Circa1865

FDR’s Secretary of Labor, Francis Perkins, belief that more Southerners wearing shoes would spark a consumer tsunami, is on par with New England’s early wartime belief that much good would come from giving former slaves land to cultivate on occupied Hilton Head and the Sea Islands. The logic was that the new-found wealth of the freedmen would be spent on Yankee notions and manufactured goods, and Northern industry would benefit.

Bernhard Thuersam, www.Circa1865.com

Veritable Social Revolution in the South

“Some years ago Secretary of Labor Francis Perkins raised the temperature of many Southerners to fever height by suggesting that if the people of that section could be persuaded to wear shoes a veritable “social revolution” would result. The mass-production system of the United States, the secretary told a welfare council in May, 1933, depends upon purchasing power, the proper development of which would lead to prosperity beyond anything we “have ever dared to dream of.”

If the wages of the millworkers of the South could be raised to such a level that they could afford shoes, a great demand for footwear would result. Indeed, said the secretary, when it is realized that “the whole South is an untapped market for shoes” it becomes clear that great “social benefits” and “social good” would inevitably come from the development of our “mass-production system” to meet this latent consuming power.

Southern editors and speakers indignantly denied the canard that Southerners bought no shoes and retorted that such comments were only what might have been expected from a woman, especially one who knew nothing about the South.

It was even suggested that should all the inhabitants of the South suddenly wake to wearing shoes the resultant wear and tear on streets, sidewalks, and hotel carpets might cause grave financial loss to the area.

That was in 1933 . . . [and it was maintained that] Markets can only exist where there is demand; demand comes close upon the heels of knowledge. Knowledge, or education in the ways of the West, has therefore been considered essential if “backward” peoples are to be induced to purchase western goods. [Henry M.] Stanley, the African explorer, in an address before the Manchester Chamber of Commerce, published in 1884 [asserted] that if Christian missionaries should clothe naked Negroes of the Congo, even in one dress for use on the Sabbath, “320,000,000 yards of Manchester cotton cloth” would be required . . . Should they become sufficiently educated in the European moral code to feel the necessity for a change of clothing every day, cloth to the value of [26 million pounds] a year would be necessary.

When the natives have been educated they would abandon their idleness and sloth, [John Williams, missionary to Tahiti said in 1817], and become industrious workers. Then, he asserted, they will apply to our merchants for goods . . . “

[When FDR called for a New Deal in the South] He certainly must have been aware of the implications of the thesis that the poorly housed, undernourished, and ill-clad Southerner must be given greatly increased purchasing power to enable him to better his economic condition, thus strengthening the demand for manufacture products and consequently improving the economy of the nation as a whole.

It is also certain that the concern which Secretary Perkins felt for the shoeless Southerner was not without precedent. When the armies of Grant and Sherman liberated the Southern Negro, the economic implications were not lost on the people of the victorious section. Following in the wake of the Union armies a host of teachers and missionaries flocked to the South, determined to Christianize and educate the freed Negro . . . with a decidedly abolitionist tinge, to be sure.

[These] people, their robes of self-righteousness wrapped firmly around them . . . carried with them the New England school, complete with curriculum, texts and method, but they also took with them the attitudes and beliefs of the social reformer and, specifically, the militant abolitionist. Politically, the teachers and missionaries became the tools of the [Republican] Radicals in their program of reconstruction . . .

Sensing in the alphabet and the book the key to the white man’s position of dominance, the open-sesame which would unlock the magic door of equality and wealth, the Negro, like the Polynesian, flocked to the church and the school. As one observer wrote, the “spelling book and primer” seemed to them Alladin’s [sic] lamp, which will command over all the riches and glory of the world. In brief, they believed that education was “the white man’s fetish,” which would guarantee wealth, power, and social position.

Some of the teachers [and missionaries] understood the inevitable result of the extension of freedom, Christianity, and education to the Negro – the development of a vast new market for northern goods, which would result in great profits to northern mills.”

(Northern Interest in the Shoeless Southerner, Henry L. Swint; Journal of Southern History, Volume XVI, Number 4, November 1950, excerpts, pp. 457-462)

Senator J. William Fulbright of Arkansas advised his fellow congressmen from the North as to why the South lagged behind in economic development and education, and the reason for this. Fulbright was a signatory of the Southern Manifesto of March 12, 1956 that denounced what was viewed as unconstitutional actions of an activist and legislation-enacting Supreme Court, and all advised legal means of resistance.

