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from:
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<A HREF="http://members.tripod.com/~american_almanac/prometh1.htm">American
Prometheus -*The American System</A>
--[1a]--
The American Promethus, Part I:

Who Made the United States A Great Power?

by Anton Chaitkin

Printed in The American Almanac, 1989. First printed in New Solidarity
 Newspaper, August 1, 1986.
------------------------------------------------------------------------

In the Aeschylus play, Prometheus explains his battle with the Olympian
gods-perhaps these gods stand for the aristocratical families who wished
the mass of men to live in darkness, or to be slaughtered and replaced
by some new "superior" race:
"Soon as even he had seated himself on his father's throne, [Zeus]
forthwith assigned to the deities their several privileges and
apportioned unto them their proper powers. But of wretched mortals he
took no heed, but desired to bring the whole race to nothingness and to
create another, a new one, in its stead.

"Against this purpose none dared make stand save I myself-I only had the
courage; I saved mortals so that they did not descend, blasted utterly,
unto the house of Death. Therefore am I bent by so grievous tortures,
painful to suffer, piteous to behold.

."..I caused mortals no longer to foresee their doom.... I caused blind
hopes to dwell within their breasts.... and besides it was I that gave
them fire.... and therefrom they shall learn many arts."' Plato,
speaking through Protagoras, says that "Prometheus ... found the other
animals well off for everything, but man naked, unshod, unbedded, and
unarmed ... Prometheus therefore ... stole from Hephaestus and Athena
the gift of skill in the arts, together with fire-for without fire it
was impossible for anyone to possess or use this skill-and bestowed it
on man. In this way man acquired sufficient resources to keep himself
alive, but had no political wisdom.... But into the dwelling shared by
Athena and Hephaestus, in which they practiced their art, he penetrated
by stealth, and carrying off Hephaestus' art of working with fire, and
the art of Athena as well, he gave them to man."' [1]

The twin gifts of Prometheus have always been inseperable: political
wisdom (republican statecraft), and command of the knowledge of nature's
fires. Prometheus once found a congenial home in America, and may yet
again.

At the end of the American Civil War, General of the Army Ulysses S.
Grant sent troops under General Philip Sheridan to the Texas-Mexican
border. Supplying the Mexican patriot forces of President Benito Juarez
with military equipment, Grant thus helped expel the Europeans whose
armies had invaded Mexico in 1862, who had imposed the Hapsburg "Mexican
Emperor" Maximilian.

U.S. Grant's aide, Adam Badeau, described the relations between the
General and Matias Romero, Juarez's ambassador to the United States:
"Romero, though of the Latin blood, was an American and a republican,
the representative of a country that had been attacked at the same time,
and, as Grant believed, in the same interest as the Union.... When Grant
arrived in Washington, after the surrender of Lee, Romero promptly
called on him, and Grant informed the Minister of the purport of his
orders to Sheridan ... From this time the Northern soldier and the
Southern diplomatist worked in harmony. Grant ... was extremely annoyed
at the delay in the action of our own Government and thought the French
Emperor should have been notified at once to withdraw his troops from
Mexico. He had many conferences with the Mexican Minister on the
subject; even expressing a desire to go at the head of an army himself
and assist the Mexicans in driving out the invader....

"I [Badeau] was present at many of the conversations of these allies,
and had especial charge of those of their papers which Grant was
unwilling to expose to ordinary official inspection... Romero furnished
Grant with constant information from his own Government and country, and
many an intercepted dispatch have I translated, predicting or discussing
events in Europe as well as Mexico ... and even the intrigues in the
United States which complicated our own politics with those of Mexico.

