Revisionist Themes
In taking a comprehensive view of a city, an author sometimes makes observations which differ from the common view. Usually with special pride, sometimes a little sullen.
Book reviews often base their estimation of an author on those comments within the book which differ, for better or worse, from what others have taken as the common viewpoint. Otherwise, there is "nothing new and fresh". To save reviewers the trouble, here are a group of essays which contain what the author himself feels are somewhat unique viewpoints. They may be controversial, or just innovative. For the most part, of course, I believe what everybody else believes.Constitution-tampering is Unwise
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http://www.philadelphia-reflections.com/blog/1487.htm
What Do Unions Want?
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http://www.philadelphia-reflections.com/blog/1488.htm
Looking Beyond Cheap Oil
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http://www.philadelphia-reflections.com/blog/1489.htm
Rising (China and) Developing Nations
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http://www.philadelphia-reflections.com/blog/1491.htm
Philadelphia City-County Consolidation of 1854
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| Consolidation Map 1854 |
Philadelphia is still referred to as a city of neighborhoods. Prior to 1854, most of those neighborhoods were towns, boroughs, and townships, until the Act of City County Consolidation merged them all into a countywide city. It was a time of tumultuous growth, with the city population growing from 120,000 to over 500,000 between the 1850 and 1860 census. There can be little doubt that disorderly growth was disruptive for both local loyalties and the ability of the small jurisdictions to cope with their problems, making consolidation politically much more achievable. A century later, there were still two hundred farms left in the county which was otherwise completely urbanized and industrialized. For seventy five years, Philadelphia had the only major urban Republican political machine. By 1900 (and by using some carefully chosen definitions) it was possible to claim that Philadelphia was the richest city in the world, although this dizzy growth came to an abrupt end with the 1929 stock market crash, and the population of Philadelphia now shrinks every year. In answering the question whether consolidation with the suburbs was a good thing or a bad thing, it was clearly a good thing. But since Philadelphia is suffering from decline, it becomes legitimate to ask whether its political boundaries might now be too large.
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| Philadelphia Map 1762 |
The possible legitimacy of this suggestion is easily demonstrated by a train trip from New York to Washington. The borders of the city on both the north and the south are quickly noticed out the train window, as the place where prosperity ends and slums abruptly begin. In 1854 it was just the other way around, just as is still the case in many European cities like Paris and Madrid. But as the train gets closer to the station in the center of the city, it can also be noticed that the slums of the decaying city do not spread out from a rotten core. Center City reappears as a shining city on a hill, surrounded by a wide band of decay. The dynamic thrusting city once grew out to its political border, and then when population shrank, left a wide ring of abandonment. It had outgrown its blood supply. Prohibitively high gasoline taxes in Europe inhibit the American phenomenon of commuter suburbs. The economic advantage of cheap land overcomes the cost of building high-rise apartments upward, but there is some level of gasoline taxation which overcomes that advantage. Without meaning to impute duplicitous motives to anyone, it really is another legitimate question whether some current "green" environmental concerns might have some urban-suburban real estate competition mixed with concern about global warming. Let's skip hurriedly past that inflammatory observation, however, because the thought before us is not whether to manipulate gas taxes, but whether it might be useful to help post-industrial cities by contracting their political borders.
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| Philadelphia Map 1860 |
Before reaching that conclusion, however, it seems worth while to clarify the post-industrial concept. America certainly does have a rust belt of dying cities once centered on "heavy" industry which has now largely migrated abroad to underdeveloped nations. But while it is true that our national balance of trade shows weakness trying to export as much as we import, it is not true at all that we manufacture less that we once did. Rather, manufacturing productivity has increased so substantially that we actually manufacture more goods, but we do it with less manpower and less pollution, too. The productivity revolution is even more advanced in agriculture, which once was the main activity of everyone, but now employs less than 2% of the working population. This is not a quibble or a digression; it is mentioned in order to forestall any idea that cities would resume outward physical growth if only we could manipulate tariffs or monetary exchange rates or elect more protectionist politicians to Congress. Projecting demographics and economics into the far future, the physical diameters of most American cities are unlikely to widen, more likely to shrink. If other cities repeat the Philadelphia pattern, the vacant land for easy exploitation lies in the ruined band of property within the present political boundaries of cities, or if you please, between the prosperous urban center and the prosperous suburban ring.
Many American cities with populations of about 500,000 do need more room to grow, so let them do it just as Philadelphia did a century ago, by annexing suburbs. But there are other cities which have lost at least 500,000 population and thus have available low-cost low-tax land which would mostly enhance the neighborhood if existing structures were leveled to the ground. Curiously, both the shrunken urban core and the bumptious thriving suburbs could compete better for redeveloping this urban desert if the obstacles, mostly political and emotional, of the political boundary could be more easily modified. But that's also just a political problem, and not necessarily an unsolvable one.
http://www.philadelphia-reflections.com/blog/1573.htm
Second Mortgages Want to Be First
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| Chrysler Logo |
In a bankruptcy proceeding, there has long been a traditional conflict between the holders of first mortgages and the holders of second mortgages. It goes like this: since the holder of a first mortgage gets paid first, his incentive is to hurry up the process and get the money. The holder of a second mortgage, however, only gets paid what is left, so this party will normally wish to stall proceedings in the hope the market will improve and give the second mortgage a better payout. Normally, this sort of predictable dispute is covered by contracts, and in any event most banks hold both kinds of mortgages and are neutral about what is just and fair. In the current banking crisis, however, the major banks have developed an incentive to favor the second mortgage, so they have a new view of what is just and fair. Four of the largest banks hold a total of $440 billion of second mortgages, but have very few first mortgages because they were sold off in the securitization process. The banks mostly retained the function of servicing first mortgages, however, so they now have quite a conflict of interest.
Something like this seems to be going on with the resolution of the Detroit auto makers, with the difference that politicians tend to favor the interest of the auto workers in the bankruptcies because there are more voters to be influenced. And in the case of the auto companies, there are stockholders who will be wiped out by a bankruptcy unless the liquidation of the company assets produces enough cash to satisfy the creditors, secured and unsecured. After all, stockholders aren't creditors at all; they are owners of the company. No matter how things turn out, however, the secured creditors would normally have first call on whatever is salvaged. So, it's one class of secured creditor against another, or else it is the secured creditors against the "stakeholders", employees or any other unsecured creditor. If the government intervenes, there is the additional issue of the Fifth Amendment of the Constitution, which prohibits government from the "taking" of private property without just compensation. Representative Conyers of Michigan, whose political allegiance is not in doubt, has introduced legislation to prohibit lawsuits in these matters. So now, the prospect grows of a constitutional clash between Congress and the Supreme Court, over the Constitutionality of such a law which denies due process. So that gets us into the fourteenth amendment, too. If we look beyond the technicalities, the looming clash is between President Obama and Chief Justice Roberts. One of them wants to take money from secured creditors and make it available to someone with more political clout; and the other surely wants to preserve the sanctity of contracts, the rights of property holders, due process, and the right of the Supreme Court to declare contrary laws to be unconstitutional.
Unless someone backs off, the situation would seem to be as monumental as Franklin Roosevelt's Supreme Court-packing proposal. Because -- there is every reason to anticipate a 5-4 vote by the Supreme Court, a 5-3 vote if Justice Souter is not replaced by that time, and strenuous efforts to alter the balance.
http://www.philadelphia-reflections.com/blog/1631.htm
Special Education, Special Problems
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| School Bus |
President John Kennedy's sister was mentally retarded; he is given credit for immense transformation of American attitudes about the topic. Until his presidency, mental retardation was viewed as a shame to be hidden, kept in the closet. Institutions to house them were underfunded and located in far remote corners of a state. Out of mind. And while it goes too far to say there is no shame and no underfunding today, we have gone a long way, with new laws forcing states to treat these citizens with more official respect, and new social attitudes to treat them with more actual respect. We may not have reached perfection, but we have gone as fast as any nation could be reasonably expected to go.
However, any social revolution has unintended consequences; this one has big ones, surfacing unexpectedly in the public school system. For example, the king-hating founding fathers were very resistant to top-down government, so federal powers were strongly limited. So, although John Kennedy can be admired for leadership, the federal government which he controlled only contributes about 6% of the cost of what it has ordered the schools to do, and the rest of the cost is divided roughly equally between state and municipal governments. As the cost steadily grows, special education has become a poster child for "unfunded mandates", increasingly annoying to the governments who did not participate in the original decision. We seem to be waking up to this dilemma just at a time when the federal government is encountering strong resistance to further spending of any sort. The states and municipal governments have always been forced to live within their annual budgets, unable to print money, hence unable to borrow without limit. As Robert Rubin said to Bill Clinton when he proposed some massive spending, "The bond market won't let you."
The cost of bringing mentally handicapped individuals back into the community is steadily growing, in the face of a dawning recognition that we are talking about 8% of the population. Take a random twelve school children, and one of them will be mentally handicapped to the point where future employability is in question; that's what 8% means. Since they are handicapped, they consume 13% of the average school budget, and growing. The degree of impairment varies, with the worst cases really representing medical problems rather than educational ones. Small wonder there is friction between the Departments of Education and the Medicaid Programs, multiplying by two the frictions between federal, state and municipal governments into six little civil wars. An occasional case is so severe that its extreme costs are able to upset a small budget entirely by itself, tending to convert the poor subject into a political hot potato, officially described by everybody as someone else's responsibility. There are 9 million of these individuals in public schools, 90,000 in private schools. They consume as much as 20% of some public school district budgets.
All taxes are bitterly resisted in a recession, especially new ones. Unfortunately, the school budgets are under pressure everywhere by a growing recognition that our economic survival in a globalized economy depends on getting nearly everybody into college. Nearly everybody wants more education money to be devoted to the college-bound children at a time when there is less of it; devoting 13% of that strained budget to children with limited prospects of even supporting themselves, comes as a shock. Recognizing these facts, the parents of such handicapped children redouble their frenzy to do for them what they can. It's a tough situation, because simultaneous focus on specialized treatment for both the gifted and the handicapped is irreconcilably in conflict with the goal of integrating the two into a diverse and harmonious school community.
As school budgets thus get increasingly close scrutiny by anxious taxpayers, handicapped children come under pressure from a different direction. It seems to be a national fact that slightly more than half of the employees of school systems are non-teaching staff. Without any further detail, most parents anxious about college preparation are tempted to conclude that teaching is the only thing schools are meant to do. And a few parents who are trained in management will voice the adage that "when you cut, the first place to cut is ADMIN." Since educating mentally handicapped children requires more staff who are not exactly academic teachers, this is one place the two competing parent aspirations come to the surface.
