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case in favor of my own government,” said Mr. Seward, “I must disavow its most cherished principles, and reverse and forever abandon its essential policy. If I maintain those principles and adhere to that policy, I must surrender the case itself.” Ile therefore declared that the persons held in military custoily in Fort Warren would be "cheerfully liberated.” Mr. Seward could not forbear to say that, if the safety of the Union required their detention, they would have been detained; to draw a contrast between the action of our government and that of Great Britain under similar circumstances; and to indulge in the irony that “ the claim of the British government is not made in a discourteous manner.”

Earl Russell was satisfied with the “reparation.” The prisoners were released, peace between the two nations was kept, the war feeling subsided, disunion sympathizers all over Europe were disgusted with Mr. Seward's pusillanimity, and at the South there was no attempt to disguise the disappointment felt at the result. The hopes excited in the South by the difficulty are well expressed in the language of Pollard's “History of the First Year of the War,” which says: “Providence was declared to be in our favor; the incident of the Trent was looked upon almost as a special dispensation; and it was said in fond imagination that on its deck and in the trough of the weltering Atlantic the key of the blockade had at last been lost." The same author continues: “The surrender was an exhibition of meanness and cowardice unparalleled in the political history of the civilized world.” Patriots may well be content with a decision which brought grief to their enemies everywhere, and raised the whole nation in the respect of Christendom.

On the second day of December, Congress met in regular session, and on the following day Mr. Lincoln sent in his annual message. The message opened with an allusion to the attitule of foreign governments, and a statement of the fact that, should those governments be controlled only by material considerations, they would find that the quickest and best way out of the embarrassments of commerce consequent upon

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American difficulties, would be rather through the maintenance, than the destruction, of the Union. It was undoubtedly with reference to the excitement then existing concerning the Trent affair that he penned the sentence: “Since, however, it is

apparent that here, as in every other state, foreign dangers necessarily attend domestic difficulties, I recommend that adequate and ample measures be adopted for maintaining the public defenses on every sidle.”

. The message announced the financial measures of the gove ernment to have been very successful; recommended a re-organization of the Supreme Court, the machinery of which the country had outgrown; suggested a collification or digest of the statutes of Congress, so as to reduce the six thousand pages upon which they were printed to the measure of a volume; indicated his wish that the Court of Claims should have power to make its decisions final, with only the right of appeal on questions of law to the Supreme Court; asked for increased attention on the part of Congress to the interests of agriculture; expressed his gratification with the success of efforts for the suppression of the African slave trade; and broached a plan for colonizing such slaves as had been freed by the operation of the confiscation act, passed on the previous sixth of August, on territory to be acquired. The progress made by the feileral armies, and by his own careful and moderate management of affairs in the border states, is shown in the following passage:

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“ The last ray of hope for preserving the Union peaceably, expired at the assault upon Fort Sumter; and a general review of what has occurred since may not be umprofitable. What was painfully uncertain then, is much better defined and more distinct now, and the progress of events is plainly in the right direction. The insurgents confidently claimed a strong support from north of Mason and Dixon's line; and the friends of the Union were not free from apprehension on the point. This, however, was soon settled definitely, and on the right side. South of the line, noble little Delaware led off right from the first Maryland was made to seem against the Union. Our soldiers were assaulted, bridges were burned, and railroads torn up within her limits; and we were many days, at one time, without the ability to bring a single regis

inent over her soil to the capital.. Now her bridges and railroads are repaired and open to the Government; she already gives seven regiments to the cause of the Union, and none to the enemy; and her people, at a regular election, have sustained the Union by a larger majority and a larger aggregate vote than they ever before gave to any candidate or any question. Kentucky, too, for some time in doubt, is now decidedly and, I think, unchangeably ranged on the side of the Union. Missouri is comparatively quiet, and, I believe, can not again be overrun by the insurrectionists. These three states of Maryland, Kentucky and Missouri, neither of which would promise a single soldier at first, have now an aggregate of not less than forty thousand in the field for the Union; while of their citizens, certainly not more than a third of that number, and they of doubtful whereabouts and doubtful existence, are in arms against it. After a somewhat bloody struggle of months, winter closes on the Union people of Western Virginia, leaving them inasters of their own country.

“ An insurgent force of about fifteen hundred, for months dominating the narrow peninsular region constituting the counties of Accomac and Northampton, and known as the Eastern Shore of Virginia, together with some contiguous parts of Miryland, have laid down their arms; and the people there have renewed their allegiance to, and accepted the protection of the old fag. This leaves no armed insurrectionist north of the Potomac, or east of the Chesapeake.

