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The Morrill Tariff War

The Morrill Tariff War

The United States House and Senate passed on March 2, 1861, a pro-slavery amendment by the required 2/3 vote which received the endorsement of newly elected President Abraham Lincoln. This would prohibit the United States government from ever interfering with the domestic institution of African slavery in any State. The amendment was ratified by at least three States prior to Lincoln’s ill-advised attempt to reinforce and supply Fort Sumter in mid-April, after which he began raising an army which a president is forbidden to do.

The amendment, as a clear assessment of northern political feeling at the time, indicates that the ensuing war was not prosecuted by the north for emancipation. If the American South’s only interest was “preserving slavery” it need only remain in the 1789 union and join the other States in ratifying the amendment.

At the very same time in early March the northern-dominated Congress passed the oppressive Morrill Tariff Act, which imposed a 40% sales tax on imported goods shipped primarily to the Southern States. This Act protected northern commercial interests.

The only way the American South could avoid the tariff was to withdraw from political union with the north, and initially the northern press supported this. Editor Horace Greeley wrote of “erring sisters” departing the union but entitled to determine their own political future – and not “pinned to the other States with a bayonet.”

In early March 1861 the Confederate States Congress convened and passed a minor 10% tariff which would bring the world’s shipping traffic to Southern ports instead of high-tariff northern ports. This sent a veritable shock wave through the commercial north as it would bankrupt those ports and business interests.

The north’s attitude of letting the “erring sisters” enjoy their political independence changed to invasion and conquest as the only remaining path to collecting their all-important tariff.  Hence, all Southern ports from Virginia to Texas had to be brought under northern control.

As only Congress is authorized to raise and supply an army and would not convene until July, it looked the other way while State governors in the north supplied Lincoln with troops after the provocation at Fort Sumter.

 

The Choice Between War and Peace

Lincoln was without question a sharp Whig attorney who knew the intricacies of Illinois politics. On the national stage he led a conglomeration of former Whigs, anti-Catholic Know Nothings, radical abolitionists, free-soilers, Transcendentalists and tariff protectionists who valued their own interests above all. As stated in the second paragraph below he knew that his political support from this rainbow of varied interests and controlled by Radicals, would fall apart should any compromise to save the Union be embraced. He placed his party above his country.

His predecessor James Buchanan was not a supporter of secession but aware that a president waging war against a State was committing treason – Article III, Section 3 of the US Constitution. His attorney-general confirmed this. A president could not raise an army – only Congress could do this – Lincoln circumvented the Constitution with Republican governors sending him their own State troops until Congress met in July. By that time congressmen were aware that they faced arbitrary arrest for “treason” should they oppose Lincoln’s actions.

The Choice Between War and Peace

 “Lincoln’s cabinet was almost equally divided between Conservatives and Radicals. The Radicals favored an immediate attempt to resupply Fort Sumter even should this precipitate war. These men thought the new Confederacy would crumble upon the first show of force, because a small junta had caused all the trouble, and the Southern people would have no heart in a conspirators’ war.

The Conservatives believed that given peace and adequate time, the Union could be reconstituted. Would it not be better to withdraw the small garrisons from forts to so as to prevent immediate hostilities and secure the Border States to the Union? Seward knew there were no military reasons for keeping Sumter and had no doubt that it would soon be evacuated. On March 7, Lincoln told a caller that if Sumter were abandoned, he would have to leave the White House the same day.

On March 12 1861 Stephen Douglas began a debate designed to force the Radical Republicans either the accept or attack Lincoln’s peace policy as stated in his inauguration speech.

He reviewed at length the legal status of federal authority in the South. As the laws stood, the Executive could not use the army and the navy to enforce the law in the Southern States. What would be involved in the use of force? He had secured estimates from competent military authorities as to the troop requirements in the event of war. At least 285,000 men would be needed to compel submission and it would cost at least $316,000,000 to keep them in the field for a year. How could eighteen States ever pay the cost of subjugating fifteen?

