Browsing "Economics"

Diversity Among Louisiana Slave Owners

It was not uncommon for Northerners to own Southern plantations worked by black slaves. Obviously the climate in the South allowed a longer growing season and larger acreage than available in Northern States, and New Englanders were already familiar with black slave labor in their own State, as well as their infamous transatlantic slave trade.  Further, Massachusetts mills since the War of 1812 needed slave-produced cotton which perpetuated African slavery in this country.

 Diversity Among Louisiana Slave Owners

“By the time of the Civil War, Louisiana’s population exceeded 700,000, of which almost half were black slaves or freedmen. A review of the census during the period immediately prior to the Civil War reveals some interesting facts.

There were 13,500 plantations and farms owned by Anglo-Saxon Protestants, French and Spanish Catholics, Jews and Negroes. There were approximately 1,640 large slaveholders who tilled 10 percent of the total acreage planted. A large slaveholder was one who owned 50 or more slaves. Therefore, 90 percent of the planted acreage in Louisiana was farmed by small slaveholders, non-slaveholders, and free blacks.

There were Negro slaveholders throughout the South but more in Louisiana than any other State.  In 1830 there were 10 Negroes who had 50 or more slaves. By 1860, only 6, who together owned 493 slaves or an average of 82 each. There were a considerable number of Negro slave owners who were not classed as large slaveholders; Natchitoches parish for instance had 14 Negro slaveholders.

Many Northerners and Europeans who had money to invest settled Louisiana to enjoy its prosperity. The census reveals that in 1850 among the largest slaveholders were 9 from Connecticut; 9 from Massachusetts; 7 from Ohio, 6 from Missouri; 6 from New Hampshire; 5 from Maine; 4 from Indiana; 4 from New Jersey; 3 from Vermont; 1 from Delaware; 2 from Rhode Island; 2 from the District of Columbia; 17 from Pennsylvania; 20 from New York; 33 from Maryland; 12 from Ireland; 6 from Scotland; 5 from England; 2 from Germany; 2 from Santo Domingo; 1 from Canada; 1 from Austria, 1 from Wales; 1 from Jamaica; and 17 from France.

The attraction to Louisiana was the same as it is today – prosperity. The ancient plantation system, patterned after the English manorial system, found its ultimate fruition in the South and especially in Louisiana.  

Fewer than one-third of the men who fought for the South during the Civil War came from families who had slaves. Therefore one can readily dismiss the idea that every Confederate was a planter sipping bourbon or gin on his spacious veranda while his minions in the field brought in his wealth. The majority of Southern people were hard-working small farmers, carving a niche in the wilderness, intent upon attaining some security in a troublesome world.

Emotional Northerners, reflected the claim that the war was fought solely for slavery. But Lincoln himself stated that if it would save the Union, he would rather see the United States all-slave, part-slave or slave-free, depending on the recipe needed for the preservation of the United States. Even the Emancipation Proclamation clearly exempted those Southern Sates held by Union forces.”

(Louisiana Legacy: A History of the State National Guard, Evans J. Casso, Pelican Publishing, 1976, excerpt pp. 76-77)

On The Bare Hills, Men Without a Country

It is said that Grant at Appomattox offered rations and transportation home to Lee’s surrendered Americans, or to exile in Halifax, Nova Scotia. Many might have gladly avoided living under Northern rule, “but in distant homes were old men, helpless women and children, whose cry for help it was not hard to hear.” With all the destruction around them and carpetbaggers flowing Southward, “no one dreamed of what has followed.”

On the Bare Hills, Men Without a Country

“[The enemy] were proud of their success, were more willing to give than our men, in the soreness of defeat, and not a man of that grand army of a hundred and fifty thousand men but could, and, I believe, would testify, that on purely personal grounds, the few worn out, half-starved men that gathered around General Lee and his falling flag held the prouder position of the two. Had politicians left things alone, such feelings would have resulted in a very different condition of things.

“We stacked eight thousand stands of arms, all told: artillery, cavalry, infantry, stragglers, wagon rats and all the rest, from twelve to fifteen thousand men.

The United States troops, by their own estimate, were one hundred fifty thousand men, with a railroad connecting their rear with Washington, New York, Germany, France, Belgium, Africa – all the world, and the rest of mankind,” as General [Richard] Taylor comprehensively remarked, for their recruiting stations were all over the world, and the crusade against the South, under pressure of the “almighty dollar,” was as absolute and varied in its nationality as was that of “Peter the Hermit,” under pressure of religious zeal upon Jerusalem.