Bernhard Thuersam, www.Circa1865.com

Senator Fulbright on Southern Poverty

“From 1946 when the Senate first dealt with Harry Truman’s proposed Fair Employment Practices Commission, (FEPC) and on through a series of filibusters and bitter civil rights contests, Fulbright has been prominent among the Southern bloc. He has been a leader in debate and strategy; he has spoken out as strongly and frequently as any other Southerner.

More than most, he has addressed himself to the South’s unique problems — poverty, ignorance, disease, lack of economic opportunities. He has tried to place these problems in historical perspective, and in that sense can he himself best be understood.

The historical facts of slavery, the Civil War, Reconstruction and its bitter aftermath, crippled the South. The South WAS treated like a conquered territory; it WAS exploited; it DID become ever more insulated and removed from the mainstream of American life. Its fears, frustrations and antagonisms are without parallel in the American experience.

In common with other Southern politicians, Fulbright has been frustrated in attempting to effect change. With his own business background and intimate knowledge of financial conditions in Arkansas, he particularly has resented the domination of outside economic interests — Northern economic interests.

Once, when opposing the routine appointment of a Philadelphia banker to the Federal Reserve Board, he gave a revealing glimpse into his own attitudes:

“The people of the North are extremely solicitous of our welfare and progress,” he said. “They assure us that if we furnish better schools and abolish poll taxes and segregation, strife will cease and happiness [will] reign. They are critical of our relative poverty, our industrial and social backwardness, and they are generous in their advice about our conduct.

Their condescension in these matters is not appreciated . . . because these people . . . have for more than a century done everything they could to retard the economic development of the South.

It is no secret that the South was considered like a conquered territory after 1865. Since that time, the tariff policy and freight rate structure were designed by the North to prevent industrial development in the South; to keep that area in the status of a raw material producing colony. Above and beyond these direct restrictions, the most insidious of all, the most difficult to put your finger on, is the all-pervading influence of the great financial institutions and industrial monopolies.

These influences are so subtle and so powerful that they have in many instances been able to dominate the political and economic life of the South and West from within those States as well as from Washington.”

From his first moment in Congress . . . [Fulbright] has fought for passage of a federal aid to education bill . . . [as he believed] that the best hope for amicable race relations lies in improving education.

“It is paradoxical,” he once said, “that Southern educational systems should be expected to produce well-rounded, broad-minded, and wholly dispassionate individuals whose well-developed intellectuals can suddenly reject lifelong patterns of conduct. This is a high standard to expect for schools without adequate facilities — stemming from a tax base incapable of producing sufficient revenue. Southern States — and particularly my own — have made valiant efforts in recent years to devote greater portions of their resources to education, but . . . only since the 1930’s has the South begun to share in the prosperity and affluence of America.”

(Fulbright, The Dissenter, Johnson and Gwertzman, Doubleday & Company, 1968, excerpts, pp. 148-150)

Though popular histories portray Lincoln as a simple and self-educated man who rose from a lowly background to become president, he was in reality a shrewd politician and wealthy corporate attorney. His clients before 1860 included the Illinois Central Railroad, then the largest railroad in the world, and an annual income of about $5000, more than triple that of the Illinois governor. After the War, Lincoln’s heavy-handed policy of military might was continued by his generals sent to eradicate the Plains Indians in the way of government-subsidized transcontinental railroads.

Bernhard Thuersam, www.Circa1865.com

Lincoln’s Pecuniary Interests at Council Bluffs

“A year prior to his nomination to the presidency — to be exact, in August, 1859 — he had visited Council Bluffs, Iowa, to look after his real estate holdings there and incidentally see the country.

A contemplated railroad to extend westward from the Missouri River to the Pacific coast was a live, but no new topic. For years such a possibility had been discussed, and in the first national campaign conducted by the Republican Party in 1856, a Pacific railroad was made a rather prominent issue. Shortly before his trip to Council Bluffs, Abraham Lincoln had purchased several town lots from his fellow [Illinois Central] railroad attorney, Norman B. Judd, who had acquired them from the Chicago and Rock Island Railroad. Council Bluffs at this time was a frontier town, containing about fifteen hundred people.

General [Grenville] Dodge . . . relates that “during Lincoln’s visit, some of the citizens of Council Bluffs took him to a high bluff known as Cemetery Hill, just north of the town. He was greatly impressed with the outlook; and the bluff from that time has been known as Lincoln’s Hill . . .

From here he looked down upon the place, where by his order, four years later, the terminus of the first trans-continental railway was established.”

