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Profiteering in Arkansas

With Lincoln’s approval, former Illinois Congressman William Kellogg advanced a cotton-trading scheme at Northern occupied Helena, Arkansas, which would reap millions for himself and provide slave-produced cotton for hungry Northern mills. Though Secretary of the Treasury Salmon Chase opposed the idea, Kellogg was later appointed chief justice of the Nebraska Territory in early 1865 for his patriotic efforts.

Bernhard Thuersam, www.Circa1865.org

 

Profiteering in Arkansas

“Upon occupying Helena, Arkansas, in mid-July 1862, Union General Samuel Curtis complained that his camp was “infested with Jews, secessionists and spies.” By issuing orders that restricted trade to a few people he could control under military law as sutlers, Curtis adopted a policy that made him vulnerable to charges of improper monopolization.

Shortly, a steady stream of rumored abuses percolated up to Chicago and the department headquarters for Curtis’s army at St. Louis. Illinois Senator Orville Browning’s diary records Chicago rumors that Curtis deposited $150,000 with a Chicago financier less than three months after occupying Helena. By October 1862, [an] officer said, Curtis had already seized several million dollars worth of [cotton] and “converted it to his own use.”

Later, Curtis wrote Lincoln directly to explain that the complaints originated out of envy from unsavory characters who were unworthy of trade privileges. Nonetheless, within a few months, the general was transferred to St. Louis to become the new department commander, and rumors of his possible fraud trailed along.

An investigating Treasury agent concluded that Helena’s trade “diverted soldiers to become agents and brokers of cotton buying [and had] thrown thousands of dollars into the hands of our enemies.” Corruption flourished at Helena, where the army had little to do during twelve months of idle occupation before invading central Arkansas in late summer of 1863.

Federal soldiers even purchased cotton from slaves with counterfeit Confederate money.

Lincoln’s military governor of Arkansas complained late in 1862 that the idle troops at Helena were principally engaged in profiting from cotton trade. They raided neighboring plantations to confiscate whatever cotton they could get. As an afterthought, they would often destroy the plantation homestead.

Helena’s steady occupation led to deplorable sanitary conditions, particularly among the freed slaves . . . [and] disease, malnutrition, and lack of clothes and shelter took a toll on the blacks who sought refuge in the town.

Before the end of 1862, the inland navy began to get involved. [Admiral David Dixon Porter’s] crews became covetous of cotton as a prize of war . . . [and] 50 percent of a captured cargo was subject to a reward for the crew of the ship making the capture. By the end of the war, Porter had become so aggressive at stealing cotton . . . [he was dubbed] “Thief of the Mississippi.”

His sailors would seize bales and stencil “C.S.A” on them, thereby falsely representing the cotton as property of the Confederate government and therefore subject to prize law.”

(Trading With the Enemy: The Covert Economy During the American Civil War, Philip Leigh, Westholme Publishing, 2014, excerpts pp. 65-66)

The Seeds of Sectionalism and War

Both Jefferson and Hamilton recognized that sectionalism had been a part of American politics since colonial days, and the emerging West was adding a third section to the political landscape. The political problem facing Federalists and Republicans was “how to win the allegiance of the absconding swindlers, murderers, fugitive slaves, bankrupts, brigands and failures” who settled the wild areas of the West. And certainly those Westerners would give their political allegiance to whomsoever got them what they wanted. Therein lay the seeds of future war.

Bernhard Thuersam, www.Circa1865.org

 

The Seeds of Sectionalism and War

“[Jefferson] saw that factions were forming in the United States, and the political parties were emerging. This was something the Founding Fathers had not envisioned when they wrote and agreed upon the Constitution. But it was clear enough to Jefferson that, on one side, there was a Federalist Party, led by Hamilton.

This party, he felt, had made a virtual prisoner of Washington . . . and was hiding behind his prestige to effect its nefarious scheme of converting the United States into a monarchy for the specific benefit of Northern financiers. Hamilton, Jefferson somewhat wildly wrote, “was not only a monarchist, but for a monarchy bottomed on corruption.”

