Salmon P. Chase – The Intelligent Collector Magazine

John Wilkes Booth’s heinous act took away more than a beloved president

A wanted poster for co-conspirators John Wilkes Booth, Mary Surratt, David Herold sold for $47,800 at a May 2011 Heritage auction.

By Jim O’Neal

At some point when John Wilkes Booth was planning to assassinate President Abraham Lincoln, he must have decided that it would be more impactful to decapitate the primary leadership of the North and expand the hit list to include Vice President Andrew Johnson, Secretary of State William Seward and, perhaps, even General Ulysses S. Grant. After all, they were in Washington, D.C., and unprotected. It was a desperate move, but it might bolster the morale of the South. In the end, it failed because of a series of unrelated circumstances.

General Grant had declined the invitation of the president to attend a theater show because there was an eagerness to return home and resume normal life. However, that would still leave Secretary Seward, who was at home recuperating from a serious carriage accident that required medical attention. Vice President Johnson had already booked a room that night in the Kirkwood Hotel. Both men would be relatively easy targets for Booth’s co-conspirators.

Lewis Powell, the man assigned to kill Seward, had a clever plan to act like a delivery boy bringing medicine, enter the house and shoot the bedridden Seward. He did manage to stab Seward in the throat, but a metal splint on his jaw deflected most of the blows. Powell ran from the house, was easily captured and later hanged. The other conspirator, George Atzerodt, managed to book a room at the Kirkwood Hotel, but started drinking at the hotel bar, lost his nerve and fled. He was also captured and hanged. That only left Lincoln, and Booth shot him in the theater as he watched “Our American Cousin” with Mary by his side.

The date was April 14, 1865. The location was Ford’s Theatre.

Lincoln had won the 1860 presidential election by defeating three opponents. One was Senator Stephen A. Douglas, a Democrat from Kentucky who had helped Lincoln gain national prominence through a series of high-profile debates regarding slavery. (Douglas, coincidentally, died just two months after Lincoln was inaugurated). A second Democratic opponent was John C. Breckinridge – the incumbent vice president for James Buchanan. The third – John Bell – was the Tennessee Senator who ran as the candidate for the Constitutional Union Party, a group that was neutral on slavery but adamant that the Constitution be upheld. Lincoln’s 180 electoral votes were more than the other three combined.

Now it was four years later and President Lincoln was struggling to barely hang on. In June 1864, the prospects for the Union Army were equally dim. General Grant was bogged down in Virginia, General William Tecumseh Sherman was stalled before Atlanta and heavy casualties were shocking people back home. There was even talk about suspending or postponing the election due to the national crisis. But, as President Lincoln pointed out, “We cannot have free government without elections. If this rebellion forces us to forego a national election, it will appear we’re conquered and ruin us.”

We all now know that the 1864 election did go ahead as planned. It was the first time any nation held a general election during a major domestic war.

However, President Lincoln took a pounding in the press. Horace Greeley, founder-editor of the New-York Tribune, claimed “Mr. Lincoln is already beaten!” The influential James Gordon Bennett, founder-publisher of the New York Herald, was more direct: “Lincoln is a joke!” Some wanted to run Treasury Secretary Salmon P. Chase and some were clamoring for General Grant. Even Thurlow Weed, Lincoln’s advisor, told him his re-election was hopeless.

Just when it seemed that Lincoln had reconciled himself to defeat, military actions started to slowly improve. Admiral David Farragut (who was the first rear admiral, first vice admiral and first full admiral in the U.S. Navy) won a great victory at the Battle of Mobile Bay (admonishing his men to “Damn the torpedoes, full speed ahead”). General Sherman took Atlanta and began his famous “March to the Sea,” which culminated in the burning of Charleston, S.C., where the war had begun. Meanwhile, General Philip Sheridan was routing Southern troops in the valleys of Virginia and then devastating the surrounding areas.

Virtually all of Lincoln’s critics were muffled by these turns of events.

