PART XIX: Revenue, Reconciliation, and Reunification
  • PART XIX: Revenue, Reconciliation, and Reunification

    From “We Must Endeavor: The Story of Reconciliation” by Sir Andrew Dickerson
    Published 1997


    “Upon his inauguration, President Sherman inherited a divided party. A large minority of the Freedomite congressional delegation was opposed to him, though their numbers had declined significantly in the aftermath of the 1864 congressional elections. Of course, the Freedom Party held a comfortable majority in the House of Representatives, so Sherman and Colfax could afford a few defections in the House, but in the Senate, despite the Freedom Party holding the majority, there were twelve Senators who had supported the Reconciliationist ticket of Lincoln and Foster, enough that, if even half of these Senators opposed Sherman’s legislation, it would not pass.

    Thus, Sherman’s agenda was limited to what the radicals and Lincolnites held in common. This removed from consideration any continuation of Fremont’s plantation confiscations, as well as any sort of treason trials for Confederate leaders (though most Radicals had cooled on the idea by then). Instead, Sherman sought to unite his own party with monetary policy and crackdowns on a growing insurgency in southern states.

    Sherman wanted to focus on helping the economy recover from the inflationary spending of the Civil War. It had been an area he had involved himself with greatly in his capacity as Speaker of the House during the war, and he wished to build a strong economy with a gold-backed dollar. During the war, the Fremont administration had struggled to afford army wages, supplies, weapons, and an expanded navy during the war, and so Sherman had helped draft legislation that weakened the gold standard and would allow the U.S. government to issue Demand Notes, both being paper notes redeemable for silver or gold (specie). This created short-term revenue but failed to fix the long-term issue because the government lacked the specie reserves to redeem all of the Demand Notes.

    The goal was to expand the government’s monetary reserves, but this, combined with the passage of large bond packages, allowed the government to fund the war (spending a record of $2 million per day), at the cost of a worsening economy. In December of 1857, many banks refused to redeem Demand Notes for specie, causing gold to begin to disappear from circulation. Sherman and his colleagues urged that “a radical change must be made in our existing laws as they regard currency to prevent the destruction of the Union”. Treasury Secretary Fessenden had to be persuaded that changes to the existing monetary policy had to be made, but after a terse meeting with Sherman and Fremont, submitted a proposal that new government notes be issued, to be redeemable in government bonds rather than hard specie. This resulted in the Legal Tender Act of 1857 [1], which historians concur greatly aided in America’s swift victory over the Confederates.

    Further financial legislation followed the Legal Tender Act of 1857, with 1859 seeing the passage of the National Banking Act. The act, first proposed the year prior by Senator Salmon P. Chase, a fellow champion of fiscal reform, established a system of nationally chartered, privately operated banks to issue notes in conjunction with the Treasury Department. The National Banking Act helped provide more, and more efficiently derived, revenue to fund the war effort, but nevertheless the post-war United States had amassed very large amounts of debt, which only increased after the Contraction Act of 1863, which gradually withdrew Government Notes from circulation by converting them from notes redeemable in bonds to interest-bearing notes redeemable in coin. Sherman had objected to this measure, as it would deplete the government’s hard currency reserves, but it was passed over his objections when President Fremont and Secretary Fessenden announced their support for it and persuaded Sherman to bring it to a vote. However, one major piece of legislation backed by then-Speaker Sherman, the Price Act, which sought to reduce the price of goods as a precursor to restoring the gold standard, was passed by Congress and signed into law by President Lincoln in 1863, further laying the groundwork for the monetary policy undertaken by Sherman during his tenure as President.

    Thus, Sherman entered office with a ballooning national debt and a contracting specie reserve. The first step he took towards reducing the deficit was proposing, through his allies in Congress, the Government Notes Act, which would bar Congress from retiring further government notes. The Government Notes Act, popularly known as the Greenback Law, sought to placate both the general public, who had grown accustomed to them, as well as businessmen, who believed that greenbacks were stimulating the economy and that to withdraw them would cause prices to drop and hurt their businesses. this is not to say that Sherman endorsed a fiat currency, as he very much wanted to restore the gold standard and use that as the foundation for a strong post-war economy.

    One of the major pieces of legislation passed during Sherman’s first year as President was the Public Credit Act of 1865. The Public Credit Act was intended to return the U.S. economy to a gold-backed system and phase out the inflationary greenbacks. Sherman, being very much interested in financial matters, involved himself greatly in the drafting of the bill, holding extensive meetings with the members of the Financial Committees, Speaker Colfax, Treasury Secretary Chase, and many other important politicians and officials. The Public Credit Act was simple in its content – it simply required that holders of government bonds be paid in gold. The Act was rapidly drafted and passed and was signed just two weeks after its introduction into the House in a small ceremony on March 21st, 1865. After the passage of the PCA, Sherman decided to wait for economic conditions to stabilize before taking further steps to reintroduce the gold standard, with the next major piece of legislation being the Government Notes Redemption Act in 1872 [2], during Sherman’s last full year in office.”

    ------------------------------------
    President: John Sherman
    ------------------------------------

    Vice President: Henry Wilson

    Secretary of State: William Seward

    Secretary of the Treasury: Salmon P. Chase

    Secretary of War: John F. Reynolds

    Attorney General: Benjamin Wade

    Postmaster-General: John A. Creswell

    Secretary of the Navy: David Farragut

    Secretary of the Interior: Jacob D. Cox
    ------------------------------------

    From “An Encyclopedia of World History” by Fletcher & Sons EduPrint Co.
    Published 2008


    The Brother’s War (similar: Alpine War): A conflict in central Europe that lasted from June 14th, 1866 to July 29th, 1866. After the Second Schleswig War in 1864 in which Prussia and Austria had formed an alliance to restore Schleswig-Holstein to semi-independent status (and ultimately placed the territories under their joint control), Prussian Chancellor Otto von Bismarck continued to plot Prussia’s rise to German, and later, European, primacy. The most obvious roadblock in Prussia’s rise to dominance was Austria, the other major power in the German Confederation and therefore the natural opponent to Prussian unification schemes.

    In the aftermath of Napoleon III’s assassination, Sardinia was driven from French arms and signed an alliance with the Prussians, with the implicit intention of waging war together against Austria. The alliance remained in place for half a decade without any cause for war, but besides the Sardinian desire for Risorgimento and the Prussian desire for
    Vereinigung, there were other pressures on King Vittorio Emmanuel II and King Wilhelm I. In Sardinia, the King was faced with demands for reform, while in Prussia, Wilhelm was locked in a struggle with a liberal-dominated parliament. And in Austria, Emperor Franz Joseph was struggling to keep his large and ethnically-diverse empire together. One of the great unifiers of a nation is war, and so each of these three sovereigns felt that some sort of victory in war could ease the strain they were under and get public opinion on their side.
    The casus belli of the war was a dispute between Prussia and Austria over their joint administration of Schleswig-Holstein. Austria had permitted the estates of the duchies to hold a joint assembly, which Bismarck claimed violated the principle of joint Austro-Prussian rule over the territories. On February 7th, 1866, Austria refused Prussian demands and, in early March, reinforced the troops along its border with Prussia. On March 28th, Prussia mobilized five divisions, pushing the two countries (and, by extension, Sardinia) towards war. Three days prior, Bismarck had telegrammed Sardinian Prime Minister Camillo Benso, the Count of Cabour, [3], signaling his intention to wage war on Austria, and calling upon Sardinia-Piedmont to aid in the effort. Cavour ordered the total mobilization of the Sardinian Army immediately after he recieved word of Prussia’s partial mobilization [4].
    Worried by the escalating tensions, Emperor Franz Joseph ordered a mobilization of all troops along the border with Sardinia, which included placing Lombardy and Venetia under martial law for the “duration of the war". Austria then brought the Schleswig-Holstein dispute before the German Diet when it convened on June 1st, while simultaneously convening the Diet of Holstein ten days later. In response, Prussia renounced the Badgastein Convention of a year prior, which regulated how the joint administration of Schleswig-Holstein was to work, was null and void, and invaded Schleswig-Holstein. On June 14th, the German Diet voted to mobilize against Prussia’s invasion, and Bismarck declared the end of the German Confederation. Hanover, Saxony, and Hesse were all invaded by Prussian armies soon after, while Cavour issued a declaration of war, bringing Sardinia-Piedmont into the war.
    Bismarck was emboldened to make war on Austria after meeting with the ruling French government, which, while pro-Austria, indicated they would be willing to remain neutral in exchange for either Luxembourg or the Bavarian Palatinate. Wanting to avoid French intervention (though weakened by the abortive Mexican intervention, France remained a strong continental force), Bismarck agreed to hand over the Palatinate, which he expected would be acquired, in exchange for French neutrality.
    With new technology, France neutral and Sardinia joining in, Prussia experienced quick success, with Helmut von Moltke advancing into Bohemia. At the key Battle of Sadowa [5], the Prussian army faced a combined Austro-Saxon force, commanded by Ludwig Benedek. The Prussians, despite being greatly outnumbered, and despite Crown Prince Frederick’s death when a bridge he was standing on was struck by Austrian artillery [6], scored a decisive win, destroying 36 out of 49 Austrian divisions in the heated fighting at the center of the battle lines, and forcing a general Austrian retreat at 16:00 [7]. The Sardinians had a more difficult time, but they still captured Milan thanks to the leadership of Giuseppe Garibaldi before pushing into Veneto.
    It was at this point, with Austria pushed back on both fronts and other countries unwilling to get involved, that King Wilhelm I offered to make peace with Austria (at Bismarck’s urging, of course – Wilhelm had wanted to press onwards to Vienna). Franz Joseph agreed, and negotiations were held, mediated by Marshal MacMahon of France, in Prague. The German Confederation was dissolved totally, with Prussia forming a North German Union with itself, Saxony, and several other minor states. Prussia took no territory from Austria, though it annexed Hanover, Hesse, Frankfurt, all of Schlewig-Holstein, and traded Wurzburg (which had been occupied during the war) for the Bavarian Palatinate, which was then ceded to France in compliance with Bismarck’s agreement. Sardinia gained much more – Tuscany, Parma, and Modena were established as client states, and later annexed, while Lombardy and most of Veneto were annexed directly.
    In just over one month, this “splendid little war", as Bismarck called it, had profoundly altered the political and diplomatic landscape of Europe. Prussia was now the premier power in Germany, North Italy (as Sardinia was renamed in the aftermath of the war) was on the rise, and one of Europe’s oldest powers was severely weakened. The Brother’s War, along with the later San Stefano Crisis, would together shape the alliances that participated in the Continental War, and indeed, these two events have shaped much of the nineteenth and twentieth centuries."

