27. The Federal authority was rapidly extended over the South. Mr. Davis and his cabinet escaped to Danville, and there for a few days kept up the forms of government. From that place they fled into North Carolina. The ex-President continued his flight into Georgia, and encamped near Irwinsville, where, on the 10th of May, he was captured by General Wilson's cavalry. He was conveyed to Fortress Monroe, and kept in confinement until May of 1867, when he was taken to Richmond to be tried for treason. He was admitted to bail; and his case was finally dismissed. [Sidenote: Nevada Admitted.] 28. At the presidential election of 1864, Mr. Lincoln was chosen for a second term. As Vice-president, Andrew Johnson of Tennessee was elected. In the preceding summer, the people of Nevada framed a constitution, and on the 31st of October the new commonwealth was proclaimed as the thirty-sixth State. The gold and silver mines of Nevada soon surpassed those of California in their yield of precious metals. [Sidenote: The Finances of the War.] 29. At the outbreak of the civil war the financial credit of the United States sank to a very low ebb. Mr. Chase, the Secretary of the Treasury, first sought relief by issuing TREASURY NOTES, receivable as money. By the beginning of 1862, the expenses of the government had risen to more than a million of dollars daily. To meet these tremendous demands on the government, Congress next provided INTERNAL REVENUE. This was made up from two general sources: first, _a tax on manufactures, incomes and salaries_; second, _a stamp-duty on all legal documents_. The next measure was the issuance of LEGAL TENDER NOTES of the United States, to be used as money. These are the notes called _Greenbacks_. The third great measure adopted by the government was the sale of UNITED STATES BONDS. The interest upon them was fixed at six per cent., payable semi-annually in gold. In the next place, Congress passed an act providing for the establishment of NATIONAL BANKS. National bonds, instead of gold and silver, were used as a basis of the circulation of these banks; and the redemption of their bills was guaranteed by the treasury of the United States. At the end of the conflict, _the national debt had reached nearly three thousand millions of dollars_. [Sidenote: =Pres. Lincoln's Assassination.=] 30. On the 4th of March, 1865, President Lincoln was inaugurated for his second term. Three days after the evacuation of Richmond by Lee's army, the President made a visit to that city. On the evening of the 14th of April, he, with his wife and a party of friends, attended Ford's Theater in Washington. As the play drew near its close, an actor, named John Wilkes Booth, stole into the President's box and shot him through the brain. Mr. Lincoln lingered in an unconscious state until morning, and died. It was the greatest tragedy of modern times. The assassin, after the murder, escaped into the darkness. [Sidenote: =Secretary Seward Stabbed.=]