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 in the restaurant for my first lunch in postage stamps. He picked the requisite number, or the number that he believed would be requisite, from a ball of stamps which had, under the influence of the summer heat, stuck together so closely as to be very difficult to handle. Many of the stamps were in fact practically destroyed and were unavailable. Some question arose between the restaurant keeper and my father as to the availability of one or two of the stamps that had been handed over. My father explained to me that immediately after the outbreak of the War, specie, including even the nickels and copper pennies, had disappeared from circulation, and the people had been utilising for the small change necessary for current operations the postage stamps, a use which, in connection with the large percentage of destruction, was profitable to the government, but extravagant for the community. A little later, the postal department was considerate enough to bring into print a series of postage stamps without any gum on

the back. These could, of course, be handled more easily, but were still seriously perishable. Towards the close of the year, the Treasury department printed from artistically engraved plates a baby currency in notes of about two and a half inches long by one and a half inches wide. The denominations comprised ten cents, fifteen cents, twenty-five cents, fifty cents, and seventyfive cents. The fifteen cents and the seventyfive cents were not much called for, and were probably not printed more than once. They would now be scarce as curiosities. The postal currency was well printed on substantial paper, but in connection with the large requirement for handling that is always placed upon small currency, these little paper notes became very dirty and were easily used up. The government must have made a large profit from the percentage that was destroyed. The necessary effect of this distribution of government "I. O. U.'s," based not upon any redemption fund of gold but merely upon the general credit of the government, was to appreciate the value of gold. In June, 1863, just before the battle of Gettysburg, the depreciation of this paper currency, which represented of course the appreciation of gold, was in the ratio of 100 to 290. It happened that the number

290, which marked the highest price reached by gold during the War, was the number that had been given in Laird's ship-yard (on the Mersey) to the Confederate cruiser Alabama.

Chase was not only a hard-working Secretary of the Treasury but an ambitious, active-minded, and intriguing politician. He represented in the administration the more extreme anti-slavery group. He was one of those who favoured from the beginning immediate action on the part of the government in regard to the slaves in the territory that was still controlled by the government. It is doubtless the case that he held these anti-slavery views as a matter of honest conviction. It is in evidence also from his correspondence that he connected with these views the hope and the expectation of becoming President. His scheming for the nomination for 1864 was carried on with the machinery that he had at his disposal as Secretary of the Treasury. The issues between Chase and Seward and between Chase and Stanton were many and bitter. The pressure on the part of the conservative Republicans to get Chase out of the Cabinet was considerable. Lincoln, believing that his service was valuable, refused to be influenced by any feeling of personal antagonism or personal rivalry.

He held on to the Secretary until the last year of the War, when deciding that the Cabinet could then work more smoothly without him, he accepted his resignation. Even then, however, although he had had placed in his hands a note indicating a measure of what might be called personal disloyalty on the part of Chase, Lincoln was unwilling to lose his service for the country and appointed him as Chief Justice.

Montgomery Blair was put into the Cabinet as Postmaster-General more particularly as the representative of the loyalists of the Border States. His father was a leader in politics in Missouri, in which the family had long been of importance. His brother, Frank P. Blair, served with credit in the army, reaching the rank of Major-General. The Blair family was quite ready to fight for the Union, but was very unwilling to do any fighting for the black man. They wanted the Union restored as it had been, Missouri Compromise and all. It was Blair who had occasion from time to time to point out, and with perfect truth, that if, through the influence of Chase and of the men back of Chase in Massachusetts and northern Ohio, immediate action should be taken to abolish slavery in the Border States, fifty thousand men who had marched out of

those States to the support of the Union might be and probably would be recalled. "By a stroke of the pen," said Blair, "Missouri, eastern Tennessee, western Maryland, loyal Kentucky, now loyally supporting the cause of the nation, will be thrown into the arms of the Confederacy." During the first two years of the War, and in fact up to September, 1863, the views of Blair and his associates prevailed, and with the fuller history before us, we may conclude that it was best that they should have prevailed. This was, at least, the conclusion of Lincoln, the one man who knew no sectional prejudices, who had before him all the information and all the arguments, and who had upon him the pressure from all quarters. It was not easy under the circumstances to keep peace between Blair and Chase. Probably no man but Lincoln could have met the requirement.

The Secretary of the Navy, Gideon Welles, of Connecticut, while not a man of brilliancy or of great initiative, appears to have done his part quietly and effectively in the great work of the building and organising of a new fleet. He contributed nothing to the friction of the Cabinet and he was from the beginning a loyal supporter of the President. What we know now