Circa1865

The postwar Republican party in 1903 was not unfamiliar with exporting revolution for commercial and party purposes as it had supported revolts in Hawaii in 1887, which ended in the overthrow of Hawaiian sovereignty in 1898. The Columbian government would not move fast enough for Roosevelt the First, and the machinery of regime change was put into motion.

Bernhard Thuersam, www.Circa1865.com

Republicans and Panamanian Secession

“On November 3, 1903, a group of revolutionaries led by Manuel Amador staged a bloodless uprising in Panama City and succeeded in severing the province of Panama from the Republic of Columbia of which it had been an integral part. Under normal circumstances such political upheavals in Latin America would have caused little comment in the United States, but the Panama revolution was in no sense a normal affair.

An agreement had already been made with the New Panama Canal Company to purchase the rights of a defunct French corporation that earlier had attempted to construct a canal through the isthmian jungles; but all efforts to obtain a new grant of authority from the Columbian government proved to be unsuccessful, so unsuccessful, in fact, that there seemed to be little immediate hope that the United States would able to accomplish its self-appointed task of joining the Atlantic and Pacific Oceans.

Guided by motives of self-interest, the independent Republic of Panama would offer no impediment to the work of American engineers . . . In sum, the Panama uprising was, to all outward appearances, a most satisfactory revolution.

Viewed in the light of other developments, however, the whole Panama affair carried suspicious markings of American imperialism.

In the first place, the Roosevelt administration, in its anxiety to obtain Columbian approval of a suitable canal treaty, had exerted the most obvious sort of pressure on that government. During the spring and summer of 1903 Roosevelt had personally referred to Columbian officials as “inefficient bandits,” “contemptible little creatures,” and “homicidal corruptionists.”

He even threatened that country with action that “every friend of Columbia will regret” in the event some favorable solution was not soon reached.

In the second place, key figures in the Roosevelt administration had been exceedingly intimate with some of the leading figures in the Panamanian revolution. William Nelson Cromwell, an attorney for the New Panama Canal Company, for example, had contributed $60,000 to the Republican national committee in 1900 and through it gained an entry to the highest circles of that party.

Finally, the course of the United States government prior to and during the . . . revolution was open to suspicion of the gravest sort. An official of the State Department had sent an unfortunate inquiry to the American consul at Panama City asking about the uprising several hours before it occurred. Did this mean that the United States government had known in advance about the outbreak and had assisted the revolutionary party in planning it?

By like token, how did it happen that the USS Nashville arrived in Colon on the evening of November 2 and, on the day following the revolution, landed United States Marines there to prevent Columbian troops from seizing the Panama Railroad?

Above all, why did President Roosevelt recognize the new republic on November 6, receive [the new] minister from Panama on November 13, and authorize the signing of a canal treaty on November 17? Had Roosevelt personally engineered the revolt?

Certainly there was plenty of circumstantial evidence pointing towards the complicity of the American government; and although the Panama incident was still shrouded in secrecy, if the Democrats could uncover a few of the real facts underlying it both President Roosevelt and the Republican party would, in all likelihood, be faced with a scandal so infamous that political disaster must inevitably follow.”

(Arthur Pue Gorman, John R. Lambert, Louisiana State University Press, 1953, excerpts, pp. 297-300)

With Benjamin Harrison in the White House in 1889, the Republican party moved quickly to restore its political hegemony and construct numerous barriers to future Democratic victories. In a two-pronged effort the McKinley Bill would establish high tariff rates to protect northeastern manufacturers from foreign competition and encourage campaign contributions; the Force Bill ostensibly prevented corruption in Federal elections – but in reality gave Federal district judges the power to manipulate congressional elections in the South by shearing as much authority as possible from local election officials.

Bernhard Thuersam, www.Circa1865.com

The Force Bill Fight in Congress

“When Congress assembled in December, 1889, the Republicans were in complete control of both branches for the first time in sixteen years. With a great deal of satisfaction, therefore, their leaders revived the partisan measures that a Democratic majority in one house had previously thwarted.

In the opening days of the session they prepared several items of legislation designed to strengthen and lengthen Republican power. Their high tariff supporters were to be rewarded with the McKinley bill with its inflated schedules; the [treasury] surplus was to be obliterated by a veritable orgy of Federal spending; and any subsequent restoration of the Democratic party to power was to be hampered by a set of Federal election laws that would weaken the Solid South with Negro ballots and, if necessary, Northern bayonets.

