Circa1865

An 1845 congressional committee investigating naturalization frauds in New York and Philadelphia found it was common practice on the eve of elections for immigrants, many not yet qualified by residency, to be naturalized in droves by political machines like Tammany Hall. This immigrant influx had created two Americas by the late 1850s: An immigrant-dominated North versus a South still consisting of English and Scots-Irish who originally settled the region. The former knew little of American institutions; the latter revered limited government, self-reliance and independence.

In 1860, the South contained some 233,000 people born under a foreign flag, while the North held nearly 4 million foreign-born inhabitants. While running for president in mid-1860, Lincoln purchased Springfield (Illinois) Zeitung to gather immigrant votes; by 1864, fully 25% of Lincoln’s war machine consisted of Germans.

Bernhard Thuersam, www.Circa1865.org

Immigrant Politics and Recruits Up North

“In 1835, it was reported that more than one-half of the paupers in the almshouses of New York, Philadelphia, Boston and Baltimore were foreign-born, and in later years the proportion was even higher. Crime statistics, too, revealed a disproportionate number of foreign-born offenders; in 1850 there were three times as many foreign-born inmates of the New York State prisons as there were natives.

To many nativists an equally grave and more immediate threat to republican freedom stemmed from the political role of the foreign-born. In places the proportion of foreign-born voters had so increased as to hold the balance of electoral power; this of itself was a source of alarm, for most immigrants remained ignorant of American institutions.

In addition, the electoral violence and voting frauds, which had come to characterize immigrant voting in politics, we believed to be sapping the very foundations of the American political system. There were numerous complaints of native voters being kept from the polls by organized mobs of foreign laborers, of immigrants voting on the very day of their arrival in America, and of hired witnesses and false testimony as the commonplaces of naturalization proceedings.

[Native resentment] of German arrogance gave way to excited warnings against the machinations of a disaffected and turbulent element to whom America had unwisely given asylum. [An example of this were] the demands of Communist Forty-Eighters like Wilhelm Weitling, who advocated complete social revolution and the establishment of an American “republic of the workers.”

In Missouri in the spring of 1861, the bulk of Union forces consisted of German militiamen [who] thwarted secessionist attempts to take the State out of the Union. What led many to enlist was the offer of a bounty greater than an unskilled laborer’s annual earnings. Large numbers, too, joined the army because the trade depression at the beginning of the war, and its consequent unemployment, left them no choice save starvation or military service.

Such cases were common, for example, in New York where Horace Greeley, struck in April 1861 by the high proportion of foreigners among the recruits, wondered whether “the applicants were actuated by the desire of preserving the Union of the States or the union of their own bodies and souls.”

(American Immigration, Maldwyn Allen Jones, University of Chicago Press, 1960, excerpts pp. 152-154; 171-172)

Alongside the North’s notorious bounty system for attracting recruits and substitutes to its armies, was Lincoln’s authorization to count Southern black men toward his State troop quotas. The latter allowed Northern men a way to avoid military service and Northern governors a means to avoid being voted out of office. State agents seeking recruits immediately swarmed into Northern-occupied areas of the South beat others to the new source of manpower with which to subjugate the South. One Northern general who held little regard for black people was Sherman, whose adversaries in the North charged him with “an almost criminal dislike of colored people and with frustrating the Negroes cruelly in their attempts to follow the army from the interior.”

Bernhard Thuersam, www.Circa1865.org

Recruiting Lincoln’s Sable Arm

“The abuse of the freedmen that had always occurred whenever new troops came into the [Sea] island district was vigorously reenacted [when Sherman’s western troops arrived]. Some soldiers cheated the Negroes by selling them horses they did not own, and others behaved “like barbarians, shooting pigs, chickens and destroying other property.”

The brotherhood of the Western army stopped abruptly . . . at the color line. “Sherman and his men, explained Arthur Sumner to a Northern friend, “are impatient of darkies, and annoyed to see them so pampered, petted, and spoiled, as they have been here.”

