Mr. Pike to Mr. Seward
Sir: The anxieties in regard to the military situation at home are not wholly relieved by the latest intelligence, notwithstanding General Grant’s marked successes.
Grant has acquired a European reputation, and the sneers at military incapacity in America are ended. But the fact that General Sherman finds no enemy in Georgia leads to a suspicion that the entire confederate force is being concentrated to be thrown upon Grant, and that, however tenacious and indomitable he may be, there is danger that he may find himself suddenly overwhelmed by superior forces.
If this perhaps over-cautious suspicion shall be found to be groundless, very significant conclusions will be drawn as to the waning strength of the rebellion.
Meantime alarm and surprise are deeply felt over the financial situation. The continued issue of legal tenders, until they had reached near 700 millions on the 14th of May, and the consequent continued rise in the price of gold and of all commodities of commerce, while our six per cent. loans are quoted at from 6 to 12 per cent. above par, is a condition of things which is looked upon with astonishment by the European financier. Why this ruinous inflation should be permitted, when it is plain it could be remedied by a six per cent. loan, quite surpasses the comprehension of observers here. The opinion prevails that the apparent effort of Mr. Chase to save one per cent. of interest is costing him an enormous increase of the principal of his loans, and unnecessarily precipitating a financial convulsion of the most alarming character.
I beg you to believe it is with the deepest pain I report these criticisms, and the more so that they are accompanied with the expression of disappointed expectations and the profoundest fears of the result of Mr. Chase’s apparent policy.
Affairs in Europe are unwarlike. The conference at London on the Dano-German question, though dragging but slowly along, yet gives promise of a settlement on the basis I suggested several weeks ago, namely, that of the severance of the whole of Holstein and the half of Schleswig from the Danish monarchy.
I have the honor to be, with great respect, your most obedient servant,
Hon. William H. Seward, Secretary of State, Washington.