Circa1865

The Grand Army of the Republic (GAR) formed after the war and quickly became a powerful organization whose political might led historians to see it as a pension lobby or “bloody-shirt” Republican club. The membership sustained the postwar Republican Party and Glided Age political corruption that followed the war, and no Northern politician’s campaign was complete unless he received the blessing of the GAR. The organization maintained the view that they saved the Union and that the South was guilty of treason, though the Constitution clearly states in Article III, Section 1: “Treason against the United States, shall consist only of levying War against them, or in adhering to their Enemies, giving them Aid and Comfort.” “Them” means the States comprising the United States.

Bernhard Thuersam, www.Circa1865.com

Monuments to Timeless Virtue and Infamy

“A . . . theme that emerged from GAR memorializations of the 1880s was that the war had broad meaning, not to say a moral, that transcended individual combat experiences. With occasional exceptions . . . the authors of the personal war experiences left the moral unstated. But in campfire speeches and war lectures, the repeated lesson was one of national salvation: the war had maintained the Union.

Prewar social and economic differences between the sections, issues of free labor and political power in the West, and especially the questions of blacks and slavery received scant mention in celebrations of the war’s outcome. Instead, the grand achievement of the Northern armies had been to rescue the indivisible nation as it had existed before . . . The war was a mission accomplished; the nation, something maintained intact rather than something greatly changed. It was a rhetoric pf preservation.

Both Civil War armies invoked republican traditions; both pointed to the same Revolutionary symbols. The other great influence on popular historical thinking during the antebellum years was evangelicalism . . . in the North, evangelical crusades against sin, culminating in the antislavery movement, drew on images of battles and the Apocalypse.

Yankee reformers pictured it as the crossroads of history. Armageddon, a climatic struggle from which the nation would emerge redeemed. Hymns urged patriots to march; ministers spoke of millennial change. No longer was the Republic seen as an entity formed at the beginning; it needed to be actively saved, not passively preserved. History was to be shaped, not studied, for examples of virtue.

At the same time, the overwhelming importance of the Republic’s preservation required permanent and public commemoration. Veterans proclaimed the message of national preservation in Congress, where on pension questions they drew pointed inferences regarding the duty of the nation to its saviors. And in city after city, new monuments refuted in stone any notion of the Civil War’s “pastness.”

As long as ex-Confederates did not question the moral lesson of the war, they were treated cordially – in fact, they were sometimes contrasted favorably with “loyal” noncombatants. Especially after 1880, [GAR] posts and encampments occasionally socialized with veterans from the other side.

[In 1894], white Northerners and white Southerners were engaged in a veritable love feast of reconciliation, complete with Blue-Grey reunions, Lost Cause nostalgia, and Confederate war monuments (including the first to be permitted at Gettysburg).

When it came to drumming the lessons of the war into the next generation, however, the ex-Confederates were doomed forever to play the heavy, always on the side of error, always vanquished by the hosts of the righteous. In the words of GAR commander William Warner, “we were eternally right and . . . they were eternally wrong.”

The line dividing cordiality from hostility ran between those actions (such as lecture invitations) that implied only sociability between former foes and those (such as the erection of Confederate monuments and waving the Confederate flag) that seemed to be aimed at subverting the message of national salvation.

Union veterans commonly expressed the division by saying that while the former rebels might be fine fellows, their principles were, and always would be, wrong. In 1874 [a Massachusetts veteran] . . . objected to the decoration of Confederate graves on Memorial Day by saying “he had nothing but the kindest feelings toward those who fought against us . . . but . . . let it be understood that we distinguish between loyalty and disloyalty; the latter is the treason against which we fought, and the former we pay respect and tribute to.”

In 1891, [GAR CIC] John Palmer allowed that the Confederates had been gallant and said the GAR was willing to accept them as fellows “on the broad grounds of American citizenship and unconditional loyalty.” But he went on to denounce several GAR men who had marched in Atlanta parade that included the Confederate flag. In New York a GAR member was dishonorably discharged for toasting Jefferson Davis at a Southern banquet.

In general, Grand Army posts objected most strenuously to those behaviors or symbols that implied honor to the Confederate cause – a flag, a monument, a toast to a president, flowers on a grave. Nor was it with the proper exegesis of battles, for those conflicts were by definition one-time only events. The worry was not so much about the lauding of individual Confederates (unless they were symbolic individuals such as Davis), for they would die eventually.