Those of us who took serious consideration of the state of affairs, felt that with our defeat we had absolutely lost our country – the one we held under the Constitution – as though we had been conquered and made a colony of by France or Russia. So far, it was all according to the order of things, and we stood on the bare hills, men without a country.”

(Dickison and His Men, Mary Elizabeth Dickison, Courier-Journal Printing, 1890, excerpt pp. 241-243)

Losing Commercial Probity

“Another real Victorian virtue, not to be discredited by many imaginary Victorian virtues, [was] a strict standard of commercial probity . . . when the notion of success was mixed up not only with cynicism but with a queer sort of piratical romance. [But today] the favorite modern ideal in morals and even in religion, especially the religion popularized in the papers for millions of modern businessmen, is the word “adventure.”

The most menacing monster in morals, for the businessmen of my old middle-class, was branded with the title of “adventurer.” In later times, I fancy, the world has defended some pretty indefensible adventurers by implying the glamour of adventure.

My own father and uncles were entirely of the period that believed in progress, and generally in new things, and all the more because they were finding it increasingly difficult to believe in old things; and in some cases in anything at all. But though as Liberals they believed in progress, as honest men they often testified to deterioration.

I remember my father telling me how much he had begun to be pestered by swarms of people wanting private commissions upon transactions, in which they were supposed to represent another interest.

He mentioned it not only with the deepest disgust, but more or less as if it were a novelty as well as a nuisance. He was himself in the habit of meeting these unpleasant people with a humorously simulated burst of heartiness and even hilarity; but it was the only sort of occasion on which his humour might be called grim and ferocious.

When the agent, bargaining for some third party, hinted that an acceptable trifle would smooth the negotiations, he would say with formidable geniality, “Oh, certainly! Certainly! So long as we are all friends and everything is open and above board! I am sure your principals and employers will be delighted to hear from me that I’m paying you a small –__”

He would then be interrupted with a sort of shriek of fear and the kind diplomatic gentleman would cover his tracks as best he could in terror. “And doesn’t that prove to you,” said my father with innocent rationalism, “the immorality of such a proposal?”  

(The Autobiography of G.K. Chesterton, Sheed & Ward, 1936, excerpt pp. 16-17)

The Most Costly Price of the Civil War

It is estimated that the Civil War cost $8 billion, which, including destruction of property, derangement of the power of labor, pension system and other economic losses, is increased to $30 billion. To this total is added the human cost of 620,000 battlefield deaths – the war killed one out of every four Southern white males between 20 and 40 — and at least 50,000 civilians dead from indiscriminate Northern bombardment of cities, and starvation.

In the immediate postwar and its two million men in blue mustered out, the Grand Army of the Republic (GAR) became a rich political endorsement as Northern politicians lined up to offer higher pensions in return for votes.  

The Most Costly Price of the Civil War

“War always intrenches privilege in the councils of the nation. The power of the financier is increased. He is called in to rule. Otherwise the state would not go on. Such was our own experience as a result of the Civil War.

Prior to 1861 a democratic spirit prevailed in the nation. Economy was the note in government expenditures. The Civil War ushered on a new era. The need for revenue brought about a merger of the protected interests of Pennsylvania and New England and the banking interests of Wall Street with the Treasury Department, a merger which has continued ever since.

Corruption born of army contracts and war profits penetrated into Congress and the various departments of the government. The public domain of the West was squandered in land grants to the Pacific Railroads with no concern for posterity. The richest resources of the nation were given away. For years after the war, privilege was ascendant and democracy reached to lowest ebb in our history.

Taxes were collected not for the needs of the government, but to maintain a protectionist policy. Revenues were squandered and pork-barrel methods prevailed. Pensions were recklessly granted to prevent a treasury surplus, while appropriations for rivers and harbors, for public buildings, and other purposed became the recognized practice of congressional procedure.

For fifty years the reactionary influences which gained a foothold during the Civil War maintained their control of the government. This was the most costly price of the Civil War, far more costly than the indebtedness incurred or the economic waste involved.”

