* ' MOI A PERIODICAL THE UNIVERSITY OF ILLINOIS LIBRARY 305 iL V~U,cob,2 minium -^ Sit' was withdrawn on or before Latest Date stamped below. Theft, mutilation, and underlining of books are reasons for disciplinary aet.on and may Result in dismissal from the Umvers.ty. f f / f rmiif UNIVERSITY OF ILLINOIS STUDIES' IN THE SOCIAL SCIENCES Vol. XI March-June, 1923 Nos. i and 2 TH UltARV or THC 23 1924 IUINOIS BOARD OF EDITORS ERNEST L. BOGART JOHN A. FAIRLIE LAURENCE M. LARSON PUBLISHED BY THE UNIVERSITY OF ILLINOIS UNDER THE AUSPICES OF THE GRADUATE SCHOOL URBANA, ILLINOIS BY THE UNIVERSITY OF ILLINOIS COPYRIGHT, 1924 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 ROBERT ROYAL RUSSEL Instructor in History Western State Normal School Kalamazoo, Michigan 305 IL All cow* fc^7? f 1 1' To My Father and Mother TABLE OF CONTENTS CHAPTER PAGE Preface 9 Introduction: The Bases of Southern Sectionalism. ... n I. Agitation in Behalf of Direct Trade with Europe, 1837-1839 15 II. Movement for the Diversification of Industry, 1840-1852 33 III. Economic Aspects of the Southern Movement, 1844-1852 65 IV. Plans for Establishing Direct Trade with Europe, 1847-1860 93 V. The Southern Commercial Convention, 1852-1859 123 VI. Attitude toward Protective Legislation, Federal, State, and Local, 1840-1860 151 VII. Economic Aspects of the Disunion Movement, 1852-1860 179 VIII. Factors which Tended to Allay Discontent with the South's Economic System, 1850-1860 199 IX. Economic Aspects of the Secession of the Cotton States, 1860-1861 231 X. Early Economic Policies of the Confederate States, 1861-1862 255 XI. Economic Considerations Affecting the Decision of the Border States 273 XI. Summary and Conclusions 289 Appendix 295 Bibliography 299 PREFACE The object of this monograph is to attempt to evaluate some of the causes for the secession of our Southern states which, to me, seem generally to have been underestimated. Lack of time has prevented the utilization of much available newspaper, pamphlet, t and manuscript material of considerable value; but great confi- dence is felt that the evidence is typical, if not exhaustive. The work deals with matters which even today in a measure arouse the passions or prejudices of men; the greatest effort has been made, therefore, to preserve a detached point of view. A better contemporary understanding of the economic relations of the sec- tions before 1861 might have moderated the bitterness of the sectional controversy; a better understanding of them even now would soften its memories. The subject of this study was suggested to me while I was preparing a master's thesis on the subject "Early Projects for a Railroad to the Pacific" under the direction of Professor F. H. Hodder, of the University of Kansas. The preparation of the study was begun in 1916 under the supervision of Professors E. B. Greene and A. C. Cole and completed under the supervision of Professor T. C. Pease, of the University of Illinois. I am in- debted to each of these men for very valuable criticisms and sug- gestions. I have used the works of many men who have written on related subjects, and am under greater obligations to them than citations in the footnotes or bibliography can indicate. The materials used in the preparation of this monograph were found, with few exceptions, either in the Library of the University of Illinois, the Library of Congress, or the Library of the Univer- sity of Chicago. To the officials and staffs of these institutions, I am grateful for much assistance and many courtesies. ROBERT R. RUSSEL. INTRODUCTION THE BASES OF SOUTHERN SECTIONALISM The most significant fact of American history from about 1820 to 1875, at least, was sectionalism. The section which was at all times most clearly defined was the South. The term South, how- ever, did not have the same connotation at all times and to all men. Until about 1845 the term South was commonly applied only to the South Atlantic states. The states of the lower Missis- sippi valley were gradually brought under the term as their economic and social organization and general conditions approx- imated those in the old South and differentiated from those of the states of the upper part of the valley, for Southern sectionalism had bases in several distinctive features besides latitude. Foremost of these was the existence of slavery. For reasons chiefly geographical, slavery had never flourished in colonial days above Mason and Dixon's Line as it had below it, and the insti- tution had been abolished there during or shortly after the Revo- lutionary War. Into the Old Northwest, slavery had not been extended; while into Kentucky and Missouri and the region to the south it had been carried in the same form as in the South At- lantic states. To be sure, the slave population was not evenly dis- tributed throughout the South. The great majority of the slaves were concentrated in the so-called black belts, which corres- ponded roughly to the areas best adapted to the cultivation of cotton, tobacco, sugar cane, rice, and hemp, and the concentra- tion became more pronounced as the Civil War approached. Out- side the black belts the South was upon an essentially free-labor basis. Within the black belts the plantation predominated over the farm; outside, the farm prevailed. But the slaveholding planters were the dominant element in Southern society, and the people of the farming districts had interest in slavery in that they found markets for their surplus products chiefly in the planting regions. The institution of slavery came to be regarded as abso- lutely essential to Southern prosperity. Consequently Southern men defended it as right, shaped their political policies to protect it and secure its extension, and demanded that attacks upon it cease. 12 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [l2 There was basis for sectionalism, also, in divergent economic in- terests and conditions. To what extent the divergence was due to geography, to what extent due to other factors, including social organization, it is not necessary here to inquire. The Southern states, however, were engaged largely in the production of a few great staples cotton, tobacco, and sugar not produced in other states of the Union. Of these staples only a small proportion was consumed at home; much the greater part was exported either to the North or to Europe. The portion exported abroad constituted considerably more than half the nation's total exports. Manu- facturing and mining had made, and were making during the period under survey, little progress in the South compared with the same industries in other sections; the exports of the South were exchanged in part for agricultural products of the West but chiefly for manufactured goods of the East or Europe. The ocean commerce of the South, whether coastwise or foreign, was carried almost altogether in Northern or European vessels; foreign goods for Southern consumption came largely by way of Northern ports. Only a small percentage of the Southern population was urban; the cities and towns of the section were few and small compared with those of the East or even those of the growing Northwest. The banking capital of the country was largely con- centrated in the East; the South was not financially independent. Divergent economic interests of the sections led to the advocacy of different policies, on the part of the Federal government, as re- gards tariff, taxation, navigation laws, and the amount and ob- jects of government expenditures. The disparity of the sections in industry and commerce was to many Southerners an evidence of lack of prosperity in the South commensurate with that of the North, and, consequently, was a cause of dissatisfaction, and was galling to Southern pride. The causes of Southern "decline" were sought for; it was variously attributed to geography and climate, qualities of the people, misdirection of private enterprise, mistaken policies of the state and local governments, and the un- equal operation of the Federal government, but not, generally, to slavery. Remedies were proposed, corresponding roughly to the causes, as analyzed. Other bases for sectionalism were of much less importance. Be- cause of early conditions of settlement, and especially because later immigration was mostly into the non-slaveholding states, 13] INTRODUCTION 13 there were slight differences in the racial types of the sections. The sparsity of population and the social organization in the South were accountable for backwardness in general education and cultural development. Early conditions of settlement, agri- cultural pursuits, slavery and the plantation system, and sparsity of population largely explain the variation from other sections in political ideals and methods. It is the purpose of this study to attempt to discover to what extent Southern sectionalism had its basis in divergent economic interests and conditions. The study is primarily a study of public opinion. It will require an examination of the opinions of South- ern men as to the divergence of economic interests and the extent of the disparity of economic development in the sections, the causes of such disparity, and the proper remedies therefor. Actual economic conditions and changes will be described and explained only in so far as such description and explanation are essential to an understanding of Southern public opinion. It is hoped, how- ever, that incidentally some additional light may be thrown upon the economic status of the ante-bellum South, and that some con- clusions may be drawn as to the justification for Southern discon- tent. Frequent references will of necessity be made to the sec- tional quarrel over slavery, and the attempt will be made to main- tain proper proportion between the minor aspects of sectional- ism herein treated and the major issue of the sectional struggle. In seeking to analyze Southern opinion relative to the matters mentioned above, several movements in behalf of the economic regeneration of the South will be described, and the accompany- ing discussion examined. Evidence of economic discontent can be found in the discussion of some of the outstanding political ques- tions of the day, and such bodies of discussion will, therefore, be analyzed. In the years 1837-1839, a number of direct trade conven- tions held in the South Atlantic states gave earnest consideration to direct trade with Europe as a remedy for Southern decline. During the 18405, especially the latter half of the decade, there was much discussion of the practicability and desirability of de- veloping manufactures, especially cotton manufactures. The political crisis of the years 1847-1852 furnished the occasion for considerable consideration of the economic relations of the sec- tions. During the 18503, direct trade with Europe was almost constantly a subject before the public. Between 1852 and 1859, 14 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [14 a series of Southern commercial conventions, whose original ob- ject was to devise measures for effecting the economic regenera- tion of the section, met in various cities of the South. The tariff question was not dead during the period studied, and during the 18503 policies of state and local protection of industry were pro- posed and discussed. The agitation of the late fifties in behalf of secession, as well as the movement for the revival of the foreign slave trade of the same period, gave evidence of discontent with the economic position of the South. Finally, every phase of South- ern sectionalism was brought out by the actual dissolution of the Union and the necessity of inaugurating Confederate government- al policies. Time and the scope of this work have not permitted adequate consideration of the sectional aspects of two important problems of the ante-bellum South, namely, the building of rail- roads, especially into the Northwest and to the Pacific, and the es- tablishment of a satisfactory banking and credit system. 1 It is not believed that the omissions will vitiate the conclusions reached in any material degree. The period covered by this study has been rather arbitrarily limited. "'Early Projects for a Pacific Railroad" was the subject of an unpublished master's thesis of the author. CHAPTER I AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE, 1837-1839 In colonial days the exports and imports of the Southern col- onies compared very favorably in amount with those of the North- ern; but shortly after independence from Great Britain was achieved, it became apparent that the importing business of the nation was being concentrated in Northern ports. As the years went by the concentration became more and more pronounced. While the exports of the staple producing states grew at a phe- nomenal rate, the value of the imports into Southern ports re- mained almost stationary or grew very slowly. This was particu- larly true in the case of the Atlantic ports. In the case of New Orleans, for long almost the sole outlet for the commerce of the rapidly filling Mississippi valley, there was early in the last cen- tufy^phenomenal increase in both exports and imports; but after about 1835 the latter increased very slowly, while the former con- tinued to grow at the same remarkable rate. Prior to the Civil War the imports of the Northern states greatly exceeded their ex- ports. In the Southern states the reverse was the case. A com- parison of the exports from all Southern ports with those from all Northern ports shows that after about 1830 the former always exceeded, and sometimes greatly exceeded, the latter. The im- ports of the Southern ports, however, were only a fraction of the imports of Northern ports, and became proportionally less as the years went by. 1 If the growing superiority of the North in popu- lation be remembered, and the comparison be made on the basis of population, the disparity is still striking. It indicates that either the people of the South did not consume their proportionate share of the nation's imports, or that Northern merchants imported largely on Southern account, or both. A study of the growth of population of Northern and Southern seaports likewise reveals a growing disparity in favor of the former. 2 The ante-bellum South had no large and growing ports except New Orleans and Baltimore, the latter of which was on the line between the two sections. ^ee Appendix, Table I. 2 See Appendix, Table II. [15] l6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [l6 The available statistics of the shipping built or owned in the two sections again reveals a disparity in favor of the North as great or greater than that in the value of imports or the popula- tion of the seaports. If the comparison be limited to vessels en- gaged in the foreign trade, it is even more to the advantage of the North. 3 These facts would seem to indicate that the foreign commerce of the Southern states was carried largely in Northern or foreign vessels, and that the coasting trade of the South, if large, must have been conducted largely in Northern vessels. The comparative growth of Northern and Southern seaports, the tendency to concentration of the importing business of the United States in Northern cities, especially New York, and the disparity between the shipping industries of the two sections, in short the "commercial dependence" of the South upon the North, were matters which received considerable attention in the ante- bellum South, not only from citizens of the seaports themselves but from the section as a whole. Southern men quite generally looked upon commercial dependence as an evidence of the failure of the South to prosper as it should. They gave consideration to the relation of commercial dependence to the comparatively slow accumulation of mobile capital in the South and to the inadequacy of credit facilities, because of which they were handicapped in their efforts to construct internal improvements and to develop the varied resources of the section. They canvassed commercial dependence as a cause for the slower increase of population in the South than in the North a matter of much concern because of its bearing upon the sectional struggle over slavery. The causes of commercial dependence were sought, therefore, and efforts were made to devise and apply remedies. The whole subject was first thoroughly discussed, and the first efforts made to effect a revolution in the manner of conducting Southern commerce, by a number of direct trade conventions which met in Georgia, South Carolina, and Virginia in 1837, 1838, and 1839. The direct trade convention originated in Georgia. While the financial crash of 1837 deranged the currency and the exchange and credit operations of the country, it seems not to have affected the old South as disastrously at first as it did other sections of "See Appendix, Table III. 17] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE I"] the Union.* It was seized upon as affording a good opportunity for attempting to effect the establishment of direct trade and a change in the method of marketing cotton. With these objects in view, William Bearing and other gentlemen, of Athens, issued a call for a convention to meet in Augusta in October, 183 7. The call stated that a crisis had arrived in the commercial affairs of the South and Southwest, "the most favorable that has occurred since the formation of the American government, to attempt a new organization of our commercial relations with Europe." 6 The first Augusta convention was followed in April and October, 1838, by a second and a third and, in April, 1839, by a fourth, in Char- leston. Each of this series of conventions was composed of from one hundred to two hundred delegates, elected by local meetings. The great majority in each case was from Georgia and South Caro- lina, but there were scattering representatives from North Caro- lina, Tennessee, Alabama, and Florida Territory, and an attempt was made to enlist as many Southern states as possible. Although the state rights, anti-tariff men gave tone to the proceedings, the conventions were bi-partisan in composition; they were not got up for partisan purposes, and party politics played a minor part in their deliberations. Among the delegates were bankers, merch- ants, and planters, as well as men active in politics. The lists of delegates included such well known names as Robert Y. Hayne, A. P. Hayne, George McDuffie, James Hamilton, Ker Boyce, James Gadsden, Colonel Blanding, F. H. Elmore, H. S. Legare, J. H. Hammond, J. E. and J. A. Calhoun, Chancellor Harper, and C. G. Memminger, of South Carolina, Thomas Butler King, A. H. Stephens, George W. Crawford, J. M. Berrien, G. B. Lamar, Judge A. B. Longstreet, and Joseph H. Lumpkin, of Georgia, A. J. Pickett, of Alabama, and Spencer Jarnaghin, of Tennessee. John C. Calhoun was not present in any of these conventions, but their purposes met with his approval. 7 The presence and active partici- pation of such men are sufficient to indicate the deep interest in the 'Charleston Courier, Oct. 7, 1837. *Niles' Register, LV, 43, 189. The delegates of the third Augusta convention presented William Dearing with a silver cup in recognition of his part in inaugu- rating the direct trade conventions. "Charleston Courier, Aug. 14, 1837. 'Calhoun to Sidney Breese, July 27, 1839, Calhoun Correspondence. l8 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [l8 objects of the conventions. Numerous local meetings and the ac- companying press discussion give testimony to the same effect. In addition to the debates and resolutions and the newspaper com- ments, the views, objects, and plans of the conventions were set forth in several quite able addresses and reports. The report from the committee of twenty-one of the first convention was read by George McDuffie, chairman. 8 He was made chairman of a com- mittee to address the people of the South and Southwest upon the objects of the convention, and wrote the address. 9 At the second convention the report of the general committee was read by Robert Y. Hayne, chairman, and a committee, of which A. B. Longstreet was appointed chairman, was instructed to prepare an address to the people. 10 At the Charleston meeting, Robert Y. Hayne read a report upon direct trade, which he had prepared, and which was adopted by the convention; 11 F. H. Elmore read a report from another committee, composed chiefly of merchants from interior towns. 12 Three delegates from Norfolk, Virginia, attended the second Augusta convention and took a prominent part in its proceedings. As a result of growing interest, a direct trade convention was called to meet in Richmond in June, 1838. This meeting was fol- lowed by another in Norfolk in November. Besides these two large conventions there were a number of more local gatherings which discussed the same subjects. The great majority of the delegates at Richmond and Norfolk were from Virginia, but sev- eral came from North Carolina. These gatherings were bi-par- tisan in composition, as were those in Georgia and South Caro- lina, but they did not succeed so well in keeping partisan politics out of the proceedings. Among the delegates were such prom- inent men as John S. Millson, J. M. Botts, James Caskie, Francis Mallory, Edmund Ruffin, Myer Myers, and W. C. Flournoy. At Norfolk, John Tyler presided. These conventions, too, left sev- *CharIeston Courier, Oct. 24, 1837. DeBow's Review, IV, 208 ff. "Report is in Savannah Daily Republican, April 6, 9, 19, 1838. The ad- dress is in the Charleston Mercury, Aug. n, 1838; DeBow' s Review, XIII, 477- 93; N iles' Register, LV, 40 f. "DeBow, Industrial Resources of the South and West, III, 92-111. "DeBow's Review, IV, 493-502; DeBow, Industrial Resources, etc., Ill, m- 116. 19] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE 19 eral ably written reports, notably, the report of the committee on commerce of the Richmond convention, 13 a report prepared and submitted to the same convention by Francis Mallory but with- drawn because of the opposition it encountered, 14 and the report of the general committee of the Norfolk convention, read by John S. Millson. 15 There was substantial agreement in all of the conventions in regard to the manner in which Southern commerce was con- ducted, the evils attendant thereon, and the benefits to follow the establishment of direct trade with Europe. The staple growing states were described as being in a "state of commercial depen- dence, scarcely less reproachful to their industry and enterprise than it is incompatible with their substantial prosperity." 16 What would be more natural than that those who furnished the nation's exports should also receive its imports? Yet, while the South fur- nished two-thirds of the exports, she received directly only one- tenth of the imports of the United States. Francis Mallory esti- mated that nine-tenths of the exports went directly to Europe, while five-sevenths of the imports from abroad came indirectly by way of Northern seaports. The direct imports of Charleston were said to have amounted to several millions in 1807; by 1833 they had dwindled to one-half million; since that time they had gradually increased, but were still insignificant. 17 The same was said to be true of Virginia. At the time of the Revolution exports and imports had been equal; from that time to 1831 imports had steadily declined; since 1831 there had been some, though not marked, improvement. 18 Though Southern exports went directly to Europe, the business was not conducted by home merchants, but chiefly by agents of Northern and English firms. Southern "Richmond Enquirer, June 22, 1838. "Ibid., June 26, 1838; June 19. Mallory's report may be found in pamphlet form also. "Ibid., Nov. 30, 1838. In addition to the reports already mentioned, were a "Report on Manufactures" and a "Supplementary Report on Manufactures," both adopted by the Richmond convention. Ibid., June 26, 1838. "Charleston Courier, Oct. 24, 1837, report of the general committee of the first Augusta convention. "Savannah Daily Republican, April 7, 1838, report of the general committee of the second Augusta convention. "Richmond Enquirer, June 26, 1838, Mallory's report. 2O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 18401861 [2O seaports were described as mere appendages of Northern sea- ports, "places where their agents and factors do business, and who, having but little local interest, withdraw from them after a few years residence, with all their gains, to swell the wealth of the place of their early affection and attachment." 19 In Virginia, Northern steamboats often went up the rivers buying and selling directly to the farmers, the lumbermen, and the country mer- chants; the cargoes were paid for by bills on New York, and the money never entered Virginia. Interior merchants purchased their stocks in New York, Philadelphia, or Baltimore without the inter- vention of jobbers in Southern ports. 20 The profits Northern merchants and shippers made from con- ducting Southern commerce were believed to be very great and to account in large measure for the prosperity of Northern cities, while the loss of those profits explained the impoverishment of the cities of the South. The address issued by the second Augusta convention, after estimating at $630,000,000 the duties paid by the Southern states since the establishment of the Constitution of the United States, continued: If we suppose the value of the goods upon which the six hun- dred and thirty millions of duties were levied, to have been but four times the value of the duties, it amounted to $2,500,000,000. How were these goods brought to this country and distributed? The northern merchant has come hither and bought from the southern planter produce of equal value, abating from the price all the expenses, direct and incidental, of transportation. He has insured them in northern offices, and shipped them abroad in his own vessels exchanged them at a small profit for foreign merchan- dise brought it home paid one-fourth its value to the govern- ment added that amount and all the expenses of importation, and fifteen to twenty per cent, for his profits, to the price, and exposed it for sale. The southern merchant has now gone to him lingered the summer through at heavy expense bought a por- tion of the goods, reshipped them in northern vessels to southern ports added twenty-five per cent, more to the price, to cover his expenses and profits and sold them to the southern planter. All the disbursements made in this process, save such as are made abroad, are among northern men; all the profits, save the south- ern merchant's, are made by northern men . . . Every item in the endless catalogue of charges, except the government dues, may be considered a voluntary tribute from the citizens of the south to "Richmond Enquirer, June 26, 1838, Mallory's report. 21 ] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE 21 their brethren of the north; for they would all have gone to our own people, had we done our own exporting and importing. 21 At Charleston, Robert Y. Hayne quoted a report of a com- mittee of the Alabama Legislature in which it was estimated that over one-third the price of cotton went to New York agents and shippers. Hayne himself was content to put the tolls at 10 or 15 per cent. 22 George McDuffie thought the "voluntary tribute" paid annually to the North for carrying Southern commerce amounted to $io,ooo,ooo. 23 A Virginia delegate said the state could save $1,000,000 annually by importing directly. 24 But this direct an- nual drain was not the only loss occasioned the Southern people; there were also the "consequential losses," that is, the capital which would have accumulated had the South conducted her own commerce. Commercial dependence had operated to prevent the accumulation of capital in the South, and the deficiency of capital had handicapped enterprise. The greatness of New York City was pictured all said to have been built upon Southern staples and Southern trade. "You hold the element," ran the address of one of these conventions, "from which he derives his strength, and you have only to withdraw it to make him as subservient to you, as you now are to him. You have but to speak the word, and his empire is transferred to your own soil, and his sovereignty to the sons of that soil." 25 But the benefits were not confined to New York; the virtual monopoly of Southern commerce had "either directly or indirectly made the whole of the North and Northwest what they are," according to the call of the first Augusta convention. 26 Because of it, "the one people has risen like the rocket, and the other has fallen like its stick their positions must have been reversed, if the southern people had maintained their foreign trade." 27 Glowing descrip- tions were given of the prosperity of Southern states and cities after direct trade should be restored. Were direct trade estab- lished, according to the address calling the second Augusta con- vention, "there would be an end to the unequal barter of which "Niles' Register, LV, 41. "DeBow, Industrial Resources, III, 93. "Charleston Courier, Oct. 24, 1837, report, first Augusta convention. "Richmond Enquirer, June 15, 1838. ^Nilei Register, LV, 43, second Augusta convention. "Charleston Courier, Aug. 14, 1837. "Niles' Register, LV, 42. 22 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [22 we have spoken. The doleful cry for northern funds would be hushed. The speculators upon southern distress would cease. The disorders of the currency would be healed. The relation of the commercial agency would be changed. They would be acquaint- ances and friends, identical in feeling and interest; enjoying mutual confidence, and interchanging mutual favors .... The fountain and the streams of commerce lying all within our land, would enrich it to an extent that none can foresee. Our works of internal improvement would receive a new and ever-accelerat- ing impetus. Our drooping cities would be revived our creeping commerce winged; and all the blessings, physical, moral, and in- tellectual, which invariably accompany affluence and independ- ence, would be ours." 28 In regard to the causes for the "decline" of the shipping and the import trade of Southern ports, the conventions exhibited dif- ferences of opinion. First, there was the view that for many years the North had possessed great advantages over the South for these lines of business by reason of its superior wealth and larger ac- cumulations of capital. Not only must ship owners and importers be men of large capital, but they must have the backing of wealthy communities. And men of the South Carolina school, the followers of Calhoun and McDuffie, who predominated in the Augusta and Charleston conventions, were ready with explanations for the more rapid ac- cumulation of capital in the North than in the South. It was, they said, because of the unequal operation of the Federal government. The tariffs had long enriched the manufacturing sections at the expense of the agricultural. Furthermore, while the people of the South had paid their proportionate share of the Federal revenues, these revenues had been disbursed chiefly in the Northern cities, and this process, going on year after year, had transferred a stag- gering total from the one section to the other. A minority report in the Richmond convention rehearsed the old story of the as- sumption of the state debts by the Federal government and the refunding of the national debt carried out under the guidance of Alexander Hamilton. The refunded debt had been distributed be- tween the North and South in the ratio of three to one, and, because of this inequality of distribution, had acted as a mortgage ' Regist'er, LV, 43. Cf. Richmond Enquirer, June 26, 1838. 23] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE 23 of the one section upon the other, great sums having been trans- ferred from the South to the North in the form of interest paid to Northern bond holders from the common treasury. 29 It was claimed, also, by men in these conventions, that for long the funds of the Federal government had been deposited almost altogether in Northern banks, thus giving Northern business men a decided advantage over Southern in the ability to secure financial assist- ance. Those who held these views of the causes of Southern de- cline saw basis for hope for revival in the gradual reduction of the tariff, according to the provisions of the Compromise Tariff law of 1833, the recent extinguishment of the national debt, the destruc- tion of the United States Bank, and the evidence of a new policy in distributing deposits of the public funds. Another alleged cause for Southern commercial dependence, closely related to the one just mentioned, was the inadequacy of credit facilities. An examination, however cursory, of business methods in the South in that period makes it clear that a success- ful importing firm would have to command very great resources of capital or credit or both. It was proverbial that the planters lived each year upon the prospective income from the next year's crop. The country merchants, who extended them long credit, could not buy, therefore, except on long time. Importers, who bought on sixty or ninety days time, had to sell to the merchants upon from six to twelve or sixteen months. Country merchants were sometimes unwilling to give negotiable notes; they consid- ered a request to do so a reflection upon their business integrity. 30 Southern importers and jobbers did not, unaided, possess the means, and Southern banks were unable to lend them sufficient support, to enable them to extend to retail merchants the long credits which the latter received in the North. A correspondent of the Charleston Courier attributed the loss of foreign trade to the fact that country merchants began to buy of Northern jobbers because of the longer credits obtained. 31 Robert Y. Hayne enumerated long credits as one of the causes of the decline of Southern commerce. 32 McDuffie said he confidently SB Richmond Enquirer, June 26, 1838, Mallory's report. **Ibid., June 22, 1838, remarks of Mr. James and Mr. Caskie; June 26, 1838, Mallory's report. "Oct. 17, 1837. 82 DeBow, Industrial Resources, III, 98. 24 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [24 believed that, if the planters would "adopt the system of expend- ing, in the current year, the income of the year preceding .... it would dispense with one-half of the capital that would otherwise be necessary for carrying on our foreign commerce by a system of direct importation." 33 One of the questions dividing public opinion in Virginia in that period was the policy of authorizing an increase of bank capital in the state. It was the subject of animated de- bates in both the Richmond and the Norfolk conventions. Those favoring the increase thought the unwise policy of the legislature in refusing the authorization largely responsible for the decline of direct trade in Virginia. It is to the credit of the men of these conventions that they recognized other causes for Southern commercial dependence than the action or non-action of the Federal and state govern- ments. They recognized that agriculture had in the past proved more attractive to capital than the shipping or mercantile business; land and negroes had been considered the best investments. The existence of a prejudice against other pursuits than agriculture and the professions was admitted. Some were willing to credit the peo- ple of the North with habits of industry not possessed by their own people and with superior commercial enterprise; they spoke of the "voluntary tribute" which the South paid the North. The able re- port of the general committee of the Norfolk convention, read by John S. Millson, traced the decline of Virginia's foreign commerce to a very early date. Before the Revolution, the report said, bus- iness was conducted by British capitalists, and even then the resi- dent merchants were foreigners. At the time of the Revolution, British capital was withdrawn. True, the same thing happened in the North, but to a less degree, and the North was better pre- pared to take the place left by the British. Furthermore, agricul- ture became unprofitable in the North at an earlier day than in the South, and capital had been diverted to other industries. The committee further candidly admitted that "the decline of a con- siderable portion of our foreign import trade may be accounted for in the fact that we now derive from the Northern states many of those articles that we formerly imported from abroad." Such a diversion of trade was not a subject for regret. 34 A com- mittee in the Charleston convention likewise reported that the "DeBotv's Review, IV, 221. "Richmond Enquirer, Nov. 30, 1838. 25] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE 25 consumption of domestic goods had increased greatly, was still in- creasing, and was estimated by merchants to extend already to one-third of the whole consumption. The committee believed, however, that the quantity of foreign goods consumed in the South was sufficient to justify merchants in Southern seaports embarking in the importing business and to enable them to compete with Northern importers, who, of course, supplied a larger demand. 35 It was generally denied that Northern seaports possessed any natural or physical advantages over Southern seaports for con- ducting foreign commerce. The direct course of trade was the natural course, and the indirect the unnatural. Direct trade would save one set of jobbers' profits, the cost of shipping coastwise, the difference between the discount of Southern notes in New York and Charleston (or the cost of whatever other mode of payment was employed), and the expenses retail merchants incurred in go- ing North to lay in their stocks. Southern harbors were said to be as good as Northern. However that may be, it is certain that ocean going vessels entered Southern harbors to receive their ex- ports. These ships often came in ballast, and, it was reasonably argued, would be willing to carry imports at low freights. Ship- ping was considered adequate, though there was recognition that regular packet lines were needed. 36 The South was said to have timber for ship-building; but, in the thirties, not much was said about the desirability of promoting ship-building or ship-owning: the big object was to save the "importers' profits." Now and then someone suggested that the importing business in Southern cities was rendered precarious by visits of yellow, or "strangers'," fever; but residents of the South were generally ready to defend their coast cities against the prevalent belief that they were unhealthy. 37 Various plans and measures were suggested for promoting direct importations of foreign goods. Some were intended to over- come the obstacle to direct trade which lay in the lack of mercan- **DeBow's Review, IV, 495, Elmore's report. M It is a rather significant commentary, however, that much of the import trade of Charleston was made by her own merchants through New York, the goods being transhipped there. DeBow's Review, IV, 499. M DeBow, Industrial Resources, III, 98; Buckingham, Slave States of Amer- ica, I, 67 ff. In 1838, Charleston experienced the most costly epidemic of yellow fever of her history to that time. The severity of the epidemic was partly due to the conditions resulting from the great fire earlier in the same year. Charleston Mercury, Sept. 13, Oct. 26, 1838; Niles' Register, LV, 52, 161. 26 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [26 tile houses with sufficient capital to enable them to embark in the importing business. The first Augusta convention took the view that, while individual merchants were not possessed of resources necessary, the requisite capital could be got together by associa- tions of individuals, and to that end it appointed a committee to memorialize the state legislatures in behalf of limited co-partner- ship laws. In response to the committee's memorials the legisla- tures of Virginia, South Carolina, Georgia, Alabama, Tennessee, and Florida Territory enacted the desired legislation, and subse- quent conventions urged men of means to avail themselves of the opportunity thus afforded. 38 The opinion was expressed that there was an overproduction of cotton in the South, and that planters could profitably invest a portion of the proceeds of their crops otherwise than in land and negroes. If for a few years the plant- ers would apply one-half their net income to commerce, abundant capital would be supplied to conduct the whole foreign com- merce. 39 This suggestion, however, could not carry great weight, for, though subject to fluctuation, it was not until 1839 that there was a marked decline in cotton prices, and the average for the years 1835 to 1839 was fourteen cents, a higher average than that of any equal period since 1820 to 1824.* The question of capital, it was considered, would be a serious one only while the revolution in trade was being effected, for, once established, the profits of direct importations would supply the capital requisite for their continuance. 41 Other recommendations of the direct trade conventions dealt with the great obstacle to direct trade which lay in the inadequacy of credit facilities in the South. The second Augusta convention was especially detailed in its recommendations. It requested banks to form European connections that they might be able to assist importers with letters of credit. It recommended that the banks in the seaports discount paper from the interior for the "Savannah Daily Republican, April 6, 10, 1838; Niles' Register, LV, 43, 189. The Charleston convention adopted a resolution directing the chairman to ap- point and designate the spheres of committees whose duty it should be to call meetings of the people and recommend to them to invest a portion of their sur- plus capital in limited partnerships with merchants in trading centers and towns of their respective states. Charleston Courier, April 19, 1839. "Ibid., Oct. 24, 1837; DeBow's Review, IV, 222. 40 Donnell, E. J., History of Cotton, passim. "Savannah Daily Republican, April 10, 1838. 2j] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE If importing merchants paper for longer periods than six months as well as for shorter periods. The banks of the interior were re- quested to cooperate by collecting and remitting the proceeds of such paper to the coast with as little delay as possible. "It is not to be concealed that without the aid and support of the banks, the difficulties in our way will be greatly multiplied. It will depend upon them, in great measure, to determine the fate of our great measure." 42 The banks had suspended specie payment in May, 1837, and were beset with great difficulties. The convention de- vised a plan for equalizing the domestic exchanges and keeping up the credit of the banks during the period of suspension. In sub- stance the plan was that the banks of the principal Southern cities receive each other's notes and adopt some sort of a clearing house system, and that other banks maintain the value of their notes and keep down the rates of exchange by redeeming their notes at the seaports. A committee was appointed to urge the banks to adopt the plan. 43 The plan had good points, but was too complicated to be adopted at the time. The banks did make a more or less con- certed effort to resume specie payments in 1838, but after a few months were again forced to suspend, in October, 1839. The Vir- ginia conventions contented themselves, after hot discussions, with passing resolutions asking the legislatures of Virginia and North Carolina to authorize increases of banking capital. 44 Many other suggestions designed to promote direct importa- tions were made. Individual citizens were urged to be more enter- prising. It was declared a sacred duty to buy of those merchants who traded directly in preference to those who bought foreign goods from Northern jobbers. Interior merchants were requested not to go North for their stocks until they had investigated the possibil- ities of making their purchases in their own seaports. A local Vir- ginia convention, in 1838, recommended the organization of an as- sociation of retail merchants pledged to deal, after September I, 1839, with the importing merchants of Virginia cities only, "pro- vided those merchants would sell as cheaply as the Northern mer- chants;" and sixty or seventy citizens actually signed a pledge not "Savannah Daily Republican, April 10, 1838. "Ibid., April 6, 1838. "Richmond Enquirer, June 19, Nov. 23, 1838. These states did not have free banking laws at that time. 28 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [28 to patronize any merchant who would not join the association. 45 The pledge system was advocated in the Norfolk convention, but the convention refused to recommend it. 46 Complaint was made that the tax laws of the states descriminated against commercial capital in favor of land and slaves. 47 Some Southern states and cities taxed sales; port and wharf charges and fees were said to be too high. 48 The Charleston convention adopted a resolution re- questing the state legislatures to repeal discriminatory taxes. 49 A motion introduced at Norfolk to ask the Legislature of Virginia to exempt direct imports from taxation was defeated. 50 The prejudices of the people against mercantile pursuits were de- plored: "The commercial class must be elevated in public opinion to the rank in society which properly belongs to it." It was recognized as an evil that the great majority of the merchants, commission merchants, and factors in all the seaport cities of the South (and interior towns too, for that matter) were either Northerners or naturalized citizens. Commercial education was recommended to train Southern youth to enter the field. Robert Y. Hayne advanced to his son, William C., the capital necessary to enter into a partnership with one of the old importers of Char- leston. His purpose, he wrote, was to "try what can be done to rear up a young brood of Carolina merchants, which I believe to be indispensable to put our Southern America on a right foot- ing." 51 Manufacturers and exporters of foreign countries were asked to establish agencies in Southern cities for selling their goods,.as they had done in New York and other Northern seaports. The Norfolk convention considered this quite important; it ap- pointed a committee of seven to get in communication with European firms. 52 "Richmond Enquirer, Nov. 13, 1838, account of a meeting in Elizabeth City County, Oct. 6, 1838. "Ibid., Nov. 20, 1838. "Charleston Courier, April 17, 1839, "Report on the Taxation of Commer- cial Capital," submitted by Mitchell King in the Charleston convention. "DeBow's Review, IV, 498. "Charleston Courier, April 19, 1839. ""Richmond Enquirer, Nov. 23, 1838. "Hayne to J. H. Hammond, Jan. 18, 1839, /. H. Hammond Papers. "DeBow, Industrial Resources, III, loo; Richmond Enquirer, Nov. 20, 30, 1838. Early in 1839, George McDuffie was in England in the interest of a plan of his own "to form associations of from twenty to thirty planters to buy directly 29] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE 29 The direct trade movement of these years was very closely re- lated to efforts being made in the South Atlantic states to es- tablish connections by railroads or canals with the Ohio valley. South Carolinians were the chief promoters of a great project, which ultimately had to be abandoned, to build the "Louisville, Cincinnati, and Charleston Railroad." 63 The State of Georgia had undertaken the construction of a trunk line, the Western and At- lantic, from Atlanta to the Tennessee river. 84 Virginia had chart- ered the James River and Kanawha Canal Company, which, as the name indicates, was intended to provide continuous water communication between the seaboard and the Ohio. 65 All of the direct trade conventions very heartily endorsed these projects for connecting the South and West as most promising measures for securing direct trade. The West sold to the South, it was said; if it could also buy in the South, such a demand for goods would be created in Southern seaports that there could no longer be any question of their ability to import directly. "W T e must contend for the commerce of the West," read Mallory's report, "the sec- tion that gets that commerce will get the commerce of the coun- try." A resolution adopted by the Norfolk convention declared internal improvements to be the foundation cf an import trade. 56 The general committee of the Second Augusta convention said that direct trade was inseparably connected with the extension of intercourse to the West. "And when the great West shall find a market and receive their supplies through the seaports of the South, a demand will be furnished, the extent and value of which cannot be too largely estimated." 57 Calhoun, who took a deep in- terest in both projects, believed that direct trade could not be es- from English manufacturers without commissions or profits to agents, factors, or merchants except a small commission to Liverpool houses selected to sell the planters' cotton and send their orders to the manufacturers." He believed the planters could save 25 per cent upon their purchases in this way. McDuffie to J. H. Hammond, March 31, 1839 (Manchester, England), J.H.Hammond Papers. * 3 This project is discussed at length in U. B. Phillips, History of Transpor- tation in the Eastern Cotton Belt, ch. IV; and T. D. Jervey, Robert Y. Hayne . and His Times. "Phillips op. cit., ch. VII. "Ambler, Sectionalism in Virginia, from 1776 to!861, p. 182. ""Richmond Enquirer, Nov. 20, 23, 1838. "Savannah Republican, April 9, 1838. 3O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [30 tablished until railroads had been extended to the West. 58 On the other hand, discussion of the establishment of direct trade with Europe would stimulate interest in projects for connecting the seaboard and the Ohio valley. Many of the members of the direct trade conventions were closely associated with the internal improvement projects, and, though it would be inaccurate to say that the former were got up to give impetus to the latter, that was undoubtedly one of the objects of the conventions. The rela- tion was made very clear in the message of Mayor Pinckney, of Charleston, August, 1838. During the previous year, he said, Charleston had held meetings, "giving a decided impetus to those great enterprises, the Cincinnati railroad and a direct trade with Europe, of which the latter will supply the former with its life blood, and of which the united operation will assuredly achieve the commercial independence of the South, and, with it, the per- manent prosperity of our beloved city." 59 Although the money panic of 1837 was the occasion for the convening of conventions which proposed to attempt to change the course of Southern trade, the movement cannot be considered the outgrowth of depressed economic conditions. In 1837 and 1838, it was believed that business had received only a temporary, al- though sharp, check, and that enterprise would soon be in full swing once more. As were the rapid building of railroads, canals, and turnpikes, the direct trade movement was a manifestation of the spirit of progress and enterprise which had seized upon East, West, and South alike. The movement came to a temporary close when general stagnation of business settled upon the country in 1839 and continued for several years thereafter. 60 It is noteworthy that these direct trade conventions were con- cerned almost exclusively with economic conditions and means for improving them. The slavery question, which was being given considerable prominence about this time both in Congress and out M Calhoun to Sidney Breese, July 27, 1839: to James Edward Calhoun, Nov. I, 1841, Calhoun Correspondence. ""Report; Containing a Review of the Proceedings of the City Authorities from the 4th of Sept., 1837. By Henry L. Pinckney, Mayor. 60 The Charleston convention adjourned to meet in Macon, Georgia, in May, 1840; the meeting did not occur. The Norfolk convention arranged for another to meet in Raleigh, North Carolina, in November, 1839; there is no record of the meeting of the convention. 3l] AGITATION IN BEHALF OF DIRECT TRADE WITH EUROPE 3! by reason of the debates in Congress upon the exclusion of ab- olition literature from the mails and the treatment of abolition petitions in Congress, was rarely mentioned. A decade later no direct trade convention could be held, no plan for achieving commercial independence proposed, nor, for that matter, for erect- ing a cotton mill, building a railroad, opening a mine, or in any wa;/ promoting the material progress of the South, without con- sideration of, or due advertance to, its relation to the sectional struggle over slavery and the extension thereof. The argument would then without fail be advanced that the South must develop her strength and resources and achieve commercial and industrial independence in order to be prepared to defend her rights and honor in the Union, or, if worst came to worst, her independence out of it. George McDuffie did indeed allude to the existence of causes, tariff and slavery, which made the dismemberment of the confederacy "one of the possible contingencies for which it is the part of wisdom to provide"; 61 but as yet such considerations were very infrequently advanced, at least in public. The direct trade conventions of the thirties were in the main what they purported to be, namely, bona fide efforts on the part of Southern men to promote the prosperity and progress of their states and section and, particularly, their seaports. Several reasons may be advanced to explain the comparatively little interest displayed in the direct trade movement outside the three states of Georgia, South Carolina, and Virginia. North Carolina had no seaport which was considered to have the requi- site natural advantages for becoming a great Southern emporium. Most of her exports and imports were made by way of Virginia and South Carolina. Her population was conservative and com- paratively devoid of state pride. Alabama and Louisiana had seaports in Mobile and New Orleans. Both states were young, and were growing rapidly in population. Their agriculture had been prosperous. Just before the financial panic of 1837, both had enjoyed several years of speculative prosperity, which had been fully shared by Mobile and New Orleans. The rapidly grow- ing population of the two towns consisted largely of immigrants from the North of Europe; civic pride had not yet developed. The crash of 1837 was more severe in the Southwest than in the older "De Bow's Review, IV, 219. 32 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 |j2 Southern states, and the time was not auspicious for interest in any new movements. The direct trade conventions accomplished no tangible results in the way of changing the course of Southern commerce. They afford evidence of discontent in the older states of the South with their material progress. They show that the belief was held, and no doubt they contributed to its spread, that commercial depen- dence was an evidence and, at the same time, a cause of "South- ern decline." It is unnecessary to point out the common element in the view that the East was being enriched at the expense of the South because of the commercial vassalage of the latter and the quite prevalent belief that the operation of the Federal govern- ment had been unequal in its effects upon the material progress of the two sections. The direct trade conventions were another manifestation of the economic discontent of which evidence had been given during the nullification controversy. CHAPTER II MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY, 1840-1852 The industrial revolution was not well under way in the South until almost a generation after the Civil War. While the ante- bellum South was not completely devoid of manufacturing and mining, the progress of those industries did not keep pace with the progress of agriculture. Southern industry was no more diversified in 1860 than in the earlier decades of the century. In this respect the South presented a contrast to the North, where the industrial revolution was proceeding apace. Elsewhere in this thesis sta- tistics are given which illustrate the comparative industrial progress of the sections. During the 18405, Southern agriculture suffered a long and quite severe depression. During the same period cotton factories were being established at a more rapid rate than in the decades im- mediately preceding or following, and there was unusual progress in a few other lines of industry. The profits of manufacturers seem to have been large in comparison with those of planters. These conditions were chiefly responsible for the beginning of a more or less organized agitation" in favor of the establishment of manufactures. As the agitation developed, social and political arguments were adduced to support the economic. The argu- ments of the proponents of diversified industry did not go uncon- troverted, however. The history and analysis of this discussion shed light upon the subject of economic discontent in the South before the Civil War. An essential similarity will be noted be- tween some of the ideas at the basis of the agitation in behalf of manufactures and ideas which animated the direct trade move- ment described in the preceding chapter. The decade 1840-1850 brought the severest depression to agri- culture, particularly to cotton culture, that the South experienced prior to the Civil War. During the preceding decade cotton prices had averaged 12.6 cents, and the industry was profitable. During the 18405, however, the average price was about 8 cents, and the cotton planters were greatly disheartened. The decade opened with cotton between 8 and 9 cents; the following year prices were slightly higher; but after 1841 prices steadily declined until 33 34 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-lB6l [34 middling upland sold for 5 cents in New York, January I, 1845, the lowest price ever paid for American cotton. 1 A contributor to the Southern Quarterly Review wrote: "At no period of our history, from the year 1781, has a greater gloom been cast over the agricultural prospects of South Carolina, than at the present time." 2 John C. Calhoun wrote his son-in-law: "Cotton still con- tinues to fall. Its average price may be said to be about 4 cents per pound. The effect will be ruinous in the South, and will rouse the feeling of the whole section." 3 For years, 1845 was re- membered as the year of the great cotton crisis. The depression in agriculture was not confined to the cotton belt. Edmund Ruffin wrote from Virginia that prices were so low that agriculture could scarcely live. 4 Similar reports came from the Northwest, which still depended largely upon the cotton belt for a market for grain, pork and bacon, and live stock. The replies to Secretary of the Treasury Walker's circular (1845) requesting information upon which to base recommendations for a revision of the tariff, even after due allowance has been made for partisan bias, testify to the low state of agriculture in the South and West. 5 A North Caro- linian reported that for three years the profits of agriculture in his state had not been more than 3 per cent, because of poor crops and low prices; horses and mules were imported from Ohio, Indiana, Kentucky, Tennessee, and western Virginia, and prices were one-third lower than they had been during the ten years pre- ceding. Similar replies came from South Carolina, Georgia, and Alabama. Replies from Ohio, Indiana, Illinois, and Missouri rep- resented the profits of agriculture to be from 2 to 5 per cent. Scarcely a response was optimistic about the outlook for agricul- ture. The grain growing states were the first to experience a revival of prosperity. In 1846, the crop failure in Ireland and large deficiencies in Great Britain and in many parts of the Continent *C. F. M'Cay, "The Cotton Trade from 1825-1850," in Hunt's Merchants' Magazine, XXIII, 595-604; E. J. Donnell, History of Cotton, passim; M. B. Hammond, The Cotton Industry. VIII, 118 (July, 1845). 'Calhoun to Thomas G. Clemson, Dec. 27, 1844, Calhoun Correspondence. *Ruffin to Hammond, May 17, 1845, /. H. Hammond Papers. 'Exec. Docs., 29 Cong., I Sess., II, No. 5. A digest of the replies is in DeBow's Review, VI, 285-304. 35] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 35 created an extraordinary demand for foodstuffs, which, together with the repeal of the English Corn Laws the same year, led to a remarkable increase in the exports of provisions from America in that and the following year. 6 Other factors soon contributed to the revival, and Western agriculture entered upon a period of remarkable prosperity, unbroken until I85/. 7 The revival of pros- perity in the cotton industry was delayed for two or three years. The crop of 1846 was short, while the very conditions which caused a great increase in the prices of provisions prevented a considerable rise in the price. It was a saying in the South that dear bread in Europe meant cheap cotton. The crops of 1847 and 1848 were large, but breadstuffs continued high in Great Britain, Europe, in 1848, was in revolution, and cotton prices remained low. In the fall of 1849, however, cotton was high. Pacification of Europe, revival of business in France, fine harvests and conse- quent cheap bread in England, the exhaustion of old stocks of raw cotton, and the belief that the new crop was short, caused the sea- son to open with cotton at 9.5 to 11.5 cents at New Orleans. The average for the year was between n and 12 cents, and the price was maintained the following year. Though the price fell again in 1851-1852, it never again, before the war, fell to the level of the 18403. The average price for the decade 1850-1860 was 10.6 cents. 8 As cotton prices fell the older cotton states were the first to find its culture unprofitable. Their lands could not compete on equal terms with the newer lands of the Southwest; they faced not only reduced prices and diminished returns but also loss of popula- tion through emigration. As early as 1841, J. H. Hammond, of South Carolina, in an address before the State Agricultural So- ciety, showed a thorough grasp of the situation and proposed the remedies which were so fully discussed during the following "Census of 1860, Agriculture, cxli. T Other factors were the construction of railroads and canals connecting the East and the Northwest and the development of the Eastern market. *Donnell, History of Cotton, passim. Donnell's annual reviews of the cotton trade were taken from the New Orleans Price Current. His statistics were from the New York Shipping List. I have also used C. F. M'Cay's annual reviews of the cotton trade, which appeared regularly for several years in the December numbers of Hunt's Merchants' Magazine. See also DeBow's Review, XXVII, 106, for cotton prices. 36 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [36 years. 9 In the past, he said, the production of cotton could not keep pace with the demand, but now production promised to out- run consumption. Already the price had been forced down to a figure, 8 cents, at which cotton culture in South Carolina was profitable only on the richest soils. As remedies, Hammond pro- posed, first, improved methods of cultivation and diversification of agriculture. The planters must grow grain in sufficient quantities to supply the home demand; they must raise live stock and save the "immense sums which are annually drawn from us in ex- change for mules, horses, cattle, hogs, sheep, and even poultry." Tobacco, indigo, sugar cane, and grapes might be introduced. But these remedies would not suffice; capital must be diverted from agriculture to other pursuits. The state had mineral resources which could be developed. "Already furnaces, forges, bloomeries, and rolling mills have been put in operation with every prospect of success at no distant day." He hoped coal would be found near the iron. Manufactures might be developed. The state possessed splendid resources of water-power. A beginning had already been made in cotton manufacture. Manufactures should not be fostered by legislation at the expense of other industries; but where they grew up spontaneously they were undoubtedly a great blessing increasing population, providing a home market for agriculture, and saving large sums which otherwise would be sent out of the state. An industrial revolution was inevitable, and the change could be effected with less anxiety and loss if begun early and conducted judiciously. Hammond regretted the revolution in in- dustry and in "manners and probably the entire structure of our social system" which the failure of the old system was likely to occasion, but saw no grounds for apprehension. In the following years the discussion increased in volume. The Charleston Patriot published, in 1842, a series of articles in which it was maintained that there was an overproduction of cotton and the people of South Carolina were urged to abandon in part the raising of that staple and turn their attention to manufacturing. 10 *F5Ie 20,219, / H. Hammond Papers. It is worthy of note that Hammond had been a nullifier in 1832; as governor, in 1844, he was ready to lead his state in separate resistance to the Tariff of 1842; and shortly after he wrote the famous Letters on Southern Slavery, Addressed to Thomas Clarkson, Esquire. "Nuts' Register, LXII, 71. 37] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 37 Georgia newspapers were recommending to their people to do the same. 11 Professor M'Cay, of the University of Georgia, who for many years reviewed the cotton trade for Hunt's Merchants' Magazine, warned planters that production was outrunning con- sumption. 12 In February, 1845, a convention of cotton planters was held in Montgomery, Alabama, to organize the planters of the cotton belt for the purpose of limiting production and forcing prices up. 13 The committee on agriculture of the Southwest- ern Convention, at Memphis, in 1845, complained that interest in agricultural improvement had given way to interest in internal im- provements and politics, and that there was an overproduction of cotton. The committee recommended that planters grow less cotton and produce their own bread and meat; that scientific agriculture be encouraged by the establishment of agricultural societies and agricultural journals, and by state legislatures; and that capital be diverted from cotton planting to manufacturing. 14 There was still talk, however, of possible competition from India if prices should rise, 15 and the low prices were frequently attrib- uted to speculation in cotton and to a combination of English fac- tors with the Manchester buyers. 16 It was in South Carolina that a serious attempt to arouse the public mind in favor of the diversification of industry was first made. The situation there was unusual. Not only was the de- pression in the cotton industry most severely felt, but the peculiar political bias of a large element threatened, in 1844 and 1845, to lead to another crisis similar to that of 1832 and 1833. When the Tariff of 1842 was enacted, the South Carolina Legislature had been content to pass resolutions denouncing it and declaring that it would be endured as long as there was hope of repeal by the Democratic party after the next election. 17 In the next Congress, 1843-1845, the Democrats were in the majority in the House; but an attempt to revise the tariff, by the McKay bill, was defeated, ll Niles' Register, loc. cit. "Hunt's Merchants' Magazine, IX, 523. "Niles' Register, LXVIII, 4. ^Journal of the Proceedings of the Southwestern Convention began and held at the city of Memphis on the 12th of November, 1845, pp. 41-55. "Donnell. History of Cotton, 276. "New Orleans Bee, Mar. 2, 1844; Niles' Register, LXVI, 38. "Ibid., LXIII, 232-235, 344-345. 38 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O1 86 1 [38 May, 1844, by an alliance of twenty-seven Northern Democrats with the Whigs. 18 This desertion by Northern Democrats and, shortly thereafter, the publication of the celebrated "Kane Let- ter," in which the Democratic candidate for the presidency clever- ly "straddled" the tariff question, 19 caused many in South Caro- lina to abandon hope of relief from the burdens of the tariff through the instrumentality of the Democratic party. Meanwhile, the blocking of the annexation of Texas by representatives from the non-slaveholding states had occasioned the cry of "Texas or disunion" in South Carolina and other Southern states. Under these circumstances a group of South Carolina politicians, led by R. B. Rhett, Armistead Burt, and I. E. Holmes, with the support of the Charleston Mercury and several other papers of like stripe, and the sympathy of Governor J. H. Hammond, George McDuffie, and Langdon Cheves, declared, in the summer of 1844, for state resistance to the Tariff of 1842 and attempted to lead the state to adopt that policy. 20 It was with some difficulty that John C. Calhoun, F. H. Elmore, and other leaders checked the "Bluffton Movement," as it was termed, and caused saner counsels to pre- vail. 21 Governor Hammond, indeed, in his message to the Legis- lature, November 26, 1844, arraigned the tariff, expressed the opinion that no relief could be expected from the incoming Polk "Cong. Globe, 28 Cong., i Sess., 622. "National Intelligencer, July 25, 1844. ""I. E. Holmes to Hammond, July 23, 1844, /. H. Hammond Papers; Ham- mond to Capt. R. J. Colcock, Sept. 12, 1844 (asking for the plans of the Citadel); George McDuffie to Hammond, Sept. 22, 1844; General James Hamilton to Ham- mond, Oct. 4, 1844; R. B. Rhett to Hunter, August 30, 1844, Correspondence of R. M. T. Hunter; Charleston Mercury, Aug. 8, 1844, an account of the dinner given to R. B. Rhett at Bluffton, July 31, 1844, where the movement was launched and whence it got its name; ibid., Aug. 9, editorial, "Our Position and Our Pledges" (by A. J. Stuart, senior editor); Niles' Register, LXVI, 369, quot- ing letter from I. E. Holmes to the Charleston Mercury; ibid., LXVII, 49, quot- ing letter from Judge Langdon Cheves to the Charleston Mercury. Cf. Stephen- son, Texas and the Mexican War, ch. IX. M F. H. Elmore to Calhoun, Aug. 26, 1844, Calhoun Correspondence. "The excitement in a portion of Carolina has gradually subsided, and will give no further trouble. I had to act with great delicacy, but at the same time firmness in relation to it." Calhoun to Francis Wharton, Sept. 17, 1844, Calhoun Corre- spondence. Cf. James A. Seddon to Hunter, Aug. 19, 22, 1844, Correspondence of R. M. T. Hunter; Niles' Register, LXVI, 434, account of the big Charleston meeting of Aug. 19, 1844. 39] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 39 administration, and urged the Legislature to take such measures as would at an early day bring all the state's "moral, constitu- tional, and, if necessary, physical resources, in direct array against a policy which has never been checked but by her inter- position." 22 But the Legislature tabled all resolutions for resist- ance, and by a large majority voted confidence in the Democratic party. This action was taken just after the notorious Twenty- first Rule of the House, prohibiting the receiving of abolition peti- tions, had been defeated at Washington. 23 The leaders of the Bluffton movement credited their defeat to the presidential as- pirations of John C. Calhoun, and complained very bitterly of what they termed his desertion. 