Circa1865

Fully aware of the sufferings of Northern prisoners in the South due to the blockade, President Jefferson Davis in the summer of 1864 sent commissioners to Washington to bring US surgeons to the Southern camps to dispense medicine. No reply was ever received and Lincoln refused to meet the commissioners, leading Davis to wonder if Federal were prisoners left to suffer, and afterward photographed “to aid in firing the popular heart of the North?”

Bernhard Thuersam, www.Circa1865.com

An Inhuman and Barbarous Act

“The South had been dependent upon the outside world for medicine of all kinds, except “home remedies” used by many of its people. Of all imported, none was so necessary in the South as quinine, since malaria was prevalent over most of the region.

As if striking at the most vulnerable spot in the Confederacy, the United States, immediately upon the outbreak of war, placed medicine on the contraband list. Few war measures caused feeling to run so high in both the North and the South, for many felt this to be an inhuman, barbarous act.

When the American Medical Association met in New York in 1864, some doctors decided that they would try to get the restrictions regarding medicine going into the Confederacy lifted in the name of humanity, but their motion to that effect was tabled “indefinitely.” And the restrictions were not removed for the duration of the war. A poem urging the continuance of the contraband principle was widely circulated in the Northern newspapers as follows:

“No more quinine – let ‘em shake; No more Spaldings pills – let their heads aches; No morphine – let ‘em lie awake: No mercury for the rebels take though fever all their vitals bake;

No nitre drops, their heat to slake; No splinters though their necks they break, And, above all, no Southern rake, Shall have his ‘wine for stomacks sake,’ Till full apology make.”

From the adoption of Federal restrictions, there was never sufficient medicine to relieve the sickness and suffering in the Confederacy.

Medicines and surgical equipment were captured from time to time, but this became increasingly rare as the course of the war turned against the Confederates. And when such supplies were captured, they were diverted to military channels and had no effect on the supply of medicines for civilians.

The second source of supply, through running the blockade, proved far more successful. Small in bulk and high in price, medicine became part of the cargo of nearly every blockade runner. Land blockade-running was more interesting than running of the water blockade. Drugs were sent down the [Mississippi] river originally from Paducah, Kentucky, or Cairo, Illinois, by Northern speculators or traders and were sent ashore into the Confederacy at night.

During the late winter and early spring of 1862, a story was widely circulated that some of the quinine sent into Tennessee and Arkansas in this manner was poisoned; heated editorials and warnings followed. The quinine was believed to contain strychnine, and the people were cautioned against its use.”

(Ersatz in the Confederacy, Shortages and Substitutes on the Southern Homefront, Mary Elizabeth Massey, University of South Carolina Press, 1952, excerpts, pp. 115-117)

Many Southerners like Georgia’s Benjamin H. Hill wanted to hold out against secession after Lincoln’s election, and labeled the purely sectional Republican Party as disunionist and an enemy of the Constitution. He reasoned that if Andrew Jackson could coerce South Carolina for nullification thirty years prior, why not coerce the guilty Northern States who nullified the federal fugitive slave law?

Bernhard Thuersam, www.Circa1865.com

That The Union Not Be Abandoned To Its Enemies

“On the fifteenth of November [1860], following [Howell] Cobb, [Robert] Toombs and [Alexander] Stephens, Hill appeared before the Assembly and made an eloquent argument against immediate secession or any precipitate action. The speech is primarily a closely reasoned appeal for moderation and a plea that passion and prejudices be discarded in the face of the imminent crisis.

“What are our grievances?” asks Hill; and then he proceeds to enumerate them, outlining the discriminatory policies and propaganda of the Republican party and laying special emphasis on the nugatory action of various free-State legislatures, affecting the fugitive slave laws. Hill represents the Republican Party as the real disunionist party, and quotes from various abolitionists who damn the Union and Constitution because they permit slavery. The grievances, then, are plain, and agreed of all Southern men.

Moreover, Hill believes the redress of grievances is not so hopeless a prospect in the immediate future. But suppose, for the sake of argument, redress of grievances within the Union is impossible, surely it is worth the effort; and all are agreed . . . that if such redress fails, then secession must come. But what are the remedies then, which are proposed within the Union.

