Circa1865

North Carolina’s Senator Sam Ervin was a conservative Democrat of the old stripe, and stern advocate of a balanced federal budget. He wisely counseled that Congress had two simple fiscal choices: either to levy taxes sufficient to cover its appropriations, or, reduce appropriations to match federal income.

Bernhard Thuersam, www.circa1865.org

Foreign Aid and Santa Claus

“The foreign aid program had a benign beginning in the Marshall Plan, which merits the highest praise because it rehabilitated Western Europe in large measure from the economic devastation of the Second World War. As the programs implementing this Plan were nearing final consummation, President [Harry] Truman appointed a Commission headed by Secretary of Commerce Charles P. Sawyer to study foreign aid and make recommendations concerning its future. [This Commission] made a thoughtful report pointing out infirmities inherent in indiscriminate programs of this nature, and suggested the wisdom of terminating foreign aid with the consummation of the Marshall Plan.

Unfortunately, the report was made about the time Dwight D. Eisenhower was elected President, and has been ignored in subsequent times. The United States could have had intelligent and productive foreign aid programs with much less expenditures since that time if it had restricted its aid to truly needy nations, and to the financially insufficient nations . . .

Instead of doing this, the United States has converted itself in large measure into an international Santa Claus, who scatters untold billions of dollars of the patrimony of our people among multitudes of foreign nations, some needy and some otherwise, in the pious hope that American can thereby purchase friends and peace in the international world, and induce some foreign nations to reform their internal affairs in ways pleasing to the dispensers of our largess.

On one occasion, the Administrator of Foreign Aid confessed to a House subcommittee, which had oversight of the matter, that he was unable to inform it at the time the names and numbers of the foreign nations then receiving foreign aid from the United States.

I voted for foreign aid during my first year in the Senate on the theory that it was 51 percent wise and 49 percent foolish. Afterwards, I opposed all foreign aid bills . . . [and] I reminded Senators that every cent our country had expended in financing the foreign aid programs had been obtained by deficit financing. I added:

“If an individual were to borrow money to give it away, his family would institute a lunacy proceeding against him and have a guardian named to manage his affairs on the ground he lacked the mental capacity to perform the task himself. But if an American politician advocates that the United States borrow money by deficit financing and scatter it abroad among potential friends and foes alike, he is likely to be elected President or Senator or Representative, or to be appointed Secretary of State of Administrator of Foreign Aid.”

(Preserving the Constitution, The Autobiography of Sam Ervin, The Michie Company, 1984, pp. 80-81)

The South after 1865 not only became an economic colony for Northern interests, but also fell prey to the vices associated with the relentless and unbridled pursuit of profit inherent in the Northern culture.

Bernhard Thuersam, www.circa1865.org

Inheriting Northern Problems

“During the decade of the twenties, the South surpassed New England in textile manufacturing. A growing percentage of owners of Southern mills were absentee Yankees. In 1929 the region’s first serious labor revolts occurred, and Communist agitators were discovered among the rioters in Gastonia, North Carolina. There could no longer be any doubt that industrialization threatened to bring change. Some Southerners questioned the wisdom of continuing to heed the advocates of the “New South.”

If the South proceeded in remaking herself in the image of the North, would she not fall heir to those Northern problems from which she had fancied herself immune? Chief among the literary expressions of reaction was “I’ll Take My Stand,” published in 1930. A defense of agrarianism and individualism, it was the work of twelve Southern writers, most of them associated with Vanderbilt University in Nashville, Tennessee. During the 1920’s, four of their number (John Crowe Ransom, Allen Tate, Robert Penn Warren, Donald Davidson) published “The Fugitive,” a significant magazine of poetry and criticism.

Later in the decade with the nation seemingly committed to materialism and the South in ferment, they began their quest for Southern identity. They found the good life in an agrarian society where ideals meant more than money — in the South before 1880 — and they recommended it to a nation which had lost its balance. Like the Fugitives, Ball found the cherished personal virtues — the code of the upcountryman — secure only in the land. But because his arena was political, he saw the happier life also dependent upon conservative government.

(Damned Upcountryman, William Watts Ball, John D. Starke, Duke Press, 1968, pp. 151-152)

Of German and English parentage, Lincoln’s chief of staff Henry W. Halleck married the granddaughter of Alexander Hamilton and in early 1861 was worth $500,000 from a career in railroads and banking. He predicted that the North “will become ultra anti-slavery, and I fear, in the course of the war will declare for emancipation and thus add the horrors of a servile war to that of a civil war.” While Halleck directed the propaganda war and often withheld casualty figures from the Northern press, Lincoln’s Secretary of State William H. Seward scoured Europe for mercenaries to fight against Americans struggling for independence.

