Abraham Lincoln and the National Debt..?

 the White House circa 1860 (2)

 The White House, Washington D.C. (circa 1860).

1860, ..the U.S. was a lot simpler place then, ..or was it?

 US territory 1860. 1a jpg

 U.S. territory 1860

 Emancipation Proclamation 1a

The Emancipation Proclamation

The Emancipation Proclamation is an executive order issued to the executive agencies of the United States by President Abraham Lincoln on January 1, 1863, during the American Civil War.

It was based on the president’s constitutional authority as commander in chief of the armed forces; (it was not a law passed by Congress.)

It proclaimed all slaves in Confederate territory to be forever free; that is, it ordered the Army to treat as free men the slaves in ten states that were still in rebellion, which applied to 3.1 million of the 4 million slaves in the U.S.

The Proclamation immediately resulted in the freeing of 50,000 slaves, with nearly all the rest (of the 3.1 million) actively freed as Union armies advanced.

The Proclamation did not compensate the owners, (nor did it outlaw slavery,) ..and it did not make the “ex-slaves” (called freedmen) ..citizens.

It made the elimination of slavery an explicit goal of the war, as well as reuniting the Union.(Source Wikipedia).

 the nation divided

 A Nation divided..

In the 20 months that I’ve been writing this blog, I have never claimed to be the sharpest pencil in the drawer, ..albeit I can assert with confidence and certainty, ..that Abraham Lincoln, (our revered 16th president) ..did not reunite America to have a wimpy, idealistic upstart from Chicago, with no “trustworthy documentation” ..to prove that he even exists, ..destroy what thousands of men died for between New York and Atlanta.

During the Civil War Lincoln declined financial aid from the Bank of England, and/or, the Rothschilds.

Question: So how did Lincoln finance the Civil War?

Economic Prelude to the War

The Union economy expanded in the early 1860s – but that expansion was not an obvious or necessary outcome of southern secession and the subsequent Civil War. Abraham Lincoln’s election as president greatly upset the financial markets in New York. The prospect of secession spooked both merchants and financiers whose business was closely linked to the South. In November 1860, Harpers’ Weekly reported: “Within the past fortnight a panic has prevailed in Wall Street, and stocks of all descriptions have declined from ten to fifteen per cent. Such an event, occurring simultaneously with the most bountiful crops and the most remarkable development of material wealth this country has ever known, has naturally puzzled the public, and given rise to much surprise and conjecture.”1 The New York financial community had opposed Lincoln’s election. “Merchants were apprehensive that it might result in cancellation of orders from the South, and bankers expected the repudiation of Southern debts amounting to over $200,000,000, if the South should secede,” wrote historian Richard Hofstadter. “The opposition press made a concerted effort to frighten business and financial interests. Merchants contributed so lavishly to the Fusion ticket in New York that Lincoln was disturbed.”2

 Salmon Chase and Union Finance

President Abraham Lincoln took office on March 4, 1861. New Treasury Secretary Salmon P. Chase, a former Ohio senator and governor, faced a grim situation of barren coffers and reluctant lenders for which the prim, proper, and pompous Chase was not well prepared. Chase had been a lawyer and politician, not a financier or merchant. His primary qualification for office was his personal rectitude. Paul Studenski and Herman Edward Krooss noted that  his personality was…peculiarly unsuited to the needs of his office. Prone to overestimate his prospects and without a sense of humor, he was also suspicious, dogmatic, and pompous. As a result, he did not understand that, in order to finance the war successfully, it was often necessary to compromise.” Chase did also not understand that the precedents of Jacksonian fiscal policies were not a sufficient guide to the financial difficulties that the country faced. He underestimated the duration, the cost and the severity of the war. But then, Chase was not alone. Almost everyone – North and South – did so too.

