Zimmermann Telegram the proverbial straw that broke America’s isolationism

A vintage postcard signed by U.S. General John J. Pershing (right), and also showing British Field Marshal Douglas Haig and French General Ferdinand Jean Marie Foch, went to auction in October 2006.

By Jim O’Neal

On Jan. 31, 1917, the German Secretary of State for the Imperial Navy addressed the nation’s parliament. “They will not come because our submarines will sink them.” He went on to state, categorically, “Thus, America, from a military point of view, means nothing … nothing!”

Strictly from an Army standpoint, Eduard von Capelle may have had a point. The U.S. Army had gradually declined in size to 107,641 – ranked No. 17 in the world. Additionally, the Army had not been involved in large-scale operations since the Civil War ended in 1865, over 50 years earlier.

The National Guard was marginally larger, with a total of 132,000. However, these were only part-time militia spread among the 48 states and they, quite naturally, varied considerably in readiness. Equipment was another issue since they were armed with nothing heavier than machineguns. This was rectified significantly in 1917-18 when 20 million men were registered for military service.

Known to only a few, two weeks earlier on Jan. 16, British code-breakers had intercepted a diplomatic message sent by German Foreign Secretary Arthur Zimmermann. The “Zimmermann Telegram,” as it is known, was intended for Heinrich von Eckardt, the German ambassador to Mexico.

The missive gave the ambassador a set of highly confidential instructions to propose a Mexican-German alliance should the United States enter the war against Germany. Von Eckardt was to offer the president of Mexico generous military and financial support if Mexico were to form an alliance with Germany. In exchange, Mexico would be free to annex the “lost territory in Texas, New Mexico and Arizona.” In addition to distracting the United States, Mexico could assist in persuading Japan to join in, as well.

At the start of World War I, Germany’s telegraph cables passing through the English Channel had been cut by a British ship. This forced the Germans to send messages via neutral countries. They had also convinced President Woodrow Wilson that keeping channels of communications open would help shorten the war. The United States agreed to pass on German diplomatic messages from Berlin to their U.S. Embassy in Washington, D.C.

The United States was still firmly committed to remaining neutral and not being entangled in foreign wars that did not pose a direct threat. Wilson had been re-elected in 1916 with a main slogan of “He kept us out of war!” But that did not prevent many individual citizens from joining and many were already fighting in the war in a variety of ways. Some had joined the British Army directly and others joined Canadians already in Europe.

There were also groups in the French Foreign Legion and a special group in the French Air Force. They formed the La Fayette Escadrille in honor of the Marquis de Lafayette, who was a friend from our own war for freedom. Lafayette had actually fought in the American Revolution as a major general under George Washington. He was even present at Yorktown, Va., when British Army General Charles Cornwallis had surrendered, effectively bringing an end to armed hostilities. When Lafayette died in 1834 in Paris, President Andrew Jackson had both Houses of Congress draped in black for 30 days. Individual members of congress also wore mourning badges. It is likely that we may have lost the war with Britain absent the help from the French.

Back on the morning of Jan. 17, 1917, one of the British codebreakers (Nigel de Grey) entered Room 40 of the British Admiralty and asked his boss a question: “Do you want to bring America into the war? I’ve got something that might do the trick!” It was a decoded copy of the Zimmermann Telegram.

Room 40 was the home of the British cryptographic center and they were acutely aware of the implications of disclosing their clandestine activities. They developed an elaborate plan to get a copy to President Wilson without exposing that they had been monitoring all transatlantic cables, including America’s (a practice that would continue for another 25 years). Wilson received a copy on Feb. 25 and by March 1, it was splashed on the front pages of newspapers nationwide.

Diplomatic relations had already been severed with Germany in early February when Germany had resumed unrestricted submarine warfare on American ships in the Atlantic. The Zimmermann Telegram became the proverbial straw that broke America’s isolationism and on April 2, Wilson asked Congress to officially declare war, which they did four days later.

Remarkably, by June 17, the American Expeditionary Force had landed in France. General John J. Pershing and his troops soon marched on Paris. By 1918, it was almost as though Von Capelle’s prophetic “They will never come” had been trumped in six months by America’s melodramatic “Lafayette, we are here!”

Many of the best Room 40 personnel would end up at Bletchley Park to work on cracking the German Enigma machine. Their work is captured brilliantly in the 2014 film The Imitation Game, with Benedict Cumberbatch in the Oscar-nominated role of English mathematics genius Alan Turing.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

President Coolidge deserves credit for his guiding hand

An official inaugural medal for Calvin Coolidge, inscribed “Inauguration March 4, 1925,” sold for $16,250 at a May 2019 Heritage auction.

