Circa1865

Lord Acton writes that “secession is not a theory of the Constitution, but a remedy against a vicious theory of the Constitution” — the right of a minority to withdraw from a political agreement which they no longer wish to be part of, and to escape the tyranny of the majority. Even a nationalist like Hamilton saw the balance necessary between national and State governments, and that both will be prevented from trespassing on each one’s constitutional limitations. The States would be further protected by the strictly delegated, and few, powers of the general government.

Bernhard Thuersam, www.Circa1865.org

New England Sets the Example for the South

As a consequence of troubles between Napoleon’s Berlin decree and the British response, President Jefferson determined to lay an embargo on all American vessels – with a subsequent Bill passed December 22, 1807.

“The embargo was a heavy blow to the ship-owning States of New England . . . the others were less affected by it. “The natural situation of this country,” says Hamilton, is to divide it interests into . . . navigating and non-navigating States. This difference in situation naturally produces a dissimilarity of interests and views respecting foreign commerce.”

Accordingly the law was received in those States with a storm of indignation. Quincy, of Massachusetts, declared in the House: “It would be as unreasonable to undertake to stop the rivers from running into the sea, as to keep the people of New England from the ocean . . .”

The doctrine of State-rights, or nullification, which afterwards became so prominent in the hands of the Southern party, was distinctly enunciated on behalf of the North on this occasion.

Governor Trumbull, of Connecticut, summoned the legislature to meet, and in his opening address to them he took the ground that, in great emergencies, when the national legislature had been led to overstep its constitutional power, it became the right and the duty of the State legislatures “to interpose their protecting shield between the rights and the liberties of the people, and the assumed power of the general government.”

They went farther and prepared to secede from the Union, and thus gave the example which has been followed, on exactly analogous grounds, by the opposite party.

John Quincy Adams declared in Congress that there was a determination to secede. “He urged that a continuance of the embargo much longer would certainly be met by forcible resistance, supported by the legislature, and probably by the judiciary of the State . . . Their object was, and had been for years, a dissolution of the Union, and the establishment of a separate confederation.”

Twenty years later, when Adams was President, the truth of this statement was impugned. At that time the tables had been turned, and the South was denying the right of Congress to legislate for the exclusive benefit of the North Eastern States, whilst these were vigorously and profitably supporting the Federal authorities.

It was important that they should not be convicted out of their own mouths, and that the doctrine they were opposing should not be shown to have been inaugurated by themselves.

(The Civil War in America: Its Place in History; Selected Writings of Lord Acton, Volume I, Essays in the History of Liberty, J. Rufus Fears, editor, Liberty Fund, 1985, excerpts pp. 231-234)

Lincoln’s war administration and deficit financing ushered in the modern American state which remains in existence today. The various Bureaus, Departments and revolutionary measures created for the purpose of increasing federal power were all linked to his total war-effort, including the restructuring of currency and banking. Author Bruce D. Porter (War and the Rise of the State, Free Press, 2002) wrote that “Appomattox thus represented not just the defeat of the South, but the defeat of the whole Southern economic and political system, and the triumph of a state-fostered industrial and financial complex in the North.”

Bernhard Thuersam, www.Circa1865.org

The True Result of Appomattox

“[in Herman Melville’s postwar] poems he recognized the tremendous costs, especially through the loss of freedom and the end of the founders’ dream for America as a result of the North’s victory. He viewed the construction of the new iron dome on the Capitol in Washington, DC, which replaced the wooden one, as a symbol of America’s future.

Bruce Porter’s well-documented study [of the war] relates some of the economic costs of the Civil War:

In connection with the war the Lincoln administration attempted to intervene in areas of the national life that the federal government had never touched before . . . Prior to 1861, the national government had been a minor purchaser in the American economy. During the war, it became the largest single purchaser in the country, a catalyst of rapid growth in key industries such as iron, textiles, shoe manufacturing, and meat packing . . .

