Blow to Public Credit.—Treasury Notes due in 1861.—$10,000,000 required. —An Empty Treasury.—Recommendation by Secretary Dix.—Secretary Thomas recommends a Pledge of the Public Lands.—Strange Suggestions. —Heavy Burdens upon the Treasury.—Embarrassment of Legislators. —First Receipts in the Treasury in 1861.—Chief Dependence had always been on Customs.—Morrill Tariff goes into Effect.—It meets Financial Exigencies.—Mr. Vallandigham puts our Revenue at $50,000,000, our Expenditures at $500,000,000.—Annual Deficiency under Mr. Buchanan.—Extra Session in July, 1861.—Secretary Chase recommends $80,000,000 by Taxation, and $240,000,000 by Loans.— Loan Bill of July 17, 1861.—Its Provisions.—Demand Notes.—Seven- thirties.—Secretary Chase's Report, December, 1861.—Situation Serious.—Sales of Public Lands.—Suspension of Specie Payment.— The Loss of our Coin.—Its Steady Export to Europe.
CHAPTER XIX. The Legal-tender Bill.—National Finances at the Opening of the Year 1862.—A Threefold Contest.—The Country thrown upon its own Resources.—A Good Currency demanded.—Government takes Control of the Question.—Authorizes the Issue of $150,000,000 of Legal-tender Notes.—Mr. Spaulding the Author of the Measure.—His Speech.— Opposed by Mr. Pendleton.—Position of Secretary Chase.—Urges the Measure upon Congress.—Speeches by Thaddeus Stevens, Mr. Vallandigham, Mr. V. B. Horton, Mr. Lovejoy, Mr. Conkling, Mr. Hooper, Mr. Morrill, Mr. Bingham, Mr. Shellabarger, Mr. Pike and Others.—Spirited and Able Debate.—Bill passes the House.—Its Consideration by the Senate.—Speeches by Mr. Fessenden, Mr. Sherman, Mr. Sumner, Mr. Bayard, Mr. Collamer and Others.—Bill passes the Senate.—Its Weighty Provisions.—Secretary Chase on State Banks.—Policy of the Legal-tender Bill.—Its Effect upon the Business and Prosperity of the Country.—Internal Revenue Act.—Necessity of Large Sums from Taxation.—Public Credit dependent on it.—Constitutional Provisions.—Financial Policy of Alexander Hamilton.—Excises Unpopular.—Whiskey Insurrection.—Resistance by Law.—Supreme Court Decision.—Case of Hylton.—Provisions of New Act.—Searching Character.—Great Revenue desired.—Credit due to Secretary Chase.
CHAPTER XX. Elections of 1862.—Mr. Lincoln advances to Aggressive Position on Slavery.—Second Session of Thirty-seventh Congress adjourns.— Democratic Hostility to Administration.—Democratic State Conventions. —Platforms in Pennsylvania, Ohio, Indiana, and Illinois.—Nomination of Horatio Seymour for Governor of New York.—The President prepares for a Serious Political Contest.—The Issue shall be the Union or Slavery.—Conversation with Mr. Boutwell.—Proclamation of Emancipation.—Meeting of Governors at Altoona.—Compensated Emancipation proposed for Border States.—Declined by their Senators and Representatives.—Anti-slavery Policy apparently Disastrous for a Time.—October Elections Discouraging.—General James S. Wadsworth nominated against Mr. Seymour.—Illinois votes against the President.—Five Leading States against the President.— Administration saved in Part by Border States.—Last Session of Thirty-seventh Congress.—President urges Compensated Emancipation again.—Emancipation Proclamation, January 1, 1863.—Long Controversy over Question of Compensation for Slaves.—Test Case of Missouri. —Fourteen Million Dollars offered her.—General Pope's Campaign. —Army of the Potomac.—Battle of Antietam.—McClellan removed.— Burnside succeeds him.—Defeat at Fredericksburg.—Hooker succeeds Burnside.—General Situation.—Arming of Slaves.—Habeas Corpus.— Conscription Law.—Depressed and Depressing Period.
