Lincoln's faithful enforcement of the Fugitive Slave Law not only filled Washington, DC, jails with runaway slaves waiting to be claimed by their owners, but also enraged many who loathed slavery. In an effort to appease his party's abolitionist faction, Lincoln urged that the United States formally recognize the black republics of Haiti and Liberia, a proposal that Congress accepted.
In a letter to New York Times editor Henry J. Raymond urging support for the resolution, Lincoln explained that one million dollars, or less than a half-day's cost of the war, would buy all the slaves in Delaware, and that $174 million, or less than 87 days' cost of the war, would purchase all the slaves in the border states and the District of Columbia.
In an effort to assuage such concerns, in July Lincoln called border state Congressmen and Senators to a White House meeting at which he explained that the recently-passed resolution involved no claim of federal authority over slavery in the states, and that it left the issue under state control. Seeking to calm fears that emancipation would suddenly result in many freed Negroes in their midst, he again spoke of resettlement of blacks as the solution. "Room in South America for colonization can be obtained cheaply, and in abundance," said the President. "And when numbers shall be large enough to be company and encouragement for one another, the freed people will not be so reluctant to go."In 1860, the 3,185 slaves in the District of Columbia were owned by just two percent of the District's residents. In April 1862, Lincoln arranged to have a bill introduced in Congress that would compensate District slave-holders an average of $300 for each slave. An additional $100,000 was appropriated to be expended under the direction of the President of the United States, to aid in the colonization and settlement of such free persons of African descent now residing in said District, including those to be liberated by this act, as may desire to emigrate to the Republic of Haiti or Liberia, or such other country beyond the limits of the United States as the President may determine.
When he signed the bill into law on April 16, Lincoln stated: "I am gratified that the two principles of compensation, and colonization, are both recognized, and practically applied in the act."Two months later, as part of the (second) Confiscation Act of July 1862, Congress appropriated an additional half-million dollars for the President's use in resettling blacks who came under Union military control. Rejecting criticism from prominent "radicals" such as Senator Charles Sumner, most Senators and Representatives expressed support for the bold project in a joint resolution declaring that the President is hereby authorized to make provision for the transportation, colonization and settlement in some tropical country beyond the limits of the United States, of such persons of African race, made free by the provisions of this act, as may be willing to emigrate ...

Serious obstacles remained, however. Secretary of the Interior Caleb B. Smith informed the President that Liberia was out of the question as a destination for resettling blacks because of the inhospitable climate, the unwillingness of blacks to travel so far, and the great expense involved in transporting people such a vast distance. Haiti was ruled out because of the low level of civilization there, because Catholic influence was so strong there, and because of fears that the Spanish might soon take control of the Caribbean country. Those blacks who had expressed a desire to emigrate, Secretary Smith went on to explain, preferred to remain in the western hemisphere. The only really acceptable site was Chiriqui, Smith concluded, because of its relative proximity to the United States, and because of the availability of coal there. Meanwhile, the United States minister in Brazil expressed the view that the country's abundance of land and shortage of labor made it a good site for resettling America's blacks.
In mid-May 1862, Lincoln received a paper from Reverend James Mitchell that laid out arguments for resettling the country's black population:





























