Jay Cooke's War Hustle

Lincoln could not have waged war upon the American South without troops and the immense amount of money needed to pay for them, their equipage and assorted public relations campaigns to justify war.  For this he turned to banker Jay Cooke and his creation of war bond drives which labeled non-buyers as traitors.

Bernhard Thuersam, www.circa1865.org

 

Jay Cooke’s War Hustle

“The Credit Mobilier scandal . . . brought on, or at least hastened, the panic of 1873 and turned the greatest American financier of the era into a bankrupt. This was Jay Cooke. At the time of the crash he was engaged in financing the second transcontinental railroad, the Northern Pacific.

[In the past Cooke] showed fine judgment in his promotion of canals, then of railroads. He did well with loans to the government during the Mexican War. Then the Civil War gave him his big chance and he took it famously. In 1861, the State of Pennsylvania wanted to sell a large bond issue to finance its war effort. No banker but Jay Cooke would touch it. He sold the issue quickly, with a rousing appeal to patriotism. It was the first bond issue ever sold in that manner in the United States.

Noting his success, the federal government asked Cooke for his help. Moving his office to Washington . . . Cooke organized a spectacular country-wide campaign to sell federal war bonds to the public. He engaged brass bands. He hired spread-eagle speakers. He caused hundreds of thousands of flags to be displayed at bond rallies.

His salesmen worked on commission and were not turned loose until they had been thoroughly indoctrinated with the equivalent of pep talks and had learned at least ten ways of making non-buyers look and feel like traitors. Jay Cooke, in short, set the American, or rather the Union, eagle to screaming for money. He disposed of the bond issue of 1861, and of many more that followed. They amounted in four years to nearly three billion dollars.

What Cooke had done was to invent and bring to the management of national finance a wholly new technique – the drive. With little modification it has been used ever since. The boys in blue must be supported by fighting dollars.

From his immense commissions on bond sales and his many other activities, Cooke emerged at war’s end as the greatest banker in the country. “On the day Richmond fell, Cooke marked out the lines of a pretentious country house that was to cost one million dollars [with] an Italian garden facing a wall built to resemble “the ruined castle of some ancient nobleman.” This was the fifty-two room palace named Ogontz. Here he entertained, among others, President Grant, on whom he showered fine cigars and a plentitude of whiskey and wine.

Cooke dazzled Grant as he dazzled most contemporary Americans. He exemplified, said a critic, all of the substantial upper middle-class virtues of a people “newly given to the worship of a sterile money economy.”

One might call him also a vulgarian of money; placed in his own era, being a rich vulgarian merely made him a genuine great man. More than once, editorial writers and speakers coupled Cooke’s name with Lincoln and Grant.”

(The Age of the Moguls, Stewart H. Holbrook, Doubleday & Company, 1953, pp. 51-52)

Credit Mobilier's Gentlemen Thieves

With Southern conservatives absent from the United States Congress after the war, Whig/Republicans had free rein for legislation and schemes to benefit the corporate interests which kept them in power.  Thus the Northern marriage of government and corporations gave birth to public treasury-raiding schemes like the Credit Mobilier scandal, and all under the watchful eye of President U.S. Grant.

Bernhard Thuersam, www.circa1865.org

 

Credit Mobilier’s Gentlemen Thieves

“The looting of the Erie Railroad was accomplished with the help of the easily corruptible legislatures of only two States, New York and New Jersey. It was a fairly simple business. But to loot the immense federal project of the Union Pacific Railroad required far more sophisticated talents. This monumental piece of thievery involved United States representatives and senators. It involved cabinet officers, the Vice-President of the United States, and a future President. The loot ran to approximately forty-four million dollars. It was removed almost painlessly from the Union Pacific’s coffers by a trick outfit with a fancy French name, the Credit Mobilier.

The Union Pacific was sponsored and financed by the United States. The purpose of the Credit Mobilier was to take over the contract for building the road. Stockholders of both companies were identical. They proceeded to contract with themselves to build the road at a cost calculated to exhaust the resources of the Union Pacific. The so-called profits were to be divided among Credit Mobilier stockholders.