The Civil War spawned a revolution in taxation that permanently altered the structure of American federalism and the relationship of the central government to the national economy. Prior to the war, over 80 percent of federal revenue had come from customs duties, but despite several upward revisions of the tariffs during the war, those could provide only a fraction of what was needed to sustain the union armies.

On August 5, 1861, the first income tax in US history came into effect, followed by the Internal Revenue Act of 1862, which levied a whole series of new taxes: stamp taxes, excise taxes, luxury taxes, gross receipt taxes, and inheritance tax, and value-added taxes on manufactured goods. The latter Act created the Bureau of Internal Revenue, perhaps the single most effective vehicle of federal power ever created . . .

Neither taxes nor paper dollars, however, came close to covering the enormous costs of the war. Dire fiscal straits forced the federal government to borrow over 80 percent of its cost, or more than $2.6 billion. [The] Lincoln administration created a captive source of credit by granting a monopoly on issuance of the new national currency to banks that agreed to purchase large quantities of federal bonds . . . [and] agree to accept federal regulation and federal charters. Thus, almost overnight, a national banking system came into being.

[Author] Eric Foner writes that the fiscal measures represented in their “unprecedented expansion of federal power . . . what might be called the birth of the modern American state . . .”

(The Costs of War, America’s Pyrrhic Victories, John V. Denson, Transaction Publishers, 1999, excerpts pp. 28-29)

There is little question that the origins of the American Revolution, and the later War Between the States, are rooted in New England’s illicit trade in slaves and molasses, and England’s efforts to stop the maritime competition with the mother country. By 1750, Rhode Island had become the center of the transatlantic slave trade, surpassing Liverpool for the dubious honor.

The author below writes: “nine-tenths of the colonial merchants and skippers had become smugglers as the break with England neared. Such men as John Hancock, a prince of contraband traders, on the eve of Paul Revere’s ride had for counsel before the Admiralty Court in Boston none other than John Adams, answering for him a half-million dollar suit in penalties as a smuggler.” He went on that “One-quarter of all the signers of the Declaration of Independence were bred to commerce, to the command of ships and to contraband trade.”

Bernhard Thuersam, www.Circa1865.org

New England’s Perpetuation of Slavery

“In accord with the spirit of the times the British Parliament passed a series of statutes in 1633 providing, among other things, that nothing could be brought into the colonies that wasn’t carried there in British ships, “whereof the master and three-fourths of the crew are English.”

[Concerned about the rise of illicit maritime trade of New England] the shipbuilders of the Thames district met in London in the winter of 1724-1725 and formally complained to the Lords of Trade:

“In the eight years ending in 1720 we are informed that seven hundred sail of ships were built in New England, and that in years since, as may if not more; and that the New England trade, by the tender of extraordinary inducements, has drawn over so many working shipwrights that there are not enough left to carry on the work [in England].”

Linked inseparably with the venture south to the [West] Indies the colonists’ brisk trade in rum and what they were in the habit of calling “Black Ivory.” For the Indies trade was a three-cornered affair hinging on rum, slaves and molasses. Together they comprised the foundation for more ships and hence more trouble than all the politicians ashore put together.

The New Englanders had Indian slaves as early as 1637 . . . and more or less formal business developed, with traders nabbing Indians along the banks of the Kennebec River in Maine and selling them into slavery up and down the coast. It was the black ivory from Africa, however, that turned the trick in the West Indies trade and established Southern slavery on a solid and enduring footing.

The mechanics of this all-important trade worked like this: molasses was brought to New England and made into rum; the rum, highly prized among Negroes on the west coast of Africa, brought its own price among the drinkers, a price that included any of their relatives or friends who might have the bad judgment to be lying about, and the resultant human cargoes were disposed of profitably in Boston, Newport [Rhode Island] and on south.

Not all the West Indies rum was drunk by Negroes. A flourishing local trade in fur was conducted with the Indians by the extremely profitable exchange of a few bottles of cheap rum or whiskey for the entire season’s catch of its drunken owner. The tribal chiefs . . . in 1726, begged without avail to have the sale of firewater to the young braves stopped.