First, the demand must be made by all the Southern States that the laws protecting slavery and requiring the rendering up of fugitive slaves must be enforced. The demand can be made as an ultimatum if need be. If necessary, let the federal government enact a force bill against any recalcitrant Northern State refusing obedience, as was done against South Carolina in 1833. Let the wrangling about slavery cease, and the entire machinery of government, if necessary, be put behind the enforcement of existing laws.

And Lincoln must come to this view. His only strength is in the law; he is bound by oath to carry out the law. A Southern president had once coerced a Southern State; now let a Northern president coerce a Northern State, if it comes to that. Hill insists that such a resolute attitude has never been taken by the Southern States, and he pleads that the Union not be abandoned to its enemies without making this effort to save it . . . He asks: “Is this Union good? If so, why should we surrender its blessings because Massachusetts violates the laws of that Union? Drive Massachusetts to the duties of the Constitution or from its benefits . . . Let us defend the Union against its enemies — not abandon it to them.

On December 6, Cobb, in an address to the people of Georgia announcing his resignation from [President James] Buchanan’s cabinet, averred that : “the Union formed by our fathers, which was one of equality, justice and fraternity would be supplanted on the 4th of March by a Union of sectionalism and hatred — the one worthy of the support and devotion of free men, the other only possible at the cost of Southern honor, safety and independence.”

This was followed up on December 23 by Toombs telegram to the Savannah Morning News, after the failure of the Crittenden Compromise: “I will tell you upon the faith of a true man that all further looking to the North for your constitutional rights in the Union ought to be abandoned. It is fraught with nothing but ruin to yourself and posterity.”

(Secession and Reconstruction, Haywood J. Pearce, Jr., University of Chicago Press, 1928, pp. 43-45)

Churchill wrote in 1931 that JEB Stuart was the key to victory in early July, 1863 at Gettysburg. Had Stuart crashed into the rear of the enemy army at the time of Pettigrew’s Charge, a full rout would have ensued and the South gaining its independence. Churchill imagined a Southern victory at Gettysburg as the beginning of a great alliance of English-speaking countries that would spread wealth and prosperity in the world.  He wrote derisively about what might have followed a Northern victory: “Let us only think what would have happened supposing the liberation of slaves had been followed by some idiotic assertion of racial equality, and even attempts to graft white institutions upon the simple, docile, gifted African race belonging to a much earlier chapter of human history.”

Bernhard Thuersam, www.Circa1865.com

The Confederacy and Churchill’s English Speaking Association

“In 1932, with reparations and war debts frozen and the world in the depths of the Depression, the writer J.C. Squire published an entertaining (though now largely forgotten) collection of what he called “lapses into imaginary history.” Three of his eleven contributors chose to rewrite history in such a way as to “avoid” the First World War.

Andres Maurois did it by imagining away the French Revolution. As his omniscient “Archangel” explains, the imaginary world after a century and a half of Bourbon rule in France “is divided a bit differently. The United States did not break away from England, but so vast have they grown that they now dominate the British Empire . . . The Imperial Parliament sits in Kansas City . . . the capital of . . . the United States of Europe . . . in Vienna.” There has been no “war of 1914 – 1918.”

Winston Churchill entertained a similar fantasy by assuming a Confederate victory at Gettysburg and the subsequent emergence in 1905 of an “English Speaking Association” of Britain, the Confederacy and the Northern United States:

“Once the perils of 1914 had been successfully averted and the disarmament of Europe had been brought into harmony with that already effected by the [English Speaking Association], the idea of “An United States of Europe” was bound to occur continually. The glittering spectacle of the great English-speaking combination, its assured safety, its boundless power, the rapidity with which wealth was created and widely distributed within its bounds, the sense of buoyancy and hope which seemed to pervade entire populations; all this pointed to European eyes a moral which none but the dullest could ignore.”

(The Pity of War, Explaining World War One, Niall Ferguson, Basic Books, 1999, pg. 457)

Jefferson Davis was the conservative who tried vainly to save the Union in the face of Republican attempts to pit North against South, and force the South to seek a more perfect union without the North. The greatest ironies of that era was Rhode Island being the slave trading center of North America by 1750; Yankee inventor Eli Whitney making cotton planting more productive and thus perpetuating slavery; and the cotton mills of Massachusetts with their ravenous appetite for slave-produced cotton – they could have ended slavery easily.

