Chase confessed to a receipt of but five millions per quarter from the "Morrill" tariff, showing that at this rate of the receipt of customs, the income of the government would be twenty millions per year against nearly five hundred millions of prospective outlay.

It was proposed in this financial exigency to levy specific duties of about thirty-three per cent. on coffee, tea, sugar, molasses, and syrup, which might yield twenty millions a year; it was hoped by some modification of the Morrill tariff, with respect to other articles, to increase its productiveness from twenty to thirty-seven millions; the revenue from the sale of public lands was estimated at three millions; and it was timidly proposed that a tax should be levied upon real property of one-third or one-fifth of one per cent., to produce twenty millions additional. Thus by means of—

The Northern government proposed to eke out the means of meeting its ordinary expenses, leaving the monstrous balance of four hundred millions of dollars to be raised by a sale of bonds.

The financial complications of the government of Mr. Lincoln were in striking contrast with the abundant and easy means which the Southern Confederacy had, at least so far, been able to carry on the war. The latter had been reduced to a paper currency, but it had for the basis of its currency the great staple of cotton,* which in the shape of a produce loan was practically pledged to the redemption of the public debt.

The whole cotton crop of America, in 1860, was 4,675,770 bales and of this, 3,697,727 bales were exported, and 978,043 bales used at home. England alone took 2,582,000 bales, which amounted to about four-fifths of her entire consumption. The cotton-fields of the Southern States embrace an area of 500,000 square miles, and the capital invested in the cultivation of the plant amounts to $900,000,000. Seventy years ago, the exports of our cotton were only 420 bales—not one-tenth of the amount furnished by several countries to England. Now, the South furnishes five-sevenths of the surplus cotton product of the entire world

Prospects were entertained of a speedy raising of the blockade, the disappointment of which, at a later day, drove the Con federacy to other expedients of revenue, in a war tax, &c. ; but, at the time of the comparison of the financial condition of the two governments, the Confederate currency was accounted quite as good as gold, as the cotton and tobacco once in the market would afford the Southern government the instant means to discharge every cent of its indebtedness.

The Federal Congress commenced its work in a spirit that essentially tended to revolutionize the political system and ideas of the North itself. It not only voted to Mr. Lincoln the men and supplies he asked for, but the first days of its session were signalized by a resolution to gag all propositions looking towards peace, or any thing else than a prosecution of the war; by another, to approve the acts done by the President without constitutional authority, including his suspension of the habeas corpus; and by the introduction of a bill to confiscate the property of "rebels."

The pages of history do not afford a commensurate instance of the wide opposition in the social and political directions of two nations who had so long lived in political union and intercourse as the North and the South. While the latter was daily becoming more conservative and more attached to existing institutions, the North was as rapidly growing discontented,

* A type of the conservatism of the Southern revolution-its attachment to the past-was vividly displayed in the adoption of its national ensign, a blue union with a circle of stars, and longitudinal bars, red, white, and red, in place of "the stripes" of the flag of the old government. The present Confederate flag was balloted for in the Provisional Congress, and was selected by a majority of votes out of four different models. At the time of the early session of Congress at Montgomery, the popular sentiment was almost unanimous, and very urgent, that the main features of the old Federal Constitution should be copied into the new government, and that to follow out and give expression to this idea, the flag should be as close a copy as possible of the Federal ensign. A resolution was introduced in the Provisional Congress to the effect that the flag should be as little different as possible from that of the Federal government; which resolution was vigorously opposed by Mr. Miles, of South Carolina, who was then chairman of the Flag Committee. The design recommended by Mr. Miles, but voted down, has since been adopted as the battle flag of Generals Johnston and Beauregard. It is a blue saltier (or Maltese cross), with inner rows of stars, on a red field-the emblem of the saltier (saltere, to reep) being appropriately that of progress and power. The two other competing designs, from which our present flag was selected, were, one, an almost

restless, radical, and revolutionary. The people of the North had passed the stage of pure Democracy, and inaugurated military despotism. They, in effect, had changed their form of government, while vainly attempting to preserve their territorial ascendency. They charged the South with attempting revolution, when it was only fighting for independence; while they, themselves, actually perpetrated revolution rather than forego the advantages of a partial and iniquitous Union. The South, in the midst of a war of independence-a war waged not to destroy, but to preserve existing institutions-was recurring to the past, and proposing to revive conservative ideas rather than to run into new and rash experiments.

