AnotherFederalGeneral,BenjaminF。Butler,inthecourseof1861,alsoraisedtheissue,thoughnotintheboldfashionofFremont。RunawayslavescametohiscampontheVirginiacoast,andherefusedtosurrenderthemtotheowners。Hetookthegroundthat,astheyhadprobablybeenusedinbuildingConfederatefortifications,theymightbeconsideredcontrabandofwar。HewassustainedbyCongress,whichpassedwhatiscommonlycalledtheFirstConfiscationActprovidingthatslavesusedbyConfederatearmiesinmilitarylaborshould,ifcaptured,be\"forfeited\"——whichofcoursemeantthattheyshouldbesetfree。Butthisdidnotsettlewhatshouldbedonewithrunawayswhosemasters,thoughresidentsofsecededStates,wereloyaltotheUnion。TheWarDepartmentdecidedthattheyshouldbehelduntiltheendofthewar,whenprobablytherewouldbemade\"justcompensationtoloyalmasters。\"
ThisfirststageofLincoln\'spolicyresteduponthehopethattheUnionmightberestoredwithoutprolongedwar。Heabandonedthishopeabouttheendoftheyear。Thereupon,hispolicyentereditssecondstage。Inthespringof1862heformulatedaplanforgradualemancipationwithcompensation。TheslavesofMaryland,Delaware,Kentucky,Missouri,andtheDistrictofColumbiaweretobepurchasedattherateof$400each,thusinvolvingatotalexpenditureof$173,000,000。AlthoughCongressadoptedthejointresolutionrecommendedbythePresident,the\"borderStates\"wouldnotaccepttheplan。ButCongress,byvirtueofitsplenarypower,freedtheslavesbypurchaseintheDistrictofColumbia,andprohibitedslaveryinalltheterritoriesoftheUnitedStates。
DuringthesecondstageofhispolicyLincolnagainhadtoreversetheactionofanunrulygeneral。TheFederalforcesoperatingfromtheirbaseatPortRoyalhadoccupiedaconsiderableportionoftheCarolinacoast。GeneralHunterissuedanorderfreeingalltheslavesinSouthCarolina,Georgia,andFlorida。Incountermandingtheorder,LincolnmadeanotherfutileappealtothepeopleoftheborderStatestoadoptsomeplanofcompensatedemancipation。
\"Idonotargue,\"hesaid;\"Ibeseechyoutomakeargumentsforyourselves。Youcannot,ifyouwouldbeblindtothesignsofthetimes。Ibegofyouacalmandenlargedconsiderationofthem,ranging,ifitmaybe,farabovepersonalandpartisanpolitics。Thisproposalmakescommoncauseforacommonobject,castingnoreproachesuponany。ItactsnotthePharisee。Thechangeitcontemplateswouldcomegentlyasthedewsofheaven,notrendingorwreckinganything。Willyounotembraceit?Somuchgoodhasnotbeendonebyoneeffortinallpasttime,asintheprovidenceofGoditisnowyourhighprivilegetodo。Maythevastfuturenothavetolamentthatyouneglectedit。\"
ThispersuasiveattitudeandreluctancetoforcetheissuehadgreatlydispleasedtheAbolitionists。Theirmostgiftedorator,WendellPhillips,reviledLincolnwithallthepowerofhisliterarygenius,andwithafurythatmightbecalledmalevolent。
Meanwhile,aSecondConfiscationActproclaimedfreedomfortheslavesofallthosewhosupportedtheConfederateGovernment。
HoraceGreeleynowpublishedinthe\"NewYorkTribune\"aneditorialentitled,\"ThePrayerofTwentyMillions。\"HedenouncedLincoln\'streatmentofFremontandHunteranddemandedradicalaction。Lincolnrepliedinaletternowfamous。\"IwouldsavetheUnion,\"saidhe,\"IwouldsaveittheshortestwayundertheConstitution……IfIcouldsavetheUnionwithoutfreeinganyslave,Iwoulddoit;andifIcouldsaveitbyfreeingsomeandleavingothersalone,Iwouldalsodothat。WhatIdoaboutslaveryandthecoloredrace,IdobecauseIbelieveithelpstosavetheUnion;andwhatIforbear,IforbearbecauseIdonotbelieveitwouldhelptosavetheUnion。\"
However,attheverytimewhenhewrotethisremarkableletter,hehadinhisownmindentereduponthethirdstageofhispolicy。HehadeventhendiscussedwithhisCabinetanannouncementfavoringgeneralemancipation。Thetimedidnotseemtothemripe。ItwasdecidedtowaituntilaFederalvictoryshouldsavetheannouncementfromappearingtobeacryofdesperation。Antietam,whichtheNorthinterpretedasavictory,gaveLincolnhisopportunity。
TheEmancipationProclamationappliedonlytotheStatesinarmsagainsttheFederalGovernment。SuchStatesweregiventhreemonthsinwhichtoreturntotheUnion。Thereafter,iftheydidnotreturn,theirslaveswouldberegardedbythatGovernmentasfree。NodistinctionwasmadebetweenslavesownedbysupportersoftheConfederacyandthosewhoseownerswereinoppositiontoit。TheProclamationhadnobearingonthoseslaveStateswhichhadnotseceded。Needlesstoadd,nosecededStatereturned,andasecondProclamationmakingtheirslavestheoreticallyfreewasinduetimeissuedonthefirstofJanuary,1863。
ItmustnotbeforgottenthatthisradicalchangeofpolicywasmadeinSeptember,1862。Wehavealreadyheardoftheelectionswhichtookplacesoonafter——thoseelectionswhichmarkperhapsthelowestebbofLincoln\'spopularity,whenSeymourwaselectedGovernorofNewYork,andthepeacepartygainedoverthirtyseatsinCongress。Itisaquestionwhether,asapurelydomesticmeasure,theEmancipationProclamationwasnot,forthetime,aninjurytotheLincolnGovernment。AndyetitwastherealturningpointinthefortunesoftheNorth。Itwasthecentralfactinthemaintenanceoftheblockade。
InEnglandatthistimethecottonfaminewasatitsheight。
