Circa1865

The framers of our second constitution in 1787, as they did in their previous Articles of Confederation, clearly intended to protect their States, and their citizens, from an oppressive central government like the one they had just freed themselves from. And in no way would they have wanted a federal agent intruding into State domains and forced compliance with regulations formulated by distant bureaucrats. With an all-powerful federal bureaucracy emerging victorious in 1865, no State – North or South – could dare challenge the federal interpretation of the Constitution or what passed for federal law.

Bernhard Thuersam, www.Circ a1865.com

Judicial Overthrow of State Governments

“Two hundred and eight years ago, when the Tenth Amendment to the United States Constitution was ratified, there was general agreement with its text: “The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people.”

Two hundred and eight years ago, Americans thought of themselves as citizens of their States first, and only secondarily as citizens of a national federation. Now it is unclear that most Americans are aware of the Tenth Amendment, let alone the principle that the federal government is supposed to be one of limited and enumerated powers.

How did we come to this pass? Is there any hope that the federal courts will once again read the Constitution and, at least to the extent implied by that document, resurrect something of the doctrine of States’ rights? [Even] Washington, Hamilton and Madison would have been astonished at present-day incursions of the central government and its courts.

Passed after the Civil War, the 14^th Amendment was originally designed to allow newly freed blacks to own property and to make contracts. But it became a tool, in the hands of mid-20^th century federal courts, to impose a centralized, secularized and egalitarian social system on the entire nation.

Federal judges began to read the 14^th Amendment provisions that no State should be permitted to deprive any person of the “equal protection of the laws” nor to deprive any person of life, liberty, or property without “due process” as a license to turn the restrictions of the Bill of Rights against the States and to set up strict rules about which State policies were permissible and which were not.

With the scantiest evidence, and in the face of overwhelming data to the contrary, the Supreme Court declared that the 14^th Amendment was designed to “incorporate” at least some, and perhaps all, of the protections of the Bill of Rights against State governments.

There is no doubt that the Bill of Rights, the first ten amendments to the Constitution, had been drafted in the late 18^th century in order to reassure the proponents of strong State governments that the federal government would not infringe on the sovereignty of the States or their people. Without even acknowledging the usurpation, the federal courts turned the Bill of Rights into a tool to reduce radically the discretion of the State governments.

The First Amendment clearly provides, for example, that “Congress shall make no law abridging freedom of speech . . . or regarding an establishment of religion,” but the congressional prohibition was soon read – blatantly contrary to the intention of the frames of the Bill of Rights, if not the framers of the 14^th Amendment itself – to extend to State legislatures and officials as well.

It may be too late to save State sovereignty and the original intention of the Constitution. A slew of bold supreme Court appointments by a conservative Republican president might help, but so far only Justices Thomas and Scalia, and occasionally Justice Rehnquist, have acknowledged that the Court has been operating for one or two generations in clearly unconstitutional territory.”

(Sisyphus and States’ Rights, Stephen B. Presser; Chronicles, April 1999, excerpt, pg. 13-14)

Major-General Samuel Gibbs French, a Confederate officer born in New Jersey, stated shortly after the war that “woman is responsible for [Confederate] Memorial Day,” noting that the annual remembrance of those who died in defense of American liberty was a “pleasing duty” that the Southern woman took upon herself to perform annually. He added: “I am not unmindful, ladies, of the power you possess and can exercise in preserving the true story of the war and the memory of the Confederate soldiers. Tell the true story to your children. If you do not, their nurses will tell them [their version].”

Bernhard Thuersam, www.Circa1865.com

Keep Northern Texts Out of Southern Schools

“The true cause of the War Between the States was the dignified withdrawal of the Southern States from the Union to avoid the continued breaches of that domestic tranquility guaranteed, but not consummated by the Constitution, and not the high moral purpose of the North to destroy slavery, which followed incidentally as a war measure.

As to the war itself and the result thereof, the children of the future would be astonished that a people fought so hard and so long with so little to fight for, judging from what they gather from histories now in use, prepared by writers from the North. They are utterly destitute of information as to events leading to the war. Their accounts of the numbers engaged, courage displayed, sacrifices endured, hardships encountered, and barbarity practiced upon an almost defenseless people, whose arms-bearing population was in the army, are incorrect in every way.

