Browsing "Lincoln Revealed"

The War for Tariffs, Taxes and Astonishing Profits

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

Bernhard Thuersam, www.Circa1865.com

 

The War for Tariffs, Taxes and Astonishing Profits

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

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

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

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

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

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

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

May 22, 2016 - Lincoln Revealed, Lincoln's Grand Army, Lincoln's Patriots, Myth of Saving the Union, Northern Resistance to Lincoln    Comments Off on Pennsylvania Miners Resist Lincoln’s Draft

Pennsylvania Miners Resist Lincoln’s Draft

Audenreid, Pennsylvania mine owner George K. Smith was killed by his workers in early November 1863 in retaliation for providing their names to the military draft authorities. By mid-1862 Northern enlistments had dwindled and Lincoln resorted to conscription to fill the ranks.

Bernhard Thuersam, www.Circa1865.com

 

Pennsylvania Miners Resist Lincoln’s Draft

“Being a mine owner made Smith a much-despised man to begin with among the destitute miners. And the Civil War brought another factor into play that further fueled their hatred – the [Northern] government’s draft. One newspaper writer said the draft had converted the coal region into “a perfect hell.”

Ordering the immigrant German and Irish miners to serve in the Federal army and fight in a war they knew or cared little about proved too much for many of them to endure. They were being paid just fifty cents for a backbreaking day of work as it was, and when a mine boss collaborated with military authorities as Smith did, it doubled their rage.

As events turned out, Smith had written his own death certificate the moment he supplied work rolls to Union draft officials. Captain E.H. Rauch, the deputy provost marshal, injudiciously said that when he was in Beaver Meadow serving draft notices, Smith had given him a detailed map showing where each of the drafted men lived.

As early as 1862, rebellious bands of miners were becoming known and feared throughout the coal regions by encouraging desertions, interfering with recruiting, interrupting mining operations, and attacking loyalists who were devoted to the Union cause.

After the National Conscription Act was passed in August 1862, individual States were forced to draft men as a means of filling their quotas when the specified number of volunteers fell short. After the list of conscripts for each district was drawn, the men selected went immediately to their county seats and from there boarded trains for Harrisburg.

Immediately after the draft commenced, anti-draft leaders swung into action . . . From this rebellious group there emerged a secret band of terrorists known as the Buckshots, later to be known as the Molly Maguires. Mine bosses who [cooperated with Lincoln] were targeted . . . would receive an ominous notice posted on his door, complete with a picture of a coffin and two crossed pistols.

[Buckshot gangs in early 1863] boldly stopped a train with new recruits in the Schuykill County town of Tremont. Protection was promised for any new draftees who wanted to leave the train cars and return to their homes. Many took the Buckshots’ offer and skedaddled.

With the industrialized North in a wartime mode, the output of coal could not be hindered. Trouble in the minefields first caused alarm bells to sound in the State capital at Harrisburg, and the concern soon spread to Washington’s War Department and ultimately to President Abraham Lincoln.

Pennsylvania [Republican] Governor Andrew Curtin kept Washington informed of developments . . . [and] urged caution, realizing that with anti-war sentiment on the rise open conflict could have a bad effect on the rest of the country.

Alexander McClure of Chambersburg, a political ally of both Curtin and Lincoln, stated that “Lincoln was desirous of a course to see that the law was executed, or at least to appear to have been executed.”

(Coalfields’ Perfect Hell, Jim Zbick, America’s Civil War, March 1992, excerpts pp. 22-25)

 

Voodoo Economics, Circa 1864

Lincoln’s choice for the cabinet post of treasury, Salmon P. Chase, was no financial expert yet he was to advise Congress on the framing of financial bills, obtaining money from “keen-minded bankers and investors” like Jay Gould, as well as loans and paper money. The taxes collected were far smaller than expenditures and throughout the war the total amount received in loans was 2621 million dollars, against 667 million dollars obtained from taxation.

Bernhard Thuersam, www.Circa1865.com

 

Voodoo Economics Circa 1864

[Diary Entry] July 2, 1864:

“There is discord in the Cabinet. Mr. Seward represents the moderates, while Mr. Chase, the abolitionist and the inventor of paper money, represents the Radicals. He is regarded here, rightly or wrongly, as the greatest financier in the world. It seems to me that his entire science has consisted of keeping the ship afloat by throwing the provisions overboard. It is easier to borrow than to repay, and I fear Mr. Chase is leaving the difficult task to those who will follow him.

The failure of his financial policy and the defeat of a bill on gold that he recently submitted to Congress have led Mr. Chase to hand in his resignation.”