Instead, GAR posts worried about transmitting the moral of the war to the next generation intact. If monuments were to call forth “public valor and virtue in all coming time,” the lessons of war could not be subject to historical change. And if the virtue of the Union was to be timeless, so must be the infamy of the Confederacy.”

(Glorious Contentment, the Grand Army of the Republic, 1865-1900; Stuart McConnell, UNC Press, 1992, excerpts, pp. 181; 186-188-190-192)

The postwar Republican party in 1903 was not unfamiliar with exporting revolution for commercial and party purposes as it had supported revolts in Hawaii in 1887, which ended in the overthrow of Hawaiian sovereignty in 1898. The Columbian government would not move fast enough for Roosevelt the First, and the machinery of regime change was put into motion.

Bernhard Thuersam, www.Circa1865.com

Republicans and Panamanian Secession

“On November 3, 1903, a group of revolutionaries led by Manuel Amador staged a bloodless uprising in Panama City and succeeded in severing the province of Panama from the Republic of Columbia of which it had been an integral part. Under normal circumstances such political upheavals in Latin America would have caused little comment in the United States, but the Panama revolution was in no sense a normal affair.

An agreement had already been made with the New Panama Canal Company to purchase the rights of a defunct French corporation that earlier had attempted to construct a canal through the isthmian jungles; but all efforts to obtain a new grant of authority from the Columbian government proved to be unsuccessful, so unsuccessful, in fact, that there seemed to be little immediate hope that the United States would able to accomplish its self-appointed task of joining the Atlantic and Pacific Oceans.

Guided by motives of self-interest, the independent Republic of Panama would offer no impediment to the work of American engineers . . . In sum, the Panama uprising was, to all outward appearances, a most satisfactory revolution.

Viewed in the light of other developments, however, the whole Panama affair carried suspicious markings of American imperialism.

In the first place, the Roosevelt administration, in its anxiety to obtain Columbian approval of a suitable canal treaty, had exerted the most obvious sort of pressure on that government. During the spring and summer of 1903 Roosevelt had personally referred to Columbian officials as “inefficient bandits,” “contemptible little creatures,” and “homicidal corruptionists.”

He even threatened that country with action that “every friend of Columbia will regret” in the event some favorable solution was not soon reached.

In the second place, key figures in the Roosevelt administration had been exceedingly intimate with some of the leading figures in the Panamanian revolution. William Nelson Cromwell, an attorney for the New Panama Canal Company, for example, had contributed $60,000 to the Republican national committee in 1900 and through it gained an entry to the highest circles of that party.

Finally, the course of the United States government prior to and during the . . . revolution was open to suspicion of the gravest sort. An official of the State Department had sent an unfortunate inquiry to the American consul at Panama City asking about the uprising several hours before it occurred. Did this mean that the United States government had known in advance about the outbreak and had assisted the revolutionary party in planning it?

By like token, how did it happen that the USS Nashville arrived in Colon on the evening of November 2 and, on the day following the revolution, landed United States Marines there to prevent Columbian troops from seizing the Panama Railroad?

Above all, why did President Roosevelt recognize the new republic on November 6, receive [the new] minister from Panama on November 13, and authorize the signing of a canal treaty on November 17? Had Roosevelt personally engineered the revolt?

Certainly there was plenty of circumstantial evidence pointing towards the complicity of the American government; and although the Panama incident was still shrouded in secrecy, if the Democrats could uncover a few of the real facts underlying it both President Roosevelt and the Republican party would, in all likelihood, be faced with a scandal so infamous that political disaster must inevitably follow.”

(Arthur Pue Gorman, John R. Lambert, Louisiana State University Press, 1953, excerpts, pp. 297-300)

With Benjamin Harrison in the White House in 1889, the Republican party moved quickly to restore its political hegemony and construct numerous barriers to future Democratic victories. In a two-pronged effort the McKinley Bill would establish high tariff rates to protect northeastern manufacturers from foreign competition and encourage campaign contributions; the Force Bill ostensibly prevented corruption in Federal elections – but in reality gave Federal district judges the power to manipulate congressional elections in the South by shearing as much authority as possible from local election officials.

