The statesmanship displayed by our Government throughout this difficult affair was of the highest order. Credit for it has been given to Mr. Seward, the Secretary of State, by whom the correspondence and negotiations were conducted. Few men could have managed these details better; yet the course that was so happily determined on was undoubtedly due to the good sense and shrewd wisdom of the President. He not only dictated the policy to be followed by Mr. Seward in his despatches to the American Minister in London, but the more important documents were revised and materially altered by Lincoln's own hand. His management of the Trent affair alone, it has been said, would suffice to establish his reputation as the ablest diplomatist of the war. Coming, as it did, at a time when Lincoln was overwhelmed with the burden of home affairs, it showed the surprising resources of his character. The readiness and ability with which he met this perilous emergency, in a field in which he had had absolutely no experience or preparation, was equaled only by his cool courage and self-reliance in following a course radically opposed to the prevailing public sentiment, to the views of Congress, and to the advice of his own Cabinet. The Secretary of the Navy had hastened to approve officially the act of Captain Wilkes, commander of the "San Jacinto," and Secretary Stanton "cheered and applauded" it. Even Mr. Seward, cautious and conservative diplomat as he was, at-first "opposed any concession or surrender of the prisoners." But Lincoln said significantly, "One war at a time." Events have long since afforded the most ample vindication of his course in this important matter. He avoided a foreign war, while at the same time, by committing Great Britain to the doctrine of "peace between neutrals," gained a substantial diplomatic victory over that government.

An excellent account of the circumstances of the Trent affair is given by Benson J. Lossing, the author and historian, who was in Washington when the events occurred. "The act of Captain Wilkes," says Mr. Lossing, "was universally applauded by all loyal Americans, and the land was filled with rejoicings because two of the most mischievous men among the enemies of the Government were in custody. For the moment, men did not stop to consider the law or the expediency involved in the act. Public honors were tendered to Captain Wilkes, and resolutions of thanks were passed by public bodies. The Secretary of the Navy wrote him a congratulatory letter on the 'great public services' he had rendered in 'capturing the rebel emissaries, Mason and Slidell,' and assured him that his conduct had 'the emphatic approval of the department.' The House of Representatives tendered him their thanks for the service he had done. But there was one thoughtful man in the nation, in whom was vested the tremendous executive power of the Republic at that time, and whose vision was constantly endeavoring to explore the mysteries of the near future, who held calmer and wiser thoughts than most men at that critical moment, because his feelings were kept in subjection to his judgment by a sense of heavy responsibility. That man was Abraham Lincoln. The writer was in the office of the Secretary of War when the telegraphic despatch announcing the capture of Mason and Slidell was brought in and read. He can never forget the scene that ensued. Led by Secretary Stanton, who was followed by Governor Andrew of Massachusetts and others who were present, cheer after cheer was heartily given by the company. A little later, the writer was favored with a brief interview with the President, when the clear judgment of that far-seeing and sagacious statesman uttered through his lips the words which formed the suggestion of, and the keynote to, the judicious action of the Secretary of State afterwards. 'I fear the traitors will prove to be white elephants,' said Mr. Lincoln. 'We must stick to American principles concerning the rights of neutrals,' he continued. 'We fought Great Britain for insisting, by theory and practise, on the right to do just what Captain Wilkes has just done. If Great Britain shall now protest against the act, and demand their release, we must give them up, apologize for the act as a violation of our own doctrines, and thus forever bind her over to keep the peace in relation to neutrals, and so acknowledge that she has been wrong for sixty years.' Great Britain did protest and make the demand, and at the same time made preparations for war against the United States. On the same day that Lord John Russell sent the protest and demand to Lord Lyons, the British Minister at Washington, Secretary Seward forwarded a despatch to Minister Adams in London, informing him that this Government disclaimed the act of Captain Wilkes, and giving assurance that it was ready to make a satisfactory arrangement of all difficulties arising out of the unauthorized act. These despatches passed each other in mid-ocean. The Government, in opposition to popular sentiment, decided at once to restore Mason and Slidell to the protection of the British flag. It was soon afterwards done, war between the two nations was averted, and, in the language of President Lincoln, the British Government was 'forever bound to keep the peace in relation to neutrals.' The wise statesmanship exhibited at that critical time was originated by Abraham Lincoln."

