Doug's Neuropsychic Prototype For The American Have-Not

NEUROPSYCHIC
PROTOTYPE
FOR THE
AMERICAN HAVE-NOT
NEUROPSYCHIC
PROTOTYPE
FOR THE
AMERICAN HAVE-NOT
DOUGLAS MORRIS
A Scribd Distribution:
Published by Douglas Morris at Scribd
Douglas Morris
Simpsonville, SC, USA
2010
Copyright © 2010 Douglas Morris
All rights reserved.
The light bulb logo on the cover image

is a trademark of Douglas Morris.
Scribd source version 1.1.1, dated 17 January 2010.

Based on manuscript version 1.1, dated 14 January 2010.
As used here for electronic publishing, version x.y means the

yth minor manuscript revision of the xth major published edition.
Version x.y.z additionally denotes the zth artifact of a particular
ebook distribution created for manuscript version x.y.
Thanks to the U.S. Government for publishing public domain

images that proved useful for the creation of the cover image.
From the U.S. Fish & Wildlife Service: “Juvenile California
Condor” by David Clendenen, “Turkey Vulture” by Lee Karney,
and “Night Fires” by Richard Johnson. From the Library of
Congress: ‘High above, over a true “home of the brave,” the
floating folds of the Star Spangled Banner symbolize the American
way of life to soldiers in training for the battles that will bring
freedom to an unhappy, war-torn world, Fort Knox, Ky.’ by Alfred
T. Palmer, and “Girl seated in a carriage on a hillside, holding rope
which is attached to chair in front of the carriage.”
Visit the author's public profile on Scribd at

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To shock us well
Preface
I want to rip out the cherished faults of your self-identity. This

book is my very first prototype, designed to be the right tool for
the job. It's untested, imperfect, and unrefined, but you've had
enough of the sweets approved by elitists. Regular Americans will
decide whether or not I have something substantial, the extent of
faults and shortcomings in this tool and the toolmaker, and the
reach of my exhortation to the people responsible for the greatest
heritage ever had.
I offer you something other than addiction to virtual, vicarious
living. America within and with the world is on a journey of
change like humanity has always been. You are powering that
change. You are the key. Self-examination hurts, but it should be
very rewarding. It's up to you. If you don't like your feelings, get
new ones: I am not a cog of your environment. Our stupidities
must die for our civilizedness to live. No civilized man is an
island, not in a tub of narcissism nor in a sea of fools. I ask you
for my freedom through our self-government.
If you wish to address me as a person, please feel free to send a
thoughtful email to: doug@cerebralshrapnel.com. The rest of the
story is best told by the story itself.
vii
Table of Contents
Preface vii
Disclaimer xv
Chapter 1 THE LEGACY DENUDED 1
1.1 Why This Primer........................................................1
1.2 Introduction..............................................................66
Chapter 2 FREE ENTERPRISE 101 69
2.1 Supply and Demand.................................................69
2.2 Elastic vs. Inelastic...................................................73
2.3 Price Controls...........................................................76
2.4 Money and Wealth....................................................78
2.5 The Inflationary Process...........................................80
2.6 What's Yours.............................................................82
2.7 The Inflation Game..................................................88
2.8 Your Interest, Please.................................................90
2.9 The Economic Record..............................................94
2.10 A Case Study..........................................................102
Chapter 3 ALIENS AND NATIONALS 101 105
3.1 Gentle Perversions..................................................105
3.2 Dot Com Refrain....................................................108
3.3 Era of Cannibalism.................................................110
3.4 2006 Chicanery.......................................................113
Chapter 4 SOCIOPSYCHOLOGICAL CANONS,
PSYCHOPHYSIOLOGICAL NECESSITY 117
4.1 Definition of Rich...................................................117
4.2 Objectifying and Commoditizing...........................119
4.3 Circular Theological Reasoning.............................120
4.4 Unbridled Emotion.................................................122
ix
x TABLE OF CONTENTS
4.5 Minimum Wage Reverence....................................124

4.6 Power and Discrimination......................................125
4.7 Self-sufficiency......................................................127
4.8 Sustainability..........................................................128
Chapter 5 SOCIOECONOMIC VERITY 133
5.1 Federal Deficit Spending........................................133
5.2 Worker Imports.......................................................145
5.3 Healthcare...............................................................157
5.4 The Oil Industry.....................................................173
5.5 Litigation................................................................193
5.6 Taxation..................................................................203
Chapter 6 INFECTION OF SOLUTIONS 233
6.1 Fillers and Hollows................................................233
6.2 Political Rhetoric....................................................235
6.3 Political Divides.....................................................237
6.4 Native Americans Et Cetera Wronged....................241
6.5 White Men Wronged..............................................257
6.6 Choosing Absolutists..............................................267
6.7 Federal Money Laundering....................................276
6.8 Top 4 Conjectures...................................................284
Chapter 7 RESTORING SANITY TO POLICY 289
7.1 Philosophical Enfranchisement..............................289
7.2 Intellectual Enfranchisement..................................293
7.3 American Epochs of Subjugation...........................295
7.4 The Fifth Branch....................................................298
7.5 The Prime Directive...............................................301
7.6 Treasonable Test of Democracy.............................306
7.7 Drivers Wanted.......................................................308
7.8 Well-defined Freedom Rings..................................309
7.9 Closing Remarks....................................................314
ACKNOWLEDGMENTS 335
FURTHER REVIEW 345
Legislative Web Resources.....................................345
Nonlegislative Web Resources...............................362
TABLE OF CONTENTS xi
APPENDICES 371
1. The Declaration of Independence (1776)...............371
2. Articles of Confederation (1777)...........................377
3. Constitution of the United States of America
(1787).....................................................................387
4. Polemic Poem Against Child Labor by Gillett
Sharpe, Circa 1833.................................................400
5. Constitution of the Confederate States of
America (1861)......................................................402
6. Senatorial Debate on the Meaning of Income,
1861........................................................................420
7. Senatorial Record of Corrupt Cod-Fishery
Subsidies, 1861.......................................................422
8. Third Convention of the National Labor
Union, Philadelphia, 1869......................................424
9. Commentary on Restoring the Gold
Standard, 1869........................................................426
10. Petition Against Importation of Chinese
Laborers, 1873........................................................428
11. Preamble of the Constitution of the Knights
of Labor (1878)......................................................430
12. Testimony on Labor Abuses, 1884.........................433
13. Labor Plank of Presidential Candidate
Woodrow Wilson, 1912..........................................439
14. Hitler's Consolidation of Power in the Early
1930s......................................................................444
15. Shays' Rebellion Week Designated, 1986..............447
16. U.S. Senate Passage of McCain-Kennedy
Amnesty Bill, 2006................................................448
17. Complaint Against City of Hazleton, 2006............452
18. Hazleton's Illegal Immigration Relief Act
Ordinance (2006)....................................................455
19. Ruling on Hazleton's Anti-Illegal
Ordinances, 2007....................................................457
20. U.S. Senate Passage of $700 Billion Bailout,
2008........................................................................463
21. U.S. House Passage of $700 Billion Bailout,
2008........................................................................467
xii TABLE OF CONTENTS
ENDNOTES 479
Ch. 1: The Legacy Denuded.............................................480
Ch. 2: Free Enterprise 101................................................538
Ch. 3: Aliens and Nationals 101.......................................543
Ch. 4: Sociopsychological Canons, Psychophysiological
Necessity................................................................546
Ch. 5: Socioeconomic Verity.............................................554
Ch. 6: Infection of Solutions.............................................631
Ch. 7: Restoring Sanity to Policy......................................669
Acknowledgments..................................................681
Further Review.......................................................682
FIGURES
2.1 Supply and Demand Model......................................70
2.2 Supply Force Increase and Shift...............................71
2.3 Supply and Demand Model on a Grand Scale.........74
2.4 Market Volume Potential..........................................76
5.1 U.S. Healthcare Spending Trends..........................161
5.2 World Oil and U.S. Gasoline Prices.......................174
5.3 World Crude Oil Production...................................181
5.4 World Energy Consumption by Source, 1973........182
5.5 World Energy Consumption by Source, 2006........182
5.6 U.S. Energy Consumption by Source, 1978...........187
5.7 U.S. Energy Consumption by Source, 2006...........187
5.8 Brazilian Oil Factors..............................................192
5.9 Prevalence of U.S. Legal Services Employment....197
5.10 U.S. Legal Services Real Production.....................198
5.11 Legal Services Percentage of Real U.S.
Production..............................................................198
6.1 U.S. and World Petroleum Consumption...............268
6.2 U.S. Percentage of World Petroleum
Consumption..........................................................269
TABLE OF CONTENTS xiii
TABLES
2.1 A U.S. Economic Record.........................................98
5.1 Annual U.S. Government Financial Statistics........135
5.2 Comparison of the Budget and the Financial
Report of the United States Government...............138
5.3 Annual Federal Reserve Financial Statistics..........142
5.4 ExxonMobil 2005 Summary Annual Report
Data........................................................................175
5.5 Comparative U.S. Employment by Occupation.....195
5.6 Last Three Rate Schedules of the Social Security
Tax..........................................................................231
6.1 U.S. Government Reported Human Trafficking
Countries................................................................243
6.2 Central/Provincial Government Revenue
Percentage from Oil and Gas.................................268
6.3 Year 2004 Petroleum Oil Consumption by
Nation.....................................................................269
6.4 U.S.-Middle East Time Line..................................270
7.1 Comparative Quotes from U.S. Government
Sources...................................................................304
FR.1 Legislative Web Resources.....................................351
FR.2 A Chronology of U.S. Lawmaking.........................353
FR.3 Nonlegislative Web Resources...............................362
Enotes: EMTALA Usage.....................................................574
Enotes: Brazilian Oil Data...................................................596
Disclaimer
This disclaimer is dedicated to all the litigious worms and legisla-

tive vermin out there who make it prudent. And now a waste of
print: Trademarks shown or mentioned in this work, like those that
are not, belong to their respective owners. I am not a historian, an
economist, a lawyer, a politician, a psychologist, a banker, a
diplomat, or a military strategist. I can't spell very well either. I
claim no expertise upon which you may rely in any capacity what-
soever. No warranty is provided for the ideas, opinions, and
expressions contained in this work. Use of this work as a book, as
a doorstop, as an object of utter disinterest, or in any other way,
except as a product for you to purchase simply for my ultimate
benefit and satisfaction, is not recommended.
If I were rich and powerful, I could get virtually any opinion as
an expert's under oath, virtually any economic recommendation
backed by credentials, and virtually any legal position with certifi-
cation. Expert opinions poorly approximate objective opinions.
You can adopt an expert opinion, but you can't adopt an objective
opinion. You have to earn an objective opinion with hard work,
the dear price that commands value. My perspective has undoubt-
edly been sharped by Generation Dope, now in the ascendant of
political power and academic expertise.
I do not claim to be an expert in any field, much less all the
fields represented by this book's content, but that typifies the prob-
lem. I have yet to met the single expert historian, economist,
lawyer, politician (drop politician?), psychologist, banker,
diplomat, and military strategist who was also an author. Experts
are circumscribed by fields of expertise, yet every day the stupi-
dest of us carry cross-disciplinary convictions, make cross-disci-
plinary decisions, and unilaterally take cross-disciplinary actions.
Funny how the real world works. In real life the truth carries
context. In real life the appropriateness of a principle's application
is discerned with vetted philosophy—if an opinion touching civi-
lizedness is worth a darn. To effectively be ‘good’, one must first
xv
xvi DISCLAIMER
objectively develop one's philosophy: one must personify wisdom.

Data is to knowledge (or expertise) as knowledge is to wisdom.
Real-life civilization requires common wisdom.
I don't claim to have cross-disciplinary expertise, but I do claim
—I don't really, you've read this disclaimer this far?—to have an
objective cross-disciplinary opinion, something suited better for
the real world and worse for the the legal world and this
disclaimer. In all cases of inconsistency between the applicability
of the real world or its representation by this work and the applica-
bility within the legal realm, including but not limited to the realm
of tort law, of any or all of this disclaimer's provisions of declama-
tion express or implied, such provisions being applicable to any
and all representation by and use of this work as may be construed,
all of this disclaimer's provisions of declamation express or
implied shall prevail, except that any provision of declamation or
part thereof deemed by any court to be illegal, invalid, or unen-
forceable shall be fully severable and shall, without prejudice from
consideration of application of the same to another set of
prevailing circumstances real or imagined or both, be severed in
whole or in part or not at all in a manner to salvage and preserve
the greatest and most advantageous protection this disclaimer may
afford with the set of prevailing circumstances at issue considered
autonomously.
NEUROPSYCHIC
PROTOTYPE
FOR THE
AMERICAN HAVE-NOT
Chapter 1
THE LEGACY DENUDED
1.1 Why This Primer
Why? Because the laws of this country do not prevent the strong
from crushing the weak.
—Woodrow Wilson, candidate for President
The human rights we enjoy today trace a lineage to medieval

England and ancient Greece. In the early 19th century, fledgling
democracy—the newfangled institution of human rights—was
shedding the institution of slavery, stepwise but inexorably. The
obstinate United States and likewise the mighty British Empire
passed legislation in March 1807 that would abrogate the slave
trade in the forthcoming January and May, respectively. Not until
the 1830s did the Empire abolish slavery altogether. The progres-
sive United States of America, then mustering only a fringe moral-
istic movement of ‘agitators’, would take longer.1
1 In England, the Charter of Liberties of 1100 and the Magna Carta of 1215
defined rights contrary to absolute autocracy. Hellenistic rationalism—
think Plato and Aristotle—beset by authority and disparaged by superstition
has followed a tortuous course over time, geography, and language to arrive
at Western rationalism, still beset and disparaged as if the nuclear bomb is
not demonstrative enough. The U.S. prohibition of the slave trade was
effected at the earliest time allowed by the compromise specified by the
Constitution of the United States, article 1, section 9, clause 1: “The Migra-
tion or Importation of such Persons as any of the States now existing shall
think proper to admit, shall not be prohibited by the Congress prior to the
Year one thousand eight hundred and eight, but a Tax or duty may be
imposed on such Importation, not exceeding ten dollars for each Person.”
See the endnote referring to the paragraph this footnote does to access
slave-trade legislation via the Internet. Other sources, like the one for
1
2 1. THE LEGACY DENUDED
Even in the antebellum America of potent State autonomy, the

Federal Government was a wealth redistribution machine. The
progenitor of the Internal Revenue Service was not yet created
under the Lincoln presidency. U.S. political booty was then
demarcated by tariff (external revenue) and would not satiate all
principals of socioeconomic power. The resulting rivalry would
surmount constitutional remedy to a bloody, historic zenith.
Industry of the North enjoyed protectionism and even, as with
New England cod fishermen, outright subsidy. Domestic shippers
and shipbuilders enjoyed the prohibition of foreign competitors.
Southern agriculture reliant on northern transport felt the toll. The
means of fugitive slave recovery further put the two U.S. sections
of free and slave at odds. It was a clash of big businesses from
alien economies. The balance of power was determined by the
Union's sectional proportion, and the Union was expanding.
Northern special interests naturally opposed the expansion of
slavery, not slavery per se.
Plebeian interests, then as now, were more abstract. Culture and
psychology affected the common (and still exclusively white)
people with vested interest and potential cost. The political
contest for the ‘hearts and minds’ of regular Americans both north
and south revolved around a literal interpretation of Scripture.
Christendom once dispensed the Word of God from obscure Latin
Bibles. The printing press dispensed Bibles and literacy in the
tongues of nations. Democratizing Christianity was the Protestant
Reformation of the 16th century. Yet as punctuated by the infa-
mous three-fifths clause of the United States Constitution, Chris-
tianity sanctioned and utilized slavery throughout the first eighteen
centuries of its existence. The 19th century would change that
about the Christian world.
To Americans the Word of God—the King James Version and
for learned clergy original Scripture—was esteemed with a literal
and definitive meaning but nevertheless interpreted on slavery
with a flexibility suggestive of Tao Te Ching. So too then was
morality amenable to political objective. Pro-slavery clergy
extolled the legitimacy and virtues of slavery the Christian way
(e.g. Leviticus 25:44–46, Ephesians 6:5–9) and cultivated the
crucial supplement to Biblical sanction most ‘peculiar’: racism.
Reverend W. G. Brownlow proclaimed slavery alone could
‘elevate the negro race from their state of pristine barbarism.’
Wilson's quote, are detailed in the endnotes.
1.1 Why This Primer 3
Abolitionist clergy generally could skirt or dispute Biblical sanc-

tion, attack the Southern practice, and expound a Christian fellow-
ship of both races. Reverend Theodore D. Weld publicized the
inhumanity of American slavery as it was. The uncompromising
Reverend George Bourne framed all slaveholders as violators of
Scripture with the sin of ‘manstealing’ using Exodus 21:16. Black
preacher Reverend James W. C. Pennington labeled slavery a ‘vile
monster’ and held, “The gospel rightly understood, taught,
received, felt and practised, is anti-slavery as it is anti-sin.” The
polemics, intensified by the 1830s agitation, were prelude to the
war finally begun 12 April 1861 with the Confederacy's attack on
Fort Sumter.
The complex social interactions and varied motives of those
times offer us a hindsight look at ourselves. Back then the affluent
on both sides eschewed military service. Back then Union soldiers
were inadequately equipped with defective rifles, gunpowder, and
shoes by unscrupulous vendors. Back then rich slaveholders
hoarded food while the children and wives of Confederate soldiers
starved. Back then religious convictions of the Deep South drove
its people headlong into a war of tainted formulation that ulti-
mately could not be won.
Easily lost in the shuffle is the practical reason why slavery was
wrong. Slave power was the imbalance of social power main-
tained by social deficiency. “I say nothing of the baneful effects of
slavery on our moral character,” wrote a Virginia judge in 1801,
“because I know you have been long sensible of this point.” Aris-
tocracy had been outgrown. Health, even that of socioeconomic
institutions, requires congruency with natural balance, potential,
and growth. Lysander Spooner observed by 1845, “law is an intel-
ligible principle of right, necessarily resulting from the nature of
man; and not an arbitrary rule, that can be established by mere
will, numbers or power.” The aggregate value of society is a
curious blend of individual and team results. If social fabric vests
us to deal the aggregate bounty, morality must surely bind us to
foster its maximal stable size. With only a smattering of human
sophistication, slavery by definition fails the test. Free enterprise
fares much better in principle. The caveat is a mass requirement
of exercised sophistication made clear by still more history.
The Jamaican slave rebellion of 1831 resulted in property loss
to planters in the millions of dollars. Fellows of the planters' inter-
ests retaliated with the destruction of missionary property. The
British public and Parliament were roused to decide Jamaica's

future as either having Christian missionaries of varied denomina-
tions or slavery. Parliament passed on 22 September 1833 the
Emancipation Act directed at all of its West Indies.
The act also directed 20 million pounds of taxpayers' money to
planters and their London creditors. The British Empire did not
abolish slavery in the 1830s without practical reasons. Sugar
prices were depressed by competition, and costs were higher under
British law. The British West Indies could not cheaply and legally
import captive replacements, and the whipped slave population
declined despite the planters' necessity otherwise. Population
decline did not happen in the U.S. South where a slave's life
expectancy was twice as long. Sugar producers Brazil and Spain's
Cuba gained competitive advantage by importing slaves. Addi-
tionally, the British homeland imposed a latitude for missionaries
to counter the human degradation necessary for obedient slaves.
With the rebellion the abolition of British slavery began in earnest.
The intent was to bestow the freedom of being Christian and hired
as plantation workers.
Notwithstanding the nation's morals, London's financiers knew
one thing—okay, besides recouping their investments—they knew
another thing: British slave labor in the West Indies was increas-
ingly unprofitable, but free labor of the Industrial Revolution was
very profitable. Thomas Carlyle would later write in an 1849
pamphlet, “Our own white or sallow Ireland, sluttishly starving
from age to age on its act-of-parliament ‘freedom,’ was hitherto
the flower of mismanagement among the nations; but what will
this be to a Negro Ireland, with pumpkins themselves fallen scarce
like potatoes?” With the British free-labor paradigm, the rewards
of unprecedented technical efficiencies were not squandered on
wage-earning hirelings crowded in slums and dismissed from
employ as economy warranted.
Capital interests long had subjugated labor, English and Irish
alike. A Protestant oligarchy of Ireland's landowners mostly living
abroad imposed exorbitant rents on impoverished Irish Catholics, a
labor pool cheaper than subsistence. Poor-law (welfare) adminis-
tered through the Anglican Church reinforced the labor glut with
perverse design—lately refusing relief to starving families in
England with a son or daughter that did not work.
Children as young as six years old worked longer, harder hours

for less money than the adults they replaced. Overseers compelled
tired youth with ‘chastisement’, a severe beating using a leather
strap, a stick, or a staff-sized roller called a billy. A snag from the
strap an operator attached to a running machine meant death,
sometimes dismemberment. The relentless toil deformed growing
limbs. At the end of this career they emerged inept delinquents
with bleak prospects of survival. The advancing stigma of
Britain's Industrial Revolution—eventually personified a decade
later as Ebenezer Scrooge—permeated throughout the States.
“Alas for Tiny Tim, he bore a little crutch, and had his limbs
supported by an iron frame!” Wage labor, like slavery, was
reproachable in the practice. An aloof industrialist need not incon-
venience himself or his business affairs with the enrichment of
commoditized underlings. Under this seminal yoke did white
labor of the Occidental economy chart escape into anarchism and
communism.
The first entrenchment of modern American industry, inspired
by earlier observations of those English mills, began in 1814 with
a design intended to dispel social concerns even then. That legacy
begot preeminent Lowell, Massachusetts, the City of Spindles,
garnering notable supporters and critics alike. In regard to child
labor practices, Lowell was undoubtedly preferable to Manchester
and Leeds, England. After visiting Lowell in 1842, Charles
Dickens said of the two factory systems, “The contrast would be a
strong one, for it would be between the Good and Evil, the living
light and deepest shadow.”
Despite the acclaimed conditions, mill-girls organized for their
labor interests during the 1830s and 1840s. As the latter decade
ebbed away, the labor rewards at Lowell deteriorated as the exem-
plary Yankee girls relinquished positions to indigent Irish immi-
grants. The system of deepest shadow would become standard by
the 1880s across the Eastern United States. The movement to stop
the evils of child labor, yet to be derived largely as a mid-1870s
offshoot of the movement to protect animals, had decades to go.
Regarding the national swell of unregulated immigration, J. D. B.
De Bow affirmed its importance to western expansion but warned
of ‘its moral influence on our institutions’ as a threat to American
democracy amid a complete lack of public apprehension.
Unavoidably, Lowell was ongoing fodder in the American debate

about antebellum economies. Criticism of the factory system fore-
boded free labor's adolescent tribulation in the United States.
Outspoken slavery advocate George Fitzhugh pictured
employers within industrial economies as ‘riders of hired horses’
who ‘boast of the low rates at which they procure labor.’ Aboli-
tionist Rev. Orestes Brownson declared about the free-labor
economy, “It is the system which in name sounds honester than
slavery, and in substance is more profitable to the master. It yields
the wages of iniquity, without its opprobrium. It will therefore
supplant slavery, and be sustained—for a time.”
The context of the War for Southern Independence, buried at the
crossroads of the tangible and the psychological, is the labor issue.
Protectionists and slaveholders clashed over spoils of captive
labor. More sublime are the aspects relating to human rights.
Abolitionists became proxy for the right to own one's labor.
White, northern workers of the free-labor movement became
proxy for the right to command a natural and fair market value.
The election of Lincoln provoked the secession of Slave States
one by one. South Carolina jubilantly led the disunion 20
December 1860 blasting fireworks and the music of marching
bands. Disunion was not a new political concept. It had been
threatened in the U.S. Congress several times already over the first
half of the century. Tennessee's Andrew Jackson, a fiery slave-
holder born in South Carolina, had menaced the audacious dissent
of his native State over tariffs in 1832. Some Slave States were
less enthusiastic for secession, particularly the Upper South, not
for any want of fervor among individuals but rather agreement.
Not surprisingly, threats on Lincoln's person became common-
place. His inaugural tour of the country by train from Springfield,
Illinois to Washington, D.C. promised a tempting target, especially
below the Mason-Dixon line.
Jefferson Davis became President of the Confederate States of
America on 18 February 1861. Seven States had formed a new
republic likely to spread as President James Buchanan idled.
Three days later Lincoln received warning in Philadelphia of a
viable assassination scheme centered around his planned stop in
Baltimore on the upcoming 23rd. Allen Pinkerton with his detec-
tive agency and law enforcement independently uncovered the plot
and warned the President-elect at nearly the same time. The anti-
slavery Pinkerton made the discovery while investigating for
northern railroad capitalists the threats to their infrastructure under

mounting sectional tensions. Pinkerton staked his life on
conducting the future president safely to Washington and achieved
the task. If the potency of Allen Pinkerton's private law enforce-
ment services had any wanting, they were now gone.
Warfare bestowed political license to Union Government.
Secession devolved control of Union Government to northern
interests. The Morrill Tariff Act of 2 March 1861, ch. 68 was a
foreseeable consequence, but something more profound
happened.2 Wartime innovations degenerated the respectful sepa-
ration of government and economy preeminent and anomalous in
the history of nations to this day.
The first internal revenue law of the United States was the Act
of 5 August 1861, ch. 45. The act specified an annual real estate
tax totaling $20 million and an income tax. The real estate tax was
never assessed. The Act of 1 July 1862, ch. 119 was the first
major revision to the new tax law. The 1862 act led off by creating
the office of the Commissioner of Internal Revenue. The federal
income tax was not enshrined as an unassailable revenue device
until the 16th Amendment was ratified in 1913. Since then polit-
ical favors have convoluted that tax code into a patrons' and
accountants' welfare program.
Direct taxation suffers the limitations of targeting wealth by
construction. The tandem of debt and banking target wealth by
contagion with elegant totality. These facts were not lost on the
37th Congress. That the depreciation of continentals funded the
Revolutionary War was well know. The first wealth seizure by
manipulation of the United States dollar started innocently enough.
Legislation like the Act of 23 December 1857, ch. 1 and the Act
of 22 June 1860, ch. 180 sold institutional debt of the Federal
Government in the manner of corporate bonds. These special debt
instruments were stylized as treasury bonds regularly paying
interest or stock paying a dividend for investments of larger value
and duration. The smaller debt instruments doubled as a govern-
ment currency and were called treasury notes. These investments
2 The ‘ch.’ abbreviates chapter. Laws before 1957 were given unique chapter
numbers within a session of Congress. Chapter numbers are not necessarily
unique to a year. A specific date is not necessarily unique to a chapter
number.
were backed by the government's power of taxation. Such were

the provisions of federal borrowing and banking enacted by
Congress preceding the Lincoln presidency.
The Act of 17 July 1861, ch. 5 was different. It gave the
Federal Government power to impose banking patronage in its
financial dealings. The U.S. Treasury could now issue treasury
notes not bearing interest as a compulsory currency ‘for salaries or
other dues from the United States.’ The new notes could be
converted subject to a $100 minimum into conventional treasury
notes bearing interest over three years. These first ‘greenbacks’
could also be redeemed on demand in Philadelphia, New York
City, and Boston. The act failed to specify in what this special
currency was redeemable. Perhaps it was not oversight but antici-
pation. At this point, gold coin of the U.S. Mint—the eagle's gold
content defining ten dollars—was still the monetary standard held
to paper currency issued by any U.S. institution.
The Act of 5 August 1861, ch. 46 amended the law concerning
the new demand notes. St. Louis and Cincinnati were added to the
available redemption locations. Furthermore, the demand notes
became ‘receivable in payment of public dues’ if they were not
already. The supplementary act made other refinements, but
inherent limits of the original design were significant whilst the
war continued. From the beginning, demand notes could be reis-
sued as they were redeemed for a limited time. It was a conceptu-
ally small leap for Congress to adapt the reissue mechanism from
imposed currency to imposed debt instruments.
The First Legal-Tender Act of 25 February 1862, ch. 33 directed
the Secretary of the Treasury to replace the demand notes ‘as
rapidly a practicable’ with new United States notes. Greenbacks
of this next generation were not redeemable but were convertible
into treasury bonds. Up to $150 million of the new currency was
authorized for repeated circulation. A monumental $500 million in
treasury bonds was authorized for conversion of the almighty
greenbacks and for issue otherwise. Precious-metal coin was still
legal U.S. money and admittedly superior by its distinguished
treatment under the new law. The act decreed U.S. notes ‘shall
also be lawful money and a legal tender in payment of all debts,
public and private, within the United States, except duties on
imports and interest’ on government debt, the latter exception to
attract further investment. (Compare the law's phrasing to the
statement on any U.S.-dollar-denominated bill of today.)
Changing the scope of the greenback introduced government

currency to the entire U.S. economy. The goal was increased Trea-
sury holdings of gold coin, gold bullion, and debt investments.
The Second Legal-Tender Act of 11 July 1862, ch. 142 raised
the cap on outstanding U.S. notes by another $150 million. Just
like the almighty greenbacks issued under the first cap, these
greenbacks the Treasurer or his assistants ‘shall receive in
exchange *x*x* for an equal amount of bonds.’ But unlike the
U.S. notes under the First Legal-Tender Act, ‘any notes issued
under this act may be paid in coin, instead of being received in
exchange for certificates of deposit as above specified, at the
direction of the Secretary of the Treasury.’ It pays to have friends
named Salmon P. Chase if you're not busy soldiering.
The third and final legal-tender act was the Act of 3 March
1863, ch. 73. It authorized additional debt instruments up to $900
million. The most important design detail was the termination of
greenback conversion. According to the eventual recollection of
Hugh McCulloch—he would soon be the last Secretary of the
Treasury under Lincoln—the process of eliminating U.S. notes
was expected to limit economic perversion to the war effort. “So
sound was the sentiment of Congress at that time,” he wrote later,
“I hazard nothing in saying that, without this provision, the legal-
tender acts could not have been passed.” The last legal-tender act
was passed without the provision according to the last sentence of
that act's section 3. Lincoln signed it as well.
The legality of U.S. notes were challenged in the courts. The
U.S. Government was not alone in its preference for hard currency.
The judicial process shook in political contest upon the constitu-
tionality of greenbacks over the remaining 1860s. The first deci-
sion on the question by the Supreme Court was given 7 February
1870, in the negative. The Honorable Chief Justice Chase articu-
lated the decision that made his previous work with greenbacks as
Secretary of the Treasury unconstitutional. The constitutional
reproach was overcome by the Court's reversal on 1 May 1871, but
the design of the nation's currency system was far from settled.
The U.S. Government resumed specie payments for paper dollars
on 1 January 1879. Over the next hundred years the prerogative of
fiat money vacillated, much with peace and war.
Today's greenback is the Federal Reserve note. It's the one that
says ‘FEDERAL RESERVE NOTE’ across the top border on the front
side. Clarification about the legal meaning of ‘LEGAL TENDER FOR
ALL DEBTS, PUBLIC AND PRIVATE’ is in order. Federal Reserve notes

are good for all debts, not all transactions. If a seller takes credit,
that seller becomes a creditor and must accept the notes. If a seller
does not take credit, the terms of exchange are negotiable. Barter
is not illegal according to the federal definition of money. (Other
complications like sales tax I am ignoring here.) A clothier may
‘sell’ a pair of socks for a dozen glazed donuts. That and a
quarter-pound provision of fresh coffee grounds sounds delightful
in the midst of this half-finished manuscript. So back to life's
struggle of understanding life's struggle. As if without recursion
the merit challenge of life is not enough, but to strive we were
made.
At the onset of the Civil War, States individually governed
banking by the grant of State banking charters. National banking,
the kind transcending State borders with a national charter, had
been a hotly contested issue in the antebellum Union spanning
North and South. The Second Bank of the United States was the
last bank to have had a national charter. Like what few national
bank charters had ever been, the Second's charter granted in 1816
had been an uncontested national singleton closely tied to the
Federal Government.
The political and economic considerations of national banking
were complicated enough; the unobvious details and dealings,
crucial. Plain was the charter's contradiction to the Jeffersonian
ideal of a democracy in economic representation spread widely
across agriculturally engaged landowners. Also plain was the
bank's privileged corruption.
The national charter eventually expired in 1836 while Andrew
Jackson blocked Congressional efforts at renewal. The President
explained in his veto message of 10 July 1832, “If our Government
must sell monopolies, it would seem to be its duty to take nothing
less than their full value; and if gratuities must be made once in
fifteen or twenty years, let them not be bestowed on the subjects of
a foreign government, nor upon a designated and favored class of
men in our own country.” The favored class he clearly meant were
bankers of the northeast. “In the principle of taxation recognized
by this act, the western States find no adequate compensation for
this perpetual burden on their industry, and drain of their currency.
The branch bank at Mobile made last year 95,140 dollars; yet,
under the provisions of this act, the State of Alabama can raise no
revenue from these profitable operations, because not a share of
the stock is held by any of her citizens.”
The National Banking Act of 25 February 1863, ch. 58 defined
a novel design. The novelty was not that multiple banks would be
chartered in the free-banking paradigm used by States. Each bank
would issue a national currency redeemable in U.S. notes. Are you
getting the idea of recursion yet? But that of itself was not the
beauty of the design. The act required each national bank to
deposit with the Treasury a security of treasury bonds adequate for
the full redemption and payment of all its circulating notes. The
circulating notes themselves were not legal tender for all debts.
The national banking notes were ‘authorized to issue and circulate
the same as money’ and acceptable for those financial transactions
with the U.S. Government not contrary to the legalized hoarding of
coin. The scheme leveraged inflationary paper to sell debt to the
banking industry. Brilliant really, but another conceptually small
step within the sequence.
For the security of aforesaid debt purchases, the Treasury would
issue each bank an equal amount of national bank currency. The
circulation notes were to be uniquely numbered and marked with
the guarantee of the U.S. Treasury. They were also to have a blank
area for imprinting by the national bank before its issuing of the
notes into circulation. After all, each bank had to redeem its own
notes.
Here in the early 21st century, if you look at the current Federal
Reserve notes of the older style, the Washingtons, you will see
something similar. Each of the twelve banks of the Federal
Reserve System are designated with a letter. The Federal Reserve
Bank of New York is assigned the second letter ‘B’. Each bank's
seal contains that bank's letter designation. The note's serial
number leads with the same designatory letter. The recently styled
Federal Reserve notes have the seal of the U.S. Treasury as before
and now a seal of the Federal Reserve System at large. An addi-
tional letter is also prefixed to the serial number denoting the
banknote series.
Though clever, the national free-banking design was originally
inadequate. It was redone with the Act of 3 June 1864, ch. 106.
The major flaw with the original legislation was the noninter-
changeability among bank notes. Bank X did not redeem notes
from banks Y or Z. That defect made impracticable a national
currency of banks individually lacking geographic coverage. The

major design improvement was a clearing house centered on New
York City, the city of most financial influence in the New World
then and now. Today New York is home to the all-important open
market operations of the Federal Reserve. I will describe those
operations later.
The booty of government taxation devices did pay for a victo-
rious war. The federal wealth transfers also paid for a massive
orgy of fraud uncovered by Colonel Henry Steel Olcott and chron-
icled in his book The War's Carnival of Fraud (1878). The war
did overthrow the institution of personal slavery. The Union estab-
lishment was not shouldered on personal slavery, but it was shoul-
dered in part on economic ties to the South.
Some wartime legislation targeted beneficiaries in the broader
Union economy. The homestead acts of 20 May 1862, ch. 75 and
21 March 1864, ch. 38 encouraged the free-labor system in the
maturing territories. Immigrants could receive land under the
homestead acts as well, and not depress wages. Immigration
volume fell to a low point in 1862 while public regard for immi-
gration improved. The movement westward and the war casualties
thinned the labor population. The Union Army wanted replace-
ments. So did capitalists. America's industrial revolution was
upgrading to an unintegrated, exploitable, cheaper labor force.
Native labor was about to face decades of wholesale disfavor.
The Act to Encourage Immigration of 4 July 1864, ch. 246
involved the Federal Government with New York State's immigra-
tion facility Castle Garden on Manhattan. Well situated New York
City was far and away the most important port of immigration in
the country. Land borders were not managed at this time, making
land-based statistics impossible. The Federal Government would
eventually take sole control of immigration through New York
City and not long thereafter in 1893 move operations to Ellis
Island.
The immigration act of 1864 more importantly blessed alien
contract labor law. American employers were authorized to obli-
gate a foreigner on foreign soil to labor up to 12 months in
exchange for passage to the U.S work site. Opposition to the
encouraged immigration grew until the act was repealed with the
Consular and Diplomatic Act of 30 March 1868, ch. 38.
Ethnic differences political and economic were hardly absent

midway through the war. The Republican Party via the New York
State legislature had replaced in 1857 the New York City police
force, the one obliged to Democratic city leadership. The two
police forces actually fought at City Hall while the maneuver's
constitutionality was tested in the courts. Democratic leaders had
for decades cultivated the vote and thuggery of immigrants.
Whigs had been know to cultivate the same of natives. The
majority of New York City voters, but not quite residents, were
foreign born. Leading ethnic groups within the city are suggested
by those foremost in the foreign-born sample of the 1860 U.S.
census: 39-percent Irish, 31-percent German, 10-percent English.
Impoverished Irish and nonvoting blacks, categorized as native,
were at murderous odds over longshoreman jobs. Blacks under
police escort were used by the longshore employers to break Irish
strikes. So when the draft compulsory to those indigent whites
and noncompulsory to the affluent (via a $300 substitution fee)
was exercised for the emancipation of more rival blacks, Irish
hatred bred by English tyranny and stirred by American capitalism
boiled over.
The Republican-led draft effort was ill prepared and seemingly
ill conceived, despite the new police force. Gangs of thousands
were part of the city's political process. From the draft's begin-
nings, Irish demonstrated a will to use deadly violence to thwart
the collection of lottery entrant particulars. Most of New York
State's militia was away repelling General Lee's invasion of Penn-
sylvania. The metropolitan police and residing token military
numbered a couple of thousands. The angry mobs that coercively
gathered work site by work site on the morning of one fateful July
13th swelled into the thousands upon thousands upon thousands.
That day more than a block's worth of buildings were burned,
including several office buildings of the draft officials and the
stately Colored Orphan Asylum. The New-York Tribune building,
home of the Republican-aligned newspaper, was vandalized and
the mayor's house was threatened. Several policemen were
attacked and nearly killed. ‘Negroes’ of every age were lustfully
hunted. Mobs, not exclusively male, rained stones and chunks of
brick even from rooftops. They wielded iron bars and knives.
They used guns of a technology then just made interesting and
efficient. More could be had at the gun factory on Second Avenue
and Twentieth Street. Police at that armory were able to stave off
the mob for a while. They had not fired a shot when a large rioter
brazenly smashed the front door with a sledge hammer. As he
ventured headfirst through the break his brains were introduced to
the floor. Inevitably, the too few 35 or so policemen fled, and this
mob armed itself to the teeth. Police volunteers and nearby militia
were requested. That was only the first day. Fully three more days
of anarchy raged. These public disorders were the Draft Riots of
1863—the deadliest riots in American history. Over a hundred
were killed if not over a thousand.
Ethnic violence was nothing new in racist, bigoted America, but
neither was stubborn harmony in democratic America of interracial
marriages, a handful of wealthy blacks, and abolitionist preachers.
The effect and effectiveness of violence on social change must be
judged within the power structure of society. More to the point,
intra-labor class fighting had little effect on social structure
because it had little effect on the ruling class. The Civil War is
unusual for the open conflict within the Establishment. The Draft
Riots during the Civil War rounded out the expression of a logical
tripartite division of civil struggles by exemplifying the intra-labor
and establishment-labor varieties. Far more common in the
remarkably stable and productive history of the nonagenarian
United States were the two types of upheaval undivisive to the
Establishment and embodied by subcultural riots and strike
violence. Rare U.S. rebellions are also part of the historical
record, going farther back than labor-market struggles.
Black slaves in colonial Manhattan revolted and fled in 1712
using fire, knives, and guns. Mysterious arsons, upper-class panic,
trials, hangings, and burnings at the stake characterized the social
turmoil that followed 29 years later. Two male corpses, one white
and one black, initially, swung together by chains in view of New
York Harbor. The ominous, physical poetry climaxed in the
reeking burst of the former corpse poignant enough to repel fisher-
men.
Eighteen thirty-four was an especially eventful year for the
island settlement turned New York City. The domineering Andrew
Jackson was in his second term as President. His Democratic
Party based in the city's Tammany Hall held a similar demeanor.
Tammany thugs not beyond killing worked polling places during
the local elections of that April. Native-born Whigs from Masonic
Hall would not be deterred by Tammany's assaults. Police inade-
quacy was evidenced by injury to the mayor. The potential for
violence between factions escalated as thousands from each polit-

ical camp gathered around an arsenal held by the Whigs. The
State military arrived in time to avert pandemonium.
The following July is when mobs raged four consecutive nights
in anti-abolitionist riots of 1834. One hundred fifty arrests were
made. Abolitionists, blacks, and their housing were attacked by
the usual means. The unusual feature was the planned coordina-
tion with residents of Five Points. Members of the community
knew that to escape attack they were required to show their white
faces in front windows by candle light. The streets were lit
brightly. The homes of blacks burned brighter.
Then in August white gangs largely comprised of Irish immi-
grants terrorized blacks of Philadelphia for three nights. The
homes of middle-class blacks in mixed neighborhoods were the
primary targets. Again the compulsory lighting of windows, this
time with more costly lamps, ferreted out blacks. Two black
churches were destroyed, and it seems one black was killed. Some
800 police and militia finally stopped the violence. A citizens'
committee reported motive for the strife that essentially was the
competitive and preferential employment of blacks over whites.
The peculiar exception was irritation over clamorous church activ-
ities. The Niles' Weekly Register of 30 August 1834 reported
subsequent assailment in Philadelphia: “Parties of white men have
insisted that no blacks shall be employed in certain departments of
labor.” Ten years later the same city experienced its bloodiest
riots, pitting Catholic Irish against white, nativist Protestants. At
one point the nativists exchanged cannon fire with Pennsylvania
State militia protecting a Catholic church. In all no less than
twenty died and over one hundred were injured. The focus of the
dispute was the role and version of the Bible to be had in public
schools.
Those violent events and many more are important from a
historical perspective. Industrial progress began to push social
change of a tumultuous extent not seen since the revolution of the
Founding Fathers. From Boston to New Orleans, from Cincinnati
to Baltimore, mobs and riots made 1834 a banner year of social
upheaval for the nation at large. Americans were nothing if not
truly engaged in the democratic process and the development of
democratic culture: politics-out-of-doors style. It was a long way
to the introspective sophistication kindled in the 1950s and extin-
guished with zealotry in the 1960s. A nation pondered how stifled
merit festering at intersocietal boundaries could be relieved by

release. Today, ‘content of character’ ostensibly means more than
it did, but individualism has gone horribly awry. The past lessons
about systematic social design and attendant consequences have
been forgotten.
Within the Union's thriving wartime economy, employers took
advantage by easily raising prices but not wages. Extreme was the
case of seamstresses with nominally decreasing wages. These
ladies proudly traded monetary compensation for social status by
shunning the better paying household jobs prominently done by
Irish and black women. Costs of the Union war effort were
unevenly shared, but it was merely a balloon payment punctuating
a greater trend. Socioeconomic changes palpable by the late Ante-
bellum period—despite the agrarian domination of American
livelihoods—swelled the lowliest ranks comprised of unskilled
labor. Hard work was no tonic for a machine tender. The
premium of other ranks were increasingly buoyed. Even in
infancy, the Industrial Revolution generously serviced middle-
class needs as consumers but not as producers. The rising middle
class of urbanizing America would be increasingly dependent on
support from the new economy. The war years altered government
involvement in that new economy, not so much its course.
President Lincoln was relentless about his singular goal of
restoring the Union expanse. Triumph came, but at great sacrifice.
General Lee surrendered to Grant at Appomattox, Virginia on 9
April 1865. With the 15th, Lincoln was pronounced dead. A
month later Union victory was complete. The national cost
counting both sides measured two percent of the population in
deaths of combatants and five billion dollars in direct expenditures
(using dollars of the time). Even in death, Lincoln had economic
impact. George Pullman advertised his sleeping-car company in
association with Lincoln's funeral procession, roughly tracing the
reverse of the 16th President's inaugural tour.
Lincoln's death did not kill the heavy-handed techniques of his
Republican Party. Rather, political corruption became a cultural
norm as Radical Republicans plundered the South with carpetbag-
gers and federal troops. In 1867 a New York weekly asserted:
“men now go into politics as a rapid mode of making a fortune,
and brag of their gains by the sale of their votes without shame or
hesitation.” The same issue explained:
The great difficulty in the way of reform is the difficulty of getting

the public to believe the facts. The press, as well as orators, have
indulged so much in exaggeration of language, that, now that the
wolf is really here, nobody believes them. Every rascal has so
constantly been the greatest of rascals; every fraud the most
gigantic of frauds; so many politicians have been thieves of the
deepest dye, and so many judges corrupt politicians, that there are
no epithets left to describe the real villains and villainies which
are now at last under our noses.
America was on the fast track to the Gilded Age.
Many non-elite in the city and out weren't dragged along for the
ride. They were pressing ahead in self-congratulatory imitation of
urban sophistication. Social rank according to this ‘good society’
was determined not by background or intelligence but by income
and lifestyle. Manual labor was simply disreputable. In this
middle subculture, potential brides not motivated by riches
preferred idle stock gamblers and lowly clerks. They shunned
higher paid bricklayers and carpenters knowing that their peers
certainly would irrespective of marriage ties. American women
also avoided physical exercise for themselves, apparently
contributing to a national decline in women's health and fertility.
Despite job market demands, many skilled laborers wanted a
learned profession for their children. The prevailing fashion was
tagged by a mantric formula with allowance for an expediently
chosen second clause. Two variants were: “Every man for
himself, and the devil take the hindmost.” and “Every man for
himself, and the strongest fend off.” A first generation grew up in
moderate, widespread affluence—and couldn't appreciate it.
In contrast to social norms the ‘working men’ of the middle
class were acting in concert as never before. Union creation and
striking were unusually frenetic, a characteristic of the 1860s in
general. The eight-hour movement started in the mid-sixties had
become a viable political issue by 1867. Trades workers leveraged
their organizations politically as well as professionally, applying
voter cells strictly according to a narrow labor agenda. Unprece-
dented activity on the national level was intended to forge a perva-
sive solidarity under a federation of national unions to include
blacks and women. A similar phenomenon of progressive labor
activism was occurring in Europe. The recently formed Interna-
tional Workingmen's Association was coordinating strike capacity
with an innovative, resolute professionalism across 150,000
members and the countries of England, France, Belgium, Switzer-

land, and Italy. The platform of that First International was written
by Karl Marx.
The need for greater organizational complexity and the obsta-
cles to achieving it derived from forces of competition. Technolo-
gies like the telegraph and train escalated the sway that well-
administered capital could command. Monopolistic schemes like
business pools and trusts were not far away. Advancing automa-
tion discharged tradesmen to the ranks of the unskilled horde.
Blacklisting, law enforcement, and detective agencies deterred
unionism violent or otherwise. Labor naturally struggled with
labor as well. Local unions of the trades resisted expanding local
union membership and the use of apprenticeships. Capital framed
the struggle as ‘Social Darwinism’, as if survival resources
commercialized into commodities were a civilizational luxury.
Labor fought an uphill battle. Nothing short of massive, steadfast
unity would shake the plutocracy. Remorseless exploitation of the
labor pool by the Robber Barons gave forlorn hirelings the desper-
ation to do it.
Infrequent or delayed pay was neither unusual nor creative.
Certain companies, most notably mining companies, paid workers
in scrip. The scrip could be redeemed only as provided by the
issuing employer. Limited selection and inferior goods allowed
capitalists to recycle wages. Payment in company products, for
example cigars and clocks, was another way to discount labor.
Localized poor were not in a position to escape the going rent,
whether administered by the employer or another capitalist. All
these practices went back several decades and would continue
several more. Many industrial jobs caused illness, mutilation, and
death, without cost or concern to the business owners. Distant
executives paid the rank and file according to market value, not
commercial value—still a remuneration entirely too high in some
minds. Markets, after all, don't manipulate themselves.
Railroads were the symbol and backbone of the postwar pros-
perity—and extravagance. Between 1868 and 1873 the U.S.
Government granted 155 million acres and loaned $500 million for
main line construction in the West. Fraudulent billing of the
national enterprise benefited an opportunistic elite. In 1872 came
the Crédit Mobilier scandal involving the Union Pacific Railroad,
pronounced political aversion to railroad subsidies, and lower crop
prices due to a bountiful harvest. Western farmers politically chal-
lenged freight rates via the Grange Movement. It is worth noting

that in 1871 the fantastic government corruption of Tammany
Hall's Tweed ring began making news that would continue for
years.
In early September of 1873, a New York bank failed. Another
failed on the 11th. On 18 September, Jay Cooke & Co., the fore-
most bank in the United States, stressed by cash advances to the
Northern Pacific Railroad, closed its doors. A cordon of
policemen held back a mob of depositors. The panic of 1873 was
on. Excess and speculation had necessitated a severe depression
that would last until 1879. Cornelius ‘The Commodore’ Vander-
bilt of the New York Central Railroad remarked, “building rail-
roads from nowhere to nowhere at the expense of the public is not
in the best interests of the industry.” Perhaps he felt left out.
As always with depressions, labor unions languished. In this
economic environment, executives of the largest eastern railroads
agreed to a pooling arrangement. Each company was assured a
prearranged take of business such that imbalances would indefi-
nitely accrue to the lagging parties until redeemed. Related ship-
ping rates were raised immediately. As a bonus came the power to
hold out against and crush any strike directed at only one member.
One by one in 1877, during the depths of the depression, while
paying a healthy dividend to stockholders, each railroad lowered
already distressful pay by 10 percent in turn.
On 16 July, the 10 percent cut on the Baltimore and Ohio Rail-
road triggered a strike as usual as ever. Disgruntled workers had
no bargaining power without stopping trains. The police at Balti-
more met little resistance and did not let that happen. In Martins-
burg, West Virginia, the miners were little resisted by the police.
State militia were called by the Governor. A striker holding a
turned railroad switch was mortally wounded while expressing his
argument to a soldier by pistol. Afterward, no one could be found
to run trains. The colonel in charge, from a politically influential
family, had not given an order to fire, was expediently satisfied
nothing barred the trains, and left with his troops. Many soldiers,
besides having local ties, belonged to the poor, laboring class.
Deployment of State troops was therefore complicated. (Impover-
ished railroaders of the South being predominantly black did not
inspire the same complication.) Train executives naturally
preferred U.S. troops and soon urged State governors to get them.
It was reputed that president of the Pennsylvania Railroad Thomas
A. Scott suggested, “Give them the rifle diet for a few days and
see how they like that kind of bread.” Nevertheless, President
Hayes would use U.S. troops sparingly and with restraint.
The success of the strike in Martinsburg held up hundreds of
freight trains. In a few days the contagion followed the tracks
northwest to Cumberland, Maryland where labor was adamant
about stopping freight trains and as far as Newark, Ohio where
disgruntled B. & O. railroaders quietly idled. Railroaders were
joined by boatmen, coal miners, and the poor at large. In Pitts-
burgh, one man and then one crew refused to take out one train
because of one more irksome mandate, precipitating acrimony of
the industrial poor as fire and blood. The Pennsylvania Railroad,
losing over 100 locomotives, would win in 1880 from the Govern-
ment of Allegheny County, the county containing Pittsburgh,
roughly $1,400,000 plus interest for damages. Representatives of
railroad and county would fail to pass a Railroads Riots Act that
promised a bigger settlement from the State legislature. The
Reading Railroad would oppose the lobbying efforts and even hire
Pinkerton agents in doing so. County taxes would increase. The
Pennsylvania would also fend off liability for losses of freight.
Railroad agents in Pittsburgh were suspected of pushing into the
fires a number of freight cars, the soon-should-be-retired kind.
Baltimore, Reading (PA), and Chicago became other battlegrounds
of class struggle.
The Great Strike of 1877, the first and greatest general strike in
U.S. history, spread mainly in the North from city to city across
two July weeks with labor assemblies, mobs, police companies,
troops, shootings, beatings, and millions in property damage.
(However, the deaths of perhaps one or two hundred do not
compare to the New York Draft Riots.) The 1877 strike wasn't
entirely about railroads. Nor was is simply about pay cuts
common everywhere. It was about the plutocracy of capital
commanding an array of clergy, police, mayors, judges, and gover-
nors; and striving for no less than the U.S. presidency. It was
about employees of the Erie lately charged rent on the company
land that held the shacks and vegetable gardens they maintained.
It was about gangs of adolescent boys and bands of migrating
tramps. It was about boys as young as seven in eastern Pennsyl-
vania working long hours and abbreviated lives as slate-pickers in
dusty, crowded enclosures, subject to the whip and club of the

chute boss. The strike finally fizzled but public perceptions,
detached and apathetic, had been challenged.
The perception of labor by labor itself was as important as any.
Under compulsion the working class had retaliated in unity.
Meanwhile, the Knights of Labor were busy organizing that unity
to become the first of the two great American labor federations of
the 19th century. The Knights started as a group of garmentcutters
in Philadelphia. These tailors were seeking a progressive labor
association designed with past failures in mind. Not the least of
which was the character of many in the Garmentcutters' Associa-
tion of Philadelphia to which they had belonged. This association
had formed in the fall of 1862 to oppose falling wages. The group
enjoyed success and influence, but by 1869 it languished. One
Uriah S. Stephens complained, “There is more discussion in the
cutting-rooms the day after a meeting than there is at any of the
meetings.” The association officially disbanded 9 December 1869,
and a shrewd faction formed the Knights of Labor.
Initially, the Knights were a very exclusive, hardly progressive
trade union. However, a thoughtful leadership had other ideas and
they would develop into an enlightened Knighthood based on
character. In 1870 the exclusivity by trade was breached with the
transitional membership of the sojourner. Sojourners were gath-
ered and prepared for the establishment of new autonomous
groups particular to different occupations. The secretive, instruc-
tional society spread. After years of decentralized growth, a move-
ment to develop into a consolidated public organization began in
1875. The Great Strike took place as the district assemblies were
gathering their political strength. About six months later, the
seminal General Assembly convened 3 January 1878 in Reading,
Pennsylvania—a conciliatory ground between leading rivals of
Philadelphia and Pittsburgh.
Allan Pinkerton had something to say about the labor movement
in Strikers, Communists, Tramps and Detectives (1878). The
primary reason he gave for writing the book about the sympathetic
strikes of 1877 was so it ‘shall ever stand as a warning and preven-
tion of their recurrence.’ From his declared niche in life as a
working man, he explained many social ills. The tramps enamored
by the joys of tramping in the grandeur of nature typically became
corrupt vagabonds. About International organizations, Pinkerton
wrote, “If its members did not actually inaugurate the strikes, the
strikes were the direct result of the communistic spirit spread

through the ranks of railroad employees by communistic leaders
and their teachings.” Regarding the Knights of Labor, he
commented, “It is probably an amalgamation of the Mollie
Maguires and the Commune.”
The Mollie (or Molly) Maguires were a lawless and secretive
order of labor-class Irish-Catholics controlling much of society in
the anthracitic mining regions of Pennsylvania from 1862 to 1875.
During this time Mollies threatened, beat, and murdered mining
bosses and superintendents to improve work-related circumstances
for their members, or to otherwise exercise Molly authority. They
also manipulated local elections, controlled township offices and
funds, influenced county officials, and auctioned township votes of
State and national elections. The weight of real estate taxes and
lawlessness caused independent mining operators to sell out to
great coal mining and transporting companies. The resulting
monopoly, though a potential danger in unscrupulous hands, was
doubtless the only means by which the ‘Satanic power’ of Mollies
could be broken. “Tweed in his palmiest day was never more arro-
gant nor half so unscrupulous.”
The Philadelphia & Reading Railroad Company's president
Franklin B. Gowen, Esq. authored their undoing when in 1873 he
directed his company to form a subsidiary mining company and
hire the Pinkerton Detective Agency. The Reading Company's
control of coal freight was in jeopardy as other railroad lines
extended into the mining regions. The purpose of the new
Philadelphia & Reading Coal and Iron Company was to acquire
mines and guarantee coal freight. Other great corporations did the
same until virtually all of the largest body of anthracite coal in the
world was controlled by no one else.
The Pinkerton Agency assigned to Gowen's concerns twenty-
nine-year-old agent James McParlan, an immigrant from Scotland
and a Roman Catholic. As James McKenna, McParlan was initi-
ated as a full-fledged Molly on 14 April 1874. Eventually, McPar-
lan's true identity was rumored generally and asserted by Catholic
priests in particular. Naturally, these priests then also knew of the
Molly Maguires. One of them, Father O'Connor was known to
denounced the Molly Maguires from the pulpit. Shortly before
McParlan thereby retired his undercover role of two years,
O'Connor had sermonized from a pastoral letter of Archbishop
Wood that excommunicated all lawless societies, especially the

Molly Maguires. Nevertheless, Father O'Connor regarded
McParlan as a stool-pigeon who expediently participated in crime.
The prosecution of the Molly Maguires was predominated by
the eloquent Gowen as one of the attorneys and McParlan as a
leading witness. Local attorney Francis P. Dewees wrote, “as to
them there ‘dare’ be no thought of mercy,” in Molly Maguires:
The Origin, Growth, and Character of the Organization (1877)
before due process swung the first Molly by the neck. Twenty
hangings occurred over the three years 1877–1879, though some
accounts have only the first nineteen. A final execution in
Sunbury, Northumberland County was performed nearly nine
months after the flurry of nineteen hangings in Pottsville,
Schuylkill County, in Mauch Chunk, Carbon County, and in
Bloomsburg, Columbia County. That is the popular version of
Molly Maguire history. Contradictory versions of history are
worth considering.
One is given by the Grand Master Workman (chief executive) of
the Knights of Labor from 1879 to 1893. This was a man who in
his earlier days of labor activism had his employment opportuni-
ties ruined by circulating blacklists. As a result he often went
hungry. Terence V. Powderly in his Thirty Years of Labor, 1859–
1889 (1890) paints a different picture of Molly Maguireism.3
Miners had answered the cruelties of the monopolists' labor bosses
with murder on encounters made opportune because of drunken-
ness. Evening bartenders, not welcomed in the Knights' Order,
belonged to societies of workingmen, so workingmen routinely
indulged in saloons. The dispatched Pinkerton detective had infil-
trated the Knights' assembly in Schuylkill County and encouraged
desperate deeds. During the trials of alleged Molly Maguires, the
press, pulpit, politicians, and merchants never criticized the bosses
of the anthracitic coal regions.
3 The citation with full title is: T. V. Powderly, Thirty Years of Labor 1859 to
1889, in Which the History of the Attempts to Form Organizations of Work-
ingmen for the Discussion of Political, Social and Economic Questions is
Traced. The National Labor Union of 1866, The Industrial Brotherhood of
1874, and The Order of the Knights of Labor of America and the World.
The Chief and Most Important Principles in the Preamble of the Knights of
Labor Discussed and Explained, with Views of the Author on Land, Labor
and Transportation., revised and corrected ed. (Philadelphia: 1890). The
citation is of the second edition. The first edition was first published in
1889, and a slightly smaller sized impression of the same was first
published in 1890.
In early 1878 the nationalizing society fully named the Noble

and Holy Knights of Labor of North America was integrating the
assembly of Schuylkill County. On the grounds that any secret
group was presumed to be or be like the Molly Maguires,
Powderly observed, “It became necessary to allow the name of the
Order to become known.” Soon after, an unnamed priest in
Schuykill County denounced the secret society from the alter.
Whatever the specific condemnations were at the time of consoli-
dation, the result was a defection of local members and the
convening of a special General Assembly to address the problem.
The process to take the Order public began in earnest with that
two-day meeting in May, received sanction in September 1881,
and completed the following New Year's Day. At issue was not
simply public proclamation but also expunction of scriptural usage
and other lately disagreeable features. The use of ‘Noble and
Holy’ was dropped from the name, at least publicly.
Before the Molly Maguireism, the 8 March 1873 issue of the
New-York Times described a different situation in the anthracite
regions of Pennsylvania. A corrupt, oppressive, and unjust coal
ring of commission merchants or ‘middlemen’ plundered an
industry of great national importance. Under their yoke, the luck-
less and insolvent operators endured the striking, insubordination,
and violence of distressed miners. To abolish the ring stifling
healthy competition, ruling fountains of justice, and imposing a
commission of 25 cents per ton, Mr. Gowen was organizing mine
operators for his system exacting only a commission of 15 cents
per ton.
It was rather the case that after the Civil War overproduction
was the problem for operators, a problem that Gowen encouraged
when expedient.. His vision was a massive, efficient distribution
of cheap anthracite. The judicatory maneuvering gave him the
kingdom to house it. Franklin B. Gowen had garnered national
public support and local subjugation to the Reading. That subju-
gation was enforced by the Reading's private but commissioned
police force. A Pennsylvania law of 1865 gave railway capitalists
the opportunity to commission with the Governor's assent a private
police force. These would logically be the very kind of railroad
agents rumored to have burned old cars for the Pennsylvania Rail-
road in 1877. The Pennsylvania law was extended in 1866 to
include the now infamous Coal and Iron Police. Under this law
and order, striking and unionized workers were guilty of
‘conspiracy’ and abused accordingly. The costs of legal proceed-

ings related to the private henchmen were obliged to the State
Government. The rule of the coal estates was comparable to the
landlordism of Ireland. A last resort of violence might become
inevitable under those conditions notwithstanding the battle of
public perception or advocacy of high-minded principles.
During the Knights' preeminence from 1878 to 1886 important
social and political strides were made. In 1881 when secrecy was
resigned, the Knights opened membership to women and without
qualification. One clergyman sermonized disparagingly, “Once we
had Molly Maguires; now we have Biddy Maguires.” Not later
than 1885 many blacks had joined the Order. In October 1886, a
black man was maintained as a coequal delegate to the General
Assembly held in Richmond, Virginia despite antagonistic expres-
sions of Southern hospitality. By prepared statement in response
to the ordeal, Powderly warned, “With so many able-bodied
colored men in the South who do not know enough to ask for
living wages, it is not hard to guess that while this race continues
to increase in numbers and ignorance prosperity will not even
knock at the door, much less enter the home of the Southern
laborer; and that country which has an abundance of ill-fed, ill-
bred laborers is not, nor cannot be, a prosperous one.”
The Knights of Labor held one prominent, resolute discrimina-
tion denoted by impersonal trait. In 1888 the General Assembly
prohibited from membership the Chinese, then in the New World
synonymous with the Empire's indigent coolie class. Coolies were
the lowest and laboring class of Eastern countries, most notably
India and China. The worldwide expansion of Western capitalism
and the deterioration of the Atlantic slave trade conspired to make
a trade of them. Western powers chose China as the premier
supplier of coolie labor due to an economic, political, cultural, and
populous constitution that made China ideal. The interplay of
circumstances is hard to comprehend without an appreciation of
China's journey through world history to that point.
The discovery of metallurgy powered the transition of Eurasian
and North African civilizations from the Stone Age to the Bronze
and Iron Ages. Smelting technology likely started in the Caucasus
Mountains or nearby mountains to the south in the Middle East
circa 4000 B.C. Regardless of the exact locale, the discovery of
smelting was positioned to admit ancient China. Iron is far more
plentiful than copper, but iron also differs by a crucial sensitivity
to carbon content. If the iron did not melt in the forge, stubbornly
it was wrought iron. Wrought iron has low carbon content and is
relatively soft. Initially, the ancient smiths would have created a
wrought iron so soft that it was inferior to bronze, the alloy of
copper and tin. Greater carbon content through patient forging is
necessary to turn tough but malleable wrought iron into hard steel.
Melting iron in the forge would dramatically increase the carbon
content and result in hard but brittle cast iron that does not shape
by hammering at any temperature—unless splashing molten iron is
your thing. Steel requires a very precise control of carbon content
that some ancient people were able to achieve. The swords of
Damascus were of a quality that is an achievement even by today's
standards. The raw material was wootz steel imported from India.
The renowned Japanese swords would not appear until roughly the
13th century. Steel was used to military advantage by the Spartans
and Romans. Developing a technology to make iron useful was
difficult and involved an element of chance. Some smiths created
a thin steel exterior on what was carburized or case-hardened iron,
not true steel. The Chinese specialized in cast iron early in their
adoption of iron technology, sometime between 600 B.C. and 100
B.C., whereas the remainder of the ancient world generally favored
wrought iron over cast iron. In eastern or southern Asia was
invented a system of dual-piston-driven bellows that generated a
continuous stream of air and high forge temperatures. The
Chinese had a method of making steel by 200 A.D.
Other Chinese innovations like the breast harness, water-
powered mills and the building of roads and canals accumulated
until in Tang (or T'ang) times (618–907 A.D.) the material and
technological richness of China was the world's foremost. A late
Tang innovation portended further progressiveness that was
restrained by political fragmentation and northern strife over the
period of the Five Dynasties (907–960). Later that innovation,
with some others to be mentioned shortly, would symbolized a lost
opportunity having come antagonistically full circle. Gunpowder
was both invented by Daoist- (or Taoist-) inspired researchers and
used for military purposes at the beginning of the 10th century.
The first mention of gunpowder in the West was by Roger Bacon
in 1267.
Chinese Governments used copper for coins and often forbid its
use otherwise. Porcelain supplanted copper and bronze as a domi-
nant staple of household items. Still, a chronic shortage of copper
coins remained and a tremendous paradigm shift was inspired.

Paper money was invented in stages during the ninth and early
tenth centuries and widely circulating in the eleventh to fourteenth
centuries. Naturally, banking evolved in concert. The Chinese
developed important sailing technology that for example could sail
nearly into the wind. It was Daoist alchemy that enabled invention
of the compass used by Chinese sailors not later than 1100. Begin-
ning with the dichotomous Song (or Sung) dynasty—the Northern
Song reigned 970–1127 from Kaifeng and the Southern Song
reigned 1127–1279 from Hangchow—China was the world's most
advanced civilization, richest economy, and greatest maritime
power. The naval supremacy lasted four and a half centuries,
culminating with expansion early in the Ming dynasty (reigned
1368–1644) whereby exaction of tribute from foreign kingdoms
reached to Africa. Why China did not embark on the industrial
revolution is a conundrum of world history.
China's opportunity was suddenly dismissed when a federation
of nomadic northern tribes united early in the 13th century. Fifty-
one-year-old Temuchin was elected Grand Khan in 1206, but his
followers already called him Chingis (or Genghis) Khan, meaning
universal chief. Before his death in 1227 he ruled from the
Caspian Sea to the Sea of Japan. To Chingis, the greatest joy to be
had in life was killing one's enemies, seizing their horses and
cattle, and ravishing their women. The world's two greatest civi-
lizations, China and the Islamic Middle East, declined under the
Mongols' rule. Europe was better than relatively unscathed.
Muslims had been imparting august knowledge from China and
now so would Mongols. After China fell, the Yuan (or Yüan)
dynasty (1264–1368) began under Chingis Khan's grandson
Kubilai (or Kublai) Khan. The Mongols instituted a caste system
to keep the more numerous Chinese subservient. As a result,
foreigners and the least thoroughly ‘Chinese’ subjects were
required to administer the sophisticated nation.
Deemed preferable subjects but still largely relegated to the low
Chinese class were the descendants of other northern tribes from
the conquered Chin empire. Chin was founded at the expense of
Northern China and Laio. Laio was an earlier empire founded by
tribal northerners at the expense of Northern China. The Mongols
were the third and climactic wave of northern hostilities afflicting
the Song realm. The Song made rueful alliances with the two
subsequent invaders as the northern enemy of a northern enemy.
The Mongolian regime engaged erudite Muslims to handle finan-

cial affairs. Kubilai's request for 100 learned men from the Pope
failed to garner even the 2 that were sent out. Instead the Polo
brothers, two Venetian merchants, returned to Kubilai's court with
their teenage son and nephew Marco Polo. Marco Polo had some
role in China's administration that had him trekking across Asia
and recording anecdotes for the Yuan Emperor. Later in a Genoese
jail and in his forties, Polo dictated to Rustichello of Pisa the
makings of their famous book, and this very story of adventure. A
story that was often discredited and imitated but never duplicated.
The original text is lost to the ages; only conflicting derivatives
remain. Europeans did not believe his accounts of the dwarfing
scale of commerce, paper money, or combustible black rocks.
Nevertheless, their adoption of Chinese methods was at hand. The
Moor's Arabic numerals adapted from an Indian variant—but more
importantly the incomparable numeric design—were slowly
gaining acceptance. It seems the Arabs also infused their associa-
tion of Negroids with the Curse of Ham. Across Europe finally,
during the 14th and 15th centuries, the Middle Ages gave way to
the Renaissance. In Iberia, Moorish rule finally capitulated before
a Catholicism of growing prowess. With the Ottoman Turks
looming on Europe's eastern horizon that prowess became fanat-
ical and seminal.
With an adoptive technology of shipbuilding and navigation and
weaponry, Iberian Catholics sough to vanquish once and for all the
Muslim bane for both spiritual and material enrichment. One
kingdom among them had a free and idle hand to flank seaward
first. King João (John) had dismissed a last Iberian challenge to
Portuguese sovereignty by thwarting a 1385 invasion of the
Kingdom of Castilla (Castile). Only in 1411 did João finally make
peace with Portugal's only adjoining neighbor. It was the
Portuguese who initiated the European policy of exploratory
mercantile and colonial expansionism—and eventually, concurrent
with other Iberians, the globalization that has yet to end. In 1418
King João made his son Henry the Grand Master of the Order of
Christ, and master of the associated war chest. By that year Prince
Henry ‘the Navigator’ was sending ships to grope and exploit the
West African coast. His innovative ships, the ultramodern
caravels, were small, rounded, unusually seaworthy, and pleasantly
inexpensive. They bore the Order's distinctive red crosses on their
white canvas sails. A trade of sorts was developed in the 1440s
with the West African coast south of Cape Bojador. By 1454

Castilla was an irksome and imitative rival. On 8 January 1455
Pope Nicholas V issued the papal bull Romanus Pontifex. The
decree made exclusive the rights Nicholas had previously granted
Portugal to enslave, conquer, and trade at reaches on the way to
India.
A marriage in 1469 between Princess Isabella and Prince Ferdi-
nand politically united two Iberian kingdoms. Spain itself was not
consummated even tentatively until in 1479 Ferdinand ascended to
the Aragonese throne as Isabella had the Castilian. The year 1492
was historic for young Spain. The last Moorish enclave in Iberia
was Granada the kingdom in the south. Spain fell its Islamic
neighbor on 2 January, when the keys to Granada the city were
formally transferred. The Moor invasion begun in 711 had ended.
In contrast the Portuguese had defeated their last immediate
Islamic adversary Algarve in 1249. Spain was ousting Jews on 3
August 1492 as the Santa María, Niña, and Pinta set sail from
Palos without conveying a one. Genoese navigator Christopher
Columbus (the Anglicisation of the Latinization of Cristoforo
Colombo) led the Spanish west and earnestly identified ‘Indians’
on 12 October. Incidentally, Columbus had seen the Spanish
monarchs receive the keys to Granada because he was urging their
sponsorship of that very sailing venture. Pope Alexander VI
issued two bulls dated 3 May 1493 giving Spain (technically
Castilla, León, Aragón, and Granada) exclusive rights to lands
westward across the Atlantic equivalent to Portuguese rights in
lands along the circumnavigation of Africa. Pope Alexander's
Inter Caetera dated 4 May 1493 instituted a longitudinal demarca-
tion of the earth, that is from pole to pole, positioned 100 leagues
west (and south, somehow) of any (ambiguous) island of the
Azores and Cape Verde. The Azores are located about 900 miles
west of Iberia. The Cape Verde Islands are not far west of Africa's
northeastern bulge. All lands without Christian rule as of
Christmas 1492 and west of that line were reserved to Spanish
prerogative, subject to the charge of spreading the faith. Chris-
tendom had effectively partitioned the infidelic world for the righ-
teous purposes of Portugal and Spain. The Reformation that
would shake Christendom awaited in the next century. The Treaty
of Tordesillas between Spain and Portugal, signed and ratified in
1494, permitted Portugal an adjustment of the dividing line to a
meridian 370 leagues west of the Cape Verde Islands. Under the
command of Vasco da Gama, the Portuguese established a trade

route to India, and intermediate hostilities, with a round-trip
voyage taken 1497–1499. More men died on the first European
voyage to India than lived. Gama's novelty of sailing southwest
and then southeast across the whole Atlantic from Sierra Leone to
the tip of Africa with the prevailing winds became the standard.
The discovery of Brazil in 1500 by Portugal's Padro Álvares
Cabral would naturally follow. Behold, Brazil was east of the
Tordesillas line!
A frank sketch of slavery at this point in history is significant
for more than history's sake. Such knowledge empowers one to
discredit the manipulative bugaboos dubbed slavery and
dismember the genuine threats. Slavery does not exist without the
telltale extractive manipulation. Slavery is generic and adaptive.
If that is not thoughtcrime enough, flying in the face of today's
subversive suc-Western academia, I will dare to use rough but
meaningful classifications of race. Caucasoid, Negroid, and
Mongoloid are the usual suspects. I will distinguish one more.
The ‘Amerind-oids’ who had solely peopled the New World (give
or take a Viking) were related to the Mongoloids who had peopled
eastern Asia by virtue of a former isthmus spanning the Bering
Strait. That land bridge is now under water. Caucasoids peopled
Europe, North Africa, and portions of northern, western, and
southern Asia. Asian is not a fitting substitute for Oriental unless
Russians were Oriental too. Negroids peopled sub-Saharan Africa.
The society that built the Egyptian pyramids was a white society,
Al.
Slavery is evidently typical of human civilization from time
immemorial to the present and was practiced by all four aforemen-
tioned races in the 15th century. Caucasoid Christians enslaved
Caucasoid Muslims and Negroid Africans. Negroid Africans
enslaved Negroid Africans and Caucasoids. Negroid Africans
sacrificed and ate Negroid Africans. Caucasoid Muslims enslaved
Caucasoid Christians and Negroid Africans. Orderly China had no
need nor want of a substantial slave system, but Chinese enslaved
Chinese. It is relevant to note that at the very least the delights of
culinary cannibalism were not foreign to Chinese tradition by this
time, but consider the neighborhood. Indications are that canni-
balism was being practiced by hundreds of different primitive
peoples from sub-Saharan Africa to the Malay Archipelago to
Oceania. Excepting China, slavery in Southeast Asia was yet

again the convention: Mongoloids enslaved Mongoloids and what-
ever races were imported via Madagascar and East Africa.
Amerindoids enslaved Amerindoids from the American South-
east to western Canada. The Mesoamerican Aztecs had slavery
but war captives usually did not experience it long. This form of
manumission might come with a dinner engagement. In 1487 four
lines of living human flesh radiated from the great temple of the
Aztec capital Tenochtitlán outward onto the four causeways
connecting the magnificent lake-protected city with the shore.
Dedication of the new temple, complete with two towers made of
lime and skull, involved the rapid and repetitive extraction upon its
heights of 10,000 or more hearts by obsidian knife over a four-day
period. The total offering throughout the metropolitan area was
perhaps 20,000 people. Human game was a welcome protein
source for the well-to-do. Cortés would raze the Aztec capital and
temple in 1521, hewing the foundation for Mexico City and
Spanish rule. The Tupinamba of coastal Brazil were ritual canni-
bals of war prisoners too. Early in the 16th century a shipwrecked
German sailor would witness their communal feasts: nursing
mothers even smeared the victim’s warm blood on their nipples.
Caribs (a tribespeople of the Caribbean) reputedly cooked in pots
and ate the flesh of the men they captured. Captured boys were
castrated, enslaved, and eaten later when full-grown. Such
accounts of Carib cannibalism have divided scholars, and there are
shortcomings in the evidence, but the physician Diego Alvarez
Chanca, for example, could only have lied outright to not have
encountered three castrated boys fleeing to him and his compatri-
ots. Caribbean females were objects of rape, for Spanish sailors as
well.
Eunuchism was undoubtedly a prominent feature of slavery in
the Old World, but prominent without the cannibalism. The tradi-
tion had been handed down by a swath of ancient civilizations
from China in the East to the Hellenic world in the West. Eunuchs
were typically enslaved though many such servants of the Chinese
imperial court had voluntarily made the career move. The Islamic
Ottomans owned Caucasian eunuchs as had the Christian Byzan-
tines they conquered. About 1 in 10 might survive the ‘surgery’. I
say might because, besides the variations over enterprises that we
can only imagine, sometimes as with Africans and Chinese
harvested for the Ottoman Empire the whole enchilada was
removed. Beginning in the 1550s or so, the Roman Catholic

Church would feature the incomparable castrati for the perfor-
mance of their hymnal music. Castrati accommodated the require-
ment ascribed to First Corinthians 14:34–35 that women in church
should be seen and not heard. Castrati had invigorated and left
opera by 1830, but for church services they sung as late as the
1920s. In the 18th century Muhammad ibn ‛Abd-al-Wahhāb advo-
cated a strictly traditional orthodoxy and disparaged extrinsic inno-
vations, primarily tomb-centered cults and petitions to the dead for
intercession. Eunuch custodianship of the Prophet Muhammad's
tomb in Medina originated with the Mamluks, probably in the 12th
century, and the practice arguably infers a mystique inconsistent
with genuine Islam. The role of eunuchs at the Kaaba in Mecca
seems to have originated similarly but specifics are lacking.
Despite the Wahhabism of the Saudi royal family, some traditional
presence of eunuchs in Mecca and Medina is known to have been
as late as 1990, owing in no small part to political hazard.
In reference to the 15th-century storyline, the Europeans were
about to efficiently aggrandize slavery using the Atlantic slave
trade. In the 18th century the Christian world would experience
the Enlightenment and sour on the inhumane institution quite
human. The social value antislavery would so be born; but into
the 20th century Korea would feign abolition, and the Islamic
world would openly dissent. The similarity in the past condoning
of slavery by Judaism, notably in the 9th and 10th centuries, and
by Christianity and Islam is not surprising given the overlap of
theological genealogy from Adam to Abraham to Moses to Jesus.
This sketch of slavery demonstrates how cruel the world is without
humanistic intellectualism. Basically, humankind of the 15th
century was adaptively savage as it had always been and always
can be. Now go look up the word dulosis and take slavery off
your parochial, one-dimensional pedestal!
As European governments pursued distant socioeconomic fron-
tiers, the Ming dynasty sought rigid socioeconomic control and
stability. Hyperinflation under the Southern Song and Yuan dynas-
ties had taught the Chinese an aversion to paper money that the
Ming dynasty could not overcome. The shortage of copper coins
and the failure of paper money relinquished the standard medium
of exchange to the tael or ounce of silver, mintage not required. A
xenophobic isolationism characterized foreign policy. Legal trade
was curtailed, tribute mechanisms were circumscribed, and private
dealings with foreigners were prohibited. The military establish-

ment stagnated, smuggling and piracy expanded, and the poor
became drastically poorer. National policy, but more profoundly
the orthodox essence of China itself, was stress hardening. That
essence was the mystique of Confucius.
Confucius (551–479 B.C.) himself worked from a traditional
philosophy established early during the Zhou (Chou) dynasty
(1122?–256 B.C.). The philosophy was called the Mandate of
Heaven and combined cosmology and politics. Heaven (of this
Universe) was all-powerful, suitable for worship, but impersonal.
The Emperor was the ‘Son of Heaven’ given divine charge to rule
his subjects. If any emperor was toppled, it could only be legiti-
mate since it was the will of Heaven. The peace and utter welfare
of the people was the Emperor's awesome responsibility. To
perform his duties, he needed to rely on scholar-officials. Confu-
cius taught disciples but never won an influential voice in govern-
ment to implement his ideas. Posthumously, the ideas of
Confucius were interpreted, reinterpreted, and expounded into the
seemingly organic philosophy Confucianism. During the Han
dynasty (202 B.C.–9 A.D.), Confucianism became an orthodoxy of
the state and five classic texts were canonized as the Five Classics.
Written late in the Zhou period and constituting a mere portion of
one of the five was the essay “Ta-hsüeh” (“The Great Learning”),
itself composed in part by an epitome of Confucianism expressed
with syllogistic chaining:
Growing things have roots and branches, and human affairs have
beginnings and endings. If one knows what should be put first
and what should be put last, then he is near to the Way. The
ancients who wished to shine their bright virtue throughout all
under Heaven first set in order their states. Wishing to set in order
their states, they first regulated their households. Wishing to regu-
late their households, they first cultivated their persons. Wishing
to cultivate their persons, they first rectified their minds. Wishing
to rectify their minds, they first made intentions sincere. Wishing
to make their intentions sincere, they first extended their knowl-
edge. The extension of knowledge lies in the investigation of
things. Things being investigated, then knowledge is perfected.
Knowledge being perfected, then the intentions are made sincere.
The intentions being made sincere, then the mind is rectified. The
mind being rectified, then the person is cultivated. The person
being cultivated, then the household is regulated. The household
being regulated, then the state is set in order. The state being set
in order, then all under Heaven is at peace. From the Son of
Heaven down to the common people it is uniformly so: for all,

cultivating the person is to be considered the root. It is false that
the root can be in disorder and yet the branches can be in good
order. It has never been that what should be emphasized can be
deemphasized and that what should be deemphasized can be
emphasized.
In Song times Confucianism was expanded to directly challenge
and fend off rivals Buddhism and Daoism, particularly for sway
among the scholars so influential to imperial policy. The result
was a contentious reform movement and attendant concepts West-
erners term Neo-Confucianism. Central to the reform was the
novel conceptualization of the Supreme Ultimate as the universal
aggregate of perfect, abstract qualities or principals called li. The
essence or form of all material things was called qi (or ch'i). Li
organizes qi but is generally compromised by doing so. Thus,
people are increasingly vested through cultivation of the self in a
fellowship of mankind, the universe, and enlightenment. Like the
Five Classics before, The Great Learning and another embedded
essay and two additional ancient texts were canonized and collec-
tively became the Four Books. Two irreconcilable schools
emerged to dominate Neo-Confucianism. The contrary systems
trace lineages that merge with the Cheng (or Ch'eng) brothers who
held apparently similar views. The School of Principle taught
one's mind contained qi and was therefore impure. Consequently,
an external standard universally defined human inadequacy and
the rigorous study that alone could assuage it. That this variant of
the Supreme Ultimate had the faculty to sanction a communal
authority was not lost on government officials. Neo-Confucianism
of the School of Principle became the perennial imperial ortho-
doxy for scholars after Song times. The School of the Mind
conversely held one's mind was li integrated perfectly into the
Supreme Ultimate. The universal standard was internal to the
mind. Conventional emphasis on rigorous study and cultivation of
self remained, but authority of the Supreme Ultimate was individu-
alized. The threat to autocracy and proclivity to progress was
inherent. The School of the Mind influenced the westernizing of
19th-century Japan. As analysis and history show, the doctrine of
Confucianism was a social prescription disposed both to enlighten-
ment and servility. The two outcomes are not mutually exclusive.
Given the role other religions of the world have had with slavery
and fellowship, the great flexibility of social prescription derives
from humanity in general rather than any particular belief system.

In Western cogitation, Confucianism might be construed a
profound, deistic, working Socialism with a kowtow centuries
before there was Socialism proper.
From the dawn of the 19th century the Qing (or Ch'ing) dynasty
(1644–1912) of China was declining to a revolutionary end
awaiting in 1912. The longstanding policy of the ‘Middle
Kingdom’ was the prohibition of migration, but the Imperial
Government suffering from corruption and insurgency was too
weak to enforce it. Droves of benighted peasants suffered a
grinding poverty on the jagged edge of subsistence and were
receptive to employment opportunities abroad. Opportunities well
within the reach of junks to the east and south had been taken for
centuries. In 1826 the British East India Company4 recast holdings
into the Straits Settlements on the Malay Peninsula and continued
to encourage emigration. Migrant Chinese already in the lands of
the South China Sea and others direct from China came to partici-
pate in a multinational economy steeped in trade, tin mining, and
agriculture. The better off came as merchants. Others came as
free laborers. A minority came as indebted coolies or sinkhehs.
Neither the British nor Chinese Governments regulated the coolie
trade or employment that resulted. Brokers, agents, and Chinese
secret societies or hoey autonomously ran what they called the ‘pig
trade’. The Chinese pigtail was a token of subservience to the
Manchurian Qing. Chinese laborers generally found Western
governance perplexing, eschewed direct economic ties with Euro-
peans, and gathered under a ‘Kapitan China’. As Westerners
discovered, Kapitans were indispensable where the Chinese settled
illicitly, as in abroad. The author Victor Purcell observed, “But it
must be remembered that in those days if you were a Chinese
leader at all, it had to be a Triad or Tokong leader.” Secret soci-
eties embraced coolies into surrogate families, offered economic
hope, and indulged in exploitation. Administered as escapist vices,
gambling and opium smoking invited a tightening grip. Brothels
thrived amid the selling of young women and children. Officials
of the Straits Settlements were loath to discourage freely prac-
ticing female prostitutes for fear of encouraging the importation of
Hainanese boys. The Chinese had a saying: “Heaven is high, and
the Emperor is far away.”
4 Also known as both the English East India Company and the Honourable
East India Company.
The sun never set on the British Empire, reaching east to India
and west to the Caribbean. Her abolition of slavery in 1838 redi-
rected a demand for servile labor. Almost immediately coolies
from Calcutta were hired by planters of British Guiana. Not long
after abuses developed, but the British Indian Government took
action under pressure of public opinion back home. As a result,
the coolies of India received some timely measure of protection.
The coolies of China did not. The resultant trade substituted the
Eastern concept of debt obligation with the Western concept of
contract obligation. Refuge in Chinese culture was stripped away.
Thus was the contract system derived from the credit-ticket
system. In 1845 the Occidental trade in Chinese coolies began
with a voyage from Amoy to the Isle of Bourbon (now Réunion
Island). The first Chinese coolies to Cuba and Peru set sail in
1847. Île de Bourbon belonged to the French, Cuba was under
Spanish control, and Peru was formerly so.
As the British and U.S. Governments sponsored forceful
suppression of the slave trade along the African coast and in the
Caribbean, unfortunate Chinese were exported from Chinese ports
in substantial numbers until roughly 1866, and from two foreign
settlements on China's coastline until 1874. Females were a
minority traded to nominally improve the well-being of male
coolies and evidently not for organized prostitution. Coolie
markets taking Chinese, besides Cuba and Peru, included Panama,
British Guiana, and Hawaii before U.S. governance. Shippers of
the Chinese coolie trade were at times American, British, French,
and Spanish. After 1851 the Atlantic slave trade was solely
patronized by Spain's final two American possessions: Cuba as the
historic dissident and Puerto Rico as the shadowy sidekick often
overlooked but managing, in ballpark figures, a comparative 6
percent or 800 slaves annually. The distinction between the
largely bygone slave trade and the substituted coolie trade was
merely semantics, geography, and ethnicity. The sufferings of the
coolies were on par with the African slaves they replaced,
including the deaths in transport due to disease, suicide, etc.
Envoys from Great Britain and France at Beijing (Peking)
signed with China on 5 March 1866 a convention to regulate the
contract system but no treaty resulted. Still, China was inspired
and able to impose slightly on the coolie trade. Macáu (or Macao)
under Portuguese control became, according to authoritative
English-speaking voices, the coolie trade's notorious haven. Hong
Kong under the British was surprisingly similar, except the orig-
inal credit-ticket system involving Chinese secret societies also
obtained. Bad press about the coolie trade motivated the
governing bodies of each settlement to save political face with
regulatory changes and deflective accusations. Multinational pres-
sure largely due to the British 1873–1875 marked the end of the
coolie trade at Macáu. The contractual trade was abolished 27
March 1874, and the year-long suspension of ‘free emigration’
begun 1 April 1874 was indefinitely extended not long after. Simi-
larly, the contract emigration from Hong Kong that had been
confined to British destinations in 1870 was suspended to the
British West Indies in 1874. That condition proved to be perma-
nent in accordance with British public opinion. The thoroughly
Occidental contract system reappeared in the 20th century with
British recruitment to the gold mines near Johannesburg, South
Africa 1904–1906. The coolie trade in British Malaysia, regulated
as a contract system since 1877, was terminated 1914–1916. Thus
Chinese contract labor was prohibited from British territory—and
presumably nonexistent in the world—after 1916 until in 1919 it
was permitted in Western Samoa. The small island of Nauru
utilized Chinese contract labor in the early 1920s as well. The last
African slave ship to the New World is thought to have landed at
Cuba in 1867. The final quietuses of unvarnished slavery in the
Americas came to Puerto Rico in 1873, Cuba in 1886, and Brazil
in 1888. Much about the credit-ticket system is ensconced in the
history of free immigration.5
On 24 January 1848 gold was discovered in the western
foothills of the Sierra Nevada, California. Nine days later the
Treaty of Guadalupe Hildago was signed to conclude the Mexican
War, a war initiated with the U.S. offer to annex the 9-year-old
Republic of Texas and concluded with the annexation of nearly all
the U.S. Southwest. The hostilities had grown from a conflict
between failed Mexican democracy and rebellious pro-slavers.
American immigrants formerly welcomed by Mexican land grants,
incidentally predating the U.S. Homestead Acts, were followed by
illegals. The American immigrants in Coahuila y Texas did not
acculturate for reasons to include checks on slavery and violations
5 You may appreciate the following article available online from the U.S.
National Archives and Records Administration: Robert J. Plowman, ‘The
Voyage of the “Coolie” Ship Kate Hooper, October 3, 1857–March 26,
1858,’ Prologue, Vol. 33, No. 2 (Summer 2003).
of representative government. Somehow the Mexicans consis-

tently deemed Antonio López de Santa Anna a better president
than piñata. Conquest of California from Mexico's tenuous hold
precluded British acquisition and preemptively enforced the
Monroe Doctrine. California, perhaps directed by miners and
other whites who valued their own manual labor, declared itself a
free State.
Back east news of war's end received more credence than the
crescendo rumors of gold first generating newspaper coverage in
August 1848. President James Polk dispelled the public suspense
on 5 December 1848 by transmitting to the 30th Congress his
fourth, final, and written annual message. We would call it a
‘State of the Union’ message today. Polk affirmed, “The accounts
of the abundance of gold in that territory are of such an extraordi-
nary character as would scarcely command belief were they not
corroborated by the authentic reports of officers in the public
service, who have visited the mineral district, and derived the facts
which they detail from personal observation.” The same global
wave of excitement was simultaneously surging from New
Zealand to Australia. The worldwide rush began late in 1848 and
arrived in California the next year as 49ers, when for the first time
hundreds of Chinese landed in the United States, at San Francisco.
Three years later the annual number spiked to 18,434. The
Chinese had many good reasons to migrate. China teemed with
412 million people. The comparative populations of the United
States and Europe were 23 million and 154 million, respectively.
Hunger was driving a massive agrarian deforestation. Epic blood-
shed from civil wars—that is several largely concurrent rebellions
—raged from 1850 to 1878 with the standard massacres. The Nien
rebelled. Muslims rebelled. Consolidated around the failed offi-
cial-scholar candidate, precipitate student of an American
missionary, self-proclaimed younger brother of Jesus Christ, and
divine claimant to the Dragon Throne; the infamous Taipings
rebelled best. Pillage appealed to natives and foreigners, rebels
and Imperialists. Famine killed and cannibalism became a viable
survival strategy. An estimated 20 to 30 million people died.
More deaths may be attributable to the movements of refugees and
troops, complementary to that of traders. The world's third and
greatest pandemic of bubonic plague spread from Yunnan Province
across southern China, to Canton and Hong Kong, to India through
Bombay killing millions, to Vietnam, to Japan, and to the distant
port cities San Francisco and Glasgow. The West maintained a

neutrality expanded by British and French forces warring for their
own interests quite impartially. Because the Taipings simply
devastated and did not administer society, Western governments
mindful of trade interests eventually backed the weak Qing
dynasty and the ‘Ever-victorious Army’ assembled and led by
American mercenary Frederick Townsend Ward. Virtual
autonomy of local affairs and indigent throngs were inescapably
fact in China. Far less resolved by scholars, partly due to gross
neglect, is the historical impact of secret societies. To account for
their impact, one must rely more heavily on the circumscribing
details. In spite of that difficulty, though contrary to many ‘author-
ities’ on the Chinese diaspora, a working determination otherwise
would be remiss: The credit-ticket system known in the British
Straits Settlements, a likely Chinese debt-bondage system
concomitant in the Dutch East Indies, and the progenitorial
patterns of Chinese communities in the native states of Indochina
were to be the template for a Chinatown in San Francisco.
Ambitious prostitutes of varied races peddled diversion to the
mining men, but soon, by the mid-50s, the Chinese prostitutes
were mere chattel. The Chinese influx to the States spawned
communities of isolated, autonomous governance unmatched by
all other ethnicities. Insulated by bribery of police, lawyers, court
interpreters, and customs officials, and by the intimidation of
Chinese witnesses, the de facto authority of San Francisco's China-
town was an amalgam of mercantile enterprise, clans, hui kuan,
and secret societies dubbed ‘tongs’. Hui kuan were mutual aid
societies particularized by Chinese dialect, regional subculture,
and ethnicity. Chinese dialects are and were compatible enough
for written communication but not verbal. Coolies were illiterate
or nearly so. The hui kuan of San Francisco were popularly
known as the Chinese Six Companies and accused of trading in
subjugated coolies. The Six Companies, wielding a sizable pool of
Pacific traffic, were able to secure the cooperation of the transpa-
cific steamship companies. That included the Pacific Mail
Steamship Company subsidized by the U.S. Government and from
1866 an importer of Chinese laborers. Coolies could not gain
passage to China without a certificate from one of the Six Compa-
nies proving freedom from debt.
An eastern newspaper reported in April 1871 that an employer

in Greater San Francisco found his several hundred Chinese
laborers worked better for a dollar a day than the men he used to
pay three and a half. A chief of police in San Francisco, admit-
tedly not fond of the Chinese inhabitants, would declare in 1884,
“I do not exaggerate when I say that they can live seventy-five per
cent. less than the white men.” Blacks in California were more
assimilated with and more regarded by whites than were Chinese.
Materially, chances are good coolies were better off in the States
than in China. Whatever were the spoils of Chinatown, they
would be disputed by various factions in ‘tong wars’ starting
around 1880. Something similar could be said of the Irish rough-
necks who competed for the last rung of the economic ladder in
Frisco as in the U.S. Northeast. Chinese labor building the Central
Pacific westward had become inextricable linked with Irish labor
building the Union Pacific eastward in 1869 when the final golden
spike perfected a national labor pool.6 Fortunately for Califor-
nians, Chinatown's hostilities would always be internally directed
and never challenge American sovereignty. Accounts of the
Chinese labor migration to the New World have often described a
dichotomy between free Chinese emigration and the coolie trade:
emigrants went to California and Australia from Hong Kong;
coolies went to Cuba and Peru from Macáu. Chinese coolies did
not experience, much less comprehend, American freedoms simply
because they were in America. Not only were the Chinese disin-
clined to naturalization, they were legally prohibited as well. To
presume San Francisco's Chinatown was functionally American
soil in the 1800s would be naïve. As in Southeast Asia a quarter
century before, subjugation of coolies did not require a positive
policy of the host Western government. That function could be
quietly handled by self-reliant Chinese mechanisms. Though
credit-ticket coolies were a minority of the Chinese arriving in the
British Straits Settlements, they were a majority of Chinese
emigrants arriving in California.
6 Chinese labor and other factors manipulated by plutocracy increased capi-
talization in the form of railroads. Excessive capitalization in railroads
caused the bank failures of 1873 that led to a depression. The poverty—for
capital in railroads is not capital in bread—fueled the Great Strike of 1877
that nearly pitted working-class Americans against the United States
Government. Do you now understand how manipulation and mismanage-
ment of social, economic, and political affairs can reduce real wages below
what sustains mere civility?—unless over 200 TV channels is your surety.
The Chinese rarely westernized readily, but the practice of

tobacco smoking has been a notable example. The habit was intro-
duced indirectly by the Spanish to China circa 1620 via Chinese
traders plying to the Spanish-ruled Philippines. The Dutch
brought to Formosa (Taiwan) from Java their practice of mixing
tobacco with opium and arsenic to ward off malaria. The smoking
of opium alone as unadulterated paste became prominent in China
around 1800. At that time, young men of wealthy families were
the usual consumer, but class and vocation would prove to be no
barriers. The prospect of death within hours of withdrawal would
be no deterrent. If one were to posit a kind of motivating poverty,
personal fulfillment and discretion seem more likely than wealth.
The disturbing trend of opium consumption had not gone unob-
served by Beijing. The first imperial prohibition of opium that
records verify was made in 1729. The decree mainly concerned
coastal trafficking with the notable exception of death by strangu-
lation afforded to operators of opium dens. The next year the
regulations were expanded to target traffickers in Formosa. The
century-old importation of legal medicinal opium—the crude
opium one might swallow raw or decoct into the illicit tobacco and
opium smoke madak—continued to generate duties. The distinc-
tion made between legal and illegal opium was dubious, and
foreigners had assumed no punitive liabilities. The port of Canton
(phonetically transliterated as Guangzhou or Kwangchow) on the
southeast coast of China did the bulk of foreign trade and would
by imperial decree in 1757 become the only legal port, understood
to include use of the neighboring island Whampoa and the nearby
port of Macáu. The two exceptions to the Canton System were the
Portuguese trade wholly at the increasingly Portuguese settlement
Macáu, and the Spanish trade allowed but disused at Amoy, an
island port northward along the coast in the Formosa Strait. Impe-
rial prohibition would long remain focused on the coastal region of
Fujian (or Fukien) Province opposite Formosa and that of Canton's
province Guangdong (or Kwangtung) immediately south. It seems
political exigencies in 1799 spurred the Governor of Guangdong to
prohibit opium imports altogether. His provincial order promul-
gated across Canton's imperial superintendent of trade (the Hoppo)
and the hong merchants, chartered to control seafaring foreigners,
to the foreigners themselves. The result was that by 1800 foreign
opium was habitually smuggled through Macáu and Whampoa,
places for which officials could feign a blind spot, but not Canton.
The three important varieties of opium were Bengal, Malwa,

and Turkey. Bengal opium was named for the region of British
India whence it came and the foremost variety. Malwa opium was
grow in the recalcitrant native states of west-central India, trans-
ported southwest to Portuguese India—specifically the settlements
of Damão (Daman) and Goa that bracketed Bombay on the
western coastline—loaded onto Portuguese ships, and imported at
Macáu for sale to the Chinese. In 1815 the Portuguese were
levying $40 (Spanish) on each imported chest of opium for the
corruption fund used to bribe local Chinese officials. Turkey
opium was shipped by Americans over a distance longer than what
Indian opium required. Although the records of American ship-
ments may be understated, the volume of Turkey opium figures to
have been relatively small.
The ever-consolidating Indian governance the United Company
of Merchants of England Trading to the East Indies took control of
domestic Bengal opium sales in 1773 (for the all-important exports
via Company or licensed private shippers), of the British
brokerage at Canton in 1780 (amenable to ‘private’ sales of
‘private’ Company opium), and of the Bengal opium production
itself in 1797. The British Indian Government has been remem-
bered more commonly as the Honourable (or English) East India
Company. The Company commanded and selectively exercised a
British monopoly of all trade concerning anywhere from the tip of
Africa eastward to the tip of South America, owing to the inceptive
charter made 31 December 1600. It was in the 18th century that
the English, the British Crown, and the Company became preoccu-
pied with tea. The Company found advantage in what was called
the country trade. It was the trade contained within the reaches of
India, the Eastern Archipelago, and China. If the country trade
were understood to refer to a free private trade exclusively open to
incorporated Indians and resident British, the appellation would be
literally sensible. Such a definition would connote that free-
lancing had a place within the purview of the Company's
monopoly, as was definitely the case. The officers of Company
ships were alloted a ‘privilege tonnage’ or cargo space they might
sell at £20–£40 per ton. The captain of an Indiaman enjoyed a
usual 56 or 99 tons, for example. The Company agents at Canton
known as supercargoes not only embodied the Company's sway
there but in certain persons enjoyed the British prerogative of
private brokerage as well.
The private British merchants were not satisfied with

consigning their silver and goods with the Company supercargoes.
A Scotsman devised the legal artifice that would circumvent the
Company's authority. John Reid, formerly commissioned by the
‘Hon'ble Companys Marine Service at Bengal,’ landed at Canton
in 1779 armed with credentials from His Imperial Austrian
Majesty. Reid came as Austria's consul and the chief agent of
Austria's factory (or trading enterprise) at Canton. Private British
goods could now be routed to the hong merchants around the
Company's supercargoes and the rival Portuguese. The Portuguese
would be miffed in 1808 at British occupation of Macáu notwith-
standing the Napoleonic Wars. The Secret and Superintending
Committee as the superintending body of supercargoes at Canton
appealed to the Court of Directors for help in 1793, but the
London management declined to enforce the Company's preroga-
tive with private British merchants. Their services with the
country trade had become indispensable to a burgeoning economic
engine. Beginning in 1733 in response to ‘the late severe laws
enacted by the Emperour of China,’ ships in the service of the
Company were prohibited from carrying opium, with the excep-
tion of two vessels during the wartime year 1782. In that year the
British were succumbing to the combined efforts of France, Spain,
The Netherlands, and a nascent United States of America. The
private merchants were forbidden to export cash profits from
Canton by the Chinese Government and so needed a form of
remittance. The English East India Company needed cash to fund
the vital tea shipments to London. As a result, the Company
issued from Canton bills of exchange redeemable in London or
Bengal. In 1801 the Court of Directors suggested to the Governor-
General of Bengal the increased production of opium to eliminate
bullion exports to China. (It was in the year 1801 that Great
Britain and Ireland formed the United Kingdom.) In 1809 the
Company's supercargoes were forbidden to handle opium. The
Company required a license of all private country ships under its
aegis, including those transporting opium bought at the Company's
public auctions in Calcutta. In 1816 the license was updated with
a clause declaring the license itself void if any opium other than
Company opium were carried. Private merchants had established
a symbiotic niche within the Company by aggressively funding the
tea investment and affording the Company a political veneer.
By the 19th century's 2nd decade the inland spread of illicit

opium dealings in China was manifest. More rigorous measures
were evidently required of Chinese authorities. Penalties against
Chinese users were sanctioned by the Dragon Throne in 1813.
Officials faced the loss of rank in addition to the beating and the
two-month wearing of a wooden cangue around the neck that came
standard. Foreigner merchants had been morally exhorted in 1811
under the directive of Guangdong officials, but in 1815 the Impe-
rial Government threatened expulsion of those caught trafficking
in opium or inculcating Chinese subjects with Christianity. A
crackdown in 1821 on hong merchants drove the illegal trade from
the legal venues to Lintin, an island not far beyond Macáu on the
way to Canton. Eventually, Lintin became so well integrated into
the Canton System that it functionally duplicated Macáu as the
first port of call for legal trade. Smuggling opium at Macáu was
safer than at Whampoa, but the success of Lintin was a critical loss
to Macáu. At some point between 1820 and 1825 the trade-
balance advantage turned from China to the outside world and the
flow of silver reversed. More crackdowns and consequences were
to come. The difference would be the contentious application of
Chinese law to Westerners. The grinding orthogonality between
Eastern and Western imperialisms would allow compromise no
quarter.
Within Western imperialism was the struggle between fixed-
and free-market economics. A combination among the foreigners
selling Bengal opium at Canton inflated prices in 1814 to a level
that attracted vigorous development of alternative opium supplies.
Malwa exports from Company-ruled Bombay were prohibited the
next year. The reader is reminded of the Company's licensing
change in 1816 prohibiting the transport of non-Company opium.
By 1818 the traffic volume of Malwa and Turkey opium was
sharply up, while the market value of Bengal opium was sharply
down. In a failed attempt to recapture the market, the Company
bought Malwa opium and auctioned it in Bombay on India's west
coast from 1821 until 1824. Roughly from 1826 to 1831 the
Company's strategy was to limit the production and and export of
Malwa opium, still sold at Bombay. Several native states agreed
to restrict the cultivation and transport of opium. Malwa opium
via Bombay was the new Company opium whereas that via
Portuguese ports was construed as ‘smuggled’ Malwa. The third
policy begun in 1831 was the charm. The Company had failed to
influence enough native states to cut off the transport of competing

Malwa, but the smuggling route to Damão was a two-month
proposition circuitous enough for advantage. Unlimited Malwa
opium was allowed through Bombay subject to a transit duty.
Smuggled Malwa ceased to be a serious competition, and licensed
Malwa generated Company revenue. The British sway that made
shipments via Bombay more serviceable than via Damão and Goa
was insufficient to fix advantage without harnessing free-market
forces. The Company policy of high pricing gave way to a refor-
mulated policy of high volume, to the benefit of British merchants
and agents. Macáu deteriorated to an off-season resort, though
destined to boom in the 1860s as a coolie port. The demand elas-
ticity of the Chinese opium market was tested. Demand elasticity
is explained infra (meaning later in this text) by subchapter 2.1,
“Elastic vs. Inelastic.”
The first anti-opium regulations effective throughout the
Chinese Empire were decreed in 1830 and made poppy cultivation
a crime. In the following year the refinement of crude opium was
banned. Continued ineffectiveness of opium suppression lead to
political consideration of legalization in the mid-30s. Because the
imperial priority was ending the silver drain on China's economy,
the principle of prohibition was upheld, and a policy of severity
was indicated. The British Government meanwhile gave her
private merchants free reign by allowing the Company's trade
monopoly with China to expire on 22 April 1834. The monopoly
of the opium supply within India, as far as it could be enforced,
remained. Demand would only get better. Aside from a plateau
held 1800–1820, Chinese imports of opium grew impressively for
more than one hundred years ending late in the 19th century. The
stage was set for a conclusive proof of Chinese imperial preroga-
tive.
On 15 June 1839 Beijing issued an ultimatum as much as a new
domestic policy: Capital punishment would be automatic
throughout the empire for major crimes of opium production,
distribution, and consumption. Still a due process and the usual
approval of the Emperor applied. An 18-month grace period was
given to opium smokers. Whether the offenders of the other
crimes garnering capital punishment received the same grace
period depends on the historical account. Less severe but no more
conciliatory terms had been successfully imposed at Canton the

previous month. If the Emperor thought he had recently tamed
foreign traffickers, he mistook the calm before the storm.
On 18 March 1839 a High Commissioner of the Emperor not
long resident at Canton declared that all foreign opium would be
surrendered. One or two hong merchants would be executed in the
absence of compliance, and foreigners were threatened with
similar liability. A day later all foreigners were barred from
leaving Canton. The surrender of 20,283 chests of opium, all
British-owned though under conveyance of various nationalities,
was completed on the 21st of May. All British personnel soon
evacuated Canton. On July 6th the new opium policy promulgated
to Canton. Lin requested an additional decree from Beijing to
provide for the capital punishment of foreign dealers. Such was
conveyed to Canton on July 19th, thereby beginning an 18-month
grace period for foreigners. Fulminations gave way to naval
hostilities on November 3rd. The sporadic conflict between the
British and Chinese known as the First Opium War (1839–1842)
had commenced. The political nature of the war was demonstrated
by the fact British and Chinese merchants traded in some parts of
the Empire while British and Chinese troops battled in others.
The upshot of the hostilities was the first four treaties with the
West. Only Russia had negotiated any treaties with China earlier.
The Treaty of Nanking and the supplementary Treaty of the Bogue
between China and Great Britain were signed 29 August 1842 and
8 October 1843, respectively. The Treaty of Wanghia with the
Americans was signed 3 July 1844. The Treaty of Whampoa with
the French was signed 24 October 1844. The British took Hong
Kong. Four ports (or staples) were added to Canton under new
rules, and Macáu was abandoned to the Portuguese. The four
treaties, conceptually three treaties with four installments, could be
renegotiated after twelve years meaning 1854 for the English and
1856 for the Americans and the French. Opium was not directly
mentioned in the British treaties, but article XXXIII of the
Wanghia Treaty affirmed the exposure of American opium smug-
glers to Chinese jurisdiction. In a letter to a Chinese official, the
British plenipotentiary offered cooperation against smuggling and
chided, “the remedy does not lie in my hands.”
The Taiping Rebellion was well underway when the three
foreign powers led by the British in 1854 and the Americans in
1856 tried to revise treaty provisions. The diplomatic efforts were
thwarted by Chinese officials, but the differences were not settled.

On 8 October 1856 Chinese authorities at Canton arrested the crew
of the lorcha Arrow consisting of twelve Chinese but not the
captain, Thomas Kennedy. The sailing ship was owned by a
Chinese and under British registry pending renewal. The authori-
ties suspected the crew of an ‘act of piracy’. The dispute escalated
into local battle between the British and Chinese. While the hostil-
ities at Canton flared, the home Governments of the United
Kingdom and of France, unaware of the latest issue, determined
the use of force would be necessary. Among their objectives were
the establishment of diplomatic relations in Beijing and the
opening of still more ports. A substantial motive of the French
was redress for the torture and decapitation of a French-Catholic
missionary in the interior of China. The Imperial Government
undoubtedly founded its cultural vitality on orthodox Confu-
cianism not Christianity. The deployment of military forces was
not situated until on 12 December 1857 the French reinforced the
blockade around Canton that had been initiated by the British the
preceding 7th of August. The policymakers of England and
France thought they had the military support of the United States
at the time of their formulation, but the United States chose a
course of strictly diplomatic support. The assault began in earnest
the morning of December 28th. On January 9th the people of
Canton were informed their city was under new management.
The political value of Canton was limited. It's distance away
from Beijing, the seat of imperial power, made forceful demonstra-
tions quite impractical. The plenipotentiaries of the United
Kingdom, France, the United States, and Russia with escort
advanced on the Dragon Throne by way of the Peiho River. The
four Treaties of Tientsin were signed on various days of June
1858, and the name indicates the furthest point of allied move-
ment. Beijing itself was spared again. All but the American treaty
specified an exchange of ratifications in Beijing. The British
afforded the brunt and finale of diplomatic persuasion at Tientsin,
politely tapped via the most-favored-nation provisions of the other
three treaties. Only the British pact permitted the residency of
foreign envoys in Beijing and direct trade throughout the interior
of China. Article LI of the British treaty epitomized the cultural
rift between East and West. “It is agreed, that henceforward the
Character ‘I’ (barbarian) shall not be applied to the Government or
subjects of Her Britannic Majesty, in any Chinese official docu-

ment issued by the Chinese authorities, either in the capital or in
the provinces.”
Ardent Chinese placed elaborate river obstacles at the mouth of
the Peiho within range of fort guns. The intent was to prevent
passage and treaty ratification sans modification by the British and
French. The refractory French, for their part, had rudely insisted
on exchange in Beijing. If such a gesture were charitably
permitted, acquiescence expressed as the ingratiating kowtow
would undoubtedly be expected. The absence of Chinese officials
at the defensive stand made any hostilities something the Empire
could disavow. During the assault in reply, the British with a few
French suffered defeat and heavy losses. Military operations were
postponed until the next spring. On October 13th, 1860, British
and French forces occupied Beijing. Ratifications were exchanged
and two new Conventions of Peking were signed, one with the
British on the 24th and another with the French on the 25th. The
initial occupation of Beijing coincided with the two-year anniver-
sary of the initial expression of Chinese compliance regarding
opium imports. Concession had occurred during tariff negotia-
tions, and the legality of foreign opium was by now incontestable.
Some historians dispute the relevance of opium to the cause of
war and discredit the use of the designation Second Opium War. A
review of the unmagical facts will expose the sterilized version of
history. An ‘act of piracy’ was the Chinese charge against the
Arrow crew according to historian Hosea Ballou Morse. Piracy is
strikingly vague. It could be just the stereotypical robbery, but it
could as easily involve opium smuggling or kidnapping for the
coolie trade. That description of the charge is at least amenable to
euphemism.7 More importantly, the Chinese authorities were
7 Historian Morse wrote:

The opium trade was not the cause which led the British government
to engage in the first war, ending with the Treaty of Nanking, nor did it
contribute to the second war, ending with the Treaty of Teintsin; it had
no effect on the political or diplomatic action of the foreign govern-
ments which were concerned in Chinese affairs during the period from
1839 to 1858, though, as we have seen, it was to the Chinese govern-
ment, with the knowledge of foreign nations which it then possessed,
the only cause which could have led to the first war, all other causes
being, in its eyes, trivial and of no consequence. In international
commerce, however, the trade was of great importance, and was the
chief means by which, even in the years before hoarding began, a fair
interested only in the crew of twelve who were all Chinese. A

week later that interest was reduced to three members of the crew.
The precipitant war was vitalized by British forces protecting and
enhancing their nation's preeminent position regarding trade domi-
nated by a commodity that singlehandedly reversed China's trade
balance and generated riches for the Indian colonists. The British
Government sought the legalization of opium. The historical
discount of opium is a misrepresentation to the public that counters
misperception by the public. The simplistic characterization of
any war pits protagonist against antagonist, lumping the people of
a nation or nations together as one entity. Fictional plots are
pretend. A hero is not an essential feature of nature, only human
nature. The simplest generalization with any merit in this instance
requires three players: Western Imperialism, Eastern Imperialism,
and the millions of ordinary Chinese momentous by population but
not prestige. Additional roles might go to the people of England
and America who vocally condemned the opium trade. An
account from the Second Opium War may permit a concise alle-
gory of China's struggle in the 19th century. The service of coolies
within the British transport corps was certainly remarkable. “Oh,
those patient, lusty, enduring coolies! They carried the ammuni-
tion, on the day of the assault, close up to the rear of our columns;
and, when a cannon-shot took off the head of one of them, the
others only cried ‘Ai-yah,’ and laughed, and worked away as
merrily as ever. Their conduct has throughout been admirable.”
The British (or by implication of dominance, the English) were
clearly the world's leading civilization in the early 19th century.
They had initiated the industrial revolution. They had adopted
from the world the institution of slavery and made one of the
world's most prolific slavery enterprises ever. They had adopted
from the world the opium trade and made the world's leading
opium enterprise. They had the strongest navy. They reformed
from the world's leading practitioners of the African slave trade to
balance of exchange was maintained, by which the means were found

to pay for the increasing quantities of tea and silk shipped from China
to the markets of the West.
A translation of historian Gernet by Foster plainly states:
In 1856 the affair of the Arrow, a smuggler's ship stopped by the
Chinese authorities, furnished the pretext for a fresh series of military
incidents which Western historians have christened the ‘Second Opium
War’.
the world's leading abolitionists. They predominated the coolie

trade and led its abolition too. They dictated how China would
relate commercially with the world, but spared China wholesale
colonization. They were the inspiration for the American ideals of
enterprise, democracy, and freedom that have spread hope the
world over. Of the nations in the Americas, those started as British
colonies have stacked up best in the indicative first 200 years. As
luck would have it, aggression and compassion are the intersecting
hallmarks of non-fictional ‘tough’ love. It's all too easy to
condemn economic and social achievement without doing it better.
(Did you just ponder and compare the national legacies in the
Americas, or are you reading my masterpiece on autopilot?)
Assume for the moment that humanity's progressive road to the
more prosperous global economy was not constrained to the step-
ping stones of slavery and drug dealing.8 To condemn people of
the past for a lack of social enlightenment born of technological
advance is to condemn ourselves. We are stewards openly desig-
nated by democracy. We are accessories to injustices by tools we
don't grasp. We are victims of ourselves with little excuse given
what the World War II generation gave us. Not only are we
responsible in our realm for knowing what is actual, what is legal,
and what is illegal; we are responsible for enforcing and permitting
what should and should not be, with a vigor not limited to what-
ever impersonal top-down methods may be proffered us. The
learning curve gets steeper with each passing moment as tech-
nology marches on.
8 I hypothesize (1) human progress arguably follows a natural channel or
channels complicated by entanglements between ‘good’ and ‘evil’, (2) the
transition from the early Stone Age to the metal ages made the institution of
slavery initially and increasingly viable, and (3) the institution of slavery
was beneficial if not prerequisite to creating the socioeconomic sophistica-
tion required by the institutions of free enterprise, democracy, (Western)
human rights, and abolition. I thought interesting the following excerpt
from Bello, Opium, p. 18, paraphrasing Carl Trocki, here with the citation
of Trocki's pages removed and a bracketed list of consumables added:
The fact that addictive consumables [sugar, coffee, tea, tobacco,
opium] came from beyond Europe provided the impetus for imperialist
expansion, which in turn could be financed only through the develop-
ment of markets for mass consumption. Soon, the basic elements of
capitalist growth—economies of scale, comparative advantage, and the
division of labor—came together to construct free traders who sought
to remove “protectionist” barriers to their drug products, over which
they sought their own monopolies.
The time was drawing nigh in November 1867 for the first
decennary renegotiation of the British-Chinese Treaty of Tientsin,
specified by article XXVII. As usual the Chinese strove to fore-
stall if not reverse the advance of foreign influence. Critical were
relations with the British Government, once similarly defending
against recalcitrant mercantilism immortalized by the Boston Tea
Party. It was primarily British gunboat diplomacy that had
wrested international relations with the Imperial Government to
their current loftiness. Additionally, diplomatic relations with
many individual treaty powers were amalgamated by the popular
most-favored-nation provision, though somehow only Great
Britain, France, Russia, and the United States had representation
residing in China's capital. The role taken by the United States
was more akin to a friendly opportunist. Via article I of the Amer-
ican Treaty of Tientsin, the United States pledged a certain advo-
cacy for China with international affairs. As the lead advocate
seven years running, Mr. Burlingame was preparing to resign his
position as American Minister in Beijing. Under the circum-
stances the Chinese made an unprecedented but surely not impul-
sive entreaty. Burlingame was asked at his farewell dinner to
represent China abroad. Burlingame played off the suggestion, but
over ensuing days the Chinese methodically matured the notion
into a proposition that he head a Chinese mission to visit all the
treaty powers. The first visit to America was logical politically as
well as geographically. Recognition of Qing autonomy by the
United States would set a precedent for the British to follow. U.S.
hiring interests sought to explicitly confirm the labor precedent
started by the California gold rush, as they had contract labor only
4 years prior.
Burlingame together with a Manchu and a Chinese were desig-
nated what translates to English as ‘Our High Minister Extraordi-
nary and Plenipotentiary’. Burlingame could not converse in
Chinese and the two fellow envoys could not converse in English.
The two China-national envoys were to observe, learn, and main-
tain a correspondence with the Imperial Government. Burlingame
gave speeches at American cities across the country on the way to
Washington, D.C. and then London. In Washington, Mr.
Burlingame negotiated with his former supervisor, the Secretary of
State William H. Seward, without restrictions from his Chinese
employers. However, it was Seward who authored the treaty.
Lincoln's successor President Andrew Johnson was embroiled with
impeachment troubles at the time. Mr. Seward's son asserts the

polarized political landscape required the treaty negotiations to be
a private affair between Burlingame and his father. In preparation
of the all-American treaty negotiations of June and July 1868,
Chargé d'Affaires ad interim Mr. S. Wells Williams breached a
labor proposition with Beijing the preceding month. Seward later
wrote the motion by Chargé Williams proposed that negotiations
commence ‘to obtain the same advantages for our countrymen
which others enjoy.’
The four plenipotentiaries in Washington signed on 28 July
1868 what came to be called the Burlingame Treaty. The conven-
tional title could only have lessened the forthcoming ire over
Chinese immigration heaped upon Seward's memory. The two
articles affirming the undercutting of American labor were V and
VI. In article V, the two nations recognized ‘the inherent and
inalienable right of man to change his home and allegiance, and
also the mutual advantage of the free migration and emigration of
their citizens and subjects’ even to become permanent residents.
The remainder of the article declared how the U.S. and China
reprobated anything not entirely voluntary emigration and agreed
to pass laws to that effect. It was important the ‘same advantages’
other countries enjoyed not be construed as violation of the Act of
19 February 1862 prohibiting American involvement in the coolie
trade. If Chinese laborers Americanized, they would not be so
‘thrifty’. Article VI made sure ‘nothing herein contained shall be
held to confer naturalization upon citizens of the United States in
China, nor upon the subjects of China in the United States.’
The 28th of July 1868 must have been especially gratifying for
Secretary Seward. Not only did he sign his own treaty that day, he
also issued a proclamation to declare ratification of the 14th
Amendment. The constitutional amendment begins with the
clause: “All persons born or naturalized in the United States, and
subject to the jurisdiction thereof, are citizens of the United States
and of the State wherein they reside.” That suspect phrasing has
done more than to secure citizenship of freed American slaves and
their descendants. How the Burlingame Treaty and the 14th
Amendment might have applied to American-born Chinese
demonstrated a stark contrast if not an interpretive conflict
regarding citizenship. Perhaps the condition of being ‘subject to
the jurisdiction thereof’ was not superfluous like it is today.
It was 1869 when the 13th Amendment that had abolished

slavery was in its fourth year. On the 4th of March not only did
the 41st Congress succeed the 40th, but Ulysses S. Grant replaced
Andrew Johnson as President. Over the next two weeks, Grant
inelegantly settled Hamilton Fish as the Secretary of State. The
new presidency and Senate did not void the American ratification
of the Burlingame Treaty authorized by their predecessors. It was
still only Chinese ratification that was pending. A few businesses
scattered across the nation were inspired to experiment with
Chinese labor. For instance, plantation owners in Louisiana
conveyed 275 male laborers under contract directly from China.
Meeting that August for its third convention, in Philadelphia, the
National Labor Union unalterably opposed ‘the importation of a
servile race, for the sole and only purpose of tampering with the
labor of the American workingmen.’ Alike was the opinion of a
well-spoken black man—a train engineer and convention delegate
—who argued in a speech to the assembly how the importation of
coolies, if permitted by the Federal Government, would ruin the
interests of labor, both black and white.
Debate and criticism of the Burlingame mission by political
figures was conspicuously scarce in the press. The only notable
dissent came from the successive American Minister in Peking,
Mr. J. Ross Browne, who opined foreign relations based on
equality could not be had with a China so disinclined to Western
progress. He went so far as to recommend to State Secretary Fish
that the United States ‘withdraw its assent to clauses in the new
articles which involve such anomalous conditions and dangerous
complications.’ One problem Browne identified was the privileges
of residency granted to those of the most favored nations in
Chinese relations. Browne argued the privilege of naturalization,
though expressly exempted, would allow naturalization without
limit and subvert imperial authority. The press rebutted Browne
generously. Besides, the Chinese had already proven themselves
as laborers since reaching San Francisco by the thousands in 1852.
After careful consideration of her relations with all treaty powers,
China exchanged ratifications in Beijing with the United States in
the person of Chargé Williams on 23 November 1869. Grant
proclaimed ratification of the treaty 5 February 1970. That year
plantation owners shipped another 413 Chinese laborers. In
response to a Senate inquiry directed to President Grant and dated
9 July 1870, the State Department determined contracts were not

made in compliance with the anti-coolie-trade law of 1862. The
law was evaded with interpretation.
A noted essay about relations between the West and China was
written by Browne in Shanghai. He was on his way back to the
United States after relinquishing his post in Beijing. The Amer-
ican and British merchants of that port presented to him written
addresses expressing support of his diplomatic stance. A short
excerpt from his long reply aphoristically describes an important
crux of international relations: “The principle laid down by the
government of the United States is, that nations like China or
Japan may ‘enter into the sphere of our Public law in the relation
of government to government, but not in the relation of govern-
ment to men’; and the reason given for this is that, full interchange
of international rights must be based upon unity of legal thought.”
With the lengthy treaty proceedings came a burst of annual
Chinese immigration. To detractors the Chinese were identified
not simply with washhouses but communally minded prostitution
of their few women and paltry living standards. Terence Powderly
felt the Chinese were not at fault seeking better employment,
although he described them as ‘a standing menace to the welfare
of the American laborer.’ The lawless spirit of the Great Strike
was expressed in San Francisco by white mobs that terrorized
Chinatown over two consecutive nights. Demagogues had been
blaming all of California's economic problems on the Chinese
population, a once politically valued labor pool for building the
Western railroads. Incidentally, the high cost of American labor
had been a cue from the American economy to not build railroads
too fast, but railroad capitalists evaded their share of economizing.
The U.S. Government had provided the stimulus for the good of
the nation. Excessive railroad capitalization collapsed national
finances in 1873 and burdened untold millions of stomachs with
hunger, for the good of the nation. Due to pressure exerted by the
people of California, a U.S. law to provide a means of stopping
‘the immigration of any subject of China, Japan, or any Oriental
country’ contracted ‘for lewd and immoral purposes’ was passed in
1875. Another U.S. law to suspend ‘the coming of Chinese
laborers’ was passed in 1882. A policy of Chinese labor exclusion
continued well into the 20th century. Parallel phenomena were
seen in Canada, Mexico, Australia, and New Zealand. Warning of
do-goodism some 86 years ago, historian and author Persia C.
Campbell wrote, “These restrictive or exclusive policies still

obtain, though the circumstances of their adoption have been
largely forgotten. Ignorance breeds racial jealousies and it may be
that on the truth of the matter depends the future of Pacific
accord.” It should be noted that Powderly also described Southern
cheap labor as a greater menace. A distinct 86 years later Martin
Luther King, Jr. would concur with Powderly that racism had been
used to impoverish Southern workers both black and white.
The Knights began campaigns in 1878 for many State labor
bureaus and a National Labor Bureau. The four State agencies
existing at that time were attributable to the work of the National
Labor Union spearheaded by William H. Sylvis from 1867 until
his death in 1869. The Union was unable to erect a proposed
memorial to the man made their president in 1868, a champion of
labor regardless of sex or color. Perhaps it was a clue; the organi-
zation became defunct in 1872. Sylvis' ideas were not lost on
Uriah S. Stephen, a prominent founder and the first Grand Master
Workman of the Knights. Stephens, almost a priest instead of a
tailor, developed the successful, formative precepts of Knighthood
by drawing upon those of Christianity.
In 1879 New Jersey and Illinois responded to the Knights'
campaign and created labor bureaus. The effort in Illinois
involved some State legislators who were simultaneously members
of the Order of the Knights of Labor and a ‘Socialist’ group, likely
the Socialist Labor Party. The subsequent creation of several more
State labor agencies led the making of the Federal Bureau of Labor
in 1884 and the first Department of Labor in 1888. As a result
labor laws at least had a realistic means of being enforced. The
Knights would fade into irrelevance with the 20th century, but
their activism carried over. A Department of Commerce and Labor
and a corresponding Secretary's cabinet position were created in
1903. The cabinet position of Secretary of Labor and the second
Department of Labor were created in 1913. At the same time, the
Department of Labor and Commerce became the Department of
Commerce. In 1916 the Knights of Labor became no more. One
other political development of the 1880s pushed by the Knights of
Labor deserves consideration.
From 1879 to 1883 manufactures of window glass in various
cities contracted foreigner labor from Belgium, France, and
Germany to replace American glassblowers at reduced wages.
Glassblowers of Knights' Local Assembly 300 sought to protect
their wages and to speak with the newcomers. The manufactures,

courts, and police prevented interaction between the two groups.
Local Assembly 300 hired a lawyer who recommended to have
passed a law against the importation of foreigner workers under
contract. The local had the lawyer draft a bill. The whole Knights
of Labor enthusiastically embraced the legislative effort at a
General Assembly in 1883. The result in 1885 was the first anti-
contract labor law, tagged the Foran Act. The act's unofficial
namesake was Representative Martin Ambrose Foran (D-Ohio), a
former president of the Coopers International Union. Bear in mind
the lawyer wrote the first draft of this law for clients concerned
with foreign glassblowers and with the instruction to draft a law
that would likely pass.
The rationale expressed by the House Committee on Labor and
adopted by the Senate Committee on Education and Labor was
prefaced with: “The bill in no measure seeks to restrict free immi-
gration.” Distinction was made between those who immigrate
voluntarily and those who are imported not by personal initiative
but by that of the capitalist. The explanation went on to say, “they
are ignorant of our social conditions, and that they may remain so
they are isolated and prevented from coming into contact with
Americans. They are generally from the lowest social stratum, and
live upon the coarsest food and in hovels of a character before
unknown to American workmen.”
Labor's endorsement of the Foran Act was aimed against the
capitalists' practice of recruiting laborers, mainly from Europe. In
1865 manufacturers, railroads, and steamship companies had
begun importing labor under contract. This recruiting system was
used to break strikes and depreciate wages. Starting in 1869, a
system of mass advertising was used. A substantial number of
advertisements feigned hundreds of openings at exaggerated
wages to flood specific job markets. Agents, with overt company
ties or otherwise, indoctrinated Europeans about the American
Dream, made loans, and tempted Canadian workers south. One
witness to the House committee affirmed seeing an agent in Brazil.
Unless behind passive resistance from the Senate, American
capitalists did not oppose the Foran Bill, and for good reason. The
political justification for the ongoing tariff policy was protection
of American labor. Furthermore, it was reasonable to anticipate
that the bill's impact would be minimal. Until amendment by the
Act of 3 March 1891, ch. 551, an individual was allowed to assist
a ‘personal friend, to migrate from any foreign country to the

United States.’ The border with Canada was open to unregulated
entry by land if all else failed. That wasn't too often. At the end of
fiscal year 1897, enforcement of contract labor law excluded or
returned within a year of landing 6,202 immigrants out of
5,367,698. In other words, eleven one-hundredths of one percent
or on average about 517 arrivals each year were dismissed not
later than a year after attempted entry.
In House Miscellaneous Document 572 of the 50th U.S.
Congress, testimonies and consular reports describe many aspects
of U.S. immigration in 1888. From testimonies can be inferred the
story of Francisco Zapponi, who found himself unemployed that
summer in New York City. He was forty, illiterate, and spoke only
Italian. Whether he was from northern or southern Italy he did not
know, but his wife and two children were there in the village of
Cercemaggiore, so it would seem from his witless understanding
of the political geography, living on charity and the Indian corn
they could grow. Francisco had worked in the village as a mule-
teer, a farmhand, and a digger. On rare occasions, he made 3
francs a day or 57 cents—valued relative to the U.S. dollar of
1888. During the winters in Cercemaggiore, he had no work. His
wife attended to the children and never earned money. The house,
so-called, was rented. By Francisco's estimate, his family's
income averaged just over 1 franc a day or about 21 cents.
Then one day a Nicholino Bartone who went by the nickname
Vichi came to town. He let people know about the work that could
be had in American, paying $1.50 a day. A ticket to America
would cost 115 francs, but he could get it for 114 francs. So Fran-
cisco sold his mule for 110 francs minus the commission of 10
francs. A generous friend lent him another 40 francs. With seven
or eight local men, Francisco went to the nearby train station and
bought a ticket for 8.10 francs. He boarded the train to Naples in a
group of about 25 aspiring workers. On arrival someone met the
party and escorted them to one Mr. Pasque Tocci. Tocci set the
price of passage to New York City at 115 francs for the steamship
ticket, not 114 as promised, and 1 additional franc for the guide
leading to the boarding point. Francisco agreed. The ticket price
of $23 for steerage passengers was set by a steamship cartel.
Agents for the steamers worked on commission and made between
$2 and $3 per ticket sold. In Naples, Francisco bought nothing
more than some bread and a pair of underwear for about 4 francs
or 76 cents. On the voyage across the Atlantic, Francisco was

loaned 10 francs. He arrived in America with 29.90 francs or
$5.68 in his pocket and no prearranged contacts. Well, it would
have been $5.68, but he only received $4.50 from his companion
who had exchanged their monies at Castle Garden. Francisco was
watching their luggage at the time.
Francisco would have spent his $4.50 for the privilege to work,
but he spent too much of it before finding one of the Italian bosses
in New York City. Such a boss would take a group of laborer to a
place of work for $2 or $6 each. Sometimes the work was to be
had, but sometimes the men were simply abandoned there (not that
Francisco Zapponi would have known). After two and a half
months in America's financial center, Francisco was $3 in debt,
eating on charity, and sleeping on a board. He loosely lived in a
group of about 15 Italians, each looking for work every day with
the intent to save some money and go back to Italy and their fami-
lies. Some of the men had looked for work in rural areas but came
back without success. Francisco was too afraid to leave the city
because he did not want to get lost in the woods with his lack of
money and no ability to use English. He was willing to work for
75 cents a day but not 50 cents. He couldn't support his family on
50 cents.
The legal arguments used to defeat contract labor law need not
be inferred like the operations. One argument was marvelous. A
court ruling affirmed Canadian laborers who commuted daily were
not immigrants and so not subject to the contract labor law. This
ruling was eminently consistent with the law's conception. In
another case, defendant S. C. Edgar had written a letter dated 1
July 1890 in reply to an Englishman seeking work for himself and
a friend. Edgar wrote he had bought two tickets and also, “We can
give you steady work, and have places for about six or eight more
smelters if they want to come.” Judge Thayer of an Eighth Circuit
court found ‘the defendant was unwilling, and did not intend, to
enter into a positive engagement to employ Boyce or Dorosalski
until they had arrived in this country, and were found to be suitable
persons to employ.’ His Honor supported his conclusion by distin-
guishing between the words can and will as in ‘can give you
steady work.’ The decision was appealed by representation of the
United States.
A three-judge panel of the appellate court affirmed the circuit

court's ruling. The appellate court found by definition the alien
contract labor law could not be violated. An immigrant cannot
possibly be contractually obligated to work in the United States
without actually being in the United States. Think jurisdiction.
Hence, being contracted like being landed in the United States was
impossible during immigration, a process not concluded while any
pertinent screening by immigration officials has not been passed.
This line of thought became the general rule in such matters.
Folks, this is how haughty lawyers trifle with our lives. They
argue from a detached legal approximation of our world and of
justice itself. Their unimpressive legal concepts, hallowed by
legal jargon, swaddle the freedoms of a docile, unimpressive
public. Have legal opinion enough to protect your sovereignty! A
jack-of-all-trades is mastered by none.
Like the agitation for labor bureaus, the movement for the eight-
hour workday was spearheaded by William Sylvis in the late
1860s. The Knights at Reading in 1878 adopted as part of their
original constitution the eight-hour objective. In 1883 the General
Assemble discussed a resolution ‘to proclaim to the Order eight
hours as a day's work, and name May 1, 1884 as the time when it
shall be carried into effect,’ but nothing more resulted from it.
Additionally, an action intended to dispel any air of aristocracy
was taken by replacing the word ‘Grand’ with ‘General’ in the
leading officer's titles In 1884 the General Assembly modified the
constitution to declare the objective: “To shorten the hours of labor
by a general refusal to work for more than eight hours.” General
Master Workman Powderly asserted the ‘general refusal’ was not a
call to strike, a means he eschewed generally. Powderly preferred
to instruct the workers and the public about labor affairs and culti-
vate an intelligent cooperation. The eight-hour issue he handled
no differently.
Powderly directed by secret circular that each Local and District
Assembly solicit its members for essays on the subject. Each
assembly was to publish its best on Washington's Birthday, 22
February 1885, or if necessary the earliest possible date thereafter.
When the day came numerous papers throughout the U.S and
some in Canada published these essays. Leading papers responded
with editorials of their own. Powderly intended to publish his
contribution in the February issue of the North American Review,
but it was delayed until the April issue. His final three sentences
provoked Americans to reflect about what kind of nation they
should be:
Give men shorter hours in which to labor, and you give them more
time to study and learn why bread is so scarce while wheat is so
plenty. You give them more time in which to learn that millions of
acres of American soil are controlled by alien landlords that have
no interest in America but to draw a revenue from it. You give
them time to learn that America belongs to Americans, native and
naturalized, and that the landlord who drives his tenant from the
Old World must not be permitted to exact tribute from him when
he settles in our country.
Public opinion was being shaped in favor of the eight-hour day,
but the inclination to strike would not be assuaged.
A rival labor organization named the Federation of Organized
Trades and Labor Unions (FOTLU) was losing members and faced
dissolution. At a congress held November 1884 in Henry George
Hall, Chicago, the FOTLU leadership declared, “eight hours shall
constitute a legal day's labor from and after May 1, 1886.” In
December 1885 at the next convention, the FOTLU adopted a plan
and agitated for a national movement. Their plan left enforcement
of the May Day deadline to individual unions. The movement
swelled as the Federation faded into oblivion. Enforcement by the
strike was predictable. So was the opposition of the Knights'
central leadership.
The dissension between the Order and the Federation was
apparent from the beginning. At Pittsburgh in November 1881,
many Knights had attended the inaugural meeting of the FOTLU
but never again. The second meeting was reduced to a handful of
participants zealous about trade unionism. The Federation though
weak seemed to draw the attention of the Order. At the Knights'
convention in September 1884, a constitutional change gave
recognition to National Trade Assemblies. The attempt of the
Knights to absorb trade unionism would actually nurture its inde-
pendence. In a few years, when the Order was moribund,
Powderly would refer to prominent trade unionists as ‘the damn
Jews’, ‘these Christ sluggers’, and worse. May Day 1886 loomed
in the interim. General Master Workman Terence Powderly at the
General Assembly of October 1885 counseled, “While speaking on
the eight-hour question, let me say that the proposition to inaugu-
rate a general strike for the establishment of the short-hour plan on
the 1st of May, 1886 should be discountenanced by this body. The

people most interested in the project are not as yet educated in the
movement, and a strike under such conditions must prove
abortive.” In 1886 Powderly and the Knights' general executive
board made official sanction of any strike difficult to obtain,
perhaps to a fault. The number of Knight members subjected to an
employer lockout spiked that year and the next, but the concur-
rence of increasing membership and the eight-hour movement
offer alternative causations. Despite Powderly's position and the
fact that the General Assembly never sanctioned a strike on May
Day 1886, many Local Assemblies would resolve to strike with
alleged sanction. Strikes were becoming the Knights' celebrity.
Chicago, the industrial center and inexorable battleground, was
thriving during the 1880s. Between 1880 to 1890, yearly net
industrial output and wage earnings each increased about 3.5
times. Chicago advanced from the fourth to the second most
populous city in the land by doubling her numbers of both foreign-
born and native. The city must have been well managed despite
the nation's most influential concentration of socialists and anar-
chists. German immigrants in Chicago and other industrial cities
were the bedrock of a militant socialist-anarchist movement orga-
nizing in the United States. Otto von Bismarck had exiled
numerous socialist agitators from Germany after the passage of his
anti-socialist law in 1878. The prevalence of social-minded antag-
onists both political and revolutionary was actually symptomatic
of Chicago's successful formula. Foreign-born residents
accounted for 41 percent of the city's population and relatively low
wages. In Terence Powderly's estimation America's anarchism
was the legitimate child of America's monopoly. Nowhere was
that causality more true than Chicago. Local newspapers led by
Joseph Medill's Chicago Tribune gave the businessman's perspec-
tive of current affairs. Cook County's police made that perspective
corporeal.
When the late Abraham Lincoln was honored by Chicago in
route to his burial in Springfield, Illinois, the Chicago Tribune
eulogized Lincoln as ‘the great and good King of men.’ On 12
July 1877, only four days before the B. & O. wage cuts ignited the
Great Strike, the same Tribune prescribed for the tramp epidemic
‘a little strychnine or arsenic.’ On 25 July, it was the Chicago
Times suggesting the use of hand grenades against ‘an uncombed,
unwashed mob of gutter-snipes and loafers.’ The next day's issue
of the Times noted about police methods: “The sound of clubs

falling on skulls was sickening for the first minute until one grew
accustomed to it.” Empathy from any haves for the have-nots just
wouldn't do. Treatment of strikers was one thing, but a capitalistic
purist would never wantonly poison tramps like that. It would be
far better to suffer that national problem, bloat the labor pool,
depress wages, and blame the riffraff for their own deplorable
condition. The only menial type valued by the usual tycoon was
the strikebreaker, a favorite pro tempore.
The education of new Knights in the early years of painstaking
growth had created a culture of superior cohesion still evident in
the strikes pitting the Knights of Labor against tycoon Jay Gould
in the years 1883–1886. The same Gould that at some point said,
“I can hire one-half of the working class to kill the other half.”
Labor actually had the upper hand in 1884 and 1885. A reporter in
Galveston, Texas on 5 November 1885 explained, “The Missouri
Pacific Company was also granted permission to send out water
tanks. These humble requests from gigantic corporations indicate
how supremely the Knights are masters of the situation.” The
great unification of labor and the Knights in 1886 was driven by
and brittlely forged on coarse mania not erudite prudence.
Powderly opposed a new strike in effect against Gould's railroads
in the Southwest, the impending strikes of the eight-hour move-
ment, and the quick growth in membership that allowed anarchists
and unfit others into the Knights. He had lost executive control.
In Chicago on the evening of 4 May 1886, as the eight-hour move-
ment forged on, police thuggery was answered with a bomb.
Dynamite was the new democratizer of violence. Four of
Chicago's most recalcitrant labor leaders were convicted in a show
trial and hung on 11 November 1887 in the Cook County Jail,
superficially for the crime of being anarchists. Public opinion
recoiled against labor, and the Knights of Labor began a moribund
slide. The FOTLU strategy was a smashing success, for on the
Federation's ashes was created the American Federation of Labor,
successor to the opening position of America's foremost labor
organization. Intellectualism for the workingman was replaced
with trade unionism. Yet for both its successes and failures, the
Great American Labor Solidarity of 1885–1886, as I am calling it,
was monumental. You would not know it by the longstanding
snub of publishers, academia, and politicians.
Attention has been given to the Haymarket Affair. It left

indelible record of a Chicagoan social order with national signifi-
cance. The record is not merely a prototypical tale of material lust
with the inevitable byproducts of misery and desperation. It is a
warning. U.S. Representative Janice D. Schakowsky (D-Illinois,
9th) explained in 2005 on behalf of the Cook County Board of
Commissioners, “America is a nation of immigrants. Nowhere is
that more evident than in the 9th Congressional District of Illinois.
We rely on the labor and other contributions of immigrant
workers, especially undocumented immigrants.”9
The United States of America has championed freedom like no
other nation in the world. Healthy pride is a natural part of Amer-
ican culture. But to sincerely frame America's past or future
purpose as inviolable freedom for all, for the inept and the corrupt,
for all the world, is a fool's millstone itemized as an honorable
necklace in a sacrosanct bill of goods. As far as the world goes,
American freedoms are an example to but not a holding of the
world. Check a map. The crux here is freedom's essence.
Capacity for freedom like capacity for other human conditions
advances with technology. Freedom has not eternally existed on
earth nor in most parts of the galaxy. Freedom has never been
perfect in this world, except as a notion. Freedom as the ethereal
notion or a retrospective concept is an impossible standard, but
that's exactly what makes freedom the ideal so powerful as a
facade of excellence and a weapon of guilt.
The white inhabitants of antebellum New England purged
slavery from their historical records. Cotton was both agrarian
King and critical raw material to the Industrial Revolution. Since
9 If not otherwise indicated, the position of senator or representative, the
political party, and the constituents' State all specific to individual congress-
people, and the district ordinal as applicable to the representatives thereof,
have been determined using two Web portals: “The Biographical
Directory of the United States Congress, 1774–Present” portal
(http://bioguide.congress.gov/biosearch/biosearch.asp) and the “THOMAS”
digital archive of the federal legislation process (http://www.thomas.gov or
http://thomas.loc.gov). The Thomas search interface of the Congressional
Record, daily edition, has selection lists specifying every congressperson of
every U.S. Congress since and including the 101st Congress (1989–1990), a
feature particularly important in identifying district ordinals. The lists also
indicate party membership for Congresses no older that the 109th (2005–
2006). Party membership is always indicated by the Biographical Direc-
tory. Furthermore, the source of the Congressional Record, daily edition as
referenced by this work was the Thomas portal unless otherwise indicated.
the 1950s consensus historians have inculcated Americans with an

indomitable purpose of freedom to all forged by the American
Revolution. This imagined legacy anointed American democracy
and capitalism as ordained institutions of universal freedom.
Americans now, progressively stupid, conceive the ordained insti-
tutions to simply be American government and economy, if not an
American state economy. The needy special people using all the
heritage and history at their disposal substantiate a crisis of iden-
tity—an unwieldy identity based on everyone and everything but
themselves. They are demented sheep who shepherd the heirs of
civility toward Third World psyches and savagery.
Consider a scholarly book published in 1957 in cooperation
with the Committee on Research in Economic History, and based
on research sponsored by fellowships from the American Associa-
tion of University Women, the Social Science Research Council,
and the Fulbright Commission. From that intelligently researched
and written book, truly, comes the following extract:
The contract labor laws put American labor on a track of prejudice
and fear with regard to immigration which has become tradition
and policy, unassailable and inviolate. *x*x* This group, the
window glass workers, realizing that their case was a rather
special one, sought support by playing on the prejudices against
‘new immigrants’ which other Knights felt, and thus broadened
their appeal. Other groups in the Knights of Labor responded to
the racialist appeal because in strike after strike they were beaten
with immigrant strikebreakers.
The academics and staff involved with the Journal of African-
American History, a respected journal renamed in 2001 to elimi-
nate the word ‘Negro’, might know something about racism. In
the July 1965 issue may be found:
In addition to the above citations, there are numerous newspaper
accounts attesting to the acceptance of the Negro by the Knights
of Labor. Even when the Negro represented a minority in a partic-
ular branch of the Knights, he could hope for elected positions on
all levels of the Order—the Local Assemblies, District Assem-
blies, State Conventions and to the General Assembly.
Yes, the three ideas of freedom, democracy, and capitalism are
related. No, they are not inextricably linked. Democracy does not
guarantee freedom. Neither does capitalism. The guarantee of a
peoples' freedom is only as strong as the people themselves.
People are the same but not, if you know what I mean. Until the
Immigration and Nationality Act (INA) of 27 June 1952, the Foran

Act as altered from time to time by amendment remained authori-
tative, if not effective. The INA created the H nonimmigrant visa
category for temporary workers. Now in the late 2000s (twenty-
singles) after decades of progressive incursions into culture and
institution, the same labor rights must be secured yet again.
Hello, fellow Americans. I am like you: endowed by enigma to
subsist unemployed, underemployed, overworked, but certainly
disfranchised. My reasons for writing this book are like the
reasons you might have for reading it. In my case, I hold a
master's degree in Computer Science and do not merit a gainful
programming job. After researching this book, I have a good idea
why. I have been displaced by one of some 200,000 foreign tech-
nology workers, mostly from India, here as nonimmigrants. As
you will see if you read on, American workers of all industries,
even lucrative healthcare, are in danger. Within Congress gestates
a Homeric scheme of job-market deluge. Worker imports are but
one technique of our adversaries today.
Is your standard of living as good now as it was when this
century began? Sick of hearing how good the economy is? or has
been? or will be? I am not pro-labor. I am pro-functionalism, in a
grass-roots way, and pro-American as in the Dream. Our great-
grandparents won the gainful 8/40 work week. I am not about to
cede that legacy! That's why!
1.2 Introduction
Almost twenty centuries; and in the greatest and richest of

Christian cities, whence missionaries are sent to Asia, to Africa,
to the islands of the sea, human labor is cheapest of commodities,
and man, “the roof and crown of things,” is turned into a
signpost!
—Henry George (1839–1897), U.S. economist
Assume makes an ass of ‘u’ and me. Some people will warn you
to assume nothing. With any value system you have, you must
assume something to know anything. True intelligence requires
the ability to identify and debate our assumptions. True intelli-
gence requires both intellectual and emotional maturity that can
only be developed over time with studied experience.
This book is an imperfect expression of my imperfect values
regarding the national landscape we share. It is a landscape replete
with disfranchised working-class Americans. I am willing to enter
the fray of public debate in earnest because the consequences of
that debate have already been thrust upon me. Of late I understand
my personal values placing what I know above who I know have
been a handicap to my success given that most Americans have
been otherwise for at least my entire adult life. Of late I under-
stand my wealth of civic self-government has long been eroding,
brick by brick, with the corruptions of our individual self-govern-
ments. As we the people distance ourselves from the Second
Amendment, we really recoil from the individual responsibilities
of self-government. We recoil too from the privileges, and this we
shit I don't like. I am willing to expose my character intellectually
and emotionally to address our political problems. I challenge you
the reader to confidently do the same, foremost with yourself.
Those that effectively exploit working Americans are not going
to expose themselves intentionally. They will use omission,
distraction, and misinformation. Solving our country's problems
requires accurately identifying their methods. The dots we must
connect ourselves. Hence, we must make good assumptions. No
one said life is easy. I wrote this book with the goal of making it
easier.
Reading this primer is about connecting dots. Some of those
dots are inside each of us. The current state of national affairs is a
reflection of all citizens, even you and me. The inner dots are
1.2 Introduction 67
presented before the outer dots. The first inner dots are intellectual
fundamentals relating to free enterprise, fiat money, and national
labor policy. The remaining inner dots are psychological funda-
mentals relating to cultural fallacies and natural facts. By broadly
answering the intellectual and emotional challenge within, the
shared social challenges described by the remainder of this book
will be more winnable. The thought journey continues with a
description of outer dots, propaganda, and inescapable correla-
tions. The discourse concludes with poignant analysis to instill a
love of knowledge and to elucidate the outcry of a precious Amer-
ican heritage.
Chapter 2
FREE ENTERPRISE 101
2.1 Supply and Demand
There are now as many nostrums for our financial diseases as

there are people who talk about them, as many bills for reform
and relief as there are members of Congress; while each
succeeding day only serves to send us farther and farther from the
true course, and to render all the more difficult any return.
―Henry V. Poor, North American Review, Boston, January 1874
Economics is about the distribution of wealth. The total wealth

available, perhaps including services like goods, is often modeled
as a sliced pie where each slice represents someone's share. The
fundamental of capitalism is the requirement that one may not gain
more pie than one contributes. One contributes to the pie to
exchange one form of wealth for another. Assuming and
demanding competency of the participants, if economic exchange
is voluntary and transparent, participants always improve their
own welfare. There is a morality and sophistication to it. The
meaning of ‘welfare’ has been narrowed by demagogic socialists
who have successfully cultivated feeble-mindedness as sanctuary
to the aggrandized social feebleness for which they are the saviors.
The fundamental of socialism is the precept that one contributes
according to one's capacity and takes according to one's need. The
sophistication required for conviction of entitlement is less than
that for conviction of self-reliance, hence the mass appeal. In
America and throughout the West the political elitists of the left
and the right have compromised everything but their shared
elitism: the result, plutocratic socialism. Socialist doctrines come
in many varieties but do have the merit of elevating ignorant
69
70 2. FREE ENTERPRISE 101
throngs to a half-baked socioeconomic grasp. Peoples with lega-

cies of self-directed popular socialism are more successful than
peoples who have never had at all any grass-roots political move-
ment strong enough to establish a stable government. In the
world's meanest civilizations are plebeians who understand little
more than thuggery. There, for example, adults brainwash
prepubescent children into soldiering and perhaps mutilate their
little ears for dereliction of duty. Cultural appreciation of
economics is critical. It should be cultivated continuously. Good
economics is about the creation of wealth.
Supply and demand principles are fundamental to economics
and your welfare. On the supply side, sellers seek to maximize
profits. Profits rise with increasing per unit profit margin and sales
volume. Per unit profit margins widen by increasing the sales
price or by reducing costs. Selling prices have a maximum limit
with competition between sellers for scarce demand. Sellers will
seek the maximum. Costs are never less than zero. Thus profit
margin is limited by seller competition for scarce demand. Reduc-
tion of demand scarcity expectedly increases market volume but
also raises the equilibrium price. The result of connecting the dots
is a supply curve always increasing in price with increasing
demand. The simplest supply curve is a line as shown labeled S in
figure 2.1. Notice it must slope up from left to right.
Figure 2.1 Supply and Demand Model
$
S
D
Quantity
Adequate supplier competition is required to create a well
defined curve sloping up to the right. Without it the prices set by
each seller are not well correlated. They are arbitrarily high for a
given demand without constraint of some type, such as govern-
ment regulation.
On the demand side, buyers seek to maximize affluent gain
across competing markets. Affluence increases by increasing
spending volume and increasing bang for the buck on purchases
2.1 Supply and Demand 71
across all markets. Increases of spending volume are limited by

money supply and individual earning power. Buying prices have a
minimum limit with competition between buyers for scarce supply.
Buyers will seek the minimum. Reduction of supply scarcity
increases market volume and lowers the equilibrium price. The
result of connecting the dots is a demand curve always decreasing
in price with increasing supply. The simplest demand curve is a
line as shown labeled D in figure 2.1. Notice it must slope down
from left to right.
Adequate buyer competition is required to create a well defined
curve sloping down to the right. Without it there is no market.
Flooding a market can serve to starve weaker competitors.
The balance point between the market forces of supply and
demand are shown graphically as the intersection of the two
curves. Various agents of market change can be intuitively under-
stood by assuming one curve changes position but not shape.
Increasing market supply has the effect of shifting the supply
curve right and lowering the equilibrium price as in figure 2.2.
Figure 2.2 Supply Force Increase and Shift
$
S S
D
Quantity
Reducing market supply has the opposite effect. Increasing the
demand has the effect of shifting the demand curve right and
raising the equilibrium price. Because the relativity between
supply and demand determine the price in this model, a new price
equilibrium is obtainable by changing supply or by oppositely
changing demand. The opposite nature of each change very differ-
ently effects market volume. Simultaneously increasing supply
and demand by the same quantity (or volume) does not change the
price balance. In this economic model, offsetting (volumetric)
changes to supply and demand may achieve an equivalent price or
an equivalent market volume, but not both.
The two curves do not move vertically with independence.