(Why War? Frederic C. Howe, Charles Scribner’s Sons, 1918, excerpt pp. 313-314)

Jul 11, 2020 - Antiquity, Democracy, Economics, Historical Accuracy, Lost Cultures, Prescient Warnings    Comments Off on The New Deal: An Old Racket

The New Deal: An Old Racket

About 400 years before Christ, Athens, was perhaps the first republic overtaken by economic depression with widespread unemployment and many flocking to the Agora seeking aid. First the farmers were granted handouts, then came the laborers and others wanting their share. The ancient racket continues unabated today.

The New Deal: An Old Racket

“It is clear from Plutarch’s account that Pericles, the political ruler of Athens, understood the cause of the trouble. Plutarch describes the character of the workers who thronged into Athens clamoring for relief. They were, he tells us, brass workers, wood workers, smiths, moulders, founders, stonecutters, goldsmiths, ivory workers, and painters. It was perfectly obvious that Athens was in a depression because of the collapse of the building industry and particularly the extensive shipbuilding industry at Piraeus, the port of Athens. In other words, the capital goods industry was in a slump.

Its effects spread to others – to farmers, who were the first to get grants in aid through the munificence of the great man, Pericles. This encouraged the idle workmen to demand attention and they were given a dole amounting to six cents a day.

Pericles tried to lessen the effects of the depression by settling the unemployed in distant colonies. He sent 500 to the Isle of Naxos, 250 to Andros, a thousand to Thrace, and others to various colonies of Attica. And Plutarch observes that he did this “to discharge the city of the idle,” who were, by reason of their idleness, “a busy and meddlesome crowd of people.”

All this brought down the scorn of the wealthy conservative, Thuycidides (not the historian), who estimated that some 20,000 citizens one way or another were on the government payroll – which was something of an exaggeration.

In the end, Pericles tried to deal with the depression by a huge program of public works . . . a diminutive empire caught in the grip of those merciless economic laws which torment the far mightier empires of today. Thus trapped in an economic crisis, he turned to the second remedy of a sick society – borrowing.  Pericles decide to “borrow” [public defense funds guarded in the sacred treasury] to set in motion a big building program.

Pericles, the arch politician, insisted that [the defense funds] were in the hands of Athens to be used as it saw fit. He prevailed, and these funds were used to erect that magnificent collection of buildings on the Acropolis . . . But, in the end, Pericles turned to the third and most destructive and evil of the elements of his Athens New Deal – war.

The war with Sparta and her allies lasted for many years and ended with the downfall and humiliation of Athens and provided the tragic climax of this earliest of New Deals. Depression, caused by collapse of the heavy industries; then government doles paid for with taxes; great building and military enterprises to create work paid for with borrowed funds – in this case misused money – and finally war. Thus ended the New Deal in Athens.”

(The New Deal: An Old Racket; Forgotten Lessons: Selected Essays of John T. Flynn, Gregory P. Pavlik, editor, Foundation for Economic Education, Inc., 1996, excerpt pp. 55-56)

The American Welfare State

Shortly after the Bolshevik revolution and consolidation of power in Russia came the Great Depression and the opportunity for a charismatic American politician to introduce his own version of a planned economy, fiat money and social programs funded by deficit financing.

American Welfare State  

“My father was a true liberal as it was defined prior to World War II. He was also a highly regarded and respected liberal, in the forefront of his profession of journalism. At that time, most of those in the newspaper field were staunch supporters of the Constitution as originally adopted; that is, they believed that the role of the federal government was quite limited. And they also believed in the free enterprise system. There were few leftists in their midst.

Since then the term “liberal” has undergone a radical change in meaning, and now means almost the reverse of what it meant when my father was practicing his profession before World War II. Under the present-day meaning of the word “liberal” my father would now be called a conservative. In addition to his strong views about the superior qualities of the free enterprise system and the need for a diminished role for the federal government, he was a firm believer in high standards of morality for the family, and for the communities in which the families lived and raised their children.

In his later years he was subject to heavy criticism, much of it slanderous, but I never heard anyone questioning his integrity. In his search for the truth as a journalist, he had great respect for all obtainable facts and information required for reaching judgmental decisions.

The passage in 1913 of the Constitutional Amendment to tax income greatly increased the power of the federal government to control and regulate the economy, but the exercise of this power was quite modest until the New Deal and World War II. This power, together with the gigantic demands of the war, resulted in an enormous involvement of the federal government in the total economy of the nation.

