View Article  Robert Morris - Revolution Financier

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

The Bank of North America was connected above all with the name of Robert Morris. As superintendent of finance he controlled the finances of Congress for three years during the Revolution; he conducted profitable mercantile ventures while holding that office, and he had a dominant influence in the Bank of North America.

 

Since the bank was the only one of its kind, it had a financial monopoly, which the directors employed to crush all oppositions and to dominate trade. It promoted the concentration of wealth into a few hands, thus fostering the growth of aristocracy and the control of government by the few, rather than by the many.

 

James Warren wrote to John Adams, “Morris is a King, and more than a King, He has the keys of the treasury at his command, appropriates money as he pleases, and every body must look up to him for justice and for favor. With the impost under his control, he will have us all in his pocket.”

 

 

An Economic Interpretation of the Constitution of the United States by Charles A. Beard, 1913, Edited Excerpts

 

No man contributed more to the establishment of our Constitution than Robert Morris, “the Patriot Financier.” Robert Morris was a stupendous political force in Washington’s administration. Of all the members of the Convention, Robert Morris of Pennsylvania had the most widely diversified economic interests. He owned and directed ships trading with the East and West Indies, engaged in iron and manufacturing, bought and sold thousands of acres of land in all parts of the country, particularly in the west and south, and speculated in lots in Washington as soon as he learned of the establishment of the capital there. Had he been less ambitious he would have died worth millions instead of in poverty and debt, after having served a term in a debtor’s cell.

 

 

 

View Article  Constitution Ratified

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

If we try to form an estimate of the entire white population, the two sides appear to have been nearly equal in numbers. Of course in 1787-88 this was of no importance: what counted then was the ratification by nine states. Since the Federalists were a minority in at least six and probably seven states, they ought surely to have been defeated. Yet they came from behind to win.

 

Thus wealth and position supported the Constitution. On the other hand, lower ranking army officers and men of lesser economic and social distinction tended to be Antifederal; doctors were to be found on both sides. Combining all of this personal information, a division can be made as follows: men of high social, military, or economic position voted 107 to 34 for ratification, while those of lower status voted 126 to 61 against it.

 

The Antifederalists asserted that the Constitution created a consolidated government, and if this were so, the members of the Philadelphia Convention had violated their instructions. The convention had acted illegally.

 

We may conclude that if the Antifederalists had dominated the Philadelphia Convention, the government of the nation would have continued to be a confederation of sovereign states, and that the democratic principle of local self-government would have been emphasized.

 

 

Media Control

 

The pro-Constitution attitude of the newspapers was undoubtedly important. The number of papers which opposed ratification or even of those which presented both sides impartially was very few. This was natural, for the city people were overwhelmingly Federal, and the printers were influenced by local opinion as well as by their own convictions; moreover, it was profitable to agree with the purchasers and the advertisers.

 

The Federalist domination of news coverage permitted them not only to obtain more space for their own publications but to conceal or distort the facts. The objections of the Antifederalists were sometimes twisted so as to make them appear foolish; at other times it was denied that there was any opposition at all to the Constitution.

View Article  The Day Christ Died

Christ Series

 

Birth of a Religion

When supernatural events and human drama,

that coincide in timing and enormity,

are witnessed by many. 

 

Memoirs of Pontius Pilate by James Mills

Pontius Pilate: "The darkening of the sky and the coincidental occurrence of the earthquake proved to be as fortuitous for the subsequent growth of Christianity as the star and the coincidences surrounding the fellow's birth. It was the events that he and his followers could not arrange that have made the stories about him so appealing to common people."

The Wonderful Teacher by Elijah Brown

Hundreds of thousands of people were in Jerusalem, who had come from everywhere to attend the Passover. It is doubtful if any other death was ever witnessed by so many people. The sky was darkened, and the sun hid his face from the awful scene. A great earthquake shook the city; the dead came out of their graves, and went into the city, appearing unto many, and the veil of the temple was torn from top to bottom. No eye had been allowed to look behind the veil, except that of the high priest, and then only once a year, on the great Day of Atonement.

The Last Temptation of Christ by Nikos Kazantzakis

Jesus spread wide his arms and opened his mouth to cry, Brothers! but the soldiers seized him and hoisted him up onto the cross. Then they called the gypsies with the nails, but as the hammers were lifted and the first blow was heard, the sun hid its face; as the second was heard, the sky darkened and the stars appeared. 

The crowd was overcome with fright. The horses on which the Romans were mounted became ferocious. Rearing, they began to gallop furiously and trample the Jewry. Then earth, sky and air suddenly grew mute, as at the beginning of an earthquake.The world seemed to have fainted. Deathly pale, it was now just barely visible in the bluish darkness.

