History littered with leaders who underestimated the power of the people

A Silver Medal for Gallantry, at the Battle of Bunker Hill, from King George III to Captain Peter Ewing of the Royal Marines, dated June 17, 1775, realized $32,000 at a June 2012 Heritage auction.

By Jim O’Neal

It is fascinating to watch the mass demonstrations in Hong Kong and speculate how the central government in Beijing will quell the unrest. It could end up badly if President Xi Jinping decides to ensure there is no uncertainty over the ultimate authority that still rests comfortably on the mainland … and resorts to force.

Hong Kong (Island) became a colony of the British Empire after the First Opium War (1839-42), then expanded to include the Kowloon Peninsula after the Second Opium War in 1860. Finally, Britain obtained a 99-year lease in 1898. After the lease expired in 1997, Hong Kong has exploded into one of the major financial centers of the world. It is home to many of the world’s ultra-rich and has managed to squeeze 7 million to 8 million residents into its 317 skyscrapers, the most of any city in the world. It has a first class, 21th century economic model that is widely admired.

The protesters’ beef is over governance, since HK has an autonomous system with executive, legislative and judicial powers devolved from the mainland (two systems, one country). They are resisting a proposal that would dilute the judiciary by moving criminal indictments and trials to Beijing. Small wonder since the conviction rate is almost 100 percent. If President Xi does move forward (at least now), it would be a classic mistake that many others have made. History is littered with leaders who underestimated the power of the people they govern.

Eight hundred years ago, King John of England experienced a similar revolt by English nobility against his rule. The king met with the barons and affixed the Royal Seal to a peace agreement that became known as the Magna Carta (Great Charter). The implications of the Magna Carta were quite modest with respect to what the king agreed to.

He guaranteed to respect feudal rights and privileges, to uphold the freedom of the church and maintain the nation’s laws. However, later generations have come to view it as the cornerstone of a democratic England.

King John inherited the crown after the death of his brother, Richard the Lionheart, when he was on crusade in 1199. By 1215, he was viewed as a failure after raising taxes on the nobility to compensate for losing Normandy to the French. He also frequently quarreled with Pope Innocent III and even sold church properties to replenish the royal coffers. In return, he was formally excommunicated.

But importantly, just by signing the Magna Carta, it implied that the king was obliged to follow certain laws and avoid any future claim of absolutism. Several earlier monarchs had talked about the king having some sort of “divine immunity.” Then there was also clause 39 (of 63) that stated “no freeman shall be arrested or imprisoned … or outlawed or exiled … except by the lawful judgment of his peers.” This clause has been celebrated as our own guarantee of a jury trial and habeas corpus.

In one aspect, all of this was actually moot since another civil war erupted almost immediately and both King John and the barons disregarded their commitments after the pope annulled the Magna Carta. Fortunately, King John died the following year (1216) and his 9-year-old son, Henry III, inherited the crown. Under the auspices of his guardian William Marshall, the Magna Carta was revived and eventually it formally entered English statute law.

Closer to home, it’s safe to assume that when 22-year-old King George III succeeded to the British Crown in 1760, most American Colonists considered themselves Britons and subjects of the king (but not Parliament). However, this system started to unravel after the Seven Years’ War of 1756-63 when Great Britain started imposing higher taxes on the Colonies. One glaring example was the large British garrisons established after the war; Colonists were required to pay all costs to maintain them.

This was followed by the Sugar Act of 1764 and the pervasive Stamp Act in 1765. Next was the Declaratory Act of 1776, when it became obvious that the Parliament of Great Britain was intent on extending its sovereign power into every nook and cranny of daily colonial life. Loyalty to the king was one thing, but to allow Parliament to impose new taxes at will and without any representation or discussion was quite another. It proved a bridge too far, but no one in England was sympathetic to the whinges from across the ocean.

Enter a man named Thomas Paine, who believed that arguments over equality, excessive taxes, or lack of representation or divided loyalty were wrong. He helped shift the focus to one of separation and unrestricted independence. Gaining support for his views was difficult due to slow communications in the Colonies and the subtle complications to men of little education. Newspapers were notoriously inadequate due to erratic distribution and lack of coherence.

What distinguished Paine was his remarkable ability to synthesize the issues and offer ideas that the general population could grasp. Further, he was a pamphleteer extraordinaire and authored “Common Sense,” which was perfect for the masses to understand. It was an immediate success – the equivalent of 18th century social media (which spawned the “Arab Spring” we witnessed in the Middle East). Suddenly, the momentum shifted to “Give Me Liberty or Give Me Death,” instead of untimely complaints.

Ever disdainful and out of touch, Lord Sandwich, First Lord of the Admiralty, pronounced to the House of Lords in March 1775: “Of the Colonies … they are raw, undisciplined cowardly men.” More famously, British Army officer James Grant proclaimed in the House of Commons that Americans could not fight because “they drink, they swear, they whore” and that he would “undertake to march from one end of the continent to the other with but 5,000 regular British soldiers.”

Pity King George (now 37), who had never been a soldier, had never been to America or even set foot in Scotland or Ireland. But, with absolute certainty, he believed his trust in providence and high sense of duty. Nagged by his mother – “George, be a king!” – America must be made to pay. Inevitably, war came on April 19 with the first blood at Lexington and Concord and then savagely at Bunker Hill. On June 3, General George Washington had taken command of the “American Rabble.”

Game on!

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 We Owe a Lot to Second President John Adams

An 1805 oil-on-canvas portrait of John Adams attributed to William Dunlap sold for $35,000 at a May 2017 Heritage auction.

