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of the contest. Had the wildest devotee of 'Manifest Destiny' been asked beforehand to estimate the extent to which our Government could borrow money or incur debt to prosecute a Civil War which imperiled its existence, he could hardly have gone beyond One Thousand Millions of Dollars-which was barely a third of the debt actually created; and, when we consider also the State and local debts likewise incurred in raising and fitting out their several contingents, the actual debt incurred was probably over Four Billions-the total expenditure in prosecuting the War on our side being considerably above that stupendous sum.

The marvel of this achievement is not dwarfed by the fact that the Rebels encountered even greater financial straits and struggled through kindred difficulties. They were fight

vast and costly steam navy-a war | conclusion, was the standing miracle in which well-appointed armies had to be transported by water or by railroads for hundreds of miles a war for which nearly every weapon, every carriage, every means of offense or defense, had to be created or bought on the spur of the exigency-a war wherein our inexperience and lack of adaptation to the business were serious elements of cost-a war wherein countless millions had to be raised on the heel of every great disaster-often, when our seat of Government was in imminent peril of capture, and when foreigners, with scarcely an exception, proclaimed our cause already hopelessly lost, and deafened the general ear with their vehement protests against the criminal madness of pouring out rivers more of blood and heaping up mountains of debt to no possible end but to gratify a sullen, stupid, brutal obstinacy—a bankrupt but inexorable pride. When we adding almost always on their own soil that a very considerable proportion of the wealth and intelligence of the loyal States was profoundly hostile to the prosecution of the War on our part, as fatal to all hopes of any desirable or even possible restoration of the Union, and, very naturally, not only refrained from subscribing to the loans continually pressed on the market, but dissuaded others from subscribing, and that we number few moneyed capitalists among our people—most, even of those in thrifty and comfortable circumstances, being oftener in debt than otherwise, while very few are accustomed to control considerable sums in money-it must be felt that the raising, in one way or another, of the gigantic loans and other means whereby the War was at length brought to a triumphant

they used railroads, &c., as though they were public property-nearly all their men of wealth and position either were or professed to be wholly devoted to their cause, and ready to contribute whatever they had to its maintenance. They paid nothing as bounties to recruits, obtaining them by a relentless conscription; their marches were hundreds of miles to our thousands. On the ocean, they spent little or nothing; while our outlay for vessels, in building, equipping, and maintaining our fleets and naval armaments, amounted to hundreds of millions of dollars. True, they were obliged to resort to irredeemable paper earlier, while its depreciation proceeded faster and much farther than ours; but, having ceased to pay their soldiers, and

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NATIONAL DEBT-CURRENCY DEPRECIATION.'

663

feeding them mainly by requisitions, | The amount first provided for was they were able to prosecute the con- $150,000,000; but the aggregate istest after their credit was gone and sued was increased, under subsequent their currency worthless; whereas, acts, till it exceeded $433,000,000, behad the time ever arrived when side a very large amount in notes 'greenbacks' would no longer buy ba- which bore interest and were payable con, at some not absolutely intolera- at a specified early day. ble price, that circumstance must have ended the War. The South was not so rich nor so populous that an invading army might there support itself, however amply provided with arms and munitions.

The rapid growth of our National Debt is summarily exhibited in the following table :

1860-June 30-total....

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1,097,274,360

2,749,491,745

The general suspension of specie payment was instantly followed by a depreciation of the Currency-in other words, the bank notes which formed the usual, recognized circulating medium wherein payments were made, sank in value below the coin they represented—the disparity being indicated by the premium at which gold could be purchased with irredeemable paper. Throughout Janu$64,769,703 90,867,828 ary, 1862, this ranged from 1 to 5 514,211,371 per cent.; in February, its range of 1,740,036,689 fluctuation was within those extremes, 2,423,437,001 or from 2 to 4 per cent. In March, April, and May-though the 'Legal Tender' act had meantime been passed and the issue of treasury notes (or 'greenbacks') commenced—the range was from 1 to 3 per cent.; but in June it mounted to 9; and in July (after McClellan's failure before Richmond) to 20 per cent. In August, it fell off-varying from 12 to 154; but in September it mounted to 24, and in October to 36 per cent. In November and December, it ranged between 29 and 334; but, in January, 1863-under the disheartening influence of Burnside's misfortunes at and near Fredericksburg-it went up to 60 per cent. Here are its highest and lowest rulings during the two following years of anxiety and doubt-of alternate hope and despair:

To make treasury notes, or any form of Government promise, a legal tender, is an exercise of sovereign power which only a great public exigency will justify, and which a statesman will hesitate long before resorting to; but there are cases wherein no practical alternative exists; and ours was such a case.

