Tax in Kind.
The War Back Home
by Dennis Brooks and Chip Pate
Throughout "the Late Unpleasantness," the young Confederacy struggled to pay its way as a nation. Financing the start of a new nation was enough of a challenge, but financing the start of a new nation at war was quite another. Despite being underfunded and ill-equipped, Johnny Reb made the best of his circumstances and continued fighting against a well-financed, fully-equipped foe.
With the scarcity of cash anywhere in the South and the war pushing well beyond the couple years many anticipated, the Confederate States' financial condition became even worse, and legislators looked back home for ways to raise money and defend the new nation.
One document recently presented to the Lane Society by a local resident demonstrates one way the Confederate government tried to finance the war. Titled "Tax in Kind," the form describes taxes paid by Margaret Culberson of Chatham County in the form of agricultural products to satisfy her obligation to Richmond.
An introduction describes the legislation of February 17, 1864, as "An Act to lay taxes for the common defence, and carry on the Government of the Confederate States." It is interesting that the legislation created a national tax, rather than relying on states to provide funds in whatever ways they chose.
To receive the tax, an assessor by the name of T.C. Womble visited Margaret Culberson on September 3, 1864, to estimate the quantity and value of all agricultural products she produced during the year that were taxable under the act, including those that had already been sold or consumed before the assessment was made. Products falling under the Act included wheat, oats, sheaf oats, rye, cured hay and wool.
A tithe -- or one-tenth -- of all agricultural products were taken by the Confederate government to satisfy the obligation, and a cash value of the tax was listed, presumably based on market prices at the time of the assessment.
Margaret Culberson's contribution to the war effort in 1864 came to $89.50 from her tithe of wheat, oats, cured hay and wool:
* Wheat. 45 bushels produced. 4.5 bushels used to pay the 10-percent tax at a price of $10 per bushel. Total value of wheat: $45.
* Oats. 15 bushels produced. 1.5 bushels used to pay the 10-percent tax at a price of $8 per bushel. Total value of oats: $12.
* Cured Hay. 1,600 pounds produced. 160 pounds used to pay the 10-percent tax at a price of 5.31125-cents per bushel. Total value of cured hay: $8.50.
* Wool. 30 pounds produced. 3 pounds used to pay the 10-percent tax at a price of $8 per pound. Total value of wool: $24.
* Total Tithe. 4.5 bushels of wheat, 1.5 bushels of oats, 160 pounds of cured hay and 3 pounds of wool. Total value: $89.50.
The figures also give a good look at what one local resident managed to produce during a year of war. Based on tax estimates, the total value of Margaret Culberson's agricultural products were: wheat, $450; oats, $120; cured hay, $85; and wool, $240. The total: $895.
For many reasons, prices today are a fraction of those registered during the War Between the States. Just for comparison, wheat prices that stood at $10 per bushel in 1864 were only $2.95 per bushel in the spring of 2002, based on prices provided by the United States Department of Agriculture.
Using spring agricultural prices, Margaret Culberson's tax would today have been about $51.75, broken down in this way:
* Wheat. 4.5 bushels used to pay the 10-percent tax at a contemporary price of $2.95 per bushel. Total value of wheat: $29.50.
* Oats. 1.5 bushels used to pay the 10-percent tax at a contemporary price of $1.50 per bushel. Total value of oats: $2.25.
* Cured Hay. 160 pounds used to pay the 10-percent tax at a contemporary price of 6.5-cents per bushel. Total value of cured hay: $10.40, actually more than in 1864.
* Wool. 3 pounds used to pay the 10-percent tax at a contemporary price of $3.20 per pound. Total value of wool: $9.60.
* Total contemporary value of the tithe is $51.75, and the total contemporary value of the agricultural products produced is $355.25.
There were several special exemptions to the "Tax in Kind." Those not required to pay included heads of families worth less than $500; poor families, as defined by the number of children and the amount of agricultural products produced; any member of the Confederate armed forces discharged from military service because of wounds who also was worth less than $1,000; or any widow of a military member who died in service, provided she was worth less than $1,000.
The latter provision actually was fairly complex. The exemption was for "each widow of any officer, soldier or seaman, who has died in the military or naval service, the widow not worth more than one thousand dollars. Provided, the farmer or planter shall not pay a tax in kind upon corn, when he does not produce more than two hundred bushels, or upon Irish potatoes, when he does not produce more than fifty bushels, or upon peas and beans, when not more than twenty bushels are produced; and the forage derived from the corn plant shall also be exempt in all cases where the corn is not taxed in kind, neither shall any farmer or planter, who does not produce more than fifteen pounds of ginned cotton for each member of his family, or ten pounds of wool, be subject to the tax in kind."
Portions of crops that were necessary to raise hogs for pork also were exempt from taxation under the 1864 act.
In some cases, some taxes were "paid in advance" when Confederate troops on the march took agricultural goods directly from citizens while foraging.
When troops acquired goods directly from citizens, quartermasters were instructed to provide a voucher indicating the type and approximate value of items "purchased" for use by the troops. If the voucher indicated the amount paid, the voucher presumably served as a receipt. But, most vouchers indicated that the amount had not been paid.
In that case, citizens could present vouchers later as proof of their prior contribution to the government and as satisfaction for some of the in kind taxes otherwise due.
Also presented to the Lane Society by a local resident were two different documents, "Voucher for Purchases," each issued on April 11, 1865, in exchange for five bushels of corn, valued at $20 per bushel, for a total amount of $100. Neither "purchase" had been paid.
Documents of both kinds are now fairly rare. Because they had no value at all after the war, many were used to wrap meat or serve the same use as scrap paper. But, they do show the contribution of local residents to the war, which was not only fought on the battlefield, but by families struggling on farms back home to produce for themselves and their nation.
