Circa1865

Hamilton Fish, Secretary of State in US Grant’s second term, was said to be “the representative of a sterner, simpler American age,” and one who “took a just pride in his old-fashioned conceptions of integrity and morals.” He was certainly appalled by the corruption and endless scandals that dogged Grant’s presidency, and most certainly contemplated in quiet moments just what the true outcome of the South’s defeat portended for the United States. Grant’s impeached secretary of war, William Belknap, accompanied Sherman in 1864-65 on the Georgia-Carolinas looting expedition.

Bernhard Thuersam, www.Circa1865.org

The Grant Era’s Comprehensive Rascality

“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.

President Grant is chargeable with a heavy responsibility for some scandals of the day; just how heavy [Secretary of States Hamilton] Fish soon saw, and subsequent pages based upon his diary and letters will show.

Honest as to money himself, [Grant] was the source of more dishonesty than any other American president. His responsiveness to such great moneyed interests as Jay Cooke represented was a national calamity. But when we look at the scandals, his responsibility was for the most part general, not specific; indirect, not direct. At some points he cannot be defended.

The role he played in crippling the Whiskey Ring prosecutions and the impeachment of [Grant’s Secretary of War, William] Belknap offers the darkest single page in the history of the Presidency. For this and for his arbitrary acts in the South, he was far more worthy of impeachment than Andrew Johnson. But with most scandals of the time he obviously had nothing to do. The Credit Mobilier affair can as little be laid at his door as the [Boss] Tweed Ring thefts.

The American people always derives much of its tone from its President. It is strenuous under a Theodore Roosevelt, idealistic under a Wilson, slothful under a Coolidge. Lowell was correct in these years in writing, “a strong nation begets strong citizens, and a weak one weak.”

Plainly, Grant’s administration was one in which almost anything might happen. More and more, it carried about it an atmosphere of stratagems and spoils. Uneasiness, in fact, henceforth haunted [Fish]. What if [Grant’s] backdoor clique really took control of the government? But Fish was of a religious temperament; and he may have heard of Bismarck’s statement that a special Providence existed for fools, drunkards and the United States.”

(Hamilton Fish, the Inner History of the Grant Administration, Allan Nevins, Dodd, Mead & Company, 1937, excerpts pp. 641-642; 666)

Since the war, Americans have believed, or led to believe, that national unity is the ultimate goal of all Americans – the South has been portrayed as evil given its distinction of unsuccessfully withdrawing from the Union. Southern historian Francis Butler Simkins notes that even Southern-friendly historians seem to get “inspiration from William T. Sherman who felt justified in imposing a cruel punishment upon the South because it tried to destroy the national unity.” In reality, the South’s withdrawal did not destroy the Union, it simply reduced the numerical constituency of the Union.

Bernhard Thuersam, www.Circa1865.com

“Forecasts of Good Times a-Coming”

“The reputation of the region of the United States below the Potomac today suffers from the same forces from which the Middle Ages suffered at the hands of historians during the Enlightenment. Chroniclers of Southern history often do not grasp the most elementary concept of sound historiography: the ability to appraise the past by standards other than those of the present.

They accept a fanatical nationalism which leaves little room for sectional variations, a faith in Darwinian progress which leaves no room for static contentment, and a faith in the American dream of human equality which leaves little room for one person to get ahead of another except in making money.

In theory at least, our historians refuse to tolerate a concept of “all sorts and conditions of men” of which The Book of Common Prayer speaks.

Growing out of the uncritical acceptance by historians of the South of this creed of contemporary Americans are certain concrete dogmas: the church and state should be separate, but not the school and state; school but not church attendance should be compulsory; universal education is better than folk culture; political democracy is better than aristocratic rule; freedom is better than slavery; nationalism is better than provincialism; urban standards are better than rural ones; small farms are better than plantations; the larger the number of voters the better for the commonwealth; and the two-party system is better than the harmony of one party.

