America Remains a Beacon of Democracy for the World

Revolutionary War newspapers, like this July 31, 1776, edition of The Massachusetts Sun, often included reports on speeches by figures such as John Hancock and Patrick Henry.

By Jim O’Neal

During the winter of 1774-75, George Washington helped militia groups in Virginia form independent companies for a possible war with Great Britain. This included choosing officers and arming, equipping and training for a worst-case event. They naturally started clamoring for Washington as their commander and he finally agreed to accept the field command for four independent companies in Virginia counties.

In January, The Virginia Gazette thanked the aspiring hero in a quatrain: “In spite of Gage’s flaming sword/and Carleton’s Canadian troop/Brave Washington shall give the word/and we’ll make them howl and whoop.” The forces for war were gaining momentum.

In March 1775, Washington was summoned to Richmond to attend the Second Virginia Convention. This meeting ratified the resolutions of the Continental Congress and applauded the work of seven delegates from Virginia. Patrick Henry argued that British troops intended to enslave the Colonies and set pulses racing with his flaming response: “Is life so dear or peace so sweet as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take, but as for me, give me liberty or give me death!”

Buoyed by these words, the convention agreed that Virginia should be placed in “a posture of defense.”

In April, it momentarily seemed as if an early chapter of the Revolutionary War would be written in Virginia when the British (Lord Dunmore) had all the gunpowder stored at a Williamsburg arsenal removed and placed in a British man-of-war under the pretext of worrying about a slave uprising. When enraged patriots threatened to invade the governor’s mansion, Washington counseled caution and advised the companies under his command not to march on Williamsburg. A young 24-year-old James Madison condemned Washington for having “discovered a pusillanimity little comporting with their professions or the name of Virginia.”

As a military man, Washington knew how indomitable the British military machine was and how quixotic a full-scale revolution would be. As he later said of America’s chances in the spring of 1775, “It is known that the expense in comparison with our circumstances as colonists must be enormous, the struggle protracted, dubious and severe. The resources of Britain were, in a manner, inexhaustible, that her fleets cover the ocean and that her troops had harvested laurels in every quarter of the globe … money the nerve of war, was wanting.”

But these colonists had something much more precious, as Washington would later say: “The unconquerable resolution of our citizens, the conscious rectitude of our cause and a confident trust that we should not be forsaken by heaven.”

The role of heaven is unknowable, but the importance of leaders, especially George Washington, is still a remarkable miracle that we should never forget.

We are still a beacon of democracy for the world to 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 chairman and CEO of PepsiCo Restaurants International [KFC Pizza Hut and Taco Bell].

Bitter Enemies United Forever on Currency

This 1861 Confederate States of America $1000 Montgomery Note, featuring John Calhoun and Andrew Jackson, sold for $76,375 at an October 2015 Heritage auction.

By Jim O’Neal

John Caldwell Calhoun served his full four years as vice president under John Quincy Adams, but the year was now 1828 and he needed to make a decision about his political future.

He previously had been a member of the House of Representatives (1811-17) and Secretary of War (1817-25). (He was later Secretary of State, and a U.S. Senator.)

He finally decided to run for the vice presidency again. But, in a twist, he decided to switch horses and run with Andrew Jackson rather than JQA. It seemed like a prudent choice at the time, and he and Jackson easily won the 1828 election. Then they started trying to work together.

They differed on so many fundamental issues, including states’ rights and nullification, that a schism seemed inevitable. Then, to make tensions even worse, his wife Floride Bonneau started meddling in White House politics … and Jackson’s famous temper was riled up. He even threatened to just grab Calhoun and hang him (another duel would have apparently been unseemly).

The end was much less dramatic, as Jackson simply picked Martin Van Buren to be his running mate in the 1832 presidential election. When they won, Calhoun resigned.

Calhoun would remain the only vice president to resign until Spiro Agnew joined the club.

On March 9, 1861, the Confederate States of America issued a $1,000 banknote depicting both Calhoun and Jackson. So the two bitter enemies remain joined for eternity.

