* See Stephenson, "Abraham Lincoln and the Union," in "The Chronicles of America."America laid claims against Great Britain, based not merely on the actual destruction of merchantmen by the Alabama, the Florida, and other Confederate vessels built in British yards, but also on such indirect losses as insurance, cost of pursuit, and commercial profits.The American Minister, Charles Francis Adams, had proposed the arbitration of these claims, but the British Ministry, declined to arbitrate matters involving the honor of the country.Adams's successor, Reverdy Johnson, succeeded in arranging a convention in 1868 excluding from consideration all claims for indirect damages, but this arrangement was unfavorably reported from the Committee on Foreign Affairs in the Senate.It was then that Charles Sumner, Chairman of the Committee, gave utterance to his astounding demands upon Great Britain.The direct claims of the United States, he contended, were no adequate compensation for its losses; the indirect claims must also be made good, particularly those based on the loss of the American merchant marine by transfer to the British flag.The direct or "individual" American losses amounted to $15,000,000."But this leaves without recognition the vaster damage to commerce driven from the ocean, and that other damage, immense and infinite, caused by the prolongation of the war, all of which may be called NATIONAL in contradistinction to INDIVIDUAL." Losses to commerce he reckoned at $110,000,000, adding that this amount must be considered only an item in the bill, for the prolongation of the war was directly traceable to England."The rebellion was suppressed at a cost of more than four thousand million dollars...through British intervention the war was doubled in duration;...England is justly responsible for the additional expenditure." Sumner's total bill against Great Britain, then, amounted to over $2,000,000,000; "everyone," said he, "can make the calculation."Had an irresponsible member of Congress made these demands, they might have been dismissed as another effort to twist the British lion's tail; but Charles Sumner took himself seriously, expected others to take him seriously, and unhappily was taken seriously by a great number of his fellow countrymen.The explanation of his preposterous demand appeared subsequently in a memorandum which he prepared.To avoid all possible future clashes with Great Britain, he would have her withdraw from the American continents and the Western Hemisphere.Great Britain might discharge her financial obligations by transferring to the United States the whole of British America! And Sumner seems actually to have believed that he was promoting the cause of international good will by this tactless proposal.

For a time it was believed that Sumner spoke for the Administration, and public opinion in the United States was disposed to look upon his speech as a fair statement of American grievances and a just demand for compensation.The British Government, too, in view of the action of the Senate and the indiscreet utterances of the new American Minister in London, John Lothrop Motley, believed that President Grant favored an aggressive policy.Further negotiations were dropped.Both Governments, nevertheless, were desirous of coming to an understanding, though neither wished to take the first step.