correspondence of the Federal authorities, to which we have alluded, on this subject, constitutes a chapter of diplomacy qualified to attract the scorn of all civilized and honorable nations. At the time when it was believed our government held the larger number of prisoners, the Federal government proposed to exchange all prisoners, and, to place on parole, in their own country, the surplus held by either party; and our government agreed to the proposition. Before the agreement could be reduced to writing, and signed by the parties, the casualties of war, in the fall of Fort Donelson, reversed this state of things, and gave the Federal government the larger number of prisoners. With this change of things that government changed its policy, and deliberately, and perfidiously, and shamelessly receded from the propositions to which it had been distinctly committed by every obligation of truth, honor, and good faith.

While Mr. Benjamin, Secretary of War, by a curious act of supererogation was releasing our most important prisoners of war in advance of the conclusion of negotiations, sending them North without waiting to have them regularly and safely exchanged under a flag of truce in Norfolk harbor, the enemy were conveying the prisoners captured at Fort Donelson to Chicago and other points more distant from their homes, and were parading the officers who fell into their power through the entire breadth of the land, from western Tennessee, to Fort Warren in Boston harbor, where they were incarcerated. For the prisoners so curiously, and with such unnecessary haste, dispatched to the North by Mr. Benjamin, not a single officer taken at Fort Donelson, nor a single captive privateersman, had been restored to his home. With an excess of zeal well calcu

and gave him twenty-five lashes upon his bare back, in the presence of his runaway slave. It was repeatedly proposed by the people of the South to treat such an enemy without ceremony or quarter, by hanging out the black flag, and making the war a bellum internecinum; but while the South debated, talked, and threatened, the North acted, availing itself of the most ferocious and brutal expedients of the war, arming the slaves, breaking faith on every occasion of expediency, disregarding flags of truce, stealing private property, ravishing women, bombarding hospitals, and setting at defiance every law of civilized warfare. Such was the perfidy and brutality of the North, to which the South responded with the puerile threat of a black flag, which was never hoisted, and which did not even serve the purposes of a scarecrow to its bold and unscrupulous enemy

lated to draw attention from his own part of the transaction, Mr. Benjamin proposed, as a retaliation upon the perfidy of the North, to discharge our own citizens who were subject to parole; but happily a counsel, which proposed to redress a wrong by an act disreputable to ourselves and in violation of what were the obligations of our own honor in the sight of the civilized world, was rejected alike by the government and the country, who were content to commit the dishonor of their enemy, without attempting to copy it under pleas of retaliation, to the justice of history and the future judgments of the world.

CHAPTER XI.

Organization of the permanent Government of the South.-The Policy of England. -Declaration of Earl Russell.--Onset of the Northern Forces.-President Davis's Message to Congress.-The Addition of New States and Territories to the Southern Confederacy. Our Indian Allies.-The Financial Condition, North and South.-Deceitful Prospects of Peace.-Effect of the Disasters to the South.-Action of Congress. -The Conscript Bill.-Provisions vs. Cotton.-Barbarous Warfare of the North.-The Anti-slavery Sentiment.-How it was unmasked in the War.-Emancipation Measures in the Federal Congress.-Spirit of the Southern People.-The Administration of Jefferson Davis.-His Cabinet.-The Defensive Policy.-The NAVAL ENGAGEMENT IN HAMPTON ROADS.-Iron-clad Vessels.-What the Southern Government might have done. The Narrative of General Price's Campaign resumed.-His Retreat into Arkansas.-The BATTLE OF ELK HORN.-Criticism of the Result.-Death of General McCulloch.-The BATTLE OF VALVERDE.-The Foothold of the Confederates in New Mexico.-Change of the Plan of Campaign in Virginia. - Abandonment of the Potomac Line by the Confederates.-The BATTLE OF KERNSTOWN.-Colonel Turner Ashby.Appearance of McClellan's Army on the Peninsula.- Firmness of General Magruder. -The New Situation of the War in Virginia.-Recurrence of Disasters to the South on the Water. The Capture of Newbern.-Fall of Fort Pulaski and Fort Macon.Common Sense vs. "West Point."

THE permanent government of the Confederate States was organized on the 22d day of February, in a season of reverses to our arms and at a dark hour in our national fortunes.