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].

Adamses First Presidential Couple to Mark their Golden Anniversary

Louisa Adams, shown in this oil portrait by Lawrence Williams, was our only First Lady born outside the United States.

By Jim O’Neal

Some presidential tidbits:

Three sets of presidents defeated each other:

► John Quincy Adams defeated Andrew Jackson in 1824; Jackson defeated Adams in 1828.

► Martin Van Buren defeated William H. Harrison in 1836; Harrison defeated Van Buren in 1840.

► Benjamin Harrison defeated Grover Cleveland in 1888; Cleveland defeated Harrison in 1892.

So much for the power of incumbency.

John Quincy Adams and wife Louisa were the first presidential couple to be married 50-plus years. She remains the only First Lady born outside the United States (London) and the first to write an autobiography, “Adventures of a Nobody.” When she died in 1852, both houses of Congress adjourned in mourning (a first for a woman).

While in the Senate, John was “Professor of Logic” at Brown University and professor of rhetoric and oratory at Harvard.

Herbert Clark Hoover was the last president whose term of office ended on March 4 (1933).

He married Lou Henry Hoover (the first woman to get a degree in geology at Stanford), and when they were in the White House, they conversed in Chinese whenever they wanted privacy.

Our 10th president, John Tyler, only served 31 days as VP (a record) before becoming president after William Henry Harrison’s death.

His wife Letitia was the first to die while in the White House. When John re-married, several of his children were older than second wife Julia.

Tyler’s death was the only one not officially recognized in Washington, D.C., because of his allegiance to the Confederacy. His coffin was draped with a Confederate flag.

Our sixth president, James Monroe, was the first senator elected president. His VP for a full eight years, Daniel D. Tompkins (the “D” stood for nothing), was an alcoholic who several times presided over the Senate while drunk. He died 99 days after leaving office (a post vice-presidency record).

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].

President Coolidge’s Inaction Opened White House Door for Herbert Hoover

A photograph of President Herbert Hoover and his Cabinet, signed, circa 1929, sold for $2,151 at an April 2012 Heritage auction.

By Jim O’Neal

The first president born west of the Mississippi River was Herbert Clark Hoover in 1874. He was born in West Branch, Iowa, about 30 miles from the mighty river. He had a remarkable life, although there is little evidence of true joy other than the rewards from devoting all of his energy to work and public service … always striving for achievement.

It’s curious that he ended up the Cabinet of President Calvin Coolidge. “Silent Cal” was another taciturn man, “weaned on a pickle” and a work ethic that resulted in five-hour workdays, supplemented by naps in the White House. He did not like many people, especially Hoover, his Secretary of Commerce, complaining, “That man gave me unsolicited advice for six years, all of it bad.” Coolidge jeeringly called Hoover “Wonder Boy,” since Hoover’s reputation for saving lives in World War I had earned him an international title as “The Great Humanitarian.”

It was the Roaring Twenties and times were rosy.

By 1927, America was the most comfortable place in the world. Surrounded by sleek new appliances – radios, refrigerators, telephones, electric fans – that were all within reach of the common man. Eighty-two percent of all things produced were made in America, 80 percent of movies and 85 percent of all cars. America had 50 percent of the world’s gold and the stock market increased by one-third in one year.

But suddenly, there were rain clouds in the sky and for months, it rained steadily across the country. Southern Illinois received two feet of rain in three months and places in Arkansas got over three feet. People had never seen anything like it.

Rain-swollen rivers overran their banks; the San Jacinto in California; the Klamath and Willamette rivers in Oregon; the Snake, Payette and Boise in Idaho; the Neosho in Kansas; Ouachita in Arkansas; the Tennessee and Cumberland in the South; and the Connecticut River in New England.

Then on Good Friday, April 15, 1927, a mighty storm system pounded the middle third of the nation with an unprecedented rain of intensity and duration. From Western Montana to West Virginia and from Canada to the Gulf of Mexico, rain fell as one might envision what Noah experienced.