"When at last the end of the feeble empire came Grant often told me his
views. He was very stern, and thought that the pretender to a throne
should be punished as severely as any other traitor. Because Maximilian
was of royal blood did not lessen his offense.... He more than once said
in my hearing that Maximilian ought to die; and he told me that he made
the opinion known to Romero, who he supposed found means to communicate
it to his Government; not of course in official documents, for
diplomatists are not in the habit of entrusting such secret matters to
public dispatches; they have other channels than those accessible to
Congressional resolutions. But although neither Grant nor Romero chose
to commit himself by recorded expressions, Grant always believed that
his tacit condemnation of the invader had its weight.... Grant believed
it necessary to show European monarchists that they could not with
impunity attempt to set up institutions on this continent menacing to
our own; he thought the blow offered to Mexico was in reality meant for
this country; and he considered that no such effectual lesson could be
taught imperial enemies of this republic and of all republics, as the
punishment of a princely offender."[3]

President Lincoln had been murdered at the war's end, and Secretary of
State William H. Seward was no longer under Lincoln's restraining hand.
Seward now worked for a British-allied New York and Boston political
faction representing all that Lincoln had fought against. Mexican
Ambassador Romero had suspected treachery from Seward and had worked
directly with Lincoln when possible during the war; now General Grant
worked directly and secretly with the Mexican republicans.

The New York Times screamed bloody murder at the news of Maximilian's
execution in 1867:
"There is not a man anywhere, with a spark of honorable feeling in his
nature, who will bear this news without emotion,-without sympathy for
this noble and gallant young prince, and detestation for the monsters
who have glutted their vengeance in his blood."[4]
The principal owner of the Times, Leonard Jerome, had long been a
personal friend and admirer of the Hapsburgs. The Times had called for
the annexation of Mexico, as a "compensation" for the secession of the
South from the Union in 1860, which the Times would allow to be a
permanent secession:
"Ignorant and degraded as they are, the Mexicans ... [neverthe- less]
would regard the people of the free North as benefactors and deliverers
from anarchy and revolution."[5]
William Seward had meanwhile counseled President-elect Lincoln to let
the South go in peace.

Lincoln chose instead to fight for the Union. The mobilized Americans
defeated the plans of European imperialists for a worldwide Plantation
System, which was supposed to embrace Asia, Africa and the Western
Hemisphere; a system of Peasants, in various forms of slavery, and
Lords. The leaders of secession also vainly attempted "filibusters," the
armed conquest of Mexico, Central America and the Caribbean. The United
States was to have been an overseer in this slave system, or it was to
have been crushed.

Victorious industrial republicanism would demonstrate to the imperial
enemies what free men could accomplish. In the twenty years following
the Civil War, the victors launched technological innovations of a
sweeping and unprecedented nature, calculated to benefit mankind. Since
we have made no similar progress since the end of that extraordinary
period; since what they did must, for mankind's future, be repeatable
today; it should be instructive to inquire into the lives of some key
figures in this republican industrial revolution.

------------------------------------------------------------------------
The Railroad as the Driver

General William Tecumseh Sherman, who with General Grant had planned and
achieved the Union's military victory, was shifted West at the war's end
to command the Division of the Mississippi. For the next four years,
Sherman's chief responsibility was to inspect, oversee and protect the
construction of the first transcontinental railroad, the Union Pacific.
President Lincoln had signed the law organizing this national project,
which Sherman himself had previously long promoted. It was paid for with
huge grants of federal land and more than $50 million of government
money, while private investors bought in with about $4 million.
Many of the railroad workers had served under Sherman, and still wore
their Union uniforms; many of the railroad's executives had been
Sherman's officers. The chief engineer, retired General Grenville M.
Dodge, had been Lincoln's advisor as to the route the first Pacific line
was to take. Sherman now constantly conferred with Dodge on the progress
of the road.

At odds with the government over its punitive Reconstruction policy,
Sherman in 1867 criticized the movement of troops into the defeated
South, a transfer which depleted the railroad guard force. [6] Yet
Sherman met with the western Indians and on the whole maintained peace
with them, aided by General Philip Sheridan, now shifted from his
earlier pre-Juarez duties on the Rio Grande. Sherman contributed greatly
to the settlement of the Navajos, Cheyennes, Kiowas, Arapahos and
Comanches onto reservations in the 1870s.

Western railroad construction lay at the heart of republican postwar
strategy for American industrial development. In 1867, a very
optimistic, eager 30-year-old retired general named William Jackson
Palmer, and his 21-year-old chief assistant Edward Hibbard Johnson,
headed a survey team along the 32nd and 35th parallels. General Palmer
was the construction manager for the Kansas Pacific Railroad, mapping
routes through New Mexico and Arizona to the Pacific coast, several
times leading his men to dodge or lightly skirmish with hostile Indians.
In 1868 he reported on the vast resources of the southwestern U.S.

