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chapter.* "In the midst of other cares, however important," Mr. Lincoln went on to say, we must not lose sight of the fact that the war power is still our main reliance. To that power alone can we look, for a time, to give confidence to the people in the contested regions, that the insurgent power will not again overrun them. Until that confidence shall be established, little can be done anywhere for what is called reconstruction. Hence our chiefest care must still be directed to the army and navy, which have thus far borne their harder part so nobly and well; and it may be esteemed fortunate that in giving the greatest efficiency to these indispensable arms, we do also honorably recognize the gallant men, from commander to sentinel, who compose them, and to whom, more than to others, the world must stand indebted for the home of freedom, disenthrall ed, regenerated, enlarged, and perpe tuated."

The reports of the secretaries in the several departments, which accom panied the president's message, exhibited a remarkable and extensive develop ment of the resources of the country in meeting and providing for the exigencies of the war. The statistics fur nished by Mr. Stanton, the secretary of war, are interesting and instructive. According to his statements, over 2,000 siege and sea-coast artillery had been issued since the war was begun, being

* It may be noted here, that the president issued an

additional explanatory proclamation, March 26th, 1864,

with reference to the case of insurgent enemies entitled to the benefits of his proclamation, December 8th, 1863. This is also given in the appendix to the pre

sent chapter.

double the number on hand when the rebellion broke out. The number of field artillery had increased from 231 to 2,481; infantry fire-arms from 437, 433 to 1,550,576, and other arms and material in like proportion. For this supply, the country, at the beginning of the war, was almost wholly depen dent on foreign nations; but now we were not only able to manufacture them ourselves at home, but possessed all the materials necessary therefor. Particularly was this the case in regard to iron in its various shapes. Mr. Stanton also enlarged upon the subject of the exchange of prisoners, and what was held to be the mean and malicious course pursued by the rebel authorities. Until recently, exchanges had been conducted in accordance with the ar rangement made, in 1861, by Gen. Dix and the rebel Gen. Hill (p. 107); | but, owing to several causes, the government had been compelled to suspend this arrangement. The number of our prisoners in the rebels' hands was about 13,000; at Vicksburg and Port Hudson, it will be remembered that between 35,000 and 40,000 prisoners, taken by our armies, were released on parole, until duly and lawfully exchanged. "But the rebel agent," said Mr. Stanton, "in violation of the cartel, declared the Vicksburg prisoners exchanged, and without being exchanged, the Port Hudson prisoners he, without just cause and in violation of the cartel, declared released from their parole. These prisoners were returred to their ranks and a portion of them were found fighting at Chattanooga, and again captured. For this breach of faith, unex

THE NEW YORK PUBLIC LIBRARY

ASTUR. LENOX

VILDEN FOUNDATIONS

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CH. VI.]

1863.

EXCHANGE OF PRISONERS.

ampled in civilized warfare, the only apology or excuse was, that an equal number of prisoners had been captured by the enemy; but on calling for specifications in regard to these alleged prisoners, it was found that a considerable number represented as prisoners were not soldiers, but were non-combatants, citizens of towns and villages, farmers, travellers and others in civil life, not captured in battle, but taken at their homes, on their farms, or on the highway, by John Morgan and other rebel raiders, who put them under a sham parole." Another cause why exchanges were stopped was, the declaration of Jeff. Davis that our black troops and their white officers would not be recognized or treated as prisoners of war, if they fell into his hands. Our government had remonstrated, but thus far to little or no effect. "Meantime, well-authenticated statements show that our troops held as prisoners of war were deprived of shelter, clothing, and food, and some have perished from exposure and famine. This savage barbarity could only have been practised in the hope that this government would be compelled, by sympathy for the suffering endured by our troops, to yield to the proposition of exchang. ing all the prisoners of war on both sides, paroling the excess not actually exchanged, the effect of which operation would be to enable the rebels to put into the field a new army, 40,000 strong, forcing the paroled prisoners into the ranks without exchange, as was done with those paroled at Vicksburg and Port Hudson, and also to leave in the hands of the rebels the colored sol