 1861 – Borrowing

The onset of the war temporarily strengthened the northern bond market. Chase wrote Lincoln in early April 1861: “The bids for the $8.000.000 loan exceed 33.000.000 — the average advance from Mr Dix’s loan is between 3% & 4%. The highest bid – [illegible] are $1000 though is par – near 3.000.000 at 94%; and I hardly think of taking any at a lower rate. I am offered 1/8% premium on $2.000.000 Treasy. notes. All this shows decided improvement in finances & will gratify you.” Treasury official Lucius Chittenden, however, recalled Chase’s emotional response to the disappointing opening of bids for government securities early in the war: “There is money enough in the loyal North and West to pay for suppressing this wicked rebellion. The people are willing to loan it to their Government. If we cannot find the way to their hearts, we should resign and give place to those who can. I am going to the people! If there is a farmer at the country cross-roads who has ten dollars which he is willing to loan to the Government, he shall be furnished with a Treasury obligation for it, without commission or other expense. When we have opened the way directly to the people and they fail to respond to the calls of their Government in the stress of civil war, we may begin to despair of the republic!” Chittenden added: “With these words ringing in our ears, the conference ended.” Chase was a better political leader than he was a financial manager. The former Ohio governor was a patriot and emphasized patriotism in managing the country’s finance and selling its financial instruments. Chittenden contended that Chase’s “confidence in the people was absolutely supreme; it never for a moment wavered. He saw himself, and he could make others, even an assembly of bank presidents, see that their possessions were worthless unless the Treasury, a synonym in his mind for the Government, was sustained. But he addressed no such selfish arguments to the masses. They knew that it was their duty to support the Government with their lives- much more with their money. The plan of dealing with them directly was the strongest that could possibly have been devised.”

 The Cooke System

Banker Jay Cooke quickly became indispensable to Chase during 1861. He had the banking knowledge that Chase lacked. Lincoln scholar Brian McGinty noted that Cooke “knew when and where money was available, what interest rates lenders would demand, and what maturities would be most readily marketable.” The 39-year-old Cooke had been a venture capitalist before opening his firm, Jay Cooke & Co., at the beginning of 1861. In his memoirs, Cooke wrote that he “concluded to re-enter the banking business, not with any thought, however, of the vastness of the work before me, but at the suggestion of my brother-in-law, William G. Moorhead, whose son [William E. C. Moorhead] and my own son [Jay Cooke, Jr.] were rapidly reaching an age when some business plans must be made for them, and we thought to bring them up as bankers.”118 Cooke opened his new business on January 1, 1861.

 1862 – Greenback Legislation

The Union’s need for government resources was growing and incessant. The finances of the government continued to be tight for virtually the entire war. They were particularly tight in January 1862 after both the banks and the government cease redeeming notes in specie. A stalled army did not inspire the confidence of bankers. Historian James M. McPherson wrote that “for a time in the winter of 1861-62, fiscal problems threatened to overwhelm the Union cause.”Lincoln complained to General Montgomery C. Meigs: “General, what shall I do? The people are impatient; Chase has no money, and he tells me he can raise no more; the General of the Army has typhoid fever. The bottom is out of the tub. What shall I do?” (Source,abrahamlincolnclassroom.org)

Solution, Lincoln created the greenback dollar.

 greenback dollar 1862 - 1a

 Abraham Lincoln’s greenback dollar – 1862

Being creative is not Barack Obama’s long suit, or his short suit, or anywhere in his repertoire. Barack Obama’s myopic view of the world (sadly) does not extend beyond his agenda to spend America into bankruptcy.

 Obama Money

According to Webster: my·op“ic, (in context) Lack of discernment or long-range perspective in thinking or planning.

For those of you who voted for Barack Obama, take all the time you need to think about it, ..or you can simply wait until the door closes.

What door you ask? Simple, America’s door to opportunity.

On the morning of November 19, 1863, Abraham Lincoln concluded his address at Gettysburg with these words; …

 Abraham Lincoln Memorial up clo

“..a government, ..of the people, ..by the people, ..for the people, ..shall not perish from the earth.”

A conviction reduced to smoke by the signing of the Federal Reserve act of 1913, by then President Woodrow Wilson.

Were Lincoln alive today, and standing before the citizens of America, he would be obliged to say; “A government, ..of the people, ..by the people, ..for the Rothschilds.

Think about it, ..and think about it hard.


Crusader Rabbit…

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