Friday August 2, 1861
The Federal Congress passed the first national income tax measure, calling for 3 percent on incomes over $800. The bill also provided for new and stiffer tariffs.
Northern forces abandoned Fort Stanton, New Mexico Territory, in the face of the Confederate invasion of the Southwest. At Dug Springs, Missouri, not far from Springfield, a skirmish showed Federals that opposition forces of Missourians and Confederates were in the area. In southeastern Missouri there was a Federal reconnaissance from Ironton to Centreville.
While General Nathaniel Lyon was expecting serious trouble in southwestern Missouri, the department commander, General John C. Fremont, was steaming down the Mississippi from St. Louis with eight boats and reinforcements, which were enthusiastically welcomed at Cairo, Illinois.
At Fort Monroe, Virginia, General Benjamin Butler banned the sale of intoxicating liquors, but soldiers found ways of evading the order. Whiskey was found in the gun barrels of pickets and in hair oil bottles.