Bernhard Thuersam, www.Circa1865.com

The Force Bill Fight in Congress

“When Congress assembled in December, 1889, the Republicans were in complete control of both branches for the first time in sixteen years. With a great deal of satisfaction, therefore, their leaders revived the partisan measures that a Democratic majority in one house had previously thwarted.

In the opening days of the session they prepared several items of legislation designed to strengthen and lengthen Republican power. Their high tariff supporters were to be rewarded with the McKinley bill with its inflated schedules; the [treasury] surplus was to be obliterated by a veritable orgy of Federal spending; and any subsequent restoration of the Democratic party to power was to be hampered by a set of Federal election laws that would weaken the Solid South with Negro ballots and, if necessary, Northern bayonets.

If the Democrats were to survive the onslaught that the Republicans planned for them, they would require unflagging minority leadership in Congress. Shrewd parliamentary leadership would be needed there to employ effectively the minority’s somewhat limited resources.

The elections bill . . . was designed to appeal to lovers of human, rather than property rights. Its provisions were to be simple, just, and, to all outward appearance, eminently nonpartisan. Those who opposed its passage would place themselves in the position of defending Negro disenfranchisement, unconstitutional usurpation by Southern whites, and downright criminality. To attack the elections bill would be equivalent to a shameless confession of guilt.

Both measures were designed to cripple the Democratic party. The Tariff bill was not simply the negation of avowed Democratic principle; it was both the repayment of Republican campaign debts and the promise of future contributions.

“Fat-frying” had made Republican victories possible in 1888; high tariff schedules would now satisfy old customers and establish a new group of beneficiaries whose financial support might ensure Democratic defeat indefinitely.

The ulterior motives behind the elections bill were equally clear. Pious declarations that it was not a political weapon might assist its passage, but once it became law, the President would be empowered to enforce its provisions with the full support of the Army and Navy.

By this time it was clear to everyone that the Republicans were not motivated by humanitarian impulses in their efforts to protect the Negro in his constitutional rights; they were attempting to restore the political control over the Southern election machinery which they had exercised during the Reconstruction era”

(Arthur Pue Gorman, John R. Lambert, Louisiana State University Press, 1953, excerpts, pp. 145-148; 157)

At Vicksburg, Grant initiated a concept of total war and annihilation against Americans in the South which caused Sherman to worship him. The endless streams of paid substitutes and immigrant recruits sent by Lincoln to fill his constantly depleted ranks far surpassed the small citizen armies of the South who fought with their homes behind them.  Grant may have learned this from British Col. Banastre Tarelton, and saw sheer brutality against soldier and civilian alike as an effective manner in which to subjugate the South. Monitoring both Grant, Sherman and Sheridan destructive campaigns was a young Spanish attache, Captain Varleriano Weyler, who in the mid-1890s became known as “Butcher” Weyler for herding Cuban women and children into concentration camps and burning the countryside.

Bernhard Thuersam, www.Circa1865.com

Grant’s New Kind of War

“What Sherman could not see was that Grant had, in those silent months before Vicksburg, evolved a new psychology for the Federal armies. At [Fort] Donelson the seed of the new idea had started to grow when he had noted that if two fighters were exhausted the first to revive would be the victor.

Lying at the foot of Vicksburg’s cliffs, Grant had come to the irrevocable belief that, in the end, triumph would come to that army which never counted its dead, never licked its wounds, never gave its adversary breathing space, never remembered the past nor shrank from the future – the army which dismissed old rules and ignored rebuffs – the army which held implicit faith in a simple and eternal offensive.

As he prodded his men . . . , Sherman’s eyes began to open, [and] the old military world of West Point [seemed] to spin around beneath him and disappear. This was a new kind of war – and Grant was making his own rules as he went along. Here was an army caring not a whipstitch for a base of supplies. From field, barn, smokehouse, and cellar they were extracting epicurean meals.

When they squatted on their haunches at noon, they fried ham, bacon, pork chops, beefsteak . . . they rolled blankets around bottles of wine and whiskey lifted from baronial sideboards. What was a base of supplies to them? They were not professional soldiers. They were western pioneers – a new generation of pioneers loose in a new country with rifles and axes.  Had their fathers or grandfathers given a damn about a base of supplies when they had crossed the Ohio long ago to enter the wilderness?

