In the fall of 1862, he penned this for the Economist:
that the independence of the Southern Confederacy is a certain fact if not a fait accompli; that Jefferson Davis and his coadjutors have made the Confederacy a nation; that there is not the slightest prospect of their subjugation or forcible re-annexation; and that both by the resolution they have shown, the strength of they have put forth, and the victories they have won, they have shown that they can earn, if they have not yet fully earned the right to be admitted into the society of the world as a substantive and sovereign state.
-James Grant, Bagehot, The Life and Times of the Greatest Victorian
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