ary situation. The daily expenditures of the
nation were enormous, and the Secretary of the Treasury had at the
opening of the season estimated that the National debt at the close
of the current fiscal year would exceed seventeen hundred millions
of dollars. The Border State men chose therefore to maintain
possession of their four hundred thousand slaves, even with the
title somewhat shaken by war, rather than to part with them for
the bonds of a Government whose ability to pay they considered
extremely doubtful.

They could readily have secured, indeed they were urged to accept,
fifty millions of dollars, the equivalent of gold coin, in securities
which became in a few years the favorite investment of the wisest
capitalists in the world. Such opportunities are never repeated.
The magnanimous policy of the President and the wise liberality of
the Republican party were precisely adapted, if the Border State
men could have seen it, to the critical situation of the hour.
Subsequent events prevented the repetition of the offer, and the
slave-holders were left to thank themselves and their representatives
for the loss of the munificent compensation proffered by the
Government. They could not believe Mr. Lincoln when at the pressing
moment he pleaded with them so earnestly to accept the terms, and
flavored his appeal with the humorous remark to Mr. Crittenden:
"You Southern men will soon reach the point where bonds will be a
more valuable possession than bondsmen. Nothing is more uncertain
now than two-legged property."

After the unfortunate issue of the Peninsular campaign and in the
fear that Lee might turn directly upon Washington, a new army was
organized on the 27th of June, 1862, and placed under the command
of Major-General John Pope. It included the forces which had been
serving under Fremont, Banks and McDowell, and was divided into
three corps with these officers respectively in command. General
Fremont considering the designation below his rank asked to be
relieved from the service, and his corps was assigned to General
Rufus King, and soon after to General Sigel. General Pope took
the field on the 14th of July with a formidable force. General
McClellan was still within twenty-five miles of Richmond, and with
Pope in front of Washington, the Confederate authorities were at
a standstill and could not tell which way to advance with hope of
success or even with safety.

If the army of Lee should move