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the employment of the force at hand had The report of the Secretary of the embraced three distinct lines of naval Treasury-delayed for a short time beoperations-namely, the blockade, the yond the opening of Congress—was anxfitting out of special expeditions, and iously looked for. In his previous rethe pursuit of piratical cruisers on the port, at the July session, he had calcuhigh seas. The first required "the clos- lated from the estimates of the several ing of all the insurgent ports along the departments, upon an expenditure for coast line of nearly 3,000 miles, in the the year beginning June, 1861, of about form and under the exacting regulations three hundred and eighteen and a half of an international blockade, including millions, eighty millions of which he exthe naval occupation and defence of the pected to receive from the income of the Potomac river, from its mouth to the year and the remainder by a series of Federal Capital, as the boundary line loans.* between Maryland and Virginia, and Comparing the income realized with also the main commercial avenue to the that expected from Custom-house duties principal base of our military opera- the Secretary found a considerable detions." The difficulty of guarding the ficiency. He had calculated in the preshallow waters of the coast, with the in- vious June upon an income for the year ner channels of communication, and the from this source of fifty-seven millions. energy of the Confederates in endeavor- The returns for the first quarter showed ing to supply their wants from abroad, that the aggregate for the year would were admitted. The task, however, had not greatly exceed thirty-two millions, been faithfully pursued and with no in- The duties imposed by Congress had considerable degree of success, one hun- been lighter than he had recommended, dred and fifty-three vessels having been and he found “another and perhaps captured sailing under various flags, most more potential cause of reduced receipts of them while attempting to violate the in the changed circumstances of the blockade. Something was expected from country, which have proved, even bethe “stone fleet,” or vessels laden with yond anticipation, unfavorable to foreign stone, sunk at Ocracoke Inlet and off the commerce." More than half a million harbor of Charleston, as "the most eco- was to be deducted from the estimate of nomical and satisfactory method of in- the land receipts. Including the direct terdicting commerce at those points.” tax imposed upon the States of twenty The command of Flag-Officer Stringham millions, the aggregate of revenue from on the Atlantic Coast had been divided. all sources for the year might be estiCaptain Louis M. Goldsborough having mated at about fifty-four and a half milbeen appointed to guard the shores of lions, about twenty-five and a half milVirginia and North Carolina, while the lions less than the estimate of July. residue of the Southern Coast was in- The system of loans and issue of Treastrusted to Captain Dupont. Captain Mc- ury notes recommended in the SecreKean had succeeded Captain Mervine in tary's previous report, or adopted by the command of the Gulf Squadron. Due Congress, had thus far yielded to the honor was paid the achievements at Hat- Government about one hundred and teras and Port Royal ; Captain Wilkes ninety-seven and a quarter millions of was handsomely complimented for his dollars, the loans having been chiefly seizure of the Ambassadors, and gener- negotiated through the banking institually the “intrepidity, courage and loy- tions of the Atlantic cities without the alty of our naval officers, soldiers, and contemplated appeal to European capimarines” were pronounced “never more talists. The calculations for the year marked than in this rebellion."

* Ante, vol. i. p. 361-3.

had been originally made on an estimate demands of the nation during the war, of a quarter of a million of volunteers new loans would of course be required. in the field and a regular army of about In endeavoring to solve the problem of fifty thousand ; but as this number had “ obtaining the necessary means without been so greatly increased by the order unnecessary cost," the Secretary, lookof Congress, additional appropriations ing at the vast aggregate paper currency were of course necessary to meet the of the country, devised a plan for makexpenditures. Two hundred millions ing this, which was in reality “a loan were asked for to meet the deficiency without interest from the people to the ---making the outlay for the year, from banks," directly available to the wants June, 1861, to June, 1862, about five of the national government. In fact he hundred and forty-three and a half mil. was disposed to consider the issue of lions.

bank notes by local institutions under To meet or facilitate the collection of State laws as prohibited by the Constituthis sum the Secretary enjoined re- tion ; while the authority certainly betrenchment and reform with a rigorous longed to Congress " under its powers to system of responsibility in the national lay taxes, to regulate commerce, and to expenditure, justly representing that any regulate the value of coin, to control the saving effected in this way would be credit circulation which enters so largely "worth more in beneficial effect and in- into the transactions of commerce and fluence than the easiest acquisition of affects in so many ways the value of equal sums even without cost or liability coin.” There were two methods, it was to repayment.” He renewed his pre- urged, by which the end proposed might vious suggestion that the property of be attained, ---one by the withdrawal of rebels both in the loyal and insurgent the notes of private corporations and States should be made to pay, in part at the issue in their stead of United States least, the cost of the rebellion. “Rights notes, payable in coin on demand ; the to services," he added, “under State other contemplating "the preparation laws, must, of necessity, form an excep- and delivery, to institutions and association to any rule of confiscation. Per- tions, of notes prepared for circulation sons held by rebels under such laws, to under national direction, and to be seservice as slaves, may, however, be just- cured as to prompt convertibility into coin ly liberated from their constraint and by the pledge of United States bonds made more valuable in various employ- and other needful regulations." The sements, through voluntary and compen-cond plan was recommended as the more sated service, than if confiscated as advantageous. It would provide a sound, subjects of property.” Provision by di- convenient, uniform currency, in place of rect taxation to the amount of fifty mil- a very defective one in many instances, lions, in addition to forty millions ex- and it would promote the security of the pected from customs, was recommended Union by the distribution of the nationto supply an adequate sum for ordinary al stocks throughout the country. The expenditures, the payment of interest on notes thus issued should be receivable the public debt, and for a sinking fund for all government dues except customs, for the gradual extinction of the princi- which would be still payable in gold. pal. This would require special taxes This scheme, if carried out, would conon stills, distilled liquors, tobacco, bank tribute at once one hundred and fifty notes, carriages, legacies, paper eviden- millions, the estimated amount of bank ces of debt, and instruments for convey- circulation in the loyal States, to the naance of property and other like subjects tional relief. of taxation. For the rapidly increasing Included in Mr. Chase's report was a



