Circa1865

Lincoln appointed no men to his cabinet who were familiar with Southern sentiment or sensitivities – an act which might have avoided a collision and perhaps have truly “saved the Union.” The Republican Party won the contest and would not be denied the fruits of victory no matter the cost. Charles Francis Adams was appointed minister at London by Lincoln, somewhat appropriate as Adam’s grandfather himself viewed the presidency as monarchical. More important, Adams was a Republican politician with little regard for the American South and put party above the welfare of the country.

Bernhard Thuersam, www.Circa1865.com

“They Have Made a Nation”

“For the post at London Lincoln had made one of his best appointments. As a boy [Charles Francis Adams] had witnessed stirring events in Europe; in the company of his mother he had taken the long and arduous winter journey by carriage from St. Petersburg to Paris to join his father John Quincy Adams. Passing through the Allied lines, he reached Paris after Napoleon’s return from Elba.

By 1861 he had served as legislator in Massachusetts, had become prominent as a leader of the “conscience” Whigs and the Free-Soilers, and had achieved the position of an influential leader of the national House of Representatives where his main contribution was as a moderate Republican earnestly engaged in the work of avoiding war.

Though depressed at the nomination of Lincoln, whom he never fully admired, he accepted appointment as minister to England and gave of his best as a loyal servant of the Lincoln administration.

Through all the diplomatic maneuvers there ran the central question of recognition of the Confederacy and the related questions of mediation, intervention and the demand for an armistice. Had the South won on any of these points, victory would have been well-nigh assured. By September of 1862 [Lord] Palmerston and Russell’s deliberations had reached the point where, in view of the failures of McClellan and Pope and the prospects of Lee’s offensive, Palmerston suggested “an arrangement upon the basis of separation” (i.e., Southern victory); while Russell, the foreign minister, wrote in answer that his opinion the time had come “for offering mediation . . . with a view to the recognition of the independence of the Confederates.”

[Just] at this juncture there came a bombshell in the speech of the chancellor of the exchequer, W.E. Gladstone, at Newcastle (October 7) in which he said:

“Jefferson Davis and other leaders of the South have made an army; they are making, it appears, a navy; and they have made what is more important than either, — they have made a nation . . . We may anticipate with certainty the success of the Southern States so far as regards their separation from the North.”

(The Civil War and Reconstruction, James G. Randall, D.C. Heath & Company, 1937, pp. 461-462; 468-469)

The victorious North installed a native proconsul in 1865 to rule North Carolina, who acceded to the various constitutional fictions emanating from the radical Northern Congress. That proconsul acted as if no military overthrow of free government had taken place in his own State, and committed treason by adhering to the enemy. North Carolina and the South were ruled by “Vichy” regimes emanating from Washington, as France later be ruled from Berlin.

Bernhard Thuersam, www.Circa1865.com

Vichy Rule in North Carolina

“In obedience to the proclamation of Provisional Governor [William] Holden, the State Convention met at noon on Monday, the 2^nd instant [2 October 1865]. The permanent President is Honorable E.G. Reade, of Person County. He is regarded as one of the best jurists in the State, was a Whig and an opponent of secession and State rights, and is now provisional judge of the eighth circuit by appointment of the Governor.

The Governor’s message came in on the second day. He takes it for granted that the Convention will recognize the abolition of slavery, provide that it shall not be re-established, and submit the amended Constitution to a vote of the people. [Governor Holden stated:]

“North Carolina attempted, in May 1861, to separate herself from the Federal Union. This attempt involved her, with other slaveholding States, in a protracted and disastrous war, the result of which was a vast expenditure of blood and treasure on her part, and the practical abolition of domestic slavery. She entered the Rebellion a slaveholding State, and emerged from it a non-slaveholding State. In other respects, so far as her existence as a State and her rights as a State are concerned, she has undergone no change.

Allow me to congratulate you, gentlemen, upon the favorable circumstances which surround you, while engaged in this great work of restoring the State to her former and natural position. It is my firm belief that the policy of the President in this respect, which is broad, as liberal, and as just as the Constitution itself, will be approved by the great body of the people of the United States . . . our State will enjoy, in common with the other States, the protection of just laws under the Constitution of our fathers.”

