Circa1865

The Truman administration is considered responsible for the unnecessary postwar intervention in Korea, and the subsequent Korean conflict which was greatly instigated by the Rhee puppet regime. As the internal Korean civil war began in the late 1940s, Truman only called in the United Nations “to add the weight of what was considered to be “world opinion” in support of America’s policy.” The initial American commander, General John R. Hodge, presciently commented that it would be better to “leave Korea to its own devices and an inevitable internal upheaval for its own self-purification.”

Bernhard Thuersam, www.Circa1865.com

The US Country-Splitting Business

“Senator Symington. “We go into this country splitting business . . . First we split Germany. Then we split China. We stay with billions and billions of dollars and hundreds of thousands of people. Then we split Korea, and stay there with billions of dollars and tens of thousands of military, all at heavy cost to the American taxpayer. Then we split Vietnam . . . Now we split Laos . . . Do you know of any other country we plan to split soon?”

Mr. Porter [US ambassador to South Korea]: “No sir.”

Senator Symington: “This has been quite an interesting policy hasn’t it, over the years? . . . Our allies don’t do [this], not do our possible enemies. We do it all over the world . . .”

(William Porter Testimony, US Security Agreements and Committees Abroad, Republic of Korea, Hearings before the Subcommittee on US Security Commitments Abroad of the Committee on Foreign Relations, US Senate, Ninety-first Congress, Second Session, 1970, pp. 1579-82. Without Parallel, The American-Korean Relationship Since 1945, Frank Baldwin, editor, Pantheon Books, 197, pg. 109)

The US armed the Soviet Union to the teeth as an ally against Germany, in the process creating a postwar enemy it has spent trillions combatting. The atomic age also spurred city planners into central planning action to disperse city inhabitants which triggered urban blight and suburban sprawl. Jefferson wrote: “I view great cities as pestilential to the morals, the health and the liberties of man”; and noted that “the inhabitants of the commercial cities are as different in sentiment and character from the country people as any two distinct nations, and are as clamorous against the order of things [republicanism] established by the agricultural interest.”

Bernhard Thuersam, www.Circa1865.com

The Atomic Jolt Forward for City Planners

“In the atomic age, [a] report concluded, it was the nation’s newspapers that would “set the pattern and pace” of the public’s scientific knowledge and hence determine its ability to make informed decisions on life-and-death issues.”

City planner Tracy B. Augur told the American Institute of Planners in 1946 that the planning profession had a crucial role to play in guiding the urban dispersal being widely advocated as a civil defense measure. If properly conducted, he said, such a project would involve not just piecemeal resettlement [of Americans outside cities], but a whole new urban planning approach.

The starting point, he went on, was for experts to define “the qualities of social life that are worth having” and then to “plan the kind of urban structure that will make them more fully possible.” Demonstrating the readiness of his profession to rise to this challenge, Augur presented a series of charts showing how a “typical city of half a million could be rearranged from a concentrated to a dispersed form without weakening its capacity to function as a single metropolitan unit.”

Such a systematic attack on the problems of the city, Augur insisted, was in any case overdue. “Long before the threat of the atomic bomb,” he said, urban planners had warned of the need for comprehensive programs to save the American city from “the blight . . . gnawing at its innards” and to convey to the larger society their dream of a totally-planned urban environment. Now suddenly Hiroshima and Nagasaki had propelled the question of the urban future to the top of the public’s agenda.

In the realm of city planning, Augur concluded hopefully, “the threat of atomic bombing may prove a useful spur to jolt us forward!”

At long last, city planners would assume the central social role they had long sought. Having lost the public ear after their heyday in the Progressive Era, city planners, under the spur of the atomic threat, would finally take charge of urban development and guide it along rational lines.

In a 1947 address to the National Recreation Association, a longtime activist in the park and playground movement painted the familiar grim picture of mass leisure in the atomic age, but hastened to offer a solution: “The answer to all this is, of course, Education and Recreation.”

The government must take the lead, he said, in expanding the nation’s recreational resources, including “parks and playgrounds, game reserves, public theaters, opera houses, orchestras, [and] hobby centers.”