By Jim O’Neal

There must have been thousands of American veterans of World War I still alive when I was born in 1937. After all, it had been less than 19 years since the Peace Armistice had been signed in November 1918. Although the war started in Europe in 1914, the United States didn’t get directly involved until April 1917 after a series of events provoked President Wilson to ask Congress to declare war.

However, my only recollections are about the Second World War, when my father and five of my mother’s brothers went to strange-sounding places like Iwo Jima, Guadalcanal, Tarawa and Okinawa. My Saturdays at the movies were (seemingly) exclusively Westerns and war films. Of course, there were the newsreels narrated mostly by Lowell Thomas, the voice of Movietone News. This was the generation that suffered through the Great Depression and earned the title of “the Greatest Generation” (Tom Brokaw) for their courage, sacrifice and honor. I give them a lot of credit for a time in the 1950s that I fondly recall with television, my own car, more money than I could spend and unlimited basketball, baseball and surfing.

Still, historians agree that the First World War had a major impact in shaping the modern world. A war of unprecedented violence, it upended the Victorian Era’s peace and prosperity. It unleashed mechanized warfare and death on a level that was staggering. Concurrently, it fundamentally altered the social norms for economics, psychology and liberalism that dated back to the Enlightenment. No one has developed an acceptable theory on the confluence of events that shattered the relationships of monarchies with blood and familial ties. The complicating treaties and alliances served as an obvious domino factor, but a single circuit breaker had the power to defuse the entire situation if it had been employed early.

Yet not a single leader had the courage or foresight to simply call “Time out!” and stop the equivalent of a runaway train. This strategic void led directly to the loss of 10 million lives and the destruction of a continent that had slowly evolved a benevolent culture with so much potential. Fortunately, the war was primarily rural and most of the grand historic buildings were spared; fate would not be so kind to the next confrontation … with thousands of bombers, guided bombs and the destruction of entire cities.

Perhaps worse, though, was the post-war legacy of hatred that made the horrific second tragedy inevitable. Consider the mindset of Adolf Hitler on Sept. 18, 1922, when he warned, “It cannot be that 2 million Germans should have fallen in vain … No, we do not pardon, we demand … vengeance!” Are these the words of a sane man who would be satisfied to regroup, rebuild and start over? Or a clever psychopath who would corrupt the minds of people, even as they were struggling with the punishment required by the Treaty of Versailles and the English, French and Russians exacting their revenge? Thousands of books have answered this with clarity.

Sadly, Americans and especially President Wilson would be seduced by a vague concept of a “14 Point Peace Plan” and a “League of Nations” to prevent future war, yet couldn’t even pass an obstinate Congress. It was another academic chimera, followed by a disabling stroke. Wilson’s successor was a flawed man, surrounded by corrupt men and public scandal. President Harding’s death in 1920 was unexpected but provided the opportunity for his vice president to perform an overdue house cleaning.

Calvin Coolidge was just the man to address the scandal-ridden administration of Warren G. Harding. His list of accomplishments are still not well known, but included cutting taxes four times, a budget surplus every year in office, and reduction of the national debt by a third. In many respects, he was a man of a bygone era. He wrote his own speeches, had only one secretary and didn’t even have a telephone on his presidential desk. Little wonder that President Reagan, who admired Coolidge’s efforts toward a smaller government and lower taxes, placed Silent Cal’s portrait in the White House Cabinet Room next to Lincoln and Jefferson.

Today, it’s not clear precisely how many wars we are in and how many have the exit strategy that Colin Powell considers essential to any military action (along with a clear objective and overwhelming forces to ensure victory). I wish I’d heard more from those WWI veterans that prompted this lesson!

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Let’s just say Julia Grant truly enjoyed her days in the White House

This cabinet card, signed by First Lady Julia D. Grant, went to auction in November 2015.

By Jim O’Neal

In May 1876, President Ulysses S. Grant and his wife Julia traveled to Philadelphia from Washington to open the Centennial Exposition in Fairmount Park. The United States was celebrating its 100th birthday and the signing of the Declaration of Independence. It was also a great opportunity to display the remarkable industrial progress that had occurred during the intervening years, especially in the 19th century. The exhibition was the result of three years of extensive planning and it was an impressive accumulation of American ingenuity.

