It’s Hard to Overestimate the Role of Washington in our Independence

A 1776 $1 Continental Dollar, the first representation of the basic unit of the U.S. coinage system, sold for nearly $1.53 million at a January 2015 Heritage auction.

By Jim O’Neal

From Sept. 4 to Oct. 26, 1774, a group of delegates from every colony except Georgia met in Philadelphia in response to the British imposition of the Intolerable Acts. Although declaring independence was not the purpose of the meeting – sympathies ranged from loyalty to rebellion – they did pass 10 resolutions enumerating their rights and agreed to meet again if their grievances were not addressed by the Crown.

They met again in May 1775 and in June they appointed George Washington commander of a newly founded Continental Army. On July 4, 1776, the Congress issued a Declaration of Independence.

This upset King George III, who was an insecure man of average intelligence, but bewildered by the rash of constitutional arguments the Americans were asserting. He was the third of the Hanoverian Kings (his father had died and his grandfather still spoke with a deep German accent) and was firmly convinced the welfare of Great Britain was heavily reliant on the American Colonies.

The Colonies had become a major importer of British goods, surpassing even the West Indies, and his greatest nightmare was any interruption of this trade. “If we lose the American Colonies, we shall sink back into obscurity and be just a small, insignificant island once again.” He was adamant about not letting this occur.

George Washington by Joseph Christian Leyendecker.

By then, the population in America was 2.5 million (500,000 slaves, of which 200,000 were in Virginia), living in 13 Colonies and uniting for independence, despite the government being in total disarray. Some had colonial governments in place, but in colony after colony, revolutionary leaders had supplanted official British rule.

The Second Continental Congress convened in May 1775 in Philadelphia right after the Battles of Lexington and Concord and soon evolved into a national entity. After the formal Declaration of Independence, all that was left to do was defeat a vastly superior British Army, which was supremely confident its 5,000 soldiers could march the entire length, quashing any resistance as they went. We all know how this ended, but the tribulations of an underfunded, out-manned army are still inspiring.

It would be hard to overestimate the personal contributions and leadership that George Washington provided, and to call him “indispensable” is an understatement. Absent his presence, a very different outcome was highly likely. The “Father of Our Country” is one individual who will not be lost in the sands of 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 chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Reagan’s Last Christmas in Office Marked by Memorable Snowy Fairyland

1980s-ronald-reagan-win-one-for-the-gipper-signed-photograph
A photograph signed by Ronald Reagan with the inscription “Win one for the Gipper” sold for $8,365 at a November 2014 Heritage auction. It’s considered the most famous line Reagan spoke on the silver screen, in 1940’s Knute Rockne, All American.

By Jim O’Neal

In 1980, Ronald Wilson Reagan became the oldest man (69) to be elected president. He extended his record in 1984 when he was reelected at age 73. For their last Christmas in the White House, the Reagans wanted to make a splash. The East Room was transformed into a snowy fairyland, with full-size trees and a gift-filled sleigh occupied by carolers and drawn by lifelike horses, all powdered with glittery “snow.” It was a vintage Hollywood image.

Thousands of visitors filed by and looked on in both delight and amazement at the dazzling scene. Nothing remotely like this had ever been seen in the White House. It was a playful farewell by two whose roots were as firmly planted in Hollywood as John F. Kennedy’s were in Boston or Lyndon B. Johnson’s on the banks of the Pedernales River.

On his final day in office, Jan. 20, 1989, President Reagan went to the Oval Office early and met with his Chief-of-Staff Ken Duberstein and General Colin Powell, the National Security Advisor. Both of them said reassuringly, “Mr. President, the world is quiet today.” After they left, Reagan also left the office, stopping at the door for one last look. George and Barbara Bush were arriving in the entrance hall below.

On the route from the Capitol to the White House, the incoming President George H.W. Bush and first lady took a cue from the Carters, leaving their car from time to time to walk along Pennsylvania Avenue to greet the crowds. They walked up the driveway on the same path all their predecessors had followed since James Monroe’s second term, 168 years before.

History linked the inauguration of George H.W. Bush and George Washington. It had been exactly 200 years since the first president began serving his first term.

President Bush had an extensive background that included two terms in Congress, ambassador to the United Nations, director of the CIA, liaison to China, and eight full years as vice president. He had easily defeated Michael Dukakis to win the presidency, but in the process famously declared “Read my lips. No new taxes!” – words that would haunt him.

