Circa1865

It is said that England in 1861 ran twice as many spindles as all other countries combined, with Lancashire at the center. The London Times editorial of September 19, 1861, stated that one-fifth of the entire British population was held to be dependent, directly or indirectly, upon the prosperity of Southern cotton, which accounted for 80 percent of the total English importation of raw cotton. Additional cotton was sent north to the busy cotton mills of Lowell, Massachusetts.

And it cannot be forgotten that it was Massachusetts tinkerer Eli Whitney who brought forth the cotton gin. This invention replaced the slow method of pulling seeds by hand, increased cotton crop yield and helped perpetuate African slavery in America.

Cotton for the North and England

“For ten years past whenever Southern threats of secession had been indulged in, the writers and politicians of that section had expanded upon cotton as the one great wealth-producing industry of America and as the one produce which would compel European acquiescence in American policy, whether of the union, before 1860, or if the South, if she should decide upon independence.”

A writer in DeBow’s Review declared “the South annually throws upon the world for the poor & the naked, [and] we are doing more to advance civilization . . . than all the canting philanthropists of New England & Old England will do in centuries. Slavery is the backbone of the Northern commercial as it is of the British manufacturing system . . .”

Before the Civil War was underway Charles Greville wrote to Clarendon: “Any war will be almost sure to interfere with [the South’s) cotton crops, and this is really what affects us and what we care about. With all our virulent abuse of slavery and slave-owners, and our continual self-laudation on that subject, we are just as anxious for, and as much interested in, the prosperity of the slavery interest in the Southern States, as the Caribbean, as the Carolinian and Georgian planters themselves, and all Lancashire would deplore a successful insurrection of the slaves [by northern abolitionists], if such a thing were possible.”

(Great Britain and the American Civil War. Volume II. Ephraim Douglass Adams. Alpha Editions, 2018 (original 1924), pp. 300-301)

Author Roger Lowenstein writes that on Christmas Eve, 1825, “Thomas Jefferson let out an anguished cry. The government of the country he had helped to found, half a century earlier, was causing him great distress. It was assuming vast powers, specifically the right to construct canals and roads, and to effect other improvements. Jefferson thought of the federal government in the most restrictive terms: as a “compact” or a “confederated fabric” – that is, a loose affiliation of practically sovereign States.”

Thomas Jefferson’s “Rupture”

“He was roused at the age of eighty-two to issue a “Solemn Declaration and Protest” against what he termed the “usurpation” of power by the federal branch. Jefferson was so agitated that he declared that the “rupture” of the United States would be, although a calamity, not the greatest calamity. Even worse, reckoned the sage of Monticello, would be “submission to a government of unlimited powers.”

Though Federalists led by Alexander Hamilton had sought to establish a strong central government, Jeffersonians adamantly objected. No fewer than six of President Jefferson’s successors vetoed or thwarted federal legislation to build roads and canals, improve harbors and riverways, maintain a national bank, [and] fund education . . .”

Had Jefferson survived until 1860, the federal government of that day would not have displeased him. Its main vocation was operating the postal service and collecting customs duties at ports, [and] its army consisted of merely sixteen thousand troops scattered mostly among a series of isolated forts west of the Mississippi. The federal payroll was modest . . . the civilian bureaucracy in Washington consisted of a mere two thousand employees.

The modest federal purse was supported by tariff duties and a smattering of land sales. Federal taxes (an unpleasant reminder of the English Parliament) were reflexively scorned. Then came the “rupture.”

The Republicans – [Lincoln elected in November 1860] – vastly enlarged the federal government . . . [and] accomplished a revolution that has been largely overlooked.”

(Ways and Means: Lincoln and His Cabinet and the Financing of the Civil War. Roger Lowenstein, Penguin Books, 2022. pp. 1-2)

Lincoln, in his first inaugural address, promised no interference with the South’s labor system and admitted that a president lacked the authority to do so. But he did threaten to invade any State that failed to collect federal tariff revenues – despite the US Constitution’s Article III, Section 3, declaring treason to be waging war against one of “Them”, the States, or adhering to their enemy, giving them aid and comfort.

