President Lincoln was fully informed concerning every movement Mr. Chase made, for the latter was surrounded by false friends who were willing to destroy him. However, he rebuked the tale-bearers and discouraged all conversation concerning the ambition of his Secretary of the Treasury, and when the criticisms uttered by Mr. Chase of himself and the members of his Cabinet were brought to his attention, he declined to listen to them.

"I have determined," he said, "to shut my eyes so far as possible to everything of the sort. Mr. Chase makes a good Secretary and I shall keep him where he is. If he becomes President, all right. I hope we may never have a worse man. I am entirely indifferent as to his success or failure in these schemes as long as he does his duty at the head of the Treasury Department." He appointed Chase's partisans and wire-pullers to office as fast as the latter proposed them, although he knew perfectly well what he was doing. He was more amused than otherwise at the protestations of his own friends; but all the time he was conscious that he had every reason for magnanimity. With his usual political perspicuity, he was perfectly confident of his own nomination and re-election, and recognized that Chase was daily making mistakes that were fatal to his own political prospects. He endeavored to conceal his knowledge, and avoided explanations from his Secretary of the Treasury until the publication of a secret circular in the Washington newspapers signed by Senator Pomeroy, of Kansas, compelled Mr. Chase to allude to the subject. It was a spiteful, unjust, and untruthful attack upon the President, and proposed the nomination of Mr. Chase as his successor, appealing to patriotic citizens to organize in his support and correspond with the chairman of his committee.

Mr. Chase at once disavowed all knowledge of or responsibility for this circular, but explained that he had yielded to the urgent solicitations of friends and had consented to be a candidate for the Presidential nomination. "If there is anything in my action or position which in your judgment will prejudice the public interest under my charge, I beg you to say so. I do not wish to administer the Treasury Department one day without your entire confidence. For yourself I cherish sincere respect and esteem and, permit me to add, affection."

The next day the President acknowledged the receipt of this letter and promised to answer it more fully later, which he did, saying,—

"... My knowledge of Mr. Pomeroy's letter having been made public came to me only the day you wrote; but I had, in spite of myself, known of its existence several days before. I have not yet read it, and I think I shall not. I was not shocked or surprised by the appearance of the letter, because I had had knowledge of Mr. Pomeroy's committee, and of secret issues which I supposed came from it, and of secret agents who I supposed were sent out by it, for several weeks. I have known just as little of these things as my friends have allowed me to know. They bring the documents to me, but I do not read them: they tell me what they think fit to tell me, but I do not inquire for more....

"Whether you shall remain at the head of the Treasury Department is a question which I will not allow myself to consider from any stand-point other than my judgment of the public service, and, in that view, I do not perceive occasion for a change."

If anything was needed to complete the collapse of the plans of Mr. Chase, the reputation of the man who signed the circular was sufficient. As fast as conventions were held delegations were instructed for Lincoln. The Republican members of the Ohio Legislature were so fearful lest they might be suspected of sympathizing with the ambition of Mr. Chase that they held a caucus and unanimously endorsed the President. Even little Rhode Island, supposed to be a pocket borough absolutely controlled by its Governor, who was a son-in-law of Mr. Chase, bolted and declared for Lincoln. The Secretary of the Treasury, left without a supporter in the Republican party, sought consolation from the Democrats, but they repudiated him and selected as their candidate General McClellan, a man who had been alternately eulogized and anathematized by him.

The retirement of Mr. Chase from the Cabinet was due to his determination to control the patronage of the Treasury Department in the State of New York without reference to the wishes of Mr. Morgan and Mr. Harris, the Senators from that State. There was also friction over Treasury appointments in other parts of the country. Mr. Chase's failure as a Presidential candidate made him very irritable, and whenever the President or any member of the Cabinet offered the slightest opposition to his plans or wishes, he showed so much temper that it was impossible to get along with him except by conceding all his demands. Lincoln, valuing his services in the Treasury so highly, endeavored to gratify him as far as possible, and assured other members of his Cabinet that, as Mr. Chase's ability, industry, and integrity were beyond question, he had a right to select men for whose proper conduct he was responsible. But when Mr. Chase invaded the political provinces of the members of the Senate, the President found it difficult to reconcile the differences, and on two occasions the Secretary of the Treasury tendered his resignation rather than yield what he considered to be his right to select all of his subordinates. Maunsell B. Field, the Assistant Secretary of the Treasury, quotes Lincoln as saying, "I went directly up to him [Chase] with the resignation in my hand, and putting my arm around his neck, said, 'Here is a paper with which I wish to have nothing to do. Take it back and be reasonable.' I had to plead with him a long time, but I finally succeeded, and heard nothing more of that resignation."

But this state of affairs could not endure. There came an occasion upon which the President was not able to give way, and when the two New York Senators objected to the appointment of the same Maunsell B. Field as Assistant Treasurer of New York, he was compelled to recognize their wishes. He wrote Mr. Chase, "As the proverb goes, no man knows so well where the shoe pinches as he who wears it. I do not think Mr. Field a very proper man for the place, but I would trust your judgment and forego this were the greater difficulty out of the way.... Strained as I already am at this point, I do not think that I can make this appointment in the direction of still greater strain." But Mr. Chase felt that the President was acting badly and must be disciplined, and so he resigned again. To submit to Mr. Chase under the circumstances would be to abdicate in his favor and to offend his loyal supporters in New York; hence, without hesitation, he wrote Mr. Chase as follows: "Of all I have said in commendation of your ability and fidelity I have nothing to unsay, yet you and I have reached a point of mutual embarrassment in our official relations which it seems cannot be overcome or longer sustained consistently with the public service."

Mr. Chase was taken entirely by surprise. He supposed that the President, like himself, believed that his presence in the Treasury Department was indispensable to the salvation of the government. Governor Todd, of Ohio, was nominated as his successor, but declined, and the President then sent to the Senate the nomination of William Pitt Fessenden, a Senator from Maine and chairman of the Committee on Finance, entirely without that gentleman's knowledge.