Sherman was thought “foolish in his political opinions” by a [Northern] teacher who resented his crusty remark that “Massachusetts and South Carolina had brought on the war, and that he should like to see them cut off from the rest of the continent, and hauled out to sea together.”

On January 12, 1864, [Secretary of War Edwin M.] Stanton . . . met twenty Negro leaders at Sherman’s headquarters [in Savanna] and asked their opinion on a dozen problems involving their welfare. They advised Stanton that the State recruiters should be promptly withdrawn from the district, sagely pointing out that Negro soldiers recruited in this system merely served to replace Northern white men who would otherwise be drafted to fill State quotas.

They said they well knew, that their ministers could do a better job of persuading young men to enlist than could mercenary bounty agents.

Coming up to Beaufort on a steamer with Stanton, [General Rufus Saxton] asked most particularly whether the freedmen would be maintained in possession [of property], and the Secretary had most heartily reassured him.

On December 30, 1864, he had written a bitter letter to Stanton, reviewing the long series of frustrations he had endured in his Sea Island work. Over and over he had been the unwitting agent of the erection of false hopes among the freedmen.

In the matter of recruiting he had assured the people that no man would be taken against his will, but he had been undone by General [David] Hunter in the first place, by General Quincy Gillmore in the second place, and at last by General John G. Foster, who in 1864 resumed wholesale recruiting “of every able-bodied [black] male in the department.”

The atrocious impressment of boys of fourteen and responsible men with large dependent families, and the shooting down of Negroes who resisted, were all common occurrences.

The Negroes who were enlisted were promised the same pay as other soldiers. They had received it for a time, “but at length it was reduced, and they received but little more than one-half what was promised.”

(Rehearsal for Reconstruction, the Port Royal Experiment, Willie Lee Rose, Bobbs-Merrill Company, 1964, excerpts pp. 322-329)

Grover Cleveland at age twenty-five had been elected to Buffalo’s Second Ward; at twenty-seven he was appointed assistant district attorney of Erie County (Buffalo) and prepped for a long career in New York machine politics. As Lincoln targeted Democrats in New York with his conscription act of March 1, 1863, Cleveland was swept up in it — but already had a substitute to serve in his stead.

Bernhard Thuersam, www.Circa1865.org

Grover Finds a Substitute

“[Said an editorial in the Buffalo Courier]: “Mr. Cleveland is one of the most promising young members of the bar, is a thoroughly read lawyer, and possesses talent of a high order.”

[Cleveland’s job of district attorney] paid half what he earned in private practice . . . should Grover be conscripted was an unthinkable prospect and unanswerable question – until Abraham Lincoln took up a pen to sign into law the Conscription Act of March 3, 1863.

Its provisions allowed draft eligible men to buy their way out of serving by paying $300 for “commutation,” or by furnishing a substitute. When the conscription procedure began with the drawings of names in May, Grover’s was chosen on the first day.

But he was ready: He had found a substitute in the person of a Great Lakes seaman named George Brinske, also known as Benninsky. Had Grover wished, as assistant district attorney he could have found an almost limitless roster of substitutes among discharged convicts or friendless men accused of a crime who would have gladly chosen army life over imprisonment.

Satisfied with the financial arrangement offered him ($150), Benninsky was sworn into the army at Fort Porter on July 6, 1863. Serving with the Seventy-sixth New York Regiment on the Rappahannock River in Virginia, he injured his back (not in combat) and served as an orderly in a military hospital in Washington, DC, for the remainder of the war.

When another local election loomed in 1865, [Grover] offered himself to Buffalo voters as the Democratic candidate for Erie County district attorney. His declaration has promptly hailed by the [Buffalo] Courier . . . “he is a young man . . . who, by his unaided exertions, has gained a high position at the bar, and whose character is above reproach.”

