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Postwar South Ruled by Genial, Patronizing Viceroys

Lincoln’s war not only destroyed the Southern economy and impoverished the region, but also became a vehicle for New England’s commercial colonization of the South. This status persisted through FDR’s first term as he recognized the South as America’s number one economic problem and used Democrat Party patronage and power to keep the region in bondage. The North continued tales of “Southern outrages” from Reconstruction days, and Presidential candidate George Wallace noted in 1968 that Northern editors would always refer to racial incidents in the South as “race riots,” while the same in the North were labeled “civil disturbances.”

Bernhard Thuersam, www.Circa1865.com

 

Postwar South Ruled by Genial, Patronizing Viceroys

“The manufacturers and distributors of the North and various adjunct agencies are bleeding the South white. The same may be said of a very large part of Southern industries, owned, as has been observed, in the North and operated by local overseers.

To a great extent the region is controlled by the absentee owners through their overseers and retainer agents. These agents are the symbols of success in the South and the paragons of social life. Their mansions stand on a thousand hills. It is good to wine and dine with these genial, if patronizing, viceroys. The absentee overlords retain the best legal talent to help them with their battles in the courts and the legislatures. Other types of influential persons, good public relations men and lobbyists, are also retained. Some of their retainers are always member of the legislatures. By selling some stock locally they raise up other friends and defenders.

Small wonder, then, that the corporations have exercised a large influence over law-making in the Southern States. Too often they have been able to defeat measures objectionable to them especially tax measures – and to promote those favorable to them. Too often they have not been willing to pay their fair part of the cost of public services or a fair wage to their employees.

Such industries are of questionable value to a community. The South has advertised its cheap labor, and industrialists from the North have tried to keep it so. There are other differentials against the South, already noted, that have also been a factor in the lower wage scales of Southern industry.

The absentee masters of Southern industry and the chain store magnates are interested in profits and not in the welfare of the South. This is natural, but it illustrates a fundamental weakness in an industrial system based on outside capital. It would seem that those who gather their wealth from the South might reasonably be expected to give some of their educational benefactions to higher education in the South.

But their gifts have generally gone to northern institutions that are already rich compared with those in the South. Their contributions to cultural development, whether in the form of gifts or taxes, go largely to the North.

The North has not only held the South in colonial bondage, but it has been very critical of the South, even for conditions that inhere in such an economic status. It is doubtful if the British ever had a more superior and intolerant attitude toward the American colonists.

The “Southern outrages” complex, fomented by Radical politicians in the old Reconstruction days, has persisted. Incidents that have escaped editorial eyes if they happened in the North have been denounced as outrages if they occurred in the South. A public lynching in a well-known western State a few years ago did not evoke nearly as much condemnation as does the lynching of a Negro by a clandestine mob in the South.

The people of the North are not denounced as being crude and barbarous because of the persistent activities of murderous bands of racketeers in large northern cities.”

(One Hundred Years of Reconstruction, Albert B. Moore, 1943, Southern Historical Society Addresses; Journal of Southern History, 9, 1943, excerpts, pp. 159-164)

No Submission to Northern Manufacturers

It is said that the tariff was the most contentious issue in the United States between 1808 and 1832, and this exploded with South Carolina threatening tariff nullification in that latter year. This was settled with Congress steadily lowering tariffs. Economist Frank Taussig wrote in 1931 that by 1857 the maximum duty on imports had been reduced to twenty-four percent and a relative free trade ideal was reached, due to Southern pressure. He also noted that the new Republican-controlled Congress increased duties in December 1861 and that by 1862 the average tariff rates had crept up to 47.06%.

Bernhard Thuersam, www.Circa1865.com

 

No Submission to Northern Manufacturers

“South Carolina had opposed the tariff from the earliest days of the republic. The very first Congress, in 1789, had included a group of Carolina representatives known as “anti-tariff men.” When the Washington administration sponsored a mild import measure, Senator Pierce Butler of the Palmetto State brought the charge that Congress was oppressing South Carolina and threatened a “dissolution of the Union, with regard to that State, as sure as God was in his firmament.”

The tariff of 1816, passed in a wave of American national feeling after the War of 1812, found six out of ten Carolina members voting against the bill. John C. Calhoun and the other three members who supported the measure were severely censured at home.

