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Applauding the Death of Our Young Men

The Battle of the Somme was fought from July, 1916 to November 1916. This was the murderous cauldron young American men were sent to their deaths by Woodrow Wilson, the man who campaigned on a promise not to allow Americans to die in a European war. Had Wilson not intervened, Germany, France and England would have fallen exhausted into an armistice and a negotiated treaty among themselves; the German Kaiser would have remained and precluded the rise to power of a corporal named Hitler.

Bernhard Thuersam, www.Circa1865.com

 

Applauding the Death of Our Young Men

“At 7:28 A.M. on July 1 [1916] . . . The French and the British infantry climbed up from their trenches and jumped off into the exploding unknown. Like many British commanders a sedulous diarist, Sir Douglas Haig just thirty-two minutes later was making this entry:

“Reports . . . [are] most satisfactory. Our troops had everywhere crossed the enemy’s front trenches.”

All along the line his soldiers were falling in windrows to zeroed-in enemy machine gun and artillery fire. It was a catastrophe. By day’s end more than 60,000 soldiers of the British Empire were corpses littering the field, dying men trapped in the beaten zone, burdens for the stretcher-bearers, or walking wounded.

But not one pivotal plot of ground had been won. Here and there, sections of the German forward defense zone had been shallowly penetrated, and that was all.

Haig should have called off the Somme that night and cut his losses. But having failed, he was too bulldoggish to quit. In consequence, this hideous turmoil must be recorded as the most soulless battle in British annals. The Somme deteriorated into a bloody purge rivaling Verdun. It was a battle not so much of attrition as of mutual destruction, and it continued until November 18.

[Marshal Joseph] Joffre wanted it that way. He kept prodding Haig, insisting that the offensive be continued. At the same time, noting by the numbers (infantry were but digits to him) that his own army was fading away from the effects of Verdun and the Somme. Joffre was pressuring the War Ministry to call up the class of 1917 for training, though 1916 campaigning was hardly begun. If at this time his strategic reasoning had any end in view, it could only be that the side that could scrape up the last 100,000 men would win.

The [United States] of more than seventy million had fewer than 200,000 men in its army. Its armament from top to bottom was obsolete; the cannon and automatic weapons were hopelessly antiquated, cumbersome and scarce. None would do for Europe.

[In April 1917 and after American ships were sunk supplying England with war materiel, the] President said: “There is one choice we cannot make, we are incapable of making; we will not choose the path of submission.”

The President continued to a more meaningful expression of purpose: “We must make the world safe for democracy. Its peace must be founded upon the trusted foundations of political liberty.” For the sake of [the] nation, he asked the Congress for a joint resolution declaring war against Germany.

On leaving the rostrum, Wilson got the greatest ovation of his life. Later, at the White House, he said to his secretary, Joseph Tumulty: “Think of what it was they were applauding. My message of today was a message of death for our young men. How strange it seems to applaud that.”

(World War One, S.L.A. Marshall, Houghton-Mifflin, 1964, pp. 258-260; 280-281)

Northern Race Riots, Conscription and Substitutes

In mid-1863, Tammany Hall’s Boss Tweed found a way to settle the hated draft issue, give Lincoln his cannon fodder, and buy immigrant votes. Tweed brokered a deal with New York City politicians to find substitute recruits for drafted city residents, use the city treasury to pay whatever signing bonus the market would require, and tap a special $2 million “substitute” fund financed by bonds to be sold on Wall Street. If a New York City resident got caught in Lincoln’s draft, he could either use the fund to buy his way out, or join the army and keep the money. With this deal, Lincoln used Tammany Hall to run his draft in New York.

Author Kenneth Ackerman wrote in his biography of Boss Tweed: “His county recruitment drive for the army would attract scandal: abusive bounty brokers, unqualified soldiers — either prisoners from local jails or immigrants literally straight from New York harbor — and middlemen stealing fortunes in graft. But it hardly raised an eyebrow compared to the epidemic of war profiteering that had infected the country.”

