Browsing "Economics"

America’s Poor Country Cousin

Many saw Franklin Roosevelt as “one of the most eloquent exponents of States’ rights” while governor of New York and considered a safe alternative to nationalist Republicans who precipitated the Depression. But it was ironic that so many conservative Southern legislators dedicated to preserving their region’s way of life helped Roosevelt enact the greatest reform legislation in the country’s history. This would occur despite the sniping of Huey Long and the dependable opposition from conservatives Carter Glass and Harry Byrd of Virginia, and Josiah Bailey of North Carolina.

America’s Poor Country Cousin

“[Many] traditional Southerners who accepted the New Deal, [did so] possibly because of party loyalties and partly because of economic benefits going to their areas, and some modern young Southerners, like Maury Maverick and Lyndon B. Johnson, both of Texas, who were ready with fire and enthusiasm to espouse the New Deal causes.

Roosevelt knew precisely how to ingratiate himself with these leaders; he did it by providing patronage to their areas and bestowing honors upon them as frequently as possible. Even an old recalcitrant like Glass, full of venom against the New Deal, was mollified considerably by Roosevelt’s assiduous courtship in the form of jollying notes and flattering attention in public.

During those first years, most Southerners – like all Americans – were deeply concerned with how the New Deal was affecting them, and it was this that shaped their attitudes toward Roosevelt. From the outset most of the economic leaders of the South were not pleased.

In many ways they had capitalized upon the separate and unequal role of the South in the national economy. Most of the old disorders against which Southern leaders had so long complained were still plaguing the South: it was discriminated against in freight rates; it lacked a fair share of capital and industry; and it was predominantly agrarian.

Northern corporations drained profits out of the South, and in times of economic distress they sometimes closed their Southern factories first. The Southern economy in both its private and public sectors was the poor country cousin.

Unfortunately, the “country cousin” had tried to support himself by working for lower wages. Both agriculture and industry in the South maintained their existence only through providing the most meager return to farmers and workers. Southern States lured Northern industry to their areas not only by the promise of low wages but also by tax concessions which precipitated an undue share of the cost of government onto people who were already underpaid.

[As a result of  FDR’s National Recovery Act which raised wages,] new machinery was installed [in mills] which required twenty fewer employees to operate . . . employers fired workers of marginal usefulness, required the same work output in a shorter number of hours, and engaged in subterfuges (such as kickbacks from salary checks) in order to keep their labor costs from soaring.”

(The Conservative South, Frank Freidel; The South and the Sectional Image: The Sectional Theme Since Reconstruction, Dewey W. Grantham, Jr., editor, Harper & Row, 1967, excerpts pp. 104-110)

Sins & Profits of Pilgrims & Puritans

New England settlers, like those in Virginia, were part of a joint stock company organization. Those at Plymouth in 1620 were the first enduring compact settlement, and comprised of John Robinson’s Separatist church of Leyden, Holland. “They complained that economic necessity forced them to be hard not only on their servants, but also on their children, who in Holland fell easy victim to the licentious example of the Dutch youth and to the temptation of the city.”

These settlers eventually found that rum made from West Indian molasses could be traded to the Indians for furs, and later traded to African chieftains in exchange for their slaves.

Sins & Profits of Pilgrims & Puritans

“To extend the fur trade monopoly, a patent was obtained from the New England Council for Kennebec, in what is now Maine. This monopoly was so zealously guarded that bloodshed resulted. Their Puritan brethren in Massachusetts complained, “They have brought us all, and the gospel under common reproach, of cutting one another’s throats for beaver.”

Not a little of the animosity of the Pilgrim fathers and other Puritan settlers toward Thomas Morton, a nearby English trading gentleman lawyer, was aroused by his interference with their profits from the fur trade. “Morton,” wrote [Governor William] Bradford, “has committed many sins. He is licentious and atheistical. He offers a haven to runaway servants, and supplies the Indians with guns.”

