Sunday, May 20, 2018

THE NEW NATION THE YANKS




      detroit after civil war








A new nation has appeared within the United States since the Civil War, but it has been only accidentally connected with that catastrophe. The Constitution emerged from the confusion of strife and reconstruction substantially unchanged, but the economic development of the United States in the sixties and seventies gave birth to a society that was, by 1885, already national in its activities and necessities. In many ways the history of the United States since the Civil War has to do with the struggle between this national fact and the old legal system that was based upon state autonomy and federalism; and the future depends upon the discovery of a means to readjust the mechanics of government, as well as its content, to the needs of life. This book attempts to narrate the facts of the last half-century and to show them in their relations to the larger truths of national development.

THE CIVIL WAR

the[Pg 1] military successes of the United States in its Civil War maintained the Union, but entailed readjustments in politics, finance, and business that shifted the direction of public affairs for many years. In the eyes of contemporaries these changes were obscured by the vivid scenes of the battlefield, whose intense impressions were not forgotten for a generation. It seemed as though the war were everything, as though the Republican party had preserved the nation, as though the nation itself had arisen with new plumage from the stress and struggle of its crisis. The realities of history, however, which are ever different from the facts seen by the participant, are in this period further from the tradition of the survivor than in any other stage of the development of the United States. As the Civil War is viewed from the years that followed it, the actualities that must be faced are the facts that the dominant party saved neither the nation nor itself except by changing its identity; that economic and industrial progress continued through the war with unabated speed, and that out of the needs of a new economic life arose the new nation


The[Pg 2] Republican party, whose older spokesmen had been trained as Whigs or Democrats, had by 1861 seasoned its younger leaders in two national campaigns. It had lost the first flush of the new enthusiasm which gave it birth as a party opposed to the extension of slavery. The signs of the times had been so clear between 1856 and 1860 that many politicians had turned their coats less from a moral principle than from a desire to win. When Lincoln took up the organization of his Administration, these clamored for their rewards. There was nothing in the political ethics of the sixties that discountenanced the use of the spoils of office, and Lincoln himself, though he resented the drain of office-seeking upon his time, appears not to have seen that the spoils system was at variance with the fundamentals of good government.


The Thirty-seventh Congress (1861-63) had been[Pg 6] more ready to borrow than to tax. In all its experience until 1861 the United States had met no crisis in which large revenues had been required. In the thirty preceding years its total annual receipts had ranged from $20,000,000 to $81,000,000, while in the fiscal year in which the war began the total had reached $83,000,000, of which $41,000,000 were loans rather than revenue. Since the panic of 1857 the Treasury had faced a deficit at the end of each year, and had been compelled not only to spend its accumulated surplus on current needs, but to borrow heavily. The tariff duties, collected at the custom-houses, were, as they always had been, the mainstay of the revenue. But these had not met the needs of the three lean years before the war.
Had there been no war, the disordered finances of the United States might, in 1861, have called for corrective measures and new taxes, and these could not have become effective before 1862 or 1863. As it was, loans were resorted to for first-aid. In 1862 they alone were more than six times as great as the total receipts of 1861; in 1865 they were nearly three times as great as in 1862. Taxes were authorized more reluctantly than loans, they became profitable more slowly, and did not, until the last year of war, reveal the fiscal capacities of the United States
The favorite national tax of the United States had always been the tariff. Supplemented by miscellaneous items which included no internal revenue after 1849, and no direct tax after 1839, it carried most of the financial burdens. Whether parties preferred[Pg 7] it high or low, or levied it for protection or for revenue, they had continued to cherish it as a fiscal device, and had acquired no experience with alternate sources of supply. Like the army of the United States, which in time of war had to break in its volunteer levies before it could win victories, the Treasury and Congress had to learn how to tax before they could bring the taxable resources of the United States to supplement the loans.



THE FORD COMPANY


AMERICAN CAR AFTER THE CIVIL WAR  THE FORD

The tariff was revised and increased several times between 1861 and 1865, and yielded its greatest return, $102,000,000, in 1864. The result was due to both the swelling volume of imports and the higher rates. Like all panics, that of 1857 had lessened the buying capacity of the American people. In hard times luxuries were sacrificed and treasury receipts were thereby greatly curtailed. A return to normal conditions of business would have been visible by 1861 had not war obscured it. Steadily through the war a prosperous North and West bought more foreign goods regardless of the price.





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