Circa1865

“Another real Victorian virtue, not to be discredited by many imaginary Victorian virtues, [was] a strict standard of commercial probity . . . when the notion of success was mixed up not only with cynicism but with a queer sort of piratical romance. [But today] the favorite modern ideal in morals and even in religion, especially the religion popularized in the papers for millions of modern businessmen, is the word “adventure.”

The most menacing monster in morals, for the businessmen of my old middle-class, was branded with the title of “adventurer.” In later times, I fancy, the world has defended some pretty indefensible adventurers by implying the glamour of adventure.

My own father and uncles were entirely of the period that believed in progress, and generally in new things, and all the more because they were finding it increasingly difficult to believe in old things; and in some cases in anything at all. But though as Liberals they believed in progress, as honest men they often testified to deterioration.

I remember my father telling me how much he had begun to be pestered by swarms of people wanting private commissions upon transactions, in which they were supposed to represent another interest.

He mentioned it not only with the deepest disgust, but more or less as if it were a novelty as well as a nuisance. He was himself in the habit of meeting these unpleasant people with a humorously simulated burst of heartiness and even hilarity; but it was the only sort of occasion on which his humour might be called grim and ferocious.

When the agent, bargaining for some third party, hinted that an acceptable trifle would smooth the negotiations, he would say with formidable geniality, “Oh, certainly! Certainly! So long as we are all friends and everything is open and above board! I am sure your principals and employers will be delighted to hear from me that I’m paying you a small –__”

He would then be interrupted with a sort of shriek of fear and the kind diplomatic gentleman would cover his tracks as best he could in terror. “And doesn’t that prove to you,” said my father with innocent rationalism, “the immorality of such a proposal?”  

(The Autobiography of G.K. Chesterton, Sheed & Ward, 1936, excerpt pp. 16-17)

It is estimated that the Civil War cost $8 billion, which, including destruction of property, derangement of the power of labor, pension system and other economic losses, is increased to $30 billion. To this total is added the human cost of 620,000 battlefield deaths – the war killed one out of every four Southern white males between 20 and 40 — and at least 50,000 civilians dead from indiscriminate Northern bombardment of cities, and starvation.

In the immediate postwar and its two million men in blue mustered out, the Grand Army of the Republic (GAR) became a rich political endorsement as Northern politicians lined up to offer higher pensions in return for votes.  

The Most Costly Price of the Civil War

“War always intrenches privilege in the councils of the nation. The power of the financier is increased. He is called in to rule. Otherwise the state would not go on. Such was our own experience as a result of the Civil War.

Prior to 1861 a democratic spirit prevailed in the nation. Economy was the note in government expenditures. The Civil War ushered on a new era. The need for revenue brought about a merger of the protected interests of Pennsylvania and New England and the banking interests of Wall Street with the Treasury Department, a merger which has continued ever since.

Corruption born of army contracts and war profits penetrated into Congress and the various departments of the government. The public domain of the West was squandered in land grants to the Pacific Railroads with no concern for posterity. The richest resources of the nation were given away. For years after the war, privilege was ascendant and democracy reached to lowest ebb in our history.

Taxes were collected not for the needs of the government, but to maintain a protectionist policy. Revenues were squandered and pork-barrel methods prevailed. Pensions were recklessly granted to prevent a treasury surplus, while appropriations for rivers and harbors, for public buildings, and other purposed became the recognized practice of congressional procedure.

For fifty years the reactionary influences which gained a foothold during the Civil War maintained their control of the government. This was the most costly price of the Civil War, far more costly than the indebtedness incurred or the economic waste involved.”

(Why War? Frederic C. Howe, Charles Scribner’s Sons, 1918, excerpt pp. 313-314)

James William Fulbright, 1905-1995, was born in Missouri and reared in Arkansas, which he eventually represented both in the House and Senate. He signed the Southern Manifesto which declared the Supreme Court’s 1954 Brown v. Board of Education ruling as “a clear abuse of judicial power” as only Congress can legislate; in 1964 and 1965 he opposed both the Civil Rights Act and Voting Rights Acts as unconstitutional invasions of clear State authority.