Bernhard Thuersam, www.Circa1865.com

Unionist Davis, Radical Lincoln

“Davis appeared as a politician in 1843, and, indeed, as leader of the Democratic [Conservative] party of Mississippi. We pass over the different phases of the internal political life of the Union, in which the chasm which separated North and South was growing wider.

We can refer to only one incident and two speeches, the first of which Davis made on the occasion of his defense of the new railroad line, Mississippi-still Ocean, and in which he with glowing patriotism praised the strength of the bond which held together States of the Union; and the other of which was made by a man who, as a genuine radical, had opposed the war against Mexico as unnecessary and unconstitutional.

This other speaker said in a certain way eloquently giving momentum for the secession of the Southern States: Every people who have the will and power for it possess also the right to rise, shake off their government and establish a new one which suits them better. This is an invaluable, sacred right which will at some time free the world.

And who . . . was this man who in a certain manner pressed into the hands of the Southern States the right of throwing off a hated government? It was Abraham Lincoln, who made this speech on the 12th of February, 1858 in the House of Representatives. The one who praised and invoked the concord of the Union was, by his contemporaries, stigmatized as a traitor. The other is esteemed and venerated to-day by many, as the defender and preserver of the Union!

Only as a curious fact for the superficial critics of the whole conflict, it may here be stated that at the beginning of the settlement of the country, the Southern States had a greater aversion to slavery than the Northern States.

From 1720 to 1760, South Carolina unceasingly protested against the introduction of slave labor. Georgia forbade it by law. Virginia decidedly opposed it and levied a tax of ten dollars on each Negro. They were originally forced to adopt this [labor] system through the avarice of English merchants, and the despotism of the English ministers which had later, certainly for the South, its demoralizing features.

It was the South also which at first prohibited the slave trade, and Virginia at the head. When Jefferson Davis was born, the slave trade was in the hands of only Northern merchants who had made terms with the slave planters of South Carolina.

Other curious facts may here be introduced. A statue of Lincoln was executed, which represented him as loosing the chains of the slave. What would the beholder say if the following words he wrote after the secession of South Carolina were chiseled on the pedestal:

“Does the South really fear that a Republican administration could directly or even  indirectly interfere in its slave affairs? The South would in this matter be just as safe as in the time of Washington.”  Or, that he wrote on the 4th of May, 1861: “I have not the intention of attacking the institution of slavery; I have no legal right, and certainly no inclination to do it, etc, etc.”

(Jefferson Davis, Southern Historical Papers, R.A. Brock, Editor, Volume XIX, 1891, pp. 409-410)

In mid-1863, Tammany Hall’s Boss Tweed found a way to settle the hated draft issue, give Lincoln his cannon fodder, and buy immigrant votes. Tweed brokered a deal with New York City politicians to find substitute recruits for drafted city residents, use the city treasury to pay whatever signing bonus the market would require, and tap a special $2 million “substitute” fund financed by bonds to be sold on Wall Street. If a New York City resident got caught in Lincoln’s draft, he could either use the fund to buy his way out, or join the army and keep the money. With this deal, Lincoln used Tammany Hall to run his draft in New York.

Author Kenneth Ackerman wrote in his biography of Boss Tweed: “His county recruitment drive for the army would attract scandal: abusive bounty brokers, unqualified soldiers — either prisoners from local jails or immigrants literally straight from New York harbor — and middlemen stealing fortunes in graft. But it hardly raised an eyebrow compared to the epidemic of war profiteering that had infected the country.”

Bernhard Thuersam, www.Circa1865.com

Northern Race Riots, Conscription and Substitutes 

“For four days terror reigned [in New York City], marked by a series of grisly lynchings [of black residents]. A mob even swarmed onto a British ship in the harbor, and despite the Captain’s protests, cruelly beat up the foreign Negroes among the crew. The police were barely able to save the Tribune Building from total destruction. Men searched for the Tribune’s editor, singing, “We’ll hang Horace Greeley from a sour apple tree.”

A Negro orphanage on Fifth Avenue was burned to the ground. Looters had a field day, among them screeching women who opposed [military] conscription.