24 The resistance faction, as well as many anti-tariff men who still placed reliance in the Democratic party, attributed the crisis in the cotton industry to the tariff. They thought the view that there was an overproduction of cotton unworthy of considera- tion. 25 England, they said, could not consume cotton because the Tariff of 1842 had deprived her of the American market for man- factured goods. I. E. Holmes professed to believe that the opera- tion of the tariff would in a few years render cotton planting en- tirely profitless, and that no other industry could be found to which labor could profitably be turned. 26 Rhett and McDuffie warned tariff men in Congress that South Carolina might be "driven" to manufacture for herself. 27 Calhoun wrote: "The pressure of the Tariff begins to be felt, and understood, which will lead to its overthrow, either through Congress or the separate action of the South." 28 "NileS Register, LXVII, 227 ff. Hammond to McDuffie, Dec. 27, 1844, /. H. Hammond Papers; F. W. Pickens to Calhoun, Dec. 28, 1844, Calhoun Correspondence; Niles' Register, LXVIII, 347 (Aug. 1 6, 1845), quoting from the Charleston Mercury a letter from ''Bluffton Politician," dated on the anniversary of the Bluffton dinner; Cong. Globe, 28 Cong. 2 Sess., 7. "Hammond to McDuffie, Dec. 27, 1844, /. H. Hammond Papers. "Letter of Judge John P. King, Charleston Mercury, Nov. 5, 1844. "Niles' Register, LXVI, 369, quoting the Charleston Mercury; National In- telligencer, Aug. 6, 1844. "Cong. Globe, 28 Cong., I Sess., 612; Appx. 108, 658; Hunt's Merchants' Magazine, X, 406. "Calhoun to Thomas G. Clemson, Dec. 27, 1844, Calhoun Correspondence. 4-O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [40 Against these convictions, the Whigs and many Democrats took issue. The Charleston Courier declared without equivocation for a moderate tariff. 29 A pamphleteer, replying to a letter of Judge Langdon Cheves, declared that free trade would not save the state. The ruin of the state was due to the lack of stimulus which manufactures would give to agriculture and commerce; and it was the hostility of politicians which prevented manufactures from being established. 30 R. W. Roper, a rich planter, generally aligned in politics with the Hammond or anti-machine faction of the Democratic party, came out for the policy of encouraging do- mestic manufactures as an amelioration of the tariff. In an ad- dress before the State Agricultural Society, in November, 1844, he traced the depression in the cotton industry to overproduction, and declared for diversified agriculture and the encouragement of manufactures and commerce, not only as a remedy for economic ills but also as a means of becoming independent of the North. "As long," he said, "as we are tributaries, dependent on foreign labor and skill for food, clothing, and countless necessaries of life, we are in thraldom." 31 Roper's address was vigorously at- tacked in a series of articles in the Charleston Mercury under the caption, "Shall we continue to plant and increase the overgrowth of cotton? Or shall we become manufacturers of cotton stuffs?" In the opinion of the author of these articles, there was no overpro- duction of cotton; but the ills of the South came from overtaxa- tion. South Carolina, he said, could not develop diversified indus- try with her system of labor, and it was not desirable that she should. 32 Late in the year 1844, there appeared a series of articles headed Essays on Domestic Industry; or an Inquiry into the Expediency of Establishing Cotton Manufactures in South Carolina, by Wil- liam Gregg, of South Carolina. The articles first appeared in the Charleston Courier. Upon request they were reprinted in pam- phlet form. They attracted wide attention throughout the South, being republished in nearly all the newspapers of Georgia, Ala- M Quoted in the National Intelligencer, Aug. 6, 1844. *A Reply to the Letter of the Hon. Langdon Cheves. By a Southerner. "Roper to Hammond, Oct. 28, 1844, /. H. Hammond Papers; Niles' Regis- ter, LXVIII, 103, 120. The address was reviewed in the So. Quar. Rev., VIII, 118-148 (July, 1845). "Niles' Register, LXVIII, 54, 103, 120. 41 ] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 4! bama, and other states. 33 They constituted the most elaborate argument for the diversification of Southern industry that ap- peared before the Civil War. Already a cotton manufacturer, Gregg later increased his interests. He was known until after the Civil War as the most successful cotton manufacturer in the Southern states and the ablest advocate of the policy of develop- ing manufactures in that section. 3 * Gregg described the depressed condition of agriculture in the state and the tendency of capital and enterprise to migrate to more fertile lands. The causes lay not in the tariff but in lack of energy on the part of the people, want of diversified agriculture, and dependence upon the North for numerous articles of manu- facture which might be produced at home. He called attention to the rapid progress then being made in cotton manufacturing in the neighboring states of Georgia and North Carolina and advised the people of South Carolina to emulate the example. He showed that the requisite capital was available. As for a labor supply, slaves could be used, and in many respects would be preferable to whites; but he did not overlook the possibility of employing the thousands of poor whites, who as a class were an unproductive element in society. Later he became an earnest advocate of the employment of this class both on economic and philanthropic grounds. Gregg understood the difficulties which infant industries would have to meet. He, therefore, advised the establishment of factories by joint stock companies rather than by individuals, and confinement for several years to the manufacture of only coarse goods, thus taking fullest advantage of the ability of South- ern mills to command cheaper raw materials than Northern mills. It seemed politic not to antagonize unduly the anti-protectionist sentiment of South Carolina: Gregg assured his readers that no laws would be asked for the protection of the enterprises in which it was proposed to embark. He did not believe that manufactures would ever predominate over agriculture in the state; and those who advocated diversification did not wish such a result, he said. "DeBow's Review, X, 349. The essays are, in a somewhat abridged form, in DeBow's Review, VIII, 134-46; also in the appendix of D. A. Tompkins, Cot- ton Mill, Commercial Features, A Text-Book for the Use of Textile Schools, etc. (Charlotte, N. C, 1879). **De Bow's Review, X, 348-52, a short sketch of Gregg's career. 42 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84<>l86l [42 At the next session of the South Carolina Legislature, Novem- ber, 1845, charters for several companies to erect cotton factories were applied for. At the time corporations were somewhat un- popular in the South, and opposition was met. Gregg thereupon wrote a pamphlet entitled An Inquiry into the Expediency of Granting Charters of Incorporation for Manufacturing Purposes in South Carolina. Copies were distributed among the members of the Legislature. After a sharp struggle the charters were grant- ed by large majorities. 35 The Graniteville company, in which Gregg was a large stockholder, was one of those chartered. Only the most substantial citizens were permitted to take stock. 36 Gregg was made manager; the factory was soon built and put in successful operation. He was allowed to carry into practice his philanthropic ideas in regard to the poor whites. Cottages were built and rented to the operatives, free and compulsory education established, a church constructed, and intemperance forbidden. No negroes were employed. The factory was one of the few in the South that continued to pay dividends during the hard years of 1850-1854." Many others, following the publication of Gregg's essays, came forward to advocate the diversification of Southern industry, par- ticularly by the erection of cotton factories near the cotton fields. Governor Crawford, of Georgia, urged the Legislature to adopt some plan to restore the fertility of the soil and foster manufac- tures. 38 The Tennessee House of Representatives appointed a select committee to report on manufacturing resources. 39 The state of Alabama engaged Mr. Tuomy, professor in the State University, to make a survey of the mineral resources of the state. 40 The Richmond Whig published, in 1846, the Letters from the Hon. Abbott Lawrence to the Hon. William C. Rives of Vir- ginia, which, while primarily a plea against the repeal of the tariff, hailed the movement in the South for diversification of industry, ""De Bow's Review, X, 351. 86 Ker Boyce to Hammond, Dec. 12, 1845, /. H. Hammond Papers. '"DeBow's Review, X, 351; XVIII, 789 f.; Hunt's Merchants' Magazine, XXI, 671. Cf. Ingle, Southern Sidelights, 85. "Niles' Register, LXIX, 162. "Ibid., LXIX, 400. *"DeBow's Review, IV, 404. Tuomy later became state geologist and issued his First Annual Report, 1850. 43] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 43 and urged the people of Virginia to manufacture and develop the state's mineral resources. 41 DeBow's Review, the first number of which appeared in January, 1846, lent its influence to the cause. 42 Numerous articles in that journal testify to the growing conviction that there was an overproduction of cotton, and that the South should diversify agriculture and divert capital to other industries. In South Carolina, 1849, an organization styled the "South Caro- lina Institute for the Promotion of Art, Mechanical Ingenuity, and Industry" was formed. This organization was a direct out- growth of the movement for diversification of Southern industry. 43 The .interest in cotton manufactures spread to the Ohio valley. One of the most active advocates was Hamilton Smith, a wealthy lawyer and business man of Louisville, Kentucky, who had ac- quired large holdings in coal lands near Cannelton, Indiana. In 1847, he wrote a series of articles for the Louisville Journal dem- onstrating the advantages of coal over water power in cotton fac- tories, and the advantage of the Ohio valley over the East as a seat for such factories by reason of proximity to the cotton fields. His articles were widely copied in Southern and Western news- papers, and some of his letters were inserted in the Manchester, England, Guardian. In the following year, Smith and several other public spirited citizens of Kentucky, Indiana, Mississippi, and Louisiana, being desirous of proving their faith by works, organized a company which constructed a model factory at Can- nelton. Charles T. James of Rhode Island, the most successful builder of steam cotton factories in the United States, became in- terested in the project, and superintended the erection of the fac- tory. A journal, the Cannelton Economist, was established to con- duct a campaign in the behalf of manufactures.** The agitation in behalf of building cotton factories received en- couragement from the fact that considerable capital was actually being invested in the new branch of industry and seemed to be "Also published as a pamphlet, 1846. **I, 5. In the number for Nov., 1847, a Department of Domestic Manufac- tures was begun, which was continued with few interruptions for several years. "DeBow's Review, VIII, 276; XI, 123. ^Ibid., XI, 90 f.; VI, 75 ff.; VIII, 456-61; Western Journal and Civilian, II, 139; Hamilton Smith, The Relative Cost of Steam and Water Power, the Illinois Coal Fields, and the Advantages Offered by the West, particularly on the Lower Ohio, for Manufactures. 44 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [44 yielding good profits. All through the 18405, the journals of the South recorded at frequent intervals the establishment of fac- tories, especially cotton factories, in that section. In 1843, the Bal- timore American stated that in North Carolina a revolution had been effected in the trade of cotton yarns within a few years. 45 Niles' Register, in 1845, remarked the number of cotton factories being erected alongside the cotton fields, and prophesied that in a few years the Southern states would supply coarse cotton clothing for millions. 46 In the tariff debates of 1844 an ^ 1846, congressmen from North Carolina and Georgia, particularly, invited attention to the rapid development of cotton and other manufactures in their states. 47 The numerous acts incorporating manufacturing companies passed during these years by the legislatures of states which had not yet enacted general incorporation laws would seem to testify to a development of manufacturing. During the last few years of the decade and the first few years of the next, the ac- counts of new factories, built or in process of building, became more and more frequent; and the development began to attract notice in the North. Said Hunt's Merchants' Magazine, 1850: "We seldom take up a paper published in the Southern and Western States of the Union, that does not contain some new de- velopment of their manufacturing enterprise." 48 By 1849 the movement to "bring the spindles to the cotton" had become popular in all quarters of the South. According to De- Bow's Review, every month added more and more to the interest shown in manufactures. 49 The next year Hamilton Smith wrote: ". . .for the last two years, one of the most prominent topics of dis- cussion in the newspapers of the South and West has been, not whether cotton mills could or could not be operated at home, but when, where and by whom, they should be put in operation." 50 '"Quoted in Niks' Register, LXIV, 272. "Ibid., LXV1II, 87, April 12. "Cong. Globe, 28 Cong., i Sess., Appx., 598, Cobb, of Ga., in the House; 28 Cong., i Sess., Appx., 108, McDuffie, of S. C., in the Senate; 28 Cong., i Sess., 512, Berrien, of Ga., in the Senate. "XXIII, 247. Cf. XVIII, 227. "The progress of manufacturing industry at the South and West has been very rapid in the past two years." Ibid., XXII, 646, (1850). "VII, 454- "DeBoiv's Review, VIII, 550. 45] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 45 The people of the South became firmly convinced that their section had rare advantages for the manufacture of cotton goods, and could compete successfully with New England. Statements were frequently made and rarely contradicted that mills already in operation were earning profits of from 15 to 20 per cent. The representations of Gregg, Hamilton Smith, and others, relative to the advantages possessed by the South, seemed sound. The most authoritative statements were those of General Charles T. James, of Rhode Island. James claimed to have superintended the erec- tion of more than one-eighth of the cotton spindles in the United States. He had shown his faith in the South and West by taking stock in the steam factory at Charleston, South Carolina, and the one at Cannelton, Indiana. 51 Leaders in the diversification move- ment appealed to him to give information which might help to arouse interest and educate the people in the subject. In response he wrote, in 1849, a pamphlet entitled, Practical Hints on the Comparative Cost and Productiveness of the Culture of Cotton and the Cost and Productiveness of its Manufacture, etc. 52 The pamphlet was widely read and quoted, as were a number of articles which he wrote. He compared the great profits of cotton manufacturers with planters' profits; undertook to demonstrate the superiority of steam-power, which the South must use, over water-power; and dwelt upon the advantages the South possessed in having fresh raw material at hand and the saving in freight charges to be effected by establishing the factories near the fields. He gave the assurance that no great reserve of capital was neces- sary to embark in the business. Factories could be started on credit, and capital would accumulate just as had been the case in New England. No fears need be entertained in regard to labor supply: if the factories should be opened, the labor and skill would be at hand. The South would not experience the difficulties in effecting this revolution in its industry which New England had encountered thirty years before; for she could start with the best machinery, and could avoid the mistakes made in the North. James's statements were violently attacked in the New England press. 53 A warm debate was conducted by James and Amos A. "DeBow's Review, IX, 671 ff.; Hunt's Merchants' Magazine, XXII, 311,4.55. "Published also in DeBow's Review, VII, 173-6, 370-2; VIII, 307-11, 462-6, 556-60. The substance is in Hunt's Merchants' Magazine, XXI, 492-502. Review, IX, 558, quoting the New York Herald. 46 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [46 Lawrence, a prominent Massachusetts cotton manufacturer, through the columns of Hunt's Merchants' Magazine. Lawrence said the South could not manufacture because she lacked capital, and factories could not be successful if built with borrowed money. He contended that James had underestimated the profits of cot- ton planters and overestimated those of cotton manufacturers. He controverted James's statements in regard to the superiority of steam-power over water-power. William Gregg and Hamilton Smith joined in the controversy in support of James. 54 The South- ern press thought Lawrence's articles were dictated by self-inter- est, and that James had completely prostrated his reviewer. The New England manufacturers were represented as being hostile to the new enterprises in the South. James himself wrote: "For years the Northern press has been loud and frequent in recom- mendations to the South, to enter the field of enterprise, and man- ufacture her own staple During the time, however, the man- ufacturers have uttered no note of encouragement." 55 But the wide spread interest manifested in manufacturing dur- ing these years and the welcome given every evidence of industrial enterprise were not due solely to the prevalent belief that there was an overproduction of cotton, and that spinning the yarn and weaving the cloth would yield a higher profit upon capital in- vested than did the production of the raw material. Manufac- tures were approved as promising an avenue of escape from an ill balanced economic system and its attendant evils, social and po- litical. In the first place, home manufactures would free the South from dependence upon the North for numerous articles which might be produced at home; just as diversified agriculture would free it from dependence upon the West for horses, mules, pork, and bacon; or as direct trade would free it from commercial de- pendence upon the East. Dependence upon other sections of the Union was felt to be "degrading vassalage," a subject for morti- fication and humiliation, and because of it the North was being enriched and the South impoverished. "Hunt's Merchants' Magazine, XXI, 628-33; XXII, 26-35, 184-94, 290-311, 107-8; XXIII, 342-3; Df Bow's Review, VIII, 550-55; IX, 674-75. "Hunt's Merchants' Magazine, XXII, 309. 47] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 47 Northern men were constantly boasting of the superiority of their section of the Union; every foreign traveler drew a pic- ture of contrast. The wealth and population of the North, the size, prosperity, and attractiveness of its cities and towns, the mileage, cost, and efficiency of the railroads and canals, the manufactures and mines, ships and shipping, the farms, the price of land and the methods of agriculture, the homes, shops, and places of amuse- ment, the schools and colleges, number of students and percent- age of illiteracy, newspapers and their circulation, the develop- ment of literature and art all were contrasted with those of the South, and almost invariably to the advantage of the North. It was pointed out that Southerners depended upon Northern ship- ping, bought Northern manufactured goods, flocked to Northern watering places, sent their sons to Northern colleges, and read Northern literature. The conclusion was that the North had reached a higher degree of civilization, prosperity, and comfort. The disparity was generally credited to superior industry and en- terprise in the North and to the blighting effects of slavery in the South. Southern people admitted the contrast it was impossible not to do so. They generally, by no means without exception, ad- mitted that the North was more prosperous. When John Forsyth, in his lecture on "The North and the South," asked the question, "Why is it that the North has so far outstripped the South in com- merce, the growth of its cities, internal development, and the arts of living?" 56 he but made an admission that Southerners com- monly made. J. H. Hammond wrote: "It has so often been as- serted, that in population and its ratio of increase, in wealth, aggregate and average and the facility of its accumulation, in in- dustry, intelligence and enterprise the North is vastly in advance of the South, and by consequence that it is the strong and pro- tecting, while the South is the weak and dependent section all these things have been so long and so generally asserted in the South as well as the North, that they have gained almost universal credence." 57 "DeBow's Review, XVII, 365. "Southern Quarterly Review, XV, 275. Cf. J. H. Hammond to Wm. Gil- more Simms, Mar. 9, 20, 23, Apr. 6, 1849. /. H. Hammond Papers. 48 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [48 Now the superiority of the North in these respects was not to be viewed with equanimity in any case by the loyal and progres- sive Southerner; and his discontent was augmented because of his belief that the North was prospering at the expense of the South. The feeling of a large element in the South in regard to the matter is well illustrated by the following typical quotation from an Alabama newspaper: At present, the North fattens and grows rich upon the South. We depend upon it for our entire supplies. We purchase all our luxuries and necessaries from the North .... With us, every branch and pursuit in life, every trade, profession, and occupation, is dependent upon the North; for instance, the Northerners abuse and denounce slavery and slaveholders, yet our slaves are clothed with Northern manufactured goods, have Northern hats and shoes, work with Northern hoes, ploughs, and other implements, are chastised with a Northern-made instrument, are working for Northern more than Southern profit. The slaveholder dresses in Northern goods, rides in a Northern saddle, .... sports his North- ern carriage, patronizes Northern newspapers, drinks Northern liquors, reads Northern books, spends his money at Northern watering-places, .... The aggressive acts upon his rights and his property arouse his resentment and on Northern-made paper, with a Northern pen, with Northern ink, he resolves and re-resolves in regard to his rights ! In Northern vessels his products are carried to market, his cotton is ginned with Northern gins, his sugar is crushed and preserved by Northern machinery; his rivers are navigated by Northern steamboats, his mails are carried in Northern stages, his negroes are fed with Northern bacon, beef, flour, and corn; his land is cleared with a Northern axe, and a Yankee clock sits upon his mantel-piece; his floor is swept by a Northern broom, and is covered with a Northern carpet; and his wife dresses herself in a Northern looking-glass; ... his son is educated at a Northern college, his daughter receives the finishing polish at a Northern seminary; his doctor graduates at a Northern medical college, his schools are supplied with Northern teachers, and he is furnished with Northern inventions and notions. 58 Some of those who preached diversification of industry not only affirmed, as did the anti-tariff men for that matter, that the North was growing prosperous, wealthy, and powerful at the South's ex- pense, but demonstrated why it would continue to do so as long as the latter persevered in her unwise application of labor. They ""Quoted in F. A. P. Barnard, An Oration Delivered before the Citizens of Tuscaloosa, Alabama, July 4th, 1851, p. 12. 49J MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 49 laid down the general propositions that an agricultural people is always exploited by an industrial people, and that wealth tends to flow toward industrial centers. In the opinion of M. Tarver, it was because she parted with her staples at prime cost and pur- chased almost all of her necessary supplies from abroad at cost plus profits, that the South was "growing poorer while the rest of the world is growing rich, for it is easy for the world to enrich itself from such a customer on such terms." 59 Governor J. H. Hammond, who in his address before the South Carolina Insti- tute set himself the task of showing philosophically why a people of one occupation can never attain prosperity and influence, thought one industry was not enough to absorb all the genius and draw out all the energies of a people. 60 According to the Rich- mond Enquirer, "commercial and manufacturing nations levy a heavier tax on their dependents than any despot ever exacted from subject provinces. Labor employed in commerce or manu- factures, in the general, pays three or four times as much as farm- ing labor, and in the exchange of one for the other, the farmer gives the manufacturer three or four hours' labor for one." 61 Sim- ilar was the reasoning of F. A. P. Barnard, of Alabama State University: The kinds of labor in which the element of skill most predominates are the most productive. Therefore, the wealth of a people depends as much upon the direction given to labor as upon the amount of labor employed. An agricultural people might be rich, though only in the case Nature is lavish in her bounties; but "riches thus bestowed, while the means of greater riches remain unemployed, will never give contentment." 62 But no matter how the North reaped profit from Southern in- dustry, there could be no doubt of the advantages of retaining the profit at home. Everything that manufactures had done for the North and for England they would do for the South. Her stagnant cities would grow, and new ones spring into existence. K DeBow's Review, III, 203. "Ibid., VIII, 503 if. Cf. Hammond to William Gilmore Simms, Dec. 20, 1849. /. H. Hammond Papers. "Quoted in DeBow's Review, XX, 392. See also Fitzhugh, Sociology for the South, ch. XIV, "Exclusive Agriculture," and ch. XVIII, "Head-work and Hand- work." "Oration Delivered before the Citizens of Tuscaloosa, Alabama, July 4th, 1861, p. 16 f. 5O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 18401861 [$0 Surplus capital no longer would be under the necessity of seeking investment elsewhere. Railroads would be built, and steamships launched upon the rivers; dykes would be built, and marshes drained; capital would be forthcoming to develop the mineral re- sources which the people of the South were beginning to realize she possessed. For the planter and the farmer a home market would be provided, not subject to the fluctuations of the foreign market. Diversified agriculture would be stimulated; the planter would no longer have to resort to distant states for his mules, pork, corn, and hay. 63 Nor did the proponents of diversification neglect to depict the social benefits to come with new industries. With the develop- ment of manufactures, towns and villages would spring up among the scattered population. More and better schools could be estab- lished; for the chief cause of backwardness in educational progress in the South was the sparsity of population. Churches could be brought within the reach of a greater number. Colleges could be supported at home, and Southern parents would no longer be under the necessity of sending their sons North for a good college training. With the increased wealth and population which manu- factures would bring, the South could adequately support her own press and literature. Said Hammond, after having given a glowing description of the revivifying effects of manufactures upon his state: "I am not conjuring up ideal visions to excite the imagination. All these things have actually been done. They have been, in our own times, and under our own eyes, carried out and made legible, living, self-multiplying and giant-growing facts in Old England and New England; and they have been mainly ac- complished by the incalculable profits which their genius and enterprise have realized on the product of our labor."** But the prophets of a new order met prejudices against manu- factures which they could not wholly dispel. Politicians had too often described the cities and factory towns of the North as hotbeds of poverty, ignorance, vice, crime, and unreligion, the seats of abolition and the numerous isms with which the land was "The best examples of the home market argument are in Barnard, op. cit., and an article, ''Should the Loom Come to the Cotton, or the Cotton Go to the Loom?" Western Journal and Civilian, I, 319-332. "DeBotv's Review, VIII, 516. See also Fitzhugh, Sociology /or the South, chs. XII-XV. 51 ] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 5! afflicted. Manufactures had been too frequently described as in- compatible with liberty, freedom, culture, and virtue, and agri- culture glorified as the only industry capable of producing a liberty-loving and chivalrous race. 65 Often the proponents of di- versification considered it necessary to give the assurance that no large towns, but only villages, would be created, and that there was no danger of manufactures ever predominating over agricul- ture in the planting states. 66 Too, it must be noted, there was a feeling all too prevalent in the South that manual labor, and par- ticularly mechanical labor, was degrading and beneath the dignity of white men. Young men of intelligence and ability, who might have become skilled mechanics, managers, or superintendents of factories, felt that they would lose caste by entering a cotton fac- tory. Such employment was less becoming gentlemen than agri- culture, the professions, or even the mercantile business. The dig- nity of labor had to be proclaimed. Few more scathing denuncia- tions of Southern social standards, as well as of the inertia, lethargy, and lack of foresight of Southern men, can be found than some of those uttered by Southern men who were trying to point the path of progress and urge their people along it. 67 One argument in behalf of manufactures by no means infre- quently used was that they would give employment to the "poor whites." The poor whites were the non-slaveholding whites of the black belts, the hill country, and the pine barrens. Some of them, upon worn out and abandoned plantations or their small hill farms, engaged in agriculture in feeble competition with the planters. Others obtained a precarious subsistence by doing oc- casional jobs for the planters, by hunting and fishing, by begging or stealing from the slaveholders, or by trading with the slaves and inducing them to plunder for their benefit. They were not employed by the planters to work in the cotton fields, and would have been unwilling to work with the slaves had opportunity been afforded them. As a class they produced less than they consumed, **DeBow's Review, VIII, 508; XI, 127; XII, 49; XVII, 178; So. Quar. Rev., VIII, 142. "DeBow's Review, VIII, 522; XI, 130-132. "So. Lit. Mess., XX, 513-28 (Sept., 1854); So. Quar. Rev., VIII, 460 ff.; DeBow's Review, VIII, 134, 506; XVII, 363; XIX, 614; XXIV, 383; Barnard, op." c it., 23; Aaron V. Brown, Speeches, Congressional and Polifical, and other Writings, 668. 52 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-l86l [52 and, therefore, were a burden upon society. Their ignorance was as general as their poverty; vice and crime were common among them. Their number is difficult to estimate. In 1849, Governor Hammond estimated at 50,000 the number of those in South Car- olina whose industry was not "adequate to procure them, honest- ly, such support as every white person in this country is, and feels himself entitled to." 68 William Gregg put the number at 125,000, more than one-third of the white population of the state. 69 The number in other Southern states was probably some- what less in proportion to population. Charles T. James said there were thousands of poor whites. 70 James Martin, of northern Alabama, spoke of a "large poor population, almost totally with- out employment." 71 Hunt's Merchants' Magazine referred to them as a "mass of unemployed white labor." 72 Many of the advocates of manufactures believed the employ- ment of this class of unfortunates desirable from every viewpoint. They were said to be more than glad to avail themselves of the opportunity to work, even at most moderate wages, at labor deemed respectable for white persons; and, when so employed, to quickly assume the industrious habits of Northern operatives. By employment in factories, they would be brought together in vil- lages, where the influence of church and school could reach them. In this way and only in this way could they be elevated to a state of comparative comfort and independence and social responsibil- ity. From the viewpoint of the prosperity and power of the com- munity at large, the employment of the poor whites would be of incalculable benefit: it would transform thousands of them into productive citizens and enormously increase the wealth of the region. The number of this class in some states was said to be sufficient to work up into goods all the cotton grown therein. This product would be a clear gain; for the employment of the poor whites in factories would withdraw little or no labor from the production of the raw material. How, it was asked, could the South keep pace with the North in the race for power and wealth, "Df Bow's Review, VIII, 518. "Ibid., XI, 133. '"Ibid., VIII, 558. "Ibid., XXIV, 383. "XXII, 649. 53 ] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 53 when so large a part of the total possible labor force was com- paratively idle? 73 Many thoughtful Southerners regretted that so much of the capital, enterprise, and intelligence in the South was employed in directing slave labor to the almost complete neglect of a large part of the white population. 74 Thomas P. Devereaux, a large slaveholder of North Carolina, thought it the great evil of slav- ery, that it rendered a mass of white producing ability more than unproductive; and there is evidence indicating that many shared his opinion. 75 But whether slavery was responsible for the exis- tence of the poor white class or not, its opponents in the North and elsewhere charged it with that responsibility, and it would seem that the defenders of the institution should have welcomed every opportunity for remedying the evil and proving the charge unfounded. Too many slaveholders, however, opposed manufac- tures on the very ground that they would aid in developing a class consciousness among white labor, which would be hostile to slavery. In fact, it was already evident that such a class consciousness was developing, particularly in the cities and towns. It manifested itself in a movement to drive the slaves from the cities and from mechanical employments, and restrict them to agriculture. In 1849, C. G. Memminger wrote Hammond that the opinion was gaining ground in Charleston and even in the low country, that slaves should be excluded from mechanical pursuits, and their places filled by whites; and that there would soon be a formidable party on the subject. 76 Several years earlier, a bill had been drafted and presented to the North Carolina Legislature to limit the em- ployment of slaves in mechanical callings, but had been met and defeated by the objection that it interfered with the rights of the slave owners; an act of the Georgia Legislature, December 27, 1845, forbade negro mechanics to make contracts. 77 In the cities there was constant friction between the white stevedores, porters, "See notes 68-72. "De Bow's Review, XI, 135. "Devereaux to Hammond, April 17, 1850, /. H. Hammond Papers. Cf. So. Quar. Rev., VIII, 449 if.; XXVI, 446. "Memminger to Hammond, April 28, 1849, /. H. Hammond Papers. "Devereaux to Hammond, April 17, 1850, ibid. 54 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [54 draymen, and mechanics and the negroes. 78 Everywhere there was opposition to slaves learning trades. 79 The slaveholders feared this self-assertion of white labor; for, as Memminger put it, were the negro mechanics and operatives driven from the cities, whites would take their places, everyone would have a vote, and all would be abolitionists. Those urging manufactures, he thought, were aiding and abetting the free labor party, which was the only one from which danger to slavery was to be apprehended. 80 General A. H. Brisbane, who was leading in the agitation in behalf of manufactures in South Carolina, and who was instrumental in founding a mechanics' institute in Charleston, complained of the opposition he met at every turn from the slaveholders of Charleston and the seaboard. 81 On the other hand, some slaveholders thought more danger was to be apprehended from the poor whites under existing conditions than if they should be brought together in cotton factories with constant employment and adequate remuneration. In the latter case, they would see that their occupation depended upon the preservation of a system necessary for the production of cotton. In the opinion of Thomas P. Devereaux, if a notion should arise among the poor whites that slavery barred their way to the full en- joyment of the fruits of their labor, deprived them of a market for their produce, and hindered the advancement of their children, the slaveholders would have an enemy in their midst far more to be feared than abolition preachers. 82 Brisbane believed it bet- ter for white labor to develop in the South, where it could see its dependence upon black labor, than in the North, where it could not, and would, therefore, be the fanatical enemy of slavery. Over against the discussion of the desirability of providing em- ployment for the poor whites must be set the discussion of the ~'*DeBow's Review, XXVI, 600, extract from the Report of the Committee on Negro Population of the South Carolina Legislature; ibid., XXX, 67-77. "F. L. Olmsted, Cotton Kingdom, II, 98; Lyell, A Second Visit to the United States, II, 36, 81-83. And see below, pp. 218-220. ""Memminger to Hammond, April 28, 1849, /. H. Hammond Papers. "Brisbane to Hammond, Oct. 8, 1849, ibid.; cf. Gregg to Hammond, Dec. I, 1848. "Devereaux to Hammond, April 17, 1850, ibid. Cf. W. B. Hodgson, of Georgia, to Hammond, Nov. 20, 1850, ibid.; So. Quar. Rev., XXVI, 447; DeBow's Review, III, 188; VIII, 25. See also Fitzhugh, Sociology for the South, 147. 55] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 55 practicability of employing slaves in factories. During the period of overproduction of cotton there was a belief that slave labor engaged in producing the staple was redundant, and that it was desirable to divert some of it to other industries. The division of slave labor between the factory and the field would increase the profits of agriculture and enhance the value of slaves. 83 Slave labor was tried in several cotton factories, notably the DeKalb and the Saluda factory, both of South Carolina, and the alleged success of the experiments was cited as demonstrating that, should agriculture become oversupplied with labor, manufacturing would open channels to draw away the surplus. 84 From some of the comments made, it is hard to escape the conclusion* that many Southerners were interested in manufactures only so long as it ap- peared possible to conduct them with slave labor; when exper- ience finally demonstrated the superiority of white labor, their interest declined. Other men opposed from the start the employ- ment of slaves in factories. It would weaken slavery; for, as one said, "Whenever a slave is made a mechanic, he is more than half freed .... " 86 Moreover, were slaves employed, whites could not be; for whites would not work side by side or in competition with slaves. The movement to bring the spindles to the cotton was almost synchronous with the period of acrimonious sectional controversy over the extension of slavery which began with the annexation of Texas and continued until the general acceptance of the Com- promise of 1850 gave a temporary respite. Southern men were becoming dismayed at the growing strength and vigor of the attacks upon slavery. The growing disparity of the sections in numbers and power was toe striking and too ominous not to excite most serious concern. The old political alliance of South and West could no longer be depended upon, and especially not in the case of the slavery issue, to thwart the antagonistic policies of the North. Leaders, from the great Calhoun down, cast about for means of maintaining Southern rights and preserving Southern equality in the Union. A large minority of the people in the South, "'Richmond Whig, Sept. 19, 1851; DeBow's Review, XII, 182-5. "Richmond Enquirer, Aug. 30, 1850; Charleston Mercury, May 24, 1849; Hunt's Merchants' Magazine, XXIII, 575; DeBow's Review, IX, 432; XI, 319. "Ibid., VIII, 518. 56 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [56 in one state a majority, were convinced by 1850 that the Southern states should withdraw from the Union. Widespread discussion of secession caused consideration to be given to the preparedness of the South for separate nationality. The intemperateness of the sectional quarrel and, especially, the necessity for augmenting the political power of the South, whether to maintain her rights in the Union or her independence out of it, gave a powerful impetus to all movements for promoting the economic development of the South, including the encouragement of manufacturing. The arguments in favor of encouraging home manufactures which were suggested by political necessities or purposes took several forms. One frequently employed was well illustrated by an editorial in the Richmond Dispatch. After one of the instances of interference with the execution of the Fugitive Slave law by the people of Boston, the Dispatch estimated the value of the Boston- made shoes used in Virginia, and suggested that Virginia people should manufacture the shoes used in the state. "That it is time for Virginia to think of doing some such thing the high-handed measures lately adopted in Boston sufficiently prove. As long as we are dependent upon these people, they will insult us at pleas- ure. Let us cut loose from them thus far at least." 86 The reason- ing was weak: If Boston people insulted the Virginians while yet the latter were good customers, would they not more readily do so should the Virginians cease to patronize Boston shoe factories? More logical was the reasoning of J. D. B. DeBow and others who, while recognizing that Southern enterprise might not con- vince the enemies of slavery, said it would prepare the South for the crisis which they professed to believe was inevitable. "We have long ago thought," wrote DeBow, "that the duty of the peo- ple consisted more in the vigorous prosecution of their industry, resources and enterprise, than in bandying constitutional argu- ments with their opponents, or in rhetorical flourishes about the sanctity of the federal compact. This is the course of action, which, though it may not convince, will at least prepare us for this crisis which, it needs no seer's eye to see, will, in the event, be precipitated upon us by the reckless fanaticism or ignorant zeal of the 'cordon of free States' surrounding us on every hand. 'Light up the torches of industry,' was the advice of old Dr. Franklin to his countrymen, on discovering that all hope from the British cab- "Quoted in De Bow's Review, XI, 82. 57] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 57 inet had fled forever. Light up the torches, say we, on every hill- top, by the side of every stream, from the shores of the Delaware to the furthest extremes of the Rio Grande from the Ohio to the capes of Florida." 87 Another and more frequently used argument was that diversi- fied industries would be favorable to a more rapid growth of population in the South, and population was necessary to political power. The North had been growing more rapidly in population and political influence, it was said, because immigration from abroad had gone almost exclusively to that section. This was not because slavery had repelled immigration, but because the South had offered no inducements. Southern agriculture was ill adapted to European labor. And what other industry had the South? The construction of railroads had attracted a few Irish and German laborers; but the demand was insufficient to bring a great number. Let industry be diversified, however, and the South would get a share of the influx from abroad. Northern people might come South. Emigration from the Southern states would be checked. The population of the North would then increase less rapidly, that of the South more rapidly; the relative political strength of the South would thus be preserved. 88 Not all, however, considered immigration desirable. Many feared that immigrants would be hostile to slavery. The diversi- ficationists attempted to overcome these fears. The immigrants could be assimilated and converted into defenders of Southern institutions, they said. In proof of this view they pointed to many men who had come from the North, and were among the staunch- est defenders of the South. They further contended that a large foreign element in the North was a greater menace to slavery than such an element in the South would be; for in the latter it would become convinced of the necessity of the institution. 89 Just as does the fear among the slaveholders of the development of a class "DeBow's Review, IX, 120. Cf. ibid., IV, 211; XI, 680; William Gregg to Seabrook, May 10, 1850, Whitemarsh B. Seabrook Papers; Richmond Whig, Feb. 12, 1851. "Barnard, Oration Delivered, before the Citizens of Tuscaloosa, Alamaba, July 4-th, 1851, 29; DeBow's Review, VIII, 558-60; XI, 319; Hunt's Merchants' Magazine, XXI, 498. "Barnard, loc. cit.; A. H. Brisbane to J. H. Hammond, Oct. 8, 1849, /. H. Hammond Papers. 58 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84<>l86l [58 consciousness among the native white labor, this fear of immigra- tion illustrates the difficulties in the way of creating a public senti- ment in the South favorable to progress along other lines than agriculture. During the secession movement of 1849-1852, which has been alluded to, many Unionists supported the efforts to develop South- ern manufactures, promote direct trade, construct internal im- provements, and otherwise build up the South in an economic way, as a substitute for disunion. Their position was based upon two chains of reasoning: (i) Economic regeneration of the South would tend to preserve the political equilibrium of the sections and thus enable the Southern states to maintain their rights without forsaking the Union. (2) The basic causes for the war being waged against the Union were economic discontent and the belief that the Union had been unequal in its material benefits. The Unionists, in so far as they admitted Southern "decline," at- tributed it to causes not connected with the operation of the gov- ernment or the Union. Successful programs of economic improve- ment would allay discontent and prove their contentions in re- gard to the advantages of the Union. This aspect of the political basis for the agitation in behalf of manufactures will be discussed in somewhat greater detail elsewhere. Although the discussion of the desirability of diversifying Southern industry by no means ceased about 1852, as we shall see, the active agitation in behalf of "bringing the spindles to the cotton" may be said to have come to an end about that date. The explanation of this lies partly in the fact that the comparative prosperity of cotton culture during the fifties weak- ened the force of the economic arguments for diversification, 90 but chiefly in the fact that the agitation no longer was encouraged by reports of large profits and the erection of new factories. Accounts of new enterprises continued to appear throughout 1851, and then ceased almost abruptly. In their stead there began to appear reports of reduced profits, failures, and, later, explana- tions for the sudden collapse of a movement so auspiciously begun. It was not until the later years of the decade that the press again spoke optimistically of the progress of cotton manufactures in the South. William Gregg, who knew more about this sub- "See ch. VIII. 59] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 59 ject than any other man, writing on the very eve of the war, stated that all the progress made in cotton manufacturing in the South during fifteen years was made in "about five years from 1845 to 1850." The meager statistics available tend to sustain this judgment. According to the estimates of contemporary reviewers of the cotton trade, the Southern states consumed a quantity of raw cotton in the year 1849-1850 which was not materially exceed- ed until i859-i86o. 91 During the years 1850 and 1851 the cotton manufacturing industry was suffering a depression. It is probable that, could factories newly built or building in 1850 have operated at full capacity, the total consumption for the year would have equalled that of the years immediately preceding the Civil War. The United States censuses for 1840, 1850, and 1860 may be con- sidered sufficiently reliable to show general tendencies. The value of the product of cotton factories in states south of Maryland was $1,912,215 in 1840, $5,665,362 in 1850, and $8,145,067 in 1860. Thus, while the value of the product nearly trebled between 1840 and 1850, it increased only about 43 per cent during the following decade. The value of the output of cotton manufactures in the United States as a whole was $46,350,453 in 1840, $65,501,687 in 1850, and $115,681,774 in 1860, an increase of 41 per cent during the first decade and 76.6 per cent during the second. 92 The progress made in cotton manufacturing in the South during the 18405 must be attributed chiefly to the unprofitableness of cotton culture during the same period and to the conviction of men with capital that manufacturing would yield a higher rate of inter- est upon money invested. In some cases, it is true, subscription to the stock of cotton manufacturing companies seems to have been made by public spirited citizens prompted more by a desire to benefit their communities or states or to advance the cause of the South than by the desire for profit. To some degree, too, the agitation was instrumental in securing the liberalization of laws affecting joint stock companies, and may have contributed indi- rectly to the development of manufactures. The cessation of progress about 1851 cannot be attributed to any abatement of "See Appendix, Table IV, for estimates of the cotton consumed in the North, South, and West, 1839-1861. "Compendium of the Sixth Census, 361; Compendium of the Seventh Cen- sus, 1 80; Eighth Census, Manufactures, Introduction, p. xii. 60 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [60 interest on the part of the public. Some of the causes for de- pression and failure in the South affected New England factories as well. Others were peculiar to the South, and serve to illustrate the difficulties which had to be overcome there, perhaps among any agricultural people, before new industries could become firmly established. One cause of the depression in the cotton manufacturing indus- try was the sharp rise in the price of raw cotton from 7 cents in June to ii cents in October, 1849, double the price of October, 1848. With the exception of the year 1851-1852, the price of cot- ton remained comparatively high until the Civil War. With the rise in price, the quantity of cotton taken for Northern mills fell from 503,429 bales in 1848-1849 to 465,702 in 1849-1850 and 386,- 429 the following year, while the estimates of consumption of the South and West for the same three years were 130,000, 137,000, and 99,000 bales, respectively. 93 To add to the hardships occa- sioned by high priced raw material, there had been a general fall in the prices of cotton goods, caused partly by the recent rapid extensions of cotton manufactures in the United States and partly, it was said, by the increased quantities of English goods put upon the American market after the Walker tariff of 1846 had become effective. 94 Strangely, the factories of the cotton states seem to have weath- ered the first year or two of hard times better than factories farther north, and Southern men submitted the fact as evidence of the superior advantages of those states for cotton manufactur- ing. 95 In the autumn of 1850, Joseph H. Lumpkin, of Georgia, said that he knew of no bankruptcy in any cotton company in the South; while seventy-one mills were reported idle within thirty " 3 See Appendix, Table IV. "Hunt's Merchants' Magazine, XXIII, 595 ff., Dec. 1850; XXV, 465. m DeBow's Review, X, 93, 143. Virginia and Maryland factories did not escape the hard times. A convention of manufacturing interests meeting in Rich- mond, late in 1850, reported that -of the 54,000 spindles in that state, 7,000 were running at three-fourths time, 8,000 at one-third time, 22,000 at full time but three-fourths wages, while the remainder were either idle or practically so; the whole averaged about one-half time. In Maryland the conditions were worse. Of 28 factories, 8 were idle, and only 2 were running full time. Hunt's Merchants' Magazine, XXIV, 262. The iron industry as well as the cotton manufacturing industry was complaining of depression. The reason assigned was English and Scotch competition. 6l] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 6l miles of Providence, Rhode Island, and numerous others in the North were either idle or upon short time, some Southern com- panies were declaring a dividend of 10 per cent. 96 The Savannah News reported that Southern factories were prosperous, while some Northern mills were closing; and added, "These facts prove what we have often asserted, that we have a decided advantage over the North in the business of manufacturing yarns and coarse cotton goods." 97 Thomas Prentice Kettell, of New York, wrote: "It is the transition of the seat of manufactures from the North and East to the South and West, under which northern manufacturing capital is laboring." 98 But factories in the cotton belt did fail during the years 1850, 1851, and 1852, establish- ments changed hands at much less than the original cost, and the profits of all were greatly reduced. Moreover, Southern factories revived much more slowly than those of New England. Many of them dragged out a sickly existence until a year or two before the war, when they again became prosperous. The example of these factories discouraged further investments of capital. 99 M DeBow's Review, XII, 46. (From an address delivered before the South Carolina Institute at its Second Annual Fair, Nov. 19, 1850.) As late as 1855, William Gregg wrote: "With the exception of the Saluda company and the Charleston factory, there have been no positive failures and very few embarrassed concerns [in South Carolina], and they labored under most of the defects that I have named as elements of embarrassment. There was no failure among the Georgia factories during the terrible pressure of 1850 and '51; they are now, with one or two exceptions, doing well. Those in the vicinity of Augusta, ten miles off, are paying 20 to 30 per cent. The DeKalb factory, near Camden, in our state, is making 15 per cent.; Vaucluse, just above us, is making money. . . ." The net earnings of the Graniteville Company were reported at 8 per cent in 1850, ii l / 2 per cent in 1853, and 18 per cent in 1854. Report of William Gregg, President of the Graniteville Manufacturing Co., 1855, quoted in DeBow's Re- view, XVIII, 788. "Quoted in ibid., XI, 322 (Sept., 1851). "Ibid., XI, 641. It is not probable that Southern mills suffered less than New England mills making the same class of goods. This was notably true of the failures at Augusta, Ga. There canals had been dug, and, it was supposed, enough water power secured to drive the spindles of a second Lowell. Factories sprang up on a large scale. A long chain of changes and reverses followed. Ibid., XXVIII, 483. William Gregg wrote, in 1860: "The failure of the Augusta Mills has done more to put back the progress of manufacturing at the South than any other failure that has taken place." Ibid., XXIX, 229. 62 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [62 Cotton factories in the South experienced difficulties other than the high price of raw material and the low prices of goods. 10 The factories were often cheaply constructed, and the best machinery was not always provided. Several of them employed steam power, which proved too costly and put them under a big handicap from the start. Local pride in many cases had much to do with raising capital and, consequently, in selecting sites. As a result the mills were often injudiciously located with respect to health, steady motive power, and marketing of goods. The labor problem was a difficult one. Negro labor required too much capital, if bought, and proved unsatisfactory in any case. 101 The whites, though they worked for lower wages than the mill operatives of the North, from ignorance and long habits of indolence, were difficult to train and control. 102 Because of the unskilled labor, Southern factories required more efficient superintendents than Northern factories, but did not pay sufficiently high salaries to command them. (The superintendents were in most cases from the North.) There was the difficulty, also, of forcing the products of infant in- dustries upon a market already supplied with Northern and English goods; 103 and there is evidence that New England manu- facturers resorted to quite modern methods in meeting threatened competition from the South. The story was told of a Georgia factory that put upon the market an article known as "Georgia Stripes," which proved very popular. New England mills imitated it with a cheaper article, and drove it from the market. The fact- 100 For discussions of the causes for failure of Southern factories see: (i) Re- port of William Gregg, President of the Graniteville Manufacturing Co., 1855 (pamphlet), also in DeBow's, XVIII, 777-91. (2) Extract from a letter of James Montgomery, an English manufacturer. Ibid., XXVI, 95 ff. (3) Letter from James Martin, a successful cotton manufacturer of Florence, Alabama. Ibid., XXIV, 382-6. (4) Hunt's Merchant's Magazine, XLII, 376 f. (5) William Gregg. "Southern Patronage to Southern Imports and Domestic Industry," in DeBow's, XXIX, 77-83, 225-32, 494-500, 623-31, 771-8; XXX, 102-4, 216-23. 101 Russell, Robert, North America, 295. 10J See Ingle, Edward, Southern Sidelights, 74 ff., for a discussion of wages paid in the South. The best success was had where provision was made for hous- ing the employees, enforcing temperance, and providing schools and religious instruction, as at Graniteville, S. C., and Prattsville, Ala. DeBow's Review, XVIII, 777-90. 10 *Colwell, Stephen, The Five Cotton States and New York (pamphlet, i860). 63] MOVEMENT FOR THE DIVERSIFICATION OF INDUSTRY 63 ory then turned to "Georgia Plains." Samples were sent North; and soon the market was flooded with Yankee Georgia Plains. 104 Southern manufacturers selected sound raw material and made goods of high quality; but their Southern customers apparently preferred low prices to quality, which was more difficult to recog- nize. And, despite statements of Southern writers to the contrary, the probabilities are that the Yankee goods were better in propor- tion to price. 105 Again, the idea was too prevalent that an effort should be made to supply the local demand, and that a little of everything should be made; it would have been better to special- ize. The consumer seemed to prefer goods from a distance to those of home manufacture. "Yankee made," "made in the North," or "just from New York," were advertisements which appealed to the purchaser. Manufacturers frequently complained of the want of home patronage; but, except in times of unusual sectional bitterness, appeals to local pride or patriotism were rath- er ineffective. One of the chief obstacles to the success of Southern establish- ments was the lack of sufficient capital. The factories were too often begun with insufficient capital, were in debt from the start, and maintained no reserve of cash to enable them to buy raw material when the price was low and hold back the product from a depressed market. Frequent items are met in Southern papers telling of consignments of goods to Northern cities. The papers of the South were inclined to boast of such incidents without stop- ping to inquire the reasons for their occurrence. 106 Because of insufficient capital, the cotton manufacturers of the cotton states, as were the tobacco manufacturers of Virginia, were constantly in need of advances. The advances could most readily be secured by drawing upon agents in New York or other Northern cities, who sold the goods. This system meant that the goods sometimes had 1M DeBow's Review, XXIX, 627. 1M Daniel Lord said the Southern people "found the Yankee-made a better article, and deaf to all appeals to their Southern pride and patriotism, would have it." The Effect of Secession upon the Commercial Relations between the North and the South and upon each Section, 17. Edwin Heriot, of Charleston, said the established opinion in the South was that Northern articles were better, although the facts were just the reverse. DeBow's Review, XXIX, 218. M Hunt's Merchants' Magazine, XXXI, 384. Cf. DeBow's Review, XI, 322; F. L. Olmsted, Journey in the Seaboard Slave States, II, 184 (Putnam's, 1904). 64 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [64 to be sold in a depressed market to meet the drafts. Southern manufacturers could not sell directly to Southern merchants or jobbers, because the latter bought on long credit, which the man- ufacturers were unable to extend. Both mill owners and merch- ants experienced difficulty in procuring loans from home banks whether because of inadequacy of banking facilities, or, as some believed, because of banking policy, we will not pause here to inquire. 107 "'On system of advances and long credits and the question of banking facili- ties, in the South, see below, pp. 100-107. CHAPTER III ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT, 1844-1852 Discontent with the economic conditions of the South, absolute and as compared with those of other sections, found expression in the direct trade conventions of 1837-1839. It also was expressed in the agitation in behalf of the diversification of industry. While it cannot be said to have been the sole or even primary cause for the Southern movement which culminated in secession, its influ- ence upon that movement was by no means negligible, especially in its earlier stages. The story of South Carolina nullification, to begin no farther back, can receive only a brief summary here. About 1825 and following years, strong opposition developed in the older planting states of the South, especially South Carolina, to the policy of a high and protective tariff and heavy expenditures for internal im- provements. The basis of this opposition lay not only in the fact that the protected industries and the internal improvements at government expense were in other sections, but also in the ap- parently, or really, impoverished condition of the old planting sec- tion compared with other sections of the Union. In no state were conditions more favorable to the growth of discontent than in South Carolina. Industry was not at all diversified. The price of cotton had fallen. Land values were declining. Population was increasing slowly, if at all. Charleston was making comparatively little progress. These conditions were attributed in great measure to the protective tariff and the extravagant expenditures of the Federal government. Failing to secure a reversal of the objection- able policies, opponents of the tariff hit upon nullification as a remedy. Upon nullification as the issue two parties developed. The State Rights party, or Nullifiers, held nullification to be a constitutional mode of resisting palpably unconstitutional laws, which they considered the tariff laws to be, and thought it justified by the oppression suffered under the tariff. They professed to believe that nullification would result in a repeal of the tariff, but were prepared to resort to the remedy even should war and disunion be the consequences. The Union party, on the other hand, opposed nullification as unconstitutional and certain to lead 65 66 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [66 to war, which could result only in the crushing of South Carolina. Furthermore, many of the Unionists either denied that South Carolina was not prosperous, or, admitting it, attributed the lack of prosperity to other causes than the tariff. After a violent struggle of four years duration a convention was called, which adopted an ordinance nullifying the tariff laws of 1828 and 1832. While Andrew Jackson prepared to employ force, Congress en- acted the Compromise Tariff of 1833. Thereupon the South Carolina Convention repealed the nullification ordinance. In other Southern states there was much sympathy with South Carolina's opposition to the tariff; many citizens accepted in whole or in part the doctrines of the Nullifiers. This sympathy was especially strong in Georgia and eastern Virginia, and quite strong in North Carolina and Alabama. 1 After 1833 the division of the people of South Carolina into Nullifiers and Unionists was largely perpetuated, the former being in a growing majority. The Nullifiers first affiliated with the Whig party, which took form about 1834; about 1838-1840 the great ma- jority of them were led back into the Democratic fold by Calhoun, and continued thereafter to call themselves Democrats. After this latter date the Unionists of South Carolina were to be found in the dwindling Whig party and in what may be termed the Jackson wing of the Democratic party. It was the policy of the leaders of the dominant faction to conciliate and assimilate the Unionist faction; this policy was successful in the main. In other Southern states, particularly the cotton states and Virginia, the large ma- jority of those who had sympathized with the South Carolina Nullifiers in 1832 continued in their devotion to the principles of the nullificationist leaders. Perhaps the majority of this class (Georgia and North Carolina may be exceptions) were aligned with the Whig party during the early years of its history. Most of those so aligned, however, shifted to the Democratic party, either with Calhoun during Van Buren's administration, or later, in Tyler's time. Of those who remained with the Whigs, some were ostensibly converted to Whig principles; others retained J The above statements are based upon standard special works and mono- graphs covering this period, and upon Correspondence of John C. Calhoun; Cor- respondence of Robert Toombs, A. H. Stephens, and Hotvell Cobb; Correspond- ence of R. M. T. Hunter; and other of the more accessible sources. 67] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 67 both their state rights, free trade, and reform principles and their Whig affiliation until almost the end of the Whig party. In the Democratic party the line of cleavage between the Calhoun wing and the Jackson-Benton-Van Buren wing remained fairly distinct until the Civil War. It was the former element which rallied to the support of John C. Calhoun when he came forward in 1843 as the free trade and reform candidate for the Democratic nomina- tion for the presidency. 2 The Calhoun wing of the Democratic party held extreme state rights principles. Furthermore, it had been and continued to be the conviction of this following that (i) the government of the United States was too extravagantly administered; (2) the South- ern people paid more than their proportionate share of the rev- enues and received back much less than their proportionate share in the form of disbursements; (3) they were compelled by govern- ment to pay tribute to Northern manufacturers, shipowners, and merchants, by virtue of the tariff, fishing bounties, exclusion of foreign vessels from the coasting trade, and heavy government expenditures in the North; (4) and these continual and uncom- pensated drains upon the resources of the Southern states were enriching the North and impoverishing the South. No Nullifier would admit that the Southern states had the prosperity or were making the material progress to which their resources, population, and the industry of their people entitled them. "Abolish Custom Houses," wrote Calhoun, in 1845, "and let the money collected in the South be spent in the South and we would be among the most flourishing people in the world. The North could not stand the an- nual draft, which they have been making on us 50 years, without being reduced to the extreme of poverty in half the time. All we want to be rich is to let us have what we make." 3 Such views as "It would be impossible in a study of this scope to develop the statements made in the above summary analysis of the party alignment in the South. They are based upon a wide variety of sources quoted elsewhere in other connections; special mention might be made of the Correspondence of John C. Calhoun and the /. H. Hammond Papers. It is believed the conclusions here presented ac- cord in the main with the evidence and conclusions of Cole, Wh\g Party in the South; Phillips, Georgia and Staff Rights; and Ambler, Sectionalism in Virginia, and Thomas Ritchie. It is believed, also, that evidence presented elsewhere in this study tends to substantiate the conclusions given here. 'Calhoun to J. H. Hammond, Aug. 30, 1845, Calhoun Correspondence, 670. 68 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [68 these were expressed in every tariff debate, in the discussion of almost every rivers and harbors bill, fortifications bill, pensions bill in fact, whenever a proposal was introduced in Congress which involved the raising or appropriation of money. They were presented, as we have seen, in the direct trade conventions of 1837-1839. They came out in almost every comparison of the progress of the North and South and in every defense of slavery; for it was necessary to trace "Southern decline" to other causes than slavery. It was the constant purpose of Calhoun and other leaders to reform the "fiscal action of the General Government." But it had early become the conviction of some of his followers that the gov- ernment was beyond redemption, and that the proper policy for the Southern states to pursue was separation from the North. The bitter feelings engendered and the fears for slavery aroused by the several quarrels over governmental policies affecting that institu- tion had led many to calculate the value of the Union from an economic viewpoint who otherwise might not have done so. A consideration of the benefits and disadvantages of the Union led a number to form the conclusion that disunion was not a con- summation to be dreaded and avoided but a measure which would promote the prosperity, power, and happiness of the South. > An example of their reasoning may be found in a great speech against the Tariff of 1842, which George McDuifie, of South Caro- lina, made in the Senate, 1844. He warned the advocates of pro- tection that there was a point beyond which oppression would not be endured, "even by the most enslaved community in the world." He pictured the Union divided into three confederations the North and Northeast as one, the West as another, and the South- ern states as a third. He showed that The manufacturing States could not adhere to the protective system one year. They would have no revenue, and would be driven to direct taxation; whereas the Southern confederation would become the importing States, receiving in exchange foreign manufactures for their rice, cotton, tobacco, and sugar; that the Southwestern confederation would be exchangers with the South- ern confederation of their products for the products of Europe; for they would never be so foolish as to buy of the New England Con- federation at forty per cent higher in price than need be paid for the same goods in the southern confederation. ... In ten years there would be such a difference that a person absent so long re- turning, would be struck with the change in the condition of these 69] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 69 sections of the country. The West he would see grown up into a great and flourishing empire; the South the seat of commerce and the arts; the great cities of Boston and New York rebuilt in Charleston and New Orleans, and more flourishing than in their original, uncongenial climates. But in New England he would find the prosperity, comforts, wealth, etc., resulting from partial legis- lation all gone: houses falling to ruin, cities deserted, furniture selling by auction, and all the indications of indigence prevailing... 