All sorts of punishments were visited on this “unscrupulous competitor,” from burning down his settlement to banishment to England. Morton quite gaily explained in his New England Canaan that, while he gave the Indians guns to obtain furs, the Pilgrims gave them more potent rum.

“Commerce has opened new lands for the preaching of the gospel,” promoters wrote. But the godly who live in wealth and prosperity must head the settlements, for a great work requires the best instruments, not a multitude of rude and misgoverned persons, the very scum of the land.

In England there is little hope for the godly. The fountains of learning and religion – the universities – are corrupted by “licentious government of these seminaries where men strain at gnats and swallow camels, use all severity for maintenance of caps” and other ceremonials, but tolerate “ruffian-like fashions and disorder in manners.”

(The Economic Mind in American Civilization: 1606-1865, Joseph Dorfman, Viking Press, 1946, excerpts pp. 29-34)

Tampering with New England’s Slave Trade

Much of Britain’s difficulty with its American colonies came from New England smuggling and dependence upon French West Indies molasses which it distilled into rum, which in turn fueled its slave trade. In his last years, Boston’s John Adams “saw the Revolution, at least in part, as a struggle over molasses. He said “I know not why we should blush to confess that molasses was an essential ingredient in American independence.

It takes no great imagination to conclude that without British and New England populating the American colonies with African slaves, and perpetuating this into the mid-nineteenth century, the war which destroyed the American republic in 1861 might not have occurred.

Tampering with New England’s Trade in Slaves

“[The Molasses Act of 1733 enacted by the British Parliament] was introduced as a result of complaints from the British islands in the West Indies, whose economy was based on the production of sugar, against the competition of the French sugar islands – St. Dominique, Guadeloupe and Martinique. The British West Indies – Antigua, Barbados, Jamaica, Monserrat and St. Christopher – were such an immense source of wealth that they were considered at the time to be more important to the empire than the North American colonies.

Molasses, a by-product of the islands’ sugar mills, was turned into rum in New England. There were so many distilleries in Rhode Island, Massachusetts, and Connecticut that they were known as the Rum Coast. Rum, to a degree hard to believe in a later and much different world, was essential to the New England economy.

It was one of the main means of profitable exchange for furs from the Indians and slaves and ivory from Africa. Some of the greatest early New England fortunes were based on the rum trade, most of which was carried on illegally. Boston alone was said to have about fifty distilling houses. Nothing could set off a panic in New England more surely than tampering with this trade.

The trouble arose because the British islands could not supply all the molasses needed by the North American distilleries or supply them as cheaply as the French islands. The French West Indian molasses manufacture and the New England rum production were as if made for each other. By [Sir Robert] Walpole’s time, an immensely important trade had developed between the French islands and the New England colonies. Everyone benefited, except the British sugar islands.

The result was the Molasses Act, which was designed to cut off the [French-New England] trade by putting a 100 percent duty upon non-British sugar. The agent of Massachusetts and Connecticut in London foretold funereally that the act was bound to ruin “many thousand families there.” Richard Partridge, the New York agent in London, brought up the argument of nonrepresentation in Parliament to denounce the act . . .”

By passing the act, [Walpole] legally appeased the British East West Indian planters. By doing little or nothing to enforce it, he appeased New England rum merchants. Smuggling was not a particularly American vice. Even when Secretary at War he had been engaged in smuggling his wines up the Thames.”

(The Struggle for Power: The American Revolution, Theodore Draper, Vintage Books, 1997, excerpts pp. 95-96)

Apr 25, 2019 - America Transformed, Economics, Lincoln Revealed, Lincoln's Patriots, Northern Culture Laid Bare, Republican Party, Sharp Yankees    Comments Off on White House Insider Information

White House Insider Information

William O. Stoddard of upstate New York was one of three personal secretaries utilized by Lincoln, joined by John Hay and John Nicolay. Stoddard had an adventurist personality and became one of the office-seeking multitude looking for appointment in Lincoln’s new Republican administration.