Abraham Lincoln and Andrew Johnson won the 1864 election and the Civil War in 1865. But, the country’s troubles were not over. After Lincoln was assassinated, Vice President Johnson became president and was unable to work with the Republican Congress, which had devised a trap to impeach him. He was acquitted, but lost any hope for governing. He went home a chastened man.

In 1875, he did manage to get re-elected to the U.S. Senate … the only man to do so (up to 2020).

John Wilkes Booth did much more damage than just assassinating a president. By killing Lincoln, he eliminated possibly the only man who could have restored harmony, implemented reconstruction and unified us as our founding documents intended.

Nearly 160 years later, we are still waiting for another messiah.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Civil War question: What were these men thinking?

This albumen print of a Union encampment, most likely of the 110th Pennsylvania Volunteer Infantry, sold for $2,868 at a November 2008 Heritage auction.

By Jim O’Neal

The last truly great Civil War book I read was Doris Kearns Goodwin’s Team of Rivals: The Political Genius of Abraham Lincoln (2005). The award-winning book focuses on the 1860 presidential election and how underdog Lincoln was able to secure the Republican nomination against three formidable opponents, and then win the presidency without a single Southern vote (he was not on any Southern ballot).

Then, it deftly explains how President Lincoln was able to recruit all three Republican opponents to serve as key members of his Cabinet: New York Senator William H. Seward (Secretary of State), Ohio Governor Salmon P. Chase (Treasury Secretary), and Missouri’s favorite son Edward Bates (Attorney General). Next was the brilliant way he managed to leverage each man’s strength and weakness into a form of political-enemy synergy.

Steven Spielberg secured the film rights before the book was written and his 2012 movie Lincoln was highly acclaimed. Out of 14 Oscar nominations, Daniel-Day Lewis won for Best Actor. But the movie was really only about the last four months of Lincoln’s life when he maneuvered to get the 14th Amendment approved. Neither the book nor film spends much time on the Confederacy or the underlying circumstances that made the Civil War inevitable.

This is not unusual, since books about Lincoln, his Cabinet and the generals of the war pop up with regularity. Relatively little has been written about the Confederacy per se (i.e. the formal government of the South). The primary focus seems confined to biographies of Robert E. Lee, Thomas “Stonewall” Jackson or the famous battles between the North and South (such as Gettysburg).

Sure, people might know that Jefferson Davis was president of the CSA or that Alexander H. Stephens was vice president. But these two men were in office the entire war, from April 1861 to May 1865. Perhaps interest in individuals is limited because, as some historians argue, the Confederate States of America represented an entire people’s effort to cling to their past. They feared after the 1860 election that Lincoln and the now-dominant Republicans would simply force them to abandon the practice of slavery. So they naively decided to secede from the Union and start their own country.

They started with seven secessionist slave-holding states and in February 1861 established a new Confederacy in Montgomery, Ala., before Lincoln even took office. After Confederates fired on Fort Sumter in April, four more states seceded and joined the Confederacy (now based in Richmond, Va.). Missouri and Kentucky were later accepted but did not secede. Two seats in the Confederate Congress were given to Southern California.

Organizationally, the Southern government was much like the North. They had a Constitution and a Cabinet with six departments that composed the executive branch. With few exceptions, they replicated their counterparts in the Union. A prominent exception: the Attorney General was elevated to Cabinet status. It grew in importance since the Confederacy had no Supreme Court; the Department of Justice arbitrated any legislation or constitutional disputes.

However, most departments discovered their limitations once the War started. The Navy began the war without a single major vessel and soon lost easy access to international sea-lanes from Southern ports. The Treasury and War departments did not have the resources of their Union counterparts, little things like enough money or an army and a non-industrial economy. Here, one must ask: Who were these men and what were they thinking?

Some deep thinkers sincerely believe it was an honest attempt to build a New South with 11 individual states forging a future based on prosperity from land and slaves. After all, only 4 percent to 5 percent had direct involvement with the institution of slavery. The majority considered their way of life inviolate enough to defend it by force of arms. However, despite obvious mismatches from virtually every aspect, that did not deter its political leaders. They assured the Southern people that courage and determination could substitute for limited resources, limited manpower and lack of foreign aid.