The historians who are friendly to the region and who accept the ideal of human equality seem ashamed of the degree to which the South has not attained this ideal. Their faith in the benefits of two political parties has led them to predict, for the past ten decades, the breakup of the Solid South and the coming of a state of rectitude like that of New York or Illinois.

They are apologetic over the existence in the South of the sharpest social distinction in all America: that between the white man and the Negro. They hail breaks on the color line as forecasts of the good times a-coming.”

(The Everlasting South, Francis Butler Simkins, LSU Press, 1965, excerpts pp. 4-5)

The South acquiesced to the inauguration of “His Fraudulency,” Rutherford B. Hayes, in the notorious national election of 1876 with the withdrawal of Northern troops from the South as well as promises of federal aid to Southern railroads. This election was a continuation of Republican election fraud in the South which herded freedmen to the polls while intimidating white Democratic voters. In order to win elections, the Democratic Party was to become as corrupt as their even worse political adversaries.

Bernhard Thuersam, www.Circa1865.com

“Visiting Statesmen” in Florida

“The smallest tadpole in the dirty pool of Secession,” as the New York Herald had described Florida in the war, had become something very different to The New York Times in 1876. Early in the morning after the election, that strong Republican paper, after accounting politically for every State in the Union but Florida, announced: “This leaves Florida alone still in doubt. If the Republicans have carried that State, as they claim, they will have 185 votes, a majority of one.”

The situation was not quite that simple, but Florida’s vote was that important. “Visiting statesmen” of both parties hastened to Tallahassee. Local partisans were active too. Some of the Republicans who came were . . . Governor Edward F. Noyes, of Ohio, who presented the Republican case and was said to have made some remarkable Republican promises . . .

Lew Wallace, the politician and novelist . . . described the Florida situation in a letter to his wife: “It is terrible to see the extent to which all classes go in their determination to win. Conscience offers no restraint. Nothing is so common as the resort to perjury . . . Money, intimidation can obtain the oath of white men as well as black to any required statement . . . if we [Republicans] win, our methods are subject to impeachment for possible fraud.

Fraud was national. It applied to the Presidency as well as railroad bonds. “Visiting statesmen” who came late showed no more scruples that carpetbaggers who came early or the scalawags whom they found.

The Republicans secured the vote of Florida, Louisiana and South Carolina. But the Florida vote remains more significant in view of Dr, Vann Woodward’s statement that the consensus of recent historical scholarship is that “Hayes was probably entitled to the electoral votes of South Carolina and Louisiana, and that Tilden was entitled to the four votes of Florida, and that Tilden was therefore elected by a vote of 188 to 181.”

(The Prince of Carpetbaggers, Jonathan Daniels, J.B. Lippincott Company, 1958, excerpts pp. 282-283)

Northern politicians in Congress regularly railed at postwar Southern elections whenever corrupt Republican-endorsed carpetbaggers were defeated, claiming voter suppression. The prewar political machines in Northern cities were notorious for gross election frauds and herding unlettered immigrants to the polls.

Bernhard Thuersam, www.Circa1865.com

Governing Voting Cattle in New York

“During the long years of drought, while the party of Lincoln “battened at the public crib,” vital fragments of the opposition [Democratic] party, much diminished and discredited in its national pretensions, had survived, nay, flourished — in the citadels of certain municipal machines. Thus the practiced demagogues of Tammany Hall retained for generations their grip over the polyglot proletarian mass of New York City.

A great proportion of the immigrant arrivals in the land of milk, honey, and gilded pavements clung to life in New York’s frightful slums, comprising one of the most ignorant, violent, lumpen proletariats in the modern world. For this rabble, traditionally, the rulers of the city’s dominant political organization provided bread and even circuses in the form of annual clambakes and excursions.

Tammany agents, meeting their poor Irish and foreign brothers at the dock, gave them advice and aid, food baskets, beer, and even work; in return the new arrivals permitted themselves to be inducted—sometimes at the rate of 1000 a day — as citizens and “voting cattle” into the Democratic party.