Although favored for reelection in 1992, he got caught in a buzz saw when third-party candidate Ross Perot siphoned off nearly 19 percent of the popular vote and a young governor from Arkansas won with a plurality of 43 percent. William Jefferson Clinton and Al Gore Jr. became the youngest president and vice president in history.

George H.W. Bush became the 10th incumbent president to lose in a bid for reelection after becoming the first sitting vice president to be elected president since Martin Van Buren in 1836.

The strange world of presidential politics. We love it.

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].

 

With Discovery of Gold, President Polk Opened Massive Migration West

half-plate-daguerreotype-of-california-gold-rush-mining-scene-ca-1850s
This half plate daguerreotype of a California gold rush mining scene, circa 1850, sold for $28,680 at a June 2008 Heritage auction.

By Jim O’Neal

Reports of gold in California came to the president as early as June 1848. Part of the talk was idle speculation; part was based on tales of settlers and soldiers plus myths of Spanish treasure troves. A succession of adventurers, spies and famous Western characters like Kit Carson had slipped quietly up the stairs into President James Polk’s office to tell of the vast domain far to the west.

The lost mines of El Dorado had long fascinated nearly everyone.

The first official report on “gold diggings” came to Polk in August 1848. Navy Lieutenant Edward Fitzgerald Beale showed the president some actual gold nuggets. Authoritative and “eyewitness” accounts of California gold started popping up in various newspapers. In a message to Congress on Dec. 5, 1848, Polk outlined the possible scope of the precious metal mines and the extraordinary potential that had been corroborated by authentic reports.

Two days later, a courier from California arrived at the War Department with a mysterious package and more dramatic evidence of western riches. As soon as Secretary of War William Marcy unwrapped the parcel, he took it directly to President Polk. It contained a tea caddy crammed full of gold nuggets and dust that weighed over 230 ounces.

They quickly decided to send the largest “lump” to Philadelphia to be minted into coins and put the rest on display in the War Office. Visitors of every class stood in long lines just to see it and it became the dominant subject everywhere. On Dec. 12, Polk predicted the coming 12 months would witness “a large population … attracted to California by its mineral wealth.”

In his History of California, historian Hubert Bancroft wrote of Polk’s prophecy. “The interest in California became all-absorbing, creating a restlessness which finally poured a human tide into San Francisco Bay, and sent hundreds of caravans over the plains and mountains.”

However, the Polks moved out of the White House on Saturday, March 3, 1849, to 10 rooms prepared for them at the Willard Hotel. He had promised to only serve one term and his time in the WH had taken an enormous toll on his health. He had the shortest retirement of any president and died of cholera 103 days after leaving office. Along with George Washington, Andrew Johnson, Chester Arthur, Calvin Coolidge and LBJ, he was one of six presidents to die while their direct successor was in office.

He totally missed the Gold Rush and the massive migration west he was responsible for.

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].

After Disaster of 1812, President Madison and First Lady Recovered Their Legacies

james-madison-circa-1812-meissen-saucer
This James Madison Meissen saucer, circa 1812, sold for $13,145 at a November 2011 Heritage auction. Little material culture was produced during Madison’s presidency.

By Jim O’Neal

Three days after the fall of Washington in the War of 1812, James and Dolley Madison returned in the wake of the British departure. They visited the ruins of the capital and White House, which sunk them into melancholy.

That the president of the United States had been burned out of his house mortified America, and the symbolic impact transcended the sad reality. Madison was accused of cowardice because he had fled, and the press claimed Dolley could have saved more than she did … a lot more. A Washington newspaper even stated angrily that a positive result of burning the White House was that it ended her queenly entertaining.

These difficult times came to a sudden, happy ending with the news of the Battle of New Orleans and the return of the American delegation from Ghent with a peace treaty. The president jubilantly proclaimed the war was at an end. While the glory of the hour went to General Andrew Jackson, both the president and first lady recovered their legacies and good names.

The White House had been burned to a shell, but it was the neatest of fires as the refuse had fallen precisely within the stone walls and no debris was scattered on the grounds. Crews dug for salvage in the deep bed of ashes and rubble that filled the basement, however not much was worth saving. The refuse was simply thrown into a nearby gully and attention turned to rebuilding (an important distinction).

