PROSPECTS AT THE BEGINNING OF 1862--EXTREME CONFIDENCE OF THE SOUTH--EXTRAVAGANT EXPECTATIONS--THE RICHMOND EXAMINER ON CONFEDERATE PROSPECTS--WAR BETWEEN ENGLAND AND THE UNITED STATES PREDICTED--THE BLOCKADE TO BE RAISED--THE SOUTHERN CONFEDERACY DECREED BY HEAVEN-- RESULT OF THE BOASTFUL TONE OF THE SOUTHERN PRESS--THE CONFEDERATE GOVERNMENT NOT RESPONSIBLE FOR THE DISASTERS OF 1862--PRESIDENT DAVIS URGES PREPARATION FOR A LONG WAR--HIS WISE OPPOSITION TO SHORT ENLISTMENTS OF TROOPS--PREMONITIONS OF MISFORTUNES IN THE WEST--THE CONFEDERATE FORCES IN KENTUCKY--GENERAL ALBERT SIDNEY JOHNSTON--HIS CAREER BEFORE THE WAR--CHARACTER--APPEARANCE--THE FRIEND OF JEFFERSON DAVIS--MUTUAL ESTEEM--SIDNEY JOHNSTON IN KENTUCKY--HIS PLANS--HIS DIFFICULTIES--THE FORCES OF GRANT AND BUELL--CRUEL DILEMMA OF GENERAL SIDNEY JOHNSTON--A REVERSE--GRANT CAPTURES FORTS HENRY AND DONELSON-- LOSS OF KENTUCKY AND TENNESSEE--FEDERAL DESIGNS IN THE EAST--BURNSIDE CAPTURES ROANOKE ISLAND--SERIOUS NATURE OF THESE REVERSES--POPULAR DISAPPOINTMENT--ORGANIZED OPPOSITION TO THE CONFEDERATE ADMINISTRATION--CHARACTER AND MOTIVES OF THIS OPPOSITION--AN EFFORT TO REVOLUTIONIZE PRESIDENT DAVIS' CABINET--ASSAULTS UPON SECRETARIES BENJAMIN AND MALLORY--CORRECT EXPLANATION OF THE CONFEDERATE REVERSES--CONGRESSIONAL CENSURE OF MR. BENJAMIN--SECRETARY MALLORY--CHARACTERISTICS OF THE SOUTHERN MIND--THE PERMANENT GOVERNMENT--SECOND INAUGURATION OF MR. DAVIS--SEVERITY OF THE SEASON--THE CEREMONIES--APPEARANCE OF PRESIDENT DAVIS--HIS INAUGURAL ADDRESS--ITS EFFECT--POPULAR RE-ASSURANCE--MESSAGE TO CONGRESS-- COMMENTS OF RICHMOND PRESS. CHAPTER XII. (Page 361-389.)