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War speculation in cotton—In business partnership with Roscoe Conkling—Appointed special commissioner to Grant's army—The story of a cipher code—From Memphis to Milliken's Bend—The various plans for taking Vicksburg—At Grant's headquarters—The beginning of trouble with McClernand.

As Mr. Stanton had no immediate need of my services, I returned in August to New York, where I was occupied with various private affairs until the middle of November, when I received a telegram from Assistant-Secretary-of-War P. H. Watson, asking me to go immediately to Washington to enter upon another investigation. I went, and was received by Mr. Stanton, who offered me the place of Assistant Secretary of War. I said I would accept.

"All right," said he; "consider it settled."

As I went out from the War Department into the street I met Major Charles G. Halpine—"Miles O'Reilly"—of the Sixty-ninth New York Infantry. I had known Halpine well as a newspaper man in New York, and I told him of my appointment as Mr. Stanton's assistant. He immediately repeated what I had told him to some newspaper people. It was reported in the New York papers the next morning. The Secretary was greatly offended and withdrew the appointment. When I told Halpine I had, of course, no idea he was going to repeat it; besides, I did not think there was any harm in telling.

Immediately after this episode I formed a partnership with Roscoe Conkling and George W. Chadwick to buy cotton. The outcry which the manufacturers had raised over the inability to get cotton for their industries had induced the Government to permit trading through the lines of the army, and the business looked profitable. Conkling and I each put ten thousand dollars into the firm, and Chadwick gave his services, which, as he was an expert in cotton, was considered equal to our capital. To facilitate our operations, I went to Washington to ask Mr. Stanton for letters of recommendation to the generals on and near the Mississippi, where we proposed to begin our purchases. Mr. Stanton and I had several conversations about the advisability of allowing such traffic, but he did not hesitate about giving me the letters I asked. There were several of them: one to General Hurlbut, then at Memphis; another to General Grant, who had begun his movement against Vicksburg; and another to General Curtis, who commanded in Arkansas. The general purport of them was: "Mr. Dana is my friend; you can rely upon what he says, and if you can be kind to him in any way you will oblige me."

It was in January, 1863, that Chadwick and I went to Memphis, where we stayed at the Gayoso House, at that time the swell hotel of the town and the headquarters of several officers.

It was not long after I began to study the trade in cotton before I saw it was a bad business and ought to be stopped. I at once wrote Mr. Stanton the following letter, which embodied my observations and gave my opinion as to what should be done:

Memphis, January 21, 1863.

Dear Sir: You will remember our conversations on the subject of excluding cotton speculators from the regions occupied by our armies in the South. I now write to urge the matter upon your attention as a measure of military necessity.

The mania for sudden fortunes made in cotton, raging in a vast population of Jews and Yankees scattered throughout this whole country, and in this town almost exceeding the numbers of the regular residents, has to an alarming extent corrupted and demoralized the army. Every colonel, captain, or quartermaster is in secret partnership with some operator in cotton; every soldier dreams of adding a bale of cotton to his monthly pay. I had no conception of the extent of this evil until I came and saw for myself.

Besides, the resources of the rebels are inordinately increased from this source. Plenty of cotton is brought in from beyond our lines, especially by the agency of Jewish traders, who pay for it ostensibly in Treasury notes, but really in gold.

What I would propose is that no private purchaser of cotton shall be allowed in any part of the occupied region.

Let quartermasters buy the article at a fixed price, say twenty or twenty-five cents per pound, and forward it by army transportation to proper centers, say Helena, Memphis, or Cincinnati, to be sold at public auction on Government account. Let the sales take place on regular fixed days, so that all parties desirous of buying can be sure when to be present.

But little capital will be required for such an operation. The sales being frequent and for cash, will constantly replace the amount employed for the purpose. I should say that two hundred thousand dollars would be sufficient to conduct the movement.

I have no doubt that this two hundred thousand dollars so employed would be more than equal to thirty thousand men added to the national armies.

My pecuniary interest is in the continuance of the present state of things, for while it lasts there are occasional opportunities of profit to be made by a daring operator; but I should be false to my duty did I, on that account, fail to implore you to put an end to an evil so enormous, so insidious, and so full of peril to the country.

My first impulse was to hurry to Washington to represent these things to you in person; but my engagements here with other persons will not allow me to return East so speedily. I beg you, however, to act without delay, if possible. An excellent man to put at the head of the business would be General Strong. I make this suggestion without any idea whether the employment would be agreeable to him.

Yours faithfully, Charles A. Dana.

Mr. Stanton.