Unfortunately, the larger problem is worse than that. When the valedictorian graduates, the hometown municipal government is rid of his costs. But when a handicapped person gets as far in the school system as abilities will permit, there is still a potential of state dependence for the rest of a very long life. The child inevitably outlives the parents, the full costs finally emerge. We have dismantled the state homes for the handicapped, integrating the handicapped into the community. But when the parents are gone, we see how little help the community is really prepared, or able to give.
http://www.philadelphia-reflections.com/blog/1806.htm
Taking Risks Demands Its Price
Someday, books will be written about who discovered what, and sold what, to make S & P futures suddenly go up and down 300 points in ten minutes on August 17, 2007, soon followed by violent volatility in many other markets. Confusion reigned for a few days, but within a week there was general agreement about the difficulty: the "spread" of interest rates between risky loans and very safe ones had been too narrow for months, and was reverting back to normal. Risk had been mispriced; a risky loan was just as risky as it ever was, as everyone should have realized. If the risky borrower was unwilling to pay higher interest rates, why would any lender bother with him? Since this had been obvious all along, why had lenders temporarily believed otherwise, charging rates scarcely higher for dodgy loans than for well-secured ones?
Alan Greenspan (in 1996) had called this question a conundrum, but it's getting easier to understand. The emergence of prosperity in one decade among 200 million impoverished Chinese had resulted in wealth which found its way into international markets, much like a gold rush or the discovery of oil. Sudden huge wealth often cannot be easily assimilated, hence was available to loan at cheaper rates. The globalization of world finance has vastly improved the speed of markets to absorb money gluts, but in this case had the unfortunate effect of spreading it out into less sophisticated corners of the world economy. It particularly affected residential mortgages, which proved to be the weakest link in the chain of lending and borrowing. Ten years of low interest rates pushed up the prices of existing homes, tempting builders to overcharge for new construction, and inexperienced buyers to pay those inflated prices with cheap mortgages. Between them, Congress and the banks had devised ways to exploit this situation, making the collapse worse when it came. The interest on home mortgages was preferentially tax deductible, so it became the favorite way to borrow. Banks made it easier to refinance at a lower rate as the spread gradually narrowed. To make it even easier, reverse mortgages converted home ownership into an ATM machine with tax deductibility. Because home prices were steadily rising, banks were willing to reduce down payments, on the assumption that home equity would soon rise to represent the amount formerly required as a down payment. As it would have, perhaps, if home owners had not promptly drained it out the back door of reverse mortgages. Second homes became a cheaper way to have a vacation; steadily rising prices encouraged outright speculation, called flipping. Congress reinsured mortgages, eventually most of them, through FNMA, and then pressured Fannie Mae to insist on spreading the joys of home ownership to people who could not afford the no-down-payment houses they were romanced into buying. Investment banks offered to buy the mortgages from the local originating banks in order to package them into securitized bundles, which thus deprived the originating banks of any incentive to reject eager buyers, no matter how dubious their credit standing. What is more, this process provided a conduit for spreading bad credit risk into the equity markets, including the equity of the banking system itself, and creating the temptation for hedge funds to start runs on the banks in novel forms. There once was a time when customers lined up at the bank door to make withdrawals in a bank run. Since investment banks obtain their deposits by borowing wholesale, they simplified the process of starting a bank run when the speculative process reversed. Which it did on August 17, 2007, possibly not spontaneously, but certainly inevitably.
Home mortgages were once loans for thirty years; even now, they extend for many years. Homeowners stay in one house for an average of seven years. For legal reasons going back two hundred years, they are non-recourse loans, meaning the house alone is at risk to the mortgage lender, who may normally not pursue the homeowner for assets other than the foreclosure, even if the other assets are considerable. In a housing bubble, this creates a special hazard for lenders during the inevitable decline of house prices back to normal. As house prices fall, as they should and will, many home owners will find it is cheaper to walk away from a foreclosure than to pay off the mortgage. It has been calculated that potentially as many as 50% of mortgages might eventually find themselves in this squeeze. The situation differs from a car loan, for example. Every new car is worth 20% less than the sale price, immediately after the sale. But this does not tempt car buyers to walk away from their loan, because the car loan is a recourse loan. The uncomfortable prospect is that financial reverses alone might not be the reason homeowners submit to foreclosure. If this particular antisocial behavior loses its stigma, a very large proportion of mortgages could be foreclosed on owners who are perfectly able to pay them off.
For all these reasons, house prices are the main bubble in an economy overstimulated by cheap money, and mortgage financing is at the root of a banking crisis. The banking system itself is precarious, because it too responded to the temptation of abundant credit at abnormally low interest rates. The process took the form of over-leveraging in order to magnify profits in a competitive market. Greed was not the only motivation; corporate raiders in the form of Private Equity could swoop down on any company unwise enough to accumulate internal cash. The new owner would then substitute debt for cash, and the prudent company (under new management, of course) was no better off than if it had itself over-leveraged. The Federal Reserve limits commercial banks to loaning thirteen times their stockholder equity, but investment banks had the foolhardiness to borrow thirty times equity. A decline of only three percent in the value of their loans, wipes them out. The Federal Reserve Bank of New York, by the way, is leveraged at over a hundred times its equity. The Fed can print money to pay its debts, of course, but the result is a falling value of the dollar in international exchange and ultimately, world inflation. No one predicts the half-way point in this decline to be sooner than two years, which means a recession lasting at least four years. The first two efforts of public officials to halt the decline, the purchase of toxic debt and direct lending to banks, have been abandoned as failures, and the Barney Frank/ Chris Dodd offer for Congress to repurchase mortgages was simply pathetic, with only two hundred responses when over two million were anticipated. If the public loses faith in the ability of the government to do anything about the matter, prices can be expected to overshoot on the downside, not just return to normal. House prices do need to decline, but slowly enough to avoid a panic. And American banks and businesses need to reduce the extent of their borrowing, but without measures which impair the ability of new businesses to make loans, or the ability of shaky businesses like the Detroit auto industry, to survive.
In closing, a word is needed to explain why the foreclosure of $100 billion of California and Florida bungalows should threaten a collapse in the trillions. Economists have fallen into the habit of equating interest rates with risk; the more risk, the higher interest rates become. That's true, but risk is not the only factor affecting interest rates. Since they are essentially the rent paid for the use of someone else's money, interest rates respond to the supply of money interest rates, just as supply and demand of rental housing affects rents. The flood of liquidity from developing countries into the world economy pushed interest rates down, but somehow that was taken to imply that risk had decreased. When interest rates go up again, for whatever reason, money will effectively evaporate. The best example of this relationship is in the bond market. When interest rates go up, the principle value of existing bonds declines. With interest rates of 5% as an example, bond prices go up and down twenty times as much as the interest rate, but in the opposite direction. To repeat: when general interest rates rise, money in the economy disappears about twenty times as fast. That's a succinct description of what started to happen, when the prevailing risk premium returned to its normal higher level, on August 17, 2007.
http://www.philadelphia-reflections.com/blog/1549.htm
George Washington Demands a New Constitution
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| Parson Weems |
GEORGE Washington was a far more complex person than most people suppose, and he wanted it that way. He was born to be a tall imposing athlete, eventually a bold and dashing soldier. On top of that framework, he carefully constructed a public image of himself as aloof, selfless, inflexibly committed to keeping his word. Parson Weems may have overdone the image a little, but Washington gave Weems a lot to work with and undoubtedly would have enjoyed the stories of the cherry tree and tossing the coin across an impossibly wide Potomac. Washington had a bad temper, and could remember a grievance for life. He married up, to the richest woman in Virginia.
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| Potomac River |
Growing up along the wide Potomac River, Washington early conceived a life-long ambition to convert the Potomac into America's main highway to the Mississippi. He did indeed live to watch the nation's capital start to move to the Potomac swamps across from his Mount Vernon mansion, into a city named for him. After he retired from military command with great fanfare and farewells after the Revolution, he returned to private life on this Virginia farm. During the years after the Revolution and before the new Constitution, his attention quickly returned to building canals along the Potomac, deepening it for transportation, and connecting its headwaters over a portage in Pennsylvania to the headwaters of the Monongahela River, hence the Ohio, then the Mississippi, or up the Allegheny to the Great Lakes. He personally owned 40,000 acres along this path to the center of North America. The opportunity for a national constitutional convention grew out of a meeting with Maryland to reach an agreement about this Potomac vision, which was being blocked by commercial interests in Baltimore. Ultimately, Baltimore won the commercial race. It was the Baltimore and Ohio Railroad which captured the commerce to the west. He made deals, ultimately for Baltimore benefit, with the James River interests, to give them their share of the development of Chesapeake Bay trade. As a young man, he had acted as a surveyor for most of this region, and as a young soldier, he had explored the Indian trade to Pittsburgh, actually started the French and Indian War along this trail, later marching it again with Braddock. And all the while, Washington dreamed of the day. There were competitors; Philadelphia and New York had similar aspirations for their own rivers.
Washington at age 54 was already richer than most people need to be; a lot of this Potomac dream was residual of boyhood ambitions enduring into middle age. In a sense, he had an ambition to make his boyhood home the future center of the universe. Although much of his stock in these real estate enterprises did not result in much wealth, he demonstrated his mixture of public spirit combined with ambition by donating the stock in one of the companies to a future national university, which was to be located across the river near Georgetown. Since that didn't work out, he later placed the nation's capital there. His had always been a somewhat bolder dream than merely to be Cincinnatus, citizen soldier returned home to his farm from the wars.
Washington did more or less gave up this Potomac ambition, but for a loftier one. During the Revolution, he suffered the deepest and most infuriating abuse of himself and his soldiers from the state legislatures, whom he grew to hate, as well as the Continental Congress representing state governments in a weak and nearly useless organization that would not feed and pay its own troops. He was a mean man to cross, but somewhere in his complex character Washington possessed the firmest and most sincere belief in the proper subservience of the military to civilian control. These conflicting feelings led to the most earnest and courteous obedience to a group of politicians he surely loathed. This could not have been hypocrisy; he respected their rank even though he suffered from their behavior. When Congress paid the troops in worthless currency they promised to redeem after the war, it became clear that either their lack of moral fiber or their system of governance led the states and the congress in the direction of dishonoring their debt to the soldiers. This was a dreadful system, which led to death and suffering among the loyal troops, forcing the General into the humiliating position of promising the troops Congress would stand by them, when he privately doubted any chance of it. Washington did not forgive or forget. This was a paltry result to achieve after eight years of war and suffering; this dishonorable system just had to be improved.
To achieve the change he desired, he went about it in a way which most people would not. He chose a young ambitious agent, James Madison, who had caught his attention in the Virginia legislature, in the Continental Congress, and in the negotiations with Maryland over the development of the Potomac. Washington schemed with Madison for weeks on end about ways and means, opportunities, dangers and potential enemies. A great many people, Patrick Henry in particular, wanted the central government to be as weak and ineffective as possible. John Jay in New York, by contrast, had argued so fervently for revisions of the Constitution that he deserves some mention for originating the idea. Madison was supposed to win over the Virginia legislature, make alliances with other states in congress, identify friends and enemies, make deals. Meanwhile, Washington felt it was useful to remain above and aloof, publicly wavering whether this was all a good idea. There was to be a Constitutional Convention in Philadelphia, but while Washington was invited, he let it be known he was uncertain whether he really should accept the invitation. What he really meant was he would preserve his political credibility for a different approach if this one failed to work out. Meanwhile, young Madison on several occasions came to Mount Vernon for three days at a time to talk strategy and give the General all the scoop.