Echoing Tracy Augur’s message to the city planners, this speaker assured the recreation specialists that their profession would be crucial to society’s survival in the era of atomic energy. “Unless ability to make wise use of leisure increases,” he insisted, “there is no doubt that our civilization is doomed.”

However implausible and even comic such views seem in retrospect, they were advanced in all earnestness in the perfervid post-Hiroshima cultural climate.”

(By the Bomb’s Early Light, American Thought and Culture at the Dawn of the Atomic Age, Paul Boyer, UNC Press, 1994, pp. 152-153)

Lincoln instituted a national banking system which “developed into something that was neither national nor a banking system” and more represented a loose organization of currency factories “designed to . . . [serve] commercial communities and confined . . . almost entirely to the New England and Middle Atlantic States.” This system was more concentrated in New York and fraught with abuses, and superseded by the even more abusive Federal Reserve Act of 1913.

Bernhard Thuersam, www.Circa1865.com

The Anticipated Profits of Next Year’s Pay Checks

“July 3, 1930

Mr. McFadden: “Mr. Speaker and gentlemen, time and events have arrived at a point where we should no longer deceive ourselves concerning the business situation. Continued statements of unfounded optimism will have only an unhappy effect upon the minds of millions of our citizens who are now unemployed and who, in the circumstances, must continue to be unemployed for many months to come. The economic condition in which we find ourselves is too sustained and deeply seated to be met by pronouncements that it does not exist.

Let us face the truth – that we and the world are undergoing a major economic and business adjustment which is and will be both drastic and painful. These consequences will be particularly severe in the United States, because they will force many people to recede from the standards of living and expenditure attained during the past 14 years.

Some part of this condition is the natural consequence of the operation of basic economic laws which function with little regard for human legislation. A large part is due to mismanagement of our national affairs. A still larger part is due to a deliberately contrived and executed program which has as its object the impoverishment of the people of the United States.

The end of the World War found us with a greatly expanded industrial and credit structure, to large, by far for the requirements of our national needs as the latter existed before the beginning of the war period of abnormal consumption. It was clearly a time to halt and to analyze fundamental economic facts. We did not do this.

Rather we chose to proceed with our abnormal production and to stretch the limits of credit still further. War production and its profits had made Americans drunk with power, and ambition for more power. Luxuries developed in the disorganization of war became necessities with the reestablishment of peace.

The American peop0le entered upon a decade in which the whole structure of their lives was to be passed upon the principle of discounting the future. A vast system of installment credit sprang into life almost overnight, aided by the optimism of the Federal Reserve system. The automobile industry expanded more rapidly and to greater size than any industry had expanded in history.

The public was encouraged by advertising and propaganda to buy beyond its immediate means. Further industrial expansion was financed by the same expansion of credit which made installment buying possible. Consumption was expanded and financed upon the consumer’s promise to pay and production was expanded upon by capitalizing the producer’s hope that the consumer would keep that promise.

In the period between 1920 and the present time we experienced the full use and purpose of the credit machinery built up with the Federal Reserve system. It was but a logical development that anticipated profits should be capitalized as anticipated production and consumption had been capitalized – and that the Federal Reserve system should in turn finance tis capitalization of anticipated profits.

The entry of millions of Americans of moderate means into stock-market speculation [was] a natural consequence of the policy of expansion to which we had committed ourselves. It was also a logical development that the Federal Reserve should expand broker’s loans to make possible a huge inflation of the business of speculating in securities on margins.

All this brought the country to a point where the individual was living beyond his personal means, buying more than he could afford on his hope that he could afford to pay for it in the future and then speculating in the hope that he could make enough profit to pay his debts when they came due. In brief, the greater part of the American business structure was built upon the anticipated profits of next year’s pay checks.”