A bill for rebuilding was rammed through Congress in two days to make sure Washington, D.C., remained the capital – and not some more-centralized area beyond the mountains, like Cincinnati, as some had proposed. Any “Phoenix” would rise from these ashes. As President Madison carefully pointed out, “the bill specifically stated ‘rebuilding’ not relocation.”

Considering that it took nearly 10 years to build the first WH, reconstruction moved along quickly, but not fast enough for the man who occupied the unfinished White House in October 1817.

A tall, blush-faced Virginian who looked all of his 58 years, James Monroe was the last luminary of the Revolutionary generation to occupy the presidency. Like George Washington, he had fought in the War of Independence and had been wounded at Trenton. Years later, he served as a delegate in negotiations with France for the Louisiana Purchase. During the Madison administration, he had been Secretary of State and Secretary of War, always with an eye on the presidency.

When he finally reached his goal, he knew exactly what he wanted to accomplish. Refusing to act as head of his party, he instead insisted that the war had united all Americans into one and that political parties were no longer needed! He proceeded to usher in “The Era of Good Feelings.”

We miss him.

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].

Insidious Practice of Slavery Violated Every Principle that Men of Goodwill Supported

thomas-hart-benton-slave-master-with-slaves-study-for-the-american-historical-epic
This crayon with pencil and ink on paper by American painter Thomas Hart Benton (1889-1975), titled Slave Master with Slaves (Study for The American Historical Epic), circa 1926, realized $35,000 at a December 2013 Heritage auction.

By Jim O’Neal

Slavery was the great exception to the rule of liberty proclaimed in the Declaration of Independence and established in the U.S. Constitution. The first African slaves (about 40 in all) were brought to the North American colony of Jamestown, Va., in 1619 to aid in the production of lucrative crops like tobacco.

By the time of America’s founding, the number had grown to 500,000, mostly in the five southernmost states. Slavery was never widespread in the North, but many profited indirectly by the practice. Between 1774 and 1804, all of the northern states had abolished slavery, but the “peculiar institution” remained absolutely vital to the South.

Even as the U.S. Congress outlawed the African slave trade in 1808, domestic trade flourished, and the slave population more than tripled over the next 50 years. By 1860, it was up to 4 million, primarily in cotton-production areas of the South.

One naive hope had been that slavery would slowly die as a simple matter of business economics. In 1776, Adam Smith (The Wealth of Nations) argued that the plantation system was uneconomic since slave labor cost more to maintain than laborers paid a competitive wage. But, in 1793, Eli Whitney invented the cotton gin, making slave-based production lower in cost. The insatiable demand for cotton from Europe was irresistible to the southern agrarian-based economy.

Overlooked in all of this was a brilliant insight by Smith. He noted that slavery ended in the Middle Ages in Europe only after the state and church became separate and strongly independent. His insight was that it is nearly impossible to end slavery in free, democratic forms of government, primarily because many of the legislators would also be slave owners and unlikely to act in ways that were not in their best interest.

Similar arguments later appear in the works of French philosopher Auguste Comte, known for his ideas regarding the “separation of the spiritual and the temporal.”

That was exactly the situation in the United States since many of the founders – most notably George Washington, Thomas Jefferson and James Madison – owned slaves and the South had always been dominated by self-interest. The obvious implication is that war was not only probable, but inevitable and unavoidable.

So the inexorable forces of profit versus human rights continued to accelerate, with only pauses, as the deeply conflicted country tried to find compromises (e.g. 1820) that simply delayed the inevitability of war. Kick-the-can strategies never achieve anything except temporary lulls.

Quite predictably, ours required a bloody civil war to (finally) reconcile the Constitution and an insidious practice of slavery that violated every principle that men of goodwill supported.

Both Smith and Comte tried to warn us, but their theories did not include any useful solutions, except perhaps to implement a kingdom … the very thing we were fleeing.

Even after 620,000 lives were lost in the Civil War, a number that exceeds all our other conflicts combined … and with the passage of 150 years … we are still struggling with race and inequality as our legislators try to find compromises.

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].

Laws Curtailing Free Speech Rejected by Americans – 200 Years Ago

Thomas Jefferson reaffirmed the rights of Americans to “think freely and to speak and write what they think.”