King Jesus by Robert Graves

About noon, when the soldiers had begun to prepare their dinner, a hot wind blew from the east and the sky darkened. It was not the wholesome darkness that heralds rain with the distant growl of thunder and flicker of lightning, but a smoky darkness such as terrifies those who live in the neighborhood of active volcanoes; and as the cloud spread across the sky as far as the western horizon, blotting out the sun, the earth began to heave sickeningly and a distant rumble and crash was heard as an enormous piece of masonry fell from the Temple into the valley below. A scream of terror went up and many fell on their knees and gazed upwards, believing that the Day of Wrath had come at last.

The Day Christ Died  by Jim Bishop

One of the soldiers walked around to a position in front of the cross and looked up into the agonized face of Jesus and said: " If you are the king of the Jews, then save yourself."

He looked into the sky, and others looked. There were no clouds. But the heavens had deepened from a pale azure to a deeper hue. The sky continued to darken. It was not a sudden thing; the color of the sky continued to deepen to a robin's-egg blue and then on to a darker blue.

The people forgot for a moment the three men on the crosses, and many in the crowd pointed to the sky. Some said that a storm was coming. The crowd began to break up, and many hurried toward the gates, the women flinging shawls over their heads and running with their children to get to shelter before the storm broke.

There was no sound of thunder. There were no lightning flashes. There were no clouds. The sky darkened until the sun could be stared at with the human eye. The blue deepened until the darkness of dusk descended over all. The darkness lasted for the rest of the day.

From Jesus' lungs came the final cry: "It is finished!" The body sagged on the cross. The earth trembled and a small crack fissured the earth from the west toward the east and split the big rock of execution and went across the road and through the gate of Jerusalem and across the town and through the temple, and it split the big inner veil of the temple from the top to the bottom and went on east and rocked the big wall and split the tombs in the cemetery outside the walls and shook the Cedron and went on the Dead Sea, leaving fissures in the earth, the rocks and across the mountains.

Ben-Hur by Lew Wallace

The country filled rapidly with all kinds of temporary shelters for the pilgrims of Passover. Every part of the world was represented among them – cities upon both shores of the Mediterranean far off as the Pillars of the West, river-towns in distant India, provinces in northernmost Europe. These representatives had all the same object - celebration of the notable feast. All to behold one Nazarene die.

Every few steps he staggered as if he would fall. A stained gown badly torn hung from his shoulders over a seamless undertunic. His bare feet left red splotches upon the stones. In inscription on a board was tied to his neck. A crown of thorns had been crushed hard down upon his head, making cruel wounds from which streams of blood, now dry and blackened, had run over his face and neck.

Next in the procession stalked a figure clad all in the golden vestments of the high priest. Policemen from the Temple curtained him round about; and after him, in order, strode the Sanhedrin, and a long array of priests.

There was a space upon the top of a low knoll rounded like a skull, and dry, dusty, and without vegetation. The knoll was the old Aramaic Golgotha – in Latin, Calvaria; anglicized, Calvary; translated, The Skull. Up on the knoll stood the high priest. Up the knoll still higher was the Nazarene, stooped and suffering, but silent. The wit among the guard had complemented the crown upon his head by putting a reed in his hand for a scepter.

The guard took the Nazarene’s clothes from him; so that he stood before the millions naked. The stripes of the scouring he had received in the early morning were still bloody upon his back; yet he was laid pitilessly down, and stretched upon the cross, the arms upon the transverse beam. The spikes were sharp and with a few blows, and they were driven through the tender palms; next they drew his knees up until the soles of the feet rested flat upon the cross; then they placed one foot upon the other, and one spike fixed both of them fast. 

The workmen put their hands to the cross, and carried it, burden and all, to the place of planting. At a word, they dropped the cross into the hole; and the body of the Nazarene also dropped heavily, and hung by the bleeding hands.

Suddenly a dimness began to fill the sky and cover the earth – at first no more than a scarce perceptible fading of the day; a twilight out of time; an evening gliding in upon the splendors of noon. But it deepened, and directly drew attention; whereat the noise of the shouting and laughter fell off, and men, doubting their senses, gazed at each other curiously: then they looked to the sun again; then at the sky and the near landscape, sinking in shadow; at the hill upon which the tragedy was enacting; and from all these they gazed at each other again, and turned pale, and held their peace.

The dimness went on deepening into obscurity, and that into positive darkness, but without deterring the bolder spirits upon the knoll. The third hour came, and still the people surged round the hill. They were quieter than in the preceding hour; yet at intervals they could be heard off in the darkness shouting to each other, multitude calling unto multitude.

A tremor shook the tortured body; there was a scream of fiercest anguish, and the mission and the earthly life were over at once. The multitude was informed of the circumstance. No one repeated it aloud; there was a murmur, which spread from the knoll in every direction; a murmur that was little more than a whispering, “He is dead.”

