In , shortly after the war, he was admitted to the bar association and by was elected to the Indiana State Senate. On April 25, he became Colonel of the 11th Indiana, and five months later on September 3, he became Brigadier General of Volunteers. He joined General Ulysses S. Grant's army in the West and led a division in the capture of Fort Donelson. After the capture of the fort, Wallace was promoted to Major General on March 21, , the youngest in the Union Army.
In April he participated in the battle of Shiloh. When Confederate forces attacked Grant's army, Wallace was stationed several miles away from the main Union contingent. Grant ordered Wallace to march to Shiloh and attack the Confederate left, but due to confusion with his orders, Wallace arrived too late to aid Grant the first day. President Lincoln appointed him commander of the Middle Department of Maryland and Delaware, headquartered in Baltimore.
In July , Wallace led the Union force at the battle of Monocacy. There, with men, he delayed a Confederate army of 14, bent on nothing less than the seizure of the Union capital, Washington, DC, only thirty miles away.
This gave the Union time to reinforce the poorly defended capital and thwart the Confederates. His defense earned him the gratitude of Lincoln, his Secretary of War and the new commander of all the Union armies, U. In early , Grant sent Lew on a mission to Texas.
Lew intended to stop the flow of goods across the Mexican border into the Confederacy. Lew also hoped obtain the surrender of the Confederate army there. If he succeeded, Confederate and Union soldiers could join to aid the legally-elected Mexican government of Benito Juarez. Juarez fought to eject the French army, which had installed Maximilian as Emperor of Mexico. Lew was unsuccessful in garnering a surrender, but he did make valuable contacts with the Mexican republicans for the U.
In May of , Lew served as second-in-command of the military tribunal that tried the Lincoln conspirators. He sketched the men on trial. Lew resigned his commission in November and returned to Crawfordsville. He spent part of and in Mexico, with U.
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