[Illustration: Andrew Johnson.]

The Thirteenth Amendment, abolishing slavery, had been declared a part of the Constitution on December 18, 1865, and the great work of the Emancipation Proclamation was thus completed. The Reconstruction Committee now reported the Fourteenth Amendment to the Constitution, fixing the status of citizens, the basis of representation, etc., and also a Bill declaring that when the Amendment had become part of the Constitution any of the late Confederate States, upon ratifying it, would be allowed representation in Congress, to all of which the President expressed his disapproval. The various presidential vetoes completely broke off any possible chance of harmony between the President and Congress, and in addition to them, the President indulged in a number of rash speeches in which Congress was condemned in no very elegant terms. On February 22, 1866, the President, in a speech at the White House, denounced Congress bitterly for its opposition, and referred in an abusive way to several prominent Republican leaders by name, and he followed this up during the late Summer months by several coarse speeches in Western cities while he was on his way to the dedication of a monument to Stephen A. Douglas at Chicago.

During the autumn of 1866 Congressional elections were to be held, and there was naturally an absorbing interest in the result. These elections were of the greatest importance, for if the President's course was approved by the election of a Democratic Congress, almost the entire result of the Civil War would have been undone, and the strife between the North and South might have been renewed and continued in a more serious form. By this time the South, encouraged by the President's opposition, had rejected the Fourteenth Amendment, and were taking a bold stand to maintain their policy. In October, Ohio, Indiana, Iowa and Pennsylvania went Republican, and in November were joined by New York, which went overwhelmingly Republican, and the Republicans in the North were everywhere victorious, and they were thus upheld in their Reconstruction policy by the popular sentiment.

The second session of the Thirty-ninth Congress convened on December 3, 1866. The South, during the recess of Congress, had refused to adopt the Fourteenth Amendment, this having been made, as already stated, a condition precedent to the enjoyment of the full privileges of Statehood, and now nothing remained but for Congress to establish a Government over the Southern States until they should see fit to comply with the conditions laid down by Congress. The ten Southern States (Tennessee had been readmitted by joint resolution July 24, 1866) were divided into five Military Districts, under the supervision of Regular Army Officers, who were to have control over all the people in their Districts, for their peace and protection, until the States recognized the Fourteenth Amendment. This Bill was passed March 2, 1867, over the President's veto, and on the same day, over the President's veto, was passed the Bill "To regulate the tenure of Civil offices." The object of the latter Bill was to prevent the President from removing Republicans from office. No person in civil office who had been appointed with the consent of the Senate was to be removed until his successor was appointed in a like manner.

Efforts to impeach the President were first begun in the House on January 7, 1867, and the Judiciary Committee, to which the matter was referred, reported in March that it was unable to conclude its investigations, and it recommended a continuance of the proceedings. President Johnson now took the step that ultimately brought about his impeachment. In August, 1867, he suspended Mr. Stanton, the Secretary of War; the suspension was not approved by the Senate in January, 1868, but the President, holding that the Tenure of Office Act was unconstitutional, removed (February 21, 1868) Mr. Stanton from office and appointed Adjutant-general Lorenzo Thomas. This act was declared illegal by the Senate and a second impeachment was immediately reported in the House and adopted February 24, 1868. The House selected John A. Bingham, Geo. S. Boutwell, James F. Wilson, Benjamin F. Butler, Thomas Williams, John A. Logan and Thaddeus Stevens, all Republicans, as managers of the impeachment proceedings. The counsel for the President were no less eminent: Henry Stanbery, Benjamin R. Curtis, William M. Evarts and William S. Groesbeck. On May 11, 1868, the Senate voted thirty-five "guilty" to nineteen "not guilty," and the impeachment failed by one vote. Had the President been impeached, Benjamin F. Wade, of Ohio, would have become President. The result was deeply disappointing to the Republicans, and for many years there was considerable feeling against the seven Republicans who voted with the twelve Democrats against the impeachment, but lapse of time has brought about a view that the interests of the country were best served by the failure of the impeachment, not that President Johnson's policy and the action of the South under it are to be adopted, but because it is believed that the issues caused by the war were more speedily settled by the failure to impeach.

