The plan was further considered in Mr. Johnson's Cabinet, and some alterations were made. The point of chief difference related to the elective franchise—whether it should be extended to the negro race.

Mr. Stanton said: "There was a difference of opinion upon that subject. The President expressed his views very clearly and distinctly. I expressed my views, and other members of the Cabinet expressed their views. The objection of the President to throwing the franchise open to the colored people appeared to be fixed, and I think every member of the Cabinet assented to the arrangement as it was specified in the proclamation relative to North Carolina. After that I do not remember that the subject was ever again discussed in the Cabinet."

Thus from Mr. Stanton's testimony we gather the important facts as to the origin of a measure which became the subject of bitter controversy between President Johnson and the Republican Party. The framework of the North Carolina proclamation was furnished by Mr. Stanton. When alterations had been made the proclamation was agreed to by the Cabinet but without a declaration or even an understanding upon the point which, without much delay, became the vital point: was the policy of government that was announced in the proclamation a permanent policy or was it a temporary expedient, a substitute for military government, and subject to the approval or disapproval of Congress?

General Grant was of the opinion that the organizations which the President set up in the States were temporary and that they were subject to the action of Congress.

Mr. Stanton's opinion is expressed carefully, in his own words: "My opinion is, that the whole subject of reconstruction and the relation of the State to the Federal Government is subject to the controlling power of Congress; and while I believe that the President and his Cabinet were not violating any law, but were faithfully performing their duty in endeavoring to organize provisional governments in those States, I supposed then, and still suppose, that the final validity of such organizations would rest with the law-making power of the government."

In an official letter, dated January 8, 1866, Secretary Stanton gave his reasons for the payment of the salaries of the provisional governors: "The payments were made from the appropriation of army contingencies because the duties performed by the parties were regarded of a temporary character ancillary to the withdrawal of military force, and to take the place of the armed forces in the respective States."

On the other hand the President chose to treat the governments that had been set up as permanent governments and beyond the control of Congress. On this point, the contest between President Johnson and the Republican Party was made up. It ended in an appeal to the people, who rendered a judgment against the President by a two-thirds majority. The testimony of Secretary Seward, and official papers that were issued by the Department of State in the year 1865, may warrant the conclusion that President Johnson was not then prepared to treat the new state organizations as final and binding upon Congress and the country.

Under date of July 8, 1865, Secretary Seward said, in an official letter to Governor Holden of North Carolina: "It is understood here that besides cotton which has been taken by the Secretary of the Treasury under Act of Congress there were quantities of resin, and other articles, as well as funds, lying about in different places in the State and not reduced into possession by United States officers as insurgent property. The President is of the opinion that you can appropriate these for the inevitable and indispensable expenses of the civil government of the State during the continuance of the provisional government."

On the 14th day of November, 1865, Mr. McCulloch authorized Mr. Worth, acting as treasurer in North Carolina, to use the fragments of rebel property that might be gathered to defray the expenses of the provisional government of the State.

In answer to a question put to Secretary Seward, he said: "I do not remember that any provisional governor held a military office, except Mr. Johnson."