Browsing "Lincoln’s Revolutionary Legacy"

Shaping Northern Opinion Against the South

As the Northern armies spread across the Confederacy, newspaper reporters following them sent observations and stories northward. The result was predictable as they wrote of an evil land and emphasized any unfavorable aspects of Southern civilization. In the last year of war, the United States government refused prisoner exchanges while Jefferson Davis and Robert E. Lee pleaded in vain for the starving men in blue held in Southern prisoner of war camps to be saved by their own leaders.

Bernhard Thuersam, www.Circa1865.com

 

Shaping Northern Opinion Against the South

“[The] years from 1865 to 1880 were dreary years in which there was no peace. The war had only ended on the battlefield. In the minds of men it still persisted. Memories of the past and issues living in the present combined to perpetuate and perhaps enlarge the antagonism that victory and defeat created. One observer made the comment that “it was useless to preach forgiveness and good will to men still burning with the memory of their wrongs.”

Deeply [engraved] on the Northern heart was the conviction that the Confederacy had deliberately mistreated the prisoners of war captured by its armies. The Southern prisons . . . were at best what one Confederate surgeon described as a “gigantic mass of human misery.”

A war-crazed [Northern] public could not dissociate this suffering from deliberate intent of the enemy. Rather it fitted the purposes of propaganda to attribute the barest motives to the Confederates [that] “there was a fixed determination on the part of the rebels to kill the Union soldiers who fell into their hands.” The great non-governmental agencies of relief and propaganda contributed to the spread of similar impressions.

Northern opinion was thus rigidly shaped in the belief that “tens of thousands of national soldiers . . . were deliberately shot to death, as at Fort Pillow, or frozen to death as at Belle Island, or starved to death as at Andersonville, or sickened to death by swamp malaria, as in South Carolina.”

Horror passed into fury and fury into a demand for revenge. And the arch-fiend of iniquity, for so the North regarded him, Major Henry Wirz, was hanged as a murderer [in November 1865] . . . he was the scapegoat upon whom centered the full force of Northern wrath.

Meanwhile the South had no effective way of meeting these charges of brutality [though] it is not difficult to find, however, material in these years that the South received the Northern charge with sullen hatred.

Typical is an article contributed to the Southern Review in January 1867:

“The impartial times to come will hardly understand how a nation, which not only permitted but encouraged its government to declare medicines and surgical instruments contraband of war, and to destroy by fire and sword the habitations and food of noncombatants, as well as the fruits of the earth and the implements of tillage, should afterwards have clamored for the blood of captive enemies, because they did not feed their prisoners out of their own starvation and heal them in their succorless hospitals.

And when a final and accurate development shall have been made of the facts connected with the exchange of prisoners between the belligerents, and it shall have been demonstrated . . . that all the nameless horrors [of both sides] were the result of a deliberate and inexorable policy of non-exchange on the part of the United States, founded on an equally deliberate calculation of their ability to furnish a greater mass of humanity than the Confederacy could afford for starvation and the shambles, men will wonder how it was that a people, passing for civilized and Christian, should have consigned Jefferson Davis to a cell, while they tolerated Edwin M. Stanton as a cabinet minister.”

(The Road to Reunion, 1865-1900, Paul H. Buck, Little, Brown and Company, 1937, excerpts, pp. 45-48)

Lincoln’s Inflationary Finances

It did not take long after Fort Sumter for Northern war expenditures to reach staggering proportions. James Randall in his “Civil War and Reconstruction” (1937, DC Heath) wrote: “With the treasury nearly empty, financial markets shaken, foreign bankers unsympathetic, taxation inadequate, and loans unmarketable except at a discount, the door of escape by way of paper money seemed most tempting.” Lincoln resorted to the printing press to create money.

Bernhard Thuersam, www.Circa1865.com

 

Lincoln’s Inflationary Finances

“The classic study of Union inflation was Wesley Clair Mitchell century-old “History of the Greenbacks.” Initially the war was to be financed with the use of government bonds, tax revenues would be used to pay the normal expenditures of government, and the gold standard would be retained. However, this system quickly collapsed in late 1861 and the first of three legal tender acts was passed in February 1862 with a total of $450 million in greenbacks authorized for issue.