[Diary Entry] July 5, 1864:

“A financial crisis can, from one day to the next, reduce the value of paper money to virtually nothing. Everything now hangs on the hope of taking Richmond. But because Grant moves this way and that without gaining ground, because Petersburg, a town defended by children and schoolmasters, continues to stand firm against a hundred thousand men, and because the Confederates, far from giving in, are threatening Maryland with an invasion which is forcing the President to call up the militia and because, in a word, nobody sees an end to the war, public confidence is growing weaker.

The government itself, obliged to pay interest on the public debt in gold, is requiring that all customs duties be paid in gold. Nothing depreciates the currency so much as this self-distrust manifested in the Treasury. Until now the “greenbacks” have had more value in actual trading than that indicated by the rates quoted for them on the official gold market. But if ever the small businessmen should refuse to take them and if ever they should cease to circulate freely among the people, the poor Mr. [William P.] Fessenden (who has just succeeded Mr. Chase) will have to take over the direction of the Treasury only to associate his name with the impending national bankruptcy.

Let us return to Mr. Chase. He had a single obsession: to strangle speculation and force down the price of gold. He thought that to do this he needed only to decree an increase in the value of paper money, and that economic interests could be manipulated so easily as the parts of a machine. Thus he proposed a law prohibiting overdraft operations, speculative transactions which result in a paper loss or gain on balance. Judge for yourselves whether the waving of the Treasurer’s wand has had the magical effect he expected it to have.

By the very next day the speculators had taken fright and activity was concentrated in a small number of hands; now it is continued in secret, without competition, and this quasi-monopoly has immediately raised the price of gold by 40 percent. Congress wanted the bill withdrawn. Mr. Chase insisted that it be acted upon, and it was himself who had to withdraw.

If the moment of crisis ever comes when paper money is forced into the hands of only a few holders, the public will think only of getting rid of it, and America will offer to the world in a twofold sense the spectacle of “hideous bankruptcy.”

(A Frenchman in Lincoln’s America, Ernest Duvergier de Hauranne, Donnelly & Sons, 1974, pp. 77-88)

Vote for Abraham Lincoln!

Assistant Secretary of War Charles A. Dana, testified after the war that the whole power of the war department was used to secure Lincoln’s reelection in 1864. It was essential to obtain the soldier vote and politically-connected Northern officers helped distribute Republican ballots to their commands while Democrat ballots were lost. In cities Republican newspapers spread fear among voters should Democrat George B. McClellan be elected.

Bernhard Thuersam, www.Circa1865.com

 

Vote for Abraham Lincoln!

[Diary entry] Chicago, November 5, 1864:

“It was one of those amazing [newspaper] appeals to the voters that is half circus poster and half sermon . . . the sort of thing that shows how the Americans excel in catering to the lowest levels of public taste.

It carried this portentous title in large black type: “THE TRUTH!” There followed a long list of the dire consequences that will be sure to follow the election of [George B.] McClellan.

“Twenty million people under the heel of 300,000 slave-owners!” – “A Confederacy of the Northwest!” – “A Democratic insurrection (see the threats in the World and the Chicago Times)!” – “McClellan leading the revolt (see the speeches at the Chicago Convention)!” –“The theatre of war shifted from Atlanta and Richmond to New York, Cincinnati, Philadelphia and Chicago (see the Richmond papers supporting the Copperheads)!” – “Barricades; civil war” — “Our streets drenched with blood – our countryside laid waste – Our country’s credit ruined – Gold at 2,000 and the price of necessities in proportion (see the history of the French Revolution and the Reign of Terror in Paris)!”

Do you doubt any of this? Here is a table comparing “Republican Prices,” Democratic Prices,” McClellan Prices (those that would result from his compromise with Jefferson Davis – that is, guaranteeing the Rebel debt and paying the Southern States for their war costs,” – and finally, “Rebel Prices” such as will be seen “if [August] Belmont succeeds in raising a Democratic insurrection.”

But if, on the contrary, you want the Union’s flag to “float gloriously from the Great Lakes to the Gulf, from the Atlantic to the Pacific, over a hundred free States without a single despot, over fifty million — soon to be a hundred million — people without a single slave, then sweep the country clean, once and for all, of the party that is so greedy . . . this gang of slave-merchants and perpetrators of rebellion, debts and taxes that calls itself the Democratic party! . . . Vote for Abraham Lincoln!”

One must distrust all such accounts of triumphal demonstrations, of “gigantic mass-meetings,” that fill the newspapers of the two parties at this time. People lie as shamelessly in America as in Europe, with the sole difference that since here everyone has the right to lie, no one has the privilege of being believed.”

