Circa1865

William O. Stoddard of upstate New York was one of three personal secretaries utilized by Lincoln, joined by John Hay and John Nicolay. Stoddard had an adventurist personality and became one of the office-seeking multitude looking for appointment in Lincoln’s new Republican administration.

White House Insider Information

“Stoddard was high-spirited . . . “And almost every man who can discover means for doing so is gambling in stocks and gold.” This game is fascinating, he says, because of “the sudden and unaccountable jumps and falls of what are called its prices, meaning the price of greenbacks. They are rather the pulsations of the public hope and fear concerning the national credit.”

To put the case as simply as possible, the new greenbacks the government issued in 1862 were not backed by gold, but they were placed on par value with bonds that were. The Union had not coin enough to pay its bills . . . It was patriotic to hold greenbacks, but even the truest patriot had himself and his family to feed. So rumors of distant battle, another Union defeat or embarrassment, would set many citizens scrambling for gold and speculators selling paper money short – or buying it in the belief a Union victory would send it soaring again.

The speculation that year was running insanely wild in New York and other financial centers, and I formed the idea that it was almost true patriotism to be what is called a “bear” in gold. I therefore went in, a little at first and then deeper . . . I had not the least idea that there was anything wrong in it for a fellow in my position . . .”

Stoddard had noted, as he did every day, the price of gold, selling at $132 per ounce, and it would go even higher if [General Ambrose] Burnside failed in Virginia. He had his eye on the stock exchange, especially the gold and currency markets, where he hoped to make his fortune.

Rumors of Lee’s rapid advance [into Pennsylvania] spread panic in the mid-Atlantic cities from Baltimore to Harrisburg, Pennsylvania. The price of gold had been rising as the result of Union defeats; now the fear of a Confederate invasion spread to the financial markets as well. The price of gold was soaring, and Stoddard – the shrewd gambler – was “shorting” the metal and piling up greenbacks . . . [and] had made a killing in the gold market.  

“Does the President take any interest in Wall Street gambling operations?” Stoddard asked rhetorically in his memoirs. “Of course he does, for the currency is the life of his policies.”

Over dinner one evening, they were discussing precious metals. “What is the price of gold this morning? Is it up or down? Lincoln asked his secretary. “Up Mr. Lincoln. The street is wild.”

“Well now,” the president replied, “they don’t know everything. If I were a bear on Wall Street, and if I were short of gold, I’d keep short. It’s a good time to sell.”

New York financier Clinton Rice testified that he made Stoddard’s acquaintance in 1862, when he told Rice “he enjoyed superior facilities for obtaining in advance all information of a political, official and diplomatic character likely to affect gold, stocks and other commodities. I entered into an arrangement with him [Stoddard] to furnish me telegraphic cipher dispatches.” Rice would use the information to invest in stocks or gold, and divide profits with Stoddard “share and share alike.”

As soon as there was “any important action of the Cabinet, or on receipt by the President or heads of departments of any important military or naval . . . operation” or diplomatic development, the secretary would wire Rice at once in cipher and the financier would place his bets. [Stoddard referred] to the “hollow” Union victory at Bristoe Station three weeks earlier, and how much the press had exaggerated the importance of the event. “I think I could run a gold line here better than anywhere else . . .”

(Lincoln’s Men: The President and His Private Secretaries, Daniel Mark Epstein, HarperCollins, 2009, excerpts pp. 100; 133; 135; 152; 172-173)

Both Generals George B. McClellan and John Pope considered each other incompetent: the former was a Democrat and therefore despised by Lincoln’s Radicals; Pope was a Republican and fawned upon by the same Radicals. Pope was dismissed after Second Manassas and achieved infamy in Minnesota with Sioux uprisings and the mass execution of 38 warriors – at Lincoln’s direction. Lincoln seemed unable to comprehend that those he called “the enemy” in the South were Americans, and tried to instill this in his commanders as they suppressed the American independence movement in the South. John Hay was one of Lincoln’s three personal secretaries. 

