Browsing "Antebellum Economics"

Achieving Southern Destiny

Washington warned that sectional animosity would endanger the new Union; by 1826 both Jefferson and Adams deplored the loss of republican direction provided by the revolutionary generation. The tariff controversy of the early 1830s ignited the fire that would not be quelled until 1865, though the Constitution and the Union were destroyed in the process.

Bernhard Thuersam, www.Circa1865.com

 

Achieving Southern Destiny

“[Henry] Clay’s campaign for his “American System” drew fire mainly from the South Carolinians.

In 1827, Robert J. Turnbull, under the pseudonym of Brutus, published a series of thirty-three articles in the Charleston Mercury, and promptly issued them in a pamphlet entitled “The Crisis: Or Essays on the Usurpation of the Federal Government,” which he dedicated “to the people of the “Plantation States” as a testimony of respect, for their rights of sovereignty.”

Turnbull vehemently urged the people of the South to face the facts, to realize that the North was beginning to use its control of Congress for Southern oppression by protective tariffs and otherwise; and he proposed as a remedy that South Carolina should promptly interpose her sovereignty, and safeguard Southern interests, by vetoing such congressional acts as she should decide to be based upon Federal usurpations and intended for Northern advantage at the cost of Southern oppression.

“. . . William H. Trescott’s “The Position and Course of the South” [was] an embodiment of the soundest realization of the sectional conditions of the Southern section in the closing decade of the ante-bellum period. The author, a leading, experienced, conservative citizen of South Carolina, states in his preface, dated Oct. 12, 1850, that his purpose is to unify the widely separated parts of the South.

He says his views are not new, but they are characteristically Southern: “We are beginning to think for ourselves, the first act toward acting for ourselves.” The essay begins with an analysis of industrial contrasts.

The political majority of the North represents labor; that of the South, capital; the contrast is violent. Free labor hates slave labor, and it will overturn the system if it can. The two sections with many contrasting and conflicting characteristics are combined under the United States Constitution, but they are essentially irreconcilable. Even in foreign relations the North is jealous of foreign powers for commercial and industrial reasons, while Southern industry is not competitive with, but complementary to European industry and commerce, and the South, if a nation by itself, would be upon most cordial terms with foreign powers.

“The United States government under the control of Northern majorities must reflect Northern sentiment, sustain Northern interests, impersonate Northern power. Even if it be conceded that the South has no present grievance to complain of, it is the part of wisdom to consider the strength and relations of the sections, and face the question, what is the position of the South? In case our rights should be attacked, where is our constitutional protection? The answer is obvious.

But one course is open to her honor, and that is secession and the formation of an independent confederacy. There are many men grown old in the Union who would feel an honest and pardonable regret at the thought of its dissolution. They have prided themselves on the success of the great American experiment in political self-government, and feel that the dissolution of the Union would proclaim a mortifying failure. Not so.

The vital principle of political liberty is representative government, and when Federal arrangements are discarded, that lives in original vigor. Who does not consider the greatest triumph of the British constitution the facility and vigor with which, under slight modifications, it developed into the great republican government under which we have accomplished our national progress. And so it will be with the United States Constitution.

We believe that Southern interests demand an independent government. We believe that the time has come when this can be established temperately, wisely, strongly. But in effecting this separation we would not disown our indebtedness, our gratitude to the past. The Union has spread Christianity, fertilized a wilderness, enriched the world’s commerce wonderfully, spread Anglo-Saxon civilization. “It has given to the world sublime names, which the world will not willingly let die — heroic actions which will light the eyes of a far-coming enthusiasm. It has achieved its destiny. Let us achieve ours.”

(History of the Literary and Intellectual Life of the Southern States (Vol. VII), Ulrich B. Phillips, Southern Historical Publication Society, 1909, pp. 193-198)

 

Southern Historians Sapping and Mining the Northern Myth

Historian and author Frank L. Owsley dedicated his professional life to righting the revisionist history of postwar Northern textbooks and relating an honest appraisal of why the War was fought between North and South. He viewed the conflict of 1861 as a struggle between Southern agrarian culture versus Northern industrialism intent upon political and economic control of the entire country.

Bernhard Thuersam, www.Circa1865.com

 

Southerners Sapping and Mining the Northern Myth

“In describing the writings of one New Southerner, Frank Owsley wrote Allen Tate on February 29, 1932: “He is the typical “New Southerner,” the defeated [and] conquered . . . American. Dodd [William E. Dodd, Frank’s major professor at Chicago] remarked to me that it did not hurt him so much to be whipped! Or to see the South whipped! What broke his heart was to see the South conquered . . . he says it is the most completely defeated and conquered people of all history.”

