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Achieving Southern Destiny

Washington warned that sectional animosity would endanger the new Union; by 1826 both Jefferson and Adams deplored the loss of republican direction provided by the revolutionary generation. The tariff controversy of the early 1830s ignited the fire that would not be quelled until 1865, though the Constitution and the Union were destroyed in the process.

Bernhard Thuersam, www.Circa1865.com

 

Achieving Southern Destiny

“[Henry] Clay’s campaign for his “American System” drew fire mainly from the South Carolinians.

In 1827, Robert J. Turnbull, under the pseudonym of Brutus, published a series of thirty-three articles in the Charleston Mercury, and promptly issued them in a pamphlet entitled “The Crisis: Or Essays on the Usurpation of the Federal Government,” which he dedicated “to the people of the “Plantation States” as a testimony of respect, for their rights of sovereignty.”

Turnbull vehemently urged the people of the South to face the facts, to realize that the North was beginning to use its control of Congress for Southern oppression by protective tariffs and otherwise; and he proposed as a remedy that South Carolina should promptly interpose her sovereignty, and safeguard Southern interests, by vetoing such congressional acts as she should decide to be based upon Federal usurpations and intended for Northern advantage at the cost of Southern oppression.

“. . . William H. Trescott’s “The Position and Course of the South” [was] an embodiment of the soundest realization of the sectional conditions of the Southern section in the closing decade of the ante-bellum period. The author, a leading, experienced, conservative citizen of South Carolina, states in his preface, dated Oct. 12, 1850, that his purpose is to unify the widely separated parts of the South.

He says his views are not new, but they are characteristically Southern: “We are beginning to think for ourselves, the first act toward acting for ourselves.” The essay begins with an analysis of industrial contrasts.

The political majority of the North represents labor; that of the South, capital; the contrast is violent. Free labor hates slave labor, and it will overturn the system if it can. The two sections with many contrasting and conflicting characteristics are combined under the United States Constitution, but they are essentially irreconcilable. Even in foreign relations the North is jealous of foreign powers for commercial and industrial reasons, while Southern industry is not competitive with, but complementary to European industry and commerce, and the South, if a nation by itself, would be upon most cordial terms with foreign powers.

“The United States government under the control of Northern majorities must reflect Northern sentiment, sustain Northern interests, impersonate Northern power. Even if it be conceded that the South has no present grievance to complain of, it is the part of wisdom to consider the strength and relations of the sections, and face the question, what is the position of the South? In case our rights should be attacked, where is our constitutional protection? The answer is obvious.

But one course is open to her honor, and that is secession and the formation of an independent confederacy. There are many men grown old in the Union who would feel an honest and pardonable regret at the thought of its dissolution. They have prided themselves on the success of the great American experiment in political self-government, and feel that the dissolution of the Union would proclaim a mortifying failure. Not so.

The vital principle of political liberty is representative government, and when Federal arrangements are discarded, that lives in original vigor. Who does not consider the greatest triumph of the British constitution the facility and vigor with which, under slight modifications, it developed into the great republican government under which we have accomplished our national progress. And so it will be with the United States Constitution.

We believe that Southern interests demand an independent government. We believe that the time has come when this can be established temperately, wisely, strongly. But in effecting this separation we would not disown our indebtedness, our gratitude to the past. The Union has spread Christianity, fertilized a wilderness, enriched the world’s commerce wonderfully, spread Anglo-Saxon civilization. “It has given to the world sublime names, which the world will not willingly let die — heroic actions which will light the eyes of a far-coming enthusiasm. It has achieved its destiny. Let us achieve ours.”

(History of the Literary and Intellectual Life of the Southern States (Vol. VII), Ulrich B. Phillips, Southern Historical Publication Society, 1909, pp. 193-198)

 

Theories of Conflict and Higher Law

Many in the antebellum South viewed the theories advanced by abolitionists and the new Republican Party as threatening the Union they wished to remain in and forcing their withdrawal. As South Carolina was threatened with coercion in 1832 over nullification, those in the South wondered why the Northern States which nullified federal laws were not threatened with coercion – which well might have impelled those Northern States to secede.

Bernhard Thuersam, www.Circa1865.com

 

Theories of Conflict and Higher Law

“But whatever the real issue between the sections in the territorial dispute, there was no doubt, in the South at least, of the sectional objectives in defending or in opposing two new theories developed in the North during the decade of the fifties.