P.S.—Since writing the above I have seen General Grant, who fully agrees with all my statements and suggestions, except that imputing corruption to every officer, which of course I did not intend to be taken literally.

I have also just attended a public sale by the quartermaster here of five hundred bales of cotton confiscated by General Grant at Oxford and Holly Springs. It belonged to Jacob Thompson and other notorious rebels. This cotton brought to-day over a million and a half of dollars, cash. This sum alone would be five times enough to set on foot the system I recommend, without drawing upon the Treasury at all. In fact, there can be no question that by adopting this system the quartermaster's department in this valley would become self-supporting, while the army would become honest again, and the slaveholders would no longer find that the rebellion had quadrupled the price of their great staple, but only doubled it.

As soon as I could get away from Memphis I went to Washington, where I had many conversations with Mr. Lincoln and Mr. Stanton about restricting the trade in cotton. They were deeply interested in my observations, and questioned me closely about what I had seen. My opinion that the trade should be stopped had the more weight because I was able to say, "General Grant and every general officer whom I have seen hopes it will be done."

The result of these consultations was that on March 31, 1863, Mr. Lincoln issued a proclamation declaring unlawful all commercial intercourse with the States in insurrection, except when carried on according to the regulations prescribed by the Secretary of the Treasury. These regulations Mr. Chase prepared at once. At the same time that Mr. Lincoln issued his proclamation, Mr. Stanton issued an order forbidding officers and all members of the army to have anything to do with the trade. In spite of all these regulations, however, and the modifications of them which experience brought, there was throughout the war more or less difficulty over cotton trading.

From Washington I went back to New York. I had not been there long before Mr. Stanton sent for me to come to Washington. He wanted some one to go to Grant's army, he said, to report daily to him the military proceedings, and to give such information as would enable Mr. Lincoln and himself to settle their minds as to Grant, about whom at that time there were many doubts, and against whom there was some complaint.

"Will you go?" Mr. Stanton asked. "Yes," I said. "Very well," he replied. "The ostensible function I shall give you will be that of special commissioner of the War Department to investigate the pay service of the Western armies, but your real duty will be to report to me every day what you see."

On March 12th Mr. Stanton wrote me the following letter:

War Department,

Washington City, March 12, 1863.

Dear Sir: I inclose you a copy of your order of appointment and the order fixing your compensation, with a letter to Generals Sumner,[B] Grant, and Rosecrans, and a draft for one thousand dollars. Having explained the purposes of your appointment to you personally, no further instructions will be given unless specially required. Please acknowledge the receipt of this, and proceed as early as possible to your duties.

Yours truly, Edwin M. Stanton.

C. A. Dana, Esq., New York.

My commission read:

Ordered, That C. A. Dana, Esq., be and he is hereby appointed special commissioner of the War Department to investigate and report upon the condition of the pay service in the Western armies. All paymasters and assistant paymasters will furnish to the said commissioner for the Secretary of War information upon any matters concerning which he may make inquiry of them as fully and completely and promptly as if directly called for by the Secretary of War. Railroad agents, quartermasters, and commissioners will give him transportation and subsistence. All officers and persons in the service will aid him in the performance of his duties, and will afford him assistance, courtesy, and protection. The said commissioner will make report to this department as occasion may require.

The letters of introduction and explanation to the generals were identical:

General: Charles A. Dana, Esq., has been appointed a special commissioner of this department to investigate and report upon the condition of the pay service in the Western armies. You will please aid him in the performance of his duties, and communicate to him fully your views and wishes in respect to that branch of the service in your command, and also give to him such information as you may deem beneficial to the service. He is specially commended to your courtesy and protection. Yours truly,

Edwin M. Stanton.

I started at once for Memphis, going by way of Cairo and Columbus.

I sent my first dispatch to the War Department from Columbus, on March 20th. It was sent by a secret cipher furnished by the War Department, which I used myself, for throughout the war I was my own cipher clerk. The ordinary method at the various headquarters was for the sender to write out the dispatch in full, after which it was translated from plain English into the agreed cipher by a telegraph operator or clerk retained for that exclusive purpose, who understood it, and by another it was retranslated back again at the other end of the line. So whatever military secret was transmitted was at the mercy always of at least two outside persons, besides running the gantlet of other prying eyes. Dispatches written in complex cipher codes were often difficult to unravel, unless transmitted by the operator with the greatest precision. A wrong word sometimes destroyed the sense of an entire dispatch, and important movements were delayed thereby. This explains the oft-repeated "I do not understand your telegram" found in the official correspondence of the war period.