It is hardly surprising, then, that among the first real troublemakers of all the British efforts to raise money [to support the colonies] was a new Molasses Act, for it was molasses brought in from the French West Indies from which New England rum was made. To put teeth into the effort Parliament authorized the use of writs of assistance, a sort of search warrant covering an entire community that gave British customs officials the right to search any ship, warehouse or even private home for smuggled goods.

When the harried Board of Trade and Plantations finally decided to act, its attempt to enforce the Navigation Acts [to restrict New England’s rum and slave triangle] was the spark in the touchhole that set the guns to booming.”

(Yankee Ships, an Informal History of the American Merchant Marine, Reese Wolfe, Bobbs-Merrill Company, 1953, excerpts pp. 39; 43-44; 49-51)

The Fells Point shipyard of Baltimore builder William and George Gardner built many fast merchantmen during the 1830s, as well as for the slave and opium trade. One Fell’s Point free black carpenters was Fred Bailey (later Fred Douglass) who helped build the slavers Delorez, Teayer, Eagle at Price’s Shipyard, plus the Laura at Butler & Lamdin yard in the same city. In 1844, Bostonians George and John Dixwell of Augustine Heard & Co. ordered fast clippers built by the Gardner’s to carry Bombay opium to China, where it was outlawed. One of their most notorious opium clippers built for the Dixwell’s was the “Frolic,” despite an 1844 treaty forbidding American ships carrying in into China.

Bernhard Thuersam, www.Circa1865.org

Illicit Trade in Slaves and Opium

“Probably the most notorious slave ship ever built in the United States, the Venus, was widely discussed in the newspapers at the time. On July 4, 1838, the Venus reached completion at Fells Point . . . the Venus was neither a warship nor a merchantman, but a slave ship in disguise. Indeed, like the merchant traders of New England, Baltimore shipbuilders had a long tradition of employing ruses to conduct their craft in defiance of the law.

The Gardner’s were careful; to protect themselves by selling the slave ships they built to foreign buyers. These transactions through intermediaries, though contrived and transparent, sufficed to enable the Gardners and other Baltimore builders to construct the world’s most profitable slavers while remaining officially and legally ignorant.

As soon as the Venus was ready to be launched, [owner] Lambert Giddings [transferred] the vessel to Jose Mazorra, a notorious [Cuban] slave trader. As the Venus left Havana “with equipment for the slave trade,” we may assume that during her nineteen-day layover in Cuba carpenters were busy fitting her out with platforms in her hold and tons of iron shackles and chains.

On November 5, the Venus, still under the American flag, arrived at Lagos on the West African coast . . . and departed Lagos with a cargo of about 1,150 slaves. The American flag and papers had provided protection for the vessel until the slaves were driven aboard, whereupon the vessel was given over to an agent of Jose Mazzora who carried . . . fraudulent papers . . . disguised as a wholly different vessel.

Continued “foreign” orders for slavers during 1838 and 1839 helped the Gardners’ business survive the financial panic of 1837. [The slaver Venus] would bring international recognition to the Gardners – and ultimately an order for two opium clippers from John and George Dixwell of Augustine Heard & Co. [of Canton, China and Ipswich, Massachusetts].”

(The Voyage of the Frolic: New England Merchants and the Opium Trade, Thomas N. Layton, Stanford University Press, 1997, excerpts pp. 41-43)

As the invading Northern armies moved South, huge quantities of cotton were found and Yankee cotton-hunger “was fierce and insatiable.” Union officers could make a quick fortune seizing bales and shipping them northward to New England mills, the same ones who had themselves perpetuated slavery with dependence on Southern cotton.

Bernhard Thuersam, www.Circa1865.org

Bungling and Unprincipled Self-Seeking

“The opening of the full length of the Mississippi by the capture of Vicksburg and Port Hudson augmented the illicit traffic from all river towns into the Confederacy. General [Stephen A.] Hurlbut, himself probably corrupt and certainly drunken, explained to his superiors [in Washington] the impossibility of imposing controls. “A perpetual flood of fraud, false-swearing, and contraband goods runs through the city,” he wrote. Even the pickets are bribed.

