Circa1865

As of April 24, 1863, the Northern armies were officially guided by Francis Lieber’s General Orders 100, Instructions for the Government of Armies of the United States in the Field, which prohibited robbery, sacking, pillage rape, wounding maiming or killing of the South’s inhabitants. Observance of these instructions seemed to be the exception rather than the rule.

Bernhard Thuersam, www.Circa1865.com

From William Sherman to William Calley

“Paradoxically . . . Union General William Tecumseh Sherman [gradually] evolved his own personal philosophy of war along lines which were clearly at variance with the official pronouncements [of the North’s and in his practical application of that philosophy became one of the first of the modern generals to revert to the use of military force against the civilian population of the enemy.

While this represents only a part of the present concept of total war, its significance lies in Sherman’s demonstration of the effectiveness of a plan of action which would destroy the enemy’s economic system and terrify and demoralize the civilian population.

Sherman’s conduct, reflected in the actions of his men, demonstrated a strange hatred – one without parallel even in World War II. Even as brutal as the Japanese were to prisoners and to civilians who came under their bayonets, there was no demand in United States newspapers for the burning, sacking and pillaging of towns. Nor was there any public sentiment for the humiliation of civilians.

No efforts are made here to show that Sherman’s program pf terror was original with him. It is evident that he was willing to proceed in the face of official pronouncements to the contrary to apply the terrifying force of an uncontrolled soldiery against noncombatants.

It is likewise evident that he would not dared do so without the tacit approval of Abraham Lincoln and General Grant. Sherman pleaded that he could no control his troops in the face of their righteous indignation against those who would rebel against a benign government. The pages of recent history reveal that this plea was reiterated by both Japanese and German generals as the mounted the steps of scaffolds to which they were condemned by international tribunals.

There were extreme and unnecessary cruelties involving civilians in the Korean action. However, it was in the highly dramatic court martial of Lt. [William] Calley that the army undertook to point up the brutal attack upon civilians in the village of My Lai, South Vietnam.

The nation and the world was shocked at the pictures and detailed accounts of witnesses which placed upon the consciences of people everywhere the details of the massacre of the inhabitants, including women and children, of My Lai.

There can be little doubt that Sherman’s actions toward a proud and almost defenseless people left a heritage of hate which lasted far longer than it might otherwise have lasted.”

(Merchant of Terror: General Sherman and Total War; John Bennett Walters, Bobbs-Merrill Company, 1973, excerpt, pp. xxii-xxiii)

In his May 1, 1861 message to the North Carolina General Assembly, Governor John Ellis of referred to the “Northern Government” and that “they have drawn the sword against us and are now seeking our blood. They have promised to partition our property and the earnings of our people among the mercenary soldiers after our subjugation shall be effected. All fraternity of feeling is lost between us and them. We can no longer live with them. There must be a separation at once and forever.”

Bernhard Thuersam, www.Circa1865.com

“In Defense of Their Traditional Liberties”

“Although North Carolina had soon after the adoption of the Federal constitution taken steps to prevent the importation of Negroes, not only from abroad but from any other State, yet in the progress of time the system of slavery became strongly engrafted on her social structure, and the agitation of slavery question excited her people greatly.

Periodically this agitation stirred the people and animated them to maintain with steadfastness the right to manage their own domestic, local concerns in their own way.

At length when it was declared that an “irrepressible conflict” had arisen, and that the “Union could not exist half slave and half free,” it came to be regarded that the limitations of the Federal constitution were no longer to be observed, and that the abolition party would seek to abolish slavery. This led South Carolina and other commonwealths to the South to withdraw from the Union.

The question of holding a convention for the purpose of withdrawing was submitted to the people of North Carolina in the spring of 1861, but so conservative were they and so attached to the Union, that they separated themselves from their Southern brethren and refused to call the convention. The difference between the votes was, however, small — only about 250 in the poll of the entire State.

Such was the situation, when in April 1861, Fort Sumter was bombarded and President Lincoln called on North Carolina to furnish her quota of troops to coerce the seceding States. These events changed the aspect of affairs in North Carolina instantaneously. All differences ceased.

Union men, who, like George E. Badger, did not hold to the right of secession, united now in the declaration that North Carolinians must [now] share in the fortunes of their Southern kindred. Then amid the excitement of that period came the rapid preparations for the inevitable conflict — the marshaling of troops, the formation of armies, the strenuous endeavors to equip and maintain our citizen [soldiers] and make defense of our unprotected coast.

