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- Subject: HIST:How Capitalists Rule/Pt.6
- Message-ID: <1992Jul28.034948.18871@mont.cs.missouri.edu>
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- Date: Tue, 28 Jul 1992 03:49:48 GMT
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- Via The NY Transfer News Service ~ All the News that Doesn't Fit
-
- How Capitalists Rule.../Part 6
-
- The Democrats and Republicans:
-
- After the Civil War, an uncivil peace
-
- By Vince Copeland
-
-
- Grant and the gold
-
- The super-capitalist orientation of President Ulysses S. Grant,
- along with the corruption of his administration, cannot be
- overestimated. It was part and parcel of the hey-day of capitalist
- expansion over which he presided. By the time of the election of
- 1872, Grant had disgraced himself with a large number of the white
- Radicals who had supported him four years earlier.
-
- He was implicated in the biggest gold swindle of the day, in which
- his brother-in-law, together with financiers Jay Gould and Jim
- Fiske, brought on the famous Black Friday financial crisis by
- trying to buy up all the gold in the United States (outside the
- Treasury).
-
- They had put Grant's wife in for $500,000 and her brother for $1.5
- million. Another million was to go to the assistant treasurer of
- the United States, who was head of the Subtreasury in New York. The
- plan only fell through because bigger capitalists than Gould and
- Fiske, plus a number of smaller capitalists, brought pressure on
- Grant to cool the whole thing and release gold from the Treasury to
- depress the price.
-
- The Republican soldier-president became a close buddy of the Astors
- and the Vanderbilts, the two richest families in the United States.
- They in turn were deeply involved with "Boss Tweed" of New York
- City, a Democrat--until they found him too expensive and sent him
- to jail.
-
- A.T. Stewart, a $40-million dry goods king and another former
- Democrat, convinced a group of capitalists to furnish a mansion for
- Grant in Philadelphia and to give him $100,000 to pay off the
- mortgage on his Washington home. The banker August Belmont, still
- a Democrat, was also in on this deal.
-
- After leaving the presidency, Grant tried his hand as a Wall Street
- broker. But after fumbling several golden opportunities, Grant
- appeared before William H. Vanderbilt in 1884 for a loan. He
- immediately received $150,000. (The Vanderbilts had refused to pay
- $2 a day to the railroad workers.)
-
- Of course, all these peccadillos of Grant and his intimates pale
- before the wild debauch of the public Treasury and theft of public
- lands by the unleashed capitalist class itself.
-
- As for the Democrats, they ran Horatio Seymour, governor of New
- York State, for president in 1868. Seymour was not only a vicious
- racist, but a thinly disguised advocate of a return to the slave
- system. He led a fight to repeal the ratification of the 14th
- Amendment in the New York State Legislature. But he was the last
- prominent Democrat to openly advocate slavery, at least in the
- North.
-
- The Republican split
-
- The election of 1872 found Grant still defending the general policy
- of Radical Reconstruction, even while Reconstruction was being
- eroded in some of the Southern states because it was not radical
- enough.
-
- Right in the middle of Reconstruction, during the Grant
- administration, there was a split in the Republican Party. It came
- from an unexpected quarter.
-
- The split faction, which called itself the Liberal Republicans, was
- led by some of the same Northern whites who had been most radical
- in the fight against slavery, like Senator Charles Sumner and
- Horace Greeley, editor of the New York Tribune. However, where they
- had been militant and intransigent, they now became tepid and
- compromising. All their militancy was directed against the Money
- Power instead of the Slave Power.
-
- But this was just at the point when the money power--the biggest
- capitalists--were coming over, however temporarily and insincerely,
- to the cause of Black Freedom. While earlier these capitalists went
- to war out of the need to subjugate the big planters, now they were
- impelled by their alliance with the radical middle class of the
- North.
-
- This class, which really had led the revolution, at least among the
- white masses, was now being superseded politically by the same
- class that had compromised most with the white rulers of the South
- before the Civil War. (Naturally, there were many individual
- holdouts who remained loyal to the Black struggle, but their
- political power was now being extinguished.)
-
- Sumner, Greeley and their colleagues were outraged by Grant's
- closeness to the money power in New York. The money merchants in
- turn were now moving into bigger and bigger fields, including the
- drive to control the sugar islands in the Caribbean as well as
- railroad land in the West and steel plants in the eastern and
- midwestern parts of the United States.
-
- Before the Civil War any incursions into the Caribbean would have
- benefited the Slave Power rather than the capitalists. But the
- defeat of the slavocracy unleashed a big Northern drive for
- expansion in this direction. And by this time the banks were
- becoming direct investors in sugar plantations on the islands.
- Modern imperialism was embarking on its first adventures in
- overseas conquest.
-
- Significantly, Sumner's first break with Grant came when the latter
- attempted to take over Santo Domingo. But this early opposition to
- modern imperialism was motivated by the interests of small capital
- and small farm competition much more than by any proletarian
- opposition to the power of the big exploiters.
-
- It could be said that the beginnings of monopoly and U.S.
- imperialism were already showing themselves and hurting the upper
- middle class of both North and South.
-
- The Liberal Republicans, in order to get support in the South,
- began to advocate the end of Reconstruction and the removal of
- Union troops from the South--all with the condition that the
- Southern bourbons pledge their "honor" not to reimpose oppression
- and slavery.