Like their predecessors, [Boss] Tweed and his partners, Sweeny and Connally, had long levied upon the numerous brothels, saloons, gambling dens, and criminal associations, through the city police and the courts. Commanding the preponderance of voters who ruled at the polls, they earned tolerant support of the leaders of society, business and professional life who also must dwell with some security in their city.

By 1870, the depredations of the [Tammany] ring went far beyond a “necessary evil”; they were no longer an “instrument” for governing voting cattle, but an immense piratical monopoly.

By the operation of public-works schemes, they plundered $1,000,000 a month from the city treasury, earning more in a year than Mr. Vanderbilt; they had added some $50,000,000 to the public debt, controlled banks and embarked with Jay Gould and Jim Fisk upon perilous, unsocial schemes to corner railroads and the money market, as in the Black Friday affair of 1869.

The masses of the people had been highly indifferent to reports of the Tweed Ring spoliations; indeed they were traditionally friendly to the Tammany leaders and heartily prejudiced against “reformers.” Tweed himself held that the majority of his supporters could not read what was said of him, but he ascribed his disasters to [political cartoonist] Tom Nast’s pictures, which required no reading.

Commenting upon the overthrow of Tweed and the appearance of a reform movement in a letter to Samuel Tilden, [Horatio] Seymour says with exquisite justice and wit: “Our people want men in office who will not steal, but who will not interfere with those who do.”

(The Politico’s, 1865-1896: The Spoilsmen in Power, Matthew Josephson, Harcourt, Brace and Company, 1938, excerpts pp. 151-153)

By 1860, the immigrant floods which spread westward in the 1840s and 1850s had changed the United States into two distinct cultures and political views. The South maintained its ties to the 1776 generation and its republican political character; the North had become a conglomerate of immigrant ethnic groups controlled by machine politicians eager for power and beholden to industrialists eager for cheap labor. Immigrant voters, wholly unfamiliar with American political concepts and traditions, were easily led by demagogues and money.

Bernhard Thuersam, www.Circa1865.com

Northern Prosperity at the South’s Expense

“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 – in [James] Buchanan’s day, in [Mark] Hanna’s, in [Warren] Harding’s – have been repellent enough; but the Grant era stands unique in the comprehensiveness of its rascality.

The cities, half of which had their counterparts in [New York’s Boss] Tweed; the legislatures, with their rings, lobbyists and bribe-takers; the South, prey of unscrupulous Carpetbaggers and Scalawags; the West, sacked by railway and mining corporations; Congress with its Credit Moblier’ [scandal], its salary-grab, its tools pf predatory business; the executive departments, honeycombed with thievery; private finance and trade, with greedy figures like Jay Cooke and Collis P. Huntington honored and typical – everywhere the scene was the same. Why?

The war explained much: its terrible strain upon all Ten Commandments; the moral exhaustion it produced; the waste and jobbery which it bred; its creation of vast new Federal responsibilities. Washington became an irresistible lodestone for crooked men.

The fecund war contracts, the tariffs, the subsidies, and [enlistment] bounties, huge appropriations for speculators and [pension] claim-agents, the opportunities for theft in both collecting and spending the swollen Federal revenues, drew them as honey draws flies.

The South was ruined, and the fine principles and traditions of its aristocracy were engulfed. The industrial revolution in the North wrought the roughest, most aggressive business elements to the front. As the West was settled with amazing rapidity, a more extensive and influential frontier than ever before gave manners a cruder cast.

Cities were filling up with immigrant communities, subservient to machine politicians. Everywhere tested standards, restraints of public opinion, the cake of custom, were broken down. Co0nditions of the day produced a new and flashier political leadership. They brought demagogues and pushing brigadiers into office; generals like Ben Butler and “Black Jack” Logan, vote getters like Oliver P. Morton and Zach Chandler, speculators like Oakes Ames.

