Does "the degenerate counsels from which they emanate" mean ...?

1) Does "the degenerate counsels from which they emanate" mean "the despicable proposal made by them"?
2) Does "their chief" mean "the American troops' commander"?
Context:

They have not, it is true, taken into their own hands the hatchet and the knife, devoted to indiscriminate massacre, but they have let loose the savages armed with these cruel instruments; have allured them into their service, and carried them to battle by their sides, eager to glut their savage thirst with the blood of the vanquished and to finish the work of torture and death on maimed and defenseless captives. And, what was never before seen, British commanders have extorted victory over the unconquerable valor of our troops by presenting to the sympathy of their chief captives awaiting massacre from their savage associates. And now we find them, in further contempt of the modes of honorable warfare, supplying the place of a conquering force by attempts to disorganize our political society, to dismember our confederated Republic. Happily, like others, these will recoil on the authors; but they mark the degenerate counsels from which they emanate, and if they did not belong to a sense of unexampled inconsistencies might excite the greater wonder as proceeding from a Government which founded the very war in which it has been so long engaged on a charge against the disorganizing and insurrectional policy of its adversary.

MOre:

http://www.bartleby.com/124/pres19.html