Fulbright additionally questioned the reasons why the Army, Navy and Air Force each spent “millions of tax dollars annually on persuasion of the public that its particular brand of weaponry is the best.” At the conclusion of the 1861-1865 war, Lee wrote to Lord Acton that “The consolidation of the States into one vast empire, sure to be aggressive abroad and despotic at home, will be the certain precursor to ruin which has overwhelmed all that has preceded it.” 

A Militaristic and Aggressive Nation

“Violence is our most important product. We have been spending nearly $80 billion a year on the military, which is more than the profits of all American business, or, to make another comparison, is almost as much as the total spending of the federal, State, and local governments for health, education, old age and retirement benefits, housing, and agriculture. Until the past session of the Congress, these billions have been provided to the military with virtually no questions asked.

Many people looked on [the Sentinel ABM program] as they now look on Safeguard, not as a weapon but as a means of prosperity. For the industrialist it meant profits; for the worker new jobs and the prospect of higher wages; for the politician a new installation or defense order with which to ingratiate himself with his constituents.

Military expenditures today provide the livelihood of some ten percent of our work force. There are 22,000 major corporate defense contractors and another 100,000 subcontractors. Defense plants or installations are located in 363 of the country’s 435 congressional districts. Even before it turns its attention to the public at large, the military has a large and sympathetic audience for its message.

These millions of Americans who have a vested interest in the expensive weapons systems spawned by our global military involvements are as much a part of the military industrial complex as the generals and the corporation heads.  In turn they have become a powerful force for the perpetuation of these involvements, and have had an indirect influence on the weapons development policy that has driven the United States into a spiraling arms race with the Soviet Union and made us the world’s major salesman of armaments.

A Marine war hero and former Commandant of the Corps, General David M. Shoup, has said: “America has become a militaristic and aggressive nation.”

(The Pentagon Propaganda Machine, J.W. Fulbright, Liveright Publishing, 1970, excerpt pp. 12-13)

About 400 years before Christ, Athens, was perhaps the first republic overtaken by economic depression with widespread unemployment and many flocking to the Agora seeking aid. First the farmers were granted handouts, then came the laborers and others wanting their share. The ancient racket continues unabated today.

The New Deal: An Old Racket

“It is clear from Plutarch’s account that Pericles, the political ruler of Athens, understood the cause of the trouble. Plutarch describes the character of the workers who thronged into Athens clamoring for relief. They were, he tells us, brass workers, wood workers, smiths, moulders, founders, stonecutters, goldsmiths, ivory workers, and painters. It was perfectly obvious that Athens was in a depression because of the collapse of the building industry and particularly the extensive shipbuilding industry at Piraeus, the port of Athens. In other words, the capital goods industry was in a slump.

Its effects spread to others – to farmers, who were the first to get grants in aid through the munificence of the great man, Pericles. This encouraged the idle workmen to demand attention and they were given a dole amounting to six cents a day.

Pericles tried to lessen the effects of the depression by settling the unemployed in distant colonies. He sent 500 to the Isle of Naxos, 250 to Andros, a thousand to Thrace, and others to various colonies of Attica. And Plutarch observes that he did this “to discharge the city of the idle,” who were, by reason of their idleness, “a busy and meddlesome crowd of people.”

All this brought down the scorn of the wealthy conservative, Thuycidides (not the historian), who estimated that some 20,000 citizens one way or another were on the government payroll – which was something of an exaggeration.

In the end, Pericles tried to deal with the depression by a huge program of public works . . . a diminutive empire caught in the grip of those merciless economic laws which torment the far mightier empires of today. Thus trapped in an economic crisis, he turned to the second remedy of a sick society – borrowing.  Pericles decide to “borrow” [public defense funds guarded in the sacred treasury] to set in motion a big building program.

Pericles, the arch politician, insisted that [the defense funds] were in the hands of Athens to be used as it saw fit. He prevailed, and these funds were used to erect that magnificent collection of buildings on the Acropolis . . . But, in the end, Pericles turned to the third and most destructive and evil of the elements of his Athens New Deal – war.

The war with Sparta and her allies lasted for many years and ended with the downfall and humiliation of Athens and provided the tragic climax of this earliest of New Deals. Depression, caused by collapse of the heavy industries; then government doles paid for with taxes; great building and military enterprises to create work paid for with borrowed funds – in this case misused money – and finally war. Thus ended the New Deal in Athens.”