The platform of the Republican National Convention that nominated Abraham Lincoln for president in May 1860 at Chicago, declared in the sixteenth plank:  “That a railroad to the Pacific Ocean is imperatively demanded by the interests of the whole country; that the Federal Government ought to render immediate and efficient aid in its construction . . . ”

General Dodge [said]: “There is great competition from all the towns on both sides of the Missouri River for fifty miles above and below Council Bluffs, Iowa, for the distinction of being selected as [the] initial point. President Lincoln, after going over all the facts that could be presented to him, and from his own knowledge, finally fixed the eastern terminus of the Union Pacific Railroad where our surveys determined the practical locality — at Council Bluffs, Iowa.”

(Lincoln and the Railroads, John W. Starr, Jr., Arno Press, 1981 (original 1927), excerpts, pp. 196-202)

The “Big Four” of Central Pacific Railroad fame included Charles Crocker and Leland Stanford, both of New York. While the War Between the States raged in the East, they made a fortune through generous government subsidies usually obtained by bribery or special treatment for Republican Party donors. While that party claimed to be waging war against the American South to eradicate slavery, the government-supported railroad companies used virtual slave labor for construction crews. The railroad crews used white supervisors of Chinese laborers in the same manner as Northern regiments of colored troops were led by white officers.

Bernhard Thuersam, www.Circa1865.com

Chinese Labor for the Central Pacific Railroad    

“Early in January 1865 Crocker’s agents scoured Sacramento, Stockton, and San Francisco for laborers . . . [but many] quit when they had earned enough money to pay stage fare to Virginia City. But children, too, were scarce in the foothills and for months the labor shortage remained acute. In the company’s new San Francisco office [Leland] Stanford . . . petitioned the War Department to send out five thousand Rebel prisoners to be put to work under the guard of a few companies of Union soldiers. But the war ended and the scheme had to be shelved.

A plan of importing, under contract, thousands of peons from Sonora and other Mexican states never got beyond the discussion stage . . . [but another] dubious possibility remained – the lowly Chinese. There were already thousands of them on the Coast . . . crowded into the wretched warrens of a score of “Chinatowns.”

A threatened strike of his white crews proved the deciding point. [Fifty] Chinese were herded on freight cars in the Sacramento yards and hauled to the end of the track. By sunrise they went to work with picks, shovels, and wheelbarrows. At the end of their first twelve hours of prodding industry Crocker and his engineers viewed the result with gratified astonishment.

Another gang of fifty was hired at once, then a third. Finally all doubt vanished and the Chinatowns of the state were searched for every able-bodied male who could be tempted by the bait of steady work and forty dollars a month.

Of course the white laborers of the Coast resented the affront. To counteract this injury, railroad spokesmen were presently referring to the Chinese as “the Asiatic contingent of the Grand Army of Civilization,” and Stanford was incorporating into company reports long defense for them . . . To charges that the Chinese were held in a state of virtual serfdom by the labor contractors with whom the company dealt, Stanford stated: “No system similar to slavery . . . prevails . . . Their wages . . . Paid in coin at the end of each month, are divided among them by their agents . . . in proportion to the labor done by each . . . These agents are generally American or Chinese merchants, who furnish them with supplies of food, the value of which they deduct monthly . . .”

By the end of 1865 the company was committed to the use of Chinese for most of their labor, and Stanford was hopeful that the force might be increased to fifteen thousand during the coming year. Of course no such supply was available in California . . . [but accordingly] boats from Canton were presently tying up at San Francisco piers, their rails swarming with yellow faces, while labor leaders predicted economic ruin for the Coast and threatened reprisals.

The advent of the Chinese relieved white men of pick and shovel work; many became gang foremen, others were promoted to teamsters, powdermen, or stone-workers. Moreover, the Chinese lived in their own camps, cooked their own meals, and knew their place. Thus the superiority of the Caucasian was undiminished, his dignity enhanced. Harmony reigned in the Sierra canyons and real progress began to be made.”

(The Big Four, The Story of the Building of the Central Pacific, Oscar Lewis, Borzoi Books, 1938, excerpts, pp. 69-72)

The existence of African slaves in the American South was largely the result of foreign interests and New England slavers importing already-enslaved black people from Africa. With the agricultural expansion of the United States enabled by the Louisiana Purchase, large numbers of laborers were required to work the fields.