Madison was a brilliant politician, a dissembler in a different way. To begin with, he was a scholar. Both as an undergraduate at Princeton and a graduate student working directly with the great Witherspoon himself, Madison was deeply learned in the history of classical republics. But he was also innately skilled in the manipulative arts of politics. When votes were needed, he had a way of persuading three or four other members to vote for a measure, while Madison himself would then vote against it to preserve influence with opponents for later skirmishes. In fact, as matters later turned out, it becomes a little uncertain just how convinced Madison really was that Washington's powerful central government was a totally good idea. Twenty years younger than the General. he prospered in the image of being personally close to the titan, and he certainly enjoyed the game of politics. The new Constitution was going to be an improvement over the Articles of Confederation, but Madison did not burn with any indignation about injustice to the troops, or any disdain for nasty little politicians in the state legislatures. The new Constitution was a project where he could advance his career, skillfully demonstrating his prowess at negotiation and manipulation. This is not to say he did not believe in his project, but rather to suspect that he was a blank slate on which he allowed Washington to write, and later allowed others to over-write. He was eventually to modify his opinions as a result of new associations and partners, and since he followed Jefferson as President, it became personally useful to modify his viewpoint. What would never change was that he was an artful politician, while Washington by contrast hated, absolutely hated, partisan politics.
This division is not just a difference between two Virginia plantation owners, but an enduring thread running through all elective politics. Washington set the style for generations of citizen leaders in America. In essence, a person of honor distinguishes himself in some way before he enters public office, and on the basis of that reputation plus the radiation of an honorable image, presents himself to voters for public office, is therefore elected to represent their interests. He is expected to compromise where compromise is honorable and publicly acknowledged, in order to achieve one desirable outcome in concert with other outcomes, in some ways inconsistent but still honorable in combination. He reliably will not vote for either issues or candidates in return for some personal consideration other than the worth of the issue or the candidate, with the possible exception of yielding to the clear preferences of his local district. Such a person is not a member of a political organization very long before he encounters another group of colleagues -- who regularly swap votes for personal advantage, or follow a party line, or join a group who agree to vote as a unit no matter what the merits, and acknowledge the frequent necessity to talk one way and secretly vote another. The first sort of politician is usually an amateur, the second type is typically a professional politician. Although it seems a violation of ethics and common public welfare, the fact is the professional vote-swapper will almost always beat the sappy amateur. The response during the Eighteenth Century was for idealists to condemn and attempt to abolish partisanship and political parties. The American Constitution does not make provision for political parties and other forms of vote-swapping or even anticipate their emergence. Although Madison started the process, Jefferson organized it and every politician except Adlai Stevenson has openly participated in a version of it. That the Constitution has not been amended to provide for parties seems to reflect a persisting nostalgic hope that somehow we can return to Washington's stance.
Washington's conception of representative politics was not entirely perfect, either. In order to maintain an image of impartiality, Washington and his imitators isolate themselves in a cloak, holding back their true opinions in a sphinx-like way that hampers negotiation. Unwillingness to be seen swapping votes can lead to unwillingness to compromise, and in the final analysis the difference is one of degree. However, the over-riding issue is that each representative or Senator is equal to every other one. When vote-swapping gets started, it leads to placing power over supposed equals in the hands of more powerful manipulators, masquerading as political leaders. Ultimately, it leads to the adoption of house rules on the very first day of a session which force lesser members to surrender their votes to a speaker or minority leader or committee chairman, when the theory is that there is no such thing as a lesser member. The final reality is that most legislatures must now deal with ten or twenty thousand bills per session, leading to the necessity of appointing someone to set priorities, which in turn leads to the power of party leaders over their grudging servants. These various subversions of the equal rights of elected representatives can lead to such discrediting of the system that honorable people may refuse to stand for office, leaving no one but professional foxes in charge of the hen house. Benjamin Franklin, who was to play an invisibly controlling role in the impending Constitutional Convention, had his own way of coping with the political environment. "Never ask, never refuse, and never resign."
http://www.philadelphia-reflections.com/blog/1538.htm
Obamacare Follies, Executive Summary
OBAMACARE FOLLIES
1. Mandates: Individual vs. employer. Neither one covers the "illegals". a. Individual mandate lays cost on young healthy, subsidizes older, people. b. Employer mandate costs small business, subsidizes large. c. Neither mandate addresses the tax issue which caused the problem. d. The illegals concentrate in five states bordering Mexico -- start there, don't leave it as a left-over. 2. Cost control: the CBO sank this legislation in one sentence. 3. Cost control: the Town Meetings angered people with good health insurance, who don't want to see it injured. That's 85% of voters. 4. Cost control:Taxing providers and suppliers only raises health cost. 5. Cost Control: Home care may no longer be cheaper than hospital care except as a reimbursement quirk. 5. Increasing access is incompatible with cutting costs. Choose, don't dissemble. 6. Health care is a problem, but does not create priority over two wars and the worst depression in eighty years -- none of which is now going well. Push the reset button.
THE PECULIARITIES OF OBAMACARE POLITICS
1. Required Reading: "The Road to Nowhere" by Jacob Hacker a. "Budget" Reconciliation. b. Cloture: terminating debate. c. Bob Dole: Public Option is a sacrificial feint. 2. Role of Gerrymandering a. Seniority puts extremists in control of Congress b. Gerrymandering puts moderates at greatest political risk. c. 2010 is a redistricting year, especially in New Jersey and Florida. d. Some political party will someday assert national party control over nominations to safe seats. 3. The hidden role of the Governors' Medicaid scam. 4. Small states need regional health insurance regulation; big states hate it. 5. The unconstitutionality (X Amendment) of mandates and the impeachability of presidential macing of political support.
WHAT OBAMACARE OUGHT TO SAY
1. Eliminate or modify the tax preference for employer-purchased insurance. 2. Repeal or modify the McCarran Fergusson Act to permit interstate insurance. 3.Restrict patents to those drugs which convince FDA of their unique value. 4. Mandate price/cost ratio to be displayed next to medical prices. 5. Pay hospital claims only after proof of transfer of responsibility after discharge. 6. Similarly, pay for lab charges for last day in hospital only after proof of reporting. 7. Override Maricopa Case of 1982 legislatively. 8. Restore the PSRO system. 9. Federally pre-empt anti-HSA state laws and regulations. 10. Subject Medicare debt to creditor disciplines: a. Suspend COLA and add-ons until proof of solvency. b. Merge Medicare and Medicaid, thus ending the cross subsidy.
http://www.philadelphia-reflections.com/blog/1727.htm
The King's Last and Final Word
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| King Charles II |
In 1662, King Charles II of England signed a charter, giving a strip of land in America to the inhabitants of Connecticut, that land stretching from the Atlantic Ocean to the Pacific. And then, eighteen years later, the same king signed a second charter, giving much the same land to William Penn. As lawyers say, these are the facts. In the many lawsuits, arguments and wars which followed, no one ever seriously raised the point that King Charles was unaware that he was giving the same land twice, so it must be assumed he knew exactly what he was doing, and did it on purpose. In fact, he did this sort of thing many times, in other cases. The legal disputes which this double-dealing inspired, are therefore entirely concerned with whether the King had a right to do it, and if so, whether that right would normally be recognized (i.e. durable) when we threw off the King and became a republic. The matter was considered by many courts many times, and in every single case, the judgment was in favor of Pennsylvania.
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| Oliver Wendel Holmes Jr. |
Consider Connecticut's probable attitude toward all this. The colony was settled by Calvinist dissenters, so-called Roundheads for their surprisingly contemporary haircuts, adherents of General Cromwell, executioners of King Charles I during English Civil War. They gave Old Testament first names to their own children, and had always known they couldn't trust that licentious King. Giving their land away after he had promised it to them was just about what they always expected. When, after seventy years of growing families of fifteen to seventeen children, they discovered that Connecticut soil was merely a pile of pebbles left by the glaciers and covered with a thin layer of topsoil, they became even more convinced that they had been cheated in the first place, and the bargain was no bargain. The reverse side of this enduring religious hatred will reappear in a few paragraphs.
The Proprietors of Pennsylvania, by this time no longer pacifist Quakers, but while descendants of William Penn, converted Anglicans and great friends with the King, took the matter calmly. The Connecticut lawyers were saying that if you sell or give away some land, it is no longer yours, so you can't give or sell it a second time. That is the modern view of it perhaps, but the English-speaking world was changing from a feudal, semi-nomadic, culture into a settled agricultural country where fixed boundaries were only starting to be important. That's where the world was going, but at either time King Charles gave away the land, it was more important for the King to be able to reward successful underlings, and punish rebellious tribes, as the situation warranted. Ownership of land was a nebulous thing at best, and the King was the best judge of how things should be divied up.
Oliver Wendell Holmes remarked in The Common Law, "The life of the law has not been logic, it has been experience." For life to go on and prosperity to endure, some decision must be made and held to, right or wrong. Stare decisis. That's fine for lawyers to say, but it must be observed that when people divide up on this question, where they stand depends heavily on where their ancestors stood on the English Civil War, and where their ancestors happened to be living during the so-called Pennamite Wars.
http://www.philadelphia-reflections.com/blog/1030.htm
Albert Gallatin: Enigma Furioso
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| Appalachia |
Abraham Alphonse Albert Gallatin
was born to a rich, famous and noble family in the French part of Switzerland in 1761, but soon became a rich orphan fleeing to America in the 1780s to escape overbearing and grasping relatives. He started out in America teaching French at Harvard, but soon purchased Friendship Hill, a 600 acre estate south of Pittsburgh along what was to become the National Road. At first, he ran a busy general store, but soon branched out into successfully buying and selling real estate. Although Uniontown now seems a lonesome hermitage in Appalachia, it was then part of the area disputed between Pennsylvania and Virginia, coveted by both states because it seemed like the main route to Ohio when Ohio was the Golden Frontier. Friendship Hill is now a National Park, near Fort Necessity, also near General Braddock's grave, and the birthplace of George Catlett Marshall. So it had its attractions, but Gallatin led such a frenzied life it is hard to believe he spent much time there. There is reason to believe he was one of the main instigators of the Whiskey Rebellion. Hamilton, and probably Washington, certainly thought so.
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| Albert Gallatin |
Almost immediately after arrival in America, Gallatin threw in his lot with Thomas Jefferson in resistance to the centralizing, Federalist, qualities of the new Constitution. Both of them were looking for more liberty than the Constitution offered. The movement they led became the anti-Federalist party and would have been the anti-constitution party except for reluctance to oppose the towering figure of George Washington. Gallatin's French loyalties seem to have overcome his aristocratic family background in supporting what enemies of the French Revolution had called Jacobin (or "Republican") notions. His Swiss background additionally gave him great credibility in high finance in backwoods America. In spite of being rather out of place among Virginia Cavaliers, his personal qualities seem to have made him a natural politician. He hated Hamilton's idea of the National Bank, arguing against it effectively in unsophisticated company. The issue was not so much opposition to banking, but to government dominance in central banking. He was certainly right that mixing the two created constant risk of inflation from yielding to political demands, an empirical observation almost without any exception for 800 years. However, it was too early in the history of central banking to perceive that it was debtor pressure which promotes inflation. Governments are almost invariably debtors themselves, whereas the elites he was attacking in general become creditors, resisting inflation. Inflation is merely a variant of defaulting on debts, which debtor governments happen to have at their disposal because they control the currency.