    From “Black History”, by John C. Lodge III and Dr. Lawrence F. Meeks
    Published 1975


    “The core of Mississippi, even during the antebellum period, was the Yazoo Delta. Though the state’s population has begun to shift east towards Grant with the rise of computing businesses in recent years, the cultural heart of the state is rooted in the cotton plantations of the Yazoo region. It was there that wealthy planters like Jefferson Davis built stately homes on vast tracts of riverfront land, where they grew cotton in the rich alluvial floodplains, on the backs of many thousands of black slaves. So lucrative was the cotton planting economy that the number of slaves within Mississippi quickly grew to exceed the free population of the state.

    During the Civil War, Mississippi was partially occupied by the Union army, with the Army of Louisiana besieging and capturing Vicksburg, and burning Grant (then named Jackson). Mississippi escaped the devastation brought to Virginia, Tennessee, and Georgia, despite the damage done to Vicksburg and Jackson. With the collapse of the Confederacy, Mississippi came under military rule during the Reconciliation period, as a part of the Third Military District. As Mississippi was included under the ‘Land Appropriations Act’, the land holdings of all slaveholders within the state were confiscated and turned over to the freedmen populations in what has come to be known as the “Negro’s Homestead Act”.

    These seized plantations were distributed by the Freedmen’s Aid Bureau to the slaves, who were given forty acres of land from the seized plantations as well as farming equipment and a mule. In order to support these new smallholders and the new Mississippi economy, banks, schools, and roads were needed. Governor James L. Alcorn, who had been installed by President Lincoln, was able to provide some funds for road and school construction, but the state treasury was strapped for cash after the Civil War, and so it fell to private citizens to try and build a more modern Mississippi. The Free Bank of the South was thus chartered in Vicksburg, with such investors as Congressman Newton Knight, General Richard Taylor, and Confederate General James Longstreet. The Free Bank was intended as not only a bank to aid freedmen in establishing businesses and improving the state, but as a bank to aid poor white smallholders and southern entrepreneurs. With loans from the bank, swamps were drained to provide more farmland, roads and bridges (including the opulent Fremont Bridge over the Yazoo River) were constructed, and businesses, including new port facilities and warehouses in Vicksburg, opened.

    With a combination of state-driven investment, Freedmen’s Bureau money, and the Free Bank of the South, Mississippi soon began to recover from the disruption and damage of the Civil War, with Vicksburg and Yazoo City exploding in population. Of course, cotton cultivation was not the most efficient industry for smallholders, and so agriculture in Mississippi took two routes – some smallholders pooled their resources to create cotton-growing cooperative farms, while others shifted to growing other, less intensive crops such as the various grains.

    A new Mississippi was born amid the remains of the old.”

    From “Reconciliation and Revenge: A History of the Postbellum US", by Philip DeLancey
    Published 1985


    “One thing that united the two factions of the Freedom party was the belief that civil rights legislation and civil rights amendments were necessary to preserve the rights of black Americans in the south. The thirteenth amendment, which abolished slavery and implemented some level of legal equality for black Americans, had been passed by Congress and ratified by the requisite number of states during the Fremont administration, but most Freedomites understood the need for further action. For one thing, as Zachariah Chandler pointed out in an address before the Senate, the thirteenth amendment, while it established the legal equality of freedmen, failed to clarify whether or not they were actually citizens. Thus, Chandler introduced a new amendment in June of 1866 with the goal of establishing freedmen as ‘free citizens of the Union’. This amendment found more support than the Thirteenth amendment and was easily passed by the Senate and the House. President Sherman even made a brief railroad tour of those states east of the Mississippi to lobby for the amendment’s ratification (though with much stricter security, in remembrance of John Fremont’s assassination while on a similar tour). Interestingly, the effects of the Fourteenth Amendment reached beyond just Reconciliation, as its citizenship clause, which declared all persons born on American soil, born to citizens, or fully naturalized, full American citizens, applied not just to freedmen and their children, but also to the children of immigrants born on American territory.

    While the Fourteenth Amendment, which was much less controversial than the Thirteenth (and indeed, the Thirteenth Amendment may have softened public opinion towards the Fourteenth), was swiftly ratified within the year by the requisite number of states, Congress turned to other areas of Reconciliation.

    By 1865, Reconciliation had been going on for five years in most parts of the south, six in some (like Tennessee, Kentucky, and Virginia), and the progressive and radical policies undertaken by both the Federal government and the state ‘Reconstructed Governments’ were already breeding violence and terrorism. Already angered at their loss in the Civil War, the Civil Rights Act, Land Appropriations Act, and Reconciliation Amendments all pushed disgruntled and, in many instances, impoverished Southern whites into radical supremacist organizations. Many were not just angry at the new rights given to Blacks but were also enraged at their effective disenfranchisement by the Wade-Davis Act’s ‘Ironclad Oath’ provision. One member of the feared Kuklus Clan (KC) testified while on trial for inciting violence that “I joined them [the Kuklus Clan] because I couldn’t vote but the N-----s could, I lost my farm while the gov’ment gave ‘em free land, I lost my leg, and we lost the war.” This unnamed man’s resentment was shared by many southerners, and eagerly stoked by those planters who had retained their wealth and land.

    The Kuklus Clan was established in Pulaski, Tennessee, by six Confederate veterans (including Generals Nathan B. Forrest and George Gordan, the latter of which was selected the first Grand Wizard of the organization). It’s manifesto, the Prescript, expressly endorsed white supremacy, calling for the establishment of a “White Man’s Government”, while also demanding the “restoration of the franchise to the Southern people”. The KC swelled in size, attracting disgruntled Confederate veterans who began roaming the countryside, attacking Blacks, Northern “carpetbaggers” and Southern cooperationists, termed “scalawags”. The KC soon found immense popularity in South Carolina and Mississippi, states ruled by ‘Reconstructionist Parties’, which were coalitions of southern Republicans, Freedmen (such as Hiram R. Revels in Mississippi or Robert Smalls in South Carolina), and ‘carpetbaggers’ that enforced Reconciliation policies. Of course, at the time, most southern states were run by Reconstructionists. What made Mississippi and South Carolina in particular hotbeds of Kuklus Clan activity was the fact that, under the terms of the Land Appropriations Act, all plantations there had been seized and distributed among the freedmen.

    The Clan quickly became a terrorizing force in the South, with members riding around, using their organization to both settle disputes and perpetrate racial violence. On June 28th, 1866, in Liberty, a small town on the Yazoo River, members of the Kuklus Clan burned homes, looted crops, killed work animals, and murdered freedmen. Over the course of a week of raids, 21 homes were torched, 34 mules and horses were killed, thousands of dollars of crops were destroyed or stolen, and eleven people were killed. The violence shocked many northerners, and President Sherman was forced to suspend habeas corpus in the area, and 10,000 additional troops were deployed to Mississippi to maintain the peace. The Freedmen’s Aid Bureau paid out several thousand dollars to rebuild Liberty after the violence, but no-one was prosecuted, as the perpetrators had effectively vanished. Similar events played out across Mississippi, South Carolina, and Florida, and against freedmen in other southern states.

    While Sherman and Congress did not take decisive action until 1867, it was clear to many that the south would be in for a tumultuous time during Reconciliation…”

    [1] An OTL act passed during the Civil War, here passed four years earlier. This is one of those things that I think would have happened in any civil war scenario where the Union has competent leadership. (Also, welcome back to footnotes!)
    [2] This was an OTL act (as are most of the Acts mentioned) signed by Grant during the lame duck period after the 1874 midterm elections. Here, it is signed two years early, just before the 1872 election.
    [3] Without French backing, the Second Italian War of Independence is butterflied away, as is Garibaldi’s expeditions. Thus, Cavour does not resign in 1859, and remains as PM.
    [4] the Sardinian mobilization occurs earlier than OTL, before the Austrian partial mobilization. This is due to Prussian encouragement and closer ties between the two powers.
    [5] Basically Koniggratz but named after a different nearby village.
    [6] OTL, Moltke, King Wilhelm I, and Frederick were all on a bridge observing the battle and could have all died. TTL, it’s just Frederick, and he dies. This will be important later on, especially regarding Wilhelm II (TTL, his arm is normal) and his upbringing.
    [7] Slight butterflies as a result of momentary confusion stemming from Crown Prince Frederick’s death.

    Sorry for the long absence! Comments, questions, predictions welcome. I love hearing from you all!
     
    Last edited:
    PART XX: The March of Progress
  • PART XX: The March of Progress

    ‘White Leagues and Red Shirts”, a lecture at the Ashburn High School, Vicksburg
    With Prof. Gregory Samson, June 19th, 2018


    Prof. SAMSON: As this is an in-depth course for you students in US History, we really have to begin before the White Leagues and these other groups emerged, and start before the 1868 elections, and talk about the Kuklus Clan. They’re not exactly the most remembered of the supremacist militias, but they were the forerunners of the White Leagues and later groups such as the Reclaimers that continue to make headlines and commit acts of terrorism. But for a brief period in the mid-1860s, the Clan was the premier white supremacist, anti-Reconciliation militia. What set it apart from others, like the Knights of the Camelia? Yes, Samuel.

    SAMUEL: The key thing to remember is that the Clan, unlike the Knights of the Camelia, was predominantly made up of lower-class Southerners, especially veterans of the Confederate Army. This gave them a wider base of support and greater violent zeal than the aristocratic Knights. You can see that with the massacre at Liberty, just a few dozen miles from here, or the attempted assassination of Robert Smalls, or the massive campaigns of voter suppression in states like Louisiana and Alabama.

    Prof. SAMSON: Very good, Samuel. Anyone else want to offer their insights?

    VINCENT: The Clan – and let me begin this by saying that I’m more familiar with the Reclaimers than any of these old-timey militias – was very adept at using wanton, unchecked violence to send their message. This would, of course, be honed by the Redshirts and White Leagues with their flashy, intimidating get-ups, but the shootings, lynchings, burnings of homes, all that was more extreme than simple harassment or beatings that the Knights utilized.

    SAMUEL: Yeah, it was the terror factor more than anything that made the Clan and the Redshirts and the White Leagues so feared and famous.

    VINCENT: But they banned the KC, didn’t they?

    Prof. SAMSON: Yes, the KC was crushed after President Sherman signed the Force Act in 1867. And if we could minimize the side chatter, that would be wonderful. Does anyone know why the Force Act of 1867 was signed? Harry, you haven’t said much, how about you take a stab at that one?

    HARRY: Sure, I guess. That was after the Liberty Massacre… wait, no, was it the assassination of Cassius Clay, that Kentucky abolitionist?

    PROF. SAMSON: That’s a part of it, and Clay’s murder, shot in broad daylight in Louisville, was certainly one factor, and perhaps the most immediate, but does anyone else have an idea on what else caused the Force Act of 1867? Yes, Ella.