But one fact must be emphasized. Contemporaneous with this corruption, geared to it as a motor is geared to the conglomerate machinery of a factory, was the tremendous industrial boom which followed the war. For eight years Northern business rollicked amid a flush prosperity.

With money easy, with fortunes rising on every hand, with the temptation to speculate irresistible, the whole tendency of American life conduced to greed.”

(Hamilton Fish, the Inner History of the Grant Administration, Allan Nevins, Dodd, Mead & Company, 1937, excerpts pp. 638-639)

It is estimated that as many as 20,000 Southerners emigrated to Brazil after 1865 to avoid the oppressive Northern domination of their homeland. They carried their antebellum cultural traditions with them, and notably, an anthropological study of the effects of television on Brazilians (Prime time Society, Kottak, 1990), found that the American “Confederados” tradition of literacy and reading created a hostility toward television.” Another reference (Diplomatic Relations Between the US and Brazil, Hill, 1932), raised the question as to why these Southerners moved “to a nation that had large numbers of black freedmen of full citizenship if one of their reasons for flight was repugnance at abolition in the South.”

Bernhard Thuersam, www.Circa1865.com

Postwar Despair and Flight

“Returning soldiers and war refugees expected to find their houses burned, family and friends missing, property stolen or confiscated, and plantations destroyed. One Southerner expressed his reservations about going back in this way: “It will be a sad homecoming, without a home to go to. The family circle is broken by the death of our boys, and many dear old friends will be missing. Then we are uncertain as to whether we shall be able to save enough from the wreck of our fortune to enable us to live in a very modest way.”

Describing South Carolina, J.S. Pike wrote:

“The banks were ruined. The railroads were destroyed. Their few manufacturies were desolated. Their vessels had been swept from the seas and rivers. The livestock was consumed. Notes, bonds, mortgages, all the money in circulation, debts, became alike worthless. The community were without clothes and without food . . . vast estates had crumbled like paper in a fire. While the shape was not wholly destroyed, the substance had turned to ashes. Never was there greater nakedness and desolation in a civilized community.”

Given the situation in the South at the end of the war, it is not surprising that many desired to leave and go elsewhere. The largest number relocated within the United States . . . But as many at 10,000 went into exile in foreign lands – most often to Latin America.

They despaired of the South’s ability to control its own destiny; they feared imprisonment and reprisals; and they hated the Yankees.

Premonitions of reconstruction horrors were common. Northern merchants and speculators moved into the Southern States after the war, taking away economic opportunities from Southerners.

“[On one postwar voyage to Brazil, our] . . . Captain was an Americanized Spaniard. We learned afterward that he had been bribed by the Yankees to wreck the vessel somewhere on the coast, and that is why he never sailed out to sea. Soon after the storm began, he tied up the helm and retired to his cabin leaving the whole crowd to the mercy of the waves and storm.”

(The Confederados: Old South Immigrants in Brazil, Cyrus B. & James M. Dawsey, editors, University of Alabama Press, 1995, excerpts pp. 13-14; 29)

Thomas Wentworth Higginson was a Unitarian minister in Massachusetts who identified with disunion and militant abolitionism during the 1840s and 1850s. He was deeply involved with the funding and arming of John Brown, was jubilant when Lincoln invaded the South, and became colonel of a black regiment of slaves taken from Southern plantations overrun and burned by Northern troops. In the postwar, Higginson came to realize what his prewar revolutionary zeal had unleashed, and to the chagrin of the Radical Republicans whose power then depended primarily on the freedmen’s ballot.

Bernhard Thuersam, www.Circa1865.com

The Republicans Bloody Shirt

“During the [1884] Massachusetts campaign Republicans frequently denounced the [Southern] Bourbons. [Senator George F.] Hoar stressed that his party was the true friends of the South. Republicans had sponsored bills to educate the section’s illiterates, had passed tariffs to protect its infant industries, and had adopted the war amendments to free all Southerners from the shackles of slavery . . . In a like tone Henry Cabot Lodge argued that the highest Republican duty was to preserve “the freedom and purity of the ballot box.”