If the Democrats were to survive the onslaught that the Republicans planned for them, they would require unflagging minority leadership in Congress. Shrewd parliamentary leadership would be needed there to employ effectively the minority’s somewhat limited resources.

The elections bill . . . was designed to appeal to lovers of human, rather than property rights. Its provisions were to be simple, just, and, to all outward appearance, eminently nonpartisan. Those who opposed its passage would place themselves in the position of defending Negro disenfranchisement, unconstitutional usurpation by Southern whites, and downright criminality. To attack the elections bill would be equivalent to a shameless confession of guilt.

Both measures were designed to cripple the Democratic party. The Tariff bill was not simply the negation of avowed Democratic principle; it was both the repayment of Republican campaign debts and the promise of future contributions.

“Fat-frying” had made Republican victories possible in 1888; high tariff schedules would now satisfy old customers and establish a new group of beneficiaries whose financial support might ensure Democratic defeat indefinitely.

The ulterior motives behind the elections bill were equally clear. Pious declarations that it was not a political weapon might assist its passage, but once it became law, the President would be empowered to enforce its provisions with the full support of the Army and Navy.

By this time it was clear to everyone that the Republicans were not motivated by humanitarian impulses in their efforts to protect the Negro in his constitutional rights; they were attempting to restore the political control over the Southern election machinery which they had exercised during the Reconstruction era”

(Arthur Pue Gorman, John R. Lambert, Louisiana State University Press, 1953, excerpts, pp. 145-148; 157)

South Carolina’s first reconstruction governor was former Northern General Robert K. Scott, a Pennsylvania native who accomplished a tripling of the State debt through corruption and fraudulent bonds; his legislature voted itself a full-time saloon and restaurant at taxpayer expense. Scott’s successor, former Northern army officer Daniel H. Chamberlain was determined “to make his elected position pay,” though feeble attempts were made toward reform and Republican patronage which enraged black Republicans expecting favors for votes delivered.

Bernhard Thuersam, www.Circa1865.com

Representing the Powers at Washington in South Carolina

“There is ample evidence of both black domination and the exercise of controls over black leadership by the white [Republican] leadership. South Carolina was unique among the reconstructed States in that blacks constituted about 60 percent of the population. This population advantage was converted into a substantial numerical advantage in the legislature, where Negroes held a two-to-one majority in the lower house and a clear majority on joint ballot of House and Senate throughout the nine-year period of Reconstruction.

During this same period [black South Carolinians] held the office of secretary of state (from 1868 to 1877), lieutenant-governor and adjutant-general (after 1870), secretary of treasury, Speaker of the House, and president pro tem of the Senate (after 1872).

On the other hand, Negroes never held the governorship, the office of US senator, any of the eight circuit judgeships, the offices of comptroller general, attorney general, superintendent of education, or more than one of the three positions on the State supreme court.

Furthermore, there were recorded instances of black officeholders serving as mere pawns of shrewder white [Republican] colleagues. The northern-born county treasurer of Colleton County boasted to Governor Scott that he “could control every colored man’s vote in St. Paul’s Parish and St. Bartholomew Parish.” The Negro treasurer of Orangeburg County found himself in jail charged with malfeasance in office, while the white mentor who had gotten him the appointment and directed his peculations went free.

On another occasion it was alleged that the white [Republican] political boss of Colleton County engineered the removal from the county auditor’s position of a well-educated Negro political enemy, replacing him with another Negro who was illiterate. The latter was expected to be auditor in name only, while another white crony performed the duties of office.

[The] reactions of historians to [traditional images of racial relationships often betray] more emotion than analysis [and] . . . [WEB] DuBois, for example, accepted the idea of the essential powerlessness of blacks in South Carolina’s Reconstruction government in order to minimize the culpability of blacks for the corruption of that government, even though [this actually] contradicts his thesis of black labor’s control of the government.

However, the key advantage of the white Republicans probably lay in their presumed or real contacts in the North which enabled them to promise and sometimes deliver funds, patronage or protection. White Northerners often passed themselves off as representing the “powers at Washington” in order to secure the political obedience of the Negroes, according to [carpetbagger] ex-Governor [Daniel H.] Chamberlain.

