Circa1865

Crucial to the success of Lincoln’s creation of fiat money and bond-sales was master publicist and financier Jay Cooke. The latter “subsidized editors and columnists of most of the important papers of the nation” whose journalists were still receiving bribes from him when he pushed for bond redemption in gold. At the end of the war, Cooke worked hard to convince the Northern populace that their onerous debt was justified and “His efforts were supplemented by the Loyal Publications League, which was resuscitated in 1868 in order “to spread throughout the country correct views upon the subject of taxation and currency.”

Bernhard Thuersam, www.circa1865.org

Radical Ideology Printed on “Lincoln Green”

“The cruel quandary which the effort to rein in the lower classes created for radicalism became enmeshed in the debate over the greenback currency. Despite all its complexities, the currency question typified the fate of Radical doctrines, for here the Republican party repudiated its own radical handiwork.

Both the plan for a managed fiat currency and the rhetoric subsequently used in its defense were the offspring of the Radical wing of the Republican party. The legal tender bill was taken up by Congress at the end of 1861 because gold loans floated by the Treasury had exhausted the coin supply of the banks and forced them to suspend specie payments.

The Union was confronted by the prospect of runaway bank-note inflation and the sale of bonds below par value, either of which would have raised the cost of prosecuting the war toward a prohibitive level. At this juncture, Elbridge Spaulding, a Buffalo banker and Republican congressman, proposed a solution in defiance of the national traditions of States’ rights, hard money, and bank control of currency: that the federal government should issue its own interest-free notes receivable for all public dues and legal tender for all private transactions.

The value of these notes was to be stabilized by permitting their conversion into government bonds bearing 6 per cent interest, which were payable in five years and redeemable in twenty, commonly known as 5-20s’.

This majestically simple scheme met with furious opposition from the Democrats and many bankers. Pendleton, Vallandigham, Conkling and Justin Morill stood shoulder to shoulder against the bill; but its Radical supporters, led by Thaddeus Stevens, enlisted enough Conservative (and even banker) support for the scheme as a temporary war measure for it to pass the House 93 to 59. Senate opponents were strong enough to graft on an amendment providing for payment of interest on the 5-20 bonds in coin.

This action created the problem of how to raise the promised gold. [but compromise established a dual-currency system]: gold for the importer [tariffs] and bond-holder, greenbacks for everyday domestic purposes.

As the war continued and governmental needs for borrowed funds soared, both the currency supply and the debt structure grew ever more complex. By the war’s end the country was faced with rampant inflation, constant manipulation of gold prices by speculators, a morass of different bond issues, and four major forms of currency – greenbacks, specie, national bank notes, and State bank notes. The task of unraveling the mess fell on Treasury Secretary Hugh McCulloch . . . [and] with authority granted by Congress in March 1866, [he] initiated a steady withdrawal of greenbacks from circulation, and redemption of short-term notes.

[A] bill introduced by Robert Schenck to force a halt to the Treasury’s contraction policy enlisted the support not only of Stevens, Butler and Logan, but also Senator Sherman and Jay Cooke, and of numerous Democrats. The measure swept the House by a vote of 127 to 14, and in the Senate only four Conservative Republicans voted against it. The Conservative economic program had been thoroughly defeated.

Hard money advocates characterized their own position as scientifically sound and moral, and that of their [fiat money] foes as demagogic and dishonest. Speaking for Spaulding’s bill in 1862, Henry Wilson had described the debate as “a contest between brokers and jobbers, and moneychangers on the one side, and the people of the United States on the other.”

Not to be outdone, John Bingham charged the bill’s foes with misconstruing the Constitution for “the purpose of denationalizing the people . . . [and stripping] the power of the people over their monetary interests in this hour of national exigency.”

Here was the Radical ideology in its purest form, printed, as it were, on bills of “Lincoln green.” Understandably, Henry Carey attributed both the economic vigor and the patriotic spirit of the nation to protection and greenbacks . . . Thaddeus Stevens [had] judged the whole national banking system as a “mistake,” [and] declared: “Every dollar of paper [money] in circulation ought to be issued by the Government of the United States.” [Republican editor Benjamin Bannon of Pennsylvania] devised a scheme for the circulation of greenbacks as the exclusive currency of the nation, with national banks serving as distribution centers only.

From the tariff of 1846 until the Republican legislative triumphs of 1862, Bannan argued, nonproductive capital had ruled the land, and now it was again “striving to gain the ascendancy.”