While his men built a new bridge over the Big Black River, he lay down in a Negro’s cabin to snatch a few moments of sleep. It was midnight . . . [and] Grant had just ridden up. Twenty-five years later Sherman recalled the scene in detail:

“I rushed out bareheaded and taking him by the hand said, “General Grant, I want to congratulate you on the success of your plan. And it’s your plan, too, by heaven, and nobody else’s. For nobody else believe in it.”

It was as near to hero-worship as Sherman would come in a lifetime that held no heroes.”

(Sherman, Fighting Prophet, Lloyd Lewis, Harcourt, Brace and Company, 1932, excerpts pp. 273-274)

South Carolina’s first reconstruction governor was former Northern General Robert K. Scott, a Pennsylvania native who accomplished a tripling of the State debt through corruption and fraudulent bonds; his legislature voted itself a full-time saloon and restaurant at taxpayer expense. Scott’s successor, former Northern army officer Daniel H. Chamberlain was determined “to make his elected position pay,” though feeble attempts were made toward reform and Republican patronage which enraged black Republicans expecting favors for votes delivered.

Bernhard Thuersam, www.Circa1865.com

Representing the Powers at Washington in South Carolina

“There is ample evidence of both black domination and the exercise of controls over black leadership by the white [Republican] leadership. South Carolina was unique among the reconstructed States in that blacks constituted about 60 percent of the population. This population advantage was converted into a substantial numerical advantage in the legislature, where Negroes held a two-to-one majority in the lower house and a clear majority on joint ballot of House and Senate throughout the nine-year period of Reconstruction.

During this same period [black South Carolinians] held the office of secretary of state (from 1868 to 1877), lieutenant-governor and adjutant-general (after 1870), secretary of treasury, Speaker of the House, and president pro tem of the Senate (after 1872).

On the other hand, Negroes never held the governorship, the office of US senator, any of the eight circuit judgeships, the offices of comptroller general, attorney general, superintendent of education, or more than one of the three positions on the State supreme court.

Furthermore, there were recorded instances of black officeholders serving as mere pawns of shrewder white [Republican] colleagues. The northern-born county treasurer of Colleton County boasted to Governor Scott that he “could control every colored man’s vote in St. Paul’s Parish and St. Bartholomew Parish.” The Negro treasurer of Orangeburg County found himself in jail charged with malfeasance in office, while the white mentor who had gotten him the appointment and directed his peculations went free.

On another occasion it was alleged that the white [Republican] political boss of Colleton County engineered the removal from the county auditor’s position of a well-educated Negro political enemy, replacing him with another Negro who was illiterate. The latter was expected to be auditor in name only, while another white crony performed the duties of office.

[The] reactions of historians to [traditional images of racial relationships often betray] more emotion than analysis [and] . . . [WEB] DuBois, for example, accepted the idea of the essential powerlessness of blacks in South Carolina’s Reconstruction government in order to minimize the culpability of blacks for the corruption of that government, even though [this actually] contradicts his thesis of black labor’s control of the government.

However, the key advantage of the white Republicans probably lay in their presumed or real contacts in the North which enabled them to promise and sometimes deliver funds, patronage or protection. White Northerners often passed themselves off as representing the “powers at Washington” in order to secure the political obedience of the Negroes, according to [carpetbagger] ex-Governor [Daniel H.] Chamberlain.

Just after the passage of the Fourteenth Amendment, a committee of South Carolina’s Negro political leaders made a secret trip to Washington to confer with Thaddeus Stevens and Charles Sumner about the formation of a political organization.

But many white Republicans continued to advocate efforts to attract native whites into the Republican party and the appointment of northern whites to sensitive positions. This policy reflected their lack of confidence in black officeholders . . . “There is not enough virtue and intelligence among the Blacks to conduct the government in such a way as will promote peace and prosperity” [wrote one Republican].

In other instances, white Republican officeholders urged the governor to replace with whites those black colleagues whom they considered “un-businesslike” or incompetent.”

