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asked in the way of moral reparation from a high-spirited people conscious of their strength. As far as pecuniary damages were concerned, our case, already very strong, was made absolutely secure by the terms submitting the dispute to arbitration. That the score has been wiped out should be recognized at the bar of history. 12 McClellan’s failure on the Peninsula, Pope’s inglorious campaign resulting in his crushing defeat at the second battle of Bull Run, during the summer of 1862, had a profound influence on the governors of England. The correspondence between Palmerston and Russell indicates that they were about ready to propose to the Cabinet that England should take the initiative and ask France, Russia and the other powers to join her in some intervention in the struggle in America. The Federals “got a very complete smashing,” wrote the Prime Minister on September 14; and if Washington or Baltimore “fall into the hands of the Confederates,” as “seems not altogether unlikely,” should not England and France “address the contending parties and recommend an arrangement upon the basis of separation?” Russell replied: “I agree with you that the time has come for offering mediation to the United States Government with a view to the recognition of the Confederates. I agree further, that in case of failure, we ought ourselves to recognize the Southern States as an independent State.” He suggested, moreover, a meeting of the Cabinet, and if a decision were arrived at, to propose, first, the intervention to France and “then on the part of England and France to Russia and the other powers.” When Palmerston replied to this letter, he was watching the Antietam campaign, and thought that if the Federals should sustain “a great defeat” it would be well to proceed with the project of mediation;

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