Frank continued: “I believe that the spiritual and intellectual conquest of the South, which Dodd laments, is superficial. The leadership is in the hands of [these New Southerners] . . . and the history textbooks have been written by Yankees.

The purpose of my life will be to undermine by “careful” and “detached,” “well-documented,” “objective” writing the entire Northern myth from 1820-1876. My books will not interest the general reader. Only the historians will read them, but it is the historians who teach history classes and write textbooks and they will gradually, and without their own knowledge be forced into our position. There are numerous Southerners sapping and mining the Northern position by objective, detached books and Dodd is certainly one of the leaders.

By being critical first of the South itself, the Northern historian is disarmed, and then Dodd hits where it will do the most good . . . [Dodd told Davidson] that the younger Southern writers were making the Northern writers look unimportant.”

Frank’s essay in I’ll Take My Stand, “The Irrepressible Conflict,” concerned “the eternal struggle between the agrarian South and the commercial and industrial North to control the government, either in its own interest, or negatively, to prevent the other section from controlling it in its interests.”

At the time the Union was formed, the two sections were evenly balanced both in population and in number of States. The conflict worsened as the balance of power began to change. Slavery was an element of the agrarian society, but not an essential one. Even after the war, when there was no slavery, the South was an agrarian section. The irrepressible conflict was not a conflict between slavery and freedom, nor was it merely a protest against industrialism. It was equally a protest against the North’s brazen and contemptuous treatment of the South “as a colony and as a conquered province.”

(Frank Lawrence Owsley, Historian of the Old South, Harriet C. Owsley, Vanderbilt University Press, 1990, pp. 78-81)

The War for Tariffs, Taxes and Astonishing Profits

The war commenced by Lincoln in 1861 immediately presented his administration with the problem of a conflict the United States could simply not afford. In April 1861, federal spending was only about $172,000 a day, raised by tariffs and land sales. By the end of July 1861, Lincoln had caused this to increase to $1 million, and by the end of December it was up to $1.5 million per day. Also in December 1861 Northern banks had to stop paying their debts in gold, with the federal government doing the same shortly after and resorting to printing money. The country had gone off the gold standard, Wall Street was in a panic, and Lincoln would lament, “The bottom is out of the tub, what shall I do?” The cost of the war would eventually reach $8 billion, enough to have purchased the freedom of every slave five times over – and provided each with the proverbial 40 acres, and the mule.

Bernhard Thuersam, www.Circa1865.com

 

The War for Tariffs, Taxes and Astonishing Profits

“By May 1864 [financier Jay] Cooke was selling [Northern] war bonds so successfully that he was actually raising money as fast as the War Department could spend it, no mean feat for that was about $2 million a day at this point. Altogether, the North raised fully two-thirds of its revenues by selling bonds. If Abraham Lincoln must always be given the credit for saving the Union, there is also no doubt that the national debt was one of the most powerful tools at his disposal for forging victory.

Although the [Northern] people were willing to endure very high taxes during the war, peacetime was another matter altogether. Immediately after the war the cry for repeal of the wartime taxes became insistent. With military expenses quickly dropping, the problem, was what taxes to cut. American industrialists, who had prospered greatly thanks to wartime demand and wartime high tariffs, naturally did not want the tariffs cut.

Because the Civil War had broken the political power of the South, the center of opposition to the tariff, they got their way. The tariff was kept at rates far above the government’s need for revenue as the North industrialized at a furious pace in the last three decades of the nineteenth century and became the greatest – and most efficient – industrial power in the world.

Of course, no matter how large, efficient, and mature these industries became, they continued to demand [tariff] protection, and, thanks to their wealth and political power, get it.  As Professor William Graham Sumner of Yale explained as early as 1885, “The longer they live, the bigger babies they are.” It was only after the bitter dispute between Andrew Carnegie and Henry Clay Frick caused the astonishing profits of the privately held – and highly protected – Carnegie Steel Company to become public knowledge, in 1899, that the political coalition behind high tariffs began to crack.

Before the Civil War there had been little advocacy of an income tax in this country, at least at the federal level, although by the war six States had implemented such taxes for their own revenue purposes. But once a federal income tax was in place, thanks to the Civil War, it quickly acquired advocates, as political programs always do.