The Kansas Pacific route ran southward of the pioneer Union Pacific. It
was an enterprise of the Pennsylvania Railroad, whose president J. Edgar
Thomson had sent Palmer and his assistant Johnson out west. Under Gen.
Palmer's direction the Kansas Pacific was extended from Kansas City,
Missouri, reaching Denver, Colorado, in August, 1870; the last 150 miles
were completed in 150 days.

William J. Palmer was born in Kent County, Delaware on Sept. 18, 1836.
The state of Colorado celebrates the 150th anniversary of his birth this
year, for he is well known there as one of the greatest of that state's
founders. Given the shameful hold of anti-technological political forces
over present-day Colorado, however, it might be fairer for them to
forego any celebration, leaving a remembrance of Palmer to those
actively seeking industrialization-such as the Mexicans, for whom
Palmer's life holds great meaning.

Palmer grew up amongst his Quaker compeers in Philadelphia. At eighteen
he joined an engineering group surveying for the location of the
Hempfield railroad in Washington County, Pennsylvania, just southwest of
Pittsburgh. On behalf of relatives in the railroad business, Palmer went
to England in 1856 to study British railroad and mining operations. His
letters back home show a growing excitement about the possibilities of
utilizing new rail, iron and, especially, coal technologies in the
United States.

He was also disgusted with British labor practices. He toured the
Cornish mines, ankle deep in scalding water:
"Ten steps further, when every step seems to be a measure of your life.
There is a little hollow in the rock. That... is where [a] little boy
[miner] laid down and died.... Strangers visiting the depths very
generally lose 5 or 6 lbs. weight. The miner not so much, because he is
used to it. But he can never work in any other mine, or at the surface
again-he is tied down to 1,500 feet. 35 is an average of their life.
Their wages averages 62 1/8 cents a day."
Palmer wrote to his parents:
"I shall return to your shores a ten-fold better American (as such) than
I left it, and with fuller confidence in the principle of human equality
and Republicanism generally than, I think, I should ever have felt had I
never visited aristocratic England."[7]
Palmer had met Pennsylvania Railroad president J. Edgar Thomson in
England-Thomson was also spying out the latest British technology. Young
Palmer explained to Thomson that coal could replace wood as the
railroad's fuel source. The PRR was then in an "ecological" crisis,
burning 60,000 cords of wood per year and rapidly stripping the
right-of-way of all trees. Palmer promised that he would devise a box to
take most of the smoke out of coal combustion. The thankful Thomson
hired Palmer as his private secretary in 1857, and the Pennsylvania
became the first American railroad to convert to coal.

Over the next four years, Palmer was most concerned with the problems of
efficiency and power in combustion. Among his collaborators in
experimental industrialism were the PRR vice president Thomas A. Scott;
Scott's assistant Andréw Carnegie, an immigrant from Scotland one year
older than Palmer, who had learned from his avidly republican family to
love the poet Robert Burns and the U.S.A.; and Evan Pugh, just back from
a European education which included Göttingen University and some study
under Justus Von Liebig, the father of German and American
bio-chemistry.

A relative of Palmer's studying in Freiburg, Saxony, had written him a
glowing introduction to Evan Pugh as a genius whose experience could aid
Palmer materially. Pugh and Palmer worked together on furnace layouts
and coal chemistry.

Pugh was meanwhile building up the "Farmers' high school" (founded in
1855) of which he was president. Thomson and the PRR financially
underwrote Pugh's school and backed it in the state legislature with the
railroad's substantial lobbying clout. In 1862 President Abraham Lincoln
signed the Land Grant College bill; Pugh's school was awarded the
state's federal grant money by the legislature, and it was rechartered
as the Agricultural College of Pennsylvania. President Evan Pugh raised
the school, renamed Pennsylvania State College in 1874, into one of the
premier centers of American technology. Only in recent years has Penn
State fallen under the sway of Malthusian, anti-technology radicals.