Money is an arbitrary scale. That is the simplistic truth. Later we
consider the situation where certain individuals, say buyers only,
have an extra $10 million from spontaneous production. Then the
arbitrary scale of money is adjusted sooner for the market curves
of some people than for others. For now, to understand only the
simple truth is enough.
2.2 Elastic vs. Inelastic 73
2.2 Elastic vs. Inelastic
In most of the dissertations we listen to on the “identity of

interest” which exists between labor and capital, it is assumed not
only that the laborer's share of the product of labor will reach him
through the natural workings of economical laws, but that it will
reach him at once. The fact is it does not.
―The Nation, New York City, 25 April 1867
You need a gallon of milk. The price yesterday was $2. Today it's
$5 because the cows went on strike protesting the use of cheap
utter cream. Disregarding the ethics of cheap utter cream, do you
still buy the milk? The next day the price is $10. Would you find
an alternative to buying a gallon of milk?
Of course you would, or this book is not for you. You can do
without having cereal and milk. You could try soy milk or
powdered milk. Maybe you will have more eggs for breakfast.
Most markets exhibit appreciable consumer flexibility. When the
consumer can in general do without by modifying behavior, the
market is said to be elastic. The supply and demand model of the
previous section assumed an elastic market.
Now consider gas at a price over $3 a gallon. What do you do
then? The current gasoline market in America is quite inelastic.
However, you and I both know we would use public transporta-
tion, a bike, stay home, something, given a high enough price.
The gasoline market is not completely inelastic.
For the hypothetical moment, let me say sorry. Turns out you
need brain surgery. Do you want the discount brain surgery for
$10, or do you want the premium gazillion dollar variety? Urgent
medical care constitutes an extremely inelastic market.
In the supply and demand model, elasticity is indicated by slope
steepness. Eliminating demand scarcity raises the intersecting
slope of the supply curve until price equilibrium disintegrates.
The demand curve shifts far to the right across the quantity scale
so the curved nature of the supply curve is apparent. Within a
narrow, magnified view of the centered cross hairs of our lines, we
can think of lessened demand scarcity as a counterclockwise rota-
tion of the supply and demand curves toward vertical and hori-
zontal limits, respectively. Inelastic market conditions lack
scarcity of demand and practical buyer alternatives. At some point
it would be wrong to call it a market at all. Observe practical
alternatives require a knowledge of market opportunities and the

means to exploit them. If you are envisioning this fully, the curved
nature of the demand curve intersecting higher but to the left of
itself follows.
Figure 2.3 Supply and Demand Model on a Grand Scale
$
S
D
Quantity
Consider eliminating the diametric scarcity of supply. The
supply and demand curves at the intersection approach sloping
limits in a clockwise fashion. The slope of the demand curve
lowers until price equilibrium disintegrates. In the extreme, a
world without unsatisfied material needs would not need money or
economizing. Therefore, unqualified use of the term inelastic
usually means high consumer prices and a lack of demand scarcity.
Imagine in figure 2.3 the shift to the right of the supply curve until
the bottom of line S intersects the bottom of line D. At that inter-
section point the demand curve controls price. There is no reason
to assume the demand and supply curves extend no further as
straight or virtually straight line segments, at either end. Having
endpoints as shown is a modeling convenience. Perhaps we could
specify a meaningful invariant of right angles at the intersection of
the lines, unlike figures 2.1 and 2.2, but I am neither an economist
nor a mathematician.
Flooding the market is a hostile business tactic that eliminates
supply scarcity. John D. Rockefeller flooded markets temporarily
to starve competition as he built his empire called Standard Oil.
The labor market is a special principal market because the majority
of participants are amateur sellers. A flooded labor market is
perfectly endurable for businesses. Typical mass ‘consumptivism’
(consumerism seems to be taken) can be viewed in the labor
market by redefining it as a market of jobs. A sadistic misnomer is
the report of a flooded job market. Such verily is not a realistic
business practice or condition. A flooded job market proper is
simply an anomaly that signals a much needed economic restruc-
2.2 Elastic vs. Inelastic 75
turing is in progress. (Higher wages are lower negative prices.) It

is a washing of jobs because the drainage is implacable. The
washing of labor from the labor pool is tantamount to actual death,
and actual death is contested with great individual commitment
and offset by great systemic indifference. The indigent reproduce
especially well. Floods of employment are in labor, my friend.
2.3 Price Controls
The system of wage and price controls in effect during 1972

helped bring about a combination of less inflation and more
production. But it is not the best system for 1973.
―President Richard Nixon, 30 January 1973
While I continue to oppose mandatory wage and price controls, it
is essential that wages and prices be carefully watched, that labor
and management be constantly aware of public concern in this
area, and that Government have the information it needs to
persuade labor and management to do their duty in the effort to
reduce inflation.
―President Richard Nixon, 2 August 1974
An elastic market has the self-regulating forces of supply and

demand. In such a system, prices are controlled by a natural law
of conservation. Natural price control does not make everyone
happy, but it does facilitate as much satisfaction as possible in
terms of quantity sold. The transaction of each unit requires a
buyer and a seller. The quantity sold is the lesser of the quantities
supplied and demanded at some given price. The price that maxi-
mizes the minimum of the two quantities (see in figure 2.4) occurs
when the quantities are equal because with changing price the
quantities move in opposite directions. A specific price such as the
optimal price defines a horizontal line.
Figure 2.4 Market Volume Potential
$
min S
imu
m
n
nctio
fu D
Quantity
In an inelastic market the supply and demand model fails to
depict the situation. That is, no balance between supply and
demand moderates price or optimizes satisfaction by quantity. The
seller optimizes satisfaction for himself. If we as a society value
money above all else, we can expect to be exploited as consumers
in any inelastic market. How much bling-bling do you want?
2.3 Price Controls 77
Price controls in an elastic market do not work as historians will

confirm. The price control is already built in. If dictated price
strays away from the natural price of equilibrium, participation by
either sellers or buyers will suffer. Thus, the volume of the market
will suffer. Profits will suffer. Production will suffer. Shortages
will ensue.
In an inelastic market, price controls not set too low for healthy
seller profitability will relieve buyers in a vulnerable position.
One could look at examples of healthy businesses in elastic
markets and come up with a reasonable profit margin for inelastic
markets critical to society. Critical markets are the socioeconomi-
cally requisite utility industries. The difficulty with regulation is
the waste of resources by the utility in absence of the conse-
quences of competition. In such a case, thorough auditing and
sound leadership are necessary to bring stand-in consequences.
Sound leadership happens on the spot. Someone must be
trusted in the moment or else decisions, if made at all, are made
ignorant of true context. If we could run our lives based on a rule
book, life would be rather dull and empty. Attention matters.
Throwing money at a problem is not adequate involvement, but I
digress.
In summary, sellers and buyers making ‘greedy’ but informed
decisions create a communally optimized solution balanced at a
natural, market-driven equilibrium. In an inelastic market, espe-
cially of sufficient size to be impersonal, greed is unchecked and
destructive. A judicious, overarching control is needed in situa-
tions destructive to vital socioeconomic means. I liken this
conclusion to the characterization of algorithmic problems. Some,
like making correct change with the fewest coins, are optimally
solved by a greedy approach while others are not. When you
make change, use the biggest coin possible and repeat.
2.4 Money and Wealth
To say that gold has risen to 33 per cent. premium, is a pleasant

way of stating that paper money has depreciated 33 per cent.
―The New York Herald, circa November 1862
Money is not wealth. Money is a medium of exchange and a claim

on wealth. Fiat money is backed by the force of man-made law.
Because we anticipate fiat money can later be exchanged for
wealth, we are (un?)naturally willing to except it as payment. In
the absence of force, natural law requires money have an
extractable, intrinsic wealth, as for example with gold coins (if one
dares melt them) or a gold standard. Money based on gold has a
natural value but subject to the supply and demand of gold.
Money, like wealth, has a price. The fact that money buys itself
(via the loan) requires the original amount of money called the
principal be paid back and then some. The effect is that money is
always leased rather than bought outright. The excess of the prin-
cipal is the price to borrow the principal over time. A loan price is
typically expressed as a percentage related to time called an
interest rate.
The related concept of exchange rate defines a relation between
purchasing power in one currency with another. I am going to use
the term exchange rate more loosely to relate the same currency at
two different points in time or to relate different forms of wealth at
the same point in time.
Because the exchange rate between today's money and tomor-
row's is not necessarily unity or exactly one, the real price of
borrowing money is not simply the interest. Inflation causes loss
in the purchasing power of money over time. Deflation causes
gain in the purchasing power of money over time. These concepts
will be addressed ad nauseam a bit later. For now note the mate-
rial gross profit for the lender is equal to the interest paid minus
the loss due to inflation, or it is the price paid plus the gain due to
deflation.
As an aside, one could use the term inflation to mean positive or
negative inflation. Acceleration is sometimes used generally to
include deceleration meaning strictly negative acceleration.
2.4 Money and Wealth 79
The exchange rate between different forms of wealth assets may

change over time. For example, some amount of silver is
exchangeable for a troy ounce of gold. The price of gold may go
up or down relative to silver. The price of gold relative to silver is
not measured using currency.
A holder of gold will see his buying power fluctuate in a world
of change. These typical fluctuations are naturally smoothed out
by investment holdings. Shrewd gold investors convert holdings
to relatively discounted wealth , perhaps silver. The induced gold
sell off increases the market supply and lowers the price of gold.
Later when gold prices drop, the same shrewd investor may
exchange the silver for more gold than before. Not only does the
successful investor benefit, society benefits from increased price
stability and supply rationed in times of plenty for times of
greatest demand. If market forces are dynamic, the economy is
helped along when these investors do well.
Note that the investor playing these fluctuations requires all buy
and sell transactions to be paired. When investor mania becomes a
sociopsychological force, a pyramiding scheme ensues. A pyra-
miding scheme functions via the greater fool theory. The next
buyer of some asset expects to sell later at an even higher price.
Eventually, investment resources are exhausted for whatever
reason and the last manic buyer is the greatest fool.
In a zero sum game where the amount of wealth is not
increased, the shrewd investor is a contrarian. Players in a zero
sum game are not creating prosperity, they are gaining or losing it
from each other. They are really speculators. Even if you don't
wish to play, if you hold an asset or even money, you are playing.
People generally protect themselves with holdings diversification
and worldly attention.
Although a contrarian is more enlightened than a greater fool,
neither are proselytized in the ways of wealth creation. Because
all consumption is paired with a facilitating production, being a
productive member of society involves generating wealth or
increasing efficiency. As a generator of wealth or efficiency, one
may demand a share of the contribution. Welcome to the work
world, where you are a business person (percentage share) or a
working person (flat fee).
2.5 The Inflationary Process
An immense inflation or bloat in this wonderful paper money

which our financial Midas by his touch is to convert into gold,
must come next. Cheap in material, easy of issue, worked by
steam, signed by machinery, there will be no end to the legions of
paper devils which shall pour forth from the loins of the
[Treasury] Secretary.
―Representative Clement Laird Vallandigham, D-Ohio, from the
House floor 3 February 1862
The concept of inflation is tied to the use of money. Without

money inflation does not exist. To illustrate, imagine the
economic value of an economy is a cake and the money used as a
means of exchange in that economy is the icing. Increasing the
amount of icing without changing the size of the cake will require
a thicker coating of icing. Now more icing is used over the same
amount of cake, including the cake of your slice.
The amount of icing needed per unit of cake, on average, repre-
sents the purchasing power of icing as money. If icing sits in your
bank account without gaining interest, you are losing buying
power because the purveyors of icing are laying it on thicker and
thicker—elsewhere. When the density of money increases, your
same money is against increased competition.
In an elastic market, the demand curve moves up when the
supply of buyer's money increases. The new optimized equilib-
rium is at a higher price. Unregulated sellers in an inelastic market
likely have margins such that moderate adjustments to money
supply are not noticeable. The sky is falling if otherwise!
The basic idea is this: Inflation is the unitary (per dollar or
whatever) devaluing of money used by an economy in proportion
to the amount that money increases with respect to the amount of
economic value in that same economy.
Deflation works the opposite way such that the ratio of icing to
cake decreases. For example, as technology allows increased
productivity the cake of economic value grows. Assume people do
not adapt immediately by consuming more. Efficiency is a cause
of deflation.
Holders of icing don't like inflation but do like deflation.
Holders of hard cake assets do not have a real change in intrinsic
wealth based on inflation or deflation. That intrinsic wealth is
2.5 The Inflationary Process 81
simply measured in mutating units. The price is changed but the

utility is not. Loaners of icing have vested interests like holders of
icing because they are stuck waiting for their money. Borrowers
of icing are the opposite and like unexpected inflation but do not
like unexpected deflation. Loaners have an inflationary expecta-
tion built into the price of the loan.
As previously explained, wealth may gain or lose ground in
exchange with other wealth as market forces of each kind of
wealth change. Price changes due to redirected supply and
demand are not inflationary or deflationary. These price changes
cancel each other out across the economy. Psychology changes
relative market fashionability. Savvy holders of investment assets
must consider price changes due to non-inflationary market forces
as well as inflationary forces involving the balance between
money supply and total wealth.
To keep the purchasing power of money constant in theory,
changes in the economy's total value must be paralleled by offset-
ting changes in money supply. Total economic value is oft
measured by Gross Domestic Product. A reason for the qualifier
‘in theory’ is the changing nature of what money can buy. Today's
new car is not equal to yesterday's new car. Relating today's
apples to yesterday's oranges is subjective. It involves psychology
and invites politics. Some aspects of wealth are not subjective.
The physical utility of gold, as for shiny jewelry or industrial use,
is a nonnegotiable property. A gold filling fills regardless of the
market. The salient distinction between gold the investment (or
money) and gold the consumer's possession is the relevance of
market value.
2.6 What's Yours
To take from the people the right of bearing arms, and put their
weapons of defence in the hands of a standing army, would be
scarcely more dangerous to their liberties, than to permit the
Government to accumulate immense amounts of treasure beyond
the supplies necessary to its legitimate wants.10
―President Andrew Jackson
Standard of living is a term meaning a quantifiable level of

economic consumption. The quantifying in practice has no perfect
method, but the idea is still useful. The change of overall afflu-
ence of society is indicated by change in the average individual or
per capita standard of living. An economy-wide increase in total
affluence tends to, but temporarily may not, reflect the direction of
affluent change for the majority of individuals. Divergent trends
would indicate a minority having an extreme change opposite to
the widespread trend. The case of a minority's rapid impoverish-
ment is not physically sustainable any more than arbitrarily large
dept. Sustainability has more to do with our scruples than our time
scale: we have another 5 billion years left on the sun. Rapid mate-
rial gain in contrast to the majority is not likely sustainable for
political and social reasons. Therefore, prosperity change for an
entire economy is a rough indication of change in the typical indi-
vidual's standard of living and vice versa, more so over the long
run. Essentially, one would expect the arithmetic mean and the
median to roughly correlate. Beyond the possibility of extreme
affluent change within a minority, another reason for the rough
correlation between the average Joe's standard of living and the
prosperity of the entire economy is the change of total population.
The whole point of per capita data is to adjust for and filter out
population change.
10 President Jackson makes inference to the Second Amendment, the one that
starts ‘A well regulated Militia,’ and to the right to bear arms as a guarantee
of lethal means with the people for use in their judgment against any
standing army. The right to hunt animals is an issue subsidiary to the right
to bear arms. Our constitution prohibits a standing army by prohibiting the
funding of a U.S. army for more than two years by any single appropria-
tion: Constitution of the United States, article 1, section 8, clause 12.
2.6 What's Yours 83
Increase of the average standard of living is deflationary. More

available economic value, as with increased productivity, makes
the same money compete harder. Using the cake metaphor, more
cake to eat means the evenly applied or average icing must now be
thinner, more efficient. Decrease of the average standard of living
is inflationary. When addressing political leaders, remember
increasing prosperity is deflationary and lowers price levels.
Observe prosperity is tied to the size of the cake, not the amount
of icing. Changes in cake size are the aggregate result of indi-
vidual results. Individual results have individual consequences in
a well motivated society. Name one virtually absolutistic society
that had or has self-sustaining prosperity. You would be naming a
society virtuous in medieval terms at best. You should be able to
name two if you have thoughtfully read this book from the begin-
ning. After the fall of the Soviet Union, China now embraces capi-
talism but very carefully. Changes in cake are the domain of
sound principles respecting natural law and you. So what happens
with changes in icing?
Increases in the amount of icing are inflationary. The real world
process is called monetizing the debt. Mere mortals must borrow
and incur dept when they spend more than they receive. The
masters of fiat money have a more convenient option. Monetizing
the debt is simply paying debt with money that did not exist until
the payment was made. Just man the printing press a little more,
or bump up an electronic number. The fiat masters are govern-
ment executives. The practice of government deficit spending is
achieved with monetized deficit spending but also with the selling
of government debt securities. Selling government debt delays the
need to pay later. A delay to monetizing a debt just makes the
amount so monetized greater. Decreases in the amount of icing are
deflationary. This rarely happens. The practice could be called
government surplus saving. More technically it would be called
demonetized surplus saving.
Changes in the purchasing power of money due to changes in
money supply occur because the government budget is not exactly
balanced. To be shown later, inflation created by monetized deficit
spending exploits savers and fixed wage earners of money for the
advantage of business owners charging easily adjustable money
fees while paying repressed wages. Deflation created by demone-
tized surplus saving would do the opposite. You can bet

employers would not be slow to adjust wages downward in this
scenario. Big Business would never allow it to begin with.
Now we can distinguish between apparent and real inflation.
Don't worry if this paragraph does not immediately make sense.
The next one will help. Apparent inflation occurs by money
supply expansion. Real inflation is caused by a contraction of total
economic wealth. As I will additionally explain later, apparent
inflation warps the medium of exchange perversely at the expense
of workers. Real inflation evenly scales money and equitably
rations total economic value to all individuals. Deflation is simi-
lar. Apparent deflation occurs by money supply perversion. Real
deflation results from real prosperity.
This will make the idea clear. The President just signed into
law the Dougster Act. Effective tomorrow, this law doubles the
face value of all U.S. Dollar currency in every form. Today's
quarter is deemed 50 cents tomorrow. That $5,345.36 in the bank
will be $10,690.72. Likewise, all contractual arrangements are
legally bound to convert to the new dollar units. That $10 an hour
you make is $20 starting tomorrow. That $40 pair of jeans will be
worth $80 in the new money with the old name. Question: Did
you or anyone else make out in the deal? Assume the cost of
enacting this law is nothing for everyone. Now think real hard
'cause I ain't spelling it out any further.
In addition to real and apparent inflation is another dubious
inflationary species. This type is dubious because it is completely
and predisposedly reversible by definition. Social trends will
effect how private surpluses of money are either spent, lent, or
saved. This is not a genuine change in money supply throughout
the economy. Rather, the money flows unevenly between the
collection of all markets where it has velocity and the remainder of
the economy comprising savings not recycled and credit outstand-
ing.
Regarding net flow into the marketplace, savings could never
reduce below zero. Likewise, private debt expansion will eventu-
ally exhaust society's risk tolerance, as with feel-good speculation
precipitating the Great Depression. Regarding net flow out of the
marketplace, debt could never reduce below zero or full repay-
ment. Also, savings could never increase indefinitely because
2.6 What's Yours 85
human consumption is not naturally restrained except by reaching

the limits of production. Economists say people have unlimited
wants.
Therefore, price levels may intemperately go up in times of
optimism or mania, and intemperately down in times of pessimism
or psychosocial depression. The moderation of price levels is a
market correction, and in the case of sizable psychological swings
it will involve a trend reversal of private savings and debt levels.
Let's call emotionally intemperate changes in overall price levels
voguish inflation or deflation. Fluctuation of exchange rates
between types of wealth based solely on net money flow following
cultural trends is a similar concept. The difference is that inflation
is a reflection of all pricing levels, not just the day's hot cake. We
can accommodate the possibility that our cultural mood swings
shift prices at large.
Other times we can credit the Federal Reserve System, a.k.a. the
Fed, for an enforced voguish inflation or deflation. The mechanics
of that inflation have two components. The minor mechanism is
simply the degree to which the regular banking system may create
money via credit. Banking regulations are necessary to prevent a
bank run and protect deposits of the general public. The amount
of money created by the process of regular banking is governed by
bank deposit requirements and by prevailing conditions more or
less economic, nucleated as financial markets, and knotted upon
interest rates. With the privilege of that power the Fed may take in
or let out slack in what money supply there is. The slack of exis-
tent money may be manipulated in a pure sense with deposit
requirements or by interest rates further empowered by the major
mechanism yet to be fully described. Conservative credit encour-
ages savings and thrift. Liberal credit encourages loans, invest-
ment in the private economy, job creation, and extravagance.
Using the cake analogy, voguish inflation is a change in icing
temperature due to changes in mass psychology. Euphoria or
returning confidence heats the icing, increases the molecular
spacing, and lets out slack intrinsic to the icing already on the
cake, more or less evenly. It is analogous to government stimu-
lating the economy by slackening bank deposit requirements,
something quite risky and quite exacting of scruples. The other
way government can encourage private-sector credit is with lower
interest rates, but who would conceive of such a thing as manipu-
lating market forces, our shared economy, and the material under-
pinning of our happy existences? As I am attempting to explain,

interest rates are rates of credit based on capitalistic expectations
within the private sector, the free-market part, adjusted for infla-
tionary expectations stemming from federal deficit spending and
for the competition of federal debt instruments, the fixed part.
Private-sector credit is loosened by the Fed to stimulate cake
production. Members of the Fed describe the economy as ‘over-
heating’ when they raise interest rates to cool things off. If the
temperature is too hot, the icing burns as outstanding credit proves
worthless, and workers stop working. If the temperature is too
cold, the icing freezes as new credit proves prohibitive. Some-
where in the temperate zone, cake is baking cake, meaning wealth
is creating wealth, powered by labor, with enough cake leftover to
feed active workers and capitalists. Somewhere in the temperate
zone, icing is pliable to new cake, and money acts as a medium of
exchange partnering with a sustainable assortment of investments.
The temperature of the icing should not be confused with the
thickness of the icing. The temperature of icing reflects the
proportion of money existent by private credit. Private savings in
some forms, for example U.S. bonds, is a dampener on private
credit because it is diverted from business loans, for better or
worse. The thickness of icing reflects money supply and figures
into the proportion of money to wealth. Neither aspect of the cake
metaphor reflects the possibility of cake shortage. The tempera-
ture of the cake itself represents economic activity generally or
perhaps the energy expenditure of processes attempting wealth
creation specifically. Because wealth can replicate itself only so
fast, the icing can burn. Burnt icing will flake off unless redeemed
by a federally licensed cake decorator. If the icing can't burn,
technology has advanced so far that money is no longer needed to
ration material want. Observe voguish (dubious) inflation has
definite limits modeled by the icing's thermal sensitivity. Real and
apparent inflation may devalue currency indefinitely. A half of
something is never nothing, and thicker is never infinity.
The bottom line: The ideal purpose of money is to be a stable
medium of exchange. Money with a stable value will accurately
measure changes in standard of living. Stable currency will expe-
rience real deflation as technology increases efficiency and
productivity. Fiat money could be stable but in practice is not.
Fiat money is not a trustworthy measure of standard of living over
time. Let me add that real money made of precious metal is a
2.6 What's Yours 87
severe but not perfectly stable medium of exchange. The rescaling

of fiat money by apparent inflation is never even across the board,
like Dougster law would have it. Group think can change the
amount of money applied to markets across the economy by
manipulating savings and debt, more extremely with more irra-
tionality, but the insanity of the self-sufficient has real-world
limits. The Fed manipulates the same socioeconomic tolerance for
credit risk by influencing interest rates. That's a part of the story.
2.7 The Inflation Game
It is not until the prices of the necessaries of life become so dear

that the laboring classes cannot supply their wants out of their
wages, that the wages rise, and gradually reach a justly
proportioned rate to that of the products of their labor.
―President Andrew Jackson
Unlike gold, fiat money slathers without limitation. The

‘slatherers’ of fiat money are the deficit spenders and counterfeit-
ers. Let's focus on government spending only. The spenders and
vendors of monetized debt are the big winners. They use free
money even before the apparent inflation it causes has devalued it.
For all of us, the resulting inflation impacts our lives. But who
wins, who loses, and why?
Real inflation makes an adjustment immediately, when a house
burns down, when petulance wipes out crops, when a ship full of
widgets sinks, when a punk drives over a mailbox, when pick-
pockets thrive. A loss of buying power or wealth is accessed
immediately to the stakeholder effected.
In some cases more than others, society faces a reduced supply
of resources as evidenced in the marketplace. In the dynamic
world of free enterprise, changes in market conditions are normal.
Buyers and sellers only act voluntarily and presumably do not
harm themselves. With a shortage the price of widgets goes up,
reflecting an increase in value that widgets have with respect to
other forms of wealth. When an overall economy is contracting,
less wealth is available and prices generally are pushed higher in
nominal dollars. The standard of living for the typical individual
has gone down. Market forces have automatically adjusted to
enforce an economy wide rationing of affluence because of truly
shrinking material means.
The loss pursuant to the unfortunate stakeholder was never actu-
ally assessed to the rest of society. Put another way, society did
not replace the stakeholders loss. Society simply did not gain
advantage from a stakeholder's investment and continues to
consume affluence as available. The market makes an adjustment
and for everybody else that's that. Only in comparison to the
hypothesized availability of wealth has society lost. In comparison
to the ideal situation, we all lose.
2.7 The Inflation Game 89
Germane adjustments due to apparent inflation involve dissim-

ilar response times. The adjustment to the prices employers charge
happens relatively quickly since market forces are pretty quick,
usually. The adjustment to the prices employers pay, wages my
friend, happens relatively slowly in the job market. Wage earners
are the losers of the inflation game. Rest assured it gets worse.
The worse is more complicated to explain.
2.8 Your Interest, Please
The cause of the workman's condition now is that he is not fully

master of his own destiny, that he is ignorant of most of the facts
which affect his condition, that this condition depends largely on
the foresight or skill or honesty of persons over whom he has no
control, and there is little or no field offered for the display of
extraordinary industry of ability.
―The Nation, New York City, 25 April 1867
That thing called money's interest rate is pretty easy for a national
government's central bank to influence. Our central bank in the
USA is the Federal Reserve System, currently chaired by Ben
Bernanke. The Fed has the large responsibility of setting the all-
important federal funds rate. The federal funds rate is an overnight
lending rate that impacts interest rates banks set for such things as
savings accounts and mortgages. Control of the federal funds rate
is described in subchapter 5.1, “Federal Deficit Spending.” Other
factors effecting bank-set interest rates are investment markets and
the anticipated rate of inflation, but these factors are not directly
controllable by the Fed. Bank rates are important to economic
activity because business development is fueled by business loans.
By regulating business activity via the federal funds rate, the
Fed can aim between Scylla and Charybdis. Shooting the gap
attempts to sustain business growth while invariably monetizing
the debt. You didn't forget deficit spending? Inflation increases the
cost of loaning money and works against business growth in that
respect, unless the business receives the inflationary money of
course. The size of the operational gap, if any, depends on the
strength of businesses and the amount of deficit spending. Now
that you have the elementary concepts, let's analyze the whole
process step by step.
Monetizing the debt sends a shock wave through the economy
from the deficit spenders. Those who quickly recognize the
market force adjust the prices they charge upward and roll with the
punch to limit their damage. The quick responders are typically
business people, the same people government is trying to sustain
anyway. The workers of this country experience a far larger lag
time before increasing what they charge. The spoils of deficit
2.8 Your Interest, Please 91
spending and what net value employers gain by charging more and
paying less is offset by what net value employees lose by charging
less and paying more (as patrons).
If wages and prices increased evenly and together, employers
and employees would fairly share the cost of deficit spending.
However, coordinated price increases could never get society back
to original real earnings because less supply is available. Govern-
ment deficit spending took something for nothing. A shortage
equal to the deficit spending must result if nobody works at a real
discount and real consumption does not change. Shortage repre-
sents a lower standard of living to you because having the same,
old money does not fully translate to available consumption.
Elastic markets correct for the giveaway shortage by enforcing
new prices at a premium above the stagnant earnings of some-
thing-for-something consumers.
By shooting the operational gap during deficit spending, the Fed
targets working Americans to earn the debt-monetized purchases.
Our blood, sweat, and tears really pay for the free ride of the
powerful. The Fed can get more free ride by increasing the
number of exploited workers and by increasing the amount the
average worker is willing to be exploited. These two goals are at
odds. Increasing employment requires increasing the number of
available jobs toward full capacity. Increasing the will to work
(sometimes) for free requires decreasing the number of available
jobs. The maximal blood, sweat, and tears are extracted by a
middle ground of job-prospects shortage. I use the word prospects
because quality is as important as quantity, especially today. The
survival and welfare of unfortunate workers are sacrificed to save
and serve the socioeconomic machinery and a privileged few.
Forget a career. Forget healthcare coverage. Forget retirement. If
the ratcheting is done well, culture budges to normalize lower
living standards. The ‘normal’ people don't know a damn thing
about philosophy, or they would recognize this efficiency as slav-
ery. Philosophy is to merit what science is to power. Know both
or know nothing.
The economy has two aspects: human and technological. The
economy is a cyborg. You use tools and you are a tool. The health
of the economy is more than technical statistics. When technolog-
ical advances are inadequate to cover the extracted costs, the
methodical squeeze requires career spoilage that accumulates over
time. When the technological advances that should accrue to all of
us are not enough, workers are overworked, and after extrusion,

underutilized and underdeveloped. It means employers don't,
won't, and can't bear much cost developing worker's careers nor
hire but a rarity at entry-level positions. I can't help but think of
ourselves and our country metaphorically as the hard-pressed
machine Stephen R. Covey described. Too philosophical?
When economic losses are unsatiated by dismissed workers,
capital is wounded and the economic infrastructure is consumed.
Such does not reflect well on the Federal Reserve. Recession if
not depression is the distasteful outcome. Recessions, character-
ized as a sustained shrinking of the economy, have an associated
pressure of real inflation. Real living standards drop. Recessions
with heavy private investment losses will restore prices downward
to corrected, non-manic levels. Heavy investment losses mone-
tized by the government—investment used loosely—cause
apparent inflation and upward pressure on price levels. The char-
acter of each recession in regard to pricing trends will vary.
Pricing levels can show unequivocal inflation, unequivocal defla-
tion, or anything in between.
The full breadth of the inflation game should now be clear.
Real inflation reduces market supplies because producing individ-
uals suffer loss. Apparent inflation due to deficit spending reduces
market supplies because subsidized consumption imposes loss on
regular consumers. To the extent money supply is altered, money
is a medium of property seizure. Done habitually it institutional-
izes the abuse of fellow Americans. Supply increases of fiat
money are consistent with harmful principles and with disregard
for natural law and natural rights, if we presume to have them still.
To add insult to injury, economists sometimes refer to rising
wages as inflationary pressure. Working Americans are the last
economic contributors to catch up to the new pricing levels and are
vilified as bad for the economy! Actually, rising wages due to
apparent inflation are corrective measures to thwart additional
stealing by passive government force. Don't accept full underem-
ployment as full employment! Insist upon free interest rates, free
markets in general, full quality employment, and equal civic
accountability for destructive fiscal policy.
Unmitigated, widespread prosperity of my nation is something I
would like to witness in my lifetime. The hallmark will be the
promotion of monetary units, a sharp contrast. Imagine retiring
2.8 Your Interest, Please 93
U.S. dollars, denominating American money generally and paper

bills specifically in U.S. cents, and making change in hundredths
of a cent called dougs. Now that's a happy thought!
2.9 The Economic Record
On their shoulders must fall the weight of our national burdens.

The same policy which is driving our poor to pauperism, is
driving this [middle] class to poverty.
―The Old Guard, New York City, February 1864
Note to the Reader: This subchapter presents an analysis more

suitable for pedagogy than counsel. The data presented I fear has
limited value in determining what is happening in terms of the
upper, middle, and lower classes, and overall. In particular, the
income data by quintile does not consider medical benefits.
Additionally, the adjustments to inflation calculation over the
years, important for real dollar comparisons, are not something I
have investigated. Per capita measures are important, and per
capita real GDP would have been nice. Perhaps other important
concerns have been overlooked. I do not have the resources to
be more thorough, but more to the point, this book can only be a
starting point or else a stepping stone. Anecdotal evidence tells
me something more substantial has happened than what the
statistics show, but suspicions are not objective explanations.
Additionally, the data is also a bit dated. The important point is
that you can form an objective opinion however imperfect on
how we are doing as a nation. Evaluate available numbers and
the quality of the sources of those numbers for yourself. You
need not accept the media's opinion at face value. I beseech that
you don't.
One indicator we live in a great country is that the economic

results of our leaders are on public record. The government is
obliged to generate much of it. Don't leave all that knowledge,
power, and spin control in someone else's hands. Statistics in four
areas are key to evaluating Working America's bottom line: infla-
tion, productivity, earnings, and wealth.
U.S. inflation is measured by the consumer price index (CPI)
calculated by the U.S. Bureau of Labor Statistics (BLS). More
than one version is available for a variety of applications. The
commonly used consumer price index for all urban consumers
(CPI–U) is assumed when a version is not specified. Each CPI
datum represents the overall pricing level of a given time based on
a hypothetical basket of goods and services. The utility of the CPI
is not any one datum but the percent change between data over
2.9 The Economic Record 95
time. An annual CPI change of 3 percent means general pricing

levels on average increased by 3 percent in a year's time. Equiva-
lently, inflation was at an annual rate of 3 percent.
Gross domestic product (GDP) is the popular measure of U.S.
productivity—cake enlargement irrespective of consumption—
calculated by the U.S. Bureau of Economic Analysis. Each datum
of GDP represents the economic output of the U.S. over a period
of time in dollars. Again, the important information is the
percentage change over time but filtered of inflation. The result is
the percentage change of real GDP.
Earnings (income exclusively from wages) work like GDP.
Each raw datum is a dollar quantity accumulated over a period of
time, typically for a worker or household rather than the entire
nation. Properties of individual data collections taken at different
times but over similar periods of time can be compared in real
inflation-filtered terms. The Bureau of Labor Statistics calculates
the monthly and yearly average of real weekly earnings for
production and nonsupervisory workers on private nonfarm
payrolls. The monthly variety may be seasonally adjusted.
Changes in the average are available between adjacent months,
months differing by a year, and adjacent years.
As is the case with earnings, income is absolute if measured in
constant dollars such as hypothetically unwavering year-2004
dollars. An absolute value has a magnitude independent of
external considerations. Absolute incomes can be compared to
determine relative incomes. Relative incomes between subgroups
divided by percentile permit comparison of economic classes. For
example, the 20 percent of families with the highest income are at
or above the 80th percentile. Percentiles can be used to delimit
any contiguous subgroup from the sorted order. Members of the
second highest quartile group reach the 50th percentile but not the
75th percentile. The mid-quintile is the middle fifth—those fami-
lies in the top 60 percent and not in the top 40 percent.
A percentile subgroup commands a percentage of total group
income. Changes between subgroup percentages over time are
relative. An overall percentage loss within a subgroup is an equiv-
alent gain outside that subgroup. The U.S. Census Bureau
analyzes annual aggregate family income grouped by quintiles.
Annual percentage data for the third quintile indicates the relative
strength of middle-class income.
From yet another government survey, a summary analysis of net

worth is available by subgroups divided via the 25th, 50th, 75th,
and 90th percentiles. The Federal Reserve Board in cooperation
with the Department of the Treasury sponsors the Survey of
Consumer Finances (SCF). The triennial study (done every three
years) first evaluated conditions of calendar year 1989 and more
recently of 2004.
The official summary after the more recent study computed net
worth figures for all study years in 2004 dollars. A little math
gleans absolute and relative income statistics for the upper, middle,
and lower 50 percent of families by income. Among published
papers using the same internal (confidential) data of the survey are
the same statistics for the lower 50 percent with greater precision
than can be converted from the published results of the study
proper. Both results will be presented shortly.
The division at the 50th percentile obfuscates evaluation of net
worth of the middle class. By definition the middle class is no
more than a third of all families. Without additional public data
the best an outsider can do is mathematically combine the second
and third quarters with the wide swath clouding the portrayal.
Keep in mind the middle 50 percent overlaps with the lower and
upper 50 percents.
Interestingly, families of the annual Forbes list of the richest
400 Americans are excluded from the SCF. Doing so protects the
privacy of individuals whose anonymity would likely be compro-
mised with the release of the public data. A noteworthy statistic
from the Forbes list is the yearly number of billionaires.
So here lies a possible explanation for that malaise. Take a long
gander at a pithy slice of the economic record presented infra by
tables 2.1 and 2.2. This is your last opportunity to make your own
conclusions without the influence of mine.
It should be considered that the income data by quintile is based
on money income before taxation and does not include noncash
government benefits like Medicare and Medicaid nor noncash
employer-provided benefits like healthcare. The trend of reduced
healthcare benefits began circa 1995. Does that change anything?
One more look?
From my perspective the data indicates:

• all classes generally benefited from the economic expansion
of the 1990s,
• the poorest individuals have benefited less and less from the
U.S. economy since 1995,
• the middle class has generally deteriorated since 1988, and
• wage earners are unbolstered by the latest economic expan-
sion begun in 2003.
It is mathematically possible the middle quintile has been
pushed into the next higher quintile by an influx of poor, meaning
the members of the middle class have not suffered a deterioration
in affluence. Whether it is physically possible given the preva-
lence of American wage earners is another matter. You can see
how more thoughtful information could help. Other information
corroborates the plight of employees. Workers of the United
States, like countries in Asia and Australasia, total thousands of
annual hours above workers in many European countries. Wage-
earning Americans may now be working the most in recent history.
The potential cost to workers goes beyond dollars into physiolog-
ical, social, emotional, and intellectual dimensions.
Those who hire are the complement to employees. BLS statis-
tics describe a break down of the 2003 labor force as 88.9 percent
employees, 9.2 percent non-hiring self-employed, and 1.9 percent
hiring self-employed. The ratio of employees to employers in the
work force of 2003 was 48 to 1.
Some business owners are not self-employed at the companies
they own. This is certainly the case with publicly owned compa-
nies. The Internal Revenue Service (IRS) counted about 5,630,246
annual filings of any version of form 940 by U.S. employers—
whether they be taxable individuals or legal entities—for calendar
year 2003. The Federal Unemployment Tax Act (FUTA) requires
nearly all employers to annually file such a form. The aforemen-
tioned BLS data in comparison indicates 1,743,000 self-employed
hirers. So 69 percent of employers must not have been entrepre-
neurs, a.k.a. the self-employed.
At a minimum (the case of only one commanding business
person at every hiring entity) another 4 million individuals must
have a vested business interest as de facto employers. Excluding
legislators, the BLS estimates 2.6 million working top executives
in 2002 and 2.3 million in 2004. That might leave several million
or so of the 291 million U.S. population in 2003 having had
Table 2.1
1988 1989 1990 1991
CPI % 4.1 4.8 5.4 4.2
Real GDP % 4.1 3.5 1.9 -0.2
Real Earn's % -0.9 -1.1 -1.8 -1.6
Lower 5th Income, 9,919 10,289 10,043 9,774
2004 $'s, (%) (3.8) (3.8) (3.8) (3.8)
2nd 5th Income, 25,036 25,599 25,267 24,548
2004 $'s, (%) (9.6) (9.5) (9.6) (9.6)
Mid-5th Income, 41,873 42,553 41,736 40,775
2004 $'s, (%) (16.0) (15.8) (15.9) (15.9)
4th 5th Income, 63,297 64,366 62,926 62,157
2004 $'s, (%) (24.2) (24.0) (24.0) (24.2)
Upper 5th Income, 120,840 125,823 122,116 119,193
2004 $'s, (%) (46.3) (46.8) (46.6) (46.5)
Lower ½ Net Worth, 16,400
2004 $'s, (%) (3.0)
Mid-½ Net Worth, 82,000
2004 $'s, (%) (15)
Upper ½ Net Worth, 528,700
2004 $'s, (%) (97)
Billionaires
private ownership of but not employment in a business with
employees. The bottom line: In 2003 at least 5.6 million individ-
uals or 2 percent of the population had special interest from an
employer's perspective.
I don't presume all of that minimal 2 percent are rich. I do
presume much of the very rich have vested interest from an
employer's perspective. Business ownership is generally accepted
as the usual path to money and power. The richest 1 percent of
U.S. families control about a third of U.S.-owned wealth. The
richest 5 percent control about half. With that kind of wealth
concentration, consideration of what population beyond the 2-
percent minimum might be direct employer beneficiaries is not
relevant to purchasing political power. That wealthiest 1 percent
to 5 percent of families are likely dominated by the wealthiest of
the employer-based special interests derived from 1.9 percent of
the labor force and 2 percent of the population. We can safely
A U.S. Economic Record (1988–1996)

1992 1993 1994 1995 1996
3.0 3.0 2.6 2.8 3.0
3.3 2.7 4.0 2.5 3.7
-0.2 0.1 0.7 -0.6 0.4
9,574 9,474 9,725 10,272 10,303
(3.8) (3.6) (3.6) (3.7) (3.6)
23,988 24,016 24,237 25,107 25,289
(9.4) (9.0) (8.9) (9.1) (9.0)
40,415 40,257 40,830 41,980 42,537
(15.8) (15.1) (15.0) (15.2) (15.1)
62,041 62,562 63,536 64,533 65,835
(24.2) (23.5) (23.4) (23.3) (23.3)
120,213 130,345 133,572 134,671 138,466
(46.9) (48.9) (49.1) (48.7) (49.0)
16,300 18,700
(3.3) (3.6)
76,300 80,100
(16) (15)
475,000 502,700
(97) (96)
179
assume the same wealthiest families are not founded on a vested
interest in the common labor-market segments from an employee's
perspective.
The recent net worth trends in subgroups other than the lower,
mid, and upper 50 percent are available. An SCF working paper
shows the relative percent changes in net worth from 2001 to 2004
of percentile subgroups 0–50, 50–90, 90–95, 95–99, and 99–100 to
be -0.3, 0.5, -0.1, -0.9, and 0.7, respectively. The paper also shows
net worth has generally consolidated among the wealthiest 5
percent over the SCF years—triennially from 1989 to 2004—
having successive portions of 54.2%, 54.6%, 55.9%, 57.7%, and
57.5%.
Table 2.1 (continued)

1997 1998 1999 2000
CPI % 2.3 1.6 2.2 3.4
Real GDP % 4.5 4.2 4.5 3.7
Real Earn's % 2.2 2.5 1.0 0.4
Lower 5th Income, 10,374 10,674 11,238 11,141
2004 $'s, (%) (3.6) (3.6) (3.6) (3.6)
2nd 5th Income, 25,935 26,952 27,595 27,818
2004 $'s, (%) (8.9) (9.0) (8.9) (8.9)
Mid-5th Income, 43,632 45,098 46,190 46,325
2004 $'s, (%) (15.0) (15.0) (14.9) (14.8)
4th 5th Income, 67,580 69,748 71,889 72,014
2004 $'s, (%) (23.2) (23.2) (23.2) (23.0)
Upper 5th Income, 144,080 147,595 153,305 156,054
2004 $'s, (%) (49.4) (49.2) (49.4) (49.8)
Lower ½ Net Worth, 19,800
2004 $'s, (%) (3.0)
Mid-½ Net Worth, 95,400
2004 $'s, (%) (15)
Upper ½ Net Worth, 635,200
2004 $'s, (%) (97)
Billionaires 220 239 307 298
Together those facts intimate an economic order emerging from
the economic expansion begun in 2003:
• A poor welfare and wage-earning class of roughly three-fifths
is getting poorer.
• A privileged business and professional class of roughly two-
fifths is changing unevenly.
• A top 1 to 5 percent are getting richer.
• A special interest among employer beneficiaries comprising
less than 2 percent of the total U.S. population could be
driving down real earning at the expense of the poorest 60
percent.
A U.S. Economic Record (1997–2005)

2001 2002 2003 2004 2005
2.8 1.6 2.3 2.7 3.4
0.8 1.6 2.7 4.2 3.5
-0.1 1.3 0.0 -0.4 -0.6
10,816 10,494 10,265 10,264
(3.5) (3.5) (3.4) (3.4)
27,177 26,680 26,368 26,241
(8.7) (8.8) (8.7) (8.7)
45,490 44,959 44,759 44,455
(14.6) (14.8) (14.8) (14.7)
71,324 70,720 70,849 70,085
(23.0) (23.3) (23.4) (23.2)
155,766 150,988 151,031 151,593
(50.1) (49.7) (49.8) (50.1)
23,500 22,900
(2.8) (2.5)
111,800 116,300
(13) (13)
819,100 873,600
(97) (97)
266 225 262 313 374
The recent drop in real earnings is not unprecedented. The
statistics of CPI, real GDP, and real earnings in 2004–2005 are
similar to 1988–1989. The U.S. poverty rate has through 2004
increased each year since bottoming in year 2000 at 11.3 percent,
rebounding to the not historically high value of 12.7 percent.
Keep in mind poverty in America includes a microwave oven, a
cell phone, and the opportunity to walk into a McDonald's. How
many Somali warlords can walk into a McDonald's? For our
nation's economy as a whole, the sky in not falling—well, that was
true in 2006 when I researched and wrote that analysis. Now in
early 2009 I'm not so sure.
2.10 A Case Study
With our global economy, where anything can be made anywhere

and sold everywhere, the supply of cheap, often well-educated
labor in the third world is having a big effect on first-world
wages. One month's wages for a Seattle software engineer gets
the same company an equally good engineer in Bangalore, India,
for a year.
―Lester Thurow, economics columnist and professor
In other words, you can get a competent, effective, well-educated
Indian engineer for 1/12th of the wages you pay Americans, an
Indian software engineer.
―Representative Robert Odell Owens, D-New York, 11th district
“It's the economy, Stupid!” That mantra, derived from the 1992
campaign strategy of James Carville, ushered in the 1990's busi-
ness cycle expansion. Notice how annualized percentage change
of real GDP in table 2.1 demarcates the expansion. The GDP
provides an indication of how the cake is doing. From 2003 to at
least 2005 the cake seems to have been doing pretty well.
The Internet titillated American culture in 1995. The boom was
on. Anything dot com was chic. Geeks were cool. Actually, they
were hot. Interwoven Inc. offered BMW Z3 sports cars as signing
bonuses! The rules of the business game were rewritten. The
greater fool theory was on.
Eventually, all that cake we thought was cake was only smoke
and mirrors. Recession is pragmatically defined as a contraction
in terms of GDP. The Bureau of Economic Analysis of the U.S.
Department of Commerce tracks such economic developments.
This quote is from the Bureau's 10 December 2003 news release
“National Income and Product Accounts Comprehensive
Revision”:
Business cycles. From the fourth quarter of 2000 to the third
quarter of 2001, real GDP decreased 0.5 percent; in the previously
published estimates, it decreased 0.6 percent. In the revised esti-
mates, real GDP also decreased slightly in the third quarter of
2000.
2.10 A Case Study 103
The NASDAQ Composite Index also is a good indicator of the

tech bust. The all-time closing high of 5048.62 occurred on 10
March 2000. The first time thereafter that the NASDAQ closed
under 3000 was on 13 November 2000, at 2966.72. The low of the
bust was 1114.11 on 9 October 2002.
Some argue the economic downturn in 2000–2001 was not a
recession because a decline in real GDP did not occur for two
consecutive quarters. The NASDAQ indicates a more substantial
economic decline than does the GDP. The difference could be
explained by a massive loss in misappropriated savings repre-
senting past and not then current production. Stock market invest-
ment is not exactly business investment. How was your business
today?
The overall inflationary character of the 2000–2001 recession is
a feeble deflationary pressure as indicated by the milder CPI infla-
tion rates of 2001 and 2003 in table 2.1. Perhaps there was more
lost savings and exuberance (deflationary correction) than lost
economic value via spurious production and indulgent consump-
tion (real inflation). From fiscal years 1998 to 2001, the annual
federal budget had a surplus (apparent deflation) flanked by years
of deficit spending (apparent inflation).
The point I want to make is that by embracing manic dot-com
business attitudes, we created a false sense of prosperity and the
physical world moved to make a correction. Elastic markets of
free enterprise work like ecologies. The difference is a medium of
wealth exchange reckoned in currency rather than a medium of
caloric exchange reckoned in organic matter.11 The ridiculous
increase in wages for technology personnel should have made
executives think twice about grand schemes. That was nature's
way of fixing the problem.
11 Blood is to currency as wealth is to calories: fuel is simply the original,

quintessential wealth. Politicians prey upon economic ineptitude by
equating economic blood with economic calories. Monetary stimulus pack-
ages are intravenous injections of calorie-free stimulant delivered by
glucosic exchange: what is administered is a blood-sugar thinner. Exponen-
tial growth of material technology has disguised and permitted the epidemic
growth of social corruption in the United States, if not the West generally.
The former cannot outrun the latter on physical merits, and human cogs are
so much clockwork Universe. The ignorant never perceive the eventual
creep of economic lethargy. The domesticated feel only the satiation of
addiction, for a time every time until the last time.
Some members of Congress thought they knew better and began

to import cheap, high-tech labor in earnest. This move was in
violation of free enterprise and fair trade. In a free global job
market, businesses allocate work demands across competing job
markets gravitating to optimal global balance as per figure 2.4.
Instead with the Congressional contrivance, foreign countries gain
workers' prerogatives of the U.S. job market, and the United States
gains employers' prerogatives of the foreign job market. Foreign
workers may compete for prosperous American jobs, but not
equally potent is the reverse. American businesses don't even have
to move. The effect is to artificially raise wages in foreign coun-
tries while lowering wages here. If you want to make a haven for
Big Business, that's how you do it.
Chapter 3
ALIENS AND NATIONALS
101
3.1 Gentle Perversions
It will not do, merely because we find an excess of labourers at

the present moment, to charge that excess upon God and nature,
and to treat it as an evil against which legislators ought to
provide. The natural cupidity and selfishness of man, indeed, if
left unchecked by the power of law, will soon produce this very
surplus: and in this way it may be called a natural evil.
―Fraser's Magazine, London, March 1833
In case there is any doubt, there are several safeguards that
ensure American jobs will not be displaced by these increases.
―Senator Jesse Helms, R-North Carolina
How do we expect America to remain competitive if our
companies, who often face labor shortages in this country, can't
recruit the best talent and top notch researchers from abroad?
―Senator Helms, a day later
Note to the Reader: The subchapter-level section “Legislative

Web Resources” of the top-level section “Further Review”
located after these chapters summarizes the artifacts and legisla-
tive process of federal law generally, the portions thereof rele-
vant to this treatise, and the Web resources publishing them.
The first legislative salvo from Big Business to differentiate the

job market of today was the Immigration Reform and Control Act
(IRCA) of 1986 legalizing 2.7 million aliens who became eligible
105
106 3. ALIENS AND NATIONALS 101
for citizenship in the 1990s. The back-door technique of hiring

illegal aliens with a potential for amnesty proves effective in the
unskilled labor market. Skilled labor requires a front-door tech-
nique that can as easily secure more unskilled labor.
The front door is governed by the Immigration and Nationality
Act (INA) of 1952. That legislation, however controversial in
other respects, rightly created the first comprehensive body of U.S.
immigration law. By a series of later amendments, the gaping INA
front door has been decades in the making. The Act of 7 April
1970 created the intracompany transferee L class visa, modified
the H–1 subclass of visa, and made it easier for exchange visitors
to adjust to a different nonimmigrant status or to permanent resi-
dent status by altering the two-year residency requirement.
Preceding the 1990–1991 recession, the Immigration Act of 1990
was ostensibly enacted in large part to address labor shortages.
Here is how it happened. On 7 February 1989 Senator Edward
Kennedy (D-Massachusetts) already with co-sponsor Alan
Simpson (R-Wyoming) introduced Senate bill 358 (S. 358) the
Immigration Act of 1989. The new bill was designed to increase
immigration of skilled and shortage workers. The existing total
annual immigration ceiling of 290,000 set by an act of 5 October
1978 (Pub. L. 95–412, 92 Stat. 907) would be replaced by annual
ceilings for family-connection immigrants of 440,000 and inde-
pendent immigrants of 150,000. The independent immigrants
would qualify as workers for skilled and shortage occupations
except for miscellaneous ‘special immigrants’ allocated 5 percent
of limited openings and for ‘employment creation’ investors allo-
cated the larger of 4 percent or 5,000. The investor qualification
would be for immigrants starting businesses that will hire no less
than 10 full time workers. Hiring immigrants constituting 4 of
every 100 working immigrants must each hire 24 to maintain
balance.
Senate amendments were made but these changes would be
superseded by (unless repeated in) requirements of the House.
Bruce Morrison (D-Connecticut, 3rd) introduced 19 March 1990
bill H.R. 4300 that also addressed labor shortages. For about a
month thereafter, the bill was amended by the Subcommittee on
Immigration, Refugees, and International Law of the House
Committee on Judiciary. The subcommittee consisted of
Chairman Bruce Morrison, Barney Frank (D-Massachusetts, 4th),
Charles Schumer (D-New York, 10th), Howard Berman (D-Cali-
3.1 Gentle Perversions 107
fornia, 26th), John Bryant (D-Texas, 5th), Romano Mazzoli (D-

Kentucky, 3rd), Lamar S. Smith (R-Texas, 21st), Bill McCollum
(R-Florida, 5th), D. French Slaughter, Jr. (R-Virginia, 7th), and
Hamilton Fish, Jr. (R-New York, 19th). Available evidence
circumstantially but strongly indicates the subcommittee mark-up
sessions are where the House provisions regarding H–1B and L–1
nonimmigrant visas originated. The resulting Immigration Act of
1990 was the body of the House bill 4300, as amended for Senate
consent, repackaged as Senate bill 358.
Of particular importance, the Immigration Act of 1990 modified
the H–1B visa program from fiscal year 1992 onward by adding an
annual cap set at 65,000 and by changing recipients from persons
‘of distinguished merit and ability *x*x* coming temporarily
*x*x* pursuant to an invitation from a public or nonprofit private
educational or research institution or agency in the United States to
teach or conduct research’ to persons ‘to perform services *x*x* in
a specialty occupation *x*x* and with respect to whom *x*x* the
intending employer has *x*x* an application.’ Also it expedited
the L–1 application procedure with government processing dead-
lines and a new blanket petition to reduce paperwork for the larger
employers.
3.2 Dot Com Refrain
Immigration should not be our principle public policy response to

temporary labor shortages.
—Alexis Herman, Secretary of Labor
It is shameful that U.S. workers do not have the skills to compete
for these [good middle class] jobs.
—Senator Edward Moore Kennedy, D-Massachusetts
The list goes on and on. Many of the nation's high-tech firms are
blatantly turning away qualified U.S. workers while appealing to
Congress for more foreign workers.
—Senator Kennedy, roughly three minutes later
History repeated itself less that a decade later on 21 October 1998

when President Clinton signed the Omnibus Consolidated and
Emergency Supplemental Appropriations Act, 1999. Within the
Omnibus Act was the American Competitiveness and Workforce
Improvement Act of 1998 (ACWIA 1998). This act temporarily
raised the annual cap of the H–1B nonimmigrant work visa from
65,000 to 115,000 in fiscal years 1999 and 2000, and to 107,500 in
2001. Once again a bill from the Senate was reconciled with a bill
from the House.
Spencer Abraham (R-Michigan) introduced on 6 March 1998
bill S. 1723 the American Competitiveness Act already with co-
sponsors Mike DeWine (R-Ohio), Orrin Hatch (R-Utah), John
McCain (R-Arizona), and Arlen Specter (R-Pennsylvania). In the
findings section is Abraham's formulation of the motivating princi-
ples. Here is a sampling:
(10) It is vital that more American young people be encouraged
and equipped to enter technical fields, such as mathematics, engi-
neering, and computer science.
(11) If American companies cannot find home-grown talent, and if
they cannot bring talent to this country, a large number are likely
to move key operations overseas, sending those and related Amer-
ican jobs with them.
(12) Inaction in these areas will carry significant consequences for
the future of American competitiveness around the world and will
seriously undermine efforts to create and keep jobs in the United
States.
3.2 Dot Com Refrain 109
Lamar Smith (R-Texas, 21st) introduced bill H.R. 3736 Work-

force Improvement and Protection Act of 1998 to the House on 28
April 1998 without having co-sponsors. The introduced bill
provided the temporary increase of the H–1B cap to 95,000 in
fiscal year 1998, 105,000 in fiscal year 1999, and 115,000 in fiscal
year 2000.
Two aspects of the ACWIA 1998 demonstrate the hypocrisy
surrounding the dropped word ‘Protection’. The law created the
H–1B Technical Skills Training Grant Program funded by 56.3
percent of the total proceeds from a fee of $500 per application
(not per job opening or worker) paid by employers. Another
symbolic gesture is still evident, albeit not verbatim, in INA 212
and 8 U.S.C. 1182 subparagraph (n)(1)(G)(i). Senator Edward
Kennedy (D-Massachusetts) introduced Senate amendments (S.
Amdt.'s) 2417 and 2418 purporting to ensure qualified American
workers are not undercut—as in training your foreign replacement:
(E)(i) The employer, prior to filing the application, has taken
timely, significant, and effective steps to recruit and retain suffi-
cient United States workers in the specialty occupation in which
the nonimmigrant whose services are being sought will be
employed. Such steps include good faith recruitment in the United
States, using procedures that meet industry-wide standards,
offering compensation that is at least as great as that required to be
offered to nonimmigrants under subparagraph (A), and offering
employment to any qualified United States worker who applies.
I wonder why businesses would pay as much to foreign workers
in ‘good faith’ and additionally pay the H–1B application fees.
Business people do not do stupid this plain. Politicians are not this
plain stupid. They just think you are.
3.3 Era of Cannibalism
Raising the cap for foreign workers without addressing our

domestic job training needs would be a serious mistake. We
cannot and should not count on foreign sources of labor
indefinitely. It is unfair to U.S. workers, and the supply of foreign
workers is limited.
—Senator Edward Moore Kennedy, D-Massachusetts
Finally, in 1986 we adopted an amnesty provision, and that was
supposed to be the final granting of amnesty. Now we are back
trying to renegotiate the deal. The point is, every time we grant
one of these amnesty provisions, we say to people all over the
world: Violate the law, come to America illegally, and you will
ultimately be rewarded for it.
—Senator Philip William Gramm, R-Texas
ACWIA's bigger brother boldly announced today's wanton Era of

American Affluence Cannibalism. Orrin Hatch (R-Utah) intro-
duced on 9 February 2000 bill S. 2045 American Competitiveness
in the Twenty-first Century Act of 2000. This bill already had co-
sponsors Spencer Abraham (R-Michigan), John Ashcroft (R-
Missouri), Robert Bennet (R-Utah), Sam Brownback (R-Kansas),
Mike DeWine (R-Ohio), Dianne Feinstein (D-California), Slade
Gorton (R-Washington), Bob Graham (D-Florida), Phil Gramm
(R-Texas), Rod Grams (R-Minnesota), Chuck Hagel (R-
Nebraska), Joseph Lieberman (D-Connecticut), Trent Lott (R-
Mississippi), Connie Mack III (R-Florida), Mitch McConnell (R-
Kentucky), Don Nickles (R-Oklahoma), Gordon Smith (R-
Oregon), Arlen Specter (R-Pennsylvania), and John Warner (R-
Virginia). The stated purpose of the new bill was ‘to amend the
Immigration and Nationality Act with respect to H–1B nonimmi-
grant aliens.’ It sure did.
The original provisions would have reduced the annual H–1B
cap from 115,000 to 80,000 in fiscal year 2000, and from 107,500
to 87,500 in fiscal year 2001. In contrast, it also would have raised
the annual cap of fiscal year 2002 from 65,000 to 130,000. The
net gain would have been a teentsy-weentsy 10,000 not counting
the first H–1B cap loophole. The initial version exempted those
hired by a university, nonprofit research organization, or a govern-
ment research organization; and those nearly or recently graduated
3.3 Era of Cannibalism 111
with an advanced degree from a U.S. institution. In the end, the

enacted exemption would only apply to the three types of
employers, not advanced-degree graduates.
On 7 September 2000 the General Accounting Office (GAO)12
issued a report to and as requested by Patsy T. Mink (D-Hawaii,
2nd). She was the ranking minority member on the Subcommittee
on Criminal Justice, Drug Policy, and Human Resources of the
House's Committee on Government Reform. The report was titled
“H–1B Foreign Workers: Better Controls Needed to Help
Employers and Protect Workers.” This report estimated some-
where between 21,888 to 23,385 H–1B visas were issued over the
115,000 cap of 1999 and cautioned of a potential for ‘program
noncompliance or abuse.’ Copies of the report were sent to Alexis
Herman (Secretary of Labor) and Janet Reno (Attorney General)
among others.
Merely days later, on the 22nd, Trent Lott introduced for
sponsor Spencer Abraham S. Amdt. 4177 having a purpose ‘of a
perfecting nature.’ This approved amendment established the
annual cap levels for fiscal years 2000, 2001, and 2002 at 195,000
foreign workers. The net gain over existing law was slated at
297,500, a gain of nearly 30 times the supplanted provision. Addi-
tionally, the Abraham amendment retroactively raised the cap of
fiscal year 1999 by the visas exceeding that cap. The wording was
laughable. They didn't know how many over that was.
The Abraham amendment was accepted on the 26th. As the
subsequent Senate action, Orrin Hatch with Edward Kennedy and
Spencer Abraham introduced what would be the last bill S. 2045
modification, S. Amdt. 4275. The annual caps of 195,000 were
shifted one year later, exposing the 115,000 cap of 2000 and
replacing the 65,000 cap of 2003. Brilliant. The net gain over
existing law became 347,500.
Yet the real genius of the Hatch patch was the exception derived
from that of fiscal year 1999. This one retroactively raised the
limit of H–1B visas for fiscal year 2000 (October 1999–September
2000) by the amount of aliens over that year's cap subsequently
approved from petitions filed before 1 September 2000.
12 The General Accounting Office has been renamed the Government

Accountability Office since the GAO Human Capital Reform Act of 2004
was enacted on 7 July 2004, but either way the applicable acronym is GAO.
To both Senate amendments 4177 and 4275 the Senate agreed

by unanimous consent. The members present can be inferred by
record of vote number 260 Cloture on the Abraham amendment
4177 of 28 September 2000. You could investigate your senators'
records using the Thomas portal of the Library of Congress.
The House passed verbatim the Senate offering. On 17 October
2000 by the pen of Bill Clinton, ACWIA 2000 became law. In less
than a month would be a presidential election, a beleaguered Elec-
toral College, and a contradictory popular vote. What career
losses would Congressional leaders bear for betrayal of working
Americans with a looming election? Basically nada. In the House
394 of 403 incumbents were re-elected; in the Senate, 23 of 29.
3.4 2006 Chicanery 113
3.4 2006 Chicanery
The reason is plain. Immigration has not only been unchecked

but it has been unduly forced beyond its natural proportions.
—Olney Searles, North American Review, New York, March 1888
It is estimated that 400,000—yes, you heard me, 400,000—illegal
aliens have been ordered deported by an immigration judge but
have disappeared, have faded into, have blended into the interior
of the country.
—Senator Robert Carlyle Byrd, D-West Virginia
We are a country of immigrants, of course.
—Senator Kathyrn Bailey Hutchison, R-Texas
I heard all of this discussion in this Chamber now for 2 weeks
about immigration: immigration, immigrants, illegal immigrants,
legal immigrants—all about immigration. Where is the discussion
about the American worker?
—Senator Byron L. Dorgan, D-North Dakota
Bill S. 2611 Comprehensive Immigration Reform Act of 2006 was

introduced by Arlen Specter (R-Pennsylvania) on 25 May 2006
with co-sponsors Sam Brownback (R-Kansas), Lindsey Graham
(R-South Carolina), Chuck Hagel (R-Nebraska), Edward Kennedy
(D-Massachusetts), Mel Martinez (R-Florida), and John McCain
(R-Arizona).
The provisions proposed a new H–2C visa ‘Nonimmigrant
Temporary Program’ with an allowable stay up to six years in two
increments of three years. The annual cap would have been set to
325,000 the first year. The cap would have risen by 20, 15, or 10
percent immediately upon reaching the cap in the first, second, or
third quarters of a fiscal year, respectively. If reached in the fourth
quarter, the cap would have been raised by 10 percent beginning
the following year. If the cap would not have been reached in a
year after the second fiscal year of the program's implementation,
the cap would have been lowered by 10 percent the following year.
The employer of the H–2C visa holder at any time, and the H–2C
visa holder after four years could have applied to adjust said hold-
er's status from nonimmigrant H–2C visa to an employment-based
immigration visa. A legal permanent resident of five years is
eligible for citizenship per section 316 of the INA codified as 8

U.S.C. 1427. That puts the ‘temporary’ into temporary guest
worker.
The nonimmigrant intracompany transferee L–1 visa would
have been modified to grant employers probationary permission
for 12 months to hire L–1 visa workers for the purposes of a
proposed new business.
The new nonimmigrant student F–4 visa would have allowed
foreign students to earn an advanced degree in mathematics, engi-
neering, technology, or the sciences at a U.S. institution with or
without the intent of permanent residency. Upon graduation, they
could have applied for permanent residency subject to numerical
limitations. They could also have sought employment under a
nonimmigrant visa and become eligible for permanent residence
after three years of such employment without numerical limitation.
This act would also have raised the worldwide level (i.e. annual
cap) on employment-based immigration from 140,000 to 450,000
for fiscal years 2007–2016 and then to 290,000 thereafter. An
exception would have applied to workers in ‘shortage occupations’
as designated by the Secretary of Labor along with such workers'
spouses and dependents until 30 September 2017. Another would
have exempted from the worldwide level employment-based
immigrant visas for aliens who have earned an advanced degree in
science, technology, engineering, or math and have been working
in a related field in the U.S. under a nonimmigrant visa for three
years. Again spouses and minor children of such immigrants
would have been exempted too.
Some provisions were wholly embedded acts. The Agricultural
Job Opportunities, Benefits, and Security (AgJOBS ) Act of 2006
would have established a pilot program (Blue Card program) for
adjustment to permanent resident status of qualifying agricultural
workers. The Development, Relief, and Education for Alien
Minors (DREAM) Act of 2006 would have granted conditional
permanent residency to certain illegal aliens who came to the
United States as minors and thereby the opportunity for federal
student financial aid. Basically, the requisite for earning perma-
nent permanent residency would roughly have been earning a
college degree.
Those are highlights of what the initial bill was. The Heritage
Foundation published a study dated 15 May 2006 titled “Senate
Immigration Bill Would Allow 100 Million New Legal Immigrants
3.4 2006 Chicanery 115
over the Next Twenty Years.” The study estimate was actually 103
million over the next twenty years with a maximum potential of
nearly 200 million. The U.S. population in 2006 was nearly 300
million according to the CIA's World Factbook of that same year.
Low and behold S. Amdt. 3981 proposed by Jeff Bingaman (D-
New Mexico) and agreed to by the Senate on 16 May 2006 would
have revised the H–2C cap to 200,000 during any fiscal year. The
revised estimate by The Heritage Foundation became 66 million,
but the political wrangling was not over.
Deliberations continued in the Senate for about a week culmi-
nating in a grand finale 25 May 2006. That day Arlen Specter
proposed and Kennedy co-sponsored S. Amdt. 4188. The as-
amended monster S. 2611 passed the Senate for consideration by
the House. Record vote no. 157 shows the respective votes yea-
nay-uncast as 23–32–0 by Republicans, 38–4–2 by Democrats, and
yea for the lone Independent Jim Jeffords (I-Vermont). Potential
presidential candidates from the Senate who voted yea were Joe
Biden, Hillary Clinton, Bill Frist, John Kerry, and John McCain.
The breakdown for those seeking re-election in 2006 was 17–13–0
(57% yea) and for other Senators was 45–23–2 (66% yea).
If enacted, section 117 of S. Amdt. 4188 would have required
the Secretary of State and others to interact with the Mexican
government to cooperate on border security, consult about
proposed fence building, educate Mexicans about opportunities
with U.S. nonimmigrant programs, and provide job training for
Mexicans. Legal assistance afforded agricultural workers holding
H–1A visas per section 305 of the Immigration Reform and
Control Act of 1986 would have been expanded to include forestry
workers holding H–1B visas.
The meat of the Specter amendment was the Securing Knowl-
edge, Innovation, and Leadership (SKIL) Act of 2006. It proposed
a mechanism to automatically raise the H–1B cap. In the first
fiscal year after the date of enactment, the cap would have been
reset from 65,000 to 115,000 and thereafter increased by 20
percent every year following a year the cap is reached. The cap
would never have decreased.
The embedded SKIL Act also aimed to expand the H–1B cap
loopholes. The exemption for nonprofit research organizations
would have transformed into one for nonprofit organizations. The
exemption for governmental research organizations would have
been redefined as federal, State, and local governmental research
organizations. The exception capped at 20,000 for holders of

advanced degrees from U.S. institutions would have been
creatively split. The change would have uncapped the exception
for advanced degrees from U.S. institutions, and capped at 20,000
holders of advanced degrees from foreign institutions.
Before S. Amdt. 4188, Christopher Bond (D-Missouri) with
Judd Gregg (R-New Hampshire) submitted S. Amdt. 4071, using
the proposed F–4 visa as a template. Like the F–4, a new J–STEM
visa would have applied to foreigners studying for an advanced
degree in science, technology, engineering, or math (STEM) at a
U.S. institution. The proposed path to citizenship was the same.
Unlike the F–4, the J–STEM visa would have permitted U.S.
Government sponsorship of foreign students. The provisions of
the tabled S. Amdt. 4071 were included in S. Amdt. 4188.
Certain provisions of S. 2611 are related to the supply of health-
care workers. From the outset, this bill would have required the
Secretary of Health and Human Services to submit a report to
Congress by 1 January 2007. This report would have recom-
mended ways to increase the supply of licensed nurses and phys-
ical therapists from foreign countries. The added SKIL Act would
have exempted physicians ‘awarded medical specialty certification
based on post-doctoral training and experience in the United
States’ from the worldwide level limit of employment-based immi-
gration visas and from the cap of the nonimmigrant H–1B employ-
ment visa.
Careers in the information technology industry have already
been shattered wholesale. By targeting the ripest of labor
segments, Congress is systematically plowing under the American
Dream in the heartland. In 2009 the ripest fruit may just be U.S.
healthcare. Besides the workers, there are the patients to consider.
Civic mastery stat! and ‘fixing’ a co-domineering political party
ain't that.
Chapter 4
SOCIOPSYCHOLOGICAL
CANONS,
PSYCHOPHYSIOLOGICAL
NECESSITY
4.1 Definition of Rich
Why is it that everywhere we hear complaints that there is no

society? that nobody seems to care for any one but themselves?
that a kind of mutual sympathy and helpfulness which existed not
half a century ago is hardly to be met now?
—The Galaxy, New York, October 1868
So you wanna be rich? What do you think that is? How do you
want to get it? If you want something for nothing, you want
poverty to deserve wealth. Is getting lucky a life plan?
Gamblers and many investors are players in a zero-sum game.
Nothing is created nor intrinsically deserved by the players as a
group. The zero-sum hallmark is a mechanism of property seizure
guaranteeing losses equal to winnings. No danger here of more
cake, real deflation, or general benefit to society.
In the game of life, having money is richness only on the finan-
cial scale. That kind of richness though important is one dimen-
sional, insubstantial, and easily overlooked. From the ends a line
looks like a point. In the real world an infinitely small point of
117
118 4. SOCIOPSYCHO. CANONS, PSYCHOPHYSIO. NECESSITY
relevance is pure non-dimensional, non-existent poppycock. If

you strive to be zero dimensional from any perspective, you will
flounder.
Life happens in multiple dimensions. We think in four physical
spacetime dimensions. Physicists hypothesize the number of
spacetime dimensions are many more using String Theory. What
about the psychological, social, intellectual and spiritual domains
where we live? Does richness in one flimsy dimension have
value?
Value in real life means having richness on several dimensions.
It means not bearing a damnable weakness designed into your
being from the word go. Intrinsic individual wealth that you and
others value as your being is nucleating wealth, that attracts more
wealth.
4.2 Objectifying and Commoditizing 119
4.2 Objectifying and Commoditizing
For the first two-thirds of the twentieth century a powerful tide

bore Americans into ever deeper engagement in the life of their
communities, but a few decades ago—silently, without warning—
that tide reversed and we were overtaken by a treacherous rip
current. Without at first noticing, we have been pulled apart from
one another and from our communities over the last third of the
century.
—Robert D. Putnam, political scientist
When Walter Kronkite said, “and that's the way it is,” we believed
him. He proved his objectivity with an intelligent skepticism. Not
only did he cull what he would say but also what he would not
leave unsaid—Vietnam, Watergate, and more. Walter retired from
his anchor position in 1981. Judging by evidence to include a
cursory search of online book offerings, ‘politically correct’
thought, or at least the term, went mainstream in the early 1990s.
Our expectations of social coping skills had been dropped.
Personal values and value had been redefined. Something substan-
tial must have happened.
The 1984 debut of television show Lifestyles of the Rich and
Famous introduced American masses to riches of extreme materi-
alism. Rap exploded in 1986 with ornate gold chains and a less
than friendly coastal rivalry. Suggestive of this rivalry are the
murders of Tupac Shakur in 1996 and The Notorious B.I.G in
1997. At the dawn of the 21st century, bling was the thing: it was
the sound that light off a diamond would bring. Today football
players have diamond earrings bigger than knuckles—and they
prance for tribal glories.
Arguably, prevailing American culture has adopted the ideal of
rich from our most destitute communities. If so, the results have
been predictable. An effective definition of rich cannot value one's
self and others simply as objects and commodities. Objectifying
and commoditizing have their place in this globalized world, but
that still leaves room for riches of the past. We might rather have
done better financially in that past too. How did your parents do?
4.3 Circular Theological Reasoning
I know nothing except the fact of my ignorance.

—Socrates
Circular theological reasoning goes like this:

1) I believe in God.
2) God declares X.
3) X is irrefutable.
Circular reasoning is fallacy, yet perception is reality. Is seeing
believing? Not with subjective colors. Not with the ultraviolet
light bees see but we don't. Human psychology has its design
strengths and limitations. Some design aspects are physiological
(hardware), and others are psychological (software). What we
perceive and believe does contain falsehoods and does omit truths.
Rational skepticism of one's beliefs is a sign of psychological
competency. Without skepticism you won't grow much.
Circular reasoning and ideology have been part of American
culture before it was even instituted as a nation's culture. The
Salem witch trials underscore how far ideology can go. Republi-
cans have debased gay marriage, flag burning, nationalization of
the English language, and most importantly capitalism into
simpleton issues beneath the intelligence of many simpletons.
Democrats, now seen as a life raft, have touted the minimum wage
and justice by welfare. The real issues cleaving our country along
values and livelihood might not be addressed while the ideological
issues are more politically viable. Without personal skepticism we
won't delve into the facts. Nor will we fix much either.
Whatever your personal beliefs, the critical things for success
are the critical things for success. It's axiomatic from the defini-
tion of ‘critical’. In the long term, you will be successful if you do
all the critical things right, and you will fail if you overlook just
one of them. Don't expect God to change the rules just for you.
Use the right life-approved console for the job. The mechanisms
of the universe are in place, and you have no say. The critical
things are the critical things, and you have no say. You only have
a say to the extent you have success. Over the long run, you have
success only to the extent you satisfy the critical things. It gets
more complicated the more you know and the more others know,
and you have no say. You are mortal and cannot achieve every
4.3 Circular Theological Reasoning 121
success. Your unavoidable task is to define your niche, to formu-

late your success. Learn by the example of successful people what
quality ingredients are available, but your unique self requires your
personal recipe. Get it right and life wants more. Life is always
changing. Handle it without handling me.
It is very important that we in the West understand how Chris-
tianity has effected and been effected by the success of the second
great Western civilization. The heart of that initial success was an
imperial Christendom that forged social relationships at peoples'
expense. ‘Might makes right’ is a law of nature, an imperative to
construct greater civilizations. The destruction of humanity for its
more advanced reformulation could not have been avoided then,
and to the degree that human breakage can be avoided today it has
already been done and not wasted. Centralized Christianity was
splintered by a democratization process driven by material
(economic) reality. When Christendom was democratized, for it is
easier to conquer than to govern, so too were politics and thought.
That underlying fact would suit the English well.
The conquering Iberian Christians, who apportioned the entire
world with papal blessing and advanced the knowledge of
mankind, had been steeled by Muslims who had done virtually the
same thing in a smaller, progenitorial form. Pax Romana, Pax
Mongolica, Pax Britannica, and Pax Americana have been critical
to Western development and modern human affluence. It would
behoove Westerners to ponder how similar Christianity and Islam
were during the Crusades and to what extent each has changed
since.
With the democratization of Western society emerged Western
science. The scientific method owes to a mode of thought, a
philosophy, the idea that the identification of worldly truth is error
prone, requires a careful choice of assumptions, requires consis-
tency with all objective observations, and works best with a
community of peers. The soundness of the philosophy of science
is as deniable as a nuclear bomb blast. There is a philosophy and a
social technology mated with First World material technology.
First World affluence cannot survive long without a culture true to
the philosophy of Western science, without First World civilized-
ness. It is absurd to suppose that an involved God did not know-
ingly impose ‘might makes right’ on our mortal existences, or that
the progress so compelled is not ultimately Godward, to whatever
ends.
4.4 Unbridled Emotion
We must realize that we are grappling with the most weighty

social problem of this nation, and in grappling with such a
complex problem there is no place for misguided emotionalism.
*x*x* But if we will become bitter and indulge in hate
campaigns, the old, the new order which is emerging will be
nothing but a duplication of the old order.
—Rev. Martin Luther King, Jr.
Lord, in the memory of all the saints who from their labors rest,
and in the joy of a new beginning, we ask you to help us work for
that day when black will not be asked to get back, when brown
can stick around, when yella will be mella, when the red man can
get ahead man, and when white will embrace what is right.
—Rev. Joseph E. Lowery, civil rights leader
What feelings do you associate with 9/11? Do those feelings

contribute to solving the future problem? Unbridled emotions, be
it fear or anger, only compound the problem by channeling human
effort away from a solution and possibly toward a problem. The
way I see it, we have roughly two alternatives:
1) unbridled anger and fear + patriotism – humanity = chau-
vinism
2) harnessed emotion + patriotism + humanity = statesman-
ship
Lack of attention to a problem will permit that problem to grow.
Like it or not, the American public's inattention to jihad against
Americans is part of the historical record. As a sampling consider
the Iran Hostage Crisis in 1980, the Beirut Bombing in 1983, the
World Trade Center Bombing in 1993, Bombings of U.S.
Embassies in Kenya and Tanzania in 1998, and the U.S.S. Cole
Attack in 2000.
We have never been part of a Thirty Years' War. We have been
occupied quite rarely and not in modern times—not really because
most Americans have no idea what the Aleutian Islands are. We
have never been ruled by Communists. We have never been
nuked. We can keep it that way only with healthy public debate
and effective action. The strength of a country is no different than
the strength of its people. It is said adversity breeds character.
4.4 Unbridled Emotion 123
Apparently then, people perilously forget why poor character is so.

Also it is said a word to the wise is sufficient and fools learn by
experience. Word.
It helps to deal with one's emotions by not attending to the
emotional baggage of others. I think if you look you will see that
the origination of social disputes in your personal life are psycho-
logical as much as physical. The psychological rules of each
contest are typically agreed upon, whether done consciously or
subconsciously. Each party musters his sociopsychological
essence to define the sociopsychological topography. When
someone asserts or intimates, often by eye contact, that you are
responsible for that person's unpleasant feelings, don't give
credence to it. Debating about it gives it credence. I mean don't
give it the time of day. If you accept the disadvantage of a respon-
sibility without privilege, you are fighting up hill. If you don't,
you are fighting downhill, at least in the emotional realm. Some-
times the sociopsychological contest will fail to solidify simply by
refusing delivery of emotional baggage. Strategic ignorance really
can be bliss. Toe the line but know the line. Take responsibility
for yourself.
4.5 Minimum Wage Reverence
If the law once steps in to fix the number of hours he shall labor,
his complete independence will be further off than ever; it will
next fix the amount of his wages and who knows what beside, and
all business will every year be at the mercy of politicians, who
will use their power of regulating labor, as they now use their
power of granting franchises, for their own ends.
—The Nation, New York City, 25 April 1867
The minimum wage is a price control. Price controls don't work in

elastic markets like the job market. As a symbolic minimum, the
actual impact is minuscule. A large positive impact is not going to
happen, period. Let it go; it's a crumb.
Instead of fighting the symptoms of low valuation, may I
suggest addressing causes? Realize your intrinsic worth surpasses
legislative charity. Already identified are government deficit
spending and worker imports. Let's determine more causes of our
discount.
In late 2005 a certain survey found the top six concerns of the
CEOs of Corporate America in descending order were: healthcare,
energy costs, litigation, materials costs and pensions (tied at 4th),
and labor. In late 2007 the ranking was: healthcare and energy
(tied at 1st), material costs, litigation, labor, and capital costs. If
you want better job prospects, you have three important issues that
are not well regulated by free enterprise. Healthcare, litigation,
and to an important extent, energy are characterized by inelastic
markets. One could say fixed markets. If you were looking for
proof that working Americans don't make too much, there it is at
number 6 in 2005 and number 5 in 2007. Ready to get effective?!
4.6 Power and Discrimination 125
4.6 Power and Discrimination
Political power grows out of the barrel of a gun.

—Mao Zedong (1893–1976), a.k.a. Mao Tse-tung
If we achieved by embracing our luck, we would either do nothing

or do anything. Neither works. True success is achieved by
applying power with discrimination. If you are alive, you have the
power that comes with your life and the choices that come with
your situation. The question is not if you should exercise your
power. Nor is it if you should discriminate. In this life you are
charged with your power and discrimination by the brunt of the
consequences. Too bad we all did not get enough practice with the
supposedly ‘little things’ in childhood—the phenomena of cause
and effect.
Conventional wisdom says don't take the law into your own
hands. A hockey referee penalizes whom? The player who
breaches the ref's privilege of authority. The executives of an
antidemocratic government penalize whom? The citizen who
breaches their privilege of authority. We wouldn't be conditioned
to take the law out of our hands if we couldn't effect it ourselves.
To take the law out of our own hands by our own faculties is to
disown what we inherently have. It is tacitly admitted. One could
say democracy is an inalienable right with a wide latitude. You are
a bipedal voting machine, but the greater vote is natural, of the
type emulated by the free market. Free markets can and do nego-
tiate and economize the consumption of contested freedoms as
easily as contested wealth, by the way.
Somehow, we take legal responsibility for ourselves every day,
just not as lawyers. I don't know what the penalty for killing
someone is or what law provides for it. I do know natural law
requires a violent society to be more dangerous to me than a
peaceful one. So I don't kill indiscriminately. Indiscriminate
behavior is generally destructive. The merit of social restraint
(and prerogative) is to free constructive behavior. Legality without
vitality is impracticality.
What would happen if every human dispute were required to be
resolved by legal mechanism? Everyone would be employed by
that legal mechanism to handle the work load. Then everyone
would be taking the law into their own hands.
I for one do not want to live in a country that is a police state. I

like that people can settle disputes in the real world at the speed of
life. I am particularly concerned with the cases where things go
awry and the definition of awry we as a culture define. Shirking
this responsibility of law is the road to national ruin. The social
experiences of childhood should have taught us to critique rules,
others' and our own. Power to the people is the ideal. Power to
the able people is the reality.
4.7 Self-sufficiency 127
4.7 Self-sufficiency
The complaint formerly prevalent, that our almshouses, insane

asylums and hospitals were overcrowded with newly arrived
immigrants, will, therefore, be found to be no longer well founded.
—Joseph H. Senner, U.S. Commissioner of Immigration, circa
1897
As you must know, consumption requires a previous production.

Those who consumer more than they produce are dependent on
others. Those who produce more than they consume are indepen-
dent of others. Self-sufficiency is a charitable act because others
escape the burden of you. (Organized charity is not infrequently
social power brokering funded by politically deficient consumers
of detached validation.)
As humans we are fortunate that we can save surplus for
unspecified future consumption. This is a privilege to be earned.
When you outlive your independence and your surplus and others'
charity, what more would you expect? Can charity be coerced?
What happens when entitlement is the rule and not the exception?
I think our collective psyche sanitizes itself of expiring or
expired personal independence. We hide those people about to die
in the corner and maintain their bedridden lives as long as possi-
ble. Does a whisper of death shatter the political guarantee of
some ineffable social contract? How do we plan for our futures
and exploit our todays with this much denial? Failure is integrated
into opportunity. Death is integrated into living, not just dying.
Create your life. Fully live your life. But don't live mine.
Exploitation is not integrated into community any more than hate
is integrated into love. It's just too convenient.
4.8 Sustainability
In the past, we have succeeded in attracting the world's best and

brightest to study and work in the United States, and we can and
must do it again. We must move beyond the debate about
numbers, quotas, and caps. Rather, I urge Congress to ask, “How
do we create a system that supports and sustains the innovation
that drives American growth, economic opportunity and
prosperity?”
—William H. Gates, Chairman of Microsoft
There have been a number of incredibly aggressive products
[loans] marketed to consumers over the past five to eight years.
Now we're starting to see the fallout of that aggressive marketing.
—Suzanne Boas, President of Consumer Credit Counseling
Service of metro Atlanta
When Charlie and I finish reading the long footnotes detailing the
derivatives activities of major banks, the only thing we understand
is that we don't understand how much risk the institution is
running.
—Warren E. Buffett, Chairman and CEO of Berkshire Hathaway
Inc.
The fallout explained by Suzanne Boas was the rise early in 2006
of Georgian foreclosures against home owners. The aggressive
products included adjustable-rate and interest-only loans. You'd
think adults competent enough to buy homes on credit would be
smart enough to look at the history of interest rates, like the federal
funds rate and whatever rate applies (or would apply) to one's
unfixed mortgage. The truth is that home owners who default
simply due to higher interest rates are too stupid for home owner-
ship. The market—other people in this world competing for the
same limited resources—simply recognized the ineptitude and
belatedly at that. The soft sciences are soft with human psychol-
ogy. Perhaps if Americans knew more about the financial innova-
tions involved, some winners from Wall Street would instead be
doing hard time.13 The resulting housing and credit crisis smells of
a novel and corrupt pyramid scheme.
13 Warren
Buffett has shared many illuminating insights into the Wall Street
smudge in his Chairman's Letters within the annual reports of Berkshire
Hathaway Inc. as posted 15 March 2008 on the Berkshire website at
4.8 Sustainability 129
Bank owners in the United States have historically had limited

liability for their bank's activities. That liability was markedly
reduced when the Federal Deposit Insurance Corporation (FDIC)
was established in 1933, during the Great Depression, and
strengthened in 1991, after the thrift debacle of the 1980s. As
lenders, banks had traditionally held on to the mortgage loans they
made. Because the reward of bank owners was coupled to the full
risk of default, banks had to be careful about making mortgage
loans. You can bet they performed a watchdog function on their
investments.
That began to change in 1970 when the U.S. Government as
Ginnie Mae issued the first decoupled mortgage-backed securities.
Ginnie Mae is the popular name for the Government National
Mortgage Association, a federal agency that guarantees securities
derived from residential mortgages insured by the Federal Housing
Authority or the Department of Veterans Affairs. Mortgage
lenders traded bundles of their mortgages to Ginnie Mae for secu-
rities issued by Ginnie Mae and backed by the mortgages so sold.
The mortgage-backed securities (MBS) were and are a kind of
credit derivative, a financial instrument having value defined,
perhaps inversely, with respect to certain debt holdings. In the
mid-1970s investment banks created a secondary market by selling
MBS guaranteed by Ginnie Mae.
Financiers later developed a more complex securitization of
mortgages into bonds of assorted yields, risks, and maturities
called a collateralized mortgage obligation (CMO). A similar,
more general structure called a collateralized debt obligation
(CDO) securitizes mortgages and other debt. Bonds from the first
CMO were issued in 1983 by Freddie Mac. Freddie Mac is the
popular name of a government sponsored entity (GSE) tasked to
provide funding for mortgages. A GSE has a special federal
charter related to supplying credit to a particular sector of the U.S.
economy but is a privately held organization rather than a govern-
ment agency. Since 1983 Freddie Mac and a similar GSE known
as Fannie Mae have securitized many mortgage loans. In 2003
their outstanding MBS amounted to just over $2 trillion. Securi-
ties issued by Fannie Mae and Freddie Mac were not officially
guaranteed by the U.S. Government, but the expectations of finan-
cial markets were otherwise—even before the $25 plus whatever
http://www.berkshirehathaway.com, for example: the 2004 report, pp. 23–

24; the 2003 report, pp. 8–9, 15; and the 2002 report, pp. 13–15.
billions bailout package called the Housing and Economic

Recovery Act of 2008 was signed by President Bush on 30 July
2008. The result was a new government agency taking Fannie
Mae and Freddie Mac into conservatorship on 7 September 2008:
the markets were right. Congress must have anticipated the total
cost will fit under the act's $800 billion increase to the white-wash
known as the statutory limit on public debt. Sometimes the entity
that creates a CDO, known as a Special Purpose Entity (SPE) or
Company (SPC), is a regular company from the private sector
issuing a ‘private label’. Around the world a variety of securitiza-
tion mechanisms have been applied to various forms of debt,
constituting part of a greater myriad of derivatives tied to debt,
currencies, stocks, etc.
Proponents of credit derivatives have boasted of greater effi-
ciencies. Their argument is that borrowers get access to invest-
ment monies that they otherwise could not utilize. That help is
consistent with a pervasive government policy in the United States
that promotes excessive housing consumption, particularly large
and second homes. Don't bet the mortgage makers are performing
a watchdog function on their lending practices. It's not their risk
anymore. Financial engineers and government acquiescence gave
them private, virtually unregulated printing presses backed not by
gold but by fresh loans. Overconsumption increasingly yielded
debt fodder of inferior quality. In 2005 the majority of U.S. mort-
gages were securitized and amounted to $4.7 trillion. In the
twelve-month period ending September 2005 the budgetary
spending of the U.S. Government was $2.5 trillion; tax revenue
was $2.1 trillion. The nominal size of the U.S. economy expanded
from $46 trillion to $51 trillion. With authoritative support from
President Bush, MSB-soiled Bear Stearns was bailed out in March
2008 with $28.82 billion of your Federal Reserve money, chan-
neled through JPMorgan Chase, the firm that acquired Bear
Stearns, in exchange for lousy assets. It so happens that JP
Morgan Chase, Citigroup, and others loaned billions of dollars to
Enron, the risks of which they offset for themselves with credit
derivatives. Ditto was lending to WorldCom and Global Crossing.
It so happens that Warren Buffett, without regard to type, called
derivatives ‘time bombs’ and ‘financial weapons of mass destruc-
tion’ back in 2003. Boom.
4.8 Sustainability 131
The recent fallout (2007–2008) has been the painful, corrective

effect of failure. Failure can be assessed early and contained to a
relatively small scale. Failure can also be deferred, and perhaps
overcome or perhaps assessed later, subsidized and swollen.
Beware the pyramid scheme enriching the few by passing social
cost to the many. A pyramid scheme of credit is leveraged corrup-
tion not so dissimilar to the manipulative flooding of the domestic
job market with alien poverty for unsustainable frugality. Banking
should not simply be a heavily regulated industry; it should be a
heavily monitored industry. Only real democracy and you can do
that. Because we the people have yet to take the reins of our
banking system, of our very money in fact, massive debt failure is
free to escalate within a containment hierarchy. Such was the case
with the thrift and banking crisis in the 1980s that spewed burden
from loan participants to bank participants to economic partici-
pants. The prevailing thrift business model in particular was ill-
suited for the high interest rates and deposit competition of the
1970s and 1980s.
The Garn-St Germain Depository Institutions Act of 1982
(Garn-St Germain) sought to restore profitability to thrifts and
banks. In part this act allowed those institutions to compete more
aggressively for commercial mortgages and to expanded credit.
The incited construction activity contributed to a commercial real-
estate market collapse in many regions. Later Congressional acts
focused on thrift and bank stability, but the systemic failure had
been assured. Legislation like Garn-St Germain had actually
increased the economic damage. The Savings and Loan failures
were estimated to cost $152.9 billion over the ten years starting
with 1986, and U.S. taxpayers covered 81 percent of it or $123.8
billion. Taxpayers were unscathed by the less costly bank failures.
The Keating Five scandal may epitomize politics then and now,
should you wish to investigate.
Thirty-year fixed-rate mortgages are traditional for a reason.
Our Universe enforces a law of conservation. Something for
nothing is not maintainable. Imbalance is precarious. Nature
abhors a vacuum and responds with pressure. When we live
without balancing privilege and responsibility, we have in effect
created a vacuum. Reinforcing the imbalance further is not a
sustainable solution. Natural consequences will specifically target
the system imbalance but indiscriminately target broadly-defined
system elements. These elements include us as taxpayers,
passersby, your family members, etc. We have important conse-

quences that are shared, require our cooperation, and require our
vigilance. In some sense, capitalism requires a slight and specific
touch of socialism. Yah, I said it. Martin Luther King, Jr. recog-
nized the same basic truth, articulating in 1967:
What I'm saying to you this morning is communism forgets that
life is individual. Capitalism forgets that life is social. And the
kingdom of brotherhood is found neither in the thesis of commu-
nism nor the antithesis of capitalism, but in a higher synthesis. It
is found in a higher synthesis that combines the truths of both.
Healthy behavior and thinking shun setting a danger of natural
imbalance in motion. Perverse behavior and thinking seek it out.
If the character of our universe is assumed consistent with super-
natural power guiding our affairs, we have a morality based on
functionality. Notwithstanding, the law of conservation demands
conflict among ourselves and with our environment. Life reso-
lutely is never free of challenge or loss. History shows the most
affluent societies are those balancing cooperation and competition
within a system of united individualism.
Let us not be content to relegate a creed of citizenship to the
emotive nothingness of a feeling. The hallmark of philosophy,
which gives potency to passion, is a connective congruency that
proofs and liberates feelings through the actionable substance of
ideas. Let us recognize and break a debilitating pattern:
1) corrupt financial practices of systemic ramifications,
2) government bailout in lieu of free-market regulation,
3) more government regulation in lieu of free-market
economy,
4) financial engineering, and
5) repeat.
Sure, creative destruction is painful, but what else will remove
the bastards? What else will regulate the bastards? A society that
chooses the expectation of safety over the expectation of vitality is
undeserving of safety, vitality, and freedom. We will not comb
through the past 150 years of socialism and find the mythical gem
of utopia. We will not comb through the more than 200 past years
of capitalism and find our fulfillment. We will bring future preem-
inence to now, or we will forfeit the greatest social elevation
devised by man. A harsh void beckons. Cultural leadership befit-
ting the 21st century has yet to be claimed by any people on earth.
Chapter 5
SOCIOECONOMIC VERITY
5.1 Federal Deficit Spending
Under normal conditions there is something anomalous in the

expression “an unbalanced national budget.”
—Rufus C. Dawes (1867–1940), businessman
The Federal Government has different objectives from a business
firm. The goal of every business is to earn a profit, and as a
general rule the Federal Government properly leaves activities at
which a profit could be earned to the private sector. For the vast
bulk of the Federal Government's operations, it would be difficult
or impossible to charge prices that would even cover all its
expenses. The Government undertakes these activities not to
improve its balance sheet, but to benefit the Nation.
—Budget of the United States Government, Fiscal Year 2007
The practice of federal deficit spending requires the force of law

and has only two techniques: indefinite borrowing and literally
making money. Indefinite borrowing is accomplished in the
United States with guaranteed Treasury securities. The guarantee
is the dollar amount of the bill on maturity, not real purchasing
power. Every recycled round of borrowing buys time to pay for
past deficit spending. The cost is owing more and more dollars.
The increased demand for loan money moves that familiar demand
curve to the right into greater quantities. As the pricing of
borrowed money on various terms, interest rates rise. Higher rates
reduce the activity of businesses and the number of available jobs.
When indefinite borrowing collapses and surplus government
money is not available, the same stalwart solution remains.
Default. In the case of a national crisis, a government and friends
133
134 5. SOCIOECONOMIC VERITY
could default on payment to foreign creditors. However, the usual

default mechanism technically honors the debt. The net gain of
making money legally is called monetizing the debt. (I am not
talking about new money replacing old money in physical circula-
tion.) Making money is inflation of the apparent variety. Inflation
is painstakingly described in chapter 2, “Free Enterprise 101.”
Apparent inflation reduces the real earnings of workers.
So there you have it. Raise interest rates and lose workers' jobs,
or increase the money supply and lower workers' real wages. The
combination really sells the work-for-free mindset. The Federal
Reserve System (the Fed) buys and sells Treasury securities to
manipulate to a target value the federal funds rate—a foundational
loan rate of the U.S. banking industry—in a process called open
market operations. The federal funds rate is the market rate of
overnight loans between banks with Fed membership and thus at
least one account in a Federal Reserve Bank. Buying by the Fed
favors more inflation over higher interest rates, and selling has the
opposite bias. It's all relative, so buying more compares to buying
less just the same.
Open market operations are ‘outright’ if the transactions are
permanent, that is normal. Outright selling by the Fed is rare. The
pragmatic choice is simply how much in additional securities the
Fed will buy and generally hold until maturity. Temporary trans-
actions finely attune prevailing securities prices to monetary
policy. In such case the security is passed to or from the Fed in
exchange for roughly market value. The temporary holder of the
security is essentially making a collateral loan at a price. All of the
Federal Reserve's open market operations occur in a secondary
market of outstanding securities absent of provisions with the U.S.
Treasury. The account used for operations is with the Federal
Reserve Bank of New York and called the System Open Market
Account or SOMA. The domestic portion of SOMA holds U.S.
government securities denominated in U.S. dollars not dollars per
se. The foreign portion holding investments denominated in
foreign currencies is used to manipulate currency exchange rates,
but the focus of this writing is domestic monetary policy.
An initial question is then: How much federal deficit spending
is there? Table 5.1 shows the annual surplus or deficit for recent
fiscal years (ending September 30th) in billions of dollars.
Table 5.1 Annual U.S. Government Financial Statistics
Fiscal Year
1998 1999 2000 2001 2002 2003 2004 2005 2006
TellYaLater -109.9 101.3 (r)39.6 -514.8 -364.9 (r)-667.6 -615.6 (r)-760.2 -449.5
Surplus or (-) Deficit,
Unadjusted $109 's 69.3 125.6 236.2 128.2 -157.8 -377.6 -412.7 -318.3 -248.2
FY 2000 $109 's 72.1 128.9 236.2 125.3 -151.3 -352.8 -374.7 -278.8 -210.2
GDP-Normalized
Percentage 0.8 1.4 2.4 1.3 -1.5 -3.5 -3.6 -2.6 -1.9
Transferred Fed
Earnings,
Unadjusted $109 's 24.5 25.9 32.3 26.1 23.7 21.9 19.7 19.3 29.9
(r)=revised
NNNNNNNNNNmxxxi5.1xiFederalfDeficitfSpendingNNNNNNNNNxxir135
The Historical Tables, Budget of the United States Government,

Fiscal Year 2009 presents several tabulations of actual budget
results for every fiscal year from at least 1940 to 2007. One set of
values represents the annual outcomes converted into comparable
dollars of fiscal year 2000. According to the data, real deficit
spending for the initial phase of the Persian Gulf War II (a.k.a. the
Iraq War) was at a level similar to the Reagan-Bush years of the
Cold War capped off by the first Gulf War. Clinton had his little
Kosovo War in 1999. Every year of the Clinton presidency
improved government solvency as measured by real budget
results. The deterioration of budgetary finances began the first
fiscal year George W. Bush held office. He had been President
only eight months, the military campaign in Afghanistan was not
quite loosed, and the doubly expensive Iraq War was not a publicly
sought policy when the annual budgetary surplus had fallen by 1.1
percent as normalized by gross domestic product (GDP). GDP
represents an economy's yearly output that may be used to satisfy
human wants. Not since World War II had the government indu-
bitably racked up greater deficits in real terms, that is constant
dollars, than in fiscal years 2003 and 2004. War expenses may
justify strategic government deficit spending for a time with the
utmost care. However, we must be sure the self-directed cure is
not additional too or worse than the adversarial malady. That's
what Big Terror wants. The fall of the Soviet Union was largely
due to economic impotence. Recent budgetary outcomes, prior to
the Bush-Obama nationalization of banks, in real terms subject to
future revision of inflation history and in nominal terms indicate
substantial financial improvement. Unadjusted budget results of
fiscal years 2006 and 2007 are deficits of $248 and $162 billion,
respectively. The indication is that the military operations in Iraq
and Afghanistan are financially feasible. The deficit of fiscal year
2006 represents a per capita burden of $828 across a U.S. popula-
tion of 299,801,000 in 2006, including illegals. That is $828 for
every man, woman and child to work for free in 2006. Why was
$828 at the beginning of calendar year 2006 equivalent to $849 at
the end? Hint: The change of the CPI–U for 2006 was 2.54
percent. There's a better way to appreciate it. A cash stash of $828
held over the calendar year 2006 was worth $828 at the beginning
and at the end worth the equivalent of $807 at the beginning. If
you had your $828 in a checking account, you made let's say $6 in
interest. Congratulations, only down by $15 or 1.8 percent.
5.1 Federal Deficit Spending 137
The rosy budget picture I just painted is as much a lie as

portraying a Monet from its x-ray. A budget analysis is for *x*x*
erhh *x*x* budgeting. The idea of using actual, budget-reckoned
results to assess financial sustainability is nonsensical despite its
institutionalized use that way. The Budget of the United States
Government itself has been saying as much. Each fiscal year's
budget and budgetary outcome is primarily reckoned on a cash
basis. Gains and loses are assessed according to when money
transfers not when the expectation of transfer is finalized, poten-
tially postponing the assessment to a later period. Cash-flow anal-
ysis and short-term concerns have their place, but long-term
characterization requires the direct linking of execution to conse-
quence. The widespread practice of accounting to known conse-
quences is termed the accrual basis.
Federal law as maintained by Congress and upheld by the Presi-
dent generally prohibits C corporations (the impersonal, taxable
entity) with gross receipts over $5 million from using cash
accounting for income tax purposes. The prohibition of cash
accounting requires the use of accrual accounting. Yet most
members of Congress and the Administration routinely represent
to the public the financial condition of our $2-trillion-a-year
government solely in terms of that same cash accounting, even
though a more complete and accurate assessment has been authori-
tatively available for fiscal years since 1997 and otherwise avail-
able much earlier.
The lesser know and debated Financial Report of the United
States Government uses the accrual basis. Effective financial
accounting uses several statements in combination. The budget
report complements the financial report when not misused. Differ-
ences between the two fiscal reports are summarized in table 5.2.
U.S. GAAP means the U.S. Generally Accepted Accounting Prin-
ciples for federal government entities.
The top row of table 5.1—I'm telling you now—shows the
annual net operating results, revenues or costs, in unadjusted
billions of dollars. The net operating results have been worse than
actual budget results, as one would expect of future liabilities and
timeless politicians. The net operating cost of fiscal year 2007 is
initially reported to be $275.5 billion, a 39 percent reduction from
the prior year. Don't get attached to budgetary and net operating
numbers. Audit of every relevant government department is
Table 5.2 Comparison of the Budget and the Financial Report of

the United States Government
U.S. Government Fiscal Report
Budget Financial Report
Basis Cash, With Limited Accrual
Exceptions
Term of Gain Unified Budget Net Operating
Surplus Revenue
Term of Loss Unified Budget Net Operating Cost
Deficit
Liabilities Included No Yes
U.S. GAAP No Yes
U.S. Code 31 U.S.C. 1105 31 U.S.C. 331(e)
Meaningful Audit No Yes, Statutory
Requirement Outside Audit
regularly not possible, future expectations derive from subjective
assumptions, and annual fiscal inconsistencies of several billion
dollars are commonplace.
Moreover, the government numbers do not reflect all germane
considerations. For example, the U.S. Government does not quan-
tify the hundreds of billions of dollars in losses from tax expendi-
tures (tax breaks) each year. Furthermore, U.S. GAAP standards
do not include certain liabilities of Social Security finances, but
both government reports describe Social Security concerns under
the heading ‘Stewardship’ in the budget reports, under ‘Steward-
ship Responsibilities’ in the financial reports through 2005 and
under ‘Supplemental Information’ thereafter. The repertory of
accounting concepts just covered permits an assessment of U.S.
Government finances. Only a simple clarification of terminology
is left to do. Net cost equals gross cost minus earned revenue or
revenue obtained by sales rather than taxation, liability is an
expense owed but not yet paid, and an outlay is an expenditure.
On a cash basis, Social Security payments are the greatest
outlay by function, followed closely by defense spending.
Together they cost over a billion dollars in fiscal year 2007.
Annual estimates through fiscal year 2013 project defense
spending to remain flat while growing Social Security payments
will pass $800 billion in the last year considered. On an accrual
basis, the distinction of greatest annual net cost by fiscal entity
held by the Department of Defense since fiscal year 2003 was

relinquished to the Department of Health & Human Services in
fiscal year 2007. Interest on the public debt was the fourth
greatest net cost by entity in fiscal year 2007. Public debt itself is
the largest ‘accrued’ liability of the Federal Government followed
closely by employee and veteran benefits. No other realized
liability has been comparable for at least a decade. Social Security
is currently a positive cash flow or an accruing asset because its
tax revenues exceed its expenditures. The imbalance is projected
to reverse in 2017 and become troublesome soon thereafter. An
investment of nearly $7 trillion in 2007 represents coverage of the
estimated shortfall Social Security programs will garner over the
75 years thereafter. Medicare equates to a monstrous $34 trillion
investment, but I digress. The expenditure of interest on the public
debt in fiscal year 2007 was $239 billion. Over the same 12
months Fed earnings derived from inflationary monetary opera-
tions and paid to the U.S. Treasury, as merely implied by 12
U.S.C. 289 and 290, were $32 billion. Simultaneously, the public
debt of the U.S. Government increased by $206 billion to $5.0 tril-
lion. The portion held by foreigners gained $230 billion to reach
$2.3 trillion, according to initial statistics released March 2008.
The contention surrounding Social Security is assuaged by the
2009 budget report:
Also, if Social Security and Medicare benefits were treated as
liabilities, then payroll tax receipts earmarked to finance those
benefits ought to be treated as assets. This treatment would be
essential to gauge the size of the future claim. Tax receipts,
however, are not generally considered to be Government assets,
and for good reason: the Government does not own the wealth on
which future taxes depend. Including taxes on the balance sheet
would be wrong for this reason, but excluding taxes from the
balance sheet would overstate the drain on net assets from Social
Security and Medicare benefits. Furthermore, treating taxes for
Social Security or Medicare differently from other taxes would be
highly questionable.
So the Budget, Fiscal Year 2009 contains one perspective.
Ominous is the perspective from the 2005 Financial Report:
The current financial reporting model does not clearly and trans-
parently show the wide range of responsibilities, programs, and
activities that may either obligate the federal government to future
spending or create an expectation for such spending. Thus, it
provides a potentially unrealistic and misleading picture of the
federal government's overall performance, financial condition, and

future fiscal outlook. The federal government's gross debt in the
consolidated financial statements was about $8 trillion as of
September 30, 2005. This number excludes such items as the gap
between the present value of future promised and funded Social
Security and Medicare benefits, veterans' health care, and a range
of other liabilities (e.g., federal employee and veteran benefits
payable), commitments, and contingencies that the federal govern-
ment has pledged to support. Including these items, the federal
government's fiscal exposures now total more than $46 trillion, up
from about $20 trillion in 2000. This translates into a burden of
about $156,000 per American or approximately $375,000 per full-
time worker, up from $72,000 and $165,000 respectively, in 2000.
These amounts do not include future costs resulting from Hurri-
cane Katrina or the conflicts in Iraq and Afghanistan. Continuing
on this unsustainable path will gradually erode, if not suddenly
damage, our economy, our standard of living, and ultimately our
national security.
So how much is $46 trillion? About 88 percent of the $52 tril-
lion total net worth of all Americans at the end of year 2005.
Fortunately or unfortunately, the rest of the world has accommo-
dated our extravagance. During the first 4-year term of the George
W. Bush administration, the U.S. Treasury has borrowed $1.05 tril-
lion from foreign governments and foreign financial institutions,
more than the $1.01 trillion in the entire preceding history of 42
Presidents and 224 years. Of course, debt is only one method.
Study infra table 5.3 to gauge the complementary process of
monetizing the debt. Note that income from securities is
comprised of the interest on those held and the redemption of
those liquidated. The total holdings of purely monetized debt by
the Federal Reserve is not expressly provided in the Board's
annual reports, as it is in those of the Federal Open Market
Committee (FOMC). The Board's reports show holdings of
nonsensical collateral for fiat dollars. Though the two sets of
annual reports will not tell you, the ‘collateral’ is the fruit of debt
monetization, i.e. inflation. Sure, the amount of paper money
outstanding is important to track, but its backing is pure imagina-
tion just like that of electronic money. It's as real as the Treasury
paying the Fed interest paid back to the Treasury minus expenses
to generate a revenue stream. If ever you needed to claim a hard
fiat dollar with your soft paper or electronic dollar—well—they've
got you covered.
The correct monetary policy is effectively no monetary policy.

The optimal money supply adjustment is no outright adjustment.
Government borrowing is downright bad for the economy. Guar-
anteeing a return, government borrowing diverts investment
resources away from the private sector and from the only hope of
delivering a material return. Government borrowing raises interest
rates, necessitates inflation, and suffocates economic growth.
Changes in money supply are useful to ‘doctor’ the economy, but
in a good way only if the changes are temporary fluctuations
following business cycles and reverting to a money supply that is
effectively constant over the long run. However, any expectation
of reduced consequences leads to increased risks and increased
consequences. A spanking should hurt but not kill (the aggregate
charge). Sometimes individuals earn more than a spanking.
The annual finances of the Federal Reserve should be calculated
into Government financial statements along with money creation
and destruction. The Fed accounts for its finances by the calender
year. The U.S. Government reports by the fiscal year ending
September 30th. The surplus monies transfered from the Fed to
the Treasury are presented as apples and oranges, but as the time
frame of consideration is lengthened beyond several years the
totals should merge toward agreement.
In the calendar year 2006 the Federal Reserve System created
$44,690 million in high-test dollars. Those are the kind of dollars
the banking system expands many times over with credit recy-
cling. Banks tend to take deposits and make loans up to the limit
of deposit requirements—or there wouldn't be deposit require-
ments. So a $100 injection of high-test constrained by a 10-
percent reserve requirement expands as $100 + $90 + $81 +
$72.90 + $65.61 + $59.04 + *x*x* low-test. Central banks make
permanent money; non-central banks make future claims on
permanent money that looks like permanent money. Here it
comes. On average in 2006 the Fed added $857 million in high-
test expanding toward several billions in low-test each and every
week!
Outsourcing has been made a scapegoat, a pejorative term, for
the union of specialization, efficiency, and freedom that makes free
trade preferable. The addictive abuse of foreign efficiency is not
afforded without government deficit spending. Easy U.S. dollars
have been competing with hard-earned U.S. dollars. Easy dollars
have substituted American reward of hard work and social contri-
Table 5.3
Calendar Year
(In Unadjusted $109 's)
1998 1999 2000
Monetization Disbursement,
Net Purchase of Securities 29.9 45.4 43.7
Monetization-Reward
Liquidation,
Redemptions of Securities 5.0 1.6 28.3
Year-End Unliquidated
Monetization Rewards,
SOMA Holdings 473.4 517.5 532.9
Year-End (Monetization?)
Holdings in Securities 473.4 517.3 532.9
Year-End Federal Reserve
Note Collateral(?)
in Securities 471.4 583.4 550.2
U.S. Treasury and Federal
Agency Securities ‘Income’ 26.8 28.2 32.7
Federal Reserve System Net
Cost 0.9 3.5 4.5
Transfers to U.S. Treasury 26.6 25.4 29.1
bution with American reward of gluttony, status, and glorified

uselessness. Easy dollars have undermined the urgency and
volume of America's wealth production. Beyond the apparent
inflation due to increased money supply, easy dollars have raised
the price of American goods in real terms due to the reduced
supply of those same American goods and so the price of goods in
America generally.14 Easy dollars like to shift Americans into low-
paying service-me jobs. Easy dollars have fostered a perpetual
14 Apparent inflation without a temporal bias in distribution is just that, appar-

ent. Remember the Dougster Act on page 84. Businesses generally have no
temporal bias among themselves. All businesses will raise their prices, as
the prices charged by other businesses rise, to correctly fit market forces
measured by monetary units that happen to be debasing. Generally these
adjustments are a wash, and businesses have not exploited one another. The
liability of handing over something for nothing to the easy money is to the
generic wealth-producing business only real inflation. That is to say, busi-
nesses generally raise prices to wholly compensate for apparent inflation
because with no applicable restraint in physical reality they can.
Annual Federal Reserve Financial Statistics

Calendar Year
2001 2002 2003 2004 2005 2006
68.5 54.2 36.9 50.5 28.1 44.7
27.0 -0- -0- -0- 2.8 10.6
575.4 (p)628.0 (p)667.0 (p)717.0 742.8 778.9
574.8 629.4 666.7 (r)717.8 744.2 778.9
(r)600.3 644.5 676.5 706.2 745.1 769.8
30.5 25.5 22.6 22.3 29.0 36.5
4.2 1.2 1.3 2.7 8.0 5.1

27.1 24.5 22.0 18.1 21.5 29.1
(r)=revised, (p)=padded with zero after the decimal point
trade deficit that can last only as long as America's preeminent
reputation. Easy dollars have made the greatest culture on earth
not so great. Americans formerly refined their feelings for
enriching experiences and results. Now Americans expertly stimu-
late their crude feelings, the kind worthy of animals that dress
themselves.¿
¿How
Howfar
farbusinesses
businesses additionally
additionally raise
raise prices
prices to
to compensate
compensate for real infla-
tion is harder to say, but control to set their prices and the requirement of a
profit margin will tend to push prices up to recover the cost of real inflation
as well. Sales volume will decline without an offsetting nationwide export
growth because supply has been reduced by unearned consumption. The
nation's economy—its very means of production—atrophy or else pass to
foreign ownership. By not raising wages with equal effect, businesses
passively pass their costs of real inflation to employees, a category toward
which the owners of marginal businesses edge in the face of increasing
domestic scarcity. Businesses pass the costs of apparent inflation to
employees as consumers. Some businesses will fail and increase the pool
of unemployed.
A higher birth rate would help lower our per capita burden. We
can screw our way out of this! Alas, a birth rate beyond zero
population growth increases the number of mouths to feed no less
than shoulders in action. Those who can least afford children have
the most. Welfare the rule not the exception—and that's what
irreverent government deficit spending is—undermines motive to
produce. Freeloaders, whether rich or poor, are reprieved of their
financial inadequacy by extending financial imbalance to others of
the next containing system. The delinquents' delinquency spills
over as the taxpayers' burden. Taxation shortfalls are extracted by
the Fed from every dollar-dependent sap in the world. Sucker.
Now imagine the tempting billions of dollars the Federal Reserve
System could produce confidentially, if government money laun-
dering were legal of course. This isn't your grandfather's Federal
Reserve.
If we first presume all productive businesses stay healthy and suffer no

more than a negligible decline in sales volume, a crude quantification is
possible, and the analysis gets scary interesting. The rate of decline of per
capita domestic prosperity, being the referential decline of equitable
(proportional by dollars) economic enfranchisement, is the real inflation
rate. Also, the amount of real inflation (assuming net wealth is lost largely
by unearned consumption) is not much more than total government expen-
ditures and is no less than the superfluous money of unearned consumption
causing apparent inflation. The real income decline of productive busi-
nesses in the best of circumstances will be perhaps a small fraction of the
all-for-one equitable decline, with the remainder not shouldered seeking a
home. The decline in purchasing power of unadjusted wage-based income
will be equal to the rate of real inflation (representing proportional cost)
plus a share of real inflation businesses pass on to customers plus apparent
inflation, totaling more than the all-for-one dollar proportional rate of mate-
rial deprivation, quite plausibly twice more.
If lots of businesses were to fail, the relative drop in wages would be
more, honest consumer demand would fall, and more businesses catering to
respectable Americans would fail, and so forth. Productivity gains of the
modern economy cloak this multiplier effect of magical fiduciary leverage
to a point, and the wage slaves never miss what they never had. Mean-
while, fully and overly adjusted depredation earnings suffer no deprivation
rate. Nice guys finish last if nice guys there are. If you're a nice American
who has read this far from the beginning of the book, your malaise should
be crystallizing. U.S. Government deficit spending is not merely a theoret-
ical problem.
5.2 Worker Imports 145
5.2 Worker Imports
The word “padrone” is adopted from the Italian, and signifies

master or “boss.” In its application to American conditions, it
refers to a system of practical slavery, introduced into this country
by the Italians, and subsequently utilized by a number of other
southeastern European races.
—Henry Pratt Fairchild (1880–1956), sociologist
I personally witness the ill effects of these policies on an almost
daily basis at Microsoft. Under the current system, the number of
H1–B visas available runs out faster and faster each year. The
current base cap of 65,000 is arbitrarily set and bears no relation
to U.S. industry's demand for skilled professionals.
—William H. Gates, 7 March 2007, Chairman of Microsoft
Adding to the pool of workers in America changes the labor

market in accordance with figure 2.2 of the earlier “Supply and
Demand” subchapter. This change redirects prosperity from
American workers predominantly to American-based business
owners and executives with a smaller per capita portion going to
the lower-paid foreign workers. Worker imports come by way of
legal immigrants, illegal aliens, and guest workers. If employers
of Americans were equitably present in these groups, job market
balance would be maintained. Rather, an imbalance against Amer-
ican labor is effected. Balance is not restored by reclassification of
worker aliens as legal permanent residents (LPRs) or citizens.
The conflicting national interests of employers and employees
regarding worker imports are a global phenomenon that has
sparked opposition groups worldwide. Circa 2005 in terms of
annual immigrants per 1000 residents, the United States at 3.8 was
well behind the United Kingdom, 5.7; Canada, 8.0; and Australia,
8.2. Per capita immigration is but one factor describing immigra-
tion policy. U.S. emigration data has not been collected since
1957, but the CIA World Factbook 2006 estimates a U.S. net
migration rate in 2006 of 3.18 migrants per 1000 population.
Qualitative analysis of current U.S. immigration statistics shows
a bias toward importing employees. Employment-based visas
totaled 246,877 in fiscal year 2005, issued to at least 113,917
workers, at least 132,917 accompanying spouses and children, and
an unspecified 43 others. Of the specified workers, 113 immi-
grated as designated employers. Because only 1 of the 14 undis-
closed employment-based entries was of designated employers, 13

of the unspecified immigrants could not have been so categorized.
At most 143 designated employers are available to balance the
labor market. To hire the remaining 113,804 workers admitted
based on labor skills, the average immigrating employer must hire
796 workers. Immigration and Nationality Act (INA) law as of
2006 requires only 10 jobs per employment-creation immigrant.
Naturally, family-sponsored immigrants have no requirement for
job creation just like the accompanying family members of immi-
grating workers. The total number of immigrants in fiscal year
2005 was 1,122,373.
A study of data gathered from U.S. households found immi-
grants to have, in fact, a slightly lower rate of entrepreneurship
than natives. The same study found (not by surveying only legal
households) the rate of immigration to the United States over three
years from 2000 to 2003 was no less than that of the preceding
three-year period. Those findings despite the rising unemploy-
ment rates of immigrants and natives alike whether having less
than, the same as, or more than a high school education. The indi-
cation is immigrants will come regardless of the business cycle in
the U.S. economy.
A government paper describes a turning point in the recent U.S.
history of immigration and naturalization:
Between 1990 and 1999, 4.7 million persons naturalized *x*x*.
This was more than double the number of LPRs who naturalized
during the 1980s. The increase in naturalizations during the 1990s
was due to several factors. A mandatory permanent resident card
(“green card”) replacement program led some LPRs to naturalize
rather than remain in LPR status. Additionally, beginning in 1994,
the first of the 2.7 million immigrants legalized under the Immi-
gration Reform and Control Act (IRCA) of 1986 became eligible
to naturalize. Legislative efforts during the mid-1990s restricting
public benefits for non-citizens also led LPRs to naturalize.
The IRCA granted amnesty by exempting from numerical limi-
tation new ‘special immigrant’ categories defined with INA
sections 210 and 245A. Key was the language ‘the Attorney
General shall.’ In contrast the Attorney General ‘may’ at his
discretion grant numerally exempt amnesty to individuals accor-
dant with section 249. The exemptions of sections 210, 245A, and
249 are some of the numerically unlimited categories listed by
INA 201(b).
The remaining groups so listed are LPRs returning from a

temporary trip abroad, individuals reacquiring U.S. Citizenship,
LPRs whose deportation is canceled, refugees, and immediate rela-
tives of U.S. citizens. The last category has been the second
largest group of admissions from 1986 through 2003, behind
illegal aliens admitted by IRCA.
Other visa grants are embodied by laws that did not amend the
existing INA nor the U.S. Code (U.S.C.). The notes of 8 U.S.C.
1255 available from the U.S.C. portal of the Cornell Law School
describe immigration provisions from such public laws. Some of
these laws converted all petitioning parolees meeting specific
criteria of time frame and nationality to immigrants without
numerical limitation. The Foreign Operations Act of 1989 granted
unlimited immigration of certain paroled nationals from the former
Soviet Union and some Indochinese countries. The Illegal Immi-
gration Reform and Immigrant Responsibility Act of 1996 (nested
within the Omnibus Consolidated Appropriations Act, 1997)
granted the same to certain paroled nationals of Poland and
Hungary. Regulations of this sort are in part 245 of title 8 of the
Code of Federal Regulations (8 CFR Part 245).
Parolee exemptions relate to a perverted limitation scheme.
From 1997 on, INA 201(c)(4) applies parolees of extended stay
against the worldwide level of family-sponsored immigrants two
years after the paroling. More to the point, exempted immediate
relatives are similarly applied one year later. Because the family-
sponsored worldwide level never drops from a nominal 480,000
below a minimum of 226,000, the limitation effect fails under
heavy demand. From 2000 through 2005, immediate relatives
never totaled less than 300,000 annually. Converted parolees
never exceeded 7,715 annually. The pseudo-limiting mechanism
is a curious construct allowing politicians to champion immigra-
tion limits—but not.
Immigration law beyond the INA is not limited to reclassified
parolees and 8 CFR Part 245. For example, Vietnam aliens
fathered by Americans during the Vietnam War and their families
were admitted without numerical limitation via the so-called
Amerasian Homecoming Act of 1987.15 A review of all U.S.
15 Amerasian Homecoming Act of 1987, engrossed at 101 Stat. 1329–183—
1329–184, is actually a section under the heading “AMERASIAN IMMIGRA-
TION” within the Foreign Operations, Export Financing, and Related
Programs Appropriations Act, 1988 within an act—herein and hereby prag-
matically dubbed the Clusterfuck Act of 1988—engrossed at 101 Stat.
immigration law and history will not dispute one simple fact:
Before IRCA of 1986, U.S. immigration combining statutory
group exemption from numerical limits and amnesty unmotivated
by asylum had never happened.
Though in 1986 illegal aliens were granted amnesty en masse,
the actual citizenship was bestowed much later. Most technically
acquired permanent residency status from fiscal years 1989 to
1992. The annual immigration in years 1990 and 1991 were the
greatest in U.S. history. All other fiscal years through 2005 to
exceed one million were 1905, 1906, 1907, 1910, 1913, 1914,
1989, 2001, 2002, and 2005. For historical perspective the last
two of the contiguous 48 states were added in 1912.
IRCA created new penalties for businesses hiring illegal aliens.
The business penalties apply to those who ‘knowingly’ hire,
recruit, or refer for a fee aliens not authorized to work in the
United States. Therein lies the de facto loophole.
If you didn't notice, IRCA also toughened border security. In
2006 the main page of the Pew Hispanic Center website estimated
11.5–12 million illegal aliens were in the United States. I wonder
how many Americans the illegals hire? Our leadership continues
to look the other way under a guise of tired rhetoric while enforce-
ment of immigration law is consistently spotty.
So what has Congress been doing since 1986? Bringing in so-
called nonimmigrant labor, including millions of skilled foreign
workers, legally! Nonimmigrant visas for skilled foreign workers
described here are H–1B, L–1, and E–3. The nonimmigrant H–2B
visa for seasonal workers skilled and unskilled will also be
described. Lest we think Congress didn't know what it was doing,
I note the United States General Accounting Office did a report
dated September 2000 for a subcommittee of the House of Repre-
sentatives entitled “H–1B Foreign Workers: Better Controls
Needed to Help Employers and Protect Workers.” Recall how
Congress responded to that report. The Department of Homeland
Security (DHS) Office of Inspector General (OIG) also created a
report dated January 2006 entitled “Review of Vulnerabilities and
Potential Abuses of the L–1 Visa Program.”
1329–1—1329–450. The top-level act was approved by President Reagan
on 22 December 1987, which is within fiscal year 1988 (October 1987–
September 1988). The act identified by the publisher in the margin on page
1329–1 of volume 101 of the U.S. Statutes at Large is the nested act ending
on page 1329–43 and there named the Departments of Commerce, Justice,
and State, the Judiciary, and Related Agencies Appropriation Act, 1988.
U.S. Citizenship and Immigration Services (USCIS) administers

and interprets the provisions of our nations visa programs,
including INA and 8 CFR. One such visa program is the H–1B
nonimmigrant work visa program named after subparagraph INA
101(a)(15)(H)(i)(b) defining it. The program allows the hiring of
foreign workers temporarily permitted in the United States for a
specialty occupation requiring specialized knowledge and a bache-
lor's degree or equivalent, or as a fashion model of distinguished
merit and ability. The H–1B is initially valid for three years and
may be renewed or extended once for an additional three years. A
limited number of H–1B visa holders may work on Department of
Defense cooperative research and development projects between
the U.S. and foreign governments. Unlike most temporary worker
visa categories, H–1B workers can intend both to work
temporarily and to immigrate permanently at some future time.
Accompanying spouses of H–1B holders are issued H–4 visas
without work authorization benefits. Labor's limited legal
authority to enforce the program's requirements and weaknesses in
administration leave the program vulnerable to abuse.
In fiscal year 1999, an estimated 21,888 to 23,385 H–1B visas
above the cap were issued due to problems with the computerized
tracking system, and accuracy of the system's use in previous years
is unknown. In the same fiscal year, 60 percent of the awarded H–
1B (new) visas were for IT positions and nearly half of all recipi-
ents were from India. Workers approved for H–1B visas in IT-
related occupations were more likely to be from India and less
likely to be in the United States on another type of visa when
approved for the H–1B program.
In a letter received March 2005 by the Office of Inspector
General, Senator Charles Grassley (R-Iowa) and Representative
John Hostettler (R-Indiana, 8th) requested an investigation of the
grants of H–1B status by the USCIS to more aliens in fiscal year
2005 than statutorily authorized. Of particular question was how
the over-issuance of H–1B visas occurred and whether it was done
in deliberate violation of federal law. The investigation found in
fiscal year 2005 the USCIS approved approximately 6,740 H–1B
visas over the 65,000 cap.
The annual cap at the start of the modern H–1B program in
fiscal year 1992 was 65,000 foreign workers as specified by the
Immigration Act of 1990. That initial safeguard for American
workers has been utterly shattered by Congress. The American
Competitiveness and Workforce Improvement Act of 1998

(ACWIA 1998) raised the annual cap on H–1B visas from 65,000
to 115,000 in fiscal years 1999 and 2000, and to 107,500 in 2001.
ACWIA 1998 would have reverted the cap back to 65,000 there-
after. The sunsetting control and the 2001 cap of 107,500 would
prove hollow.
The American Competitiveness in the Twenty-first Century Act
of 2000 (ACWIA 2000) raised the cap to its highest nominal value
of 195,000 for fiscal years 2001–2003, but the more significant
channel was the breaches to the cap itself. An indelicate oblitera-
tion of the 2000 cap retroactively applied to all petitions received
before 1 September 2000. The last day of fiscal year 2000 was 30
September 2000. The Immigration and Naturalization Service had
announced on 17 March 2000 the receipt of enough petitions to
reach that cap.
Furthermore, ACWIA 2000 added unlimited steadfast exemp-
tions for employers that are an institution of higher education or a
related or affiliated nonprofit entity, a nonprofit research organiza-
tion, or a governmental research organization. ACWIA 2000 did
eventually lower the weakened cap back to 65,000 for years after
2003.
The Consolidated Appropriations Act, 2005 added a new
exemption limited to 20,000 for those with advanced U.S. degrees.
The sloppy wording of the act provides such aliens are exempt
‘until the number *x*x* exceeds 20,000.’ I literally reason a cap's
cap of 20,001, unless several recipients may be added simultane-
ously in a final installment.
The United States-Chile Free Trade Agreement Implementation
Act and the United States-Singapore Free Trade Agreement Imple-
mentation Act became law on 3 September 2003. These acts parti-
tion the H–1B cap. Chile is reserved 1,400 openings, and
Singapore, 5,400 openings, as variant H–1B1 visas. Unused open-
ings become retroactively available as regular H–1B visas of the
same fiscal year, but they must be issued within the first 45 days of
the following fiscal year.
John Miano did an analysis of data from approved H–1B Labor
Condition Applications (LCAs) for fiscal year 2004. He deter-
mined only 4 percent of H–1B applications had a wage in the top
quartile (25 percent) of U.S. workers in the same state and occupa-
tion. Also for computer-related positions, the applications had a

wage $13,000 below that for U.S. workers in the same state and
occupation.
Six years after obliteration of the 65,000 level by ACWIA 2000,
demand was still comparatively high. The regular cap of 58,200
for fiscal year 2006 (October 2005–September 2006) was reached
on final receipt date 10 August 2005. The exemption cap of
20,000 for fiscal year 2006 was reached on final receipt date 17
January 2006. The quickness of reaching the riddled cap describes
an overwhelming supply of foreign workers and an inelastic
foreign labor market in favor of employers.
While the LCA may be for multiple workers, the subsequent
petitions are each for exactly one worker. The same worker may
have more than one petition, but the count of approved petitions is
the best available measure of H–1B recipients. The number of H–
1B and H–1B1 petitions approved by fiscal year for initial and
continuing employment were 136,787 and 120,853 in 2000;
201,079 and 130,127 in 2001; 103,584 and 93,953 in 2002; and
105,314 and 112,026 in 2003; respectively.
An H–1B report to Congress found of approved petitions in
fiscal year 2003:
• nearly 37 percent were for workers born in India,
• 39 percent were for workers in computer-related occupations,
• the median salary of workers was $52,000,
• the median salary of workers in computer-related occupations
was $60,000,
• one half were for workers with a bachelor's degree, and
• 31 percent were for workers with master's degree.
So about 84,762 computer-technology workers were imported
or renewed in 2003 under H–1B to compete for the available 2004
jobs of about 149,000 for computer operators, 455,000 for
computer programmers, 507,000 for computer scientists and
database administrators, 800,000 for computer software engineers,
797,000 for computer support specialists and systems administra-
tors, 487,000 for computer systems analysts, and 77,000 for hard-
ware engineers. The computer-technology labor from H–1B
approvals in 2003 was just over two and a half percent of the
available jobs. Multiply by say four years and H–1B approvals
might amount to ten percent of available computer-technology
jobs.
Across all professions, approved petitions represent a combined

annual salary of $11.3 billion diverted from working Americans to
those granted or extended H–1B status in 2003. If $11.3 billion is
an annual discount price, how much are employers profiting?
The legal protections set against those profits under 20 CFR
Part 655 have been pitiful. Section 655.736 defines two types of
employers. H–1B-dependent employers are defined as already
beyond a threshold level of current H–1B employees who are
neither consultants nor contractors. Willful violators are
employers caught violating their H–1B obligations within the five-
year period before the filing of the pertinent LCA. Only H–1B-
dependent and willful violator employers have obligations specific
to section 655.739 (using revision date 1 April 2006) that begins:
An employer that is subject to this additional attestation obligation
(under the standards described in § 655.736) is required—prior to
filing the LCA or any petition or request for extension of status
supported by the LCA—to take good faith steps to recruit U. S.
workers in the United States for the job(s) in the United States for
which the H–1B non-immigrant(s) is/are sought.
The result is that some employers using H–1B visas may adver-
tise targeted positions to American workers first to meet the
requirement. What constitutes a good faith effort to hire U.S.
workers first is probably less substantial than some recouped
percentage of about $11.3 billion. The hundreds of thousands of
wonderful American jobs taken by the H–1B visa program are the
wound. The wasted resources of Americans replying to disingen-
uous advertisements for jobs that will go to foreigners anyway—
that's the salt. Now it's my turn.
If that isn't enough, the L–1 intra-company nonimmigrant
transfer work visa program has no cap whatsoever. The L–1 cate-
gory applies to aliens who work for a company with a parent,
subsidiary, branch, or affiliate in the U.S. Unlike the H–1B, the L–
1 has no labor certification requirement to ensure that recipients
are paid the prevailing wage and that American workers are not
displaced. Like the H–1B, the doctrine of dual intent applies. The
spouse of an L–1 holder may obtain an employment authorization
under the L–2 classification.
These workers temporarily come to the U.S. as intracompany
transferees to perform services either as L–1A holders in a
managerial or executive capacity, or as L–1B holders in work of
specialized knowledge. Larger multinational entities may expedite
L–1 visa processing with approval of a blanket petition. For both