Lincoln once confessed that the Trent affair, occurring as it did at a very critical period of the war, had given him great uneasiness. When asked whether it was not a great trial to surrender the two captured Commissioners, he said: "Yes, that was a pretty bitter pill to swallow, but I contented myself with believing that England's triumph in the matter would be short-lived, and that after ending our war successfully we could if we wished call England to account for the embarrassments she had inflicted upon us. I felt a good deal like the sick man in Illinois who was told he probably hadn't many days longer to live, and that he ought to make peace with any enemies he might have. He said the man he hated worst of all was a fellow named Brown, in the next village, and he guessed he had better begin on him. So Brown was sent for, and when he came the sick man began to say, in a voice as meek as Moses', that he wanted to die at peace with all his fellow-creatures, and hoped he and Brown could now shake hands and bury all their enmity. The scene was becoming altogether too pathetic for Brown, who had to get out his handkerchief and wipe the gathering tears from his eyes. It wasn't long before he melted and gave his hand to his neighbor, and they had a regular love-feast. After a parting that would have softened the heart of a grindstone, Brown had about reached the room door, when the sick man rose up on his elbow and said, 'But, see here, Brown, if I should happen to get well, mind that old grudge stands!' So I thought if this nation should happen to get well, we might want that old grudge against England to stand."

Other controversies with England arose during the progress of the war—over the fitting out of Confederate cruisers at English ports to prey upon the commerce of the United States, over captured mails, etc.—in which all of Lincoln's sagacity and patience were needed to avert an open rupture with the British government. That the strain was severe and the danger great is made clear by an entry in Mr. Welles's Diary, in which he says: "We are in no condition for a foreign war. Torn by dissensions, an exhausting civil war on our hands, we have a gloomy prospect, but a righteous cause that will ultimately succeed. God alone knows through what trials, darkness, and suffering we are to pass." Again, in dealing with the French invasion of Mexico, Lincoln—as Mr. John Bigelow (then minister to France) puts it—"wisely limited himself to a firm repetition of the views and principles held by the United States in relation to foreign invasion," and thereby gained a diplomatic victory. How well "the old grudge against England" stood is shown by the substantial damages obtained from her, some years after the war, on the claims against the Alabama and other privateers, the foundations of which had been wisely laid by President Lincoln.