(The South Since the War: As Shown by Fourteen Weeks of Travel and Observation in Georgia and the Carolinas, Sidney Andrews, Ticknor and Fields, 1866, pp. 133-134)

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

Bernhard Thuersam, www.Circa1865.com

The War for Tariffs, Taxes and Astonishing Profits

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

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Voodoo Economics Circa 1864

[Diary Entry] July 2, 1864:

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

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

[Diary Entry] July 5, 1864:

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Vote for Abraham Lincoln!

[Diary entry] Chicago, November 5, 1864:

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

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

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

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

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

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

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

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

Bernhard Thuersam, www.Circa1865.com

Reconstruction, the Most Shameful Period of Our History

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

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

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

And again he said:

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

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

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

The War Against Reason

“June 7 [1861], Crawfordville [Georgia]:

From present indications it would seem that we did not cut loose from the North too soon. They will go into anarchy or despotism, The only hope for constitutional liberty on this continent is now with us; and whether we shall successfully pass through the ordeal in store for us time alone can determine.”

September 3 [1861]:

“I see no end to the war – not the slightest prospect of peace. So far from it, all the signs of a protracted conflict are more portentous to me than they have even been. The war on the part of the North is founded on no rational principle. It is against principles, against interest, and against reason; and with nations it is as with individuals when they act against reason, there is no accounting for their conduct or calculating upon it on any rational principles.

This is but the beginning. The guillotine, or its substitute, will soon follow. The reign of terror there has not yet fully commenced. The mob, or “wide-awake” spirit, has not the control there yet, but it will have before the end. All the present leaders will be swept from the board. They will be deposed or hung to make way for worse men who are yet to figure in this great American drama . . . We have a great conflict before us, and it will require all our energy, our resources, and patriotism, under a favoring Providence, to bear us safely through it.”

(Life of Alexander H. Stephens, Richard M. Johnston & William H. Browne, J.B. Lippincott & Company, 1883, page 407)

Abolitionist Moncure Conway saw deeper into the question of immediate emancipation than most of his contemporaries. He rightly sensed that the more fierce the North’s desire to subjugate the South became, the more the black man would be used as a weapon to achieve their goal of political supremacy. The postwar Union League which incited Southern blacks against their white neighbors followed this stratagem, against which the Ku Klux Klan became the predictable antidote.

Bernhard Thuersam, www.Circa1865.com

War – Even if Slavery Were Removed as an Issue

“Conway’s disenchantment with the Northern cause began in 1862 when his deep-seated hatred of war came again to the fore, overcoming his bellicosity of the previous year. In April, he wrote to Charles Sumner on his recent lecture tour “a growing misgiving that a true peace cannot be won by the sword in an issue of this nature.” His second book, The Golden Hour, which was published that same year, displayed an increasing concern with the evils of war.

“The moralization of the soldier,” Conway now wrote, “is the demoralization of the man. War is the apotheosis of brutality . . . Should we continue this war long enough, we shall become the Vandals and Hessians the South says we are.”

Complaints about the low morale of the troops meant to him simply that the Northern soldier was still civilized and under the influence of Christian morality. The inescapable conclusion was that the longer the war continued, the more savage and brutalized the North would become. Here he generalized the insight at the end of The Rejected Stone that if emancipation did not come before it became a “fierce” necessity, it would reflect war passions rather than benevolence.

After the President did take up his pen and sign the [proclamation], Conway felt that it was too little and too late. In part this may have reflected his disappointment that the war continued as fiercely as ever; for he had refused as an optimistic humanitarian to believe that the eradication of one evil might require acceptance of another. A case can be made for the theory that Lincoln framed and enforced his edict in such a way that the fewest possible slaves would be freed – while at the same time taking the bite out of antislavery criticism of the administration.

By April 1863, when he sailed for England as an unofficial envoy of the American abolitionists, Conway was completely fed up with the bloody conflict which e saw as inflicting terrible damage on the South without adequate justification . . . and in any case, war was a worse evil than slavery.