I have become familiar since the war with a great many ciphers, but I never found one which was more satisfactory than that which I used in my messages to Mr. Stanton. In preparing my message I first wrote it out in lines of a given number of words, spaced regularly so as to form five, six, seven, eight, nine, and ten columns. My key contained various "routes," to be followed in writing out the messages for transmission. Thus, a five-column message had one route, a six-column another, and so on. The route was indicated by a "commencement word." If I had put my message into five columns, I would write at the beginning the word "Army," or any one in a list of nine words. The receiver, on looking for that word in his key, would see that he was to write out what he had received in lines of five words, thus forming five columns; and then he was to read it down the fifth column, up the third, down the fourth, up the second, down the first. At the end of each column an "extra" or "check" word was added as a blind. A list of "blind" words was also printed in the key, with each route, which could be inserted, if wished, at the end of each line so as still further to deceive curious people who did not have the key. The key contained also a large number of cipher words. Thus, P. H. Sheridan was "soap" or "Somerset"; President was "Pembroke" or "Penfield." Instead of writing "there has been," I wrote "maroon"; instead of secession, "mint"; instead of Vicksburg, "Cupid." My own cipher was "spunky" or "squad." The days, months, hours, numerals, and alphabet all had ciphers.

The only message sent by this cipher to be translated by an outsider on the route, so far as I know, was that one of 4 P.M., September 20, 1863, in which I reported the Union defeat at Chickamauga. General R. S. Granger, who was then at Nashville, was at the telegraph office waiting for news when my dispatch passed through. The operator guessed out the dispatch, as he afterward confessed, and it was passed around Nashville. The agent of the Associated Press at Louisville sent out a private printed circular quoting me as an authority for reporting the battle as a total defeat, and in Cincinnati Horace Maynard repeated, the same day of the battle, the entire second sentence of the dispatch, "Chickamauga is as fatal a name in our history as Bull Run."

This premature disclosure to the public of what was only the truth, well known at the front, caused a great deal of trouble. I immediately set on foot an investigation to discover who had penetrated our cipher code, and soon arrived at a satisfactory understanding of the matter, of which Mr. Stanton was duly informed. No blame could attach to me, as was manifest upon the inquiry; nevertheless, the sensation resulted in considerable annoyance all along the line from Chattanooga to Washington. I suggested to Mr. Stanton the advisability of concocting a new and more difficult cipher, but it was never changed, so far as I now remember.

It was from Columbus, Ky., on March 20, 1863, that I sent my first telegram to the War Department. I did not remain in Columbus long, for there was absolutely no trustworthy information there respecting affairs down the river, but took a boat to Memphis, where I arrived on March 23d. I found General Hurlbut in command. I had met Hurlbut in January, when on my cotton business, and he gave me every opportunity to gather information concerning the operations against Vicksburg. Four different plans for reaching the city were then on foot, the essential element of all of them being to secure for the army on the high ground behind the city a foothold whence it could strike, and at the same time be supplied from a river base. The first and oldest and apparently most promising of these plans was that of the canal across the neck of the peninsula facing Vicksburg, on the Louisiana side. When I reached Memphis this canal was thought to be nearly done.

The second route was by Lake Providence, about forty miles north of Vicksburg, in Louisiana. It was close to the western bank of the Mississippi, with which it was proposed to connect it by means of a canal. The Bayou Macon connected Lake Providence with the Tensas River. By descending the Tensas to the Washita, the Washita to the Red, the Red to the Mississippi, the army could be landed on the east bank of the Mississippi about one hundred and fifty miles south of Vicksburg, and thence could be marched north. McPherson, with his Seventeenth Corps, had been ordered by Grant on January 30th to open this route. It was reported at Memphis when I arrived there that the cutting of Lake Providence was perfectly successful, but that Bayou Macon was full of snags, which must be got out before the Tensas would be accessible.

The third and fourth routes proposed for getting behind Vicksburg—namely, by Yazoo Pass and Steele's Bayou—were attracting the chief attention when I reached Memphis. Yazoo Pass opened from the eastern bank of the Mississippi at a point about one hundred and fifty miles above Vicksburg into Moon Lake, and thence into the Coldwater River. Through the Coldwater and the Tallahatchie the Yazoo River was reached. If troops could follow this route and capture Haynes's Bluff, fourteen miles from the mouth of the Yazoo, Vicksburg at once became untenable. The Yazoo Pass operation had begun in February, but the detachment had had bad luck, and on my arrival at Memphis was lying up the Yallabusha waiting for re-enforcements and supplies.