While they stood there staring at each other, the ground commenced to shake; each man took hold of his neighbor to support himself; in a twinkling the darkness disappeared, and the sun came out; and everybody, as with the same glance, beheld the crosses upon the hill all reeling drunken-like in the earthquake. They started to run; they ran with all their might; on horseback, and camels, and in chariots they ran, as well as on foot; but then, as if it were mad at them for what they had done, and had taken up the cause of the unoffending and friendless dead, the earthquake pursued them, and tossed them about, and flung them down, and terrified them yet more by the horrible noise of great rocks grinding and rending beneath them. They beat their breasts and shrieked with fear.

 

 

 
View Article  Brave New World

Orwellian Description of Torture

 

Kubark Manual Applied in Iraq

 

Iraq::Vietnam as  AbuGrabi::ConSonPrison

 

 

Brave New World Revisited by Aldous Huxley, 1958

 

Ivan Pavlov observed that, when subjected to prolonged physical or psychic stress, laboratory animals exhibit all the symptoms of a nervous breakdown. Refusing to cope any longer with the intolerable situation, their brains go on strike, so to speak, and either stop working altogether [the dog loses consciousness], or else resort to slowdowns and sabotage. Some animals are more resistant to stress than others. But even the most stoical dog is unable to resist indefinitely.

 

Pavlov’s findings were confirmed in the most distressing manner, and on a very large scale, during the two World Wars. As the result of a single catastrophic experience, or of a succession of terrors less appalling but frequently repeated, soldiers develop a number of disabling psychophysical symptoms. Temporary unconsciousness, extreme agitation, lethargy, functional blindness or paralysis, completely unrealistic responses to the challenge of events, strange reversals of lifelong patterns of behavior – all symptoms, which Pavlov observed in his dogs, reappeared among the victims of what in the First World War was called “shell shock,” in the Second, “battle fatigue.” Every man, like every dog, has his own individual limit of endurance. Most men reach their limit after about thirty days or more or les continuous stress under the conditions of modern combat. The more than averagely susceptible succumb in only fifteen days. The more than averagely tough can resist for forty-five or even fifty days. Strong or weak, in the long run all of them break down. All, that is to say, of those who are initially sane. For, ironically enough, the only people who can hold up indefinitely under the stress of modern war are psychotics. Individual insanity is immune to the consequences of collective insanity.

 

The fact that every individual has his breaking point has been known and, in a crude unscientific way, exploited from time immemorial. Physical torture and other forms of stress were inflicted by lawyers in order to loosen the tongues of reluctant witnesses; by clergymen in order to punish the unorthodox and induce them to change their opinions; by the secret police to extract confessions from persons suspected of being hostile to the government.

 

View Article  Philadelphia Convention of 1787

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

The Convention which assembled in Philadelphia in the late spring of 1787 contained only a handful of men who were opposed to a strong government and none who spoke out clearly for democracy. The Antifederalists who attended did not represent the rank and file of the party, but the propertied minority.

 

The struggle over the ratification of the Constitution was primarily a contest between the commercial and non-commercial elements in the population. This is the most significant fact, to which all else is elaboration, amplification, or exception. The Federalists included the merchants and the other town dwellers, farmers depending on the major cities, and those who produced a surplus for export. The Antifederalists were primarily those who were not so concerned with, or who did not recognize a dependence upon, the mercantile community and foreign markets.

 

As the delegates made clear the intent to establish a strong national government, the Antifederalists, one by one, drew back. The Constitution did not represent the views of the moderate Antifederalists. While the Antifederalists within the Convention were being gradually disillusioned, those outside viewed the assemblage with mingled optimism and apprehension

 

About half of all the delegates to the convention had seen some military service during the war, almost all of them as officers, but of the Antifederalists only one had held a rank higher than captain, whereas among the Federalists there were at least sixteen field officers. The ten members of the convention who belonged to the Society of Cincinnati were Federalists. Such facts as these imply that the Federalists came from higher social strata. This is suggested also by their superior education, for all of the college men in the ratifying convention were Federalists. The professions of the members also indicate the differences between parties. The great majority of the merchants, large manufacturers, lawyers, judges, and those with extensive holdings in land voted for the Constitution. Moreover [as George Bryant put it] “monied men, and particularly the stockholders in the bank were in favor of it.” Clearly the businessmen and creditors were Federal.

 

The Federalists dominated the towns and the rich valleys, they included most of the public and private creditors, great landowners, lawyers and judges, manufacturers and ship-owners, high ranking civil and military officials, and college graduates. Antifederalists rank and file were men of moderate means, with little social prestige, farmers often in debt, obscure men for the most part.

 

The Federalists held far more property, which is to be expected in view of the east versus west, rural versus urban nature of the division. In the convention were twelve men of wealth, of whom ten were Federalists; another half-dozen were well-to-do, of whom all but one were Federalists. The remainder, which included almost all the Antifederalists, had only moderate property.

 

In the Antifederal ranks at the convention were at least twenty-nine delegates who had actively participated in Shay’s Rebellion and several others who had attended county conventions. Indeed, a map showing the towns sympathetic with the Rebellion is almost identical with the one outlining the Antifederal area.