At this early stage of central banking, America was largely using its vast amounts of land as a substitute for money, but quickly adapted to Hamilton's new monetary system which was far more flexible. Gallatin later played a role in the chartering of both the Second and the Third Banks, although his motives here were somewhat different. (Government caps on interest rates induced the Banks to lend to only the best risks, which amounted to favoring Philadelphia over the frontier, Gallatin's main constituency.) He was appointed U.S. Senator for Pennsylvania at the age of 32, but was evicted on a straight party vote on the ground that he had not been an American citizen for the required nine years. It seems likely that accusation was correct. He was soon elected a Congressman, becoming Chairman of Finance (later called Ways and Means), then majority leader after five years. In retrospect, while it seems perplexing that a sophisticated financier would oppose a central bank, his opposition may have been mainly against having politicians operate one, a rather unavoidable consequence of government control. Hamilton's idea that deliberately going into debt was a way to establish "credit worthiness" was denounced as particularly offensive by those who disdained indebtedness as the most dangerous sin of commercial life. The anti-Federalists were clearly wrong on this point, but it is possible to sympathize with their suspicions. Even today, the unwillingness of banks to lend money to someone who has no history of previous borrowing is one of those things which seem so natural to bankers, and so irritating to apostles of thrift.
It remains unclear to history whether Gallatin had really never believed what he was saying, or had gradually changed his mind as he gained experience. He did confess or perhaps suddenly realize his error as the War of 1812 approached and he was Secretary of the Treasury. In this awkward event, he found himself charged with organizing the finance of a war with no way to do it. What was worse, Jefferson relentlessly pursued the closure of the National Bank for ideological, even fanatical, reasons; and Jefferson was the boss. The resolution of this conflict was to enrich Stephen Girard even further, while forcing Gallatin to a humiliating public reversal of stance. Nevertheless, America simply had to have a bank to fight a war. It is greatly to Gallatin's credit that his frenzied and obviously sincere entreaties to the bewildered Jefferson and Madison then saved the Nation from a disaster of foolish consistency. In a larger sense, the dramatic reversal of stance also played a role in shifting American sympathies from France to England. American sympathies were then wavering. On one side, there was gratitude to the French for bankrupting themselves with unwisely large loans to our struggling revolution, and for allying themselves with that revolution, soon imitating it with a revolution of their own against the common slogan, oppressive monarchy. True, there was more than a little hankering for annexation of large chunks of Canada. That was one side of it, which Lafayette, Girard, Gallatin and Jefferson labored to enhance, probably with their eye on French Quebec. On the other hand, there was that appalling genocide of the Jacobin guilloutine, which Napoleon soon threatened to extend to all European monarchies within his reach. The Seven Years War, which we called the War of the French and the Indians, had left memories in America that French ambition could extend from Quebec to Louisiana and include Haiti. The French once even occupied Pittsburgh, and their Indian allies had scalped settlers in Lancaster. That was not so long ago. Furthermore, the English invention of the Industrial Revolution was immensely attractive to artisan Americans. Ultimately, we made our choice for steady prosperous commerce of the British sort, rather than glittering glorious conquest, of the French style. By 1813, Gallatin had served longer as Secretary of Treasury than anyone before or since, and earlier had a more distinguished career as both Congressman and Senator than all but a few have ever achieved. When he was offered the position as a commissioner to negotiate the Treaty of Ghent ending the War of 1812, it was natural to expect that it would be the final act of his long political career. It was, however, only the beginning of a ten-year diplomatic career as Ambassador, first to France and then to England. Following that with still another new career, he took up academic work, returning to America to found New York University, personally establishing the academic discipline of study in Indian Affairs and language, and founding the American Ethnological Society. Gallatin wrote two books about Indian language patterns, and first suggested that the similarities between the languages of North and South American Indians probably meant they were related tribes. In another sphere, Gallatin is credited with originating the American doctrine of manifest destiny.
While skipping from one distinguished career to several others, Gallatin never forgot he was a banker. He wrote the charter for the Second National Bank ("Biddle's Bank"), plus the Third Bank of Pennsylvania, and founded the National Bank of New York, which was named Gallatin's Bank for a while, before gradually evolving into what is now called J.P. Morgan Chase Bank. As a diplomat, he negotiated many boundary disputes, including Oregon, Maine and Texas. He bitterly opposed the annexation of Texas.
When it comes to writing about Gallatin, there is so much to say it is hard to say anything coherent. He was such a virtuoso of public life that he defeats his biographers in their central task, of telling the world what he was like. There haven't been many, if indeed there were any, enough like him to offer a comparison. And yet history has not been kind to him. He can comfortably claim the title of the most famous American, that no one since has ever heard of.
http://www.philadelphia-reflections.com/blog/1329.htm
Cost of K-12 Education
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| Kids In the Classroom |
The April 11, 2010 edition of the Philadelphia Inquirer contained the thirteenth annual "Report Card" on schools of the eight-county Philadelphia metropolitan area. The report is eighteen newspaper pages long, mostly statistics, a real contribution to the area's understanding of itself in an important area of concern. Perhaps some future edition will take the data for a thirteen-year period and measure how things are changing over time, for better or worse. Trend analysis is often more illuminating than a snapshot of one moment in time; but requires uniform data definitions. Achieving uniform year-to-year definitions can itself cause some other problems. For example, the Pennsylvania figures for teachers' salaries makes a measurement cut at $80,000 per year, while the New Jersey data samples salaries over $75,000. It's therefore hard to compare salaries between the two states, but if you want to compare a district with itself over time, you have to continue to report it the way you did last year. It somewhat depends an whether you want to study the two state governments, or the individual school districts. Therefore, compromises of data collection made years ago, continue to be made for the sake of consistency. This sort of rough adjustment is just part of data management, and usually proves to have had an innocent beginning. Inflation and population migration similarly make it difficult to collect data year after year which will illustrate a meaningful trend in future decades. Sometimes you measure things at the state level because small but important trends just don't show up meaningfully in the smaller school districts. That's not a criticism, that's just the way it is.
Buried within the long columns, a few numbers do fairly scream for attention. Philadelphia's 163,647 school children are 87% non-white, a "minority" group that badly needs educational help if they are to become productive members of a globalized, service (non-industrial, non-farm), economy. Unfortunately, the City is stretched to spend $11,426 per student, the lowest average of any district in the 8-county area. The lowest, remember, of several hundred neighboring districts. At the same time, the City is fast approaching bankruptcy because its present tax level drives away business. The resulting unemployment raises welfare costs, and fosters higher expenditures on crime and punishment, drawing resources away from education. The credit of the City is shaky, so closing the gap by borrowing gets harder all the time; this is a terrible moment to experience an economic recession. If you dig into this data just a little, you get an important illumination. Philadelphia teachers' salaries are lower than 80% of the neighboring region, but compared with property values, they are in the middle of the range. We are in the middle of a recession, but worse still we are in the middle of a real estate recession, where most school taxes are based. Think that over; that has to mean property values are depressed in the City, and will go even lower if real estate taxes are raised. Alternatively, rising property values would result in rising tax revenue, and then the City could afford to pay teachers enough to attract them back into the City school system. Paying the lowest salaries for miles around almost certainly affects the quality of the teachers attracted to work here. At the moment however, the City doesn't dare raise taxes. But it also doesn't dare let the school system fall apart. The city has passed the tipping point where this will correct itself, and must somehow do something dramatic to get to the other side of that tipping point. Vehement union demands make it seem that all this problem needs is more money. That's far from enough; since it's hard to see where the money would come from, it's anyway vital to be thinking of nonfinancial solutions as at least as important as financial ones.
The school system doesn't show up very well in the statistics. More than half of the city high schools send less than half of their students to some kind of college. Leaving college quality to one side, only one of the hundreds of eight-county school districts also sends fewer than half its class to college; most of them send 80-90%. And the one non-Philadelphia school district in the region which sends only 38% to college is the City of Chester, which has problems similar to those of Philadelphia. Outside the city limits, this metropolitan region is doing fairly well in the struggle to educate its next generation for a globalized economy. But unless something pretty dramatic is done, the inner city will not be able to cope with low-cost foreign labor, nor will it be suitable for the better paying jobs, while employers could actually be starving for educated labor, but totally unable to make use of uneducated job applicants, once the recession is over.
For centuries, Philadelphia subsidized the farm regions of Pennsylvania, in the sense that it contributed more state tax revenue than it received back in benefits. Ever since World War II, however, the rest of the state has been subsidizing Philadelphia, and hates this situation with a lethal political passion. During the last half of the 19th Century and particularly with the automobile in the early 20th Century, the agricultural workers of Central Pennsylvania have migrated to the the city to take industrial jobs. There is no going back; agriculture now only employs 2% of the nation's population, industrial employment is going in the same direction. The former agricultural/industrial workers must somehow get themselves educated enough to face the new challenges. We have twelve million illegal immigrants in America; the appalling thing is to hear we may need their labor, because somehow twelve million legal immigrants aren't up to the task. Once they get mixed up with recreational drugs and the criminal justice system, what little chance they had for advancement rapidly fades. The Chinese tackled this same problem by forbidding reproduction. Industrial Europe tackled this problem with famine and wars. Because Americans can't even discuss such approaches, it looks as though there is nothing to do, but that isn't so. We've just exhausted our traditional approaches.
During the 19th Century, for example, the Catholic school system of Philadelphia was one of the wonders of America. That's what Cardinal John Henry Newman was all about, and he richly deserved to be sainted. For reasons remote from this discussion, the Catholic Church school system lost considerable vigor in America. That sad process seems to be continuing a downward spiral, so it's doubtful it will revive soon. Perhaps the charter school approach can fill the void, perhaps a voucher system of school choice has something to offer. Meanwhile, Catholic schools are feeling a drop in enrollment, some are closing; the most common complaint is that the current recession in the economy has made the tuition to Catholic schools a serious handicap to competing with charter schools in their neighborhood, where the education is said to be at least as good, and free. A shorthand description of the politics here is the public school teachers union fear vouchers for school choice, and the Catholic schools fear tuition-free charter schools. What might be helpful would be a realignment of incentives within a voucher system which would benefit all three school choices instead of victimizing the public schools; standardized testing at least opens the way to devising a reward system to inform the flow of public subsidies. No one is interested in a system like that in France, where every student in every school is looking at the same page of the same textbook every day. The goal is to reward objective educational improvement, under any or all management structures; and the main problem is to be objective about the measurement of it.