(Beyond Equality, Labor and the Radical Republicans, 1862-1872, David Montgomery, University of Illinois Press, 1981, pp. 340-345)

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 not as harmonious as abolitionists and accounts of the mythical underground railroad claimed.

Bernhard Thuersam, www.Circa1865

Rochester’s Spirit of Hate

“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)

In colonial Fairfield, Connecticut, free and slave Africans worked the ships that delivered New England rum and Yankee notions to Africa — traded to African slave traders for more slaves. Towns like Fairfield grew affluent producing goods, barrel staves, foodstuffs and trinkets for the West Indies, where the majority of the slaves acquired would end up. As a young man Frederick Douglass worked the Baltimore shipyards helping to build fast slavers for New England merchants for the same purpose.

Bernhard Thuersam, www.circa1865.org

Connecticut and the Slave Trade

“Connecticut conducted another census in 1774. With a population of 4863, Fairfield was the eleventh largest town in Connecticut in 1774. The 4863 persons included 4544 whites and 319 blacks, giving Fairfield the highest percentage of black population in the colony. Fairfield’s growing trade encouraged the growth of its black population. Approximately three out of every four blacks in Fairfield in the 1770’s were slaves. Most of them were men who worked as laborers or household servants; a smaller number of women were household servants; and even a smaller number were children.

Most slaves were denied the pleasure of residing, with or without the benefit of marriage, with a member of the opposite sex. Captain David Judson owned a married couple and their child, but more typical was Hezekiah Gold, who owned four men, “a wench,” a young man, and two boys. Slavery was a luxury that Fairfield came to afford as it became more affluent.  Most free blacks in Fairfield worked as laborers, either on the docks or on board ship.”

(Fairfield, The Biography of a Community, Thomas J. Farnham, Fairfield Historical Society, 1988, pp. 71-72)

An irony of history has the doctrine of secession originating in the South when it was first advanced by New England over the issue of Louisiana’s admission to Statehood. Jefferson and Madison, both Southerners, opposed secession; New England Federalists demanded it.

Bernhard Thuersam, www.circa1865.org

New England Federalist Secession Doctrine

“The final political phenomenon to arise out of the North-South competition of the 1790s was the doctrine of Secession. It represented the death rattle of the Federalist party. The pivotal year was 1800 when the Democratic leaders Jefferson and Burr succeeded in putting together a coalition of the have-nots of the country – the agriculturalists of the South and the proletarians of the Northern cities. They won control of the nation.

The Federalist party survived another sixteen years, although it never again won control of the House, Senate or presidency. It did not take defeat well.

Barely three years after the Democratic rout, Northern Federalists began arguing for the secession of the New England States from the Union. There was nothing understated about their secessionist position. It was widespread, and if it could not be done peaceably, they said, it should be done violently.

Listen to one of the many secessionists, Josiah Quincy III, scion of the New England Quincy’s, future mayor of Boston and future president of Harvard University. In 1811 he was a thirty-eight-year-old congressman standing opposed to the admission of Louisiana as a State:

“It is my deliberate opinion,” he said, “that if this bill passes, the bonds of this union are virtually dissolved, that the States which compose it are free from their moral obligations, and that as it will be the right of all, so it will be the duty of some to prepare, definitely, for a separation; amicably if they can; violently if they must.”

One man who listened carefully that year was a freshman congressman from South Carolina. He was John C. Calhoun, who had been taught the secessionist doctrine in the law schools of New England, who had listened to it in the Congress, and who would one day carry it back down South . . . . Meanwhile, it is an unfair stroke that history has identified the South with secession when in fact the earliest and clearest arguments against it were proposed by Jefferson and Madison.

The creators of secession doctrine, and the teachers of it from 1800 to 1817, were New England Federalists.”

(The Natural Superiority of Southern Politicians, A Revisionist History, David Leon Chandler, Doubleday & Company, 1977, pp. 114-116)

Marylander Reverdy Johnson defended Mary Surratt in the Lincoln assassination conspiracy trial, argued that his client and others charged were civilians, and that the military commission Judge Advocate John A. Bingham convened had no jurisdiction – but to no avail. Major Bingham was a Pennsylvanian and Radical Republican appointed by Lincoln. In contrast to Bingham, Alexander H. Stephens and Jefferson Davis were the ablest constitutional scholars in the country.

