forbade sales of exchange for specie at more than ten days' time, at any place except the individual office of the banker, and in point of fact greatly embarrassed the business operations of bankers, since they could not tell in how far they might be exposed, not simply to the danger of infringing on the law, but to the complaints of informers, called into being by the enactment, which bestowed upon them half the fine. The law also, by limiting the time within which a contract for exchange might run, cut off a large amount of ordinary shipping business done in New York for Western account, and which, in the usual course of business, required at least fifteen days to perfect arrangements between Chicago and New York. These difficulties, of course, caused a rise in both exchange and gold. The latter rose to 285 and 290 on July 1st. The bill had, as we have stated, caused a dead-lock in the foreign exchange business, on account of the provisions above referred to. It is well known that a very large proportion of the ordinary business payments of the people of this country, and of every civilized commercial community, are, in modern times, settled by certified checks, and similar financial expedients. To forbid the use of these certified checks, in any important department of legitimate business, would be attended with the most disastrous results, both to the enterprise of private individuals and to the credit of the public Treasury. The construction given to the bill on this point, by the Treasury Department, will be found in the following communication from the Secretary : "TREASURY DEPARTMENT, WASHINGTON, "JOHN J. CISCO, Assistant Treasurer, New York: 1864. "I transmit an opinion of the Solicitor of the Treasury upon certain questions under the gold act, and concur in his opinion. "S. P. CHASE, Secretary of the Treasury." "TREASURY DEPARTMENT, SOLICITOR'S OFFICE, 27, 1864. "SIR:-I have the honor to acknowledge the receipt of your letter dated to-day, submitting to me the following questions: "The act to prohibit certain sales of gold and foreign exchange, approved June 13th, 1864, requires payment in full of the agreed price of gold or bullion purchased on the day on which the contract is made in United States notes or national currency, and not otherwise. Can such payment be made by check for the amount of the purchase money in United States or national currency; or can it be made only by manual delivery of the notes or currency by buyer to the seller? "Second. The same act prohibits contracts for the purchase or sale and delivery of foreign exchange except on conditions of immediate payment in full of the agreed price thereof on the day of delivery in United States notes or national currency. Would a payment for such exchange in gold coin of the United States be valid or otherwise? "In reply to the first inquiry, I have to say that I have no doubt that the delivery of a bona fide check for the amount of the purchase money, in United States notes or currency, drawn against such notes or currency, actually at the present credit of the drawer, and which if presented immediately would be so paid, is a payment within the meaning of the act. In regard to the second question, my opinion is that a payment for exchange in gold coin of the United States is a legal and valid payment. "I have the honor to be, with high respect, "EDWARD JORDAN, Solicitor of the Treasury. "To Hon. S. P. CHASE, Secretary of the Treasury." On the strength of this opinion, the bankers, who had before refused to engage in any transaction liable to objection under the gold act, ventured cautiously forward, and thus aided in quieting the public excitement. The gold bill was finally repealed by a vote of twenty-four to thirteen in the Senate, and eighty-eight to twenty-nine in the House, June 30. The same day Mr. Chase resigned. The results of the financial operations for the fiscal year ending June 30, 1864, were as follows: Thus the expenses had exceeded the revenue by six hundred and four million six hundred and one thousand three hundred and seventyone dollars, which was borrowed, on Five-twenty bonds, act Feb. 25, 1862.. Fractional currency, exceeding amount redeemed.. Twenty years six per cents., act March 3, 1863.... Three year six per cent. compound-interest notes. Whole amount. Of which amount there was applied to repayment of public debt..... 112,527,526.05 Which left applicable to expenditures.. ..... $618,114,884.92 There remained on hand fourteen million dollars at the close of the year. The miscellaneous receipts were composed mostly of the premium on gold sold, and the commutation money of conscripts under the first conscription act. The receipts of gold for duties, and the interest paid, were as follows: Receipts from Customs.. Excess of receipts... .