Jefferson saw the Federalists as aristocrats who were the enemies of natural law and the rights of man. They interpreted the Constitution to mean the Federal government could seize any rights not specifically denied it, in order to destroy liberty. They were hand in hand with the financiers of Great Britain, and their opposition to slavery was not humanitarian, but just a hypocritical way of seeking to undermine the economy, and hence the power, of the agricultural Southern States.

On the other side, in Jefferson’s view, there ought to be the “anti-Federalist” party, which would stand for strict construction and the rights of States in order to safeguard the rights of man. As he saw them, the anti-Federalists were those who feared the creation of a national bank as another Federalist plot to destroy these rights; they were the true revolutionaries, whereas the Federalists represented the forces of reaction.

As revolutionaries, the republicans were therefore the enemies of monarchical Great Britain and the friends of revolutionary France. If they believed in slavery, it was because – well, of course nobody could really believe in slavery; the South was at heart republican and of course someday slavery would be abolished, but not right now. It was not the time to raise that question: the times now demanded opposition to the anti-revolutionary Federalists.

The anti-Federalists should form a party.”

There was meanwhile a nation to govern – one whose destiny lay clearly in the West. Here, between the Appalachians and the Mississippi, were two-hundred thousand American settlers whose political opinions could be decisive. Both saw opportunities to speculate in western lands [but] both feared that the balance of political power might shift from the East Coast to these broad western lands with the swift growth of population there. It was a possibility that occurred to western politicians as well.”

(Eminent Domain: the Louisiana Purchase and the Making of America, John Keats, Charterhouse, 1973, excerpts pp. 242-244; 247-248)

 

Bounties Fill Lincoln’s Armies with Patriots

In mid-1862 volunteering in the North had all but stopped after the carnage and high casualty numbers to date, though Lincoln desperately needed more troops to continue his war. He threatened conscription as a whip to encourage governors to fill the “troop quotas” he demanded, and the governors rightly feared retaliation from their constituents who had little interest in the war. Bounties were used to buy the services of paupers, indigents, immigrants and recently-released criminals to fill the ranks and keep Northern working men at home. Massachusetts Governor John Andrew found a workable solution in sending State agents to the occupied South to enlist captured black men who would be counted toward his State quota – and approved by Lincoln.

Bernhard Thuersam, www.Circa1865.org

 

Bounties Fill Lincoln’s Armies with Patriots

“After the first flush of patriotism had passed, one of the strong inducements to enlistment was a financial one – a bounty, and, at a later date, the advance of the first month’s pay. During the Civil War, bounties came from three sources – the federal government, local governmental units, and private subscription. (In Ohio there was no bounty offered directly from State funds.)

The federal government, at the beginning of hostilities, offered a bounty of $100, payable upon honorable discharge . . . [but] by action of Congress in July 1862, one-fourth of this sum was to be paid upon muster and the balance at the expiration of the term of enlistment.

By later acts of Congress the bounty was increased to as much as $400 in some cases, payable in installments at certain periods during the soldier’s service as well as upon his being mustered in and mustered out. By 1863, the volunteer could expect $75 from the federal government at the time he was mustered in, $13 of the amount being his first month’s pay.

To the federal bounty there came to be added bounties provided by local governmental units and private subscription. Indeed, as [Provost Marshal General James Fry] wrote, the federal bounty paled into “comparative insignificance” when compared with the “exorbitant bounties paid in advance by local authorities.”

These, he believed, were the most mischievous in encouraging desertion, bounty-jumping, and other evils connected with the system. So great was the stigma of the draft that local authorities were highly competitive in the amounts offered to volunteers. Furthermore, they paid all the sum in advance. The primary objective of these payments, as General Fry put it, came to be “to obtain men to fill quotas.”

Localities began by offering moderate bounties. In 1862 the average local bounty was estimated at $25; in 1863 it advanced to $100; in 1864 it bounded to $400; and in 1865 the average bounty was $500, although in some localities it was as high as $800. The Hamilton County Board of Commissioners levied a tax of two mills in 1863 to take care of local bounty payments. On a tax duplicate of $128,432,065 this levy yielded about $256,864. The next year the city of Cincinnati began to borrow in order to offer city bounty payments, and during that year 1,811 volunteers were paid bounties of $100 each.

