Circa1865

Lincoln’s war administration and deficit financing ushered in the modern American state which remains in existence today. The various Bureaus, Departments and revolutionary measures created for the purpose of increasing federal power were all linked to his total war-effort, including the restructuring of currency and banking. Author Bruce D. Porter (War and the Rise of the State, Free Press, 2002) wrote that “Appomattox thus represented not just the defeat of the South, but the defeat of the whole Southern economic and political system, and the triumph of a state-fostered industrial and financial complex in the North.”

Bernhard Thuersam, www.Circa1865.org

The True Result of Appomattox

“[in Herman Melville’s postwar] poems he recognized the tremendous costs, especially through the loss of freedom and the end of the founders’ dream for America as a result of the North’s victory. He viewed the construction of the new iron dome on the Capitol in Washington, DC, which replaced the wooden one, as a symbol of America’s future.

Bruce Porter’s well-documented study [of the war] relates some of the economic costs of the Civil War:

In connection with the war the Lincoln administration attempted to intervene in areas of the national life that the federal government had never touched before . . . Prior to 1861, the national government had been a minor purchaser in the American economy. During the war, it became the largest single purchaser in the country, a catalyst of rapid growth in key industries such as iron, textiles, shoe manufacturing, and meat packing . . .

The Civil War spawned a revolution in taxation that permanently altered the structure of American federalism and the relationship of the central government to the national economy. Prior to the war, over 80 percent of federal revenue had come from customs duties, but despite several upward revisions of the tariffs during the war, those could provide only a fraction of what was needed to sustain the union armies.

On August 5, 1861, the first income tax in US history came into effect, followed by the Internal Revenue Act of 1862, which levied a whole series of new taxes: stamp taxes, excise taxes, luxury taxes, gross receipt taxes, and inheritance tax, and value-added taxes on manufactured goods. The latter Act created the Bureau of Internal Revenue, perhaps the single most effective vehicle of federal power ever created . . .

Neither taxes nor paper dollars, however, came close to covering the enormous costs of the war. Dire fiscal straits forced the federal government to borrow over 80 percent of its cost, or more than $2.6 billion. [The] Lincoln administration created a captive source of credit by granting a monopoly on issuance of the new national currency to banks that agreed to purchase large quantities of federal bonds . . . [and] agree to accept federal regulation and federal charters. Thus, almost overnight, a national banking system came into being.

[Author] Eric Foner writes that the fiscal measures represented in their “unprecedented expansion of federal power . . . what might be called the birth of the modern American state . . .”

(The Costs of War, America’s Pyrrhic Victories, John V. Denson, Transaction Publishers, 1999, excerpts pp. 28-29)

Kentucky Governor Beriah Magoffin replied to Lincoln’s illegal request for troops in April 1861 with “I will send not a man nor a dollar for the wicked purpose of subduing my sister Southern States.” His State government tried in vain to maintain neutrality while he personally championed a peaceful settlement between North and South, and acceptance of the Crittenden Compromise proposed by fellow Kentuckian, John J. Crittenden. With the increasing number of Northern troops in his State and the consequent political intimidation, he was forced from office in favor of a Lincoln-appointed military proconsul.  By waging war against a State and adhering to its enemies, Lincoln committed treason as defined in Article III, Section 3 of the United States Constitution.

Bernhard Thuersam, www.Circa1865.org

Kentucky’s Vichy Government

“On August 18, 1861, a meeting was held in Scott County, Ky., of a number of prominent Democrats; and after a full discussion of the situation, it was determined to send commissioners to Washington and Richmond, with a view to ascertaining, if possible, whether the neutrality of Kentucky would be respected by both sides.

Upon the recommendations of this conference, Governor Magoffin appointed Frank K. Hunt and W.A. Dudley, both Union men, as commissioners to Washington, and George W. Johnson commissioner to Richmond.