4 McDuffie was arguing for a repeal of the tariff; but others in his state used similar arguments in favor of disunion. During the short-lived Bluffton movement, to which reference has already been made, disunion sentiments were openly expressed. Judge Langdon Cheves in a long letter to the Charleston Mercury made a thinly veiled argument for disunion; 5 as such it was taken both South and North. 8 A few months later another correspondent of the Mercury in an article headed,"Reflections on Re-perusing Judge Cheve's Letter," put the case for secession without any indirec- tion whatsoever. "The institutions and municipal policy, and geo- graphical position, and popular feelings and pursuits of the north and south can never harmonize as one people. Speak it out for it is spoken sub rosa in every group of domestic and political coterie that the sections divided by interest can never assimilate in sentiment and national amity." 7 Both Cheves and his reviewer described how separation would promote the prosperity of agri- culture and commerce in the South. The saner leaders in South Carolina, at the time of the Bluffton movement, were insistent that any measure taken, whether seces- sion or nullification, must be taken by a united South, and they labored under no delusions in regard to the attitude of the South as a. whole. In the spring of 1844 the cry, "Texas or Disunion," had awakened response in several Southern states; 8 but as soon 'Cong. Globe, 28 Cong, i Sess., 206 (Jan. 29). 'Niles' Register, LXVII, 49 ff. 'A Reply to the Letter of the Honorable Langdon Cheves, by "A South- erner" (pamphlet); Adams, J. Q., Memoirs, XII, 91. T April 4, 1845; Niles' Register, LXVIII, 88 ff. *Ibid., LXVI, 313, meetings in South Carolina; ibid., LXVI, 123, quoting the New Orleans Tropic; ibid., 229, 312, accounts of meetings in Barn- well District, South Carolina, and Russell County, Alabama; ibid., 3 1, quoting the Richmond Enquirer, and other Southern papers; ibid., LXVI, 405, disunion meetings in Lawrence county, Alabama, and in several districts in South Caro- lina; Benton, Thirty Years' View, II, 613-619. 70 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-186 1 [70 as it had achieved its purpose of securing the Democratic nomina- tion for the presidency for a Southern man who was sound on the Texas issue, the Democratic leaders proved most anxious to clear themselves of any taint of disunion which the Whigs tried to fix upon them. 9 The Charleston Mercury admitted that other states would not join South Carolina in resistance. 10 General James Hamilton wrote in a public letter: "I cannot but express my be- lief that South Carolina is not now ready for separate action, nor the southern states for a southern convention." He expressed the same view privately. 11 Langdon Cheves suggested that, instead of South Carolina undertaking separate resistance, an active propaganda be conducted throughout the South to develop among the people a feeling of unity and a sense of their oppression. He would have had a course followed similar to that pursued in the Thirteen Colonies prior to the American Revolution: "Let asso- ciations be formed in every southern, and, if possible, in every southwestern state, and let them confer together and interchange views and information; let leading men through committees and private correspondence collect, compare, and concentrate the views of men in their respective states, and when ripe for it, and not before, let representatives from those states meet in convention, and if circumstances promise success, let them then deliberate on the mode of resistance and the measure of redress." 12 It became the settled policy of certain South Carolina leaders to bring the Southern states together in convention, to break down party dis- tinctions throughout the South, as they had largely been broken down in their own state, and to "fire the Southern heart." There was little in the course of events during the next several years to modify the views of men of the South Carolina school or to deplete the ranks of the disunionists. The Walker tariff, the Independent Treasury, and the veto of rivers and harbors bills 'Niles' Register, LXVI, 313, 347, 369, 391, 406, 411, quoting the Richmond Enquirer as denying connection with the "Texas or Disunion" cry and proposed Southern convention at Nashville; ibid., LXVI, 313, 346, and the National In- telligencer, July 23, on the meeting in Nashville to protest against the proposed "Texas or Disunion" convention; National Intelligencer, July 27, Aug. 10, n. 10 Aug. 9, 1844, "Our Position and our Pledges," in Niles' Register, LXVI, 406 ff. "Ibid., LXVI, 420; Hamilton to Hammond, Oct. 4, 1844, /. H. Hammond Papers. "Niles' Register, LXVII, 49. 71 ] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT "Jl pleased but did not satisfy the free trade and reform element. Then with the introduction of the Wilmot Proviso, 1846, there began an acrimonious struggle over slavery which continued al- most without interruption until about 1852, when the general ac- ceptance of the Compromise of 1850, and the defeat of efforts to resist it, ushered in a short period of relative calm. The disposi- tion evinced by the majority in the North to exclude slavery from the territory acquired from Mexico and other manifestations of hostility to the institution, together with the growing political pre- ponderance and unity of the free states, caused the majority in the South to fear for the security of slavery and other substantial Southern interests. Southern leaders were put to' it to know how to meet the issue. Under these circumstances disunion was fully canvassed as a remedy, immediate or ultimate. The long debates in Congress, the accompanying discussion in the press and from the platform, the Southern conventions at Nashville and their preliminaries, and, finally, the contests waged in several states between those who favored acquiescence in the compromise measures and those who counselled resistance, af- forded ample opportunity for a thorough discussion of the ad- vantages and disadvantages of the Union and the expediency and propriety of secession. The discussion revealed how extensively the ideas were held that the Union was a detriment to the prosper- ity and economic progress of the South, and, the corollary, the South would be more prosperous and develop more rapidly were the Union dissolved. The discussion also, no doubt, contributed to the spread of these ideas. It also revealed, and no doubt increased, the number of those who, while they did not look for disunion to bring positive economic advantages, expected it to bring no serious disadvantages in short, those who could look to disunion with complacency, for whom it "had no terrors." Very early in the struggle over slavery in the territory to be acquired from Mexico declarations were given in the South of a determination to resist the adoption and enforcement of the Wil- mot Proviso "at all hazards and to the last extremity." 13 As the "Virginia resolutions, Mar. 8, 1847, in Ames, State Documents on Federal Relations, 245-7, were the first official declaration. Other state legislatures, as well as party conventions, and numerous meetings of citizens adopted similar resolutions. See Hamer, Secession Movement in S. C., 1847-1852, pp. 5, 6, n, 16 f., 29, 30 f. 72 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [j2 struggle progressed these declarations were renewed, and extend- ed, as the issues were presented, to include other threatened acts of Northern aggression. To prove that these were not merely idle threats, Southern men talked long and angrily of Southern rights and Southern honor and pictured the ruin that would be brought to the South by abolition which they professed to believe would be the ultimate consequence of restriction of slave territory and loss of the sectional equilibrium. Many also endeavored to dem- onstrate that the South could safely stake the Union upon the issue of the struggle, because the South would suffer very little, if not actually gain, from a dissolution, while the North stood to lose so much in the event that she would yield rather than permit the Union to be destroyed "calculating the value of the Union," this was termed. After the election of 1848 and after the Taylor administration had seemed to show anti-slavery leanings, the task of calculating the value of the Union was undertaken in earnest. In the press, in numerous pamphlets, in Congress, during the debates on the compromise measures, threats of a dissolution in case the South should be denied justice were reenforced by more or less elabor- ate comparisons of the economic advantages or disadvantages of the Union to the various sections. Many of those who thus cal- culated the value of the Union were conditional disunionists. They professed to be ready to stake the Union upon the satisfaction of their demands. In all probability their demands would not have been so great or so firmly made, had they attached greater value to the Union; nevertheless, they intended to preserve the Union if it could be done without too great sacrifice. But another class was in evidence during the crisis, the disunionists per se, who favored disunion irrespective of the character of the settlement of the pending questions of conflict. They would have seized the op- portunity to demand guarantees of the North which they would have had no expectation of securing. In their opinion the interests of the two sections had become so diverse that they could no longer live amicably under one government. The Union had be- come a disadvantage to the South: she would be more peaceful, happy, and prosperous out of it. As might be expected, the first manifestations of this ultra sen- timent were in South Carolina. As early as November 2, 1848, H. W. Connor, of Charleston, wrote Calhoun that he believed "there 73] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 73 has been and probably still is a design to revive the old Bluffton move with the same motive and end." 14 ' The following February, J. H. Hammond expressed to Calhoun his belief that the crisis was at hand. 15 In the summer of 1849 the South Carolina Telegraph began openly to agitate for a dissolution of the Union; and by early in 1850 nearly every newspaper in the state was advo- cating disunion. 16 The Charleston Mercury expected it. 17 Mean- while Governor Seabrook was in correspondence with the govern- ors of other Southern states relative to what action they might be expected to take if the Wilmot Proviso or other objectionable measure should be adopted by Congress. 18 Georgia newspaper editors, in the summer of 1850, boldly inserted communications in their columns, without any marks of disapprobation, openly advocating disunion. Prominent leaders like Joseph H. Lumpkin, William L. Mitchell, W. F. Colquitt, A. G. McDonald, and Joseph E. Brown were known as disunionists, per se. ig John B. Lamar wrote Howell Cobb that if it were not for Cobb's influence Geor- gia would be more rampant for disunion than South Carolina ever was. 20 There were disunionists per se also in Alabama, Missis- sippi, North Carolina, Virginia, and Tennessee. It was this disunion element chiefly which was responsible for the meeting of the Nashville Convention of June 1850. The idea of getting the South together in a Southern convention was an old one in South Carolina at least. 21 After the conflict over the Wil- "Calhoun Correspondence. Cf. Hamer, op. cit., 26. "Letter of Feb. 19, 1849, Calhoun Correspondence. "National Intelligencer, Feb. 15, 1850. "Ibid., loc. cit. "Gov. W. D. Mosely, of Fla., to Whitemarsh B. Seabrook, May 18, 1849, Seabrook MSS. "I do not now see any other executive to whom to address your- self besides those you have already approached." Franklin H. Elmore to Sea- brook, May 30, ibid. "John H. Lumpkin to Howell Cobb, July 21, Toombs, Stephens, Cobb Cor- respondence. '"Letter of Feb. 7, 1850, ibid. "Unionists had proposed a Southern convention in 1832 as a substitute for nullification. Boucher, Nullification Controversy in South Carolina, 197-203. It was discussed in 1835-1838, when the questions of abolition literature in the mails, abolition petitions in Congress, and kindred questions were causing angry controversy. Calhoun to Hayne, Nov. 17, 1838, Calhoun Correspondence; Ambler, Thomas Ritchie, A Study in Virginia Politics, 173; Benton, Thirty Years' View, 74 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [74 mot Proviso Lad been fairly joined, Calhoun sounded the views of leading men of his following throughout the South upon the subject. 22 A call could have been secured at any time from South Carolina; but in view of the well known disunion tendencies of that state, it was deemed advisable that it should originate else- where. Finally the call was issued by a delegate convention in Jackson, Mississippi, October, 1849. If the report of Daniel Wal- lace, secret agent of Governor Seabrook, of South Carolina, may be credited, men who were former residents of that state and dis- unionists, were very influential in the proceedings. 23 In South Carolina opposition to the Nashville Convention was almost negligible. The character of the delegates elected, their correspondence, and the comments of the press leave little doubt that it was intended to use the Nashville Convention to promote disunion. 24 In most of the other slaveholding states the call of the convention at first met with hearty response. But opposition soon developed. Thomas H. Benton denounced it as a disunion plot. 25 The Whigs generally condemned it; they distrusted the disorgan- izing proclivities of some of those active in promoting it. The compromising spirit shown in Congress in the early months of 1850 strengthened the opposition to the Southern Convention by making it appear unnecessary as well as dangerous. 26 Six slave states, Louisiana, North Carolina, Missouri, Kentucky, Maryland, II, 700. It was again mooted in 1844, particularly during the "Texas or Disun- ion" agitation. James Hamilton to J. H. Hammond, Oct. 4, 1844, /. H. Ham- mond Papers; Nile/ Register, LXVI, 229, 312, 369 (accounts of meetings in S. C and Ala.); Benton, Thirty Years' View, II, 613-619. "Calhoun to a member of the Alabama Legislature, 1847, Benton, Thirty Years' View, II, 698-700; Joseph W. Lesesne to Calhoun, Sept. 12, 1847, Calhoun Correspondence; Wilson Lumpkin to Calhoun, Nov. 18, 1847; H. W. Connor to Calhoun, Nov. 2, 1848; John Cunningham to Calhoun, Nov. 12; Calhoun to J. H. Means, Apr. 13, 1849. "D. W. Wallace to Gov. Seabrook, June 8, Oct. 20, Nov. 7, 1849, Seabrook A/SS. "A. H. Brisbane to Hammond, Jan. 28, 1850, /. H. Hammond Papers; Na- tional Intelligencer, Apr. 20, May 18, June 5, 1850. Cf. Hamer, op. cit., 46-48. Wm. Gilmore Simms wrote Hammond: "I regard the Southern convention as in fact a Southern confederacy. To become the one it seems to me very certain is to become the other." Quoted in Trent, William Gilmore Simms, 179. "National Intelligencer, Mar. 20, 1850, account of a meeting in St Louis, Mar. 7. M Cf. Cole, Whig Party in the South, 157-62, 168-72. 75] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 75 and Delaware, failed to send delegates. In Georgia a very small percentage of the voters participated in the election of delegates. 27 Western Virginia and several populous counties in the east took no part in the election of delegates, 28 and only six delegates from the state attended the convention. Only South Carolina, Tennes- see, Alabama, and Mississippi were represented by full delega- tions, and in the two last the delegates were appointed by the legislatures. When the Nashville Convention met the disunionists soon saw that any action looking to immediate resistance was impossible, and, therefore, worked for a second meeting. 29 Several disunion per se speeches were made, the most notable being that of Beverly Tucker, of Virginia. 30 The resolutions and the address to the people of the slaveholding states which were adopted declared, in effect, that the compromise measures then pending in Congress were unacceptable and called for the extension of the Missouri Compromise line to the Pacific as a sine qua non. 3i The adjourned session of the convention met in Nashville, November n, 1850, with seven states represented, by delegations reduced in size. 32 Most of the Union men of the first session refused to attend the second, and the disunionists easily dominated it. 33 The resolu- tions denounced the compromise measures which Congress had adopted, and recommended a congress or convention of the slave- holding states "intrusted with full power and authority to deliber- ate and act with a view and intention of arresting further aggres- sion, and, if possible, of restoring the constitutional rights of the South, and, if not, to provide for their future safety and inde- "National Intelligencer, Apr. 11, 1850. '"Ambler, Sectionalism in Virginia, 249; letters of Wm. 0. Goode to R. M. T. Hunter, Mar. 29, Apr. 20, May II, 1850, Correspondence of R. M. T. Hunter. "Hammond to Wm. G. Simms, June 16, 1850, /. H. Hammond Papers. "DeBow's Review, XXXI, 59-69; reviewed in So. Quar. Rev., XVIII, 218- 23. See also Hammond to Simms, June 16, 1850, /. H. Hammond Papers. "The resolutions and the address are in Ames, State Documents on Federal Relations, 263-9. Proceedings in National Intelligencer, June 4-16, 1850. "Proceedings in ibid., Nov. 16. "Perhaps the most noteworthy incident of the meeting was the three hours speech of Langdon Cheves, of South Carolina, advocating secession. This speech was published as a pamphlet and widely used in the state contests over the acceptance of the compromise measures. 76 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [76 pendence." This action was intended to influence the contests then being waged in four states over the Compromise of 1850. After the passage of the compromise measures spirited contests ensued in South Carolina, Georgia, Alabama, and Mississippi be- tween those who would acquiesce and those who would resist. In South Carolina the submissionists or Unionists were in a small minority. The real contest lay between the cooperationists and the separate-actionists. The former believed that South Carolina should secede, but only in case other cotton states should take similar action at the same time. The separate-actionists wanted a convention called to take the state out of the Union, in company with others, if possible, if not, alone. They professed to believe that if South Carolina should secede and the Federal government should undertake coercion, the other Southern states would come to her support; if, as was possible, the Federal government should not adopt coercive measures, South Carolina would be prosperous and happy as an independent nation. The issue was not fairly joined until after the failure of the secession movements in Geor- gia, Mississippi, and Alabama was certain; then the contest be- came very spirited. At an election held October 13 and 14, 1851, to choose delegates to a Southern congress, which the Legislature had called, the cooperationists cast 25,045 votes to their oppon- ents' 17,710 and carried all of the congressional districts but one. 34 This result was interpreted as instructing the delegates to the State Convention, who had been elected in February. The Con- vention accordingly adopted a preamble and a resolution which declared the right of secession and resolved that secession was justified by the course of the Federal government but that South Carolina "forbears the exercise of this manifest right of self-gov- ernment from considerations of expediency only." 35 In Georgia, Governor Towns, acting upon instructions from the Legislature, called a convention to meet December 10 to consider the compromise measures. During the campaign for the election of delegates, the Union party, which favored acquiescence in the compromise, was opposed by a Southern Rights party, which counselled resistance. The great majority of the Whigs and a re- spectable minority of the Democrats supported the Union candi- "National Intelligencer, Oct. 18, 20, 21, 1851; Hamer, op. cit., 123. 15 Journal of the State Convention of South Carolina . . . 1852, p. 18. 77 ] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 77 dates; while the majority of the Democrats entered the Southern Rights party. Under the leadership of Howell Cobb, A. H. Steph- ens, and Robert Toombs the Union party won with a large major- ity of the popular vote and an overwhelming majority in the convention. After this victory the Union party perfected an organ- ization and entered the state campaign of 1851 with Howell Cobb, Democrat, as its candidate for governor. The Southern Rights party nominated as its candidate ex-Governor A. G. McDonald, who had presided over the second meeting of the Nashville Con- vention. Again the Unionists won a substantial victory. Similar events occurred in Mississippi. Upon the passage of the com- promise measures, Governor John A. Quitman called an extra session of the Legislature which, in turn, called a state convention to meet November 10, 1851. A Union party was formed to con- test the election of delegates to the convention and the regular state elections of November, 1851. It was composed of the great majority of the Whigs and a minority of the Democrats. H. S. Foote, Union Democrat, was the nominee for governor. The Union party was opposed by a Southern Rights party, officially designated the Democratic State Rights party, led by Quitman and Jefferson Davis and composed chiefly of Democrats. The Unionists won a sweeping victory in the September elections for delegates to the convention, and elected Foote governor over Jefferson Davis by a small majority in November. The Conven- tion adopted resolutions accepting the compromise measures and declaring secession not to be a constitutional right. 36 In Alabama, Governor Collier refused to call a special session of the Legisla- ture, which might have called a state convention. Sentiment was clearly in favor of acquiescence in the compromise. However, Southern Rights associations were formed, as in other states, and the right of secession was made an issue in the campaign for the election of members of Congress in 1851. The contest in South Carolina evoked the publication of numer- ous long pamphlets, several long and laborious articles in the Southern Quarterly Review, and the proceedings of meetings of Southern Rights associations, as well as voluminous discussion in the press and innumerable stump speeches. Both separate-act- ionists and cooperationists again and again represented secession "Journal of the Convention of the State of Mississippi . . . 1851, p. 47. 78 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840- 1 86 1 [78 not only as a remedy for Northern aggression against slavery (although that was the chief consideration) but also as a measure desirable irrespective of the slavery question. The opponents of separate action demonstrated conclusively that separate secession would adversely aifect the prosperity of South Carolina and, especially, the commercial interests of Charleston, even should it be permitted to be peaceful; but it was a rare voice that spoke of the advantages of the Union. 37 The cooperationists were charged with going beyond the separate-actionists in depicting the evils of the Union. 38 J. D. B. DeBow, then of New Orleans, a strong Southern Rights man, objected to most of the papers and docu- ments issued by the South Carolina press because "they go far beyond the necessities of the case, and frame an argument for disunion at all hazards, even were the slavery question closed up and amicably settled." 39 Early in the contests in Georgia, Mississippi, and Alabama the leaders of the Southern Rights parties saw that the people would not go for secession, and sought to shift the issue from the expediency to the constitutional right of secession; 40 there- after arguments for disunion per se, such as were used so freely in South Carolina, were used rather charily. But the people had opportunity to become acquainted with all the disunionist doctrines. Outside the four states named the compromise measures were "The best arguments against separate secession are in: Speech of Mr. Mem- minger at a -public meeting of the friends of cooperation . . . Charleston, Sept. 23, 1851, . .. ; "Letter from W. W. Boyce to J. P. Richardson, President of a con- vention of the Southern Rights Association of South Carolina held at Charleston, May, 1851," republished in National Intelligencer, Nov. 13, 1860; The Letters of Aricola, by Hon. Wm. Elliott; Letter of Gen. James Hamilton "To the People of South Carolina," Nov. n, 1850, National Intelligencer, Dec. 2, 1850. ^National Intelligencer, Oct. 14, 1851, quoting the Greenville, S. C., South- ern Patriot. DeBou>'s Review, X, 231. 40 This was not a mere abstract question: There was still a probability that South Carolina would secede alone, and the other Southern states would then be compelled to determine their course with reference to the coercion of a seceded state. Furthermore, a general recognition of the right of secession would prepare the way for future contests over its expediency. 79] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 79 acquiesced in without noteworthy contests. 41 Disunionists, espec- ially disunionists per se, were in a small minority. There were such, however, and they presented the disunion arguments. There was considerable discussion of the proper policy to be pursued in case the cotton states should secede, and considerable speculation in regard to the probable effects of separation from the North upon the economic systems of the respective states. Furthermore, disunionists in states most likely to secede indulged in much speculation as to what other states would be included within the boundaries of the proposed Southern confederacy, and advanced arguments to prove that it would be to the interest of Virginia, Maryland, or other particular state to go with the South in the event of a dissolution. Men in the states which were the subjects of such speculation had to take cognizance. In analyzing the arguments of an economic nature which were used in behalf of secession or in behalf of taking advanced ground in the sectional struggle, it is not necessary to specify whether they were used by conditional disunionists or unconditional dis- unionists. The arguments used by the one class differed little from those used by the other; furthermore, it is not always easy to classify any gi^n individual on this basis. The most elaborate calculation of the value of the Union made during the crisis may be found in a long and well-written pamph- let, published early in 1850, entitled, "The Union, Past and Fu- ture, How It Works and How to Save It," 42 by Muscoe R. H. "In North Carolina the minority was rather strong. In the Legislature of 1850-1851, resolutions affirming the constitutional right of secession were defeated with difficulty. In the congressional campaign of 1851 the right of secession was an issue; the opposition gained two seats in Congress as a result. Cole, Whig Party in the South, 192; Win. K. Boyd, "North Carolina on the Eve of Seces- sion," in Amer. Hist. Assoc., Rept., 1910, p. 171. Cave Johnson, of Tennessee, heard secession per se arguments in his state. Letter to James Buchanan, Jan. 20, 1850, in St. G. L. Sioussat, "Tennessee, the Compromise of 1850, and the Nashville Convention," Miss. Vol. Hist. Rev., II, 313-47. "Published anonymously in Charleston, 1850; republished, several years later, in DeBow's Review, XVIII and XIX, passim. The pamphlet was re- viewed by E. Haskett Derby, Boston lawyer, in Hunt's Merchants' Magazine, XXIII, 371-83, and in a pamphlet Reality versus Fiction, Boston, 1850. Gar- nett answered Derby in an article in Hunt's, XXIV, 403-431, "The Union, Past and Future: 'A Brief Review' Reviewed." Derby closed the argument, Hunt's, XXIV, 659-681. For other reviews of Garnett's pamphlet see So. Quar. Rev., XIX, 189-226; DeBow's Review, X, 132-146, article, "The Future of the South," by Thomas Prentice Kettell. 8O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [80 Garnett, of Virginia, a relative of R. M. T. Hunter and Henry A. Wise, and an able and influential politician of the state rights school. Garnett reviewed the slavery struggle, and found that the South had reached a point where she must insist upon "sufficient guarantees for the observance of her rights and her future po- litical equality, or she must dissolve a Union which no longer pos- sesses its original character." He proposed to put before the North what she would lose if the South should be forced to take the latter alternative. He calculated the value which the laws dis- criminating against foreign shipping had been to the North an enormous sum according to his method of calculation. The oper- ation of the tariff, he analyzed in the usual anti-protectionist man- ner, and calculated that between 1791 and 1845 " tne slavehold- ing States paid $316,492,083 more than their just share, and the free States as much less . . . "; and this when, according to his statement, the whole amount of duties collected in the same per- iod was only $927,050,097. In the only other branch of public revenue of any consequence, the proceeds of the sales of public lands, the disproportion of Northern and Southern contributions had been still greater. From the subject of taxation Garnett passed to disbursements. The free states had received much larger donations of the public lands. Of expenditures for collec- tion of customs, for "bounties on pickled fish, and the allowances to fishing vessels," for coast fortifications, for light houses, for the coast survey, for internal improvements, for Revolutionary pensions, and even for the post office system, the South had re- ceived much less and the North much more than her proportion- ate share. The public debt, held mostly in the North, had been the source of yet more enormous benefits to that section. In sum- mary, he said: "The heads of the federal expenditures which we have examined give a fair notion of the rest; and it may be safely assumed, that while the South has paid seven-ninths of the taxes, the North has had seven-ninths of their disbursements." According to Garnett this inequality in the operation of the Federal government as respects the sections would account for the growth of cities and the prosperity of the North. The effect upon the North of a dissolution of the Union would be ruinous. She would have to rely on direct taxation to support her govern- ment. The South on the other hand would pay less taxes and disburse them among her own people. She would conduct her own commerce and that of the great Northwest. "Norfolk and 8l] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 8l Charleston and Savannah, so long pointed at by the North as a proof of the pretended evils of slavery, will be crowded with shipping, and their warehouses crammed with merchandise." The future of Southern agriculture would be equally brilliant. By virtue of her command of the great staple of cotton, her great natural advantages, and her strategic location "midway in the new hemisphere, holding the outlets of Northern commerce, and the approaches to South America and the Pacific, through the Gulf," the Southern confederacy would occupy a powerful position in the world. The pamphlet was concluded with a glorification of slavery and agriculture and a depiction of the demoralizing influences of factories; for Garnett would not encourage manufactures in his free trade republic. More frequently .quoted, perhaps, than Garnett's pamphlet was an article in the Democratic Review, January, 1850, written by the editor, Thomas Prentice Kettell, and entitled, "Stability of the Union." 43 It was a plea to the people of the North not to attack an institution upon which their prosperity so largely depended; it was similar in strain to the pleas frequently advanced by organs of the manufacturing and commercial interests of the North. 44 Kettell said nothing about unequal operation of the Federal gov- ernment, but emphasized the profits realized by the North from manufacturing for the South, carrying her commerce, and acting as her banker. The annual pecuniary value to the North of a union with the South, he estimated in a table 45 containing the fol- lowing items: "Also in DeBow's Review, VIII, 348-363; DeBow, Industrial Resources, III, 357-366. ^See, for example, DeBow's Review, IX, 93-100, quoting the New York Courier and Enquirer; Hunt's Merchants' Magazine, XX, 292 ff., letter of Colonel Alexander Hamilton, of New York. "Democratic Review, XXVI, 13. Quoted in Congress by Thomas L. Cling- man, Cong. Globe, 31 Cong. I Sess., 203 ff.; by Downs, of Louisiana, ibid., Appx., 172; by Averett, of Virginia, ibid., Appx., 396; Thomas L. Harris, of Illinois, ibid., Appx., 411. Mr. Harris said: "But, Mr. Chairman, several gentlemen, both here and in the other end of the Capitol [Senate], have relied upon an article in a late number of the Democratic Review to show that the North is reaping upward of $88,000,000 from its connection with the South, while it is careful not to show that the South derives any benefit from the North." See also Aaron V. Brown, Speeches, Congressional and Political, and Other Writings, 302 (Governor of Tennessee); Charleston Mercury, Feb. 15, 1850, quoted in National Intelligencer, Feb. 20. 82 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [82 Freights of Northern shipping on Southern produce. . .$40,186,178 Profits derived on imports at the North for Southern account 9,000,000 Profits on exchange operations 1,000,000 Profits on Northern manufactures sold at the South. . 22,250,000 Profits on Western produce descending the Mississippi 10,000,000 Profits on Northern capital employed at the south . . . 6,000,000 Total earnings of the North per annum $88,436,178 There was nothing in KettelPs article to indicate that the South- ern people received any pecuniary advantages from their union with the North. Southern men quoted his table not only to show why the North should grant justice to the South, but also what the South would save annually by a dissolution of the Union. Of the speeches in Congress in which the value of the Union was calculated, perhaps the most notable was that of Thomas L. Clingman, Whig, of North Carolina. 46 He dwelt upon the inequal- ity of taxation and disbursements, and told what ample revenues a Southern confederacy could command with a tariff of thirty or even twenty per cent. "Subjecting the goods of the North to a duty, with those from other foreign countries, would at once give a powerful stimulus to our own manufactures." He described the advantages the Southern states possessed for cotton manufactur- ing, and added, "We should thus have that diversity of pursuits which is most conducive to the prosperity and happiness of a peo- ple." John C. Calhoun in his last great speech, March 4, 1850, did not calculate the value of the Union; he did, however, reiterate his conviction that unequal taxation and disbursements had caused that loss of equilibrium between the sections which, he said, was the "great and primary cause" of the belief of the Southern people, "that they cannot remain, as things now are, consistently with honor and safety, in the Union." Unequal distribution of the taxes and disbursements had transferred hundreds of millions from the South to the North. This had increased the population of the **Cong. Globe, 31 Cong., i Sess., 200-207, speech in the House, Jan. 22, 1850; Thomas L. Clingman, Speeches and Writings, 245 ff. Clingman expressed similar ideas in a speech in the House, February 15, 1851, Speeches and Writ- ings, 275 ff. This speech was regarded in the South as the platform of the ultras. See National Intelligencer, Feb. I, 1850. 83 ] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 83 latter by attracting immigration from all quarters and sections. Had the South retained her wealth and her equality in the terri- tories, she would have divided, at least, the immigration. 47 Space will not permit an account of the contents of the numer- ous pamphlets and speeches occasioned by the contests in South Carolina and elsewhere over the acceptance of the compromise measures. One example will suffice to illustrate their tone and temper. John Townsend, a prominent cooperationist of South Carolina, in a vigorous pamphlet entitled, The Southern States, Their Present Peril and Their Certain Remedy, named aboli- tionism as the peril and secession as the remedy; but it was a remedy for more than the dangers threatening slavery. In the usual strain he told of the unequal operation of the Federal govern- ment and its effects. He described the vast resources of the South, and said: How different will be the aspect of things in the whole South, when this tide of wealth is dammed up within our own borders, and made to roll back ajpaong our own people; and when our im- mense capital is employed by our own merchants in establishing a direct trade between our own Southern ports and our custom- ers all over the world . . . The arts will revive, manufactures will spring up around us; our agriculture will rear its drooping head, our commerce will expand, mechanic labor, meeting with ample rewards will pour in upon us, and emigration [sic], no longer dis- couraged by the uninviting aspect of our country will flock to our shores. 48 In the United States Senate, R. B. Rhett, who had been elected to fill the vacancy caused by the death of Calhoun, was led by an attack made upon him by Henry S. Foote, of Mississippi, 49 to make a long speech explaining why he was a secessionist he was the leader of the separate-actionists in his state. He reviewed the "Works, IV, 542-73. **P. 17. Other secessionist pamphlets or articles were: Wm. H. Trescott, The Position and Course of the South; E. B. Bryan, The Rightful Remedy. Ad- dressed to the Slaveholders of the South; [A. G. Magrath], A Letter on South- ern Wrongs and Southern Remedies: Addressed to the Hon. W . J. Grayson in reply to his Letter to the Governor of South Carolina on the Dissolution of the Union. "Foote charged Rhett with having said that he expected, through the agency of the Nashville Convention, by making demands to which he knew Congress would not accede, to break up the Union. Cong. Globe, 32 Cong., I Sess., 96. 84 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM,l84O-l86l [84 history of the struggles over slavery, and charged thaf^the North- ern people were animated by a desire for its final extinction. But the action of Congress with respect to slavery in the territories, he said, was only a sequence in a course of policy inimical to the South which had been pursued many years. "If I mistake not, from the very foundation of this Government to this day, the operation of it in its financial and pecuniary relations, has had but one uniform tendency; and that has been, to aggrandize the North at the expense of the South." He traced the 'history of the tariff from the beginning, and reviewed the whole subject of taxation and disbursements in a manner very similar to that of Garnett's pamphlet. "Is it wonderful," he asked ''that under such a course of policy, the poorest section of the' Union should be the richest, and the South should, with all her vast resources, linger in her prosperity?" He traced the decline of Southern commerce, and estimated the value to the North of the monopoly of the coasting trade. "The South," he said, "is nothing else now, but the very best colony of the North any people ever possessed." 50 Rhett's colleagues understood his speech to be an argument for secession per se. Senator Cass so took it, and condemned it. 51 Senator Mason, of Virginia, declared that his state had no sym- pathy with those who "preferred disunion." 52 Senator Downs, of Louisiana, asked why discuss further the compromise measures when Rhett had himself admitted that he did not find in them sufficient reason to justify the disunion movement which he had set on foot in South Carolina. 53 In the House, E. K. Smart, of Maine, replied in detail, with a yet more imposing array of sta- tistics than Rhett had used, to the latter's speech and to one of somewhat similar tone which had been made in the House by A. G. Brown, of Mississippi. 54 He did so, he explained, because "I have often thought that a fair and candid investigation of the benefits and advantages of this Government, enjoyed by the South, would disarm the spirit of disunion; that our southern friends, by an examination of the facts, would be induced to de- mand less of the North." *Cong. Globe, 32 Cong., i Sess., Appx., 42-8. "Ibid., 32 Cong., I Sess., 146. "Ibid., 32 Cong., i Sess., Appx., 49. "Ibid., 32 Cong., i Sess., Appx., 98. "Ibid., 32 Cong., I Sess., Appx., 464-71. 85] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 85 Unionists did not fail to seek other causes than the quarrel over slavery and the fears for the security of that institution for the existence of disunion sentiment in the South. F. A. P. Barnard, in an address to the citizens of Tuscaloosa, Alabama, said he be- lieved there were causes much deeper than the slavery agitation for the war which had been waged to the knife against the Union. The agitators had seized upon the soreness produced in the Southern mind by the infringement of undeniable rights as the most available means of accomplishing their ulterior designs. He retold the story of South Carolina nullification; the people of that state were still bitter from the old feud, he said. A conviction pre- vailed that the Union had been unequal in its benefits: "Such a conviction has been, is probably at this moment, partaken by very many who feel no disposition to rush into disunion as a remedy. Indeed the impression seems extensively to exist, that, by the operation of the Federal Constitution, through Federal Legislation, the South has oeen made in some sort, tributary to the North." He told of Southern dependence upon the North for manufactures, of the sensitiveness of the Southern people about the matter, and their analysis of the causes of their dependence. "From this condition of things our people have become impatient to be free; and this it is ... more truly than any other existing evil, which has caused the word disunion to be of late so often and so lightly spoken among us, and the thought of what it signi- fies to be contemplated with so little horror." 85 The Richmond Whig thought much of the dissatisfaction in South Carolina had originated in having attributed to the Federal government conse- quences which were rather attributable to the competition of fresher and more fertile states of the South, engaged in the cul- ture of the same staple as herself. 56 The Unionists in the cotton states in their contests with the Southern Rights parties found their best tactics to be to defend the compromise measures, appeal to the patriotism of the ^Oration Delivered before the Citizens of Tuscaloosa, Alabama, July 4, 1851, 12. ""March 5, 1851. A similar statement is in an editorial of March 22. 86 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [86 masses, 57 impeach the motives of Southern Rights leaders, and picture secession as a measure that would bathe the nation in blood. They showed that secession meant division of the South; for the border states could not be expected to secede. 58 In par- ticular localities they pointed out how separation would injure es- tablished commercial and agricultural interests. In general they did not find it necessary tc refute at length the doctrine that the prosperity of the South suffered from an unequal operation of the Federal government. No doubt many shared this view to some ex- tent. Yet there was a fundamental divergence in the views of the two groups as to the Union's economic effects upon the sections. Unionists were inclined to depict the unexampled peace and progress in wealth and strength of the great republic and to con- sider the South a partaker therein. 59 The Mobile Daily Advertiser said Alabama was never more prosperous. "Why cannot secession orators be serious?" 60 Said H. S. Foote of Mississippi: "It is sufficient for us to know that the Union is of inappreciable value to every portion of this widespread Republic; . . . That the gen- eral action of the government has been more or less unequal and oppressive to our local interests of the South, cannot be denied." 61 Particularly in Georgia, the most prosperous of the cotton states, was the plea effective that the state owed its prosperity to the Union. The Richmond Whig ascribed the Union victory in Georgia to prosperity the refusal of the people to be convinced that the Union had inflicted any injury upon them. 62 General James Hamilton, who traveled through the cotton states in the "Henry W. Hilliard said: "The value of the Union which binds these States together is incalculable; its priceless value defies all the ordinary methods of computation; it is consecrated by battles, and triumphs, and glories, which be- long to the past; .... it secures to us innumerable blessings; it looks forward to a future still more prosperous and more glorious than the past." Cong. Globe, 31 Cong., i Sess., Appx., 34. "Speech of Senator Jere Clemens, in Huntsville, Alabama, Nov. 4, 1850, in National Intelligencer, Nov. 10; letter from Joel R. Poinsett to the people of S. C., Charleston Mercury, Dec. 5. * 9 Grayson, W. J., Letter to the Governor of South Carolina on the Dissolu- tion of the Union, p. 8. This is one of the best of the Union pamphlets. '"Quoted in the National Intelligencer, Dec. 6, 1850. "Cong., Globe, 32 Cong., i Sess., Appx., 59, reply to Rhett. "Mar. 5, 1851. 87] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 87 compromise year, made a similar diagnosis; in Georgia and Ala- bama the high price of cotton had neutralized the disunion senti- ment, while Louisiana had "an average sugar crop and would acquiesce." 63 Unionists, in so far as they admitted "Southern decline," were disposed to emphasize explanations for it other than the fiscal action of the Federal government. The majority of them were Whigs, who had, in general, supported those protective and fiscal measures to which disunionists ascribed the woes of the South. The Unionists dwelt upon such causes for lagging prosperity as overproduction of cotton, lack of diversity in agriculture, and the failure to encourage home manufactures. They showed how the older states had suffered from the emigration of their citizens to the richer and fresher lands of the Southwest. Up to this time at least, the Whigs had given mo/e earnest support than the Demo- crats to those movements for the diversification of industry which have been described in previous chapters, and at this juncture they advocated it as a better method than secession for securing the rights and prosperity of the South. 64 The position of New Orleans as an exporting and importing center for the Mississippi valley plainly operated against the growth of disunion sentiment in Louisiana; men of that state in- sisted that the valley could not be divided. 65 Few from Kentucky and Missouri calculated the value of the Union. Humphrey Marshall, of Kentucky, offered an explanation for the strong at- tachment of those states for the Union. There was a region, he said, where cotton and sugar did not grow, and where manufac- tures and navigation were not the only employments. "The inter- ests of that people are identical, no matter whether they live in a free State or a slave State, and they cannot be induced to sacrifice their welfare or their friendship for the triumph of any extreme doctrine about slavery."" 36 Governor Crittenden expressed the same idea: "To Kentucky and the other Western States in the 68 "To the People of South Carolina," in National Intelligencer, Dec. 2, 1850. 84 See Barnard, F. A. P., Oration Delivered before the Citizens of Tuscaloosa, Alabama, July 4, 1851. Cf. Cole, Whig Party in the South, 206-211. "Speech of Downs in the Senate, Cong. Globe, 31, Cong., i Sess., Appx., 171. w lbid., 31 Cong., i Sess., 409. 88 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [88 Valley of the Mississippi, the Union is indispensable to their commercial interests." 07 In North Carolina the disunion per se arguments were well re- futed. The absence of identity of interests between the two Car- olinas was occasionally emphasized. Said Congressman Stanley, Whig: " .... we are invited to contemplate the glories of a Southern Confederacy, in which Virginia and South Carolina are to have great cities, to be supported by the colony or plantation of North Carolina!" 68 Perhaps in no state other than the older cot- ton states was a greater disposition shown to listen to the uncon- ditional disunion arguments than in eastern Virginia. But there were strong deterrant influences: trade both with the North and South; prospects of valuable commercial relations with the West when the great internal improvement system already projected should make Virginia -he "thoroughfare and rendezvous of our great and united sisterhood of states;" 69 and, more important, the devotion to the Union >f the western part of the state, whose economic interests were imilar to those of other parts of the Ohio valley rather than to th" se of the South. 70 It will have been ob.- erved that disunion sentiment and a dis- position to put a low estimate upon the value of the Union were not uniformly distributed throughout the slaveholding states. It is true that the states in which the strongest secession movements developed were those in which the ratios of black to white popula- tion were highest. (However, it is difficult to demonstrate that within such states secession sentiment was especially strong in the black belts.) But the states in which the disunion movements were strongest were also the states most dependent commercially and industrially or, to use Calhoun's phrase, they were the "exporting states." They were the states, too, in which the doc- trine that the Federal government operated to make one section tributary to the other in an economic way had early found wide- spread acceptance. "Coleman, The Life of John J. Crittenden, I, 350-52. Cf. Speech of Henry Clay in the Senate, Cong. Globe, 31 Cong., i Sess., Appx., 127. m lbid., 31 Cong., I Sess., Appx., 409. "Letter from William C. Rives, U. S. Minister to France, in National In- telligencer, May I, 1850. TO Cf. Ambler, Sectionalism in Virginia, 248 f. 89] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT 89 The evidence in regard to party affiliations is, perhaps, more conclusive as to motives. In the South as a whole the overwhelm- ing majority of the Whig party, as we have seen, was Unionist and accepted the compromise measures without much dissatisfaction. It would seem that the disunionists of 1850, and those who con- templated disunion with complacency, were chiefly of the Calhoun wing of the Democratic party; many of them had been Nullifica- tionists. The Union Democrats of 1850, on the other hand, were chiefly of Jackson, Benton, and Van Buren antecedents. In South Carolina the alignment is not diffiicult to see. The Unionists were, in the main, the remnants of the Whig party. Of the leaders of the Union group, J. J. Pettigru, B. F. Perry, Judge John Benton O'Neall, Richard Yeadon, and W. J. Grayson were Whigs, Joel R. Poinsett was a Jackson .Democrat; all had been Union men in 1832. Waddy Thompson, 'j^Vhig, was the one con- spicuous example of a former Nullifier turnjed Unionist. Of the sep- arate-actionists, all the prominent leacjfs who had figured in Nullification days had been Nullifiers; i^ .this category fell R. B. Rhett, B. F. Duncan, F. W. Pickens, I. ^Holmes, W. F. Colcock, A. Burt, and Maxcy Gregg. With one #ception these men had been leaders also of the Bluffton movement of 1844. Of the co- operationists of 1851, the majority of the prominent leaders had been Nullifiers; of this class were A. P. Butler, J. H. Hammond, James Hamilton, William S. Preston, F. L. Wardlaw, and W. W. Boyce. Other prominent cooperationists had been Unionists in 1832; in this class were ex-Governor J. P. Richardson, Daniel E. Huger, Richard I. Manning, C. G. Memminger, and James Ches- nut. Langdon Cheves had been a cooperationist in 1832. All of the secessionists named were Democrats except William S. Preston, cooperationist, who was a state rights Whig. In July, 1850, John H. Lumpkin, of Georgia, wrote Howell Cobb: "All who are for resistance and for disunion will be found in the ranks of the democratic party; and if their history should be known, they will be found out to be old Nullifiers in i832." T1 Other Union Democrats of Georgia complained of those "secession views which have long been entertained by a school of Southern politicians which have always injured and weakened, never bene- "July 21. Toombs, Stephens, Cobb Correspondence. 9O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [90 fited or strengthened the Democratic party." 72 The Union Demo- crats were almost exclusively from the northern counties, which had never accepted the teachings of the Carolina school. Such prominent leaders of the Southern Rights party as C. J. Mc- Donald, George M. Troup, Joseph H. Lumpkin, W. F. Colquitt, H. L. Benning, William H. Stiles, J. N. Bethune, and John A. Jones had long been leaders of the state rights wing of the Demo- cratic party. However, in Georgia perhaps to a greater extent than any other Southern state, the Whig party had retained its state rights element; this element, with exceptions such as J. M. Ber- rien, cooperated with their fellows in the Union movement of 1850. The latter fact probably explains why the Union Convention of 1850 did not deny the constitutional right of secession as did the Unionists in Alabama and Mississippi. 73 In Alabama the nullifying state rights faction went into the Democratic party with Calhoun about 1840; after that time the state rights element of the Whig party was comparatively small. But the cleavage between the Calhoun wing of the Democrats, led by such men as Dixon H. Lewis, J. M. Calhoun, W. L. Yancey, the Elmores, and David Hubbard, and the Jackson wing whose leaders were Wm. R. King, Benjamin Fitzpatrick, Jere Clemens, W. R. W. Cobb, etc., remained clear for years. 74 In 1845 Dixon H. Lewis wrote of the "Calhoun wing of the Party." It was this wing of the party which formed the Southern Rights party in 1851, and sought to prepare the state for secession. The other wing not only allied with the Whigs to form the Union party but denied the constitutional right of secession. 75 In Mississippi the situation was very similar to that in Ala- bama. J. A. Wilcox, a Union Democrat elected in 1851, identified the Southern Rights men of his state, whom he denounced as "John E. Ward and Henry R. Jackson to Howell Cobb, Feb. 28, 1852, in Toombs, Stephens, Cobb Correspondence, "Cf. Hodgson, The Cradle of the Confederacy, 283. n lbid., ch. XI; Garrett, Reminiscences of Public Men in Alabama, 297. The author, in telling why David Hubbard, of Lawrence, a Calhoun man, never attained the senatorship, says: "The same reasons which influenced the Jackson Democracy in withholding their support in former days from the men who came over with Mr. Calhoun, operated against him in these aspirations; " Garrett constantly recognizes the division in the Democratic party. "Hodgson, op. cit., 294-296. 91 ] ECONOMIC ASPECTS OF THE SOUTHERN MOVEMENT QI disunionists, as "old-line Democrats." This term he defined as designating those whom Jackson had driven from the party in 1832-1833. After that year, he said, they had acted with the Whigs until 1840, when they followed Calhoun back into the Democratic ranks. 76 This description is accurate with the exception that it takes no account of a small element in the Whig party which had not followed Calhoun in 1840, but which nevertheless cooperated with the Southern Rights party in 1851. The leader of this party was John A. Quitman, a native of South Carolina, a Nullifier, and a supporter of Calhoun against Van Buren in 1844. In no state can the division in the Democratic ranks be more clearly seen than in Virginia. There the Calhoun men constituted a well defined group. For a number of years they acted almost as a third party holding the balance of power between the Whigs and the Democrats. In 1843-1844 they tried to secure the Demo- cratic nomination for the presidency for Calhoun. In 1847 they were able, by taking advantage of factional fights in the general assembly, to elect R. M. T. Hunter and J. M. Mason to the Sen- ate. Thereafter they gradually tightened their grip upon the Democratic party. 78 But in 1850, and later, leaders still spoke of the "Calhoun wing" or the "States Rights party" almost as if it were a distinct organization. 79 Their strength lay chiefly in east- n Cong. Globe, 32 Cong., i Sess., Appx., 282-285. "Claiborne, Life and Correspondence of John A. Quitman, I, 211-15 a cir- cular written by Quitman for his political friends, 1845. The factional differences in Mississippi may be traced quite readily in the correspondence of Quitman. In 1835, he wrote: "....the people of this state are one-third for Van Buren, one-third Nullifiers, and one-third Whigs." P. 139. In December, 1838, he wrote: "I shall cooperate freely arid boldly with all genuine Republicans, be they Democrats or Nullifiers, in asserting the principles to which I have alluded." P. 167. In 1845: "In politics I hold much the same position as Calhoun and Troup In 1844 I preferred, as I had before and do now, Mr. Calhoun to any other man for the presidency, but I acquiesced in the nomination of Van Buren, and, until the appearance of his anti-Texas letter, gave him my zealous support." P. 214. 7 *These statements are based upon numerous letters in the Correspondence of John C. Calhoun, Correspondence of R. M. T. Hunter, and /. H. Hammond Papers, as well as newspaper material, etc., and agree, I believe, with Ambler, Thomas Ritchie and Sectionalism in Virginia. ^Correspondence of R. M. T. Hunter, especially letters: James A. Seddon to Hunter, June 16, 1848; L. W. Tazewell to Hunter, Aug. 18, 1850; Seddon to Hunter, Feb. 7, 1852. 92 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [92 ern Virginia. Their leaders were very able; among them were R. M. T. Hunter, J. M. Mason, James A. Seddon, Henry A. Wise, Lewis E. Harvie, Beverly Tucker, William O. Goode, Wm. F. Gordon, Willoughby Newton, Richard K. Cralle, M. R. H. Gar- nett, and Edmund Ruffin. It was this wing that supported the Nashville Convention and furnished most of the delegates; 80 in this wing virtually all of the Virginia disunionists and those of disunionist -leanings were to be found in 1850. Now, to be sure, the State Rights party claimed to be cham- pions and defenders of slavery par excellence, as well as of other Southern interests. But this claim was not admitted by their op- ponents, and had no basis in actual property interest in slaves. The Whig party contained at least its proportionate share of the slaveholders. Whig leaders claimed, with justification it seems, that most of the large slaveholders belonged to their party. Whigs had, of course, reasons for supporting the compromise measures originating in the party considerations; for the administration under whose auspices the measures were enacted was Whig. But after all qualifications are made, no explanation of the alignment of the parties and factions in the South upon the question of Union or disunion is complete which does not take in account the previous history and the origin of the parties. "Tucker, Goode, Gordon, and Newton were delegates to the first session of the Nashville Convention, and Gordon was the only representative of Virginia in the second. CHAPTER IV PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE, 1847-1860. Although for a number of years after the direct trade conven- tions of the 18305 no attempts were made to revive Southern foreign commerce comparable to the efforts of those conventions, at no time did the people of the South become reconciled to com- mercial dependence upon the North. The suspension of the dis- cussion of direct trade was due to the general stagnation of busi- ness and the distrust of all enterprise which characterized a period of several years following the commercial crisis of 1837. In 1845 and 1846 there was discussion in Congress and the country at large of the policy of adopting the warehousing sys- tem. The system permitted goods imported from abroad to be placed in bonded warehouses with payments of duties when the goods were withdrawn, unless withdrawn for re-export, in which case no duties were to be collected. The warehousing system met with general favor in the South, and overenthusiastic individuals hailed it as the panacea which would restore Southern foreign commerce. 1 The cash duties system, they said, prevented South- ern merchants, who generally had limited capital and credit, from importing for re-exportation, and gave the advantage to Northern importers of larger means. The warehousing system would enable New Orleans to become the half-way house between Europe and Mexico, and Charleston to conduct the commerce between Europe and the West Indies. According to the memorial to Congress from the New Orleans Chamber of Commerce, the want of a warehousing system had driven the Mexican trade to Ha- vana. 2 J. D. B. DeBow thought that, if there was ever to be any foreign commerce in the South, such a system must have a great influence in bringing it about. 3 Congress enacted a warehousing law, effective August 6, 1846.* Being a step in the direction of Southern Literary Messenger, XI, 508, 567, 577, 584, articles by Lieut. M. F. Maury. 'DeBotv's Review, II, 408. 'Ibid., II, 193. 'Acts and Resolutions, 29 Cong., I Sess., p. 83. 93 94 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [94 free trade, it undoubtedly benefited commerce; 5 but more than a warehousing law was necessary to effect a revolution in the course of Southern trade. With the reawakened spirit of progress in the South during the latter half of the fifth decade, came a general renewal of dis- cussion of direct trade with Europe. This period witnessed a re- vival of prosperity in all parts of the Union. Numerous railroad projects took form, and construction upon a large scale was un- dertaken. With the extension of our national boundaries to the Pacific and the discovery of gold in California, grandiose schemes were conceived for establishing communication with the Pacific coast by rail or water. In the South one manifestation of the new spirit was a revival of the direct trade movement. In 1847 DeBow said the subject of direct trade was once again receiving atten- tion; 6 and numerous long articles in his newly founded DeBow's Review attest to the revival of interest. He republished the pro- ceedings of the Augusta and Charleston conventions and the re- ports of McDuffie, Hayne, Elmore, and Longstreet. "We would recall those scenes and times," he said. 7 But whereas in those times the direct trade movement was pretty much confined to the Atlantic seaboard, now it spread to the Gulf ports and the entire South. Until 1861 nothing was recognized with more stead- fastness and unanimity as a proper element in the policy not only of seaports but of the South as a section than the encouragement of direct trade. It was a subject of constant discussion in the press. Conventions were held to consider plans for promoting it. It held a prominent place in all the sessions of the Southern Com- mercial Convention, which met regularly from 1852 to 1859, and was given consideration in the less regular Cotton Planters' Con- vention. Plans for achieving it demanded consideration from chambers of commerce, city councils, and state legislatures, as well as from individuals. In the fifties, as in the thirties, commercial dependence was be- lieved to be responsible for the transfer of much Southern wealth 'Lieutenant Maury wrote a few years later: "These importers [direct] and the warehousing system are recovering back for the South a portion of the direct trade." DeBow, Industrial Resources, III, 14. "DeBow's Review, III, 557. ''Ibid., Ill, 558. 95] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 95 to the North in the form of profits; as in the thirties, it was said that the Northern merchants and ship owners reaped large profits from importing for the Southern states and conducting their foreign and coastwise commerce. The estimated total of the sums abstracted from the yearly product of Southern industry in the form of importers' profits, interest upon advances, freight charges, insurance, commissions, port and wharf charges, and the expenses of Southern merchants who went North to purchase their stocks, had grown with the nation's commerce and shipping, and, by the processes of Southern arithmetic, had become enormous indeed. Said William Gregg: "It is a hopeless task to undertake to even approximate the vast sums of wealth which have been trans- ferred from the South to the North by allowing the Northern cities to import and export for us." 8 Joseph Segar, of Virginia, cited the report of the Secretary of the Treasury showing the im- ports and exports of the United States for 1856 to have been $314,000,000 and $326,000,000 respectively. "Now the commer- cial profit of this vast amount of business inures almost exclusive- ly to the north. The South has scarcely a say in the matter. She not only surrenders nearly all the profit on the import trade, but our productions the basis of our exports are mostly shipped to Northern cities, and thence reshipped in Northern bottoms to the foreign market, so that she actually loses the factorage on her own productions. Such a state of things is an annual loss to her of numerous millions, and her bitter reproach." 9 Another Virgin- ian calculated, in 1853, tnat Virginia lost $9,539,037.76 annually by "allowing" New York to carry her trade. 10 To such statements as these, and there were hundreds of them, it was not sufficient to reply, as Northern men frequently did, that what the North got was only a fair commercial remuneration. 11 True, people in the South considered the remuneration too great because the indirect course of trade, by reason of the greater mile- age, the extra transhipments necessary, and the mediation of a greater number of middlemen, each of whom must exact a profit, made foreign goods more costly to the ultimate purchasers than 'DeBow's Review, XXIX, 82. 'Ibid., XXII, 515. "Ibid., XIV, 501. "Olmsted, The Cotton Kingdom, II, 301. g6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [96 would the direct course. Many believed they were being ex- ploited by Northern merchants and financiers, made the prey of manipulators, and made to pay extortionate prices. But the rather characteristic reply quoted above portrays inability or unwilling- ness to grasp the chief reasons for dissatisfaction in the South with the manner in which Southern commerce was conducted. As in an earlier period discussed, so in this it was believed that Northern seaports owed their phenomenal growth and prosperity very largely to their control of Southern foreign commerce. It was a logical conclusion that, could this commerce be conducted by Southern seaports, they would enjoy like prosperity. And in the 18505 the people of every Southern seaport of any preten- sions whatever had the natural and laudable ambition to make it a great commercial center. William S. Forrest in his Sketches of Norfolk rather naively related that upon September 26, 1850, the Honorable Henry A. Wise, of Accomac, "spoke with startling eloquence, and most convincing power of argument, of the reason that Norfolk is not already a great city, and of the means by which she may become a great Southern emporium." 12 There was much of this type of eloquence. The public had no reason to be uninformed in regard to the relative advantages and disadvantages of every Southern port. The jealousy of rivals displayed in some of the cities is rather amusing, considering the inconsequence of the majority of them; although it had rather important influence upon the location of railroads in the South, and possibly some small influence detri- mental to the success pf projects for direct trade with Europe. The citizens of Norfolk hoped much from her splendid harbor and strategic location at the entrance of the Chesapeake. Rich- mond, upon the James river, was a larger town, more centrally located with reference to Virginia, possessed of the advantage of being the capital of the state, and her people were determined to make her the commercial capital of Virginia, if not of a much larger territory. The people of North Carolina regretted the "P. 260. The same thought recurs frequently, for example: ''There are many thinking, practical, and intelligent men, who believe that Norfolk, at some not very distant period in the history of the world, will be a great city. Every person, who thinks upon the subject at all, knows well enough that the place is not what it ought long since to have been. P. 281. Forrest quoted Jefferson and Madison upon the future of Norfolk. P. 296, 297. 97] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 97 necessity of resorting to Charleston and Norfolk because of the want of a good port in their own state, and there was discussion of the possibility of making Wilmington a great Southern empor- ium. Charleston and Savannah were the only ports of any conse- quence upon a long stretch of coast line, and were rivals for the trade of several states. In the fifties Charleston was in many re- spects the most progressive city in the South. 13 With the excep- tion of New Orleans, she had more citizens of wealth and better banking facilities than any other city south of Baltimore. Many of her merchants were natives or residents of long standing, and were imbued with a high degree of public spirit. Her chamber of commerce was aggressive and resourceful. On the other hand, Savannah, while she had all the drawbacks of Southern cities in general, possessed certain advantages of location from which much was hoped. She was more advantageously located for se- curing railroad connection with the West. Until the vast possibilities of the railroad for changing the es- tablished course of trade were realized, the citizens of New Orleans never doubted that their city was destined to become the metropolis of America, situated as she was at the mouth of a river which drains half a continent, and strategically located with reference to the West Indies, Mexico, South America, and the Pacific. 