Troops were rushed from Gettysburg [immediately after the battle]; cadets from West Point came to aid the police; the entire naval force in the region was called upon to quell the disturbance. Finally, in desperation, the military raked the streets with cannon fire. But what really stopped the rioting was a posted notice: “the draft has been suspended in New York City and Brooklyn.”

The newspapers carried the word in huge print. Order was finally restored. According to the Tribune of July 25, some 350 people had been killed; but other estimates went much higher. Casualties, including the injured, amounted to 1,000 and private property damage was estimated at $1,500,000.

Republican newspapers claimed the outbreak had been sparked by Confederate agents. But Democratic Party feeling and a sincere desire for peace were mingled with race prejudice and resentment against what the anti-Lincoln papers called the “incompetence” of the Administration. Men resented fighting against their convictions and were indignant at “governmental “frauds and profiteering.”

Apparently, from the magnitude of the outbreak, the London Times had not been far wrong in predicting that if the South won in Pennsylvania, Jefferson Davis and General Robert E. Lee would receive a rousing welcome along Broadway.

Soon after the tumult subsided, the Democratic City Council of New York voted that the exemption [from military service] money of four hundred dollars for impecunious draftees would be paid from the city treasury. To meet Governor Seymour’s charge that the conscription as practiced was “unequal, fraudulent and a disgrace,” President Lincoln reduced the New York quotas [for troops].

When the draft was resumed a month later, he took the precaution of sending 10,000 infantrymen and three artillery batteries from the Army of the Potomac to see that the business went off quietly.

During New York’s bloody pandemonium, [British Colonel Arthur] Freemantle had been surprised to hear everyone talking of the “total demoralization of the Rebels.” To him it sounded absurd, since only a few days previously he had left Lee’s army “as full of fight as ever,” much stronger and more efficient from every military point of view than when it had crossed the Potomac to invade Maryland the previous September.

In the Colonel’s opinion, Lee’s army had “not lost any of its prestige at the battle of Gettysburg, in which it had most gallantly stormed strong entrenchments defended by the whole Army of the Potomac.”   Freemantle took ship for England and completed his book of observations at sea. “The mass of respectable Northerners,” he wrote, “though they may be willing to pay, do not very naturally feel themselves called upon to give their blood in a war of aggression, ambition and conquest . . . The more I think of all I have seen in the Confederate States of the devotion of the whole population, the more I feel inclined to say with General Polk — “How can you subjugate such a people as this?”

[And] even supposing that their extermination were a feasible plan, as some Northerners have suggested, I never can believe that in the nineteenth century the civilized world will be condemned to witness the destruction of such a gallant race.”

(Jefferson Davis, Confederate President, Hudson Strode, Harcourt, Brace & Company, 1959, pp. 458-460)

Lincoln appointed no men to his cabinet who were familiar with Southern sentiment or sensitivities – an act which might have avoided a collision and perhaps have truly “saved the Union.” The Republican Party won the contest and would not be denied the fruits of victory no matter the cost. Charles Francis Adams was appointed minister at London by Lincoln, somewhat appropriate as Adam’s grandfather himself viewed the presidency as monarchical. More important, Adams was a Republican politician with little regard for the American South and put party above the welfare of the country.

Bernhard Thuersam, www.Circa1865.com

“They Have Made a Nation”

“For the post at London Lincoln had made one of his best appointments. As a boy [Charles Francis Adams] had witnessed stirring events in Europe; in the company of his mother he had taken the long and arduous winter journey by carriage from St. Petersburg to Paris to join his father John Quincy Adams. Passing through the Allied lines, he reached Paris after Napoleon’s return from Elba.

By 1861 he had served as legislator in Massachusetts, had become prominent as a leader of the “conscience” Whigs and the Free-Soilers, and had achieved the position of an influential leader of the national House of Representatives where his main contribution was as a moderate Republican earnestly engaged in the work of avoiding war.

Though depressed at the nomination of Lincoln, whom he never fully admired, he accepted appointment as minister to England and gave of his best as a loyal servant of the Lincoln administration.