Lincoln’s Tariff War

“Once the Republicans were confident that Lincoln would win the 1860 election, and especially once the Southern Democrats began leaving the U.S. Congress, they did what they had been dreaming of doing for decades: They went on a protectionist frenzy that lasted for decades after the war.

The Morrill Tariff was passed by the House of Representatives in May 1860 and by the Senate in March 1861, just prior to Lincoln’s inauguration. Thus, the apparatus of protectionism was initiated before Fort Sumter and before the war. The Morrill Tariff was not passed to finance the war; it was passed because the old-line Whigs, who were now Republicans [including Lincoln], finally had the power to do it.

Even though it was passed before Lincoln officially took office, it is important to note that, as the Republicans’ presidential candidate, he was the leader of the party and, as such, most likely had a great deal to do with the political maneuvering on behalf of the tariff.

[In his classic 1931 book, “The Tariff History of the United States”] Frank Taussig explains that “in the next regular [congressional] session, in December 1861, a still further increase of [tariff] duties was made. From that time until 1865, no session, indeed, hardly a month of any session, passed in which some increase in of duties on imports were not made.” By 1862, the average tariff rate had crept up to 47.06 percent which “established protective duties [for Northern industries] more extreme than had been ventured on in any previous tariff act in our country’s history.”

The Republicans openly admitted that the purpose of their protectionist policy was not necessarily to raise money to finance the war but to pay off Northern manufacturers for their political support. The manufacturers were being taxed explicitly (through excise taxes) to help finance the war, and the tariff was a way to offset those losses.  Congress enacted and Lincoln signed into law tariff legislation “whose chief effect was to bring money into the pockets of private individuals.”

Long after the war, Taussig concluded, “almost every increase in duties demanded by domestic producers was readily made” and “great forces were made by changes in legislation urged and brought about by those who were benefited by them.”

(Abraham Lincon and the Triumph of Mercantilism, Thomas J. DiLorenzo. Reassessing the Presidency. John V. Denson, ed., Mises Institute Press, 2001, pp. 220-221)

Famed orator and debater Robert Y. Hayne of South Carolina served as South Carolina Senator 1823-1832, governor of that State 1832-1834, and mayor of Charleston 1836-1837.  He famously debated Daniel Webster of Massachusetts in Congress in early 1830 over concerns that the federation’s government was attracting too much revenue, accumulating too much debt and trending toward consolidation. Hayne further reminded Webster of New England’s infamous trading with the enemy and threats of secession during the War of 1812.

South Carolina’s Devotion to the Union

“If there be one State in this Union (and I say it not in a boastful spirit) that may challenge comparison with any other for a uniform, zealous, ardent and uncalculating devotion to the Union, that State is South Carolina.

Sir, from the very commencement of the Revolution, up to this hour, there is no sacrifice, however great, she has not cheerfully made; no service she has ever hesitated to perform.”

“What sir, was the conduct of the South during the Revolution? Sir, I honor New England for her conduct in the glorious struggle . . . [but] I think equal honor is due the South. Favorites of the mother country, possessed of neither ships nor seamen to create commercial rivalship, they might have found in their situation a guarantee that their trade would be forever fostered and protected by Great Britain. But trampling on all considerations, either of interest or of safety, [the South] rushed into the conflict, and, fighting for principle, periled all in the sacred cause of freedom. Never was there exhibited, in the history of the world, higher examples of noble daring, dreadful suffering and heroic endurance, than by the whigs of Carolina, during that Revolution.”

And the War of 1812, called in derision by New England, said Hayne, “the southern war,” what was the conduct of South Carolina? The war was for the protection of northern shipping and New England seamen.

‘What interest had the South in that contest? If they sat down coldly to calculate the value of their own interests involved in it, they would have found they had everything to lose and nothing to gain. But sir, with that generous devotion to country so characteristic of the South, they only asked if the rights of any portion of their fellow-citizens had been invaded; and when told that northern ships and New England seamen had been arrested on the common highway of nations, they felt that the honor of the country was assailed . . . they resolved to seek, in open war, for a redress of those injuries which it did not become freemen to endure.’

The conduct of Massachusetts, declared Hayne, was in that war so unpatriotic and disgraceful, her acts in opposing the war so shameless, that “her own legislature, but a few years ago, actually blotted them out from the records as a stain upon the honor of the country.”