(Basis of Control of Economic Conditions, the Collective Speeches of Congressman Louis T. McFadden, Omni Press, 1970 pp. 64-66)

Congressman Louis T. McFadden of Pennsylvania was Chairman of the House Banking and Currency Committee in 1932, and a staunch opponent of the Federal Reserve. Along with Congressman Charles A. Lindbergh, Sr. he fought the Federal Reserve Act in 1913 and conducted one of the first investigations of the banking and money trust in Congress. The path to the Federal Reserve act began with Lincoln who admitted that “as a result of the war, corporations have been enthroned and an era of corruption in high places will follow and the money power of the country will endeavor to prolong its reign by working on the prejudices of the people until wealth is aggregated in the hands of a few and the Republic is destroyed.” Lincoln destroyed the Republic with war, invasion, fiat money and the marriage of business and government.

Bernhard Thuersam, www.Circa1865.com

McFadden and the Federal Reserve

“Friday, June 10, 1932

Mr. McFadden: Mr. Chairman, we have in this country one of the most corrupt institutions the world has ever known. I refer to the Federal Reserve Board and the Federal Reserve banks. The Federal Reserve Board, a Government board, has cheated the Government of the United States and the people of the United States out of enough money to pay the national debt.

This evil institution has impoverished and ruined the people of the United States; has bankrupted itself, and has practically bankrupted our Government. It has done this through the defects of the law under which it operates, through the maladministration of that law by the Federal Reserve Board, and through the corrupt practices of the moneyed vultures who control it.

Some people think the Federal Reserve Banks are United States Government institutions. They are not Government institutions. They are private credit monopolies which prey upon the people of the United States for the benefit of themselves and their foreign customers; foreign and domestic speculators and swindlers; and rich and predatory money lenders.

In that dark crew of financial pirates there are those who would cut a man’s throat to get a dollar out of his pocket; there are those who send money into States to buy votes to control our legislation; and there are those who maintain an international propaganda for the purpose of deceiving us and of wheedling us into the granting of new concessions which will permit them to cover up their past misdeeds and set again in motion their gigantic train of crime.

Those 12 credit monopolies were deceitfully and disloyally foisted upon this country by bankers who came here from Europe and who repaid us for our hospitality by undermining our American institutions. Those bankers took money out of this country to finance Japan in a war against Russia.

They created a reign of terror in Russia with our money in order to help that war along. They instigated a separate peace with Germany and Russia and thus drove a wedge between the allies in the World War. The financed Trotsky’s mass meetings of discontent and rebellion in New York. They paid Trotsky’s passage from New York to Russia so that he might assist in the destruction of the Russian Empire.

They fomented and instigated the Russian revolution and they placed a large fund of American dollars at Trotsky’s disposal in one of their branch banks in Sweden so that through him Russian homes might be thoroughly broken up and Russian children flung far and wide from their natural protectors. They have since begun the breaking up of American homes and the dispersal of American children.”

(Collective Speeches of Congressman Louis T. McFadden, Omni Press, 1970 pp. 298-299)

The victorious North installed a native proconsul in 1865 to rule North Carolina, who acceded to the various constitutional fictions emanating from the radical Northern Congress. That proconsul acted as if no military overthrow of free government had taken place in his own State, and committed treason by adhering to the enemy. North Carolina and the South were ruled by “Vichy” regimes emanating from Washington, as France later be ruled from Berlin.

Bernhard Thuersam, www.Circa1865.com

Vichy Rule in North Carolina

“In obedience to the proclamation of Provisional Governor [William] Holden, the State Convention met at noon on Monday, the 2^nd instant [2 October 1865]. The permanent President is Honorable E.G. Reade, of Person County. He is regarded as one of the best jurists in the State, was a Whig and an opponent of secession and State rights, and is now provisional judge of the eighth circuit by appointment of the Governor.

The Governor’s message came in on the second day. He takes it for granted that the Convention will recognize the abolition of slavery, provide that it shall not be re-established, and submit the amended Constitution to a vote of the people. [Governor Holden stated:]

“North Carolina attempted, in May 1861, to separate herself from the Federal Union. This attempt involved her, with other slaveholding States, in a protracted and disastrous war, the result of which was a vast expenditure of blood and treasure on her part, and the practical abolition of domestic slavery. She entered the Rebellion a slaveholding State, and emerged from it a non-slaveholding State. In other respects, so far as her existence as a State and her rights as a State are concerned, she has undergone no change.

