the Country.--Internal Revenue Act.--Necessity of Large Sums
from Taxation.--Public Credit dependent on it.--Constitutional
Provisions.--Financial Policy of Alexander Hamilton.--Excises
Unpopular.--Whiskey Insurrection.--Resistance by Law.--Supreme
Court Decision.--Case of Hylton.--Provisions of New Act.--Searching
Character.--Great Revenue desired.--Credit due to Secretary Chase.

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 saved in Part by Border States.--Last Session of
Thirty-seventh Congress.--President urges Compensated Emancipation
again.--Emancipation Proclamation, January 1, 1863.--Long Controversy
over Question of Compensation for Slaves.--Test Case of Missouri.
--Fourteen Million Dollars offered her.--General Pope's Campaign.
--Army of the Potomac.--Battle of Antietam.--McClellan removed.--
Burnside succeeds him.--Defeat at Fredericksburg.--Hooker succeeds
Burnside.--General Situation.--Arming of Slaves.--Habeas Corpus.--
Conscription Law.--Depressed and Depressing Period.

CHAPTER XXI.
The President's Border-State Policy.--Loyal Government erected in
Virginia.--Recognized by Congress and Senators admitted.--Desire
for a New State.--The Long Dissatisfaction of the People of Western
Virginia.--The Character of the People and of their Section.--Their
Opportunity had come.--Organization of the Pierpont Government.--
State Convention and Constitution.--Application to Congress for
Admission.--Anti-slavery Amendment.--Senate Debate: Sumner, Wade,
Powell, Willey, and Others.--House Debate: Stevens, Conway, Bingham,
Segar.--Passage of Bill in Both Branches.--Heavy Blow to the Old
State.--Her Cl