Nearly all of this water raced into swollen creeks and rivers and headed straight to the great central artery of the continent – the Mississippi River. The Mississippi and its tributaries drain 40 percent of America, almost 10 million square miles across 31 states. Never in recorded history had the entirety of it been this strained. People standing on the banks watched the carnage floating by. Houses, trees, dead cows, barn roofs. At St. Louis, the volume of passing water was an astonishing two million cubic feet per second.

On April 16, the first levee gave way and 1,300 feet of earthen bank ruptured and a volume of water equal to Niagara Falls passed through the chasm. By May 1, the flood stretched 500 miles from Illinois to New Orleans. The statistics of the Great Flood were staggering. Sixteen million acres flooded … 204,000 buildings lost … 637,000 people homeless, along with 50,000 cattle, 25,000 horses, 145,000 pigs and 1.3 million chickens.

The Mississippi Flood of 1927 was the most epic natural disaster in American history. The Mississippi was at flood stage for 153 consecutive days.

President Coolidge sent Wonder Boy to clean up the mess, rolled over and went back to sleep. It would help Herbert Hoover win the 1928 presidential election, never suspecting that in 1929 the merry-go-round of good times would stop when the stock market crashed, followed by the Great Depression, which would last for 10 long years until we started gearing up for war.

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].

How Can Catastrophe Fall From a Cloudless Sky?

British economist Norman Angell’s 1910 book The Great Illusion, which argued that war between industrial countries was futile, inspired the 1937 French film La Grande Illusion. A theater poster for the movie sold for $8,625 at a July 2006 auction.

“Everybody has a plan, until they get punched in the face.” – Mike Tyson

By Jim O’Neal

Throughout history, armies have always made plans. Alexander the Great had one to invade the Persian Empire to capture or kill Emperor Darius III. Phillip II of Spain had a plan to defeat England in 1588 by sailing an armada up the Channel, load his troops and land in Kent. The Duke of Marlborough planned to save Holland in 1704 by luring the French army down the Rhine and defeat it away from their home base.

Another famous plan by Hannibal in the Second Punic War was evading Rome’s navy, crossing the Alps and confronting the Legions in their homeland. Even the United States had a plan in 1861 to strangle the South by blockading the Mississippi River and all southern ports (the Anaconda Plan).

All these plans were made in the midst of war or when war was imminent. By 1870, war planning evolved to abstract contingencies for use only if a war became a reality. It was a futile effort of the paranoid, since war can become a reality if an overwhelming force becomes available for use by some ambitious leader (O’Neal’s Rule).

The Second World War – when it inevitably started in 1939 – was simply a continuation of the First World War. It was tragic and unnecessary conflict. Unnecessary because the train of events could have been interrupted at any point during the five weeks that preceded the first clash of arms. Tragic because the war ended the lives of 16 million people, tortured the lives of millions more, and destroyed the benevolent and optimistic culture of the European continent.

The puzzlement, of course, was how such a catastrophe came out of a cloudless sky in 1914 to a population raised to believe that war could never trouble their continent again. In the summer of that year, Europe enjoyed peaceful economic prosperity, so dependent on international exchange and cooperation that the prevailing wisdom considered war an impossibility.

A bestseller in 1910, The Great Illusion was an analysis of economic interdependence. It confirmed that war would be deterred by any threat to the disruption of international credit, and both industrial and commercial society were unambiguous in agreement. Industrial output was strong. New categories of manufactured goods, chemical dyes and internal-combustion vehicles flourished as new sources of cheaply extracted materials became more widely available. Rising populations everywhere and the enormous expansion of overseas empires were followed by a second revolution in transportation – steamships overtook sailing-ship tonnage.

Banks recovered their confidence. Gold-backed capital was circulating freely and fueled Russian railways, South African gold and diamonds, South American cattle, Australian sheep, Malaysian rubber and Canadian wheat. Every sector of the United States’ enormous economy devoured European capital as fast as it became available.

