Circa1865

Those in attendance at Lincoln’s November 1863 short address after Edward Everett’s long speech were disappointed and Lincoln himself described his remarks as a “wet blanket.” After his assassination, presumably by Radical Republicans who wanted him out of the way, Lincoln’s apotheosis began.

Bernhard Thuersam, www.circa1865.org

Lincoln’s Revised Gettysburg Address

“General Donn Piatt, who traveled with Lincoln during his campaign and knew Lincoln perhaps as well as any man: “When a leader dies all good men go to lying about him. Abraham Lincoln has almost disappeared from human knowledge. I hear of him, I read of him in eulogies and biographies, but fail to recognize the man I knew in life . . . Lincoln faced and lived through the awful responsibility of war with a courage that came from indifference.”

Ward Lamon, intimate friend of Lincoln and his United States Marshal for the District of Columbia, and Colonel in the Secret Service; Historian Shepherd of Baltimore; W.H. Cunningham of the Montgomery (Missouri) Star, who sat right behind Lincoln at Gettysburg, all agreed and publicly stated that the speech published was not the one delivered by Lincoln . . .

[B]oth Edward Everett and [Secretary of State William] Seward expressed their disappointment and there was no applause; that Lincoln said: “Lamon, that speech was like a wet blanket on the audience. I am distressed by it.”

These gentlemen who heard the speech all say that the speech delivered was not the one which has been so extensively printed. Even [Lincoln secretary John] Nicolay says: “It was revised.”

William H. Herndon, under whom Lincoln began his law practice and longtime friend, wrote one of the first biographies of Lincoln, “Story of a Great Life,” but because of its frankness in unfolding the life of Lincoln it was bought up and suppressed. It was republished some years later, much modified . . . Lamon, in his “Life of Lincoln,” said:

“The ceremony of Mr. Lincoln’s apotheosis was planned and executed after his death by men who were unfriendly to him while he lived. Men who had exhausted the resources of their skill and ingenuity in venomous distractions of the living Lincoln were first after his death to undertake the task of guarding his memory, not as a human being, but as a god. Among those participating in the apotheosis Lamon names Seward, Edwin Stanton, Thad Stevens and Charles Sumner.”

(Two Presidents: Abraham Lincoln, Jefferson Davis, The Naylor Company, 1973, pp. 78-79)

President John Tyler’s son Lyon Gardiner Tyler was incensed in 1917 by a New York Times editorial which compared Southern planters to Hohenzollern autocrats plaguing the world. In 1928, Tyler was provoked again when the Virginia legislature adjourned on Lincoln’s birthday and declared publicly that Lincoln did not merit the honor. Time magazine fired back that President Tyler was a dwarf in comparison to the rail splitter, and Lyon published a book in 1929 defending his distinguished father – who had met Thomas Jefferson as a boy.

Bernhard Thuersam, www.circa1865.org

Lincoln, Grant and Beast Butler

“The reader of [Dr. Tyler’s] book will also have called to his attention the fact that in the recent World War this country had its flag fired upon time and time again and its citizens killed on the high seas without resorting to war, and Lincoln knew that the capturing of a fort guarding and controlling the most important city of South Carolina meant merely protection for that city and not an attack on the North.

It could be likewise been shown here that just a matter of weeks before the ballyhoo about “firing on the flag” at Sumter had been set to work to enrage the North, the flag had been fired upon when the Star of the West was shot at and turned back, but under Buchanan’s calm rule there was practically no excitement.

As to Lincoln’s cabinet [in contrast to John Tyler’s], “the accounts teems with the insubordinate actions of Seward, Stanton and Chase, to say nothing of Welles, while Stanton and Chase reveled in insults to Lincoln.”

As to the ideas of the two men in regard to personal responsibility and family obligations . . . ”Lincoln wrote to Grant in February 1865 (the war almost over), asking that his son, aged twenty-two, who had been kept at Harvard in spite of the draft, should be put on his staff and “not in the ranks.” President Tyler had four grandsons in the Confederate army, one of whom was killed and another wounded, and two sons by his second marriage who surrendered at Appomattox, aged sixteen and seventeen.”