When an economy has two types of money, such as gold and paper, and they are both defined in the same units, such as dollars, Gresham’s Law states that bad money will drive good money out of circulation. And in accordance with Gresham’s Law, greenback dollars quickly displaced gold dollars as the circulating medium of exchange.

The value of greenbacks quickly depreciated in terms of gold and fell to a low point of only 35 cents worth of gold on July 11, 1864. Amazingly, the Union currency had depreciated as much in three short years as the dollar has in the thirty years since the United States went off the gold standard. The prices of goods appreciated in terms of greenbacks from an index value of 100 in 1860 to a maximum of 216.8 in 1865.

Citizens tended to blame higher prices on business, speculators, and foreigners. Some government officials believed that speculators in the gold market were somehow causing the value of greenbacks to fall, but the real culprit for inflation was the government itself.

In addition to an ever-increasing supply of greenbacks, Mitchell showed that the value of greenbacks in terms of gold would change on the basis of expectations that in turn were based on peoples’ estimated probability that the greenbacks would be redeemed for gold after the war. Battlefield losses were associated with declines in value while victories meant higher values for the greenback.

Higher prices also meant that the Union government would have to issue more greenbacks in order to purchase war supplies and pay its soldiers [and pay enlistment bounties]. Because the Union government would eventually have to pay its war debts and redeem the greenbacks in gold, Mitchell . . . calculated that greenbacks had increased the real cost of the war to the government itself by $528 million. Of course, the politicians who borrowed and spent the money during the war were not necessarily the same ones who had to pay off the debt and redeem the greenbacks after the war.

Mitchell also found that the switch from gold to paper . . . [created] an illusory increase in property values, an increase in extravagance and the purchase of luxury goods, a crippling of economic efficiency, and a decrease in real wages for farmers, laborers, professionals, teachers and soldiers. As expected, the Union’s inflationary finances created an illusion of general prosperity that greatly upset the ability of entrepreneurs, workers, consumers, and bureaucrats to make accurate economic calculations.”

(Tariffs, Blockades and Inflation: The Economics of the Civil War; Mark Thornton and Robert Ekelund, Jr., Scholarly Resources Books, excerpts, pp. 68-69)

Liberator and Imperial Protector

What General Enoch Crowder warned of below was reminiscent of Reconstruction’s political control in the South, as Washington-recognized Northern carpetbag governors and legislators gained official recognition and were free to engage in fraudulent political methods and elections to remain in power. Under Lincoln and the Republican Radicals, the US government became “a blind instrument for fastening an undesirable or fraudulent government upon a people” – 50 years later the Cuban people were assured of fraudulent government fastened by Washington.

Bernhard Thuersam, www.Circa1865.com

 

Liberator and Imperial Protector

“The conditions imposed on Cuban independence at the end of the American military occupation in 1902 had effectively subjected Cuban sovereignty to U.S. supervision. “The Government of Cuba,” Article III of the Platt Amendment stipulated, “consents that the United States may exercise the right to intervene for the preservation of Cuban independence, the maintenance of a government adequate for the preservation of life, property and individual liberty, and for discharging the obligations with respect to Cuba imposed by the Treaty of Paris on the United States.

By virtue of the Platt Amendment, Washington assumed ultimate responsibility for underwriting the solvency of national administration. The very conduct of [Cuban] national politics emerged as a source of policy concern in Washington. The American presence in Cuba loomed pervasively, functioning always as the understood coefficient of all political strategies.

Specifically, the Platt Amendment, as the understood basis of U.S. Cuban policy, encouraged outright an incumbent party, assured of American support, to embark on a course of partisan excesses, including reelection through illegal, if ostensibly constitutional, methods.