L–1A and L–1B visas, the initial stay is good for 3 years for trans-
fers to existing offices and 1 year for new offices. The L–1A may
be extended by a two year increment twice for a maximum stay of
seven years. The L–1B may be extended by a two year increment
once for a maximum stay of five years.
A government report said this about the L–1 visa program:
The L–1 program is vulnerable in several respects. First, the
program allows for the transfer of managers and executives, but
adjudicators often find it difficult to be confident that a firm truly
intends using an imported worker in such a capacity. Second, the
program allows for the transfer of workers with “specialized
knowledge,” but the term is so broadly defined that adjudicators
believe they have little choice but to approve almost all petitions.
Third, the transfer of L–1 workers requires that the petitioning
firm is doing business abroad, but adjudicators in the United
States have little ability to evaluate the substantiality of the
foreign operation. Fourth, the program encompasses petitioners
who do not yet have, but are merely are in the process of estab-
lishing, their first U.S. Office, and it also permits petitioners to
transfer themselves to the United States. These two provisions,
separately and in combination, represent “windows of opportu-
nity” for some of the abuse that appears to be occurring.
The same report later described the ‘body shop’ practice using
Indian workers:
From 1999 to 2004, nine of the ten firms that petitioned for the
most L–1 workers were computer and IT related outsourcing
service firms that specialize in labor from India. And although the
L–1 visa program was not intended to benefit any one country,
almost 50 percent of the L–1B (specialized knowledge) petitions
submitted in FY 2005 named beneficiaries who were born in
India.
The 9 said firms of the 10 largest petitioners specialized in
Indian labor were: Tata Consultancy, Cognizant Technology Solu-
tions, Wipro Technologies, Hewlett Packard, I-Flex Solutions,
IBM Global Services, Information Systems Technology, Syntel
Incorporated, and Satyam Computer Services. The exceptive top
10 firm was Honda. Beyond the waste of American talents and
aspirations, such a massive shift of technical reliance to foreign-
born workers weakens the resolve of using rightful native talents
for American economic independence and national defense.
Data on the number of L–1 visa recipients does not appear to be

published by the Government. The number of U.S. Customs
admissions into the U.S. by people, perhaps multiple times, can be
compared. Exclusive of accompanying spouses and children,
admissions of fiscal years 2002–2004:
• numbered 313,699; 298,054; and 314,484 for the L–1 visa;
and
• numbered 370,490; 360,498; and 387,146 for the H–1B(1)
visas; respectively.
As given before, the number of H–1B(1) worker approvals for
initial and continuing employment totaled 197,537 in 2002; and
217,340 in 2003.
The E–3 visa created by the Emergency Supplemental Appro-
priations Act for Defense, the Global War on Terror, and Tsunami
Relief, 2005 is similar to the H–1B as it is for specialty occupa-
tions but with important differences. It is exclusively for use by
Australian foreign nationals, has an initial stay of two years, and is
indefinitely renewable in two year increments. The E–3 is capped
at 10,500 new visas per fiscal year. The spouse of an E–3 holder
may also obtain employment authorization in the U.S. I am unable
to find counts of E–3 visa holders as well.
The H–2B nonimmigrant work visa program allows temporary,
non-agricultural, skilled and unskilled employment of foreigners
which is seasonal, intermittent, a peak load need, or a one-time
occurrence for positions which qualified U.S. workers are not
available. A good summary of the current H–2B program is
explained by this excerpt:
There is also an annual numerical cap of 66,000 on H–2B nonim-
migrant visas for nonagricultural temporary or seasonal workers.
Immigration Act of 1990, Pub. L. No. 101–649, 104 Stat. 4978.
H–2B workers are employed in a variety of fields including hospi-
tality, construction, sports and entertainment. The H–2B cap was
reached for the first time in FY 2004. USCIS announced that the
cap had been reached on March 9, 2004—less than half-way
through the fiscal year—without advance warning and stated at
the same time that it would not accept any further H–2B petitions
for the remainder of the fiscal year. In FY 2005, USCIS ceased
accepting H–2B petitions on January 4, 2005, three months into
the fiscal year.
As with the H–1B program, there are statutory exemptions to
the H–2B cap. Legislation enacted in May 2005, the Save Our
Small and Seasonal Businesses Act of 2005, Pub. L. No. 109–13,
exempts employees who have worked in the United States under
the H–2B visa program in any one of the past three years and who
are returning in FY 2005 or 2006 to work for the same employer.
The bill also divides the annual allotment of H–2B visas into two
portions, with 33,000 being distributed in the first half of the fiscal
year and the remaining distributed in the second half of the fiscal
year.
The same ‘emergency’ act that created the E–3 visa contains the
Save Our Small and Seasonal Businesses Act of 2005 (SOSBA).
The quote states the returning worker must work for the same
employer. The SOSBA provision amends INA 214(g)(9) and says
nothing about the worker returning to the same employer. INA
212(t) and 214(c)(1) do specify that the employer, not the foreign
candidate, submits petitions for nonimmigrant visas of employ-
ment. The end result may let employers domineer a stable of
seasonal workers.
The bi-annual halves (starting October and then April) of the H–
2B cap for fiscal year 2006 were quickly reached on 15 December
2005 and 4 April 2006. H–2B admissions of fiscal years 2002–
2004 numbered 86,987, 102,833, and 86,958 respectively.
Other temporary work visa categories are, or at least were in
2006: H–1C, H–2A, H–3, H–4, J–1, J–2, L–1, L–2, O–1, O–2, O–
3, P–1, P–2, P–3, P–4 Q–1, Q–2, Q–3, R–1, R–2. On a typical day
in fiscal year 2004, legally working nonimmigrants were roughly
704,000 strong. The number of working nonimmigrants by occu-
pation is not available, but the number of nonimmigrants from
India using any type of nonimmigrant visa was estimated at
303,000.
The civilian labor force in June 2006 is estimated at 151.3
million by the BLS. The bureau estimates the labor force from the
Current Population Survey (CPS) and the Current Employment
Statistics (CES) survey. Neither survey is designed to exclude
legal or illegal working aliens. The CPS is a household survey
that may include millions of illegal aliens. The CES uses business
payroll records that could include illegal aliens using fake Social
Security numbers.
As a result, the breakdown of the 151.3 million labor force
includes but doesn't specify hundreds of thousands of recent
employment-based immigrants, 704,000 legal aliens, and undoubt-
edly millions of the 11.5–12 million illegal aliens. About that
many foreign-born workers are undoubtedly here right now. The
labor market supply curve shifts right.
The annual unemployment rate of foreign-born workers was

less than that of native-born workers in 2005, the first time since
the statistical assessment began in 1994. Again, illegal aliens and
legal nonimmigrants are included. In 2005 the median weekly
wage of foreign-born workers was $511, compared to $677 for
natives. Foreigners on balance, it seems, are taking not making
native jobs and pulling native wages down.
5.3 Healthcare 157
5.3 Healthcare
Abington (PA) Memorial Hospital closed the only trauma center

in Montgomery County at the end of 2002 because insurance
carriers were not willing to offer malpractice liability insurance
to doctors staffing it. Since 1999, annual hospital liability
premiums have risen from $7 million to $23 million.
—Pennsylvania State Representative Ellen Bard
Health care is expensive because the vast majority of Americans
consume it as if it were free. Health insurance policies with low
deductibles insulate people from the cost of the medical care they
use—so much so that they often do not even ask for prices.
—Allan B. Hubbard, Assistant to the President for Economic
Policy and Director of the National Economic Council
The first epigraph is from a government study declaring a litiga-

tion crisis as cause of unaffordable and unavailable healthcare.
Assuming malpractice premiums were 1 percent of all healthcare
costs as estimated in 1994, the dollar amount of U.S. malpractice
premiums in 2003 reached $14 billion. At that time the Federal
Government was spending between $33.7 and $56.2 billion per
year for malpractice coverage and the costs of defensive medicine
—treatment to avoid litigation.
A study published in the July–August 2005 edition of Health
Affairs shows in 2002 the United States led the world in healthcare
spending per capita at $5,267. That is 53 percent more than the
next highest rate going to Switzerland. The median per capita
expenditure within our peer group, the 30 developed nations of the
OECD, was $2,073. Our life expectancy ranked only 17th. The
study additionally found high U.S. costs have little to do with liti-
gation. We pretty much know healthcare is exorbitant. The avail-
able evidence only tells us we are not getting our money's worth.
Rampant litigation does not fully explain the situation, unless it
does. What to believe?
Misinformation happens to be the first stage of a takeover
propaganda program, and we have plenty of it. We the people are
inundated with universal rights versus property rights, with correc-
tive income tax adjustments, with free-market efficiencies,
personal responsibility, etc. Doctors are inundated with corporate
medical evaluations and marketing. Doctors don't know what the
national medical standards are because their is no concerted effort
to have national medical standards. The intermediate stage of a

takeover propaganda program is the facilitation of the acquisition
of control. The third and final stage is the facilitation of consoli-
dation and maintenance. Market privileges have been monopo-
lized by the corporate sellers of U.S. healthscare, and I mean with
respect to the buyers of healthscare. The $700 billion bailout
signed by Bush on Friday, 3 October 2008 is demonstrative proof
that the Establishment has acquired general control.
We should not allow propagandists to divorce us from the truth.
The simple truth can only be seen with philosophy. A certain
amount of cruelty is inherent in life. A harsh standard is inherent
in life. Should we preclude individual failure, we dispense with
standards, but because life does not, we guarantee eventual
systemic failure. Without an extraction of vitality from individ-
uals, a social system has no existence. The quality of individuals
and the system must each be sufficient for common ground. Each
responsibility to self, family, and country is critical. To live off the
fruit of your prime earning years in your golden years is a privi-
lege. Some people must die without all the help technically avail-
able because that help is not materially available because others,
but more importantly the person in question, did not materially
contribute enough to society. Helping a poor, defenseless old
person may be helping an extravagant wastrel who by getting old,
a feat on par with biological parenthood, merits your share. There
is effectively a duty to die because the stakes for all of us are life
or death. You will never grasp a solution to the healthcare problem
so long as you exclude the inevitability of death. Dwight D.
Eisenhower, during his interim between generalship and presi-
dency, told us, or essentially told us as portrayed by journalistic
license, “If all Americans want is security, they can go to prison.
They'll have enough to eat, a bed and a roof over their heads.”
Whatever happened to having socioeconomic standards on par
with our technological empowerment, America? The loftier the
civilization, the greater the requisite sophistication.
Modern medicine with certified physicians began around 1910,
the year Abraham Flexner's Medical Education in the United
States and Canada was published. The report had been promoted
by the American Medical Association (AMA). The expense of
healthcare grew with the technology and training into something
prohibitive by the 1920s, when patient pooling schemes matured.
Hospitalization and physician-services insurance plans swept the
5.3 Healthcare 159
nation in the 1930s, producing the respective Blue Cross and Blue
Shield icons. Their respective national associations first formed in
1946 and 1947. Their organizational legacies would unite in 1982
as the Blue Cross and Blue Shield Association. Modern healthcare
has always been expensive. It must be so, depending on your defi-
nition of modern. During the Great Depression, health insurance
through a sizable employer became popular in the United States.
Employee medical benefits had been exempt from corporate
income tax since Woodrow Wilson's reinstatement on 3 October
1913 of income tax, to be assessed on net individual and corporate
income earned on and after the previous March 1st. Such benefits
have remained exempt, implicitly so until the first conditional
requirement regarding the nature of that coverage was effected
with tax year 1982. The position of employers as dispensing
middlemen, already important in proportion to the size of their
patient pools doubling as workforces, was enhanced during World
War II. With price controls in effect and wages nominally fixed, a
health benefits exemption to federal income tax was made in 1942
on individual earnings of that year and thereafter. The AMA had
politically opposed the pooling of employees into (fully) prepaid
health plans during the 1920s and 1930s, and still did. The AMA
was relinquishing its opposition to health insurance both voluntary
and without prepayment. Protecting the retail markup was not an
especially endearing reason for AMA activism, but there were and
are good reasons to oppose prepaid insurance. I go further and
oppose virtually all modern aspects of health insurance. The
biggest problem with a health insurance system is the pleasant
mask of denial it affords the glorified social dilemma of death: to
wit, funding shortages predictable to the actual thinker are slowly
evident and quickly systemic to Joe Public. Analogously, the
preservation of human life until human bodily systems, generally
without over design of one to another, will readily and multitudi-
nously fail is a real triumph turned into a utopian failure. As will
be explained shortly, health insurance that segments the healthcare
market or is government-mandated is intrinsically destructive.
Vehemently the AMA resisted President Harry Truman's
national health insurance initiative as ‘socialized medicine’, back
when Americans construed all things socialist as pejorative. In the
1950s the ubiquitous one-price-fits-all plans that made Blue Cross
an icon began to give way to the price-fits-profile plans of
commercial insurers. The distinction Blue Cross plans made
between workers and retirees was eclipsed. The healthy, offered

lower rates and often working, could afford coverage unlike the
sick, often retired and elderly: a catch-22. Healthcare market
segmentation was not confined to health insurance. In hindsight it
is apparent that the virtue of healthcare market segmentation—
characterized by economy, individualism, natural selection—
favors sellers with such voracity that market forces and buyers
with them must inevitably be divided and conquered. Human
labor units are subject to liquidation pressures commensurate to
depreciation. This is typical of laissez faire. Corrupt elites covet
your production and loathe your consumption. Politicians have
been complicit in the sham of supposing that private U.S. health-
care has been operating as a free market since it has been a viable
possibility and glaring need, certainly by the 1950s.
Commercial insurers focused on the healthy who could pay, not
the elderly or poor. President Kennedy proposed a new ‘Medicare’
program for the elderly, but it was his successor Lyndon B.
Johnson who triumphantly signed Medicare and Medicaid into law
on the evening of 30 July 1965 at the home of former President
Truman. The haplessness of able-bodied poor for having or being
child dependents and the haplessness of the aged poor for being ill
prepared after living their able-bodied years was equated with the
haplessness of the poor who were blind or were permanently and
totally disabled. That federally institutionalized reward for general
indigence, an addition to the Social Security Act, has been an
appendant, ticking time bomb ever since. When Johnson gave his
signature the federal portion of U.S. spending on healthcare was
11 percent. In 2006 it was 33 percent. Health management orga-
nizations (HMOs) were, with the help of President Nixon, a finan-
cial paradigm gaining federal support in 1973. Nevertheless,
HMO regulations varied by State, and enrollment was offered
through sizable employers. President Reagan permitted govern-
ment funding of HMOs to expire at fiscal year's end September
1981. Deregulation of savings and loans would work about as
well. HMOs endowed executives with control of heathcare
resources as gatekeepers, and Wall Street began building publicly
traded HMO business empires in the early 1980s. Concurrently,
they built for-profit hospital monoliths too. One could reasonably
posit that the unadvertised price discrepancy between insured and
uninsured care became widespread policy around the early 1990s.
5.3 Healthcare 161
Figure 5.1 U.S. Healthcare Spending Trends

50%
Fed., State, and Local Gov. % of Healthcare Spending
45%
40%
35% Fed. Gov. % of Healthcare Spending
Percentage
30%
25%
20% State and Local Gov. %
of Healthcare Spending
15%
10%
Healthcare % of GDP
5%
0%
0
4
196
196
196
197
197
198
198
198
199
199
200
200
Years
By the mid-1980s denial of emergency care based on ability to

pay became a national concern. The so-called patient dumping, a
hyperbole when used generically by bleeding hearts, was
addressed by Congress with an amendment to Title XVIII of the
Social Security Act (the Medicare part) signed into law by Presi-
dent Reagan on 7 April 1986. Emergency treatment was guaran-
teed to ‘any individual (whether or not eligible for benefits under
this title).’ The guarantee did not come with government funding.
The closest thing to an official short title for legislation containing
the amendment, at the time, was the short title of the containing
title: Medicare and Medicaid Budget Reconciliation Amendments
of 1985. Subsequently, perhaps first during the 106th Congress
(1999–2000), Congressional bills dubbed the provision Emergency
Medical Treatment and Active Labor Act (EMTALA), but in late
2008 that terminology has had statutory expression only in ad hoc
use by a single law enacted late in 2003, to be identified shortly.
EMTALA is popularly used without explanation, unlike here.
Illegals were not excluded from the guarantee of emergency
treatment, making a nice contribution to the federal enticement
package of 1986. Elaboration about the centerpiece of that
package is deferred. Another package perquisite was the $45.4
million allocated to migrant health centers for fiscal year 1987 and
the same amount for fiscal year 1988. Illegals and the owners and
executives of construction and agricultural companies were no
doubt pleased. Federal subsidy for the establishment of migrant

health centers began in 1962, but that 99th Congress was really
working hard with President Reagan for the American people in
1986. We have the statutory artifacts of calendaric accolade to
prove it. I could drone on about the designation of October 1986
as Crack/Cocaine Awareness Month or 5 December 1986 as Walt
Disney Recognition Day or 12 August 1987 as National Civil
Rights Day, but why? Isn't it enough to muse the bygone designa-
tions of 21 June 1986 as National Save American Industry and
Jobs Day, of 3 July 1986 as Let Freedom Ring Day, of 4 July 1986
as National Immigrants Day, of 21–27 September 1986 as Emer-
gency Medical Services Week, and of 17 May 1987 as National
Tourism Week. Ah, the memories. And on 21 August 1986 the
debt ceiling was raised with a signature from whatever value not
specified by the enacted bill to $2.111 trillion. I guess it could
have been lowered. Is it a fifty-fifty shot if the act doesn't specify?
As every Westerner not suffering from actual physiologic retar-
dation should know, price controls that block market forces lead to
shortages. Via EMTALA was legislated a price control of $0.00
for frigging surgery. The long and short of this is that American
small entrepreneurs, workers, and patients were at a control disad-
vantage, a market disadvantage, a freedom disadvantage. Prices
went north. Between 1980 and 1990 general U.S. price levels rose
60 percent, but prices for hospital and related services rose 160
percent, prices for prescription drugs and prescription medical
supplies taken together rose 150 percent, and prices for physicians'
services rose 110 percent. In the late 1990s seniors paid for bus
services tailored to the purchase of lower priced pharmaceuticals
in Canada and Mexico. In the late 1990s employers began
sloughing off costly medical benefits, not just to current workers
but to retirees as well. Gradually, piecemeal, subsequently, the
legs of the undomesticated working class, too rich for government
coverage and too poor to protect themselves, were cut down, one
medisurf at a time, for the leisure of royal politicos and robber-
baron healthocrats. The city coextensive with the District of
Columbia should have been renamed a decade ago to protect the
memory of George Washington.
President Bush pushed through and on 8 December 2003 signed
the Medicare Prescription Drug, Improvement, and Modernization
Act of 2003 (MMA). The act made ‘improvements’ to the turd it
labeled EMTALA and initiated the creation of a temporary
5.3 Healthcare 163
EMTALA Technical Advisory Group (TAG). The TAG submitted

their final report of recommendations on 2 April 2008, judging by
the letter of transmittal therein. Should you look at the report, you
will marvel that a turd could take on that much polish. The MMA
also appropriated $250 million for emergency room treatment of
illegals for each of the fiscal years 2005 through 2008. That
money is doled out to the States based on the State-by-State distri-
bution of the undocumented alien population as determined by the
Immigration and Naturalization Service and the State-by-State
distribution of undocumented alien apprehensions determined by
the Department of Homeland Security. News-making arrests of
illegals during the pertinent statistical period may have involved
State competition for federal monies. Problem solved. Further-
more, because of the act, seniors were inundated with a compul-
sory menu of bewildering and constrictive, but wonderfully
numerous, choices. The choice of buying drugs from Canada and
Mexico remained illegal but with the new pretense for American
consumers of a waiver from the Secretary of Health and Human
Services (SHHS), good for Canada only. The circumstance that
should be insulting to Americans retired and working alike is that
most (illegally) imported prescription drugs are produced in the
United States. Replaced was certain legislation enacted 28
October 2000 purporting to legally permit the purchase of
prescription drugs from many foreign countries with forthcoming
regulations from the SHHS, Donna Shalala for the final few
months of the Clinton presidency and Tommy Thompson of the G.
W. Bush cabinet. It will be helpful to know that the waiver provi-
sion enacted by the MMA was done by amending the Federal
Food, Drug, and Cosmetic Act (FFDCA). The waiver provision
lends itself to the deft restriction and approval of drug importation
to the most inflammatory and self-serving degree feasible in accor-
dance with prevailing public sentiments. As year 2003 was
waning the Cities of Boston and Springfield in Massachusetts, and
the State of New Hampshire were importing prescription drugs in
violation of federal law.
Governor Rod R. Blagojevich (D) of Illinois, with support from
Representative Rahm Emanuel (D-Illinois, 5th), announced on 20
April 2004 that his State was pursuing the importation of prescrip-
tion drugs from Europe to counter the move of at least five CEO's
from big pharmaceutical companies who had reduced their sales to
Canada. Another source identified four of those five companies:
AztraZeneca, GlaxoSmithKline, Pfizer, and Wyeth. Representa-

tive Emanuel avowed, “While the pharmaceutical companies
continue their efforts to thwart importation, they will not break the
resolve of the millions of Americans who rely on importation for
safe and affordable prescription drugs.” The Food and Drug
Administration (FDA) and the federal executive it fronts have
since won several rulings from federal courts supporting the de
facto ban on imports. The FDA rejected a waiver request from
Washington State with a letter dated 17 March 2006. The letter, in
reference to the FFDCA, stated:
Virtually all prescription drugs imported for personal use into the
United States from Canada violate the Act because they are unap-
proved new drugs (21 U.S.C. § 355), labeled incorrectly (21
U.S.C. §§ 352, 353)), or dispensed without a valid prescription
(21 U.S.C. § 353(b)(1)). Importing a drug into the United States
that is unapproved and/or does not comply with the labeling
requirements and dispensing requirements in the Act is a prohib-
ited act under 21 U.S.C. §§ 331(d), and/or (a) that may be
enjoined or prosecuted.
Today drug companies boost sales in the United States with a
preponderance of television commercials, made possible with deep
pockets, high profit margins, and regulatory changes made at the
FDA in 1997 and 2001. Every time you are engaged by a pharma-
ceutic giant's commercial, you should hear a sucking sound
reaching for your material means. The overhead of government-
run Medicare is less than that of private American healthscare,
even though fraudulent billing of Medicare must be tens of billions
of dollars annually, and even though Congress prohibits Medicare
from negotiating prices with drug companies. The FDA is nothing
but a taxpayer-funded fluffer specialized for healthocrats of the
pharmaceutical sector, like the parent U.S. Department of Health
and Human Services (DHHS) is for healthocrats generally. You're
just ass meat but you're not alone.
Doctors are inadequately compensated by third-party
middlemen, ultimately the royal politicos and robber baron
healthocrats. Nor do doctors understand current healthcare stan-
dards in the United States because, again, there are none. Despite
involvement of the Federal Government, healthcare regulations are
a State-to-State patchwork. The billions of dollars spent on
research by pharmaceutic giants are rigorous in profitability not
5.3 Healthcare 165
scientific objectivity. The healthocrats pay doctors well for only

one thing: drug prescriptions. Doctors have become labor units
and drug pimps.
Nurses are overworked labor units as well. I am told the
turnover is high. The nursing shortage is a lie. With the heavy
workloads, mistakes are inevitable. If they should come to light,
the nurses will be the scapegoats. Mistakes don't come to light
easily because mistakes are legal liability. Serial killing nurse
Charles Cullen killed scores of patients over a 16-year period and
10 hospitals before he was finally nabbed by authorities on 12
December 2003. Tort lawyers, like healthscare CEOs, are killing
us!
In 1968 three physicians, Thomas F. Frist, his son Thomas F.
Frist, Jr., and Jack Massey began a hospital management company
named Hospital Corporation of America (HCA). The company
was taken public the next year, via the usual initial public offering
or IPO. At year's end HCA owned 26 hospitals and 3,000 beds.
The healthcare industry experienced rapid growth during the 1970s
and 1980s. In 1987 HCA owned 225 hospitals and managed
another 208. Subsequently, the company changed its legal form,
participated in mergers and acquisitions, and changed its name.
Dr. Thomas Frist, Jr. has been chairman and CEO of HCA and a
member of the board of directors at IBM. Late in 2008 he was a
member of HCA's board and its committee on compensation. He
was also chairman of the Board of the Frist Foundation. In 2008
the foundation, according to its website late that year, donated
thousands of dollars to many individual causes in the Nashville,
Tennessee area and millions more to support the Frist Center for
the Visual Arts. Dr. Frist's son, Thomas F. Frist, III, was on HSA's
board and its committee on audits and compliance. For recreation
he likes tennis, skiing, golf, and aviation.
The Frists are a very distinguished family, and HCA Inc. is a
very distinguished company. William H. Frist became a physician
like his father and co-founder of HCA, Dr. Frist, Jr. Bill special-
ized in heart and lung transplants. In 1994 he was elected to the
U.S. Senate as a Republican from Tennessee, about three years
before the U.S. Department of Justice publicly announced it was
investigating HCA. Bill was reelected in 2000 for his second term
and became majority leader in 2003. He served in that capacity
until his second term expired on 3 January 2006, not having
sought a third term. Just after reelection for his second term, on
December 14th, HCA agreed to pay more than $840 million to

settle charges of fraudulent billing of Medicare, Medicaid, the
Defense Department's TRICARE healthcare program, and the
Federal Employees' Health Benefits Program. The upshot was
$900 million, including $60 million for interest charges, paid in
2001. Much of the settlement was due to whistleblowers, people
who file civil lawsuits seeking part of an award not compensatory
for a wrong that they have necessarily sustained. On 26 June 2003
HCA agreed to pay another $631 million for additional charges of
fraud but related to the same investigation. It was paid that July
with $10 million more in interest charges. Then there was $250
million paid the previous June to the Centers for Medicare and
Medicaid Services (CMS) of DHHS. The total came to $1.79
billion, easily a record recovery for an investigation of healthcare
fraud in the United States. Still, there was the settlement with the
States, also made in June. For that was paid a measly $17.7
million to state Medicaid agencies and another $33 million for the
legal fees of private parties. (I hope you have found the three-
fifths size of the private share troublesome.) Senator Frist's former
Chief of Staff, W. Lee Rawls, was appointed Senior Counsel (legal
adviser) to the Director of the Federal Bureau of Investigation
(FBI) in September 2007. The FBI, a bureau within the Depart-
ment of Justice, assisted in the investigation of HCA Inc.
The FBI's participation was part of the Health Care Fraud and
Abuse Control Program. The program has channeled, more or less
recycled, transfers of around $10 billion from U.S. healthscare
back into the Medicare Trust Fund (a.k.a. Hospital Insurance Trust
Fund) for the first decade of its existence, begun in 1997. How
much it cost to get those billions is not likewise specified by the
executive summary of the program's 2006 annual report. The
annual executive summaries tell us the total of trust deposits for
their respective fiscal years. Recent figures are $0.7 billion in
fiscal year 2003 and $1.5 billion in each of the fiscal years 2004,
2005, and 2006. From the annual reports for fiscal years 1998–
2006 I calculated totals of $2.0 billion for ‘allocated’ funds, a rela-
tively small $19.5 million for additional ‘obligated’ funds, and
$843 million for the FBI. Crude calculation suggests that the over-
head, exclusive of the judicial branch, for recovering say $10.4
billion was roughly 28 percent. The annual reports detail alleged
wrongdoings. Here's a fun one from the fiscal year 2006 report:
5.3 Healthcare 167
Tenet Healthcare Corporation, operator of the nation's second

largest hospital chain, agreed to pay the United States more than
$900 million for billing practices that were alleged to be unlawful
in lawsuits filed by whistleblowers. Under the agreement, Tenet,
which is headquartered in Dallas but operates dozens of hospitals
throughout the United States, will pay a total of $900 million over
a 4-year period, plus interest, to resolve various types of civil alle-
gations involving Tenet's billings to Medicare and other Federal
health care programs.
Exposing all this is laudable of course, but it's only a monetary
overhead to healthocrats. For you it's subjugation.
Fraudulent billing of socialized medicine is hardly a crime
against humanity. The same results are obtained legally when the
government defrauds itself. The truly cruel healthcare scheme
entails the collection of monies in exchange for healthcare
promises and not meeting those promises in a timely and sincere
manner. CEOs are able to run middleman healthcare companies,
companies that financially separate patients from providers, like a
personal ATM and exit with a massive withdrawal that is not
touchable. Our politicians permit the financial engineering. Left
behind are broken portions of our economy and broken lives.
Insurers do everything they can to minimize expenses, except on
their annual incomes as executives measured in the millions.
Insurers make processing notices look like bills. Hospitals, even
non-profit ones, regularly charge four or more times for insured
care than for uninsured care. Medisurfs, those who receive debt
peonage with their treatment, find their wages garnished, their
houses seized, and their selves arrested. If cops arrest by the book
—and forget discretion since everyone is equal—then patients
indebted by figures calculated in Monopoly money are treated like
drug dealers and murderers who aren't healthscare executives.
MMA, the aforementioned Bush healthscare act, created a new
type of trust fund for healthcare expenses called a health savings
account (HSA). These trusts permit tax-free contributions from
employers and employees alike. The catch is that you hirelings
must put your fate in a high-deductible health insurance plan. Be a
smart shopper now ya hear. This counter-corrective regulation is
like all the others: another noose-like coil restricting your freedom
and distracting you from your real afflictions. The tax break of
course favors those who have money to begin with, not the
working poor who are so much grist. As Bush's healthscare
henchman told us in 2006—recall this subchapter's second
epigraph—Americans consume as if healthcare were free. There I

was thinking that's what the politicians did with every manner of
goods and services.
Healthcare is a sector of the economy, so it involves resource
allocation, complete with oft disparaged redistribution. Because of
the pesky law of conservation, the allocation can range from
extremely concentrated to extremely spread and thin, from high-
tech elitism to mundane plenty. Neither extreme is just. Neither
extreme is without the strain of metastasizing success. U.S.
healthscare is a three-tiers-is-a-crowd system: high-tech elitist
healthcare, medisurf healthcare, and welfare healthcare. The
middle tier is being consumed while foolish Americans debate
between plutocratic and socialist ruin. The American Dream is
extinguished when the working-class tier crumbles to ground
level. Six score years ago railroad robber barons exploited the
American population with an incomparable socioeconomic infras-
tructure: railroads, petroleum supply and distribution, trusts,
courts, police. Small customers were arbitrarily charged, and
workers of the various lines were reduced to below subsistence.
Today, with healthscare, all workers face arbitrarily high health
insurance costs, and nonelite patients are reduced to below subsis-
tence. Wal-Mart executive M. Susan Chambers suggested to the
company's board in an internal memo circa 2005 that their
niggardly paid employees, lovingly called ‘associates’, should be
made to do physical tasks to deter the weak and reduce the compa-
ny's healthcare costs. Certainly logical given the economic envi-
ronment, but that's exactly the problem! The United States has
become a nation-sized labor camp, and judging from what Nazi
labor camps were, the exploitation is far from its maximal poten-
tial. The possibility of a national implosion triggered by U.S.
healthcare, as with U.S. banking and finance, is real.
Healthcare is not a right because it's not free, but the opportu-
nity to pursue healthcare free of exploitation is—for a worthily
insistent citizenry that is. If individuals are not allowed to fail and
succeed, social systems must degenerate below First World stan-
dards. One of the most insidious lies is that health insurance is a
right. It's a mental retard's position. It assumes there is always
enough prosperity to go around if only we spread it sufficiently.
That thing with Jesus, bread loaves, and fishes: most people call it
a miracle not a foodcare system. The idea of a right to insurance
conveniently ignores the necessities of wealth production and
5.3 Healthcare 169
personal responsibility. Insurance is essentially a pyramid scheme

applied to static construction; it can't make pigs fly. Inherently
insolvent beyond a certain claim cost, it must continually borrow
solvency and become more oppressively hierarchical, or it must
collapse. Throwing money at high-tech research, that is artificially
removing entrepreneurial risk from high-tech research by govern-
ment involvement or slickly advertised slavish charity increases
the economy's insolvency and peaked stratification. Do you want
the interpretation of your genetic code to be a medical company's
intellectual property? But wear your colored ribbons and play
with your pink tennis balls. High-tech healthcare is sexy to those
who think nothing of making available the technology we already
have. It's time to get beyond the propaganda. It's time to stop
supplicating feelings, to start vetting ideas, and to adjust one's feel-
ings accordingly.
The issue is to make healthcare producible, profitable, and
purchasable. The causes of our healthcare affliction largely reduce
to four ideas. Firstly, the impersonal methods of our healthcare
system have eliminated care from the system. Secondly, the totali-
tarian control of supply and debt collection has increased the price
of healthcare. Thirdly, the socialistic flood of government dollars
has increased the price of healthcare. Fourthly and finally, the lack
of a properly regulated and formed marketplace has increased the
price of healthcare. (A free marketplace operates only according
to certain principals of transparency and accountability, regardless
of what card-carrying Republicans may say.) Each idea shall now
be expanded upon in turn.
The patient-doctor relationship must be restored medically and
financially. There must be face time and personal discretion to
evaluate the sincerity and risk from the other party. Our banking
crisis of October 2008 demonstrates the same disastrous imperson-
ality, part of the general decline of American culture. Codes and
calculations reward patients who least make the grade and execu-
tives who make the grades least rewarding. The frictional costs
between patients, doctors, and administrators not only prevent the
delivery of healthcare but further damage the capacity to provide
healthcare at all. The custodians of healthcare may serve the
master money or the master compassion, but not both.
The healthcare executives in it for the money must be removed.
Santa is not here to make a list and check it twice for you.
Correctly identifying them and their deeds is your responsibility.
They should be penalized to the point of net loss for their troubles,
or their examples will encourage rather than discourage potent
inhumanity, and their values will procreate with our stolen riches.
Crime should not pay. Seize their ill-gotten gains. They are the
healthocrats in government and business, and they are banksters of
healthscare. Any outright crimes against American humanity
deserve the best treatment. My in-house medical research indi-
cates cranial aspiration. That diagnosis is based in part on propri-
etary risk-management software able to reduce ponderous
executives to actionable statistics creating greater market efficien-
cies and better healthcare.
It should be impossible to get rich by administrating or
managing the delivery of healthcare services or the creation and
delivery of pharmaceuticals. The only people who should get rich
in healthcare should be the people who develop or provide treat-
ment personally. C-corp ownership of healthcare businesses
should not even be possible. That means ownership of healthcare
should not be a publicly traded speculation, far more than owner-
ship of our roads and bridges should not be, which thankfully
aren't. Hospital ownerships should be kept small and numerous,
so owners are not too big for personal accountability to the vested
people of the communities involved.
The government money for public healthcare unrelated to
national emergency must be shut off. Government money prices
working Americans out of their freedom to earn healthcare, just
like education. Hillarycare is not the answer, though it goes
slower to perdition than laissez faire does, which I suppose is
sufficient for a selfish population of patients. The selfish popula-
tion of executives are the more noxious part of the pairing, for
sure, until you realize that when the rank and file have themselves
in one hand and are playing with a remote in the other, that is the
culture, and that is the executive culture at the helm of our socio-
economic means.
Laissez-faire regulation must be replaced with national market-
making regulation. Hospitals hide their price schedules and get
away with it. American drug companies charge for foreign distri-
bution less than they charge domestically. That rape of fellow
Americans would be socially unacceptable to a great people; it
should be impossible; socialist suffocation is not the answer.
Creating free markets is pretty much in the job description of a
modern society's government. Communist China has free markets,
5.3 Healthcare 171
maybe not perfectly so and maybe not in many venues, but look
who's talking hypocritically if you're reprehensive. Essentially,
everyone should be in a large healthcare network—it's called a
fucking marketplace for healthcare, everyone! We are permitted
no transparency. We are divided and conquered yet again. It is
unconscionable to charge the unchampioned working poor, the
pillars of our freedom and affluence, five times what is charged
under the purview of a corporate giant or giant government.
Healthcare market segmentation, whether by government or by the
private sector, will always result in evil.
The politics of healthcare standardizing and economizing must
be insulated from power politics, as much as possible. Gee, how
could we do that? It's pretty obvious to anyone who has taken the
time to study how America works: we need a Fed-like regulator of
healthcare, but one without the pretense of being a non-govern-
ment agency. The Fed's budget, with the theoretical inflation tax
in terms of percentage of real dollar value lost, should be part of
the U.S. Government's budget. A Healthcare Fed would standard-
ized medical treatments and billing schedules, would inspect, rate,
and license healthcare providers, and publish its administrative
form and processes, industry regulations, and industry findings in
a transparent and readily accessible manner. For the first time the
United States would have a national market of healthcare. Any
elasticity that may occur is achieved by limiting patients to their
own money, and the providers too. It is the social linchpin of the
whole thing, what bleeding hearts love to ruin. Don't die away
mad, just die away. I will expound upon the destruction of the
Western world by bleeding hearts later, after this battery of self-
diagnostic tests on your mind is completed, when you are prepared
to appreciate the cure.
Franklin Delano Roosevelt (FDR) had a ‘yardstick’ approach to
government spending that as easily adapts to government assess-
ment of private healthcare spending, and we know how bleeding
hearts feeeeeeel about FDR. His idea was that the government
should run an enterprise in the same business as the vendors from
which government made purchases. The government-run business
was a yardstick to gauge reasonable costs. Well, the U.S. Govern-
ment has its own healthcare. There is no reason a Healthcare Fed
could not determine what the reasonable expense of heart bypass
surgery is, allowing for case-to-case variations, with an empirical
cost schedule modeled on a billing schedule. Neither is there a
reason prevailing average market price could not be determined.

If the difference, a rough idea of profit margin, were to prove that
even without the perversions of endless government money and
healtharchic extortion that an actual national free market of health-
care is inelastic, at least in certain respects, price caps allowing for
a theoretical 50-percent profit margin could be set.
Affordable healthcare for all can never derive from an economy
by definition. Money betrays the requirement to economize.
Healthcare leading to supply shortages for consumers nominally
able to pay is too inexpensive. Healthcare leading to demand
shortages from consumers able to support a competitive profit
margin is too expensive. Segregation of healthcare consumers
only obfuscates the necessary idea: freedom to earn healthcare.
What we have now can only implode sooner or later. Solving the
cost and corruption crisis means imposing a marketplace environ-
ment and supplementing natural market forces with artificial force
only as needed, if at all, like we do with utilities. This mix of
market forces is to have a price bias toward the optimal middle
ground yielding the maximum but nonetheless limited benefit to
society in the big scheme of things. We could call this approach, I
suppose, Jeffersonian healthcare.
5.4 The Oil Industry 173
5.4 The Oil Industry
The objection that a rich man, if drafted, can buy a substitute,

while the poor man, with a large family depending upon him, must
go, if of any weight at all, lies against the whole structure of
society, which gives the rich man at every step immunities over
the poor man.
—Joel Tyler Headley (1813–1897), American writer
What the future may hold in store for the American farmer is by
no means clear, but there is much evidence to support the opinion
that neither the Republicans nor the Democrats will risk another
Populist revolt by withholding the subsidies that now contribute
so heavily to our agricultural income.
—Theodore Saloutos (1910–1980) and John D. Hicks (1890–
1972), historians
The 4th quarter of 2004 produced a quarterly profit record of

companies publicly traded in the United States. That record holder
was ExxonMobil at a $8.42 billion profit. Not to be outdone,
Royal Dutch Shell plc later broke that record in the 3rd quarter of
2005. Well, they were outdone by Exxon netting $9.92 billion the
same period. Again Exxon set a new record, of $10.71 billion, the
very next quarter.
So let me get this straight. As oil prices rise, the raw material
costs to gasoline suppliers rise. The cost pushes up consumer
prices because oil companies must stay profitable by protecting the
profit margin. Higher consumer prices will tend to push down
sales volume and squeeze the profit margin against the higher raw
material costs. Therefore, oil companies have record profits. Isn't
it gouging?
An analysis of average U.S. weekly prices for regular gasoline
and average weekly world spot oil prices provides an insight.
Dividing by 42 will convert price by the barrel (bbl) to the gallon.
The per gallon difference from the price of world spot oil to U.S.
regular gasoline represents the markup for refining and distribu-
tion, actions referred to as downstream operations in oil industry
jargon. Downstream markup as a percentage of the raw material
oil cost would increase with price gouging. Figure 5.2 shows
gasoline and oil prices in dollars per gallon and the downstream
fractional markup (1 = 100% increase) between the two.
Figure 5.2 World Oil and U.S. Gasoline Prices
4.50
4.00
3.50
3.00
2.50
2.00
1.50
1.00
0.50
Dollars Per Gallon or Markup Fraction

0.00
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Years
174NNNNNNNNNmxxi5.xiSOCIOECONOMICfVERITYNNNNNNNNNNNNNxr
Table 5.4 ExxonMobil 2005 Summary Annual Report Data
Upstream Functions: Exploration, Development, Production, Year
and Gas and Power Marketing 2005 2004 2003 2002 2001
6
Earnings, $10 's 24,349.0 16,675.0 14,502.0 9,598.0 10,736.0
Liquids Production, 103 Barrels Per Day 2,523.0 2,571.0 2,516.0 2,496.0 2,542.0
Natural Gas Production Available for Sale,
106 Cubic Feet Per Day 9,251.0 9,864.0 10,119.0 10,452.0 10,279.0
3
Oil-Equivalent Production, 10 Barrels Per Day 4,065.0 4,215.0 4,203.0 4,238.0 4,255.0
Proved Reserves Replacement, % 129.0 125.0 107.0 118.0 111.0
Resource Additions, 106 Oil-Equivalent Barrels 4,365.0 2,940.0 2,110.0 2,150.0 2,490.0
Average Capital Employed, $106 's 53,261.0 50,642.0 47,672.0 43,064.0 40,029.0
Return on Average Capital Employed, % 45.7 32.9 30.4 22.3 26.8
6
Capital and Exploration Expenditures, $10 's 14,470.0 11,715.0 11,988.0 10,394.0 8,816.0
Downstream Functions: Refining and Supply, Fuels Marketing, Year
and Lubricants and Specialties 2005 2004 2003 2002 2001
6
Earnings, $10 's 7,992.0 5,706.0 3,516.0 1,300.0 4,227.0
3
Refinery Throughput, 10 Barrels Per Day 5,723.0 5,713.0 5,510.0 5,443.0 5,542.0
Petroleum Product Sales, 103 Barrels Per Day 8,257.0 8,210.0 7,957.0 7,757.0 7,971.0
6
Average Capital Employed, $10 's 24,680.0 27,173.0 26,965.0 26,045.0 26,321.0
Return on Average Capital Employed, % 32.4 21.0 13.0 5.0 16.1
6
Capital Expenditures, $10 's 2,495.0 2,405.0 2,781.0 2,450.0 2,322.0
NNNNNNNNNNNNNNNmi5.4xiThefOilfIndustryNNNNNNNNNNNNxxr175
As you can see, the downstream operations of the oil industry

are steadily more efficient and therefore not gouging. Sure,
limited gouging may occur briefly (say, after Hurricane Katrina
squarely struck the peninsular Mississippi River Delta and New
Orleans on 28–29 August 2005), but the national trend is other-
wise. If American gasoline consumers are not being gouged
downstream, then the only place for mass gouging is upstream on
the world oil market. Exxon set in 2005 the annual profit record
for a company publicly traded in the United States. Data from
ExxonMobil shown supra in table 5.4 provides an eminent case
study about the period's record oil profits.
The sharp increase in profits is not attributable to upstream
production volume, nor downstream gouging as expected. The
return on average capital employed stands out. This could mean
increased efficiency as with downstream margins in the U.S. gaso-
line market. That would explain the measly two billion increase
downstream year over year. Higher return on average capital
upstream could also mean a larger sales price upstream. We saw
oil prices go substantially higher, but somebody's swanky bottled
water has always cost more.
Greater efficiencies are commendable and encouraging. Yet
with China and India building refineries to endow billions and
with the potential of upstream sabotage, the possibility of world
crude prices going and staying higher is very real. If we are to
remain in a leadership position, we must reinvent the economy
they now emulate and get off oil.
Before trusting this as an accurate interpretation of gouging
reality, a final aspect to consider is tax policy. The Working Fami-
lies Tax Relief Act of 2004, signed into law by the President Bush
on 4 October 2004, retroactively extended four energy tax subsi-
dies as part of a $146 billion package of tax breaks for the middle
class and businesses. One extended subsidy was for oil and gas.
The other three subsidies were for feel-good energy. The Amer-
ican Jobs Creation Act of 2004 (AJCA), signed on 22 October
2004, contains several energy-related tax breaks. The Energy
Policy Act of 2005 was signed by the President on 8 August 2005,
giving a net energy tax cut of $11.5 billion ($14.5 billion gross
energy tax cuts, less $3 billion of energy taxes). Inflation alert!
The bonus is that the profit margins on domestic oil were
increased without much increase of supply.
No, relax. The current energy tax structure is, or at least during
the mid-2000s (mid twenty-singles) was, dominated by revenues
from a long-standing gasoline tax and by tax incentives for alterna-
tive and renewable fuels supplies relative to energy from conven-
tional fossil fuels, so originated we are told. Never mind that
Treasury Secretary John Snow described the AJCA as filled with
provisions for ‘special interests’. On 25 April 2006 the Congres-
sional Joint Committee on Taxation estimated oil and gas compa-
nies would benefit over the next five years from about $10 billion
in tax breaks specifically targeted at their industry, according to the
New York Times. According to a press release the following month
by Senator John Kerry (D-Massachusetts) and Representative Jim
McDermott (D-Washington, 7th), the same committee had esti-
mated $5 billion in tax breaks was accruing to Big Oil within a 10-
year period, at least $1.4 billion more than previous estimates
(whichever ones), because of the Republican majority.
So what kind of legislative writing skills could make $1.4
billion hard to spot? The American Jobs Creation Act—I love the
title—added complexity to the tax code with effective dates span-
ning time before, on, and after the bill's enactment date. The
complexity was coupled with consequences good and bad for busi-
nesses and required immediate attention.
The net cost of the AJCA law to the federal budget was zero by
perverting a technique called ‘sunsetting’. Permanent revenue
provisions are balanced against ostensibly temporary tax breaks.
An extension of the temporary tax cuts is deemed likely and by
some estimates would cost $500 billion or more. The AJCA was
the fifth major tax cut in four years. More acts have followed, and
as I write this President Bush just signed a $70 billion tax cut bill
on 17 May 2006.
In a speech 25 April 2006, President Bush presented his four-
part plan to confront high gasoline prices. He called on Congress
to repeal what he dubbed unnecessary tax breaks for energy
companies totaling about $2 billion over ten years. The President
had yet to veto any bill, including those with unnecessary tax
breaks.
I wasn't planning to make this a discussion about tax code. As I
was saying, so maybe gouging is not at the pump. But vigilance,
please. You might wish to patronize independents of the gas busi-
ness. The American Downstream Oil Industry has consolidated
due to excess refinery capacity in the 1980s and 1990s. The major
firms are vertically integrated. This vertical efficiency is naturally

not passed to the consumer without competition from independent
(i.e. vertically challenged) refiners and retailers:
In vertically concentrated markets where refiners are able to price
discriminate in wholesale prices (charge different wholesale prices
to their lessee or contract dealers), station level wholesale prices
as well as retail prices are significantly lower in the presence of
unbranded competitors.
The oil industry is very powerful, obviously. Is it any wonder
the Bush family ties together the oil industry, tax law, the CIA, and
foreign policy in the Middle East? Big Oil has this much power
because they handily address our God-given right to the open road,
formerly priced around $1.50 per gallon. While the typical U.S.
price of premium gasoline on 15 May 2006 was $3.15 per gallon
according to the Energy Information Administration (EIA), the
countries of Belgium, France, Germany, Italy, the Netherlands, and
the United Kingdom averaged between $6.32 and $7.12 per gallon,
a difference largely due to taxation. Stability in the Middle East to
Americans pragmatically means keep-the-oil-coming not foreign
social harmony. Here is illustration of the money and power flow
circa 2001:
Shortly after 9/11, NATO forces raided the Saudi High Commis-
sion for Aid to Bosnia. This so-called charity was founded by
Prince Salam bin Abdul Azia, supported by King Fahd. On this
raid, authorities discovered plans for further terrorist attacks,
pictures of the U.S.S. Cole and the World Trade Center, and anti-
semitic and anti-American material.
xx* * * * *xx
In 2001, the Israeli Defense Ministry recovered Palestinian
authority records detailing Saudi financing of terrorism. These
records show that a charity controlled by the Saudi foreign
minister transferred $55 million to the Palestinians. Of that,
$545,000 was distributed to 102 families of Palestinian martyrs,
including eight suicide bombers.
Shifting factional alliances may have impacted U.S. foreign
relations since then:
The Kingdom of Saudi Arabia is an important partner in this inter-
national effort and has taken significant steps to deter global
terrorism. There is more that can be done to further this relation-
ship; however, the steps that have been taken thus far are very
encouraging and promising. For example, cooperative counter-

terrorism efforts increased notably after the Riyadh bombings on
May 12, 2003, *x*x*.
Before the petroleum economies, people of the Middle East
were typically quite poor by modern standards. The relatively fast
economic ascent by oil riches does not equally advance civic
sophistication. In the United States we rightly temper religion
with free speech and the separation of church and state. Maybe
one day we will separate education and state. More mature
cultural values and social capacities are the result of successive
generations autonomously overcoming hurdles in their time to
deserve greater riches. We will culturally advance our concept of
human rights and responsibilities to an unprecedented level, or we
will revert to a condition within the bounds of 20th-century
socialism, 19th-century capitalism, and medieval religion. In the
end, our allegiance must be with ‘the Laws of Nature and Nature's
God.’ No theology ascribed. We generally know and feel that in
our patriotism, right?
Factions—and that is what nonrepresentative governments are
—within Islamic society that get rich by supplying the West with
oil are teetering between competing ideologies, as then are we.
Not surprisingly in hindsight a rich, devout Muslim might side
with his impoverished brothers. Ending U.S. dependence on
Middle Eastern oil is fundamental to waging the War on
Terror(ists). Don't fund them. Don't encourage them by taking
sides on internal disputes we cannot resolve.
The current U.S. energy infrastructure, a fragment of the global
economy, a fragment of the backbone of the global complex, is a
threat to our national security and prosperity, to our Western secu-
rity and prosperity, and to the pinnacle of human achievement
indispensable to the world as a paradigm and a platform. Staying
the course ripens the danger. The world has a few prominent
dictators who feed on high oil prices, but they don't feed alone.
Oil is a plentiful and uplifting resource kept scarce by a global
complex misrepresenting and vilifying oil to distract you from
your subjugation under the U.S. Inflation-Adjustment Board, the
G-Whiz Oil-for-Terrorism Programme, The Ethanol Trust, and the
U.N. Eco-Socialist Network. If you're keeping score at home, you
recognize the first two facetious references. Of the four concerns
the first is described in this book the most supra. The meaning of
the second should be obvious, even without recognition of G-7,
G-8, G-20, G-24, G-77, nor the former U.N.-Iraqi Oil-for-Food

Programme. The third and fourth references are logically related
and the fourth reference is described in this book the most infra.
That leaves suspect 3, The Ethanol Trust, to be interrogated
presently—but wait—it looks like U.S. Inflation-Adjustment
Board is ready to cop a plea.
To this point, the analysis indicates large oil company profits
may be due to high oil prices and tax breaks, but not refining and
subsequent distribution. Moribund deterioration of the U.S. dollar
means dollars are multiplying like rabbits. They need to live
somewhere and the collapse of one bubble means creation of a
larger bubble somewhere else until the music stops. Investors are
looking for a hedge against inflation of the dollar. Players are
looking for an easy mark. In 2008 there was a bubble or hedge in
both gold and oil, depending on how it plays out of course. Oil
companies are willing to store more oil and sell futures on it.
Investors who buy oil futures buy the right to purchase a certain
amount of oil at a certain price sometime in the future not beyond
an expiration date. The socioeconomic result of this capitalism is
that a portion of the oil supply is diverted from fuel production as
insurance against anticipated economic hardship. Fuel prices are
pushed up and Congress blames oil company greed or capitalistic
speculation rather than their own profligacy, their restrictions on
domestic oil production, and the fraudulent analyses of fixed-
market capitalists. The Organization of the Petroleum Exporting
Countries (OPEC) actually risked a low-priced oil glut by
increasing production under the circumstances, as evident in 2009.
OPEC accounted for at least 29 percent and at most 53 percent of
the world's annual oil production for the years 1970–2005, inclu-
sive, and 42 percent in the period's final year. A visit to the OPEC
website (www.opec.org) is requisite to an investigation of the oil
market. Turns out to be a useful resource for global activism
under the rubric climate change. A reduction in the consumption
of oil would be bad for OPEC, but a reduction in the production of
non-OPEC oil would be good for OPEC. Hmmm. Can you figure
it out?
A perpetual oil glut, that is perennially cheap oil, is exactly what
the security of the West requires right now, and there is no natural
reason why we don't have it. We have not reached peak oil
production, meaning the availability of oil in the earth does not
prohibit a greater rate of oil extraction. The maximal rate of
extraction has to do with the natural distribution of oil in the earth

mostly covered by water and the man-made access mechanisms
advanced by innovation. The fact that a finite quantity of oil is in
the earth is a moot point swallowed by feeble minds. We won't
know the oil is exhausted until we have exhaustively proven it.
Are the tree huggers afraid we have too much more? Have they
hugged an adult polar bear today? Peak Oil Theory assumes,
beyond its tautology, beyond its circular reasoning, that the earth's
supply is essentially held in one or more big geological oil tanks
that have long been fully accessible. What crap! Actual oil
production may decline because of governmental restrictions and
weak economic incentive as easily as natural depletion. Figure 5.3
shows world crude oil production, but note the values for years
2005–2007 are preliminary. We should be grateful for all the oil
there is to deplete. Instead of saving it, we should use it up and
fuel the prosperity that will make the future energy paradigm
possible.
Figure 5.3 World Crude Oil Production
80
Millions of Barrels Per Day
70
60
50
40
30
20
10
0
0
7
198
198
198
198
199
199
199
200
200
200
Years
Without the hysteria we can have a little intellectual stimulation.

The belief that oil is an incredibly limited fossil fuel made from
organic material that died long ago is not entirely correct, but it's
good for hedge funds. In 1943 methane was identified in the
atmosphere of the Saturian moon Titan. In 1980 Voyager I
confirmed Titan's atmosphere is mostly nitrogen gas and prompted
comparison of Titan to early Earth. In 1983 scientists showed that
the atmospheric methane could not persist without replenishment,

implying the existence of sizable bodies of liquid hydrocarbons
analogous to bodies of water on Earth. The Cassini-Huygens
Figure 5.4 World Energy Consumption by Source, 1973
Other Environmental Renewable Fuel
Capture 10.6%
0.1% Hydroelectric
Power
1.8%
Nuclear
Natural Gas Power
Petroleum 16.0% 0.9%
46.1%
Coal & Peat

24.5%
Figure 5.5 World Energy Consumption by Source, 2006

Capture 10.1%
0.6% Hydroelectric
Power
2.2%
Nuclear
Petroleum Power
34.4% 6.2%
Natural Gas
20.5%
Coal & Peat

26.0%
research vehicle was launched 15 October 1997 from Cape

Canaveral and entered Saturn orbit 1 July 2004. Discovery
supporting the abiotic but not biotic origin of oil was forthcoming.
During the flight of Cassini-Huygens the idea of abiotic oil was
published in The Deep Hot Biosphere (c1999) by Thomas Gold. A

watershed in Western thinking is poetically suggested by Matthew
R. Simmons, Twilight in the Desert (c2005) vs. Jerome R. Corsi
and Craig R. Smith, Black Gold Stranglehold (c2005). The
Huygens probe fell through the Titan sky on 14 January 2005 and
detected methane gas lacking the enrichment of carbon-12 associ-
ated with an organic source. Abiotic. The probe did not find an
ocean or even a lake of hydrocarbons, bolstering the subcrustal
ocean hypothesis. An analysis of data from the Huygens probe
published on 27 July 2006 determined that Titan's weather features
a slight, constant drizzle of methane. The methane rain could
resemble water rain in clearness and viscosity, though at a much
colder temperature. More complex molecules called aerosols give
Titan its orange haze and precipitate to form rain or sleet with
intrinsic color. Chemical processes in the atmosphere consume
nitrogen and methane to produce the aerosols, including heavier
hydrocarbons edging chemically from natural gas toward
petroleum oil. Scientists reported January 2008 that radar scans
from the Cassini orbiter found an abundance of hydrocarbon lakes
and dunes. The following March came the news that analysis of
the same scans identified relative displacements in Titan's crust of
up to 19 miles, a thing difficult to explain without an internal
ocean. Advancing technology makes additional oil recovery
possible here on Earth. Non-OPEC nations have generally main-
tained a constant amount of proven reserves, adding only to offset
depletion. OPEC nations have been diligently increasing proven
reserves of the easily accessible type, estimated to have been 902
billion barrels in 2005 or enough to supply the world's oil
consumption for that year 29 times over.
Ethanol from food is not a viable replacement for gasoline for
many reasons. The first one is that it's frigging food! Most other
reasons are general to ethanol made from plants. It's frigging
plants. The world's consumption of marketed energy is growing,
at least on average, between 2 and 3 percent annually. A decade of
growth at 2 percent annually would be nearly a 22 percent gain.
With demand plants become crops. Crops are land intensive,
promote deforestation, risk desertification, encourage the applica-
tion of chemicals to the environment, and risk dramatic crop fail-
ure. Earth-based solar power, and wind power for that matter, are
not now and may never be potent enough for more than niche
applications. There is a risk in counting chickens that are
unhatched. Plucking unconcentrated energy from our living space

is environmentally friendly except for the reduction of living space
and perhaps, should it somehow become a major energy source,
the large scale diversion of ecological energy. I'm going to found
an exchange of ecological energy diversion credits. Angels
wanted. Anyway, plants make lousy solar panels. Ethanol from
plants is a fuel, it burns, it pollutes albeit a different formulation,
and it produces CO2 gas. If petroleum fuel causes global warming,
then so does ethanol fuel and your exhalation, you evil food
burner, you.
The food or plant source of ethanol is distinguishing to ethanol's
merit. Ethanol production in Brazil uses sugarcane and produces
about 8 times more fuel energy than it consumes (neglecting the
photosynthesis, of course). In concise terms Brazilian sugarcane
ethanol has an energy ratio of about 8. The Brazilian ethanol is
said to have a positive energy balance or net energy value as well
because the energy ratio is greater than 1. From my survey of
Internet sources in early April of 2008, estimates of the energy
balance of U.S. corn ethanol, all admittedly dated, range from
marginally positive with an energy ratio of 1.67 to a marginally
negative but nonetheless counterproductive value of -1.29.
Presumably, especially with financial support of the U.S. Govern-
ment, the energy balance of U.S. corn-based ethanol is improving
over time. The U.S. Department of Agriculture (USDA) in July
2002 reported an energy ratio of U.S. corn ethanol of 1.34 and
then in 2004 the aforesaid 1.67. The 2002 report had this to say:
“In other words, abundant domestic feedstocks such as coal and
natural gas can effectively be used to convert corn into a premium
liquid fuel that replaces imported petroleum.” It's as if govern-
ment officials are discounting the prosperity of free trade and capi-
talism for the advancement of socialism. How much imported
petroleum could be displaced somewhere in the world by free-
market allocation of the same coal, natural gas, and corn in
comparison to making corn ethanol to replace petroleum imports
to the United States? The free market says, “more,” while the U.S.
Government subsidizes an overall reduction in national and global
prosperity. If the political motive were the replacement of foreign
petroleum, there would not be a protective U.S. tariff on ethanol
from Brazil and every other foreign country. Circa 2007 a 2.5-
percent tariff and an additional 54-cent-per-gallon duty on
imported ethanol and a 51-cent-per-gallon excise tax credit on any
ethanol used to make fuel were in place to sprout a salvational

domestic ethanol industry. That's the cover story. To be shown
shortly, corn ethanol can only help American corn farmers and
ethanol producers at the expense of American drivers. Besides
sugarcane and corn, ethanol around the world is made with
cassava, molasses, palm oil, soybeans, straw, sugar beets, sweet
sorghum, and wheat. Affordable cellulosic ethanol is the hopeful
future of ethanol. Cellulose is the world's most widely available
biological material. Ethanol is a biofuel substitute for gasoline
having two-thirds gasoline's potency by volume, and biodiesel is a
biofuel substitute for diesel having 92 percent the bang by volume.
Biodiesel is made around the world with animal fat, castor seed,
jatropha, rapeseed, soybeans, sunflower, and used vegetable oil.
Research published by the CATO Institute in late 2007 found
that with the 1.34 energy ratio determined and published by the
USDA in 2002, the net energy gain of creating corn ethanol from
all corn grown in the United States represents a replacement of
roughly 3.5 percent of the gasoline consumed in the United States.
Most of the produced ethanol is not energy profit because the farm
tractors, trailer trucks, and trains run on diesel, and the ethanol
plants must operate on something. Modifying the calculation for
the revised energy ratio of 1.67 results in ethanol enough to
displace 5.6 percent of gasoline consumption.
The Energy Policy Act of 1992 was signed by President George
H. W. Bush on 24 October 1992, and for the first time the U.S.
Government set target goals on ethanol consumption: 10 percent
by 2000 and 30 percent by 2010. The Secretary of Energy was
charged responsibility for the new program. With the date of the
first target goal approaching and the concession of failure
conveyed to Congress from the Department of Energy (DOE) by
report, Congress asked GAO to identify impediments, etc. Per a
GAO report dated February 2000, the mandates of the 1992 act
were too weak to outstrip the economic disadvantages. For
example, the mandate that government fleets have alternative fuel
vehicles does not preclude the flex-fuel vehicles so acquired from
burning straight gasoline. I wonder if flex-fuel modifications
reduce the efficiency of burning straight gasoline as well. GAO
and DOE agreed that under current economic conditions the target
goal of 30 percent in 2010 would not be met. GAO concluded
only two economic phenomena could effectively spur the desired
use of biofuel in the American transportation sector: (1) dramatic
and sustained increase in the price of gasoline and (2) very large
government incentives to reduce the cost of acquiring alternative
fuel vehicles, and no doubt of running them with alternative fuels.
On 8 August 2005 President Bush signed the familiar Energy
Policy Act of 2005. In this little act Congress firmly asserted,
“Approximately two-thirds of the original oil in place in the
United States remains unproduced.” A differently composed
Congress had asserted earlier, in the National Energy Conservation
Policy Act, enacted 9 November 1978, “the Nation's nonrenewable
energy resources are being rapidly depleted.” The energy act of
2005 also contained the Set America Free Act of 2005 or SAFE
Act. The purpose of the nested act was to ‘establish a United
States commission to make recommendations for a coordinated
and comprehensive North American energy policy that will
achieve energy self-sufficiency by 2025 within the three
contiguous North American nation area of Canada, Mexico, and
the United States.’ Anyhow, the larger law initiated a Renewable
Fuel Program that mandates the blending of ethanol into your
‘gasoline’. The mandate is often styled the Renewable Fuels Stan-
dard (RFS). New cars and light trucks sold in the United States
have been able to run on gasoline-ethanol blends not exceeding 10
percent ethanol by volume since the late 1970s. The 2005 act
went further and created what is essentially a domestic U.S. carbon
credits market. Any ‘person that refines, blends, or imports gaso-
line’ containing a quantity of renewable fuel greater than the
required ‘quantity’ (the requirement is by percentage, never per
gallon) has generated ‘credits’ and may transfer those credits ‘to
another person.’ Where that leaves the persons and businesses that
employ the credit-generating persons who may use or transfer their
own credits is nowheresville as I read the law—should the work-
ingman care to redeem his rights, tee-he—but I'm no accredited
jurist. Members of Congress again asked GAO circa 2007 to iden-
tify impediments to their ethanol aspirations. GAO found the
acceptance of ethanol to be floundering. May I suggest physical
reality? The ethanol content of motor fuel consumed in the United
States by volume was 1.3 percent in 2000 and 4.8 percent in 2007.
President Jimmy Carter signed into law on 9 November 1978
the Energy Tax Act of 1978. As a result the U.S. Government
subsidy of domestic ethanol production began with the year 1979
as an exemption from the federal excise tax on motor fuel for
gasoline-ethanol motor fuel having at least 10 percent ethanol.
Whether by weight or volume or mole fraction was not specified

by the Congressional physicists. The Crude Oil Windfall Profit
Tax Act of 1980 was signed by President Carter on 2 April 1980.
Figure 5.6 U.S. Energy Consumption by Source, 1978
Capture 2.5%
0.1% Hydroelectric
Power
Unknown 3.7%
(Net Electricity
Imports) Nuclear
0.1% Power
Petroleum Natural Gas
3.8%
47.4% 25.0%
Coal
17.4%
Figure 5.7 U.S. Energy Consumption by Source, 2006

Capture 3.4%
0.7% Hydroelectric
Power
Unknown 2.9%
(Net Electricity
Imports) Nuclear
0.1% Petroleum Power
40.0% Natural Gas 8.2%
22.2%
Coal
22.5%
The law created two income tax credits for ethanol fuel. The U.S.
General Accounting Office (GAO) issued via a report dated 25
September 2000 two cost estimates of the two subsidy programs.
The estimates were derived by adjusting into year 2000 dollars for
inflation separate sets of yearly estimates from the staff of

Congress' Joint Committee on Taxation (JCT) and from the Trea-
sury Department. The JCT-based cost estimate of exemptions
from the excise tax for the years 1982–2000 was $7.5 billion; the
Treasury-based estimate for the years 1980–2000 was $11.2
billion. Again, these estimates are in terms of year 2000 dollars.
The JCT-based cost estimate of tax credits for the years 1980–
2000 was $478 million; the Treasury-based estimate for the years
1981–2000 was $198 million. The GAO report cautions us that
the inflation-adjusted estimates should not be summed because
each estimate was made without considering how changes of one
subsidy program might effect the other. Still, we can't let a
government morass of imprecision preclude our authoritative vigi-
lance. We would be remiss to not ponder the possibility that U.S.
taxpayers have been screwed for $8.0–$11.3 billion in venerable
year 2000 dollars. I'm a wild man. A group interested in quanti-
fying the governmental subsidization of biofuel around the world
is the Global Subsidies Initiative (GSI). For what it's worth about
the availability of credible information, the GAO in a report dated
June 2007 referred to a GSI estimate quantifying the total U.S.
subsidy of ethanol motor fuel from government at all levels as
$1.80 for every displaced gallon of gasoline. A GSI report seems
to have used data from the aforementioned GAO report dated 25
September 2000 on ethanol subsidies, whether the inflation-
adjusted final tallies or the unadjusted yearly values, to estimate
the subsidy cost of exemption from the motor fuel excise tax over
the years 1980–2000 at between $8.6 and $12.9 billions using year
2006 dollars. As specified by the AJCA of 2004, the Volumetric
Ethanol Excise Tax Credit (VEETC) replaced the motor fuel
exemption on the arrival of 2005. Those physicists on the Hill are
really something. The GAO reported that the Treasury Depart-
ment estimated that in 2006 the VEETC, the largest federal biofuel
tax expenditure, cost the Federal Government roughly $2.7 billion
in revenue.
That piecemeal parade of estimates underscores a general rule
of financial obscuration. In 2008 as I write this part, the govern-
ment methods of biofuel subsidy in the United States are ill-
defined with methods of tariff, tax credit, and consumption
mandate. Despite the subterfuge, indications are that of the OECD
nations or member nations of the Organization for Economic Co-
operation and Development, roughly meaning of Western or West-
ernized nations embracing democracy and capitalism ever more

watered down, the United States is far and away the greatest
governmental sponsor of a domestic biofuel industry in terms of
economic redistribution. According to an estimate by the GSI,
U.S. support of biofuel from all levels of government was around
$6.5 billion in 2006, the year the United States surpassed Brazil to
become the world's leading producer of ethanol. Comparative
estimates from GSI were $4.2 billion for the European Union,
$110 million for Canada, $50 million for Australia, and $10
million for Switzerland.
World Food Programme (WFP) of the United Nations (UN)
reported in February 2008 that for the year's operations it had iden-
tified 73 million people who require food assistance of 4.7 million
metric tons at a cost of $3.8 billion. Their funding was short only
$2.4 billion. The U.S. Government spends several billion U.S.
dollars subsidizing U.S. corn farming and several billion U.S.
dollars more subsidizing U.S. ethanol production. The United
States is the world's greatest exporter of corn, and the WFP would
like some contributions to buy it. We are told the WFP is
completely funded by voluntary contributions like those received
from 97 governments in 2006. As contributor of half the world's
total food aid, the U.S. Government donated $1.1 billion of in-kind
food aid or 41 percent of total contributions to WFP in 2006. The
WFP further reported in February 2008:
Food prices have been increasing since 2001 as a result of rising
demand, including from oil-exporting countries and rapidly
growing economies in Asia, the growing importance of biofuels,
weather-related supply shocks and higher energy and fertilizer
costs. Yet, these factors do not fully explain recent trends, and
increasing investments in commodities by financial investors
might play a role as well. The most recent increase comes after a
prolonged decline in the prices of many agricultural commodities,
reaching historic lows in the late 1990s. Commodity prices have
always been volatile, but some fear that there might be a paradigm
shift and that prices are expected to remain high for some time.
Since 2001? Economic growth raising the (real?) cost of food,
energy, and fertilizer? A graph of the world's annual ethanol
production explains the mysterious paradigm shift this UN organi-
zation is apparently reticent to identify.16 Another UN entity called
16 Ronald Steenblik, Biofuels — At What Cost?: Government support for
ethanol and biodiesel in selected OECD countries, GSI, September 2007, p.
10, figure 2.1 is such a graph, perhaps still available from the Web at
the Food and Agriculture Organization (FAO) was clear and

candid at the start of its report Food Outlook dated June 2007:
Based on FAO's latest analysis, global expenditures on imported
foodstuffs look set to surpass US$400 billion in 2007, almost 5
percent above the record of the previous year. The bulk of the
increase can be leveled against rising prices of imported coarse
grains and vegetable oils, the commodity groups which feature
most heavily in biofuel production.
Another new factor of food pricing is the rapid expansion of
commodity exchanges and derivative markets dealing with agri-
cultural products. The trend is part of a larger expansion of capi-
talism and free trade in emerging nations. Investor speculation is a
natural market force, and food's alternative role as fuel can only
add to food's market volatility.
Real food prices throughout the world generally fell in the two
and a half decades ending with year 1999, remained steady and
historically low through 2005, but rose sharply thereafter to deco-
rate year 2008 with foreboding. A taxi drivers' strike over high
fuel prices in the port city Douala, Cameroon became riotous on
24 or 25 February 2008. In four days the violent protest had
spread to the capital Yaoundé. At issue besides high fuel prices
were high food prices and the possibility of Paul Biya extending
his 25-year ‘presidency’. The Government put the death toll at 24,
but human rights activists say it was over 100. The unrest was
Cameroon's worst in 15 years. In Egypt where President Hosni
Mubarek checks the political power of the Muslim Brotherhood,
subsidized bread called ‘baladi’ was selling for less than 1 U.S.
cent per loaf in early 2008, and a buyer in most Cairo bakeries was
subjected to a 20-loaf maximum. Parents sometimes kept their
children from school to wait alone in a baladi line, while corrup-
tion supported a booming black market of subsidized wheat and
bread. In early February 2008 began a trend of people dying in
baladi queues from exhaustion or knife wounds. The escalation of
bread violence and crime prompted President Mubarek in late
March to order the Egyptian Army to increase bread production.
Riots over high bread prices on April 6th and 7th led to the death
of a 15-year-old boy whose body was kept at a hospital to avoid a
violent funeral demonstration. The two-day riots were Egypt's
worst since the bread riots of 1977. A protest in Les Cayes, Haiti
over the high food prices and poverty in general turned violent 3
www.globalsubsidies.org.
April 2008. Protesters burned shops, threw stones, shot at UN

peacekeepers, and looted the UN compound despite warning shots
of peacekeepers. By the next day four were dead. Spreading
unrest reached Haiti's capital Port-au-Prince on the 7th and 8th. It
seems thousands protested, certainly enough to close businesses
and schools. The unrest marked by violence and widespread
looting ended on April 11 with at least six dead overall. This
global pattern of food-related violence in poor nations emerged
around November 2008 and within six months had visited not only
Cameroon, Egypt, and Haiti, but Bangladesh, China (by shopping
stampede), Côte d'Ivoire, Mauritania, and Yemen. Large U.S.
retailers first rationed rice on 23 April 2008. By that time, UN and
government officials had blamed global inflation as if the world
had only one currency (apparent inflation) or a contraction in total
wealth (real inflation). They had blamed climate change. Offi-
cials with the WPF had managed to lay part of the blame to biofuel
production.
Now consider the supply-side consequences of massive biofuel
production. The high price of corn and soy promotes destruction
of the Amazon rainforest by cattlemen, soy farmers, and corn
farmers. Expensive cattle feed makes rainforest beef more prof-
itable. The high price of palm oil used for biodiesel promotes the
destruction of tropical peat lands of Indonesia. Demand for
biofuel crops threatens rainforests on three continents.
Western government subsidies and mandates for biofuel are
economically, environmentally, politically, and socially corrupt. If
the U.S. Government simply mandated flexible-fuel vehicles and
let the market decide how to plant and use crops, the downside risk
would be minimal and the results, whatever they would be if not
otherwise perverted, would accurately reflect the viability of
ethanol: not very! Brazil has already demonstrated oil indepen-
dence is possible by increasing sugar cane and crude oil produc-
tion. Heavy on the crude oil. The facts are plain in figure 5.8, but
note (1) the data as recent as 2005 is preliminary, (2) the three oil
fuel types are equated by volume not energy content, and (3) the
net oil export values graphed are approximate, on the high side,
because petroleum consumption is the only oil consumption
subtracted from the overall oil production in its divers forms.
Petroleum consumption is crude oil and natural gas plant liquid
consumption but not biofuel consumption. As researched in May

2008, Brazil was anticipated to have become a net oil exporter by
the end of 2007.
Figure 5.8 Brazilian Oil Factors
1,750
Thousands of Barrels Per Day
l
1,500
e Oi
1,250 ud
Cr
1,000
750
500
Ethanol
250
0
Natural Gas Plant Liquids rts
-250 xpo
-500 il E
-750 etO
N
-1,000
0
7
198
198
198
198
199
199
199
200
200
200
Years
Are we still the world leader or aren't we? The next energy
infrastructure has yet to be defined. Any definition issued by a
central planning authority will predictably fail. Government has
done better to plan the framework that yields a group decision by
forcing people to individually put their money where their mouths
are. Unproven energies must crawl before they can carry the U.S.
economy. Calling additional energy alternative energy is counting
your chickens before they hatch, and asinine. The current under-
pinning of Western society, Westernizing societies, and the greatest
prosperity ever known is being eroded. Our mandate should be to
drill heavily for oil, promote corporate competition not consolida-
tion, foster care without sanctimoniously led hysteria for our envi-
ronment, and rescue Western capitalism and culture before it's too
late.
5.5 Litigation 193
5.5 Litigation
With conservatively estimated annual direct costs of $180 billion,

or 1.8 percent of GDP, the United States tort system is the most
expensive in the world, more than double the average cost of
other industrialized nations. Whereas an efficient tort system has
a potentially important role to play in ensuring that firms have
proper incentives to produce safe products, poorly designed
policies can mistakenly impose excessive costs on society through
forgone production of public and private goods and services. To
the extent that tort claims are economically excessive, they act
like a tax on individuals and firms. *x*x* the cost of excessive
tort may be quite substantial, with intermediate estimates
equivalent to a 2 percent tax on consumption, a 3 percent tax on
wages, or a 5 percent tax on capital income. As with any tax, the
economic burden of the “tort tax” is ultimately borne by
individuals through higher prices, reduced wages, or decreased
investment returns.
*x*x* This cost has grown steadily over time, up from only 1.3
percent of GDP in 1970, and only 0.6 percent in 1950. *x*x*.
The cost is especially troubling because only 20 percent of these
dollars actually go to claimants for economic damages, such as
lost wages or medical expenses.
—Council of Economic Advisers
The above Council of Economic Advisers (CEA) excerpt was

current in 2002. U.S. figures are from 2000 data except that inter-
national comparisons are from 1998. In addition to 20 cents on the
dollar going to the claimant for economic damages, another 22
cents went to the claimant for non-economic damages like ‘pain
and suffering’. Thus, functional overhead in 2000 was 58 percent
or even more if any non-economic damages are considered waste-
ful. The CEA argued overhead beyond 23 percent was excessive.
Consequently, the tort system had rather abysmal efficiency.
Much of the Council's statistics came from Tillinghast-Towers
Perrin. Later Tillinghast data found the United States in 2002 had
liability insurance costs comprising 71 percent of the total tort
costs and operating with a functional overhead of 54 percent. In
the period 2000–2003 the United States led other examined coun-
tries in tort costs as a percentage of GDP, but based on limited
data. The international analysis of 2000–2003 data covered 11
countries including the United States, whereas the 1998 data was
for 12 countries of which 10 were the same. The United States

had tort costs in 2004 totaling $260.3 billion overall and $887 per
capita. In 2006 it was $247.0 billion and $825 per capita.
The ‘tort tax’ studies of the actuarial consulting firm have been
criticized for overstating costs and relying on internal, unverifiable
computations. A correlation between higher tort costs and nega-
tive macroeconomic consequences is hardly proven. The infer-
ence is that special interests and the Bush administration have been
disingenuously concerned about the U.S. economy as a whole.
The White House in 2005 warned of an ‘explosion in litigation,’ a
‘logjam in America's civil courts,’ and an average litigation
expense to small businesses of about $150,000 annually. A 2003
study by the U.S. Department of Health and Human Services
found excesses of the litigation system encourage ‘defensive
medicine’—treatment to avoid litigation. The fundamental consid-
eration about managing litigation within our legal system is not
mediating the interests of insurers, healthcare providers, and
lawyers; it's about managing our legal system in the context of our
social system and our interests of political liberty. Real and imag-
ined aspects of the insurance and medical systems should not be
confused with aspects of the legal system. Nor should the
economics of all legal expenditures be confused with that of litiga-
tion. Statistics of the latter are hard to come by. What can be said
is that attorneys not infrequently charge litigants contingency fees
as high as 40 percent of recovery and sometimes more. Statistics
about the take of the courts and lawyers are not available as far as I
know. Judicial take-of-the-house statistics should be freely
published, but we have yet to demand it. The flow of judicatory
information has been facilitated by a Web-accessible system called
PACER as used with court websites. The Pacer system requires a
login id and password, and it is not free beyond very limited use.
It's a start. Basic to an objective assessment of litigation, besides
direct analysis, is an assessment of context which is given by the
overarching systems legal, economic, and social. It just so
happens statistics are available about the employment of lawyers
and judges. More statistics are available about the employment
and production of the legal services segment of the U.S. economy
from the Bureau of Economic Analysis (BEA) of the U.S. Depart-
ment of Commerce and from the Bureau of Labor Statistics (BLS)
of the U.S. Department of Labor. The BEA statistics used here
define legal services according to the 1997 version of the North
5.5 Litigation 195
American Industry Classification System (NAICS). The BLS

statistics used here follow the 2002 NAICS. Let's first consider
employment.
Table 5.5 Comparative U.S. Employment by Occupation
Occupation Jobs Jobs per
1000 People
2004 2006 2004 2006
Teacher (PreSchool thru
High School) 3,800,000 3,945,000 12.9 13.2
Cashier 3,500,000 3,527,000 11.9 11.8
Registered Nurse 2,400,000 2,505,000 8.2 8.4
Waiter, Waitress 2,252,000 2,361,000 7.7 7.9
Top Executive 2,300,000 2,123,000 7.8 7.1
Accountant, Auditor 1,200,000 1,274,000 4.1 4.2
Lawyer 735,000 761,000 2.5 2.5
Barber, Hairdresser,
Hairstylist, Cosmetologist 670,000 677,000 2.3 2.3
Pipelayer, Plumber,
Pipefitter, Steamfitter 561,000 569,000 1.9 1.9
Computer Programmer 455,000 435,000 1.5 1.5
Writer, Editor 320,000 306,000 1.1 1.0
Paralegal, Legal Assistant 224,000 238,000 0.8 0.8
Dentist 150,000 161,000 0.5 0.5
Table 5.5 above shows the comparative pervasiveness of several
professions in the mid 2000s. Evidently, we patronize lawyers
more than writers, more than programmers, and more than people
we pay to cut our hair. We support one lawyer for every three
waiters. Figure 5.9 located infra shows various employments per
1,000 capita over the years, but the left side of the scale is
compressed. The years plotted are years ending in zero over the
period 1900–1970 followed by each year from 1972 to 2007. The
first three plotted lines starting from the bottom represent the
counts of judges, lawyers, and judges and lawyers combined. The
gray line at the top represents legal services jobs as determined by
BLS for years 1972–2006. The top black line represents legal
services workers, whether full- or part-time, as determined by
BEA for the years 1977–2006. The BLS jobs per 1,000 capita
peak at 4.7 in year 1991 and reach the same in the years 2003–
2006. The BEA workers per 1,000 capita peak at 5.0 in the years
1989–1990 and at 4.8 in the years 1999–2000. The number of
judges and lawyers per 1,000 capita rise to 3.5 in 1995 and then
trend flatly not surpassing the 3.5 value until hitting 3.6 in 2007.
The discrepancy in figure 5.9 with the value of 2.5 from table 5.5
for the years 2004 and 2006 may have something to do with the
different release dates of the job counts. Certainly, the population
value used for the year 2004 calculations of table 5.5 was current
in 2006 to match the currency of the job counts from the online
Occupational Outlook Handbook (OOH), 2006–07 edition posted
also in 2006 whereas the population values chosen for the compu-
tation of figure 5.9 were contemporary in 2008 with that employ-
ment data. The plausibility of an uncontemporaneous effect is
eliminated by the OOH data for year 2006, contemporary in 2008.
BLS only publishes the current OOH on the BLS website. Neither
historical OOH data in original nor updated form is posted there.
The most compelling explanation for the discrepancy in lawyers
per 1,000 capita is the difference between the methodology used to
develop BLS statistics for the OOH and the methodology used to
derive the BLS yearly counts of employed judges and employed
lawyers. In particular, the results of the Occupational Employment
Statistics (OES) Survey are the main computational input for the
OOH data whereas the results of the Current Employment Survey
are the sole input to generate the yearly counts of employed judges
and employed lawyers. The OES employment figures tend to be
lower because they do not consider ‘the self-employed, owners
and partners in unincorporated firms, household workers, or
unpaid family workers.’ OES statistics are designed not for
compatibility over time but for compatibility over job types at one
instance. It's worth noting at this point that today's competition for
lawyer jobs, in the late 2000s, are intense because of the high
number of graduates. Steady or lower demand for legal services as
suggested infra by figures 5.9 and 5.11, the latter to be explained
shortly, can only be the other side of that economic equation. Now
that I think of it, per capita statistics for legal services production
would have been apropos.
5.5 Litigation 197
Figure 5.9 Prevalence of U.S. Legal Services Employment

Workers/Jobs Per 1,000 of Population
5.5
BEA Workers
5.0
4.5
BLS Jobs
4.0
Lawyers & Judges
3.5
3.0
Lawyers
2.5
2.0
1.5
1.0
0.5 Judges
0.0
0
4
190
194
197
197
198
198
198
199
199
200
200
Years
Some economic terminology is needed. The BEA, to be

commended on this, provides the following definitions:
Gross output. Consists of sales, or receipts, and other oper-
ating income, plus commodity taxes and changes in invento-
ries.
Gross domestic product (GDP). The market value of goods
and services produced by labor and property in the United
States, regardless of nationality; GDP replaced gross national
product (GNP) as the primary measure of U.S. production in
1991.
Gross national product (GNP). The market value of goods
and services produced by labor and property supplied by U.S.
residents, regardless of where they are located. It was used
as the primary measure of U.S. production prior to 1991,
when it was replaced by gross domestic product (GDP).
Value added. The gross output of an industry or a sector less
its intermediate inputs; the contribution of an industry or
sector to gross domestic product (GDP). Value added by
industry can also be measured as the sum of compensation of
employees, taxes on production and imports less subsidies,
and gross operating surplus.
Intermediate inputs. Goods and services that are used in
the production process of other goods and services and are
not sold in final-demand markets.
Figure 5.10 U.S. Legal Services Real Production

225
Billions of Year 2000 Dollars
BEA Gross Output

200
BLS Domestic Output
175
150
125
BEA Value Added
100
75
50
25
0
2
5
197
197
197
198
198
198
199
199
199
199
200
200
Years
Figure 5.11 Legal Services Percentage of Real U.S. Production

2.00%
BEA Value Added
1.75%
1.50% BLS Domestic Output
Percentage
1.25%
1.00% BEA Gross Output
0.75%
0.50%
0.25%
0.00%
2
5
197
197
197
198
198
198
199
199
199
199
200
200
Years
Gross output of an economy does not exclude overhead costs,

paid out of the gross output. The GDP (of an economy) is what's
left over after the overhead costs (to the economy) are paid
because market value is the cost of production plus profit (to the
economy). GDP represents the profit or benefit of an economy's
production activity. The gross output of an industry is the output
of production processes culminating in that industry from their
5.5 Litigation 199
very beginnings in whatever industry to the sales made from inside

to outside that industry. Value added is the gross output of an
industry minus its overhead which includes its purchases from
other industries. Value added is to an industry what GDP is to an
economy. BEA's term gross output as applied to an industry is
analogous to BLS's term domestic industry output. Let's abbre-
viate gross output including domestic industry output as GO and
abbreviate gross (domestic) output necessarily of the whole
economy as GDO.
Now I hope you asked yourself why the BEA would change
from GNP to GDP beginning with the year 1991. Deficit spending
cannibalizes the American economy that we own—that Americans
own. By force feeding our economy on unearned purchasing
power, imports are consumed beyond healthy limits, and those
trade-deficit dollars don't get mopped back up by our exports. Our
country is being dismantled as explained at the end of subchapter
5.1, “Federal Deficit Spending,” but it's also being sold. Yes, by
having a trade deficit we have an investment surplus, but it ain't
because America's business itself is good. Consider the sales of
Toyotas made in America separately from the wages of American
workers in the plants. If those cars are purchased by Americans,
GDP credits the sales to the American economy as if the cash flow
were routed to purely American disposal whereas GNP does not.
If those same cars are exported, GDP equally credits the American
economy for the sale. Domestically based foreign profits on
American consumption and exported consumption are erroneously
attributed to ‘American’ prowess.
As unofficially measured by the BLS, the GO of legal services
has risen 13 percent in the 15 years ending 2004, an annual
average of 0.8 percent compared to 2.0 percent for the associated
GDO. Stopping with the year 2004 has the advantage of using
revised if not final numbers. As measured by the BEA, GO
produced by legal services has risen about 21 percent in the 15
years ending 2004, an annual average of 1.3 percent compared to
2.1 percent for the associated GDO. The GDP data from BEA
works out to 0.4 percent annually for legal services and 2.0 percent
for the grand total. That suggests any excesses in the legal system
are isolated and contained. The intense competition among
lawyers and law students hints that other avenues of personal
betterment for the ambitious—pursuits more entrepreneurial and
directly engaged in wealth production—may be underutilized. By
rearranging the analysis of the BEA data for the 15-year period we
see that total output and total production have increased on an
average yearly basis 2.1 percent and 2.0 percent, respectively,
while legal services output and production have increased on
average 1.3 percent and 0.4 percent, respectively. Legal services
output has grown three times faster than legal services production
or value added.
The 16 December 2000 issue of the Economist reported the
number of lawyers per 100,000 people to be 281 in the United
States, 94 in England, 33 in France, and 7 in Japan. The data
shown supra in figure 5.9 corresponds to 330 lawyers per 100,000
people in 1999 and 311 in 2000 if judges are excluded, and to 345
and 335 respectively if not. The data in nearby table 5.5 corre-
sponds to 250 lawyers for every 100,000 people in the American
population in the years 2004 and 2006. That's lower than the 346
or 324 in 2004, and the 344 or 322 in 2006, respectively and
respectively per the data of figure 5.9. Perhaps the count of lawyer
jobs from the Occupational Outlook Handbook, 2000–01 edition
was used to calculate the 281 figure published by the Economist.
Anecdotal evidence manifests the disturbing human cost of
societal shortcomings with legal standing. The occasional teacher
tells me that students of poor school districts don't do homework in
the majority, play with cell phones in class, and proposition teach-
ers. It seems there's not a darn thing a teacher can do about it. The
media flaunts the occasional, sensational classroom story indica-
tive of a discipline problem. I hate to break it to you, but some
children deserve to be left behind so that capable students and
teachers are not. Here's some food for thought: In France back in
2004 a cereal packaging claimed to contain real bits of tiger.
Thirty-six hundred miles across the Atlantic, not later than 2006,
the label of the Great Value brand of canned tuna carried an allergy
warning about tuna. So in France a fool bedazzled by the prospect
of real tiger bits soon parts with his money. In the United States
an ignorant consumer with an unfortunate tuna allergy might not
only be the hapless victim of society's expedient shopping faculty
but also a parasitic pawn gilded by a parasitic player in the
people's so-called court of justice rendered in the Theatre of the
Absurd. Which product labeling assumes the more able concep-
tion of culture and justice? In either country what traits of the
people are reinforced? After eating reputed tiger bits back in 2004,
I can thankfully report having no food allergy to tiger.
5.5 Litigation 201
Despite risks inherent in having a legal system, we are stuck

with them because the alternative is untenable and unthinkable. In
a civilized society, legal action is a proxy of combative action.
Lawyers replace warriors as the eminent resolvers of dispute.
Warriors manipulate violence; lawyers manipulate the threat of a
violence with institutional recourse. Be advised: If you don't take
your share of the law into your own hands, any good lawyer will
take it for you—or a good politician for that matter. Your share of
the law is called personal sovereignty. Citizens of democratic
societies like ours have it, that tiny but potent share of a nation's
entire sovereignty. Illegal aliens do not have it. You may wish to
take this book back for a full refund since it is so blatantly wrong
in a presumption fundamental to its thesis.
Lawyers are paid to impose or destroy the argumentative legiti-
macy of moving society from point A to point B. Points A and B
are not chosen by wisdom, love, or justice. Points A and B are for
hire. They are chosen by convenience. Here are some examples.
• Regarding why on 29 March 2006 Representative Cynthia
McKinney (D-Georgia, 4th) allegedly hit a police officer,
McKinney's attorney Mike Raffauf said she responded to
‘inappropriate touching’.
• Responding to a ruling 8 November 2004 by U.S. District
Judge James Robertson, Director of Public Affairs Mark
Corallo, though not a lawyer, issued a statement representing
the U.S. Justice Department that said:
By conferring protected legal status under the Geneva
Conventions on members of al Qaeda, the Judge has put
terrorism on the same legal footing as legitimate methods of
waging war.
• Whether or not you thought the public needed to be
concerned, let's not forget this classic grand jury testimony
given 17 August 1998:
When I was alone with Ms. Lewinsky on certain occasions
in early 1996 and once in early 1997, I engaged in conduct
that was wrong. These encounters did not consist of sexual
intercourse. They did not constitute sexual relations as I
understood that term to be defined at my January 17th, 1998
deposition. But they did involve inappropriate intimate
contact.
• In commentary about our human nature, a prominent
personal injury trial lawyer of years gone by explained:
The appearance of the plaintiff [is] number one in

attempting to evaluate a lawsuit because I think that a good
healthy-appearing type, one who would be likeable and one
that the jury is going to want to do something for, can make
your case worth double at least for what it would be other-
wise and a bad-appearing plaintiff could make the case
worth perhaps half *x*x*.
Lawyers don't make prosperity. They provide a service of
administrative overhead that may or may not help others make
prosperity. Overhead beyond true service is at best a waste of and
at worst an assault on human potential. Nondisclosure agreements
that hide the output and function of our legal system preclude
accountability, democracy, and justice. Such agreements should
be illegal.
At its heart opinion is a synthetic extension of one's axiomatic
philosophy. I hope we are introspective enough to choose the
determinate roots of our opinions carefully. This is mine: An
attorney cannot have two masters truth and money. If the legal
system is an essential public utility, why can its servants free-
lance? A trial lawyer is no less a mechanism of our ‘justice’
system than a judge. Ditto for expert witnesses and the assisting
lawyers and paralegals. Becoming rich should not even be
possible in such a critical capacity.
I do not suppose free-market forces are impotent with respect to
legal services as a whole. According to Government data, legal
services are far from a cancerous growth in the U.S. economy.
The concern I have with legal services is in the wielding of judica-
tory power by and for elitists. Litigation, like healthcare, is sold in
an inelastic market. Free-market forces will not arrive at an
optimal price. A price ceiling must be set manually, or the price
will be too high. Yes, if it were set too low, the little guy would
have no champion. That champions of jurisprudence are necessary
for a justice system makes only a bit more sense to me than that
champions of accounting are necessary for a taxation system. For
the former I muster nothing more than hope since justice requires
more of people rather than less, but that is an aside to the matter at
hand. There's no way in hell anyone should profit on the so-called
justice system of these United States more than the President is
financially compensated for so-called public service at the highest
echelon. In 2008 the President's salary, in accordance with 3
U.S.C. 102, was $400,000 per annum. I'm only getting warmed
up.
5.6 Taxation 203
5.6 Taxation
Mr. Speaker, I would like to place in today's record the following

article by Mr. Lee Jackson, a constituent of mine who is battling a
perverse tax law. Mr. Jackson and several other individuals were
the target of a frivolous lawsuit that rightfully was dismissed for
its lack of merit. Mr. Jackson and his fellow defendants—all
totally blameless—spent many thousands of dollars in legal fees
fighting the meritless suit. They understandably filed their own
lawsuit against both the original plaintiffs and the plaintiffs' law
firm. However, they cannot reach a monetary settlement for
damages because our tax code treats all proceeds from such a
settlement—even the portion Mr. Jackson owes to his attorneys—
as taxable income for Mr. Jackson. As a result, Mr. Jackson
literally cannot afford to settle his case because he will owe more
in income taxes than he receives from the settlement!
Furthermore, he cannot deduct his attorneys fees because of the
alternative minimum tax. Mr. Jackson's story *x*x* provides a
vivid example of why Congress must change the tax code to
ensure that attorney fees are deemed taxable income to the
attorneys who actually receive them, not their clients.
—Representative Ron Paul, R-Texas, 14th district
How can I compete against a tax-shelter investor who's in
business to lose money?
—Steve Lettow, Iowa grain farmer
The first epigraph above illustrates the application of ‘assignment

of income doctrine’ to attorney contingency fees. The result is a
double taxation, if you will, on the client and on the attorney for
settlement or award money satisfying the attorney's fee. The
quintessential example of double taxation on contingency fees is
the case of policewoman Cynthia Spina. After roughly three years
of her first assignment after training and the accompanying harass-
ment, she filed charges of employment discrimination with the
Equal Employment Opportunity Commission on 27 March 1997.
With the ensuing investigation Spina's tires were slashed, officers
failed to back her up on the street, and supervisors became inflex-
ible about sick days, lunch breaks, and the like. Because of the
investigation, some officers were suspended or fired. On 6 March
1998 Spina filed an employment discrimination lawsuit against her
employer, Forest Preserve District of Cook County, in Chicago,
and several coworkers. She was alleging sexual discrimination.
The District refused court orders to produce documents. On 21

November 2001 Magistrate Judge Arlander Keys sanctioned the
District for flagrant disregard of discovery. “The Court can only
conclude that there is no acceptable excuse for the District's deci-
sion to flaunt their recalcitrance to this Court.” On 12 December
2001 a jury awarded Cynthia Spina $3 million in compensatory
damages against the District. However, on 31 May 2002 Judge
Keys ruled the award was excessive and gave Plaintiff the option
to accept within 21 days ‘of this decision’ a $300,000 award in
compensatory damages or a new trial to determine damages only.
Spina's romantic involvement with another officer with whom she
became engaged suggests the possibility that certain comments
taken offensively may not have been sexual harassment, and the
suicide of her fiancé in 1999 undoubtedly caused Spina additional
and inseparable stress. Whether the peculiar timing was indicative
of intense perturbation from the contentious dispute is impossible
to determine from the timing alone, and even if it were so, it does
not prove sexual harassment.
Whatever one's perspective, more favorable circumstances in
the same court would have been hard to imagine. Legal expenses
tend to accrue, and the plaintiff anticipated they would exceed $1
million as it was. In late July 2002, Spina was awarded lawyers'
fees of $850,000 and costs of nearly $100,000. That August the
plaintiff still had her choice to make. By accepting the $300,000
award Cynthia Spina could expect to be taxed on $1.25 million
and owe the Internal Revenue Service $99,000 more than the value
of her award. Her legal expenses, that is attorney's fees and what-
ever ‘costs’, were ineligible as miscellaneous itemized expenses
under the provisions of the alternative minimum tax. Have a nice
day.17
Judge Keys recognized that Spina, subjected to alleged harass-
ment, was courageous and had more fortitude than other female
police officers who had felt similarly victimized. The decision
articulated by Keys suggested the principle that relative weakness
exposed to injustice deserves greater emotional damages than rela-
tive strength identically exposed and less affected. Perhaps if
Spina who fulfilled her dreams of becoming a police officer had
17 Iwas unable to find a definitive, credible source to treat with any precision
the federal taxation circa 2002 of legal expenses that are not attorney fees:
court costs?, attorney costs?, personal litigant costs like gas and parking?
How Spina and her attorney arranged to shoulder costs may or may not
have been germane to Spina's potential tax liability.
5.6 Taxation 205
desperately defined herself more by her work, she would have

deserved more compensatory damages. Emotional damage is not
equivalent to emotional hardship, of course. Officer Cynthia
Spina and her attorney effectively reached a settlement on 23
March 2003 covering all defendants potential or otherwise for all
incidents at issue in the case for the payment of court-approved
attorney's fees and expenses to her attorney amounting to $1.15
million and for the payment in compensatory damages of $375,000
to Spina herself, to have been paid in four equal installments
distributed individually across the tax years 2003–2006 with
interest as negotiated. We can surmise the harassed plaintiff
suffered a financial net loss of tens of thousands of dollars after
struggling with her coworkers and employer ten years to achieve
victory: the Establishment was preserved at a profit.
This whole mess was kicked off by Congress; who else? Presi-
dent Clinton signed into law on 20 August 1996 the Small Busi-
ness Job Protection Act of 1996. Section 1605 of that legislation
repealed the exclusion from federal income taxation of punitive
damages and damages not attributable to physical injury or sick-
ness. Gross damages were simply exposed to the alternative
minimum tax. Ponder for a moment the idea of gross income.
Gross income is a nonsensical tax target if taken literally. A
rational person could only presume an interpretation of cumulative
net income. The simplistic consideration eluded the judgment of
Congress into the 21st century. Back in 1861 ye old U.S. Senate
debated prior to enactment of the first internal revenue law. As the
timeworn Senate record aptly demonstrates, the very concept of
income, net or otherwise, is an intractable attribute of the economi-
cally vibrant. For workers fitted to an austere hireling mold the
pre-existent concept income works just fine. Over time subse-
quent to enactment of the 1996 act the courts diverged in their
treatment of lawyers' contingency fees with respect to the term
income, for the Internal Revenue Code does not limit taxable
income to that which is explicitly identified. The hierarchy of U.S.
federal courts as traversed by the appeal process from bottom to
top is: (1) trial or district courts, (2) courts of appeal or appellate
courts, and (3) the Supreme Court. Each appellate court with its
particular grouping of district courts is called a circuit. The Courts
of Appeals heading the 5th, 6th, and 11th Circuits determined the
contingent fee is to the plaintiff not gross income and so not a tax
liability. The Appellate Courts atop the 1st, 2nd, 3rd, 4th, 7th, 8th,
10th, and Federal Circuits determined the exact opposite. Spina's

case was tried in the Seventh Circuit. The Ninth Circuit held that
tax liability to the plaintiff depended on the jurisdictive ‘State’ law
(of Montana, California, seven other States, Guam, or the Northern
Mariana Islands).
Mark Everson, Commissioner of Internal Revenue from May
2003 to May 2007, adamantly contended in court for the policy of
double taxation as had his predecessor Charles O. Rossotti, in
office from November 1997 to November 2002. The Supreme
Court refused four petitions of certiorari (or review) in the span
2001–2002 from taxpayers that had been defeated by Commis-
sioner Rossotti in appellate courts. Commissioner Everson lost in
2003 by inheritance of pending litigation the Banaitis case in the
Appellate Court of the Ninth Circuit and the Banks case in the
Sixth Circuit. Everson's petitions of certiorari were granted for
consolidated consideration by the Supreme Court on 29 March
2004. Third parties to the case but interested in the jurisprudence
of the taxation of attorney's contingency fees were allowed to
address the Court with their own arguments in what are called
amicus briefs. The supreme decision reached 24 January 2005
was certain that the attorneys' contingent fees of Banks and
Banaitis were taxable and that attorneys' contingent fees are
taxable if the litigant's income is taxable, as a general rule. The
unanimous decision (8–0) suggested the tenuous possibility that if
an attorney-client contract or a litigants' settlement agreement
were to indicate related contingency fees are in lieu of statutory
fees directed by the court to be paid by one litigant to the attorneys
of another, then such attorneys' contingency fees might not be
taxable to the attorneys' clients. The veracity of that possibility
and others were left for the taxpayer to discover on the altar of due
process. In regard to the aforementioned fee-shifting statutes the
Court decided, “We need not address these claims.” The counsels
for Banks and Banaitis and other persons presented novel argu-
ments to exclude contingent fees from double taxation. The Court
responded, “We decline comment on these supplementary theo-
ries.” We may derive comfort from the principle that courts do not
legislate from the bench.
A new Congress and the next President eventually righted the
tax-code wrong loosed by the 1996 act, somewhat. President Bush
signed into law on 22 October 2004 the American Jobs Creation
Act of 2004 (AJCA). Section 703 of the AJCA provides, but not
5.6 Taxation 207
retroactively, for the deduction of lawyers' contingency fees and

court costs in litigation involving ‘unlawful discrimination’
defined with regard to a mind-numbing array of acts, codes, titles,
and sections. A superficial summary is that this tax relief applies
to civil rights in general and to employment discrimination and
whistleblower protection in particular. The tax relief may not help
employees turned litigants in cases of product liability, invasion of
privacy, some instances of defamation, not to mention grievances
clearly outside the scope of employment like false imprisonment.
The double taxation scheme smacks of an underhanded way to
reduce litigation at the expense of the little guy. The correct way
to address a problem is to actually address the problem spot on.
Addressing the almost problem only makes it bigger. Cowardice
like underhandedness prefers assault of the weak, noncritical
people on the front lines of a contrary social mechanism rather
than confrontation with the powerful people governing such a
system and at the heart of the injustice, if indeed injustice there is.
A democratic culture accepts the burden of hitting the mark. If
Congress wanted to reduce litigation, they could have gone after
the income of lawyers and without usurping something for them-
selves. If the police of Chicago, in that traditional sanctuary of
political corruption and cheap foreign labor, wanted to dispute the
merit of policewomen, they should have articulated a position in
the public forum of debate like vital men. If angry white labor
wanted to express their wrath over the flood of cheap Chinese
labor in California in the late 1800s, the constructive targets would
have been the charlatans of the U.S. Presidency and Congress, and
the capitalists who bought them. The more things change the more
they stay the same. The AJCA solution has extended the distended
complication of litigation and taxation. While the tax rules
regarding lawyers' contingency fees have been made certain in
more cases, the tax rules related to litigation in other circum-
stances can still only be rated by probability, and the IRS does not
provide clarification except to find fault after the fact. Two cases
in point: The Internal Revenue Service issued a notice of defi-
ciency to Mr. John Banks, Jr. regarding his 1990 tax return in 1997
and delivered a notice of deficiency to Mr. Sigitas Banaitis
regarding his 1995 tax return on 24 March 2000.
The inveterate income tax has a fundamental problem. What is
‘income’? At what point does romancing a date or supporting a
family member involve a taxable disbursal? Income is an intru-
sive, cumbersome tax target. Income is a vague concept that is

routinely perverted to benefit some special interest. United we
stand? Other tax schemes are equally ill conceived. State use tax
(extra-sales tax) presents a perversion of jurisdiction. If you buy a
refrigerator for your home outside your home's state, the onus is
on you to pay that State's use tax. This is service working in the
wrong direction. Furthermore, the State exempts itself from the
check of competition. This extra-regional taxation is severed from
the noble representation that makes this country great: free-market
representation. As if surcharge on a refrigerator wasn't enough,
property tax essentially takes a piece of your house. Do you own
the house outright or not? If you didn't pay the tax, you would
loose your house. Property tax completely undermines the prin-
ciple of ownership. If on the other hand you wanted to ensure
affluence in the neighborhood, then property taxes could do the
trick.
Prosperity is the raison d'etre of having government in the first
place. Why is an account of our finances owed to the government.
Instead, the government owes us an account of its finances. Our
flippant and dizzying array of tax mechanisms are passed off as
tax services. As the preceding demonstrates, a tax agency can
provide a disservice. The I-R-Service provides service to whom?
Fundamental tax problems are:
• the government is not paid on performance,
• the complexity hides the cost to our personal finances,
increases the shared cost of collection mechanisms, and
obstructs civic reform,
• the extravagance embodied within the private tax accounting
industry is also overhead, consuming resources without
generating prosperity,
• the feasibility of managing income tax intricacies is heavily
skewed in favor of the rich, and
• the tax mechanisms of regional governments encumber the
moderating forces of competition for public patronage by
inhibiting comparison and overreaching jurisdiction.
A little thought leads to a better tax system. Government should
be paid according to the prosperity of its people. Therefore, tax
should be on consumption not income. Overhead should be
limited. Therefore, taxes should be few, simple, use a minimal
collection mechanism, and have ubiquitous coverage. A flat sales
tax on the ubiquitous forms of energy does this. Energy utilities
5.6 Taxation 209
are perfectly positioned to assess taxes and report personalized

summary information. The retail gasoline industry already
supports taxation. A tax summary with each sales receipt could
easily be added. Nothing represents the American Dream like the
consumption of energy. The added incentive of conservation
promotes a cleaner environment and even national security.
Regional governments would serve us better if subjected to
market forces. This could be achieved by uniformly using the
same flat-rate taxation scheme on the same handful of consumer
energy markets. All subordinate levels of government would be
constrained by veritable template to set tax rates and collect taxes
based on point of sale only. Point of sale is a thorny concept that I
would define as the fixed point of delivery if the business model
itself fixes such a point (i.e. a gas pump or wall outlet); otherwise,
I would define the point of sale as the point occupied by the
engaged business element at the moment of sale. To use the many
points occupied by the client and not the business (think Internet)
would be wastefully oppressive. Within a framework of free-
market taxation Americans could shop around for the communities
and markets that best suit them as producers and consumers.
Higher taxes might fit affluent neighborhoods while lower taxes
might suit business districts or communities of affordable housing.
Some individual needs are appropriately addressed at the
communal level. In addition, taxation would clearly become
accountable. For every jurisdiction one's intuitive governmental
tax rate and the proportional change necessary to balance that
government's budget, in theory, are a simple truth owed to the
American people.
Now a painful truth we owe ourselves: Taxes are a good thing.
Please clear your mind of hysteria. We regard a vaccinal shot in
the arm, even of two-year-olds, as a good thing. To enjoy our
democratic way of life, we the people must take our medicine.
Forget the cost of a people's government in money units. Each
year government must consume resources that don't produce them-
selves. Say what you will, but taxes are the only explicit and
configurable way for government to place it's burden. If Congress
were limited to tax revenue, even slow people might resist the
contemporary magnitude of corruption. Less and lesser criminals
might run for public office. Alas, the almighty, elastic dollar.
Your numbers doth change.
Elastic U.S. currency is something achieved by the Federal

Reserve Act passed in 1913. It was the first revision to the Amer-
ican banking system since the the National Banking Act of 25
February 1863, ch. 58. The enlargement of forced ‘investment
banking’ with the U.S. Government by the final legal-tender act,
signed by Lincoln on 3 March 1863, stands discounted. The justi-
fication given for elasticity was improved banking stability, but
such a summary rationale wasn't really true. Elasticity rather
enabled the application of an intentional monetary force that in
theory could be skillfully applied to counter the net monetary
instability within the economy. Some might say to counter a
correction. A lesser man's liquidity crisis might be a greater soci-
ety's liquidation solution. Elasticity fostered a grand simulation of
stability with important specialists at the helm. The actual insta-
bility would not be assuaged until enactment of the Banking Act of
1933, also known as the (Second) Glass-Steagall Act. The
national banking system created during the Civil War placed the
New York City banks at the pinnacle of a pyramidal nexus.
Country banks deposited money with city banks which deposited
money with big banks of the City. The New York banks were in a
better position to make loans, often call loans to stock market
speculators. Banks are resolutely in the business of making loans.
Economic downturns provoked an outflow of money from the
New York banks to the hinterlands' banks. To a lesser degree the
farming cycle caused the same phenomenon. Politicians were in a
position to aver the motive of eliminating the seasonal interest rate
hikes faced by farmers at planting and harvest times. The deple-
tion of deposits for any reason forced the New York banks to call
back loans at the worst possible time. The stocks bought on
margin by speculators were collateral protecting the New York
banks. Banks could recoup their loans by selling the collateral
unless the market value fell substantially, just what heavy selling
by banks is prone to cause. During development of the Federal
Reserve Act, the most recent and quite motivational case in point
was the panic of 1907. A consortium of bankers led by J. P.
Morgan rescued New York from financial collapse with an injec-
tion of liquidity. Congress decided a public mechanism would
better serve the worthy purpose.
The rescue of depositors from failed banks and so the elimina-
tion of bank runs was not addressed by the Federal Reserve Act.
The beneficiaries of the easy money, the new Federal Reserve
5.6 Taxation 211
notes, were to be the Government and commercial banks. The

United States notes issued under the authority of the legal-tender
acts remained legal tender, as they are today. National banks char-
tered by the Federal Government were required to become
member banks with one of the 12 newly created Federal Reserve
Banks. Membership entailed an account with the local district's
Federal Reserve Bank, a situation useful for clearinghouse func-
tions and more. The rapid adjustment of money supply was
accomplished by manipulating the rediscount rate. Member banks
could sell their loans to the Fed through the presiding Reserve
Bank's discount window at a price that would yield the Fed interest
at the rediscount rate. (Today the Fed's discount windows operate
very differently.) If the Fed chose to remove from circulation the
portion of the loan payment equal to the widow advance, the
elastic money supply automatically reverted to its original size in
accordance with the real-bills doctrine. Both the member bank
and the Reserve Bank retained a fee. Each Reserve Bank backed
its own particular notes with its own reserves, hence the central
banking system's name. Federal Reserve notes were backed by
gold. Federal Reserve banknotes were backed by U.S. Treasury
bonds like national bank notes of member banks. The introduction
of U.S. notes and national bank notes are detailed supra in
subchapter 1.1, “Why this Primer.” All four forms of national
currency were equally redeemable for gold. Let's not slight the
gold and silver certificates, nor the gold, silver, and minor coins.
The array of currency types disguised the potential of the new
central banking system. Government deficit spending had not
been loosed, but the release mechanism was in place. American
scruples had only to habituate on judicious application under dire
circumstances.
The Treasury was marketing its last major round of U.S. bonds
in late 1919 and the aftermath of the War To End All Wars. The
gold standard had been reestablished since March in the United
States, but in Europe it lay in tatters. Federal Reserve notes domi-
nated the circulating U.S. currency. Inflation and the stock market
were high. The remedial move by directors of the Federal Reserve
Bank of New York to increase the rediscount rate from 4 to 43/4
percent showed nerve and garnered antagonism. Still, the redis-
count rate was ratcheted up to hit seven percent in June 1920. The
preponderance of U.S. government securities led to the discovery
of open market transactions. In early 1922 the Fed, for lack of
income-generating assets normally obtained by rediscounting,

purchased $400 million worth of government securities. Yields
fell, the shortest term and most susceptible rates by one and a half
percent. The Treasury Department asked for consultation on
future operations. It appears that creating money to pay the central
banking system's bills directly would not have been proper. Two
years later rediscounting became a secondary measure to open
market operations. Now the Federal Reserve could fully reap
inflationary gains not yet amounting to much. The Federal
Government ran lean and mean in the 1920s, thanks in no small
part to Andrew Mellon, Treasury Secretary 1921–1932. It would
be the last time. It is facetiously said three Republican presidents
served under him. While it is true that he authored legislation
giving himself and his rich friends generous tax breaks, he was
worth every penny. The former repeal of the gift tax is hardly
disturbing, and anyway people practically thought they had money
to burn. If anything, Mellon was guilty of indulging rank-and-file
Americans with too much prosperity.
World War I like any war destroyed wealth and the means both
human and capital to produce it. Of course the United States,
transformed from a debtor nation to the premier creditor nation,
did not bear the brunt of that burden but rather turned a profit.
That profit could only have come at a net loss to the international
economy that had enabled efficiencies upon which participating
nations depended. The precious profit would not long be squan-
dered. The green leadership of the United States was training on
the job. President Thomas Woodrow Wilson played the leading
role of peacemaker despite eventually siding with the Allies.
Wilson discontinued diplomatic relations with the Second Reich
on 3 February 1917, and signed a declaration of war against the
German Empire on 6 April 1917. The United States likewise
declared war against the Austro-Hungarian Empire on 7 December
1917. Because the British controlled the surface of the seven seas
and the Allies blockaded the seafaring shipment of ‘contraband’ by
the United States and other neutral nations to the Central Powers,
the Germans were constrained to interrupt sea trade to the Allies
with submarine attacks. A moribund German Empire signed an
armistice agreement, not a declaration of surrender, on 11
November 1918. Wilson had brokered a peace outlined by his
Fourteen Points on an illusory common ground. Whereas World
War I ended with the welcome of German troops in Berlin as the
5.6 Taxation 213
‘undefeated army’, World War II would end with German citizens

compelled to take a guided tour of death camps and bury the dead.
President Wilson insisted the negotiations for peace terms among
the Allies begin with the creation of a charter for a League of
Nations, but the addition of a World Court by article 14 derived
from British and American insistence over Wilson's objection.
Wilson's peace strategy removed multiculturalism at the national
level, by nationalizing eastern Europe along cultural lines, and
institutionalized multiculturalism at the international level as a
binding virtue of enhanced scope. The people of France and
Britain were adamant that Germany pay for pretty much every-
thing, far beyond what was agreed by armistice negotiations. The
French passions would prove more resolute. Germany had
extracted Alsace, Lorraine, and the equivalent at the time of
roughly $1 billion from France in the Franco-Prussian War (1870–
1871) that had consolidated the Germany Empire now dying.
Going by the armistice negotiations, American experts estimated
German liabilities at $15 billion to $25 billion. For comparison
the European Allies owed the United States $10 billion. Political
wrangling made setting a total figure impractical and a realistic
one impossible. The irascible issue was deferred. Germany
signed the Treaty of Versailles on June 28th only with Allied saber
rattling. The United States did not ratify the treaty and never
became a member of the League. The French, keen to their
current vulnerability and diminished glory, demanded reparations.
The ‘negotiations’ in 1919 of the terms of peace so disturbed the
principal representative of the British Treasury that he resigned
and made public his objections to the heavy war reparations. That
is to say John Maynard Keynes authored The Economic Conse-
quences of the Peace (1919). He later observed that the United
States had charged European Allies only when U.S. forces were
not complimentary. The schedule of reparations was established in
May 1921. The projected total was 132 billion gold marks ($33
billion). Due, as may be argued, to past inflationary wartime
spending, to lost land, and to reparations, Germany experienced a
debilitating hyperinflation in the early 1920s that enabled packets
of German currency, denominated in marks, to double as toy
building blocks for the future soldiers of the Third Reich.
Germany began issuing a new currency on 20 November 1923, the
rentenmark valued at 1 trillion paper marks. The restoration of
Germany's economic standing in the international community was
achieved in 1924 with the Dawes Plan, developed under U.S. lead-
ership. The reichsmark became the new German currency, repara-
tion payments were reduced, and an Agent General for Reparations
was posted to supervise the conversion and delivery of payments
in foreign currencies and in kind (meaning in the form of
commodities or produce). The new currency was backed by a
multinational loan in foreign currencies worth 800 million gold
marks. The United States, or rather those American investors
conjured up by Wall Street, provided half; British investors, a
quarter. The Federal Reserve kept interest rates low and dollars
easy from 1924 until 1928, a help to floating the Dawes loan but
primarily meant to improve foreign investment generally with the
aim of encouraging foreign adoption of the gold standard.
With confidence soon renewed U.S. citizens invested in
Germany. American perception was a commodity valued in many
quarters. While between having been and soon to again become
president of Germany's central bank, the Reichsbank, Hjalmar
Schacht wrote and had published The End of Reparations (1931),
lest the world ignorantly persist with economic folly or believe
Germany was blind to a double standard of morality embodied by
the Treaty of Versailles and its reparations. Schacht, like many
polemists, cited from a paragraph of the Report of Committees of
Experts to Reparation Commission, dated 9 April 1924:
But the limits set by the economic balance, if impossible of exact
determination, are real. For the stability of a country's currency to
be permanently maintained, not only must her budget be balanced,
but her earnings from abroad must be equal to the payments she
must make abroad, including not only payments for the goods she
imports, but the sums paid in reparation. Nor can the balance of
the budget itself be permanently maintained except on the same
conditions. Loan operations may disguise the position—or post-
pone its practical result—but they can not alter it. If reparations
can, and must, be provided by means of the inclusion of an item in
the budget, i. e.: by the collection of taxes in excess of internal
expenditure, it can only be paid abroad by means of an economic
surplus in the country's activities.
Schacht identified, shall we say, a politico-socio-cultural
problem dovetailing into the ‘transfer problem’:
Throughout my service as President of the Reichsbank I continu-
ally sought to call attention to the relation between foreign loans
and the Transfer Problem. I did not act in the interest of my own
country alone, but primarily in the interest of the private creditors
5.6 Taxation 215
who made these loans to us. My opponents, most of whom

belonged to the Socialist camp, constantly urged the most
generous acceptance of foreign credits, and since they controlled
or effectively influenced the political machinery of the new
Germany, they constantly succeeded in carrying out their
program. They were, at bottom, motivated by a desire to secure
profitable employment for the masses of industrial workers who
formed the bulk of their electoral following. Since systematic
increase of industrial export and agricultural production can be
achieved only slowly and painfully, they reached their goal by
handing out building contracts which did not and cannot in future
yield an economic return. I said in a speech made at Bochum in
November, 1927, that, even then, careful investigations by the
Reichsbank revealed the fact that if the cities had not undertaken a
series of luxury, or at least not urgently necessary, expenditures,
they would, in all probability, have needed no foreign loans.
Among these luxury, or not urgently necessary, expenditures I
included the building by German cities of stadiums, swimming
pools, parks, public squares, dining halls, convention halls, hotels,
offices, planetariums, airports, theatres, museums, etc., and the
purchase of land.
As president of the Reichsbank in the Weimar Republic,
Schacht had actually advocated the restriction of foreign loans.
Describing the same intrigue, Keynes publicly outlined in 1926,
“How long can the game go on? The answer lies with the Amer-
ican investor. *x*x* The moment when cancellation becomes a
living topic, an unavoidable burning issue of practical politics, will
be when the circular flow of paper is impeded and the artificial
equilibrium broken.” S. Parker Gilbert, the American lawyer
serving as Agent General in Berlin, gave similar warnings, but
Wall Street and Washington had contrary designs. Proponents of
private U.S. lending likewise peppered the press. One such voice
was propagandist George P. ‘Alpha’ Auld. In his book The Dawes
Plan and the New Economics (1928) he refuted Schacht, Keynes,
and the whole transfer problem with vacuous drone barely relieved
by the tautology of his purpose:
Upon the confidence of the American investor depends the
continued solution of the reparation problem, both in the broad
sense of a solution through the revival of Europe by American
capital and in the more restricted sense of a solution through
furnishing of foreign exchange for reparation transfers. It is, of
course, possible that the confidence of the American investor in
the Dawes Plan is based on complete ignorance that there is such
a thing as a transfer question. More likely, he is now beginning to
take note of the prophecies of disaster in 1928. Truth justifies all

things, including the circulation of pessimistic statements. But the
truth of the doctrine of the difficulties of transfer cannot be said to
have been established to the satisfaction of the Dawes Committee
as a whole, since an organization was set up by the Committee in
order to make a test of it.
Essentially, American citizens lent money to Germany to pay
France and other European allies to ultimately pay war debts owed
the U.S. Government. We the suckers. Or a progressively fair tax
on the rich and foolish. The Dawes Plan netted the U.S. Govern-
ment roughly $1 billion. The Young Plan of 1929 further restruc-
tured and reduced reparations, but its actuation foundered. A
convention adopted at a conference held June 1932 in Lausanne,
Switzerland basically canceled Germany's unpaid reparations. In
1934 the United States would officially recognize that outstanding
intergovernmental war debts would not be received. Meanwhile,
the Weimar Republic would fall, a creditable Adolph Hitler would
offer a return to glory, and Dr. Hjalmar Schacht, restored to the
helm of the Reichsbank, would launch the Third Reich's economic
transformation. As Schacht explained about the settlement of the
War in his 1931 book, “No one in the world can believe that this
will ever be forgotten by a people which counts Luther and Kant
among its sons and in its contributions to human civilization ranks
second to no people on earth.”
To pay reparations, Germans simply turned to the printing press
and currency markets when foreign credit was not forthcoming.
Soon it was. In hindsight the ability of Germany to pay was quite
plausible economically. It was the willingness to pay that was
definitely absent, and with the international acrimony and
misguided cooperation it figures. Well-to-do Americans did not
stop with German investments, of course. U.S. credit also went to
underdeveloped nations during the 1920s, to Latin America if not
elsewhere, assisting an overexpansion of production (i.e. a misal-
location of resources among competing uses by type and time) that
depressed prices and incomes throughout the world. Latin Amer-
ican countries were precariously reliant on the international price
of a few exported commodities. U.S. banking did not snub would-
be domestic borrowers either. Americans enjoyed a prosperity
gilded by indulgent recalcitrance and the technological deluge of
motorcars, radios, and refrigerators. Farmers modernized with
large loans for tractors, pressing food output higher and food
5.6 Taxation 217
prices lower. Congress and Hoover finally solved the problem in

1929 by creating the Federal Farm Board for making farmers loans
and storing excess crops. The wealth machine anchored by the
industrialized West was in misdirected overdrive, particularly in
the United States, and the tab must have been running.
The Roaring Twenties as counterforce to puritanical prohibition
fostered the flaunt of ‘irrational exuberance’ by Americans, even
throughout 1929 despite worldwide signals arising by fall that an
economic redress was in order. The relative persistence of the
American economy may reflect America's extremity in the self-
inflicted international debt chain. The most famous signal was the
spasmodic crash of the New York Stock Exchange over the week
ending Black Tuesday, October 29th. The Fed's Board of Gover-
nors took no action. One can surmise their lack of concern for a
stock market propped on highly leveraged and widespread specu-
lation. However, the nearby directors of the New York Federal
Reserve Bank boldly took action. On Black Tuesday they bought
$132 million in U.S. government securities: an emergency open
market operation. A series of cuts would reduce New York's redis-
count rate of more than 5 percent to 21/2 percent in June 1930.
New York bankers recalled loans from Germany, releasing the
country to a free fall into the Great Depression and Nazism.
Newly elected Herbert Hoover projected optimism to shore up the
psychological forces of the American economy. Businessmen
rallied to their kindred President with prognostications full of
holiday cheer. According to an analysis from Standard Statistics
published shortly after New Year's Day, the future of the American
automobile industry depended as always on the continuity of ‘the
most “wasteful” class of human beings that has ever inhabited this
planet.’ Today the American consumer is 70 percent of the Amer-
ican economy, or so the media tells us as if economic vitality is
consumption independent of production, as if the raison d'être of
an economy is to intoxicate rather than productively economize, to
enjoin a net destruction of wealth rather than a net creation.
The Fed injected $440 million with open market operations in
the last two months of 1930 as the first banking crisis begun just
that October was surging. Another $130 million was added the
next year, and by August the crisis was over. Again, open market
purchases were made in 1932, but only a paltry $1 million or so
for a novel purpose. The First Glass-Steagall Act enacted 27
February 1932 permitted until 3 March 1933 the issue of Federal
Reserve notes backed not by gold but ‘direct obligations of the

United States.’ Another banking crisis began in October 1932.
Hoover would finish his presidency under the pall of the Great
Depression. The shantytowns that blossomed were called
Hoovervilles. His successor Franklin Delano Roosevelt (FDR)
stopped bank runs on dollars of both paper and gold—the paper
dollar was not then almighty—by declaring an immediate four-day
bank ‘holiday’ on only his third day in office, 6 March 1933. The
banking freeze actually lasted until March 13th for larger banks
and a day or two later for smaller banks if they were not shut down
altogether. During the interim Roosevelt claimed for the Fed's
purposes the gold held by all commercial banks, and the Fed's
Board of Governors began gathering the names of all persons who
had withdrawn gold since February 1st. Roosevelt initiated a
‘reflationary’ slide of the dollar's value when he announced on 19
April 1933 his intension to devalue the dollar. Congress would
cooperate. The anatomy of the bank run had been too many
credit-based dollars begetting too few real dollars begetting a
prescient flight from paper to gold dollars. The United States did
not have a gold shortage during the Great Depression, like coun-
tries other than France generally had, only a dearth of political
commitment to the gold standard at $20.67 per ounce. Gold
confiscation became the basis of a political solution equitable to
savers, borrowers, and the U.S. Government alike. Dollar elas-
ticity for the little guy was finally enacted 16 June 1933 by provi-
sion within the (Second) Glass-Steagall Act, or the Banking Act of
1933, for a Federal Deposit Insurance Corporation, an idea
Roosevelt initially disliked. The act also severed the banking
industry's linkage between securities speculation and depositors.
That separation was rescinded on 11 March 2000 by the Gramm-
Leach-Bliley Act, signed by President Clinton 120 days earlier.
Bear Stearn, Freddie Mac, and Fannie Mae have been bailed out in
2008. It pains me that a statement of the obvious could be a public
service message to my fellow Americans. The choice of social
regulation is philosophically either to prohibit socially destructive
behavior and limit our freedom, or to let ruinous practitioners
weed their shortfalls from our midst and limit our government
stewardship. We need some of both. We should be getting more
sophisticated over time. Choose wisely. I'm Douglas Morris and I
approve this message.
5.6 Taxation 219
Government oversight of the American economy fundamentally

changed with FDR's presidency. To understand this change, the
distinction between monetary policy and fiscal policy must be
understood. Monetary policy changes the supply of money
including credit without utilizing a net change in the money-
controlling government's financial position, that is without influ-
ence from the balance between government revenues and expendi-
tures. The tools of monetary policy are interest rates and reserve
requirements controlled by a central bank, its open market opera-
tions as well, and in an extrinsic sense the free exchange permitted
between currency and gold. Fiscal policy changes the supply of
money by manipulating the relationship between government
revenues and expenditures. The tools of fiscal policy are govern-
ment debt monetization, the opposite government surplus demone-
tization, and government borrowing, though in an imperfect sense
for bank credit invested in government borrowing as far as the
investment does not initially reduce the money supply. The Fed is
limited to monetary policy and the Treasury is identified with
fiscal policy, but the U.S. Government ultimately has both types of
policies at its disposal.
In the early 1920s the Fed had developed a policy of using open
market operations for the principal control of monetary policy
supplemented by limited borrowing through the discount window.
Bank runs early in the depression conditioned banks to develop
emergency reserves of their own to avoid the dangerous stigma of
the discount window. As a result the Fed lost control over interest
rates around May 1933. The leadership of the Fed was dominated
by neoclassical orthodoxy and wanted to contract the money
supply. The breakdown of manipulative control over the bank
reserves made that impossible. The Fed's income came from
purchased securities, no longer obtained via the discount window,
and open market sales were too costly and inadequate. After
March 1933 open market operations were solely purchases to
accommodate bank runs with currency. In a period over the years
1936–1937 the Fed's Chairman and Board led an abortive defla-
tionary monetary policy by increasing reserve requirements
several times until constrained by statutory maximums. Roosevelt
reversed his more potent fiscal policy 1937–1938 to redeem his
‘Pittsburgh pledge’, an old campaign promise to cut government
spending by a quarter. Because the familiar economic upswing
expired, the fiscal restraint was abandoned. Political lore
describes FDR's deficit spending as unusually vigorous, bold, and

salutary. A more objective analysis finds that his deficit spending
was marginally inflationary and comparable to that of Hoover.
Roosevelt's strategy put a premium on structural changes to the
American economy.
Elasticity is necessary for whosever banking stability if banking
does not entirely derive its profits from depositors' payments.
However, elastic salvation has limits that mass mania can surely
surpass. Spreading economic sin evenly across society can make
only so much of it negligibly thin. Savers were initially rewarded
by the Great Depression because political leadership had not yet
adjusted to the expectations of less capable Americans. Banks and
stock markets were distrusted, certainly for good reason.
Bankruptcies led to drawn out legal proceedings. Effective capital
formation like wealth in general was wanting. What Americans
weaned on the New Era didn't wish to consider was that the pain
was unavoidably deserved. Secretary Mellon viewed any interfer-
ence with the unfolding tribulations as delay to recovery. Once in
office FDR was eager to demonstrate government stewardship to a
new kind of American.
The response of Americans to the Gilded Age (1870–1898) had
been the Progressive Movement (1900–1917). Important literary
works of the period are The History of the Standard Oil Company
(1904) by Ida Minerva Tarbell, The Struggle for Self-government
(1906) by Joseph Lincoln Steffens,18 and The Jungle (1906) by
Upton Sinclair. Those books respectively exhorted the public on
the topics of corporate dominance, corruption of State and local
government, and unsanitary meat products. Sinclair, a socialist,
had originally detailed in graphic language the exploitation of
Chicago's immigrant workers for the excesses of capitalism, but
book market considerations compelled him to edit his work,
unearthing a theme distinguished by consumer danger. Greatly
conscientious presidents Theodore Roosevelt on his Square Deal
platform and Woodrow Wilson with his New Freedom extended
government to challenge big business. Teddy Roosevelt success-
fully introduced regulation of railroad commerce and of food
safety to include meat products. He also constrained the business
18 The citation with full title is: (Joseph) Lincoln Steffens, The Struggle for
Self-Government; Being an Attempt to Trace American Political Corruption
to Its Sources in Six States of the United States, With a Dedication to the
Czar (1906).
5.6 Taxation 221
activities of major corporations with litigation gradually

supplanted by administrative oversight through the Department of
Commerce and Labor, created in 1903. Between the Roosevelt
and Wilson administrations, when William Howard Taft was Presi-
dent (1909–1913), the Constitution was amended for the first time
since the Fifteenth Amendment had given black men the right to
vote. With the Sixteenth the federal income tax that the Supreme
Court had ruled unconstitutional in 1895 became constitutional.
The political motive was to tax the rich more than the poor (the
definition of a so-called progressive kind of tax), but as Andrew
Mellon would explain in the 1920s the rich will avoid paying high
taxes, those breaching some threshold. (We know that from all
income earners no tax revenue is generated at 0- and 100-percent
tax rates and that the maximal revenue for government is achieved
at some intermediate position.) Wilson as President successfully
reduced tariffs, introduced federal child labor standards, weakened
business trusts, and yes, introduced a heavy income tax on the rich.
During Wilson's presidency the 17th through 19th Amendments
were ratified. These were the amendments for the popular election
of Senators, Prohibition, and women's suffrage, respectively. The
popular election of Senators means more propaganda without
representation for us today. Prohibition increased alcoholic
consumption, organized crime, political corruption, and because of
degraded beverage quality, health risks. Women's suffrage cleared
the way for the nanny state and the consequent sharp increase in
Federal Government growth introduced by President Herbert
Hoover.
President Franklin Roosevelt, who criticized Hoover's deficit
spending during the 1932 campaign, is praised for his similarly
stimulative federal spending because the polished adulteration of
his political legacy suits the purposes of Congress after Congress.
Within the Progressive Movement a progressive education move-
ment led by nonintellectuals subverted the cold pursuit of intellec-
tual sophistication with happy social adjustment to the collective.
The Soviet Union's orbiting Sputnik I in 1957 would rouse Ameri-
cans to their folly. The Progressive Era came to an end with U.S.
commitment to World War I and a wartime economy. The Allies
would have been well advised to soundly break their rival's culture
and to subsequently permit its people to reconstitute themselves
under scrutiny sans retribution. As described supra President
Wilson placed his hopes in a polity of the common good that was
rejected by the U.S. Senate. Before the Roaring Twenties,

progressive politics used government to thwart the plutocratic
Establishment and restore competitive vitality. After the Roaring
Twenties, progressive politics made government the Establishment
itself. Over time Republican and Democrat vermin have increas-
ingly bridged that paramount distinction and increasingly
constrained American voters to judging it. The causes of onset,
course, and remediation of the Great Depression are hotly
disputed. With political control over many hundreds of billions of
dollars perpetually at stake it should not be surprising. The victors
write history for a reason. Despite the risks of a mistaken grasp—
however compounded by my lack of credentials or yours—let's
dare take ownership of our country's history, policies, and
sovereignty.
A significant difference between the Square Deal and the New
Deal was the political narrowing of the term ‘welfare’. FDR's
‘innovations’ were to a large extent politically expedient experi-
mentation. Unanticipated deflation had accrued to lenders at the
expense of debtors, especially farmers adamant and contentious
for their mode of living. Tariffs were benefiting manufactures but
not farmers. A law imposing a reduction of outstanding debt on
loans of some minimal duration to counter let's say two-thirds of
the ruinous deflation, if such an approach were possible, would
have protected the reward and virtue of saving money, allowed
markets to work, and should one suppose the necessary armed
enforcement, redirected the production of truly subpar farmers and
farms to better uses. Many farmers like many Indians before them
were not habituated to relinquishing the limited resource land for
more productive or less wasteful uses as dictated by capitalism-is-
an-extension-of-ecology natural law. Future technological effi-
ciencies would not smile on ‘agricultural fundamentalism’. The
73rd Congress and President Roosevelt were certainly able to
abrogate gold clauses in private contracts and make debts payable
only in current legal tender, meaning paper. Roosevelt could only
have prepared the contingency to devalue the dollar as he reformed
the banking system. His actions during the first month or two of
his presidency apparently ended the worst of a depression that
curiously lingered another eight years. The timing of his national
holiday so soon after his inauguration was no coincidence. Before
Hoover lost his reelection bid in November 1932, Americans had
enough reason to fear not only bank failures but the demise of the
5.6 Taxation 223
U.S. gold standard itself. Whilst Roosevelt equivocated on the

issue as President-elect, his sincere consideration for the dollar's
devaluation became all the more palpable. Though the United
States, a perennial net exporter holding one-third of the world's
gold reserves, was awash in gold, New York City's financial
system was approaching collapse on Inauguration Day, Saturday, 4
March 1933, when New York State became the next State
observing a bank holiday. Leaders of the nearly bankrupt New
York Federal Reserve Bank beseeched Roosevelt to suspend
banking nationally: Wall Street was too big to get soaked.
Because it was politically expedient with the farming lobby, FDR
also propped up agricultural prices with government subsidies for
agrarian idleness, retroactively simulated with the destruction of
cotton plants in numerous fields and piglets in the millions. Like
progressive education the New Deal lacked credible theory. Enters
John Maynard Keynes, stage left.
In response to the Great Depression, Keynes wrote The General
Theory of Employment, Interest and Money (1936). Keynes
argued against the neoclassical theory that dominated his age: the
theory that markets though in flux due to changing circumstances
were also self-correcting toward an optimal equilibrium virtually
at full employment with savings matched to investment. Instead,
matched investment and savings could exist with substantial
unemployment because the pricing mechanism of supply and
demand is inadequate. Moreover, if investment is less than
savings, purchasing power is withdrawn from the economy and
unemployment will result. Unemployment will reduce income
which tends to reduce investment and a degenerate spiral can
occur. If overall investment were to exceed overall savings upon
which to draw, the demand of investment for goods and services
must increase employment. Only once full employment is reached
could investment demand be unsatisfied and thus raise prices.
Keynes held that the solution to the Great Depression—and
Keynes was looking no farther—was to expand the money supply.
Money supply can be expanded by reducing interest rates to stimu-
late credit in the private sector or by the irresistible method of
government deficit spending. Beyond full employment govern-
ment should rein in money expansion to avoid inflation. There
was a natural dissociation between unemployment and inflation
that in sluggish times accommodated both a negative output gap,
meaning unrealized output potential, and the opportunity for
government to optimize its nation's economy. It seems to me