The Republicans sat silent as he talked, smiling contemptuously. When he finished, Henry Wilson of Massachusetts, attacked him as the country’s outstanding alarmist. Douglas lost his temper and taunted the Republican Radicals with desiring the Union dissolved. The Republicans were unyielding, the few Northern Democrats were impotent but the galleries applauded wildly.”

(The Eve of Conflict: Stephen A. Douglas and the Needless War, George Fort Milton, Houghton, Mifflin Company, 1934, pp. 548-551)

Penalty for Not Re-enlisting

Lincoln was counting on a brief war with the South as he raised an army – without Congressional approval – to send southward. The army of General McDowell was full of 90-day volunteers and battle had to be joined (and won) before they went home with the government’s $100 in their pockets. The battle of First Manassas was a Northern debacle which cooled the alleged flag-insult at Fort Sumter and it became obvious to Lincoln’s War Department that generous enlistment bounties were necessary to keep men in blue uniforms.  Between 1861-1865 the North paid about $750,000,000 in bounties to fill its ranks. An excellent resource is William Marvel’s “Lincoln’s Mercenaries,” LSU Press, 2018.

Penalty for Not Re-Enlisting

Author Jonathan W. White’s book “Emancipation, the Union Army and the Reelection of Abraham Lincoln” (LSU Press, 2014) suggests that Secretary of War Edwin Stanton utilized intimidation tactics to ensure Lincoln’s election and use the soldier vote to help accomplish it. His assistant secretary, Charles A. Dana, admitted to using the full power of the War Department to ensure Lincoln’s electoral triumph. Stanton was also creative in his filling the ranks with blue soldiers as the unpopular war wore on.

By May 1864, the initial three-year enlistments had expired and strong measures utilized for re-enlisting the veterans. The hated draft was causing riots in northern cities, and Grant complained often of the useless soldiers he was sent — paid substitutes and draftees who often deserted at the first opportunity.

Desperate to retain the veterans, Stanton demanded additional government bounty money to entice them to stay, one-month furloughs home to show off their “Veteran Volunteer” sleeve chevrons, and commanders rewarded with promotions for re-enlistments obtained. Commanders unsuccessful in their re-enlistment efforts were denied promotion or cashiered.

The bounty money made soldiers wealthy men for the time, but naturally caused them to avoid battle in order to spend it. White estimates that only 15 percent of veteran soldiers re-enlisted, leaving 85 percent who walked away, as it had become an abolition war rather than the “save the Union” banner they had enlisted under. Additionally, they saw emancipation bringing many black freedmen north in search of employment, thus depressing wages and taking jobs from white northerners.

“In May [1864] the three-years’ service of the regiment had expired; and three hundred and seventy-five men who had not reenlisted as veterans were mustered out and made their way home as best they could. On arriving in New York, they drew up and adopted a series of resolutions. They began by rehearsing an order of Col. [Henry L.] Abbot, dated May 21, urging them to “stand by their colors, and not march to the rear to the sound of the enemy’s cannon.”

The reason for their non-re-enlistment seems to be stated in the charge against Col. Abbot:

“That he has spared no pains to place over us a military aristocracy, subjecting us to every variety of petty annoyance, to show his own power, and take away our manhood; subjecting men to inhuman and illegal punishments for appealing to him for justice; disgracing others for attempting to obtain commissions in colored regiments; . . . about May 4 ordering his heavy artillery men who had not re-enlisted, into the ditch for the remainder of their term of service, thus placing us on a level with prisoners under sentence for court-martial; and finally capping the climax by leaving us to the tender mercy of provost-marshals, turning us loose on the world, without pay, without officers, without transportation, without rations and without our colors.”