Prominent in Credit Mobilier were Oakes and Oliver Ames, brothers of Easton, Massachusetts, who had inherited a business . . . [and the] Hon. Oakes Ames was a representative of the old Bay State in Congress.

From the day it was whelped, the double-jointed money-making machine worked perfectly. As the tracks of the Union Pacific pushed across the Great Plains, the Credit Mobilier collected the enormous bounty granted to the line from the public purse and domain. Mile upon mile the railroad was systematically stripped of its cash, which reappeared almost simultaneously as dividends for the happy stockholders of Credit Mobilier. It was, as the Hon. Oakes Ames told his comrades in the House, “a diamond mine.”

Yet the gentlemen-thieves of Credit Mobilier had a falling out when two factions fought for control; and the warfare gave those senators and congressmen who were not involved the courage to demand an investigation of the Union Pacific-Credit Moblier situation.

In an effort to forestall just such a possibility, the Credit Mobilier officers had been distributing free stock in the House and Senate, and elsewhere. But Congress was at last forced to act, and the revelations of its investigating committee . . . were so appalling that “all decent men trembled for the honor of the nation.”

No one was more hopelessly involved in the scandal than Vice-President Schuyler Colfax . . . except of course, Representative Oakes Ames of Massachusetts . . . along with Representative Brooks, also of Massachusetts . . .

Although the Congressional investigation resulted in an almost complete official whitewash, it did leave strong doubt in many minds regarding the character of such eminent men as James A. Garfield, James G. Blaine, and almost a score more.”

(The Age of the Moguls, Stewart H. Holbrook, Doubleday & Company, 1953, pp. 49-50)

 

Charles Sumner Plays the Victim

Charles Sumner’s well-deserved injuries from Senator Preston Brook’s gutta-percha were slight according to his Capitol physician, though his condition were transformed into life-threatening when an opponent appeared and Sumner required a political edge.

Bernhard Thuersam, www.circa1865.org

 

Charles Sumner Plays the Victim

“The day after the [caning] attack, Senator [Henry] Wilson, of Massachusetts, denounced Brook’s action as “brutal, murderous and cowardly assault.” [Senator Andrew Pickens] Butler, who had that morning returned, retorted “You are a liar,” and Brooks soon challenged Wilson to a duel, but he declined, as did a Connecticut Congressman.

As Brooks challenged and Northern Senators and Representatives declined, the North grew restive and a young Massachusetts House member saw an opportunity. This was Anson Burlingame, an anti-slavery man ambitious to be elected to Sumner’s Senate seat, of which there had been some chance. He now made a vitriolic speech denouncing Brooks’ assault, concluding with the statement that, if challenged, he would fight.

Brooks challenged promptly, but Burlingame sought out Lewis D. Campbell, of Ohio, for help in devising an acceptance which would preserve his reputation but avert the duel. They finally picked the Canadian side of Niagara Falls, a ruse which worked. “I could not reach Canada,” Brooks later said, “without running the gauntlet of mobs and assassins, prisons and penitentiaries, bailiffs and constables . . . I might as well have been asked to fight on Boston Common.”

When Brooks asked that another place be selected for the meeting, the Northern papers spoke of his cowardice, and praised Burlingame to the skies. But they said nothing of Brooks’ renewed insistence and Burlingame’s stubborn declination to name a closer point. At length, Burlingame left Washington secretly for the Middle West, thus avoiding further danger. A few months later Brooks died.

When Sumner was carried home after the assault, Dr. Cornelius Boyle, one of the Capitol’s best-known physicians, who attended, found him suffering solely from flesh wounds. The next day Sumner told the Doctor that he had not lost a single day’s session that Congress and he wanted to go to the Senate.

