Circa1865

With the South out of Congress since 1861 and no Southern leadership to provide a conservative and responsible voice in US government, the predictable occurred. As a soldier Grant was a butcher who sent wave after wave of new recruits to wear down the thin Southern brigades; as a politician, Orville H. Browning of Illinois described Grant as “weak, vain, ignorant, mercenary, selfish and malignant”; that he was surrounded by corrupt and unprincipled men and that his reelection would be a great calamity to the country.” Grant’s election in 1868 was achieved with a few hundred thousand freedmen votes, they herded to the polls by the Republican’s terrorist Union League.

Bernhard Thuersam, www.Circa1865.com

Union Saved for Corrupt Republican Party Hegemony

“The eight years of Grant’s administration rocked with one scandal after another. Citizens defrauded the government in the acquisition of land and in claims for [Northern veteran] pensions; contractors supplying the army and navy were often venal; and unscrupulous lawyers levied toll on ignorant and defenseless Indians.

Members of Congress were bribed and disgraced. Cabinet officers were investigated and impeached. Subordinate officials and employees were revealed in outright betrayal of public trust. Never had the Republic sunk to so low an estate of official morality.

During the 1870s there was both incompetence and dishonesty in the large customhouses; discipline and integrity among the navy-yard labor forces were at a low ebb; the Indian service had been roundly condemned by [James] Garfield; land agents connived at irregularities, and surveyors made fraudulent claims for work not performed.

The tone of the eight years of Grant’s administration was . . . set by a small number of weak and unreliable persons holding seats in Congress and in high executive office. It was during these years that the most resounding scandals occurred, not only in Washington but in many States and cities. When the mighty wandered far from the paths of rectitude, it was not surprising that some of the lesser ranks followed their example.

To a few of the scandals we turn . . . The Credit Mobilier . . . originally organized to finance railroad construction, [it] fell into the control of a group of adventurers, including a member of Congress, Oakes Ames. The corporation was awarded a lucrative but fraudulent contract for the . . . [Union Pacific Railroad and disgraced Grant’s] Vice Presidents Colfax and Wilson.

Laxness or corruption in the award of Indian trading posts had been suspected for some time under General [William] Belknap’s administration of the War Department. [Secretary of the Navy George M. Robeson levied] percentages on . . . contractors’ engagements with the navy, [and] Robeson grew rich. [Secretary of the Treasury John D. Sanborn, a protégé of Benjamin Butler, siphoned money destined for the Internal Revenue Service].

The most dramatic and perhaps the most damaging evidence of corruption during the Grant administration involved the evasion of internal revenue taxes on distilleries. Fraud had long been suspected [and persons involved] included General John A. McDonald, collector of internal revenue in St. Louis . . . other collectors, the chief clerk of the internal revenue division of the Treasury Department in Washington [and] General Orville Babcock, President Grant’s private secretary, who was subsequently indicted but who escaped conviction.”

(The Republican Era, 1869-1901, A Study in Administrative History, Leonard D. White, Macmillan Company, 1958, excerpts pp. 366-373)

Richmond citizens quietly observed Independence Day, 1865 with enemy troops occupying their city — celebrating their triumph in vanquishing the American defenders of that city.

Bernhard Thuersam, www.Circa1865.com

Occupied Richmond, July 4th 1865

“The 4th of July may be said to have been celebrated in Richmond this year. Cannon were fired at morning, noon and night. A few Chinese crackers were fired off by vagabond boys, white and black, at the corners of the streets in the early morning and in the evening, their pyrotechnic resources, I take it, being too scanty not to make it advisable to husband them to closely.

In the morning, a flag was hoisted on the Spottswood Hotel, and a short speech made from the roof of the building by [occupation forces commander] General Osgood. Somewhat later in the day a small crowd, made up mainly of Negroes and Union soldiers, with a sprinkling of citizens and children, congregated in the Capital Square. A lady was introduced to the assembly and read the Declaration of Independence, but in so low a tone and amid such noise of talking and walking about as made it quite impossible for anyone to hear her. The conclusion of her reading was marked by music from a military band which was in attendance.

Speeches were then made by a surgeon and two chaplains, and after a benediction the company dispersed. No applause was elicited by any of the speakers. The soldiers evidently were in the character of onlookers; the Negroes were doubtful if they were expected to applaud or would be allowed to do so (they were carefully removed by the soldiers detailed as police from the crowded steps near the speakers’ stand); and as for the citizens — to ask any men, Unionist or secessionist, to hear such speeches and applaud them would be asking too much.

