Circa1865

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)

Far from being united against Southern independence, the North endured military rule as Lincoln saw fit to silence criticism of his war policy against Americans by arresting newspaper editors and dissenters, including the grandson of Francis Scott Key. Even the Supreme Court feared arrest from a president who clothed himself in powers not granted by the Constitution.

Bernhard Thuersam, www.Circa1865.com

A Union of Willing States, Not Conquered Provinces

“Many [antebellum Northerners] . . . saw the Union in more conditional terms, as an agreed-upon relationship, not one resting upon coercion or compulsion. Millions of Northern Democrats, for example, denied the validity or value of a Union held together by force. Many felt so strongly about the invalidity of a coercive Union that they resisted and defied the Lincoln government during the Civil War in order to proclaim their views.

Even nationalists of an antislavery point of view could have doubts about a Union maintained by force. In 1801 when John Quincy Adams feared that Aaron Burr might break up the recently-created union he was not sure that it ought to held together by force. “If they break us up – in God’s name, let the Union go,” he wrote. “I love the Union as I love my wife. But if my wife should ask and insist upon a separation, she should have it though it broke my heart.”

Sixty years later another son of Massachusetts and an abolitionist, Wendell Phillips, used the wifely metaphor again – this time in confronting an actual breakup of the Union. Phillips spoke after secession had taken place. “A Union is made up of willing States, not of conquered provinces,” he said. “There are some rights, quite perfect, yet wholly incapable of being enforced. A husband or wife who can only keep the other partner within the bond by locking the doors and standing armed before the door had better submit to peaceable separation.”

(The Other South, Southern Dissenters in the Nineteenth Century, Carl N. Degler, Harper & Row, 1974, page 121)

With the South out of Congress since 1861 and no Southern leadership to provide a conservative and responsible voice in US government, the predictable occurred. As a soldier Grant was a butcher who sent wave after wave of new recruits to wear down the thin Southern brigades; as a politician, Orville H. Browning of Illinois described Grant as “weak, vain, ignorant, mercenary, selfish and malignant”; that he was surrounded by corrupt and unprincipled men and that his reelection would be a great calamity to the country.” Grant’s election in 1868 was achieved with a few hundred thousand freedmen votes, they herded to the polls by the Republican’s terrorist Union League.

Bernhard Thuersam, www.Circa1865.com

Union Saved for Corrupt Republican Party Hegemony

“The eight years of Grant’s administration rocked with one scandal after another. Citizens defrauded the government in the acquisition of land and in claims for [Northern veteran] pensions; contractors supplying the army and navy were often venal; and unscrupulous lawyers levied toll on ignorant and defenseless Indians.

Members of Congress were bribed and disgraced. Cabinet officers were investigated and impeached. Subordinate officials and employees were revealed in outright betrayal of public trust. Never had the Republic sunk to so low an estate of official morality.

During the 1870s there was both incompetence and dishonesty in the large customhouses; discipline and integrity among the navy-yard labor forces were at a low ebb; the Indian service had been roundly condemned by [James] Garfield; land agents connived at irregularities, and surveyors made fraudulent claims for work not performed.

The tone of the eight years of Grant’s administration was . . . set by a small number of weak and unreliable persons holding seats in Congress and in high executive office. It was during these years that the most resounding scandals occurred, not only in Washington but in many States and cities. When the mighty wandered far from the paths of rectitude, it was not surprising that some of the lesser ranks followed their example.

To a few of the scandals we turn . . . The Credit Mobilier . . . originally organized to finance railroad construction, [it] fell into the control of a group of adventurers, including a member of Congress, Oakes Ames. The corporation was awarded a lucrative but fraudulent contract for the . . . [Union Pacific Railroad and disgraced Grant’s] Vice Presidents Colfax and Wilson.

Laxness or corruption in the award of Indian trading posts had been suspected for some time under General [William] Belknap’s administration of the War Department. [Secretary of the Navy George M. Robeson levied] percentages on . . . contractors’ engagements with the navy, [and] Robeson grew rich. [Secretary of the Treasury John D. Sanborn, a protégé of Benjamin Butler, siphoned money destined for the Internal Revenue Service].

The most dramatic and perhaps the most damaging evidence of corruption during the Grant administration involved the evasion of internal revenue taxes on distilleries. Fraud had long been suspected [and persons involved] included General John A. McDonald, collector of internal revenue in St. Louis . . . other collectors, the chief clerk of the internal revenue division of the Treasury Department in Washington [and] General Orville Babcock, President Grant’s private secretary, who was subsequently indicted but who escaped conviction.”

(The Republican Era, 1869-1901, A Study in Administrative History, Leonard D. White, Macmillan Company, 1958, excerpts pp. 366-373)

Richmond citizens quietly observed Independence Day, 1865 with enemy troops occupying their city — celebrating their triumph in vanquishing the American defenders of that city.