Bernhard Thuersam, www.Circa1865.com

 

Northern Race Riots, Conscription and Substitutes 

“For four days terror reigned [in New York City], marked by a series of grisly lynchings [of black residents]. A mob even swarmed onto a British ship in the harbor, and despite the Captain’s protests, cruelly beat up the foreign Negroes among the crew. The police were barely able to save the Tribune Building from total destruction. Men searched for the Tribune’s editor, singing, “We’ll hang Horace Greeley from a sour apple tree.”

A Negro orphanage on Fifth Avenue was burned to the ground. Looters had a field day, among them screeching women who opposed [military] conscription.

Troops were rushed from Gettysburg [immediately after the battle]; cadets from West Point came to aid the police; the entire naval force in the region was called upon to quell the disturbance. Finally, in desperation, the military raked the streets with cannon fire. But what really stopped the rioting was a posted notice: “the draft has been suspended in New York City and Brooklyn.”

The newspapers carried the word in huge print. Order was finally restored. According to the Tribune of July 25, some 350 people had been killed; but other estimates went much higher. Casualties, including the injured, amounted to 1,000 and private property damage was estimated at $1,500,000.

Republican newspapers claimed the outbreak had been sparked by Confederate agents. But Democratic Party feeling and a sincere desire for peace were mingled with race prejudice and resentment against what the anti-Lincoln papers called the “incompetence” of the Administration. Men resented fighting against their convictions and were indignant at “governmental “frauds and profiteering.”

Apparently, from the magnitude of the outbreak, the London Times had not been far wrong in predicting that if the South won in Pennsylvania, Jefferson Davis and General Robert E. Lee would receive a rousing welcome along Broadway.

Soon after the tumult subsided, the Democratic City Council of New York voted that the exemption [from military service] money of four hundred dollars for impecunious draftees would be paid from the city treasury. To meet Governor Seymour’s charge that the conscription as practiced was “unequal, fraudulent and a disgrace,” President Lincoln reduced the New York quotas [for troops].

When the draft was resumed a month later, he took the precaution of sending 10,000 infantrymen and three artillery batteries from the Army of the Potomac to see that the business went off quietly.

During New York’s bloody pandemonium, [British Colonel Arthur] Freemantle had been surprised to hear everyone talking of the “total demoralization of the Rebels.” To him it sounded absurd, since only a few days previously he had left Lee’s army “as full of fight as ever,” much stronger and more efficient from every military point of view than when it had crossed the Potomac to invade Maryland the previous September.

In the Colonel’s opinion, Lee’s army had “not lost any of its prestige at the battle of Gettysburg, in which it had most gallantly stormed strong entrenchments defended by the whole Army of the Potomac.”   Freemantle took ship for England and completed his book of observations at sea. “The mass of respectable Northerners,” he wrote, “though they may be willing to pay, do not very naturally feel themselves called upon to give their blood in a war of aggression, ambition and conquest . . . The more I think of all I have seen in the Confederate States of the devotion of the whole population, the more I feel inclined to say with General Polk — “How can you subjugate such a people as this?”

[And] even supposing that their extermination were a feasible plan, as some Northerners have suggested, I never can believe that in the nineteenth century the civilized world will be condemned to witness the destruction of such a gallant race.”

(Jefferson Davis, Confederate President, Hudson Strode, Harcourt, Brace & Company, 1959, pp. 458-460)

 

 

The US Country-Splitting Business

The Truman administration is considered responsible for the unnecessary postwar intervention in Korea, and the subsequent Korean conflict which was greatly instigated by the Rhee puppet regime. As the internal Korean civil war began in the late 1940s, Truman only called in the United Nations “to add the weight of what was considered to be “world opinion” in support of America’s policy.” The initial American commander, General John R. Hodge, presciently commented that it would be better to “leave Korea to its own devices and an inevitable internal upheaval for its own self-purification.”

