, and he is hereby, authorized to borrow from any bank, banking company, corporation, association, or person, any sum or sums in coin, not to exceed three millions of dollars in the aggregate, and to secure the repayment of any sum or sums so borrowed at such time as may be agreed upon, not to exceed two years after the ratification of a treaty of peace between the Confederate States and the United States, to cause to be issued bonds of the Confederate State, s in such convenient sums as may be agreed upon, payable in coin, and to bear interest at the rate of six per cent. per annum, payable semi-annually in specie; and to secure the repayment of any sum or sums so borrowed, with the interest thereon, the said Secretary by further authorized and empowered to pledge in such legal form as may be agreed upon any cotton or tobacco owned by the Government, to the extent in value of any such loan so obtained, or the proceeds thereof, when sold, or to convey such cotton and tobacco, or any part thereof, in absolute payment of such loan, with the right on the part of the lender of such coin to export or transport such cotton and tobacco beyond the limits of the Confederate States, free from any molestation on the part of the authorities of the Confederate States, or the payment of any duty, except to the extent of one-eighth per cent. now imposed by law.

Sec. 2. In the event of the Secretary of the Treasury shall not be able at once to obtain coin to the amount of three millions of dollars under