“When [Beast] Butler issued his notorious “Order N0. 28” at New Orleans (an order that shocked decent humanity), which Lord Palmerson, the Prime Minister of England declared in the British Parliament was “unfit to be written in the English language;” Lincoln did not revoke the order, but on the contrary promoted Butler to responsible positions and wanted him as his running mate for the vice presidency in 1864. Yet Butler is the man who, Dr. John Fiske declared, “could not have understood in the smallest degree the feelings of gentlemen.”

(John Tyler and Abraham Lincoln, Dr. Lyon G. Tyler; book review by A. H. Jennings, Confederate Veteran, June 1929, pp. 213-214)

Seldom mentioned as a direct cause of the War Between the States is the Republican party refusal to compromise with Southerners in Congress in order to save the Union. As president-elect, Lincoln is said have led the resistance to compromise and pushing the South toward secession. After its first national electoral contest in 1856, the Republican party in 1861 would destroy the Founders’ Constitution and the union of fraternal States it had created.

Bernhard Thuersam, www.circa1865.org

Republican Block Schemes of Conciliation

“Congress was in session beginning December 3 [1860]; and in a bungling, legalistic fashion it was going about the business of saving the country. Incidentally, this should be borne in mind as a sidelight of Buchanan’s policy. With Congress seeking modes of adjustment, the President would have been going counter to the national legislature if he had taken warlike measures against the South.

Panaceas and compromise solutions piled up in such quantity that each house chose its committees to centralize the discussion, sift the numerous schemes, mediate between opposing points of view, and report such solution as seemed most hopeful of success.

In the House of Representatives this function was performed by the “Committee of Thirty-three,” a special “grand committee,” one from each State, created at the suggestion of Representative [Alexander R.] Boteler of Virginia. On the one hand the committee was embarrassed by the attitude of the radical Republicans, in Congress and elsewhere, who seemed intent upon blocking schemes of conciliation . . . [and on] December 13 . . . a group of Southern members of Congress, before secession had been voted in any State, issued an address to their constituents which read as follows:

“The argument is exhausted. All hope of relief in the Union, through the agency of committees, Congressional legislation, or constitutional amendments, and we trust the South will not be deceived by appearances or the pretence of new guarantees.

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 are to be found only in a Southern Confederacy – a result to be obtained only by separate State secession – and that the sole and primary aim of each slaveholding State ought to be its speedy and absolute separation from an unnatural and hostile Union.”

(The Civil War and Reconstruction, James G. Randall, D.C. Heath and Company, 1937, pp. 200-201)

Accidental presidents like Chester Alan Arthur were the result of the war, the marriage of government and big business, the predictable Gilded Age, and rampant political corruption in the North. Conservative Southern statesmen in prewar Congresses were an impediment to the Republican revolutionaries bent on power.

Bernhard Thuersam, www.circa1865.org

Republican Political Bosses and Layers of Graft

“Chester [Alan] Arthur was an accidental president at an inopportune time, but he is part of the tapestry of who we are more than most ever have been or most of us will ever be. He was president in an un-ideological era. The Senate would shortly be dubbed the “Millionaires’ Club,” and the House of Representatives was an unruly place of loose coalitions and influence trading.   State and local politics were controlled by party machines that prized loyalty. Politicians genuflected to the concept of the public good, and they occasionally spoke of public service. But they didn’t seem to hold either very dear.

The politicians of the Gilded Age, perhaps mirroring the mood of the public, turned away from troubling intractable like freedom, democracy, equality, and attended instead to order, stability and prosperity.

Though the Republican party continued to “wave the bloody shirt” at each presidential convention, hoping to dredge up Civil War passions and eke out an advantage against the better-organized though less popular Democrats, that yielded diminishing returns. In a Gilded Age version of what-have-you-done-for-me-lately, the voting public demanded more than nostalgia for the glorious battles of Gettysburg and Antietam.

