Circa1865

The war waged against the American South was more about destroying it’s political and economic power in the Union, so that Northern political and economic interests could prevail nationally. The resulting carnival of political vice and scandal is best summarized with: “The festering corruptions of the post-war period sprang up in every part of America and in almost every department of national life. Other loose and scandalous times . . . had been repellent enough; but the Grant era stands unique in the comprehensiveness of its rascality.”

Bernhard Thuersam, www.Circa1865.org

Postwar Corruption and Thievery in Washington

“The Civil War had severed the Southern checks on the exploitation of natural resources, had supplanted an old, experienced ruling class for a new, inexperienced one, had released the dynamic energies of the nation, and had ushered in the Era of Manipulation.

Under President Grant, pliant and politically naïve, the government had fallen into the hands of dishonest and incapable men . . . politics under the cloak of Radicalism more and more had become identified with manipulation for economic favor. Hordes of lobbyists had swarmed over the land, seeking railroad subsidies, mining concessions, and thousands of other government handouts.

The West was being plundered by railroad and mining corporations, the South by Carpetbaggers and Scalawags. The cities and the State legislatures, in North and South alike, were infested with rings, lobbyists, bribe-givers, and bribe-takers. Even the national Congress had become a tool of predatory business interests. Machine politics, firmly founded on patronage, economic privilege, the bloody shirt, and the soldier vote, prevailed everywhere.

The new ruling classes, flushed with prosperity, had lost their sense of responsibility, and corruption had kept pace with the upward swing of the business cycle. Political morality had sunk to its lowest level in American history.

In the closing days of the last Congress, [Grant’s self-styled House floor leader] Ben Butler and a few others had slipped through a measure increasing the salaries of the President, members of Congress, and other high officials. Tacked onto the unpopular measure was a retroactive feature which in effect gave each member a $500 bonus for his service the last two years.”

(John A. Kasson, Politics and Diplomacy from Lincoln to McKinley; Edward Younger, State Historical Society of Iowa, 1855, excerpts pp. 250-252)

The land seized, sold and leased in occupied South Carolina by the North’s Direct Tax Commission was dominated by Northern philanthropists and others who had acquired their wealth by exploiting free labor. They developed Northern support for the “Port Royal Experiment” by convincing manufacturers that successful black farmers would become ravenous purchasers of Yankee goods. In a June 15, 1864 letter to the Edward S. Philbrick mentioned below, Northern General Rufus Saxon wrote: “What chance has [the Negro] to get land out of the clutches of the human vulture, who care for him only as they can gorge themselves upon his flesh? If you had seen the hungry swarms gathered here at the land sales in February . . .”

Bernhard Thuersam, www.Circa1865.org

A Superior Race of Yankee Employers

“[In the occupied South Carolina’s Sea Islands], the first purchasers were principally the New England wing of the planter-missionaries [who] welcomed more favorable circumstances in which to prove their theory that free labor could grow more cotton, more cheaply, than slave labor. The largest buyer [of land] was Edward S. Philbrick, backed by wealthy Northern philanthropists . . .

Federal authorities were reluctant to lease or sell subdivided plantation tracts to the freedmen [though some] managed to purchase several thousand acres . . . but the acreage they acquired was always well below that purchased by Northern immigrants, and this result was intended by a majority of the tax commissioners.

The truth is, not many of the liberators had boundless faith in the freedmen’s capacity for “self-directed” labor so soon after their emancipation. When in January 1865 General William T. Sherman set aside a strip of land along the southeastern seaboard for the exclusive occupancy of the thousands of slaves who followed his army to the sea, the news was generally greeted in the North with lamentation and deep foreboding.

It was a great mistake in statesmanship, the New York Times said, for what the ex-slaves needed was not isolation and complete independence, but “all the advantages which the neighborhood of a superior race . . . would bring to them. And what they needed even more was the good example and friendly guidance such as Yankee employers could largely provide. Few doubted, after emancipation, that the freedmen had some promise, provided that Yankee paternalism was allowed full scope.

When the old masters talked of free labor, they really meant slave labor, “only hired, not bought.” And how could men whose habits and customs were shaped by the old order readily grasp the requirements of the new order? The case seemed plain to all who had eyes to see. If the freedmen were ever to be transformed into productive free laborers within the South, the New York Times argued with unintended irony, “it must be done by giving them new masters.”

