George Clinton – The Intelligent Collector Magazine

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].

Here’s why DeWitt Clinton had real nerve, visionary leadership

This DeWitt Clinton memorial pewter rim went to auction in February 2018.

By Jim O’Neal

If you’re not weary yet of presidential politics, hold on. Bill and Hil Clinton are on a 13-city speaking tour using a conversational format followed by a Q&A session. They are most likely eyeing 2020 as yet another chance to move into a big white house in the 1600 block of Pennsylvania Avenue in Washington, D.C. The current occupants do not seem to have a good chance of making it two more years, but next in line is a family named Pence.

The name “Clinton” was also prominent in Washington, D.C., and NYC during the 18^th and 19th centuries, and perhaps even more pervasively. George Clinton (1739-1812) is generally considered a Founding Father as he participated in the French and Indian War and was a brigadier general in the Continental Army. He was also a delegate to the Continental Congress in 1776, but opposed adoption of the U.S. Constitution. Like Samuel Adams, he finally relented when the Bill of Rights was added.

He then turned to politics and in 1777 was elected (concurrently) to become lieutenant governor and governor of New York. In the second presidential election in 1792, he came in third behind George Washington and John Adams, but ahead of Thomas Jefferson and Aaron Burr. Clinton served four more years as governor of New York and held the record for longest-serving governor (21 years) until it was broken in December 2015 by Terry Branstad of Iowa. Branstad is now the U.S. Ambassador to China.

George Clinton then served as vice president for Thomas Jefferson in his second term (1805-1809) after Jefferson dropped Aaron Burr (presumably because he killed Alexander Hamilton in a duel in 1804). Clinton then served as vice president for James Madison until Clinton’s death in 1812. This was the first time the office of vice president was vacant and also the first time a VP served for two different presidents. Later, John C. Calhoun would serve as vice president for two different presidents (John Quincy Adams and Andrew Jackson) as he unsuccessfully tried to position himself for the top spot.

However, we are more interested in George Clinton’s nephew, DeWitt Clinton (1769-1828), who challenged James Madison for the presidency in 1812. DeWitt was a U.S. Senator from New York, mayor of NYC, and the sixth governor of New York. It was during his time as governor that he made his mark on history.

At the time, the great American rivers on the Eastern seaboard – like the Hudson, Delaware and Connecticut – were woefully underutilized for transportation or commerce. The primary modes for river transportation were limited to the currents, wind, various animals or one’s own feet. And, of course, going upstream against the currents was difficult and essentially impractical. But there were exciting things going on in Europe that would help transform the United States.

James Watt’s coal-fired steam engines were powering the spinning machines that transformed cotton into high-grade cloth. The cost was so low that the material could be shipped all the way to India and still be cheaper than local hand looms. Since England was sitting on huge supplies of coal and the coalmines could use the abundance of labor, it was a near-perfect situation. The remarkable Industrial Revolution was in full swing, transforming a nation of shopkeepers into a modern nation. The same near-perfect balance occurred in steel production following Henry Bessemer’s technique that obsoleted iron.

Attaching a steam engine to a boat was the next big thing and America’s ingenuity took over. By 1807, an American who had spent most of his life in England and France decided to return to America and tackle this obvious opportunity. Robert Fulton’s boat, the North River Steamboat, was 133 feet long with a tonnage of 160. It literally dwarfed all other experimental steamboats and was ready for a trial run to Albany.

Most skeptics believed Fulton would not be able to ever move 1 mile per hour or be of any utility. With smoke plumes marking its progress, the North River headed north on the Hudson. It arrived in Albany in 32 hours, averaging nearly 5 mph … upstream. On the return, it was back in a mere 30 hours. Vindicated, Fulton predicted it would soon be providing quick and cheap conveyance on the Mississippi, Missouri and others. He was right, as the Mississippi, Ohio and every other major river would soon have steamboats churning up and down their waters.

Even as steam had conquered America’s rivers, other geographic features limited commerce. Mountains were near impossible, and flat lands required the considerable exertion of horses, oxen and people. Land-based commerce – which was rapidly becoming the major activity – was both limited and expensive. One solution was canals and that’s where Governor DeWitt Clinton re-enters the picture. He personally championed the Erie Canal when others (including Thomas Jefferson) thought the idea was “little short of madness.”