Bernhard Thuersam, www.Circa1865.com

 

The US Country-Splitting Business

“Senator Symington. “We go into this country splitting business . . . First we split Germany. Then we split China. We stay with billions and billions of dollars and hundreds of thousands of people. Then we split Korea, and stay there with billions of dollars and tens of thousands of military, all at heavy cost to the American taxpayer. Then we split Vietnam . . . Now we split Laos . . . Do you know of any other country we plan to split soon?”

Mr. Porter [US ambassador to South Korea]: “No sir.”

Senator Symington: “This has been quite an interesting policy hasn’t it, over the years? . . . Our allies don’t do [this], not do our possible enemies. We do it all over the world . . .”

(William Porter Testimony, US Security Agreements and Committees Abroad, Republic of Korea, Hearings before the Subcommittee on US Security Commitments Abroad of the Committee on Foreign Relations, US Senate, Ninety-first Congress, Second Session, 1970, pp. 1579-82. Without Parallel, The American-Korean Relationship Since 1945, Frank Baldwin, editor, Pantheon Books, 197, pg. 109)

If War Must Come, I Prefer to Be With My Own People

In 1866, war governor of North Carolina Zebulon B. Vance addressed the Andrew Post, No. 15 of the Grand Army of the Republic and described his patriotic actions in April 1861. A prewar Unionist, Vance instructed the audience that Lincoln and his party offered no reasonable compromise or peaceful alternatives to the South peacefully withdrawing and seeking a more perfect Union.

Bernhard Thuersam, www.Circa1865.com

 

If War Must Come, I Prefer To Be With My Own People

“. . . [T]he people of North Carolina, more perhaps than those of any of the eleven seceding States, were devoted to the Union. They had always regarded it with sincerest reverence and affection, and they left it slowly and with sorrow. They were actuated by an honest conviction . . . that their constitutional rights were endangered, not be the mere election of Mr. Lincoln, as others did, but by the course which subsequent events were compelled to take in consequence of the ideas which were behind him.

The Union men of the State, of whom I was one, whatever may have been their doubts of the propriety of secession, were unanimous in the opinion that it was neither right nor safe to permit the general government to coerce a State. But when Fort Sumter was fired upon, immediately followed by Mr. Lincoln’s call for “volunteers to suppress the insurrection,” the whole situation was changed instantly.

The Union men had every prop knocked from under them, and by stress of their own position were plunged into a secession movement. I immediately, with altered voice and manner, called upon the assembled multitude to volunteer, not to fight against but for South Carolina. I said, if war must come I prefer to be with my own people. If we had to shed blood, I preferred to shed Northern rather than Southern blood.

If we had to slay, I had rather slay strangers than my own kindred and neighbors; and that it was better, whether right or wrong, that communities and States should go together and face the horrors of war in a body — sharing a common fate, rather than endure the unspeakable calamities of internecine strife.

To those at all acquainted with the atrocities which have been inflicted upon the divided communities of Missouri, Kentucky and Tennessee, the humanity of my action will be apparent. I went and shared the fate of the people of my native State, having first done all I could to preserve the peace and secure the unanimity of the people to avert, as much as possible, the calamities of war.

I do not regret that course. I do not believe there is an honorable man within my hearing to-night who, under the same circumstances, would not have done as I did . . .”

(Life of Zebulon B. Vance, Clement Dowd, Observer Publishing and Printing House, 1897, pp. 439-442)

 

Vandals and Goths at Chapel Hill

The University of North Carolina survived the war but found itself in desperate condition when Northern carpetbaggers and local scalawags assumed control of State government in 1868. Historian Hugh Talmage Lefler wrote: “Lack of public confidence, financial support, and students closed the University in 1870. A student expressed it graphically when he wrote of a classroom blackboard: “Today this University busted and went to hell.” The University was reopened in 1875 after North Carolinians regained political control of their State.

Bernhard Thuersam, www.Circa1865.com

 

Vandals and Goths at Chapel Hill

“Of the seventy-eight new Trustees of the University, only four had been members of the former Board, and they were men who had seldom attended meetings of the Trustees and really cared very little about the fate of the University. At the meeting of the new Board in Raleigh, in June 1868, several names were brought forward for the presidency.