On May 10, before an excited crowd of 186,672, Grant officially opened the fair following Wagner’s Centennial March. It was difficult to hear his speech due to crowd noise, but a flag raising and cannon volley was followed by a loud chorus of “hallelujah!” This was followed by a march to Machinery Hall, where a switch was thrown to spark the enormous Corliss electrical engine to power up all the machinery. At 50 feet tall, it was the largest in the world and powered more than 100 machines on display.

The First Lady was miffed that she wasn’t chosen to start the festivities and her pique exposed how accustomed she had grown to deference in the White House after eight years of pampering. But that honor went to Empress Teresa Cristina, wife of Emperor Dom Pedro II, the last emperor of the Brazilian empire. He had become emperor at age 5 when his father died and he reigned for an astounding 58 years (1831-1889).

Dom Pedro had visited the United States earlier and had attended one of Alexander Graham Bell’s deaf-mute classes at Boston College. Inspired by Bell’s work, he founded the first deaf-mute school in Rio de Janeiro when he returned home. Coincidently, Bell had been persuaded to exhibit his latest invention at the fair: the Bell telephone. When the affable emperor learned of Bell’s exhibit, he eagerly agreed to try the device in a demonstration for a crowd.

Placing the receiver to his ear, he was treated to Bell’s personal recitation of Hamlet’s “To be or not to be” soliloquy. Delighted and astonished, Dom Pedro exclaimed, “My God, it talks!”

However, the general public proved to be less impressed and hard to sell. As one detractor complained, “It is a scientific toy … for professors of electricity and acoustics.” After convincing his father-in-law, lawyer and financier Gardiner Hubbard, Bell and his assistant Tom Watson set out on a demonstration tour. AGB would sit on a stage, connected to Watson via leased telegraph lines several miles away. After introductory remarks, Watson would sing a repertoire of tunes, including Yankee Doodle.

As an aside, AGB’s first coherent telephone message – “Mr. Watson, come here, I want to see you” – was really a plea for help. He had spilled battery acid on his pants and, instinctively, made the first emergency call in history. We know how that story progressed since we all carry around smartphones that have more computing power (and other functionality) than Apollo 11 when it made its historic manned flight to the moon in 1969.

Although Grant was cheered at the opening of the Centennial Exposition, any thoughts he had about a third term disappeared in a toxic haze of a weak economy and widespread corruption. When the Republican Convention met in Cincinnati in June, the party platform directly criticized Grant, calling the administration “a corrupt centralism … carpetbag tyranny … honeycomb federal government … with incapacity, waste and fraud.” Out of this cesspool stepped the governor of Ohio, Rutherford B. Hayes, an honest, sincere man with a commitment to limiting the presidency to a single term. Democrats picked the governor of New York, Samuel Tilden, with strong credentials having conquered Tammany Hall and the corrupt Boss Tweed ring of rogues.

Hayes won in 1876 after the most controversial presidential election in U.S. history. Grant was actually worried about a coup as Democrats, convinced the election was rigged, rallied under the cry of “Blood or Tilden.” Since March 4, 1877, was a Sunday, there was precedent to avoid having the inauguration on the Sabbath by waiting until the next day, as Presidents Monroe and Taylor had done. Grant was so paranoid about waiting an extra day that he arranged for a private ceremony on Saturday night as part of a routine dinner at the White House. Hayes was sworn in by Chief Justice Morrison Waite before the food was served.

On Monday, March 5, the ceremony was recreated (for show only) before a crowd estimated at 30,000. A teary-eyed Julia Grant was not one of them. She stayed in the White House as long as possible and I suspect she would have welcomed having another four years. She even hosted a luncheon for her successor after the inauguration. She later wrote, “How pretty the house was … in an abandon of grief, I flung myself on the lounge and wept, wept oh so bitterly.”

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

 

Let’s not forget the horrors spawned by Russia’s dictators

“How Stalin Hopes We Will Destroy America” is a 1951, 16-page anti-communism giveaway comic book published by Joe Lowe Co.

By Jim O’Neal

It is (almost) painful to watch otherwise bright and eloquent activists attempt to explain the basic tenets underpinning their infatuation with democratic-socialism. Even a casual reading of 20th century history should be more than enough to convince the naive of its fatal flaws. I sometimes wonder if philosopher George Santayana was anticipating this situation and trying to find a kind, diplomatic way to explain that “Those who cannot remember the past are condemned to repeat it.”

Yet socialism is back with a presidential election on the horizon (will Bernie Sanders run?) and another generation thirsty for change. The old warhorses of populism and capitalism will do battle again as advocates field their best warriors to convince others. My only hope is that we don’t have to repeat the tired, discredited concepts of Marxism, Leninism and communism that co-mingled with early 20th century socialism.