(Black Over White, Negro Political Leadership in South Carolina during Reconstruction, Thomas Holt, University of Illinois Press, 1977, excerpts, pp. 96-104)

The months between Lincoln’s election and his inauguration are seen as the most critical in American history as the historical record shows that he revealed little in those four months that might have averted war. Many people journeyed to Springfield, Illinois to better understand his positions though he “wished neither to articulate unrealistic solutions nor hinder ongoing negotiations,” and his Republican allies in Congress convinced him to follow a strategy of silence. His later claims that he wanted to avert war are difficult to explain, and the Founders would not have understood how a mere president could decide whether a State legislature could convene.

Lincoln’s friend Duff Green (1791-1875) was a Kentucky-born politician and businessman who had served under General William H. Harrison in the War of 1812. He later practiced law in Missouri where he also served in the legislature and served as a diplomat under Presidents John Tyler and Zachary Taylor. During the war he manufactured iron for the South and operated the Dalton Arms Factory.

Bernhard Thuersam, www.Circa1865.com

Power and Politics over Country

“Green and Lincoln did meet one more time. On April 5, 1865, Lincoln was stationed off the Virginia shore on the USS Malvern trying to decide whether to allow a Virginia legislature to convene since that State had no other government. As it happened, Duff Green was in Richmond at the same time . . . [and] asked for and was granted an audience with the president. The two old friends enjoyed an amiable discussion . . . Green recalled that Lincoln received him “with great kindness.”

The two men discussed the terms of peace and reconstruction. Lincoln said that all the Southern States had to do was “acknowledge the authority of the United States.”

Lincoln remembered their Springfield meeting four years earlier. The president told Green that he went to Washington “resolved to carry out in good faith” those same pledges that he gave when they met in Illinois. Lincoln insisted that he had been willing to sign a constitutional amendment prohibiting Congress from interfering with slavery in the States, a policy similar to what he communicated to Green in Springfield.

Green later contended that if Lincoln “had come to Washington in December, 1860, as I urged him to do, and had then exerted the like influence in favor of Mr. Crittenden’s resolution, extending the Missouri compromise line to the Pacific . . . who can doubt his influence . . . would have prevented the war?

Green believed Lincoln had wanted to avert a war. He alleged, however, that Lincoln’s conciliatory attitude “was carefully kept from the knowledge of the Southern people.” Green stated that if “any pains had been taken” to explain Lincoln’s position to the South, the hostilities may have ended. He blamed the Radical Republicans for deceiving both Lincoln and the Southern public. He believed the president sought peace but was overwhelmed by his party who initiated war in order to control the patronage and powers of the federal government.”

(Lincoln, Green and the Trumbull Letters, David E. Woodard; Civil War History, the Journal of the Middle Period, John T. Hubbell, editor, Kent State University, Vol. XLII, No. 3, September 1996, excerpts pp. -219)

With the Philippine islands in American hands after the Spanish War, the natives imagined their islands free of foreign rule as a gift from America. The liberator determined that the natives “were ill-suited to the concept of representative democratic government” and decided to stay until such was the norm, no matter how many Filipinos lives it cost and years it took.  It will be recalled that the war against Spain began with bellicose headlines from the newspapers of Hearst and Pulitzer.

Bernhard Thuersam, www.Circa1865.com

Obsessed with World Power and Democracy

“On July 4, 1901, William Howard Taft took the oath of office as the first Governor-General of the Philippines, and control of the islands passed from the military arm of the government. Not all the problems [of converting the islands] had been solved. Philippine society remained ill-suited to the concept of representative democratic government, primarily because it is not one culture, but several.

An election in Zamboanga was decided by which Filipino shot the other candidates first.

The Filipinos in the northern islands were Tagalog Christians, those in the south were Moro’s (meaning “Mohammedan”) who had long resisted Tagalog encroachment. A tribal people, they were fiercely jealous of their semi-savage freedom. Wisely, the Spaniards had left them to their own devices; but the Americans wanted to clean up and educate everybody.

So the [American] army established a garrison at Balangiga, on Samar, in the south where Magellan had sighted the Philippines and where he was to die at the hands of natives.

On September 1, 1901, the natives from the surrounding hills of Balangiga fell on the American garrison, and in a devastating surprise littered the street with the heads, brains and intestines of the soldiery. This was the beginning of a religious war with the Moros, one that took longer to settle than the war against Aguinaldo’s insurrectos.

The fight became a struggle to win the minds and hearts of the villagers, who supplied the guerrilla bands and offered them bases and sanctuaries. What was called for [to control the Moros], [General John J.] Pershing decided, was to disarm the entire Moro Province, to confiscate or buy every rifle, pistol, campilan, bolo and krise on the islands.