But Burlingame’s comedy of dueling had a fine Massachusetts reaction; there was some talk of electing him to the Senate and Sumner’s friends grew worried. His brother arrived and began playing up the gravity of Sumner’s wounds. Articles began appearing in the Intelligencer that Sumner had had a relapse. Dr. Boyle, who was calling twice a day, never detected any sign of fever, nor a pulse beat higher than 82 and gave the Intelligencer a correction. Soon thereafter he was discharged from the case.

The anti-slavery surgeon then employed, understanding the situation, sent Sumner back to bed and published that his condition had become quite dangerous. The Senator came forth again to testify to the House Committee but soon left Washington . . . and carried his martyrdom across the seas to European spas.”

[Note: When Dr. Boyle was before the House Committee of Investigation, he was questioned by Representative Cobb as to the nature of Sumner’s injuries. “They are nothing but flesh wounds,” he answered and repeated. “How long need he be confined on account of these wounds?” Cobb continued. “His wounds do not necessarily confine him one moment,” Dr. Boyle answered. “He would have come to the Senate on Friday if I had recommended it . . . He could have come with safety, so far as his wounds are concerned . . . Mr. Sumner might have taken a carriage and driven as far as Baltimore [47 miles] on the next day without any injury.” See also New York Herald, May 25, 1856; Washington Union, May 28, June 19, 1856]

(The Eve of Conflict, Stephen A. Douglas and the Needless War, George Fort Milton, Houghton Mifflin, 1934, pp. 236-237)

Despicable and Malevolent Old Thad Stevens

Lincoln’s devastating warfare upon the American South was followed by the brutal military-occupation regimes of Pennsylvanian Thaddeus Stevens and his Radical Republicans.

Bernhard Thuersam, www.circa1865.org

 

Despicable and Malevolent Old Thad Stevens

“[M]y first recollections of the social and political life of our little village of five hundred inhabitants are all set in a sense of mystery and uncanny terror. A dreaded name was on every man’s lips—“Old Thad Stevens.”

Lest it be thought that I am giving a prejudiced Southern record of this strange old man and his character, I quote a sentence from The Epic of America by James Truslow Adams, the greatest historian our nation has yet produced, a scholar of Northern birth and training. On page 275 Mr. Adams says:

“Unfortunately, on Lee’s dash into Pennsylvania, the iron-works of a man whose one idea had been to get rich quickly were destroyed. They belonged to Thaddeus Stevens, perhaps the most despicable, malevolent and morally deformed character who has ever risen to high power in America.”

A man from our county went to Washington to ask of President Johnson the pardon of a friend who was still a political prisoner. Johnson had declined to interfere. He learned that the President had been stripped of all power by the Radical bloc in Congress headed by Thaddeus Stevens. He must see Stevens and present his petition to the Dictator, the real ruler of America . . . And on the assassination of Abraham Lincoln, whom he loathed, this malevolent outcast had suddenly become master of the nation, determined to destroy Lincoln’s plan of Reconstruction and enforce one of his own, inspired by his black mistress.

Steven’s plan was as simple as Lincoln’s but as different as night from day. He declared the Southern States conquered territory and subject only to the will of the conqueror. He proposed to stamp out the white race of the South from the face of the earth and make their States into [Negro] territories. To this end, two years after the close of the war, he destroyed the Union, wiped out the Southern states, established five military districts instead of the eleven old commonwealths, took the ballot from the white leaders of the South, enfranchised the whole Negro race and set them to rule over their former masters. And this at a time when the people were in a life and death struggle to prevent famine.

Mr. Stevens thus paralyzed every industry of the South, turned every Negro from the field to the political hustings and transformed eleven peaceful States into hells of anarchy. His fanatical followers, blinded by passion, deliberately armed a million ignorant Negroes and thrust them into conflict with the proud half-starved white men of the South. Such a deed can never be undone. It fixed the status of these two races in America for a thousand years.”