White House Insider Information

“Stoddard was high-spirited . . . “And almost every man who can discover means for doing so is gambling in stocks and gold.” This game is fascinating, he says, because of “the sudden and unaccountable jumps and falls of what are called its prices, meaning the price of greenbacks. They are rather the pulsations of the public hope and fear concerning the national credit.”

To put the case as simply as possible, the new greenbacks the government issued in 1862 were not backed by gold, but they were placed on par value with bonds that were. The Union had not coin enough to pay its bills . . . It was patriotic to hold greenbacks, but even the truest patriot had himself and his family to feed. So rumors of distant battle, another Union defeat or embarrassment, would set many citizens scrambling for gold and speculators selling paper money short – or buying it in the belief a Union victory would send it soaring again.

The speculation that year was running insanely wild in New York and other financial centers, and I formed the idea that it was almost true patriotism to be what is called a “bear” in gold. I therefore went in, a little at first and then deeper . . . I had not the least idea that there was anything wrong in it for a fellow in my position . . .”

Stoddard had noted, as he did every day, the price of gold, selling at $132 per ounce, and it would go even higher if [General Ambrose] Burnside failed in Virginia. He had his eye on the stock exchange, especially the gold and currency markets, where he hoped to make his fortune.

Rumors of Lee’s rapid advance [into Pennsylvania] spread panic in the mid-Atlantic cities from Baltimore to Harrisburg, Pennsylvania. The price of gold had been rising as the result of Union defeats; now the fear of a Confederate invasion spread to the financial markets as well. The price of gold was soaring, and Stoddard – the shrewd gambler – was “shorting” the metal and piling up greenbacks . . . [and] had made a killing in the gold market.  

“Does the President take any interest in Wall Street gambling operations?” Stoddard asked rhetorically in his memoirs. “Of course he does, for the currency is the life of his policies.”

Over dinner one evening, they were discussing precious metals. “What is the price of gold this morning? Is it up or down? Lincoln asked his secretary. “Up Mr. Lincoln. The street is wild.”

“Well now,” the president replied, “they don’t know everything. If I were a bear on Wall Street, and if I were short of gold, I’d keep short. It’s a good time to sell.”

New York financier Clinton Rice testified that he made Stoddard’s acquaintance in 1862, when he told Rice “he enjoyed superior facilities for obtaining in advance all information of a political, official and diplomatic character likely to affect gold, stocks and other commodities. I entered into an arrangement with him [Stoddard] to furnish me telegraphic cipher dispatches.” Rice would use the information to invest in stocks or gold, and divide profits with Stoddard “share and share alike.”

As soon as there was “any important action of the Cabinet, or on receipt by the President or heads of departments of any important military or naval . . . operation” or diplomatic development, the secretary would wire Rice at once in cipher and the financier would place his bets. [Stoddard referred] to the “hollow” Union victory at Bristoe Station three weeks earlier, and how much the press had exaggerated the importance of the event. “I think I could run a gold line here better than anywhere else . . .”

(Lincoln’s Men: The President and His Private Secretaries, Daniel Mark Epstein, HarperCollins, 2009, excerpts pp. 100; 133; 135; 152; 172-173)

General Scott’s Fearful Foreboding

General Winfield Scott’s (1786-1866) view of peacefully allowing the American South pursue independence aligns with that of Thomas Jefferson’s regarding State sovereignty and newer States formed out of Louisiana.

In a letter to John C. Breckinridge in August 1803, Jefferson wrote: “[We] see their happiness in the union, and we wish it. Events may prove otherwise . . . God bless [both old and new States], and keep them in union, if it be for their good, but separate them, if it be better.”