The South’s goal of independence was as absolute as the North’s determination to maintain the Union. Hence, the objectives of the opposing governments could be neither compromised nor harmonized. The Civil War would have to be a fight to the finish.

For four long years, against impossible odds, the South persevered and suffered. It accepted honorable defeat and then wrapped itself in nostalgia. The South’s postwar vision of “The Lost Cause” – fighting and surrendering with honor – became a soothing balm for the sores of war.

However, President Jefferson Davis would admit much later, “The simple fact was the people had gone to war without considering the cost.”

Case closed.

For North, Tariffs and Taxes to Fund War Gave Way to Printing Money

Series 1861 $10 Demand Notes were placed into circulation in 1862 and were among the first of U.S. Federal banknotes ever issued. This sample, graded PMG Very Fine 30 EPQ, sold for $381,875 at an August 2014 Heritage auction.

By Jim O’Neal

A follow-up to my previous post:

The North had a tough time raising money for the war as well. After the defeat at Bull Run, they suffered a new crisis: the collapse of the bond market. Under the Constitution, the U.S. House of Representatives had responsibilities for originating all revenue measures and under pressure from Treasury Secretary Salmon P. Chase started considering legislation to raise taxes. Ways and Means started with tariffs, but a storm of criticism erupted since it would fall on the poor who needed tea, coffee, sugar and whiskey.

The next option was real estate via “direct taxes,” but Congress objected by noting that wealth in stocks and bonds was excluded, which meant the wealthy could escape paying any taxes quite easily. The more Congress debated the property tax the louder the opposition became. U.S. Rep. Schuyler Colfax from Indiana (a future Republican vice president) said, “I cannot go home and tell my constituents I voted for a bill that would allow a man, a millionaire, who has put his entire property in stock, to be exempt from taxation, while a farmer who lives by his side must pay a tax!” Colfax proposed a tax on stocks, bonds, mortgages and interest on money – and income earned from them. An income tax (inevitably).

U.S. Rep. Thomas Edwards from New Hampshire proposed calling the new tax something other than a direct tax. “Why should we not impose the burdens which are to fall on this country equally, in proportion to their ability to pay them?” An amendment was passed imposing a 3 percent tax on incomes over $600 per year. Someone quoted John Milton in Paradise Lost – he compared the taxpayer to Adam and Eve, driven by necessity “from our untaxed garden, to rely upon the sweat of our brow for support.” An income tax it was.

Secretary Chase was skeptical. He doubted merely labelling the income tax to be indirect would not make it constitutional. More importantly, there were no provisions made for a bureaucratic or enforcement mechanism. The income tax was not collectible. Since it was only a recommendation, he ignored it since he was far too busy with the need to borrow money for the war. As banks were all reluctant to loan a shaky government any money, he turned to a young Philadelphia banker, Jay Cooke, who had a scheme to market the government debt to the public, with Cooke taking a sales commission.

They finally got a consortium of 39 banks to loan $150 million in gold to be paid in three $50 million installments for sale to private individuals. The first $50 million barely sold and the second round failed completely, which killed the scheme. By Dec. 30, 1861, the banks were so stressed they were forced to stop honoring gold payments to their other customers, which was almost tantamount to becoming insolvent.

By the start of 1862, Chase realized he had grossly underestimated the costs of the war. His new estimate for year one was $530 million and the assumed revenues from taxes, tariffs and other schemes were falling short and the Treasury funds were almost depleted. New taxes or loans could not possibly fill the gap in time. With no other alternatives available, Chase and President Lincoln overcame their misgivings and endorsed the idea of simply printing money – $50 million in green paper money that the government would just declare to be valid legal tender, though not redeemable in gold or silver.

Then Congress passed the Legal Tender Act in February 1862, providing for $150 million in currency that became known as greenbacks – the first paper money ever issued by the U.S. government … a practice that continues today as the debt has exceeded $20 trillion and seems to be accelerating. I hope to be around to see how it ends.