$102,316,153 53,685,421 $48,630,732 This amount under the law was to be applied towards the establishment of a sinking fund. Instead of that, however, the gold was sold, and the premium obtained, $19,298,896, was carried to the receipts under the miscellaneous head. An important revolution had been effected in the banking system of the country by the introduction of Mr. Chase's National Banking scheme, which authorized the establishment of three hundred million dollars of bank capital, to issue three hundred million dollars of bank-notes not convertible into specie, but redeemable in legal-tender notes; the bank-notes to be a legal tender for all Governinent dues except customs, and secured upon United States bonds. The advantages held out by this law were not at first appreciated, but in 1864, national banks began to be rapidly organized, and by the close of the first Administration of Mr. Lincoln the whole amount of capital authorized was nearly engaged, and one hundred and eleven million dollars of the notes issued. A law taxing State bank-notes ten per cent. was intended to induce State banks to convert themselves into Ñational banks, and thus simplify and consolidate the whole banking system of the country. The tendency has accordingly been in that direction. Mr. Chase was succeeded by Mr. William Pitt Fessenden, Senator from Maine, and chairman of the Senate Fiñance Committee. The Government paper was worth thirty-five cents per dollar, and the revenues were not large from taxes; but the revised law coming then into operation promised to increase the amount. There was also a five per cent. extra income tax levied in October on the incomes of 1863. The customs had begun to decline, but the low price of the Federal six per cent. bonds, selling then in London at thirty-five cents. per dollar, and therefore giving seventeen per cent. interest on the investment, was beginning to attract the attention of capitalists in Europe, and sales became large, thereby checking the drain for gold in the payment of goods imported. By the laws in force on the day Mr. Fessenden assumed office, he had authority to borrow on the credit of the United States the amounts following, to wit: First. Under the act of March 3d, 1863, so much of $75,000,000 advertised previously to June 30th, 1864, as had not been awarded to bidders, $32,459,700. Second. Under the act of March 3d, 1864, so much as had not been subscribed for and paid into the treasury, viz.: $127,603,520. Third. Under the act of June 30th, 1864, $400,000,000. Fourth. Amount of Treasury notes issued under former acts which had been redeemed and cancelled, and which the Secretary was authorized to replace by notes issued under the act of June 30th, 1864, $62,191,400. Total available resources under laws authorizing loans, $622,284,625. To this may be added the actual balance in the treasury, July 1st, 1864, $18,842,588 71. Total, $641,127,213 71. Thus provided with funds, he did not attempt any change from the course pursued by Mr. Chase. The policy of the department was, as far as practicable, to avoid the issues of legal tender by substituting for them bonds. The sales of the latter abroad facilitated this movement. Mr. Fessenden retained power to the close of March, 1865, in which term the debt had increased from $1,733,810,119 to $2,423,437,001, or $689,626,882, being at the rate of $2,500,000 per day. Of this increase, $74,000,000 was legal tender, $260,000,000 gold bonds, $64,000,000 arrears to creditors, and the remainder paper interest bonds. The whole progress of the debt was as follows: The course of the gold premium from the first issues of the legal tender to March, 1865, was monthly as follows: January March April May. July.. 1864. 1865. Highest Lowest. Highest. Lowest. Highest. Lowest. Highest. Lowest. .... .189 - 164 -1674 .1034 @ 1024.....156 -143†...........195 .1094 @ 103.....1494-140.....252 @ 167 ...120 @ 1097...........145 — 133....290 @ 229 August.........115 } @ 112...........128 @ 1224... September.......1244 @ 1164.....142 } @ 1277.. October..... .136 @ 1224.....1564 @ 142. November...... .1334 @ 1294. December............... .133% @ 130. 261 @ 231 .2541 @ 185 2221 @ 189 .1544 @ 1434. .260 @ 209 .2434 @ 211 CHAPTER LXXI Sherman Prepares to Cross Georgia.-Composition of Army.-Marching Orders.-Combat at Griswoldville.-Appeal to the People of Georgia.-Milledgeville Reached.Army at Louisville.-Combat with Wheeler.-March to Savannah.-Communicates with the Fleet.-Fort McAllister.-Evacuation of Savannah-Sherman's Dispatches. -Wilmington Expedition.-Fort Fisher.-Powder Ship.--Bombardment.-Failure.→ Return to Hampton Roads.-Co-operation from Plymouth. WHEN Sherman paused in his pursuit of Hood, he remained several days at Gaylesville, in Northern Alabama, and then with the Fourteenth, Fifteenth, Sixteenth, and Seventeenth Corps, the Fourth and Twenty-third having been sent to Tennessee, returned to Atlanta, to commence preparations for a march through Georgia to the seacoast. Hood had made the mistake of going north into Tennessee, without any very definite object, and there was no force south of Atlanta to present any opposition to the proposed march of Sherman. Beauregard was indeed at Corinth, but with little prospect of being able to make head against the well-appointed army under the control of the Union leader. The army with which Sherman left Atlanta was composed of four corps of infantry, one division of cavalry, four brigades of artillery, and two horse-batteries. The infantry consisted of the Fourteenth Corps, General Jeff. C. Davis; the Fif teenth, General Osterhaus (Logan being absent); the Seventeenth, General Blair; and the Twentieth, General Slocum. The cavalry was commanded by Kilpatrick. Finally, there was a full brigade of artillery for each corps, and one battery of horse artillery for the cavalry, numbering in all about sixty-five thousand men. The two divisions of the Sixteenth Corps were divided between the Fifteenth and Seventeenth. The corps were quite full, many had new regiments added, and the men, under the recent calls for troops, had come in to restore the old regiments to their maximum. The artillery arm was |