Scott’s war cost estimates below were very low. The direct financial cost of the war’s operation was about $8 billion, which, eventually increased to $30 billion factoring in the destruction of property, derangement of the labor power, the Northern pension system and other economic losses. In human cost: one soldier, North and South, died for every six slaves freed and for every ten white Southerners saved for Lincoln’s union.

In addition, “The money spent to field the two armies would have purchased the liberty of the four million slaves five times over. (Tombee, Portrait of a Cotton Planter, Theodore Rosengarten, Morrow & Company, 1986, page 212.)

General Scott’s Fearful Forebodings

“[Scott’s] opinion on the 3rd of March [1861 was sent by letter] to Secretary [William] Seward. In this he exclaims: “Conquer the seceded [cotton] States by invading armies. No doubt this might be done in two or three years by a young and able general – a Wolfe, a Dessaix, a Hoche, with three hundred thousand disciplined men, estimating a third for garrisons, the loss of yet a greater number by skirmishes, sieges, battles and Southern fevers.

The destruction of life and property on the other side would be frightful, however perfect the moral disciple of the invaders. The conquest completed, at that enormous waste of human life to the North and the Northwest, with at least $250,000,000 added thereto, and cui bono [who benefits]?

Fifteen devastated provinces! [Not] to be brought into harmony with their conquerors, but to be held for generations by heavy garrisons, at an expense quadruple the net duties or taxes it would be possible to extort from them, followed by a protector or emperor.” In view of these fearful forebodings, we are not surprised that he should have despaired of the Union, and been willing to say to the cotton States, “Wayward sisters, depart in peace.”

Nor that he should have fallen back on his opinion in the “Views” (29 October 1860), that “a smaller evil [than such a civil war] would be to allow the fragments of the great Republic to form themselves into new Confederacies.” [Scott] advises Mr. Lincoln’s administration “to throw off the old [sectional Republican party] and assume a new designation – the Union party; adopt the conciliatory measures proposed by Mr. Crittenden, or the Peace Convention, and my life upon it, we shall have no new cases of secession, but, on the contrary, an early return of many if not all of the States which have already broken off from the Union.”

(Mr. Buchanan’s Administration on the Eve of Rebellion, James Buchanan, D. Appleton and Company, 1866, excerpts pp. 172-173)

Capitalism Instigated by the Devil

The writer below asks the question: “Should the South become a replica of the industrialized North, with all the advantages and disadvantages that go with that way of life? Or does the South have something essential and unique which is worth preserving? Does Birmingham want to be another Pittsburgh, Richmond another Chicago, Raleigh another Newark, or Charleston another Detroit?” Calhoun biographer Margaret Coit pondered “Whether the South of today [1950], in the throes of warborn prosperity, will sacrifice the remaining values of its way of life by accepting the industrial democracy against which Calhoun fought . . .?”

Capitalism Instigated by the Devil

“The not quite immoveable object is, of course, the Southern way of life. It arises more from instinct than philosophy; back of it are the ancient traits and ingrained habits of a people who are notoriously set in their ways.

Suspicion of the Calvinistic-Puritanical-Yankee notion of “work for work’s sake” is one of those traits. A Calhounistic “wise and masterly inactivity” is more to the Southern taste as a general rule. When Southerners read the tributes of Northern poets to work, such as James Russell Lowell’s “and blessed are the horny hands of toil,” they doubt whether either writer had enough callouses on his hands to know what he was talking about.

Such pep talk makes Southerners tired; they have to go somewhere and lie down to digest it. One reason the South loves cotton farming so much is that it gives them about six months of each year to loaf and invite their souls. If the soul refuses the invitation, they just loaf.