 

Of the delegates to the convention, very few Antifederalists were well-to-do, whereas many Federalists were men of wealth. Almost all of the public securities were held by Federalists. Merchants, shipowners, bankers, manufactuurers, lawyers, and judges were Federalists by a very large majority, as were generals, naval captains, and members of the Cincinnati; most college men were Federalists, and most ministers.

 

View Article  Orwellian Description of Torture

Brave New World

 

Kubark Manual Applied in Iraq

 

Iraq::Vietnam as AbuGrabi::ConSonPrison

 

 

1984 by George Orwell, 1948

Cover Design by Shepard Fairey

 

 

A few agents of the Thought Police moved always among them, spreading false rumors and marking down and eliminating the few individuals who were judged capable of becoming dangerous; but no attempt was made to indoctrinate them with the ideology of the Party. It was not desirable that the proles should have strong political feelings. All that was required of them was a primitive patriotism which could be appealed to whenever it was necessary to make them accept longer working hours or shorter rations. And even when they became discontented, as they sometimes did, their discontent led nowhere, because, being without general ideas, they could only focus it on petty specific grievances. The larger evils invariably escaped their notice.

 

There was a long range of crimes – espionage, sabotage, and the like – to which everyone had to confess as a matter of course. The confession was a formality, though the torture was real. How many times he had been beaten, how long the beatings had continued, he could not remember. Always there were five or six men in black uniforms at him simultaneously. Sometimes it was fists, sometimes it was truncheons, sometimes it was steel rods, sometimes it was boots. There were times when he rolled about the floor, as shameless as an animal, writhing his body this way and that in an endless, hopeless effort to dodge the kicks, and simply inviting more and yet more kicks, in his ribs, in his belly, on his elbows, on his shins, in his groin, in his testicles, on the bone at the base of his spine. There were times when it went on and on until the cruel, wicked, unforgivable thing seemed to him not that the guards continued to beat him but that he could not force himself into losing consciousness. There were times when his nerve so forsook him that he began shouting for mercy even before the beating began, when the mere sight of a fist drawn back for a blow was enough to make him pour forth a confession or real and imaginary crimes. There were other times when he started out with the resolve of confessing nothing, when every word had to be forced out of him between gasps of pain, and there were times when he feebly tried to compromise,.

 

Sometimes he was beaten till he could hardly stand, then flung like a sack of potatoes onto the stone floor of a cell, left to recuperate for a few hours, and then taken out and beaten again. There were also longer periods of recovery. He remembered them dimly, because they were spent chiefly in sleep or stupor. He remembered a cell with a plank bed, a sort of shelf sticking out from the wall, and a tin washbasin, and meals of hot soup and bread and sometimes coffee. He remembered a surly barber arriving to scrape his chin and crop his hair, and businesslike, unsympathetic men in white coats feeling his pulse, tapping his reflexes, turning up his eyelids, running harsh fingers over him in search of broken bones, and shooting needles into his arm to make him sleep.

 

The beatings grew less frequent, and became mainly a threat, a horror to which he could be sent back at any moment when his answers were unsatisfactory. His questioners now were not ruffians in black uniforms but Party intellectuals, little rotund men with quick movements and flashing spectacles, who worked on him in relays over periods which lasted ten or twelve hours at a stretch. These other questioners saw to it that he was in constant slight pain, but it was not chiefly pain that they relied on. They slapped his face, wrung his ears, pulled his hair, made him stand on one leg, refused him to leave to urinate, shone glaring lights in his face until his eyes ran with water; but the aim of this was simply to humiliate him and destroy his power of arguing and reasoning.

 

Their real weapon was the merciless questioning that went on and on hour after hour, tripping him up, laying traps for him, twisting everything that he said, convicting him at every step of lies and self-contradiction, until he began weeping as much form shame as from nervous fatigue. Sometimes he would weep a half dozen times in a single session. Most of the time they screamed abuse at him and threatened at every hesitation to deliver him over to the guards again; but sometimes they would suddenly change their tune, call him comrade, appeal to him in the name of Big Brother, and ask him sorrowfully whether even now he had not enough loyalty to the Party left to make him wish to undo the evil he had done. When his nerves were in rags after hours of questioning, even this appeal could reduce him to sniveling tears. In the end the nagging voices broke him down more completely than the boots and fists of the guards. He became simply a mouth that uttered, a hand that signed whatever was demanded of him. His sole concern was to find out what they wanted him to confess, and then confess it quickly, before the bullying started anew.

 

He confessed to the assassination fo eminent Party members, the distribution of seditious pamphlets, embezzlement of public funds, sale of military secrets, sabotage of every kind. He confessed that for years he had been in personal touch with Goldstein and had been a member of an underground organization which had included almost every human being he had ever known. It was easier to confess everything and implicate everybody. Besides, in a sense it was all true. It was true that he had been the enemy of the Party, and in the eyes of the Party, there was no distinction between the thought and the deed.

