The U.S. Congress approves legislation to pay for the war, including the first-ever personal income tax.
George B. McClellan develops a Federal war strategy while complaining that Winfield Scott is standing in his way.
General Benjamin F. Butler pushes the Lincoln administration to set a firm policy regarding fugitive slaves behind Federal lines.
The Federal military is reorganized following the Bull Run defeat, which includes giving command of the largest army to a young, promising general.
News of the previous day’s Confederate victory at Bull Run prompts celebrations in the South and depression in the North.
The C.S.S. Sumter completes her first raid on U.S. shipping, Federals strengthen their blockade, and a Federal crew takes on Confederate privateers.