It is far too easy to pick from any number of fuzzy thinkers to make a compelling case to indict and convict them of naïveté, or to find a country in the Western Hemisphere that is disintegrating in front of our eyes (e.g. Venezuela). A bit more challenging is to link two historic names, familiar to all, who went from bad to disastrous.

Throughout the 20th century, renowned historians debated whether Vladimir Lenin’s successor – Joseph Stalin – was his rightful heir or simply an opportunistic usurper. After the collapse of the USSR in 1991, they finally had their answer. Evidence that had been locked away for decades in secret files eliminated any lingering doubts. The two dictators were like evil twins, starting with Lenin’s obsession to shoot, hang or destroy anyone who resisted the Bolsheviks agenda. The world’s experts agreed that Lenin spawned Joseph Stalin.

Lenin was born into a life of luxury, a normal child with a curiosity satisfied by reading. That phase of his life changed dramatically when his brother was hanged in 1887 after involvement in a plan to kill Czar Alexander III. Perhaps even worse was the family ostracism from polite society. Later, he would write, “The bourgeois will always be cowards and traitors.” He then dedicated his life to destroying the czarist system and its members.

Withdrawn and intensely focused, Lenin developed a maniacal passion for revolution that drove him to the brink of a nervous breakdown even after being exiled in Western Europe. He was a ruthless debater with the familiar “win at any cost” strategy that radicals invariably adopt. One of the Mensheviks summed it up nicely: “I hope there is no afterlife. Can you imagine arguing with Lenin after death? And then thereafter listening to his gutter abuse?”

From the moment of the Bolshevik coup in October 1917, he crushed any threat to his party’s hold on power, eliminating political parties, jailing opponents and unleashing terror using the political police.

In the aftermath of Lenin’s death in January 1924, Joseph Stalin – Secretary General of the Communist Party – emerged as the outright leader of the Soviet Union. Impatient with dictatorship, Stalin set out to forge a despotism in mass bloodshed. It included the forced collectivization of Soviet agriculture, the linchpin of the first five-year plan. He set draconian quotas for the confiscation of “surplus” food and violently repressed those he then exterminated. The consequent famine killed more than 5 million in Ukraine, Kazakhstan and the Northern Caucasus.

It is estimated that he was responsible for 50 million deaths. The rest of the story is available through dozens of books that chronicle his “Reign of Terror.”

To the well-intentioned, this is the road to socialism and then worse. It is an oft-traveled route that will ensure destruction of the many good things we enjoy. Travel at your own peril.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

It’s easy to forget the value of a good magazine

A 1950 copy of Time magazine featuring Ted Williams and graded CGC 9.6 sold for $5,280 at a May 2018 Heritage auction.

By Jim O’Neal

I was in our local supermarket recently and a woman ahead of me at the checkout had a cart full of groceries, plus seven or eight magazines. I’ve grown accustomed to seeing them on planes and in doctors’ offices and just assumed they got there by subscription or Publishers Clearing House (where people routinely win a million dollars, at least on television). Seeing someone plunk down cash for a stack of them was a mild surprise that brought back old memories when I coveted comic books.

In the 19th century, Karl Marx claimed that gunpowder, the compass and the printing press were the three most important inventions of the social class that owned the means of production during the modern industrialization period. This helped ensure the preservation of their capital, which in turn enabled maintaining societal supremacy. Someway, simply owning a printing press kept the masses yoked to a permanent underclass.

Others, especially Sir Francis Bacon (1561-1626), recognized the printing press, firearms and nautical compass and asserted there was nothing to equal them among the ancient Greeks and Romans. In 1620, he wrote in his Great Instauration that “printing, gunpowder and the nautical compass … have altered the state of the world. First in literary matters, secondly in warfare and third in navigation.” This makes sense, but doesn’t explain how the Chinese had all these tools several hundred years earlier, and had even invented paper as an important component. Their tendencies to remain isolated may be one obvious rationale.

Prior to the printing press, books had to be copied painstakingly by hand. Johannes Gutenberg’s introduction 650 years ago of the metal movable type-printing press created a new method for knowledge to be mass-produced for the first time in human history. This opened up an enormous opportunity to print books, flyers, pamphlets, bibles and newspapers virtually anywhere at reasonable prices.

By the 1700s, there was a craving for literacy and knowledge, especially among women, who had been deprived of intellectual education. The first American magazines showed up in 1741 as Philadelphia printers like Benjamin Franklin (who missed being first by a mere three days) rushed to add magazines to their newspaper businesses. Most were financial failures since they were tailored for the wealthy. However, new ones eagerly took their place and proliferated in an attempt to satisfy the growing demand for amusement and entertainment. Magazines were here to stay and would only grow more popular as literacy rates skyrocketed.