These were the theories of the “irrepressible conflict” and of the “higher law.”

Both were considered by the South to be incompatible [with the United States Constitution] . . . both were soundly denounced as a direct infringement of the principle of constitutional guarantees.

The theory of the “irrepressible conflict” was the joint product of Abraham Lincoln’s address before the Republican State Convention in Illinois, delivered on June 16, 1858, and of William Seward’s “Irrepressible Conflict” speech delivered at Rochester, New York, October 25, 1858.

This theory was denounced by every legitimate agency in the South from county assemblies to State conventions. On December 2, 1859, the General Assembly of Tennessee resolved “that we recognize in the recent outbreak at Harper’s Ferry the natural prints of this treasonable, “irrepressible conflict” doctrine put forward by the great head of the Black Republican party and echoed by his subordinates.”

The second of these theories — the theory of the higher law – [was championed by] William Seward of New York.

This theory doubtless sprang from the ranks of the abolitionists in the latter thirties, for as early as June 15, 1841, Representative Kenneth Raynor of North Carolina attacked the position of John Quincy Adams on the slavery question because he “has thrown aside law and Constitution, and has dared to put the issue of this question upon the high and impregnable ground of the Divine law”, a position which Raynor declared “sweeps away everything like human compact and rests the mutual rights of men on what the imagination of fanaticism may picture to itself as a Divine requirement.”

In February 1851, Robert Toombs discovered that a “great question is rising up before us [to] become a “fixed fact” in American politics. It is . . . sometimes called the higher law, in antagonism to our constitutional compact. If the first (i.e, higher law) succeeds, we have no other safety except in secession; if the latter (i.e, the constitutional compact succeeds) “liberty and Union, may be forever one and inseparable.”

Before the end of the following year, the “fixed fact” had found definite expression from the pen of William Hosmer in a volume of some two hundred pages entitled, The Higher Law. Within those pages, the author makes the following contention: “Men have no right to make a constitution which sanctions slavery, and it is the imperative duty of all good men to break it, when made . . . the fact that a law is constitutional amounts to nothing, unless it is also pure . . .”

On February 18, 1861, Fulton Anderson, commissioner from Mississippi to Virginia, warned the Virginia Convention that an “infidel fanaticism, crying out for a higher law than that of the Constitution . . . has been enlisted in this strife”; and in the Alabama Convention of that year L.M. Stone maintained that the “triumph of a Higher Law party, pledged to the destruction of our Constitutional Rights, forced us to dissolve our political connection with [the] hostile States.”

(The South As A Conscious Minority, Jesse T. Carpenter, New York University, 1930, pp 157-160)

Moral Tormentors

Moral Tormentors

“Of all the tyrannies, a tyranny exercised for the good of it victims may be the most oppressive. It may be better to live under robber barons than under omnipotent moral busybodies. The robber baron’s cruelty may sometimes sleep, his cupidity may at some point be satiated; but those who torment us without end, for they do so with the approval of their consciences.”  C.S. Lewis

 

 

Undermining the Constitution

Thomas J. Norton notes below in 1951 that Congress has no authority to “lend money or to give it away” – and cites James Madison’s warning of paper barriers being insufficient to stop evil persons in government. Jefferson Davis stated in 1881: “Of what value then are paper constitutions and oaths binding officers to their preservation, if there is not intelligence enough in the people to discern the violations, and virtue enough to resist the violators?”

Bernhard Thuersam, Circa1865.com

 

Undermining the Constitution

“The Constitution gives power to Congress (1) “to coin money” and (2) “to borrow on the credit of the United States” — but not to lend money, or to give it away, either at home or abroad.

What is expressed in a Constitution is equivalent to a prohibition of what is not expressed. The powers over money mentioned are the only ones that the Constitutional Convention brought in from the world of inherent powers and fixed in the Fundamental Law.

Those specifications reject the theory of unlimited powers exercised by European monarchs in 1787. Not long before that, Louis XIV had kept Europe embroiled in wars by loans or grants of money to belligerent rulers. Did the Constitutional Convention, at least one member of which was born in his reign, intend to give that power to Congress? It did not say so. The power was therefore withheld by the people from their servants.

The United States is now, without authority — under a denial of authority — lending or granting money to Europe, and to the rest of the world. Postwar programs, twenty-two in number, for aiding foreign nations, in addition to the military aid program, have piled on top of the costs [330 billion] of [World] War II $30,757,000,000, according to Senator Byrd of Virginia, speaking in September 1949.