Nearlyamillionpeopleinthemanufacturingdistrictswerewhollydependentuponcharity。ThisresultoftheblockadehadbeenforeseenbytheConfederateGovernmentwhichwasconfidentthatthedistressofEngland\'sworkingpeoplewouldcompeltheEnglishministrytointerveneandbreaktheblockade。TheemployersinEnglandwhoselosswaswhollyfinancial,didastheConfederateshopedtheywoulddo。Theworkmen,however,tookadifferentcourse。Schooledbyanumberofabledebaters,theyfellintolinewiththatthirdgroupofpoliticalleaderswhosawinthevictoryoftheNorth,whateveritsmotives,theeventualextinctionofslavery。Tothesepeople,theEmancipationProclamationgaveadefiniteprogramme。Itwasnow,theleadersargued,nolongeraquestionofeventualeffect;theNorthhadproclaimedamotiveandthatmotivewastheextinctionofslavery。GreatnumbersofEnglishmenofallclasseswhohadhithertoheldbackfromsupportingCobdenandBrightnowrangedthemselvesontheirside。Addressesofpraiseandsympathy\"begantopourintotheLegationoftheUnitedStatesinasteadyandeverswellingstream。\"AnimmensepopulardemonstrationtookplaceatExeterHall。Cobden,writingtoSumner,describedthenewsituationinBritishpolitics,inaletteramountingtoanassurancethattheGovernmentneveragainwouldattempttoresistthepopularpressureinfavoroftheNorth。
Onthelastdayof1862ameetingofworkingmenatManchester,wherethecottonfaminewascausinguntoldmisery,adoptedoneofthoseNewYeargreetingstoLincoln。Lincoln\'sreplyexpressedwithhisusualdirectnesshisownviewofthesympatheticrelationthathadbeenestablishedbetweenthedemocraticclassesofthetwocountries:
\"IknowanddeeplydeplorethesufferingswhichtheworkingmenatManchester,andinallEurope,arecalledtoendureinthiscrisis。IthasbeenoftenandstudiouslyrepresentedthattheattempttooverthrowthisGovernment,whichwasbuiltuponthefoundationofhumanrights,andtosubstituteforitonewhichshouldrestexclusivelyonthebasisofhumanslavery,waslikelytoobtainthefavorofEurope。Throughtheactionofourdisloyalcitizens,theworkingmenofEuropehavebeensubjectedtoseveretrials,forthepurposeofforcingtheirsanctiontothatattempt。Underthecircumstances,IcannotbutregardyourdecisiveutterancesuponthequestionasaninstanceofsublimeChristianheroismwhichhasnotbeensurpassedinanyageorinanycountry。Itisindeedanenergeticandreinspiringassuranceoftheinherentpoweroftruth,andoftheultimatetriumphofjustice,humanity,andfreedom。Idonotdoubtthatthesentimentsyouhaveexpressedwillbesustainedbyyourgreatnation;and,ontheotherhand,Ihavenohesitationinassuringyouthattheywillexciteadmiration,esteem,andthemostreciprocalfeelingsoffriendshipamongtheAmericanpeople。I
hailthisinterchangeofsentiment,therefore,asanaugurythatwhateverelsemayhappen,whatevermisfortunemaybefallyourcountryormyown,thepeaceandfriendshipwhichnowexistsbetweenthetwonationswillbe,asitshallbemydesiretomakethem,perpetual。\"
CHAPTERX。THESECRETARYOFTHETREASURY
ThoughthedefeatoftheDemocratsatthepollsin1863andthenowdefinitelyfriendlyattitudeofEnglandhaddonemuchtosecurethestabilityoftheLincolnGovernment,thissuccesswasdueinparttoafigurewhichnowcomestothefrontanddeservesattentiveconsideration。IndeedtheworkofSalmonPortlandChase,SecretaryoftheTreasury,formsabridge,asonemightsay,betweenthefirstandsecondphasesofLincoln\'sadministration。
TheinterestingEnglishmanwhoisthelatestbiographerofLincolnsaysofChase:\"Unfortunately,thisimposingpersonwasasneak。\"ButisLordCharnwoodjustifiedinthatsurprisingcharacterization?HefindssupportinthetestimonyofSecretaryWelles,whocallsChase,\"artfuldodger,unstable,andunreliable。\"Andyetthereisanotherside,foritistheconventionalthinginAmericatocallhimourgreatestfinanceministersinceHamilton,andevenaconspicuousenemysaidofhim,atacrucialmoment,thathiscourseestablishedhischaracter\"asanhonestandfrankman。\"
Takingthesecontradictoryestimatesashintsofacontradictionintheman,weareforcedtotheconclusionthatChasewasaprofessionalinpoliticsandanamateurinfinance。Perhapshereinisthewholeexplanationofthetwocharacteristicsofhisfinancialpolicy——hisreluctancetolaytaxes,andhisfaithinloans。Histwoeyesdidnotseethingsalike。Onewasreallytryingtomakeouttheorthodoxpathoffinance;theotherwaspeeringalongthemoredeviousroadofpopularcaprice。
TheopeningofthewarcaughttheTreasury,asitcaughtallbranchesoftheGovernment,utterlyunprepared。BetweenAprilandJuly,1861,Chasehadtoborrowwhathecould。WhenCongressmetinJuly,hisrealcareerasdirectoroffinancialpolicybegan——or,ashisenemiesthink,failedtobegin。Atleast,hefailedtourgeuponCongresstheneedofnewtaxesandappearedsatisfiedwithhimselfaskingforanissueof$240,000,000inbondsbearingnotlessthansevenpercentinterest。Congressvotedtogivehim$250,000,000ofwhich$50,000,000mightbeinterest-bearingtreasurynotes;madeslightincreasesinduties;
andPreparedforexciseanddirecttaxationthefollowingyear。
LaterintheyearCongresslaidathreepercenttaxonallincomesinexcessof$800。