Through all the diplomatic maneuvers there ran the central question of recognition of the Confederacy and the related questions of mediation, intervention and the demand for an armistice. Had the South won on any of these points, victory would have been well-nigh assured. By September of 1862 [Lord] Palmerston and Russell’s deliberations had reached the point where, in view of the failures of McClellan and Pope and the prospects of Lee’s offensive, Palmerston suggested “an arrangement upon the basis of separation” (i.e., Southern victory); while Russell, the foreign minister, wrote in answer that his opinion the time had come “for offering mediation . . . with a view to the recognition of the independence of the Confederates.”

[Just] at this juncture there came a bombshell in the speech of the chancellor of the exchequer, W.E. Gladstone, at Newcastle (October 7) in which he said:

“Jefferson Davis and other leaders of the South have made an army; they are making, it appears, a navy; and they have made what is more important than either, — they have made a nation . . . We may anticipate with certainty the success of the Southern States so far as regards their separation from the North.”

(The Civil War and Reconstruction, James G. Randall, D.C. Heath & Company, 1937, pp. 461-462; 468-469)

Virginians in 1861 deliberated on continuing their voluntary relationship with the federal government created by the States, remembering Jefferson’s words his Kentucky Resolutions of 1798:

” . . . reserving, each State to itself, the residuary mass of right to their own self-government; and that whensoever the General Government assumes undelegated powers, its acts are unauthoritative, void, and of no force: that to this compact each State acceded as a State, and is an integral party, its co-States forming, as to itself, the other party: that the government created by this compact was not made the exclusive or final judge of the extent of the powers delegated to itself; since that would have made its discretion, and not the Constitution, the measure of its powers; but that, as in all other cases of compact among powers having no common judge, each party has an equal right to judge for itself, as well of infractions as of the mode and measure of redress.”

Bernhard Thuersam, www.Circa1865.com

Virginian’s Choose Self-Determination

“James W. Sheffey, speaking five days before President Lincoln’s inauguration said:

“We love the Union, but we cannot se it maintained by force. They say the Union must be preserved — she can only be preserved through fraternal affection. We must take our place — we cannot remain neutral. If it comes to this and they put the question of trying force on the States which have seceded, we must go out . . . We are waiting to see what will be defined coercion. We wait to see what action the new President will take.”

Thomas Branch, speaking the day after President Lincoln’s inaugural address said:

“My heart had been saddened and every patriotic heart should be saddened, and every Christian voice raised to Heaven in this time of our trial. After the reception of Mr. Lincoln’s inaugural, I saw gentlemen rejoicing in the hotels. Rejoicing for what sir? For plunging ourselves and our families, our wives and children in civil war? I pray that I may never rejoice at such a state of things. But I came here to defend the rights of Virginia and I mean to do it at all hazards; and if we must go to meet our enemies, I wish to go with the same deliberation, and with the same solemnity that I would bend the knee in prayer before God Almighty.”

George W. Brent, speaking on the 8th of March said:

“Abolitionism in the North, trained in the school of Garrison and Phillips, and affecting to regard the Constitution as “a league with Hell and a covenant with death,” has with a steady and untiring hate sought a disruption of this Union . . . Recognizing as I have always done, the right of a State to secede, to judge of the violation of its rights and to appeal to its own mode for redress, I could not uphold the Federal Government in any attempt to coerce the seceded States to bring them back in the Union.”

(Virginia’s Attitude Toward Slavery and Secession, Beverley Munford, L.H. Jenkins Printer, 1909, pp. 265-267)

The war commenced by Lincoln in 1861 immediately presented his administration with the problem of a conflict the United States could simply not afford. In April 1861, federal spending was only about $172,000 a day, raised by tariffs and land sales. By the end of July 1861, Lincoln had caused this to increase to $1 million, and by the end of December it was up to $1.5 million per day. Also in December 1861 Northern banks had to stop paying their debts in gold, with the federal government doing the same shortly after and resorting to printing money. The country had gone off the gold standard, Wall Street was in a panic, and Lincoln would lament, “The bottom is out of the tub, what shall I do?” The cost of the war would eventually reach $8 billion, enough to have purchased the freedom of every slave five times over – and provided each with the proverbial 40 acres, and the mule.