(The Military & Civil History of Connecticut, During the War of 1861-1865. W. Croffut & J. Morris. Ledyard Bill. 1869, pg. 558-559)

 

Attracting Volunteer Mercenaries

The North’s war-weariness in late 1863, despite the capture of Vicksburg and stand-off at Gettysburg, had increased after the well-publicized greed of manufacturers supplying shoddy equipment to the army, and speculators overcharging the government “for everything from spoiled food to broken-down horses . . . was everyone out to feather his own nest? Was it fair for some men to go out and put their lives on the line while others stayed home and made big profits?” Bostonian aristocrat John Murray Forbes insisted that Lincoln now frame the war as a struggle by “the People against the Aristocrats” of the South.

Attracting Volunteer Mercenaries

“In mid-October [1863], though the election campaign was on, the Lincoln administration felt obliged to call for an additional 300,000 volunteer troops for a three-year tour of duty. This time the Massachusetts quota was set at 15,126 men.  Governor [John] Andrew realized more than ever that if he was not allowed to raise the State bounty, enlistments would surely falter.

Only 6,353 volunteers enlisted and mustered between January 1 and October 17, 1863, including black regiments, according to the governor’s report to the General Court on January 8, 1864. This was a poor showing indeed, but symptomatic of the war-weariness that had crept into almost every aspect of Northern life during the fall of 1863.

Where would 15,000 more men come from? Andrew decided to call a special session of the legislature, which convened on November 11, 1863. By this time, Congress had raised the US bounty to $402 for those who had already served not less than nine months, and to $302 for new recruits. The Massachusetts legislature now offered an additional $325 for new recruits, as well as for any veteran who might reenlist for 3 years of the duration of the war.

Penalties were assessed against Massachusetts men enlisting in units sponsored by another State. Massachusetts, however, welcomed enlistees from other States. Several unsavory developments, however, came out of this increase in bounties for new enlistments. The number of bounty-jumpers increased greatly – men who would enlist, receive their bounties, and then skip town to try the same scheme in another State.

But perhaps the greatest evil was a private enlistment company, headquartered in Boston, set up to bring immigrants from Europe to serve in the Union army.  It originated in the fall of 1863 when John Murray Forbes spoke with associates about encouraging foreign immigration as a way to increase the State’s manpower quota.

Several investors were attracted by the speculative possibilities in Forbes’s plan, and organized their own company. The company made contacts with European immigrants and paid for their transportation to America in return for signing an agreement to serve in a Massachusetts regiment. After paying for the emigrants passage, the Boston company would then extract a percentage from the bounty as a profit.

Some of the foreign emigrants later claimed that Massachusetts agents had either forced them into service against their will, or deceived them with false promises and misrepresentations. The colonels in the regiments to which these men were assigned were equally unhappy. Most of the new recruits could not speak English or understand orders, and many were massacred in the Wilderness campaign only a few months later.”

(Civil War Boston: Home Front and Battlefield, Thomas O’Connor, Northeastern University Press, 1997, pg. 185-187)

 

Gibbon’s Long-Haired Barbarian

Admiral Raphael Semmes (1809- 1877) was a Naval Academy graduate, prewar lawyer and remarkable naval strategist who quite-nearly destroyed the US merchant marine with his devastating commerce raiding tactics. A frequent critic of the New England mind and character, he saw the Yankee as “ambitious, restless, scheming, energetic, and has no inconvenient moral nature to restrain him from the pursuit of his interests, be the path ever so crooked. In the development of material wealth he is unsurpassed.” Below, he describes President Jefferson Davis’ path after departing Richmond in 1865.

Gibbon’s Long-Haired Barbarian

“[President Davis] moved soon to Charlotte, in North Carolina, and in a few weeks afterward he fell into the hands of the enemy. The reader knows the rest of his history; how the enemy gloated over his captivity; how he was reviled, and insulted, by the coarse and brutal men into whose power he had fallen; how lies were invented as to the circumstances of his capture, to please and amuse the Northern multitudes, eager for his blood; and finally, how he was degraded by imprisonment, and the manacles of a felon!