The Enemy the People

“Stanton railed against his former friend, McClellan. The man did nothing but send whining dispatches, complaints and excuses while flatly denying General Halleck’s orders to advance. At that point, Hay observed, both Stanton and Lincoln put their faith in General Pope.

Optimism prevailed in the White House at the end of the day [during the battle of Second Manassas], “and we went to bed expecting glad tidings at sunrise.”

But the next morning at eight o’clock, while Hay was dressing, a hollow-eyed, despondent Mr. Lincoln knocked at his bedroom door. “John!” he called . . . “Well John, we are whipped again, I am afraid. The enemy reinforced on Pope and drove back his left wing and he has retired to Centreville where he says he will be able to hold his men.”

As the day wore on, bringing more details of the defeat, Hay observed that Lincoln was just as defiant as he was disappointed. He kept repeating the phrase: “We must hurt this enemy before it gets away.” Church bells tolled over the city – a death knell.

The next morning it was pouring rain. Ambulances slogged through the mud with their burden of wounded and dying men on their way to Armory Square, Judiciary Square, Campbell Hospital, and thirty other military clinics recently set up around the city.

But when Hay acknowledged “the bad look of things,” Lincoln would hear no more of such talk. “Mr. Hay, we must whip these people now. Pope must fight them, if they are too strong for him he can gradually retire to these fortifications . . . if we are really whipped and to be whipped we may as well stop fighting.” Hay credited Lincoln’s “indomitable will, that army movements have been characterized by such energy and clarity for the last few days.” The President would not give in to despair.

[To Hay] it seemed impossible . . . [that McClellan] could write to the president proposing that “Pope be allowed to get out if his own scrape his own way.” A total of 1,724 Federal soldiers had died at the Second [Manassas], and 8,372 had lost arms, legs, eyes or had been otherwise mutilated by bullets or bayonets so as to be of no use to the army or anyone else for some time, if ever.”

(Lincoln’s Men: The President and His Private Secretaries, Daniel Mark Epstein, HarperCollins, 2009, excerpts pp. 119-122)

Patrick Henry of Virginia was one of the most vocal opponents of the constitution which eventually would supersede the Articles of Confederation. He predicted that members of Congress would become a new aristocracy and vote themselves large salaries; that national control over State militia was dangerous to freedom; that Northern commercial interests would menace the South. James Madison could only reply that the “Constitution was not perfect, but as good as might have been made.”

Southern Fears of Northern Interests

“The Virginia delegates returning from Philadelphia had hardly reached their firesides when a long campaign began against the Constitution. In letters, pamphlets and speeches there poured forth almost every conceivable argument against it. It contained no bill of rights, and its adoption would lead to the destruction of personal liberties; it would bring back monarchy; it would create a ruling aristocracy; and it protected the abominable slave trade.

But above all, the Constitution was a dagger aimed at the South, and its point must be blunted or avoided. It must be amended to protect against all these evils. Were it not possible to secure changes, Virginia must think of creating a Southern federation in which the rights of person, republicanism, and Southern interests would be effectively defended.

One of the more moderate enemies of the Constitution was Richard Henry Lee . . . [writing that] “the Constitution threatened Southern interests; and he emphatically declared that Congressional authority to regulate commerce was a menace to the South. Said he:

“In this congressional legislature a bare majority can enact commercial laws, so that the representatives of seven Northern States, as they will have a majority, can, by law, create the most oppressive monopolies upon the five Southern States, whose circumstances and productions are essentially different from theirs, although not a single man of their voters are the representatives of, or amenable to, the people of the Southern States . . . it is supposed that the policy of the Southern States will prevent such abuses! But how feeble, sir, is policy when opposed to interest among trading people.”