As Nation Moved to Civil War, the North had the Financial Edge

Richard Montgomery was an Irish soldier who served in the British Army before joining the Continental Army.

By Jim O’Neal

Richard Montgomery (1738-75) was a little-known hero-soldier born in Dublin, Ireland, who became a captain in the British Army in 1756. Later, he became a major general in the Continental Army after the Continental Congress elected George Washington as Commander in Chief of the Continental Army in June 1775. This position was created specifically to coordinate the military efforts of the 13 Colonies in the revolt against Great Britain.

Montgomery was killed in a failed attack on Quebec City led by General Benedict Arnold (before he defected). Montgomery was mourned in both Britain and America as his remains were interned at St. Paul’s Chapel in New York City.

A remarkably diverse group of schools, battleships and cities named in his honor remain yet today. Montgomery, Ala., is the capital and second-largest city in the state; it’s where Rosa Parks refused to give up her bus seat to a white passenger on Dec. 1, 1955, sparking the famous Montgomery bus boycott. Martin Luther King Jr. used Montgomery to great advantage in organizing the civil rights movement.

Montgomery was also the first capital of the Provisional Congress of the Confederate States when the first meeting was convened in February 1861. The first seven states that seceded from the United States had hastily selected representatives to visit the new Confederate capital. They arrived to find the hotels dirty, dusty roads, and noisy lobbyists overflowing in the statehouse. Montgomery was not prepared to host any large group, especially a large political convention.

Especially notable was that most of the South’s most talented men had already either joined the Army, the Cabinet or were headed for diplomatic assignments. By default, the least-talented legislators were given the responsibility of writing a Constitution, installing the new president (Jefferson Davis), and then authorizing a military force of up to 400,000 men. This conscription was for three years or the duration of the war. Like the North, virtually everyone was confident it would be a short, decisive battle.

Jefferson Davis was a well-known name, having distinguished himself in the Mexican War and serving as Secretary of War for President Franklin Pierce. Like many others, he downplayed the role of slavery in the war, seeing the battle as a long-overdue effort to overturn the exploitive economic system that was central to the North. In his view, the evidence was obvious. The North and South were like two different countries: one a growing industrial power and the other stuck in an agricultural system that had not evolved from 1800 when 80 percent of its labor force was on farms and plantations. The South now had only 18 percent of the industrial capacity and trending down.

That mediocre group of lawmakers at the first Confederate meeting was also tasked with the challenge of determining how to finance a war against a formidable enemy with vastly superior advantages in nearly every important aspect. Even new migrants were attracted to the North’s ever-expanding opportunities, as slave states fell further behind in manufacturing, canals, railroads and even conventional roads, all while the banking system became weaker.

Cotton production was a genuine bright spot for the South (at least for plantation owners), but ironically, it generated even more money for the North with its vast network of credit, warehousing, manufacturing and shipping companies. The North manufactured a dominant share of boots, shoes, cloth, pig iron and almost all the firearms … an ominous fact for people determined to fight a war. The South was forced to import foodstuffs in several regions. Southern politicians had spoken often of the need to build railroads and manufacturing, but these were rhetorical, empty words. Cotton had become the powerful narcotic that lulled them into complacency. Senator James Hammond of South Carolina summed it up neatly in his “Cotton is King” speech on March 4, 1858: “Who can doubt, that has looked at recent events, that cotton is supreme?”

Southerners sincerely believed that cotton would rescue them from the war and “after a few punches in the nose,” the North would gladly surrender.

One of those men was Christopher G. Memminger, who was selected as Confederate States Secretary of the Treasury and responsible for rounding up gold and silver to finance the needs of the Confederate States of America (CSA). A lawyer and member of the South Carolina legislature, he was also an expert on banking law. His first priority was for the Treasury to get cash and he started in New Orleans, the financial center of the South, by raiding the mint and customs house.

He assumed there would be at least enough gold to coin money and commissioned a design for a gold coin with the goddess of liberty seated, bearing a shield and a staff flanked by bales of cotton, sugar cane and tobacco. Before any denominations were finalized, it was discovered there was not enough gold available and the mint was closed in June.