The South has had a long and deep-seated suspicion of industrialization. It wants the fruits of industry, but not the tree. This attitude goes back to Thomas Jefferson, if not further. Southerners have always been convinced that the planter is the nobler work of God than the manufacturer, the farmer than the mill hand. While the Southerner may not remember the exact words which Jefferson used in the Notes on Virginia in 1785, the sentiment is bred in his bone:

“Those who labor the earth are the chosen people of God . . . while we have land to labor then, let us never wish to see our citizens occupied at a work-bench or twirling a distaff. Carpenters, masons, smiths are wanting in husbandry, but, for the general operation of manufacture, let our workshops remain in Europe . . . The mobs of great cities add just so much to the support of pure government as sores do to the strength of the human body.”

In the 1850s Southerners talked about the evils of capitalism with its “wage slaves” as bitterly as if they had been Karl Marx and Friedrich Engels, though to be sure it was not the capitalism of the Southern planter, but the capitalism of the Northern manufacturer to which they objected.

This is the South which not only likes the Negro “in his place” but likes every man in his place and thinks there is a certain place providentially provided for him. To this South, industrialism, with its shift from status to contract and its creation of a new-rich, rootless and pushing class of people, is plainly instigated by the devil.”

(Southern Accent: From Uncle Remus to Oak Ridge, William T. Polk, William Morrow and Company, 1953, excerpts pp. 243-245)

“An American Business”

In 1821, after sailing to the proposed site of the colony at Cape Mesurado, present-day Monrovia, Lt. Robert Stockton and Reverend Eli Ayers journeyed twenty miles inland to “convince the most powerful of the native leaders, “King Peter,” to discuss terms to sell the land.

The Africans objected to the intruders and accused them of “kidnapping Africans,” and “destroying the slave trade” – the first was the African tribe’s primary business, the second the African tribe did not want to happen.

Americans were trying to eliminate the slave trade from Africa and provide repatriation for Africans freed in the US – but working against these humanitarian efforts were an increasingly complex slave trade, New England-built slave ships and cotton mills (the latter made profitable by Massachusetts inventor Eli Whitney’s invention), and New York merchants and banks hungry for profits. It is noteworthy that none of the slave ships sailed under the Confederate Battle Flag.

“An American Business”

“[In] mid-1799 Secretary of the Treasury Oliver Wolcott wrote the customs collector at Boston that “Captain Decatur of the Navy during his late cruise . . . near Cuba, met with the brig Dolphin of Boston, William White [the] Master, with 140 to 150 slaves for sale [and] procured on the coast of Africa.”

Wolcott directed the collector to “take requisite measures to enforce the law.”

And, in April 1800, the Secretary of the Navy passed along to the treasury secretary a short list, sent along by Captain Bainbridge of the USS Norfolk, of suspected slavers who recently returned from Cuban waters to Philadelphia.

With the enactment of the 1800 statute, the Navy immediately began seizing suspected slavers and sending them in for adjudication. The first three were captured in the space of a month. The sloop Betsey of Boston takes the honor of being the first slave-trading vessel captured by the US Navy.

Meanwhile, other factors encouraged the trade, among them the wide use of the cotton gin and the Louisiana Purchase in 1803. The former vastly increased production, and the latter moved the slave economy westward to new lands.

[After the war of 1812] the slave trade became logistically complex. The selected American-registered vessel was chartered in Cuba or Brazil by a slave dealer and sailed to Britain or elsewhere to load a cargo particularly suited for the African coast trade: cheap muskets, rum, etc.

[Often] the vessel needed to hover off the coast while the agents ashore gathered the human cargo . . . And once the Africans were gathered and the night was dark, canoes were loaded with the slaves and rowed from shore to ship. Then the ship was “sold” on the spot and became Spanish, Portuguese or Brazilian . . . [and] made passage back to the Western Hemisphere with the slave cargo.

Thus, given fast, American-built vessels; immunity from search; and growing profits, the trade was becoming an “American business.” Though it should be kept in mind that the major markets in this era were Brazil and Cuba, and rarely were slave cargoes brought directly to the United States.

By all accounts the last half of the 1830s marked a quickening of the slave trade, particularly to Cuba, fed by high prices and minimum interference from American cruisers.