WhenCongressreassembledinDecember,1861,expenditureswereracingaheadofreceipts,andtherewasadeficitof$143,000,000。Itmustnotbeforgottenthatthismonthwasatimeofintenseexcitabilityandofnervousreaction。Fremonthadlatelybeenremoved,andtheattackonCameronhadbegun。AtthiscrucialmomentthesituationwasmadestillmorealarmingbytheactionoftheNewYorkbanks,followedbyallotherbanks,insuspendingspeciepayments。TheylaidtheresponsibilityuponChase。AsyndicateofbanksinNewYork,Boston,andPhiladelphiahadcometotheaidoftheGovernment,butwhentheytookupgovernmentbonds,Chasehadrequiredthemtopaythefullvaluecashdown,thoughtheyhadaskedpermissiontoholdthemoneyondepositandtopayitasneededonrequisitionbytheGovernment。Furthermore,inspiteoftheirprotest,Chaseissuedtreasurynotes,whichthebankshadtoreceivefromtheirdepositors,whoneverthelesscontinuedtodemandspecie。OnJanuary1,1862,thebanksowed$459,000,000andhadinspecieonly$87,000,000。Chasedefendedhiscoursebysayingthatthefinancialcrisiswasnotduetohispolicy——orlackofpolicy,asitwouldnowseem——buttoagenerallossoffaithintheoutcomeofthewar。
Therenowaroseamoralcrisisforthis\"imposingperson\"whowasSecretaryoftheTreasury——acrisiswithregardtowhichtherearestilldifferencesofopinion。Whilehefacedhisproblemsilently,theCommitteeonWaysandMeansintheHousetookthematterinhand:Itssolutionwasanoldonewhichallsoundtheoristsonfinanceuniteincondemning——theissueofirredeemablepapermoney。AndwhatdidtheSecretaryoftheTreasurydo?Previously,asGovernorofOhio,hehaddenouncedpapermoneyas,ineffect,afrauduponsociety。Longafter,whenthetideoffortunehadlandedhiminthehighplaceofSupremeJustice,hereturnedtothisviewandcondemnedasunconstitutionalthelawof1862establishingasystemofpapermoney。ButatthetimewhenthatlawwaspassedChase,thoughhewentthroughtheformofprotesting,soonacquiesced。BeforelonghewasaskingCongresstoallowafurtherissueofwhathehadpreviouslycalled\"fraudulent\"money。
TheanswertothequestionwhetherChaseshouldhavestucktohisprinciplesandresignedratherthanacquiesceinthepapermoneylegislationturnsonthatotherquestion——howwerethepoliticianandthefinancierrelatedinhismake-up?
BeforeCongressandtheSecretaryhadfinished,$450,000,000wereissued。Pricesnaturallyrose,andtherewasspeculationingold。Evenbeforethefirstissueofpapermoney,thetreasurynoteshadbeenslightlybelowpar。InJanuary,1863,ahundreddollarsinpaperwouldbring,inNewYork,only$69。00ingold;ayearlater,afterfalling,rising,andfallingagain,thevaluewas$64。00;inJulyandAugust,1864,itwasatitslowest,$39。00;whenthewarclosed,ithadrisento$67。00。Therewaspowerfulprotestagainstthelegislationresponsibleforsuchaconditionofaffairs。JustinMorrill,theauthoroftheMorrilltariff,said,\"IwouldassoonprovideChinesewoodengunsforthearmyaspapermoneyaloneforthearmy。Itwillbeabreachofpublicfaith。Itwillinjurecreditors;itwillincreaseprices;itwillincreasemanyfoldthecostofthewar。\"Recentstudentsagree,inthemain,thathisprophecieswerefulfilled;
andacommonestimateoftheprobableincreaseinthecostofthewarthroughtheuseofpapermoneyandtheconsequentinflationofpricesis$600,000,000。
Therewasmuchmorefinanciallegislationin1862;butChasecontinuedtostandasideandallowCongresstheleadinestablishinganexciselaw,anincreaseintheincometax,andahighertariff——thelastofwhichwasnecessitatedbytheexciselawwhichhasbeendescribedasabill\"thattaxedeverything。\"
ToenableAmericanmanufacturerstobeartheexcisedutiesleviedupontheirbusiness,protectionwasevokedtosecurethemthepossessionoftheirfieldbyexcludingforeigncompetition。Allthesetaxes,however,producedbutafractionoftheGovernment\'srevenue。Borrowing,thefavoritemethodoftheSecretary,wasacceptedbyCongressasthemainresource。Itiscomputedthatbymeansoftaxationtherewasraisedinthecourseofthewar$667,163,247。00,whileduringthesameperiodtheGovernmentborrowed$2,621,916,786。00。
WhateverelsehemaythinkofChase,noonedeniesthatin1862
hehadotherinterestsbesidesfinance。Lincoln\'sCabinetinthosedayswasfarfromanharmoniousbody。AllthroughitshistorytherewasaChasefactionandaSewardfaction。TheformerhadbehindthemtheRadicalRepublicans,whilethelatterrelieduponthesupportofthemoderates。ThisdivisionintheRepublicanpartyrunsdeepthroughthepoliticsofthetime。
ThereseemstobegoodreasontothinkthatChasewasnottakenbysurprisewhenhisradicalalliesinCongress,inDecember,1862,demandedofLincolntheremovalofSeward。Itwillberememberedthattheelectionsoftheautumnof1862hadgoneagainstLincoln。Atthismomentofdismay,thefriendsofChasestrucktheirblow。Sewardinstantlyofferedhisresignation。
ButLincolnskillfullytemporized。Thereupon,Chasealsoresigned。Judgingfromthescantyevidencewehaveofhisintention,wemayconcludethathethoughthehadLincolninacornerandthatheexpectedeithertobecomefirstministerortheavowedchiefofanirresistibleopposition。Butheseemstohavegonetoofastforhisfollowers。Lincolnhadmetthem,togetherwithhisCabinet,inaconferenceinDecember,1862,andfranklydiscussedthesituation,withtheresultthatsomeofthemwavered。WhenLincolninformedbothSewardandChasethathedeclinedtoaccepttheirresignations,bothreturned——Sewardwithalacrity,Chasewithreluctance。OneofthecluestoLincoln\'scabinetpolicywashisdeterminationtokeepboththesefactionscommittedtotheGovernment,withoutallowinghimselftobeunderthethumbofeither。