Never was there a finer display of patriotic ardor; never did peaceable ploughboys more quickly assume the character of veteran soldiers. It was if a common inspiration possessed the souls of all the people and animated them to die, if need be, in defense of their traditional liberties.

During the four years of strife that followed, the people of North Carolina bore themselves with an unparalleled heroism. With a voting population of 112,000, North Carolina sent to the army 125,000 soldiers.

Strenuous efforts were made to provide food for the soldiers and the poor, and while salt works were erected along the sea coast, vast quantities of cards were imported for the women to use at home, and other supplies were brought through the blockade.

[Life then] was accompanied, however, by straits and hardships, suffering and mourning, the separation from husbands and fathers from their families and the pall of death that fell upon every household. What awful experiences were crowded into four years of heroic and grand sacrifice — how trying the vicissitudes, how calamitous the dire result!”

(Cyclopedia of Eminent and Representative Men of the Carolinas of the 19^th Century, Volume II, Brant & Fuller, 1892, pp. 35-36)

Sherman’s army occupied Savannah in late December, 1864 after Gen. William J. Hardee had evacuated his troops into South Carolina. Offshore and awaiting the occupation of the city by Sherman were US Treasury agents and others anxious to seize bales of cotton and other valuables for government or personal enrichment. In addition, presidential-aspirant Edwin M. Stanton presciently coveted the Negro vote in the South as Grant eventually did, and pretended concern for their future.

Bernhard Thuersam, www.Circa1865.com

Grabbing Pennies Off the Southern Corpse

“In making the rounds of the city [in late December, 1864, Sherman] was irritated to find that an agent of the [US] Treasury had arrived in the city ahead of him and seized a large stock of cotton there, estimated at 25,000 bales, later found to amount to 31,000 bales.

His chief annoyance . . . was from outside meddlers, agents from the North, the forerunners of the pestiferous army of carpetbaggers that swarmed into the South in the next few months and years. Some were sincere and fervent, but narrow-minded, zealots determined to impose salvation as decreed by the abolitionists upon the Negroes; many were greedy and unconscionable rascals bent upon seizing political power and grabbing the pennies off the Southern corpse.

[Sherman] . . . divined the developing purpose of the Radicals in Congress. It became apparent in the attitude suggested in hints let out here and there by the chief of the northern agents who descended upon Savannah while Sherman was there.

This was none other than Secretary of War Stanton, who hurried down by boat at the first opportunity to look the ground over. Stanton was fussy about many things, peeking here and there, prying, asking questions, seemingly deeply concerned about the Negro and his future, but in reality carefully measuring the political potentialities in this Southern tragedy, thus foretelling his action, a few months later, in joining the Radicals openly in their desperate and vicious Reconstruction program.

Sherman was most resentful when Stanton revealed his intention to quiz the Negroes about [Sherman’s] own policies . . . [and] witnesses upheld Sherman also in the firm policy he had adopted against recruiting Negroes for his army by State agents who rushed into Savannah and were trying to enlist Negroes right and left.

[Sherman] did not want to enlist any Negro soldiers, not only because of the bother of handling such unseasoned troops, but also because he had smarted under the taunts of Confederate General [John B.] Hood at Atlanta to the effect that the North had to use the South’s own Negro slaves to defeat the Confederacy.”

(The Savannah, More Than the Story of a River, Thomas L. Stokes, University of Georgia Press, 1951, excerpt, pp. 285-288)

As the Northern armies spread across the Confederacy, newspaper reporters following them sent observations and stories northward. The result was predictable as they wrote of an evil land and emphasized any unfavorable aspects of Southern civilization. In the last year of war, the United States government refused prisoner exchanges while Jefferson Davis and Robert E. Lee pleaded in vain for the starving men in blue held in Southern prisoner of war camps to be saved by their own leaders.

Bernhard Thuersam, www.Circa1865.com

Shaping Northern Opinion Against the South

“[The] years from 1865 to 1880 were dreary years in which there was no peace. The war had only ended on the battlefield. In the minds of men it still persisted. Memories of the past and issues living in the present combined to perpetuate and perhaps enlarge the antagonism that victory and defeat created. One observer made the comment that “it was useless to preach forgiveness and good will to men still burning with the memory of their wrongs.”