Far more forthcoming in denunciation was Benjamin Harrison, who wrote to Washington: “If the constitution is carried into effect, the States south of the [Potomac], will be little more than appendages to those northward of it. . . . In the nature of things they must sooner or later, establish a tyranny, not inferior to the triumvirate or centum viri of Rome.”

Equally vigorous language was used by George Mason [who] wanted amendments protecting both personal and States’ rights. He feared the Constitution would bring either oligarchy or monarchy and Northern dominion.

[Patrick] Henry . . . aroused the fears of men indebted to British merchants: those grasping enemy creditors who would make use of the Federal courts-to-be . . . [and that] the Northerners would control that government, and they would discriminate grievously against the Southern people whenever they could secure gain for themselves.”

(The First South, John Richard Allen, LSU Press, 1961, excerpts pp. 111-114)

In the early postwar and before the Fourteenth and Fifteenth Amendments were enacted, “many political, financial and religious leaders in the North had accepted the theory of rugged individualism as applied to the Negro” – Lincoln’s doctrine of “root hog or die.”

The freed slave was now a Northern-styled hired worker who could be worked long hours for meager pay and no medical or retirement benefits — plus had to survive on his own overnight before returning to work.

The value of the black man to the North was this: he who wandered into Northern lines after his plantation and crops were burned was put to hard labor on fortifications or used in forlorn assaults on impregnable Southern positions to save the lives of Northern soldiers; in the postwar he was taught to hate his white Southern neighbor for the purpose electing Republican candidates, no matter how corrupt, to maintain party hegemony both State and national.

It is noted below that the South had “ratified” the Fourteenth Amendment – the Southern States were under duress and the amendment unconstitutionally enacted without the requisite number of States ratifying.

Northern Ideology Victorious

“The American Civil War, as in the case of most wars, had been a conflict of ideologies as well as a trial at arms. The ideological conflict had revolved chiefly around the function of government, the nature of the union, the innate capacities of mankind, the structure of society, and the economic laws which control it. The triumph of the federal government automatically established the de facto status of that cluster of ideologies which shall be referred to as representing the point of view of the North and the de facto destruction of those ideologies typical of the South.

The history of Reconstruction amply bears out the fact that neither the North nor the South was consolidated in a united front on any of the great questions which had been the subject of controversy. The passage of the Fourteenth Amendment, for example, made it necessary for a number of Northern States to hastily change their laws in order to permit an equality of civil rights to Negroes, and it wasn’t until the passage of the Fifteenth Amendment that Negroes won the ballot throughout the North.

The act of writing into the Constitution the Fourteenth and Fifteenth Amendments was in itself an ideological revolution.

The South, with a ballot purged of the old slaveholding regime, had ratified the [Amendments], but it was not until 1876 that the South made its peace with Congress . . . After eleven years of attempting to bring the South into conformity . . . the federal government had retired from active participation in the experiment of the social revolution, leaving behind a Negro political machine protected by a legal equality and rewarded with federal patronage.

In the North the reaction had set in soon after the passage of the Fourteenth Amendment. The strong equalitarian sentiment of the Negrophiles and the general feeling that the Southern [freedmen] had become the wards of the nation had given rise to a profound sympathy for the Negro in the abstract, but the actual status of the northern Negro was little changed for the better.

As the rumor of misgovernment and fraud under Negro domination circulated in the North, the doctrine of the immediate fitness of the Negro for all the rights of citizenship came more and more to be questioned, and the way was rapidly being prepared for laissez faire in the South.

It came to be said in the North that the equality of man could be achieved only through the slow process of time and that the Negro offered a flat denial to the American assumption that all who came to this country’s shores would first be assimilated and then absorbed.”

(The Ideology of White Supremacy, Guion Griffis Johnson; The South and the Sectional Image, Dewey W. Grantham, editor, Harper & Row, Publishers, 1967, excerpts pp. 56-58)

The Republican party platform of 1860 was skillfully drawn to win support from East and West conservatives and radicals. It advanced a protective tariff for Northern industries, internal improvement subsidies, and the right of each State to control its own domestic institutions.