All hopes of foreign interference were positively at an end. On the meeting of the British Parliament in the early part of February, Earl Russell had declared that the blockade of the American ports had been effective from the 15th of August, in the face of the facts that the dispatches of Mr. Bunch, the English consul at Charleston, said that it was not so; and that authentic accounts and letters of merchants showed that any ships, leaving for the South, could be insured by a premium of seven and a-half to fifteen per cent. England had accepted the Treaty of Paris, and yet did not hesitate to violate the principles that had been definitely consecrated by article four of that treaty, by declaring the Federal blockade effective, for no other reason than that "considerable prudence was necessary in the American question." In the House of Commons, Mr. Gregory asserted that the non-observation of the Treaty of

Paris was a deception for the Confederate States, and an ambuscade for the interests of commerce throughout the world.

The Northern army had remained quiet on the Potomac, amusing the Southern people with its ostentatious parades and gala-day sham fights, while the government at Washington was preparing an onset all along our lines from Hatteras to Kansas. Burnside had captured Roanoke Island in the east, while Fort Henry on the Tennessee and Fort Donelson on the Cumberland had sent the echo back to Albemarle. Buffeting sleet and storm, and by forced marches, the enemy had seized Bowling Green, while Sigel fell suddenly upon Springfield; the enemy's gunboats threatened Savannah, and Gen. Butler hurried off his regiments and transports to the Gulf, for an at tack via Ship Island upon New Orleans.

In his message to Congress, President Davis declared that the magnified proportions of the war had occasioned serious disasters, and that the effort was impossible to protect by our arms the whole of the territory of the Confederate States, seaboard and inland. To the popular complaint of inefficiency in the departments of the government, he declared that they had done all which human power and foresight enabled them to accomplish.

The increase of our territory since the opening of the war was scarcely a cause for boast. The addition of new States and Territories had greatly extended our lines of defence. Missouri had been unable to wrest from the enemy his occupancy of her soil. Kentucky had been admitted into the Confederacy only to become the theatre of active hostilities, and, at last, to be abandoned to the enemy. The Indian treaties effected by the Provisional Congress, through the mediation of Gen. Albert Pike, had secured us a rich domain, but a troublesome and worthless ally.* It was possible, however, that

* In December last, Col. James McIntosh was sent from Arkansas into the Cherokee Nation to chastise the rebellious Creek chief Opoth-lay-oho-la, which he did with good effect. The results of the incursion were thus enumerated by Col. McIntosh: "We captured one hundred and sixty women and children, twenty negroes, thirty wagons, seventy yoke of oxen, about five hundred Indian horses, several hundred head of cattle, one hundred sheep, and a great quantity of property of much value to the enemy. The stronghold of Opoth lay-oho-la was completely broken up and his force scattered in every direction, destitute of the simplest elements of subsistence."

in this domain there might be secured a rich inheritance for posterity. It comprised an area of more than eighty thousand square miles, diversified by mountains filled with iron, coal, and other mineral treasures, and broad-reaching plains, with the Red River running along its southern border, the Arkansas river almost through its centre, and their tributaries reticulating its entire surface.

At the time of the inauguration of our permanent government, there was, however, one aspect of our affairs of striking encouragement. It was the condition of the finances of the government. We had no floating debt. The credit of the government was unimpaired among its own people. The total expenditures for the year had been, in round numbers, $170,000,000; less than one-third of the sum expended by the enemy to conquer us, and less than the value of a single article of export-the cotton crop of the year.

In the Federal Congress it was estimated that, at the end of the fiscal year (June, 1862), the public debt of the Northern government would be about $750,000,000, and that the demands on the treasury, to be met by taxation, direct and indirect, would not be less than $165,000,000 per annum.

The problem of the Northern finances was formidable enough. It was calculated that the Federal tax would be from four to six times greater for each State than their usual assessments heretofore, and doubts were expressed, even by Northern jour

The Indian Territory (not including the Osage country-its extent being unknown-nor the 900,000 acres belonging to the Cherokees, which lie between Missouri and Kansas) embraces an area of 82,073 square miles-more than fifty-two millions of acres, to wit:

The land of the Cherokees, Osages, Quapaws, Senecas, and Senecas and Shawnees, 38,105 square miles, or 24,388,800 acres.

That of the Creeks and Seminoles, 20,531 square miles, or 13,140,000 acres. That of the Reserve Indians, and the Choctaws and Chickasaws, 23,437 square miles, or 15,000,000 acres.

Total 82,073 square miles, or 52,528,800 acres.

Its population consists of Cherokees, 23,000; Osages, 7,500; Quapaws, 320; Creeks, 13,500; Seminoles, 2,500; Reserve Indians, 2,000.; Choctaws, 17,500; and Chickasaws, 4,700-making an aggregate of 71,520 souls.

This Indian country is, in many respects, really a magnificent one. It is one of the brightest and fairest parts of the great West, and only needs the development of its resources to become the equal of the most favored lands on this continent.