1 * Not until after about 1850 did the people of New Or- leans awaken to a realization that the greatness of the city could not be insured merely by permitting time and nature to take their courses, but that they must resort to the methods less favored cities employed. Then the city government was reformed; radiat- ing railroads were projected, and their construction was pushed vigorously. One, the New Orleans, Jackson, and Great Northern aimed at the Ohio; the other, the Opelousas and Western, pointed toward the west and was intended to be the first span of a road to the Pacific. Great interest was taken in projects to establish com- munication with the Pacific by way of the Isthmus of Tehuan- tepec. The rivals of New Orleans were not neighboring cities on 13 Cf. Cordoza, J. N., Reminiscences of Charleston, 1 866; Trenholm, W. L., The Centennial Address before the Charleston Chamber of Commerce, llth Feb., 1884. "Cf. Cable, Geo. W., History and Present Condition of New Orleans, Tenth Census, XIX, Pt. II, 213-95. 98 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [98 the Gulf, although citizens of Mobile regarded her as one, but cities of the Atlantic seaboard which were being connected with the Mississippi valley by railroads and inland waterways. Mobile was the only other Gulf port of any consequence; her ambitions far exceeded her legitimate expectations. John Forsyth told of the aspirations and the sad deficiencies of Mobile in the same breath: "Mobile is but a chrysalis of commerce .... She stands trembling at the portals of a grand destiny which she has not the courage to enter, and paralyzed by the coward fear that the splendid columns and gilded domes, the sapphire pavements and rubied windows of the temple of commercial grandeur, are not for her enjoyment and realization." 15 This, of a town of about 25,000 inhabitants. It was, then, from chambers of commerce, boards of trade, merchants, editors, and public spirited citizens and officials of Southern seaports that projects for establishing direct trade re- ceived much, if not most, of their support. But the achievement of commercial independence was represented not merely as a measure which would promote the prosperity of individual sea- ports, but also as one which would greatly benefit the South as a whole; the interest in it was not confined to the seaports but was general throughout the South. The more general reasons why the loyal and progressive South- erners were very desirous of promoting the material development of the section have been given in connection with the account of the movement to bring the spindles to the cotton. 16 It was galling to their pride that their section should be languishing and depen- dent. They wanted a denser population, cities, towns, railroads, development of natural resources, and the social benefits which they believed would follow material development. They wished to prove by the actual accomplishment that, contrary to the con- tentions of its Northern and British antagonists, cities, commerce, manufactures, and the "arts of living" could flourish in a slave society. And, more important, they felt that the security of slav- ery could no longer be safely entrusted to constitutional guaran- tees and adroit political combinations, but that these must be sup- ported by the power of wealth, numbers, and economic independ- "Lecture on "The North and the South," DfBow's Review, XVII, 377. "See ch. II. 99] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 99 ence. If, as was possible, the Union should be dissolved, these things would be essential to national existence. Now direct trade and the retention at home of the "tribute" the South paid New York were expected to supply the capital which would build cities, give a stimulus to manufactures, mining, and agriculture, make possible stronger financial institutions, help finance railroads and other internal improvements, and, by conse- quence, invite immigration and, thus, redress the political pre- ponderance of the non-slaveholding states. According to the re- port of the Committee of Ways and Means of the Alabama Legis- lature, "As the proper adjustment of our foreign and domestic trade, on the principle of economy laid down, involves the value of city, town, and county property, agricultural and manufacturing prosperity, the profits on bank, railroad, and canal stocks, as well as population and political power, it becomes one of the highest considerations to all classes." 17 Furthermore, there were several evils in the Southern economic and social system for which it was believed the establishment of direct trade with Europe would be a specific remedy. One of these was the absence of a permanent mercantile class whose in- terests were identified with those of the South at large both financially and politically. The merchants of most Southern towns, interior as well as seaport, were largely Northern men or foreigners who looked upon their abode in the South as tempor- ary. James Stirling said two-thirds or three-fourths of the com- mercial business was carried on by Northern men or foreigners. 18 Most of the cotton buyers and commission merchants were non- residents; the South was literally overrun by agents and collectors of Northern mercantile houses. "The merchants of the South, like the nobility of Ireland," wrote Lieutenant Maury, "are, for the most part, non-residents. At the season when the Southern staples are coming to market, these flock there from all quarters. When the crop is disposed of, they return whence they came, with their gains in their pockets, and, thus, a continued drain is kept upon that country." 19 No city suffered more in this respect than New Orleans. The wealthy Creoles owned the real estate and lived upon its rental. "DfBotv's Review, XIV, 441. "Letters from the Slave States, 320. "So. Lit. Mess., XI, 588. IOO ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [lOO They were extremely conservative, desired to keep down taxes, and opposed new enterprises. The men who directed commerce were strangers, who had no permanent stake in the city but pre- ferred temporary gains to the future growth of the port. Their earnings were expended or invested chiefly in the North. 20 The busy season of New Orleans extended from October or November to the following spring. During this period thousands of laborers, attracted by high wages, flocked to the city from the Northern states to return thence when the busy season closed. An English observer estimated that of the population from November to May fully a fourth part was migratory. 21 Practically the whole business of Mobile, Alabama commerce, banking, the few manufactures was in the hands of Northern men. Savannah, Georgia, had a large Northern and foreign ele- ment; Augusta was known as a Yankee town the Yankee ele- ment was not transient in this case. Charleston suffered less from transients and temporary residents than any other Southern city or town. Virginia towns, in general, had a more permanent and more Southern population than those of the cotton states. The want, in so many Southern towns of a permanent mercan- tile class thoroughly identified with the interests of the section de- prived the South of a class which, in every community, has much to do with the undertaking of new enterprises. It was largely re- sponsible, too, for the small part cities played in determining state legislative policies. Then, thorough Southerners desired to be rid of the swarms of Northern agents, temporary residents, and mi- gratory population, because they were felt to be unfriendly to slavery. Their presence, it was felt, would divide and distract Southern counsels. Their influence upon native non-si aveholding whites was feared. Another feature of the economic system of the South which was greatly deplored, and which it was believed direct trade with Europe would go far toward remedying, was financial dependence upon the East, particularly New York City. This was coming to be considered a great evil at the time of the early direct trade x DeBow's Review, XI, 77 ff., quoting a speech of James Robb in a Louis- iana railroad convention, 1851. a james Robertson, A Few Months in America, 66. Cf. Robert Russell, North America, 253. During the last decade before the war, however, conditions in New Orleans were considerably improved in this respect. IOI] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE IOI conventions; it was a matter of greater concern in the 18505. The immense commerce of New York was believed responsible for the centralization there of so much of the financial power and oper- ations of the country. If direct trade could be established, the importers' profits saved, and commercial centers built up, the banking institutions of the South would be strengthened, and thus enabled to meet the financial requirements of the section. 22 The Southern people were largely dependent upon New York City for the financing of the marketing of their crops. Every fall when Southern staples began to move, planters and shippers made great demands for cash and credit. Southern banks made such loans as their facilities would permit, and in the case of New Or- leans and Charleston they were by no means small; but the chief burden fell upon New York. To make this clear it is necessary to review briefly the manner in which Southern crops, particularly cotton, were marketed. Vir- ginia products (chiefly tobacco and grain) consumed outside the state were sold mostly in New York, even when destined to be exported to Europe. Of direct exports a large portion was bought and shipped by New York men. 23 Part of the cotton was sold in the ports to speculators and others, many of whom were New Yorkers. The remainder, and perhaps the larger part, was sold in the North or in England through factors and commission mer- chants representing New York or Liverpool houses. The planters or merchants received advances upon, or payment for, their cot- ton chiefly in the form of sixty-day sterling bills or four-months New York drafts. These bills and drafts were discounted by Southern banks and forwarded to New York, where they went to pay the debts of Southern merchants and others or to secure cash with which to purchase the other bills which came flooding in as the staples went forward. Sterling bills were bought in New York, of course, because there came the larger proportion of the imports and there normally was the demand for bills. Exchange was fre- "DeBow's Review, XIV, 441; remarks of Mr. Wheeler in the Virginia House of Delegates, Richmond Enquirer, Dec. 10, 1852; D. M. Barringer, of N. C., in the Old Point direct trade convention, ibid., Aug. 3; H. C. Cabell, of Virginia, Hunt's Merchants' Magazine, XLII, 323. 23i 'Letter of a Southern man to Governor Wise of Virginia," Richmond En- quirer, Jan. 9, 1856; editorial, ibid., Dec. 17, 1852. IO2 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [lO2 quently in favor of the South (especially was this true in the case of New Orleans), and at such times great sums of specie flowed South to find their way back to the North during the dull seasons of the year. 24 It is evident that the moving of the cotton crop and, in a large measure, the price the planter received, depended upon the ability and willingness of New York to buy New York drafts and sterling bills. This was strikingly proven at the time of the financial crisis of 1857. The effect of the crash can best be studied at New Or- leans, the greatest cotton exporting port in America. The crop of 1857 was short, and the price was expected to be high. Factors, finding money easy, "put out their acceptances" with a liberal hand, expecting the crop coming in to meet all engagements. Cot- ton went on the market at 16^/2 cents, with sterling selling at ioo,}4 to 109^. On September 25 word came from New York that exchange was almost unsaleable. Money became tighter and tighter; sterling fell to 92^2-97; and presently banks refused to take it at any price. Cotton buyers withdrew from the market. A large portion of the cotton crop sold for several cents less than the promised price. 25 The crash brought the evils of financial dependence home to the South as they had never been brought before. Southern journ- als and writers pointed out that the South had not been respon- sible for the panic. There had been no speculation in the South, they said. True, she had embarked largely upon railroad build- ing, but because of the scarcity of capital the building had been sanely and economically done. The South was in a position to enter upon a flood-tide of prosperity, "And yet and yet almost in the twinkling of an eye, with the suddenness of an earthquake, and unexpectedly as a stroke of lightning from a cloudless sky, cotton was struck down, and became almost unsalable in the "Kettell, Southern Wealth and Northern Profits, ch. VII; Hunt's Merchants' Magazine, XXIX, 60; XLII, 318; report of a committee of the Cotton Planters' Convention, Macon, 1858, in DeBow's Review, XXV, 713 f.; Stone, A. H., "The Cotton Factorage System of the Southern States," Amer. Hist. Rev., XX, 557-65. "New Orleans Daily Picayune, June I, 1858; Hunt's Merchants' Magazine, XLII, 315, from "Banking at the South with Reference to New York City," by H. C. Cabell, of Virginia. ^Hunt's Merchants' Magazine, XLII, 315. IO3] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE IO3 Southern market." 26 The South lost millions of dollars ($35,000,- ooo, said Senator J. H. Hammond in his "Mud Sill" speech) 27 upon the crop of the year 1857-1858. The New Orleans Picayune pointed out the anomaly of the greatest exporting port in America being "stranded because of a money panic in Wall Street" cotton selling at 10 cents a pound while it was 1 8 or 19 in London. 28 The moral was drawn that, had the South direct trade, there would have been a demand at home for sterling bills, and cotton could have gone forward with- out waiting for the recovery of New York. The Picayune dared hope that the disturbance caused by the panic might result in di- rect trade for the South: "The power on which we have been de- pendent so long has at length given way, and almost without knowing it, we have come or are about to come, actually to realize in practice what has hitherto been considered by many an idle dream direct trade with Europe. And should this step .... result in our permanent emancipation from a system whose ad- vantages are far outnumbered by their disadvantages a system which wrings from us annually, without any return except the loss of influence and of power, millions of hard earned dollars we should think the financial crisis, with all its manifold evils, cheap to us." 29 The immense loss occasioned the South by the crash of Septem- ber, 1857, was but a striking example of the evils of the centraliza- tion of commerce and finance in New York. The cotton states, as did the West for that matter, experienced to a less degree the evils of centralization every fall when the crops were moved. During the idle months funds found their way to New York, there to be used in business or speculation. When the crops of the South and West began to move, there was a tightness in the money market, which operated to depress prices. 30 And this did not signify, as some planters asserted, that New York financial interests were "Cong. Globe, 35 Cong., I Sess., 961. ""Quoted in DeBow's Review, XXIII, 656 f. ^This is a very moderate statement. For a less temperate one see Ibid., XXIII, 657-9, quoting the Vicksburg True Southron. "Kettell, Southern Wealth and Northern Profits, 93, 94. 104 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [l04 interested in forcing down the price of cotton. 31 It was far pre- ferable to be dependent upon the money power of New York than upon the money power of London; for normally New York was interested in keeping the prices up. Since the Southern staple constituted the chief export of the country, and there was a quite steady demand for it in the world's markets, it became the basis for securing credit in Europe. The cotton crop was at once an in- dex to Northern manufacturers and merchants of the South's abil- ity to buy in the home markets and of the nation's ability to pur- chase abroad. The solicitude with which the business interests of New York, especially in time of depression, looked forward to the moving of cotton and speculated as to the crop and the price it would bring, abundantly testifies to the role cotton played in keep- ing the wheels of credit in motion. At the time of the crisis of 1857, New York financial circles considered it essential to revival that cotton continue to move, whatever the price, and hoped the planters would be willing to let it go forward at the low prices shippers could afford to offer. 32 The cotton planters were not the only ones who suffered from the financial dependence of the South upon the North. All who sought to embark in business, to start manufactures, to develop the mineral resources of the country, found themselves handi- capped by their inability to secure proper financial support at home. Most of the railroad bonds, for example, had to be sold either in New York or other Northern cities or abroad. No won- M Mr. Wheeler of Portsmouth said in the Virginia House of Delegates, Dec. 2, 1852: ". . . the price, the worth, the market value of all we and the people we represent own of every kind of property, is dependent upon the speculative pleasure of the Merchants, the Bankers, and Brokers of New York. And why? Because Wall Street can depress the money market when it pleases." Richmond Enquirer, Dec. 7, 1852. See also A. Dudley Mann, DeBow's Review, XXIV, 373. ^Hunt's Merchants' Magazine, XXXVII, 583. Some of the cotton had not been advanced upon, and the planters were able to hold it; but much of the cotton did go forward. The importance of its movement to Northern business was not overlooked in the South. "What saved you?" asked Senator Hammond. "Fortunately for you it was the commencement of the cotton season, and we have poured in upon you one million six hundred thousand bales of cotton just at the crisis to save you from sinking. That cotton, but for the bursting of your speculative bubbles in the North . . . would have brought us $100,000,000. We have sold it for $65,000,000, and saved you." Cong. Globe, 35 Cong., I Sess., 961. 105] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE IO5 der the people of the Southern states, at a time when there was almost a mania for railroad building, when they were becoming aware of the existence of considerable mineral resources and the possession of great advantages for certain lines of manufactures, should chafe at, and try to be free from, the necessity of waiting for the favor of distant money markets before entering upon a career of expansion. Said a correspondent of the Charleston Courier, 1854: "At present our principal sources for obtaining funds are through the capitalists of the North and Europe. So long as we are thus dependent, so long may we expect to be used for their benefit, and be made subservient to their interests. When they cannot find better investment they will advance to us freely, and leave us when they can find others more profitable." 33 A good illustration of the way in which attempts to inaugurate new enterprises in the South were handicapped by the financial deficiencies of the section is found in the efforts which were made to establish direct trade with Europe; for commercial vassalage was effect as well as cause of financial vassalage. Just as they had done in the thirties, retail merchants in the South bought of Northern jobbers on long credit often twelve months. To com- pete with the Northern jobbers, Southern importers and jobbers would also have to extend the long credits. But while the North- ern jobbers could procure funds upon their long time paper, the Southern importers found it difficult or impossible to discount long time paper in Southern banks. The reference to long credits raises the question whether after all, had it not been for this pernicious system, the credit facilities of the South might not have been sufficient to permit the launch- ing of many more new enterprises than were actually launched. The New Orleans Commercial Bulletin enumerated the greater facilities of the merchants of Northern cities for the extension of long credits as one of the reasons why New Orleans had lost much trade in the South and West: "The twelve months credit system did the business, and attracted an immense amount of Western and Southwestern trade to those cities, which would have otherwise sought this port." 34 In the opinion of the Mobile Tribune the South was bound to the North by long credits: destroy that sys- "April 7, 1854. "Hunt's Merchants' Magazine, XXXIII, 263. IO6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [lo6 tern and there might be some chance for direct trade. 35 In fact, just as in the period of the early direct trade conventions, the long credits system was frequently denounced and deplored, and the people were frequently urged to free themselves from it. Yet, it must be said, the people of the Southern states took long credits too much as a matter of course, and did not adequately realize their viciousness. There was almost no other factor that operated so effectively to retard the accumulation of capital in the South. The Southern people paid for these long advances and paid dearly. They paid in interest. They paid in increased prices of articles consumed; for, because of the precarious nature of much of the Southern trade, risks were great, and Northern merchants insured themselves well against such risks. They paid, often, in the sacrifice in the prices of their staples incurred because of forced sales necessary to procure money to meet their obligations at ma- turity. J. L. Crocheran, of Alabama, said the South put herself at the mercy of speculators by forcing one-third of her cotton into the market in two months in order to pay advances received during twelve. 36 The financial dependence of the Southern states was not credit- ed only to the absence of foreign commerce, cities, accumulated capital, and varied industries; there was considerable dissatis- faction with the banking system. It was thought by some that the banking laws were too conservative in several of the states. The policies of the banks were criticized on the score that they contributed to the centralization at New York. 37 Representatives of the mercantile interests complained that banks were partial to the agricultural interests. It would take us too far from the subject of this chapter to enter into a discussion of the bank laws and banking operations in the several states. It would seem that in ^Hunt's Merchants' Magazine, XXXIII, 264. The dissatisfaction with the long credits system was not entirely confined to the South. Some New York men felt that the Southern trade was hardly worth the risks involved. Ibid., XXXIV, 522, article, "Some Suggestions on Southern Trade." "DeBotv's Review, XXV, 40. ' 7 Cabell, H. C., "Banking in the South with Reference to New York City," Hunt's Merchants' Magazine, XLII, 311-323; letters of "A Southern Man" to Gov. Wise of Virginia, Richmond Enquirer, Jan. 9, u, Feb. II, 1856; Gregg, William, DeBow's Review, XXIX, 495; Kettell, Southern Wealth and Northern Profits, ch. VII; Fitzhugh, Sociology for the South, chs. IX, X. . IO7] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 107 three states, Louisiana, South Carolina, and Georgia, banking facilities were as adequate as the volume of business done would justify; there, too, the bankers pursued enlightened policies. 38 There was undoubtedly great improvement in banking conditions during the fifties. There were difficulties to be overcome before direct importa- tions could be established other than deficiency of capital and credit, the long credit system, or the absence of a thoroughly Southern mercantile class. One lay in the comparatively small amounts of foreign goods consumed in the South. There is no way of calculating accurately the value of the foreign imports consumed in territory naturally tributary to Southern seaports; but the probabilities are that it did not so greatly exceed the direct importations as Southerners generally supposed. Some Southern writers made the palpably untenable assumption that the Southern population consumed foreign goods equal in value to their exports to foreign countries, that is about two-thirds or three-fourths of the nation's exports, or imports. 39 More reason- able was the assumption that the per capita consumption of im- ported goods in the South was equal to that of the North; 40 but even that would seem to have been too liberal. A much higher percentage of the Northern population was urban; and the per capita consumption of articles of commerce by an urban popula- tion is greater than the per capita consumption by a rural popula- tion. Southern writers made much of the number of rich families in the South who bought articles of luxury imported from abroad; but there is no doubt that the number of families who lived in luxury was exaggerated. That the slaves consumed comparative- ly small quantities of foreign goods requires no demonstration. Their clothing and rough shoes were manufactured either in the North or at home. Their chief articles of food (corn and bacon) were produced at home or in the West. The large poor white element in the population consumed few articles of commerce, M Cordoza, J. N., Reminiscences of Charleston, 44 ff.; Trenholm, W. L., The Centennial Address before the Charleston Chamber of Commerce, 31 ff.; Gregg, William, Speech ... on a Bill to Amend an Act entitled 'An Act to authorize aid to the Blue Ridge Railroad Company' .... Dec. 8, 1856, p. 29. "For example, M. R. H. Garnett, The Union, Past and Present, How It Works and How to Save It. Cf. DeBow's Review, XVIII, 294 ff. "Richmond Enquirer, April 23, 1852, letter signed "Self Dependence." IO8 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [lo8 either domestic or foreign. The same is true of the rather large mountaineer element, because, if for no other reason, they lived beyond the routes of trade. Olmsted had these classes in mind when he wrote: "I have never seen reason to believe that with absolute free trade the cotton States would take a tenth part of the value of our present importations." 41 One of the fairest of the many English travelers wrote: "But the truth is, there are few imports required, for every Southern town tells the same tale."* 2 That portion of the proceeds of Southern exports to foreign countries which was not expended for foreign imports was ex- pended for the products of the North and West. The sales from the South into other sections of the Union were sufficient to pay for only a fraction of the commodities purchased there for South- ern consumption. The value of the cotton exported was greater by far than the value of all other Southern exports combined; yet in a normal year less than one-fourth of the cotton went to the North. 43 The exports to the North and West of sugar and mo- lasses, tobacco, rice, grain and flour, timber, turpentine, and naval stores were considerably larger in proportion to the exports of the same commodities to foreign markets; but hardly large enough in the aggregate to pay for the imports from those sections. 44 J. H. Hammond estimated that in 1857 the South sold products abroad to the value of $185,000,000, and to the North and West to the value of $35,ooo,ooo. 45 The latter sum is undoubtedly too small; but a liberal estimate could not place the value of the exports to "Cotton Kingdom, I, 27. ^Robert Russell, North America, 290. **Donnell, History of Cotton, passim. In the year 1854, for example, 737,000 bales of cotton were shipped North as against 2,528,000 exported to Europe. "According to the estimate of the New Orleans Price Current, in the year 1858-1859 four-fifths of the sugar and three-fourths of the molasses exported coast- wise from New Orleans went to Baltimore and points north. DeBow's Review, XXVII, 477. Sugar and molasses were also sent up the Mississippi in large quantities. The exports of these commodities to foreign countries were not large. Of the tobacco exported from New Orleans about three-fourths went to foreign countries. Ibid., X, 448. No other Southern products were exported from New Orleans in large quantities. "Cong. Globe, 35 Cong., i Sess., 961. The value of the cotton alone shipped North in 1857-1858 was about $32,000,000. Hammond, Cotton Industry, table op- posite p. 358. Because of the panic of 1857, the consumption of cotton was less than normal. IO9] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 109 the North and West at much more than 50 per cent of the value of the exports to foreign countries. On the other hand, there was almost universal testimony that Southern purchases of Northern and Western commodities greatly exceeded in value the direct and indirect imports from abroad. Most of the big items of Southern consumption were furnished almost entirely by the North or West. Practically all of the boots and shoes came from Massa- chusetts; coarse cottons came from New England; the agricultur- al implements not manufactured at home came from the North and West, as did harness and saddles, carriages and coaches, wagons, locomotives, and railroad cars, engines, furniture, and numerous other articles. Great quantities of bacon, pork, lard, and corn were shipped from the Northwest down the Mississippi to be consumed in the cotton states. The cotton states also bought large numbers of mules, horses, and cattle in Kentucky and Missouri, states which in the fifties received practically none of their imports, Northern or foreign, by way of Southern ports. 40 In 1839 a committee of the Charleston Direct Trade Convention had found that one-third of the goods consumed in the South were of Northern production; 47 fifteen or twenty years later no one estimated the value of the foreign goods at more than one-half that of the goods of Northern and Western production. Daniel Lord, a Northern writer, said the South imported from the North ten dollars in domestic productions for every one imported directly or indirectly from Europe. 48 The ability of the Southern people to purchase their proportion- ate share of the nation's imports was further diminished, of course, by the payment of those freights, profits, interests, commissions, charges, and expenses which went to Northern men, and which the advocates of a direct course of trade were so anxious to save. Thus the very commercial dependence under which the South ^St. Louis was the distributing center for Missouri and parts of Kentucky and Tennessee. Cincinnati and Louisville were distributing centers for Kentucky and parts of Tennessee. In the fifties these cities received practically all of their foreign and Northern goods from the East by interior routes. Western Virginia traded with Cincinnati and Baltimore. Baltimore was rarely classified as a Southern city by men from farther south. "DeBow's Review, IV, 495. "Lord, Daniel, The Effect of Secession upon the North and the South (pamphlet, 1860), p. 15. IIO ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [lIO chafed was one of the causes for the want of demand which made the establishment of a more rational system difficult. There was logic in the contention of the advocates of direct trade that, could it once be inaugurated, the saving effected would increase the South's ability to buy, and the increased demand would in turn help to firmly esablish the system. The meagre demand for imported goods rendered it necessary for Southern importers to keep assorted stocks and for long per- iods. In the North, on the contrary, the demand was large enough to permit importers to specialize, and sure enough to en- able them to replenish their stocks at frequent intervals. The commerce of a port like New York was so great that it offered a certain market for any cargo and certain freights for any part of the world. 49 Frequently cargoes were solcl at auction in New York and Philadelphia, sometimes at ruinous prices, against which the importers of smaller cities could not compete. But whatever the demand for imported goods in the South, the demand for North- ern goods was much greater. A large number of vessels was en- gaged in the coastwise trade. The same vessels which carried Northern goods to the South also carried the indirect imports of foreign goods. Often Southern merchants went to Baltimore, Phil- adelphia, or New York to lay in their stocks of Northern goods, and while there could buy merchandise of foreign origin as well. 50 "Almost every country merchant who visits Charleston has a through ticket for New York in his pocket," wrote William Gregg." The question may occur, Why did not Southern seaports thrive as distributing centers for the coastwise commerce? The explan- ation lies in part in the fact just alluded to: Many interior merch- ants purchased of Northern rather than Southern jobbers. Gregg attributed this to a preference of the people for goods from New York and to the hostility of banks to the mercantile interests shown by their refusal to extend the support necessary to enable the Southern jobbers to extend the long credits which customers demanded. Charleston jobbers could sell cheaper than New York jobbers, he said, and there was no adequate reason why Charles- *Cf. Richmond Whig, Mar. n, 1851, editorial. "DeBow's Review, XXIX, 500, 556. "Ibid., XXIX, 776. Ill] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE III ton should not become a distributing center even without direct trade. 52 Whether the banks did not support the mercantile inter- ests because they would not or because they could not, it is evi- dent that the Southern jobber and the importer suffered alike in this respect. Another writer said the country merchant bought from the Northern jobber because he knew that the Southern jobber bought his stocks in New York, and he did not wish to pay two sets of jobbers' profits. 53 But there was a deeper reason why the seaports did not grow and prosper as distributing centers : the quantity of goods to be distributed was too small. The commerce of the Southern states was practically limited to transporting a few staples from the interior to the coast and exporting them, and to receiving foreign and Northern goods at the seaports and trans- porting them into the interior. There was little internal com- merce. There was no home market for Southern products. When the first railroads were put in operation, there was general dis- appointment at the lightness of the traffic upon them. There was little to carry but cotton, which is not a bulky article. It is noteworthy that before the Civil War there was hardly an inter- ior town in the South worthy of mention as a distributing cen- ter. In general, Southerners attached too much importance to ex- porting and importing as factors in the growth of cities. They overestimated the part foreign commerce was playing in the progress of Northern cities, not excepting New York, and under- estimated the roles of domestic commerce and manufactures, in- cluding shipbuilding. 54 Today, of the eleven cities in the South having over 100,000 inhabitants each, only three are seaports, and the total population of these three is but 35 per cent of the total population of the entire number. Mercantile business in the South labored under serious disad- vantages also from the great variations, from year to year, in the **DeBow's Review, loc. cit. "Ibid., XII, 300. B4 There were exceptions; see, for example, a speech of James Robb, of New Orleans, in a railroad convention, 1851. "No city ever grew great by commerce alone. Go back as far as they might, select the most favorably located cities in the world, and they would find their prosperity was transient, evanescent, com- pared with that of towns situated in the interior, where industry and labor were cultivated and flourished " De Bow's Review, XI, 78. See also Hunt's Mer- chants' Magazine, XXXIV, 137, quoting the New Orleans Commercial Bulletin; DeBow's Review, XXIX, 630, William Gregg. 112 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [lI2 ability of the planters to buy, resulting, in turn, from the wide fluctuations in the cotton crop and cotton prices. 55 In the seaports it was rendered precarious by the frequent visitations of yellow fever. 56 The unhealthiness of the ports was partly responsible for absenteeism and the general stagnation of business during the summer months, when many merchants went North or to the in- terior. Another reason for cessation of business activity in the summer was the fact that the cotton went to market in the fall and winter. This idleness during a large part of the year, to- gether with the lack of variety and stability in the export trade, goes far to explain why the South did not support a larger mer- chant marine. During the cotton season ships from all quarters were impressed into service, and at its close returned to other em- ployment. 57 The bars in Southern harbors with the notable exception of Norfolk were shallow; and the fast clipper ships, which carried so much of the world's commerce, could not enter. Large vessels were anchored some thirty miles below Mobile, and were loaded and unloaded by means of lighters. 58 A special type of vessel was constructed to carry cotton from New Orleans. 59 New Or- leans citizens were most persistent in appealing to Congress for appropriations for improving the navigation of the Mississippi; but the sums granted were not a tithe of the amount necessary. Elsewhere in the South, the constitutional scruples of congressmen prevented them from demanding the inclusion in rivers and har- M New Orleans Daily Picayune, Jan. 14, 1858. "Norfolk was scourged by yellow fever in 1853. Two out of three of the whites died. Burton, H. W., The History of Norfolk (1877), p. 23. Enterprise in Norfolk received a blow from which it took several years to recover. Third Annual Report of the Merchants' and Mechanics' Exchange of Norfolk, Virginia, Jan., 1860. The same year the plague raged in other Southern towns. In New Orleans it was long remembered as the year of the great plague. There 8215 people died between May 21 and October 31. A vivid description is in De Bow's Review, XV, 595-635. "Kennedy, Joseph P., The Border States, Their Power and Duty, etc. (1860), p. 25. "Olmsted, Cotton Kingdom, I, 283; Hamilton, Peter J., Mobile under Five Flags, 270. 89 DeBow, Industrial Resources, III, 16 113] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 113 bors bills of items for the improvement of Southern harbors. 60 The bill of 1852 appropriated $50,000 for the improvement of Charles- ton harbor. The appropriation was accepted, but proved entirely inadequate. 61 President Pierce vetoed the first general rivers and harbors bill presented to him, 1854, and after that no others were passed before the Civil War, largely because of the constitutional objections raised by Southern Democrats. In 1854 a convention at Wilmington, North Carolina, said to be the largest convention which had been assembled in the state, memorialized Congress in favor of an appropriation for improving the bar at Wilmington. The appropriation was secured by the North Carolina delegation in Congress, William S. Ashe, a staunch Democrat, having charge of the bill in the House. 62 In 1857 the City of Charleston under- took to dredge out the channel in the harbor at her own expense, but the enterprise was soon abandoned. 63 A year later Senator Hammond wrote: "Time, I think, will show that vessels of 1000 tons are as profitable as larger ones, to carry our trade, and these can enter our ports." 6 * The discussion of direct trade included consideration of ways and means to promote it. There were innumerable eloquent ap- peals to the Southern states and to Southern cities to "shake off their lethargy," to "rouse themselves from their slumbers," and to emulate the example of their Northern "sisters." Individuals were advised to devote their time and their capital to an enterprise so well calculated to promote the prosperity of their section. Com- mercial education was declared desirable, and a few professorships of commerce were established. Retail merchants and the people in general were urged to patronize those merchants of Southern sea- ports who imported goods of foreign production directly from '"Senator Benjamin, of Louisiana, stated, 1854, that Virginia had not ac- cepted a dollar of the money voted to her for this purpose during the twenty years preceding. Senator Mason, of Virginia, confirmed the statement. Cong., Globe, 33 Cong., i Sess., Appx., 1201. "Report of the Commissioners Appointed at the Last Session of the General Assembly to Inquire into the Feasibility of Improving the Channels of the Bar and Other Approaches of Charleston Harbor. Nov. 20, 1852, p. 5. "Cong. Globe, 33 Cong., I Sess., 1654, ff. Ashe said the last Legislature had unanimously instructed the North Carolina representatives in Congress to work for the appropriation. ''Charleston Mercury, July 12, 1859. "Ibid., April 12, 1859. 114 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [lI4 abroad in preference to those who bought such goods in the North. A rather strong sentiment developed in favor of the imposition by the state legislatures of discriminatory taxes upon goods of foreign production imported into the respective states by way of Northern ports. 65 As in the thirties, much was hoped from the construction of railroads, particularly those which opened new territory or were calculated to attract the trade of the Ohio valley to Southern ports. More specific were the many projects for establishing steamship lines between Southern and European or South Ameri- can ports and the attempts to induce European interests to establish steamship lines to the South. Before 1839 only a few steamships had crossed the Atlantic. By 1850 the steamship was rapidly supplanting the sailing vessel in carrying mails, passengers, and the lighter sorts of freight. Great Britain had embarked upon a policy of encouraging the develop- ment of a steam marine by granting liberal subsidies, and the United States had followed suit by making liberal contracts with steamship companies for carrying the mails to Europe and else- where. 66 The ports selected as terminii for steamship lines evi- dently had great advantages in foreign commerce over those which had to depend upon sailing vessels alone. There were, for example, the advantages of greater regularity and saving of time; and as the mails and passengers sought the steamlines,- it was natural that the importing business should follow the same routes. 67 Need- less to say New York captured the lion's share of the steamship lines, and thereby increased her hold upon the nation's commerce. These facts explain why so many of the plans formed in the South for achieving commercial independence involved the establish- ment of lines of regular steamers between Southern and foreign ports. In no state were more schemes for rehabilitation discussed than in Virginia. For several years prior to 1850 internal improvements had been an absorbing topic in that state. Among the improve- ments projected or under construction none figured more prom- inently than the Virginia and Tennessee railroad, which was to run "The subjects of patronage of home importing merchants and discrimina- tory taxation are discussed in ch. VI. Cong. Globe, 31 Cong., I Sess., 1860; Bates, American Navigation: the Political History of Its Rise and Ruin, 346. "See Richmond Whig, March 11, 1851. 115] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 115 from Lynchburg to the Tennessee line in the direction of Knox- ville, and was designed to be a link in a chain of railroads from the Chesapeake to Memphis and New Orleans. Another project was the connection of the Chesapeake and the Ohio valley either by canal, as some advocated, or by railroad. Besides increasing the transportation facilities of the sections through which they ran, these roads were expected to bring to Virginia ports, Rich- mond, Petersburg, and Norfolk, trade from the Mississippi and Ohio valleys, and together with foreign commerce, which they would help to stimulate, restore to the Old Dominion the com- mercial position she once possessed. The political crisis of 1850 served to call attention sharply to the dependent position of the South, and lent a strong impetus to movements for commercial independence. At this juncture the Portsmouth Pilot was led to suggest a direct trade convention to meet at Old Point Comfort, July 4, 1850. The Old Point Comfort Convention, while not well attended, enrolled among its delegates some very respectable men of Vir- ginia and neighboring states. 68 The reasons which had brought the delegates together were made very clear by the debates. Thomas L. Preston described the advantages Virginia possessed for secur- ing Western trade. Senator Morehead, of Kentucky, assured his auditors that Kentucky was with the South in interests, feelings, and associations, and preferred railroad communication with Vir- ginia to connection with the North. Congressman Ewing, of Tennessee, gave the warning that the safety of the South depended upon preserving the equilibrium of the sections, which could be done by developing commerce and manufactures in the South. R. K. Meade, of Virginia, emphasized the profits derived by the North from conducting Virginia's commerce, and the saving which would be effected if the South would do her own business. The resolutions adopted by the convention declared it to be the duty of the Federal government to extend as much aid to a Southern mail line to Europe as to Northern lines, recommended state appropriations in aid of a line of steamers, and provided for a committee to memorialize Congress and the Virginia Legislature. In the closing days of the first session of the Thirty-first Congress an unsuccessful attempt was made to secure favorable "Proceedings are in the Richmond Enquirer, July 9, 12, 1850. Il6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [ll6 action upon a bill providing for government aid for lines of steam- ers from California to China and from Philadelphia to Antwerp., A. W. Thompson, a Philadelphia capitalist, was to be the con-' tractor. Senator James M. Mason, of Virginia, moved an amend- ment to the bill stipulating that the Atlantic line should alternate trips between Norfolk and Philadelphia.^ The amendment was accepted by the sponsors of the bill. 69 In the short session of the same Congress (1850-1851) Congressmen Meade and Bocock, of Virginia, tried to secure the passage of a similar bill based upon Thompson's plan and the memorial of the Old Point Comfort Con- vention; but it was defeated, 70 largely because of the opposition of McLane, of Maryland, who was charged with fearing that aid to a Norfolk line might compromise Baltimore's claims to government subsidy for a line of her own, 71 and because of the opposition of one or two Virginia representatives who could not overcome their constitutional scruples against government subsidies. Meanwhile, Thompson, taking advantage of the state of mind in Virginia, had petitioned the General Assembly for aid in establishing the pro- jected line between Norfolk and Antwerp. 72 He stood ready to advance two-fifths of the capital required, provided the state would loan him the use of Virginia six per cent bonds for ten years for the remaining three-fifths. Another proposal submitted to the General Assembly about the same time was that a joint stock com- pany be chartered, three-fifths of whose stock should be sub- scribed by the state, and two-fifths by municipal and private cor- porations and by individuals. 73 A select committee of the House of Delegates reported in favor of Thompson's proposition; but its friends were unable to secure action before the Legislature ad- journed, 1 85 1. 74 In September, 1851, a well attended Mercantile Convention was held in Richmond for the purpose of creating public interest in direct trade and working out a plan in support of which all inter- Cong. Globe, 31 Gong., i Sess., 2051. '"'Ibid., 31 Cong., 2 Sess., -600, 613, 754, 768. "Ibid., 31 Cong., .2 Ses's,,- 601, 613; Richmond Whig, Feb. 25, 1851. McMul- lin, of Virginia, spoke flglainU' the bill. Cong. Globe, 31 Cong., 2 Sess., 758. ""Virginia Document s^i^o-i^i, doc. LXVI. "Ibid., 1850-1851, doc'AxX'. ""Ibid., 1850-1851, doc. LXX; Richmond Whig, March 15, 1851. PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE llj ests and factions in the state could unite. 75 It proved impossible to harmonize differences. The convention divided upon the ques- tion whether a line of steamers should be recommended or it should be left to future investigation to determine which was preferable, steamers or sailing vessels. The latter alternative was adopted. A resolution calling for Federal aid provoked a cleavage along party lines, and had to be withdrawn. Resolutions offered by D. H. London, Richmond importer and president of the Central Southern Rights Association of Virginia, in favor of dis- criminatory taxation of indirect imports were tabled by an almost unanimous vote after an acrimonious debate. The net official act of the convention was a blanket resolution in favor of lines of steamers or sailing vessels to Europe and South America. In May, 1852, the State Senate passed a bill based on A. W. Thompson's plan; 76 but the House of Delegates allowed it to go over to the next session, when, in spite of the support of Governor Johnson, John Y. Mason, and an all but unanimous press, it was defeated. 77 The defeat was due to inability to agree upon the mode and time of lending state aid, and to the rivalry of the little bay ports. 78 It was the same spirit of jealousy which stood in the way of the adoption of a practicable policy of internal improve- ments. The net result of all the discussion and wire-pulling of three years was practically nil as far as foreign commerce was con- cerned; they did serve in a measure the secondary purpose of securing tidewater support for state aid to railroads to the West. Shortly after the Old Point Comfort Convention New York inter- ests established a line of steamships between New York and the Chesapeake; Virginians thought the action had been influenced by the movements in that state looking to the establishment of direct trade. 73 In 1851 Richmond firms began shipping flour to "Proceedings are in the Richmond Whig, Sept. n, 12, and 17, 1851. The report from the Committee of 13, William Burwell, chairman, is in Virginia Documents, 1851-1852, doc. I, p. 41 ff.; also in DeBow's Review, XII, 3041. "Richmond Enquirer, Dec. 7, 1852. "Governor Joseph Johnson's message of Dec. 5, 1853. Virginia Documents, 1853-1854, doc. I. Letter of J. Y. Mason to D. H. London, Sept. 18, 1852. So. Lit. Mes., XVIII, 591 ff. Cf. Richmond Enquirer, Dec. 7, 1852. Mason had once been secretary of the navy. "Forrest, Wm. S., Sketches of Norfolk, 296; Richmond Enquirer, Apr. 30, 1852. '"'Ibid., Dec. 10, 1852. Cf. DeBow's Review, XIV, 501. Il8 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [ll8 Rio de Janeiro and importing hides, coffee, and other South Ameri- can products. This trade had attained some importance by i860. 80 While these plans and projects were being debated in Virginia, projects elsewhere had come to naught. The people of South Carolina late in 1850 were considering secession. The time was considered auspicious for inaugurating communication with Europe by a line of steamers. A number of citizens of Charleston secured from the State Legislature a charter for the South Carolina and European Steamship Company to build two steamers to ply between Charleston and Liverpool. Subscription books were opened and the stock promptly taken. One of the steamers, the South Carolina, was built at Green Port, Long Island and proceeded to Charleston. After loading, it was found she could not pass the bar. The vessel was sold, and the project abandoned. 81 The only line of steamships between Charleston and a foreign port before the war was the mail line to Havana, established in 1847 and owned by M. C. Mordecai, of Charleston. The mail steamers between New York and Chagres touched regularly at Charleston and Savannah. The Alabama Legislature, 1852, chart- ered the Alabama Direct Trade and Exchange Company with power to own ships, buy and sell produce and manufactures at home and abroad, receive deposits, deal in domestic and foreign exchange, and make advances on produce, manufactures, and merchandise. 82 No tangible results followed. Considerable interest was manifested throughout the South, 1852-1854, in a proposal to establish a line of steamers between some Southern port and the mouth of the Amazon river and in the question of the free navigation of the Amazon. Peru and Bolivia, upon the headwaters of the Amazon, declared the river open to the commerce of the world, but Brazil refused to allow foreign vessels to navigate it. Lieutenant M. F. Maury, Superin- tendent of the Naval Observatory at Washington, became inter- ested in the subject and memorialized Congress, May, 1852, to establish a line of mail steamers between Norfolk, Charleston, or Savannah and Para. He further suggested that diplomatic efforts ""DeBow's Review, XII, 32. "A. Brisbane to Hammond, Feb. 25, 1851, /. H. Hammond Papers; DeBow's Review, X, 203, 315; XVIII, 68; National Intelligencer, Oct. 18, 1851; Richmond Enquirer, June 7, 1853. "DeBow's Review, X, 445-47; XIII, 318; XIV, 437-49. 119] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE IIQ be made to secure the free navigation of the Amazon. 83 He appealed to Secretary of State Webster to take the matter up, but Webster refused to move. 84 A series of long articles by Maury on "Amazonia" was published in DeBow's Review and the leading newspapers of the South. 85 Maury presented the subject in the Southern Commercial Convention at Baltimore, December, i852. 86 The subject was given consideration at the sessions of the Commercial Convention in Memphis and Charleston, 1853 and 1854; both endorsed the project for a line of mail steamers. 87 Maury represented that the Amazon valley would be settled and developed and an immense commerce would grow up between the region and the United States. The South was more advantageous- ly located for such a commerce than was the North. Commerce with South America would effect the commercial regeneration of the South. It was this possibility which awakened so much inter- est in the Amazon among Southerners. 88 From time to time all through the decade the opinion was expressed that the South should "look to the south" rather than to Europe in her efforts to develop a foreign commerce. 89 The line of mail steamers was not established; but the Amazon was opened to the navigation of all nations, largely as a result of Maury's efforts. One of the most grandiose schemes for establishing direct trade was that conceived by Col. A. Dudley Mann, of Virginia. He had seen being built in England the Great Eastern, by far the largest ship built to that time. In a letter to the people of the slaveholding states, August, 1856, he proposed the establishment of a line of four of these mammoth steamers to ply between the Chesapeake and Milford Haven, England. 90 So bold a plan captivated the "Memorial, Western Journal and Civilian, VIII, 174-80. "Maury to Blackford, Sept. 24, 1852, M. F. Maury Papers. "Also in book form. DeBow's Review, XVI, 231. Articles are in ibid., XIV, J 36-45, 449-6o, 556-67; XV, 36-43. See also ibid., XII, 381 ff.; XVI, 231-51. ** We stern Journal and Civilian, IX, 321-28. "DeBow's Review, XV, 254-74; XVI, 640; XVII, 201, 402-5. M Maury expected that the Southern states would soon have a redundant slave population, and hoped the Amazon Valley would prove an outlet. Western Journal and Civilian, IX, 328; DeBow, Industrial Resources, III, 13. 89 For example, letter of Gov. H. A. Wise, of Virginia, to a citizen of Norfolk, in Barton H. Wise, Henry A. Wise of Virginia, 216 f.; DeBow's Review, XXVI, 73-6. "Ibid., XXI, 411-25. I2O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [l2O imaginations of the Southern people. The Southern Commercial Convention at Savannah endorsed it. 91 In July, 1857, an en- thusiastic convention in its support was held at Old Point Comfort, Virginia. 92 Ex-President Tyler presided; letters from Secretary of State Cass and other members of the cabinet were read; books were opened for subscriptions of stock. An appeal was made to sectional feeling. With a view to secure a wide diffusion of the stock among the people, subscribers were limited for a period to one $100 share each. Most of the prominent men of Virginia subscribed. President Buchanan headed the list in the District of Columbia. 93 The Virginia Legislature, almost without opposition, granted a charter to "The Atlantic Steam Ferry Company," March, i858. 94 The thirty-six directors of the company must all be residents of the slaveholding states or the District of Columbia, and were to be apportioned on the basis of stock subscribed. But by this time interest had begun to wane. The Commercial Con- vention, meeting at Knoxville, August, 1857, had refused to recommend the "steam ferry." 95 Many pronounced it chimerical. The project was not completely abandoned, however, until the war. 96 Several other direct trade projects were under way or under consideration in Virginia on the eve of the war. A convention of merchants and officials of fourteen railroads met at Bristol, Vir- ginia, June, 1857, upon call of officers of the Virginia and Tennes- see railroad, then on the point of completion, to consider the subject of direct trade. 97 William Ballard Preston, a former secre- tary of the navy, was sent to Europe to disseminate information in regard to the demand for foreign goods in Virginia and her hinterland and to confer with capitalists, especially the owners of the Great Eastern, upon the establishment of a steamship line. French officials and capitalists were much interested in extending m DeSotfs Review, XXII, 96. Mann was present and a member of the general committee. "Proceedings, ibid., XXIII, 321-24; XXIV, 352-74; Richmond Enquirer, Aug. I, 3, 5, 1857. 3 Ibid., Aug. II, 17, 1857. "Acts of the General Assembly, 1857-1858, p. 125; DeBow's Review, XXIV, 352, 375- * 5 New York Herald, Aug. II, 17, 1857. m lbid., Mar. 19, 1861. "Richmond Enquirer, June 8, 1857; DeBow's Review, XXII, 553; XXIII, 86. 121 ] PLANS FOR ESTABLISHING DIRECT TRADE WITH EUROPE 121 the foreign trade of the Empire at the time. Preston was able to make a conditional agreement with officials of the Orleans Rail- way Company relative to a line of steamers between Norfolk and the mouth of the Loire. 98 The Virginia Legislature ratified the agreement by an act of March 27, 1858, incorporating the Norfolk and St. Nazaire Navigation Company." One-half the stock was to be subscribed in America, one-half in France; the directorate also should be composed of an equal number of Americans and Frenchmen. American interests were to subvent the company to the extent of $12,500 per round trip this subsidy it was hoped the Federal government would grant for carrying the mails and the French government was to be asked to lend assistance. A long correspondence between the president of the Merchants' and Mechanics' Exchange of Norfolk and M. Lacoutre and other gentlemen of France and the visit of an agent, John D. Myrick, to France, resulted in the trial trip of the steamer Lone Star, which was said to have been successful and to have proved the feasibility of direct trade. 100 By an act of February 2, 1858, the Virginia Legislature chartered the Southern Virginia Navigation Company to establish a line of steamships or sailing packets be- tween the Chesapeake and Europe. 101 Before November, 1860, the company had built one ship, engaged another, and had two or three others under construction. 102 On the very eve of secession the Virginia Legislature incorporated a Richmond and Liverpool Packet Company, and extended welcome to a proposal of M. Pierre and Brothers, of Paris, to establish a line of steamers between Virginia and France. 103 Elsewhere projects did not reach the stage of development they did in Virginia. In 1857 W. C. Barney, of Washington, attempted to promote a line of steamers between New Orleans and Bordeaux, France. He memorialized Congress for the usual subsidy for carry- ing the mails. The House Committee on the Post Office and Post Roads reported favorably upon it. The Bordeaux Chamber of **DeBow's Review, XXVI, 584-5. "Acts of the General Assembly, 1857-1858, p. 127. lv> Third Annual Report of the Merchants' and Mechanics' Exchange of Nor- folk, Virginia, June, 1860, p. 13. Acts of the General Assembly, 1857-1858, p. 187. loa New York Herald, Nov. 26, 1860. 103 Acts of the General Assembly, 1861, p. 278, 342. 122 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [l22 Commerce promised cooperation and a loan. A prospectus was got out and subscription books opened; but the project got no farther. 104 In 1860 British parties proposed to establish a line of six iron steamers between New Orleans and Liverpool. The ves- sels were to be built in England and fly the British flag, but one- half the stock was to be subscribed by Americans. The project was endorsed by the New Orleans Chamber of Commerce. 105 Thus virtually all of these projects, and several not described, for establishing lines of ocean steamers came to naught. Had the Federal government not abandoned, 1859, the policy of subsidiz- ing steamship lines, it is very probable that one or more Southern lines would have been in operation before 1861. Trans-Atlantic lines of steamships had not yet proved profitable without govern- ment aid. The failure to secure steamship lines does not signify that the direct foreign imports did not increase during the decade. A few lines of sailing packets were established, and the number of irregular vessels entered considerably increased, as did the total value of the direct imports. 106 But there was no revolution in the course of Southern commerce. In fact, the employment of steam vessels in the coasting trade tended to fix Southern commerce in its former channels. Several lines of steamships were engaged in the coasting trade between New York and New Orleans and other Southern ports in 1860. Such lines had been established in response to the demands of actual commerce. The tendency of the times was toward closer commercial relationships between the sections, the efforts of the advocates of direct trade to the contrary not- withstanding. 'DeBow's Review, XXII, 318-20; 410-14, 554; XXIII, 415-18. "Ibid., XXVIII, 462-4. *See the tables in the Appendix. I v t CHAPTER V THE SOUTHERN COMMERCIAL CONVENTION, 1852-1859 During the years 1852-1859 there met annually or oftener, in turn at Baltimore, Memphis, Charleston, New Orleans, Richmond, Savannah, Knoxville, Montgomery, and Vicksburg, sessions of the so-called Southern Commercial Convention. After the first the time and place of meeting and, to some extent, the organization and program of each were determined by its predecessor; so there was a degree of continuity in their endeavors. Several of the gath- erings were very respectable in point of numbers; in most of them, all or nearly all of the Southern States were represented; some able and well-known men were among the delegates in every case; their proceedings were watched in the South and even in the North with considerable interest. As their name indicates, they were sectional in character. The term "commercial" does not accurately indicate their purpose, but cannot be considered a misnomer. A study of this series of meetings is conducive to a better understanding of the state of public opinion in the South during the decade before the war upon questions affecting the material progress and pros- perity of the section. The origin of the Southern Commercial Convention is not to be explained by any single event or isolated circumstance. A non- political or semi-political convention was by no means a new thing in the South in 1852. Although none of those assembled prior to that time was quite of the type of the Southern Commercial Con- vention, several may be considered forerunners of it. The direct trade conventions of the late thirties may be so classed, although they were more restricted in their objects, and not section-wide in their representation. 1 Those held in Virginia were gatherings of Virginians with a few scattering delegates from border North Carolina counties. 2 They were interested primarily in local prob- lems, although there was recognition that the cause of Virginia was in a way the cause of the South, and although the connection be- tween them and the direct trade conventions of South Carolina and Georgia was very close. The Charleston and Augusta conven- 'See ch. I. 'Savannah Republican, April 7, 1838. 123 124 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [124 tions, likewise, were composed almost entirely of South Carolina and Georgia men. Attempts to win the younger states farther west to the cause failed of the accomplishment; they were urged to send delegates to each of the conventions, but did not do so. Among other reasons for this was the fact that the Southwest was not yet concerned about "Southern decline." More widely representative than the direct trade conventions, but perhaps with less justification considered a forerunner of the Southern Commercial Convention, was the Southwestern Conven- tion in Memphis, November, i845- 3 In composition and sentiment it was more Western than Southern. Delegates were present from Ohio, Indiana, Illinois, Missouri, and Iowa Territory as well as from states of the Southwest and South. The primary purpose of the meeting was to present the demands of the West for the im- provement by the Federal government of the navigation of West- ern rivers demands which were very insistent for several years prior to the building of railroads in the Mississippi valley. An attempt was made to find constitutional justification for the im- provement by the Federal government of the Mississippi and its tributaries which would be acceptable to all parties in the West and South. John C. Calhoun, who understood better than any other Southern leader the growing power of the West and the strength of the demand for improvement of Western rivers and harbors, presided over the convention. He had not yet abandoned hopes of attaining the presidency of the United States; he was still firmly convinced of the desirability of maintaining the polit- ical alliance of the South and West. In his address before the convention and later in his report to the Senate upon the Memorial of the convention, he went to such lengths in meeting the views of the Western men that it was with difficulty he held his strict con- structionist followers in line. 4 The convention dealt with other 'Proceedings are in Journal of the Proceedings of the Southwestern Conven- tion, began and held at the city of Memphis on the 12th of November, 184-5. Cf. DeBow's Review, I, 7-22; Niles' Register, LXIX, 212-14; Memphis Daily Eagle, Nov. 18, 1845. There were present 529 delegates from 12 states and one territory. *Calhoun's address to the convention is in the Journal of the Proceedings of the Southwestern Convention, p. 7 ff. His report to the Senate on the Mem- orial of the convention is in Works, V, 246-93. For Calhoun's motives, see Cal- houn to James Edward Calhoun, July 2, 1846; to Thomas G. Clemson, July n, 1846; Duff Green to Calhoun, Sept. 24, 1845, Calhoun Correspondence. For re- 125] THE SOUTHERN COMMERCIAL CONVENTION 125 subjects, it is true. It was employed to stimulate interest in rail- road communication between the Mississippi valley and South Atlantic ports; a system of railroads was outlined which would effectually bind together the South and Southwest. 5 It endorsed in a qualified manner the warehousing system, which some hoped would promote the foreign commerce of Southern ports. It gave some attention to the question of overproduction of cotton, and to the diversification of agriculture and the introduction of manufac- turing as remedies. 7 The sequel of the Memphis convention was not so much the Southern Commercial Convention, however, as it was the large Rivers and Harbors Convention held in Chicago in July, 1847." The alliance of the South and West had carried the Walker Tariff bill of 1846; but the Rivers and Harbors bill of that year had been carried by logrolling methods, the friends of Eastern harbors, Lake harbors, and Western rivers pooling their interests. President Polk vetoed the bill. 9 He did not follow the constitu- tional arguments employed by Calhoun in his report to the Senate upon the Memorial of the Memphis convention, but employed reasoning which Calhoun believed would preclude the possibility of uniting the South and West in support of a reasonable program of river improvement. 10 The Chicago convention, which was as strongly dominated by the Whigs as the Memphis convention had been by the Democrats and contained more Eastern men than the Memphis convention had contained Southern, sought to make capital of Folk's veto. There was an attempt to unite the West and East upon broad Whig principles, much broader than Calhoun could accept. It was more than intimated that the way to improve rivers and harbors was to elect a president who would sign a bill ception of Calhoun's address and report see Niles' Register, LXIX, 214, quoting the Charleston Mercury; So. Quar. Rev., X, 377 ff., 441-512, 515; DeBow's Re- view, I, 83 f.; Cong. Globe, 33 Cong., I Sess., 246; Calhoun to Mrs. Thomas G. Clemson, June II, 1846, Calhoun Correspondence. 6 Journal, 29-40. See also Sioussat, St. G. L., "Memphis as a Gateway to the West," Tenn. Hist. Mag., II. 77-114. 'Journal, 96-99; Memphis Daily Eagle, Dec. 17, 1845. ''Journal, 41-55. 'Proceedings in Niles' Register, LXXII, 309-10, 331-33, 344-46, 365-67. "Messages and Papers of the Presidents, IV, 460-66. "Calhoun to James Edward Calhoun, Aug. 8, 1846; to J. L. M. Curry, Sept. 14; to Thomas G. Clemson, Sept. 20, Calhoun Correspondence. 126 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [126 for that purpose. 11 The Memphis convention had been used to stimulate interest in railroad communication between the Missis- sippi valley and the South Atlantic seaboard; the Chicago conven- tion was similarly used to promote various projects for railroads between the East and the West. 12 In October, 1849, a great Pacific Railroad Convention met in Memphis. 13 Its purpose was to crystallize sentiment in favor of a railroad to the Pacific and give a demonstration of the strength of the supporters of a Southern route, whose eastern terminus would presumably be Memphis. Five days earlier a still bigger conven- tion had been held in St. Louis, for the purpose of crystallizing sentiment in favor of a railroad to the Pacific and canvassing the support which a central route could command. 