A people, who for four long years, fought over almost every foot of their territory, on over two thousands battlefields, with the odds of 5,864,272 enlisted men against their 600,000 enlisted men, and their coasts blockaded, and rivers filled with gunboats, with 600 vessels of war, manned by some 35,000 sailors, and who protracted the struggle until over one-half of their soldiers were dead from the casualties of war, had something to fight for.

They fought for the great principle of local self-government and the privilege of managing their own affairs, and for the protection of their homes and firesides.

The facts are that while the South has always been prominent in making history, she has left the writing of history to New England historians, whose chief defect is “lack of catholic sympathy for all the sections of the country.”

They especially treat the South as a section, almost as a foreign country, and while omitting the glaring faults of their own ancestors and their own section, they specialize the faults of the early Virginia colonists and the Southern colonists generally.

They speak of slavery as a crime for which the South is solely responsible . . . and ignore the historical fact that England and New England are as much responsible for it as their brothers of the South; that it was forced not only on New England, but on the South, by Great Britain, and in spite of the protests of Virginia and other Southern colonies.

The histories written by Northern historians in the first ten or fifteen years following the close of the war, dictated by prejudice and prompted by the evil passions of that period, (and generally used in the schools), are unfit for use, and lack all the breadth, liberality, and sympathy so essential to true history, and, although some of them have been toned down, they are not yet fair and accurate in the statement of facts.

Until a more liberal tone is indicated by Northern historians, it is best that their books be kept out of Southern schools. It is therefore important that that the Southern people be aroused and take steps to have a correct history written, a history, which will vindicate them from the one-sided indictment found in many of the histories now extant.”

(Report of the Historical Committee (excerpt), United Confederate Veterans, Gen. S.D. Lee of Mississippi, Chairman, presented at the Houston Reunion; Confederate Veteran, June 1895, excerpt, pp. 165-166)

In the same way victorious Northern armies were followed by political adventurers and reformers backed by Union bayonets in the American South, the multitude of Washington-directed foreign interventions to date have been justified with the intention of spreading what is said to be American democracy, though the founders never intended this nor does the word “democracy” appear in the United States Constitution. In 1821, Secretary of State John Quincy Adams stated that “[America] does not go in search of monsters to destroy. She is the well-wisher to the freedom of freedom and independence to all. She is the champion and vindicator only of her own.” A wise policy that was discarded after 1865. The French intervention in Vietnam mentioned below was financed with American tax dollars.

Bernhard Thuersam, www.Circa1865.com

Reconstructing People in the American Image

“The policies we see today in Washington, DC reflect [a strategy of] the Federal Government [molding and reconstructing] societies at will with no regard for the population’s history, culture or values. Our ongoing meddling in Bosnia, where our advertised intention of forging a multiethnic society out of feuding Croatians, Serbs, and Moslems has only fenced people into a gladiators arena despite their clear preference to go about peaceably building their own communities in their own way.

Only continues military occupation by the United States working through the United Nations keeps this artificial political creation together, taking up the role formerly played by the Ottoman Turks, the Austrians, and [Marshal] Tito.

The United States have a long history of using force to erect and try to hold together artificial regimes. The most costly instance of such interference – so far – was he United States support for South Vietnam. As with every intervention since the War for Southern Independence, the advertised justification was to spread the American idea of freedom throughout the world.

Americans saw no need to ask the Vietnamese if they agreed to having their nation reconstructed in the American image, but the American government believed that their ideas applied to everybody. The Vietnamese, tightly organized and highly motivated to defend their way of life, managed to defeat a superior French force backed by American B-26 bombers.

Once the French decided they had had enough, American forces took up the fight. The assumption that the Vietnamese, like everyone else in the world, secretly wanted to adopt an American identity, led by Washington, DC into a self-manufactured disaster.

Assuming that all differences in world cultures are accidental mistakes and that force is necessary to impose a beneficial order upon uncomprehending and ungrateful recipients, advocates for armed intervention lull themselves to sleep at night with the assurance they have murdered no one but uneducable obstructionists.

By 1967, the US Air Force had dropped more than 1.5 million tons of bombs on the Vietnamese, more than the total dropped on the whole of Europe in World War II. The stimulus did not work, leaving the experts in the Pentagon groping for an answer.

“We anticipated that they would respond like reasonable people,” said one Defense Department official. Instead of responding reasonably, the Vietnamese responded like people, and won.”