Maybe we should legalize recreational drugs, but then maybe we should legalize recreational crime; bad ideas will always come forward in a crisis, and someone must have the fortitude to reject them. And someone has to have the fortitude to face down the Teachers' Unions; it were better if that someone is black. Someone must face down organized crime, quite regardless of the crime product popular at the moment; it were better if that someone could be of Italian extraction. Right now, it looks as though the state government of New Jersey came close to being dominated by an informal network of gamblers, criminals and public service unions. We are close enough to watch with awe as a former prosecutor takes a meat axe to what he learned when he was an investigator. One hopes for his success, while watching uneasily to see if he can himself remain within legal norms. Philadelphia remains of the mind set of buying its way out of the education problem; that's not going to work.
For one thing, it seems to have been unsuccessful in neighboring Camden. Once more referring to the Inquirer's educational report card, Camden produces some documented warnings. Camden spends $16,131 per pupil, about half again as much as Philadelphia. Camden teachers are paid in the top quintile for the state, class size is nearly the smallest in the state. About 88% of the money is contributed by the state government, which temporarily at least solves that particular issue. In spite of this spending, Camden has the highest crime rate in America, its school population remains 99% nonwhite, only 38% of those who struggle to high school go on to college, and their SAT scores are the lowest or nearly the lowest in the state. Perhaps in time the education will improve; there is little sign the economics of the city have improved. Lots of abandoned building have been torn down, nothing new has been constructed except with public tax money. Money may be necessary for urban revival, but it certainly is not the central solution. Until the politics improve, there is little likelihood that civil society, non-government organizations, can produce the leadership so strikingly missing. Corrupt government must at least get out of the way.
Because more money without civic engagement probably cannot solve the problem, gimmicks to beg or borrow money may be a distracting blind alley. Philadelphia consolidated the city with the surrounding suburbs 150 years ago. That seemed for a while to bring prosperity, but its instability in the face of declining resources is one of the main reasons the 1929 depression was so particularly destructive to overextended Philadelphia. The city was no longer right-sized for its population. When the urban population fled to the far suburbs, not only was further political consolidation impossible, the intervening deserted areas of West Philadelphia, Germantown and North Philadelphia became slums, so large in area as to be beyond all hope that population growth could soon fill them. As you travel on Amtrak either north or south, the border between Philadelphia slum and suburban greenery is sharply visible at the artificial political borders. The slums grew outward to the border and stopped, the suburbs grew inward to the border and stopped. If the borders moved closer to City Hall, the suburbs would follow; just look at Conshohocken. There's little likelihood of that happening soon, and most of the reason is the present centrifugal mindset of the populace. In their view, the further out you go, the richer you will get. When reality sets in on that particular delusion, perhaps the matter can be re opened. The point right now is that we tried to make the suburbs support the urban core, once, and that opportunity is all worn out. It would be much more useful, not necessarily easier, to introduce some civility into state government.
http://www.philadelphia-reflections.com/blog/1799.htm
Pea Patch Island
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| Fort Mifflin |
There's a tradition that a boatload of peas ran aground on the mudflats of Delaware Bay near Salem in the Sixteenth Century, turning the flats into a patch of peas. In any event, the island is known to have been growing in size for centuries, and now is home to about 12,000 families of Herons. The number of mosquito families has not been accurately counted as yet, but they are even more numerous. The island doubled in size when the Army Corps of Engineers built the present Fort Delaware on it in 1847-59.
The War of 1812, which included the burning of Washington DC and bombardment of Baltimore, propelled America into a frenzy of coastal defense, and the first fortification of Pea Patch Island took place in 1813. A plan was adopted by Congress in 1816 to build 200 coastal forts, and about forty of them were actually completed by the time of the Civil War. These forts all had a similar appearance; the most notable example of the style was at Fort Sumter near Charleston, South Carolina, which was nearly complete by the time of its famous bombardment. In fact, it was first hastily occupied by Northern defenders arriving just in time to be evicted. In essence, these forts were huge walls of bricks with a concrete outer shell, holding a couple dozen very large cannons and a parade ground.
The new river defenses of Philadelphia were to be provided by three forts, Fort DuPont at the mouth of the old Delaware-Chesapeake canal, Fort Delaware on the island, and Fort Mott on the New Jersey side. You can now take a ferry ride to all three, between April and September; it's a pleasant afternoon excursion. Not so many years ago, you had to go into an ominous little taproom in Delaware City and ask in a loud voice if someone wanted to take you to Pea Patch in a fishing boat. The scene was reminiscent of old movies about derelicts hanging out in Key West, complete with George Raft and Earnest Hemingway, but now the National Park Service has given it the characteristic NPS spruce-up, with pamphlets and rest rooms.
The place never had any serious military activity except when it was used to house Confederate prisoners after the Battle of Gettysburg. Over 12,000 prisoners were brought there, and there were about 3000 deaths among them. Historians have compared the treatment of Confederate prisoners with the treatment of Union prisoners at Andersonville, Georgia, and it would be hard to say which place was worse. There are certain diseases of poor sanitation, like typhoid, cholera, amoebic and bacillary dysentery, and hepatitis, which decimate all concentration camps at all times. And adding to them the mosquito-borne diseases of both Delaware and Georgia at the time, you don't really need to assert prisoner mistreatment to account for the morbidity and mortality. Undoubtedly there was some of that.
http://www.philadelphia-reflections.com/blog/880.htm
The No-Doctrine Doctrine
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| quaker |
Although Quakers have long been famous for good relations with the Indians, both groups strongly prizing simplicity and keeping your word, few Indians converted to Quakerism. Indians would attend the silent meetings and listen respectfully, but in the end Christian converts were far more likely to convert to the Moravian Church. To resist defining your common beliefs creates automatically a problem for explaining what you believe. It becomes acceptable to believe a wide range of things, but it is also acceptable to believe very little. Not surprisingly, the two great religious schisms of the Quakers have broken their unity on just this point.
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| PA History |
The first great Quaker schism was created by one George Keith (1638-1716), who was born a Presbyterian and died an ordained Episcopalian. For several decades however Keith was one of the foremost leaders of the Pennsylvania Quakers, partly as a result of being just about the best educated man of the Colony. His leadership however led him to crave a more defined set of Quaker doctrines, and when he carried this idea too vigorously, he eventually encountered implacable opposition which in time caused him and his considerable number of followers to be expelled from the Society of Friends. (George Keith should not be confused with Sir William Keith, whom Hannah Penn appointed as governor of Pennsylvania in 1717.)
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| Elias Hicks |
The first great schism was thus about whether there might be too little defined doctrine in Quakerism. The second great schism by contrast grew out of the feeling there was too much doctrine. Led by Elias Hicks in 1830, the Hick sites split off from mainstream Quakerism in a quest for more simplicity, less religiosity, more silent contemplation of the Inner Light. In a sense, the outward show of protest in the black hats, plain dress, plain speech had provoked a reaction that these things were no longer simple, they were ostentatious. Too many people were being "eldered", too many people were being "read out of meeting" for violating doctrinal rules.
Curiously, both rebels were cast out, but over each following century the church as a whole gradually adopted what was largely their view of things. After Keith, Quakerism became more rigid and formalized. After Hicks, it became more mystical and free-thinking.
By insisting that in spite of turmoil it caused no doctrine was to be defined, Quakers have edged into the negative position of defining what they are not. Unlike the early sects of Christianity, Quakers have discarded the hope of miraculous divine intervention as a reason to behave in a Friendly Christian way. No one is apparently going to revive your bones from the tomb, feed your multitudes with forty loaves, or descend from Heaven and drive your enemies into the sea. Neither a later reward in Heaven nor a forthcoming everlasting punishment in Hell can be regarded as either very likely or much of an incentive to good behavior. Other religions may believe these things and might even turn out to be right, but Quakers feel the unembellished Golden Rule is a sufficiently understandable motive for conduct.
And gentle indirection is often a better way to persuade others than thundering oratory. The story is told of a visitor who found himself in a Quaker gathering, and made polite conversation by asking what the Quaker position was on the Trinity. A sweet old gentleman is said to have smiled and said, "We believe in the following Trinity: The brotherhood of man, the fatherhood of God -- and the neighborhood of Philadelphia."
http://www.philadelphia-reflections.com/blog/796.htm
Children's Scholarship Fund
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| Children's Scholarship Fund of Philadelphia |
Ida Lipman recently visited the Right Angle Club, to acquaint members with the nature of its new charity, the Children's Scholarship Fund of Philadelphia. This fund is a response to a rising feeling that the nation's leading social problem lies in upgrading the educational strength of the new generation of poor people, who are increasingly at a disadvantage working in unskilled jobs against foreign competition in a globalized economy. Poor people will never rise out of poverty by taking jobs that foreign competitors are willing to perform at even lower wages. And while everyone hopes poor people can take on better-paying jobs, it requires better education to do it.
The educational problem of motivating children to higher attainments than their parents is a difficult social task in both urban and rural districts, but peer pressures to hold down their classmates seems stronger or at least different in the urban settings. In both environments, of course, the educational attainments of both the parents and the teachers have been aimed at a lower level than the task requires. It somehow proves unrealistic to shift expectations as rapidly as we need to, and we are lucky that philanthropic donors have been willing to test out some radical experiments in the whole educational experience, including students, teachers and parents.
Thus, the Children's Scholarship Fund has been willing to dispense several thousand scholarships to private schools in the Philadelphia region, purely by lottery, without regard to the traditional basis of merit. This policy would probably be disruptive if scholarships were universally available, undermining the spirit of meritocracy which is so central to our educational system. But since we are only partially addressing the failures of a system of universal free public education, a stronger argument can be made that changing the culture occasionally requires that we set aside the incentive of overtly rewarding the behavior we seek. The hope is that a demonstration project with such a radical change will set other motives into motion. Resources are limited; it is recognized that among the ninety percent of students who fail to receive the scholarship by lottery, there will be many who are more talented than the few who are lucky enough to get an award. The point is easily overlooked however that these scholarship students must apply for the lottery, and be supported for partial financial assistance by their parents. These parents must sincerely want to raise the educational goals of their children, and convey that motivation to the kids in whatever way they are able to convey it. The pressure of less lucky playmates and neighbors to hold them back, it is hoped, will be lessened by the simple recognition that a lottery gives everyone an equal chance, provided they step forward and pledge themselves to try to succeed.
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| John Walton of the Wal-Mart family |
It's a bold and imaginative approach, a highly counter-intutitive one. John Walton of the Wal-Mart family matches the contributions of other donors at fifty cents on the dollar through his family foundations, which was jointly founded with Ted Forstman of the Wall Street firm. Many longitudinal studies will eventually show how much this bold and charitable venture really helps the students and the community; since it is private money in use, criticism should be held back until the results begin to be apparent. To whatever degree and in whatever way the scholarship fund is a success, the public must be willing to praise both its spirit of generosity, and its willingness to take a chance. Let's all mark this down in our notebooks, to see how it all turns out in ten or so years.
http://www.philadelphia-reflections.com/blog/1746.htm
Tour of Duty in 'Nam
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| Vietnam War |
Col. Dan McCall talked to the Right Angle Club about wartime experiences in Vietnam recently. He really didn't want to, thought he was being asked to talk about retirement planning, or asset allocation, or something else he knew something about. But the Program Chairman this year is also a Colonel, and wasn't about to be talked out of it; he wanted Vietnam, sir, and nothing else. So, for the first time in forty years, he did. He hadn't talked about it with his family or, during a career rising from Lieutenant to Colonel, with his associates in the National Guard.