(The New Deal: An Old Racket; Forgotten Lessons: Selected Essays of John T. Flynn, Gregory P. Pavlik, editor, Foundation for Economic Education, Inc., 1996, excerpt pp. 55-56)

Shortly after the Bolshevik revolution and consolidation of power in Russia came the Great Depression and the opportunity for a charismatic American politician to introduce his own version of a planned economy, fiat money and social programs funded by deficit financing.

American Welfare State  

“My father was a true liberal as it was defined prior to World War II. He was also a highly regarded and respected liberal, in the forefront of his profession of journalism. At that time, most of those in the newspaper field were staunch supporters of the Constitution as originally adopted; that is, they believed that the role of the federal government was quite limited. And they also believed in the free enterprise system. There were few leftists in their midst.

Since then the term “liberal” has undergone a radical change in meaning, and now means almost the reverse of what it meant when my father was practicing his profession before World War II. Under the present-day meaning of the word “liberal” my father would now be called a conservative. In addition to his strong views about the superior qualities of the free enterprise system and the need for a diminished role for the federal government, he was a firm believer in high standards of morality for the family, and for the communities in which the families lived and raised their children.

In his later years he was subject to heavy criticism, much of it slanderous, but I never heard anyone questioning his integrity. In his search for the truth as a journalist, he had great respect for all obtainable facts and information required for reaching judgmental decisions.

The passage in 1913 of the Constitutional Amendment to tax income greatly increased the power of the federal government to control and regulate the economy, but the exercise of this power was quite modest until the New Deal and World War II. This power, together with the gigantic demands of the war, resulted in an enormous involvement of the federal government in the total economy of the nation.

And with it came much more sympathy by the general public and the media for socialistic and planned governmental programs. Support for these programs also prospered in colleges, universities, and religious groups. The Welfare State was beginning to get a firm foothold on our shores.”

(Forgotten Lessons: Selected Essays of John T. Flynn, Gregory P. Pavlik, editor, Foundation for Economic Education, Inc., 1996, excerpt pp. v-vi)

The fall elections of 1862 witnessed severe setbacks for Lincoln’s party due to several factors. Resistance to arbitrary arrests, illegal suspension of habeas corpus and homeless slaves moving northward all accounted for Democratic victories at the polls. But the emancipation issue and its ramifications were paramount, with Senator John Sherman of Ohio contending that the “ill-timed [emancipation] proclamation contributed to the general result.” The Republican party was never “anti-slavery,” and knew victory at the Northern polls depended upon confining black people to the South.

No Diversity in Illinois

“Secretary of War Edwin M. Stanton . . . committed a blunder that partly undermined Republican candidates in the Midwest. Throughout the summer [of 1862] Union troops operating in the Mississippi Valley channeled hundreds of Negro refugees and freedmen to the federal commander at Cairo, the southernmost town in Illinois.  On September 18, 1862, to alleviate this pressure, Stanton authorized the commanding general at Cairo to turn Negro women and children over to committees which would provide them with employment and support at the North.  

This order, which violated the Illinois Negro exclusion law, was greeted with dismay. [Midwestern] Democrats took full advantage of their political windfall. Abusing the black “locusts” from the South and describing them as “the first fruits of emancipation,” they portrayed the emancipation proclamation and the colonization of Illinois as parts of a Republican plot to Africanize the entire Middle West.

Frightened citizens held mass meetings denouncing Stanton’s action and the black inundation. Retreating pell-mell, the Republicans explained that the freedmen would only be in Illinois temporarily and that emancipation offered the best hope for getting the Negroes out of the State.  After the war was over, they would “skedaddle back to the sunny clime of Dixie.”

Leonard Switt, a personal friend of Lincoln and a Unionist candidate for Congress, hastened to say that he was and always had been opposed to the introduction of free Negroes into Illinois. A supporter of the Union party wrote Governor Richard Yates that the “scattering of those black throngs should not be allowed if [it] can be avoided . . . and with confirmed prejudices and opinions of our people against the mingling of the blacks among us we shall always have trouble.”

On October 13, 1862, Yates wired the President, telling him of the damage being done to their cause in Illinois. The next day David Davis, a close friend of Lincoln, advised the President that it was essential that no more Negroes be brought into the State while the elections were pending.” There is danger in the Election here,” he added, “growing out of the large number of Republican voters, who have gone to the war . . . and of the Negroes, coming into the State.”

