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March–April 1861
Upon taking office as secretary, Seward purged the State Department of Southern sympathizers. Lincoln allowed him considerable discretion in staffing the department, and he appointed his son, Frederick Seward, as Assistant Secretary. Some diplomatic posts were filled as Lincoln paid political debts—David Kellogg Cartter, who had cast the votes at Chicago that put Lincoln's nomination over the top, was made minister to Bolivia. Seward was successful at getting his friend and ally, Charles Francis Adams, made minister to Britain, a position held by Adams's father and grandfather.{{sfn|Taylor}pp=142–144}}

The seceded Southern states united to form the Confederate States of America, led as president by former senator Davis. The policy of Lincoln's government towards these states was uncertain in his first month in office, and Seward was in correspondence with many moderates from the South and the border states. Complicating matters was the question of federally-held enclaves in the South, such as Florida's Fort Pickens, and Fort Sumter in Charleston Harbor. Federal forces holding Sumter, commanded by Major Robert Anderson, were cut off from the North and short on supplies. A majority of Lincoln's cabinet favored abandoning Sumter, hoping that this would appease the South, and so stated in written opinions requested by Lincoln after a Cabinet meeting on March 15, 1861, Seward was in touch with the Confederate commissioners who had been sent to Washington in the hope of gaining recognition, and still believed he was a "premier", controlling a weak president. On March 27, the Cabinet met again and Lincoln presented evidence he had gathered through friends and agents, indicating that there was no likelihood of a Southern return even if Sumter was evacuated. This time the Cabinet favored relieving Sumter, though Seward and Interior Secretary Caleb Smith dissented. Seward was shocked two days later when he was told Lincoln had decided that Sumter must be reprovisioned.

As the weeks passed, and Sumter was not evacuated, Seward wrote increasingly evasively to the commissioners and to others in the South. At Lincoln's request, Seward worked on organizing an naval expedition to relieve Sumter, though the secretary opposed such actions personally. Word reached Jefferson Davis that the ships were en route, and he and his cabinet decided not to wait for it to arrive, and ordered South Carolina authorities to demand that Anderson surrender, and if he would not, to attack the fort. Firing on Fort Sumter began on April 12, 1861. Seward urged Lincoln to call for 100,000 volunteers; other Cabinet members suggested 50,000, and Lincoln split the difference. The border states of North Carolina, Tennessee and Kentucky refused to send troops. Virginia seceded and joined the Confederacy; North Carolina, Arkansas, and Tennessee soon followed suit. As Lincoln would recall in his second inaugural address almost four years later, "And the war came."

Relationship with Lincoln
Lincoln biographer David Donald suggests that Lincoln, early in his presidency, came to realize that Seward was drawn to authority figures—his father, his first law partner, Judge Miller, and to Weed. All three men were older than Seward, and Lincoln was some seven years younger, but the President's appearance and position caused him to be called "Old Abe". Seward was drawn to him. Donald also suggests that Seward was subject to rebellion against these figures (for example, in leaving college and going to Georgia).

Donald suggests that an example of this rebelliousness manifested himself when Seward on April 1, 1861, sent Lincoln a memorandum stating that a month into his presidency, there was no clear policy on foreign or domestic matters, and Lincoln was spending too much time dealing with minor patronage matters. The administrations' policies required energetic handling, either by Lincoln himself or by some member of the Cabinet—and hinted that Seward himself should be the person so entrusted.

Territorial expansion
He also sought to obtain Hawaii and Santo Domingo, but failed. Journalist and author Don Seitz pointed out that the United States later took Hawaii, and had run Santo Domingo, "he was wise and foreseeing where other men were stupid and blind".

Assessment and legacy
Don Seitz, in his volume on prominent Americans who were not successful in their quests to be president, suggested that Seward's most famous words were proved correct, "There was "a higher law than the Constitution", and the conflict was "irrepressible" until it ended in blood!"