    ELLA: Could it have been reports of violence and widespread voter intimidation during the 1866 congressional elections?

    Prof. SAMSON: If this were Yet Another Quiz Show, you’d have the Full Sweep. That’s exactly it. The leaders of the Freedom Party worried that, if they weren’t stopped, the Kuklos Clan could destroy the burgeoning black political presence, and, more importantly, Freedomite political power, in the south. Because, I don’t know about you, but if I saw a bunch of thugs with shotguns and crazy masks walking near the polling places, beating people who were gonna vote the same way as me, I would probably turn around and go home.

    The 1866 congressional elections were the first in which large parts of the South were able to participate and saw a lot of black candidates and Southern Freedomites, such as the namesake of this school, George W. Ashburn, stand for election. William T. Mahone, who was interestingly a Confederate General, had been elected Governor the year prior, and was campaigning heavily for his Reconstructionist Party. The potential success of these pro-Reconciliationist candidates was deeply worrying to people like Nathan Bedford Forrest or Wade Hampton V, who were trying their hardest to return the South as close as possible to antebellum times. And so, they resorted to terror and racial violence to achieve their aims. We learned about the Liberty Massacre a few days ago, but that was a localized attack, while the Kuklus Clan’s actions during the elections spanned most of the South. Indeed-

    KELLI: Weren’t there street battles in Charleston?

    Prof. SAMSON: Yes, there were. I was just getting to that. As you well know, Mississippi, South Carolina, and Florida are the only black-majority states in the Union and have remained that way due to the Land Appropriations Act, which we learned about in our last unit. South Carolina was also the heart of the Confederacy, and there was a lot of opposition there, well, there was opposition to equal rights all over the south, but it was even more vitriolic in South Carolina. What Kelli brought up is the Battle of Calhoun Street, near the Emmanuel African Methodist Church, which was being used as a polling location for the Congressional and Gubernatorial elections. Kuklus Clan members, armed with… with shotguns and pistols, guns, they attempted to block Calhoun Street and prevent all these people from voting. And the thing to remember about South Carolina and the other states included under the Appropriations Act is that, with the economic security that came from the dirt-cheap farmland, the freedmen were able to form these citizen’s defense councils, which were basically militias founded to prevent Clan raids. So, what happened on Calhoun Street, and there’s a movie I’ll probably show you in the last week of school when we’ve run out of material, was the Citizen’s Defense Council in the area sent an armed band to try and force the KC to disperse after the local police were unable to defuse the situation. There was a firefight and hand-to-hand combat-

    OLIVER: Awesome!

    SAMSON -and the KC, outnumbered, were forced to retreat after suffering dozens of casualties. And there were other similar incidents across the south, but the crux of it is, because we need to keep moving or we won’t be able to watch Clash on Calhoun Street the last week of school, that the 1866 congressional elections saw widespread violence and attempted interference by white supremacist militias. And it looks like class ended thirty seconds ago, so y’all can go to your next classes…

    From “AMERICA: A Textbook for Middle-Schoolers” by Reginald Douglas
    Published 1991


    “The violence surrounding the 1866 Congressional elections forced President Sherman to act. Street battles, lynchings, burnings of homes and churches, and all this as white supremacists in state governments and police forces acted to hinder the election process. As he told his circle of advisors, “We must stop the bloodshed, or we risk losing the south for a generation.” Leading Freedomite congressmen had been drafting anti-Kuklus Clan legislation after the Liberty Massacre, but after the violence, including the Battle of Calhoun Street and other vicious clashes between the KC and Citizen’s Defense Councils, President Sherman called for a law against the Clan and similar groups in his 1867 message to Congress. He also strongly endorsed such a measure in his speech at the dedication of the Soldier’s National Cemetery, telling a crowd of political figures, Generals, and dignitaries, “let us not stand by and allow the progress we have made, the new America we have built and paid for with the blood of civil strife, be abandoned to the bandits and marauders who still bear the banner of the Confederacy.”

    The new 40th Congress immediately began work on an expanded anti-Clan act. The new Elections Security Act was designed to not only criminalize violence to suppress the vote, but also to ensure free and fair elections. To the first end, the use of “terror, force, and bribery” to prevent people from voting on “a racially-motivated basis” was criminalized, and the President was authorized to use the army and federal marshals to uphold the law and prosecute violators. To the second end, the US federal government would be given the power to regulate congressional elections, as Freedomites felt they could not rely on state legislatures after Alabama, which had controversially passed a “Black Code” restricting the rights of black Americans, had refused to provide security for polling places, had reduced the number of polling places in certain areas, and had attempted in 1864 to impose literacy tests and a poll tax, but had had the law annulled by Richard Taylor, the General in charge of the Second Military District. As Senator Charles Sumner, in response to Stephen Douglas protesting ‘federal overreach,’ declared, “we cannot allow the states to manage elections for themselves if they use that power to oppress and silence a great number of citizens. When such attacks are made upon our elections, the Federal government must defend the rights of the American citizen, white or negro.”

    More specifically, the Elections Security Act allowed Federal circuit courts to, upon receipt of a petition of at least one-tenth the citizens from a district, appoint an Elections Commissioner to oversee congressional elections. Commissioners would visit polling places, inspect voter rolls, review suspect voter information, administer oaths to challenged voters, prevent non-citizens from casting ballots, and provide the final certification for the election. The Commissioner could also request federal aid in enforcing election results. However, the bill still allowed states to determine certain eligibility requirements, and did nothing against partisan gerrymandering, literacy tests, and criminal disenfranchisement (such as stripping blacks of their right to vote for jaywalking or ‘loitering’), which allowed many southern states to gradually strip southern blacks of their political power starting in the mid-1870s.

    The Elections Security Bill sparked fierce debate in the House, where Southern Nationalists furiously attacked it, with unionist Southerners, mainly from Brazos, Austin, Kentucky, and Missouri, forming the leaders of the opposition. Rep. Francis P. Blair Jr. called it “federal tyranny” and “a blatantly unconstitutional move to entrench the black’s political power, to the detriment of the white man”. Others more tactfully couched their criticisms on the issue of states’ rights, with Senator Thomas A. Hendricks stating that “we cannot concentrate power of such magnitude in the hands of the Federal government. It infringes on the constitutional rights of states to run their elections. My colleague’s intentions may seem noble, but such concentrated power can be easily misused.” Nevertheless, Colfax and his allies forged ahead, as the 1866 elections had also seen the Lincolnite faction’s collapse in favor of more radical Freedomite candidates, giving him enough votes to pass the bill. After over eleven hours of heated debate, the Elections Security Bill narrowly passed the House, having sharply polarized the public. And so, it was on to the Senate, where it faced even stiffer resistance.

    A number of moderate Freedomites demanded concessions, with amendments raising the minimum number of petitioners to one-eighth and requiring at least one state official or, failing that, half of a state’s congressional delegation, to co-sign on a Commissioner’s certification of an election result. While a good half of the southern states were still barred from participating in elections, Southern Nationalists (from North Carolina, Louisiana, Tennessee, and Georgia) threatened to filibuster the bill, while northern Nationalists demanded certain concessions on other legislation in exchange for voting to end debate. One major concession that Sherman, Sumner, and Colfax were forced to make was agreeing not to push for any tariff increases for the remainder of the Congress. On August 3rd, the Senate voted for cloture, effectively ensuring the Elections Security Act’s passage, and after passing the bill by a margin of three votes, sent it back to the House to approve the amendments. The House duly passed the amended legislation

    To better manage the defense of free elections to the House, President Sherman pushed for, and signed in 1868, a bill establishing the Department of Justice, which was headed by the Attorney General and would oversee the US Marshals Service, the Elections Security Bureau, the Federal Investigation and Security Agency, and tasking the Attorney General with overseeing all US Attorneys and representing the US Government in court matters. The Justice Department Act created a whole new department, which quickly became one of the most important Federal departments.”

    From “Plains, Trains, and Indians: The Story of the Frontier”, presented by Tom Hammond and Sam Grenville

    Released on InstaMedia, 2012

    HAMMOND: It was under President Lincoln that the Western Development Act was passed. The WDA granted Congressional approval of, and government funds for, the much-lobbied-for Transcontinental Railroad.

    The Western Development Act answered calls for a faster way to connect the two coasts of the United States, and those calls had only grown after the failure in 1854 of an earlier bill, which foundered due to partisan bickering over slavery. While the 1854 Kansas-Utah bill called for two routes, both a northern and a southern, the end of the Civil War led to the abandoning of the proposed Atlanta terminus and southern route.

    Without a southern branch to consider, Congress deliberated between three main routes: a northern one, through Lakota, Yellowstone, and Oregon to Willamette, a central one along the Platte River and along the Oregon Trail to New Helvetia, and a southwestern route, through Brazos, Austin, and New Mexico, with a terminus in Los Angeles. Brazian and Austinian congressmen and Senators, including Andrew J. Hamilton of Brazos and John Hemphill of Austin, pushed hard for the southwestern route. Meanwhile, northern politicians, especially those from Missouri and Illinois, lobbied for the adoption of the central route, which would bring increased rail traffic through the Midwest.

    GRENVILLE: The debate turned acrimonious, with Hemphill at one point declaring:

    “The northern interests would content themselves with concentrating infrastructure and the wealth it brings into their own hands, while leaving their southern countrymen, even those who fought with them in the recent war, behind. Let me remind those people that there’s a whole other half of the country that could use some railroad track.”

    -Senator John Hemphill (N-AU)

    GRENVILLE (cont.): Northern politicians refused to countenance a southwestern route, believing it would allow the south to once again resume the dominance over the north that had existed in the 1840s and 1850s. But, Speaker Sherman, loathe to approve the southwestern passage, knew he did not have the votes to push through the central route. First, while Midwesterners, both National and Freedomite, supported the aforementioned path, many southern Freedomites, such as Congressmen Robert Smalls and Newton Knight, and Senator Hiram Revels, supported a southwestern route.

    Eager to broker a compromise and achieve some sort of legislative victory in his own right, President Lincoln suggested the approval of both a southwestern and a central route, with northern termini at Chicago and Independence, and southern termini at Galveston and Travis. The two would be connected at St. Louis. The compromise was quickly adopted, and the Western Development Act was passed without much further controversy.

    HAMMOND: And that brings us to the ‘present’, where John Sherman, now President, is overseeing the awarding of contracts as the United States prepares to actually build the railroads. Armies of surveyors were dispatched to Nebraska and the mountain west, while John Wesley Powell led surveying expeditions into Rio Grande and New Mexico to find the best route.