Just after the passage of the Fourteenth Amendment, a committee of South Carolina’s Negro political leaders made a secret trip to Washington to confer with Thaddeus Stevens and Charles Sumner about the formation of a political organization.

But many white Republicans continued to advocate efforts to attract native whites into the Republican party and the appointment of northern whites to sensitive positions. This policy reflected their lack of confidence in black officeholders . . . “There is not enough virtue and intelligence among the Blacks to conduct the government in such a way as will promote peace and prosperity” [wrote one Republican].

In other instances, white Republican officeholders urged the governor to replace with whites those black colleagues whom they considered “un-businesslike” or incompetent.”

(Black Over White, Negro Political Leadership in South Carolina during Reconstruction, Thomas Holt, University of Illinois Press, 1977, excerpts, pp. 96-104)

The late M.E. Bradford understood that the centrality of freedom was the core of Southerners’ insistence on their right to govern their private and local affairs in their own way, and was the same for citizens of all other States. He held that “the only equality Americans can universally approve is accidental, a corollary of liberty or simple equality before the law with limited scope.” Bradford made his readers painfully aware of Lenin’s belief that the only way to make men equal is to treat them unequally.

Bernhard Thuersam, www.Circa1865.com

The Seductive Promises of Demagogues

“The wrath [Bradford] directed against Lincoln, like the wrath he directed against Julia Ward Howe, the authors of the Reconstruction amendments, Lyndon Baines Johnson, and all those who had imposed the teleological will of an instrumental government and judiciary upon an unsuspecting nation, had little to do with personal animosity.

It stemmed from his indignation against people he viewed as so intellectually blind as to be incapable of understanding the enormity they had wrought or so morally blind as not to care, provided only that they accomplished their immediate ends. Such attitudes, for Bradford, embodied the reverse – indeed the repudiation – of the obligations of stewardship and amounted to the despoiling of the children as well as the desecration of the fathers.

Bradford refused to apologize for the severity of his message – that the Northern victory had extracted a terrible cost from the country and its culture. Rejecting the cult of equality as the opiate of the intellectuals, Bradford rejected the fashionable identification of the Declaration of Independence with the Constitution, referring to “the Great Divide of the War Between the States.”

He explained: “it has been more and more the habit of our historians, jurists, and political scientists to read the Continental Enlightenment, and the Age of Revolution that was its political consequence, back into the beginnings of our national beginnings by way of an anachronistic gloss upon the Declaration of Independence.”

He constantly reminds his readers that the Constitution, not the Declaration, embodies the country’s law, which it exists to articulate and protect. Thus, he argues in an uncharacteristically optimistic vein, the “Constitution makes it difficult or even impossible for us to alter our political identity on whim or when momentarily carried away by the adjuration of demagogues.”

By the time Bradford died [in 1993], he had reason to know that the American political identity he cherished was under formidable assault, primarily at the hands of the Supreme Court justices – those supposed custodians and interpreters of the Constitution itself.

Experience and history taught Bradford, as he believed they had taught the Framers, that in politics one must conjoin the “caution of David Hume and the pessimism of Saint Paul,” especially with respect to the seductive promises of demagogues. In the time of the Framers, as in our own, he insisted, caution and pessimism should lead to a deep mistrust of the myths of equality with which demagogues love to seduce the more gullible of the citizenry, and he approvingly quoted Rufus King of Massachusetts, “the unnatural Genius of Equality [is] the arch Enemy of the moral world.”

(M.E. Bradford’s Historical Vision, EF & ED Genovese; A Defender of Southern Conservatism, M.E. Bradford and His Achievements, Clyde N. Wilson, editor, University of Missouri Press, 1999, pp. 79-82)

Prior to 1861, the New York Associated Press was playing an important role in transforming American journalism by centralizing a network of like-minded newspapers to distribute news to the country. After commencing hostilities, the Lincoln administration began censoring news stories regarding the war almost immediately and what followed was a constant suppression of stories regarding war financing in Congress, the imminent bankruptcy of the government, Northern casualties figures, and war profiteering by war materiel contractors.

