But the truth is, that after the defeat of the War Party on the Danish Question, the English people in 1864 felt little interest in any foreign affairs save the Civil War in the United States, which is, however, hardly a foreign nation to Englishmen. They followed every phase of that struggle as closely as if it had been one of their own. The commercial community had good reason for doing so. Cotton was the favourite article for gambling with, and, when prices had risen to their highest point, suddenly rumours flew round to the effect that the war was coming to an end. Both sides were said to be tired of strife, and even Republican organs and orators began to hint that the end of Mr. Lincoln’s term of office in March, 1865, and the election of a new President in November, 1864, offered a good opportunity for a truce to hostilities. The Democratic Party were in favour of assembling a Convention of all the States to argue the points at issue between North and South, and everybody began to talk as if the Southern ports would soon be open. The price of cotton and the prices of other staples that had risen with it fell at once, and speculators for the rise were ruined. In September the pressure on the Money Market was enormously increased. The Leeds Bank failed; general distrust prevailed as to all financial institutions; and the Bank of England raised its rate of discount to 9 per cent. But when the weak and unstable firms were eliminated, low prices began to rule and attract buyers once again, and at the end of the year confidence revived, and the Bank rate dropped to 6 per cent. The wavering and tortuous policy of the Cabinet during the Danish Conference certainly produced one panic in the City during the early part of the year. Till spring let loose the dogs of war in America, the Northern and Southern armies were inactive. In April the rank of Lieutenant-General was conferred by Congress on General Grant, who took supreme command of all the Federal forces. He resolved to conduct the campaign in Virginia, while to General Sherman was entrusted the command of the Western army on the southern frontier of Tennessee. In the beginning of May both forces made their first move. On the 3rd of May Grant resolved to strike at Richmond, and he sent Meade with his main body over the Rapidan, so that he might gain the shelter of the wooded country south of Chancellorsville before General Lee, who covered Richmond, could attack him. Lee, however, foiled this movement by his prompt attack of the 5th and 6th of May, during which days the battle of Chancellorsville raged without ceasing. The Confederate Generals Longstreet and Jenkins fell in this fight, the result of which was not quite decisive. On former occasions, when Burnside and Hooker met with such an attack, they had shrunk from proceeding farther on the road to Richmond. But Grant was undaunted by the losses he had suffered, and persistently pressed Lee by