    The Southwestern Route, already determined to begin at Galveston and proceed north-west to Travis, Austin, would then, based upon Powell’s expeditions, proceed south to San Antonio and then north-west through the town of Pecos to El Paso in Rio Grande territory, and then to what is now Crocker, Taylor and Wallace, Taylor, before turning north to what is now Norton, New Mexico, but was then known as Santa Catalina. From Norton, the line would go almost straight west, stopping at what is now Santa Ana, Colorado, then north-west to San Bernardino and Los Angeles, its Pacific terminus. Throughout its path, the Southwestern route followed as many rivers as possible, as Powell had conducted his expedition by flat-boat and raft.

    The Central Route was in some ways easier to survey, as it passed through plains and was in a less arid climate, though it was more mountainous. A number of US army surveyors made the trip, under the insistence of William Tecumseh Sherman, who was in charge of that area of the Plains. The Central Route was to leave Independence and proceed north to Fontenelle, Nebraska, along the Oregon Trail through Tilden, Lakota, Rock Springs, Yellowstone, Payute, Yutah, and west Argenton and New Helvetia, Sacramento. The final terminus would ultimately be Encinal, just north of San Francisco.

    […]

    The Western Development Act had authorized the creation of three new companies to construct the railroad. The actual establishment and funding of these companies was delayed until after Sherman’s inauguration, due to political gridlock after Lincoln’s failed attempt to pass the Ten Percent Plan. The Pacific Railroad Acts, passed during Sherman’s first hundred days in 1865, rectified this problem. To construct the central route, two companies were authorized: The Union Pacific, and the Central Pacific. To construct the southwestern route, the Sonora-Pacific was created. The companies were funded by a combination of Federal financing and investments from wealthy Sacramentans, Coloradans, and eastern businessmen eager to capitalize on the flood of opportunities the new railroads would bring. The Central Pacific was effectively run by four Sacramentan businessmen: Leland Stanford, Timothy Phelps, Mark Hopkins, and Charles Crocker. The Union Pacific was run by Thomas C. Durant, a friend of Abraham Lincoln, and the Southern Pacific was run by former Generals William Rosecrans, Richard Taylor and Lew Wallace, and San Francisco businessman Joshua Norton. The three companies quickly raised tens of thousands of dollars from other investors as preparations began to actually construct the first transcontinental railroads.

    After the passage of the Elections Security Bill, President Sherman took a break from Washington to visit St. Louis, Independence, and Galveston for the breaking of ground on the new transcontinental railroads. In St. Louis, Sherman gave a brief speech, before travelling by train to Independence, where the new railroad was starting from. A ceremony was held, with a locomotive draped in flag bunting and a military band, where Sherman heralded the “monumental task you are about to embark on” as “a great triumph for our nation”. He drove in the first spike of the project, a specially made golden spike engraved with the names of the railroad company heads. A second, similar ceremony was held in Galveston, in the first major visit of a US President to a southern state since before the Civil War. Here, Sherman labeled the southern route as “the dawn of a new era for the South – an era of industry, commerce, and freedom”, and drove in a similar golden spike. Work on the Transcontinental Railroads had officially begun.

    Construction on the railroad began in earnest, despite disease, bad weather, and Indian raids. In spite of these hardships, a virtual army of workers carried on building the railroad that would bring America further together…”
     
    Last edited:
    PART XXI: The 1868 Election
  • PART XXI: The 1868 Election

    From “The House of Freedom: A Story of America’s Oldest Party” by Leander Morris
    Published 1987


    “After an eventful first term and a successful implementation of much of his agenda, President Sherman looked forward to an easy renomination by his party. He had shepherded the Transcontinental Railroads through the final hurdles, passed a comprehensive, landmark voting rights protection act, and had stabilized the nation’s financial system after some post-war adjustment pains. And, perhaps most importantly, he had managed to reunite his party after the contentious election of 1864.

    The 1868 Freedomite National Convention, held in Baltimore (Sherman had pushed for Baltimore as a show of unity – previously, all FNCs had been held in midwestern cities), was a calmer and briefer affair than the 1864 Convention. A new convention chair, Rep. William D. Kelley, had been chosen by acclamation after the previous holder of the position, Hannibal Hamlin, announced he did not want the job again. Kelley’s selection was a sign of the radical shift of the Freedom Party, as much of the old Lincolnite faction had been turfed out in the 1866 elections. A strong supporter of black suffrage and civil rights, Kelley was also acceptable to the remaining moderates in the party, as he was a close friend of Abraham Lincoln.

    Sherman was nominated unanimously via voice vote, a strong show of support as almost the whole convention shouted ‘aye’. Henry Wilson was nominated on the first ballot, though Lafayette S. Foster, despite declining to be a candidate, received 12 votes. The nomination was, however, made unanimous after a motion by one of the delegates was adopted. Sherman’s platform was somewhat less ambitious than the platform of 1864, mainly because Sherman had accomplished many of his goals in his first term. The 1868 platform called for ‘continued efforts to be made in restoring the American financial system to a stable currency’ and supported ‘further efforts to safeguard the rights and freedoms of the freedman’.

    The convention had gone off without a hitch, and President Sherman looked forward to his reelection…”

    From “The Builders of the West” by Steve Henderson
    Published 2009


    “Joshua Norton made his fortune in Peruvian rice, taking advantage of a Chinese rice shortage by purchasing a large quantity of Peruvian rice that had just arrived in San Francisco at 4 cents per pound, and cornering the market, which allowed him to sell the rice for a steep markup. With his success in rice trading, Norton turned to other ventures, including real estate (an affluent neighborhood of San Francisco is named Norton Gardens after him) and lived a quietly prosperous life for more than a decade. That changed when he heard about the new transcontinental railroad. While most San Francisco investors flocked to the Central Pacific, Norton saw an opportunity to grow even richer in the southern route, and pooled his resources with William Rosecrans, Lew Wallace, and Richard Taylor to fund the Southern Pacific, and making the quartet the majority shareholders, and principal controllers, of the SPRR.

    Norton hoped to expand his real estate empire into Colorado, and saw an opportunity to establish trading depots, hostels, and other businesses along the railroad’s route. Further, as he was going into business with Generals, not seasoned businessmen, he was able to have far more influence over the Southern Pacific’s decisions than the businessmen running the Central or Union Pacific. Norton arranged for two termini to be constructed – a main, mixed-use terminus in Los Angeles, and a smaller, more passenger-focused one in San Diego. This was because Norton had purchased a large stretch of beachfront property on Coronado Island, and hoped to develop it into a luxury beach resort. Norton planned this complex meticulously, planning a grand, Italianate train station on the mainland, with a bridge connecting the station (and San Diego) to Coronado Island. Wanting a cable car line to encourage further (Norton-funded) development of Coronado, he hired John A. Roebling to design and build a suspension bridge to accommodate foot, street, and cable car traffic to and from Coronado Island (Coronado Island still maintains this cable car line, and Norton’s grand hotel still operates, though as a Schenger property).

    The Coronado Suspension Bridge, which was completed in 1874, sparked a lifelong interest in bridges for Norton, and upon his return to San Francisco, he lobbied for a suspension bridge to connect that city to Oakland.”

    From “The Titan of Europe: A History of the German Empire” by
    Published 2008


    “With the death of Kronprinz Friedrich at the Battle of Sadowa, his young son Wilhelm was the new heir to the Prussian throne. While his father had been considered a liberal and was a favorite of German reformists, Wilhelm I was of a more conservative persuasion and sought to impart this upon the new Kronprinz. Otto von Bismarck, the powerful chancellor of Prussia (and by extension, North Germany) also took a role in the Prince’s upbringing, wanting to instill in him not just the conservative values of his father, but also the need for cold, calculating pragmatism and strong alliances.

    As he grew up, Wilhelm took to these lessons eagerly, finding the world of diplomacy a fascinating exercise. Biographers have ruminated on this for decades, with the consensus being that he loved the chess-like machinations of diplomacy, realpolitik, and compromise. But suffice to say, once Wilhelm came to rule Germany, his impact on not just his own nation, but on the world as a whole, cannot be understated.”

    From “Brockman High Class of 2015 EHAP Exam”

    Question: Describe the effects of the Annexation on Cuba on either the US or Spain. Were the effects positive or negative? Explain.

    The annexation of Cuba had a major effect on Spain [elaborate more in your opening sentence]. The loss of Cuba caused a lot of political turmoil in Spain, as such a wealthy and resource-rich colony had a very important role in the Spanish economy [rather redundant – could be shortened]. Not only was Spain humiliated by the US strong-arming them into selling, but Queen Isabella II’s mercurial, ever-shifting favor had resulted in a dysfunctional government where the Prime Ministership was cycled between different factions [A good statement – next time, don’t try and work in big words where they don’t fit well]. While Cuba’s annexation itself did not cause Queen Isabella’s overthrow, it did weaken her personal popularity, and led to a lot of public outrage at the government for bending to US demands. While liberal and Republican exiles saw Isabella as the root of Spain’s ills and had several plans to depose her, it was the perceived humiliation of being strongarmed into selling Cuba that damned Isabella in the public’s eyes. After the sale of Cuba, public anger built and built, and the Queen was tarred as the one who destroyed Spain’s American empire once and for all (despite Puerto Rico still being a Spanish possession). The last straw for Queen Isabella’s governmental house of cards [great phrasing] was the death of Leopoldo O’Donnell, a several-time Prime Minister and the glue that held the ruling Union Liberal together. His supporters, many of whom did not like Isabella, returned to the opposition. In September 1868, a naval mutiny occurred in Cadiz (coincidentally, the same place where a coup was launched against the even more unpopular Ferdinand VII). The mutiny spurred Generals Juan Prim and Francisco Serrano to denounce Isabella’s government, and that in turn brought much of the army to defect to the opposition.

    Isabella quickly fled to France, where she remained until her death. Serrano, Prim, and the rest of the opposition formed a provisional government and drafted a new, liberal constitution while the Cortes searched for a new King. Ultimately, Prince Amadeo of Savoy was selected as the new King of Spain, and his coronation inaugurated a new era of liberal government in Spain, shepherded along by Prim and Serrano’s able hands, with both serving as Prime Minister. The loss of Cuba helped spur the collapse of Isabella’s government, which definitely helped Spain.

    [Very nice work, Jon. Next time try to be more concise and try to make your writing flow better. 9/10. – Ms. Shaw]

    From “World Events”, on the Foreign Intelligence Service’s ‘World Factbook’
    Published 2017


    1868 was a relatively uneventful year, with Europe still in the decades-long ‘Continental Peace’ that would only truly shatter in the 20th century. That being said, here are some of the more interesting things that happened:

    April 29th: General William T. Sherman brokers the Treaty of Fort Sublette with the Plains Indians. The Treaty ended Red Cloud’s War and saw the Federal government create a Sioux Reservation, brokered peace between the Lakota and Ponca Indians, and mandated the government’s abandonment of several forts and outposts along the Bozeman Trail. The Treaty of Fort Sublette was generally upheld by General Sherman’s brother, John Sherman, during his administration, though several provisions were ignored by the more expansionist Richard Taylor. Nevertheless, the Treaty of Fort Sublette laid the foundation for a fairer Federal policy towards the Indian peoples of America, though such a policy has admittedly taken a long time to coalesce.
    [...]
    June 10th: Prince Mihailo Obrenovic of Serbia survives an assassination attempt in Belgrade
    [...]