(A Frenchman in Lincoln’s America, Ernest Duvergier de Huaranne, Donnelly & Sons, 1975, pp. 3-7)

Reconstruction, the Most Shameful Period of Our History

The following is an excerpt from an 1892 address by Lt. Col. Alfred Moore Waddell to the Alumni Association of the University of North Carolina. He served as a United States Congress 1871-1879.

Bernhard Thuersam, www.Circa1865.com

 

Reconstruction, the Most Shameful Period of Our History

“[Reconstruction] constitutes the one indelible and appalling disgrace of the American people — the one chapter of their history which contains no redeeming feature to relieve it from the endless execration of the civilized world.

A distinguished orator from a Northern State declared in Congress in 1872 that one-third of the boundaries of this Republic had been filled “with all the curses and calamities ever recorded in the annals of the worst governments known on the pages of history,” and attacking the [radical Republican] authors of these calamities, he exclaimed,

“From turret to foundation you tore down the governments of eleven States. You left not one stone upon another. You rent all their local laws and machinery into fragments, and trampled upon their ruins. Not a vestige of their former construction remained.”

And again he said:

“A more sweeping and universal exclusion from all the benefits, rights, trusts, honors, enjoyments, liberties, and control of government was never enacted against a whole people, without respect to age or sex, in the annals of the human race. The disgraceful disabilities imposed against the Jews for nearly eighteen hundred years by the blind and bigoted nations of the earth were never more complete or appalling.”

Those old enough to remember that most shameful period of our history will readily recall the degradation, the crimes against civilization, and the terrorism which then prevailed, and how, amidst the general dismay, the faint-hearted stood helpless and silent before the arbitrary and reckless power exercised over them.”

(The Life and Character of William L. Saunders, address to the Alumni Association of the University of North Carolina, Tuesday, May 31, 1892, Col. Alfred Moore Waddell of Wilmington)

“The Argument is Exhausted . . .”

Those in South Carolina with Unionist views in late 1860 realized that the revolutionary Republicans of the North would agree to no compromise, and a secession convention received wide support among them. This encouragement for South Carolina’s independent action was exemplified by Charlestonian Richard Yeadon stating on November 15 that he had been “amongst those rather noted for their devotion to the Union,” but that “he worshipped at that shrine no longer.”

Bernhard Thuersam, www.Circa1865.com

 

“The Argument is Exhausted . . .”

“In the December 6 election of delegates to the secession convention voting in most places was light, a fact that has sometimes been interpreted as indicating a strong reaction from the secession enthusiasm so manifest at the time of the passage of the convention bill. Actually the light vote must be explained by the absence, in most places, of a contest.

When the secession convention met December 17, South Carolina was confident that her action would soon be followed by other States. Governor Gist, in his message to the legislature at the end of November, had stated that there was not the least doubt that Georgia, Alabama, Mississippi, Florida, Texas and Arkansas would immediately follow, and eventually all the South. Several days before the convention assembled, John A. Elmore and Charles E. Hooker, commissioners from Alabama and Mississippi respectively, arrived in Columbia. They interviewed practically every member of the legislature and the assembling convention, and positively guaranteed secession in their States.

Early in December a caucus of twenty-six Southern congressmen from eight States met and unanimously decided that immediate action by South Carolina was desirable. Soon thereafter the very encouraging address of the Southern congressmen to their constituents appeared:

“The argument is exhausted. All hope of relief in the Union through the agency of committees, Congressional legislation, or constitutional amendment, is extinguished, and we trust the South will not be deceived by appearances or the pretense of new guarantees. In our judgment the Republicans are resolute in the purpose to grant nothing that will or ought to satisfy the South. We are satisfied the honor, safety, and independence of the Southern People require the organization of a Southern Confederacy – a result to be obtained only by separate State secession.”

Assembling at the Baptist church in Columbia December 17, the convention called D.F. Jamison, delegate from Barnwell. If elections meant anything, he said, the State should secede as quickly as possible. The greatest honor of his life, he said, would be to sign as chairman of the convention an ordinance of secession.”

(South Carolina Goes to War, 1860-1865, Charles Edward Cauthen, UNC Press, 1950, pp. 63-68)

Virginia Seeks Peace, Radicals Seek War

No initiatives for peaceful compromise, nor peaceful and practical solution to African slavery were forthcoming from either Abraham Lincoln or the Republican party. Their policy since Lincoln’s election was steadfast resistance to any measures that would resolve the sectional differences. Congress was by February 1861 dominated by Northern politicians after the departure of several Southern States and had free reign over legislation which would have averted war between Americans.