As early as 1912, General Enoch H. Crowder, the U.S. legal advisor during the second intervention, caution Washington against becoming captive to the political maneuvers of any single faction in Cuba. With a sober understanding of . . . U.S. – Cuban treaty relations, Crowder warned:

“Having once gained the official recognition of this government, and so become “the duly constituted authority,” . . . it could by fraudulent practices as was undoubtedly done in the last election for President prior to the election of 1906, secure its apparent reelection, and if the protest became too violent to overcome, such government would only have to notify the President of the United States and request assistance. The right of a people to change their rulers, and in fact change their form of government when it becomes subversive of the principle for which it is instituted . . . is essential to the preservation of a free government . . . Provision should be made that the United States will not be made the blind instrument for fastening an undesirable or fraudulent government upon a people whom we profess to be preserving a free government.”

Crowder’s plea went unheeded. On the contrary, within a year, Woodrow Wilson proclaimed constitutionality as the cornerstone of US Latin American policy . . . “We are the friends of constitutional government in America, Wilson averred, “We are more than its friends, we are its champions.”

(Intervention, Revolution and Politics in Cuba, 1913-1921; Louis A. Perez, Jr., University of Pittsburgh Press, 1978, excerpts pp. 11-12)

Public Debt, Then and Now

Abraham Lincoln was a devotee of the Alexander Hamilton/Henry Clay “American System” of public debt, tariff protectionism, government subsidies and a national bank. To finance his war in 1861, Lincoln turned to an income tax, and then succumbed to printing money. Nowhere in the United States Constitution is the federal government authorized to make paper money legal tender. By 1865, the public debt was $2.6 billion, and the direct/indirect cost of Lincoln’s war would reach $8 billion by 1900.

www.Bernhard Thuersam, www.Circa1865.com

 

Public Debt, Then and Now

“Contrary to official capitalist wisdom, debt does not create economic growth. This idea is a swindle. Interest to the very rich . . . does not produce anything. It does not multiply creatively into new enterprises and jobs; it merely diverts ever-greater proportions of earning that might be fruitfully invested.

The proof is all around us. How could the vast unpayable federal debt, which absorbs much of the government’s income just for the interest bondholders, foreign and domestic, possibly be an economic stimulus? How can the immense and near universal burden of personal mortgage and credit card debt possibly indicate a healthy economy and commonwealth?

The matter is simple, obvious to anybody except a politician, a captive economist, or a media flack, and it ought to be conveyed to the people at every opportunity. Debt is killing us. Every wise man in recorded history has affirmed that debt is not a good thing. Debt can destroy a family, a government, a society.

Alexander Hamilton, an upwardly mobile immigrant bastard with a Napoleon complex, declared that “a public debt is a public blessing.” Troubled, but not surprised, Jefferson noted a connection between debt cruel taxation that undermined the independence of the citizens, warning that “we must not let our rulers load us with perpetual debt.”

Weighed down by government debt, the people would have to labor ever harder to pay the debt-holders, leaving them “no time to think, no means of calling the managers to account.” Jefferson avowed as a core principle that “the earth belongs in usufruct to the living,” but the living had no right to consume the earnings of posterity.

Antebellum statesmen like John Taylor of Caroline and John C. Calhoun and economists like William Gouge and Condy Rageut made the same case. After the War Between the States, so did William Graham Sumner, Thomas E. Watson and countless other public men and thinkers.

Republicans (and their predecessors) have always been the party of bankers and bondholders, service to the rich being for them a natural and essential function of the federal government. Opposition to the federal debt was long a plank in the Democratic platform, but Democrats today are just as guilty as the Republicans in regard to the issue.

Lip service to the virtue of “low public debt” continued until Franklin Roosevelt discovered Keynes and declared that debt is no problem “because we owe it to ourselves” – “ourselves” being a conveniently vague and collective being.

The bipartisan bailout of misbehaving bankers and brokers that we saw a few years ago, and the failure of a multitude of presidential candidates to mention the matter, is not promising.”

(It’s the Debt, Stupid, Clyde N. Wilson, Chronicles, February 2016, excerpt pg. 16)

Unproductive Republican Economic Policies

April, 1865 witnessed the victory of Northern industrial capitalism over the conservative, agrarian South – no longer could Southern statesmen restrain the North in the halls of Congress. Post-1865 America saw the rise of corporations, the completion of Manifest Destiny and near-extermination of the Indians, and the gilded age of “evil robber barons.”