(The True Daniel Webster. Sydney George Fisher. J.B. Lippincott Company. 1911, pp. 254-255)

In the following paper historian Frank L. Owsley refutes the claim that the North fought the war to preserve democratic government in America. He asserted that on the surface the South sought to establish its independence while the North fought to deny this desire. Owsley wrote that by early 1861 the Southern people “felt it both abhorrent and dangerous to continue to live under the same government with the people of the North. And so profound was this feeling among the bulk of the Southern population that they were prepared to fight a long and devastation war to accomplish a separation. On the other hand, the North was willing to fight a war to retain their fellow citizens under the same government with themselves.”

The Timeworn Stereotype of the South

“The Civil War was not a struggle on the part of the South to destroy free government and personal liberty, nor on the part of the North to preserve them.

Looked at from the present perspective of the worldwide attempt of totalitarians to erase free governments and nations living under such governments from the face of the earth, the timeworn stereotype that the South was attempting the destruction of free government and the North was fighting to preserve it, seems very unrealistic and downright silly.

Indeed, both Northern and Southern people in 1861 were alike profoundly attached to the principles of free government which is substantiated by period newspapers, diaries, letters and speeches give irrefutable evidence in support of this assertion. Their ideology was democratic and identical.

By 1860 the northeastern section of the United States had already assumed its modern outlines of a capitalist-industrial society where the means of production were owned by a relatively few. That is to say that New England and the middle States were fast becoming in essence a plutocracy with the lower classes dependent upon those who owned the tools of production.

Turning to the South, which was primarily agricultural, we find the situation completely contradictory to what has usually been assumed. The so-called slave-oligarchy of the South owned scarcely any of the land outside the black belt and only about 25 percent of the land inside the black belt. Actually, the basic means of production in the black belt and in the South as a whole was well-distributed among all classes of the population. The overwhelming majority of Southern families in 1860 owned their farms and livestock; about 90 percent of the slaveholders and about 70 percent of the non-slaveholders owned the land on which they farmed.

And it is important to note that the bulk of slaveholders were small farmers and not oligarchs – the majority of whom owned from one to four slaves and less than three hundred acres of land.

Thus, unlike the industrial population of the East, the overwhelming majority of white families in the South, owned the means of production. In other words, the average Southerner like the average Westerner possessed economic independence and held on strongly to its democratic ideology and sound economic foundation of a free government.”

(The Fundamental Cause of the Civil War, Frank L. Owsley. Journal of Southern History, Vol. 7, No. 1, February 1941. pp. 5-6)

If continued black labor in the South was essential to the economic survival of the region and the ultimate reason for seeking independence, it was equally essential that the economic survival of Northern financial, textile, and manufacturing industry interests. It was not unexpected that after the Confederate States of America was formed in early February 1861 and enacted a modest 10% tariff which would have decimated northern ports, that those northern interests urged war against the South. It was not about slavery.

The following is excerpted from Mark R. Winchell’s posthumous “Confessions of a Copperhead” recently released by Shotwell Publishing. See www.shotwellpublishing.org.

It Was Not About Slavery

“If the North was fighting for an imperial vision of American hegemony rather than for the abolition of slavery, what motivated the South? The statement of South Carolina’s anti-flag scholars quotes several Confederate officials, who declared they were fighting to preserve slavery.

It would perhaps be more accurate to say that the Confederacy was formed to assure the economic survival of the American South. (The revolutionist’s declaration of independence from England was motivated by similar economic considerations.)  In 1861, African labor seemed essential to that survival [just as New England’s poverty-wage slavery held mill workers to their employment.]

Of even greater concern, however, was the agricultural tariff passed by the US Congress on behalf of Northern industrial interests. This tariff made it difficult for Southerners to sell cotton and other crops in European markets. An independent South, free of the tariff, would have prospered among the community of nations. If Lincoln was willing to assure the perpetuation of slavery, this former corporation lawyer was not willing to ease the tariff.”