In an open letter on “The Suppressed Negro Vote,” Higginson explained that he and other abolitionists . . . had studied “the Southern question apart from the bias of politics” and had come to the conclusion that colored men neither needed nor desired Northern aid.

After having corresponded with and talked to many of the South Carolina, Georgia and Florida Negroes who had served in his Civil War regiment . . . most of them admitted that they did not vote simply because they were uninformed and not interested in politics.

Higginson even condoned the enactment of complicated Southern election laws designed to confuse illiterate Negroes, such as the Eight-Box act requiring separate ballots and receptacles for each office being voted upon. Since only educated men could comprehend involved methods, these measure amounted to a literacy test and achieved what many Northern States decreed directly.

“The Massachusetts way,” Higginson went on, “is more honorable, no doubt; but suppose an attempt were made to import our system into South Carolina, it would at once be denounced as an outrage almost worthy of Mississippi.”

To Republicans, this reasoning was detestable. Former Governor John D. Long of Massachusetts had little use for “Col. Higginson and the Boston Advertiser [who] say “education should be on top.”

Asked why it so vigorously opposed the use of the war issues [to denounce the South], the New York Evening Post answered it was because Northern politicians had “never discoursed upon the suppression of the suffrage at the South, except as an argument for keeping themselves in power, and as a reason why the country should not be disgusted by the gross abuses in administration which the Republican party practiced, permitted and connived at.”

In the 1870’s [Republican party] Stalwarts had employed the theme “to reconcile us to the whiskey thieves and the knavish Cabinet officers of the Grant administration, and to the general corruption of the party in power.”

Under [Rutherford B.] Hayes, they had invoked it “to reconcile us next . . . to the abandonment by that statesman of even the slightest attempt to reform the civil service with which he began his Administration.”

Though last not least, [John] Blaine had stressed sectionalism during his 1884 campaign. “In short,” the Post announced, “during a period of fully fifteen years, whenever the Republican party was called to account for any shortcoming,” its sole answer was the bloody shirt.”

(Farewell to the Bloody Shirt: Northern Republicans and the Southern Negro, 1877-1912, Stanley P. Hirschson, Indiana University Press, 1962, excerpts pp. 132-134)

As General Samuel G. French suggests below, presidential expedients not found in the United States Constitution were invented for initiating war against the South, and for the prosecution of that war. French believed that the New England-armed men in Kansas were responsible for firing the first shot of the war; others have postulated that the war began when the Star of the West left its New York moorings in early January 1861, carrying armed men below decks to South Carolina – when Fort Sumter’s guns were turned against the Americans it was built to protect.

Bernhard Thuersam, www.Circa1865.com

A Constitution Inadequate to the Conduct of the War

“Sherman — the fell destroyer — had burned the city of Jackson, Mississippi, and the ruins reminded me of Pompeii. In walking one of the streets I passed a canvas shanty, from which I was hailed by an Israelite with “Good morning General; come in.” He had been in the army and knew me; he had some goods and groceries for sale. When I was leaving, he asked: “General, cant I do something for you? Here are fifty dollars, just take them; maybe you can pay me back sometime.”

I thought the angel of mercy was smiling down on us . . . I thanked him kindly, and the day came when I had the pleasure of repaying the debt. The servants I had in Columbus had been nominally “confiscated” and set free; so they came to me, almost daily, begging me to take them back to the plantation in Mississippi. As I was not able to do this, I applied to some “bureau,” that had charge of the “refugees,” for transportation of these Negroes, and to my surprise it was granted. As soon as possible they were put on the cars and started for the plantation.

When we reached home we found most of the old servants there awaiting our arrival. To feed and clothe about a hundred of these people, and to plant a crop of cotton in the spring, clothing, provisions, mules, wagons, implements, harness, etc., had to be procured. To obtain funds to purchase the articles enumerated — to commence again — I went to Philadelphia and New York (by special permission of the government) in November.