Bernhard Thuersam, www.Circa1865.com

Occupied Richmond, July 4th 1865

“The 4th of July may be said to have been celebrated in Richmond this year. Cannon were fired at morning, noon and night. A few Chinese crackers were fired off by vagabond boys, white and black, at the corners of the streets in the early morning and in the evening, their pyrotechnic resources, I take it, being too scanty not to make it advisable to husband them to closely.

In the morning, a flag was hoisted on the Spottswood Hotel, and a short speech made from the roof of the building by [occupation forces commander] General Osgood. Somewhat later in the day a small crowd, made up mainly of Negroes and Union soldiers, with a sprinkling of citizens and children, congregated in the Capital Square. A lady was introduced to the assembly and read the Declaration of Independence, but in so low a tone and amid such noise of talking and walking about as made it quite impossible for anyone to hear her. The conclusion of her reading was marked by music from a military band which was in attendance.

Speeches were then made by a surgeon and two chaplains, and after a benediction the company dispersed. No applause was elicited by any of the speakers. The soldiers evidently were in the character of onlookers; the Negroes were doubtful if they were expected to applaud or would be allowed to do so (they were carefully removed by the soldiers detailed as police from the crowded steps near the speakers’ stand); and as for the citizens — to ask any men, Unionist or secessionist, to hear such speeches and applaud them would be asking too much.

All places of business were closed throughout the day, but the city wore no holiday aspect. That part of the rebel population which appeared in the streets were seemingly indifferent spectators of what went on around them. The boys and the Negroes, and the Union soldiers in a graver way, alone seemed to enjoy the occasion.”

(The South As It Is, 1865-1866, John Richard Dennett, Viking Press, 1967, pp. 9-10)

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)

Lincoln instituted a national banking system which “developed into something that was neither national nor a banking system” and more represented a loose organization of currency factories “designed to . . . [serve] commercial communities and confined . . . almost entirely to the New England and Middle Atlantic States.” This system was more concentrated in New York and fraught with abuses, and superseded by the even more abusive Federal Reserve Act of 1913.

Bernhard Thuersam, www.Circa1865.com

The Anticipated Profits of Next Year’s Pay Checks

“July 3, 1930

Mr. McFadden: “Mr. Speaker and gentlemen, time and events have arrived at a point where we should no longer deceive ourselves concerning the business situation. Continued statements of unfounded optimism will have only an unhappy effect upon the minds of millions of our citizens who are now unemployed and who, in the circumstances, must continue to be unemployed for many months to come. The economic condition in which we find ourselves is too sustained and deeply seated to be met by pronouncements that it does not exist.

Let us face the truth – that we and the world are undergoing a major economic and business adjustment which is and will be both drastic and painful. These consequences will be particularly severe in the United States, because they will force many people to recede from the standards of living and expenditure attained during the past 14 years.

Some part of this condition is the natural consequence of the operation of basic economic laws which function with little regard for human legislation. A large part is due to mismanagement of our national affairs. A still larger part is due to a deliberately contrived and executed program which has as its object the impoverishment of the people of the United States.

The end of the World War found us with a greatly expanded industrial and credit structure, to large, by far for the requirements of our national needs as the latter existed before the beginning of the war period of abnormal consumption. It was clearly a time to halt and to analyze fundamental economic facts. We did not do this.

Rather we chose to proceed with our abnormal production and to stretch the limits of credit still further. War production and its profits had made Americans drunk with power, and ambition for more power. Luxuries developed in the disorganization of war became necessities with the reestablishment of peace.

The American peop0le entered upon a decade in which the whole structure of their lives was to be passed upon the principle of discounting the future. A vast system of installment credit sprang into life almost overnight, aided by the optimism of the Federal Reserve system. The automobile industry expanded more rapidly and to greater size than any industry had expanded in history.

The public was encouraged by advertising and propaganda to buy beyond its immediate means. Further industrial expansion was financed by the same expansion of credit which made installment buying possible. Consumption was expanded and financed upon the consumer’s promise to pay and production was expanded upon by capitalizing the producer’s hope that the consumer would keep that promise.

In the period between 1920 and the present time we experienced the full use and purpose of the credit machinery built up with the Federal Reserve system. It was but a logical development that anticipated profits should be capitalized as anticipated production and consumption had been capitalized – and that the Federal Reserve system should in turn finance tis capitalization of anticipated profits.

The entry of millions of Americans of moderate means into stock-market speculation [was] a natural consequence of the policy of expansion to which we had committed ourselves. It was also a logical development that the Federal Reserve should expand broker’s loans to make possible a huge inflation of the business of speculating in securities on margins.