The banks of the loyal States were forced to suspend specie payments in December, 1861-followed, of course, by the Treasury, whose heavy demands had been the primary cause of suspension. The act of Congress that authorized" an issue of treasury notes, which should be a legal tender as money throughout the United States, was a natural consequence.

14 Virtual close of the War. But the paying as the next item indicates-nearly Four Hunoff and mustering out of our vast armies, the dred Millions more; raising our total Debt to 15 Feb. 25, 1862. settlement of outstanding bills, &c., required-about $2,800,000,000.

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December

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avowed anti-Davis and virtual reunion candidate for Governor, and that his triumph would be a staggering blow to the Confederacy, were urged as affording special reasons for treating the Niagara overture in such manner as to strengthen the Peace Party in that and in other revolted States. The "Plan of Adjustment" which he suggested that the President might advantageously offer, in case he should decide to make any offer, was as follows:

By the pecuniary gauge thus afforded, it appears that the very darkest hours of our contest-those in which our loyal people most profoundly despaired of a successful issue-were those of July and August, 1864; following Grant's repulse from Cold Harbor, the mine explosion before "2. Slavery is utterly and forever abolishPetersburg, and during Early's un-ed throughout the same. punished incursion into Maryland, and his cavalry's raids up to Chambersburg and McConnellsburg.

16

Two abortive efforts to open a door to accommodation between the belligerents were made during this gloomy period. One of these originated with certain Confederates then in Canada, one of whom wrote to the author of this work, averring that Messrs. Clement C. Clay, of Alabama, James P. Holcombe, of Virginia, and Geo. N. Sanders (the writer) would proceed to Washington in the interest of Peace, if full protection were accorded them. Being otherwise confidentially assured that the two former had full powers from Richmond, Mr. Greeley forwarded the application to President Lincoln, urging that it be responded to, and suggesting certain terms of rëunion and peace which he judged might be advantageously proffered to the Rebels, whether they should be accepted or rejected. The facts that an important election was then pending in North Carolina, wherein William W. Holden was an

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"1. The Union is restored and declared perpetual.

"3. A complete amnesty for all political offenses, with a restoration of all the inhabitants of each State to all the privileges

of citizens of the United States.

"4. The Union to pay four hundred million dollars ($400,000,000) in five per cent. United States stock to the late Slave States, loyal and secession alike, to be apportioned respectively, by the census of 1860, in compro rata, according to their slave population pensation for the losses of their loyal citizens by the abolition of Slavery. State to be entitled to its quota upon the ratification by its Legislature of this adjustment. The bonds to be at the absolute disposal of the Legislature aforesaid.

Each

5. The said Slave States to be entitled

henceforth to representation in the House on the basis of their total, instead of their Federal population: the whole being now free.

"6. A National Convention to be assembled so soon as may be, to ratify this adjustment, and make such changes in the Constitution as may be deemed advisable."

He added:

tainable, though I believe it to be so. But I "I do not say that a just peace is now atdo say that a frank offer by you to the insurgents of terms which the impartial must say ought to be accepted, will, at the worst,

prove an immense and sorely needed advantage to the National cause. It may save us from a Northern insurrection.

"P. S.-Even though it should be deemed unadvisable to make an offer of terms to the Rebels, I insist that, in any possible case, disposed to make should be received, and it is desirable that any offer they may be either accepted or rejected. I beg you to July 5, 1864.

PEACE OVERTURES AT NIAGARA AND RICHMOND.

invite those now at Niagara to exhibit their credentials and submit their ultimatum.

"H. G."

"EXECUTIVE MANSION, "WASHINGTON, July 18, 1864.

"To whom it may concern:

665

"Any proposition which embraces the restoration of peace, the integrity of the whole Union, and the abandonment of Slavery, and which comes by and with an authority that can control the armies now at war against the United States, will be received and considered by the Executive Government of the United States, and will be met by liberal terms on substantial and collateral points; and the bearer or bearers thereof shall have safe conduct both ways. ABRAHAM LINCOLN." "(Signed)

Messrs. Clay and Holcombe made the most of this in a public manifesto, intended to 'fire the Southern heart,' and to disaffect those in the loyal States who were anxious for honorable peace at the earliest moment. And there was a very widespread impression that the overture of the Confederates had not been met in the manner best calculated to strengthen the National cause and