In the autumn of 1861 was originated the plan of a new naval vessel, which became the "Monitor"—the forerunner of the modern iron-clad, and the formidable little craft that beat back the "Merrimac" ram at Hampton Roads, March 9, 1862, saved the Federal Navy, and revolutionized naval architecture. The interesting story of the project, and of Lincoln's relation to it, is thus told: "The invention belongs to Captain John Ericsson, a man of marvelous ability and most fertile brain; but the creation of the 'Monitor' belongs to two distinguished iron-masters of the State of New York, viz.: the Hon. John F. Winslow and his partner in business, the Hon. John A. Griswold. These two gentlemen were in Washington in the autumn of 1861, for the adjustment of some claims against the Government for iron plating furnished by them for the war-ship 'Galena.' There, through Mr. C.S. Bushnell, the agent of Captain Ericsson, they learned that the plans and specifications for a naval machine, or a floating iron battery, presented by Captain Ericsson, found no favor with the special board appointed by Congress in 1861 to examine and report upon the subject of iron-clad ships of war. Ericsson and his agent, Mr. Bushnell, were thoroughly disheartened and demoralized at this failure to interest the Government in their plans. The papers were placed in the hands of Messrs. Winslow and Griswold, with the earnest request that they would examine them, and, if they thought well of them, use their influence with the Government for their favorable consideration. Mr. Winslow carefully read the papers and became satisfied that Ericsson's plan was both feasible and desirable. After conference with his friend and partner, Mr. Griswold, it was determined to take the whole matter to President Lincoln. Accordingly, an interview was arranged with Mr. Lincoln, to whom the plans of Captain Ericsson were presented, with all the unction and enthusiasm of an honest and mastering conviction, by Mr. Winslow and Mr. Griswold, who had now become thoroughly interested in the undertaking. The President listened with attention and growing interest. When they were done, Mr. Lincoln said, 'Gentlemen, why do you bring this matter to me? Why not take it to the Department having these things in charge?' 'It has been taken already to the Department, and there met with a repulse, and we come now to you with it, Mr. President, to secure your influence. We are here not simply as business men, but as lovers of our country, and we believe most thoroughly that here is something upon which we can enter that will be of vast benefit to the Republic,' was the answer. Mr. Lincoln was roused by the terrible earnestness of Mr. Winslow and his friend Griswold, and said, in his inimitable manner, 'Well, I don't know much about ships, though I once contrived a canal-boat—the model of which is down in the Patent Office—the great merit of which was that it could run where there was no water. But I think there is something in this plan of Ericsson's. I'll tell you what I will do. I will meet you to-morrow at ten o'clock, at the office of Commodore Smith, and we will talk it all over.' The next morning the meeting took place according to the appointment. Mr. Lincoln was present. The Secretary of the Navy, with many of the influential men of the Navy Department, also were there. The office where they met was rude in its belongings. Mr. Lincoln sat upon a rough box. Mr. Winslow, without any knowledge of naval affairs other than that which general reading would give, entered upon his task with considerable trepidation, but his whole heart was in it, and his showing was so earnest, practical, and patriotic, that a profound impression was made. 'Well,' said Mr. Lincoln, after Mr. Winslow had finished, 'well, Commodore Smith, what do you think of it?' The Commodore made some general and non-committal reply, whereupon the President, rising from the box, added, 'Well, I think there is something in it. Good morning, gentlemen,' and went out. From this interview grew a Government contract with Messrs. Winslow and Griswold for the construction of the 'Monitor,' the vessel to be placed in the hands of the Government within a hundred days at a cost of $275,000. The work was pushed with all diligence till the 30th of January, 1862, when the ship was launched at Greenpoint, one hundred and one days from the execution of the contract, thus making the work probably the most expeditious of any recorded in the annals of mechanical engineering."

At the assembling of Congress in December, 1861, Lincoln presented his first Annual Message. Among its most noteworthy passages was that which touched upon the relations between labor and capital—a subject so prominent in our later day. It was alluded to in its connection with the evident tendency of the Southern Confederacy to discriminate in its legislation in favor of the moneyed class and against the laboring people. On this point the President said:

In my present position, I could scarcely be justified were I to omit raising a warning voice against this approach of returning despotism. 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 attention. It is the effort to place capital on an equal footing with, if not above, labor, in the structure of 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. Having 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 fixed for life in the condition 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, and 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 community exists within that relation. A few men own capital, and those few avoid labor themselves, and, with their capital, hire 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 Southern States, a majority of the whole people of all colors are neither slaves nor masters; while in the North, a large majority are neither hirers nor hired. Men, with their families—wives, sons, and daughters—work for themselves, on their farms, 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 with 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, not 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 on his own 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.

The struggle of to-day is not altogether for to-day—it is for a vast future also. With a reliance on Providence, all the more firm and earnest, let us proceed in the great task which events have devolved upon us.

The reception given at the White House on New Year's day, 1862, was a brilliant and memorable affair. It was attended by distinguished army officers, prominent men from civil life, and the leading ladies of Washington society. "Army uniforms preponderated over black dress coats, and the young Germans of Blenker's division were gorgeously arrayed in tunics embroidered with gold on the collars and cuffs, sword-belts of gold lace, high boots, and jingling spurs." It was such a scene as that before the battle of Waterloo, when the

... capital had gathered then
Her beauty and her chivalry, and bright
The lamps shone o'er fair women and brave men;
A thousand hearts beat happily; and when
Music arose, with its voluptuous swell,
Soft eyes looked love to eyes that spake again,
And all went merry as a marriage bell.