Bernhard Thuersam, www.circa1865.org

The Life and Soul of the United States Government

“Read Judge Advocate Bingham’s argument before the Military Commission in Washington in reply to Hon. Reverdy Johnson. It is rhetorical sophistry, specious and plausible to the careless and uninformed reader; but it is utterly fallacious. It affects me in nothing so much as in the sadness it produces when I view it as but an additional evidence that Power, in its incipient and dangerous strides in trampling on the liberties of a country, is never wanting in able and brilliant advocates and defenders.

[Bingham’s] main ground, [is] that the Constitution . . . is intended and made for peace only and not for war, is fundamentally wrong. The Constitution was made for war as well as peace. To the various questions put by the Judge Advocate: Whether in war, men are not slain, prisoners captured, property taken, all without due process of law; the answer is, that they are not; no more than a man who, in peace, puts himself in defiance of the law officers, and is shot down by the sheriff or his posse: that is due process of law in such case. So in war.

In the cases of rebellion and insurrection, the only military forces known to the Constitution are such as are called out in the nature and character of the posse comitatus. For their government, when so called out, laws are made, as well as for the government of such permanent force as may be kept on hand. What a soldier rightfully does in taking life in battle he does according to law prescribed, and orders given in accordance with that law.

No soldiers, even in war, can be rightfully quartered on any man’s premises except in accordance with law previously described. This is an express provision of the Constitution. The idea that the Constitutional guarantees are all suspended in war and that during war martial law takes the place of the Constitution is monstrous.

The Judge Advocate’s remark about the natural principles of self-defence, and that the nation, as a man, may resort to any means to save its life, is rhetoric and not argument; its sentiment is ruinous to liberty. The life and soul of the United States Government is the Constitution and the principles with all the rights therein guaranteed. Whoever strikes at them, or at one of the least of them, strikes a deadly blow at the life of the Republic.

Nothing can be more absurd than that the life of a man can be preserved by an extinction or suspension of all the vital functions of his organism; and yet this is no more absurd than is the argument of those who speak of warding off a blow at the life of the nation, by a suspension or violation of the guarantees of the Constitution.”

(Recollections of Alexander H. Stephens, His Diary, Myrta Lockett Avary, LSU Press, 1998 (Original 1910), pp. 291-293)

Alexander H. Stephens of Georgia thought African slavery “one of the greatest problems of this interesting age,” and wondered “what is to be the fate of the poor African God only knows. His condition as a slave is certainly not a good one” though far better in the American South than in “his own barbarous clime.” Stephens believed the problem of Africans selling their own people into slavery to be a Christian nation’s duty to solve, and this was something European nations fairly accomplished in the late 19^th century.

Bernhard Thuersam, www.circa1865.org

Forebodings of Unequal Equality

“I see in the Boston Herald that there was a riot yesterday in Washington, D.C., between Federal soldiers and Negroes; attack by the former upon the latter; 150 or 200 soldiers engaged. The military, or provost guard was called on to suppress it. Several were wounded and some killed on both sides.

Is this but the beginning of deplorable conflicts hereafter to be enacted between the races, until one or the other is extinguished? Sad forebodings haunt me. I apprehend intestine strifes, riots, bloodshed, wars of the most furious character, springing from antipathies of castes and races.

Equality does not exist between blacks and whites. The one race is by nature inferior in many respects, physically and mentally, to the other. This should be received as a fixed invincible fact in all dealings with the subject. It is useless to war against the decrees of nature in attempting to make things equal which the Creator has made unequal; the wise, humane, and philosophical statesman will deal with facts as he finds them. In the new order of things, I shall hope and, if permitted, strive, for the best; yet I cannot divest myself of forebodings of many evils.

My own judgment was that those who elected to go to a free State would not be so well off as those who should remain at home with masters of their choice. Still, that was a matter for their own decision and which I did not feel at liberty to control.

So far as my own Negroes are concerned, there is nothing now that would give me more pleasure, under the changed order of things, than to try the experiment and see what can be done for them in their new condition.

(Recollections of Alexander H. Stephens, His Diary, Myrta Lockett Avary, LSU Press, 1998 (Original 1910), pp. 207-208)

As in the postwar South, the Republican party believed the votes of Rhode Island’s colored population were for sale – the following early 1880s resolution was apparently aimed at black Republican voters: “Resolved: That we will hold in contempt, as a traitor to mankind and his race, that man who will permit his vote to be influenced by a tender of money or any other corrupting influences.”  It should be remembered that Providence, Rhode Island was the highly-profitable center of the slave trade in North America in 1750.