calculation of the probable wants of the under Generals Lee and Floyd, thirty fiscal year ending in June, 1863, at about thousand. In Missouri, under Price and four hundred and seventy-five millions, McCulloch. sixty thousand. In Kento provide for which, with the supply of tucky and Tennessee, under General Althe deficiencies of the previous year, bert S. Johnston, with his headquarters at would necessitate an aggregate of $655,- Nashville, an aggregate of one hundred 000,000 in loans. On the first day of and twenty-five thousand. This includJuly, 1860, the public debt was less than ed General S. B. Buckner's command at sixty-five millions ; on the first day of Bowling Green in Kentucky, of twenty July, 1863, supposing the war to con- thousand, and that of Generals Polk and tinue, it was estimated it would reach Pillow at Columbus and Hickman of nearly nine hundred millions. "It is fifteen thousand. The defences of the earnestly to be hoped, however," was lower Mississippi, including New Orthe language of the report, "and in the leans, were maintained by some sixty judgment of the Secretary, not without thousand. To Charleston, Savannah, sufficient grounds, that the present war Mobile, and Galveston, were assigned may be brought to an auspicious termi- some forty thousand.** nation before midsummer. In that event In the absence of official returns, not the provision of revenue by taxation, accessible at the North at the time, such which he has recommended, will amply an estimate, of course, could only be suffice for all financial exigencies, with conjectural. Accepting it, however, as out resort to additional loans; and not a rough calculation, subject to correction, only so, but will enable the government there would probably remain a force sufto begin at once the reduction of the ex- ficient, added to that reported by Secreisting debt.” Such was the expectation tary Cameron, to raise the aggregate of of Secretary Chase in regard to the sup- men enlisted or in arms in all parts of pression of the Rebellion in the month the country to the number of more than of December, 1861.

a million. What use could be made of We have seen the returns of the this immense host, the equipment of Union army, by the Secretary of War, which had largely drawn upon the workmade to exceed six hundred thousand shops of Europe, and supplied for the men, from which, however, a liberal de- last three months the chief manufacturduction was to be made to reduce the ing industry at home? Would it be number to the force ready for service in concentrated at various points, on the the field. An estimate made at this time Potomac, in Kentucky, on the Mississipby a Northern journal, with a show of pi, the Gulf of Mexico, and meet in particularity, set forth the Confederate deadly conflict on the soil of the Southforce in the field at nearly five hundred ern States, or would it be held spellthousand. To the Department of the Po- bound in mutual defiance till the sober tomac, under the command of General Jo- second thought of the insurgents would seph E. Johnston, with his headquarters prevail, arrest the impending desolation, at Manassas Junction, Major-General and bring both portions of the nation Gustavus W. Smith commanding the together in fraternal unity under the old left-wing, and General Beauregard the flag ? right, were assigned one hundred and Such a result would at any moment fifty thousand men. To the Department have been welcomed by the President, of the Chesapeake, with General Huger the Cabinet, the Northern States, and in command at Norfolk and Portsmouth, the whole civilized world ; but the deand General Magruder at Yorktown, cision of the matter rested with the inforty thousand.

In Western Virginia,


* New York Herald, December 7, 1861.