It was not an original idea. General Leonard Wood, who left the Philippines in 1910 to become Chief of Staff advised Pershing: “You cannot disarm the people. It means they will bury their best arms and turn in a few poor ones, especially some who want to make a show of obedience.” Moros who surrendered their arms were victimized by those who had not . . . it is as hard to disarm a people as it is to make them give up a religious belief.

In a letter to Avery D. Andrews, Pershing put succinctly the apostolic creed to which he himself subscribed:

“It has been urged by some people at home that the Filipinos should be given their independence. Such a thing would result in anarchy. To whom should we over the government? Tagalog, Viscayan, Igorrote, Macabebe or Moro?No one can answer that any of these tribes represents the people in any sense, any more than the Sioux represents all the Indians in America. There is no national spirit, and except for the few agitators, these people do not want to try independence.  They will have to be educated up to it and to self-government as we understand it, and their education will take some time and patience. It is a grand work cut out for us from which there should be no shirking.”

The Americans stayed on, Pershing said, because “the American people being obsessed with the idea of maintaining their new position as a world power, insisted on keeping the flag flying over a territory once it was in our possession.

In the long run, the only advantage the United States or the Philippines realized from the occupation was the military mission. The archipelago was never destined to become a great way station to exploit trade with the Orient. America and the world economy were finding uses for Philippine products, especially hemp, sugar, timber and minerals.

But as the world was discovering these products, the Filipinos were discovering corruption. By 1920, Wall Street learned that the directors of the [Wall Street-capitalized Philippine National] bank had dealt out so many unsecured loans that $24 million had simply evaporated. The bank’s reserves, which should have been retained in New York, had also vanished in alarming fashion. Similarly, American rail industries had capitalized the Manila Railroad Company, which piled up astronomical losses in only eight years. By 1921, the islands were insolvent.

Democracy and equal opportunity have always been problematic for the people of this archipelago. William Howard Taft warned the American electorate in 1912 that only 3 percent of the Filipinos voted and only 5 percent read the public press; to confer democracy on such a society was to subject the great mass to the dominance of an oligarchical and exploiting minority.

“The idea that public office is a public trust,” Taft said, “has not been planted in the Filipino mind by experience . . .”

(Pipe Clay and Drill; John J. Pershing: The Classical American Soldier”, Readers Digest Press, 1977, excerpts, pp 100-153)

As Lincoln was unable to finance his war with the traditional tax and customs revenue sources, he turned to paper fiat money to be printed as needed, though the Constitution permits only gold and silver as legal tender. The predictable speculation in the value of greenbacks versus gold prices caused murky markets to emerge. In New York’s “Gold Room,” decisions were guided not so much by patriotic motives as the desire for profit. It was said that “Sectional feeling often entered largely into bull and bear contests in the Gold Room, and Union men and rebel sympathizers fought their battles sometimes, as much to gratify this as to make money.”

Bernhard Thuersam, www.Circa1865.com

Financing the War with Inflation

“To help finance the Civil War, the federal government began issuing “demand notes” in July 1861. These government obligations were not a legal tender currency and were freely convertible into gold upon presentation to a federal depository. During the course of 1861, the Union’s financial condition deteriorated, and in December the Treasury issues a very bleak report on the budgetary situation.

In the face of such news, bankers concluded that investors would lose confidence in the demand notes and the banks would soon experience a massive outflow of gold. On December 30, the banks suspended specie payments of gold [for greenbacks]. The government followed suit almost immediately.

Soon thereafter, in February 1862, Congress passed the first of the Legal Tender Acts. These acts authorized the government to issue “greenbacks” – a currency that was to be legal tender for both public and private debts. Of course, since demand notes were no longer convertible into gold, neither were greenbacks . . . [though] all available evidence indicates that the public believed that at some future date convertibility would be reinstated and all greenbacks would be redeemed in gold.

[Because Lincoln] was unable to finance the war with the available tax revenues . . . Greenbacks were a way of using inflation to pay for the war. Speculators knew that the degree to which the Union would have to rely on future greenback issues depended on just how much the war would ultimately cost. A long, expensive war would require more greenback issues and make it less likely that greenbacks would ever be exchanged for gold dollars on a one-for-one basis.