------------------------------------------------------------------------
The Franklin Legacy


Benjamin Franklin had created, in colonial Pennsylvania, many
institutions devoted to the spread of Augustinian civilization. His
American Philosophical Society and his Pennsylvania Society for
Manufacturing and the Useful Arts sought to develop America's industrial
skills and, ultimately, its national power. Franklin's political economy
expressed the role of America as the outpost and vanguard of human
progress: he called for high wages, plentiful cheap credit and maximum
industrial enterprise. During the Revolution, Franklin wrote to the
Irish about tariffs as a protection of national sovereignty. His world
renown as an experimental and theoretical scientist was coupled with his
role as America's grand political strategist. In Franklin, the world saw
scientific progress and republican statecraft as one and the same thing.


Franklin's nationalist outlook was carried forward by Alexander Hamilton
into the new Federal Government, with the Bank of the United States
(located in Philadelphia), increasing protectionist tariffs and public
works. Franklin's Philadelphia remained the center of the republican
faction, not only for the U.S.A. but in many respects for the untire
world. Irish revolutionary emigre Mathew Carey, after serving as a
printer in Franklin's French headquarters, was sponsored in business by
the Marquis de Lafayette and President George Washington. Carey's
Philadelphia publishing house was the first and for a long time the
largest in America. A Roman Catholic, Mathew Carey published the first
Catholic Bible in America.

Philadelphia was the U.S. capital from 1790 to 1800. Around Carey and
his fellow publisher William Duane there gathered in that city a growing
number of Ibero-American statesmen and diplomats, concerned to build
free nations in the Catholic regions south of the U.S. border. Among
them were supporters of the 1810 Mexican revolution of the Catholic
priest-republicans Hidalgo and Morelos. The most famous in this group
was Manuel Torres, a Spanish nobleman and an emigre from Colombia whose
national cause he had adopted.

Following the second U.S. war with England (1812-1815) Torres, Duane and
Carey educated American republicans including President James Monroe,
Secretary of State John Quincy Adams and Speaker of the House Henry Clay
on the viability of independent republics in South America. They warned
of the danger of British and other European intervention in this
hemisphere.

William Duane, an Irishman with important Erasmian Catholic connections
in England, had been arrested and thrown out of India by the British
authorities for printing attacks on the East India Company. Having been
born in the American colonies, which had since revolted against that
same East India Company oppression, Duane had returned to America and
taken up journalism in Philadelphia.

Duane's newspaper Aurora exposed British intentions in Spanish America,
describing the London-based imperialist "revolutionaries" Aaron Burr and
Francisco Miranda. Burr was in exile after his arrest by President
Thomas Jefferson, having been charged with treason for trying to set up
a new British-backed empire comprising Mexico and half the U.S.A.
Miranda had proposed a similar new empire to William Pitt in the 1790s.
Duane continually warned of British encouragement of hostility between
the United States and Spanish America. In opposition to the British,
Duane, Carey and Torres foresaw the emergence of powerful free republics
throughout the Western Hemisphere, allied and economically and
militarily invincible.

In 1822 President Monroe accorded U.S. recognition to five
Spanish-American nations, and received Duane's and Carey's friend and
guest Manuel Torres as charge d'affaires from Colombia, the first
official diplomatic representative of any lbero-American nation. The
following year the President proclaimed his anti-colonial, anti-British
Monroe Doctrine.

Meanwhile Mathew Carey launched a systematic attack on the economic
outlook of Adam Smith, the Free Trade policies preferred by the British
East India Company, and the murderous anti-population theories of Thomas
Malthus. Carey's political economy, adopted by his student Henry Clay
and dubbed by Clay the "American System," revived the dirigistic
measures of Hamilton, and now comprehended the industrial, scientific
and cultural development of free republics throughout the Western
Hemisphere. German economist Friedrich List studied under Mathew Carey
in Philadelphia for many years, then returned to Germany to build the
republican movement and the Customs Union, the first step toward German
nationality.