Deeply [engraved] on the Northern heart was the conviction that the Confederacy had deliberately mistreated the prisoners of war captured by its armies. The Southern prisons . . . were at best what one Confederate surgeon described as a “gigantic mass of human misery.”

A war-crazed [Northern] public could not dissociate this suffering from deliberate intent of the enemy. Rather it fitted the purposes of propaganda to attribute the barest motives to the Confederates [that] “there was a fixed determination on the part of the rebels to kill the Union soldiers who fell into their hands.” The great non-governmental agencies of relief and propaganda contributed to the spread of similar impressions.

Northern opinion was thus rigidly shaped in the belief that “tens of thousands of national soldiers . . . were deliberately shot to death, as at Fort Pillow, or frozen to death as at Belle Island, or starved to death as at Andersonville, or sickened to death by swamp malaria, as in South Carolina.”

Horror passed into fury and fury into a demand for revenge. And the arch-fiend of iniquity, for so the North regarded him, Major Henry Wirz, was hanged as a murderer [in November 1865] . . . he was the scapegoat upon whom centered the full force of Northern wrath.

Meanwhile the South had no effective way of meeting these charges of brutality [though] it is not difficult to find, however, material in these years that the South received the Northern charge with sullen hatred.

Typical is an article contributed to the Southern Review in January 1867:

“The impartial times to come will hardly understand how a nation, which not only permitted but encouraged its government to declare medicines and surgical instruments contraband of war, and to destroy by fire and sword the habitations and food of noncombatants, as well as the fruits of the earth and the implements of tillage, should afterwards have clamored for the blood of captive enemies, because they did not feed their prisoners out of their own starvation and heal them in their succorless hospitals.

And when a final and accurate development shall have been made of the facts connected with the exchange of prisoners between the belligerents, and it shall have been demonstrated . . . that all the nameless horrors [of both sides] were the result of a deliberate and inexorable policy of non-exchange on the part of the United States, founded on an equally deliberate calculation of their ability to furnish a greater mass of humanity than the Confederacy could afford for starvation and the shambles, men will wonder how it was that a people, passing for civilized and Christian, should have consigned Jefferson Davis to a cell, while they tolerated Edwin M. Stanton as a cabinet minister.”

(The Road to Reunion, 1865-1900, Paul H. Buck, Little, Brown and Company, 1937, excerpts, pp. 45-48)

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

Bernhard Thuersam, www.Circa1865.com

Lincoln’s Inflationary Finances

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

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

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

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

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

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

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

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

Abraham Lincoln was a devotee of the Alexander Hamilton/Henry Clay “American System” of public debt, tariff protectionism, government subsidies and a national bank. To finance his war in 1861, Lincoln turned to an income tax, and then succumbed to printing money. Nowhere in the United States Constitution is the federal government authorized to make paper money legal tender. By 1865, the public debt was $2.6 billion, and the direct/indirect cost of Lincoln’s war would reach $8 billion by 1900.

www.Bernhard Thuersam, www.Circa1865.com

Public Debt, Then and Now

“Contrary to official capitalist wisdom, debt does not create economic growth. This idea is a swindle. Interest to the very rich . . . does not produce anything. It does not multiply creatively into new enterprises and jobs; it merely diverts ever-greater proportions of earning that might be fruitfully invested.

The proof is all around us. How could the vast unpayable federal debt, which absorbs much of the government’s income just for the interest bondholders, foreign and domestic, possibly be an economic stimulus? How can the immense and near universal burden of personal mortgage and credit card debt possibly indicate a healthy economy and commonwealth?

The matter is simple, obvious to anybody except a politician, a captive economist, or a media flack, and it ought to be conveyed to the people at every opportunity. Debt is killing us. Every wise man in recorded history has affirmed that debt is not a good thing. Debt can destroy a family, a government, a society.

Alexander Hamilton, an upwardly mobile immigrant bastard with a Napoleon complex, declared that “a public debt is a public blessing.” Troubled, but not surprised, Jefferson noted a connection between debt cruel taxation that undermined the independence of the citizens, warning that “we must not let our rulers load us with perpetual debt.”

Weighed down by government debt, the people would have to labor ever harder to pay the debt-holders, leaving them “no time to think, no means of calling the managers to account.” Jefferson avowed as a core principle that “the earth belongs in usufruct to the living,” but the living had no right to consume the earnings of posterity.