The President hereupon saw fit— alike to the surprise and the regret of his correspondent-to depute him to proceed to Niagara, and there communicate with the persons in question. He most reluctantly consented to go, but under a misapprehension which insured the failure of the effort in any event. Though he had repeatedly and explicitly written to the President that he knew nothing as to what the Confederates in Canada might or would propose as a basis of adjustment, and did not greatly care (since the more unreasonable their proposition, the better for the National cause), and had neither purpose nor desire to be made a confidant, much less an agent in the premises, it was expected on the President's part that he was virtually and substantially to nego-invigorate the arm of its supporters. tiate and settle the basis of a pacification with them; so that their visit to Washington was in effect to be the result, and not the possible occasion, of adjustment and peace. This expectation was indicated in a final note from the President, transmitted by his Private Secretary, Maj. Hay, with the message that sent him to Niagara; but its purport was misapprehended in view of his explicit, repeated refusals to do more in the premises than be the means of bringing the Confederate agents to Washington, provided they should prove to be responsibly accredited. The whole matter thus terminated in failure and disappointment, with some exasperation on the Rebel side, and very decided condemnation on the part of the Opposition, because of a final missive from the President, couched in these terms:

In other words, it was felt thatsince the overture originated with them they should have been allowed to make their own proposition, and not required in effect to make one dictated to them from our side, however inherently reasonable.

But, happily, another negotiation even more irregular and wholly clandestine-had simultaneously been in progress at Richmond, with a similar result. Rev. Col. James F. Jaques, 73d Illinois, with Mr. J. R. Gilmore, of New York, had, with President Lincoln's knowledge, but without his formal permission, paid a visit to the Confederate capital on a Peace errand; being allowed to pass through the lines of both armies for the purpose. Arrived in Richmond, they addressed a joint letter to Judah P. Benjamin, Secretary of State, requesting an interview with

President Davis, which was accord- | more than a victory to the National

ed; and a long, familiar, earnest colloquy ensued, wherein the Confederate chief presented his ultimatum in these terms:

"I desire peace as much as you do; I deplore bloodshed as much as you do; but I feel that not one drop of the blood shed in this War is on my hands-I can look up to my God and say this. I tried all in

my power to avert this War. I saw it coming, and for twelve years I worked night and day to prevent it; but I could not. The North was mad and blind; it would not let us govern ourselves; and so the War came and now it must go on till the last man of this generation falls in his tracks, and his children seize his musket and fight our battle, unless you acknowledge our right to self-government. We are not fighting for Slavery. We are fighting for INDEPENDENCE; and that or extermination we WILL have."

cause. For, though the Confederate chiefs had ever held but one language on this point-had at no time given any one reason to believe that they might be reconciled to the Union-it was habitually assumed by the Opposition in the loyal States that they were fighting not against the Union, but against Abolition; and that they might easily be placated and won to loyalty, were but the Democratic party restored to power."

The Democratic National Convention had been originally called" to assemble at Chicago on the 4th of July; but its meeting was, in June,

Again, at parting, Mr. Davis bade postponed to the 29th of August;

them

"Say to Mr. Lincoln, from me, that I shall at any time be pleased to receive proposals for peace on the basis of our inde-President. pendence. It will be useless to approach me with any other."

Thus it was not only incontestably settled but proclaimed, through the volunteered agency of two citizens, that the War must go on until the Confederacy should be recognized as an independent power, or till it should be utterly, finally overthrown. The knowledge of this fact was worth

"John B. Jones, formerly editor of the Southern Monitor, Philadelphia, who returned to his native South at the outbreak of the Rebellion, and obtained a clerkship in the Confederate War Department, in his 'Rebel War-Clerk's Diary,' thus records an incident of Mr. C. L. Vallandigham's brief sojourn in the Confederacy

under the sentence of Gen. Burnside's courtmartial:

"June 22d, 1863.-To-day, I saw the memorandum of Mr. Ould, of the conversation held with Mr. Vallandigham, for file in the archives. He says, if we can only hold out this year, that the Peace party of the North would sweep the Lincoln dynasty out of political existence. He seems to have thought that our cause was sinking, and feared we would submit; which would, of course, be ruinous to his party. But he advises strongly

on which day, it there assembled, and was fully organized, with Gov. Horatio Seymour, of New York, as President. The States not absolutely in the power of the Rebellion were fully and strongly represented; but, in addition to the delegates, there was a vast concourse of the master-spirits of the party, especially from the Western States, where hostility to the War was more pronounced and unqualified than at the East; while the 'Order of American Knights,' 'Sons of Liberty,' or by against any invasion of Pennsylvania; for that would unite all parties at the North, and so strengthen Lincoln's hands that he would be able to crush all opposition, and trample upon the constitutional rights of the people.

"Mr. Vallandigham said nothing to indicate that either he or the party had any other idea

than that the Union would be reconstructed un-
der Democratic rule. The President indorsed,
with his own pen, on this document, that, in re-
gard to invasion of the North, experience proved
the contrary of what Mr. Vallandigham asserted.
But Mr. Vallandigham is for restoring the Union,
amicably, of course; and, if it can not be so done,
then possibly he is in favor of recognizing our
independence. He says any reconstruction
which is not voluntary on our part would soon
be followed by another separation, and a worse
war than the present one."
15 Jan. 12.

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