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ssociation and the National Association of Wool Manufacturers； which were soon in control of this immense industry。 Woolen mills sprang up so fast that a report of the New York Chamber of Commerce pronounced their increase 〃scarcely credible。〃 So great was the new market created by the Government demand； and so ruthless were the parasites in forcing up prices； that dividends on mill stock rose to 10； 15； 25； and even 40 per cent。 And all the while the wool growers and the wool manufacturers were clamoring to Congress for protection of the home industry； exclusion of the wicked foreign competition； and all in the name of their devoted 〃patriotism〃patriotism with a dividend of 40 per cent！
Of course； it is not meant that every wool grower and every woolen manufacturer was either a 〃disloyal〃 or a parasite。 By no means。 Numbers of them were to be found in that great host of 〃loyals〃 who put their dividends into government bonds and gave their services unpaid as auxiliaries of the Commissary Department or the Hospital Service of the Army。 What is meant is that the abnormal conditions of industry； uncorrected by the Government； afforded a glaring opportunity for unscrupulous men of business who； whatever their professions； cared a hundred times more for themselves than for their country。 To these was due the pitiless hampering of the army in the interest of the wool…trade。 For example； many uniforms paid for at outrageous prices； turned out to be made of a miserable cheap fabric； called 〃shoddy；〃 which resisted weather scarcely better than paper。 This fraud gave the word 〃shoddy〃 its present significance in our American speech and produced the phraseapplied to manufacturers newly become rich〃shoddy aristocracy。〃 An even more shameful result of the selfishness of the manufacturers and of the weakness of the Government was the use of cloth for uniforms not of the regulation colors； with the result that soldiers sometimes fired upon their comrades by mistake。
The prosperity of the capitalists who financed the woolen business did not extend to the labor employed in it。 One of the ugliest details of the time was the resolute attempt of the parasites to seize the whole amount of the abnormal profits they wrung from the Government and from the people。 For it must not be forgotten that the whole nation had to pay their prices。 It is estimated that prices in the main advanced about 100 per cent while wages were not advanced more than sixty per cent。 It is not strange that these years of war form a period of bitter antagonism between labor and capital。
What went on in the woolen business is to be found more or less in every business。 Immense fortunes sprang up over night。 They had but two roots： government contracts and excessive profits due to war prices。 The gigantic fortunes which characterized the North at the end of the war are thus accounted for。 The so…called prosperity of the time was a class prosperity and was absorbed by parasites who fattened upon the necessities of the Government and the sacrifices of the people。
CHAPTER XII。 THE MEXICAN EPISODE
That French demagogue whom Victor Hugo aptly called Napoleon the Little was a prime factor in the history of the Union and the Confederacy。 The Confederate side of his intrigue will be told in its proper place。 Here； let us observe him from the point of view of Washington。
It is too much to attempt to pack into a sentence or two the complicated drama of deceit； lies； and graft； through which he created at last a pretext for intervention in the affairs of Mexico； it is enough that in the autumn of 1862 a French army of invasion marched from Vera Cruz upon Mexico City。 We have already seen that about this same time Napoleon proposed to England and Russia a joint intervention with France between North and Southa proposal which； however； was rejected。 This Mexican venture explains why the plan was suggested at that particular time。
Disappointed in England and Russia； Napoleon unexpectedly received encouragement； as he thought； from within the United States through the medium of the eccentric editor of the 〃New York Tribune〃。 We shall have occasion to return later to the adventures of Horace Greeleythat erratic individual who has many good and generous acts to his credit； as well as many foolish ones。 For the present we have to note that toward the close of 1862 he approached the French Ambassador at Washington with a request for imperial mediation between the North and the South。 Greeley was a type of American that no European can understand： he believed in talk； and more talk； and still more talk； as the cure for earthly ills。 He never could understand that anybody besides himself could have strong convictions。 When he told the Ambassador that the Emperor's mediation would lead to a reconciliation of the sections； he was doubtless sincere in his belief。 The astute European diplomat； who could not believe such simplicity； thought it a mask。 When he asked for； and received； permission to pass the Federal lines and visit Richmond； he interpreted the permit in the light of his assumption about Greeley。 At Richmond； he found no desire for reunion。 Putting this and that together； he concluded that the North wanted to give up the fight and would welcome mediation to save its face。 The dreadful defeat at Fredericksburg fell in with this reasoning。 His reports on American conditions led Napoleon； in January； 1863； to attempt alone what he had once hoped to do supported by England and Russia。 He proposed his good offices to the Government at Washington as a mediator between North and South。
Hitherto； Washington had been very discreet about Mexico。 Adroit hints not to go too far had been given Napoleon in full measure； but there was no real protest。 The State Department now continued this caution and in the most polite terms declined Napoleon's offer。 Congress； however； took the matter more grimly； for throughout the dealings with Napoleon； it had been at odds with Lincoln。 It now passed the first of a series of resolutions which expressed the will of the country； if not quite the will of the President； by resolving that any further proposal of mediation would be regarded by it as 〃an unfriendly act。〃
Napoleon then resumed his scheming for joint intervention； while in the meantime his armies continued to fight their way until they entered Mexico City in June； 1863。 The time had now come when Napoleon thought it opportune to show his hand。 Those were the days when Lee appeared invincible； and when Chancellorsville crowned a splendid series of triumphs。 In England； the Southern party made a fresh start； and societies were organized to aid the Confederacy。 At Liverpool； Laird Brothers were building； ostensibly for France； really for the Confederacy； two ironclads supposed to outclass every ship in the Northern navy。 In France； 100；000 unemployed cotton hands were rioting for food。 To raise funds for the Confederacy the great Erlanger banking…house of Paris negotiated a loan based on cotton which was to be delivered after the breaking of the blockade。 Napoleon dreamed of a shattered American union； two enfeebled republics； and a broad way for his own scheme in Mexico。
In June an English politician of Southern sympathies； Edward Roebuck； went over to France； was received by the Emperor； and came to an understanding with him。 Roebuck went home to report to the Southern party that Napoleon was ready to intervene； and that all he waited for was England's cooperation。 A motion 〃to enter into negotiations with the Great Powers of Europe for the purpose of obtaining their cooperation in the recognition〃 of the Confederacy was introduced by Roebuck in the House of Commons。
The debate which followed was the last chance of the Southern party and； as events proved； the last chance of Napoleon。 How completely the British ministry was now committed to the North appears in the fact that Gladstone； for the Government； opposed Roebuck's motion。 John Bright attacked it in what Lord Morley calls 〃perhaps the most powerful and the noblest speech of his life。〃 The Southern party was hardly resolute in their support of Roebuck and presently he withdrew his motion。
But there were still the ironclads at Liverpool。 We have seen that earlier in the war； the carelessness of the British authorities had permitted the escape of ship 290； subsequently known as the Confederate commercedestroyer； Alabama。 The authorities did not wish to allow a repetition of the incident。 But could it be shown that the Laird ships were not really for a French purchaser？ It was in the course of diplomatic conversations that Mr。 Adams； speaking of the possible sailing of the ships； made a remark destined to become famous： 〃It would be superfluous in me to point out to your lordship that this is war。〃 At jest； the authorities were satisfied。 The ships were seized and in the end bought for the British Navy。
Again Napoleon stood alone。 Not only had he failed to obtain aid from abroad； but in France itself his Mexican schemes were widely and bitterly condemned。 Yet he had gone too far to recede； and what he had been aiming at all along was now revealed。 An assembly of Mexican