(New Masters: Northern Planters During the Civil War and Reconstruction, Lawrence N. Powell, Yale University Press, 1980, excerpts, pp. 4-5)

In September 1864, the New York World editorialized “for the simple reason that, after [peace candidate George B. McClellan’s] inauguration, the character of the war will have so changed that the Southern people will no longer have a sufficient motive to stand out.” Despite a critical New York press, Lincoln barely won the State’s 212 electoral votes in November 1864 against McClellan, the manipulated soldier vote assisting greatly in the .92% margin of victory. After Lincoln’s assassination in mid-April 1865, the Yonkers Herald-Gazette condemned it as “the darkest crime” but added that “it might have been a wise move at the beginning of the war during the darker days of the struggle.”

Bernhard Thuersam, www.Circa1865.org

The Second War on the Liberties of American Citizens

“For the Democrats of Westchester County [New York], the presidential contest of 1864 appears as the last opportunity for opposition to Lincoln, his policies, and the future course of the war. This time, they could rally around a single candidate, George B. McClellan.

For Mary Lydig Daly, having Lincoln as president once again was a repulsive thought. [She] wrote in her diary . . . “We are at present ruled by New England, which was never a gentle or tolerant mistress, and my Dutch and German obstinate blood begins to feel heated to see how arrogantly she dictates and would force her ideas down our throats, even with the bayonet.”

In 1864, McClellan made it clear he would continue the war to its successful conclusion, that is, the restoration of the Union as it was. He did not advocate “peace at any price,” in spite of the sentiments of some members of his party.

Should he have won the presidency in 1864, he would have dismantled the repressive aspects of Lincoln’s policies against civil liberties and civilians. He would have undone the Republican experiments in social engineering, especially emancipation.

When his Northern solders commented on the evils of slavery (many of them having seen the institution for the first time), what they were really seeing were the consequences and disorder of emancipation. The Reconstruction Era presented a clear picture of what that was like, resulting in “nothing but freedom” for the ex-slaves.

When Lincoln was nominated that June [1864], the Yonkers Herald-Gazette . . . commented “Another four years of “Honest old Abe” would leave nothing but the shadow of a Republic on the American continent. The Republican papers in the county, such as the rival Yonkers Statesman, trotted out their familiar epithet of “disloyalty” against this paper and other Democratic sheets . . .

The Yonkers Herald-Gazette retorted: “We confess to the smallest possible amount of respect for the Republican professions of “loyalty,” or Republican charges of “disloyalty.” The word is not American, nor Republican even – here it originally expressed the treasonable attachment of the loyal Tories to George the Third, in his wanton war against American liberty; and as now used, it general means partisan devotion to Abraham Lincoln, not in resistance to a Southern Rebellion, but in a would-be second war on the liberties of American citizens.”

(The Last Ditch of Opposition: The Election of 1864 and Beyond; Yankees & Yorkers: Opposition to Lincoln’s Policies in Westchester County, New York, and the Greater Hudson Valley, Richard T. Valentine; Northern Opposition to Mr. Lincoln’s War, D. Jonathan White, editor, Abbeville Institute Press, 2014, excerpts pp. 204-206)

The party of Seward and Lincoln fielded its first presidential candidate in 1854; in the space of another seven years this party succeeded in alienating nearly half the country, waged bloody war in Kansas, forced a State to peacefully withdraw from the Union, and plunged the country into a bloody and destructive war that led to the deaths of a million people.

Bernhard Thuersam, www.Circa1865.org

Un-American Union of Force

“Finally, a new party was formed, with its primary object, as professed, the exclusion of the South from the common territories that had been acquired by the common blood and the common treasure of the South and the North.

And, significantly, early in its history, or as soon (1860) as it had acquired material growth and substantial prestige, this new political party, already thus avowedly sectional in its principles, made a sectional “protective” tariff one of its demands.

And when it had elected a president (by a sectional and a minority popular vote, be it remembered), and so caused a disruption of the union of States, “protection” was a primary means employed to support the war that followed – a war of aggression and conquest waged by this party to secure both its own continued supremacy and the new consolidated and un-American union of force in place of the pristine confederated union of choice which itself had had done so much to destroy; a war in which Negro emancipation “in parts of the Southern States” was incidentally proclaimed as a “military measure,” the thirteenth amendment coming later to extend and validate this unconstitutional proceeding.