Bernhard Thuersam, www.Circa1865.com

The War for Tariffs, Taxes and Astonishing Profits

“By May 1864 [financier Jay] Cooke was selling [Northern] war bonds so successfully that he was actually raising money as fast as the War Department could spend it, no mean feat for that was about $2 million a day at this point. Altogether, the North raised fully two-thirds of its revenues by selling bonds. If Abraham Lincoln must always be given the credit for saving the Union, there is also no doubt that the national debt was one of the most powerful tools at his disposal for forging victory.

Although the [Northern] people were willing to endure very high taxes during the war, peacetime was another matter altogether. Immediately after the war the cry for repeal of the wartime taxes became insistent. With military expenses quickly dropping, the problem, was what taxes to cut. American industrialists, who had prospered greatly thanks to wartime demand and wartime high tariffs, naturally did not want the tariffs cut.

Because the Civil War had broken the political power of the South, the center of opposition to the tariff, they got their way. The tariff was kept at rates far above the government’s need for revenue as the North industrialized at a furious pace in the last three decades of the nineteenth century and became the greatest – and most efficient – industrial power in the world.

Of course, no matter how large, efficient, and mature these industries became, they continued to demand [tariff] protection, and, thanks to their wealth and political power, get it.  As Professor William Graham Sumner of Yale explained as early as 1885, “The longer they live, the bigger babies they are.” It was only after the bitter dispute between Andrew Carnegie and Henry Clay Frick caused the astonishing profits of the privately held – and highly protected – Carnegie Steel Company to become public knowledge, in 1899, that the political coalition behind high tariffs began to crack.

Before the Civil War there had been little advocacy of an income tax in this country, at least at the federal level, although by the war six States had implemented such taxes for their own revenue purposes. But once a federal income tax was in place, thanks to the Civil War, it quickly acquired advocates, as political programs always do.

These advocates pushed the idea relentlessly . . . Republican Senator John Sherman . . . said during a debate on renewing the income tax in 1872, that “here we have in New York Mr. Astor with an income of millions derived from real estate . . . and we have along side of him a poor man receiving $1000 a year. [The law] is altogether against the poor man . . . yet we are afraid to tax Mr. Astor. Is there any justice in it? Why, sir, the income tax is the only one that tends to equalize these burdens between the rich and the poor.”

(Hamilton’s Blessing, John Steele Gordon, Penguin Books, 1997, pp. 79-83)

Audenreid, Pennsylvania mine owner George K. Smith was killed by his workers in early November 1863 in retaliation for providing their names to the military draft authorities. By mid-1862 Northern enlistments had dwindled and Lincoln resorted to conscription to fill the ranks.

Bernhard Thuersam, www.Circa1865.com

Pennsylvania Miners Resist Lincoln’s Draft

“Being a mine owner made Smith a much-despised man to begin with among the destitute miners. And the Civil War brought another factor into play that further fueled their hatred – the [Northern] government’s draft. One newspaper writer said the draft had converted the coal region into “a perfect hell.”

Ordering the immigrant German and Irish miners to serve in the Federal army and fight in a war they knew or cared little about proved too much for many of them to endure. They were being paid just fifty cents for a backbreaking day of work as it was, and when a mine boss collaborated with military authorities as Smith did, it doubled their rage.

As events turned out, Smith had written his own death certificate the moment he supplied work rolls to Union draft officials. Captain E.H. Rauch, the deputy provost marshal, injudiciously said that when he was in Beaver Meadow serving draft notices, Smith had given him a detailed map showing where each of the drafted men lived.

As early as 1862, rebellious bands of miners were becoming known and feared throughout the coal regions by encouraging desertions, interfering with recruiting, interrupting mining operations, and attacking loyalists who were devoted to the Union cause.

After the National Conscription Act was passed in August 1862, individual States were forced to draft men as a means of filling their quotas when the specified number of volunteers fell short. After the list of conscripts for each district was drawn, the men selected went immediately to their county seats and from there boarded trains for Harrisburg.

Immediately after the draft commenced, anti-draft leaders swung into action . . . From this rebellious group there emerged a secret band of terrorists known as the Buckshots, later to be known as the Molly Maguires. Mine bosses who [cooperated with Lincoln] were targeted . . . would receive an ominous notice posted on his door, complete with a picture of a coffin and two crossed pistols.