Bernhard Thuersam, www.Circa1865.com

Censorship and Favorable Publicity

“At the outset of the Civil War – and for the first time in American history – the federal government created an apparatus to censor news stories. For the first ten months of the war, responsibility for the Washington censorship shifted among cabinet officials. Given this arrangement, the censorship imposed on correspondents during the crucial early phase of the conflict was as much political as military.

In December 1861, the House of Representatives authorized the Judiciary Committee “to inquire if a telegraphic censorship of the press has been established in this city; if so, by whose authority, and by whom is it now controlled.” The committee held hearings during January and February before submitting its fourteen-page report to the House in February 1862.

On April 19 . . . reporters gathered details from the battered [6^th Massachusetts Regiment returning from Baltimore] and hurried to the Washington telegraph office to file their stories for Northern newspapers. When they arrived, however, they found the office guarded by a militia squad . . . no one quite accepted responsibility for the decision to ban the transmission of news, though [William] Seward mentioned that the cabinet had been discussing the need for some type of telegraphic censorship.

[News organization owners were told that] Messages about military operations were to be detained, as was anything “injurious to the interest of the Government.” The circular closed with the admonition, “Of course the strictest secrecy must be observed in respect to these instructions.” Near the end of April, the War Department assumed control of the telegraph and the censorship program.

Telegraphic reports about the outcome of [First Manassas] on July 21 damaged the credibility of both the government and the press and prompted changes in censorship. Early accounts of the battle telegraphed to Northern newspapers suggested an imminent Union victory . . . [and] left the public unprepared for the news that followed: the battle ended in an ignominious rout of the Union army.

Only days after Gen. George B. McClellan assumed command of the Army of the Potomac, he met with reporters and proposed a code that governed news sent by telegraph . . . “that may furnish aid and comfort to the enemy.” Eleven correspondents representing leading newspapers in New York, Philadelphia, Boston, Cincinnati, and Washington signed, as did General McClellan.

The ultimate arbiter of what could pass over the wires from Washington, Secretary of War Simon Cameron, was well-positioned to cultivate favorable publicity. He directed the censor to let the “despatches of Mr. [Samuel] Wilkeson, of the New York Tribune, go over the wires as written . . . as Wilkeson enjoyed the latitude to offer comments, even editorialize, in his reports from Washington. “The privilege was to be used wholly in [reference] to the policy of sustaining the govt – sustaining the War Dept.,” Wilkeson testified.

Wilkeson’s reports to the Tribune regularly defended Cameron and the War Department from the many charges of scandal and mismanagement in awarding military contracts.”

(The Telegraph, Censorship and Politics; Richard B. Kielbowicz, Civil War History, Vol. XL, 1994, Kent State University Press, excerpts, pp. 96-101)

In the following mid-1864 letter to Charles Sumner of Massachusetts, General E.W. Gantt of Arkansas questions the revolutionary logic of the radical Republicans in Congress who claimed sovereign States had become mere territories after unsuccessfully seeking political independence — he expected the North to live up to its alleged aim of preserving the Union as it was. Gantt was a Confederate brigadier who decided by 1863 that Arkansas could not achieve independence and should return to the Union — he became the only Southern general to commit treason.  Historian Bruce S. Allardice suggests that Gantt’s behavior was the result of insobriety, cowardice, opportunism or immorality.

Bernhard Thuersam, www.Circa1865.com

Readmission a Legal Impossibility

Secession and Readmission; Letter to Hon. Charles Sumner from Gen. E. W. Gantt, of Arkansas.

FIFTH-AVENUE HOTEL, June 1, 1864.

Hon. Chas. Sumner:

SIR: But for your resolution and action in reference to Arkansas politics, I feel sure that I should not have appeared before the public again. The subject which calls forth this letter being entirely of a public character, induces me to address you through the columns of the New-York TIMES.

Upon the application of the State of Arkansas to resume her relations — temporarily disturbed — with the National Government, by sending her constitutionally-chosen representatives for that purpose, you have seen fit to introduce the following resolution, to wit:

Resolved, That a State pretending to secede from the Union, and battling against the National Government to maintain their position, must be regarded as a rebel State, subject to military occupation, and without representation on this floor, until it has been readmitted by a vote of both Houses of Congress; and the Senate will decline to entertain any application from any such rebel State until after such a vote of both Houses.