Bernhard Thuersam, www.Circa1865.com

The Foreign Slave Trade in Antebellum Mobile

“An illicit market in Mobile supported foreign slave trade despite the federal prohibition against it since 1808. Reports appeared occasionally of African natives working in the city. In March 1859, according to the British consul, “twenty wild African Negroes” worked in Mobile. Since these slaves spoke only their native dialect, residents concluded that the slaves were recently imported. Their appearance sparked excitement among the citizens about the foreign slave trade.

Later in 1859 the schooner Clotilde, owned by the Northern-born steamboat builder Timothy Meagher, transported what was reputedly the last cargo of contraband slaves from Africa to the United States. Slavers then transported 116 survivors of this voyage to John Dabney’s plantation on the Alabama River a few miles north of Mobile. Some slave-owners in the area secretly purchased some of the Africans, and the shipowner and captain retained the rest.

Slave ownership remained confined to a small proportion of the free population of Mobile, slightly less than 6 percent in 1830 and 1840. Masters and mistresses came from widely different backgrounds and occupations. In 1860, New Englanders like Thaddeus Sanford, a newspaper publisher turned farmer; Gustavus Horton, a cotton broker; and William, Rix, a merchant, owned slaves. So did foreign-born Mobilians like Israel I. Jones and Jonathan Emanuel, [both] English-born merchants; Ann Yuille, a Scottish baker’s widow; and Albert Stein, a German-born hydraulic engineer.

In 1850, 191 women owned 807 slaves. Women made up nearly 10 percent of large slaveholders, those with 11 or more slaves, in 1850. By renting some of their slaves to local employers, widows received good incomes.

Sarah Barnes, sixth largest slaveowner in Mobile in 1850, presumably rented some of her 52 slaves to others. So did two other women with large slaveholdings in the 1857 city tax book. Eliza Goldthwaite, widow of a former State judge, who claimed 17 slaves, and Sarah Walton, widow of a former mayor of Mobile and mother of Octavia Walton Levert, owned 20 slaves.”

(Cotton City, Urban Development in Antebellum Mobile, Harriet E. Amos, University of Alabama Press, 1985, excerpt, pp. 87-89)

Well aware that the perilous “wolf by the ears” predicament facing the United States in his time was greatly the fault of New England’s penchant for slave trading profits, Jefferson saw the North sell its slaves southward and then proclaim themselves “free States” and morally superior to the South.

Bernhard Thuersam, www.Circa1865.com

Jefferson’s View of the North’s Slave Trade

“Mr. Jefferson’s opposition to slavery was known then, as it is now. Undoubtedly appreciating the fact that slavery, as prevalent then in the South, was extremely expensive to the masters, far more than “slavery” subsequently maintained by the Northern manufacturer, he stated his grievance upon this matter in the original draft of the Declaration [of Independence], but subsequently crossed out this paragraph.

In a courteous, yet Voltaire-like manner, he caustically refers to the slave-trade of the pious Yankee, and, rather than cause a disruption, he omitted that clause from his draft. Thus, while there was chance of earning a few dollars, the North was fully willing to accept the conditions and to continue the [slave] trade. Indeed, when certain Southern States prohibited the importation of slaves, it was New England which arose in defense of that trade.

“Times change and we with them.” After selling their slaves into the South, the same people suddenly changed their minds as to slavery, and, lifting up their hands in horror, described the Southern slave owner as an inhuman brute, a cruel oppressor, etc. The abolition societies and various fanatics, sincere and insincere, voluntary fanatics and paid fanatics, suddenly discovered supposedly crying needs of the “poor, downtrodden black brother,” and by various means and devices, attempted his emancipation. No crime and injustice was omitted in their acts.

And yet, simultaneously, hundreds of thousands of men, women and children, white too, were held in a more inhuman bondage in the North than the black man down South. Living under the most deplorable and miserable conditions, working long hours with hardly enough food to keep body and soul together, that mob of inhumanity was called free!

Truly they were free, free to die!”

(Secession, W.A. Lederer, Philadelphia, Confederate Veteran Magazine, September 1930, excerpt, pg. 338)

Elihu Root was an attorney, Carnegie institution functionary, served as Secretary of War under McKinley and Roosevelt the First, as well as Secretary of State under the latter. Born in New York in 1845, he witnessed the American South become an economic colony of New England, became a member of the notorious Union League Club and proponent of the income tax and American entry into WWI. Root was an opponent of the Federal Reserve Act. Signed into law by Woodrow Wilson with four gold pens on 23 December 1913, he remarked that the controversial Federal Reserve “measure had suffered many narrow escapes” before reaching his desk.