Thanks to Clinton’s unwavering efforts to overcome all objections, on July 4, 1817, construction began on a 363-mile canal that was dug all the way from Lake Erie to Albany, N.Y. … blasting its way through mountains with powder from E.I. Du Pont de Nemours; the powder was DuPont’s only product for the company’s first 60 years of its existence. It took eight years and a budget of $6 million, raised from bonds from the public rather than squabbling with state bean counters. It was a lot of money; for perspective, the entire federal government budget for 1811 was $8 million. So hats off to a Clinton with real nerve, perspective and the kind of leadership vision that built this nation.

As an aside, today the federal government spends $8 million every 56 seconds. Maybe that’s why we have bridges that crumble, airports that lag third-world countries and we owe someone $22 trillion.

John Adams saw the White House as a home for ‘honest and wise men’

A vintage creamware punch bowl, commemorating “John Adams President of the United States,” sold for $15,535 at a March 2008 Heritage auction.

By Jim O’Neal

As the states prepared for the first presidential election under the new Constitution, it was clear that George Washington was the overwhelming favorite to become the first president of the United States.

Under the rules, each state would cast two votes and at the February 1789 Electoral College, all 69 Electors cast one of their votes for Washington, making him the unanimous choice of 10 states. Two of the original Colonies (North Carolina and Rhode Island) had not yet ratified the Constitution, and New York had an internal dispute and did not chose Electors in time to participate. Eleven other men received a total of 69 votes, with John Adams topping the list with 34 votes, slightly less than 50 percent. He became the first vice president.

Four years later, there were 15 states (Vermont and Kentucky) and the Electoral College increased to 132 Electors. Again, Washington was elected president unanimously, with 132 votes. Adams was also re-elected with 77 votes, besting George Clinton, Thomas Jefferson and Aaron Burr. All three of the runner-ups would later become vice presidents, with Clinton serving a term for two different presidents (Jefferson and Madison). Jefferson had cleverly picked Clinton as his VP due to his age, correctly assuming Clinton would be too old to secede him … thus ensuring that Secretary of State James Madison would be the logical choice. Clinton would actually be the first VP to die in office.

Two-time Vice President John Adams would finally win the presidency on his third try after Washington decided not to seek a third term in 1796. Still, Adams barely squeaked by, defeating Jefferson 71-68. Jefferson would become vice president after finishing second. It was during the Adams presidency that the federal government would make its final move to the South after residing first in New York City and then Philadelphia.

This relocation was enabled by the 1790 Residence Act, a compromise that was brokered by Jefferson with Alexander Hamilton and James Madison, with the proviso that the federal government assume all remaining state debts from the Revolutionary War. In addition to specifying the Potomac River area as the permanent seat of the government, it further authorized the president to select the exact spot and allowed a 10-year window for completion.

Washington rather eagerly agreed to assume this responsibility and launched into it with zeal. He personally selected the exact spot, despite expert advice against it. He even set the stakes for the foundation himself and carefully supervised the myriad details involved during actual construction. When the stone walls were rising, everyone on the project assembled, laid the cornerstone and affixed an engraved plate. Once in the mortar, the plate sank and has never been located since. An effort was made to find it on the 200th anniversary in 1992. All the old maps were pored over and the area was X-rayed … all to no avail. It remained undetected.

The project was completed on time and with Washington in his grave for 10 months, plans were made to relocate the White House from Philadelphia. The first resident, President John Adams, entered the President’s House at 1 p.m. on Nov. 1, 1800. It was the 24th year of American independence and three weeks later, he would deliver his fourth State of the Union address to a joint session of Congress. It was the last annual message delivered personally for 113 years. Thomas Jefferson discontinued the practice and it was not revived until 1913 (by Woodrow Wilson). With the advent of radio, followed by television, it was just too tempting for any succeeding presidents to pass up the opportunity.

John Adams was a fifth-generation American. He followed his father to Harvard and dabbled in teaching before becoming a lawyer. His most well-known case was defending the British Captain and eight soldiers involved in the Boston Massacre on March 5, 1770. He was not involved in the Boston Tea Party, but rejoiced since he suspected it would inevitably lead to the convening of the First Continental Congress in Philadelphia in 1774.

