Eliminating national debt will require a bit of financial wizardry

An intimate and honest letter by John Adams to Vice President Elbridge Gerry, dated April 26, 1813, sold for $46,875 at an October 2014 Heritage auction.

By Jim O’Neal

President James Madison set the rather dubious record of having both of his vice presidents die in office. George Clinton went first on April 20, 1812. Clinton also set a record as the first person to lie in state at the Capitol. However, it was for only two hours pending finalization of his burial services.

Then Vice President Elbridge Gerry died on Nov. 23, 1814, during Madison’s second term as president. Gerry’s name is still in common use today … “gerrymandering” is a way to draw voting districts to favor a candidate or political party. Gerry also holds the distinction of being the sole signer of the Declaration of Independence to be buried in the nation’s capital. He is interned at the Congressional Cemetery, which is the only “cemetery of national memory” founded before the Civil War. Although it is privately owned, the federal government has 806 plots that are used for ex-members of importance.

Neither VPs Clinton nor Gerry were replaced, since the Constitution at the time did not have a provision for filling a vice presidential vacancy. If a VP died, the job was held open pending the next election. Congress finally got around to addressing this in 1967 with the ratification of the 25th Amendment. In the aftermath of President John F. Kennedy’s assassination, the 25th provides the specific procedures for replacing the president or vice president in the event of death, removal, resignation or incapacitation (better late than never!).

Clinton had earlier served as Thomas Jefferson’s second vice president (Aaron Burr was the first) and was one of two vice presidents who served under two different presidents. John C. Calhoun was the other to have this iffy honor.

Calhoun was VP for John Quincy Adams and then Adams’ successor, Andrew Jackson. Calhoun then resigned the vice presidency to become a senator from South Carolina. The South Carolina legislature had voted to nullify federal tariff laws and threatened to secede from the Union if the issue was not resolved. Calhoun, ever the politician, thought the tariff issue could best be resolved by Congress and he thought he would be of more help to South Carolina as a senator.

However, Jackson began mobilizing federal troops to send to Charleston and made headlines by stating he would hang Calhoun if South Carolina went ahead with their threat to secede from the Union. In December 1832, Jackson issued a “Proclamation on Nullification,” warning that disunion by force was treason! Recall that this was nearly 30 years before the Civil War started.

President Jackson remained steadfast on federal tariffs. First, he was adamant that the Constitution trumped states’ rights. Asked if he had a message to those who threatened to secede, he replied: “Yes, give them my compliments and say that if a single drop of blood is shed in opposition to the laws of the United States, I will hang the first man upon the first tree I can reach!”

Secondly, he knew the federal tariffs were critical to his firm pledge to pay off the national debt. Remarkably, Jackson made good on his promise to eliminate the national debt. On Jan. 8, 1835, the federal government paid off 100 percent of the national debt … the first time in the history of the country. Fittingly, it was the 20th anniversary of the Battle of New Orleans. The following year, an even more astonishing event occurred. President Jackson approved returning surplus treasury funds to individual states.

With the current national debt at more than $22 trillion, and another $100 trillion in liabilities (Social Security and Medicare), I suspect zero national debt will require a degree of financial wizardry not seen since Bernie Madoff was reluctantly letting people give him their money to invest.

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].

History Tends to Overlook the Man Who Originated Gerrymandering

John Trumbull’s famous painting The Declaration of Independence adorns the reverse of the current $2 bill. Somewhere in the group is Elbridge Gerry.

By Jim O’Neal

“If everyone here was a Gerry, the Liberties of America would be safe against the Gates of Earth and Hell.” – John Adams, July 15, 1776, letter to James Warren, the Second Continental Congress

Adams was praising Elbridge Gerry. Anytime the delegates from the middle colonies started to waver over the issue of independence, Gerry was there to persuade them that such a provocative action was needed to secure the future of America.

Elbridge Thomas Gerry was only 12 years younger than George Washington and was admitted to Harvard College at age 13. He earned B.A. and M.A. degrees. He then divided his time between the family garment business and both state and federal governance.

Gerry served in the U.S. House of Representatives during the first and second Congresses (1789-1793). Earlier, after being elected to the Second Continental Congress, he signed the Articles of Confederation and the Declaration of Independence, but was one of three men – in addition to George Mason and Edmund Randolph – who refused to ratify the U.S. Constitution. Gerry was stubbornly adamant that it should include a Bill of Rights to provide protection to individuals.

History proved him correct and our current Bill of Rights is foundational for many of the freedoms we now take for granted.

Then as governor of Massachusetts (1810-12), he approved a redistricting plan that ensured Democratic-Republican domination of the state. The shape of one of the new districts resembled that of a salamander, prompting Benjamin Russell, editor of the Boston Gazette, to coin the term “gerrymander.” This has entered our political lexicon to signify redistricting for political advantage.

Thomas Jefferson had been elected president in 1800 and again in 1804. Aaron Burr was VP during his first term and George Clinton (the first governor of New York) served as VP in the second term, 1805-09. Clinton was also elected VP in 1808 with James Madison and thus became the first VP to serve two presidents (John Calhoun would later match this feat). However, Clinton died on April 20, 1812, before the election and there was no provision to replace him.

When James Madison was nominated for his second term in 1812, the Democratic-Republican party selected the old reliable Elbridge Gerry to be his running mate (after John Langdon declined). They were both elected, however Gerry died in November 1814 after serving only about 21 months.

Thus James Madison earned the dubious distinction of being the only president to have two vice presidents die in office. No one particularly cared due to the nature of the job and its insignificance.

Elbridge Gerry was buried in the Congressional Cemetery in Washington, D.C. He is the only signer of the Declaration of Independence to be buried in the nation’s capital. He had married a much younger woman – Ann Thompson (James Monroe was best man) – and she holds the distinction of being the last surviving widow of any signer of the Declaration.

Today, gerrymandering has become an art form and voting districts are sliced and diced by ZIP code to create discrete groups of like-minded voters. Political junkies are in broad agreement that this results in major advantages to incumbent officeholders and significantly limits challengers from opposing parties.

Despite Mr. Gerry’s name now only remembered as a tactical political activity, a few avid paper-money fans (including moi) know that Elbridge Gerry is included in John Trumbull’s famous painting The Declaration of Independence that adorns the reverse of the current $2 bill (1976-), with Thomas Jefferson on the obverse. There are several earlier $2 bills with both Hamilton and Jefferson, as well as a National Bank note known as a “Lazy Deuce” due to an odd design.

The Trumbull painting is sometimes confused with the signing of the Declaration when in fact it depicts the five-man drafting committee presenting it to Congress on June 28, 1776. Oddly, there are only 42 of the 56 attendees depicted. But Elbridge Gerry is there for sure.

Now you know.

P.S. One theory is that John Trumbull could not get good resemblances of the 14 missing attendees. Good enough for me.

Jim O'NielIntelligent 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 Chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].