But Stanton, presumably with Lincoln’s approval, had already acted on October 13 by forbidding further shipments of blacks out of Cairo. Republican journals now happily announced that the Democrats had been deprived of their sole issue.”

(Free, But Not Equal: The Midwest and the Negro During the Civil War, V. Jacque Voegeli, University of Chicago Press, 1967, excerpts pp. 60-61)

To underscore the following excerpts, author George Thayer states that “We live in an age of weapons. Never before in the history of mankind have weapons of war been so dominant a concern as they have been since 1945.” Thayer writes that after the second war to end all wars, the US “had given away $48.5 billion worth of arms and military supplies to 48 nations.” One of these was the Soviet Union of Josef Stalin, who Roosevelt had armed to the teeth and who immediately became the US’s postwar primary adversary.

Prosperity Through Armaments

“In the twenty-four years since 1945, there have been fifty-five wars of significant size, duration and intensity throughout the world. This means that mankind faces a new and violent conflict somewhere in the world slightly more often than once every five months, any one of which is capable of provoking a holocaust.

If one adds to this total all the coups, large-scale riots and clashes of unorganized, low-order violence, then the total of postwar cases of armed conflict that have had significant impact on the course of history would number in excess of fifteen score – more than one per month.

Today we are far along the way to losing our sense of proportion, for by any definition many of these wars have been quite large. For instance, bombing tonnage in the Korean War exceeded all the tonnage dropped by the Allies in the Pacific Theater of World War II. In the “small” six-day Sinai War of 1967, more tanks were committed to battle than by the Germans, Italians and Allies together at the crucial twelve-day battle of El Alamein in 1942. And from July 1965 to December 1967, more bomb tonnage was dropped on Vietnam than was dropped by the Allies on Europe during all of World War II.

Consider some of the political consequences that today’s arms trade have produced:

The fall of Germany’s Erhard government in 1966 can be blamed in large part on Bonn’s purchases of American military equipment which it could not afford and did not need.

The cancellation of the Skybolt missile by the United States in 1962 was one of the contributing factors that led to Prime Minister MacMillan’s resignation in 1963.

The Pakistan-India War of 1965, in which American equipment was used on both sides, produced two results adverse to United States interests: it forced Pakistan to take a more neutral position in world affairs, and it forced India to consider manufacturing nuclear weapons.

Had there been no large infusion of American weapons into the area (ostensibly as a defense against communism), the war would not have taken place.”

(The War Business: The International Trade in Armaments, George Thayer, Simon and Schuster, 1969, excerpts pp. 17-21)

Only hours after the Pearl Harbor attack on 7 December 1941, US naval commanders in the Pacific were ordered to “execute unrestricted air and submarine warfare against the Japanese.” This, ironically, is the very policy which brought the US into the First World War, though it would not be until September 1943 that US submarines in wolf packs would decimate Japan’s shipping. Also, Claire Chennault of “Flying Tigers” fame was urging the firebombing of Japan’s cities well before Pearl Harbor. General Curtis LeMay, architect of the firebombing of Japanese cities, commented after Hiroshima that he thought the nuclear bomb unnecessary as nothing of military value remained to be bombed. It was purely of terror value.

“Now I am Become Death”

“Americans had entered the war violently opposed to the bombing of civilians, and during the campaign in Europe had generally opposed British terror bombing in favor of the costly but less indiscriminate technique of daylight “precision” air raids.  [With the order of 7 December], this changed in principle almost immediately in the Pacific.

Even a month prior to Pearl Harbor, George Marshall had instructed aides to develop contingency plans for “general incendiary attacks to burn up the wood and paper structures of the densely populated Japanese cities.”  

Three years later, with the arrival of the very long-range B-29 heavy bomber, the M-47 and M-69 napalm bombs, and General Curtis LeMay to command the Twentieth Air Force, these plans came to fruition.

On the night of 9 March 1945, 334 B-29s armed only with incendiaries would attack Tokyo at low levels, and in the ensuing fires 267,000 buildings would burn and over eighty-three thousand people would die. Japanese air defense against such night attacks was almost nonexistent, nor would it improve. By June, over 40 percent of Japan’s six most industrial cities had been gutted and millions dehoused.  Yet the Americans had a better way.

