His had escaped destruction, they were out of repair. cows and sheep and droves of hogs had been used to feed the army. Horses and mules were worn out or had been killed in battle. The blockade had lowered the price of all he had to sell abroad, and raised the price of all he had been accustomed to buy. The money he received as a soldier was now worthless. He was once a man of position and power. But the very slave who had saved his soldier's pay might now purchase a part of the old plantation. 485. War Times in the North. The people of the North hardly knew what war meant, as compared with the people of the South. True, there were recruiting camps in nearly every neighborhood. The mothers and sisters wept as the men marched away with colors flying and drums beating. There were mass meetings and much war talk. After great battles, excited groups gathered to hear the news and read the list of dead and wounded. Now and then a hero was brought home to be buried with the honors of war. Wounded and crippled soldiers soon appeared in large numbers to remind the people of the awful contest. Heavier taxes and the drafting of men to serve as soldiers also brought the war nearer home. But the North escaped the harm of marching armies. Wages constantly rose in all occupations. The great need of the government for food, clothing, and war SALMON P. CHASE From an engraving in the possession of the American Bank Note Company material encouraged all business. The northern farmer received higher and higher prices for everything he raised, and the manufacturer, protected by a high tariff, enjoyed great prosperity. 486. A New National Banking System (1863). Since the days of Andrew Jackson, state banks had controlled the banking business of the country, but the paper money which they issued was of uncertain value. During the war, however, Congress, at the suggestion of Secretary Chase (428), passed a law that the bonds by which the nation borrowed money should become the basis of a new system of national banks. State banks were forced to become national banks by a heavy tax on their paper money. Many new banking companies were also formed, but all companies were compelled to deposit in the national Treasury government bonds equal to at least a third of their capital. Each bank was then entitled to issue paper money to the extent of ninety per cent of the face value of the bonds deposited. Thus, banks as well as bonds rested on faith in the success of the war for the Union. 487. The Money Cost of the War. The business prosperity and sound banking system made it easier for the North to pay the heavy taxes demanded by the war. Congress used its taxing power more than ever before, by raising the tariff, levying taxes upon land, on all incomes over eight hundred dollars, and by establishing an internal revenue system. Thousands of persons knew for the first time that they were paying taxes directly into the national Treasury. The internal revenue tax fell upon almost every occupation in life as well as upon about everything that a man ate, drank, or wore. In 1865 this tax alone raised about three hundred million dollars. ་ But the expenses of the war even in 1862 were almost two million dollars per day, and the government was compelled to issue two kinds of promises to pay, bonds and paper money. The bonds were pledges, generally at six or seven per cent interest, to pay the holder a certain sum at the end of twenty, thirty, or forty years. By this means more than a billion dollars were borrowed. But this vast sum was not nearly enough, and Congress authorized the issuing of "paper money." This, too, was merely a "promise to pay," but was used instead of coin. There were three kinds of paper currency: (1) Interest-bearing notes amounting to over three hundred and seventy-five million dollars. (2) Noninterest-bearing notes, or "greenbacks," reaching nearly four hundred and fifty million dollars. This kind of paper money was good for all payments except for tariff duties and interest on the national debt. (3) "Fractional currency," to serve as "small change," for the people had stored even their small pieces of gold and silver. In spite of the great sums raised by taxation the national debt in 1865 reached the enormous amount of two billion eight hundred million dollars. But to get the total money cost of the war we must add to this not only taxes raised by the nation, and the large sums expended for interest on the debt, for pensions, and for damage to property, but also the vast amounts paid out by states, cities, towns, and even individuals. This will give a grand total, for saving the Union, perhaps three times as large as the national debt in 1865. The Period of Consolidation and Expansion RECONSTRUCTION OF THE SECEDED STATES LINCOLN AND JOHNSON'S IDEAS OF reconstruCTION 488. The Political Position of the Seceded States. One of the greatest results of the war was to make good the doctrine of Webster and Jackson, as expressed in the words of Lincoln's first inaugural, that “The union of these states is perpetual. No state, upon its own mere motion, can lawfully get out of the Union." Never again will men in this country believe that a state can legally withdraw from the Union. But although Lincoln and the North had held this idea, the seceded states had believed themselves out of the Union. What should be done with them now that peace was declared? Were individuals, especially the leaders, to be punished or pardoned? If the states had no right to secede, then they were still in the Union, and were not conquered territories, but states with rights under the very Constitution against which they had been fighting. The bringing of the seceded states again under the workings of the Constitution is called "reconstruction.” 489. The Beginnings of Reconstruction. No sooner had the Union armies occupied large portions of the Confederate States than Lincoln took steps to bring those states again into working connection with the national government. In December, 1863, he sent forth a "Proclamation of Amnesty" by which he pledged himself to pardon all persons, with a few exceptions, who would take an oath "to support, protect, and defend the Constitution of the United States," and all Acts of |