White House, March 18, 1861.
"I did see and talk in May last at Springfield, Illinois, with Master George Edward Patten."
With the beginning of the work of the administration, came trouble with the members of the Cabinet. The several secretaries were, in form at least, the choice of the President, but as must always be the case in the shaping of a Cabinet, and as was particularly necessary at a time when it was of first importance to bring into harmonious relations all of the political groups of the North which were prepared to be loyal to the government, the men who took office in the first Cabinet of Lincoln represented not any personal preference of the President, but political or national requirements. The Secretary of State, Mr. Seward, had, as we know, been Lincoln's leading opponent for the Presidential nomination and had expressed with some freedom of criticism his disappointment that he, the natural leader of the party, should be put to one side for an uncultivated, inexperienced Westerner. Mr. Seward possessed both experience and culture; more than this, he was a scholar, and came of a long line of gentlefolk. He had public spirit, courage, legitimate political ambition, and some of the qualities of leadership. His nature was, however, not quite large enough to stand the pressure of political disappointment nor quite elastic enough to develop rapidly under the tremendous urgency of absolutely new requirements. It is in evidence that more than once in the management of the complex and serious difficulties of the State Department during the years of war, Seward lost his head. It is also on record that the wise-minded and fair-minded President was able to supply certain serious gaps and deficiencies in the direction of the work of the Department, and further that his service was so rendered as to save the dignity and the repute of the Secretary. Seward's subjectivity, not to say vanity, was great, and it took some little time before he was able to realise that his was not the first mind or the strongest will-power in the new administration. On the first of April, 1861, less than thirty days after the organisation of the Cabinet, Seward writes to Lincoln complaining that the "government had as yet no policy; that its action seemed to be simply drifting"; that there was a lack of any clear-minded control in the direction of affairs within the Cabinet, in the presentation to the people of the purposes of the government, and in the shaping of the all-important relations with foreign states. "Who," said Seward, "is to control the national policy?" The letter goes on to suggest that Mr. Seward is willing to take the responsibility, leaving, if needs be, the credit to the nominal chief. The letter was a curious example of the weakness and of the bumptiousness of the man, while it gave evidence also, it is fair to say, of a real public-spirited desire that things should go right and that the nation should be saved. It was evident that he had as yet no adequate faith in the capacity of the President.
Lincoln's answer was characteristic of the man. There was no irritation with the bumptiousness, no annoyance at the lack of confidence on the part of his associate. He states simply: "There must, of course, be control and the responsibility for this control must rest with me." He points out further that the general policy of the administration had been outlined in the inaugural, that no action since taken had been inconsistent with this. The necessary preparations for the defence of the government were in train and, as the President trusted, were being energetically pushed forward by the several department heads. "I have a right," said Lincoln, "to expect loyal co-operation from my associates in the Cabinet. I need their counsel and the nation needs the best service that can be secured from our united wisdom." The letter of Seward was put away and appears never to have been referred to between the two men. It saw the light only after the President's death. If he had lived it might possibly have been suppressed altogether. A month later, Seward said to a friend, "There is in the Cabinet but one vote and that is cast by the President."
The post next in importance under the existing war conditions was that of Secretary of War. The first man to hold this post was Simon Cameron of Pennsylvania. Cameron was very far from being a friend of Lincoln's. The two men had had no personal relations and what Lincoln knew of him he liked not at all. The appointment had been made under the pressure of the Republicans of Pennsylvania, a State whose support was, of course, all important for the administration. It was not the first nor the last time that the Republicans of this great State, whose Republicanism seems to be much safer than its judgment, have committed themselves to unworthy and undesirable representatives, men who were not fitted to stand for Pennsylvania and who were neither willing nor able to be of any service to the country. The appointment of Cameron had, as appears from the later history, been promised to Pennsylvania by Judge Davis in return for the support of the Pennsylvania delegation for the nomination of Lincoln. Lincoln knew nothing of the promise and was able to say with truth, and to prove, that he had authorised no promises and no engagements whatsoever. He had, in fact, absolutely prohibited Davis and the one or two other men who were supposed to have some right to speak for him in the convention, from the acceptance of any engagements or obligations whatsoever. Davis made the promise to Pennsylvania on his own responsibility and at his own risk; Lincoln felt under too much obligation to Davis for personal service and for friendly loyalty to be willing, when the claim was finally pressed, to put it to one side as unwarranted. The appointment of Cameron was made and proved to be expensive for the efficiency of the War Department and for the repute of the administration. It became necessary within a comparatively short period to secure his resignation. It was in evidence that he was trafficking in appointments and in contracts. He was replaced by Edwin M. Stanton, who was known later as "the Carnot of the War." Stanton's career as a lawyer had given him no direct experience of army affairs. He showed, however, exceptional ability, great will power, and an enormous capacity for work. He was ambitious, self-willed, and most arbitrary in deed and in speech. The difficulty with Stanton was that he was as likely to insult and to browbeat some loyal supporter of the government as to bring to book, and, when necessary, to crush, greedy speculators and disloyal tricksters. His judgment in regard to men was in fact very often at fault. He came into early and unnecessary conflict with his chief and he found there a will stronger than his own. The respect of the two men for each other grew into a cordial regard. Each recognised the loyalty of purpose and the patriotism by which the actions of both were influenced. Lincoln was able to some extent to soften and to modify the needless truculency of the great War Secretary, and notwithstanding a good deal of troublesome friction, armies were organised and the troops were sent to the front.
The management of the Treasury, a responsibility hardly less in importance under the war conditions than that of the organisation of the armies, was placed in the hands of Senator Chase. He received from his precursor an empty treasury while from the administration came demands for immediate and rapidly increasing weekly supplies of funds. The task came upon him first of establishing a national credit and secondly of utilising this credit for loans such as the civilised world had not before known. The expenditures extended by leaps and bounds until by the middle of 1864 they had reached the sum of $2,000,000 a day. Blunders were made in large matters and in small, but, under the circumstances, blunders were not to be avoided and the chief purpose was carried out. A sufficient credit was established, first with the citizens at home and later with investors abroad, to make a market for the millions of bonds in the two great issues, the so-called seven-thirties and five-twenties. The sales of these bonds, together with a wide-reaching and, in fact, unduly complex system of taxation, secured the funds necessary for the support of the army and the navy. At the close of the War, the government, after meeting this expenditure, had a national war debt of something over four thousand millions of dollars. The gross indebtedness resulting from the War was of course, however, much larger because each State had incurred war expenditures and counties as well as States had issued bonds for the payment of bounties, etc. The criticism was made at the time by the opponents of the financial system which was shaped by the Committee of Ways and Means in co-operation with the Secretary, a criticism that has often been repeated since, that the War expenditure would have been much less if the amounts needed beyond what could be secured by present taxation had been supplied entirely by the proceeds of bonds. In addition, however, to the issues of bonds, the government issued currency to a large amount, which was made legal tender and which on the face of it was not made subject to redemption.
In addition to the bills ranging in denomination from one dollar to one thousand, the government brought into distribution what was called "postal currency." I landed in New York in August, 1862, having returned from a University in Germany for the purpose of enlisting in the army. I was amused to see my father make payment