14 Both of these conventions professed to look upon the construction of the Pacific railroad as a great national undertaking, which should receive in some way the aid of the Federal government, and which would redound to the benefit of the whole nation; but each was largely sectional in composition and sentiment, and each saw the special advantages, political and commercial, to accrue to the section and locality fortunate enough to secure the eastern terminus of the proposed railroad. Inasmuch as the Memphis convention was so largely sectional and dealt with a project which occupied much of the time of the later convention and whose accomplishment would do much to promote the progress and prosperity of the South, it may be considered a forerunner of the Southern Commercial Con- vention. "Calhoun to Duff Green, June 10, 1847, Calhoun Correspondence; Niles' Register, LXXII, 266-67, 3*o; LXIII, 24, Daniel Webster's letter to the con- vention; 219, Webster's speech at the opening of the Northern New Hampshire Railway; American Review, VI, 111-22; DeBow's Review, IV, 122-27; 291-96. "American Review, VI, III ff.; DeBow's Review, IV, 258. "Minutes and Proceedings of the Memphis Convention, assembled October 23, 1849; DeBow's Review, VII, 36, 188, 550, 551. Cf. National Plan of an Atlantic and Pacific Railroad and Remarks of Albert Pike, Made Thereon, at Memphis, November, 1849; Cotterill, "Memphis Railroad Convention, 1849," Tenn. Hist. Mag., IV, 83-94. ^Proceedings of the National Railroad Convention, which assembled in the City of St. Louis, on the fifteenth day of October, 1849. A third Pacific Rail- road Convention was held in Philadelphia, April 1-3, 1850. Proceedings of the Convention in Favor of a National Railroad to the Pacific Ocean Held in Phil- adelphia, April 1, 2, and 3, 1850. Cf. Mo. Hist. Rev., 203-15. 127] THE SOUTHERN COMMERCIAL CONVENTION 127 A local railroad convention which met in New Orleans in the summer of 1851 appointed a committee to address the people of the Southern and Western states in the interest of a general railroad convention of the South and West to meet in New Orleans in January, i852. 15 The address, while emphasizing the railroad needs of the Mississippi valley and of New Orleans in particular, did not overlook "Southern decline" and the necessity for united action in the South to advance her commercial interests. "They [the Southern states] have an interest in each other's prosperity, founded upon common hopes, and fears, and dangers. . . . The interests of Mobile, New Orleans, Charleston or Savannah in each other's advancement are stronger than their interest in the ad- vancement of Boston and New York. These interests should preclude all jealousies and rivalries and induce a generous co- operation in every instance where the benefit of the whole South is at issue." 16 The convention which met in pursuance of this call, 17 while primarily interested in launching New Orleans and Louisiana upon an internal improvement program, had many of the earmarks of the later Commercial Convention. Delegates were present from eleven states. Frequent references were made to Southern commercial dependence and its remedy. A committee on railroad routes, William Burwell, of Virginia, chairman, reported a list of internal improvements which were regarded as not only indispensable to the development of the agricultural, commercial, and mineral wealth of the Southwestern states, but also as "essen- tial to the equality and unity of the states of this confederacy." 18 By this time conditions had reached a stage when a Southern Commercial Convention could be assembled. The internal trans- portation systems of the country were developing along lines which pfbmised to bind the Northwest firmly to the East and the Southwest to the old South. The Pacific railroad question had taken on the form of a sectional struggle over the selection of a route. The entire South had been interested in the discussion of "DeBow's Review, XI, 74, 217, 340. u lbid., XI, 142-78 (quotation from p. 154); Address to the People of the Southern and Western States, and more particularly to those of Louisiana, Texas, Mississippi, Alabama, Tennessee, Arkansas, Kentucky, and Missouri, New Orleans, 1851 (pamphlet). "Proceedings, in De Bow's Review, XII, 305-332, 543-68. "Ibid., XII, 315. 128 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [128 diversification of industry and the development of cotton manu- factures, and had been awakened thereby to a realization of the disparity of the sections in industrial development. The people of other Southern cities and states than those of the Atlantic seaboard had become aware of Southern commercial decline and its baneful effects, and were talking direct trade. Finally, and more important, the sectional struggle over slavery had reached a most bitter stage; the Southern Convention, the long dream of men of the South Carolina school, had met in Nashville, and the Union had been in danger of dissolution. True, a compromise had been effected after a protracted debate; but it had been accepted in the South with misgivings, and in several states only after violent political struggles. And the effect of the whole episode was not to allay sectionalism but to aggravate it. The old alliance of South and West was breaking up. The number was growing rapidly of those who felt that the South could trust only herself, that the Southern people must unite and learn the art of co- operation, that they must develop their resources and increase their wealth and population, if the South were to maintain her equality in the Union or her independence out of it. It is difficult to state whence came the specific suggestion which resulted in the call of the first meeting of the Southern Commercial Convention. James D. B. DeBow, a true son of South Carolina, had been a persistent proponent of the idea of bringing the South together in convention, and had used DeBow's Review to effect with that end in view. When the interest in cotton manufactures was at its height, DeBow suggested a manu- facturers' convention. 19 He tried to arrange the meeting of an in- dustrial convention in New Orleans in the spring of 185 1. 20 He claimed to have been one of the original Southern Convention men and was disappointed that "action" could not be taken at Nash- ville. After the compromise measures had been enacted he felt that the danger to the South was only postponed. He, therefore, favored a Southern convention to agree upon what would consti- tute grounds for resistance, a Southern mercantile convention as a proper means of strengthening the South by promoting shipbuild- ing and direct trade, thus making possible the retention at home of "De Bow's Review, IX, 256; X, 107. "Ibid., IX, 256, 460. 129] THE SOUTHERN COMMERCIAL CONVENTION I2Q millions of wealth contributed annually to the North, and a Southern manufacturers' convention to agree to pay no more tribute to Northern looms. 21 In the New Orleans Railroad Con- vention of January, 1852, he proposed that the convention resolve itself into an association for the promotion of the industrial inter- ests of the Southern and Western states and provide for annual meetings, but his proposal was not acted upon. 22 DeBow was al- ways considered one of the founders of the Southern Commercial Convention. C. G. Baylor, editor of the Cotton Plant, a Baltimore publication, also advocated a convention, and later claimed to have been instrumental in arranging for the meeting in Baltimore in December, 1852. 23 Finally, a number of Southern leaders, chief of whom was Senator William C. Dawson, of Georgia, who thought it time for the South to make a concerted effort to achieve commercial and industrial independence, asked Baltimore business men to inaugurate the movement. 24 Baltimore was chosen be- cause she was the largest city in slaveholding territory, and it was believed her name would lend prestige. 25 A call was issued by the Baltimore Board of Trade for a convention to meet in that city December 18, 1852; the object as stated in the call was to promote foreign and interstate trade. 26 The delegates of the Baltimore convention were carefully selected with the idea of avoiding anything like a mass meeting. 27 A number of congress- men from the South and the Ohio valley came up from Washing- ton. The other delegates were mostly business men. Senator Dawson was made president. Brantz Mayer read in behalf of the Board of Trade a carefully prepared address of welcome. 28 He described the advantages of Baltimore, her merchants, her manu- facturers, her banks, and her facilities for direct trade with "DeBow's Review, X, 107. "Ibid., XII, 554, S6i. "Richmond Enquirer, Dec. 24, 1852; Memphis Daily Appeal, Jan. 23, 1853. "Df Bow's Review, XV, 257; New York Herald, April 15, 1854; New Or- leans Commercial Bulletin, Jan. 17, 1855. "Memphis Daily Appeal, June 23, 1853. "Baltimore Sun, Dec. 17, 1852; DeBow's Review, XIII, 427. "Baltimore Sun, Dec. 17, 1852; Richmond Enquirer, Dec. 24, 1852, C. G. Baylor's remarks in the convention. "Proceedings, in Baltimore Sun, Dec. 20, 1852; Richmond Enquirer, Dec. 24, 1852. The resolutions and Brantz Mayer's address are also in DeBow's Re- view, XIV, 373-79. IjO ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [ijO Europe. The Baltimore and Ohio railroad was about completed to the Ohio river, and Baltimore would soon compete with New York and Philadelphia for Western trade. The delegates were assured that Baltimore was a Southern city, devoted to the Southern cause, and disposed to join the South in achieving com- mercial independence of New York, Boston, and Philadelphia; the way to achieve commercial independence was to make Bal- timore the commercial and financial center of the South. The convention endorsed all of Baltimore's aspirations. The only incident which occurred to mar the harmony of the proceedings was a remark of William Burwell, of Virginia, that he considered Norfolk a better port than Baltimore. Some consideration was given to the Pacific railroad, for whose construction it was ex- pected Congress would provide in the session just beginning, and to other important internal improvements in the Southern states. A line of steamships to Liverpool was recommended, and also steam communication with the Amazon valley. The convention sought to justify itself against the charge of sectionalism by the following resolution: Resolved, That while we disdain the slightest prejudice or hostility to the welfare and prosperity of any particular section or city, North or South, we would promote, as we think we reason- ably might, consistent with the laws of trade, its great central position, the commercial interests and prosperity of Baltimore, as being well calculated to excite a wholesome and beneficial compe- tition with more northern Atlantic cities, which could not fail to be particularly advantageous to the whole South, Southwest, and West, and, in fact, to the nation at large. The convention sat but one day; it adjourned to meet in Mem- phis in June, 1853. The proceedings present a striking contrast with those of later conventions, which sat from four to six days, with their wranglings, fiery declamation, numerous committees, and innumerable resolutions. The Baltimore convention did not give universal satisfaction. The Richmond Enquirer thought the address of welcome made too many allusions to Baltimore. 29 Only Lieutenant Maury, it re- marked, remembered that there was such a place as Virginia. The press of New Orleans thought that the movement had been got up by Baltimore to catch trade. New Orleans, they said, was "Dec. 21, 1852. Cf. ibid., April 14, 1854. I3l] THE SOUTHERN COMMERCIAL CONVENTION 131 a better Southern city than Baltimore; and it was wrong for Baltimore to try to injure New Orleans by diverting her com- merce. 30 The feeling was pretty general that the Baltimore Board of Trade had attempted to turn what was intended for a Southern movement to her own account. 31 However, a beginning had been made. The Memphis convention was a somewhat larger body. 32 Delegates were present from fourteen states, including Missouri, Kentucky, Illinois, and Indiana. Thus, like the Baltimore gather- ing, it was not strictly Southern; in fact, each was officially desig- nated the "Southern and Western Commercial Convention." Like the Baltimore convention, also, it was not marked by bitter sec- tionalism. Senator Dawson again presided, and several other prominent leaders of the South were among the delegates, notably General John A. Quitman and H. S. Foote, of Mississippi, and John Bell, of Tennessee. The objects of the convention had not yet been clearly denned. Upon taking the chair, Senator Dawson stated them as he under- stood them. His statements may be taken as the expression of a moderate leader who had had a considerable part in the inaug- uration of the convention. The members of the convention were not, he said, actuated by feelings of hostility to any section of the Union; but it had been seen for years that the people of the Southern and Western states were suffering from a want of the proper development of the natural resources of their section. Im- mediate action was necessary. The important interests of agricul- ture, commerce, and manufactures were all proper subjects for dis- cussion. Better transportation facilities, development of seaports, direct trade, lines of steamers to Europe and South America, im- provement of rivers and harbors, encouragement of manufactures, "DeBozv's Review, XVIII, 354; Charleston Conner, Mar. 3, 1854, quoting the New Orleans Delta; Memphis Eagle and Enquirer, June 16, 1853, letter from C. G. Baylor, editor of the Cotton Plant (Baltimore); Memphis Daily Appeal, June 23, 1853; New Orleans Commercial Bulletin, Jan. 4, 1855. "The Baltimore Sun of Dec. 27, 1852, quoted a number of Southern papers as expressing friendliness to Baltimore. "Four hundred ninety-six delegates were present. Proceedings, in Proceed- ings of the Southern and Western Commercial Convention at Memphis, Ten- nessee, in June, 1853 (pamphlet, 64 pp.). See also the Memphis Daily Appeal, June 7, 10, 20, 1853; DeBow's Review, XV, 254-274; Western Journal and Civilian, X, 191-197. 132 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [132 and, finally, the Pacific railroad, "the great work of the age and the world," were all specified as subjects which deserved the con- sideration of the convention. 33 This statement suggested a wide range of discussion; the con- vention went even beyond it. After considerable debate resolutions were adopted asking Congress to appropriate money to improve the channels of the mouths of the Mississippi river, the Des Moines and Rock river rapids, and the harbors of Charleston, Savannah, Wilmington, Norfolk, Mobile, and Galveston. Other resolutions looked to aid from the Federal government in protect- ing the lands along the Mississippi from inundation. Resolutions were adopted relative to direct trade and steamship communica- tion with Europe. Provision was made for a committee to prepare for publication and distribution, particularly in the manufacturing districts of Europe, a full report on the peculiar facilities offered by the South and West for the manufacture of cotton. The con- vention resolved that Southern youth should be educated at home rather than in Northern schools. Native teachers should be em- ployed, and textbooks written by Southern men should be used. The state governments were requested to consider the establish- ment of normal schools. There were long speeches on the free navigation of the Amazon river a subject which Lieutenant M. F. Maury had been agitating for a year or two. The projected railroad across the Isthmus of Tehuantepec was endorsed, and the government was requested to hasten the negotiations with Mexico relative to the right of way. The New Orleans delegation was especially interested in the Tehuantepec project. A St. Louis project for a Mississippi valley railroad from New Orleans to St. Paul via St. Louis was likewise endorsed, and Congress was requested to grant unsold lands along the route in aid thereof. But the subject that occupied the largest share of the time and interest of the convention was the Pacific railroad. "This," said the New Orleans Delta, "was the Aaron's rod that swallowed up all others. This is the great panacea, which is to release the South from its bondage to the North, which is to pour untold wealth into our lap; which is to build up cities, steamships, manufactories, educate our children, and draw into our control what Mr. Bell K DeBow's Review, XV, 256 ff. 133] THE SOUTHERN COMMERCIAL CONVENTION 133 calls 'the untold wealth of the gorgeous East.' " 3 * The convention unanimously adopted resolutions which declared the road a national necessity, and requested Congress, as soon as the surveys of routes which were then being prosecuted should be completed, to adopt such measures as would insure the construction of the main trunk at the earliest possible period. It refused to suggest that the Federal government construct the main trunk; but it did declare it right, expedient, and proper for the government to make large donations of the public lands to the different states bordering on either side of the Mississippi to enable all sections to connect themselves with the main line by branches. No specific route was recommended. The third session of the Southern Commercial Convention was held in Charleston in April, 1854. It was a much larger gathering than either of its predecessors. 35 Senator Dawson again presided. The convention sat six days. The debates were longer and covered an even wider range of subjects than those at Memphis. The Pacific railroad again occupied the center of the stage; but such subjects as direct trade, the encouragement of manufacturing and mining, the remission of duties on railroad iron, and the improve- ment of rivers and harbors were discussed at some length. Among the other topics which received consideration were opening the Amazon river to the navigation of the world; the repeal of the United States tonnage duties and fishing bounties; the admission of foreign vessels to the American coasting trade; direct shipments of cotton to the ports of Continental Europe European manu- facturers purchased their stocks in Liverpool usually ; uniform coinage among the nations of the earth; improved mail service in the South; milling and lumbering; agricultural exhibits and institute fairs; and education in the South. The tone and temper of the gathering were unmistakable; it was a Southern convention determined to find some means of advancing the interests of the South as distinguished from the North. The multiplicity of sub- ducted with approval in the Richmond Enquirer, June 24, 1853. M It was in fact the largest of the whole series. There were present 857 dele- gates from 13 states. The proceedings are in the Charleston Courier, April n- 14, 17, 18, 1854; New York Herald, April 14-19 (taken in part from the Courier); DeBow's Review, XVI, 632-41; XVII, 91-99, 200-213, 250-61, 398-410, 491-510 (taken from Charleston papers, chiefly from the Courier). 134 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [134 jects pressed upon it for attention indicates the earnestness, at least, of many of the men who composed it. Several essays were made to define the objects of the Southern Commercial Convention. C. K. Marshall, of Mississippi, offered a resolution to the effect that, while commerce was the subject for special consideration by the convention, other matters tending to the accomplishment of the general design of the development of the rights and resources of the Southern and Southwestern states were legitimate subjects. 36 DeBow, who was unable to be present, wrote to the committee in charge of arrangements stating his understanding of the objects of the convention. He emphasized the point that these conventions were successors of the direct trade conventions of the late thirties, the Memphis conventions of 1845 and 1849, and the New Orleans Railroad Convention of 1852. He believed these conventions had contributed largely to the great development which had been exhibited everywhere throughout the South during the several years preceding. Further- more, they had taught the South to see and feel with humiliation her dependence upon the North, not only in industry and com- merce but in matters not of a material character. As he saw it, the task which lay before them was no less than the regeneration of the South. 37 This seems to have been the view also of gentle- men who addressed the convention; and this must be set down as the purpose of the Southern Commercial Convention when at its best. The lengthiest debates of the session were upon a scheme pro- posed by Albert Pike, of Arkansas, for building the Pacific railroad along a Southern route without aid from the Federal government. The Legislature of Virginia was called upon to charter a Southern Pacific Railroad company with sufficient capital to build the road. The stock was to be subscribed by the Southern states and Cali- fornia to the sum of $2,000,000 each, by cities, by private cor- porations, and by individuals. Texas was expected to make a liberal grant of public land. The Cherokee, Choctaw, and Creek nations were to be invited to join the enterprise. The board of directors was to consist of an equal number from each state. The corporation was to be granted power by its charter to negotiate "DeBow's Review, XVII, 92 f. "Ibid., XVII, 95 ff.; Charleston Courier, April 10, 1854. 135] THE SOUTHERN COMMERCIAL CONVENTION 135 with Mexico for, and to purchase if necessary, a right of way through her territory to the Pacific or the Gulf of California; and to agree that the company would maintain military posts along the portion of the road which should lie in Mexico. 38 This extraordinary plan was opposed upon the floor by some of the ablest and most practical men of the convention, including Senator Dawson, Lieutenant Maury, Judge Nesbit, of Georgia, Governor J. A. Jones, of Tennessee, and N. D. Coleman, of Mis- sissippi the last two being railroad men. According to these men, the plan was chimerical; it would be impracticable to unite the Southern states upon it; it would disrupt the South; it was too sectional; it savored too much of politics; definitely broke with the Western states; was of doubtful constitutionality; and the consti- tutions of several states forbade them entering any such corpora- tion. Yet the convention, voting by states, unanimously endorsed Pike's scheme: Pike was a brilliant orator and presented his plan in a most convincing manner; 39 some support may have been attracted among strict constructionists by the omission of any demand for Federal aid; but the chief recommendation of the plan was its sectional nature. Sectionalism was running high at this time. The Kansas- Nebraska bill was before Congress. A Pacific railroad bill had been defeated in the short session of the Thirty-second Congress, 1853, largely because partisans of a Southern route feared that it gave some advantage to the North. 40 Since that time partisans of the several proposed routes had been exerting themselves to the utmost to gain some advantage in the struggle. Surveys made in 1853 under the direction of Jefferson Davis, Secretary of War, had shown that the best Southern route ran south of the Gila River in Mexican territory. 41 Very late in the same year the Gadsden treaty had been negotiated with Mexico securing, among other things, the desired route. While the Charleston convention was sitting, the treaty was being considered by the Senate in secret "Resolutions embodying the plan, DeBow's Review, XVI, 636-37. "For debate see ibid., XVII, 205-13, 408-10, 492-506. 40 This statement is based upon an unpublished study, made by the author, of the struggles in Congress over the Pacific railroad. "Reports of the Explorations and Surveys, to Ascertain the Most Practical and Economical Route for a Railroad from the Mississippi River to the Pacific Ocean, I, 4, 29. 136 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [136 session; and, rumor had it, was meeting opposition, which was attributed to the unwillingness of Northern men to purchase a Southern route to the Pacific. 42 General Gadsden himself addressed the convention in favor of a resolution in support of ratification of the treaty and in favor of Pike's plan. 43 Albert Pike took strong sectional grounds in his speech in support of the resolutions embodying his plan. He invited the attention of the convention to the great Northwest, which, he said, never seemed to be taken into consideration by Southern men. This region was bidding for immigration: laws granting foreign immigrants the suffrage before they had declared their intention of becoming United States citizens were one inducement; the proposed homestead legislation was another; the Kansas-Nebraska bill another. The North was increasing her political power at the South's expense. "And with this continued increase in foreign and Northern influence was it not obvious that the prospect of the South ever getting a Pacific Railroad was put further and further off every year?" The North was looking out for her own interests; "the North knew full well that wherever the Pacific Railroad went, there too, would go the power and wealth of the country." The South should look to her interests. He wanted his plan to be a "sort of declaration of inde- pendence on the part of the South." 44 After the great meeting at Charleston, the Southern Com- mercial Convention languished for a couple of years. The session in New Orleans in January, 1855, was very poorly attended and attracted little attention from the South at large. 45 There were several reasons for the poor showing. The Western rivers were low, making travel difficult. Congress and the state legislatures were in session. The country was suffering somewhat from a tem- "Dt Bow's Review, XVII, 210, 408; New York Herald, April 19, 1854. "DeBow's Review, XVII, 408-9; letter from John R. Bartlett, one of the Mexican boundary commissioners, taking umbrage at Gadsden's remarks in the convention, Charleston Courier, April 28, 1854. "I have followed the synopses of his speeches as given in DeBow's Review, XVII, 208-12, 499-506. The same arguments are set forth in a very striking and able manner in a memorial to the state legislatures which Pike prepared. Ibid., XVII, 593-99- 45 Two hundred twelve delegates from twelve states. The proceedings are in ibid., XVIII, 353-60, 520-28, 623-35, 749-60; New Orleans Commercial Bulletin, Jan. 10-16, 1855. 137] THE SOUTHERN COMMERCIAL CONVENTION 137 porary financial stringency.* 6 The presence of so many radicals in the Charleston convention had discredited the movement in the eyes of many of more conservative opinions. 47 But the chief reason for the poor showing made was the attitude of the people of New Orleans and vicinity. The city council took tardy action, and the committee on arrangements did little. The Governor of Louisiana neglected to appoint delegates. Several of the New Orleans newspapers were antagonistic, expressing the opinion that the convention had been decidedly hostile to New Orleans from the beginning. 48 A specific grievance was the refusal of the Charleston convention to adopt resolutions requesting Congress to make appropriations for the improvement of the navi- gation of the Mississippi. 49 On the other hand there was a feeling throughout the South that the people of New Orleans were only lukewarm for the Southern cause. This feeling of hostility on the one hand and distrust on the other found expression upon the floor of the convention, and visiting delegates left with the feeling that they had not been cordially received. 50 The session at Rich- mond, Virginia, early the following year, 1856, made no better showing, only seven states being represented; 51 but in this case the want of success seems to have been largely due to severe weather and to the fact that, the meeting having once been postponed in- definitely because of an epidemic of small-pox in Richmond, too "Charleston Courier, Jan. 13, 1855. * 7 Savannah Daily Republican, Nov. 17, 1856; DeBow's Review, XVIII, 523. Senator Benton, of Missouri, had denounced the Charleston convention as a disunion convention and Pike's plan for building the Pacific railroad as a plan for dissolving the Union. Ibid., loc. cit. *DeBow's Review, XVIII, 353; New Orleans Commercial Bulletin, Jan. 4, 1855. "This feeling of indifference and apathy is not at all to be wondered at. All disclaimers to the contrary notwithstanding, the series of Southern Commer- cial Conventions, commencing at Baltimore, and continued at Memphis and Charleston, were decidedly antagonistic to the interests of New Orleans; and this inimical tendency was more than once exhibited in a manner invidiously offensive and calculated to disturb and wound our amour propre." Ibid., Jan. 17, i8SS- "DeBow's Review, XVIII, 628. "Ibid., XVIII, 354, 624, 632, 634. "Proceedings, in ibid., XX, 340-354; Richmond Enquirer, Jan. 31, Feb. I, 2, 4, 5, 1856. The resolutions are in Hunt's Merchants' Magazine, XXXIV, 392. There were 213 delegates present, of whom 183 were from Virginia. IjS ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [138 short notice was given of the time of the meeting. 52 The chief topic of discussion at New Orleans was the Pacific railroad; at Rich- mond, direct trade. Most of the other topics discussed at previous sessions were considered in a more or less perfunctory manner. The Richmond convention determined that a greater effort than theretofore should be made to insure a large attendance at the next meeting; a committee was appointed to address the Southern people in its behalf. 83 The Savannah committee on preparations worked hard. But it was the political situation which was chiefly responsible for the large attendance at Savannah: the convention met in December, 1856, a month after the exciting presidential campaign had resulted in the narrow defeat of the "Black Repub- lican" party. 64 The fire eating element in the Southern Commercial Conven- tion had been gradually growing. Several members of the com- mittee which issued the call for the Savannah convention were known to be disunionists. 55 Many friends of the Union had come to look upon the convention with distrust, and branded the Savannah session in advance a disunion scheme. 56 The city council of Nashville, Tennessee, for example, refused to appoint delegates to the convention, because it feared its disunion proclivities. 57 On the other hand, the New Orleans Delta, a journal which had been antagonistic when the dominant purpose was the economic regen- eration of the South, gave cordial support now that the objects were becoming political. 58 The convention at Savannah was com- posed largely of politicians, and a large minority, if not an actual majority, were disunionists. 59 James Lyon, of Virginia, upon tak- "DfBow's Review, XX, 340. "Ibid., XX, 351; XXI, 550-552 (the call). "Savannah Republican, Oct. 17, 21, 29, 1856. There were 564 delegates from ten states. "The Savannah Republican thought that "aside from the known character and sentiment of the men who compose that committee," there was nothing in the call that could be tortured into a disunion sentiment. Nov. 17, 1856. The Republican was a Union paper. "The Savannah Republican, Dec. I, 1856. "Ibid., Nov. 25. M Quoted in the Charleston Courier, Nov. 6, 1856. "The Savannah Republican, Dec. 16, 1856, thought the convention was by large odds a "conservative body," but admitted the presence of a considerable number of disunionists. A list of the delegates is in DeBow's Review, XXII, 82 ff. 139] THE SOUTHERN COMMERCIAL CONVENTION 139 ing the chair, stated the objects of the convention as they had already been stated several times. He defended the convention against the charge of disunionism. It was commercial and not political independence the South sought. But, in a strain quite common in that day, he "looked to the future," and expressed the fear that the time might come when the South would have to defend her rights. For such a time it behooved her to be strong and ready. 60 The convention considered rather perfunctorily the subjects discussed at previous sessions. 61 Albert Pike was again able to secure endorsement of his plan for building a railroad to the Pacific. A. Dudley Mann's scheme for establishing a "steam ferry" between the Chesapeake and England was endorsed; as was -also Thomas Rainey's project for a line of steamships from New York to the La Plata, via Savannah. But the chief interest was in questions more political in character. Robert Toombs addressed a letter to the convention proposing that the state legislatures en- courage direct trade by levying an ad valorem tax upon the sale of all goods imported into their respective states except goods im- ported directly from foreign countries. Such a tax, Toombs be- lieved, would not only enable the states to dispense with direct taxation, but would also provide ample revenue to carry out works of internal improvement. 62 The letter was referred to the general committee, which reported not Toombs' plan but resolutions in favor of free trade and direct taxation as measures best calculated to promote direct trade. The report was tabled (by a vote of 57-24) ; but the subject was kept alive by the appointment of a committee to report upon it at the next session. 63 Resolutions in favor of reopening the African slave trade, an issue raised shortly before, 61 were introduced and debated at "Savannah Republican, Dec. 9, 1856; DeBow's Review, XXII, 86-7. "Proceedings, in Official Report of the Debates and Proceedings of the South- ern Commercial Convention, assembled at Knoxville, Tennessee, August 10, 1857, Appendix: Proceedings of the Southern Convention at Savannah. Also in De- Bow's Review, XXII, 81-105, 216-24, 307-18; Savannah Republican, Dec. 9-13, 1856; Charleston Courier, Dec. 11-13. "DeBow's Review, XXII, 102-104; Charleston Courier, Dec. 15, 1856. The plan was not original with Toombs. For fuller discussion see below, p. 167 f. "Proceedings and debate, in DeBow's Review, XXII, 92 ff., 307-18. 'The question was fairly launched by Governor Adams, of South Carolina, in his message to the Legislature, Nov. 24, 1856. Charleston Courier, Nov. 26. 140 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [ 140 length, the debate turning not so much upon the propriety of con- sidering such a question in a commercial convention as upon the expediency of reopening the foreign slave trade. This question, too, was carried over by the appointment of a committee to report at the next meeting of the convention. 65 Resolutions were also adopted recommending organized Southern emigration to Kansas; requesting Southern representatives in Congress to inquire whether their respective states had received their full quota of the public arms, and to insist that Southern posts be properly fortified; recommending the establishment of state armories; and expressing sympathy with the "efforts being made to introduce civilization in the States of Central America, and to develop these rich and productive regions by the introduction of slave labor," that is, with the Walker filibusters. 66 The Southern Commercial Convention had now reached a stage where nothing could be expected from it in the way of ad- vancing commerce and industry in the South. The committee which issued the call for the succeeding session at Knoxville styled it, rather suggestively, the "Southern Convention," and declared its purpose to be to unite the South upon a sectional policy. "Every other purpose," said the committee, "is of trifling importance in comparison with the high moral and social objects of the Convention. They are intended to spread far and wide, correct, enlarged, and faithful views of our rights and obligations, and to unite us together by the most sacred bonds to maintain them inviolate for ourselves and our posterity." 67 At Knoxville in August, i857, 68 J- D. B. DeBow, already an avowed disunionist, was made president, and opened the convention with a ringing disunion speech. He admitted that the convention had built no railroads and established no steamship lines; but it had caused the people of the South to understand the importance of all those things; and they would come in the fullness of time. It had taught the people that the South had rights a thousand times more valu- '"DeBow's Review, XXII, 216-224 (summary of the debate). 6t lbid., XXII, 96-102 (resolutions of the convention in full). "Ibid., XXIII, 193. "Proceedings, in Official Report of the Debates and Proceedings of the Southern Commercial Convention, assembled at Knoxville, Tennessee, August 10th, 1857; DeBow's Review, XXIII, 298-320; New York Herald, 17, 18, 19 (best report). There were 710 delegates from eleven states and Arizona territory. I4l] THE SOUTHERN COMMERCIAL CONVENTION 14! able than the Union, and that she had resources sufficient to make her important in the Union or to enable her to maintain herself as an independent nation. 69 Resolutions in regard to reopening the foreign slave trade were introduced and debated at great length. By a scale vote of 66 to 26 a resolution was adopted which put the convention on record in favor of the annullment of that article of the Webster-Ash- burton treaty, ratified November 10, 1842, which provided for keeping a squadron of naval vessels off the coast of Africa for the purpose of suppressing the slave trade. An amendment offered by a Tennessee delegate declaring it "inexpedient and contrary to the settled policy of this country to repeal the laws prohibitory of the African slave trade" was defeated by a vote of 40 for, 52 against. 70 The amendment was almost identical in language with a resolution introduced in the House of Representatives, December 15, 1856, by James L. Orr, of South Carolina, and adopted with only eight dissenting votes. 71 One delegate broached the subject of free immigration, but it did not meet with favor among the body of delegates; 72 it was, of course, a much more practical subject. Another long debate occurred upon the resolution, offered by W. W. Boyce, of South Carolina, declaring that the system of duties on imports should be abandoned by the Federal government and direct taxation be resorted to exclusively. 73 Whatever the merits of absolute free trade, its establishment in the Union was about as impossible as was reopening the foreign slave trade. 74 It is true, the former objects of the convention were not com- pletely lost sight of. A. Dudley Mann's scheme for establishing a steamship line between Chesapeake Bay and Milford Haven was debated and endorsement defeated, probably at the instigation of friends of rival Virginia projects. 75 A resolution was adopted DeBow's Review, XXIII, 225-38; Richmond Enquirer, Aug. 17, 1857. "DeBow's Review, XXIII, 309-10; New York Herald, Aug. 18. "Ibid., Aug. 19; Cong. Globe, 34 Cong., 3 Sess., 125-126. "New York Herald, Aug. 19; DeBow's Review, XXIII, 319. n lbid., XXIII, 313 ff. "The convention was not of a practical bent: a good part of two days was spent debating a resolution to exclude reporters of Northern newspapers. New York Herald, Aug. 17, 1857; DeBow's Review, XXIII, 302-305. "New York Herald, Aug. 17; DeBow's Review, XXIII, 306, 308. 142 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-! 86 1 [142 recommending the extension of state aid to steamship lines be- tween Southern and foreign ports. The Federal government was requested to grant to Southern steamship lines the same subsidies for carrying the mails that it granted to Northern lines. The meet- ing recommended patronage of home manufactories and of merchants who imported directly from foreign countries. Resolu- tions were adopted asking the Federal government to fortify the harbors of Port Royal, South Carolina, Mobile, Alabama, and Beaufort, North Carolina, and make them coaling stations for large government steamers. A resolution recommending taxation by the Southern states upon sales within their respective borders of articles manufactured in the North was rejected. A committee was appointed to memorialize Congress upon the subject of duties imposed by foreign countries upon American tobacco; 76 the duties imposed by some countries were very high, and it was felt that the American government had not made the effort it might have made to secure their reduction. The Pacific railroad was not mentioned. There were the usual resolutions relative to Southern education. The disposition to call for Federal aid for various purposes is noteworthy. In the earlier sessions of the Commercial Convention there had been a sprinkling of public men of more than local prominence, and, of course, a larger number of local politicians. The majority of the delegates came from towns and cities; but the planters had been well represented. In the earlier meetings, as in the later, there were editors, preachers, physicians, and professors; but there were also a large number of business men, bankers, merchants, a few manufacturers, and men interested in promoting particular railroad projects, steamship lines, or other enterprises, for which they hoped to secure the endorsement of the convention. By the time of the Knoxville convention this latter element had practi- cally ceased to attend. After the Knoxville meeting the dwindling conservative element also disappeared from the convention, and it fell everywhere into disrepute except among the disunionists, who continued to hope that it would serve some useful purpose in mak- ing Southern men acquainted with each other, in consolidating "The memorial is in DeBow's Review, XXIV, 291-300. 143] THE SOUTHERN COMMERCIAL CONVENTION 143 Southern feeling, and in harmonizing differences between different quarters of the South. 77 The Montgomery convention, May, 1858, was well attended. 78 The debates, as far as oratory was concerned, were more brilliant than those of any other session of the series. Among the orators were Henry W. Milliard and William L.Yancey, of Alabama, rivals of long standing. 79 But it was not a commercial convention; it was a gathering of disunionists. The Montgomery Daily Confederation said, "every form and shape of political malcontent was there present, ready to assent in any project having for its end a disso- lution of the Union, immediate, unconditional, final." 80 Edmund Ruffin, of Virginia, himself an ardent secessionist, found only two delegates outside the Virginia delegation who were not disunion- ists. 81 But the proceedings took a turn which all secessionists even, could not approve. Practically the whole time of the session was devoted to debating the question of reopening the African slave trade. The debate proved the delegates to be hopelessly divided, not only upon the expediency of reopening the foreign slave trade, but also upon the more practical question, whether or not agita- tion for the repeal of Federal laws prohibitory of the slave trade would promote or injure the cause of disunion. 82 Ridiculed both ''Address of the committee which called the Montgomery convention. Charleston Mercury, April 8, 1858; DeBow's Review, XXIV, 424-28. The Knox- ville (Tenn.) Citizen thought the call "an invitation to take counsel whether the Union can be longer maintained or is worth maintaining." Quoted in Charleston Mercury, April 20, 1858. "About 400 delegates were present from ten states. Proceedings, in DeBow's Review, XXIV, 574-606; Montgomery Daily Confederation, May 11-15, 1858. "Yancey's part in the convention is discussed at length in DuBose, The Life and Times of William Lowndes Yancey, 358 ff. Cf. Ruffin' s Diary, entry for May 13, 1858; DeBow's Review, XXIV, 583-88. ""May 18, 1858. "When the South gets ready to dissolve the Union, all she has to do is to reassemble the Southern Commercial Convention which met at Montgomery and give the word." Milledgeville (Georgia) Federal Union, quoted in the New Orleans Picayune, May 25, 1858. A. P. Calhoun, son of John C. Calhoun, and a disunionist per se, was president. ^Ruffiin's Diary, May 11, 1858. "Charleston Mercury, May 15, 1858. The press of South' Carolina was al- most unanimous in recommending that delegates be sent to Montgomery, think- ing the result would be to harmonize and consolidate the South. When, how- ever, the introduction of the slave trade question served only to sow seeds of 144 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM,l84O-l86l [144 in the North and the South, 83 denounced by the Union element in the South, and distrusted by the cooler headed disunionists, 84 the Vicksburg meeting, in May, 1859, was able to summon only a corporal's guard, chiefly of the more radical type of disunionists. For five days the convention indulged in heated debate upon the great questions confronting the South, particularly the reopening of the African slave trade, adopted a string of resolutions as long as those of its predecessors, and adjourned to meet again at the call of the president. 85 That gentleman chose not to issue the call; and, thus, rather ingloriously the Southern Commercial Conven- tion came to an end. There were reasons for the change in the character of the per- sonnel and the perversion of purpose of the Southern Commercial Convention other than the growing intensity of the sectional strug- gle and the aggressiveness of the disunion elements. With the exception of the one at Baltimore, these assemblies were practi- cally mass meetings. The task of insuring a large attendance was, in the majority of instances, left to a committee of the city council or board of trade of the city in which the convention was to meet. Delegates were appointed by governors, mayors, city councils, boards of trade, and meetings of citizens. In making their selec- tions they were governed solely by their own judgment; for no qualifications for membership were prescribed. Distinguished in- dividuals were sometimes invited by the local committee; a general invitation was always extended to editors. Not a tenth part of those designated as delegates attended. No one participated in the dissension, the press of the state very generally condemned it. Camden, (S. C.) Journal, quoted in the Montgomery Daily Confederation, May 15, 1858. Ed- mund Ruffin was very much disappointed at the turn the convention took, though he saw redeeming features. Diary, May 11-16, 1858. '"'"Was there ever such another gathering in all this world as the Vicksburg fire eaters' convention? Let Garrison and his motley crew of old women in breeches, and would-be-men in petticoats retire from the field. They are tame, flat and stupid compared with these fiery, fussy, belligerent, and terrible South- ern salamanders." New York Herald, May 18, 1859. "When Georgia and Alabama refused to appoint delegates, the Montgomery Daily Confederation remarked: "These Southern Commercial Conventions have run their course and we shall hear no more of them forever." May 14, 1859. "Proceedings in New York Herald, May 18, 21; DeBow's Review, XXVI, 713; XXVII, 94-103, 205-20, 360-65, 468-71 (taken largely from the New York Herald). 145] THE SOUTHERN COMMERCIAL CONVENTION 145 proceedings who had not been certified as a delegate; 86 but, it is evident, anyone who desired to attend could readily secure the necessary credentials. Thus there was nothing in the organization of the convention to present a change in the character of the personnel. When the convention failed to produce the results which its founders hoped for it, many of its early patrons confessed it a failure and ceased to attend it. This failure was due in large part to the inherent limitations of a convention as a means of effecting a revolution in commerce and industry. It was unreasonable to expect, as many seem to have expected, a convention to build railroads, establish steamship lines, erect cotton factories, or open mines. Numerous examples can be cited of individual local con- > ventions, particularly railroad conventions, held during the decades preceding the Civil War which aided greatly in crystallizing the sentiment of their respective communities in favor of particular railroad or other projects and in securing subscriptions to the capital stock. A few might be mentioned which powerfully influ- enced a city or state to embark upon an internal improvements program. But a convention representative of many so widely separated communities and so many conflicting interests as was the Southern Commercial Convention could not be expected to accomplish anything so tangible in character. The convention failed largely, however, to accomplish what it might legitimately have been expected to accomplish. The meet- ings were not well managed. No programs were made before convening; and no efforts were made to have subjects presented by those best prepared to discuss them. There was no steering committee. The rules of the House of Representatives were fol- lowed; the chair recognized the first to claim the floor, and debate was rarely limited. The most fluent orators were able to monop- olize the time of the convention to the exclusion of practical busi- ness men, whose counsels might have been more worth while. As the objects of the convention were not strictly defined, anyone with a hobby could secure a hearing. Too large a part of the time was spent in discussing panaceas, magnificent schemes like the Pacific railroad or the navigation of the Amazon. Things of just ""However, the conventions sometimes invited distinguished visitors present to participate in the proceedings as delegates. 146 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [ 146 as great importance but appealing less to the imagination, such as geological surveys, banking facilities, boards of trade, advertising, encouragement of home industry by correction of the irregularities of taxation systems or by bounties, were not taken up in real earnest. Immigration, except of negro slaves, was not discussed. No consideration was given the possibility of utilizing the poor white population in productive industry. No invitations were sent to foreign capitalists. Great faith was put in the efficacy of resolutions. All resolu- tions introduced were referred to a general committee composed of a number of delegates from each state, from which they were reported after due consideration to be acted upon by the whole convention. Resolutions deemed important were debated at length, and the voting thereon would not have been watched more jeal- ously had the convention been a legislative body framing the laws of the land. 87 Said the New York Tribune: "For a quarter of a century past she has been holding conventions, at which it has been resolved that Norfolk, Charleston, and Savannah should be- come great commercial cities, which obstinately they refuse to be." 88 The convention might have been employed to better advan- tage had it collected useful information in regard to economic conditions in the Southern states and disseminated it. Such a work would at least have contributed to a better understanding of the causes for the backwardness of the South a useful preliminary to a prescription of the remedies. The convention left no reports or publications, however, comparable even to the reports and ad- dresses of McDuffie, Hayne, Longstreet, and Mallory, of the direct trade conventions of 1837-1839. This was due to the disinclination of individuals to contribute anything, except speeches and resolu- tions, to make the convention a success. "Voting was by states. In some of the conventions (Memphis and Charles- ton) each state was allowed one vote, in others a number equal to the state representation in Congress. This system had some incongruous results; often one or two delegates from a poorly represented state cast the entire vote of the state, and thus had as much to do with determining the official action of the conven- tion as a hundred delegates from another state. ""Reprint, The North and the South, 1854. Also quoted in Charleston Cou- rier, April 24, 1854. "Much time is consumed in talking, and most scrupulous attention is paid to punctilio and the rules of debate .... but as soon as the fiat of the convention has gone forth, the members seem to think that their task is complete." 147] THE SOUTHERN COMMERCIAL CONVENTION 147 Time and again recess committees were appointed to investigate and report, to memorialize Congress or the state legislatures, and for other purposes. With a few exceptions they failed to do the work assigned them. At Memphis an able committee was named to prepare for publication and distribution, especially in the man- ufacturing districts of Europe, a full report of the peculiar facilities offered by the Southern and Western states for the manufacture of cotton. This was a very worth-while task. The committee was not supported in its labors, 89 however, and there is no record that it made any report. The Charleston convention appointed a com- mittee of three from each state to gather statistics and other infor- mation on mining, manufacturing, lumbering, milling, internal improvements, and capacities for trade and commerce in the South, to address the people, urge the legislatures to action in favor of education, manufacturing, shipbuilding, direct trade, and mining, and report to the next convention. The committee was divided into five sub-committees with able chairmen. 90 This com- mittee, notwithstanding the immensity of the task imposed upon it, might have performed a useful service had it gone intelligently to work. At the succeeding convention the chairmen of the sub- committees had no reports whatever, and the chairman of the committee transmitted certain documents and a letter relative to his duties. 91 Naturally this failure to take seriously the work assigned the committees tended to convince practical men that no good could come from these meetings. "But it cannot be expected," said one delegate, "that a commercial convention can produce any useful result when committees appointed by it pay no attention to subjects committed to them, after adjournment." 92 In the earlier sessions of the convention an apparently honest attempt was made to keep party politics out of the proceedings. It proved well nigh impossible to do so. Politics played a very large part in the life of the South; from the very first many of the delegates were politicians; and many of the matters which legiti- mately came before the convention had become party questions. Whig and Democratic members of the convention watched mem- "DeBotv's Review, XV, 268, 432. "Ibid., XVI, 635; XVII, 325. "Ibid., XVIII, 357. "Ibid., XVIII, 524, remarks of Albert Pike. 148 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84<>l86l [148 bers of the opposite political faith closely to see that they did not attempt to make political capital from the action of the convention. The more partisan journals approved or disapproved the conven- tion according as their party or the opposition party could better capitalize its proceedings. 93 At Memphis a political debate over resolutions calling upon the Federal government to appropriate money for the improvement of rivers and harbors was avoided with difficulty. 94 The opponents of Federal aid to internal im- provements, led by General John A. Quitman, forced the omission from the resolutions on a Pacific railroad, of a clause calling upon the government to build the main trunk. 95 At Charleston the same questions were fought over. It was evident that a large majority was willing to ask the government to improve rivers and harbors. 96 A Louisiana delegate threatened to speak all week before he would see the convention turned into a Whig meeting. Governor Chap- man, of Alabama, served notice that the next convention would see few delegates from Democratic Alabama if the resolution was passed. A Georgia Whig appealed to the convention to keep out party questions, and the resolution was withdrawn. 97 The intro- duction of party politics discredited the convention in the eyes of many who had hoped that some real good would flow from it in the way of promoting the material prosperity of the South. Defenders of the Southern Commercial Convention admitted the justice of many of the criticisms made of it both at home and in the North. They sometimes countered, however, with the com- plaint that the fault lay in the failure of Congress and the state legislatures to act upon the convention's recommendations. And, with a very few exceptions, it would be impossible to name any concrete suggestions which were acted upon. This defense over- ""Before the Charleston convention met, the Richmond Enquirer believed it would be composed of able and practical men and confidently hoped it would take action towards securing Southern commercial independence. But some of the views there expressed were too ''federal" to harmonize with the Enquirer's strict construction principles; and the convention was described as ''an abortion if not something worse." April 4, 14, 21, 1854. Two years later the Enquirer was again the champion of the convention. Jan. 28, 31, 1856. ^De Bow's Review, XV, 265. "Ibid., XV, 265 ff., 270 f. 'Ibid., XVII, 261. "Ibid., XVII, 400 ff.; New York Herald, April 19, 1854. THE SOUTHERN COMMERCIAL CONVENTION 149 looks the fact that the convention might have served the cause in other ways than through recommendations to legislative bodies; in fact, it is questionable how far the economic development of the South could have been promoted by legislation. But this aside. It was one of the inherent limitations of the convention that it could not legislate, but only recommend legislation. No doubt action by the state legislatures or by Congress in accordance with many of the recommendations of the convention would have greatly benefited the South. On the other hand, the recommen- dations were not always well advised, were often indefinite, and, in general, were not pressed upon the state legislatures and Con- gress with vigor. Defenders of the convention claimed for it important results in the way of creating public sentiment and educating the public in regard to its objects. It had aroused the public mind, they said, to the need of diversifying industry, fostering commerce, and de- veloping the South's natural resources. It had been the means of disseminating useful information, teaching the South the extent of her resources, and pointing the way to their utilization. These claims are true to a degree. Perhaps the judgment of the New Orleans Picayune was as fair and as near the mark as could be made. When the movement was initiated, it said, practical men had hoped that at last the public would be aroused. To some extent this hope had been realized. The importance of commer- cial enterprise had been impressed upon the public mind. The necessity of manufacturing industry to local independence was generally acknowledged. The certainty of the ultimate growth and importance of Southern seaports, aided by the completion of pro- jected internal improvements, was perceived. These results were due in part to the Southern Commercial Convention. 98 Men of the disunionist faction, which had dominated the later sessions of the Southern Commercial Convention, claimed that the convention has been a potent means of uniting the South, consol- idating public opinion, and preparing the people for the crisis. It had made Southern men more extensively acquainted with each other, and had shown that, while they might disagree as to meas- ures, they were one in purpose. The convention had also taught the people that the South had resources sufficient to maintain herself "May 20, 1858. I5O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [150 as an independent nation. According to the Charleston Mercury, one result of the convention was a knowledge that nothing could be done in the Union to change the course of Southern commerce; and "To know our condition, is the first great requisite for alter- ing it." 99 These claims may be admitted with qualifications. The meetings of the Southern Commercial Convention no doubt con- tributed to the spread of disunion sentiment; but it was through declamation rather than argument. They were conducive to pas- sion and resentment rather than clear thinking and sound judg- ment. While they brought men from widely separated states together in a common cause, they also exposed to view the divi- sions in Southern opinion, the discordant elements, the local jealousies, and the inability of too many Southern men to rise above petty politics. Finally, they countenanced the agitation of a question, the reopening of the foreign slave trade, which bade fair to wreck the disunion cause altogether. The Southern Com- mercial Convention did not tend to put the disunion cause upon a high plane. Perhaps the chief significance of the Southern Commercial Con- vention for the student of the period lies in the fact that a conven- tion professing the purposes which it did, met year after year, attracted a considerable degree of interest, and, as long as it re- tained its original purpose of regenerating the South, commanded the good will of a great majority of the Southern people. M May 16, 1858. CHAPTER VI ATTITUDE TOWARD PROTECTIVE LEGISLATION, FEDERAL, STATE, AND LOCAL, 1840-1860 The attitude of the South upon the tariff was determined in the main by the dominant economic interests of the section. The South was practically unanimous in opposition to the Tariff of 1828. One state went to the extreme of declaring it and the amend- ments of 1832 null and void. There was much sympathy with this action in other Southern states, particularly Georgia. The South- ern delegation in Congress was all but unanimous in voting for the Compromise Tariff of 1833. At this period the demand for protection came only from the hemp growers of Kentucky and Missouri, the sugar planters of Louisiana, and mining interests in Virginia and Maryland. In the early years of its existence the Whig party in the South was more strongly anti-tariff than the Democratic. As late as 1840 the party, because of divisions in its ranks, went before the coun- try without committing itself upon the subject. In 1842, however, Southern Whigs in Congress, with a few exceptions, were whipped into line in support of the protective tariff measure of that year. 1 Again in 1844, during a presidential campaign in which Henry Clay, the champion of the "American System," was the Whig candidate, every Southern Whig member of the House of Repre- sentatives but one voted against the McKay bill, which was sup- ported by every Southern Democrat but one. 2 The action of the Whigs may be attributed chiefly to political considerations; South- ern Whig leaders felt the need of a broadly national conservative party, and recognized that it could be built only upon the basis of compromise. 3 In 1842 the state of the public treasury impera- tively demanded an increase in the revenues, so that the tariff of that year could be plausibly defended as a revenue measure offer- ing incidental protection by discriminatory schedules. 4 In 1844 'Cole, Whig Party in the South, 98, 99. "Cong. Globe, 28 Cong., i Sess., 622; NileS Register, LXVI, 177. 3 Cole, op. cit., loo; National Intelligencer, Jan. 4, 1844, letter of Wm. A. Graham accepting the Whig nomination for governor of North Carolina; ibid., Jan. 13, letter from Wm. C. Rives; ibid., Jan. 20, Feb. 15, Mar. 7. *National Intelligencer, Mar. 19, 1844, address to the people of Virginia on the Tariff of 1842 by the Whig State Convention. 152 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [152 repeal could be opposed upon the grounds that the revenues were still required, and that the tariff was working well. 5 Whigs pointed to the signs of reviving prosperity after the panic of 1837 as evi- dence that the tariff was not injuring the South. Furthermore, they welcomed the cotton factories which were springing up here and there throughout the Southern states as a justification of the protective policy, and prophesied that soon the divergence of inter- ests between the sections, upon which the division on the tariff issue was based, would cease to exist. 6 They charged the slow progress of manufactures in the South to the hostility of the Democratic party, and declared the absence of diversified indus- try to be the cause of the declining prosperity which all deplored. 7 Southern Democrats in Congress were unanimous in opposing the Tariff of 1842; but the majority at that time did not hold extreme views. In 1843 Calhoun came forward as the free trade and reform candidate for the Democratic nomination for the presidency. Finding his chances poor, he wrote, early in 1844, a letter announcing his withdrawal. 8 The section devoted to the tariff was too extreme for his friends outside of South Carolina, and at their request was modified before the letter was published. 9 The McKay bill, upon which an attempt was made to unite the Democratic party in the summer of 1844, was a moderately pro- tective measure. 10 Although there was considerable dissatisfaction with it among Southern Democrats, every Southern Democrat in the House but one voted for it. 11 When a faction in South Caro- lina proposed to take the defeat of the McKay bill by the defec- tion of twenty-seven Northern Democrats and the subsequent publication of Folk's "Kane Letter," designed to hold Northern tariff Democrats in line, as proof positive that no relief from the 'Cong. Globe, 28 Cong., I Sess., 511, 612; National Intelligencer, Aug. 6, 1844, quoting the Charleston Courier. *Niles' Register, LXII, 71; LXVII, 132, quoting the Vicksburg Whig; Cong. Globe, 28 Cong., i Sess., 512, Berrien, of Georgia, in the Senate. 'See ante, pp. 37-41. *Works, VI, 239-54; National Intelligencer, Feb. 3, 1844. "''But I soon found, it was altogether too high to be sustained by a large portion; much the majority; and among them many of the most intelligent and devoted." Calhoun to Jas. Edw. Calhoun, Feb. 14, 1844, Calhoun Correspond- ence; Calhoun to Duff Green, Jan. 15, 1844. K Cong. Globe, 28 Cong., i Sess., 369, text of the bill. "Ibid., 28 Cong., I Sess., 622; N lies' Register, LXVI, 177. 153] ATTITUDE TOWARD PROTECTIVE LEGISLATION 153 burdens of protection could be expected from the Democratic party, and sought to put the state again "upon its sovereignty," they received remarkably little sympathy outside their own state. A correspondent of the Charleston Mercury wrote, "It is not to be disguised that, out of South Carolina, the whole tariff battle has to be fought over." 12 The Walker tariff, enacted in 1846 after a sharp struggle, was by no means a free trade measure. 13 Tea and coffee were put on the free list; raw materials used in manu- factures were taxed only five per cent; duties on most manufac- tured articles were high enough to afford considerable incidental protection to those engaged in their manufacture; whereas the Compromise tariff of 1833 had recognized the principle of a hori- zontal rate, the Walker tariff contained nine schedules. Upon the whole, the bill was satisfactory to Southern Democrats. Senator Haywood, of North Carolina, however, resigned his seat rather than vote for it. 14 He opposed it because it abandoned the prin- ciples of the McKay bill, upon which the party had appealed to the country; it broke faith with Northern Democrats; it would not meet the demands for revenue created by the Mexican War; it did not give sufficient notice to interests formerly protected; and together with the independent treasury constituted too great a revolution in the government's financial policy. On the other hand, the bill was not revolutionary enough to satisfy some of the free trade members from South Carolina and other cotton states, and they voted for it only because they considered it a decided im- provement over the Tariff of 1842, and because nothing better could be secured. 15 The election of 1844 nac ^ cut down materially the number of Southern Whigs in Congress. With two exceptions in the House and one in the Senate, they voted with their colleagues of the North against the bill. 18 After a few years Southern Whigs mani- fested a disposition to acquiesce in the continuance of the Walker tariff, and for several years the tariff was not an issue in Southern politics. Whigs contended that in yielding opposition to the exist- "Quoted in Niles' Register, LXVI, 435. "Cf. Dewey, Financial History of the United States, 249-52. "''Address of Honorable Wm. H. Haywood, Jr., to the people of North Car- olina," etc., in National Intelligencer, Aug. 19, 1846; Niles' Register, LXX, 410-15. "Cong. Globe, 29 Cong., i Sess., 1043, W. L. Yancey's speech in the House. "Ibid., 1053, 1157. 154 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [154 ing tariff they abandoned none of their principles; for, they said, the duties were high enough to afford a fair degree of protection, and protective principles were recognized. From time to time, par- ticularly from the border states, there came restatements of the arguments for a protective tariff and reaffirmations of the faith. In 1849, when the Southern people were interested in the possibility of developing cotton manufactures, a suggestion from Hamilton Smith, of Kentucky, that the Constitution should be amended to permit the imposition of an export duty upon raw cotton was re- ceived in some quarters with favorable comment. 17 As long as the tariff was a party issue the opponents of protec- tion were inclined to oppose the introduction of manufacturing. Men too often confused manufactures and protection, and in op- posing the latter were led into hostility to the former. Calhoun, indeed, always protested that he was not opposed to manufactures as such, 18 and the same may be said of other leaders. But, in gen- eral, there was a feeling that the establishment of diversified in- dustry would take the edge from the anti-tariff sentiment. 19 The advocates of diversified industry had to be very chary in asking for fostering legislation, especially in Democratic states. They fre- quently gave the assurance that the only thing needed in the way of encouragement was liberal incorporation laws and freedom from discriminatory taxation. It was difficult to secure even the passage of general corporation laws. Corporations were unpopular in the forties as a result of the experience of the previous decade with banking institutions, in particular. In 1847-1848 the question of granting liberal charters to corporations for manufacturing pur- poses became a political issue in Georgia. Governor Crawford, Whig, recommended such legislation. He was supported by the Whig press and a portion of the Democratic press. Other Demo- ""I enclose you a letter of Ex. Pres. Tyler. The only objection he makes to my first proposition is that it would act as a bounty to foreign cotton growers." Smith to Hammond, Mar. 4, 1849, /. H, Hammond Papers. Cf. Smith to Ham- mond, Aug. 14, 1849; DeBow's Review, VII, 48 ff. Smith's suggestion was first made in two letters to the Louisville Journal. The idea was amplified by S. R. Cockrill, a planter, of Tennessee. DeBow's Review, VII, 484-90; Western Journal and Civilian, III, 95-106. "Calhoun to Abbott Lawrence, May 13, 1845, Calhoun Correspondence; Works, IV, 183-84. "Niles' Register, LXVIII, 374 (Aug. 16, 1845), quoting Charleston Mercury. 155] ATTITUDE TOWARD PROTECTIVE LEGISLATION 155 cratic organs, however, were persuaded that Crawford's sugges- tions were parcel of a design to "quench the growing spirit of Democracy everywhere," and "ride us down by the Massachusetts policy of incorporated wealth, under the false plea of 'developing our resources.' " 20 The general incorporation laws were enacted. 21 In 1850, Governor Seabrook, of South Carolina, wrote William Gregg asking what measures he considered necessary for the en- couragement of manufactures. Gregg replied that he considered unnecessary and unwise any pecuniary aid from the state either in the form of loans or otherwise. The only thing needed was the "privileges and advantages granted in other states in the use of associated capital." He told how cheaply goods were being made in the Graniteville factory; this fact, he said, should "disarm all opposition from those who fear that we may ultimately join the Northern people in a clamor for protection .... " 22 After the Walker tariff had been in effect a few years, and the tariff controversy had abated, opposition to diversified industry on anti-protectionist grounds gave way to a considerable extent, and many anti-tariff men and journals strongly supported the movement to bring the spindles to the cotton and to diversify in- dustry generally. Typical of their reasoning was the reply of the Richmond Enquirer to a Whig contemporary's charge of incon- sistency. Said the Enquirer: "We have never denounced home industry. We have, however, steadily denounced that hot-bed system of legislation, whose effect is to pamper one class at the expense of all others, and especially, to foster the monopolies of the North, which have flourished and grown fat upon the tribute of the South. It was to benefit home manufactures and not to destroy them that we opposed the tariff." 