He married Abigail Smith … the first woman married to a president who also had a son become president. Unlike Barbara Bush, she died 10 years before John Quincy Adams actually became president in 1825. Both father and son served only one term. Abigail had not yet joined the president at the White House, but the next morning he sent her a letter with a benediction for their new home: “I pray heaven to bestow the best blessing on this house and on all that shall hereafter inhabit it. May none but honest and wise men ever rule under this roof.” Franklin D. Roosevelt was so taken with it that he had it carved into the State Dining Room mantle in 1945.

Amen.

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].

Jefferson Stretched Constitution to its Limit

By Jim O’Neal

Thomas Jefferson was 57 years old when he was sworn in as president on March 4, 1801, in a simple ceremony in Washington, D.C. He was the first president to take office in the new capital, then a city of 6,000, but without representation in Congress. In 1961, the 23rd Amendment to the Constitution granted the district one non-voting, at-large delegate to the House of Representatives and three electoral votes in presidential elections, but no representation in the U.S. Senate. In 1973, they were granted limited self-government, which includes a mayor and a city council with 13 elected members.

Since the passage of the amendment, the district’s three electoral votes have been cast for the Democratic Party’s presidential and vice presidential candidates in every election. They are bound by law to never have more electoral votes than a state (in this case Wyoming, which has three).

Denounced as a radical and atheist by his political opponents, Jefferson became the first leader of an opposition political party to wrest control of the national government from the party in power. Despite grim prophecies by the outgoing Federalists that the Constitution would be overthrown, he proved to the world the strength of the American republic and its democratic system. Jefferson believed the United States should remain an agrarian country of small farms and a national government that offered little interference in the lives of its citizens. He warned of the evils of large cities – with disease, poverty and centralized power that fostered corruption.

However, as president, in his own words, he “stretched the Constitution till it cracked” by using presidential powers to double the size of the country, presumably to give people room to spread out and avoid dense urbanization (the Louisiana Purchase), and discharge major political appointees of his predecessor. Chief Justice John Marshall restrained him from applying the same principle to federal judges.

After suffering through the embarrassment of the Aaron Burr-Alexander Hamilton affair, he chose the elderly George Clinton for vice president in his second term, with the obvious intent to ensure a VP that was too old to succeed him. He then orchestrated the election of his old Virginia friend and Secretary of State James Madison to become the fourth president.

Refusing all pleas for a third term, he more than welcomed his pending retirement, writing “Never did a prisoner released from his chains feel such relief I shall in shaking off the shackles of power … I thank God for the opportunity of retiring from them without censure and carrying with me the most consoling proofs of public approbation.”

For his epitaph, he asked for “not a word more” about his time as vice president or president. After 17 years in retirement, his wish was granted and his cherished University of Virginia (which he founded) and the Declaration of Independence seem fitting memorials for this remarkably versatile man to which we all owe an eternal debt of gratitude.

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 Chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Jackson, Calhoun Divided in Office, United on Currency

The Confederate States T1 $1000 Montgomery Issue note, showing John C. Calhoun on left and Andrew Jackson on right, is an iconic rarity in the American paper money canon. This example realized $76,375 at an October 2015 Heritage auction.

By Jim O’Neal

“Posterity will condemn me more because I was persuaded not to hang John C. Calhoun as a traitor than for any other act in my life.” – Andrew Jackson in his final days before death

Such was the relationship of President Jackson and his Vice President John Caldwell Calhoun. Calhoun had also served as vice president in the previous administration of John Quincy Adams (1825-1829) and then won reelection in 1828 as he wisely switched to the more popular Jackson.

He thus became the second vice president to serve under two presidents, following in the footsteps of George Clinton (Thomas Jefferson and James Madison).

However, a series of disagreements between Jackson and Calhoun totally destroyed their tenuous relationship and Calhoun resigned in late 1832 before completing his term. This was a first for the vice presidency that would not be repeated until much later when Spiro Agnew was forced out over criminal actions.

One small irony is that Jackson/Calhoun are the only president/vice president to be featured together on currency printed in the United States. In 1861, the Confederate States of America issued a series of $1,000 bank notes with portraits of the two men featured prominently.

And there they shall remain together for a long time.

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.