April 1, 1864, Friday. The Chronicle of this morning contains my letter, with some errors, to the Senate in response to a call relating to transfers. It makes some commotion among the Members of Congress, and will cause some in the War Department, I presume.
There was nothing of special interest to-day in the Cabinet. Stanton was not present, nor was Blair. Chase calls for largely additional taxes, which I have no doubt are necessary. There should have been heavier taxes the last two years, — at least double what have been collected. Undoubtedly demagogues will try to prevent this necessary measure for party ends, but I believe the good sense and intelligence of the people will prevail over the debasing abuse of party. I apprehend that Chase is not making the most of his position, and think he has committed some errors. No one could have altogether avoided them.
Seward spoke to me concerning the case of the Sir William Peel, captured at the mouth of the Rio Grande. She had carried contraband ostensibly to Matamoras, but portions had gone direct to Brownsville, and cotton had been brought direct from that place in return. It is claimed, however, that she was captured in Mexican waters, though near the United States, and therefore Seward says she must be given up. I asked him to whom. If captured in Mexican waters, no power but Mexico could make the claim. This he undertook to deny, provided the government of Mexico was enfeebled by revolution and not able to sustain itself. But I told him if able to assert and maintain neutrality, then Mexico, and she alone, could intervene; if not able to maintain her claim of neutrality, no other one could make a claim of Mexican jurisdiction.
I am fearful he will make a misfire on this question. He has never looked into maritime law, and will make any sacrifice of national or individual rights to keep in with England.