The American System briefly held power in the 1820s with President John
Quincy Adams, Secretary of State Henry Clay, ambassador to Mexico Joel
Poinsett, and Nicholas Biddle as president of the Philadelphia-based
Bank of the United States. In the 1830s and 1840s, a succession of
rotten Democratic presidents, and two quickly dead Whigs, repeatedly
reduced the nation to chaos and depression.

But Philadelphia's Franklin tradition remained strong. Mathew Carey's
son Henry C. Carey wrote economics books and pamphlets from a Christian
humanist standpoint, pressing the attack against Malthus and British
imperial looting policies in India and Ireland, against the British
opium trade, against the spread of negro slavery, proposing the harmony
of interests of capital and labor, and of North and South.

Illinois Whig politician Abraham Lincoln, a follower of Henry Clay's
hemispheric American System ideas, studied Henry Carey's texts and had
Carey write the economic core of the 1860 Republican Party platform, on
which Lincoln ran for the presidency.

Around Henry Carey there gathered the Philadelphia group of republican
industrial, financial and literary collaborators, preparing themselves
for a revival of American industrial creativity.

There was banker Jay Cooke. There was ironmaster Joseph Wharton, head of
the American Iron and Steel Institute, lobbying for protective tariffs.
And there was the Pennsylvania Railroad, by the time of the Civil War
America's largest corporation. Typical of this Philadelphia faction, PRR
President J. Edgar Thomson committed all available financial resources
to construction, maintenance and development of the railroad and allied
enterprises. He did not play games with stocks and bonds, and would not
tolerate any of his associates or employees doing so. At his death in
1874, Thomson controlled about one billion dollars in corporate
entities; yet his personal net worth was in the hundreds of thousands.
There was no paper pyramid-he had plowed it all back into construction
and development.

------------------------------------------------------------------------
Philadelphia at War

When the Republican Party nominated Abraham Lincoln for the presidency
in 1860, William J. Palmer was 23 years old, and private secretary to
the president of the Pennsylvania Railroad. During the previous year,
pro-slavery thugs had threatened to set fire to a meeting of a
Philadelphia lecture club organized by Palmer. He and his friends had
put their lives on the line to defend their freedom of speech. Rioters
clashed with the 600 police outside; Palmer as bodyguard for the invited
speaker, and club-wielding Judge William Kelly (later Henry Carey's main
ally as Congressman "Pig Iron Kelly") as chairman subdued the thugs
inside. In August 1860, Palmer was elected Secretary of the Philadelphia
Young Men's Re- publican Club. His close friend Isaac Clothier, later
 the founder of the Strawbridge and Clothier department store, described
the campaign in a retrospective letter:
"Thousands of young Republicans all over the North formed associations
under the general name of Wide Awakes, and wearing oil-cloth caps and
carrying torches marched in military array to the political meetings of
the times. These Clubs ... helped to infuse a spirit into the Republican
movement which perhaps contributed largely to its success. Many a night
... Palmer and I marched in uniform with the local Philadelphia body-the
Republican invincibles-to meetings held in Philadelphia and different
points within fifty miles of the city, where we went by train, returning
home often in the early morning.... Those uniformed and marching
companies were the precursors of the regiments which, carrying musket
and bayonet instead of the torch, sprang into being six months later at
Lincoln's call."

The following March 4, 1860, President-elect Lincoln passed through
Philadelphia and raised the flag over Independence Hall, on the way to
his inauguration in Washington, D.C. But PRR operations chief Thomas A.
Scott advised Lincoln to change his plans. Intelligence reports showed
that the Baltimore Sun was whipping up an anti-Lincoin mob, egging them
on to a possible assassination when Lincoln's train was to pass through
Baltimore. Scott proposed that Lincoln go back to Harrisburg,
Pennsylvania, and travel from there, in disguise, directly to
Washington, to arrive before the press knew what had happened. Lincoln
followed this plan, and his inauguration was guarded by 15,000 soldiers
and police. The Baltimore Sun changed its editorial line slightly, from
attacking Lincoln as dangerous and worthy of death, to branding him a
lunatic, and criticizing his security precautions as cowardly! Perhaps
this is the model for the current press coverage of Lyndon LaRouche's
presidential campaign.

