Vania were sent to New York for safekeeping, and Governor

Curtin called for 50,000 men to repel the invasion. Similar

fears were entertained for Louisville and Cincinnati, which

Bragg and Kirby Smith were threatening. The fall was

stopped for a week in the middle of the month by the battles

of South Mountain on the 14th and Antietam on the 17th,

but the latter was too dearly bought a victory to compensate

for Jackson's capture of Harper's Ferry with its immense

SPECIE VALUE OP THE PAPER CURRENCY 215

stores and garrison of over 11,000 men. When it was found

that McClellan had failed to follow up his advantage and

that Lee had recrossed the Potomac in safety, the disap-

pointment was keen, and despite Rosecrans's victory at luka

the fall of the currency recommenced, and the lowest price

was that of the last day of the month.

In October McClellan remained inactive, despite the urg-

ing of the president and the impatience of the public. Lee

had time to recover in a measure from the losses of his sortie

into the free states, and he caused great exasperation by

sending Stuart on another raid entirely around McClellan's

idle army. In the West military operations favored the

North. The desperate attempt to recapture Corinth was

foiled by Rosecrans ; and Bragg, after his failure to capture

Louisville, retreated from Kentucky, suffering rather greater

loss than he inflicted at the battle of Perryville on the way.

While these successes tended to offset Stuart's raid and

McClellan's inactivity, the autumn elections had a very

depressing influence. Almost everywhere the administration

lost ground. In Maine and Michigan the Republican majori-

ties were greatly reduced ; Wisconsin, Illinois, Ohio, Indiana,

Pennsylvania, and New York went Democratic. A majority

for the opposition was predicted in the House of Represen-

tatives. 1 The net effect of these various influences was an

average price of the currency $6.60 below that of September.

November was a quieter month, with a much narrower

range of fluctuations, although the average value of the

currency was somewhat less. Military events were not of

great consequence, and the market was dull awaiting the

convening of Congress in December. The lowest quotation

of the month occurred on the 10th, when the order relieving

General McClellan was published. 2

1 Cf. Elaine, Twenty Years of Congress, Vol. I, pp. 441-3.

2 Cf. Money article in New York Times, November 10, 1862.

216 History of the greenbacks

When Congress assembled Chase's report showed that

unpaid requisitions were accumulating at a rapid rate, and

that the secretary had no suggestions for increased taxation,

but laid great stress upon his widely distrusted banking

scheme. Presently, inquiry in Congress called public atten-

tion to the fact that the pay of the army was in arrears, and

a third issue of United States notes was foreshadowed. The

administration was also sharply attacked for the suspension

of the writ of habeas corpus and for the monitory proclama-

tion of emancipation. Meanwhile there was a quarrel in the

Republican ranks. The caucus of the Senate advised the

president to reconstruct his cabinet, and in consequence the

secretaries of state and of the treasury both resigned, but

were prevailed upon by Mr. Lincoln to remain in office. The

greatmilitary eventof the month was Burnside's bloody repulse

at Fredericksburg with a loss of nearly 14,000 men. Under

this combination of depressing influences the first year of the

paper standard closed with a depreciation of 25 per cent.