From this I infer that you intend to oppose our peace offering, and to break up, if possible, our loyal State organization, effected as it has been at immense personal hazard, and wonderful exertions and determination upon the part of our loyal people.

When you say that a “State pretending to secede” must be “readmitted” by a vote of both Houses of Congress, what are we to understand you to mean? Do you mean that the State really did secede? That is, that it got out of the “compact?” If that be so does it not occur to you that it went out as a State and became a separate sovereignty? If this be so, “readmission,” it strikes me, is a legal impossibility. The Sovereign Government of Arkansas should apply for “annexation” and not “readmission.” But do you mean that it only pretended it was out, while in point of fact it was in the Union? Then how could you “readmit” that which never was out? It would place the Government in the awkward attitude, it seems to me, of fighting against the people of a State because they “pretended to secede,” and yet had not, and at the same time declaring that they did go out and must be “readmitted.”

But do you mean that the secession ordinances passed by certain legislatures and conventions reduced the States in which the same were passed to Territories? If so, how? If the ordinances referred to put the States out, why they went out as States. It won’t do to say they had just enough sovereignty to scramble out of the Government, and that then they rumbled into Territories.

The sovereignty reserved that could take them out, could hold them up as States. As such, they could form compacts with other Governments, or new combinations of their own. They could not possibly work their way out of the Government, and being out, fall back to the Government as a part of its territory — no more than they could merge into the Russian possessions. A doctrine so dangerous might destroy the Government in a month. Secession ordinances passed by twenty States, reducing them to Territories, would stop the wheels of Government.

But you may intend this as a punishment because our State “pretended to secede.” If so, we are already punished enough. But why discriminate? Missouri pretended to secede, and so did Kentucky. There was no question raised over them. And Mr. BOULINEY, of Louisiana, remained in the Congress of the United States more than one year after Louisiana pretended to secede.

But, then, your opposition may arise from want of regularity in the reorganization. That it was without precedent I admit. That the people, groaning under anarchy, oppression and despair, wrought out a government from the wreck around them, with no beaten path to follow, is true.”

(New York Times, June 3, 1864)

Referring to the proposed Thirteenth Amendment in early 1861, offered by the Lincoln’s party and approved by him, Southern Commissioners Yancey, Rost and Mann wrote to British Lord John Russell on August 14, 1861: “The very [Republican] Party in power has proposed to guarantee slavery in the States, if the South would remain in the Union.” This underscored that their cause was not a defense of slavery, but the high price of protecting Northern manufacturers. Even with Lincoln’s support of slavery, the South chose political independence from the North.

Bernhard Thuersam, www.Circa1865.com

Senator Wigfall on the Cause of Discontent

“Said Senator Louis Wigfall, of Texas, March 4th 1861 in the United States Senate, only a few hours before Mr. Lincoln’s inauguration:

“It is early in the morning and I hope I shall not say anything that may be construed as offensive. I rise merely that we may have an understanding of this question.  It is not slavery in the Territories, it is not expansion, which is the difficulty.

If the resolution which the Senator from Wisconsin introduced here denying the right of Secession, had been adopted by two-thirds of each branch of this department of the Government, and had been ratified by three-fourths of the States, I have no hesitation in saying that, so far as the State in which I live and to which I owe my allegiance is concerned, if she had no other cause for a disruption of the Union taking place, she would have undoubtedly have gone out.

The moment you deny the right of free government to the free white men of the South, they will leave the Government. They believe in the Declaration of Independence.

In the “address of the People of South Carolina, assembled in convention . . . to justify the passage of the South Carolina Secession Ordinance of 1860, it is declared that (excerpted): “The one great evil from which all other evils have flowed is the overthrow of the Constitution of the United States. The Government of the United States is no longer the Government of Confederated Republics, but of a consolidated Democracy. It is no longer a free Government, but a Despotism. It is, in fact, such a Government as Great Britain attempted to set over our Fathers; and which was resisted and defeated by a seven years struggle for Independence. The Revolution of 1776 turned upon one great principle, self-government — and self-taxation, the criterion of self-government.”

The Southern States now stand exactly in the same position towards the Northern States that the Colonies did towards Great Britain. The Northern States, having the majority in Congress, claim the same power of omnipotence in legislation as the British Parliament.