“Un-American union of force,” I said; we must remember that widespread opposition to the war of conquest against the South manifested itself in the North, and that the myriads of immigrants from centralist, “blood and iron” Germany had much to do with turning the scale in the North in support of Lincoln’s and Seward’s war.

In these aliens there had arisen “a new king which knew not Joseph,” who had no inconvenient recollections of ’76 to hold him in check.”

(Living Confederate Principles, Lloyd T. Everett, Southern Historical Society Papers, No. II, Volume XL, September 1915; Broadfoot Publishing Co., 1991, excerpts pp. 22-23)

Voter turnout in 1860 presidential election was 81.2%, the largest to that date. Lincoln won the Electoral College with only 39% of the popular vote – all in Northern States and the emerging West. Due somewhat to the split in the Democratic Party, his victory, refusal to compromise and constitutional usurpations led to a devastating war and political upheaval from which the country has yet to recover.

Bernhard Thuersam, www.Circa1865.org

Lincoln’s Minority Government

“In view of the fact that three-fifths of the American people voted against Lincoln, and that probably more than four-fifths of the American people preferred compromise to civil war or to a dissolution of the Union, it is important to note that Lincoln based his attack upon secession and refusal to acknowledge it as one of the rights of a State upon the fact that secessionists were not a majority, but a minority of the American people.

“If the minority,” he said, “will not acquiesce, the majority must, or the government must cease. There is no other alternative; for continuing the government is acquiescence on one side or the other. If a minority in such case secede rather than acquiesce they make a precedent which in turn will divide and ruin them: for a minority of their own will secede from them whenever a majority refuses to be controlled by such a minority.”

This is a very true statement.

A majority had voted against Lincoln and a majority had wanted compromise, while Lincoln, representing a minority, refused to accede to the wishes of the majority. It was perfectly true that the majority of the nation were opposed to secession or the breaking up of the nation, but they were in favor of preserving the national unity, not by war, but by the time-honored method of conciliation.

It is highly probable that a majority of Americans believed that Lincoln’s above statement applied to the secessionist per se minority – because a majority of American voters did not know then, and do not know now, that a man can be legally elected President when a vast majority have voted against him.”

(The Peaceable Americans of 1860-1861: A Study in Public Opinion, Mary Scrugham, Columbia University Press, 1921, excerpts pp. 85-86)

New Hampshire native President Franklin Pierce was well-aware of the increasing sectionalism pushing the South toward secession, and Northern States erecting laws in conflict with federal law. He would not countenance State obstruction of constitutional obligations while they remained within the Union. He also understood, as Lincoln seemed not to, that the comity of the States was the glue binding the Union together. Without this, the Union was at an end and brute force could not save it.

Bernhard Thuersam, www.Circa1865.org

A “Forbidden Journey”

“President Pierce’s affinity for the rule OF law in contrast to the rule BY law explains why such scorn has been heaped upon his presidency.

President Lincoln, had he complied with the rule of law and deferred to the U.S. Constitution on the issues of secession, the writ of habeas corpus, the blockade of Southern ports, etc., may have presided over the realignment of the Union, but he also would have placed the rule of law on a constitutional pedestal that would have constrained subsequent presidents from disregarding constitutional constraints in the quest for power.

But Lincoln’s claim to fame is not that he adhered to the rule of law, but that he had the audacity to disregard it.

Lincoln’s unfortunate legacy is that he destroyed American federalism by creating a coercive indissoluble Union. Consequently, the policy prerogatives of imposition, nullification, and secession are now placed beyond the grasp of the States. Nevertheless, the ever-expanding national government’s powers continued to occupy the efforts of the courts in post-bellum America.

A case in point is Justice [George A.] Sutherland’s opinion in Carter v. Carter Coal Company (1936) a case which stemmed from FDR’s expansion of national powers vis-à-vis the States Tenth Amendment police powers. Justice Sutherland articulates the anti-Lincoln premise that “The States were before the Constitution; and consequently, their legislative powers antedated the Constitution.”

To concede otherwise is to begin a “forbidden journey” through which the national government takes over the “powers of the States” and the States “are so despoiled of their powers” that they are reduced to “little more than geographical subdivisions of the national domain. It is safe to say that when the Constitution was under consideration, it had been thought that any such danger lurked behind its plain words, it never would have been ratified.”

Justice Sutherland’s logic is just as applicable today, with the qualification that the “forbidden journey” has progressed to where the national government may be so “despoiled of its powers” that it will be reduced to “little more than geographical subdivisions” of the international domain.