Antebellum statesmen like John Taylor of Caroline and John C. Calhoun and economists like William Gouge and Condy Rageut made the same case. After the War Between the States, so did William Graham Sumner, Thomas E. Watson and countless other public men and thinkers.

Republicans (and their predecessors) have always been the party of bankers and bondholders, service to the rich being for them a natural and essential function of the federal government. Opposition to the federal debt was long a plank in the Democratic platform, but Democrats today are just as guilty as the Republicans in regard to the issue.

Lip service to the virtue of “low public debt” continued until Franklin Roosevelt discovered Keynes and declared that debt is no problem “because we owe it to ourselves” – “ourselves” being a conveniently vague and collective being.

The bipartisan bailout of misbehaving bankers and brokers that we saw a few years ago, and the failure of a multitude of presidential candidates to mention the matter, is not promising.”

(It’s the Debt, Stupid, Clyde N. Wilson, Chronicles, February 2016, excerpt pg. 16)

April, 1865 witnessed the victory of Northern industrial capitalism over the conservative, agrarian South – no longer could Southern statesmen restrain the North in the halls of Congress. Post-1865 America saw the rise of corporations, the completion of Manifest Destiny and near-extermination of the Indians, and the gilded age of “evil robber barons.”

Bernhard Thuersam, www.Circa1865.com

Unproductive Republican Economic Policies

“Historians have tended to treat the Civil War as a boon to industry and the American economy. Thomas C. Cochrane cites several prominent historians . . . who variously praised the impact of the conflict on wartime production and its stimulating effect on postwar economic and industrial development.

Cochrane . . . examined statistical data on industrial production and found that, in general, there was not a strong case for a positive impact and that the war had a retarding effect on industry and the economy. Cochrane also found little support for the claims of beneficial effects of the Civil War on postwar development. He concludes with this speculation:

“From most standpoints the Civil War was a national disaster, but Americans like to see their history in terms of optimism and progress. Perhaps the war was put in a perspective suited to the culture by seeing it as good because in addition to achieving freedom for the Negro it brought about industrial progress.”

[Charles and Mary] Beard’s claim that the Civil War was a spur to industry and the rise of the American economy is based on the lasses-faire philosophy of the Republican Party and its success in implementing its major policy goals, such as subsidies to the intercontinental railroads, the establishment of a national currency and the protective tariff.

The Republican’s economic philosophy was not truly laissez-fair. In fact, their policy agenda was the opposite . . . in that it advocated special treatment for big business and a much larger role for the federal government. This can be seen in Republican policies to subsidize railroads, provide protective tariffs [for select private industries], and increase government debt and government control over money and banking as well as in their attitude toward labor.

Their policies [of tariffs and subsidies] . . . are now considered economically wasteful . . . and considered nothing more than special interests seeking a handout from the taxpayer through the government. [That Republican policies were productive] ignores the negative effects on the agriculture, service and cultural sectors. The Republicans’ policy would be better labelled as mercantilist in that it facilitated rent-seeking behavior.

Capital diverted to railroad building would surely have been put to good use elsewhere in the economy . . . [and] Moreover, had railroads not been highly subsidized, a better built, lower cost, and more timely system could have been put in place.

Tariffs were a centerpiece of Republican policy. They reversed a relatively free-trade policy . . . [and] protectionism forced consumers to pay higher prices for both imported and domestically produced goods protected by the tariff – that is, they purchased fewer of these products, used less desirable substitutes, and had a lower standard of living.

On net, the losses to consumers and the overall economy are greater than the gains to the protected producers and the tax revenue that accrues to the government.”

(Tariffs, Blockades and Inflation, the Economics of the Civil War; Mark Thornton and Robert B. Ekelund, Jr., Scholarly Resources Books, 2004, excerpts, pp. 84-87)

Though Northern General David Birney was born in Alabama, his Kentucky abolitionist father moved the family to Philadelphia where he was educated and indoctrinated. A thoroughly political general who rose through the ranks by self-promotion and connections, his career was dotted with discipline issues and courts martial. He was described as a “pale, Puritanical figure, with a demeanor of unmovable coldness . . .” He ordered the indiscriminate bombardment of women, children and old men in mid-1864 Petersburg, which offered no military targets.

Bernhard Thuersam, www.Circa1865.com

Our Inhuman Foe

“The war against the civilian population of the Cockade City began in earnest on June 16. The 10^th Massachusetts Battery took an advanced position near the Hare House Hill, from which, one artilleryman later recalled, the “spires of Petersburg were now in full view, though distant, perhaps, two miles.”