His captors and he were of different races – of different blood. They had nothing in common. He was the “Cavalier,” endowed by nature with the instincts and refinement of the gentleman. They were of the race of Roundheads, to whom all such instincts and refinements were offensive.  God has created men in different moulds, as he has created the animals. It was as natural that the Yankees should hate Jefferson Davis, as that the cat should arch its back, and roughen its fur, upon the approach of the dog.

I have said that the American war had its origins in money, and that it was carried on throughout, “for a consideration.” It ended in the same way.

The “long-haired barbarian” – see Gibbon’s “Decline and Fall of the Roman Empire” – who laid his huge paw on Jefferson Davis, to make him a prisoner, was paid in money for the gallant deed.  A President of the United States had degraded his high office, by falsely charging Mr. Davis with being an accomplice in the murder of President Lincoln, and offered a reward for his apprehension; thus gratifying his malignant nature, by holding him up to the world as a common felon.”

(Memoirs of Service Afloat During the War Between the States, Raphael Semmes, LSU Press, 1996 (Original 1868) excerpt pp. 817-818)

War for Economic Greatness

Author Philip Leigh below writes that in late March 1860 as Lincoln wrestled with the question of whether to abandon Fort Sumter and preserve peace, or commit to war, he was visited by a group of New York merchants. Their desire for profits prevailed as it was “better to pay for armed conflict now than suffer prolonged economic disaster in a losing trade war.”

War for Mercantile Greatness

“[A] low tariff Southern Confederacy was an economic threat to a truncated Federal Union, particularly considering the North’s growing expectations for economic hegemony as the South lost influence in the Government. About a month before Fort Sumter surrendered, the Boston Transcript concluded on March 18, 1861 that the South did not seceded to protect slavery, but to become the North’s economic competitor:

“Alleged grievances in regard to slavery were originally the causes for the separation of the cotton States, but the mask has been thrown off, and it is apparent that the people of the seceding States are now for commercial independence . . . the merchants of New Orleans, Charleston and Savannah are possessed with the idea that New York, Boston and Philadelphia may be shorn . . . of their mercantile greatness by a revenue system verging upon free trade. If the Southern Confederation is allowed to carry out a policy by which only a nominal duty is laid upon imports, no doubt the businesses of the chief Northern cities will be seriously injured.

The difference is so great between the tariff of the Union and that of the Confederacy that the entire Northwest [present day Midwest] must find it to their advantage to purchase imported goods at New Orleans rather than New York. In addition, Northern manufacturers will suffer from the increased importations resulting from lower duties . . .”

More than a month before South Carolina started the secession trend and about two weeks after the election, outcome was known, the Boston Herald concluded on November 12, 1860: “[Should South Carolina secede] she will immediately form commercial alliances with European countries [that] . . . will help English manufacturing at the expense of New England. The first move the South would make would be to impose a heavy tax upon the manufacturers of the North, and an export tax on the cotton used by Northern manufacturers. In this way she would seek to cripple the North. The carrying trade, which is now done by American [Northern] vessels, would be transferred to British ships.”

(Causes of the Civil War, Philip Leigh, Shotwell Publishing, 2020, excerpt pp. 133-134)

Paying Tribute to the North

The prewar national dominance of the North eventually gave rise to those who thought that economic and political measures were not sufficient to put the South on a par with the North. They saw that the only way the South could rid itself of subservience to the North was to leave the Union, and do so with the Founders’ Constitution.  The South’s attempts to reduce tariffs had been increased in 1842, and in 1846 with the help of a Southern president and secretary of the treasury, forced through Congress the Walker Tariff which was so low as to be practically revenue only.  Additionally, President John Tyler’s vetoes of a national bank were upheld by Southern votes in Congress.

Northern commercial interests were determined to reclaim their government subsidies and establish national banking, with Lincoln and his new party a convenient vehicle to permanent national dominance.