And with it came much more sympathy by the general public and the media for socialistic and planned governmental programs. Support for these programs also prospered in colleges, universities, and religious groups. The Welfare State was beginning to get a firm foothold on our shores.”

(Forgotten Lessons: Selected Essays of John T. Flynn, Gregory P. Pavlik, editor, Foundation for Economic Education, Inc., 1996, excerpt pp. v-vi)

Prosperity Through Armaments

To underscore the following excerpts, author George Thayer states that “We live in an age of weapons. Never before in the history of mankind have weapons of war been so dominant a concern as they have been since 1945.” Thayer writes that after the second war to end all wars, the US “had given away $48.5 billion worth of arms and military supplies to 48 nations.” One of these was the Soviet Union of Josef Stalin, who Roosevelt had armed to the teeth and who immediately became the US’s postwar primary adversary.

Prosperity Through Armaments

“In the twenty-four years since 1945, there have been fifty-five wars of significant size, duration and intensity throughout the world. This means that mankind faces a new and violent conflict somewhere in the world slightly more often than once every five months, any one of which is capable of provoking a holocaust.

If one adds to this total all the coups, large-scale riots and clashes of unorganized, low-order violence, then the total of postwar cases of armed conflict that have had significant impact on the course of history would number in excess of fifteen score – more than one per month.

Today we are far along the way to losing our sense of proportion, for by any definition many of these wars have been quite large. For instance, bombing tonnage in the Korean War exceeded all the tonnage dropped by the Allies in the Pacific Theater of World War II. In the “small” six-day Sinai War of 1967, more tanks were committed to battle than by the Germans, Italians and Allies together at the crucial twelve-day battle of El Alamein in 1942. And from July 1965 to December 1967, more bomb tonnage was dropped on Vietnam than was dropped by the Allies on Europe during all of World War II.

Consider some of the political consequences that today’s arms trade have produced:

The fall of Germany’s Erhard government in 1966 can be blamed in large part on Bonn’s purchases of American military equipment which it could not afford and did not need.

The cancellation of the Skybolt missile by the United States in 1962 was one of the contributing factors that led to Prime Minister MacMillan’s resignation in 1963.

The Pakistan-India War of 1965, in which American equipment was used on both sides, produced two results adverse to United States interests: it forced Pakistan to take a more neutral position in world affairs, and it forced India to consider manufacturing nuclear weapons.

Had there been no large infusion of American weapons into the area (ostensibly as a defense against communism), the war would not have taken place.”

(The War Business: The International Trade in Armaments, George Thayer, Simon and Schuster, 1969, excerpts pp. 17-21)

Jul 4, 2020 - Economics, Equality, Pathways to Central Planning    Comments Off on Anarchy Plus a Constable

Anarchy Plus a Constable

“It is amazing how otherwise intelligent people still imagine that, in our complex modern society, public order can be maintained by having certain elementary rules of conduct appropriate to simple rural communities followed by millions of individuals.

These latter are in fact grossly unequal in economic power, and each individual, or legal person, including the billion-dollar corporation, is left free to interpret the Constitution for himself, and to hire as many lawyers as his means will allow to champion through endless litigation his particular interpretations.

Only the lush opportunities of the opening of the earth’s largest and richest area for appropriation and settlement could furnish enough to be grabbed off by almost everyone to make it possible to maintain public order under such a regime, which Thomas Carlyle once characterized as anarchy plus a constable.

I find the ideal of a classless, stateless, government-less society of workers enjoying social order and material abundance fantastic and unattainable.  It appears unattainable for the reason that social order requires government and administration by a ruling class or power-exercising class which must always be an aristocracy of management, however selected, operating through some set of mechanisms of social control, economic as well as political.

There is something vicious in the wish to impose on future generations our scheme of values. The egotistical wish to define the values of future generations is common both to liberal constitutionalists and the communist believers in the classless society of the future. What right or logical reason can we possibly have to take it for granted that our values or ideals will be acceptable to future generations or appropriate to their material situation?

Only the belief that we have received a revelation of eternal truth can rationalize such a pretentious assumption.”