Skip forward to the 20th century and we find Yale college roommates Briton Hadden and Henry Luce working for the Baltimore News. They recognized the seemingly insatiable demand for news. With radio and television not fully developed, they believed magazines were the obvious medium to fill the need. After considering various names like Facts, they finally settled on Time, the first weekly newsmagazine in the United States. With the slogan “Take Time – It’s Brief,” on March 3, 1923, they published the first issue, featuring the famous retired Speaker of the House Joseph Cannon (1836-1926).

The first great pictorial magazine, Life, had failed during the Great Depression and publishing genius Luce (1898-1967) bought the name and relaunched it. Time was designed to “tell’ the news and Life dedicated to “showing” curious Americans what was happening around the world … and for pocket change. Later, Luce added the business magazine Fortune (1930) and Sports Illustrated (1954). The first Sportsman of the Year was Roger Bannister, the first to run the mile in under 4 minutes … 3.594. Ten years later, high school runner Jim Ryun duplicated the feat.

Today, there are literally thousands of magazines worldwide. They inform, educate, inspire and entertain readers globally. Magazines will continue to change the nature of things throughout the world for a long time to come. I need to pay more attention to this strategic shaper of world history!

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Here’s Why Linus Pauling is Among Our Greatest Scientists

A lot that included Linus Pauling’s signature was offered in January 2017.

By Jim O’Neal

Serious writers about Albert Einstein almost invariably include two episodes in his life. The first is the year 1905, when he published four stunning scientific papers. The first explained how to measure molecules in a liquid; the second explained how to determine their movement. The third was a revolutionary concept that described how light rays come in packets called photons. The fourth merely changed the world!

A second highlight deals with a “fudge factor” Einstein (1879-1955) called a “cosmological constant,” whose only purpose was to cancel out the troublesome cumulative effects of gravity on his masterful general theory of relativity. He would later call it “the biggest blunder of my life.” Personally, I prefer a much more simplistic observation that perfectly captures his nonchalance. The poet Paul Valéry (1871-1945) once asked him if he had a notebook to keep track of all his ideas. A rather amused Einstein quickly replied, “Oh, no. That’s not necessary. It is very seldom I have one.”

History is replete with examples of people who had a good year. It was 1941 for Yankees great Joe DiMaggio when he hit in 56 consecutive games, and Babe Ruth’s 60 home runs in 1927. For Bobby Jones, it was 1930, when he won all four of golf’s major championships. Some people have good days, like Isaac Newton when he observed an apple falling from a tree and instantly conceptualized his theory of gravity.

Linus Pauling was different. His entire life was filled with curiosity, followed by extensive scientific research to understand the factors that had provoked him to wonder why. Pauling was born in 1901. His father died in 1910, leaving his mother to figure out how to support three children. Fortunately, a young school friend got an inexpensive chemistry set as a gift and that was enough to spark Pauling’s passion for research. He was barley 13, but the next 80 years were spent delving into the world of the unknown and finding important answers to civilization’s most complex issues.

He left high school without a diploma (two credits short that a teacher wouldn’t let him make up), but then heard about quantum mechanics and in 1926 won a Guggenheim Fellowship to study the subject under top physicists in Europe. (He was eventually given an honorary high school diploma … after he won his first Nobel Prize.) By the late 1920s and early 1930s, Pauling was busy cranking out a series of landmark scientific papers explaining the quantum-mechanical nature of chemical bonds that dazzled the scientific community.

Eventually, he returned to the California Institute of Technology (with his honorary high school diploma) to teach the best and brightest of that era. Robert Oppenheimer (of the Manhattan Project) unsuccessfully tried to recruit him to build the atomic bomb, but failed (presumably because he also tried to seduce Pauling’s wife). However, Pauling did work on numerous wartime military projects … explosives, rocket propellants and an armor-piercing shell. It’s a small example of how versatile he was. In 1948, President Truman awarded him a Presidential Medal for Merit.

In 1954, he won the Nobel Prize in Chemistry for his research on the chemical bond and its application to the elucidation of the structure of complex substances … which I shall not try to explain. And along the way, he became a passionate pacifist, joining the Emergency Committee of Atomic Scientists, chaired by Einstein, in an effort “to warn the people of the pending dangers of nuclear weapons.” His reward was to be called a communist; he had his passport revoked and his patriotism challenged, along with many others, in the dark days of McCarthyism.

