Robert Livingston – The Intelligent Collector Magazine

Are we capable of dealing with the daunting tasks that face us? Of course we are!

A 1776 broadside printing of the Declaration of Independence, written by Thomas Jefferson, sold for $514,000 at an April 2016 Heritage auction.

By Jim O’Neal

Two U.S. presidents have been elected by the House of Representatives. John Quincy Adams became the sixth president (1825) when his chief opponent, Andrew Jackson, failed to win a majority of the electoral votes in the 1824 election. The House held a special election to decide the winner. Supposedly, a “corrupt bargain” between Adams and House Speaker Henry Clay vaulted Clay into the Secretary of State position.

John C. Calhoun easily won the vice-presidential vote and he served four years under JQA. When Jackson bounced back and won in 1828, Calhoun continued as vice president for three more years. Then he resigned and made a run for the nomination in a new party: the Nullifiers … the second third party to form (the Anti-Masons were the first third party).

Earlier, in 1801, Thomas Jefferson had been elected by the House after he tied with Aaron Burr in the general election. However, it took 36 votes in the House to break the tie. Alexander Hamilton finally persuaded the electors from New York to vote for Jefferson since he was “the lesser of two evils.” Two years later, Burr exacted his revenge by killing Hamilton in a duel.

Thomas Jefferson, author of the Declaration of Independence, was Adams’ vice president for four years and then served two terms as president. He had hoped that the young nation would expand across North America, becoming a great agrarian society. Instead, great cities evolved out of necessity to accommodate the millions of immigrants fleeing to the new republic with its fabled “streets paved with gold.” In 1800, Jefferson famously wrote: “When great evils happen, I am in the habit of looking out for what good may arise from them as consolations to us. … The yellow fever will discourage the growth of great cities in our nation; and I view great cities as pestilential to the morals, the health and the liberties of man.” In Jefferson’s time, the epidemics that repeatedly swept through large cities were especially lethal.

One poignant example occurred in the summer of 1793 when a massive epidemic of yellow fever hit Philadelphia, the largest city in America and temporary capital of the United States. It was caused by the mosquitoes that flourished in the muddy swamps in the area. Yellow fever is an acute, infectious viral disease transmitted by the bite of an infected female.

This episode was responsible for 5,000 deaths, or 10% of the population. An even bigger disaster was averted when President George Washington moved the federal government and nearly 40% of the inhabitants followed. Another mitigating factor helped when a savvy group of doctors imposed a quarantine on all ships and refugees from Philadelphia. Special guards were posted to the wharfs to ensure compliance and citizens were warned not to let any strangers into their homes.

When yellow fever returned to NYC in 1795, they were better prepared with a health department. But in 1798, yellow fever killed 2,086 people (one in 30), or the equivalent of 289,000 in today’s terms. The battle continued during the entire 19th century with major outbreaks in Baltimore, Boston, New Orleans and other southern cities. Eventually, a vaccine was developed.

Thomas Jefferson was eager to obtain what would become part of the Louisiana Purchase when Spain ceded much of North America to France. He dispatched James Monroe and Robert Livingston to France with an offer to buy 40,000 square miles for $10 million. The offer was refused, but Napoleon subsequently made an astonishing counteroffer … 827,987 square miles for $15 million! The offer was quickly accepted since it provided significant benefits. First, safety for shipping on the Mississippi River … a doubling of the size of the entire United States and, mostly, acquisition of the largest, most fertile track of land on Earth. It was enough land to entice migration from the East all the way to the Pacific Ocean. With this vast new area, there would be no need to congest into cities.

However, industrial America developed rapidly as a nation, but cities grew even faster. Masses of immigrants poured into America and a vast population shifted from the country to the city. Between 1860 and 1900, the rural population had doubled, but the number of city-dwellers quadrupled! The city became the supreme achievement of modern industry, the center of civilization. It spread out, built tall skyscrapers, mechanized factories and provided all the goods and services needed for workers.

On the other side of the ledger were the evils: ghettos for the poor, suburbs for the middle-class, exclusive neighborhoods for the wealthy, and ethnic neighborhoods for the immigrants. The city offered hope and opportunity, but it also brought despair. Overwhelming social problems, diseases, poverty, crime and strife between businesses and exploited workers. So we’re left with a few problems to solve:

Rising oceans, melting polar caps, tornadic storms, raging forest fires
Partially filled office buildings and empty, closed-down malls
AI and robots replacing undereducated workers
Rising rates of inequality
Systemic racism
More complex viral diseases as we get deeper into dark spooky places
Telemedicine in place of doctors
Remote learning

Are we capable of dealing with these daunting tasks? Just think about poor George Washington who had to flee when every tenth person was dying. Of course we are, but if we give up in despair, someone (probably China) will assume the leadership role and, in the process, set the world’s agenda. Leaders lead … others follow.

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].