 

“You are a flaw in the pattern. You are a stain that must be wiped out. Did I not tell you that we are different from persecutors of the past? We are not content with negative obedience, nor even with the most abject submission. When finally you surrender to us, it must be of your own free will. We do not destroy the heretic because he resists us; so long as he resists us we never destroy him. We convert him, we capture his inner mind, we reshape him. We burn all evil and all illusion out of him; we bring him over to our side, not in appearance, but genuinely, heart and soul. We make him one of ourselves before we kill him. It is intolerable to us that an erroneous thought should exist anywhere in the world, however secret and powerless it may be. Even in the instant of death we cannot permit any deviation. In the old days the heretic walked to the stake still a heretic, proclaiming his heresy, exulting in it. Even the victim of the Russian purges could carry the rebellion, locked up in his skull as he walked down the passage waiting for the bullet. But we make the brain perfect before we blow it out.”

 

The espionage, the betrayals, the arrests, the tortures, the executions, the disappearances will never cease. It will be a world of terror as much as a world of triumph. The more the Party is powerful, the less it will be tolerant; the weaker the opposition, the tighter the despotism. Goldstein and his heresies will live forever. Every day, at every moment, they will be defeated, discredited, ridiculed, spat upon – and yet they will survive. Always we shall have the heretic here at our mercy, screaming with pain, broken up, contemptible – and in the end utterly penitent, saved form himself, crawling to out feet of his own accord. That is the world we are preparing. A world of victory after victory, triumph after triumph; an endless pressing, pressing, pressing upon the nerve of power.

 

View Article  Federalists Push for a Constitution

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

Arguments would not pay the debt, and if the impost were to be rejected, some alternative way to preserve the government’s credit had to be found.

 

Joseph Jones to Madison, June 7 1787: “One of the first objects with the national government to be elected under the new constitution, it is said, will be to provide funds for the payment of the national debt, and thereby to restore the credit of the United States, which has been so much impaired b the individual states. Every holder of a pubic security of any kind is, therefore, deeply interested in the cordial reception, and speedy establishment of a vigorous continental government.”

 

The Federalists were trying to bring about a major political change and were insisting that this change was essential. To justify the Constitution, it had to be proved that conditions were desperate and that extensive alterations in the government were imperative. Accordingly, they insisted that a serious commercial depression existed, that the credit of the United States and of the several states was endangered, that property rights were in jeopardy, that the states were disunited and weak, and that if the country were to become prosperous, respected, respectable, and safe, the Articles must be replaced by the Constitution.

 

The prospect that creditors could sue in the federal courts and recover claims in real money was particularly pleasing to creditors at a time when the collection of debts was exceptionally difficult. Creditors had encountered difficulties in collecting debts, threatened as they were with installment and tender laws, paper money, and even rebellion. The Constitution was, Federalists hoped, calculated to make men honest.

 

To the Antifederalists, there was no need for so drastic a cure as the Constitution. The Antifederalists believed that the Constitution created too strong a government. It was not so much any particular power which proved the danger, but the combination of control over taxation and the army together with the judicial powers. The Antifederalist wished to retain the Articles and to strengthen the Confederation.

 

While the Antifederalists denied that the Articles of Confederation had completely failed, they nonetheless admitted the need for reform. Nearly every individual who dealt with the problem believed that changes were necessary. The Antifederalists found themselves in a dilemma: at once accepting the necessity of change and denying the changes suggested, fearing to grant powers so great as those demanded by the Constitution, yet fearful of a total rejection. The Antifederalists were forced on the defensive, if not ratification, then what?

View Article  Fear of Aristocracy

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

That attempts had been and would be made to establish an aristocracy was shared by a large number of people, and it became a fundamental assumption of the Antifederalists. The Antifederalists were well aware that there were many men that were skeptical of the common man’s judgment to have any faith in a democratic system. They preferred an aristocracy – that is, government by the better sort of people, meaning themselves. If the new government favored the well-to-do, as some Antifederalists maintained, this was hardly an objection to those who were of the “better sort” themselves. The well-to-do might dislike an aristocracy in theory, but in practice, rule by the educated, well-bred, wellborn few was appealing.

 

New York Daily Advertiser: “Of all the evils which attend the republican form of government, there are none that seem to have more pernicious effects that the insolence which liberty implants into the lower orders of society.”

 

The trouble was that, in John Lloyd’s words: “Gentlemen of property” too frequently lost electoral contests to men from the “lower classes”; moreover things were getting worse rather than better as these lower classes demanded economic and political concessions. Shay’s Rebellion frightened the gentlemen badly.