All places of business were closed throughout the day, but the city wore no holiday aspect. That part of the rebel population which appeared in the streets were seemingly indifferent spectators of what went on around them. The boys and the Negroes, and the Union soldiers in a graver way, alone seemed to enjoy the occasion.”

(The South As It Is, 1865-1866, John Richard Dennett, Viking Press, 1967, pp. 9-10)

The University of North Carolina survived the war but found itself in desperate condition when Northern carpetbaggers and local scalawags assumed control of State government in 1868. Historian Hugh Talmage Lefler wrote: “Lack of public confidence, financial support, and students closed the University in 1870. A student expressed it graphically when he wrote of a classroom blackboard: “Today this University busted and went to hell.” The University was reopened in 1875 after North Carolinians regained political control of their State.

Bernhard Thuersam, www.Circa1865.com

Vandals and Goths at Chapel Hill

“Of the seventy-eight new Trustees of the University, only four had been members of the former Board, and they were men who had seldom attended meetings of the Trustees and really cared very little about the fate of the University. At the meeting of the new Board in Raleigh, in June 1868, several names were brought forward for the presidency.

After several days of travail the Board brought forth Mr. Solomon Pool, a native of Elizabeth City, North Carolina . . . To be sure, he had no “established reputation” for scholarship, though he was a man of some ability. Immediately after the close of “The War” in 1866, Mr. Pool had resigned his position as Tutor in the University to take a job as a Deputy Appraiser in the Revenue Service of the hated Reconstruction Government, allying himself with the Republican party.

The word “opportunist” had not been invented, but “traitor,” “renegade,” and “apostate” were freely hurled at his complacent head. Mr. Joseph [Engelhard], editor of the Wilmington Journal, said in one issue of his paper that the University was “infested with pismires” (termites?) and the very next week he wrote that it was “presided over by nincompoops.”

The Board of Trustees had its own troubles in forming a new faculty. Mr. S.[S]. Ashley, a Massachusetts Yankee, who was Superintendent of Public Education, placed a relative, James A. Martling, in the “Chair of Belles Lettres,” whatever that means. The Martling family occupied the house recently made vacant by my grandfather’s death, and June Spencer and I, living next door, watched with scornful eyes the daughters of the family . . . with their village beaux on the piazza or strolling in the moonlight, but there was no communication between us.

George Dickson, Professor of Agriculture, was a Friend from Philadelphia who came South as a missionary to the Negroes. He brought Bibles, Testaments, and hymn books from the good Quakers of his city, a fine and generous gesture – if only the recipients had been able to read. Friend Dickson went to England to inquire into some new ideas in agriculture for the benefit of the South. He never came back.

During the first year of the Reconstruction Administration there were thirty-five students in attendance . . . just little bare-foot boys from the village and the adjoining country, with their home-made breeches held up by a string across one shoulder, and their dinner in a little tin bucket. Now and then a small black face appeared among them. None of them knew what it was all about. It was just a grand frolic for them to be “goin’ to college.”

Nor were the pupils altogether appreciative of their advantages. We find one A.J. Banks haled before the faculty for non-attendance upon his classes. His excuse was that he did not want to study Greek, nor did he want to stay in college with “them Yanks.”

The grim record shows that the Archives of the Literary Societies were broken into and their contents scattered. A box of Siamese curios presented to the University by the Reverend Daniel McGilvary, a Presbyterian missionary to Siam, was broken, and objects of rare beauty and great value stolen or destroyed. Scientific apparatus was smashed into bits, and great damage was done to the buildings and libraries of the University . . . owls and bats flew in the broken windows of the buildings, the campus was a jungle of weeds, cattle and hogs roamed the unlighted streets at night.

From a charming, dignified home of cultured people, who enjoyed a gracious society, Chapel Hill had become a desolate, silent wilderness. Even the strangers who composed the puppet faculty disliked each other, the village, the State, and the institution they were expected to serve.”

(A Rare Pattern, Lucy Phillips Russell, UNC Press, 1957, pp. 45-49)

Considered one of Wilmington, North Carolina’s antebellum architectural treasures, the Dr. John D. Bellamy mansion was seized by Northern General Joseph R. Hawley in February 1865 for use as his headquarters while occupying the city — ironically, Hawley was a native North Carolinian. Bellamy’s daughter Ellen was a young girl at the time and later recalled vivid memories of the enemy invasion.

