The South and Northern Finance Imperialism

 

One of the outcomes of the devastation and destruction was a need for Southern men to find employment and rebuild their impoverished section, thought  this most often meant working under the direction of the conqueror. Though Lee refused “to accept a sinecure from a Northern business concern,” many former Confederate officers became the agents or attorneys of the invading capitalists and “took action that had all the earmarks of scalawagism”, in the words of the author below.
Bernhard Thuersam, www.Circa1865.com   The Great American Political Divide

The South and Northern Finance Imperialism

“One of the prices the South pays for its progressive industrialization is increasing servitude to Northern capital. New York has grown into the most autocratic city-state of modern times, with the Southern province of the United States as one of its important colonies.

The great financial houses of that and kindred cities control most of the region’s strategic industries, having sent out a second and third generation of carpetbaggers to found factories or to purchase those already existing. The Southern industries owned and controlled by outsiders include the region’s railroads, its coal fields, its iron reserves, its electric power, and its gas, Sulphur, and oil sources.

The existence of Northern patent monopolies and the absence of local machine manufacturing permit outside direction even of industries locally owned. The South manufactures its own cast-iron pipes, steel rails and bridges, and oils, but not its hardware, locomotives, automobiles, clocks, radios, dynamos, drugs, and many other finished products requiring the highest skill to produce and bringing in the highest profits.

Retail profits are siphoned out of the section by Northern-owned chain stores. The Southern businessman usually is a mere factor or agent of Northern principals, who control both production and distribution. His function is to sell [Northern articles] endeared to the Southern public through advertising. Some of these articles are as worthless as the wooden nutmegs the Yankee peddler is said to have imposed upon the public in ante-bellum times.

In 1937, economist David Coyle estimated that the South was paying out a billion dollars annually in excess of its income. It balanced its credit by selling property to investors from other sections of the country, by borrowing, by going bankrupt, and by destroying forests and lands to secure immediate incomes.

The possibility of the South revolting against its debtor status, in the manner of the Revolutionary planters against their British creditors, is ruled out by the outcome of the Civil War. That Southern leaders are able to reconcile the sons and grandsons of those who followed Robert E. Lee and William Jennings Bryan to the economic domination of the North caused Benjamin Kendrick to cry out bitterly in 1942:

“We are confronted by a paradox more amazing and ironical than any ever conjured by the imagination of Gilbert and Sullivan. The people of the South, who all their lives have suffered deprivation, want, and humiliation from an outside finance imperialism, followed with hardly a murmur of protest, leaders who, if indirectly, were nonetheless agents and attorneys of the imperialists.” What was true in 1942 is truer thirty years later.”

(The Everlasting South, Francis Butler Simkins, LSU Press, 1963, excerpt pp. 55-57)