23 There was a common element in the contention of the free traders that the tariff ben- s Hopkins Holsey, editor of the Athens [Georgia] Southern Banner, to Howell Cobb, Dec. 3, 1847, Toombs, Stephens, Cobb Correspondence. "DeBow's Review, XVII, 257. 22 Gregg to Seabrook, May 10, 1850, Whitemarsh B. Seabrook Papers. The absence of general incorporation laws was not an insurmountable obstacle. Little difficulty was experienced in getting special characters through the legislatures. The session laws of the various states are full of such special legislation. "July 23, 1850. James H. Hammond, who certainly could not be charged with protective principles, carefully distinguished between manufactures and the protective system. DeBoui's Review, VIII, 508. 156 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [156 efited New England and Pennsylvania manufactures at the ex- pense of Southern agriculture, and the contention of those who labored for Southern industrial independence that it was the manufacture of Southern staples and the sale to the Southern people of numerous articles which should be produced at home which strengthened and enriched the North while weakening and impoverishing the South. Both arguments represented one section as paying tribute to the other. This common element made it easy for anti-tariff men to support efforts being made to diversify Southern industry. When the desirability from both the economic and political viewpoints of making the South commercially and industrially independent of the North was understood, it was inevitable that a demand should arise for the protection of home enterprises against Northern competitors. A tariff might protect American industries from European competition; but more dangerous to the infant industries of the South than foreign competition were the firmly established industries of the North. In fact, in the forties several Southern states intermittently dis- criminated in their tax laws in favor of home manufactures. The laws of Virginia in 1840 and a number of years thereafter ex- empted articles made within the state from the tax on sales. 24 By act of 1843 South Carolina exempted from this tax "the products of this State, and the unmanufactured products of any of the United States or Territories thereof." 25 Alabama also, by an act of January 15, 1844, exempted articles manufactured within the state from the tax on sales. 26 Taxation during the period was very light, and these exemptions amounted to little. There were also as many cases of exemptions of other classes of property from taxation, for example, farm implements and mechanics' tools. In the tariff debates of 1844 an ^ 1846 anti-tariff men from the South referred to the possibility of adopting a policy of state pro- tection. "If the protective policy," said R. B. Rhett, "is wise and just with foreign nations, it must be equally so between the States, for there is far more intercourse and affinity of interest between portions of the United States and foreign nations, than between M Acts of the General Assembly of Virginia, 1839-184.0, act of Mar. 3, 1840. ^National Intelligencer, Aug. 10, 1844, "Precept and Practice of South Car- olina." **Acts of the General Assembly of Alabama, 1843-1844, p. 65. 157] ATTITUDE TOWARD PROTECTIVE LEGISLATION 157 different portions of the Union." 27 George McDuffie threatened, in 1844, to resign his seat in the United States Senate, secure a seat in the South Carolina legislature, and bring forward a propo- sition to tax all manufactured goods brought into the state. 28 Seaborn Jones, of Georgia, also suggested that Southern states had a remedy at hand for unjust taxation in "countervailing legisla- tion, putting excise duties upon manufactured articles which have not paid revenue duty to the Government." 29 During the political crisis of 1850 and thereabouts many pro- posals were made in the South for non-intercourse with the North, discriminatory taxation of Northern manufactures, exclusion of Northern ships from Southern harbors, cessation of business and pleasure trips to the North, withdrawal of subscriptions to North- ern newspapers, and a number of other measures of the same general character. They can be attributed chiefly to a desire to retaliate against the anti-slavery party, to arouse the business interests of the North to the necessity of curbing the abolition agitation, and to teach the North the "money value of the Union"; but it was an added recommendation that these measures would tend to promote commercial and industrial independence. J. C. Calhoun wrote to public men throughout the South requesting their views upon two lines of procedure for bringing the North to a sense of justice. One was the assembling of a Southern conven- tion, the other, retaliation against Northern states for unconstitu- tional acts. 30 In one of these letters he suggested that closing Southern ports to Northern seagoing vessels would promote direct trade with Europe. 31 In the Nashville Convention of 1850, retaliation was supported by a minority as a proper measure to employ in case the North did not grant justice to the South. 32 At the adjourned session, November, 1850, the Tennessee delegation supported resolutions "Cong. Globe, 28 Cong., i Sess., Appx., 658. "NUei Register, LXVI, 230. ""Cong. Globe, 29 Cong., i Sess., 991. ""Wilson Lumpkin to Calhoun, Nov. 18, 1847; Joseph W. Lesesne to Calhoun, Sept. 12, 1847; H. W. Conner to Calhoun, Nov. 2, 1848; Calhoun to John H. Means, Apr. 13, 1849, Calhoun Correspondence. "Benton, Thirty Years' View, II, 698-700, quotation from a letter from Cal- houn to a member of the Alabama Legislature, 1847. 32 See above, pp. 73-76, for a discussion of the Nashville Convention. 158 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [158 which accepted the recently adopted compromise, outlined the line of conduct Northern states would be expected to pursue in the future, and recommended that, in case this line should be transgressed, the people of the South resort to the "most rigid system of commercial non-intercourse" with all offending states, cities, and communities. The legislatures of the several states were invited to join in the recommendation. Counties, towns, and neighborhoods were asked to adopt resolutions against purchasing or using articles from offending Northern states or communities. To make it possible to follow these recommendations, it was fur- ther recommended that the states encourage their own mechanics and manufactures, and push forward their internal improvements to the seaboard. 33 In Virginia such a remedy met with considerable favor. When, after the passage of the Compromise of 1850, a disposition was shown in the North, particularly in Boston, not to acquiesce in the execution of the Fugitive Slave law, Virginians took fire, and a strong sentiment for retaliation developed. The citizens of Prince George County met for the purpose of forming a Southern rights association. 34 Resolutions were adopted pledging those present to buy in the North no coarse cottons or woolens, ready made cloth- ing, carriages, buggies, plows, axes, harness in general, nothing which could be produced in the South or obtained from Europe. The resolution furthermore pledged them to employ no Northern teachers; to withdraw patronage from Northern schools, newspa- pers, and books; to take no pleasure trips to the North; to buy of no merchant or employ no mechanic not identified with the South; and to employ no vessels owned or commanded by a North- ern man or manned by a Northern crew. 35 Similar associations were formed in other counties. 36 The most important and per- manent of the Southern rights associations in the state was the Central Southern Rights Association of Virginia, which was organ- "National Intelligencer, Nov. 16, 19, 1850; A. V. Brown, Speeches, Congres- sional and Political, etc., 318-21 (text of the resolutions );DuBose, Life and Times of Yancey, 248; Speech of the Hon. Langdon Cheves in the Nashville Conven- tion, p. 20. "Richmond Enquirer, Nov. 15, 1850. "Ibid., Nov. 20, Dec. 10, 1850. *Ibid., Dec. 31, 1850. 159] ATTITUDE TOWARD PROTECTIVE LEGISLATION 159 ized in Richmond in December, 1850," and continued in existence until the outbreak of the Civil War. Some of the ablest and most prominent men of Richmond and the state at large were members. The members were pledged to "use all lawful and constitutional means in our power to arrest further aggressions of the non-slave- holding states," and to appeal to the legislature of the state to enact such laws as were "prudent and constitutional for effecting, ultimately, commercial independence" of such states as by laws or otherwise sought to prevent the execution of the Fugitive Slave law. 38 The first petition addressed by the association to the State Legislature requested the passage of excise tax laws discriminating in favor of articles of Virginia manufacture or of direct importa- tion from abroad. Such taxation was believed to be the most certain means of securing ultimately Virginia's commercial inde- pendence and the safety of her property and institutions. 39 A year earlier Governor Floyd had suggested discriminatory taxation in a special message to the General Assembly. 40 In No- vember, 1850, he introduced the subject in the state Constitutional Convention. 41 In his last message to the General Assembly, shortly after, he again recommended it. 42 As a member of the Legislature he championed a bill to impose a tax of five per cent on all goods brought into the state for sale except direct imports. 43 The Dem- ocratic press of the state generally supported the plan of discrim- inatory taxation. 44 In the opinion of the Richmond Enquirer, it would check the abolition movement in the North, "give tone and strength to Southern manufactures, commerce and all the interests of the South," and ward off disunion. 45 The Enquirer charged the Whigs with inconsistency in opposing Floyd's proposal while ad- vocating a higher tariff. 46 The conservative press generally op- "Richmond Enquirer, Dec. 10, 13, 17, 24, 31, 1850. ^Virginia Documents, 1850-1851, doc. LX, "Petition of the Central Southern Rights Association of Virginia, and Accompanying Documents," p. 5. w lbid., doc. LX; DeBow's Review, XII, 109. "Richmond Enquirer, Nov. 15, 1850. "Ibid., Nov. 19, 1850. Ibid., Dec. 3, 1850; Virginia Documents, 1850-1851, doc. I. "Richmond Enquirer, Jan. 31, 1851. "Ibid., Nov. 15, 22, 1850, quoting a number of Virginia newspapers. "Dec. 13, 1850. "Dec. 17, 1850. l6o ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [l6o posed the plan. 47 They denounced it as calculated to lead to a dismemberment of the Union and as "subversive of the true in- terests of the Southern states." In the North it would not injure the abolitionists but rather the friends of the South; for the former were not engaged in commerce. It was said to be unconsti- tutional; the National Intelligencer called it "another form of nulli- fication." 48 In opposing Floyd's proposal the Whigs resorted to good free trade arguments : Virginia must depend upon the North for materials with which to construct her internal improvements; she could not rely upon her own resources. Were discriminatory taxation imposed, the North would lose a market, and both sec- tions would be sacrificed to the cupidity of England. The tax would be paid by the consumer. 49 The Whigs were not, of course, animated by any feeling of hostility to the cause of Southern com- mercial and industrial independence. Senator Berrien, of Georgia, a Whig, in public speeches ex- pressed views similar to those of Governor Floyd. At Macon he was reported to have said that he did not wish the Georgia Con- vention to propose non-intercourse nor an import tax, as both would be unconstitutional; but he thought it best to recommend a measure by which Northern goods, after they had arrived in Georgia and had been delivered into the hands of the merchants, should be charged with a high and discriminatory tax. Such a measure would encourage Georgia manufactures, greatly abridge importations of Northern goods, and arouse the North to a sense of the power of the South to protect herself. 50 In Alabama, South- ern rights associations were formed, and resolutions adopted similar to those adopted by the associations in Virginia. 51 In Mississippi, members of the Southern rights party expressed them- selves in favor of excluding by legislative enactment goods manu- factured north of Mason and Dixon's line. 52 In South Carolina, after the passage of the Compromise of 1850, public opinion was, as we have seen, widely divided in regard to "Richmond Whig, Jan. 2, 22, Feb. 12, 1851; National Intelligencer, Dec. 9, 12, 17, 28, 1850. *T)ec. 17, 1850, editorial. "Richmond Whig, Jan. 2, 22, 1851. ""Richmond Enquirer, Nov. 15, 1850. "Ibid., Nov. 22, 1850; DeBow's Industrial Resources, III, 122. "'Cong. Globe, 32 Cong., I Sess., Appx. 284. l6l] ATTITUDE TOWARD PROTECTIVE LEGISLATION l6l the proper policy to be pursued. In the hope of unifying the state, J. H. Hammond brought forward a "Plan of State Action," which, although not adopted, met with considerable favor. 63 He proposed that the State Convention declare the right of secession; prohibit citizens from holding Federal offices outside the state; refuse to accept Federal appropriations for any purpose; impose a double tax upon the property of non-residents; "as far as it constitutionally may," impose taxes upon manufactures of non- slaveholding states; encourage manufactures by granting liberal charters to companies; encourage agriculture; and with state funds "aid in the establishment of direct commercial intercourse with foreign nations, by steamships adopted to purposes of war, in case of need." Already Governor Seabrook had recommended the encouragement of manufactures by liberal corporation laws 54 and the Legislature had discussed a proposal to levy discriminatory taxation upon Northern goods. 55 A bill was introduced in the North Carolina Legislature, No- vember, 1850, to impose a tax of ten per cent upon goods brought into the state from non-slaveholding states after January i, i852. 56 The House of Commons adopted resolutions introduced by a Whig member which declared 57 that ( I ) North Carolina was absolved by the abolition agitation from further obligation to protect Northern manufactures by a tariff; (2) if North Carolina industries re- quired protection, it could be "better effected by State than by Congressional Legislation;" (3) the Walker tariff was high enough; (4) and requested that members of Congress from North Carolina vote against any increase. These resolutions were adopted by votes of 105-2, 62-32, 75-18, and 84-8 respectively, Whigs as well as Democrats composing the majorities. 68 Even before these reso- **/. H. Hammond Papers, No. 22,198, a broadside printed by the Charleston Mercury, accompanied by a note to the editors, dated April 29, 1851; Hammond to Wm. Gilmore Simms, April 29, 1851; A. P. Aldrich to Hammond, May 16, Nov. 10; Hammond to Simms, May 29, July i; Maxcy Gregg to Hammond, Nov. 14, 1851. Edmund Ruffin to Hammond, Nov. 13, 1851. ^Richmond Enquirer, Dec. 3, 1850. "National Intelligencer, Dec. 9, 12, 1850. ""Richmond Enquirer, Nov. 29, 1850. "Richmond Whig, Jan. 17, 1851. **Cong. Globe, 31 Cong., 2 Sess., Appx. 206, Thomas L. Clingman, in the House, Feb. 15, 1851. l62 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [l62 lutions had been adopted, Southern Whig members of Congress, particularly from North Carolina, had defeated attempts made in the first session of the Thirty -first Congress to revise the tariff upward in the interest, chiefly, of the Pennsylvania iron industry. 59 The action of the North Carolina Whigs was indicative of a marked falling off in tariff sentiment in the South. So staunch a protectionist organ as the Richmond Whig wavered in its faith, and warned manufacturers that they need not expect further pro- tection. 60 For several years after the attempt of the iron interest in 1850 to secure higher duties, the tariff question was not before Congress or the country except for occasional attempts of Southern and Western congressmen to secure the remittance or repeal of the duty on railroad iron. North as well as South came to ac- quiesce in the Walker tariff, with the exception, in the South, of men of the South Carolina school, who professed to find the Tariff of 1846 oppressive, just as they had found that of 1842 to be. 61 The Walker tariff, however, proved an excellent revenue pro- ducing measure, receipts exceeded expenditures, and an accumu- lating surplus in the treasury finally forced Congress to undertake revision. A late attempt in the second session of the Thirty-third Congress, March, 1855, failed; 62 but it was generally understood that the next Congress must act. Contemporaneously, agitation was started by extreme anti-tariff men in the South for the aban- donment of the tariff system altogether and the substitution of direct taxation. In the Southern Commercial Convention, Savan- nah, December, 1856, resolutions were reported which pronounced the tariff to be the cause of the decline of Southern commerce and declared for absolute free trade and direct taxation. 63 The reso- lutions were not adopted, but were referred to a committee in- structed to report at the next convention. '"Cong. Globe, 31 Cong., i Sess., 1728, 1812, 1951; ibid., 31 Cong., 2 Sess., Appx. 206, Clingman's explanation of the action of North Carolina men. ""Jan. 17, Feb. 12, Mar. 19, 21, and 31, 1851. 61 Cong. Globe, 32 Cong., 2 Sess., 35, Woodward, of South Carolina, in the House, Dec. 10, 1852. 62 The House attached sections reducing the tariff as a rider to the Civil and Diplomatic bill, the Senate struck them out. Ibid., 33 Cong., 2 Sess., 914, 1088, 1178. "DeBow's Review, XXII, 92. 163] ATTITUDE TOWARD PROTECTIVE LEGISLATION 163 The Tariff of 1857 was passed after short and rather desultory debates in the House and Senate. The debates contained remark- ably little of a sectional nature, and the only interests greatly dis- satisfied were the iron manufacturers and the wool growers. The bill as finally passed was written by Senator Hunter, of Virginia. As did Secretary of the Treasury Guthrie, Hunter took a fairly liberal attitude toward the manufacturing interests. 64 The rates were somewhat lower than those of the Walker tariff. In one re- spect, however, the bill was more in accord with protective prin- ciples than the former act; it provided for free raw materials where the demand was for manufactures. Cotton manufactures were favored by leaving the duties nearly as high as those of the Tariff of 1846. Some objection was raised by Southern members to the enlarged free list. The only out-and-out free trade views expressed came from South Carolina men. Senator A. P. Butler said, "Cotton would rise to twenty cents tomorrow ... if we had no tariff." 65 Representative W. W. Boyce, of Charleston, declared for free trade and direct taxation. 66 Only two Southern congressmen voted against the bill. 67 Outside Congress there was little dissatis- faction except among the ultras. DeBow, for example, was at first inclined to approve the measure as a step in the right direction, but later found that "the manufacturers have again had a victory in the adroit combinations made." 68 The free trade faction in the South followed up this partial vic- tory over protection by a general attack against every form of protection and privilege granted by the Federal government. In the Southern Commercial Convention, at Knoxville, August, 1857, W. W. Boyce again brought forward the proposal for free trade and direct taxation. A committee reported it adversely, while the debate showed sharp divisions of opinion. 69 A Virginia delegate offered resolutions declaring that the merchant vessels of foreign nations should be admitted to the United States coasting trade "Cong. Globe, 34 Cong., 3 Sess., Appx. 328 ff., speech in the Senate, Feb. 26, 1857; ibid., 36 Cong., i Sess., 3188. K Ibid., 34 Cong., 3 Sess., Appx. 350. "Ibid., 34 Cong., 3 Sess., Appx. 215 ff. "Ibid., 34 Cong., 3 Sess., 971; Appx. 358 (votes in the House and Senate). "DeBow's Review, XXII, 381, 554. "Ibid., XXIII, 305, 309, 310-15. 164 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84<>l86l [164 upon the same footing as our own. 70 Roger A. Pryor, of Virginia, secured the appointment of a committee to memorialize Congress for the repeal of the fishing bounties, which benefited New Eng- land particularly. 71 In the next session of Congress W. W. Boyce secured the appointment of a select committee of the House to inquire into and report upon a reduction of the expenditures of the government, the navigation laws, the existing duties on im- ports, and a resort exclusively to internal taxation. 72 As chairman of the committee, Boyce brought in an able and elaborate report, presenting all the free trade arguments. 73 Senator C. C. Clay, of Alabama, attacked the fishing bounties, and secured the passage through the Senate, 1858, of a bill repealing them. 74 He regarded this action as but the initial step to the repeal of the "ship-build- ing, coast-wise trade, and other monopolies now enjoyed by the North to the wrong of the South." 75 The policy entered upon dur- ing the preceding decade of subsidizing steamship lines by making liberal contracts for carrying the mails was repeatedly attacked by Southern Democrats led by Senator Hunter, of Virginia. 76 After June 14, 1858, no new contracts were made; finally, on October I, 1859, notice was given of complete abrogation of existing con- . tracts. 77 The Tariff of 1857 had been in operation but a few months when the financial crash of that year occurred. Imports fell off greatly, and shortly the treasury was confronted by a deficit. It soon be- DeBow's Review, XXIII, 306, Fuqua, of Virginia. "Ibid., XXIII, 307. The subject was not a new one. It had been brought up in previous commercial conventions, and time and again in Congress. See, e. g., ibid., XVII, 204, Ruffin in the Southern Commercial Convention in Charles- ton, 1854. "Cong. Globe, 35 Cong., I Sess., 509. "DeBow's Review, XXV, 1-27; Charleston Mercury, June i, 4, 1858. "Cong. Globe, 35 Cong., I Sess., 1930 ff., Clay's speech, May 4, 1858; ibid., 35 Cong., i Sess., 2239, vote upon passage of the bill. "C. C. Clay to VVm. Burwell, May 7, 1858, Wm. M. Burwell Letters. Cf. DuBose, Life and Times of W. L. Yancey, 368 ff., quoting letter from Yancey to Thomas J. Orme, May 22, 1858. "Hunter's most famous speech on the subject is in Cong. Globe, 32 Cong., i Sess., 1147 ff. (April 21, 1852). He termed the policy the adoption of the "protective system in one of its very worst forms." "Bates, American Navigation: the Political History of Its Rise and Ruin, 346 (a table of mail subsidy legislation); U. S. Statutes at Large, Act of June 14, 1858. 165] ATTITUDE TOWARD PROTECTIVE LEGISLATION 165 came apparent that another revision of the tariff would have to be undertaken. The discussion then provoked revealed that in certain quarters of the South the same feeling against the tariff existed as had been displayed in 1832 and 1844. After the Kansas question had been temporarily put at rest in the spring of 1858 by the passage of the English Bill, Senator Hammond told his constituents that the state could now remain in the Union "with honor." He gave warning, however, that an attempt would be made in the next session of Congress to increase the tariff, and declared that the "plantation states should discard any govern- ment" which adopted protection. "Unequal taxation is, after all, what we have most to fear in this Union." 78 A. P. Calhoun, in an address in which he advocated secession, also put the tariff foremost among the grievances of the South. 79 In Georgia there was a group of free traders, led by John A. Jones, who were as violent in their opposition to the tariff as were those of South Carolina. The Montgomery Daily Confederation thought free trade had already "culminated into universal sanction and adop- tion" in the Southern states, and pronounced "woe to the states- man that should attempt to lend himself to any move to restore" the protective system. 80 President Buchanan in his annual message, 1858, and Secretary of the Treasury Cobb in his annual report, both recommended a revision of the tariff; but the Democratic caucus considered it inexpedient to make any changes in the tariff during the session. 81 In the next Congress, the Thirty-sixth, the Republicans controlled the House. Justin S. Morrill, of Vermont, reported a bill whose level of rates was about equal to that of the Tariff of 1846, al- though it was constructed more in accord with protective prin- ciples. 82 The bill was passed over the opposition of the Democrats. 83 There was little sectionalism in the debates; few Southern men spoke upon the bill. Several Southern Democrats "Charleston Mercury, July 22, 1858, Feb. 3, 1859. "DeBow's Review, XXVI, 476. '"Feb. I, 1859. "Montgomery Daily Confederation, Feb. 3, 1859. si Cong. Globe, 36 Cong., i Sess., 1830 ff. "Ibid., 2056. l66 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [l66 declared their willingness to restore the Tariff of i846. 84 The Democratic Senate postponed action upon the bill until the short session, 1860-1861, when, after the secession of several Southern states had withdrawn a number of senators from the opposition, it was passed. On the very eve of the Civil War, however, there still lingered in some quarters of the South a sentiment for a protective tariff. The Louisiana sugar planters persistently demanded protection. 88 In Virginia, Tennessee, and North Carolina there were interests which asked for governmental encouragement. Even in South Carolina such men as Richard Yeadon, of the Charleston Courier, and William Gregg retained their tariff views to the end. 86 And in general, it is safe to say, the South as a whole was not com- mitted to free trade, but rather to a tariff for revenue with inci- dental protection. Many Democratic leaders admitted the propriety of discrimination in duties within the revenue limit. Only in South Carolina, if, indeed, in any state, would a majority have been willing to substitute internal taxation for duties upon imports. Nor can the general opposition to a high tariff, the agitation for free trade, and the concerted attack upon monopolies, bounties, and special privileges of all kinds be taken as proof that the doctrine of laissez faire had come to prevail in the South more than elsewhere. A protective tariff was opposed not only because it fostered manufactures at the expense of the planting interests, but also because the manufactures were in the North. Likewise, the fishing bounties were opposed not only because they were bounties, but also because they directly benefited only New Eng- land. The navigation laws were objectionable to Southern men not only because they enhanced freight rates in coastwise trade, but also because the shipping industry which profited thereby was almost a monopoly of the North. If we turn our attention to local policies, we find about as much disposition in the South as else- where to attempt by legislative enactments to modify the courses capital and labor might take. "Cong. Globe, 36 Cong., I Sess., 3187, Jefferson Davis in the Senate. Cf. Charleston Mercury, Feb. 26, 1859, quoting Rep. Taylor of Louisiana. "De Bow's Review, XXII, 320-25, 433-36; XXVI, 481. **Ibid., XXX, 102 f., for an expression of Gregg's views. 167] ATTITUDE TOWARD PROTECTIVE LEGISLATION 1 67 The policy of encouraging manufactures and direct trade by levying discriminatory taxes upon goods manufactured in the non- slaveholding states and upon articles imported from foreign coun- tries through Northern ports, or by offering bounties or granting exemption from taxation to home industries, was kept under ad- visement in the South until secession. In the Southern Commercial Convention in Charleston, 1854, General Tilghman offered in behalf of the Maryland delegation a resolution that the legislatures of the Southern states should encourage manufactures and com- merce "by the granting of bounties and all such other benefits and privileges as the powers reserved and possessed by the States may permit." 97 His arguments were strikingly similar to those which might be employed in the advocacy of a protective tariff. The con- vention appointed a committee upon the subject of promoting "Southern and Western manufactures and mining operations," and recommended the encouragement of direct trade either by exempting the goods imported from taxation or by allowing direct importers an equivalent drawback or bounty. 88 D. H. London, president of the Central Southern Rights Association of Virginia thought: "If there were absolute free trade, Southern ports would soon surpass the North, not only in commerce but in industry and arts." Since, however, it was impossible to secure free trade, he thought the state legislatures should place an excise tax upon in- direct imports. 89 In Georgia, in 1854, a proposal was being discussed to exempt from taxation property of corporations engaged in manufactur- ing. 90 At the same time, Nelson Tift, of the Albany Patriot, and others were advocating as a purely retaliatory measure the imposi- tion of a tax of one hundred per cent upon the sale of goods from states which did not observe their constitutional obligations. 91 A Democratic party convention, 1855, unanimously adopted resolu- tions requesting the Legislature to enact effective retaliatory measures. 92 Somewhat different was the proposal submitted by "DeBow's Review, XVII, 255. Ibid., XVII, 254, 258. ""Charleston Courier, Mar. 16, 1854, D. H. London to F. W. Connor. "DeBow's Review, XVII, 257. n lbid., XVII, 399; Savannah Republican, Dec. 25, 1856. "Phillips, Georgia and State Rights, 183. l68 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [l68 Robert Toombs to the Southern Commercial Convention in Savannah the following year. 93 He proposed to secure direct trade "by imposing a State tax of per cent, ad valorem upon all goods, wares, and merchandise offered for sale within the State, other than those which shall be imported from foreign countries." The rate should be high enough to prevent all indirect importations of foreign merchandise and "to raise sufficient revenue for all the wants of the State, without imposing upon the people any capita- tion or other direct tax whatever." "Levy our taxes on con- sumption," he said; "it can be more easily paid; we shall then fill our treasury to the extent of our wants, protect ourselves against the unjust legislation of our sister States, bring direct trade to our ports, give profitable employment to our capital and labor, educate our people, develop all our resources, and build up great, powerful, and prosperous commonwealths, able to protect the people from all dangers from within and from without." Such a tax, with the exemption of direct imports, would be constitution- al, he said, and could be easily collected. This plan, it will be observed, did not call for discriminatory taxation upon sales of Northern made goods; it would have operated as hardly upon Georgia manufactures as upon those of New England. Toomb's proposal was not widely endorsed. 94 The Southern Commercial Convention which met at Richmond, January, 1856, adopted by acclamation a resolution recommending the release of direct importations from license fees. 95 About the same time ex-Governor Floyd introduced a bill in the Virginia House of Delegates providing for an excise tax upon goods brought into the state for sale except goods directly imported from abroad. 96 Attacks were made upon the merchants' license tax and the tax on sales, which were imposed both by the state and mu- nicipal governments. 97 These taxes were said to act as bounties to induce retail merchants to go outside the state to purchase their stocks; for if they bought of home jobbers who, in turn, bought * 3 DeBow's Review, XXII, 102 ff. The latter was headed, Washington, Ga., Dec. 6, 1856. "Savannah Republican, Dec. 22, 25, 1856, quoting other journals. m De Bow's Review, XX, 351. ""Richmond Enquirer, Feb. 16, 20, Mar. 14, 1856. "Ibid., March 2, 5, 1856, letters signed "Junius." 169] ATTITUDE TOWARD PROTECTIVE LEGISLATION 169 of Virginia importers, the consumers paid the taxes three times, whereas if the retailers bought in states where no such taxes were levied, the consumers paid the taxes only once. 98 The Finance Committee of the House of Delegates was dominated by the plant- ing interests of the tidewater region, and proposals for tax reform met little favor." However, a provision was included in the tax bill of 1856 allowing the importing merchant a deduction from the amount of sales on which he paid license tax equal to the value of the goods imported by him plus the duties paid upon them. 100 This was not a very considerable concession; for a sales tax upon imported goods sold in the original packages was unconstitu- tional. 101 . After the John Brown Raid at Harper's Ferry, October, 1859, the Central Southern Rights Association of Virginia became active again. 102 In a memorial to the General Assembly it presented commercial independence as the "means of remedy and redress" for the grievances of the South. The memorialists asked that the pilot fees be decreased upon vessels owned in Virginia and upon vessels from foreign nations and increased upon Northern vessels engaged in the coasting trade. They would give bounties for direct importations of goods most needed within the state. They recommended that importing merchants be reimbursed for duties paid and exempted altogether from the license tax. 103 In response to the memorial the House of Delegates passed a bill exempting direct importations from all sales taxes. It was defeated in the Senate, largely by the votes of members from districts having the largest slave populations. 104 An act of February 29, 1860, exempted De Bow's Review, XX, 623; ibid., XXVIII, 316, argument of D. H. Lon- don, president of the Central Southern Rights Association of Virginia, before the General Assembly. "Richmond Enquirer, Feb. 20, 21, 1856, Report of the Finance Committee, Muscoe R. H. Garnett, Chairman. 100 Acts of the General Assembly of Virginia, 1855-1856, act of Jan. 5, 1856. A similar provision was in the tax act of Mar. 30, 1860. 10I Brown vs. Maryland, 12 Wheaton, 419; DeBow's Review, XXVIII, 178. ""Ibid., XXVIII, 356-7. Ibid., XXVIII, 173-182. Cf. ibid., XXVIII, 314-324, "Argument of D. H. London before the General Assembly of Virginia"; ibid., XXIX, 466-88, "Com- mercial, Agricultural, and Intellectual Independence of the South," by D. H. London. Ibid., XXIX, 471, 472. I7O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [170 vessels four-fifths owned in Virginia from the payment of pilot fees. 105 But so difficult was it to secure fostering legislation that an enactment ambitiously entitled an "Act to Encourage Direct Foreign Trade" provided only for the exemption of Virginia flour from the small inspection fees if exported in ships four-fifths owned in Virginia. 106 In other Southern states, legislation similar to that proposed in Georgia and Virginia was advocated. Louisiana, by act of the Legislature, March 18, 1852, offered a bonus of five dollars per ton for every ship of over one hundred tons built in the state. 107 There was sentiment in the state for the extension of aid in a similar manner to other industries. 108 The Alabama Legislature exempted the sale of all foreign goods directly imported into the Southern states from any description of state, county, or city tax- ation. 109 South Carolina exempted goods imported in vessels owned in the state from taxation while in the hands of the im- porters. 110 In Mississippi discriminatory taxation was advocated both as a means of retaliation against Northern aggression and of promoting direct trade and developing manufactures. 111 In Ten- nessee there was discussion of the desirability of liberalizing the tax laws. 112 - Tennessee and South Carolina appropriated money in aid of mechanics' institutes whose purpose was to encourage manufactures and the mechanic arts. 113 The legislatures of North Carolina, Alabama, Mississippi, and Arkansas took a first step toward developing the mineral resources of those states by pro- viding for geological surveys. 114 of the General Assembly of Virginia, 1859-1860, p. 145. Ibid., 167, act of Mar. 31, 1860. Acts of the Legislature of the State of Louisiana, etc. 129. The act was somewhat modified three years later. Act of Mar. 15, 1855. 108 New Orleans Picayune, Jan. 17, 1858; Kettell, Southern Wealth and North- ern Profits, 66. . lw DeBow's Review, XXVIII, 492. ""Richmond Enquirer, Mar. 24, 1854, Mar. 5, 1856. DeBow's Review, XXIX, 233-6, 545-61; Charleston Mercury, Nov. 24, 1859, message of Governor McWillie, of Mississippi, Nov. 8. "'Republican Banner and Nashville Whig, Oct. 6, 1856, message of Governor Andrew Johnson. "'DeBow's Review, XXIX, 499. Ibid., XXIV, 403 ff.; XVII, 677 ff.; XXVII, 350. I7l] ATTITUDE TOWARD PROTECTIVE LEGISLATION 17! The sum total of protective legislation enacted in the South, either in the form of discriminatory taxation upon Northern goods, exemption of home manufactures and direct imports from state taxation, or in the form of bounties, was small. The fact cannot, however, be taken without qualification as due to the prevalence of free trade opinions. Discriminatory taxation was advocated as a mode of retaliation for the aggressions of the North as well as a measure of political economy. It was a remedy decidedly unfriendly to the North, subversive of one of the primary pur- poses of the Constitution, and likely to disturb the peace between the sections and lead to disunion. It was extremely doubtful that laws could be so framed as not to be held in violation of the Federal Constitution and, for that matter, the constitutions of some of the Southern states. Such measures were opposed by moderate men who were trying to allay sectional feeling rather than aggravate it, as well as by bona fide free traders who might have been content with their political significance. Furthermore, measures of discriminatory taxation or of non-intercourse would have been unsuccessful unless taken in concert by a number of states. Charleston and Savannah, for example, were rivals for much the same territory; discriminatory taxation in one's state and not in the other's might have put the cities upon unequal terms. 115 State and local encouragement of desired industries by loans, bounties, and tax exemptions were not objectionable from the political standpoint, though their efficacy may be doubted. That they were not employed to a greater extent was partly due to the fact that the Southern people put the building of internal im- provements first in their programs for developing the South. Taxes had to be increased to meet the growing expenditures on their account, and the people of the South were not accustomed to heavy taxation. In the case of manufactures and mining, there was no considerable class directly and primarily interested in securing protective legislation. The influence of directly interested parties was further lessened because they were generally Northern men or foreigners. State legislatures were too frequently controlled 1U C. G. Memminger, Commissioner to Virginia, in an address to the Virginia Legislature, 1860. DeBow's Review, XXIX, 770. Also in Capers, Life and Times of Memminger, 247 ff. 1/2 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [172 by professional politicians, and their time monopolized by consid- eration of national issues and policies to the sacrifice of state interests. As far as principles and theories are concerned, it was not a very far cry from the advocacy of fostering commerce and indus- try by discriminatory taxation or by granting bounties and draw- backs to the advocacy of the extension of public credit or of capital in aid of steamship lines to Europe or other enterprises. It should not be forgotten that Southern commercial conventions, even those in which most was said about free trade, were con- stantly calling upon the state and Federal governments to grant financial aid to projects for promoting the objects of the conven- tions. And, in relation to laissez faire and free trade doctrines, what shall be said of state and municipal aid to railroads and other internal improvements? Every Southern state lent aid to internal improvements. 116 Virginia was almost bankrupt by her loans. After 1852 Tennessee extended aid to the extent of $8,000 per mile to every mile of railroad built within her limits. 117 Georgia, in addition to aiding the construction of other roads, built, owned, and operated a railroad from Atlanta to the Ten- nessee line, near Chattanooga. North Carolina followed a very liberal policy. 118 So also, did Louisiana and Mississippi. Texas offered liberal grants of public lands. By no means least in the extent of financial aid to internal improvements was that free trade state, South Carolina. No city in the South voted more money to further the construction of railroads than did Charleston. It is true, state aid to internal improvements met with opposition in the South; but the alignment upon the question by .no means coincided with the alignment upon the tariff, Federal aid to in- ternal improvements, or Federal subsidies and bounties, although there was a tendency in that direction. In Virginia the Demo- cratic party was in power when the immense debt was contracted 116 It is impossible to develop this subject here. For brief accounts, see Million, J. W., State Aid to Railroads in Missouri, ch. VI; De Bow's Review, XX, 386-389. UT The Commissioner of Railroads reported in October, 1857, that the state's obligations to railroads were about $16,000,000. Hunt's Merchants' Magazine, XXXVIII, 243. "The railroad debt of North Carolina in 1860 was 8.833,305. DeBow's Review, XXIX, 245. 173] ATTITUDE TOWARD PROTECTIVE LEGISLATION 173 for aiding railroads, turnpikes, and other internal improvements. In North Carolina the Democrats were in power when aid to rail- roads was voted upon the largest scale; in fact, after 1848 the Democratic party was recognized as being more favorable to the policy of state aid than the Whig. Texas, Mississippi, and Arkan- sas were overwhelmingly Democratic during the fifties; yet all had internal improvement programmes. Alabama, partly because of her peculiar geographical divisions, lent no aid to railroads, and not a great deal to any form of improvements; but there was a strong sentiment for state aid. In 1855 a nearly defunct Whig party almost won the state election by raising the issue. 119 Mobile lent heavily to the construction of the Mobile and Ohio railroad. Only one degree removed from the proposals to encourage in- dustry and commerce by legislation were the innumerable pleas ad- dressed to the people to patronize home industries and enterprises, to buy Southern-made in preference to Northern-made goods, to purchase from Southern jobbers and importers rather than from Northern, to hire Southern teachers and mechanics wherever pos- sible, to use school books published in the South, to patronize home literature, to cease sending their youth to Northern. colleges, and to visit Southern rather than Northern pleasure resorts. Every one of these pleas asked the individual, either directly or by im- plication, to sacrifice his own immediate profit or preference to the supposed public good. And all admitted the propriety of appeals for patronage of home industry. Every Southern commercial con- vention, when the members could not agree upon more effective plans for promoting its objects, fell back upon resolutions appeal- ing to the people to patronize home enterprises; for upon such resolutions all could agree. There were many, indeed, in the South who believed patronage of home industry to be the most efficacious means for achieving economic independence. An associate justice of the Supreme Court of Alabama said the efforts made to promote direct trade and manufactures had begun at the wrong end; the demands for the goods should be created first, and the steamship lines and fac- tories would follow. Let the people resolve to buy nothing made or grown in the North if they could buy a substitute made or grown elsewhere; let them resolve to buy nothing imported into ""DuBose, Life and Times of Yancey, 311. 174 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84<>l86l [l/4 a Northern port if they could buy a substitute imported into a Southern port. 120 A letter of a Charleston mercantile house ex- pressed the opinion that little could be effected by legislative enactments "as long as we are in the Union; a non-intercourse law will be a dead letter, and bounties of goods of direct importation will not result in any large increase in importations." What was necessary was a determination on the part of the people to patron- ize Southern merchants. 121 There was much impatience with the magnificent schemes which some men, particularly in the Southern Commercial Convention, were bringing forward for achieving the regeneration of the South, and the advice was given to pay more attention to little things. "Great steamships, and grand expan- sions, and magnificent speeches will do well enough, but there are little things, and a thousand of them, too, which might have a little attention, and perhaps lead to some small advantages. Could there not be some purpose, some real resolution to encourage not only by precept, but by example, a little home industry?" 122 William Gregg, protectionist though he was, put Southern pat- ronage of Southern imports and domestic industry foremost as a measure for promoting direct trade and manufactures. 123 He sug- gested the formation of societies and clubs for practising and preaching patronage of home industries. 124 He charged that the people preferred Northern-made articles because they were North- ern-made. 125 Women did not consider themselves in fashion un- less their clothing came from New York. There was "a rage for cheap Yankee goods." Merchants who handled Southern-made goods had to conceal their origin. The failure of so many South- ern cotton factories during the hard years following 1849, he at- tributed largely to the want of home patronage. 126 Gregg was not alone in his complaints. Fifty-eight Charleston importing and jobbing houses ran an advertisement in the papers in the form of an address to the merchants of the South and South- lM DeBotv's Review, XXIX, 104-107. Ibid., XXVIII, 589. Ibid., XXIV, 573 (taken from a Virginia paper). 12 *Gregg, "Southern Patronage to Southern Imports and Domestic Industry," in ibid., July, 1860, to Feb., 1861. iu lbid., XXX, 222. ia See especially ibid., XXIX, 629, 776. "'Ibid., XXX, 102. 175] ATTITUDE TOWARD PROTECTIVE LEGISLATION 1/5 west. They urged their claims for the patronage and custom of merchants of the interior, and begged them to "lay aside the prejudice (for it is only a prejudice) that your customers prefer goods from New York to those from Charleston . . ," 127 Norfolk merchants advertised goods as "just from the North." 128 The plaint was made that "The very men who most vehemently abuse the Yankees and their humbugs, are generally the first to contradict their own doctrines . . . ." The city council of Charleston sent to Troy, New York, for a fire alarm bell, although one could be pro- cured at home. Charleston mechanics were greatly aroused over the incident. 129 Individuals protested against the continual harp- ing upon Southern dependence; instead of advertising weaknesses they proposed to tell of possessions and possibilities. Occasionally journals of the Southern Rights persuasion declared their desire to publish only Southern advertising matter. The results were disappointing; their columns continued to be filled with Northern advertising. DeBow rather bitterly remarked that he was con- vinced the South had nothing to sell. 130 These constant appeals to individuals to patronize home indus- tries and home importing merchants were unobjectionable, but could not be otherwise than ineffectual except, possibly, during short periods of great excitement of the public mind. After the John Brown Raid at Harper's Ferry a determination was expressed on all sides to practise stern and uncompromising non-intercourse with the North as the best means of silencing the abolitionists and teaching the North the money value of the Union. The governors of several states recommended throwing Southern ports open to the world and levying high excise taxes upon North- ern made goods. The legislatures of Virginia and Tennessee adopted resolutions pledging the enactment of effective measures of retaliation. 131 Southern travel in the North fell off. Many Northern teachers and agents were driven from the South. Oc- casional business firms cancelled orders for Northern goods. Northern firms reported a falling off in their Southern business, '"Charleston Mercury, Dec. 17, 1859. I38 W. S. Forest, Sketches of Norfolk, 410. 129 Charleston Mercury, June I, 1858. DeBow's Review, XXII, 555, 556; XXVIII, 124, 493. XXIX, 559. 176 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [176 and the business interests of the Northern states became alarmed. 132 Citizens of Baltimore hastened to declare Baltimore ready to take the place of more northern cities as a commercial center for the South. 133 Southern men did not fail to note that the ill feeling between the sections operated as a form of protection to home industries. "Let non-intercourse be established, and how easy it will be for Georgia to supply half of the Southern States with plantation goods such as she now manufactures." 134 Mer- chants were advised to take advantage of the excited state of the public mind to establish direct trade. 135 The South produced no Horace Greeleys or Henry C. Careys; but a discussion of free trade versus protection in the South would be incomplete without mention of George Fitzhugh, of Virginia. A lawyer by profession, he took up his pen, about 1850, to defend the South and slavery. He proved himself a bold, ingenious, learned, and prolific, though quite eccentric and erratic, writer. The South conceded him a place alongside Dew, Harper, Ham- mond, and Stringfellow as a Southern apologist. With his defense of slavery and his attack upon free society, with its exploitation of labor by capital, we are not here directly concerned. Although not consistently, he was generally aligned with those who believed the South should diversify industry, build up cities and towns, con- struct internal improvements, and conduct her own commerce. He was particularly interested in improving Southern education, both secondary and primary, and in developing Southern literature and "Southern thought." Fitzhugh repudiated laissez jaire, and declared the world "too little governed." Fitzhugh believed in small nations. He repeated- ly depicted the evils of centralization, not only of government but also of commerce, industry, finances, and literature. He dedicated his Cannibals All to the Honorable Henry A. Wise, because "I am acquainted with no one . . . who has seen so clearly the evils of centralization from without, and worked so earnestly to cure or '"Charleston Mercury, Dec. 29, 1859, quoting the Boston Commercial Bul- letin; Wolfe, Helper's Impending Crisis Dissected, 128 ff., 164-6, quoting North- ern papers. lss Df Bow's Review, XXVIII, 331, quoting the Baltimore Prices Current. "'Wolfe, Helper's Impending Crisis Dissected, 129. DeBow's Review, XXX, 223. 177] ATTITUDE TOWARD PROTECTIVE LEGISLATION 177 avert those evils by building up centralization within." 136 And centralization without, he declared to be the "daughter of that Southern goddess, Free Trade." The free traders were "old fogies, sitting like an incubus on the South." 137 The disease under which the South suffered was free trade free trade with the North. The protection Fitzhugh demanded was against the North, not against Europe. He agreed with Southern free traders that a protective tariff imposed by the Federal government would be unconstitu- tional. He thought a revenue tariff afforded ample incidental protection against foreign nations; it was sufficient to enable the North to almost monopolize the Southern market. When the re- sults of the elections of 1858 threatened the enactment of a pro- tective tariff, he suggested that state protection could neutralize and "peaceably and lawfully nullify federal protection." Fitzhugh would not wait for the South to unite upon measures of protec- tion, but have each state take such individual action as it saw fit. 138 When non-intercourse was suggested, he espoused it. "Dis- union within the Union," as he termed it, would "lead at once to direct trade encourage, promote, and build up, Southern com- merce, manufactures, agriculture, education, etc.," and make the South independent at the same time it was bringing the aboli- tionists to terms. 139 He considered disunion to be a measure that would put an end to free trade with the North; but as late as the middle of 1859, at least, was inclined to prefer the "State protec- tive or taxing system" because it was "safer than disunion, equally efficient, and," so he said, "involves no breach of the constitu- tion." 140 It did not escape Fitzhugh's notice that the South had largely abandoned, if she had ever practised, a let-alone policy. "For twenty years past," he said, "the South has been busy in protect- 13 *Cannibals All, or Slaves Without Masters, Richmond, 1857. In addition to this work Fitzhugh wrote, Sociology for the South, or the Failure of Free Socie- ties; Slavery Justified (pamphlet, 1849); and numerous articles for DeBow's Re- view and other periodicals. ""DeBow's Review, XXVI, 659, 662. See Sociology for the South, especially chs. I, XIV. 188 Fitzhugh's views upon state protection are concisely set forth in an article, "State Rights and State Remedies," DeBow's Review, XXV, 697-703. ""Ibid., XXVIII, 7, article entitled ''Disunion Within the Union." lto lbid., XXVI, 661. 1/8 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [l/8 ing, encouraging, and diversifying Southern industrial pursuits, Southern skill, commerce, education, etc." Fitzhugh was not far from the truth when he said: "The South has not only adopted the protective policy, but, strange to say, the editors, legislators, and statesmen, who are loudest in professing free trade doctrines, are, invariably, the warmest advocates of exclusive and protective state legislation." And there was also a measure of truth in the statement: "Southern commercial conventions are composed of this class of men, who are actively at work in endeavoring to en- courage, direct, and control Southern pursuits, by legislation and all other feasible means, while they profess to be par excellence free trade men. . . . " 141 From this survey of their attitude toward protective tariffs and state and local measures to encourage industry and commerce, 1840-1860, we may conclude that just prior to secession the South- ern people were by no means thoroughly committed to laissez faire. With regard to duties upon foreign imports, while a respectable minority wanted absolute free trade, the great majority favored a tariff for revenue with incidental protection. The sentiment for protection would have been stronger had it not been for the con- viction that, while North and South were bound together in the Union, tariffs would redound almost wholly to the advantage of the former. In case the South should become independent, a con- siderable protectionist party might be expected to develop. De Bow's Review, XXV, 699-701. CHAPTER VII ECONOMIC ASPECTS OF THE DISUNION MOVEMENT, 1852-1860 After the defeat of the disunion movement of 1850-1851 the disunionists were comparatively quiet for a few years. The strug- gles over slavery were temporarily abated. All parties seemed to turn with more or less earnestness to efforts to see whether some- thing could not be done in an organized way to hasten the economic and social progress of the South a policy which Unionists had earlier supported as a substitute for disunion. It was during this short period that the Southern Commercial Convention was insti- tuted, and went about its work with a hope of accomplishing re- sults. Meanwhile, however, the Southern Rights wing strengthened its control of the reunited Democratic party. In doing this it was aided materially by the Pierce administration. In his distribution of the patronage Pierce tried to conciliate the Southern Rights faction, and failed to recognize the more conservative element. He submitted himself largely to the guidance of the radical South- ern leaders in the formulation of policies. Meanwhile, too, the Whig party began to dissolve. In 1854 the lull in the quarrel over slavery was rudely inter- rupted by the repeal of the Missouri Compromise the motives of which we shall not pause to discuss. The repeal served as the occasion for the organization of a sectional party in the North, which in turn reacted to strengthen the hands of the extremists in the South. The Kansas troubles and the presidential campaign of 1856, with its threat of the election of the candidate of a sectional party, called forth again threats of disunion, and once more the subject was canvassed in all its aspects. From this time on little reserve was shown in expressing disunion sentiments. The session of the Southern Commercial Convention held in Savannah a month after the election showed unmistakably the growth of disunion sentiment, and proved to be the last controlled by the conservative element; its successors were little more than gatherings of disunionists. A large proportion of the representa- tive newspapers of the South, especially of the cotton states, openly and almost constantly advocated disunion. The Richmond En- quirer, in the summer of 1857, complained that the Charleston 179 I8O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [l8o Mercury "does nothing from year's end to year's end but to an- nounce the speedy dissolution of the Union." 1 Among others scarcely less open in their advocacy of disunion were, not to men- tion South Carolina journals, the Richmond Examiner, Roger A. Pryor's Richmond South, the Columbus (Georgia) Corner Stone, the Mobile Register, the Mobile Mercury, the Montgomery Ad- vertiser and Gazette, the New Orleans Crescent, the New Orleans Delta, the Vicksburg True Southron, and the Memphis Appeal. J. D. B. DeBow had by this time become an avowed disunionist, and DeBow's Review was disunionist in the whole tendency of its teaching. The Review had some quite able writers among its con- tributors, had won for itself a considerable circulation and much prestige, and exercised great influence in the South. The avowed secessionists in Congress had come to be a considerable group, which included Miles, Keitt, and Bonham, of South Carolina, Iverson, of Georgia, Roger A. Pryor, of Virginia, John A. Quit- man, J. D. McRae, Reuben Davis, and Barksdale, of Mississippi, C. C. Clay and J. L. Pugh, of Alabama, and Wigfall, of Texas. Many who did not publicly avow themselves secessionists were known to lean strongly in that direction. Outside of Congress were dozens of men of reputation and influence, most conspicuous of whom was William Lowndes Yancey, of Alabama, who devoted their best energies to advancing the cause of disunion. Through public agitation and discussion and the later meetings of the Southern Commercial Convention, 2 through private conferences and the wide correspondence carried on by various individuals some unsuccessful attempts were made at organization 3 the dis- unionist leaders in the several states became acquainted with each other, came to have a good understanding of the state of public *August 13. ^Edmund Ruffin's Diary gives a good understanding of the way in which the Southern Commercial Convention, aside from the formal meetings, was used to promote the cause. See entries covering the session at Montgomery, which Ruffin attended. 'League of United Southerners. Hodgson, Cradle of the Confederacy, 393- 396; DuBose, Life and Times of Yancey, 377; Charleston Mercury, Aug. 3, 1858; Montgomery Daily Confederation, May 21, 1859, quoting an editorial in the Mobile Mercury; DeBow's Review, XXV, 250. l8l] THE DISUNION MOVEMENT, 1852-1860 l8l sentiment in all quarters of the South, and strove to approach an agreement in regard to the proper policies to be pursued. 4 Disunionists frankly expressed their hope that a pretext could be found which would precipitate the cotton states into a revolu- tion. 5 Their desire to make an issue in part explains the agitation for repealing the laws against the foreign slave trade. When the Southern members in Congress compromised the Kansas question, in April, 1858, by accepting the English bill, several prominent disunionists expressed their disappointment that an issue had not been made. 6 Finally, the issue was presented when, largely through the agency of the disunionists, the Democratic party was split in twain at Charleston and Baltimore, and the triumph of a sectional party made inevitable. The discussion of disunion during the several years preceding the actual launching of the experiment left no phase of the subject untouched. Every possible angle of the question was explored- the ability of the Southern states to support a separate govern- ment; the probability of their being permitted to secede without war; the attitude the border states would take in case the cotton states should secede; the most desirable boundary line; the di- vision of the territories; the policies the new confederacy should pursue with respect to commerce with the North and Europe, the tariff, the navigation of the Mississippi, the Pacific railroad, immi- gration, the slave trade, expansion of the confederacy to the south- ward, and the military establishment; the effect of dissolution *In a letter to Roger A. Pryor, Yancey said he did not expect Virginia to take the initiative. "Her position as a border state, and a well considered South- ern policy (a policy which has been digested and understood and approved by some of the ablest men in Virginia, as you yourself must be aware) would seem to demand that, when such movement takes place by any considerable number of Southern states, Virginia .... should remain in the Union." Hodgson, op. cit., 397; National Intelligencer, Sept. 4, 1858. "W. L. Yancey to James S. Slaughter, June 15, 1858, in Hodgson, op. cit., 393; DuBose, Yancey, 376. "Yancey to Thos. J. Orme, May 22, 1858, in Montgomery Daily Confedera- tion, June S, 1858; DuBose, Yancey, 366-75; M. L. Bonham, of South Carolina, in the House of Representatives, June 9, Cong. Globe, 35 Cong., I Sess., Appx. 509-11. A correspondent of the Charleston Mercury wrote of the Southern Com- mercial Convention at Montgomery: "I have not met a single man except the Virginians who approves the late compromise in Kansas." May 15, 1858. l82 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [l82 upon the prosperity and development of the South as a whole and of particular classes, interests, and localities. The various arguments in favor of disunion did not appeal with equal force to all disunionists. Many emphasized the greater se- curity of slavery in a separate republic and the freedom from the quarrels over slavery, which seemed interminable in the Union; and there can be no doubt that, could the slavery quarrel have been hushed, and the issue amicably settled, disunion sentiment would never have reached alarming proportions or have been translated into action. Others were prone to contemplate the glories of a great republic stretching from the Ohio to Panama and encircling the Gulf of Mexico. Others were influenced by the possibility of reopening the foreign slave trade. Too many poli- ticians, it must be said, felt that their political careers had been blighted in the Union, and hoped for better fortune in the nar- rower confines of a Southern confederacy. But almost all dis- unionists believed, or professed to believe, that the South in the Union was being exploited economically for the benefit of the North; that the Southern states had somehow become tributary provinces of the Northern; that Northern wealth largely repre- sented the product of Southern labor; and that, could the Southern states but cut loose from their Northern connections and be per- mitted to work out their own destiny in their own way, their prosperity would be greater and their development quickened. The arguments advanced in support of these propositions were similar to those used in 1850 and 1851, but had been modified to- some extent by circumstances. Since that time there had been much discussion of diversification of industry and development of varied resources; commercial conventions had been held and public opinion educated; and various plans for regenerating the South had been tried or proposed, and, in general, had failed. Whereas in the earlier period most of those who hoped for a diversification of Southern pursuits had held aloof from or had opposed the disunion movement, in the latter many of that class, despairing of success in the Union, lent it their support. The doctrine that the South paid more than her share of the taxes and received less than her share of the disbursements had been so frequently repeated that it was becoming generally ac- cepted. One estimated at $50,000,000 the sum the South paid 183] THE DISUNION MOVEMENT, 1852-1860 183 annually, and at $10,000,000 the amount returned in the form of expenditures; $40,000,000 annually would be saved by going out of the Union. Such a sum distributed among the states would give an enormous impetus to manufactures and all other branches of industry which suffered from a deficiency of capital in the South. 7 Southern men did not cease to attribute Southern decline to un- equal taxation and disbursements. 8 Direct trade with Europe would follow, it was said, closely upon the heels of separation; for importers would never pay the duties imposed by the North in addition to the moderate duties imposed by the Southern confederacy. "With a horizontal duty upon all imposts it would be impossible for foreign products to come to us by way of the cities of the North." 9 If necessary, navigation laws could be enacted discriminating against Northern shipping. For- eign ships would flock to Southern ports; Northern ships would be transferred to the South. Northern seaports would decline; Southern would flourish. 10 The South, having control of its own commerce, would control the "exchanges" also, and thus become financially independent. The establishment of direct trade would give an impulse to every other pursuit: "Manufactories would then grow up, commerce would extend, mechanical arts would flourish, and, in short, every industrial and every professional pursuit would receive a vivifying impulse." 11 Of all those who speculated in regard to the proper policy of a new confederacy, it is worthy of note that very few proposed that the government should be supported without resort to duties on ''DeBow's Review, XXI, 543. Similar statements are in the Charleston Mercury, Feb. 25, 1858, quoting the Mobile Mercury; DeBow's Review, XXX, 252; ibid., XXI, 532; speech of J. A. Jones, of Georgia, in Vicksburg, New York Herald, May 21, 1859. s john Forsyth's lecture on "The North and the South," Mobile, 1854, DeBow's Review, XVII, 368-73; ibid., XIX, 383-4; ibid., XXVI, 476 (A. P. Cal- houn, 1859); ibid., XXX, 436 (DeBow, 1858); W. P. Miles, of South Carolina, in House of Representatives, Mar. 31, 1858, Charleston Mercury, Apr. 17; Southern Literary Messenger, XXXI, 238; "Barbarossa" [John Scott], The Lost Principle, or the Sectional Equilibrium, Pt. I, ch. V; Claiborne, Life and Corre- spondence of John A. Quit-man, II, 186-7. 'DeBow's Review, XXI, 543. "Ibid., XXI, 519; XXV, 373; XXIII, 604; Cong. Globe, 33 Cong, i Sess., 375 (Preston S. Brooks). "DeBow's Review, XXIX, 462. 184 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [184 imports. It is true many spoke of a free trade republic; but "free trade" was generally equivalent to "tariff for revenue only." Almost all would have had low duties; but while some told how low they would be and emphasized the blessings of free trade, others dwelt upon the incidental protection which would be af- forded by a tariff for revenue. Said Willoughby Newton, a Vir- ginia disunionist of long standing, "A tariff for the support of the new government would give such protection to manufacturers that all our waterfalls would bristle with machinery." 12 Men from border states were more inclined to speak of the advantages of protection against Northern competition than were men from the cotton states, though the latter often held out as an inducement to Virginia and North Carolina to go with the Gulf states the probability that they would supplant New England in manufac- turing for the South. There were free traders, however, who thought it might be well to leave the Northern slave states out of the confederacy lest they should demand protection for their in- dustries. Disunionists believed that, in case of separation, the North would have to resort to direct taxation to support her gov- ernment; for she would no longer be able to import on Southern account, and she could not tax imports from the South, since they were chiefly raw materials. 13 The consequences of direct taxation would be the transfer to the South of much capital in- vested in manufactures. The disunionists often took a somewhat skeptical attitude to- ward the efforts which were being made to promote Southern commerce and industry while the Union continued. Each failure confirmed their opinion that such efforts were futile. The Charles- ton Mercury said that in the Union "Direct trade with the cus- tomers of the South in Europe is an impossibility. .. .Norfolk, Charleston, Savannah, Mobile, are only suburbs of New York." 14 According to a contributor to DeBow's Review, the process of de- velopment went on much more slowly than in the North, and must as long as the South remained in the Union with the North to lean upon. Disunion would call for and foster a variety of home products. Pride would demand protection for home indus- Review, XXV, 373 (Sept., 1858). "Ibid., XXI, 541-44. "May 20, 1858. 185] THE DISUNION MOVEMENT, 1852-1860 185 tries. Diversification would develop and unfold the wealth of the South. "True, we might, in the course of time, unfold this wealth in the Union, but not till the teeming North has 'embellished all her slopes,' and of her superabundance and for lack of other lands to conquer, empties her surplus on us, ... With all these aids and stimulants we must advance with equal or faster steps than they." 15 A. J. Roane, of Virginia, wrote: "Experience has demon- strated that direct trade to Southern ports cannot be established to any considerable extent in the Union. It can only be accom- plished by the stress of the necessity which separation would cre- ate." 16 In Virginia the opinion was held that in case of disunion the very necessity of her condition of estrangement from the manufacturing North would impel her to add a manufacturing phase to her already innumerable sources of wealth. 