surgents, and they had shown no dispo- and peace under the same government. sition to bring about so acceptable an We can never entertain friendly feelings event. Their leaders had resolved upon for a people who have ruthlessly shed Independence, and they would fight for Southern blood upon Southern soil in so it to the end. The voice of the Confed-execrable a war. They have shown erate Government was clear enough on themselves our worst enemies, and such this point, and there was no lack of zeal we hold them to be. The separation in the State authorities to second the that has taken place has been signalized resolution. Governor Letcher, of Vir- in blood, and it ought to be, and I ginia, a State which had most to lose by trust will be, a permanent separation. the continuance of the conflict, may speak Reconstruction is not desirable, and for the rest. In his message to the leg- even if it were, it is now an impossiislature of his State at the time of which bility." we write, the beginning of December, he of a similar tone, stronger, if possible, reviewed the condition of affairs. With in its contempt of the North, was the a coolness and imperturbability belong- language held in South Carolina the preing to the practiced politician, he spoke vious month to the legislature by Govas the representative of a cause which ernor Pickens. " As far as the Northhad only to be asserted to be successful. ern States are concerned, their GovernTaking for granted the proposition that ment is hopelessly gone, and if we fail, it was the intention of the Government with all our conservative elements to at Washington to subjugate the South, save us, then, indeed, there will be no and coerce its people to remain in a hope for an independent and free repubUnion, " the great aims and objects of lic on this continent, and the public mind which,” he asserted, “had failed,” he will despondingly turn to the stronger maintained that the struggle which had and more fixed forms of the Old World. been begun should not terminate "until Clouds and darkness may rest upon our our enemies shall recognize fully and beloved country, but if we are true to unconditionally the independence of the ourselves and just to others, looking Southern Confederacy.” Whatever men with confiding faith up to that Provior money should be wanted, he promised, dence who presides over the destinies of should be cheerfully furnished. “There inen and governments, we will surely can be and there will be no compromise. triumph and come out of our trials a We can never again live in harmony wiser and a better people."



On the 9th of November, by a new ar- | Tennessee, while the portion of Kentucky rangement at Washington of the military west of the Cumberland was included Districts of the West, Brigadier-General in the Department of the Missouri asDon Carlos Buell was placed in charge signed to General Halleck. General of the Department of the Ohio, consist- Buell, a native of Ohio, about forty-two ing of the States of Ohio, Michigan, In- years of age, was a graduate of West diana, the portion of Kentucky east of Point of 1841, appointed to the 3d Inthe Cumberland River, and the State of fantry, and a few years after distinguish



ed himself in the war with Mexico, where eral Hardee from Southeastern Missouri, he had risen from 1st Lieutenant to the when that officer superseded General brevet rank of Major. He was in the Buckner in his command. General Polk engagements at Monterey, Cerro Gordo, also received some additions to his force, Contreras, and was wounded at Churu- already large, while General Zollicofler, busco. He subsequently filled the office having secured the pass at Cumberland of Assistant Adjutant-General. He had | Gap, was taking up an important posibeen actively engaged in the organiza- tion in the midst of the rich mineral and tion of the army, and in command on agricultural district on the upper waters the Potomac since the breaking out of of the Cumberland. On the 16th of Dethe Rebellion. His appointment as the cember, from his camp at Birch Grove, successor of General Sherman, was hail- he addressed a Proclamation to the Peoed as the promise of an energetic and ple of Southeastern Kentucky, assuring decisive campaign.

them that he came not to war upon KenThe inevitable moment of action was tuckians, but to repel“ those armed Northnow approaching. The appointment in ern hordes who were attempting the subOctober of the Confederate general, jugation of a sister Southern State." Aloert 3. Johnston, to the Department of Adroitly turning the evils he himself the Mississippi, had infused new vigor was creating to the charge of the supinto the operations of the rebels on the porters of the Government, whose whole Kentucky frontier. This officer was a object was the preservation of the peacenative of Kentucky, now in his fifty- ful relations he was seeking to destroy, ninth year. He had been educated at this ruthless invader, whose path was West Point, and was engaged in the marked by devastation, proclaimed that Black Hawk war, acting as Adjutant- he had come to “open again the rivers, General when President Lincoln was a restore the ancient markets and the acCaptain of Volunteers. He resigned his customed value of lands and labor.'' commission at the close of the war, and with a consciousness of past misdeeds, resided first in Missouri, afterwards in he admitted that his force had been reTexas. On the war breaking out in presented as murderers and outlaws. that region he entered again into mili- * We have come to convince you," he tary service, and became Secretary of said, " that we truly respect the laws, War. When the country was annexed, revere justice and mean to give security and war with Mexico followed, he raised to your personal and property rights." a partisan troop and accompanied Gen- With a liberal employment of the maxeral Taylor to Monterey. When peace im that all is fair in war, in other words, came he received from the Government with a total disregard of truth, he asthe office of Paymaster. Jefferson Davis serted that the openly avowed object on when Secretary of War made him Colo- the part of the North was to set the nel of the 2d Cavalry, and he was subse - slaves at liberty, while “the ensuing quently appointed to the command of the step will be to put arms in their hands Southwestern Military District. Presi- and give them political and social equaldent Buchanan placed him at the head ity with yourselves.

We saw these of the grand military expedition to Utah, things,” he added, “in the beginning, from which he returned to join the Re- and are offering our heart's blood to bellion.

avert those dreadful evils which we Calling together considerable bodies saw the Abolition leaders had deliberof troops from various quarters, General ately planned for the South. Johnston now strengthened the force at must have the ballot or none; all men Bowling Green by the division of Gen-I must have the bullet or none,' said Mr.

All men

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