The Pennsylvania Railroad was now placed at the disposal of the Union.
Lincoln chose Thomas A. Scott as Assistant Secretary of War in charge of
Transportation and Communication; Scott brought his assistant Andréw
Carnegie to Washington with him. Their first job was to move troops to
the defense of Washington through Maryland, where secessionist mobs had
destroyed most of the rail lines. Carnegie was injured while replacing
some sabotaged telegraph wires, and arrived on the first troop train
into Washington with blood streaming down his face. Scott and Carnegie
built the rail and telegraph lines and the bridges linking Washington
D.C. with Virginia, securing the capital city and allowing Union troops
to operate on the offensive southward. Carnegie organized the Union
telegraph office, using mostly Pennsylvania Railroad personnel for
operators. He then returned to Pittsburgh to direct the western
Pennsylvania war operations of the PRR. Thomas Scott remained as
Assistant War Secretary, running some of the crucial movements of Union
troops in 1862 and 1863.

William J. Palmer recruited and trained the elite Pennsylvania 15th
Regiment cavalry corps, who moved in advance of Union armies, scouting,
spying, crashing through enemy camps. In this manner he prepared the
Union forces' intelligence at Antietam in 1862. He was afterwards
captured behind Confederate lines, imprisoned and nearly executed as a
spy. Exchanged, he rejoined the fighting and led his regiment at
Chickamauga and Missionary Ridge. Palmer's regiment made a unique
contribution to the success of Sherman's march towards Atlanta:

General Palmer was responsible for:
"examining and mapping out the country in advance of the army ... [for
which] he was peculiarly fitted by his early training as a civil
engineer. In this scouting service nothing escaped his vigilant eyes:
the character of the soil upon which the roads were made; their general
directions; the strength of the bridges, the depth of the streams, all
were carefully noted and sketched, and were absolutely reliable. Every
officer in the regiment was directed, yea compelled, to be thus
observing." [8]

------------------------------------------------------------------------
Building a New World


At the close of the war, General Palmer was sent west, along with his
assistant and chief telegrapher Edward H. Johnson. For four years Palmer
and Johnson were to map out and construct the PRR subsidiary, the Kansas
Pacific Railroad.

The Philadelphia republican faction, centered around the Pennsylvania
Railroad, was now engaged in a mammoth project of nation-building.
Lincoln had given them the green light for devel- opment. In the face of
continual British trade war, protective tariffs were set at around 50%,
allowing steel mills to be built for the first time in America. Railroad
companies were given large land grants to assure long term investment in
their construction. After Lincoln's murder, his easy-credit policy had
been partially maintained, despite outraged cries from international
financiers. The Public was still reading two wartime pamphlets printed
by banker Jay Cooke and written by Henry Carey's disciple, Treasury
Statistician/tariff expert William Elder, on the benefits of credit
expansion for industrial development.

By 1871, J. Edgar Thomson and his financial partners Scott, Carnegie and
Palmer controlled the Union Pacific Railroad, the first transcontinental
line which had been completed with the Golden Spike two years before.

Andréw Carnegie's Keystone Bridge company was replacing wooden railroad
bridges with new iron ones. Between 1868 and 1874, Carnegie, Thomas
Scott and J. Edgar Thomson combined to build the first bridge across the
Mississippi River, at St. Louis; the partners built at least two other
Mississippi bridges, giant pioneering enterprises at the time, together
with the rails and equipment to connect them to existing rail lines.

The Pennsylvania railroad grew at a furious pace. President J. Edgar
Thomson poured money into the purchase of the new American steel rails,
in the long run cutting maintenance costs compared to the old iron
rails. The PRR underwrote the establishment of young George
Westinghouse's Air Brake Company in 1869, and immediately contracted for
the new automatic technology for all the line's cars. They could now run
much longer trains at higher speed, without sending brakemen across the
top of moving trains to screw down brake levers car by car. Pennsylvania
railroad tonnage doubled between 1870 and 1873; by the time of Thomson's
death in 1874, the line and its subsidiaries comprised 6,000 miles,
running from New York to Chicago, down to Washington and through much of
the Midwest and South.