(Southern Horizons, The Autobiography of Thomas Dixon, IWV Publishing, 1984, pp. 20-23)

 

European Jacobin Views of a Massachusetts Whig

The visiting Frenchman, Ernst D. de Hauranne, travelled only in the North for his eight months in America and was a strong supporter of the Northern invasion of the American South. Ironically, when confronted by a Radical lieutenant enraged at Americans resisting subjugation, the Frenchman could reel off the specifics of Lincoln’s destruction of liberty, and compared the despotic Northern government to the worst aspects of the French Revolution.

Bernhard Thuersam, www.Circa1865.org

 

European Jacobin Views of a Massachusetts Whig

[Diary Entry] June 28, 1864

“Here I found my first expert on American politics, Lieutenant C. He is not only a Republican, he is a Radical, and we have already crossed swords several times. Like all Americans, he pushes adulation of his country well beyond the limits of politeness and acceptability. Democracy is his oracle, his god, and he will never agree that it may not be the same thing as liberty.

If I reply that even the will of the people should have its limits, and that if it exercises in America the absolute reign that he talks about, it is more likely to pave the way to tyranny than to preserve liberty, he answers brusquely that I am French, that I don’t understand anything about freedom and that I have no right to judge his country. “Europeans,” he told me, “are born slaves. They always have been and they always will be. Only America knows what freedom is.”

“Oh,” I replied, “get off your high horse. There are many darks spots on your wonderful picture of American freedom.” Thereupon I ticked off for him the suspension of habeas corpus, the violation of the freedom of the press, the transfer of jurisdiction over many cases from civil to military courts, secret arrests, arbitrary imprisonments and all the other abuses of power that are the sad accompaniments of the Civil War. I asked him if that was what he called freedom.

“It is freedom if we have willed it. Mr. Seward boasts that he needs only ring his little bell to have absolutely anyone put in prison. That is true, but behind him are the American people who direct him. Let him strike down the rebels and traitors . . . We want martial law, do you understand? We want it, and that’s why we are still free.

“[I replied] Revolutionary power is a seed of dictatorship. Watch out that the seed doesn’t take root. You refuse to see the danger; the freedom of your neighbor means little to you! This is the way to lose your own freedom and to rush headlong into despotism one of these days. [Let’s] get to the bottom of it. I know your theories. We practiced them under the [French revolutionary] National Convention. You think you’ve discovered a new idea, but all you do is recite the sophistries of the Committee of Public Safety.”

Are these not strange opinions in the mouth of an American, notions that would fit better with the outlook of a European Jacobin or a Massachusetts Whig? We think the Americans are madly in love with their individual freedom, yet there is a school of thought which springs up to repudiate it in the name of public safety, which views freedom as submission to the multitude. Love of freedom, like all human passions, falls asleep when it is not contested.”

(A Frenchman in Lincoln’s America, Ernst D. de Hauranne, Donnelly & Sons, 1974, Volume I, pp. 67-70)

 

 

Apr 29, 2015 - Democracy    No Comments

Democracy and a Rarity of Lofty Ambition

Alexis de Tocqueville felt that the spread of egalitarian principles would make wars more rare, as democratic countries would more resemble each other and fear conflict. But the political regime of a democratic country can maintain the illusion of egalitarianism complete with beer and circus, while at the same time using mercenary forces to conquer distant resources and markets for the merchants. A people content with materialism are not militaristic, and willingly hand authority to the regime to conquer at will those who resist the mercantile state.

Bernhard Thuersam, www.circa1865.org

 

Democracy and a Rarity of Lofty Ambition

“To be comfortable, the traders and shopkeepers of the West need to make money. Indeed, according to [social scientist Werner] Sombart, they are “crazy for money.” English sports for example, unlike the German cultivation of martial arts and drill, are typical of a people who seek only physical well-being and spurious individual competition without higher aims. But it is the cowardly bourgeois habit of clinging to life, of not wishing to die for great ideals, of shying away from violent conflict and denying the tragic side of life, that seems so contemptible to Sombart.

Indeed, the merchant has no ideals. He is in every sense superficial. Merchants . . . are interested in nothing but the satisfaction of individual desires, which “undermine the very basis of a higher moral sense of the world and the belief in ideals.”