After the war the adjutant-general of Ohio estimated that $54,457,575. Had been paid in local bounties throughout the State, of which amount cities and counties had paid about $14,000,000 and private subscribers, $40,457,575.

The private subscriptions represented ward or township bounties, offered to encourage volunteering to avoid the draft in a city ward or township. [Political] Ward military committees were very active in securing private contributions for this purpose, as well as in securing volunteers.”

(Relief for Soldiers’ Families, Joseph E. Holliday; Ohio History, Vol. 71, Number 2, July 1962, James H. Rodabaugh, editor, excerpts pp. 98-100)

The True Result of Appomattox

Lincoln’s war administration and deficit financing ushered in the modern American state which remains in existence today. The various Bureaus, Departments and revolutionary measures created for the purpose of increasing federal power were all linked to his total war-effort, including the restructuring of currency and banking. Author Bruce D. Porter (War and the Rise of the State, Free Press, 2002) wrote that “Appomattox thus represented not just the defeat of the South, but the defeat of the whole Southern economic and political system, and the triumph of a state-fostered industrial and financial complex in the North.”

Bernhard Thuersam, www.Circa1865.org

 

The True Result of Appomattox

“[in Herman Melville’s postwar] poems he recognized the tremendous costs, especially through the loss of freedom and the end of the founders’ dream for America as a result of the North’s victory. He viewed the construction of the new iron dome on the Capitol in Washington, DC, which replaced the wooden one, as a symbol of America’s future.

Bruce Porter’s well-documented study [of the war] relates some of the economic costs of the Civil War:

In connection with the war the Lincoln administration attempted to intervene in areas of the national life that the federal government had never touched before . . . Prior to 1861, the national government had been a minor purchaser in the American economy. During the war, it became the largest single purchaser in the country, a catalyst of rapid growth in key industries such as iron, textiles, shoe manufacturing, and meat packing . . .

The Civil War spawned a revolution in taxation that permanently altered the structure of American federalism and the relationship of the central government to the national economy. Prior to the war, over 80 percent of federal revenue had come from customs duties, but despite several upward revisions of the tariffs during the war, those could provide only a fraction of what was needed to sustain the union armies.

On August 5, 1861, the first income tax in US history came into effect, followed by the Internal Revenue Act of 1862, which levied a whole series of new taxes: stamp taxes, excise taxes, luxury taxes, gross receipt taxes, and inheritance tax, and value-added taxes on manufactured goods. The latter Act created the Bureau of Internal Revenue, perhaps the single most effective vehicle of federal power ever created . . .

Neither taxes nor paper dollars, however, came close to covering the enormous costs of the war. Dire fiscal straits forced the federal government to borrow over 80 percent of its cost, or more than $2.6 billion. [The] Lincoln administration created a captive source of credit by granting a monopoly on issuance of the new national currency to banks that agreed to purchase large quantities of federal bonds . . . [and] agree to accept federal regulation and federal charters. Thus, almost overnight, a national banking system came into being.

[Author] Eric Foner writes that the fiscal measures represented in their “unprecedented expansion of federal power . . . what might be called the birth of the modern American state . . .”

(The Costs of War, America’s Pyrrhic Victories, John V. Denson, Transaction Publishers, 1999, excerpts pp. 28-29)

New England’s Perpetuation of Slavery

There is little question that the origins of the American Revolution, and the later War Between the States, are rooted in New England’s illicit trade in slaves and molasses, and England’s efforts to stop the maritime competition with the mother country. By 1750, Rhode Island had become the center of the transatlantic slave trade, surpassing Liverpool for the dubious honor.

The author below writes: “nine-tenths of the colonial merchants and skippers had become smugglers as the break with England neared. Such men as John Hancock, a prince of contraband traders, on the eve of Paul Revere’s ride had for counsel before the Admiralty Court in Boston none other than John Adams, answering for him a half-million dollar suit in penalties as a smuggler.” He went on that “One-quarter of all the signers of the Declaration of Independence were bred to commerce, to the command of ships and to contraband trade.”