    From “From Taylor to Linton: The Evolution of the National Party”, by Tom Jenkins
    Published 2009


    “Stephen Douglas shocked many in the Nationalist Party when, in February of 1868, he announced that he would not stand as a candidate for the nomination of the party he helped to found. As he told an assembly of Nationalist Party leaders, he disliked the “convention politicking,” thinking it “a chaotic and thoroughly exhausting system that [he didn’t] want to navigate again.” With Douglas out of the running early, a whole host of candidates emerged, meeting with important partymen, shaking hands at gatherings, and giving speeches. Several major candidates emerged, including former Quartermaster General, and 1864 vice presidential nominee, George McClellan, Indiana Senator Thomas A. Hendricks (who had been accepted into the Nationalist Party despite his role, as chair of the 1860 DNC, in allowing Horatio Seymour to pass his peace plank), and Congressman John A. Logan, who had served as a divisional commander during the New Orleans Campaign and had risen to a corps command by the Atlanta Campaign. Logan had been a Democrat, had briefly joined the Ignorants and the Freedomites, before following Stephen Douglas to the Nationalist Party. A number of minor candidates, including Francis P. Blair Jr. (who’s influence within the party had declined significantly since 1864), Andrew Johnson (who, without Douglas, was no longer such a magnet for anti-Douglas forces within the party), and 1864 nominee William R. Doolittle (who did not declare his candidacy and never campaigned).

    The Convention was held in Independence, Missouri, which was touted by the party as a “crossroads of the nation – west, south, and north”. The convention was gaveled in as the assembled delegates wondered what course the convention would take without Douglas as a candidate.

    The first ballot saw McClellan take a narrow lead of 5 delegates, with much of his support coming from the west and south, though he split the south almost evenly with Hendricks. Louisiana was a curious lone island of support for Logan within the south, mostly thanks to the endorsement of Richard Taylor, who had been Logan’s commander for much of the war and thought he was an “able commander and leader, and one of my best Generals”. Taylor thought McClellan to be a “pompous, arrogant fool” and disliked Hendricks for his pro-peace views during the war. Logan split the Midwest in three with McClellan and Hendricks and enjoyed the strong support of northern delegates. Minor candidates took the rest of the vote, with Andrew Johnson winning Tennessee and peeling off a couple of delegates in the other southern states. After the first ballot, Doolittle, Blair, and several others who did not even win a single delegate withdrew their names, though Johnson stubbornly remained in the running.

    The second ballot saw a dramatic shift, as McClellan bled delegates. Logan surged into a strong lead of just under 30 delegates, while McClellan sank into third place, with many of his midwestern delegates going over to Logan. Some of the more conservative southern delegates were worried about nominating Logan, as they disliked his previous association with the Freedom Party (though he was decidedly in the moderate camp and was regarded as one of the most conservative members of the party) and felt he was too moderate. The third ballot saw the almost total collapse of McClellan’s candidacy, as those delegates who still supported him due to his wartime service defected to Logan, who had had a more illustrious record than McClellan, who had been sacked by President Fremont for being too cautious. Logan emerged with just six votes shy of a simple majority (though he needed a two-third majority to actually be nominated). Hendricks received most of McClellan’s southern support, though Andrew Johnson also made minor gains, enough for him to refuse calls to withdraw his name from contention.

    The fourth ballot was the deciding one – Logan received 209 votes as he secured most of the northern and midwestern delegates, while Hendricks’s support in the mid-Atlantic collapsed. With Logan’s momentum clear, Hendricks approached Logan with a deal – in exchange for his support, Hendricks would become the vice-presidential nominee. Logan agreed, and on the fifth ballot, was nominated unanimously. Hendricks was nominated for vice president with only the 7 delegates from Tennessee refusing to vote for him (they supported Andrew Johnson).

    A revised version of the 1864 platform, this time condemning the Elections Security Act and other ‘radical’ policies of the Sherman administration, was adopted by the convention, before it adjourned five days after first convening.”

    From “We Must Endeavor: The Story of Reconciliation” by Sir Andrew Dickerson
    Published 1997


    “John A. Logan presented an interesting opponent for President Sherman. Having served ably in the Civil War, Logan ran on his war record while continuing to endorse Douglasite proposals such as expanding the homestead acts, aggressive Federal support for westward expansion, and the withdrawal of Federal troops from the south. He, his surrogates, and friendly newspapers attacked Sherman for “radicalism… radicalism that will turn this nation into an anarchic non-state, ruled by whichever mob the public finds favorable.” For his part, Logan actively campaigned, taking a page from Stephen Douglas’s energetic travels in 1860. Precedent held that a candidate was to rely on allies and the press to spread his message, while he held small events and presses spread speech copies around. Logan broke with this, speaking at large event halls and outdoor gatherings. A strong speaker, Logan drew sizeable crowds during his sweep of the Midwest, forcing Sherman to respond lest he lose critical swing states like Indiana or New York.

    While Sherman was not an especially inspiring speaker, he went on a speaking tour of modest size, visiting central Illinois and Indiana. However, he still relied on more charismatic allies like Charles Sumner and Henry Winter Davis to spread his message. And Sherman’s message was simple – a gold standard, internal improvements, and protective tariffs. He also endorsed federal support for voting rights, saying at a campaign stop in Peoria that “the Federal government’s duty is to ensure our nation survives as a free and united one. If some citizens cannot vote, then our existence as a democracy is in jeopardy.” But Sherman did not run entirely on what he hoped to accomplish in the future, but mainly on his previous accomplishments. Everywhere, Sherman campaign posters emphasized the financial stability, the transcontinental railroad that, as Sherman put it in a speech in Indianapolis, “will be the final triumph of the United States over the untamed vastness of the west”, and the successful reintegration of much of the south back into the Union.

    Sherman enjoyed a comfortable advantage, with a strong financial recovery, buoyed by massive infrastructure projects (namely, the railroads) and the swarm of investors and hired laborers that cropped up to build them. Though the south chafed under the new civil rights laws and were thus backing Logan, Sherman enjoyed the support of the radicals, the workers with steady jobs, and the freedmen grateful for civil rights protections.

    In the end, despite an energetic campaign on the part of Logan, President Sherman coasted to a comfortable victory, winning 54 percent of the popular vote and 214 electoral votes, while Logan won 45 percent of the vote and 120 electoral votes, even narrowly losing his home state. Down ballot, the Freedom Party gained a handful of seats in the house and gained three seats in the Senate (defending the seats of Frederick T. Frelinghuysen and Benjamin Wade and picking up two seats in Colorado and Indiana). While not a resounding win, Sherman could remain confident in having Congressional support to pass his agenda, and he fully intended to make use of this opportunity.”
     
    Last edited:
    PART XXII: Panic! At the Stock Exchange
  • PART XXII: Panic! At the Stock Exchange

    From “America Abroad: Foreign Policy Through the Ages” by Evan Q. Jones
    Published 2017


    “The Louisiana Claims had been put on the back-burner during President Sherman’s very domestic policy-focused first term. However, Secretary of State Seward had been lobbying for official US action on the matter since the Lincoln administration, but Sherman had asked him to wait until his second term to demand compensation, fearing that if a diplomatic crisis developed, his domestic agenda could be imperiled. As a fellow radical, Seward agreed to wait. Now, it was Sherman’s second term, and so Seward moved ahead with his plans. The United States alleged that, by constructing the CSS Louisiana and several other ships for the Confederate navy, the United Kingdom had violated their neutrality. It wasn’t just commerce raiders like the Louisiana or the Pride of the South that was included – most of the other ships named were regular warships, like the iron-clad CSS Robert E. Lee and the frigates Tar Heel and Palmetto.

    Seward wanted to demand territorial compensation rather than financial compensation, seeing the Louisiana Claims as a means to the end of total US domination of the Pacific coast. The Mexican War had already given the US an outlet into the Baja Gulf, and Seward had overseen the purchase of Alaska in 1867. Thus, the acquisition of British Columbia was, in Seward’s mind, the final jewel in his envisioned Pacific crown. Several other Senators echoed Seward’s proposal, with some even suggesting that the Red River Colony (today the Province of Assiniboia) and Nova Scotia be added to the demanded territory. Throughout the spring and summer of 1870, the push for some sort of American annexation of Canadian land reached its apogee, while the British government dragged its feet, while American financial, industrial and mercantile interests pressured Sherman for a quick resolution to the issue.

    Then, two events once and for all ended any notion that America would walk away with Canadian land. First, British Columbia, which Seward had hoped would want to join the USA, instead joined the Canadian Confederation after being offered very generous terms to join by the Canadians. Second, William Seward, overworked and almost seventy, fell ill in early October 1870 and died within a month. Sherman, seeking to bury the hatchet and move past territorial demands, appointed fellow Ohioan, and former Governor of that state, Rutherford B. Hayes to serve for the rest of Sherman’s term. Hayes did press for some sort of settlement, but the matter of the Louisiana Claims would not be settled until the next administration, when Secretary Bayard was able to get an international arbitration council to settle the matter.

    Nevertheless, Secretary Hayes was not idle, including negotiating an immigration agreement with China following the Panic of 1870 and reaching an agreement with Porfirio Diaz, the President of Mexico, to fight bandits in conjunction with the US after President Sherman authorized American cross-border expeditions to hunt down bandits. This won Hayes popularity in the Sonora Territory (today the state of Taylor, and a city in Taylor is named for Hayes), and defused a potential crisis. He also brokered a treaty with Korea, defusing a crisis resulting from the disappearance of the Merchant Marine ship General Thomas in Korean waters. While largely forgotten, Hayes was one of the more successful Secretaries of State, with his numerous agreements, accords, and treaties an excellent example of American diplomacy. Much better remembered (in academic circles, at least), his successor Thomas F. Bayard forged a similar brand of compromise, negotiations, and fostering friendly relations abroad.”

    From “AMERICA: A Textbook for Middle-Schoolers” by Reginald Douglas
    Published 1991


    “Reconciliation marched on through the first six years of the Sherman administration, not just in Congress, but in the Constitution as well. The Thirteenth amendment, ratified during the final months of John Fremont’s presidency, had been a tremendous step forward for civil rights in the United States, but many Freedomites wanted further action to cement the achievements in that realm. After all, the Elections Security Act could be easily repealed if the Nationalists won a government trifecta.

