Grant Did Grant say this?

It's not Grant writing that, and that is also not an account written by an objective observer. He was a confederate.

So no, it's not really apparent that Grant said that.
Agree. And even assuming that Gibson's hearsay account in December 1861 is accurate, so what. The statement was made at a time when it was consistent with the Administration's official position and after the Administration had to "walk back" premature steps by Butler and Fremont. Grant was hardly in a position to state a contrary view. Gibson also did not include the facially absurd assertion that Grant said he would have "offered [his] sword to the other side". Finally, Gibson added that he didn't actually believe the Federals' protestations of their intentions. Much ado about nothing.
 
"There are only two sides now, traitors and patriots," said Grant at the beginning of the war, adding that he wished to be one of the latter.
 

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