(Confederates in the Boardroom: How Principles of Confederation are Rejuvenating Business and Challenging Bureaucracy; Michael C. Tuggle, Traveller Press, 2004, excerpt, pp. 52-55)

At North Carolina’s 1867 State convention at Raleigh, Northerners were actively creating Republican Party organizations in every county, and all featured the revival of secret political societies like the Heroes of America and the infamous Union League. White Republicans were quick to realize that mobilizing the black vote was the key to dominating and controlling Southern politics. As Joseph G. de R. Hamilton wrote in “Reconstruction in North Carolina (1914, pg. 242), “In a spectacular way the colored delegates were given a prominent place in the convention. Most of the white speakers expressed delight at the advancement of the Negroes to the right of suffrage.”

Bernhard Thuersam, www.Circa1865.com

Consolidating the Northern Triumph

“With the adoption of the Thirteenth Amendment and the elimination of slavery, every African-American was counted as one person and not three-fifths of a person for purposes of congressional representation.

If the white and black voters of the South united, the southern and Northern Democrats could possibly control both houses of Congress. The Republican Party went into panic mode – what was to be done?

The answer was simple: export racial hatred from the North to the South with a little twist. Instead of white people being taught to hate black people, as was so common in New England, Republicans would teach Southern black voters to fear and hate Southern white voters.

It should be pointed out that most Northern States at that time still prohibited African-Americans from voting. By mobilizing a large bloc of angry black voters and prohibiting large numbers of white Southern voters from exercising the right to vote, the Republican Party insured its rule in Washington.

The Republican Party’s fear of a racially untied South was made even more frightening when former Confederate leaders spoke out in favor of black/white unity. Just a few months after the close of the War, from New Orleans, General [PGT] Beauregard stated:

“The Negro is Southern born; with a little education and some property qualifications he can be made to take sufficient interest in the affairs and prosperity of the South to insure an intelligent vote.”

No one can question the Confederate General who is slandered the most as an evil racist is Nathan Bedford Forrest. In a speech to a group of black voters, Forrest reflected the goodwill that had existed before Republican Reconstruction, He states:

“We were born on the same soil, breathe the same air, live in the same land, and why should we not be brothers and sisters . . . I want you to do as I do – go to the polls and select the best men to vote for . . . although we differ in color, we should not differ in sentiment . . . do your duty as citizens, and if any are oppressed, I will be your friend.”

The use of race-hatred became a very successful Republican tool to divide the South into warring parties. These warring parties, both black and white, failed to realize that in the process of enriching Republican industrialists, bankers and politicians, they were at the same time impoverishing themselves.”

(Punished with Poverty: The Suffering South, Prosperity to Poverty & the Continuing Struggle; James & Walter Kennedy, Shotwell Publishing, 2016, excerpts, pp. 65-66)

The vigilante justice of lynching was not confined to the South as is commonly believed, and race relations in the North, before and after the war, were seldom harmonious.  Black abolitionist Frederick Douglass thought his home in New York was surrounded by the spirit of Klansmen, perhaps attracted by his prewar militant activities which had brought on a war that claimed many Northern lives. Douglass fled to Canada after the State of Virginia wanted him extradited to stand trial as an accessory to John Brown; Brown met with Douglass prior to Harper’s Ferry.

Bernhard Thuersam, www.Circa1865.com

The Spirit of Hate in Rochester

“After his Rochester, New York, home was burned to the ground by incendiary on June 1, 1872, Frederick Douglass expressed his anger in his weekly New National Era: “Was it for plunder, or was it for spite? One thing I do know and that is, while Rochester is among the most liberal of Northern cities, and its people are among the most humane and highly civilized, it nevertheless has its full share of the Ku-Klux spirit . . . It is the spirit of hate, the spirit of murder.”

Race relations were often contentious in Rochester due in part to Douglass’s strong civil rights voice. By 1870, although Rochester’s African-American population was minute – just 427 out of a total population of 62,386 – racial tension, especially over employment, prompted concern by whites.

On Saturday, December 30, 1871, the [Rochester Daily] Union’s third edition published the city’s first report of the rape of an eight-year-old German girl by a black man after she had returned from a church event. News of the crime “spread like wild fire” after the child was returned to her parents. She had been brutally beaten but described her attacker to the police who began a frantic search for him.

