It must not be forgotten that this radical change of policy was made in September, 1862. We have already heard of the elections which took place soon after—those elections which mark perhaps the lowest ebb of Lincoln's popularity, when Seymour was elected Governor of New York, and the peace party gained over thirty seats in Congress. It is a question whether, as a purely domestic measure, the Emancipation Proclamation was not, for the time, an injury to the Lincoln Government. And yet it was the real turning-point in the fortunes of the North. It was the central fact in the maintenance of the blockade.
In England at this time the cotton famine was at its height. Nearly a million people in the manufacturing districts were wholly dependent upon charity. This result of the blockade had been foreseen by the Confederate Government which was confident that the distress of England's working people would compel the English ministry to intervene and break the blockade. The employers in England whose loss was wholly financial, did as the Confederates hoped they would do. The workmen, however, took a different course. Schooled by a number of able debaters, they fell into line with that third group of political leaders who saw in the victory of the North, whatever its motives, the eventual extinction of slavery. To these people, the Emancipation Proclamation gave a definite programme. It was now, the leaders argued, no longer a question of eventual effect; the North had proclaimed a motive and that motive was the extinction of slavery. Great numbers of Englishmen of all classes who had hitherto held back from supporting Cobden and Bright now ranged themselves on their side. Addresses of praise and sympathy "began to pour into the Legation of the United States in a steady and ever swelling stream." An immense popular demonstration took place at Exeter Hall. Cobden, writing to Sumner, described the new situation in British politics, in a letter amounting to an assurance that the Government never again would attempt to resist the popular pressure in favor of the North.
On the last day of 1862 a meeting of workingmen at Manchester, where the cotton famine was causing untold misery, adopted one of those New Year greetings to Lincoln. Lincoln's reply expressed with his usual directness his own view of the sympathetic relation that had been established between the democratic classes of the two countries:
"I know and deeply deplore the sufferings which the workingmen at Manchester, and in all Europe, are called to endure in this crisis. It has been often and studiously represented that the attempt to overthrow this Government, which was built upon the foundation of human rights, and to substitute for it one which should rest exclusively on the basis of human slavery, was likely to obtain the favor of Europe. Through the action of our disloyal citizens, the workingmen of Europe have been subjected to severe trials, for the purpose of forcing their sanction to that attempt. Under the circumstances, I cannot but regard your decisive utterances upon the question as an instance of sublime Christian heroism which has not been surpassed in any age or in any country. It is indeed an energetic and reinspiring assurance of the inherent power of truth, and of the ultimate triumph of justice, humanity, and freedom. I do not doubt that the sentiments you have expressed will be sustained by your great nation; and, on the other hand, I have no hesitation in assuring you that they will excite admiration, esteem, and the most reciprocal feelings of friendship among the American people. I hail this interchange of sentiment, therefore, as an augury that whatever else may happen, whatever misfortune may befall your country or my own, the peace and friendship which now exists between the two nations will be, as it shall be my desire to make them, perpetual."
CHAPTER X. THE SECRETARY OF THE TREASURY
Though the defeat of the Democrats at the polls in 1863 and the now definitely friendly attitude of England had done much to secure the stability of the Lincoln Government, this success was due in part to a figure which now comes to the front and deserves attentive consideration. Indeed the work of Salmon Portland Chase, Secretary of the Treasury, forms a bridge, as one might say, between the first and second phases of Lincoln's administration.
The interesting Englishman who is the latest biographer of Lincoln says of Chase: "Unfortunately, this imposing person was a sneak." But is Lord Charnwood justified in that surprising characterization? He finds support in the testimony of Secretary Welles, who calls Chase, "artful dodger, unstable, and unreliable." And yet there is another side, for it is the conventional thing in America to call him our greatest finance minister since Hamilton, and even a conspicuous enemy said of him, at a crucial moment, that his course established his character "as an honest and frank man."
Taking these contradictory estimates as hints of a contradiction in the man, we are forced to the conclusion that Chase was a professional in politics and an amateur in finance. Perhaps herein is the whole explanation of the two characteristics of his financial policy—his reluctance to lay taxes, and his faith in loans. His two eyes did not see things alike. One was really trying to make out the orthodox path of finance; the other was peering along the more devious road of popular caprice.
The opening of the war caught the Treasury, as it caught all branches of the Government, utterly unprepared. Between April and July, 1861, Chase had to borrow what he could. When Congress met in July, his real career as director of financial policy began—or, as his enemies think, failed to begin. At least, he failed to urge upon Congress the need of new taxes and appeared satisfied with himself asking for an issue of $240,000,000 in bonds bearing not less than seven per cent interest. Congress voted to give him $250,000,000 of which $50,000,000 might be interest-bearing treasury notes; made slight increases in duties; and Prepared for excise and direct taxation the following year. Later in the year Congress laid a three per cent tax on all incomes in excess of $800.