Bernhard Thuersam, www.Circa1865.com

 

Unproductive Republican Economic Policies

“Historians have tended to treat the Civil War as a boon to industry and the American economy. Thomas C. Cochrane cites several prominent historians . . . who variously praised the impact of the conflict on wartime production and its stimulating effect on postwar economic and industrial development.

Cochrane . . . examined statistical data on industrial production and found that, in general, there was not a strong case for a positive impact and that the war had a retarding effect on industry and the economy. Cochrane also found little support for the claims of beneficial effects of the Civil War on postwar development. He concludes with this speculation:

“From most standpoints the Civil War was a national disaster, but Americans like to see their history in terms of optimism and progress. Perhaps the war was put in a perspective suited to the culture by seeing it as good because in addition to achieving freedom for the Negro it brought about industrial progress.”

[Charles and Mary] Beard’s claim that the Civil War was a spur to industry and the rise of the American economy is based on the lasses-faire philosophy of the Republican Party and its success in implementing its major policy goals, such as subsidies to the intercontinental railroads, the establishment of a national currency and the protective tariff.

The Republican’s economic philosophy was not truly laissez-fair. In fact, their policy agenda was the opposite . . . in that it advocated special treatment for big business and a much larger role for the federal government. This can be seen in Republican policies to subsidize railroads, provide protective tariffs [for select private industries], and increase government debt and government control over money and banking as well as in their attitude toward labor.

Their policies [of tariffs and subsidies] . . . are now considered economically wasteful . . . and considered nothing more than special interests seeking a handout from the taxpayer through the government. [That Republican policies were productive] ignores the negative effects on the agriculture, service and cultural sectors. The Republicans’ policy would be better labelled as mercantilist in that it facilitated rent-seeking behavior.

Capital diverted to railroad building would surely have been put to good use elsewhere in the economy . . . [and] Moreover, had railroads not been highly subsidized, a better built, lower cost, and more timely system could have been put in place.

Tariffs were a centerpiece of Republican policy. They reversed a relatively free-trade policy . . . [and] protectionism forced consumers to pay higher prices for both imported and domestically produced goods protected by the tariff – that is, they purchased fewer of these products, used less desirable substitutes, and had a lower standard of living.

On net, the losses to consumers and the overall economy are greater than the gains to the protected producers and the tax revenue that accrues to the government.”

(Tariffs, Blockades and Inflation, the Economics of the Civil War; Mark Thornton and Robert B. Ekelund, Jr., Scholarly Resources Books, 2004, excerpts, pp. 84-87)

Our Inhuman Foe

Though Northern General David Birney was born in Alabama, his Kentucky abolitionist father moved the family to Philadelphia where he was educated and indoctrinated. A thoroughly political general who rose through the ranks by self-promotion and connections, his career was dotted with discipline issues and courts martial. He was described as a “pale, Puritanical figure, with a demeanor of unmovable coldness . . .” He ordered the indiscriminate bombardment of women, children and old men in mid-1864 Petersburg, which offered no military targets.

Bernhard Thuersam, www.Circa1865.com

 

Our Inhuman Foe

“The war against the civilian population of the Cockade City began in earnest on June 16. The 10th Massachusetts Battery took an advanced position near the Hare House Hill, from which, one artilleryman later recalled, the “spires of Petersburg were now in full view, though distant, perhaps, two miles.”

Two days of bitter fighting remained before the Union leaders would admit failure in their attempt to storm Petersburg, but the targeting of noncombatants did not wait that long. “By order of Gen. Birney we gave our pieces ample elevation and fired the first shots known to have been thrown into the city,” cannoneer John D. Billings noted.

“What a night was the last,” Fanny Waddell wrote the next morning. “Our inhuman foe without a single warning opened their guns upon us, shelling a city full of defenseless women, children and old men.” The bombardment that began on June 16 lasted well into the early hours of June 17.

“I lay quietly until nearly one o’clock listening the bursting of the shells when one exploded so near that the light flashed in my face,” Mrs. Waddell recollected. Ah! The bitterness of that night will never pass from our hearts and memories.”