The Republicans were not anti-slavery, but opposed to its extension into the territories which they wanted preserved for their immigrant supporters.

What are referred to as “free States” of that period were actually “formerly free States,” as all the original States all inherited the British colonial slave-labor system. It follows that the Southern States of 1860 were all free States with a different labor system than the North.

It is important to point out that Lincoln carried no Southern States, and won election by plurality with only 39% of the vote. His party’s purely sectional character was what George Washington warned of in his farewell address.

Lincoln’s Momentous Decision

“Following the news of Lincoln’s election, South Carolina seceded from the Union in December of 1860. Senator Andrew Johnson of Tennessee, the poor white who would succeed Lincoln as President, denounced this act. “Whoever fires on our flag and attacks our forts I pronounce a traitor and he should meet a traitor’s doom.”

Davis retaliated by calling Johnson a “degenerate son of the South unworthy to sit in the Senate.” The die was cast: Davis argued before the Senate the Constitution right of secession.

Lincoln took the news of South Carolina’s secession calmly, but sent word to [Secretary of State William] Seward not to agree to the Crittenden Compromise, which would have preserved the Union without resort to war.

Commenting on Lincoln’s attitude, William E. Dodd wrote in his “Jefferson Davis”: “The popularity of the greatest war President has made students of the subject overlook his responsibility for this momentous decision.”

(The Iron Will of Jefferson Davis, Cass Canfield, Harcourt, Brace, Jovanovich, 1978, excerpts pp. 42-43)

Author John Vinson (below) asserts that “The motive for secession was not defending slavery, but defense against an aggressor trampling on States’ rights and local rule – the same principles for which the American Revolution was fought. The South fought not to keep slavery, but for the right to deal with the institution in its own way and time.”

Thomas Jefferson wrote in July 1775 that “In defense of our persons and properties under actual violation, we took up arms. When that violence shall be removed, when hostilities shall cease on the part of the aggressors, hostilities shall cease on our part also.”

Some eighty-seven years later, Jefferson Davis no doubt pondered Jefferson’s letter to John Randolph in August 1775: “I hope the returning wisdom of Great Britain will, ere long, put an end to this unnatural contest.”

Same Principles as the Revolution

“One more point to be made on freedom is to refute, briefly, the charge of professional South-haters that the Old South did not stand for freedom, but slavery. They allege that it was the cause for which the Confederacy went to war.

A few reflections on the past show this to be nonsense. Slavery came about during British rule. Southern colonists admittedly purchased slaves, but shipping and selling them were British and Yankee shippers.

New England grew rich from slave commerce. Africans who enslaved and sold their fellow Africans supplied cargoes for slave shippers. Following the American Revolution, sentiment against slavery grew in the South. Jefferson spoke out against it. By 1830, a majority of anti-slavery societies were in the South. Shortly thereafter, Virginia came within a few votes of abolishing slavery.

In 1833, the British Empire peacefully ended slavery. Certainly this could have happened in America. But it was not to be. Self-righteous fanatics in the North, the abolitionists, called the South wicked and demanded immediate emancipation, regardless of the consequences. As time went on some even encouraged slave revolt and a massacre of Southern whites.

Stunned and put on the defensive, the South dug in its heels, and the movement toward peaceful abolition stopped. No less a Unionist than Daniel Webster conceded that the South might have ended slavery had it not been for the abolitionists fanatic crusade.

In 1859, abolitionist John Brown was tried, convicted, and hanged after trying unsuccessfully to incite a slave revolt in Virginia. He had the backing of powerful Northern interests and a significant body of Northern opinion hailed him as a hero. The next year Abraham Lincoln, a president identified with the abolitionists, came to power in Washington.