Two days of bitter fighting remained before the Union leaders would admit failure in their attempt to storm Petersburg, but the targeting of noncombatants did not wait that long. “By order of Gen. Birney we gave our pieces ample elevation and fired the first shots known to have been thrown into the city,” cannoneer John D. Billings noted.

“What a night was the last,” Fanny Waddell wrote the next morning. “Our inhuman foe without a single warning opened their guns upon us, shelling a city full of defenseless women, children and old men.” The bombardment that began on June 16 lasted well into the early hours of June 17.

“I lay quietly until nearly one o’clock listening the bursting of the shells when one exploded so near that the light flashed in my face,” Mrs. Waddell recollected. Ah! The bitterness of that night will never pass from our hearts and memories.”

The correspondent for the Savannah Republican reported on June 19 that a “number of shells have exploded in the streets [of Petersburg], but thus far only eleven persons have been hurt, including one old Negro woman killed.”

An officer visiting Petersburg shortly after this report was filed thought that everything seemed “exceedingly depressing. The streets were almost deserted, and the destructive work of the shells was visible on every hand. Here a chimney was knocked off, here a handsome residence was deserted, with great rents in its walls, and the windows shattered by explosion; here stood a church tower mutilated, the church yard filled with new-made graves.”

Large numbers of civilians fled the Petersburg battle zone within days of Grant’s approach. James Albright, a Virginia artilleryman, wrote in his diary on June 20, “The vandals are still throwing shells into the city, and it is very distressing to see the poor women and children leaving. It is hard on all; but to see the poor women with the children on one arm and their little budgets on the other seeking a safe place – is enough to move the hardest heart.”

The civilian exodus was accelerated by rumors that the Yankees planned to celebrate the Fourth of July with “a furious bombardment of the City.” Another Petersburg diarist noted that during one bombardment “pieces of shell [were] rattling like hail about our house.” There were so many burning structures that one Southern artilleryman angrily declared that the “Yankees appear[ed] to be throwing incendiary shells into the city – as some five buildings were on fire at the same time.”

At least one Union battery did use Petersburg to test its homemade incendiary shells. These were concocted by Major Jacob Roemer and thrown into the city in late July, doing “a great deal of damage there.” Another heavy Union bombardment on July 28 started a number of blazes, all noted by Union observers.

To add to the fire hazard, the Union artillery would concentrate its shelling on the burning structures, so that the air around the men battling the flames would be filled with a “perfect storm of shot and shell.”

(The Last Citadel, Petersburg, Virginia, June 1864-April 1865, Noah Andre Trudeau, Little, Brown and Company, 1991, excerpts pp. 91-92; 95-96)

The departure of Southern States from the fraternal Union came as no surprise to many, and those like Alexander H. Stephens of Georgia forecast disunion to President James Buchanan if he would not end his warfare with Stephen Douglas. Noting the refusal of Republicans to compromise and not wanting to return to Congress to witness the death of the Union, Stephens returned Georgia to await the unfolding events.

Bernhard Thuersam, www.Circa1865.com

Striving to Maintain the Union

“The [Cincinnati] speech was intended as a solemn warning not only to his constituents and people of the South, but the whole country, that in his opinion the peace and prosperity of the country depended upon a strict and inflexible adherence to the principles of the adjustment measures of 1850 upon the subject of slavery, as carried out and expressed in the Democratic Baltimore platform of 1852, with the additional plank inserted in the Cincinnati Convention of 1856.

It was well known then that Mr. Stephens had serious apprehensions that those principles would be departed from in the next Democratic Convention to be held in Charleston the following year. It was also known that he did not finally determine to withdraw from Congress until after a personal interview with Mr. [James] Buchanan, in which he had urged the President to cease his warfare against Mr. [Stephen] Douglas, and the support of the paper known as his organ in Washington in insisting upon the insertion of a new plank in the next Convention, asserting it to be the duty of Congress to pass acts to protect slavery in the Territories, and not to leave that subject, as the Cincinnati platform had done, with the people of the Territories.

Mr. Stephens most urgently urged the President that if he continued to pursue the line of policy he was then following there would be a burst-up at Charleston, and with that burst-up of the Union – temporary or permanent – “as certainly as he would break his neck if he sprang from that window” [of the reception-room at the White house, in which they were conversing] “or as the sun would set that night.”