Keynes was essentially saying that apparent inflation would be
substantially offset by a reciprocal real deflation because labor not
capital, not know-how, and not regulation barring entrepreneurship
was the factor decisively limiting money circulation. Any unneu-
tralized inflation was a redistribution of purchasing power for the
greater good.
The Great Depression did not end in the United States until after
American entry into the Second World War. Kudos for America's
economic recovery after more than a decade of despair belongs to
Hitler before Roosevelt. Keynesians, the people who subscribe to
Keynes' theory, interpreted the Great Depression as evidence that
not just interest rates but the whole of monetary policy was an
inconsequential means of managing an economy. Keynesians saw
World War II as confirmation of government spending as the solu-
tion to economic recovery with full employment. After the war
policymakers abandoned the idea that recessions are inevitable
outcomes of speculation and adopted the consensus view that
government was responsible for managing aggregate demand with
fiscal policy. The Treasury and Fed had agreed to fix their interest
rates in April 1942 for the war effort. The peg on 3-month trea-
sury bills was incrementally adjusted upward from August 1947 to
October 1948 to coordinate with the 1-year treasury certificates.
With the Korean War (1950–1953) came inflationary pressure and
threat of a monetization deluge that prompted the Treasury and the
Fed to unpeg interest rates in March 1951. The Fed thereby
resumed a regular monetary policy, something not seen since
1933, and for the first time attempted to control inflation caused by
federal deficit spending. This was the debut of monetarism,
Keynesianism's only serious rival in the battle for politico-
economic supremacy in latter 20th-century America.
With appointments to the Fed's Board of Governors by the John
F. Kennedy and Lyndon B. Johnson administrations, Keynesian
views became ascendant. President Kennedy adopted the 4-
percent unemployment rate as a national goal. President Johnson
vetoed the use of monetary policy for reducing the trade deficit.
Richard Nixon changed the political affiliation of the White House
in the early 1970s, but not the economic one. He eventually
imposed price controls, something Johnson had done, and by the
time of Nixon's administration the Keynesians firmly advocated
the practice. Shortages ensued. The removal of price controls and
5.6 Taxation 225
Nixon resulted in a Ford presidency saddled with stagflation, the

coexistence of high inflation and high unemployment. The 1970s
ended with the Jimmy Carter administration and more stagflation.
The former Keynesian impossibility was explained by cost-push
inflation. The concept had been developed for the Kennedy
administration on an empirical basis and indicated the solution of
price controls. It was contrary to Keynesian thinking until obser-
vations obliged revision 1969–1970. The economic value of cost-
push inflation derives, in my opinion, from the hyperbolic applica-
tion of real inflation as defined in subchapter 2.6, “What's Yours.”
The political value of cost-push was plain: blame OPEC. The
double-digit inflation rate derived from some combination of more
dollars and less goods and services, of which oil was a part.
Therein lies the little research project you've always wanted. After
becoming Fed chairman on 6 August 1979 Paul Volcker defied
convention, raised interest rates, and tamed inflation in the early
1980s. We can at least thank Jimmy Carter for Volcker's nomina-
tion. However, the change in focus from low unemployment to
low inflation fostered the nefarious brand of monetarism that now
carefully distributes the largess of fiscal excess among the three
avenues of inflation now, inflation later, and maximal discount on
labor. The next Fed chairman, effective 11 August 1987, was Alan
Greenspan, who made famous the phrase ‘irrational exuberance’ in
1996 as the dot-com paradigm gathered esteem. Greenspan's
successor is current Chairman Ben Bernanke who started on 1
February 2006, after inadvertently popularizing Milton Friedman's
metaphor of a helicopter showering the economic landscape with
money.
Consider this excerpt from Greenspan's speech of 12 April 1997
given at Arlington, Virginia:
As the history of American banking demonstrates, private market
regulation can be quite effective, provided that government does
not get in its way. Indeed, rapidly changing technology is
rendering obsolescent much of the old bank examination regime.
Bank regulators are perforce being pressed to depend increasingly
on ever more complex and sophisticated private market regula-
tion. This is certainly the case for the rapidly expanding bank
derivatives markets, and increasingly so for the more traditional
loan products. The lessons of early American banking should
encourage us in this endeavor.
If you haven't heard, private regulation of the derivatives market

has been a fiasco late in the 21st century's first decade. I contend
the intelligent, objective opinion of a learned laymen is as good in
economic policy decisions as the expert economist with his
wonderful equations. The soft sciences are heavily dependent on
the philosophy of the thinker and the the psychiatry of the society
examined. Jurisprudence is even less grounded in reality, even
softer of a science, and even more amiable to the layman.
Economists and lawyers use big words not big ideas. If so-called
experts can't express themselves with little words, their arguments
are baseless. This bodes well for the cause of democracy.
Greenspan's 1997 speech discusses the merits of government
versus private regulation. We can avoid frivolous debate by recog-
nizing a validity in both approaches. The crux is the distinction
that government regulation rejects the adequacy of the personal
sophistication throughout the public while private regulation
presupposes it. As I have been contending, technological advance
permits and enjoins personal sophistication. There is a progression
and our politico-social institutions should reflect it. Government
should spin off postal service and education. They are economic
sectors the private sector is now better able to handle via the free
market. Contrastingly, government should have provided a
consumer credit infrastructure to protect all Americans from the
crime of identity theft. Obviously, the private sector is not
adequately stopping this more recently popularized crime at large,
but it's getting there. Protection from institution-based crime is a
right not a privilege, and government should institutionalize or
democratize credit identity protection as part of its actual job.
Keynesian economics is a theory of government economic regu-
lation, but as comparison will show it does afford some latitude to
private regulation. The centrally planned economy of communism
well represents the extreme of government control. The
quintessential theory of private economic regulation could be the
Austrian school of economics, or in the degenerate case anarchism
for what it's worth. The Austrian adherent advocates laissez faire,
which precludes monetary policy. An Austrian could be construed
to be a monetarist who holds that the optimal adjustment to the
money supply is none at all—or a Social Darwinist. President
Grover Cleveland told us with his veto message dated 16 February
1887 rejecting a Texas seed bill, “A prevalent tendency to disre-
gard the limited mission of this [government's] power and duty
5.6 Taxation 227
should, I think, be steadfastly resisted, to the end that the lesson

should be constantly enforced that, though the people support the
government, the government should not support the people.” In
other words, there is no such thing as a perpetual motion machine.
The Keynesian directive of full employment, or subserviently
declining interest rates for that matter, represents the adulteration
of business standards and employee utility. Prosperity requires the
continual increase of business standards. Think cooperative
competition. Sharing the wealth is not persistively feasible if it
causes a persistent decline in aggregate wealth or in per capita
wealth, despite the most troubled feelings.
Keynesians and proponents of the New Deal will argue that
there was a shortage of money during the Great Depression. To
say that there was rather a shortage of money dedicated to invest-
ment is a valid distinction only from those who would not
prescribe generic government deficit spending. The purchasing
power of a unit of currency is unimportant by itself because the
total currency in play scales itself to the available goods and
services. That was the crux to the thought experiment involving
the Dougster Act, presented in subchapter 2.6, “What's Yours.”
The complete idea was that the distribution of purchasing power
was unchanged because the supply side of purchasing power is
relative not absolute. Individual purchasing power is relative to
extrinsic purchasing power and to existent wealth. That the worst
economic disaster in American history occurred because of a
nominal change in price levels due to a sizable contraction in the
money supply is absurd. The money supply must have drastically
concentrated its distribution when massive amounts of dollar-
denominated credit evaporated. FDR protected the purchasing
power of debtors by devaluing the dollar while restoring deposi-
tor's faith, if not their deposits, in 1933, the same year that unem-
ployment peaked and real GNP bottomed. Lenders, highly
leveraged beneficiaries of self-induced deflation, got less in theory,
but by getting something for risky loans they probably got more
than they deserved. Taking the brunt of the responsibility for the
credit debauchery but not the pleasure, savers were penalized for
saving. FDR's spending programs were consistent with corporate
concentration, but he did squeeze out new concessions for labor in
the late 1930s. The military spending of World War II must have
used inflationary spending to steal from the rich and give to the
working poor. With the purchasing power of money less concen-
trated it was free to circulate and spur economic activity. But the
rich catch on: “Anything you can do we can do better.” The
success of Keynesian economics during the Great Depression is
misrepresented to enable wealth concentration. Greater money
circulation could have owed as easily to the psychological
recovery of an already physically repaired economy.
So today, monetary policy is staged as part of a quasi-private
banking system. A modern government really has a fourth branch
deserving the public's full attention. The Federal Reserve Act, of
1913, begins by declaring its purpose to provide for the establish-
ment of Federal Reserve Banks and to furnish an elastic currency.
Elastic misleadingly denotes temporary expansion. The Federal
Reserve Reform Act of 1977 added a new paragraph (boldface is
my emphasis):
SEC. 2A. The Board of Governors of the Federal Reserve System
and the Federal Open Market Committee shall maintain long run
growth of the monetary and credit aggregates commensurate with
the economy's long run potential to increase production, so as to
promote effectively the goals of maximum employment, stable
prices, and moderate long-term interest rates. The Board of
Governors shall consult with Congress at semiannual hearings
before the Committee on Banking, Housing, and Urban Affairs of
the House of Representatives about the Board of Governors' and
the Federal Open Market Committee's objectives and plans with
respect to the ranges of growth or diminution of monetary and
credit aggregates for the upcoming twelve months, taking into
account of past and prospective developments in production,
employment, and prices. Nothing in this Act shall be interpreted
to require that such ranges of growth or diminution be achieved
if the Board of Governors and the Federal Open Market
Committee determine that they cannot or should not be achieved
because of changing conditions.
The authors of that text, if more than one, were talking out both
sides of their collective mouth. Their scheme was this: The Fed
shall expand money supply because it is intrinsically good, the Fed
shall consult with Congress about the Fed's plans to expand or
reduce the money supply, and the Fed shall be free to deviate from
their own plan if they determine ‘changing conditions’ warrant it,
which implies the plan is actually Congress'. The first sentence of
the legalese was what the pigs really wanted. The second and
third sentences were cover. The Full Employment and Balanced
Growth Act of 1978 struck out the second and third sentences.
5.6 Taxation 229
The replacement text specified the same elemental functionality

but with more rigor applied to the Fed's communications with
Congress. The only departure in the elemental functionality relied
on the more rigorous reporting and weakened the Fed's indepen-
dence. The replacement text ends:
Nothing in this Act shall be interpreted to require that the objec-
tives and plans with respect to the ranges of growth or diminution
of the monetary and credit aggregates disclosed in the reports
submitted under this section be achieved if the Board of Gover-
nors and the Federal Open Market Committee determine that they
cannot or should not be achieved because of changing conditions:
Provided, That in the subsequent consultations with, and reports
to, the aforesaid Committees of the Congress pursuant to this
section, the Board of Governors shall include an explanation of
the reason for any revisions to or deviations from such objectives
and plans.
As an interesting aside, the subsequent amendment specified in
the Full Employment and Balanced Growth Act of 1978 created a
section of legal corpus headed “OVERCOMING INFLATION” and
instructing the President to ‘initiate specific policies to reduce the
rate of inflation.’ The American Homeownership and Economic
Opportunity Act of 2000 likewise expunged all of section 2A of
the Federal Reserve Act except for the first sentence, the mission-
statement, but the directives on how to do it were placed in a new
section 2B immediately following. The instructive text is devoid
of ‘growth or diminution’ wording and any express latitude for the
Federal Reserve to determine the monetary policy it must report.
Harrumpph. Houston, we have a design problem.
Government (e.g. via the Fed) could adjust tax rates not interest
rates and, climactically, also affix the amount of government
spending to political economy not political expediency. This
obvious and potentially more equitable monetary technique has
been known presumably since political economy was studied and
debated in the 19th century. If the Federal Government were
limited to a simple taxation scheme with an immutable tax rate by
constitutional amendment, the Fed would have to directly manipu-
late changes to the Federal Government's fiscal position rather
than undermine ours in the job market with interest rates.
If you understand certain critical distinctions among a few
economic schools of thought, you will understand the fourth
branch of government. The Austrian school advocates no adjust-
ment in the credit-free basis of money supply, that is, ‘high-test’
money supply. The Keynesian school advocates adjustment in

high-test money supply to maximize economic output. John
Maynard Keynes advocated deficit spending but only without full
employment. The two schools could be reconciled if Keynesian
adjustments to money supply could approach a zero sum as the
time frame of the calculation is lengthened beyond a short-term
period. However, in Keynes' theory the good inflation moderated
by the advance to full output and employment was given no coun-
terpart of good deflation. The flow of purchasing power from the
old money to the new was a distribution for the common good.
My concern with ameliorating downturns of the economy at all—
and Keynesian economics goes further to correct any non-utopian
downwardness of every longevity—is the moral hazard insulating
economic participants from cause and effect. One must experience
one's vitality to personally understand responsibility and freedom.
The reigning ‘Washington’ school advocates adjustment in
high-test money supply and government borrowing to maximize
gratis economic output. The Fed's charter of protecting the U.S.
economy for the many has degenerated into a faculty protecting
the U.S. economy for the few—and the overt taxation sucks too.
We can't have an intelligent discussion about raising or lowering
taxes when there is no coherent tax rate to consider. The reduction
in taxes led by President Ronald Reagan primarily benefited the
5.6 Taxation 231
Table 5.6 Last Three Rate Schedules of the Social Security Tax
Calendar Public Law Public Law Public Law
Tax Year 93–233, 95–216, 98–21,
31 December 20 December 20 April 1983
1973 1977 (97 Stat. 87–8)
(90 Stat. 1806–7) (91 Stat. 1510–1)
1973 9.7%0
1974–1977 9.9%0
1978 10.1%0
1979–1980 10.16%
1981 10.7%0
1982–1983 9.9%0
10.8%0
1984
11.4%0
1985–1987
11.4%0
1988–1989 12.12%
1990–2010
12.4%0 12.4%0
2011–> 11.9%0
rich. The accelerated creep of Social Security tax increases that he
approved 20 April 1983, quite small in itself, has the distinction of
being the most recent round of rate hikes of a tax primarily
burdening working stiffs. Taxation should be light on everyone.
Small government is still just a campaign promise. Income tax is
the lead albatross in a troublesome menagerie.
Chapter 6
INFECTION OF SOLUTIONS
6.1 Fillers and Hollows
Most historians and social scientists have long since abandoned

the theory that American society was a melting pot.
—Michael Feldberg, cultural organization administrator
Mental value simultaneously supports and limits overall individual

value. Belief beyond understanding relies on luck not merit. That
shortfall is the hallmark of ineffectual, dependent thinking.
Healthy psyches reformulate or retract deficient beliefs rather than
defend and wield them. By eliminating the accountability gap
minds are independent and free to grow value. It is that same
value that pays the prerequisite cost of individual and social rights.
We agree ‘freedom isn't free’ for a reason.
The trade-off for the benefits of independent thought is the
increased exertion. Easy results correlate with hard efforts and
vice versa. Offerings of simplistic assertions, loaded questions,
and partial ideas offer a mirage of easy and easy. Such malformed
constructs are the spew of ideological drones and self-righteous
victims. These people follow politicians and news media who
orchestrate the mismatched details to advantage. News media are
in the news entertainment business, and entertainment is about
ratings. Ongoing media polls fundamental to today's political
process are not immune to power play. A targeted public is
responsible for knowing that proficiently.
The simplistic assertion glosses over hairy details. It is most
disguised when implicit in something else like a poll question.
Whether inept or calculated, a simplistic poll question may not
233
234 6. INFECTION OF SOLUTIONS
accommodate an intelligent response, even if you have one. It still

presents an opportunity; don't waste it! What do you say to “Is the
President doing enough in Iraq?” If a simplistic question or state-
ment insults your intelligence, please say so.
Another manipulative technique seen in politics is the loaded
question. Loaded questions imply some answers are better than
others. Does the question “How badly is the President managing
American interests with Mexico?” feel differently than “How
effectively is the President managing American interests with
Mexico?” If you don't intellectually recognize the feel before you
answer such a poll question, you are not equipped to respond as
part of the political solution.
Mutually beneficial communication is an exchange of ideas.
Part of an idea is not an idea. It's plain wrong to buy half a tool.
Exchange of partial ideas and half truths is misinformation. Is a
record profit a record for a particular company, a public oil
company this year, or for any human undertaking ever. Don't
forget the defining context. A GDP or other statistical quantity is a
different animal over a year's time rather than over a quarter. Use
all the units, particularly to identify the applicable scope and time
span. Is an increase in sales volume of $100,000 a big deal? Not
so much if worldwide sales are in the billions (for that period)
already. Think in absolute numbers, but also think in percentages.
Big next to big is different than big next to small.
Nail down your ideas into the context and don't readily except
sloppy ideas. We are getting what we deserve as a nation.
Without healthy and independent-minded debate, competition
among brokers of social power will require the tried, true, and effi-
cient seduction of the feeble psyche. Challenge that framework.
6.2 Political Rhetoric 235
6.2 Political Rhetoric
WAR IS PEACE
FREEDOM IS SLAVERY
IGNORANCE IS STRENGTH
—Eric Arthur Blair (1903–1950), a.k.a. George Orwell
Those poor of critical thinking skills are fodder to those rich in

rhetoric, notably career politicians. What follows are examples of
rhetoric from those career politicians. Two of the three are not
lawyers. Maybe it shows.
Rhetoric #1 from President G. W. Bush (R):
There is a rational middle ground between granting an automatic
path to citizenship for every illegal immigrant, and a program of
mass deportation. That middle ground recognizes there are differ-
ences between an illegal immigrant who crossed the border
recently, and someone who has worked here for many years, and
has a home, a family, and an otherwise clean record.
My translation #1:
Let's salvage all the worker imports we can.
Rhetoric #2 from Mayor Ray Nagin (D):
Dr. King, if he was here today, he would be talking to us about
this problem, about the problem we have among ourselves. And
as we think about rebuilding New Orleans, surely God is mad at
America, he's sending hurricane after hurricane after hurricane,
and it's destroying and putting stress on this country. Surely he's
not approving of us being in Iraq under false pretense. But surely
he's upset at black America, also. We're not taking care of
ourselves. We're not taking care of our women. And we're not
taking care of our children when you have a community where 70
percent of its children are being born to one parent.
We ask black people: it's time. It's time for us to come together.
It's time for us to rebuild a New Orleans, the one that should be a
chocolate New Orleans. And I don't care what people are saying
Uptown or wherever they are. This city will be chocolate at the
end of the day.
My translation #2:
You are terrified, incapable black people. Vote for me or Whitey
will take your welfare city.
Rhetoric #3 from Senator Orrin Hatch (R-Utah):

I fail to understand how a massive guest worker program that
constitutes an end-run around our immigration system is a good
idea.
xx* * * * *xx
We must restructure our visa system. We must determine—
affirmatively—what policies should guide admission to this coun-
try. We must provide for a truly temporary guest worker program.
We must create a realistic and effective employer verification
system. And we must find a humanitarian, just, and equitable
solution to the millions of people in this country illegally.
xx* * * * *xx
I believe it is absolutely critical that the United States Congress
address the issue of immigration, and I look forward to working to
improve this bill during the course of our negotiations with the
House. The real work lies before us, and I believe the men and
women of both bodies have the mettle, the tenacity, the intelli-
gence, and the drive to do what is right for the American people.
My translation #3:
Must be an election year. So today I'll oppose worker imports,
assure big business of my future support, and vote no. Bill S.
2611 has enough votes anyway.
6.3 Political Divides 237
6.3 Political Divides
There is in man a HIGHER than Love of Happiness: he can do

without Happiness, and instead thereof find Blessedness!
—Thomas Carlyle (1795–1881), Scottish essayist and historian
Make the choice to serve in a cause larger than your wants,
larger than yourself—and in your days you will add not just to the
wealth of our country, but to its character.
—President George W. Bush
Analysis of a problem, even a politically charged problem, is the

identification and characterization of the containing topology.
Solutions exploit boundaries. Solutions to social problems exploit
production vs. consumption, supply vs. demand, money vs.
wealth, and competition vs. cooperation. Solutions for special
interests palm off artificial boundaries to pen, divide, and conquer
the majority. America has not had a non-Demopublicrat President
in over 100 years. The Demopublicrat machinery offers just soup
or just salad. The big issue of the 2004 campaign was Iraq, and it
boiled down to this: the Bad-Plan Man vs. the No-Plan Man.
The Democrats are a party of backdoor socialists cultivating do-
gooder fodder. The Republicans are a party of side-door plutocrats
cultivating Christian fundamentalist and patriot fodder. Liberals
used to be against totalitarianism, at least in the form of monarchy.
The so-called liberal path embraces a subjugated heartland of
diverse homogeneity. The plethora of our differences is simply the
nuances of our sameness. Names are pointless, for there is nothing
to distinguish. The label ‘comrade’ greases we the cogs of the fair
economic machine. Egalitarian nonexistence is our chastity and
salvation. Conservatives have always supported the status quo and
incumbent power, not to be confused with unadulterated democ-
racy and unfixed free enterprise. The verily conservative path
embraces a subjugated heartland of unmitigated faith in God,
Country, and Social Darwinism. The plethora of our differences is
simply evidences of our merits and sins. Names are everything,
for there is everything to brand. The label ‘parishioner’ greases we
the cogs of the fair social machine. Major demagogic boundaries
are Democrat vs. Republican, liberal vs. conservative, black vs.
white, progressivist vs. traditionalist, and socialist vis-à-vis funda-

mentalist vs. fundamentalist. Earth and sky anoint whose Big
Brother?
Those dubious boundaries find life by nurturing self-righteous-
ness in weak characters and fallacy in weak intellects. The actual
play on voters is at the cleavage between human perception and
natural reality. A human being never directly experiences the one
true, natural Reality. Characterization of oneself and the world is
entirely a personal perception nebulously grounded by The Reality
—whatever that is. Interpretation of our raw sensory input has
much leeway. Some interpretations are learned, sophisticated, and
effective. Some are not.
Advocates of electronic baby sitting, that is television censor-
ship, reframe general prosperity vs. special interest as social
excesses vs. childhood needs. Abusers of eminent domain reframe
ownership rights vs. special interest as vain ownership vs. public
good. Supporters of worker imports reframe labor vs. special
interest as bigotry vs. compassion. Promoters of the Iraq War
reframed oil interests vs. national security as good vs. evil.
Federal election mechanisms introduce state and district bound-
aries. These boundaries elevate certain regional special interests to
special national interests. This arrangement made sense in the
early years of the United States of America, construed as plural.
Two hundred years later we are USA, and election mechanisms are
especially worthy of critical analysis.
Election systems are algorithms of virtually limitless variation
with complicated pros and cons. Don't assume the American
status quo is best. The use of plurality voting (relative majority
takes all) results in our dilemma termed a two-party system. Only
2 members of the 109th Congress (2005–2007) were not techni-
cally Demopublicrats. Many Senate and most House races are not
even competitive. The power concentration is audacious enough
to slant House elections for the majority party with a practice
called gerrymandering. These are seats in the most powerful
democratic government of the world!
In the elections of November 2002 the winner outspent his
nearest rival 439 of 469 times overall and 43 of 56 times for open
seats. An incumbent won 406 of the total 469 contests. Thereafter
the Bipartisan Campaign Reform Act of 2002 became effective
and solved all our problems. Bipartisanship is synonymous with
representation for all. In 2004 the winner of an open Senate seat
6.3 Political Divides 239
outspent his nearest rival 6 of 8 times. An incumbent won 421 of

469 Congressional contests overall. The lockstep between
campaign money and Congressional power is a real problem
because the richest five percent of the population holds one half
the wealth.
Money and power in Washington have been one in the same,
but need not be. That is the point of democracy! The thing going
for the other 95 percent of us is numbers. By voting to end polit-
ical careers, we can break the cycle and save our careers. Distrust
campaign messages and ratings-driven news entertainment. Never
just subjectively choose the least of two evils. Without an
immense and at least semi-objective difference choose the newest
evil.
Still the dilemma remains. We really have a one-and-one-
fourth-party system of incumbent and successor Demopublicrats.
Challengers win about one-fourth as many races the incumbents
win. The advantages of being incumbent and Demopublicrat don't
forgo much political potency. In the races of the eight national
election days from 1990 to 2004, only Bernie Sanders in 1990 for
a House seat won being neither an incumbent nor a Demopubli-
crat. All this because the design of our election system creates
restrictive boundaries. Localized interests should be filtered out
before the political decision-making process at the federal level,
not aggrandized before and stitched together into a citizenry's
straitjacket during. Not wasting a vote is not voting for what you
want!
A preferential and perhaps proportional nationwide voting
system for Congressional representation would allow multiple
frugal choices. A preferential voting system would break control
of the 1.25-party oligarchy on presidential elections. The ability to
vote against a presidential candidate, a negative preference, would
improve our freedom to vote precisely for what we want: Hitler.
You can learn all about voting variants at Wikipedia. As it stands,
Congressional members represent a special interest by definition.
National election scope will go a long way in fixing that. The
Founding Father's design has much virtue, but modern means
gives both us and the enemies of freedom greater options.
As an aside I note about presidential elections the archaic Elec-
toral College and the deteriorated concurrence of recent results
with our media's independent statistical analysis. Think Florida in
2000 and Ohio in 2004. Is this media overexuberance or is this
voting fraud? Regardless, a detached watchdog function of media

should be nurtured. Perhaps exit poll verification should be insti-
tutionalized with recourse of annulment and a more rigorous
repeat. Perhaps there should be life-threatening consequences for
corrupting our institutions of liberty.
Term limits apply to where we need them least, the one national
office of nationwide representation. Perhaps by ending lucrative
political careers in Congress, we could deserve statesmanship from
Washington. The only wasted votes are the ones not opposing the
status quo. As we drift slowly toward the advantages of a global
earth government, sustained prosperity depends on mass mastery
of democratic, economic, and social principles. After several
hundred years, the challenges of Democracy 102 stand squarely in
our path. Nothing is more fundamental than the design of our
election system. Are we still the leader of the free world or not?
6.4 Native Americans Et Cetera Wronged 241
6.4 Native Americans Et Cetera Wronged
One aged Indian who was commander of the friendly Creeks and
Seminoles in a very important engagement in the company with
General Jackson, was accosted on arriving in a little village in
Kentucky by an aged man residing there, and who was one of
Jackson's men in the engagement referred to, and asking him if he
(the Indian) recollected him? The aged Chieftain looked him in
the face and recognized him, and with a down-cast look and
heavy sigh, referring to the engagement, he said ‘Ah! my life and
the lives of my people were then at stake for you and your country.
I then thought Jackson my best friend. But ah! [ex-President]
Jackson no serve me right. Your country no do me justice now!’
—a Mainer traveling Kentucky in December 1838
The only ones I want to hear speaking up and complaining about
immigration are the Native Americans who we screwed.
—Governor Ed Rendell, D-Pennsylvania
Hello. My name is Doug, and I am a screwed native American.

The institution of guilt is destructive to the slave and the master,
by the way. And get the analogy right: we are a nation of natives!
To positively or equally value the coming of all immigrants is just
plain foolish. Not all immigrants bring benefit as did the German
scientists who advanced American expertise on the space frontier.
Some people bring ruin and some people are ruin itself. To
welcome ruination is to demean one's own life, welfare, and vital-
ity. It is to embrace personal poverty and to encourage personal
enslavement. To demean a Westerner's good life is to embrace
expansion of world poverty and world slavery. That's right, there
is unvarnished slavery in this world, mostly due to the non-
Western world. Guess which governments are trying to stop it?
Perhaps the domesticated gropers seeking emasculated chastity
think immigratory ruin is not their problem. It's truly not unless
within the groper's lifetime the consequences incubate, mature,
rupture the idiot's host society, and cast that society aside like a
spent chrysalis. The contributions of fools like that to humanity
are worse than nothing.
There is no better society, no better system, worthy of replacing
Western society unless we or another Westernized people create
and become it. There was no better society, no better system,
worthy of replacing European imperialism until European imperi-
alism created something better. No other social system on the face

of the earth has ever compared favorably with the representative
government and democratic culture of Western society created a
few hundred years ago.
Knuckleheads—dateline—meet the the unclean humanity we
the whole world are! John R. Miller, Director of the Office to
Monitor and Combat Trafficking in Persons, U.S. Department of
State, had this to say on 23 August 2004:
Today's slavery extends into every country in the world, including
the U.S. Our government estimates that every year, 800,000 men,
women and children are trafficked across international borders
into slavery. And that's across international borders. If you count
the thousands held in internal slavery on the farms of India, in the
charcoal pits of Brazil or in the brick kilns of Pakistan, the number
of slave victims is probably in the millions.
The State Department annually publishes the Trafficking in
Persons Report. In the seventh annual issue of June 2007 you
could, for example on page 23, read about the Child Sex Tourism
Industry.
I'd like to interject a comment about child pornography. The
criminalization of the viewing and the downloading of child
pornography is a wonderful tool for Big Brother to erase dissi-
dents. It's a way to remove accountability and justice from the
hands of we the people. You'd put little Suzy on a milk container
if she were missing, to get everyone to look! If everyone looked at
child pornography, the children would be recognized, and the
scum would be removed from our society. But then we would
have to be independent adults not sheep. Never mind.
So back to world slavery and the State Department's report.
The report divides countries into tiers based on the anti-trafficking
quality of the government, not the size of the trafficking problem.
Some sort of per capita ranking of the problem would have been
nice, and is forthcoming via another source, but let's work with
what we have here. The lowest, most shameful tier is tier 3. The
countries are listed in table 6.1. Notice where those countries are
located—not in Western society, thank you. Western society domi-
nates tier 1, if we can trust this propaganda about how superior we
are. The online report, should you care to look, has color-coded
maps showing all rated countries for your viewing pleasure.
Table 6.1 U.S. Government Reported Human Trafficking

Countries
Regional/Religious Culture Tier 3 Country
African/Christian-pagan Equatorial Guinea
African/Islamic, pagan Sudan
Central Asian/Islamic Uzbekistan
Algeria
Bahrain
Iran
Kuwait
Middle Eastern/Islamic
Oman
Qatar
Saudi Arabia
Syria
Southeast Asian/Buddhist Burma (Myanmar)
Southeast Asian/Islamic, Buddhist Malaysia
Southeast Asian/Buddhist, Confucianist North Korea
Cuba
Spanish American/Christian
Venezuela
An analysis on the strength of slavery throughout the world has
been published by the International Labour Organization (ILO) of
the United Nations in a report entitled Global Report under the
Follow-up to the ILO Declaration on Fundamental Principles and
Rights at Work 2005. Now pay attention. ILO's report starts off
like this:
Four years ago, the first Global Report on forced labour drew
attention to the gravity of the problems of forced labour in the
modern world, with “ugly new faces” such as human trafficking
emerging alongside the older forms. Since then the ILO has
sought to mobilize world opinion behind the goal of a fair global-
ization, in which people come first, with full respect for the core
labour standards embodied in the ILO Declaration on Funda-
mental Principles and Rights at Work adopted in 1998.
According to the study, on page 13, the minimal number of forced
laborers per 1,000 inhabitants by region in descending order were:
3.0 in Asia and the Pacific, 2.5 in Latin America and the
Caribbean, 1.0 in sub-Sahara Africa, 0.75 in the Middle East and
North Africa, 0.5 in transition economies, and 0.3 in industrialized

countries. These six regions were not defined within the report, at
least the online version, but maybe you get the idea.
The evil, white European invented and implemented freedom
for society at large—not the conjectural freedom emoted of late by
overindulged ingrates—over 200 years ago. The brutishness of
European imperialists and early Americans was unique among all
people of human history only in that it was independently super-
seded to such a liberating degree. Control of life-giving land is
regulated by the universal standard: might makes right. However
immoral and inhuman, that universal law drives humanity forward.
Greater technology permits and urges greater power, stakes, intelli-
gence, morality—but always more sophistication or else. Would
you the posterity of people living two hundred years ago rather
live in the Stone Age? Most North American Indians preferred
their traditional way of life—except for the blankets, knives, guns,
kettles, and horses constituting the progressive advantages. For
the lands of the Americas, Indians fought Indians. When the white
man came, Indians fought or allied with French or English as it
suited them. In the early 1540s De Soto unwittingly behaved like
a rival tribe-leading Indian by looting the holy ossuary-temples,
the shrines where chieftain bones might repose with copper and
pearls. Europeans fought for land because that's how precious
land was obtained and controlled. Get used to the idea. It's here to
stay.
Predating European influence, Amerinds in the U.S. Southeast
mutilated newly enslaved men in a way calculated to prevent
escape but not preclude labor output. Amerinds observed by
French explorer La Salle psychologically broke Amerinds for
servitude by forcing them to watch the torture of fellow tribes-
people and to eat from the remains. Amerinds such as the
Choctaws, Chickasaws, and Cherokees sold Amerinds as slaves to
whites in colonial times. Further north, Huron and Ottawa men
‘enjoyed’ their female Indian slaves, like slave-owning men, if not
women, of every race have enjoyed. Indians enslaved whites, and
vice versa. In Africa blacks sold blacks as slaves to whites and
became rich. The slave trade for European firearms created an
arms race in the Americas and in Africa. For some American
Indians, a plantation with Negro slaves might not have been much
of a leap. Propertied with plantations and slaves, not only
Amerinds but blacks (mostly mulattoes) formed diminutive

factions of Southern aristocracy. Some ownership of blacks by
blacks in the South was humanitarian; some was not.
Integration of Amerinds was demonstrated by opportunities for
white schooling and children of mixed ethnicity but marred by
alcoholism, dislodgement, government-induced welfare depen-
dency, scorn, and indolence. While sociocultural integration was
the most noble resolution, it was also the most constitutionally
exacting of the parties concerned. Most Indians failed to negotiate
the deluge of American culture and technology. Five groups of
Indians in the Southeast adopted the better European mode of
living, and basically four of those, Negro slavery. The Seminole
tribe was unique in that slavery was nominal and benevolent. The
Five Civilized Tribes adopted white institutions without joining
them, and consequently resisted removal best. Being south of the
Mason-Dixon line delimited the other side of the deadlock. Many
white Southerners, conscience of the fact or not, were racists in no
small measure to accord economic benefits to influential slave-
holders and politicians. The emotive arguments of Southern slave-
holding culture did not jibe with the acceptance of a mimicking
race of Indians. Public support of the Indian cause emanated from
the South and the North, but it wasn't enough. When Andrew
Jackson became President in 1929, the results were predictable.
Some acculturated Indians settled west of the Mississippi with
their slaves and avoided a showdown. The first decisive removal
to the west of the Mississippi was of the Choctaw 1831–1833, who
went acceptingly. The Chickasaw acceptingly removed 1837–
1847. When in 1838 soldiers collected uncooperative and unwit-
ting Cherokees house-by-house at bayonet point, plunderers gath-
ered the spoils like attendant vultures. Their forced migration
1838–1839 is the quintessential example of U.S. Indian removal
because it is a quintessential example of cruel totalitarianism by
white Americans done to red natives. Found among two of the
five tribes were hostile resisters who were hunted, corralled, and
shipped: Creeks in 1836 and Seminoles over the years 1935–1942
with such strife that the U.S. Government recruited Indian
warriors, to include Creeks at the time of their forced removal.
Seminole resistance was so effective over those years that the
conflict is called the Second Seminole War.
Cherokees, Chickasaws, Choctaws, and Creeks (let's call them

the Southernized Four) separately saw themselves as fully
sovereign nations commensurate to the Occidental paradigm. The
Seminoles, a Floridian tribespeople derived from Creeks who had
immigrated in the early and mid 18th century, apparently not slave
owners at the time, and from subsequent Indian refugees of
various Indian tribes, their Negro slaves, and runaway slaves, were
a people who saw themselves as sovereign at least. Not coinci-
dently, only the Cherokee had a constitutional form of government
before the removals dubbed the Trail of Tears. The 1827 achieve-
ment was seen threateningly by several State governments who
renewed and intensified their removal efforts accordingly. The
incontrovertible fact of the matter was that American Indians near
the fringe of white society did not have sovereignty, certainly not a
separate and pragmatic variety to be made equal. The United
States did not tolerate enclaves of British, French, or Spanish
sovereignty in their midst. States certainly were not going to
accept an intimacy with imitative upstart rivals. Acculturation
would not do because it was not assimilation. To expect that most
Indians could have and should have immediately acquired posi-
tions of privilege upon assimilation would have been foolish, and
to many reasonable white men, offensive. Cherokee known as
Oconaluftee Citizen Indians had integrated into white society and
were not subjected to forced removal. The Oconaluftee is a short
river in western North Carolina. It can be propitiously added that
free blacks were known to live in the antebellum South, albeit
unequally. Racist Southerners went beyond reasonable in their
assertions of superiority cultural and otherwise, of course. The
Treaty of Dancing Rabbit made in 1830 provided a means for
Choctaws who did not relocate westward to receive State citizen-
ship and an allotment of land with title, but most who stayed
became sharecroppers and laborers. The sharecropper strategy
would be repeated in the 1890s with the establishment of Jim
Crow segregation in the South on the heels of Reconstruction
(1865–1877). The Southern fraction of America's black popula-
tion would not drop below 80 percent until the 1920s. Meanwhile,
segregation was developing in the antebellum North and would be
a mature progenitor when South Carolina seceded in December
1860. In contrast many Sioux of Minnesota accepted land allot-
ments, clipped hair, and the white man's garb just before the Civil
War.
President Jackson acquiesced nationhood of Amerind tribes

enough only to proclaim sham treaties, the terms duly not honored
by the U.S. Government save for the removal part. State gover-
nors liberally applied discriminatory State laws to tribal lands and
the tribespeople on them. State courts would not recognize Indian
witnesses, but they would recognize bogus contracts and debts,
often contrived with some application of whiskey. Emboldened
whites defrauded, dispossessed, and abused the Indians to the
point of their starvation. The fact that the American public had to
be fooled by political artifice represents a positive advance in
culture and values. Napoleon, Chingis Khan, Motecuhzoma, and
whatever Amerind leaders cloaked by prehistory never created a
Whoops-I-Massacred-Your-Ancestral-Peoples Trust Fund vested
in perpetuity. A hereditary people entrusting the management of
56 million acres of land to Big Government is a foolish arrange-
ment for inescapable reasons known only to philosophers. Just
imagine the tempting hundreds of millions of dollars the Indian
trust funds could produce confidentially, if government money
laundering were legal of course. A report made for Congress circa
2007 by the Office of the Special Trustee for American Indians
had something less speculative to say:
Under current law, probates need to be administered for every
account with trust assets, even those 25,000 account holders with
balances between one cent and one dollar. The aggregate value of
these small balance accounts administered by [the Department of]
Interior is about $5,700, while the average cost for a probate
process exceeds $3,000. Even a streamlined process, costing as
little as $500 per probate, would require almost $10 million to
probate the combined $5,700 in those accounts.
Unlike most private trusts, which require the payment of
administrative costs from the trust corpus, the federal government
bears the entire cost of administering the Indian trust. As a result,
the usual incentives found in the commercial sector for reducing
the number of small or inactive accounts do not apply to the
Indian trust. Similarly, the United States cannot adopt many of
the tools that States and local government entities have for
ensuring that unclaimed or abandoned property is returned to
productive use within the local community.
It's time for the hereditary wards of America to become Ameri-
cans, to sink or swim like everybody without affirmative heredi-
tary action. The unidirectional charge of racism is a better
political tool than truth. Pure racism does not account for the
political corruption motivated by greed. For example, the

Cherokee were sitting on a gold mine, and the State of Georgia
made a point to take it in 1830. The unidirectional assertion of
racism, or greed as the case may be, neglects the adoption of the
white, Southern institutions like plantations and slavery by the
Southernized Four. Illustrative perhaps is the petition of Congress
on 21 March 1836 from Cherokee Coge-e-coy-hee requesting
‘remuneration for certain negroes forcibly taken from him by one
Joseph Brown.’ Many Indians fought on both sides of the Amer-
ican Civil War. Afterward the United States Government essen-
tially if not formally voided treaties with the Five Civilized Tribes
and forced the negotiation of new ones. The new terms appropri-
ated from the five tribes the western part of Indian Territory for the
settlement of additional tribes. The Southernized Four were addi-
tionally required not only to free their slaves but to grant them citi-
zenship. Most freedmen found themselves abandoned outside
tribal lands. Blacks in the form of Buffalo Soldiers would soon
descend banefully upon Indian Territory.
Indian autonomy represented to Americans a security risk
demonstrated by the Seven Years' War (1756–1763), the American
Revolution (1775–1783), and the War of 1812 (1812–1815).
Making sovereignty means retiring sovereignty. Making culture
means retiring culture. Perpetuation of a specific governance or
culture is not a right. Every day is a field test from Life. How do
you think the bonds of this one big humanity were made? and will
be made as we get closer, my friend? We are what we are, and our
pursuit of more is a pursuit of greater cooperative intimacy. The
retiring of sovereignty and culture and language will involve
breakage. Sometimes it's a good thing. It has been a good thing.
The fruit of European American conquest of a North American
land from sea to shining sea, and the Amerinds on it, has been only
a superlatively good and the greatest country in the history of
mankind. You won't have those results with just any management.
Every Indian of the New World, it seems, had no written
language representative of spoken language without an education
from whites. The bygone Mayans did have such a written
language, but their civilization had since been replaced by the
Aztec Empire. Aztecs painted mnemonic symbols on paper made
from bark as a way to supplement oral traditions. The Incas had
no writing. Spelled writing with sentence structure has a tremen-
dous advantage over hieroglyphics (and Eastern graph writing)
analogous to the advantage Arabic numerals have over Roman

numerals. (We have an advantage over Semitic languages like
Hebrew and Arabic that have decorative dots rather than vowels.
The enormity of our writing advantage should be cherished, but
our intelligentsia have established multicultural English brimming
with decorative doodads for the ‘correct’ English representation of
utterly foreign words.) The Aztecs to their credit used calendars
and were accomplished with astronomy. Metallurgy was known
only to the Incas and Aztecs, their subjects, and unconquered
peoples in between like the Tarascans, all of whom advanced no
farther than bronze. Despite capacities for cruelty and thirsts for
empire on par with the Spanish Conquistadors, metal for weaponry
had not advanced very far. Aztec swords were made from wooden
handles affixed with sharp obsidian, a volcanic glass. The Incas
had a bronze weapon, the wooden-handled club. The Spanish had
swords and mail of Toledo steel. Metallurgy had spread from the
Peruvian region to Mesoamerica circa 950 A.D. (perhaps 700 A.D.
for copper and 1200 A.D. for bronze). In the Aztec Empire, at
least, its main use was jewelry. Copper bells infiltrated native
cultures as far north as southern Arizona, but not the metallurgy
that made them. In all lands beyond central Mexico by a north-
ward egress, contemporary Amerindians thought of native copper
as an unusual stone that could be shaped and hardened by
pounding with another stone. When Columbus first arrived in the
New World, every native lived more or less in a Chalcolithic
manner at the twilight of the Stone Age, pretty much as their fore-
fathers had for the previous thousand years. Although horses had
lived in the ancient Americas, possibly hunted to extinction,
Amerinds did not ride them until the Spanish inadvertently made
their Spanish stock available. Eventually a feral population of
mustangs roamed the North American plains while another of
criollos ranged over the South American pampas. The classic
image of the North American Indian warrior riding on a horse was
made possible by white people.
Past imperial peoples like the Aztecs and Incas demonstrate
post-tribal achievement turned stagnation. Stagnation for
hundreds of years running indicates the embrace of suppressive
mores and culture rather than the unfortunate absence of human
discovery and innovation. Discovery threatens social order in
proportion to the extravagance of its peaked asymmetry. No, insti-
tuted symmetry is extravagance in the other direction. The Old
World has its historical counterparts. In the declining Egyptian

state of the early 16th century, a sultan ruled as the greatest of a
class of white Mamluks derived from alien slave stock methodi-
cally manumitted. The military elitists held a traditional inclina-
tion to the forceful and insolent ouster of any black slave warriors
who enjoyed the sultan's favor. Mamluks also had a cultural
disdain for firearms, the limited use of which was left to ‘inferior’
troops whether native, black, or otherwise foreign. The militaristic
Selim I became Sultan of the Ottoman Empire in 1512, and he
conquered the Mamluk Empire in 1517. Selim's army had made
expert use of firearms, naturally. The Ottomans were the only
contemporary Muslims who did. Still, the Ottoman Empire
prohibited the production of Arabic writing by printing press until
the 18th century. Perhaps the Aztecs had rejected the more
advanced writing system of the Mayans for analogous reasons.
A foreign steamship was barred from operating in China's Pearl
River near Canton as a passenger boat in 1835. The first railroad
from Shanghai to Woosung, within the Chinese Empire, was
dismantled in 1877 by order of the local mandarins. The remains
of the enterprise were left to decay on the beaches of Formosa, as a
political memento on the outskirts of China and within the purview
of Governor Ting Futai of Fujian (or Fuhkien) Province. He was
the first mandarin to have advocated railroads. On the site of the
former Shanghai station was built a temple to the Queen of
Heaven. China's first railroad had been built sneakily then stub-
bornly by European merchants, and the Chinese Government was
kind enough to buy it at cost. The cover of building a horse-drawn
tramway proved noteworthy. Chinese businessman Tong King-
sing, head of the China Merchants Steam Navigation Company,
superintended construction of an imperially sanctioned ‘tramway’
1880–1881 under the aegis of Viceroy Li Hung-chang of Hopeh
(or Chihli) Province, notwithstanding an imperial order to cease
construction of the locomotive. Chinese initiative was far more
palatable in China. Resistance from the reserved Imperial Govern-
ment was whittled away over the next score of years. By 1900 the
Chinese were competently managing railroad construction with a
few European engineers in their employ. Therein lies a lesson
about Westernization that applies to the Middle East.
More generally, social order is built on an infrastructure of tech-
nology inescapably defined by the adoption or rejection of new
technology. Since technological growth is naturally exponential,
nature judges us by our gains on a logarithmic scale. The British

Empire actually developed the world. The bungled transition of
international hegemony and financial stewardship to the United
States after the First World War was costly in more places than not.
The imitative American Indian nationhoods treated by the British
Empire, the United States, and Canada were the premature and
belated adoptions of a European paradigm of many interlocking
pieces that had been developed only over centuries.
The English, French, and Dutch made treaties with Indians
north of the Rio Grande. The Spanish, in a state of desperate
decline, made two treaties in June 1784 with Indians bordering on
the southern United States, apparently in the style of U.S.-Indian
treaties. The first treaty made was with the Creeks of western
Florida and the second was with the Alabamas, Chickasaws, and
Choctaws inhabiting, largely at least, areas within what are now
the States of Mississippi and Alabama. The Portuguese made
treaties of some sort and at some time with the Brazilian natives.
Whatever the treaty details were, the natives found themselves
enslaved by the Portuguese, sometimes via slave raids made
inland, in the 16th through 18th centuries. Mexican Government
from its beginning in 1821 resolutely did not accept a distinct
treatment of Indians. The Mexican revolution was started by a
parish priest and student of the French Enlightenment, Father
Miguel Hidalgo y Costilla. The principle of equality, such as it
was in nascent Mexico, meant institutional equality and consis-
tency: taxation, individual land ownership, non-Indian govern-
ment. Assimilation was violently opposed by Indians, and for the
next 90 years the government policy on Indian affairs was armed
force, exemplary colonization, and deportation. Meanwhile,
hacienda landlordism gained strength, reducing the majority of
Mexicans, whether mestizos of the dominant culture or Indians, to
debt peonage by the time the 20th century arrived. Mexico's
abject poverty was established. Given that the Indians of various
tribes had been 60 percent of the resident population when the
revolution began in 1810, and given that they were generally intent
on their autonomous ways of life, and certainly not the finer points
of the Enlightenment, another outcome is hard to imagine. At a
great price many Indians were assimilated and Mexican institu-
tions forged. The Federal Government began to recognize distinct
Indian needs in the 1920s, and in 1948 Mexico created the Insituto
Nacional Indigenista (INI) or National Indian Institute. The INI
was created as the Mexican affiliate to the Interamerican Indian

Institute for the ultimate goal of amicably integrating Mexican
Indians with the Mexican state. Good luck. I think the UN wants
to help. The usual portrayal from media and academia here in the
United States has tacitly been measured against prehistoric utopia.
Academia sustained by publication in the English language has
been remiss overall in conveying the American history of white-
Indian relations, to include the extent of treaties and trust funds, by
neglecting the Americas as a whole. The United States and
Canada may be the only nations to have established Amerind trust
funds or annuities, that keep going, and going, and going. Look
what British imperialism did! It seems likely that ‘First Nations’
have not been much recognized by treaty, wardship, or hereditary
privileges south of the Rio Grande.
English-thinking idealists tend to romantically project nation-
alisms in the semantics of English to the prehistoric Indians who
had none. They had Indian tribes, an Indian confederacy of tribes,
and a couple Indian empires that could have helped distraught do-
gooders eat their hearts out. The term Native Canadian is anachro-
nistic and literally silly. The term Native American allows for the
sensible denotation of (non-Nordic?) ethnicity native to the pre-
Columbian Americas, but since that's hardly consistent with the
elemental meaning of those words, and because the capitalization
of a first word is hardly adequate distinction in unbastardized
English, it suffers from the same foolishness. The meaningful and
incomparable definition beseeches an appropriate one-word term.
Amerind may offend for its reference to a people of no relation,
but nothing better has been offered. Amerinds are not and never
have considered themselves one monolithic people of the Amer-
icas unless as lobbyists, but the concept is nonetheless invaluable.
It allows me to identify a fallacious concept: Amerind Nation.
Never happened. Neither did a pan-African identity exist until
after European colonialism. Pan-African society? Never
happened. There is only one cultural identity corresponding to
race, though by endowment not dogma, and to a continental range
with any shred of institutionalized societal validity: Pan-Euro-
peanism. There's another important institutionalized pan-regional
identity, but one not fitting the condition of a single continent nor
of a single racial heritage.
Detractors of European-American males and their history have

the empty half of the glass down pat. The grotesque flaw of their
arguments and policies is that the benchmark for the white male of
European extract is make-believe utopia and nonexistent for
everyone else. Before America minted the Dream the utopian
glass was one-eighth full at best, or seven-eighths empty as in the
minimal degradation to be suffered in comparison to the affluent
heights of the Olympian whitey gods over and above mere subsis-
tence. I am supposing that the glass is half empty now. If
retarding technological advancement beyond the Stone Age is so
virtuous, keep yourself warm this winter with some animal skins
and any fire you can make by banging rocks. Whatever is our
genetic heritage, our cultural heritage, the one enabling our
freedom and prosperity, is predominantly British and undeniably
white European. The Enlightenment happened in Europe to the
benefit of all who will study and exemplify that philosophy. That's
what made the first Americans great. France can claim innovation
of the Enlightenment the theory as much as any country, but their
failed implementation led to Napoleon not Washington. As a
leading European nation, France had some of the best administra-
tors and entrepreneurs in the world. Entrepreneur is a French
word. France also carried a unique cultural foible, judging by the
nation's history. France certainly compares favorably to the peren-
nial Third World, steeped with those virtuous darlings! It would
behoove Americans to inexpensively learn the importance of func-
tion from the past because almost isn't good enough. Seeing the
streets strewn with the unlucky bowels of you, your family, or
your neighbors is the other way. Invariably, the bleeding hearts
supporting amnesty for illegals view anyone not ‘Native Amer-
ican’ as unfit to oppose. Can we dare go on with our lives when
the wrongs of the past can't be undone? Living with that burden-
some question must take inestimable courage.
The great thing about Napoleon was that he imposed a merit-
based command structure on the fresh ruins of heredity-based
society—or if you're a socialist, that he took from the rich and
gave to the poor. Merit-based autocracy was a provocatively
seminal paradigm, especially to Europeans. Le drapeau tricolore,
the flag of the French Revolution (1789–1799), then of the
Napoleonic Empire (1799–1814), equitably incorporated the red
and blue of Paris and the white of bygone French royalty. The
French flag happens to use the American colors down to the place-
ment of blue on the hoist side. The tricolor model and spirit has
since been adopted by the Belgians, the Chadians, the Irish, the
Italians, and the Ivoirians. The Nazi flag never caught on. Maybe
those French weren't half bad on implementation. The flags most
echoed, most profoundly eulogized, by nations of the world today
are the French, the American, the British, and the Arab Liberation
flags.
Eventually French supremacy on continental Europe was
successfully displaced by the empire built by the Kingdom of
Prussia. Militant ethnic supremacy was a feature of their German
culture that World War I with its armistice did not subdue. Is it
any wonder that the Master Race would see God's Chosen People
as an arch rival? “We desire to keep our people and our culture
pure and distinctive, just as the Jews have always demanded this of
themselves since the time of the prophet Ezra.” That sentiment
may not explain the lamp shade made with human skin by the wife
of a commandant at the Buchenwald death camp, nor the
shrunken-head paper weights found there. The grotesqueness and
deserved excoriation of German atrocities has blinded Westerners
to the threat of culture inherent in the conflict of cultures. “As I
see it, we are likely to make the mistake of blaming everything on
Hitler,” warned Joseph Pulitzer, a German American. “Hitler, at
the beginning, was the symptom of the German disease rather than
the disease itself. The disease had prevailed for some 75 years
from the days of Bismarck and earlier.” The fantastic thing about
the development of the Western world over the past 200 years has
been the shift of socioeconomic fundamentals from heredity to
merit. Monarchies and theocracies violate the merit principle.
Affirmative action violates the merit principal. Different citizen-
ship classes violate the merit principle. The U.S. Constitution says
in article 1, section 9, clause 7: “No title of nobility shall be
granted by the United States *x*x*.” American Indians who make
the heredity list get special treatment. Black Americans under the
banner of heredity victimization coerce special treatment. Puerto
Ricans are treated differently yet similarly. Chinese Americans,
Italian Americans, and Irish Americans thrive in America because
they are Americans all day long. There is a need to eliminate
(expel, convert, or desert) legalized intrasocial distinctions that
conflict with merit, especially those of heredity. Such class and
cultural differences will become more poignant, precarious, and
destructive as the world gets smaller. Mother Nature's choices to
which the victor must constrain the vanquished in order to finalize

victory are: convert, flee, or die. The relevance of the omelet is
not in the broken shells. Being the shining country on the hill, the
exemplary hope foreign peoples should be peaceably permitted to
adopt or decline like our Western standard of living, has its natural
requirements.
White guilt in Western society is a testament to the greatness of
the white man over the past 500 years, and the detached gluttony it
affords today. White guilt is proof of a superior capacity for
empathy and self-reflection, though it is misused. White guilt is
proof of excellent historical documentation superior in Western
accessibility if not truly superior in accountability to the world,
though it is misused. White guilt is proof of a noble heritage
unmatched, unappreciated, and in jeopardy of not blessing the
future. History is not proof that we must embrace everyone and
everything. History is proof that we must be willing to dispatch
some quantity of humanity to gain some quality of humanity. We
can contribute only by managing humankind better, not by
forsaking the job to be done worse. What unwestern, unwestern-
ized governance do you want running the world's economy?
Tribes-R-Us? This fire sale of all things Western is sold as the
absolutory purification of Western imperialism. Western imperi-
alism imposed from afar might have at times been better for the
locals than what the locals could have done for themselves. The
glass half empty beats seven-eighths empty. At this point I want to
note that the mental touchstone of the parochial, emotive masses
has traditionally been religion. The masses need simple mental
guidelines, you see, because they are parochial and emotive. In
the most dominant society of the past 500 years it has been Chris-
tianity in many variants that has provided that guidance. White
guilt issues forth from a moral and spiritual context, from calcula-
tion or fancy, from something that of late has quite successfully
vied for the parochial, emotive masses of the Western world.
Descendants of Native Americans live in this America now.
They have a vested interest as do all American citizens. We share
the jeopardy of national threats. Code-talking Indians served in
both World Wars. The Navajo code used in World War II was
never broken. I acknowledge the contributions of the Tuskegee
airmen too. If you want to feel pure despite the wrongs of history
we the living did not make, actually do something compensatory
of yourself. There's always losing your money at a tax-exempt
casino that sustains a heavy quota-driven employment of blacks, if

you can find one. Meanwhile, new history piles upon the old.
Repeating history as the dismantled indigenous society of North
America will cost you and the people counting on you dearly,
native. Unless you're shopping for something in a Mexican-
Islamic-tycoon fascism, I wouldn't hold too much stock in our
system's slated replacement. Capacity for judicious force is the
only investment worthy of your vitality.
6.5 White Men Wronged 257
6.5 White Men Wronged
What we are witnessing today in so many northern communities is

a sort of quasi-liberalism which is based on the principle of
looking sympathetically at all sides. It is a liberalism so bent on
seeing all sides, that it fails to become committed to either side.
—Rev. Martin Luther King, Jr.
We the Peoples of the United Nations *x*x*.
—Preamble of the Charter of the United Nations
I say men wronged because maternalism is destroying the great-

ness and goodness of American and Western cultures. As every
lovin' Western woman can tell you, right now cuddly polar bears
are adrift on melting chunks of ice. I have yet to see the world
memorial for the saber-toothed tiger who sacrificed his life—no,
her life—for the ascent of fire-using man. Maternalism works
well in the home on people under 10 years old. A woman's feel-
ings are not bigger than reality itself, even with ownership of
vaginal reality. What kind of world would it be if women ran it?
Warm, fuzzy national borders; warm, fuzzy welfare programs;
warm, fuzzy environmental chastity; warm, fuzzy news coverage;
warm, fuzzy office politics; warm, fuzzy diplomacy; warm, fuzzy
military objectives—it would be the America and the Western
world we have now. A place where English-speaking people
declare that problems and problematic people ‘need to’ uncharac-
teristically and unforcedly solve themselves. A place where
English-speaking people end their statements of fact with the pitch
inflection of a question? Feminists have taught us to query for social
affirmation of our ideas and ourselves, to build a consensus of
feelings and the universal good incarnate. “If only women ran the
world,” broads of the United States Congress say. So that's why I
say, “White Men Wronged.” The funny thing is that Western
women are not technically the driving force of Western decline,
only the overwrought means. Common feminism is a cultural HIV
(human immunodeficiency virus).
I preface the central social analysis with a philosophical anal-
ysis on the reflective symmetry between slavery and charity.
Slavery is nonvoluntary work directed for the benefit of others;
charity is voluntary work directed for the benefit of others.
Slavery in a mild form is essentially duty; charity in an extrava-
gant form is essentially delinquency. The quality of a people and

their welfare suffer to the extent that autonomy is supplanted by
deference, regardless of the perception of the chronic giver. A tool
is a tool. If it were not so, the conditions of slavery and prosperity
would simply owe to one's state of mind. Propaganda would be
emancipation: war would be peace, freedom would be slavery,
ignorance would be strength. Temporary charity is quite distinct
from permanent charity. Something survives in this world only if
it is viable. A species distinguished by children that rely perma-
nently on their parents, though the mothers are blissful, does not
constitute a viable species. Charity is not charity without transi-
tional wishes; it is socialism; it is institutionalized inadequacy; it is
widely destructive. Voluntary charity is quite distinct from the
shades of coerced charity (e.g. government foreign aid). A species
distinguished by a preference for cannibalism, though every
member is fully obliged to the common good, does not constitute a
viable species. Charity is not charity with directive from the
government; it is fascism; it is institutionalized subjugation; it is
charity training, for slavery. One-time private aid for victims of a
tsunami, good. One-time public aid might be an appropriate
gesture of good will if not of international friendship. Perennial
private aid for the same failed, hungry foreign communities, good
enough because the action's vitality is dissipated before becoming
perverted. Perennial public aid for the same failed, hungry foreign
communities, bad. A slave that knows she's a slave is wiser than
an incessantly penitent volunteer. Ignorance is bliss, do you want
the red pill?
As I alluded in subchapter 5.4, “The Oil Industry,” my visit on
10 April 2008 to the website of the Organization of the Petroleum
Exporting Countries (OPEC) found global information about envi-
ronmental activism to include that published in the OPEC Quar-
terly Environmental Newsletter. On page 3 of the newsletter issue
dated the fourth quarter 2007, I read ‘so-called Major Economies’
as in: “The so-called Major Economies of the world are also the
biggest carbon dioxide emitters: the US, China, EU-25, Russia,
India, Japan, Brazil, Canada, Mexico, Indonesia, South Korea,
Australia and South Africa.” I asked myself, sour grapes? If so,
what kind? There in the OPEC Web pages was Kyoto this and
Kyoto that. I decided to investigate what the Kyoto Treaty was for
myself.
My browser found itself at the website of the United Nations

Framework Convention on Climate Change (UNFCCC). I down-
loaded some Web pages and documents (PDF files) for study later
that day at my apartment. I was doing my research on the Internet
from the library. The sketchy background details began to emerge,
but I will just give it to you better than I understood it then. The
Kyoto Treaty is officially referred to as the Kyoto Protocol. Fortu-
nately, the terminology used to describe its ratification status is
explained by the United Nations' (UN's) Treaty Reference Guide.
The complete name for the treaty is the Kyoto Protocol to the
United Nations Framework Convention on Climate Change, and
it's original form was adopted by the third session of the Confer-
ence of the Parties (COP 3) to the UNFCCC on 11 December
2007. At their Headquarters in New York the UN accepted signa-
tures from nation parties from 16 March 1998 through 15 March
1999. The next day 16 March 1999 the UN began accepting
deposits of instruments of ratification, ‘accession’, or the like from
nation parties. Following the directive of President Bill Clinton,
Acting (Deputy) U.S. Ambassador to the United Nations Peter
Burleigh signed the treaty on 12 November 1998. A signature is
clearly distinct from ratification according the the Constitution of
the United States of America and the Kyoto Protocol. In fact,
signatures made during the 1998–1999 period were not and are not
requisite for accession to the treaty, but the first signatures date the
treaty. The Kyoto Treaty (1998) represents a commitment among
nations having developed from a declaration among nations known
as the United Nations Framework Convention on Climate Change
(1992). The signatories of the Framework Convention are the
Parties to the Convention that may become Parties to the Kyoto
Protocol.
The first document I studied later that day was the Kyoto
Protocol (1998), naturally enough. Article 1 defines some defini-
tions and invokes the definitions of the Convention (1992), a docu-
ment I did not get until the next day. I didn't have an Internet
connection at home. Item 7 of article 1 refers to parties in Annex I
of the Convention. Throughout the treaty, stipulations and require-
ments are detailed for Annex I Parties. Annex I Parties must each
limit the emissions of green house gases listed in Annex A of the
treaty by enhancing the socioeconomic infrastructural systems to
include the energy, industrial processes, solvent and other product
use, agriculture, and waste as specified in the same Annex A. The
emission limit is specified in Annex B of the treaty for each

country as a percentage of that country's base emissions, the emis-
sion levels of a base year. The treaty defines how the base emis-
sions are determined but does not declare the base emissions
themselves. The nations listed in Annex B are largely white
Western nations, every leading one and most others. Belarus was
added in November 2006 to Annex B pending acceptance still not
finalized in April 2008. Not included were Albania, Andorra,
Bosnia and Herzegovina, Macedonia, Malta, Moldova,
Montenegro, and Serbia. Greenland is apparently including itself
via Denmark. Throw in the white, Slavic as in lineally European
nation Russia and the convincingly Westernized Japan and you
have the complete lineup. The Protocol allows Annex B nations to
supplement their failed emission reductions with emission reduc-
tion units bought from the surplus shortfalls of other Annex B
nations.
The second document I studied was Joanna Depledge, Tracing
the Origins of the Kyoto Protocol: An Article-by-Article Textual
History, a technical paper prepared under contract to the
UNFCCC, dated August 1999/August 2000. A third and final
document completes the set, but it received no more attention
other than a quick assessment sufficient to dismiss its tedious
contents. Tracing the Origins reproduces at the end of its Annex II
the original Protocol's Annexes A and B, albeit with annotative
formatting. The part I found most interesting was Annex III,
“Proposals from Parties.” The annex is a table of developmental
proposals ordered alphabetically by proposing party. Many of the
parties listed in Annex III are not listed in Annex B. Some were
OPEC nations and many were not. What caught my attention late
that night was the entity ‘Group of 77 and China’. The other inter-
esting entity was ‘AOSIS (Trinidad and Tobago)’, but I mistakenly
thought AOSIS was merely a reference to Trinidad and Tobago. I
already had a full list of research topics for the next day. Another
visit to the UNFCCC website for the Convention was in order.
Information about the World Meteorological Organization,
mentioned in article 1 of the Kyoto Protocol, was another item.
There was the U.S. status with the Kyoto Protocol, the non-Annex
I nations, and the emission reduction units that looked like the
‘carbon credits’ talk-radio pundits occasionally decried.
So the next day I got a copy of the Convention, and I learned

the United States had signed but not ratified the Kyoto Treaty. The
UNFCCC was working on a global exchange for emission units,
and the house always makes money with a deal like that. The
World Meteorological Organization (WMO) was another UN
group—not a new player. Up to this point I still didn't know why
OPEC would concern itself with climate change and the vilifica-
tion of oil. The Group of 77 website (www.g77.org) took care of
that.
According to the ‘about’ Web page, the Group of 77 (G-77) was
established on 15 June 1964 by 77 developing countries partici-
pating in the UN Conference on Trade and Development
(UNCTAD) who united as signatories of the Joint Declaration of
the Seventy-Seven Countries. The G-77 has added members
since, but the name has been kept. The text of the declaration was
available on the website. After the title and list of signatory
nations, the text body started in paragraph 1 like this: “The devel-
oping countries named above recognize the United Nations
Conference on Trade and Development as a significant step
towards creating a new and just world economic order.” President
George H. W. Bush shared in his last State of the Union message
of 29 January 1991 how he envisioned a ‘new world order’, nearly
27 years later. The final paragraph 10 of the Joint Declaration in
its entirety read, except for my insertion of brackets with a space:
The United Nations Conference on Trade and Development marks
the beginning of a[ ]new era in the evolution of international co-
operation in the field of trade and development. Such co-opera-
tion must serve as a decisive instrument for ending the division of
the world into areas of affluence and intolerable poverty. This
task is the outstanding challenge of our times. The injustice and
neglect of centuries need to be redressed. The developing coun-
tries are united in their resolve to continue to quest for such
redress and look to the entire international community for under-
standing and support in this endeavour.
The next document chronologically on the G-77 Web site was
the Charter of Algiers, 10–25 October 1967. Part 1, section III in
part read, but here with two paragraph breaks removed:
Developing countries reiterate that the primary responsibility for
their development rests on them. Developing countries are deter-
mined to contribute to one another's development. However, a
fuller mobilization and more effective utilization of domestic

resources of developing countries is possible only with concomi-
tant and effective international action.
As you can see, the terms ‘developed’ and ‘developing’ are
quite important to the New World Order. I used the stem ‘develop’
to search through the UN Framework Convention on Climate
Change (1992) in PDF format. The text I found most insightful
from the search is article 4, paragraph 1, section (c), on page 5 and
article 4, paragraphs 3–5 on page 8. The text of paragraph 3 is
sufficient to make the point:
The developed country Parties and other developed Parties
included in Annex II shall provide new and additional financial
resources to meet the agreed full costs incurred by developing
country Parties in complying with their obligations under Article
12, paragraph 1. They shall also provide such financial resources,
including for the transfer of technology, needed by the developing
country Parties to meet the agreed full incremental costs of imple-
menting measures that are covered by paragraph 1 of this Article
and that are agreed between a developing country Party and the
international entity or entities referred to in Article 11, in accor-
dance with that Article. The implementation of these commit-
ments shall take into account the need for adequacy and
predictability in the flow of funds and the importance of appro-
priate burden sharing among the developed country Parties.
The Group of 77 wants us to give them our technology and needs a
ruse to deserve it. The ruse uses traditional Western foibles to
manipulate Western strength against itself and to finance a squeaky
clean industrial revolution for a ‘developing’ world that has yet to
pay the requisite price of psychological and cultural development.
Brilliant.
I was astounded by what I had discovered on 11 April 2008. A
mere two days of work was sufficient to uncover this blatant
global scam. What is Western media doing? What are rank-and-
file Westerners doing? A day later I first heard a radio commercial
for ‘Pittsburgh's first green Earth Day event’ to be held Saturday
the 19th. I looked at the friendly Calendar of Environment-
Related Events from the OPEC Web site and saw that Pittsburgh
was scheduled to host 5–8 May the 7th Annual Conference on
Carbon Capture and Sequestration. Conference with theme:
Addressing the Knowledge, Policy, Regulatory & Technology
Gaps to Expedite CCS Deployment. No place to hide in this
Western world.
I listen to talk radio, and it occurred to me after my finding that

I had heard something about this before. As I recall, a guest host
on one of the major talk radio programs had said the Global
Warming issue was to allow developing nations to ‘catch up’. He
made reference to the Group of 77 only enough to say it was
something listeners could investigate for themselves. I didn't. I
had my hands full trying to finish this book and was not about to
add another topic. If it was not for the fact that Western reliance
on the world oil industry was manipulated by the biggest adver-
tising campaign in world history, I would not have needed to know
this topic to finish subchapter 5.4, “The Oil Industry,” and this
subchapter would not have become an ambition.
I wanted to know what AOSIS was about, remember? I visited
with my browser, actually the library's browser, the Web portal
(www.sidsnet.org/aosis) of the Alliance of Small Island States
(AOSIS) on 15 April 2008. AOSIS described itself to be ‘a coali-
tion of small island and low-lying coastal countries’ concerned
about the environment and their particular vulnerability to climate
change. Further, they were functioning as a lobbying group for the
Small Island Developing States (SIDS) ‘within the United Nations
system.’ Available via the Web portal was the Report of the Inter-
national Meeting to Review the Implementation of the Programme
of Action for the Sustainable Development of Small Island Devel-
oping States, Port Louis, Mauritius, 10–14 January 2005, United
Nations, New York, 2005. Participants at the meeting adopted two
resolutions the Mauritius Declaration and the Mauritius Strategy,
both contained in the report. The Mauritius Strategy, chapter XX,
“Implementation,” subchapter A, “Access to and the provision of
financial resources,” paragraph 88, subparagraph (e) urges devel-
oped countries that have not met the official development assis-
tance (ODA) target of 0.7 percent of gross national product (GNP)
to ‘make concrete efforts.’ Seven-tenths percent of GNP of devel-
oped nations in 2005 is undoubtedly more in real terms than what
1 percent was in 1964. According to the Charter of Algiers (1967)
from the G-77 website, 1 percent was the assistance target adopted
by the United Nations Conference on Trade and Development
(UNCTAD) at its first session in 1964, but as a percentage of
national income. The Algiers charter further states the assistance
amounted to 0.87 percent of GNP in 1961 and 0.62 percent in
1966. The insufficient assistance of the evil West goes way back.
The World Council of Churches petitioned the United Nations in
1958 for rich nations to have a target of 1 percent of national

income given as grants and concessional loans to developing coun-
tries. The UN General Assembly agreed to the principle in 1961.
The global bureaucracy that emerged from the non-fictional
trilogy World War I, the Great Depression, World War II—the
United Nations, International Monetary Fund (IMF), the World
Bank, and the Organisation for European Economic Co-operation
(OEEC), in 1961 renamed the Organisation for Economic Co-
operation and Development (OECD)—was established to rebuild
and protect the global economy. Both capitalist and socialist
philosophies were represented in this World Deal protectorate.
Socialism, the theory of which rewards coarse failure and fine
success equally, is more admissive and expandable than capi-
talism, precisely because it has no aversion to malignant gain. The
World Deal government protects ‘our’ economy about as well as
the U.S. Federal Reserve System and U.S. Social Security.
Compensatory programs have been subsidized by evil Westerner
workers with too much—character. U.S. Government grants and
credits to foreigners are now regularly over $20 billion a year. If
this bureaucracy disconnects the results of individuals, nations,
and cultures from their performances, up is down and failure is
success. On this scale the cultural and economic destruction
would be immense.
The name change from OEEC to OECD effective September
1961 reflected a change in mission. The Development Assistance
Group (DAG) within the OEEC simultaneously changed its name
to the Development Assistance Committee (DAC). Only in March
1961 had the DAG resolved to intensify and expand aid from just
loans on commercial terms to more favorable loans and most
favorable donations. In September 1962 the DAC published the
first DAC Chairman's report. One of the recommendations of that
report read:
The effort being made by Members of the Committee to aid
under-developed countries is substantial and growing. While it is
difficult to measure quantitatively the overall needs of the less-
developed countries for external finance, it is clear that these
needs exceed the present flow of resources and that they are
steadily growing. It is important, therefore, that the more
advanced countries should not relax their efforts to expand the
flow of development assistance within the scope of their economic
and budgetary capacity. Fresh initiatives should be taken to
secure public support for expanding developing aid programmes.
In 1969 the DAC adopted the term ODA, reckoned as a percentage

of GNP, and in the following year the UN declared an ODA target
of 0.7 percent.
In 2006 Al Gore used the release of the movie An Inconvenient
Truth to put the global warming hoax into the media spotlight. He
is a mask; nine out of 10 polar bears agree. Practitioners of infe-
rior cultures have programmed members of preeminent white
culture to believe the values of white heritage are inferior and
shameful. Freud called the psychological aspect of that behavior
projection. The strategic aspect is combat. Environmentalism is
to energy and taxation as civil rights are to family, parenthood, and
government assistance as multiculturalism is to education, reli-
gion, banking, and immigration. The goal is to cannibalize the
West and subsidize the less. Providing abettal from the world's
greatest institutional bosom, American women's suffrage has been
a disaster. The suffragettes cut their political teeth siding with reli-
giose moralists, flapped for the most costly private shopping spree
in world history, and sent the calamitous bill to Washington.
Payment of that bill directed the craftsmanship of Franklin
Roosevelt, and the modern Democratic Party was born. The
American woman redefined liberalism well before the American
man, first as a flower child, fully repudiated male political hege-
mony by exchanging sociocultural accountability for sex and
drugs, well before the aged, baby-boomed gratifier and her
malcontent spawn redefined marriage to appease the American
homosexual. The First World standards of personal involvement
have been breached by substitution of the feminist standards of
personal absorption: feminist charity, feminist compassion, femi-
nist justice.
That is how, in the greatest country on earth, moreover in the
world's greatest civilization, the man for all seasons died. Femi-
nistic, effeminate, and feminized voters, generally being emotional
invalids, cannot accept a society or world touched by suffering or
need, which is tantamount to a block of voters rejecting for us all
this mortal existence with no plan B. Misguided Western femi-
nists, fearful of contact with liberated masculinity, agog for refuge
in sexual segregation, find affinity with animal lovers, who protect
the pool of safe pet stand-ins, with homosexuals, some of whom
assault the trans-generational warp of fabulously fabricative
Western culture, and with orthodox Muslim men, who vehemently
oppose the contagion of liberated womanhood from the House of
War (dār al-harb). As long as human security requires mastery of

force and human continuity requires maternal indulgence, human
freedom shall require male preponderance of, by, and for the
people. White men, Western men, westernized men, pick up your
balls!
6.6 Choosing Absolutists 267
6.6 Choosing Absolutists
The five countries—China, France, the Soviet Union, the United

Kingdom, and the United States—accounted for 78 percent of all
arms transfers to the Middle East in 1985–1989 *x*x*. They are
also the permanent members of the United Nations Security
Council and the world's only declared nuclear-weapon states.
—World Military Expenditures and Arms Transfers 1990
The 1998 resolution of the “Rushdie affair” to Britain's
satisfaction sparked improvement in its relations with Iran. Iran
maintains that Ayatollah Khomeini's 1989 death sentence against
author Salman Rushdie cannot be revoked (his “Satanic Verses”
novel was labeled blasphemous) because Khomeini is no longer
alive to revoke it. On September 24, 1998, Iran's Foreign
Minister pledged to Britain that Iran would not seek to implement
the sentence and opposed any bounties offered for his death.
Britain then upgraded relations with Iran to the ambassadorial
level. Some Iranian clerics (outside the formal government
structure) have said the death sentence stands, and the Iranian
government has not required the Fifteen Khordad foundation to
withdraw its $2.8 million reward for Rushdie's death. [President]
Khatemi said on June 4, 2001 that he considers the issue closed.
In October 2000, Britain began extending longer term credit (two
years or greater) for exports to Iran.
—Kenneth Katzman, Specialist in Middle Eastern Affairs
Western policy has elevated the orthogonal, archaic social values

of the Middle East to the international level for the oil, but the
party is over. The fundamentalist values correspond to a stage in
western social development from centuries ago when daily
survival was not granted. Sure enough, it still works that way. By
embracing the factions du jour, we enmesh ourselves in sectarian
rifts. U.S. foreign policy in the Middle East—the official and the
covert as we may discern—has plied, violated, and inflamed
factional boundaries to the point of reversing course with Saddam
Hussein, the warlords of Somalia, and circumstantially at least,
Osama bin Laden.
Sectarian-factional boundaries are antagonistic to stability in the
Middle East and now the whole world. Our economic relations
have so escalated the strife. Oil riches require little more claim,
sophistication, growth, and community than land occupation. The
untempered power of oil is monumental, tenuous, onerous, and
volatile. It's social signature is pubescent turmoil. Consider the

percentages of revenue derived from petroleum oil and natural gas
for the governments listed in table 6.2.
Table 6.2 Central/Provincial Government Revenue Percentage
from Oil and Gas
Alberta Bahrain Iran Kuwait Libya Qatar Saudi United
Year (Canada) Arabia Arab
Emirates
2003 35 74 61 77 87 64 83 80
2004 33 74 62 77 86 61 84 77
2005 37 75 66 79 93 62 91 78
2006 44 77 66 79 93 63 91 76
The U.S. consumes 24 percent (and dropping) of the world's 85
million petroleum barrels a day and has just less than 5 percent
(and not increasing) of the world's population. In absolute terms
U.S. consumption has remained nearly flat while the world's
consumption has grown, causing the U.S share of petroleum to
steadily decline, as shown in figures 6.1 and 6.2. Table 6.3
compares the oil-consuming lifestyles of all nations to have
consumed on average, after rounding, 2.0 million or more barrels
per day in 2004. A mere 2 billion up-and-comers in Asia don't use
a tenth of what we Americans do—yet. Did I mention we are 300
million?
Figure 6.1 U.S. and World Petroleum Consumption
90
Millions of Barrels Per Day
80 ption
d Consum
70 Worl
60
50
40
30
U.S. Consumption
20
10
0
0
6
197
197
197
197
198
198
198
199
199
199
200
200
200
Years
Figure 6.2 U.S. Percentage of World Petroleum Consumption

35%
30%
25%
Percentage
20%
15%
10%
5%
0%
0
6
197
197
197
197
198
198
198
199
199
199
200
200
200
Years
Table 6.3 Year 2004 Petroleum Oil Consumption by Nation

Country World Million Population BBL/D Lifestyle
Rank BBL/D per Factor
Capita
Canada 7 2.3 32,507,874 0.071 5.5
United States 1 20.7 293,027,571 0.071 5.5
South Korea 8 2.2 48,598,175 0.044 3.4
Japan 3 5.3 127,333,002 0.042 3.2
France 10 2.0 60,424,213 0.033 2.6
Germany 5 2.7 82,424,609 0.032 2.5
Russia 4 2.8 143,782,338 0.019 1.5
Mexico 11 2.0 104,959,594 0.019 1.5
WORLD — 82.4 6,379,157,361 0.013 1
Brazil 9 2.1 184,101,109 0.012 0.9
China 2 6.4 1,298,847,624 0.005 0.4
India 6 2.4 1,065,070,607 0.002 0.2
In 2006 the Middle Eastern countries of Bahrain, Iran, Iraq,
Kuwait, Qatar, Saudi Arabia, and United Arab Emirates supplied
2,211,000 of the 20,687,000 barrels consumed each day in the
United States, figuring as 11 percent. Our economies share a one-
dimensional, symbiotic, hotly contested house of cards. So how
does Superman hold up Lois Lane?
Table 6.4 U.S.-Middle East Time Line

Date Description
1953 “The United States was an ally of the late Shah of
Iran, Mohammad Reza Pahlavi (“the Shah”), who
ruled from 1941 until his ouster in February
1979. The Shah assumed the throne when Britain
and Russia forced his father, Reza Shah Pahlavi
(Reza Shah), from power because of his
perceived alignment with Germany in World War
II. Reza Shah had assumed power in 1921 when,
as an officer in Iran's only military force, the
Cossack Brigade, he launched a coup against the
government of the Qajar Dynasty.
“The Shah was anti-Communist, and the
United States viewed his government as a
bulwark against the expansion of Soviet influ-
ence in the Persian Gulf. In 1951, he appointed a
popular nationalist parliamentarian, Dr. Moham-
mad Mossadeq, as Prime Minister. Mossadeq
was widely considered left-leaning, and the
United States was wary of his policies, which
included his drive for nationalization of the oil
industry. Mossadeq's followers began an
uprising in August 1953 when the Shah tried to
dismiss Mossadeq, and the Shah fled. The Shah
was restored in a CIA-supported coup that year,
and Mossadeq was arrested.”
1960s “Select junior officers in Iraq's armed forces trav-
eled overseas for [chemical and biological
warfare] CBW training, among them Lt. Nizar Al
Attar, who attended the CBW courses at Fort
McClellan in the US and was later to head Iraq's
CW program and introduce BW to Al Muthanna
State Establishment (MSE).”
1980 The Iran-Iraq War of 1980–1988 begins.
Table 6.4 (continued) U.S.-Middle East Time Line

Date Description
1983 “A militarily relevant BW program restarted at
the Chemical Weapon (CW) facility at Al
Muthanna. UN inspectors were told that the
initiative for this came from the Director General
(DG) of Al Muthanna, Lt. Gen. Nizar Al Attar,
who then received endorsement from the
Minister of Defense. The Iraq Survey Group
(ISG) of the U.S. Coalition has been unable to
establish the veracity of this story, although it is
apparent that a BW program started there in 1984
under the auspices of the [Minister of Defense]
MOD, funded by the State Organization for Tech-
nical Industries (SOTI), and headed at the
research level by a new recruit, Dr. Rihab. Her
direction, at least at the working level, was at this
time given by Lt. Gen. Nizar who instructed her
that he ‘did not want research to put on a shelf.
He wanted applied research to put in a bomb.’”
August 1985– The U.S. Government facilitated the sale of
October 1986 missiles and spare parts to the Government of
Iran, apparently for the release of American
hostages in Lebanon.
April 1986 The Senate Subcommittee on Terrorism,
Narcotics and International Operations of the
Committee on Foreign Relations opened an
investigation that focused on allegations drug
money was being used to fund Contra operations.
No other government investigation will equally
address the drug trafficking aspect.
November 1986 U.S. Attorney General Edwin Meese announced
that proceeds from the sale of arms to Iran had
been diverted to the Contras at a time when U.S.
aid to the Contras was prohibited by federal law.
19 December 1986 The Special Division of the United States Court
of Appeals for the District of Columbia Circuit
appointed Lawrence E. Walsh as Independent
Counsel and charged him with investigating the
Iran-Contra affair. An investigator subjectively
described interest in the drug trafficking aspect as
one percent of overall interest.
Table 6.4 (continued) U.S.-Middle East Time Line

Date Description
1 September 1987 Director of Central Intelligence (DCI) William
Webster appointed a Special Counsel to review
the results of the CIA Office of the Inspector
General (OIG) inquiries and make recommenda-
tions for administrative action. The OIG had
conducted four investigations of Iran-Contra
activities, but none included the issue of drug
trafficking related to the Contras. The Special
Counsel issued a Report on 15 December 1987.
According to the following excerpts from a CIA recap, the
Senate Subcommittee report of the Iran-Contra affair found:
• Individuals who provided support for the Contras were involved
in drug trafficking, the supply network of the Contras was used by
drug trafficking organizations, and elements of the Contras know-
ingly received financial and material assistance from drug traffick-
ers. In each case, one or another U.S. Government agency had
information regarding these matters either while they were occur-
ring, or immediately thereafter.
• Payments to drug traffickers by the U.S. Department of State of
funds authorized by the Congress for humanitarian assistance to
the Contras, in some cases after the traffickers had been indicted
by federal law enforcement agencies on drug charges, in others
while the traffickers were under investigation by those agencies.
The same CIA recap cited the Senate Subcommittee to have noted:
*x*x* despite widespread trafficking through the war zones of
northern Costa Rica, [the Subcommittee was] unable to find a
single case which was made on the basis of a tip or report by an
official of a U.S. intelligence agency. This despite an executive
order requiring intelligence agencies to report trafficking to law
enforcement officials and despite direct testimony that trafficking
on the Southern Front was reported to CIA officials.
Excerpts from the final Independent Counsel report read:
• The President's most senior advisers and the Cabinet members on
the National Security Council participated in the strategy to make
National Security staff members McFarlane, Poindexter and North
the scapegoats whose sacrifice would protect the Reagan Admin-
istration in its final two years. In an important sense, this strategy
succeeded. Independent Counsel discovered much of the best
evidence of the cover-up in the final year of active investigation,
too late for most prosecutions.
• Director Casey's unswerving support of President Reagan's contra

policies and of the Iran arms sales encouraged some CIA officials
to go beyond legal restrictions in both operations. Casey was
instrumental in pairing North with Secord as a contra-support
team when the Boland Amendment in October 1984 forced the
CIA to refrain from direct or indirect aid. He also supported the
North-Secord combination in the Iran arms sales, despite deep
reservations about Secord within the CIA hierarchy.
The CIA World Factbook 2006 says of Brazil, “highly unequal
income distribution remains a pressing problem.” Why does U.S.
leadership with support from the CIA aggravate pressing problems
of social and economic inequality that hurt numerous Americans
and foreigners alike? Foreign and domestic U.S. policy has been
eroding our country for a plutocratic few. “America's chicke-n-s
are coming h-o-m-e—to r-o-o-st!” Though said by Reverend
Jeremiah Wright, Jr. a few days after 11 September 2001 to mock a
confirmatory caricature of white establishment, the chickens had
indeed come home and not to crap precisely on bygone oil execu-
tives, overpaid military contractors, etc. and their sycophantic
politicians. The prodigal, monopolistic riches of oil, recreational
drugs, and disfranchised labor have facilitated social behaviors,
nostrums, constructs, and values below our current living stan-
dards. Likewise, foreigners are distracted from the consequences
of their low standards That's the problem!
As I described earlier, American labor is being exploited by
government deficit spending, worker imports, healthcare, oil-
dependence, litigation, and taxation. Employers are rewarded not
penalized for employment of illegal aliens. Since the Immigration
Reform and Control Act of 1986, the illegal alien population has
tripled. The borders are intentionally porous. Why else would the
109th Congress (in Senate bill 2611) suggest a requirement of
consultation with Mexican authorities about border security?
Perhaps because most illegal aliens in the United States are Mexi-
cans. Illegal alien labor and illicit drugs are big money. American
labor can't simply escape this assault by joining the corrupt plutoc-
racy because prosperity requires honest labor in the majority.
The U.S. Government provides preferential aid to Israel
including billions in military assistance. The Foreign Operations,
Export Financing, and Related Programs Appropriations Act, 2006
was signed by the President on 14 November 2005. It required
Israel receive $2.28 billion of military aid not more than 30 days
later. Egypt received $1.3 billion and Jordan $210 million in mili-
tary aid but without a 30 day provision. According to news of 5

August 2006, Egyptian militant group al-Jamaa Islamiya had
apparently joined al Qaeda after a long cessation of violence.
Thousands of its members, reportedly renouncing violence, were
released from Egyptian jails in 2003. Another 900 were released
in April 2006. Al-Jamaa Islamiya helped assassinate Anwar Sadat.
Our same U.S. Government ensures an American oil addiction
grossing over $100 million a day to Arab regimes.19 We further
immerse ourselves with military and covert operations. Consider
President Bush putting an Islamic state on the path to democracy.
Moron or oxymoron? Islam is absolute and requires struggle
against non-Islamic teachings—most notably against the pillar of
Western democracy and prosperity ‘human rights’. Not surpris-
ingly, apostasy is a crime punishable by death in a country the
State Department dubs the ‘Islamic Republic of Afghanistan’.
Democracy is just not for everyone; the onus is properly on the
subjugated to deserve self-government.
The southward Americas is another regional theater of power
and poverty exacerbated by U.S. policies to the disadvantage of
most. Our border is open to their drugs and their poverty. The
CIA is alleged to participate in the drug trade. What don't we
know? Legions of laborers may find relief and opportunity in their
migration to the United States, but so too do the southward auto-
crats who oppress and exploit that labor pool. Pressures of revolu-
tion defer there while pressures of unsustainable labor imports tear
the social fabric here. Countries of liberty ultimately have been
and will be established and maintained from within ‘of the people,
by the people, for the people.’ We might keep our sleeves rolled
up at home.
Time and again U.S. foreign policy has made dubious alliances
of short-sighted merit, if any merit at all. Support of any theocracy
is fundamentalist and fundamentally flawed, even an alleged
democracy of whatever supreme religion. Support of any chaotic
social order works the same way. Such alliances are inherently
unstable because so are such partners. As if that wasn't stupid
enough, we are increasingly vulnerable to Mideast hostilities
swollen by our indiscriminate infusion of resources and resent-
ments.
19 Multiplya formerly conservative $50 a barrel price on crude with the

2,211,000 barrels given earlier.
U.S. support of a government (or any militant group of a

conviction) that is not democratic, secular, and steeped in human
rights is just plain wrong. Yes, the international community can't
be avoided, especially concerning economics. Many established
countries are not going to do things our way. Generally, that's a
good thing—like having partnership standards. The U.S. Constitu-
tion has a separation of powers for a reason; however, quality of
power will always be the superior consideration.
6.7 Federal Money Laundering
No money shall be drawn from the treasury, but in consequence of

appropriations made by law; and a regular statement and account
of the receipts and expenditures of all public money shall be
published from time to time.
—U.S. Constitution
The basis of our governments being the opinion of the people, the
very first object should be to keep that right; and were it left to me
to decide whether we should have a government without
newspapers or newspapers without a government, I should not
hesitate a moment to prefer the latter.
—Thomas Jefferson (1743–1826), third U.S. president-to-be
On 26 July 1947 the crucible of World War II was hardly over and
the Cold War hardly begun. That day President Truman signed the
National Security Act of 1947 (NSA) to provide a comprehensive
program for national security. This act created the National Mili-
tary Establishment with a presiding Secretary of Defense, the
National Security Council (NSC) headed by the President, and
within that Council the Central Intelligence Agency (CIA).
The stated purpose of the NSC was ‘to advise the President with
respect to the integration of domestic, foreign, and military poli-
cies relating to the national security so as to enable the military
services and the other departments and agencies of the Govern-
ment to cooperate more effectively in matters involving the
national security.’ The described role is completely informational
in nature. Shortly thereafter is a potential exception worded ‘in
addition to performing such other functions as the President may
direct.’
The CIA replaced the National Intelligence Authority and was
charged ‘the purpose of coordinating the intelligence activities of
the several Government departments and agencies in the interest of
national security.’ Again, it was a completely informational func-
tion with the possible exception of ‘other functions and duties
related to intelligence affecting the national security as the
National Security Council may from time to time direct.’ NSA has
since been codified as Title 50, Chapter 15.
6.7 Federal Money Laundering 277
Greater powers were given to the CIA with enactment of the

Central Intelligence Agency Act of 1949 (CIAA). These powers
included money laundering provisions. Section 6 of the act
begins:
SEC. 6. In the performance of its functions, the Central Intelli-
gence Agency is authorized to—
(a) Transfer to and receive from other Government agencies
such sums as may be approved by the Bureau of the Budget, for
the performance of any of the functions or activities authorized
under sections 102 and 303 of the National Security Act of 1947
(Public Law 253, Eightieth Congress), and any other Government
agency is authorized to transfer to or receive from the Agency
such sums without regard to any provisions of law limiting or
prohibiting transfers between appropriations. Sums transferred to
the Agency in accordance with this paragraph may be expended
for the purposes and under the authority of this Act without regard
to limitations of appropriations from which transferred;
The act made clear the CIA could expend money without regard
to the original intent of Congressional appropriations and without
regard to federal spending policies with section 10(b):
The sums made available to the Agency may be expended without
regard to the provisions of law and regulations relating to the
expenditure of Government funds; and for object of a confidential,
extraordinary, or emergency nature, such expenditures to be
accounted for solely on the certification of the Director and every
such certificate of the Director and every such certificate shall be
deemed a sufficient voucher for the amount therein certified.
The CIA Act was codified as sections named 50 U.S.C.
403<ltr> where <ltr> is a letter. Sections 6 and 10 became 50
U.S.C. 403f and 403j, respectively. This money laundering power
appears to contradict a paragraph in article 1, section 9 of the U.S.
Constitution, given supra as an epigraph.
Statutes about the function of the CIA have been amended
several times. With Congressional approval, President Nixon reor-
ganized the executive branch early in his presidency by redesig-
nating the Bureau of the Budget as the Office of Management and
Budget. As part of Reorganization Plan No. 2 of 1970, the Presi-
dent received the functions that were vested by law to the Bureau
and its Director. Nixon was able to control approval of money
laundering transfers among other things. He delegated all acquired
control with Executive Order 11541 back to the retitled Director
who now was ‘under the direction of the President and pursuant to
such further instructions as the President from time to time may

issue.’ Both the reorganization and the executive order were effec-
tive 1 July 1970.
The National Security Act of 1947 portrays an intelligence role
of the CIA, but national security requires intervention based on
actionable intelligence, not merely intelligence. The operational
scope of ‘other functions’ lacks public demarcation and thus
checks and balances. The notes of 50 U.S.C. 401 show Presidents
have referred to the same as ‘special activities’ within executive
orders since Ford in 1976. The National Defense Authorization
Act for Fiscal Year 1987 established within the National Security
Council a ‘Board for Low Intensity Conflict’. Following the Iran-
Contra Affair, the Intelligence Authorization Act, Fiscal Year 1991
finally made clear the subversive function ‘to influence political,
economic, or military conditions abroad.’ More generally, the
1991 act resulted in the strictest oversight to that time for one
reason: paper trail. The President was thereby required to docu-
ment his every authorization for covert activities with a ‘finding’,
so named because ‘the President finds that this covert action is
important to the national security of the United States.’ Addition-
ally, government money could not be laundered for covert activi-
ties without a finding. The Intelligence Authorization Act for
Fiscal Year 1981 had made two committees the exclusive oversight
committees regarding covert operations: the Senate Select
Committee on Intelligence, created 19 May 1976, and the House
Permanent Select Committee on Intelligence, created 14 July
1977. The 1991 act naturally required that those two committees,
or in dire cases their leaderships, be promptly apprised of presi-
dential findings. Money laundering for covert operations
continued to require notification of the intelligence subcommittees
of each Congressional house's appropriations committee. The
written accountability by findings is still in effect today, as
amended. A problem with Congressional oversight is that without
Congressional term limits, or more to the point without actually
representative representative government, they are not us.
Shortcomings of Congressional oversight have been acknowl-
edged by Congress itself. Congress and President Clinton reiter-
ated the prohibition of drug trafficking with section 313 of the
Intelligence Authorization Act for Fiscal Year 2000. The resulting
50 U.S.C. 403–8 has the title “Reaffirmation of Longstanding
Prohibition Against Drug Trafficking by Employees of the Intelli-
gence Community.” Congress requested an assessment of Iraq's

capabilities with weapons of mass destruction to evaluate the
merits of President Bush's recommendation of invasion. The
normative information in the form of the October 2002 National
Intelligence Estimate was rushed to Congress from the intelligence
agencies under the President's authority. It supported the Presi-
dent's agenda to invade Iraq, but the Senate Select Committee on
Intelligence reported it was mostly mischaracterized. An inves-
tigative presidential committee established by President Bush
described the pre-war judgments of the ‘Intelligence Community’
as almost entirely ‘dead wrong’. A third report sponsored by the
U.S.-led Coalition found: “Iraq did not possess a nuclear device,
nor had it tried to reconstitute a capability to produce nuclear
weapons after 1991.”
The problems with oversight are clearer from history's greater
perspective. In 1921 an Iranian army officer Reza Shah supported
the overthrow of the Qajar Dynasty. He became shah (king) in
1925. In 1941 Reza Shah was forced to abdicate by the United
Kingdom and the Soviet Union. These two countries had been
imposing on Iran even before the discovery of Iranian oil in 1908.
The CIA was created in 1947 as the primary U.S. intelligence
agency. Not long after in 1953, the CIA performed an ‘other func-
tion’ in partnership with the United Kingdom and restored the
Shah of Iran because he was anti-Communist. That is to say, the
Iranians were about to nationalize their oil industry, but oil execu-
tives and cronies of the United States and Britain said no. The
backed Shah was a despot. Resentment of the Shah and the West
grew until in 1979 the Ayatollah Khomeini inspired a revolution
resulting in the Islamic Republic of Iran and a hostage crisis. Too
bad the U.S. Government had provided $11 billion in military
hardware over the preceding decade and had trained over 11,000
Iranian military officers. Smooth move, Ex-lax. Today, U.S.-
Iranian relations are better than ever. The chief Iranian component
of the U.S. trade deficit today is terrorism.
On 5 February 2003 Secretary of State Colin Powell gave a
speech to the United Nations (UN) in New York outlining Iraq's
noncompliance with UN resolutions and supposed pursuit of
weapons of mass destruction. The day before an employee from
the Department of the Defense had raised strong objections to the
speech's content with the Deputy Chief of the CIA's Iraqi Task
Force. One of several intelligence sources the employee ques-
tioned was the human source ‘Curve Ball’. The employee was the
only American who had ever met Curve Ball. The Deputy Chief,
apparently predisposed by little more than the Washington Post,
suggested that the two meet in an e-mail reply:
Greetings. Come on over (or I'll come over there) and we can
hash this out. As I said last night, let's keep in mind the fact that
this war's going to happen regardless of what Curve Ball said or
didn't say, and that the Powers That Be probably aren't terribly
interested in whether Curve Ball knows what he's talking about.
However, in the interest of Truth, we owe somebody a sentence
o[r] two of warning, if you honestly have reservations.
The email excerpt comes from a report by the Select Committee
on Intelligence of the U.S. Senate that investigated the U.S. intelli-
gence disseminated during the cultivation of political support for
the U.S. invasion of Iraq militarily launched 19 March 2003. In
the report were expressed these conclusions regarding weapons of
mass destruction (underline emphasis added):
Conclusion 1. Most of the major key judgments in the Intelli-
gence Community's October 2002 National Intelligence Estimate
(NIE), Iraq's Continuing Programs for Weapons of Mass Destruc-
tion, either overstated, or were not supported by, the underlying
intelligence reporting. A series of failures, particularly in analytic
trade craft, led to the mischaracterization of the intelligence.
Conclusion 2. The Intelligence Community did not accurately or
adequately explain to policymakers the uncertainties behind the
judgments in the October 2002 National Intelligence Estimate.
Conclusion 3. The Intelligence Community (IC) suffered from a
collective presumption that Iraq had an active and growing
weapons of mass destruction (WMD) program. This “group
think” dynamic led Intelligence Community analysts, collectors
and managers to both interpret ambiguous evidence as conclu-
sively indicative of a WMD program as well as ignore or mini-
mize evidence that Iraq did not have active and expanding
weapons of mass destruction programs. This presumption was so
strong that formalized IC mechanisms established to challenge
assumptions and group think were not utilized.
Conclusion 4. In a few significant instances, the analysis in the
National Intelligence Estimate suffers from a “layering” effect
whereby assessments were built based on previous judgments
without carrying forward the uncertainties of the underlying judg-
ments.
Conclusion 5. In each instance where the Committee found an

analytic or collection failure, it resulted in part from a failure of
Intelligence Community managers throughout their leadership
chains to adequately supervise the work of their analysts and
collectors. They did not encourage analysts to challenge their
assumptions, fully consider alternative arguments, accurately
characterize the intelligence reporting, or counsel analysts who
lost their objectivity.
Conclusion 6. The Committee found significant short-comings in
almost every aspect of the Intelligence Community's human intel-
ligence collection efforts against Iraq's weapons of mass destruc-
tion activities, in particular that the Community had no sources
collecting against weapons of mass destruction in Iraq after 1998.
Most, if not all, of these problems stem from a broken corporate
culture and poor management, and will not be solved by addi-
tional funding and personnel.
Conclusion 7. The Central Intelligence Agency (CIA), in several
significant instances, abused its unique position in the Intelligence
Community, particularly in terms of information sharing, to the
detriment of the Intelligence Community's prewar analysis
concerning Iraq's weapons of mass destruction programs.
On 17 May 2006 the Washington Post broke the news that the
United States was covertly supporting the warlords of Somalia to
stave off militant Islam.
As history confirms, the institutionalized lack of financial and
operational oversight of so-called intelligence activities has
predictable hazards. The enormity of the means, the compro-
mising nature of most people drawn to power, and the fallibility of
isolated decision making are obvious liabilities. Financial license
of secretive agencies encourages widespread waste, fraud, and
even tyranny. Regulatory changes have been made, but funda-
mental problems remain. The biggest problem is probably that
Americans don't give a shit.
No military service or major Department of Defense (DOD)
component has passed an independent audit over the entire 19-year
history of Government Accountability Office (GAO) audits. The
first GAO report was issued February 1990 and evaluated the Air
Force, the only cooperative military service at the time:
We found that adjustments totaling billions of dollars were made

to account balances and records throughout fiscal year 1988. We
did not find records to adequately document the purpose of many
of these adjustments, and Air Force officials could not provide a
reasonable explanation for them.
Sixteen years later a new GAO report stated:
We identified numerous problems with DOD's processes for
recording and reporting costs for the Global War on Terrorism
raising significant concerns about the overall reliability of DOD's
reported cost data. As discussed on our September 2005 report,
neither DOD nor Congress know how much the war was costing
and how appropriated funds were spent, or have historical data
useful in considering future funding needs.
The CIA's laundering provisions are institutionalized opportuni-
ties for fraud, waste, and tyranny bigger than some nation's
economic output. The scope of these abuses can't be known under
the circumstances. The following statements from a hearing of 18
July 2001 touch on the subject. At issue was whether or not all
Congressional oversight must be handled by the two intelligence
committees.
Representative Stephen Horn (R-California, 38th) said:
Today's hearing should not be necessary. However, it is taking
place because the Central Intelligence Agency has refused to
comply with the oversight efforts of the Committee on Govern-
ment Reform and its several subcommittees. In so doing, the
agency is assaulting Congress' constitutional responsibility to
oversee executive branch activities. The CIA apparently believes
that it is above that basic principle in our Constitution. We don't
agree.
Representative Christopher Shays (R-Connecticut, 4th) said:
In 1994, the Central Intelligence Agency (CIA), adopted a self-
described “hard-line” approach to congressional oversight
inquiries, particularly General Accounting Office (GAO), reviews
not initiated by the Select Intelligence Committees. The policy
attempted to draw a bright-line between sharing intelligence prod-
ucts with congressional committees and submitting to any over-
sight which the agency believes will compromise the sources and
methods of intelligence gathering.
Based on that dated, distorted concept of oversight, CIA refuses
to discuss its approaches to governmentwide management reforms
and fiscal accountability practices. Other intelligence agencies
share information freely. Blinded by its own bright-line, the CIA
often stands alone in refusing routine congressional requests for

data, even going so far as attempting to persuade other agencies to
resist as well.
6.8 Top 4 Conjectures
Most railroads waited years before installing well-known safety

devices, because, the men bitterly assumed, condolences came
cheaper.
—Robert V. Bruce, historian
In a democracy, or a republic only as good as its approximation of

democracy, each individual is responsible for using his sovereignty
well. This takes critical thinking, self-discipline, and thoughtful
action. What follows is fodder for your brainstorm.
Mr. Speaker, just to pick up on the gentleman's point that in terms
of the work that the U.N. Teams did, respectively it has been
established that there were no stockpiles. There were no weapons
of mass destruction. In fact, David Kay, appointed by President
Bush, came back and told the American people, to use his words,
we were all wrong. I think it is so important to analyze and under-
stand all of the dots here and what lies in the future. As I said in
my opening remarks, we are now creating alliances and working
with people who rival Saddam Hussein in terms of their tyranny,
their abuse of human rights, and their willingness to do anything
to enhance their power.
I mentioned earlier we have a military base in Uzbekistan. And
the President of Uzbekistan, here he is with our Secretary of
Defense. The gentleman, if the Members will, to Secretary Rums-
feld's right, his name is Karimov, Islam Karimov. He is a tyrant.
He is a thug, and we are in bed with him. The American people
should know that. In Turkmenistan, I had mentioned earlier the
leader of Turkmenistan, and we are sending him millions of
dollars. Talk about a madman. He is a certifiable nut, changing
the names of the calendar, April for his mother and January for
himself. What are we doing? We are making the same mistake,
and that is why it is important that those that are watching Iraq
Watch tonight take this information, read on their own, and look
to the future and understand that we are now or could be planting
the seeds for another Saddam Hussein that will wreak havoc in the
region, that obviously these two will continue to abuse human
rights and what about our claim to moral authority when we are
losing prestige in the world today?
—Representative William Delahunt, D-Massachusetts, 10th
district, 11 February 2004
#4: Just Plain Stupid
6.8 Top 4 Conjectures 285
I believe freedom is not America's gift to the world; I believe

freedom is the almighty God's gift to each man and women in this
world. And therefore, as we work to not only make the homeland
more secure, we work to spread freedom, which will make the
world more peaceful. The enemy can't stand the thought of free
societies. That's why they attacked us, see.
—President George W. Bush, Republican, 20 April 2004
#3: Christian Crusade
Prince Bandar has had a 20-year friendship with former President
George H. W. Bush. [Investigative author] Unger questions
whether the long-standing Bush-Saudi relationship could have
influenced the administration. The latest in a line of business
links between the Bush family and the Saudis involves the Carlyle
Group, a private-equity firm for which George H. W. Bush is a
senior advisor and former secretary of state James Baker III is a
senior counselor. The Carlyle Group has received $80 million in
Saudi investment, Unger reports, including $2 million from the
bin Ladens which was returned to them after September 11. In
1995, Abdulrahman and Sultan bin Mahfouz invested “in the
neighborhood of $30 million” in the Carlyle Group, according to
family attorney Cherif Sedky. Abdulrahman bin Mafouz was a
director of the Muwafaq Foundation, which has been designated
by the U.S. Treasury Department as “an al-Qaeda front.” (Carlyle
categorically denies that the bin Mahfouzes are now or have ever
been investors.)
—Vanity Fair press release, circa August 2003
The nerve of the Russians that they have economic petroleum
interests in the Middle East. It is not as if our country's President
and Vice President are oilmen who have done quite well in the
Middle East. It is not as if Halliburton had millions of dollars in
contracts with Iraq as recently as 2000 while Vice President
Cheney was at the helm. It is not as if Secretary Rumsfeld met
with Saddam Hussein in 1983 to help normalize U.S.-Iraqi rela-
tions. It is not as if Secretary Rumsfeld visited Iraq at a time
when Hussein was using chemical weapons, as the Washington
Post said, on an almost daily basis. It is not as if our country—our
own country—does not continue amicable relations with Saudi
Arabia, one of our chief oil suppliers and the homeland of 15
terrorists who attacked our country.
According to oil industry executives and U.N. Records from
1997 to 2000, Halliburton held stakes in two firms that signed
contracts to sell more than $73 million in oil production equip-
ment and spare parts to Iraq, while later Vice President Cheney
was Chairman and CEO of that company. Mr. Cheney oversaw
Halliburton's acquisition of Dresser Industries, who with Inger-

soll-Rand created two subsidiaries, Dresser-Rand and Ingersoll-
Dresser, that sold sewage treatment pumps, spare parts for oil
facilities, pipeline equipment to Baghdad through French affiliates
while we had sanctions against Iraq from 1997 to 2000.
I do not like what Russia is doing. I make that clear, and I think
that people's objections on this Committee are right on target. But
I don't know how that is a whole lot different from what Vice
President Cheney has done. The Russians have an interest in Iraqi
oil. They have contracts and infrastructure agreements, but the
U.S. has an interest in Iraqi oil as well, probably quite similar to
Halliburton's from 1997 to 2000.
—Representative Sherrod Brown, D-Ohio, 13th district
New information from the Defense Contract Audit Agency reveals
that Halliburton's questioned and unsupported costs now exceed
$1.4 billion. Yet despite this record, Defense Department officials
have repeatedly shown Halliburton special treatment by over-
ruling the objections of career officials, waiving the requirements
of the federal procurement regulations, and awarding Halliburton
millions in lucrative fees.
—a Congressional Democrats' report, 27 June 2005
#2: Status Quo Flow
On 15 April 1993, a team of terrorists was arrested by Kuwaiti
authorities for plotting to assassinate former President George
Bush during an official visit to Kuwait City on the previous day.
The two leaders of the team confessed to Kuwaiti authorities and
later to US investigators that they had been recruited; trained; and
equipped with arms, explosives, and false passports by Iraqi intel-
ligence agents based in Basra. Forensic tests conducted by US
experts proved conclusively that the explosive devices were iden-
tical to others recovered before and after the Kuwait event and
were known to have been manufactured by Iraq. The Iraqis had
sufficient foreknowledge of President Bush's visit to prepare for
the operation. In addition, Saddam Husayn had several motives
for wanting to assassinate the former President, including revenge
for the devastation caused by Coalition forces during Operation
Desert Storm. Iraqi press articles and editorials had made explicit
threats before the assassination attempt.
xx* * * * *xx
On 20 March 1995, following all of the defendants' appeals,
Kuwait's highest appellate court—the Court of Cassation—
confirmed the death sentence for two of the Iraqis and commuted
6.8 Top 4 Conjectures 287
the sentence of the other four defendants who had faced execu-
tion, including one Kuwaiti. The Amir must order the executions
and has not done so as of August 1995.
—U.S. Government paper, declassified 5 April 2002
#1: Pay Back's a Bitch
The Saddam-Bush affinity ended around or after the Iraqi inva-
sion of Kuwait in 1990. Things were chummy back in the day.
You might find online an infamous photograph of Rumsfeld and
Hussein shaking hands 20 December 1983, but alliances are sand
dunes in the Middle East.
Following the 1979 Iranian revolution by activist Shi'a
Muslims, Saddam started the Iraq-Iran War (1980–1988). Saudi
Arabia, Kuwait, the United Arab Emirates, and Qatar—all nearby
and home to rival Sunni Muslims—were inclined to lend Iraq
something in the neighborhood of $34 billion. Nations of the Paris
Club, an informal group of creditor governments who coopera-
tively manage payments due from unsettled debtor nations, lent
Saddam nearly $21 billion. Japan tops the list at $4.1 billion,
followed by the former Soviet Union (succeeded as creditor by
Russia) at $3.5 billion, mainly or entirely for helicopters and MiG
fighters. The Soviets delivered 24 top-of-the-line MiG-29
Fulcrums in early 1987. Vying for the same military business was
France, third on the Paris Club list at $3.0 billion in loans, mainly
or entirely for F1 fighters, Exocet air-to-surface missiles, and the
like. The United States was the fifth most generous of the Paris
Club nineteen with $2.2 billion, made in commercial loans guaran-
teed by the U.S. Department of Agriculture for the sale of Amer-
ican agricultural goods. The Banca Nazionale del Lavoro (BNL)
scandal of 1992–1993, with its implication of illegal U.S. Govern-
ment loans to Iraq worth more than $4 billion, merits this passing
mention. Still more nations supported the cause with still more
billions in U.S. dollar terms. Saddam Hussein became the world's
champion of oil stability against the menace of Persia. Over the
years 1980–1988 and in terms of constant year-1989 U.S. dollars,
Iraq imported $59 billion's worth of arms, and Iran imported $18
billion's worth. Among Middle Eastern countries the two warring
adversaries ranked 1st and 4th. Number three was Syria with $25
billion. Saudi Arabia was number two with $39 billion in arms
imports over the same period, with roughly a third supplied by the
United States. Fifteen of the nineteen 9/11 hijackers were Saudi
nationals. Smooth move, Ex-lax.
Before the war Iraq was fiscally sound with a promising econ-
omy. By war's end, Saddam's regime was hampered by a debt that
could not be paid. Iraq's GDP was estimated to have dropped after
the war's onset to $18 billion in 1983 and risen to $35 billion in
1986. At the risk of redundancy, Iraq's wartime arms purchases
alone were in the neighborhood of $55 billion (in unadjusted
dollars). Iraq entered the 1990s in the red for over $50 billion with
interest accruing.
If Saddam was unable to seize from rival Iran entire control of
the Shatt al Arab waterway, the only waterway connecting Iraq to
international markets, there was coastline to the south. Saddam
raised tensions with Kuwait and demanded debt forgiveness.
Negotiations to quell the situation involved Egypt, Jordan, and
Saudi Arabia. Despite that on 2 August 1990 Kuwait was overrun
by Iraqi troops. Wiping away $15 billion or so in debt could be
done one way or another. The same day President Bush sided with
Kuwait by freezing Iraqi assets and aid with Executive Order
12722. Amid security concerns, King Fahd soon accommodated
U.S. troops. Strident criticism began from Osama bin Laden.
With the U.S. military response looming, Iraq defaulted in 1991
on the $2.2 billion credits for American agricultural products. The
total debt with interest theoretically reached $4.1 at the time of
Saddam Hussein's capture on 13 December 2003 and was forgiven
in full on 17 December 2004. But that was after Osama published
in 1996 his Declaration of War against the Americans Occupying
the Land of the Two Holy Places. The Saudi king styles himself as
Custodian of the Two Holy Mosques. Osama's declaration was
made after the failed 14 April 1993 hit on the 41st U.S. President.
His son as President would see one more debt settled fourteen
years later. It was just after 10 pm in Washington, D.C. on Friday,
29 December 2006 when a shoddily erected government hung
Saddam Hussein al-Tikriti in Baghdad. Six days later the Demo-
cratic Party took control of Congress and U.S. appropriations to
Iraq. The political change has proven to be bluster.
Chapter 7
RESTORING SANITY TO
POLICY
7.1 Philosophical Enfranchisement
Whatever is natural, no matter how much it contravenes

conventional rules, will be pleasing.
—Southern Quarterly Review, Columbia, SC, July 1848
Enfranchisement is an emotional choice. George Lucas and

friends essentialized emotional choices by having Yoda avow, “Do
or do not. There is no try.” Either your capacity is directed to
empowering participation in a franchise or it is not. If not, you do
not deserve the associated benefits. It pays to take Socrates'
advice and ‘know thyself.’
Knowing thyself is all about identity. Owning it. Analyzing it.
Synthesizing it. It's your responsibility. If an inert body is a dead
body, wouldn't an inert mind be a dead mind? A living mind might
simply follow an automatic scheme, be it human, reptilian, or
vegetable. Great advice about what not to do or be comes from
Freud. Notable positive example comes from Maslow. If we were
to leave the study of psychology to psychologists, we may as well
leave the study of politics to the politicians and economics to the
economists. We know what the results would be because we are
living it. Deficiency is not bliss, unless the stupefacient is work-
ing.
The challenge is to master our faculties from the beginning. We
begin with our psychology, and our psychology begins with our
structural assumptions, our philosophy. It's power is to enable and
289
290 7. RESTORING SANITY TO POLICY
direct all our power. With careful analysis, we can direct our
talents to solving problems rather than making them. Defining
ourselves in terms of solutions rather than problems would go a
long way. Impotent is the adherent of McCarthyism endowed by
looming Communism. Resigned is the black American sheltering
in the negational inverse of white America. Wretched are the poor
eschewing positive failure.
Healthy individualism has nothing to do with the external
world. Validation derived from the world is as fickle and shifty as
the world. In some respects the world is loving; in others, spiteful.
To effectively manage our interaction with the world, we abso-
lutely need loving and spiteful thoughts, ideas, and language—
keeping our identities safely held aside all the while. Mastery of
one's identity, in this layman's opinion, is the first crucial separator
between the emotionally healthy and the emotionally unhealthy.
Since I take responsibility for my mental health, and since I expect
you to take responsibility for yours, for our mutual protection, I
feel justified to facilitate a laymen's dialog on the subject.
Those not able to maintain a positive identity are quickly worri-
some and emotionally volatile. The existence of swear words,
contrary opinion, etc. requires these believers to perpetually and
nervously stand guard. Swear words, disparaging words, these are
vital tools for expression. Language must serve thoughts and
thoughts must serve perception. Blaming the word misses the
point and perspective it conveys because words are not substance.
Words only convey substance. Appraise the thought and the
thinker. Words have no intent. Sometimes disparaging commen-
tary is not appropriate, but sometimes it is. People can be stub-
bornly dense. If we eliminate the ‘bad’ words, we simply must
coin their replacements. All that work for naught.
Either you own your emotions or your emotions own you.
Freedom from fear of identity and words enables a rational study
of beliefs. Belief systems are not just about psychological capac-
ity. Belief systems are about identity. Hence, the bugaboo. It
need not be so. Flexible identity with the external is empathy.
Empathy is this layman's second crucial separator. It is the differ-
ence between illiberal and systematic thought. Two types of belief
systems are of monumental social (and political) importance.
Belief systems that reach to the external supernatural are religions.
(The internal supernatural would be spiritual in this nomenclature.)
7.1 Philosophical Enfranchisement 291
Belief systems that reach to the impersonal social past are tradi-
tions. I have a right and need to publicly give my opinion on these
things, because I bear the consequences of your beliefs.
The Founding Fathers valued Christian faith, but knowing
history they feared sovereign religion. Their belated fix was the
constitutional democratization of Christianity at the State level.
The First Amendment of the U.S. Constitution in part specifies the
separation of church and state thus: “Congress shall make no law
respecting an establishment of religion, or prohibiting the free
exercise thereof.”
This important design element is immature for several reasons.
Government sponsorship of a religious establishment is no more
meritorious on a large scale than on a larger scale. More impor-
tantly, democratic principles by definition recognize individual
freedoms not state freedoms. Therefore, anything other than
uniform separation of religious institutions and governmental insti-
tutions is flawed. Whoops. The preceding statement is generally
correct in conception, but due to excessive imprecision (or lack of
sophistication) it is hurtfully wrong. No civilized man is an island,
and superlatively local government may rightly institute religious
values. History both made and in the making shows the danger of
government wedded with theology. Shear theocracy, I hope we
can agree, is at odds with democratic principles and the blessings
of natural law. (That is: the blessings of a free people's productiv-
ity.) An omnipotent being of any persuasion must have approved
the Laws of Nature.
However, the idea of no relationship between church and state
generally is as absurd as government not governing anywhere reli-
gion exists. Democracy requires the organization of a majority.
Its enfranchisement requires individual participation and favors
political organization. People organized howsoever, even reli-
giously, are charged with civic duty. To argue a specific religious
group should or should not participate in the political process is
self-serving. Compare your esteem for religious groups of ante-
bellum America that agitated against slavery with those that disre-
garded slavery as a secular issue. The Internal Revenue Service
supports a national government policy of revoking the tax-free
status of non-profit religious groups for espousing bias within a
political race. The problem is not involvement of religious groups
in the political process. The problem is the expedient complica-
tion of the tax code.
Tax payers like all life on this planet are subject to a continuum
of change. Traditionalist would hold life to a point on that contin-
uum. Any point held dearly was reached by progress. Stop at the
existence of unicellular organisms? No traditionalist I know
would. Stop at the Cretaceous Period? Balderdash! Does the
Copper Age suit you? Flapdoodle. How about the Bronze Age?
A traditionalist opposing progress itself is a hypocrite. Enjoy the
continuity of shared human traditions, but enjoy the changes too.
The reliable features of the universe are laws of nature. These
laws, for example Newton's third law of motion, have humanistic
corollaries adapted as adages, for example the golden rule.
Newton's first law suggests that we let sleeping dogs lie. The law
of conservation suggests that you should live within your means.
Give unto tradition what is invariant or customary, but give unto
progress what is variable and varied.
7.2 Intellectual Enfranchisement 293
7.2 Intellectual Enfranchisement
Republicanism can exist only amid a virtuous people.

—Democratic Review, New York, November 1849
Learning and its fruits come naturally to us as children. Show me

an adult smart enough to disuse or discourage this aptitude, and I
will show you a fool. Enfranchisement has not only a will require-
ment but a means so willed requirement. The capacity of will,
philosophical capacity, we could call a meta-capacity. To avoid a
confusion of semantics, I now treat capacity that is not capacity to
activate one's will. Such means or capacity within the psycholog-
ical realm is intellect. Intellect's fruit knowledge is the power to
behold and create choices, even philosophical choices of will.
So critical is our intellectual strength because of its social
consequence and resistance to improvement. Hence, intellect is
not simply dispensed, and its scarcity is often a bottleneck. Yes,
that bottleneck could trace back to limitation of will. Worse yet,
an intelligence of dubious quality could demean rather than
embolden a healthy will. The consequences of intellectual devel-
opment are great. By merely practicing a competent under-
standing of the principles of our civilian franchises en masse, we
virtually solve our political problems in a democratic society.
Mercifully scuttled were the Dubai ports deal and the O. J.
Simpson, If I Did It marketing blitz.
Do not presume the nonverbal rhetoric within the bombastic
adaptations of ‘government of the people, by the people, and for
the people.’ We are not only entitled to vote. We are entitled to
demand change to the electoral architecture of our country. But
democracy is not merely a particular style of government. It is a
particular style of society and that allows us so much more!
Within our democratic society, demand an economy of the people,
by the people, and for the people!
It has been and will remain necessary to create, maintain, and
limit the Establishment. Establishment has a history of stealing
labor from the masses. It has a history of blocking upward
economic mobility to escape the judgments of downward mobility.
Pathetically, we the working class of America are sold by
Congress and bought by Big Business. Throw out the incumbents

(and as many Demorepublicrats) as possible, and prove we are not
for sale. Our ‘federal’ election scheme thwarts it.
The needs of the privileged few are not always congruent with
the needs of we the country. Patriotism serves the latter if it's real.
Patriotism, if aligned with democracy and potency, is aligned with
government secularism and thoughtful progressivism. Elimination
of a man bold enough to order the assassination of a former U.S.
President is one thing. A carnival-of-fraud subterfuge in the thou-
sands of enlisted lives outright, several times more broken, and in
the hundreds of billions of dollars degrading another several
hundred million more lives is quite another. That's only counting
American lives.
How many existent generals active or retired does it take to
censure the Commander in Chief? How many existent news
outlets does it take to publicly recognize a brilliant performance by
Stephen Colbert at the 2006 White House Correspondents' Associ-
ation Dinner? How many Americans are needed to recognize that
a President's natural-born citizenship has not been proven? Too
many. Patriotism is what the people use to keep government in
line; propaganda is what government uses to keep the people in
line. Without intellect won on worldly facts the difference is not
perceptible.
7.3 American Epochs of Subjugation 295
7.3 American Epochs of Subjugation
*x*x* the man of wealth thus becoming the mere agent and
trustee for his poorer brethren, bringing to their service his
superior wisdom, experience, and ability to administer, doing for
them better than they would or could do for themselves.
—Andrew Carnegie (1835–1919), steel magnate
In this great and wealthy state [of California circa 1879] the
amount of poverty was shocking, and a few thousand citizens were
rich while hundreds of thousands eked out a bare existence, their
chances to rise in life unnaturally restricted by corporate and
individual selfishness.
—Allan Nevins (1890–1971), historian
Wealth does not create itself. Thus, we employ labor to raise

living standards. The questions are: Whose and whose?
Throughout the history of mankind, people have sought to exploit
the labor of others. One has not studied history if one has not
studied that.
In the late 1800s the United States experienced the Civil War,
greenbacks, carpetbaggers, middle-class snobbery, heavy immigra-
tion, and robber barons. The Progressive Movement started well,
dismantled Standard Oil in 1911, and ended terribly with the birth
of moralism and feminism. The manliness prized during World
War II capitulated to feministic devaluation in the 1960s. In the
same period, the Civil Rights Movement that began and did well
the decade before ended terribly with popularized incivility. The
Vietnam War was fought officially by American troops 1965–
1975. (General Grant had shown 100 years before, D-day 21 years
before, and the Cuban Missile Crisis 3 years before, before the
Tonkin Gulf Resolution, that wars are won along geographical not
political boundaries. Any country with an economy must econo-
mize. So much for ‘containment’.) McCarthyism beat individual
sovereignty from the governing process; it's a critical departure
facilitated by feminized protesters. The value of the dollar plum-
meted relative to gold from 1969 to 1980. The ‘social capital’ of
our relations has been on a protracted decline since 1968. Water-
gate from 1972 to 1974. Keynesian economics bred stagflation.
An Indian summer of manliness during Reagan's cold war coup de
grace. Savings and Loan bailouts. The effective Social Security
tax rate on income reaching the current 12.4-percent level in 1990.
The Fed's beggar-thy-worker manipulation of interest rates begun

July 1993. Political correctness and the popularization of
subprime mortgages emerged in the mid 1990s. Materialism. The
rise of litigation. Failed students and parents. Illegal aliens. Non-
immigrant work visas. Lobbyists writing legislation. Egregious
government dole and largess. Elections of, by, and for the Estab-
lishment. It suggests a dangerous general pattern: divisive war or
crisis, inflationary government spending and/or credit expansion,
corrupt governance, corrupt populace, massive labor exploitation,
totalitarian rule. The current progression, going back to the early
1960s, to the prelude of Johnson's Guns & Butter epoch, is
compounded by reformulation of divisive war and economic peril
and has been nursed along by the most virulent run of feminism in
world history. The general quality of the individual is the linchpin
in the pattern: we call it culture. (Culture is the commonality of
psyches in a social network. Culture has ‘geographical’ features if
you see what I mean, but I digress.)
The first epoch of American subjugation was American slavery.
It was an overt, personal exploitation. The second was the Indus-
trial Revolution. Laissez faire was sold as the fix to noblesse
oblige. It was a socially abstracted exploitation. The chains were
not on hands and feet; they were on doors of opportunity and
avenues of success. Today's epoch could be called the Connec-
tivity Revolution—for what we have gained and lost. Subjugation,
still socially abstracted beyond individual relations, is no longer
standing in government leeway but riding on government imple-
mentation. Executives acting as our economic Casanovas, as arti-
sans living the hippie freedom of love 'em and leave 'em, are
destroying us with ETDs. We are several years into the Regilded
Age.
The Fed's Board of Governors utilize statistics only the Federal
Government with information technology could generate.
Employers legally import workers with various visas only the
Federal Government could approve. An occupancy of twelve
million illegal aliens calculated to flood the labor market only
selective federal law enforcement could allow. Employers of ille-
gals accept unverified social security numbers, yet we have the
technology to calculate GDP and CPI. Folks, as society evolves,
the methods of the Establishment evolve too. The character of we
the people must evolve, human rights must evolve, or we will
suffer. The test for society has been and will always be an
7.3 American Epochs of Subjugation 297
omnipresent démocratie oblige within the greater test of life. The

first renditions of newly colossal and complex socioeconomic
systems (e.g. the Roman Empire surrounding the Mediterranean,
the British and other European Empires creating global trade)
naturally favor simplicity over justice. The first rendition of a
world society with internal global politics is under construction.
Enjoy.
Totalitarian regimes maximize their own power by valuing tame
individuals for their popular power that can be horded easily.
Democracies maximize their civilization's power by valuing vital
individuals for their power that can be offended easily. Increasing
the margins of individual safety in our social design goes the
wrong way. The special people with their special feelings are so
presumptive of social and natural exemption. The problem is that
the presumptively special people can succeed wonderfully in the
short term. They emulate from their ilk some icon, their greatest
which exemplifies a lifetime of cajoling indulgence. Maggots
aren't special enough to run the apple farm. The distressed apple
farmer unavoidably sells out to the state-owned syndicate of totali-
tarian maggot farmers.
Notice how the opening quote from Andrew Carnegie sounds
eerily similar to the views of patronizing slave owners 50 years
before Andrew's capitalistic reign. Unless the prejudice against
letting a natural being be valued and rewarded naturally is shunned
by society, that society will support the means of injurious
leverage on itself. If we simply let each of us in the spirit of
autonomy reap what we sow on the best ground we in the spirit of
team can provide, we will have our best and failure will purge the
rest.
7.4 The Fifth Branch
As excited as I am to be here with the President, I am appalled to

be surrounded by the liberal media that is destroying America—
with the exception of Fox News.
—Stephen Colbert, political satirist
Over the last five years you people were so good—over ah—over,
over tax cuts, WMD intelligence, the effect of global warming.
We Americans didn't want to know, and you had the courtesy not
to try to find out.
—Stephen Colbert, thirty seconds later
The prospects of getting a government better than we deserve are

rather bleak. Not only must we think independently, we must
think well independently. So what is the fifth branch? We are told
the Federal Government has three branches. As I have labored to
convey by counterexample, that is not true. The fourth branch, of
banking, is of immense importance to our lives.
The fifth media branch is of prime importance in a country that
governs via free elections. The fact was not lost on Thomas
Jefferson (if you recall). Nor is it lost on the ruling families of the
Middle East. Apparently, it is lost on most Americans now.
I visited the U.S. Securities and Exchange Commission (SEC)
website located at http://www.sec.gov on 25 December 2006.
There was maintained a glossary of terms styled ‘fast answers’.
The fast answers Web page entry for shareholders was preemp-
tively titled “Shareholder's Lists, When You Can Get Them.” The
page said: “the SEC does not maintain shareholder lists.” The
page went on to describe two limited situations where the
company must allow shareholders to contact other shareholders:
the proxy solicitation, and the tender offer. Links were there to the
pertinent fast answer about each situation. The “Tender Offer”
Web page stated: “The SEC also requires any person acquiring
more than five percent of a company's securities directly or by
tender offer to file a Schedule 13D.” I followed the link to the
Web page “Schedule 13D” and voilà, a means of shareholder
information.
The first paragraph explained:
7.4 The Fifth Branch 299
When a person or group of persons acquires beneficial ownership

of more than 5% of a class of a company's equity securities regis-
tered under Section 12 of the Securities Exchange Act of 1934,
they must file a Schedule 13D with the SEC. The term ‘beneficial
owner’ is defined under SEC rules. It includes any person who
directly or indirectly shares voting power or investment power
(the power to sell the security).
Two paragraphs later was given: “You can find the Schedules 13D
for most publicly traded companies in the SEC's EDGAR
database.”
Navigate to the top-level Web page of the EDGAR database on
the SEC website if you care to follow along. You may need to
modify your usage to compensate for any alterations to the
website. To find Schedule 13D's, first specify a company. I
suggest you try ‘News Corp’ in the search field and select the link
for the company with Central Index Key (CIK) 0001308161 or try
‘Time Warner’ and select the company formerly AOL Time Warner
Inc. Search for the filings of interest with ‘SC 13D’ in the search
field.
With a little perseverance here and with the Internet at large,
you will find HRH Prince Alwaleed Bin Talal Bin Abdulaziz
Alsaud acquired a 5.46-percent controlling interest of Fox News
on 29 August 2005. Prince Alwaleed bin Talal is a member of the
Saudi royal family. For the few of you in the back of the class, the
Saudi royal family rules Saudi Arabia and has a longstanding
friendship with the Bush family.
You will also find the Government of Dubai acquired a potential
influence over a 2.39-percent controlling interest in CNN on 15
February 2006 reported due to an association with the Icahn Group
having 3.28 percent—the sum being over 5 percent. The same
document discloses ‘Mandatory Exchangeable Notes due 2007
that are exchangeable into shares of Common Stock’ suggestive of
a same 2.39-percent controlling interest. If the association with
the Icahn Group were terminated, the Dubai government would
have been free to acquire such stock without filing with the SEC as
a beneficial owner. As you can see from Edgar, the association
was terminated 1 March 2006. Dubai (or Dubayy) is an emirate of
the United Arab Emirates (UAE) having a Dubai City. The
Government of Dubai Emirate is ruled by Sheikh Mohammed bin
Rashid al-Maktum. Sheikh Mohammed is also the Prime Minister
and Vice President of the United Arab Emirates.
Because Schedule 13D filings are required only when a 5-

percent stake among associated owners defined however is
exceeded, what don't we know about media ownership? So what
mainstream news media of the United States made issue of Arab
media control on the Web? My search of 25 December 2006 did
not find one. However, U.K.-based Guardian Unlimited kindly
had posted an article titled “Saudi prince ups News Corp stake” by
Chris Tryhorn dated 6 September 2005, and with it the fact that
Prince Alwaleed bin Talal acquired 5.46 percent of voting shares.
Thanks to Wikipedia, I did find video online from the American
show Charlie Rose in which the Prince said he owned between 5
and 6 percent of News Corp., almost 1 percent of Time Warner,
and some of Walt Disney (think ABC). You probably didn't catch
the Charlie Rose interview; it's from the Public Broadcasting
Service.
Guardian Unlimited also reported a partnership between Bill
Gates and Prince Alwaleed bin Talal regarding luxury hotels. My
point being the potential danger of a global establishment. There
is a global establishment, however loosely connected. For
example, Central Bank chairmen from all over the world organize
under the Bank for International Settlements. I don't argue global-
ization is bad. I argue is it progressive and naturally better. But
better at what? Without media we are unable to protect our
common interests. History tells us what happens when we don't.
7.5 The Prime Directive 301
7.5 The Prime Directive
Parents, wives, friends of the 24th MAU [Marine Amphibious

Unit] Marines began their vigil—anxiously awaiting the casualty
lists. Many old Marines, and young Marines, too, wept bitter
tears of rage, frustration, and sorrow at the tremendous and
senseless loss of life.
—Benis M. Frank, military historian and U.S. Marine
America will not pretend that jailed dissidents prefer their chains,
or that women welcome humiliation and servitude, or that any
human being aspires to live at the mercy of bullies.
The appeal of the science fiction genre lies in the exempt explo-
ration of our own potential. The distinct context of a futuristic
world liberates an impartial analysis of human social issues. This
is the bread and butter of Star Trek. We could learn a few things
from the fictional saga. Primarily, we could learn about—too
obvious, really—the Prime Directive.
If you're not a fan of the show, you might be skeptical. Have I
let you down yet? The always paraphrased Prime Directive stipu-
lates military personnel of the United Federation of Planets, the
space-ship society of the home team, will not interfere in the
natural course of a primitive society denoted by the absence of
transstellar space ships. Basically, the difference in technical
sophistication is too great for a mutually healthy partnership.
Observe in your mind how the differences if wholly technical
would be trivial. It would be like rescuing a compatriot stranded
on an island.
The Prime Directive has real-life application. Please permit me
the latitude to reformulate the Prime Directive for planet Earth at
the dawn of the 21st century: We don't maintain economic or
otherwise strategic relations with derelicts and nitwits. Either
people have human rights in their hearts or they don't. Democracy
is secondary to, and if done right, symptomatic of human rights. It
is a philosophy and culture implemented approximately as repre-
sentative government. The gap of dissimilarity is regulated by the
sizes of the peasants' brains and testicles.
Democracy represents the best of the known forms of govern-

ment; it is not intrinsically a good form. An ignorant vote is not
worth an informed vote, even if at times it luckily has net positive
value. If you don't have the right stuff but have fortunate citizen-
ship, do us a favor and solely embrace having the right proper.
Representation does fix one foible of democracy. We can't take a
vote for every human action. We are individuals living at the
speed of life.
The Prime Directive respects that the quality of our dance part-
ners count. Getting an appraisal from the U.S. Government at the
moment is easy if you ignore the politicians and take the slightest
initiative. I'll even show you how by investigating a random
country from the comfort of my computer. I'm reaching into my
hat with one folded paper. Opening—‘Saudi Arabia’. Oh, and the
fine print has ‘UAE’.
My findings reference Web information accessed 2 January
2007. Our first stop will be the Country Studies portal by the U.S.
Library of Congress. I trust you to access the main page with a
Web browser. Once there, select the country ‘Saudi Arabia’. I
found an outline linked to other Web pages. I also found a link to
an updated profile as a PDF file. Using the hyperlink outline, I
went to the section ‘Government and Politics’. The description of
the Saudi Arabian Government starts: “Absolute monarchy that
based legitimacy on fundamentalist interpretation of Islamic law.
King [is] head of state and head of government; no written consti-
tution or elected legislature.” I'm sorry if the f-word offended you.
Please note from the bottom of the Web page the information dates
from December 1992.
The updated profile from the PDF file dated September 2006
does not use the word ‘fundamentalist’ anywhere. On page 19 it
starts the corresponding, revised section: “Although some demo-
cratic reforms have been implemented, Saudi Arabia still operates
as a near-absolute monarchy.” Three sentences later it says:
“Nevertheless, the king does not have unfettered power.” Pressure
for genuine reform may be achieving a slight effect. After skip-
ping two more sentences about Basic Law established in 1993 it
reads: “The Quran and sunna (Islamic custom and practice based
on Muhammad's words and deeds) are the state's constitution, and
both the government and the society as a whole dismiss the notion
that separation should exist between church and state.” Okay, mull
it over. On page 27 a description of human rights begins: “Munic-
7.5 The Prime Directive 303
ipal elections have not abated concerns that the royal family holds
too much power. The report finds that internal security forces
have committed various human rights offenses, including torture
and abuse of detainees, arbitrary arrests, and intimidation of non-
Muslims and foreigners.”
I am interjecting here something I found on pages 61–64 of
Newsweek, Vol. 105, No. 7 (18 February 1985): a four-page ad
from the Saudi Government touting how ‘cooperation has helped
Saudi Arabia and the United States grow together.’ It's quite the
entente after the oil embargo of 1973–1974. The final paragraph
of the ad's text reads: “Today, Saud Arabia is a modern nation,
growing with a clear vision of the goals ahead, guided by the
wisdom of His Majesty King Fahd.”
Now let's virtually head over to the Central Intelligence Agency
(CIA). I am still describing my findings on 2 January 2007. The
CIA has an online reference called The World Factbook. Navi-
gating within the 2006 edition, I accessed the entry for Saudi
Arabia. At the top is a picture of the Saudi flag. It links to a
description of the flag. The field is the traditional Islamic color of
green. The Shahada (Muslim creed) in white Arabic script is the
top device. The CIA translates, “There is no god but God;
Muhammad is the Messenger of God.” Below is a saber. Are you
mulling? The Afghan Republic's flag incorporates the Shahada
and a mosque but no weaponry. The Iranian flag is left as an exer-
cise for the reader. The central tenet of Islam is denoted by its
Arabic name, literally meaning ‘submission’. Shari'a is Islamic
law and literally translates from Arabic as ‘pathway’. Shari'a regu-
lates the religious, political, social, and private aspects of Muslim
life in dutiful submission to God. Typical usage of the term
‘moderate Muslims’ in the West, endorsed by Western media,
glosses over the supposition that the essence of Islam can be, and
some Muslims and their form or forms of Islam have been, durably
moderated by Westernism or anything else.
Next stop, the U.S. Department of State. They have an online
reference called the Country Reports on Human Rights Practices.
I am looking at the entries on Saudi Arabia and the UAE in the
2005 edition. I am also looking at a transcript of President Bush's
second inaugural speech of January 2005. This subchapter ends
with comparisons between those government sources by row in
table 7.1.
Table 7.1 Comparative Quotes from U.S. Government Sources
George W. Bush Dept. of State on Saudi Arabia Dept. of State on UAE
The leaders of governments with long The repercussions of the March 2004 The constitution prohibits arbitrary
habits of control need to know: To arrest of the 12 political reformers arrest and detention; however, there
serve your people you must learn to (and the subsequent arrest of the were reports that the government held
trust them. Start on this journey of lawyer for the three that stood trial) persons in official custody without
progress and justice, and America will accused of signing a petition calling charge; and that the government
walk at your side. for the implementation of a constitu- charged individuals but denied them a
tional monarchy among other things, preliminary judicial hearing within a
and the long, drawn out appeal for a reasonable period. The law permits
public trial, discouraged the submis- indefinite incommunicado detention
sion of additional reform petitions. without appeal, and in one case the
government held a prisoner incommu-
nicado for several months at least.
So it is the policy of the United States Political detainees arrested by the Traditional rule in the emirates gener-
to seek and support the growth of internal security service were held ally is patriarchal, with political alle-
democratic movements and institu- incommunicado in special prisons giance defined in terms of loyalty to
tions in every nation and culture, with during the initial phase of an investi- the tribal leaders, to the leaders of the
the ultimate goal of ending tyranny in gation. This period may last weeks or individual emirates, and to the leaders
our world. months under the [Ministry of Interi- of the federation. There are no demo-
or's] broad legal authority. cratically elected institutions or polit-
ical parties.
304NNNNNNNNxrrr7.xiRESTORINGfSANITYfTOfPOLICYNNNNNNNNNNxxrr
Table 7.1 (continued) Comparative Quotes from U.S. Government Sources
George W. Bush Dept. of State on Saudi Arabia Dept. of State on UAE
All who live in tyranny and hopeless- During the year the religious police Domestic abuse against women was a
ness can know: the United States will (Mutawwa'in) harassed, abused, and pervasive problem, with one study in
not ignore your oppression, or excuse detained citizens and foreigners of February indicating that as many as 66
your oppressors. When you stand for both sexes. percent of all women permanently
your liberty, we will stand with you. residing in the UAE had been
subjected to domestic abuse.
NNNNNNNNNNNNmmii7.5xiThefPrimefDirectiveNNNNNNNNNNNmr305
7.6 Treasonable Test of Democracy
Wake up, America. Your democracy is disappearing.

—Representative Dennis Kucinich, D-Ohio, 10th
The U.S. Constitution for its purposes defines, “Treason against

the United States, shall consist only in levying war against them,
or in adhering to their enemies, giving them aid and comfort.” A
translation of the Quran 4:89–90 is:20
They but wish that ye should reject Faith, as they do, and thus be
on the same footing (as they): so take not friends from their ranks
until they flee in the way of Allah (from what is forbidden). But if
they turn renegades, seize them and slay them wherever ye find
them; and (in any case) take no friend or helpers from their ranks
—except those who join a group between whom and you there is a
treaty (of peace), or those who approach you with hearts
restraining them from fighting with you as well as fighting their
own people.
Upholding financial mechanisms designed to pump our money
into societies that condone or sponsor attack, or that inspire retalia-
tion against us I hope raises concern. The definition of treason is
not so clear and not so discussible when the threat comes from
within our own government. The effect is clearly no less
hazardous.
If the United States is faithful to democratic values, what theo-
retical distinction can there be between the people and their
government advertised to be of, by, and for the people? Therein
lies a virtuous test of democracy. Does the identity of a nation
belong ultimately to government enabled by a national elite or to
government chartered by the people? To whom does the national
injury of treason belong should there be a conflict?
20 The Quran is necessarily a revelation in Arabic according to orthodox
Muslim view. The Arabic Text is in a rhythmic style said to represent or be
an emotive symphony of which the phonetic sounds alone move men to
tears and ecstasy. The verses or āyāt of the Quran are terminated by
connective rhyming words, and sentences sometimes span the division
between two verses. The counting of verses is the subject of the Quranic
science ihsā'. Qurans and translations of them sometimes differ in the
demarcation of verses. The numbering of the 114 chapters or sura of the
Quran are without complication. Thus, the Quranic citation shown in the
text and Quranic citations generally are uniform in chapter numbering but
may vary with respect to verse numbering.
7.6 Treasonable Test of Democracy 307
We acquiesce to the lingo of earmarking, special interest, and

government fraud. It is corruption! It is betrayal of the American
people! It is your degraded physical and mental condition! It is
your neglected share of sovereignty once again marshaled by aris-
tocracy! Are the holders of high office public and private properly
less subject to capital punishment than the rest of us? Is a nary one
not the utter criminal in several key social circles? How many lost
lives, arms, legs, and brain functions? How many extracted man-
hours? How many forgone physical means? How many unreal-
ized social relationships and kindnesses among ourselves? How
much stifling of personal achievement and enrichment?
7.7 Drivers Wanted
Given an island secured by a navy, given a Crown dependent on

parliamentary revenues, given a people impatient of injustice and
unhappy at constraint, given a succession of Kings inept at
governing and insensitive to the wishes of their subjects, and
given a race of politicians eager to secure office by proving that
they could govern in the Commons, no other result could be
expected than a struggle for the sceptre that would issue in the
eventual triumph of responsible government.
—Clayton Roberts, historian
Some people drive as if the first one to the collision wins. Some
people drive as if breaking and stopping within any intersection is
synonymous with safety. Some people drive as if taking the time
to stop and waive a pedestrian across without holding a line of cars
at bay is somehow nicer than simply continuing out of the way
without materializing the hitch. Street-corner Pharisees of the do-
goodism school! As I sit indoors on an upper floor with the
windows open, an emergency vehicle is going by and giving me a
headache. It seems to me the rule of thumb in our society is that
more decibels equal more compliance, more goodness. I have
been lumped in with the misfits who don't get out of the way. And
now a special message to whom it may concern: A car horn is not a
door bell, mental invalid! Your cell phone is a door bell, lazy, fat
American.
In many States the law requires drivers to turn their headlights
on if their wipers are running. Legislation that assumes and
encourages driver stupidity is counterproductive to making those
who drive drivers. It would be better to recognize that driving
without headlights turned on is sometimes reckless according to
the circumstances, that is, as determined by judgment not prognos-
tication. Remember that thing called judgment? It's the difference
between drivers and nuts behind the wheel. It's the difference
between vitality and ineptitude. Drive to be seen and you will see
to drive.
7.8 Well-defined Freedom Rings 309
7.8 Well-defined Freedom Rings
Tzu-lu said, “If the Lord of Wei were waiting for you to come and
administer his country for him, what would be your first
measure?” The Master said, “It would certainly be to correct
language.” Tzu-lu said, “Can I have heard you aright? Surely
what you say has nothing to do with the matter. Why should
language be corrected?” The Master said, “Yu! How boorish
you are! A gentleman should maintain an attitude of reserve with
regard to what he does not understand. If language is not correct,
then words are not appropriate; and if words are not appropriate,
then deeds are not accomplished.”
—Analects 13:3, a supposed dialogue with Master Kong
(or K'ung), a.k.a. Confucius
America's debate about freedom hinges upon its very definition

and invariably entails the concept of morality. Morality is a
domain claimed exclusively by religion, really religions. The reli-
gion dominant in the United States has been and is Christianity. It
follows the morality of Christianity is the morality that made
possible America's shining example of freedom to the world, that
shining ‘city upon a hill.’ However, the countries south of the Rio
Grande can claim a cultural heritage heavily steeped in Christian-
ity. Specifically, it was state Catholicism. French Catholicism in
Quebec is the only other American (as in the Americas) legacy of
Catholicism with nationalistic ramifications. The British tempered
rather than obliterated the French autocratic-papalistic agency, and
culture, in the St. Lawrence Valley after the French and Indian War
(1754–1760). The French themselves mutilated the domestic core
of the same agency a few decades later. Bluntly speaking, the
strongman mentality has dominated culture south of the border.
The moral difference to the north was not Protestantism; it was
Protestantisms. The cruciality is best demonstrated by a compara-
tive history of the four principle progenitors of American nation-
hoods.
The English excised tyranny of church and state in the body of
Charles I on 30 January 1649. In 1660 after experimentation with
government controlled by the former General and late Lord
Protector Oliver Cromwell, the monarchy of England, Scotland,
and Ireland was peaceably restored to the late King's son made
Charles II, but the experiment was still alive, still plodding. The
French dispatched Louis XVI on 21 January 1793, but the same

totalitarian ilk festered in the aristocracy and the papal clergy. The
French in France had nothing like English plodders or American
Founding Fathers. French revolutionists dismantled the ancien
régime but were totalitarians themselves. Liberté however insub-
stantial yet permeated French culture and spread to other European
regions where Napoleon bowed hereditary privilege. The differ-
ences between English and French cultures were salient for the
liberal similarities that set them apart. Of interest here are the
similar distinctions with contemporary Spanish and Portuguese
cultures that esteemed rigid reassurance in secular and religious
uniformity. The following chronology is instructive: English Civil
War (1642–1648), English Revolution (1688–1689), American
Revolution (1775–1783), French Revolution (1789–1799), prelude
to the Spanish Revolution being the first two attempts at constitu-
tional monarchy (1810–1814, 1820–1823), Portuguese Revolution
(1820–1851), and Spanish Revolution (1833–1876).21
The comparative history ranks the talents of the major colo-
nizing powers for experimentation with more accountable govern-
ment, certainly in terms of precocity and reconcilableness, in three
descending groups: the British, the French, and together the
Spanish and Portuguese. The comparative prosperities of the
emergent legacy nations of America form the same ranking. The
comparative participation in the Enlightenment separates the
French, English, and Scottish from the Portuguese and Spanish.
Duly considered regicide by demonstrative decapitation separates
the English and French from the Scottish, Portuguese, and Span-
ish. Comparison of European (and world) imperialisms must
admit meaningful fruit of the British and French varieties: the
British Commonwealth of Nations and the French Community (La
Communauté). In 2007 the Queen of the United Kingdom was
simultaneously the Queen of Antigua and Barbuda, Australia, The
Bahamas, Barbados, Belize, Canada, Grenada, Jamaica, New
Zealand, Papua New Guinea, St. Christopher and Nevis, St. Lucia,
21 The Portuguese and Spanish Revolutions are defined here in a way analo-
gous to the French Revolution: from the onset of political instability to the
onset of political stability accompanied by the overthrow of autocratic
monarchy. The period of the Spanish Revolution is from the First Carlist
War (1833–1840) to the concordance embodied by the Spanish Constitution
of 1876 that defined a constitutional monarchy. Symbolic of the first two
attempts at constitutional monarchy was the Spanish Constitution of 1812.
St. Vincent and the Grenadines, Solomon Islands, and Tuvalu.