The correspondent for the Savannah Republican reported on June 19 that a “number of shells have exploded in the streets [of Petersburg], but thus far only eleven persons have been hurt, including one old Negro woman killed.”

An officer visiting Petersburg shortly after this report was filed thought that everything seemed “exceedingly depressing. The streets were almost deserted, and the destructive work of the shells was visible on every hand. Here a chimney was knocked off, here a handsome residence was deserted, with great rents in its walls, and the windows shattered by explosion; here stood a church tower mutilated, the church yard filled with new-made graves.”

Large numbers of civilians fled the Petersburg battle zone within days of Grant’s approach. James Albright, a Virginia artilleryman, wrote in his diary on June 20, “The vandals are still throwing shells into the city, and it is very distressing to see the poor women and children leaving. It is hard on all; but to see the poor women with the children on one arm and their little budgets on the other seeking a safe place – is enough to move the hardest heart.”

The civilian exodus was accelerated by rumors that the Yankees planned to celebrate the Fourth of July with “a furious bombardment of the City.” Another Petersburg diarist noted that during one bombardment “pieces of shell [were] rattling like hail about our house.” There were so many burning structures that one Southern artilleryman angrily declared that the “Yankees appear[ed] to be throwing incendiary shells into the city – as some five buildings were on fire at the same time.”

At least one Union battery did use Petersburg to test its homemade incendiary shells. These were concocted by Major Jacob Roemer and thrown into the city in late July, doing “a great deal of damage there.” Another heavy Union bombardment on July 28 started a number of blazes, all noted by Union observers.

To add to the fire hazard, the Union artillery would concentrate its shelling on the burning structures, so that the air around the men battling the flames would be filled with a “perfect storm of shot and shell.”

(The Last Citadel, Petersburg, Virginia, June 1864-April 1865, Noah Andre Trudeau, Little, Brown and Company, 1991, excerpts pp. 91-92; 95-96)

Today’s Tower of Babel

Like Woodrow Wilson’s League of Nations — the victors imposing their order on defeated and newly-created ethnic “nations” in a utopian fashion — the later United Nations goal was to create the same and prevent future wars. Wilson naively believed that the League could prevent unethical behavior by states and use force to control them which did nothing but spark future wars. Today, formerly Christian nations in Europe have shed their historical identities to become merely market collectives with no borders, and populations of multi-ethnic tribes warring against each other.

Bernhard Thuersam, www.Circa1865.com

 

Today’s Tower of Babel

“[Western] nations are obviously evolving into godless societies; they hail not the sovereignty of God but of man, and claim that religious beliefs are essentially detrimental to peace. But it takes only common sense to realize that atheism goes hand in hand with unfettered individualism.

Modern times are times of hostility to religion; it is no happenstance that they have also seen the birth of radical individual freedom. Epicurus long ago taught that there could be no society among men but that which obtains among small circles of friends; it is no happenstance that he also taught that there are no gods.

Inasmuch as a nation is a cohesive body whose members are the individual citizens, it needs some sort of cementing mortar to bridge the gap that the freedom of each unavoidably creates between them, and all the more as such freedom becomes absolute. Building such a bridge presupposes that all citizens participate in something . . . [that] transcends them all . . . binding them without oppressing them.

And since this is the very definition of a religious belief, it must be concluded that no nation exists that is not upheld by some religious faith. Nations are terrestrial vessels anchored in the skies.

But Europe used to believe in a religion that (even though the passions of men led them too often to ignore it) preached a love of one’s neighbor that did not imply hatred of foreigners. Indeed, classic orthodox Christianity always taught men to love their own countries together with all men, irrespective of their nationalities. But then it meant that, just as is the case for individuals, nations – though distinct entities – felt they were parts of the same world; not a political one, since they all retained some sort of independence, but a spiritual one, whose unity was manifested at the time by their common compliance with one spiritual authority.

Today, we have something paradoxically called the United Nations, whose more or less goal is to unite mankind in a worldwide society built on the ruins of all nations. It is our Tower of Babel.”