Cities were kept together by political machines, which were tight-knit organizations that corralled votes, collected a percentage of profits, and kept the peace. The machine was epitomized by Tammany Hall in New York City and its majordomo, William Marcy Tweed, a Democrat boos surrounded by a sea of Republicans. More than any mayor, “Boss” Tweed ran New York.

His men greeted immigrants as they stepped ashore in lower Manhattan, offered them money and liquor, found them work, and in return demanded their allegiance and a tithe. Supported by Irish Catholics, who made up nearly a quarter of New York’s population, Tweed held multiple offices, controlled lucrative public works projects (including early plans for Central Park), chose aldermen, and herded voters to the polls, where they drunkenly anointed the Boss’s candidates.

Tweed was gone by 1872, forced out and prosecuted, but the system kept going. Every [Northern] city had its machine, and counties did as well. National politics was simply the apex of the pyramid that rested on local bosses and layers of graft.”

(Chester Alan Arthur, Zachary Karabell, Henry holt and Company, 2004, pp. 5-6)

The freedmen did not receive the franchise because of their political maturity and judgment as the clear intent was to simply keep the Republican party in power. The Republican party’s Union League organization taught the Southern black man to hate his white neighbor, and to vote for Northern men whose own States had initiated Jim Crow laws. An excellent source for Northern antebellum racial views is “North of Slavery: The Negro in the Free States, 1790-1860,” Leon Litwack, Chicago, 1961.

Bernhard Thuersam, www.circa1865.org

Lincoln’s Party of White Supremacy

“The Republican leaders were quite aware in 1865 that the issue of Negro status and rights was closely connected with the two other great issues of Reconstruction – who should reconstruct the South and who should govern the country. They were increasingly conscious that in order to reconstruct the South along the lines they planned they would require the support and the votes of the freedmen.

And it was apparent to some that once the reconstructed States were restored to the Union the Republicans would need the votes of the freedmen to retain control over the national government. While they could agree on this much, they were far from agreeing on the status, the rights, the equality, or the future of the Negro.

The fact was that the constituency on which the Republican congressmen relied in the North lived in a race-conscious, segregated society devoted to the doctrine on white supremacy and Negro inferiority.

“In virtually every phase of existence,” writes Leon Litwack with regard to the North in 1860, “Negroes found themselves systematically separated from whites. They were either excluded from railway cars, omnibuses, stagecoaches, and steamboats and assigned to special “Jim Crow” sections; they sat, when permitted, in secluded and remote corners of theaters and lecture halls; they could not enter most hotels, restaurants and resorts, except as servants; they prayed in “Negro pews” in the white churches . . . Moreover, they were often educated in segregated schools, punished in segregated prisons, nursed in segregated hospitals, and buried in segregated cemeteries.”

Ninety-three per cent of the 225,000 Northern Negroes in 1860 lived in States that denied them the ballot, and 7 per cent lived in the five New England States that permitted them to vote. Ohio and New York had discriminatory qualifications that practically eliminated Negro voting.

Ohio denied them poor relief, and most States of the old Northwest had laws carrying penalties against Negroes settling in those States. Everywhere in the free States the Negro met with barriers to job opportunities, and in most places he encountered severe limitations to the protection of his life, liberty and property.

[Many Republican leaders], like Senator Lyman Trumbull of Illinois, the close friend of Lincoln, found no difficulty in reconciling antislavery with anti-Negro views. “We, the Republican party,” said Senator Trumbull in 1858,” are the white man’s party. We are for free white men, and for making white labor respectable and honorable, which it can never be when negro slave labor is brought into competition with it.” [And] William H. Seward, who in 1860 described the American Negro as “a foreign and feeble element like the Indians, incapable of assimilation”; [and], Senator Henry Wilson of Massachusetts, who firmly disavowed any belief “in the mental or intellectual equality of the African race with this proud and domineering race of ours.”