Perhaps a little slow and fumbling at first, we heard of going to a place where it's 120 degrees in the shade, every day. Where he fainted from a heat stroke on the first day off the plane in Saigon, and soon found that it happened to everyone. Within thirty days, every single person had dysentery. The plane that lands troops in Saigon doesn't turn off the engines, and takes off as soon as the last man deplanes. As well it might, because it attracts sniper fire as it takes off. Once there, the only form of transportation for anyone going anywhere is by helicopter; plenty of peasants with chickens in their laps are taken along, too.
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| Ho Chin Minh Trail |
His unit, the 82nd Airborne, was deployed to the west of Hue, the ancient capital. The country is near the border with North Vietnam, and the land is a fairly narrow strip between the ocean and the Laotian border. The Ho Chi Minh trail, where the enemy comes from, is just over the border inside Laos. Our troops never go there, but B-52 bombers go there plenty, leaving impressive craters in the ground. The unit was mortared every night, and rockets made an impressive noise as they went overhead toward Hue. The American forces almost never went out at night. Deployments in the jungle lasted 45 days, without baths or toilets; mostly, you walked into the enemy by accident on the trail. One of the prizes was a Chinese officer, carrying much better maps of the region than the American Army had. One night, sniper fire seemed to be coming from a small island in the river, and the response was to send thousands of shells back, filled with 3-inch steel darts. The next morning, every tree on the island was normal enough on the Laotian side, but nearly covered with steel darts on the Vietnam side. Although the command from headquarters was to report a body count, there were no bodies to count. At the end of one 45-day deployment, there had been no food or water for three days. When the "ships" came to take them out, there was a celebration with rice wine. You make rice wine by soaking stalks of rice in water, letting it ferment. The water is pretty murky to begin with, and gets worse as it ferments; you have a good time, anyway, with the villagers bringing in a pig to roast.
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| 82nd Airbourne |
The CIA had its own private army, Rangers and Special Forces. There were local mercenaries, mostly from Thailand. The 82nd Airborne -- The All American Division -- had a tradition of parachute jumping in every military engagement since World War II, but in the jungle there was no place for, or point in, jumping. But at the end of their deployment, they jumped once, anyway. When you got home, the movies were kind of a joke, but Apocalypse Now came close to giving the right feeling. Although of course people asked what it was like, you didn't talk about it. No one did.
One member of the Right Angle Club who had spent a year there, muttered an answer. "And people didn't really want to hear about it, either."
http://www.philadelphia-reflections.com/blog/1717.htm
Original Intent and the Miranda Decision
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| Ernesto Arturo Miranda |
At the lunch table of the Franklin Inn Club recently, the Monday Morning Quarterbacks listened to a debate about Guantanamo Bay, prisoner torture and police brutality; all of which centered on the Supreme Court decision known as Miranda v Arizona. Ernesto Arturo Miranda was convicted without being warned of his right to remain silent, sentenced to 20 to 30 years in prison in 1966. Eventually, the U.S. Supreme Court, with Chief Justice Earl Warren writing a 5-4 decision, overturned the conviction, because Miranda had not been officially warned of his right to remain silent. The case was retried and Miranda was convicted and imprisoned on the basis of other evidence that included no confession.
An important fact about this case was that Congress soon wrote legislation making the reading of "Miranda Rights" unnecessary, but the Supreme Court then declared in the Dickerson case that Congress had no right to overturn a Constitutional right. Some of the subsequent fury about the Miranda case concerned the legal box it came in, with empowering the Supreme Court to create a new right that is not found in the written Constitution. Worse still, declaring it was not even subject to any other challenge by the other branches of government. In the view of some, this was a judicial power grab in a class with Marbury v Madison.
Several lawyers were at the lunch table on Camac Street, seemingly in agreement that Miranda was a good thing because the core of it was not to forbid unwarned interrogation, but rather a desirable refinement of court procedure to prohibit the introduction of such evidence into a trial. The lawyers pointed out the majority of criminal cases simply skirt this sort of evidence, use other sorts of evidence, and the criminals are routinely sent or not sent to jail without much influence from the Miranda issue. Indeed, Miranda himself was subsequently imprisoned on the basis of evidence which excluded his confession. What's all the fuss about?
And then, the agitated non-lawyers at the lunch table proceeded to display how deeper issues have overtaken this little rule of procedure. This Miranda principle prevents police brutality. Answer: It does not; it only prevents the use of testimony obtained by brutality from being introduced at trial. Secondly, Miranda contains an exception for issues of immediate public safety. Answer: What difference does that make, as long as the authorities refrain from using the confession in court? The chances are good that a person visibly endangering public safety is going to be punished without a confession. Further, the detailed procedures within Miranda encourage fugitives to discard evidence before they are officially arrested in the prescribed way. Answer: If the police officer sees guns or illicit drugs being thrown on the ground, do you think he needs a confession? Well, what about Guantanamo Bay? Answer: What about it? We understand the prisoners are there mainly to obtain information about the conspiracy abroad and to keep them from rejoining it. The alternative would likely be their execution, either by our capturing troops, or by vengeful co-conspirators they had incriminated.
Somehow, this cross-fire seemed unsatisfying. The Miranda decision was made by a 5-4 majority, meaning a switch of a single vote would have reversed the outcome. The private discussions of the justices are secret, but it seems likely that some Justices were swayed by this edict viewed as a simple improvement in court procedure rather than a constitutional upheaval; Justices with that viewpoint feel they know the original intent and approve of it. Others are apprehensive the decision has already migrated from original intent, in an alarming way. Everyone who watches much crime television, and even many police officials feel that Miranda intends for all suspects to be tried on the basis of total isolation from interrogation from start to finish. More reasoned observers are alarmed that the process of discrediting all interrogation will lead to an ongoing disregard of the opinion of lawyers about court procedure, essentially the process of allowing public misunderstanding to overturn legal standards. Chief Justice William Renquist, no less, poured gasoline on this anxiety by declaring that Miranda has "become part of our culture".
What seems to be on display is the mechanism by which Constitutional interpretation drifts from original intent. Not so much a matter of "Judicial Activism" which is "legislating from the bench", it is becoming a matter of non-lawyers confusing and stirring up the crowds until the Justices simply give up the argument. Drift is one thing; virtual bonfires and virtual torch-light parades are quite another.
http://www.philadelphia-reflections.com/blog/1817.htm
The Proprietorships of William Penn
William Penn became interested in the Colonies when he acquired New Jersey as an investor in what started out as the bankruptcy proceedings of a client. Unlike his spoiled children and grandchildren, he was sincerely interested in helping the persecuted members of his new religion, and those who later totalled up his lifetime finances found that overall he lost money on his real estate ventures. His descendants however were mainly concerned with selling real estate, and immediately reverted to the Anglican church. When William Penn later received Pennsylvania and Delaware from the King of England (Charles II, the Stuart King restored with the help of his Admiral father), he not only owned these territories but for practical reasons was offered the right to rule them. By then Penn's main future intention was to found a refuge for Quakers and other religious dissenters, so becoming a vassal King was graciously declined. Instead, he became a real estate Prioprietor, after satisfying himself about the government and other arrangements in a general way. At least half the original 13 colonies were also proprietorships, although the terms of their grants had a lot of variation. Penn's intention for the proprietorship was to sell off as much of the property as possible, sort of benignly watching the process unfold in the parts he had sold. There were two unforeseen flaws in this benevolent idea; the first was that his sons and heirs would abandon the Quaker faith and have little interest in his holy experiment except for the revenue it returned. The second flaw was to fail to see that vigorous religious toleration might eventually lead to the Quakers becoming outnumbered in their own refuge. Eventually, there does come a time in the real estate sell-off process when you have sold more than you retain. After that point, you may no longer dominate the politics, and in fact that happened far sooner than half-way, because of Penn's unwillingness to employ force .
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| William Penn |
In land value, although perhaps not in land area, that point of loss of control had been reached by the middle of the eighteenth century, and it led to a famous battle between the Penn descendants and Benjamin Franklin. The Penn family saw no justice in paying taxes on the land they hadn't yet sold, or obeying laws created by their customers which extended beyond the land they owned; if they wanted to rule it all, they should buy it all. Franklin took the part of the settlers and immigrants, who resented paying taxes and fighting Indians on behalf of someone who still owned vast stretches of land "within" the colony. Both sides had some justice in their positions, both sides appealed to the King. The Penns knew the King better, so Franklin lost. That was mostly what Franklin was doing in London in the years before the Revolution, and eventually it took a Revolutionary war to resolve the issue. Some have said the episode showed Franklin was not as shrewd a politician as history books would portray him. In fact, it more likely emphasizes that Franklin was a loyal British subject right up to 1775. His position was that all parties were and forever would be, inhabitants of the British Empire, so they had equality under British rule. The Penns felt they had a right to consider Pennsylvania their own sovereign property, under which the colonists had no rights until they paid for it. It is easy to see how the notion of independence could take hold in this curious reversal of roles. Nevertheless, Pennsylvania did resolve the issue with the appearance of lawfulness, although with restrained generosity. To quote Sydney G. Fisher, writing in The Quaker Colonies, "When the people could have confiscated everything in Pennsylvania belonging to the proprietary family, they not only left them in possession of a large part of their land, but paid them handsomely for the part that was taken." The matter is generally considered to have been finally settled by the Confirming Act of 1787, although few would now contend that fifteen pennies per acre is or was a handsome price.
And so, the Pennsylvania proprietorship was dissolved. In New Jersey, on the other hand, the proprietorship still exists. The land between the North River (Hudson) and the South River (Delaware) was divided into two proprietorships by a line drawn between the Delaware Water Gap, and Beach Haven on Long Beach Island. The southern segment was called the Proprietorship of West Jersey, informally peopled by English Quakers, and a northern half, the Proprietorship of East Jersey, informally ceded to Scots Quakers who proved to be more Scottish than Quaker. Temperamental differences might well have led the two segments to take opposite sides of the 1860 Civil War except that it was the northern half that sympathized with slavery and the Southern confederacy, while the Proprietorship of West Jersey was mostly where the anti-slavery movement began, with a Quaker named John Woolman. As matters turned out, neither slavery nor taxing unsold land became irreconcilable issues in the Jerseys. Unsold land of the Proprietorship was already fairly minor in New Jersey at the time of the Revolution, but the issue hadn't been forgotten by the Proprietors, either. A couple of the stockholders of the proprietorship were members of the Constitutional Convention. When the time came that other delegates urgently needed New Jersey's vote to ratify the new constitution, the Proprietor problem was "explained" to the other states. The outcome was that the proprietorship tacitly agreed to be taxed and regulated like any other property owner, while their ownership rights were respected as persisting under the new Constitution. Such a sensible outcome was probably not possible in Pennsylvania because there was so much more unsold land to fight about. The peacefully accepted consequence in New Jersey, even today, is that when the ocean creates a new strip of beach, or a farmer abandons some land on the other side of a turnpike, it reverts to the Proprietorship as undeeded and untitled land. As such, it legally belongs to a little group of stockholders who meet once a year in Burlington or Salem, under a tree, and who can actually pay themselves annual dividends. It is however only true in half the state; the Proprietorship of East Jersey surrendered its rights to the State in 1998.