Liberal democracy is the political system most suited to merchant peoples. It is a competitive system in which different parties contend, and in which conflicts of interest can be solved only through negotiation and compromise. It is by definition unheroic, and thus, in the eyes of its detractors, despicably wishy-washy, mediocre, and corrupt. Even Alexis de Tocqueville, who wrote so admiringly about American democracy, saw the system’s limitations. He wrote:

“If you think it profitable to turn man’s intellectual and mental activity toward the necessities of physical life and use them to produce well-being, if you think that reason is more use to men than genius, if your object is not to create heroic virtues but rather tranquil habits . . . if in your view the main object of government is not to achieve the greatest strength or glory for the nation as a whole but to provide for every individual therein the utmost well-being . . . then it is good to make conditions equal and to establish a democratic government.”

Tocqueville did not deplore these limitations. He was indeed a convinced liberal. But he did, nonetheless, miss the grandeur of aristocracy and felt the tug of higher ideals. He noted, on his visit to American in the mid-nineteenth century, “the rarity, in a land where all are actively ambitious, of any lofty ambition.”

(Occidentalism, The West in the Eyes of Its Enemies, Ian Buruma & Margalit, Penguin, 2004, pp. 54-55)

Reconstruction's Hungry Locusts

The wife of the president H.L. Mencken referred to as “Roosevelt the Second” provided much of the impetus for the communizing of the Democratic party in the mid-1930s, and could be readily found supporting and speaking before openly Marxist groups like the American Youth Congress, Communist National Student League, Young Communist League, and anti-Franco communists.

In a news column she wrote that “signs of poverty and unhappiness . . . will have to disappear if [the South] is going to prosper and keep pace with the rest [of the country].” Author W.E. Debnam noted that Mrs. Roosevelt need not travel South to discover “poverty and unhappiness” as she could easily find it looking out her hotel apartment window in New York City. Debnam referred her to the root cause of the South’s unhappy condition.

Bernhard Thuersam, www.circa1865.org

 

Reconstruction’s Hungry Locusts

“May we tell you something about Reconstruction, Mrs. Roosevelt? Apparently somebody needs to tell you for only your abysmal ignorance of Southern history could possibly explain your continued carping criticism of just about everything south of the Mason-Dixon line . . . your complete failure to understand certain social and economic problems and conditions about which you pose so frequently as an authority.

Some of our modern Southern scalawags need to be reminded too . . . and that great horde of Northern editors and reporters so prone to pillory the South on every occasion while they ignore even worse conditions in their own backyard.

When the War ended, Mrs. Roosevelt, the South was licked and no one knew it better than the men who had followed Lee. The South was defeated, but it was not penitent. It had lost the War but not its pride. There was no sense of guilt but the South was resigned to the verdict of the battlefield. There was no love for the Yankee, it’s true, but also there was – speaking generally – no hate.

Most Southerners still insisted, and laughed about it, that “damnyankee” was one word, but, while they were not prepared to forget, they were ready, given a little time, to forgive their conquerors.

But [the war] wasn’t over, Mrs. Roosevelt. The South’s Gethsemane had just begun. War, as your Yankee friend General Sherman said, is hell . . . but it’s a hell that about it a certain dignity. There was nothing of dignity about Reconstruction.

There was only the studied, deliberate debasement of a proud and defenseless people. Old Thaddeus Stevens and his gang of Radical Republicans set out to murder the South in the first degree. Their murderous assault, prompted by greed and revenge, was cold-blooded and premeditated. They worked night and day at the job of killing the South twelve long years.

They almost succeeded. Only the vitality of a civilization that simply refused to die kept the South alive.

Lee’s surrender . . . came on April 9, 1865. Have you been able to stand the heart-breaking ordeal of visiting the South in April, Mrs. Roosevelt? If you have, you must have observed – if you could bear to keep your eyes open – that by the middle of April the plowing has long since ended and the planting, for the most part, is over. Already in some areas the new crop is far advanced.

But there was little plowed land in the South in that black April of 1865 and almost no planting.