 

The attempt to strengthen the central government was identical with the attempt to solidify upper class rule, and this they opposed. Antifederalists viewed a strong national government as a threat to liberty. From this standpoint a vital part of the proposed structure of power to be erected by the Constitution was section eight of the first Article, which endowed Congress with the powers once held by the state. This section was studded with such ominous words as “taxes,” “general welfare,” “commerce,” “Armies,” “necessary and proper.” Of them all, it was the first which attracted the most attention.

 

French Minister to the United States, Louis Otto, observed that the people were aware that an increase of power in the central government would mean a “regular collection of taxes, a strict administration of justice, extraordinary duties on imports, and rigorous executions against debtors – in short, a marked preponderance of rich men and of large proprietors.”

 

What they feared was not just the abstract transfer of authority from state to national government but the concrete transfer of power from the people to the well born. They were convinced that governments were usually run by an aristocracy, and that this government in particular was so constructed as to be certainly controlled by the few. Therefore they wanted power to be widely distributed among the states. Power concentrated led to aristocracy; power diffused, to democratic rule.

 

The time might come when Congress would oppress the people; and if anyone dared to defend the people, Congress, pretending to act for the general welfare, could construe their action as sedition. The President had been given too much power. He was, they asserted, an elective king, a prince under a republican cloak, vested with power dangerous to a free people.

View Article  Debt and Taxes 1780's

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

The major political controversy during the 1780’s concerned the payment of public and private debts. Even more important was the question as to what taxes should be levied to support the domestic debt of the state. Critics asserted that the mass of the people were being taxed to benefit the few, money was taken from the poor and given to the rich – at a time of economic depression. It is not surprising that the less well-to-do were resentful, and that many demanded some other mode of paying the debt.

 

The states were having trouble supplying their troops and meeting their financial obligations and were unable to pay Congress’s requisitions. Congress urgently needed money to pay the army and the interest on debt. Americans did not have to be reminded that control over taxation was the key to power, and that it had in the past and might now again result in despotism.

 

On one side were those counties with a high concentration of property, in which the creditor group was strong, and where the suffrage was unusually restricted. On the other side were areas in which the middle class was more powerful and the debtors more numerous. The merchant-lawyer eastern group, generally creditors, supported all measures to strengthen the Congress; the western farming group, generally debtors and termed Radical, supported few, if any, such measures.

 

 

Impost: To determine customs duties on, according to the kind of imports. A tax.

 

Congress first recommended the impost in the early spring of 1781. The impost was to continue indefinitely until the debt had been paid. Many feared that since Congress would continue to contract debts, the grant would be perpetual.

 

For the impost was not just an economic, but a political, measure. Congress, for the first time, would be granted the power over taxation. The result might prove fatal to liberty. One observer warned that the money raised by the impost might “pay our debts” but that the power it created “might destroy our liberties.” The fear of what might result from a change of government continued to be important throughout the decade.

 

The impost failed primarily because it offended those who feared a consolidation of power in the central government. Since the impost would enable Congress to pay its debts, it was certain to have a differential effect upon the interests of individuals and particular groups. Federal creditors were the most obvious beneficiaries. It was rejected by those persons who were to become Antifederalists, and the arguments they developed in opposition to the impost were soon to be employed in a greater debate.

View Article  Morgan and Bankers to the Rescue -- Repeating Story

Bear Stearns gets emergency funds

http://news.bbc.co.uk/2/hi/business/7296678.stm

14 March 2008

US bank Bear Stearns has got emergency funding, in a move that raises fears that one of Wall Street's biggest names is on the verge of collapsing. JP Morgan Chase will provide the money to Bear Stearns for 28 days with the Federal Reserve of New York's backing. JP Morgan is also trying to get long-term financing for Bear Stearns.

 

Central banks fight credit crisis

http://news.bbc.co.uk/2/hi/business/7289815.stm

11 March 2008

The world's largest central banks have launched their latest co-ordinated action to calm jittery credit markets. The US Federal Reserve, the European Central Bank and central banks in the UK, Canada and Switzerland will inject billions of dollars into money markets. The news cheered investors and US stocks surged more than 3% - their biggest one-day gain in five years. The injection of more than $200bn is aimed at easing the credit crunch and its impact on the wider economy.

 

The House of Morgan by Ron Chernow, 1990

 

On October 22, 1929, the president sent a frantic messenger to Lamont [Morgan Stanley] expressing concern about the "speculative situation which seemed to him to be running very wild." The next day panic selling hit selected blue chips, with Westinghouse dropping 35 points and General Electric 20. The balloon was about to burst. The following morning, Winston Churchill stood in the visitors' gallery of the New York Stock Exchange. Within the first two hours of trading, almost $10 billion was lost on paper. The drops posted were so sharp and the resulting shrieks so fearful that the gallery was closed by late morning.

 

Desperate men stood on the steps of Federal Hall, hands in their pockets, their hats pulled low, staring grimly ahead. They stood six deep outside the Stock Exchange. Having bought on margin, many investors were ruined outright. Newspapers noted a strange noise filtering through the canyons of the Street - a roar, a hum, a murmur. It was the cumulative sound of thousands of stunned people giving vent to their feelings. Violence was in the air.