Early Monday morning officers arrested William Edward Howard, and he was identified as the rapist by the girl at her home. Her father later “apologized to [a] reporter for not having killed the Negro when he was in the house.” Howard was not a stranger to the city’s police. In early 1871, he was arrested for voting illegally, and he served six months in jail. At the time of his arrest for rape, there was a warrant for his arrest for stealing from a local German woman.

Douglass’s son, Charles, who worked with his father on New National Era, wrote to his father on January 20: “That Howard boy was in my company in the 5^th Cavalry. He came to the regiment as a [paid] substitute, and asked to be in my Co. I had to tie him up by the thumbs quite often. His offence was stealing.”

Outside the jail an agitated mob assembled . . . composed mainly of Germans, was intent on taking the law into its own hands, and the jail became Howard’s fortress. The [Rochester Daily] Union’s reportage was most descriptive: “Threats were made to lynch him and matters looked serious . . . four or five hundred people in the assemblage . . . [and cries of] “kill the nigger, give us the nigger” were loud and frequent.” [Judge R. Darwin Smith pronounced] “The sentence of the Court is that you be confined to Auburn State Prison for the period of twenty years at hard labor. The law formerly punished your crime with death.”

At the prison entrance, Howard turned toward [an angry crowd of several hundred men] and with his free hand placed his thumb on his nose and waved his fingers to mock them. Once in jail, Howard renounced his guilty plea, and professed his innocence.”

(The Spirit of Hate and Frederick Douglass, Richard H. White, Civil War History, A Journal of the Middle Period, Volume 46, Number 1, March 2000, pp. 41-47)

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)

What General Enoch Crowder warned of below was reminiscent of Reconstruction’s political control in the South, as Washington-recognized Northern carpetbag governors and legislators gained official recognition and were free to engage in fraudulent political methods and elections to remain in power. Under Lincoln and the Republican Radicals, the US government became “a blind instrument for fastening an undesirable or fraudulent government upon a people” – 50 years later the Cuban people were assured of fraudulent government fastened by Washington.

Bernhard Thuersam, www.Circa1865.com

Liberator and Imperial Protector

“The conditions imposed on Cuban independence at the end of the American military occupation in 1902 had effectively subjected Cuban sovereignty to U.S. supervision. “The Government of Cuba,” Article III of the Platt Amendment stipulated, “consents that the United States may exercise the right to intervene for the preservation of Cuban independence, the maintenance of a government adequate for the preservation of life, property and individual liberty, and for discharging the obligations with respect to Cuba imposed by the Treaty of Paris on the United States.

By virtue of the Platt Amendment, Washington assumed ultimate responsibility for underwriting the solvency of national administration. The very conduct of [Cuban] national politics emerged as a source of policy concern in Washington. The American presence in Cuba loomed pervasively, functioning always as the understood coefficient of all political strategies.

Specifically, the Platt Amendment, as the understood basis of U.S. Cuban policy, encouraged outright an incumbent party, assured of American support, to embark on a course of partisan excesses, including reelection through illegal, if ostensibly constitutional, methods.

As early as 1912, General Enoch H. Crowder, the U.S. legal advisor during the second intervention, caution Washington against becoming captive to the political maneuvers of any single faction in Cuba. With a sober understanding of . . . U.S. – Cuban treaty relations, Crowder warned:

“Having once gained the official recognition of this government, and so become “the duly constituted authority,” . . . it could by fraudulent practices as was undoubtedly done in the last election for President prior to the election of 1906, secure its apparent reelection, and if the protest became too violent to overcome, such government would only have to notify the President of the United States and request assistance. The right of a people to change their rulers, and in fact change their form of government when it becomes subversive of the principle for which it is instituted . . . is essential to the preservation of a free government . . . Provision should be made that the United States will not be made the blind instrument for fastening an undesirable or fraudulent government upon a people whom we profess to be preserving a free government.”

Crowder’s plea went unheeded. On the contrary, within a year, Woodrow Wilson proclaimed constitutionality as the cornerstone of US Latin American policy . . . “We are the friends of constitutional government in America, Wilson averred, “We are more than its friends, we are its champions.”

(Intervention, Revolution and Politics in Cuba, 1913-1921; Louis A. Perez, Jr., University of Pittsburgh Press, 1978, excerpts pp. 11-12)

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)