Almost the entire South opposed the tariff of 1824. The spreading domain of King Cotton now had a well-defined grievance: the Northeast and the Northwest were uniting to levy taxes on goods exchanged for exported cotton; their protective tariff policy, and concomitant program for internal improvements, was benefiting their entire section at the expense of the South.

The policy protected New England [cotton] mills and furnished funds for linking the seaboard States of the North with the new Northwest by means of canals and turnpikes. The Southern planters paid the bills: they were forced to buy their manufactured supplies in a high market and their chief article of exchange, cotton, had fallen from thirty cents a pound in 1816 to fifteen cents in 1824. In addition, the internal improvements program offered them no compensation; the rivers took their cotton to the shipping points.

When the “Tariff of Abominations” passed in 1828, all the Southeastern and Southwestern members of the house opposed it, except for three Virginians. In the Senate, only two Southerners supported “the legislative monstrosity.”

The opposition to Northern tariff policy was most vociferous in the Palmetto State. [English-born South Carolinian Thomas Cooper presented] Lectures on the Elements of Political Economy (1826) and other writings of the period [which] receive credit for doing much toward shaping opinion on the tariff.

In 1827, he told Senator Martin Van Buren of New York that if [Henry Clay’s] American system were pushed too far, the Carolina legislature would probably recall the State’s representatives from Washington.

Seven years after [Cooper’s] arrival in the Palmetto State, he made the famous declaration that it was time for South Carolina “to calculate the value of the Union.” This historic utterance of July 2, 1827, gave rise to shocked expressions of horror, even among some Carolina hotheads, but it had been indelibly burned into the thinking of a generation. It had a habit of cropping out down through the years. Webster and Hayne both alluded to it during their famous debate.

An English traveler, stopping at Columbia . . . in 1835, had the opportunity to hear Cooper expressing his opinions and to observe the attitude of those who surrounded the strong-minded college president [of South Carolina College]. After this occasion, he noted in his diary:

“I could not help asking, in a good-natured way, if they called themselves Americans yet; the gentleman who had interrupted me before said, “If you ask me if I am an American, my answer is No, Sir, I am a South Carolinian.” [These men] are born to command, it will be intolerable to them to submit to be, in their estimation, the drudges of the Northern manufacturers, whom they despise as an inferior race of men. Even now there is nothing a Southern man resents so much as to be called a Yankee.”

(Romanticism and Nationalism in the Old South, Rollin G. Osterweis, LSU Press, 1949, excerpts, pp. 139-141)

Let the South Withdraw

New York Governor Horatio Seymour noted that “very few [Northern] merchants had been backward about importing [slaves] and selling them South” — and that “Slavery, in fact, was upheld by the great business firm of “Weaver, Wearer and Planter” — only one of the three partners of which resided in the South — but for the looms of New England and Old England [slavery] could not live a day.”  Seymour was also aware that passage of the Crittenden compromise would have forestalled the secession movement in the South, but the Republican party was determined to defeat it. Historian James Ford Rhodes later wrote that ‘it seems to me likewise clear that, of all the influences tending to this result [the compromise defeat], the influence of Lincoln was the most potent.”

Bernhard Thuersam, www.Circa1865.com

 

Let the South Withdraw

“It was [Seymour’s] belief, he declared, that if people asked themselves why the United States had split asunder in civil war, they had only to read Washington’s Farewell Address for their answer and find out how completely they had neglected the warning of their first President.

Men who were loyal to nothing less than the whole Union both North and South would have to fight the spirit of both North and South alike, for people who made their prejudices and passions “higher” laws than the laws of the land were by no means confined to the eleven States which had arrogated to themselves the dangerous right to secede.

A majority of the American people, he reminded his hearers, had not preferred Lincoln for President, and a large part of the voters had deplored his election as a calamity, but Lincoln had been chosen constitutionally and deserved a “just and generous support” – as long as he kept himself within the limits of that very Constitution by which he was entitled to his office.

What would it profit the North to conquer the South if it destroyed the compact of government in the process? Alexander Stephens, though he disapproved of secession, had followed his Georgia out of the Union; Seymour, though he disapproved of abolition and did not vote for Lincoln, stayed in the Union with New York.

Yet the war was a fact, and because the decision of it would depend on might, the men of the North would be most unwise to call the victory they fought for “right.” “We are to triumph,” Seymour warned his hearers, “only by virtue of superior numbers, of greater resources, and a juster cause.” The arrangement of his words is significant.