 

The Morgan role in rescues was now automatic. The bankers' rescue on Black Thursday proved longer on symbolism than on substance. The men knew they couldn't prop up a collapsing stock market, so they tried to introduce liquidity and engineer an orderly decline. So they pledged $240 million to buy up assorted stocks and stabilize the market.

 

At the end of the trading day, the bankers regrouped for a second meeting and designated Lamont their spokesman. Almost at once, Wall Street began to issue bravely hopeful statements. The headlines in the Wall Street Journal the next morning featured not the crash but the rescue: "BANKERS HALT STOCK DEBACLE 2-HOUR SELLING DELUGES STOPPED AFTER CONFERENCE AT MORGAN'S OFFICE" $1,000,000,000 FOR SUPPORT." The market staggered through Friday and Saturday morning trading without a fresh crisis.

 

On Tragic Tuesday, October 29, investors looked back on Black Thursday as a halcyon time. On this worst day in market history, the ticker lagged two and a half hours behind. Unlike Black Thursday, Tragic Tuesday exposed the bankers' frailty. Lamont now faced a more hostile group of reporters. As if expressing a new bunker mentality, the Stock Exchange governors met on Tragic Tuesday in a basement room under the Exchange floor. The main topic was whether to shut the market. As in 1897, the group decided to shorten Exchange hours instead.

 

As it happens, the real remedial action that was taken came not from the old Wall Street club but by a force new to financial panics - the Federal Reserve. In late October, Jack chaired a meeting at the Morgan Library with George Harrison, Ben Strong's successor at the New York Fed, son of an army officer, a graduate of Yale and Harvard Law School. Harrison lowered interest rates and pumped in billions of dollars in credit to buoy banks with heavy loans to brokers. He bought up to $100 million in government bonds per day and made sure Wall Street banks had adequate reserves with which to deal with the emergency.

 

Wall Street tried to face the crash with stoic fortitude and treat it as a stern but salutary lesson. Everybody sounded philosophical. In late 1929, Lamont described the crisis as an unpleasant warning of no lasting harm: "I cannot but feel that it may after all be a valuable lesson and the experience gained may be turned to our future advantage. There has never been a time when business as a whole was on a sounder basis." This reasonable approach reflected a belief that the financial trouble had ended; in fact, it had just begun.

View Article  Shays' Rebellion Series

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

In 1786-87, unrest exploded in the famous Shay’s Rebellion [Massachusetts] that divided the state. The area in sympathy with the protest movement corresponded closely to that already defined as being “western.”

 

Upon the outbreak of Shay’s Rebellion, the almost universal reaction among men of means was to crush it. There might be indeed a few genuine grievances, but essentially they thought, or said they thought, that it was an uprising of the poor against the rich, made possible by the absence of an army, and designed to control the government and to annihilate all debts. The aid of Congress was promptly sought, and Congress responded by calling for troops, ostensibly because of an Indian threat. The disguise was not a very good on and was easily pierced.

 

 

Shay’s Rebellion and the Constitution by Mary Hull, 2000, Edited Excerpts

 

Shays' Rebellion - Conditions after the Revolutionary War

 

Shays' Rebellion - Yeomen vs Merchants

 

Shays' Rebellion - Debt and Taxes

 

Shays' Rebellion - Violence Ensues

 

Shays' Rebellion - Legislative Acts

 

Shays' Rebellion - Lighthorsemen and Regulators

 

Shays' Rebellion - Springfield Arsenal

 

Shays' Rebellion - Regulators Defeated and Reforms Passed

 

Shays' Rebellion - Constitution Ratified in Aftermath

 

 

 

 

 

View Article  1780's Post Revolution Depression

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

The depression was aggravated by a number of factors: pre-Revolutionary debts owed to the English and Scottish merchants which were exceedingly heavy. Most of the debt was held by Federalists, for the certificates were concentrated in the wealthier and the urban areas. Creditors, both public and private, tended to be Federal, while debtors were ordinarily Antifederal.

 

Wartime losses had been extensive. Losses suffered during the war, very heavy buying after the war, which drained the states of cash and created new debts, further debts contracted for expansion, crop failures, and a state war debt necessitated heavy taxation.

 

To acquire a farm often demanded a fairly large capital investment. A large proportion of farmers were in debt and were vulnerable to a depression. After the war, planters hastened to repair their plantations and purchase slaves, borrowing heavily. To some extent these new debts were justified, since they represented capital outlays, but the planters greatly overextended themselves, counting of good crops and high prices. Their situation was made worse by crop failures.