. . . War is the most uncertain of all undertakings of a nation, and, like the tempest, cannot be controlled, and seldom or never ends as predicted. The North proclaimed that this “little rebellion” would end in sixty days!

It lasted four years, and ended as no one had foreseen. It had to suppress rebellions caused by people who entertained Southern opinions in New York, Chicago, Cincinnati and other cities; muzzle the press, prohibit free speech, banish prominent individuals, arrest men without warrant, and imprison them without charges made known to them; and violated nearly every resolution and pledge made in the beginning relating to the South; they cast aside constitutional law, and substituted martial law, under which the South became a scene of desolation and starvation.

My own opinion is that the first gun was fired, at the instigation of a number of prominent men North, by John Brown at Harper’s Ferry, and for which he was apotheosized and numbered among the saints.

Mr. Lincoln said: “The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty, and we must rise with the occasion. Our case is new. We must think anew, and act anew. We must disenthrall ourselves, and then we shall save the country.”

These words indicate that the powers of the Constitution were inadequate to the conduct of the war, and henceforth the war must be conducted as occasion deemed expedient. In other words, the executive must be declared greater than the power that made it, or the creature greater than the Creator, and with dictatorial methods the war was conducted. Avaunt, Constitution, avaunt! We are fighting for the Union, for dominion over the Southern territory again, and so the Constitution was folded up, etc.”

(Two Wars, Samuel G. French, Confederate Veteran Press, 1901, excerpts, pp. 320-327)

The North’s Republican Party was solely responsible for the postwar Solid South which opposed their Reconstruction efforts, and the former utilized the newly-enfranchised freedmen to establish a Southern wing to maintain their national hegemony. To hold Northern votes the Republicans waved “the bloody shirt”; at the same time they swayed the black voter with warnings of newly-elected Democrats re-enslaving them.  Below, the home State of Carl Schurz was not Missouri, he was a socialist revolutionary from Erftstadt, Germany, and elevated by Lincoln to attract German immigrant support for his war.

Bernhard Thuersam, www.Circa1865.com

Republicans and the Freedmen’s Role

“One of the first [Northerners] to change his mind about the freedmen was Carl Schurz. In 1865, after a Southern tour, he had recommended that the Negro be enfranchised, disregarding the fact that “the [white] masses are strongly opposed to colored suffrage.” But in 1870, when he realized that uneducated Negroes were an easy prey for spoilsmen, Schurz admitted that he had erred.

To his disgust the [Republican] machine politicians in Missouri, his home State, dominated the scene by manipulating ignorant, but enfranchised, Negroes. Henceforth, Schurz steadfastly opposed all legislation designed to aid the colored man. And he assumed that anyone who tried to stir up sectional passions had yielded to the worst elements in the Republican organization.

Although the transition in the thinking of George William Curtis, the editor of Harper’s Weekly, was far different, he eventually reached the same conclusion. Like Schurz, Curtis after the war favored Negro suffrage. He argued that the freedmen had proven their loyalty and deserved the ballot. Admittedly, many of them were ignorant, but so were “great masses of Northern voters. Education,” he wrote, “is a good thing; but it appears some of the staunchest patriots in the land cannot read, and that some of the basest traitors are highly educated.”

During the 1880 campaign Harper’s Weekly vigorously denounced the Solid South. He then said that the Southern question was dead. The federal government could do nothing more to help the Negro. After that, Curtis joined Schurz in resisting all attempts to stir up the race issue.

A third distinct case was Edwin L. Godkin of the Nation. Although he begrudgingly advocated the enfranchisement of the Negro after the Civil War, he never abandoned the conviction that white Anglo-Saxons were inherently superior to “ignorant foreigners” and atavistic colored men. “I do not oppose the admission [to suffrage] of such Negroes as shall prove their fitness,” Godkin wrote in 1865. “. . . What I ask, and meant to ask, was not that the blacks shall be excluded as blacks, but simply that they shall not be admitted to the franchise simply because they are blacks and have been badly treated.”