(Confessions of a Copperhead, Culture and Politics in the Modern South, Mark R. Winchell, Shotwell Publishing, 2022, pg. 183)

Antebellum North Carolina was home to an aristocracy of industrious free-black merchants, craftsmen and farmers, such as barber John Caruthers, “Barber Jack” Stanly of New Bern.  Stanly invested his profits into plantations and town property, making him one of Craven County’s most prosperous citizens with over $40,000 in personal wealth. Free-black brick mason Donom Mumford of the same community owned ten slaves.  Also, Virginia-born, free-black Thomas Day of Milton, North Carolina, owned fourteen slaves and was an acclaimed master cabinetmaker in the 1850’s with an extensive clientele.  See: The Free Negro in North Carolina, John Hope Franklin, UNC Press, 1943.

An Aristocracy of Color

“The diary which William Tiler Johnson kept from 1835 to his death in 1851 reveals the remarkable life of this exceptional free Negro in a Southern community.

In the 1830s William made profits of $15 to $20 a day from his barber shop and eventually accumulated an estate worth $25,000. He invested capital in two stores which he rented out, made loans to white residents and owned a farm, which he named “Hardscrabble.”

To work his farm William owned fifteen slaves and employed a white overseer to direct their daily work. A gun owner, he hunted regularly, enjoyed the theater where he sat in the colored gallery among friends, attended horse races, and subscribed to five or six newspapers. He took a keen interest in city affairs, politics, criminal court, militia musters as well as fireman’s parades.

Maintaining terms of friendship with several of his barber patrons, William respected the community standards of the day against dining or drinking with white people. He belonged to the aristocracy of the free people of color, avoiding “darky dances and parties.”

(The Growth of Southern Civilization: 1790-1860, Clement Eaton, Harper & Row, 1961, pg. 92-93)

After the loss of her American colonies and intense colonial economic competition with France, the British government became abolition-minded not out of pity for those they had purchased from African tribes to labor in America and the West Indies, but to destroy the successful French colony of San Domingo – as well as the American South’s labor system from which Yankee shipping interests were earning vast fortunes.

This was not lost on John C. Calhoun, who in mid-August 1844 wrote American Minister to France William R. King that “It is too late in the day to contend that humanity or philanthropy is the great object of the policy of England in attempting to abolish slavery on this continent. [In abolishing slavery in her colonies], She acted on the principle that tropical products can be produced cheaper by free African labor and East India labor, than by slave labor.”

Calhoun contended that England “calculated to combine philanthropy with profit and power, as is not unusual with fanaticism,” with the experiment turning out to be a costly one. And in order to regain her superiority, England must destroy her economic competition through emancipation.

Britain, France and Abolition

“The slave-trade and slavery were the economic basis of the French Revolution. “Sad irony of human history,” comments Jaures, “The fortunes created at Bordeaux, at Nantes, by the slave trade, gave to the bourgeoisie that pride which needed liberty and contributed to human emancipation.”

Nantes was the center of the slave-trade. As early as 1666, 108 ships went to the coast of Guinea and took on board 37,430 slaves, a total value of more than 37 millions, giving the Nantes bourgeoisie 15 to 20 percent on their money. In 1700 Nantes was sending 50 ships a year to the West Indies with Irish salt beef, linen for the household and for clothing the slaves, and machinery for the sugar-mills.  Nearly all the industries which developed in France during the eighteenth century had their origin in goods or commodities destined either for the coast of Guinea or for America. The capital from the slave-trade fertilized them; though the bourgeoisie traded in other things than slaves, upon the success or failure of the traffic everything else depended.

The British bourgeois, the most successful of slave-traders, sold thousands of smuggled slaves every year to the French colonists and particularly to San Domingo. But even while they sold the slaves to San Domingo, the British were watching the progress of this colony with alarm and with envy. After the independence of America in 1783, this amazing French colony suddenly made such a leap as almost to double its [sugar] production between 1783 and 1789.

The British bourgeoisie investigated the new situation in the West Indies [and] prepared a bombshell for its rivals. Without slaves San Domingo was doomed. The British colonies had enough slaves for all the trade they were ever likely to do. With tears rolling down their cheeks for the poor suffering blacks, those British bourgeoisie who had no West Indian interests set up a great howl for the abolition of the slave trade.”