(Seeds of Failure in Radical Race Policy, C. Vann Woodward, New Frontiers of the American Reconstruction, Harold M. Hyman, editor, pp. 125-12”

Lincoln’s endless levies for troops and dwindling enlistments forced him to scour Europe for mercenaries, sending agents with cash and promises of government land to attract military age immigrants. The editor of the Ulster Observer cited below pointed out that the Southern army was full of Irishmen and “asked on what principle the Irish people could leave their homeland to steep their hands in the blood of those who were their kith and kin.”

Bernhard Thuersam, www.circa1865.org

European Mercenaries for Lincoln

“[T]here had begun to be opposition to the departure of Irishmen from the country by the thousand, a migration greatly aggravated by the economic distress of the island. As early as January, 1862, the Liverpool Reporter observed that for several months young men loaded with gold watches and large bounties had been leaving Ireland, ostensibly to emigrate to America, but actually to serve in the Federal army, for which they were engaged by Northern agents.

An extract from the Ulster Observer of Belfast is typical of the comments appearing in the opposition press:

“We have more respect for our country and our countrymen than to see them wearing the livery of a foreign state in a cause which involves no principle with which they can be identified . . . [but America] cannot, and should not, expect our countrymen to be her mercenaries in the present fratricidal struggle. Already the battlefields are white with the bones of their brethren.  Thousand of Irishmen have, thanklessly, it would appear, laid down their lives for the North . . . and if President Lincoln still stands in need of human hecatombs, he should look elsewhere than to the decimated home of Ireland for the victims.”

In general, it can be stated that the public journals were loud in denouncing “Federal agents” and clamorous for their prosecution and punishment.

” . . . One might say that [Secretary of State] Seward did everything he could to encourage . . . [foreign enlistments] . . . the Homestead Act of May, 1862, which provided free farms to all aliens who had filed declarations of intention to become citizens of the United States. It further provided that foreign-born residents might become full citizens after one years’ residence on condition of honorable service in the army.

By an act approved July 4^th, 1864, the Office of Commissioner of Immigration was created under the Secretary of State; the duties imposed upon him were to gather information as to soil, climate, minerals, agricultural products, wages, transportation, and employment needs. This information was to be disseminated throughout the countries of Europe.”

(Foreigners in the Union Army and Navy, Ella Lonn, LSU Press, 1951, pp. 412-418)

After terrorizing the civilian population of Georgia and South Carolina, the enemy entered North Carolina in early March 1865 to bring the same to its women and children living in their path. Houses were ransacked for anything of value, livestock was taken or killed, and the defenseless were left to starve.

Bernhard Thuersam, www.circa1865.org

Sherman’s Escaped Fiends from the Lower Regions

“General Sherman was traveling with the Fifteenth Corps on March 8 [1865] when it crossed the line into North Carolina, and that evening both the General and the corps went into camp near Laurel Hill Presbyterian Church, a region his soldiers thought looked “Real northern-like. Small farms and nice white, tidy dwellings.”

General Sherman, still riding with the Fifteenth Corps, took refuge on the night of March 9 from a “terrible storm of rain” in a little Presbyterian church called Bethel. Refusing a bit of carpet one of his staff had improvised into a bed on the pulpit platform, the General stretched himself out on one of the wooden pews for the night. Not far from Bethel Church, at the meeting hall of the Richmond Temperance and Literary Society, could be found another reminder of Sherman’s visit. J.M. Johnson, secretary of the society, entering in the minutes, April 22, 1865:

“After a considerable interruption, caused by the unwelcome visit of Sherman’s thieves, the Society meets again. And, of course, when God’s own house is outraged by the Yankee brutes, temples of morality and science will not be respected.  We find the ornaments of our fair little Hall shattered and ruined; our book shelves empty; the grove strewn with fragments of valuable, precious volumes; the speeches and productions of members who are sleeping in their silent graves, torn and trampled in the mire, “as pearls before the swine.”

“Ye illiterate beasts! Ye children of vice! Ye have not yet demoralized us, Today we marshal our little band again; and with three cheers for Temperance and literature, unfurl our triumphant banner to the breeze.”