The British Mixed Commission at Havana reported the arrival of 240 illegal slavers during the years 1836 through 1839, fifty-eight of which were under American colors. And it was reported that a New York mercantile house had taken in $240,000 in profits on the trade in the space of fourteen months, and that slaves had brought ten times their purchase price at Havana in the same period.”

(African Squadron: The US Navy and the Slave Trade, 1842-1861, Donald L. Canney, Potomac Books, 2006, excerpts pp. 2-4; 21-23)

The Slave Trade

The lack of historical perspective today supports the mistaken belief that the American South somehow introduced and perpetuated African slavery in North America, and that the Confederate Battle Flag somehow represents this gross inhumanity.

The truth is not difficult to find, and it is that a Portuguese ship brought the first African to North America, and well after the Spanish had brought them, already enslaved by their African brethren, to the islands of the Caribbean – the latter done after it was found that the local Indians they had enslaved for work died off too quickly.

The British fostered the rise and perpetuation of African slavery in America as a colonial labor system – and African chieftains supplied their needs with captured men, women and children.

The New Englanders quickly followed the British example and became preeminent slavers in their own right, with the economic base of that region founded on slave trade profits, and the later mills of Massachusetts dependent upon slave-produced cotton for profitability.

The American South no more fought to preserve slavery than did the American Colonies after Lord Dunmore’s infamous emancipation proclamation of 1775; nor was the United States fighting for the preservation of slavery after Vice Admiral Sir Alexander Cochrane issued his own emancipation proclamation in 1814.

The American South fought for political independence from a North which had lost its moorings to the Constitution of 1789 which held the States together. The South had remained faithful to that document, and departed that federation to maintain its political liberty. The North prosecuted a devastating war to prevent that political liberty, “freed” the slaves which they themselves had helped securely fasten upon the South, and converted them into a dependable voting bloc with which to maintain political hegemony over formerly free States.

The Slave Trade

“In the library of the State College at Raleigh, N.C., there is a notable book of some three hundred and fifty pages and forty-nine illustrations – the fifteenth publication of the Marine Research Society, of Salem, Mass., and published in Vermont – the title being: “Slave Ships and Slaving.”

The introduction is written by a British navy officer, and the text is by George F. Dow.

Within ten years after the discovery of America the Spaniards began to transport Africans to work in their possessions, and all the maritime nations of Europe followed their example; and during the next two hundred and fifty years the English transported twice as many as all other countries put together. They began in Queen Elizabeth’s time, kept it up in the next reign, and, in 1662, the Duke of York undertook to transport to the British Colonies three thousand slaves every year. Ten years later the King himself became interested and, under contract, England got from Spain the exclusive right to supply the Spanish colonies [with African slaves]; and the King of England and the King of Spain each received one-fourth of the profits.

Between 1680 and 1688 England had two hundred and forty-nine slave ships; from 1713, for twenty years, 15,000 slaves were annually brought to America. In 1786, England brought over 97,000 slaves. During eleven years, 1783-1793, Liverpool owned eight hundred and seventy eight vessels in this trade, and imported many thousands of slaves in the West Indies. They were worth some 15,000,000 pounds of that period; equal to about $150,000,000 now [1930].

While Liverpool was the chief port for this trade, Bristol was a close second. Then, over here, New England was not slow. Massachusetts started in 1638. However, Rhode Island became the rival of Liverpool. Ten pages on this volume are devoted to the operations in Rhode Island. There nearly everyone was interested.

In 1750, “Rum was the chief manufacture of New England. About 15,000 hogsheads of molasses were annually converted into rum in Massachusetts alone. The number of stills in operation was almost beyond belief. In Newport there were no less than twenty-two.” With rum they purchased Negroes in Africa; these were exchanged for molasses in the Caribbean Islands and South America, and the molasses was brought to the New England stills; and so the profitable business was carried on in a circle to an extent beyond ordinary imagination!

