While the Emancipation Proclamation only freed slaves that were in Union territory, it served as a reminder to those who were still under Confederate rule that the North were fighting for them. The effects of the Emancipation Proclamation was immense, because not only did it serve as a reminder, but also that it showed that the Union would be able to win, which, with the lack of potential generals, the Union was still struggling with. However, Abraham Lincoln was able to find the generals needed (Ulysses S. Grant, William T. Sherman, etc.) to win.
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