In 1958, he petitioned the United Nations, calling for the cessation of nuclear weapons. In addition to his wife, it was signed by over 11,000 scientists from 50 countries. First ban the bomb, then ban nuclear testing, followed by a global treaty to end war, per se. He received a second Nobel Prize for Peace in 1963, but that was for trying to broker an early peace with Vietnam, making him one of only four people to win more than one prize, including Marie Curie in 1903 (physics) and 1911 (chemistry). His other awards are far too numerous to mention. As an aside, he died in one of my favorite places: Big Sur, Calif., at age 93.

Sadly, in later life, his reputation was damaged by his enthusiasm for alternative medicine. He championed the use of high-dose vitamin C as a defense against the common cold, a treatment that was subsequently shown to be ineffective (though there’s some evidence it may shorten the length of colds). I still take it and see scientific articles more frequently about the benefit of infused vitamin C being tested in several cancer trials.

If he were still working on it, let’s say the smart money would be on Pauling.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

People Flocked to California in Hopes of Finding Instant Riches

A daguerreotype of a California gold-mining scene by Robert Vance, circa 1850, sold for $83,650 at a May 2011 auction.

By Jim O’Neal

When Brigham Young heard that fellow Mormon Sam Brannan had been tithing the gold miners at the Mormon Diggings in California, he sent an envoy to demand the church’s money. In a version of the story circulated by sawmill operator John Sutter, Brannan replied, “You go back and tell Brigham Young that I’ll give up the Lord’s money when he sends me a receipt signed by the Lord!”

Brannan’s success transcended his dealings with local miners. As the rush to the mines accelerated, his Sacramento store did huge business, as much as $5,000 a day. With the proceeds, the wily entrepreneur opened additional stores throughout gold territory and constructed hotels, warehouses and other commercial buildings. In San Francisco, he organized a consortium that built the city’s first large wharf at a cost of $200,000. By quickly repaying all owner-investors, Brannan’s reputation and wealth continued to grow.

Sam Brannan is widely recognized as the first authentic millionaire in California.

When gold was discovered on the American River above Sutter’s Fort in January 1848, California was a sparsely populated frontier. The gold had been formed over a 200-million-year period with the constant recycling of the earth’s crust as minerals precipitated out in streaks or veins. Gold occurs in the crust of the earth at an average concentration of 5 parts per billion. But, the melting and cooling that produced the Sierra Batholith yielded veins of gold-bearing quartz as high as 100 parts per billion.

Most of this gold was trapped far below the surface of the earth, where it remained for tens of millions of years until the crust crumbled and the glaciers took over. The heat of the earth – which had driven the crystal plates to their collisions with the western edge of North America – then melted the rock and boiled out the precious metal. All that remained was for humans to harvest what the earth had collected. And they did so with enormous zeal.

The astonishing news of “Gold! In California!” prompted hundreds of thousands of people from around the world to flock to California in hopes of finding instant riches. They sailed from Australia and China, from Europe and South America. They ventured across the disease-plagued Isthmus of Panama and through the treacherous waters of Cape Horn. And they traveled by foot, wagon and horseback and over the towering Sierras. They abandoned wives and families, homesteads and farms.

Sacramento and San Francisco popped up overnight as did scores of mining camps. Entrepreneurs such as Leland Stanford, Sam Brannan and merchants like Levi Strauss amassed fortunes simply by supplying miners with picks and shovel, tents, food and other items needed to harvest the gold. By 1850, California had become a state … marking the fastest journey to statehood in United States history.

Sam Brannan hit a bad streak when a divorce forced him to liquidate his entire holdings to pay a court-ordered 50/50 division of assets … in cash. He died penniless and establishing a precedent that would plague future husbands who were divorced in California.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

‘We Must Elect World Peace or World Destruction’

An original drawing of the New York City skyline by Donald J. Trump sold for $20,000 at a December 2017 Heritage auction.

By Jim O’Neal

Bernard Baruch (1870-1965) was a financial wizard who earned his sobriquet as “The Lone Wolf of Wall Street” by sticking with his own brokerage firm. In addition to being a highly regarded financier, he became a trusted adviser to a series of U.S. presidents that included Woodrow Wilson, Franklin D. Roosevelt and Harry Truman.

On June 14, 1946, he made a speech to the United Nations Atomic Energy Commission that included a proposal (the Baruch Plan) for the United States to turn over all of its nuclear weapons if all other nations pledged not to produce them. They would also have to agree to an adequate inspection system to ensure compliance. The Soviet Union rejected the plan – despite the fact that America still had the only nuclear weapon monopoly – primarily because Joseph Stalin was paranoid about the West’s control of the United Nations.