So bitter was the feeling of Congress against the President, and so great was the distrust of him, that when the Thirty-ninth Congress adjourned on March 4, 1867, the Fortieth Congress convened on the same day, and a series of adjourned meetings were held during the months until December, so that the President would not have undisputed sway during the recess which usually came between March and December.

The question of the National Debt, while not arousing the bitter antagonism that marked the attempt to settle the Reconstruction question, was nevertheless of equal, if not greater importance, because it affected the prosperity and business of the entire country. The total debt of the United States on October 31, 1865, was $2,808,549,437.55, of which debt $454,218,038.00 was in United States notes (legal tenders or greenbacks, as they were called) and fractional currency, in active circulation with the National Bank currency. When the Thirty-ninth Congress convened for the first session it had to consider the disposition of this enormous debt, most of which had been incurred at a high war rate of interest; and to decide what, if anything, should be done with this vast volume of fiat currency, and to consider the matter of reducing the Internal Revenue. The greenbacks were, of course, not on a par with coin, as the action of the Government in declaring these notes legal tender had destroyed our credit abroad and had driven all coin out of circulation, and the value of these notes fluctuated almost daily with the market value of coin. The plan of the Secretary of the Treasury, Mr. McCulloch, was to contract the currency so as to lead to a resumption of specie payment and again establish our credit abroad. The situation was without precedent in financial history and there was some excuse for what has since been deemed a wrong step in the beginning. After considerable debate, in which some opposition was shown to the policy of Contraction—this opposition being led by John Sherman, who was, in fact, almost alone in his contention—a Bill was passed (April 12, 1866) allowing the Secretary of the Treasury to redeem a certain amount of legal tenders with Bonds, a course which naturally increased the bonded interest-bearing indebtedness and reduced the volume of circulating medium. The people of the country speedily complained of the contraction of the currency, and attributed the failure of business enterprises and the lack of money to it. This sentiment resulted later in the formation of a new but ephemeral political party, the Greenback Party, which went so far as to advocate the unlimited issue of legal tenders and the payment of all the indebtedness of the United States in United States notes. The public disapproval of contraction showed itself strongly, and this led to a Bill, passed on February 4, 1868, suspending the authority of the Secretary of the Treasury to reduce the currency. The total amount of greenbacks had by this time been reduced to $356,000,000. This practically settled the question of Currency Contraction, although the Greenback Party, created by this agitation, was in existence until the resumption of specie payments in 1879.

As the requirements of the Treasury gradually became less, Congress rapidly amended the Internal Revenue laws, and the Federal taxes on the people, as a result of the war, gradually became less burdensome, and notwithstanding the enormous reduction in the revenue of the Government, the National Debt was reduced nearly three hundred million dollars in the four years following the war. To add to the brightness of this financial history, large sums were paid out toward the construction of the Union and Central Pacific Railroads, and on July 27, 1868, Alaska was purchased from the Russian Government for $7,200,000.

The entire course of this financial history cannot be claimed to be entirely satisfactory, yet the achievements of the Republican Party during this period, acting in many instances without precedent, were indeed remarkable.

While the exciting scenes connected with the impeachment of the President were going on during the early months of 1868, the South was ratifying the Fourteenth Amendment, and by June, 1868, the long struggle over the Reconstruction question was practically closed by the admission of the Southern States, and in July the Fourteenth Amendment was declared a part of the Constitution. Throughout this long contest the Democrats, North and South, joined in vigorous support of the President because the course of the Republicans was absolutely fatal to their political prospects. The great contest had retarded the progress of the South, and was unfortunate in continuing the bitterness between the two sections of the country. Both sides hailed its conclusion with thanksgiving, and the Republicans now looked forward to the presidential election in the Fall of 1868, which would replace, probably with a Republican, a President whose person and course were so obnoxious to the party.