(The Agony of Nations in the West, Claude Polin, Chronicles, February 2016, excerpts, pg. 13)

Stereotyping the South Up North

The 1861-65 war destroyed the American South’s economic, legal, political and social systems, and afterward ruled the region with proconsuls dispatched from Washington. From this aftermath of war came the invented view of the desolated South – a section known in antebellum times for providing the majority of presidents and exemplary political thinkers — as an uncouth and backward region steeped in laziness and illiteracy.

Bernhard Thuersam, www.Circa1865.com

 

Stereotyping the South Up North

“Strange notions have developed about the South. It is taken for granted that Southerners are a slow and lazy people. The Abolitionists and Radical Reconstructionists conveyed the impression — and fiction has augmented it — that plantation whites lived in idleness and ease while black hands did labor and chores for them.

The white women of the South are still thought to be lazy, pampered, helpless, spoiled creatures. All this comes out in fiction, shows, movies, and in street corner and parlor conversations. A conventional Southerner has evolved. He is tall, lanky, lazy, slow — except with the trigger finger — speaks with a drawl, says “you all” even to one person, and possesses a sort of insolent dignity.

The South is regarded as a backward, ignorant, hot-tempered and violent section, especially in its dealing with Negroes. Extravagant fictional treatments of the extremes of Southern life are quite generally accepted as accurate cross-section views of the South. In one of the most violent scenes of “Tobacco Road,” as played in a New York theater, an intelligent-looking woman remarked to her companion: “That’s just like the South.” Asked what part of the South she was from, she squirmed in her seat and soon left the theater.

Mud on the Stars, a lurid and patently preposterous story about life in Alabama, was well-received by New York critics. One reviewer said that it is from such men as the author of this filthy story, who incidentally is a self-confessed rake that we must look for information about the real South.

When Stars Fell on Alabama, a grotesque portrayal of life in Alabama appeared, it was widely acclaimed in the North, but when the same author wrote a similar book – Genesee Fever – about a certain community in New York State, the reviewers and commentators of New York were quick to point out that it represented a purely local and extreme situation in the State, and that it contained extravagant overtones and distortions for the purpose of literary effect.”

(One Hundred Years of Reconstruction, A.B. Moore, 1943, Southern Historical Society Addresses)

Subjugating Rebellion into Loyalty

Not recognizing the withdrawal of States from the voluntary Union in 1861, English-born Sen. Edward D. Baker of Oregon responds below to former Vice President and then-Senator John Breckenridge of Kentucky. Baker reportedly appeared in the Senate that day in the uniform of a Northern colonel, riding whip and saber in hand, claiming that secession was rebellion and that South Carolina was to be subjugated into loyalty. This, ironically from a man born in England, was what George III attempted some 85 years earlier.  Baker was mortally wounded at Ball’s Bluff in October 1861.

Bernhard Thuersam, www.Circa1865.com

 

Subjugating Rebellion into Loyalty

“The senator from Kentucky stands up here in a manly way in opposition to what he sees is the overwhelming sentiment of the Senate, and utters reproof, malediction, and prediction combined. Well sir, it is not every prediction that is prophesy.

I confess Mr. President, that I would not have predicted three weeks ago the disasters which have overtaken our arms; and I do not think [if I were to predict now] that six months hence the senator will indulge in the same tone of prediction which is his favorite key now. I would ask him what would you have us do now — a Confederate army within twenty miles of us, advancing, or threatening to advance, to overwhelm your government; to shake the pillars of the Union; to bring it down around your head in ruins if you stay here?

Are we to stop and talk about an uprising sentiment in the north against the war? Is it not the manly part to go on as we have begun, to raise money, and levy armies, to organize them, to prepare to advance; when we do advance, to regulate that advance by all the laws and regulations that civilization and humanity will allow in time of battle? To talk to us about stopping is idle; we will never stop. Will the senator yield to rebellion? Will he shrink from armed insurrection? Will his State justify it? Shall we send a flag of truce?