Slavery, he insisted, was not the cause of the Civil War, for slavery had always existed in the land; it was present when the Union was formed, and the people had prospered before it became a matter of dispute. Causes and subjects were frequently distinct: the main cause of the war was the agitation and arguments over slavery. [Seymour stated] “If it is true that slavery must be abolished to save this Union then the people of the South should be allowed to withdraw themselves from that government which cannot give them the protection guaranteed by its terms.” [It was Seymour’s belief that] To grant immediate freedom to four million uneducated Africans would disorganize, even if it did not destroy, the Southern States.”

(Horatio Seymour of New York, Stewart Mitchell, Harvard University Press, 1938, pp. 238-239)

Remember the Maine

President William McKinley had to be goaded into war against Spain by the yellow journalism and fake news of Hearst and Pulitzer, but his dispatch of the USS Maine to Cuba provided the incident, as Roosevelt’s dispatch of the US fleet to Pearl Harbor did 43 years later. Lincoln’s bludgeoning of Americans seeking independence in 1861-1865, cleverly disguised as a war to emancipate slaves, left future imperial-minded presidents with a reusable template for war.

Bernhard Thuersam, www.Circa1865.com

 

Remember the Maine

“Henry Luce coined the phrase “The American Century” as an expression of the militant economic globalism that has characterized American policy from the days of William McKinley. Luce, the publisher of Time and Fortune, was the child of missionaries in China – a product, in other words, of American religious and cultural globalism. It is no small irony that this preacher’s kid was the chief spokesman for a global movement which, in its mature phase, has emerged as the principal enemy of the Christian faith.

The approach to Christianity taken by the postmodern, post-civilized, and post-Christian American regime is a seamless garment: At home, the federal government bans prayer in school, enforces multiculturalism in the universities, and encourages the immigration of non-Christian religious minorities who begin agitating against Christian symbols the day they arrive; abroad, the regime refuses to defend Christians from the genocide inflicted by Muslims in the Sudan, while in the Balkans it has waged a ruthless and inhumane war against the Serbs of Croatia, Bosnia, Kosovo and Serbia.

The inhumanity of NATO’s air campaign against villages, heating plants and television stations reveals, even in the absence of other evidence, the anti-Christian hatred that animates the Washington regime.

Luce did not invent the American Empire, he only shilled for it. His American Century began in the Philippines 100 years ago, when the American regime refined the policies and techniques discovered in the Civil War.

The oldest and best form of American imperialism is the commercial expansion advocated by the Republicans – McKinley, Taft, Hoover and Eisenhower – who warned against the military-industrial complex. Although all of these free-traders were occasionally willing to back up the politics of self-interest with gunboats, they preferred to rely, whenever possible, on dollar diplomacy. McKinley had no hesitation about establishing American hegemony in Cuba and the Philippines, but he had to be dragged into war.

Free trade, these Babbits believed, could be the route to market penetration around the globe, and one of the early slogans of commercial imperialists was the “Open Door.” Sometimes, however, the door had to be kicked in by the Marines.

As one spokesman for American industry put it 100 years ago, “One way of opening up a market is to conquer it.” This is what Bill Clinton meant when he justified his attack on Yugoslavia on the grounds that we need a stable Europe as a market for American goods.

Even the most tough-minded Americans are suckers for a messianic appeal; it must have something to do with the Puritan legacy. Even bluff old Bill McKinley, in declaring war on the people of the Philippines, a war that would cost the lives of more than 200,000 civilians, proclaimed the aim of our military administration was “to win the confidence, respect and affection of the inhabitants . . . by assuring them . . . that full measure of individual rights and liberties which is the heritage of a free people, and by proving to them that the mission of the United States is one of benevolent assimilation.”

The new American globalism has a logic all its own, one based on universal free trade, which destroys local economies; open immigration for non-Europeans and non-Christians, who can be used to undermine a civilization that is both Christian and European; and universal human rights, which are the pretext for world government.”