Bernhard Thuersam, www.Circa1865.com

Northern Vandals Liberate Wilmington Furniture

“The Federal troops captured Wilmington on February 21, 1865; they took possession of our home, which we had temporarily vacated, and it remained General Hawley Headquarters a long time, even after Lee’s surrender. It was very galling . . .”

[Mother] came up to own dear house, accompanied by a friendly neighbor . . . who was related to General Hawley, and had offered to introduce her. It was most humiliating, and trying, to be entertained by Mrs. Hawley, in her own parlor. Mrs. Hawley showed her raising by “hawking and spitting” in the fire, a most unlady-like act. During the call she offered Mother some figs (from Mother’s own tree) which Aunt Sarah had picked — our own old cook, who had been left there in charge of the premises.

My father made several trips to . . . Washington City before they would grant him his “Pardon.” For what? For being a Southern Gentlemen, a Rebel, and a large Slave Owner! The slaves he had inherited from his father, and which he considered a sacred trust. Being a physician, he guarded their health, kept a faithful overseer to look after them (his home being a regular drug store), and employed a Methodist minister, Rev. Mr. Turrentine, by the year, to look after their spiritual welfare.

Although the war was practically over seven months, we did not get possession of our home ‘till September. [T]he beautiful white marble mantles in the two parlors were so caked with tobacco spit and garbs of chewed tobacco, they were cleaned with great difficulty; indeed, the white marble hearths are still stained . . . No furniture had been left in the parlors . . . On leaving here, the Yankees gave [the] furniture to a servant . . .” In our sitting room, our large mahogany bookcase was left, as it was too bulky for them to carry off; but from its drawers numerous things were taken, among them an autograph album belonging to me brother Marsden.

A number of years later, when my brother John was in Washington as a member of Congress, this same Hawley, then a senator from Illinois, told him of the album “coming into his possession” when he occupied our house, and said he would restore it to him. However, he took care not to do it, although repeatedly reminded.”

(Back With The Tide, Memoirs of Ellen D. Bellamy, Bellamy Mansion Museum 2002, pp. 5-8)

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

Bernhard Thuersam, www.Circa1865.com

The Anticipated Profits of Next Year’s Pay Checks

“July 3, 1930

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

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

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

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

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

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

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

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

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

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

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

Congressman Louis T. McFadden of Pennsylvania was Chairman of the House Banking and Currency Committee in 1932, and a staunch opponent of the Federal Reserve. Along with Congressman Charles A. Lindbergh, Sr. he fought the Federal Reserve Act in 1913 and conducted one of the first investigations of the banking and money trust in Congress. The path to the Federal Reserve act began with Lincoln who admitted that “as a result of the war, corporations have been enthroned and an era of corruption in high places will follow and the money power of the country will endeavor to prolong its reign by working on the prejudices of the people until wealth is aggregated in the hands of a few and the Republic is destroyed.” Lincoln destroyed the Republic with war, invasion, fiat money and the marriage of business and government.

Bernhard Thuersam, www.Circa1865.com

McFadden and the Federal Reserve

“Friday, June 10, 1932

Mr. McFadden: Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt.

This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal Reserve Banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.

In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

Those 12 credit monopolies were deceitfully and disloyally foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institutions. Those bankers took money out of this country to finance Japan in a war against Russia.

They created a reign of terror in Russia with our money in order to help that war along. They instigated a separate peace with Germany and Russia and thus drove a wedge between the allies in the World War. The financed Trotsky’s mass meetings of discontent and rebellion in New York. They paid Trotsky’s passage from New York to Russia so that he might assist in the destruction of the Russian Empire.

They fomented and instigated the Russian revolution and they placed a large fund of American dollars at Trotsky’s disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun the breaking up of American homes and the dispersal of American children.”

(Collective Speeches of Congressman Louis T. McFadden, Omni Press, 1970 pp. 298-299)

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

Bernhard Thuersam, www.Circa1865.com

Vichy Rule in North Carolina

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

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

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

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

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

Senator John C. Calhoun classified communities into taxpayers and tax-consumers – the former favoring lower taxes, the latter favoring increased taxes, and a wider scope of government power. He wrote of “spoils” in its narrow sense as consisting of bounties and appropriations flowing directly from the public treasury. In the wider sense, he viewed spoils as advantages derived, directly or indirectly, from government action.