In the letter to President [Jefferson] Davis sent in response to that written him by Governor Magoffin, an borne by Mr. Johnson, appears the following language, which certainly very logically and properly summed up the situation:

“The government of the Confederate States has not only respected most scrupulously the neutrality of Kentucky, but has continued to maintain the friendly relation of trade and intercourse which it has suspended with the United States generally. But neutrality, to be entitled to respect, must be strictly maintained by both parties . . .”

Mr. Lincoln replied that he did not believe that it was “the popular wish of Kentucky that the Federal force already there should be removed, and with this impression I must decline to remove it.”

This declaration made it plain to men of all shades of political opinion in Kentucky that the occupation of the State by Federal troops would be continued, and that their number would be increased, not only to completely suppress any sentiment in favor of the Confederacy and action taken in that behalf, but in order to make Kentucky a base of military operations against the States further South.

In a very short time after this declaration by Mr. Lincoln, numerous arrests were made of Kentuckians of known Southern sympathies, or of prominent men who ventured even to question the legality of the aggressive acts committed by Union leaders.

George W. Johnson was one of the first and boldest to denounce such tyranny. He escaped arrest by quitting his home and seeking the Tennessee border within a few hours before the soldiers who were ordered to make him a prisoner arrived at his house.”

(Reminiscences of General Basil W. Duke, CSA, Cooper Square Press, 2001 (original 1911), excerpts, pp. 148-149)

In late February 1862, Yankee slaver trader Nathaniel Gordon of Portland, Maine, was hung in the stone courtyard of the Tombs, in New York City, convicted of “piratically confining and detaining Negroes with the intent of making them slaves.” Ironically, New York’s own Declaration of Independence signer, Phillip Livingston, made his own vast fortune in the slave trade, as did many other New Englanders. A further irony is that soon Lincoln would be formulating a plan to foment race war in the American South, replicating the emancipation edicts of Royal Governor Lord Dunmore in 1775, and Vice Admiral Alexander Cochrane in 1814. It was England and New England that brought shiploads of enslaved Africans to work Southern and South American plantations, and both would later demand liberty and the rights of man for those they had placed in bondage. See: Hanging Captain Gordon, Ron Soodalter, 2006 for deeper reading.

Bernhard Thuersam, www.Circa1865.org

Yankee Slave Trader Gordon

“In November 1861 a Yankee slave trader was captured on the high seas with a boat load of slaves bound for the West Indies. Trading in slaves had been illegal for years, although the New England slave ships had been carrying on clandestine slave trading with considerable success for Cuba and Brazil but not the South, which was not interested.

It is commonly but erroneously assumed that slave trading was a Southern occupation, but in fact almost all slave trading, when it was legal and later illegal, was from ships of New England registry with Northern crews.

The Yankee slave trader Nathaniel Gordon, who was originally from Maine, was tried before a federal judge in New York and sentenced to be hanged on 7 February 1862. It was the first and only time such a sentence was handed down and carried out.

Realizing the undue harshness of the sentence, 25,000 New Yorkers petitioned Lincoln to commute Gordon’ sentence to one of life imprisonment. There was nothing to be lost by Lincoln doing this, but Lincoln refused to commute the sentence. (Later, when another slave trader was caught, Lincoln went to the other extreme and granted a pardon).

There were many vociferous abolitionists who called for the hanging to be carried out, and Lincoln yielded to their demands. He did, however, grant a cruel delay of thirteen days so that the execution would not take place until 20 February. Lincoln explained his course of action in these words: “In granting this respite [thirteen days] it becomes my painful duty to admonish the prisoner that relinquishing all expectation of pardon by human authority, he refer himself alone to the mercy of the common God and Father of all men.”

It would seem that mercy from God, to be realistic, would have to come through men, and in this case, Lincoln. Where was the “mercy of the common God” when Lincoln had him hanging from a rope until dead? What is the logic of this cruelty?”

