the wild treason of secession would have been impos sible? Intrinsic wealth of the republic, With the resources at the disposal of the republic, no one need be alarmed lest the United States may become unable to pay the interest on its own debt, or to reduce the principal to whatever point the public interest may indicate. There still remain immense resources which have not yet been called into contribution. The gold-bearing region of the United States stretches through nearly eighteen degrees of latitude, from British Columbia on the north to Mexico on the south, and through more than twenty degrees of longitude, from the eastern declivities of the Rocky Mountains to the Pacific Ocean. It includes two states, California and Oregon, four entire territories, Utah, Nevada, New Mexico, and Washington, and parts of three other territories, Colorado, Nebraska, and Dakotah. It forms an area of more than a million of square miles, the whole of which, with comparatively insignificant exceptions, is the property of the nation. It is rich not only in gold, but in silver, copper, iron, lead, and many other valuable minerals. Its product of gold and silver during the current year will not probably fall very much, if at all short of one hundred millions of dollars, and it must continue gradually, yet rapidly to increase. The deficiency of the current by loans. It has been already stated that the amount to be provided beyond resources available under exmay be supplied isting laws is, for the current fiscal year, $276,912,517 66, and for the ensuing year, $627,388,183 56. To provide these amounts loans must be negotiated. Without any issues of United States notes beyond the amount now authorized, it seems certain that loans for the whole amount required for the current year may be negotiated at fair rates; and it may be confidently hoped that before its close the resources of the coun CHAP. LXIII.] RESUME OF CHASE'S RECOMMENDATIONS. 575 try will be so well understood, and the restoration of its territorial integrity so well assured, that capitalists will not hesitate to supply whatever may be needed for the subsequent year. Resumé of Mr. Chase's recommendations. In conclusion, therefore, the secretary thus briefly sums up his recommendations-that whatever amounts may be needed beyond the sums supplied by revenue and through other indicated modes, be obtained by loans, without increasing the issue of United States notes beyond the amount fixed by law, unless a clear public exigency shall demand it. He recommends also the organization of banking associa tions for the improvement of the public credit, and for the supply to the people of a safe and uniform currency. And he recommends no change in the law providing for the negotiation of bonds; except the necessary increase of amount, and the repeal of the absolute restriction to market value and of the clauses authorizing convertibility at will. The great ability and power with which the money resources of the nation were wielded are Financial contrast of the acy. and the Confeder- sufficiently manifested by the tone and character of the foregoing measures. They stand in very strong contrast with the course that was taken in the Confederacy, which from the beginning descended rapidly down to the inevitable gulf of bankruptcy. But Mr. Chase's success in carrying the affairs of the nation forward was, in an eminent degree, due to the resolute manner in which he was seconded by the banking institutions of the country. He has himself rendered to them a well-merited acknowledgment: "The promptitude and zeal with which many of the existing (banking) institutions came to the financial support of the government in the dark days which followed the outbreak of the rebel lion is not forgotten. They ventured largely, and boldly, and patriotically on the side of the Union and the consti tutional supremacy of the nation over states and citizens. It does not at all detract from the merit of the act that the losses which they feared, but unhesitatingly risked, were transmuted into unexpected gains." That is a very strong government which every citizen, from the humblest laborer to the richest capitalist, is willing to risk his whole means to sustain. From the opinions thus lucidly expressed by this The tendency of wealth to concentration. great finance minister we may gather-though the war was as yet not half over—the inevitable tendency of wealth, like power, to concentration. The diffused financial resources of the nation were fast finding a focal point. From the resources of the Republic I now turn to its means of defense at the close of 1862. And, first, of the army. Mr. Cameron was the first Secretary of War in Mr. Lincoln's administration. He held that of State of the army. fice until the beginning of 1862, when he was succeeded by Mr. Stanton. In his report, made December 1st, 1861, Mr. Cameron represented the total strength of the army at 660,971 men. He says: War report of 1861. "In organizing this great army I was effectively aided by the loyal governors of the different states. . . . So thoroughly aroused was the national heart, that I have no doubt this force would have been swollen to a million had not the department felt compelled to restrict it. . . . It is said of Napoleon by Jomini that, in the campaign of 1815, that great general had, on the 1st of April, a reg ular army of 200,000 men. On the 1st of June he had increased this force to 414,000. The like proportion, CHAP. LXIII.] MR. CAMERON'S REPORT. 577 adds Jomini, 'had he thought proper to inaugurate a vast system of defense, would have raised it to 700,000 men by the 1st of September.' At the commencement of this Strength of the army at the beginning of the war. rebellion, inaugurated by the attack upon Fort Sumter, the entire military force at the disposal of this government was 16,006 regulars, principally employed in the West to hold in check marauding Indians. In April, 75,000 volunteers were called upon to enlist for three months' service, and responded with such alacrity that 77,875 were immediately obtained. Under the authority of the act of Congress of July 22d, 1861, the states were asked to furnish 500,000 volunteers to serve for three years or during the war, and by the act approved the 29th of the same month the addition of 25,000 men to the regular army of the United States was authorized. The result is that we have now an army of upward of 600,000 men. If we add to this the number of the discharged three-months' volunteers, the aggregate force furnished to the government since April last exceeds 700,000 men.. .. In view of the alacrity and enthu siasm that have been displayed, I do not hesitate to express the belief that no combination of events can arise in which this country will not be able not only to protect itself, but, contrary to its policy, which is peace with all the world, to enter upon aggressive operations against any power which may intermeddle with our domestic af fairs." Rapid development of the military power. in Europe. This report of the Secretary of War made a profound Effect of this report sensation in Europe. Already the unexpected military strength of the republic was a subject of solicitude in the English Parliament, and it was evident that any interference in American affairs would have to be conducted in a very guarded manner. II.-O o War report of 1862. effect: Strength of the Mr. Stanton, as Secretary of War, made a report, December 1st, 1862, to the following He stated that the armies acting under the authority of the United States in those departments that had been the scene of military operations were, during the past year (775,336), seven hundred and seventyarmy at that date. five thousand three hundred and thirty-six officers and privates, fully armed and equipped. Since the date of the returns this number had been increased to over eight hundred thousand men. He adds: "When the quotas are filled up, the force will number a million of men, and the estimates for next year are based upon that number. "From a survey of the whole field of operations, it is apparent that, whatever disasters our arms may have suffered at particular points, a great advance has nevertheless been made since the commencement of the war. When it began the enemy were in possession of Norfolk and every part of the Southern coast. They held the Mississippi from Cairo to New Orleans. Now the blockGreat military suc- aded ports of Charleston and Mobile alone cesses gained. remain to them on the sea-board, and New Orleans and Memphis have been wrested from them. Their possession of Vicksburg obstructs the Mississippi, but it is to them of no commercial use. Their strongholds on the Tennessee and Cumberland Rivers have been captured. General Andrew Johnson, as Military Governor of Tennessee, holds Nashville. The enemy have been driven from Kentucky, West Tennessee, Missouri, part of Arkansas, are fleeing before Grant in Mississippi, and all their hopes in Maryland are cut off. In commercial, political, and strategical points of view, more success has attended the Union cause than was ever witnessed upon so large a theatre in the same brief period |