Circa1865

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)

Like Woodrow Wilson’s League of Nations — the victors imposing their order on defeated and newly-created ethnic “nations” in a utopian fashion — the later United Nations goal was to create the same and prevent future wars. Wilson naively believed that the League could prevent unethical behavior by states and use force to control them which did nothing but spark future wars. Today, formerly Christian nations in Europe have shed their historical identities to become merely market collectives with no borders, and populations of multi-ethnic tribes warring against each other.

Bernhard Thuersam, www.Circa1865.com

Today’s Tower of Babel

“[Western] nations are obviously evolving into godless societies; they hail not the sovereignty of God but of man, and claim that religious beliefs are essentially detrimental to peace. But it takes only common sense to realize that atheism goes hand in hand with unfettered individualism.

Modern times are times of hostility to religion; it is no happenstance that they have also seen the birth of radical individual freedom. Epicurus long ago taught that there could be no society among men but that which obtains among small circles of friends; it is no happenstance that he also taught that there are no gods.

Inasmuch as a nation is a cohesive body whose members are the individual citizens, it needs some sort of cementing mortar to bridge the gap that the freedom of each unavoidably creates between them, and all the more as such freedom becomes absolute. Building such a bridge presupposes that all citizens participate in something . . . [that] transcends them all . . . binding them without oppressing them.

And since this is the very definition of a religious belief, it must be concluded that no nation exists that is not upheld by some religious faith. Nations are terrestrial vessels anchored in the skies.

But Europe used to believe in a religion that (even though the passions of men led them too often to ignore it) preached a love of one’s neighbor that did not imply hatred of foreigners. Indeed, classic orthodox Christianity always taught men to love their own countries together with all men, irrespective of their nationalities. But then it meant that, just as is the case for individuals, nations – though distinct entities – felt they were parts of the same world; not a political one, since they all retained some sort of independence, but a spiritual one, whose unity was manifested at the time by their common compliance with one spiritual authority.

Today, we have something paradoxically called the United Nations, whose more or less goal is to unite mankind in a worldwide society built on the ruins of all nations. It is our Tower of Babel.”

(The Agony of Nations in the West, Claude Polin, Chronicles, February 2016, excerpts, pg. 13)

The 1861-65 war destroyed the American South’s economic, legal, political and social systems, and afterward ruled the region with proconsuls dispatched from Washington. From this aftermath of war came the invented view of the desolated South – a section known in antebellum times for providing the majority of presidents and exemplary political thinkers — as an uncouth and backward region steeped in laziness and illiteracy.

Bernhard Thuersam, www.Circa1865.com

Stereotyping the South Up North

“Strange notions have developed about the South. It is taken for granted that Southerners are a slow and lazy people. The Abolitionists and Radical Reconstructionists conveyed the impression — and fiction has augmented it — that plantation whites lived in idleness and ease while black hands did labor and chores for them.

The white women of the South are still thought to be lazy, pampered, helpless, spoiled creatures. All this comes out in fiction, shows, movies, and in street corner and parlor conversations. A conventional Southerner has evolved. He is tall, lanky, lazy, slow — except with the trigger finger — speaks with a drawl, says “you all” even to one person, and possesses a sort of insolent dignity.

The South is regarded as a backward, ignorant, hot-tempered and violent section, especially in its dealing with Negroes. Extravagant fictional treatments of the extremes of Southern life are quite generally accepted as accurate cross-section views of the South. In one of the most violent scenes of “Tobacco Road,” as played in a New York theater, an intelligent-looking woman remarked to her companion: “That’s just like the South.” Asked what part of the South she was from, she squirmed in her seat and soon left the theater.

Mud on the Stars, a lurid and patently preposterous story about life in Alabama, was well-received by New York critics. One reviewer said that it is from such men as the author of this filthy story, who incidentally is a self-confessed rake that we must look for information about the real South.

When Stars Fell on Alabama, a grotesque portrayal of life in Alabama appeared, it was widely acclaimed in the North, but when the same author wrote a similar book – Genesee Fever – about a certain community in New York State, the reviewers and commentators of New York were quick to point out that it represented a purely local and extreme situation in the State, and that it contained extravagant overtones and distortions for the purpose of literary effect.”