It is clear that the primary motive for the program was fear that Nazi Germany would develop nuclear weapons first. However, Ronald Powaski points out that, as early as November 1944, American officials were aware that Germany had no viable nuclear program, and the surrender in May 1945 made this a certainty. Despite this, work on the Manhattan Project not only continued but accelerated.

No one considered the Japanese a threat to develop a bomb. Rather, the bomb was being built to be used. On 1 June President Truman accepted recommendations that it be dropped on Japan as soon as possible – “without specific warning,” he recalled in his memoirs. “When you deal with a beast,” Truman wrote several days after, “you have to treat him like a beast.”

Less than a month earlier, the bomb’s chief designer, J. Robert Oppenheimer, as he watched its first test, remembered some lines from the Bhagavad Gita: “Now I am become death, destroyer of worlds; waiting the hour that ripens to their doom.”

(Of Arms and Men: A History of War, Weapons and Aggression, Robert L. O’Connell, Oxford University Press, 1989, excerpt pp. 293-295)

“It is amazing how otherwise intelligent people still imagine that, in our complex modern society, public order can be maintained by having certain elementary rules of conduct appropriate to simple rural communities followed by millions of individuals.

These latter are in fact grossly unequal in economic power, and each individual, or legal person, including the billion-dollar corporation, is left free to interpret the Constitution for himself, and to hire as many lawyers as his means will allow to champion through endless litigation his particular interpretations.

Only the lush opportunities of the opening of the earth’s largest and richest area for appropriation and settlement could furnish enough to be grabbed off by almost everyone to make it possible to maintain public order under such a regime, which Thomas Carlyle once characterized as anarchy plus a constable.

I find the ideal of a classless, stateless, government-less society of workers enjoying social order and material abundance fantastic and unattainable.  It appears unattainable for the reason that social order requires government and administration by a ruling class or power-exercising class which must always be an aristocracy of management, however selected, operating through some set of mechanisms of social control, economic as well as political.

There is something vicious in the wish to impose on future generations our scheme of values. The egotistical wish to define the values of future generations is common both to liberal constitutionalists and the communist believers in the classless society of the future. What right or logical reason can we possibly have to take it for granted that our values or ideals will be acceptable to future generations or appropriate to their material situation?

Only the belief that we have received a revelation of eternal truth can rationalize such a pretentious assumption.”

(The Coming American Fascism: The Crisis of Capitalism, Lawrence Dennis, Harper & Brothers, 1936, excerpts pp. 4; 7-8)

The feudal lord of the manor mentioned below could have been European, Asian, Arab or African owners of serfs or slaves.  A North German serf in Mecklenburg belonged to and worked the land of his lord, owning little more than his clothes and cooking utensils. But he and other serfs were essential to the lord for agricultural production, as in the American South and elsewhere in the world, and thus could not be abandoned.  

Feudal Lords, Modern Capitalists and The Dole

“The feudal lord of the manor was quite as much a property owner as the millionaire under modern capitalism. He had property rights in the tools of production, and often directed the processes of production. But unlike the man of property under modern capitalism, he could never make a decision in respect of his property rights, one of the results of which, would be widespread unemployment and destitution, for, as a practical matter, he could not expel the serf from the land or deny him the use of the land and some elementary capital for the production of food, shelter and clothing.

Modern capitalism is the first important system of property rights to allow property owners to make decisions which result in large scale unemployment. The much vaunted freedom of modern capitalism is largely a matter of the freedom of property owners from social responsibility for the consequences of their economic choices.  It is a matter of the freedom of property owners not to invest their savings if the profit incentive is not considered sufficient.

To say that it is also a matter of the freedom of the worker to abstain from work is to utter a shallow mockery of human necessity. The rich man is, in a practical sense, free to withhold his savings from investment. The poor man is never free in any but a legal sense and absurd sense to withhold his labor from the highest bidder, however low the bid, if, as the principles of sound capitalism require, so to withhold his labor is to starve.

At the present time, one of the fundamental rules of sound capitalism is being violated by the payment of the dole, which prevents a man from starving and thus enables him to withhold his labor from the highest bidder if the bid is not materially higher than the amount obtainable from the dole.”  

 (The Coming American Fascism: The Crisis of Capitalism, Lawrence Dennis, Harper & Brothers, 1936, excerpt pp. 22-23)