Naturally, everyone had strategic alliances (just in case), armies built up to offset naval imbalances (just in case), and contingency plans. However, diplomatic communications had not kept pace, as their need was a quaint relic of the past. There was no need since there was no trouble. Everybody was too busy getting rich.

War? Not a chance (plus, everyone had a “plan”). Maybe boxer Mike Tyson is smarter than we give him credit for.

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].

‘We Can Never Know Enough About the American Revolution’

The 1998-S Crispus Attucks $1 was struck to commemorate the 275th anniversary of the birth of Attucks and to honor the nation’s Black Patriots.

By Jim O’Neal

A friend, Oscar Robertson, NBA Hall of Fame player, gained notoriety in 1955 by leading Crispus Attucks High School to the Indiana state championship, becoming the first all-black school in the nation to win a state title. In 1956, Oscar and his teammates won the state championship again, and this time they became the first Indiana high school to complete a season undefeated.

Crispus Attucks was the first person killed in the Boston Massacre (March 5, 1770) and many consider the former slave the first casualty of the American Revolution. In the 1850s, he became a martyr for the abolitionist movement. His probable mixed-race heritage – African and American Indian – allowed both African Americans and Native Americans to leverage his fame in their struggles for justice.

Despite the many eyewitness accounts, scholarly research and dozens of highly acclaimed books, this period is filled with alternate versions and is a continuing source of debate and uncertainty.

A common denominator in many of the high-profile events of the era is the city of Boston, with the Stamp Act of 1765 being a convenient place to start. This was an egregious act of the British Parliament putting a tax on all printed matter – newspapers, books, playing cards and legal documents. It aroused a storm of protest in all the colonies, with Boston’s reaction particularly violent. A Stamp Act administrator was burned in effigy and a mob ransacked the governor’s mansion.

Parliament repealed the Stamp Act, but insisted they maintained the right to pass laws regulating all trade and issuing new taxes at will. This caused protests that were even more violent and into this highly volatile situation, Britain landed 4,000 troops in Boston, strictly “in anticipation of a crisis.”

By 1770, Boston was in an economic decline and the population of 15,000 was smaller than 30 years earlier in 1740. There was continual competition for scarce resources and tensions between British troops and citizens continued to increase. Finally, an argument over payment for a haircut escalated into an angry mob that challenged troops stationed at the Customs House.

The people taunted the soldiers with “Fire! Fire! Fire! We dare you to fire!” At some point, an order was given and they shot into the crowd. Four people were killed and several others wounded. The next day, British Captain Thomas Preston and a small group of soldiers were arrested and taken to Queen Street jail to await trial. Future President John Adams and Josiah Quincy Jr. agreed to be their lawyers. A little-known fact is that four citizens were accused of shooting into the crowd, but they were found not guilty along with all but two of the British soldiers.

Then came the famous Boston Tea Party (1773), when colonists dressed as Indians destroyed 342 chests of tea on three ships in Boston Harbor after the British Parliament levied taxes on tea and granted a monopoly to the British East India Company. All the elements were in place for a war and it lasted for seven years.

The 35 years from 1765 to 1800 are some of the most interesting times in American history and will continue to attract scholarly research and an unending parade of books. However, few have the insight of Pulitzer Prize-winning historian David McCullough, who has said, “We can never know enough about the American Revolution if we want to understand who we are, why we are the way we are, and why we’ve accomplished what we’ve been able to accomplish that no other country has.”

I agree.

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].

Jefferson Davis was a Genuine War Hero When He Arrived in the Senate

Jefferson Davis’ arrival in Washington, D.C., as a U.S. Senator from Mississippi was like a coronation.

By Jim O’Neal

Thirteen-year-old Jefferson Davis was tired of school. He returned home from Wilkinson Academy, a few miles from the family cotton plantation, put his books on a table, and told his father he would not return. Samuel Davis shrugged and told his youngest son that he would now have to work with his hands rather than his brain. At dawn the next day, he gave young Jeff a large, thin cloth bag, took him to the cotton field and put him in a long line with the family slaves picking cotton.

Three days later, he was back at Wilkinson, happily reading and taking notes with his bandaged hands.