    The first of these was the Fourteenth Amendment. This amendment has served as the basis for numerous landmark Supreme Court decisions, such as Jane Doe v. Arkansas, Kennesaw v. Franklin, and others. The Fourteenth Amendment’s first section includes several very important clauses – the Privileges and Immunities clause, the Due Process clause, and the Equal Protection clause – all of which have served as the justification for the aforementioned Supreme Court decisions. The Fourteenth Amendment was ratified in 1867.

    The Fifteenth Amendment is significantly narrower in scope than the Fourteenth. This amendment affirms the right of all US citizens to vote, regardless of “race, color, or previous condition of servitude”. This amendment was passed to ensure the constitutionality of the Elections Security Act, and was ratified in 1870.”

    From “Nationalism, Imperialism, and the Death of Old Europe” by Samuel Shaw
    Published 2017


    “After the great victory for Italian unification that was the Brothers’ War and the full annexation of its new territories, North Italy turned its attention south, to the still-independent Kingdom of the Two Sicilies. One of the few projects of the Risorgimento that was jointly agreed to by the Conte di Cavour, Giuseppe Garibaldi and King Victor Emmanuel II, the annexation of the Two Sicilies was seen as one of two ‘ultimate goals’ for North Italy, goals which would allow North Italy to become just ‘Italy’. To this end, Garibaldi set about assembling a force that could depose the government of the Two Sicilies, which was no small feat. While France was opposed to any further ‘acts of unification’, with Marshal MacMahon even installing 20,000 troops in Rome as a guard against annexation. Nevertheless, Cavor, Garibaldi, and the King could count on overt North German support, and tacit British backing.

    Cavour never lived to see the incorporation of the Two Sicilies, as he died due to overwork and a mysterious fever in 1866, but his former coalition partner, Urbano Rattazzi, succeeded him as Prime Minister and continued plans for Garibaldi’s expedition. Contacts were established with Francisco Crispi, a nationalist figure in Sicily (and future Prime Minister), but Rattazzi and the King refused to launch an invasion without a suitable casus belli. There had been a series of uprisings against Bourbon rule in Sicily in 1860, and Rattazzi suggested that, if Garibaldi landed with a small company (the famed Garibaldini) in Sicily and attracted enough popular support, it would provide cover for a full-scale invasion from the north via the Papal States. Garibaldi was at first uncertain but was finally persuaded.

    Garibaldi assembled 1,241 volunteers in the port of Genoa for his bold expedition. Two steamships were ‘commandeered’ by the Garibaldini (in actuality, they were given to the expedition, but in secret so as to maintain plausible deniability) and the expeditioners set sail for Sicily on May 9th, 1869. After enjoying an unofficial escort from the Royal Navy, Garibaldi and his men landed at Marsala, a town on the western end of Sicily, on May 15th, where they were greeted by Francisco Crispi, who had organized local support for the Garibaldini. Despite the loss of both of their ships, the Garibaldini landed safely and advanced east to Salemi, where Garibaldi announced he was establishing a ‘provisional government’ in Sicily, until such time as North Italy could annex the island.

    The first battle of Garibaldi’s expedition was fought on May 21st, when he and his volunteers encountered about 2,000 Neapolitan troops on the hills of the Pianto Romano, near Calatafimi. Despite being outnumbered, Garibaldi forced the enemy to retreat, boosting the morale of the Garibaldini and prompting locals to join their ranks, swelling their numbers to about 1,500. The Neapolitans, demoralized by their defeat, fell back and Garibaldi pressed forwards to Palermo.

    […]

    With the Italian army pouring into the north of the country and Garibaldi nearing the Straits of Messina, King Francis II was in an untenable position. When Garibaldi landed in Calabria, it was truly over. After a series of disastrous skirmishes, Francis and his government retreated to the fortress at Gaeta, while Naples fell to Garibaldi’s volunteers. On November 14th, King Victor Emmanuel and Prime Minister Rattazzi met with Garibaldi at Teano, though the war did not end until Francis II surrendered in mid-March of 1871 and left for exile in Rome. The Two Sicilies was annexed into the Kingdom of Italy (renamed by a unanimous act of Parliament), and the Pope was forced to cede much of his western territory, relegating his Temporal Realm to just Latium. Italy had emerged from the patchwork of medieval states, and it looked eagerly outwards…”

    From “A Financial History of America” by Fred Denton
    Published 1998


    “A string of decisions caused the Panic of 1870, one of the worst recessions in American history. The first domino that triggered the Panic came a year earlier. Black Friday is the name given to an attempt in September 1869 to corner the gold market. Jay Gould and Jay Fisk, the corrupt and scheming co-leaders of the Erie Railroad, sought to enrich themselves by influencing the monetary policies of the US Treasury. President Sherman had directed his Treasury Secretary, Salmon P. Chase, to sell Treasury gold and purchase war bonds on a weekly basis in order to reduce the national debt, which had been rather neglected while the President focused on stabilizing the post-war economy. Gould and Fiske sought to persuade the government to halt sales of gold (these sales kept the price of gold artificially low, though they kept a stable money supply) while buying up large amounts of gold, then selling for profit.

    Despite an unsuccessful attempt to gain the ear of President Sherman via an equally fruitless move to become business partners with his brother, General William T. Sherman (Sherman refused, believing that any business engagements had to wait until he retired, which he would in 1881), Gould and Fisk pressed on, eventually installing an informant, the gullible former Union General Ulysses S. Grant, in Treasury Secretary Chase’s office staff and opening accounts in preparation for large gold purchases. At last, they were ready to set the final phase of their scheme in motion. Via their ear in the Treasury Department, Gould and Fisk persuaded Secretary Chase that a pause in gold releases would benefit farmers. As Grant recounted during sworn testimony, “I informed the Secretary that an increase in gold prices would grant farmers greater ease in selling their crops in foreign markets. The Secretary knew that the best way to obtain this increase was to halt gold sales for a couple of weeks.”

    Salmon Chase agreed to Grant’s suggestion and, telling President Sherman that a moratorium on gold sales was needed to allow the Treasury Department to “ensure all records are in order”, ordered that all gold sales would halt for the next three to six weeks while the Treasury examined all transaction records to ensure all records were consistent and all transactions were above-board. Now, Chase was by no means a personally corrupt person, and he was, as the later investigation ruled, unaware of the plot by Gould and Fisk, or of Grant’s connections with the pair. Rather, Chase was preparing for a Presidential bid in 1872, and saw a fiscal measure that could benefit farmers as a strong part of a campaign platform. Thinking that a gold sales pause could curry favor with western states and small farmers, Chase forged ahead. With confirmation from Grant that sales would halt at the end of August, Gould and Fiske sprang into action on September 1st, buying up over $1.6 million in gold. The pair would ultimately make over $16,000 per each dollar rise in the price of gold. Within a week, the price of gold had increased to $138 per ounce, an increase of $5.50. Sherman had been following the events closely and sensed something was amiss, but waited, with Secretary Chase promising him that his records-gathering project would yield answers. On September 8th, Grant and several of Gould’s associates sold their gold, dropping the price. Gould and Fisk remained confident, however, and continued purchasing large quantities of gold as Chase continued the sales moratorium. Their new approach was to buy as much gold as possible, even at the inflated price. The idea that this could ruin the national economy probably never even crossed their minds. Starting on September 15th, Gould and Fisk initiated their new plan, and by the 22nd owned over $75 million in gold between themselves, almost triple the public supply of gold in New York, and the price of gold was $145 per ounce. Sherman was at this point alerted to the scheming by Ulysses Grant, who had decided to leave the ‘Gold Ring’ out of fear for the national economy. Furious, Sherman immediately (and furiously – the film Sherman dramatized this in a major scene) sacked Chase for his duplicitous, self-aggrandizing conduct that had driven the country to the brink of an economic disaster. With Deputy Secretary George S. Boutwell serving as acting Secretary, gold sales were immediately resumed, with $5 million in gold released onto the market and $5 million in war bonds purchased.

    Minutes after the sales resumed, the price of gold slumped to $136.50 per ounce, ruining Gould’s and Fisk’s plans. While Gould and Fisk escaped with meagre winnings (though nothing like the net worth they had amassed at the height of the scheme), many speculators who had purchased gold were ruined, while short sellers made out like bandits. Fortunately for Grant, he had sold out early and retired to upstate New York to farm and write his memoirs. The crisis had been defused successfully, and Treasury Secretary Boutwell and President Sherman were widely praised for their quick action once Chase’s scheming was uncovered. Nevertheless, the faith of investors and the general public in the markets had been greatly shaken, despite the Garfield Commission’s two-year-long investigation. This public suspicion towards financiers and the financial markets post-Gold Panic is widely held to be a factor in the Panic of 1870.

    […]

    The Silver Coinage Act of 1870 was a great misstep in the short term on the part of President Sherman, though it ultimately contributed to America’s financial stability, with relatively few interruptions until the Great Panic of 1901 and the Long Recession of 1931-1935. Sherman had long supported a gold standard and had worked for much of his post-war career to bring that about. With the price of silver decreasing with new mining operations in the western territories, more and more people were bringing their metals in to be exchanged for coin, leading many, Sherman included, to worry about the future of gold.

    Thus, the Coinage Act was born, co-authored by Thomas F. Bayard in the Senate and James Garfield in the House. The bipartisan nature of the bill was used to help sell it in the papers, but a key part of the bill was kept secret from the public. Oddly, the bill’s abolition of silver-backed currency was barely debated in the Senate, with western politicians mostly arguing over the ‘coinage charge’ – the fee paid to the Mint to have bullion converted into currency – denouncing it as a tax on miners and metal refiners. Though Sherman pushed for the coinage charge to be retained, it was struck from the bill by an amendment and the amended bill passed the Senate by a comfortable margin. Speaker Colfax quickly shepherded it through the House (though it passed by a razor-thin margin), and it was signed by President Sherman on June 1st, 1870. The contents of the bill were uncontroversial… until, of course, the Panic hit.

    […]

    Cook & Moorhead Company was one of the largest, most important banks in the United States. After the Black Friday gold conspiracy, C&M was forced to look for other sources of capital, as Black Friday had made selling Treasuries a riskier investment. Thus, C&M turned to railroads. In December of 1869, the bank became the exclusive bond agent for the San Francisco and Humboldt Bay Railroad, founded in 1863 to provide better access to the burgeoning lumber industry in northern Sacramento. C&M found the bonds difficult to sell to investors, and by the end of July, owned over 75% of the SF&HB, severely overextending the bank. Things got worse when a series of floods and landslides severely impeded construction on the railroad, causing investors to withdraw their money due to the liability these construction setbacks posed to the bank’s financial security. C&M was unable to sell off enough bonds to offset the withdrawals and was consequently in dire financial straits. Already foundering, C&M finally collapsed after a bank run by panicking investors.

