--The War Not a Question of Men, but
of Money--Proposed Organization of National Banks--Bank Bills Not
Taxed--Local Banks and Their Absorption by the Government--The 1862
Issue of $150,000,000 in "Greenbacks"--Legal Tender Act a Turning
Point in Our Financial History--Compensation of Officers of the
Government.

About this time I had an interview with Mr. Lincoln which may be
of interest. In making the local appointments in Ohio he was
naturally governed largely by his strong affinities for old Whig
associates in Congress, of one of whom, General Schenck, he was
especially fond. I thought some of his appointments in Ohio were
not judicious, and concluded I would go to him and make a general
complaint of the distribution of these offices. I felt that he
failed to consider the fact that the Republican party contained
many men who had not belonged to the Whig party. I requested an
interview with him which was promptly granted, and called at his
office one evening. He was seated in an easy chair and seemed to
be in excellent humor. I proceeded to complain of some of his
appointments in Ohio and as I progressed the expression of his face
gradually changed to one of extreme sadness. He did not say a
word, but sank in his chair, placing his feet upon the table, and
looking, as I thought, the picture of despair. I proceeded with
my complaint until I began mentally to reproach myself for bothering
the President of the United States with so unimportant a matter as
the choice of persons to fill local offices in Ohio, when the
country was in the throes of revolution. Finally I told him I felt
ashamed to disturb him with such matters and would not bother him
again with them. His face brightened, he sat up in his chair and
his whole manner changed, until finally he almost embraced me. He
then told me many interesting stories of his short service in
Congress and of the men with whom he was brought in contact. The
close of the interview was very pleasant and I kept my promise to
him about his appointments.

When Congress convened on the 2nd of December, 1861, the financial
condition of the government was more alarming than at any other
period during the war.

The Secretary of the Treasury had ample and complete authority,
given him by the act of July, 1861, to borrow money on the credit
of the government, but he could not deal with the system of state
banks then existing in the several states. He was forbidden, by
th