An attempt was being made also to reach the Yazoo by a roundabout route through Steele's Bayou, Deer Creek, the Rolling Fork, and the Big Sunflower. Grant had learned of this route only a short time before my arrival, and had at once sent Sherman with troops and Admiral Porter with gunboats to attempt to reach the Yazoo. On March 27th reports came to Memphis that Sherman had landed twenty regiments on the east bank of the Yazoo above Haynes's Bluff, and that the gunboats were there to support him. Reports from other points also were so encouraging that the greatest enthusiasm prevailed throughout the army, and General Grant was said to be dead sure he would have Vicksburg within a fortnight.

Five days later, however, we heard at Memphis that there had been a series of disasters in these different operations, that the Yazoo Pass expedition was definitely abandoned, and that General Grant had an entirely new plan of campaign.

I had not been long at Memphis before I decided that it was impossible to gather trustworthy news there. I had to rely for most of my information on the reports brought up the river by occasional officers, not all of whom were sure of what they told, and on the stories of persons coming from the vicinity of the different operations. Occasionally an intelligent planter arrived whom I was inclined to believe, but on the whole I found that my sources of information were few and uncertain. I accordingly suggested to Mr. Stanton, three days after my arrival, that I would be more useful farther down the river. In reply he telegraphed:

War Department,

Washington City, March 30, 1863.

C. A. Dana, Esq., Memphis, Tenn., via Cairo:

Your telegrams have been received, and although the information has been meager and unsatisfactory, I am conscious that arises from no fault of yours. You will proceed to General Grant's headquarters, or wherever you may be best able to accomplish the purposes designated by this department. You will consider your movements to be governed by your own discretion, without any restriction.

Edwin M. Stanton,

Secretary of War.

As soon after receiving his telegram as I could get a boat I left Memphis for Milliken's Bend, where General Grant had his headquarters. I reached there at noon on April 6th.

The Mississippi at Milliken's Bend was a mile wide, and the sight as we came down the river by boat was most imposing. Grant's big army was stretched up and down the river bank over the plantations, its white tents affording a new decoration to the natural magnificence of the broad plains. These plains, which stretch far back from the river, were divided into rich and old plantations by blooming hedges of rose and Osage orange, the mansions of the owners being inclosed in roses, myrtles, magnolias, oaks, and every other sort of beautiful and noble trees. The negroes whose work made all this wealth and magnificence were gone, and there was nothing growing in the fields.

For some days after my arrival I lived in a steamboat tied up to the shore, for though my tent was pitched and ready, I was not able to get a mattress and pillow. From the deck of the steamer I saw in those days many a wonderful and to me novel sight. One I remember still. I was standing out on the upper deck with a group of officers, when we saw far away, close to the other shore of the river, a long line of something white floating in the water. We thought it was foam, but it was too long and white, and that it was cotton which had been thrown into the river, but it was too straight and regular. Presently we heard a gun fired, then another, and then we saw it was an enormous flock of swans. They arose from the water one after the other, and sailed away up the river in long, curving, silver lines, bending and floating almost like clouds, and finally disappearing high up in the air above the green woods on the Mississippi shore. I suppose there were a thousand of them.

I had not been long at Milliken's Bend before I was on friendly terms with all the generals, big and little, and one or two of them I found were very rare men. Sherman especially impressed me as a man of genius and of the widest intellectual acquisitions. Every day I rode in one direction or another with an officer, inspecting the operations going on. From what I saw on my rides over the country I got a new insight into slavery, which made me no more a friend to that institution than I was before. I had seen slavery in Maryland, Kentucky, Virginia, and Missouri, but it was not till I saw these great Louisiana plantations with all their apparatus for living and working that I really felt the aristocratic nature of the institution, and the infernal baseness of that aristocracy. Every day my conviction was intensified that the territorial and political integrity of the nation must be preserved at all costs, no matter how long it took; that it was better to keep up the existing war as long as was necessary, rather than to make arrangement for indefinite wars hereafter and for other disruptions; that we must have it out then, and settle forever the question, so that our children would be able to attend to other matters. For my own part, I preferred one nation and one country, with a military government afterward, if such should follow, rather than two or three nations and countries with the semblance of the old Constitution in each of them, ending in wars and despotisms everywhere.

As soon as I arrived at Milliken's Bend, on April 6th, I had hunted up Grant and explained my mission. He received me cordially. Indeed, I think Grant was always glad to have me with his army. He did not like letter writing, and my daily dispatches to Mr. Stanton relieved him from the necessity of describing every day what was going on in the army. From the first neither he nor any of his staff or corps commanders evinced any unwillingness to show me the inside of things. In this first interview at Milliken's Bend, for instance, Grant explained to me so fully his new plan of campaign—for there was now but one—that by three o'clock I was able to send an outline of it to Mr. Stanton. From that time I saw and knew all the interior operations of that toughest of tough jobs, the reopening of the Mississippi.

