The Rise and Fall of the Confederate Government, Volume 2

by Jefferson Davis

"when said insurgents claim to act under the authority of any State or States, and such claim is not disclaimed or repudiated by the persons exercising the functions of government in such State or States, or in the part or parts thereof in which said combination exists, or such insurrection suppressed by said State or States, then and in such case it may and shall be lawful for the President, by proclamation, to declare that the inhabitants of such State, or any section or part thereof, where such insurrection exists, are in a state of insurrection against the United States, and thereupon all commercial intercourse by and between the same and the citizens thereof and the citizens of the rest of the United States shall cease, and be unlawful, so long as such condition of hostility shall continue; and all goods and chattels, wares and merchandise, coming from said State or section into the other parts of the United States, and all proceeding to such State or section, by land or water, shall, together with the vessel or vehicle conveying the same, or conveying persons to or from such State or section, be forfeited to the United States: Provided, however, That the President may, in his discretion, license and permit commercial intercourse with any such part of said State or section, the inhabitants of which are so declared in a state of insurrection, in such articles, and for such time, and by such persons, as he, in his discretion, may think most conducive to the public interest; and such intercourse, so far as by him licensed, shall be conducted and carried on only in pursuance of rules and regulations prescribed by the Secretary of the Treasury. And the Secretary of the Treasury may appoint such officers at places where officers of the customs are not now authorized by law, as may be needed to carry into effect such licenses, rules, and regulations."

It was provided in Section 9 as follows:

"Proceedings on seizures for forfeitures, under this act, may be pursued in the courts of the United States in any district into which the property so seized may be taken, and proceedings instituted."

It will be seen, by reference to the provisions of this section, that the President of the United States was authorized to issue his proclamation, declaring the inhabitants of any of our States, or of a portion of any one of them, to be in insurrection, and thereupon all commercial intercourse became unlawful, and was required to cease, and all goods and chattels, wares and merchandise, on the way to, or from, the State or part of a State, were forfeited to the United States, together with the vessel, or vehicle, in which they were conveyed. Two effects follow this proclamation: first, the cessation of all commercial intercourse with the citizens of the United States; second, the forfeiture of all goods in transitu. When this condition has been reached, the act then authorizes the President, in his discretion, by license, to reopen the trade in such articles, and for such time, and by such persons, as he may think most conducive to the public interest. The articles of trade were to be chiefly cotton and tobacco; the time during which it might be continued was evidently so long as it could be used for the purpose in view; the persons were those who would most skillfully advance the end to be accomplished; and the public interest was the collection and transportation of the cotton to the European manufacturers.

One may search the Constitution of the United States in vain to find any grant of power to Congress, by which it could be authorized to pass this act; much less to find any authority conferred upon the President to approve the act, or to justify him in a violation of the oath he had taken to support and maintain the provisions of the Constitution. Congress was guilty of a most flagrant usurpation by the passage of the act, and the President, instead of being a check upon their unconstitutional measures, for which object the veto power was granted to him, became, by his approval, an accomplice in their usurpation. For nothing is more evident than that it is one of the powers reserved to the States to regulate the commercial intercourse between their citizens, to the extent even of the establishment of inspection and quarantine regulations. The former of these is a benefit to commerce, and the latter, in some special cases, only retards it temporarily, to secure the health of a community.

Neither did a state of war authorize the Government of the United States to interfere with the commercial intercourse between the citizens of the States, although under the law of nations it might be so justified with regard to foreign enemies. But this relation it persistently refused to concede to the Confederate States or to their citizens. It constantly asserted that they were its subjects, in a state of insurrection; and, if so, they were equally entitled to the provisions of the Constitution for their protection as well as to its penalties. Still less could the Government make an absolute forfeiture of the goods seized, as has already been shown when treating of the Confiscation Act.

But that a state of war did not enlarge the powers of the Government, as was assumed by this act, was expressly decided by Chief-Justice Taney, in a case that arose under this act. The Secretary of the Treasury issued the regulations for trade, as the act assumed the power to authorize him to do, in the section presented on a previous page. One Carpenter neglected or refused to obtain the permit required, and his goods were seized. He contested the right of seizure, and the Chief-Justice gave a decision at Baltimore, in May, 1863. He said:

"If these regulations had been made directly by Congress, they could not be sustained by a court of justice, whose duty it is to administer the law according to the Constitution of the United States. For from the commencement of the Government to this day it has been admitted on all hands, and repeatedly decided by the Supreme Court, that the United States have no right to interfere with the internal and domestic trade of a State. They have no right to compel it to pass through their custom-houses, nor to tax it. This is so plainly set forth in the Constitution, that it has never been supposed to be open to controversy or question. Undoubtedly, the United States authorities may take proper measures to prevent trade or intercourse with the enemy. But it does not by any means follow that they disregard the limits of all their own powers as prescribed by the Constitution, or the rights and powers reserved to the States and the people.

"A civil war, or any other, does not enlarge the powers of the Federal Government over the States or the people beyond what the compact has given to it in time of war. A state of war does not annul the tenth article of the amendment to the Constitution, which declares that 'the powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.' Nor does a civil war, or any other war, absolve the judicial department from the duty of maintaining with an even and firm hand the rights and powers of the Federal Government, and of the States, and of the citizens, as they are written in the Constitution, which every judge is sworn to support. Upon the whole the Court is of opinion that the regulations in question are illegal and void, and that the seizure of the goods of Carpenter, because he refused to comply with them, can not be sustained. The judgment of the District Court must, therefore, be reversed, and the goods delivered to the claimant, his agent, or proctor."

The proclamation of the President required by the act was issued on August 16, 1861, declaring certain States and parts of States to be in insurrection, etc. Under it some licenses were issued to places in Kentucky and Missouri where the United States forces were located, without any fruitful results. Some strong military and naval expeditions were fitted out to invade us and occupy the ports where cotton and other valuable products were usually shipped. An advance was made up the Cumberland and Tennessee Rivers and down the Mississippi, as has been stated elsewhere. The ports of Beaufort, North Carolina, Port Royal, South Carolina, and New Orleans, Louisiana, were declared by proclamation of the President of the United States to be open for trade under the new system. Licenses were granted to foreign vessels by United States consuls and to coasting vessels by the Treasury Department, and the blockade was relaxed so far as related to those ports, except as "to persons, property, and information contraband of war." Collectors were appointed at the above-mentioned ports, and a circular was addressed to the foreign Ministers at Washington announcing the reopening of communication with conquered Southern localities.