(When in the Course of Human Events, Arguing the Case for Secession, Charles Adams, Rowman & Littlefield Publishers, Inc., 2000, excerpts pp. 209-210)

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

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

Bernhard Thuersam, www.Circa1865.org

Immigrant Politics and Recruits Up North

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

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

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

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

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

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

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

The war of 1861-1865 seemed a violent replay of the 1800 election between Federalist John Adams and Republican Thomas Jefferson – and settling the question of whether New England or Virginia would dominate and guide the country. Author Russell Kirk observed in 1953 that “The influence of the Virginia mind upon American politics expired in the Civil War,” and that it would take 100 years for the ideas of a limited central government and free market ideas to begin a recovery.

Bernhard Thuersam, www.Circa1865.org

Constitutional Convention on the Battlefield

“Beginning with the modern civil-rights movement in the late 1950s, it became popular and “politically correct” to proclaim that the Civil War was fought for the purpose of abolishing slavery and therefore was a just and great war. This gave the civil-rights movement much of its momentum, but it also served to injure race relations severely, and further, to mask the immense and disastrous costs of the Civil War, which included the deaths of 620,000 soldiers.

The destruction of the South and its Jeffersonian ideals of a free market, a non-interventionist foreign policy, and a limited central government were replaced by the ideals of Hamilton, thereby completely transforming the American government created by its founders.

The Civil War was, in effect, a new constitutional convention held on the battlefield, and the original document was drastically amended by force in order to have a strong centralized federal government, which was closely allied with industry in the North.

Foreign policy would now become heavily influenced by the economic interests of big business rather than by any concern for the freedom of the individual. Domestic policies of regulation, subsidy and tariff would now benefit big business at the expense of small business and the general population.

Beginning with the end of the Civil War, the American mind and policy would become molded into the image of Hamilton rather than Jefferson.”

(The Costs of War: America’s Pyrrhic Victories, John V. Denson, editor, 1999, Transaction Publishers, 1999, excerpts pp. 27-28)

In mid-July of 1864, opposition to Lincoln’s oppressive regime made him see his reelection as improbable, despite offering prestigious governmental posts to newspaper opponents. Even Thurlow Week, recognized as a great political seer in New York, told Lincoln in early August 1864 “that his reelection was an impossibility.” Though Lincoln’s faction-ridden party was collapsing in the face of McClellan’s candidacy and wide support, the War Department’s manipulation of the soldier vote, and monitored election polls, resulted in Lincoln’s victory.

Bernhard Thuersam, www.Circa1865.org

Havoc in 1864 New York City

“Francis P. Blair, Lincoln’s friend, support and father of Montgomery Blair, the postmaster general, went to New York City in the hope of waylaying [General George B.] McClellan’s [presidential] candidacy. [Publisher] James Gordon Bennett . . . advised Blair, “Tell him [Lincoln] to restore McClellan to the army and he will carry the election by default.”

The month of August 1864 was so depressing for the Republicans that the Democrats had good reason to dream of glory. [Former New York City Mayor] Fernando Wood . . . had said “that the national [Democratic Party] was unqualifiedly opposed to the further prosecution of the war of emancipation and extermination now being waged against the seceded States, and will continue to demand negotiation, reconciliation and peace.”

The more moderate August Belmont sounded no less harsh when he addressed the Chicago convention. “Four years of misrule,” he said, “by a sectional, fanatical and corrupt party have brought our country to the very verge of ruin.” Four more years of Lincoln would bring “utter disintegration of our whole political and social system amidst bloodshed and anarchy.”

Also in August the Confederates dealt a demoralizing blow to New York City. The Confederate steamer Tallahassee audaciously captured two Sandy Hook pilot boats off New York Harbor, bringing the war close to home. The rebel ship laid in wait for outbound vessels and in less than two weeks, according to official records, destroyed or damaged more than thirty ships. Some estimates ran as high as fifty-four ships destroyed, and insurance men shivered over the consequences.

John Taylor Wood, grandson of President Zachary Taylor and captain of the Tallahassee . . . longed to create havoc in New York. He knew which ships were in port from newspapers he had taken from captured ships, and he hoped to set fire to the ships in the harbor, blast the navy yard in Brooklyn, and then escape into Long Island Sound.