(The Black Jacobins: Toussaint L’Overture and the San Domingo Revolution, Vantage Books, 1963, excerpts pp. 47-48; 50-51)

The prewar national dominance of the North eventually gave rise to those who thought that economic and political measures were not sufficient to put the South on a par with the North. They saw that the only way the South could rid itself of subservience to the North was to leave the Union, and do so with the Founders’ Constitution.  The South’s attempts to reduce tariffs had been increased in 1842, and in 1846 with the help of a Southern president and secretary of the treasury, forced through Congress the Walker Tariff which was so low as to be practically revenue only.  Additionally, President John Tyler’s vetoes of a national bank were upheld by Southern votes in Congress.

Northern commercial interests were determined to reclaim their government subsidies and establish national banking, with Lincoln and his new party a convenient vehicle to permanent national dominance.

Paying Tribute to the North

“There were other methods by which the profits from the cotton crop found their way into Northern pockets. Since two-thirds of the cotton crop went to England, the freight charges on its transportation across the sea amounted to a large sum.  Although the river boats of the South were generally Southern-owned and Southern- built, the South never engaged in the building or operating of ocean-going ships, principally because capital could more profitably employed in agriculture.

Most of the cotton sold was carried on coastwise ships to New York, and the great part transshipped from that place to England. All the coastwise ships and most of the ocean-going shipping was Northern-owned and consequently the freight charges went into Northern pockets. In 1843 this amounted to nearly a million dollars. In addition the insurance costs while the cotton was in transit were generally paid to Northern firms.

Not only did the cotton growers pay “tribute” to the North through their exports, but through their imports as well. The imports to the South came through Northern ports; the exports of the South amounted to two-thirds the total of the United States but her direct imports were less than one-tenth. The freight charges to New York and Boston, the tariff duties, and the cost of transportation on coastwise vessels to the South all added to the cost of merchandise.

In the hard times of the forties, Southern economists were prone to find the explanation for their distress in the “tribute” paid to the North. They came to believe that the economic progress of the North depended on this “tribute,” and epitomized their opinion in the phrase “Southern wealth and Northern profits.”

By the phrase “operation of the federal government” the South meant bounties to New England fisheries, internal improvements in the North such as harbors, roads, canals, and public buildings, tariff duties, and deposits of government funds.”

(The Old South: The Geographic, Economic, Social, Political and Cultural Expansion, Institutions and Nationalism of the Antebellum South, R.S. Cotterill, Arthur H. Clark Company, 1939, excerpts pp. 192-199)

“England had discouraged manufacturing in her colonies that she might have a larger market for her manufactures. Immediately upon the declaration of our independence we began to manufacture what we needed, and for the first quarter century after our independence the South took the lead of the North in commerce and manufactures as well as agriculture. We shipped our produce and bought goods in exchange in the open markets of the world. The ports of Norfolk, Wilmington, Charleston and Savannah had a direct trade with Europe.

In 1799, according to assessment for direct taxes, the North and the South had almost exactly the same amount of property, viz., $400,000,000 in value each. From 1791 to 1802 inclusive the exports from the North were $129,205,000. In the same period the five Southern States exported $256,708,300.

From 1791 to 1813 the five Eastern States exported, including an immense amount of Southern productions, only about $299,000,000. The Southern States for the period, including New Orleans, exported $509,000,000. The commercial prosperity was wholly on the side of the South.

Why then did the South lose its supremacy in commerce and navigation? [Thomas Hart] Benton in his “Thirty Years’ View” said the extinction of the commercial supremacy of the South was and is charged to Federal legislation by which the producing and self-sustaining section was made subject to the non-producing or dependent section.

Some of the chief legislation of the Government against which he inveighed was the policy of the protective tariff and internal improvements and the immense sums levied on the products of one section of the country to be disbursed in tremendous expenditures in the other, making the South tributary to the North and a supplicant for a small part of the fruits of its own labor.

Benton in a speech in Congress said: “Under this legislation the exports of the South have been made the basis of the Federal revenues. Virginia, the two Carolinas and Georgia may be said to defray three-fourths of the annual expense of supporting the Federal Government; and of this great sum annually furnished by them, nothing, or next to nothing, is returned to them in the shape of government expenditures.”

(Annual Agricultural Resources and Opportunities of the South, J. Bryan Grimes, Farmers’ National Congress speech, 1901, pp. 4-5)