This was followed by another nasty surprise: All the banks in the South possessed only $26 million in gold, silver and coins from Spain and France. No problem. Memminger estimated that cotton exports of $200 million would be enough to secure hundreds of millions in loans. Oops. President Lincoln had anticipated this and blockaded all the ports after Fort Sumter in April 1861. No cotton, no credit, no guns.

In God we trust. All others pay cash.

One small consolation was that his counterpart in the North, Salmon P. Chase, was also having trouble raising cash and had to resort to the dreaded income tax. However, both sides managed to keep killing each other for four long years, leaving a legacy of hate.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Johnson’s Battles with Congress Strengthened Office of the President

This sepia-toned photograph of Andrew Johnson, signed as president, sold for $3,346 at a June 2010 Heritage auction.

By Jim O’Neal

On the night President Abraham Lincoln was shot, John Wilkes Booth and his little band of assassins had also planned to kill Vice President Andrew Johnson and Secretary of State William Seward. Booth’s fantasy theory was that decapitating the North’s leadership would cause enough chaos to bring the Civil War to an end. Seward survived a brutal stabbing and Johnson’s assigned assassin, George Atzerodt, got cold feet at the last minute. Johnson had gone to bed at the Kirkwood hotel unharmed.

Awakened by a friend, Johnson rushed to Lincoln’s bedside until the president was declared dead. Johnson then returned to the hotel, where he was sworn in as the 17th president by Chief Justice Salmon P. Chase. The members of his Cabinet assembled in the hotel parlor, where he told them: “I feel incompetent to perform duties so important and responsible as those which have been so unexpectedly thrown upon me.”

Despite Johnson’s humble tone, he was actually a fearless, even reckless, fighter for what he believed in. As a result, he became embroiled in the bitterest intra-governmental conflict the nation had ever seen. Like Lincoln, he favored a “mild reconstruction,” in effect turning state governments over to white citizens, with only the main leaders of the Confederacy excluded. However, the Radical Republican leaders demanded “radical reconstruction,” enfranchising former slaves and barring most former Confederates from government.

Initially, Republicans were pleased with Johnson, mistaking him as weak and easier to control than Lincoln. They were confident he would support their plans for severe treatment of the defeated South. “By the Gods! There will be no trouble now in running the government,” declared Senator Benjamin Wade of Ohio. Two years later, this same man, now president pro tempore of the Senate, was so confident the Senate had the votes to evict Johnson from the White House that he had already written an inaugural speech and chosen his Cabinet!

But now, by the time Congress finally met in December 1865, the former states of the Confederacy had elected governors and state legislators. And although they approved the 13th Amendment outlawing slavery, they had also passed “Black Codes” binding ex-slaves to working the land. In his first annual message to Congress, Johnson railed against this situation, warning Congress of the dire consequences. But Northern Republicans had no intention of welcoming back Democrats from states that had seceded. Instead, they passed new legislation to reinstate military governments throughput the South. Then they established the Freedmen’s Bureau to assist the 4 million freed slaves.

Johnson promptly vetoed everything Congress had passed.

Republicans were not strong enough to override a presidential veto until early 1867, when they passed into law even more harsh Reconstruction Acts, with military governments replacing civil governments set up by Southern Democrats. Johnson warned they were fostering hatred and creating a state of permanent unrest. Radical Republicans answered by slashing back at Johnson and passing the Tenure of Office Act. This total rebuke now forbade the president of the United States from removing ANY federal official without the express consent of the U.S. Senate.

This was tantamount to a declaration of war and Johnson answered by firing Secretary of War Edwin Stanton. The House quickly voted to impeach the president on 11 counts. The Senate trial lasted two months and the final tally was 35 guilty and 19 not guilty … one short of conviction. Johnson served out his term, but his political career was over. His fortitude in the face of overwhelming Congressional pressure strengthened the office of the president and helped preserve the separation of powers intended by the framers of the U.S. Constitution.

Not bad for a former illiterate tailor who never spent a single day in a formal schoolroom.