[Buckshot gangs in early 1863] boldly stopped a train with new recruits in the Schuykill County town of Tremont. Protection was promised for any new draftees who wanted to leave the train cars and return to their homes. Many took the Buckshots’ offer and skedaddled.

With the industrialized North in a wartime mode, the output of coal could not be hindered. Trouble in the minefields first caused alarm bells to sound in the State capital at Harrisburg, and the concern soon spread to Washington’s War Department and ultimately to President Abraham Lincoln.

Pennsylvania [Republican] Governor Andrew Curtin kept Washington informed of developments . . . [and] urged caution, realizing that with anti-war sentiment on the rise open conflict could have a bad effect on the rest of the country.

Alexander McClure of Chambersburg, a political ally of both Curtin and Lincoln, stated that “Lincoln was desirous of a course to see that the law was executed, or at least to appear to have been executed.”

(Coalfields’ Perfect Hell, Jim Zbick, America’s Civil War, March 1992, excerpts pp. 22-25)

Lincoln’s choice for the cabinet post of treasury, Salmon P. Chase, was no financial expert yet he was to advise Congress on the framing of financial bills, obtaining money from “keen-minded bankers and investors” like Jay Gould, as well as loans and paper money. The taxes collected were far smaller than expenditures and throughout the war the total amount received in loans was 2621 million dollars, against 667 million dollars obtained from taxation.

Bernhard Thuersam, www.Circa1865.com

Voodoo Economics Circa 1864

[Diary Entry] July 2, 1864:

“There is discord in the Cabinet. Mr. Seward represents the moderates, while Mr. Chase, the abolitionist and the inventor of paper money, represents the Radicals. He is regarded here, rightly or wrongly, as the greatest financier in the world. It seems to me that his entire science has consisted of keeping the ship afloat by throwing the provisions overboard. It is easier to borrow than to repay, and I fear Mr. Chase is leaving the difficult task to those who will follow him.

The failure of his financial policy and the defeat of a bill on gold that he recently submitted to Congress have led Mr. Chase to hand in his resignation.”

[Diary Entry] July 5, 1864:

“A financial crisis can, from one day to the next, reduce the value of paper money to virtually nothing. Everything now hangs on the hope of taking Richmond. But because Grant moves this way and that without gaining ground, because Petersburg, a town defended by children and schoolmasters, continues to stand firm against a hundred thousand men, and because the Confederates, far from giving in, are threatening Maryland with an invasion which is forcing the President to call up the militia and because, in a word, nobody sees an end to the war, public confidence is growing weaker.

The government itself, obliged to pay interest on the public debt in gold, is requiring that all customs duties be paid in gold. Nothing depreciates the currency so much as this self-distrust manifested in the Treasury. Until now the “greenbacks” have had more value in actual trading than that indicated by the rates quoted for them on the official gold market. But if ever the small businessmen should refuse to take them and if ever they should cease to circulate freely among the people, the poor Mr. [William P.] Fessenden (who has just succeeded Mr. Chase) will have to take over the direction of the Treasury only to associate his name with the impending national bankruptcy.

Let us return to Mr. Chase. He had a single obsession: to strangle speculation and force down the price of gold. He thought that to do this he needed only to decree an increase in the value of paper money, and that economic interests could be manipulated so easily as the parts of a machine. Thus he proposed a law prohibiting overdraft operations, speculative transactions which result in a paper loss or gain on balance. Judge for yourselves whether the waving of the Treasurer’s wand has had the magical effect he expected it to have.

By the very next day the speculators had taken fright and activity was concentrated in a small number of hands; now it is continued in secret, without competition, and this quasi-monopoly has immediately raised the price of gold by 40 percent. Congress wanted the bill withdrawn. Mr. Chase insisted that it be acted upon, and it was himself who had to withdraw.

If the moment of crisis ever comes when paper money is forced into the hands of only a few holders, the public will think only of getting rid of it, and America will offer to the world in a twofold sense the spectacle of “hideous bankruptcy.”

(A Frenchman in Lincoln’s America, Ernest Duvergier de Hauranne, Donnelly & Sons, 1974, pp. 77-88)