Donald Trump

On that same day, the future 45th president of the United States was born in the New York borough of Queens. In 2017, Donald John Trump, the oldest (70) and wealthiest to assume office, became the 19th Republican to become president. The Republican Party has won 24 of the last 40 presidential elections, the most for any party. The first was Abraham Lincoln, who became the 16th president and served until his assassination in 1865.

The Republican Party was founded primarily by anti-slavery activists, ex-Free Soilers (a single-issue party) and ex-Whigs who had thrived from 1834-1854 (electing two candidates, William Henry Harrison and Zachary Taylor to the presidency). However, both of these Whig Party presidents died in office. Millard Fillmore, who became president after Taylor’s death in 1850, was the last Whig president.

History has not been kind to Fillmore and even the Wall Street Journal piled on in 2010 by declaring that Fillmore’s very name connotes mediocrity. One bright spot of his administration that is consistently overlooked is the mission he assigned to Commodore Matthew C. Perry in 1852 to force Japan to open its ports to American trade (or else!). Perry and his fleet of American “Black Ships” with 1,600 men made gunboat diplomacy an effective strategy to force an isolationist country into international trade.

When Commodore Perry’s steamship Mississippi sailed into New York Harbor on April 23, 1855, and he hauled down his flag the following day, Fillmore was long gone. However, the expedition to the China Sea and Japan had been a rousing success. The locked gates of Japan had been opened by virtue of a trade treaty. Today, Japan is our fourth-largest trading partner (behind Canada, China and Mexico) and we have a long-standing, post-World War II security agreement where the United States is obliged to protect Japan in close cooperation with Japanese Self-Defense Forces.

Our current areas of focus are the South China Sea and the North Korean nuclear threat that (theoretically) could lead to world destruction.

The Baruch Plan was remarkably prescient in this regard, as Baruch started his speech in the most provocative way, saying, “We are here to make a choice between the quick and the dead,” and included the line, “We must elect world peace or world destruction.” The baby born while this was going on will be one of the few people directly involved in decisions that guide the outcome of these issues.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Dewey Had It All – Except Maybe a Genuine Connection with Voters

Two scarce Tom Dewey buttons sold for $1,075 at a May 2010 Heritage auction.

By Jim O’Neal

The political tidal wave that washed over the American continent in November 1946 left in its wake a vastly altered landscape. The triumphant Republican Party had polled 3 million more votes than the Democrats, gaining 54 House seats and 12 in the Senate. Even Democratic President Harry Truman’s old seat would be occupied by a conservative Republican and Kentucky elected its first Republican Senator in 22 years.

It was a rout.

It was also a referendum on Truman’s two-year stewardship and a belated rejection of a New Deal without FDR. Senator J. William Fulbright suggested Truman appoint a Republican Secretary of State and then resign, turning the country over to a president the electorate preferred. U.S. News & World Report declared the president’s chances of winning another nomination at less than 50 percent and predicted Tom Dewey of New York would be in the White House in two years.

Dewey then went on the offensive, attacking the Truman Doctrine as inadequate – “Unthinkable we would surrender the fruits of victory after a staggering cost in blood and resources” – and citing the broken pledge to China, failure to give Chiang Kai-shek airplane parts, and grossly inadequate supplies of arms and ammunition. Also, allowing the Soviets to hold the northern half of Korea and building a well-trained army of 200,000, while the American half had no civil government and no military – a political void with ominous consequences. Dewey predicted “23 million Korean people would move from Japanese tyranny to Soviet tyranny and China would be next.”

America was in a hurry to disarm and Truman’s people were not standing up to the Soviets with sufficient conviction, distracted into debating Universal Military Training. Was it courage or inexperience?

Soon the answer would become apparent to everyone. First, labor leader John L. Lewis and 200,000 striking coalminers were humbled by a contempt citation, fined $3.5 million and ordered back to work immediately. “He couldn’t take the guff,” the president wrote. “No bully can. Now I have the autoworkers, steel workers and railroad men to look forward to. They will get the same treatment.”

This was followed by Truman’s promise to protect Greece and Turkey from the communist threat, the creation of the Central Intelligence Agency (replacing the OSS) and the Marshall Plan to rescue Europe. Suddenly, the man who had seemed a political dead duck six months before was flying high. The polls reflected a remarkable comeback by the president. After trailing Dewey 50 to 28, he had drawn even with him in the polls!