These advocates pushed the idea relentlessly . . . Republican Senator John Sherman . . . said during a debate on renewing the income tax in 1872, that “here we have in New York Mr. Astor with an income of millions derived from real estate . . . and we have along side of him a poor man receiving $1000 a year. [The law] is altogether against the poor man . . . yet we are afraid to tax Mr. Astor. Is there any justice in it? Why, sir, the income tax is the only one that tends to equalize these burdens between the rich and the poor.”

(Hamilton’s Blessing, John Steele Gordon, Penguin Books, 1997, pp. 79-83)

War Profiteering in the North

Published as a textbook well before America’s cultural revolution of the 1960’s, John Hicks “The Federal Union” can be trusted as a fairly accurate source of United States history and free of cultural Marxist revisionism. Below, he touches on the North’s generous government supply contracts, child labor and general wartime prosperity while its bounty-enriched blue-clad soldiers devastated Americans in the South to preserve a territorial Union.

Bernhard Thuersam, www.Circa1865.com

 

War Profiteering in the North

“When the Civil War broke out the North had not fully recovered from the depression that had followed the panic of 1857, and for a time business interests were more frightened than stimulated by the clash of arms. By the summer of 1862, however, a surge of prosperity had put in its appearance that was to outlast the war.

With millions of men under arms the [Northern] government was a dependable and generous purchaser of every kind of foodstuff, and its equally great need of woolen goods and leather strengthened the market also for raw wool and hides. Probably the sales of the farmers made directly or indirectly to the government more than offset the losses sustained by wartime interference with sales to the South.

[And] with the South out of the Union, a homestead law, so long the goal of believers in free land, was speedily enacted (1862). Thereafter any person who was head of a family, or had arrived at the age of twenty-one years, whether a citizen of the united States or an alien who had declared his intention of becoming a citizen, might take up a quarter section of public land, and, after having lived upon it for five years and improved it, might receive full title to it virtually free of charge.

What came in later years to be called “heavy industries” profited enormously from the war. Purchases of munitions abroad practically ceased after the first year because of the rapidity with which American factories supplied the government’s needs . . . the government itself went deeply into the business of manufacturing war materials as public opinion would permit.

High tariffs ensured the northern manufacturers against the dangers of foreign competition. A protectionist policy had been demanded by the Republican national platform of 1860, and a higher schedule of tariffs . . . was placed upon the statute books two days before [President James] Buchanan left office. This speedy answer to the prayers of the protectionists was made possible by the withdrawal from Congress of the delegations from the seven seceding States of the lower South, and by the fact that President Buchanan was no longer unmindful of the wishes of the manufacturers of his home State [of Pennsylvania].

The original Morrill Tariff Act was repeatedly revised upward during the war, until by 1864 the average of duties levied on imports had reached forty-seven per cent, the highest thus far in the history of the nation. The significance of this development can scarcely be overemphasized. A policy which the South had persistently blocked in the years preceding the war became an actuality during it, and as subsequent events were to prove, remained as a permanent fixture in American political and economic life.

The profits of war bred a spirit of extravagance and frivolity among the non-combatants of the north that contrasted oddly with the long casualty lists displayed as a regular part of the daily news. Social life reached a dizzying whirl, with more parties and dances, theaters and circuses, minstrel shows and musicales than ever had been known before.

According to a statement published by the Springfield Republican in 1864, many of the factories whose profits during the war had been “augmented beyond the wildest dreams of their owners” paid their laborers only from twelve to twenty per cent more than before the war. “There is absolute want in many families, while thousands of young children who should be in school are shut up at work that they may earn something to eke out the scant supplies at home.”

(The Federal Union, A History of the United States to 1865, John D. Hicks, Houghton Mifflin Company, 1948, pp. 660-665)

Generations Living Off Future Generations

Jefferson wrote in 1792: “As the doctrine is that a public debt is a public blessing, so they think a perpetual one is a perpetual blessing, and therefore wish to make it so large that we can never pay it off.” Prior to 1861 it as common for American presidents to view that indebting future administrations was both immoral and unconscionable.

Bernhard Thuersam, www.Circa1865.com

 

Generations Living Off Future Generations

“On September 6, 1789, Jefferson admonished James Madison from Paris that the country should get straight, “at the threshold of our new government,” how we are to keep the debt from destroying the democracy. Jefferson’s premise, which he believed to be “self-evident,” is that one generation cannot – either morally or in fact – bind another.

It follows that “No generation can contract debts greater than may be paid during the course of its own existence.” The “earth belongs in usufruct [trust] to the living . . . [T]he dead have neither powers nor rights over it.” If one generation can charge another for its debts, “then the earth would belong to the dead and not to the living generation.”