Bernhard Thuersam, www.circa1865.org

Propaganda to Sustain the Northern War Effort

“Politically, Old Brains served Lincoln well. When the President decided to fire a general he had Halleck sign the order; thus the general’s supporters blamed Halleck for the dismissal. Lincoln liked to assume a pose of weakness and simplicity and to give the impression that others were controlling him. When friends enquired about a military move, Lincoln would say, “I wish not to control. That I now leave to General Halleck,” or “You must call on General Halleck, who commands.”

To Horatio G. Wright, commander of the [Northern] garrison at Louisville, Kentucky, Halleck clarified the issue: “The Government seems determined to apply the guillotine to all unsuccessful generals.” Ruefully he added: “It seems rather hard to do this where a general is not in fault, but perhaps with us now, as in the French revolution some harsh measures are required.” Halleck’s realization demonstrated his growing insight of the necessary interrelation of war and politics in a democracy.

[Halleck] struggled for efficiency against [an] entrenched and powerful enemy, the [Republican] politicians, who wanted to include the army in the spoils system.

Writing to a civilian who was active in army reforms, Francis Lieber, Halleck expressed a fear that the governors would build up a “northern States rights party that would eventually overpower all Federal authority.” He had cautioned Lincoln, but “no heed [was] given to the warning,” and now “approaching danger is already visible.”

Since the North was in legalistic confusion during the war, there were other areas where Halleck needed [Prussian liberal Francis Lieber]. The government’s official policy that the Southern States had not withdrawn from the Union, meant that the Confederate armies were mere rebellious mobs and were therefore not protected by established rules of civilized warfare.

But Union generals could not slaughter every captured Confederate, or their own men would receive similar treatment when they were seized. The Northern populace needed a heavy diet of propaganda to sustain their fighting spirit and the government had to cater to them. The Confederacy’s inadequate prison camps . . . were the soup de jour on the propagandists’ menu.

Halleck contributed his share of atrocity stories. In his annual report for 1863, he said that the North treated Rebel prisoners with “consideration and kindness,” while the Confederates stripped Union officers of blankets, shoes even in winter, confined them in “damp and loathsome prisons,” fed them on “damaged provisions, or actually starved [them] to death.”

Others were murdered “by their inhuman keepers,” and the “horrors of Belle Isle and Libby Prison exceed even those of “British [floating prison] Hulks” or the “Black Hole of Calcutta.” Southerners [he claimed] applauded these “barbarous” acts as a “means of reducing the Yankee rank.” Laws of war justified retaliation and the “present case seems to call for the exercise of this extreme right,” he concluded.

[Halleck’s] General Orders No. 100 were entitled] “Instructions for the Government of Armies of the United States in the Field,” [and] Southerners denounced it for legalizing crime [committed by Northern forces]. [Lieber, like Clausewitz] believed that total war could not and should not be limited [and] said that restrictions on violence – such as General Orders 100 – were “hardly worth mentioning.”

(Halleck, Lincoln’s Chief of Staff, Stephen E. Ambrose, LSU Press, 1990 (original 1962), pp. 65; 88; 102; 104; 128-131)

In his message to Congress on 29 April 1861, President Jefferson Davis cited the Northern threat to the South’s labor system as a cause of withdrawal from political union with the North. The murderous raid of John Brown in 1859 had convinced the South of the North’s violent intentions, which were supported by influential and wealthy men.

Bernhard Thuersam, www.circa1865.org

Indispensable African Slaves

“As soon . . . as the Northern States that prohibited African slavery within their limits had reached a number sufficient to give their representation a controlling voice in the Congress, a persistent and organized system of hostile measures against the rights of the owners of slaves in the Southern States was inaugurated and gradually extended. A continuous series of measures was devised and prosecuted for the purpose of rendering insecure the tenure of property in slaves . . .

Senators and Representatives were sent to the common councils of the nation, whose chief title to this distinction consisted in the display of a spirit of ultra-fanaticism, and whose business was . . . to awaken the bitterest hatred against the citizens of sister States, by violent denunciation of their institutions; the transaction of public affairs was impeded by repeated efforts to usurp powers not delegated by the Constitution, for the purpose of . . . reducing those States which held slaves to a condition of inferiority.