At this point, many Southerners questioned allegiance to a Union that seemed indifferent to their rights and even safety. Initially the Upper South States of Virginia, North Carolina, Tennessee, and Arkansas refused to leave the Union.

The Lincoln government could have conciliated these States and perhaps defused the Southern independence movement. Instead, it provoked the Confederacy to fire on Fort Sumter, and then called for 75,000 volunteers to invade the South. Rather than participate in the invasion of their sister States, the Upper South withdrew.”

(Southerner, Take Your Stand, John Vinson, Shotwell Publishing, 2016, excerpts pp. 10-11)

For most of the eighteenth century, New York was second only to Charleston in slave population. By 1737, one if five New Yorkers were black; “between 1700 and 1774, the British imported between 6800 and 7400 Africans to the colony of New York. It was cheaper for New York slave traders to import directly from Africa . . .” (Slavery in New York, Berlin/Harris, pg. 61).

Slave insurrection was a constant menace as the British continued to import forced labor to work the colony. In late March 1712, New York and Westchester militia swept the Manhattan woods in search of 40 or 50 black men and women who had killed nine white people and wounded six more in an insurrection. “More than seventy enslaved men and women were eventually taken into custody, and forty-three were brought to trial by jury. Twenty-five were convicted, of whom twenty were hanged and three burned at the stake, one roasted in slow torment for eight hours” (pg. 78).

Early Militia in British America

“New England towns were more scattered than Chesapeake farms, but each town had the capacity for armed resistance that was lacking in an individual plantation. A town could bear the burden of a military draft and still hope to maintain itself from attack, while the loss of a man or two from a single, remote household often meant choosing between abandonment and destruction.

New England promised its soldiers plunder in the form of scalp bounties, profits from the sale of Indian slaves, and postwar land grants . . . But there remains an important difference: the clustering of manpower and the cohesive atmosphere in the town community gave New England greater military strength.

By the end of the seventeenth century, the principal threat to the British colonies was changing. Europeans – French and Spanish – became the main danger. Virginia found itself so little troubled by the new threat, and her Indian enemies so weak, that militia virtually ceased to exist there for about half a century, a time when a handful of semi-professional rangers could watch the frontier.

During the same period, the frontier of Massachusetts was under sporadic attack by French-supported Indians. [Carolina] occupied the post of danger against Spain. The Carolina militia came from the country to repulse a Spanish attack on Charleston in 1706, and it rallied – with some help from North Carolina and Virginia – to save the colony during the Yamassee War in 1715 . . . [when] four hundred Negroes helped six hundred white men defeat the Indians.

But as the ratio of slaves to whites rapidly increased, and especially after a serious slave insurrection in 1739, Carolinians no longer dared arm Negroes; in fact, they hardly dared leave their plantations in time of emergency.

The British government tried to fill the gap, first by organizing Georgia as an all-white military buffer, then by sending a regiment of regulars with Oglethorpe in 1740. But increasingly, the South Carolina militia became an agency to control the slaves, and less an effective means of defense.”

(A People Numerous & Armed: Reflections on the Military Struggle for American Independence, John Shy, University of Michigan Press, 1990, excerpts pp. 34-37)

The Ladies Association of Wake County, North Carolina was formed as the Northern commander in occupied Raleigh ordered Southern dead removed from their graves or he would have them dug up and the remains thrown into a nearby roadway. Gen. Lawrence ‘O’B. Branch’s wife, during the early occupation of Raleigh, overheard that all Southern officers above the rank of captain were to be hung, which included her husband.

Desecrating Graves in Raleigh

“The following extracts were made from a paper by Mrs. M.L. Shipp, in the woman’s edition of the [Raleigh] News and Observer, May 20, 1895, in regard to the most prominent association of the State: “The Ladies Memorial Association of Wake County was formed in 1865, when it was necessary to remove from the grounds of the Pettigrew Hospital the remains of the Confederate soldiers buried there.