CHAPTER XXI. The President's Border-State Policy.—Loyal Government erected in Virginia.—Recognized by Congress and Senators admitted.—Desire for a New State.—The Long Dissatisfaction of the People of Western Virginia.—The Character of the People and of their Section.—Their Opportunity had come.—Organization of the Pierpont Government.— State Convention and Constitution.—Application to Congress for Admission.—Anti-slavery Amendment.—Senate Debate: Sumner, Wade, Powell, Willey, and Others.—House Debate: Stevens, Conway, Bingham, Segar.—Passage of Bill in Both Branches.—Heavy Blow to the Old State.—Her Claims deserve Consideration.—Should be treated as generously at least as Mexico.
CHAPTER XXII. National Currency and State Bank Currency.—In Competition.—Legal- tender Bill tended to expand State Bank Circulation.—Secretary Chase's Recommendation.—Favorably received.—State Bank Circulation, $150,000,000.—Preliminary Bill to establish National Banks.— Fessenden.—Sherman.—Hooper.—National Bank System in 1862.— Discussed among the People.—Recommended by the President.—Mr. Chase urges it.—Bill introduced and discussed in Senate.—Discussion in the House.—Bill passed.—Hugh McCulloch of Indiana appointed Comptroller of the Currency.—Amended Bank Act.—To remedy Defects, Circulation limited to $500,000,000.—National Power.—State Rights. —Taxation.—Renewed Debate in Senate and House.—Bill passed.— Merits of the System.—Former Systems.—First Bank of the United States.—Charters of United-States Banks, 1791-1816.—National Banks compared with United-States Banks.—One Defective Element.— Founded on National Debt.
CHAPTER XXIII. Depression among the People in 1863.—Military Situation.—Hostility to the Administration.—Determination to break it down.—Vallandigham's Disloyal Speech.—Two Rebellions threatened.—General Burnside takes Command of the Department of the Ohio.—Arrests Vallandigham. —Tries him by Military Commission.—His Sentence commuted by Mr. Lincoln.—Habeas Corpus refused.—Democratic Party protests.— Meeting in Albany.—Letter of Governor Seymour.—Ohio Democrats send a Committee to Washington.—Mr. Lincoln's Replies to Albany Meeting and to the Ohio Committee.—Effect of his Words upon the Country.—Army of the Potomac.—General Hooker's Defeat at Chancellorsville.—Gloom in the Country.—The President's Letters to General Hooker.—General Meade succeeds Hooker in Command of the Army.—Battle of Gettysburg.—Important Victory for the Union. —Relief to the Country.—General Grant's Victory at Vicksburg.— Fourth of July.—Notable Coincidence.—State Elections favorable to the Administration.—Meeting of Thirty-eighth Congress.—Schuyler Colfax elected Speaker.—Prominent New Members in Each Branch.—E. D. Morgan, Alexander Ramsey, John Conness, Reverdy Johnson, Thomas A. Hendricks, Henry Winter Davis, Robert C. Schenck, James A. Garfield, William B. Allison.—President's Message.—Thirteenth Amendment to the Constitution.—First proposed by James M. Ashley. —John B. Henderson proposes Amendment which passes the Senate.— Debate in Both Branches.—Aid to the Pacific Railroads.—Lieutenant- General Grant.
CHAPTER XXIV. Presidential Election of 1864.—Preliminary Movements.—General Sentiment favors Mr. Lincoln.—Some Opposition to his Renomination. —Secretary Chase a Candidate.—The "Pomeroy Circular."—Mr. Chase withdraws.—Republican National Convention.—Baltimore, June 7.— Frémont and Cochrane nominated.—Speech of Dr. Robert J. Breckinridge. —Mr. Lincoln renominated.—Candidates for Vice-President.—Andrew Johnson of Tennessee nominated.—Democratic National Convention.— Chicago, August 29.—Military Situation discouraging.—Character of the Convention.—Peace Party prevails.—Speeches of Belmont, Bigler, Hunt, Long, Seymour.—Nomination of General McClellan for President.—George H. Pendleton for Vice-President.—Platform.— Suits Vallandigham.—General McClellan accepts, but evades the Platform.—General Frémont withdraws.—Success of the Union Army. —Mr. Lincoln's Popularity.—General McClellan steadily loses