Mr. Buchanan seemed surprised at this opinion, but was unshaken in his determination to adhere to the policy he was then following. Mr. Stephens, in taking leave, told the President that his object in seeking the interview was to know if his purpose was as stated, and if that was so, his own intention was, not to be allowed to return to the next Congress.

He had spent sixteen years of life in striving to maintain the Union upon the principles of the Constitution; this he thought could be done for many years to come upon the principles set forth in the Cincinnati platform. The Government administered on these principles he thought the best in the world; but if it was departed from, he saw nothing but ruin ahead. He did not wish to be in at the death; but if disunion should come in consequence of this departure, he should go with the people of his own State.

Another fact connected with the retirement of Mr. Stephens from Congress may be noted here. When leaving Washington, with a number of other Southern members, on the beautiful morning of the 5^th of March, 1859, he stood at the stern of the boat for some minutes, gazing back at the Capitol, when someone jocularly said, “I suppose you are thinking of coming back to those halls as a Senator.” (It was known that he had announced his intention not to return as a Representative.)

Mr. Stephens replied, with some emotion, “No; I never expect to see Washington again, unless I am brought here as a prisoner of war.” This was literally fulfilled in the latter part of October 1865, when he passed through Washington on his way to his home as a paroled prisoner from Fort Warren.”

(Life of Alexander H. Stephens, R.M. Johnston & W.H. Brown, J.B. Lippincott & Co., 1883, excerpts, pp. 347-348)

Few, if any, Gilded Age tycoons were expert economists – but all understood theories of supply and demand, the law of diminishing returns, and assumed that every man was motivated by the selfish love of gain. Most also believed in unfettered competition, theoretically, unless bribed government officials could be used to handicap competitors. U.S. Grant’s notorious administration of corrupt and bought politicians helped pave the way into the Gilded Age – the predictable outcome of Lincoln’s revolution.

Bernhard Thuersam, www.Circa1865.com

Corporate Tricks and Devices

“Nobody expounded the folly of tampering with the laws of economics more eloquently than Yale’s great teacher of political economy, the dynamic William Graham Sumner. In his book What Social Classes Owe to Each Other, published in 1883, he had put the reformers to rout.

“The yearning after equality,” he had written, “”is the offspring of envy and covetousness, and there is no possible plan for satisfying that yearning which do aught else than rob A to give to B; consequently all such plans nourish some of the meanest vices of human nature, waste capital, and overthrow civilization.”

This emphatically did not mean that Sumner was opposed to a better life for everybody. On the contrary, as a man of high and generous principle – he had begun his working life as a clergyman – he was heartily in favor of it. But he believed in the wider extension of opportunity, not in changing the rules under which business was conducted. He argued that:

“[Instead] of endeavoring to redistribute acquisitions which have been made between the existing classes, our aim should be to increase, multiply, and extend the chances. Such is the work of civilization. Every improvement in education, science, art or government expands the chances of man on earth. Such expansion is no guarantee of equality. On the contrary, if there be liberty, some will profit by the chances eagerly and some will neglect them altogether. Therefore, the greater the chances, the more unequal will be the fortune of these two sets of men. So it ought to be, in all justice and right reason.”

Sumner would not have argued that there were not some ways in which legislation could protect the economically helpless. But he thought that most reform legislation was conceived in ignorance and drafted in folly.

“You need not think it necessary,” he would tell his Yale classes, “to have Washington exercise a political providence over the country. God has done that a good deal better by the laws of political economy.”

The irony of the situation lay in the fact that for generations men have been tinkering with economic law to their own advantage, and in the process had produced institutions which were emphatically not God’s work – as most of Sumner’s hearers presumably supposed them to be – but man’s.

The corporation, for instance, was not an invention of God’s. It was an invention of man’s. It was a creature of the state . . . [and] one of the great inventions of the nineteenth century . . . Yet be taking adroit advantage of the legislative acts which defined its privileges, one could play extraordinary tricks with it. Corporate devices could be used to permit A to rob B – or, let us say, more charitably, to permit A to drain off all the gravy in sight and leave none for B.

It was largely as a result of the discovery of tricks that could be played with corporations, and particularly with their capital stock, that the wealth produced in such a tremendous spate at the turn of the century flowed in large proportion into a few well-placed hands.”

(The Big Change, America Transforms Itself, 1900-1950, Frederick Lewis Allen, Harper & Brothers, 1952, pp. 67-69)