17 As we have seen, certain south Atlantic ports, particularly of Virginia, which was slowly building the Chesapeake and Ohio railroad, aspired to export and import for the Ohio and the upper Mississippi valleys, and had high expectations of the beneficial effects of such a commerce upon the prosperity of the seaboard regions. A considerable part of the exports and some of the imports of the Northwest still followed the Mississippi river with New Orleans as their port of entry and departure. The people of New Orleans, furthermore, hoped to retain or increase her share of the Western commerce by the building of north and south railroads. There continued to be considerable exchange of products between the South and the West. It was to be presumed that the people who profited or expected to profit by this Western trade would be loath to have a measure taken which might injure that trade and destroy the prospects of future benefits from it. Disunionists sought to overcome the objections of those who yet expected much of Western trade in the way of promoting South- ern prosperity. To meet the demands of New Orleans and pre- serve peace with the West, they generally agreed that, in case of separation, it would be necessary to guarantee free navigation of the Mississippi; it was frequently suggested that Western products be admitted free of duty. 18 Some Southerners professed "DeBow's Review, XXIII, 471-474 (Nov., 1857). Cf. ibid., XXI, 177-186. "Ibid., XXIX, 463. "New York Herald, October 23, 1860. ^DeBow's Review, XXX, 93 (Maj. W. H. Chase, of Florida). l86 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [l86 to believe that, in case of a dissolution of the Union, the close commercial relations of the two sections and the absolute neces- sity to the West of the Mississippi river as an outlet for her com- merce would induce the West to cast her lot with the South rather than with the East; 19 they were not averse to admitting free states into their slaveholding republic. It is rather strange how tenaciously Southern men on the eve of secession clung to the belief that the old alliance of the South and West, based upon commercial relations and common opposi- tion to the tariff and financial policies of the East, still continued. For example, Governor Wickliffe, of Louisiana, in his message of January, 1859, said: "The position of the Northwestern States of the Mississippi Valley, on this question [slavery] is of especial interest to us. These States are, by geographical position, com- mercially our allies, whether slave or free, while many of the States on the Atlantic side of the Alleghanies are necessarily hostile in commercial interest. ... It is cheering to find our com- mercial allies of the Northwest sustaining our Southern policy." 20 This statement is accurate in no particular. The value of the trade between the West and East was several times greater than the value of the trade between the West and South. Not only did most of the foreign imports of the West come by way of the East; but by far the larger part of Western exports went that way. The travel between East and West was much greater than between South and West. Much Eastern capital was invested in the West. In politics, too, the West and East had been drawing closer together. The tariff no longer divided them as it did in the days of Calhoun. Both stood for a liberal policy in regard to improve- ment of rivers and harbors. The South had abandoned her old liberal attitude on the public lands question, and steadily opposed homestead bills and land grants to railroads; while in some quarters the old demand for distribution of the proceeds from the sale of public lands was revived. The East, on the other hand, was inclined to support the public lands policies of the West. On the immigration question, the West agreed with the East rather "Senator Hammond, of South Carolina, Mar. 4, 1858, Cong. Globe, 35 Cong., I Sess., 961; "Barbarossa," The Lost Principle, 225; DeBow's Review, XXIII, 603, (Edmund Ruffin). 30 New Orleans Daily True Delta, Jan. 19, 1859. 187] THE DISUNION MOVEMENT, 1852-1860 l8/ than with the South; the same was true of the Pacific railroad question. On the paramount issue of slavery, the people of the free states of the Northwest were rapidly losing their old indiffer- ent attitude, and becoming more hostile to the institution. Along with their pictures of the prosperity and progress which would follow the formation of an independent Southern confeder- acy, disunionists frequently advanced arguments to prove that it would be accompanied by no countervaling disadvantages. Seces- sion would be peaceful, they said, because the interruption of Southern trade, in case the North should undertake coercion, would bring such prostration to Northern industry and commerce that she would not have the means to go to war. Furthermore, England and France would not permit a blockade, because a cutting off of the supply of cotton would bring ruin to important industries. 21 Thus the disunionists had an argument at every turn. About the time of Lincoln's election there was published a volume by Edmund Ruffin entitled, Anticipations of the Future to Serve as Lessons for the Present Time, in the Form of Extracts of Letters from an English Resident in the United States, to the London Times, from 1864 to 1870, etc. 22 Ruffin was a man of con- siderable ability. He was known throughout the South, and his name carried great weight because of his long record of valuable services to Virginia and the South at large, chief of which were his contributions to improved methods of agriculture. He was a secessionist of long standing, and one of the leaders of the move- ment. 23 His book gives such a complete statement of the disunion arguments, colored perhaps by his Virginia viewpoint, that a summary of it is desirable. Ruffin allowed Lincoln to serve one term and his more radical successor, Seward, to serve part of one without a dissolution of the Union. When, however, Seward proposed to stand for a "DeBow's Review, XXIII, 596-601; XXIX, 457-463; XXX, 95 if. 22 The earliest notice I have seen of the book was in the National Intelligencer, Nov. 15, 1860, which said the work belonged to the "disunion literature of the current day." It was published anonymously, but the authorship was evident from the appendage of a series of essays on "The Causes of the Independence of the South" which had appeared in 1856 and of which Ruffin was known to be the author. Essays were in Richmond Enquirer, Dec. and Jan., 1856-1857; De- Bow's Review, XXII, 583-93; XXIII, 266-72, 546-52, 596-607. 23 For a brief biographical sketch, see ibid., XI, 431-436. l88 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [l88 second term, six cotton states seceded. Whereupon, after some attempts at settlement, the Federal government established a blockade of Southern ports, and war ensued, the northern slave states remaining neutral. By May, 1868, because of the loss of Southern trade and cotton, there were great suffering, threatening mobs, and sanguinary riots in the North. Northern merchants and manufacturers felt very severely the loss of $40,000,000 due them from the South and sequestered by the government of the new confederacy. The South suffered also from the blockade; but there were compensations in that it taught the Southern people to be independent of the North. Soon Virginia, North Carolina, and Maryland found it no longer possible to remain neutral, and entered the war on the side of the South. Another $50,000,000 of debts were sequestered. The North did not attempt to carry the war into the border states. In July, 1868, it was reported that the imports and revenues of the North had fallen off tremen- dously; for the "greater part of the former importations to North- ern ports and in Northern ships, was for transhipment to and con- sumption in the Southern states." 24 In August outbreaks and violence were reported in the impoverished Northern cities; New York was sacked and burned a rather bitter commentary on the supposed friendship of the South and New York City. Soon the North was unable to continue the war; and a truce was made. By February, 1869, renewal of commercial intercourse and peaceful relations had given a wonderful impulse to trade and business in the South. But Southern merchants had entirely ceased going to the North to purchase goods of any kind: "For all Northern fabrics being now subject to high duties, would thereby be so much enhanced in price, that but few kinds can be sold in Southern markets, in competition with European articles subject to the same rates of duties only or of Southern manufactures, now protected by the same tariff law which had formerly been enacted by the superior political power of the North, and to operate exclusively for the profit of Northern capital and industry." 25 Northern ship owners were transferring their ships to the South; Northern manufacturers were coming; and much Northern capital was seeking investment there. A month later it was reported that the "commercial prosperity of the South is growing with a force "P. 283. "P. 318. 189] THE DISUNION MOVEMENT, 1852-1860 189 and rapidity exceeding any previous anticipations of the most sanguine early advocates for the independence of the Southern states." 26 The Western states had taken but little part in the war. The South had granted them free trade and free navigation of the Mississippi. Because of this indulgent and conciliatory treatment the people of the Northwest had not tried to open direct trade with Europe, but were content to trade principally with New Orleans. On April 7, 1869, it was reported that New England and the West were at loggerheads over the tariff. 27 The volume closes with a prediction that the North would soon split, the Western states, upon their own offer, going with the South. "And should New Eng- land be left alone, thenceforward its influence for evil on the Southern states will be of as little effect, and its political and economical position scarcely superior, to those conditions of the present republic of Hayti." 28 By April 14, 1869, it was reported, commercial treaties had been made by the South with European powers. No duties were to be over 20 per cent. The treaties might be terminated after ten years. The tobacco growers, who had so often in the old Union requested the government to attempt to secure a relaxation of the heavy duties imposed upon their product by France and England, now had their wishes gratified.' 29 Ruffin's book was written during a political campaign when it was well understood that, in case of Lincoln's election, the cotton states would in all probability secede; but its content was only an amplification of a series of letters published in the Richmond Enquirer in December, 1856, and January, 1857. And the argu- ments for secession which he used were typical of the secessionist -per se propaganda to which the people of the South had been ac- customed for at least a decade. Southern people were strengthened in their expectations of beneficial economic effects to follow secession by a class of poli- ticians, writers, and newspaper editors representing those Northern commercial and mercantile interests whose business was largely with the South, and those Northern manufacturing inter- 2C P. 323. "P. 328. *P. 338. "P. 329. Cf. "Barbarossa," The Lost Principle, 176 ff. I9O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 ests who either sold their products in the South or purchased their raw material there, or both. The best known and most trust- worthy individual of this class was Thomas Prentice Kettell, mentioned before in connection with the secession movement of 1850. He was, in 1860, the editor of Hunt's Merchants' Magazine. His views carried considerable weight, especially in the South, where his free trade principles, his sympathetic attitude on the slavery question, and his interest in Southern economic develop- ment had long been known. Early in the presidential campaign of 1860 there was published a book by him entitled, Southern Wealth and Northern Profits, As Exhibited in Statistical Facts and Official Figures; Showing the Necessity of Union to the Future Prosperity and Welfare of the Republic. The book showed an excellent understanding of the commercial and financial relations of the North and South; the conclusions were supported by tables of statistics, largely drawn from official sources. The burden of the book was, as the title indicates, that the South produced wealth, but that this wealth accumulated in the North: Capital, said Kettell, accumulates slowly in all agricultural countries and rapidly in commercial and manufacturing countries. 30 He de- scribed the resources of the South, her enormous production of cotton and numerous other products, and her immense exports to the North as well as to Europe. He further showed the extent of Southern purchases in the North, the value of the commerce carried for the South by the North, the Northern tonnage so employed in short he discussed every form of profit derived by the North from her relations with the South. The total profits the North derived annually from Southern wealth he summarized in the following table: 31 "P. 126. S1 P. 127. There is no way to check these items with any accuracy, were it worth while to do so. The fishing bounties were paid from the general revenues, and, therefore, by both North and South in proportions of their respective con- tributions. The second is undoubtedly greatly exaggerated. The average yearly re- ceipts from customs, 1856-1860 inclusive, was $54,487,600. Assuming that the people of the South paid as much per capita as the people of the North, which they probably did not (See ante p. 103.), the South paid about $21,440,000 an- nually. A part of this at least was disbursed in the South. The sixth item is probably much too large. So, also, is the last. Northern investments in the South and loans and extensions of credit greatly exceeded in amount Southern invest- I9l] THE DISUNION MOVEMENT, 1852-1860 19! Bounties to fisheries, per annum $ 1,500,000 Customs, per annum, disbursed at the North. . . . 40,000,000 Profits to Manufacturers 30,000,000 Profits to Importers 16,000,000 Profits to Shipping, imports and exports 40,000,000 Profits on Travelers 60,000,000 Profits of Teachers, and others, at the South, sent North 5,000,000 Profits of Agents, brokers, commissions, etc 10,000,000 Profits of Capital drawn from the South 30,000,000 Total from these sources $232,500,000 In sixty years, according to Kettell's estimate, $2,770,000,000 had been transferred from the South to the North in these ways. Such heavy drains had prevented the accumulation of capital in the South. 32 Kettell's arguments were addressed to the Northern people; he urged them not to endanger their prosperity by the unnecessary agitation of the slavery question. The South and West were por- trayed as having great natural resources, whereas the East had few; the prosperity of the latter depended upon manufacturing and shipping for others. 33 He described the efforts which had been made in the South to make the section independent of the North, and the progress already made toward that goal; these he at- tributed to the anti-slavery agitation. He considered the possibil- ity of a dissolution of the Union. In that case, "it is quite apparent that the North, as distinguished from the South and West, would be alone permanently injured." As for the South, "in the long run it would lose after recovering from first disasters nothing by separation." 34 Disunionists saw in Kettell's book an argument for secession. John Townsend, of South Carolina, cut Kettell's estimate of Northern profits from Southern industry to less than half $105,000,000 annually or $2,100,000,000 in twenty years. What would not this sum have accomplished for the South in twenty years? he asked. Direct trade and flourishing cities. "Domestic ments in the North and deposits of Southern funds in Northern banks. The item should read, "interest on Southern debts to Northern citizens;" at any rate such an item, and it would not be a small one, should be included in the table. "P. 127. "P. 75- "P. 75- 192 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [192 manufactures would have occupied every water power, and the whole South, wealthy and equipped, and armed at every point, would have been able to defend herself against the world." 35 DeBow, another disunionist, in his review of Southern Wealth and Northern Profits, said: "The author deserves, by his labors, not only on this occasion, but during a long and active career, the most substantial recognition, as one of the noblest and truest patriots, the most profound economists, and ablest statistical philosophers of the age." 36 Of Northern newspapers which encouraged the Southern people to believe that disunion would be followed by unprecedented prosperity, none was more widely read and quoted or wielded greater influence in the South than the New York Herald. It kept close watch of events and the state of public opinion in the South, and should have known, perhaps did know, the temper of the people. It constantly advocated a policy of meeting Southern demands and avoidance of wounding Southern sensibilities in order that the South might not be compelled to resort to measures which would work injury to the navigating, mercantile, and financial interests of New York, which the Herald represented. In case of disunion, according to the Herald, the imports of the Northern confederation would so fall off that it would have to resort to direct taxation, while the South would have ample revenue. Manufactures would be established in the South with Northern capital. Northern shipping would rot at its docks. Part of the Northern population would migrate to the South, so the disproportion in numbers would cease to exist. The value of real estate in the North would be greatly reduced. 37 The views which disunionists, and others both South and North, held in regard to the economic benefits to follow the formation of a Southern confederacy did not go uncontroverted in the South. Conservative journals, such as the New Orleans Picayune, perhaps the best newspaper in the South, the Montgomery Daily Confed- eration, the Republican Banner and Nashville Whig, and the Savannah Daily Republican, did not consider that the Union *The South Alone Should Govern the South. And African Slavery Should Be Controlled by Those Only Who Are Friendly to It (pamphlet), 3rd edition, P- Si- ^DeBoiv's Review, XXIX, 213. "October 30, 1860, editorial, for example. 193] THE DISUNION MOVEMENT, 1852-1860 193 injuriously affected the economic interests of the Southern states. Said the Picayune, 1858: "One of the most erroneous ideas, strangely obtaining considerable currency at the South, is that which attributes apparent decay of the older, and comparative slow growth of the younger Southern States, to a fixed policy of the General Government, assumed to be partial to sections in which slavery does not exist." 38 The Montgomery Daily Confederation said, 1859: "Nor are we wanting in a proper appreciation of the value of the Union. . . . We sing no anthems to its glories, at the same time we cannot forget that under it, we have grown to be a great, prosperous, and after all, a happy people." 39 Occasionally DeBow's Review contained an article which refuted the views presented by the majority of its contributors. 40 Conservative statesmen often described the South as prosperous, and attributed that prosperity to the Union. Such a one was Alexander H. Stephens. 41 Senator Bell, of Tennessee, in his speech on the Lecompton bill, 1858, described the disunionists perseoi the South, and expressed his dissent from their doctrines. 42 Disunionists were forced to admit on the eve of the war that the South was enjoying a comparative degree of prosperity; and they expressed concern lest a feeling of content with their eco- nomic condition would make the Southern people incapable of maintaining their rights. 43 The Charleston Mercury found it necessary to protest against an editorial of the New Orleans Bee, "an inveterate old Whig paper," for intimating "that the Southern people are so cankered by prosperity as to be incapable of resist- ing the sectional domination of the North, and that the Union will ss May 22, 1858. "May 19, 1859. A year earlier it had said: ''We scout the position so often assumed that we are inferior that we are degraded in this Union . . . That the North does our trading and manufacturing mostly is true, and we are willing that they should. If we thought as some seem to think on the subject, we should boldly raise the standard of secession, and never cease the strife until the Union were dissolved." May 19, 1858. "XXIV, 431-39, e.g. "Letter to J. J. Crittenden, Jan. 2, 1860; address to his constituents, Aug. 14, 1857, Toombs, Stephens, Cobb Correspondence, 415 ff. "Ccng. Globe, 35 Cong., I Sess., Appx., 139-40. "Speech of R. B. Rhett, July 4, 1859, in Charleston Mercury, July 7; ad- dress of Col. A. P. Aldrich at the fair of the South Carolina Institute, Nov. 17, 1859, ibid., Nov. 19. 194 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [194 be continued because of this prosperity." 44 Disunionists found it necessary, also, to allay the fears of those engaged in industry and commerce who, while desirous of Southern industrial and com- mercial independence, believed that the sudden disruption of established relationships which disunion might cause would pros- trate their business. 45 Much of the disunion argument seems to have been designed to win over this class of men. Some of the leaders in the various efforts made to effect an industrial and commercial revolution in the South were not con- vinced by the arguments of the unconditional disunionists. James Robb, to whom more than to any other individual belongs the credit for the successful building of the New Orleans, Jackson, and Great Northern railroad, undertook to expose the fallacies of the secession arguments. It would be suicide for the South to abandon the Union. The pursuits of the people of the South were incompatible with any considerable progress in manufacturing and commerce. The remedy for dependence upon the North was not secession but a change of habits. The South had better be dependent ypon the North than upon Europe. "The Southern mind is deluded in the belief that England and France will give to a separate Southern Confederacy, founded on Slavery, Free Trade, and Cotton, their entire sympathies." If self-interest did not appeal to New England, would it appeal to England and France? The belief that the withdrawal of Southern trade would ruin the East was too absurd to merit notice. "Where," he asked, "is the evidence of the prosperity of the Southern States being seriously endangered by a continued fellowship with New Eng- land? Our material progress for the last fifteen years is without example, . . . " 46 William Gregg, one of the ablest and sanest thinkers in the South upon questions affecting the economic interests of the sec- tion, was not a secessionist per se.* 7 The South was not ready "April 30, 1859. "See, for example, A. J. Roane in DeBow's Review, XXIX, 462. "Letter to Alexander H. Stephens, Nov. 25, 1860, in a pamphlet, A South- ern Confederacy. Letters by fames Robb, late a citizen of New Orleans, to an American in Paris and Hon. Alexander H. Stephens, of Georgia, pp. 11-24. "The statements relative to Gregg's position are based upon a series of essays on "Southern Patronage to Southern Imports and Domestic Industry" which appeared in DeBow's Review, July, 1860. to February, 1861, but all of 195] THE DISUNION MOVEMENT, 1852-1860 195 for independence, he said. The Southern people should make themselves commercially and industrially independent of the North before going out of the Union. There would be no ad- vantage in turning from the Yankees and relying upon Europe. 48 Free trade among the states he considered the greatest bond of Union; and at the time he wrote, 1860, still thought it, "if proper- ly poised and equalized throughout our common country, will dispel the dark cloud which hangs over truth and justice . . ," 49 Yet Gregg was not oblivious to some of the possible advantages of disunion. If a line were drawn which would be a barrier to the importation of Northern locomotives, for example, two years would not elapse before the South would manufacture them her- self. Disunion would stop the practice followed by Southern banks and money lenders of employing their money in New York rather than at home, which was- a "monstrous barrier to Southern enterprise." 50 Yet, after giving due weight to such Union arguments as we have just analyzed, it remains that the disunionist arguments in regard to the material benefits of their project were not adequately refuted in the South. Unionists more frequently took the course of appealing to the common history of the American people, their common republican institutions, the greatness of the Union, its prestige among the nations of the earth, its vast military strength, the weakness and insignificance the South would have as an independent nation, her inability to protect an institution con- demned by the opinion of the world, and the danger of plunging the country into fratricidal war. They also found it effective to cast aspersions upon the motives of the secessionist leaders, to represent them as restless spirits, broken down politicians, dis- appointed in their political ambitions. Northern men contributed but little to a true understanding of the causes of the disparity of the sections in prosperity and progress, and of the effect which a division of the Union might have upon the great material interests of the country; such an which were written before Lincoln's election. But see Victor S. Clark in The South in the Building of the Nation, V, 323. "DeBow's Review, XXIX, 78, 79, 773. 778. "Ibid., XXX, 217. "Ibid., XXIX, 79, 495. 196 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84<>l86l [196 understanding, it is believed, would have tended to allay disunion sentiment. Northern men were not as well informed as they should have been of the number of disunionists per se in the South, nor of the arguments they advanced. Practically all of the discussions dealing with disunion were colored by partisan bias. As we have seen, representatives of those business interests of the East which were closely allied with the cotton power exaggerated the value of the Southern connection and the injurious effects of disunion upon the North. They sought to fix the guilt for en- dangering the Union upon the Northern "fanatics" who were agitating the slavery question. Republican and anti-slavery writers and oraters, who, it must be remembered, were not trying to win converts in the South but to build up a great party in the North, dealt with disunionism in a variety of ways. They de- nounced as mercenary those who would calculate the value of the Union in dollars. They commonly charged that threats of dis- union were mere gasconade for the purpose of frightening North- ern men into voting for Southern measures. They often, also, as did William H. Seward in his great speeches during the campaign of 1860, protrayed the magnitude of Northern productions and Northern internal commerce as compared with the products ex- changed between the sections, and minimized the value of the Southern trade and Southern raw materials to the North and the injury which would be inflicted upon Northern interests by dis- union. 51 Senator Wilson, of Massachusetts, said cotton was not king; cotton made but one-seventeenth part of the manufactures of the North. 52 The Republicans, and anti-slavery men generally, attributed the "decline" of the South and its dependence upon the North chiefly to the blighting effects of slavery; they saw no hope of remedy so long as slavery continued to exist. 53 "In a speech at Palace Garden, New York City, Nov. 2, 1860, he said: "New York is not a province of Virginia or Carolina, any more than it is a province of New York or Connecticut. New York must be the metropolis of the Continent." New York Herald, Nov. 3. "Cong. Globe, 35 Cong., i Sess., Appx., 169, speech of Mar. 20, 1858, in reply to J. H. Hammond's "Mud-sill" speech of Mar. 4. "The speech of Senator Wilson just quoted is a good example. Another is Hannibal Hamlin's reply to Hammond, Mar. 8, II, 1858, Cong. Globe, 35 Cong., i Sess., 1002-1006, 1025-1029. 197] THE DISUNION MOVEMENT, 1852-1860 197 Perhaps the ablest and most philosophical exposition of moder- ate Republicanism made between 1854 an< i J 86i is George M. Weston's Progress of Slavery, a work which it would have been well worth the while of Southern thinkers to study. We are here concerned only with those of the propositions he sought to es- tablish which relate to disunion. He told of nullification in South Carolina and of its partisans and sympathizers in other slave states. "The real cause of this Southern predisposition to listen to the appeals of the Palmetto nullifiers, was Southern discontent at the prosperity of the North. . . . Refusing to see the true cause of their own misfortunes, and eager to attribute them to every cause but the right one, they insisted that they alone were the real producers of wealth, and that the North was thriving at their expense." This doctrine of the nullifiers had been steadily insisted upon during the following quarter of a century. "It has, without doubt, become the settled conviction of large numbers of persons in the slave States, that in some way or other, either through the fiscal regulations of the Government, or through the legerdemain of trade, the North has been built up at the expense of the South." 55 These were the views which prompted disunion. He illustrated the reasons for wanting to dissolve the Union by an extract from a public address of John Forsyth, of Mobile: I have no more doubt that the effect of separation would be to transfer the energies of industry, population, commerce, and wealth, from the North to the South, than I have that it is to the Union with us, the wealth-producing States, that the North owes its great progress in material prosperity. . . . The Union broken, we should have what has been so long the dream of the South direct trade and commercial independence. Then, our Southern cities, that have so long languished in the shade, while the grand emporia of the North have fattened upon favoring navigation laws, partial legislation by Congress, and the monopoly of the public expenditure, will spring into life and energy, and become the entrepots of a great commerce. 36 The slavery agitation was not the cause of disunion feeling but the pretext, according to Weston. The disunionists had been chiefly instrumental in getting it up: "It is quite notorious that it "Published in 1858. "P. 68. "P. 69. 198 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [198 is not the slaveholding class at the South which particularly favors nullification." The impoverished condition of the South, which Weston consid- ered the source of the disunion feeling, he thought attributable in part to slavery and in part to, "that unnatural diffusion of their population over new territories," which the Republican party was opposing. 57 There were no internal elements of change in slave society. The slaves were held to their condition by force. The masters were confined to planting by the want of flexibility and adaptibility in the character of the labor which they controlled and upon the proceeds of which they subsisted. The non-slave- holding whites were degraded by slavery with no hope of escape from their abject poverty. 58 There was no hope from any elements of such a population of the growth of towns, of the mechanic arts, or of manufacturing and commercial interests. "Throughout the South, towns are built up only by Northern and European immigration, and without it there would be scarcely any manifestation of civilization. Mills, railroads, cotton presses, sugar boilers, and steamboats, are mainly indebted for their existence in the Southern States to intelligence and muscle trained in free communities." 59 The redemption of the South would come only with the gradual encroachment of the free-labor system of the North and Europe and the non-slaveholding regions of the South upon the slave belts. That encroachment had begun, or soon would begin. As the slave area should be contracted, the discon- tented area would also be diminished, and the Union would be strengthened. "If the course of events in the immediate future be such as may reasonably be anticipated, no separate Southern Confederacy could possibly embrace more than a few States in the southeast corner of the existing Union; and the scheme of such a Confederacy would be put down by the good sense of the people in that quarter, if, indeed, their patriotism would allow it to be even entertained." 60 "P. 58. "P. 13- "P. 15. T. 70. CHAPTER VIII FACTORS WHICH TENDED TO ALLAY DISCONTENT WITH THE SOUTH'S ECONOMIC SYSTEM, 1850-1860 During the decade 1850-1860 there were factors and conditions whose tendency was to make the people of the South better con- tent with their economic system and position. These factors were in part economic, in part political and social. The economic factors tended also, in part not altogether, to allay Southern sectionalism. That on the whole sectional feeling increased during the period was due, in the main, to other and stronger factors. Southern agriculture was comparatively prosperous during the decade. This was especially true of the cotton planting industry. During the decade of 1840-1850 the average price of cotton at Southern seaports was 8 cents; 1 during the following decade it was 10.6 cents. 2 The price was steadier also during the later period. The higher price level was maintained in spite of a rather remark- able succession of large crops from 1851 to 1861. The average yearly production during the first decade was 2,155,400 bales, and during the second, 3,374,100 bales, 3 an increase of over 56 per cent, while the total value of the cotton produced during the latter period was about double that of the former. The crop of 1852-1853, the largest to that time, brought cotton planters nearly $150,000,000. This crop was exceeded both in amount and ag- gregate value by that of 1855-1856. A considerably smaller crop the following year brought in an even greater aggregate, which was exceeded the next year, although the financial crash of 1857 cost the planters many millions. The high-water mark of the ante- bellum cotton industry was reached in 1859-1860, when a crop of 4,861,000 bales was sold for nearly $250,000,000. The tobacco and sugar industries were almost as prosperous. As a result of the development of improved varieties and better methods of curing, the demand for tobacco increased, and produc- tion in the United States grew from 200,000,000 pounds in 1849 *C. F. M'Cay, of Georgia, in Hunt's Merchants' Magazine, XXIII, 602. *DeBow's Review, XXVII, 106. The increase was due in part to an expand- ing money supply. "Donnell, History of Cotton, passim. 199 2OO ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [2OO to 434,000,000 in 1859, about 124 per cent. In Virginia and Ken- tucky, the leading tobacco-producing states, the production was doubled, while in North Carolina it was tripled. 4 Although the tobacco growers continued to complain of the heavy duties im- posed by foreign countries upon American tobacco, 5 there can be no doubt that the industry was more prosperous during the decade before the Civil War than in any other period since colonial times. The sugar industry was a somewhat uncertain one. The crop fluctuated widely from year to year because of occasional early frosts and other unfavorable weather conditions. The price fluctuated even more widely, being dependent not only upon the crop in the United States and the tariff, but also upon the crop in Cuba and Hayti, whence sugar was imported. 6 In 1856 the crop in Louisiana, which produced virtually all of the United States sugar, was only 73,976 hogsheads, and sold for $110 per hogshead. In 1858 the crop was 362,296 hogsheads, and the price $69. However, the industry seems to have been more prosperous from 1850 to 1860 than during the previous decade. The average price was $63, and the average crop 273,450 hogsheads from 1850-1860; the same items for 1840-1850 were $49.75 and 165,150 hogsheads respectively. 7 It was an axiom in the South that when the planting sections were prosperous, the grain-growing and stock-raising regions were also prosperous. In the decade before the war their prosperity was enhanced by the readier access to market which improved roads and newly built railroads afforded. At the same time competition with the agricultural states of the Northwest was rendered less injurious because prices were kept up by the growing demand of the East and Europe for foodstuffs. 8 *Meyer Jacobstein, The Tobacco Industry in the United States, 38-39; Eighth Census, Agriculture, Introduction, pp. xcvi-xcvii. *"Barbarossa," The Lost Principle, 176 ff.; memorial to Congress, by a com- mittee of the Southern Commercial Convention, Knoxville, in DeBow's Review, XXIV, 291-300, Apr. 1858; ibid., XXVI, 315. 'Ibid., XIX, 353, XXII, 320-25, 433-36; Robertson, A Tew Months in America, 88; Stirling, Letters from the Slave States, 182. 7 DeBow's Review, XXIX, 524; Eighth Census, Agriculture, Introduction, xcix. 'Ibid., cxli, cxlvi-cxlix (tables illustrating growth of trade between the West and the East and Europe). 2Ol] FACTORS WHICH TENDED TO ALLAY DISCONTENT 2OI The growing degree of content with the rewards of the cotton industry was reflected in the increased frequency of expressions of fear for the security of America's monopoly of the production of raw cotton. Livingston was said to have reported that cotton grew in the interior of Africa. 9 Attention was given to the possi- bility that India might be stimulated to increased production. Much interest was taken in the Cotton Supply Association, which was organized in 1857 by English spinners for the purpose of stimulating cotton production in India and elsewhere. 10 It has always been true in the South that when cotton prices have risen pleas for the diversification of agriculture have fallen upon deaf ears; so it was during the decade before the War. The agricultural reformers in the cotton belt pleaded with the planters not to make more cotton, but to raise their own hogs, cattle, horses, and mules, and to grow their own corn and wheat thus they would cut down expenses and conserve the fertility of the soil. The reformers told the planters that the high prices were only temporary, and were caused in part by the increased gold supply resulting from the opening of the California mines. 11 The rise in the price of cotton was no greater than the rise in the prices of other things. 12 A small cotton crop, they said, and truly, often brought a greater aggregate than a large one. But planters could not resist the temptation to take advantage of prevailing high prices by increasing their acreage. 13 Somewhat better transportation facilities between the planting and the farm- ing regions promoted the tendency to specialization. The agri- culture of the planting belts was no more diversified, if as much, in 1860 than in 1850. The sugar and cotton planters seem to have resorted, to no diminishing extent, to Tennessee, Kentucky, Missouri, and states 'DeBow's Review, XXIV, 580; Donnell, History of Cotton, 466. "Donnell, op. cit., 454, 466, 478; Hunt's Merchants' Magazine, XLIII, 640. "DeBow's Review, XIV, 280. "Address of A. P. Aldrich at the fair of the South Carolina Institute, 1859, Charleston Mercury, Nov. 19, 1858. "'The price of cotton has raised the price of land, so there is no chance of buying you a cleared plantation now. And during such prices it would be folly to take hands from making cotton in Baldwin to clear the place in Dooly, so we shall have to let planting affairs remain in 'statu quo.' " John B. Lamar to Howell Cobb, Feb. 7, 1850, Toombs, Stephens, Cobb Correspondence. 202 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [2O2 even farther north for horses and mules, hay, bacon, pork, and beef, and even corn and flour. "There is no reason," wrote a planter, "why Tennessee, Arkansas, Mississippi, Alabama, Georgia, and Texas should not raise all of their own horses and mules. There is no earthly reason why these states should not also raise all their own corn, hogs, cows, etc." 14 James L. Orr described the planter of South Carolina as buying his bacon and pork, much of his beef, and not infrequently his corn and flour. 15 Robert Russell, an English traveler, writing of the planters of Mississippi, said, "The bacon is almost entirely imported from the Northern States, as well as a considerable quantity of Indian corn." 16 Exports of Western produce from New Orleans to the North and to Europe fell off very rapidly after the building of railroads from the North Atlantic ports to the West; but there was no falling off in the total receipts of Western products at New Orleans. 17 This was due in part to the increased demands of New Orleans herself, in part to the increased demands of the South generally. Of 1,084,978 barrels of flour received at New Orleans in 1858-1859, 306,090 were exported to Northern ports, 133,193 to foreign countries, and 165,397 to other Southern ports. 18 The fol- lowing year' 965,860 barrels of flour were received at New Orleans, of which 58,739 went to the North, 80,541 abroad, and 247,231 to other Southern ports. 19 The statistics for corn, bacon, pork, and other articles produced north of the planting belt show similar proportions. Moreover, only a portion of the Western provisions shipped down the Mississippi reached New Orleans. For example, of 92,919 barrels of flour shipped from Cincinnati in "DeBow's Review, XIX, 229. "Ibid., XIX, 21 (July, 1855). "North America, 265, 290. "Eighth Census, Agriculture, Intro., clvi, clvii, Tables N and 0; DeBow's Review, IV, 391; V!, 434; X, 448; XII, 83; XVII, 530; XXIII, 365; XXV, 469; XXVII, 471-479. "As an outlet to the ocean for the grain trade of the west, the Mississippi river has almost ceased to be depended upon by merchants." "And even, at no distant date, all the western grain and flour which found a market in New York or New England was shipped to New Orleans in steamboats, and thence around the coast in ocean ships." Eighth Census, Agriculture, Intro., clvii, civ. "Ibid., Intro., clvii; DeBow's Review, XXVII, 479. "Ibid., XXIX, 784; Eighth Census, Agriculture, Intro., clvii. 203] FACTORS WHICH TENDED TO ALLAY DISCONTENT 2O3 1860 to points below Cairo, only 35,146 went to New Orleans. 20 By 1860 the railroads were carrying no inconsiderable amounts of provisions from the West and the farming sections of the South into the planting sections. 21 A comparison of the census reports for 1850 and 1860 indicates that the agriculture of the South as a whole was less diversified in the latter than in the former year. It is sufficient to compare such large items as cotton, tobacco, corn, wheat, oats, potatoes, hogs, sheep, cattle, and draught animals. 22 The per capita produc- tion of Indian corn in the South was 33 bushels in 1840, 32.75 bushels in 1850, and 31 bushels in 1860. The population of the South increased 23.9 per cent between 1850 and 1860; during the same time the annual production of cotton had been doubled and of tobacco more than doubled. In the leading cotton state, Mississippi, the cotton crop was increased 150 per cent, and the corn crop, 32 per cent. The percentages for Alabama were 73 and 18, for Louisiana 336 and 65, and for Georgia 41 and o. South Carolina produced less corn but 17 per cent more cotton in 1860 than in 1850. Tennessee, the leading corn state of the South, grew no more corn in 1860 than in 1850, but had increased her cotton crop by one-half. Virginia and North Carolina gained but little in corn produced; but tobacco production had been doubled in the one and tripled in the other. During the decade the annual oats crop had declined in every Southern state except Virginia and Texas; for the South as a whole the falling off was over 40 per cent. In 1850 the Southern states produced 4.87 bushels of sweet potatoes per capita; in 1860, 4.16 bushels. There were fewer hogs in the South in 1860 than in 1850; the leading hog-raising states, Tennessee and Georgia, showed decreases, while Virginia, Texas, and Arkansas showed increases. Outside Texas there were fewer neat cattle in the South in 1860 than in 1850. The number of milch cows, however, increased 20 per cent; and the production of butter increased from 6.12 to 6.55 pounds per capita. The number of sheep had increased less than 10 per cent, and the wool clip but 18. The statistics for hogs, neat cattle, and sheep may be contrasted with those for draught animals, ""Eighth Census, Agriculture, Intro., clviii. "DeBow's Review, XXIV, 214. "Eighth Census, Agriculture, Intro., passim. 2O4 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [204 which were employed in the culture of the staples. The number of mules, oxen, and horses increased between 1850 and 1860 by 103, 42, and 22 per cent respectively. The only important food stuff of which there was a remarkable increase of production was wheat. The crop was 17,795,761 bushels in 1850 and 31,441,826 bushels in 1860, a gain of 77 per cent and an increase from 2.5 to 3.5 bushels per capita. The largest gains were made in Tennessee, North Carolina, and Georgia; they were attributable very largely to the building of railroads which gave access to market to the farmers of eastern Tennessee, western North Carolina, upper Georgia, and north Alabama. As the great staple industries became more profitable, a tendency was manifested to boast of the prosperity of the South, to proclaim her strength rather than her dependence, and to glorify agriculture and assert its superiority to other industries in every respect in productivity, in the development of individual character and strength, as the conservator of the moral and social order, as a guarantee of the permanence of republican institutions, and as a basis for the political power of a nation. Planters had long complained that they were at the mercy of the "money power," the Bank of England or combinations of speculators and spinners, who took advantage of the necessity of cotton planters to realize quickly upon their cotton in order to pay advances they had received while their crop was growing. As late as October, 1851, a cotton planters' convention at Macon, Georgia, published a scheme for organizing the planters to keep up the price of cotton. 23 Later in the decade, with demand out- running production, the "law of supply and demand" seemed sufficient guarantee against exploitation. "Cotton has outlived and outgrown the influence of the money power of the Bank of England," wrote a contributor to DeBow's. "Many years since, Mr. Van Buren . . . said that a combination of the Bank of England 'diminished the value of every man's property in America.' This was particularly true at the South, . . . That plan was tried to check the rising values in 1856 and 1857; but for the first time without success. . . . The combinations of spinners are of no avail; the manufacturing wants exceed the "DeBow's Review, XII, 110, 121-6, 275-80. 2O5] FACTORS WHICH TENDED TO ALLAY DISCONTENT 2O5 power of the South." 24 There were even signs of a breaking away from the deplorable system of advances to planters; and certain it is that the advances came more frequently from home banks and less frequently from foreign factors than formerly. 25 The South was beginning to accumulate the capital with which to market her staples. There was reason for self-congratulation also in the way the South came through the financial crash of 1857. The South was not as hard hit as the West and North, and, because of large crops at good prices, recovered more rapidly. 26 Southern merchants paid their debts in Eastern cities as usual in 1858;" and Eastern merchants were induced to seek purchasers in the South rather than in the West. 28 Never before had Southern banks held so large a proportion of the nation's specie as in 1858, 1859, and i86o. 29 This favorable balance may have been due in some degree to smaller purchases of Northern and foreign goods after the panic, and, possibly, to a partial carrying out of threats of non-inter- course in retaliation for Northern "aggressions"; but the chief explanation lies in the unusual sums realized from the crops of those years. Formerly when comparisons had been made between the slave- holding and the free states, Southern men had generally been con- tent to trace " 'Southern decay' to other causes than Slavery which in fact is all that saves us." 30 In 1849 Ellwood Fisher, of Cin- cinnati, in a lecture there, maintained, "in opposition to the exist- ing opinion on the subject," that the "South is greatly the superior of the North in wealth in proportion to the number of their "DeBow's Review, XXVII, 107. "Cotton is king. The Bank of England was until lately, but the last time she tried to put on the screws she failed." J. H. Hammond in the Senate, Mar. 4, 1858, Cong. Globe, 35 Cong., I Sess., 961. "DeBow's Review, XXVII, 107; Hunt's Merchants' Magazine, XLII, 157; Charleston Courier, Nov. 5, 1860. ~*DeBow's Review, XXVI, 92, 582, quoting the United States Economist. "Charleston Mercury, Mar. n, 1858, quoting the New York Herald; Hunt's Merchants' Magazine, XXXVIII, 583. "Ibid., XLII, 70; DeBow's Review, XXVI, 583. "Hunt's Merchants' Magazine, XXXIX, 459; XLII, 157; XLIII, 455. *J. H. Hammond to Calhoun, Aug. 18, 1845, Calhoun Correspondence. 2O6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [206 citizens respectively." 31 This proposition he sought to demonstrate by a formidable array of miscellaneous statistics ingeniously arranged. Both the thesis and the method of demonstration were comparatively new to the South. J. H. Hammond, reviewing the lecture for the Southern Quarterly Review, said: "It will be per- ceived .... that Mr. Fisher strikes out into a bold and to most persons we doubt not an entirely new train of facts and arguments in his discussion of this subject." 32 He refuted some of Fisher's arguments. Fisher's lecture, however, was well received in the South. 33 Both his conclusions and method were followed with in- creasing frequency in succeeding years, chiefly, no doubt, because slavery must be defended, but partly because the economic posi- tion of the South seemed to justify doing so. Alexander H. Stephens defended slavery by demonstrating the superiority of the slave state of Georgia over the free state of Ohio in prosper- ity and all other respects in which abolitionists were wont to make invidious comparisons. 34 B. F. Stringfellow used Fisher's method in his pamphlet, Negro Slavery No Evil, as did many other less able defenders of the institution. The arguments of those who would diversify Southern industry were more frequently refuted during the few years preceding the war than before. This was due in part to improved economic con- ditions in the South, in part to growing fears on the part of the dominant social class that diversification would tend to undermine the existing social order, and in part to the political situation. "For fifty years," wrote George Fitzhugh, "she [the South] has been more usefully, more industriously, more energetically, and more profitably employed than any people under the sun. Yet all the while she has been envying and wishing to imitate the little 'truck patches,' the filthy, crowded, licentious factories, the mer- cenary shopkeeping, and the slavish commerce of the North." 35 n Lecture on the North and the South, delivered before the Young Men's Mercantile Library Association, of Cincinnati, 1849 (pamphlet), p. 7. The lec- ture is in DeBow's Review, VII, 134 ff., 262 ff. "Southern Quarterly Review, XV, 276. **DeBow's Review, VII, 134. Fisher was made editor of the Southern Press, a short-lived organ established in Washington, 1849, by Southern members of Congress. "Cleveland, Alexander H. Stephens in Public and Private, 429-32; 432-59. Review, XXIII, 587. FACTORS WHICH TENDED TO ALLAY DISCONTENT 2O/ The Montgomery Daily Confederation, a conservative organ, pro- tested against the doctrines which found favor in the Southern Commercial Convention: "That the North does our trading and manufacturing mostly is true, and we are willing that they should. Ours is an agricultural people, and God grant that we may continue so. We never want to see it otherwise. It is the freest, happiest, most independent, and, with us, the most power- ful condition on earth." 30 Those who attended the Southern Commercial Convention and interested themselves in schemes for the regeneration of the South made much of the argument that commercial and industrial independence would augment the political power of the South and enable the Southern people to better defend their rights and interests. But the majority seem to have preferred to stake the security of Southern rights and inter- ests upon the efficacy of the "cotton is king" argument, and the "cotton is king" argument arose from the fact that the people of the South were chiefly engaged in producing a few great staples for export. Frequent reference has been made in former chapters to the use of this argument in some form or other. It may be briefly recapitulated: The South produced an immense surplus for export of great staples, particularly cotton, which had become necessities for millions of people the world over, supported a large part of the commerce and trade of the world, constituted the raw material for factories in England and America employing millions of capital and hundreds of thousands of hands, and furnished the basis for American credit in Europe. With the return from their staples the Southern people purchased manufactured goods from the North and from Europe and provisions from the West, whose production, sale, and transportation gave employment to factories, farmers, shippers, and merchants. When one computes the capital and labor dependent either directly or indirectly upon the production and export of Southern staples, he has a stupendous total, and the Southerner was only too prone to exaggerate the part his cot- ton played in keeping the wheels of the world's industry in motion. And cotton and negro slavery were said to be synonymous: the South had a monopoly of the world's cotton supply; only negroes held in slavery could make the great crops of cotton; therefore, "May 19, 1858. See also above, pp. 50-58, and below, pp. 222-23. 208 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 8401 86 1 [208 destroy slavery and the mighty structure reared upon it would come down with a crash. 37 Also, as long as the sections were de- pendent upon each other, the South had at hand a powerful political weapon in the form of threats to limit the cotton supply, to manufacture it herself, to conduct her own commerce, to adopt a policy of non-intercourse, to secede, to do anything, in short, which would injure interests elsewhere, the prosperity and perma- nence of which depended upon the continuance of existing com- mercial relationships between the sections. Furthermore, those who desired disunion or believed it inevitable could plausibly argue that secession would be peaceful: the interruption of Southern trade and the cutting off of the cotton supply, which war would cause, would so prostrate Northern industry that the section would be incapable of waging war; England and France would not tolerate a war which might involve the interruption of their supply of cot- ton. A Southern confederacy once established, they could further argue, cotton would be the power which would preserve the peace and secure favorable commercial treaties. It is apparent that the continued potency of the "cotton is king" argument depended upon the South's remaining exclusively agri- cultural; to the extent the Southern people should become industrially and commercially independent the argument would lose force. George Fitzhugh wrote: "Indeed, the South will commit a fatal blunder, if, in its haste to become nominally inde- pendent, it loses its present engines of power, and thereby ceases to be really independent .... It is our great agricultural surplus that gives us power, commands respect, and secures inde- pendence. . . ," 38 It is apparent also that for the "cotton is king" argument to be -an entirely satisfactory one from the Southern '"'It seems, indeed, when the whole of the facts brought together are con- sidered, that American slavery, though of little force unaided, yet properly sus- tained, is the great central power, or energizing influence, not only of nearly all the industrial interests of our own country, but also all of those of Great Britain and much of the continent; and that, if stricken from existence, the whole of those interests, with the advancing civilization of the age, would receive a shock that must retard their progress for years to come." Christy, Cotton is King (second edition) 163. **DeBow's Review, XXIII, 341 (Dec., 1857). Fitzhugh found reason soon to change his opinions somewhat. 209] FACTORS WHICH TENDED TO ALLAY DISCONTENT point of view, the agricultural system upon which it was based must be satisfactory to the Southern people. Southern statesmen and politicians had long used the "cotton is king" argument in one form or another without reserve and with considerable effect. During the crisis of 1850, for example, it ap- peared in the frequent calculations of the value of the Union. But at no time did cotton seem more powerful, and the Southern people more inclined to exult in it and wield it as an instrument of political power, than during the several years immediately pre- ceding the Civil War. After the passage of the Kansas-Nebraska bill, Professor Christy, of Ohio, published a very ingenious volume entitled, Cotton is King, one of whose theses was that an alliance had been struck between the planters of the South and the pro- ducers of provisions in the Northwest. 39 But it was chiefly to the industrial and commercial centers of the North that the appeal was made. Jefferson Davis, .speaking to a Boston audience in Faneuil Hall, said: "Your interest is to remain a manufacturing, and ours to remain an agricultural people. Your prosperity, then, is to receive our staple and to manufacture it, and ours to sell it to you and buy the manufactured goods." 40 John B. Floyd said in New York: "I rejoice that the great staples of the South are the chief means by which your commerce is fostered, and your mechanics and artisans kept constantly at work." 41 During the campaigns of 1856 and 1860 Southern orators were sent to Northern cities. R. M. T. Hunter, Robert J. Walker, Henry W. Hilliard, Herschel V. Johnson, and even William L. Yancey were all adept in appealing to the business interests. 42 Nor did these appeals to interest fail to raise up powerful allies for the South in the North the "Northern men with Southern principles." Leading journals closely identified with the business interests, such as the New York Herald, the New York Express, the Boston Post, the Boston Courier, and the Philadelphia Atlas, defended the South and slavery and described the dire effects upon the North of goading the Southern states into non-intercourse or Tp. 144 ff., especially. *Mrs. Varina Davis, Jefferson Dazis, I, 630. "DeBow's Review, XXI, 604. 4t lbid., XXI, 53038; 589-602; Hilliard, Politics and Pen Pictures, 294-302; New York Herald, Sept. 22, Oct. n, 1860, speeches of Yancey in Washington and New York. 2IO ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [210 secession. Slavery had its defenders in the pulpit and in the schools. Northern politicians friendly to the South were not courting Southern popularity only. So effective was cotton as an argument for slavery that optimistic men from time to time detected a "returning sense of justice" in the North and a change in the attitude of the people of England and France toward slavery. 43 The improved condition of Southern agriculture in the fifties was reflected in, and gave rise to, a somewhat different aspect of the labor problem. Between 1840 and 1850 when prices of cotton and slaves were low, the feeling was pretty strong throughout the South that there was a redundancy of labor engaged in the culture of cotton. Planters welcomed suggestions that slaves be diverted from cultivating cotton to other labor. The possibility of employ- ing them in factories and in the construction of internal improve- ments was canvassed. The experiment was tried in both fields, and in the latter, at least, proved successful. 44 In the next decade the prosperity of Southern agriculture, especially cotton growing, and to some extent the employment of slaves upon works of internal improvement, created a strong demand for labor. Prices of slaves rose to unprecedented figures. A contributor to DeBow's, 1856, said the price of field hands had nearly doubled in five years. 45 A Georgia delegate to the Southern Commercial Conven- tion, the same year, said negroes were worth from $1000 to $1500 each, and there were ten purchasers to every seller. 46 Frequent accounts of the sales of slaves affirm the truth of these asser- tions. 47 The prices continued to rise until secession. This remarkable rise in prices occurred notwithstanding the fact that the labor force engaged in the production of cotton and sugar was receiving large increments in addition to the natural increase of slaves. Partly because of the high prices offered for "Cleveland, Alexander H. Stephens, 647 ff.; DeBow's Review, XXIV, 423; New Orleans Picayune, Jan. 5, 1858; J. H. Hammond, speech at Beech Island. S. C., July 22, 1858, in Charleston Mercury, July 27. "DeBow's Review, XXIX, 254; XVII, 76-82; Phillips, American Negro Slavery, 375-378. "DeBow's Review, XXI, 158. "Ibid., XXII, 222. 47 This subject is thoroughly discussed in Phillips, American Negro Slavery, 373-375, and chart, p. 370. 21 1] FACTORS WHICH TENDED TO ALLAY DISCONTENT 211 slaves by planters, and partly because of the influx of foreigners and the increasing difficulty of controlling slaves in cities, the slave population of such large cities as Baltimore, New Orleans, St. Louis, and Charleston declined between 1850 and 1860. The slave population of Charleston fell from 19,532 in 1850 to 13,909 in 1860; that of New Orleans declined from 16,845 to I 3>385, notwithstanding there was a remarkable increase in the total population of the city. 48 In Richmond, Savannah, Augusta, Columbus, Memphis, Nashville, Mobile, Natchez, and other towns there was a considerable decline in the proportion which the slave population bore to the white population. 49 Thousands of slaves were transferred each year from the border states and the older cotton states to Arkansas, Mississippi, Louisiana, and Texas; and there can be no doubt that they went to the cotton and sugar plantations of those states. Olmsted estimated the number of slaves annually sold south from the northern slave states at more than 2O,ooo. 50 Winfield Collins estimated from the reports of the U. S. Census that during the period 1850-1860, 207,000 slaves were transferred from the selling states, which in- cluded North and South Carolina, to the buying states. 51 In Delaware and Maryland the slave population declined during the decade. 52 In Virginia it increased only 3.88 per cent; in South Carolina, 4.53 per cent; in Kentucky, 6.87 per cent; in North Caro- lina, 14.73 P er cent; and in Tennessee but little more. The increase in the total slave population of the United States during the decade was 23.39 P er cent, of which at least 20 per cent represented natural increase. A by no means inconsiderable increment to the labor force of the planting belts of the cotton states consisted of slaves imported from outside the United States in violation of Federal and state laws. Collins considers 70,000 a "moderate and even low" estimate of the number of slaves imported between 1850 and i86o. 53 DuBois, in his Suppression of the African Slave Trade, asserts that the laws against the foreign slave trade were ^Compendium of the Seventh Census, passim; Eighth Census, Population, passim. The slave populations of St. Louis, Baltimore, and Louisville were small. "Ibid.; DeBow's Review, XXX, 70. ""Cotton Kingdom, I, 58 n. ^Domestic Slave Trade, 66. "Eighth Census, Population, 599. 0p. cit., 20. 212 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [212 "nearly nullified," and that the increase of illicit traffic and actual importations in the decade 1850-1860 may almost be termed a reopening of the slave trade. 54 But these additions to the labor force of the cotton and sugar plantations were incommensurate with the demand, and could not be made indefinitely. Considerable speculation was indulged in as to whence would come the labor which would enable the cotton planters to extend their operations in the future, and the South to maintain her position as the chief source of the world's cotton supply. John M. Cordoza, an old and reliable commercial editor of Charleston, said the yearly increase in the cotton crop of the United States was regulated by a fixed law, namely, the increase in slave population, which was three per cent per annum. True, pro- duction had been increasing at a more rapid rate because of the transfer of slaves from the non-cotton states to the cotton belt and from poorer to more fertile lands within the belt; but this process could not go on indefinitely. Improved methods and labor saving machinery could be considered negligible factors in in- creasing production. He had no fear of foreign competition. 55 Other observers thought the tobacco and grain growing states had no redundancy of labor, and were unlikely to have "so long as their present prosperity continues." 56 J. B. Gribble, a New Orleans cotton factor who reviewed the trade for Hunt's Merchants' Magazine, believed that the poor whites would be in- duced by the high prices to labor; in fact a change was already perceptible, and soon many "small crops" would tell with some effect upon the aggregate yield. 57 The United States Economist, 1859, pictured the cotton states as prosperous and the prospects for the future of the cotton industry as brilliant. With the ad- vancing prices of slaves it would be "impossible to limit the in- crease of supply to the rule which now governs it, viz., the natural increase of hands." Cultivation would be undertaken by whites. 58 About 1856 there was begun a lively agitation in the cotton states in favor of the repeal of the laws prohibiting the foreign "Pp. 178, 183. "DeBow's Review, XXII, 337-49 (Apr., 1857). "'Charleston Mercury, May 4, 1858, article by P. A. Morse, of Louisiana. The same is in DeBow's Review, XXIII, 480. "XXXVII, 554-61. "'Quoted in DeBow's Review, XXVI, 582. 213] FACTORS WHICH TENDED TO ALLAY DISCONTENT 2IJ slave trade; this agitation continued until after secession. The movement for the renewal of the slave trade may be attributed in part to the demand of the planting interest for a larger and cheaper labor supply; to the extent this may be done, the move- ment testifies to the prosperous condition of Southern agriculture. The movement and the accompanying discussion also brought out clearly two divergent conceptions of a proper Southern policy. One looked to the diversification of industry, the encouragement of white immigration, and the development of free rather than slave labor. In this view, the future lay with the white race; and the South had other interests than slavery. The other con- ception of policy looked to the preservation of a slave society and the plantation system, and was antagonistic to any changes which might endanger the existing social and economic order. A study of the movement for reopening the slave trade should con- tribute to an understanding of this deep seated division in Southern public opinion. The movement illustrates also the growth of sectional feeling and disunion sentiment and the existence of sectional divisions in the South, with their basis in conflicting interests. As early as 1852, L. W. Spratt, the editor of the Charleston Standard, advocated the reopening of the African slave trade. For a few years he was almost alone. In the Southern Commercial Convention, New Orleans, 1855, a Louisiana delegate introduced a resolution recommending that Southern congressmen work for the repeal of the Federal laws against the slave trade; but the resolution elicited no discussion. 59 The first responsible leader to publicly espouse the cause was Governor Adams, of South Caro- lina. In his message to the Legislature, November, 1856, he argued at length for revival of the trade, examining the subject in all of its aspects, economic, political, social, and moral. 00 The lower house of the Legislature after a short but animated debate referred the governor's recommendation to a special committee, which was permitted to defer its report until the next session. Apparently only a small minority wished to agitate the subject. 61 In South Carolina, as elsewhere, Adams's recommendation was considered "DeBow's Review, XVIII, 628. "Charleston Daily Courier, Nov. 26, 1856. l DeBow's Review, XXVII, 364. Savannah Republican, Dec. 15, 19, 1856. 214 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84OI 86 1 [214 a move to advance the cause of disunion. 62 The Savannah Republican had no idea that it was made in good faith, but only as the "handmaid and twin sister of Disunion." 63 Southern leaders in Congress hastened to correct the impression which the discussion in South Carolina was creating elsewhere, and resolu- tions were introduced and adopted declaring against reopening the foreign slave trade. 64 But these resolutions failed to check agitation. The subject was injected into the proceedings of the Southern Commercial Con- vention at Savannah, December, 1856, and the revival of the trade was favored by a very aggressive minority. 65 At Knoxville, the following year, the subject occupied the larger part of the time of the convention. 66 A resolution declaring that the joint patrol article of the Treaty of Washington, 1842, should be abrogated, was adopted. At the sessions of the Commercial Convention held in Montgomery, 1858, and Vicksburg, 1859, the foreign slave trade was virtually the only subject discussed. 67 At Vicksburg the convention adopted a resolution declaring that "all laws, state or Federal, prohibiting the African slave trade, ought to be re- pealed." The delegates from Louisiana, Mississippi, and Arkansas formed an "African Labor Supply Association," of which J. D. B. DeBow was made president. 68 The avowed purpose of the organ- ization was not, as the name may suggest, to encourage the im- portation of slaves notwithstanding the laws against it, but to conduct an agitation for their repeal. 69 Meanwhile the question had come before the state legislatures. The Mississippi Legislature, 1857, had before it a plan to charter the "African Labor Immigration Company" authorized to bring in "Savannah Republican, Dec. 5, 1856; Daily National Intelligencer, Dec. 2, 1856. "Dec. 6, 1856. "Cong. Globe, 34 Cong., 3 Sess., 123-26. "Proceedings, in Savannah Republican, Dec. 9-15, 1856; Df Bow's Review, XXII, 81-105, 216-24. ""Proceedings, in ibid., XXIII, 298-320. "Proceedings of the Montgomery session are in ibid., XXIV, 473-491, 574- 6c6. Debate upon the slave trade is in Hodgson, Cradle of the Confederacy, 371-392. Proceedings of the Vicksburg session are in DeBow's Review, XXVII, 94-103, 205-220, 468-471; New York Herald, May 18, 21, 1859. e *DeBow's Review, XXVII, 120. ""Letters, Yancey to DeBow, DeBow to Yancey, in ibid., XXVII, 231-35. 