James A. Seddon to Robert E. Lee, March 29, 1864

General R, E. LEE, Commanding Army of Northern Virginia:

GENERAL: I have the honor to acknowledge your letter of the 26th instant and to express my obligation for the counsel you suggest in regard to the use of certificates of indebtedness. My own judgment fully approves the policy you recommend, and it was owing in some measure to suggestions and urgency on my part that there

was made in the recent currency bill a provision for the issue and use of certificates of indebtedness. These certificates have been made, by the provision allowing 6 per cent. interest and exemption from taxation, so tempting in comparison with other Confederate issues that it is hoped with confidence they will be received in payment not only of such claims as you more specially refer to, but likewise in part on general purchases through preference, or at least without objection, by the people. They will, so used, greatly diminish the volume of the currency it will be necessary to issue, and every effort shall be made by the Department to make them as available to this end as possible. No one can be more thoroughly satisfied, or perhaps none has better opportunities to feel the necessity of reducing our redundant currency and of maintaining it at some fixed reasonable standard. It is very difficult to correct the excesses to which we have been incautiously led in the issue of notes circulating as money, but Iam hopeful, with the perception of the evil that now prevails, both with the people and their representatives, there will be a steady reduction of the notes issued to the reasonable amount required for circulation, and an inflexible determination to maintain the circulation steady.

In my opinion almost any sacrifice ought to be made to obtain credits requisite to carry on the war rather than to recur to the most expensive and mischievous of all modes—the issue of a redundant currency. To aid I shall endeavor to obtain supplies from abroad, and even through our lines by an exchange of our products. Even in our own limits I expect to introduce and rely upon to a considerable extent a system of barter. I am happy to think in all this I shall have, as J infer from your letter, your approval and co-operation.

Very respectfully, yours,