On the great plantations, and on the little farms of the small land owner, the land to a large degree lay fallow and grown up in weeds. The returning soldiers made the best they could of bad situation. They had almost no livestock – few cows, few pigs, few sheep, and even fewer horses and mules. Those that hadn’t died on the battlefield had been killed or stolen by the invading soldiers.

And labor! Well, Mrs. Roosevelt, you know what happened to the farm hands of the South. Five million Negro slaves had been set free. They did little work in the fields that spring and summer . . . and one can hardly blame them. The taste of freedom lay sweet upon their tongue. Why labor in the fields? The Yankees were going to take care of them and, come Christmas – so the story went – every black man was to be the proud owner of forty acres and a mule! More than that, he was to run the government! The government of the Southern States, that is.

Only a few Northern States allowed the Negroes to vote then, and in not one instance during the tragic era did a single Negro, no matter how intelligent, hold even the lowest elective or appointive office north of the Mason-Dixon line; not even Fred Douglass of New York, who was the idol of Northern abolitionists. But in the South, Mrs. Roosevelt, it was a different story.

The Southern white man was almost completely disenfranchised while for 12 long years the newly-liberated slavers and the carpetbaggers and the scalawags ran every Southern State government and a Negro Senator from Mississippi sat in the seat in Congress that had been held by Jefferson Davis, President of the Confederacy. Our Reconstruction lawmakers, of course, had some help.

They were backed by Federal troops – thousands of them Negroes in brand new Federal uniforms. They had the guidance of Thaddeus Stevens and his Radical Republican murderers and the help of the Union League. They had also the kindly assistance of self-appointed authorities on Southern problems from New York and other Northern States who came down on short visits to give out criticism and advice. You know, we imagine, the type to which we refer.

There is no need, Mrs. Roosevelt, to review in detail that saturnalia of official corruption and waste during which the new rulers, strutting like peacocks, set out deliberately to turn to their own profit every cent of taxes that could be wrung from a prostrate land.

[And our] Northern conquerors had no intention of letting [Southern cotton] serve those who had attempted to exercise their constitutional right and withdraw from the Union. The “cotton agents” descended upon the South like a swarm of hungry locusts. First they seized 3,000,000 bales outright, claiming they had been sold to the Confederate government and were, therefore, contraband of war.

What was left – or most of it – was taxed heavily, or what was more often the case, stolen by the cotton agents in one of the greatest swindles in the history of our country. The South, screamed the Radical Republicans, had caused the war . . . and the South should pay for it.”

(Weep No More My Lady, A Southerner Answers Mrs. Roosevelt’s Report on the “Poor and Unhappy South,” W.E. Debnam, Graphic Press, 1950, pp 27-37)

 

Democrat Party Absorbs Soviet Bill of Rights

Confronted with a Democratic party platform nearly identical to theirs, the Communist Party USA (CPUSA) in early 1944 formally dissolved as a political party and perennial CPUSA presidential candidate Earl Browder announced his support of President Roosevelt for a fourth term. Browder’s vice-presidential running mate in 1936 and 1940 was James W. Ford, the first black man on a presidential ticket.

Bernhard Thuersam, www.circa1865.org

 

Democratic Party Absorbs Soviet Bill of Rights

“[The] historic Democratic party is no more, that it has been transformed into a labor party so completely that there is nothing left of it but the name. The process by which [the] transformation . . . was brought about had its beginnings during the period of “crisis government” established by Franklin D. Roosevelt and his “brain trust” in 1933. Measures having far-reaching application and effect were drafted by the President’s “advisors” and were jammed through Congress, frequently without most of the members having an opportunity to read them.

Mr. Roosevelt had been elected in 1932 by an electoral majority of eight to one . . . In such circumstances, Congress practically abdicated. It became literally a “rubber stamp” Congress. And Republican Senators and Representatives, with the majority of their constituents supporting President Roosevelt, were careful not to show too much opposition to measures which he favored. That’s why is was so easy to junk the Democratic platform of 1932 and to enact so many measures that violated the most fundamental principles of the historic Democratic party without protest from Southern Democrats, and even with their support.