DuringthesixmonthsfollowingthecabinetcrisisChaseappearsathisbest。Astupendousdifficultylaybeforehimandheattackeditmanfully。TheGovernment\'sdeficitwas$276,900,000。
Oftheloansauthorizedin1862——the\"five-twenties\"astheywerecalled,bringingsixpercentandtorunfromfivetotwentyyearsattheGovernment\'spleasure——thesaleshadbroughtin,toDecember,1862,only$23,750,000,thoughfivehundredmillionhadbeenexpected。ThebanksindecliningtohandlethesebondslaidtheblameontheSecretary,whohadinsistedthatallpurchasersshouldtakethematpar。
Itisnotfeasible,inaworkofthischaracter,toenterintothecomplexitiesofthefinancialsituationof1863,ortodeterminejustwhatinfluencescausedarevolutioninthemarketforgovernmentbonds。Buttwofactorsmustbementioned。Chasewasinducedtochangehisattitudeandtoselltobankslargenumbersofbondsataratebelowpar,thusenablingthebankstodisposeofthemataprofit。HealsocalledtohisaidJayCooke,anexperiencedbanker,whowasallowedacommissionofone-halfpercentonallbondssoldupto$10,000,000andthree-eighthsofonepercentafterthat。Cookeorganizedacountrywideagencysystem,withtwenty-fivehundredsubagentsthroughwhomheoffereddirectlytothepeoplebondsinsmalldenominations。Byallmannerofdevices,patriotismandthepurchaseofbondsweremadetoappearthesamething,andbeforetheendoftheyear$400,000,000infive-twentybondshadbeensold。Thiscampaigntodisposeofthefive-twentieswastheturning-pointinwarfinance,andlaterborrowingsencounterednosuchdifficultiesasthoseof1862and1863。
BetterknowntodaythanthisprecariouslegislationisthefamousActof1863,whichwasamendedinthenextyearandwhichformsthebasisofourpresentsystemofnationalbanks。ToChasehimselfthecreditforthisseemstobedue。Evenin1861headvisedCongresstoestablishasystemofnationalbanks,andherepeatedtheadvicebeforeitwasfinallytaken。Thecentralfeatureofthissystemwhichheadvocatedisonewithwhichwearestillfamiliar:permissiontothebanksacceptinggovernmentsupervisiontodepositgovernmentbondsintheTreasuryandtoacquireinreturntherighttoissuebank-notestotheamountofninetypercentofthevalueofthebonds。
TherecanbenodoubtthatChasehimselfratedveryhighlyhisownservicestohiscountry。Noristhereanydoubtthat,aloneamongLincoln\'scloseassociates,hecontinueduntiltheendtobelievehimselfabettermanthanthePresident。HeandhisradicalfollowingmadenochangeintheirattitudetoLincoln,thoughChasepursuedacourseofconfidentialcriticismwhichhassinceinspiredthecharacterizationofhimasa\"sneak,\"whilehisfollowersweremoreoutspoken。Inthesummerof1863ChasewasseriouslytalkedofasthenextPresident,andbeforetheendoftheyearChaseclubswerebeingorganizedinallthelargecitiestopromotehiscandidacy。ChasehimselftooktheadroitpositionofnotbelievingthatanyPresidentshouldserveasecondterm。
Earlyin1864theChaseorganizationsentoutaconfidentialcircularsignedbySenatorPomeroyofKansassettingforththecaseagainstLincolnasacandidateandthecaseinfavorofChase。UnfortunatelyforChase,thiscircularfellintothehandsofanewspaperandwaspublished。ChaseatoncewrotetoLincolndenyinganyknowledgeofthecircularbutadmittinghiscandidacyandofferinghisresignation。NomoreremarkableletterwaswrittenbyLincolnthanhisreplytoChase,inwhichheshowedthathehadlongfullyunderstoodthesituation,andwhichheclosedwiththesewords:\"WhetheryoushallremainattheheadoftheTreasuryDepartmentisaquestionwhichIdonotallowmyselftoconsiderfromanystandpointotherthanmyjudgmentofthepublicservice,and,inthatview,Idonotperceiveoccasionforchange。\"
TheChaseboomrapidlydeclined。ThedeathblowwasgivenbyacaucusoftheUnionmembersofthelegislatureofhisownStatenominatingLincoln\"atthedemandofthepeopleandthesoldiersofOhio。\"ThedefeatembitteredChase。Forseveralmonths,however,hecontinuedintheCabinet,andduringthistimehehadthemortificationofseeingLincolnrenominatedintheNationalUnionConventionamidagreatdisplayofenthusiasm。
Morethanonceinthepast,Chasehadofferedhisresignation。
OnoneoccasionLincolnhadgonetohishouseandhadbeggedhimtoreconsiderhisdecision。Soonaftertherenomination,ChaseagainofferedhisresignationuponthepretextofadisagreementwiththePresidentoverappointmentstooffice。Thistime,however,Lincolnfelttheendhadcomeandacceptedtheresignation。Chase\'ssuccessorintheTreasurywasWilliamPittFessenden,SenatorfromMaine。Duringmostofthesummerof1864
Chasestoodaside,sullenandenvious,watchingtheprogressofLincolntowardasecondelection。SomuchdidhisbitternessaffecthisjudgmentthathewascapableofwritinginhisdiaryhisbeliefthatLincolnmeanttoreversehispolicyandconsenttopeacewithslaveryreestablished。
CHAPTERXI。NORTHERNLIFEDURINGTHEWAR
Therealeffectsofwaronthelifeofnationsisoneofthoseoldandcomplicateddebateswhichlieoutsidethescopeofavolumesuchasthis。YetintheparticularcaseoftheNorthernpeopleitisimperativetoanswertwoquestionsbothofwhichhaveprovokedinterminablediscussion:WasthemorallifeoftheNorthgoodorbadinthewaryears?Wasitscommerciallifesound?
