THE EMANCIPATION PROCLAMATION.
The national government had learned by this time the full measurement of the gigantic task before it. By the close of the year, 1,300,000 volunteers had been called for, and the daily expenses amounted to $3,000,000. The conviction, too, was growing that slavery was the real cause of the war, and the time had come to treat it with less consideration than many leading officers and men whose patriotism could not be doubted were disposed to show toward the "peculiar institution." President Lincoln was one of the wisest men who ever sat in the executive chair, and none read so unerringly the signs of the times as he. The Abolitionists were impatient with his slowness, while many of the doubting thought he went too fast. He waited until the right hour, and then issued his Emancipation Proclamation.
UNITED STATES MILITARY TELEGRAPH WAGON.
This appeared soon after the battle of Antietam, and it is said was the fulfillment of the pledge President Lincoln had made to heaven that, if Lee's invasion was turned back, he would issue the great paper, which, in effect, would see free 4,000,000 bondsmen. In it he warned the seceding States that in every one which failed to return to its allegiance by the first of January, 1863, he would declare the slaves free. The warning was received with scorn, as was expected. From the date named, therefore, all the armed forces of the Union treated the slaves as free wherever encountered. Before long colored men were enlisted as soldiers and sailors, and they bore no inconsiderable part in the prosecution of the war.
"GREENBACKS."
It will be understood that the revenue of the government was altogether unequal to the vast demands upon it. Taxation was increased, and, in 1862, the government began the issue of its own paper money. The backs of the bills being printed in green ink, these bills were known as "greenbacks." They were made a legal tender, despite considerable opposition to the measure. The law gave any person owing a debt, no matter if contracted in gold and silver, the right to pay the same with greenbacks. Since it is impossible to regulate the value of money except by the law of supply and demand, the bills, as compared with gold, depreciated a good deal in value.
The act of February 25, 1862, authorized the issue of $150,000,000, and further issues were made on June 11, 1862, and March 3, 1863. The depreciation of greenbacks was such that the price of gold averaged 2.20 throughout 1864, and at one time reached 2.85. In other words, a greenback dollar was worth only thirty-five cents. Another method of raising money was through the sale of bonds, of which many millions were issued. To encourage their sale, the National Banking System was established in 1863. This required all banks that issued currency to deposit a slightly larger amount of bonds in Washington. Thus the banks were compelled to help the government by loaning it money.