Does America still have ‘the right stuff’ to continue this remarkable story?

This 1903 Louisiana Purchase Gold Dollar, Jefferson Design, minted to commemorate the centennial of the Louisiana Purchase, realized $37,600 at an April 2017 Heritage auction.

By Jim O’Neal

The 19th century in the United States was by any standard an unusually remarkable period. In 1800, John Adams was still president, but had lost his bid for re-election to Vice President Thomas Jefferson, the man behind the words in our precious Bill of Rights. Alexander Hamilton had used his personal New York influence to break a tie with Aaron Burr, since Jefferson was considered the least disliked of the two political enemies. (Burr would kill Hamilton in a duel in 1803 by cleverly escalating a disagreement into a matter of honor.)

There were 16 states in 1800 (Ohio would join the Union as no. 17) and the nation’s population had grown to 5.3 million. Within weeks of becoming president, Jefferson learned that Spain had receded a large portion of its North American territory to France. Napoleon now owned 530 million acres, more than what the United States controlled. Fearful that losing control of New Orleans to our new French neighbor would lead to losing control of the strategically important Mississippi River, he developed a plan without including Congress.

He dispatched Robert Livingston and James Monroe to buy greater New Orleans for $10 million. They were pleasantly surprised when the French offered to sell 100 percent of their North American territories for $15 million cash … less several million in pending claims. Concerned that the French would change their offer before they could get formal approval, an agreement in principle was agreed to (later formally approved by Congress after James Madison’s assurance of its constitutionality.)

What a prize! 828,000 square miles for 3 cents an acre, virtually doubling the size of the United States and gaining control of the mighty Mississippi and shipping into the Gulf of Mexico. With this uncertainty removed, cotton production now expanded rapidly south and soon represented over 50 percent of total exports. With the aid of the cotton gin and slave labor, the United States now controlled 70 percent of the world’s production. Ominously, seeds of a great civil war were planted with each cotton plant.

For millions of people overseas, conquest or riches were not their primary ambition. Escaping the clutches of famine trumped all other hardships of life. 1842 was the first year in America’s history that more than 100,000 immigrants arrived in a single year. Five years later, the number from Ireland alone exceeded this, with Irish coming to America to escape the scourge of the Great Famine. In the 1840s and ’50s, 20 percent of the entire population of Ireland crossed the Atlantic in search of a better life. In sharp contrast to the Pilgrims on the Mayflower – who were on a financial venture supplied with rations – the Catholic Irish left in rags to avoid starvation in a mainly Protestant nation.

Concurrently, another wave from the European mainland was fleeing revolution and counterrevolution. In Germany, half-a-million left in a three-year period (1852-55) as a spirit of revolt captured the European continent. “We are sleeping on a volcano,” warned Alexis de Tocqueville. Meanwhile, two German thinkers (Karl Marx and Friedrich Engels) penned their intellectual nonsense, The Communist Manifesto, from the safety and luxury of London.

In the United States, just before the impending boomlet of immigration in 1846, total railroad mileage was a meager 5,000 miles. Ten years later, it quintupled to 25,000 as the influx of labor to lay iron rails was a perfect match for $400 million in capital. As famine and revolution were destroying Europe, their foreign transplants were busy transforming their new homeland. Also, the transition of coal to steam to steamboats scampering around the newly dug connecting canals would inspire new communications like the telegraph and Pony Express. While the country had been busy absorbing the wave of immigrants, it had also been in the throes of a decades-long internal migration west.

Thomas Jefferson had predicted it would be 1,000 years before the frontier reached the Pacific Ocean. Only 23 years after his death in 1826, gold was discovered in California and the fever to get rich started a westward movement that expanded globally. Once under way, the richness of the soil and massive new resources of rivers, forests, fish and bison would expand the migration to include farmers and their families. Horace Greeley shouted, “Go West, young man” and they did.

With room to grow and prosper, by 1900 the population would expand by a factor of 15 times to 76 million. They resided in 45 states after the Utah territories joined the Union in 1896. Fulfilling the vision of Manifest Destiny (from sea to sea), the rural population of 95 percent evolved as urbanization grew to 40 percent as industrialization and worker immigrants staffed the factories and cities. A short war with Mexico added California, Arizona and New Mexico, and President Polk’s annexation of Texas in 1845 filled in the contiguous states.

However, it was the railroads that created the permanence. With 30,000 miles of track in 1860, America already surpassed every other nation in the world. The continual growth was phenomenal: 1870 (53k), 1880 (93k), 1890 (160k) and by 1900 almost 200,000 … a six-fold increase in a mere 40-year period. Yes, there were problems: Illinois had 11 time zones and Wisconsin 38, but this was harmonized by 1883. Most importantly, they connected virtually every city and town in America and employed 1 million people!

Throw in a few extras like electricity, oil wells, steel mills and voila! The greatest nation ever built from scratch. Today, we have 6 percent of the people on 6 percent of the land and 30 percent of the world’s economic activity … and we are celebrating the 50-year anniversary of putting a man on the moon.