Thus, the limitations of the Constitution become what Madison gave warning of — “paper barriers.”

(Undermining the Constitution: A History of Lawless Government, Thomas James Norton, Devin-Adair Company, 1951, page 22)

Southern Historians Sapping and Mining the Northern Myth

Historian and author Frank L. Owsley dedicated his professional life to righting the revisionist history of postwar Northern textbooks and relating an honest appraisal of why the War was fought between North and South. He viewed the conflict of 1861 as a struggle between Southern agrarian culture versus Northern industrialism intent upon political and economic control of the entire country.

Bernhard Thuersam, www.Circa1865.com

 

Southerners Sapping and Mining the Northern Myth

“In describing the writings of one New Southerner, Frank Owsley wrote Allen Tate on February 29, 1932: “He is the typical “New Southerner,” the defeated [and] conquered . . . American. Dodd [William E. Dodd, Frank’s major professor at Chicago] remarked to me that it did not hurt him so much to be whipped! Or to see the South whipped! What broke his heart was to see the South conquered . . . he says it is the most completely defeated and conquered people of all history.”

Frank continued: “I believe that the spiritual and intellectual conquest of the South, which Dodd laments, is superficial. The leadership is in the hands of [these New Southerners] . . . and the history textbooks have been written by Yankees.

The purpose of my life will be to undermine by “careful” and “detached,” “well-documented,” “objective” writing the entire Northern myth from 1820-1876. My books will not interest the general reader. Only the historians will read them, but it is the historians who teach history classes and write textbooks and they will gradually, and without their own knowledge be forced into our position. There are numerous Southerners sapping and mining the Northern position by objective, detached books and Dodd is certainly one of the leaders.

By being critical first of the South itself, the Northern historian is disarmed, and then Dodd hits where it will do the most good . . . [Dodd told Davidson] that the younger Southern writers were making the Northern writers look unimportant.”

Frank’s essay in I’ll Take My Stand, “The Irrepressible Conflict,” concerned “the eternal struggle between the agrarian South and the commercial and industrial North to control the government, either in its own interest, or negatively, to prevent the other section from controlling it in its interests.”

At the time the Union was formed, the two sections were evenly balanced both in population and in number of States. The conflict worsened as the balance of power began to change. Slavery was an element of the agrarian society, but not an essential one. Even after the war, when there was no slavery, the South was an agrarian section. The irrepressible conflict was not a conflict between slavery and freedom, nor was it merely a protest against industrialism. It was equally a protest against the North’s brazen and contemptuous treatment of the South “as a colony and as a conquered province.”

(Frank Lawrence Owsley, Historian of the Old South, Harriet C. Owsley, Vanderbilt University Press, 1990, pp. 78-81)

Audacious Caesars and Test Oaths

On December 7, 1861, former Governor William A. Graham of North Carolina spoke in Convention in opposition to his State requiring a test oath for its citizens. In April 1865, after being overwhelmed by military force,  North Carolinians were forced to swear an oath to the government of the United States, and could not conduct business nor public affairs without taking this oath.

Bernhard Thuersam, www.Circa1865.com

 

Audacious Caesars and Test Oaths

“Mr. President, if this Convention, like a French National Assembly, were to declare itself in permanent session, and abrogate all the powers of government, it would give no greater shock to public sentiment, and make no more dangerous stride towards despotism, than would be effected by this [test oath] ordinance.

What, then, will be their surprise, not to say indignation, if this ordinance shall pass, and they are told that no man can ever vote again – nay, that no man will be allowed to remain in the State, but everyone will be exiled who does not take an oath that the Convention has ordained?

Sir, every North Carolinian rejoices in the idea, that, like St. Paul, he was free-born. And, although his freedom was purchased at a great price, no less than the blood of his fathers shed in every battle-field of American independence, from the shores of the Hudson to the everglades of Florida, it came to him as an inheritance, the more valued, because of its association with his ancestral pride and glory.

His right to dwell in and breath the pure air of the land of his birth; his right to participate in the election of rulers, and, if it suit his inclination and the will of the majority, to be himself invested with a portion of the powers of the republic, he will suffer neither to be taken away nor trifled with.