Jefferson Davis was a Genuine War Hero When He Arrived in the Senate

Jefferson Davis’ arrival in Washington, D.C., as a U.S. Senator from Mississippi was like a coronation.

By Jim O’Neal

Thirteen-year-old Jefferson Davis was tired of school. He returned home from Wilkinson Academy, a few miles from the family cotton plantation, put his books on a table, and told his father he would not return. Samuel Davis shrugged and told his youngest son that he would now have to work with his hands rather than his brain. At dawn the next day, he gave young Jeff a large, thin cloth bag, took him to the cotton field and put him in a long line with the family slaves picking cotton.

Three days later, he was back at Wilkinson, happily reading and taking notes with his bandaged hands.

By 16, Jefferson had mastered Latin and Greek, was well read in history and literature, and eager to study law at the University of Virginia. Instead, he spent four years at West Point, graduated in the bottom third of his class and then entered the Army. He was 20 years old and fighting in both the Black Hawk War and the Mexican-American War.

Jefferson Davis’ arrival in Washington, D.C., as a U.S. Senator from Mississippi was like a coronation. A true war hero at age 36, he was recognized by everyone and warmly greeted by all he met. After all, Jeff Davis was the first genuine war hero in the Senate in its entire 58 years!

His rise to prominence occurred as one generation of leaders died or retired – Henry Clay, John C. Calhoun, John Quincy Adams, Daniel Webster – and a younger one was set to take over, led by Stephen Douglas (39), Andrew Johnson (39), Alexander Stephens (35), Salmon P. Chase (39) and William Seward (35).

Jeff Davis began to give important speeches in the Senate and everyone sensed he had a future in politics.

The Senate proved comfortable and prestigious, providing an intimate venue to discuss and debate the great issues of the time. Yet despite all the exciting opportunities facing the young nation, the hard fact was that slavery was a pernicious issue lurking in the shadows. It was like a cancer that seemed to grow more lethal after every “compromise” designed to resolve it.

An example was the fateful Compromise of 1850, intended to resolve the four-year controversy over the status of the new territories that accrued to the U.S. after the war with Mexico. California was admitted as a free state, and Texas had slaves, but had to surrender its claim to New Mexico. Utah and New Mexico were granted popular sovereignty (self-determination) and there was a more stringent Fugitive Slave Law (destined to be revoked by the Dred Scott reversal).

Jeff Davis felt so strongly that slavery was a 200-year tradition (to be decided by individual states) and detested the 1850 Compromise so much that he resigned his Senate seat to run for governor of Mississippi, confident this would enhance his national visibility, send a strong message to the North and bolster any wavering Southerners. The strategy failed when he lost the election, leaving him with no political office.

Davis bounced back into the Senate by one vote and new President Franklin Pierce (1852) selected him to be Secretary of War, a powerful position to resist the continuous threat from the North to impose their will on the South by any means necessary. The 1854 Kansas-Nebraska Act just roiled the opposing forces and thoughts of secession were like dry kindling waiting for the proverbial spark. First was President James Buchanan (1856), a Democrat who seemed helpless or resigned to the inevitability of war.

As abolition forces gained momentum and the South grew even more resolute that they would not concede a principle that states’ rights trumped Federal aggression, it was only a question of how or what set of events would tip the nation into a civil war. The answer was in plain sight.

In the critical election year of 1860, though still hopeful of a peaceful settlement on slavery, Davis told an audience that if Republicans won the White House, the Union would have to be dissolved. “I love and venerate the Union of these states,” he said, “but I love liberty and Mississippi more.” When asked if Mississippi should secede if another state did, he roared, “I answer yes!” And if the U.S. Army tried to suppress it? Davis answered even more vehemently. “I will meet force with force!”

Republican Abraham Lincoln was elected president in 1860.

The slavery issue was simply not resolvable by anything but force. Few foresaw how much force would be needed and the enormous carnage and loss of life involved. War always seems to be much more than anticipated. The 20th century would really amp it up and the 21st century has gotten off to a rocky start, as well.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].