Palmer commanded the cavalry pursuit of Jefferson Davis following the surrender by General Joseph E. Johnston. Davis was followed through North Carolina, South Carolina, and Georgia and driven into the hands of General James H. Wilson. During the pursuit, Palmer's former command overtook and captured wagons carrying millions of dollars of specie, bonds, securities, notes, and other Confederate assets, near Covington, Georgia, that had been kept in the Bank of Macon (Georgia). Palmer was mustered out of the Union Army on June 21, 1865.