After several days of travail the Board brought forth Mr. Solomon Pool, a native of Elizabeth City, North Carolina . . . To be sure, he had no “established reputation” for scholarship, though he was a man of some ability. Immediately after the close of “The War” in 1866, Mr. Pool had resigned his position as Tutor in the University to take a job as a Deputy Appraiser in the Revenue Service of the hated Reconstruction Government, allying himself with the Republican party.

The word “opportunist” had not been invented, but “traitor,” “renegade,” and “apostate” were freely hurled at his complacent head. Mr. Joseph [Engelhard], editor of the Wilmington Journal, said in one issue of his paper that the University was “infested with pismires” (termites?) and the very next week he wrote that it was “presided over by nincompoops.”

The Board of Trustees had its own troubles in forming a new faculty. Mr. S.[S]. Ashley, a Massachusetts Yankee, who was Superintendent of Public Education, placed a relative, James A. Martling, in the “Chair of Belles Lettres,” whatever that means. The Martling family occupied the house recently made vacant by my grandfather’s death, and June Spencer and I, living next door, watched with scornful eyes the daughters of the family . . . with their village beaux on the piazza or strolling in the moonlight, but there was no communication between us.

George Dickson, Professor of Agriculture, was a Friend from Philadelphia who came South as a missionary to the Negroes. He brought Bibles, Testaments, and hymn books from the good Quakers of his city, a fine and generous gesture – if only the recipients had been able to read. Friend Dickson went to England to inquire into some new ideas in agriculture for the benefit of the South. He never came back.

During the first year of the Reconstruction Administration there were thirty-five students in attendance . . . just little bare-foot boys from the village and the adjoining country, with their home-made breeches held up by a string across one shoulder, and their dinner in a little tin bucket. Now and then a small black face appeared among them. None of them knew what it was all about. It was just a grand frolic for them to be “goin’ to college.”

Nor were the pupils altogether appreciative of their advantages. We find one A.J. Banks haled before the faculty for non-attendance upon his classes. His excuse was that he did not want to study Greek, nor did he want to stay in college with “them Yanks.”

The grim record shows that the Archives of the Literary Societies were broken into and their contents scattered. A box of Siamese curios presented to the University by the Reverend Daniel McGilvary, a Presbyterian missionary to Siam, was broken, and objects of rare beauty and great value stolen or destroyed. Scientific apparatus was smashed into bits, and great damage was done to the buildings and libraries of the University . . . owls and bats flew in the broken windows of the buildings, the campus was a jungle of weeds, cattle and hogs roamed the unlighted streets at night.

From a charming, dignified home of cultured people, who enjoyed a gracious society, Chapel Hill had become a desolate, silent wilderness. Even the strangers who composed the puppet faculty disliked each other, the village, the State, and the institution they were expected to serve.”

(A Rare Pattern, Lucy Phillips Russell, UNC Press, 1957, pp. 45-49)

Northern Vandals Liberate Wilmington Furniture

Considered one of Wilmington, North Carolina’s antebellum architectural treasures, the Dr. John D. Bellamy mansion was seized by Northern General Joseph R. Hawley in February 1865 for use as his headquarters while occupying the city — ironically, Hawley was a native North Carolinian. Bellamy’s daughter Ellen was a young girl at the time and later recalled vivid memories of the enemy invasion.

Bernhard Thuersam, www.Circa1865.com

 

Northern Vandals Liberate Wilmington Furniture

“The Federal troops captured Wilmington on February 21, 1865; they took possession of our home, which we had temporarily vacated, and it remained General Hawley Headquarters a long time, even after Lee’s surrender. It was very galling . . .”

[Mother] came up to own dear house, accompanied by a friendly neighbor . . . who was related to General Hawley, and had offered to introduce her. It was most humiliating, and trying, to be entertained by Mrs. Hawley, in her own parlor. Mrs. Hawley showed her raising by “hawking and spitting” in the fire, a most unlady-like act. During the call she offered Mother some figs (from Mother’s own tree) which Aunt Sarah had picked — our own old cook, who had been left there in charge of the premises.