It was the very basis of New England’s prosperity. At Newport, Bristol and Providence [Rhode Island], some of the most respectable and wealthy merchants were engaged in the trade. Even preachers and philanthropists were advocates. “One elder, whose ventures in slaving had usually turned out well, always returned thanks on the Sunday following the arrival of a slaver that the Africans could enjoy the blessing of a Gospel dispensation.”

The Southern colonies had no ships, nor any molasses. They were not in the trade. However, the British Slaving Company, in which the King of England was a partner was in duty-bound to supply the needs of the colonies as particularly required by Good Queen Anne. The Colonies were forbidden to manufacture, and their products were required to be shipped to England, where they were exchanged for British goods. So the more slaves making products, the more goods the Colonies bought in England.

At length Virginia forbade any more importation [of Africans] but the King annulled that Virginia law. In Jefferson’s draught of the Declaration of Independence he denounced the King most severely for annulling these prohibitions. However, in 1774, importations were forbidden by the people of North and South Carolina, and there were no importations until 1803, when South Carolina opened her ports for four years.

Great Britain abolished the [slave] trade in 1807, just as the Congress of the United States did. After a few years, other countries followed our example: Spain in 1820, Portugal in 1830; but the trade between Portuguese Africa and Brazil did not cease until Brazil, in 1888, put a stop to it. That this volume has been prepared by the Marine Research Society, of Salem, Mass., speaks well for New England, and it should be in every library of the South.”

(The Slave Trade, Capt. S.A. Ashe, Confederate Veteran, December 1930, pg. 457)

A Party of Disunion and Thievery

Fielding their very first presidential candidate in 1856, the new Republican party was responsible for breaking up the 1789 federation of States only four years later – it was indeed the party of disunion. With conservative Southerners gone from Congress in 1861, the Republicans began dismantling the Founders’ republic and ushered in America’s “Gilded Age” and pursuit of empire. This new America would be “despotic at home and aggressive abroad” as Robert E. Lee famously remarked to Lord Acton shortly after the war ended.

A Party of Disunion and Thievery

“In the Plundering Generation, Ludwell H. Johnson summarized the real reasons for Lincoln’s violent opposition to the South’s independence: “Manufacturers feared the loss of American markets to a flood of cheap British goods pouring through a free-trade Confederacy; Northern shippers feared the loss of their monopoly of the coasting trade and their share of the transatlantic carrying trade; merchants feared the loss of the profits they garnered as middlemen between the South and Europe; creditors feared the loss of Southern debts; the Old Northwest feared the loss or curtailment of the Mississippi trade; the Republicans feared the disintegration of their party should it let the South go and bring upon the North all the consequences just mentioned.”

Lincoln waged war on the South, however, to achieve more than preservation of the status quo. War was the means to establish the North’s hegemony over the political and economic life of the United States. War offered Lincoln, his party, and Northern special interests a continental empire to exploit. And they did so with ruthless abandon. In the North, Lincoln’s Congress imposed excise taxes on virtually all items; raised the protective tariff to the highest level in the country’s history (under the Morrill Act of 1861); issued paper currency (Legal Tender Act of 1862); awarded Northern railroad companies government loans and extensive land grants (Pacific Railway Act of 1862); unilaterally repealed Indian land claims; promoted settlement of western lands by Northerners (Homestead Act of 1862); effectively “nationalized” the country’s financial institutions (National Banking Acts of 1863 and 1864); and furnished Northern business with cheap labor (Contract Labor Law of 1864).

In the South, Congress authorized the theft of tens, if not hundreds of millions of dollars, worth of Southern property (Confiscation Acts of 1861 and 1862, Direct Tax Act of 1862, and Captured and Abandoned Property Act of 1863). The cotton, alone, that the North stole has been conservatively valued at $100 million.