The partners' banker, Jay Cooke, was building the second
transcontinental line chartered by Congress, the Northern Pacific, from
Duluth, Minnesota on Lake Superior, out to Puget Sound, on the Pacific
coast in Washington State.

Jay Cooke had sold nearly three billion dollars worth of small
denomination U.S. bonds during the four years of the Civil War,
appointing 2,500 subagent salesmen. He had outflanked the Wall Street
and London financiers who tried to blackmail President Lincoln for war
credits (they wouldn't sell U.S. bonds-after all, might there soon be no
United States?) It had been an un- precedented "sales drive" appealing
with great success to the patriotism of the average citizen. Cooke now
began to use similar methods, raising loan capital from public
subscription, in order to open up a vast area of undeveloped territory.
With his railroad, the northern great plains, the Rocky Mountains and
the Pacific northwest could be occupied by settlers under Lincoln's free
homstead and industrial land grant programs.

Upon the completion of the Kansas Pacific Railroad line through to
Denver in 1870, meanwhile, William J. Palmer, backed by PRR president J.
Edgar Thomson, quit the Kansas Pacific and launched a bold new venture.
He created the Denver and Rio Grand Railroad, proposing to build it from
Denver, Colorado, in the American Rockies, south to El Paso, Texas, and
through to Mexico city. In 1871, Palmer, his Kansas Pacific fellow
executive Josiah Reiff, and Philadelphian George Harrington, formerly
Lincoln's Assistant Treasury Secretary, set up the Automatic Telegraph
Company. It was to compete with the monopoly Western Union Company,
which was a political intelligence front for anti-American international
financiers. Palmer sent his assistant Edward H. Johnson back east to
supervise the Automatic's work, and they hired the 24-year-old Thomas
Alva Edison to invent their technology. This was Edison's first serious
financial backing as an inventor. We will return later to the story of
Edison's sensational achievements, the victory of New World republicans
against European oligarchs.

------------------------------------------------------------------------
Joint Development -- or None at All


The Denver and Rio Grande Railroad was designed to launch simultaneously
the economic development of the American west and of Mexico. The D & R
G's first annual report, published in 1873, stated in unmistakable terms
Palmer's strategic purposes with respect to Mexico:

"It has been a part of the plan of this company, from the inception, to
extend its line southward from El Paso along the Rocky Mountain plateau
to the City of Mexico and the tropical plantations of the adjacent
coasts.

"The heart of that republic with its nine millions of people was as
naturally and surely our objective point, as the Pacific slope of the
United States with its 700,000 population was the proper objective of
the Pacific Railroad when it started across the plains from the banks of
the Missouri River.

"En route, the development of the rich mines of Chihuahua, Durango,
Guanjuato ... and the State of Mexico, of the ... wine and cotton
district of northern Mexico, of the tin and iron deposits of northern
Durango, of the pineries of the Sierra Madre, of the great wheat field
of Central Mexico, as large as that of California, is sure to furnish a
large local trade of itself, sufficient to warrant the extension of the
road.

"But when the connection is made, an enormous through traffic will
spring up between the heart of Mexico, with its harbors on two oceans,
and the Rocky Mountain country of the United States-Colorado, Kansas,
Nebraska, New Mexico, Wyoming, Montana, Utah, California; indeed, the
greater part of that vast and rapidly growing region lying between the
Missouri River and the Pacific Ocean, to which this trunk north and
south line, and the several Pacific railroads crossing it, will render
it accessible. The Mexican tropics are the only tropics reachable by
railroads from the United States. To reach all others, the sea must be
crossed.