By Jim O’Neal

After serving two full terms as president (1789-97), George Washington was more than ready to leave Philadelphia, where he had lived since relocating from New York City. He returned to his home in Mount Vernon with a profound sense of relief. The plantation had been losing money during his extended absence, leaving him in a financial quandary of being relatively wealthy but cash-poor. Virtually all of his assets were in non-liquid land and slaves.

However, little did he expect that his successor, Vice President John Adams, would allow relations with France to deteriorate to the point of a possible war. Diplomacy had failed and on July 4, 1798, President Adams was forced to offer Washington a commission as Lieutenant General and Commander-in-Chief of the Army with the responsibility of preparing for a potential war. Washington accepted, but wisely delegated the actual work to his trusted friend Alexander Hamilton. All of this happened a mere 17 months before his death at his beloved Mount Vernon.

War with France was avoided, but President Adams utilized some highly controversial tactics, including the Alien and Sedition Acts. These consisted of four bills passed by a highly partisan, Federalist-dominated Congress that were signed into law by Adams in 1798.

Although neither France nor the United States actually declared war, rumors of enemy spies (aliens) or a surprise French invasion frightened many Americans and the Alien Acts were designed to mitigate the risk. The first law, the Naturalization Act, extended the time it took immigrants to gain citizenship from five to 14 years. Another law provided that once war was declared, all male citizens of an enemy nation could be expelled. It was estimated that this would include 25,000 French citizens in the United States. The president also was authorized to deport any non-citizens suspected of plotting against the government during wartime or peace.

The Sedition Act was much more insidious. Sedition means inciting others to resist or rebel against lawful authority. The act first outlawed conspiracies “to oppose any measure of the government.” Further, it made it illegal for anyone to “express any false, scandalous and malicious writing against Congress or the President.” It included published words that had BAD INTENT to DEFAME the government or cause HATRED of the people toward it.

Secretary of State Timothy Pickering was in charge of enforcement and pored over newspapers looking for evidence. Numerous people were indicted, fined and jailed to the point that it became a major issue in the presidential election of 1800. Thomas Jefferson argued the laws violated the First Amendment.

The voters settled the debate by electing Jefferson.

In his inaugural address, Jefferson confirmed a new definition of free speech and press as the right of Americans “to think freely and to speak and write what they think.”

The U.S. Supreme Court never decided whether the Alien and Sedition Acts were constitutional. The laws, quite conveniently, expired on March 3, 1801, John Adams’ last day in office.

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].

When Nation Faces Uncertainty, Good Leaders do What They do Best

Merritt Mauzey’s Depression-era oil on masonite, Uncle Fud and Aunt Boo, realized $77,675 at a December 2007 Heritage auction.

By Jim O’Neal

In January 1931, a 46-year-old tenant farmer drew the nation’s attention to a small event in rural Arkansas. Homer C. Coney harvested corn and cotton on land he rented for $8 an acre. But a tremendous drought the previous summer meant that most farmers had no crop, no money and no way to survive the winter.

Coney tried to sell his truck for $25 … no takers. So he and his family – trapped in a one-room shack – tried to exist on a Red Cross relief ration of $12/month. Coney, his wife and five sons lived on beans mixed with lard (to “give it flavor”).

A young neighbor mother visited the family frantically seeking help because her children had not eaten for two days. Coney said, “Lady you wait here. I am a-going to get some food over at Bells – the Red Cross man that never give out nothing.” In England, Ark., Coney discovered a big crowd of people, hungry since the Red Cross office there was out of food vouchers. Soon, there was a crowd of 500 people who confronted the mayor and chief of police. “We’re not beggars and will work for 50 cents a day, but we will not let our families starve.”

All over the country, people read about the brave souls who gathered to demand food. “500 Farmers Storm Arkansas Town Demanding Food for Their Children,” read the front page of The New York Times. “You let this country get hungry and they are going to eat, no matter what happens to budgets, income taxes or Wall Street values,” wrote populist Will Rogers in his newspaper column. “Washington mustn’t forget who rules when it comes to a showdown.”

The Great Southern Drought of 1930 was a catastrophe, to be sure. But this act of desperation was only a small part of the bigger issue in the new decade. In 1930, 26,000 businesses collapsed. In 1931, 28,000 more, and by the beginning of 1932, 3,500 banks, holding billions in uninsured savings, went under. 12 million people (25 percent of the workforce) were unemployed and real earnings fell by one-third. In some cities, it was worse; 50 percent of Chicago was out of work, 80 percent of Toledo.