(One Hundred Years of Reconstruction, A.B. Moore, 1943, Southern Historical Society Addresses)

Not recognizing the withdrawal of States from the voluntary Union in 1861, English-born Sen. Edward D. Baker of Oregon responds below to former Vice President and then-Senator John Breckenridge of Kentucky. Baker reportedly appeared in the Senate that day in the uniform of a Northern colonel, riding whip and saber in hand, claiming that secession was rebellion and that South Carolina was to be subjugated into loyalty. This, ironically from a man born in England, was what George III attempted some 85 years earlier.  Baker was mortally wounded at Ball’s Bluff in October 1861.

Bernhard Thuersam, www.Circa1865.com

Subjugating Rebellion into Loyalty

“The senator from Kentucky stands up here in a manly way in opposition to what he sees is the overwhelming sentiment of the Senate, and utters reproof, malediction, and prediction combined. Well sir, it is not every prediction that is prophesy.

I confess Mr. President, that I would not have predicted three weeks ago the disasters which have overtaken our arms; and I do not think [if I were to predict now] that six months hence the senator will indulge in the same tone of prediction which is his favorite key now. I would ask him what would you have us do now — a Confederate army within twenty miles of us, advancing, or threatening to advance, to overwhelm your government; to shake the pillars of the Union; to bring it down around your head in ruins if you stay here?

Are we to stop and talk about an uprising sentiment in the north against the war? Is it not the manly part to go on as we have begun, to raise money, and levy armies, to organize them, to prepare to advance; when we do advance, to regulate that advance by all the laws and regulations that civilization and humanity will allow in time of battle? To talk to us about stopping is idle; we will never stop. Will the senator yield to rebellion? Will he shrink from armed insurrection? Will his State justify it? Shall we send a flag of truce?

When we subjugate South Carolina, what shall we do? We shall compel its obedience to the Constitution of the United States; that is all. Why play upon words? We do not mean, we have never said, any more. If it be slavery that men should obey the Constitution their fathers fought for, let it be so.

We propose to subjugate rebellion into loyalty; we propose to subjugate insurrection into peace; we propose to subjugate Confederate anarchy into constitutional Union liberty. When the Confederate armies are scattered; when their leaders are banished from power; when the people return to a late repentant sense of the wrong they have done to a government they never felt but benignancy and blessing — then the Constitution made for us all will be felt by all, like the descending rains from heaven which bless all alike.

Sir, how can we retreat? What will become of constitutional government? What will become of public liberty? What of past glories? What of future hopes? No sir; a thousand times no, sir! We will rally . . . we will rally the people, the loyal people, of the whole country. They will pour forth their treasure, their money, their men, without stint, without measure.”

(Edward D. Baker, Senate speech of August 1, 1861. The World’s Famous Orations, W.J. Bryan, editor, Funk & Wagnall’s, 1906, pp. 3-8)

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)

“. . . Edward A. Pollard, a Virginia critic of [Jefferson] Davis, chronicler of the war and bewailer of the “lost cause,” took courage in 1868 to write his most significant book, The Lost Cause Regained.

The folly of politicians, he said, had made the South defend slavery seemingly “as a property tenure, or as a peculiar institution of labour; when the true ground of defense was as of a barrier against a contention and war of the races.” [Pollard wrote:]

“It has been curiously reserved for the South to obtain AFTER the war the actual experience of oppression, and of that measure a despotism which would have amply justified the commencement of hostilities. If it fought, in 1860, for principles too abstract, it has superabundant causes for rebellion now, which although they may not, and need not produce another war, yet have the effect to justify, in a remarkable way, the first appeal to arms.”

(The Central Theme of Southern History, Ulrich B. Phillips; Slavery As A Cause of the Civil War, E. Rozwenc, DC Heath and Company, 1949, pp. 25-26)

In 1869, former Confederate Gen. John D. Imboden served as Domestic Immigration Agent for Virginia with his mission being to attract English settlers to that State. Goldwin Smith (1823-1910) was a British historian, journalist, and taught at Oxford. He expressed pro-Northern sentiments during the war, and promoted the annexation of Canada by the North, as suggested in his last paragraph. Though this was threatened by the North as retaliation for English support of the Confederacy, Smith saw as predestined the domination of North America by one great Anglo-Saxon country.

Bernhard Thuersam, www.Circa1865.com

English Emigrants Desired by Virginia

January 31, 1870, 1806 Chestnut Street, Philadelphia, U.S.