He did not acquire them by an oath, and he will spurn any oath offered to him as a condition of their continued enjoyment. It is one of those blunders characterized by Talleyrand as worse than a crime, for statesmen by their measures will encroach upon and offend so sacred a feeling as the pride of nativity – the self-respect and manhood of a high-spirited and free-born American.

Sir, the people when presented with this oath, will turn upon this Convention, and inquire “upon what food have these our Caesars,” at Raleigh, “fed, that they have grown so great?” We thought they were our servants; how have they become our masters?

We had a free election according to the usages and Constitution of our fathers when we chose them as our representatives; by what legerdemain, by what audacity, do they declare that we shall never vote again . . . nor inhabit our present homes, but shall be driven out as fugitives and vagabonds, unless we take an oath that they have dictated?

We render to the government our loyalty and duty, as we cherish and support our wives and children, and perform other obligations as members of society; but we will take no oaths upon compulsion, to bind us to those duties, and least of all, an oath that is accompanied by the polite alternatives of exile or degradation.

Mr. President, the very mention of a test oath carries us back to the “bigot monarchs and the butcher priests” of the days of the Tudors and Stuarts, and beyond these, to the Inquisition itself. It is a device of power in Church and in State, to perpetuate itself by force, against free discussion and inquiry, and in defiance of what in more liberal times we call public sentiment.”

(The Papers of William A. Graham, Volume V, 1857-1863, J.G. Hamilton, Max Williams, editors, NCAH, 1973, excerpts, pp. 314-317)

 

Scotch Presbyterian Conscience versus Piles of Gold

Woodrow Wilson’s offer of mediation between Britain, France and Germany came some 45 years after Britain and France offered to mediate the conflict between America’s North and South. Lincoln threatened war should they intervene. Lincoln also came to realize the vast money power he had unleashed with war as business interests colluded with government, which led to the postwar Gilded Age. Wilson was elected to stay out of the European war but succumbed to the money power Lincoln had unleashed, and more dark forces drew him into war though a negotiated peace was fully possible. Sadly, with American intervention and Allied victory came the rise of a German national socialist party and many more American dead.

Bernhard Thuersam, www.Circa1865.com

 

Scotch Presbyterian Conscience versus Piles of Gold

“Woodrow Wilson returned to Washington after the 1916 [presidential] campaign convinced that his mandate from the nation demanded the immediate formulation of peace terms which must somehow be forced on the warring powers.

Physically he was worn out. His sick headaches continued to worry [wife] Edith and Dr. Grayson. His head still spun with the clamor of political oratory.

He felt that British and French dependence on American supplies and American credit might give him a whip hand over the Allies if he could only find how to apply it. One third the world’s gold supply was already piled up in the vaults of American banks. “We can determine to a large extent who is to be financed and who is not to be financed,” he had told an audience gathered at Shady Lawn during the campaign.

He summoned the confidential colonel [Edward M. House] to the White House to resume his last winter’s intrigue for mediation. For once House balked. He was convinced the United States should already have intervened on the side of the Allies. Peace now could only be to Germany’s advantage: “I argued again and again that we should no pull Germany’s chestnuts out of the fire.” They broke up late. Neither man would budge from his position.

House’s point was that the German’s now wanted mediation and were holding the threat of a renewed submarine campaign over the world’s head to obtain a victorious peace. “In my opinion,” House noted . . . “the President’s desire for peace is partially due to his Scotch Presbyterian conscience and not to personal fear, for I believe he has both moral and physical courage.”

Like any oldtime Covenanter Wilson believed in the efficacy of the word. By the right word men could be brought to see the light. The war was making the position of neutrals intolerable.

[He wrote] that the warring nations were all fighting, so they claimed, “to be free of aggression and of peril to the free and independent development of their people’s lives and fortunes . . . must the contest be settled by slow attrition and ultimate exhaustion?” he asked. “An irreparable damage to civilization cannot promote peace and the secure happiness of the world.”

(Mr. Wilson’s War, From the Assassination of McKinley to America’s Rejection of the League of Nations, John Dos Passos, Hamish Hamilton, 1963, pp. 189-190)

 

Wilson’s Ideals Shattered by Bolshevism

Woodrow Wilson’s dream of a new world order to end all war was shattered by the scramble for territory, industrial machinery and reparations from a Germany defeated by American troops Wilson had promised voters he would not send into a European war. Within his idealism lay a benevolent collectivist view of the world, not much different than socialist Eugene Debs who he had imprisoned under the Espionage Act.