215] FACTORS WHICH TENDED TO ALLAY DISCONTENT 215 negroes as "apprentices." 70 No action was taken upon it. The Louisiana House of Representatives, by a large majority, passed a bill providing for the importation of 2,500 African negroes to be indentured for a term of not less than fifteen years. A select com- mittee of the Senate reported the bill favorably. The Senate, by a majority of only two votes, postponed the bill indefinitely. 71 Both the Mississippi and the Louisiana measures were said to be compatible with the Federal Laws prohibiting the slave trade. 72 In the South Carolina Legislature of 1857-1859 the subject was again considered. In January, 1859, DeBow wrote: "Certainly no cause has ever grown with greater rapidity than has that of the ad- vocates of the slave trade, if we may judge from the attitude it is assuming in most of our Southern Legislatures." 73 In the press also the subject received its full share of attention. The great increase in the illicit foreign slave trade during the 18505 can be attributed largely to the enormous profits made possible by the high prices slaves were commanding; but the state of public opinion in the South was also favorable to it. It was notorious that the law r s were being violated. The newspapers commented upon the slave smuggling and sometimes with ap- proval. Federal officials were remarkably inefficient and apathetic in the enforcement of the laws against it. It seemed impossible to get a jury in the South to convict a slave trader. 74 In the Southern Commercial Convention at Vicksburg, L. W. Spratt and others openly advocated violation of the laws. When opponents declared the agitation useless because Congress would never legal- ize the trade, Spratt replied that if the trade were approved by Southern sentiment, it would matter little what might be the TO New Orleans Delta, Feb. 9, 1858; DeBow 's Review, XXV, 627. "New Orleans Picayune, Mar. 5, 21, 27, 1858; De Bow's Review, XXV, 491 ff., 627. The report of the select committee of the Senate is in ibid., XXIV, 421-24. "Henry Hughes, "State Liberties, or the Right to African Contract Labor," in ibid., XXV, 626-53; report of the select committee of the Louisiana Senate, just cited. But see opinion of Secretary of the Treasury Cobb, House Exec. Docs., 36 Cong., 2 Sess., IV, No. 7, pp. 632-36. DeBow' s Review, XXVI, 51. See also ibid., XXVII, 493, quoting the Richmond Whig. 74 New Orleans True Delta, May 5, 1859. Also Charleston Mercury, Mar. 4, II, 1858, quoting the New Orleans Delta; Mercury, May 22, Aug. 5, 1858; Du- Bois, Suppression of the African Slave Trade, 183-87. 2l6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840- 1 86 1 [2l6 course of Congress. 75 More honorable was the suggestion fre- quently made that the laws against the foreign slave trade were unconstitutional and should be nullified. The Committee on Federal Relations of the Senate of Louisiana argued that the Federal laws against the foreign slave trade were unconstitutional, and the state was in duty bound to interpose; the legislature had an unquestionable right to enact a law permitting the importation of slaves from Cuba, Brazil, etc., and any attempt on the part of the Federal authorities to interfere with its operation would be tyranny. 76 We cannot be too critical of the motives either of those who favored or of those who opposed reopening the African slave trade. The prominent leaders of the movement were disunionists, and were known as such before the agitation had well begun. They saw in the foreign slave trade another issue which would divide the sections, and in the certain refusal of the North to permit the revival of the trade another pretext for dissolving the Union. The debate turned almost as much upon the advisability of debating the question as it did upon the advisability of reopen- ing the trade. The Charleston Mercury deplored the agitation of the question because it divided and distracted the South. 77 Others answered that if disunionists waited for a united South they would never get out of the Union. 78 The great majority of the Unionist leaders and newspapers were opposed to raising the question. They charged that the agitation had been got up to promote disunion. 79 Advocates of reopening the slave trade made the counter charge that its opponents were afraid to debate the question on its merits. They were willing to sacrifice the interests "DeBow's Review, XXVII, 212; New York Herald, May 18, 1859. H. S. Foote branded such utterances as "high treason." DeBow's Review, XXVI, 485 (extract from the report). Such prominent men as W L. Yancey and ex-Governor J. D. McRae argued that the Federal laws prohibiting the foreign slave were unconstitutional. Hodgson, Cradle of the Confederacy, 379; DeBow's Review, XXVII, 362-64. T7 Mar. 10, 1859. Also speech of R. B. Rhett, July 4, 1859, in Mercury, July 7- T8 E. g., John A. Jones, of Georgia, in the Montgomery Commercial Conven- tion, Hodgson, op. cit., 377. "New Orleans Picayune, Mar. 21, 1858. 2I/] FACTORS WHICH TENDED TO ALLAY DISCONTENT 2 If of the South to avoid raising an issue which might endanger the stability of the Union. 80 The agitation for the revival of the slave trade may be regard- ed as, in a measure, merely a reaction to the excesses of the Garrisonian abolitionists in the North. J. J. Pettigru, in his report to the South Carolina Legislature, said: "It is not intended to impute directly or indirectly a want of sincerity to the supporters of the measure; .... but a great many worthy persons are honestly disposed to make issue with the North from a spirit of pure combativeness, without regard to ostensible causes." 81 It could very plausibly be argued that the reopening of the African slave trade was necessary if the South were to maintain the sectional equilibrium upon which the maintenance of her rights and interests in the Union was said to depend. The North was said to be gaining three congressmen a year and rapidly settling new free states and territories by virtue of foreign immi- gration. 82 How could the South maintain her political equality when the only class of immigration she could attract and use was barred? A bitter contest was being waged over Kansas. Kansas, it was painfully evident, was being lost to the South because there was no excess of slave population to go into it. Plans for acquiring Cuba and territory in northern Mexico or Central America with a view to making slaveholding states of them were said to be futile without the reopening of the foreign slave trade; for either there would be no slaves to populate them, and they would be- come free states; or the older slave states would be drained of their slave population, and become free states. Alexander H. Stephens and Jefferson Davis both said the South could not hope for any great extension of slave territory unless the slave trade were reopened. 83 Indeed, without population to take advantage of them, the Kansas-Nebraska bill and the Dred Scott decision were empty victories. Even without further extension of territory, it *E. g., W. H. McCardle, of Mississippi, in the Vicksburg convention, New York Herald, May 18, 1859. "DeBow's Review, XXV, 306. "^Temple, of Tennessee, in Southern Commercial Convention, Knoxville, 1857, ibid., XXIII, 319. "Stephens's farewell address to his constituents, Augusta, Georgia, July 2, 1859, in Cleveland, Alexander H. Stephens, 647; Davis, quoted in Cairnes, The Slave Power, 243 n. 2l8 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1840-1861 [2l8 was said, there was a possibility of the loss of Maryland, Ken- tucky, and Missouri to slavery through the transfer South of the slave population and the influx of elements hostile to it. "There is no denying," said Yancey, "that there is a large emancipation interest in Virginia and Kentucky and Maryland and Missouri, the fruits of which we see in Henry Winter Davis, Cassius M. Clay, and Thomas H. Benton." 84 Advocates of reviving the slave trade contended that the measure was necessary to secure slavery against the attacks of present or future foes within the cotton states themselves. If there should arise a serious shortage of labor, Northern and European labor, unfriendly to slavery, would come in to supply the de- ficiency. Governor Adams, of South Carolina, said, that, if the South could not supply the demand for slave- labor, "we must expect to be supplied with a species of labor we do not want, and which is from the very nature of things antagonistic to our insti- tutions." 85 Fears were expressed that the "labor base" was already becoming too narrow. "We need to strengthen this institu- tion," said Yancey, "and how better can we do that than by showing the non-slaveholding class of our citizens that they can buy a negro for $200, which, in a few years, by his care and in- struction, will become worth a thousand dollars ?" 86 Some of these agitators accepted the "irrepressible conflict" doctrine. " .... in Tennessee, and even Georgia, Alabama, Mississippi, and Louisi- ana," said L. W. Spratt, "there is a large class of persons who have to make their own bread with their own hands, and these are distinctly conscious that there is a difference between 'labor' and 'slave labor.' " 87 Opponents of reopening the slave trade denied that it would make slavery more secure: slavery was most secure when the prices of slaves were highest. 88 They also denied the presence in the South of a large class inimical to slavery. Roger A. Pryor characterized it a "foul libel upon the citizens of the M In Southern Commercial Convention, Montgomery, DeBow's Review, XXIV, 587. "Charleston Daily Courier, Nov. 26, 1856. "DeBow's Review, XXIV, 587. "''Report on the Slave Trade Made to the Southern Convention at Mont- gomery," etc., in ibid., XXIV, 473-91. (Quotation on page 489.) ""E.g., H. S. Foote, in the Vicksburg convention, ibid., XXVII, 219; Pettigru, Minority Report in S. C. Legislature, ibid., XXV, 176. 219] FACTORS WHICH TENDED TO ALLAY DISCONTENT 219 South to thus endorse what Greeley and Seward have been assert- ing so many years . . ." He admitted that "emigrees" from the North might be considered hostile to slavery. The facts seem to have been against Pryor's contention. 89 Everywhere in the South where white laborers came into com- petition with slaves there was hostility on the part of the whites toward negroes and their masters and a demand, not for the eman- cipation of slaves to be sure, but for their exclusion from the employments in which competition was felt. This spirit was noticeable especially among mechanics and artisans and unskilled laborers in the cities. In South Carolina the white mechanics memorialized the Legislature, 185 8-1859, for l aws prohibiting slaves from hiring their own time and working at mechanical employ- ments. 90 In the Southern Commercial Convention at Vicksburg, Mr. Purdon, of Mississippi, offered resolutions, which had been adopted by a meeting of white mechanics, condemning the practice of making public mechanics of negroes, and declaring that slave labor should be confined to the corn, cotton, and sugar plantations. 91 In Ala- bama and North Carolina also there was opposition to the em- ployment of slaves in mechanical pursuits. 92 In the latter state workingmen's associations began the agitation for the ad valorem tax upon slave property, which became the leading issue of state politics during the few years immediately preceding the war. 93 The author of The Impending Crisis of the South claimed to rep- resent the free labor of North Carolina with whose development slavery interfered. In New Orleans and other cities of the South the practice of employing slaves as draymen was abandoned be- cause of the objections of whites. 94 Nor were all of those who favored the restriction of slave labor to the plantations working- f De Bow's Review, XXIV, 581. ""Extract from the report of the committee on negro population, J. Harlston Read, Jr., chairman, in ibid'., XXVI, 600 ff. "Ibid., XXVII, 102. "Montgomery Daily Confederation, Jan. 19, 1859; Olmsted, Cotton King- dom, II, 137; Republican Banner and Nashville Whig, Aug. 18, 1857 (riotous demonstration of white mechanics of Wilmington, N. C., against negro me- chanics). "J. W. Moore, History of North Carolina, II, 137, 138; Wm. K. Boyd, "North Carolina on the Eve of Secession," in Amer. Hist. Assoc., Rept., 1910, pp. 168, 174. "DeBow's Review, XXIV, 602. 22O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [220 men. Others favored it to prevent a "war between free labor and slave labor in our midst," to make white labor "aristocratic" and invite immigration, and to obviate difficulties of controlling slaves in cities and towns. 95 Immigrants from the North and Europe were generally unfriendly to slavery. There were farming com- munities in the cotton states from which the whites would have been glad to have all negroes expelled. 96 In several of the slave- holding states, notably Alabama, Tennessee, North Carolina, and Virginia, there were political divisions based upon the division of each into a farming, largely non-slaveholding section and a planting section or black belt. The people of the farming sections were not generally hostile to slavery, but they did resent the political dominance of the planters. So the fears of Spratt and others that opposition to slavery might grow up in its very midst were not at all groundless. All of these classes hostile or potentially hostile to negroes or slavery or both were opposed to reopening the African slave trade. If the South were to have immigration, they preferred that it be white immigration. They were joined by those who, while devoted to slavery, feared it to be a doomed institution: if emancipation should ever occur, they thought, the South would have a quite sufficient race problem with the natural increase of her existing negro population. 97 On the question whether or not it would be to the economic in- terest of the cotton planters and the South to increase the labor force engaged in the production of cotton by the importation of slaves from abroad, there was a difference of opinion. In the opinion of the advocates of reopening the slave trade, the demand for cotton was growing so rapidly that production could be materially increased without reducing the price. A failure on the part of the South to produce sufficient cotton to supply the de- mand might result temporarily in exorbitant prices which would stimulate production in other quarters of the globe, and, conse- quently, cause the loss of America's monopoly and, finally, a "Charleston Courier, Dec. 28, 1856, letter on "Policy of Planters"; So. Quar. Review, XXVI, 447. "Olmsted, A Journey in the Back Country, II, 236, and passim (Putnam's ed., 1907). "DeBow's Review, XXVII, 219. 22 1 ] FACTORS WHICH TENDED TO ALLAY DISCONTENT 221 permanent decline of prices. The cotton crop could not be sufficiently increased without fresh supplies of labor. Reopening the African slave trade would supply the deficiency. Further, a revival of the slave trade would lower the prices of slaves, and thus reduce the cost of production. The possibility of producing cotton by white labor received considerable attention, especially from a class of Northern and English writers who were interested not so much in the future of cotton as in the future of slavery. 98 White labor, they asserted, was cheaper than negro slave labor, and whites could work in the climate of the cotton belt. Robert Russell, the most competent of the British observers, put a high estimate upon the advantages of the plantation system, but saw no bar in the climate to production of cotton by white labor. He remarked the considerable amount of cotton already grown in the pine barrens, whose climate was even warmer than that of the middle zone or uplands, where most of the plantations were located." Of the people of the South some believed white labor for cotton production available, but con- sidered it undesirable; others, waiving the question of desirability, professed to believe it unavailable. Many seem to have believed the assertion so frequently made that, as one put it, "In the cotton, rice, and sugar regions, slave labor is not only more productive, but is the only species of labor which can be depended upon for the cultivation of these great staples." 100 Those who made this assertion knew, of course, that thousands of non-slaveholding whites were engaged in a small way in the production of cotton. DeBow estimated the number so engaged in 1850 at 100,000; the number of slaves employed in the cotton fields he set at Soo.ooo. 101 The great majority of the planter class seem to have taken little interest in the poor whites, and to have had less faith in making them productive members of society. As for European labor, it was not forthcoming, whether for climatic, social, or other reasons. Said DeBow: "It is plain, and time and events have M F. L. Olmsted, Cotton Kingdom, II, 254-59, 265-67; Journey in the Back Country, 377 ff.; Edward Atkinson, Cheap Cotton by Free Labor, by a Cotton Manujacturer; Weston, Progress of Slavery, 44; Stirling Letters from the Slave States, 234, 302 if.; Russell, North America, 284 ff. "North America, 284, 285. Cf. M. B. Hammond, The Cotton Industry, 94 ff. 100 A. J. Roane, of Washington, DeBow 's Review, XX, 66 1. 101 Industrial Resources of the Southern and Western States, I, 175. 222 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-1 86 1 [222 demonstrated the fact, that it is not European labor which we want, since that labor, during so long an experiment has not taken foothold in our limits, evidencing thus an incapacity to adopt itself to our conditions and to become amalgamated with us." 102 Naturally the planters themselves, from economic motives alone (although this aspect of the matter was not publicly discussed), would not invite competition from a large number of white farmers, whether native or immigrant. Opponents of reopening the slave trade denied that it would benefit the agricultural interests. -A material increase in the cotton crop would depress prices. Cheap cotton would benefit only the manufacturer. America's position as the chief source of raw cotton was not endangered. Slaves from Africa would constitute a poor grade of labor, and, therefore, would not lessen the cost of production, however much they might depress the price of slaves. 103 Advocates of the reopening of the African slave trade claimed that it would be beneficial to other industries as well as agriculture. The great obstacle, they said, was lack of labor. As long as cot- ton culture paid more for labor than other employments could af- ford, it was idle to attempt to divert labor to them. 104 The use of such an argument was plainly an attempt to meet the opposition to the slave trade ot those who were urging diversification of industry as a proper policy for the South. The argument was inconsistent with the contention that renewal of the slave trade would benefit agriculture. And diversificationists were not desirous of diverting labor to less profitable industries; in their opinion, the develop- ment of varied industry would benefit all. The suggestion made, that slave labor might be used in manufactures, could not carry great weight. It had been tried with small success. However, the great obstacle to the development of diversified industry in the South was not so much lack of labor as a deficiency of capital. There was much unprofitably employed white labor in the South. DeBotff's Review, XXVII, 232. 10S J. J. Pettigru, minority report of a committee of the S. C. Legislature, in ibid., XXV, 166-185; 289-308; speech of ex-Senator Brooke, of Miss., in the Vicksburg Convention, ibid., XXVII, 360-62; and most of the speeches and papers against reopening the slave trade. 1M The best statement of this argument is in L. W. Spratt, ''Report on the Slave Trade," etc., Montgomery Convention, in ibid., XXIV, 473-91. 223] FACTORS WHICH TENDED TO ALLAY DISCONTENT 22j On the very eve of the war, William Gregg wrote, "The idea that we lack laborers at the South, and will be under the necessity of importing wild Africans, is preposterous." He told why the immi- grant did not come South: When he learns that "one-half of our white people, who are willing to work, can not procure employment that able-bodied men are roaming about the country glad to get work at seventy-five cents per day and find themselves while similar labor commands a dollar or more at the North and West, is it at all surprising that he does not come to the South?" 108 We come again to the fact that many of the slaveholding element in the South, including advocates of the reopening of the slave trade, feared the development of white labor and sought to prevent it by keeping the white laborers in a minority. They neither wished to employ profitably that already in the South or to invite immigration. Gregg and others of his way of thinking, on the contrary, had no fear of white labor. They wanted to put the whites to work as well as the blacks, and they were inclined to welcome immigration from the North and Europe. They pro- fessed to believe that a white population, profitably employed, would not be inimical to slavery. They were not hostile to slavery, but they saw no necessity for subordinating every other interest to this single one. Reopening the African slave trade, could it have been accomplished, would have been a measure to perpetuate the old order in the South. The New Orleans Picayune took note of this fact. After describing at some length the progress being made in manufactures and internal improvements and the changes which were coming over the South, it said: "It is worse than folly to arrest the present direction of capital and enterprise by plans whose effect, if successfully carried into execution, would restore the former tendency of all Southern enterprise to the channel of agriculture." 106 It could not be concealed that there was very strong opposition to the foreign slave trade on moral and religious grounds. L. W. Spratt, the arch-agitator, said all the women and all the "pious" were against him. 107 The influx of a horde of barbarians, said opponents, would change Southern slavery from a patriarchal 1 O oo vo o r- oo vo ON oo d O ON * oo d r^ vo OO HH CO HH d vo * oo 4 O oo d r-- o CO 00 1* | d d ON so d HH SO ON -< o oo x & W h5 vo 00 o vo 00 HH vo vo 00 sg OO O 1 \\ r o O ^ d co S C/3 _) > I c< OsO v/ ^O ThOs^ ^O K o o\ooi-ic i 'y?'-' of^-O\ l rL W i co W P oo \o cs oo r^- oo O 8 f*5 co w PI d oo & * 2 M ^ "" cri y CO Os OS fe O Q - ^ - - ^ _O ^\ ^t" ^" t- 1 ^ O, ^ > O I DH "f " f_j OB < Q '*S * -OS-OON" b * 4 OH 2 C-) -^ - . M >, ;;;:;;;:;; , H ' i : iJ : : : : : : ,- o JK iliaSi^lii 297] APPENDIX TABLE III REGISTERED AND ENROLLED AND LICENSED TONNAGE IN STATES AND DISTRICTS OF THE UNITED STATES, 1793-1860* STATE 1793 1810 CITY 1837 1850 1860 Massachusetts (^ egi f ^ [Enrolled^ 135,599 51,402 352,806 107,260 Boston . . . 127,955 73,049 270,510 50,177 411,410 52,802 New York... /Registered [Enrolled 45,355 13,986 188,556 83,536 New York 191,322 219,549 44i ,336 394,230 838,449 625,551 Pennsylvania /Registered [Enrolled 60,924 4,579 109,628 14,255 Philadelphia 39,156 42,592 64,205 142,292 67,094 174,642 Maryland... /Registered [Enrolled 26,792 9,512 90,045 46,247 Baltimore . 34,954 32,153 90,669 58,349 114,185 85,923 Virginia {^f^ [Enrolled 23,997 12,093 45,339 31,284 Norfolk . . . 1,864 10,857 10,542 13,592 10,452 15,934 No. Carolina. /Registered [Enrolled 10,167 2,764 26,472 10,562 Wilmington 6,551 2,o88 9,123 6,074 13,372 io,335 So. Carolina.. / R ^tered [Enrolled 12,998 2,058 43,354 9,449 Charleston 8,226 12,957 15,377 17,915 38,490 26,934 Georgia.. . /Registered \Enrolled 1,568 283 12,405 3,107 Savannah . 6,493 6,414 io,437 9,293 27,560 12,280 Alabama.. . /Registered [Enrolled Mobile . . . 2,733 7,585 7,403 i6,753 22,442 30,314 Orleans Ty... /Roistered [Enrolled 11,386 1,326 New Orleans 3i,383 60,992 86,668 165,040 132,199 96,043 Timothy Pitkin, Statistical View of the Commerce of the United States, pp. 397 ff. ; Com- merce and Navigation, 1838, p. 308; 1850, Statement No. 15; 1860, p. 658. tEngaged in the foreign trade. {Including licensed. Engaged in the coastwise trade, etc. '*" te in*, iff" i -^ * 298 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1 86 1 [298 TABLE IV CONSUMPTION OF COTTON IN THE UNITED STATES, 1840-1861* (Bales of 500 Ibs. each) Year North, includ- ing Maryland South and West South, includ- ing Virginia West, includ- ing Kentucky 1839-1840 286,193 59,000 " 1840-1841 282,288 70,000 1841-1842 258,850 64,000 1842-1843 315,782 70,000 1843-1844 336,057 71,000 1844-1845 374,5o6 80,000 1845-1846 411,810 85,000 1846-1847 417,476 91,000 1847-1848 523,892 92,152 49,652 42,500 1848-1849 503,201 130,000 95,000 35,ooo 1849-1850 465,702 137,012 109,512 27,500 1850-1851 386,429 99,185 87,185 12,000 1851-1852 588,322 111,281 95,281 16,000 1852-1853 650,393 153,332 123,332 30,000 1853-1854 592,284 144,952 106,952 38,000 1854-1855 57i,H7 135,295 109,295 26,000 1855-1856 633,027 137,712 95,712 42,000 1856-1857 665,718 154,218 116,218 38,000 1857-1858 452,185 H3,377 104,377 39,000 1858-1859 760,218 167,433 122,433 45,000 1859-1860 792,521 185,522 136,522 49,000 1860-1862 650,357 193,383 141,383 52,000 *The table was made from the estimates of the New York Shipping List, as quoted in Hunt's Merchants' Magazine, and E. 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Memphis, 1 845. HAMMOND, JAMES H. Letters on Southern Slavery; Addressed to Thomas Clarkson, the English Abolitionist. Charleston, 1848 (written in 1845). ABBOTT, LAWRENCE. Letters from the Hon. ... to the Hon. William C. Rives of Virginia. Boston, 1846. A Voice from the South: Comprising Letters from Georgia to Massachusetts, and to the Southern States. Baltimore, 1847. FISHER, ELLWOOD. Lecture on the North and the South; Delivered before the Young Men's Mercantile Library Association of Cincinnati, Ohio, January 16, 1849. Cincinnati, 1849. 3O2 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, l84O-l86l [302 Proceedings of the National Railroad Convention, which assembled in the City of St. Louis, on the fifteenth day of October, 1849. ... St. Louis, 1849. Minutes and Proceedings of the Memphis Convention assembled October 23, 1849. Memphis, 1849. National Plan of an Atlantic and Pacific Railroad and Remarks of Albert Pike made thereon, at Memphis, November, 1849. Memphis, 1 849. JAMES, CHARLES T. Practical Hints on the Comparative Cost and Productiveness of the Culture of Cotton, and the Cost and Productiveness of its Manufacture. Ad- dressed to the Cotton Planters and Capitalists of the South. 1 849. SMITH, HAMILTON. Cannelton, Perry County, Indiana, at the Intersection of the East- ern Margin of the Illinois Coal Basin. . . . Louisville, 1850. Proceedings of the Convention in Favor of a National Road to the Pacific Ocean. . . . Philadelphia, April 1st, 2nd and 3rd, 1850. Philadelphia, 1850. TRESCOTT, WILLIAM H. The Position and Course of the South. Charleston, 1850. TOWNSEND, JOHN. The Southern States; Their Present Peril and their Certain Remedy. , 1850. BRYAN, EDWARD B. The Rightful Remedy. Addressed to the Slaveholders of the South. Charleston, 1850. GARNETT, MUSCOE R. H. The Union, Past and Future: How It Works and How to Save It. Washington, 1850. DERBY, E. H. Reality versus Fiction; a Review of a Pamphlet . . . entitled, "The Union, Past and Future. . . ." Boston, 1850. GRAYSON, W. J. Letter to his Excellency, Whitemarsh B. Seabrook, Governor of . . South Carolina, on the Dissolution of the Union. Charleston, 1850. [MAGRATH A. G.] A Letter of Southern Wrongs and Southern Remedies; addressed to the Hon. W. J. Gray son, in reply to his Letter to the Governor of South Carolina. . . . Charleston, 1850. CHEVES, LANGDON. Speech of . . . Delivered before the ... Nashville Conven- tion, . . . November 15, 1850. Columbia, 1850. Southern Rights Association. Barnwell District, South Carolina, Meeting, January 6, 1851. 1851. Proceedings of the Meeting of Delegates from the Southern Rights Associations of South Carolina, held at Charleston, May, 185 r. Columbia, 1851. Proceedings of the Great Southern Co-operation and Anti-Secession Meeting, Held in Charleston, September 23, 1851. Charleston, 1851. BARNARD, F. A. P. Oration delivered before the Citizens of Tuscaloosa, Alabama, July 4, 1851. Tuscaloosa, 1851. ELLIOTT, HON. WILLIAM. The Letters of Agricola. Greenville, S. C., 1852. (First published, 1851.) Address to the People of the Southern and Western States, and more particularly to those of La., Tex., Miss., Ala., Tenn., Ark., Ky., and Mo. (By a committee, in behalf of the New Orleans Railroad Convention, 1852). New Orleans, 1851. Proceedings of the Southern and Western Commercial Convention, at Memphis, Tennessee, in June, 1853. . . . Memphis, 1854. Graniteville Manufacturing Company. Report of the President and Treasurer for the Year 1854. (William Gregg, Pres.) Charleston, 1855. CAREY, HENRY C.| The North and the South. (Reprinted from the New York Tribune.) 1854. 303] BIBLIOGRAPHY 303 Journal of the Proceedings of the Commercial Convention of the Southern and Western States, . . . Charleston . . , Commencing . . . loth April, 1854. Charles- ton, 1854. Two Tracts for the Times, the one entitled, "Negro Slavery No Evil" by B. F. String- fellow, of Missouri; the other, "An Answer to the Inquiry, 'Is It Expedient to In- troduce Slavery into Kansas?' " by D. R. Goodloe, of North Carolina. Boston, 1855. GREGG, WM. Speech of ... on the Bill . . . to authorize aid to the Blue Ridge Rail- road Company in South Carolina. Columbia, 1857. WESTON, GEORGE M. The Poor Whites of the South. Washington, 1856. BURWELL, WILLIAM. True Policy of the South, with Suggestions for the Settlement of our Sectional Differences. Washington, 1856. Official Report of the Debates and Proceedings of the Southern Commercial Convention assembled at Knoxville, Tennessee, August 10, 1857. Knoxville, 1857. (An ap- pendix contains the proceedings of the session at Savannah, December, 1856.) Wealth, Resources and Hopes of Virginia. (From the Daily Southern Argus.) Norfolk, 1857. FIELDER, HERBERT. The Disunionist: a Brief Treatise upon the Evils of the Union . . . and the Propriety of a Separation and the Formation of a Southern United States. , 1857. HUGHES, HENRY. Report . . . read before the Southern Commercial Convention at Vicksburg, May 10, / 2OI -4> 2 9; diversion of capital to manufactures advised, 36-37, 40-46; glorification of, 51, 204; prosperity of (1850-60), 199- 230; not being diversified, 201-4, 22 8; progress of, and manufactures com- pared, 228; see also cotton, tobacco, sugar Alabama, mineral survey, 42, 170; dis- union movement, 73, 75, 77, 90; dis- criminatory taxation, 156; retaliation against North, 160; no state aid to railroads, 172; agricultural condi- tions, 202-4; slaves in mechanical pursuits, 219; sectionalism, 220, 232, 241; manufactures, 227; secession, 232, 238, 241 f.; on foreign slave trade, 270 Amazon river, Southern interest in navigation of and steamship lines to, 1 1 8, 130, 132, 133, 139 Anticipations of the Future to Serve as Lessons for the Present, etc., 187-89 Arkansas, aid to internal improvements, 173; secession, 233, 278 Augusta, Georgia, direct trade conven- tions, 17 ff.; cotton manufactures, 61 notes, 262; Northerners in, 100 Baltimore, seeks steamship line to Europe, 116; Southern Commercial Convention, 129-31; attempts to profit by sectional struggle, 176; and secession, 275, 277, 286 Banks, extent of capital, 12, 23, 101, 107; question of increasing capital in Virginia, 24, 27; improvements sug- gested, 26-27; methods criticized, 106, no, 195; position strengthened, 205, 229; see also capital and credits Barnard, F. A. P., on Southern indus- trial dependence, 49; on causes of dis- union movement, 85 Bell, John, in Southern Commercial Convention, 131-32; opposes dis- unionist doctrines, 193; candidate for president, 238; on effects of secession, 250; goes over to secessionists, 283 Benton, Thomas H., denounces Nash- ville Convention, 74; and Southern Commercial Convention, i37n., 218 Berrien, J. M., 90; proposes discrimina- tory taxation, 160 Blockade of the South, disunionist ex- pectations regarding, 187-88, 208; effects, 266-67 Bluffton movement, 37-39, 152; and disunion, 69-70; design to revive, 73 Border states, attitude toward disunion movement (1850), 74, 79, 87; con- sidered by disunionists (1852-60), 1 8 1, 1 88, 235-36; views on economic effects of secession, 184-85; sell slaves, 21 1 ; fears for slavery in, 217; against reopening foreign slave trade, 224; secession delayed, 233-34; views of causes of secession of cotton states, 249-52; watch early economic policies of Confederacy, 257, 259; cotton states' attitude toward secession of, 268; fear revival of foreign slave trade, 270-72, 281; considerations affecting decision as to secession, 273-88, 291; secessionists identified, 283-88; see also Virginia, Kentucky, etc. Boyce, W. W., Nullifier and coopera- tionist (1850), 89; for free trade and direct taxation, 139, 141, 163-64 Brown, Joseph E., secessionist per se, 73; on causes of secession, 247; on di- rect trade, 256; on export taxes, 260 Burwell, William, on internal improve- ments, 127; on Norfolk, 130 Butler, A. P., Nullifier and cooperation- ist (1850) 89; on tariff, 163 Calhoun, A. P., I43n., on tariff, 165; Calhoun, John C., and direct trade with Europe, 17, 29; on state of agricul- ture, 34; opposes Bluffton movement, 38-39; on Tariff of 1842, 39; on un- equal operation of Federal govern- ment, 67, 82; and disunion movement (1850), 55, 72-74, 82, 90-92; in South- western Convention, 124-25; candi- date for nomination for president, 152; and manufactures, 154; on com- mercial retaliation against North, 157 Capital, deficiency of in South, com- mercial dependence on North as cause, 20-22, 8 1, 94, 190-91; unequal oper- 315 3l6 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 840-1861 [316 ation of Federal government as cause, 22, 67, 80 ff., 182; as cause of com- mercial dependence, 22-23, 26, 105; industrial dependence as cause, 41, 48-49, 190-191; handicaps develop- ment of manufactures, 45-46, 63, 183; cotton manufactures to supply, 49; direct trade with Europe to supply, 99 ff., 183, 184; financial depen- dence on North, 100-7; handicaps all enterprises, 104; capital beginning to accumulate, 204-5; agriculture and railroads absorb, 226; Northern and European capital coming, 229, 293; see also banks and credits Charleston, direct trade convention ( I 839), 17 ff.; imports, 19; conduct of commerce, 25; yellow fever, 25n.; and Cincinnati railroad, 29-30; progress and aspirations, 97; character of population, 100; as distributing cen- ter, no; harbor improvement, 113; steamship lines and projects, 118, 256; Southern Commercial Conven- tion, 133-36; aid to railroads, 172; and secession, 239, 251; see also cities and towns Charleston Mercury , and Bluffton move- ment, 38, 70; disunion organ, 73, 179; on Southern Commercial Conven- tion, 150; for disunion, 184, 193; de- plores slave trade agitation, 216; on causes of secession, 247; on Confeder- ate Constitution, 262; against pro- hibition of slave trade, 271 Cheves, Langdon, approves Bluffton movement, 38; for disunion, 69, 70; speech in Nashville Convention, 75n.; cooperationist (1850), 89 Christy, David, Cotton Is King, 208, 209 Cities and towns in South, few and small, 12, 296; seaports languishing and dependent, 15, 20; natural ad- vantages, 25, 112; aspirations, 96-98; Northerners and foreigners in, 99- 100; as distributing centers, no-n; anticipated effects of secession on, 183, 191, 197; slave populations de- clining, 21 1 ; labor troubles, 53, 219; and secession, 239-43, passim, 251, 284-85; see also Charleston, New Orleans, etc. Civil War, secessionist anticipations, 181, 187, 188-89, 208, 235; affects economic policies of the Confederacy, 2 55> 2 59 ff-> an d secession of border states, 282-83, 2 9 J ? n t inevitable, 294 Clay, C. C., on fishing bounties and other protective legislation, 164; dis- unionist member of Congress, 180 Clingman, Thomas L., on value of Union (1850), 82; on benefits of secession, 252, 273 Cobb, Howell, opposes secession of Georgia (1850), 73, 77, 89; Secretary of Treasury, on tariff, 165; on foreign slave trade, 215; and secession, 240; and tariff policy of Confederacy, 265 Commerce of South, external, amount of foreign, 12, 15, 295; amount of foreign goods consumed, 107-10; extent of, with North and West, 108- 9; little internal commerce, in; with West, 201-3; see a h commercial de- pendence, North, and West Commercial dependence of South, de- gree and evils of, 12, 15-16, 19-22, 32, 81, 94-104, 127, 128, 190, 207, 208, 290; causes analyzed, 22-25, IO 5> 107- 113, 292; remedies proposed in direct trade conventions, 25-30; secession as remedy, 80, 83, 183-85, 188, 191- 92, 194-95, 197, 293; various remedies, 113; projects for steamship lines to Europe, 114-22; considered in South- ern Commercial Convention, 130-34, 138-39. i4 J -42> H7> 149; discrimina-, tory taxation as remedy, 156-61, 167- 72, 176-78; commercial non-inter- course with North as remedy, 157- 58> 175-76; patronage of direct im- porters as remedy, 173-75; expecta- tions of commercial progress as cause for secession, 237, 248-49, 251-54, 256, 263, 275-76; see also Confederate States, direct trade conventions, ship- ping and shipbuilding Compromise of 1850, debated, 72-74; denounced in Nashville Convention, 75; contests over acceptance, 76-78; aggravates sectionalism, 128 Confederate States of America, tariff and commercial policies considered by disunionists, 181, 183-85, 188-89, 2 43; formulated, 257-67 (see tariff policy of Confederacy); foreign relations considered by disunionists, 181, 185, 189, 194, 208, 243; policy formulated, 259, 261, 263-67; expansion antici- pated, 181-82, 250-51, 253; navigation of Mississippi considered by disunion- ists, 181, 185, 189; policy formulated, 258-59, 261, 280; admission of West- ern States considered, 185-86, 189, 268; foreign slave trade policy con- INDEX 317 sidered by disunionists, 181-82, 270- 72; Confederacy organized, 233; Provisional Constitution, 233, 260, 271, 274; Permanent Constitution, 233, 261, 269, 271, 274, 281; naviga- tion laws of, 261. Congress of United States, attempts compromise to save Union, 231, 233; House of Representatives on causes of secession, 252 Corporations, opposition to, 42, 154 Cotton, prices, 26, 33-35, 60, 102, 199, 201 ; overproduction of, 26, 36 ff., 125, 204; depression in the industry, 33 ff.; factorage system, 101; crop, 199, 203; prosperity of the industry, 199- 225; labor shortage in, 210-13; see also manufactures Cotton Is King, 2o8n., 209; cotton is king argument, 207-10, 266 Cotton planters' conventions, 37, 94, 204 Crawford, Geo. W., Governor of Georgia, on encouraging manufac- tures, 42, 154 Credits, long, system of in South, 16, 23, 101, 105-6; cause of commercial dependence, 23-24; handicaps cotton manufacturers, 63-64; handicaps im- porters, 105; signs of breaking away from, 205 Crittenden, J. J., on necessity of Union, 87; and secession, 279 Davis, Jefferson, leader Southern Rights Party in Mississippi, 77; and surveys for Pacific railroad, 135; on Tariff of 1857, 166; appeal to Northern busi- ness interests, 209; on revival of slave trade, 217; on causes of secession, 246; and tariff and foreign policies of Confederacy, 264, 265-67; on ad- mitting non-slaveholding states to Confederacy, 269 Dawson, Senator Wm. C., and origin of Southern Commercial Convention, 129; presides in, 129, 131, 133; op- poses Pike's plan for Pacific railroad, 135 DeBow, J. D. B., on political aspects of diversification of Southern industry, 56; objects to disunionists' doctrines, 78; on warehousing system, 93; in- terest in direct trade, 94; and origin of Southern Commercial Convention, 128; on objects of, 134; presides, 140; disunionist, 140, 180; chairman com- mittee, Commercial Convention, 147; on Tariff of 1857, 163; and Southern advertising, 175; reviews Southern Wealth and Northern Profits, 192; and revival of slave trade, 214, 215; on white labor in cotton industry, 221; on immigration, 221; and causes of secession, 247; on effects of seces- sion, 249, 267; characterized, 293 DeBow's Review, for development of manufactures, 43; disunionist teach- ings, 1 80, 193, 237; on effects of se- cession, 257, 267; on revenue clause of Confederate Constitution, 262; char- acterized, 293 Democratic party in South, two wings, 66-67, 88-92; attitude toward se- cession (1850), 76-77, 89-92; and diversification of industry, 87; and Southern Commercial Convention, 147; attitude on tariff, 151-54, 161, 163, 165-66; and corporations, 154- 55; and discriminatory taxation, 159, 167; and Federal protective legisla- tion, 163-64; and state aid to internal improvements, 172-73; Southern Rights wing in ascendancy, 179; at- titude towards secession (i 860-61), 238-43, 284-86 Devereaux, Thomas P., on slavery and white labor, 53, 54 Direct trade conventions of 1837-39, origin and objects, 13, 16-18, 30; composition and temper, 17-18; pub- lic interest in, 17 f., 31; proceedings, 19-30; slavery and disunion little consideration, 30-31; results, 32; pro- ceedings republished, 94 Direct trade convention, at Old Point Comfort (1850), 115; (1857), 120; at Richmond (1851), 116; at Bristol, Va., 120 Discriminatory taxation, see taxation Disunion movement, see secession move- ment Dred Scott Decision, empty victory without slave trade, 217 Education and culture in South, back- wardness, 13, 147; effect of manu- facturing on, 50; discussed in South- ern Commercial Convention, 132-33, 142, 147, 158; pleas for home patron- age, 173; George Fitzhugh's interest in, 176 Elmore, F. H., report on direct trade, 1 8, 25; opposes Bluffton movement, 38; and disunionist movement, 73 3l8 ECONOMIC ASPECTSOF SOUTHERN SECTIONALISM, 1840-1861 [318 Federal government, see internal im- provements and taxation and dis- bursements Financial dependence of South, 100-7; see also capital and banks Fisher, Ellwood, compares North and South, 205 Fitzhugh, George, doctrines, 176-78; praises agriculture, 206; on power of cotton, 208 Floyd, John B., proposes discrimina- tory taxation of Northern goods, 159- 60, 1 68 Foote, Henry S., Unionist leader, 77; denounces Rhett's disunion speech, 83; on value of Union, 86; in Southern Commercial Convention, 131; op- poses slave trade, 2i8n. Forsyth, John, compares North and South, 47; describes Mobile, 98; on effects of secession, 197 Gadsden Purchase and Pacific railroad, 135-36 Garnett, M. R. H., The Union, Past and Future, etc., 79-81; Calhoun Demo- crat, 92 Georgia, progress of cotton manufac- tures, 41, 44, 226; disunion movement (1849-50), 73, 75, 76; question of cor- poration charters, 154; question of discriminatory taxation, 160, 167- 68; state aid to railroads, 172; con- dition of agriculture, 203; secession, 232, 238-40, 245; direct trade pro- jects, 256; tariff sentiment, 261; against foreign slave trade, 271 Gregg, William, advocates establish- ment of cotton manufactures, 40-42, 45, 46; Essays on Domestic Industry, 40-41; manufacturer, 41, 42; on poor whites, 52, 223; on progress of cot- ton manufactures, 58, 6 in.; on evils of commercial dependence, 95; on Charleston as distributing center, no; opposes state aid to manufac- tures, 155; tariff man, 166; on patron- age to home industries, 174; refutes disunionist arguments, 194; on foreign slave trade, 223 Hamilton, Gen. James, 17; opposes Bluffton movement, 70; on disunion- ist sentiment in South (1850), 86; cooperationist in South Carolina, 89 Hammond, J. H., 17; advocates diver- sification of industry, 35, 49, 50, 155; and Bluffton movement, 36, 38-39; compares North and South, 47; on poor whites, 52; ready for secession, 73; _ cooperationist (1850), 89; on panic of 1857, 103, 1040.; on Southern commerce, 108; on Charleston's commerce, 113; "Plan of State Ac- tion," 161; reviews Fisher's pamphlet, 206 Harris, W. P., on tariff policy of Con- federacy, 263 Hayne, Robert Y., in direct trade con- ventions, 17; reports on direct trade, 1 8, 21; on long credits, 23; starts son in importing business, 28 Henderson, Gen. John B., of Missouri, on causes of secession, 251 Hicks, Governor of Maryland, on causes of secession, 250, 282 Hilliard, Henry W., on value of Union, 86; in Southern Commercial Conven- tion, 143; appeals to Northern busi- ness interests, 209; against foreign slave trade, 224; and secession of Alabama, 241 Houston, Sam, Governor of Texas, opposes secession, 232 Hunter, R. M. T., Calhoun Democrat, Senator, 91; and Tariff of 1857, 163; attacks ship subsidies, 164; appeals to Northern business interests, 209; on tariff and commercial policies of Con- federacy, 264; on effects of secession on border states, 273 Immigration, mostly to non-slavehold- ing states, 12; manufactures would at- tract, 57; attitude of South, 57 f., 213, 220-21, 223; not discussed in Southern Commercial Convention, 146; considered by disunionists, 181; immigrants unfriendly to slavery, 220 Industrial dependence of South, see manufactures Internal improvements, Federal aid to, attitude of South, 112-13, 115, 116- 17; discussed in Southwestern Con- vention, 124-26; in Chicago Rivers and Harbors Convention, 125-26; requested for Pacific railroad, 126, 133, 148; considered by Southern Commercial Convention, 132, 133, 142, 147, 148, 172; prohibited by Confederate Constitution, 261 Iverson, Alfred, of Georgia, disunionist member of Congress, 180; on tariff policy of Confederacy, 259 319] INDEX 319 James, Charles T., of Rhode Island, in- terest in cotton manufactures in South and West, 43, 45-46, 226; on poor whites, 52 Johnson, Andrew, on causes of secession, 250, 281, 287 Jones, John A., Southern Rights Demo- crat, 90; free trader, 165; on slave trade, 216 Kansas-Nebraska bill, 136, 179 Kansas troubles, considered in Southern Commercial Convention, 140; Eng- lish bill, 165, 181; fan sectionalism, 179; Kansas question and foreign slave trade, 217 Kennedy, John P., on causes of seces- sion, 250; opposes secession of Mary- land, 275-77 Kentucky, doesn t calculate value of Union (1850), 87; secession defeated, 233; considerations affecting de- cision against secession, 279-80, 282- 83, 286; see also border states Kettell, T. P., on manufactures in South, 61; estimates value of Union to North, 81-82, 190-91; quoted in South, 8 1, 191-92; refuted, 254 King, Thomas Butler, 17; agent of Georgia to Europe, 256 Labor, in manufactures,^!-^, 45, 51- 55, 62, 2ic, 222; prejudice against manual, 51; attitude of laboring class toward slavery and slaveholders, 53- 54, 218-20, 223, 290; shortage of in cotton and sugar industries, 210- 13, 220-22; see also poor whites, slavery, slave trade Lamar, L. Q. C., on secessionists, 238 Letcher, John, Governor of Virginia, 233; on causes of secession, 249 Lincoln, Abraham, 234, 235, 239, 249, 273; see also presidential elections London, D. H., for discriminatory taxes on indirect imports, 117, 167 Louisiana, sentiment for Union (1850), 74, 87; for tariff, 151, 166, 259, 261; state aid to railroads, 172; sugar in- dustry, 200; condition of agriculture, 203; legislature considers revival of slave trade, 215-16, 225; secession, 232, 242; and Confederate aid to in- ternal improvements, 262; and Con- federate prohibition of foreign slave trade, 271 Lumbering in South, considered in Southern Commercial Convention, 133, 147; value of, 228-29 Lumpkin, Joseph H., on cotton manu- factures in South, 60; secessionist per se, 73; Calhoun Democrat, 90 Lyon, James, remarks as president of Southern Commercial Convention, 138-39 McDonald, A. G., for secession of Georgia, 73, 77; Calhoun Democrat, 90 McDuffie, George, in direct trade con- ventions, 17; writes address in be- half of, 1 8; on direct trade, 21, 28n.; on long credits system, 23; alludes to secession, 31; supports Bluffton move- ment, 38; on Tariff of 1842, 39; views on tariff and secession, 68-69; on state protection to industry, 157 Magoffin, Governor of Kentucky, and secession, 233, 280 Mallory, Francis, report in Richmond Direct Trade Convention (1838), 19 ff. Mann, A. Dudley, plan for "Steam Ferry," 119-20, 139, 141, 257; Con- federate commissioner to Europe, 257, 264-66 Manufactures in South, extent and growth, 12, 33, 42, 44, 58-59, 226-30; growth of cotton, 33, 42, 44, 58-59, 226, 298; profits of cotton, 33, 43, 45, 60-6 1 ; beginning of movement to develop cotton and other, 35-40; development of movement, 40-46, 127; evils of dependence on North de- picted, 40-41, 46-49, 290; benefits of manufactures, 49-58; opposition, 50- 54, 223, 290; relation of movement to diversify industry to sectional quar- rels, 55-58; movement ends, 58-59; causes for failure, 59-64, 105, 174; manufactures discussed in Southern Commercial Convention, 125, 131- 33, 147; people awake to need, 149; attitude of anti-tariff men, 154-56; discriminatory taxation of Northern goods proposed to encourage, 156-61, 167-72, 176-78; commercial non- intercourse proposed to encourage, I 57-5^> 175-76; patronage of home in- dustries urged,_63, ^173-75, 255; ad- vocates of diversification become disunionists, 182, 291; disunion ex- 32O ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-l86l [320 pected to promote, 183-85, 188, 191- 92, 194-95, 293; manufacturers re- assured by disunionists, 194; argu- ments of diversificationists refuted, 206-10; diversification and foreign slave trade, 213, 222-23; deficiency of capital the great obstacle, 222; ex- pectations of industrial independence as cause for secession, 249, 273-75, 291; measures after secession to en- courage manufactures, 255; cotton manufactures would have come, 293 Marketing system in South; see credits and cotton factorage Maryland, depression of manufactures, 6on.; secession defeated, 233; con- siderations affecting decision for Union, 274 f., 277, 282-83, 286 Mason, James M,, not disunionist -per se (1850), 84; Senator, Calhoun Democrat, 91; and steamship line, Norfolk to Antwerp, 116; commis- sioner to Europe, 264 Mason, John Y., and steamship line to Europe, 117 Maury, M. F., on warehousing system, 94n.; on Southern merchants, 99; interest in navigation of Amazon, 118 f.; in Southern Commercial Conven- tion, 130, 135 Meade, R. K., in Old Point Comfort Convention, 115; and steamship line to Europe, 116 Memminger, C. G., 17; on class con- sciousness of white labor, 53-54; co- operationist (1850), 89; "Declaration of Immediate Causes" of secession of South Carolina, 243-44 Memphis, Southwestern Convention, 124-26; Pacific Railroad Convention, 126; Southern Commercial Conven- tion, 131-33 Mercantile Convention, Richmond, 116 Merchants and Planters Convention, Macon, 247, 257; on Confederate tariff and commercial policies, 266 Merchants in South, prejudice against mercantile business, 24, 28; lack of permanent native class of, 99-100 Miles, Wm. Porcher, disunionist in Con- gress, 1 80; on tariff policy of Confed- eracy, 263 Millson, John S., report in Norfolk Di- rect Trade Convention, 19 Mining in South, progress, 12, 226; mineral surveys, 42, 170; discussed in Southern Commercial Convention, 147, 167; no class to secure fostering legislation, 171; fields about to be opened, 229, 293 Mississippi, State, of, secession senti- ment, 73-75; secession defeated (1850), 77; discriminatory taxation discussed, 160; aid to railroads, 172; condition of agriculture, 202-3; con- siders revival of slave trade, 214-15, 224, 270; hostility of white labor to slavery, 219; secession, 242, 245 Mississippi river, improvement of navi- gation demanded, 112; as outlet for Western commerce, 185, 202; ques- tion of navigation considered by dis- unionists, 1 8 1, 185, 189; policy of Confederacy formulated, 258-59, 261, 280 Missouri, secession defeated, 233; con- siderations affecting decision for Union, 279-80, 282-83, 286 Mobile, aspirations, 98; business con- trolled by Northern men, 100; harbor of, H2; aid to Mobile and Ohio rail- road, 173; and secession, 241, 251 Montgomery Daily Confederation, on Southern Commercial Convention, 143, I44n.; on tariff, 165; Union not detrimental to South, 193; opposes diversification of industry, 207 Nashville Convention, 71, 128; origin, 73-74; objects and composition, 74- 75, 83n.; proceedings, 75-76; con- siders commercial retaliation, 157-58 National Intelligencer, opposes discrimi- ' natory taxation, 160; on causes of secession, 250 New England, attitude toward South- ern cotton manufactures, 45; depres- sion of cotton manufactures, 60-6 1; methods of meeting Southern com- petition, 62-63 New Orleans, exports and imports, 15; character of population, 31, 99; Union sentiment, 87; and warehousing sys- tem, 93; awakens to need of railroads, 97; panic of 1857, 102-3; yellow fever, H2n.; demands improvement of Mississippi river, 112; railroad con- ventions, 127; jealous of Baltimore, 130; interest in railroad across Te- huantepec, 132; Southern Commer- cial Convention, 136-38; attitude of South toward, 137; and Western trade and secession, 185, 189; West- ern commerce of, 202; hostility of white laborers to slaves, 219; and 321] INDEX 321 secession, 243, 251; project for steam- ship line to Europe, 256 New Orleans Delta, on Southern Com- mercial Convention, 132, 138; dis- unionist, 180 New Orleans Picayune, on panic of 1857, 103; on Southern Commercial Convention, 149; Union not detrimen- tal to South, 192; against reviving slave trade, 223; on Southern prog- ress, 230 Newton, Willoughby, Calhoun Demo- crat, 92; on economic benefits of secession, 184; on slavery and se- cession, 281 New York City, importance of South- ern trade, 21; financial concentration, 101; finances movement of Southern staples, 101 f.; advantages over Southern cities, no ff.; steamship lines, 114, 117, 122; Southern ex- pectations of effect of secession on, 1 88, 249 New York Herald, on Southern Com- mercial Convention, 144; on econo- mic effects of secession, 192; repre- sents business interests, friendly to South, 209; on causes of secession, 254 New York Times, on causes of secession, 253; opposes Morrill Tariff, 264 Non-intercourse with North discussed, 157-58, 175-76 Non-slaveholding whites, attitude toward slavery and slaveholders, u, 53-54, 218-20, 223, 290; attitude toward secession, 239-43, 283-88; see also labor and poor whites Norfolk, direct trade convention, 18; advantages and aspirations, 96; yel- low fever, H2n.; proposed steamship lines, 116 ff.; and secession, 275, 285 North, advantages of union with South, 20 ff., 46, 48-49, 80 fF., 94-96, 104, 115, 182, 1 88, 190-91, 196-97, 207-10; North and South compared, 24, 33, 47-49, 205-6, 227-29; imports from South, 12, 108, 190; exports to South, 12, 24, 109, 190; commercial policy of Confederacy toward North con- sidered by disunionists, 181, 183-84; formulated, 258-59, 261, 263, 265-67; relations of East and West and East and South compared, 186, 202; effects of secession on North considered, 1 88, 190-92, 194, 208, 235, 248-49, 253; class of Northerners encourage disunionists, 189-92; Northern opin- ions of disunionist sentiment in South, 195-98; Northern views of causes of secession, 252-54; see also capital, commerce, manufactures, tariff North Carolina, little interest in direct trade in 18305, 31; agricultural de- pression, 34; growth of cotton manu- factures, 41, 44, 227; disunion senti- ment, 73, 74, 79n.; disunion argu- ments refuted, 88; people regret com- mercial dependence on Virginia and South Carolina, 97; tariff and dis- criminatory taxation questions, 161- 62; state aid to railroad, 172-73; agricultural conditions, 203; ad valo- rem issue, 219, 287; sectionalism, 220, 287; secession defeated, 233; consider- ations affecting final decision for secession, 273-75, 276, 283n., 284, 287 Northerners and foreigners in South, as merchants, factors, etc., 19, 28, 198; in New Orleans and Mobile, 31; attitude toward slavery, 57, 220; merchants in cities and towns, 99-100 Nullifiers, in direct trade conventions, 17; on causes of commercial de- pendence, 22; origin, 65; party affili- ations, 66; political principles 67-68; become disunionists, 68-72, 88-92; not satisfied by Tariff of 1846, 70, 162; for free trade and direct taxa- tion, 163-65; see also Democratic party Olmsted, F. L., on Southern imports, 108; on domestic slave trade, 211; and white labor in cotton industry, 221 Pacific railroad, 14, 94, 97, 290, 293; conventions at Memphis, St. Louis, and Philadelphia, 126; becomes sec- tional issue, 127, 135; considered in Southern Commercial Convention, 130, 132-36, 138, 139, 148; and rail- road across Tehuantepec, 132; and Gadsden Purchase, 135; disunionists consider, 181; Texas interested, 262; and secession in Missouri, 280 Panic, of 1837, 16; specie payments sus- pended, 27; general stagnation of business, 30, 93; in Southwest, 31; effects of panic of 1857, 102-4, J 99 South weathers better than North, 205 322 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM-, 1 840-l86l [322 Patronage of home manufacturers and merchants urged, 27 f., 63, 113, 142, 173-75, 255 Pettigru, J. J., Unionist in South Caro- lina (1850), 89; opposes foreign slave trade, 217-18, 222, 224 Pike, Albert, plan for Pacific railroad, 134-36, 138, 139 Polk, James K., Kane Letter, 38, 162; vetoes Rivers and Harbors bill, 125 Poor whites, employment in cotton fac- tories considered, 41, 42, 52-54; tried, 42, 62; character and numbers, 51-52; responsibility of slavery for, 53, 198, 223, 290; consumed few imports, 107; production of cotton by considered, 212, 221 Population of South, sparsity, 13, 292; growing disparity in favor of North, 15, '6, 55, 57, 98, 128, 217, 229, 289; increase, 203, 211 Presidential elections, of 1856, 138, 179; of 1860, 181, 231, 234-36, 238 Preston, Wm. Ballard, to Europe in in- terest of direct trade, 120; on Virginia as slave selling state, 224 Progress of Slavery, by Weston, 197-98 Pryor, Roger A., on fishing bounties, 164; disunionist in Congress, 180; opposes revival of slave trade, 218, 224 Public opinion, conditions of formation in South, 293-94; m North, 294 Quitman, John A., leader Southern Rights Party in Mississippi, 77; Nulli- fier, 91; in Southern Commercial Con- vention, 131, 148; disunionist in Congress, 180 Railroads in South, anticipated ad- vantages from railroads to West, 29, 115, 125, 130, 185, 269, 290; projects for and direct trade, 29, 114; being rapidly built, 30, 94; New Orleans roads, 97, 194; economically built, 102, 225; building handicapped by lack of capital, 104; traffic light, in, 225; Virginia and Tennessee, 114, 276; Chesapeake and Ohio, 115, 277; projects considered in Southwestern Convention, 125; in New Orleans railroad conventions, 127; in South- ern Commercial Convention, 132, 147; Baltimore and Ohio, 130, 277; state aid, 172-73; railroads to West and secession, 185, 269; progress, 203, 225-26, 229; see also Pacific railroad Republicans, Southern attitude, 138, 179, 181, 234; and economics of slavery, 196-98; attitude toward dis- union movement, 196-98; on causes of secession, 252-53 Retaliation, commercial, against North, see non-intercourse and taxation, dis- criminatory Rhett, R. B., leads Bluffton movement, 38; on Tariff of 1842, 39; disunion speech in Senate, 83-84, 244; leads separate-actionists (1850-52), 89; on state protection of industry, 156; opposes slave trade agitation, 2i6n.; "Address of the People of South Carolina," 243-44; and revenue pro- visions of Confederate Constitution, 261; and tariff and foreign policies of Confederacy, 265 Richmond, direct trade convention, 18; aspirations, 96; mercantile conven- tion, 116-17; ships flour to Rio de Janeiro, 117; Southern Commercial Convention, 137-38; industrial town, 229; and secession, 275, 285 Richmond Enquirer, on diversification of industry, 49, 155; on Southern Commercial Convention, 148; dis- criminatory taxation, 159; disunion- ist organ, 1 80 Richmond Whig, 42; on disunionism in South Carolina (1850), 85-86; wavers on tariff, 162 Rivers and Harbors Convention (Chi- cago)i 125-26 Robb, James, refutes disunionist argu- ments, 194 Ruffin, Edmund, 18; Calhoun Demo- crat, 92; in Southern Commercial Convention, 143; on economic bene- fits of secession, 187-89 Russell, Robert, on Southern opinion, 108; on plantation economy, 202; on white labor in cotton industry, 221; on Southern attitude toward English opinion, 224 St. Louis, Pacific railroad convention, 126; and secession, 251, 276, 279, 280, 286 Savannah, aspirations, 97; Northerners and foreigners, 100; Southern Com- mercial Convention, 138-40; direct trade projects, 256 Savannah Daily Republican, on South- ern Commercial Convention, 138; and value of Union, 192; opposes revival of slave trade, 214 323] INDEX 323 Seabrook, W. B., Governor of South Carolina, and secession movement, 73-74; and state aid to manufactures, 155, 161 Secession movement, attitude of diver- sificationists, 58; disunionist views of economic value of Union, 68-69, 7 2 ; Bluffton movement and, 69-70; growth of disunion sentiment, 70-73; Nashville Convention and, 73-76; contests over acceptance of compro- mise of 1850, 76-77; disunionist agru- ments, 77-88; secessionists (in 1850) identified, 88-92; disunionists in Southern Commercial Convention, 137-44. 149-50. 179; George Fitzhugh and, 177; growth of disunion senti- ment, 179; methods of propagating, 1 80; issue sought, 181; every aspect considered, 181-82; various motives, 182; economic arguments for seces- sion, 182-89, 291, 293; class of North- ern writers encourages disunionism, 189-92; secessionists refuted in South, 192-95; Northern opinions of move- ment, 195-98; secessionists agitate slave trade question, 213-14, 216, 270; secession of cotton states, 231- 33; secession delayed in border states, 233; arguments of secessionists, 234- 35, 236-38; of Unionists, 235-36, 237; secessionists identified, 238-43; state- ments of causes, 243-48; expecta- tions of economic benefits, 248-49; border state views of causes, 249-52; Northern views, 252-54; causes as shown by economic policies of Con- federacy, 255-70; desire to reopen slave trade not the cause, 270-72; considerations affecting decision of border states, 273-88, 291; secession- ists identified in, 283-86 Sectionialism, in Albama, 220, 232, 241; in Tennessee, Virginia, and North Carolina, 220, 277, 287 Seward, W. H., effects of secession on North, 196; on causes of secession, 252 Shipping and shipbuilding in South 12, 16, 25, 147, 227; Louisiana bonus, 170 Slavery, basis of sectionalism, n, 13; question little discussed in direct trade conventions, 30; as cause of Southern "decline," 47, 196-98, 290- 92; responsibility for poor whites, 53, 198, 223, 292; hostility toward in South, 53-54, 218-20, 223, 286-88; quarrels over augment interest in manufactures, commerce, etc., 55-58, 98; struggles over cause growth of disunion sentiment, 68, 71-76, 179, 182, 195, 197; Southern defense, 68, 72, 98, 176, 206-10, 290; quarrel reaches bitter stage, 128; leads to threats of commercial retaliation, 157-61, 169-70, 175; West becoming hostile, 187; attitude of Northern business interests, 189-92, 196, 209- 10; fears for as cause of secession, 234-36, 239-48, 250, 254, 269, 273, 281, 283-86, 291; in Confederate Constitution, 269 Slaves, distribution, ii; employment in factories suggested, 41, 54-55; tried, 55, 62, 210, 222; redundancy of labor, 55, 210; considered necessary to cot- ton industry, 207, 290; prices rise, 210; shift to black belts, 210-11; foreign slave trade revived, 211, 215; demand outrunning supply, 212, 220 ff. Slave trade, movement to reopen the foreign, discussed in Southern Com- mercial Convention, 139, 141, 143-44, 150, 213-15; disunionists and the agitation, 181; origin and develop- ment of movement, 212-16; motives and arguments of advocates and op- ponents, 216-24; attitude of border states, 224; strength of movement, 224-25; desire to reopen as cause of secession, 348, 250-51, 253, 270-72; fears of revival delay secession of border states, 280 Smith, Hamilton, advocates manufact- ures in Ohio valley, 43-46; suggests export duty on cotton, 154 South Carolina, distress in agriculture, 34, 36, 41; agitation in behalf of manufactures, 37 ff.; Bluffton move- ment, 37-40, 69-70; hostility of white labor to slaves, 53, 219; nullification in, 65; party divisions, 66 f.; disunion movement (1849-52), 72-74, 76, 77, 82-85, 89; question of aid to manu- factures, 155; discriminatory tax- ation, 156, 160; and tariff, 166; aid to railroads, 172; agriculture, 203; and revival of slave trade, 213, 215, 217, 225; manufactures, 227; secession, 231, 239, 243-45, 250-51; projects for direct trade, 256; and Confederate Constitution, 262, 269, 271 Southern Commercial Convention, ori- gin, 123-29; objects and proceedings, 324 ECONOMIC ASPECTS OF SOUTHERN SECTIONALISM, 1 84O-l86l [324 129-44, 119-20, 162, 163, 167-68, 173, 174, 178; composition, 142, 144; reasons for changes in objects and personnel, 144-48; achievements and results, 134, 140, 145, 146, 148-50; a criticism of, 174; and growth of dis- unionism, 179, 180; considers revival of foreign slave trade, 213-24, passim Southern rights associations, 77; Central of Virginia, 117, 158; for measures to promote commercial independence, I S9> l &9'i attacks Virginia tax sys- tem, 169; associations in Virginia, 158; in Albama, 160 Southern Rights party, 78, 86, 179; in Georgia, 76, 89; in Mississippi, 77, 90, 160; in Alabama, 77, 90 Southern Wealth and Northern Profits, 190-92, 254 Southwestern Convention, Memphis, on overproduction of cotton, 37; com- position and proceedings, 124-26 Spratt, L. W., advocates reopening foreign slave trade, 213, 215, 218, 220, 222n., 223; and causes of secession, 244, 248; on boundaries of Confeder- acy, 268; against interdiction of slave trade, 271 Steamship lines, advantages over sail, 114; Federal government subsidizes, 114; Southern requests for subsidies, 115, 116, 117, 121, 142; Virginia's interest in, 115; Thompson's pro- jects, 116-17; projects in South Caro- lina and Alabama, 118; to Amazon, proposed, 118; Mann's Steam Ferry project, 119-20, 139, 141, 257; later Virginia projects, 120-21; later pro- jects elsewhere, 121-22; considered in Southern Commercial Convention, 130-33, 139, 141-42; government sub- sidies discontinued, 164; projects after secession, 256-57 Stephens, A. H., in direct trade conven- tion, 17; against secession (1850), 77; attributes prosperity to Union, 193; compares Georgia and Ohio, 206; on foreign slave trade, 217; Union Speech, 237; "Corner Stone" speech, 246 f., 269; on effects of secession, 249; and revenue provision of Con- federate Constitution, 262; on tariff policies of Confederacy, 264; and three-fifths clause, 270 Sugar industry, condition of, 200 Tariff acts (United States), Tariff of 1842 and Bluffton movement, 37-40; Tariff of 1846 and cotton manufac- tures, 60; nullification in South Caro- lina, 65-66; Tariff of 1846 doesn't satisfy Nullifiers, 70; attitude of South (1828-50), 151-56; tariff senti- ment falls off, 161-62; free trade and direct taxation agitated, 139, 141, 162-64; South and Tariff of 1857, 163- 64; and Morrill bill, 165, 254; South- ern attitude summarized, 88; see also taxation and disbursements Tariff policy of Confederacy, anticipa- tions of disunionists, 181, 183-84, 185, 1 88, 189, 243, 245; considerations affecting policy of Confederacy, 255, 259, 267; policies of individual states after secession, 257-58; export duties proposed, 260; provisions of Provis- ional Constitution, 260; tariff acts of Provisional Congress, 260-61; pro- visions of Permanent Constitution, 261-62; Tariff of May 17, 1861, 262- 63; tariff and diplomacy, 264-67; pro- tectionist sentiment, 266-67; effect upon decision of border states, 274-75 Taxation, systems in Southern states and cities criticized, 28, 168-70; dis- criminatory taxation of indirect im- ports proposed, 114, 117; Toombs's plan, 139, 168; discriminatory taxation of Northern manufactures proposed, 142, 156-57; discriminatory taxation in Southern states, 156; discrimin- atory taxation considered during crisis of 1850, 159-61; policy under advise- ment to secession, 167-70; why dis- crimination not resorted to, 171-72; George Fitzhugh on, 177 Taxation and disbursements of Federal government, Southern "decline" at- tributed to inequality of, 22, 67-68, 80-88, passim, 289, 292; tonnage duties, ship subsidies, fishing boun- ties, etc. attacked, 133, 164, 166; free trade and direct taxation agitated, 139, 141, 162-64; South Carolina view prevails, 182-83, 197, 291; in- equality of as cause for secession, 237, 243-54, passim, 291; see also tariff acts (United States) Tennessee, disunionists in, 73, 75, 79n.; tariff sentiment, 151, 166; aid to rail- roads, 172; conditions of agriculture, 203; political divisions based on slavery, 220; secession delayed, 233; considerations affecting decision to secede, 274, 278, 283, 284; sectional- ism and secession, 287 325] INDEX 325 Texas, "Texas or disunion," 38, 69; aid to railroads, 172; agriculture, 202- 3; and foreign slave trade, 225; se- cession, 232, 245 Thornwell, Dr. J. H., on causes of se- cession, 248 Tobacco, foreign duties on, 142, 189, 200; industry prosperous, 199; manu- factures of, 228 Toombs, Robert, Unionist (1850), 77; letter on discriminiatory taxation, 139, 167; and secession, 237, 240, 245; effects of secession, 249; on tariff and foreign policies of Confederacy, 266; on admitting new states, 269^ Townsend, John, on benefits of seces- sion, 83, 191 Tucker, J. Randolph, on benefits of secession to Virginia, 274, 275, 281 Unionists in South, advocate diversi- fication of industry, 58, 85, 87, 179; in South Carolina, 65-66; and Nash- ville Convention, 75; Union party (in 1850), 76-77, 89-90; refute seces- sionist arguments, 85-88, 192-95; oppose discriminatory taxation, 171; oppose agitation of slave trade ques- tion, 216; opposition to secession in 1861, 231-33; their arguments, 235- 36, 237; identified, in cotton states, 238-43; arguments and motives in border states, 273-83, passim, 286- 88, 291; identified in border states, 283-85 Virginia, commerce, 19, 20, 95; banking capital question, 24, 27; depression in manufactures, 6on.; secession senti- ment (1850), 73, 88, 91; projects for steamship lines to Europe, 114-18, 119-21; tariff sentiment, 151, 160; commercial retaliation and discrimi- natory taxation discussed, 156, 158- 60, 168-70; aid to railroads, 172-73; agriculture, 203; and domestic slave trade, 224; secession delayed, 233; considerations affecting decision to secede, 274-78, 281-83, 285, 287; sectionalism, 220, 277, 287 Warehousing system, 93, 125 West, agricultural depression, 34; in- terest in cotton manufactures, 43; political alliance with South, 55, 124-25, 209; trade between South and, 108-9, J 86, 201-3, 207; effects of secession upon relations of West and South considered, 185-86, 189, 258, 263, 268, 280 Weston, George M., on disunion move- ment, 197 f. Whig party in South, state rights ele- ment, 66; attitude toward secession (1850), 74, 76-77, 89-92; and diversi- fication of industry, 87, 152; and slaveholding, 92; and Southern Com- mercial Convention, 147; attitude on tariff, 151-54, 161-62; and corpor- ations, 154; and discriminatory tax- ation, 159; and state aid to railroads, 173; begins to dissolve, 179; attitude toward secession, 238-43, 284-86 Wilmington, North Carolina, aspira- tions, 97; improvement of harbor, 1 13; for secession, 284 Wise, Henry A., Calhoun Democrat, 92; on future of Norfolk, 96; and de- velopment of Virginia, 176 Yancey, W. L., Calhoun Democrat and disunionist, 90; in Southern Com- mercial Convention, 143; advocates disunion, 180; appeals to Northern business interests, 209; on foreign slave trade, 2i6n., 218, 224; on eco- nomic benefits of secession, 237; on commercial policy of Confederacy, 259; commissioner to Europe, 264- 66; on slave trade provision of Con- federate Constitution, 28 in. 30112084204384 ,;J& asffi: