James Ford Rhodes (1848–1927). History of the Civil War, 1861–1865. 1917.

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  to pay were any more valuable. Gold, now become a measure of the Union fortune, sold on June 3 at three and one-half per cent premium; on July 12, owing to McClellan’s defeat and the further authorized issue of paper money, 1 it fetched fourteen per cent. But it is certain that, if the border slave States had acted promptly, they would have received for their slaves a fair compensation in United States bonds instead of having subsequently to sustain a flat monetary loss through the gift of freedom to the negroes.  10   During a drive to the funeral of Secretary Stanton’s infant son on the day after his interview with the border State representatives, Lincoln broached to Seward and Welles the subject which was uppermost in his mind. The reverses before Richmond, the formidable power of the Confederacy, convinced him of the necessity of a new policy. Since the slaves were growing the food for the Confederate soldiers and served as teamsters and laborers on intrenchments in the army service, he had “about come to the conclusion that it was a military necessity, absolutely essential for the salvation of the nation, that we must free the slaves or be ourselves subdued.” 2 As he afterwards described the situation, “Things had gone on from bad to worse, until I felt that we had reached the end of our rope on the plan of operations we had been pursuing; that we had about played our last card and must change our tactics or lose the game!” 3  11   On July 22, Lincoln read to his Cabinet, to the surprise of all probably, except Seward and Welles, a proclamation of emancipation which he purposed to issue. Reiterating that
Note 1. The act approved July 11 authorized the additional issue of 150 million United States legal-tender notes. [back]
Note 2. Welles’s Diary, I, 70; IV, 69 n. 2. [back]
Note 3. Carpenter, 20. [back]