[US] Treasury agents were really no more culpable than Army officers, and old cotton-brokers no worse than Chicago commission-men; Yankees and foreigners could be equally unscrupulous.

Ben Butler, who had held command [at New Orleans] in 1862, believed in generous trade policies, and one recipient of his generosity was his brother, Andrew Jackson Butler. The operations of both the Butlers became highly complicated . . . When military expeditions were sent out ostensibly for the chastisement of guerillas, but with cotton also in view, and shallow-draft steamers began to scour the bayous with the same objectives, the situation became still more tangled.

[Secretary of the Treasury Salmon] Chase’s special agent, George S. Denison . . . found that a great deal of contraband material was being shipped to the Confederates in exchange for cotton, and that [Northern] military men of high rank who lent their cooperation were reaping large harvests.

It was clear, he wrote Chase, that Ben Butler “knows everything, controls everything, and should be held responsible for everything.”

On the Red River in the spring of 1864, the carnival of trade and speculation reached its height for a single campaign. General [Nathanial P.] Banks, who also had to carry the ignominy of defeat, suffered censure . . . Officer after officer, in testimony that runs for pages despite sharp questions put by Congressmen, charged that the Navy seized wagons and mules right and left, ranging far into the interior away from the Red River and branding cotton “C.S.A.” so that they with impunity then add “U.S.N.”

Porter went on to attack the Army, writing: “General Banks had come up in the steamer Black Hawk, loaded with cotton speculators, bagging, roping, champagne, and ice. The whole affair was cotton speculation . . .”

At times, in the aftermath of the Red River campaign, it seems that every participant was misrepresenting everyone else. The only definite certainty is that it was a time of bungling, lying, chicanery, corruption, and unprincipled self-seeking, all to the injury of the [Northern] war effort.”

(The War for the Union: the Organized War 1863-1864, Volume III, Allan Nevins, Charles Scribner’s Sons, 1971, excerpts pp. 355-361)

On April 9, 1863, the Greensboro (North Carolina) Patriot wrote that blockade-runners arrived at Wilmington and Charleston every week, “all doing thrifty business with their Yankee friends in Boston and New York through Nassau.” Gen. W.H.C. Whiting wrote President Davis late in the war from Fort Fisher that runners carrying Northern goods seemed to penetrate the enemy blockade easily.

Bernhard Thuersam, www.Circa1865.org

War for Immense Profits

“The amount of greed and corruption that attended the business of blockade-running was about what might have been anticipated, and involved not only Southerners and Britons, but some grasping Yankees. The contraband commerce had all the attractions of gambling for high stakes . . . the stocks of some blockade-running corporations, Southern or British, rose to mountain heights – even $6,000 a share!

More than half the ships and cargoes tried in the New York prize-court were British, but the British name too often concealed Northern interests. Some Yankees were as ready to evade trading-with-the-enemy laws as their fathers had been in 1812.

Northern goods, their labels altered to flaunt famous British names, passed through Boston or New York on long roundabout trips, Boston-Bermuda-Wilmington, or New York-Nassau-Mobile, and sometimes shipped with bold directness to Charleston or Matamoros.

At its height, the New York trade with Bermuda, Nassau and Havana was scandalously large. A “ring” of dealers, shippers and blockade-runners helped organize the traffic and made arrangements with the Custom House for shipments.

By the autumn of 1862 a brisk traffic, half-furtive, half open, sprung up, not only in occupied areas but where Union troops faced Confederate troops. Scores of [Northern] officers intent upon commercial deals, and a much greater number of merchants anxious to trade in cotton, tobacco and general merchandise flocked down, first to Memphis, then to Little Rock and Helena, and finally to Vicksburg.

Read Admiral [David] Porter said of the [United States] Treasury agents sent down by [Secretary Salmon] Chase to control the situation: “A greater pack of knaves never went unhung.” Yet his own gunboat crews were equally unscrupulous, one Senator later declaring that they had made a hundred millions during the war.