Bernhard Thuersam, www.Circa1865.com

 

Wilson’s Ideals Shattered by Bolshevism

“Woodrow Wilson’s first wife’s brother Stockton Axson, then serving as Secretary of the American Red Cross, was a frequent visitor [in the summer of 1918]. Dr. Axson remembered a conversation they had one Sunday afternoon in late June of that year . . . When Axson and the Wilson’s were alone after the meal, Wilson suddenly asked him whom he would name for the next President.

Axson suggested William McAdoo. [Wilson] said Newton D. Baker was the best man but he could never be nominated. “The next President will have to be able to think in terms of the whole world,” he went on. “He must be internationally minded . . . the only real internationally minded people” – Wilson was thinking aloud –“are the labor people. They are in touch with world movements.”

After the war the world would change radically. Governments would have to do things now done by individuals and corporations. Waterpower, coalmines, oilfields would have to be government owned. “If I should say that outside,” he exclaimed, “people would call me a socialist. And it is because I’m not a socialist that I believe these things.”

He added that he believed this was the only way communism could be prevented – Dr. Axson told Ray Baker he wasn’t sure Wilson used the word communism, which wasn’t yet in circulation, perhaps he said Bolshevism – “the next President must be a man who is not only able to do things, but after having taken counsel and made a full survey, be able to retire alone, behind his own closed door, and think through the processes, step by step.

At home, now freshly stimulated by Bolshevik propaganda against capitalism and war, there was than “baneful seething among the working class and the foreign born that never ceased to worry him. There was the troublesome agitation for the pardon of the syndicalist Tom Mooney convicted of bombing a [war] preparedness parade in San Francisco . . . Strikes kept interrupting war production.

From Americans in Russia came conflicting reports. Some saw in the Bolshevik government merely a final phase of the revolutionary upheaval destined to pass away in a few months like the Jacobin terror that ended the French Revolution. Others saw in it the foundation of a new social order. Ever since the Bolshevik seizure of power had shattered his dream of a democratic Russia he had been allowing the news from that revolution-torn empire to pile up against some closed door in his mind.”

(Mr. Wilson’s War, From the Assassination of McKinley to America’s Rejection of the League of Nations, John Dos Passos, Hamish Hamilton, 1963, pp. 373-375)

The Atomic Jolt Forward for City Planners

The US armed the Soviet Union to the teeth as an ally against Germany, in the process creating a postwar enemy it has spent trillions combatting. The atomic age also spurred city planners into central planning action to disperse city inhabitants which triggered urban blight and suburban sprawl. Jefferson wrote: “I view great cities as pestilential to the morals, the health and the liberties of man”; and noted that “the inhabitants of the commercial cities are as different in sentiment and character from the country people as any two distinct nations, and are as clamorous against the order of things [republicanism] established by the agricultural interest.”

Bernhard Thuersam, www.Circa1865.com

 

The Atomic Jolt Forward for City Planners

“In the atomic age, [a] report concluded, it was the nation’s newspapers that would “set the pattern and pace” of the public’s scientific knowledge and hence determine its ability to make informed decisions on life-and-death issues.”

City planner Tracy B. Augur told the American Institute of Planners in 1946 that the planning profession had a crucial role to play in guiding the urban dispersal being widely advocated as a civil defense measure. If properly conducted, he said, such a project would involve not just piecemeal resettlement [of Americans outside cities], but a whole new urban planning approach.

The starting point, he went on, was for experts to define “the qualities of social life that are worth having” and then to “plan the kind of urban structure that will make them more fully possible.” Demonstrating the readiness of his profession to rise to this challenge, Augur presented a series of charts showing how a “typical city of half a million could be rearranged from a concentrated to a dispersed form without weakening its capacity to function as a single metropolitan unit.”

Such a systematic attack on the problems of the city, Augur insisted, was in any case overdue. “Long before the threat of the atomic bomb,” he said, urban planners had warned of the need for comprehensive programs to save the American city from “the blight . . . gnawing at its innards” and to convey to the larger society their dream of a totally-planned urban environment. Now suddenly Hiroshima and Nagasaki had propelled the question of the urban future to the top of the public’s agenda.

In the realm of city planning, Augur concluded hopefully, “the threat of atomic bombing may prove a useful spur to jolt us forward!”

At long last, city planners would assume the central social role they had long sought. Having lost the public ear after their heyday in the Progressive Era, city planners, under the spur of the atomic threat, would finally take charge of urban development and guide it along rational lines.