In the meantime, the African slaves had augmented in number from about 600,000, at the date of the adoption of the constitutional compact, to upward of 4,000,000. In moral and social condition they had been elevated from brutal savages into docile, intelligent and civilized agricultural laborers, and supplied not only with bodily comforts but with careful religious instruction.

Under the supervision of a superior race, their labor had been so directed as not only to allow a gradual and marked amelioration of their own condition, but to convert hundreds of thousands of square miles of the wilderness into cultivated lands covered with a prosperous people; towns and cities had sprung into existence, and had rapidly increased in wealth and population under the social system of the South . . . and the productions of cotton, sugar, and tobacco, for the full development and continuance of which the labor of African slaves was and is indispensable, had swollen to an amount which formed nearly three-fourths of the exports of the whole United States and had become absolutely necessary to the wants of civilized man.

With interests of such overwhelming magnitude imperiled, the people of the Southern States were driven by the conduct of the North to the adoption of some course of action to avert the danger with which they were openly menaced.”

(The Causes of the Civil War, Kenneth M. Stampp, editor, Prentice-Hall Inc., 1965, pp. 134-135)

As one of Lincoln’s cabinet members, Gen. Henry Halleck advised him in mid-1862 that enlistments had ceased and few new volunteers were to be had. A new system was devised to attract “patriots” and the large enlistment bounties paid by New York State alone accumulated a bounty-debt of $26 million, and the overall Northern debt from bounties was nearly $3.5 billion. In addition, Ireland, England and Europe were scoured for Lincoln’s patriots.

Bernhard Thuersam, www.circa1865.org

Searching for Irish Cannon-Fodder

“The Federal government encouraged [the Irish immigration] movement not only to relieve labor shortages but to replenish the ranks of the Union army, which by 1863 had been seriously depleted by casualties and desertions (It is important to note that General Halleck had admitted in 1862 that enlistments had ceased, and few new volunteers were to be had) . . . There is no doubt that the North relied heavily on immigrant soldiers. The best evidence of this lies in a study of the correspondence between [Secretary of State William] Seward and Federal representatives abroad. In May 1861, Henry S. Sanford, American Minister to Belgium, suggested to Seward that as the Lincoln administration apparently intended to rely primarily on volunteers for the army, it was not too early to look abroad for recruits . . . and the Confederates quickly took note of it [as] Dudley Mann, Southern Commissioner to Belgium, informed his government that Federal agents were busy in Ireland and Central Europe.

On August 22, 1862, Thomas A. Dudley, US Consul at Liverpool, informed Sanford that an agent, E. Bell, would guarantee fifty thousand Irish recruits — for a consideration — and urged Sanford to come to Liverpool to close the deal.

John Bigelow, American consul general at Paris advised Seward late in August 1862 to send all Federal consuls in Europe full particulars about bounties paid to volunteers . . . Mercenary soldiers were uppermost in Seward’s mind, for on September 19, 1862 he wrote Bigelow that “to some extent this civil war must be a trial between the two parties to exhaust each other. The immigration of a large mass from Europe would of itself decide it.” While it was an easy matter to entice Irishmen to the United States, it was equally easy to enlist them on arrival. Simply informing the penniless immigrants of the large bounties was often sufficient. Even more attractive were the large sums offered by speculators who secured substitutes for Northerners who wished to avoid the draft.

[Often] the immigration authorities simply detained unwilling prospective recruits for specious reasons until they were either destitute or desperately in debt to unscrupulous loan sharks. At this point the enlistment bounties became indispensable to the immigrant. Confederate counteractivity was intensified in July 1863 when Secretary of State Judah Benjamin dispatched Lt. J.L. Capston as a special agent to Ireland. A native of Ireland . . . Capston was to inform the Irish masses by every means he could “of the true purposes of those who seek to induce them to emigrate.”

(The Unequal Duel: Union Recruiting in Ireland, 1863-1864, Charles P. Cullop, Civil War History, June 1967, Volume 13, Number 2; pp. 101-107)

Americans in the South had no reason for repentance after being crushed militarily, and in no way did the radical Republican party which destroyed the Founders’ union of 1787 recognize the principles of that Declaration which it did all in its power to subvert.  Had there been no Republican party, the Union would indeed have been saved, peaceful Christian charity and time would have ended slavery, equality under the law would have reigned as provided in the United States Constitution, and no Northern citizens and editors would have been imprisoned in American bastilles for opposing Republican Jacobin political hegemony.