By Jim O’Neal

John Adams had the misfortune of being squeezed into the presidency of the United States (for a single term) between George Washington and Thomas Jefferson, two of the most famous presidents of all time. As a result, Adams (1735-1826) was often overlooked as one of America’s greatest statesmen and perhaps the most learned and penetrating thinker of his time. The importance of his role in the founding of America was noted by Richard Stockton, a delegate to the Continental Congress: “The man to whom the country is most indebted for the great measure of independence. … I call him the Atlas of American Independence.”

On the way to that independence, his participation started as early as 1761 when he assisted James Otis in defending Boston merchants against Britain’s enforcement of the Sugar Tax. When the American Revolution ended, Adams played a key role in the peace treaty that formally ended the war in 1783. In between those two bookends, he wrote many of the most significant essays and treatises, led the radical movement in Boston, and articulated the principles at the Continental Congress.

Following the infamous Stamp Act in 1765, he attacked it with a vengeance and wrote A Dissertation on the Canon and Feudal Law, asserting it deprived the colonists of two basic rights: taxation by consent and a jury trial by peers – both guaranteed to all Englishmen by the Magna Carta. Within a brief 10 years, he was acknowledged as one of America’s best constitutional scholars. When Parliament passed the Coercive Acts in 1774, Adams drafted the principal clause of the Declaration of Rights and Grievances; no man worked harder in the movement for independence and the effort to constitutionalize the powers of self-government.

After the Battles of Lexington and Concord, Adams argued for the colonies to declare independence and in 1776, Congress passed a resolution recommending the colonies draft new constitutions and form new governments. Adams wrote a draft blueprint, Thoughts on Government, and four states used it to shape new constitutions. In summer 1776, Congress considered arguments for a formal independence and John Adams made a four-hour speech that forcefully persuaded the assembly to vote in favor. Thomas Jefferson later recalled that “it moved us from our seats … He was our colossus on the floor.”

Three years later, Adams drafted the Massachusetts Constitution, which was copied by other states and guided the framers of the Federal Constitution of 1787.

He faithfully served two full terms as vice president for George Washington at a time when the office had only two primary duties: preside over the Senate and break any tie votes, and count the ballots for presidential elections. Many routinely considered the office to be part of Congress as opposed to the executive branch. He served one term as president and then lost the 1800 election to his vice president, Thomas Jefferson, as the party system (and Alexander Hamilton) conspired against his re-election. Bitter and disgruntled, he left Washington, D.C., before Jefferson was inaugurated and returned to his home in Massachusetts. His wife Abigail had departed earlier as their son Charles died in November from the effects of chronic alcoholism.

Their eldest son, John Quincy Adams, served as the sixth president (for a single term) after a contentious election, and they both gradually sunk into relative obscurity. This changed dramatically in 2001 when historian David McCullough published a wonderful biography that reintroduced John and Abigail Adams to a generation that vaguely knew he had died on the same day as Thomas Jefferson, July 4, 1826 – the 50th anniversary of the signing of the Declaration of Independence. In typical McCullough fashion, it was a bestseller and led to an epic TV mini-series that snagged four Golden Globes and a record 13 Emmys in 2008.

Television at its very best!

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].

Rights Granted to Barons in Medieval England are Bedrocks of Modern Society

charter-of-liberties-cardinal-langton-archbishop-of-canterbury
A painting by William Martin (1753-1836) shows Cardinal Langton, Archbishop of Canterbury, producing to the barons the Charter of Liberties, issued in 1100. It’s considered a landmark document in English history and forerunner of the Magna Carta.

By Jim O’Neal

During the heated debates between our Founding Fathers while formulating the Constitution and Bill of Rights, many invoked the principles of the Magna Carta to bolster their arguments. For almost 600 years, the Great Charter had stood as a beacon whenever men discussed their inherent rights.

The truth is somewhat more complicated.

On June 15, 1215, King John of England signed a charter at Runnymede, a meadow beside the Thames River near Windsor fortress. The Archbishop of Canterbury had proposed the charter as a means to make peace between the king and a group of rebel barons. The document – which eventually became the Magna Carta – promised access to swift justice, no illegal imprisonment and limitations on feudal payments.

When John was enthroned as king in 1199, England was a feudal society, a land-based hierarchy where the king owned all the land. The tenants-in-chief (i.e. barons) received land from the king in exchange for loyalty and military service. They, in turn, leased the land to their own retainers, who leased to peasants. However, English monarchs had been levying ever-increasing higher taxes and financial burdens on the barons.

Starting with Henry I (1100-1135), the Crown established a series of Royal Courts that also raised revenue through fines and taxes. Discontent intensified under King John, who had lost a series of expensive campaigns against the French from 1200-1204 and had also lost the land in Normandy, which put the squeeze on the entire system. In addition to being inept at war, King John broke his commitments to the barons and both sides then disavowed any promises made.

One significant irony was that the Magna Carta originally only included the king and the barons. Ordinary citizens were totally ignored.

A new Magna Carta was issued in 1216 by Henry III and revised again in 1226 to raise taxes once again. Finally, in 1297, Edward I agreed to rights that evolved into English statute law, with a broad array of rights granted to all citizens.

The Magna Carta has acquired almost mythical status as the constitutional bedrock of citizen rights. It contributed to the development of parliament from the 13th century and was used by 17th century rebels to argue against the divine right of kings. Several American colonies’ charters contained clauses modeled on it, while the design of the Massachusetts seal chosen at the start of the Revolutionary War depicts a militiaman with sword in one hand and the Magna Carta in the other.

Americans believed the Crown had breached the fundamental law enjoyed by all English citizens, which led to the U.S. Constitution enacted in 1789 and the Bill of Rights adopted two years later. We are fortunate to live in a country governed by the rule of law and limitations on the arbitrary power of a government against its citizens.

Much blood has been spilled by many in defense of these beliefs.

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].