ONE NATION OR TWO?
The distressing news of Bull Run brought home to the North the awful realities of war. Men who had all along distrusted the Republican party now denounced a war waged for the emancipation of the South's slaves. Both the President and Congress formally announced that it was a struggle for the maintenance of the Union and not a war on behalf of the slaves. It was well that this position was taken, else the North might have broken into impotent factions. The East hated the South and warred upon their ancient rivals, the planters; the border States owned slaves, disliked the Republican party, and feared the purposes of those in power; while the West loved the Union, held the negro in contempt, and was committed to the party in power on the smallest possible margin.
None but Lincoln seemed to possess the tact and the ability necessary to hold together these dissolving elements of a country never yet thoroughly united; and even he was long doubted and distrusted by many good men. Strange as it may seem, Douglas had been, until his death, June 3, 1861, his right arm. Douglas's last speeches and dying words urged upon the millions of his followers the necessity of giving their lives to the cause of the Union. So critical was the situation that when nominations were made for elective office in the Middle States or the West in 1861, the Administration party took pains to disavow its former attitude and put forward candidates who had been regular Democrats, thus following the same compromising policy which Davis inaugurated in the South. Daniel S. Dickinson, a member of the old Polk and Pierce party of ruthless expansion, was made leader of the Administration forces in New York in 1861, and David Tod, a stanch Douglas man in 1860, was elected Governor of Ohio the same year by Republican votes. John C. Frémont was removed from the command of the Federal army in St. Louis because he undertook to emancipate the slaves in his department. The people of the North were not willing to invade the sister States of the South for any other cause than to restore the Union. Wealthy bankers, industrial leaders, and railway magnates might be kept together on a platform of enlarging the area of their operations, but never on a program which proposed the confiscation of billions of dollars' worth of property, which the slaves represented. In this hour of trial the supreme need was coöperation and union among the diverse elements of the North, for in 1862 another Congress would be chosen, and if party lines were suffered to be drawn, the South would certainly gain her independence.
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With this Unionist program perfectly understood, Lincoln asked Congress for 400,000 men. Congress gave him 500,000. A second wave of warlike enthusiasm swept over the North, and men enlisted not for three months, but for three years. The zeal and abandon of the South was hardly matched, but there was no lack of men or support. With a few exceptions the newspapers, the pulpits, and the lecture platforms urged most ardent support of the common cause. But the more difficult problem of finding money for the vast armies that moved upon the South was not so quickly solved. Secretary Chase reported the expenditure in the three months of June, July, and August of a hundred millions—an amount greater far than the total national debt. Before another three months had passed this expenditure had doubled, and the Secretary estimated that $500,000,000 would be needed before the end of June, 1862! These were astounding figures to a country whose normal annual income was about $50,000,000. And what was worse, the financial men refused to take government bonds at par, as they had done during the war with Mexico, although they were now offered interest at the rate of six to eight per cent. The country had recovered from the panic of 1857, and as business activity increased and the general prosperity became certain, it was more difficult for the Government to borrow money. The suspension of specie payments by all the banks before the end of the year did not mean panic or severe economic crisis, as had hitherto been the case; rather, a change from metallic to paper money. Secretary Chase was told by New York leaders in December, 1862, that government bonds bearing six per cent interest would hardly bring sixty cents on the dollar. Yet business men borrowed money at four per cent and the wheels of industry and commerce were moving at full speed. Prosperity in the North was thus almost as fatal to the Union as adversity in the South was to the Confederacy. Rather than advertise a collapse of the federal credit by selling bonds at a discount of twenty to forty per cent the guiding spirits at Washington decided to issue notes as legal tender to the amount of $150,000,000, increased to $300,000,000 a little later. Immediately, bankers and business men who refused to take bonds protested with such vigor and resolution that Chase and Lincoln, unlearned in the ways of finance, knew not what course to take. To sell bonds at enormous discounts and high rates of interest was bad; to tax the people directly for the needs of the Government would have ruined the party in power; and to issue fiat money was equivalent to forcing the poor to lend what the rich refused. But the emergency was great. It was decided to issue and float “greenbacks” and also to sell bonds in unprecedented numbers. Though the markets of the world were open to the North and business was as active as ever in the history of the country, the Federal Government was thus reduced, like the Confederacy, to the use of paper money, and, surprising as it may appear, the securities of the latter sold in Europe at a higher price than those of the former. Gold and silver disappeared entirely in both sections.