And David Perry of the Fifth Illinois Cavalry, son of a mayor of Bloomington, Illinois, made a yet graver charge: “Many lives have been sacrificed during the past summer and fall,” he informed his father as the year 1862 ended, “that certain high officers might make their fortunes with cotton-trade, and many a poor darkey who had fled to us has been traded off, by officers holding high positions in the army and before the world, for cotton.

The truth is, when an impartial history of this war shall be written, it will expose a greater amount of fraud and corruption than the world has ever before seen. Even your Bloomington general, Hovey, traded Negroes for cotton and sacrificed many lives . . . for the sole purpose of making money.”

(The War for the Union: the Organized War 1863-1864, Volume III, Allan Nevins, Charles Scribner’s Sons, 1971, excerpts pp. 342-343; 353-354)

Eli Whitney was a mechanically-talented Massachusetts farm boy who graduated from Yale and ventured South in 1792 to teach school in South Carolina. As he watched plantation slaves working laboriously to pick “the fuzzy, stubborn seeds from “vegetable wool,” at an average rate of two pounds per day,” he quit his teaching position to concentrate on the invention to speed the chore. Cotton production soared from 10,000 bales in 1793 to double that in 1796, and 180,000 by 1810 – Whitney can be said to have single-handedly perpetuated slavery.

Bernhard Thuersam, www.Circa1865.com

The Genius of Eli Whitney

“The Agricultural Society of South Carolina, second of its kind in the United States, came into being in 1785 “for promoting and improving agriculture and other rural concerns.” Its high-minded purposes were defined by Thomas Heyward, Jr., its first president, who expounded: “After having gloriously succeeded . . . in terminating a war . . . it is incumbent upon us equally to endeavor to promote and enjoy the blessings of peace. Agriculture was one of the first employments of mankind . . . [and] one of the most innocent and at the same time the most pleasing and beneficial of any . . .”

This interest in diversified agriculture was further evidence that the institution of slavery – a national rather than sectional cancer – was well on its way to extinction before the American Revolution. Jefferson was strongly opposed to it; his original draft of the Declaration of Independence contained a denunciation of it. Early attempts along these lines were thwarted by the British crown.

To Virginia goes the honor and distinction of being the first American State to prohibit the importation of slaves, having passed a law to this effect during the very first session of its existence under the republican government (1778). Maryland followed suit in 1783.

The tobacco planters, slavery’s principal eighteenth-century exponents, were learning slavery’s folly and coupling it with old guilts of moral shame.

So firm was the resolve and so positive was the action that there can be no doubt as to the demise of the slave during the early years of the nineteenth century, had it not been for the “sudden apparition of the great cotton crop, conjured by the genius of Eli Whitney” and dwarfing all other Southern resources by the “instant employment of the half-idle slaves, whose presence had begun to be felt as a burden.”

Without an economical means to separate the lint from the seed, cotton could not have become the ruthless king that it was. Without King Cotton, slavery would have withered and died. Without the emotionally packed issue of slavery, the newly-formed States would have arrived at a peaceable solution to their differences, because their quarrels centered around cotton and the tariff.”

(This is the South, Robert West Howard, editor, Rand McNally & Company, 1959, excerpts pp. 136-138)

One of the outcomes of the devastation and destruction was a need for Southern men to find employment and rebuild their impoverished section, and this most often meant working under the direction of the conqueror. Though Lee refused “to accept a sinecure from a Northern business concern,” many former Confederate officers became the agents or attorneys of the invading capitalists and “took action that had all the earmarks of scalawagism”, in the words of the author below.

Bernhard Thuersam, www.Circa1865.com

The South and Northern Finance Imperialism

“One of the prices the South pays for its progressive industrialization is increasing servitude to Northern capital. New York has grown into the most autocratic city-state of modern times, with the Southern province of the United States as one of its important colonies.