Bernhard Thuersam, www.Circa1865.org

 

New England’s Perpetuation of Slavery

“In accord with the spirit of the times the British Parliament passed a series of statutes in 1633 providing, among other things, that nothing could be brought into the colonies that wasn’t carried there in British ships, “whereof the master and three-fourths of the crew are English.”

[Concerned about the rise of illicit maritime trade of New England] the shipbuilders of the Thames district met in London in the winter of 1724-1725 and formally complained to the Lords of Trade:

“In the eight years ending in 1720 we are informed that seven hundred sail of ships were built in New England, and that in years since, as may if not more; and that the New England trade, by the tender of extraordinary inducements, has drawn over so many working shipwrights that there are not enough left to carry on the work [in England].”

Linked inseparably with the venture south to the [West] Indies the colonists’ brisk trade in rum and what they were in the habit of calling “Black Ivory.” For the Indies trade was a three-cornered affair hinging on rum, slaves and molasses. Together they comprised the foundation for more ships and hence more trouble than all the politicians ashore put together.

The New Englanders had Indian slaves as early as 1637 . . . and more or less formal business developed, with traders nabbing Indians along the banks of the Kennebec River in Maine and selling them into slavery up and down the coast. It was the black ivory from Africa, however, that turned the trick in the West Indies trade and established Southern slavery on a solid and enduring footing.

The mechanics of this all-important trade worked like this: molasses was brought to New England and made into rum; the rum, highly prized among Negroes on the west coast of Africa, brought its own price among the drinkers, a price that included any of their relatives or friends who might have the bad judgment to be lying about, and the resultant human cargoes were disposed of profitably in Boston, Newport [Rhode Island] and on south.

Not all the West Indies rum was drunk by Negroes. A flourishing local trade in fur was conducted with the Indians by the extremely profitable exchange of a few bottles of cheap rum or whiskey for the entire season’s catch of its drunken owner. The tribal chiefs . . . in 1726, begged without avail to have the sale of firewater to the young braves stopped.

It is hardly surprising, then, that among the first real troublemakers of all the British efforts to raise money [to support the colonies] was a new Molasses Act, for it was molasses brought in from the French West Indies from which New England rum was made. To put teeth into the effort Parliament authorized the use of writs of assistance, a sort of search warrant covering an entire community that gave British customs officials the right to search any ship, warehouse or even private home for smuggled goods.

When the harried Board of Trade and Plantations finally decided to act, its attempt to enforce the Navigation Acts [to restrict New England’s rum and slave triangle] was the spark in the touchhole that set the guns to booming.”

(Yankee Ships, an Informal History of the American Merchant Marine, Reese Wolfe, Bobbs-Merrill Company, 1953, excerpts pp. 39; 43-44; 49-51)

Jul 14, 2018 - Antebellum Economics, Economics, New England History, Northern Culture Laid Bare, Race and the North, Sharp Yankees, Slavery Worldwide    Comments Off on Illicit Trade in Slaves and Opium

Illicit Trade in Slaves and Opium

The Fells Point shipyard of Baltimore builder William and George Gardner built many fast merchantmen during the 1830s, as well as for the slave and opium trade. One Fell’s Point free black carpenters was Fred Bailey (later Fred Douglass) who helped build the slavers Delorez, Teayer, Eagle at Price’s Shipyard, plus the Laura at Butler & Lamdin yard in the same city. In 1844, Bostonians George and John Dixwell of Augustine Heard & Co. ordered fast clippers built by the Gardner’s to carry Bombay opium to China, where it was outlawed. One of their most notorious opium clippers built for the Dixwell’s was the “Frolic,” despite an 1844 treaty forbidding American ships carrying in into China.