In conclusion, America is in trouble. With unmanageable public debt . . . and fiscal obligations in excess of one hundred trillion dollars, not to mention the cultural and political state of the Union, Americans continue to pay homage to the villains that laid the tracks to our present sorry state of affairs.”

(President Franklin Pierce and the War for Southern Independence, Marshall DeRosa; Northern Opposition to Mr. Lincoln’s War, D. Jonathan White, editor, Abbeville Institute Press, 2014, excerpts pp. 38-40)

History as a Tool for Manipulating the Masses

“[Mitch] Landrieu’s speech praising his own actions in the advancement of the Eternal Reconstruction of his beloved “bubbling cauldron of many cultures” was hailed far and wide, and the local leftist paper, the Times-Picayune, proclaimed him the inevitable frontrunner for the Democratic nomination in the 2020 election.

[That] oration at Gallier Hall was scheduled to coincide with the conclusion of the removal of the 16’-6” Robert E. Lee statue, which had, since 1884, presided over Lee Circle atop a column some 70 feet tall.

In its obituary [of Lee’s passing in 1870], the New York Times praised Lee’s character and singular talents, though it decried his participation in the “rebellion” and referred to his perceived duty not to “raise his hand against his relatives, his children, and his home” as an “error of judgment,” a participation in a “wicked plot.”

Two days later, the Times declared that “The English journals are teeming with eulogistic obituary notices of Gen. Lee.” One week later, it reported glowingly on a gathering at none other than Cooper Union, “in a tribute to Robert E. Lee.”

It is noteworthy that none of these papers, Northern, Southern, or European, mentioned a war prosecuted either to extinguish or to defend Southern slavery, let alone a conflict to settle the future of “white supremacy.” For the South, it was a defensive war against an overweening, nationalist invader. For the North, it was a war to quell a “rebellion” against a Union that was somehow sacred and indissoluble.

Abraham Lincoln, remembering his revenues, had not threatened slavery where it already existed, had promoted an amendment to the Constitution guaranteeing that the peculiar institution would live in the South in perpetuity (the “Corwin Amendment”), and in his 1862 Emancipation Proclamation held out the promise that any State in “rebellion” which would rejoin the Union could keep its slaves.

White supremacy was quite simply the status quo in every State, North and South, whether blacks were enslaved or free, before and after the war.

[So long] as race-baiting politicians can incite resentment to garner votes from a near-permanent black underclass and (now) a generation of white adults taught to hate their ancestors and view all history through the lens of Critical Race Theory. It is a clever means of changing the subject while the percentage of blacks in New Orleans living in poverty (and subject to violent crime) soars above that of the rest of America, a reality attested to by Ben C. Toledano in “New Orleans: An Autopsy” ten years ago.

The rule of Leftist Supremacists, from Moon Landrieu in the 70’s through six black Democratic mayors and up to Moon’s son Mitch, hasn’t altered these deplorable conditions, nor has the removal of Confederate monuments which, Landrieu admits, he never paid any mind to when growing up in New Orleans. The past is only a tool for manipulating the masses in the name of Progress, which translates into power for men like Landrieu.”

(The Discarded Image, Aaron D. Wolf, Chronicles, July 2017, excerpts pp. 36-37, www.chroniclesmagazine.org)

During the 1876 gubernatorial campaign to rescue his State from the Radical rule of the corrupt Massachusetts-born governor, Daniel Chamberlain, Democratic candidate Wade Hampton challenged the many blacks in his audiences to advance to a new level of freedom. “You have, ever since emancipation been slaves to your political masters [of the Republican Party]. As members of the Loyal [Union] League you have been fettered slaves to a party.” Since the war’s end, Radical Republicans used the Union League to elect its candidates, suppress political opposition, and terrorize black men who sided with Democrats.

Bernhard Thuersam, www.Circa1865.org

Black Democrats Jeered and Hissed in 1876

“City of Dreadful Night.” Always the words recall two nights in Charleston almost exactly ten years apart – September 1, 1886, the night after the earthquake, September 6, 1876, [the] night of the King Street riot. The riot was the worse, by far, to live through.

The riot night there was tumult and confusion of hate and fear and pistol shots, howls of wild rage, savage threats and curses, appeals of pursued and bloody men for rescue, mercy and life. The riot could have been prevented. All know that now.