"Our New West will get its sugar, coffee, tobacco, rice, rum, molasses,
indigo, olive oils, drugs, nuts, and spices, gums, tropical fruits of
all kinds, cotton, cocoa, coquito for oil, cochineal, india-rubber,
mahogany and a great variety of other hard and precious woods, ropes,
tarpaulins, matting and paper (made of the maguey fibre), oysters and
fish, dye-woods, soap, leather and saddles, salt and saltpetre, the
ornamental Mexican earthenware and statuettes, seeds of all kinds to
exchange for northern varieties, cheap horses and mules, and bullion,
from Mexico; and, in return, will send back a thousand articles of
domestic and agricultural use now unknown to the Mexicans-iron plows,
shovels, cooking-stoves, grates, ranges; also mining machinery and
implements of all kinds, sugar, cotton, and woolenmills and brick
machines, wagons and carriages, general hardware, and all sorts of
tools, bar-iron and steel, wire, guns and pistols, pipe, furniture,
butter, hams, cheese, lard, grapes, apples, bush and other temperate
fruits, not to be had there, wines and brandies from the Rio Grande
Valley of New Mexico, ice, choice stallions and bulls, etc., to improve
their degenerate breeds, cotton and woolen goods, and innumerable other
necessities and luxuries from which the people of Mexico have been
almost entirely cut off, in consequence of their topographical
isolation. The manufactured part of this list, and articles of s#ill
generally, will at first come by this route from Chicago and St. Louis,
but in a few years from the works at Canon City, Denver, Pueblo, and
Albuquerque, in Colorado and New Mexico.

"In the course of time, as the artisans of Mexico become skilled, as
capital there takes a manufacturing turn, as coal mines are opened, and
iron works and a more complex kind of manufactures are established, many
things will be made there which, for the first few years, must be
imported; but, by that time, the very growth which this would indicate
will render necessary an interchange manifoldly larger......"

Financing for the D & R G's United States construction came from
Palmer's allies in Philadelphia and Colorado, and from sympathetic small
capitalists in England. No outside banking house was involved.

In the summer of 1871, Gen. Palmer acquired 10,000 acres at the foot of
Pikes Peak, and on this site built the city of Colorado Springs. For no
particular religious reason, but to prevent his city from degenerating
into violence and disorder like many prairie towns, saloons were banned.
Palmer explained,
"My theory for this place is that it should be made the most attractive
place for homes in the West, a place for schools, colleges, science,
first class newspapers, and everything that the above imply." [10]
Beauty, order and culture were Palmer's objectives in Colorado Springs.
The results have been permanent. Palmer was the principal founder there
of Colorado College, and Colorado Springs is today the home of the North
American Air Defense Command Headquarters and the United States Air
Force Academy.

Palmer envisioned the Colorado of the future as rivalling Pittsburgh and
Chicago in industrial power, and the best European cities for beauty. As
the D & R G was built, Palmer's Central Colorado Improvement Company
opened up many coal and iron mines along its route. The steel mills he
set up in Pueblo began providing rails for his construction. Such heavy
industry as has been built in Colorado is largely due to his efforts.

Rather than collapsing into a post-Civil War depression, the United
States had been freed to expand its industries and agriculture in a way
the world had never before seen. In this remarkable period:

•the yearly production of Lake Superior iron ore went from 193,000 tons
(1865) to 1,195,000 tons (1873);
•pig iron production, at 823,000 tons in 1865, was no better than it had
been in 1847!-but by 1872 it had reached 2,548,000 tons;

•rails produced went from 318,000 (1865) to 893,000 tons (1872);

•coal increased from 24 million (1865) to 58 million tons (1873);

•the number of patents, which had been stable in the range of 3-4000 per
year from 1858-1864, rose to 6,099 in 1865, to 12,201 in 1867, remaining
at about that level until 1881;

•the freight rate for a bushel of wheat sent from Chicago to New York
was $22 by water vs. $44 by rail in 1867, $24 by water vs. $33 by rail
in 1872; further progress dropped the rail freight price down to $14 by
1881, so the competing water price fell to $8;

•immigration averaged 385,000 per year from 1869 to 1873, compared to
168,000 per year from 1855 to 1865;

•the average hourly wage in the United States rose by about 19 percent
between 1865 and 1872, while basic commodities such as coal, copper, com
and cotton receded in price from wartime to approximately prewar
levels".
--[cont]--
Aloha, He'Ping,
Om, Shalom, Salaam.
Em Hotep, Peace Be,
Omnia Bona Bonis,
All My Relations.
Adieu, Adios, Aloha.
Amen.
Roads End
Kris

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