Godkin recommended the disenfranchisement of all Negroes who could not learn to read or write within two years. Only by developing his intelligence could the colored man distinguish between “statesman and demagogue; between honest public men and knavish public men; between his own real friends and his real enemies.”

Although Godkin originally supported the Radical plan of Reconstruction, which provided for military enforcement of Negro suffrage, he was convinced by 1871 that this adventure had failed.

“We owe it to human nature to say that worse governments have seldom been seen in a civilized country,” the editor admitted. “They have been composed of trashy whites and ignorant blacks.” Control of Southern affairs should be returned to those “who have most influence and knowledge.” The simple truth was that the freedmen were unfit for the role the Republicans desired them to play: “Any party in which the Negro is in the majority, cannot help having its policy, if not shaped, greatly influenced by their political ignorance and incapacity.”

(Farwell to the Bloody Shirt, Northern Republicans and the Southern Negro, 1877-1912, Stanley P. Hirshson, Indiana University Press, 1962; excerpts pp. 126-128)

One of the outcomes of the devastation and destruction was a need for Southern men to find employment and rebuild their impoverished section, and this most often meant working under the direction of the conqueror. Though Lee refused “to accept a sinecure from a Northern business concern,” many former Confederate officers became the agents or attorneys of the invading capitalists and “took action that had all the earmarks of scalawagism”, in the words of the author below.

Bernhard Thuersam, www.Circa1865.com

The South and Northern Finance Imperialism

“One of the prices the South pays for its progressive industrialization is increasing servitude to Northern capital. New York has grown into the most autocratic city-state of modern times, with the Southern province of the United States as one of its important colonies.

The great financial houses of that and kindred cities control most of the region’s strategic industries, having sent out a second and third generation of carpetbaggers to found factories or to purchase those already existing. The Southern industries owned and controlled by outsiders include the region’s railroads, its coal fields, its iron reserves, its electric power, and its gas, Sulphur, and oil sources.

The existence of Northern patent monopolies and the absence of local machine manufacturing permit outside direction even of industries locally owned. The South manufactures its own cast-iron pipes, steel rails and bridges, and oils, but not its hardware, locomotives, automobiles, clocks, radios, dynamos, drugs, and many other finished products requiring the highest skill to produce and bringing in the highest profits.

Retail profits are siphoned out of the section by Northern-owned chain stores. The Southern businessman usually is a mere factor or agent of Northern principals, who control both production and distribution. His function is to sell [Northern articles] endeared to the Southern public through advertising. Some of these articles are as worthless as the wooden nutmegs the Yankee peddler is said to have imposed upon the public in ante-bellum times.

In 1937, economist David Coyle estimated that the South was paying out a billion dollars annually in excess of its income. It balanced its credit by selling property to investors from other sections of the country, by borrowing, by going bankrupt, and by destroying forests and lands to secure immediate incomes.

The possibility of the South revolting against its debtor status, in the manner of the Revolutionary planters against their British creditors, is ruled out by the outcome of the Civil War. That Southern leaders are able to reconcile the sons and grandsons of those who followed Robert E. Lee and William Jennings Bryan to the economic domination of the North caused Benjamin Kendrick to cry out bitterly in 1942:

“We are confronted by a paradox more amazing and ironical than any ever conjured by the imagination of Gilbert and Sullivan. The people of the South, who all their lives have suffered deprivation, want, and humiliation from an outside finance imperialism, followed with hardly a murmur of protest, leaders who, if indirectly, were nonetheless agents and attorneys of the imperialists.” What was true in 1942 is truer thirty years later.”

(The Everlasting South, Francis Butler Simkins, LSU Press, 1963, excerpt pp. 55-57)