(The Coming American Fascism: The Crisis of Capitalism, Lawrence Dennis, Harper & Brothers, 1936, excerpts pp. 4; 7-8)

Jul 4, 2020 - Antebellum Economics, Antebellum Realities, Economics, Historical Accuracy, Race and the South, Slavery Worldwide    Comments Off on Feudal Lords, Modern Capitalists and the Dole

Feudal Lords, Modern Capitalists and the Dole

The feudal lord of the manor mentioned below could have been European, Asian, Arab or African owners of serfs or slaves.  A North German serf in Mecklenburg belonged to and worked the land of his lord, owning little more than his clothes and cooking utensils. But he and other serfs were essential to the lord for agricultural production, as in the American South and elsewhere in the world, and thus could not be abandoned.  

Feudal Lords, Modern Capitalists and The Dole

“The feudal lord of the manor was quite as much a property owner as the millionaire under modern capitalism. He had property rights in the tools of production, and often directed the processes of production. But unlike the man of property under modern capitalism, he could never make a decision in respect of his property rights, one of the results of which, would be widespread unemployment and destitution, for, as a practical matter, he could not expel the serf from the land or deny him the use of the land and some elementary capital for the production of food, shelter and clothing.

Modern capitalism is the first important system of property rights to allow property owners to make decisions which result in large scale unemployment. The much vaunted freedom of modern capitalism is largely a matter of the freedom of property owners from social responsibility for the consequences of their economic choices.  It is a matter of the freedom of property owners not to invest their savings if the profit incentive is not considered sufficient.

To say that it is also a matter of the freedom of the worker to abstain from work is to utter a shallow mockery of human necessity. The rich man is, in a practical sense, free to withhold his savings from investment. The poor man is never free in any but a legal sense and absurd sense to withhold his labor from the highest bidder, however low the bid, if, as the principles of sound capitalism require, so to withhold his labor is to starve.

At the present time, one of the fundamental rules of sound capitalism is being violated by the payment of the dole, which prevents a man from starving and thus enables him to withhold his labor from the highest bidder if the bid is not materially higher than the amount obtainable from the dole.”  

 (The Coming American Fascism: The Crisis of Capitalism, Lawrence Dennis, Harper & Brothers, 1936, excerpt pp. 22-23)

Apr 26, 2020 - Economics, Emancipation, Freedmen and Liberty, Northern Culture Laid Bare, Race and the North, Republican Party    Comments Off on A National Characteristic

A National Characteristic

Early in the war and with displaced black people migrating northward threatening white northerners jobs, Midwest Republicans proposed the use of federal power to insure that the freedmen would remain in the South, suggesting “that the blacks be colonized in Florida, or placed in the Indian territories of the southwest, or apprenticed on confiscate plantations, or restrained and employed in the South by the government.” Senator Doolittle below was Chair of the Senate Indian Affairs Committee 1861-1866, and carried out the hanging of 38 Sioux in 1862.  

A National Characteristic

Senator [James R.] Doolittle, leading advocate of colonization in the Senate, explained, “The question of race is a more troublesome one than the question of condition [slavery] in the truth.” In August of 1862, President Lincoln reminded a group of colored men that the broad “physical difference” between the two races is “a great disadvantage to us both, as I think your race suffer very greatly, many of them by living among us, while ours suffer from your presence.”

They were just as sure that anti-Negro prejudice was a national characteristic which would not be dispelled by universal emancipation, as some abolitionists thought it would.

A House committee, headed by Albert S. White, an Indiana Republican, endorsed emancipation and colonization, and reported that a belief in the inferiority of the Negro was “indelibly fixed upon the public mind . . . There are irreconcilable differences between the two races which separate them, as with a wall of fire . . . [The] Anglo-American never will give his consent that the Negro, no matter how free, shall be elevated to such equality.” Genuine concern for the welfare of the Negroes, as well as racial antipathy, nourished the deportation movement.

Republican colonizationists knew well that all men aspired to equality, and they truly sympathized with the condition of the Negro, free or slave. They urged – since history and the evidence on every hand indicated that white Americans would not admit black men to full equality – that emancipation be accomplished by the voluntary resettlement of the freedmen in foreign lands where they could enjoy equal rights and govern themselves. Such a course would benefit both races, they said. The whites would profit from the departure of an alien people; the blacks would escape from domination and oppression.”

(Free But Not Equal: The Midwest and the Negro During the Civil War, V. Jacque Voegeli, University of Chicago Press, 1967, excerpts pg. 23)