My father made several trips to . . . Washington City before they would grant him his “Pardon.” For what? For being a Southern Gentlemen, a Rebel, and a large Slave Owner! The slaves he had inherited from his father, and which he considered a sacred trust. Being a physician, he guarded their health, kept a faithful overseer to look after them (his home being a regular drug store), and employed a Methodist minister, Rev. Mr. Turrentine, by the year, to look after their spiritual welfare.

Although the war was practically over seven months, we did not get possession of our home ‘till September. [T]he beautiful white marble mantles in the two parlors were so caked with tobacco spit and garbs of chewed tobacco, they were cleaned with great difficulty; indeed, the white marble hearths are still stained . . . No furniture had been left in the parlors . . . On leaving here, the Yankees gave [the] furniture to a servant . . .” In our sitting room, our large mahogany bookcase was left, as it was too bulky for them to carry off; but from its drawers numerous things were taken, among them an autograph album belonging to me brother Marsden.

A number of years later, when my brother John was in Washington as a member of Congress, this same Hawley, then a senator from Illinois, told him of the album “coming into his possession” when he occupied our house, and said he would restore it to him. However, he took care not to do it, although repeatedly reminded.”

(Back With The Tide, Memoirs of Ellen D. Bellamy, Bellamy Mansion Museum 2002, pp. 5-8)

Vandals Pickax the Pews Again

Wilmington, North Carolina’s St. James Parish was violated and ransacked twice in eighty-five years by foreign invaders, first in 1780. In 1865, Rector Dr. Alfred A. Watson wrote Northern General Hawley, demanding his church back and citing it as an infringement on the great Constitutional principle of religious freedom. Dr. Watson refused Hawley’s order to offer prayers for Abraham Lincoln, stating that “Because to ask it of me is to ask me to mock my Maker. What is proposed is not to restrain the Church from uttering prayers hostile to the government, but to require the Church to offer prayers specifically in its favor.”

Bernhard Thuersam, www.Circa1865.com

 

Vandals Pickaxe the Pews Again

“After the capture of Wilmington this venerable church, established in 1738, was seized by order of General Hawley for a military hospital, and in giving an account of it the rector, Dr. Watson (afterward Bishop of the Diocese) reported to the Diocesan Convention of 1866 as follows:

“This was not the first calamity of the sort in the history of the Parish Church of St. James. In 1780, during the occupation of Wilmington by British troops the church was stripped of its pews and furniture, and converted, first into a hospital, then into a blockhouse, and finally into a riding school for Tarleton’s dragoons.

In 1865 the pews were once again torn out with pickaxes . . . There was sufficient room elsewhere, more suitable for hospital purposes. Other hospitals had to be emptied to supply even half the beds in the church which were indeed, never more than half filled.”

(Some Memories of My Life, Alfred Moore Waddell, Edwards & Broughton, pp. 58-59)

The Atomic Jolt Forward for City Planners

The US armed the Soviet Union to the teeth as an ally against Germany, in the process creating a postwar enemy it has spent trillions combatting. The atomic age also spurred city planners into central planning action to disperse city inhabitants which triggered urban blight and suburban sprawl. Jefferson wrote: “I view great cities as pestilential to the morals, the health and the liberties of man”; and noted that “the inhabitants of the commercial cities are as different in sentiment and character from the country people as any two distinct nations, and are as clamorous against the order of things [republicanism] established by the agricultural interest.”

Bernhard Thuersam, www.Circa1865.com

 

The Atomic Jolt Forward for City Planners

“In the atomic age, [a] report concluded, it was the nation’s newspapers that would “set the pattern and pace” of the public’s scientific knowledge and hence determine its ability to make informed decisions on life-and-death issues.”

City planner Tracy B. Augur told the American Institute of Planners in 1946 that the planning profession had a crucial role to play in guiding the urban dispersal being widely advocated as a civil defense measure. If properly conducted, he said, such a project would involve not just piecemeal resettlement [of Americans outside cities], but a whole new urban planning approach.