Paying Tribute to the North

“There were other methods by which the profits from the cotton crop found their way into Northern pockets. Since two-thirds of the cotton crop went to England, the freight charges on its transportation across the sea amounted to a large sum.  Although the river boats of the South were generally Southern-owned and Southern- built, the South never engaged in the building or operating of ocean-going ships, principally because capital could more profitably employed in agriculture.

Most of the cotton sold was carried on coastwise ships to New York, and the great part transshipped from that place to England. All the coastwise ships and most of the ocean-going shipping was Northern-owned and consequently the freight charges went into Northern pockets. In 1843 this amounted to nearly a million dollars. In addition the insurance costs while the cotton was in transit were generally paid to Northern firms.

Not only did the cotton growers pay “tribute” to the North through their exports, but through their imports as well. The imports to the South came through Northern ports; the exports of the South amounted to two-thirds the total of the United States but her direct imports were less than one-tenth. The freight charges to New York and Boston, the tariff duties, and the cost of transportation on coastwise vessels to the South all added to the cost of merchandise.

In the hard times of the forties, Southern economists were prone to find the explanation for their distress in the “tribute” paid to the North. They came to believe that the economic progress of the North depended on this “tribute,” and epitomized their opinion in the phrase “Southern wealth and Northern profits.”

By the phrase “operation of the federal government” the South meant bounties to New England fisheries, internal improvements in the North such as harbors, roads, canals, and public buildings, tariff duties, and deposits of government funds.”

(The Old South: The Geographic, Economic, Social, Political and Cultural Expansion, Institutions and Nationalism of the Antebellum South, R.S. Cotterill, Arthur H. Clark Company, 1939, excerpts pp. 192-199)

Economic and Political Opportunity in Florida

Almost immediately after war commenced the New England Emigrant Aid Company envisioned the national benefits of “transplanting friends of the Union” in conquered States and flooding them with “Energetic, loyal, liberty-loving colonists.” The promoters avowed that their goal was “to aid in the political, industrial and social regeneration of the South.” In the case of Florida, the emigrants would settle the rich soil, open resorts for invalids, and build permanent homes for “those whose delicate constitutions cannot endure the severe weather of the North.”

In early 1864, Salmon Chase’s presidential ambitions were assisted by increased military invasions of Florida to occupy more land area and establish a new State government dominated by his political appointees. They were then expected to declare Florida’s 3 electoral votes for him come November.

Economic and Political Opportunity in Florida

“Almost from the beginning of the fratricidal conflict of 1861-1865 far-seeing politicians and interested economic groups from the North began an economic invasion of the South. First, a Confiscation Act made all property used in support of the rebellion subject to seizure by the federal government. Later in 1861, despite Abraham Lincoln’s questioning of its constitutionality, Congress passed a second Confiscation Act which made the property of all Confederate officials subject to immediate confiscation by Union officials.

The authors of the Act, by a provision that gave people supporting the Confederacy sixty days to drop their support or have their property become liable to federal confiscation, struck below the upper stratum of the Southern official family and at the roots of Southern life.

Then, in the summer of 1862, Congress passed the Direct Tax Set which, once Union troops occupied rebel territory, made Southern homes, lands, farms and plantations subject to sale or seizure by the federal government if the owners failed to pay the assessed taxes.

The avowed objectives of the laws were to “relieve” rebels of their war-producing materiel and to finance the [cost of the] war; but under them Northerners could transfer Southern wealth to themselves at the same time they emasculated the South politically.

Among the most frank in expressing their desire to exploit the South and guide Southern political development were the directors of the New England Emigrant Aid Company. This company had already experimented with sending emigrants to Kansas in an effort to flood that blood-stained territory with abolitionist settlers. Now with the war hardly more than a year old, the directors saw the South as a land of opportunity for Northerners and Northern ideals.