During these unpleasant days, [Lincoln] called for five hundred thousand more men for the army. [This] prompted John Mullaly to publish an article called “The Coming Draft” in his paper . . . which resulted in his arrest for counseling Governor Seymour and others to resist the draft. [Mullaly] . . . continued to express his belief that the South had the right to select its own government and that the North “in the endeavor to force her into a compulsory Union is violating the principle of universal suffrage, which we claim to be the foundation of our democratic system. By this right we shall continue to stand, for it is a right older and more valuable than the Union itself.”

(The Civil War and New York City, Ernest A. McKay, Syracuse University Press, 1990, excerpts pp. 269-270; 272-273)

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

Bernhard Thuersam, www.Circa1865.org

Recruiting Lincoln’s Sable Arm

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

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

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

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

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

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

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

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

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

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

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

Though opposed to secession while president, though admitting the Constitution gave him no authority to wage war upon a State, James Buchanan nonetheless saw little reason for the needless slaughter of Americans on both sides. Though desiring a reunited country, he should have wondered by 1864 how the Southern people could reconcile the brutality, savagery and wanton destruction caused by the Northern invasion.

Bernhard Thuersam, www.Circa1865.org

Buchanan Identifies the Reason for War

“But Buchanan, like many of the peace Democrats, disapproved of abolitionists and the policy of emancipation. (He later stated that he delayed becoming a member of the Presbyterian Church until after the war because of the anti-slavery stand of the Northern wing of that church).

The Emancipation Proclamation, he asserted in 1864, demonstrated that “the [Lincoln] administration, departing from the principle of conducting the war for the restoration of the Union as it was, and the Constitution as it is, had resolved to conduct it for the subjugation of the Southern States and the destruction of slavery.

Buchanan had taken a firm stand against the discussion of peace proposals with the Confederacy; as the years passed, however, without modifying his demand that the Union must be preserved, he expressed approval of negotiations with the South.

After the reelection of Lincoln in 1864, (Buchanan had supported McClellan), he urged conciliation based on ignoring the slavery issue. “Now”, he wrote in November 1864: “would be the time for conciliation on the part of Mr. Lincoln. A frank and manly offer to the Confederates that they might return to the Union just as they were before they left it, leaving the slavery issue to settle itself, might be accepted.”

Buchanan spent much of his time during the war in preparing a defense of his actions as President . . . He was unfailingly critical of secessionism . . . But the basic cause of the sectional struggle and war was in operation long before 1860, and Buchanan insisted that this basic cause was not the institution of slavery or any other difference between North and South, but the agitation over slavery.

[Buchanan] always placed primary blame [for war] upon the Northern abolitionists. The original cause of all the country’s troubles, he wrote, was to be found in:

“[The] long, active and persistent hostility of the Northern Abolitionists, both in and out of Congress, against Southern slavery, until the final triumph of their cause in the election of President Lincoln . . .”

If there had been no opposition to slavery, was the theme of Buchanan’s reasoning, there would have been no sectional conflict or war.”

(Americans Interpret their Civil War, Thomas J. Pressly, Collier-MacMillan Company, 1954, excerpts pp. 140-141)

Charles A. Dana is a seldom mentioned figure in wartime incidents, though he became an internal spy for Secretary of War Edwin Stanton and monitored Grant’s early activities in the western theater of war. When Jefferson Davis was placed in irons in Fortress Monroe, it was Dana who wrote the order. In the prewar period, Dana was a member of the utopian Brook Farm commune in Massachusetts, and encouraged Karl Marx to contribute to Horace Greeley’s Tribune. Dana later admitted that the entire power of the War Department was utilized to ensure Lincoln’s reelection in 1864.