By 16, Jefferson had mastered Latin and Greek, was well read in history and literature, and eager to study law at the University of Virginia. Instead, he spent four years at West Point, graduated in the bottom third of his class and then entered the Army. He was 20 years old and fighting in both the Black Hawk War and the Mexican-American War.

Jefferson Davis’ arrival in Washington, D.C., as a U.S. Senator from Mississippi was like a coronation. A true war hero at age 36, he was recognized by everyone and warmly greeted by all he met. After all, Jeff Davis was the first genuine war hero in the Senate in its entire 58 years!

His rise to prominence occurred as one generation of leaders died or retired – Henry Clay, John C. Calhoun, John Quincy Adams, Daniel Webster – and a younger one was set to take over, led by Stephen Douglas (39), Andrew Johnson (39), Alexander Stephens (35), Salmon P. Chase (39) and William Seward (35).

Jeff Davis began to give important speeches in the Senate and everyone sensed he had a future in politics.

The Senate proved comfortable and prestigious, providing an intimate venue to discuss and debate the great issues of the time. Yet despite all the exciting opportunities facing the young nation, the hard fact was that slavery was a pernicious issue lurking in the shadows. It was like a cancer that seemed to grow more lethal after every “compromise” designed to resolve it.

An example was the fateful Compromise of 1850, intended to resolve the four-year controversy over the status of the new territories that accrued to the U.S. after the war with Mexico. California was admitted as a free state, and Texas had slaves, but had to surrender its claim to New Mexico. Utah and New Mexico were granted popular sovereignty (self-determination) and there was a more stringent Fugitive Slave Law (destined to be revoked by the Dred Scott reversal).

Jeff Davis felt so strongly that slavery was a 200-year tradition (to be decided by individual states) and detested the 1850 Compromise so much that he resigned his Senate seat to run for governor of Mississippi, confident this would enhance his national visibility, send a strong message to the North and bolster any wavering Southerners. The strategy failed when he lost the election, leaving him with no political office.

Davis bounced back into the Senate by one vote and new President Franklin Pierce (1852) selected him to be Secretary of War, a powerful position to resist the continuous threat from the North to impose their will on the South by any means necessary. The 1854 Kansas-Nebraska Act just roiled the opposing forces and thoughts of secession were like dry kindling waiting for the proverbial spark. First was President James Buchanan (1856), a Democrat who seemed helpless or resigned to the inevitability of war.

As abolition forces gained momentum and the South grew even more resolute that they would not concede a principle that states’ rights trumped Federal aggression, it was only a question of how or what set of events would tip the nation into a civil war. The answer was in plain sight.

In the critical election year of 1860, though still hopeful of a peaceful settlement on slavery, Davis told an audience that if Republicans won the White House, the Union would have to be dissolved. “I love and venerate the Union of these states,” he said, “but I love liberty and Mississippi more.” When asked if Mississippi should secede if another state did, he roared, “I answer yes!” And if the U.S. Army tried to suppress it? Davis answered even more vehemently. “I will meet force with force!”

Republican Abraham Lincoln was elected president in 1860.

The slavery issue was simply not resolvable by anything but force. Few foresaw how much force would be needed and the enormous carnage and loss of life involved. War always seems to be much more than anticipated. The 20th century would really amp it up and the 21st century has gotten off to a rocky start, as well.

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].

Webster Certainly Belongs on the List of Our Greatest Senators

This 1853-dated bronze statue of Daniel Webster, measuring 29.75 inches, sold for $11,950 at a March 2008 auction.

By Jim O’Neal

American poet Stephen Vincent Benét (1898-1943) is perhaps best known for his book-length narrative poem “John Brown’s Body” (1928), about the Civil War abolitionist who raided the armory at Harpers Ferry in 1859. Brown and a group of 20-plus co-conspirators captured several buildings and weapons they hoped to use to start a slave uprising.