Bernhard Thuersam, ww.circa1865.org

Free Colored People Unhappy in Rhode Island

“Colored Voters: The colored voters of Rhode Island, who have long complained of the treatment which they have steadily received at the hands of the Republican party in the State — they being unrecognized as citizens, neglected and totally ignored in regard to their political rights, excepting that of suffrage, which is eagerly sought for — assembled in convention at Newport on the 18th of October, 1882, to express and make known their sentiments.

Several public speakers of high repute among them addressed the convention, set forth in plain language, besides other causes of complaint, that the colored voters were highly insulted by the [Republican] party in power, as they were not considered worthy being voted for, for any public offices in the gift of the people; declaring also that henceforward they intended to act independently of the Republican party on all occasions, but vote for the person, whatever the party to which he might belong, who would recognize them as citizens.

The colored people of the State numbered 6271 in 1875, and 6592 in 1880.”

(Rhode Island, Appleton’s Annual Cyclopedia, 1882, Appleton & Company, pp. 791-792)

The parallels between 1776 and 1861 are many, as in the latter case Americans in the South followed the very spirit of Jefferson’s words in the Declaration of Independence regarding the right of self-government and the consent of the governed. They wanted to end the galling economic dependency on the Northeastern cotton mills and financiers as their fathers ended economic dependency upon England.

Bernhard Thuersam, www.circa1865.org

Political Independence Precedes Economic Independence:

“In the [American] colonial era of hand-manufacturing most manufacturing had been of the home and domestic variety. In all regions the finer goods had been imported from England, paid for in the South by surpluses of agricultural products and in the North by the proceeds of the fur trade, ship-building, fishing, and the favorable balance derived mainly from the West India trade and to a less extent the Mediterranean.

When at the beginning of the nineteenth century commercial manufacturing began to arise, its locus became the Northeast rather than the South for a number of reasons. Among these the most important was the fact that the profits from commerce and allied enterprises during the Napoleonic Wars did not find adequate outlets for investment in the new manufacturing industries, principally textiles; while the profits derived from the older agricultural staples in the South found outlet for investment in land and slaves, in the new staple cotton which spread rapidly in the upland regions of the South Atlantic and then across the Gulf Plain of the deep South, continuing to the very eve of the Civil War when the interior of Texas and Arkansas were being penetrated by cotton culture.

As profits from manufacturing accumulated, there was a steady outlet for their reinvestment in the enlargement of plants, the creation of new plants, and the fabrication of many articles other than textiles. Of these the products of iron became most important, particularly in Pennsylvania.

The new forms of transportation – improved highways, canals, steamboats, and finally railroads – absorbed great amounts of capital in the North, and even in the South some of the profits from agriculture were invested in this sort of enterprise . . . [but] even to the end of the ante-bellum period the South bought most of its manufactured goods from the North or indirectly from Europe through Northern concerns and was to some extent dependent upon Northern credit for the financing of its own enterprises, so that in a way the South was an economic dependency and sphere of influence of the Northeast.

This condition was a galling one and was by no means negligible in bringing on the bloody conflict of 1861-65. In this respect at least, the attempt of the South to secede from the North was comparable to the earlier efforts of the American colonists to rid themselves by force of their dependence upon England. In each case it was the belief of the secessionists that political independence would prove the forerunner of economic independence.”

(The South Looks at its Past, Benjamin Burks Kendrick & Alex Arnett, UNC Press, 1935, pp. 76-78)

Massachusetts inventor Eli Whitney can be rightly said to have perpetuated African slavery in North America with his cotton gin in the mid-1790s. With the opening of the Louisiana lands less than a decade later, New England industrialists building cotton mills near Boston, and Manhattan bankers offering loans for new land purchases, the stage was set for Southern (and Northern) planters to expand slave-produced cotton operations westward. Had Whitney kept this invention to himself . . .

Bernhard Thuersam, www.circa1865.org

Eli Whitney Allures the South

“In 1829 the total value of exports from the United States was $55,700,193. Of this the Southern States contributed no less than $34,072,655 in cotton, tobacco and rice. At this time the total value of agricultural exports was a little under $44,000,000.

In short, three-fourths of the agricultural exports and three-fifths of our total exports came from the South. The value of the exports of manufactured article reached only about $6,000,000, of which $1,258,000 was manufactured cotton goods. Those who contributed most to the support of the country were restricted to home markets for the benefit of those who contributed very little.