It was but a short while after the federals took possession of Raleigh before the Mayor was notified that they admired the spot where rested he Confederate dead, and ordered that they be moved at once, or they would be thrown out in the country road.

A town meeting was called, and the association formed, Mrs. L. O’B. Branch being made President . . . A resting place [at Oakwood] was selected for the reinterment of the beloved dead, and, with the help of the young men and boys of the town, the work was successfully accomplished. The graves were comparatively few at first, but none were safe from Sherman’s “bummers,” as there was scarcely a new-made grave anywhere but what was opened by these men, in search of treasures . . .

Many Confederate dead from the country were moved this spot, and the grounds were laid off and improved by [Sergeant] Hamilton, a soldier of the Confederate army who lost both eyes from a wound. To raise funds to care for the Confederate dead and erect a monument to their memory . . . it was reported that contraband articles such as Confederate flags, a strand of Gen. Lee’s hair, pictures of President Davis or any Confederate general . . . [the constant fear was] the sudden appearance of a bluecoat with orders to search the room for these contraband articles.”

(Women of North Carolina, Confederate Veteran, May 1898, excerpts pg. 227)

“General Leonidas Polk and his staff met with Union officers under a flag of truce in November 1861.

After disposing of matters of business, the men adjourned for a simple luncheon. A Union colonel raised his glass and proposed a toast, “To George Washington, the Father of His Country.”

To that toast General Polk quickly added: “And the First Rebel.” All officers drank to the amended toast.”

(An Essential Amendment, Southern Partisan, Volume XXIV, Number 2, pg. 11)

The 4th US Colored Infantry was recruited in Baltimore with enrollment agents scouring the city, though “many of the city’s residents . . . reluctant to enlist – perhaps [because] so many had been dragooned into service by [General Robert] Schenck.” The latter impressed local slaves and free blacks into service at will to defend the city from liberation.

Many of the black recruits were forcibly removed from area farms and plantations, and in late July 1863 authority was granted to remove the inmates of a slave prison in the city for use as soldiers.

Any “able-bodied black male of military age owned “by an avowed Confederate or Rebel sympathizer” was subject to impressment. Lincoln’s proconsul in Maryland was “Governor” Augustus W. Bradford, a slave owner and committed Unionist who was allowed to keep his slaves.

These black recruits received no bounty as white troops had, and only white officers were allowed to command black units.  Lincoln added black men to his conscription net, and poor black men could not afford the $300 substitute fee to avoid service.  

Undisciplined Troops

“[General Joseph E.] Johnston’s surrender immediately placed the Union forces in North Carolina on occupation duty. Now that hostilities were officially ended, it was feared the USCT might break free of wartime restraints to trespass, assault and loot. [Colonel Samuel] Duncan was enjoined to place a guard at virtually every house on his route [to Goldsboro . . . [indicating] the low opinion that their own commanders sometimes entertained of the discipline and deportment of the USCT.

By the end of 1865 – five months after the XXIV Corps had officially ceased to exist – only a handful of Caucasian regiments in the Army of the James remained in the field. These units would be mustered out the following January and February. Much of the army’s USCT strength, however, would be kept on active duty for almost another year.

The War Department knew that if it were to keep white volunteers in service well beyond their appointed term of “three years or the duration of the war,” it risked the wrath of voters and their political representatives.

Not surprisingly, the War Office preferred to alienate African American troops, few of whom could vote and even fewer who wielded political power. Moreover, many black soldiers – especially former slaves – had no homes to return to once they left the service. They would be unlikely to object to being kept on the army’s payroll indefinitely. The 4th USCI served out its two final months of garrison duty in relative tranquility [at Washington]. There the formal process of mustering out the regiment took place on the morning of May 4, 1866.”

(A Regiment of Slaves: The 4th United States Colored Infantry, 1863-1866, Edward G. Longacre, Stackpole Books, 2003, excerpts pp. 165; 170-171)