U.S. Army Lieutenant Robert E. Lee led a contingent of Marines to quell the insurgency. Brown was captured, tried for treason and hanged. Harpers Ferry was at a busy crossroads, at the confluence of the Potomac and Shenandoah rivers, and was the site of at least eight skirmishes while changing hands several times during the Civil War.

Benét also authored “The Devil and Daniel Webster” (1936), a fictional story about a farmer who sells his soul to the devil (Mr. Scratch) and then refuses to pay up even after receiving a three-year extension on the agreement. Benét has Webster defend him in court due to his prodigious real-life record as a famous lawyer, statesman and orator. There are many other films, books and stories about similar Faustian-type bargains, but the use of Daniel Webster was a brilliant choice due to his superior debating skills and outstanding oratory.

In Benét’s trial, despite overwhelming evidence, the jury finds in favor of Mr. Webster’s client.

In virtually every aspect, the real-life Daniel Webster (1782-1852) was almost a true larger-than-life character, at least in American politics and especially in the formative era between 1812 and the Civil War. He played a critical role in virtually every significant issue confronting the new United States government.

Webster had no equal as an orator, either in those turbulent times or in the 200 years since then. Whether in the Supreme Court (240-plus cases), the U.S. Senate, or out on the political stump, he was simply the finest; a golden-tounged spellbinder. He enthralled audiences three to four hours at a time, always in defense of the Union and the sacred U.S. Constitution.

He generated almost god-like respect and was universally considered to be a cinch to be president; particularly in his own mind. His weakness was aligning with the Whigs and a seemingly improvident inability to manage personal finances (and alcohol, as usual). He was also an elitist at a time when Andrew Jackson’s brand of populism was growing, much like the present. He was often referred to as “Black Dan” because of his political conniving.

He missed a perfect chance to be president by refusing to run as vice president in 1840 with William Henry Harrison, who defeated Martin Van Buren but died 31 days after his inauguration.

1841 was the first “Year of Three Presidents.” It began with the defeated Van Buren, followed by Harrison, and then Vice President John Tyler, who had himself sworn in immediately as president after a brief Constitutional crisis following Harrison’s death.

This phenomenon occurred again in 1881. After Rutherford B. Hayes finished his term, new President James A. Garfield took over. When Garfield succumbed to an assassin’s bullet in September, VP Chester A. Arthur moved into the White House … this time with little controversy.

So Daniel Webster never realized his ambition to become president, but any time there is a discussion about our greatest senators, you may be assured that Daniel Webster will be on everyone’s Top 5, along with Henry Clay and John C. Calhoun … two more who never quite got to wear the Presidential Crown. Sadly, we do not have any actual recordings of these great orators, but it is tantalizing to think of them in today’s contemporary politics and to judge them in this age of new media.

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].

Our Wishes, Passions Cannot Alter the State of Facts

“The Big Three” – Churchill, FDR and Stalin – at the Yalta Conference, Feb. 4, 1945.

By Jim O’Neal

In February 1945, with the war in Europe winding down, the time had come for President Franklin Roosevelt, British Prime Minister Winston Churchill and Soviet Premier Joseph Stalin to decide the continent’s postwar fate. They agreed to meet at the Black Sea port of Yalta to discuss the plan.

Each man arrived on Feb. 4, along with an entourage of diplomats, military officers, soldiers and personal aides. Among those attending for Great Britain were Alexander Cadogan, under-secretary for foreign affairs, and Anthony Eden, Britain’s foreign secretary. Stalin was accompanied by his minister of foreign affairs, Vyacheslav Molotov, and the Soviet ambassador to the United States. Roosevelt brought Secretary of State Edward Stettinius and Averell Harriman, U.S. ambassador to the Soviet Union.

Roosevelt, recently elected to a fourth term, also brought along daughter Anna as his personal assistant, instead of wife Eleanor.

Aside from agreeing to the unconditional surrender of Germany, their agendas could not have been more different. While Stalin was firmly committed to expanding the USSR, Roosevelt and Churchill focused on the war in the Pacific. They hoped Stalin would declare war on Japan once Germany surrendered. Unbeknownst to Churchill, Roosevelt secretly secured the Soviet dictator’s cooperation by agreeing to grant the Soviets a sphere of influence in Manchuria once Japan capitulated.