Bernhard Thuersam, www.Circa1865.com

A Vigilant Corps of Government Dependents

“When [government] offices, instead of being considered as public trusts, to be conferred upon the deserving, were regarded as the spoils of victory, to be bestowed as rewards for partisan services, without respect to merit; when it came to be understood that all who hold office hold [it] by the tenure of partisan zeal and party service, it is easy to see that the certain, direct and inevitable tendency of such a state of things is to convert the entire body of those in office into corrupt and supple instruments of power, and to raise up a host of hungry, greedy, and subservient partisans, ready for every service, however base and corrupt.

Were a premium offered for the best means of extending to the utmost the power of patronage, to destroy the love of country, and to substitute a spirit of subserviency and man-worship: to encourage vice and discourage virtue, and, in a word, to prepare for the subversion of liberty and the establishment of despotism, no scheme more perfect could be devised; and such must be the tendency of the practice, with whatever intention adopted, or to whatever extent pursued.

[Add to this] the greater capacity, in proportion, on the part of government, in large communities, to seize on and corrupt all the organs of public opinion, and thus to delude and impose on the people; the greater tendency in such communities to the formation of parties on local and separate interests, resting on opposing and conflicting principles . . . Among them, the first and most powerful is that active, vigilant and well-trained corps which lives on the government, or expects to live on it, which prospers most when the revenue is greatest.

The next in order – when the government is connected with the banks, when it receives their notes in its dues, and pays them away as cash, and uses them as its depositories and fiscal agents – are the banking and other associated interests, stock-jobbers, brokers, and speculators; and which, like the other profit the more in consequence of the connection – the higher the revenue, the greater its surplus and the expenditures of the government.”

(The Life of John C. Calhoun, Gustavus M. Pinckney, Bibliolife (original 1903), excerpts, pp. 106-110)

Though the American republic begun by compromise showed signs of stress and splinter by 1832, the statesmen of the conservative South exercised leadership and accommodation toward the North and maintained peace. Only four years after the sectional Republican Party fielded a radical presidential candidate in 1856, several States had left the Union rather than submit to hostile Northern rule and despotism.

Bernhard Thuersam, www.Circa1865.com

Vindication for the South

“At some future day, when the actors have passed away, a true and impartial history of the great Civil War and its causes will be written, for it was too notable an event to remain as a mere item in the course of God’s providence. Then the truth, and the whole truth, will appear, and the world will be surprised to learn how much the South has been misrepresented, the motives and doctrines of her public men distorted, and even the private life and social habits of her people caricatured for political purposes.

Those who were inimical to the South, or were, at least, instigated by motives of political necessity to misstate the facts or to suppress a part of the truth, have had the opportunity to publish their statements and to impress them upon the public mind of the present generation, with hardly an effort of retort or correction on behalf of the Southern people.

But the history of the past cannot be wholly forgotten. It must be and is known that in the pure days of the Republic, before the tyrannous “caucus” and the iniquitous “machine” had usurped the control and direction of the public will – when men were judged upon their merits, and political parties were separated by honest diversity of opinion, and not by sectional – the South, though greatly inferior in voting power, furnished four out of five consecutive Presidents. She has given such men as Clay, Calhoun, Crittenden, Crawford, and Forsyth to the public service since the great struggle for independence, and the greatest of the chief justices was a Southerner.

She has contributed many gallant and able men to the army and navy. The “Father of the Country” was a Virginia planter, and even Farragut, who made his reputation in helping to defeat the South . . . was by birth, by early training, by marriage, by all the domestic and social associations of life, a Southern man . . . ”

I have mentioned but a small number of the Southerners who helped elevate the national fame before dissention and distrust had alienated the two sections, and I feel sure the day will come when justice will be done to the Southern leaders of 1861-65, and that an impartial posterity will by its verdict free their names from the calumnies which have been spoken against them, and will pronounce a retributive censure upon their traducers.”

(The Secret Service of the Confederate States in Europe, James D. Bulloch, Sagamore Press, 1959, pp. 349-351)

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

Bernhard Thuersam, www.Circa1865.com

Reconstruction, the Most Shameful Period of Our History

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

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

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

And again he said:

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

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

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