Astothemoralquestion,contemporaryevidenceseemsatfirstsightcontradictory。TheveryableEnglishmanwhorepresentedthe\"Times\",WilliamH。Russell,givesthisuglypictureofanAmericancityin1863:
\"EveryfreshbulletinfromthebattlefieldofChickamauga,duringmythreeweeks\'stayinCincinnati,broughtalonglistofthedeadandwoundedoftheWesternarmy,manyofwhom,oftheofficers,belongedtothebestfamiliesoftheplace。Yetthesignsofmourningwerehardlyanywhereperceptible;thenoisygaietyofthetownwasnotabatedonejot。\"
Ontheotherhand,aprivatemanuscriptofaCincinnatifamilydescribesthe\"intensegloomhangingoverthecitylikeapall\"
duringtheperiodofthatdreadfulbattle。ThememoriesofoldpeopleatCincinnatiinafterdays——iftheyhadbelongedtothe\"loyal\"party——containedonlysadimpressionsofacitythatwasonegreathospitalwhere\"allourbestpeople\"workedpassionatelyasvolunteerassistantsofthegovernmentmedicalcorps。
AthirdfacttobeborneinmindinconnectionwiththisapparentcontradictioninevidenceisthesourceofthegreaterfortunesofCincinnati,alargeproportionofwhicharetobetraced,directlyorindirectlytogovernmentcontractsduringthewar。
InsomecasesthemercilessindifferenceoftheCincinnatispeculatorstothetroublesoftheircountryarealocalscandaltothisday,anditisstilltold,sometimeswithscorn,sometimeswithamusement,howperhapsthegreatestofthesefortuneswasmadebyforcingupthepriceofironatatimewhentheGovernmenthadtohaveiron,costwhatitmight。
Thuswenosoonertakeupthemoralproblemofthetimesthanwefindourselvesinvolvedinthecommercialquestion,forhere,asalways,moralsandbusinessareintertwined。WasthecommercialmanagementoftheNorthcreditabletotheGovernmentandanhonortothepeople?ThesurestwaytoanswersuchquestionsistotraceoutwithsomefullnessthecommercialandindustrialconditionsoftheNorthduringthefouryearsofwar。
Thegeneralreaderwholooksforthefirsttimeintothematterislikelytobestaggeredbywhatstatisticsseemtosay。
Apparentlytheycontradictwhatheisaccustomedtohearfrompopulareconomistsaboutthewasteofwar。Hehasbeentoldinthenewspapersthatbusinessisunderminedbythewithdrawalofgreatnumbersofmenfrom\"productive\"consumptionofthefruitsoflaborandtheirengagementassoldiersin\"unproductive\"
consumption。But,tohisastonishment,hefindsthatthestatisticsof1861-1865showmuchincreaseinNorthernbusiness——as,forexample,in1865,theproductionof142millionpoundsofwoolagainst60millionin1860。Thegovernmentreportsshowthat13milliontonsofcoalwereminedin1860and21millionin1864;in1860,theoutputofpigironwas821,000tons,and1,014,282tonsin1864;thepetroleumproductionrosefrom21
milliongallonsin1860to128millionin1862;theexportofcorn,measuredinmoney,showsfor1860abusinessof$2,399,808
comparedwith$10,592,704for1863;wheatexportingshowed,also,anenormousincrease,risingfrom14millionsin1860to46
millionsin1863。Thereare,tobesure,manystatisticswhichseemtocontradictthese。Someofthemwillbementionedpresently。Andyet,onthewhole,itseemssafetoconcludethattheNorth,atthecloseofthethirdyearofwarwasproducingmoreandwasreceivinglargerprofitsthanin1860。
Todealwiththissubjectinitsentiretywouldleadusintothelabyrinthsofcomplexeconomictheory,yettwoorthreesimplefactsappearsoplainthateventhemerehistorianmayventuretosetthemforth。Whenwelookintothestatisticswhichseemtoshowageneralincreaseofbusinessduringthewar,wefindthatinpointoffactthisincreasewashighlyspecialized。Allthoseindustriesthatdealtwiththephysicalnecessitiesoflifeandallthosethatdealtpeculiarlywitharmiesflourishedamazingly。
Andyetthereisanothersidetothestory,fortherewereotherindustriesthatweresetbackandsomethatalmost,ifnotentirely,disappeared。Agoodinstanceisthemanufactureofcottoncloth。Whenthewaropened,200,000handswereemployedinthismanufactureinNewEngland。WiththesealingupoftheSouthandthefailureofthecottonsupply,theirworktemporarilyceased。Whatbecameoftheworkmen?Briefly,oneofthreethingshappened:somewentintoothertrades,suchasmunitions,inwhichthewarhadcreatedanabnormaldemandforlabor;agreatnumberofthembecamesoldiers;andmanyofthemwentWestandbecamefarmersorminers。Furthermore,manywhosetradeswerenotinjuredbythewarlefttheirjobsandfledwestwardtoescapeconscription。Theirplaceswereleftopentobefilledbyoperativesfromtheinjuredtrades。
Inoneoranotherofthesewaysthelaborerwhowasthrownoutofworkwasgenerallyabletorecoveremployment。Butitisimportanttorememberthatthekeytothelaborsituationatthattimewasthevastareaofunoccupiedlandwhichcouldbehadfornothingornexttonothing。ThisfactisbroughthomebyacomparisonofthesituationoftheAmericanwiththatoftheEnglishworkmanduringthecottonfamine。AccordingtoitsownideasEnglandwasthenfullycultivated。Therewasnobodyoflandwaitingtobethrownopen,asanemergencydevice,toahostofnew-madeagriculturists。Whenthecotton-millsstoppedatManchester,theiroperativeshadpracticallynoopeningsbutinotherindustrialoccupations。Assuchopportunitieswerelacking,theybecameobjectsofcharityuntiltheycouldresumetheirwork。Asacountrywithagreatreserveofunoccupiedland,theUnitedStateswassingularlyfortunateatthiseconomiccrisis。