(An Honest President: the Life and Presidencies of Grover Cleveland, H. Paul Jeffers, HarperCollins, 2000, excerpts pp. 28- 31)

Northern General Peter Osterhaus was born in Prussia, educated at the Berlin Military Academy and served as a Prussian officer, but later found himself on the losing side of the socialist revolutions of 1848. He then immigrated to the US and settled in Missouri where he raised a regiment of bounty-enriched German immigrants in June of 1861 to join Lincoln’s army — described by historian Ella Lonn (Foreigners in the Union Army, 1951) thusly: “The speech of almost every European nation might have been heard in the camps of the Army of the Potomac.” Osterhaus accompanied Sherman on his destructive path through Georgia and the Carolinas.

Bernhard Thuersam, www.Circa1865.org

German Forty-Eighters in Mississippi

“Landed neighbors just across the river from the Davises on the Louisiana side included John Perkins, a member of Congress . . . and Mrs. Sarah Dorsey of Elkton Plantation, who also owned Beauvoir [in Mississippi] and befriended Jefferson Davis in his declining years. Adjoining the farms of these friends stood the old Bowie home, where Jim Bowie of Alamo fame and his brother Resin lived as boys.

The big mansion at “Hurricane” is beyond the memory of living persons. On June 2, 1862, Union soldiers advancing toward Vicksburg landed on Davis Bend at night and burned “Hurricane” to the ground.

[Older brother] Joseph E. Davis complained that General Peter J. Osterhaus ordered the burning and gave the family only thirty minutes’ notice to vacate the house. The red glare from the rocketing flames at the western end of the bend could be seen in Vicksburg, eighteen direct miles away.

The soldiers piled library books on the lawn and lit bonfires. They dumped sets of china and crystal on the grass and gleefully shattered them with muskets. Paintings cherished by the Davises were gathered and slashed with bayonets.

[Brother Joseph E. Davis on] March 1, 1866, wrote to President Andrew Johnson from Vicksburg, Mississippi, making application for the restoration of his property” “I took no part in the war. I did not bear arms. I was not a member of the legislature nor of the convention nor attended any meetings. I contributed nothing, subscribed nothing, [and] made no investments in Confederate bonds or securities.

Under the assurances that those would not be molested who [remained] quietly at home, I remained at my place until almost all of my property was carried off, my cotton burned and an order was received from Gen’l Osterhaus to burn my house, giving me and my family half an hour to get out . . .”

(Brierfield, Plantation Home of Jefferson Davis, Frank Edgar Everett, Jr., University of Mississippi, 1971, excerpts pp. 18-19)

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)

The Lincoln administration utilized both censorship and propaganda in its effort to conceal the immense carnage and early defeats from the Northern public, as well as portray the South as murderers of noble Union soldiers who were defending the Founders’ republic. After Lincoln’s reelection in 1864, the campaign of hatred toward the South intensified to ensure that the South would remain a subject colony and economic wasteland — plus a source of freedmen votes to ensure Republican political hegemony.

It is true that Northern men hated the draft and did not flock to the colors; generous bounties were required to attract recruits and most often these were foreigners. Many posed the question the North was reluctant to ask: “If the cause of the Union was such a noble one, why was there so much violent opposition to the idea of fighting for it.” It was British propaganda that helped bring America into the First World War, despite a president being elected on a pledge of no American boys dying on European battlefields.

Bernhard Thuersam, www.Circa1865.com

Mobilizing the Hate of the People

“There was no richer field for propaganda than the United States of America in the first years of the war. Atrocities, Germany’s sole responsibility, the criminal Kaiser, and all the other fabrications started in Great Britain, were worked up by American liars with great effect.

The Belgian baby with no hands was a special favorite. There was hardly a household in which it was not discussed all over that vast continent, and even so ridiculous a scare as the concrete platforms for German guns was current in California. Villages were burned [by the Germans], women carried off, and various cruelties perpetrated.