In Delaware, things are a little fuzzier. Delaware was once part of Pennsylvania, as the lower three counties. John Dickinson was once Governor of both states, but they had two legislatures from 1700 to 1776. The last time the proprietorship matter came up, so far as real estate lawyers can remember, was in the shifting sandy beaches of Cape Henlopen; things were smoothed out by making the disputed land into a state park.
Footnotes:
Link 1 Link 2 Link 3 Link 4 Link 5 Link 6 Link 7 Link 8 Link 9 Link 10
http://www.philadelphia-reflections.com/blog/679.htm
Addressing The Proprietor's Dilemma
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| William Penn |
During the century which elapsed after Charles II gave away Pennsylvania to William Penn, a couple hundred thousand people moved in and changed the place. Transformation of the wilderness explains why the terms of the grant were logical at the time, but proved almost impossible to manage at the time of the Revolution. The Penns with thirty million acres were the largest landholders in America but, big deal, by 1776 only five million acres had been sold in a century.
Charles II had written in the Charter that the Penns could have the land if they could maintain order there, retaining the legal right for the King to recover the land if they didn't. This fall-back provision seems to reflect some doubt about the ability of pacifists to shoot the necessary number of Indians, Frenchmen and Spaniards. On the other hand, the motive for a King delegating away his authority in the first place became clearer when the Penns experienced severe financial strain defending the Northeast corner of the state against the Connecticut invaders. It furthermore helps us understand why Benjamin Franklin received such a cold reception when he was sent to London by the colonists to offer civil authority over the state to the crown. The King didn't want the problems, and particularly didn't want the expense. Ambiguities were of course shared all around. William Penn quite shrewdly saw it was more sensible to treat the Indians decently than to fight with them, and cheaper too; the lesson was not lost on the British crown. But the French posed a much larger world-wide threat to the colony, finding it was rather economical to supply munitions to the Indians on the frontier and stir them up emotionally. The French and Indian War was a small component of the Seven Years War, which proved to be a very costly adventure. Its cost utterly overwhelmed the ability of one family to underwrite local diplomacy in a single colony, and jeopardized the finances of the British Monarch to carry the rest. The resulting need to tax the colonies for their defense sent things downhill, and eventually to the Stamp Act, the Townshend duties, and the Tea Tax. Everyone made lots of mistakes as the whole structure underwent revision, as pacifists are certain will happen in any war. For a pacifist utopian colony, it's all sort of a big pity.
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| John Penn |
With much to lose, the Penn family did pretty well with the resources at hand. By the time of the Revolution, three generations of Penns had divided up ownership shares of the Proprietorship.
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| Thomas Penn |
John Penn was the Governor of the state, residing in his mansion on the Schuylkill called Lansdowne, doing his best to ingratiate the locals. He struggled to be diplomatic when arguing for the decisions actually made by his Uncle Thomas in London. Thomas Penn, on the other hand, was an important friend of the British Ministry, and a notable person in aristocratic England. As the Revolutionary War approached, the problem was how to hold on to 25 million unsold acres, while unsure who was going to win the war.
The strategy adopted was to get out of the business of running local government. John Penn the Governor became a private citizen, just a local real estate agent. He took an oath of allegiance to the Revolutionary government, which in the chaos of the time was equivalent to becoming an American citizen. Meanwhile, the other members of the family remained in England, ready to revise the arrangement if the British won the war. It was all fairly transparent straddling of the issues, which was only even remotely likely to be effective because of the enormous store of goodwill built up over a century. In 1789 revolutionary France, for example, it would not have delayed the tumbrels to the guillotine, five minutes.
Meanwhile, an unexpected difficulty was created. By withdrawing from control of the local government, the Penn family also withdrew from the defense of the state borders against neighboring colonies. Under the circumstances, the Penns were afraid to appeal to the King, while the new government of Pennsylvania found the Articles of Confederation were merely a wartime tribal compact. When the war was finally over, the Penn Proprietors were not left with much of a bargaining position. The new State of Pennsylvania offered, and they accepted, about fifteen cents an acre to surrender their claims. In Delaware, they got essentially nothing for those three counties. Only in New Jersey did the Proprietors' claims remain durable after the new nation was established. The Proprietorship of East Jersey survived into the late 20th century, and the Proprietorship of West Jersey continues to return a small profit even today. The New Jersey curiosity is treated in a separate essay.
http://www.philadelphia-reflections.com/blog/1136.htm
The Proprietor, Himself
Richard Dunn, who with his wife Mary Maples Dunn stand as the two core authorities on the life of William Penn, merely smiles when asked to describe what Penn was really all about. What we need is to have one good biography emerge, but it isn't easy to guess what it will say. For the present, let's just sketch a few paradoxes which somehow need threading together.

In the first place, the wealth of William Penn can only be described as prodigious. His father had played a central role in restoring the Stuart monarchs, and in the course of it had conquered for the Crown the enormously valuable property of the Island of Jamaica. For these efforts, the father had been rewarded with extensive properties in Ireland, and a highly influential position at Court. To all of this was overgenerously added as a debt repayment, the American territories which have now become the states of Delaware, New Jersey and Pennsylvania. Actual ownership of some of this was shared with others, but all of it was quite effectively controlled by young William. No one else stands even close as the largest private landholder in American history. But to appreciate the immensity of his wealth, it should be understood that he treated this property as a sort of hobby. Over the course of his lifetime, the colonies lost money, and Penn subsidized them rather seriously from his other assets.
At the same time, Penn lived vastly beyond his income in ordinary ways, becoming heavily indebted, eventually going to debtor's prison. It probably was not necessary; his sons renounced Quakerism and made a profit on the colonies after they inherited them. Although he could display remarkable organizational talent, particularly in the organization of New Jersey, his management was mostly slack, his judgment of agents often proved too trusting, and he permitted himself to be exploited by poorly-designed contracts to his eventual financial ruin. Even that might not have been serious; he displayed a towering legal mind in the devising of the doctrine of jury nullification and was the winner in a great many lawsuits. He even demonstrated he was capable of winning dubious lawsuits, soundly defeating Lord Baltimore in a border dispute over Maryland which others have said showed Baltimore had the stronger case. We know he had influence at Court, and such legal victories suggest he might on occasion have taken full advantage of it.
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| Gulielma Maria Springett |
From the sound of things, some have concluded Penn was so rich and powerful he grew careless about his own best interests, which essentially needed very little defense. In particular, he gave this impression to his fellow Quakers, who concluded he did not need nor likely would stoop to collecting what he was owed in taxes and property sales. This cavalier attitude encouraged the early Quaker merchants to follow their own advantage without shame, and as it happened with great vigor. The Constitutions he devised for the colonies are frequently cited as the brilliant cornerstones of fairness and stability, ultimately the models for much of our present Constitution. Penn really was sincere in wanting to provide a better life for the working people than they could have at home in England. But in the Seventeenth Century, the modest role he devised for the Proprietor commanded little respect, and was not one his aggressive clients would have chosen for themselves in his position. Perhaps the most generous description of their passive aggression would be that he taught power and governance to be the collective possession of the whole Quaker meeting, so the leaders of the meeting simply took him at his word. For their part, there can be little doubt of their commercial talents; trade and industry immediately thrived in the colony. However, sharp, aggressive trade and commerce were not things a gentleman would himself want to associate with.
Unfortunately, the historical records of the early colonies are not good; for the most part, we have to surmise the struggles and frictions between a rich, financially careless, and sincerely earnest theologian in his contention with a group of poorly educated strivers who had been told he regarded each of them to be his equal. As the saying goes, he was rich beyond denying. And therefore, he was probably arrogant beyond his own ability to see it as a flaw.
Equal before the law, perhaps, and equal in the prayers of First-day Meeting. But everything about his upbringing, his social circle in London, and his staggering wealth suggested that even a saint would have trouble believing, deep in his heart, that these were truly his equals. And even if perchance he did believe it, they would not have believed it for a moment, had their positions been reversed. Penn certainly acted as though he believed in religious freedom, serene in the idea that if every person earnestly thought hard about ethical issues, everyone would eventually reach about the same conclusion. The elders of the meeting, however, behaved in ways which suggested they would personally prefer non-Quakers to settle somewhere else, and given half a chance would create Quakerism as an established church. There seemed to be those who felt that Friend William was perhaps a little too trusting. And anyway there were some obvious paradoxes. William Penn kept personal slaves.
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| Hannah Callowhill Penn |
With two wives, William Penn had thirteen childrem. Among them was considerable diversity of opinion, along with the same tendency to rebellion found in any two generations. Early illnesses and chance led to the emergence of those children who renounced Quakerism, and showed no shame at all about wanting to have money in order to spend it recklessly. One would have supposed that a man of Penn's intellectual stature would have been able to control his family better, but his own reckless youth had been so extreme that he had few arguments available when, as seems virtually certain, rebellious children defended themselves by reminding him of his own indiscretions. William Penn displayed absolutely no sense of humor; a touch of it would have been useful in mastering a family and friends who were undoubtedly having a little trouble knowing what to make of this apparition in their midst. Some equally pompous Pennsylvania merchants might have had difficulty denying that in their passive aggression, they occasionally resembled the spoiled brats with whom he found he had ample family association.
http://www.philadelphia-reflections.com/blog/1761.htm
Addressing the Flaws of Republics
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| James Madison |
Everyone might profit from reading Plato on the subject of republics, not to mention reading James Madison. But both The Republic and The Federalist were conjuring republics they proposed, not ones they had experienced. After Madison did get hands-on experience he had such radical changes of opinion his good friend George Washington essentially never spoke to him again. Not only in republics of course, does reality prove different from founding theory. It might seem more measured to say of republics that two centuries of their reality proves to be such an extension of theory, it effectively departs from it. In essence, the republican idea is to limit the voters to one periodic review of their representative's term of office overall, not in ongoing picky detail which would hamper him. This definition contrasts republics with democracies, and implies the reason to favor republics. The elected representative is given full power to act during his term in office, but must eventually face the voters for an accounting at the fixed time for re-election. Plato and Madison were right about extending latitude to one's chosen representative, but they failed to predict how effectively that latitude might be stolen by the legislative body itself, and controlled by rules and leadership which skirt ratification by the general public outside their chamber, in any district. The Romans, of course, did know what they were talking about, but history has tended to ascribe Roman difficulties -- assassinations, for example -- to flaws in Roman character rather than in construction of the Roman Republic. After describing some problems history has revealed about our own system, this essay is written to propose a solution. A second essay follows, to defend that solution.
