Circa1865

With the South out of Congress since 1861 and no Southern leadership to provide a conservative and responsible voice in US government, the predictable occurred. As a soldier Grant was a butcher who sent wave after wave of new recruits to wear down the thin Southern brigades; as a politician, Orville H. Browning of Illinois described Grant as “weak, vain, ignorant, mercenary, selfish and malignant”; that he was surrounded by corrupt and unprincipled men and that his reelection would be a great calamity to the country.” Grant’s election in 1868 was achieved with a few hundred thousand freedmen votes, they herded to the polls by the Republican’s terrorist Union League.

Bernhard Thuersam, www.Circa1865.com

Union Saved for Corrupt Republican Party Hegemony

“The eight years of Grant’s administration rocked with one scandal after another. Citizens defrauded the government in the acquisition of land and in claims for [Northern veteran] pensions; contractors supplying the army and navy were often venal; and unscrupulous lawyers levied toll on ignorant and defenseless Indians.

Members of Congress were bribed and disgraced. Cabinet officers were investigated and impeached. Subordinate officials and employees were revealed in outright betrayal of public trust. Never had the Republic sunk to so low an estate of official morality.

During the 1870s there was both incompetence and dishonesty in the large customhouses; discipline and integrity among the navy-yard labor forces were at a low ebb; the Indian service had been roundly condemned by [James] Garfield; land agents connived at irregularities, and surveyors made fraudulent claims for work not performed.

The tone of the eight years of Grant’s administration was . . . set by a small number of weak and unreliable persons holding seats in Congress and in high executive office. It was during these years that the most resounding scandals occurred, not only in Washington but in many States and cities. When the mighty wandered far from the paths of rectitude, it was not surprising that some of the lesser ranks followed their example.

To a few of the scandals we turn . . . The Credit Mobilier . . . originally organized to finance railroad construction, [it] fell into the control of a group of adventurers, including a member of Congress, Oakes Ames. The corporation was awarded a lucrative but fraudulent contract for the . . . [Union Pacific Railroad and disgraced Grant’s] Vice Presidents Colfax and Wilson.

Laxness or corruption in the award of Indian trading posts had been suspected for some time under General [William] Belknap’s administration of the War Department. [Secretary of the Navy George M. Robeson levied] percentages on . . . contractors’ engagements with the navy, [and] Robeson grew rich. [Secretary of the Treasury John D. Sanborn, a protégé of Benjamin Butler, siphoned money destined for the Internal Revenue Service].

The most dramatic and perhaps the most damaging evidence of corruption during the Grant administration involved the evasion of internal revenue taxes on distilleries. Fraud had long been suspected [and persons involved] included General John A. McDonald, collector of internal revenue in St. Louis . . . other collectors, the chief clerk of the internal revenue division of the Treasury Department in Washington [and] General Orville Babcock, President Grant’s private secretary, who was subsequently indicted but who escaped conviction.”

(The Republican Era, 1869-1901, A Study in Administrative History, Leonard D. White, Macmillan Company, 1958, excerpts pp. 366-373)

Jefferson Davis was the conservative who tried vainly to save the Union in the face of Republican attempts to pit North against South, and force the South to seek a more perfect union without the North. The greatest ironies of that era was Rhode Island being the slave trading center of North America by 1750; Yankee inventor Eli Whitney making cotton planting more productive and thus perpetuating slavery; and the cotton mills of Massachusetts with their ravenous appetite for slave-produced cotton – they could have ended slavery easily.

Bernhard Thuersam, www.Circa1865.com

Unionist Davis, Radical Lincoln

“Davis appeared as a politician in 1843, and, indeed, as leader of the Democratic [Conservative] party of Mississippi. We pass over the different phases of the internal political life of the Union, in which the chasm which separated North and South was growing wider.

We can refer to only one incident and two speeches, the first of which Davis made on the occasion of his defense of the new railroad line, Mississippi-still Ocean, and in which he with glowing patriotism praised the strength of the bond which held together States of the Union; and the other of which was made by a man who, as a genuine radical, had opposed the war against Mexico as unnecessary and unconstitutional.

This other speaker said in a certain way eloquently giving momentum for the secession of the Southern States: Every people who have the will and power for it possess also the right to rise, shake off their government and establish a new one which suits them better. This is an invaluable, sacred right which will at some time free the world.