Bernhard Thuersam, www.Circa1865.org

 

Illicit Trade in Slaves and Opium

“Probably the most notorious slave ship ever built in the United States, the Venus, was widely discussed in the newspapers at the time. On July 4, 1838, the Venus reached completion at Fells Point . . . the Venus was neither a warship nor a merchantman, but a slave ship in disguise. Indeed, like the merchant traders of New England, Baltimore shipbuilders had a long tradition of employing ruses to conduct their craft in defiance of the law.

The Gardner’s were careful; to protect themselves by selling the slave ships they built to foreign buyers. These transactions through intermediaries, though contrived and transparent, sufficed to enable the Gardners and other Baltimore builders to construct the world’s most profitable slavers while remaining officially and legally ignorant.

As soon as the Venus was ready to be launched, [owner] Lambert Giddings [transferred] the vessel to Jose Mazorra, a notorious [Cuban] slave trader. As the Venus left Havana “with equipment for the slave trade,” we may assume that during her nineteen-day layover in Cuba carpenters were busy fitting her out with platforms in her hold and tons of iron shackles and chains.

On November 5, the Venus, still under the American flag, arrived at Lagos on the West African coast . . . and departed Lagos with a cargo of about 1,150 slaves. The American flag and papers had provided protection for the vessel until the slaves were driven aboard, whereupon the vessel was given over to an agent of Jose Mazzora who carried . . . fraudulent papers . . . disguised as a wholly different vessel.

Continued “foreign” orders for slavers during 1838 and 1839 helped the Gardners’ business survive the financial panic of 1837. [The slaver Venus] would bring international recognition to the Gardners – and ultimately an order for two opium clippers from John and George Dixwell of Augustine Heard & Co. [of Canton, China and Ipswich, Massachusetts].”

(The Voyage of the Frolic: New England Merchants and the Opium Trade, Thomas N. Layton, Stanford University Press, 1997, excerpts pp. 41-43)

 

Constitutional Convention on the Battlefield

The war of 1861-1865 seemed a violent replay of the 1800 election between Federalist John Adams and Republican Thomas Jefferson – and settling the question of whether New England or Virginia would dominate and guide the country. Author Russell Kirk observed in 1953 that “The influence of the Virginia mind upon American politics expired in the Civil War,” and that it would take 100 years for the ideas of a limited central government and free market ideas to begin a recovery.

Bernhard Thuersam, www.Circa1865.org

 

Constitutional Convention on the Battlefield

“Beginning with the modern civil-rights movement in the late 1950s, it became popular and “politically correct” to proclaim that the Civil War was fought for the purpose of abolishing slavery and therefore was a just and great war. This gave the civil-rights movement much of its momentum, but it also served to injure race relations severely, and further, to mask the immense and disastrous costs of the Civil War, which included the deaths of 620,000 soldiers.

The destruction of the South and its Jeffersonian ideals of a free market, a non-interventionist foreign policy, and a limited central government were replaced by the ideals of Hamilton, thereby completely transforming the American government created by its founders.

The Civil War was, in effect, a new constitutional convention held on the battlefield, and the original document was drastically amended by force in order to have a strong centralized federal government, which was closely allied with industry in the North.

Foreign policy would now become heavily influenced by the economic interests of big business rather than by any concern for the freedom of the individual. Domestic policies of regulation, subsidy and tariff would now benefit big business at the expense of small business and the general population.

Beginning with the end of the Civil War, the American mind and policy would become molded into the image of Hamilton rather than Jefferson.”

(The Costs of War: America’s Pyrrhic Victories, John V. Denson, editor, 1999, Transaction Publishers, 1999, excerpts pp. 27-28)

Joseph Davis Encourages Black Entrepreneurs

As a young man, Jefferson Davis learned life at the feet of his older brother Joseph Emory Davis (1784-1870) the management skills necessary to operate his own Mississippi plantation, “Hurricane.” As described below by author Hudson Strode, Jefferson “was convinced that servitude was a necessary steppingstone to the Negro’s eventual freedom and “measurable perfectibility,” and that those brought from Africa “were benefited by their contact with white civilization and Christianity.” Further, he viewed “the instrument of supplying cotton to the textile industry, which meant better employment in England and on the Continent, as well as New England, the Negro made a real contribution to world prosperity.”

