President Lincoln signed the Loan and Treasury Bill recently passed in Congress.  Besides authorizing borrowing to fight the war, it regularized the issue of United States government banknotes, up to the value of $150 million, in the denominations of five dollars and up.  These were to become the national banknote currency and legal tender for all debts, except customs duties, including interest payments on the national debt.  (By John Osborne) 

Columbus, Kentucky had been the northernmost Confederate position on the Mississippi River and was known as the "Gibralter of the West" for its extensive fortification and a massive steel chain stretched across the river to Belmont, Missouri.  Fearing that the Union advance on New Madrid, Missouri around thirty miles downstream would cut him off, Confederate General Leonidas Polk had ordered an evacuation on February 25, 1862 and over the next week had moved all his men and 140 cannon to the New Madrid area. (By John Osborne)   

Columbus, Kentucky was the northernmost Confederate position on the Mississippi River and was known as the "Gibralter of the West" for its extensive fortification and a massive steel chain stretched across the river to Belmont, Missouri.  Fearing that the Union advance on New Madrid, Missouri around thirty miles downstream would cut him off, Confederate General Leonidas Polk ordered an evacuation and over the next week moved all his men and 140 cannon to the New Madrid area.  Union forces took possession of Columbus on March 3, 1862. (By John Osborne)   

The day before, U.S. Naval gunboats on the Chowan River had been lured towards shore by ruse near Winton, in Hertford County, North Carolina and subjected to heavy fire. Returning the next day to find the town abandoned, men from the 9th New York Infantry burned it in reprisal.  This was the first such instance in the state and news of the destruction was not well received universally, even in New York.  (By John Osborne) 

Sibley's invasion of New Mexico from Texas met its first heavy resistance from Union forces at a ford on the Rio Grande near Valverde, north of the Union-held Fort Craig.  Troops from the fort tried to deny Sibley the river crossing and heavy fighting raged all day.  The Union prospered in the morning but in the late afternoon a series of Confederate charge broke the Union men commanded by Colonel Edward Canby.  Both sides suffered heavy losses. Canby retreated to Fort Craig and Sibley was able to move on to Santa Fé.  (By John Osborne)