CHAPTER XXI
 

tllE issue of enormous quantities of green¬
backs which were freely spent by the sol¬
diers and government purchasing agents,
caused during the spring of 1862, "flush"
times in AVashington County. Money was very
abundant. It was difficult for the fortunate pos¬
sessors to find proper investments for it, and the
habit of spending with greater freedom than at
any former time, was contracted by the people.
The Hagerstown Bank was almost overwhelmed
with money and in May reduced its capital stock
from $250,000 to $150,000, which it was authorized
to do by an Act of the Legislature at its previous
session. This step was also deemed advisable by
reason of abandonment of its circulation, which
was made necessary by the government tax under
the National Banking Law. A considerable sum
of money was brought into the County from the
State Treasury. The Legislature of 1862 enacted
a "Dependent Pension" bill for the relief of the
families of Maryland Volunteers. For the dis¬
bursement of the money a commissioner was ap¬
pointed for each County. F. Dorsey Herbert was
the Commissioner for Washington County.

The First Maryland Regiment had gone to
the front from the camp at Williamsport, and was
under Banks at Front Royal in the battle of May,
1862. The news of the Federal defeat at Front
Royal caused the wildest excitement in Hagers¬
town. It was reported that the 1st Maryland had
been entirely cut to pieces, and that its command¬
er. Col. John R. Kenly, and other officers of the
Regiment had been wounded and taken prisoners,
and had then had their throats cut by their captors.
Colonel Kenly was greatly beloved by the Union
 

people of Washington County, and the belief that
he had been murdered drove them almost to fren¬
zy. They were in such a state of mind at this
time that they were prepared to believe the South¬
ern people capable of any crime, ho"wever re¬
volting.

Col. Kenly was a man to inspire feelings of the
warmest admiration. He was born in Baltimore
in 1822, and practiced law in that city from 1845
to 1893 except while he was in the army. He led
a company of volunteers into the Mexican war,
and distinguished himself for his bravery. Upon
the conclusion of the Mexican war, he received the
thanks of the State of Maryland by a vote of the
General Assembly. In 1861, he promptly joined
the Union Army and during the great struggle
he attained the rank of Major General of Volun¬
teers, having served for a time as provost marshal
of Baltimore. For his services he, for a second
time, was honored by a vote of thanks from the
General Assembly, and the city of Baltimore pre¬
sented a sword to him. Down to 1892 Gen. Kenly
was still living a retired life in Baltimore, and
although poor, further added to his distinction by
refusing a pension from the Government. It yvas
for his gallant conduct at the Battle of Front
Royal that the rank of Brigadier General was
conferred upon him. He was taken prisoner in
the fight and released upon his parole. He was
wounded on his head by a sabre cut. He was re^
ceived in Hagerstown with great enthusiasm. The
Federal Army had been chased from Front Royal
to the banks of the Potomac and the soldiers cross¬
ed the river greatly demoralized. The secession¬
ists in Hagerstown precipitated the riots that fol-