Soon after arriving in England, Conway stirred up a hornet’s nest by making a peace offer to James M. Mason, the Confederate envoy, which he innocently misrepresented as coming from the American abolitionists. Conway proposed to Mason that if the South would abolish slavery on its own, the antislavery men of the North would “immediately oppose the further prosecution of the war . . . ”

The storm that broke over the head of poor Conway was something from which he never fully recovered. Almost to a man the abolitionists condemned and repudiated his offer. Conway now understood, apparently for the first time, that many of the abolitionists were devoted to a war which would crush the South even if slavery were removed as an issue.”

(The Inner Civil War, Northern Intellectuals and the Crisis of the Union, George M. Frederickson, Harper & Row, 1965, pp. 123-125)

Following the War Between the States, the freedmen were exploited by the infamous Union League to help ensure the election of Northern radical Republicans who exploited and bankrupted the exhausted South.  The emergence of the Ku Klan Klan was a predictable result.

Bernhard Thuersam, www.Circa1865.com

War of Conquest, Not Emancipation  

“Reconstruction” is a curious name to apply to the period following the war. Indeed, the war had left widespread destruction, but the government in Washington had no policy of reconstruction.  The South was left to its own economic devices, which largely amounted to being exploited by Northern interests who took advantage of cheap land, cheap labor, and readily available natural resources. This exploitation and neglect created an economic morass, the results of which endure into the twenty-first century.

Not surprisingly, governments based on the leadership of carpetbaggers, scalawags, and freedmen, groups that represented a minority of the population, met widespread and violent opposition. This attempt to create a government based on racial equality was made even more ludicrous when many of [the] Northern States rejected the Fourteenth and Fifteenth amendments to the U.S. Constitution, creating a situation where the States that said they had worked to free the slaves failed to grant equality to people of color.

(Nathan Bedford Forrest’s Escort and Staff, Michael R. Bradley, Pelican Publishing Company,

“Roosevelt the First,” as Mencken referred to Theodore, seemed unaware that his own party was responsible for the national malady he spoke against – it was the Republican Party’s marriage of government and business in the 1860s that unleashed the Gilded Age as the conservative South was no longer there to resist the government corruption and scandal. As he asserted new powers for the president, Roosevelt was creating new authority beyond what the United States Constitution confers upon the executive branch, his New Nationalism was indeed a refuge for “presidential lawbreakers.”

Bernhard Thuersam, www.Circa1865.com

Roosevelt’s “New Nationalism”

“[Former President Roosevelt] arrived in New York on June 18 [1910], after visiting courts and other interesting scenes in Europe. In all these places he received great honor, and his landing in New York called forth a demonstration worthy a world hero.

The public was curious to see whether Roosevelt would side with his old friend [William H. Taft], now the President . . . Shortly after landing he visited Taft and outwardly all seemed harmonious. In all he said openly he did not criticize Taft, but he did not abate his opposition to big business in politics.

Then suddenly he hurled a thunderbolt. Speaking on August 31 at Osawatomie, Kansas, he announced a political program, which he called “New Nationalism.” Government by the people, he said, was threatened by wealth in national politics, and the power of the nation should be so extended over it that it could not do what it is doing.

To reach this end he would give the federal government all needed power. If the Constitution was not strong enough he would amend it. He denounced what he called the “twilight zone” between federal and State authority, “a refuge for lawbreakers, and especially for lawbreakers of great wealth, who can hire the vulpine legal cunning which will teach the way to avoid both jurisdictions.”

“New Nationalism,” he added, regards the executive power as the steward of the public welfare. It demands of the judiciary that it shall be interested primarily in human welfare, rather than in property, just as it demands that the representative body shall represent all the people rather than one class or section of the people.” From the individualism of [Grover] Cleveland to the “New Nationalism” of Roosevelt was a long step.”

(Expansion and Reform, 1889-1926, John Spencer Bassett, Kennikat Press, 1971 (original 1926), pp. 175-176)