One sequence [of the transformation] began during the period from 1935 to 1937, or at the very height of what Eugene Lyons has called “The Red Decade,” when it was fashionable in certain circles in New York, Los Angeles and Washington to glorify all things Russian and to affect a “revolutionary” attitude toward all existing institutions in the United States. It was a time when literally dozens of organizations with high-sounding names were set up in this country by the Communists to attract innocent “fellow travelers” and when The Daily Worker undertook to popularize the slogan “Communism is the Americanism of the Twentieth Century.”

In February, 1935, Joseph Stalin announced that the Russian Constitution would be democratized; in June, 1936, the first draft of the new Soviet Constitution was completed and published, [and adopted December 5, 1936]. It was promptly translated into English and by February, 1937, copies of it in the form of a five-cent pamphlet were available throughout this country. It immediately became the leading topic of discussion among the so-called “liberals” in the United States.

[The] Soviet Bill of Rights . . . guarantees every citizen a job . . . the right to material security in old age and also in case of illness and loss of capacity to toil . . . [and] “The equal rights of citizens of the USSR, independent of their nationality and race, in all fields of economic, state, cultural and public-political life is unalterable law. Any direct or indirect limitation of rights, or conversely, any establishment of direct or indirect preferences of citizens dependent on their racial and national membership, as well as all preaching of national exclusiveness, or hate and contempt, is punishable by law.”

[In late January, 1944] President Roosevelt revealed that the [New Deal] was being replaced by a streamlined post-war program. Here is what President Roosevelt said:

“As our nation had grown in size and stature, however – as our industrial economy expanded – [our previous life and liberty] political rights proved inadequate to assure us equality in the pursuit of happiness. We have come to a clear realization of the fact that true individual freedom cannot exist without economic security and independence. In our day these economic truths have become accepted as self-evident.

We have accepted, so to speak, a second bill of rights under which a new basis of security and prosperity can be established for all – regardless of station, race or creed. Among these are: The right to a useful and remunerative job in the industries or shops or mines of the nation; The right to earn enough to provide adequate food and clothing and recreation; The right of every business man, large and small, to trade in an atmosphere of freedom from unfair competition and domination by monopolies at home or abroad; The right of every family to a decent home; The right of adequate medical care and the opportunity to achieve and enjoy good health; The right to adequate protection from the economic fears of old age, sickness, accident and unemployment; The right to a good education.”

The striking resemblance which this whole passage bears to the . . . Soviet Bill of Rights need not be dwelt upon.

In his message to Congress on September 6, 1945, President Truman said: “The objectives for our domestic economy which we seek in long-range plans were summarized by the late President Franklin D. Roosevelt over a year and a half ago in the form of an Economic Bill of rights. Let us make the attainment of those rights the essence of post-war American economic life.”

Notably, he issued a “salute to labor” on Labor Day, 1946, and more recently on June 28, 1947 . . . he discussed the subject in an address to the National Association for the Advancement of Colored People at Lincoln Memorial in Washington. In his “salute to labor,” President Truman said:

“Labor, perhaps more than any other group, has consistently supported [FDR’s] “Economic Bill of Rights.” We must now move forward to full achievement of these objectives: useful and remunerative jobs for all; income high enough to provide adequate food, clothing and recreation; freedom from unfair competition and domination by monopoly; adequate health protection; more effective social security measures, and educational opportunities for all.”

In his more recent address to the [NAACP], by coupling these “economic” rights with other civil rights, he stated clearly . . . that it is the responsibility of the federal government to guarantee and to enforce these new rights. “The extension of civil rights today means not protection of the people AGAINST the government, but protection of the people BY the government.”