Loyalty to the British monarchy spans the globe in the 21st
century!
The 13 English colonies that formed the United States of
America had at least two ‘orthodox’ Protestantisms by denomina-
tion, Anglicanism and Puritanism/Congregationalism, and several
‘state’ churches by several colonial authorities. The first Great
Awakening (circa 1725–1770) created a free market of Christianity
driven by individual choice. The strength of this diversity, if there
ever is in diversity alone, was the pervasive weakness that under-
mined state church and dogma regnant. The Christian revolution-
aries could not agree on a state-church framework. Christian
diversity played into the free market of religious ideas described
by Adam Smith's Wealth of Nations (1776).22 Whereas a domi-
neering preacher offered prayer, penitence, and self-reflection after
the fact, Benjamin Franklin offered a lightning rod beforehand.
Freedom of conscious was the strength of deism, the Enlighten-
ment, and the Founding Fathers. What made America great and
gave America a great morality is bottom-up authority. Isn't that
ultimately what freedom is? Freedom is not merely the diamet-
rical opposite of slavery. Both positively require the construction
of civilization, social-minded discipline, and so constraint on
freedom itself. Absolute freedom for a mortal is exposure to hot,
cold, sun, rain, snow, harsh land formations, dangerous animals,
disease, and hunger. The only way around this is the temporary
but possibly life-long charity from or abuse of thy neighbor's
means, with the wholesale proclivity toward primitive, all-natural
freedom coming as a bonus. Mortal freedom requires strategic
‘unfreedom’; it's called discipline. We can't perfectly play the
hand we are dealt by striving for omnipotence. Our responsibili-
ties are otherwise. Bottom-up authority is the vital essence of the
Enlightenment and the critical aspect of the social heritages north
of the Rio Grande.
The potencies and proportions of British and French legacies
evident by nationhood seem to be no accident. The British first
had their English Civil War and Glorious Revolution, and they
22 The citation with full title is: Adam Smith, An Inquiry Into the Nature and
Causes of the Wealth of Nations (1776). The relevant portion is book 5, “Of
the Revenue of the Sovereign or Commonwealth”; chapter 1, “Of the
Expences of the Sovereign or Commonwealth”; part 3, “Of the Expence of
public Works and public Institutions”; article 3, “Of the Expence of the
Institutions for the Instruction of People of all Ages.”
retained their stiff upper lips. The American Revolution was rather
clean and successful. The French Revolution was rather messy but
not long forestalled. The best known form of government is func-
tionally a vigilance committee. No you can't substitute the
authority of the people with something safer any more than you
can make poop a sparkling diamond by foregoing pressure.
People learn by doing. Smart people learn from what has been
done in history. Perennially ignorant people make good fertilizer
at best. Spread republican polity and democratic spirit thin enough
for diversity's sake, and you might not have something there.
Freedom has a wholesale sophistication requirement. Religious
freedom in America means conformance of religion to a pluralistic
framework, to a free market of ideas spiritual and otherwise, and
to strategic unfreedoms. American greatness is freedom of choice
within responsible bounds; it is freedom from tyranny for a
deserving people. American greatness is not the paternalistic
opposite. It is not the freedom from impurity or really the safety
of purity—essentially the freedom of ease or sloth. Struggle is
encoded into this world. The American Dream is unpatentable and
nontransferable. It is consummated but customizable, specific but
imitable, a gift each nation gives itself in its own name or not at
all.
Because freedom requires sophistication, freedom requires
morality. Deism and rationalism teach that morality is objective
and learnable. Theism teaches morality is revealed. It is the
combination of admissibility and revelation that makes theism so
potentially dangerous. The vitality of revealed religion is obvi-
ously its uncompromising authority. It's longing expression is
theocracy. It is naturally superior to the polity of Western liberty
and prosperity, or it is convenient, or it is unbelievable. Religious
prescripts untempered by Western human rights of the last few
centuries—something imaginable of prescripts from God—need
not play ‘free-market’ nice once acquiring the upper hand and your
throat. The literalistic simpleton handling poisonous snakes
according to Mark 16:17–18 is neither your enemy nor beyond one
moment's thought your business. I emphasis one moment's
thought. The beliefs of literalistic simpletons are your business
because they are without safeguard. Their beliefs may offer you
salvation on your terms. Revelation that is not truly the Word of
God has feet of clay if it expresses any supernatural invariants on
earth. The Chinese of San Francisco's Chinatown became Chinese
Americans roughly with the demise of the last Son of Heaven.

Yes, orthodox Confucianism was not a revealed religion, but China
through the emperor had been effectively ‘under God’ at the
pinnacle of mankind. Destroy the earthly invariant and the fallacy
will resound. Let freedom ring!
7.9 Closing Remarks
Across the generations we have proclaimed the imperative of self-

government, because no one is fit to be a master, and no one
deserves to be a slave.
I sincerely hope the ending of this book is a beginning of enriching

discovery for you personally and us as a society. Be advised my
remarks of this subchapter are indulged the freedom of loose opin-
ions rather than the discipline of tight rationales. To you I pass the
baton of civilized cognition. It cannot be held until a germ of
consciousness has illuminated the wilderness of existential firma-
ment within. Construe as you like; believe what you will:
(1) Perception is reality because mental existence is not
physical existence. The latter pair is imperfectly coupled by
sensory perceptions and motor skills. Sensory perceptions are
inputs to the mind. Motor skills of the body are outputs of the
mind, evident by sensory feedback. We presumably share a
context of existence in the physical world. Yet, our living expe-
riences are entirely perceptions in our minds. The mental
context of existence is not shared. Each mind is isolated except
for interpretations made from the medium of the physical
world. The connections between minds are indirect and inex-
act. The impossibility of correlating absolute physical truth
with absolute psychological truth makes humility a virtue (to a
point). This is a world of mortality. Perfect for mortal beings is
not about omnipotence; it is about harmonizing one's inner
nature with one's outer context for the short time alloted. One
side of reality is no more or less relevant than the other.
Physics is no more or less real than mathematics. Physics is
nothing without mathematics, and physical reality is nothing
without abstract existence or self-awareness or spirituality. A
bug's opinion on this matter would be no less nonsensical than a
rock's. So the laws of the universe are not solely physical.
Some are categorically mental, and if you violate them you will
be working against ‘gravity’. Mental reality is discovered, not
engineered (by us). Study Freud's derivation of psychoanalysis
sometime. By the abstract power of existence somehow alive
in the human brain (and why not other mammalian brains of
7.9 Closing Remarks 315
considerable size and similar structure) one is able to distin-

guish items. Barely more advanced than that is the ability to
count. Barely beyond that is the power to add. And subtract.
To multiply is as simple as 3 groups of 4 adding to 12. Next
comes division, exponentiation, blah, blah, calculus, blah, blah,
Fourier transforms, etc., etc. That's the reality of the thing
called life. We can only fumble our way to greater under-
standing in our natural world. It is impossible to absolutely
correlate absolute truth, physical or abstract but natural, with
absolute psychological perception. Give study its due and don't
believe your perception is absolutely consistent with the
universe. That would be impossible with only natural means.
Humility to a certain degree is a strength.
(2) Slavery and serfdom are antiquated institutions of social
evolution like superlative religion is becoming. The successful
totalitarianisms of the Amerind societies of the highest echelon
—that is the Aztecs, Incas, and Mayans, all practitioners of
human sacrifice—suggest oppression of the human tool offered
a critical leverage for preindustrial development. To grow from
subsistence farming to the empowerment of specialized sophis-
tication, the new roles and relations initially had to be static.
Mercantile and industrial mechanisms could only be inequitable
at first. A dynamic, adaptive, and merit-based implementation
of society is far more difficult. Just try understanding, main-
taining, and deserving it sometime. (Your reading now is the
part about understanding.) Technology is the driver of society
in toto and morality must keep pace or become destructive.
If religion is an absolute, supreme and comprehensive belief
system, the requisite Word of God is not offered as a buffet.
Believers must accept the absoluteness, notwithstanding how
superlative religion varies like society with time and geography.
Believers must accept the entire Word of God. They must
believe in slavery if that is the Word of God. They must believe
in violent imposition of their religion if that is the Word of God.
Otherwise, professed believers of superlative religion treat the
Word of God as a spiritual buffet. Contrived selectiveness
becomes the self-appointed, lone, tenuous guard on probity that
can only habitually fail with a substantial population of practi-
tioners over the long run. Today the practice of superlative reli-
gion is a psychological fabric that breeds oppressive social
institutions. Shocking. It gets worse. Chaste, leftist cultism is
ostensibly secular, but it is an engineered religiosity. It is not

the intrinsic culture of an oppressive institution. It is the propa-
gandistic fodder culture from an oppressive institution. Its
fundamental precept is a lie. Multisubculturalism is not multi-
culturalism. The latter is the terminal disease of a not-long-to-
be-free Western society.
(3) The psychologically degrading ideologies of American
slavery—one for masters, one for slaves—survive in symbiotic
self-righteousness and vitriol approaching 150 years since
Abolition. American slavery's bi-cultural legacy of ill function
is the thriving Middle Eastern microcosm in our very own
backyard. You will notice poverty has plagued both the white
South and the black ghetto over the past 100 years. The Voting
Rights Act of 1965 was renewed in 2006 for another 25 years.
White, Southern culture still harbors an impractical self-worth
based on irrelevant, unmanageable comparisons rather than
internal absolutes. Those who waive the Confederate flag espe-
cially don't have the patent on American patriotism. American
greatness has taken and will take many forms. Black American
culture continues to harbor a self worth from victimization and
continues to practice the art of passive resistance by ineffective
labor. As emancipation means freedom to reap one's own labor,
not freedom from labor itself, those who presume otherwise
defeat themselves. Circumstantial evidence suggests to me that
blacks in the United States have been the richest blacks in the
world for the last 100 years or so. The indigenous ineptitudes
and injustices within sub-Saharan Africa go unnoticed. Euro-
pean powers shed their black and red burdens with their
colonies. Only the American legacy of black enslavement, in
fact of any event in black history, ends with widespread black
affluence by European white standards, the greatest standards
ever devised. Black American history has a context in black
world history, but you wouldn't know it from the academics or
media. It is silly for black Americans who admonish black
Americans for acting too white to expect results comparable
with white Americans who obviously have different values like
wearing jeans that fit and speaking grammatically correct
English.
I am not suggesting blacks should model themselves along or
after insecure, racist whites who are allergic to libraries. I am
declaring that discrimination has been falsely represented as
generally wrong. Just what inferior values shall I meet

halfway? Not only is discrimination justifiable, it is essential to
survival and prosperity. Each one of us has the herculean task
of fulfilling her own life. Since everybody else is busy, the task
starts inside. The selection process that natural law imposes on
content of character is something good enough for everyone.
Corruption and welfare dependency destroy the healthy correla-
tion of what we sow with what we reap. As the embodiment of
our values and our culture, we define a particular social bias
from the grave capacity to favor success and failure alike.
(4) I purposely have not used the pretentious term African-
American throughout. If you think I should, please refer to me
as Un-Asian Caucasian-American. I hate being confused with
Asian Caucasian-Americans. Most of them have not had
decent government since the Mongol Empire. Regarding
certain Caucasians, the terms ‘slave’ and ‘slavery’ are an insult
to Slavs everywhere, but they don't have the courtesy to notice.
From now on the politically correct terms are ‘africane’ and
‘africanery’. I must reject the use of ‘african-americane’ and
‘african-americanery’ because many places of blacks' enslave-
ment (for example Cuba, Jamaica, Brazil and the Middle East)
were and are pretty much external to the United States of Amer-
ica. We could have had Cuba. Maybe this century.
(5) Ethnic Studies. What cultures define themselves as
ethnic in a segregative way? The same ones that perceive
themselves to rightly be the fringe of humanity: none. What
odious alien presumption of perspective! So what is this
academia of Ethnic Studies doing? Fixing the zealotry of the
dominant home culture? The danger of its own zealotry is a
progression of no standards, no structure, no society, no
academia, no means, no freedom, no survival. ‘Aggrandize-
ment-of-Fringe-Culture Studies’ is necessarily manipulative, at
best demeaning, and at worst betrayal. A wise person improves
herself; the fool chides the design of man and nature. To appre-
ciate foreign culture, for what it is and what it is not, one must
consciously and conscientiously set aside native culture—not
homogenize the two.
(6) There has never been a great black nation. The greatest
black civilization has been Ethiopia. There has never been a
great Hispanic-American nation. There has never been a viable
feminized civilization. Amazon women are a historical myth.
Western women have decided the values of all cultures are the
same. Western women have decided that democratic, capital-
istic nationalism of the First World is neither superior to civil,
barbaric totalitarianism of the Second World nor the animal-
istic, savage tribalism of the Third World. Neurotically, these
creatures are driven to protect themselves from manhood by
alternative fulfillments, by weakening or acquiring all manly
advantages, and by forging a family of humankind in which the
domestic goddess is king. American women have fostered
within the United States the multiplication of Third World
savages residing in a formerly First World nation, enjoying the
subsidized living standards of Second World ghettos, and
having the audacity to be indignant.
By deciding all worldviews are equally valid, Western
women have assumed any ignoramus has the capacity to have a
worldview at all. What a dumb, feminist term worldview has
become. Hint to broads: a view of your world is not a view of
THE WORLD. Without barter or capitalism, everything you
dependably take but don't make must be stolen. Charity and
voluntarism, being innately unverified and undependable, are
supported by success not supportive of success. Their misap-
plication to socioeconomic fundamentals is lubricated by a
sensual gravitas afflicting blithering converts. The first social-
ists, of the 19th century, had the exoneration that the evils of
plutocratic capitalists had yet to be solved and that the good of
socialism had not yet been disproven ad nauseam by history.
Twenty-first-century socialists indigenous to the First World are
utter and utterly programmed fools. You can make capitalism
bad, but you can't make socialism good. If you wish to elevate
the collective good, produce without consuming: enslave your-
self first. You can't make charity dependable, so you can't make
it the basis of a civilizing economy, only the basis for transition
to a global totalitarianism. You can't make a man out of a broad
either. Women should be free to pursue their individual ambi-
tions politically and otherwise, but a woman's vote should have
less weight than a man's for the sake and good of humanity.
Not all good is or could ever be common. When we retire our
names, I will wholeheartedly advocate absolute socialism.
When we retire our sexual characteristics, capabilities, and
urges, I will wholeheartedly advocate trans-sexual egalitarian-
ism.
(7) Your individual reputation is an assessment of you. Your

stereotypical reputation is an assessment of people who share
your outward appearance. You tend to deserve and dominate
your individual reputation. You deserve the stereotypical repu-
tation the majority of people outwardly like you justify. If you
don't like it, cultivate an extraordinary individual reputation,
improve your outward appearance, or upgrade the substance of
your ‘friends’. The stereotype you have is not your right; it's
mine. A free people have the right and all people have the need
to discriminate in the private sector and in their personal lives.
Society is a team sport, and there's no ‘i’ in team.
(8) Who came up with the sick idea that good people have
only happy thoughts? If you only have happy thoughts, your
mind is playing with only a half deck of mental cards. Who
came up with the idea all feelings are equally viable? They are
not. Some feelings are incompetent. If you harbor that kind,
get new ones. Life will not meet your mind halfway. The exis-
tential uncertainty of life is no excuse to dispense with objec-
tivity, the hard work of study, or personal reflection.
Uncertainty is the raison d'être of objectivity. It cannot and
does not excuse the purge of harsh and disparaging words from
our vocabulary. Competency in life sometimes requires words
and deeds that are harsh and disparaging. Harsh words do not
always signify harsh meaning and effect.
(9) Protect the Internet. Even with the warts of pornography
and pedophiles, it is a powerful tool we the people should cher-
ish. Sharing is an intrinsic responsibility of Internet communi-
cation. Intellectual property there has a natural definition less
stringent than in privately controlled channels. The legal treat-
ment of the Internet requires a new sophistication. Some
patents of Internet technology are ridicules. Please don't send
me email with copyright boilerplate and obtrusive legal obliga-
tion. It's my inbox like it's my mailbox: it's more about me than
about you.
(10) Before paying federal income tax with graduated (and
progressive) tax rates from 10% to 35%, we pay 15.3% as
Social Security engineering on the same income. Employers
pay half of the Social Security taxes on your wages, but that
payment must be factored into your lower wages. The baseball
fan who came away from the ballpark with the 756th home-run
ball of Barry Bonds had to sell it because of tax liabilities: it
went for $752,467. The taxes in the United States are reprehen-
sible. Reprehensible taxation elsewhere does not change that
fact. We don't want elsewhere. What deserving American
would not have a better idea about taxation?
(11) Those dependent on government welfare do not deserve
the dignity of independent living. It is an unhealthy reinforce-
ment for all of us. Subsistence of the impoverished in a
stopgap communal facility is one thing. Pacification of vigor
with private housing, television, etc., what is a semblance of
dignity and success, is quite another. It smacks of buying votes.
After the political usefulness of the drove's bought lives is over,
it's over. Their dead-weight failure transforms a social safety
net into a totalitarian snare reaping labor and liquidating liabili-
ties. Democracy has an invariant of responsibility with the
people. That invariant works because it parallels natural law.
Yet the pitfall of welfare success remains, for our kind deviance
from natural law. Welfare recipients could each be excluded
every decade on a dispersive, rotational basis from one midterm
election of Congress and one full election of both Congress and
the President. Three-fifths representation based on slavery is
obviously wrong. Based on institutionalized dependency of the
legally free, it might be just right. It is nothing rash to fully
exclude the fully institutionalized felons, retardates, and
lunatics, isn't it?
(12) Once I called a shipping company to move my stuff. I
was told by the phone operator's supervisor they could not
move my stuff for the fact I was moving. Apparently, there was
some law eliminating the method for my moving needs. I
resent the imposition of an expensive business model on my
affairs. At Ground Zero a fellow American brandished a
weapon at me to prevent my taking a picture of the ‘crime
scene’. It was a crime against all of us. It was our prime
acreage in our city: don't let simpletons tell you there is no
social expectation of stewardship with property rights, free
enterprise, etc. as if there is no expectation of stewardship with
democracy or of civilizedness with civilization. Protect your
right to enjoy the city without getting killed! Good U.S. citi-
zens watch how the government handles terrorism. Covert
forces inexplicably splashed the same crime scene all over my
television. Small abuses of our freedoms are small as incidents
but large as precedents. Be offended! I am offended!
(13) It used to be that books were rare and expensive. Only

children of the rich necessarily got an education. Under those
circumstances, government alone could bring childhood educa-
tion to the masses. (The postal system is analogous.) Today,
successful homeschooling is proof that government implemen-
tation is no longer the only option. The centralized control of
education during the formative years (K-12) should concern
you at the least. Not only is government shaping the minds of
children who have parents lacking wherewithal, and probably
the majority of young minds, so too is the National Education
Association (NEA), a lobbying juggernaut in all 50 States with
a membership of roughly one percent of the U.S. population,
give or take an illegal. In 2004 the Secretary of Education Rod
Paige called the group a ‘terrorist organization’.23 A teachers
union can strike without fear of subverting public school
systems. Public teachers must enjoy high property taxes.
Market forces would revitalize education with standards, ferret
out useful curricula, and permit useful diversity. Parents and
educators would have greater freedom to constructively
disagree and responsibility for the results. Teaching methods
would be put to the test, and success in all its various formula-
tions would be encouraged.
As you may have surmised, freedoms and market forces cut
both ways. To actually reward schooling standards means there
will be difficulties not within the province of schools to solve
23 The NEA Web site is at http://www.nea.org. On 1 August 2007 the site
claimed a membership of 3.2 million members. Large labor unions are
required to file reports that we can access online from the U.S. Department
of Labor's Employment Standards Administration (ESA). In February
2009, the portal Web page was accessible at http://www.union-
reports.dol.gov or http://www.dol.gov/esa/olms/regs/compliance/rrlo
/lmrda.htm, the former URL redirecting Web browsers to the latter. The
2008 Labor Organizational Annual Report (LM-2) for the NEA's national
headquarters, found by searching on the ‘NEA’ entry and the union type
‘international’, is file number 000-342, as it is for the same entity's LM-2
reports of prior years. That fiscal disclosure report for the year ending
August 2008, as accessed 12 February 2009, showed a membership of
3,215,904, total disbursements of $343,704,653, divers staff salaries, and a
list of grant recipients. On the ESA website a table summarizing the yearly
LM-2 reports, besides having links to those reports, showed instead total
disbursements for 2008 of $343,704,649. If you browse the Web for infor-
mation about the NEA and its grant recipients, you might perceive a sophis-
ticated lobbying effort for more government spending on public education
sprinkled with activism for left-wing egalitarianism.
but rather to dismiss. Learning deficiencies will sometimes be

intrinsic to child and family. Some children merely need disci-
pline that parents are responsible to provide and that schools
used to provide in loco parentis until slime lawyers—excuse
me, slime attorneys—gave children the means to make destruc-
tive personal policy decisions. For teens dead set on adult
delinquency, employment in the adult world for a year could
rehabilitate a wayward youth if done well. A fix beyond disci-
pline, something parents worthy of procreation can provide, is
social work and far afield of schooling. The nasty truth is that
some children and the legacy of some parents should be left
behind. Opportunity is something to share with your fellow
citizens. Independence is something to share with your fellow
citizens. Personal failure is not.
(14) Capitalism is not capitalism without the unvarnished
truth in the market. You are the market! Without accurate
knowledge, you cannot manage your assets, your welfare, your
sovereignty. Economic knowledge is economic power, and
economic power is freedom—for those who have it. The acqui-
sition of Dow Jones by Rupert Murdoch in 2007 is a critical
knell, a critical concentration of media power. Robber Barron
Jay Gould had media power. Ask not for whom the bell tolls.
(15) Granted that employees do not deserve as large a share
of prosperity as employers. However, employees do the unflat-
tering jobs and deserve a share of the success. Real income
languishes behind real GDP because the gains of our economy
are not shared. They are generally available less and less. Why
settle for a meager reward when you earned a substantial one?
Oh, because we don't know better. But we feeeeel like such
good people. As technology marches on, so does the responsi-
bility for civic sophistication.
(16) Individual (elemental) fairness means nothing; socio-
logical (systemic) fairness means everything—productivity,
innovation, harmony, peace—and a social system, like any
system, has limitations, requirements, and boundaries. Heard
on television (May 2007) we the U.S. need 1.4 million addi-
tional laborers. What's this we manure, white man? Do we
believe in democratic principles or not? Who among us
partaking of our economy are too privileged to bear the burden
of economizing? Our dynamic market economy is the system
that enforces a distribution of economizing in this ever
changing world. When jobs are scarce and wages are low,
employees must economize. How is it that employers need not
economize? Just who are the ‘we’ that need the expanded
economy regardless of costs to wage-dependent citizens? Is
posterity, however derived, more deserving than those of the
here and now? Is a greater and more robust economy the
paramount concern? If so, then a slave economy is the best
economy we can have. All slaves hail the maximized GDP!
(17) If wages are rigged to be unnaturally low, then
removing the rig will raise wages and thus prices. You will be
told how dangerous the inflation is. That kind of inflation
would be bad for the employers who would get less in real
terms, a smaller share of the economic pie. Employees would
get more like they should have been getting all along.
(18) A century ago, immigrants daily risked their lives and
the lives of their children in U.S. coal mines because it was
relatively better than life in their native lands. One grateful
miner said about how he had paid his son's college education by
selling his house, “That I couldn't have done in the old
country.” The living standards we have in the United States are
special. The living standards foreigners bring often are not.
Being the greatest country in the world is relative, but being a
great country is absolute and imitable. Don't play down to
ambience; play up to your potential. Be an example not a
martyr. If that's not enough, remember anything worth dying
for is worth killing for.
(19) Border security starts with fining and sending to jail the
employers of illegal aliens. No border security proper can be
100-percent effective. Eliminating the economic pressure of
illegal aliens on our borders is something that can be done quite
effectively. A border with loopholes does not stop the dangers,
but a border fence sure could make a well-connected contractor
rich at taxpayers' expense. As long as Big Business profits
from foreign labor, don't expect a secure border. As long as Big
Business profits from the drug trade—especially if that big
business includes the CIA and any other aspects of U.S.
Government, or explain the well constructed tunnels through
American soil and protected drug traffickers—don't expect a
secure border. As long as the global establishment revolves
around Saudi Arabia or any other economic ‘bridge’ nation

linking the orthogonal cultures of West and Middle East, don't
expect a secure border.
(20) Applied to people of orthogonal mores, the golden rule
is predictably pretentious. A sound foreign policy in the Middle
East would rather exemplify the silver rule: “Don't do unto
others as you would have others not do unto you.”
(21) If this is a library book and you scribbled in it, you're
an asshole. See how a disparaging word can be appropriate? A
small infraction you might say. The psyche that will take tiny
expediencies at your small expense (or without regard to your
expense) is testing your ability to pay, edging closer to a larger
withdrawal, and promoting destructive living skills. If this is a
library book and you ripped out a page, I hope you *x*x*.
Rational exhortations cannot reach fools and derelicts. The
next strident class of methods to apply social standards is
emotive. The most strident directives of social standards are
violent. Violence is an indelible law of nature. Whether
applied top down or bottom up, the state of the arts of rational,
emotive, and violent ‘communication’ and the wisdom to use
them define the empowering folkways and social policies of a
people. A chain is only as strong as its weakest link. Some
links are best eaten for breakfast.
(22) Federal Judge James M. Munley of the United States
District Court for the Middle District of Pennsylvania ruled:
“AND NOW, to wit, this 26th day of July 2007, we hereby
DECLARE that Hazleton Ordinance Nos. 2006-18, 2006-40
and 2007-6 (hereinafter “IIRA”) and Hazleton Ordinance No.
2006-13, (hereinafter “RO”), are unconstitutional. We
PERMANENTLY ENJOIN the defendant from enforcing IIRA
and RO.” It might surprise you to learn the Constitution of the
United States is, or at least was, itself unconstitutional. The
Articles of the Confederation stipulated a ‘perpetual Union’.
That first U.S. constitution prohibited the Constitutional
Convention of 1787 from doing anything more than amend it
with impractical difficulty and certainly precluded the drafting
of a replacement. Professionally aloof to his country's needs,
Judge Munley reasoned, “The plaintiffs testified that they were
unaware of the immigration status of their renters. No
evidence, therefore, indicates that the renters they lost were
illegal immigrants.” I note article 4, section 4 of the U.S.
Constitution declares: “The United States shall guarantee to

every State in this union a republican form of government, and
shall protect each of them against invasion.” Nevertheless,
Judge Munley speaks of ‘due process’ while working Ameri-
cans suffer the occupation of twelve million foreigners.24
This vulgarity is surpassed only by having our troops in
harm's way giving foreigners ‘due process’ in the Middle East,
reportedly. When the masses are placed in a contrived and
connived social conflict at home or abroad, the social stress will
translate into indiscriminate rage that will only get worse until
the causation is broken. If you show me an American who acts
atrociously under pressure orchestrated by elitists abusing man-
made authority, and I will show you a pawn in a deranged
ecology bent on resolution with all the authority of nature.
Coming to a country near you.
I can't blame illegal aliens for wanting a better life, but
neither will I welcome them at my and my citizenry's expense.
It is the champions of the post-Lincoln Divine Right of Wash-
ington (forgive me George) that deserve our intense scrutiny.
The democratic solution to this up-is-down straight jacket is a
rational imposition of accountability, not reactive outbursts of
rage. Suppose we had an Internet portal connected to a
database detailing the known players of the Great Soviet Amer-
ican Demorepublicracy, their deeds, their likenesses, and their
haunts. The workers of this country—for example waiters, taxi
drivers, and auto mechanics in your hometown—could refuse
service to the traitorous vermin, assuming we have the legal
right. But then we would need a pro-American version of the
American Civil Liberties Union (ACLU) to defend the right of
American workers to refuse service to their oppressors. Any
American billionaires out there? Since it is or soon will be
illegal to resist our oppressors, just dutifully labor at a discount
as your welfare is stripped away from the country like old paint
removed by Third World labor. Freedom comes at a cost, but
not all costs come with freedom. Be informed. When there is a
fork in the road between functionally right and functionally
legal, fools will reach for dispensed safety and have none.
Being smart enough to know what not to do is a start, but it will
not suffice. We had better get this right. More and more this
24 The court's Web site, extensively ‘down for maintenance’ in mid 2009, is
located at http://coop.pamd.uscourts.gov.
country looks like a Mexican democracy. The CIA's The World

Factbook 2005 says: “Elections held in July 2000 marked the
first time since the 1910 Mexican Revolution that the opposi-
tion defeated the party in government, the Institutional Revolu-
tionary Party (PRI). Vicente FOX of the National Action Party
(PAN) was sworn in on 1 December 2000 as the first chief
executive elected in free and fair elections.” This is the same
Vicente Fox who almost signed into law decriminalization that
would have promoted drug tourism from the United States.25
(23) You are throwing away your sovereignty if you fail to
form an intelligent legal opinion about your jurisprudence.
There's this extremely liberal concept called democracy. No,
it's not a bombastic candy dispensed to the lowest minions;
that's called political rhetoric. Democracy is something we
exude, or else we don't have it. To my stupid fellows, the
democratization of corruption is corruption snatched from the
jaws of democracy. It is not a virtuous or First World democ-
racy; it is the character, culture, and essence of Third World
people. Contrary to modern liberal thinking, mastery of the art
of violence is still prerequisite for a viable society. The Laws
of Nature insist that might makes right. In the best domestic
scheme we know, attorneys are warriors on the legal battlefield
vying for the violent capacity of our police. A big problem with
the implementation is that the warriors are overpaid. To
deserve justice you will have to know something about the
playing field, viz. the U.S. Constitution, the U.S. Code, etc.
But you will also have to know something of history, philos-
ophy, economics, psychology, and more. A good lawyer can
create immaculate arguments to incongruous destinations
because the legal terrain is so immense and diverse. It is
similar to how the same Scripture has been used for cross-
purposes. Truth, justice, and what I would call the American
way are beholding to the natural terrain. Less and less can we
argue against absurdity since the ‘absurdity doctrine’ as a court
prerogative has fallen into disfavor. Charlatans and loons will
circumscribe your freedoms with dubious duty and malformed
morality. Down is not up because human statute says so. Real
25 At the beginning of the paragraph is an adaption of the Divine Right of

Kings, something I did not explain in this book. Recent versions of The
World Factbook may be downloaded and the current version may be
directly browsed from the CIA website at http://www.cia.gov.
life does not happen in the artificial world of jurisprudence.

Society is simply made to function for good or for bad because
of jurisprudence. Understand what is for good and insist upon
it.
(24) Patriotism and the phrase ‘Support Our Troops’ has
been perverted and so accepted. The President is a civilian in
charge of the military. Civilian service then trumps military
service, of course not in valor or sacrifice but in moral
supremacy. Wouldn't civic debate and civic duty concerning
foreign affairs trump military duty, at least for civilians? We
civilians must have no qualms about getting social policy right.
(But please don't initiate debate with or rant at a soldier while
we are at war. Our soldiers must have no qualms about
defeating and surviving the foreign nationals they face.) The
U.S. Constitution protects us from a standing army and a dicta-
torship precisely by empowering Congress to withhold military
funding. Are you going to later materially support our veterans
debilitated by injury or in the clink for failing to justly police in
a context requiring war? Let's say we successfully build an
Iraqi democracy after a trillion U.S. dollars have been spent or
should be spent in the future (for things like veterans' health
care), and let's say we (some more than others) consumed 30
billion U.S. dollars worth of liquidated Iraqi assets to include an
unknown quantity of crude oil, and let's say total American
casualties were 4,000, and let's say we supplied arms to Sunnis.
What's to stop the transition of that wonderful Iraqi democracy
into an Islamic regime. Hitler was elected. Chavez was
elected. The people collectively decide what they want, and I
don't mean solely at the ballot box. A knowledgeable military
officer told us, “Riots in Third World countries are a form of
warfare.” The Chinese, most of them, chose Communism in
the first half of the 20th century and likely because it was the
form of contemporary government closest to the folkways of
state-run Confucianism. What's to stop the election of a Hamas
to power in Iraq? What's to stop the election of Osama bin
Laden to the Iraqi presidency? What's to stop the creation of a
regime that will hurt us with the material and psychological
tools partly derived from us. We the people of the United
States, supporting our government with our taxes and our over-
sight, prompted the Iraqi capacity for weapons of mass destruc-
tion by sharing chemical and biological weapons technology in
the 1960s. Have we learned nothing? Are we going to respect

the new Iraqi sovereignty forged by American blood and toil?
If the oil flows nicely enough, I suppose yes.
Can you entertain the possibility that U.S. foreign policy
over the last thirty years has provided welfare to Middle
Eastern culpability of Middle Eastern foibles and incapacity?
Or that U.S. foreign policy has retarded the region's impetus for
sociocultural evolution, as feeble as it may be? Are we confi-
dent Western values are superior? If the Western world left
oppressive societies to their own devices in isolation except to
impose the silver rule, wouldn't those oppressive societies natu-
rally implode, arouse their own destruction, or stagnate stub-
bornly into dutiful extinction? We do truly believe in ourselves
deep down, right? I realize socioeconomic isolation of the
culturally incompatible is not perfectly achievable in a global
economy, but the principle is as sound as telling the truth.
Without an exceptional reason otherwise, that's what you do.
Know and love the Prime Directive. Let each society reap what
it sows with separate accounting. Accountability is what makes
capitalism great. Indifferently let the ‘Laws of Nature and
Nature's God’ decide truth belonging to others if others shall
have their own truth without imposition.
(25) Across the generations, every society will have leaders;
every proletariat, a bourgeoisie. If the people are sheep, the
nation is weak. Sheep meander toward oppression of their own
might and deserve slavery. If the only viable teams are team
Sheep and team Condescension, joining team Condescension
becomes attractive. Power is truly of the people, and that
power is too often tendered and ineffectively gathered by the
dull, corrupt masses and effectively gathered by the corrupt
few. When that next case of insolent corruption comes to
public light, that's the degree of stupidity team Condescension
rates the general population based on day-to-day experience.
That's the fantastic world of the unscrupulously rich and
powerful in a Gilded Age. The reinforcement by team Sheep is
just too overwhelming and too transmogrifying. We worship as
idols the poster children of a lifestyle we afford to numerous
scumbags and their spawn. Only dehumanized slime can thrive
in the cesspool we call Big Government. In my estimation, no
member of Congress with a career of at least ten years running
could be unsullied.
(26) Having over 100,000 U.S. troops deployed into a

deadly situation where paranoia keeps one alive and where
outright winning necessary for optimal self-preservation is
stifled by duty—I'm thinking rules of engagement—it would be
hard to imagine psychological breakdowns are improbable.
The courts-martial of our soldiers in such circumstances should
not be done hastily, without consideration of the political culpa-
bility to the framers of the operation from the top down, or
agitated with political panache by Congressional space guns.
And then there is the definition of an ‘innocent’. Enemy
combatants do not materialize out of thin air, they are born from
wombs and suckled at breasts. Policing cannot work in a
ragged patchwork of alien cultures. Remember the lesson
observed by J. Ross Browne in China over 100 years ago. The
greatly increased importance of rules of engagement over the
last few decades is symptomatic of the feminization of Western
society to its core.
(27) Political freedom, a.k.a. liberty, requires political trans-
parency utilized by an engaged public. Recall the quote of
Thomas Jefferson about government and newspapers. The
‘media’ has in limited but sensational fashion ‘reported’ the
rules of engagement (ROE) applied to U.S. troops in the Middle
East fighting the war of American half measures. Documenta-
tion to elucidate the once widespread depreciation of those
ROE is far less overwhelming. We are told the ‘Surge’ (2007–
2008) has worked, but I wonder if the ROE may have been
manipulated to extend the opportunity for graft. ROE certainly
have been politically manipulated in response to the ‘CNN
effect’.
Likewise, the media has done a lousy job documenting the
historical debasement of U.S. currency, as if waiting for the
final chapter to be authored first. A keen indicator of the past
management of a currency's worth is the unit cost to make the
lowest denominated coins. If we were sane, we would require
the federal budget to be balanced, especially over the long term.
A slight, temporary annual federal surplus would be useful to
again make a penny and a nickel cost less than their face values
to mint. Pennies made since 1982 are copper gilded zinc (2.5%
copper, perhaps by weight); nickels are lately a 3-to-1 cupro-
nickel alloy. The Government should be barred from relief by
debasement of coin standards and forced to face negative
seigniorage. Should it be more economical to melt down coins

for better uses, why should government stand in the way and
make things worse? The Federal Reserve is designed to make
expert ‘impartial’ decisions about monetary policy and yet
acquiesce to our wonderful Congress on political economy.
The superficially deferent tail is wagging the dog, or maybe an
overgrown butt hole of an establishment within the Establish-
ment is wagging everything. In the latter case we may expect
politicians with the audacity to be individualistic rogues
without deference to the well-coordinated butt hole to be
systematically routed. Regardless, the net balance of annual
government spending is something an impartial expert body
should dictate to Congressional administrators, ultimately
meaning the American people should dictate and dictate well. I
refer you to the concept of democracy. All real lovers of
democracy have a basic understanding of political economy and
the importance of net government spending. You don't love
what you don't know. It seems that our nation's executives have
made the U.S. Mint answerable to the American people
primarily to collect money for the purchase of collectors' coins.
Our leading weenies get an undeservedly positive seigniorage
that way. What I want to see readily published by the U.S.
Mint is the average annual unit costs to make each denomina-
tion of circulating coins. We have recent history from annual
reports at least. For fiscal years 2004–2008 the average cost of
making a penny was 0.90¢, 0.95¢, 1.19¢, 1.65¢, and 1.39¢; for
the nickel it was 4.46¢, 4.78¢, 5.92¢, 9.49¢, and 8.77¢. More-
over, I want to see graphically for all known years the unit cost
of a penny with annotation of the changes in the penny's
composition. A comprehensive account should be available on
the U.S. Mint's website. I imagine the data would be appalling
and eyeopening. As an alternative please take a look at the
notes with 31 U.S.C. 3101; it's in the United States Code; I
think you can find it.
I could go on about the lack of political transparency from
our not-so-much proxy government and through our lap dog
media, and briefly I shall. How pathetic it is that the inheritors
of the greatest country in history are indifferent to their own
charter and are content to have a President-apparent. I call for
your individual participation in a nationally minded grass-roots
campaign. Just pick something and ask for political trans-
parency. Ask your familial relations and friends of other house-

holds to ask for something. I don't ask for great individual
effort because the power of democracy does not work that way.
I ask for a team effort great by the iota.
(28) Congress can and does write bills combining logically
disparate provisions with nothing more substantial than polit-
ical expediency. Why is that? A judicial agency could be
created to approve or veto with comment the topical coherence
of bills before the President or Congress has the option to
directly enact such bills into law.
(29) Voting could be used to remove officials (the President,
the Vice President, Speaker of the House, or a favorite Supreme
Court justice) from office as easily as putting them in. A
peoples' vote of no confidence designed conservatively could
be a valued mechanism to avert bloody necessity. The approval
rating of President Bush the Younger who has made use of
executive privilege unlike any previous U.S. President provides
a useful benchmark. In July 2007 his approval rating was
waylaying the statistical floor of 30 percent. A reasonable
threshold for removal seems to be a touch over 70 percent, at
say 75 percent.
(30) The Constitution of the United States of America has
become antiquated and grossly inadequate. The Federal
Government was once checked by political power of the States.
The practices of the Establishment have overtaken constitu-
tional design like a banyan tree of bitter fruit. Judges use
legalism as a political expedient. Lobbyists now write the new
law in lieu of Congresspeople who do everything but their
actual jobs. As it is, we don't reward Congressional achieve-
ment on our behalf and the jurisprudence is stacked against us.
We need to take the reigns back, and that cannot be done
without maintenance and upgrade to the fundamental design
now embodied by our Constitution. The granting of ill citizen-
ship by interpretation of section 1 of the 14th Amendment must
be prohibited. The money laundering and freelance
entrepreneurship of the CIA, activities in violation of the
Constitution and democratic principles, must be terminated.
The Constitution could be amended to read something like this:
We the people alone embody the sovereignty of our nation along
with its citizenship, a biform attribute to be respected and
regarded as inalienable, nontransferable, nonnegotiable and
unsaleable, and to be connoted a lien on our government and our

domestic governance, both at all levels, that shall not be infringed.
As a general rule our government shall benefit we the people
rather than we the people shall benefit any government. As a
general rule people shall be regarded as beneficiaries of the law
rather than the law or its legalism construed as beneficiaries of
people. The preeminent benefit of the law shall be the preserva-
tion of liberty to we the people, the ruling citizens of the United
States of America.
That would give the courts a hint and actually specify principles
as law. The most important action we can immediately take is
to update the election process of the U.S. Government. The
electoral college should be eliminated, but also the right of
States to secede should be explicitly restored. We must ensure
our democracy the freedom to fail squarely in our own laps and
teach us its lessons, or we must relinquish freedom altogether.
We (and eventually the world) require a peaceful mechanism of
disowning and forming national governments, subjecting them
to federal market forces in the scrupulous sense of federal.
Voting-machine technology used in America should belong
to the American people under the stewardship of the U.S.
Government, whether that technology is made proprietary or
open source. The voting scheme should champion the people
voting for what they want by liberally including votes. The
current method is a divide-and-conquer arrangement that liber-
ally throws votes away. The President could be elected by a
process that allows three ranked preferences with each vote.
The House absolutely should be elected as a truly national
body, nationally representative, and with less ‘cooks in the
kitchen.’ Since the 108th Congress first convened in January
2003, the House has had 435 representatives per an apportion-
ment based on the U.S. Census of 2000. With that many
members it is difficult to determine who individually is
accountable for what. As a safety on remodeling of the House
to better represent we the people, the Senate should be retained
until one legislative body will suffice with certainty (something
not likely any time soon). Perhaps a parliamentary system
would make government more accountable to us. Perhaps the
irregular election cycle could be used to stunt campaign fund-
raising.
Dividing the power of government against itself is no fail-

safe guard to subjugation of the people. It is only subjugation
light for a time. A house impotently divided against itself
cannot stand. An autonomous house not impotently divided
will unite into a full-bodied subjugation. Congress has stood
over 200 years. The quality of subjugation itself is the problem
to solve, and that problem can be addressed by devising the
House anew. Election of the Senate has become an unrequited
burden on the people that, as redress is sought in the House,
should be returned to State governments by repeal of the 17th
Amendment. The ultimate check of governmental abuse is the
power of the people. It is hard to know American history and
think the right of the people to bear arms has anything to do
with hunting animals. It is about free States and people main-
taining their freedoms with the capacity to hunt men. The idea
of entrusting the U.S. Government with the vitality of we the
people was incompatible with the philosophy of the Founding
Fathers. (Alexander Hamilton was the notable exception.)
Since the States have long been unable to champion the
peoples' freedom, that burden defaults directly to us. To etch
this truth in the hearts of the American people, I suggest an
amendment made irrevocable (or exceptionally protected) to
identify the right and duty of the American people in general to
bear arms and the means to overthrow our constitutional
government, and for pedagogy of what it means to be an Amer-
ican, to identify a successful overthrow as an unreservedly legal
act. However, this proposed amendment would also explicitly
not protect from indictment, trial, judgment, or punishment,
according to law, persons making any unsuccessful attempt to
overthrow the sitting government. In other words, the converse
would also be explicitly true. It's all tacitly true now! Such is
the conundrum pondered by a truly free people. You might
think changing the Constitution this way is too unsettling. How
did the Founders rewrite our entire Constitution with less than 6
years of experience, yet 200 years later we flounder with simple
upgrade?
Most of all think and act effectively. Periodically study the
facts. I have documented hereby useful sources and my use of
them to encourage you. Please expand your emotional and intel-
lectual capacity and encourage (or expect) others to do the same.
Please facilitate rational debate, the elimination of poor ideas, and
the adoption of sound social policy. Freedom of speech simply

used to mouth off can undermine our freedom of speech. It's not a
toy. Please have an informed opinion about your opinion and then
lead, follow, or get out of the way.
ACKNOWLEDGMENTS
This book would have been infeasible without the Internet, elec-
tronic resources, public libraries, and University libraries with
public access. The work process would have been far more
tedious without the Bash Shell, Gentoo GNU/Linux, the
OpenOffice.org Suite and other free-and-freedom software. To the
countless unseen people who empowered me with computer tech-
nology, thank you, but please please don't duplicate every visual
Gatesware ‘feature’. To those whose efforts run the many libraries
that have shared resources with me, often through interlibrary
loans, I thank you. Especially useful electronic resources
included: JSTOR, the Making of America Project from the Univer-
sity of Michigan and Cornell University, the U.S. Code portal from
Cornell University (the U.S. Government could learn something
here), and the “A Century of Lawmaking for a New Nation” digital
collection from the Library of Congress. The good, old-fashioned
index to the New York Times and the old Poole's index were used
extensively. I am especially grateful to the librarians and staffs at
the Carnegie Library of Pittsburgh, the Oakland haunt and more-
over Reference Services therein figuring prominently, at the
Oakmont Carnegie Library, at several libraries of the University of
Pittsburgh located in Oakland, namely the Hillman Library to
include the Microforms Department therein, the Darlington
Memorial Library, the Barco Law Library, and the Falk Library, at
the Hunt Library of Carnegie Mellon University, and at the
Barbour Library of the Pittsburgh Theological Seminary.
Some of the people who were particularly helpful with my
access to nonlegal resources were: Leigh Anne Vrabel, Don Went-
worth, Stephanie Zimble, Thomas Barnes, Georgia C. Dawson,
Richard Kaplan, and Michael Marino. Some of the people who
were particularly helpful with my access to and interpretation of
legal resources were: Marc Silverman, Linda Tashbook, and
Michele Kristakis. Knowledgeable and helpful government
335
336 ACKNOWLEDGMENTS
employees I have left unnamed for discretion's sake, but my acco-

lades are theirs nonetheless. The choice of this book's content and
expression has been entirely mine.
Talk radio has been fertile ground for subject matter. Glenn
Beck brought to my attention the danger to the United States of
repeating the uneconomical military folly of the Soviet Union in
Afghanistan, and the incursions of Mexican military in 2006
across the Rio Grande. I am making use of the latter only now, but
it is important. Michael Savage brought to my attention the
ownership of U.S. television media by Prince Alwaleed bin Talal
and the proverb attributed to Martin Niemöller. The proverb is
shown infra. I make distinction between the water bearers and the
principled independents of talk radio. I can think of three popular
mouthpieces of the Republican faction of the Establishment who
speak for the rank and file only as far as ratings dictate. More
insidious is television, where the Democrats predominate. May I
suggest scholarly, neurosis-free books. Good discrimination of
information takes practice. We live in a demented time when not
only vitality is deemed cruelty and dependency is deemed compas-
sion, when not only the Government's discretionary spending is
really mandatory and its mandatory spending is really discre-
tionary, but when journalism is dogma and commentatorial
opinion is journalism.
To those who bedizen their publications with impudent warning,
especially the ones I disregarded for this book, I dutifully say,
“stick it.” To those who bedizen outgoing email with impudent
warnings, especially regarding unsolicited emails sent my way,
with the same offering I add, “lather and repeat.” Intellectual
property, like justice, largely accrues to the individual, but the laws
of nature further dictate a lesser but nonetheless vital part must be
vested with all members of society. The doctrine of fair use fits a
general truth often poorly understood. That the general truth exists
is admitted by a legal term: equity. Optimal social design is not
about striking a balance, certainly not one of human wishes per se;
it's about harboring increasingly vital functionality. The plutoc-
racy fomenting the Great Strike of 1877, the exuberance fomenting
the Great Depression and the Dotcom Bust, failed communism,
crushing autocracy, stifling theocracy, impotent ‘Afro-Ameri-
canism’, misplaced maternalism, perverted normalization of polit-
ical correctness, etc., etc. collectively illustrate the criticality of
individual and group vitality by absence and adulteration. In my
ACKNOWLEDGMENTS 337
opinion, the solution to America's systemic problems is essentially

the destruction of America's governance blight and American
possession of the democratic capacity to impose it. First my
fellow Americans, end federal deficit spending. Second, move the
superintendence of American globalization and taxation from the
dark entrée of the back door to the spotlight before the front door.
End globalization and taxation without representation! We have
had laid at our feet the finest tools of technology and social institu-
tion known to mankind. Our problems are ultimately not external.
The root of America's evil is the aggregate incapacity of Ameri-
cans, the incompetent realization of our potential; nay, the root of
America's evil like the good is simply our American selves.
Responsibility is power is responsibility.
We are not ready to be great when we are not ready to build
upon the past greatness of our collective forebears. If I were to
describe the path to greatness we can call our own, to success by
21st-century standards, its essence would be expanded application
of free-market economy. Liberty of conscious is not a consump-
tively limited resource; freedom to eat or to drive a fancy car is.
Some freedoms must be economized. As I wrote supra, Adam
Smith's Wealth of Nations (1776) described a free market and
economy of religion. More supra still I wrote that the Portuguese
and Spanish of the late 15th century kicked off the physical
process of globalization. Together the two historical facts suggest
a third: the British and Americans of the late 18th century kicked
off the cultural process of globalization, autonomous free-market
adaptation. I envision not only a free market of federal govern-
ments but national free markets of commoditized geopolitical
subunits competing apples-to-apples for the vital presence of citi-
zens. Imagine a straightforward comparison of a few flat tax rates.
Maybe even a mission statement for each locale. We must build
upon rather than tear down Smith's paradigm. We must not only
have government use free markets to regulate individuals but have
individuals use free markets to regulate government.
This next thought will challenge the psychological sophistica-
tion of many. Imagine local communities constrained to choose
from a list of standardized legal policies making recreational drug
use and distribution together entirely legal, legal for ‘softer’ drugs
only, or entirely illegal. Mexico has never had government not
dominated by corruption, and the impoverishment of her people
and land bears tribute. If we Americans want to secure our
338 ACKNOWLEDGMENTS
southern border with Mexico, not only must we prohibitively

penalize employers in America who hire illegals, we must take
away the fabulous profitability of the American illicit-drug market.
Mexicans would have one less barrier to birthing the Mexican
Dream.
I want to emphasize here the connection between freedom and
free markets. There is no freedom in civilization without free
markets. Popular sovereignty is essentially a free market. We
know from economic history that centralized planning down to the
level of individual possibilities is not just worse than free-market
decision making but downright destructive. Why should that only
be true economically? For example, driving speed has tradition-
ally been determined by a free market. Government roads are the
supply and drivers with cars are the demand. Police are speed
market regulators who, among other regulatory functions, increase
the cost of vehicle speed. Doing so is justifiable only to the degree
that individual failure is catastrophic to the roadway system or
substantially disruptive to the system's use, which is of course an
imprecise threshold. When government has the technology to
track or control the movement of every vehicle, there will no
longer be a free market of vehicle speed, nor the freedom to
choose vehicle speed.
Parenting and reproduction have generally been determined by
a free market. The costs of individual decisions may be eliminated
only by eliminating individual decisions and accepting the
undoubtedly greater costs of centralized control. If abortion were
completely outlawed, numerous saved children would increase
demand for the economic and psychological resources together
called parenting. Available forms of the alternative centralized
costs would then be the additional government expenditures of
rearing and parenting, the abuse and neglect by biological parents,
and the destructive existence of additional human inadequacy
incarnate. It would only be fair to the taxpayers to sterilize the
parents of children supported by government welfare. Further
solutions extend only further beyond the brink of a very slippery
slope because the parenting-reproduction complex is indivisible,
because children generally do not deserve what people other than
their parents possess, and because the costs of life—what free
people at every stage of life must generally bear as individuals—
cannot be minimized to zero so long as the tool money best
reduces such costs, to a level necessarily far short of a life guar-
ACKNOWLEDGMENTS 339
antee by admission of economy. The material pursuit of unearned

guarantees constitutes a fair definition of evil. The last argument I
give against socialized parenting boils down to the fact that many
are called and few are chosen, or that life has inherent cruelty. I
don't so much care to have you precisely agree with me, which is
impractical. I hope to alert you to the potential danger of vesting
the choices of parenting and reproduction with the state or any
central organization. I hope we agree to exclude government from
directly controlling the reproduction and parenting business.
Using the analogy of police patrolling our highways allows for a
less hysterical analysis.
I don't want others erroneously or maliciously extrapolating my
position on abortion, which is really my position on government
regulation of the parenting-reproduction complex, so I am
compelled to define something explicit. My position, as I consider
it now, there is no tidy solution, is to ban partial birth abortions
entirely, to not ban the abortion of inviable fetuses (I believe
consistent with natural rights and natural laws owing to God, the
idea of a free market of reproduction, and the idea that nontrans-
ferable dependency incarnate has no capacity to permissibly gather
of itself, much less to circumscribe, the rights of another upon
which it is solely based, and furthermore has not the standing to do
so even with a surrogate), to ban abortion of viable fetuses gener-
ally (with exceptions for cases of jeopardy of the mother's life,
cruel health problems of the fetus, and maybe others but not cases
of rape), to sterilize, in a reversible manner if feasible, the parents
of children supported by government welfare, or of children
having been supported by government welfare not repaid in full
real value (with the exception of children procreated by rape
proven by conviction being granted to the rape victim as parent but
not the rapist as parent and with equal applicability to each sex),
even if those parents are adolescents, and to authorize the use of
mandatory double-checked genetic testing of parenthood to
enforce the sterilization requirement with oversight by a court of
law should child support have been effected and not repaid in full
real value or should child support be duly requested by either
parent or by a person or persons vested by guardianship and in all
other respects merit approval. Enough is enough.
Well, apparently not. There must eventually be catastrophic
consequences to going down that slippery slope, even in the happy
toboggan of child welfare. So you see the U.S. Government is
340 ACKNOWLEDGMENTS
running a reproduction business already. Because public educa-

tion is controlled by a huge teachers' lobby, treacherous politicians,
and oppressive plutocrats and socialists, the U.S. Government is in
the parenting business too. The Partial-Birth Abortion Ban Act of
2003, codified as 18 U.S.C. 1531, provides a criminal liability for
those who perform partial-birth abortions. To my layman's mind
alone it seems, a loophole is suggested by the legalese: “Any
physician who, in or affecting interstate or foreign commerce,
knowingly performs a partial-birth abortion *x*x*.” There is the
partial catchall: “*x*x* Provided, however, That any individual
who is not a physician or not otherwise legally authorized by the
State *x*x* shall be subject to the provisions of this section.” I
wonder if ‘charitable’ physicians are liable. Under this federal
law, women who get partial-birth abortions have zero liability.
That is one hell of a parental loophole.
The tidiest government solution to reproductive ills permits no
pretense of a substantial resolution. Voluntary adoption though
laudable is not a blanket solution. I believe the best political solu-
tion for America is a welfare system for Americans only, of
blatantly undignified dependency, of three daily offerings of gruel
followed by the availability of a sleeping mat for use on the large
floor of an austere communal room, and otherwise letting misery
and death visit upon indigent children and adults as Nature
commands. I believe a partial-birth abortion is not actually an
abortion, is abhorrent, and has no place in civilized society.
Nevertheless, I don't see much difference between the death of a
fetus and the death of an infant both due to parental fortunes
within the grand scheme of Mother Nature's cruel design. Shall
we jail, that is expensively house, inept parents? Shall we give
government the power to sterilize us? Shall we reprieve the poor
of the most dubious capacity, greatest prolificacy, and greatest
death rates from their freedom, or perhaps the able from theirs?
The right to life is predisposed to puffery in sloppy minds: it is a
right to life as given and taken away by ‘the Laws of Nature and
Nature's God,’ not as given exclusively by God with mankind
thrown in under compulsion.
If we save the weak by mandate, we go down a slippery slope
according to natural law, we embrace and subsidize incapacity for
First World civilizedness and freedom. Western men, including
myself, have been conditioned to accept insidious assumptions, for
example to believe human progress includes progressively digni-
ACKNOWLEDGMENTS 341
fied and affluent welfare. One nasty assumption could make

widespread imposition of sterilization by government appear not
just reasonable but justly imperative. By recognizing neither a
single emasculative falsehood for what it is nor the precarious
balance that is freedom, the seeds of decay and tyranny are sown.
Implacable maternalism has wrested liberalism, progress, the very
helm of the West from the manliness uniquely competent enough
to have built it. Western manliness has been sundered to the left
and to the right in less than one hundred years. Such is the
strength of diversity coddled by the cold, dry bosom of feminism.
Equality for all is the lowest common denominator, the absolute
worst of humanity. Sometimes the appropriate thing to do is to
refrain, U.S. Government leaders and abject Americans.
Most heartily I acknowledge and thank the corrupt vermin that
shepherded my vitality from aspirations of gainful employment to
the writing of this book. I hope you rue the day I committed
myself to publishing this seminal work. Lastly, I'd like to thank
the common American hedonists, who have actively and passively
abetted and condoned our subjugation. Enjoy your hits of news
drama, celebrity sleaze, sports entertainment, and political correct-
ness. I mean to impose just and uncompromisable standards upon
your stupefied and overstimulated existences. For now, it is my
great pleasure to announce, “You suck!”
I am writing, subject to later editing, the next two paragraphs on
24 September 2008. I'm pissed, so forgive my tone. These para-
graphs belong somewhere near the end of this work, so here they
are. President Bush announced his $700 billion bailout plan this
past Friday, the 19th. He gave a speech tonight. I have not studied
any documentation of this evolving proposal, but considered this
dilemma I have. According to my radio just this moment, it seems
there will now be oversight on how the money is spent, but by
which foxes? As I understand the pitch of Treasury Secretary
Henry M. Paulson, Jr. and the descriptions in the news, this will be
a fool-me-twice investment. It is redirecting purchasing power to
the economically corrupt, who in their wake habitually leave a
dearth of wealth and money. These degenerates destroy each of
the intertwined systems of wealth and money. Money is blood; it
must circulate in living things. It must deliver sustenance. Among
the lowlifes are the rich and powerful lowlifes. Rich and powerful
vermin feed first and pay last. They are more corrupt in times of
crisis, not less, because crisis is opportunity. They are concen-
342 ACKNOWLEDGMENTS
trating purchasing power for themselves and moving closer to the

day they can tell indignant indigents to go to hell. Indignant indi-
gents belong in the Third World, coming to a country near you.
Our leaders and the media are telling us the fate of main street is
identical with that of Wall Street. Why now? Plastic faces will tell
us the credit crisis is due to a lack of faith, but the lack is in
sincerity! Cutting lose Wall Street and back street vermin by their
own putrid results is a necessity to our recovery, and a golden
opportunity. Yes, peoples' pensions and retirement accounts are at
stake, and already damaged. Everyone is connected. It's called a
systemic problem, duh. There is flexibly in our connectedness,
however. We should be sure to use it to our advantage, so it is not
used at our expense. It is not possible to save individuals simply
for being individuals, okay Mommy? It is time to reconstitute our
economic system (and culture) as a network of able individuals.
The luxury of playing the America game to not lose is long gone.
We must play to win to salvage the democracy and freedom left in
our institutions. Liquidity is needed for the system only to the
extent money must be spread out enough to actually circulate, but
there must be wealth creation too; there must be sincerity. Our
failed large banks, and the people behind them, big and small,
lender and borrower, deserve to burn (figuratively, at least)
because they are socioeconomic cancer. The small banks have
earned a greater command of the banking sector. Let them have it!
A solution must satisfy sound philosophy. It must, as far as
possible, exclusively penalize credit building and fully protect
savings accumulation. I suggest three points to any plan of attack.
First, if an injection of deficit spending is needed—which it isn't—
let it be by creating a single, flat-rate federal tax and setting it so as
to lower tax revenue. Reward production for God's sake! Better
yet, just implement the virtuous tax scheme and keep a balanced
budget. Second, legally reduce private debt outstanding, and get
on with the corrective reallocation of wealth. It's ultimately only a
question of if, how, and how fast. A system-wide partial write-off
by decree is as fair as it can get, now that having an economy at all
is in question. Simply make it 30 cents on the dollar if paid in the
first year the law is in force, 45 cents in the second year, and 60
cents thereafter. Back it with an expeditious default process and
seize everything, especially the assets of those financially engi-
neered bastions that have been hitherto untouchable, be they trust
funds, shell companies, or ownerships of relatives. Third, govern-
ACKNOWLEDGMENTS 343
ment should subsidize an efficient, communal system of welfare to

provide food and shelter and phase out in synchronized fashion
welfare that mocks independence. Welfare should be more
degrading than independent living. It should not cater to grandma
who can't make it to the shelter, who did not produce enough for
her golden years, who has no hope of being productive, who had
the privilege of the opportunity safeguarded by her membership on
team society, for what it was worth. Unfortunately, we have the
social contract Social Security. It must go, as gently as can be
afforded since an abrupt change in the rules exposes an induced
cruelty, though anyone with a brain has been expecting this some-
day. If you have family and friends in your old age, great, but you
don't get the whole country. Welfare should generally be an
uncomfortable stopgap measure of mats and gruel. No television
and no Friday night lasagna. Welfare should assuage riotous
impulses but not hunger for success. Finally, I'd like to say, if
someone were trying to destroy the United States, they could not
be doing a better job of it. Do not trust a leadership known to kill
we the people. If you wish to concentrate power in a sugar-daddy
savior, you may as well just court dictatorship explicitly:
“Goldman Sachs heil!”
FURTHER REVIEW
Legislative Web Resources
The object of good legislation is to interweave society together, so

that man cannot injure his neighbour without at the same time
injuring himself.
—Fraser's Magazine, London, March 1833
THOMAS (http://www.thomas.gov) is the online resource of free

federal legislative information provided by the Library of
Congress. The search feature for ‘Bills, Resolutions’ allows users
to access information about bills at various stages from introduc-
tion onward. The search feature is most effective with knowledge
of the relevant Congress (e.g. 105th of 1997–1998) and the short
name of the bill (e.g. American Competitiveness Act). Each bill is
labeled to indicate its origin and identity (e.g. S. 1723). ‘Bill
Summary & Status’ will provide information about the bill like
cosponsors and as applicable the law it became and a link to the
enacted statute text as published by the Government Printing
Office (GPO). By following the “Text of Legislation” link the bill
text will be available without highlighting of search terms. Phys-
ical volumes of enacted law are available at federal depository
libraries, one of which may be a library near you. The oldest laws,
from the most fragile physical volumes, are available digitally
from the “Century of Lawmaking” Web portal of the Library of
Congress. The easiest way to get there is to follow the link from
the main Web page of Thomas. Knowledge of the organization
and history of the corpus of U.S. law will help you to navigate and
judge the work of America's political leaders.
Laws are published immediately as slip laws and thereafter as
volumes of the United States Statutes at Large. Each volume
generally corresponds to a single Congressional session within a
single calendar year since volume 50 (75th Congr., 1st sess.,
345
346 FURTHER REVIEW
1937), the exceptions being volume 54 (76th Congr., 2nd and 3rd
sessions, Sept. 1939–Jan. 1941), volume 55 (77th Congr., 1st sess.,
Jan. 1941–Jan. 1942), volume 64 (81th Congr., 2nd sess., Jan.
1950–Jan. 1951), and volume 84 (91st Congr., 2nd sess., Jan.
1970–Jan. 1971). However, laws are not infrequently enacted by
presidential signature after the adjournment of Congress, some-
times in the following January. A Congress is delimited in time
and sequentially numbered as the assemblage last altered by its
ordinal instance of regularly scheduled nationwide Congressional
elections, notwithstanding changes to membership for other
reasons. Laws are either bills enacted into acts, the usual form of a
law, or joint resolutions enacted into, well, pretty much joint reso-
lutions that are also laws. The distinction is that joint resolutions
made law are comparatively benign *x*x* umm *x*x* unless they
aren't (e.g. the Resolution of 5 June 1933, ch. 48). Volumes are
logical groupings of the U.S. Statutes that sometimes correspond
to physical book volumes. Those that do not are physically subdi-
vided into ‘parts’ with rare exception: a reprint of volume 31 (56th
Congr., December 1899–March 1901) is divided into two physical
volumes distinguished by page ranges alone, and a reprint of
volume 36 (61st Congr., March 1909–March 1911), part 2 is
divided into two ‘books’. The page numbering applied to statutes,
with the lone exception of volume 18 (43th Cong., Dec. 1873–
March 1875), is continuous throughout a logical volume. Note
part 2 of volume 18 is a single physical volume. Each act or
enacted joint resolution is a law referable by statute volume and
beginning page number. Volumes contain public laws, having
general scope, and private laws, specific to one or more named
persons. Public laws are segregated from private laws, sometimes
by volume, sometimes by part, and sometimes within a simple
volume. The U.S. Statutes at Large to a lesser degree engrosses
presidential proclamations, treaties, and other government docu-
ments.
Beginning with volume 1 (public laws only of 1st–5th Congrs.,
1789–1799), each bill made law whether public or private was
given a chapter number unique to the session within which
Congress had assented to it. Thus, an act was identifiable by its
date of enactment and chapter number (e.g. the Act of 1 July 1862,
ch. CXIX). Resolutions made into law were similarly numbered,
but no type for the number designations was indicated. Because
many bills or resolutions may become law in a single day, the
FURTHER REVIEW 347
chapter or plain number generally disambiguates references by

date alone. The representation of the numbers for each resolution
made into law changed from Roman numerals in volume 4 (public
laws only of 18th–23rd Congrs., 1823–1835) to Arabic numerals
in volume 5 (public laws only of 24th–28th Congrs., 1835–1845).
Chapter numbers were given in Roman numerals through volume
17 (42nd Cong., March 1871–March 1873) and thereafter in
Arabic numerals, starting with volume 18, part 3.
With volume 32 (57th Congr., 1st sess., Dec. 1901–March
1903), public acts were given a public number (e.g. [Public, No.
78]) and private acts, a private number (e.g. [Private, No. 78])
unique to each session and indicated in the margin. Chapter
numbers were still unique to each session among all acts, public or
private, and not shown in the margin as usual. Likewise, public
resolutions got public resolution numbers (e.g. [Pub. Res., No. 3]);
private resolutions, private resolution numbers (e.g. [Priv. Res.,
No. 3]). The public and private numbering was made unique to
each Congress instead with volume 35 (60th Congr., Dec. 1907–
March 1909). Thus, an act or enacted resolution became addition-
ally identifiable by its Congress, type, and type number. With
volume 39 (64th Congr., Dec. 1915–March 1917) acts and enacted
joint resolutions were merged and the use of resolution numbers
(plain, public, and private) were discontinued. The separation of
public and private laws remained, with chapters for all, public
numbers for the former, and private numbers for the latter. With
volume 55, public numbers were stylistically changed to public
law numbers (e.g. [Public Law 5]) and private numbers to private
law numbers (e.g. [Private Law 5]). With volume 65 (82nd
Congr., 1st sess., 1951), chapter designations were moved from a
left-justified position within the text to a right-justified position to
accommodate placement of the public and private law designations
in the left position. The standing of the two reference methods
effectively had reversed. The type-Congress-number style became
the official designatory method in lieu of the date-chapter or date-
number style with volume 71 (85th Congr., 1st sess., 1957). In
other words, the chapter designations were dropped, and the
Congressional ordinal was added to the public and private law
designations. So the Congress-public number style identifies the
Congress' ordinal number and the Congressional public number
thereof, for example Pub. L. 89–112 corresponding to 79 Stat. 446.
Reference to 79 Stat. 446 is not unique. Very short acts allow for
348 FURTHER REVIEW
multiple acts to begin on the same page, as sometimes happened

for laws enacted before 1975. The uniqueness of a volume-page
reference was not guaranteed until, starting with volume 89 (94th
Congr., 1st sess., 1975), statutes were necessarily engrossed
without shared pages. In the early 20th century developed the
practice of officially naming acts something convenient, like
“Central Intelligence Agency Act of 1949.” Such short titles are a
mnemonically pragmatic name declared by the legislation itself.
Not every statute gets a short title. Sometimes acts are nested
within other acts. Short titles, unlike public and private law
numbers and chapter numbers, may refer to a nested act. Volume-
page number references are always useful generically (e.g. see
section 6 of the Central Intelligence Agency Act of 1949 at 63 Stat.
211).
Initially the statute volumes covered larger periods convenient
to circumstances that changed with increasing Congressional
output. Identifying contemporary law became cumbersome
enough for Congress to have the ‘general and permanent’ law in
force codified. The result was the Revised Statutes of the United
States, a.k.a the Revised Statutes of 1873, published in 1875 as
volume 18, part 1 of the U.S. Statutes. The volume repealed all
law in force on 1 December 1873 and replaced it. A second
edition of volume 18, part 1 was published in 1878 with enacted
corrections to the codification, called the Revised Statutes of 1878
(thereby connoting an unavoidable inconsistency of convention).
The second edition of volume 18, part 1 was only an indicative
codification, not a superseding codification. The 1878 codifica-
tion, still embodying the law in force on 1 December 1873, did not
kindly repeal the limited amendatory chaining by statute upon
which it was based. In the event of an identified discrepancy, the
corpus of piecemeal statutes left in force would prevail. Hence,
the Revised Statutes of 1878 are said to be prima facie, whereas
the Revised Statutes of 1873 like all enacted statutes are said to be
positive law, except as repealed of course. The distinction
between the two types of legal status has become more crucial
with time. Another codification was attempted from 1897 to 1907,
but codification of only a small fraction of laws of a general and
permanent nature was enacted. Members of the House of Repre-
sentatives tried again in the early 1920s, but the Senate would not
assent. Finally, the 69th Congress agreed, and on 30 June 1926
President Calvin Coolidge approved an act to codify the law in
FURTHER REVIEW 349
force on 7 December 1925 and another to publish it as volume 44,

part 1. The 1926 codification was prima facie the law. However,
standing virtue of a codification unavoidably requires continuous
pursuit. The U.S. Government has published a version of the
United States Code (U.S.C.) every six years since 1934. Now in
the young 21st century the incomplete breadth of codification, and
the positive law therein, represents partial victory over an arduous,
expanding challenge. The Code is divided into a descending hier-
archy of title, chapter, subchapter (where used), part (where used),
and section. The title and section numbers are enough to unam-
biguously identify a section of code (e.g. 26 U.S.C. 3101). The
Code is published on the Web by GPO (http://www.gpoaccess.gov
/uscode) and also the U.S. House of Representatives
(http://uscode.house.gov). The online U.S. Code from the Legal
Information Institute of Cornell University (http://
www.law.cornell.edu/uscode) has been eminently more usable
than what the U.S. Government has been providing. There you
may access readable text by title and section numbers. The
“Notes” link provides information about the applicable statutes
with corresponding links to the Thomas and Century of
Lawmaking portals of the Library of Congress. From Thomas
with a little navigation you may download the referenced acts from
the GPO website. Caution: Some acts are from a period too late
for coverage by the Century of Lawmaking and too early for
coverage by Thomas, and so are not available by hyperlink
through the Cornell website. The GPO's coverage, like that of
Thomas, extends back from the present only so far.
The division hierarchy of the U.S. Code is confusingly similar
to that of the Immigration and Nationality Act (INA) with corre-
sponding sections numbered differently. A description of the INA,
and the INA itself as amended, are accessible online from U.S.
Citizenship and Immigration Services. The Employment and
Training Administration (ETA) website describes the legal basis of
the H–1 Technical Skills Training Grant Program. I noticed text
from the American Competitiveness and Workforce Improvement
Act of 1998 (ACWIA 1998), Pub. L. 105–277 as posted on 30
May 2006 by the ETA was not the complete act and omitted the
permanently enacted loophole to the H–1B cap for universities and
affiliated nonprofit entities, nonprofit research organizations, and
governmental research organizations. I recommend obtaining
statutes directly from the GPO website. The text search feature
350 FURTHER REVIEW
applicable to electronic copies is invaluable. The statutes

published by the Government Printing Office are accessible from
the Web pages of the Thomas portal for corresponding bills.
Federal laws charge the executive branch with duties that at
times pragmatically require establishment of formal interpretation
and convention. The specialists of the executive branch codify the
practical minutia Congress has delegated. The result is the Code
of Federal Regulations (CFR), having a hierarchical structure
similar to the U.S.C. The CFR embodies legal provisions
subservient to acts of Congress. Where to begin?
FURTHER REVIEW 351
Table FR.1 Legislative Web Resources

Entity Description
(URL w/o ‘http://’)
U.S. Government Printing Office Public printer of the U.S. Govern-
(www.gpoaccess.gov ment and a comprehensive source
and www.gpo.gov) of recent legislation and codifica-
tion.
THOMAS Public portal of the Library of
(www.thomas.gov or Congress to current and historical
thomas.loc.gov) records of federal legislative
activities reaching back (variably
by category) to roughly the early
1990s.
A Century of Lawmaking for a An American Memory collection
New Nation of the Library of Congress to
(memory.loc.gov/ammem historical records of federal
/amlaw/lawhome.html) legislative activities 1774–1875.
The Legal Information Institute's This Cornell Law School portal is
Collection of U.S. Code user friendly with easy navigation
(www.law.cornell.edu/uscode) and a link to notes for each
section.
U.S. Citizenship and Immigration The INA found here is possibly
Services more current than online versions
(www.uscis.gov) of U.S. Code, Title 8, Chapter 12.
The National Archives A source of executive orders.
(www.archives.gov)
Public Access to Court Electronic Registration required. See site for
Records (PACER) System potential cost. As I write this,
(pacer.psc.uscourts.gov) yearly charges not over $10 will
be waived. (Sadly, it behooves
me to say: Any charges you may
incur are not my responsibility.)
352 FURTHER REVIEW
The next table, table FR.2, presents a chronological framework

of U.S. legislative history to apply supplementally to the discourse
of this book. It is a pedagogic framework put on record so that
one day a future democratic people may intelligently and aptly
decide what the law should be; may for themselves be the living,
breathing constitution of the land to which the law owes; and may
understand that all peoples however remiss have been so all along.
The final column of table FR.2 indicates an array of relations
with subsequent acts and the U.S. Code. The accuracy and
completeness of that information is not guaranteed. To indicate a
portion of the U.S. Code that owes at least in part its description to
the act or resolution in question, the part of the U.S. Code is
simply listed. To indicate the act or resolution in question has no
bearing on current law, an em dash is used. To indicate that the act
or resolution in question may or may not have bearing on current
law in our universe of discourse or otherwise, a question mark is
shown. Complete repeal of the act or resolution in question by a
subsequent act or resolution is indicated with ‘r.’. Partial repeals
are indicated with ‘pr.’. Partial amendment by a subsequent act or
resolution is indicated with ‘pa.’. A total rewrite superseding the
act or resolution in question is indicated with ‘trw.’. If a total
rewrite effects only a portion of what U.S. Code originally owed
its description to the act or resolution in question, that portion is
explicitly identified. I make the distinction between repeal and
rewrite simply because sometimes previous law is nullified by
explicit use of the word or word stem ‘repeal’, and sometimes by
merely replacing a portion of the law in force; no opinion is
offered to what legal distinction there may or may not be. An act
identified in the final column is usually but not always the subject
of a later row entry. U.S. Code topically related to the act or reso-
lution in question without technically owing its description to the
same, as chosen for presentation, is indicated with ‘cf.’.
Because U.S. law is amendatory, readily obfuscated, and
continues to evolve, and because U.S. lawmakers have undoubt-
edly practiced the arts of subterfuge and pork, this listing (like this
entire work) should not be considered legally definitive of what
the law has been or is. No warranty is made whatsoever. Please
bear that in mind, the litigious vermin I despise.
FURTHER REVIEW 353
Table FR.2 A Chronology of U.S. Lawmaking

Short Title or Public Law with Statute Topical U.S. Code
(Description) Date or (Chapter) Citation and and Subsequent
Citation (Ambiguity) Acts
(An Act to Prohibit (Act of 1 Stat. 347 —
the Carrying On of 22 March 1794,
the Slave Trade) ch. 11)
the Importation of 2 March 1807,
Colored Slaves) ch. 22)
(An Act to Authorize (Act of 11 Stat. 257 —
the Issue of Treasury 23 December 1857,
Notes) ch. 1)
(An Act Authorizing (Act of 12 Stat. 79 —
a Loan and Providing 22 June 1860,
for the Redemption ch. 180)
of Treasury Notes)
(Morrill Tariff Act) (Act of 12 Stat. 178 —
2 March 1861,
ch. 68)
(An Act to Authorize (Act of 12 Stat. 259 —
a National Loan and 17 July 1861,
for Other Purposes) ch. 5)
(An Act to Provide (Act of 12 Stat. 292 —
Increased Revenue, 5 August 1861,
Pay Interest on the ch. 45)
Public Debt, Etc.)
(An Act Supplemen- (Act of 12 Stat. 313 —
tary to an Act Enti- 5 August 1861,
tled “An Act to ch. 46)
Authorize a National
Loan, and for Other
Purposes”)
the Coolie Trade by 19 February 1862,
Americans) ch. 27)
(First Legal Tender (Act of 12 Stat. 345 —
Act, 1862) 25 February 1862,
ch. 33)
(First Homestead (Act of 12 Stat. 392 —
Act, 1862) 20 May 1862,
ch. 75)
(An Act to Provide (Act of (12 Stat. 432) —
Revenue, Pay 1 July 1862,
Interest, and Oh Yah, ch. 119)
Create the IRS)
354 FURTHER REVIEW
Table FR.2 (continued) A Chronology of U.S. Lawmaking

(Second Legal (Act of 12 Stat. 532 —
Tender Act, 1862) 11 July 1862,
ch. 142)
(National Banking (Act of 12 Stat. 665 —
and Currency Act, 25 February 1863,
1863) ch. 58)
(Third Legal Tender (Act of (12 Stat. 709) —
Act, 1863) 3 March 1863,
ch. 73)
(Second Homestead (Act of 13 Stat. 35 —
Act, 1864) 21 March 1864,
ch. 38)
(National Banking (Act of (13 Stat. 99) —
and Currency Act, 3 June 1864,
1864) ch. 106)
(An Act to Prohibit (Act of (13 Stat. 132) —
Certain Sales of Gold 17 June 1864, r. (Act to Repeal)
and Foreign ch. 127)
Exchange)
(An Act to Repeal the (Act of (13 Stat. 344) —
Act prohibiting 2 July 1864,
certain sales of gold ch. 209)
and foreign
exchange)
(An Act to Encourage (Act of (13 Stat. 385) —
Immigration, 1864) 4 July 1864, r. (C. & D. Act,
ch. 246) 1868)
(Consular and Diplo- (Act of 15 Stat. 56 —
matic Act, 1868) 30 March 1868,
ch. 38)
(An Act to Prohibit (Act of 18, part 3, Stat. —
the Coming of 3 March 1875, 477
Oriental Prostitutes) ch. 141) (Pagination not
contiguous.)
(An Act to Prohibit (Act of (22 Stat. 58) —
the Coming of 6 May 1882,
Chinese Laborers, ch. 126)
1882)
(Foran Act) (Act of (23 Stat. 332) —
26 February 1885, r. INA
ch. 164)
FURTHER REVIEW 355

(Foran Law Amend- (Act of (24 Stat. 414) —
ment Act, 1887) 23 February 1887, r. INA
ch. 220)
(An Act to Establish (Act of 25 Stat. 182 —
a Department of 13 June 1888,
Labor, 1888) ch. 389)
(An Appropriations (Act of (25 Stat. 565) —
Act amending Foran 19 October 1888, pr. INA
Law, 1888) ch. 1210)
(Sherman Anti-trust (Act of (26 Stat. 209) 15 U.S.C. 1–7
Act) 2 July 1890,
ch. 647)
(Foran Law Amend- (Act of (26 Stat. 1084) —
ment Act, 1891) 3 March 1891, pr. INA
ch. 551)
(Foran Law Amend- (Act of 27 Stat. 569 —
ment Act, 1893) 3 March 1893, pr. INA
ch. 206)
(A Tax Act with an (Act of 28 Stat. 509 —
Unconstitutional 15 August 1894, ‘pr.’ Supreme
Income Tax) ch. 349) Court
(An Act to Establish (Act of (32 Stat. 825) ?
the Department of 14 February 1903,
Commerce and ch. 552)
Labor, 1903)
(An Act Making (Act of 34 Stat. 669 —
Appropriations for 30 June 1906, reinstituted by
the Department of ch. 3913) Act of
Agriculture, 1906– 4 March 1907,
1907) ch. 2907
(Pure Food and Drug (Act of 34 Stat. 768 —
Act) 30 June 1906, r. 25 June 1938,
ch. 3915) ch. 675
(An Act Making (Act of 34 Stat. 1256 Title 21,
Appropriations for 4 March 1907, Chapter 12
the Department of ch. 2907
Agriculture, 1907–
1908)
(An Act to Create a (Act of (37 Stat. 736) ?
Department of Labor, 4 March 1913,
1913) ch. 141)
356 FURTHER REVIEW

(Revenue Act of (Act of 38 Stat. 114 ?
1913) 3 October 1913,
ch. 16)
Federal Reserve Act (Act of (38 Stat. 251) Title 12,
23 December 1913, Chapter 3
ch. 6)
Tariff Act of 1930 (Act of 46 Stat. 590 ?
(a.k.a the Smoot- 17 June 1930,
Hawley Tariff) ch. 497)
(First Glass-Steagall (Act of 47 Stat. 56 ?
Act) 27 February 1932,
ch. 58)
(Emergency Banking (Act of 48 Stat. 1 ?
Relief Act) 9 March 1933,
ch. 1)
(Agricultural Adjust- (Act of 48 Stat. 31 Title 7,
ment Act) 12 May 1933, Chapter 26
ch. 25)
(Joint Resolution to (Resolution of 48 Stat. 112 —
Assure Uniform 5 June 1933,
Value of Coins and ch. 48)
Currencies.)
Banking Act of 1933 (Act of 48 Stat. 162 Title 12,
(a.k.a. (Second) 16 June 1933, Chapter 16
Glass-Steagall Act) ch. 89) pr. G.-Leach-
Bliley Act
Gold Reserve Act of (Act of 48 Stat. 337 —
1934 30 January 1934,
ch. 6)
Securities Exchange (Act of 48 Stat. 881 Title 15, Chapter
Act of 1934 6 June 1934, 2B–1
ch. 404)
Social Security Act (Act of 49 Stat. 620 26 U.S.C. 3101
14 August 1935, and 3111; Title 42,
ch. 531) Chapter 7
Banking Act of 1935 (Act of 49 Stat. 684 12 U.S.C. 1811
23 August 1935, Notes
ch. 614)
Federal Food, Drug, (Act of 52 Stat. 1040 Title 21,
and Cosmetic Act 25 June 1938, Chapter 9
ch. 675)
FURTHER REVIEW 357

Administrative (Act of 60 Stat. 237 —
Procedure Act 11 June 1946, pa. (Freedom of
ch. 324) Information Act)
r. (Act to Codify
Title 5)
National Security Act (Act of 61 Stat. 495 50 U.S.C. 402
of 1947 26 July 1947,
ch. 343)
Central Intelligence (Act of 63 Stat. 208 50 U.S.C. 403a–c,
Agency Act of 1949 20 June 1949, e–h, j, k, and t,
ch. 227) especially 403f
Immigration and (Act of 66 Stat. 163 Title 8
Nationality Act (a.k.a 27 June, 1952,
INA) ch. 477)
(Joint Resolution (Resolution of 68 Stat. 249 4 U.S.C. 4
Adding ‘Under God’ 14 June 1954,
to the Pledge of Alle- ch. 297)
giance)
Internal Revenue (Act of 68 Stat. 730 for Title 26
Code of 1954 16 August 1954, stub; Vol. 68A
ch. 736) is text.
(An Act for the (Act of (69 Stat. 290) 31 U.S.C. 5114
Inscription of ‘In 11 July 1955, notes
God We Trust’ on All ch. 303)
U.S. Money)
(Joint Resolution (Resolution of (70 Stat. 732) cf. 36 U.S.C. 302
Making ‘In God We 30 July 30 1956,
Trust’ the National ch. 795)
Motto)
(Migrant Health Pub. L. 87–692, 76 Stat. 592 cf. 42 U.S.C. 254b
Centers Act) 25 September 1962 trw. Pub. L. 104–
299
(Medicare-Medicaid Pub. L. 89–97, 79 Stat. 286 Title 42,
Act) 30 July 1965 Chapter 7,
Subchapters 18
and 19
Voting Rights Act of Pub. L. 89–110, 79 Stat. 437 Title 42,
1965 6 August 1965 Chapter 20,
Subchapter 1–A
(Freedom of Informa- Pub. L. 89–487, 80 Stat. 250 —
tion Act) 4 July 1966 r. (Act to Amend
5 U.S.C. 552)
358 FURTHER REVIEW

(Act to Codify Pub. L. 89–554, 80 Stat. 378 Title 5
Title 5, Government 6 September 1966
Organization.)
(Act to Amend Pub. L. 90–23, 81 Stat. 54 5 U.S.C. 552
5 U.S.C. 552) 5 June 1967
(An Act to Amend Pub. L. 91–225, 84 Stat. 116 8 U.S.C.
the Immigration and 7 April 1970 1101(a)(15)(H),
Nationality Act, (K), and (L);
1970) 1182(e); 1184(d)
Health Maintenance Pub. L. 93–222, 87 Stat. 914 Title 42, Chapter
Organization Act of 29 December 1973 6A, Subchapter 11
1973
Federal Reserve Pub. L. 95–188, 91 Stat. 1387 12 U.S.C. 225a
Reform Act of 1977 16 November 1977
(An Act to Amend Pub. L. 95–412, 92 Stat. 907 8 U.S.C. 1152(c)
the Immigration and 5 October 1978
Nationality Act)
Full Employment and Pub. L. 95–523, 92 Stat. 1887 15 U.S.C. 1022e
Balanced Growth Act 27 October 1978
of 1978
Energy Tax Act of Pub. L. 95–618, 92 Stat. 3174 —
1978 9 November 1978
National Energy Pub. L. 95–619, 92 Stat. 3206 42 U.S.C. 6371
Conservation Policy 9 November 1978
Act
Crude Oil Windfall Pub. L. 96–223, 94 Stat. 229 26 U.S.C. 40
Profit Tax Act of 2 April 1980
1980
Intelligence Autho- Pub. L. 96–450, 94 Stat. 1975 ?
rization Act for Fiscal 14 October 1980 trw. of
Year 1981 50 U.S.C. 413 by
Pub. L. 102–88
Omnibus Budget Pub. L. 97–35, 95 Stat. 357 cf. 26 U.S.C. 162
Reconciliation Act of 13 August 1981 notes
1981
Garn-St Germain Pub. L. 97–320, 96 Stat. 1469 Title 12
Depository Institu- 15 October 1982
tions Act of 1982
Intelligence Autho- Pub. L. 99–169, 99 Stat. 1002 50 U.S.C. 414
rization Act for Fiscal 4 December 1985
Year 1986
FURTHER REVIEW 359

Consolidated Pub. L. 99–272, 100 Stat. 82 42 U.S.C. 1395dd
Omnibus Budget 7 April 1986
Reconciliation Act of
1985
Health Services Pub. L. 99–280, 100 Stat. 399 ?
Amendments Act of 24 April 1986 pa. Pub. L. 104–
1986 299
Immigration Reform Pub. L. 99–603, 100 Stat. 3359 8 U.S.C. 1160
and Control Act of 6 November 1986
1986
National Defense Pub. L. 99–661, 100 Stat. 3816 50 U.S.C. 402(g)
Authorization Act for 14 November 1986
Fiscal Year 1987
(Clusterfuck Act of Pub. L. 100–202, 101 Stat. 8 U.S.C. 1101
1988) 22 December 1987 1329–1 notes
Immigration Act of Pub. L. 101–649, 104 Stat. 4978 8 U.S.C. 1184(b),
1990 29 November 1990 (g), and (h)
Intelligence Autho- Pub. L. 102–88, 105 Stat. 429 50 U.S.C. 413,
rization Act, Fiscal 14 August 1991 413a, 413b, and
Year 1991 414
Energy Policy Act of Pub. L. 102–486, 106 Stat. 2776 42 U.S.C. 13252
1992 24 October 1992
Small Business Job Pub. L. 104–188, 110 Stat. 1755 26 U.S.C. 104
Protection Act of 20 August 1996
1996
Omnibus Consoli- Pub. L. 104–208, 110 Stat. 3009 8 U.S.C. 1255
dated Appropriations 30 September 1996 notes
Act, 1997
Omnibus Consoli- Pub. L. 105–277, 112 Stat. 2681 8 U.S.C. 1184(g)
dated and Emergency 21 October 1998
Supplemental Appro-
priations Act, 1999
Treasury and General Pub. L. 106–58, 113 Stat. 430 3 U.S.C. 102
Government Appro- 29 September 1999
priations Act, 2000
Gramm-Leach-Bliley Pub. L. 106–102, 113 Stat. 1338 12 U.S.C. 1843
Act 12 November 1999
360 FURTHER REVIEW

Intelligence Autho- Pub. L. 106–120, 113 Stat. 1606 50 U.S.C. 403–8
rization Act for Fiscal 3 December 1999 cf. 50 U.S.C. 403j
Year 2000
American Competi- Pub. L. 106–313, 114 Stat. 1251 8 U.S.C. 1184(g)
tiveness in the 17 October 2000
Twenty–first Century
Act of 2000
(An Act Making Pub. L. 106–387, 114 Stat. 1549, ?
Appropriations for 28 October 2000 1549A–1— trw. of
Agriculture, Etc.) 1549–97 21 U.S.C. 384 by
Pub. L. 108–173
American Homeown- Pub. L. 106–569, 114 Stat. 2944 12 U.S.C. 225b
ership and Economic 27 December 2000
Opportunity Act of
2000
Bipartisan Campaign Pub. L. 107–155, 116 Stat. 81 —
Reform Act of 2002 27 March 2002
Authorization for Use Pub. L. 107–243, 116 Stat. 1498 50 U.S.C. 1541
of Military Force 16 October 2002 notes
Against Iraq Resolu-
tion of 2002
United States-Chile Pub. L. 108–77, 117 Stat. 909 8 U.S.C. 1101
Free Trade Agree- 3 September 2003 (a)(15)(H)(i)(b)
ment Implementation and 1184(g)(8)(A)
Act
United States-Singa- Pub. L. 108–78, 117 Stat. 948 8 U.S.C.
pore Free Trade 3 September 2003 1184(g)(8)
Agreement Imple-
mentation Act
Medicare Prescrip- Pub. L. 108–173, 117 Stat. 2006 42 U.S.C.
tion Drug, Improve- 8 December 2003 1395y(d),
ment, and 1395dd(d), and
Modernization Act of 1395dd notes
2003
Working Families Pub. L. 108–311, 118 Stat. 1166 26 U.S.C.
Tax Relief Act of 4 October 2004 30(b)(2),
2004 45(c)(3)(A)–(C),
179A(b)(1)(B),
and 613A(c)(6)
American Jobs Pub. L. 108–357, 118 Stat. 1418 26 U.S.C. 62 and
Creation Act of 2004 22 October 2004 6426
FURTHER REVIEW 361

Consolidated Appro- Pub. L. 108–447, 118 Stat. 2809 8 U.S.C.
priations Act, 2005 8 December 2004 1184(g)(5)
Emergency Supple- Pub. L. 109–13, 119 Stat. 231 8 U.S.C.
mental Appropria- 11 May 2005 1101(a)(15)(E);
tions Act for Defense, 1184(g)(9) and
the Global War on (11)
Terror, and Tsunami
Relief, 2005
Energy Policy Act of Pub. L. 109–58, 119 Stat. 59442 USC 7545(o),
2005 8 August 2005 1337(a)(3)(B),
15905, and 15910
Foreign Operations, Pub. L. 109–102, 119 Stat. 2172 cf. 31 U.S.C.
Export Financing, 14 November 2005 1501(a)(5)(C)
and Related
Programs Appropria-
tions Act, 2006
(Joint Resolution for Pub. L. 109–447, 120 Stat. 3327 —
a Day's More Vaca- 22 December 2006
tion)
Housing and Pub. L. 110–289, 122 Stat. 2654 12 U.S.C. 1431,
Economic Recovery 30 July 2008 1455, and 1719
Act of 2008
(Socialist Lite $700 Pub. L. 110–343, 122 Stat. 3765 31 U.S.C. 3101
Billion Bailout Act) 3 October 2008
362 FURTHER REVIEW
Nonlegislative Web Resources
The demand to know the worst will grow in emphasis until the
worst is known, and the present is as favorable a period as will
ever occur in the history of workingmen or of the country for
adjustments and readjustments.
—Frank P. Sargent, Grand Master of the Brotherhood of
Locomotive Firemen
Table FR.3 Nonlegislative Web Resources

Entity Description
American Memory Public portal of the Library of
(memory.loc.gov) Congress to a rich digital record
of American history and creativ-
ity.
Making of America Digital library of primary sources
(www.hti.umich.edu/m/moagrp/, in American social history from
and cdl.library.cornell.edu/moa/) the antebellum period through
Reconstruction. The materials
available via the two Web portals
are similar but not identical.
The American Presidency Project Digital archive of documents
(www.presidency.ucsb.edu) relating to the U.S. presidency.
U.S. Census Bureau Note the breakdown of congres-
sional election results in the 2001
(www.census.gov, especially
Statistical Abstract of the United
www.census.gov/prod/www
States. The 2006 version requires
/abs/statab.html) payment for certain election data.
U.S. Department of Labor (DOL) A U.S. Government statistical
(www.dol.gov) department with many useful
agencies.
Employment and Training Provides services to the U.S.
Administration of the DOL labor force, including oversight of
(www.doleta.gov) the legal importation of foreign
labor.
Bureau of Labor Statistics The principal fact-finding agency
of the DOL for labor statistics, including CPI.
(www.bls.gov)
FURTHER REVIEW 363
Table FR.3 (continued) Nonlegislative Web Resources

Entity Description
U.S. Central Intelligence Publisher of The World Factbook
Agency (CIA) and source of declassified U.S.
(www.cia.gov) documents.
Bureau of Economic Analysis A U.S. Government statistical
within the U.S. Department of agency estimating GDP.
Commerce
(www.bea.gov)
U.S. Department of Homeland The post-9/11 department
Security (DHS) managing national security issues.
(www.dhs.gov)
The U.S. Citizenship and Immigra- The U.S. Government agency
tion Services of the DHS administering immigrant and
(www.uscis.gov) nonimmigrant policies.
Office of Immigration Statistics Office developing and dissemi-
within the nating statistical information for
Office of Policy of the DHS the DHS.
(www.dhs.gov/ximgtn/statistics/)
The Federal Research Division of Studies of countries, terrorism,
the U.S. Library of Congress and more.
(www.loc.gov/rr/frd/)
USA.gov Web Portal Official Web portal of the U.S.
(www.usa.gov) Government.
U.S. White House, Senate, and Web sites of the U.S. White
House House, Senate, and House of
(www.whitehouse.gov, Representatives, respectively.
www.senate.gov, and Press releases, biographies, etc.
are available from government
www.house.gov) leaders.
Biographical Dictionary Portal of Official online biographical
Congress dictionary of the U.S. Congress
(bioguide.congress.gov) spanning 1774 to the present.
Center for Immigration Studies An organization doing compre-
(www.cis.org) hensive research on immigration.
364 FURTHER REVIEW
Table FR.3 (continued) Nonlegislative Web Resources

Entity Description
Pew Hispanic Center A research organization esti-
(pewhispanic.org) mating the population of unautho-
rized migrants in the U.S.
Federation of American Scientists An organization of researchers
(www.fas.org) and innovators with an online
repository of documents pertinent
to public policy evaluation.
Open CRS A Web-based utility by the Center
(www.opencrs.com) for Democracy & Technology for
finding and retrieving electronic
copies of reports by the Congres-
sional Research Service.
WikiLeaks An organization hosting a clear-
(www.wikileaks.org) inghouse of anonymously
disclosed documents for exposing
corrupt governance to public
transparency on a global basis.
NEW WORLD ORDER
First they came for the communists, and I did not speak out
because I was not a communist. Then they came for the socialists,
and I did not speak out because I was not a socialist. Then they
came for the trade unionists, and I did not speak out because I
was not a trade unionist. Then they came for the Jews, and I did
not speak out because I was not a Jew. Then they came for me,
and there was no one left to speak out.
—Martin Niemöller (1892–1984), concentration camp surviver,
attributive originator of the quote
Just as we did not hesitate on June 30th, 1934 to do the duty we
were bidden, and stand comrades who had lapsed, up against the
wall and shoot them, so we have never spoken about it and will
never speak of it.
—Heinrich Himmler (1900–1945), Head of Schutzstaffel
King Bush I saw a thousand points of light in us on 29 January

1991. We can burn away the pall of Utopian doublespeak by
owning ourselves. History shows the way. If you want to make a
difference, I suggest studying the path walked by Terence V.
Powderly. His Thirty Years of Labor, 1859–1889 (1890) describes
a template for organization and action. His interview in the New-
York Times, 4 August 1883, page 5, column 3 gave critical advice:
“I am heartily for a return to his [Uriah Stephens'] doctrine of
secrecy. I think it was a mistake to depart from it. The name,
membership, and doings of our order should be kept entirely from
the public.” Today we don't face the problem of fallacious laissez
faire on a national scale like the Knights of Labor did. We face it
on the global scale. We face the same corruptions, the same effi-
ciencies, and the same consolidations. It is the same old fixed
enterprise. Eventually, the common people suffered long enough
and looked hard enough to realize there are rules to free enterprise
applicable within national bounds. Our great-great-grandparents
had to correctly determine and impose ‘the rules’ to find relief.
365
366 NEW WORLD ORDER
Capitalist pooling arrangements and business trusts were and

are wrong because they violate the principle of shared, maximized
vitality. Maximized efficiency is not maximized prosperity, and
neither quality is vitality. There is a spiritual or inner vitality
distinct from physical or outer vitality. Inner vitality is the prefer-
ence for liberty, and the two types of vitality are interdependent,
making the limitations additive. The common good goes only as
far as vitality goes, not prosperity. Vitality without prosperity is
death. Prosperity without vitality is gluttony. The latter condition
is the death of endowing social relations. It is gratuitous death
assessed by communal justice as opposed to the ecologically puri-
fying death assessed by individual justice to the former condition.
Mother Nature is happy to run a tab, escalate the penalty scope,
and send out the thugs when the party is over. The common good
is exactly the goodness of a common privilege and burden of inter-
connected social mobility. Charity, though beautiful at times, is to
vitality what a bouquet is to a flower garden. Regardless of human
motives, certain social behavior is simply destructive to society.
This fundamental concept was memorably declared some two
hundred years ago. Breaking ‘the rules’ is a violation and a
reprieve of life, liberty, and the pursuit of happiness supposed to
be inalienable to Americans, all the way to the grave. The
common good is the shared vitality embracing the gift and respon-
sibility of liberty, something securable only by social contract.
The social contract exists, lives, only in culture, and culture is the
aggregate of individual psychology. Once the heart is ready, the
mind can be applied to determining the rules of the new global
game.
It is not a question of whether we are headed toward a global
government; it is a question of how and what kind. It seems to me
we are at the beginning of the end game. When technology accel-
erates so too does the unfolding of history. Since we have, or had
and might recover, such preeminently high social, economic, and
cultural standards in the United States, may I suggest we join
global government late, after most of the bugs are worked out?
May I suggest we work out the bugs in global socioeconomics and
global culture now? Having adequate psychological and cultural
merits around the world is prerequisite for an astute leading nation
that has as much total psychological and cultural merit as anyone
and more than most. Hence, the tendency of premature globaliza-
tion is to destroy American merits. We need to settle ‘the global
NEW WORLD ORDER 367
rules’, definition and implementation. In fact, that process has

been going on for quite some time. Seen the drama? We need to
reassert our political mechanisms as national republicanism and to
work out the global socioeconomic and cultural mechanisms first.
Nobody from the global complex asked for your opinion? Then I
guess your opinion has yet to count, huh?
Instead of weakening ourselves by waiting for the rest of the
world to catch up, we could again be the greatest collection of
people on earth without question. If we are not accelerating our
cultural sophistication like our technology, we do not compare
with our societal forebears who had less material means. If we
were to achieve greatness by the standard and the expectation of
American history, we could globalize on our terms. Others want
to join us individually now. Why can't they join us collectively
without leaving home? We could provisionally accept other
nations as our territories without reciprocation. Our citizens would
be provisional citizens of the territory, but their citizens would be
foreign nationals to the United States. If they did not progres-
sively and happily acculturate and assimilate, the relationship
would be aborted. If they did assimilate, mutual and democratic
approval would culminate their entry as a State into the United
States of America. I can't stress enough the risk of embracing a
deficient or just incompatible culture. That's why the United
Nations scares me. Heck, without States' rights—material only by
right of secession—the United States scares me. But the complete
risk is not having an adequate global culture and government. The
mundane problems of global connectivity are dangerous enough.
Then there's genetic engineering that could be horribly misused.
Allowing the creation of artificial intelligence that makes humans
obsolete—erhhh—capisci? Yet we can't stop globalization any
more than we can stop the human quest to have more. The fact is
that globalization is an embrace requiring our skillful attention.
We have been divided and conquered by our own comfortable
stagnation. The globe's republican mechanisms are antiquated, of
a scope generally limited to the West, and of a capacity generally
national whereas the governing mechanisms are global and insular.
Slave power of the antebellum South had no secret organization
uniting the whole. The slave economy itself was the unifying
organization. So it is with the global economy. Anyone with a
principal piece of the global economy is a vested member of
368 NEW WORLD ORDER
‘global power’. It's not much comfort, but should global power be
established it will be consolidated. Many ‘brown shirt’ dogs will
have their reward.
For those of you who wish to have a say in the new politics, I
further suggest organizing in the fashion advocated by Terence
Powderly. Think nationally and act locally. Start a small group
library or group reading list. You must know that I would consider
two books essential, but don't leave behind a purchase trail. What
would the fundamental beliefs and goals of your group be in say
100 words or less? What group actions could you take? Regard-
less of your situation and perspective, intellectualism is the first
tool. Consciously start at the axiomatic beginning and choose
your fundamental beliefs well. Know your world, share and
debate ideas, improve understanding, vet and gather and archive
the facts, including names and faces, prepare yourself for adver-
sity, blend in, and continue living in the now. Choose a pithy
name for your organization if you like, but keep it secret. Gener-
ally use innocuous reference. Never publicly solicit nor openly
receive members into your club. Never debase the group's psycho-
logical standards or cultural integrity with joiners.
The number of active languages and cultures of the world must
decline. Not every culture has earned admission to the present.
Progressively fewer cultures, and peoples, will deserve a future.
We must not join them. We must not let them join us without dili-
gent, assimilative apprenticeship. The danger is that the culture
left standing will not necessarily be all that great, but the chal-
lenges will be greater. Just globalization requires just global
governance, and just global governance requires the rejection of
unjust people and peoples. Some humanity must go for humanity
to grow, or stagnate, or decline. Losers must be if any are free.
People tend to attach their identities to the ideas they happen to
already have, not to great ideas. It's like pasting your soul on a
worldly target and then defying the world like a mother hen. I
imagine war veterans have suffered greatly from having identities
attached to failed war missions governed by political expediency
that has long past. The philosophy guiding my identity is to be the
best I can now, to discard lesser values for greater ones every
chance I get. No worldly temple physical or abstract, save perhaps
my person, houses my identity. In some sense the universe is my
temple; in another it is my cage. This existence is what it is
because I respect the practical limits of my insanity.
NEW WORLD ORDER 369
We will not prevail by strictly defensive measures because no

one who plays to not loose deserves to win. Yet unless circum-
stances become dire enough to interrupt the status quo of gluttony
and complacency, guarded wisdom recognizes the necessity of
prudence. Let the content of our character eschew a collapse of
the decent rule of law, but recognize the paradigm shift it would
bring. Such is not only an opportunity to go on utter offense; it is
a directive to go on utter offense. Surely our arms-issued brothers
would never submit to being a working class hired to dirtily subju-
gate the working class which bore them. Man-made law exists
only by the permission of natural law. Natural law sanctions
popular sovereignty just as it regulates social excellence and just
as it alone endows any man-made law that has ever been endowed.
While we are pleasantly hampered by something to defend in
the midst of affluent fools, we have every opportunity to compile a
who's who of our society's architects and their deeds. Give up the
popular notion that Americans need to ‘wake up’ as if being an
American today demonstrates such a capacity. We have every
opportunity to preserve, defend, and perfect by clique the very best
of American culture and to seed for a future befitting American
greatness of the past.
Oh, how sweet this historic anomaly civilized freedom is. I
hope we deserve it still. If we do, we are innumerable points of
light. We have an inestimable membership in spirit. We share a
public personification. We have our own ideas about the New
World Order. A newer world order is haunting the global complex
—the Order of the Knights of Enlightenment.
APPENDICES
1. The Declaration of Independence (1776)
Source: U.S.C. 2006 ed., Vol. 1, pp. XLV–XLVII.

Note: The original declaration neither had paragraph breaks nor
state headings for the signature groups, with the signature of
Matthew Thornton actually after that of Oliver Wolcott.
IN CONGRESS, JULY 4, 1776

The unanimous Declaration of the thirteen united
States of America
WHEN in the Course of human events, it becomes necessary for
one people to dissolve the political bands which have connected
them with another, and to assume the powers of the earth, the
separate and equal station to which the Laws of Nature and of
Nature's God entitle them, a decent respect to the opinions of
mankind requires that they should declare the causes which impel
them to the separation.
We hold these truths to be self-evident, that all men are created
equal, that they are endowed by their Creator with certain unalien-
able Rights, that among these are Life, Liberty and the pursuit of
Happiness. That to secure these rights, Governments are instituted
among Men, deriving their just powers from the consent of the
governed,—That whenever any Form of Government becomes
destructive of these ends, it is the Right of the People to alter or to
abolish it, and to institute new Government, laying its foundation
on such principles and organizing its powers in such form, as to
them shall seem most likely to effect their Safety and Happiness.
Prudence, indeed, will dictate that Governments long established
should not be changed for light and transient causes; and accord-
ingly all experience hath shewn, that mankind are more disposed
to suffer, while evils are sufferable, than to right themselves by
371
372 APPENDICES
abolishing the forms to which they are accustomed. But when a

long train of abuses and usurpations, pursuing invariably the same
Object evinces a design to reduce them under absolute Despotism,
it is their right, it is their duty, to throw off such Government, and
to provide new Guards for their future security.—Such has been
the patient sufferance of these Colonies; and such is now the
necessity which constrains them to alter their former Systems of
Government. The history of the present King of Great Britain is a
history of repeated injuries and usurpations, all having in direct
object the establishment of an absolute Tyranny over these States.
To prove this, let Facts be submitted to a candid world.
He has refused his Assent to Laws, the most wholesome and
necessary for the public good.
He has forbidden his Governors to pass Laws of immediate and
pressing importance, unless suspended in their operation till his
Assent should be obtained; and when so suspended, he has utterly
neglected to attend to them.
He has refused to pass other Laws for the accommodation of
large districts of people, unless those people would relinquish the
right of Representation in the Legislature, a right inestimable to
them and formidable to tyrants only.
He has called together legislative bodies at places unusual,
uncomfortable, and distance from the depository of their public
Records, for the sole purpose of fatiguing them into compliance
with his measures.
He has dissolved Representative Houses repeatedly, for
opposing with manly firmness his invasions on the rights of the
people.
He has refused for a long time, after such dissolutions, to cause
others to be elected; whereby the Legislative powers, incapable of
Annihilation, have returned to the People at large for their exer-
cise; the State remaining in the mean time exposed to all the
dangers of invasion from without, and convulsions within.
He has endeavoured to prevent the population of these States;
for that purpose obstructing the Laws for Naturalization of
Foreigners; refusing to pass others to encourage their migrations
hither, and raising the conditions of new Appropriations of Lands.
He has obstructed the Administration of Justice, by refusing his
Assent to Laws for establishing Judiciary powers.
He has made Judges dependent on his Will alone, for the tenure
of their offices, and the amount and payment of their salaries.
A.1 The Declaration of Independence (1776) 373
He has erected a multitude of New Offices, and sent hither

swarms of Officers to harass our people, and eat out their
substance.
He has kept among us, in times of peace, Standing Armies
without the Consent of our legislatures.
He has affected to render the Military independent of and supe-
rior to the Civil power.
He has combined with others to subject us to a jurisdiction
foreign to our constitution, and unacknowledged by our laws;
giving his Assent to their acts of pretended Legislation:
For quartering large bodies of armed troops among us:
For protecting them, by mock Trial, from punishment for any
Murders which they should commit on the Inhabitants of these
States:
For cutting off our Trade with all parts of the world:
For imposing Taxes on us without our Consent:
For depriving us in many cases, of the benefits of Trial by Jury:
For transporting us beyond Seas to be tried for pretended
offenses:
For abolishing the free System of English Laws in a neigh-
bouring Province, establishing therein an Arbitrary government,
and enlarging its Boundaries so as to render it at once an example
and fit instrument for introducing the same absolute rule into these
Colonies:
For taking away our Charters, abolishing our most valuable
Laws, and altering fundamentally the Forms of our Governments:
For suspending our own Legislatures, and declaring themselves
invested with power to legislate for us in all cases whatsoever.
He has abdicated Government here, by declaring us out of his
Protection and waging War against us.
He has plundered our seas, ravaged our Coasts, burnt our towns,
and destroyed the lives of our people.
He is at this time transporting large Armies of foreign Merce-
naries to compleat the works of death, desolation and tyranny,
already begun with circumstances of Cruelty & perfidy scarcely
paralleled in the most barbarous ages, and totally unworthy the
Head of a civilized nation.
He has constrained our fellow Citizens taken Captive on the
high Seas to bear Arms against their Country, to become the
executioners of their friends and Brethren, or to fall themselves by
their Hands.
374 APPENDICES
He has excited domestic insurrections amongst us, and has

endeavoured to bring on the inhabitants of our frontiers, the merci-
less Indian Savages, whose known rule of warfare, is an undistin-
guished destruction of all ages, sexes and conditions.
In every stage of these Oppressions We have Petitioned for
Redress in the most humble terms: Our repeated Petitions have
been answered only by repeated injury. A Prince, whose character
is thus marked by every act which may define a Tyrant, is unfit to
be the ruler of a free people.
Nor have We been wanting in attentions to our Brittish brethren.
We have warned them from time to time of attempts by their legis-
lature to extend an unwarrantable jurisdiction over us. We have
appealed to their native justice and magnanimity, and we have
conjured them the the ties of our common kindred to disavow
these usurpations, which, would inevitably interrupt our connec-
tions and correspondence. They too have been deaf to the voice of
justice and of consanguinity. We must, therefore, acquiesce in the
necessity, which denounces our Separation, and hold them, as we
hold the rest of mankind, Enemies in War, in Peace Friends.
WE, THEREFORE, the Representatives of the UNITED STATES OF
AMERICA, in General Congress, Assembled, appealing to the
Supreme Judge of the world for the rectitude of our intentions, do,
in the Name, and by the authority of the good People of these
Colonies, solemnly publish and declare, That these United
Colonies are, and of Right ought to be FREE AND INDEPENDENT
STATES; that they are Absolved from all Allegiance to the British
Crown, and that all political connection between them and the
State of Great Britain, is and ought to be totally dissolved; and that
as Free and Independent States, they have full Power to levy War,
conclude Peace, contract Alliances, establish Commerce, and to do
all other Acts and Things which Independent States may of right
do. And for the support of this Declaration, with a firm reliance on
the protection of divine Providence, we mutually pledge to each
other our Lives, our Fortunes and our sacred Honor.
JOHN HANCOCK.
New Hampshire
JOSIAH BARTLET, MATTHEW THORNTON.
WM. WHIPPLE,
A.1 The Declaration of Independence (1776) 375
Massachusetts Bay
SAML. ADAMS, ROBT. TREAT PAINE,
JOHN ADAMS, ELBRIDGE GERRY.
Rhode Island
STEP. HOPKINS, WILLIAM ELLERY.
Connecticut
ROGER SHERMAN, WM. WILLIAMS,
SAM'EL HUNTINGTON, OLIVER WOLCOTT.
New York
WM. FLOYD, FRANS. LEWIS,
PHIL. LIVINGSTON, LEWIS MORRIS.
New Jersey
RICHD. STOCKTON, JOHN HART,
JNO. WITHERSPOON, ABRA. CLARK.
FRAS. HOPKINSON,
Pennsylvania
ROBT. MORRIS, JAS. SMITH,
BENJAMIN RUSH, GEO. TAYLOR,
BENJA. FRANKLIN, JAMES WILSON,
JOHN MORTON, GEO. ROSS.
GEO. CLYMER,
Delaware
CAESAR RODNEY, THO. M'KEAN.
GEO. READ,
Maryland
SAMUEL CHASE, CHARLES CARROLL OF
WM. PACA, Carrollton.
THOS. STONE,
Virginia
GEORGE WYTHE, THOS. NELSON, jr.,
RICHARD HENRY LEE, FRANCIS LIGHTFOOT LEE,
TH. JEFFERSON, CARTER BRAXTON.
BENJA. HARRISON,
376 APPENDICES
North Carolina
WM. HOOPER, JOHN PENN.
JOSEPH HEWES,
South Carolina
THOS. HEYWARD, Junr., THOMAS LYNCH, Junr.,
EDWARD RUTLEDGE, ARTHUR MIDDLETON.
Georgia
BUTTON GWINNETT, GEO. WALTON.
LYMAN HALL,
A.2 Articles of Confederation (1777) 377
2. Articles of Confederation (1777)
Source: U.S.C. 2006 ed., Vol. 1, pp. XLIX–LIII. Footnote marks

(and footnotes) are removed.
Note: These articles were ratified in 1781 with the final approval
of signatory Maryland. The nonexistence of a closing double
quote for the opening double quote starting the paragraph in
italics and the bracketed clarification within ‘re[s]pectively’ are
per the source.
To all to whom these Presents shall come, we the undersigned

Delegates of the States affixed to our Names send greeting
Whereas the Delegates of the United States of America in
Congress assembled did on the fifteenth day of November in the
Year of our Lord One Thousand Seven Hundred and Seventy-
seven, and in the Second Year of the Independence of America
agree to certain articles of Confederation and perpetual Union
between the States of Newhampshire, Massachusetts-bay,
Rhodeisland and Providence Plantations, Connecticut, New York,
New Jersey Pennsylvania, Delaware, Maryland, Virginia, North-
Caroline, South-Carolina and Georgia in the Words following, vis.
“Articles of Confederation and perpetual Union between the
States of Newhampshire, Massachusettsbay, Rhodeisland and
Providence Plantations, Connecticut, New-York, New Jersey,
Pennsylvania, Delaware, Maryland, Virginia, North-Carolina,
South-Carolina and Georgia.
ARTICLE I. The Stile of this confederacy shall be “The United
States of America.”
ARTICLE II. Each State retains its sovereignty, freedom and inde-
pendence, and every power, jurisdiction and right, which is not by
this confederation expressly delegated to the United States, in
Congress assembled.
ARTICLE III. The said States hereby severally enter into a firm
league of friendship with each other, for their common defence,
the security of their liberties, and their mutual and general welfare,
binding themselves to assist each other, against all force offered to,
or attacks made upon them, or any of them, on account of religion,
sovereignty, trade, or any other pretence whatever.
378 APPENDICES
ARTICLE IV. The better to secure and perpetuate mutual friend-

ship and intercourse among the people of the different States in the
Union, the free inhabitants of each of these State, paupers,
vagabonds and fugitives from justice excepted, shall be entitled to
all privileges and immunities of free citizens in the several States;
and the people of each State shall have free ingress and regress to
and from any other State, and shall enjoy therein all the privileges
of trade and commerce, subject to the same duties, impositions and
restrictions as the inhabitants thereof respectively, provided that
such restrictions shall not extend so far as to prevent the removal
of property imported into any State, to any other State of which the
owner is an inhabitant; provided also that no imposition, duties or
restriction shall be laid by any State, on the property of the United
States, or either of them.
If any person guilty of, or charged with treason, felony, or other
high misdemeanor in any State, shall flee from justice, and be
found in any of the United States, he shall upon demand of the
Governor or Executive power, of the State from which he fled, be
delivered up and removed to the State having jurisdiction of his
offence.
Full faith and credit shall be given in each of these States to the
records, acts and judicial proceedings of the courts and magistrates
of every other State.
ARTICLE V. For the more convenient management of the general
interests of the United States, delegates shall be annually
appointed in such manner as the legislature of each State shall
direct, to meet in Congress on the first Monday in November, in
every year, with a power reserved to each State, to recall its dele-
gates, or any of them, at any time within the year, and to send
others in their stead, for the remainder of the year.
No State shall be represented in Congress by less than two, nor
by more than seven members; and no person shall be capable of
being a delegate for more than three years in any term of six years;
nor shall any person, being a delegate, be capable of holding any
office under the United States, for which he, or another for his
benefit receives any salary, fees or emolument of any kind.
Each State shall maintain its own delegates in a meeting of the
States, and while they act as members of the committee of the
States.
In determining questions in the United States, in Congress
assembled, each State shall have one vote.
Freedom of speech and debate in Congress shall not be

impeached or questioned in any court, or place out of Congress,
and the members of Congress shall be protected in their persons
from arrest and imprisonments, during the time of their going to
and from, and attendance of Congress, except for treason, felony,
or breach of the peace.
ARTICLE VI. No State without the consent of the United States
in Congress assembled, shall send any embassy to, or receive any
embassy from, or enter into any conference, agreement, alliance or
treaty with any king, prince or state; nor shall any person holding
any office of profit or trust under the United States, or any of
them, accept any present, emolument, office or title of any kind
whatever from any king, prince or foreign state; nor shall the
United States in Congress assembled, or any of them, grant any
title of nobility.
No two or more States shall enter into any treaty, confederation
or alliance whatever between them, without the consent of the
United States in Congress assembled, specifying accurately the
purposes for which the same is to be entered into, and how long it
shall continue.
No State shall lay any imposts or duties, which may interfere
with any stipulations in treaties, entered into by the United States
in Congress assembled, with any king, prince or state, in
pursuance of any treaties already proposed by Congress, to the
courts of France and Spain.
No vessels of war shall be kept up in time of peace by any State,
except such number only, as shall be deemed necessary by the
United States in Congress assembled, for the defence of such
State, or its trade; nor shall any body of forces be kept up by any
State, in time of peace, except such numbers only, as in the judg-
ment of the United States, in Congress assembled, shall be deemed
requisite to garrison the forts necessary for the defence of such
State; but every State shall always keep up a well regulated and
disciplined militia, sufficiently armed and accoutered, and shall
provide and constantly have ready for use, in public stores, a due
number of field pieces and tents, and a proper quantity of arms,
ammunition and camp equipage.
No State shall engage in any war without the consent of the
United States in Congress assembled, unless such State be actually
invaded by enemies, or shall have received certain advice of a
resolution being formed by some nation of Indians to invade such
380 APPENDICES
State, and the danger is so imminent as not to admit of a delay, till

the United States in Congress assembled can be consulted: nor
shall any State grant commissions to any ships or vessels of war,
nor letters of marque or reprisal, except it be after a declaration of
war by the United States in Congress assembled, and then only
against the kingdom or state and the subjects thereof, against
which war has been so declared, and under such regulations as
shall be established by the United States in Congress assembled,
unless such State be infested by pirates, in which case vessels of
war may be fitted out for that occasion, and kept so long as the
danger shall continue or until the United States in Congress assem-
bled shall determine otherwise.
ARTICLE VII. When land-forces are raised by any State for the
common defence, all officers of or under the rank of colonel, shall
be appointed by the Legislature of each State respectively by
whom such forces shall be raised, or in such manner as such State
shall direct, and all vacancies shall be filled up by the State which
first made the appointment.
ARTICLE VIII. All charges of war, and all other expenses that
shall be incurred for the common defence or general welfare, and
allowed by the United States in Congress assembled, shall be
defrayed out of a common treasury, which shall be supplied by the
several States, in proportion to the value of all land within each
State, granted to or surveyed for any person, as such land and the
buildings and improvements thereon shall be estimated according
to such mode as the United States in Congress assembled, shall
from time to time direct and appoint.
The taxes for paying that proportion shall be laid and levied by
the authority and direction of the Legislatures of the several States
within the time agreed upon by the United States in Congress
assembled.
ARTICLE IX. The United States in Congress assembled, shall
have the sole and exclusive right and power of determining on
peace and war, except in the cases mentioned in the sixth article—
of sending and receiving ambassadors—entering into treaties and
alliances, provided that no treaty of commerce shall be made
whereby the legislative power of the respective States shall be
restrained from imposing such imposts and duties on foreigners, as
their own people are subjected to, or from prohibiting the exporta-
tion or importation of any species of goods or commodities what-
soever—of establishing rules for deciding in all cases, what
captures on land or water shall be legal, and in what manner prizes

taken by land or naval forces in the service of the United States
shall be divided or appropriated—of granting letters of marque and
reprisal in times of peace—appointing courts for the trial of pira-
cies and felonies committed on the high seas and establishing
courts for receiving and determining finally appeals in all cases of
captures, provided that no member of Congress shall be appointed
a judge of any of the said courts.
The United States in Congress assembled shall also be the last
resort on appeal in all disputes and differences now subsisting or
that hereafter may arise between two or more States concerning
boundary, jurisdiction or any other cause whatever; which
authority shall always be exercised in the manner following.
Whenever the legislative or executive authority or lawful agent of
any State in controversy with another shall present a petition to
Congress, stating the matter in question and praying for a hearing,
notice thereof shall be given by order of Congress to the legislative
or executive authority of the other State in controversy, and a day
assigned for the appearance of the parties by their lawful agents,
who shall then be directed to appoint by joint consent, commis-
sioners or judges to constitute a court for hearing and determining
the matter in question: but if they cannot agree, Congress shall
name three persons out of each of the United States, and from the
list of such persons each party shall alternatively strike out one, the
petitioners beginning, until the number shall be reduced to thir-
teen; and from that number not less than seven, nor more than nine
names as Congress shall direct, shall in the presence of Congress
be drawn out by lot, and the persons whose names shall be so
drawn or any five of them, shall be commissioners or judges, to
hear and finally determine the controversy, so always as a major
part of the judges who shall hear the cause shall agree in the deter-
mination: and if either party shall neglect to attend at the day
appointed, without showing reasons, which Congress shall judge
sufficient, or being present shall refuse to strike, the Congress shall
proceed to nominate three persons out of each State, and the Secre-
tary of Congress shall strike in behalf of such party absent or
refusing; and the judgment and sentence of the court to be
appointed, in the manner before prescribed, shall be final and
conclusive; and if any of the parties shall refuse to submit to the
authority of such court, or to appear or defend their claim or cause,
the court shall nevertheless proceed to pronounce sentence, or
382 APPENDICES
judgment, which shall in like manner be final and decisive, the

judgment or sentence and other proceedings being in either case
transmitted to Congress, and lodged among the acts of Congress
for the security of the parties concerned: provided that every
commissioner, before he sits in judgment, shall take an oath to be
administered by one of the judges of the supreme or superior court
of the State where the cause shall be tried, “well and truly to hear
and determine the matter in question, according to the best of his
judgment, without favour, affection or hope of reward:” provided
also that no State shall be deprived of territory for the benefit of
the United States.
All controversies concerning the private right of soil claimed
under different grants of two or more States, whose jurisdiction as
they may respect such lands, and the States which passed such
grants are adjusted, the said grants or either of them being at the
same time claimed to have originated antecedent to such settle-
ment of jurisdiction, shall on the petition of either party to the
Congress of the United States, be finally determined as near as
may be in the same manner as is before prescribed for deciding
disputes respecting territorial jurisdiction between different States.
The United States in Congress assembled shall also have the
sole and exclusive right and power of regulating the alloy and
value of coin struck by their own authority, or by that of the
respective States.—fixing the standard of weights and measures
throughout the United States.—regulating the trade and managing
all affairs with the Indians, not members of any of the States,
provided that the legislative right of any State within its own limits
be not infringed or violated—establishing and regulating post-
offices from one State to another, throughout all the United States,
and exacting such postage on the papers passing thro' the same as
may be requisite to defray the expenses of the said office—
appointing all officers of the land forces, in the service of the
United States, excepting regimental officers—appointing all the
officers of the naval forces, and commissioning all officers what-
ever in the service of the United States—making rules for the
government and regulation of the said land and naval forces, and
directing their operations.
The United States in Congress assembled shall have the
authority to appoint a committee, to sit in the recess of Congress,
to be denominated “a Committee of the States”, and to consist of
one delegate from each State; and to appoint such other commit-
tees and civil officers as may be necessary for managing the

general affairs of the United States under their direction—to
appoint one of their number to preside, provided that no person be
allowed to serve in the office of president more than one year in
any term of three years; to ascertain the necessary sums of money
to be raised for the service of the United States, and to appropriate
and apply the same for defraying the public expenses—to borrow
money, or emit bills on the credit of the United States, transmitting
every half year to the respective States an account of the sums of
money so borrowed or emitted,—to build up and equip a navy—to
agree upon the number of land forces, and to make requisitions
from each State for its quota, in proportion to the number of white
inhabitants in such State; which requisition shall be binding, and
thereupon the Legislature of each State shall appoint the regi-
mental officers, raise the men and cloath, arm and equip them in a
soldier like manner, at the expense of the United States; and the
officers and men so cloathed, armed and equipped shall march to
the place appointed, and within the time agreed on by the United
States in Congress assembled: but if the United States in Congress
assembled shall, on consideration of circumstances judge proper
that any State should not raise men, or should raise a smaller
number than its quota, and that any other State should raise a
greater number of men than the quota thereof, such extra number
shall be raised, officered, cloathed, armed and equipped in the
same manner as the quota of such State, unless the legislature of
such State shall judge that such extra number cannot be safely
spared out of the same, in which case they shall raise, officer,
cloath, arm and equip as many of such extra number as they judge
can be safely spared. And the officers and men so cloathed, armed
and equipped, shall march to the place appointed, and within the
time agreed on by the United States in Congress assembled.
The United States in Congress assembled shall never engage in
a war, nor grant letters of marque and reprisal in time of peace, nor
enter into any treaties or alliances, nor coin money, nor regulate
the value thereof, nor ascertain the sums and expenses necessary
for the defence and welfare of the United States, or any of them,
nor emit bills, nor borrow money on the credit of the United
States, nor appropriate money, nor agree upon the number of
vessels of war, to be built or purchased, or the number of land or
sea forces to be raised, nor appoint a commander in chief of the
army or navy, unless nine States assent to the same; nor shall a
384 APPENDICES
question on any other point, except for adjourning from day to day
be determined, unless by the votes of a majority of the United
States in Congress assembled.
The Congress of the United States shall have power to adjourn
to any time within the year, and to any place within the United
States, so that no period of adjournment be for a longer duration
than the space of six months, and shall publish the journal of their
proceeding monthly, except such parts thereof relating to treaties,
alliances or military operations, as in their judgment require
secresy; and the yeas and nays of the delegates of each State on
any question shall be entered on the journal, when it is desired by
any delegate; and the delegates of a State, or any of them, at his or
their request shall be furnished with a transcript of the said journal,
except such parts as are above excepted, to lay before the Legisla-
tures of the several States.
ARTICLE X. The committee of the States, or any nine of them,
shall be authorized to execute, in the recess of Congress, such of
the powers of Congress as the United States in Congress assem-
bled, by the consent of nine States, shall from time to time think
expedient to vest them with; provided that no power be delegated
to the said committee, for the exercise of which, by the articles of
confederation, the voice of nine States in the Congress of the
United States assembled is requisite.
ARTICLE XI. Canada acceding to this confederation, and joining
in the measures of the United States, shall be admitted into, and
entitled to all the advantages of this Union: but no other colony
shall be admitted into the same, unless such admission be agreed
to by nine States.
ARTICLE XII. All bills of credit emitted, monies borrowed and
debts contracted by, or under the authority of Congress, before the
assembling of the United States, in pursuance of the present
confederation, shall be deemed and considered as a charge against
the United States, for payment and satisfaction whereof the said
United States, and the public faith are hereby solemnly pledged.
ARTICLE XIII. Every State shall abide by the determinations of
the United States in Congress assembled, on all questions which
by this confederation are submitted to them. And the articles of
this confederation shall be inviolably observed by every State, and
the Union shall be perpetual; nor shall any alteration at any time
hereafter be made in any of them; unless such alteration be agreed

to in a Congress of the United States, and be afterwards confirmed
by the Legislatures of every State.
And whereas it has pleased the Great Governor of the world to
incline the hearts of the Legislatures we respectively represent in
Congress, to approve of, and to authorize us to ratify the said arti-
cles of confederation and perpetual union. Know ye that we the
undersigned delegates, by virtue of the power and authority to us
given for that purpose, do by these presents, in the name and in
behalf of our respective constituents, fully and entirely ratify and
confirm each and every of the said articles of confederation and
perpetual union, and all and singular the matters and things therein
contained: and we do further solemnly plight and engage the faith
of our respective constituents, that they shall abide by the determi-
nations of the United States in Congress assembled, on all ques-
tions, which by the said confederation are submitted to them. And
that the articles thereof shall be inviolably observed by the States
we re[s]pectively represent, and that the Union shall be perpetual.
In witness whereof we have hereunto set our hands in Congress.
Done at Philadelphia in the State of Pennsylvania the ninth day
of July in the year of our Lord one thousand seven hundred and
seventy-eight, and in the third year of the independence of
America.
On the part & behalf of the State of New Hampshire
JOSIAH BARTLETT, JOHN WENTWORTH, Junr.,
August 8th, 1778.
On the part and behalf of the State of Massachusetts Bay
JOHN HANCOCK, FRANCIS DANA,
SAMUEL ADAMS, JAMES LOVELL,
ELBRIDGE GERRY, SAMUEL HOLTEN.
On the part and behalf of the State of Rhode Island and
Providence Plantations
WILLIAM ELLERY, JOHN COLLINS.
HENRY MARCHANT,
On the part and behalf of the State of Connecticut
ROGER SHERMAN, TITUS HOSMER,
SAMUEL HUNTINGTON, ANDREW ADAMS.
OLIVER WOLCOTT,
386 APPENDICES
On the part and behalf of the State of New York

JAS. DUANE, WM. DUER,
FRA. LEWIS, GOUV. MORRIS.
On the part and in behalf of the State of New Jersey,
Novr. 26, 1778
JNO. WITHERSPOON, NATHL. SCUDDER.
On the part and behalf of the State of Pennsylvania
ROBT. MORRIS, WILLIAM CLINGAN,
DANIEL ROBERDEAU, JOSEPH REED, 22d July,
JONA. BAYARD SMITH, 1778.
On the part & behalf of the State of Delaware
THO. M'KEAN, Feby. 12, NICHOLAS VAN DYKE.
1779.
JOHN DICKINSON,
May 5th, 1779.
On the part and behalf of the State of Maryland
JOHN HANSON, DANIEL CARROLL,
March 1, 1781. Mar. 1, 1781.
On the part and behalf of the State of Virginia
RICHARD HENRY LEE, JNO. HARVIE,
JOHN BANISTER, FRANCIS LIGHTFOOT LEE.
THOMAS ADAMS,
On the part and behalf of the State of No. Carolina
JOHN PENN, CORNS. HARNETT,
July 21st, 1778. JNO. WILLIAMS.
On the part & behalf of the State of South Carolina
HENRY LAURENS, RICHD. HUTSON,
WILLIAM HENRY DRAYTON, THOS. HEYWARD, Junr.
JNO. MATHEWS,
On the part & behalf of the State of Georgia
JNO. WALTON, 24th July, EDWD. TELFAIR,
1778. EDWD. LANGWORTHY.
3. Constitution of the United States of America (1787) 387
3. Constitution of the United States of America

3. (1787)
Source: U.S.C. 2006 ed., Vol. 1, pp. LIX–LXXIII. Clause, foot-

note marks (and footnotes), and the bracketed clarification
‘[Signed also by the deputies of twelve States.]’ are removed.
Note: The inconsistent application of periods per the source is
reflected herein.
WE THE PEOPLE of the United States, in Order to form a more

perfect Union, establish Justice, insure domestic Tranquility,
provide for the common defence, promote the general Welfare,
and secure the Blessings of Liberty to ourselves and our
Posterity, do ordain and establish this Constitution for the
United States of America.
ARTICLE. I.
SECTION 1. All legislative Powers herein granted shall be vested
in a Congress of the Unites States, which shall consist of a Senate
and House of Representatives.
SECTION. 2. The House of Representatives shall be composed of
Members chosen every second Year by the People of the several
States and the Electors on each State shall have the Qualifications
requisite for Electors of the most numerous Branch of the State
Legislature.
No Person shall be a Representative who shall not have attained
to the Age of twenty five Years, and been seven Years a Citizen of
the United States, and who shall not, when elected, be an Inhabi-
tant of that State in which he shall be chosen.
Representatives and direct Taxes shall be apportioned among
the several States which may be included within this Union,
according to their respective Numbers, which shall be determined
by adding to the whole Number of free Persons, including those
bound to Service for Term of Years, and excluding Indians not
taxed, three fifths of all other Persons. The actual Enumeration
shall be made within three Years after the first Meeting of the
Congress of the United States, and within every subsequent Term
of ten Years, in such Manner as they shall by Law direct. The
Number of Representation shall not exceed one for every thirty
Thousand, but each States shall have at Least one Representative;
388 APPENDICES
and until such enumeration shall be made, the States of New

Hampshire shall be entitled to chuse three, Massachusetts eight,
Rhode-Island and Providence Plantations one, Connecticut five,
New-York six, New Jersey four, Pennsylvania eight, Delaware
one, Maryland six, Virginia ten, North Carolina five, South
Carolina five, and Georgia three.
When vacancies happen in the Representation from any State,
the Executive Authority thereof shall issue a Writs of Election to
fill such Vacancies.
The House of Representatives shall chuse their Speaker and
other Officers; and shall have the sole Power of Impeachment.
SECTION. 3. The Senate of the United States shall be composed
of two Senators from each State, chosen by the Legislature thereof,
for six Years; and each Senator shall have one Vote.
Immediately after they shall be assembled in Consequence of
the first Election, they shall be divided as equally as may be into
three Classes. The Seats of the Senators of the first Class shall be
vacated at the Expiration of the second Year, of the second Class at
the Expiration of the fourth Year, and of the third Class at the expi-
ration of the sixth Year, so that one third may be chosen every
second Year; and if Vacancies happen by Resignation, or other-
wise, during the Recess of the Legislature of any State, the Execu-
tive thereof may make temporary Appointment until the next
Meeting of the Legislature, which shall then fill such Vacancies.
No Person shall be a Senator who shall not have attained the
Age of thirty Years, and been nine Years a Citizen of the United
States, and who shall not, when elected, be an Inhabitant of that
State for which he shall be chosen.
The Vice President of the United States shall be President of the
Senate, but shall have no Vote, unless they be equally divided.
The Senate shall chuse their other Officers, and also a President
pro tempore, in the Absence of the Vice President, or when he
shall exercise the Office of President of the United States.
The Senate shall have the sole Power to try all Impeachments.
When sitting for that Purpose, they shall be on Oath or Affirma-
tion. When the President of the United States is tried, the Chief
Justice shall preside: And no Person shall be convicted without the
Concurrence of two thirds of the Members present.
Judgment in Cases of Impeachment shall not extend further than

to removal from Office, and disqualification to hold and enjoy any
Office of honor, Trust or Profit under the United States: but the
Party convicted shall nevertheless be liable and subject to Indict-
ment, Trial, Judgment and Punishment, according to Law.
SECTION. 4. The Times, Places and Manner of holding Elections
for Senators and Representatives, shall be prescribed in each State
by the Legislature thereof; but the Congress may at any time by
Law make or alter such Regulations, except as to the Places of
chusing Senators.
The Congress shall assemble at least once in every Year, and
such Meeting shall be on the first Monday in December, unless
they shall by Law appoint a different Day.
SECTION. 5. Each House shall be the Judge of the Elections,
Returns and Qualifications of its own Members, and a Majority of
each shall constitute a Quorum to do Business; but a smaller
Number may adjourn from day to day, and may be authorized to
compel the Attendance of absent Members, in such Manner, and
under such Penalties as each House may provide.
Each House may determine the Rules of its Proceedings, punish
its Members for disorderly Behaviour, and, with the Concurrence
of two thirds, expel a Member.
Each House shall keep a Journal of its Proceedings, and from
time to time publish the same, excepting such Parts as may in their
Judgment require Secrecy; and the Yeas and Nays of the Members
of either House on any question shall, at the Desire of one fifth of
those Present, be entered on the Journal.
Neither House, during the Session of Congress, shall, without
the Consent of the other, adjourn for more than three days, nor to
any other Place than that in which the two Houses shall be sitting.
SECTION. 6. The Senators and Representatives shall receive a
Compensation for their Services, to be ascertained by Law, and
paid out of the Treasury of the United States. They shall in all
Cases, except Treason, Felony and Breach of the Peace, be privi-
leged from Arrest during their Attendance at the Session of their
respective Houses, and in going to and returning from the same;
and for any Speech or Debate in either House, they shall not be
questioned in any other Place.
No Senator or Representative shall, during the Time for which
he was elected, be appointed to any civil Office under the
Authority of the United States, which shall have been created, or
390 APPENDICES
the Emoluments whereof shall have been encreased during such

time; and no Person holding any Office under the United States,
shall be a Member of either House during his Continuance in
Office.
SECTION. 7. All Bills for raising Revenue shall originate in the
House of Representatives; but the Senate may propose or concur
with Amendments as on other Bills.
Every Bill which shall have passed the House of Representa-
tives and the Senate, shall, before it become a Law, be presented to
the President of the United States; If he approve he shall sign it,
but if not he shall return it, with his Objections to that House in
which it shall have originated, who shall enter the Objections at
large on their Journal, and proceed to reconsider it. If after such
Reconsideration two thirds of that House shall agree to pass the
Bill, it shall be sent, together with the Objections, to the other
House, by which it shall likewise be reconsidered, and if approved
by two thirds of that House, it shall become a Law. But in all such
Cases the Votes of both Houses shall be determined by yeas and
Nays, and the Names of the Persons voting for and against the Bill
shall be entered on the Journal of each House respectively. If any
Bill shall not be returned by the President within ten Days
(Sundays excepted) after it shall have been presented to him, the
Same shall be a Law, in like Manner as if he had signed it, unless
the Congress by their Adjournment prevent its Return, in which
Case it shall not be a Law.
Every Order, Resolution, or Vote to which the Concurrence of
the Senate and House of Representatives may be necessary (except
on a question of Adjournment) shall be presented to the President
of the United States; and before the Same shall take Effect, shall
be approved by him, or being disapproved by him, shall be
repassed by two thirds of the Senate and House of Representatives,
according to the Rules and Limitations prescribed in the Case of a
Bill.
SECTION. 8. The Congress shall have Power To lay and collect
Taxes, Duties, Imposts and Excises, to pay the Debts and provide
for the common Defence and general Welfare of the United States;
but all Duties, Imposts and Excises shall be uniform throughout
the United States;
To borrow Money on the credit of the United States;
To regulate Commerce with foreign Nations, and among the
several States, and with the Indian Tribes;
To establish an uniform Rule of Naturalization, and uniform