Not surprisingly, a formal market for buyers and sellers to trade gold came into existence within two weeks of the suspension of convertibility. The first organized dealings took place at the New York Stock Exchange on January 13, 1862. At about the same time a second market formed . . . in New York City . . . known as the Gold Room.

An important question for our purposes is how the gold market used the [political and war] information coming to it. Did the financial market react quickly to news that was available, or did it take several days to digest it? A closely related question is whether news of battles . . . reached all participants at the same time.

In a report on the burning of Chambersburg, Pennsylvania, on July 31, 1864, the New York Herald explicitly noted that the government frequently withheld information from the public to minimize alarm and protect intelligence and sources.

The daily registry of the Gold Room was a quicker messenger of successes and defeats than the tardier telegrams of the Associated Press. A private secretary of a high official, with no capital at all to save his position, which gave him authentic information of every shaping of the chess game of war a full twenty hours in advance of the public, simply flashed to the words “sell, buy” across the wires, and trusted the honor of his broker for the rest.

If there was a sufficiently large number of “insiders” competing with each other, then the market would quickly transform war news into changes in the price of greenbacks, despite the fact that the news was not coming through published sources.

The observation of [New York Herald writer] Kinahan Cornwallis are consistent with this notion: “Almost every individual speculator in the Gold Room, whose transactions were large enough to make it of consequence, had a correspondent in the national capital, who sent him a telegraphic dispatch as occasion required . . .”

(Greenback Prices as Commentary on the Union Prospects, Guinnane, Rosen and Willard, Civil War History, The Journal of the Middle Period, Kent State University Press, December 1995, Volume XLI, No. 4, excerpts, pp. 315-318)

Prior to 1861, the New York Associated Press was playing an important role in transforming American journalism by centralizing a network of like-minded newspapers to distribute news to the country. After commencing hostilities, the Lincoln administration began censoring news stories regarding the war almost immediately and what followed was a constant suppression of stories regarding war financing in Congress, the imminent bankruptcy of the government, Northern casualties figures, and war profiteering by war materiel contractors.

Bernhard Thuersam, www.Circa1865.com

Censorship and Favorable Publicity

“At the outset of the Civil War – and for the first time in American history – the federal government created an apparatus to censor news stories. For the first ten months of the war, responsibility for the Washington censorship shifted among cabinet officials. Given this arrangement, the censorship imposed on correspondents during the crucial early phase of the conflict was as much political as military.

In December 1861, the House of Representatives authorized the Judiciary Committee “to inquire if a telegraphic censorship of the press has been established in this city; if so, by whose authority, and by whom is it now controlled.” The committee held hearings during January and February before submitting its fourteen-page report to the House in February 1862.

On April 19 . . . reporters gathered details from the battered [6^th Massachusetts Regiment returning from Baltimore] and hurried to the Washington telegraph office to file their stories for Northern newspapers. When they arrived, however, they found the office guarded by a militia squad . . . no one quite accepted responsibility for the decision to ban the transmission of news, though [William] Seward mentioned that the cabinet had been discussing the need for some type of telegraphic censorship.

[News organization owners were told that] Messages about military operations were to be detained, as was anything “injurious to the interest of the Government.” The circular closed with the admonition, “Of course the strictest secrecy must be observed in respect to these instructions.” Near the end of April, the War Department assumed control of the telegraph and the censorship program.

Telegraphic reports about the outcome of [First Manassas] on July 21 damaged the credibility of both the government and the press and prompted changes in censorship. Early accounts of the battle telegraphed to Northern newspapers suggested an imminent Union victory . . . [and] left the public unprepared for the news that followed: the battle ended in an ignominious rout of the Union army.

Only days after Gen. George B. McClellan assumed command of the Army of the Potomac, he met with reporters and proposed a code that governed news sent by telegraph . . . “that may furnish aid and comfort to the enemy.” Eleven correspondents representing leading newspapers in New York, Philadelphia, Boston, Cincinnati, and Washington signed, as did General McClellan.

