Chapter XVII

Ball's Bluff Disaster.--Mr. Conkling's Resolution of Inquiry.-- Unsatisfactory Reply of Secretary Cameron.--Second Resolution.-- Second Reply.--Incidental Debate on Slavery.--Arrest of General Charles P. Stone.--His History.--His Response to Criticisms made upon him.--Responsibility of Colonel Baker.--General Stone before the Committee on the Conduct of the War.--His Examination.--Testimony of Officers.--General Stone appears before the Committee a Second Time.--His Arrest by Order of the War Department.--No Cause assigned. --Imprisoned in Fort Lafayette.--Solitary Confinement.--Sees Nobody. --His Wife denied Access to him.--Subject brought into Congress.-- A Search for the Responsibility of the Arrest.--Groundless Assumption of Mr. Sumner's Connection with it.--Mr. Lincoln's Message in Regard to the Case.--General Stone's Final Release by an Act of Congress. --Imprisoned for One Hundred and Eighty-nine Days.--Never told the Cause.--Never allowed a Trial.--Appears a Third Time before the Committee.--The True Responsibility for the Arrest.--His Restoration to Service.--His Resignation.--Joins the Khedive's Service.

CHAPTER XVIII. The National Finances.--Debt when the Civil War began.--Deadly Blow to Public Credit.--Treasury Notes due in 1861.--$10,000,000 required. --An Empty Treasury.--Recommendation by Secretary Dix.--Secretary Thomas recommends a Pledge of the Public Lands.--Strange Suggestions. --Heavy Burdens upon the Treasury.--Embarrassment of Legislators. --First Receipts in the Treasury in 1861.--Chief Dependence had always been on Customs.--Morrill Tariff goes into Effect.--It meets Financial Exigencies.--Mr. Vallandigham puts our Revenue at $50,000,000, our Expenditures at $500,000,000.--Annual Deficiency under Mr. Buchanan.--Extra Session in July, 1861.--Secretary Chase recommends $80,000,000 by Taxation, and $240,000,000 by Loans.-- Loan Bill of July 17, 1861.--Its Provisions.--Demand Notes.--Seven- thirties.--Secretary Chase's Report, December, 1861.--Situation Serious.--Sales of Public Lands.--Suspension of Specie Payment.-- The Loss of our Coin.--Its Steady Export to Europe.