To them, the war presented an opportune time for settling in the South Northern workmen in numbers large enough to “support presses, schools, and churches true to their own principles and to the interests of freedom.” Land for the emigrants would be no problem since the government was sure to acquire considerable quantities through confiscation and defaulted direct taxes.

The implications of these plans were great. Should they succeed, Southerners would lose both their wealth, and their voice in the national political arena.”

(Northern Plans for the Economic Invasion of Florida, 1862-1865, Robert L. Clarke, Florida Historical Quarterly, Volume XXVIII, No. 4, April 1950, excerpt pp. 262-263)

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)

“Force of a Most Formidable Character”

In early March 1861, the new Confederate States government adopted a virtual free tariff, which quickly brought Northern merchants to their economic senses. Moses Kelly of the US Department of the Interior overheard many Southerners state that Southern ports planning direct trade with Europe “promised to deprive northern merchants of their position as middlemen and to eject northern manufacturers from the southern market in favor of European competitors.”

Further, the Philadelphia Press asked rhetorically: “If South Carolina is permitted to establish a free port with impunity, and to invite to her harbor all the ships of foreign nations, would not disaster in that event fall upon all our great northern interests?” It accurately predicted “an early reawakening of the Union sentiment in New York.” Thus true reason for total war against the South and destruction of her economic base was clearly revealed.

“Force of a Most Formidable Character”

“[By March 1861] it was evident that northern businessmen had carefully measured the consequences of disunion and the collapse of central authority and decided that they were intolerable. They had called for appeasement, but when that failed they were soon reconciled to the use of force.

Many of them concluded that property had received about as much damage from the crisis as it could, that “no new phase which the [secession] movement may take can have any further effect.”

Stocks had reached their lowest average quotations in December when the government seemed weakest, and even the approach of war failed to depress them that much again. As one commercial writer saw it, business was already suffering “all it could from a state of actual war.” And when war finally came the northern men of property united behind Lincoln to save the Union and restore the prestige of the national government.

When Yankee capitalists finally endorsed the use of military force against secessionists, they accepted the final remedy for a solemn threat to their property and future profits. Inevitably the holders of government securities looked upon disunion as a menace to their investments.

One conservative nervously declared: “So long as the right of secession is acknowledged, United States bonds must still be denounced as entirely unsafe property to hold . . .” To permit States to leave the Union at will, he warned, would mean that the “United States stocks are really worth no more than old Continental money.” With this in mind, when another government loan was offered in January, an observer shrewdly predicted: “Every dollar [New] York takes binds her capitalists to the Union, and the North.”

A basic tenet of the northern middle classes was that the value of property depended upon political stability. In effect, secessionists had made an indirect attack upon the possessions of every property holder. They had invited property-less Northerners, the revolutionary “sans culottes,” “the unwashed and unterrified,” to precipitate the country into “rough and tumble anarchy.” This “social and moral deterioration” might easily infect the lower classes with the radical idea “that a raid upon property can be justified by the plea of necessity.”

Conservatives looked apprehensively at the “immense foreign element” in northern cities and feared that revolution was “nearer our doors than we imagine.” From these recent immigrants could come the mobs to set aside all law and order and, with “revolver and stiletto,” sink the nation “into confusion and riotous chaos.” The only alternative, it was repeatedly argued, was to enforce respect for the Federal government everywhere.

[Northern] businessmen gradually became convinced that Southern independence would be almost fatal to northern commerce. American maritime power in the Caribbean and Gulf . . . would vanish . . . exclude the North from their trade . . . Even trade with the Pacific would be at the mercy of the South.

The northern monopoly in the coasting trade was a further casualty of the disunion movement. Vowing that he had “an interest and proprietorship in the Union of all these States,” [a] New Yorker concluded that secession would have to be checkmated by “force of a most formidable character.”

(And the War Came: The North and the Secession Crisis, 1860-1861 Kenneth M. Stampp, LSU Press, 1950, excerpts pp. 223-230)

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