in Canada before an American army could be organized and marched to that province. It might be that the United States would be forced to defend her borders, instead of invading those of the enemy.

In every fort and navy-yard all was activity; the hammering of iron went on by day and by night; but what was to be done when the great ironclads of England hammered upon our defences? How long would it be before the American flag would be seen no more upon the high seas?

It is not surprising that the Government found its position one of perilous responsibility. A wrathful nation expected of it more than it could perform.

All over the country, however, there were thoughtful men, not connected with the Government, who saw the perilous features of the situation; and day by day these grew less afraid of being considered traitors, and more willing to declare their convictions of the country's danger. Despite the continuance of the national enthusiasm, doubts, perplexities, and fears began to show themselves.

In the States bordering upon Canada a reactionary feeling became evident. Unless the United States navy could prevent England from rapidly pouring into Canada, not only her own troops, but perhaps those of allied nations, these Northern States might become the scene of warfare, and whatever the issue of the contest, their lands might be ravished, their people suffer.

From many quarters urgent demands were now pressed upon the Government. From the interior there were clamours for troops to be massed on the Northern frontier, and from the seaboard cities there came a cry for ships that were worthy to be called men-of-war,—ships to defend the harbours and bays, ships to repel an invasion by sea. Suggestions were innumerable. There was no time to build, it was urged; the Government could call upon friendly nations. But wise men smiled sadly at these suggestions; it was difficult to find a nation desirous of a war with England.

In the midst of the enthusiasms, the fears, and the suggestions, came reports of the capture of American merchantmen by fast British cruisers. These reports made the American people more furious, the American Government more anxious.

Almost from the beginning of this period of national turmoil, a party of gentlemen met daily in one of the large rooms in a hotel in New York. At first there were eleven of these men, all from the great Atlantic cities, but their number increased by arrivals from other parts of the country, until at last they, numbered twenty-three. These gentlemen were all great capitalists, and accustomed to occupying themselves with great enterprises. By day and by night they met together with closed doors, until they had matured the scheme which they had been considering. As soon as this work was done, a committee was sent to Washington, to submit a plan to the Government.

These twenty-three men had formed themselves into a Syndicate, with the object of taking entire charge of the war between the United States and Great Britain.

This proposition was an astounding one, but the Government was obliged to treat it with respectful consideration. The men who offered it were a power in the land,—a power which no government could afford to disregard.

The plan of the Syndicate was comprehensive, direct, and simple. It offered to assume the entire control and expense of the war, and to effect a satisfactory peace within one year. As a guarantee that this contract would be properly performed, an immense sum of money would be deposited in the Treasury at Washington. Should the Syndicate be unsuccessful, this sum would be forfeited, and it would receive no pay for anything it had done.

The sum to be paid by the Government to the Syndicate, should it bring the war to a satisfactory conclusion, would depend upon the duration of hostilities. That is to say, that as the shorter the duration of the war, the greater would be the benefit to the country, therefore, the larger must be the pay to the Syndicate. According to the proposed contract, the Syndicate would receive, if the war should continue for a year, one-quarter the sum stipulated to be paid if peace should be declared in three months.

If at any time during the conduct of the war by the Syndicate an American seaport should be taken by the enemy, or a British force landed on any point of the seacoast, the contract should be considered at an end, and security and payment forfeited. If any point on the northern boundary of the United States should be taken and occupied by the enemy, one million dollars of the deposited security should be forfeited for every such occupation, but the contract should continue.

It was stipulated that the land and naval forces of the United States should remain under the entire control of the Government, but should be maintained as a defensive force, and not brought into action unless any failure on the part of the Syndicate should render such action necessary.

The state of feeling in governmental circles, and the evidences of alarm and distrust which were becoming apparent in Congress and among the people, exerted an important influence in favour of the Syndicate. The Government caught at its proposition, not as if it were a straw, but as if it were a life-raft. The men who offered to relieve the executive departments of their perilous responsibilities were men of great ability, prominent positions, and vast resources, whose vast enterprises had already made them known all over the globe. Such men were not likely to jeopardize their reputations and fortunes in a case like this, unless they had well-founded reasons for believing that they would be successful. Even the largest amount stipulated to be paid them in case of success would be less than the ordinary estimates for the military and naval operations which had been anticipated; and in case of failure, the amount forfeited would go far to repair the losses which might be sustained by the citizens of the various States.

At all events, should the Syndicate be allowed to take immediate control of the war, there would be time to put the army and navy, especially the latter, in better condition to carry on the contest in case of the failure of the Syndicate. Organization and construction might still go on, and, should it be necessary, the army and navy could step into the contest fresh and well prepared.

All branches of the Government united in accepting the offer of the Syndicate. The contract was signed, and the world waited to see what would happen next.

The influence which for years had been exerted by the interests controlled by the men composing the Syndicate, had its effect in producing a popular confidence in the power of the members of the Syndicate to conduct a war as successfully as they had conducted other gigantic enterprises. Therefore, although predictions of disaster came from many quarters, the American public appeared willing to wait with but moderate impatience for the result of this novel undertaking.

The Government now proceeded to mass troops at important points on the northern frontier; forts were supplied with men and armaments, all coast defences were put in the best possible condition, the navy was stationed at important ports, and work at the shipyards went on. But without reference to all this, the work of the Syndicate immediately began.

This body of men were of various politics and of various pursuits in life. But politics were no more regarded in the work they had undertaken than they would have been in the purchase of land or of railroad iron. No manifestoes of motives and intentions were issued to the public. The Syndicate simply went to work. There could be no doubt that early success would be a direct profit to it, but there could also be no doubt that its success would be a vast benefit and profit, not only to the business enterprises in which these men were severally engaged, but to the business of the whole country. To save the United States from a dragging war, and to save themselves from the effects of it, were the