Allow me to congratulate you, gentlemen, upon the favorable circumstances which surround you, while engaged in this great work of restoring the State to her former and natural position. It is my firm belief that the policy of the President in this respect, which is broad, as liberal, and as just as the Constitution itself, will be approved by the great body of the people of the United States . . . our State will enjoy, in common with the other States, the protection of just laws under the Constitution of our fathers.”

(The South Since the War: As Shown by Fourteen Weeks of Travel and Observation in Georgia and the Carolinas, Sidney Andrews, Ticknor and Fields, 1866, pp. 133-134)

Senator John C. Calhoun classified communities into taxpayers and tax-consumers – the former favoring lower taxes, the latter favoring increased taxes, and a wider scope of government power. He wrote of “spoils” in its narrow sense as consisting of bounties and appropriations flowing directly from the public treasury. In the wider sense, he viewed spoils as advantages derived, directly or indirectly, from government action.

Bernhard Thuersam, www.Circa1865.com

A Vigilant Corps of Government Dependents

“When [government] offices, instead of being considered as public trusts, to be conferred upon the deserving, were regarded as the spoils of victory, to be bestowed as rewards for partisan services, without respect to merit; when it came to be understood that all who hold office hold [it] by the tenure of partisan zeal and party service, it is easy to see that the certain, direct and inevitable tendency of such a state of things is to convert the entire body of those in office into corrupt and supple instruments of power, and to raise up a host of hungry, greedy, and subservient partisans, ready for every service, however base and corrupt.

Were a premium offered for the best means of extending to the utmost the power of patronage, to destroy the love of country, and to substitute a spirit of subserviency and man-worship: to encourage vice and discourage virtue, and, in a word, to prepare for the subversion of liberty and the establishment of despotism, no scheme more perfect could be devised; and such must be the tendency of the practice, with whatever intention adopted, or to whatever extent pursued.

[Add to this] the greater capacity, in proportion, on the part of government, in large communities, to seize on and corrupt all the organs of public opinion, and thus to delude and impose on the people; the greater tendency in such communities to the formation of parties on local and separate interests, resting on opposing and conflicting principles . . . Among them, the first and most powerful is that active, vigilant and well-trained corps which lives on the government, or expects to live on it, which prospers most when the revenue is greatest.

The next in order – when the government is connected with the banks, when it receives their notes in its dues, and pays them away as cash, and uses them as its depositories and fiscal agents – are the banking and other associated interests, stock-jobbers, brokers, and speculators; and which, like the other profit the more in consequence of the connection – the higher the revenue, the greater its surplus and the expenditures of the government.”

(The Life of John C. Calhoun, Gustavus M. Pinckney, Bibliolife (original 1903), excerpts, pp. 106-110)

Following the War Between the States, the freedmen were exploited by the infamous Union League to help ensure the election of Northern radical Republicans who exploited and bankrupted the exhausted South.  The emergence of the Ku Klan Klan was a predictable result.

Bernhard Thuersam, www.Circa1865.com

War of Conquest, Not Emancipation  

“Reconstruction” is a curious name to apply to the period following the war. Indeed, the war had left widespread destruction, but the government in Washington had no policy of reconstruction.  The South was left to its own economic devices, which largely amounted to being exploited by Northern interests who took advantage of cheap land, cheap labor, and readily available natural resources. This exploitation and neglect created an economic morass, the results of which endure into the twenty-first century.

Not surprisingly, governments based on the leadership of carpetbaggers, scalawags, and freedmen, groups that represented a minority of the population, met widespread and violent opposition. This attempt to create a government based on racial equality was made even more ludicrous when many of [the] Northern States rejected the Fourteenth and Fifteenth amendments to the U.S. Constitution, creating a situation where the States that said they had worked to free the slaves failed to grant equality to people of color.