After America entered into the war a number of “actual war picture” films (prepared at Hollywood) were released. An immense army of speakers and pamphleteers were employed by the Committee on Public Information, and the country was flooded with literature describing the iniquities of the Hun.

An interesting volume on the technique of propaganda was recently published by [political scientist and communications theorist] Professor [Howard D.] Lasswell, of Chicago, from which the following passage may be quoted:

“So great are the psychological resistances to war in modern nations that every war must appear to be a war of defense against a menacing, murderous aggressor. There must be no ambiguity about whom the public is to hate. The war must . . . be due . . . to the rapacity of the enemy. Guilt and guilelessness must be assessed geographically, and all the guilt must be on the other side of the frontier. If the propagandist is to mobilize the hate of the people, he must see to it that everything is circulated which establishes the sole responsibility of the enemy.”

(Falsehood in Wartime, Propaganda Lies of the First World War, Arthur Ponsonby, E.P. Dutton, 1929, excerpts pp. 180-182)

In this late 1940 address to the Southern Historical Association, historian Frank L. Owsley (1890-1956) spoke of the sectional cause of the Civil War and the North’s reluctance to allow the South to seek political independence.  Prof. Owsley was born in Alabama, taught at Vanderbilt University and was a member of the Southern Agrarians.

Bernhard Thuersam, www.Circa1865.com

The Civil War’s Basic Cause: Sectionalism

“Before attempting to say what were the causes of the American Civil War, first let me say what were not the causes of the war.

Perhaps the most beautiful, the most poetic, the most eloquent statement of what the Civil War was not fought for is the Gettysburg Address. That address will live as long as Americans retain their love for free government and personal liberty; and yet in reassessing the causes of the Civil War, the address whose essence is was that the war was being fought so “that government of the people, by the people, and for the people shall not perish from the earth” is irrelevant.

Indeed, this masterpiece of eloquence has little if any value as a statement of the basic principles underlying the war.

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 the 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 unrealistic and downright silly.

If the destruction of democratic government by the South and its preservation by the North were not the causes of the Civil War, what then were the causes? The surface answer to this question is that in 1861, the Southern people desired and attempted to establish their independence and thereby to disrupt the old Union; and that the North took up arms to prevent the South from establishing this independence and to preserve the Union.

This [Southern] state of mind may be summed up thus: by the Spring of 1861, the Southern people felt it both abhorrent and dangerous to continue to live under the same government with the people of the North. So profound was this feeling among the bulk of the Southern population that they were prepared to fight a long and devastating war to accomplish a separation.

On the other hand, the North was willing to fight a war to retain their reluctant fellow citizens under the same government with themselves.

The cause of that state of mind which we may well call war psychosis lay in the sectional character of the United States. In other words, the Civil War had one basic cause: sectionalism.

Our national state was built, not upon the foundations of a homogenous land and people, but upon geographic sections inhabited severally by provincial, self-conscious, self-righteous, aggressive and ambitious populations of varying origins and diverse social and economic systems; and the passage of time and the cumulative effects of history have accentuated these sectional patterns.”

(The Fundamental Cause of the Civil War, Frank L. Owsley, excerpt, Address to Southern Historical Association, November 8, 1940)

The resistance to Lincoln’s conscription law became violent on July 13, 1863 as mobs fought New York City police and soldiers in the streets. With that State having predominantly Democratic voters, Lincoln seemed to levy a higher draft quota there and poor Irish immigrants would bear the brunt of forced military service — and feared freed blacks flooding North and taking all laboring jobs held by Irish. The author below relates that “Negroes had been hunted down all day, as though they were so many wild beasts, and one, after dark, was caught, and after being severely beaten and hanged to a tree, left suspended there until [police took] the body down. Many [blacks] had sought refuge in police stations and elsewhere, and all were filled with terror.”