Jefferson continued: “The conclusion then, is, that neither the representatives of a nation, nor the whole nation itself assembled, can validly engage debts beyond what they can pay in their own time.”

Madison wrote back that he generally agreed but thought debt was justifiable if it built a project that benefited the future taxpayer – a useful bridge, for example. Jefferson answered that the power to borrow was too dangerous to allow exceptions – any exception would expand or destroy the prohibition.

Madison’s argument seemed plausible, but Jefferson’s camel’s-nose-under-the-tent concern was right. No government will stay within Madison’s exception. World War II, the last time this country could make any kind of legitimate case for a benefit to future generations, was in fact financed 47 percent by pay as you go taxes, which provided $137 billion out of a total cost of $304 billion.

Jefferson could not get his 1798 amendment adopted, but the country got more chances to adopt Jeffersonian principles in 1994, 1995, and 1996 when Sen. Sam Nunn (D., GA) proposed a Balanced Budget Amendment. At the time, the national debt was large (about four trillion dollars) but could have been dealt with. It was not yet a perpetual debt.

Senator Nunn called his legislation the “Jefferson Amendment.” It required that Congress balance expenses with revenues [and] the public constantly supported Nunn’s amendment by 75-percent margins. But he was defeated by the Clinton Cabinet, which argued that the economy would crash if the federal government couldn’t borrow.

A New York senator said the amendment’s passage could “lead to the devastation of the banking industry.” With the defeat of the Nunn Amendment, the boat sailed for the Republic.”

(Just One More Thing, William J. Quirk, Can the Republic Be Restored?, Chronicles, May 2009, pg. 15)

Yankee Tinkerer Perpetuates Slavery

Eli Whitney of Massachusetts invented his new labor-saving device at a time when the liberating effects of the new republic were emancipating those who had been enslaved by African tribes, sold to British slave-traders, and shipped to North America on New England slavers.  With cotton cultivation made profitable, slavery would expand. 

Bernhard Thuersam, www.Circa1865.com

 

Yankee Tinkerer Perpetuates Slavery 

“The handiwork of a Yankee tinkerer in the summer of 1792 changed everything. Eli Whitney was a genius of a type who would become familiar in the course of the next century, like Robert Fulton, John Deere, Cyrus McCormick, Samuel F. B. Morse, and Thomas Edison, who fused native mechanical aptitude with the entrepreneurial instincts of the dawning industrial age. It was said that as a boy in Massachusetts during the Revolution, Whitney had set up his own small forge and made nails to sell to his neighbors, and then converted them to hairpins after the war.

After graduating from Yale, he went South to take a position as a tutor. As a guest in the home of the widow of General Nathaniel Greene, in Georgia, Whitney overheard several of her neighbors discussing the problems of cotton cultivation. Planters were well aware that a potentially vast market for American cotton was developing in England, where textile manufacture had been revolutionized by the factory system . . .  

Whitney later wrote, “There were a number of very respectable gentlemen at Mrs. Greene’s who all agreed that if a machine could be invented which would clean cotton with expedition, it would be a great thing both to the inventor and to the country. I involuntarily happened to be thinking on the subject and struck out a plan of a machine in my mind.” It was the cotton gin, which would ultimately transform American slavery, project it into its boom time, and transform it into a pillar of the nineteenth-century American economy.

[Whitney] Established a factory at New Haven, and was soon shipping gins Southward, where they would lead to a spectacular burgeoning of cotton cultivation, which would soon be matched by an exploding demand for slaves. [New England] Slave traders made fortunes buying up “surplus” slaves, and long, grim lines of them chained together in awkward lockstep made a familiar sight on the roads leading westward from Maryland, Virginia, and the Carolinas to the slave markets of the frontier Southeast.”

(Bound For Canaan, Fergus Bordewich, Harper Collins, 2005,   pp. 41-42)

 

 

 

 

Spending the Money of Future Generations

Robert Hayne of South Carolina followed Jefferson’s admonition that the national debt was not something to be passed on to future generations; it was considered immoral for a president not to pay the debts incurred under their administrations before leaving office. In encouraging an unending public debt, Daniel Webster, on the other hand, Webster was promoting the American System of Whig politician Henry Clay which would give the government an endless supply of money with which to buy influence and power.  

