New York, March 25th, 1861.
My Dear Sir: The differences between the rates of the tariffs North and South are creating great discontent already at the North, and they will in the North have to call an extra Congress to repeal their Morrill tariff. This will be the consequence; and if not, a considerable part of the direct importations usually coming North will go to the South. With free trade at the South all the imports would be diverted to the Southern ports until New York City could redress herself either by dissolving the relations she holds to the Union and adopting free trade or by bringing all the other states to do it. With her thousand millions of real estate, self defence would demand her to do the one or the other.
So, whilst cotton (whilst in the South) is king, free trade is to the rest of the Union explosion. Whilst the South can rule Europe and New England by cotton, she can by free trade explode all the power of the rest of the Union.
The South, with but light taxation now, can increase and pay fifteen times as much as they now do and then not pay as much as New York and many of the other States pay now. But if you destroy Northern revenues by free trade where and how are they to get money to pay expences and stealings, much less to carry on war against the South.
I tell you, there is a latent feeling of opposition generally prevailing against the South, even in this city; and that feeling extends to hostility in the interior towns and country, and if they do not make war it is not for want of inclination but of power. I would bet 100 to 5 that a telegram that an attack had been made on Ft. Sumter and repelled by loss of 5000 men of the South would cause an illumination even in this city, and much more in the West and New England.
Free trade will give direct trade, and direct trade will give prosperity and wealth to the South. There are thousands who would now turn their importations to the South even with the present differences in the two tariffs, but they are restrained because of the uncertainty of the action of the North and the equal uncertainty of what may be the tariff of the South. If you hold to the tariff of 1857 the North may adopt one lower and turn everything from South to North. You may then have to adopt a lower one and so keep everything vacillating. Whereas if you go to free trade they cannot go lower; you paralize the New England States and you draw off New York, and N. Jersey and Pennsylvania must follow her. New York cannot and will not yield up her commercial preeminence for any consideration, but will dissolve with all the rest and kick them to destruction first. You have the power by cotton and free trade to rule all that is worth ruling in Europe and America—only play the powers rightly.
Submit your Constitution to the vote of the people at once whilst they are in the temper to adopt it. Clinch them at once and bind them, and stop the mouths of all croakers. The people must be with you, they cannot but prefer your Constitution to the old one. Make them commit themselves at once and forever. Then all the North will see its solidity and permanency, and rely and act upon it. Nothing else but permanence is wanting, to carry 20,000 people from this city to the South before 1 Oct. next.
Only see what an increased value that will give to property, and by raising its value increase the taxes—or lower the rate—and make them more tolerable to the people. Suppose a man with 10,000$ property pays the first year 100$ to the Confederacy; the same property will be worth 15,000$ the 2d year, and a tax of 70¢ per 100 will produce more than one pct. did the year before. Just set the tide towards prosperity and it will flow on stimulating itself and increasing wealth as it goes. Instead of tribute every year to the North it will not only retain the tribute but bring tribute from the North.
Moreover all Europe will hail your free trade, not from any real love (though they will profess much of it), but because it suits their interests; but they will laud you as much as if they really loved you and promote your true interests as well as their own. I would vastly prefer to levy an export duty of 10 pct. or more and have none upon imports. It would be so much cheaper and easier to collect, and without the ramifications, simple in all its details, and affording basis for statistics.
I hear of many merchants going South; some to establish branches and some altogether. You will find a great change, and if you don’t confine the privilege of voting, the newcomers will vote you down and reestablish the Union in spite of you.
I want an act to give me the right to establish an India-rubber factory, with a capital of $100,000, to make car springs, hose and belting. If I send you the bill can you attend to it for me? When does Congress meet again?
The war feeling so far as talk is concerned is subsiding, but more because they cannot accomplish anything to suit them than for any more regard to the wants and rights of the South.
It is my opinion that the Administration will attempt to reinforce Ft. Pickens and occupy all the forts and strong places in the other slave states, especially Virginia, N. Carolina, Arkansas, etc.
I rather incline to the idea that Virginia and Maryland had better remain with the North. They will cost too much to get them free from Northern chains and there are too many who sympathise more with the free than the slave states; and moreover they would constitute a very good barrier to stand between the South and the North.
I think the Southern loan will all go at or about par—from N. Orleans to S. Carolina—and with one million of treasury notes fundable in sums of 1000$ at the 1st every month, any balance not subscribed for would soon be absorbed, and thus keep the treasury notes at par.
Please let me hear from you.
From Annual Report of the American Historical Association for the Year 1911.
Gazaway Bugg Lamar (1798-1874) was an American merchant in cotton and shipping in Savannah, Georgia, and a steamboat pioneer. He was the first to use a prefabricated iron steamboat on local rivers, which was a commercial success. In 1846 he moved to New York City for business, where in 1850 he founded the Bank of the Republic on Wall Street and served as its president. He served both Southern businesses and state governments. After the start of the American Civil War, Lamar returned to Savannah, where he became active in banking and supporting the war effort in several ways. With associates, he founded the Importing and Exporting Company of Georgia, which operated blockade runners.
Lamar and Cobb were cousins by marriage.
Howell Cobb was an American political figure. A southern Democrat, Cobb was a five-term member of the United States House of Representatives and Speaker of the House from 1849 to 1851. He also served as the 40th Governor of Georgia and as a Secretary of the Treasury under President James Buchanan. Cobb is, however, probably best known as one of the founders of the Confederacy, having served as the President of the Provisional Congress of the Confederate States.