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196 hold the principal custom-houses on the Atlantic and Gulf Coast until the indemnity was paid.

A council of war was called by the President for the purpose of discussing the military situation. Present were the Cabinet, the Chief of Staff of the Army, and the President of the General Board of the Navy.

The President of the United States, whose poise, so far as any outward indications might show, seemed to have been in no wise disturbed by the stupendous calamity which had overtaken the country, said:

"The question as to whether it will be the part of wisdom to accept the conditions of the enemy, or carry on the war until he is crushed and driven back to the sea, is a naval and military one. There are two questions, indeed, to be answered: Is there any possibility of our defeating the enemy