The starting point, he went on, was for experts to define “the qualities of social life that are worth having” and then to “plan the kind of urban structure that will make them more fully possible.” Demonstrating the readiness of his profession to rise to this challenge, Augur presented a series of charts showing how a “typical city of half a million could be rearranged from a concentrated to a dispersed form without weakening its capacity to function as a single metropolitan unit.”

Such a systematic attack on the problems of the city, Augur insisted, was in any case overdue. “Long before the threat of the atomic bomb,” he said, urban planners had warned of the need for comprehensive programs to save the American city from “the blight . . . gnawing at its innards” and to convey to the larger society their dream of a totally-planned urban environment. Now suddenly Hiroshima and Nagasaki had propelled the question of the urban future to the top of the public’s agenda.

In the realm of city planning, Augur concluded hopefully, “the threat of atomic bombing may prove a useful spur to jolt us forward!”

At long last, city planners would assume the central social role they had long sought. Having lost the public ear after their heyday in the Progressive Era, city planners, under the spur of the atomic threat, would finally take charge of urban development and guide it along rational lines.

In a 1947 address to the National Recreation Association, a longtime activist in the park and playground movement painted the familiar grim picture of mass leisure in the atomic age, but hastened to offer a solution: “The answer to all this is, of course, Education and Recreation.”

The government must take the lead, he said, in expanding the nation’s recreational resources, including “parks and playgrounds, game reserves, public theaters, opera houses, orchestras, [and] hobby centers.”

Echoing Tracy Augur’s message to the city planners, this speaker assured the recreation specialists that their profession would be crucial to society’s survival in the era of atomic energy. “Unless ability to make wise use of leisure increases,” he insisted, “there is no doubt that our civilization is doomed.”

However implausible and even comic such views seem in retrospect, they were advanced in all earnestness in the perfervid post-Hiroshima cultural climate.”

(By the Bomb’s Early Light, American Thought and Culture at the Dawn of the Atomic Age, Paul Boyer, UNC Press, 1994, pp. 152-153)

“They Have Made a Nation”

Lincoln appointed no men to his cabinet who were familiar with Southern sentiment or sensitivities – an act which might have avoided a collision and perhaps have truly “saved the Union.” The Republican Party won the contest and would not be denied the fruits of victory no matter the cost. Charles Francis Adams was appointed minister at London by Lincoln, somewhat appropriate as Adam’s grandfather himself viewed the presidency as monarchical. More important, Adams was a Republican politician with little regard for the American South and put party above the welfare of the country.

Bernhard Thuersam, www.Circa1865.com

 

“They Have Made a Nation”

“For the post at London Lincoln had made one of his best appointments. As a boy [Charles Francis Adams] had witnessed stirring events in Europe; in the company of his mother he had taken the long and arduous winter journey by carriage from St. Petersburg to Paris to join his father John Quincy Adams. Passing through the Allied lines, he reached Paris after Napoleon’s return from Elba.

By 1861 he had served as legislator in Massachusetts, had become prominent as a leader of the “conscience” Whigs and the Free-Soilers, and had achieved the position of an influential leader of the national House of Representatives where his main contribution was as a moderate Republican earnestly engaged in the work of avoiding war.

Though depressed at the nomination of Lincoln, whom he never fully admired, he accepted appointment as minister to England and gave of his best as a loyal servant of the Lincoln administration.

Through all the diplomatic maneuvers there ran the central question of recognition of the Confederacy and the related questions of mediation, intervention and the demand for an armistice. Had the South won on any of these points, victory would have been well-nigh assured. By September of 1862 [Lord] Palmerston and Russell’s deliberations had reached the point where, in view of the failures of McClellan and Pope and the prospects of Lee’s offensive, Palmerston suggested “an arrangement upon the basis of separation” (i.e., Southern victory); while Russell, the foreign minister, wrote in answer that his opinion the time had come “for offering mediation . . . with a view to the recognition of the independence of the Confederates.”