OneofthenoteworthyfeaturesofNorthernlifeduringthewaristhattherewasnoabnormalincreaseinpauperism。Agreatdealhasbeenwrittenupontheextensivecharitiesofthetime,butthetermiswronglyapplied,forwhatisreallyreferredtoisthevolunteeraidgiventotheGovernmentinsupportingthearmies。Thiswasdoneonavastscale,byallclassesofthepopulation——thatis,byallwhosupportedtheUnionparty,fortheseparationbetweenthetwopartieswasbitterandunforgiving。Butofcharityintheordinarysenseofthecareofthedestitutetherewasnosignificantincreasebecausetherewasnopeculiarneed。Hereagainthefactthatthefreelandcouldbeeasilyreachedisthefinalexplanation。Therewasnoneedfortheunemployedworkmantobecomeapauper。HecouldtakeadvantageoftheHomesteadAct*,whichwaspassedin1862,andacquireafarmof160acresfree;orhecouldsecureatalmostnominalcostfarm-landwhichhadbeengiventorailwaysasaninducementtobuild。UndertheHomesteadAct,theGovernmentgaveawaylandamountingto2,400,000acresbeforethecloseofthewar。TheIllinoisCentralalonesoldtoactualsettlers221,000
acresin1863and264,000in1864。Itwasduringthewar,too,thatthegreatundertakingofthetranscontinentalrailwaywasbegun,partlyformilitaryandpartlyforcommercialreasons。Inthisproject,bothasafieldoflaborandasastimulustoWesternsettlement,thereisalsotobefoundonemoredeviceforthereliefofthelaborsituationintheEast。
*ThisAct,whichmayberegardedastheculminationofthelongbattleoftheNortherndreamerstowin\"landforthelandless,\"
providedthateverysettlerwhowas,orintendedtobe,acitizenmightsecure180acresofgovernmentlandbylivingonitandcultivatingitforfiveyears。
ThereisnomoreimportantphenomenonofthetimethantheshiftingoflargemassesofpopulationfromtheEasttotheWest,whilethewarwasinprogress。Thisfactbeginstoindicatewhytherewasnoshortageintheagriculturaloutput。TheNorthsufferedacutelyfrominflationofpricesandfromaspeculativewildnessthataccompaniedtheinflation,butitdidnotsufferfromalackofthosethingsthatareproducedbythesoil——food,timber,metals,andcoal。Inadditiontothereasonjustmentioned——thesearchfornewoccupationbyEasternlaborwhichhadbeenthrownoutofemployment——threeothercauseshelpedtomaintaintheefficiencyofworkinthemines,intheforests,andonthefarms。Thesethreefactorswereimmigration,thelaborofwomen,andlabor-savingmachines。
Immigration,naturally,fellofftoacertaindegreebutitdidnotbecomealtogethernegligible。Itisprobablethat110,000
able-bodiedmencameintothecountrywhilewarwasinprogress——apooroffsettothemanyhundredthousandwhobecamesoldiers,butneverthelessacontributionthatcountedforsomething。
Vastlymoreimportant,intheworkoftheNorth,wastheparttakenbywomen。ApatheticdetailwithwhichinourownexperiencetheworldhasagainbecomefamiliarwastheabsenceofyoungmenthroughoutmostoftheNorth,andthepresenceofwomennewtotheworkinmanyoccupations,especiallyfarming。A
singlequotationfromahomemissionaryinIowatellsthewholestory:
\"IwillmentionthatImetmorewomendrivingteamsontheroadandsawmoreatworkinthefieldsthanmen。Theyseemtohavesaidtotheirhusbandsinthelanguageofafavoritesong,\'Justtakeyourgunandgo;
ForRuthcandrivetheoxen,John,AndIcanusethehoe!\'
\"IwentfirsttoClarinda,andthetownseemeddeserted。Uponinquiryforformerfriends,thefrequentanswerwas,\"Inthearmy。\"FromHawleyvillealmostallthethoroughlyloyalmaleinhabitantshadgone;andinonetownshipbeyond,whereI
formerlypreached,therearebutsevenmenleft,andatQuincy,thecountyseatofAdamsCounty,butfive。\"
Evenmoreimportantthanthechangeinthepersonneloflaborwerethenewmachinesoftheday。DuringthefifteenyearsprevioustothewarAmericaningenuityhadreachedahighpoint。
Suchinventionsasthesewingmachineandthehorse-reaperdateintheirpracticalformsfromthatperiod,andbothofthesehelpedtheNorthtofightthewar。Theirfurtherimprovement,andtheextensionoftheprinciplesinvolvedtomanynewformsofmachinery,sprangfromthepressingneedtomakeupforthelossofmenwhoweredrainedbythearmyfromthefarmsandtheworkshops。Itwasthehorse-reaper,thehorse-rake,thehorse-thresherthatenabledwomenandboystoworkthefarmswhilehusbands,fathers,andelderbrotherswereatthefront。
AllthesecausesmaintainedNorthernfarmingatahighpitchofproductivity。Thisefficiencyisimpliedinsomeofthefiguresalreadyquoted,butmanyotherscouldbecited。Forexample,in1859,thetotalproductionofwheatforthewholecountrywas173
millionbushels;in1862,theNorthaloneproduced177millions;
evenin1864,withoveramillionmenunderarms,itstillproduced160millionbushels。
ItmustberememberedthatthegreatNorthernarmyproducednothingwhileitconsumedtheproductsofagricultureandmanufacture——food,clothing,arms,ammunition,cannon,wagons,horses,medicalstores——ataratethatmighthaveledapoeticalpersontoimaginethearmyasadevouringdragon。Who,inthelastanalysis,providedallthesesupplies?Whopaidthesoldiers?Whosupplementedtheirmeagerpayandsupportedtheirfamilies?Thepeople,ofcourse;andtheydidsobothdirectlyandindirectly。IntaxesandloanstheypaidtotheGovernmentaboutthreethousandmillionsofdollars。Theirindirectassistancewasperhapsasgreat,thoughitisimpossibletodaytoestimatewithanyapproachtoaccuracytheamounteitherinmoneyorservice。AmongobviousitemsarethecollectionsmadebytheSanitaryCommissionforthebenefitofthehospitalservice,amountingtotwenty-fivemilliondollars,andaboutsixmillionsraisedbytheChristianCommission。InahundredotherwaysbothindividualsandlocalitiesstrainedtheirresourcestosupplementthoseoftheGovernment。Immensesubscriptionlistswerecirculatedtoraisefundsforthefamiliesofsoldiers。ThecityofPhiladelphiaalonespentinthiswayinasingleyear$600,000。Thereisalsoevidenceofavastamountofunrecordedreliefofneedyfamiliesbytheneighbors,andinthefarmingdistricts,suchassistance,particularlyintheformoffuelduringwinter,wasverygenerallygiven。
