to afford the manufacturer a liberal profit upon the probable cost of production: Provided, however, That no such advance shall be made until the party applying therefor shall enter into bond and security, to be approved by the Secretary of War, or by some one appointed by him to take and approve said bond. Said bond to be in the penalty of double the amount proposed to be advanced, and to be conditioned to the effect that the principal obligor shall well and truly, and by a certain time, to be named in the bond, proceed to erect, complete, and put into effective operation the manufactury proposed; that he will expend the sum proposed for these purposes; that he will appropriate the money advanced by the Government to such purpose, and to no other use or purpose; and, as far as practicable, will keep the said property insured, and that he will repay the same from the first merchantable article manufactured until he shall fully repay to the Confederate States, in the article and at the price stipulated for, the sum advanced: And provided further, That no such advance shall be made until the party applying therefor shall subscribe a written oath indorsed upon the back of said bond, which may be a administered by any person competent to administer oaths, that said advance is asked specified in this act, and for no other, and that he or they will so apply said funds which may thus be advanced. And a willful and corrupt violation of this oath shall be deemed perjury, and punishable by imprisonment for not less than three nor more than ten years.
SEC. 2. The Congress do further enact, That the Secretary of War may, at his discretion in anticipation of the erection of such manufactury or manufactures, enter into such further contracts with the persons proposing to establish the same, for the thing to be procured, as shall comport with the then present or prospective wants of Government, and may or may not, at his discretion, require security for the performance of the same; but no advance or prepayment shall be made on such last-mentioned contracts. And contracts made under this section of this act shall be such as may afford the manufacturer a liberal profit on the probable cost of production.
SEC. 3. The Congress do further enact, That in case of the destruction of any such manufactory of gunpowder, without the negligence or fault of the owner, before the repayment to the Government of the advance made by it under the first section of this law, the owner shall be excused from the further performance of such contract, save so far as he may be able to perform his contract with the property remaining, or from the manufactured article on hand at the time of and saved from such loss.
SEC. 4. The provisions of this act shall apply to cases of enlargement of manufactures of small-arms, gunpowder, and saltpeter, now established or being established within the Confederate States, but the advances made in such cases shall only be 50 per cent. upon the amount proposed to be invested in the enlargement of such manufactory, and no now existing investment in such manufactory shall be computed or taken into account in determining such 50 per cent.
ALEXANDER H. STEPHENS,
President of the Congress pro tempore.
JANUARY 13, 1862.
I certify that this act passed the Congress.
J. J. HOOPER,
55 R R-SERIES IV, VOL I