And who . . . was this man who in a certain manner pressed into the hands of the Southern States the right of throwing off a hated government? It was Abraham Lincoln, who made this speech on the 12th of February, 1858 in the House of Representatives. The one who praised and invoked the concord of the Union was, by his contemporaries, stigmatized as a traitor. The other is esteemed and venerated to-day by many, as the defender and preserver of the Union!

Only as a curious fact for the superficial critics of the whole conflict, it may here be stated that at the beginning of the settlement of the country, the Southern States had a greater aversion to slavery than the Northern States.

From 1720 to 1760, South Carolina unceasingly protested against the introduction of slave labor. Georgia forbade it by law. Virginia decidedly opposed it and levied a tax of ten dollars on each Negro. They were originally forced to adopt this [labor] system through the avarice of English merchants, and the despotism of the English ministers which had later, certainly for the South, its demoralizing features.

It was the South also which at first prohibited the slave trade, and Virginia at the head. When Jefferson Davis was born, the slave trade was in the hands of only Northern merchants who had made terms with the slave planters of South Carolina.

Other curious facts may here be introduced. A statue of Lincoln was executed, which represented him as loosing the chains of the slave. What would the beholder say if the following words he wrote after the secession of South Carolina were chiseled on the pedestal:

“Does the South really fear that a Republican administration could directly or even  indirectly interfere in its slave affairs? The South would in this matter be just as safe as in the time of Washington.”  Or, that he wrote on the 4th of May, 1861: “I have not the intention of attacking the institution of slavery; I have no legal right, and certainly no inclination to do it, etc, etc.”

(Jefferson Davis, Southern Historical Papers, R.A. Brock, Editor, Volume XIX, 1891, pp. 409-410)

Richmond citizens quietly observed Independence Day, 1865 with enemy troops occupying their city — celebrating their triumph in vanquishing the American defenders of that city.

Bernhard Thuersam, www.Circa1865.com

Occupied Richmond, July 4th 1865

“The 4th of July may be said to have been celebrated in Richmond this year. Cannon were fired at morning, noon and night. A few Chinese crackers were fired off by vagabond boys, white and black, at the corners of the streets in the early morning and in the evening, their pyrotechnic resources, I take it, being too scanty not to make it advisable to husband them to closely.

In the morning, a flag was hoisted on the Spottswood Hotel, and a short speech made from the roof of the building by [occupation forces commander] General Osgood. Somewhat later in the day a small crowd, made up mainly of Negroes and Union soldiers, with a sprinkling of citizens and children, congregated in the Capital Square. A lady was introduced to the assembly and read the Declaration of Independence, but in so low a tone and amid such noise of talking and walking about as made it quite impossible for anyone to hear her. The conclusion of her reading was marked by music from a military band which was in attendance.

Speeches were then made by a surgeon and two chaplains, and after a benediction the company dispersed. No applause was elicited by any of the speakers. The soldiers evidently were in the character of onlookers; the Negroes were doubtful if they were expected to applaud or would be allowed to do so (they were carefully removed by the soldiers detailed as police from the crowded steps near the speakers’ stand); and as for the citizens — to ask any men, Unionist or secessionist, to hear such speeches and applaud them would be asking too much.

All places of business were closed throughout the day, but the city wore no holiday aspect. That part of the rebel population which appeared in the streets were seemingly indifferent spectators of what went on around them. The boys and the Negroes, and the Union soldiers in a graver way, alone seemed to enjoy the occasion.”

(The South As It Is, 1865-1866, John Richard Dennett, Viking Press, 1967, pp. 9-10)

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

Bernhard Thuersam, www.Circa1865.com

Applauding the Death of Our Young Men

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

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

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

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

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

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

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Northern Race Riots, Conscription and Substitutes 

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

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

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

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

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

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

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

The US Country-Splitting Business

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Vandals and Goths at Chapel Hill

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

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

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

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

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Northern Vandals Liberate Wilmington Furniture

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Vandals Pickaxe the Pews Again

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

The Anticipated Profits of Next Year’s Pay Checks

“July 3, 1930

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

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

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

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

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

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

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

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

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

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

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