health; on the ermine which decorates the judge and the rope
which hangs the criminal; on the poor man's salt and the rich man's
spice; on the brass nails of the coffin and the ribbons of the
bride."

The system of internal revenue of which the foregoing is no
exaggeration proved in all respects effective. Congress rendered
the taxes more palatable and less oppressive to the producers by
largely increasing the duties on imports by the Tariff Act of July
14, 1862, thus shutting out still more conclusively all competition
from foreign fabrics. The increased cost was charged to the
consumer, and taxes of fabulous amount were paid promptly and with
apparent cheerfulness by the people. The internal revenue was
bounteous from the first, and in a short period increased to a
million of dollars per day for every secular day of the year. The
amount paid on incomes for a single year reached seventy-three
millions of dollars, the leading merchant of New York paying in
one check a tax of four hundred thousand dollars on an income of
four millions. Mr. Webster said that "Hamilton smote the rock of
the National resources and abundant streams of revenue gushed
forth." But Hamilton's Funding Bill was not more powerful in
establishing the credit of the young Republic after the Revolution
than was the Internal-revenue Act in imparting strength to the
finances of the matured Nation in the throes and agonies of civil
war. It was the crowning glory of Secretary Chase's policy, and
its scope and boldness entitle him to rank with the great financiers
of the world.

CHAPTER XX.

Elections of 1862.--Mr. Lincoln advances to Aggressive Position on
Slavery.--Second Session of Thirty-seventh Congress adjourns.--
Democratic Hostility to Administration.--Democratic State Conventions.
--Platforms in Pennsylvania, Ohio, Indiana, and Illinois.--Nomination
of Horatio Seymour for Governor of New York.--The President prepares
for a Serious Political Contest.--The Issue shall be the Union or
Slavery.--Conversation with Mr. Boutwell.--Proclamation of
Emancipation.--Meeting of Governors at Altoona.--Compensated
Emancipation proposed for Border States.--Declined by their Senators
and Representatives.--Anti-slavery Policy apparently Disastrous
for a Time.--October Elections Discouraging.--General James S.
Wadsworth nominated against Mr. Seymour.--Illinois votes against
the President.--Five Leading States against the President.--
Administration sav