Whatmadepossiblethisenormoustotalofcontributionswas,inaword,thegeneralwillingnessofthosesupportingthewartoforegoluxuries。Theyceasedbuyingagreatmultitudeofunnecessarythings。Butwhatbecameofthelaborthathadpreviouslysuppliedthedemandforluxuries?ApartofitwentthewayofallotherNorthernlabor——intonewtrades,intothearmy,ortotheWest——andapartcontinuedtomanufactureluxuries:fortheirmarket,thoughcurtailed,wasnotdestroyed。
Therewere,indeed,twopopulationsintheNorth,andtheywereseparatedbyanemotionalchasm。HadalltheNorthbeenaunitinfeeling,theproductionofarticlesofluxurymighthaveceased。BecauseofthisemotionaldivisionoftheNorth,however,thisbusinesssurvived;forthesacrificeofluxuriousexpenditurewasmadebyonlyapartofthepopulation,eventhoughitwasthemajority。
Furthermore,thewholematterwasadjustedvoluntarilywithoutsystematicgovernmentdirection,sincetherewasnothinginthefinancialpolicyoftheGovernmenttocorrespondtoconscription。
Consequently,bothinthewayofloansandinthewayofcontributions,aswellasinthematterofunpaidservice,theentireburdenfelluponthewarpartyalone。Intheabsenceofanythinglikeeconomicconscription,ifsuchaphrasemaybeused,thoseNorthernerswhodidnotwishtolendmoney,ortomakefinancialsacrifice,ortogiveunpaidservice,werefreetopursuetheirownbent。Theelectionof1864showedthattheyformedamarketwhichamountedtosomethingbetweensixandninemillions。Thereisnoreasontosupposethatthesemillionsin1864spentlessonluxuriesthantheydidin1860。Twoorthreeitemsareenough。In1860,theimportationofsilkamountedto32milliondollars;in1862,inspiteofinflatedprices,ithadshrunkto7millions;theconsumptionofmaltliquorsshrankfrom101milliongallonsin1860to62milliongallonsin1863;ofcoffee,hardlytobeclassedasaluxury,therewereconsumedin1861,184millionpoundsandin1863,80millions。
Thecluetothestoryofcapitalistobefoundinthisfact,toooftenforgotten,thattherewasaneconomic-politicaldivisioncuttingdeepthrougheverystratumoftheNorthernpeople。Theireconomiclifeaswellastheirpoliticallifewascontrolledontheonehandbyadevotiontothecauseofthewar,andontheotherhandbyahatredofthatcauseorbycynicalindifference。
AndwecannotinsisttoopositivelythattheGovernmentfailedverylargelytotakethisfactintoaccount。TheAmericanspiritofinvention,soconspicuousatthattimeinmechanics,didnotapplyitselftothescienceofgovernment。Lincolnconfessedlywasnotafinancier;hisinstinctwasathomeonlyinproblemsthatcouldbestatedintermsofmen。Witnesshisacceptanceofconscriptionandhisfirmnessincarryingitthrough,asaresultofwhichhesavedthepatrioticpartyfrombearingthewholeburdenofmilitaryservice。Buttherewasnoparallelconservationofpowerinthefieldofindustry。Thefinancialpolicy,leftinthehandsofChase,maytrulybedescribedasbarrenofideas。Incidentally,itmaybementionedthatthe\"loyal\"NorthwasleftatthemercyofitsdomesticenemiesandapreytoparasitesbyChase\'spolicyofloansinsteadoftaxesandofvoluntarysupportinsteadofenforcedsupport。
Theconsequenceofthisfinancialpolicywasanimmenseopportunityforthe\"disloyally\"andtheparasitestomakehugewarprofitsoutofthe\"loyals\"andtheGovernment。Ofcourse,itmustnotbesupposedthateveryonewhoseizedthechancetofeatherhisnestwassocarelessorsoimpoliticastolethimselfbeclassedasa\"disloyal。\"Anincidentoftheautumnof1861showsthetemperofthoseprofessed\"loyals\"whowerereallyparasites。ThebackgroundoftheincidentissuppliedbyareportoftheQuartermaster-General:
\"Governorsdailycomplainthatrecruitingwillstopunlessclothingissentinabundanceandimmediatelytothevariousrecruitingcampsandregiments。Witheveryexertion,thisdepartmenthasnotbeenabletoobtainclothingtosupplythesedemands,andtheyhavebeensourgentthattroopsbeforetheenemyhavebeencompelledtodopicketdutyinthelatecoldnightswithoutovercoats,orevencoats,wearingonlythinsummerflannelblouses……Could150,000suitsofclothing,overcoats,coats,andpantaloonsbeplacedtoday,indepot,itwouldscarcesupplythecallsnowbeforeus。Theywouldcertainlyleavenosurplus。\"
TheGovernmentattemptedtomeetthisdifficultyintheshortestpossibletimebypurchasingclothingabroad。Butsuchdisregardofhomeindustry,the\"patriotism\"oftheNewEnglandmanufacturerscouldnotendure。Alongwiththereportjustquoted,theQuartermaster-GeneralforwardedtotheSecretaryofWaralongargumentativeprotestfromacommitteeoftheBostonBoardofTradeagainstthepurchaseofarmyclothinginEurope。