The great financial houses of that and kindred cities control most of the region’s strategic industries, having sent out a second and third generation of carpetbaggers to found factories or to purchase those already existing. The Southern industries owned and controlled by outsiders include the region’s railroads, its coal fields, its iron reserves, its electric power, and its gas, Sulphur, and oil sources.

The existence of Northern patent monopolies and the absence of local machine manufacturing permit outside direction even of industries locally owned. The South manufactures its own cast-iron pipes, steel rails and bridges, and oils, but not its hardware, locomotives, automobiles, clocks, radios, dynamos, drugs, and many other finished products requiring the highest skill to produce and bringing in the highest profits.

Retail profits are siphoned out of the section by Northern-owned chain stores. The Southern businessman usually is a mere factor or agent of Northern principals, who control both production and distribution. His function is to sell [Northern articles] endeared to the Southern public through advertising. Some of these articles are as worthless as the wooden nutmegs the Yankee peddler is said to have imposed upon the public in ante-bellum times.

In 1937, economist David Coyle estimated that the South was paying out a billion dollars annually in excess of its income. It balanced its credit by selling property to investors from other sections of the country, by borrowing, by going bankrupt, and by destroying forests and lands to secure immediate incomes.

The possibility of the South revolting against its debtor status, in the manner of the Revolutionary planters against their British creditors, is ruled out by the outcome of the Civil War. That Southern leaders are able to reconcile the sons and grandsons of those who followed Robert E. Lee and William Jennings Bryan to the economic domination of the North caused Benjamin Kendrick to cry out bitterly in 1942:

“We are confronted by a paradox more amazing and ironical than any ever conjured by the imagination of Gilbert and Sullivan. The people of the South, who all their lives have suffered deprivation, want, and humiliation from an outside finance imperialism, followed with hardly a murmur of protest, leaders who, if indirectly, were nonetheless agents and attorneys of the imperialists.” What was true in 1942 is truer thirty years later.”

(The Everlasting South, Francis Butler Simkins, LSU Press, 1963, excerpt pp. 55-57)

When the orphaned and penniless Maunsel White arrived in New Orleans in 1801 from his native Ireland, it was a small town controlled by Spain. Only thirteen, he clerked in a counting-house for sixteen dollars a month, half of which he paid to a French teacher to learn the language. He later explained his son that “I had a proud spirit” and let no obstacle stand in his way. That son later wrote of his deceased father that as a great merchant, “he first made a name & his name made the money – none stood higher for integrity – his word was inviolable as an oath.” White was proud of his sugar plantations and purchased the best machinery from New York manufacturers, and envisioned strong political and commercial ties between the South and the developing West, a union Northern which northern political interests could not abide.  White did not live to see the devastation and defeat of the South,  passing peacefully at his Deer Range Plantation on December 17, 1863.

Bernhard Thuersam, www.Circa1865.com

Maunsel White, Irish Immigrant

“Behind the highest pile of oyster shells of any of the patrons of the old Gem Restaurant in New Orleans could frequently be found the great merchant, Maunsel White. With the gourmet’s taste for oysters, he concocted a peppery sauce which his Negro servant carried with his when the entered his favorite restaurant. Called the “Maunsel White Sauce,” it later received the name of tabasco sauce.

Gradually Maunsel White established himself as a reliable and successful factor in selling crops of the planters and forwarding plantation supplies to them. An important step in this was to secure the cotton business of Andrew Jackson. Jackson had become acquainted with the young merchant when White served as the captain of a volunteer company under him at the Battle of New Orleans.

To the task of superintending his four plantations, White brought a keen sense of business and great energy. “I am up at [3 to 4 o’clock] in the morning, and all day at the Sugar House or Field,” he wrote during the grinding season of 1847 when he was sixty-four years old.

When one of his female slaves died from an accident at the sugar mill which crushed her hand and arm, he wrote to the Northern manufacturer of the mill, “this melancholy accident has caused myself and family the most sincere sorrow, as we view our Slaves almost in the same light as we do our children.” Although he bought many slaves, he refused to sell any of his own servants, explaining, “I have made myself a solemn promise never to sell a Negro – it is a traffic I have never done, I had rather give them their liberty than sell them.”