Do we still have “the right stuff” to continue this remarkable story? I say definitely, if we demand that our leaders remember how we got here.

How to explain why Americans remain so divided?

An oil-on-canvas portrait of George Washington by Philadelphia artist Robert Street (1796-1865) sold for $41,250 at a May 2019 Heritage auction.

By Jim O’Neal

The date was April 30, 1789, and the highly respected commander of the Continental Army during the Revolutionary War was ready to take the oath as the first president of the United States. The election had taken place much earlier in January, but electoral votes had not been counted until April 5.

General George Washington, who also had served as the presiding officer at the Continental Convention of 1787, was unanimously elected to the highest office in the new nation. He had to travel from his home in Virginia to New York City for the formal inauguration.

Robert Livingston, chancellor of New York, administered the presidential oath of office at Federal Hall across from the New York Stock Exchange. This site was home to the first Congress, the Supreme Court and executive offices. President Washington then retired to the Senate Chamber where he delivered the first inaugural address to a joint session of Congress. Observers commented he was mildly embarrassed and noticed an almost imperceptible tremble; possibly due to the significant historic relevance of the occasion.

Two blocks away at 75 Wall Street now stands a 42-story modern structure of marble, glass and steel. This luxurious condominium was converted from office space in 2008. It sits at the water’s edge of the Hudson River, atop an old slave market, where people were bought and sold for over 50 years (1711-62).

For Dutch and Spanish slave-traders, who controlled the transatlantic trade at the time, there were far superior markets for the sale of slaves. For one, the sugar plantations in both Spanish America and Portuguese Brazil required hundreds of thousands of slaves.

Given the insatiable European demand for sugar, it made little sense for slave-traders to undertake the additional time to travel up the North American coast to service what was considered a small speculative market. A slave ship could make a round trip between West Africa and Brazil in the same time it would take just to reach Virginia one-way. Compounding the cost were the death rates a longer journey would impose on their human cargo. This was a thriving business and decisions were made based on profitability.

Another factor was that England’s American Colonies were not willing to pay a premium since there was an adequate supply of Europeans willing to serve as indentured servants. As a result, the transatlantic perimeter of the booming slave market essentially ended at the sugar-growing islands of the Caribbean.

In 1788, the year before Washington’s inauguration, the founders recognized that they would have to include language protecting slavery in order to get the necessary state votes to gain approval of the proposed U.S. Constitution. Perhaps James Madison – “The Father of the Constitution” – was the one who accomplished this without using either the words “slaves” or “slavery” (they do not appear until later with the 13th and 15th Amendments). Instead, the reference was to a person “held to service” or “bound to service.”

In a compromise, the Constitution ordered Congress to pass a regulation to abolish it by 1800. A special committee extended the deadline to 1808 to allow a gradual 20-year phase out. They assumed (wrongfully) that slavery would become uneconomic and just naturally die out. In fact, it continued to grow. The 1790 census reported a U.S. population of 4 million, including 700,000 slaves.

Then, in 1793, Eli Whitney invented the cotton gin, which fueled a massive increase in cotton production. Slave plantations were America’s first big business, not the railroad, as some believe. Ten of the first 12 presidents were slaveholders, and two of the earliest Chief Justices.

The slave trade was one of Great Britain’s most profitable businesses. From 1791 to 1800, British ships made 1,300 trips across the Atlantic with 400,000 slaves. And then from 1801 to 1807 another 266,000. During the whole of the 18th century, the slave trade accounted for 6 million Africans. Britain was the worst transgressor, responsible for 2.5 million of the total.

In 1807, the U.S. Congress passed the slave act to “prohibit the transportation of slaves into any port … from any foreign place” (starting in 1808, as directed by the Constitution). However, it did not ban the trading of slaves within the United States. With an estimated 4 million slaves in the country (plus children born into slavery), this resulted in a self-sustaining model that did not require importation, which was now abolished.

The nation continued to evolve with a Southern agrarian society heavily dependent on slave labor while the North pursued industrialization. The constant debates over abolition simply shifted to how new territories and states would enter the Union … as free or slavers. This delicate balance was not sustainable and virtually everyone knew how it might end. It was almost inevitable that no permanent agreement was possible.

We know the implications of the great Civil War that was required to permanently stop slavery in the United States and the difficulties during the post-war reconstruction era. We can wonder about the progress in civil rights during the 20th century. But how do we explain why we are still so divided racially?

I was eager to hear the recent presidential debates, expecting discussions about climate change, health care, immigration, inequality and impeachment. Instead, issues like reparations, asylum, abortion and even forced busing in the 1970s took center stage. Had I dialed 2020 and ended up in 1820 in a Twilight Zone episode?

Maybe Pogo was right after all: “We have met the enemy and he is us.”