Bernhard Thuersam, www.Ccirca1865.com

Soundest Fiat Note Ever Issued

“On the floor of the Senate the [Federal Reserve] bill encountered heavy opposition. Senator Elihu Root, of New York, led the attack. His remarks were bitter and persistent. Such was Root’s standing that his assaults attracted much attention. The vehement antagonism of Senator Root was based on the charge that inflation and “fiat” money were at the center of the proposed system.

“The American people,” he argued, “closed the case for and against inflation . . . when they sustained the vote of the inflation bill by President Grant in 1874. Coming into power, the Democratic Party undertakes to reserve the oft-repeated judgment of the people of the United States upon this question. We are setting our steps now in the pathway which through the protection of a paternal government brought the mighty power of Rome to its fall. And we are doing it here without a mandate from the people of the United States.”

Defenders of the bill admitted that it was true that the Federal Reserve note was not, strictly speaking, a “Government” note, but contended that it was quite obvious that it was not “fiat” money. On the contrary, it was a sound bank note, secured by a forty percent gold reserve, a lien on the issuing bank and its stock, and by the Federal Government itself. There was little or no need for the Government obligation, it was held, but for the sake of safety and William Jennings Bryan, it was there.

The Senate paid little attention to the admonition of Senator Root. In fact, it actually enlarged the inflationary features of the bill. [They] deplored the fact that a statesman of Senator Root’s international reputation should have seized upon a politician’s catch phrase and denounced as “fiat” money the soundest note ever issued.”

(Carter Glass, Unreconstructed Rebel, James E. Palmer, Jr., Institute of American Biography, 1938, pp. 100-102)

It is said that the tariff was the most contentious issue in the United States between 1808 and 1832, and this exploded with South Carolina threatening tariff nullification in that latter year. This was settled with Congress steadily lowering tariffs. Economist Frank Taussig wrote in 1931 that by 1857 the maximum duty on imports had been reduced to twenty-four percent and a relative free trade ideal was reached, due to Southern pressure. He also noted that the new Republican-controlled Congress increased duties in December 1861 and that by 1862 the average tariff rates had crept up to 47.06%.

Bernhard Thuersam, www.Circa1865.com

No Submission to Northern Manufacturers

“South Carolina had opposed the tariff from the earliest days of the republic. The very first Congress, in 1789, had included a group of Carolina representatives known as “anti-tariff men.” When the Washington administration sponsored a mild import measure, Senator Pierce Butler of the Palmetto State brought the charge that Congress was oppressing South Carolina and threatened a “dissolution of the Union, with regard to that State, as sure as God was in his firmament.”

The tariff of 1816, passed in a wave of American national feeling after the War of 1812, found six out of ten Carolina members voting against the bill. John C. Calhoun and the other three members who supported the measure were severely censured at home.

Almost the entire South opposed the tariff of 1824. The spreading domain of King Cotton now had a well-defined grievance: the Northeast and the Northwest were uniting to levy taxes on goods exchanged for exported cotton; their protective tariff policy, and concomitant program for internal improvements, was benefiting their entire section at the expense of the South.

The policy protected New England [cotton] mills and furnished funds for linking the seaboard States of the North with the new Northwest by means of canals and turnpikes. The Southern planters paid the bills: they were forced to buy their manufactured supplies in a high market and their chief article of exchange, cotton, had fallen from thirty cents a pound in 1816 to fifteen cents in 1824. In addition, the internal improvements program offered them no compensation; the rivers took their cotton to the shipping points.

When the “Tariff of Abominations” passed in 1828, all the Southeastern and Southwestern members of the house opposed it, except for three Virginians. In the Senate, only two Southerners supported “the legislative monstrosity.”

The opposition to Northern tariff policy was most vociferous in the Palmetto State. [English-born South Carolinian Thomas Cooper presented] Lectures on the Elements of Political Economy (1826) and other writings of the period [which] receive credit for doing much toward shaping opinion on the tariff.

In 1827, he told Senator Martin Van Buren of New York that if [Henry Clay’s] American system were pushed too far, the Carolina legislature would probably recall the State’s representatives from Washington.

Seven years after [Cooper’s] arrival in the Palmetto State, he made the famous declaration that it was time for South Carolina “to calculate the value of the Union.” This historic utterance of July 2, 1827, gave rise to shocked expressions of horror, even among some Carolina hotheads, but it had been indelibly burned into the thinking of a generation. It had a habit of cropping out down through the years. Webster and Hayne both alluded to it during their famous debate.