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diers and officers, who are not regarded by them as prisoners of war, and there fore not entitled to the benefit of the proposed exchange. As the matter now stands, we have over 40,000 pri soners of war ready at any moment to be exchanged, man for man, and officer for officer, to the number held by the rebels," i. e., about 13,000, as above stated. Although the rebel prisoners were treated with every kindness consistent with security, yet, under exist ing circumstances, Mr. Stanton felt called upon to say, that "if it should become necessary for the protection of our men, strict retaliation will be resorted to; but while the rebel authori ties suffer this government to feed and clothe our troops held as prisoners, we shall be content to continue to their prisoners in our hands the humane treatment they have uniformly enjoyed."

The report of the secretary of the navy showed an increase of 161 vessels and 1,175 guns during the year, which, with the vessels then under construction, would make our naval force to consist of 583 vessels, carrying 4,443 guns. Of these vessels forty-six were iron-clad steamers for coast service, and twenty-nine for inland service; 203 sidewheel steamers; 193 screw-steamers, and 112 sailing vessels. The number of seamen in service, on the 1st of July, including the Mississippi squadron, was about 34,000. The average monthly enlistments during the year were over 1,500. The number of vessels captured by the squadrons and reported by the department, on the 1st of November, was, exclusive of a large

1863.

number destroyed on the Mississippi and other rivers, 1,045; of which 547 were schooners, 179 steamers, 131 sloops, thirty brigs, twenty-six barks, fifteen ships, 117 yachts and small boats. The value of prizes sent to the courts for adjudication since the blockade was established, was estimated at not less than $15,000,000.

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The report on the subject of our national finances, from the secretary of the treasury, which had been looked for by the country at large with profound interest, proved to be a clear, well arranged document, and gave general satisfaction. The amount of debt had fallen short of the amount anticipated; while the receipts from all sources of income, except internal revenue, exceeded the estimates. The debt, July 1st, 1863, was $1,098,793,181; its estimated increase, it was now calculated, would raise it, on July 1st, 1864, to $1,686,956,641. Secretary Chase stated that he had, all along, kept four objects in view; moderate interest, general distribution, future controllability, and incidental utility." In respect to the first, it was remarkable that our earliest negotiations had been made at the highest rates of interest, and that the public credit which was at the lowest ebb just preceding the breaking out of the rebellion, had steadily improved in the midst of the terrible trials brought by it upon the country. The first loans were negotiated at 7.30 per cent.; the next at 7 per cent., the next at 6 per cent.; more recently large sums were obtained at 5 and 4 per cent.; and the whole of the debt, which was represented by United

1863

States notes and fractional currency bore, of course, no interest. The aver age rate of interest on the whole debt was, July 1st, 1862, 4.36 per cent.; January 1st, 1863, 4.02 per cent.; July 1st, 1863, 3.77 per cent.; and October 1st, 1863, 3.95 per cent. In regard to the "general distribution" of the debt, that "had been accomplished by the universal diffusion of the United States notes and fractional currency, by the distribution of certificates among great numbers of contract creditors and temporary depositors, and by arrangements to popularize the loans by giving to the people everywhere opportunities to subscribe for bonds." Under this plan, nearly $400,000,000, in five-twenty bonds in denominations of $50, $100, $500, and $1,000 were distributed among all classes of the people. "The history of the world," Mr. Chase added with commendable pride, "may be searched in vain for a parallel case of popular financial support to a national government." The next point, the "controllability" of the debt, had been provided for by limiting the periods and reserving certain times of payment of the bonds issued. “Incidental utility" had been secured by receiving large sums on temporary de posit, and maintaining a fund for their reimbursement which had been used for the convenience of the public. The latter had been further provided for in the uniform currency secured by the issue of United States notes, by which the government was also strengthened in the general distribution of the debt. As a further advantage in this direction, the secretary urged anew his sys

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