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President。 He and his radical following made no change in their attitude to Lincoln； though Chase pursued a course of confidential criticism which has since inspired the characterization of him as a 〃sneak；〃 while his followers were more outspoken。 In the summer of 1863 Chase was seriously talked of as the next President； and before the end of the year Chase clubs were being organized in all the large cities to promote his candidacy。 Chase himself took the adroit position of not believing that any President should serve a second term。
Early in 1864 the Chase organization sent out a confidential circular signed by Senator Pomeroy of Kansas setting forth the case against Lincoln as a candidate and the case in favor of Chase。 Unfortunately for Chase； this circular fell into the hands of a newspaper and was published。 Chase at once wrote to Lincoln denying any knowledge of the circular but admitting his candidacy and offering his resignation。 No more remarkable letter was written by Lincoln than his reply to Chase； in which he showed that he had long fully understood the situation； and which he closed with these words： 〃Whether you shall remain at the head of the Treasury Department is a question which I do not allow myself to consider from any standpoint other than my judgment of the public service； and； in that view； I do not perceive occasion for change。〃
The Chase boom rapidly declined。 The deathblow was given by a caucus of the Union members of the legislature of his own State nominating Lincoln 〃at the demand of the people and the soldiers of Ohio。〃 The defeat embittered Chase。 For several months； however； he continued in the Cabinet； and during this time he had the mortification of seeing Lincoln renominated in the National Union Convention amid a great display of enthusiasm。
More than once in the past； Chase had offered his resignation。 On one occasion Lincoln had gone to his house and had begged him to reconsider his decision。 Soon after the renomination； Chase again offered his resignation upon the pretext of a disagreement with the President over appointments to office。 This time； however； Lincoln felt the end had come and accepted the resignation。 Chase's successor in the Treasury was William Pitt Fessenden； Senator from Maine。 During most of the summer of 1864 Chase stood aside； sullen and envious； watching the progress of Lincoln toward a second election。 So much did his bitterness affect his judgment that he was capable of writing in his diary his belief that Lincoln meant to reverse his policy and consent to peace with slavery reestablished。
CHAPTER XI。 NORTHERN LIFE DURING THE WAR
The real effects of war on the life of nations is one of those old and complicated debates which lie outside the scope of a volume such as this。 Yet in the particular case of the Northern people it is imperative to answer two questions both of which have provoked interminable discussion： Was the moral life of the North good or bad in the war years？ Was its commercial life sound？
As to the moral question； contemporary evidence seems at first sight contradictory。 The very able Englishman who represented the 〃Times〃； William H。 Russell； gives this ugly picture of an American city in 1863：
〃Every fresh bulletin from the battlefield of Chickamauga； during my three weeks' stay in Cincinnati； brought a long list of the dead and wounded of the Western army； many of whom； of the officers； belonged to the best families of the place。 Yet the signs of mourning were hardly anywhere perceptible； the noisy gaiety of the town was not abated one jot。〃
On the other hand； a private manuscript of a Cincinnati family describes the 〃intense gloom hanging over the city like a pall〃 during the period of that dreadful battle。 The memories of old people at Cincinnati in after daysif they had belonged to the 〃loyal〃 partycontained only sad impressions of a city that was one great hospital where 〃all our best people〃 worked passionately as volunteer assistants of the government medical corps。
A third fact to be borne in mind in connection with this apparent contradiction in evidence is the source of the greater fortunes of Cincinnati； a large proportion of which are to be traced； directly or indirectly to government contracts during the war。 In some cases the merciless indifference of the Cincinnati speculators to the troubles of their country are a local scandal to this day； and it is still told； sometimes with scorn； sometimes with amusement； how perhaps the greatest of these fortunes was made by forcing up the price of iron at a time when the Government had to have iron； cost what it might。
Thus we no sooner take up the moral problem of the times than we find ourselves involved in the commercial question； for here； as always； morals and business are intertwined。 Was the commercial management of the North creditable to the Government and an honor to the people？ The surest way to answer such questions is to trace out with some fullness the commercial and industrial conditions of the North during the four years of war。
The general reader who looks for the first time into the matter is likely to be staggered by what statistics seem to say。 Apparently they contradict what he is accustomed to hear from popular economists about the waste of war。 He has been told in the newspapers that business is undermined by the withdrawal of great numbers of men from 〃productive〃 consumption of the fruits of labor and their engagement as soldiers in 〃unproductive〃 consumption。 But； to his astonishment； he finds that the statistics of 1861…1865 show much increase in Northern business as； for example； in 1865； the production of 142 million pounds of wool against 60 million in 1860。 The government reports show that 13 million tons of coal were mined in 1860 and 21 million in 1864； in 1860； the output of pig iron was 821；000 tons； and 1；014；282 tons in 1864； the petroleum production rose from 21 million gallons in 1860 to 128 million in 1862； the export of corn； measured in money； shows for 1860 a business of 2；399；808 compared with 10；592；704 for 1863； wheat exporting showed； also； an enormous increase； rising from 14 millions in 1860 to 46 millions in 1863。 There are； to be sure； many statistics which seem to contradict these。 Some of them will be mentioned presently。 And yet； on the whole； it seems safe to conclude that the North； at the close of the third year of war was producing more and was receiving larger profits than in 1860。
To deal with this subject in its entirety would lead us into the labyrinths of complex economic theory； yet two or three simple facts appear so plain that even the mere historian may venture to set them forth。 When we look into the statistics which seem to show a general increase of business during the war； we find that in point of fact this increase was highly specialized。 All those industries that dealt with the physical necessities of life and all those that dealt peculiarly with armies flourished amazingly。 And yet there is another side to the story； for there were other industries that were set back and some that almost； if not entirely； disappeared。 A good instance is the manufactu