(The South’s Political Plight, Peter Molyneaux, Calhoun Clubs of the South, Inc., 1948, pp. 56-57, 67-70, 75-77, 81-84,)

Democracy Controlled with Machine Money

Republican party manager and future Senator Mark Hannah spent vast sums to ensure the election of William McKinley to the presidency in 1896, and was known as McKinley’s “political master.” It  was common in the postwar for the Republican president to have little or no say in selecting their own cabinet as these positions were already promised to party hacks and wealthy campaign contributors.  So desperate were the Republicans to maintain political hegemony after 1865 that only Democrat Grover Cleveland briefly served two terms before Woodrow Wilson in 1912.

Bernhard Thuersam, www.circa1865.org

 

Democracy Controlled with Machine Money

“[William Howard] Taft’s career would owe much to Mark Alonzo Hanna’s control of Ohio politics. Hanna, a former grocery clerk in Cleveland, had become a great merchant whose fleets transported tonnages of coal and iron ore along the Great Lakes. He was often portrayed in the press as a bully, smoking a big cigar, drinking whiskey, and stamping on the skeletons of working class women and children.

A big man, he was once described as looking like a “well-fed merchant prince from an old Dutch masterpiece.” Above all, he was the new man in party politics, the businessman who constructed a well-run machine that forced out the political adventurers who had come into Ohio after the Civil War and who were often personally corrupt and willing to prey on the rich as well as the poor.

Once Hanna became wealthy, he turned over his business to his brother and concentrated all his efforts on creating the “business state.” As he once remarked to a group of dinner companions, “All questions of government in a democracy [are] questions of money.” Eventually he became chairman of the Republican National Committee, and the most powerful boss in Republican politics. His signal triumph was putting Ohio’s governor William McKinley into the presidency in 1896, and a year later he himself served as a senator from Ohio until his death in 1904.

Will Taft was not particularly close to Hanna, but after Hanna became the dominant force in Ohio politics after 1888, Taft was responsive to the new order and backed McKinley. A telling factor that connected the Taft family to Hanna was the willingness of Taft’s brother Charles to join a “syndicate,” organized by Hanna to pay off McKinley’s debts when the governor found himself in serious trouble after endorsing large sums of notes owned by a ruined business associate. (Several future cabinet members and ambassadors were also in the “syndicate.”)

Under Hanna’s direction, political professionalism was allied to financial capitalism, whose mantra was high tariff protectionism for industry coupled with “sound money,” tying the dollar to gold. Under these conditions, foreign monies soon flowed into the United States, making the country independent of European capital markets and one of the great creditor nations of the world.”

(1912, Wilson, Roosevelt, Taft & Debs, The Election That Changed the Country, James Chace, Simon & Shuster, 2004, pp. 24-25)

Apr 25, 2015 - Democracy, Equality    No Comments

Democracy and Privileged Clases

A large democracy, in James Fenimore Cooper’s view, allow the people to “become the dupes of demagogues and political schemers” with “most of the crimes of democracies arising from the faults and designs of men of this character.”  Democracy’s ever-present manipulation of public opinion, inflamed by narrow and self-serving interests, is too often a substitute for the rule of law.

Bernhard Thuersam, www.circa1865.org

 

Democracy and Its Privileged Classes:

“The dogma of political equality produces the dogma of majority rule, and the old monarchical claim to arbitrary power is transferred to the popular majority. Hence the danger almost inevitably arises in a democracy that the state will be perverted to “a system of favoring a new privileged class of the many and the poor.”

On the other hand, there is the equally grave danger that the modern representative state will be captured by the capitalist class and transformed into a plutocracy. As the nineteenth century has progressed, democracy has found it more and more difficult to resist these twin tendencies, either of which would be fatal to the regime of economic liberty . . . [A] class conflict between capitalism and the proletariat will soon write and end to centuries of societal development.

Democracy has also led increasingly to a new and degraded form of political decision-making. Inevitably, “the consequence [of legislators at the mercy of clamorous factions] is the immense power of the lobby, and the legislation comes to be an affair of coalition between interests to make up a majority.”

(American Conservatism, In the Age of Enterprise, 1865-1910, Robert Green McCloskey, Harper, 1951, pp. 58-60)