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| Joseph L Bristow |
The differences between House and Senate in the original U.S. Constitution were three, but since the Seventeenth Amendment in 1913, there are now only two. Originally, Senators were selected by the legislatures of the states they came from. A century of experience demonstrated the result was cronyism, members of the legislature using senatorial appointments as bargaining chips and for the most part limiting the choice to one of their own members. The provision probably did attract a higher grade of legislator overall, encouraging those primarily ambitious to be U.S. senators to have a try-out in the minor leagues first. It did give the State government serious power to punish a U.S. senator who failed to please the home state. And this selection process made it simpler and cheaper to run for the job as U.S. senator. This feature encouraged candidates with competing career choices, otherwise discouraged by the expense and unpleasantness of candidacy, to step forward. But by 1913 all this was seen as a way for cronyism to dominate the process, swapping appointments for favors, or even more tangible bribes. From the distance of another century it can be seen that the steadily declining power of state legislatures was matched by a declining quality of their elected membership, leading to a rising level of sordidness in their foibles. Hapless amateurs were largely supplanted by career politicians. After the Civil War "states rights" stirred up memories of secession and led to deliberate weakening of the states' role. Whatever the reasoning, the mentality of Progressivism was sweeping the country in 1913, and popular election of senators was deemed a Good Thing, swept in to general satisfaction. Doubt about whether it all made as much difference as claimed lies in the reality that from 1913 to 2010, one quarter (182) of all Senators have first arrived in the Senate through appointment by a Governor to fill an unexpired vacancy. Many of these vacancies have of course been contrived for the purpose.
sentative lies in the size of the population who vote for them, and the frequency with which they must endure that unpleasantness. Members of the House are elected for two years and members of the Senate are elected for six; the voting constituency of 100 Senators is generally much larger than that of 532 Representatives, so because the population grows faster than the number of states, the representation discrepancy also grows. The frequency of running for reelection seems to be so irksome that whenever a senate seat falls vacant, some sitting Congressman from that state is almost certain to try to switch. Of course it is true that with only a quarter as many senators as congressmen, the power of each vote is weightier. To the extent that committee memberships represent special insider power, a senator does belong to more committees, but is more severely stretched to attend them all. Each senator's vote does have greater scarcity value, but a Representative who tends to business is more likely to know what he is talking about, hence better able to be influential in the committees where most matters are really decided. The limits of merit promotion in both houses of congress lies in the differing power of various committees, while the favor of appointment remains within the iron control of caucus leadership. In public, senators seem generally more polished and experienced in public persuasion. The persuasion that counts however is of gaining the respect of colleagues in your own legislative body, always restrained by the power of leadership to coerce conformity. Public persuasiveness by contrast is often little more than glibness, reflecting greater experience with dodging an issue to conceal a lack of depth in it. Almost all senators aspire to the presidency, although few achieve it. No Congressman has been elected President since Warren Harding; indeed, few Congressmen even dare to seek nomination. The appointment of Gerald Ford was a special situation. However, it is worth pondering that during the early days of the republic, the House of Representatives was considered much more prestigious than the Senate, and that curiosity continues to raise an important question just why it is now reversed.
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| George Washington |
The differences in prestige between the House and the Senate cannot be ascribed to the comparatively minor differences in their Constitutional definition, the size of their district and the frequency of election. Otherwise, we could immediately improve the quality of congressmen by reducing the limit of their number and frequency of re-election, which scarcely anyone has proposed. The more likely source of the problem can be found in the differing rules of procedure which each body has adopted; and reaffirms at the opening of each term. Various strategies of committee assignment and seniority have adapted to the reality that newly elected politicians rarely have any skills other than the ability to get elected. But almost everyone can learn, given enough time being exposed to a topic. A seniority system can occasionally lead to someone who is hopeless, gradually floating into a position where he can do great harm. Provision must be made for graceful exceptions to the seniority rule, usually by excluding a member from important committees until he has demonstrated some competence, less often by later dropping someone who has age- or alcohol-diminished faculties. Underlying this approach is a contempt bred of experience for the wisdom of the voters, back there in the district, whereas the leaders of the fraternity can protect the nation by judiciously devised rules. Sometimes it is unfortunately necessary to be a little hard boiled.
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| Martin Van Buren |
So far so good. When Jefferson and Martin Van Buren invented political parties, the bodies of Congress responded by inventing caucuses. George Washington was not a learned man, but he knew he hated this system. James Madison probably feared political parties more than he hated them, so he incurred Washington's permanent displeasure by getting good at manipulating what he saw as the winning strategy. Van Buren's fate was more ironic; after inventing many of the unpleasant little strategies of modern politics, he was defeated by William Henry Harrison in the "log cabin" election of 1840. Harrison hadn't been born in a log cabin at all, he was born in a Virginia mansion, hee, hee, hee. George Washington wouldn't have chuckled at that one, he would have been livid.
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| Henry Clay |
Party caucuses have only one central feature, which is vote-swapping. Many of the strategies of this unattractive behavior were outlined in elegant detail by Pliny the Younger, in the Roman Senate, and James Madison the student of government had sought to avoid them. When he decided it was hopeless, he joined them and got good at it. In retrospect, the premier example of vote-swapping was the trade which Madison and Hamilton made, placing the nation's capital in Virginia/Maryland instead of Philadelphia, in return for federally redeeming the Revolutionary debts for all 13 states, when Virginians had already paid theirs off. Philadelphia had essentially nothing to say about it. Pliny had cautioned and subsequent practitioners have followed the advice to cover your tracks by swapping votes for an issue seemingly unrelated to the one in dispute. That's about all there is to vote-swapping, find out what the guy wants badly enough, and trade him something for it. It follows that it's wise to give off the appearance that you don't want much of anything. A corollary is that political caucuses try to conduct even innocent or public-spirited discussions in secret, making public only what is expedient to be made public. And a further corollary: some members of a caucus are from totally "safe" districts. Occasionally their votes can safely be traded for something the opposing party wants but the caucus feels necessary to claim to oppose. When a caucus wants something badly enough to trade it for something else, but is three or four votes short, the opposing caucus may trade the four votes from safe districts while violently denouncing the dirty turncoats. All this is known as party loyalty. When things are particularly tough, party loyalty can be enforced by finding out what you want badly, and taking it away from you. When these whips are applied to you, a grievance develops. Fine, what do you want to trade in return for vengeance? Many of these refinements seem to come, not from Rome, but from Sicily.
As was stated at the beginning, the purpose of this essay is not to rail at Congressional corruption, but to counteract it to some degree. Since the worst features of this system require secrecy and public duplicity to be effective, the best remedy is sunshine. Not about what Roosevelt did in his third term, but about what your local congressman might do next week, and his fear you will find out. His fear that a blogger will tip off the local newspaper or radio station, encouraging someone else with ambition to file for election against you. And his fear that when he asks someone for a campaign contribution, that person will bring up the topic in question. His fear that the local political boss will decide he can't win.
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| Boxing Politcians |
This was more or less the system which the founding fathers, James Madison chief among them, envisioned for this shining city on a hill. And which two centuries of rather clever schemers have gradually eroded. The highly desirable feature of a republic is that the elected person is free to represent his own interpretation of what is best for his district or, failing that, what is best for the nation. The elected representative is encouraged to risk defeat in the next election, if in his judgment what is good for the district is bad for the nation. But he is not a suicide bomber, if his vote will make little difference in the outcome he can be forgiven for taking cover. One would wish that fewer of them would speak one way and vote in the opposite direction, but that can be forgiven if someone back home in the district is keeping score and letting others know of it. The fundamental principle of a republic as distinguished from a pure democracy is that a representative, while free to act during his term in offfice, remains obliged to face the voters at the appointed time. Our system has come to exaggerate the actual extent of freedom to use judgment, because the freedom has been stolen by party leaders through the application of schemes too devious to detail. But the freedom is fundamentally a good thing. What has come to be so lacking is the idea of facing an informed electorate in making a choice between you and an informed opponent. The public, it must be feared, doesn't know beans.
And so the proposal for fixing this mess is difficult, but it can be stated simply. The recent economic boom created nearly a thousand billionaires; maybe four hundred would be a number that would escape challenge. If only fifty of them would endow think tanks in all fifty state capitals, and the fifty-first would endow an organization dedicated to making their research available to the public, then perhaps another fifty would be prompted to create a second think tank in each state capital on the opposite political side. Two polarized think tanks in each state capital, just imagine it. As things now stand, it would be a sufficient first step if that happened in only one state, and the rest of the country could watch what happens.
http://www.philadelphia-reflections.com/blog/1976.htm


Prior to 1854, Philadelphia City was one of twenty-nine political entities within Philadelphia County. After that, it became one big city without suburbs. Growth pressure now reverses toward suburbs without a city. Political boundaries should thus shift inwardly.
(1573)
Banks would not normally take sides between first and second mortgages. However, securitization took the first mortgages away from big banks, so they now have an incentive to seek political favor for second mortgages.
(1631)
Until recently, mentally retarded children weren't even considered in school budgets. But in recent decades, they have become one of the biggest challenges.
(1806)
George Washington was an athlete, a soldier, and an adventurous leader. It is less appreciated that he constructed an aloof public image of himself, cloaking an activist politician, and a rather ambitious real estate developer. We got a new Constitution because he wanted a new constitution.
(1538)
King Charles II did give Wilkes-Barre to Connecticut first, and the same king did later give the same land to William Penn. Unfortunately for Connecticut, at that time the last word was all that mattered.
(1030)
A man in constant motion for 88 years, Albert Gallatin almost defies description. America's longest-serving Secretary of the Treasury also founded New York University and the Chase National Bank, and negotiated the Treaty of Ghent. Having led the charge in denouncing Hamilton's bank, his greatest achievement was to persuade Jefferson not to close it down.
(1329)
The Philadelphia Inquirer just published the average school expenditures, per district, in our region of 166 districts within 8 counties. The City of Philadelphia comes in dead last, at $11,460 per pupil.
(1799)
A string of three forts at the level of the Delaware-Chesapeake Canal once guarded the approaches to Philadelphia, but were never needed. After the Battle of Gettysburg, Fort Delaware on Pea Patch Island served as a deplorable prison camp for Confederate prisoners; it's now a tourist stop.
(880)
The doctrine of Quakerism is to have no doctrine. It has provoked two main schisms in the church; George Keith making a plea for at least some doctrine, Elias Hicks leading a later movement back to simplicity.
(796)
The Right Angle Club has decided to make donations to the Children's Scholarship Fund of Philadelphia.
(1746)
Veterans of the Vietnam conflict are famously reluctant to talk about their experiences. It's hard to know what that means, and whether it's a good thing or a bad thing.
(1717)
Right before our eyes, we can watch the Miranda decision migrate away from original intent.
(1817)
William Penn owned Pennsylvania, New Jersey and Delaware; as the proprietor, he was the largest private American landowner, ever. Although the Revolutionary War mostly ended that, the proprietorship still owns all unclaimed land in New Jersey.
(679)
King Charles II gave Pennsylvania to William Penn on condition he defend the place and fuss with neighboring states about its boundaries. A century later, it proved more than a private citizen could handle.
(1136)
We need some local, not national, think tanks. To understand why, it helps to have been elected to something, yourself.
(1976)