Bernhard Thuersam, www.Circa1865.org

 

Joseph Davis Encourages Black Entrepreneurs

“In one special characteristic Jefferson was deemed a spiritual son of his brother: “he could hardly comprehend anyone’s differing from him in political policy after hearing reasons on which his opinion was based.”

While Jefferson reveled in Joseph’s talk and Joseph’s books in the evenings, by day he was diligent in the pursuit of agriculture. He carefully remarked his brother’s methods of slave management and agronomic techniques. In Natchez with Joseph sand James Pemberton, he had bought ten carefully selected slaves. He had put his faithful body servant in charge of them . . . Pemberton, with a shrewd understanding of both the black man’s and white man’s psychology, [and who was] indispensable.

But even more so was Joseph, who was noted throughout Mississippi for his model plantation. Strange as it may seem, the democratic plutocrat Joseph had been influenced by the utopian philosophy of the socialist Robert Owen, whose “A New View of Society” he had read before meeting him on the stagecoach in 1824.

As Joseph’s Negroes testified both before and after the War Between the States, they were mostly kindly treated. No overseer was ever given the right to punish them. The Negroes enjoyed a kind of self-rule devised by Joseph, in which the older or more settled ones acted as the jury for offenders. Though the Negroes themselves set the penalty, the master reserved the right to pardon or mitigate the severity of the sentence, which Jefferson noted he did more than often.

The slaves were encouraged to be thrifty, resourceful and inventive. They could raise their own vegetables and produce their own eggs to supplement their weekly rations. Eggs bought by the big house were paid for at market prices, though they could also be sold at any market.

When a slave could do better at some other employment than daily labor, he was allowed to do so, paying for the worth of regular field service out of his earnings. One of the slaves ran a variety shop, and sometimes he would buy the entire fruit crop from the Davis estates to sell and ship. Joseph chose his favorites from among the Negroes for advancement according to their qualities and aptitudes. Any individual talent that revealed itself was nurtured.

Jefferson was particularly impressed by a responsible and gifted Negro named Benjamin Thornton Montgomery, whose father, John, had been born a slave in Loudon County, Virginia. John had been taught to write by his master’s young son . . . John’s bent was carpentry, he became an expert in building. Then he took up civil engineering, devising his own instruments.

John passed on his knowledge of reading and writing to his son Ben Montgomery, who had acquired a little library of his own by the time Jefferson came to Hurricane. As the Montgomery boys grew up they helped Joseph with his large correspondence, business and political.”

(Jefferson Davis, American Patriot: 1808-1861, a Biography of the Years Before the Great Conflict, Hudson Strode, Harcourt, Brace and Company, 1955, excerpts pp. 111-113)

Sedition and Secession in New England

The first secession sentiment displayed in the US came from New England, a region which saw, in the early 1800s, a growing faith in monarchical Great Britain as “Federalist distrust of the youthful and growing American people increased.” In early 1811 when the bill to admit Louisiana was considered, the New England Federalists “violently resisted it.”

Josiah Quincy declared that “if this bill passes, the bonds of this Union are virtually dissolved; that the States which compose it are free from their moral obligations, and that, as it will be the right of all, so it will be the duty of some, to prepare for a separation – amicably if they can, violently if they must. The first public love of my heart in the Commonwealth of Massachusetts. There is my fireside; there are the tombs of my ancestors.”

Bernhard Thuersam, www.Circa1865.org

 

Sedition and Secession in New England

“As soon as Congress convened in November, 1808, New England opened the attack on [President Thomas] Jefferson’s retaliatory measures [in the Embargo against the British]. Senator James Hillhouse of Connecticut offered a resolution for the repeal of the obnoxious statutes. “Great Britain was not to be threatened into compliance by a rod of coercion,” he said.

[Timothy] Pickering made a speech that might have well been delivered in Parliament [Four years earlier, Pickering had plotted the secession of New England and enlisted the support of the British Minister to accompany it].