Bernhard Thuersam, www.Circa1865.com

 

Virginia Seeks Peace, Radicals Seek War

“[T]he Old Dominion, true to her traditional policy of taking the initiative in times of crisis, assumed the role of peacemaker. The legislature passed joint resolutions on January 19 calling for a peace convention to be held in Washington. An invitation was extended to the other States to appoint commissioners to meet in Washington on February 4 “to consider and, if practical, agree upon some suitable adjustment.” The opinion was expressed that the Crittenden Compromise, then pending in the Senate, would with some modification serve as a basis for adjustment.

These resolutions provided for the appointment of [former President] John Tyler as commissioner to the President of the United States and Judge John Robertson commissioner to the seceded States. They were instructed respectively to request the President . . . and the authorities of the seceded States to abstain, pending the action of the proposed peace convention, from “all acts calculated to produce a collision of arms between the States and the Government of the United States.”

Congress, however, paid no attention to the Virginia resolutions. In neither House were they printed or referred to a committee. They were soon allowed to lie on a table unnoticed.

Tyler left Washington on January 29 with the expectation of returning for the Peace Convention . . . On the day before leaving, he sent another letter to President Buchanan [which] expressed appreciation for the courtesies that had been shown him and pleasure of hearing the President’s message read in the Senate. He spoke of a rumor to the effect that at Fortress Monroe the cannon had been put on the land side and pointed inland.

His comment on this report was “that when Virginia is making every possible effort to redeem and save the Union, it is seemingly ungenerous to have cannon leveled at her bosom.” To this letter Buchanan sent a very courteous reply, stating that he would inquire into the rumors with reference to Fortress Monroe.”

(John Tyler, Champion of the Old South, Oliver Perry Chitwood, American Historical Association, 1939, pp. 436-438)

Lincoln’s Desperate Search for Troops

By June 1862 Lincoln found enlistments near nonexistent, and it was time to find new sources of recruits as Northern men resisted war service.  Bounty money was offered to help solve this, and the Homestead Act had the dark purpose of attracting foreign-born troops promised bounties and public land to subjugate Americans seeking political self-determination.

Bernhard Thuersam, www.Circa1865.com

 

Lincoln’s Desperate Search for Troops

“The summer of 1862 brought more gloom to the Union cause. Stonewall Jackson’s heroics in the Shenandoah Valley were followed by McClellan’s withdrawal from his lines before Richmond . . . and the North’s setbacks in the field weighed heavily on the secretary of state. [Seward] had [earlier] watched the Army of the Potomac embark at Alexandria; he had considered it united and unbeatable.

In June of 1862 following the collapse of McClellan’s Peninsular Campaign, Lincoln had sent Seward to New York to stimulate recruiting. The secretary carried with him a confidential letter, explaining the danger and noting that the capital itself was once again in danger under the threat from the rebels. Seward, in New York City, contemplated issuing a new call form the president for volunteers.

On reflection, however, he concluded that for Lincoln to initiate the call would have overtones of panic. Instead he prevailed on most of the Northern governors to request that Lincoln issue a new call for volunteers. The upshot was that Lincoln, seemingly in response to appeals from the Northern governors, was able to issue a proclamation calling for an additional three hundred thousand men.

Seward continued his proselytizing on his return to Washington. He persuaded Secretary of War Stanton to offer new recruits an immediate bounty of twenty-five dollars when their regiments were mustered into service.

Congress had just enacted the Homestead Act, providing that any citizen or alien could acquire title to 160 acres of public land by residing on and cultivating the land for a period of five years. This was just the sort of stimulus to immigration that Seward would have favored under any conditions, but now it included a vital military dimension as well.

He sent copies of the legislation to US envoys with the covering memorandum calling the Homestead Act “one of the most important steps ever taken by any government toward a practical recognition of the universal brotherhood of nations.”

The resulting publicity assured a continuing flow of military manpower to the North from Ireland and northern Europe. John Bigelow, the US consul in Paris, would write that Seward’s circular was important for “the light I throws on the mysterious repletion of our army during the four years of war, while it was . . . being so fearfully depleted by firearms, disease and desertion.”

In addition to his military problems, Lincoln had to deal with the touchy question of war aims. Publicly he continued to argue against general emancipation, telling Horace Greeley in his famous letter of August 1862 that if he could save the Union without freeing a single slave he would do it.

