Mr. Chase entered in his diary: "The President pocketed the great bill.... He did not venture to veto, and so put it in his pocket. It was a condemnation of his amnesty proclamation and of his general policy of reconstruction, rejecting the idea of possible reconstruction with slavery, which neither the President nor his chief advisers have, in my opinion, abandoned." Mr. Chase was no longer one of the chief advisers. After his withdrawal from his hopeless contest for the presidency, his sentiments toward Mr. Lincoln took on a tinge of bitterness which increased until their friendly association in the public service became no longer possible; and on June 30 he sent the President his resignation, which was accepted. There is reason to believe that he did not expect such a prompt severing of their official relations, since more than once, in the months of friction which preceded this culmination, he had used a threat to resign as means to carry some point in controversy.

Mr. Lincoln, on accepting his resignation, sent the name of David Tod of Ohio to the Senate as his successor; but, receiving a telegram from Mr. Tod declining on the plea of ill health, substituted that of William Pitt Fessenden, chairman of the Senate Committee on Finance, whose nomination was instantly confirmed and commanded general approval.

Horace Greeley, editor of the powerful New York "Tribune," had become one of those patriots whose discouragement and discontent led them, during the summer of 1864, to give ready hospitality to any suggestions to end the war. In July he wrote to the President, forwarding the letter of one "Wm. Cornell Jewett of Colorado," which announced the arrival in Canada of two ambassadors from Jefferson Davis with full powers to negotiate a peace. Mr. Greeley urged, in his over-fervid letter of transmittal, that the President make overtures on the following plan of adjustment: First. The Union to be restored and declared perpetual. Second. Slavery to be utterly and forever abolished. Third. A complete amnesty for all political offenses. Fourth. Payment of four hundred million dollars to the slave States, pro rata, for their slaves. Fifth. Slave States to be represented in proportion to their total population. Sixth. A national convention to be called at once.

Though Mr. Lincoln had no faith in Jewett's story, and doubted whether the embassy had any existence, he determined to take immediate action on this proposition. He felt the unreasonableness and injustice of Mr. Greeley's letter, which in effect charged his administration with a cruel disinclination to treat with the rebels, and resolved to convince him at least, and perhaps others, that there was no foundation for these reproaches. So he arranged that the witness of his willingness to listen to any overtures that might come from the South should be Mr. Greeley himself, and answering his letter at once on July 9, said:

"If you can find any person, anywhere, professing to have any proposition of Jefferson Davis in writing, for peace, embracing the restoration of the Union and abandonment of slavery, whatever else it embraces, say to him he may come to me with you, and that if he really brings such proposition he shall at the least have safe conduct with the paper (and without publicity, if he chooses) to the point where you shall have met him. The same if there be two or more persons."

This ready acquiescence evidently surprised and somewhat embarrassed Mr. Greeley, who replied by several letters of different dates, but made no motion to produce his commissioners. At last, on the fifteenth, to end a correspondence which promised to be indefinitely prolonged, the President telegraphed him: "I was not expecting you to send me a letter, but to bring me a man or men." Mr. Greeley then went to Niagara, and wrote from there to the alleged commissioners, Clement C. Clay and James P. Holcombe, offering to conduct them to Washington, but neglecting to mention the two conditions—restoration of the Union and abandonment of slavery—laid down in Mr. Lincoln's note of the ninth and repeated by him on the fifteenth. Even with this great advantage, Clay and Holcombe felt themselves too devoid of credentials to accept Mr. Greeley's offer, but replied that they could easily get credentials, or that other agents could be accredited, if they could be sent to Richmond armed with "the circumstances disclosed in this correspondence."

This, of course, meant that Mr. Lincoln should take the initiative in suing the Richmond authorities for peace on terms proposed by them. The essential impossibility of these terms was not, however, apparent to Mr. Greeley, who sent them on to Washington, soliciting fresh instructions. With unwearied patience, Mr. Lincoln drew up a final paper, "To Whom it may Concern," formally restating his position, and despatched Major Hay with it to Niagara. This ended the conference; the Confederates charging the President through the newspapers with a "sudden and entire change of views"; while Mr. Greeley, being attacked by his colleagues of the press for his action, could defend himself only by implied censure of the President, utterly overlooking the fact that his own original letter had contained the identical propositions Mr. Lincoln insisted upon.

The discussion grew so warm that both he and his assailants at last joined in a request to Mr. Lincoln to permit the publication of the correspondence. This was, of course, an excellent opportunity for the President to vindicate his own proceeding. But he rarely looked at such matters from the point of view of personal advantage, and he feared that the passionate, almost despairing appeals of the most prominent Republican editor of the North for peace at any cost, disclosed in the correspondence, would deepen the gloom in the public mind and have an injurious effect upon the Union cause. The spectacle of the veteran journalist, who was justly regarded as the leading controversial writer on the antislavery side, ready to sacrifice everything for peace, and frantically denouncing the government for refusing to surrender the contest, would have been, in its effect upon public opinion, a disaster equal to the loss of a great battle. He therefore proposed to Mr. Greeley, in case the letters were published, to omit some of the most vehement passages; and took Mr. Greeley's refusal to assent to this as a veto on their publication.

It was characteristic of him that, seeing the temper in which Mr. Greeley regarded the transaction, he dropped the matter and submitted in silence to the misrepresentations to which he was subjected by reason of it. Some thought he erred in giving any hearing to the rebels; some criticized his choice of a commissioner; and the opposition naturally made the most of his conditions of negotiation, and accused him of embarking in a war of extermination in the interests of the negro. Though making no public effort to set himself right, he was keenly alive to their attitude. To a friend he wrote:

"Saying reunion and abandonment of slavery would be considered, if offered, is not saying that nothing else or less would be considered, if offered.... Allow me to remind you that no one, having control of the rebel armies, or, in fact, having any influence whatever in the rebellion, has offered, or intimated, a willingness to a restoration of the Union, in any event, or on any condition whatever.... If Jefferson Davis wishes for himself, or for the benefit of his friends at the North, to know what I would do if he were to offer peace and reunion, saying nothing about slavery, let him try me."