After the invention of the cotton gin by Mr. [Eli] Whitney the dream of great wealth filled the mind of every Southern planter and farmer. There was a rush for rich bottom lands and every energy was expended in growing cotton. The South as late as the War of 1812 was the leading manufacturing as well as agricultural part of the country, but the profits to be derived from cotton culture allured our people into that direction and manufacturing was left to our brethren of the bleak and barren hills of New England.

Their factories made them the richest people in the world. They were guaranteed by the Government against competition from Europe and they were given a bounty in the amount of tariff on competing wares.”

(Annual Agricultural Resources and Opportunities of the South, J. Bryan Grimes, Farmers’ National Congress speech, 1901, pp. 5-6)

Sherman personalized American civilians in the South as his enemy — he branded their acts of self-defense as “cowardly” and deserving of swift retaliation — in effect denying that the South had the right to resist an invasion of its own country. While Sherman’s mental health is held in question by many, he was in truth only carrying out the orders of his master, Lincoln.

Bernhard Thuersam, www.circa1865.org

Sherman’s Civilian Enemies

“Article 44 [of US Army General Orders No. 100] . . . specified that “All wanton violence committed against persons in the invaded country, all destruction of property not commanded by the authorized officer, all robbery, all pillage or sacking, even after taking a place by main force, all rape, wounding, maiming, or killing of such inhabitants, are prohibited under penalty of death, or other such severe punishment as may seem adequate for the gravity of the offense.”

Paradoxically, it was . . . Union general, William Tecumseh Sherman, [who] gradually evolved his own personal philosophy of war along line which were clearly at variance with the official pronouncements, and in his practical application of that philosophy became one of the first of the modern generals to revert to the idea of the use of force against the civilian population of the enemy.

On the eve of the Civil War, Sherman could look back upon a career of dependence, frustrations, and failures. “I am doomed to be a vagabond, and shall no longer struggle against my fate,” he wrote his wife from Kansas in 1859. As he travelled northward in late February, 1861, to face once more the prospect of renewed dependence upon his father-in-law, his brooding over the ghosts of his own failures became mingled with gloomy forebodings concerning the future of the nation itself.

Passing from the South, where it seemed to him that the people showed a unanimity of purpose and a fierce, earnest determination in their hurried organization for action, into Illinois, Indiana and Ohio, where he found no apparent signs of preparation . . . he began to develop the deep conviction that he was one of the few people who understood the real state of affairs. It was only a short step from there to resentment against those who seemed unwilling to heed his warning or advice.

Convinced that Washington’s failure to act promptly on his requests [as a brigadier in Kentucky] was due either to indifference to the situation or to a willingness to sacrifice him, he developed a state of nervous tension in which his irritability and his unreasonable treatment of those about him antagonized the newspaper correspondents and led some . . . to publish stories questioning his sanity.

[He was relieved of command and] It was during this period of inactivity that the full import of these charges of insanity began to bear in upon him and to create in his mind an agonizing sense of humiliation. [He wrote his brother John] “that I do think I should have committed suicide were it not for my children. I do not think I can ever again be entrusted with a command.”

Two months later . . . he wrote to his brother that the civilian population of the South would have to be reckoned with in the months of war ahead . . . “the country is full of Secessionists, and it takes all [of a Northern] command to watch them.” Having become convinced that [telegraph] destruction was being accomplished by civilians rather than military personnel, he found it easy to judge the whole South on the basis of what he saw . . . Here was a manifestation of his tendency to arrive at generalizations by leaping over wide gaps of fact and reason and to proceed on the basis of his inspirations and convictions with the utmost faith in the soundness of his conclusions.

In this case his generalization led him to visualize the people themselves as a significant factor in the conduct of the war and to think in terms of a campaign against them as well as against their armies. [Writing to the Secretary of the Treasury], “When one nation is at war with another,” he said, “all the people of the one are enemies of the other: then the rules are plain and easy of understanding.”

[He continued]: “The Government of the United States may now safely proceed on the proper rule that all in the South are enemies of all in the North; and not only are they unfriendly, but all who can procure arms now bear them as organized regiments or as guerrillas.”

Sherman’s disposition to consider all resistance as treacherous acts of the civilian population prepared the way for the next steps in the development of his attitude on the conduct of the war.”

(General William T. Sherman and Total War, John Bennett Walters, Journal of Southern History, Volume XIV, No. 4, November, 1948, pp. 448-450, 454-455, 457-460,