“If I decide this case in favor of my own Government, I must disavow its most cherished principles, and reverse and forever abandon its essential policy. The country cannot afford the sacrifice. If I maintain those principles and adhere to that policy, I must surrender the case itself.” The North, with high confidence in their President and Cabinet, readily conceded the wisdom of the argument, especially as it was clinched in the newspapers of the day by one of Lincoln’s homely remarks: “_One war at a time_.” A war with Great Britain was thus happily avoided. With the incidents of the war, however, save as they affected politics and politicians, this work has little to do, and we therefore pass the suspension of the _writ of habeas corpus_, which suspension was employed in breaking up the Maryland Legislature and other bodies when they contemplated secession, and it facilitated the arrest and punishment of men throughout the North who were suspected of giving “aid and comfort to the enemy.” The alleged arbitrary character of these arrests caused much complaint from Democratic Senators and Representatives, but the right was fully enforced in the face of every form of protest until the war closed. The most prominent arrest was that of Clement L. Vallandigham, member of Congress from Ohio, who was sent into the Southern lines. From thence he went to Canada, and when a candidate for Governor in Ohio, was defeated by over 100,000 majority. Financial Legislation—Internal Taxes. The Financial legislation during the war was as follows: _1860, December 17_—Authorized an issue of $10,000,000 in TREASURY NOTES, to be redeemed after the expiration of one year from the date of issue, and bearing such a rate of interest as may be offered by the lowest bidders. Authority was given to issue these notes in payment of warrants in favor of public creditors at their par value, bearing six per cent. interest per annum. _1861, February 8_—Authorized a LOAN of $25,000,000, bearing interest at a rate not exceeding six per cent. per annum, and reimbursable within a period not beyond twenty years nor less than ten years. This loan was made for the payment of the current expenses, and was to be awarded to the most favorable bidders. _March 2_—Authorized a LOAN of $10,000,000, bearing interest at a rate not exceeding six per cent. per annum, and reimbursable after the expiration of ten years from July 1, 1861. In case proposals for the loan were not acceptable, authority was given to issue the whole amount in TREASURY NOTES, bearing interest at a rate not exceeding six per cent. per annum. Authority was also given to substitute TREASURE NOTES for the whole or any part of the loans for which the Secretary was by law authorized to contract and issue bonds, at the time of the passage of this act, and such treasury notes were to be made receivable in payment of all public dues, and redeemable at any time within two years from March 2, 1861.