The war had already developed one great moral fact in the North of paramount interest. It was the entire willingness of the people to surrender their constitutional liberties to any government that would gratify their political passions.

This peculiarity of the condition of Northern society, was more significant of its disintegration and revolutionary destiny than all the other circumstances and consequences of the wai combined, in loss of trade, prostration of commerce, and poverty and hunger of the people. It was the corruption of the public virtue. The love of constitutional liberty was degraded to political hatreds. While these were gratified, the Northern people were willing to surrender their liberties to their panderers at Washington. Without protest, without opposition, in silent submission, or even in expressions stimulating and encouraging the despot who stript them of their rights, to still further excesses, they had seen every vestige of constitutional liberty. swept away, while they imagined that their greed of resentment towards the South was to be satisfied to its fill. They had seen the liberties of the people strangled, even in States remaining in the Union. They had seen the writ of habeas corpus denied, not only by the minions of Abraham Lincoln in Maryland, but by the commanding officers of Forts Hamilton and Lafayette. They had seen, not only the rights of free speech, but the sanctity even of private correspondence, violated by the seizure

exact reproduction of the Federal stars and stripes, the only variation being that of a blue stripe, and the other a simple blue circle or rim, on a red field. The consideration that determined the selection of the present flag was ite Emilarity to that of the old government.

of dispatches in their own telegraph offices. They had seen the law of the drum-head not only established in Baltimore, but measures to subvert their own municipal liberties inaugurated by a system of military police for the whole Federal Union. They had suffered without protestation these monstrous viola tions of the Constitution under which they professed to live. They had not only suffered, but had indorsed them. They had not only done this, but they had applauded in this government of Abraham Lincoln violations of honor, morality, and truth, more infamous than excesses of authority.

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CHAPTER IV.

The "Grand Army" of the North.-General McDowell.-The Affair of Bull Kon.An Artillery Duel.-THE BATTLE OF MANASSAS.—" On to Richmond."-Scenery of the Rattle-field.-Crises in the Battle.-Devoted Courage of the Confederates.-THE ROUT. -How the News was received in Washington.-How it was received in the South.General Bee.-Colonel Bartow.-The Great Error.-General Johnston's Excuses for not advancing on Washington.-INCIDENTS OF THE MANASSAS BATTLE.

THE month of July found confronting the lines of the Potomac two of the largest armies that this continent had ever seen. The confidence of the North in the numbers, spirit, and appointments of its "Grand Army" was insolent in the extreme. It was thought to be but an easy undertaking for it to march to Richmond, and plant the Stars and Stripes in Capitol Square. An advance was urged not only by the popular clamor of "On to Richmond," but by the pressure of extreme parties in Congress; and when it was fully resolved upon, the exhilaration was extreme, and the prospect of the occupation of Richmond in ten days was entertained with every variety of public joy.

Nothing had been left undone to complete the preparations of the Northern army. In numbers it was immense; it was provided with the best artillery in the world; it comprised, besides its immense force of volunteers, all the regulars cast of the Rocky Mountains, to the number of about ten thousand, collected since February, in the city of Washington, from Jefferson Barracks, from St. Louis, and from Fortress Monroe. Making all allowances for mistakes, we are warranted in saying that the Northern army consisted of at least fifty-five regiments of volunteers, eight companies of regular infantry, four of marines, nine of regular cavalry, and twelve batteries, forty-nine guns. This army was placed at the command of one who was acknowledged to be the greatest and most scientific general in the North-General McDowell. This officer had a reputation in the army of being a stoic philosopher—a reputa tion sought after by a certain number of West Point pupils. General Beauregard was fully informed of the movements of