(Nathan Bedford Forrest’s Escort and Staff, Michael R. Bradley, Pelican Publishing Company,

“Roosevelt the First,” as Mencken referred to Theodore, seemed unaware that his own party was responsible for the national malady he spoke against – it was the Republican Party’s marriage of government and business in the 1860s that unleashed the Gilded Age as the conservative South was no longer there to resist the government corruption and scandal. As he asserted new powers for the president, Roosevelt was creating new authority beyond what the United States Constitution confers upon the executive branch, his New Nationalism was indeed a refuge for “presidential lawbreakers.”

Bernhard Thuersam, www.Circa1865.com

Roosevelt’s “New Nationalism”

“[Former President Roosevelt] arrived in New York on June 18 [1910], after visiting courts and other interesting scenes in Europe. In all these places he received great honor, and his landing in New York called forth a demonstration worthy a world hero.

The public was curious to see whether Roosevelt would side with his old friend [William H. Taft], now the President . . . Shortly after landing he visited Taft and outwardly all seemed harmonious. In all he said openly he did not criticize Taft, but he did not abate his opposition to big business in politics.

Then suddenly he hurled a thunderbolt. Speaking on August 31 at Osawatomie, Kansas, he announced a political program, which he called “New Nationalism.” Government by the people, he said, was threatened by wealth in national politics, and the power of the nation should be so extended over it that it could not do what it is doing.

To reach this end he would give the federal government all needed power. If the Constitution was not strong enough he would amend it. He denounced what he called the “twilight zone” between federal and State authority, “a refuge for lawbreakers, and especially for lawbreakers of great wealth, who can hire the vulpine legal cunning which will teach the way to avoid both jurisdictions.”

“New Nationalism,” he added, regards the executive power as the steward of the public welfare. It demands of the judiciary that it shall be interested primarily in human welfare, rather than in property, just as it demands that the representative body shall represent all the people rather than one class or section of the people.” From the individualism of [Grover] Cleveland to the “New Nationalism” of Roosevelt was a long step.”

(Expansion and Reform, 1889-1926, John Spencer Bassett, Kennikat Press, 1971 (original 1926), pp. 175-176)

The entrance of the United States into the game of imperialism came after an unnecessary war with Spain and the seizure of the latter’s former imperial possessions of Cuba and the Philippines. The promise of independence for the natives was soon realized to be empty, and the standard procedure of installing US-friendly regimes in conquered regions began — and continues today.

As articulated below, it is worth pondering if exploitation by the dominant Tagalogs after the US military departed was worse than exploitation by American carpetbaggers. The latter believed, and still seem to believe, that all people of the world are really hard-working New England Puritans in native clothing and if taught to master the art of democratic town hall meetings they could be left alone.

Bernhard Thuersam, www.Circa1865.com

Carpetbaggers in the Philippines

“The problem of giving self-government to the Filipinos was made difficult by the existence of several distinct tribes speaking different languages and cherishing race enmities among themselves. The most important tribe was the Tagalogs, numbering 1,466,000 out of a population of nearly 8,000,000. They exceeded the others in culture and in the will to dominate the islands. If left to themselves it was believed that they would establish supremacy over the islands both political and economic. This policy has weighed down our policy in the islands.

Whatever the reasons why the United States should withdraw from the conduct of government there, it would be against the spirit of our promises to all the people if by so doing the large majority of the natives were left to the exploitation of the Tagalogs.

[In 1900], a governmental commission was appointed, with William H. Taft at the head, with instructions to introduce civil government as far and as rapidly as possible. The commission itself was at the top of the system with wide executive and law-making powers. It was directed to establish schools and create courts of justice.

Provision was made that the language of the United States should be taught in the schools, and that the officials should be taken from the natives as far as possible. These instructions were written by Secretary of War [Elihu] Root after a careful study of conditions in the Philippines.

The next step in developing government for the Philippines was McKinley appointing Taft Governor] and made him with the other members of his commission a Council to assist him in governing. At the same time three of the ablest natives were added to the membership of the Council, in which they were a minority.

Taft’s first care was to establish local self-government in the provinces . . . The suffrage for this process was awarded to persons who had held office in the islands, or owned a specified amount of property, or who spoke, read, and wrote Spanish or English. Elections were held in 1907, and the Assembly fell at once into the hands of a nationalist party.