“My Dear Lord Salisbury,

As you were a great friend of the South, the promoters of English emigration to Virginia, at the head of whom is the Confederate General Imboden, will probably bring their scheme under your notice. In case they do, I venture to commend it to your consideration.

What may be the cause, or with whom the blame may rest, matters not. The fact is that the feeling against England in the Northern States is now so strong that this is to Englishmen not only a foreign country, but a hostile country. I cannot help being sensible of this, notwithstanding the kindness with which I am personally received. It is desirable, therefore, to turn the current of emigration, as far as possible, to a more friendly shore.

To turn it to Canada is, I am afraid, only to turn it to the States through a circuitous channel. The Canadian climate is very severe; the winter almost eats up the summer; and, the soil being heavily timbered, the work of clearing is very hard. It is, for the most part, more a country for the lumberer than for the farmer.

In Virginia the climate is temperate, and the soil, I am credibly assured, excellent – at least in the western parts of the State, and particularly in the Shenandoah Valley; for in the east a good deal of it is injured, though I suppose not irretrievably, by slave labour.

The people are thoroughly friendly and extremely anxious to receive English emigration instead of carpetbaggers with their train of emigrants of the lower class.

Politically, an English community in Virginia, with that great State in so commanding a position, would be the best counterpoise to the Irish vote and the anti-English sentiment of New England; and now at all events it is to the growth of the English element in the Union that you must trust for security against American aggression.

Tory and Southerner as you are, I have sometimes, during the Anglo-American controversy, half-wished that you were the representative of England . . . [that] Government, by first curtly refusing any reparation [to the US], and then getting on the slide of concession, has filled the Washington politicians with evil hopes, and I do not know how it may end.

The Annexation [of Canada] passion is, I fear, decidedly gaining ground. Forgive this inroad on a statesman’s time.

Your very truly, Goldwin Smith.”

(A Selection from Goldwin Smith’s Correspondence . . . Written between 1846 and 1910; Arnold Haultain, editor, Duffield & Company, 1913, excerpts pp. 19-20)

Like other conquered Southern States, South Carolinians at the close of the war found themselves within a Union not of their choosing, yet they we not “of” this Union. Their governor was a prisoner of war, they were under martial law, and would be soon under the rule of their former servants.  The Robert Small (or Smalls) mentioned below is credited with the theft of the steamer Planter during the war, and delivering it to the Northern fleet which was aiding and abetting the enemy, and treason against South Carolina.

Bernhard Thuersam, www.Circa1865.com

South Carolina’s Legislature of Crooked Aliens

“In the [postwar South Carolina] Senate Chamber sat Major Corbin . . . a captain of Vermont troops badly wounded in the war and for a time in Libby prison, he had remained in military service until the end of the war and was then ordered to Charleston in charge of the Freedmen’s Bureau.

In the same body with Major [David T.] Corbin sat Robert Small, who while still a slave had won national fame as a pilot by running the Planter out of Charleston harbor to the Federal fleet. Some of the local black folk said that he did this in fear and trembling at the mouth of a loaded pistol leveled by a braver and more determined slave, one who never shared in the fame of the Planter exploit and was big enough not to care to.

Another of those South Carolina Senators was Beverly Nash. Black as charcoal . . . he was the perfect type of the antebellum ideal of a “white gentlemen’s colored gentleman.”

Besides those three . . . Senators, there was Leslie, once a member of the New York legislature, shrewd, crooked and cynical. And there was  [B.F.] Whittemore [of Massachusetts], who had got national notoriety while in Congress by selling a West Point cadetship for money instead of the customary price which was influence.

For the rest, the Senate floor was occupied by whites and blacks . . . But there was nobody of the old romantic type of South Carolina aristocrat. At the president’s desk sat a Negro, Lieutenant-Governor A.J. Ransier, who presided with dignity . . . A year or two before he died and [he was] working as a street cleaner in Columbia . . .

In the [House] chamber at the other end of the capitol building . . . were a great body of members, mostly Negroes. The body as a whole was in a legislative atmosphere so saturated with corruption that the honest and honorable members of either race had no more influence in it than an orchid might have in a mustard patch.”

(A “Carpetbagger” in South Carolina, Louis F. Post; Journal of Negro History, Carter G. Woodson, editor, Volume 10, January 1925, excerpts, pp. 15-17)