But the eyes of the public were fixed on military movements, not finance, and as the winter of 1861-62 wore on an army of a hundred thousand men gathered around Washington for the second invasion of Virginia. George B. McClellan, the “young Napoleon,” drilled and organized the raw recruits while public opinion began to urge another march upon Richmond. Other armies nearly a hundred thousand strong spread over Kentucky and threatened Tennessee at Cumberland Gap, Bowling Green, and Forts Henry and Donelson. In February Ulysses S. Grant saw the strategic importance of the forts on the Cumberland and Tennessee Rivers, and before the first of March he had captured both, and the whole of West Tennessee lay open to him. Nashville fell as he moved up the Tennessee, and Commodore Foote opened the Mississippi River almost to Vicksburg during the early spring. Meanwhile Albert Sidney Johnston had retreated to northern Mississippi. Finding Grant in a weak position on the southern bank of the Tennessee near Shiloh Church, he hastily gathered his discouraged troops about him for a sudden attack upon the invaders. Grant had nearly 45,000 men and he knew that General Buell was only a few miles away with 37,000 more. Johnston had 40,000. The purpose of the Confederate general was known to his men, and all were inspired with the determination of striking a blow before the two armies of the enemy could unite. Johnston's assistants in command were Beauregard and Bragg, both able and experienced officers. On the morning of April 6, the Confederates fell upon Grant's outposts and drove them headlong against the main body. Desperate valor was shown in the ensuing attack, and before the afternoon it seemed that nothing could save the Union army and its commander from complete disaster. The river was in high flood, two impassable creeks flanked the Federals, while the victorious Confederates held the fourth side of the field. At two o'clock Johnston fell mortally wounded; Beauregard succeeded to command, and about four o'clock the attack slackened; at six it ceased altogether, though the Union forces were demoralized and expecting to be captured. Grant was saved. With the support of Buell at hand he attacked Beauregard on the morrow and regained some of his lost prestige. The “promenade” up the Tennessee had been halted; but the loss of Johnston was equal to the loss of an army. This fighting of South and West was of the most desperate character, for Grant lost more than 10,000 in killed and wounded, while Johnston and Beauregard lost 9700.
The march of Grant and Buell across middle and western Tennessee and the opening of the Mississippi to Memphis was accompanied by the loss to the Confederates of Missouri and a part of Arkansas. Grant's objective in the summer and autumn of 1862 was Vicksburg, but the Confederates held him fast in the neighborhood of Corinth, Mississippi. Buell withdrew from middle Tennessee in the late summer, when Bragg, commander of a second Confederate army in the West, moved through eastern Tennessee into Kentucky, threatening Lexington and Louisville. But Bragg failed after some successes in September to carry the tide of war back toward the Ohio, and he was followed in October by the army of the Ohio, now under the command of General W. S. Rosecrans, toward Murfreesboro, Tennessee, where another sanguinary battle was fought on the last day of December, 1862. Rosecrans now had 43,000 men, Bragg 38,000. After a desperate encounter in which the honors inclined to the Confederate side, Bragg withdrew toward Chattanooga, his base of operations, and Rosecrans encamped at Murfreesboro. The Federal losses in this engagement were more than 13,000, the Confederate somewhat over 9000, and the only advantage was the gaining of a few miles of territory. The war in the West which began so brilliantly for the Federals at Forts Henry and Donelson seemed to have come to a halt. Grant was unable to penetrate the lower South, and Rosecrans was content to leave Bragg in undisturbed possession of the region between Murfreesboro and Chattanooga.