(Remember the Maine, Thomas Fleming; Perspective, Chronicles, August 1999, excerpt, pp. 10-11)

 

Irretrievably Bad Schemes in South Carolina

In the 1876 gubernatorial election in South Carolina, incumbent carpetbag Governor Daniel H. Chamberlain “bombarded the North with lurid accounts of the [Hamburg, SC riot] based on the excited claims of Negro participants” and that this act of “atrocity and barbarism” was designed to prevent Negroes from voting, though, as a matter of fact, the riot occurred five months before the election.” A Massachusetts native and carpetbagger of dubious reputation, Chamberlain left much evidence of a willingness for making his office pay.

Bernhard Thuersam, www.Circa1865.com

 

Irretrievably Bad Schemes in South Carolina

“In an Atlantic Monthly article published twenty-five years later, ex-Governor Chamberlain stated that] “If the [election] of 1876 had resulted in the success of the Republican party, that party could not, for want of material, even when aided by the Democratic minority, have given pure or competent administration. The vast preponderance of ignorance and incapacity in that [Republican] party, aside from downright dishonesty, made it impossible . . . the flood gates of misrule would have been reopened . . . The real truth is, hard as it may be to accept it, that the elements put in combination by the reconstruction scheme of [Radical Republicans Thaddeus] Stevens and [Oliver] Morton were irretrievably bad, and could never have resulted . . . in government fit to be endured.”

While federal troops were still holding the State House in Columbia, The Nation informed its readers, “Evidently there is nothing to be done but to let the sham give way to reality . . . to see without regret . . . the blacks deprived of a supremacy as corrupting to themselves as it was dangerous to society at large.”

As Congressman S.S. Cox of New York and Ohio remarked:

“Since the world began, no parallel can be found to the unblushing knavery which a complete history of carpet-bag government in these [Southern] States would exhibit. If the entire body of penitentiary convicts could be invested with supreme power in a State, they could not present a more revolting mockery of all that is honorable and respectful in the conduct of human affairs. The knaves and their sympathizers, North and South, complain that the taxpayers, the men of character and intelligence in South Carolina and other States, finally overthrew, by unfair and violent means, the reign of scoundrelism, enthroned by ignorance. If ever revolutionary methods were justifiable for the overthrow of tyranny and robbery, assuredly the carpet-bag domination in South Carolina called for it. Only scoundrels and hypocrites will pretend to deplore the results.”

(Wade Hampton and the Negro: The Road Not Taken; Hampton M. Jarrell, USC Press, 1949, excerpt, pp. 54-55)

Jan 6, 2017 - America Transformed, Historical Accuracy, Myth of Saving the Union, Northern Culture Laid Bare, Republican Party, Withdrawing from the Union    Comments Off on Two Radical Republicans on Southern Independence

Two Radical Republicans on Southern Independence

Wartime Republican Lt. Gov. of Ohio, Benjamin Stanton, severely criticized Generals Grant, Prentiss and Sherman after the Battle of Shiloh, concluding that the first two should be court-martialed and shot. Massachusetts-born, Ohio Senator Benjamin Wade was a prewar Whig and one of the most radical of Republicans by 1861. However, they both were of the opinion in early 1861 that the American South’s independence should be recognized.

Bernhard Thuersam, www.Circa1865.com

 

“I am Disposed to Recognize That Independence”

“Mr. Speaker, when there were fifteen slaveholding States acknowledging allegiance to the Federal Government, and therefore, having in their hands the power to protect themselves against any invasion of their rights on the part of the Federal Government, it was a matter of very little consequence whether such an amendment as that was incorporated into the Constitution or not.

But the state of the country is now radically and essentially changed. Seven or eight States now deny their allegiance to this Government, have organized a separate Confederacy, and have declared their independence of this Government.

If they shall maintain their position, and sustain the authorities there for a year or two to come, so as to show that nothing but a war of subjugation and conquest can bring them back, I, for one, am disposed to recognize that independence.”

(Ohio Republican Lt. Governor Benjamin Stanton (Congressional Globe, February 23, 1861, page 1285)

“You Cannot Hold Men Forcibly in This Union”

“And Southern gentlemen stand here, and in almost all their speeches, speak of the dissolution of the Union as an element of every argument — If they do not feel interested in upholding this Union, if it really trenches on their rights, if it endangers their institutions to such an extent that they cannot feel secure under it, if their interests are violently assailed by means of this Union, I am not one of those who expect that they will long continue in such a Union.

It would be doing violence to the platform of the [Republican] party to which I belong.