The Allied leaders also discussed dividing Germany into zones of occupation. Each of the three nations, as well as France, would control one zone. Churchill and Roosevelt also agreed that all future governments in Eastern Europe would be “friendly” to the Soviet Union. Stalin agreed to allow free elections in each of the liberated Eastern European countries.

There was also a great deal of debate over Poland, but it was all a series of empty, almost laughable promises from Stalin in return for consenting to help with the establishment of the United Nations, which Roosevelt desperately wanted to create. He sincerely believed this new organization would step in when future conflicts arose and help countries settle their disputes peacefully.

The initial reaction to the Yalta agreements was one of celebration, especially in the United States. It appeared that the Western Allies and the Soviets would continue their wartime cooperation into the postwar period. Some historians continue to debate the impact of the conference. However, the facts are crystal clear. By spring, hopes of any continued cooperation had evaporated. After Yalta, Stalin quickly reneged on his promises concerning Eastern Europe, especially the agreement to allow free elections in countries liberated from Nazi control.

The USSR created an Iron Curtain and installed governments dominated by the Soviet Union. The one-time pseudo Allies found themselves on a more treacherous and dangerous path to another more ideologically driven one – the aptly named Cold War. Was FDR too tired and sick? He died two months after Yalta on April 12, 1945, at age 63. Was Churchill out of the loop or drinking heavily (or both)?

Seventy-plus years later, we are still consumed with Russian aggression in Crimea, Ukraine, Syria and the Baltics.

“Facts are stubborn things, and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence,” said lawyer and future president John Adams in 1770, while defending British soldiers in the Boston Massacre trial.

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].

Maybe the Island of Niue Can Teach the World a Few Things

The first European to sight Niue was Captain James Cook in 1774.

By Jim O’Neal

After recently analyzing foreign travel statistics, I saw that 157 people traveled from the United States to the South Pacific island of Niue in 2015 (latest census data).

This seemed high to me as I recall one of Captain James Cook’s logs had indicated he tried three times to visit Niue in 1774, but eventually gave up. The inhabitants of this small island were painted as “savages” (hence Savage Island) and had a red substance on their teeth that resembled blood. It was later determined that it was from eating hulahula, an innocuous red banana.

Sensing that things had changed in the 240-plus intervening years, I was more than surprised by the following data:

  • In 1889, they petitioned Queen Victoria to “stretch out towards us your mighty hand, that Niue may hide herself in it and be safe.” The ploy eventually must have worked since the Niue Constitution Act vests executive authority in Her Majesty the Queen in the Right of New Zealand. On my numerous trips to New Zealand, Niue had a reputation for a great whale-watching spot (something I regret missing).
  • In 2003, Niue became the first country in the world to offer free wireless internet to all inhabitants.
  • They are reputedly close to becoming the world’s first fully organic nation.
  • As a leader in green energy, they are in transition to 100 percent solar power.
  • In 2008, Niue became the first country in the world to provide laptop computers to all students. I suspect they have upgraded to smartphones and tablets by now.
  • Elections are held every three years. Since they do not allow political parties (everyone is an independent), term limits are not needed. This preserves the institutional memory.

In 2004, Niue was hit by a cyclone that disrupted the Niue Integrated Strategic Plan (NISP). The good news is that they still managed to pay off their national debt and are finally “debt free” – something the U.S. managed to accomplish in the administration of Andrew Jackson.

They have zero population growth so issues like unfunded pensions (e.g. SSA) or long-term healthcare liabilities should not be an issue for the next generation – something our Millennials will eventually find out about. “What?! You spent all our money and left us bankrupt?”

Rumor has it the people of Niue are puzzled by the inability of most modern nations to simply spend less than they make, and by the partisan rancor that causes so much gridlock and divisiveness. As you might recall, even our first president, George Washington, warned about the dangers of political parties.

Go Niue!

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].