Bernhard Thuersam, www.Circa1865.com

New Yorker’s Resist Conscription

“The ostensible cause of the riots of 1863 was hostility to the draft, because it was a tyrannical, despotic and unjust measure – an act which has distinguished tyrants the world over, and should never be tolerated by a free people. Open hostility to oppression was more than once hinted in a portion of the press – as not only a right, but a duty.

Even the London Times said: “It would have been strange, indeed, if the American people had submitted to a measure which is a distinctive mark of the most despotic governments of the Continent.”

It might as well be said, that because settling national difficulties by an appeal to arms has always been a distinctive feature of despotic governments, therefore the American people should refuse to sustain the government by declaring or prosecuting any war; or that because it has always been a distinctive feature of despotic governments to have naval and military schools, to train men to the art of war, therefore the American people should not submit to either.

[If troops] enough can be raised on a reasonable bounty, it is more expedient to do so; but the moment the bounty becomes so exorbitant as to tempt the cupidity of those in whom neither patriotism nor sense of duty have any power, volunteering becomes an evil. We found it so in our recent war.

The bounty was a little fortune to a certain class, the benefit of which they had no idea of losing by being shot, and hence they deserted or shammed sickness, so that scarce half the men ever got to the front, while those who did being influenced by no higher motive than cupidity, became worthless soldiers.

If a well-known name, [or] that of a man of wealth, was among the number [conscripted], it only increased the exasperation, for the law exempted every one drawn who would pay three hundred dollars towards a substitute. This was taking practically the whole number of soldiers called for out of the laboring classes.

A great proportion of these being Irish, it naturally became an Irish question, and eventually an Irish riot. It was in their eyes the game of hated England over again – oppression of Irishmen.”

(The Great Riots of New York, 1712 to 1873; Joel Tyler Headley, editor, Dover Publications, 1971, excerpts, pp. 137; 139; 149. Original published by E.B. Treat in 1873)

There was only one “flush of patriotic enthusiasm” in the North after the war began, and Gen. Halleck advised Lincoln in early 1862 that enlistments had virtually ceased and few new volunteers were to be had. A new system of procuring troops was needed, and conscription was contemplated. States, cities and counties feared losing local men to the threatened draft, and therefore raised exorbitant amounts to buy substitutes and anyone who would take the money to fill Lincoln’s troop quotas. As the war wore on, higher bounties had to be offered to attract men.

Ohio’s Governor William Dennison reminded his constituents in mid-May 1861 that the federal government “offers a bounty of one hundred dollars to all who may enlist, payable at the close of service, or to the soldier’s family, if he should not survive.” Dennison was a Whig and Republican like Lincoln, with the latter rewarding him with the cabinet post of Postmaster General.

Bernhard Thuersam, www.Circa1865.com

Ohio Bounties Stimulate Enlistments

“An act of May 1, 1861, exempted from execution the property of any soldier in the militia of Ohio mustered into the service of the United States during the time he was in service, and fro two months thereafter. In February, 1862, the general assembly sought to protect citizen-soldiers charged with criminal offenses by providing that judges should postpone their trials until they were discharged. Still later, in March 1864, certain relief was given to debtors in the armed services who might have judgement rendered against them without defense . . .

After the first flush of patriotic enthusiasm had passed, one of the strong inducements to enlistment was a financial one – a bounty, and, at a later date, the advance of the first month’s pay. During the Civil War, bounties came from three sources – the federal government, local government units, and private subscription. (In Ohio there was no bounty offered directly from State funds.)

Indeed, as the provost marshal wrote, the federal bounty paled into “comparative insignificance” when compared to “the exorbitant bounties paid in advance by local authorities.” These, he believed, were the most mischievous in encouraging desertion, bounty-jumping and other evils connected with the system.

So great was the stigma of the draft that local authorities were highly competitive in the amounts offered to volunteers. Furthermore, they paid all the sum in advance. The primary objective of these payments, as [Provost Marshal] General [James B.] Fry put it, came to be “to obtain men to fill quotas.”