Indeed, Lincoln had no authority to confiscate “property” in the North, and no ability to enforce any Federal edict in territory controlled by the Confederacy. [But as] commander in chief, Lincoln argued that he could surely seize slaves belonging to the enemy just as he could capture their railroads.

[Seward thought issuing the] proclamation following a string of defeats on the battlefield . . . would hint of desperation – “the Government stretching forth its hands to Ethiopia, instead of Ethiopia stretching forth her hands to the Government.” He feared a slave uprising would turn the war for the Union into a class war . . . and that emancipation would destroy the South’s economy, raising the specter of intervention boy Britain or France to protect its supply of raw cotton.”

(William Henry Seward, Lincoln’s Right Hand, John M. Taylor, Harper Collins, 1991, pp. 200-202)

Lincoln’s Cry of Military Necessity

The population and vast resources of the Northern States in 1861 made the claim of “military necessity” by Lincoln fall on many deaf ears. By late 1862 the military situation was critical and Lincoln withheld Northern casualty numbers at Fredericksburg from the public. Lincoln’s emancipation proclamation — patterned after that of Lord Dunmore in 1775 and Vice Admiral Sir Alexander Cochrane in 1814 – was to encourage insurrection and race war behind Southern lines, and put black men in blue uniforms as white Northern soldiers resisted enlistment.

Bernhard Thuersam, www.Circa1865.com

 

Lincoln’s Cry of Military Necessity

“On January 1, 1863, another proclamation was issued by the President of the United States declaring the emancipation [of slaves] to be absolute within the Confederate States, with the exception of a few districts. The closing words of the proclamation were these:

“And upon this act, sincerely believed to be an act of justice, warranted by the Constitution upon military necessity, I invoke the considerate judgment of mankind and the gracious favor of Almighty God.”

Let us test the existence of the military necessity here spoken of by a few facts.

The white male population of the Northern States was then 13,690,364. The white male population of the Confederate States was 5,449,463. The number of troops which the United States had called to the field exceeded one million men. The number of troops which the Confederate government had then in the field was less than four hundred thousand men.

The United States government had a navy which was only third in rank in the world. The Confederate government had a navy which at the time consisted of a single small ship on the ocean. The people of the United States had a commerce afloat all over the world. The people of the Confederate States had not a single port open to commerce.

The people of the United States were the rivals of the greatest nations of the world in all kinds of manufactures. The people of the Confederate States had few manufactures, and those were of articles of inferior importance.

The government of the United States possessed the treasury of a union of eighty years with its vast resources. The Confederate States had to create a treasury by the development of financial resources. The ambassadors and representatives of the former were welcomed at every court in the world. The representatives of the latter were not recognized anywhere.

Thus the consummation of the original antislavery purposes was verbally reached; even that achievement was attended with disunion, bloodshed, and war.

It is thus seen what the United States government did, and our view of this subject would not be complete if we should omit to present their solemn declarations of that which they intended to do. In his proclamation of April 15, 1861, calling for seventy-five thousand men, the President of the United States government said:

“In any event, the utmost care will be observed, consistently with the objects aforesaid, to avoid any devastation, and destruction or interference with property, or any disturbance of peaceful citizens in any part of the country.”

On July 22, 1861, Congress passed a resolution relative to the war, from which the following is an extract:

“That this war is not waged on our part in any spirit of oppression, or for any purpose of conquest or subjugation, or purpose of overthrowing or interfering with the rights or established institutions of those [Confederate] States; but to defend and maintain the supremacy of the Constitution, and to preserve the Union with all the dignity, equality, and rights of the several States unimpaired; and that, as soon as these objects are accomplished, the war ought to cease.”

(The Rise and Fall of the Confederate Government, Jefferson Davis, Volume II, D. Appleton & Company, 1881, pp. 187-189)

 

 

What Lincoln Accomplished

What Lincoln Accomplished

“The world claims now, and rightly, that Lincoln made the United States of America a “government of the people, by the people and for the people.” Lincoln found the United States of America a government of the States, by the States and for the States. He changed it by force of a four-year war into a nation.

Up to 1861, the Federal government was a republic of sovereign States of such wisdom and power as to win the respect and love of all true lovers of political liberty, but too wise and not powerful enough to coerce sovereign States.

Now, since 1861, we are a nation with sovereign States reduced to provinces, State rights gone (for what rights have they who dare not strike for them?); a nation, admired still by the world, but feared and mistrusted as a nation boastful and overbearing, ready and willing to regulate, if not to rule, the world like old Rome. O what a fall was there, my countrymen!”

(What Lincoln Accomplished, Berkeley Minor, Charlottesville, VA, Confederate Veteran, September 1926, page 324)