While his fortune was intact, White made generous gifts to the recently founded University of Louisiana at New Orleans . . . [and] was elected a member of its first board of administrators. In September 1847 he announced that he would donate to the infant university and endowment of lands to provide an income of one thousand dollars a year.

He became one of the early advocates of home education for Southern youths and the opponent of sending them to schools and colleges in the North, where they would be exposed to [alien doctrines].

White advised his son [Maunsel, Jr.] not to think about becoming a politician, because he questioned the happiness of politicians. He was particularly incensed by the Wilmot Proviso, which he thought was calculated “to do more injury & make a wider breach between the North & the South than any other subject ever brought forth in our political strife.” Although he declared himself to be a Democrat, White also stated that he would never sell himself to any party.

When he invested money in a cotton mill at Cannelton, Indiana, in 1849, he wrote that he wished to see the interests of the South and West united so that nothing on earth might separate them. Though he affirmed his attachment to “the perpetuity of the glorious union,” he said it must be “a Union of equals, jealous of their own & each other’s rights and submitting to no infractions of the constitutional compact as it was framed by our Republican Fathers.”

He developed a strong prejudice against Yankees as a result of sectional strife . . . On May 16, 1848, he wrote to his Richmond factor that he suspected that the Yankee captains of the ship which carried his molasses and sugar were dishonest, adding “Curse the Whole Race of Yankee Captains.” He advised his factor in Philadelphia to who he consigned his sugar crop to watch the captain of the ship carefully, for he was a shrewd Yankee.”

(The Mind of the Old South, Clement Eaton, LSU Press, 1964, excerpts pp. 69-73; 75-77; 80-84; 87 )

Add to the sectional tariff issues below the irony of Northern abolitionist agitators, many of whom were the sons and grandsons of those who had grown wealthy through New England’s slave trade which populated the South with laborers, who fomented race war in the South. It was New England slave ships which brought slaves from Africa; New England mills were busy consuming slave-produced cotton; and Manhattan banks were eager to lend Southern plantation owners money at low interest to buy more land to produce more cotton.

Bernhard Thuersam, www.Circa1865.com

The Disappearance of Wealth from the South

“The South maintained that the Tariff Acts of 1828 and 1833 were unconstitutional, since Congress had the power to levy taxes only for revenue and the taxes have to be uniform. The act then passed was sectional, since by it, the South, while she had only one-third of the votes, paid two-thirds of the custom duties . . .

[And] as our government was a compact, the government could not be superior to the States – so Congress was overstepping its powers, and [the South] contended that a tax on one part of the country could not be laid to protect the industries of another part. (United States Constitution – Section VIII., Clause 1)

What had the North to say to this?

When Thomas Hart Benton, of Missouri, in referring to the Tariff Acts, said:

“Under Federal legislation the exports of the South have been the basis of the Federal revenues – everything goes out and nothing is returned to them in the shape of Federal expenditures. The expenditures flow North. This is the reason why wealth disappears from the South and rises up in the North. No tariff has yet included Georgia, Virginia or the two Carolinas [in its largesse], except to increase the burdens imposed upon them.

The political economists of the North, Carey, Elliott, Kettel and others who have studied the source of National wealth in America, said: “Mr. Benton is right in the explanation given of the sudden disappearance of wealth from the South.”

Then the editor of “Southern Wealth and Northern Profits,” a Northern man, said:

“It is a gross injustice, if not hypocrisy, to be always growing rich on the profits of slave labor; and at the same time to be eternally taunting and insulting the South on account of slavery. Though you bitterly denounce slavery as the “sum of all villainies,” it is nevertheless the principal factor (by high tariff) of your Northern wealth, and you know it.”

(Truths of History, Mildred Lewis Rutherford, Southern Lion Books, 1998 (originally published 1920), excerpts pp. 84-85)