This legalized robbery was in addition to the plundering by Lincoln’s Army. In December 1864, Sherman wrote: “I estimate the damage done to the State of Georgia . . . at $100,000,000; at least $20,000,000 which has inured to our advantage, and the remainder is simple waste and destruction.”

With Lincoln came the wholesale corruption of the political system. In 1864, Edward Bates, Lincoln’s attorney general, lamented that “the demoralizing effect of this civil war is plainly visible in every department of life. The abuse of official powers and thirst for dishonest gain are now so common as they cease to shock.”

(Lincoln and the Death of the Old Republic, Joseph E. Fallon, Chronicles, August 2002, excerpts pp. 44-45; www.chroniclesmagazine.org)

Resisting Lincoln’s Draft

The New York City draft riot of mid-1863 was the desperate result of dwindling Northern enlistments after a bloody 1862, little Northern military success to show for its invasion of the South, and Lincoln’s conversion of the war to one of emancipation, which few in the North were willing to die for. With Lincoln’s conscription implemented, Northern governors feared losing the next election and began raising monies to fund exemptions for their constituents as well as bounty money to attract the poor, released prisoners and foreigners into the army of emancipation.

Further, Massachusetts Governor John Andrew sent his State agents into the occupied South to acquire black “recruits” who would count against his State’s troop quota established by Lincoln.

In New York’s Oswego County, “the Republican Times advocated the recruitment of Negroes to fill the ranks and delay the draft” (Oswego County’s Response to the Civil War, New York History, Jan. 1961, pg. 79). Oswego County later sent a delegation to occupied Newport News, “for the purpose of procuring substitutes among the freedmen,” and expecting they could be hired cheaply.

Resisting Lincoln’s Draft

“July 21. Tuesday [1863].

The N.Y. Herald of 16th had been received, & its accounts quoted by today’s papers. The riot had continued through third day, (Wednesday, 15th,) without abatement. Several severe conflicts had taken place between the military & “the people” . . . “Negroes greatly persecuted, & 3 hung.” A great flight of Negroes from the city — & also many of the superior inhabitants . . . “The (City) Council has appropriated $2,500,000 for conscripts.”

This last incident is the most important of all. The city government has by this action completely submitted to the mob, & agreed to pay, out of the property of those citizens who possess property, for the exemption from military service of all conscripts of the city who have no property. This is a far more signal victory to the rioters than was the suspension of the draft.

It [the draft] may now be safely resumed & carried out, without annoyance to the conscripts, as the payment for their exemption is fixed in advance & at the expense of other people . . . The procedure is equivalent to offering a reward of $300 (the price for exemption) to every rioter who would have been liable to conscription.

This is enough to induce like riots in every other Yankee town. And before the operation of this additional incentive, like riots, or disturbances, but less violent & destructive than in New York, had broken out in sundry other places – at Brooklyn, Troy, Newark, Yorkville, Harlem, Jamaica, Westchester, & elsewhere.

July 25. Saturday [1863].

The [New York City] draft is not to be renewed for a week . . . waiting until a full force of 35,000 men shall be arrayed in the city to restrain the populace, & enforce the execution of the draft. Then, I think, there will be more serious & bloody work than before . . . the army, with artillery and grape-shot in every street, may restrain important outbreaks in the city . . .

The like policy of buying exemptions of the poor, is under discussion in the public councils of Philadelphia, & $2,000,000 is the appropriation proposed. It will operate like the policy of the sinking western Roman empire in buying the mercy & the retreat of the invading hosts of barbarians, when threatening to enter to sack and burn the city of Rome.

In the meantime, [editor Horace] Greeley, through the [New York] “Tribune,” (the organ of the thorough abolitionists,) is calling upon the federal power to carry out the draft, & to crush all opposition by overwhelming military force.”

(The Diary of Edmund Ruffin, Volume III, A Dream Shattered: June 1863-June 1865, William K. Scarborough, editor, 1989, LSU Press, excerpts pp. 74-75; 83)