A resident of the village of Philadelphus [Robeson county], after passing through “the ordeal of brutal, inhuman and merciless Yankeeism,” wrote: “They visited us in torrents,” and acted like “escaped fiends from the lower regions . . . ”

(The Civil War in North Carolina, John G. Barrett, UNC Press, 1963, pp. 301-302)

Today’s progressive religion of empathy with oppressed peoples worldwide emulates that of the antebellum abolitionist, who expressed deep concern with people he had never met, could not understand, and whose world was alien to him. To salve their own guilt and difficult grasp of reality, the abolitionist fomented a bloody conflict which unleashed forces no one could control, and an oppressive result we live with today.

Bernhard Thuersam, www.circa1865.org

Emancipation Regardless of Consequences

“Most Northerners before the Civil War, and indeed many slaveholders, were “against” slavery.” The abolitionists recognized also that they must continually reinforce their own commitment to their cause. The frequent meetings and intra-group journals of any movement for change serve an indispensable function even when they repeatedly pass the same resolutions and proclaim familiar truths to the already committed.

The twin tasks of refreshing the commitment of abolitionists and of converting outsiders’ passive disapproval of slavery into active opposition differed only in emphasis, especially after the movement had grown from a handful of pioneers into a network of societies with thousands of members.

In propaganda aimed at both groups, the abolitionists relied heavily on the same arguments: among others, that slavery denied the humanity of the Negro and prevented the slave from having normal family relations and religious life, that the North shared the slaveowners’ guilt, that absolute power of one individual over another encourages atrocities, that slavery was responsible for the degraded condition of Northern free Negroes . . . ”

[William Lloyd Garrison] deliberately [pictured] himself in the place of the oppressed. On the first anniversary of his marriage, he wrote to his brother-in-law describing his happiness and extolling the institution of marriage; and he added, how horrible it would be if he and Helen were slaves and were separated by sale. All the more reason, then, to rededicate his life to the abolition of slavery.

This theme, which for convenience will be referred to as “empathy,” appears repeatedly in abolitionists’ private discourse and public propaganda, in exhortations among themselves to increase their zeal and in efforts to induce complacent whites to imagine themselves in the place of the slaves.

But the abolitionist movement comprised mainly white men and women, most of whom had never been in the South. The empathy theme can thus be seen, perhaps, as a substitute for direct involvement in the suffering that movement was dedicated to end. It appeared in other forms as well. When Abby Kelley Foster was asked how she could leave her baby with others, to travel the abolitionist lecture circuit, she replied, “For the sake of the mothers who are robbed of all their children.” Beriah Green . . . [said]: You can act as if you felt that you were bound with those who are in bonds, as if their cause was all your own . . .”

Abolitionist propaganda reiterated that Northern whites were in fact indirectly “bound with” the slaves. Paradoxically, the North was not only an accessory to the enslavement of the Negroes; it was at the same time a secondary victim of the slaveowners. With their strong religious motive for proclaiming the duty of emancipation regardless of the consequences, the abolitionists could not in good conscious appeal to the North solely or chiefly on the basis of interest.

The empathy theme enabled them in a remarkable way to combine interest with principle, for if a Northern white could be made to feel bound with the slave he would fight the slave power to defend himself, as Beriah Green suggested, as well as to exculpate himself. To free the slave would be to free himself of both guilt and bondage; the two motives would become one.”

(Means and Ends in American Abolitionism, Aileen S. Kraditor, Pantheon Books, 1967, pp. 235-238)

With his war bankrupting the national treasury and consuming available gold reserves, Lincoln’s solution was to create a national banking system controlled from Washington, claiming military necessity as the reason for printing paper currency of questionable value and legality. Radical Ohio Senator John Sherman knew national banking “would centralize power in Washington” and he urged congressional colleagues to “nationalize as much as possible,” even the currency, so as to “make men love their country before their States.” All private interests, all local interests, all banking interests, the interests of individuals, everything, should be subordinate now to the interest of the Government.”