-
- The election of 1872
-
- After an enormous amount of research for his book "Black
- Reconstruction," the great African American scholar W.E.B. Dubois
- thought that by 1872 the leadership of both the big parties,
- Republican and Democrat, was chiefly controlled by Wall Street and
- that the Dixie component was now definitely subordinate to the
- bankers and industrial bosses.
-
- Wall Street's takeover of the Democrats, and even of the
- Republicans, was consummated not by a mere infusion of money but
- was the result of a conflict of social forces and involved the
- struggles of thousands, even millions, of people, white and Black.
-
- The leaders of the Liberal Republicans, some of them with long and
- honorable records in the fight against slavery, much predating that
- of Grant and infinitely longer than Wall Street's, were in one
- sense being perfectly consistent. Being upper middle class, with no
- social roots among the still impoverished Black population, they
- felt the depredations of Wall Street (which they had always fought
- against before the Civil War) and the oppression of the railroads
- over the independent farmers and small business of the North and
- South.
-
- And they felt this more keenly than they felt the still smoldering
- and rekindling fury of the Ku Klux Klan that was directed against
- the African American masses.
-
- The same white middle class in the South had joined the Republican
- Party after the war, because they had their own grievances against
- the plantation lords. But in a short time this class in the South
- was even more directly oppressed by the railroads (Northern owned)
- and bankers (New York centered) and that section of Northern carpet
- baggers who elbowed them out of business. (And this corresponded
- closely to the position of the big plantation lords, too.) The
- economic bond with their Northern cousins became clear.
-
- Net result of Liberal split
-
- Thus the Liberal Republican Party could be called the White
- Republicans as opposed to the "Black" Republicans (most of whom
- were white, as we explained earlier). But the real difference was
- this: the Liberals were a middle class party while the official
- Republicans were a capitalist party which had suddenly seen the
- light and was temporarily allied with the Black poor in its drive
- to shave the old Southern rulers down to a size and power
- compatible with the big Northern capitalists ruling the country.
-
- The net result of the establishment of the Liberal Republicans in
- the South was of course to leave the official Republican Party
- nearly all Black in that area and to leave the Black people more
- exposed to the cruel vengeance of the Democratic plantation owners.
-
- The Liberal Republicans demanded all kinds of progressive reforms
- in the national government, including restraints on the Wall Street
- banks and railroad companies, and so on.
-
- But in keeping with their new alliance in the South, they also
- demanded amnesty for all Confederate generals, governors and other
- leaders of the slave holders' rebellion, since those officials came
- directly from the same class that was leading the new party.
-
- This was done in the name of "good government," of ending the rule
- of the evil "carpet baggers" and ending corruption in government.
- Some of these leaders, no doubt, were taken in by the propaganda
- about "Black supremacy" and Black rule of the Southern legislatures
- and were frightened away from Reconstruction. In fact, only in
- South Carolina had Black representation even approached a majority.
-
- The Democratic maneuver
-
- The real essence of the new alliance was made clear by the fact
- that the Democratic Party decided to support the Liberal
- Republicans in the presidential election. And this support was
- accepted. Thus the formerly left Radicals were uniting with their
- most deadly wartime opponents. It was a bloc with the right against
- the center.
-
- That is, the anti-Wall Street cries coming out of the South,
- however genuine and desperate, were then and for a long time
- afterward orchestrated by the extreme right wing in the Democratic
- Party.
-
- The Liberal Republican program did ask for equal voting rights for
- Black people. And probably very few in the Northern wing of the
- party realized that an end to Reconstruction, which they were
- really advocating, would be in reality an end to all Black Freedom,
- falling short only of an actual return to chattel slavery.
-
- They thought they could simultaneously restore all privileges for
- the defeated masters while still protecting the civil rights of the
- masters' victims. They consoled themselves with the notion that
- juridical freedom for the Blacks was real freedom. But on the other
- hand, they wanted to remove the juridical restraints on the former
- masters who already had the de facto freedom of landed wealth.
-
- Horace Greeley
-
- The presidential candidate of both the Liberal Republicans and the
- Democrats in 1872 was none other than Horace Greeley. He had been
- the most prominent organizer of the Republican Party and had been
- considered a true Radical.
-
- He had a hundred epithets for the Democrats in his newspaper, the
- New York Tribune. And after William Lloyd Garrison and Wendell
- Phillips, he was probably the most famous anti-slavery agitator. If
- he had shown his face in any Southern town five years earlier, he
- would most likely have been lynched.
-
- But now the old Democratic Party, formerly run by the Southern
- slave masters, backed the Liberal Republicans and supported Greeley
- for president.
-
- The old Northern Radicals in the Republican split-off gave the new
- Democratic Party some moral authority. Greeley, unwittingly and
- almost unwillingly, made this official. This ex-Radical,
- ex-socialist, ex-high protectionist (for tariffs) and almost
- "ex-Greeley" was calling for amnesty for the last Confederate
- holdouts!
-
- The Democratic Party was still considered in many quarters to be
- the party of slavery, treason and counter-revolution. The Liberals
- lasted just long enough to wipe off some of this tarnish from the
- Democrats in the course of the 1872 alliance, but not long enough
- to acquire any lasting credibility for themselves. (Greeley had a
- mental breakdown and died a few days after the election, which, of
- course, he had lost.)
-
- Next: The Great Betrayal of 1876-77
-
- -30-
-
- (Copyright Workers World Service: Permission to reprint granted if
- source is cited. For more info contact Workers World,46 W. 21 St.,
- New York, NY 10010; "workers@cdp!igc.org".)
-
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