Localities began by offering moderate bounties. In 1862 the average local bounty in Ohio was estimated at $25; in 1863 in advanced to $100; in 1864 it bounded to $400; and in 1865 the average bounty was $500, although in some localities it was as high as $800.

The Hamilton County Board of Commissioners levied a tax of two mills in 1863 to take care of local bounty payments. The next year (1864), however, the city of Cincinnati began to borrow in order to offer city bounty payments, and during the year 1,811 volunteers were paid bounties of $100 each.

After the war the adjutant general of Ohio estimated that $54,457,575 had been paid in local bounties throughout the State, of which amount cities and counties paid about $14,000,000 and private subscribers, $40,457,575.”

(Relief for Soldiers’ Families in Ohio During the Civil War, Joseph E. Holliday; Ohio History, July 1962, Volume 71, Number 2, James H. Rodabaugh, editor, excerpts, pp. 98-100)

It did not take long after Fort Sumter for Northern war expenditures to reach staggering proportions. James Randall in his “Civil War and Reconstruction” (1937, DC Heath) wrote: “With the treasury nearly empty, financial markets shaken, foreign bankers unsympathetic, taxation inadequate, and loans unmarketable except at a discount, the door of escape by way of paper money seemed most tempting.” Lincoln resorted to the printing press to create money.

Bernhard Thuersam, www.Circa1865.com

Lincoln’s Inflationary Finances

“The classic study of Union inflation was Wesley Clair Mitchell century-old “History of the Greenbacks.” Initially the war was to be financed with the use of government bonds, tax revenues would be used to pay the normal expenditures of government, and the gold standard would be retained. However, this system quickly collapsed in late 1861 and the first of three legal tender acts was passed in February 1862 with a total of $450 million in greenbacks authorized for issue.

When an economy has two types of money, such as gold and paper, and they are both defined in the same units, such as dollars, Gresham’s Law states that bad money will drive good money out of circulation. And in accordance with Gresham’s Law, greenback dollars quickly displaced gold dollars as the circulating medium of exchange.

The value of greenbacks quickly depreciated in terms of gold and fell to a low point of only 35 cents worth of gold on July 11, 1864. Amazingly, the Union currency had depreciated as much in three short years as the dollar has in the thirty years since the United States went off the gold standard. The prices of goods appreciated in terms of greenbacks from an index value of 100 in 1860 to a maximum of 216.8 in 1865.

Citizens tended to blame higher prices on business, speculators, and foreigners. Some government officials believed that speculators in the gold market were somehow causing the value of greenbacks to fall, but the real culprit for inflation was the government itself.

In addition to an ever-increasing supply of greenbacks, Mitchell showed that the value of greenbacks in terms of gold would change on the basis of expectations that in turn were based on peoples’ estimated probability that the greenbacks would be redeemed for gold after the war. Battlefield losses were associated with declines in value while victories meant higher values for the greenback.

Higher prices also meant that the Union government would have to issue more greenbacks in order to purchase war supplies and pay its soldiers [and pay enlistment bounties]. Because the Union government would eventually have to pay its war debts and redeem the greenbacks in gold, Mitchell . . . calculated that greenbacks had increased the real cost of the war to the government itself by $528 million. Of course, the politicians who borrowed and spent the money during the war were not necessarily the same ones who had to pay off the debt and redeem the greenbacks after the war.

Mitchell also found that the switch from gold to paper . . . [created] an illusory increase in property values, an increase in extravagance and the purchase of luxury goods, a crippling of economic efficiency, and a decrease in real wages for farmers, laborers, professionals, teachers and soldiers. As expected, the Union’s inflationary finances created an illusion of general prosperity that greatly upset the ability of entrepreneurs, workers, consumers, and bureaucrats to make accurate economic calculations.”

(Tariffs, Blockades and Inflation: The Economics of the Civil War; Mark Thornton and Robert Ekelund, Jr., Scholarly Resources Books, excerpts, pp. 68-69)