Received mail from Admiral Farragut. Among his dispatches one confidential, inclosing a letter from General Canby, who had received a singular order signed by the President, directing that one A. J. Hamilton should be permitted to export cotton from Sabine Pass, Galveston, etc., himself, and that Hamilton's written order should be a permit for others to export. As General Canby, to whom this document was directed, has no control over the squadron, he had inclosed the President's order to Admiral Farragut. The Admiral had transmitted it to the senior officer off Galveston, and communicated copies of the whole correspondence to me, remarking that it would lead to immense swindling.
I submitted this extraordinary document to the President, and remarked as I did so, that in the discussions that had taken place on this subject on two or three occasions within the last six weeks, and since this order (dated, I think, the 9th of August) was issued, no allusion had been made to it, that it conflicted with the blockade which the Department was obliged to enforce, and that I was surprised on receiving the information. The President seemed embarrassed but said he believed it was all right. “How right?” I inquired. He said it was one of Seward's arrangements, that he guessed would come out well enough; but evidently did not himself know, or, if he knew, was unwilling or unable to explain.
This is another specimen of the maladministration and improper interference of the Secretary of State. Commencing with the first expedition sent out to supply Sumter, which he took measures to defeat, there has been on his part a constant succession of wrong acts, impertinent intrigues in the affairs of other Departments, blunders and worse than blunders, that disgrace the Administration. There is unmistakable rascality in this cotton order. Thurlow Weed was here about the time it was issued, and it will not surprise me if he has an interest in it.
Seward thinks to keep his own name out of the transaction. The President has been made to believe that the order was essential; the Secretary of State has so presented the subject to him that he probably thought it a duty. There are times when I can hardly persuade myself that the President's natural sagacity has been so duped, but his confidence in Seward is great, although he must know him to be, I will not say a trickster, because of his position and our association, but over-cunning to be strictly honest. And when I say this, I do not apply to him dishonesty in money transactions when dealing with men, or the government perhaps, but political cheating, deceiving, wrong administration. He knows this scheme to bring out cotton was a fraud, and hence, instead of coming directly to me, who have charge of the blockade, or bringing the question before the Cabinet in a frank and honorable manner, there is this secret, roundabout proceeding, so characteristic of the Secretary of State.
He insisted on a blockade at the beginning. Would not listen to closing the ports. Would make it an international, not permit it to be a domestic, question. Now, in violation of international law and of fair and honorable blockade, he and his friends are secretly bringing out cotton from Texas. This is not in good faith, but is prostituting the government and its action. I regret that Farragut did not disregard the order until it came to him legitimately through the proper channel.
Had a call from my old friend the elder Blair. It was not unexpected. Detaching Lee from the North Atlantic Squadron I supposed would cause dissatisfaction to Lee, who would, through his wife, stimulate her father to make an effort in his behalf. The old man got word to-day that Lee was detached and hastened to me. He thought himself hard used in the blows that fell upon his children. Frank had been smitten for exposing Frémont and Chase. Montgomery had been dismissed from the Cabinet, and simultaneously Lee had been detached from his command after two years' faithful service. I told him the case appeared a hard one as he presented it; that I felt the removal of Montgomery from our counsels as the greatest misfortune that had befallen the Cabinet, but my consolation was that it would only be temporary and he would certainly soon have as honorable a position; that Frank had done and was doing great service, which the country would, if it did not already, appreciate; that Lee was not degraded in being assigned to another command. I knew him to be cautious and vigilant, but not, perhaps, the man for an immediate demonstration, an assault requiring prompt action. He had labored well, and in a pecuniary point of view been better paid than any man in the Navy.
The old man wanted me to recommend him for promotion to a full commission as rear-admiral, but that, I told him, followed deserving action. It must be earned.
Acting Admiral Lee has acquitted himself very well, has discharged his duties intelligently and firmly. But he can never be a great commander. While he has administered the affairs of his squadron safely, he has failed to devise and execute any important act. The same opportunities in the hands of Porter, or Foote, or Farragut, and, I think, of John Rodgers, would have shown vastly more important results. His caution runs into timidity. He is avaricious and ambitious, I fear ungenerous and illiberal; is destitute of heroic daring.
SOURCE: Gideon Welles, Diary of Gideon Welles, Secretary of the Navy Under Lincoln and Johnson, Vol. 2: April 1, 1864 — December 31, 1866, p. 159-62
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