Bernhard Thuersam, www.circa1865.org

Revolutionary War Financing Precedes the Federal Reserve

“At the time of the Civil War the [United States did not have a nationalized] system of banking and banknote currency, and one of the important matters of [Northern] war finance was the creation of such a system.

“[Treasury Secretary Salmon P. Chase] . . . in his report of December, 1862 . . . outlined his plan for national banks and national bank currency. What Chase proposed was a system of national banking associations under Federal supervision, which would issue bank notes based upon United States bonds and guaranteed by the Federal government.

It became law on February 25, 1863; but this law had certain defects, so that Congress faced the whole problem afresh and reframed the statute. It is therefore to the law of June 3, 1864, that one must turn for the legislative basis of the national banking system as it emerged from the Civil War. Other provisions of the act were concerned with the maintenance of a required reserve against both banknotes and deposits; the depositing of such reserve in “reserve cities” (which permitted the concentration of bankers’ funds in New York City); . . . and the use of banks as depositaries and financial agents for the government.

As a method of stimulating, or rather forcing, the sale of United States bonds, the national bank act became an essential feature of Civil War finance. After the war (1866) a tax was placed on State banknotes in order to tax them out of existence, so that national banks possessed a monopoly of banknote currency.

To think of the national banking system as a purely fiscal measure innocent of politics and free from exploitation would indeed be a naïve assumption. Investigation shows that it soon “developed into something that was neither national nor a banking system.

Instead it was a loose organization of currency factories designed to . . . [serve] commercial communities and confined…almost entirely to the New England and Middle Atlantic States.” One of the chief injustices of the system as actually administered was the favoritism shown after the war to the eastern States which received the lion’s share of the $300,000,000 of banknote circulation assigned by law as the maximum for the whole country.

As explained by George LaVerne Anderson, each State in the New England and Middle Atlantic regions obtained an amount of banknotes in excess of its quota, while not a State in the South received an amount equal to its quota.

“Massachusetts (writes Anderson) received the circulation which would have been necessary to raise Virginia, West Virginia, North and South Carolina, Louisiana, Florida and Arkansas to their legal quotas . . . The little State of Connecticut had more national bank circulation than Michigan, Wisconsin, Iowa, Minnesota, Kansas, Missouri, Kentucky and Tennessee . . . Massachusetts had more than the rest of the Union exclusive of New England and Middle Atlantic States.

[An] interesting comparison [he continues] can be made between comparatively small New England towns and the Southern States. Thus Woonsocket, Rhode Island, had more national bank circulation than North and South Carolina, Mississippi and Arkansas; Waterville, Maine, had nearly as much as Alabama; New Haven, Connecticut, had more than any single Southern State.

If it be said in answer to these facts that distributing according to population is absurd . . . it should be kept in mind that not a single Southern State had obtained, by October 1869, its legal share of the $150,000,000 which was to have been apportioned according to existing banking capital, wealth and resources.”

With some modification [this] national banking system continued for half a century. Though it had some merit, it created an inelastic currency, tended toward the concentration of bank resources in New York, opened the way for serious abuse in the speculative exploitation of bank funds, and contributed to the sharp financial flurry of 1907. Proving inadequate as a nationwide control of currency and banking, it was tardily superseded by an improved plan in the federal reserve act of 1913.”

The Civil War and Reconstruction, J.G. Randall, D.C. Heath and Company, 1937, pp. 455-458)

Crucial to the success of Lincoln’s creation of fiat money and bond-sales was master publicist and financier Jay Cooke. The latter “subsidized editors and columnists of most of the important papers of the nation” whose journalists were still receiving bribes from him when he pushed for bond redemption in gold. At the end of the war, Cooke worked hard to convince the Northern populace that their onerous debt was justified and “His efforts were supplemented by the Loyal Publications League, which was resuscitated in 1868 in order “to spread throughout the country correct views upon the subject of taxation and currency.”