AnyAmericanofthepresentdaycanguesshowtheprotestwaswordedandwhatargumentswereused。Strippedofitsinsincerity,itsignifiedthis:thecottonmillswereinoperativeforlackofmaterial;theirownerssawnochancetosavetheirdividendsexceptbyrequipmentaswoolenmills;theexistingwoolenmillsalsosawagreatchancetoforcewooluponthemarketasasubstituteforcotton。InOhio,California,Pennsylvania,andIllinois,thegrowersofwoolsawtheopportunitywithequalclearness。But,oneandall,thesevariousgroupsofparasitessawthattheirgamehingedononecondition:themunitionsmarketmustbekeptopenuntiltheywerereadytomonopolizegovernmentcontracts。Ifsoldierscontractedpneumoniadoingpicketdutyoncoldnights,intheirsummerblouses,thatwasbutanunfortunateincidentofwar。
VerydifferentinspiritfromtheprotestoftheBostonmanufacturersisadispatchfromtheAmericanministeratBrusselswhichshowswhatAmericanpublicservants,incontrastwithAmericanmanufacturers,wereabout。AbroadtheagentsofNorthandSouthwerefightingacommercialduelinwhicheachstrovetomonopolizethemunitionsmarket。TheUnitedStatesNavy,seeingthingsfromanangleentirelydifferentfromthatoftheBostonBoardofTrade,ablysecondedtheministersbyblockadingtheSouthernportsandbythuspreventingthemovementofspecieandcottontoEurope。Asaconsequence,fourmonthnoteswhichhadbeengivenbySouthernagentswiththeirordersfelldue,hadtoberenewed,andbegantobeheldindisfavor。
AgentsoftheNorth,gettingwindofthesehitchesinnegotiations,eagerlysoughttotakeovertheunpaidConfederateorders。AllthesedetailsofthesituationhelptoexplainthejubilanttoneofthisdispatchfromBrusselslateinNovember,1861:
\"Ihavenowinmyhandscompletecontroloftheprincipalrebelcontractsonthecontinent,viz。:206,000yardsofclothreadyfordelivery,alreadycommencingtomoveforwardtoHavre;graybutcanbedyedblueintwentydays;100,000yardsdeliverablefrom15thofDecemberto26thofJanuary,lightbluearmycloth,sameasours;100,000blankets;40,000gunstobeshippedintendays;20,000saberbayonetstobedeliveredinsixweeks……Thewinterclothingfor100,000mentakenoutoftheirhands,whentheycannotreplaceit,wouldalmostcompensateforBullRun。
ThereisnoconsiderableamountofclothtobehadinEurope;thestocksareveryshort。\"
TheSecretaryofWarwasasdevoidofideasastheSecretaryoftheTreasurywasandevenlessequippedwithresistingpower。
ThoughhecouldnotundotheworkalreadydonebytheagentsoftheGovernmentabroad,hegavewayasrapidlyaspossibletothealliedparasiteswhoseheadquarters,atthemoment,wereinBoston。Thestorygrowsuglierasweproceed。Twopowerfulcommercialcombinationstookchargeofthepolicyofthewooleninterests——theNationalWoolgrowers\'AssociationandtheNationalAssociationofWoolManufacturers,whichweresoonincontrolofthisimmenseindustry。WoolenmillssprangupsofastthatareportoftheNewYorkChamberofCommercepronouncedtheirincrease\"scarcelycredible。\"SogreatwasthenewmarketcreatedbytheGovernmentdemand,andsoruthlessweretheparasitesinforcingupprices,thatdividendsonmillstockroseto10,15,25,andeven40percent。AndallthewhilethewoolgrowersandthewoolmanufacturerswereclamoringtoCongressforprotectionofthehomeindustry,exclusionofthewickedforeigncompetition,andallinthenameoftheirdevoted\"patriotism\"——patriotismwithadividendof40percent!
Ofcourse,itisnotmeantthateverywoolgrowerandeverywoolenmanufacturerwaseithera\"disloyal\"oraparasite。Bynomeans。Numbersofthemweretobefoundinthatgreathostof\"loyals\"whoputtheirdividendsintogovernmentbondsandgavetheirservicesunpaidasauxiliariesoftheCommissaryDepartmentortheHospitalServiceoftheArmy。Whatismeantisthattheabnormalconditionsofindustry,uncorrectedbytheGovernment,affordedaglaringopportunityforunscrupulousmenofbusinesswho,whatevertheirprofessions,caredahundredtimesmoreforthemselvesthanfortheircountry。Tothesewasduethepitilesshamperingofthearmyintheinterestofthewool-trade。Forexample,manyuniformspaidforatoutrageousprices,turnedouttobemadeofamiserablecheapfabric,called\"shoddy,\"whichresistedweatherscarcelybetterthanpaper。Thisfraudgavetheword\"shoddy\"itspresentsignificanceinourAmericanspeechandproducedthephrase——appliedtomanufacturersnewlybecomerich——\"shoddyaristocracy。\"AnevenmoreshamefulresultoftheselfishnessofthemanufacturersandoftheweaknessoftheGovernmentwastheuseofclothforuniformsnotoftheregulationcolors,withtheresultthatsoldierssometimesfiredupontheircomradesbymistake。
Theprosperityofthecapitalistswhofinancedthewoolenbusinessdidnotextendtothelaboremployedinit。OneoftheugliestdetailsofthetimewastheresoluteattemptoftheparasitestoseizethewholeamountoftheabnormalprofitstheywrungfromtheGovernmentandfromthepeople。Foritmustnotbeforgottenthatthewholenationhadtopaytheirprices。Itisestimatedthatpricesinthemainadvancedabout100percentwhilewageswerenotadvancedmorethansixtypercent。Itisnotstrangethattheseyearsofwarformaperiodofbitterantagonismbetweenlaborandcapital。
Whatwentoninthewoolenbusinessistobefoundmoreorlessineverybusiness。Immensefortunessprangupovernight。Theyhadbuttworoots:governmentcontractsandexcessiveprofitsduetowarprices。ThegiganticfortuneswhichcharacterizedtheNorthattheendofthewararethusaccountedfor。Theso-calledprosperityofthetimewasaclassprosperityandwasabsorbedbyparasiteswhofatteneduponthenecessitiesoftheGovernmentandthesacrificesofthepeople。
CHAPTERXII。THEMEXICANEPISODE