Showing posts with label Financing The War. Show all posts
Showing posts with label Financing The War. Show all posts

Sunday, May 3, 2015

John M. Forbes to William Cullen Bryant, January 27, 1862

Boston, January 27,1862.

I have your note. I knew you always as the champion of sound finance. Your article sets forth the effect on the poor; others have been solely looking to its injury to the rich.  . . . In great haste, yours truly.

SOURCE: Sarah Forbes Hughes, Letters and Recollections of John Murray Forbes, Volume 1, p. 281-2

Sunday, April 19, 2015

John M. Forbes to Senator William P. Fessenden, February 13, 1862

Willard's Hotel, Washington,
February 13, 1862.

Mr. Gray has gone home not very well and rather discouraged. I gave him your message. . . .

Suppose the stain of bad faith hurts the eight hundred and fifty millions of bonds five per cent. by discrediting it at home, and keeping out of our reach the great reservoirs of European capital (which in my opinion is a very small estimate of the pecuniary damage), the nation loses by the operation five per cent. on eight hundred and fifty millions, say $42,500,000.

But this low and mean view of the case only discloses a small part of its mischief. We shall have the stain and irritation of repudiation of the many millions due to foreigners which we promised in specie and are to pay in paper, and if we are not successful during the few weeks for which time we purchase ease by this expedient, we may in consequence of it find such obstacles to our next financial move (beyond the one hundred and fifty millions) that the legal tender clause may terminate the war, a consummation which some of the bankers and others advocating it will not weep for!

I must say I shall consider it our financial Bull Run.

With our strong constitution we may get over this astounding quackery, but it is a trial I hope we may be spared.

On the other hand with Napoleon holding back from interference, with England reacting in our favor, with the navy pushing the war into the interior, and with Stanton waking up the army, and putting out a declaration of Independence of the Satanic Press, it only needs good Anglo-Saxon pluck in this the very pinch of the game of finance, to put us on firm ground.

The Senate bill, with the legal tender struck out, and with a good tax bill, will do this as surely as there is a sun in heaven.

I hope to get off this afternoon, having done my best against the monsters.

SOURCE: Sarah Forbes Hughes, Letters and Recollections of John Murray Forbes, Volume 1, p. 279-81

Sunday, February 1, 2015

John M. Forbes to Nassau W. Senior, September 30, 1861

Naushon Island, September 30,1861.

Dear Mr. Senior, — Your note from the Chateau de Tocqueville reached me a few days since. It must have been a most agreeable reunion there.

We here feel more and more each day the miracle of M. de Tocqueville's prophetic vision of our history. It seems almost like clairvoyance! Our Channing's prevoyance of the results of our Texas land thefts is almost as strange. Such men of genius may well be called seers.

I am sorry that you still class me with the crowd who always seek to forget their own sins in abusing their neighbors. The fact is, all my prepossessions were in favor of England, and I had watched with the greatest satisfaction the subsidence of the old animosities, growing out of the two wars, and the growth of that good fooling which ought to animate the two nations who are, or might be, the bulwark of free institutions against the despotisms of the Old World.

When we cast off the nightmare despotism, which had so long ruled us, the slave oligarchy, which sympathized with Russia because of serfdom, and dismissed your minister to show their homage to the Czar, and which refused you a limited right of search, because it favored the slave trade; in fine, when at last we placed ourselves right on the question of slavery, which has always been a reproach from you to us, I thought the entente cordiale was complete. I did not look for material aid nor want it, but only such forbearance of countenance towards our Sepoys" as would help to discourage them, and would bring our two nations still more into harmony.

Perhaps I feel the disappointment more bitterly than the mob does, because my hope and prejudices were strongly for a warm English alliance— now, I fear, deferred another twenty years. Your "Times " I expected nothing better from than we have had in its cold sneers at the breaking of our bubble of democracy, but from your ministry I did look for something better than a proclamation of strict neutrality, putting us upon precisely the same footing with our “Sepoys,” forbidding either party to bring prizes into your ports, prohibiting your subjects aiding either; and this, too, issued just as our new minister was arriving, thus giving him no opportunity to confer upon mutual interests; for I contend that it is our mutual interests that have been endangered, not ours alone.

I beg your Sepoys’ pardon for naming them with ours. They at least had foreign conquerors, and a hated religion to conspire against, and yet we watched your Indian battles with a brother's eye, and canonized your Havelocks, Hodsons, and other martyrs, as if they had been our own. Even our press, loose as it is, uttered no sound of exultation at what seemed at one time to be the downfall of your Indian empire.

Had your Sepoys brought a prize into our California ports, we should have known only the British owner, and restored her. Once more I beg your Sepoys' pardon. They were not guilty of the deep crime against their nationality and the principles of government which marks our more barbarous rebels!

One word about the Morrill tariff. It is a labored, clumsy production, and it will fall by its own weight. Some of its blunders have been partially corrected; but you mistake the intention of those who passed it, or at least of the majority of them.

Its aim was to substitute the steadiness of specific duties for the vibrating, cheating system of ad valorem. Certain high duties were doubtless smuggled in under guise of specifics, and the extreme difficulty of so framing our specific duties that our poorer classes shall not pay the same duties, per yard or per pound, on their cheap cloth or tea, will probably cause a repeal of the tariff. Yet I think British experience and opinion favor the principle of specific rather than ad valorem duties. One tends to cheat the people who buy the poorest qualities, the other tends to enormous frauds against government and profits by false swearing, and encourages the use of poor, showy goods, as against the more substantial ones which come in under specifics.

You are a little more encouraging as to results than you were, but I still think you do not properly appreciate the fact that we are not fighting to subjugate the South, but to put down a small class who have conspired against the people, and who are a thousand times worse enemies of the mass of the people at the South than the North.

The only pinch is our finances. Cannot you help us upon the text of the cutting within, if you find that sound? Our moneyed men continue to take their tone very much from England, and confident views of financial success coming from your side have great weight. . . .

Very truly yours,
J. M. Forbes.

SOURCE: Sarah Forbes Hughes, Letters and Recollections of John Murray Forbes, Volume 1, p. 247-50

Tuesday, August 20, 2013

Senator John Sherman to Major General William T. Sherman, April 17, 1864

WASHINGTON, D.C., April 17,1864.

My Dear Brother:

. . . Our finances are bubbling up and down in that feverish state where a panic might easily come. Chase is a man of ability, but in recent measures he has failed. I have been generally the laboring one in the Senate, on these measures, though very often my judgment has been against them. I have felt like a subordinate officer, who, while he does not approve the plan of operations, yet deems it his duty fairly to execute his part of it rather than by fault-finding to impair it. The war is daily driving us to extraordinary measures, and our form of Government is not unit enough to carry them out. We are embarrassed by state banks, state laws, and local issues and interests. The other day a determined effort was made in New York to run gold up to 200, but was promptly met by a free sale by the Government of gold and exchange, and the movement failed. It was aided by this very bad news from Fort Pillow, not so bad from the loss of men, but from the question of retaliation raised by the massacre of negro troops. We all feel that we must either disband negro troops or protect them. It is fearful to think about the measures that may be necessary, but what else can we do? An investigation will be made by the Secretary of War and by Congress, and if the rebels are determined to massacre prisoners, then a new and terrible stage of this war will be commenced. . . .

Affectionately yours,
JOHN SHERMAN.

SOURCE: Rachel Sherman Thorndike, Editor, The Sherman Letters: Correspondence Between General and Senator Sherman from 1837 to 1891, p. 233-4