We have adopted the old Declaration of Independence as the basis of our political movement, which declares that any people, when their government ceases to protect rights, when it is so subverted from the true purposes of government as to oppress them, have the right to recur to fundamental principles, and if need be, to destroy the government. I hold that they have this right.

I will not blame any people for exercising it, whenever they think the contingency has come. You cannot hold men forcibly in this Union, for the attempt to do so, it seems to me, would subvert the first principles of the Government under which we live.”

(Senator Benjamin Wade of Ohio, Congressional Globe, third session, 34th Congress, page 25)

Impaling the South’s Agricultural Economy

Longtime-Democrat and early critic of Lincoln, Edwin M. Stanton, was appointed attorney general during the cabinet crisis by President James Buchanan in December 1860, though at the same time hobnobbing with Charles Sumner and other influential radical Republicans. As noted below, Stanton saw Negro emancipation as a weapon of war rather than a humanitarian policy — in truth a copy of British Lord Dunmore’s emancipation proclamation of 1775, and British Vice Admiral Sir Alexander Cochrane’s similar edict in 1814. All were aimed at inciting race war, denying the South its agricultural workers, and attracting black soldiers to be military laborers or cannon fodder.

Bernhard Thuersam, www.Circa1865.com

 

Impaling the South’s Agricultural Economy

“Crusades, like politics, sometimes make strange bedfellows. Few antislavery Radicals in 1860 would have guessed that a member of Buchanan’s cabinet, an outspoken critic of Lincoln and the Republican Party, would become, by 1862, a valuable and enthusiastic ally. But then, few men ever were ingenious enough to predict the course Edwin M. Stanton might follow from one day to the next. Even today it is difficult to assess the degree of Stanton’s Radical Republicanism.

Although he had been a Democrat since his college days and had served in a Democratic cabinet . . . He was in complete sympathy the Radical’s demands for a vigorous prosecution of the war and for the emancipation and military employment of Negro slaves. Yet, he never committed himself clearly to the economic program of the Republican Party: the high tariff, the Homestead Act, national banking, and a sound currency.

Though he used the considerable power of the War Department to aid Republican candidates in wartime elections, he used it also to benefit War Democrats, many of whom could never quite believe that he had really deserted the old party.

Stanton, then, was a true Union man, a partisan of any politician who believed, as he did, that the Southern Confederacy was a conspiracy of traitors and that total war was necessary to destroy it. In his hands, emancipation and the military use of Negroes became weapons of war.

Seldom did he consider the long-term implications of the war; his concern centered on the immediate task of defeating the Confederacy with every means at hand. But he had the prescience enough to realize that emancipation, though it would eliminate the problem of slavery, would at the same time create the problem of the freed Negroes. Impetuous and forceful, Stanton could not sympathize with Lincoln’s cautious approach to the problem.

[Horace Greely prophetically predicted that under Stanton], “no General or other officer of the army will more than once return a fugitive slave.” [Stanton’s predecessor, Simon Cameron in his final report stated:] “Can we afford to send them forward to their masters to be by them armed against us, or used in producing supplies to sustain the rebellion?”

Stanton recognized in the Radicals the strongest single bloc in Congress, a group to be cultivated and respected [as they had] worked hard to put him in the War Department.

It was [then] easy for the Radicals to demand publicly a war policy which would include emancipation and the military use of freed Negroes. [General David Hunter was rebuked by Lincoln for arming Negroes and Stanton publicly denied any responsibility, but] General Hunter’s subordinates charged later that Stanton had expressly authorized the action and that he had furnished guns and uniforms for the troops.

In spite of the Hunter affair, and without the President’s consent, he had tolerated isolated instances of using Negroes as soldiers . . . and few obstacles impeded the secretary’s policy of enlisting and arming the fugitives. The entire structure of slavery, he believed, could be transformed from a bulwark of the South agricultural economy into a weapon on which to impale its defenders.

“The power of the rebels rests upon their peculiar system of labor,” he insisted, and it was the duty of the Union to strike down that system, to “turn against the rebels the productive power that upholds the insurrection.” Next to the armed might of the Union, he considered the Emancipation Proclamation, with its military implications, the strongest weapon in the Northern arsenal.”

(Blueprint for Radical Reconstruction, John G. Sproat, Journal of Southern History, Volume XXIII, Number 1, February 1957, excerpts, pp. 25-29, 31-33)

 

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)