Before [Chief Justice John] Marshall had written [his friend Pickering], the Legislature of Massachusetts formally declared that the continuance of the Embargo would “endanger . . . the union of these States.” Talk of secession was steadily growing in New England. The National Government feared open rebellion.

On January 9, 1809, Jefferson signed the “Force Act,” . . . Collectors of customs were authorized to seize any vessel or wagon if they suspected the owner of an intention to evade the Embargo laws; ships could be laden only in the presence of National officials, and sailing delayed or prohibited arbitrarily.

Along the New England coasts popular wrath swept like a forest fire. Violent resolutions were passed. The Collector of Boston, Benjamin Lincoln, refused to obey the law and resigned. The Legislature of Massachusetts passed a bill denouncing the “Force Act” as unconstitutional, and declaring any officer entering a house in execution of it to be guilty of a high misdemeanor, punishable by fine and imprisonment.

The Governor of Connecticut declined the request of the Secretary of War to afford military aid and addressed the Legislature on a speech bristling with sedition. The Embargo must go, said the Federalists, or New England would appeal to arms. Riots broke out in many towns. Withdrawal from the Union was openly advocated.”

(Life of John Marshall, Albert J. Beveridge, Volume IV, Houghton Mifflin Company, 1919, excerpts pp. 13-17; 27)

Bungling and Unprincipled Self-Seeking

As the invading Northern armies moved South, huge quantities of cotton were found and Yankee cotton-hunger “was fierce and insatiable.” Union officers could make a quick fortune seizing bales and shipping them northward to New England mills, the same ones who had themselves perpetuated slavery with dependence on Southern cotton.

Bernhard Thuersam, www.Circa1865.org

 

Bungling and Unprincipled Self-Seeking

“The opening of the full length of the Mississippi by the capture of Vicksburg and Port Hudson augmented the illicit traffic from all river towns into the Confederacy. General [Stephen A.] Hurlbut, himself probably corrupt and certainly drunken, explained to his superiors [in Washington] the impossibility of imposing controls. “A perpetual flood of fraud, false-swearing, and contraband goods runs through the city,” he wrote. Even the pickets are bribed.

[US] Treasury agents were really no more culpable than Army officers, and old cotton-brokers no worse than Chicago commission-men; Yankees and foreigners could be equally unscrupulous.

Ben Butler, who had held command [at New Orleans] in 1862, believed in generous trade policies, and one recipient of his generosity was his brother, Andrew Jackson Butler. The operations of both the Butlers became highly complicated . . . When military expeditions were sent out ostensibly for the chastisement of guerillas, but with cotton also in view, and shallow-draft steamers began to scour the bayous with the same objectives, the situation became still more tangled.

[Secretary of the Treasury Salmon] Chase’s special agent, George S. Denison . . . found that a great deal of contraband material was being shipped to the Confederates in exchange for cotton, and that [Northern] military men of high rank who lent their cooperation were reaping large harvests.

It was clear, he wrote Chase, that Ben Butler “knows everything, controls everything, and should be held responsible for everything.”

On the Red River in the spring of 1864, the carnival of trade and speculation reached its height for a single campaign. General [Nathanial P.] Banks, who also had to carry the ignominy of defeat, suffered censure . . . Officer after officer, in testimony that runs for pages despite sharp questions put by Congressmen, charged that the Navy seized wagons and mules right and left, ranging far into the interior away from the Red River and branding cotton “C.S.A.” so that they with impunity then add “U.S.N.”

Porter went on to attack the Army, writing: “General Banks had come up in the steamer Black Hawk, loaded with cotton speculators, bagging, roping, champagne, and ice. The whole affair was cotton speculation . . .”

At times, in the aftermath of the Red River campaign, it seems that every participant was misrepresenting everyone else. The only definite certainty is that it was a time of bungling, lying, chicanery, corruption, and unprincipled self-seeking, all to the injury of the [Northern] war effort.”

 

(The War for the Union: the Organized War 1863-1864, Volume III, Allan Nevins, Charles Scribner’s Sons, 1971, excerpts pp. 355-361)

 

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