The first official observance was held 3 years after the Civil War ended at Arlington National Cemetary just outside of Washington, DC with about 5,000 people in attendance. It was originally observed on May 30th each year and it was referred to as "Decoration Day".
By the end of the 19th Century, it was known as "Memorial Day" as it is today. However, It was not until after World War I that the day was expanded to honor those who have died in all American wars.
In 1971, Memorial Day was declared a national holiday and it was decided that it would be celebrated each year on the last Monday in May.
“We should guard their graves with sacred vigilance. ... Let pleasant paths invite the coming and going of reverent visitors and fond mourners. Let no neglect, no ravages of time, testify to the present or to the coming generations that we have forgotten as a people the cost of a free and undivided republic.” ~ Gen Logan
It's been a tradition since the beginning that small American flags as well as Spring flowers be placed on each grave.
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*Excerpts taken from article published in www.indiancountrytodaymedianetwork.com
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