If June had shown the possibility of a rise in the face of

military reverses, July showed how powerful a stimulant was

military success. It was a month of victories Gettysburg,

Vicksburg, and Port Hudson. These great successes, with

Sherman's expulsion of Johnson from Jackson, the repulse

of the Confederates at Helena, and the capture of Morgan

and his raiders in Ohio, completely overshadowed the draft

riot in New York and a few Union reverses. On the 15th

President Lincoln appointed a day of thanksgiving, and on

the 25th President Davis a day of fasting and prayer. The

advance of the currency over June was $7.40.

i Bankers' Magazine, Vol. XVIII, p. 607.

220 HISTORY OP THE GREENBACKS

August continued the good times. In a military way the

month lacked dramatic features, for Grant, Meade, and Lee

were allowing their troops a rest, essential after the furious

campaigning of July. Rosecrans, however, began his

advance against Bragg at Chattanooga, and Burnside moved

on Knoxville. Much encouragement was received from the

vigorous pushing of the siege of Charleston. 1 The draft in

New York, which had been interrupted by riots, was resumed

and completed. Elections in Kentucky, Vermont, and Cali-

fornia resulted most favorably for the administration candi-

dates. Under these circumstances the currency reached

$79.50 a higher level than was again attained during the

war.

4. The fall from September, 1863, to July, 1864. Many

had expected after the great victories of July that the end

of the rebellion was at hand. But much to the chagrin of

the president and the public, Lee, instead of being annihi-

lated was suffered to withdraw unmolested across the Poto-

mac, and was soon confronting Meade in the old positions

along the Rappahannock. Early in September news of

positive disaster was added to this disappointment. At

Chickamauga Rosecrans lost 16,000 men and narrowly

escaped the destruction of his whole army. The news

caused a fall of nearly $3 in a single day. So the currency

declined from $78.82 on the opening day of September to

$69.87 on the 29th.

From the last of September to the close of the year there

was a slow but tolerably steady depreciation. The lowest

point of the period was $63.80, October 15, caused by rumors

of another forward movement by Lee. After Longstreet had

been sent west to reinforce Bragg, Hooker was also dispatched

with two corps to help Rosecrans. Lee then threatened to

turn Meade's flank and compelled him to fall back on Bull

1 New York Times, money articles, July 15, 17, and August 25, 1863.

SPECIE VALUE OP THE PAPER CURRENCY 221

Run. The operations in Virginia, however, were less important

than those in Tennessee, where Grant relieved Rosecrans,

who had allowed himself to be cooped up in Chattanooga by

Bragg. In November the lowest prices, those of the 21st

and 23d, were due to the investment by Longstreet of Knox-

Ville, where Burnside's forces lay ; the highest, on the 27th,

to Grant's spectacular victories at Chattanooga. December

was a very quiet month with a slight range of variation.

Sherman averted disaster to Burnside by hurrying from

Chattanooga to Knoxville and forcing Longstreet to raise

the siege. In the East Meade recrossed the Rapidan and

went into winter quarters. Congress assembled and received

a treasury report of rather cheerful tenor, despite the fact

that Chase found it necessary to ask authority for borrowing

$900,000,000.

During the first three months of 1864 the slow decline

continued. In January the armies lay nearly still both east

and west. On the 1st of February a draft was ordered for

half a million men to serve three years or for the war.

Butler's sally from Fortress Monroe, made in the hope of

taking Richmond by surprise and freeing the prisoners of

war, was frustrated by a deserter who alarmed the Confed-

erates, and Kilpatrick's cavalry on a similar mission suc-

ceeded in penetrating the first and second line of defenses

about the city, but were repulsed from the third. Late in

the month the Florida expedition received a serious check at

Olustree. In Mississippi Sherman succeeded in destroying

Meridian and effectually cutting the line of railway that

supplied Mobile from the North, but the hoped-for destruc-

tion of Pope's army was not accomplished because the co-op-

erating cavalry failed to do its expected part in the cam-

paign. In March the ill-fated Red River expedition set out,

and the Confederate general Forrest defeated W. S. Smith

at Okalonaj re-captured Jackson, the capital of Mississippi,