When we subjugate South Carolina, what shall we do? We shall compel its obedience to the Constitution of the United States; that is all. Why play upon words? We do not mean, we have never said, any more. If it be slavery that men should obey the Constitution their fathers fought for, let it be so.

We propose to subjugate rebellion into loyalty; we propose to subjugate insurrection into peace; we propose to subjugate Confederate anarchy into constitutional Union liberty. When the Confederate armies are scattered; when their leaders are banished from power; when the people return to a late repentant sense of the wrong they have done to a government they never felt but benignancy and blessing — then the Constitution made for us all will be felt by all, like the descending rains from heaven which bless all alike.

Sir, how can we retreat? What will become of constitutional government? What will become of public liberty? What of past glories? What of future hopes? No sir; a thousand times no, sir! We will rally . . . we will rally the people, the loyal people, of the whole country. They will pour forth their treasure, their money, their men, without stint, without measure.”

(Edward D. Baker, Senate speech of August 1, 1861. The World’s Famous Orations, W.J. Bryan, editor, Funk & Wagnall’s, 1906, pp. 3-8)

 

Corporate Tricks and Devices

Few, if any, Gilded Age tycoons were expert economists – but all understood theories of supply and demand, the law of diminishing returns, and assumed that every man was motivated by the selfish love of gain. Most also believed in unfettered competition, theoretically, unless bribed government officials could be used to handicap competitors. U.S. Grant’s notorious administration of corrupt and bought politicians helped pave the way into the Gilded Age – the predictable outcome of Lincoln’s revolution.

Bernhard Thuersam, www.Circa1865.com

 

Corporate Tricks and Devices

“Nobody expounded the folly of tampering with the laws of economics more eloquently than Yale’s great teacher of political economy, the dynamic William Graham Sumner. In his book What Social Classes Owe to Each Other, published in 1883, he had put the reformers to rout.

“The yearning after equality,” he had written, “”is the offspring of envy and covetousness, and there is no possible plan for satisfying that yearning which do aught else than rob A to give to B; consequently all such plans nourish some of the meanest vices of human nature, waste capital, and overthrow civilization.”

This emphatically did not mean that Sumner was opposed to a better life for everybody. On the contrary, as a man of high and generous principle – he had begun his working life as a clergyman – he was heartily in favor of it. But he believed in the wider extension of opportunity, not in changing the rules under which business was conducted. He argued that:

“[Instead] of endeavoring to redistribute acquisitions which have been made between the existing classes, our aim should be to increase, multiply, and extend the chances. Such is the work of civilization. Every improvement in education, science, art or government expands the chances of man on earth. Such expansion is no guarantee of equality. On the contrary, if there be liberty, some will profit by the chances eagerly and some will neglect them altogether. Therefore, the greater the chances, the more unequal will be the fortune of these two sets of men. So it ought to be, in all justice and right reason.”

Sumner would not have argued that there were not some ways in which legislation could protect the economically helpless. But he thought that most reform legislation was conceived in ignorance and drafted in folly.

“You need not think it necessary,” he would tell his Yale classes, “to have Washington exercise a political providence over the country. God has done that a good deal better by the laws of political economy.”

The irony of the situation lay in the fact that for generations men have been tinkering with economic law to their own advantage, and in the process had produced institutions which were emphatically not God’s work – as most of Sumner’s hearers presumably supposed them to be – but man’s.

The corporation, for instance, was not an invention of God’s. It was an invention of man’s. It was a creature of the state . . . [and] one of the great inventions of the nineteenth century . . . Yet be taking adroit advantage of the legislative acts which defined its privileges, one could play extraordinary tricks with it. Corporate devices could be used to permit A to rob B – or, let us say, more charitably, to permit A to drain off all the gravy in sight and leave none for B.

It was largely as a result of the discovery of tricks that could be played with corporations, and particularly with their capital stock, that the wealth produced in such a tremendous spate at the turn of the century flowed in large proportion into a few well-placed hands.”

(The Big Change, America Transforms Itself, 1900-1950, Frederick Lewis Allen, Harper & Brothers, 1952, pp. 67-69)

 

Pages:«1...28293031323334...52»