Grant’s vice-president “Smiler” Colfax would be brought down by the Credit Mobilier scandals which bribed high government officials with cash and stocks; he was replaced as vice president in 1872 with another corrupt Republican, Henry Wilson.  Colfax went on to further infamy as a political boss whose expertise was rigging elections.  Below, he accepts the 1868 nomination.

Bernhard Thuersam, www.circa1865.org

Colfax’s Myth of Saving the Union

Letter of acceptance of the vice-presidential nomination, National Union Republican party, 29 May, 1868:

“The debt of gratitude [my acceptance] acknowledges to the brave men who saved the Union from destruction, the frank approval of amnesty based on repentance and loyalty, the demand for the most thorough economy and honesty in government, the sympathy of the party of liberty with all throughout the world who long for the liberty we here enjoy, and the recognition of the principles of the Declaration of Independence, are worthy of the [Republican party] on whose banners they are to be written in the coming contest.

Its past record cannot be blotted out or forgotten. If there had been no Republican party, Slavery would to-day cast its baneful shadow over the Republic. If there had been no Republican party, the free press and free speech would be unknown from the Potomac to the Rio Grande as ten years ago. If the Republican party could have been stricken from existence when the banner of rebellion was unfurled, and when the response of “no coercion” was heard in the North, we would have no nation to-day.

But for the Republican party daring to risk the odium of tax and draft laws our flag could not be kept flying on the field until the long-hoped for victory came. Without the Republican party the Civil Rights bill – the guarantee of equality under the law to the humble and the defenceless, as well as to the strong – would not be to-day upon our national statute book.

With such inspiration from the past, the example of the founders of the Republic, who called the victorious General of the Republic to preside over the land his triumphs had saved from its enemies, I cannot doubt that our labors with be crowned with success.”

Very truly yours, Schuyler Colfax”

(The Republican Party, 1854-1904, Francis Curtis, G.P. Putnam’s Sons, 1904, page 507)

Without resorting to financial trickery, propaganda and suppressed casualty reports Lincoln could not have sustained his destructive invasion of the American South. Unconstitutional paper money and financier Jay Gould provided the money for war — the latter used whatever means necessary to sell war bonds and demonstrated that indeed patriotism is the last refuge of a scoundrel.

Bernhard Thuersam, www.circa1865.org

Hustling Northerners to Save the Union

The Credit Mobilier scandal . . . brought on, or at least hastened, the panic of 1873 and turned the greatest American financier of the era into a bankrupt. This was Jay Cooke. At the time of the crash he was engaged in financing the second transcontinental railroad, the Northern Pacific.

[In the past he] showed fine judgment in his promotion of canals, then of railroads. He did well with loans to the government during the Mexican War. Then the Civil War gave him his big chance and he took it famously. In 1861, the State of Pennsylvania wanted to sell a large bond issue to finance its war effort. No banker but Jay Cooke would touch it. He sold the issue quickly, with a rousing appeal to patriotism. It was the first bond issue ever sold in that manner in the United States.

Noting his success, the federal government asked Cooke for his help. Moving his office to Washington . . . Cooke organized a spectacular country-wide campaign to sell federal war bonds to the public. He engaged brass bands. He hired spread-eagle speakers. He caused hundreds of thousands of flags to be displayed at bond rallies.

His salesmen worked on commission and were not turned loose until they had been thoroughly indoctrinated with the equivalent of pep talks and had learned at least ten ways of making non-buyers look and feel like traitors. Jay Cooke, in short, set the American, or rather the Union, eagle to screaming for money. He disposed of the bond issue of 1861, and of many more that followed. They amounted in four years to nearly three billion dollars.

What Cooke had done was to invent and bring to the management of national finance a wholly new technique – the drive. With little modification it has been used ever since. The boys in blue must be supported by fighting dollars.

From his immense commissions on bond sales and his many other activities, Cooke emerged at war’s end as the greatest banker in the country. “On the day Richmond fell, Cooke marked out the lines of a pretentious country house that was to cost one million dollars [with] an Italian garden facing a wall built to resemble “the ruined castle of some ancient nobleman.” This was the fifty-two room palace named Ogontz. Here he entertained, among others, President Grant, on whom he showered fine cigars and a plentitude of whiskey and wine.

Cooke dazzled Grant as he dazzled most contemporary Americans. He exemplified, said a critic, all of the substantial upper middle-class virtues of a people “newly given to the worship of a sterile money economy.”

One might call him also a vulgarian of money; placed in his own era, being a rich vulgarian merely made him a genuine great man. More than once, editorial writers and speakers coupled Cooke’s name with Lincoln and Grant.”