In a 1947 address to the National Recreation Association, a longtime activist in the park and playground movement painted the familiar grim picture of mass leisure in the atomic age, but hastened to offer a solution: “The answer to all this is, of course, Education and Recreation.”

The government must take the lead, he said, in expanding the nation’s recreational resources, including “parks and playgrounds, game reserves, public theaters, opera houses, orchestras, [and] hobby centers.”

Echoing Tracy Augur’s message to the city planners, this speaker assured the recreation specialists that their profession would be crucial to society’s survival in the era of atomic energy. “Unless ability to make wise use of leisure increases,” he insisted, “there is no doubt that our civilization is doomed.”

However implausible and even comic such views seem in retrospect, they were advanced in all earnestness in the perfervid post-Hiroshima cultural climate.”

(By the Bomb’s Early Light, American Thought and Culture at the Dawn of the Atomic Age, Paul Boyer, UNC Press, 1994, pp. 152-153)

The Anticipated Profits of Next Year’s Pay Checks

Lincoln instituted a national banking system which “developed into something that was neither national nor a banking system” and more represented a loose organization of currency factories “designed to . . . [serve] commercial communities and confined . . . almost entirely to the New England and Middle Atlantic States.” This system was more concentrated in New York and fraught with abuses, and superseded by the even more abusive Federal Reserve Act of 1913.

Bernhard Thuersam, www.Circa1865.com

 

The Anticipated Profits of Next Year’s Pay Checks

“July 3, 1930

Mr. McFadden: “Mr. Speaker and gentlemen, time and events have arrived at a point where we should no longer deceive ourselves concerning the business situation. Continued statements of unfounded optimism will have only an unhappy effect upon the minds of millions of our citizens who are now unemployed and who, in the circumstances, must continue to be unemployed for many months to come. The economic condition in which we find ourselves is too sustained and deeply seated to be met by pronouncements that it does not exist.

Let us face the truth – that we and the world are undergoing a major economic and business adjustment which is and will be both drastic and painful. These consequences will be particularly severe in the United States, because they will force many people to recede from the standards of living and expenditure attained during the past 14 years.

Some part of this condition is the natural consequence of the operation of basic economic laws which function with little regard for human legislation. A large part is due to mismanagement of our national affairs. A still larger part is due to a deliberately contrived and executed program which has as its object the impoverishment of the people of the United States.

The end of the World War found us with a greatly expanded industrial and credit structure, to large, by far for the requirements of our national needs as the latter existed before the beginning of the war period of abnormal consumption. It was clearly a time to halt and to analyze fundamental economic facts. We did not do this.

Rather we chose to proceed with our abnormal production and to stretch the limits of credit still further. War production and its profits had made Americans drunk with power, and ambition for more power. Luxuries developed in the disorganization of war became necessities with the reestablishment of peace.

The American peop0le entered upon a decade in which the whole structure of their lives was to be passed upon the principle of discounting the future. A vast system of installment credit sprang into life almost overnight, aided by the optimism of the Federal Reserve system. The automobile industry expanded more rapidly and to greater size than any industry had expanded in history.

The public was encouraged by advertising and propaganda to buy beyond its immediate means. Further industrial expansion was financed by the same expansion of credit which made installment buying possible. Consumption was expanded and financed upon the consumer’s promise to pay and production was expanded upon by capitalizing the producer’s hope that the consumer would keep that promise.

In the period between 1920 and the present time we experienced the full use and purpose of the credit machinery built up with the Federal Reserve system. It was but a logical development that anticipated profits should be capitalized as anticipated production and consumption had been capitalized – and that the Federal Reserve system should in turn finance tis capitalization of anticipated profits.

The entry of millions of Americans of moderate means into stock-market speculation [was] a natural consequence of the policy of expansion to which we had committed ourselves. It was also a logical development that the Federal Reserve should expand broker’s loans to make possible a huge inflation of the business of speculating in securities on margins.

All this brought the country to a point where the individual was living beyond his personal means, buying more than he could afford on his hope that he could afford to pay for it in the future and then speculating in the hope that he could make enough profit to pay his debts when they came due. In brief, the greater part of the American business structure was built upon the anticipated profits of next year’s pay checks.”

(Basis of Control of Economic Conditions, the Collective Speeches of Congressman Louis T. McFadden, Omni Press, 1970 pp. 64-66)