Laws on the Subject of Bankruptcies throughout the United States;
To coin Money, regulate the Value thereof, and of foreign Coin,
and fix the Standard of Weights and Measures;
To provide for the Punishment of counterfeiting the Securities
and current Coin of the United States;
To establish Post Offices and post Roads;
To promote the Progress of Science and useful Arts, by securing
for limited Times to Authors and Inventors the exclusive Right to
their respective Writings and Discoveries;
To constitute Tribunals inferior to the supreme Court;
To define and punish Piracies and Felonies committed on the
high Seas, and Offences against the Law of Nations;
To declare War, grant Letters of Marque and Reprisal, and make
Rules concerning Captures on Land and Water;
To raise and support Armies, but no Appropriation of Money to
that Use shall be for a longer Term than two Years;
To provide and maintain a Navy;
To make Rules for the Government and Regulation of the land
and naval Forces;
To provide for calling forth the Militia to execute the Laws of
the Union, suppress Insurrections and repel Invasions;
To provide for organizing, arming, and disciplining, the Militia,
and for governing such Part of them as may be employed in the
Service of the United States, reserving to the States respectively,
the Appointment of the Officers, and the Authority of training the
Militia according to the discipline prescribed by Congress;
To exercise exclusive Legislation in all Cases whatsoever, over
such District (not exceeding ten Miles square) as may, by Cession
of particular States, and the Acceptance of Congress, become the
Seat of the Government of the United States, and to exercise like
Authority over all Places purchased by the Consent of the Legisla-
ture of the State in which the Same shall be, for the Erection of
Forts, Magazines, Arsenals, dock-Yards, and other needful Build-
ings;—And
To make all Laws which shall be necessary and proper for
carrying into Execution the foregoing Powers, and all other
Powers vested by this Constitution in the Government of the
United States, or in any Department or Officer thereof.
392 APPENDICES
SECTION. 9. The Migration or Importation of such Persons as

any of the States now existing shall think proper to admit, shall not
be prohibited by the Congress prior to the Year one thousand eight
hundred and eight, but a Tax or duty may be imposed on such
Importation, not exceeding ten dollars for each Person.
The Privilege of the Writ of Habeas Corpus shall not be
suspended, unless when in Cases of Rebellion or Invasion the
public Safety may require it.
No Bill of Attainder or ex post facto Law shall be passed.
No Capitation, or other direct, Tax shall be laid, unless in
Proportion to the Census or Enumeration herein before directed to
be taken.
No Tax or Duty shall be laid on Articles exported from any
State.
No Preference shall be given by any Regulation of Commerce
or Revenue to the Ports of one State over those of another: nor
shall Vessels bound to, or from, one State, be obliged to enter,
clear, or pay Duties in another.
No Money shall be drawn from the Treasury, but in Conse-
quence of Appropriations made by Law; and a regular Statement
and Account of the Receipts and Expenditures of all public Money
shall be published from time to time.
No Title of Nobility shall be granted by the United States: And
no Person holding any Office of Profit or Trust under them, shall,
without the Consent of the Congress, accept of any present, Emol-
ument, Office, or Title, of any kind whatever, from any King,
Prince, or foreign State.
SECTION. 10. No State shall enter into any Treaty, Alliance, or
Confederation; grant Letters of Marque and Reprisal; coin Money;
emit Bills of Credit; make any Thing but gold and silver Coin a
Tender in Payment of Debts; pass any Bill of Attainder, ex post
facto Law, or Law impairing the Obligation of Contracts, or grant
any Title of Nobility.
No State shall, without the Consent of the Congress, lay any
Imposts or Duties on Imports or Exports, except what may be
absolutely necessary for executing it's inspection Laws: and the net
Produce of all Duties and Imposts, laid by any State on Imports or
Exports, shall be for the Use of the Treasury of the United States;
and all such Laws shall be subject to the Revision and Controul of
the Congress.
No State shall, without the Consent of Congress, lay any Duty

of Tonnage, keep Troops, or Ships of War in time of Peace, enter
into any Agreement or Compact with another State, or with a
foreign Power, or engage in War, unless actually invaded, or in
such imminent Danger as will not admit of delay.
ARTICLE. II.
SECTION. 1. The executive Power shall be vested in a President
of the United States of America. He shall hold his Office during
the Term of four Years, and, together with the Vice President,
chosen for the same Term, be elected, as follows
Each State shall appoint, in such Manner as the Legislature
thereof may direct, a Number of Electors, equal to the whole
Number of Senators and Representatives to which the State may
be entitled in the Congress: but no Senator or Representative, or
Person holding an Office of Trust or Profit under the United States,
shall be appointed an Elector.
The Electors shall meet in their respective States, and vote by
Ballot for two Persons, of whom one at least shall not be an Inhab-
itant of the same State with themselves. And they shall make a
List of all the Persons voted for, and of the Number of Votes for
each; which List they shall sign and certify, and transmit sealed to
the Seat of the Government of the United States, directed to the
President of the Senate. The President of the Senate shall, in the
Presence of the Senate and House of Representatives, open all the
Certificates, and the Votes shall then be counted. The Person
having the greatest Number of Votes shall be the President, if such
Number be a Majority of the whole Number of Electors appointed;
and if there be more than one who have such Majority, and have an
equal Number of Votes, then the House of Representatives shall
immediately chuse by Ballot one of them for President; and if no
Person have a Majority, then from the five highest on the List the
said House shall in like Manner chuse the President. But in
chusing the President, the Votes shall be taken by States, the
Representation from each State having one Vote; A quorum for this
Purpose shall consist of a Member or Members from two thirds of
the States, and a Majority of all the States shall be necessary to a
Choice. In every Case, after the Choice of the President, the
Person having the greatest Number of Votes of the Electors shall
be the Vice President. But if there should remain two or more who
have equal Votes, the Senate shall chuse from them by Ballot the
Vice President.
394 APPENDICES
The Congress may determine the Time of chusing the Electors,

and the Day on which they shall give their Votes; which Day shall
be the same throughout the United States.
No person except a natural born Citizen, or a Citizen of the
United States, at the time of the Adoption of this Constitution,
shall be eligible to the Office of President; neither shall any Person
be eligible to that Office who shall not have attained to the Age of
thirty five Years, and been fourteen Years a Resident within the
United States.
In Case of the Removal of the President from Office, or of his
Death, Resignation, or Inability to discharge the Powers and
Duties of the said Office, the Same shall devolve on the Vice Pres-
ident, and the Congress may by Law provide for the Case of
Removal, Death, Resignation or Inability, both of the President
and Vice President, declaring what Officer shall then act as Presi-
dent, and such Officer shall act accordingly, until the Disability be
removed, or a President shall be elected.
The President shall, at stated Times, receive for his Services, a
Compensation, which shall neither be encreased nor diminished
during the Period for which he shall have been elected, and he
shall not receive within that Period any other Emolument from the
United States, or any of them.
Before he enter on the Execution of his Office, he shall take the
following Oath or Affirmation:—“I do solemnly swear (or affirm)
that I will faithfully execute the Office of President of the United
States, and will to the best of my Ability, preserve, protect and
defend the Constitution of the United States.”
SECTION. 2. The President shall be Commander in Chief of the
Army and Navy of the United States, and of the Militia of the
several States, when called into the actual Service of the United
States; he may require the Opinion, in writing, of the principal
Officer in each of the executive Departments, upon any Subject
relating to the Duties of their respective Offices, and he shall have
Power to grant Reprieves and Pardons for Offences against the
United States, except in Cases of Impeachment.
He shall have Power, by and with the Advice and Consent of the
Senate, to make Treaties, provided two thirds of the Senators
present concur; and he shall nominate, and by and with the Advice
and Consent of the Senate, shall appoint Ambassadors, other
public Ministers and Consuls, Judges of the supreme Court, and all
other Officers of the United States, whose Appointments are not
herein otherwise provided for, and which shall be established by

Law: but the Congress may by Law vest the Appointment of such
inferior Officers, as they think proper, in the President alone, in the
Courts of Law, or in the Heads of Departments.
The President shall have Power to fill up all Vacancies that may
happen during the Recess of the Senate, by granting Commissions
which shall expire at the End of their next Session.
SECTION. 3. He shall from time to time give to the Congress
Information of the State of the Union, and recommend to their
Consideration such Measures as he shall judge necessary and
expedient; he may, on extraordinary Occasions, convene both
Houses, or either of them, and in Case of Disagreement between
them, with Respect to the Time of Adjournment, he may adjourn
them to such Time as he shall think proper; he shall receive
Ambassadors and other public Ministers; he shall take Care that
the Laws be faithfully executed, and shall Commission all the
Officers of the United States.
SECTION. 4. The President, Vice President and all civil Officers
of the United States, shall be removed from Office on Impeach-
ment for, and Conviction of, Treason, Bribery, or other high
Crimes and Misdemeanors.
ARTICLE. III.
SECTION. 1. The judicial Power of the United States, shall be
vested in one supreme Court, and in such inferior Courts as the
Congress may from time to time ordain and establish. The Judges,
both of the supreme and inferior Courts, shall hold their Offices
during good Behaviour, and shall, at stated Times, receive for their
Services, a Compensation, which shall not be diminished during
their Continuance in Office.
SECTION. 2. The judicial Power shall extend to all Cases, in Law
and Equity, arising under this Constitution, the Laws of the United
States, and Treaties made, or which shall be made, under their
Authority;—to all Cases affecting Ambassadors, other public
Ministers and Consuls;—to all Cases of admiralty and maritime
Jurisdiction;—to Controversies to which the United States shall be
a Party;—to Controversies between two or more States;—between
a State and Citizens of another State;—between Citizens of
different States,—between Citizens of the same State claiming
Lands under Grants of different States, and between a State, or the
Citizens thereof, and foreign States, Citizens or Subjects.
396 APPENDICES
In all Cases affecting Ambassadors, other public Ministers and

Consuls, and those in which a State shall be Party, the supreme
Court shall have original Jurisdiction. In all the other Cases before
mentioned, the supreme Court shall have appellate Jurisdiction,
both as to Law and Fact, with such Exceptions, and under such
Regulations as the Congress shall make.
The Trial of all Crimes, except in Cases of Impeachment, shall
be by Jury; and such Trial shall be held in the State where the said
Crimes shall have been committed; but when not committed
within any State, the Trial shall be at such Place or Places as the
Congress may by Law have directed.
SECTION. 3. Treason against the United States, shall consist only
in levying War against them, or in adhering to their Enemies,
giving them Aid and Comfort. No Person shall be convicted of
Treason unless on the Testimony of two Witnesses to the same
overt Act, or on Confession in open Court.
The Congress shall have Power to declare the Punishment of
Treason, but no Attainder of Treason shall work Corruption of
Blood, or Forfeiture except during the Life of the Person attainted.
ARTICLE. IV.
SECTION. 1. Full Faith and Credit shall be given in each State to
the public Acts, Records, and judicial Proceedings of every other
State. And the Congress may by general Laws prescribe the
Manner in which such Acts, Records and Proceedings shall be
proved, and the Effect thereof.
SECTION. 2. The Citizens of each State shall be entitled to all
Privileges and Immunities of Citizens in the several States.
A Person charged in any State with Treason, Felony, or other
Crime, who shall flee from Justice, and be found in another State,
shall on Demand of the executive Authority of the State from
which he fled, be delivered up, to be removed to the State having
Jurisdiction of the Crime.
No Person held to Service or Labour in one State, under the
Laws thereof, escaping into another, shall, in Consequence of any
Law or Regulation therein, be discharged from such Service or
Labour, but shall be delivered up on Claim of the Party to whom
such Service or Labour may be due.
SECTION. 3. New States may be admitted by the Congress into
this Union; but no new State shall be formed or erected within the
Jurisdiction of any other State; nor any State be formed by the
Junction of two or more States, or Parts of States, without the

Consent of the Legislatures of the States concerned as well as of
the Congress.
The Congress shall have Power to dispose of and make all
needful Rules and Regulations respecting the Territory or other
Property belonging to the United States; and nothing in this
Constitution shall be so construed as to Prejudice any Claims of
the United States, or of any particular State.
SECTION. 4. The United States shall guarantee to every State in
this Union a Republican Form of Government, and shall protect
each of them against Invasion; and on Application of the Legisla-
ture, or of the Executive (when the Legislature cannot be
convened) against domestic Violence.
ARTICLE. V.
The Congress, whenever two thirds of both Houses shall deem
it necessary, shall propose Amendments to this Constitution, or, on
the Application of the Legislatures of two thirds of the several
States, shall call a Convention for proposing Amendments, which,
in either Case, shall be valid to all Intents and Purposes, as Part of
this Constitution, when ratified by the Legislatures of three fourths
of the several States, or by Conventions in three fourths thereof, as
the one or the other Mode of Ratification may be proposed by the
Congress; Provided that no Amendment which may be made prior
to the Year One thousand eight hundred and eight shall in any
Manner affect the first and fourth Clauses in the Ninth Section of
the first Article; and that no State, without its Consent, shall be
deprived of its equal Suffrage in the Senate.
ARTICLE. VI.
All Debts contracted and Engagements entered into, before the
Adoption of this Constitution, shall be as valid against the United
States under this Constitution, as under the Confederation.
This Constitution, and the Laws of the United States which shall
be made in Pursuance thereof; and all Treaties made, or which
shall be made, under the Authority of the United States, shall be
the supreme Law of the Land; and the Judges in every State shall
be bound thereby, any Thing in the Constitution or Laws of any
State to the Contrary notwithstanding.
The Senators and Representatives before mentioned, and the
Members of the several State Legislatures, and all executive and
judicial Officers, both of the United States and of the several
398 APPENDICES
States, shall be bound by Oath or Affirmation, to support this

Constitution; but no religious Test shall ever be required as a Qual-
ification to any Office or public Trust under the United States.
ARTICLE. VII.
The Ratification of the Conventions of nine States, shall be
sufficient for the Establishment of this Constitution between the
States so ratifying the Same.
DONE in Convention by the Unanimous Consent of the States
present the Seventeenth Day of September in the Year of our
Lord one thousand seven hundred and Eighty seven and of the
Independence of the United States of America the Twelfth I N
WITNESS whereof We have hereunto subscribed our Names,
GO. WASHINGTON—Presidt.
and deputy from Virginia
New Hampshire
JOHN LANGDON
NICHOLAS GILMAN
Massachusetts
NATHANIEL GORHAM
RUFUS KING
Connecticut
WM. SAML. JOHNSON
ROGER SHERMAN
New York
ALEXANDER HAMILTON
New Jersey
WIL: LIVINGSTON
DAVID BREARLEY.
WM. PATERSON.
JONA: DAYTON
Pennsylvania
B FRANKLIN
THOMAS MIFFLIN
ROBT MORRIS
GEO. CLYMER
THOS. FITZSIMONS
JARED INGERSOLL
JAMES WILSON.
GOUV MORRIS
Delaware
GEO: READ
GUNNING BEDFORD jun
JOHN DICKINSON
RICHARD BASSETT
JACO: BROOM
Maryland
JAMES MCHENRY
DAN OF ST THOS. JENIFER
DANL CARROLL.
Virginia
JOHN BLAIR—
JAMES MADISON Jr.
North Carolina
WM BLOUNT
RICHD. DOBBS SPAIGHT.
HU WILLIAMSON
South Carolina
J. RUTLEDGE
CHARLES COTESWORTH PINCKNEY
CHARLES PINCKNEY
PIERCE BUTLER.
Georgia
WILLIAM FEW
ABR BALDWIN
Attest WILLIAM JACKSON Secretary
400 APPENDICES
4. Polemic Poem Against Child Labor by Gillett

4. Sharpe, Circa 1833
Source: “National Economy,” No. 5, “The Factory System—The

Ten Hour Bill,” Fraser's Magazine For Town and Country, Vol.
7, No. 40 (April 1833), p. 392 (cf. p. 378, col. 2), citing witness
Gillett Sharpe in Evidence taken by the Committee of the House
of Commons on the Factory-bill (c1833), p. 210.
Note: The encompassing double quotes from the source are
omitted, and single quotes have been replaced by double quotes.
The italics of only ‘Her’ as shown is per this source.
'Twas on a winter's morning,

The weather wet and wild,
Three hours before the dawning
The father roused his child;
Her daily morsel bringing,
The darksome room he paced,
And cried, “The bell is ringing,
My hapless darling, haste!”
“Father, I'm up, but weary,
I scarce can reach the door,
And long the way and dreary,—
O carry me once more!
To help us we've no mother,
And you have no employ;
They killed by little brother,—
Like him I'll work and die!”
Her wasted form seemed nothing,—
The load was at his heart;
The sufferer he kept soothing
Till at the mill they part.
The overlooker met her,
As to her frame she crept,
And with his thong he beat her,
And cursed her as she wept.
Alas! what hours of horror
Made up her latest day;
A.4 Polemic Poem Against Child Labor, Circa 1833 401
In toil, and pain, and sorrow,

They slowly passed away:
It seemed, as she grew weaker,
The threads the oftener broke,
The rapid wheels ran quicker,
And heavier fell the stroke.
The sun had long descended,
But night brought no repose;
Her day began and ended
As cruel tyrants chose.
At length a little neighbour
Her halfpenny she paid,
To take her last hour's labour,
While by her frame she laid.
At last, the engine ceasing,
The captives homeward rushed;
She thought her strength increasing—
'Twas hope her spirits flushed:
She left, but oft she tarried;
She fell and rose no more,
Till, by her comrades carried,
She reached her father's door.
All night, with tortured feeling,
He watched his speechless child;
While, close beside her kneeling,
She knew him not, nor smiled.
Again the Factory's ringing
Her last perceptions tried;
When, from her straw-bed springing,
“'Tis time!” she shrieked, and died!
That night a chariot passed her,
While on the ground she lay;
The daughters of her master
An evening visit pay;
Their tender hearts were sighing
As negro wrongs were told,
While the white slave was dying
Who gained their father's gold!
402 APPENDICES
5. Constitution of the Confederate States of

5. America (1861)
Source: U.S. Senate Document 234 (58th Cong., 2nd sess.),

volume 1 of 7, ordered to be printed 1 February 1904, serial
volume number 4610 in 4610–4616, Journal of the Congress of
the Confederate States of America, 1861–1865, Vol. 1 (Wash-
ington, D.C.: Government Printing Office, 1904), as accessed
19 February 2009 from the “Century of Lawmaking” Web
portal of the U.S. Library of Congress, pp. 899–909 for the
provisional constitution, not reprinted here, and pp. 909–923 for
the permanent constitution.
Note: The Confederacy by adoption of a provisional constitution
was created on 8 February 1861. Reprinted is the U.S. Govern-
ment's reprint of the permanent constitution, adopted 11 March
1861. The Confederacy's founders had the hindsight of
seventy-four and one half years. It would be ridiculous to
believe they were too dull to have not made constitutional
improvements, as had happened previously with only ten years
of hindsight: the individual-appropriation veto granted the presi-
dent by art. 1, sec. 7, para. 2; the requirement of topical singu-
larity for each law (I suppose to refer to each bill that may be
enacted) by art. 1, sec. 9, para. 20; and the one-and-done presi-
dential term limit of art. 2, sec. 1, para. 1.
The text ‘vancancies’ of article 1, section 2, clause 4 is per
the source's image of page 910. The text ‘impa[i]ring’ of article
1, section 9, clause 4, the text ‘nett produce’ of article 1, section
10, clause 2, and the text ‘of the state’ of article 2, section 3,
clause 1 are per the source. Keep in mind the source for this
appendix's reprint is itself a reprint, one by the U.S. Govern-
ment deriving from the Confederate States Statutes at Large
(Richmond, Virginia: 1864).
CONSTITUTION OF THE CONFEDERATE STATES OF

AMERICA.
We, the people of the Confederate States, each State acting in its
sovereign and independent character, in order to form a permanent
federal government, establish justice, insure domestic tranquility,
A.5 Constitution of the Confederate States of America (1861) 403
and secure the blessings of liberty to ourselves and our posterity—

invoking the favor and guidance of Almighty God—do ordain and
establish this Constitution for the Confederate States of America.
ARTICLE I.
SECTION 1.
All legislative powers herein delegated shall be vested in a
Congress of the Confederate States, which shall consist of a Senate
and a House of Representatives.
SECTION 2.
1. The House of Representatives shall be composed of members
chosen every second year by the people of the several States; and
the electors in each State shall be citizens of the Confederate
States, and have the qualifications requisite for electors of the most
numerous branch of the State Legislature; but no person of foreign
birth, not a citizen of the Confederate States, shall be allowed to
vote for any officer, civil or political, State or Federal.
2. No person shall be a Representative who shall not have
attained the age of twenty-five years, and be a citizen of the
Confederate States, and who shall not, when elected, be an inhabi-
tant of that State in which he shall be chosen.
3. Representatives and direct taxes shall be apportioned among
the several States, which may be included within this Confederacy,
according to their respective numbers, which shall be determined,
by adding to the whole number of free persons, including those
bound to service for a term of years, and excluding Indians not
taxed, three-fifths of all slaves. The actual enumeration shall be
made within three years after the first meeting of the Congress of
the Confederate States, and within every subsequent term of ten
years, in such manner as they shall by law direct. The number of
Representatives shall not exceed one for every fifty thousand, but
each State shall have at least one Representative; and until such
enumeration shall be made, the State of South Carolina shall be
entitled to choose six; the State of Georgia ten; the State of
Alabama nine; the State of Florida two; the State of Mississippi
seven; the State of Louisiana six; and the State of Texas six.
4. When vancancies happen in the representation from any
State, the Executive authority thereof shall issue writs of election
to fill such vacancies.
404 APPENDICES
5. The House of Representatives shall choose their Speaker and

other officers; and shall have the sole power of impeachment;
except that any judicial or other Federal officer, resident and acting
solely within the limits of any State, may be impeached by a vote
of two-thirds of both branches of the Legislature thereof.
SECTION 3.
1. The Senate of the Confederate States shall be composed of
two Senators from each State, chosen for six years by the Legisla-
ture thereof, at the regular session next immediately preceding the
commencement of the term of service; and each Senator shall have
one vote.
2. Immediately after they shall be assembled, in consequence of
the first election, they shall be divided as equally as may be into
three classes. The seats of the Senators of the first class shall be
vacated at the expiration of the second year; of the second class at
the expiration of the fourth year; and of the third class at the expi-
ration of the sixth year; so that one-third may be chosen every
second year; and if vacancies happen by resignation, or otherwise,
during the recess of the Legislature of any State, the Executive
thereof may make temporary appointments until the next meeting
of the Legislature which shall then fill such vacancies.
3. No person shall be a Senator who shall not have attained the
age of thirty years, and be a citizen of the Confederate States; and
who shall not, when elected, be an inhabitant of the State for
which he shall be chosen.
4. The Vice President of the Confederate States shall be Presi-
dent of the Senate, but shall have no vote unless they be equally
divided.
5. The Senate shall choose their other officers; and also a Presi-
dent pro tempore in the absence of the Vice President, or when he
shall exercise the office of President of the Confederate States.
6. The Senate shall have the sole power to try all impeachments.
When sitting for that purpose, they shall be on oath or affirmation.
When the President of the Confederate States is tried, the Chief
Justice shall preside; and no person shall be convicted without the
concurrence of two-thirds of the members present.
7. Judgment in cases of impeachment shall not extend further
than to removal from office, and disqualification to hold and enjoy
any office of honor, trust or profit, under the Confederate States;
but the party convicted shall, nevertheless, be liable and subject to
indictment, trial, judgment and punishment according to law.
SECTION 4.
1. The times, places and manner of holding elections for Sena-
tors and Representatives, shall be prescribed in each State by the
Legislature thereof, subject to the provisions of this Constitution;
but the Congress may, at any time, by law, make or alter such
regulations, except as to the times and places of choosing Senators.
2. The Congress shall assemble at least once in every year; and
such meeting shall be on the first Monday in December, unless
they shall, by law, appoint a different day.
SECTION 5.
1. Each House shall be the judge of the elections, returns, and
qualifications of its own members, and a majority of each shall
constitute a quorum to do business; but a smaller number may
adjourn from day to day, and may be authorized to compel the
attendance of absent members, in such manner and under such
penalties as each House may provide.
2. Each House may determine the rules of its proceedings,
punish its members for disorderly behavior, and with the concur-
rence of two-thirds of the whole number expel a member.
3. Each House shall keep a journal of its proceedings, and from
time to time publish the same, excepting such parts as may in their
judgment require secrecy; and the yeas and nays of the members
of either House, on any question, shall, at the desire of one-fifth of
those present, be entered on the journal.
4. Neither House, during the session of Congress, shall, without
the consent of the other, adjourn for more than three days, nor to
any other place than that in which the two Houses shall be sitting.
SECTION 6.
1. The Senators and Representatives shall receive a compensa-
tion for their services, to be ascertained by law, and paid out of the
treasury of the Confederate States. They shall, in all cases, except
treason, felony, and breach of the peace, be privileged from arrest
during their attendance at the session of their respective Houses,
and in going to and returning from the same; and for any speech or
debate in either House, they shall not be questioned in any other
place.
2. No Senator or Representative shall, during the time for which
he was elected, be appointed to any civil office under the authority
of the Confederate States, which shall have been created, or the
emoluments whereof shall have been increased during such time;
406 APPENDICES
and no person holding any office under the Confederate States

shall be a member of either House during his continuance in
office. But Congress may, by law, grant to the principal officer in
each of the Executive Departments a seat upon the floor of either
House, with the privilege of discussing any measures appertaining
to his department.
SECTION 7.
1. All bills for raising revenue shall originate in the House of
Representatives; but the Senate may propose or concur with
amendments, as on other bills.
2. Every bill which shall have passed both Houses, shall, before
it becomes a law, be presented to the President of the Confederate
States; if he approve, he shall sign it; but if not, he shall return it,
with his objections, to that House in which it shall have originated,
who shall enter the objections at large on their journal, and
proceed to reconsider it. If, after such reconsideration, two-thirds
of that House shall agree to pass the bill, it shall be sent, together
with the objections, to the other House, by which it shall likewise
be reconsidered, and if approved by two-thirds of that House, it
shall become a law. But in all such cases, the votes of both Houses
shall be determined by yeas and nays, and the names of the
persons voting for and against the bill shall be entered on the
journal of each House respectively. If any bill shall not be
returned by the President within ten days (Sundays excepted) after
it shall have been presented to him, the same shall be a law, in like
manner as if he had signed it, unless the Congress, by their
adjournment, prevent its return; in which case it shall not be a law.
The President may approve any appropriation and disapprove any
other appropriation in the same bill. In such case he shall, in
signing the bill, designate the appropriations disapproved; and
shall return a copy of such appropriations, with his objections, to
the House in which the bill shall have originated; and the same
proceeding shall then be had as in case of other bills disapproved
by the President.
3. Every order, resolution or vote, to which the concurrence of
both Houses may be necessary, (except on a question of adjourn-
ment,) shall be presented to the President of the Confederate
States; and before the same shall take effect, shall be approved by
him; or being disapproved by him, shall be re-passed by two-thirds
of both Houses, according to the rules and limitations prescribed in
case of a bill.
SECTION 8.
The Congress shall have power—
1. To lay and collect taxes, duties, imposts, and excises, for
revenue necessary to pay the debts, provide for the common
defence, and carry on the government of the Confederate States;
but no bounties shall be granted from the treasury; nor shall any
duties or taxes on importations from foreign nations be laid to
promote or foster any branch of industry; and all duties, imposts,
and excises shall be uniform throughout the Confederate States:
2. To borrow money on the credit of the Confederate States:
3. To regulate commerce with foreign nations, and among the
several States, and with the Indian tribes; but neither this, nor any
other clause contained in the constitution, shall ever be construed
to delegate the power to Congress to appropriate money for any
internal improvement intended to facilitate commerce; except for
the purpose of furnishing lights, beacons, and buoys, and other
aids to navigation upon the coasts, and the improvement of harbors
and the removing of obstructions in river navigation, in all which
cases, such duties shall be laid on the navigation facilitated
thereby, as may be necessary to pay the costs and expenses
thereof:
4. To establish uniform laws of naturalization, and uniform laws
on the subject of bankruptcies, throughout the Confederate States;
but no law of Congress shall discharge any debt contracted before
the passage of the same:
5. To coin money, regulate the value thereof and of foreign coin,
and fix the standard of weights and measures:
6. To provide for the punishment of counterfeiting the securities
and current coin of the Confederate States:
7. To establish post-offices and post-routes; but the expenses of
the Post-office Department, after the first day of March in the year
of our Lord eighteen hundred and sixty-three, shall be paid out of
its own revenues:
8. To promote the progress of science and useful arts, by
securing for limited times to authors and inventors the exclusive
right to their respective writings and discoveries:
9. To constitute tribunals inferior to the Supreme Court:
10. To define and punish piracies and felonies committed on the
high seas, and offences against the law of nations:
11. To declare war, grant letters of marque and reprisal, and
make rules concerning captures on land and water:
408 APPENDICES
12. To raise and support armies; but no appropriation of money

to that use shall be for a longer term than two years:
13. To provide and maintain a navy:
14. To make rules for the government and regulation of the land
and naval forces:
15. To provide for calling forth the militia to execute the laws of
the Confederate States, suppress insurrections, and repel invasions:
16. To provide for organizing, arming, and disciplining the
militia, and for governing such part of them as may be employed
in the service of the Confederate States; reserving to the States,
respectively, the appointment of the officers, and the authority of
training the militia according to the discipline prescribed by
Congress:
17. To exercise exclusive legislation, in all cases whatsoever,
over such district (not exceeding ten miles square) as may, by
cession of one or more States and the acceptance of Congress,
become the seat of the government of the Confederate States: and
to exercise like authority over all places purchased by the consent
of the legislature of the State in which the same shall be, for the
erection of forts, magazines, arsenals, dockyards, and other
needful buildings: and
18. To make all laws which shall be necessary and proper for
carrying into execution the foregoing powers, and all other powers
vested by this Constitution in the government of the Confederate
States, or in any department or officer thereof.
SECTION 9.
1. The importation of negroes of the African race, from any
foreign country other than the slaveholding States or Territories of
the United States of America, is hereby forbidden; and Congress is
required to pass such laws as shall effectually prevent the same.
2. Congress shall also have power to prohibit the introduction of
slaves from any State not a member of, or Territory not belonging
to, this Confederacy.
3. The privilege of the writ of habeas corpus shall not be
suspended, unless when in cases of rebellion or invasion the public
safety may require it.
4. No bill of attainder, ex post facto law, or law denying or
impa[i]ring the right of property in negro slaves shall be passed.
5. No capitation or other direct tax shall be laid, unless in
proportion to the census or enumeration hereinbefore directed to
be token.
6. No tax or duty shall be laid on articles exported from No tax

on articles exported from any State. any State, except by a vote of
two-thirds of both Houses.
7. No preference shall be given by any regulation of commerce
or revenue to the ports of one State over those of another.
8. No money, shall be drawn, from the treasury, but in conse-
quence of appropriations made by law; and a regular statement and
account of the receipts and expenditures of all public money shall
be published from time to time.
9. Congress shall appropriate no money from the treasury
except by a vote of two-thirds of both Houses, taken by yeas and
nays, unless it be asked and estimated for by some one of the
heads of departments, and submitted to Congress by the President;
or for the purpose of paying its own expenses and contingencies;
or for the payment of claims against the Confederate States, the
justice of which shall have been judicially declared by a tribunal
for the investigation of claims against the government, which it is
hereby made the duty of Congress to establish.
10. All bills appropriating money shall specify in federal
currency the exact amount of each appropriation and the purposes
for which it is made; and Congress shall grant no extra compensa-
tion to any public contractor, officer, agent or servant, after such
contract shall have been made or such service rendered.
11. No title of nobility shall be granted by the Confederate
States; and no person holding any office of profit or trust under
them, shall, without the consent of the Congress, accept of any
present, emolument, office or title of any kind whatever, from any
king, prince, or foreign state.
12. Congress shall make no law respecting an establishment of
religion, or prohibiting the free exercise thereof; or abridging the
freedom of speech, or of the press; or the right of the people peace-
ably to assemble and petition the government for a redress of
grievances.
13. A well-regulated militia being necessary to the security of a
free state, the right of the people to keep and bear arms shall not be
infringed.
14. No soldier shall, in time of peace, be quartered in any house,
without the consent of the owner; nor in time of war, but in a
manner to be prescribed by law.
410 APPENDICES
15. The right of the people to be secure in their persons, houses,

papers, and effects, against unreasonable searches and seizures,
shall not be violated; and no warrants shall issue but upon prob-
able cause, supported by oath or affirmation, and particularly
describing the place to be searched, and the persons or things to be
seized.
16. No person shall be held to answer for a capital or otherwise
infamous crime, unless on a presentment or indictment of a grand
jury, except in cases arising in the land or naval forces, or in the
militia, when in actual service in time of war or public danger; nor
shall any person be subject for the same offence to be twice put in
jeopardy of life or limb; nor be compelled, in any criminal case, to
be a witness against himself; nor be deprived of life, liberty, or
property without due process of law; nor shall private property be
taken for public use, without just compensation.
17. In all criminal prosecutions, the accused shall enjoy the
right to a speedy and public trial, by an impartial jury of the State
and district wherein the crime shall have been committed, which
district shall have been previously ascertained by law, and to be
informed of the nature and cause of the accusation; to be
confronted with the witnesses against him; to have compulsory
process for obtaining witnesses in his favor; and to have the assis-
tance of counsel for his defence.
18. In suits at common law, where the value in controversy shall
exceed twenty dollars, the right of trial by jury shall be preserved;
and no fact so tried by a jury shall be otherwise re-examined in
any court of the Confederacy, than according to the rules of
common law.
19. Excessive bail shall not be required, nor excessive fines
imposed, nor cruel and unusual punishments inflicted.
20. Every law, or resolution having the force of law, shall relate
to but one subject, and that shall be expressed in the title.
SECTION 10.
1. No State shall enter into any treaty, alliance, or confederation;
grant letters of marque and reprisal; coin money; make any thing
but gold and silver coin a tender in payment of debts; pass any bill
of attainder, or ex post facto law, or law impairing the obligation of
contracts; or grant any title of nobility.
2. No State shall, without the consent of the Congress, lay any
imposts or duties on imports or exports, except what may be abso-
lutely necessary for executing its inspection laws; and the nett
produce of all duties and imposts, laid by any State on imports or

exports, shall be for the use of the Treasury of the Confederate
States; and all such laws shall be subject to the revision and
control of Congress.
3. No State shall, without the consent of Congress, lay any duty
on tonnage, except on sea-going vessels, for the improvement of
its rivers and harbors navigated by the said vessels; but such duties
shall not conflict with any treaties of the Confederate States with
foreign nations; and any surplus revenue, thus derived, shall, after
making such improvement, be paid into the common treasury. Nor
shall any State keep troops or ships-of-war in time of peace, enter
into any agreement or compact with another State, or with a
foreign power, or engage in war, unless actually invaded, or in
such imminent danger as will not admit of delay. But when any
river divides or flows through two or more States, they may enter
into compacts with each other to improve the navigation thereof.
ARTICLE II.
SECTION 1.
1. The executive power shall be vested in a President of the
Confederate States of America. He and the Vice President shall
hold their offices for the term of six years; but the President shall
not be re-eligible. The President and Vice President shall be
elected as follows:
2. Each State shall appoint, in such manner as the legislature
thereof may direct, a number of electors equal to the whole
number of Senators and Representatives to which the State may be
entitled in the Congress; but no Senator or Representative or
person holding an office of trust or profit under the Confederate
States, shall be appointed an elector.
3. The electors shall meet in their respective States and vote by
ballot for President and Vice President, one of whom, at least, shall
not be an inhabitant of the same State with themselves; they shall
name in their ballots the person voted for as President, and in
distinct ballots the person voted for as Vice President, and they
shall make distinct lists of all persons voted for as President, and
of all persons voted for as Vice President, and of the number of
votes for each, which lists they shall sign and certify, and transmit,
sealed, to the seat of the government of the Confederate States,
directed to the President of the Senate; the President of the Senate
shall, in the presence of the Senate and House of Representatives,
412 APPENDICES
open all the certificates, and the votes shall then be counted; the
person having the greatest number of votes for President shall be
the President, if such number be a majority of the whole number of
electors appointed; and if no person have such majority, then, from
the persons having the highest numbers, not exceeding three, on
the list of those voted for as President, the House of Representa-
tives shall choose immediately, by ballot, the President. But in
choosing the President, the votes shall be taken by States—the
representation from each State having one vote; a quorum for this
purpose shall consist of a member or members from two-thirds of
the States, and a majority of all the States shall be necessary to a
choice. And if the House of Representatives shall not choose a
President, whenever the right of choice shall devolve upon them,
before the fourth day of March next following, then the Vice-Pres-
ident shall act as President, as in case of the death, or other consti-
tutional disability of the President.
4. The person having the greatest number of votes as Vice Presi-
dent, shall be the Vice President, if such number be a majority of
the whole number of electors appointed; and if no person have a
majority, then, from the two highest numbers on the list, the Senate
shall choose the Vice President; a quorum for the purpose shall
consist of two-thirds of the whole number of Senators, and a
majority of the whole number shall be necessary to a choice.
5. But no person constitutionally ineligible to the office of Pres-
ident shall be eligible to that of Vice President of the Confederate
States.
6. The Congress may determine the time of choosing the elec-
tors, and the day on which they shall give their votes; which day
shall be the same throughout the Confederate States.
7. No person except a natural born citizen of the Confederate
States, or a citizen thereof at the time of the adoption of this
Constitution, or a citizen thereof born in the United States prior to
the 20th of December, 1860, shall be eligible to the office of Presi-
dent; neither shall any person be eligible to that office who shall
not have attained the age of thirty-five years, and been fourteen
years a resident within the limits of the Confederate States, as they
may exist at the time of his election.
8. In case of the removal of the President from office, or of his
death, resignation, or inability to discharge the powers and duties
of the said office, the same shall devolve on the Vice President;
and the Congress may, by law, provide for the case of removal,
death, resignation, or inability, both of the President and Vice Pres-

ident, declaring what officer shall then act as President; and such
officer shall act accordingly, until the disability be removed or a
President shall be elected.
9. The President shall, at stated times, receive for his services a
compensation, which shall neither be increased nor diminished
during the period for which he shall have been elected; and he
shall not receive within that period any other emolument from the
Confederate States, or any of them.
10. Before he enters on the execution of his office, he shall take
the following oath or affirmation:
“I do solemnly swear (or affirm) that I will faithfully execute
the office of President of the Confederate States, and will, to the
best of my ability, preserve, protect, and defend the Constitution
thereof.”
SECTION 2.
1. The President shall be commander-in-chief of the army and
navy of the Confederate States, and of the militia of the several
States, when called into the actual service of the Confederate
States; he may require the opinion, in writing, of the principal
officer in each of the executive departments, upon any subject
relating to the duties of their respective offices; and he shall have
power to grant reprieves and pardons for offences against the
Confederate States, except in cases of impeachment.
2. He shall have power, by and with the advice and consent of
the Senate, to make treaties; provided two-thirds of the Senators
present concur; and he shall nominate, and by and with the advice
and consent of the Senate, shall appoint ambassadors, other public
ministers and consuls, judges of the Supreme Court, and all other
officers of the Confederate States whose appointments are not
herein otherwise provided for, and which shall be established by
law; but the Congress may, by law, vest the appointment of such
inferior officers, as they think proper, in the President alone, in the
courts of law, or in the heads of departments.
3. The principal officer in each of the executive departments,
and all persons connected with the diplomatic service, may be
removed from office at the pleasure of the President. All other
civil officers of the executive departments may be removed at any
time by the President, or other appointing power, when their
services are unnecessary, or for dishonesty, incapacity, ineffi-
414 APPENDICES
ciency, misconduct, or neglect of duty; and when so removed, the

removal shall be reported to the Senate, together with the reasons
therefor.
4. The President shall have power to fill all vacancies that may
happen during the recess of the Senate, by granting commissions
which shall expire at the end of their next session; but no person
rejected by the Senate shall be re-appointed to the same office
during their ensuing recess.
SECTION 3.
1. The President shall, from time to time, give to the Congress
information of the state of the Confederacy, and recommend to
their consideration such measures as he shall judge necessary and
expedient; he may, on extraordinary occasions, convene both
Houses, or either of them; and in case of disagreement between
them, with respect to the time of adjournment, he may adjourn
them to such time as he shall think proper; he shall receive ambas-
sadors and other public ministers; he shall take care that the laws
be faithfully executed, and shall commission all the officers of the
Confederate States.
SECTION 4.
1. The President, Vice President, and all civil officers of the
Confederate States, shall be removed from office on impeachment,
for and conviction of, treason, bribery, or other high crimes and
misdemeanors.
ARTICLE III.
SECTION 1.
1. The judicial power of the Confederate States shall be vested
in one Supreme Court, and in such inferior courts as the Congress
may, from time to time, ordain and establish. The judges, both of
the Supreme and inferior courts, shall hold their offices during
good behavior, and shall, at stated times, receive for their services
a compensation which shall not be diminished during their contin-
uance in office.
SECTION 2.
1. The judicial power shall extend to all cases arising under this
Constitution, the laws of the Confederate States, and treaties made,
or which shall be made, under their authority; to all cases affecting
ambassadors, other public ministers and consuls; to all cases of
admiralty and maritime jurisdiction; to controversies to which the

Confederate States shall be a party; to controversies between two
or more States; between a State and citizens of another State,
where the State is plaintiff; between citizens claiming lands under
grants of different States; and between a State or the citizens
thereof, and foreign states, citizens or subjects; but no State shall
be sued by a citizen or subject of any foreign state.
2. In all cases affecting ambassadors, other public ministers and
consuls, and those in which a State shall be a party, the Supreme
Court shall have original jurisdiction. In all the other cases before
mentioned, the Supreme Court shall have appellate jurisdiction
both as to law and fact, with such exceptions and under such regu-
lations as the Congress shall make.
3. The trial of all crimes, except in cases of impeachment, shall
be by jury, and such trial shall be held in the State where the said
crimes shall have been committed; but when not committed within
any State, the trial shall be at such place or places as the Congress
may by law have directed.
SECTION 3.
1. Treason against the Confederate States shall consist only in
levying war against them, or in adhering to their enemies, giving
them aid and comfort. No person shall be convicted of treason
unless on the testimony of two witnesses to the same overt act, or
on confession in open court.
2. The Congress shall have power to declare the punishment of
treason; but no attainder of treason shall work corruption of blood,
or forfeiture, except during the life of the person attainted.
ARTICLE IV.
SECTION 1.
1. Full faith and credit shall be given in each State to the public
acts, records, and judicial proceedings of every other State. And
the Congress may, by general laws, prescribe the manner in which
such acts, records, and proceedings shall be proved, and the effect
thereof.
416 APPENDICES
SECTION 2.
1. The citizens of each State shall be entitled to all the privileges
and immunities of citizens in the several States; and shall have the
right of transit and sojourn in any State of this Confederacy, with
their slaves and other property; and the right of property in said
slaves shall not be thereby impaired.
2. A person charged in any State with treason, felony, or other
crime against the laws of such State, who shall flee from justice,
and be found in another State, shall, on demand of the executive
authority of the State from which he fled, be delivered up, to be
removed to the State having jurisdiction of the crime.
3. No slave or other person held to service or labor in any State
or Territory of the Confederate States, under the laws thereof,
escaping or lawfully carried into another, shall, in consequence of
any law or regulation therein, be discharged from such service or
labor: but shall be delivered up on claim of the party to whom such
slave belongs, or to whom such service or labor may be due.
SECTION 3.
1. Other States may be admitted into this Confederacy by a vote
of two-thirds of the whole House of Representatives and two-
thirds of the Senate, the Senate voting by States; but no new State
shall be formed or erected within the jurisdiction of any other
State; nor any State be formed by the junction of two or more
States, or parts of States, without the consent of the legislatures of
the States concerned, as well as of the Congress.
2. The Congress shall have power to dispose of and make all
needful rules and regulations concerning the property of the
Confederate States, including the lands thereof.
3. The Confederate States may acquire new territory; and
Congress shall have power to legislate and provide governments
for the inhabitants of all territory belonging to the Confederate
States, lying without the limits of the several States; and may
permit them, at such times, and in such manner as it may by law
provide, to form States to be admitted into the Confederacy. In all
such territory, the institution of negro slavery, as it now exists in
the Confederate States, shall be recognized and protected by
Congress and by the territorial government: and the inhabitants of
the several Confederate States and Territories shall have the right
to take to such territory any slaves lawfully held by them in any of
the States or Territories of the Confederate States.
4. The Confederate States shall guarantee to every State that

now is, or hereafter may become, a member of this Confederacy, a
republican form of government; and shall protect each of them
against invasion; and on application of the legislature, (or of the
executive, when the legislature is not in session,) against domestic
violence.
ARTICLE V.
SECTION 1.
1. Upon the demand of any three States, legally assembled in
their several conventions, the Congress shall summon a conven-
tion of all the States, to take into consideration such amendments
to the Constitution as the said States shall concur in suggesting at
the time when the said demand is made; and should any of the
proposed amendments to the Constitution be agreed on by the said
convention—voting by States—and the same be ratified by the
legislatures of two-thirds of the several States, or by conventions
in two-thirds thereof—as the one or the other mode of ratification
may be proposed by the general convention—they shall thencefor-
ward form a part of this Constitution. But no State shall, without
its consent, be deprived of its equal representation in the Senate.
ARTICLE VI.
1. The Government established by this Constitution is the
successor of the Provisional Government of the Confederate States
of America, and all the laws passed by the latter shall continue in
force until the same shall be repealed or modified; and all the offi-
cers appointed by the same shall remain in office until their
successors are appointed and qualified, or the offices abolished.
2. All debts contracted and engagements entered into before the
adoption of this Constitution shall be as valid against the Confed-
erate States under this Constitution, as under the Provisional
Government.
3. This Constitution, and the laws of the Confederate States
made in pursuance thereof, and all treaties made, or which shall be
made, under the authority of the Confederate States, shall be the
supreme law of the land; and the judges in every State shall be
bound thereby, anything in the Constitution or laws of any State to
the contrary notwithstanding.
4. The Senators and Representatives before mentioned, and the
members of the several State legislatures, and all executive and
judicial officers, both of the Confederate States and of the several
418 APPENDICES
States, shall be bound by oath or affirmation to support this

Constitution; but no religious test shall ever be required as a quali-
fication to any office or public trust under the Confederate States.
5. The enumeration, in the Constitution, of certain rights, shall
not be construed to deny or disparage others retained by the people
of the several States.
6. The powers not delegated to the Confederate States by the
Constitution, nor prohibited by it to the States, are reserved to the
States, respectively, or to the people thereof.
ARTICLE VII.
1. The ratification of the conventions of five States shall be
sufficient for the establishment of this Constitution between the
States so ratifying the same.
2. When five States shall have ratified this Constitution, in the
manner before specified, the Congress under the Provisional
Constitution shall prescribe the time for holding the election of
President and Vice President; and for the meeting of the Electoral
College; and for counting the votes, and inaugurating the Presi-
dent. They shall, also, prescribe the time for holding the first elec-
tion of members of Congress under this Constitution, and the time
for assembling the same. Until the assembling of such Congress,
the Congress under the Provisional Constitution shall continue to
exercise the legislative powers granted them; not extending
beyond the time limited by the Constitution of the Provisional
Government.
Adopted unanimously by the Congress of the Confederate
States of South Carolina, Georgia, Florida, Alabama, Mississippi,
Louisiana and Texas, sitting in Convention at the capitol, in the
city of Montgomery, Alabama, on the Eleventh day of March, in
the year Eighteen Hundred and Sixty-One.
HOWELL COBB,
President of the Congress.
South Carolina.—R. Barnwell Rhett, C. G. Memminger, Wm.
Porcher Miles, James Chesnut, Jr., R. W. Barnwell, William W.
Boyce, Lawrence M. Keitt, T. J. Withers.
Georgia.—Francis S. Bartow, Martin J. Crawford, Benjamin H.
Hill, Thos. R. R. Cobb.
Florida.—Jackson Morton, J. Patton Anderson, Jas. B. Owens.
Alabama.—Richard W. Walker, Robt. H. Smith, Colin J.

McRae, William P. Chilton, Stephen F. Hale, David P. Lewis, Tho.
Fearn, Jno. Gill Shorter, J. L. M. Curry.
Mississippi.—Alex. M. Clayton, James T. Harrison, William S.
Barry, W. S. Wilson, Walker Brooke, W. P. Harris, J. A. P. Camp-
bell.
Louisiana.—Alex. De Clouet, C. M. Conrad, Duncan F. Kenner,
Henry Marshall.
Texas.—John Hemphill, Thomas N. Waul, John H. Reagan,
Williamson S. Oldham, Louis T. Wigfall, John Gregg, William
Beck Ochiltree.
420 APPENDICES
6. Senatorial Debate on the Meaning of Income,

6. 1861
Description: Debate on 29 July 1861 between Senators Daniel

Clark (R-New Hampshire) and James Fowler Simmons (Whig-
Rhode Island) regarding the meaning of income.
Source: Congressional Globe, 37th Congress, 1st session (1861),
New Series No. 20 (30 July 1861), p. 315, col. 2.
Mr. CLARK. I desire to call attention of the Senator from

Rhode Island to what seems to me to be an ambiguity in this first
section. The bill levies a tax upon incomes. I desire to know
whether he means the gross income or the net income? I presume
he means the net income; but the expression is “income.” Now,
take a building largely under mortgage: the mortgagor might
receive rent, and his net income be very small, while his gross
income might be large; the difference might be very considerable.
I desire to know from the Senator which it means? I presume it
means the net income; and, if so, it seems to me it ought to be
more guarded.
Mr. SIMMONS. This bill provides that all the details, the mode
of assessing this tax, what shall be assessed, and what shall be
deducted shall be prescribed by the Secretary of the Treasury. I
noticed in the British statutes containing their first income tax that
it filled fifty-nine pages of that great book of theirs. I could not
write such a bill from now till January. It is all full of details.
Now, to avoid all question about the deterioration of property, I
think we had better not put that word in. A man will say his house
lost five or ten per cent. by the wear of it; that the tenants have
destroyed the wood-work, and all those kind of evasions; but
nobody can mistake the word “income.” It is the net profits of a
man for the year, and the Secretary of the Treasury will provide all
the ways and means to ascertain it. If you undertake to do it in the
bill, you will only make it more confused than it is now; and that is
my objection to the amendment.
Mr. CLARK. It does not seem so, because it would be very
easy to insert in the third line before the word “income” the word
“net.” That is the meaning, and why should it not be done?
A.6 Senatorial Debate on the Meaning of Income, 1861 421
Mr. SIMMONS. That is the very thing that would cause the
trouble. Suppose a person owned a dozen stores on one of the
wharves in Boston, from which he got $10,000 a year rent. I mean
to tax $9,000 of that amount by this bill. If I put in the word “net”
income, he would try to have all the repairs, and so on, deducted,
and would make them amount to as much as the income. That
would be the trouble. When a man repairs his buildings, he will
have less income that year, because he spends it in repairing. I
thought of putting the word “net” in; but I could see so many ways
of evading it that I thought it better to let the Secretary of the Trea-
sury prescribe his rules, and let the bill cover all incomes.
Mr. CLARK. I do not feel quite satisfied with that explanation.
I think it would be quite as well for the Senate to define what shall
be taxed as to leave the Secretary of the Treasury to explain it this
way or that way, and say it shall be so or so. I move to insert the
word “net” before the word “income,” in the third line.
The amendment to the amendment was rejected; there being, on
a division—ayes 10, noes 18.
The PRESIDING OFFICER. The question now is on the first
section of the amendment proposed by the Senator from Rhode
Island.
The amendment was agreed to.
The PRESIDING OFFICER. The next section of the amend-
ment will be read.
422 APPENDICES
7. Senatorial Record of Corrupt Cod-Fishery

7. Subsidies, 1861
Description: Senator Lazarus Whitehead Powell (D-Kentucky)

made a commemorative effort on 29 July 1861 to repeal the
subsidy of cod fishermen. Senators Henry Bowen Anthony (R-
Rhode Island), William Pitt Fessenden (R-Maine), Benjamin
Franklin Wade (R-Ohio), and Henry Wilson (R-Massachusetts)
voted against Powell's amendment.
Source: Congressional Globe, 37th Congress, 1st session (1861),
New Series No. 21 (31 July 1861), p. 321, col. 2 and p. 322, col.
1. The Biographical Directory of the United States Congress at
http://bioguide.congress.gov was consulted on 29 October 2008
to distinguish the Senators Wilson of 1861: Henry Wilson the
Republican from Massachusetts and Robert Wilson the Unionist
from Missouri.
Mr. POWELL. I have an amendment that I wish to offer as an

additional section:
And be it further enacted, That from and after the 6th day of
October, 1861, all acts and parts of acts granting allowances or
bounties on the tonnage of vessels employed in the bank or other
cod fisheries, be, and the same are hereby, repealed.
We are engaged, sir, in raising money by every species of taxa-
tion known to the Constitution of the country; and therefore I think
it eminently proper at this time that we should repeat all laws
giving bounties to any portion of our people. I believe all the laws
granting them are unconstitutional. I hold that you have no more
right to give to Massachusetts or a Rhode Island man a bounty for
his vessels engaged in the cod fisheries, than you have to give a
bounty on the implements of husbandry engaged in the West in
raising corn and potatoes. It is all unjust. I am aware that in the
early history of this species of legislation, particularly touching the
cod fisheries, they said the object was to create and foster a
nursery for seamen. That necessity, if it ever existed, certainly
does not exist now. There has been paid by this Government over
thirteen millions of money for bounties upon the tonnage of
vessels engaged in these fisheries; there is now paid annually
between five and six hundred thousand dollars for that purpose.
A.7 Senatorial Record of Corrupt Cod Fishery Subsidies, 1861 423
Four fifths of that amount, I believe, goes to the people of

Massachusetts and Rhode Island, one or two other States getting a
small amount of it. I do think that whilst we are engaged in the
work of laying taxes on every interest of the people, on their
income, direct taxes on their lands, and imposing excessive duties
on consumption, we should repeal this kind of legislation, and stop
these bounties that have been, in my judgment, so long illegally
paid.
It is not my purpose to make any elaborate argument. I ask for
the yeas and nays on the amendment.
The yeas and nays were ordered and taken.
The call of the roll having been concluded,
The PRESIDING OFFICER. The Chair will suggest that there
is no quorum voting.
Mr. WADE. I move that the Senate adjourn.
Mr. ANTHONY. I hope not. I hope the Sergeant-at-Arms will
be directed to request the attendance of absent members.
Mr. WADE. At the request of the Senator from Massachusetts, I
withdraw my motion.
Mr. WILSON. I ask unanimous consent to allow me——
Mr. FESSENDEN. I object. There is a bill before us. Let us
dispose of it.
xx* * * * *xx
The PRESIDING OFFICER. The amendment is rejected—the
yeas being 15, and the nays 20.
424 APPENDICES
8. Third Convention of the National Labor

8. Union, Philadelphia, 1869
Description: Observations and commentary on the third conven-

tion of the National Labor Union, held in Philadelphia in 1869.
Source: J. E. B., “Labor,” New-York Times, 22 August 1869, p. 1,
cols. 2 and 3. The excerpt is a beginning portion of a paragraph
in the source presented here as two paragraphs. The use of
small caps is reflective of the source.
Now that the National Labor Convention has been brought to a

close, it may not be uninteresting to the readers of the T IMES
briefly to review its proceedings, for the purpose of determining
what are to be the necessary results of the convocation, so far as
they affect the great social interests of the country, and what
bearing they will have (if any) in shaping future legislation, State
and National. To any one who has watched the deliberations of
this congress and artizans and workingmen, one peculiar fact
stands out in bold relief, viz., that the barriers of class and caste
have been broken down, so far as the laboring classes of the
country are concerned, if we are to take the solemnly-avowed
sentiments of this body as indicative of the feelings that exist
among the constituencies therein represented. For the first time in
the history of this nation a Convention has been held in which
working men and working women, white and black, loyalists, and
ex-rebels, have met together upon terms of perfect equality, for the
purpose of taking deliberate action on vital questions affecting
equally the interests of all.
In this respect the Convention was a novelty, and is deserving of
more than a mere passing notice. When colored men, from not
only the Northern but Southern States, are welcomed to take part
in the proceedings of a national assembly, the majority of whose
members are of that political organization which, according to all
past history, may properly be regarded as the least likely ever to
countenance such an affiliation; when a native Mississippian and
ex-Confederate officer, in addressing a Convention, refers to a
colored delegate who has preceded him as “the gentleman from
Georgia;” when a native Alabama delegate, who has now for the
first time crossed Mason and Dixon's line, and who was from
A.8 Third Convention of the National Labor Union, 1869 425
boyhood taught to regard the negro simply as a chattel, sits in

deliberate consultation at the committee-board with another dele-
gate whose ebony face glistens with Afric sheen, and signs the
report of that committee underneath the signature of his colored
co-delegate; when an ardent and avowed Democratic partisan
(from New York at that) declares with a “rich Irish brogue” that he
asks for himself no privilege as a mechanic or a citizen that he is
not willing to concede to every other man, white or black—when,
I say, these things can be seen and heard in a national convention,
called for any purpose, then one may indeed be warranted in
asserting that Time works most curious changes. And all this was
seen and heard in this City of Philadelphia during these August
days in this year of grace 1869.
426 APPENDICES
9. Commentary on Restoring the Gold

9. Standard, 1869
Description: Commentary on the potential resumption of specie

payments, meaning a gold standard.
Source: “The Week,” Nation, Vol. 9, No. 230 (25 November
1869), p. 449.
THE principal topic of the week has been the desirableness and
probability of a return to specie payments. A decision of the
Supreme Court has already shown coin contracts to be legal, and
there is a widespread belief that a solution of the greenback diffi-
culty will be precipitated by another decision of the Court in cases
now before it, declaring the Legal-tender Act unconstitutional, or,
at all events, simply justifiable as a war measure, and making all
debts payable in coin, except where the parties to the contract
clearly contemplated payment in greenbacks. Mr. Spaulding's
“History of the Legal Tender Paper Money” has drawn from
Attorney-General Hoar an expression of opinion that the issue of
the legal tenders ought to have been regarded as a war measure,
and the irredeemable currency laid aside when the war was over,
just as the volunteers were laid aside; but whether he says this as a
lawyer, or as a citizen simply, we do not know. What Mr.
Boutwell's opinion about the matter is we are unable to say. Of
course he wants to get back to specie payments like everybody
else, but seems still to adhere to the idea that the road to it lies
through continued bond-buying, a conversion of the public debt at
lower rates of interest, and we know not what beside; but it must
be admitted that this is a long road.
There are three purely human ways of getting back to specie
payments. One is to collect gold enough in the Treasury to pay off
every greenback now outstanding; but, pending this process, gold
would rise tremendously in price, owing to the withdrawal of so
large an amount from circulation; the prices of other commodities
and duties on imports would rise with it, and the resulting public
clamor would surpass anything seen in these latter days. More-
over—let not this be forgotten—returning to specie payments in
this way, say within a year, would mean neither more nor less that
the discharge by the Government of about $350,000,000 of its debt
9. Commentary on Restoring the Gold Standard, 1869 427
at one stroke. Another is the contraction of the greenback circula-

tion by the destruction of a certain quantity of them by the Govern-
ment as fast as they come into its hands. This might be done
slowly, and would also be tantamount to the payment of a certain
portion of the debt; and it would result at last in raising the
purchasing power of greenbacks very close to the gold level. It
would also, at last, bring the amount of greenbacks outstanding
down to a point at which the Government might offer to redeem
with a comparatively small sum of gold in its possession. This
plan has been already tried, however, and broke down under
clamor. It of course lowered prices in greenbacks—that is, raised
the purchasing power of greenbacks—but it also raised the value
of outstanding debts, and was therefore violently opposed by
debtors; it lowered the (apparent) value of goods of all kinds, and
was therefore opposed by large holders; and it produced a gener-
ally depressing effect on the imagination of all persons with accu-
mulated wealth, by making them seem to themselves poorer than
they thought they were; and it therefore had to be abandoned. The
third plan is the total repudiation of the greenbacks, which would
be a revolting swindle, and cause a frightful convulsion, but would
bring gold back pretty fast. A civilized people will not do without
a currency, and, if it have nothing else, will buy gold and silver for
that purpose, which, let us observe, is exactly what we shall have
to do to get back to specie payments, except that faith in the ability
of the Government to redeem, if called on, would keep a large
amount of greenbacks in circulation, and thus save us the necessity
of purchasing a similar amount of coin.
There is still another method of getting back to specie
payments, which we approach with a certain awe, and which may
be called the Neo-Platonic method, from its resemblance to the
miracles worked by certain thaumaturgists of that school. Its most
prominent apostles have been, we believe, Messrs. Sumner and
Greeley. It consists in returning to specie payments by willing
them, or, as they concisely express it: “The way to resume is to
resume.” Some of the profane have endeavored to hold this up to
ridicule by comparing it to the doctrine that “the way to fly is to
fly.” All we need say about these scoffers is to express the hope
that they may not be cut off before they have become conscious of
the unseemliness of their conduct. Mr. Sumner and Mr. Greeley,
we are sure, forgive them and pity them; but human forgiveness is
hardly enough.
428 APPENDICES
10. Petition Against Importation of Chinese

10. Laborers, 1873
Source: U.S. House Miscellaneous Document 81, ordered to be

printed 3 February 1873 (42nd Cong., 3rd sess.), serial volume
number 1572, a single page.
Note: The salutatory wording ‘honorable the Senate’ is per the
source.
To the honorable the Senate and House of Representatives of the

United States of America in Congress assembled:
The petition of the subscribers, citizens of the county of Beaver,
in the Commonwealth of Pennsylvania, respectfully showeth: That
about one hundred and sixty-five Chinese laborers have been
imported for a cutlery company, located in the borough of Beaver
Falls, in said county, thereby causing the discharge from the works
of the white American mechanics and workmen: that two hundred
more Chinese, direct from China, are said to be engaged and on
their way for the same cutlery and other works of the same
company, to the exclusion from the works of our own people; that
contracts have been made, through one of their own race, for long
periods of servitude on their part, at wages so low as to forbid
competition by American workmen; that their habits are so
debasing as to insure the demoralization and degradation of all
Christian communities brought in contact with them; that their
introduction into the United States, in the manner it is done, shows
a manifest attempt to revive the institution of slavery; and that it is
an act of bad faith toward the work people of Pennsylvania, and of
the United States, inasmuch as that the protection of 35 to 50 per
cent. against the importation of foreign cutler was enacted for the
purpose of protecting the American laborer against cheap foreign
labor.
As a means, therefore, to be saved from such evils, and in
behalf of our own work people, we ask your honorable bodies to
pass a law prohibiting any further importation of Chinese laborers
under contracts made in China; or, that you will authorize the free
importation, from foreign countries, of such articles or manufac-
10. Petition Against the Importation of Chinese Laborers, 1873 429
tures as are, or may be, produced in the United States, by and

through Chinese cheap labor so contracted for. And your peti-
tioners will ever pray, &c.
430 APPENDICES
11. Preamble of the Constitution of the Knights

11. of Labor (1878)
Description: Preamble of the original constitution of the Knights

of Labor, as adopted 3 January 1878 at Reading, Pennsylvania.
Source: T. V. Powderly, Thirty Years of Labor. 1859 to 1889. in
Which the History of the Attempts to Form Organizations of
Workingmen for the Discussion of Political, Social, and
Economic Questions is Traced. The National Labor Union of
1866, The Industrial Brotherhood of 1874, and The Order of the
Knights of Labor of America and the World. The Chief and
Most Important Principles in the Preamble of the Knights of
Labor Discussed and Explained with Views of the Author on
Land, Labor and Transportation. (Columbus, Ohio: Excelsior
Publishing House, 1890), pp. 243–5.
Note: The Knights of Labor seal having not yet been devised, and
the constitution of the by then defunct Industrial Brotherhood
being adopted with modification, the motto of the Industrial
Brotherhood carried over to the top of the Knight's constitution.
No period after ‘XIV’ is per the source. The inscription made in
the Knights' seal, their motto, would be: “That is the most
perfect government in which an injury to one is the concern of
all.”
“When bad men combine, the good must associate, else they will
fall,one by one, an unpitied sacrifice in a contemptible struggle.”
PREAMBLE.
The recent alarming development and aggression of aggregated
wealth, which, unless checked, will invariably lead to the pauper-
ization and hopeless degradation of the toiling masses, render it
imperative, if we desire to enjoy the blessings of life, that a check
should be places upon its power and upon unjust accumulation,
and a system adopted which will secure to the laborer the fruits of
his toil; and as this much-desired object can only be accomplished
by the thorough unification of labor, and the united efforts of those
who obey the divine injunction that “In the sweat of thy brow shalt
thou eat bread,” we have formed the *x*x*x*x* with a view of
securing the organization and direction, by co-operative effort, of
11. Preamble of the Constitution of the Knights of Labor (1878) 431
the power of the industrial classes; and we submit to the world the
objects sought to be accomplished by our organization, calling
upon all who believe in securing “the greatest good to the greatest
number” to aid and assist us:—
I. To bring within the folds of organization every department of
productive industry, making knowledge a stand-point for action,
and industrial and moral worth, not wealth, the true standard of
individual and national greatness.
II. To secure to the toilers a proper share of the wealth that they
create; more of the leisure that rightfully belongs to them; more
societary advantages; more of the benefits, privileges, and emolu-
ments of the world; in a word, all those rights and privileges
necessary to make them capable of enjoying, appreciating,
defending, and perpetuating the blessings of good government.
III. To arrive at the true condition of the producing masses in
their educational, moral, and financial condition, by demanding
from the various governments the establishment of bureaus of
Labor Statistics.
IV. The establishment of co-operative institutions, productive
and distributive.
V. The reserving of the public lands—the heritage of the people
—for the actual settler;—not another acre for railroads or specula-
tors.
VI. The abrogation of all laws that do not bear equally upon
capital and labor, the removal of unjust technicalities, delays, and
discriminations in the administration of justice, and the adopting of
measures providing for the health and safety of those engaged in
mining, manufacturing, or building pursuits.
VII. The enactment of laws to compel chartered corporations to
pay their employes weekly, in full, for labor performed during the
preceding week, in the lawful money of the country.
VIII. The enactment of laws giving mechanics and laborers a
first lien on their work for their full wages.
IX. The abolishment of the contract system on national, State,
and municipal work.
X. The substitution of arbitration for strikes, whenever and
wherever employers and employes are willing to meet on equitable
grounds.
XI. The prohibition of the employment of children in work-
shops, mines and factories before attaining their fourteenth year.
432 APPENDICES
XII. To abolish the system of letting out by contract the labor of

convicts in our prisons and reformatory institutions.
XIII. To secure for both sexes equal pay for equal work.
XIV The reduction of the hours of labor to eight per day, so
that the laborers may have more time for social enjoyment and
intellectual improvement, and be enabled to reap the advantages
conferred by the labor-saving machinery which their brains have
created.
XV. To prevail upon governments to establish a purely national
circulating medium, based upon the faith and resources of the
nation, and issued directly to the people, without the intervention
of any system of banking corporations, which money shall be a
legal tender in payment of all debts, public or private.
12. Testimony on Labor Abuses, 1884 433
12. Testimony on Labor Abuses, 1884
Sources: U.S. House Report 444, ordered to be printed 23

February 1884 (48th Cong., 1st sess.), serial volume number
2254, pp. 8–10. Reprinted in U.S. Senate Report 820, ordered
to be printed 28 June 1884, serial volume number 2179 (48th
Cong., 1st sess.), pp. 7–9.
Note: The passage ‘this misrepresentation and they answered’ on
page 8 of report 444 is given as ‘this misrepresentation, and
they answered’ on page 7 of report 820: the comma is used here.
The extra ‘to’ in ‘1 o'clock a. m. to to 7 p. m.’ on page 9 of
report 444 was left out, the result matching page 8 of report
820. Padded vertical spacing above the line with ‘WILLIAM F.
BARCLAY’ as on page 7 of report 820 was used rather than the
single spacing as on page 8 of report 444. The variation
‘BARCKLEY’ is in both sources. The single quotes around
‘Checkweighman law’ as on page 9 of report 820 was used
rather than double quotes as on page 10 of report 444. Report
444 was used otherwise for the excerpt given.
Mr. T. V. POWDERLY, of Scranton, Pa., master workman of the

Knights of Labor of the United States, representing 500,000 work-
ingmen who are interested in several bills which are before
Congress, testified as follows:
“I am interested in the eight-hour law, the land bill, and bill on
imported labor under contract introduced by Mr. Foran. These
imported men show no disposition to become citizens of this
country, but, on the contrary, seek to obtain a certain sum of
money, which they consider a competence, and with it return to
Italy or Hungary. I have seen eight of these people and one
woman living in a small house, without beds or furniture, sleeping
on the floor, and have been informed by reliable authority that
these nine persons' expenses for one month was only $27. I have
seen them in the Frostburg region of Maryland, where they had
been brought by agents, who engaged them at Castle Garden,
living in a wooden building, sleeping on bunks, this building being
fenced in to prevent them being communicated with by the people
whose places they had taken. The diet of these men was water and
mush, with a small quantity of meat on Sunday. These men are
434 APPENDICES
brought into competition with skilled as well as unskilled labor,

and it is fast becoming as bad as the competition of the Chinese in
the West. A demand is now going up for an amendment of the
Chinese bill in such particulars as it has been shown deficient.”
WILLIAM LEECH, of Malaga, N. J., of the W. G. W. A., said:
“I was at Malaga last year when certain Belgians were brought
to that place. It was our duty to find out from them if the situation
of affairs at Malaga had been made known to them before they
came, or whether it had not been misrepresented to them. When
we attempted to obtain this information the company had thirty-
five of us enjoined by the courts from interfering with them. The
window-glass workers were ordered out of their homes in
midwinter and compelled to move. Last spring we went to work,
the Belgians in one factory and the citizens in another. They have
since left Malaga, the firm having changed managers.”
EMILE BOUILLET, of Zanesville, Ohio, W. G. W. A., said:
“I was hired at Antwerp by an agent of Dean F. Williams, of
Zanesville, Ohio, who came for a set of men (sixty). When I went
to see him I asked him why he came to Europe for men. He
replied ‘that men were scarce and work plenty in the United
States.’ I told him we would expect the same wages paid in the
United States. He said, ‘they would pay the New York tariff.’
When we arrived at Zanesville we discovered that the New York
tariff was 25 per cent. less than the regular price. I complained to
the company of this misrepresentation, and they answered that
‘they did not authorize the payment of more than what they were
then paying.’ At Kent the company did not pay the price agreed
upon. They brought them to Kent on a contract for three years.
The men were not permitted to associate with American work-
ingmen lest they might find out the true state of affairs. Two of
these men were arrested and put in jail for some days for violating
this contract. When we arrived, a friend of one of us was met by a
man whom he knew in Europe. As soon as they commenced to
talk the manager ordered the arrest of the party. When we arrived
at Mansfield, Ohio, a member of the firm came into the car and
inquired if any of us could speak English; I answered that ‘my
father and I could.’ He then warned us not to talk to the men.”
Question by member of committee. What is the difference
between wages paid these foreigners and Americans?
Answer by John Schlicker. Between 28 and 50 per cent.
Question. Did any of these people show a disposition to

become citizens?
Answer. I think not.
WILLIAM F. BARCLAY, representing the miners of the coke
region of Pennsylvania, said:
“We have a great many of these so-called Hungarians. They are
not Hungarians, but Slavonians. They are not brought to our
region on a written contract. There is an agency in Pittsburgh and
in New York for the employment of these people, and to send them
where they are called for. We are against the importation of these
people because their influence is degrading. Firms employ these
people in preference to Americans or other emigrants. They are
easily imposed upon, not 5 per cent. of them being able to read.
They perform this soft-coal mining very well, as it requires little
skill. They have usually about one woman to every ten men.
Their habits are disgusting in the extreme. I saw and counted one
day thirty-five women and children, employed forking coke and
working about the ovens; the children poorly clad, of every age
ranging from five years upward. They do not work on Sunday. To
illustrate how they live: A yard boss, who went to get men to work,
got thirty-seven men out of a house containing four small rooms.
They had no beds, but laid on the floor, heads and tails, I suppose.
“I never knew one of these men to stay in the country. They
spend comparatively nothing, saving their money to return home;
even when sick they go to the poorhouse, until at last the authori-
ties refused to longer entertain them while they had money. They
will eat anything. They hang their meat out in the sun that it may
become soft and tainted. The business men of the region are
opposed to them. They get the same wages as the Americans,
except when they work by the day, then they are paid 33 per cent.
less, which is all they are worth. This importation has reduced the
price of mining, and makes it impossible for the men to do other
than submit to whatever the operators demand or require of them,
regardless of its justness. The condition of the miners and coke-
makers generally is aggravated by the company stores which
abound in this district. I priced potatoes before I left, and could
have bought them of an outside dealer for fifty cents per bushel,
while the price in the company stores is eighty cents per bushel. If
the men do not deal in the store they are discharged.
436 APPENDICES
“I never met one of these Slavonians who could speak English.

We tried to organize the men to enforce the statutes of Pennsyl-
vania, but it was a failure. The companies discharged the men
who were active in the matter. They were black-listed and refused
work throughout the region. I was urged at another time to get up
a strike by one of the operators so that the price of coke might be
raised.
“The Hungarians are paid sixty cents a ton, but they are so igno-
rant that they do not know what a ton is. The mines are wet, and
these people work from 1 o'clock a. m. to to 7 p. m. for a day.
Americans and more skilled workmen could do the same amount
of work in eight hours, but all have to wait on the wagons, the
filling of which is delayed by these men, thereby putting the
skilled and the unskilled on an equality. We dare not lay our
grievance before the coke manufacturers, for whoever does so will
be immediately discharged. We are opposed to strikes, as they are
of no use, and could not succeed with us while these people are in
this state of ignorance. Our citizens and merchants are leaving the
region. The conditions are becoming insufferable. The works run
from two to five days per week, and the wages paid about $1.25
per day, or generally eight tons at thirteen cents per ton. The coke
manufacturers are now trying to form a syndicate, that they may
monopolized the coke business. There are some manufacturers
who will not employ these foreigners, one of whom lives in the
region.”
Mr. BARCKLEY also furnished the committee with the following
written statement:
“We have the following evidence that the importation of
laborers under contract does exist. The captain of the vessel on
which Joseph Welsh, brother of Hon. John Welsh, ex-member of
the Pennsylvania legislature, came to the United States, informed
him that the large number of Slavonians on board the vessel were
imported laborers shipped to America under contract; that the
importers had made a special contract with the steamship company
at a very low rate for their delivery in the United States, and that
their accommodation would be in accordance with the rates, and
that should he (Mr. Walsh) not receive the proper care he should
complain to him (the captain). I have this from Mr. Walsh himself.
We have much other evidence of their being imported by special
agreement to work for certain firms. We have discovered an
agency at work engaged in the business of importing laborers,
agents in Europe gathering the men, an agent in New York

receiving them and forwarding them to destinations. I have in my
possession evidence that a firm having a branch in the city of Pitts-
burgh is engaged in this business. E. Dorner & Co. is the name of
the firm who have received a certain amount per head for such
imported laborers.”
PAUL O. DE ESTERHAZY, Austro-Hungarian consul in New York,
has acknowledged the existence of such an agency, but says he is
unable to do anything in the matter. The class imported by the
coke manufactures are the lowest beings that have ever been in the
State of Pennsylvania, subsisting upon what an American laborer
could not eat—such as mules, hogs, &c., which have been killed
or died with cholera and other diseases. Not one has ever been
known to become an American citizen, but all return to Hungary
within a limited time (about four years), with what money they can
save by living in this miserable condition of filth and squalor.
Women and children work, too, drawing coke and forking coke
into cares, commencing work about 1 or 2 o'clock a. m. and
returning to their shanties as late as 7 p. m., working through all
kinds of weather from two to five days per week. They seldom
sleep in beds, but lie on the floor, with a board or a stick of wood
under their heads, as large a number probably as forty in one house
intended for a miner with an average family, one female serving
about ten men in all relations between male and female, house-
wife and laborer in the coke yards. They are not known to
purchase any of the luxuries which tend to elevate and enlighten
the people, living in filth and wretchedness; but hoard up their
small earnings which they promptly forward to Hungary, thereby
draining our district of the circulating medium. Being low in the
scale of intelligence, they are the willing slaves of the coke manu-
facturers, willing to submit to almost any conditions.
“One of the tricks of the manufacturers is to import these people
for the purpose of evading the laws enacted for the protection of
the laboring classes.
“The ‘Checkweighman law’ is an example. The people being
unable to read and write, they promise them 30 cents per wagon of
one-half tone each, but when they arrive here they are compelled
to sign an agreement, making only about 18 cents per ton for
mining.
438 APPENDICES
“I have known these beings during the time of the strike to have
been dragged from their homes and driven down into the mines by
the managers and coal and iron police. I have also known them to
have been knocked down and kicked under cars for refusing to do
more contract work. In all, they are mere tools by which the
manufacturers gain almost any point they desire, to the degrada-
tion of our native workingmen and the detriment of our business
men, making tramps of the former and bankrupts of the latter.”
13. Labor Plank of Presidential Candidate Wilson, 1912 439
13. Labor Plank of Presidential Candidate

13. Woodrow Wilson, 1912
Description: An excerpt from a book created by editing together

the content of the speeches by Woodrow Wilson during the
1912 presidential campaign.
Source: Woodrow Wilson, The New Freedom: A Call for the
Emancipation of the Generous Energies of a People, ed.
William Bayard Hale (New York: Doubleday, Page & Company,
1913), pp. 44–54.
Note: A horizontal division has been inserted in lieu of the source's
blank line (additional vertical space) between two particular
paragraphs, indicative of a new but related discourse edited into
sequence. The letter ‘e’ with brackets denotes a spelling correc-
tion and is not per the source. The period after energies within
quotes is per the source.
One of the chief benefits I used to derive from being president

of a university was that I had the pleasure of entertaining
thoughtful men from all over the world. I cannot tell you how
much has dropped into my granary by their presence. I had been
casting around in my mind for something by which to draw several
parts of my political thought together when it was my good fortune
to entertain a very interesting Scotsman who had been devoting
himself to the philosophical thought of the seventeenth century.
His talk was so engaging that it was delightful to hear him speak
of anything, and presently there came out of the unexpected region
of his thought the thing I had been waiting for. He called my
attention to the fact that in every generation all sorts of speculation
and thinking tend to fall under the formula of the dominant
thought of the age. For example, after the Newtonian Theory of
the universe had been developed, almost all thinking tended to
express itself in the analogies of the Newtonian Theory, and since
the Darwinian Theory has reigned amongst us, everybody is likely
to express whatever he wishes to expound in terms of development
and accommodation to environment.
Now, it came to me, as this interesting man talked, that the
Constitution of the United States had been made under the
dominion of the Newtonian Theory. You have only the read the
440 APPENDICES
papers of The Federalist to see that fact written on every page.

They speak of the “checks and balances” of the Constitution, and
use to express their idea the simile of the organization of the
universe, and particularly of the solar system,—how by the attrac-
tion of gravitation the various parts are held in their orbits; and
then they proceed to represent Congress, the Judiciary, and the
President as a sort of imitation of the solar system.
They were only following the English Whigs, who gave Great
Britain its modern constitution. Not that those Englishmen
analyzed the matter, or had any theory about it; Englishmen care
little for theories. It was a Frenchman, Montesquieu, who pointed
out to them how faithfully they had copied Newton's description of
the mechanism of the heavens.
The makers of our Federal Constitution read Montesquieu with
true scientific enthusiasm. They were scientists in their way,—the
best way of their age,—those fathers of the nation. Jefferson
wrote of “the laws of Nature,”—and then by way of afterthought,
—“and of Nature's God.” And they constructed a government as
they would have constructed an orrery,—to display the laws of
nature. Politics in their thought was a variety of mechanics. The
Constitution was founded on the law of gravitation. The govern-
ment was to exist and move by virtue of the efficacy of “checks
and balances.”
The trouble with the theory is that government is not a machine,
but a living thing. It falls not under the theory of the universe, but
under the theory of organic life. It is modified by its environment,
necessitated by its tasks, shaped to its functions by the sheer pres-
sure of life. No living thing can have its organs offset against each
other, as checks, and live. On the contrary, its life is dependent
upon their quick co-operation, their ready response to the
commands of instinct or intelligence, their amicable community of
purpose. Government is not a body of blind forces; it is a body of
men, with highly differentiated functions, no doubt, in our modern
day, of specialization, with a common task and purpose. Their co-
operation is indispensable, their warfare fatal. There can be no
successful government without the intimate, instinctive co-ordina-
tion of the organs of life and action. This is not theory, but fact,
and displays its force as fact, whatever theories may be thrown
across its track. Living political constitutions must be Darwinian
in structure and in practice. Society is a living organism and must
obey the laws of life, not of mechanics; it must develop.
All that progressives ask or desire is permission—in an era

when “development,” “evolution,” is the scientific word—to inter-
pret the Constitution according to the Darwinian principle; all they
ask is recognition of the fact that a nation is a living thing and not
a machine.
Some citizens of this country have never got beyond the Decla-
ration of Independence, signed in Philadelphia, July 4th, 1776.
Their bosoms swell against George III, but they have no
consciousness of the war for freedom that is going on to-day.
The Declaration of Independence did not mention the questions
of our day. It is of no consequence to us unless we can translate its
general terms into examples of the present day and substitute them
in some vital way for the examples it gives, so concrete, so inti-
mately involved in the circumstanc[e]s of the day is which it was
conceived and written. It is an eminently practical document,
meant for the use of practical men; not a thesis for philosophers,
but a whip for tyrants; not a theory of government, but a program
of action. Unless we can translate it into the questions of our own
day, we are not worthy of it, we are not the sons of the sires who
acted in response to its challenge.
What form does the contest between tyranny and freedom take
to-day? What is the special form of tyranny we now fight? How
does it endanger the rights of the people, and what do we mean to
do in order to make our contest against it effectual? What are to
be the items of our new declaration and independence?
By tyranny, as we now fight it, we mean control of the law, of
legislation and adjudication, by organizations which do not repre-
sent the people, by means which are private and selfish. We mean,
specifically, the conduct of our affairs and the shaping of our legis-
lation in the interest of special bodies of capital and those who
organize their use. We mean the alliance, for this purpose, of
political machines with selfish business. We mean the exploitation
of the people by legal and political means. We have seen many of
our governments under these influences cease to be representative
governments, cease to be governments representative of the
people, and become governments representative of special inter-
ests, controlled by machines, which in their turn are not controlled
by the people.
442 APPENDICES
Sometimes, when I think of the growth of our economic system,

it seems to me as if, leaving our law just about where it was before
any of the modern inventions or developments took place, we had
simply at haphazard extended the family residence, added an
office here and a workroom there, and a new set of sleeping rooms
there, built up higher on our foundations, and put out little lean-tos
on the side, until we have a structure that has no character what-
ever. Now, the problem is to continue to live in the house and yet
change it.
Well, we are architects in our time, and our architects are also
engineers. We don't have to stop using a railroad terminal because
a new station is being built. We don't have to stop any of the
processes of our lives because we are rearranging the structures in
which we conduct those processes. What we have to undertake is
to systematize the foundations of the house, then to thread all the
old parts of the structure with the steel which will be laced
together in modern fashion, accommodated to all the modern
knowledge of structural strength and elasticity, and then slowly
change the partitions, relay the walls, let in the light through new
apertures, improve the ventilation; until finally, a generation or
two from now, the scaffolding will be taken away, and there will
be the family in a great building whose noble architecture will at
last be disclosed, where men can live as a single community, co-
operative as in a perfected, co-ordinated beehive, not afraid of any
storm of nature, not afraid of any artificial storm, any imitation of
thunder and lightning, knowing that the foundations go down to
the bedrock of principle, and knowing that whenever they please
they can change that plan again and accommodate it as they please
to the altering necessities of their lives.
But there are a great many men who don't like the idea. Some
wit recently said, in view of the fact that most of our American
architects are trained in a certain École in Paris, that all American
architecture in recent years was either bizarre or “Beaux Arts.” I
think that our economic architecture is decidedly bizarre; and I am
afraid that there is a good deal to learn about matters other than
architecture from the same source from which our architects have
learned a great many things. I don't mean the School of Fine Arts
at Paris, but the experience of France; for from the other side of
the water men can now hold up against us the reproach that we
have not adjusted our lives to modern conditions to the same
extent that they have adjusted theirs. I was very much interested
in some of the reasons given by our friends across the Canadian

border for being very shy about the reciprocity arrangements.
They said: “We are not sure whither these arrangements will lead,
and we don't care to associate too closely with the economic
conditions of the United States until those conditions are as
modern as ours.” And when I resented it, and asked for particu-
lars, I had, in regard to many matters, to retire from the debate.
Because I found that they had adjusted their regulations of
economic development to conditions we had not yet found a way
to meet in the United States.
Well, we have started now at all events. The procession is
under way. The stand-patter doesn't know there is a procession.
He is asleep in the back part of his house. He doesn't know that
the road is resounding with the tramp of men going to the front.
And when he wakes up, the country will be empty. He will be
deserted, and he will wonder what has happened. Nothing has
happened. The world has been going on. The world has a habit of
going on. The world has a habit of leaving those behind who
won't go with it. The world has always neglected stand-patters.
And, therefore, the stand-patter does not excite my indignation; he
excites my sympathy. He is going to be so lonely before it is all
over. And we are good fellows, we are good company; why
doesn't he come along? We are not going to do him any harm. We
are going to show him a good time. We are going to climb the
slow road until it reaches some upland where the air is fresher,
where the whole talk of mere politicians is stilled, where men can
look in each other's faces and see that there is nothing to conceal,
that all they have to talk about they are willing to talk about in the
open and talk about with each other; and whence, looking back
over the road, we shall see at last that we have fulfilled our
promise to mankind. We had said to all the world, “America was
created to break every kind of monopoly, and to set men free, upon
a footing of equality, upon a footing of opportunity, to match their
brains and their energies.” and now we have proved that we meant
it.
444 APPENDICES
14. Hitler's Consolidation of Power in the Early

14. 1930s
Description: Synopsis of Hitler's Consolidation of Germany's

Political Power.
Source: International Military Tribunal, Nazi Conspiracy and
Aggression: Opinion and Judgment, ed., Office of United States
Chief of Counsel for Prosecution of Axis Criminality (Wash-
ington: United States Government Printing Office, 1947), pp.
10–12.
Note: All bracket-delimited comments are not from the excerpt of
the source.
From the earliest days of the [National Sozialistische Deutsche

Arbeiter Partei] NSDAP, anti-Semitism had occupied a prominent
place in national socialist thought and propaganda. The Jews, who
were considered to have no right to German citizenship, were held
to have been largely responsible for the troubles with which the
Nation was afflicted following on the war of 1914–18. Further-
more, the antipathy to the Jews was intensified by the insistence
which was laid upon the superiority of the Germanic race and
blood. The second chapter of book 1 of “Mein Kampf” is dedi-
cated to what may be called the “Master Race” theory, the doctrine
of Aryan superiority over all other races, and the right of Germans
in virtue of this superiority over all other races, and the right of
Germans in virtue of this superiority to dominate and use other
peoples for their own ends. With the coming of the Nazis into
power in 1933, persecution of the Jews became official state
policy. On the 1st April, 1933, a boycott of Jewish enterprises was
approved by the Nazi Reich Cabinet, and during the following
years a series of anti-Semitic laws were passed, restricting the
activities of Jews in the Civil Service, in the legal profession, in
journalism, and in the armed forces. In September 1935, the so-
called Nurnberg Laws were passed, the most important effect of
which was to deprive Jews of German citizenship. In this way the
influence of Jewish elements on the affairs of Germany was extin-
guished, and one more potential source of opposition to Nazi
policy was rendered powerless.
14. Hitler's Consolidation of Power in the Early 1930s 445
In any consideration of the crushing of opposition, the massacre

of the 30th June 1934 must not be forgotten. It has become known
as the “Roehm Purge” or “the blood bath,” and revealed the
methods which Hitler and his immediate associates, including the
defendant [Hermann Wilhelm] Goering, were ready to employ to
strike down all opposition and consolidate their power. On that
day [Ernst] Roehm, the Chief of Staff of the [Sturmabteilung] SA
since 1931, was murdered by Hitler's orders, and the “Old Guard”
of the SA was massacred without trial and without warning. The
opportunity was taken to murder a large number of people who at
one time or another had opposed Hitler.
The ostensible ground for the murder of Roehm was that he was
plotting to overthrow Hitler, and the defendant Goering gave
evidence that knowledge of such a plot had come to his ears.
Whether this was so or not it is not necessary to determine.
On July 3rd the Cabinet approved Hitler's action and described
it as “legitimate self-defense by the State.”
Shortly afterwards Hindenburg died, and Hitler became both
Reich President and Chancellor. At the Nazi-dominated Plebiscite,
which followed, 38 million Germans expressed their approval, and
with the Reichswehr [German armed forces ostensibly in compli-
ance with the Treaty of Versailles] taking the oath of allegiance to
the Fuehrer, full power was now in Hitler's hands.
Germany had accepted the Dictatorship with all its methods of
terror and its cynical and open denial of the rule of law.
Apart from the policy of crushing the potential opponents of
their regime, the Nazi Government took active steps to increase its
power over the German population. In the field of education
everything was done to ensure that the youth of Germany was
brought up in the atmosphere of National Socialism and accepted
National Socialist teachings. As early as the 7th April 1933 the
law reorganizing the Civil Service had made it possible for the
Nazi Government to remove all “subversive and unreliable
teachers”; and this was followed by numerous other measures to
make sure that the schools were staffed by teachers who could be
trusted to teach their pupils the full meaning of the National
Socialist creed. Apart from the influence of National Socialist
teaching in the schools, the Hitler Youth Organization was also
relied upon by the Nazi Leaders for obtaining fanatical support
from the younger generation. The defendant [Baldur] von
Schirach, who had been Reich Youth Leader of the NSDAP since
446 APPENDICES
1931, was appointed Youth Leader of the German Reich in June

1933. Soon all the youth organizations had been either dissolved
or absorbed by the Hitler Youth, with the exception of the Catholic
Youth. The Hitler Youth was organized on strict military lines, and
as early as 1933 the Wehrmacht [German armed forces in open
defiance of Allied restrictions] was cooperating in providing
premilitary training for the Reich Youth.
The Nazi Government endeavored to unite the Nation in support
of their policies through the extensive use of propaganda. A
number of agencies were set up whose duty was to control and
influence the press, radio, films, publishing firms, etc., in
Germany, and to supervise entertainment and cultural and artistic
activities. All these agencies came under [Joseph] Geobbels'
Ministry of the People's Enlightenment and Propaganda, which
together with a corresponding organization in the NSDAP and the
Reich Chamber of Culture, was ultimately responsible for exer-
cising this supervision. The defendant [Alfred] Rosenberg played
a leading part in disseminating the National Socialist doctrines on
behalf of the Party, and the defendant [Hans] Fritzsche, in conjunc-
tion with Goebbels, performed the same task for the State.
The greatest emphasis was laid on the supreme mission of the
German people to lead and dominate by virtue of their Nordic
blood and racial purity; and the ground was thus being prepared
for the acceptance of the idea of German world supremacy.
Through the effective control of the radio and the press, the
German people, during the years which followed 1933, were
subjected to the most intensive propaganda in furtherance of the
regime. Hostile criticism, indeed criticism of any kind, was
forbidden, and the severest penalties were imposed on those who
indulged in it.
Independent judgment, based on freedom of thought, was
rendered quite impossible.
15. Shays' Rebellion Week Designated, 1986 447
15. Shays' Rebellion Week Designated, 1986
Description: Congress with President Reagan designate the

week beginning 19 January 1987 to be ‘Shays' Rebellion Week’
and the day of 25 January 1987 to be ‘Shays' Rebellion Day’.
Source: Public Law 99–629, 100 Stat. 3513.
Joint Resolution
To designate the week beginning January 19, 1987, as “Shays' Rebellion Week” and
Sunday, January 25, 1987, as “Shays' Rebellion Day”.
Whereas January 25, 1987, marks the bicentennial of the final
uprising in western Massachusetts of Daniel Shays and his men,
during a period of unrest in the years following the Revolu-
tionary War;
Whereas the landowners of western Massachusetts felt they were
unduly burdened because money was scarce, taxes were high,
punishments for debts were severe, and the government was
unresponsive;
Whereas Shays led the dissatisfied landowners in a series of
attacks to stop debt procedures in local courts;
Whereas on January 25, 1878, a major confrontation occurred in
Springfield when the militia wounded, killed, and caught
several of Shays' rebels as they stormed the arsenal;
Whereas the uprising of Shays' Rebellion exposed the problems in
the existing form of government to the people of America and
prompted a meeting of delegates in Philadelphia to correct the
weaknesses of the Articles of Confederation; and
Whereas Shays' Rebellion was instrumental in bringing about the
writing of the Constitution of the United States: Now, therefore,
be it
Resolved by the Senate and House of Representatives of the
United States of America in Congress assembled, That the week
beginning January 19, 1987, is designated as “Shays' Rebellion
Week” and Sunday, January 25, 1987, is designated as “Shays'
Rebellion Day”. The President is requested to issue a proclama-
tion calling upon the people of the United States to observe such
week and day with appropriate ceremonies and activities.
Approved November 7, 1986.
448 APPENDICES
16. U.S. Senate Passage of McCain-Kennedy

16. Amnesty Bill, 2006
Description: U.S. Senate passage of bill S. 2611 on 25 May 2006.

The bill, supported by President Bush, did not became law
because the House failed to give approval. Senators are
grouped by vote and 2006 campaign status.
Source: Roll call of vote number 157 of Senate, 25 May 2008,
5:39 pm, during the 2nd session of the 109th Congress, linked
via the Thomas portal and taken from the U.S. Senate website,
accessed circa 2006 and 29 October 2008. Full names are from
the Biographical Directory of the United States Congress at
http://bioguide.congress.gov, as accessed 29 October 2008,
except based on other sources a period was placed after the H of
Herbert H. Kohl. Obviously, the names of persons in the
Congressional directory are not full, legal names. The
campaign statuses of senators were determined by searching the
Web circa 2006.
Note: ‘D’ designates Democrat, ‘R’ designates Republican, ‘I’
designates Independent, and the standard two-letter designations
signify the States. An absolute majority of votes cast was
required for passage (cf. Constitution of the United States,
article 1, section 3, clause 4).
Summary
YEAs: 62 (23 Republicans, 38 Democrats, 1 Independent)
NAYs: 36 (32 Republicans, 4 Democrats)
UNCASTs: 2 (2 Democrats)
Republicans: 55
Democrats: 44
Independents: 1
YEAs—Running—17 (4 Republicans, 13 Democrats)
Daniel Kahikina Akaka (D-HI)
Jesse “Jeff” Francis Bingaman, Jr. (D-NM)
Maria E. Cantwell (D-WA)
Thomas Richard Carper (D-DE)
Lincoln Davenport Chafee (R-RI)
Hillary Rodham Clinton (D-NY)
16. U.S. Senate Passage of McCain-Kennedy Bill, 2006 449
Kent Conrad (D-ND)

Mark Dayton (D-MN)
Michael DeWine (R-OH)
Dianne Feinstein (D-CA)
Edward “Ted” Moore Kennedy (D-MA)
Herbert H. Kohl (D-WI)
Joseph I. Lieberman (D-CT)
Richard Green Lugar (R-IN)
Robert Menendez (D-NJ)
Clarence William “Bill” Nelson (D-FL)
Olympia Jean Snowe (R-ME)
YEAs—NOT Running—45
(19 Republicans, 25 Democrats, 1 Independent)
Max Sieben Baucus (D-MT)
Evan Bayh (D-IN)
Robert Bennett (R-UT)
Joseph Robinette Biden, Jr. (D-DE)
Barbara Boxer (D-CA)
Sam Dale Brownback (R-KS)
Norm Coleman (R-MN)
Susan Margaret Collins (R-ME)
Larry Edwin Craig (R-ID)
Christopher John Dodd (D-CT)
Pete Vichi Domenici (R-NM)
Richard Joseph Durbin (D-IL)
Russell D. Feingold (D-WI)
William H. Frist (R-TN, retiring in '07)
Lindsey O. Graham (R-SC)
Judd Alan Gregg (R-NH)
Charles “Chuck” Timothy Hagel (R-NE)
Thomas “Tom” Richard Harkin (D-IA)
Daniel Ken Inouye (D-HI)
James Merrill Jeffords (I-VT, retiring in '07)
Timothy “Tim” Peter Johnson (D-SD)
John Forbes Kerry (D-MA)
Mary L. Landrieu (D-LA)
Frank Raleigh Lautenberg (D-NJ)
Patrick Joseph Leahy (D-VT)
Carl Levin (D-MI)
Blanche Lambert Lincoln (D-AR)
Melquiades “Mel” R. Martinez (R-FL)
450 APPENDICES
John Sidney McCain, III (R-AZ)

Addison Mitchell “Mitch” McConnell (R-KY)
Barbara Ann Mikulski (D-MD)
Lisa Murkowski (R-AK)
Patty Murray (D-WA)
Barack Obama (D-IL)
Mark Pryor (D-AR)
John F. “Jack” Reed (D-RI)
Harry Reid (D-NV)
Paul Spyros Sarbanes (D-MD, retiring in '07)
Charles Ellis Schumer (D-NY)
Gordon Harold Smith (R-OR)
Arlen Specter (R-PA)
Theodore “Ted” F. Stevens (R-AK)
George Victor Voinovich (R-OH)
John William Warner (R-VA)
Ronald Lee Wyden (D-OR)
NAYs—Running—13 (10 Republicans, 3 Democrats)
George Allen (R-VA)
Conrad Burns (R-MT)
Robert Carlyle Byrd (D-WV)
John Eric Ensign (R-NV)
Orrin Grant Hatch (R-UT)
Kathyrn “Kay” Ann Bailey Hutchison (R-TX)
Jon Llewellyn Kyl (R-AZ)
Trent Chester Lott (R-MS)
Benjamin “Ben” Earl Nelson (D-NE)
Richard “Rick” John Santorum (R-PA)
Deborah Ann Stabenow (D-MI)
James Matthes Talent (R-MO)
Craig Lyle Thomas (R-WY)
NAYs—NOT Running—23 (22 Republicans, 1 Democrats)
Lamar Alexander (R-TN)
Wayne A. Allard (R-CO)
Christopher Samuel “Kit” Bond (R-MO)
James Paul David Bunning (R-KY)
Richard M. Burr (R-NC)
Saxby Chambliss (R-GA)
Thomas Allen Coburn (R-OK)
William Thad Cochran (R-MS)
16. U.S. Senate Passage of McCain-Kennedy Bill, 2006 451
John Cornyn (R-TX)

Michael Dean Crapo (R-ID)
James W. DeMint (R-SC)
Elizabeth Hanford Dole (R-NC)
Byron Leslie Dorgan (D-ND)
Michael B. Enzi (R-WY)
Charles Ernest Grassley (R-IA)
James Mountain Inhofe (R-OK)
Johnny Isakson (R-GA)
Charles Patrick “Pat” Roberts (R-KS)
Jefferson “Jeff” Beauregard Sessions, III (R-AL)
Richard C. Shelby (R-AL)
John E. Sununu (R-NH)
John Thune (R-SD)
David Vitter (R-LA)
UNCASTs—NOT Running—2 (2 Democrats)
John “Jay” Davison Rockefeller IV (D-WV)
Kenneth Lee Salazar (D-CO)
452 APPENDICES
17. Complaint Against City of Hazleton, 2006
Description: The final “Prayer for Relief” section of the complaint

filed 15 August 2006 against Hazleton, Pennsylvania's for their
anti-illegal ordinance enacted 13 July 2006, the first of a
sequence of such ordinances. The complaint was the opening
salvo of a district court case.
Source: Complaint filed 15 August 2006 on behalf of Pedro
Lozano et al. against City of Hazleton, from case number 3:06-
cv-01586 of the U.S. District Court for the Middle District of
Pennsylvania, as accessed circa 3 August 2007 from the court's
PACER website via the court's general website at
http://coop.pamd.uscourts.gov, pp. 39–42.
Note: Telephone and fax numbers for the plaintiffs' lawyers have
been omitted.
PRAYER FOR RELIEF

WHEREFORE, in light of the foregoing, Plaintiffs respectfully
request the following:
(a) a declaratory judgment pursuant to 28 U.S.C. §§ 2201 and
2202 and 42 U.S.C. §§ 1981 and 1983 declaring the Ordinance
void because it violates the Supremacy Clause, the First
Amendment, the Due Process and Equal Protection Clauses of
Fourteenth Amendment of the Constitution of the United
States, exceeds Hazleton's police powers, and violates the
fundamental right to contract conferred by 42 U.S.C. § 1981
and the Fair Housing Act, 42 U.S.C. §§ 3601 et seq.;
(b) an injunction pursuant to Fed. R. Civ. P. 65 prohibiting
Hazleton and its agents from implementing or enforcing the
Ordinance;
(c) damages against Hazleton for violating the Plaintiffs' rights
under the United States and Pennsylvania Constitutions, 42
U.S.C. § 1981 and the Fair Housing Act;
(d) an order awarding Plaintiffs the costs incurred in this litigation,
including attorneys' fees pursuant to 42 U.S.C. § 1988; and
(e) such other relief the Court deems just and proper.
Respectfully submitted,
By: /s/ Thomas G. Wilkinson, Jr.
17. Complaint Against City of Hazleton, 2006 453
Thomas G. Wilkinson, Jr., Esquire

Linda S. Kaiser, Esquire
Doreen Yatko Trujillo, Esquire
William J. Taylor, Esquire
Elena Park, Esquire
Douglas W. Frankenthaler, Esquire
Ilan Rosenberg, Esquire
COZEN O'CONNOR
1900 Market Street
Philadelphia, PA 19103
Lillian Llambelis, Esquire
Foster Maer, Esquire
Jackson Chin, Esquire
PUERTO RICAN LEGAL
DEFENSE FUND
99 Hudson St. 14 Floor
New York, NY 10013-2815
George R. Barron, Esquire
88 North Franklin Street
Wilkes-Barre, Pennsylvania 18701
David Vaida, Esquire
137 North 5th Street
Allentown, PA 18102
/s/ Barry H. Dyller
Barry H. Dyller, Esquire
DYLLER LAW FIRM
Gettysburg House
88 North Franklin Street
Wilkes-Barre, PA 18701
Lee Gelernt, Esquire
Omar C. Jadwat, Esquire
AMERICAN CIVIL LIBERTIES
UNION FOUNDATION
Immigrants' Rights Project
125 Broad St., 18th Fl.
New York, NY 10004
Lucas Guttentag, Esquire
Jennifer C. Chang, Esquire
454 APPENDICES
AMERICAN CIVIL LIBERTIES UNION

FOUNDATION
Immigrants' Rights Project
39 Drumm Street
San Francisco, CA 94111
Witold J. Walczak, Esquire
UNION OF PENNSYLVANIA
313 Atwood Street
Pittsburgh, PA 15213
Paula Knudsen, Esquire
105 N. Front St., Suite 225
Harrisburg, PA 17101
Mary Catherine Roper, Esquire
P.O. Box 40008
Counsel for Plaintiffs
Shamaine Daniels, Esquire
Laurence E. Norton, II, Esquire
Peter Zurflieh, Esquire
COMMUNITY JUSTICE PROJECT
118 Locust Street
Harrisburg, PA 17101
Counsel for Plaintiffs Jane Doe 2, Brenda
Mieles and Casa Dominicana of Hazleton,
Inc.
Peter D. Winebrake, Esquire
TRUJILLO RODRIGUES & RICHARDS,
1717 Arch Street, Suite 3838
Counsel for Plaintiff Pennsylvania
Statewide Latino Coalition
18. Hazleton's Illegal Immigration Relief Act Ordinance (2006) 455
18. Hazleton's Illegal Immigration Relief Act

18. Ordinance (2006)
Description: Sections 1 and 2 of Hazleton Ordinance 2006-18,

Illegal Immigration Relief Act Ordinance, 21 September 2006.
Hazleton enacted its first anti-illegal ordinance on 13 July 2006.
Source: Downloaded as PDF file from http://www.smalltown
defenders.com/public/node/6 on 28 July 2007.
SECTION 1. TITLE
This chapter shall be known and may be cited as the “City of
Hazleton Illegal Immigration Relief Act Ordinance.”
SECTION 2. FINDINGS AND DECLARATION OF PURPOSE
The People of the City of Hazleton find and declare:
A. That state and federal law require that certain conditions
be met before a person may be authorized to work or
reside in this country.
B. That unlawful workers and illegal aliens, as defined by this
ordinance and state and federal law, do not normally meet
such conditions as a matter of law when present in the City
of Hazleton.
C. That unlawful employment, the harboring of illegal aliens
in dwelling units in the City of Hazleton, and crime
committed by illegal aliens harm the health, safety and
welfare of authorized US workers and legal residents in the
City of Hazleton. Illegal immigration leads to higher
crime rates, subjects our hospitals to fiscal hardship and
legal residents to substandard quality of care, contributes
to other burdens on public services, increasing their cost
and diminishing their availability to legal residents, and
diminishes our overall quality of life.
D. That the City of Hazleton is authorized to abate public
nuisances and empowered and mandated by the people of
Hazleton to abate the nuisance of illegal immigration by
456 APPENDICES
diligently prohibiting the acts and policies that facilitate

illegal immigration in a manner consistent with federal
law and the objectives of Congress.
E. That United States Code Title 8, subsection 1324(a)(1)(A)
prohibits the harboring of illegal aliens. The provision of
housing to illegal aliens is a fundamental component of
harboring.
F. This ordinance seeks to secure to those lawfully present in
the United States and this City, whether or not they are
citizens of the United States, the right to live in peace free
of the threat crime, to enjoy the public services provided by
this city without being burdened by the cost of providing
goods, support and services to aliens unlawfully present in
the United States, and to be free of the debilitating effects
on their economic and social well being imposed by the
influx of illegal aliens to the fullest extent that these goals
can be achieved consistent with the Constitution and Laws
of the United States and the Commonwealth of Pennsylva-
nia.
G. The City shall not construe this ordinance to prohibit the
rendering of emergency medical care, emergency assis-
tance, or legal assistance to any person.
19. Ruling on Hazleton's Anti-Illegal Ordinances, 2007 457
19. Ruling on Hazleton's Anti-Illegal

19. Ordinances, 2007
Source: Judge James M. Munley, Decision and Verdict of case

number 3:06-cv-01586, filed 26 July 2007, U.S. District Court
for the Middle District of Pennsylvania, accessed 3 August 2007
at http://coop.pamd.uscourts.gov/06v1586.pdf via the PACER
system at http://coop.pamd.uscourts.gov, pp. 43–5, 104–7, 186–
9, and 190–2 (four excerpts).
Note: Bear in mind the relevance of the constitutionality of State
secession to this ruling. Footnote marks (and footnotes) are
removed. The plaintiffs listed on the complaint (that initiated
the case) are not exactly the same as the plaintiffs listed on the
decision and verdict. The parties listed on the decision and
verdict documents are:
Pedro Lozano,
Humberto Hernandez,
Rosa Lechuga,
Jose Luis Lechuga,
John Doe 1,
John Doe 3,
John Doe 7,
Jane Doe 5,
Casa Dominica of Hazleton, Inc.,
Hazleton Hispanic Business Association, and
Pennsylvania Statewide Latino Coalition,
Plaintiffs
v.
City of Hazleton,
Defendant
This argument appears to be a species of argument often heard

in recent discussions of the national immigration issue: because
illegal aliens broke the law to enter this country, they should not
have any legal recourse when rights due them under the federal
constitution or federal law are violated. We cannot say clearly
enough that persons who enter this country without legal autho-
rization are not stripped immediately of all their rights because of
this single illegal act. The Fourteenth Amendment to the United
458 APPENDICES
States Constitution provides that no State may “deprive any person

of life, liberty or property, without due process of law; nor deny
any person within its jurisdiction the equal protection of the laws.”
U.S. CONST. amend. XIV § 1. (emphasis added). The United
States Supreme Court has consistently interpreted this provision to
apply to all people present in the United States, whether they were
born here, immigrated here through legal means, or violated
federal law to enter the country. See Plyler, 457 U.S. at 210
(holding that “[w]hatever his status under the immigration laws, an
alien is surely a ‘person’ in any ordinary sense of that term. Aliens,
even aliens whose presence in this country is unlawful, have long
been recognized as ‘persons’ guaranteed due process of law by the
Fifth and Fourteenth Amendments.”). The anonymous plaintiffs
are persons, and they seek to vindicate rights guaranteed them
under the federal constitution. They have standing to sue in this
court.
Bearing in mind the interests of the local government versus the

federal government in the areas of immigration, we proceed to our
analysis of whether the federal government has pervasively regu-
lated this field.
bb. Pervasiveness of regulations
The second factor we consider is the pervasiveness of the
federal regulations. Schneidewind, 485 U.S. at 300. Congress has
occupied the field of employment of unauthorized aliens with
IRCA. The Supreme Court has noted that IRCA is “a comprehen-
sive scheme prohibiting the employment of illegal aliens in the
United States.” Hoffman Plastic Compounds, Inc. v. National
Labor Relations Board, 535 U.S. 1275, 1282 (2002) (emphasis
added). The Supreme Court has explained IRCA as follows:
As we have previously noted, IRCA “forcefully” made
combating the employment of illegal aliens central to “[t]he
policy of immigration law.” INS v. National Center for Immi-
grants' Rights, Inc., 502 U.S. 183, 194, and n.8, 112 S.Ct. 551,
116 L.Ed.2d 546 (1991). It did so by establishing an extensive
“employment verification system,” § 1324a(a)(1), designed to
deny employment to aliens who (a) are not lawfully present in
the United States, or (b) are not lawfully authorized to work in
the United States, § 1324a(h)(3). This verification system is
critical to the IRCA regime. To enforce it, IRCA mandates that
employers verify the identity and eligibility of all new hires by

examining specified documents before they begin work. §
1324a(b). If an alien applicant is unable to present the required
documentation, the unauthorized alien cannot be hired. §
1324a(a)(1).
Hoffman Plastic Compounds, Inc. v. N.L.R.B., 535 U.S. 137, 147-
48 (2002)(footnote omitted).
IRCA occupies the field to the exclusion of State or local laws
regarding employers hiring, employing, recruiting or referring for
a fee for employment unauthorized aliens. Congress has indicated
that one of the central features of federal immigration policy is
controlling the employment of unauthorized workers. Id. IRCA
provides for the prohibition of employing unauthorized workers
and explains the manner in which an employer may be found
liable for violating the statute and also how the employer can seek
review of adverse decisions. See generally, 8 U.S.C. § 1324a(e).
It provides for various penalties. 8 U.S.C. § 1324a(e)(5)
(providing for civil fines); 8 U.S.C. § 1324a(f)(providing a crim-
inal penalty); 8 U.S.C. § 1324c (providing penalties for document
fraud). IRCA also contains a section that prohibits unfair immi-
gration-related employment practices. 8 U.S.C. § 1324b.
Thus, IRCA is a comprehensive scheme. It leaves no room for
state regulation. As explained more fully below, where we discuss
conflict pre-emption, any additions added by local governments
would be either in conflict with the law or a duplication of its
terms—the very definition of field pre-emption.
Accordingly, we conclude that the Ordinance as it applies to
employers is field pre-empted. Immigration is a national issue.
The United States Congress has provided complete and thorough
regulations with regard to the employment of unauthorized aliens
including anti-immigration discrimination provisions. Allowing
States or local governments to legislate with regard to the employ-
ment of unauthorized aliens would interfere with Congressional
objectives.
460 APPENDICES
Conclusion
Federal law prohibits Hazleton from enforcing any of the provi-
sions of its ordinances. Thus, we will issue a permanent injunction
enjoining their enforcement. With respect to each particular count
we conclude as follows:
We find for the plaintiffs on Count I of the complaint. Federal
law pre-empts IIRA and RO. The ordinances disrupt a well-estab-
lished federal scheme for regulating the presence and employment
of immigrants in the United States. They violate the Supremacy
Clause of the United States Constitution and are unconstitutional.
We find for the plaintiffs on Count II of the complaint as well.
The Hazleton ordinances violate the procedural due process
protections of the Fourteenth Amendment to the United States
Constitution. They penalize landlords, tenants, employers and
employees without providing them the procedural protections
required by federal law, including notice and an opportunity to be
heard. Our analysis applies to illegal aliens as well as to legal resi-
dents and citizens. The United States Constitution provides due
process protections to all persons.
We will dismiss Counts III and IV of the complaint regarding
Equal Protection and the Fair Housing Act, 42 U.S.C. §§ 3601, et
seq., respectively. Neither IIRA nor RO facially discriminate on
the basis of race, ethnicity or national origin.
On Count V, which alleges a violation of plaintiffs' right to
contract under 42 U.S.C. § 1981, we find for the plaintiffs. Just as
with the Fourteenth Amendment analysis, illegal aliens are
“persons” under that statute, and the City may not burden their
right to contract more than that of other persons.
Plaintiffs prevail in part on Count VI, which challenges the
power of the City under Pennsylvania law to enact the employ-
ment-related provisions of IIRA. The defendant acted ultra vires
in enacting the portion of IIRA which creates a private cause of
action for a dismissed employee. The City, however, has the
power to license businesses in ways that do not violate Pennsyl-
vania law. Thus, we will dismiss the remaining portion of the
count.
We will dismiss Count VII, which challenges the power of the
City to enact the housing provisions of the ordinances under the
Pennsylvania Landlord Tenant Act, 68 PENN. STAT. §§ 250.101 et
seq. The ordinances provide renters the procedural protections the
statute requires.
We find that we lack sufficient evidence to make a determina-

tion on Count VIII of the complaint, which contends that the
Hazleton ordinances violate plaintiffs' privacy rights. As written,
the ordinances are too vague for us to analyze what information
will be required from workers and tenants. We therefore cannot
determine whether the ordinances violate plaintiffs' privacy rights.
Plaintiffs prevail on Count IX, which contends that defendant
exceeded its police powers. Defendant exceeded its police powers
by enacting unconstitutional ordinances.
Whatever frustrations officials of the City of Hazleton may feel
about the current state of federal immigration enforcement, the
nature of the political system in the United States prohibits the
City from enacting ordinances that disrupt a carefully drawn
federal statutory scheme. Even if federal law did not conflict with
Hazleton's measures, the City could not enact an ordinance that
violates rights the Constitution guarantees to every person in the
United States, whether legal resident or not. The genius of our
Constitution is that it provides rights even to those who evoke the
least sympathy from the general public. In that way, all in this
nation can be confident of equal justice under its laws. Hazleton,
in its zeal to control the presence of a group deemed undesirable,
violated the rights of such people, as well as others within the
community. Since the United States Constitution protects even the
disfavored, the ordinances cannot be enforced. An appropriate
order follows.
VERDICT
AND NOW, to wit, this 26th day of July 2007, we hereby
DECLARE that Hazleton Ordinance Nos. 2006-18, 2006-40 and
2007-6 (hereinafter “IIRA”) and Hazleton Ordinance No. 2006-13,
(hereinafter “RO”), are unconstitutional. We PERMANENTLY
ENJOIN the defendant from enforcing IIRA and RO.
All the plaintiffs have standing to pursue this action except
Rosa Lechuga and Jose Luis Lechuga. The Lechugas lack
standing because this lawsuit would not remedy the injury they
have suffered.
Due to the unique nature of the issues in this lawsuit, the intense
public interest in the outcome and the public antipathy expressed
towards participants in the case, the unnamed plaintiffs are
allowed to proceed anonymously.
462 APPENDICES
We have addressed the ordinances as amended through March

2007. The ordinances in their amended versions do not eliminate
the grounds for plaintiffs' constitutional challenges.
With regard to each count of the complaint, our verdict is as
follows:
Count I, the Supremacy Clause, we find FOR PLAINTIFFS.
Federal law pre-empts IIRA and RO.
Count II, Due Process, we find FOR PLAINTIFFS. IIRA and
RO violate the procedural due process protections of the Four-
teenth Amendment to the United States Constitution.
Counts III and IV, Equal Protection and the Fair Housing Act,
42 U.S.C. § § 3601, et seq., respectively, are DISMISSED.
Neither IIRA nor RO facially discriminate on the basis of race,
ethnicity or national origin.
Count V, 42 U.S.C. § 1981, we find FOR PLAINTIFFS.
Illegal aliens are “persons” under 42 U.S.C. § 1981. IIRA and RO
impermissibly burden their right to contract.
Count VI, Home Rule Charter Law, we find partially FOR
PLAINTIFFS, and we DISMISS partially. We find FOR
PLAINTIFFS with regard to the portion of IIRA which creates a
private cause of action for a dismissed employee. With regard to
the other portions of IIRA and RO, defendant did not act beyond
its municipal powers, and we DISMISS that portion of the count.
Count VII, Pennsylvania Landlord and Tenant Act, 68 PENN.
STAT. §§ 250.101 et seq is DISMISSED. Neither IIRA nor RO
violate the procedural protections required under the Landlord and
Tenant Act.
Count VIII, privacy rights, is DISMISSED. We lack sufficient
evidence to make a determination with regard to plaintiffs' privacy
rights.
Count IX, police powers, we find FOR PLAINTIFFS.
Enacting unconstitutional laws is beyond the defendant's police
powers.
BY THE COURT:
s/ James M. Munley
JUDGE JAMES M. MUNLEY
United States District Court
20. U.S. Senate Passage of $700 Billion Bailout, 2008 463
20. U.S. Senate Passage of $700 Billion Bailout,

20. 2008
Description: U.S. Senate passage of bill H.R. 1424 containing

Emergency Economic Stabilization Act of 2008 that became
law with the approval of President Bush on 3 October 2008.
Source: Roll call of vote number 213 of Senate, 1 October 2008,
9:22 pm, during the 2nd session of the 110th Congress, linked
via the Thomas portal and taken from the U.S. Senate website,
accessed 28 October 2008. Name particulars of senators
beyond last names were obtained from the THOMAS portal
search interface for the 110st Congress, as assessed 11
November 2008. Congressional Record, Daily Digest, daily
edition, 30 September 2008, p. D1216, col. 2 and p. D1217, col.
1 for the setting of the vote threshold for Senate passage of H.R.
1424 to 60 votes, found via Thomas but accurate location within
the page layout from the GPO website as linked from Thomas,
as accessed 25 November 2008.
Note: D means Democrat, R means Republican, and the two-letter
designations signify the States. The roll-call source indicated
passage of the bill required a ‘3/5’ majority, but it was more
correctly a 60-vote majority irrespective of the number of votes
cast per a unanimous-consent-time agreement made by senators
present in session on 30 September 2008. The usual passage
threshold is an absolute majority (cf. Constitution of the United
States, article 1, section 3, clause 4). Apparently senators
decided that Vice President Cheney did not have a constitutional
right to pass the bill in the event of a tie. Darn, there's safety in
numbers.
Summary
YEAs: 74 (39 Democrats, 34 Republicans, 1 Independent)
NAYs: 25 (9 Democrats, 15 Republicans, 1 Independent)
UNCASTs: 1 (1 Democrat)
Democrats: 49
Republicans: 49
Independents: 2
YEAs—74 (39 Democrats, 34 Republicans, 1 Independent)
464 APPENDICES
Daniel K. Akaka (D-HI)

Lamar Alexander (R-TN)
Max Baucus (D-MT)
Evan Bayh (D-IN)
Robert F. Bennett (R-UT)
Joseph R. Biden, Jr. (D-DE)
Jeff Bingaman (D-NM)
Christopher S. Bond (R-MO)
Barbara Boxer (D-CA)
Sherrod Brown (D-OH)
Richard Burr (R-NC)
Robert C. Byrd (D-WV)
Benjamin L. Cardin (D-MD)
Thomas R. Carper (D-DE)
Robert P. Casey, Jr. (D-PA)
Saxby Chambliss (R-GA)
Hillary Rodham Clinton (D-NY)
Tom Coburn (R-OK)
Norm Coleman (R-MN)
Susan M. Collins (R-ME)
Kent Conrad (D-ND)
Bob Corker (R-TN)
John Cornyn (R-TX)
Larry E. Craig (R-ID)
Christopher J. Dodd (D-CT)
Pete V. Domenici (R-NM)
Richard Durbin (D-IL)
John Ensign (R-NV)
Dianne Feinstein (D-CA)
Lindsey Graham (R-SC)
Chuck Grassley (R-IA)
Judd Gregg (R-NH)
Chuck Hagel (R-NE)
Tom Harkin (D-IA)
Orrin G. Hatch (R-UT)
Kay Bailey Hutchison (R-TX)
Daniel K. Inouye (D-HI)
Johnny Isakson (R-GA)
John F. Kerry (D-MA)
Amy Klobuchar (D-MN)
Herb Kohl (D-WI)
20. U.S. Senate Passage of $700 Billion Bailout, 2008 465
Jon Kyl (R-AZ)

Frank R. Lautenberg (D-NJ)
Patrick J. Leahy (D-VT)
Carl Levin (D-MI)
Joseph I. Lieberman (ID-CT)
Blanche L. Lincoln (D-AR)
Richard G. Lugar (R-IN)
Mel Martinez (R-FL)
John McCain (R-AZ)
Claire McCaskill (D-MO)
Mitch McConnell (R-KY)
Robert Menendez (D-NJ)
Barbara A. Mikulski (D-MD)
Lisa Murkowski (R-AK)
Patty Murray (D-WA)
Benjamin E. Nelson (D-NE)
Barack Obama (D-IL)
Mark L. Pryor (D-AR)
Jack Reed (D-RI)
Harry Reid (D-NV)
John D. Rockefeller IV (D-WV)
Ken Salazar (D-CO)
Charles E. Schumer (D-NY)
Gordon H. Smith (R-OR)
Olympia J. Snowe (R-ME)
Arlen Specter (R-PA)
Ted Stevens (R-AK)
John E. Sununu (R-NH)
John Thune (R-SD)
George V. Voinovich (R-OH)
John Warner (R-VA)
Jim Webb (D-VA)
Sheldon Whitehouse (D-RI)
NAYs—25 (9 Democrats, 15 Republicans, 1 Independent)
Wayne Allard (R-CO)
John Barrasso (R-WY)
Sam Brownback (R-KS)
Jim Bunning (R-KY)
Maria Cantwell (D-WA)
Thad Cochran (R-MS)
Mike Crapo (R-ID)
466 APPENDICES
Jim DeMint (R-SC)

Elizabeth Dole (R-NC)
Byron L. Dorgan (D-ND)
Michael B. Enzi (R-WY)
Russel D. Feingold (D-WI)
James M. Inhofe (R-OK)
Tim Johnson (D-SD)
Mary L. Landrieu (D-LA)
Bill Nelson (D-FL)
Pat Roberts (R-KS)
Bernard Sanders (I-VT)
Jeff Sessions (R-AL)
Richard C. Shelby (R-AL)
Debbie Stabenow (D-MI)
Jon Tester (D-MT)
David Vitter (R-LA)
Roger F. Wicker (R-MS)
Ron Wyden (D-OR)
UNCASTs—1 (1 Democrat)
Edward M. Kennedy (D-MA)
21. U.S. House Passage of $700 Billion Bailout, 2008 467
21. U.S. House Passage of $700 Billion Bailout,

21. 2008
Description: U.S. House passage of bill H.R. 1424 containing

Emergency Economic Stabilization Act of 2008 that became
law with the approval of President Bush on 3 October 2008.
Source: Vote roll call 681 of House, 3 October 2008, 1:22 pm,
during the 2nd session of the 110th Congress, linked via the
Thomas portal and taken from the U.S. House website, accessed
28 October 2008, except most names not last names and most
State and all district designations were determined from the
“Representative Offices” Web page of House members accessed
at http://www.house.gov/house/MemberWWW.shtml on 29
October 2008. “Vacancies and Successors: 110th Congress”
Web page accessed 19 February 2009 at http://clerk.house.gov
/art_history/house_history/vacancies.html?congress=110, for a
comprehensive account of House vacancies of the 110th
Congress: the single vacancy extant on 3 October 2008
stemmed from the death of Rep. Stephanie Tubbs Jones (D-OH,
11th) on 21 August 2008.
Note: D means Democrat, R means Republican, the two-letter
designations signify the States, and the ordinal numbers signify
the district within a given State.
Summary
YEAs: 263 (172 Democrats, 91 Republicans)
NAYs: 171 (63 Democrats, 108 Republicans)
UNCASTs: 0
Vacant: 1 (Ohio, 11th)
Democrats: 235
Republicans: 199
Independents: 0
YEAs—263 (172 Democrats, 91 Republicans)
Neil Abercrombie (D-HI, 1st)
Gary Ackerman (D-NY, 5th)
Rodney Alexander (R-LA, 5th)
Tom Allen (D-ME, 1st)
Robert E. Andrews (D-NJ, 1st)
468 APPENDICES
Michael A. Arcuri (D-NY, 24th)

Joe Baca (D-CA, 43rd)
Spencer Bachus (R-AL, 6th)
Brian Baird (D-WA, 3rd)
Tammy Baldwin (D-WI, 2nd)
Gresham J.Barrett (R-SC, 3rd)
Melissa L. Bean (D-IL, 8th)
Shelly Berkley (D-NV, 1st)
Howard Berman (D-CA, 28th)
Marion Berry (D-AR, 1st)
Judy Biggert (R-IL, 13th)
Sanford D. Bishop, Jr. (D-GA, 2nd)
Timothy Bishop (D-NY, 1st)
Roy Blunt (R-MO, 7th)
John A. Boehner (R-OH, 8th)
Jo Bonner (R-AL, 1st)
Mary Bono Mack (R-CA, 45th)
John Boozman (R-AR, 3rd)
Dan Boren (D-OK, 2nd)
Leonard Boswell (D-IA, 3rd)
Rick Boucher (D-VA, 9th)
Charles W. Boustany, Jr. (R-LA, 7th)
Allen Boyd (D-FL, 2nd)
Robert Brady (D-PA, 1st)
Kevin Brady (R-TX, 8th)
Bruce L. Braley (D-IA, 1st)
Henry Brown (R-SC, 1st)
Corrine Brown (D-FL, 5th)
Vern Buchanan (R-FL, 13th)
Ken Calvert (R-CA, 44th)
Dave Camp (R-MI, 4th)
John Campbell (R-CA, 48th)
Chris Cannon (R-UT, 3rd)
Eric Cantor (R-VA, 7th)
Lois Capps (D-CA, 23rd)
Michael E. Capuano (D-MA, 8th)
Dennis Cardoza (D-CA, 18th)
Russ Carnahan (D-MO, 3rd)
André Carson (D-IN, 7th)
Michael N. Castle (R-DE, At Large)
Yvette D. Clarke (D-NY, 11th)
Emanuel Cleaver (D-MO, 5th)

James E. Clyburn (D-SC, 6th)
Howard Coble (R-NC, 6th)
Steve Cohen (D-TN, 9th)
Tom Cole (R-OK, 4th)
Michael K. Conaway (R-TX, 11th)
Jim Cooper (D-TN, 5th)
Jim Costa (D-CA, 20th)
Robert “Bud” E. Cramer (D-AL, 5th)
Ander Crenshaw (R-FL, 4th)
Joseph Crowley (D-NY, 7th)
Barbara Cubin (R-WY, At Large)
Henry Cuellar (D-TX, 28)
Elijah Cummings (D-MD, 7th)
Artur Davis (D-AL, 7th)
Susan Davis (D-CA, 53rd)
Danny K. Davis (D-IL, 7th)
Davis, Tom (R-VA, 11th)
Diana DeGette (D-CO, 1st)
Rosa L. DeLauro (D-CT, 3rd)
Charles W. Dent (R-PA, 15th)
Norman D. Dicks (D-WA, 6th)
John Dingell (D-MI, 15th)
Joe Donnelly (D-IN, 2nd)
Mike Doyle (D-14th)
David Dreier (R-CA, 26th)
Donna F. Edwards (D-MD, 4th)
Chet Edwards (D-TX, 17th)
Vernon J. Ehlers (R-MI, 3rd)
Keith Ellison (D-MN, 5th)
Brad Ellsworth (D-IN, 8th)
Rahm Emanuel (D-IL, 5th)
Jo Ann Emerson (R-MO, 8th)
Eliot Engel (D-NY, 17th)
Anna G. Eshoo (D-CA, 14th)
Bob Etheridge (D-NC, 2nd)
Terry Everett (R-AL, 2nd)
Mary Fallin (R-OK, 5th)
Sam Farr (D-CA, 17th)
Chaka Fattah (D-PA, 2nd)
Michael Ferguson (R-NJ, 7th)
470 APPENDICES
Vito Fossella (R-NY, 13th)

Bill Foster (D-IL, 14th)
Barney Frank (D-MA, 4th)
Rodney Frelinghuysen (R-NJ, 11th)
Jim Gerlach (R-PA, 6th)
Gabrielle Giffords (D-AZ, 8th)
Wayne Gilchrest (R-MD, 1st)
Charlie A. Gonzalez (D-TX, 20th)
Bart Gordon (D-TN, 6th)
Kay Granger (R-TX, 12th)
Al Green, Al (D-TX, 9th)
Luis Gutierrez (D-IL, 4th)
John J. Hall (D-NY, 19th)
Phil Hare (D-IL, 17th)
Jane Harman (D-CA, 36th)
Alcee L. Hastings (D-FL, 23rd)
Wally Herger (R-CA, 2nd)
Brian Higgins (D-NY, 27th)
Rubén Hinojosa (D-TX, 15th)
Mazie K. Hirono (D-HI, 2nd)
David Hobson (R-OH, 7th)
Pete Hoekstra (R-MI, 2nd)
Rush Holt (D-NJ, 12th)
Mike Honda (D-CA, 15th)
Darlene Hooley (D-OR, 5th)
Steny H. Hoyer (D-MD, 5th)
Bob Inglis (R-SC, 4th)
Steve Israel (D-NY, 2nd)
Jesse L. Jackson, Jr. (D-IL, 2nd)
Sheila Jackson-Lee (D-TX, 18th)
Eddie Bernice Johnson (D-TX, 30)
Paul E. Kanjorski (D-PA, 11th)
Patrick Kennedy (D-RI, 1st)
Dale Kildee (D-MI, 5th)
Carolyn Kilpatrick (D-MI, 13th)
Ron Kind (D-WI, 3rd)
Pete King (R-NY, 3rd)
Mark Kirk (R-IL, 10th)
Ron Klein (D-FL, 22nd)
John Kline (R-MN, 2nd)
Joseph Knollenberg (R-MI, 9th)
John R. “Randy” Kuhl, Jr. (R-NY, 29th)

Ray LaHood (R-IL, 18th)
Jim Langevin (D-RI, 2nd)
Rick Larsen (D-WA, 2nd)
John B. Larson (D-CT, 1st)
Barbara Lee (D-CA, 9th)
Sander Levin (D-MI, 12th)
Jerry Lewis (R-CA, 41st)
John Lewis (D-GA, 5th)
Ron Lewis (R-KY, 2nd)
David Loebsack (D-IA, 2nd)
Zoe Lofgren (D-CA, 16th)
Nita Lowey (D-NY, 18th)
Daniel E. Lungren (R-CA, 3rd)
Tim Mahoney (D-FL, 16th)
Carolyn Maloney (D-NY, 14th)
Ed Markey (D-MA, 7th)
Jim Marshall (D-GA, 8th)
Doris O. Matsui (D-CA, 5th)
Carolyn McCarthy (D-NY, 4th)
Betty McCollum (D-MN, 4th)
Jim McCrery (R-LA, 4th)
James McGovern (D-MA, 3rd)
John M. McHugh (R-NY, 23rd)
Buck McKeon (R-CA, 25th)
Jerry McNerney (D-CA, 11th)
Michael R. McNulty (D-NY, 21st)
Kendrick Meek (D-FL, 17th)
Gregory W. Meeks (D-NY, 6th)
Charlie Melancon (D-LA, 3rd)
Brad Miller (D-NC, 13th)
Gary Miller (R-CA, 42nd)
George Miller (D-CA, 7th)
Harry E. Mitchell (D-AZ, 5th)
Alan B. Mollohan (D-WV, 1st)
Dennis Moore (D-KS, 3rd)
Gwen Moore (D-WI, 4th)
Jim Moran (D-VA, 8th)
Christopher S. Murphy (D-CT, 5th)
Patrick J. Murphy (D-PA, 8th)
John Murtha (D-PA, 12th)
472 APPENDICES
Sue Myrick (R-NC, 9th)

Jerrold Nadler (D-NY, 8th)
Richard E. Neal (D-MA, 2nd)
James L. Oberstar (D-MN, 8th)
David R. Obey (D-WI, 7th)
John Olver (D-MA, 1st)
Solomon P. Ortiz (D-TX, 27th)
Frank Pallone Jr. (D-NJ, 6th)
Bill Pascrell, Jr. (D-NJ, 8th)
Ed Pastor (D-AZ, 4th)
Nancy Pelosi (D-CA, 8th)
Ed Perlmutter (D-CO, 7th)
John E. Peterson (R-PA, 5th)
Charles “Chip” W. Pickering (R-MS, 3rd)
Earl Pomeroy (D-ND, At Large)
Jon Porter (R-NV, 3rd)
David Price (D-NC, 4th)
Deborah Pryce (R-OH, 15th)
Adam Putnam (R-FL, 12th)
George P. Radanovich (R-CA, 19th)
Nick Rahall (D-WV, 3rd)
Jim Ramstad (R-MN, 3rd)
Charles B. Rangel (D-NY, 15th)
Ralph Regula (R-OH, 16th)
Silvestre Reyes (D-TX, 16)
Thomas M. Reynolds (R-NY, 26th)
Laura Richardson (D-CA, 37th)
Mike Rogers (R-AL, 3rd)
Harold Rogers (R-KY, 5th)
Ileana Ros-Lehtinen (R-FL, 18th)
Mike Ross (D-AR, 4th)
Dutch Ruppersberger (D-MD, 2nd)
Bobby L. Rush (D-IL, 1st)
Tim Ryan (R-OH, 17th)
Paul Ryan (R-WI, 1st)
John P. Sarbanes (D-MD, 3rd)
Jim Saxton (R-NJ, 3rd)
Jan Schakowsky (D-IL, 9th)
Adam Schiff (D-CA, 29th)
Jean Schmidt (R-OH, 2nd)
Allyson Y. Schwartz (D-PA, 13th)
David Scott (D-GA, 13th)

Pete Sessions (R-TX, 32nd)
Joe Sestak (D-PA, 7th)
John Shadegg (R-AZ, 3rd)
Christopher Shays (R-CT, 4th)
Bill Shuster (R-PA, 9th)
Mike Simpson (R-ID, 2nd)
Albio Sires (D-NJ, 13th)
Ike Skelton (D-MO, 4th)
Louise Slaughter (D-NY, 28th)
Lamar Smith (R-TX, 21st)
Adam Smith (D-WA, 9th)
Vic Snyder (D-AR, 2nd)
Hilda Solis (D-CA, 32nd)
Mark E. Souder (R-IN, 3rd)
Zachary T. Space (D-OH, 18th)
Jackie Speier (D-CA, 12th)
John Spratt (D-SC, 5th)
John Sullivan (R-OK, 1st)
Betty Sutton (D-OH, 13th)
Tom Tancredo (R-CO, 6th)
John Tanner (D-TN, 8th)
Ellen Tauscher (D-CA, 10th)
Lee Terry (R-NE, 2nd)
Mike Thompson (D-CA, 1st)
Mac Thornberry (R-TX, 13th)
Pat Tiberi (R-OH, 12th)
John Tierney (D-MA, 6th)
Edolphus Towns (D-NY, 10th)
Niki Tsongas (D-MA, 5th)
Fred Upton (R-MI, 6th)
Chris Van Hollen (D-MD, 8th)
Nydia M. Velázquez (D-NY, 12th)
Greg Walden (R-OR, 2nd)
Jim Walsh (R-NY, 25th)
Zach Wamp (R-TN, 3rd)
Debbie Wasserman Schultz (D-FL, 20th)
Maxine Waters (D-CA, 35th)
Diane E. Watson (D-CA, 33rd)
Mel Watt (D-NC, 12th)
Henry Waxman (D-CA, 30th)
474 APPENDICES
Anthony D. Weiner (D-NY, 9th)

Peter Welch (D-VT, At Large)
Dave Weldon (R-FL, 15th)
Jerry Weller (R-IL, 11th)
Robert Wexler (D-FL, 19th)
Heather Wilson (R-NM, 1st)
Charles A. Wilson (D-OH, 6th)
Joe Wilson (R-SC, 2nd)
Frank Wolf (R-VA, 10th)
Lynn Woolsey (D-CA, 6th)
David Wu (D-OR, 1st)
John A. Yarmuth (D-KY, 3rd)
NAYs—171 (63 Democrats, 108 Republicans)
Robert Aderholt (R-AL, 4th)
Todd Akin (R-MO, 2nd)
Jason Altmire (D-PA, 4th)
Michele Bachmann (R-MN, 6th)
John Barrow (D-GA, 12th)
Roscoe Bartlett (R-MD, 6th)
Joe Barton (R-TX, 6th)
Xavier Becerra (D-CA, 31st)
Brian P. Bilbray (R-CA, 50th)
Gus M. Bilirakis (R-FL, 9th)
Rob Bishop (R-UT, 1st)
Marsha Blackburn (R-TN, 7th)
Earl Blumenauer (D-OR, 3rd)
Nancy E. Boyda (D-KS, 2nd)
Paul C. Broun (R-GA, 10th)
Virginia “Ginny” Brown-Waite (R-FL, 5th)
Michael Burgess (R-TX, 26th)
Dan Burton (R-IN, 5th)
G. K. Butterfield (D-NC, 1st)
Steve Buyer (R-IN, 4th)
Shelley Moore Capito (R-WV, 2nd)
Christopher P. Carney (D-PA, 10th)
John Carter (R-TX, 31th)
Kathy Castor (D-FL, 11th)
Don Cazayoux (D-LA, 6th)
Steve Chabot (R-OH, 1st)
Ben Chandler (D-KY, 6th)
Travis Childers (D-MS, 1st)
William “Lacy” Clay, Jr. (D-MO, 1st)

John Conyers, Jr. (D-MI, 14th)
Jerry Costello (D-IL, 12th)
Joe Courtney (D-CT, 2nd)
John Culberson (R-TX, 7th)
Geoff Davis (R-KY, 4th)
David Davis (R-TN, 1st)
Lincoln Davis (D-TN, 4th)
Nathan Deal (R-GA, 9th)
Peter DeFazio (D-OR, 4th)
William Delahunt (D-MA, 10th)
Lincoln Diaz-Balart, (R-FL, 21st)
Mario Diaz-Balart, (R-FL, 25th)
Lloyd Doggett (D-TX, 25th)
John Doolittle (R-CA, 4th)
Thelma D. Drake (R-VA, 2nd)
John J. Duncan, Jr. (R-TN, 2nd)
Phil English (R-PA, 3rd)
Chaka Feeney (R-PA, 2nd)
Bob Filner (D-CA, 51st)
Jeff Flake (R-AZ, 6th)
J. Randy Forbes (R-VA, 4th)
Jeff Fortenberry (R-NE, 1st)
Virginia Foxx (R-NC, 5th)
Trent Franks (R-AZ, 2nd)
Elton Gallegly (R-CA, 24th)
Scott Garrett (R-NJ, 5th)
Kirsten E. Gillibrand (D-NY, 20th)
Phil Gingrey (R-GA, 11th)
Louie Gohmert (R-TX, 1st)
Virgil H. Goode, Jr. (R-VA, 5th)
Bob Goodlatte (R-VA, 6th)
Sam Graves (R-MO, 6th)
Gene Green (D-TX, 29th)
Raul Grijalva (D-AZ, 7th)
Ralph M. Hall (R-TX, 4th)
Doc Hastings (R-WA, 4th)
Robin Hayes (R-NC, 8th)
Dean Heller (R-NV, 2nd)
Jeb Hensarling (R-TX, 5th)
Stephanie Herseth Sandlin (D-SD, At Large)
476 APPENDICES
Baron Hill (D-IN, 9th)

Maurice Hinchey (D-NY, 22nd)
Paul W. Hodes (D-NH, 2nd)
Tim Holden (D-PA, 17th)
Kenny Hulshof (R-MO, 9th)
Duncan Hunter (R-CA, 52nd)
Jay Inslee (D-WA, 1st)
Darrell Issa (R-CA, 49th)
William J. Jefferson (D-LA, 2nd)
Henry “Hank” C. Johnson, Jr. (D-GA, 4th)
Timothy V. Johnson (R-IL, 15th)
Sam Johnson (R-TX, 3rd)
Walter B. Jones (R-NC, 3rd)
Jim Jordan (R-OH, 4th)
Steve Kagen (D-WI, 8th)
Marcy Kaptur (D-OH, 9th)
Ric Keller (R-FL, 8th)
Steve King (R-IA, 5th)
Jack Kingston (R-GA, 1st)
Dennis J. Kucinich (D-OH, 10th)
Doug Lamborn (R-CO, 5th)
Nick Lampson (D-TX, 22nd)
Tom Latham (R-IA, 4th)
Steven C. LaTourette (R-OH, 14th)
Robert E. Latta (R-OH, 5th)
John Linder (R-GA, 7th)
Daniel Lipinski (D-IL, 3rd)
Frank LoBiondo (R-NJ, 2nd)
Frank Lucas (R-OK, 3rd)
Stephen F. Lynch (D-MA, 9th)
Connie Mack (R-FL, 14th)
Donald Manzullo (R-IL, 16th)
Kenny Marchant (R-TX, 24th)
Jim Matheson (D-UT, 2nd)
Kevin McCarthy (R-CA, 22nd)
Michael T. McCaul (R-TX, 10th)
Thaddeus McCotter (R-MI, 11th)
Jim McDermott (D-WA, 7th)
Patrick T. McHenry (R-NC, 10th)
Mike McIntyre (D-NC, 7th)
Cathy McMorris Rodgers (R-WA, 5th)
John Mica (R-FL, 7th)