    Without the assets to repay them, many were left ruined. When the news was broken to the New York Stock Exchange, the price of Equities (assets with debts or liabilities attached to ownership) plummeted, triggering a domino run of bank runs and bank failures throughout the country. It’s credit worthless, Cooke & Moorhead went bankrupt in the aftermath of the financial meltdown, though many of its partners had seen which way the wind was blowing and sold off their assets early. However, the more valuable assets of Cook, Moorhead, and the other senior partners (who were ruined by the bank’s collapse) were seized by the government.

    As the bank failures rippled away from New York City, factories felt the crunch, with thousands of workers laid off due to the financial strain of their employers. Starting on September 14th, the Stock Exchange closed for two weeks, and by the end of October, 52 of the nation’s railroads had gone bankrupt, and another 57 failed before a year had passed. As a result, the construction of new railroad mileage in a year fell by almost 6,000 miles. By the end of 1871, 19,000 businesses had failed, and unemployment would reach a height of 7.7% by 1874. Wages were cut, profits shrank, and new construction was put on hold. The Coinage Act caused a contraction of the monetary supply, which raised interest rates and severely harmed farmers and others with heavy debts (though worries that a gold standard would cause severe deflation were overblown, as new mines opened throughout the recession). Thousands upon thousands were unemployed, farmers were foreclosed upon, businessmen were left bankrupted, and the railroad boom lurched to a sudden end. Sherman and Bayard were burned in effigy by protestors. America had entered a severe economic depression.

    In November of 1870, the Freedom Party suffered a crushing defeat at the ballot box, losing a record-shattering 85 seats in the House and 14 in the Senate. Freedomite congressmen were swept out of office across much of the south (save Mississippi, South Carolina, and Florida), the mid-Atlantic, and even the Midwest, while five state legislatures flipped wholly or in part to the Nationalists. As the economy slid further into the murky depths of recession, newly elected Speaker Samuel J. Randall, the first Nationalist Speaker and the first Speaker not from the Freedom Party since 1857, vowed to stop “the radicalism that has percolated in Washington for the past fourteen years” and pledged that “America will have sound money, stable jobs, and real freedom”. Reconciliation was drawing to a close, and a new age of industry, opportunity, staggering wealth and shocking poverty was dawning.”


    END OF ACT THREE
     
    ACT IV: Concert of Nations
  • concertofnations.png

    "The candy store paupers lie to the share holders
    They're crossing their fingers they pay the truth makers
    The balance sheet is breaking up the sky
    So I'm caught at the junction still waiting for medicine
    The sweat of my brow keeps on feeding the engine
    Hope the crumbs in my pocket can keep me for another night
    And if the blue sky mining company won't come to my rescue
    If the sugar refining company won't save me
    Who's gonna save me?"
    -Midnight Oil, "Blue Sky Mine"
    -----

    "But it's the same shining city for those relative few who are lucky enough to live in its good neighborhoods. But for the people who are excluded, for the people who are locked out, all they can do is stare from a distance at that city's glimmering towers."
    -Mario Cuomo
    -----

    "Those nostalgics among us look back to the Gilded Age, to the vast mansions, reckless opulence, and towering wealth. They look fondly upon what they hail as an era of international cooperation, endless innovation and boundless opportunity. But underneath the councils held by the Great Powers, beneath the new factories and railroads, lies a less enticing past. While Henry Flagler built a vast oil and railroad empire and Thomas Scott became rich from his steel mills, they spurned competition and imposed terrible conditions on their employees. While the European empires met and defused crises, they carved up continents with abandon, made agreements without regard to smaller states, and tried to hold back the tide of Democracy. There's always another side. So we can look back to the good parts for inspiration, but we must also examine the abuses, mistakes, and problems of the past so we can do better."
    -Pres. Jerry Bonaparte
     
    PART XXIII: For Taylor, and Tilden too!
  • PART XXIII: For Taylor, and Tilden too!

    From “From Taylor to Linton: The Evolution of the National Party”, by Tom Jenkins
    Published 2009


    “The Freedom Party had governed with little organized opposition for fourteen years. After their crushing defeat in the 1870 midterm elections, many within the Nationalist Party saw a reason to hope in 1872. Economic recessions almost always hurt the incumbent party – Martin Van Buren lost because of the Panic of 1837, Franklin Pierce and Sam Houston were hurt by the Panic of 1856, and now the Freedom Party was the incumbent party during a recession, and this was the worst recession in US history up until that point. President Sherman had become the most unpopular President since John Quincy Adams, and whoever the Freedomites nominated to succeed him was sure to carry his baggage.

    Thus, dozens of Nationalist politicians declared their candidacies for the 1872 nomination. With a real shot at victory, party leadership took great care to present the party’s best side. The convention was held in the recently completed Municipal Coliseum in Chicago, which was itself a direct play by party leadership to sway the Midwest in their favor.

    Stephen Douglas once again declined to seek the nomination, as did John Logan, Andrew Johnson, and a humiliated George McClellan. Thomas Hendricks ran once again, while Senator Thomas F. Bayard of Delaware, Congressman Daniel Sickles of New York, Governor Samuel J. Tilden of New York, and former Governor Joel Parker of New Jersey. Numerous minor candidates were present on the first ballot, while Congressman John T. Hoffman withdrew his name before the convention as the Tammany Hall scandal dragged him down with Boss Tweed.

    The first ballot was essentially a four-way tie, with Bayard holding a slim lead, with Hendricks a close second and Tilden and Sickles tied for third. No one dropped out after the first ballot, and on the second, Tilden experienced a major surge, while Bayard sank into third, behind Hendricks, whose numbers held steady. Tilden’s rise can be attributed to the same Tammany Hall scandal that had destroyed Hoffman’s candidacy, as Tilden had fought political machines throughout his time as Governor (he was first elected in 1868). Bayard’s slump, meanwhile, was due to some delegates being wary of nominating one of the men responsible for the Coinage Act that many blamed for the recession. Sickles, meanwhile, saw much of his support switch to Tilden, and he suspended his campaign.

    However, a deadlock persisted on the next five ballots, with Tilden and Hendricks swapping leads, with Bayard occasionally rising to second place before inevitably sinking back down, mostly bleeding supporters to Hendricks. Joel Parker, minor candidates like Horatio Seymour, and undeclared candidates like John Logan (who was unaware his name was on the ballot) took the rest of the delegates. Sickles stubbornly refused to endorse Tilden, the two having been political rivals (Sickles had tried to deny Tilden renomination for governor in 1870, but his challenge was narrowly fended off). Hendricks remained popular with the Midwest, while Tilden and Bayard fought over east-coast delegates, but this divide was not enough to give Hendricks the nomination, and he and Tilden remained nearly tied.

    By the fifteenth ballot, the situation remained almost unchanged. Tilden held a lead of three delegates over Hendricks, while Bayard stuck it out in the hopes of being a compromise candidate, while Parker tried to extract promises of the Vice Presidency and the others held out, hoping for a cabinet post. With no end in sight, the convention was growing restless. After a still inconclusive sixteenth ballot, John Logan invited Richard Taylor, his old commander and political ally, to address the convention. Taylor hoped to sooth the convention, fearing that violence would break out, and urged calm, telling the delegates that “I know uncertainty well, for I have experienced much of it in my life. There is much uncertainty at this convention, but I would urge you all not to let it get to you. Calm negotiation will win us all a candidate we can proudly support, but intractability and flaring tempers only breed chaos.”

    Taylor’s speech had the intended effect, and the agitated murmuring that had marked recent ballots was absent. Nevertheless, the seventeenth ballot was also deadlocked, with Hendricks gaining a slim lead. Then, on the eighteenth ballot, Daniel Sickles entered Taylor’s name into contention. Taylor himself did not learn of this until balloting had concluded, for he had left the main floor to meet with John A. Logan. Despite not even knowing he was on the ballot, Taylor surged into frontrunner status, as almost every southern delegate defected to him, as well as large portions of the Ohio, Illinois, Maryland, New Jersey, and even New York delegates. Taylor returned before the next ballot was held after learning of his nomination and attempted to dissuade the delegates from nominating him. “I have always served my country in the best way I knew how. But I cannot in good conscience remain a candidate. I have little experience in government. I thank those that support my nomination for the trust they place in me, but I cannot in good conscience remain a candidate.”

    The delegates ignored Taylor’s speech, taking it as yet another sign that he was the best candidate. On the nineteenth ballot, the war hero surged into a sizeable lead, securing the Pennsylvania and Maryland delegations, and making further inroads into Ohio, Indiana, New York, and New Jersey. After seeing that not only was he still a candidate, but that he was the leading contender, Taylor attempted to persuade his delegates to instead support Tilden, but they refused, with one telling him “it is you we want as our nominee.” Seeing the great deal of support for him, Taylor reluctantly agreed to remain a candidate, and addressed the convention a second time, telling them “I am humbled by the confidence placed in my abilities. While I cannot say with certainty that I share this confidence, it appears the delegates will have no other man than me.”

    Hendricks labeled Taylor “opportunistic [and] inexperienced” and refused to suspend his campaign. Meanwhile, Tilden saw that Taylor’s nomination was “an inevitability” and met with Taylor. Tilden offered his delegates to Taylor in exchange for the Vice-Presidential nomination. Taylor accepted the offer, as he admired Tilden’s anti-corruption stance and wanted someone familiar with executive power in his government. On the twentieth ballot, Taylor secured the required two-thirds of the delegates with Tilden’s delegates, but Tilden motioned to make the nomination unanimous, which was adopted. With an officially unanimous nomination, Taylor was now the Nationalist Party’s nominee for President. Despite a bid by Hendricks to become the Vice-Presidential nominee, Tilden received that nomination by a comfortable margin.

    The convention then turned to the platform. A plank calling for the ‘total overhaul and reform of the Republic’s Civil Service system’ was passed, as was one favoring a gold standard and ‘fiscal responsibility’ and one proposing further infrastructure investments. A tax cut was also proposed. More importantly than even civil service reform were the planks devoted to Reconciliation and civil rights. Many Southern delegates had pressed for planks condemning the civil rights acts passed by Sherman, and wanted the platform to expressly support white supremacy, with Francis Preston Blair Jr. wanting it to include the phrase “This is a White Man’s Country, Let White Men Rule”. Taylor intervened against this. Though he had owned slaves before the war, as a Union General, he had commanded several black brigades and had come to greatly respect their “tenacity in battle and their fervent support for the Union”. Even before the Thirteenth Amendment, Taylor had freed his slaves and instead started a sugar mill in New Orleans. Taylor instead persuaded these delegates to accept planks calling for the end of the troop presence in the South, a repeal of the Elections Security Act (which Taylor thought was a gross overreach of the Federal government’s authority), and a broad amnesty for Confederate soldiers and supporters. Thus, with a platform decided, the convention adjourned.