Soup lines stretched as far as the eye could see. America the land of possibility was the land of despair. In 1931, the people of Cameroon in West Africa sent a check to the people of New York for $3.77 to aid the “starving.” About 20,000 veterans of WWI arrived at the U.S. Capitol to demand early payment of their pensions. On July 28, 1932, General Douglas MacArthur – side by side with Major Dwight Eisenhower with a parade of infantry, cavalry and tanks – routed the squatters as ordered.

Today, it is hard to imagine the level of expectation that greeted President Franklin D. Roosevelt when he took the reins from the much-maligned Herbert Hoover. However, the Democratic platform in 1932 was much the same as Hoover’s: a balanced budget and a curb on spending. Even the term “New Deal” was a fluke line from a nomination acceptance, until it surprised everyone and became popular.

But Roosevelt had a supreme confidence, enormous energy, and a determination equal to that of George Washington and Abraham Lincoln. He quickly cribbed a line from Henry David Thoreau (“Nothing is so much to be feared as fear”), began fireside chats with the American people from a room with no fireplace, and started leading.

That’s what good leaders do.

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].

Robert Morris the Financier who was Almost Alexander Hamilton

This Fr. 288 $10 1880 Silver Certificate, PCGS Choice New 63PPQ, featuring Robert Morris realized $19,975 at a January 2014 auction.

By Jim O’Neal

During the Revolutionary War, one of the more frustrating issues facing General George Washington and his officers was the inconsistent supply of guns, ammunition and basics like shoes, coats, uniforms and food. Then, of course, there was the issue of money to pay the troops.

The Continental Congress struggled to perform the basic functions of a “treasury,” but without the power to tax, they had to rely on loans from foreign governments and domestic support (less than 50 percent of the people were in favor of war). Their FICO scores were low and the paper money printed was “Not worth a Continental!”

By 1781, the United States was in a fiscal crisis. The national debt was $25 million, public credit markets had collapsed and the British were firmly in control of the sea and coastline. Congress decided to act by abandoning their ineffectual committees in favor of an executive structure.

Robert Morris was unanimously elected Superintendent of Finance.

Morris was truly one of the Founding Fathers and was one of two men (Roger Sherman) to have signed the Declaration of Independence, Articles of Confederation, and the U.S. Constitution. Next to George Washington, he was considered the “most powerful man in America” and used his personal fortune to shore up the country’s finances.

Later, caught in the Panic of 1796-97, Morris was cast into debtors’ prison after he speculated on millions of acres of land and could not pay taxes or interest on his leveraged loans. The financial wizard of the Revolution was cast into debtors’ prison for three years until Congress passed a special bankruptcy law in 1800, primarily to free him.

The Department of Treasury was established by an Act of Congress in 1789. When George Washington decided to add a Treasury Secretary to his cabinet, his first choice was Robert Morris. However, Morris convinced him to pick Alexander Hamilton, despite his polarizing personality.

It is interesting to speculate whether biographer Ron Chernow and composer Lin-Manuel Miranda would be the spectacular toasts of Broadway with a character named “Morris.”

P.S. The bust of Robert Morris is featured prominently on the $10 Silver Certificate and the ultra-rare $1,000 Legal Tender note of 1863. There are only two or three in existence and the only one I’ve seen was in the Frank Levitan Collection auction in 1998. I suspect it would bring several million dollars in today’s market. It is a beautiful design.

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].

Today’s Political Schisms Would Not Surprise George Washington

A painting by Jeremiah Paul Jr. (d. 1820) depicting George Washington taking leave of his family as he assumes command of U.S. forces during the “quasi-war” with France in 1798, realized $47,500 at a May 2015 Heritage auction.

By Jim O’Neal

George Washington was a staunch opponent of political parties due to the corrosive effect he (strongly) believed they would have on all levels of government.

As president, Washington worked hard to maintain a non-partisan political agenda, despite significant differences that existed right in his cabinet.

His 1796 farewell address was replete with advice to the country, and by extension, to future leaders. One prominent warning was to avoid the formation of political factions that would pose a danger to the effectiveness of government (think gridlock in Washington, D.C.). A second peril was entanglements with foreign governments, since they inevitably lead to war. The examples here start with the War of 1812, two World Wars, Korea, Vietnam and end with the Russian threats to NATO, the China Sea and the remarkably complex situation in the Middle East and North Korea.