Bernhard Thuersam, www.Circa1865.org

Fake News and Collusion

“White-haired and long faced, [Secretary of War Simon] Cameron was turning army procurement into a fish fry for manufacturers of his native Pennsylvania. Not a word of criticism, however, came from the [New York] Tribune, normally freighted to the water’s edge with brickbats for public officials suspected of mischief . . . Part [of editor Horace Greeley’s reason] was due to the fact that Cameron, in an early draft, proposed a favorite Greeley scheme of arming escaped slaves.

Part of it, however, mirrored the touching understanding between the war minister and his favorite news-gatherer [the Tribune’s Samuel Wilkeson]. Wilkeson would send Cameron a clipping of one of his more flattering articles on the existing management of the war, and
Cameron would respond in a way that counted, by dropping a note to the telegraph censor and requesting that Wilkeson’s dispatches be sent through untouched.

[The] New York Herald ferretted out of an investigation of Cameron’s contracts a story which charged the Washington correspondent and two of the Tribune’s commercial and financial writers had secured the charter of a Connecticut gun manufacturer and submitted a bid to supply the government with 25,000 muskets at twenty dollars apiece.

Wilkeson (whose name was twisted by the Herald to Wilkinson) had supposedly used his influence to have the Ordnance Department hurry matters along. The Tribune denied that any of its men had owned any part of the contract in question; Wilkeson admitted to an act of “disinterested kindness” and nothing more, but soon thereafter left Washington for the army.

[Cameron in January 1862 was replaced with Edwin M.] Stanton, [and who] almost as soon as he was installed at his desk, wrote to Charles A. Dana, the managing editor, confiding that his mission tended toward the same end as that of the paper.

In an early entanglement over a censored dispatch Stanton admitted that he and Dana were of “one heart and mind” in the cause of victory. He meant it, apparently, for Dana subsequently left Greeley’s payroll and, under the title of Assistant Secretary of War, ventured afield to keep an eye on various headquarters for Stanton.”

(Reporters for the Union, Bernard A. Weisberger, Little, Brown and Company, 1953, excerpts pp. 175-178)

As Lincoln prepared his invasion of the South after Fort Sumter, he responded to public outcry in Maryland with illegally suspending the right of habeas corpus, increasingly severe repression, and monitoring elections. The author below writes that Lincoln’s “clumsy response is better explained by psychological impulse than by political imperative,” as he could not abide having dissident Maryland citizens waving Southern banners so close to his political seat.

Bernhard Thuersam  www.Circa1865.org

Martial Law in Maryland

“[General Winfield] Scott . . . [issued the order] for the arrest of Baltimore’s city marshal, George P. Kane, and the entire board of police commissioners – all of whom [were] implicated in the imagined [Maryland secession] plot.

So it was that at an early hour on June 27, 1861, a detachment of troops marched through Baltimore’s streets . . . [to] Marshal Kane’s home. Within the hour Kane arrived at Fort McHenry . . . When the sun rose over the Eastern Shore on July 1, all four commissioners lay in the dank dungeon of Fort McHenry . . . Soldiers by the hundreds strode Baltimore’s streets with their bayonets fixed that morning, and citizens who dared to express disagreement with their government felt the teeth of martial law.

The United States Congress convened three days after the arrest of the commissioners and questioned the seemingly highhanded action taken against public officials of a loyal State. Knowing that Lincoln had already ignored judicial demands in such matters, the police commissioners bypassed the legal system to petition their congressional representative for relief, and twenty days into its session the House of Representatives adopted resolution requesting [Lincoln] to provide grounds and evidence for the arrests.

Lincoln declined to cooperate. Citing what would become the favorite excuse of future administrations seeking to invoke a dubious prerogative, he informed the elected representatives of the people that it was “incompatible with the public interest at this time” to release that information.

Some of the commissioners remained in confinement for months, and Marshal Kane was not released until November of 1862, but for the rest of the war and thereafter, revealing the reason for their detention remained incompatible with the public interest.”

(Mr. Lincoln Goes to War, William Marvel, Houghton Mifflin, 2006, excerpts pp. 104-105)