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“Despite his increasing wealth (the money came in so fast he could scarcely keep track of it), Matthew maintained close contact with the merchants and manufacturers. He sent out private letters periodically to prominent men in the Southern business world in which he told of the marked psychological change that had come over the working classes of the South since the birth of the K. of N. He told how they had been discontented and on the brink of revolution when his organization rushed in and saved the South. Unionism and such destructive nostrums had been forgotten, he averred, when The Warning had revealed the latest danger to the white race. Of course, he always added, such work required large sums of money and contributions from conservative, substantial and public-spirited citizens were ever acceptable. At the end of each letter there appeared a suggestive paragraph pointing out the extent to which the prosperity of the New South was due to its "peculiar institutions" that made the worker race conscious instead of class conscious, and that with the passing of these "peculiar institutions" would also pass prosperity. This reasoning proved very effective, financially speaking.”

“When one-third of the population of the erstwhile Confederacy had consisted of the much-maligned Sons of Ham, the blacks had really been of economic, social and psychological value to the section. Not only had they done the dirty work and laid the foundation of its wealth, but they had served as a convenient red herring for the upper classes when the white proletariat grew restive under exploitation. The presence of the Negro as an under class had also made of Dixie a unique part of the United States. There, despite the trend to industrialization, life was a little different, a little pleasanter, a little softer. There was contrast and variety, which was rare in a nation where standardization had progressed to such an extent that a traveler didn't know what town he was in until someone informed him. The South had always been identified with the Negro, and vice versa, and its most pleasant memories treasured in song and story, were built around this pariah class. The deep concern of the Southern Caucasians with chivalry, the protection of white womanhood, the exaggerated development of race pride and the studied arrogance of even the poorest half-starved white peon, were all due to the presence of the black man. Booted and starved by their industrial and agricultural feudal lords, the white masses derived their only consolation and happiness from the fact that they were the same color as their oppressors and consequently better than the mudsill blacks.”