Bernhard Thuersam, www.circa1865.org

Radical Ideology Printed on “Lincoln Green”

“The cruel quandary which the effort to rein in the lower classes created for radicalism became enmeshed in the debate over the greenback currency. Despite all its complexities, the currency question typified the fate of Radical doctrines, for here the Republican party repudiated its own radical handiwork.

Both the plan for a managed fiat currency and the rhetoric subsequently used in its defense were the offspring of the Radical wing of the Republican party. The legal tender bill was taken up by Congress at the end of 1861 because gold loans floated by the Treasury had exhausted the coin supply of the banks and forced them to suspend specie payments.

The Union was confronted by the prospect of runaway bank-note inflation and the sale of bonds below par value, either of which would have raised the cost of prosecuting the war toward a prohibitive level. At this juncture, Elbridge Spaulding, a Buffalo banker and Republican congressman, proposed a solution in defiance of the national traditions of States’ rights, hard money, and bank control of currency: that the federal government should issue its own interest-free notes receivable for all public dues and legal tender for all private transactions.

The value of these notes was to be stabilized by permitting their conversion into government bonds bearing 6 per cent interest, which were payable in five years and redeemable in twenty, commonly known as 5-20s’.

This majestically simple scheme met with furious opposition from the Democrats and many bankers. Pendleton, Vallandigham, Conkling and Justin Morill stood shoulder to shoulder against the bill; but its Radical supporters, led by Thaddeus Stevens, enlisted enough Conservative (and even banker) support for the scheme as a temporary war measure for it to pass the House 93 to 59. Senate opponents were strong enough to graft on an amendment providing for payment of interest on the 5-20 bonds in coin.

This action created the problem of how to raise the promised gold. [but compromise established a dual-currency system]: gold for the importer [tariffs] and bond-holder, greenbacks for everyday domestic purposes.

As the war continued and governmental needs for borrowed funds soared, both the currency supply and the debt structure grew ever more complex. By the war’s end the country was faced with rampant inflation, constant manipulation of gold prices by speculators, a morass of different bond issues, and four major forms of currency – greenbacks, specie, national bank notes, and State bank notes. The task of unraveling the mess fell on Treasury Secretary Hugh McCulloch . . . [and] with authority granted by Congress in March 1866, [he] initiated a steady withdrawal of greenbacks from circulation, and redemption of short-term notes.

[A] bill introduced by Robert Schenck to force a halt to the Treasury’s contraction policy enlisted the support not only of Stevens, Butler and Logan, but also Senator Sherman and Jay Cooke, and of numerous Democrats. The measure swept the House by a vote of 127 to 14, and in the Senate only four Conservative Republicans voted against it. The Conservative economic program had been thoroughly defeated.

Hard money advocates characterized their own position as scientifically sound and moral, and that of their [fiat money] foes as demagogic and dishonest. Speaking for Spaulding’s bill in 1862, Henry Wilson had described the debate as “a contest between brokers and jobbers, and moneychangers on the one side, and the people of the United States on the other.”

Not to be outdone, John Bingham charged the bill’s foes with misconstruing the Constitution for “the purpose of denationalizing the people . . . [and stripping] the power of the people over their monetary interests in this hour of national exigency.”

Here was the Radical ideology in its purest form, printed, as it were, on bills of “Lincoln green.” Understandably, Henry Carey attributed both the economic vigor and the patriotic spirit of the nation to protection and greenbacks . . . Thaddeus Stevens [had] judged the whole national banking system as a “mistake,” [and] declared: “Every dollar of paper [money] in circulation ought to be issued by the Government of the United States.” [Republican editor Benjamin Bannon of Pennsylvania] devised a scheme for the circulation of greenbacks as the exclusive currency of the nation, with national banks serving as distribution centers only.

From the tariff of 1846 until the Republican legislative triumphs of 1862, Bannan argued, nonproductive capital had ruled the land, and now it was again “striving to gain the ascendancy.”

(Beyond Equality, Labor and the Radical Republicans, 1862-1872, David Montgomery, University of Illinois Press, 1981, pp. 340-345)