Bernhard Thuersam, www.Circa1865.com

 

Spending the Money of Future Generations

“The gentleman from Massachusetts [Webster], in alluding to a remark of mine that before any disposition could be made of the public lands, the national debt (for which they stand pledged) must be first paid, took occasion to intimate (that Southerners desire to pay the national debt) “arises from a disposition to weaken the ties which bind the people to the Union.”  

But, adds he gentleman, “so far as the debt may have an effect in binding the debtors to the country, and thereby serving as a link to hold the States together, he would be glad that it should exist forever.” Surely then, sir, on the gentleman’s own principles, he must be opposed to the payment of the debt.

Sir, let me tell that gentleman that the South repudiates the idea that a pecuniary dependence on the Federal Government is one of the legitimate means of holding the States together. A monied interest in the Government is essentially a base interest . . . it is opposed to all the principles of free government and at war with virtue and patriotism. In a free government, this principle of abject dependence if extended through all the ramifications of society must be fatal to liberty. Already we have made alarming strides in that direction.

The entire class of manufacturers, the holders of stocks with their hundreds of millions in capital, are held to the Government by the strong link of pecuniary interests; millions of people, entire sections of the country, interested, or believing themselves to be so, in the public lands and the public treasure, are bound to the Government by the expectation of pecuniary favors.

If this system is carried on much further, no man can fail to see that every generous motive of attachment to the country will be destroyed, and in its place will spring up those low, groveling, base and selfish feelings which bind men to the footstool of despots by bonds as strong and as enduring as those which attach them to free institutions. 

(The Webster-Hayne Debate on the Nature of the Union, Herman Belz, Editor, Liberty Fund, 2000, pp. 42-43. Speech of Robert Y. Hayne of South Carolina, January 25, 1830) 

 

Introducing the Slaves to Jesus

In the small plantation communities where African slaves lived and labored it was Southern men like Presbyterian Rev. Charles Colcock Jones who brought them from heathenism to Christianity.  The elder Roswell King mentioned below was a Connecticut native who came South to manage the large antebellum estates of Pierce Butler in Glynn County, Georgia. The son, also named Roswell King, later moved to northern Georgia to establish cotton and woolen mills and the town of Roswell, Georgia still bears his name.  It was Northerner Eli Whitney who made large scale cotton production profitable — which supplied slave-produced material to hungry New England mills.  Manhattan bankers provided easy credit to enable land acquisition for more cotton production.

Bernhard Thuersam, www.circa1865.org

 

Introducing the Slaves to Jesus

“My experience with these people [African slaves] was very large, having been for long years the contract physician on the river plantations where religious opportunities were very limited. In many cases, the Negro preacher or watchman (as they were called) was the only teacher and leader they had. Though on a few of the larger estates, salaried chaplains were employed.

I recollect many years ago being engaged in correspondence on the subject. The Reverend Jones spent many years of his useful life, and liberally of his private resources, in endeavoring to do good to these ignorant and dependent people by religious teaching and preaching.

To reassure him in the self-sacrifice of time and means, he addressed a letter of inquiry to Mr. Roswell King of Butler’s Island, where there were nearly a thousand slaves, [asking] whether those professing religion were more orderly and faithful than the others.

I commended the pious work in which he was engaged, but it being often at night and involving a long ride, and his health not being strong, I begged him to assign his labors to some lesser light in the church who was more physically able.

There were wider and more congenial fields waiting for him where his education, talents, eminent piety, and zeal in his Master’s service made him an honored and distinguished name to his life’s end.”

(Dr. Bullie’s Notes, Reminiscences of Early Georgia, James Holmes, Cherokee Publishing Company, 1976, pp. 161-163)

Protesting British and New England Slave Trading

During the colonial period it was common for North Carolina planters needing labor to trade cargoes of tar and pitch to New Englanders for the slaves they imported. On the eve of the Revolution the North Carolina Provincial Congress resolved that “We will not import any slave or slaves, nor purchase any slave or slaves imported or brought into this province by others from any part of the world after the first day of November next [1774].”

Bernhard Thuersam, www.circa1865.org

 

Protesting British and New England Slave Trading

“So far as can be determined, no tax was levied on the importation of slaves into North Carolina prior to the Revolution. On the other hand, the Virginia Assembly made numerous attempts to discourage the importation of slaves by imposing from time to time a tax on all slaves brought in from Maryland, North Carolina, the West Indies, and Africa.

The first impressive protest for any considerable body of citizens of the colony against the African slave trade was registered by the freeholders of Rowan County [North Carolina] in 1774. They placed themselves on record against the African slave trade in the following resolution:

“Resolved that the African slave trade is injurious to this colony, obstructs the population of it, prevents manufacturers and other useful emigrants from Europe from settling among us, and occasions an annual increase of the balance of trade against the colonies.”