The new project, so Grant told me, was to transfer his army to New Carthage, and from there carry it over the Mississippi, landing it at or about Grand Gulf; to capture this point, and then to operate rapidly on the southern and eastern shore of the Big Black River, threatening at the same time both Vicksburg and Jackson, and confusing the Confederates as to his real objective. If this could be done he believed the enemy would come out of Vicksburg and fight.

The first element in this plan was to open a passage from the Mississippi near Milliken's Bend, above Vicksburg, to the bayou on the west side, which led around to New Carthage below. The length of navigation in this cut-off was about thirty-seven miles, and the plan was to take through with small tugs perhaps fifty barges, enough, at least, to transfer the whole army, with artillery and baggage, to the other side of the Mississippi in twenty-four hours. If necessary, troops were to be transported by the canal, though Grant hoped to march them by the road along its bank. Part of McClernand's corps had already reached New Carthage overland, and Grant was hurrying other troops forward. The canal to the bayou was already half completed, thirty-five hundred men being at work on it when I arrived.

The second part of the plan was to float down the river, past the Vicksburg batteries, half a dozen steamboats protected by defenses of bales of cotton and wet hay; these steamboats were to serve as transports of supplies after the army had crossed the Mississippi.

Perhaps the best evidence of the feasibility of the project was found in the fact that the river men pronounced its success certain. General Sherman, who commanded one of the three corps in Grant's army, and with whom I conversed at length upon the subject, thought there was no difficulty in opening the passage, but that the line would be a precarious one for supplies after the army was thrown across the Mississippi. Sherman's preference was for a movement by way of Yazoo Pass, or Lake Providence, but it was not long before I saw in our daily talks that his mind was tending to the conclusion of General Grant. As for General Grant, his purpose was dead set on the new scheme. Admiral Porter cordially agreed with him.

An important modification was made a few days after my arrival in the plan of operations. It was determined that after the occupation of Grand Gulf the main army, instead of operating up the Big Black toward Jackson, should proceed down the river against Port Hudson, co-operating with General Banks against that point, and that after the capture of Port Hudson the two united forces should proceed against Vicksburg.

There seemed to be only one hitch in the campaign. Grant had intrusted the attack on Grand Gulf to McClernand. Sherman, Porter, and other leading officers believed this a mistake, and talked frankly with me about it. One night when we had all gathered at Grant's headquarters and were talking over the campaign very freely, as we were accustomed to do, both Sherman and Porter protested against the arrangement. But Grant would not be changed. McClernand, he said, was exceedingly desirous of the command. He was the senior of the other corps commanders. He was an especial favorite of the President, and the position which his corps occupied on the ground when the movement was first projected was such that the advance naturally fell to its lot; besides, he had entered zealously into the plan from the first, while Sherman had doubted and criticised, and McPherson, whom Grant said he would really have much preferred, was away at Lake Providence, and though he had approved of the scheme, he had taken no active part in it.

I believed the assignment of this duty to McClernand to be so dangerous that I added my expostulation to those of the generals, and in reporting the case to Mr. Stanton I wrote: "I have remonstrated so far as I could properly do so against intrusting so momentous an operation to McClernand."

Mr. Stanton replied: "Allow me to suggest that you carefully avoid giving any advice in respect to commands that may be assigned, as it may lead to misunderstanding and troublesome complications." Of course, after that I scrupulously observed his directions, even in extreme cases.

As the days went on everybody, in spite of this hitch, became more sanguine that the new project would succeed. For my part I had not a doubt of it, as one can see from this fragment written from Milliken's Bend on April 13th to one of my friends:

"Like all who really know the facts, I feel no sort of doubt that we shall before long get the nut cracked. Probably before this letter reaches New York on its way to you the telegraph will get ahead of it with the news that Grant, masking Vicksburg, deemed impregnable by its defenders, has carried the bulk of his army down the river through a cut-off which he has opened without the enemy believing it could be done; has occupied Grand Gulf, taken Port Hudson, and, effecting a junction with the forces of Banks, has returned up the river to threaten Jackson and compel the enemy to come out of Vicksburg and fight him on ground of his own choosing. Of course this scheme may miscarry in whole or in parts, but as yet the chances all favor its execution, which is now just ready to begin."

Recollections of the Civil War

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