 

During the mid-1780’s, economic conditions grew worse. The scarcity of money, due in part to heavy exportations of gold and silver to England, resulted in bankruptcies among merchants and caused high interest rates. It became exceedingly difficult to pay taxes and private debts. By the end of 1784, the economic depression was severely felt. “The people were drove to desperation,” one writer admitted. The rapacity of the lawyers was regarded as contributing to the general distress, and it was suggested that the profession be abolished.

 

Debtors were forced to sell their property at a fraction of its true value. Debts were a factor which motivated farmers to take an interest in politics. As a debtor, the farmer hoped that the judicial process might be made more favorable to him. He demanded the more convenient location of courts, lower court costs and lawyer fees, laws obliging creditors to accept property at a “fair” value, the abolition of imprisonment for debt, and laws delaying the recovery of debts.

 

The principal economic hardship was suffered in the rural towns and countryside where the people were less able to bear financial losses. Mounting protest led to violence. There were riots among debtors in Massachusetts, New Hampshire, Connecticut, Rhode Island, Maryland, Virginia, and South Carolina.

 

Economic problems gave rise to political issues.

View Article  Class Distinctions 1780's

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

The Untied Sates consisted in the 1780’s of a number of sections and subsections, each with a distinctive social structure, economy, and set of political objectives. The existence of classes was clearly recognized, three were distinguished. They were, as Patrick Henry expressed it, the well-born, the middle, and the lower ranks. Property, not birth, was the major factor in determining class structure.

 

The well-to-do were greater and lesser planters, merchants in towns and in cities, speculators and landlords, lawyers and ship owners, “River Gods” and “manor lords” – each had particular economic and political aspirations. They did not always agree with one another, yet they did share similar attitudes toward property and politics.

 

The merchants and their allies were usually supported by those farmers who were producing for urban consumption or for export, and who recognized that their welfare depended upon commercial prosperity. The key here is not so much the size of the farm as its location with respect to the market. The great plantations, with their slaves and wealthy masters, developed along the rivers, not so much because of the alluvial soil as because of the transportation facilities.

 

Frontier farmers interests was not so connected with commerce. Typically, they were unable to produce a large surplus either because the land was inferior, or because they lacked the means [slaveless, for instance], or because they were too distant from a market. Since it was difficult to accumulate wealth under such circumstances, the vast majority were small property holders in a local society wherein wealth was more equally distributed.

 

Frontier society, from Maine to Georgia, did not include extremes of wealth and poverty. There was an embryonic class structure. Property was more equally distributed, and from the bottom to the top was but a short step. The men of the frontier wanted to keep it that way. Such people naturally subscribed to equalitarian or “leveling” principles, and held economic ideas favorable to debtors and members of the “middling sort” generally. It was out of such ideas that Antifederalism grew.

 

An Economic Interpretation of the Constitution of the United States by Charles A. Beard, 1913, Edited Excerpts

In an examination of the structure of American society in 1787, there were those whose economic status had a definite legal expression but were not represented in the Convention which drafted the Constitution.: [1] the slaves, [2] the indentured servants, [3] the mass of men who could not qualify for voting under the property tests, and [4] women, disfranchised and subjected to the discriminations of the common law.

 

In no state had the working-class developed a consciousness of a separate interest or an organization that commanded the attention of the politicians of the time. The working-class were outside the realm of politics, except in so far as the future power of the proletariat was foreseen and feared.

 

 

View Article  The Antifederalists

 

Constitution Series

 

The Anti-Federalists by Jackson Main, 1961, Edited Excerpts

 

They are called the Antifederalists, but it should be made clear at once that they were not antifederal at all. In reality, they were determined to preserve the Confederation, and the name was imposed upon them by their opponents, the so-called “Federalists.” The attachment to them of a word which denotes the reverse of their true beliefs, and which moreover implies that they were mere obstructionists, without any positive plan to offer, was part of the penalty of defeat. The victors took what name they chose, and fastened on the losers one which condemned them. Since the victory was a lasting one, the name and the stigma have endured.

 

As the year 1781 drew to a close, the people were increasingly able to turn their attention away from the war and consider who was to rule the country in peace. Each state witnessed a struggle between various sections and classes for political power, and the outcome had significant economic and social consequences. The Revolution had been fought primarily over the issue of taxation.

 

In order to guard against the tyranny of power and preserve popular rule, the men entrusted with power had to be kept responsive to public opinion. The Revolutionary generation needed only to recall events out of their own experiences: the behavior of the royal governors or of officials appointed by them; the failure of councilors and elective officers to heed the people’s will.

 

Independence was enthusiastically supported by the artisans and western farmers under the leadership of new men who aggressively seized the initiative. It followed that where property was widely distributed and an excessive concentration of wealth was avoided, a democratic or popular government was most agreeable. 

 

Today democracy is a sacred word, but in the Revolutionary era it aroused different emotions in different individuals. Rarely indeed did any nationalist, and Federalist, refer to it approvingly. Typically, what it represented was condemned. On the Antifederalists side, the word was almost always used with approval.