After Washington’s retirement, John Adams and Alexander Hamilton ignored his sage advice and wasted little time confronting the Democratic-Republicans, headed by Thomas Jefferson and James Madison. Adams became the first (and last) Federalist president. He was easily defeated in 1800, after one term, by Jefferson and Aaron Burr. Adams finished a dismal third and the Federalists gradually faded into irrelevance.

The Democratic-Republicans put together a nice run of three Virginia presidents – Jefferson, Madison and James Monroe – however, the party lacked a strong center and split four ways. Next was an alliance between John Quincy Adams and Henry Clay of the National Republican Party, which only won a single election in 1824 that required the House to settle. When Andrew Jackson defeated Clay in 1832, the party was absorbed into the Whigs … a diverse group of anti-Jackson politicos.

Then the Whig Party fell apart in the 1850s over the issue of the expansion of slavery in the new territories. In fact, after the 1854 election, the largest party in the House of Representatives was the Opposition Party, with 100 members, followed by 83 Democrats and 51 American Party members (the Know Nothings).

These parties never seem to last long (thankfully).

Next it was the New Republican Party’s turn (the Party of Lincoln) until another major kerfuffle occurred in 1912 when Teddy Roosevelt and President William Howard Taft managed to divide the Republican Party enough to let Democrat Woodrow Wilson win the White House … until he had a stroke and his wife took over.

A century later, we appear to be in another political schism, with a socialist, Senator Bernie Sanders, on the Democrat Party side and on the other, Donald “The Wall” Trump, who claims to have part of the Republican Party supporting him. It is not clear which part.

Only one thing seems certain. Thanks to President Washington, we were warned!

P.S. As history teaches … this too shall pass.

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].

Washington Recognized the Chaos of Autonomous States

The bronze sculpture George Washington at Valley Forge by Henry Merwin Shrady, modeled in 1905, cast circa 1906, sold for $54,970 at an April 2007 Heritage auction.

By Jim O’Neal

It had been a long war and George Washington was both tired and relieved to be returning to his plantation in Virginia for a well-deserved retirement. Mount Vernon was badly in need of his full-time attention and his finances were frayed.

However, he was apprehensive about a central government that consisted of a chaotic, ramshackle Congress considered by GW to be “wretchedly managed.” The legislature was a one-vote, one-state body that required a quorum of nine states to operate and a unanimous vote for major laws. This was no “United States,” but a loosely governed confederation of 13 states that were largely autonomous.

It seemed clear that the Articles of Confederation were impotent and in need of major revisions. However, it would probably require a crisis to force the changes and GW could sense that others would be looking to him (once again!) to provide the leadership needed, retirement or not.

He was right on both counts.

The crisis came when thousands of farmers in rural Massachusetts rebelled against tax increases on land the state had imposed to help pay off heavy debts. The farmers, many of whom had lost their land to foreclosure, swamped courthouses and threatened judges using their pitchforks.

They were led by Daniel Shays (hence “Shays’ Rebellion”), an ex-militia captain, and they finally marched on the Springfield arsenal intent on seizing muskets and powder. This anarchy was met by the Massachusetts militia, who fired point-blank into the crowd, and then by General Benjamin Lincoln, who arrived the next day with 4,000 soldiers to quell the rebels.

Washington was mortified by these events, since he feared disgrace from the Europeans who were still skeptical of American self-rule. More importantly, it galvanized him to join James Madison, James Monroe and Edmund Randolph to strengthen the Articles of Confederation they had fought so hard for.

Eventually, an executive branch was established and in February 1789, all 69 presidential electors chose GW unanimously to be the first president of the United States. In March, the new U.S. Constitution officially took effect and, in April, Congress formally sent word to Washington that he had won the presidency.

He borrowed money to pay off his debts and travel to New York again, this time to be inaugurated. After a second four-year term, he was finally able to resume his retirement. This time, it only lasted two years since he died on Dec. 14, 1799.

President Jimmy Carter bestowed the rank of “six-star general” and “General of the Armies of Congress” in the hope that Washington would be the highest-ranking military person of all time. Irrespective of future grade inflation, I’m betting this rank will not be surpassed.

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].