The natives, that is, the Tagalog ruling class, were disappointed that no larger share of the government of their own country was given them, and they likened themselves to the [American] South when it was ruled by carpetbag officials from the North.

When President [Warren] Harding came into authority he sent General [Leonard] Wood and Lieutenant-Governor General Forbes to investigate and give advice on the withdrawal of the United States from the islands. They reported, in 1921, that the natives were not ready for self-government and advocated the continuance of the existing system. The natives were disappointed at the decision of the commissioners and continued to protest against the continuance of United States authority over them.”

(Expansion and Reform, 1889-1926, John Spencer Bassett, Kennikat Press, 1971 (original 1926), pp. 103-107)

The Republican Party used freedmen votes to win elections from Grant onward, though the election of Democrat Grover Cleveland demonstrated that more federal election interference in the South was needed to ensure GOP victories. Amid Republican claims that free elections were not being held in the South, Senator Zebulon Vance spoke against the Republican’s 1890 Force Bill and their assertion of electoral purity:

“[t]he supporters of this bill . . . is the same party, which inaugurated Reconstruction. By Reconstruction, it will be remembered one-fifth of the votes in eleven States was suppressed by law. The punishment of disfranchisement was freely inflicted [on Southerners] as a punishment for crime without trial and conviction. Thousands upon top of thousands of other votes were suppressed by fraud . . . [and] there were received and counted the ballots of those who were not entitled to suffrage under any law known to American history or tradition.”

Bernhard Thuersam, www.Circa1865.com

Threats of Federal Interference in Elections

“At the end of Reconstruction period the South, which had lost so much in other ways, gained in its representation in Congress through counting all the Negroes in the apportionment. In 1860 it had 108 representatives, in 1880 it had 135. In the same period the three Middle Atlantic States rose from 66 to 73, and the six New England States declined from 41 to 40.

The Southern gain worked for the advantage of the Democrats and the disadvantage of the Republicans. The Republicans, now controlling both houses of Congress, were indignant at a situation which . . . deprived them of votes in the House. This feeling led them to bring in the Federal Election Bill of 1890 . . . On its face the law applied to all parts of the country, but it was aimed mainly at the South and the city of New York.

Candid Southerners did not deny suppressing the Negro vote, but they justified it by saying a great wrong had been done when Negro suffrage was imposed on the South by military force; and they insisted it was necessary to eliminate that vote in order to have good government. Southerners gave clear warning that it would be impossible to enforce a law to put the South in the hands of the Negroes.

The bill passed the House but came to a halt in the Senate. The more it was considered the greater was the unwillingness to enter upon the stormy course its passage would produce. The proposal was finally killed by an agreement between eight free-silver Senators and a group of Southern senators.

The threat to pass the election bill alarmed Southerners greatly, and the defeat of the bill did not altogether remove their fears; for federal interference might be renewed at any time.

Another source of anxiety to the Southern Democrats was the appearance of the People’s [Populist] Party in their midst with a fair prospect of dividing the white vote. These two things led Southerners to pass certain amendments to several State constitutions, in order to exclude the Negro from voting without incurring penalties for violating the Fifteenth Amendment.

To do this it was necessary to word the alterations so that the Negro was not disenfranchised upon the specified grounds of “race, color, or previous condition of servitude,” the only grounds on which at that time the rights of suffrage might not be denied.

It was natural that these amendments should go to the Supreme Court for interpretation. But that tribunal showed a strong unwillingness to pas upon them in fact. To overthrow them would produce a critical situation in the South, where the whites were more determined that the Negroes should not rule either all or any part of the section. The Court showed a desire to avoid precipitating a sectional conflict.

Nevertheless the Fifteenth Amendment is still a part of the federal Constitution; and when the Negro race comes to have the weight of trained intelligence and the substantial possession of property, it will probably find a way to qualify and vote under the present State amendments.”

(Expansion and Reform, 1889-1926, John Spencer Bassett, Kennikat Press, 1971 (original 1926), pp. 22-24)