“The General Welfare” is the only limit of legislation of either; and the majority in Congress, and in the British Parliament, are the sole judges of the expediency of the legislation this “General Welfare” requires. Thus the Government of the United States has become a consolidated Government; and the people of the Southern States are compelled to meet the very despotism their fathers threw off in the Revolution of 1776.

The consolidation of the Government of Great Britain over the Colonies, was attempted to be carried out by the taxes. The British Parliament undertook to tax the Colonies to promote British interests . . . Our fathers resisted this pretension. And so the Southern States, toward the Northern States, in the vital matter of taxation.

They are in a minority in Congress. Their representation in Congress is useless to protect them against unjust taxation; and they are taxed by the people of the North for their benefit, exactly as the people of Great Britain taxed our ancestors in the British Parliament for their benefit. For the last forty years, the taxes laid by the Congress . . . have been laid with a view of subserving the interests of the North.

The people of the South have been taxed by duties on imports, not for revenue, but for an object inconsistent with revenue — to promote, by prohibitions, Northern interest in the productions of their mines and manufactures.

The people of the Southern States are not only taxed for the benefit of the Northern States, but after the taxes are collected, three-fourths of them are expended at the North. This cause . . . has made the cities of the South provincial. Their growth is paralyzed; they are mere suburbs of Northern cities.

The agricultural productions of the South are the basis of the foreign commerce of the United States; yet Southern cities do not carry it on. Our foreign trade is almost annihilated . . . by gradual and steady encroachments on the part of the people of the North, and acquiescence on the part of the South, the limitations in the Constitution have been swept away; and the Government of the United States has become consolidated, with a claim of limitless powers in its operations.

A majority in Congress, according to their interested and perverted views, is omnipotent. Numbers with them, is the great element of free Government. A majority is infallible and omnipotent. “The divine right to rule in Kings,” is only transferred to the majority.

The very object of all Constitutions, in free popular Government, is to restrain the majority. Constitutions, therefore, according to their theory, must be the most unrighteous inventions, restricting liberty. None ought to exist; but the body politic ought simply to have a political organization, to bring out and enforce the will of the majority. This theory is a remorseless despotism.

In resisting it, as applicable to ourselves, we are vindicating the great cause of free government, more important, perhaps to the world, than the existence of all the United States.”

(The Great Conspiracy, Its Origin and History, John A. Logan, A.R. Hart & Company, 1886, excerpts, pp. 226-227; 231-234)

The Liberal Obsession Since 1865

“America [today] is not simply divided; she is fractured in a craze of spreading lines and hairlines that trace the boundaries of ideological, cultural religious, ethnic, and racial rivalries and resentments. The country is reaping the burden of a history shaped since 1865 by liberal thought and liberal politics.

First came the “reunion” of North and South – in fact, no reunion at all but the forcible union of institutional components of two broadly dissimilar geographic, social and political regions that from 1789 until 1865 were considered by the Founding Fathers and their descendants as sovereign States linked in voluntary and equal compact with one another.

National union at the cost of 618,222 men was succeeded by decades of the unrestrained free enterprise (excepting the tariff) favored by economic liberalism and a century and a half of increasingly liberal jurisprudence, liberalizing education, liberal secular metaphysics (described by George Santayana in Character & Opinion in the United States, published in 1920), liberalizing psychology, sociology, and economics, and their practical application: social engineering, the mass immigration of increasingly unlike, incompatible, and unassimilable peoples, multiculturalism, and the ensuing social confusion, resentment, chaos and public violence.

What used to be called the art of politics has long since become the abuse of it; while the most skillful government, unable to override or cancel history, is incapable of “solving,” or even adequately coping with, troubles of the fundamentally nonpolitical sort – what the country is experiencing today. And not the United States alone, but all the Western democracies.

On both sides of the Atlantic . . . governments are paralyzed by their inability to devise solutions to their respective crises compatible with the scruples of the liberal creed and the liberal agenda that have given form and meaning to their national projects for two centuries.

Liberalism is no longer capable of controlling liberally the liberal society for which it is responsible, and so far it appears that liberals would prefer to see their liberal world destroyed by barbarians, foreign and domestic, than to rescue it by illiberal means.”