Michael Michaud (D-ME, 2nd)
Jeff Miller (R-FL, 1st)
Candice Miller (R-MI, 10th)
Dennis Moran (R-KS, 3rd)
Tim Murphy (R-PA, 18th)
Marilyn Musgrave (R-CO, 4th)
Grace Napolitano (D-CA, 38th)
Randy Neugebauer (R-TX, 19th)
Devin Nunes (R-CA, 21st)
Ron Paul (R-TX, 14th)
Donald M. Payne (D-NJ, 10th)
Steve Pearce (R-NM, 2nd)
Mike Pence (R-IN, 6th)
Collin C. Peterson (D-MN, 7th)
Thomas Petri (R-WI, 6th)
Joseph R. Pitts (R-PA, 16th)
Todd Platts (R-PA, 19th)
Ted Poe (R-TX, 2nd)
Tom Price (R-GA, 6th)
Dennis Rehberg (R-MT, At Large)
David G. Reichert (R-WA, 8th)
Rick Renzi (R-AZ, 1st)
Ciro Rodriguez (D-TX, 23rd)
Mike Rogers (R-MI, 8th)
Dana Rohrabacher (R-CA, 46th)
Peter J. Roskam (R-IL, 6th)
Steven Rothman (D-NJ, 9th)
Lucille Roybal-Allard (D-CA, 34th)
Ed Royce (R-CA, 40th)
John T. Salazar (D-CO, 3rd)
Bill Sali (R-ID, 1st)
Linda T. Sánchez (D-CA, 39th)
Loretta Sanchez (D-CA, 47th)
Steve Scalise (R-LA, 1st)
Robert “Bobby” C. Scott (D-VA, 3rd)
F. James Sensenbrenner (R-WI, 5th)
José E. Serrano (D-NY, 16th)
Carol Shea-Porter (D-NH, 1st)
Brad Sherman (D-CA, 27th)
John Shimkus (R-IL, 19th)
478 APPENDICES
Heath Shuler (D-NC, 11th)

Adrian Smith (R-NE, 3rd)
Chris Smith (R-NJ, 4th)
Fortney Pete Stark (D-CA, 13th)
Cliff Stearns (R-FL, 6th)
Bart Stupak (D-MI, 1st)
Gene Taylor (D-MS, 4th)
Bennie G. Thompson (D-MS, 2nd)
Todd Tiahrt (R-KS, 4th)
Michael Turner (R-OH, 3rd)
Mark Udall (D-CO, 2nd)
Tom Udall (D-NM, 3rd)
Peter Visclosky (D-IN, 1st)
Timothy Walberg (R-MI, 7th)
Timothy J. Walz (D-MN, 1st)
Lynn A. Westmoreland (R-GA, 3rd)
Ed Whitfield (R-KY, 1st)
Robert J. Wittman (R-VA, 1st)
Don Young (R-AK, At Large)
C. W. Bill Young (R-FL, 10th)
ENDNOTES
Endnotes are grouped by what they reference: an epigraph, a
figure, a table, or a paragraph in the regular text (or perhaps a
paragraph-like portion partitioned by block-quote formatting), or a
sequence of any such type. Each endnote entry is labeled by the
last containing page, the type, and a disambiguating identifier of
each referenced item. The respective types are represented as: epi,
fig, tab, and para. The references to paragraphs within epigraphs,
within tables, and within the regular text are disambiguated by last
word. If an entry refers to more than one paragraph ending on a
page of the main text, the final words are enumerated together in
sequential order. Moreover, the partitive items are treated in the
order they fully appear, and the particulars of each entry are gener-
ally so, subject to convenient grouping by cited source.
References to cited sources are abbreviated after an initial full
reference to the same, or the same type of document, for endnotes
of the same subchapter or under the same chapter-level heading.
Because Uniform Resource Locators (URLs) are often long and
are always precise, they are presented in a contrasting font, marked
with a dotted underline, and divided as expedient across lines of
text. The line breaks of URLs are unadorned by inserted hyphens
or other printable characters, and sometimes URLs contain
hyphens. Bear in mind URLs can't work in a browser without
continuity and precision.
The last page of a cited page range may be abbreviated as the
one or two final digits differing from those of the first page of the
range. For example, ‘pp. 14–5’ means ‘pages 14–15’.
On occasion though not exhaustively, citations in the endnotes
indicate the referential chaining of sources. The elementary
reasons to do so are to credit sources for citations useful to the
research of this work, to demonstrate the iterative aspect of the
research process, and to present navigable conceptual connections
between sources. The ultimate purpose is to impart a working
knowledge of the given subject. Moreover it is to provide you the
479
480 ENDNOTES of Chapter 1
reader with a psychological template for an essential and tragically

neglected rudiment of civilization: the faculty to competently navi-
gate, explore, and expand one's intellectual and greater psycholog-
ical reality. Growth of psychological sophistication naturally
emphasizes the intellectual vis-à-vis the emotional. Decoupling of
the two mental realms is indicative of psychological neurosis if not
somatic neurosis typical of Y-chromosome deficiency, in this
layman's opinion.
Chapter 1: The Legacy Denuded
1 epi: weak
Woodrow Wilson, The New Freedom: A Call for the Emancipation of
the Generous Energies of a People (New York: Doubleday, Page &
Company, 1913), p. 15 for epigraph.
1 para: longer
In the U.S., the Act of 22 March 1794, ch. 11 prohibited supply and
support of any slave ship, and the Act of 2 March 1807, ch. 22 effective
after 1 January 1808 forbid the importation of slaves. In Britain, An Act
for the Abolition of the Slave Trade of 25 March 1807 (47 Georgii III,
Session 1, capitulus XXXVI), effective 1 May 1807, and An Act to amend
the Act for the Abolition of Slavery in the British Colonies of 11 April
1838 (1&2 Victoriae, capitulus XIX). The Latin designation translates as
the only session of parliament to occur in the years 1&2 of Victoria's reign,
chapter 19.
The “American Memory” portal of the U.S. Library of Congress
contains a useful “Century of Lawmaking” digital collection. The collec-
tion documents anti-slave law. The easiest way to access it as I write this
is to follow a link at the bottom left of the main Web page of the Thomas
portal of the U.S. Library of Congress at http://thomas.loc.gov. Alterna-
tively access it by directing your browser to http://www.loc.gov->link
“American Memory”->navigate to collection “U.S. Congress ~ Documents
~ 1774-1875.” From the main Web page of the Century of Lawmaking,
follow the link “Statutes at Large”->link “Browse” of Statutes at
Large->link into a volume display, note a listing of contents, and navigate
by page. For the 1794 law, see Vol. 1, pp. 347–9. For the 1807 (U.S.) law,
see Vol. 2, pp. 426–30. “William Loney RN - Background” Web page
http://www.pdavis.nl/Legislation.htm as accessed 12 September 2006 docu-
ments online British anti-slave law. Some law libraries, yes in America,
will have the British Statutes at Large.
The 1830s saw the Nat Turner slave rebellion and gang suppression of
northern anti-slavery societies prominently featuring able women albeit
without suffrage. Sir Reginald Coupland, The British Anti-Slavery Move-
ment, 2nd. ed., (New York: Barnes & Noble, Inc., 1964), p. 152 about
compromise in the U.S. Constitution and the fact that President Jefferson
signed the act prohibiting the slave trade, and incidentally, p. 151 about
legal prohibition of the slave trade by Denmark enacted in 1792 and effec-
tive in 1804, by Sweden enacted in 1813, and by Holland enacted in 1814.
ENDNOTES of Chapter 1 481
In Founding Father and slave owner Thomas Jefferson we can see the
contrast between sociological (systemic) and individual (parametric) effi-
cacy; he never freed his slaves, not even posthumously. Monticello was
no doubt a most cherished possession. The political landscape comes into
focus when we observe that four of the first five U.S. presidents were
Virginian slavocrats: the exception John Adams never owned a slave nor
came from Virginia. Robert Carter III, a fellow Virginian slavocrat, volun-
tarily freed more personal slaves than any other American in history,
something contrary to the stiffening politics of his day. Consistent with
human mechanics then and now, his name has had little historical recogni-
tion. Great presidents tend to be greater politicians navigating the monu-
mental transitions of a humanity tragically short on greatness. Roger G.
Kennedy, Mr. Jefferson's Lost Cause: Land, Farmers, Slavery, and the
Louisiana Purchase (New York: Oxford University Press, 2003), p. 2 for
four of the five U.S. Presidents in office from 1789 until 1824 coming
from Virginia's planter class, with the exception of John Adams for a
single term. Andrew Levy, The First Emancipator: The Forgotten Story of
Robert Carter, the Founding Father Who Freed His Slaves (New York:
Random House, c2005), p. 190 for John Adams never having owned a
slave and the detachment of Robert Carter from proslavery Virginian poli-
tics, pp. xi, xviii, 146 for the most slaves freed by an American slave-
holder, and p. xvii for the reintrenchment of slavery in the 1790s and
eighteen-singles (1800–1809), facilitated by invention of the cotton gin in
1793.
2 para: per se
Kenneth M. Stampp, The Causes of the Civil War, 3rd ed. (New York:
Touchstone, 1991), pp. 86–8 excerpting Frank Moore, The Rebellion
Record (New York: 1861–8), Supplement, pp. 362–8 documenting a
November 1960 speech of U.S. Senator Robert Toombs of Georgia before
the Georgia State legislature, as a source on protectionism and subsidy,
and pp. 43–4 excerpting Richard K. Cralle, The Works of John C. Calhoun
(New York: 1853–6), IV, pp. 542–73 documenting a 4 March 1850 speech
of U.S. Senator John C. Calhoun of South Carolina on the U.S. Senate
floor, for slave recovery and balance of states. Lincoln's Emancipation
Proclamation issued in the second year of the Civil War would only free
eventually the slaves on land controlled by the Confederacy as of 1
January 1863. Honest Abe was clearly a former lawyer and a skilled
politician. “The Emancipation Proclamation” Web page
http://www.archives.gov/exhibits/featured_documents/emancipation_procla
mation/ accessed 10 September 2006.
2 para: world
Mark A. Noll, “The Bible and Slavery,” in Religion and the American
Civil War, eds. R. M. Miller, H. S. Stout, and C. R. Wilson (New York:
Oxford University Press, 1998), pp. 46–7, 62 about the cultural preemi-
nence of the literal interpretation of the Bible. In today's recent history,
President Bush employed a foreign policy battling for the ‘hearts and
minds of the Iraqi people.’ The nascent United States did have opponents
of slavery including slave owner Thomas Jefferson, and irresolute
Methodists, and the results were largely ineffectual. Reformist Quakers

did forge a precocious microcosm of humanity and activism. W. D.
Weatherford, American Churches and the Negro: An Historical Study from
Early Slave Days to the Present (The Christopher Publishing House,
c1957), ch. 2, pp. 50–83 about Quakers, ch. 3, pp. 84–111 about
Methodists. Still slavery was, as it had been, status quo. John Henry
Hopkins, A Scriptural, Ecclesiastical, and Historical View of Slavery, from
the Days of the Patriarch Abraham, to the Nineteenth Century.: Addressed
to the Right Rev. Alonzo Potter (New York: W. I. Pooley & Co., c1864),
pp. 115 and 123 (available online from ‘Making of America’, see table
FR.3 on page 362). Madeleine Hooke Rice, American Catholic Opinion
in the Slavery Controversy (Gloucester, Mass.: Peter Smith, 1964, reprint
of c1944), p. 11 citing Paul Allard, “Esclavage,” Dictionnaire Apologé-
tique de la Foi Catholique, V, 1469-1475; Paul-Louis, Ancient Rome at
Work, 131-147; W. L. Westermann, “Ancient Slavery,” Encyclopedia of
the Social Sciences, XIV, 74-77; “Sklaverei,” Pauly-Wissowa-Kroll,
Realencyclopädie Der Classichen Altertumswissenschaft, Supplement-
band, VI, 994-1067 about the acceptance of slavery by the Catholic
Church from inception and about the ownership of slaves by the Catholic
Church through its agents, and p. 20 citing H. H. Aimes, Slavery in Cuba,
17 about Pope Urban VIII forbidding the slave trade (not slavery itself) in
1639. This tenuous position was maintained by the Catholic Church even
into the years of the American Civil War; see for example Weatherford,
American Churches, pp. 241–4 and Rice, American Catholic, pp. 20–1,
both citing divers sources.
3 para: Sumter
Mark A. Noll, “The Bible and Slavery,” p. 43 about the Authorized
Version—a.k.a the King James Version—being virtually the only version
read by Americans. The story of political contest within the Methodist
Episcopal Church, decidedly anti-slavery at its founding in 1784, is a
compelling illustration of amenable morality under the power of slave-
driven economics; such is given by “The Methodist Episcopal Church and
Slavery,” London Review, Vol. 15, No. 29 (October 1860), pp. 111–150.
W. G. Brownlow and Abram Pryne, Ought American Slavery To Be
Perpetuated?: A Debate Between Rev. W. G. Brownlow and Rev. A. Pryne.
Held at Philadelphia, September., 1858. (Philadelphia: J. B. Lippincott &
Co., c1858), p. 98 for an actual debate about slavery using arguments
based on Scripture with surprisingly lopsided results. Theodore Dwight
Weld, American Slavery As It Is: Testimony of a Thousand Witnesses.
(New York: The American Anti-Slavery Society, 1839 or New York: Arno
Press and The New York Times, 1968). Bourne as reprinted in John W.
Christie and Dwight L. Dumond, George Bourne and The Book and
Slavery Irreconcilable (Wilmington, Delaware: The Historical Society of
Delaware and also Philadelphia: The Presbyterian Historical Society,
c1969), p. 119 about Bourne's manstealing argument. James W. C.
Pennington, The Fugitive Blacksmith; or, Events in the History of James
W. C. Pennington, Pastor of a Presbyterian Church, New York, Formerly a
Slave in the State of Maryland, United States., 3rd ed. (Westport,
Connecticut: Negro University Press, 1971), pp. 57 and 76 for Penning-

ton's quotes. The aforesaid 3rd edition was originally published in London
by Charles Gilpin in 1850.
3 para: won
Joseph E. Stevens, 1863: The Rebirth of a Nation (New York: Bantam
Books, 1999), pp 125, 127, 129 regarding Union soldier substitutes for
John Rockefeller, J. Pierpont Morgan, and Andrew Carnegie, respectively;
p. 133 regarding Confederate substitutes and an exemption for sizable
plantations; p. 121 citing Colonel Henry S. Olcott, “The War's Carnival of
Fraud,” The Annals of War Written by Leading Participants, 3 vols.
(Philadelphia: 1879), pp. 706–7 for soldier's equipment; p. 132 about
hoarding; pp. 135–9 about the Bread Riot of 2 April 1863 in Richmond,
VA (I presume children and wives were starving). Per Brownlow and
Pryne on page 14, Reverend Brownlow wrote to Reverend Pryne in 1858,
‘You say your purpose is, in our forthcoming debate, not to make war upon
the South, but upon “the institution of slavery.” We are unable in the
South, to distinguish between a war upon the South, and this institution.’
“Slave Politics and Economics,” London Review, Vol. 14, No. 28 (July
1860), pp. 309–336 provides a prewar analysis on the economic differ-
ences between North and South. An earlier economic analysis lacking
slavery assessment, particularly the negative variety, by Professor George
Tucker of the University of Virginia is Progress of Population and Wealth
in the United States in Fifty Years, as exhibited by the Decennial Census
taken in that period. That work as examined here is from a reprint of chap-
ters 17 and 18 in New York paper Merchants' Magazine, Vol. 9, No. 1
(July 1843), pp. 47–58.
3 para: history
Weld, p. 117 for the quote by the Virginia judge. Lysander Spooner,
The Unconstitutionality of Slavery, Enlarged Edition (Boston: Bela Marsh,
1860), p. 5 for Spooner's quote. The first part of the enlarged edition was
originally published in 1845 as The Unconstitutionality of Slavery. A
decade before Lincoln proclaimed ‘of the people,’ Spooner made the point
that juries of criminal cases have the right and duty to judge not only what
is the law but also what is the justice of the law. Otherwise, he reasoned,
they embody a trial by the government—mere tools of tyranny and oppres-
sion—rather than a ‘trial per pais’ or trial by the country. Lysander
Spooner, An Essay on the Trial by Jury (Boston: John P. Jewett and
Company, 1852), pp. 5–6 for Spooner's cautionary distinction between law
and justice.
4 para: Indies
“Historical and Statistical View of the Working of Emancipation in
Jamaica,” New Englander, Vol. 6, No. 24 (October 1848), p. 559 about
Jamaican events.
4 para: workers
Richard B. Sheridan, “The West India Sugar Crisis and British Slave
Emancipation, 1830-1833,” Journal of Economic History, Vol. 21, No. 4
(December 1961); p. 547 for the 20 millions; p. 542 and p. 549 citing
Richard Pares, Merchants and Planters, Ec. Hist. Rev. Supplement No. 4
(Cambridge Univ. Press, 1960), p. 49 and Eric Williams, Capitalism and
Slavery (Chapel Hill: Univ. of North Carolina Press, 1944), pp. 43–4, 62,
74–5, 88, 90, 94, 105 and Parl. Papers, 1837–38, XLVIII, pp. 92, 163,
309–14 about London creditors; pp. 539–40 about prices and competition;
p. 541 citing George Roberts, The Population of Jamaica (Cambridge: At
the University Press, 1957), pp. 30–41, 165, 216–47 about population
decline; p. 541 citing William Dickson, Mitigation of Slavery (London,
1814), pp. 453–7; and p. 550 citing Alfred H. Conrad and John R. Meyer,
“The Economics of Slavery in the Ante Bellum South,” J. Pol. Ec., LXVI,
No. 2 (April 1958), pp. 95–9 for life expectancy; and p. 548 for importa-
tion. Olwyn M. Blouet, “Earning and Learning in the British West Indies:
An Image of Freedom in the Pre-Emancipation Decade, 1823-1833,”
Historical Journal, Vol. 34, No. 2 (June 1991), p. 395 for missionary
amelioration, and p. 407 for intended qualifications of freedom.
4 para: warranted
Sheridan, p. 540 about increasingly unprofitable. Thomas Carlyle,
“Fifteen Years of Emancipation in the West Indies,” Old Guard, Vol. 4,
No. 4 (April 1866), p. 242 for the quote originally with double quotes
around ‘freedom,’ (i.e. “freedom,”) and the footnote on page 239 for cita-
tion of the original source as a pamphlet (London: 1849).
4 para: work
Early nineteenth century Ireland exemplifies the danger of land owner-
ship by socially detached foreigners. “Industrial Reform,” Democratic
Review, Vol.23, No. 126 (December 1848), p. 517 about exorbitant rent.
“National Economy,” No. 4, “Surplus Labour; and the Remedies
Proposed: I. Poor-Laws for Ireland,” Fraser's Magazine For Town and
Country, Vol. 7, No. 39 (March 1833), pp. 285–6 about exorbitant rent, pp.
283, 290–1 about poor-laws and politics.
5 para: communism
“National Economy,” No. 5, “The Factory System—The Ten Hour
Bill,” Fraser's Magazine For Town and Country, Vol. 7, No. 40 (April
1833), pp. 377–92 for a gut-wrenching read about the treatment of chil-
dren, p. 384 bottom right and p. 391 bottom left for six years of age. The
Tiny Tim quote comes from Charles Dickens, A Christmas Carol (1843),
or any reprint, about a third into stave 3. Communist Manifesto by Karl
Marx and Friedrich Engels, German exiles in England, was first published
in the German language from London in 1848.
5 para: shadow
Charles Dickens, American Notes (1842), or any reprint, a few para-
graphs from the end of chapter 4 about Lowell for the quote.
6 para: States
Walter Licht, Industrializing America: The Nineteenth Century, (Balti-
more: The John Hopkins University Press, 1995), pp. 58–61, about the
Lowell workforce. Rev. John Talbot Smith, “The Children at Work,”
Catholic World, Vol. 43, No. 257 (August 1886), pp. 619–25 for a frank
critique of child labor and its social context then existent in the Northeast.
Allen Nevins, The Emergence of Modern America, 1865-1878 (New York:
The MacMillan Company, c1927), p. 360 about the evil of child labor in
the South in the mid-1870s not generally subject to public reproach, and
pp. 334–5 about the organized movement against child labor abuses
largely ‘an outgrowth of the protection of dumb animals,’ for in a New
York court case of 1874, intervention for a child's welfare was argued
using animal protection law. William Dudley, ed., The Industrial Revolu-
tion: Opposing Viewpoints (San Diego: Greenhaven Press, Inc., c1998),
pp. 213, 215 for a 1906 censure of child labor practices in both the North
and the South taken from Edwin Markham, “The Hoe Man in the
Making,” Cosmopolitan (September 1906). “Immigration: Its Results, and
Future Policy.”, De Bow's Commercial Review, Vol. 13, No. 5 (November
1852), p. 456 referring to the magazine's editor in lieu of the article's
author not identified.
6 para: time
Dudley, ed., Industrial Revolution, p. 60 citing George Fitzhugh, a
Virginia lawyer, from an 1851 pamphlet reprinted in George Fitzhugh,
Sociology for the South (1854) for Fitzhugh's words, and p. 61 citing
Orestes A. Brownson, “The Laboring Classes,” Boston Quarterly Review
(July 1840) for Brownson's quote.
6 para: line
The Civil War: Primary Documents on Events from 1860 to 1865, ed.
Ford Risley (Westport, Conn.: Greenwood Press, 2004), pp. 35–38 about
secession. “Andrew Jackson” Web page http://www.whitehouse.gov/
history/presidents/aj7.html accessed 19 December 2006 about the disposi-
tion of Jackson and the dispute with South Carolina though the year is not
given. President Jacksons' proclamation of 10 December 1832, available
online at http://www.presidency.ucsb.edu from The American Presidency
Project, addresses the tariff dissent by South Carolina: John Woolley and
Gerhard Peters, The American Presidency Project, Web hosting by Univer-
sity of California (Santa Barbara, CA), database by Gerhard Peters. The
‘Century of Lawmaking’ digital collection from the Web site of the U.S.
Library of Congress also has the proclamation, though its version is
shorter and misdated 10 December 1833: Elliot's Debates, Vol. 4, pp. 582–
92. It would be out of character for Andrew Jackson to wait over a year to
respond to a challenge that Elliot's Debates, Vol. 4, p. 582 identifies as:
“The Ordinance of South Carolina, on the Subject of the Tariff, on the 24th
November, 1832.”
7 para: gone
Isaac H. Arnold, “Plot to Assassinate Abraham Lincoln,” Harper's New
Monthly Magazine, Vol. 37, No. 217 (June 1868), pp. 123–128. Leonard
Swett, “The Conspiracies of the Rebellion,” North American Review, Vol.
144, No. 363 (of series, No. 2 of volume) (February 1887), pp. 179–89.
Victor Louis Mason, “Four Lincoln Conspiracies,” Century, Vol. 51, No. 6
(April 1896), pp. 889–90.
7 para: program
Arthur S. Link, “Wilson, (Thomas) Woodrow,” Encyclopedia Ameri-
cana: International Edition, 1999 ed., vol. 29, p. 9, col. 1 for the first
estate tax in American history achieved under the Wilson presidency.
9 para: well
Hugh McCulloch, “Resumption of Specie Payments,” North American
Review, Vol. 125, No. 259 (November 1877), p. 398 for the quote. The
revocation by said section 3 is in the United States Statutes at Large, Vol.
12, p. 711 (12 Stat. 711). Congressional Globe, 37th Congress, 3rd
session (1863), New Series No. 97 (4 March 1863), p. 1541, col. 1 for
President Lincoln's signing of House Bill No. 659, “An act to provide
ways and means for the support of the Government.”
9 para: war
Milton Friedman and Anna Jacobson Schwartz, A Monetary History of
the United States, 1867–1960 (Princeton: Princeton University Press,
1963) pp. 44–7 for the political struggle and the Supreme Court cases
Hepburn v. Griswold decided on 7 February 1870 and Knox v. Lee decided
on 1 May 1871, and pp. 7, 48 about the resumption of specie payments on
1 January 1879.
11 para: citizens
U.S. Senate Journal, 22th Congress, 1st session (1831), 10 July 1832, p.
435 for the first quote of Jackson, from a veto message dated 10 July 1832,
and p. 437 for the second quote of Jackson, from the same veto message.
12 para: later
Free banking means freedom of business entry. Alan Greenspan, “The
Evolution of Banking in a Market Economy,” Remarks by Chairman Alan
Greenspan at the Annual Conference of the Association of Private Enter-
prise Education, Arlington, Virginia, 12 April 1997, as accessed 11 Jan
2007 at http://www.federalreserve.gov/boarddocs/speeches/1997/19970412
.htm details U.S. banking history including free banking.
12 para: disfavor
Henry Pratt Fairchild, Immigration: A World Movement and Its Amer-
ican Significance (New York: The MacMillan Company, 1913), pp. 90–1
about immigration trends and public perception, and pp. 153, 274–93
about exploitation of new immigrants. Emerson David Fite, Social and
Industrial Conditions in the North During the Civil War (New York: Fred-
erick Ungar Publishing Co., 1963), p. 195 about public perception of
immigrants during the Civil War.
12 para: Island
Thomas W. Page, “The Transportation of Immigrants and Reception
Arrangements in the Nineteenth Century,” Journal of Political Economy,
Vol. 19, No. 9 (November 1911), p. 736 about the supremacy of New York
City as an immigrant entry port, and pp. 748–9 about the takeover of
immigration at New York City by the Federal Government. Joseph H.
Senner, “The Immigration Question,” Annals of the American Academy of
Political and Social Science, Vol. 10 (July 1897), p. 3 for inference of no
control of immigration along land borders, and p. 4 about the move to Ellis
Island in 1893. Historical Statistics of the United States, Colonial Times
to 1970, bicentennial ed., part 1, U.S. Bureau of the Census, as accessed
23 April 2007 from the “Statistical Abstracts” Web page at
http://www.census.gov/prod/www/abs/statab.html, p. 97, col. 1 about the
incompleteness of immigration statistics regarding arrivals by land borders
during the 19th century and the interruption of data gathering because of
the Civil War.
12 para: 38
Fairchild, Immigration, pp. 90–1 about the two acts, ongoing protests,
and the emergence of general public opposition to contract labor circa
1868.
13 para: over
Joel Tyler Headley, The Great Riots of New York: 1712-1873 (New
York: Thunder's Mouth Press, 2004), pp. 89, 91 about fighting police.
Great Riots (2004) reprints Headley, The Great Riots of New York, 1712 to
1873. Including a Full and Complete Account of the Four Days' Draft Riot
of 1863. (New York: E. B. Treat, 1873). Gustavus Myers, The History of
Tammany Hall, 2nd Edition, Revised and Enlarged (New York: Burt
Franklin, 1968), pp. 73–4 for election violence in 1827 by Democrats
newly with immigrants, pp. 157–60 for same in 1852 by Whigs and
Democrats, pp. 178–80 for same in 1856 by Democrats. Fite, Conditions,
p. 189 for strikes and murder, and p. 192 for more of foreign-born voters.
Campbell Gibson and Emily Lennon, “Historical Census Statistics on the
Foreign-born Population of the United States: 1850-1990,” Population
Division Working Paper No. 29, online version as accessed 18 November
2006, U.S. Bureau of the Census, table 4 for ethnic groups, and table 20
for foreign-born residents nearly a majority at 47.2%, both citing the 1860
U.S. Census.
13 para: thousands
David M. Barnes, The Draft Riots in New York. July, 1863. The
Metropolitan Police: Their Services During Riot Week. Their Honorable
Record. (New York: Baker & Godwin, 1863), p. 9 for two thousand police-
men. Headley, Great Riots (2004), pp. 110, 118 for mob numbers.
14 para: thousand
Pete Hamill, introduction of Headley, Great Riots (2004), p. xxi for
Irish police, and incidentally for the multiple interactive motives of the
Draft Riots, and p. xix for 120 verified dead. Thomas Rose and James
Rodgers, afterword of the same, p. 261 for wider acceptance of a thousand
deaths. See Headley's account for remaining details except the alignment
of the New-York Tribune with the Republican party, which may be inferred
with pp. 102–3, and the state and development of firearms technology at
that time. James H. Trietsch, The Printer and the Prince: A Study of the
Influence of Horace Greeley Upon Abraham Lincoln as Candidate and
President (New York: Exposition Press, c1955), pp. 7, 290 for the affinity
of editor-proprietor Horace Greeley and his New York Tribune with the
Republican Party, p. 19 for the supply of hand grenades kept at the
Tribune building as a precaution against draft rioters, and pp. 236–8 for,
curiously enough, the criticism of the draft by Greeley in the summer of
1863.
14 para: struggles
Hamill, introduction of Headley, Great Riots (2004), p. xxi for mob fury
of the 1863 Draft Riots over marriages between black men and Irish
women. Emma Jones Lapsansky, ‘“Since They Got Those Separate
Churches”: Afro-Americans and Racism in Jacksonian Philadelphia’ in
African Americans in Pennsylvania: Shifting Historical Perspectives, eds.
Joe William Trotter Jr. and Eric Ledell Smith (University Park: The Penn-
sylvania State University Press and The Pennsylvania Historical and
Museum Commission, c1997), pp. 95 for the comparative affluence of
Philadelphia's black community in the 1830s or so with quite unequal
distribution of wealth, and pp. 101–3 for the situation in Philadelphia in
the late 1920s of a select black elite with affluence eclipsing that many
whites as inspiration for the popularization of cartoon caricature depicting
wealthy blacks. Theodore Hershberg, “Free Blacks in Antebellum
Philadelphia: A Study of Ex-Slaves, Freeborn, and Socioeconomic
Decline” in African Americans (c1997), p. 127 for a tiny fraction of blacks
in Philadelphia in the 1830s and 1840s possessing much more wealth than
their fellow blacks. Carl E. Prince, ‘The Great “Riot Year”: Jacksonian
Democracy and Patterns of Violence in 1834,’ Journal of the Early
Republic, Vol. 5, No.1 (Spring 1985), p. 14 for middle class blacks of
Philadelphia in 1834, and p. 15 for the ‘marriage of a well-to-do black
businessman to a white woman’ as the trigger for an economically moti-
vated race riot in October 1834 in Columbia, Pennsylvania. Walter Licht,
Industrializing America, p. 50 verifies no strike in colonial America before
1768. An earlier rebellion is discussed next.
14 para: fishermen
Headley, Great Riots (2004), pp. 8–9 for the African slave revolt of
1712, pp. 6–22 for the African slave revolt of 1741, and pp. 15–6 about the
two male corpses.
15 para: pandemonium
Headley, Great Riots (2004), pp. 6–22 for rebellions, and pp. 40–9 for
election riots. The arsenal is held by ‘peaceably inclined citizens’ against
marauding Whigs according to Myers, Tammany, p. 92 citing Documents
of the Board of Alderman, 1839, No. 29. Myers on pp. 109–11 and 120–1
describes how Tammany regained control of the city in the elections of
spring 1839 after losing control in 1837, suggestive of a Tammany take on
the election riots of 1834. The Baltimore paper Niles' Weekly Register
dated 19 April 1834 on page 115 has the Whigs holding the arsenal ‘until
the arrival of the mayor and his posse.’
15 para: brighter
Contemporary writer Headley, being nativist as it served being pro-
establishment, illustrates the politics of the day in his portrayal of this
event. The effected neighborhood was ‘the home of desperadoes and
depraved beings of every kind.’ With convenient assignment of reproach
and omission of race, he explained, “It somehow got round that they had
resolved to attack every house not illuminated with candles *x*x*. Five
houses of ill-fame were gutted *x*x*.” Headley, Great Riots (2004), p. 61
for quotes here, and pp. 54–62 for anti-abolition riots.
15 para: schools
John Runcie, ‘“Hunting the Nigs” in Philadelphia: The Race Riot of
August 1834,’ Pennsylvania History, Vol. 39, No. 2 (April 1972), pp. 194,
196 about rioters being largely Irish immigrants, p. 190 about the riots of
three nights with the result of at least one dead black person and the
damage and looting of two churches and many homes, and start or field of
the property damage being in the Negro ghetto (but the poverty was
uneven at most; note the following three considerations), p. 196 about
silver spoons stolen from blacks (who possibly acquired them by
purchase), p. 209 about the targeting of Negro churches and the homes of
affluent Negroes, p. 215 about targeted affluent blacks, p. 209 about the
use of candles in the windows as in New York (but I conclude otherwise,
though I would have liked to check for the distinction in the source refer-
enced by fnote 88: Commercial Herald, 15 August 1834), and p. 197 about
the citizens' committee finding the major reason for the riots was competi-
tion between blacks and whites for certain (better) jobs, p. 197, fnote 40
for a source of the citizens' report identified as Hazard's Register, XIV (27
September 1834), p. 201, and p. 199 about Irish immigrants often consid-
ered inferior to blacks by native white Americans, p. 213 about the annoy-
ance of noise from Negro churches, and p. 216 about the oppressively hot
weather that could only have exasperated the situation. Carl E. Prince,
‘The Great “Riot Year”: Jacksonian Democracy and Patterns of Violence
in 1834,’ Journal of the Early Republic, Vol. 5, No.1 (Spring 1985), p. 14
about the destruction of houses, not in a ghetto, owned by middle-class
blacks who lived in mixed neighborhoods with whites who extended
lamps from their windows to distinguish themselves to the rioters—citing
the Niles' Weekly Register, 23 August 1834, p. 426 for the extended lamps
but see the next item for the correct page number—and about the citizens
committee that determined causes of the riots to be preferential hiring of
blacks and the sometimes forcible rescue of fugitive slaves under arrest,
and about the attention of rioters directed primarily at black property.
Niles' Weekly Register, Vol. 46, No. 1,196 (23 August 1834), p. 435, col. 2
for the statement from an except of the Pennsylvanian, 15 August 1834
about the 2nd night of rioting: “The white residents in the district extended
a light from their windows and the houses thus designated were
respected.”, and p. 435, col. 2 and p. 436, col. 1 for an excerpt from the
Pennsylvanian, 16 August 1834 about the posse assembled on the 3rd
night by the city sheriff comprised his entire police force and several
hundred young men from militia and the turnout of the entire police forces
of Southward and Moyamensing (Districts). Lapsansky, “Since They Got
Those Separate Churches,” p. 93 for some 800 special constables and
militia, pp. 96, 99 about the upwardly mobile blacks of Philadelphia
comparing favorably to blacks elsewhere in an economic sense and the
richest 10 percent controlling 70 percent of the wealth. Edward Raymond
Turner, The Negro in Pennsylvania: Slavery–Servitude–Freedom, 1639–
1861 (New York: Negro Universities Press, 1969), p. 161 citing a report in
Hazard's Register, XIV, pp. 201–3 for the summary of the report by a
committee of citizens that property was deliberately destroyed to drive off
negroes because of negro labor, the shielding of negro criminals (fugitive
slaves who increase the labor force), and the noise and disorder of negro
churches deemed a nuisance. Niles' Weekly Register, Vol. 46, No. 1,197
(30 August 1834), p. 441, col. 1 found via Runcie, “Hunting,” p. 197 w/
fnote 41 for the quote with italic emphasis of source. Michael Feldberg,
The Philadelphia Riots of 1844: A Study of Ethnic Conflict (Westport,
Connecticut: Greenwood Press, c1975), p. ix for the latter riot description,
and pp. 78–9 for motive.
16 para: forgotten
Carl E. Prince, “Riot Year,” pp. 1–2, 18–19 about banner year, pp. 4, 11
for the term ‘politics-out-of-doors’, and pp. 17–18 about historical pattern
of tumult. Martin Luther King, Jr. led the Civil Rights Movement from its
inception in 1955 until his assassination in 1968 using Christian principles
and intellectual analysis. Resistant white zealotry expressed as lynchings
and beatings provoked a prevalence of the black variety in the mid-1960s
born of the black ghetto and black prison populations, and expressed by
riots and separatist agitation. The 1970s and 1980s saw employment
quotas for minorities and women dubbed ‘affirmative action’. The initial
goals of the Civil Rights Movement, in the late 1950s, were political liber-
ties that need not be economized in their distribution: desegregation and
voting rights. In the 1970s the focus shifted to freedoms necessarily econ-
omized and to be distributed based on equality of accumulation: freedoms
of prestige and prosperity. Martin Luther King, Jr., various speeches in
Clayborne Carson and Kris Shepard, eds., A Call to Conscience: The
Landmark Speeches of Dr. Martin Luther King, Jr., (Atlanta: IPM, c2001),
pp. 71, 85 for the phrase ‘content of their character’, within the context of
examples of introspective sophistication, p. 151 about the constructive
value the opinion of one's enemy may have about oneself, and pp. 186–7
about the critical importance of having both love and power.
Martin Luther King did not advocate that the American Dream be
bastardized. He advocated that the fitness of Americans for the American
Dream and the bastardy of Americans unfit for the American Dream be
gauged not by color of skin but by content of character. Feminist charity,
feminist compassion, feminist justice: these are the rites of unequal
women. Secular worship of chimerical feelings is the essence of femi-
nism, the dispensed exaltation of the broad made man, and the framework
for the second self-destruction of the West.
16 para: course
Fite, Conditions, pp. 183–9 about separating prices and wages during
the war, and p. 186 about seamstresses noting the New York Sun editions of
12 June and 21 September 1864. Daniel T. Rodgers, The Work Ethic in
Industrial America, 1850-1920 (Chicago: The University of Chicago
Press, c1978), p. 28 about unrequited hard work. Licht, Industrializing, p.
70 for the increasing Antebellum class gap.
16 para: tour
William B. Hesseltine, introduction of The Tragic Conflict: The Civil
War and Reconstruction, ed. Hesseltine (New York: George Braziller,
1962), p. 11 for figures leading to just over 2% of the total population
made dead combatants and for $4.475 billion. “Statistical Summary,
America's Major Wars” Web page from The United States Civil War
Center website at http://www.cwc.lsu.edu/other/stats/warcost.htm as
accessed 1 February 2007, compiled by Al Nofi, citing Table 2–23: “Prin-
cipal Wars in which the US Participated: US Military Personnel Serving
and Casualties,” prepared by Washington Headquarters Services, Direc-
torate for Information Operations and Reports, US Department of Defense,
for figures leading to 1.6% and for $5.20 billion. Charles R. Morris, The
Tycoons: How Andrew Carnegie, John D. Rockefeller, Jay Gould, and J. P.
Morgan Invented the American Supereconomy (New York: Time Books,
2005), p. 3 for route, and p. 6 for Pullman.
16 para: explained,
17 para: noses
Hesseltine, introduction of Tragic Conflict, p. 28 about Lincoln's use of
military force to control election results and the restraint Lincoln neverthe-
less was on the Radical Republicans until his assassination. “The Week,”
Nation, Vol 4, No. 95 (25 April 1867) p. 325, col. 1 for quotes, but I added
the letter ‘i’ to what was originally ‘villanies’.
17 para: it
“Is Labor a Curse,” Galaxy, Vol. 6, No. 4 (October 1868), pp. 539–41
for aversion to manual labor and tradesmen suitors, p. 540 for ‘good
society,’ and pp. 545–6 for variants, all relating to city life. Samuel
Osgood, “American Girls,” Ladies' Repository, Vol. 27, No. 3 (March
1867), p. 164, col. 2 for health and fertility, p. 165, col. 1 for ladies' phys-
ical aversion in city and country, pp. 165–6 for brides and wealth. “The
Family Circle,” Ladies' Repository, Vol. 27, No. 8 (April 1867), p. 499
about women eying women. Morris, Tycoons, pp. 184–5 about declining
birth rates due largely to later marriages and earlier female deaths.
18 para: Marx
Fite, Conditions, p. 204 about the frenetic 1860s. “The Labor Crisis,”
Nation, Vol. 4, No. 95 (25 April 1867) p. 334, col. 2 about unprecedented
labor activism in U.S. and Europe, and the int'l. assoc., p. 335, col. 1 about
eight hours and votes. George E. Barnett, “The Dominance of the
National Union in American Labor Organization,” Quarterly Journal of
Economics, Vol. 27, No. 3 (May 1913), pp. 456–8 for unprecedented
national activity. J. E. B., “Labor,” New-York Times, 22 August 1869, p. 1,
col. 2, bottom, about the 1869 convention of the National Labor Union in
Philadelphia, the first national labor convention to include blacks and
whites, men and women, Northerners and Southerners, found via Herman
D. Bloch, “Labor and the Negro 1866–1910,” Journal of Negro History,
Vol. 50, No. 3 (July 1965), p. 169. Allan Pinkerton, Strikers, Communists,
Tramps and Detectives (New York: G. W. Carleton & Co., 1878), pp. 81–2
for Karl Marx.
18 para: it
Bloch, “Labor,” pp. 183–4 about local exclusion. “What Labor Reform
Means,” Nation, Vol. 9, No. 230 (25 November 1869) p. 454, col. 2 for
attempt to incorporate a hereditary shoemakers' guild.
18 para: themselves
Licht, Industrializing, p. 52 for scrip circa 1830 in Philadelphia. David
A. Zonderman, Aspirations and Anxieties: New England Workers and the
Mechanized Factory System, 1815–1850 (New York: Oxford University
Press, 1992), pp. 172, 177–8 citing many sources about payment imposi-
tions, p. 173 likely citing Bruce Clouette and Matthew Roth, Briston,
Connecticut: A Bicentennial History, 1785-1985 (Bristol: Bristol Public
Library, 1984), pp. 67–8, 86–7 about payment in clocks and deduction of
uncharacterized rent. Fite, Conditions, pp. 199–200 about payment in
store orders during Civil War. Robert V. Bruce, 1877: Year of Violence
(Chicago: Ivan R. Dee, Inc., c1989); p. 16 citing labor publications about
scrip; p 16 citing Cigar Makers' Journal, May 1877 about cigars; pp. 16–7
citing Massachusetts Bureau of Statistics of Labor, Tenth Annual Report
(Boston, 1879) p. 124 about job dangers; and pp. 24–5 about lucrative rent
on poor citing Jacob A. Riis, How the Other Half Lives (New York, 1890),
pp. 11, 13—all in regard to 1870s. Edward N. Mott, Between the Ocean
and the Lakes: The Story of Erie (New York, 1901), pp. 437–8 about strike
for back pay in 1874, found via Bruce, p. 54. Fon W. Boardman, Jr.,
America and the Robber Barons, 1865–1913 (New York: Henry Z. Walck,
Inc., c1979), p. 16 about company rent and 1894 strike, and p. 112 about
miner's scrip and company housing in 1913.
19 para: years
Walter W. Price, We Have Recovered Before!: A Comparison of the
Present Depression with the Major Depressions of the Past Century, 1837
- 1857 - 1873 - 1893 (New York and London: Harper & Brothers, 1933), p
59 citing the Encyclopædia Britannica for government grants and loans,
and p. 60 about fraudulent billing. Bruce, 1877, p. 32 citing Edward Stan-
wood, A History of the Presidency (Boston, 1906), pp. 336, 344, 347, 350
and Solon J. Buck, The Agrarian Crusade (New Haven, 1920), pp. 19, 22-
23, 43, 47–50 and Charles Francis Adams, Railroads: Their Origin and
Problems (New York, 1878), pp. 128–129 about Crédit Mobilier scandal,
political aversion, crop prices, and Granger movement. Myers, Tammany,
pp. 238, 245 for Tweed ring. “The New-York Ring Suits,” New-York
Times, 29 June 1877, p. 2, col. 6 about Tweed ring. “The Credit Mobilier
Slander,” New-York Times, 16 September 1872, p. 5, col. 1 about the
breaking Crédit Mobilier scandal. “Tweed's Young Partner,” New-York
Times, 7 October 1885, p. 1 ,cols. 1–3.
19 para: out
Meade Minnigerode, Certain Rich Men; Stephen Girard, John Jacob
Astor, Jay Cooke, Daniel Drew, Cornelius Vanderbilt, Jay Gould, Jim Fisk
(Freeport, New York: Books for Libraries Press, 1970), pp. 73–5 about
bank failures, cordon, and advances to Northern Pacific. Henrietta M.
Larson, Jay Cooke, Private Banker (Cambridge, Massachusetts: Harvard
University Press, 1936), p. 409 about characterization as ‘foremost Amer-
ican banking-house’ in New York Tribune, 19 Sept. 1873. Price, We Have,

p. 60 for quote, p. 61 about excess and speculation, and pp. 64–5 about the
panic of 1873 followed by five years of severe depression with recovery
first evident in 1878 and well-defined by the middle of 1879.
19 para: turn
Boardman, America, p. 18 about depression details. Bruce, 1877, pp.
40–2, 52–3, 64 for pooling, pricing, and wage cuts, pp. 44, 46–7, 65, and
130 for wage scantness and wage rates, with various cited sources. Pay for
those not conductors or engineers—brakemen, firemen, switchmen,
flagmen, and general laborers—working full time without employer
deductions topped out around $550 annually, but take-home pay of $100–
$200 was neither unusual nor least. “Suburban Homes,” Appleton's
Journal, Vol. 3, No. 58 (7 May 1870), p. 519 infers $1,000 as the annual
family income in 1870 at the threshold of suburban (middle-class) means,
affording a ‘respectable cottage’—the earnings limit of a conductor or
engineer, theoretically.
20 para: restraint, struggle,
21 para: challenged
The account of the 1877 strike generally follows Bruce, 1877. Bruce,
1877; p. 11 citing various sources for an array of public officials; p. 92 for
greatest strike; p. 108 citing various sources for 104 locomotives and 24
confirmed deaths in Pittsburgh, one of the more deadly locales; p. 130
citing New-York Times, 22 July 1877 about rent on Erie land; p. 173 citing
Carroll D. Wright, The Battles of Labor (Philadelphia, 1906), p. 122 about
agents; p. 263 about black railroaders; and p. 300 citing Railway World, VI
(31 January 1880), p. 111 and (2 October 1880), pp. 941–2 and Hyman
Kuritz, “The Pennsylvania State Government and Labor Controls from
1865 to 1922” (unpublished Ph.D. dissertation, Columbia University,
1953), p. 83 about liabilities. Paul Avrich, The Haymarket Tragedy
(Princeton, N. J.: Princeton University Press, c1984), p. 28 for the ‘rifle
diet’ recommended by Thomas A. Scott, president of the Pennsylvania
Central, p. 463, endnote 7 for the original source of the Scott quote identi-
fied as the New York Times issue of 26 July 1877, quoted in Samuel Yellen,
American Labor Struggles, 1877–1934 (New York: Harcourt, Brace &
Co., 1936), pp. 21–2 and citing additionally (cf. p. 462, endnote 7) Lillian
Symes and Travers Clement, Rebel America: The Story of Social Revolt in
the United States (New York: Harper & Row, 1934), p. 147—however,
based on my examination of a microfilm copy of that New-York Times
issue, it is not a source of Scott's quote—and back to Avrich, p. 26 about
over 100 workmen killed in the strike of 1877. Henry David, The History
of the Haymarket Affair: A Study in the American Social-Revolutionary
and Labor Movements, 2nd ed. (New York: Russell & Russell, c1958), p.
123 for the quote itself and its attribution to Scott during the 1877 strike by
Chicagoan socialists-anarchists circa 1886, and p. 131, endnote 59 for the
elaboration of Scott as Thomas A. Scott, president of the Pennsylvania R.
R. Marvin W. Schlegel, Ruler of the Reading: The Life of Franklin B.
Gowen, 1836-1889 (Harrisburg, Pennsylvania: Archives Publishing
Company of Pennsylvania, Inc., 1947), pp. 180–1 about state lobbying
struggle and historically related Document No. 32 in Pennsylvania

Legislative Documents, 1879, V. Terence V. Powderly, “The Organization
of Labor,” North American Review, Vol. 135, No. 309 (August 1882), p.
123 for count of 123 locomotives and taxes. Terence V. Powderly, Thirty
Years of Labor, 1859–1889 (New York: Augustus M. Kelley, 1967), pp.
132, 142 about an array of clergy. “Workingmen and the Churches,”
Nation, Vol. 40, No. 1031 (2 April 1885), pp. 274–5 for belated record of
church bias favoring capitalists and affluent classes. Henry George,
“Labor in Pennsylvania,” North American Review, Vol. 143, No. 358
(September 1886), pp. 270–1 about slate-pickers. Details of colliery labor
conditions preceding the Great Strike are not copious but may be extrapo-
lated from later accounts when conditions would likely not be any worse.
For example, a corroborating and humanizing composite of conditions
largely sampled from the four decades following the Great Strike is given
by Susan Campbell Bartoletti, Growing Up in Coal Country (Boston:
Houghton Mifflin Company, 1996). A detailed survey of the moral decay
preceding the Great Strike of 1877 is given by Nevins, Emergence, chapter
7, “The Moral Collapse in Government and Business (1865–1873)” pp.
178–202.
21 para: Labor
Powderly, Thirty, pp. 72–5 about inception following the demise of the
tailors' association and for the quote.
21 para: Pittsburgh
Powderly, Thirty, pp. 77–8 about sojourners, pp. 78, 136 about
thoughtful leadership, p. 117 about movement, p. 125 about Reading, and
pp. 128–33 about General Assembly.
22 para: Commune
Pinkerton, Strikers, p. ix for warning, p. x for workingman's niche, pp.
29-30 about tramps, p. 79 about International, and p. 88 about Knights of
Labor.
22 para: unscrupulous
F. P. Dewees, Molly Maguires: The Origin, Growth, and Character of
the Organization (Philadelphia: J. B. Lippincott & Co., 1877; and also
reprints with the same paginal layout, New York: Burt Franklin, 1969 and
1974), pp. 23–5 for labor-class Irish-Catholics, pp. 30, 38, 46 for start of
1862, pp. 230, 240, 281–2 for end of 1875, pp. 28–9, 31 about threats and
beatings to improve work-related circumstances, p. 33 for murder, pp.
105–6 for the beatings, arsons, and murders, typically directed at bosses
and superintendents of collieries, pp. 48–9, 56–8 for otherwise exercising
authority, pp. 32–3 about government corruptions, pp. 33–4 about
distressed selling and potentials of monopoly, p. 30 for phrase ‘Satanic
power’, and p. 109 for the quote referencing Tweed.
22 para: else
Dewees, Molly, p. 69 about Gowen's professional status, p. 73 for two
directives of 1873 and pp. 69–71 about paragraph's remainder.
23 para: crime
Dewees, Molly, pp. 78–9 about Irish-Catholic agent James McParlan
born in 1844, p. 83 about reporting for assignment October 1873 in
Philadelphia, p. 84 about assuming the name James McKenna, p. 94 about
initiation, pp. 84, 91 to delimit two years, pp. 252–4, 349 about rumors,
Father O'Connor's denunciation, and the pastoral letter, p. 272 about
O'Connor's regard, and p. 274 about retiring role. James Ford Rhodes,
“The Molly Maguires in the Anthracite Region of Pennsylvania,” Amer-
ican Historical Review, Vol. 15, No. 3 (April 1910), p. 550 for 29 years
old.
23 para: considering
Dewees, Molly, pp. 284, 292, 295–6 about Gowen, pp. 284, 289 about
McParlan, p. 357 for quote but ‘dare’ is originally within double quotes,
and pp. 350–1 about all death sentences not then yet executed. The title
page of Dewees, Molly (1877) identifies the author as a member of the
Schuylkill County Bar; the reprints of 1969 and 1974 do not. Rhodes,
Molly, p. 560 about 19 hangings. J. Walter Coleman, The Molly Maguire
Riots: Industrial Conflict in The Pennsylvania Coal Region (Richmond,
Virginia: Richmond-Garrett and Massie, 1936), pp. 162–7 about 10 hang-
ings in Pottsville, Schuylkill, 6 in Mauch Chunk, Carbon County, and 3 in
Bloomsburg, Columbia County. Schlegel, Ruler, p. 139 about Gowen and
McParlan, p. 30 about ‘Francis P. Dewees, a lawyer residing in Pottsville,’
pp. 142–9 about the final execution in Sunbury, County unspecified, after
the 7 executions in Pottsville, Schuylkill County, 7 in Mauch Chunk,
Carbon County, 3 in Columbia County, Bloomsburg not stated place but
implied as trial location, the execution on 11 June 1878 of one Dennis
Donnelly, jailed and by implication hung in Pottsville, and another on 18
December 1878 of one Jack Kehoe, jailed and by implication hung in
Pottsville, found via Bruce, 1877, p 39. A map was referenced to deter-
mine Sunbury is in Northumberland County. Coleman and Schlegel
present conflicting accounts. Coleman has 19 executions. Schegel has a
20th hanging of Peter McManus in Sunbury on 9 October 1879. Cole-
man's index does not have McManus or Sunbury. Coleman has executions
of James O'Donnell and Charles McAllister within a year of 21 June 1877
at Pottsville. Schlegel instead has it that Donnelly was executed (within
Coleman's year) on 11 June 1878 with no stated location, though Donnelly
is placed in the Pottsville jail implying the Pottsville gallows, and he
further has it that Martin Bergen was executed (after Coleman's year) on
16 January 1879 at Pottsville. Schlegel has it that O'Donnell was
convicted of second degree murder and thus not executed. Coleman has
the execution of Thomas Fisher at Pottsville within a year of 21 June 1877,
and Schlegel has execution of Tom Fisher but at Mauch Chunk (within
Coleman's year) on 28 March 1878. The name Martin Bergen, found in
Schlegel as one of the hanging deaths, is not listed in Coleman's index.
The name of James Bergen is in Coleman's index referring to page 46 only.
On that page James Bergen is a murder victim not a suspect. Following
the choice of citation by Bruce, 1877, p 39; I lean toward Schlegel's
account of the executions.
24 para: publicly
David F. Selvin, Champions of Labor (New York: Abelard-Schuman,
c1967), pp. 33, 35 about blacklist and hunger, p. 35 about the name Noble
and Holy Order of the Knights of Labor used in 1874, and pp. 38, 47 about
Powderly's tenure. Powderly, Thirty (1967), a reprint of the 1890 edition
that revised and corrected the original 1889 edition, pp. 79, 133–5, 302–3,
329 about Terence's account, noting pp. 134, 329 about the full name and
p. 133 for his quote, originally an independent clause not a complete
sentence.
24 para: ton
“The Coal Ring,” New-York Times, 8 March 1873, p. 9, col. 7. The
hyphen is omitted from the paper's modern name.
25 para: principles
Schlegel, Ruler, pp. 15–6 to place overproduction after the Civil War,
pp. 32, 37 about overproduction and encouragement, p. 33 about Gowen's
vision, p. 150 about national support, and pp. 151–2 via Bruce, 1877, p. 39
about local subjugation. Henry George, “Labor in Pennsylvania,” pp.
272–4 about private police and coal estates.
25 para: one
Powderly, Thirty, p. 329 about women, p. 303 about Biddy-Maguires
quote, pp. 347–9 about black delegate, and p. 350 about Southern laborer
quote. Bloch, “Labor,” pp. 175–6, footnote 67, citing Knights of Labor
Proceedings of the General Assembly, 1885 about many black members.
25 para: point
Powderly, Thirty, p. 218 for exclusion, and p. 340 for the year 1888.
Edgar Holden, “A Chapter on Coolie Trade,” Harper's New Monthly
Magazine, Vol. 29, No. 169 (June 1864), p. 2, col. 1 about the term
‘coolie’.
26 para: A.D.
Douglas Alan Fisher, The Epic of Steel (New York: Harper & Row,
c1963), pp. 2–3 citing J. Newton Friend, Iron in Antiquity (London: 1926),
p. 30 and R. J. Forbes, Metallurgy in Antiquity, (Leyden, Netherlands,
1950), p. 23 about the discovery of metallurgy, attributed by experts most
often to the Caucasus Mountains, pp. 16–7 about early smiths, wrought
iron, and cast iron, pp. 21–2 about wootz steel and swords of Damascus,
pp. 17–8 citing letters to the author from Fuji Iron and Steel Company,
Ltd. about Japanese steel and swords but without an ascribed time frame,
pp. 19, 23–4 citing Steelways, American Iron and Steel Institute (New
York: November 1946) and New York Times, 30 January 1961 and letter to
the author dated 24 February 1961 about Spartans and Romans, pp. 18–9
about difficulties, chance, and carburized iron, pp. 12, 20 about Chinese
specialization in cast iron evidently sometime 600–100 B.C., pp. 19–20
about general preference of wrought iron, p. 17 about bellows from eastern
or southern Asia, and p. 23 about ancient steel in ‘some Eastern countries.’
Leon Kapp, Hiroko Kapp, and Yoshindo Yoshihara, The Craft of the
Japanese Sword (Tokyo: Kodansha International Ltd., 1987), p. 22 about
the golden age of Japanese sword making, when the low-carbon steel core
was introduced, occurring in the Kamakura period 1185–1333. Geoffrey
Bibby, “Bronze Age,” Encyclopedia Americana: International Edition,
1999 ed., vol. 4, p. 602, col. 2 for the origin of smelting between 4000 and
3500 B.C., likely within a mountainous area of the Middle East. The
aforementioned source shall be abbreviated as EA–99. Jacques Gernet, A
History of Chinese Civilization, trans. J. R. Foster (Cambridge: Cambridge
University Press, c1982) p. 69 about Chinese specializing in cast iron by
400 B.C., the appearance of piston-driven bellows in China dated to Han
rule, thus after casting became a specialty (see next), and Chinese steel by
200 A.D. The original Gernet work is Le Monde chinois (1972). Charles
O. Hucker, China's Imperial Past: An Introduction to Chinese History and
Culture (Stanford, California: Stanford University Press, 1975), pp. 434–5
about reign of the Western Han dynasty 202 B.C. to 9 A.D. and of the
Eastern Han dynasty 25–220.
26 para: 1267
Hucker, China's, pp. 434–5 is the source to periods of dynastic reign
noted in this account of Chinese history. Hucker, China's, p. 192 about
Tang technology and the roads and canals, and pp. 147–8 about period of
fragmentation and strife. Gernet-Foster, History, pp. 115, 238–9 about
roads and canals, and p. 311 about gunpowder.
27 para: history
Hucker, China's, p. 354 about copper for coins, pp. 354, 410 about
porcelain, p. 354 about invention of paper money and banking, p. 204
about Daoist alchemy and compass, pp. 342, 356 about greatest civiliza-
tion and economy, p. 291 about tribute from Africa, and p. 355 about
conundrum. Gernet-Foster, History, p. 325 about paper money's develop-
ment and circulation, p. 328 about sailing technology and use of compass,
p. 326 about naval supremacy, and pp. 573–4 about conundrum and an
explanation.
27 para: nation
Hucker, China's, p. 283 about federation united under Chingis Khan,
his sea-to-sea dominion, and his conception of the greatest joy following
the natural summarization by Hucker: “He proudly proclaimed there was
no greater joy than massacring one's enemies, taking their horses and
cattle, and ravishing their women.”, p. 285 about dynastic start via
grandson Kubilai, p. 286 about administrative engagement. Paul Ratch-
nevsky, Genghis Khan, His Life and Legacy, trans. Thomas Nivison
Haining (Oxford: Blackwell, 1993), p. 153 about Chingis' conception of
greatest pleasure according to a translation of words attributed to Chingis.
Gernet-Foster, History, pp. 347–8 about the Mongols role in future
primacy of European civilization at the expense of the two leading
contemporary civilizations, and with pp. 71, 287–8, 327–8 about European
adoption of Chinese methods, p. 716 for spelling of Kublai Khan, pp. 368–
9 about caste system and erudite Muslims, p. 365 about a small minority of
Mongols within conquered territories including China and administrative
engagement. Richard Fletcher, Moorish Spain (Berkeley: University of
California Press, 1993), pp. 134, 147–156, 173–4 about scientific transfer
of science and philosophy from Islamic to Christian civilizations. John

Larner, Marco Polo and the Discovery of the World (New Haven: Yale
University Press, c1999), p. 41 about administrative role.
28 para: seminal
Gernet-Foster, History, pp. 356–9 about Chin empire, pp. 352–4 about
Laio empire, and pp. 368–9 about caste system and erudite Muslims.
Hucker, China's, pp. 275, 278 about rueful alliances and dwarfing
commerce, p. 286 about paper money and coal. “Polo, Marco,” EA–99,
vol. 22, pp. 359–60 for the first journey by Marco's father and uncle,
resulting in Kublai's request to the Pope and the two learned men sent in
response who abandoned the expedition, for the second journey of the
Polo brothers with Marco, Marco's missions for Kublai throughout China
but exclusive of Marco's conveyance of anecdotes, Marco's dictation to
Rustichello in prison but exclusive of Rustichello's link with Pisa, the lost
original text, the derivatives being not exactly like the original manuscript
copies, and Marco polo's book not taken seriously at the time except by a
few scholars and explorers. John Larner, Marco Polo and the Discovery
of the World (New Haven: Yale University Press, c1999), pp. 34, 40–1
about 100 learned men, pp. 41–2 about the importance of Marco's anec-
dotes to Khan, according to one or more versions of the book, and p. 47
about Rustichello being of Pisa. John Davis Buddhue, “The Origin of Our
Numerals,” Scientific Monthly, Vol. 52, No. 3 (March 1941), pp. 265–7
about Arabic numerals. David Brion Davis, Inhuman Bondage: The Rise
and Fall of Slavery in the New World (New York: Oxford University Press,
2006), pp. 63–4, 79 about Curse of Ham.
One might suggest foreign policy, often covert, and economic policy
toward the Middle East, implemented by the United States and other
outsiders for more than fifty years past, with propensities no longer
masked by the Cold War, has symbiotically fueled the rise of the Islamic
world as it was to international standing along with Big Brother. An
excerpt from Davis, Bondage, p. 63, taken after the introductory phase ‘On
the other hand,’ and itself quoting a phrase from Parliamentary Debates
(Lords), 5th ser., vol. 225 (1960), cols. 335, 341–3, is suggestive of some
important dot connecting, so to speak:
Arab antiblack racism has been flagrantly revealed in recent years in
the persecution and enslavement of black Africans in southern
Sudan, along with their genocide in Darfur, which was long a major
export center of the Arab trans-Saharan slave trade as well as a site
for farms that bred black slaves for sale like cattle or sheep. As late
as 1960, Lord Shackleton reported to the House of Lords that African
Muslims on pilgrimages to Mecca still sold slaves upon arrival,
“using them as living traveller's cheques.”
Louis B. Wright, Gold, Glory, and the Gospel: The Adventurous Lives
and Times of the Renaissance Explorers (New York: Atheneum, 1970), p.
13 about Christians ending Moorish rule in Iberia in 1492 and the threat of
Ottoman Turks.
29 para: India
Wright, Gold, Glory, Gospel, pp. 12–3 about the Portuguese pincer
movement intended to defeat Islam ‘once and for all’ and about the mili-
tant unity advocated by Iberian Christians, p. xi about motive of spiritual
and material enrichment, pp. 11, 22 about Henry the Navigator as grand
master of the Order of Christ and the person in control of the associated
funds, p. 12 about an exploratory voyage sent by Prince Henry in 1418
according to historian Azurara, p. 6 for Portuguese sails in the early 15th
century being of canvas, and p. 87 about each sail of the fleet da Gama led
to Portugal's first trading voyage with India bearing a red cross of the
Order of Christ. David Nicholas, The Transformation of Europe 1300–
1600 (London: Arnold, 1999), pp.36–7 about Aragon and Castile occupied
by pressing strife while Portugal explored the Atlantic. Joseph F.
O'Callaghan, “John I,” EA–99, v. 16, p. 112 about the thwarted invasion of
and later peace with Castile. Robert G. Albion, “Exploration and
Discovery,” EA–99, vol. 10, p. 779, col. 1 about the Portuguese King
making Henry the head of the Order of Christ, and Henry having the sails
of his caravels bear the cross of the Order of Christ, color not specified.
Henry H. Hart, Sea Road to the Indies: An Account of the Voyages and
Exploits of the Portuguese Navigators, Together with the Life and Times of
Dom Vasco da Gama, Capitão-mór, Viceroy of India and Count of
Vidigueira (Westport, Connecticut: Greenwood Press, 1971), p. 12 about
exploratory voyages sent by Prince Henry in 1412 or 1415. Edwin Tunis,
“Caravel,” EA–99, vol. 5, p. 619 about caravels being small and rounded.
J. A. Furer, “Navies, Historical Development of,” EA–99, vol. 20, p. 21
about caravels being round and ‘the first really weatherly’ ships. Garrett
Mattingly, “Fifteenth Century: 1. Europe,” EA–99, vol. 11, p. 178 about
the new Portuguese ships being safer and cheaper than previous European
cargo ships. Frank A. Salamone, “Africa,” The Historical Encyclopedia of
World Slavery, ed. Junius P. Rodriguez (Santa Barbara, California: ABC-
CLIO, c1997), vol. 1, p. 13, col. 1 about the caravel being small, less
expensive, and very seaworthy. The aforementioned source shall be abbre-
viated as HEWS. C. Raymond Beazley, Prince Henry the Navigator, The
Hero of Portugal and of Modern Discovery, 1394–1460 A.D., 2nd ed.,
‘With an Account of Geographical Progress Throughout the Middle Ages
as the Preparation for his Work’, (New York: Barnes & Noble, Inc., 1968,
or 1967 in the United States only via a much earlier printing), pp. 270 and
285 about the white sails of the ships under the aegis of Henry the Naviga-
tor. Frances Gardiner Davenport, ed., European Treaties bearing on the
History of the United States and its Dependencies to 1648 (Washington, D.
C.: Carnegie Institute of Washington, 1917), pp. 10–1 about the first slaves
and gold-dust from beyond Cape Bojador taken to Portugal in 1441 and
Castile as a rival to Portugal in Guinea trade by 1454, and pp. 12, 22 about
the papal bull Romanus Pontifex.
30 para: line
Mercedes Gaibrois De Ballesteros, “Visigoths, Muslims, and Christian
Reconquest” section of “Spain: 7. History,” EA–99,.vol. 25, p. 412, col. 2
about years of marriage and reigns of Isabella I of Castile and Ferdinand II
of Aragón, p. 413, col. 1 about the capture of Granada, city or kingdom not
specified, on 2 January 1492, and p. 410, col. 2 about the Muslim invasion
of Iberia begun 711. Garrett Mattingly, “Fifteenth Century: 1. Europe,”
EA–99, p. 179, col. 1 about the dynastic union of 1479. Nicholas, Trans-
formation, pp. 170–1 about marriage in 1469, p. 247 about the limits to the
unification by matrimony, deducibly occurring in 1479 on John II's death.
Fletcher, Moorish Spain, p. 165 about the ceremony in the city Granada
with a transfer of keys to the monarchs Fernando and Isabel and the
witness of it by Christopher Columbus who was seeking sponsorship for
his voyage. Edward Malefakis, “Portugal: 4. History,” EA–99, vol. 22, p.
440 about Portuguese victory at Algarve in 1249, and p. 441, col. 2 about
the accidental discovery of Brazil by Pedro Cabral in 1500. Wright, Gold,
Glory, Gospel, pp. 68–70 about the Santa María, Niña, and Pinta setting
sail from Palos and Spain ousting Jews on 3 August 1492, pp. 90–3 about
da Gama's penchant for using force and hostilities of the voyage, pp. 87,
95–6 about da Gama's round trip 1497–1499, p. 96 about casualties of da
Gama's inaugural trip to India, p. 88 about da Gama's new route to the
Cape of Good Hope, and pp. 101–3 about the discovery of Brazil by Pedro
Álvares Cabral either by accident or design. The lack of a Jew aboard
Columbus' fleet has been assumed based on the prevailing politics of Spain
and the lack of prominent, widespread indication to the contrary from the
historical literature as would be expected. William D. Phillips, Jr. and
Carla Rahn Phillips, The Worlds of Christopher Columbus (Cambridge:
Cambridge University Press, 1992), pp. xi–xii about names such as Cristo-
foro Colombo, pp. 153–5 about the first contact of Columbus with people
of New World on 12 October 1492, p. 157 about Columbus' conviction the
first discovered land was an island west of his intended landfall at
Cipango, known as Japan today, and pp. 160, 169 about Columbus identi-
fying the natives as Indians. Davenport, European Treaties, pp. 56, 61,
63–4, 68 about the bulls Inter Caetera and Eximiae Devotionis both dated,
yes, 3 May 1493, pp. 71, 75–8 about the bull Inter Caetera dated 4 May
1493, pp. 84–5, 95 about the terms and eventful dates of the Treaty of
Tordesillas, and pp. 99–100 for the plenipotentiary signing of the Treaty of
Tordesillas. Robert P. Beckinsale, “Azores,” EA–99, vol. 2, p. 894, col. 1
about the southeast Azores being located about 870 miles west of Lisbon.
Hart, Sea Road, p. vii, unnumbered footnote about the surname of Vasco
da Gama being Gama, not da Gama, and p. 128 about Gama's new route to
the Cape of Good Hope. Albion, “Exploration and Discovery,” EA–99,
vol. 10, p. 779, col. 2 about da Gama's new route to the Cape of Good
Hope. Charles E. Nowell, “America,” EA–99, vol. 1, p. 672, col. 1 about
the discovery of Brazil by Pedro Álvares Cabral on the way to India, either
by accident or design, and about the discovered land being on the east of
the Tordesillas line. Brazil of today is mostly west of the line. J. H.
Elliott, Empires of the Atlantic World: Britain and Spain in America,
1492–1830 (New Haven: Yale University Press, c2006), p. 124 has a map
of Spanish America and the Tordesillas line.
30 para: Al,
31 para: Africa, well,
32 para: hazard, pedestal
Wilton Marion Krogman, “Negroid Racial Group,” EA–99, vol. 20, p.
78, col. 1 about the three traditional races and the geographical dispersion
of Negroids encompassed by and likely indigenous to sub-Saharan Africa.
Ashley Montagu, “Caucasoid,” EA–99, vol. 6, p. 85 about the distribution
and subdivisions of Caucasians. Clarence J. Goodnight and Marie L.
Goodnight, “Biological Environment,” in “World,” EA–99, vol. 29, p. 194,
col. 2 about the three main races. Because indigenity is time dependent,
racial distributions must be reasoned to have prevailed at some ancient
time not long before human mobility removed regional constraints from
human reproduction. C. Loring Brace, “Race: 1. History of the Concept of
Race,” EA–99, vol. 23, p. 116, col. 1 about race as a figment of imagina-
tion and as ‘the cause of more misunderstanding and human suffering than
anything else that can be associated with a single word in any language.’
Perhaps there is a bigger correlation between miscommunication and
suffering than there is between reaping and sowing. Perhaps human
suffering is always unnatural. Virtual living is so much better. “Race: 2.
Contemporary Views of Human Variation,” EA–99, vol. 23, pp. 121–2, col.
2 about the percentage of genetic code involved with human variation that
cannot be eliminated from racial consequence, roughly 8%–10%, being so
scant as to make race biologically null just like the ‘outward manifesta-
tions’ that aren't really there—perhaps assuming gene egalitarianism,
ribbons for ninth place, and a misunderstanding with sicklemia. Sicklemia
is hereditary and effects primarily Negroids according to my neo-con
dictionary. Alfred W. Crosby, “United States: 23. Early Man in America,”
EA–99, vol.27, p. 686, col. 1 and p. 687, col. 2 about the separation of
American Indians from Orientals by migration across the former Bering
land bridge. The ‘Viking’ reference alludes to the legend of Leif Ericson.
As seen in video clips shown on television, Al Sharpton once spouted
that blacks were building pyramids while whites were living in caves. If
my memory and the television media are correct, his quip about caves and
pyramids was during a protest aimed at Freddy's Fashion Mart. If so, it
would have occurred not long before the shooting-arson there on 8
December 1995, perpetrated by a black man who apparently allowed
several blacks to escape unharmed, as may be supposed from the coverage
in the New York Times, e.g. Robert D. McFadden, “Guiliani and Bratton
See Racism in Harlem Fire,” 10 December 1995 issue, p. 1, col. 3. Al
Sharpton, presented as a credible television pundit of late, was then appar-
ently more concerned about the Jewish tenant owning Freddy's Fashion
Mart than the predominantly black church United House of Prayer for All
People owning the building in question, utilizing the second floor, and
leasing the first floor and basement. The owner of Freddy's refused to
renew a sublease with the black owner of Record Shack, a business appar-
ently less profitable than Freddy's. In Essence, Vol. 27, No. 6 (October
1996), Al Sharpton tells us: “So nearly 40 Black churches burning to the
ground within the past two years is the most satanic thing I've ever
witnessed.” There also was the Crown Heights riot of 1991 in Brooklyn.
On the Internet you can find the spellings ‘Freddy's’ and ‘Freddie's’, but Al
goes by the former in his book Al on America. With my limited resources
including time I have been unable to find a truly comprehensive account
on the Harlem massacre, and it seems there is not one prominently avail-
able. There may be a book opportunity for some politically incorrect
someone.
Roland Oliver, ed., The Cambridge History of Africa, Volume 3 (of an 8
volume series), From c. 1050 to c. 1600 (Cambridge: Cambridge Univer-
sity Press, 1977), pp. 2, 232, 238, 240 about Caucasoids, indigenous
Berbers and transplanted Arabs, peopling Northern Africa and Negroids
indigenous to sub-Saharan Sudan and points south, p. 90 with pp. 2, 89,
about a bidirectional slave trade between white Egypt and black Mali, the
Mali people owning Turkish (white) and Ethiopian (black) slave-girls
(probably concubines), and Turkish eunuchs and boys (still convertible if
prepubescent), p. 384 about the existence of the Mali Kingdom in the 15th
century, pp. 447–8 for places importing black slaves, p. 229 about a
Portuguese report of Zimba warriors massacring and eating people on an
incursion taken in the 16th century, p. 240 about Arabs attributing canni-
balism to little-known, forest-dwelling Negroids, pp. 273–4 with pp. 2, 4
for Negroid distinction about human sacrifice associated with slavery
among the black, pagan Jukun, pp. 541–2 about the Imbangala of the
lower Kwanza valley initiating members with ritual cannibalism, pp. 90–1
about (white) Egyptians enslaving blacks, and p. 40 for the explanation:
The term mamlūk (lit. ‘owned’, ‘slave’) was applied chiefly to white
slaves, and gradually came to designate those who were acquired by
Muslim rulers to form the bulk of their standing armies. By the thir-
teenth century this institution had become an integral part of the
political and social system in many Muslim countries, the soldier-
slaves enjoying increasing powers. But only in Egypt, and in
Muslim India, did they cross the gulf that separated them from the
nominal kingship.
Richard Gray, ed., The Cambridge History of Africa, Volume 4 (of an 8
volume series), From c. 1600 to c. 1790 (Cambridge: Cambridge Univer-
sity Press, 1975), p 352 about potential exaggeration of Negroid canni-
balism by the Portuguese. Though exaggeration of Negroid cannibalism
by the Portuguese is virtually certain, so is the existence of socially orga-
nized Negroid cannibalism during the 15th century, something confirmed
by Muslim sources; the factuality and exaggeration of Carib cannibalism,
something only Spaniards and any engaged non-Spanish cohorts could
have initially witnessed as they were changing Caribbean society, are simi-
larly not mutually exclusive. Patrick Manning, Slavery and African Life:
Occidental, Oriental, and African Slave Trades (Cambridge: Cambridge
University Press, 1990), p. 29 for Christians and Muslims enslaving each
other in the 11th through 15th centuries during the crusades, and p. 30
about (Christian) Portuguese holding as slaves (it seems Muslim) Arabs
and Andalusians who were Spanish Muslims. Wright, Gold, Glory,
Gospel, pp. 26–7, 36–7 about Caucasoid Christians enslaving Caucasoid
Muslims, pp. 44–5 about Caucasoid Christians enslaving Negroid
Africans, pp. 31, 34 about Negroid Africans sacrificing and eating Negroid
Africans, and p. 79 about Caribs eating a Spanish friar and the native boys
and girls fattened for the pot—but compare with what follows. Phillips x
2, Worlds of Columbus, pp. 196–8 about the account regarded as credible,
part eyewitness and part secondhand, by Diego Alvarez Chanca describing
a man's neck cooking in a pot, the terminal use of castrated boys, the
fleeing castrated boys Chanca saw himself, and the Carib dislike for the
flesh of boys and women, p. 198 about the rape of Carribean women by
locals and outsiders alike, and p. 295, endnote 22 for a rejection of the idea
Carib cannibalism was a contrivance of Europeans. Robert A. Myers,
“Island Carib Cannibalism,” Nieuwe West-Indische Gids/New West Indian
Guide, Vol. 58, No. 3 & 4 (1984), pp. 147–84 is a thoughtful analysis
concluding that the evidence is too weak to assert Carib cannibalism, and
p. 176 for the suggested correlation, in this Dutch paper, of the scapegoat-
isms of Carib cannibals, witches, communists and homosexuals.
Salamone, “Africa,” HEWS, vol. 1, p. 13 about (black) African king-
doms with a long history of slavery within (black, sub-Saharan) Africa
itself and of a trans-Saharan slave trade with Arabs before the Portuguese
opened a direct extra-African trade via Africa's west coast (in the 15th
century). Joseph C. Miller, “Slave Trade: An Overview,” Macmillan
Encyclopedia of World Slavery, eds. Paul Finkelman and Joseph C. Miller
(New York: Simon & Schuster Macmillan, c1998), vol. 2, p. 828 about
Muslims enslaving European Christians bought from Italians. The afore-
mentioned source shall be abbreviated as MEWS. Bernard Lewis, Race
and Slavery in the Middle East: An Historical Enquiry (New York and
Oxford: Oxford University Press, 1990), pp. 56–9 about the enslavement
of black Africans by Muslims who were generally white, more or less, but
might at times be quite black, pp. 67–9 about powerful mamluks, white
warrior slaves, who insisted on privilege over black slaves within a society
governed by a (white) mamluk sultanate, and p. 81 about wealthy Muslim
pilgrims traveling with slaves of their own country used as traveler's
checks during the 20th century as had been practiced for some unspecified
period of time perhaps going back centuries. David Brion Davis, Inhuman
Bondage: The Rise and Fall of Slavery in the New World (New York:
Oxford University Press, 2006), pp. 63–4 about the same practice, by
(black) African Muslims, of using slaves as traveler's checks—the same
practice because cited is the same source (see p. 498 supra) except that
Lewis only specifies col. 335 and not cols. 341–3.
Xi Wang, “China,” MEWS, vol. 1, pp. 179–80 about China's limited use
of slaves, p. 179, col. 2 about Chinese enslaving Chinese, and p. 180, col.
2 about limits imposed by the Ming dynasty that reigned during the 15th
century. Ratchnevsky-Haining, Genghis Khan, p. 113 for a mention of
Chinese culinary cannibalism. Key Ray Chong, a book review, China
Quarterly, No. 128 (December 1991), p. 836 about the Chinese history and
culture of cannibalism associated with the belief that eating the organs of
‘young people’ infused immortality. Nigel Worden and Kerry Ward,
“Slave Trade: Southeast Asia,” MEWS, vol. 2, pp. 849–50 about
widespread slavery in Southeast Asia having obtaining slaves from natives
and from Madagascar and East Africa by Bengali traders. Marvin Harris,
Cannibals and Kings: The Origins of Cultures (New York: Random
House, c1977), p. 113 for the small-scale cannibalism of prisoners of war
by hundreds of pre-state societies from sub-Saharan Africa to Oceania as

recently as 50 to 100 years ago (but note a copyright date of 1977, which
has been used to determine publication circa 1977 or c1977), pp. 108–10
for the food processing of human sacrifices by the Aztec and the cogent
argument that the principals of the political power structure would have
enjoyed the human flesh as a critical source of protein and fat, and pp.
102–3 for ritual sacrifice practiced by Amerinds from Brazil to the Great
Plains (of North America) and for the cannibals Tupinamba to include
breast-smearing mothers observed in the early 16th century by German
sailor Hans Städen while shipwrecked on the coast of Brazil.
Daniel L. Boxberger, “Amerindian Slavery, Pacific Northwest,” HEWS,
vol. 1, p. 36, col. 2 about slavery in Pacific Northwest Amerindian soci-
eties in the precontact period. Patricia A. Kilroe, “Amerindian Slavery,
Plains,” HEWS, vol. 1, p. 37, col. 1 about slavery in the Plains of North
America in the prior to contact with Europeans. Patricia A. Kilroe,
“Amerindian Slavery, Southeast,” HEWS, vol. 1, pp. 37–8 about slavery in
the Southeast prior to contact with Europeans, including the practice of
mutilating male slaves valued for labor ‘just enough to prevent escape.’
Kimberly Henke Breuer, “Amerindian Slavery, Mesoamerica,” HEWS,
vol. 1, p. 35, col. 2 about the Aztecs usually sacrificing war captives made
slaves shortly after capture. Paul Finkelman, “Human Sacrifice: The New
World and Pacific Cultures,” MEWS, vol. 1, p. 421, col. 2 about Aztecs
frequently eating sacrificial victims, and p. 421, col. 1 about the Tlingit
Indians of northwestern North America who burned slaves alive on funeral
pyres. Geoffrey W. Conrad and Arthur A. Demarest, Religion and Empire:
The Dynamics of Aztec and Inca Expansionism (1984), p. 47 and p. 78,
endnote 129 about the dedicatory sacrifice of about 20,000, the lines
extending along the four causeways, and the human stew typically
consumed after such sacrifices. Found via Conrad and Demarest, Religion
and Empire, p. 48, p. 78, endnote 129, and perhaps the bibliography that I
did not copy, S. F. Cook, “Human Sacrifice and Warfare as Factors in the
Demography of Pre-Colonial Mexico,” Human Biology, Vol. 18, No. 2
(May 1946), pp. 88–91 about the same dedicatory sacrifice in 1487 to
include use of the obsidian knife, processing of each victim estimated to
take 2 or 3 minutes, the estimate of 14,100 victims sacrificed on the top of
the temple, the idea of additional sacrifices in the vicinity estimated to
bring the total to around 20,000, and the two towers built of lime and skull.
B. G. Gokhale, “Fifteenth Century: 4. The Americas,” EA–99, vol. 11, p.
186, col. 2 about Aztecs sacrificing 20,000 people in 1486, but I have not
been able to confirm a count for that year and wonder if the year should be
1487. Charles S. Sargent, “Mexico City,” EA–99, vol. 18, p. 878, col. 1
about the Spaniards led by Cortés razing the Aztec capital Tenochtitlán in
1521 to build on its ruins the Spanish capital Mexico City.
Beverly B. Mack, “Eunuchs,” MEWS, vol. 1, p. 317, col. 2 about the
close historical relationship between eunuchism and slave status, the swath
of ancient civilizations to have practiced eunuch slavery, and the later
enslavement of white eunuchs by the Byzantine and Ottoman Empires.
Junius P. Rodriguez, “Introduction: Slavery in Human History,” HEWS,
vol. 1, p. xviii about the estimated survival rate for castrated males of
roughly 10 percent, p. xx, col. 2 about the origin of the antislavery moral
from the Enlightenment of 18th-century Europe, and p. xxiii, col. 1 about

Korea feigning abolition. Jane Hathaway, “Eunuchs,” HEWS, vol. 1, p.
261, col. 2 about the greater severity in castration necessarily applied to
African and Chinese eunuchs produced for the Ottomans, and p. 262, col.
2 about the Saudi government allowing the use of eunuchs at Muhammad's
tomb in Medina to lapse in the 20th century. Jane Hathaway, “Ottoman
Empire,” HEWS, vol. 2, p. 484, col. 2 about the Saudi government
allowing the use of eunuchs at the Prophet's tomb to lapse quietly in the
1920s, but this specificity is contradicted infra by Shaun Marmon. John
Warrack and Ewan West, The Oxford Dictionary of Opera (Oxford:
Oxford University Press, 1992), vol. 1, vide ‘castrato’, p. 122, col. 1 about
the Roman Catholic Church interpreting 1 Cor. 14:34 and the use of
castratos exclusively for sacred music from circa 1562 until perhaps the
17th century when castratos performed opera—I added verse 35 since it is
germane. John Rosselli, “Castrato,” The New Grove Dictionary of Opera,
ed. Stanley Sadie (London: Macmillian Press Limited, 1992), p. 766, col. 1
about the first documented castrato singers roughly 1550–1560, their use
in churches from that time until at least the 1920s, and the expenses of
some surgeries paid by ‘the ruler of a princely state or by the governing
body of a leading church,’ and p. 768, col. 1 about the retirement of the
last castrato of opera in 1830. Shaun Marmon, Eunuchs and Sacred
Boundaries in Islamic Society (New York and Oxford: Oxford University
Press, 1995), p. 146, endnote 267 about the activism of Muhammad ibn
‛Abd-al-Wahhāb, pp. ix, 14, 34 and pp. 122–3 endnote 37 about the intro-
duction of eunuchs to the sanctuary of the Prophet by the Mamluks,
evidently in the 12th century, and the introduction of eunuchs to other holy
places including the Ka‛ba, p. 93 about the role of eunuchs at Muham-
mad's tomb in Madina (or Medina) having existed for nearly 800 years in
1925, p. 105 about the purchase of young castrated Negroid Africans for
eunuch apprenticeships, pp. 106–7 about the first interruption, by Wahhabi
Muslims, in 1804 of the eunuch tradition at Muhammad's tomb, a policy
seemingly to have contributed to the brevity of the first Wahhabi rule (it
ended in 1818), pp. 107, 109 about the toleration of the eunuch tradition
by the Wahhabi regime started by ‛Abd al-‛Aziz II (turns out to be the
Saudi Royal family, tied to the Bush family of the United States) because
of the risk to political stability, pp 111–2 about the ongoing practice of the
eunuch tradition in 1990 at Mecca and Madina, and p. 50 and p. 126,
endnote 48 for the Turkish ethnicity and white elitism of the Mamluk
sultanate, referenced supra from Bernard Lewis.
The introduction of Chronology of World Slavery, ed. Junius P.
Rodriguez (Santa Barbara, California: ABC-CLIO, c1999), p. xxi, col. 1
about the origin of the antislavery impulse from the Enlightenment only
two centuries ago, but note the publication date. The aforementioned
source shall be abbreviated as CWS. Talaat Shehata, “Abolition, Islamic
World,” HEWS, vol. 1, p. 7, col. 1 about the Islamic world's open dissent
on slavery into the 20th century.
Au'Ra Muhammad Abdullah Ilahi, “The Qur'an,” HEWS, vol. 2, p. 536,
col. 2 about how the Qur'an regards slavery as ephemeral and for the
tenacity of slavery in the Middle East. Jennifer Margulis, “Arab World,” a
sidebar, CWS, p. 103, col. 2 about continued slavery in the Islamic world,
but note the publication date. E. Ann McDougall, “Islam: An Overview,”

MEWS, vol. 1, p. 438, col. 2 about slavery in the 20th-century Islamic
world. David M. Cobin, “Judaism,” MEWS, vol. 1, pp. 450–1 about the
past condoning of slavery by Judaism. David M. Cobin, “Jews,” MEWS,
vol. 1 p. 448 about Jewish slave traders of the 9th and 10th centuries.
Robert L. Paquette, “Enslavement, Methods of,” MEWS, vol. 1, p. 308,
col. 2 about the distinct possibility that a notorious Jewish house of castra-
tion was located in Verdun, France to produce eunuchs for purchase by
Muslims in accordance with Islamic law that prohibited the mutilation on
Islamic ground. Charles J. Adams, “Islam,” EA–99, vol. 15, p. 493, col. 2
about the theological overlap with the Bible's Abraham, David, and Jesus,
and the Islamic belief that prophecy was bestowed upon the first man
Adam. Demarcation of the verses in the Quran (written necessarily in
Arabic) is done by rhyming words and varies, as do the citations to the
verses; more is said on p. 306, fnote 20. 'Abdullah Yūsuf 'Alī, trans. (and
author of introductory and supporting commentary), The Meaning of the
Holy Qur'ān, 10th ed., eds. Ismā'īl Rājī al Fārūqī et al. (Beltsville, Mary-
land: Amana Publications, 2003, reprint of 1999), pp. 24–5 (2:31–5), 789
(20:120–1) concerning Koranic revelation about Adam, the Garden and a
forbidden tree, pp. 28–35 (2:49–67) about Moses, pp. 89 (2:221), 215
(4:92) about believing slaves, p. 126 (3:3) about the Law (of Moses) and
the Gospel, and p. 149 (3:84) about Abraham, Moses and Jesus. A. J.
Arberry, trans. (and author of introductory commentary), The Koran Inter-
preted (New York: Simon & Schuster Inc., 1996), vol. 1, pp. 33 (2:29–33),
348 (20:118–9) concerning Koranic revelation about Adam, the Garden
and a forbidden tree, pp. 34–6 (2:46–64) about Moses, pp. 58 (2:220), 114
(4:94) about believing slaves, p. 73 (3:2) about the Torah and the Gospel,
and p. 85 (3:78) about Abraham, Moses and Jesus—this source found via
G. M. Wickens, “Arab Civilization: 3. Literature,” EA–99, p. 154, col. 1.
'Abdullah Yūsuf 'Alī was a Muslim and A. J. Arberry was not. Seyyed
Hossein Nasr, A Young Muslim's Guide to the Modern World, 2nd ed.
(Chicago: KAZI Publications, Inc., c1994), p. 14 about Abraham, Moses
and Christ as figures of Judaism, Christianity and Islam, p. 49 about Adam
and the Edenic state, and p. 186 about the first man being of divine
creation according to the Quran as with other sacred scriptures and about
the Islamic tradition of calling that first man Adam. You might find it
interesting to compare, for example, the Quran 9:23–4 with the Christian
Bible, Matthew 10:34–7.
33 para: Confucius
Gernet-Foster, History, pp. 396–7 about Ming autocratic control, pp.
409, 415–6 about increasing dominance of ingot and coin silver, and pp.
403, 409, 420–2 about trade with southeast Asian countries perhaps never
greater (at time of original publication in 1972), unprecedented piracy,
rapid deterioration of poor, and widespread poverty. Hucker, China's, pp.
354–5 about copper coins, aversion to paper, and silver medium, and pp.
291,352 about xenophobic isolationism, trade, tribute, dealings and mili-
tary. Hosea Ballou Morse, The International Relations of the Chinese
Empire, in 3 volumes (London: Longmans, Green, and Co., 1910 for vol.
1, 1918 for vols. 2 and 3), vol. 1, p. xxxix for tael that varies with system
from 525 to 585 grains. Analogously, the avoirdupois ounce is 437.5

grains while the troy ounce is 480 grains. Canadian Sessional Paper No.
54a, dated 25 February 1885, Session 1885 (5th Parliament, 3rd session),
Vol. 11, Chapleau's Report, p. xxxix describes of China ‘the effects of an
indurated self-complacency.’
33 para: chaining,
34 para: emphasized
Hucker, China's, pp. 75–7 about Confucius, pp. 32, 79 about relations
to Chou dynasty, pp. 55, 70–1 about Heaven, pp. 55–7 about the Son of
Heaven, pp. 123, 127 for during Han times, pp. 97–9 about canonization,
and pp. 99, 101–2 for the quote, before my slight alteration, and descrip-
tion of the translated excerpt of Ta-hsüeh (The Great Learning, also per
Hucker), a short essay from Li-chi (Ritual Records, also per Hucker).
William Theodore de Bary, et al., Sources of Chinese Tradition (New York:
Columbia University Press, 1960), pp. 5, 127, and p. 129 w/ fnote 15 for
“The Great Learning” (“Ta hsüeh”) as chapter 42 of Li chi or Book of Rites
and a different translation of the same excerpt of The Great Learning, to
include ‘affairs have their beginning and end.’ I have used the charismatic
translation in Hucker's book with the modification of ‘endings and begin-
nings’ to ‘beginnings and endings’ because the resulting parallelism as
exemplified and validated by the translation in de Bary's book improves
readability, and I care about you.
35 para: proper
De Bary, Sources, pp. 510–1 about Neo-Confucian synthesis of ideas to
displace from Chinese society the rival doctrines Buddhism and Taoism
and to reassert Confucian state orthodoxy, and p. 446 about recruiting
scholars to influence government. Hucker, China's, pp. 362–5 about
expansion but not particularly the literati per se, p. 363 about term Neo-
Confucianism, pp. 366–8 about the Supreme Ultimate, li and ch'i, pp. 99,
363 about Four Books, pp. 365–75 about the lineage and irreconcilability
of li-hsüeh (study of principles, per Hucker) or the Ch'eng-Chu school, and
hsin-hsüeh (study of the mind, per Hucker) or the Lu-Wang school.
Louise Chipley Slavicek, Confucianism, (San Diego: Lucent Books, Inc.,
c2002), pp. 63–4 about expansion aimed at intellectuals in particular,
school names in English, and qi.
35 para: away
Gernet-Foster, History, pp. 542–3 for decline during 1800s, and p. 546
about the pigtail as a sign of enslavement. Demetrius Charles Boulger,
The History of China, in 2 volumes (London: W. Thacker & Co., 1898),
vol. 1, pp. 733–4 for decline during 1800s, pp. 728–9 about late 1700s
famine, p. 514 including sole footnote about the shaven head, and appar-
ently the pig-tail itself, required under penalty of death for some undefined
period starting at the Qing conquest and being ‘the custom’ circa this
source's publication year of 1898, and in vol. 2, pp. 7–10, 211–4 about
corruption and insurgency. Morse, Relations, vol. 2, pp. v–vi for decline
of late 1800s to 1912 end, pp. 163–4 about longstanding-prohibition,
meaning no regulation of what actually occurred, and imperial weakness,
pp. 307–9 about famine killing millions in late 1870s, pp. 164–5 about
centuries-old migration by junks, the Chinese sailing ships, and in vol. 1,

pp. 401–2 for British indifference at Amoy other than the expression of
‘disapprobation’ and fines of $20 and $200 levied on two Englishmen who
rescued their emigration broker from Chinese authorities. Hucker,
China's, pp. 301–2 about permanently impoverished class in nineteenth
century, and p. 341 for the popular Chinese saying about heaven and the
emperor, but the latter word has been capitalized unlike in the source—
note written Chinese has no capitalization. “Persecuted Celestials,” New-
York Times, 16 August 1869, p. 1 col. 1, bottom about extreme poverty in
the 1850s and 1860s motivating coolies to migrate.
Aishwariyaa Ramakanthan, The British and the Coolie Trade of Singa-
pore, 1821-1877 (San Diego: University of San Diego, 1999), is a master's
thesis that conveys a concise, candid overview of coolie labor management
—something grievously lacking in many ‘professional’ books, the one by
Campbell cited shortly to be excepted. Ramakanthan, Trade of Singapore
has a bibliography that led to many useful sources used herein, is itself the
only source I found in what review I made to plainly state that Chinese
secret societies controlled coolie laborers with gambling and opium (p.3),
is the only source I found to unflinchingly declare a western governance
pursued a coolie policy of advantageous apathy (p. 63), and shall be abbre-
viated as ‘Rama, ToS’.
C. M. Turnbull, The Strait Settlements, 1827-67: Indian Presidency to
Crown Colony (London: The Athlone Press, University of London, 1972),
p. 1 via Rama, ToS, p. 20, fnote 49 but citing p. 7 about recast of holdings
as the Straits Settlements, pp. 4–5, 7 about immigration encouraged by
free trade and light taxation, pp. 9–11 about Chinese direct from China, p.
23 about ‘capital for trading in the Straits’ from Europeans, p. 36 about
entrapment of Chinese coolies due to opium addiction and ‘bad luck in
gambling’ without mention of secret societies, p. 44 about aversion of
Chinese laborers to direct European employ, p. 109 about the sinkheh
defined as a ‘new arrival’, the hope of migrant Chinamen for quick
economic gain and return to China, and the secret societies' dispensation of
brotherhood, protection, and oppression to Chinese migrants, p. 116 about
profits from the coolie traffic, opium farms (or the business licensed to
collect opium tax), spirit farms, and prostitution, and p. 128 about no
supervision of coolies or prostitutes by British Straits authorities before
1870s—but alas, the operations of Chinese secret societies and their rami-
fications are left to the reader's conjecture. C. M. Turnbull, A History of
Singapore, 1819–1988, 2nd ed. (Singapore, Oxford University Press,
1989), p. 13 about Chinese from the lands of South China Sea found via
Rama, ToS, p. 21, fnote 52 but corrected for this Turnbull source, p. 7
about multinational economy, mining, and agriculture, pp. 107, 116 about
tin mining and agriculture, pp. 35–6 about immigrant merchants, noting
Hokkien and Teochew are subgroups of Chinese, p. 52 defining hoey as
Chinese secret societies, and p. 86 about prostitution and Hainanese boys.
Mary F. Somers Heidhues, Southeast Asia's Chinese Minorities
(Hawthorn, Victoria, Australia: Longman Australia Pty Limited, 1974),
map opposite p. 1 for subcultural regions of Chinese migrants, including
regions populated by Hokkien and Teochiu (Teochew), and p. 16 about the
‘pig trade’, the notion of indentured labor, and the burdens of opium
consumption and gambling debts owed labor bosses and employers found
via Rama, ToS, p. 43, fnote 104.
Persia Crawford Campbell, Chinese Coolie Emigration to Countries
within the British Empire (London: Frank Cass and Company Limited,
1971), a reprint of 1923 original edition and an excellent source, pp. xvii,
2, 5 about a minority of Chinese migrants arriving at the Malay Peninsula
via the credit-ticket system as ‘Sinkhehs’ or indebted laborers, meaning the
majority of arrivals were free persons, pp. 8–11 about British indifference
and ineffective regulation of the coolie trade in the Straits Settlements, p.
19 about British Hong Kong law not recognizing the credit-ticket system
until an ordinance of 1908 was passed, pp. 6, 17 for the ‘pig business’, and
p. 8 about the coolie trade run by officials of ‘the more dangerous secret
societies,’ the shepherding of Sinkhehs by fighting men of secret societies,
and the unawareness of Sinkhehs to any other government in the Straits
Settlements.
Wilfred Blythe, The Impact of Chinese Secret Societies in Malaya: A
Historical Study (London: Oxford University Press, 1969) p. 1 about the
pervasive, tyrannical and social power, and the role to some degree as a
surrogate family of Chinese secret societies, p. 43 about the ‘selling of
piglets’ and the ruinous fondness of gaming, p. 45 about Triad societies as
‘the principle control centres of the Chinese population,’ p. 47 about domi-
nation of the Triad societies as early as 1824 in Singapore, p. 48 about
opium but not opium addiction, p. 59 about discipline of secret societies
punitively enforced usually by whippings and perhaps by executions, p.
169 for an opinion given in 1873 but no assertion as fact that coolie labor
was stigmatized as slavery, and p. 225 for a quote forgone as contemporary
opinion in 1888, with nary assertion of fact, about the oppression of
Chinese poor by secret societies with gambling and prostitution—but alas,
for that array of loose concepts, a concise and integrated representation of
fact remains elusive.
Wong Choon San, A Gallery of Chinese Kapitans (Singapore: Dewan
Bahasa dan Kebudayaan Kebangsaan, Singapore Ministry of Culture,
1963), p. 21 about a brilliant, multilingual Chinaman graduated from Scot-
land's Edinburgh University who decided to move to China and so grew a
pigtail he fondly called ‘the badge and insignia’, p.37 about inability of
Chinese in the Straits Settlements to appreciate Western government, p. 54
about industrious coolie from Fukien Provence settling in Kedah circa
1820 and having two sons who became wealthy and influential, p. i about
the definition of a Kapitan China and the pronunciation ‘Cheen-Na’, pp.
30–1 for the role of Kapitans regarded and made indispensable by Singa-
pore's Chinese community, p.29 about ‘strangle-hold’ of triad societies on
‘Chinese immigrants and labour recruits,’ and p. 57 about control of
alcohol, opium, and gambling farms (taxation businesses) by leaders of
secret societies. Wong, Gallery was discovered as a source, but without
specific page references, via Stanford M. Lyman, “Conflict and the Web of
Group Affiliation in San Francisco's Chinatown, 1850–1910,” Pacific
Historical Review, Vol. 43, No. 4 (November 1974) on page 476, fnote 6,
though the Wong source so referenced explores little about Dutch colonies
—pp. 2, 6, 30, and 39—and contrary to implication states nothing about
French colonies; however, the article is quite informative, and my lack of

knowledge regarding Chinese in former French colonies does not afford
me further insight.
Thomas W. Chinn, Bridging the Pacific: San Francisco Chinatown and
Its People (San Francisco: Chinese Historical Society of America, c1989),
p. 17 about the pigtail ‘imposed as a sign of their subjugation to the horse-
loving Manchus’ and ‘formally abolished shortly after the establishment of
the Republic in 1912.’ Victor Purcell, The Chinese in Southeast Asia
(London: Oxford University Press, 1951), p. 320 via Wong, Gallery, p. 69,
fnote 13 but the op. cit. of Wong is not resolved, and also Victor Purcell,
The Chinese in Southeast Asia, 2nd ed. (London: Oxford University Press,
1965) reprinted 1966, p. 266 for the quote. Siah U Chin, “The Chinese in
Singapore: General Sketch of the Numbers, Tribes, and Avocations of the
Chinese in Singapore,” a literal translation from Chinese, Journal of the
Indian Archipelago and Eastern Asia, Vol. 2 (1848), pp. 285–6 about
migrant hopes dashed by gambling but especially by opium addiction that
drove them fearlessly to robbery and to labor imperiled by tigers found via
Rama, ToS, p. 43, fnote 104.
36 para: so, etc.,
37 para: immigration
First, a clarification of the historical record is apropos. Morse, Rela-
tions, vol. 2, p. 181 states termination of the coolie trade, at Macao, came
with the instructions sent by the Portuguese Government to Macao forbid-
ding all (Asiatic) emigration from that place. Via footnote 98 of said page
181, the citation given as evidence is: “Senhor Corvo to Mr. Cobbold,
Lisbon, March 19th, 1875, Mr. Cobbold to Lord Derby, March 22,
“Emigration from Macao,” 1875, p. 28.” Campbell, Emigration, p. 158
states the coolie trade from Macao ceased at the end of March 1874. Via
footnote 1 of said page 158, the citation for a quote by one Senhor Corvo
is: “C. 1212 (1874–5), Enc. 1 in No. 7.” I was able—courtesy of the
Microforms Department, Hillman Library, University of Pittsburgh—to
access Command Paper C.1212 (1875) as contained within the British
Sessional Papers archived as Readex microprint, vol. 77 (1875), pp. 743–
774. Pages 745–772 of the Parliamentary volume correspond with pages
1–28 of C.1212 itself, and both paginations will be referred together and
respectively with an intervening slash. C.1212 contains the main text of
28 primary documents and other selected documents that were enclosures
to the primary documents. So ‘Enc. 1 in No. 7’ means enclosure 1 of
primary document no. 7. It so happens the correspondence cited by Morse
is engrossed as enclosure 1 of no. 28 and no. 28, respectively (p. 772/28).
Senhor Corvo, Portugal's Minister and Secretary of State for the Depart-
ment of Marine and Colonies (pp. 754–5/10–1), wrote on 19 March 1874
to Mr. Cobbold, Britain's Chargé d'Affaires at Lisbon (pp. 771–2/27–8), of
which the translation reads (p. 772/28): “I have to state to you in reply that
the Government of His Majesty, in view of the importance of the matter,
has already taken the necessary steps, and accordingly instructions were
given to the present Governor of the Province [of Macao and Timor], in
the sense of forbidding, until further orders, emigration under contract as
well as free emigration.” (The elaboration in brackets, based on the
preceding portion of the translation, I have added.) In fact, according to

enclosure 2 in no. 7 (p. 754/10) the Portuguese Government issued an
ordinance 20 December 1873 to end the contract emigration after expira-
tion of a period defined by an Article 84. The period proved to be 27
December 1873 to 26 March 1874, inclusive (pp. 749/5, 758/14). In corre-
spondence to the Earl of Derby dated 6 October 1874, Mr. Cobbold writes
(p. 768/24) of Senhor Corvo: “he assured me that, in March of this year, he
even telegraphed to the Governor of Macao not to allow free emigration as
he feared it might serve as a cloak to the old traffic.” The diplomatic
concern expressed by the British to the Portuguese was not to prevent the
continuance of the coolie trade at Macao, for no Chinese had emigrated
from Macáu since March 1874 (pp. 758/14, 768/24), but rather to prevent
the resumption of the trade (p. 770/26). A reported departure (pp. 747–
8/3–4) of the Lola from Macáu for Peru on 27 March 1874, the first day
contract emigration was made illegal (pp. 770–1/26–7), lacks confirmation
(p. 758/14) but if true seems to be the last contract emigration of Chinese
by a thoroughly Occidental system until the 20th century.
Holden, “Chapter,” p. 2, col. 1 about Indian coolies from Calcutta and
Chinese coolies to Cuba in 1847. U.S. House Report 443, dated 16 April
1860 (36th Cong., 1st sess.), pp. 1–3 about Indian coolies and public pres-
sure, and p. 6 about the buying of Chinese women and children for ‘the
purpose’ as may be interpreted. Campbell, Emigration, p. xvii, about the
naming and basic distinction between the credit-ticket and contract
systems, pp. 24, 26 for the idea that the credit-ticket system in British
Malaysia ‘gave rise to a contract system,’ pp. 5–6, 13 about the nature of
the credit-ticket system, pp. 95–7 about the contrasting nature of the
contract system, p. 95 about exploitation by Chinese brokers facilitated by
peculiar Chinese laws regarding debt bondage, p. 94 about the first ship-
ment of coolies under foreign contract in 1845 in a French vessel from
Amoy to the Isle of Bourbon, and a shipment for a Spanish company to
Cuba in 1847, pp. 157–8 about pressure from Britain ending the Macao
coolie trade 1873–1874, p. 111 with fnote 3 about Cuban agents procuring
girls not older than 8 years to conform with a Spanish Royal Decree for a
certain proportion of females, and for your just comprehension, the
common Chinese practice—confirmed by Hucker, China's, p. 11—of
female infanticide, p. 130 about the shipment to the British West Indies of
coolie families to include women and children, pp. 19, 150, 152, 155 about
both coolie systems at Hong Kong, pp. 152–8 about regulatory changes,
deflective accusations, and the cessation of Macao in March 1874 (but
Morse says March 1875 as noted below), p. 152 with p. 28 about contract
emigration from Hong Kong limited to destinations within the British
Empire from circa June 1870, pp. 158–9 about the 1874 suspension of
contract emigration from Hong Kong to the British West Indies made
permanent under pressure of British public opinion, pp. 161, 184, 187, 214
about South African gold mines, pp. 11, 22 about introduction of contract
system to British Malaysia, p. 25 about termination of all coolie trade
systems in British Malaysia 1914–1916, pp. xviii, 217 about prohibition of
contracted Chinese labor from 1916 until Western Samoa received permis-
sion in 1919, and pp. 232–3 about contracted Chinese coolie labor existing
in Nauru 1920–1921 but little more, though chapter 5 about Western
Samoa and Nauru is entitled “The Present System in the South Pacific
Islands” in a book first published in 1923. Frank H. Norton, “Our Labor-
System and the Chinese,” Scribner's Monthly, Vol. 2, No. 1 (May 1871), p.
67, col. 1 about start in 1847 to Peru.
“Monthly Record of Current Events,” Harper's New Monthly Magazine,
Vol. 18, No. 106 (March 1859), p. 544, col. 1 about forceful suppression at
time of publication along the African coast by American and British
squadrons. Martin A. Klein, “Abolition, Africa,” HEWS, vol. 1, p. 2, col. 1
about the French also patrolling near the West African coast, incidentally,
but the time is not given. 12 Stat. 1225 engrosses a treaty of 7 April 1862
‘between the United States and Great Britain for the Suppression of the
Slave Trade,’ and note p. 1226 about the two patrol areas: within 200 miles
of the coast of Africa and within thirty leagues of the coast of Cuba.
Klein, Atlantic, pp. 188, 191–2 about forceful suppression by British near
the African coast begun November 1819 and the Americans joining the
British in the Caribbean in 1859, at least until 1862, and apparently until
Spain conceded the slave trade from Africa, pp. 190–1, 198 about slave
imports solely to Cuba after 1851 (stoppage of imports to Puerto Rico is
unaddressed, the norm with at least English sources if my research is
indicative), p. 192 about the last slave ship, p. 139 about average 11.5
percent mortality rate of slaves during transport by Portuguese, Spanish,
and French in the years 1830–1867, and p. 159 about disease, suicide, etc.
S. Wells Williams, “Our Treaties with China,” New Englander, Vol. 38,
No. 150 (May 1879), p. 305 about ports in 1866 and Spanish shippers, and
pp. 309–10 citing a joint resolution of the U.S. Congress dated 16 January
1867 about par replacement. “The China Question,” North American
Review, Vol. 90, No. 186 (January 1860), p. 143 about American, British
and French shippers. Francisco A. Scarano, Sugar and Slavery in Puerto
Rico: The Plantation Economy of Ponce, 1800-1850 (Madison, Wisconsin:
The University of Wisconsin Press, 1984), pp. 121–2 about the deceptive
records of Puerto Rican officials fooling many historians. Philip D.
Curtin, The Atlantic Slave Trade: A Census (Madison: University of
Wisconsin Press, 1969), p. 40, table 9b and p. 44, table 10 for estimates of
slave imports to Cuba and Puerto Rico used to calculate ballpark figures,
e.g. ( ((8/14) x 9,800)+5,600 )/14 = 800, found via Scarano, Sugar, p. 121,
endnote 4. Jorge L. Chinea, “Race, Colonial Exploitation and West Indian
Immigration in Nineteenth-Century Puerto Rico, 1800–1850,” Americas,
Vol. 52, No. 4 (April 1996), p. 514 about Puerto Rican authorities
impounding roughly one thousand illegal slaves landed in 1859. Edward
L. Burlingame, “An Asiatic Invasion,” Scribner's Monthly, Vol. 13, No. 5
(March 1877), p. 689, col. 1 quoting from George Seward, “China” in
Appleton's American Cyclopedia, new version about par replacement.
John King Fairbanks et al., H.B. Morse, Customs Commissioner and
Historian of China (Lexington, Kentucky: The University Press of
Kentucky, c1995), p. 5 for ascribing to historian of China Hosea Ballou
Morse ancestry of Puritan stock, loyalty to his alma mater Harvard, and
the successive national identities of ‘a Nova Scotian and a British subject,
a naturalized U.S. citizen, and then again a British subject during his later
years in England,’ pp. 57–8 about his being too American for British
tastes, and p. 234, within the afterward by Richard J. Smith, about Morse's
heavy reliance on British sources for his (magnum opus according to

inside, front flap but R. J. Smith within preface on p. ix says his magnus
opus was China: A New History) International Relations, particularly
volume one—his voice was something British-American. Morse, Rela-
tions, vol. 1, p. 363 about first coolies by foreign ship at all going to
Havana in 1847, pp. 338, 341 about de facto Portuguese territory only
recognized by China in 1887, and from vol. 2, p. 165 about same first
coolies to Cuba from Amoy in 1847, p. 173 about prostitutes of the
contract system, pp. 168 at fnote 27, 169–71 for markets of Chinese
coolies, pp. 170–3, 178–9 about coolie ships dubbed “floating hells,”
voyages over 100 days, disease, suicide, mutiny, and an average mortality
rate of 14 percent from Hongkong to Cuba in the years 1847–1857, p. 176
about transport perhaps worse for Negroes, pp. 177–8 about 1866 conven-
tion and feeble Chinese efforts, pp. 169, 171 about coolie-system supervi-
sion at Hong Kong but lacking elsewhere, p. 118 for Macao as a ‘haven’,
p. 117 about virtue of the British, French and American governments and
the vice of the Spanish, Portuguese and Peruvian governments regarding
the coolie trade, and p. 181 about demise of the Macao coolie trade 1873–
1875 under pressure of the British with the approval of France and
Germany, and under pressure from China, ending March 1875.
C. M. Turnbull, Singapore, pp. 53–4 citing Straits Settlements Records,
V37, p. 155 about about high mortality from China to Singapore, via
Rama, ToS, p. 35, fnote 83 though citing Turnbull, 1st ed. (1977). Edward
L. Burlingame, “An Asiatic Invasion,” Scribner's Monthly, Vol. 13, No. 5
(March 1877), p. 688, col. 1, bottom and p. 689, col. 1, top about the virtue
of Hong Kong and the vice of Macao regarding the coolie trade. C.1212,
p. 752/8 refers to a Portuguese Government report that appears to date the
beginning of the Chinese coolie trade to 1845, passim for pressure by
British 1874–1875, pp. 770–1/26–7 about contract abolishment effective
27 March 1874 and the year-long suspension begun 1 April 1874, pp.
769/25, 772/28 about the indefinite extension. Franklin W. Knight,
“Slavery,” EA–99, vol. 25, p. 24, col. 1 about quietuses of slavery.
38 para: State
Marguerite Aspinwall, “Forty-niners,” EA–99, vol. 11, p. 629 and p.
630, map's caption about discovery of gold 24 January 1848 in the western
foothills of the Sierra Nevada. 9 Stat. 922, 942 for the date of signature of
the Treaty of Guadalupe Hildago. Howard W. Caldwell, “Mexican War,”
EA–99, vol. 18, p. 808, map with caption for the land annexed. The
remainder of the U.S. Southwest was annexed in 1854 with the Gadsden
Purchase according to its treaty engrossed at 10 Stat. 1031. Clifton
McCleskey, “Texas,” EA–99, vol. 26, p. 558, col. 2 about slavery issue,
land grants, unsuccessful checks by Mexican authorities on American
immigration into Texas, inflammatory abuses by dictator Santa Anna and 9
years of republic independence calculated from 1836 to 1845, and p. 541,
col. 2 for name ‘Republic of Texas’. Seymour V. Connor and Odie B.
Faulk, North America Divided: The Mexican War, 1846-1848 (New York:
Oxford University Press, 1971), p. 9 about land grants, p. 11 about rebel-
lion in the state of Coahuila and Texas, and p. 13 for the state name in
Spanish of ‘Coahuila y Texas’. Elmer Clarence Sandmeyer, The Anti-
Chinese Movement in California (Urbana, Illinois: The University of Illi-

nois Press, 1939), p. 9 about illegal immigration, with respect to both
Spanish and then Mexican law, of Americans into California in the decades
preceding the Bear Flag Revolt and Mexican War, without a word of land
grants and with the word impatience applied to those self-determined Cali-
fornians bent on republicanism, prosperity, and justice. Michael C. Meyer,
“From First to Second Revolution,” in “Mexico: 8. History,” EA–99, vol.
18, p. 864, col. 2 about recurrent dictatorship of Santa Anna. Andrew
Rolle, “California,” EA–99, vol. 5, p. 211, col. 2 for U.S. concern that the
British might annex California. Nelson Trottman, History of the Union
Pacific: A Financial and Economic Survey (New York: Augustus M.
Kelley, 1966), p. 9 about the Mason and Slidell affair in 1861 that
portended a war between the United States and Britain to include a contest
for California. Trottman, Union Pacific found via Nevins, Emergence, p.
54, fnote 1.
39 para: Francisco
Ralph P. Bieber, ed., Southern Trails to California in 1849 (Glendale,
California: The Arthur H. Clark Company, 1937), pp. 21-25 for the
buildup of news in eastern U.S. newspapers August–December 1848 and
the definitive confirmation by Polk in his message, p. 101 citing U.S.
House Executive Document 1, (30th Cong., 2nd sess.), p. 10 for a larger
excerpt containing the quote shown, but the second comma reflective of
the executive document is omitted, and p. 13 for the possibility of inten-
sional alteration by the editor. The “American Memory” portal of the U.S.
Library of Congress has a useful “Century of Lawmaking” digital collec-
tion. Access it by directing your browser to http://www.loc.gov->link
“American Memory”->navigate to collection “U.S. Congress ~ Documents
~ 1774-1875.” The search feature of the “Century of Lawmaking” collec-
tion given the key words ‘Polk’, ‘gold’ and ‘California’, and limited to the
30th Congress may help you find four sources for Polk's message,
described herein as accessed 20 September 2007: 1) U.S. Senate Journal,
30th Congress, 2nd session (1849), 5 December 1848, p. 14 for the quote
and p. 28 for the term ‘annual message’; 2) U.S. House Journal, 30th
Congress, 2nd session (1848–49), 5 December 1848, p. 17 for the quote
and p. 31 for the term ‘annual message’; 3) Congressional Globe, 30th
Congress, 2nd session (1849), New Series No. 1 (8 December 1848), p. 3,
col. 1, middle about Polk's message received and read to a joint assembly
of a quorum of each House on 5 December 1848, p. 4, col. 3, middle for
the quote, and p. 8, col. 2, top for the term ‘annual message’; 4) Appendix
to the Congressional Globe, 30th Congress, 2nd session (1849), New
Series No. 1 (8 December 1848 by inference?), p. 2, col. 3, bottom for the
quote, and p. 6, col. 2, bottom for the term ‘annual message’. Gerhard
Peters, research notes of the “State of the Union Message” Web page as
accessed 17 Sept 2007 from The American Presidency Project at
http://www.presidency.ucsb.edu/sou.php about the Polk announcement as
Polk's fourth, final, State of the Union message in the form of a written
report, and the page had a link to the text of that message yielding the
quote but with the absence of the two commas.
Charles Bateson, Gold Fleet for California: Forty-Niners from

Australia and New Zealand (East Lansing, Michigan: Michigan State
University Press, 1964), pp. 23–7 about the news of gold traveling by ship
from Auckland, New Zealand on 3 December to Sydney, Australia on 20
or 21 December, resulting in Australia's first newspaper announcement on
23 December 1848. Morse, Relations, vol. 2, pp. 165–6 about California
gold discovery and early Chinese immigration, vol. 1, pp. 443–4 about
background of divine claimant, pp. 452–3 about pillage by Taipings and
Imperialists, and in vol. 2, pp. 70, 82 about pillage and foreign merce-
naries, p. 111 about famine represented in 20 million deaths of Taiping
Rebellion, p.107 about cannibalism, p. 114 about bubonic plague from
Yunnan to Hongkong and to India via Bombay where millions of deaths
resulted, p. 68 about aggressive ‘neutrality’, p. 65 about support and
motive of Western governments, pp. 69–74 about the Ever-victorious
Army and Ward. Burlingame, “Invasion,” p. 690, col. 2, about early
Chinese immigration. Hucker, China's, p. 331 about 412 million Chinese
in 1850, p. 331 about stripping last forests of China.
Historical Statistics of the United States, Colonial Times to 1970, bicen-
tennial ed., part 1, series A7, U.S. Bureau of the Census, as accessed on 10
July 2007 from the “Statistical Abstracts” Web page at
http://www.census.gov/prod/www/abs/statab.html, p. 8 for US population
on 1 July 1850 of 23,261,000 residents, apparently including U.S. territory.
Franz Rothenbacher, The Societies of Europe: The European Population,
1850-1945 (Houndsmill, Hampshire, England: Palgrave Macmillan, 2002)
for data used to calculate a European population of 153,892,102 among 17
nations on 30 June 1850 from p. 96, Austria, 17,540,362; p. 132, Belgium,
4,403,222; p. 184, Denmark, 1,424,000; p. 216, Finland, 1,628,883; p.
250, France, 35,630,000; p. 288, Germany, 35,303,000; p. 322, Greece,
1,005,966; p. 382, Iceland, 60,001; p. 414, Ireland, 6,878,000; p. 474,
Luxemburg, 191,150; p. 506, The Netherlands, 3,043,732; p. 536, Norway,
1,391,941; p. 596, Portugal, 3,811,191; p. 628, Spain, roughly extrapolated
as pop_1858 – (pop_1866 – pop_1858), 15, 080,000; p. 656, Sweden,
3,461,914; p. 695, Switzerland, household members, 2,392,740; p. 734,
England and Wales, a part of Great Britain, 17,773,000; and p. 738, Scot-
land, a part of Great Britain, 2,873,000. Gernet-Foster, History, p. 554
about concurrent rebellions, the T'ai P'ing rebellion was most important,
and additional rebellions of the Nien and Muslims, p. 558 about massacres
and 20 to 30 million dead. Boulger, China, vol. 2, pp. 216–7 about back-
ground of diving claimant to ‘Dragon Throne’, vol. 2, pp. 213, 216 about
pillage by rebels, p. 244 about pillage by Emperor's soldiers. Carol Bene-
dict, Bubonic Plague in Nineteenth-Century China (Stanford, California:
Stanford University Press, c1996), pp. 1–2 about the nature of the
pandemic and effected areas, and pp. 37, 47–51 about causes of the spread
to likely include movements of refugees and troops.
I have not found a comprehensive source on Chinese coolie labor
except P. C. Campbell's Emigration limited to the British Empire and Cali-
fornia. The case for debt-bondage and credit-ticket systems of Chinese
coolies in the native states of Indochina and in the Dutch East Indies, a.k.a.
Netherlands India, is made here by reconciling the following collection of
discrete evidence, the well-understood proclivities of the Chinese in Singa-
pore, and the general nature of those proclivities known with the ardently
autonomous nature of all Chinese communities in foreign lands through
the 19th century. Lyman, “Conflict and Web,” p. 476 with fnote 8 about
the Kapitan-China system in the British, Dutch, and French colonies in
Southeast Asia and Oceania, and for the lead to the next two sources.
Wong, Gallery, pp. i–ii, 1–2, 6, 30, 39 about Kapitans China in British and
Dutch colonies. W. E. Willmott, The Political Structure of the Chinese
Community in Cambodia (New York: The Athlone Press, 1970) p. 2 about
the widespread use of Chinese leaders by European colonizers in the East,
p. 15 about a Chinese class of taxation in Annam (now part of Vietnam)
described as ‘those who had just arrived and had not yet a secure position’
in the 1820s before French colonization, something suggestive of sinkhehs
and so debt-bondage, p. 146 citing G. William Skinner, Chinese Society in
Thailand: An Analytic History (Ithaca: 1957) pp. 120, 124–5 about encour-
agement of Chinese immigration in Bangkok, Thailand during the 18th
and 19th centuries for the farmed tax revenues from the Chinese with
habits of opium, alcohol, and gambling, something suggestive of debt-
bondage, p. 151 about the rise of secret societies in Java in the late 1800s
and about the author being unaware of any source describing Chinese
social organization in 19th-century Java, pp. v–vi about the author's profi-
ciency in Mandarin, Cantonese, French, and English, but no mention of
Dutch, and p. 156 about Chinese immigrants to Dutch Java coming as
individuals and small groups, but a time frame is not given. J. S. Furni-
vall, Netherlands India: A Study of Plural Economy (New York: The
Macmillan Company, 1944) pp. 8, 89, 258 with page 89 via Wong,
Gallery, p. 39, endnote 2 for Chinese headmen in Dutch Java, p. 181 about
debt-bondage made illegal in Java in 1860, about the start of gradual aboli-
tion of debt-bondage in the Outer Provinces in 1872, and about the expan-
sion in Dutch East Indies 1821–51 of legal penalty against servants for the
‘non-observance of agreements,’ suggestive of contract labor, pp. 181–2
about labor having shifted from domestic service to ‘industrial’ production
and the employment of thousands of Chinese coolies on tobacco planta-
tions in 1879, p. 182 about the ‘legal control’ of Chinese coolies given in
1880 to employers, presumably white, and p. 183 about recruitment of
labor by headmen, plausibly Chinese, for planters and the Dutch Govern-
ment. Campbell, Emigration, pp. 7–8 about the redirection of Sinkhehs
from Singapore to Dutch Sumatra and the kidnapping of Chinese in Singa-
pore and Penang to work on Dutch plantations by Chinese brokers and
secret societies, and the Chinese agent buying redirected coolies for a
mining interest in Dutch Sumatra, in the 1870s, and pp. 27–8 about scant
and inadequate information about Chinese coolie systems in Canada,
Australasia, and California. De Bary, Sources, p. 649 about the lack of
information concerning Chinese secret societies because they are secret
and ‘because scholars have regarded them as unworthy of attention.’ S.
Abeyasekere, “Slaves in Batavia: Insights from a Slave Register” in
Slavery, Bondage and Dependency in Southeast Asia, ed. Anthony Reid,
(New York: St. Martin's Press, 1983), pp. 294–5 for mention of Chinese
coolies to Batavia, Java in the 17th century, and Chinese immigrants to
Batavia in the 18th, and p. 300 about indirect Dutch rule of Chinese in
Batavia via Chinese captains and lieutenants chosen from among the
wealthiest Chinese, and about ‘the lack of research on the Chinese in
Batavia.’
39 para: debt,
40 para: California
Lucie Cheng Hirata, “Free, Indentured, Enslaved: Chinese Prostitutes in
Nineteenth-Century America,” Signs, Vol. 5, No. 1 (Autumn, 1979), pp. 5,
8–13 about prostitution in and near San Francisco, p. 11 citing U.S. Indus-
trial Commission, Report, 21 vols. (Washington, D.C.: Government
Printing Office, 1901), vol. 15, p. 762 and O. Gibson, Chinese in America
(Cincinnati: Hitchcock Printers, 1877), pp. 146–54 about colluding
lawyers construed here as bribery, and pp. 10, 12 about customs officials.
Stanford M. Lyman, “Conflict and the Web of Group Affiliation in San
Francisco's Chinatown, 1850–1910,” Pacific Historical Review, Vol. 43,
No. 4 (November 1974), pp.475–7 citing Lyman, “The Structure of
Chinese Society in Nineteenth Century America,” Ph. D thesis, (Berkeley:
University of California, Berkeley, 1961), pp. 272–6 about unmatched
autonomy construable as de facto authority, pp. 488–9 with citations about
bribed police and court interpreters, pp. 476–7, 479, 485 with citations
about amalgam and hui kuan description, pp. 480–1 about Chinese Six
Companies, pp. 474, 490–1 about tong wars, and p. 476 about naturaliza-
tion (and the vote) denied the Chinese. Sandmeyer, Anti-Chinese Move-
ment, p. 15 about the Pacific Mail Steamship Company, subsidized by
government, entering the China trade to include coolie passengers in 1866.
Canadian Paper 54a, Chapleau's Report for Roman pagination, pp.
lxxxii–lxxxv about Chinese testimony suborned with threats of violence, p.
xlii about all Chinamen with rare exception being able to read and write, p.
xliv about wholly illiterate mandarins who had purchased office—citing
Boulger, History of China, vol. 3, p. 323 but from an edition published by
1885 and consider that p. xl cites the same source, vol. 2, p. 209 about the
pig-tail that is similarly covered in Boulger, The History of China (1898),
vol. 1 p. 514—p. 187 about a very large percentage of Chinese, perhaps
generally or those in the United States, that read and write a little, as
misleadingly summarized from testimony of Frederick F. Low, former
U.S. minister in China, p. 189 about most coolies in the recruiting districts
of China not being able to read, at least the work advertisements, and
about the general condition of coolies improved by migration from China
to the States, summarized from testimony of Thomas H. King, former
merchant in China, p. 358 about Chinese laborers for the most part
knowing only a few written characters specific to a particular trade,
summarized from testimony of Thomas W. Jackson, p. lxxxv about return
of Chinese, via steamboats, controlled by the Six Companies, p. 181 about
the Six Companies managing the affairs of coolies, assenting to the depar-
ture of coolies only if debt free, and the arrangement with the Steam Navi-
gation Company, summarized from statements of Frank M. Pixley, p. 186
about the debt-free requirement summarized from testimony of Frederick
F. Low, p. 23 via Campbell, Emigration, p. 35, fnote 1, but there having
substituted ‘75’, for the quote of a chief of police made in 1884 but origi-
nally the end of a longer sentence, p. 22 about secret societies of whites
existent before 1884 that had intended to drive the Chinese from San Fran-
cisco by murder and robbery, according to the same chief of police, p. 183
about Irish hostility toward Chinese and a hint of economic rivalry, from a
summary of, it turns out, commentaries of Mr. Brooks and Mr. Pixley, p.
360 about blacks (of California) in ‘contact’ with whites and more
regarded than Chinese, summarized from testimony of Lewis M. Foulke,
pp. cxxxi–cxxxii about no interest of Chinese in the politics of host coun-
tries if not generally, and p. cii but from Gray's Report in this instance
about no interest of Chinese in American politics, from testimony of San
Franciscan merchant William F. Babcock given in 1884.
Canadian Paper 54a, Chapleau's Report, pp. xli, lxv, interestingly,
about a Chinese military attaché in Paris stated circa 1881 that a Chinese
laborer could live on four cents a day, presumably in the monetary unit
then used in Canada and possibly determined from Revue des deux
Mondres (15 June 1881). Canadian Paper 54a, Appendix A, pp. 179–360
is an abstract of evidence gathered by a committee of the U.S. Congress in
1876 documented by U.S. Senate Report 689, dated 27 February 1877
(44th Cong., 2nd sess.), serial volume number 1734. S.rp.689 (44–2)
1734, dated 27 February 1877, pp. 4, 65 about the person Frederick F.
Low, pp. 65–92 for the testimony of Mr. Low, pp. 4, 92, 108 about the
person Thomas H. King, pp. 92–124, 124–6, 1114–6 for the testimony of
Mr. T. H. King, p. 89 about Chinese literacy, misleadingly summarized by
Canadian Paper 54a on page 187, regarding the Chinese in San Francisco,
and worded: “A very large percentage can read and write a little, but it is a
mistaken notion that they can read and write to any very large extent.”, p.
114 about no Chinese interest in American politics and the inability of
coolies to read their contracts, p. 1121 about Chinese laborers for the most
part knowing only a few written characters specific to a particular trade
from testimony of Thomas W. Jackson, pp. 82–3, 176, 350, 406 about an
arrangement with the steamship companies against taking coolies with
debt as passengers and the Pacific Mail Steamship Company being subsi-
dized by the U.S. Government, p. 102 about steamship companies
embarking coolies at Hong Kong for the United States and violating the
capacity limit prescribed by U.S law, including the Pacific Mail Steamship
Company, pp. 1133–5 about the opinion that blacks in California were
‘superior’ to the Chinese there owing to ‘contact’ with whites, from testi-
mony of Lewis M. Foulke, and p. 96 about the general condition of coolies
improved by migration from China to the States but nevertheless regulated
by ‘a system of bondage-labor.’ The most compelling recollection of the
coolie trade to California, or anywhere, I have found is the testimony of
San Franciscan merchant Thomas H. King who, lived, worked, and trav-
eled in China for 10 years, given in Senate Report 689, pp. 92–126, 1114–
6 and summarized later by Canadian Paper 54a, pp. 188–195. Hucker,
China's, pp. 6, 9 about Chinese dialects. U.S. Senate Miscellaneous Docu-
ment 34, dated 1 February 1870 (41th Cong., 2nd sess.), serial volume
number 1408, a memorial of the Anti-Coolie and Anti-Monopoly Associa-
tion of San Francisco, California expressing opposition to the potential
grant of a additional half a million dollars per annum in subsidy to the
Pacific Steamship Company—yes, without the word Mail—and also
expressing the charge that the existing subsidy of half a million dollars per
year was enjoyed by the Company ‘under the poor pretense of carrying the
China mail between San Francisco and Chinese and Japanese ports.’
Hamilton A. Hill, “The Chinese in California,” Penn Monthly, Vol. 2
(April 1871), p. 181 about the wages an employer paid in Greater San
Francisco. Richard H. Dillon, The Hatchet Men: The Story of the Tong
Wars in San Francisco's Chinatown (New York: Coward-McCann, Inc.,
c1962), pp. 16–7, 21 for tong dominance settled by violence beginning
circa 1880, p. 44 about roughnecks in San Francisco who were hostile
toward the Chinese being mostly Irish, and p. 14 about Chinatown being
‘truly China in San Francisco’ in the latter half of the 19th century. Fite,
Conditions, pp. 187, 189 about Irish fighting for lowest economic rung in
the Northeast during the Civil War. The so-called Mollie Maguires were
Irish-Catholics in Pennsylvania during the 1860s and 1870s. Morse, Rela-
tions, vol. 2, pp. 166–7 about coolies being illiterate, and pp. 177–8 for
dichotomy. Burlingame, “Invasion,” p. 689, col.1 for dichotomy. S. W.
Williams, “Treaties,” p. 305 for dichotomy. Trottman, Union Pacific, pp.
64–5 about conflict between Chinese coolies with the Central Pacific and
the Irish(-American by naturalization?) laborers with the Union Pacific,
and about the final spike of Californian gold driven at Promontory, Utah
on 10 May 1869. David Alan Johnson, Founding the Far West: Cali-
fornia, Oregon, and Nevada, 1840-1890 (Berkeley: University of Cali-
fornia Press, c1992), p. 242 about the completed railroad perfecting the
national market for light manufactures, devastating the availability of jobs
and the strength of wages for white Californians, undermining consumer
spending, forcing a demand for cheap labor, and releasing Chinese labor
once employed (by the Central Pacific) for the San Franciscan labor
market—the Irish workers of the Union Pacific would have become
equally available somewhere, and the entire U.S. labor force had become
pooled into nationwide competition. Campbell, Emigration, pp. 31–2
about company certificates permitting coolies to sail home, p. 2, for
indebted Chinese laborers being the minority of the Chinese emigrating to
the Straits, and pp. 33–4 for Chinese laborers indebted via the credit-ticket
system being the majority of Chinese emigrating to California. A. Reid,
“Introduction: Slavery and Bondage in Southeast Asian History” in
Slavery in Southeast Asia, pp. 11–2 about 19th-century Europeans empha-
sizing for political correctness the difference between actual slavery and
debt bondage and the fallacy of such distinction regarding those social
institutions of Southeast Asia predating European colonization.
41 para: wealth
Morse, Relations, vol. 1, p. 47 about Spanish-ruled Philippines, and pp.
172–3 about adoption of tobacco smoking by China around 1620. David
Anthony Bello, Opium and the Limits of Empire: Drug Prohibition in the
Chinese Interior, 1729–1850 (Harvard University Asia Center: Cambridge,
Massachusetts, 2005), p. 143 about the introduction of tobacco, for
smoking, probably not before 1560 and not after 1637, pp. 119–20, 122–3,
149–51 about the refinement to the decoctive process yielding the far more
potent form of opium as an unadulterated paste, popularized in the Chinese
market around 1800. Hsin-pao Chang, Commissioner Lin and the Opium
War (Cambridge, Massachusetts: Harvard University Press, 1964) or (New

York: W. W. Norton & Company, Inc., 1970)—found via Bello, Opium—
p. 34 about the characteristics of opium consumers in the 19th century, p.
16 for the stifled leisure class as a partial explanation to the opium addic-
tion anomalous to China, p. 85 about the Hu-Kuang circuit as part of a
system of censorship that must have been stifling, and p. 17 about the
quickly lethal withdrawal from opium, distinction of consumptive form
not made.
41 para: Canton
Morse, Relations, vol. 1, p.173 about first imperial anti-opium edict in
1729, pp. 173–5 about century-old importation of legal, medicinal opium,
pp. 63–4 about bulk of foreign trade, p.67 about decree in 1757, pp. 74–8
about integral association of Whampoa and Macao (Macáu in Portuguese),
map opposite p. 1 for proximity with Macao, map opposite p. 144 for
Whampao, pp. 43–6 about Macao increasingly dominated by the
Portuguese, p. 14 about imperial Hoppo as Superintendent of the Custom
House in Kwangtung Province, p. 68 about chartered Hong merchants
a.k.a. the Co-hong, and pp. 175–8 about procedural change by 1800 to
smuggle opium within Canton System. Chang, Commissioner Lin, p. 16
about opium traditionally swallowed raw as medicine, and p. 4 makes a
cogent distinction between ‘hong merchants’ and the ‘Cohong’, and his
spelling and capitalization have been adopted, but the uncapitalized form
of ‘hoppo’ as on his page 5 has not been adopted since I prefer to capi-
talize it as a title (though unofficial) or else a fanciful appellation. Bello,
Opium, pp. 116–7, 309–12 about first verifiable imperial decree in 1729, p.
117 about expansion of regulations to Formosa, pp. 142–3 about opium
traditionally ingested as medicine, pp. 118–20, 148–50 about dubious
distinction between legal crude opium and the illegal smoke of opium and
tobacco Westerners called madak, pp. 121,135 about foreigners not held
accountable to anti-opium law of China, p. 117 about focus on the coastal
region, and p. 308 about provincial edict of prohibition including promul-
gation through ‘Guangzhou superintendent of trade.’ Michael Greenberg,
British Trade and The Opening of China 1800-42 (Cambridge: Cambridge
University Press, 1951 or 1969), p. 57 puts the distance between
anchorage at Whampoa and the Factories at Canton at twelve miles, and
pp. 46–8 about two exceptions to Canton System, the Portuguese at Macao
and Spanish at Amoy. Anti-opium edicts declared in 1796 and 1800
according to Morse, Relations, vol. 1, p. 175 are disputed by Bello, Opium,
p. 310. Gernet-Foster, History, p. 534 lists years of edict-like ‘vetoes’ as
1729, 1731, 1796, 1813, 1814, 1839, and 1859. Frederic Wakeman, Jr.,
chapter 4, “The Canton Trade and the Opium War,” in The Cambridge
History of China, Vol. 10, ed. John K. Fairbank (Cambridge: Cambridge
University Press, 1978), p. 171 asserts opium imports were prohibited in
1729. The account by Bello regarding Chinese prohibitions against opium
has been followed in this work.
42 para: small
Greenberg, British Trade, pp. 108–9 for the identification of the three
main varieties of opium, Bengal being the foremost variety, Malwa
produced in native Indian states and shipped by Portuguese from Goa and
Daimaun, and the less popular Turkey opium shipped by Americans over a
greater distance, and pp. 126–7 about Malwa opium to Macao. H. B.
Morse, Chronicles of the East India Company Trading to China, 1635–
1834, in 4 volumes (Cambridge: Harvard University Press, 1926), note a
later 5th volume exists, vol. 3, p. 322–3 citing per page 307 the record
book of the Select Committee in Canton for the season 1817–18 and found
via Greenberg, British Trade, p. 110, fnote 4 about the corruption fund and
levy in dollars of unspecified type, and p. viii about general use of the
Spanish dollar at Canton and in the related accounts. Greenberg, British
Trade in the bibliography lists Chronicles as five volumes published 1926–
9, meaning an additional 5th volume must have been published in 1929.
Morse, Relations, vol. 1, p. 176 about Malwa produced in the independent
native states of Rajputana (western) and Central India, p. 207 about under-
stated Turkey opium volume by Americans, pp. 207–10 about estimated
volume of the three main types of opium. Bello, Opium, p. 47 has a map
showing where Malwa opium was produced.
42 para: well
Bello, Opium, pp. 45–7 about the English East India Company as the
governance of as much of India as could be had. Morse, Chronicles, vol.
1, p. ix about ‘the United Company of Merchants of England Trading to
the East Indies, commonly referred to as the Honourable (English) East
India Company.’ Philip Lawson, The East India Company: A History
(London, Addison Wesley Longman Limited, 1993), pp. 17, 19, 55–6 for
reorganization of the Company, with the inferred name change to ‘United
Company’, and pp. 60–1, 97 about tea preoccupation developed in the
eighteenth century. Greenberg, British Trade, p. 105 about assuming
monopoly of sale in 1773 and ‘manufacture’ in 1797, p. 22 about monopo-
lizing brokerage in 1780, p. 3 about tea preoccupation and Parliamentary
requirement of a year's supply of tea in stock, p. 16 for the critical impor-
tance of the Country Trade, pp. 10–1 citing H. W. Coates, The Old
Country Trade (1911), the preface (but see Coates below) for the definition
of Country Trade as within the East where stated from the end of the
seventeenth century until in the mid-19th century the advent of ‘steam’,
taken to mean steam-powered shipping, p. 20 for a usage of Country Trade
and Country merchants in the exclusively private sense, pp. 3, 12, 77–8,
fnote 4 of p. 109 about privilege tonnage, pp. 18–9, 23 about the private-
trading prerogative of resident supercargoes. W. H. Coates, The Old
‘Country Trade’ of the East Indies (London: Cornmarket Press, 1969), a
facsimile reprint of the same but (London: Imray, Laurie, Norie & Wilson,
Ltd., 1911); pp. vi–vii for the term ‘Country Service’ generally accepted
‘to include vessels owned by Englishmen resident in India, as well as
purely Indian ships’ and used from the end of the 17th century until the
middle of the 19th century, when steam replaced sail, and the close relation
to the Orient and to the undefined term ‘Country Trade’, found via Green-
berg, British Trade, p. 10; and p. 1 about the ‘Country Trade’ plying the
waters from the east coast of Africa to the east coast of China. Morse,
Relations, vol. 1, p. 174 it would seem about monopolizing brokerage in
1780, and p. 87 about ‘English Country merchants’ licensed and unable to
trade with the home country. Frederick Madden, ed., with David Field-
house, Select Documents of the Constitutional History of the British
Empire and Commonwealth, Volume 1 (of an 8 volume series), “The
Empire of the Bretaignes”, 1175-1688: The Foundations of a Colonial
System of Government (Westport, Connecticut and London, England:
Greenwood Press, 1985), pp. 234–7 via Lawson, The Company, p. 4 about
the trade monopoly, initially English, from the Cape of Good Hope to the
Straight of Magellan, chartered 31 December 1600.
The definition of country trade by Greenberg seems to assert the advent
of steam is in no way coincidently timed with the complete abolition of the
Company's trade monopoly on 22 April 1834. Greenberg said on page
103, “Finally, the advent of the steamship provided the technical pre-requi-
site for the fusion of the two branches of the China trade, the ‘Country’
and the English trade.” That advent is anecdotally chronicled to roughly
1834 (p. 103 with fnote 2): the steamer Forbes went into the mouth of the
Pearl River in 1830, ‘to the astonishment of the natives’ suggesting
novelty, and ‘the first steamer to go right up the river was the little 58-ton
Jardine in 1835,’ although Chinese crowded around the Jardine's engine
might suggest a long-standing novelty in places not upriver. Chang,
Commissioner Lin, p. 8 places the Pearl River near the Canton factories in
the southern suburb of the city.
43 para: veneer
Greenberg, British Trade, pp. 19–20, 24 about dissatisfaction with
consignment to the Company supercargoes, pp. 25–7 about Reid's
successful artifice, p. 47 about rivalry with Portuguese and British occupa-
tion in 1808, pp. 26–7 citing Morse, Chronicles, vol. 2, p. 206 and other
pages about the fruitless appeal to the Court of Directors but year not
given, p. 18 about the Court of Directors in London, pp. 10–1, 15–6, 26
about indispensable service of the private British Country traders, p. 3
about vital nature of tea exports from China to England, p. 106 citing D. E.
Owen, British Opium Policy in China and India (1928), p. 67 about the
suggestion in 1801, p. 29 about the forbiddance in 1809 of Company
supercargoes to handle opium, pp. 15, 109, 125–6 about the license
requirement, p. 109 citing Morse, Chronicles, vol. 2, pp. 76, 89, note my
evaluation below, about the exception of 1782 being singular, p. 109 about
sales in Calcutta, and the clause added to the Country license in 1816, note
my partial evaluation of supporting citation below, and p. 16 about private
merchants as the ‘dynamic element’ and providers of funds for the tea
investment.
Morse, Chronicles, vol. 2, p. 85 via Greenberg, British Trade, p. 25,
fnote 1 quotes in regard to John Reid from record of the Council of super-
cargoes (per vol. 1, p. viii) for the 1783–84 season: “We understand he has
hitherto had a Commission in the Hon'ble Companys Marine Service at
Bengal, but has since resigned his pretentions in the Service.”, the lack of
apostrophe in ‘Companys’ is accurate, disambiguation between military
and merchant service is not made, vol. 2, p.194 about the Secret and
Superintending Committee as the superintending body of supercargoes at