The ultimate arbiter of what could pass over the wires from Washington, Secretary of War Simon Cameron, was well-positioned to cultivate favorable publicity. He directed the censor to let the “despatches of Mr. [Samuel] Wilkeson, of the New York Tribune, go over the wires as written . . . as Wilkeson enjoyed the latitude to offer comments, even editorialize, in his reports from Washington. “The privilege was to be used wholly in [reference] to the policy of sustaining the govt – sustaining the War Dept.,” Wilkeson testified.

Wilkeson’s reports to the Tribune regularly defended Cameron and the War Department from the many charges of scandal and mismanagement in awarding military contracts.”

(The Telegraph, Censorship and Politics; Richard B. Kielbowicz, Civil War History, Vol. XL, 1994, Kent State University Press, excerpts, pp. 96-101)

In the following mid-1864 letter to Charles Sumner of Massachusetts, General E.W. Gantt of Arkansas questions the revolutionary logic of the radical Republicans in Congress who claimed sovereign States had become mere territories after unsuccessfully seeking political independence — he expected the North to live up to its alleged aim of preserving the Union as it was. Gantt was a Confederate brigadier who decided by 1863 that Arkansas could not achieve independence and should return to the Union — he became the only Southern general to commit treason.  Historian Bruce S. Allardice suggests that Gantt’s behavior was the result of insobriety, cowardice, opportunism or immorality.

Bernhard Thuersam, www.Circa1865.com

Readmission a Legal Impossibility

Secession and Readmission; Letter to Hon. Charles Sumner from Gen. E. W. Gantt, of Arkansas.

FIFTH-AVENUE HOTEL, June 1, 1864.

Hon. Chas. Sumner:

SIR: But for your resolution and action in reference to Arkansas politics, I feel sure that I should not have appeared before the public again. The subject which calls forth this letter being entirely of a public character, induces me to address you through the columns of the New-York TIMES.

Upon the application of the State of Arkansas to resume her relations — temporarily disturbed — with the National Government, by sending her constitutionally-chosen representatives for that purpose, you have seen fit to introduce the following resolution, to wit:

Resolved, That a State pretending to secede from the Union, and battling against the National Government to maintain their position, must be regarded as a rebel State, subject to military occupation, and without representation on this floor, until it has been readmitted by a vote of both Houses of Congress; and the Senate will decline to entertain any application from any such rebel State until after such a vote of both Houses.

From this I infer that you intend to oppose our peace offering, and to break up, if possible, our loyal State organization, effected as it has been at immense personal hazard, and wonderful exertions and determination upon the part of our loyal people.

When you say that a “State pretending to secede” must be “readmitted” by a vote of both Houses of Congress, what are we to understand you to mean? Do you mean that the State really did secede? That is, that it got out of the “compact?” If that be so does it not occur to you that it went out as a State and became a separate sovereignty? If this be so, “readmission,” it strikes me, is a legal impossibility. The Sovereign Government of Arkansas should apply for “annexation” and not “readmission.” But do you mean that it only pretended it was out, while in point of fact it was in the Union? Then how could you “readmit” that which never was out? It would place the Government in the awkward attitude, it seems to me, of fighting against the people of a State because they “pretended to secede,” and yet had not, and at the same time declaring that they did go out and must be “readmitted.”

But do you mean that the secession ordinances passed by certain legislatures and conventions reduced the States in which the same were passed to Territories? If so, how? If the ordinances referred to put the States out, why they went out as States. It won’t do to say they had just enough sovereignty to scramble out of the Government, and that then they rumbled into Territories.

The sovereignty reserved that could take them out, could hold them up as States. As such, they could form compacts with other Governments, or new combinations of their own. They could not possibly work their way out of the Government, and being out, fall back to the Government as a part of its territory — no more than they could merge into the Russian possessions. A doctrine so dangerous might destroy the Government in a month. Secession ordinances passed by twenty States, reducing them to Territories, would stop the wheels of Government.

But you may intend this as a punishment because our State “pretended to secede.” If so, we are already punished enough. But why discriminate? Missouri pretended to secede, and so did Kentucky. There was no question raised over them. And Mr. BOULINEY, of Louisiana, remained in the Congress of the United States more than one year after Louisiana pretended to secede.

But, then, your opposition may arise from want of regularity in the reorganization. That it was without precedent I admit. That the people, groaning under anarchy, oppression and despair, wrought out a government from the wreck around them, with no beaten path to follow, is true.”

(New York Times, June 3, 1864)