It was one of the tragic incidents of the 1876 campaign and . . . it gave Charleston perhaps the most fearful night of her eventful history. The white people were overconfident. They knew unrest and anger were seething and increasing among the Negroes and were prepared to resist and suppress an outbreak; but the outbreak came before it was expected . . .

Looking back it is easy to see that the storm signals were plain. The Radical Republican leaders had noted with growing dismay and fury the slow but steady additions to the number of Negroes enrolling in Democratic [party] clubs, for one reason or another. A riotous attack had been made on the Negro club in Mount Pleasant.

The meeting of the Democratic club of Ward 8, August 31, in the old carriage factory, Spring Street near Rutledge Avenue, was invaded by a number of boisterous [Republican] Negroes who interrupted . . . [as they sought an] opportunity to injure Isaac Rivers, a huge black man and an effective speaker, working for the Democrats, and J.W. Sawyer, another colored speaker. Rivers and Sawyer were hustled, threatened and cursed, but escaped uninjured.

On the night of September 5 . . . On motion of Colonel J.D. Aiken a committee of seven was appointed charged especially with protection of colored Democrats.

[A] mob of Negroes packed the street around the entrance to the meeting place of Ward 5. The white men formed a square, with Rivers and other Negro Democrats in the middle, and marched into King Street through a roar of jeers and hisses. They were aided by police and the disturbance ended.

A meeting of the colored Democratic club of Ward 4 was held the night of the sixth at Archer’s Hall, King Street, J.B. Jenkins, vice-president, presiding. The Hunkidories and Live Oaks, Negro Radical Republican secret organizations had gathered their forces and were massed, waiting, in King Street, armed with pistols, clubs and sling shots, the last made with a pound of lead attached to a twelve-inch leather strap and providing a deadly weapon at close range.

Mr. Barnwell led the white men gallantly. They checked to mob by firing pistols just over the heads of those in the front rank . . . the police arrived at the nick of time, charged, used their clubs and were resisted fiercely. At Citadel Green the fighting became desperate . . . and several police were insensible or disabled.

A new mob of Negroes poured out of John Street, shrieking “Blood!” A black policeman named Green and J.M. Buckner, white, were shot, fell, and were drawn out of the fighting crowd with difficulty. The fifteen white men who remained on their feet struggled into the Citadel grounds and delivered the Negro Democrats, none of whom was injured.

Then the whites fled as they could and the Negro mob took the street [and] divided into gangs of fifty to one-hundred and paraded, firing pistols, defying the police, chasing and mercilessly beating every white man they could see and catch, smashing store windows, shouting threats to exterminate the white population.

The main guard house was filled with wounded white men, some of them picked up insensible and probably left for dead. Mr. Buckner was seen to be dying. Several policemen were fearfully wounded. Two reporters for the News and Courier sent to the scene of the riot were beaten, struck with stones and rescued by police only with much effort.

Panic spread fast and everywhere as people understood that war had begun on race lines and that Negroes appeared to have possession of the city. White men were compelled to stay in their homes with shivering and terror-stricken families because any white man venturing on the street alone invited death uselessly.”

(Hampton and His Red Shirts: South Carolina’s Deliverance in 1876, Alfred B. Williams, Crown Rights Books, 2001 (original 1935), excerpts pp. 119-121)

After the armed resistance by Marylanders against Northern troops passing through their State in April 1861, the “Northern press howled for revenge on Baltimore and for the subjugation of Maryland.” Business in that city was at a standstill and the Potomac was patrolled by an armed flotilla aimed at cutting off Maryland from Virginia and the Southern Confederacy. On May 2, the New York Times suggested employing the same “experiment so successfully tried in Maryland” on Virginia. Secession, wrote the newspaper, was simply the result of a mob, and the “army . . . should immediately advance South to act as a local police. The mob at Richmond would prove to be as cowardly and contemptible as at Baltimore.”

Bernhard Thuersam, www.Circa1865.org

Neutralizing Maryland

“While other States of the South seceded peacefully and of their own free will, Maryland could not. In the final analysis, Maryland was forced to stay in the Union.

The end of the secession movement in Maryland, at least the de jure end, came on November 6, 1861, with the Union Party’s overwhelming victory in the State legislative contests and the election of their candidate, Augustus W. Bradford, as governor.

The election destroyed secessionist hopes of taking Maryland into the Confederacy, and many Marylanders who sympathized with the South fled across the Potomac to join fellow citizens who had already been recruited to Confederate arms by a station set up in Baltimore.