[Just] at this juncture there came a bombshell in the speech of the chancellor of the exchequer, W.E. Gladstone, at Newcastle (October 7) in which he said:

“Jefferson Davis and other leaders of the South have made an army; they are making, it appears, a navy; and they have made what is more important than either, — they have made a nation . . . We may anticipate with certainty the success of the Southern States so far as regards their separation from the North.”

(The Civil War and Reconstruction, James G. Randall, D.C. Heath & Company, 1937, pp. 461-462; 468-469)

The Anticipated Profits of Next Year’s Pay Checks

Lincoln instituted a national banking system which “developed into something that was neither national nor a banking system” and more represented a loose organization of currency factories “designed to . . . [serve] commercial communities and confined . . . almost entirely to the New England and Middle Atlantic States.” This system was more concentrated in New York and fraught with abuses, and superseded by the even more abusive Federal Reserve Act of 1913.

Bernhard Thuersam, www.Circa1865.com

 

The Anticipated Profits of Next Year’s Pay Checks

“July 3, 1930

Mr. McFadden: “Mr. Speaker and gentlemen, time and events have arrived at a point where we should no longer deceive ourselves concerning the business situation. Continued statements of unfounded optimism will have only an unhappy effect upon the minds of millions of our citizens who are now unemployed and who, in the circumstances, must continue to be unemployed for many months to come. The economic condition in which we find ourselves is too sustained and deeply seated to be met by pronouncements that it does not exist.

Let us face the truth – that we and the world are undergoing a major economic and business adjustment which is and will be both drastic and painful. These consequences will be particularly severe in the United States, because they will force many people to recede from the standards of living and expenditure attained during the past 14 years.

Some part of this condition is the natural consequence of the operation of basic economic laws which function with little regard for human legislation. A large part is due to mismanagement of our national affairs. A still larger part is due to a deliberately contrived and executed program which has as its object the impoverishment of the people of the United States.

The end of the World War found us with a greatly expanded industrial and credit structure, to large, by far for the requirements of our national needs as the latter existed before the beginning of the war period of abnormal consumption. It was clearly a time to halt and to analyze fundamental economic facts. We did not do this.

Rather we chose to proceed with our abnormal production and to stretch the limits of credit still further. War production and its profits had made Americans drunk with power, and ambition for more power. Luxuries developed in the disorganization of war became necessities with the reestablishment of peace.

The American peop0le entered upon a decade in which the whole structure of their lives was to be passed upon the principle of discounting the future. A vast system of installment credit sprang into life almost overnight, aided by the optimism of the Federal Reserve system. The automobile industry expanded more rapidly and to greater size than any industry had expanded in history.

The public was encouraged by advertising and propaganda to buy beyond its immediate means. Further industrial expansion was financed by the same expansion of credit which made installment buying possible. Consumption was expanded and financed upon the consumer’s promise to pay and production was expanded upon by capitalizing the producer’s hope that the consumer would keep that promise.

In the period between 1920 and the present time we experienced the full use and purpose of the credit machinery built up with the Federal Reserve system. It was but a logical development that anticipated profits should be capitalized as anticipated production and consumption had been capitalized – and that the Federal Reserve system should in turn finance tis capitalization of anticipated profits.

The entry of millions of Americans of moderate means into stock-market speculation [was] a natural consequence of the policy of expansion to which we had committed ourselves. It was also a logical development that the Federal Reserve should expand broker’s loans to make possible a huge inflation of the business of speculating in securities on margins.

All this brought the country to a point where the individual was living beyond his personal means, buying more than he could afford on his hope that he could afford to pay for it in the future and then speculating in the hope that he could make enough profit to pay his debts when they came due. In brief, the greater part of the American business structure was built upon the anticipated profits of next year’s pay checks.”

(Basis of Control of Economic Conditions, the Collective Speeches of Congressman Louis T. McFadden, Omni Press, 1970 pp. 64-66)

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