(The Age of the Moguls, Stewart H. Holbrook, Doubleday & Company, 1953, pp. 51-52)

At the end of the nineteenth century the American landscape was undergoing great change as mechanization transformed the independence and self-reliance of the ordinary farmer. The tractor and combine enabled him to plow, seed and harvest more fields than before, but it came at great cost.

Bernhard Thuersam, www.circa1865.org

Farmer Smith and Modern Farming

“John Smith was a frugal farmer, and raised enough feed – corn, oats, and silage – to supply his work stock and brood mares. He never bought feed and he rarely bought a horse or mule.

John Smith first bought a car, a Ford, to take the place of his saddle horse and buggy. Next he bought a tractor, and then a trailer for use as a truck. He bought a tractor because the International Harvester Company proved to him that horses have to be fed whether they work or not. The agent showed him striking pictures of horses “eating their heads off” on rainy days when there was nothing to do, and he saw pictures of [tractors] in farm magazines.

The farmer was taught to begrudge the feed for his idle horses and mules. Moreover, the tractor and its gang of plows could turn the 130 acres in half or a third or a fourth of the time that the mules could do it. The Country Gentlemen [magazine] published beautiful pictures of tractors at work and wrote simple articles that John Smith, or his boy, could understand.

John Smith finally drove out the tractor, and the demonstrator taught him how to use it. John Smith was now using as much horsepower as before, perhaps more, but he was getting it on quite different terms.

He was buying horsepower in Detroit and Chicago and mortgaging the future to pay for it. The tractor came covered with a thin coat of paint and several coats of protection. It was protected by a series of patents that made it impossible for more than a few competitors to supply him. It was protected by a tariff that made it impossible for England or Germany or Canada to get into his field.

Moreover, the tractor was never known to have a colt tractor, even a “mule.” On top of this the tractor carried a series of profits extending from the steel mills right on up to the gates of John Smith’s farm, and John Smith had to pay for the paint, protection, and profits.

Now, in contrast to the tractor, the mule colt stood in the meadow lot and gazed at the strange contraption in awe and astonishment. The colt represented horsepower just as the tractor did, but the colt cost practically nothing to begin with. Nobody had a patent on him and he carried no tariff. He represented nobody’s capital except John Smith’s and no wages or interest were tied up in his shiny skin.

He would start paying for himself at the age of three, increase in value for six or seven years, and would continue to give good service for twelve or fifteen years and service only a little less valuable after fifteen. He was so perfectly constructed that he would never have to have a spare part, not even a spark plug. He was a self-starter and self-quitter when quitting time came.

Both the tractor and the mule had to have fuel to go on. The mule’s fuel was corn, hay, cane, straw, or what have you on the farm. John Smith raised all these things and never had to go off the farm to get fuel for this hay-burning horsepower. He raised mule fuel with his own labor, or nature gave it to him from the field and the meadow.

Unfortunately, John Smith could not raise feed for the tractor. It had to have gasoline and oil, as well as batteries and parts. All these had to be purchased in the town from the northern corporations. In short, John Smith now buys his horses in Detroit and Chicago; he buys the feed for them from John D. Rockefeller in New York.

In the meantime something else has happened. The mule that cost so little has grown up, but there is no work for him to do. When John Smith offers him for sale, he finds that nobody is willing to pay a fair price for him, perfect as he is. The neighbors too . . . are going to Chicago for mules that deteriorate rather than improve, and to New York for feed which will never be converted into fertilizer.

Though John Smith is still raising feed, he has little use for it. The brood mares have died, the mules have been sold; there is nothing left to eat the corn, cane and grass except a few cows. When John Smith tries to sell his surplus feed, he finds that there are no buyers . . . The neighbors are not using that kind of feed. They prefer the feed that comes out of pumps.

John Smith no longer raises feed. He is now planting the 130-acre farm in cotton or in wheat, thereby wearing out the soil that supports him.

Something fine has gone out of John Smith, something of the spirit of independence and self-sufficiency that was present when the mules were pulling the plow and the colt that had not yet felt the collar was frolicking in the meadow.

In reality, he has become a retainer, and might well don the uniform of his service. He raises wheat and cotton for a world market, unprotected by tariffs or patents, in order that he may buy mechanical mules, feed, shoes, and everything that he needs in a market that has every protection of a beneficent government.”

(Divided We Stand, The Crisis of a Frontierless Democracy, Walter Prescott Webb, Farrar & Rinehart, Inc., pp. 137-140)