Due in part to the dearth of labor occasioned by the Revolution, there was a resumption of the slave trade after the war. It was not, in fact, until 1787 that the General Assembly took the initial step in taxing the traffic, basing its action on the general ground that the importation of slaves “into this State is productive of evil consequences and highly impolitic.”

Whatever the motive, a duty of 5 [pounds] was levied on all slaves brought in by water. Slaves between the ages of thirty and forty were made subject to the same duty, while those between the ages of twelve and thirty were subject to a duty of 10 [pounds]. In addition, a general head tax of five pounds was imposed on all slaves imported from the coast of Africa. The act of 1787 did not prohibit, but no doubt discouraged, the slave trade.

Due presumably to the ratification of the Federal Constitution by North Carolina in 1789, the act of 1787 was repealed in 1790, and there was no restriction on the importation of slaves until 1794 . . . and in that year a heavy fine was imposed on the importation of slaves. [Its] passage might have been further delayed had not a terrifying Negro insurrection occurred in San Domingo in 1791. This insurrection thoroughly aroused the people of the State to a realization of the potential danger of a large Negro population.

[In] 1795 the legislature placed a further restriction on the importation of slaves by making it unlawful for any person removing to the State, “with intent to settle or otherwise,” from any of the West Indian or Bahama Islands to bring with him any Negroes or people of color above the age of fifteen years, under penalty of 100 [pounds] for each and every slave or person of color brought in.

To many public men of the time the danger from this source seemed imminent; so much so that, in 1798, Governor Samuel Ashe issued a proclamation calling on the people of the State to prevent the landing of slaves or free persons of color. He stated in his proclamation that several shiploads of San Domingan Negroes had set sail, and that one shipload had arrived in Charleston.

Despite precautions, West Indian Negroes found their way into the State. The landing of a number of emancipated Negroes from the island of Guadaloupe at Wilmington in 1803 so alarmed the inhabitants of the town that they memorialized Congress to take action to prevent the introduction into the United States of any persons of that class.”

(Slaveholding in North Carolina, An Economic View, Rosser Howard Taylor, Negro Universities Press, 1969 (original UNC Press, 1926), pp. 23-26)

 

Spending the Money of Future Generations

Robert Hayne of South Carolina followed Jefferson’s admonition that the national debt was not something to be passed on to future generations; it was considered immoral for a president not to pay the debts incurred under their administrations before leaving office. In encouraging an unending public debt, Daniel Webster, on the other hand, Webster was promoting the American System of Whig politician Henry Clay which would give the government an endless supply of money with which to buy influence and power.

Bernhard Thuersam, www.circa1865.org

 

Spending the Money of Future Generations

“The gentleman from Massachusetts (Webster), in alluding to a remark of mine that before any disposition could be made of the public lands, the national debt (for which they stand pledged) must be first paid, took occasion to intimate (that Southerners desire to pay the national debt) “arises from a disposition to weaken the ties which bind the people to the Union.”

But, adds he gentleman, “so far as the debt may have an effect in binding the debtors to the country, and thereby serving as a link to hold the States together, he would be glad that it should exist forever.” Surely then, sir, on the gentleman’s own principles, he must be opposed to the payment of the debt.

Sir, let me tell that gentleman that the South repudiates the idea that a pecuniary dependence on the Federal Government is one of the legitimate means of holding the States together. A monied interest in the Government is essentially a base interest . . . it is opposed to all the principles of free government and at war with virtue and patriotism. In a free government, this principle of abject dependence if extended through all the ramifications of society must be fatal to liberty. Already we have made alarming strides in that direction.

The entire class of manufacturers, the holders of stocks with their hundreds of millions in capital, are held to the Government by the strong link of pecuniary interests; millions of people, entire sections of the country, interested, or believing themselves to be so, in the public lands and the public treasure, are bound to the Government by the expectation of pecuniary favors.

If this system is carried on much further, no man can fail to see that every generous motive of attachment to the country will be destroyed, and in its place will spring up those low, groveling, base and selfish feelings which bind men to the footstool of despots by bonds as strong and as enduring as those which attach them to free institutions.”

(The Webster-Hayne Debate on the Nature of the Union, Herman Belz, Editor, Liberty Fund, 2000, pp. 42-43. Speech of Robert Y. Hayne of South Carolina, January 25, 1830)

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