The division between the two parties in South Carolina had now become bitter. To Preston the men behind the State Exemption Act appeared as "designing knaves." The Mercury, on the other hand, was never more relentless toward Davis than in the winter of 1864-1865. However, none or almost none of the anti-Davis men in South Carolina made the least suggestion of giving up the struggle. To fight to the end but also to act as a check upon the central Government—as the new Governor, Andrew G. Magrath, said in his inaugural address in December, 1864,—was the aim of the dominant party in South Carolina. How far the State Government and the Confederate Government had drifted apart is shown by two comments which were made in January, 1865. Lee complained that the South Carolina regiments, "much reduced by hard service," were not being recruited up to their proper strength because of the measures adopted in the southeastern States to retain conscripts at home. About the same date the Mercury arraigned Davis for leaving South Carolina defenseless in the face of Sherman's coming offensive, and asked whether Davis intended to surrender the Confederacy.
And in the midst of this critical period, the labor problem pushed to the fore again. The revocation of industrial details, necessary as it was, had put almost the whole male population—in theory, at least—in the general Confederate army. How far-reaching was the effect of this order may be judged from the experience of the Columbia and Augusta Railroad Company. This road was building through the interior of the State a new line which was rendered imperatively necessary by Sherman's seizure of the lines terminating at Savannah. The effect of the revocation order on the work in progress was described by the president of the road in a letter to the Secretary of War:
In July and August I made a fair beginning and by October we had about 600 hands. General Order No. 77 took off many of our contractors and hands. We still had increased the number of hands to about 400 when Sherman started from Atlanta. The military authorities of Augusta took about 300 of them to fortify that city. These contractors being from Georgia returned with their slaves to their homes after being discharged at Augusta. We still have between 500 and 600 hands at work and are adding to the force every week.
The great difficulty has been in getting contractors exempt or definitely detailed since Order No. 77. I have not exceeded eight or nine contractors now detailed. The rest are exempt from other causes or over age.
It was against such a background of economic confusion that Magrath wrote to the Governor of North Carolina making a revolutionary proposal. Virtually admitting that the Confederacy had been shattered, and knowing the disposition of those in authority to see only the military aspects of any given situation, he prophesied two things: that the generals would soon attempt to withdraw Lee's army south of Virginia, and that the Virginia troops in that army would refuse to go. "It is natural under the circumstances," said he, "that they would not." He would prepare for this emergency by an agreement among the Southeastern and Gulf States to act together irrespective of Richmond, and would thus weld the military power of these States into "a compact and organized mass."
Governor Vance, with unconscious subtlety, etched a portrait of his own mind when he replied that the crisis demanded "particularly the skill of the politician perhaps more than that of the great general." He adroitly evaded saying what he really thought of the situation but he made two explicit counter-proposals. He suggested that a demand should be made for the restoration of General Johnston and for the appointment of General Lee to "full and absolute command of all the forces of the Confederacy." On the day on which Vance wrote to Magrath, the Mercury lifted up its voice and cried out for a Lee to take charge of the Government and save the Confederacy. About the same time Cobb wrote to Davis in the most friendly way, warning him that he had scarcely a supporter left in Georgia, and that, in view of the great popular reaction in favor of Johnston, concessions to the opposition were an imperative necessity. "By accident," said he, "I have become possessed of the facts in connection with the proposed action of the Governors of certain States." He disavowed any sympathy with the movement but warned Davis that it was a serious menace.
Two other intrigues added to the general political confusion. One of these, the "Peace Movement," will be considered in the next chapter. The other was closely connected with the alleged conspiracy to depose Davis and set up Lee as dictator. If the traditional story, accepted by able historians, may be believed, William C. Rives, of the Confederate Congress, carried in January, 1865, to Lee from a congressional cabal an invitation to accept the rôle of Cromwell. The greatest difficulty in the way of accepting the tradition is the extreme improbability that any one who knew anything of Lee would have been so foolish as to make such a proposal. Needless to add, the tradition includes Lee's refusal to overturn the Government.
There can be no doubt, however, that all the enemies of Davis in Congress and out of it, in the opening months of 1865, made a determined series of attacks upon his Administration. Nor can there be any doubt that the popular faith in Lee was used as their trump card. To that end, a bill was introduced to create the office of commanding general of the Confederate armies. The bill was generally applauded, and every one assumed that the new office was to be given to Lee. On the day after the bill had passed the Senate the Virginia Legislature resolved that the appointment of General Lee to supreme command would "reanimate the spirit of the armies as well as the people of the several States and … inspire increased confidence in the final success of the cause." When the bill was sent to the President, it was accompanied by a resolution asking him to restore Johnston. While Davis was considering this bill, the Virginia delegation in the House, headed by the Speaker, Thomas S. Bocock, waited upon the President, informed him what was really wanted was a change of Cabinet, and told him that three-fourths of the House would support a resolution of want of confidence in the Cabinet. The next day Bocock repeated the demand in a note which Davis described as a "warning if not a threat."
The situation of both President and country was now desperate. The program with which the Government had entered so hopefully upon this fated year had broken down at almost every point. In addition to the military and administrative disasters, the financial and economic situation was as bad as possible. So complete was the financial breakdown that Secretary Memminger, utterly disheartened, had resigned his office, and the Treasury was now administered by a Charleston merchant, George A. Trenholm. But the financial chaos was wholly beyond his control. The government notes reckoned in gold were worth about three cents on the dollar. The Government itself avoided accepting them. It even bought up United States currency and used it in transacting the business of the army. The extent of the financial collapse was to be measured by such incidents as the following which is recounted in a report that had passed under Davis's eye only a few weeks before the "threat" of Bocock was uttered: "Those holding the four per cent certificates complain that the Government as far as possible discredits them. Fractions of hundreds cannot be paid with them. I saw a widow lady, a few days since, offer to pay her taxes of $1,271.31 with a certificate of $1,300. The tax-gatherer refused to give her the change of $28.69. She then offered the whole certificate for the taxes. This was refused. This apparent injustice touched her far more than the amount of the taxes."
A letter addressed to the President from Griffin, Georgia, contained this dreary picture:
Unless something is done and that speedily, there will be thousands of the best citizens of the State and heretofore as loyal as any in the Confederacy, that will not care one cent which army is victorious in Georgia.… Since August last there have been thousands of cavalry and wagon trains feeding upon our cornfields and for which our quartermasters and officers in command of trains, regiments, battalions, companies, and squads, have been giving the farmers receipts, and we were all told these receipts would pay our government taxes and tithing; and yet not one of them will be taken by our collector.… And yet we are threatened with having our lands sold for taxes. Our scrip for corn used by our generals will not be taken.… How is it that we have certified claims upon our Government, past due ten months, and when we enter the quartermaster's office we see placed up conspicuously in large letters "no funds." Some of these said quartermasters [who] four years ago were not worth the clothes upon their backs, are now large dealers in lands, negroes, and real estate.