(Liberalism in the Headlights, In Our Time; Chilton Williamson, Jr., Chronicles, September 2016, pp. 10-11)

Elihu Root was an attorney, Carnegie institution functionary, served as Secretary of War under McKinley and Roosevelt the First, as well as Secretary of State under the latter. Born in New York in 1845, he witnessed the American South become an economic colony of New England, became a member of the notorious Union League Club and proponent of the income tax and American entry into WWI. Root was an opponent of the Federal Reserve Act. Signed into law by Woodrow Wilson with four gold pens on 23 December 1913, he remarked that the controversial Federal Reserve “measure had suffered many narrow escapes” before reaching his desk.

Bernhard Thuersam, www.Ccirca1865.com

Soundest Fiat Note Ever Issued

“On the floor of the Senate the [Federal Reserve] bill encountered heavy opposition. Senator Elihu Root, of New York, led the attack. His remarks were bitter and persistent. Such was Root’s standing that his assaults attracted much attention. The vehement antagonism of Senator Root was based on the charge that inflation and “fiat” money were at the center of the proposed system.

“The American people,” he argued, “closed the case for and against inflation . . . when they sustained the vote of the inflation bill by President Grant in 1874. Coming into power, the Democratic Party undertakes to reserve the oft-repeated judgment of the people of the United States upon this question. We are setting our steps now in the pathway which through the protection of a paternal government brought the mighty power of Rome to its fall. And we are doing it here without a mandate from the people of the United States.”

Defenders of the bill admitted that it was true that the Federal Reserve note was not, strictly speaking, a “Government” note, but contended that it was quite obvious that it was not “fiat” money. On the contrary, it was a sound bank note, secured by a forty percent gold reserve, a lien on the issuing bank and its stock, and by the Federal Government itself. There was little or no need for the Government obligation, it was held, but for the sake of safety and William Jennings Bryan, it was there.

The Senate paid little attention to the admonition of Senator Root. In fact, it actually enlarged the inflationary features of the bill. [They] deplored the fact that a statesman of Senator Root’s international reputation should have seized upon a politician’s catch phrase and denounced as “fiat” money the soundest note ever issued.”

(Carter Glass, Unreconstructed Rebel, James E. Palmer, Jr., Institute of American Biography, 1938, pp. 100-102)

There were two clear-cut factions within the Republican Party in North Carolina in the early 1900s: one which supported industrial development, and the more dominant one whose primary interest was in the spoils of office with one political aim – the holding of a Federal job. As Secretary of War William H. Taft relates below, the entire Federal service in North Carolina was controlled by “a distant appointing power.” The author writes of “Revenue officials, often openly and unblushingly corrupt, almost alone had the ear of the Federal administration and dominated Federal politics in the State. The people could not forget that the Federal government had forced Negro rule on them at the point of the bayonet, nor that every Democratic victory for years had been accompanied by a threat of Federal interference in State elections.”

Bernhard Thuersam, www.Circa1865.com

Reconstruction’s Long Life in North Carolina

“The chief interest in State politics in 1906 centers in the fight within the Republican party for control of the organization. So bitter did the fight become that President [Theodore] Roosevelt felt called upon to take a hand. He sent his secretary of war, William H. Taft, to address a warning to the State Republican convention which met in Greensboro, July 9-10, and it was in this speech that Secretary Taft said:

“I do not wish to seem ungracious, but I must be candid. In my judgement the Republican Party in North Carolina would be much stronger as a voting party, if all the Federal officers were filled by Democrats. Of course I cannot deny that a wish to fill public office is an honorable aspiration, whether by appointment of by election, but when all hope of choice by the people is abandoned, and everything is given over to influencing a distant appointing power to choose particular men to perform official functions in a community hostile to those men, the result is not good for the men or the community . . . As long, however, as the Republican Party in the Southern States shall represent little save a factional chase for Federal offices in which business men of substance in the community have no desire to enter and in the result of which they have no interest, we may expect the present political conditions in the South to continue.” [Raleigh News & Observer, July 10, 1906]

The warning of Candidate Taft fell upon deaf ears . . . [and] Thus the Republican party in North Carolina specifically acknowledged itself to be an organization merely for the control of Federal patronage.”

(Republican Office Holders Refuse to Abdicate; North Carolina, Rebuilding an Ancient Commonwealth, 1584-1925, R.D.W. Conner, Volume II, American Historical Society, 1929, pg. 527)