    The Nationalists had their first candidate with a real shot at victory.”

    From “The House of Freedom: A Story of America’s Oldest Party” by Leander Morris
    Published 1987


    “The Freedom Party was in disarray going into 1872. The Panic and ensuing recession had wiped out the party’s popularity, and so most frontrunners declined to be candidates, including Henry Winter Davis, Schuyler Colfax, and Charles Sumner. In their stead ran the lesser-known and/or more infamous candidates, such as Congressman Benjamin “Spoons” Butler of Massachusetts, former Treasury Secretary Salmon P. Chase of Ohio, Senator Oliver P. Morton of Indiana, and Vice President Henry Wilson of Massachusetts, who had entered at the last minute, and only after he was persuaded by his allies.

    Perhaps as an admission of defeat, the convention was held on safe Freedomite ground, in Milwaukee, near where the party was founded in 1854. While the Nationalist Convention was held with a feeling of excitement that permeated the whole of the convention (but was especially palpable when Richard Taylor accepted the nomination), the Freedom Party Convention was gaveled in by James Garfield to a generally defeatist attitude. Those vying to be the standard-bearer were not optimistic about their prospects in November, while one delegate told a reporter that “we don’t need a candidate who can win. None of them can win. What we need someone who will lose by as small a margin as possible.”

    Salmon Chase had the most name recognition, though it was not for good reasons – rather, it was for his role in causing the Gold Panic in 1869, when his actions unwittingly nearly allowed Jay Gould and Jim Fisk to wreck the gold market in a market-cornering scheme. Nevertheless, he enjoyed a strong base of support in the midwestern Freedom Party machines. Of course, the Eastern financiers detested him, while western groups remained opposed to his nomination. President Sherman in particular did not want to see him be nominated, detesting him for his power-hungriness. “He has been so thoroughly corrupted by the holding of positions of moderate power, that I should want never to see the day that he has power over an entire nation.” Others in the party no doubt felt the same.

    Benjamin Butler, a former General who had earned the name of “Spoons” for reportedly looting Confederate silverware from plantations he used as headquarters, emerged as the standard-bearer for western interests. He expressly condemned the Coinage Act, calling it “an affront to the public good” and “a corrupt attack on the farmers and workers of the nation”. Butler enjoyed near-total loyalty from the western delegates and had strong support in several midwestern states. The Eastern financiers, however, hated him more than they distrusted Chase.

    Oliver P. Morton was a Senator from Indiana and former Governor of Indiana. A staunch Radical Freedomite, he was the favorite of President Sherman, Vice-President Wilson, and House Minority Leader (and former Speaker) Schuyler Colfax. As Minority Leader of the Indiana General Assembly, and later Lieutenant Governor, he worked to neutralize the power of the Democratic majority, later working closely with the nascent Nationalist Party to keep Indiana in the war. President Fremont had spoken highly of him on several occasions, and Sherman had gotten to know him as Speaker and as President. He was viewed as competent but a candidate that could be expended on a nearly unwinnable election. This earned him the support of not just those who personally knew him, but of the Party apparatus as a whole.

    On the first ballot, Morton held a comfortable lead, but was a few dozen delegates shy of the nomination. Benjamin Butler was in second, buoyed by his strong western support. Salmon Chase was disappointed by his fourth-place result, behind even Vice President Wilson. On the second ballot, Chase and Wilson both withdrew, Chase refusing to endorse a candidate and Wilson backing Morton. This gave Morton enough support to clinch the nomination, though Chase and Butler blocked a motion to make the nomination unanimous.

    For the Vice-Presidential nomination, Morton asked Henry Wilson to accept. Wilson nearly refused because he wanted to retire, but ultimately decided to accept, reasoning that the Freedomite ticket was likely to lose anyway. Thus, the Freedomite National Convention nominated Wilson for a third term as Vice President and passed a platform that more or less called for more of the same, believing that in an election that was sure to be a defeat, they shouldn’t bother coming up with a comprehensive platform. The convention adjourned, and the dejected delegates went home.”

    From “The Rock of Gibraltar: Richard Taylor’s Presidency” by Mike Grant
    Published 2009


    “The Nationalist Party’s anti-corruption plank, which was a central part of Taylor’s campaign, was lent credence by a scandal that rocked the Freedom Party and the nation. This was the Credit Mobilier scandal, a combination of defrauding the government and influence peddling in Congress by the Union Pacific Railroad. Union Pacific executives created a shell construction company, Credit Mobilier, in order to massively inflate construction costs. Since the US government was footing a large part of the bill for the transcontinental railroad, the Union Pacific executives used Credit Mobilier to bill the government $100 million for railroad construction, when it only cost $50 million in actuality. Then, the Union Pacific used part of their $50 million in ill-gotten gains, as well as over $9 million in steeply discounted stock, to bribe a number of national politicians for favorable regulations, laws, and increased funding.

    The scandal, though it was carried out between 1865 and 1870, was only brought to the public’s attention in 1872 because of a dispute between Oakes Ames, a Congressman that the Union Pacific used to dispense bribes and cheap stock to other Congressmen, and a man named Henry Simpson McComb. McComb leaked letters containing evidence of the scandal to the New York Sun, which published the letters along with further details of financial misconduct and inflated contracts. Speaker Samuel J. Randall immediately announced a Congressional investigation, which was jointly headed by Nationalist Senator George H. Pendleton and Freedomite Congressman James Garfield.

    The Pendleton-Garfield Commission revealed thirteen individuals as involved in the bribery and stock purchasing, of which eleven were Freedomites and two were Nationalists. Of the implicated Freedomites, one was Vice President Henry Wilson, who was also Oliver P. Morton’s running mate. Other important politicians who were implicated were House Minority Leader Schuyler Colfax, who resigned in mid-October after a meeting with President Sherman and New York Senator Roscoe Conkling. Only two Nationalists were named, former Senator James A. Bayard Jr., and Congressman (and 1868 Presidential nominee) John A. Logan. Logan did not resign, unlike Colfax, but did issue a full and public apology, though his ambitions for higher office were destroyed.

    Though Henry Wilson initially denied involvement, in September he gave a long explanation as to why he had purchased stocks, and that he had never personally taken possession of the stocks (having purchased them in his wife’s name) and, after becoming concerned about the transactions, reversed them and ended his involvement. Though the Pendleton-Garfield Commission accepted this answer, and no action was taken, his reputation for honesty was damaged and he, already reluctant about running for Vice President a third time, withdrew from the ticket. The Freedom Party ultimately selected Pennsylvania Senator Andrew G. Curtin to replace him, but the damage was done. Wilson’s presence on the ticket resulted in Morton being seen as tainted by the scandal.

    News of the scandal allowed Taylor to turn the issue of civil service reform into a moral issue. At a campaign event in Illinois, he told the audience that “the character of the American people must be reflected in the character of its government. I do not think that your character is so corrupt and greedy that the politicians implicated are suitable reflections. It is clear that the Freedom Party as it currently exists has too many scoundrels in its ranks to have the public’s confidence to govern. I will build railroads and canals and do it in a fair and transparent manner. My opponents will not.” Taylor called the scandal a “crisis of leadership” and pledged to return to “honest government”.

    Taylor’s running mate, Samuel Tilden, also campaigned, traveling up and down the east coast. The two occasionally appeared in public together, but the rather restrained Tilden gave short, infrequent speeches. His real strength lay in organizing the campaign. While Taylor was a battlefield general, he found that political campaigns were “a confusing affair… strategies change by the hour. It was something wholly unfamiliar to [him]”. Taylor asked Tilden to organize volunteers, newspaper advertisements, and campaign stops. For his part, Taylor made extensive public appearances, published a number of editorials supporting his proposals, and meeting with local officials to garner support. Tilden’s effective numbers game allowed Taylor’s campaign stops to maximize the number of swing voters reaches with the Nationalist Party’s message.”

    From “The House of Freedom: A Story of America’s Oldest Party” by Leander Morris
    Published 1987


    “The Freedom Party’s campaign was forced on the defensive for the entirety of election season. With much of the campaign rhetoric given over to the moral issue of corruption, defense became rather difficult. Morton’s strategy, then, was to downplay the corrupt actions of Colfax or Conkling as a few bad actors, and raised up people like Rutherford B. Hayes, the Secretary of State, or Representative James A. Garfield, as reformist Freedomites.

    The Credit Mobilier scandal was too far-reaching for Morton’s arguments to hold much water. For many Americans, the fact that Freedomites in such leadership positions as the Speaker of the House and the Vice President had engaged in such corrupt practices was deeply worrying and showed that the “rot had spread far deeper than Mr. Morton is letting on”. Though the Pendleton-Garfield Commission had cleared Vice President Wilson of any wrongdoing, his withdrawal from the ticket was seen by many as an admission of guilt, and Andrew G. Curtin did little to attract voters.

    Worse, Morton could not rely on Sherman to help campaign for him, as the President was so unpopular that appearing in person together with him would actually cost Morton supporters.

    […]

    In the end, it was not close. While the Freedom Party was not exactly winning elections in most southern states (thanks to the demographics shifts brought on by the First Great Migration), Richard Taylor swept these states, with his largest margin of victory being Alabama, with 65% of the vote. Freedom Party strongholds like Illinois and Ohio, which had voted for the Freedom Party in every election since 1856 (except 1864, when Lincoln’s Reconciliation Party won Illinois) went to Taylor by narrow margins (Ohio was only called for the Nationalists after a lengthy recount), while, despite Curtin’s presence on the Freedomite ticket, Pennsylvania was won by Taylor with a margin of six percent. With Tilden’s presence on the ticket, Taylor carried New York by a comfortable margin, and New Jersey, New Hampshire and Connecticut narrowly. Morton only won the strongest Freedomite strongholds – Itasca, the New England states (save Connecticut and New Hampshire), Michigan, his home state of Indiana, Mississippi, South Carolina, Florida, Nebraska, Kansas, and Sacramento.

    Nationally, Taylor won the popular vote by seven points, which was almost exactly what Tilden had predicted the winning margin would be, and the Nationalists gained three Senate seats and 17 House seats. Taylor’s promises of clean government, an end to the increasingly unpopular reconstruction, and economic recovery resonated well with the general public. On his inauguration day in 1873, Taylor vowed that “as Government derives its power from the citizenry, so too must the Government reflect the values of the citizenry that entrusted it with that power. It is my sincere intention to govern with honesty and fairness, so that the Government can best reflect the honest, fair character of the American people.”
     
    Top