Dewey was not naive. He knew the incumbent president would be a tough opponent and any future election would be closer than the pundits were predicting. But he was an experienced politician and had a terrific record of making government work on whatever level he was at. As New York’s famous district attorney, he made the judicial system work as he rounded up the city’s most powerful and infamous gangsters. As governor, he founded a state university, built a thruway, battled cancer and tuberculosis, and never submitted an unbalanced budget. When he left office, state taxes were 10 percent lower than when he had taken office.

Then, after he accepted the nomination to be the Republican candidate for president in 1948, he was buoyed by a steady stream of congratulations. Winston Churchill wired his discreet best wishes from “the English friend who met you on March 12, 1946.” The editors of Who’s Who sent an advance copy listing Dewey’s address as 1600 Pennsylvania Ave. in Washington, D.C. Pollsters and the press almost unanimously projected him as the winner. Ernest Lindley in Newsweek predicted “only a miracle or a series of political blunders not to be expected of a man of Dewey’s astuteness can save Truman from an overwhelming defeat.”

Even Truman’s closet advisors were worried. “We’ve got our backs on the one-yard line with only a minute to play,” explained presidential adviser Clark Clifford.

Amidst the euphoria, the “first lady of American journalism” Dorothy Celene Thompson – who in 1939 was recognized by Time magazine as the second most influential woman in America next to Eleanor Roosevelt – struck a cautionary note. She wondered aloud if Dewey was the man to rouse something more from voters. It takes understanding to really connect … human feelings, humor, compassion, loyalty – qualities that evoke affection and faith, which is different from confidence.

Thompson seemed to be saying only Dewey could defeat Dewey. We know now that may have happened in 1948, and it also may have happened again in 2016. Voters are savvy people and it takes a special quality to really connect – something polls can’t seem to capture.

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

No President has been Removed by Impeachment, Conviction

A 1996 letter President Clinton sent to a journalist, regarding an article that had moved the president, sold for $10,755 at a February 2010 Heritage auction.

By Jim O’Neal

On Jan. 7, 1789, members of the Electoral College cast 69 votes for George Washington to become the first president of the United States, while John Adams, who finished in second place with 34 votes, became the first vice president.

These electors, who had been chosen by white men who were landowners in 10 states, also cast votes for John Jay (9), Robert Harrison (6), John Rutledge (6), Samuel Huntington (2), John Milton (2), Benjamin Lincoln (1), and Edward Telfair (1). Forty-four electors failed to cast a vote.

Bill Clinton

North Carolina and Rhode Island were ineligible since their statehood had not been ratified. New York did not appoint the eight electors they were eligible for since they were deadlocked in their state legislature.

We still use the Electoral College, as established by the Constitution, which has been modified several times and today gives all citizens age 18 and over the right to vote for electors, who in turn vote for the president and vice president (only). On the first Monday after the second Wednesday in December, each state’s electors simultaneously cast their ballots nationwide.

Then on Jan. 6, the electoral votes are counted before Congress and, finally, on Jan. 20, the president is sworn into office. In the case of George Washington, he wasn’t sworn in until April 30, 1789, since Congress didn’t count the electoral votes until April 6.

Exactly 210 years later, on Jan. 7, 1999, the impeachment trial of President William Jefferson Clinton began in the U.S. Senate, with senators sworn in as jurors and Chief Justice William Rehnquist sworn in to preside. President Clinton was formally charged with lying under oath and obstruction of justice.

Four years earlier, he had sexual relations with a 21-year-old unpaid intern in the White House before she was transferred to the Pentagon. Contrary to his sworn testimony in an unrelated sexual harassment case, President Clinton admitted to a grand jury (via closed-circuit television) that he had not been truthful.

On Dec. 11, 1998, the House Judiciary Committee approved three articles of impeachment. On Dec. 19, the full House approved two articles of impeachment: lying under oath to a grand jury and obstructing justice. On Feb. 12, the Senate voted on the perjury charge and 45 Democrats and 10 Republicans voted “not guilty.” On the charges of obstruction of justice, the Senate vote was split 50-50.

This was the third and last time the Senate Judiciary Committee had voted to impeach the president of the United States. Two were found not guilty (Andrew Johnston in 1868 and Bill Clinton), while a third, Richard Nixon, resigned to avoid what was an almost certain guilty verdict. (In 1834, the Senate voted to “censure” Andrew Jackson).

Intelligent Collector blogger JIM O’NEAL is an avid collector and history buff. He is president and CEO of Frito-Lay International [retired] and earlier served as chair and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].