Following the election, federal authorities with State cooperation “promptly suppressed all signs of secession sympathy of an active nature . . . Maryland became in fact as well as in name a loyal State.”

Bradford, until 1861 a relatively little known politician, was an unconditional Unionist and therefore received the support of the Lincoln administration, as did his Union Party. Indeed, he scored an impressive victory – the margins of which were so skewed that many question their authenticity. Bradford won with 57,000 votes to his opponent’s 26,000, and his party won sixty-eight seats in the House of Delegates to only six for the opposition. Secessionists and others opposed to Lincoln naturally cried foul.

The Baltimore South gave its “Union friends . . . great credit for the moderation exercised as there was no earthly reason, beyond the expense of ticket printing, why the majority (in Baltimore) should have been 40,000 instead of 14,000.” The journal had been “reliably informed that the Federal troops from every section of the country kindly aided their Union friends here, and deposited their ballots in as many wards and precincts as suited their convenience.”

This wry report from a secessionist newspaper should be read for what it is, but [one writer] makes the compelling point that, “The size of the majority made no difference for the Lincoln administration could have made it what it chose by applying the test oath more strictly, and by arresting the State Rights men.”

Bradford did appear to be elected by fraudulent means, and some question, given the results, why an election was held at all. It was held, of course, because the Lincoln administration badly wanted the country, and the European governments closely watching developments across the Atlantic, to believe that, constitutionally speaking, things were still working normally and that most Americans supported the Administration.

Once Lincoln and the War Department determined that Maryland had to be neutralized, they were forced to implement drastic policies.”

(A Southern Star for Maryland, Maryland and the Secession Crisis, 1860-1861, Lawrence M. Denton, Publishing Concepts, excerpts pp. 116-119)

Lincoln’s war administration and deficit financing ushered in the modern American state which remains in existence today. The various Bureaus, Departments and revolutionary measures created for the purpose of increasing federal power were all linked to his total war-effort, including the restructuring of currency and banking. Author Bruce D. Porter (War and the Rise of the State, Free Press, 2002) wrote that “Appomattox thus represented not just the defeat of the South, but the defeat of the whole Southern economic and political system, and the triumph of a state-fostered industrial and financial complex in the North.”

Bernhard Thuersam, www.Circa1865.org

The True Result of Appomattox

“[in Herman Melville’s postwar] poems he recognized the tremendous costs, especially through the loss of freedom and the end of the founders’ dream for America as a result of the North’s victory. He viewed the construction of the new iron dome on the Capitol in Washington, DC, which replaced the wooden one, as a symbol of America’s future.

Bruce Porter’s well-documented study [of the war] relates some of the economic costs of the Civil War:

In connection with the war the Lincoln administration attempted to intervene in areas of the national life that the federal government had never touched before . . . Prior to 1861, the national government had been a minor purchaser in the American economy. During the war, it became the largest single purchaser in the country, a catalyst of rapid growth in key industries such as iron, textiles, shoe manufacturing, and meat packing . . .

The Civil War spawned a revolution in taxation that permanently altered the structure of American federalism and the relationship of the central government to the national economy. Prior to the war, over 80 percent of federal revenue had come from customs duties, but despite several upward revisions of the tariffs during the war, those could provide only a fraction of what was needed to sustain the union armies.

On August 5, 1861, the first income tax in US history came into effect, followed by the Internal Revenue Act of 1862, which levied a whole series of new taxes: stamp taxes, excise taxes, luxury taxes, gross receipt taxes, and inheritance tax, and value-added taxes on manufactured goods. The latter Act created the Bureau of Internal Revenue, perhaps the single most effective vehicle of federal power ever created . . .

Neither taxes nor paper dollars, however, came close to covering the enormous costs of the war. Dire fiscal straits forced the federal government to borrow over 80 percent of its cost, or more than $2.6 billion. [The] Lincoln administration created a captive source of credit by granting a monopoly on issuance of the new national currency to banks that agreed to purchase large quantities of federal bonds . . . [and] agree to accept federal regulation and federal charters. Thus, almost overnight, a national banking system came into being.

[Author] Eric Foner writes that the fiscal measures represented in their “unprecedented expansion of federal power . . . what might be called the birth of the modern American state . . .”

(The Costs of War, America’s Pyrrhic Victories, John V. Denson, Transaction Publishers, 1999, excerpts pp. 28-29)