An English traveler, stopping at Columbia . . . in 1835, had the opportunity to hear Cooper expressing his opinions and to observe the attitude of those who surrounded the strong-minded college president [of South Carolina College]. After this occasion, he noted in his diary:

“I could not help asking, in a good-natured way, if they called themselves Americans yet; the gentleman who had interrupted me before said, “If you ask me if I am an American, my answer is No, Sir, I am a South Carolinian.” [These men] are born to command, it will be intolerable to them to submit to be, in their estimation, the drudges of the Northern manufacturers, whom they despise as an inferior race of men. Even now there is nothing a Southern man resents so much as to be called a Yankee.”

(Romanticism and Nationalism in the Old South, Rollin G. Osterweis, LSU Press, 1949, excerpts, pp. 139-141)

E. I. Du Pont’s position as an anti-slavery advocate may have been more about containing black people in the South and forbidding them into the North and territories, as was common among Republicans. He may also have been opposed to the war but made a fortune through powder orders by providing 4 million barrels to the Northern government. Du Pont’s revolutionary “mammoth powder” for heavy artillery allowed greater range for bombarding American cities in the South.

Bernhard Thuersam, www.Circa1865.com

Du Pont and His Powder Industry

“. . . Du Pont, a strong Whig and anti-slavery partisan could hardly feel much enthusiasm for the [Mexican] war, even if it did bring him government powder orders. [In the postwar] Ohio and Indiana farmers were industriously clearing away timber land, and potent charges of Du Pont powder were needed to extract the stumps. This was the first era of railway building, and powder was a necessity for railroad contractors. William Astor and his Oregon Fur Company needed powder for hunting in the Northwest. Mining was also beginning to develop.

Du Pont did not need a war, but the gods smiled and gave him one. In 1854 England, Turkey, and others went to war with Russia, and guns in the Crimea needed powder. Du Pont filled [orders from both England and Russia, and] shipments of the “black death” went forth to the far corners of the world.

During the American Civil War Du Pont was again the patriot – at least the Northern patriot. Naturally the war brought Du Pont large orders and he was the mainstay of the Northern government.

The Civil War created a virtual partnership between Du Pont and the government. When the war was over, this relationship was not disturbed . . . [and] Working hand in glove with the government became a regular practice for Dupont.

The last decades of the nineteenth century witnessed the formation of powerful combines and trusts in American business. It was only natural that Du Pont should be transformed from a simple powder company into a gigantic combine with international ramifications.

The development came as a result of the Civil War [and] Government orders had been so reckless that the supply of powder on the market proved a drug to the entire industry. The government sold its surplus at auction prices sand the bottom fell out of the powder industry.

Beginning in 1872 the Du Pont Company gradually brought “order” into the industry, and in 1907 it was not only supreme in the field, but had virtually united all powder companies in the country under its guidance, control, or ownership.

The result of this monopolistic policy may be seen in the fact that by 1905 Du Pont controlled the orders for all government powder orders. Having established this monopoly, Du Pont turned again to price-fixing [and] national prices were established from which there was no deviation.

During the World War Du Pont supplied 40 per cent of the powder used by the Allies, and after 1917 its orders from the United States government were enormous.”

(Merchants of Death, A Study of the International Armament Industry, H.C. Engelbrecht & F.C. Hanighen, Dodd, Mead & Company, 1934, excerpts, pp. 29- 36)

A question seldom raised about the War Between the States and Southern defeat is the amount of economic indemnity paid to the North, economic reparations if you will, and forcing the defeated to pay the victor the costs of defeating them, as in the aftermath of the Franco-Prussian and World Wars.

Bernhard Thuersam, www.Circa1865.com

Southern Indemnity to the North

“In the wake of wartime devastation, moreover, Southern taxpayers had to help pay the interest and principal on the $2.5 billion federal debt taken on by the North to beat the South, although nearly all of the bond payments went to Northerners.   Taxpayers below the Mason-Dixon Line also had to help support the huge cost of pensions to federal veterans and their widows and dependents, though no such pensions were paid to Confederate veterans.

Such disbursements, obviously, were spent in the North. In these various ways . . . Southerners paid approximately $1.2 billion to the rest of the Union over a period of a half century — more than the indemnity Prussia levied on France after the Franco-Prussian War of 1870-1871.”

(A History of the American Economic System, Robert R. Russel, New York, Appleton-Century-Crofts, 1964), pp. 273-274