" Also, we have obtained a footing at each of the isolated points on the southern coast, of Ilatteras, Port Royal, Tybee Island near Savannah, and Ship Bland; and we likewise have some general accounts of popular movements in behalf of the Union in North Carolina and Ten

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** These things demonstrate that the cause of the Union is advancing steadily and certainly southward."

In the development of the insurrection, Mr. Linco'n detected a growing enmity to the first principle of popular government—the rights of the people. In the grave and well consilereil public documents of the rebels lie founil labored arguments to prove that “large control of the people in government is the source of all political evil. Monarchy itself,” he allus, " is sometimes hinted at as a possible refuge from the power of the people.” Proceeding from this, Mr. Lincoln said:

" It is not needed, nor fitting here, that a general argument should 'be made in favor of popular institutions; but there is one point, with its connections, not so hackneyed as most others, to which I ask a brief

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attention. It is the effort to place capital on an equal footing with, if not above, labor, in the structure of the government. It is assumed that labor is available only in connection with capital; that nobody labors unless somebody else, owning capital, somehow by the use of it induces him to labor. This assumed, it is next considered whether it is best that capital shall hire laborers, and thus induce them to work by their own consent, or buy them, and drive them to it without their consent. Ilaving proceeded so far, it is naturally concluded that all laborers are either hired laborers or what we call slaves And further, it is assumed that whoever is once a hired laborer, is fixed in that condition for life.

“Now, there is no such relation between capital and labor as assumed; nor is there any such thing as a free man being tixed for life in the con. dition of a hired laborer Both these assumptions are false, and all inferences from them are groundless.

* Labor is prior to and independent of capital. Capital is only the fruit of labor, aud could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration. Capital has its rights, which are as worthy of protection as any other rights. Nor is it denied that there is, and probably always will be, a relation between labor and capital, producing mutual benefits. The error is in assuming that the whole labor of the community exists within that relation. A few men own capital, and those few avoid labor themselves, and, with their capital, lire or buy another few to labor for them. A large majority belong to neither class-neither work for others, nor have others working for them. In most of the southeru states, a majority of the whole people of all colors are neither slaves nor masters; while in the northern, a large majority are neither hirers nor hired Men, with their families—wives, sons, and daughters—work for themselves, ou their farnis, in their houses, and in their shops, taking the whole product to themselves, and asking no favors of capital on the one hand, nor of hired laborers or slaves on the other. It is not forgotten that a considerable number of persons mingle their own labor witlı capital--that is, they labor with their own hands, and also buy or hire others to labor for them; but this is only a mixed, and vot a distinct class. No principle stated is disturbed by the existence of this mixed class

“ Again as has already been said, there is not of necessity any such thing as the free hired laborer being fixed to that condition for life. Many independent men everywhere in these states, a few years back in their lives, were hired laborers. The prudent, penniless beginner in the world, labors for wages awhile, saves a surplus with which to buy tools or land for himself, then labors ou his owu account another while, and at length hires another new beginner to help him This is the just and generous and prosperous system, which opens the way to all, gives

hope to all, and consequent energy and progress, and improvement of condition to all. No men living are more worthy to be trusted than those who toil up from poverty-none less inclined to take or touch aught which they have not honestly earned. Let them beware of surrendering a political power which they already possess, and which, if surrendered, will surely be used to close the door of advancement against such as they, and to fix new disabilities and burdens upon them, till all of liberty shall be lost.”

Aside from the bills passed for sustaining the war, and sustaining the President in his mode of and means for suppressing the rebellion, very little important action was taken by this session of Congress, that did not relate to slavery. The question of “arbitrary arrests,” of which the enemies of the President made loud complaint, came up, and Mr. Lincoln was sustained in the House by a vote of one hundred and eight to twenty-six. A provision was made for the issue of legaltender notes, for increasing the internal revenue, and establishing a basis for the payment of interest on loans, in accordance with the policy of Mr. Chase, the distinguished Secretary of the Treasury; and a confiscation act was passed, more stringent than its predecessor.

We now enter upon a review of that series of measures and movements which culminated in the overthrow of slavery; and, as Mr. Lincoln has been assailed on one side for being too slow, and on the other for being too precipitate, these movements and measures deserve careful consideration.

If there is one thing that stands out more prominently than any other in Mr. Lincoln's history, it is his regard for the Constitution and the laws. Especially was this the case in relation to that clause of the Constitution which protected slavery, and all the laws by which the relation of master and slave was preserved. This was not attributable to his love of slavery, for he hated it; but it was because that on this point only was he suspected, and on this point only was there any sensitiveness in the nation. He voluntarily and frequently declared that he considered the slaveholders entitled to a fugitive slave law. By the Constitution he was determined to stand; yet there is evidence that from the first he considered

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