All this brought the country to a point where the individual was living beyond his personal means, buying more than he could afford on his hope that he could afford to pay for it in the future and then speculating in the hope that he could make enough profit to pay his debts when they came due. In brief, the greater part of the American business structure was built upon the anticipated profits of next year’s pay checks.”

(Basis of Control of Economic Conditions, the Collective Speeches of Congressman Louis T. McFadden, Omni Press, 1970 pp. 64-66)

The former slave-trading and slave-holding North forgot it was theirs and British ships which brought the African to America, a Massachusetts inventor who perpetuated slavery with his gin, and Massachusetts mills which sought large supplies of slave-produced cotton. Had New Englanders wished to end slavery, they had only to end their demand for slave-produced cotton. The extract below is from Mr. Hayne’s 1830 debate with Daniel Webster on the nature of the federal union, and Hayne clearly delineates the origin of African slavery in the Southern States, who profited from the nefarious trade, and who did their Christian best with what they had inherited.

Bernhard Thuersam, www.Circa1865.com

An 1830 View of Slavery in the South

“Sir, when arraigned before the bar of public opinion on this charge of slavery, we can stand up with conscious rectitude, plead not guilty, and put ourselves upon God and our country. We deal in no abstractions. We will not look back to inquire whether our fathers were guiltless in introducing slaves to this country. If an inquiry should ever be instituted in these matters, however, it will be found that the profits of the slave trade were not confined to the South.

Southern ships and Southern sailors were not the instruments of bringing slaves to the shores of America, nor did our merchants reap the profits of that “accursed traffic.” But, sir, we will pass over all this.

If slavery, as it now exists in this country be an evil, we of the present found it ready made to our hands. Finding our lot cast among a people, whom God had manifestly committed to our care, we did not sit down to speculate on abstract questions of theoretical liberty. We met it as a practical question of obligation and duty.

We resolved to make the best of the situation in which Providence had placed us, and to fulfill the high trust which had developed upon us as the owners of slaves, in the only way in which such a trust could be fulfilled without spreading misery and ruin throughout the land.

We could not send them back to the shores from whence their fathers had been taken; their numbers forbade the thought, even as we did not know that their condition here is infinitely preferable to what it possibly could be among the barren sands and savage tribes of Africa . . .

[With the false philanthropy of Northern abolitionists and the] shedding of tears over sufferings which had existence only in their own sickly imaginations, these “friends of humanity” set themselves systematically to work to seduce the slaves of the South from their masters. By means of missionaries and political tracts, the scheme was in great measure successful. Thousands of these deluded victims of fanaticism were seduced into the enjoyment of freedom in our Northern cities. And what has been the consequence?

Go to these cities now, and ask the question. Visit the dark and narrow lanes, and obscure recesses, which have been assigned by common consent as the abodes of those outcasts of the world — free people of color. Sir, there does not exist, on the face of the whole earth, a population so poor, so wretched, so vile, so loathsome, so utterly destitute of all the comforts, conveniences and comforts of life as the unfortunate blacks of Philadelphia, and New York and Boston.

Sir, I have had some opportunities of making comparisons between the condition of the free Negroes of the North and the slaves of the South . . . Sir, I have seen in the neighborhood of one of the most moral, religious and refined cities of the North, a family of free blacks, driven to the caves of the rock, and there obtaining a precarious subsistence from charity and plunder.”

(The Webster-Hayne Debate on the Nature of the Union, Herman Belz, Editor, Liberty Fund, 2000, pp. 44-46. Speech of Robert Y. Hayne of South Carolina, January 25, 1830)

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)

Horatio Seymour of New York always refused to consider any aspect of African slavery as a paramount issue in the country; He felt that “for seventy years the Union had existed with slavery; it need not perish overnight because of it.” He rightly saw anti-slavery rhetoric against the South as designed to divert attention from speculation and corrupt politics in the North.

Bernhard Thuersam, www.Circa1865.com

Virtue More Dangerous Than Vice

“As one looks back at the antics of the abolitionists – Garrison burning a copy of the Constitution in a public square; Gerrit Smith playing “possum” at an asylum while the John Brown he had encouraged was found guilty of treason and hauled out to be hanged; self-righteous ranters pleading from their pulpits for the export of rifles to Kansas; industrious Mrs. Stowe embalming the slippery sentimentality of her half-truths in the lachrymose pages of Uncle Tom’s Cabin; even Democratic David Wilmot trying to repair with his famous proviso the political fences he had broken down with his vote for a lower tariff . . .

[T]here comes to mind the words of the ancient philosopher which a president of Yale was always happy to remember”: “Virtue is more dangerous than vice because the excesses of virtue are not always subject to the restraints of conscience.”

(Horatio Seymour of New York, Stewart Mitchell, Harvard University Press, 1938, pp. 229-230)