Canton, p. 206 via Greenberg, British Trade, pp. 26–7 about the appeal to
the Court (of Directors) in 1793, vol. 1, pp. 215–6 about prohibition of
opium on Company ships from 1733 in response to ‘the late severe laws
enacted by the Emperour of China’ identified as the edict of 1729 against
the sale of smokable opium, vol. 2, pp. 326–7 about prohibition of opium
on Company ships from 1733 to at least 1799, pp. 76–9 via Greenberg,
British Trade, p. 109, fnote 3 about the Company selling its opium in
China on consignment by deceptively engaging the private warship
Nonsuch, and trying to sell in China any opium not first sold along the
Malay Peninsula with the sloop Betsy, but she was captured in a Sumatran
river beforehand, and vol. 1, p. ix about the Company's trade as being a
truly English trade from Canton to London, surely to include the tea trade.
Fred Harvey Harrington, “United States: 25. The Founding of the
Nation, 1763–1815,” EA–99, vol. 27, p. 710, col. 2 about foreign support
of the American Revolution, and p. 712, col. 1 about British concession in
1782. Greenberg, British Trade, p. 109, fnote 4 is annotated to suggest an
explanation of several things to include the clause added in 1816 to the
Country licenses and fnote 4 refers precisely to Morse, Chronicles, vol. 2,
pp. 316, 325, to Select Committee of House of Commons, 1840, Q., 1405–
22, and to Yrissari & Co., Letter Book, 22 October 1822; I have examined
only the first source Chronicles and determined its vol. 2, p. 316 in
conjunction with p. 317, and p. 325 support the point that the Company
wished to distance itself from the opium trade in China and not any other
point from the tagged text. I was able to find Morse, Chronicles, vol. 3,
pp. 250–1 about a reissue of regulations in 1816 prohibiting Country ships
from carrying ‘Opium the property of foreigners’ except that owned by
Moradores, a Spanish word translating as (male) inhabitants, presumably
meaning exemption for the Spaniards residing at Canton, and vol 4, pp.
358–61 about the struggle in 1833 of Company officials at Canton to
impose control of Country ships with the licenses that enacted obedience
to their orders in theory—the two portions combined indicate regulations
were reissued in 1816 with the effect of being added to the Country
license. Mindful that I have not evaluated two of the given sources and
possibly germane others, I defer in my text to the studied formulation by
Greenberg interpreted to mean a clause was added to the Country license
in 1816.
Wakeman, Cambridge-10, pp. 164, 168 about forbidden cash exports,
cash for tea, and bills of exchange. Morse, Relations, vol. 1, pp. 176–7
about ‘periodic auction sales at Calcutta’ meaning the sales were specifi-
cally auctions. Chang, Commissioner Lin, pp. 94–5 about the views of
opium in the Western world including the general view that the opium
trade was immoral, but using sources from the first half of the 19th
century. I add that it seems to me a broader public sense of morality was
then nascent, trailing the Enlightenment, and situated to suggest industrial-
ization as a social prerequisite or catalyst. I imagine realistic for the most
part, in consideration of the timing, what Chang cites as an opposing view
by Owens, British Opium, (New Haven: Yale University Press, 1934) p.
25. I venture to guess the impugned sentence by Owens is: “To blame the
company for having refused to embark on such a course would be to
impute to the eighteenth century a standard of social ethics utterly foreign

to it.” Abraham Lincoln was born 12 February 1809. Lin Tse-hsü, the
Chinese official who would first contest the Western opium trade, was
born 30 August 1785, according to Chang, Commissioner Lin, p. 121.
44 para: quarter
Bello, Opium, pp. 120–1 about inland spread made evident circa 1810,
and p. 121 about legal provisions of 1813, moral exhortation in 1811, and
imperial warning in 1815. Morse, Relations, vol. 1, pp. 178–9 about the
crackdown in 1821, map opposite p. 1about the geography concerning
Lintin, and p. 154 about the eventual duplication of Macáu's functions at
Lintin. Greenberg, British Trade, p. 132 for greater smuggling safety at
Macáu than Whampoa, pp. 133–4 about the critical loss to Macáu of
British opium traffic, and p. ix about silver flow reversal circa 1826.
Gernet-Foster, History, p. 536 about reversal of the trade balance between
1820 and 1825.
45 para: Inelastic
Morse, Chronicles, vol. 3, pp. 339–40 via Greenberg, British Trade, p.
124, fnote 2 about the raised price of Bengal opium in 1814 (Greenberg
infers the season of 1815) due to a combination of the foreign merchants in
China, the consequent doubling or so in the combined volume over the
years 1816–18 of Malwa from Western Indian formerly in insignificant
quantities and said to have improved in quality, and of Turkey opium said
to be the same poor quality, and the drop in price of Bengal opium from
$1,300 (Spanish) in 1817 to $840 in 1818. Greenberg, British Trade, p.
132 about the 1815 prohibition ‘on Bombay ships,’ p. 109 about the
prohibitive clause added to the Country-trade ship license in 1816, p. 126
to note the unclear sentence there written, “Accordingly, the export of
Malwa from Bombay was forbidden to vessels sailing under the Compa-
ny's licence.”, the spelling with two c's is accurate and the textual context
places the temporal context circa 1813, and to note for purposes here that
the aforementioned sentence is supposed to be an anomalous hybrid of the
1815 prohibition per page 132 ‘on Bombay ships’ and the 1816 prohibition
per page 109 of ships licensed by the Company, p. 109 about the market
domination of Bengal opium in the first years of the nineteenth century,
pp. 127, 129 about purchases to corner the Malwa (and Indian) opium
market from 1821 to 1824, pp. 129–30 about the strategy to limit Malwa
production and export at least roughly from 1826 to 1831, pp. 130, 134
about ‘smuggled’ Malwa, pp. 130–1 about the successful transit duty
system begun in 1831, the advantage of Bombay over Damaun and Goa,
the circuitous route to Damaun, and the inferred irrelevance of Goa, p. 47
for the definition of the ‘slack season’ when the Canton agents were retired
to Macáu as April to September, and pp. 47, 132, 135–6 about decline of
Macáu to an off-season resort in the early 1830s. Morse, Relations, vol. 1,
p. 210—cited without page number by Greenberg, British Trade, p.130—
has a table showing the seasonal volumes of Malwa opium from Bombay
and Damán; the dearth of Malwa opium from Bombay relative to that from
Damán to be expected of a restrictive policy that is clearly failing is

therein construable as the seasons and roughly the years from 1828 to
1831, inclusive.
Campbell, Emigration, pp. 152–3 about Macao as in decay in 1851 and
a booming coolie port in 1866. C.1212, indicates the coolie trade at
Macao began in 1851, incidentally. David Edward Owens, British Opium
Policy in China and India (Archon Books, 1968), pp. 92–4 about the
seizure policy negotiated with native states to block the routes of unregu-
lated Malwa, and p. 89 about the circuitous but prevailing route to Malwa
using camel and boat and taking two months.
45 para: prerogative
Bello, Opium, pp. 125–7 about the first empire-wide anti-opium regula-
tions in 1830 and 1831, and pp. 131–5 about continued ineffectiveness ,
legalization debate in the mid-30s, the silver drain as the primary problem,
and the determination to escalate policy to absolute prohibition. Morse,
Relations, vol. 1, pp. 87–8 about the private English merchants desirous of
free trade and the complete abolition of the Company's monopoly on 22
April 1834, pp. 173–5 about the growth of Chinese imports of opium from
1729 to roughly 1800, p. 209, table D has data showing a generally flat
trend of import volume over the period 1800–1821, and p. 210, table E has
data showing a nearly sevenfold growth over the period 1821–39.
Boulger, China, vol. 2, p. 64 about the expiration of the trade monopoly
with China in April 1834. Gernet-Foster, History, p. 533, table 19 for data
showing the longstanding growth of opium imports to China over a period
from 1729 until late in the nineteenth century.
46 para: storm
Chang, Commissioner Lin, pp. 97–8 about the new policy on opium
declared from Beijing 15 June 1839 and the 18-month grace period for
Chinese smokers but not Chinese producers and distributors. Bello,
Opium, pp. 136–7 about the new regulations promulgated in June 1839
and the 18-month grace period for Chinese smokers, producers, and
distributors alike.
46 para: others
Morse, Relations, vol. 1, pp. 215–7 about decrees at Canton beginning
18 March 1839, p. 229 about surrender of opium, pp. 229–30 about British
evacuation of Canton, pp. 246–7 about beginning of the First Opium War,
and pp. 290–1 about simultaneous trade and war. Gernet-Foster, History,
p. 541 about years and name First Opium War. In certain instances here
and following where Morse uses terminology like ‘English’, as in to whom
Hong Kong was ceded or with whom treaties were made, the terminology
substituted here is British, the United Kingdom, etc. The British-Chinese
treaties do refer to British subjects, Officers, merchants, etc. The Irish,
consumed by a veritable enslavement of their Catholic majority, had at
best scarce participation in the East, but Scots pervaded British involve-
ment in the East. For Scots see for example Turnbull, Singapore, 2nd ed.,
pp. 15, 25 and Lawson, The Company, p. 72 citing G. K. McGilvary, “East
India Patronage and the Political Management of Scotland 1720–1774,”
Open University Ph. D. thesis, 1989, unpublished, pp. 38–41, and p. 148.
Chang, Commissioner Lin, pp. 97–8 about the new policy on opium
declared from Beijing 15 June 1839 and promulgated to Canton July 6th,
and the additional law as requested by Lin.
46 para: hands
Morse, Relations, vol. 1, p. 298 for the four treaties and dates, pp. 333,
59–62 about first treaty regulations except for frontier regulations with
Russia, pp. 301–2 about taking Hong Kong, pp. 321–2 about reactionary
negotiations of Portuguese with China regarding Macao, pp. 330, 414
about renegotiation, p.330 about no mention of opium in English treaties,
p. 321 citing Chinese Repository, May 1843 for the quote, and p. 288 for
status as plenipotentiary.
47 para: management
Morse, Relations, vol. 1, pp. 414–8 about thwarted efforts, p. 422 about
details of arrest, p.423 about Chinese ownership, pp. 424–5 about pending
renew, pp. 422 about piracy charge, arrest, and the author's phrase ‘act of
piracy’, pp. 427–9 for escalation to battle, pp. 483–4 about home govern-
ment decision and objectives, pp. 480–1, 483 about French redress, pp.
492–3 about blockade, pp. 485–6 about the U.S. position, pp. 499–500
about beginning of assault, and p. 504 about a proclamation to Cantonese
announcing allied control.
48 para: provinces
Morse, Relations, vol. 1, pp. 511–2 for via the Peiho river, pp. 525–9
about signing treaties June 1858 and brunt of diplomacy, and p. 576 about
requiring exchanges in Beijing. Boulger, China, vol. 2, p. 580 for article
LI of British Treaty of Tientsin but ‘I’ in double quotes per the source.
48 para: incontestable
Morse, Relations, vol. 1, pp. 576–81, note fold-out map facing page
590, about river defenses and battle, p. 587 about intent, p. 527 about the
refractory French insisting on an exchange at Beijing, p. 580 about the
privilege of exchange in Beijing granted to the American legation for the
Treaty of Tientsin but refused since subject to the kowtow, p. 617 about
Chinese resistance over the 25 years ending 1860 having the general
purpose to prohibit opium imports, to reject national equality and the
protection of foreigners from Chinese jurisdiction, and to refuse imple-
mentation of a known and moderate tariff, pp. 586, 589 about postpone-
ment, p. 607 about occupation of Beijing, p. 612 about accords in Beijing,
and pp. 539, 554–5 about the legalization of foreign opium imports
initially conceded 13 October 1858, the year given on page 539 along with
6 November 1858 as the date the opium question was settled.
49 para: admirable
J. Y. Wong, “The ‘Arrow’ Incident: A Reappraisal,” Modern Asian
Studies, Vol. 8, No. 3 (1974), pp. 373–4 about the various names of the
war fought 1856–60 and an assessment of their merits. Morse, Relations,
vol. 1, p. 422 about involvement of the Arrow crew in an act of piracy, p.
426 about interest reduced to three, pp. 557–8 about eminent trade posi-
tion, pp. 414, 488, 544–6 about British interest in legalizing opium,
depicted as passive, judge for yourself, pp. 550–2 about vocal condemna-
tion, p. 500 citing George Wingrove Cooke, China: being the ‘Times’
Special Correspondent from China in the years 1857–58 (London: G.
Routledge & Co., 1858), p. 324 for the quote about coolie service, and pp.
539–40 for the footnote quote of Morse himself. Gernet-Foster, History, p.
575 for the footnote quote of Gernet as translated by Foster. Campbell,
Emigration, p. 153 about piracy yielding coolies. Bello, Opium, pp. 32–3
says ‘it was concern over state revenues, rather than genuine concern over
the plight of addicts, that ultimately drove the opium policies of both
imperial states.’ Chang, Commissioner Lin, pp. 91, 119 about British
interest in legalizing opium prior to the First Opium War, and p. 15 about a
generalization but of the First Opium War: “In the broad sense, the Opium
War was a clash between two cultures,” and for an opinion on the impor-
tance of opium: “The opium trade was an indispensable vehicle for facili-
tating this expansion and the two could not be separated. Had there been
an effective alternative to opium, say molasses or rice, the conflict might
have been called the Molasses War or the Rice War. The only difference
would have been a matter of time *x*x*.”
The contract coolie trade incited violence directed at foreigners in
general and thereby endangered the opium and tea trades. Though many
British interests, especially those in London, ran counter to piracy for
coolies, defending the sovereignty of ships flying the British flag, even
Chinese vessels, may have been seen as critical to defending British
commercial operations. The remainder of this paragraph cites documenta-
tion about ramifications of the coolie trade. Nothing herein establishes a
connection between the coolie trade and the lorcha Arrow. Campbell,
Emigration, pp. 101–4 about resentful Chinese vigilantes virtually stop-
ping the coolie trade and endangering the general trade in Amoy in 1852
and some years thereafter, p. 104 with p. 100 about the animosity against
the contract coolie trade seen by the British Trade Commissioner in 1852
as counter to British opium interests, pp. 104–5 about the rebellious nature
of coolies dissuading captains from the contract coolie trade in the early
1850s, seems to exclude an aversion to shipping credit-ticket coolies to
California, and pp. 117–9 about the ire of the Chinese at Canton and
Shanghai roused by the contract coolie trade and endangering foreigners
there generally in 1859. Morse, Relations, vol. 1, pp. 401–2 about the
emigration riot at Amoy in 1852, pp. 403–11 about widespread piracy and
countermeasures ending with particulars of British protection afforded the
lorcha Arrow, pp. 419–22 about animosity to foreigners in Shanghai 1848–
1852, the forceful boarding of a pilot-boat under the American flag in
Shanghai harbor in 1854, the reappearance in 1856 of placards at Canton
expressing threats to foreigners, all prefacing the account of the Arrow
incident, and vol. 2, p. 178 quoting Wm. Fred. Mayers, N. B. Dennys and
Chas. King, The Treaty Ports of China and Japan (Hongkong: A. Short-
rede & Co., 1867) s.v. Macao, p. 228 about ‘villagers or fishermen forcibly
kidnapped along the coast, chiefly by lorchas manned by half-castes from
Macao.’
50 para: on
In the footnote, Bello paraphrased Carl A. Trocki, Opium, Empire and
the Global Political Economy: A Study of the Asian Opium Trade, 1750-
1950 (London: Routledge, 1999) pp. 27–9. Charles Petrie, “Great Britain
and Northern Ireland: 26. Oligarchy and Empire (1714–1815),” EA–99,
vol. 13, p. 322, col. 2 for British supremacy at sea established in 1805.
Thomas W. Krise, “English Slave Trade,” HEWS, vol. 1, p. 255, col. 1
about the British superpower and the critical support of the Atlantic slave
and sugar trades, and p. 253, col. 2 for the English/British accounting for
half of the Atlantic slave trade, apparently half of the trade's entirety.
Davis, Inhuman Bondage, pp. 15, 232–4 about the British as the leading
nation of the Atlantic slave trade 1680–1808 and the leading abolitionist of
the slave trade thereafter. Philip D. Morgan, “Slave Trade: Transatlantic,”
MEWS, vol. 2, p. 839, col. 2 and p. 840, col. 1 about the British having the
most transatlantic slave voyages and twice that of nearest rivals the
French, and about Liverpool, England as the port with the most launched
transatlantic slave voyages.
I have been unable to find an economic ranking of the British slave
enterprise among world history's imperial-national slave enterprises. Of
Western slave enterprises, I point out that Roman economic output had the
handicap of far inferior technology compared with the later European
powers of the Atlantic slave trade. Orlando Patterson, foreword of CWS,
p. ix, col. 1 states: “However, it is in Western civilization that slavery
attained its greatest structural and cultural significance. With the possible
exception of medieval Korea, it is only in the West that slavery became a
major economic institution.” Brian Catlos, “Trans-Saharan Slave Trade,”
HEWS, vol. 2, p. 648, col. 2 about the Atlantic slave trade dwarfing the
Saharan trade, suggestive that the Arab/Muslim trade was dwarfed but
trade across the Red Sea may constitute an additional component. Owens,
British Opium, pp. 1–2, 10 about an opium trade before the British ruled
India, p. 18 about the opium enterprise taken to new scale in the nineteenth
century by Europeans, and pp. 80–3 about the British dominance of opium
trade to China, which was the critical market of enterprising Europeans.
“United Kingdom,” The World Factbook 2005, U.S. Central Intelli-
gence Agency, online version as downloaded May 2006 states: “Great
Britain, the dominant industrial and maritime power of the 19th century,
played a leading role in developing parliamentary democracy and in
advancing literature and science.” Franklin W. Knight, “Slavery,” EA–99,
vol. 25, p. 23, col. 2 and p. 24, col. 1 for a historical account of abolition
with the English people and British government at the forefront. Morse,
Relations, vol. 1, p. 363 and vol. 2, p. 165 about the first foreign ship of
the Chinese coolie trade said to have been the British ship Duke of Argyle
departing from Amoy on 7 March 1847 for Havana, and vol. 2, pp. 180–1
about Chinese coolie abolition. Campbell, Emigration, p. 114 about a near
British monopoly of the Chinese coolie trade circa 1855, but p 116 about a
near American monopoly by 1860. C.1212, pp. 752–4/8–10 about the
British influence on the Chinese coolie trade from a Portuguese perspec-
tive.
51 para: prior
Morse, Relations, vol. 1, p.528 about British predominance in forged
relations, pp. 492, 500 about gunboats; vol. 2, p. 204 about residing repre-
sentation, p. 214 about British treaty revision slated for 1868, p. 116–8 and
51 with ‘under these heads’ taken to include vol. 1, p. 570 about most-
favored-nation clause. Boulger, China, vol. 2, p.575 for art. XXVII. The
start of decennary chronology is not explicit in article XXVII and is
reasonably surmised as the date of signing by plenipotentiaries, 26 June
1858. Frederick Wells Williams, Anson Burlingame and the First Chinese
Mission to Foreign Powers (New York: Charles Scribner's Sons, 1912), p.
90 citing a letter from Mr. Burlingame in Shanghai to Mr. Seward from,
per p. 88, Diplomatic Correspondence of the United States—note Morse,
Relations, vol. 2, p. 189, fnote 17, quotes from what is apparently the same
letter, dated 14 December 1867 and found in Foreign Relations of the
United States, 1868, vol. 1, page 494—about recruitment of Burlingame,
p. 88 about timing of November 1867, and p. 163 about precedent.
52 para: enjoy
Williams, Anson, pp. 91 citing aforementioned letter, 114 about learning
role of two Chinese envoys, pp. 122, 134, 148 about speeches, pp. 127–8
about destination of Washington and the presidential reception 6 June, p.
172 about destination of London, p. 144 about Seward's authorship of the
treaty, pp. 103, 105–6 citing a letter from Tsung-li Yamên to Mr. Williams
(not the author) dated 7 December 1867, p. 152 about Burlingame's full
discretion in U.S. negotiations by default, pp. 145–6 citing a letter from
the Hon. Frederick W. Seward to the author (F. W. Williams) about
impeachment troubles, pp. 144, 147, and 370 to determine father-son rela-
tion, and p. 146 citing a letter from Mr. Seward to Mr. Browne dated 8
September 1868 about motion by S. Williams. The second and fourth
letters apparently are from U.S. diplomatic correspondence, either annual
volumes or the Dept. of State manuscript archives detailed on page 361 of
the bibliography. Morse, Relations, vol. 2, p. 187 for identifying the
Tsungli Yamen as the Foreign Office of China, p. 193 including fnote 36
about two other Chinese envoys and title of threesome and the name and
title of S. Williams, and p. 195 including fnote 51 about Burlington-
Seward negotiations between the presidential reception and the signing 28
July 1868. See 16 Stat. 739 for the portion of the Burlingame Treaty
giving the State Secretary's name and his singular plenipotentiary role on
behalf of the U.S. President. Warren B. Walsh, “The Beginnings of the
Burlingame Mission,” Far Eastern Quarterly, Vol. 4, No. 3 (May, 1945),
275, fnote 3 about the mission's language barrier. Walsh in p. 275, fnote 3
states that K. Biggerstaff, “The Official Chinese Attitude toward the
Burlingame Mission,” American Historical Review, Vol. 41, No. 4 (June
1936), 685 et s[e]qq holds that titles and rankings of the three were iden-
tical according to certain Chinese sources. In contrast Morse, Relations,
vol. 2, p. 193, fnote 36 reports the Chinese version of the Burlingame
Treaty attested to a seniority of Burlingame over the other two. Knight
Biggerstaff, “A Translation of Anson Burlingame's Instructions from the
Chinese Foreign Office,” Far Eastern Quarterly, Vol. 1, No. 3 (May,

1942), pp. 277–9 about possible instructions to Burlingame. Welcome to
history.
52 para: States
Williams, Anson, pp. viii–ix about posthumous obloquy toward
Burlingame. Burlingame died in 1870; Seward, in 1872. See 16 Stat. 739
for the U.S. proclamation of the Burlingame Treaty and 18 Stat. 477 for
the prohibitory act. For additional edification, Campbell, Emigration, p.
116 states: “By 1860 the contract traffic was practically monopolized by
the American clipper ships—French and Spanish vessels playing as yet
only a minor part.” Also, Mary Turner, “Chinese Contract Labor in Cuba,
1847–1874,” Caribbean Studies, Vol. 14, No. 2 (July 1974)—source found
via Plowman, “Voyage,” note 10—p. 74 states about the coolie trade
specifically to Cuba: “The subsequent development of the trade seems to
have remained largely in Cuban hands and the profits accrued to Cuban
capitalists. In this the Chinese coolie trade contrasted with the slave trade
which, although it involved important Cuban interests, was dominated by
the Americans. The Havana trade, «could not be called a Cuban trade at
all: it was financed by American capital carried in American ships, manned
by American seamen and protected by the American flag.» When the
Chinese trade was re-opened, however, in 1853 it provided, like the slave
trade, ample opportunity for speculators large and small and the conduct of
the trade in China, as in Africa, was a prolonged scandal.”
52 para: today
See 15 Stat. 708 for the proclamation.
53 para: white
Allen Nevins, Hamilton Fish: The Inner Story of the Grant Administra-
tion (New York: Dodd, Mead & Company, 1937), p. 105 for Grant's inau-
guration on 4 March 1869, and pp. 108–15 about Grant's inelegant
recruitment for the Secretary of State, initially posting Elihu B. Washburne
but within the first two weeks of Grant's presidency settling on Hamilton
Fish. See 15 Stat. 1, 15 Stat. 33, and especially 16 Stat. 1 for the start of
the 44th Congress on 4 March 1869. The Constitution of the United
States, article 2, section 2, clause 2 empowers the President with two-
thirds consent of the Senate to make treaties. “Labor in Louisiana,” New-
York Times, 5 October 1873, p. 4 col. 5, top about ‘some 275 male
laborers’ imported from China to Louisiana in 1869 by ‘owners of the
great plantations.’ “Labor Reform,” New-York Times, 26 August 1869, p.
1, col. 3 about the alleged desire of Alabama to import coolie labor.
Campbell, Emigration, p. 28 identifies emigration to the Southern States
1869–70 as contract contract. Powderly, Thirty, pp. 210–1 about the use
and threatened use of coolie labor in 1869. J. E. B., “Labor,” New-York
Times, 22 August 1869, p. 1, col. 1, middle for the quote from the labor
resolution in August, and p. 1, col. 3, middle about a speech by a black
delegate. Norman J. Ware, The Labor Movement in the United States,
1860–1895: A Study in Democracy (Gloucester, Mass.: Peter Smith, 1959),
p. 6 for the first convention of the National Labor Union in Baltimore on
20 August 1866, the second in Chicago on 19 August 1867, and p. 10 for a

(third) convention of the National Labor Union in 1869 involving the
‘negro question’.
54 para: interpretation
Press regarding Browne's criticism includes: New-York Times, 26
August 1869, p. 1 col. 1, top, p. 4, col. 3, bottom; and Nation, Vol. 11, No.
263 (14 July 1870), p. 20, col. 1, and Vol. 9, No. 224, (14 October 1869), p
309, col. 1. Morse, Relations, vol. 2, p. 201 about Browne as successor
and foremost critic, p. 430 about opinion on relations with China, and pp.
165–6 about many thousands first in 1852. Williams, Anson, p. 284 citing
letter from Mr. Browne to Mr. Fish, dated 30 June 1869 in Dept. of State
MS, vol. 26. about recommendation, p. 284 about unlimited naturaliza-
tions, p. 203 about subversion of authority, and pp. 201–2 citing letter from
Mr. Browne to Mr. Fish, dated 4 June 1869, in U.S. Dept. of State MS,
“China,” vol. 25. about careful consideration, and p. 228, including fnote
1, about exchanged ratifications. Edward L. Burlingame, “An Asiatic
Invasion,” Scribner's Monthly, Vol. 13, No. 5 (March 1877), p. 690, col. 2,
about many thousands first in 1852. Paul H. Clyde, “The China Policy of
J. Ross Browne, American Minister at Peking, 1868-1869,” Pacific
Historical Review, Vol. 1, No. 3. (September 1932), pp. 312–23 for infor-
mative description of Browne's role. U.S. Senate Executive Document
116, dated 15 July 1870 (41st Cong., 2nd sess.), serial volume number
1407, four pages about response to Senate inquiry as to whether coolies
were being imported in violation of the 1862 anti-coolie-trade law, p. 3 for
the assurance by U.S. Consul Goulding in Hong Kong that ‘I allowed no
contracts to be made before leaving here,’ and pp. 3–4 about departures of
two ships for New Orleans in 1870 with 200 and 213 Chinese laborers,
respectively. Campbell, Emigration, p. 28 makes distinction between
credit-ticket emigration to California and contract emigration to the
Southern States 1869–1870, and p. 151 for the determination that the 1862
anti-coolie-trade law ‘was evaded by a loose interpretation of terms.’ For
further consideration if inclined: Senate Report 689, p. 76 for testimony of
Low that the failure of Chinese labor on Southern plantations was due to
the Chinese not being paid and subsequently quitting, and p. 551 for testi-
mony by Vernon Seaman about there being roughly 1500 Chinese in the
South in 1873, the Alabama and Chattanooga Railroad Company not
paying Chinese laborers for work completed, and being implicated for
fearful abuse and coercion into swamps of the same unpaid Chinese, pp.
1115–6 for testimony by Thomas H. King about no knowledge of 1500
Chinese in the South nor any employed by the Chattanooga Railroad, and
about, as summarized in Canadian Paper 54a, p. 196, the use of coolies in
the South failing because the Chinese absconded.
54 para: thought
Morse, Relations, vol. 2, p. 431 for quote but double quotes in source
shown as single here.
55 para: white
tennial ed., part 1, accessed online 23 April 2007, series C104, p.108 for a
burst of Chinese immigration. Thomas J. Vivian, “John Chinaman in San
Francisco,” Scribner's Monthly, Vol. 12, No. 6 (October 1876), pp. 862–72
for example of detraction. Powderly, Thirty, p. 211 about no fault, p. 218
for quote about menace, and p. 350 about the greater menace of Southern
cheap labor kept cheap by a pool of starving, uneducated black labor (from
a statement dated 11 October 1886). Bruce, 1877, pp. 267–70 about San
Francisco mobs. Nevins, Emergence, pp. 150–2, 375 via Bruce, 1877, p.
267 about demagogic blame and once valued labor pool, but also p. 375
for the thousands of ignorant workmen responsive to incendiary agitation
and having genuine grievance with lower wages and narrowed opportunity,
p. 376 about the political shift in California around 1878, pp. 53–5 about
thousands of Chinese coolies constructing the Central Pacific. Trottman,
Union Pacific, pp. 18–22 about eminent support of railroad construction
U.S. legislation enacted in 1864, arguably for national security. See 18
Stat. 477 for the 1875 law's wording. Morse, Relations, vol. 2, pp. 196–7
about California dictating policy change. See 22 Stat. 59 for the 1882
law's wording. Used next is the abbreviation U.S.C.C.A.N. meaning
United States Code Congressional and Administrative News. U.S. House
Report 1365, dated 14 Feb 1952 (82nd Cong., 2nd sess.), serial volume
number 11575, as reprinted in 1952 U.S.C.C.A.N. 1653 at 1661, about
Chinese exclusion history and, incidentally, at 1659 is a false assertion that
pro-contract labor law was enacted and repealed in the same year. Camp-
bell, Emigration, pp. 50–6 about Canadian law restrictive of Chinese
immigration, pp. 58, 66 about restrictive laws of Australian states and
territories, pp. 76–7 about an exclusory Australian law of 1901, and pp.
80–3 about restrictive laws of New Zealand, and p. xvii for the quote.
Susie Lan Cassel, introduction of Susie Lan Cassel, ed., The Chinese in
America: A History from Gold Mountain the the New Millennium (Walnut
Creek, California: Altamira Press, c2002), pp. 5–6, 18 about restrictive
laws of Canada, the United States, and Mexico. Martin Luther King, Jr., a
speech delivered in Montgomery, Alabama on 25 March 1965 in Clay-
borne Carson and Kris Shepard, eds., A Call to Conscience: The Land-
mark Speeches of Dr. Martin Luther King, Jr., (Atlanta: IPM, c2001), pp.
122–4 for King speaking about the use of Jim Crow by ‘Bourbon interests’
of the South to keep wage levels near subsistence; King cites the book The
Strange Career of Jim Crow by C. Vann Woodward. Howard Zinn, A
People's History of the United States, 1492-Present, twentieth anniversary
edition (New York: HarperCollins Publishers, 1999), pp. 273–5 for the
interest in cheap black labor in the South and the similar treatment of
cheap white labor.
55 para: Christianity
Powderly, Thirty, pp. 41, 158, 161–2 about labor bureaus and p. 30 for
ideas not lost. Selvin, Champions, pp. 29–31 about Sylvis and the Union,
and pp. 35–8 about Stephens.
55 para: consideration
Powderly, Thirty, pp. 161–3 about New Jersey, Illinois, other state
bureaus, and Federal Bureau of Labor, and pp. 165–6 about creation of
first Dept. of Labor. U.S. Department of Labor, Labor Through the
Century, 1833–1933, Revised Edition (Washington: U.S. Gov. Printing
Office, 1934), p. 37 for the creations of the F. B. of L., the D. of C. & L,
and the Secretary of Labor. Act of 13 June 1888, ch. 389 created first D.
of L. Act of 14 February 1903, ch. 552 created the D. of C. & L. with
Secretary. Act of 4 March 1913, ch. 141 created the second D. of L. with
Secretary. Selvin, Champions, p. 47 about becoming defunct in 1916.
56 para: pass
U.S. Senate Report 820, dated 28 June 1884 (48th Cong., 1st sess.),
serial volume number 2179, p. 9 about contracted arrivals of 1879–80.
Powderly, Thirty, pp. 224–5 about contracted arrivals of 1883 and hiring
of lawyer, and pp. 226–7 about enactment of Foran Bill. “Foran, Martin
Ambrose,” The National Cyclopædia of American Biography, Being the
History of the United States as Illustrated in the Lives of the Founders,
Builders, and Defenders of the Republic, and of the Men and Women Who
Are Doing the Work and Moulding the Thought of the Present Time (New
York: James T. White & Company, 1926), vol. 19, p. 156 found via Char-
lotte Erickson, American Industry and the European Immigrant, 1860–
1885 (Cambridge, Massachusetts: Harvard University Press, 1957), p. 155
and p. 248, endnote 35 about Martin Ambrose Foran the former president
of the Cooper's International Union and prosecuting attorney of Cleveland
elected in 1882 as the Democratic representative from the 20th and 21st
Ohio districts—circumstances of the two districts I can't explain—and re-
elected in 1884 and 1886, and author of The Other Side (1886) in response
to the anonymous book The Breadwinners (1880). Erickson cited about
Foran's election to Congress besides National Cyclopædia of American
Biography exactly one other source: The Bench and Bar of Northern Ohio,
pp. 396–7. Consequently found, William B. Neff, ed., Bench and Bar
Northern Ohio: History and Biography (Cleveland: The Historical
Publishing Co., 1921), pp. 396–7 about the same election and two re-elec-
tions from the 20th and 21st districts. Another confusing point is the refer-
ence to the Cooper's International Union in National Cyclopædia but the
Coopers' International Union in Bench and Bar. I have used Coopers
International Union in the manner of Erickson.
56 para: workmen
S.rp.820 (48–1) 2179, pp. 1–2 about committees and rationale.
56 para: Brazil
Labor Through the Century, p. 16 about use of contract labor.
Powderly, Thirty, pp. 218–9 about use of advertisements and p. 220 citing
testimony of Jay Gould given 14 Dec. 1882 before the New York Senate
committee about agents of land-grant railroads. 1952 U.S.C.C.A.N. 1653
at 1662 about use of advertisements. Fairchild, Immigration, pp. 148–52
about agents, indoctrination, and loans. Senate Report 820, p. 10 about
Canadians and p. 11 about Brazil.
57 para: entry
Erickson, American Industry, pp. 158–9 about no opposition among
industrialists and support of protectionists. Powderly, Thirty, p. 221 about
pretense to protect labor with tariff and pp. 226–7 about Senate procrasti-
nation. Prescott F. Hall, “The Federal Contract Labor Law,” Harvard Law
Review, Vol. 11, No. 8 (25 March 1898), p. 525 about dismissive statistics,
528 about personal friend. Joseph H. Senner, “The Immigration
Question,” Annals of the American Academy of Political and Social
Science, Vol. 10 (July 1897) p. 3 about crossing borders with neighboring
countries, being not more than two.
57 para: cents,
58 para: time, cents
H.misdoc.572 (50–1) 2579, part 1 (1888), pp. 3, 6, 11, 29 about
commissions, pp. 8, 10, 11 about price of $23 and cartel, pp. 85–6 about
Italian bosses in NYC, p. 99 for exchange rate of 1 franc equal to 19 cents,
and pp. 93–100 for testimony and story of Francisco Zapponi. A compre-
hensive summary of prosecutions of contract labor law was reported in
S.exdoc.102 (53–2) 3163, dated 26 May 1894.
58 para: States,
59 para: none
Hall, “Federal,” p. 526 about commuting Canadians, and p. 527 about
contractual impossibility and general rule, citing and leading to the two
court cases given next. United States v. Edgar, The Federal Reporter, Vol.
45, March–June 1891 (St. Paul: West Publishing Co., 1891), pp. 44–6
about ruling of Judge Thayer—authoritatively cited as 45 Fed. Rep. 44.
United States v. Edgar, 48 Fed. Rep. 91 about appeal and content of corre-
spondence involving the defendant.
59 para: differently
Powderly, Thirty, p. 241 about Sylvis, pp. 128–30 about objective, pp.
245, 331 about proclamation in 1883, p. 332 about title change, p. 245
about objective of 1884 and meaning of refusal, p. 144 about aversion to
strikes, p. 142 about instructing workers, and pp. 154–5 about instructing
the public. Selvin, Champions, p. 40 about aversions to strikes.
60 para: be, country
Powderly, Thirty, pp. 245–6, 251–2 for Powderly's eight-hour campaign
and essay but the word ‘who’ instead of ‘that’ followed ‘landlords’ and
‘Old World’ was all lower case. T. V. Powderly, “The Army of the Discon-
tented,” North American Review, Vol. 140, No. 341 (April 1885), p. 377
for the excerpt from the published essay.
60 para: leadership
Irving Werstein, Strangled Voices: The Story of the Haymarket Affair
(New York: The Macmillan Company, c1970), p. 21 about losing
members, and p. 23 about oblivion. Selvin, Champions, p. 43 about facing
dissolution. Note the following are two sources are edited and abridged
versions of the same original. Samuel Gompers, Seventy Years of Life and
Labor: An Autobiography, ed. Nick Salvatore (Ithaca, NY: ILR Press,
c1984), pp. 74, 95 about meeting November 1884 in Chicago. Samuel

Gompers, Seventy Years of Life and Labor, eds. Philip Taft and John A.
Sessions (New York: E. P. Dutton & Co., 1957), pp. 140, 172 about
meeting November 1884 in Chicago. Green, Death, p. 146 about Henry
George Hall. Powderly, Thirty, p. 255 to narrow the 1885 meeting to
December and for quote extracted mid-sentence from the 1884 resolution
as restated in an 1885 resolution, and p. 252 about plan of 1885. If the
editing can be trusted, Gompers was vague about the crux of the FOTLU
plan and its reliance on strikes: Gompers, Seventy (c1984), pp. 95–6, and
Gompers, Seventy (1957), pp. 172–4. On respective pages 95 and 174,
Gompers partially accords Powderly's account of the plan: “Most of the
unions began holding agitation meetings and inaugurated practical
programs.” Henry David, The History of the Haymarket Affair: A Study in
the American Social-Revolutionary and Labor Movements, 2nd ed. (New
York: Russell & Russell, c1958), pp. 162–3 for the resolution by the
FOTLU at its 1884 convention without reference to the strike as a means
and the general uncertainty of support for a strike, and the repeat of the
resolution at the 1885 convention, accompanied by explicit support for the
strike as means.
61 para: celebrity
Nick Salvatore, introduction of Gompers, Seventy (c1984), p. xxi about
absence of Knights. Gompers, Seventy (c1984), pp. 68–9 about the first
meeting, p. 72 about second meeting and pp. 76, 81 about Knights'
attempt. Gompers, Seventy (1957), pp. 128–31 about the first meeting, p.
137 about second meeting and pp. 145, 157 about Knights' attempt.
Powderly, Thirty, p. 332 about National Trade Assemblies, pp. 252–4 for
the quote, Powderly's position, and resolutions of Local Assemblies.
Philip S. Foner, History of the Labor Movement in the United States, in 4
volumes, Vol. 2, “From the Founding of the American Federation of Labor
to the Emergence of American Imperialism” (New York: International
Publishers, 1955 for Vol. 2), p.166, unnumbered fnote for Powderly's slurs,
p. 83 w/ unnumbered fnote for the spike in workers subjected to lockouts,
and p. 54 for the jump of membership from 110,000 in July 1885 to over
700,000 in October 1886.
61 para: corporeal
Pierce, A History of Chicago, Vol. 3, p. 533 for data about net industrial
output and wage growth based on U.S., Eleventh Census, 1890, “Manufac-
turing Industries,” pt. II, xxx, 3–5. James Green, Death in the Haymarket:
A Story of Chicago, the First Labor Movement and the Bombing That
Divided Gilded Age America (New York: Pantheon Books, c2006), pp. 5, 8
about Tribune's lead. Avrich, Tragedy, p. 39 about influence, pp. 45–6,
50–1 about Germans. Werstein, Voices, p. 9 about population and wages,
and pp. 14–6 about influence. Gibson and Lennon, “Historical Census
Statistics,” table 19 for a foreign-born population of 40.7% in 1880 and
41.0% in 1890. Powderly, Thirty, p. 281 about estimation.
62 para: pro tempore

Green, Death, p. 15 citing the Chicago Tribune, 2 May 1865 about
eulogy. Avrich, Tragedy, p. 16 about strychnine quote, and p. 33 about
hand grenades and unwashed mob, citing for the unwashed mob Bruce,
1877: Year of Violence (Indianapolis: Bobbs-Merill, 1959), but (1989)
works, p. 239 itself citing the Chicago Times, 25 July 1877. Werstein,
Voices, pp. 10–1 about hand grenades of an unidentified, perhaps the same,
Chicago Times issue. Bruce, 1877, p. 245 citing the Chicago Times, 26
July 1877 about sound. David, History of the Haymarket Affair, pp. 123,
131 for the charge in the anarchist-socialist paper Alarm dated 1
November 1884 that the Chicago Times had asserted ‘hand-grenades
should be thrown among those union sailors who are striving to obtain
higher wages.’
62 para: politicians
Maury Klein, The Life and Legend of Jay Gould (Baltimore: The John
Hopkins University Press, 1986), p. 357 about the Knights of Labor as an
adversary of Jay Gould 1883–1885, p. 358 for the hold on leadership of
the Knights by Powderly and his board having never been terribly strong
and lost because the numerous members of the Knights who had joined
following the success of the Knights in 1885 brought an uncontrollable
exuberance, and pp. 358–63 for the strike in 1886 against the Gould rail-
roads lost by the Knights. “The Strike at Galveston,” New-York Times, 6
November 1885, p. 5, col. 5 for the reporter's quote. Powderly, Thirty, p.
252 for Powderly's objection to the strike for the eight-hour day planned
for 1 May 1886, and p. 260 for the ‘Southwest strike in progress during the
two months preceding the eight-hour strike’ that began 1 May 1886. Nick
Salvatore, introduction in Gompers, Seventy Years, ed. Nick Salvatore
(c1984), pp. xxi–xxii for Powderly's generally unheeded antistrike philos-
ophy, Powderly's circular against a major Knights of Labor strike against
Gould railroads in the Southwest in 1886, Gomper's struggle against the
Knights and disparagement of Powderly, and the creation of the American
Federation of Labor in 1886 on the organization base of the FOTLU.
There is a reason why Thirty Years of Labor is quite readable and Seventy
Years of Life and Labor is typically abridged and edited. David, History of
the Haymarket Affair, p. 177 for the eight-hour movement with strikes
continuing through the first two week of May 1886 in Chicago, pp. 186,
193 for police thuggery, pp. 193-5 for intent to resist police brutality by
denouncement and otherwise, pp. xix, 204 for the use of a dynamite bomb
on the night of 4 May 1886, pp. 206–7 for the misrepresentation of the
event by the press, and p.3 for appellation Great Upheaval given to labor
unrest 1884–1886 and the expectation written in 1887 that the previous
(calendar?) year would be remembered as the year of the great uprising of
labor. Green, Death, p. 10 for the relevance of the invention of dynamite
and the show trial leading to the hanging of four anarchists on 11
November 1887. Philip S. Foner, History of the Labor Movement in the
United States, Vol. 2, p. 50 citing S. W. Foss in Tid-Bits, undated clipping,
New York Public Library, Scrapbooks on Labor for the quote of Gould,
and Vol. 1, “From Colonial Times to the Founding of the American Feder-
ation of Labor,” 3rd printing (New York: International Publishers, 1962 for
Vol. 1), p. 12 for the contributions of working-class heroes and heroines

having been left out of history, but note the copyright date of the volume is
1947. The classic, and it seems best, treatment of American labor's heyday
is chapter 9, “The Great Upheaval, 1884–1886” of Selig Perlman's Part 6,
“Upheaval and Reorganisation (Since 1876)” in John R. Commons, ed.,
History of Labour in the United States (New York: Macmillan Company,
1918), having 6 parts, each individually authored, and 2 volumes. The
same was last republished per this version: (New York, Augustus M.
Kelley, 1966). Library catalogs are misleading when they say the 1918 or
1966 publications were 4 volumes. After the publication in 1926, again by
The Macmillan Company, based on the original two volumes, a series-
making extension was first published in 1935: History of Labor in the
United States, 1896–1932 (New York: The Macmillan Company, 1935),
volumes 3 and 4. The American spelling of ‘labor’ is accurate, exactly two
volumes were provided, and those volumes were labeled 3 and 4.
63 para: immigrants
Janice D. Schakowsky, “Cook County Leads the Nation in Support of
Immigration Reform,” a written statement in Congressional Record,
Extensions of Remarks, daily edition, 27 July 2005, pp. E1655–6 for
Schakowsky's quote.
64 para: savagery
Seth Rockman, “The Unfree Origins of American Capitalism,” in The
Economy of Early America: Historical Perspective and New Directions,
ed. Cathy Matson (University Park, Penn.: Pennsylvania University Press,
c2006), p. 337, fnote 7 for antebellum New Englanders erasing slavery
from their history citing Joanne Pope Melish, Disowning Slavery: Gradual
Emancipation and “Race” in New England, 1780–1860 (Ithaca: Cornell
University Press, 1998), pp. 337–8 for consensus history emergent in the
1950s and with us ever since, and p. 361 about the ‘rhetorical melding of
capitalism, democracy, and freedom’ and for an apt quote from Edward
Countryman: “The glory did not come free. It had a price, and Americans
ought to be comfortable enough with ourselves to recognize that the price
and the glory can not be pried apart.”
64 para: strikebreakers
Erickson, American Industry, p. viii for extract, from two consecutive
paragraphs, quotes around “new immigrants” made single.
64 para: Assembly
Bloch, “Labor,” p. 175 for quote.
65 para: again
66 Stat. 163–282, for the Immigration and Nationality Act, Public Law
82–414, p. 168 for paragraph INA 101(a)(15)(H) that defines the types of
visas that in practice start with the letter H to match the label (H) of the
paragraph, and p. 279 for the repeal of item (2) the Act of February 26,
1885 (23 Stat. 332), i.e. the Foran Act, and per the instructions all amend-
ments thereto, and explicitly distinct enactments of the amendatory acts
per items (3)–(5). Additional amendment was made by the Act of 23

February 1887, ch. 220. See table FR.2, on page 355, for those four acts
that amended Foran law.
66 epi: signpost
Henry George, “The Warning of the English Strikes,” North American
Review, Vol. 149, No. 395 (October 1889), p. 387 for the epigraph, in
reference to London.
Chapter 2: Free Enterprise 101

69 epi: return
Henry V. Poor, “The Currency and Finances of the United States,”
North American Review, Vol. 118, No. 242 (January 1874), p. 96 for the
epigraph.
70 para: wealth
Countries with legacies of self-directed popular socialism resulting in a
well-established government include: China, Cuba, Germany (National
Socialists), Russia, and Vietnam. Countries with legacies of self-directed
political movement resulting in a well-established government include:
South Korea, Mali, and Niger. Countries with legacies devoid of grass-
roots political movement resulting in a well-established government
include: Burma (Myanmar), Liberia, and North Korea (which I predict will
join South Korea by 2015). You can compare cursory histories and per
capita Gross Domestic Products using the Central Intelligence Agency's
(CIA's) World Factbook found on the CIA website as some indicator of
success. The United Nations (UN) Convention on the Rights of the Child
(1989), article 1 generally defines a child as a human being below the age
of 18 years, article 38 prohibits the deployment of soldiers who have not
reached the age of 15 years, article 43 establishes a UN Committee on the
Rights of the Child, and article 44 requires state parties to report to the UN
committee on child-protection measures taken. Optional Protocol to the
Convention on the Rights of the Child on the involvement of children in
armed conflict (2000), passim requires soldiers in combat to have reached
the age of 18 years, and article 3 requires an unspecified upward revision
of the minimum age requirement in the 1989 treaty, article 38. Coalition
to Stop the Use of Child Soldiers is a coalition of human right organiza-
tions formed in 1998 and working closely with the United Nations. The
Coalition has published its Child Soldiers Global Reports, the first in 2001
and two more in 2004 and 2008. It appears from those reports that all
Western nations previously deploying under-18s for combat duty,
including the United States, have ceased to do so. The distinction between
late teens and pre-teens is conspicuously absent in summary statements
using the term ‘child’.
Child Soldiers Global Report 2008 (London: Coalition to Stop the Use
of Child Soldiers, 2008), online version, accessed 24 June 2008, p. 15, col.
2 for (non-Western nation) Myanmar as the most egregious practitioner of
child soldiering. Ervin Dyer, “The Smallest Soldiers,” Pitt (Spring 2008),
pp. 18–22 about child soldiering researched by the Ford Institute for
Human Security and the story of a boy abducted at roughly six years of
age to soldier in a Liberian civil war and having his ears mutilated as
punishment for fleeing from his captors. Vera Achvarina and Simon F.
Reich, “No Place to Hide,” International Security, Vol. 31, No. 1 (Summer
2006), as accessed 6 November 2008 from the website of Vera V. Achva-
rina at http://www.pitt.edu/~vva1/Achvarina_Reich_IS_31_1.pdf, p. 130
about (non-Western) Africa as the epicenter of child soldiering, pp. 140,
147–8 for the correlation between camps for refugees and internally
displaced persons (IDPs), p. 143 w/ table 1 for 12 confirmed cases of child
soldiering in Angola, Burundi, Democratic Republic of Congo, Liberia,
Mozambique, Rwanda, Sierra Leone, Sudan, and Uganda, p. 144 and pp.
146–8, figures 1–3 for seven confirmed cases of no child soldiering in
Central African Republic, Lesotho, Mali, Niger, and Senegal, p. 156 for
UN sponsorship of a camp, and pp. 153, 159, 162 for the failure of UN
means to protect congregated children—allowing inference that UN
humanitarian efforts facilitate brutality of and by children—and pp. 135–6
about the erroneous correlation between small arms transfers and child
soldiering, and the attention of a large nongovernmental lobby on the
global control of small arms. The Achvarina and Reich article is also
archived online by the MUSE Project, which makes a limited selection of
papers available gratis. The first copy I found, via an Internet search circa
23 June 2008, was the project's version (it carried the project's cover page),
but I did not document the link or access time, and I was unable on 6
November 2008 to repeat finding a gratis source of the project's copy on
the Internet.
The right to parent and the right to bear small arms are tiny sacrifices
we Westerners can make ‘for all the world's children.’ A global govern-
ment joining the world's peoples of today is premature if not forever
peaceably impossible. A global political union puts a questionable cart in
front of the horse. It's expounded by recently classic, foolish, ‘feminized
liberalism’, as opposed to brainy, formerly classic liberalism, once a
popular haunt for manliness. Tradition and reform are each neither intrin-
sically good nor bad because truth must carry its own context. So why in
modern times should either sex confine its thinking to one incomplete
solution space or another? Let's make distinction between ‘fliberalism’ as
demonstrated by the UN and classic liberalism as demonstrated by Ameri-
ca's Founding Fathers.
73 epi: not
“The Labor Crisis,” Nation, Vol. 4, No. 95 (25 April 1867) p. 335, cols.
1 and 2 for the quote, alluding to the fact a free-labor pool is not neces-
sarily empowered within a free-labor market.
76 epi: 1973
Richard Nixon, “Annual Message to the Congress: The Economic
Report of the President,” dated 30 January 1973, item 22 in Richard
Nixon, Public Papers of the Presidents of the United States: Containing
the Public Messages, Speeches, and Statements of the President, Volume
1973 (Washington: U.S. Government Printing Office, 1975), p. 50, col. 2
for the first epigraph.
76 epi: inflation
Richard Nixon, “Special Message to the Congress Proposing Establish-
ment of a Cost of Living Task Force,” dated 2 August 1974, item 237 in
Richard Nixon, Public Papers of the Presidents of the United States:
Containing the Public Messages, Speeches, and Statements of the Presi-
dent, 1 January to 9 August 1974, Volume 1974 (Washington: U.S.
Government Printing Office, 1975), p. 619, col. 1 for the second epigraph.
78 epi: cent
“Miscellanea,” Journal of the Statistical Society of London, Vol. 25, No.
4 (December 1862), p. 532 for the quote with comma as shown and the
date of the quoted source as circa November 1862, and p. 534 for the
source given simply as the New York Herald.
80 epi: Secretary
Appendix to the Congressional Globe, 37th Congress, 2nd session
(1862), New Series No. 3 (indeterminate because 11 December 1861, the
date of Congressional Globe, New Series No. 3, cannot be inferred to have
been before the speech itself dated 3 February 1862), p. 44, col. 1, top
retrieved 25 September 2007 from the “American Memory” portal within
the Web site of the Library of Congress at www.loc.gov. Clarification in
brackets added. Vallandigham was referring to Salmon P. Chase. The
Civil War has its buffs for a reason: the human condition to the extreme.
The account of Vallandigham's exile and death by historian Dallas Bogan,
posted online via the Warren County OHGenWeb Project as of 19
December 2006, is no exception.
82 epi: wants
Andrew Jackson, Eighth Annual Message, 5 December 1836, retrieved
24 September 2007 from the the ‘Century of Lawmaking’ digital collection
of the U.S. Library of Congress: 1) U.S. Senate Journal, 24th Congress,
2nd session (1836), 6 December 1836, p. 10; and 2) U.S. House Journal,
24th Congress, 2nd session (1837), 6 December 1836, pp. 13–4 for the
epigraph. Also available online from The American Presidency Project,
but with some differences as accessed 24 October 2006.
88 epi: labor
Andrew Jackson, Eighth Annual Message 5 December 1836, retrieved
25 September 2007 from the the ‘Century of Lawmaking’ digital collection
of the U.S. Library of Congress: 1) U.S. Senate Journal, 24th Congress,
2nd session (1836), 6 December 1836, p. 17; and 2) U.S. House Journal,
24th Congress, 2nd session (1837), 6 December 1836, p. 20 for the
epigraph.
90 epi: ability
“The Labor Crisis,” Nation, Vol. 4, No. 95 (25 April 1867) p. 336, col. 1
for the epigraph.
92 para: philosophical
Stephen R. Covey, The Seven Habits of Highly Effective People:
Restoring the Character Ethic (New York: Simon & Schuster, 1990), p. 57
about the metaphorical machine and the balance between production and
production capability.
94 epi: poverty
“Destiny and Duty of the Non-Wealthy Classes,” Old Guard, Vol. 2,
No. 2 (February 1864), p. 41 for the quote modified to by removing the
italicizing of ‘poverty’ from source and by added the portion in brackets
for clarification.
96 para: look
DeNavas-Walt, Carmen, Bernadette D. Proctor, and Cheryl Hill Lee,
U.S. Census Bureau, Current Population Reports, P60–229, Income,
Poverty, and Health Insurance Coverage in the United States: 2004, U.S.
Government Printing Office, August 2005, p. 2 for pure money basis of
income statistics. Donald L. Barlett and James B. Steele, Critical Condi-
tion: How Health Care in America Became Big Business—and Bad
Medicine (New York: Doubleday, 2004), p. 32 for the insulation of
employees from rising healthcare costs until the late 1990s. I recall
concern among my coworkers over rising healthcare costs in 1991.
97 para: dimensions
Elaine L. Chao, A Chartbook of International Labor Comparisons:
United States, Europe, Asia, U.S. Department of Labor, April 2003, p. iii
and chart 19 on page 24 with source Organization for Economic Coopera-
tion and Development for the difference of thousands of hours annually.
“Key Indicators of the Labour Market (KILM) 6. Hours of Work” Web
page, International Labour Organization, http://www.ilo.org/public/english
/employment/strat/kilm/kilm06.htm accessed 27 June 2006, for the differ-
ence of thousands of hours annually. Dramatic Work-Life Balance Bene-
fits Revealed in New Employee Opinion Study by ISR. Management
Techniques that Drive Increased Corporate Revenues Identified in Study,
PRWeb Press Release on behalf of ISR, 25 May 2005, for U.S. workers
working the most in recent history. “Stress...at Work” Web page, National
Institute for Occupational Safety and Health (NIOSH), U.S. Department of
Health and Human Services, http://www.cdc.gov/niosh/stresswk.html
accessed 27 June 2006, for the potential costs beyond dollars.
97 para: 1
Steven Hipple, “Self-employment in the United States: an update,”
Monthly Labor Review Online, Vol. 127, No. 7 (BLS, July 2004), tables 1,
2, and 9, for BLS statistics.
97 para: self-employed
Statistical table downloaded 27 June 2006 from IRS Web page at
http://www.irs.gov/taxstats/bustaxstats/article/0,,id=96424,00.html, for
5,705,600 filing of forms 940, 940EZ, and 940PR in calendar year 2003.
The count 5,630,246 is an estimate determined by using the populations of
Puerto Rico and the United States to exclude an estimate by proportion of
the number of filings of form 940PR. The populations came from The
World Factbook, U.S. Central Intelligence Agency, 2003, online version as
downloaded July 2006. FUTA is engrossed at 68A Stat. 439–454 within
the Internal Revenue Code of 1954, noted at 68 Stat. 730 and engrossed as
Vol 68A of the U.S. Statutes at Large.
98 para: perspective
Top Executives from Occupational Outlook Handbook, 2004–05,
FDLC Electronic Collection Archive as accessed 27 June 2006 at
http://permanent.access.gpo.gov/lps4235/www.bls.gov/oco/ocos012.htm
for 2.6 million working top executives in 2002. Occupational Outlook
Handbook, 2006–07 Edition, Bureau of Labor Statistics, U.S. Department
of Labor as accessed 27 June 2006 at http://www.bls.gov/oco. The partic-
ular Web page was http://www.bls.gov/oco/ocos012.htm as of 27 June
2006, for 2.3 million in 2004. Statistical Abstract of the United States
2006 (125th Edition), U.S. Census Bureau, section 1, “Population,” table
2, p. 8 for the total U.S. population.
98 para: perspective
Arthur B. Kennickell, Currents and Undercurrents: Changes in the
Distribution of Wealth, 1989–2004, SCF Working Paper, The Federal
Reserve Board, 30 January 2006, accessed circa 20 June 2006 via the SCF
website or section at http://www.federalreserve.gov/pubs/oss/oss2
/scfindex.html, p. 11, table 5 for the richest 1 percent and 5 percent holding
about one-third and half the wealth, respectively.
99 para: 57.5%
Kennickell, p. 11, table 5.
101 tab: 2.1
CPI %: CPI–U, 1982–84=100, not seasonally adjusted. Obtained 23
June 2006 from the “U.S. Bureau of Labor Statistics” website
http://www.bls.gov.
Real GDP %: Last Revised on 25 May 2006. Obtained 23 June 2006
from the “U.S. Bureau of Economic Analysis” website www.bea.gov.
Real Earnings: Percent change of yearly average of real weekly earn-
ings (in 1982 dollars using CPI–W) for production or nonsupervisory
workers on private nonfarm payrolls, not seasonally adjusted, data series
CEU0500000051. Obtained 23 June 2006 from website
http://www.bls.gov.
Lower 5th Income: Average real income and percentage share of real
income of lower fifth of households by year using 2004 dollars. DeNavas-
Walt, Carmen, Bernadette D. Proctor, and Cheryl Hill Lee, U.S. Census
Bureau, Current Population Reports, P60–229, Income, Poverty, and
Health Insurance Coverage in the United States: 2004, U.S. Government
Printing Office, p. 40, table A–3. Table A–3 uses the source U.S. Census
Bureau, Current Population Survey, 1968 to 2005 Annual Social Economic
Supplements. Should you look at figure 1 on page 3 of P60–229, ponder
the exhaustion of reducible, mainly medical employee benefits and note
the second paragraph on page 2.
2nd 5th Income: Ditto but of second fifth.
Mid-5th Income: Ditto but of middle fifth.

4th 5th Income: Ditto but of fourth fifth.
Upper 5th Income: Ditto but of upper fifth.
Lower ½ Net Worth: Absolute 2004 dollar figures calculated from
tabular data summary using 2004 dollars of the 2004 Survey of Consumer
Finances. Percentage figures taken from Arthur B. Kennickell, Currents
and Undercurrents: Changes in the Distribution of Wealth, 1989–2004,
SCF Working Paper, The Federal Reserve Board, 30 January 2006,
accessed circa 20 June 2006 via the SCF website or section at
http://www.federalreserve.gov/pubs/oss/oss2/scfindex.html, p. 11, table 5.
Mid-½ Net Worth: Absolute 2004 dollar figures and percentages calcu-
lated from tabular data summary using 2004 dollars of the 2004 Survey of
Consumer Finances.
Upper ½ Net Worth: Ditto.
Billionaires: Derived from yearly Forbes lists of Richest 400 Americans
as posted 24 June 2006 at the Forbes website www.forbes.com. Use a
search engine to access archived or older lists.
101 para: sure
P60–229, table B–1, p. 46 for the U.S poverty rate. Table B–1 uses the
source U.S. Census Bureau, Current Population Survey, 1960 to 2005
Annual Social Economic Supplements.
102 epi: year
Lester C. Thurow, “Companies Merge; Families Break Up,” New York
Times, 3 September 1995, sec. 4, p. 11, col. 2 for the quote of Thurow.
102 epi: engineer
Congressional Record, daily edition, House, 19 September 1995, p.
H9239, col. 1 for the quote of Robert Odell Owens, and the quote of
Thurow by Owens but with nonsubstantive differences with the original
source as shown.
103 para: 2002
“NASDAQ Composite: Close” Web page from Economagic website as
accessed 20 January 2009 at http://www.economagic.com/em-cgi/data.exe
/sp/day-nsdc.
103 para: inflation
Historical Tables, Budget of the United States Government, Fiscal Year
2007, Government Printing Office, table 1.1, p. 22.
Chapter 3: Aliens and Nationals 101

105 epi: evil
“National Economy,” No. 4, “Surplus Labour; and the Remedies
Proposed: I. Poor-Laws for Ireland,” Fraser's Magazine For Town and
Country, Vol. 7, No. 39 (March 1833), p. 282 for the epigraph.
105 epi: increases
Congressional Record, daily edition, Senate, 11 July 1989, p. S7650 for
Helm's quote on safeguards.
105 epi: abroad

Congressional Record, daily edition, Senate, 12 July 1989, p. S7750 for
Helm's quote on labor shortages.
106 para: labor
John Simanski, “Mapping Trends in Naturalizations: 1980 to 2003”,
Working Paper, Office of Immigration Statistics, U.S. Department of
Homeland Security, March 2006, p. 2 about the effect of the IRCA.
106 para: shortages
“Act of 7 April 1970 summary” Web page as accessed 28 June 2006 at
http://www.uscis.gov/graphics/shared/aboutus/statistics/legishist/533.htm,
U.S. Citizenship and Immigration Services (USCIS), about the visa provi-
sions of the act. The summary Web page was within the history subsection
under the ‘About Us and FOIA’ section of the USCIS website at
www.uscis.gov.
106 para: balance
Details on S. 358 were taken circa 2006 from the Thomas website,
available at http://thomas.loc.gov or http://www.thomas.gov. Follow ‘Bills,
Resolutions’ -> ‘Multiple Congresses’, insert the text ‘Immigration Act of
1998 February 7’, have checked only 101st Congress, initiate a search, and
follow link ‘[S.358.IS]’. To lose highlighting of search terms in the text of
bill, follow ‘other versions’. For additional information, follow the link to
‘Bill Summary & Status file’. That's generally how I got information
about Congressional bills unless indicated otherwise. 8 U.S.C. 1151 notes
for the 290,000 ceiling. Notes of a section of the U.S.C are available
online from the Cornell University portal at www.law.cornell.edu/uscode or
in a physical copy at the end of the section.
107 para: 358
Office of the Clerk of the U.S. House of Representatives website as
accessed 29 June 2006 at http://clerk.house.gov, for the members of the
committee. Use the ‘Historical Highlights’ section to retrieve the Congres-
sional history of the 101st Congress. The Thomas website at
http://thomas.loc.gov was used circa 2006 to find information about H.R.
4300. According to the two Congressional Research Service (CRS)
summaries thereby available, the provisions were added sometime
between 19 May and 3 October. The chronology of Congressional actions
with amendments does not indicate any amendments added the provisions.
The only remaining possibility is the mark-up sessions but the last one was
of the entire Committee on Judiciary. All members of the stated subcom-
mittee were members of the Committee on Judiciary. Use Thomas to view
the related chronologies of Congressional actions with amendments
regarding S. 358 and H.R. 4300. U.S. House Conference Report 955,
dated 26 October 1990 (101st Cong., 2nd sess.), specifies the compromise
between Houses and is accessible from the Congressional Record, daily
edition posted on the Thomas Web portal.
107 para: employers

8 U.S.C. 1101 notes for the changed qualifications of persons receiving
an H–1B visa.
108 epi: shortages
Letter dated 23 March 1998 from Alexis Herman to Henry J. Hyde as
engrossed in House of Representatives Report No. 105–668, accessed 19
December 2006 via the Thomas portal of the Library of Congress, p. 16 of
the PDF version for the quote.
108 epi: jobs, workers
Congressional Record, daily edition, Senate, 12 November 1998, p.
S13001 for the Kennedy quotes, but the first having been supplemented
with bracketed clarification of ‘these’ with its antecedent, in Kennedy's
exact wording.
108 para: sampling, science, them, States
To verify the given features of S. 1723 with Thomas, search on text
‘American Competitiveness Act’ with only the 105th Congress checked.
109 para: replacement, applies, are
A Web page from the Employment and Training Administration at
http://www.doleta.gov/h-1b/html/overv1.cfm, as accessed 29 May 2006, for
details of the H–1B Technical Skills Training Grant Program. S. Amdt.
2417 of S. 1723 of the 105th Congress for the quote. The enacted version
of this ‘good faith’ provision was placed in H.R. 4328.
110 epi: limited
Congressional Record, daily edition, Senate, 26 September 2000, p.
S9216 for Kennedy's quote.
110 epi: it
Congressional Record, daily edition, Senate, 27 September 2000, p.
S9359 for Gramm's quote.
112 para: 29
Statistical Abstract of the United States 2001, U.S. Census Bureau ,
table no. 389 (see http://www.census.gov/prod/2002pubs/01statab/stat-
ab01.html) citing Congressional Quarterly, Inc., Washington, DC, America
Votes, biennial, for the results of the 2000 elections.
113 epi: proportions
Onley Searles, “The Coal Strike,” a short commentary, North American
Review, Vol. 146, No. 376 (of series, No. 3 of volume) (March 1888), p.
341 for the epigraph, without a comma per the source.
113 epi: country, course, worker
Congressional Record, daily edition, Senate, 24 May 2006, p. S5063 for
Byrd's quote, p. S5079 for Hutchinson's quote, and p. S5100 for Dorgan's
quote.
114 para: worker

The proposed cap provisions are in the 109th Congress' S. 2611, sec.
408, “Temporary Guest Worker Visa Program Task Force.”
116 para: 4188
Congressional Record (CR), daily edition, Senate, 18 May 2006, as
accessed from the Thomas Web portal of the U.S. Library of Congress, p.
S4812 about the introduction of S. Amdt. 4071. To retrieve from Thomas,
search the CR of the 109th Congress for the text ‘S4812’ limited to the
Senate section for the specified date (as a range). In these notes the source
of the CR, daily edition was the Thomas portal unless otherwise indicated.
The same CR page may be retrieved from the U.S. Government Printing
Office website at http://www.gpoaccess.gov. INA 212(e) or 8 U.S.C
1182(e), to be modified for the J–STEM visa, clearly refers to U.S.
Government funding for the J visa category. This government sponsorship
is via the Exchange Visitor Program administered by the Bureau of Educa-
tional and Cultural Affairs (ECA) within the U.S. Department of State.
The ECA website at http://exchanges.state.gov describes the program.
116 para: that
One example source about career destruction is: Snigdha Srivastava and
Nik Theodore, “Information Technology Labor Markets: Rebounding, But
Slowly;” A Report to the Washington Alliance of Technology Workers,
Communications Workers of America, Local 37083, AFL-CIO; Center for
Urban Economic Development University of Illinois at Chicago; June
2006.
Chapter 4: Sociopsychological Canons,

Chapter 4: Psychophysiological Necessity
117 epi: now
“Is Labor a Curse,” Galaxy, Vol. 6, No. 4 (October 1868), p. 546 for the
epigraph.
119 epi: century
Robert D. Putnam, Bowling Alone: The Collapse and Revival of Amer-
ican Community (New York: Simon & Schuster, 2000), p. 27 for the
epigraph.
119 para: happened
The evidence includes: Henry Beard, The Official Politically Correct
Dictionary and Handbook: Updated! New Entries!, (Villard, October
1993) and James Finn Garner, Politically Correct Bedtime Stories:
Modern Tales for Our Life and Times, (John Wiley & Sons Inc, April
1994). Fletcher, Moorish Spain, pp. xiv, 171–3 for a discourse written in
1991 about political correctness—he dubbed it ‘liberal conscience’—
pervading Western academia and media. Thus, it seems political correct-
ness the term and the movement became popular in the early 1990s.
120 epi: ignorance

John Bartlett, Familiar Quotations: A Collection of Passages, Phrases
and Proverbs Traced to Their Sources in Ancient and Modern Literature,
Fifteenth and 125th Anniversary Edition, Revised and Enlarged, ed. Emily
Morison Beck (Boston: Little, Brown and Company, 1980) p. 79, col. 1
citing Diogenes Laertius, Lives of Eminent Philosophers, book 2, sec. 32
for the Socrates epigraph.
122 epi: order
Martin Luther King, Jr., a speech delivered in Washington, D.C. on 17
May 1957 in Clayborne Carson and Kris Shepard, eds., A Call to
Conscience: The Landmark Speeches of Dr. Martin Luther King, Jr.,
(Atlanta: IPM, c2001), p. 51 for the epigraph of King about emotionalism.
122 epi: right
Joseph E. Lowery, a benediction delivered in Washington, D.C. on 20
January 2009 as part of the ceremony for the presidential inauguration of
Barack Hussein Obama II, for the epigraph of rhyme so sublime you could
sketch it and etch it into the wall of a bathroom stall down the hall under
the pall of Third World syllogism and tribalism aspiring now to Second
World socialism under the tutelage of feminism bent on the unnatural
application of maternalism with her Caucasian castigations, Asian crimina-
tions, and back-of-the-class affirmations with bright, silky ribbons for
ebony discriminations, further proof all victimizations are indeed just
perpetrations by the other not a brother and certainly not a mother, dear
Lord, in thy name, first brought to us and taught to us by the evil white
man, we come together in dysfunctional unity knowing everyone in
Zimbabwe is a millionaire, amen. The ‘blessing’ by Rev. Lowery I dub
The Lesser Conviction, Greater Affliction Benediction. His Most Merciful
Blackness was amused by the best poetry of the inaugural. If only Rev.
Wright had been available to champion the most affluent and most privi-
leged societal population of blacks in all the world, those black socialites
held down to a pinnacle by the wayward whiteness of the U.S. of KKK.
Why visit Paris in the springtime when you can rather visit so many
cultured places in sub-Saharan Africa?
124 epi: ends
“The Labor Crisis,” Nation, Vol. 4, No. 95 (25 April 1867) p. 336, col.
1.
124 para: effective
“Business Roundtable Releases December CEO Economic Outlook
Survey,” Business Roundtable press release, 14 December 2005, about the
top six concerns in 2005. “Business Rountable Releases Fourth Quarter
2007 CEO Economic Outlook Survey,” Business Roundtable press release,
4 December 2007, about the top six concerns in 2007.
125 epi: gun
John Bartlett, Familiar Quotations: A Collection of Passages, Phrases
and Proverbs Traced to Their Sources in Ancient and Modern Literature,
Fifteenth and 125th Anniversary Edition, Revised and Enlarged, ed. Emily
Morison Beck (Boston: Little, Brown and Company, 1980) p. 826, col. 1
citing Selected Works of Mao Tse-tung (1965), vol. 1, p. 28 for the quote of
Chairman Mao.
127 epi: founded
Joseph H. Senner, “The Immigration Question,” Annals of the Amer-
ican Academy of Political and Social Science, Vol. 10 (July 1897) p. 12 for
quote and pp. 2–3, 5 for his position as U.S. Commissioner of Immigra-
tion.
128 epi: prosperity
“Strengthening American Competitiveness for the 21st Century,” a
hearing, Senate Committee on Health, Education, Labor, and Pensions, 7
March 2007, vide the written testimony of William H. Gates, chairman of
Microsoft Corporation, accessed from the U.S. Senate website at
http://www.senate.gov via the committee's portal at http://help.senate.gov
on 25 January 2008, for the quote of William Gates. Mr. Gates' spoken
testimony is similar to but not the same as the written testimony from the
hearing.
128 epi: marketing
Julie B. Hairston, “Home foreclosures soar, with Georgia leading the
way”, Atlanta Journal-Constitution, 12 May 2006, accessed 12 May 2006
from the Atlanta Journal-Constitution website at www.ajc.com for the
quote from Suzanne Boas and the bracketed clarification.
128 epi: running
Warren Buffett, Chairman's Letter, dated 21 February 2003, 2002
Annual Report, Berkshire Hathaway Inc., accessed 15 March 2008 from
the Web site at http://www.berkshirehathaway.com, p. 15 for the quote of
Warren Buffett referring to (per p. 3) Charlie Munger, Berkshire's vice
chairman, but italics for the word ‘don't’ has not been used as in the
source.
128 para: scheme
Housing Finance in the Global Financial Market, CGFS Paper No. 26,
a report from a Working Group of the Committee on the Global Financial
System, Bank for International Settlements (BIS) (January 2006), as
downloaded from the BIS Web site 05 February 2008, p. 22 about mort-
gage administrators discovering that subprime borrowers default less with
remindful telephone calls—I have a house, Mommy! Frank Partnoy and
David A. Skeel, Jr., “The Promise and Perils of Credit Derivatives,”
University of Pennsylvania, Institute for Law & Economics, Research
Paper No. 06–22 (circa 2006), accessed 6 March 2008 from the Social
Science Research Network via http://papers.ssrn.com/sol3/papers.cfm
?abstract_id=929747, pp. 21–9 about securitization practices and mecha-
nisms predisposed to corruption regarding credit default swaps, and pp.
29–30 about securitization practices and mechanisms predisposed to
corruption regarding CDOs (collateralized debt obligations) to a degree
equal to or greater than that regarding credit default swaps. Carrie
Teegardin, “Many homeowners still trapped in Ameriquest loans: Foreclo-
sure possible even for those with fraudulent mortgage terms,” Atlanta
Journal-Constitution, 9 March 2008, accessed 11 March 2008 from the
Atlanta Journal-Constitution website at www.ajc.com about Roland Arnall,
the self-made billionaire and former U.S. ambassador to the Netherlands,
and his California-based lending company Ameriquest Mortgage that,
allegedly, made and sold fraudulent loans.
129 para: investments
Anthony Saunders and Berry K. Wilson, Contingent Liability in
Banking: Useful Policy for Developing Countries?, World Bank Policy
Research Working Paper No. 1538 (November 1995), accessed 31 March
2008 from the Social Science Research Network via
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=620523, p. 1 for the
increase of bank owner liability in 1991, pp. 1, 6 about replacement of
‘double liability’ in U.S. banking with a lesser (limited) liability with the
legislation of federal deposit insurance in 1933, p. 7 for characterization of
the U.S. banking system in the early 1980s as one of limited liability, and
p. 8 for characterization of the current (as in 1995) U.S. banking system as
one of limited liability and fixed-rate deposit insurance. W. Scott Frame
and Lawrence J. White, “Fussing and Fuming over Fannie and Freddie:
How Much Smoke, How Much Fire?,” Journal of Economic Perspectives,
Vol. 19, No. 2 (Spring 2005), p. 168 about the dominant pattern for resi-
dential mortgages of loan and hold in 1970 changed by 2005 to loan and
pass. Partnoy and Skeel, “Credit Derivatives,” pp. 1–2 about the likely
shift of lending banks away from their traditional monitoring role as a
result of using credit derivatives that transfer the loan risk to a third
parties.
129 para: Mae
Found via CGFS Paper No. 26, p. 15, fnote 16, Michael Lewis, Liar's
Poker: Rising Through the Wreckage on Wall Street (New York: W. W.
Norton & Company, Inc., c1989) pp. 86–7 about Ginnie Mae seeking to
sell bonds in 1970 on mortgages it guaranteed with the help of Salomon
Brothers, and p. 88 about Salomon Brothers starting to trade mortgage
securities (bonds) no later than September 1977. David J. May, “The Role
of Securitization in Subprime Lending,” GHP Investment Advisors Quar-
terly Newsletter (Second Quarter 2007), The GHP Financial Group,
accessed 11 March 2008 at http://www.ghpcpa.com/News
/2nd_Quarter_2007.pdf, p. 1, col. 2 about the first pass-through security
issued by Ginnie Mae in 1970. CGFS Paper No. 26, p. 15 about invest-
ment banks creating a secondary market. W. Scott Frame and Lawrence J.
White, “Fussing and Fuming over Fannie and Freddie: How Much Smoke,
How Much Fire?,” Journal of Economic Perspectives, Vol. 19, No. 2
(Spring 2005), pp. 160–1 for the definition of Ginnie Mae and the securiti-
zation process, though specified for Fannie Mae and Freddie Mac, as an
exchange of a pool of mortgages for securities, and p. 167 for first issue by
Ginnie Mae in 1970.
130 para: etc.

Lewis, Liar's Poker, pp. 136–7 about the creation and design of CMOs
in 1983, and p. 88 about the first private issue (label) of mortgage bonds in
September 1977, by Salomon Brothers. May, “Role of Securitization,” p.
2 about CMO, p. 3, col. 1 about CDO, and p. 2, col. 1 about the first
(bonds of a) CMO issued by Freddie Mac in 1983. Frame and White,
“Fussing and Fuming,” p. 168 for term CMO, p. 164 with fnote 3 for
Freddie Mac, Fannie Mae, and other organizations deemed government
sponsored entities (GSEs), p. 161 about the creation of Freddie Mac in
1970 to ‘support mortgage markets by securitizing mortgages originated
by savings and loan associations (S&L),’ p. 162, table 1 about outstanding
MBS amounting to just over $2 trillion in 2003, p. 164 about expectations
of the financial markets, and p. 169 for ‘private label’ offerings. H.R.
3221, Housing and Economic Recovery Act of 2008, a cost estimate, dated
23 July 2008, Congressional Budget Office (CBO), p. 1 for the increase to
the statutory limit on the public debt by $800 billion (per 122 Stat. 2908),
and p. 2 for the ‘direct’ cost to the Federal Government over the years
2008–2018 of $24.9 billion and the lack of an estimate of the costs on
discretionary spending. As late as 8 June 2009 no later version of the CBO
estimate was posted at http://www.cbo.gov/cedirect.cfm?bill=ht3221
&cong=110, and the bill was signed into law on 30 July 2008. Mark Jick-
ling, Fannie Mae and Freddie Mac in Conservatorship, CRS Report
RS22950, 15 September 2008, downloaded 6 June 2009 from U.S. State
Department's website via a hyperlink given by a search engine, pp. 1–3 for
establishment of conservatorship by new regulator. Terms Related to
Privatization Activities and Processes, GAO/GGD-97-121, July 1997,
U.S. Government Accountability Office, p. 6 for a definition of GSE to
include a function of increasing credit available to a specific economic
sector. Privatization: Lessons Learned by State and Local Governments,
GAO/GGD-97-48, March 1997, U.S. Government Accountability Office,
p. 45 for a definition of GSE to include having a federal charter. Partnoy
and Skeel, “Credit Derivatives,” pp. 3, 11 for SPE. CGFS Paper No. 26, p.
15 for SPC and private label.
130 para: Boom
“Subprime lending: credit where it's due,” Maclean's, Vol. 120, No. 33
(27 August 2007), p. 2 about Canada having been less liberal with lending
than the United States. Partnoy and Skeel, “Credit Derivatives,” p. 2 for
growth over the ten years ending 2006, pp. 7–8 about the benefit of greater
access of borrowers to capital, pp. 23, 30, 39 about credit derivatives
having been largely unregulated, and p. 19 about JP Morgan Chase, Citi-
group, Enron, and credit derivatives. Found via Partnoy and Skeel,
“Credit Derivatives,” p. 19 w/ fnote 28, Frank Partnoy, Infectious Greed:
How Deceit and Risk Corrupted the Financial Markets (New York: Times
Books, 2003), pp. 373–6 about loans from J. P. Morgan Chase and Citi-
group, lenders who hedged those positions with credit derivatives, to
WorldCom, Global Crossing, and Enron. Frame and White, “Fussing and
Fuming,” pp. 171–3 about excessive U.S. housing, particularly that of
large and second homes, and the pervasive government policy that
supports it, and pp. 165–6 about the obscurity of adjustable rate mortgages
before the 1980s because of government regulations. Warren Buffett,

2002 (report) Chairman's Letter, p. 14 about no central bank regulating
derivatives like the Federal Reserve does with (aboveboard) banking, p. 13
for ‘time bombs’, and p. 15 for ‘financial weapons of mass destruction’—
the latter two items and the source itself found via Partnoy and Skeel,
“Credit Derivatives,” p. 2, fnote 1. May, “Role of Securitization,” p. 2,
col. 2 about overcoming most government obstacles to mortgage securiti-
zation by the late 1980s, and p. 2, col. 1 about the extension of securitiza-
tion into increasingly lower quality debt. Ingo Fender and Peter Hördahl,
“Overview: markets hit by renewed credit woes,” BIS Quarterly Review
(December 2007), p. 4 says: “Subprime delinquencies have been on the
rise since 2005, and are expected to surpass previous peaks, especially for
the most recent mortgage vintages.” Bill Gross, “Does the Fed Know
What It's Doing?”, Fortune, Vol. 156, No. 8 (15 October 2007), p. 204,
col. 2 about ‘an end run around the banks’ (and their regulations) with a
resulting change in the high-to-low-test money multiplier (a concept I will
address later) for a single U.S. dollar from 5 or 6 as described in text books
for simple banking (loan making) to a multiplier of 10 or 20 for derivative
mechanisms. By the way, with a 10-percent reserve requirement, one
dollar can expand in the regular loan making process to a maximum of
$8.63, one hundred dollars to $996.75, one thousand dollars to $9,995.72,
and one million dollars to $9,999,993.37—it empirically looks like an
asymptotic limit of 10, generally the inverse of the fractional requirement,
but unqualified determination I leave to the mathematicians or the inter-
esting book I didn't read. “When it goes wrong...”, Economist, Vol. 384,
No. 8547 (22 September 2007), p. 85 about the change from the “originate
and hold” model of the 1980s led by ‘government-sponsored mortgage
giants’ and the jettison of (a convenient decoupling from) riskier loans by
savings and loans, and p. 87, col. 1 the payment of appraisers by the seller
of credit derivatives not the buyer, an unusual arrangement.
CGFS Paper No. 26, pp. 14–7 for a description of mortgage securitiza-
tion markets around the world and the securitization of U.S mortgages,
vested with $4.7 trillion of mortgage debt in mid-2005. Historical Tables,
Budget of the United States Government, Fiscal Year 2009, Government
Printing Office, table 1.1, p. 22 for the total budgetary receipts for fiscal
year 2005 of $2,153,859 million and outlays of $2,472,205 million, and
pp. 30–46, tables 2.1, 2.4, and 2.5 to calculate explicit taxation of
$2,116,407 million ($927,222 individual income tax; $747,664 social
insurance taxes; $278,283 corporation income tax; $42,002 unemployment
insurance; $73,094 excise tax; $24,763 gift and estate taxes; $23,379
customs duties and fees), unidentified ‘other receipts’ of $13,696 million
that may include a tax component, making tax receipts at most $2,130,103
million, inflationary Federal Reserve earnings of $19,297 million, retire-
ment payments of $4,459 million, and uncounted memorandum amounts
of $1,119 million customs duties and fees and $968 million in other
receipts. Flow of Funds Accounts of the United States: Flows and
Outstandings, Fourth Quarter 2005, release date of 9 March 2006, Board
of Governors of the Federal Reserve System, p. 102, table B.100, “Balance
Sheet of Households and Nonprofit Organizations,” for the net worth of all
U.S. Households and Nonprofit Organizations at the end of the 3rd quarter
2004 of $46,156.3 billion; Flow of Funds, fourth quarter 2006, release date
of 8 March 2007, p. 102, table B.100 for net worth at the end of the 3rd
quarter 2005 of $50,564.0 billion; each datum is from the last release to
report it. Gary Shorter, Bear Stearns: Crisis and “Rescue” for a Major
Provider of Mortgage-Related Products, CRS Report RL34420, Congres-
sional Research Service (CRS), The Library of Congress, 26 March 2008,
p. 2 for MBS at the heart of Bear Stearns' problems. Marc Labonte,
Financial Turmoil: Federal Reserve Policy Responses, CRS Report
RL34427, 4 December 2008, pp. 12–3 for $28.82 billion ‘loan’ (really
investment) to purchase Bear Stearns' ‘assets’ that JPMorgan Chase chose
to forgo along with $1.15 billion for ‘subordinate loan’ (a risky investment
effectively a nonrefundable fee to the extent any Fed losses may be offset).
Both CRS reports were obtained 4 June 2009 from Open CRS at
http://www.opencrs.com. CRS reports are spottily available from U.S.
Government websites and for this work in general have been obtained
from the Internet catch-as-catch-can.
131 para: 1980s
A savings bank is both a bank and a thrift. A savings and loan associa-
tion is only a thrift. History of the Eighties—Lessons for the Future,
Volume 1, An Examination of the Banking Crises of the 1980s and Early
1990s, Division of Research and Statistics, Federal Deposit Insurance
Corporation, December 1997, as accessed 31 January 2008 from the FDIC
website at www.fdic.gov, p. 168 (chapter 4) about saving and loans, S&Ls,
losing money for reasons in common with mutual savings banks, namely
rising interest rates and ‘asset/liability mismatch’, and pp. 211, 218–9, 230
(chapter 6) about the thrift models legally restricted to certain assets and
services ill-suited to the financial environment of high interest rates in the
1970s, also high in 1980, and to the competition from new types of depos-
itor accounts.
131 para: investigate
“The S&L Crisis: A Chrono-Bibliography” Web page at
http://www.fdic.gov/bank/historical/s&l/, as accessed on 31 January 2008,
about the enactment, rationale, and major provisions of the Garn-St
Germain Depository Institutions Act of 1982. History of the Eighties, p.
10 (chapter 1) about provisions of the Garn-St Germain Depository Institu-
tions Act of 1982 that expanded credit and increased competition, ulti-
mately contributing to a commercial real-estate market collapse (that's
what pyramids do), p. 175 (chapter 4) about legislation like Garn-St
Germain that increased the economic damage, pp. 39, 81 (chapter 1) for
the total estimated cost of savings and loans failures amounting to $160.1
billion with $132.1 billion covered by taxpayers, and for no burden to
taxpayers for less costly bank failures, and p. 232 (chapter 6) about the
total cost of mutual savings bank failures estimated at the end of year 1995
to be $2.2 billion. Timothy Curry and Lynn Shibut, “The Cost of the
Savings and Loan Crisis: Truth and Consequences”, FDIC Banking
Review (2000), Vol. 13, No. 2, the electronic version via the Web, p. 33
about the cost of savings and loan failures over the ten years starting with
1986 amounting to $152.9 billion with 81 percent or $123.8 billion
charged to the taxpayer.
132 para: both
Martin Luther King, Jr., a speech delivered in Atlanta, Georgia on 16
August 1967 in Clayborne Carson and Kris Shepard, eds., A Call to
(Atlanta: IPM, c2001), p. 194 for King's quote.
132 para: individualism
Robert D. Lee, foreword of Mohammed Arkoun, Rethinking Islam:
Common Questions, Uncommon Answers, trans. Robert D. Lee (Boulder,
Colorado: Westview Press, 1994), p. ix about the greatest strife of cultural
identity and political order having been ‘in the Third World and in predom-
inantly Muslim countries,’ and p. 139 identifying Robert D. Lee as a
professor of political science at Colorado College. Peter Moogk, La
Nouvelle France: The Making of French Canada—A Cultural History
(East Lansing: Michigan State University, c2000), pp. 67–70 about the
folly of French conformity taken to extremes and exploited by British indi-
vidualism. We have already studied China's decline, steeped in a religious
and familial paternalism in the 18th century, but consider late in the 20th
century modern China's experimentation with capitalism vis-à-vis the fall
of the Soviet Union. Taiwan's experiment with democracy and capitalism
represents another social application of individualism. Misapplied individ-
ualism is as troublesome as insufficient individualism because a wrong
way is simply not a right way. Dictatorships and poverty go hand in hand.
Cultures without sophistication for self-governance in general earn
widespread poverty. That's why importing inferior culture is a big deal.
Be glad to be a Westerner but not complacent. In America after the Civil
War swinish laissez faire of the rich and social ostentation of the imitative
middle class created the American plutocracy of the Gilded Age, complete
with widespread poverty, slave wages, and the national turmoil called the
Great Strike of 1877. The Roaring Twenties under prohibition and with its
hedonistic, maybe reactionary individualism created massive debt expo-
sure while insolvency in the wake of the Great War (World War I) was
brewing in the greater Western economy. That domestic debt exposure
made particularly painful the U.S. share of the worldwide Great Depres-
sion, a heaping helping of deflation from unmet war reparations and debt
on international loans, a condition suggestive of imprudent teamwork. The
United States was the world's greatest creditor nation at the time. Ben S.
Bernanke, “Nonmonetary Effects of the Financial Crisis in the Propagation
of the Great Depression,” American Economic Review, Vol. 73, No. 3
(June 1983), pp. 260–1 about the unusual extent of U.S. inside (insider?)
and small borrower debt developed over the 1920s. H. John Thorkelson,
“Great Depression,” EA–99, vol. 13, p. 334, col. 1 for the Great Depres-
sion as a worldwide economic disaster, and p. 344, col. 2 about the
economically unsound settlement of World War I, capital exports from the
United States that concealed weakness in the world economy, and credit
expansion within the United States that concealed low incomes. Elliot A.
Rosen, Roosevelt, the Great Depression, and the Economics of Recovery

(Charlottesville, Virginia: University of Virginia Press, 2005), pp. 8–22
about the unpaid reparations and debts related to World War I, interlocking
the economic fates of the United Kingdom, Germany, France, and the
United States, and developing into the Great Depression, pp. 9–10 about
(perilous?) Wall Street loans made in the decade ending June 1931 esti-
mated to have amounted to $2 billion, that figures to roughly $28 billion in
2008 dollars using the inflation calculator (itself using the Consumer Price
Index or CPI) at http://www.bls.gov on 3 April 2008 for conversion from
1931 to 2008 dollars but with no specificity of month and the result being
$27,854,342.11, pp. 28, 48 for the United States as the principal creditor
nation at the time, p. 24 about the economic impact permeating the British
Empire (to include India) and from India into China, and p. 235 for, amus-
ingly and not, the current U.S. economic fundamentals styled ‘Ponzi
finance’. Delbert A. Snider, Economic Myth and Reality (Englewood
Cliffs, N.J.: Prentice-Hall, Inc., 1965), p. 148 says:
The greatest irony of all is that the Soviet and American economic
systems have been displaying increasing tendencies to become more
alike. Starting from opposite ideological poles, they have been
forced by the set of problems common to all modern industrial soci-
eties to devise solutions falling in between the extremes of laissez-
faire markets and centralized authoritarianism.
Chapter 5: Socioeconomic Verity

133 epi: budget
Rufus C. Dawes, The Dawes Plan in the Making (Indianapolis: The
Bobbs-Merrill Company, c1925), p. 209 for the epigraph. Edward L.
Lach, Jr., “Rufus Cutler Dawes,” John A. Garraty and Mark C. Carnes,
eds., American National Biography, 24 volumes supplemented by later
publications (New York: Oxford University Press, 1999), vol. 6, p. 252,
col. 2 for Rufus Cutler Dawes, 30 July 1867–8 January 1940, and p. 253,
col. 1 for his expertise in political and financial affairs, and his reputation
as a solid businessman. The Dawes Plan was named after Rufus' brother
Charles, though Rufus had a role.
133 epi: Nation
Analytical Perspectives, Budget of the United States Government,
Fiscal Year 2007, Government Printing Office, p. 178 for the epigraph.
Analytical Perspectives, 2008, p. 178 was slightly revised to: “*x*x*
prices that would cover expenses.” Every citation of the Budget of the
United States is as accessed from the Government Printing Office Web
portal at http://www.gpoaccess.gov/usbudget/browse.html on 16 February
2008.
134 para: same

The Federal Reserve System: Purposes and Functions, 9th ed. (Wash-
ington: Board of Governors of the Federal Reserve System, June 2005),
online version, accessed 7 February 2008, p. 114 for a definition of the
federal funds rate, and pp. 3, 35 about manipulating the federal funds rate
to the Fed's target rate.
134 para: policy
Purposes and Functions, pp. 33, 2nd paragraph (1st whole paragraph)
and pp. 36–41 about open market operations. For the aforementioned
source, on p. 34 I would think the decline of electronic money satisfying
the reserve requirement would be offset by the paper money received;
maybe it doesn't count until it is in the vault or maybe the fee for paper is
substantial, but I question the given reason why the Fed generally accrues
U.S. Treasury securities; on p. 39, 2nd paragraph, inflationary earnings
that keep the Fed solvent are recast as ‘a need to drain Federal Reserve
balances’ for the sake of hitting the target rate of the monetary policy; I
have more to say infra on pages 559–60 within the endnote labeled ‘139
para: 2008’. Cheryl L. Edwards with Gerard Sinzdak, “Open Market
Operations in the 1990s,” Federal Reserve Bulletin (November 1997), an
online article accessed 7 February 2008 from the “Open Market Opera-
tions” Web page at http://www.federalreserve.gov/fomc/fundsrate.htm, pp.
866–7 about open market operations. The aforementioned article is
helpful but I think also confusing; its use of the term ‘rate’ seemed varied
and vague to me. “Repurchase and Reverse Repurchase Transactions”
Web page of the Federal Reserve Bank of New York as accessed 21
August 2006 at http://www.ny.frb.org/aboutthefed/fedpoint/fed04.html
provided a complementary explanation duly considered. 93rd Annual
Report 2006, Board of Governors of the Federal Reserve, pp. 324–6 about
the SOMA at the Federal Reserve Bank of New York used to hold securi-
ties bought outright and comprising a domestic component comprising
U.S. government securities and a foreign component with investments
denominated in foreign currencies. Every citation of an annual report of
the Fed's Board is as accessed from the “Reports to Congress” Web portal
at http://www.federalreserve.gov/boarddocs/rptcongress/ on 10 February
2008.
135 tab: 5.1
Tell ya later about “TellYaLater” values. Historical Tables, Budget of
the United States Government, Fiscal Year 2009, Government Printing
Office, table 1.3, p. 27 for annual budget surpluses and deficits by fiscal
year in billions of unadjusted or normal U.S. dollars, billions of fiscal year
2000 U.S. dollars, and percentage of the GDP from the same fiscal year.
Budget of the United States Government, Fiscal Years (2000 through 2008)
—Appendix, Department of the Treasury, Government Printing Office,
table of General Fund Receipt Accounts, account 20–065000, for the Fed
earnings transferred to the U.S. Treasury by fiscal year in billions of unad-
justed or normal U.S. dollars: $24,540, $25,917, $32,293, $26,124,
$23,683, $21,878, $19,652, $19,297, and $29,945 million, respectively.
136 para: percent

Historical Tables, Budget of the United States Government, Fiscal Year
2009, Government Printing Office, table 1.3, pp. 26–7 for annual budget
surpluses and deficits by fiscal year billions of fiscal year 2000 U.S.
dollars used for the historical comparison, and for the 1.1% change as
normalized by GDP from 2.4% in fiscal year 2000 to 1.3% in fiscal year
2001. Amy Belasco, The Cost of Operations in Iraq, Afghanistan, and
Enhanced Security, CRS Report RS21644, Congressional Research
Service, The Library of Congress, 14 March 2005, p. 4, table 2, for esti-
mated costs of military operations in Iraq ($124.8 billion) and Afghanistan
($53.8 billion) for the fiscal years 2001–2005, exhibiting a roughly 2-to-1
comparison. Statistical Abstract of the United States: 2008, U.S. Census
Bureau, as accessed on 18 February 2008 at http://www.census.gov
/prod/2007pubs/08abstract/pop.pdf, section 1, “Population,” p. 7, table 2
for a total U.S. population on 1 July 2006 of 299,801 thousand, including
all residents, itself including residents abroad serving in the military and
illegals, and though p. 43, table 42 shows a non-citizen population on
March 2006 of 21,775 thousand among a total population of 293,834 thou-
sand, the latter figure not in table 2, and nowhere is given the total popula-
tions of U.S. citizens or U.S. nationals so I can't calculate the per capita
debt burden on Americans. For editions of the U.S. abstract visit
http://www.census.gov/prod/www/abs/statab.html. My checking account
started 2006 paying in interest roughly 0.6% and ended the year at roughly
0.8%. A back-o'-the-envelope calc. is $828 * 0.007 = $6.
137 para: basis
Analytical Perspectives, Budget of the United States Government, fiscal
years 2007–2009, chapter 13, “Stewardship,” about the potentially
misleading use of the budget according to this budget report itself. Under-
standing Similarities and Differences between Accrual and Cash Deficits,
GAO-07-117SP, December 2006, U.S. Government Accountability Office,
p. 2 about the budget primarily measured on a cash basis and its scope
limited to the short term. Analytical Perspectives, Budget of the United
States Government, Fiscal Year 2009, p. 331 for a short description of the
U.S. budgetary process.
137 para: earlier
Publication 538, “Accounting Periods and Methods,” revision of March
2004, Internal Revenue Service (IRS), as accessed 25 February 2008 from
the IRS Web site at http://www.irs.gov, p. 15, col. 1 about the prohibition of
cash accounting and the requirement of accrual accounting for corpora-
tions other than S corporations with gross receipts over $5 million, and p.
12, col. 2 for reference to a C corporation as distinct from an S corpora-
tion. The Small Business Administration does a better job than the IRS
does posting on the Internet the relevant differences between a C corpora-
tion or plain corporation and an S corporation, going by the “Basic Struc-
tures” Web page accessed 6 March 2008 at http://www.sba.gov
/smallbusinessplanner/start/chooseastructure/START_BASIC_STRUCTUR
E.html. S corporations pass income directly to shareholders without an
intervening taxation. The one-two is called double taxation. Keep in mind
the C corporation and S corporation are business structures only to the

degree they are regulatory tax structures. 2005 Financial Report of the
United States Government, U.S. Department of the Treasury, p. 25 about
the history of U.S. Financial Reports, and pp. 36–7 for total net costs and
total revenues for fiscal years 2004 and 2005 in the vicinity of $2 trillion.
2007 Financial Report, pp. 41–2 for total net costs and total revenues for
fiscal years 2006 and 2007 over $2 trillion each. Every citation to a
Financial Report is as accessed from the “Special Publications: Financial
Reports of the U.S. Government” Web portal at http://www.gao.gov
/financial.html on 10 February 2008. Historical Tables, Budget of the
United States Government, Fiscal Year 2009, p. 323 about total expendi-
tures in fiscal years 2005–2007 of $3,854.1, $4,135.8, and $4,321.3
billion, respectively.
137 para: entities
Understanding Similarities and Differences between Accrual and Cash
Deficits, GAO-07-117SP, December 2006, U.S. Government Account-
ability Office, p. 2 about the unified budget deficit as the historical focus
of debate and media coverage, as opposed to net operating cost using the
accrual basis.
138 tab: 5.2
Understanding Similarities and Differences between Accrual and Cash
Deficits, GAO-07-117SP, pp. 6–7, 35–6 about the bases, terms of gain, and
terms of loss, p. 37 about limited exceptions to the cash basis of the
budget, especially the net budget result, p. 12 about liability, and pp. 2 for
the responsibility of the GAO to audit the consolidated financial state-
ments of the United States government, inferring the financial statements
within the annual Financial Report. 2007 Financial Report, p. 49 about
the use of the U.S. GAAP for financial statements of the report and not for
budgetary concepts and policies, and p. 159 about the relationships among
annual Financial Reports, consolidate financial statements, and U.S.
GAAP. See 31 U.S.C. 331(e) for the audit required from the Comptroller
General of the United States concerning the ‘financial statement’ that
‘shall reflect the overall financial position, including assets and liabilities,
and results of operations of the executive branch of the United States
Government.’ There are many unnamed reports in 31 U.S.C. 331. See 31
U.S.C. 1105 for the specification of contents of the U.S. budget sent by the
President to the Congress, absent of an audit requirement.
138 para: commonplace
Financial Report of the United States Government, (1998 through
2007), for net operating cost values for the top “TellYaLater” row of table
5.1 and the initial report of net operating cost for fiscal year 2007, all
values in billions of dollars: 1998 report, p. 44, ‘Decrease in net position’
of (109.9), 1999 report; p. 46, ‘Increase in net position’ of 101.3; 2000
report, p. 40, ‘Increase in net position’ of 53.3 not final; 2001 report, p. 49,
‘Net operating revenue/(cost)’ of (514.8) and for prior year of 39.6; 2002
report, p. 55, ‘Net operating cost’ of (364.9) and confirmed prior year;
2003 report, p. 59, ‘Net operating cost’ of (665.0) and confirmed prior
year; 2004 report, p. 61, ‘Net operating cost’ of (615.6) and for prior year
of (667.6); 2005 report, p. 62, ‘Net operating cost’ of (760.0) and

confirmed prior year; 2006 report, p. 39, ‘Net operating cost’ of (449.5)
and for prior year of (760.2), and 2007 report, p. 43, ‘Net operating cost’
of (275.5) and confirmed prior year. 2007 Financial Report of the United
States Government, pp. 13, 31 for auditor disclaimers, pp. 21, 23 for
subjective assumptions, and pp. 149–50 about annual inconsistencies.
2005 Financial Report of the United States Government, p. 27 for auditor
disclaimers, p. 8 for subjective assumptions, and p. 109, vide Note 17 and
p. 147 about (annual) inconsistencies, and p. 11 about the change in
accounting standards effected for fiscal years after 2002, another reason
the financial numbers, if spanning that transitional point, are less than
perfect.
138 para: expenditure
2005 Financial Report of the United States Government, pp. 28–9 about
the absence of disclosure of tax expenditures in any Government financial
statements. 2007 Financial Report of the United States Government, pp.
49 about the liability of social insurance programs like Social Security
recognized by GAAP only for amounts due and payable.
139 para: 2008
Fiscal Year 2009, p. 385 about outlays for defense spending and Social
Security payments, with the estimate of $820.1 billion, but see the next
cited source Historical Tables, p. 229 for the 2007 interest payment on
public debt of roughly $252 billion, a bit more than the value from 2007
Financial Report cited thereafter. Historical Tables, Budget of the United
States Government, Fiscal Year 2009, p. 55 about outlays for defense
spending and Social Security payments, with the estimate of $847,380
million. 2007 Financial Report of the United States Government, U.S.
Department of the Treasury, p. 41 about the net costs of the Department of
Health and Human Services and the Department of Defense in fiscal years
2007 and 2006, showing the preeminent prodigiousness attained by the
former and lost by the latter, p. 23, table 7 and p. 24 w/ chart O for largest
liabilities in 2007, p. 84 about the definition of ‘accrued’ liability, p. 24
about interest on the public debt as the largest (accrued) liability at the end
of fiscal years 2004–2007, p. 118 w/ chart 2 and p. 119 w/ chart 3 about
the crossover year 2017 and the projected shortfall, p. 46 for the $6,763
billion for projected Social Security liability and $12,292 (part A), $13,432
(part B), and $8,361 (part D) billion for projected Medicare liabilities as of
1 January 2007 for the period 2007–2081, and p. 22, table 6 and p. 41 for
the 2007 interest payment on public debt of $238.9 billion. 2003 Finan-
cial Report, p. 58 about the net costs in fiscal years 2003 and 2002,
showing the preeminent prodigiousness attained by the Department of
Defense by surpassing the Social Security Administration and the Depart-
ment of Health and Human Services. The Financial Reports of various
years show the two stated liabilities as uncontested by all others: 2007
report, p. 24, chart O; 2005 report, p. 12, chart E; 1998 report, p. 47; and
1997 report, p. 31. Fiscal Stewardship: A Critical Challenge Facing Our
Nation, GAO-07-362SP, January 2007, U.S. Government Accountability
Office, p. 9 about the liability representation as an investment requirement,

and p. 5 about the same greatest liabilities in 2006. 93rd Annual Report
2006, Board of Governors of the Federal Reserve, p. 265 for the $44,690
million in purchases for outright transactions of open market operations.
Budget of the United States Government, Fiscal Year 2009—Appendix,
Department of the Treasury, Government Printing Office, p. 973, vide
account 20–065000, about the Fed payment to the Treasury of $32,043
million in 2007 (observe that $45 billion is more than $32 billion) and the
nature of that payment type as either enacted or requested, and p. 972,
incidentally, for $429,978 million in interest on public debt in 2007—that
must include intragovernmental debt based on the similar proportions of
debt itself discernible from the Monthly Statement of the Public Debt,
dated 30 September 2007, U.S. Bureau of the Public Debt, for $5,049,306
million in public debt and $3,958,348 million in intragovernmental hold-
ings. The Fed generates income mainly from monetizing government debt
and secondarily from services roughly at cost. Earnings deposited with the
Treasury are incomes in excess of expenses. When treasuries mature they
pay face value and that includes the principle not just interest. Descrip-
tions stating the primary income of the Fed as ‘interest earned on govern-
ment securities that are acquired in the course of Federal Reserve
monetary policy actions’ or ‘interest on U.S. government securities that it
has acquired through open market operations’ deceptively omit how and
how lavishly the securities were acquired. “Federal Reserve Banks” Web
page http://www.federalreserve.gov/pubs/frseries/frseri3.htm as part 3 under
“The Structure of the Federal Reserve System” accessed 7 February 2008,
for the former quote about interest, and The Federal Reserve System:
Purposes and Functions, 9th ed. (Washington: Board of Governors of the
Federal Reserve System, June 2005), online version, accessed 7 February
2008, p. 11 for the latter quote about interest earnings. One could wonder
if the linguistic nuance is a positive policy. 93rd Annual Report 2006,
Board of Governors of the Federal Reserve, p. 328, col. 1, vide note (K):
“The Board of Governors requires the Reserve Banks to transfer excess
earnings to the U.S. Treasury as interest on Federal Reserve notes *x*x*.”
Technically, and truthfully, earnings of unadulterated interest to the
Federal Reserve are something the Treasury ultimately pays itself (minus
whatever Fed overhead) without expanding the money supply. It's absurd
to charter and maintain the Fed with phantom earnings like that. The orig-
inal purchase price from the Treasury (minus any interest payments the
Fed does not receive) is the only value actually gained by the Government.
A billion kept is a billion earned.
I wish to elucidate the distinction between the Fed's redeeming of U.S.
Treasury securities and the Fed's selling of U.S. Treasury securities. The
selling of securities destroys money, or can as with open market opera-
tions, in which case member banks must scramble for money to meet
reserve requirements a bit more. Redeeming the securities recirculates
money that the U.S. Treasury will spend twice. The money still exists and
steadily finds its way back to member banks. Money is supposed to circu-
late and supposed to balance out across the economy. If the Treasury actu-
ally saved the money instead of spending it the second time, presupposing
the Government lived within its means, the money would still likely end
up as a deposit in a bank, maybe the Treasury's general account at the Fed,

and not stay out of circulation forever. Destroying money (don't hold your
breath) is the Fed's job anyway. Redeeming the something-for-nothing
security simply makes the monetized loan to the Treasury a monetized gift,
along with normal money as accrued interest. The other post-inflationary
option is to extend the loan, to exchange matured securities for new ones.
The real alternative monetary action is for the Fed to abstain from buying
additional security holdings (with the attendant infusing of principal) and
therefore to abstain from competing with public investment money. The
result would be higher interest rates for investors and everyone else, and
from the cynic's viewpoint, it would only be a postponement to the infla-
tionary consequences. Better yet, the Treasury could stop competing with
private enterprise for investment money.
Monthly Statement of the Public Debt, U.S. Bureau of the Public Debt,
summaries of, accessed 18 February 2008 using the portal Web page at
http://www.treasurydirect.gov/govt/reports/pd/pd.htm, summary dated 30
September 2006 for a public debt of $4,843,121 million, and summary
dated 30 September 2007 for a public debt of $5,049,306 million. Trea-
sury Bulletin, March 2008, Financial Management Service, a bureau of the
U.S. Department of the Treasury, p. 41, table OFS–2, for estimated end-of-
month holdings by foreigner, using the second to the last column, of
$2,105.0 billion for December 2006 and $2,335.3 billion for December
2007 and observe the first three columns of table OFS–2 for total public
debt really meaning total government debt, for Federal Reserve and
Government accounts meaning the captured holdings of monetization
combined with intragovernmental holdings, and total privately held debt
really meaning public debt minus all U.S. Government holdings to include
the Fed, respectfully. The preliminary nature of the numbers is deduced by
comparing the data of table OFS–2 for the March 2008 issue with the
December 2007 issue and observing the data more than a year old had not
changed and the other data had. Observe the intragovernmental debt as
well as the total public debt are given by the Monthly Statement of the
Public Debt and subtracting the intragovernment debt from the combined
debt of the Government and the Fed in table OFS–2 of the Treasury
Bulletin and adding the so-called privately held debt of table OFS–2
should agree with the value of total public debt given by the Monthly
Statement.
139 para: questionable
Fiscal Year 2007, p. 183 for the quote.
140 para: security
2005 Financial Report of the United States Government, p. 28 for the
quote. Gross debt includes intragovernmental debt. However, the $46 tril-
lion and the derived per person statistics should not and do not include the
intragovernmental debt, amounting to $3,331,470,935,661.46 on 30
September 2005 according to the Debt to the Penny feature from the
Bureau of Public Debt via the Government section of the
TreasuryDirect.gov website as used 23 April 2008. For a compositional
explanation of the $46 trillion fiscal exposure see Fiscal Year 2005 U.S.
Government Financial Statements: Sustained Improvement in Federal
Financial Management Is Crucial to Addressing Our Nation's Financial
Condition and Long-term Fiscal Imbalance, a statement of David M.
Walker, Comptroller General of the United States; testimony before the
Subcommittee on Government Management, Finance, and Accountability,
Committee on Government Reform, House of Representatives, GAO-06-
406T, U.S. Government Accountability Office, 1 March 2006, table 1, p. 4.
140 para: method
Flow of Funds Accounts of the United States: Flows and Outstandings,
Fourth Quarter 2007, release date of 6 March 2008, Board of Governors
of the Federal Reserve System, p. 102, table B.100, “Balance Sheet of
Households and Nonprofit Organizations,” for the net worth of all U.S.
Households and Nonprofit Organizations at the end of 2005 estimated to
be $51,780.0 billion. “Bush Administration Breaks Record: Administra-
tion Borrows more from Foreign Nations than Previous 42 Presidents
Combined,” press release of The Blue Dog Coalition, 2 November 2005,
accessed 5 April 2008 at http://www.house.gov/apps/list/hearing
/ca18_cardoza/bush_administration_breaks_record.html, for the borrowing
statistics citing the U.S. Treasury Department as the source.
140 para: covered
“System Open Market Account Holdings” Web page, accessed 18
February 2008 at http://www.newyorkfed.org/markets/soma/sysopen
_accholdings.html, for the key insight that the securities of the SOMA
acquired by open market operations (i.e. debt monetization) serve the
purpose of collateral for U.S. currency in circulation. A representative
with the Federal Reserve Board of Governors kindly conveyed the same
idea with many others by email dated 26 September 2006 in response to
my questions. Academics validate the federal aversion to no inflation and
no monetary delights with the so-called liquidity trap. Negative interest
rates work as well mathematically as positive ones. The only kind of
interest rates that are intrinsically problematic are unpredictable interest
rates, but guaranteeing the risks taken by lenders and/or borrowers is
contrary to natural (market) selection, economic democracy, and just
having standards.
143 tab: 5.3
“Year-End Unliquidated Monetization Rewards, SOMA Holdings”
values came from the annual reports of the Federal Open Market
Committee (FOMC) at the Federal Reserve Bank of New York for the
calendar years 1998 through 2006, as accessed 18 February 2008 via the
portal Web page at http://www.newyorkfed.org/markets/annual_reports
.html, in billions if not specified: from the FMOC annual report of 1998, p.
41 (in appendix C) w/ p. 6 and p. 6, fnote 7 for $473.4 plus $79 million in
inflation compensation on the principal of U.S. Treasury inflation-indexed
securities (TIIS); of 1999, p. 38 (appendix B) w/ p. 14 and p. 14, fnote 7
for $517.3 plus $228 million for inflation compensation; of 2000, pp. 10,
29 and p. 10, fnote 9 for $532.9 inclusive of about $500 million in infla-
tion compensation; of 2001, p. 10, chart 5 and fnote 13 for $575.4 inclu-
sive of inflation compensation gaining $529 million for the year to a total
of $961 million (calculation makes prior year $432 million); of 2002, p. 11
w/ fnote 12 for $628 including a $300 million gain of inflation compensa-
tion totaling $1.3 billion (calculation suggests $1.261 billion); of 2003, p.
17 w/ fnote 8 for $667 inclusive of unspecified inflation compensation; of
2004, p. 19 for $717 without reference to inflation compensation and p. 22
about TIIS holdings that suggest a component of inflation compensation
(calculation per next item suggests $002.2); of 2005, p. 16 w/ fnote 10 for
$739.5 exclusive of inflation compensation gaining $001.1 for the year to
a total of $003.3; and of 2006, p. 21 w/ fnote 10 for $775.0 exclusive of
$003.9 in inflation compensation. The FOMC annual report for 2007 does
not revise the cited figures of previous years.
The remaining table data was extracted from the Board of Governors of
the Federal Reserve System's annual reports for the calendar years 1998
through 2006 as accessed 10 February 2008 via the portal Web page at
http://www.federalreserve.gov/boarddocs/rptcongress, specifically the 85th
Annual Report 1998 through 93rd Annual Report 2006. “Monetization
Disbursement, Net Purchases of Securities” values come from the “Federal
Reserve Open Market Transactions” tables; values are outright purchases
minus outright sales, in U.S. treasury securities and to a minor extent
federal agency obligations, in millions: Annual Report 1998 (ar98), p. 321,
$29,926 - $00,025; ar99, p. 351, $45,357; ar00, p. 337, $43,670; ar01, p.
343, $68,513; ar02, p. 277, $54,242; ar03, p. 265, $36,856; ar04, p. 271,
$50,507; ar05, p. 359, $28,136; and ar06, p. 265, $44,690. “Monetization-
Reward Liquidation, Redemptions of Securities” values come from the
“Federal Reserve Open Market Transactions” tables, in millions: ar00, pp.
337, $28,301 + $00,051; ar01, pp. 343, 345, $26,897 + $00,120; and ar03,
p. 267, $00,010 rounded to zero billion. “Year-End (Monetization?) Hold-
ings in Securities” values come from the “Federal Reserve Bank Holdings
of U.S. Treasury and Federal Agency Securities” tables and not the “State-
ment of Condition of the Federal Reserve Banks, by Bank” tables; the
‘FH’ and ‘SoC’ values differ before 2002 only, and the reason given to me
via mail dated 26 September 2006 by a representative with the Federal
Board of Governors was the change (in the method of temporary open
market operations) from matched sale-purchase (MSP) transactions to
repurchase agreements per note (3)(D) on page 312 of ar03; values are
outright holdings in U.S. treasury securities and to a minor extent federal
agency obligations, in millions: calendar year 1998, $473,406 (FH),
$452,479 (SoC); 1999, $517,326 (FH), $478,144 (SoC); 2000, $532,945
(FH), $511,833 (SoC); 2001, $574,873 (FH), $551,685 (SoC); 2002,
$629,416 (FH, SoC); 2003, $666,665 (FH, SoC); 2004, $717,819 (FH,
SoC) and ar05 restated $717,819 (SoC) but $717,816 (FH) then ar06
revised back to $717,819 (FH); 2005, $744,215 (FH, SoC); and 2006,
$778,915 (FH, SoC). “Year-End Federal Reserve Note Collateral(?) in
Securities” comes from the “Statement of Condition of the Federal
Reserve Banks” tables. “U.S. Treasury and Federal Agency Securities
‘Income’” values come from the “Income and Expenses” tables but for the
current year of the report and not the historical recap. “Federal Reserve
System Net Cost” values come from the “Income and Expenses of Federal
Reserve Banks” tables for the current year of the report and are calculated
as ‘total current income’ minus ‘net income before payment to U.S. Trea-
sury’ plus ‘dividends paid’. “Transfers to U.S. Treasury” values come
from the “Income and Expenses” tables but for the current year of the
report, except for the year 2000 as noted within the subsequent descrip-
tion; the total amount of year 1998 comprises the usual ‘interest’
amounting to $8,774,994 thousand and a statutory transfer of $17,785,942
thousand, and the total amount of year 2000, particularly challenging to
glean from the reporting, comprises $25,343,892 thousand as interest and
$3,752,000 thousand as statutory: see 87th Annual Report 2000, p. 349,
fnote 4 and p. 344 where one would expect an itemized statutory transfer
observe that $6,431,077 + $4,114,865 - $6,793,942 = $3,752,000. The
Federal Reserve reports itemized income from federal agency securities
with that of U.S. Treasury securities for the years 1998–2004 and not at all
for 2005 and 2006.
143 para: themselves
Warren Buffett, Chairman's Letter, dated 28 February 2007, 2006
Annual Report, Berkshire Hathaway Inc., accessed 15 March 2008 from
the Web site at http://www.berkshirehathaway.com, pp. 16–7 about Warren
Buffett's interesting assessment of the U.S. trade deficit to include concern
for the strength of the U.S. dollar, gentile implication of America's glut-
tonous behavior, prediction of a ‘severe political backlash’, and the
suggestion that ‘to expect a "soft landing" seems like wishful thinking,’
and p. 17 at the bottom, incidentally, indicates what sort of human char-
acter Warren Buffett values.
144 para: Reserve
Statistical Abstract of the United States: 2008, U.S. Census Bureau, as
accessed on 18 February 2008 at http://www.census.gov/prod/2007pubs
/08abstract/vitstat.pdf, section 2, “Births, Deaths, Marriages, and
Divorces,” p. 69, table 89 about the poor having the most children. Paul
B. Trescott, “Federal Reserve System,” Encyclopedia Americana: Interna-
tional Edition, 1999 ed., vol. 11, p. 75, col. 2 for an account of the Federal
Reserve run by men with balls and hearts enough to do the right thing
during the 1950s, maybe reflective of the general public, which either way
may be an important reason why the Korean War was less costly and
disruptive to regular Americans than the Vietnam War—the 1950s having
been a time when our grandparents were in charge—and incidentally, p.
76, col. 1 for the right thing regarding the money supply again following
the election of Ronald Reagan, and p. 76, col. 2 about the tendency of
Federal Reserve policy taking on the economic philosophy of the sitting
President. The aforementioned source is abbreviated as EA–99. Maury
Klein, Rainbow's End: The Crash of 1929 (New York: Oxford University
Press, 2001), pp. 76–7 about the Federal Reserve tightening credit to
combat postwar inflation in 1919 in opposition to the Treasury Department
that was selling U.S. bonds to pay for World War I and to the stock specu-
lators riding a Wall Street bubble, and the congressional inquiry into a
supposed conspiracy to cause deflation. It's still your grandfather's
Congress, liking inflation.
145 epi: races

Henry Pratt Fairchild, Immigration: A World Movement and Its Amer-
ican Significance (New York: The MacMillan Company, 1913), p. 274 for
the epigraph. “Fairchild, Henry Pratt,” The National Cyclopædia of Amer-
ican Biography, Being the History of the United States as Illustrated in the
Lives of the Founders, Builders, and Defenders of the Republic, and of the
Men and Women Who Are Doing the Work and Molding the Thought of the
Present Time (New York: James T. White & Company, 1965), vol. 47, p.
279 for the lifespan and vocation as sociologist of Henry Pratt Fairchild.
145 epi: professionals
“Strengthening American Competitiveness for the 21st Century,” a
hearing, Senate Committee on Health, Education, Labor, and Pensions, 7
March 2007, vide the written testimony of William H. Gates, chairman of
Microsoft Corporation, accessed from the U.S. Senate website at
http://www.senate.gov via the committee's portal at http://help.senate.gov
on 25 January 2008, for the quotes of William Gates. Mr. Gates' spoken
testimony is similar to but not the same as the written testimony from the
hearing.
145 para: population
Harald Baulder and Margot Corbin, “Foreign Farm Workers in Ontario:
Representations in the Newsprint Media,” circa 2002, University of
Guelph, assessed online circa 2006 about conflict between employers and
employees. Adrienne Millbank, A seasonal guest-worker program for
Australia?, Research Brief no. 16 2005–06, 5 May 2006, Social Policy
Section, Parliamentary Library, Parliament of Australia, accessed online
circa 2006 about conflict between employers and employees. Federation
for American Immigration Reform, http://www.fairus.org; ZaZona.com,
http://zazona.com; Immigration Watch Canada, http://www.immigration
watchcanada.org; and Migrationwatch UK (MWUK), http://www
.migrationwatch.co.uk, for opposition groups worldwide circa 2006. The
U.S. immigration calculation uses 1,122,373 immigrants from October
2004 through September 2005 and 295,734,134 estimated population in
2005 respectively from: Kelly Jefferys and Nancy Rytina, “U.S. Legal
Permanent Residents: 2005,” Annual Flow Report, Office of Immigration
Statistics, Department of Homeland Security, April 2006, and The World
Factbook 2005, U.S. Central Intelligence Agency, online version as down-
loaded May 2006. Estimated net gain of 342,200 non-British citizens in
2004 per Control of Immigration: Statistics United Kingdom 2004, U.K.
Home Department, November 2005, The Stationery Office citing the
Office for National Statistics. Mid-2004 population of 59.8 million per the
website of the U.K. Office for National Statistics www.statistics.gov.uk,
datum updated on 20 December 2005, accessed 13 June 2006. Immigrants
numbered 262,236 in 2005 per datum of preliminary partial release of
Facts and Figures: Immigration Overview—Permanent and Temporary
Residents 2005, Citizenship and Immigration Canada, accessed on 13 June
2006 at http://www.cic.gc.ca/english/research/menu-fact.html#2005. Esti-
mated 2005 Canadian population of 32,805,041 per CIA Factbook 2005.

The Triennial Comprehensive Report on Immigration, U.S. Citizenship
and Immigration Services, April 2002, about data not collected since 1957.
146 para: 1,122,373
INA 203(b)(5) for the requirement of 10 jobs per employment-creation
immigrant. Table 7 of the 2005 Yearbook of Immigration Statistics, down-
loaded separately, Office of Immigration Statistics, U.S. Department of
Homeland Security, accessed 7 July 2006, for 1,122,373 immigrants in
fiscal year 2005.
146 para: economy
Steven A. Camarota, Immigration in a Time of Recession: An Examina-
tion of Trends Since 2000, Center for Immigration Studies, November
2003 is the cited study.
146 para: naturalize
John Simanski, “Mapping Trends in Naturalizations: 1980 to 2003,”
Working Paper, Office of Immigration Statistics, U.S. Department of
Homeland Security, March 2006, pp. 1–2 for the quote.
147 para: IRCA
2003 Yearbook of Immigration Statistics, Office of Immigration Statis-
tics, U.S. Department of Homeland Security, September 2004, section 3
(Immigrants), p. 5 for two largest categories.
147 para: not
For past immigration levels: 2004 Yearbook of Immigration Statistics,
Office of Immigration Statistics, U.S. Department of Homeland Security,
January 2006, table 4, p. 15; and Table 7 of the 2005 Yearbook of Immi-
gration Statistics. The following source omits counting as parolees the
annual handful of Polish/Hungarian parolees from 2003–2005 via Public
Law 104–208: Kelly Jefferys and Nancy Rytina, “U.S. Legal Permanent
Residents: 2005,” Annual Flow Report, Office of Immigration Statistics,
Department of Homeland Security, April 2006, table 2, p. 2.
148 para: 1912
2004 Yearbook of Immigration Statistics, table 1, p. 5 for identifying all
fiscal years exceeding one million except 2005. Jefferys and Rytina, “U.S.
Legal Permanent Residents: 2005,” table 2, p. 2 for fiscal year 2005
exceeding one million.
148 para: loophole
IRCA summary, U.S. Citizenship and Immigration Services, accessed 7
July 2006 at http://www.uscis.gov/graphics/shared/aboutus/statistics
/legishist/561.htm, for hiring penalty.
149 para: abuse
The USCIS website is http://www.uscis.gov. INA 214(i) about specialty
occupation and bachelor's degree. INA 214(g)(4) specifies a six year limit.
The Immigration Act of 1990, Title II, Subtitle B, Section 222 authorizes
the Secretary of Defense to employ no more than 100 nonimmigrants of
exceptional nature for cooperative research. The USCIS instructions for
form I-129 show the H–1B visa is used in this case. INA 214(b) and (h)
about dual intent. “Employment Categories and Required Documentation”
Web page of the USCIS website, accessed 7 July 2006 at
http://www.uscis.gov/graphics/services/tempbenefits/ecrd.htm#anchorH1B
—the URL found to be unavailable 3 March 2008, but the information
here cited was simply relocated—about spouses and H–4 visas. H–1B
Foreign Workers: Better Controls Needed to Help Employers and Protect
Workers; Report to the Ranking Minority Member, Subcommittee on
Criminal Justice, Drug Policy, and Human Resources, Committee on
Government Reform, House of Representatives; U.S. General Accounting
Office (GAO); September 2000, p. 5 about vulnerability to abuse.
149 para: program
H–1B Foreign Workers, p. 7 problems with the system tracking H–1B
visas against the cap, and pp. 4-5 about the occupations and national
origins of the H–1B recipients.
149 para: cap
USCIS Approval of H–1B Petitions Exceeded 65,000 Cap in Fiscal
Year 2005, report OIG–05–49, Office of Inspections and Special Reviews,
Office of Inspector General, U.S. Department of Homeland Security,
September 2005, p. 1 about the motive for the investigation, and p. 2 citing
CIS “White Paper” dated 12 April 2005 and CIS–OIG email 27 June 2005
about the excess over the cap.
150 para: cap
“INS Announces H–1B Procedures As Fiscal Year 2000 Cap
Approaches” Web page, news release, Immigration and Naturalization
Service, dated 17 March 2000, accessed 8 July 2006 at
http://www.uscis.gov/graphics/publicaffairs/newsrels/H1Bcapre.htm, for the
announcement.
150 para: installment
Consolidated Appropriations Act, 2005 (Public Law 108–447 and 118
Stat. 2809), division J, title IV, subtitle B (H–1B Visa Reform Act of
2004), section 425, for the wording.
151 para: occupation
John Miano, The Bottom of the Pay Scale: Wages for H–1B Computer
Programmers, Backgrounder, Center for Immigration Studies, December
2005, p. 1 about the key findings of John Miano.
151 para: employers
“USCIS Reaches H–1B Cap,” USCIS press release, 12 August 2005,
about reaching the cap on final receipt date 10 August 2005. “USCIS
Reaches H–1B Exemption Cap for Fiscal Year 2006,” USCIS press
release, 18 January 2006, about reaching the cap on final receipt date 17
January 2006.
151 para: respectively

“Employment Categories and Required Documentation” Web page,
USCIS, accessed 7 July 2006 at http://www.uscis.gov/graphics/services/
tempbenefits/ecrd.htm#anchorH1B, unavailable 3 March 2008, for the
subsequent petitions each for exactly one worker and perhaps LCA
allowing multiple workers. “Temporary Benefits Employment Categories
and Required Documentation” Web page accessed 24 March 2008 at
http://www.uscis.gov/portal/site/uscis/menuitem.5af9bb95919f35e66f614176
543f6d1a/?vgnextoid=229c6138f898d010VgnVCM10000048f3d6a1RCRD&
vgnextchannel=91919c7755cb9010VgnVCM10000045f3d6a1RCRD about
subsequent petitions for one worker each. “Labor Condition Application
Cover Pages,” Form ETA 9035CP, expiration date 30 November 2008,
U.S. Department of Labor, accessed 24 March 2008 at
http://www.foreignlaborcert.doleta.gov/pdf/h1bcl.pdf (h-one-b-c-el), p. 3 for
the instruction for Labor Condition Applications, section D, line 4 where
the number of nonimmigrants is entered, and p. 5 about section F–1,
subsection 1 pertinent to H–1B employers only. Characteristics of
Specialty Occupation Workers (H–1B): Fiscal Year 2003, Office of Immi-
gration Statistics, U.S. Department of Homeland Security, November
2004, p. 4 for the total numbers of H–1B and H–1B1 petitions approved by
fiscal year and by initial vs. continuing nature.
151 para: degree
Characteristics of Specialty Occupation Workers (H–1B): Fiscal Year
2003, p. 2 about the H–1B report to Congress.
151 para: jobs
Occupational Outlook Handbook, 2006–07 Edition, Bureau of Labor
Statistics, U.S. Department of Labor, as accessed 8 July 2006 at
http://www.bls.gov/oco/, for the number of available jobs in 2004.
152 para: classification
USCIS, accessed 8 July 2006 at http://www.uscis.gov/graphics/services
/tempbenefits/ecrd.htm#anchorL1, about no cap on the L–1 visa and
spousal employment authorization. An L–1 visa cap would likely be stipu-
lated in INA 214. The L–1 visa gets is name from subparagraph INA
101(a)(15)(L) defining it. The characteristics of the L–1 visa are docu-
mented on the USCIS website. Review of Vulnerabilities and Potential
Abuses of the L–1 Visa Program, report OIG–06–22, Office of Inspections
and Special Reviews, Office of Inspector General, U.S. Department of
Homeland Security (DHS), January 2006, p. 10 citing DHS USCIS I–129
Instruction Manual, p. 3 about no labor certification requirement. INA 214
(b) and (h) about the doctrine of dual intent.
153 para: years
INA 214(c)(2)(D) about the services of intracompany transferees.
http://www.uscis.gov/graphics/services/tempbenefits/ecrd.htm#anchorL1,
and “Temporary Workers” Web page, http://www.uscis.gov/graphics
/services/tempbenefits/TempWorker.htm#anchorstay, both accessed 8 July

2006 from the USCIS website, about the expedition and permitted time
spans of L–1 visas.
153 para: occurring
Review of Vulnerabilities and Potential Abuses of the L–1 Visa
Program, report OIG–06–22, p. 1 for the first quote from a government
report about the L–1 visa program, but hyphens replaced by en dashes.
153 para: India
Review of Vulnerabilities and Potential Abuses of the L–1 Visa
Program, report OIG–06–22, p. 4 for the second quote from a government
report about the L–1 visa program, but a footnote mark dropped and
hyphens replaced by en dashes.
Elizabeth M. Grieco, Temporary Admissions of Nonimmigrants to the
United States in 2004, Annual Flow Report, Office of Immigration Statis-
tics, U.S. Department of Homeland Security, May 2005, table 3, p. 4 for
statistics of U.S. Customs admissions.
154 para: well
“H-1B Specialty (Professional) Workers, Employment & Training
Administration” Web page, U.S. Department of Labor, accessed 9 July
2006 at http://workforcesecurity.doleta.gov/foreign/h-1b.asp, for the
creation and cap of the E–3 visa. “USCIS Issues E–3 Specialty Occupa-
tion Worker Guidance,” USCIS press release, 6 January 2006, for spousal
employment authorization related to the E–3 visa.
154 para: year,
155 para: year
“Recommendation from the CIS Ombudsman to the Director, USCIS,”
memo, Office of the Citizenship and Immigration Services Ombudsman,
Department of Homeland Security, 28 August 2005, for the excerpt about
H–2B visas, but modified by removing a spurious double quote, by swap-
ping hyphens and dashes, and by capitalizing ‘Our’ in the short title of the
act which is specified at 119 Stat. 318.
“USCIS Reaches H–2B Cap for First Half of Fiscal Year 2006,” USCIS
press release, 16 December 2005, about reaching the cap 15 December
2005. “USCIS Reaches H–2B Cap for Second Half of Fiscal Year 2006,”
USCIS press release, 6 April 2006. Grieco, Temporary Admissions, table
3, p. 4 for H–2B admissions of fiscal years 2002–4.
155 para: 303,000
Temporary Migration to the United States: Nonimmigrant Admissions
Under U.S. Immigration Law, U.S. Immigration Report Series, Volume 2,
Research and Evaluation Division, Office of Policy and Strategy, U.S.
Citizenship and Immigration Services, January 2006, accessed 9 July 2006
at http://www.uscis.gov/graphics/aboutus/repsstudies/Nonimmigrants_2006
.pdf, table 1.2, p. 3 for other temporary work visa categories. Elizabeth M.
Grieco, Estimates of the Nonimmigrant Population in the United States:

2004, Population Estimates, Office of Immigration Statistics, U.S. Depart-
ment of Homeland Security, June 2006, p. 1 for estimates about the nonim-
migrant population in fiscal year 2004.
155 para: right
Table 7 of the 2005 Yearbook of Immigration Statistics identifies over
113,000 immigrants of fiscal year 2005 qualifying as laborers. The bulk of
immigrants, like the bulk of Americans, must rely upon wages or welfare.
Camarota, Immigration in a Time of Recession, pp. 2–3 about the millions
of foreign workers necessarily in the workforce who arrived in the United
States between March 1997 and March 2000 and between March 2000 and
March 2003 based on the Current Population Survey and about the esti-
mate by the author regarding the survey's population that there are perhaps
8 illegals for every present foreigner with a valid and temporary long-term
visa, mainly student or work visas.
156 para: down
Chris Isidore, “Jobless rate higher for U.S.-born than immigrants,”
online article of CNNMoney.com, 6 April 2006 http://money.cnn.com
/2006/04/05/news/economy/jobs_immigrants/index.htm accessed 10 July
2006, about the lower unemployment in 2005 of foreign-born workers.
“Foreign-Born Workers: Labor Force Characteristics in 2005,” BLS news
release, 14 April 2006, about median weekly wages.
157 epi: million
Addressing the New Health Care Crisis: Reforming the Medical Litiga-
tion System to Improve the Quality of Health Care, Office of the Assistant
Secretary for Planning and Evaluation, U.S. Department of Health and
Human Services, 3 March 2003, p. 3 citing Rep. Ellen Bard, ASPE/HHS
Communication, 13 December 2002 for the quote.
157 epi: prices
Allan B. Hubbard, “The Health of a Nation,” New York Times, 3 April
2006, p. A17, col. 1 for the quote of Hubbard within his op-ed piece—
found via Hendrik Hertzberg, “Consumer-Driven Health Care Will Not
Eliminate the High Costs of Private Care” in Healthcare, ed. Jan Grover
(Detroit: Greenhaven Press, 2007), p. 130. The epigraph from Hubbard
was also available on 2 October 2008 on the Web at
http://www.nytimes.com/2006/04/03/opinion/03hubbard.html. “Personnel
Announcement” Web page, a personnel announcement dated 10 January
2005 from the Office of the Press Secretary, accessed 2 October 2008 at
http://www.whitehouse.gov/news/releases/2005/01/20050110-11.html, for
the appointment by President George W. Bush on 10 January 2005 of
Allan B. Hubbard as Assistant to the President for Economic Policy and
Director of the National Economic Council.
157 para: litigation

Addressing the New Health Care Crisis, pages throughout about crisis,
p. 11 citing Office of the Assistant Secretary for Planning and Evaluation
using Council of Economic Advisors' Estimates, February 2003 for
malpractice premiums, and p. 11 for government spending on malpractice
coverage and defensive medicine.
157 para: believe
Gerard F. Anderson, Peter S. Hussey, Bianca K. Frogner, and Hugh R.
Waters; “Health Spending In The United States And The Rest Of The
Industrialized World;” Health Affairs, Vol. 24, No. 4 (July–August 2005),
pp. 903–14 but as described by Web pages accessed circa 2006 at
http://content.healthaffairs.org/cgi/content/short/24/4/903 and
http://www.house.gov/stark/news/109th/floorstatements/07-19_health.htm.
158 para: control
As accessed 27 September 2008 via the portal page at
http://www.nap.edu/catalog.php?record_id=12038#toc, Institute of Medi-
cine, Knowing What Works in Health Care: A Roadmap for the Nation, ed.
Jill Eden, Ben Wheatley, Barbara McNeil, and Harold Sox (Washington,
D.C.: The National Academies Press, 2008), pp. 7–8 about the general
inadequacy of credible information on medical treatments. Public Law
110–343, for the A bill to provide authority for the Federal Government to
purchase and insure certain types of troubled assets for the purposes of
providing stability to and preventing disruption in the economy and finan-
cial system and protecting taxpayers, to amend the Internal Revenue Code
of 1986 to provide incentives for energy production and conservation, to
extend certain expiring provisions, to provide individual income tax relief,
and for other purposes., a.k.a. the $700 billion bailout bill signed by Presi-
dent Bush on 3 October 2008. In that act is division A, the content of
which is the Emergency Economic Stabilization Act of 2008, of which sec.
122, at 122 Stat. 3790, raises the debt ceiling to $11,315,000,000,000. It
does not say, but should for accountability to us, that the ceiling was raised
from $10,615,000,000,000 set per 122 Stat. 2908 for an increase of $700
billion, the figure granted by the media. The debt ceiling is a longstanding
pretense.
158 para: sophistication
New York Times, 9 December 1949, p. 23 for the quote of Eisenhower
given in Galveston, Texas before a combined meeting of Galveston's
luncheon clubs on 8 December 1949, and for his position at the time of
president of Columbia University—identified via Sheri I. David, With
Dignity: The Search for Medicare and Medicaid (Westport, Connecticut:
Greenwood Press, 1985), p. 13 but found via the Quotations Book Web
page for the quote as accessed 25 November 2008 at
http://quotationsbook.com/quote/44827/. A transcript for a speech given by
Eisenhower at the Chamber of Commerce in Galveston, Texas on 8
December 1949, as an honored guest at a luncheon with many onlookers
waiting patiently for a speech that Eisenhower had not been informed he
would give, was obtained from The Dwight D. Eisenhower Presidential
Library & Museum Home website at http://www.eisenhower.archives.gov
along with other pre-presidential speeches. The transcript disagrees in

wording with the excerpts given by the article in the New York Times.
Either Eisenhower gave at least two speeches that day or both sources
refer to the same speech. The newspaper article is certainly more dramatic
than the transcript. If the article fails to accurately capture history in the
moment, it is to accurately capture history at the dawn of the 21st century.
I urge you to read both the article (which reads better than Nostradamus)
and the transcript for the cultural virtue of manliness. The article may be
available on microfilm at a library near you. The transcript was obtained
on 3 December 2008 at http://www.eisenhower.archives.gov/All_About_Ike
/Speeches/Pre-Presidential_speeches.pdf. Get the transcript while you
can, before feminists and tyrants remove it from the Federal Government's
website.
159 para: destructive
John R. Hogness, “How Our Health Care System Evolved” in Irwin
Goodwin, ed., Paying for America's Health Care (Acton, Massachusetts:
Publishing Sciences Group, Inc., c1973), p. 8 for Abraham Flexner's report
published in 1910 as the breakthrough to a modern heath care system, p. 9
for the acceleration of change in U.S. healthcare in the 1920s and 1930s
regarding the technology and prepaid insurance plans (that became) Blue
Cross and Blue Shield, and p. 10 for the opposition of the AMA to prepaid
group health plans but in the 1940s and early 1950s. Jonathan Cohn, Sick:
The Untold Story of American's Health Care Crisis—and the People Who
Pay the Price (New York: HarperCollins Publishers, c2007), pp. 5–7 the
beginning of modern medicine in the early 20th century, circa 1910, the
costs being prohibitive to many Americans by the 1920s, and at some point
in the early 20th century the beginnings of government-regulated universal
healthcare in other industrial countries, p. 8 about the popularization in the
United States of health insurance through a sizable employer, and p. 9 for
wage controls during World War II and the U.S. (individual) income tax
exemption (on employees' taxable income) for health insurance provided
by the employer. James G. Burrow, AMA: Voice of American Medicine
(Baltimore: Johns Hopkins Press, 1963), p. 178 for the spread of group
hospitalization schemes in the late 1920s, p. 177 for the seminal Baylor
Hospital Plan established in 1929 by Justin F. Kimball leading to the estab-
lishment of several non-profit hospital plans from 1929 to 1936, followed
by the advent of Blue Cross plans, p. 247 for the inception of the Blue
Cross Plans in 1937 (but cf. the BCBS timeline cited infra) that made
hospitalization insurance a national movement, p. 228 w/ p. 173 for the
author's distinction between contract practice (providing group care per
contract) and voluntary group health insurance, pp. 173–84 for the polit-
ical opposition of the AMA to group contract practice (servicing patient
pools grouped by organization) in the 1920s, pp. 230–51 for the political
opposition of the AMA in the 1930s to voluntary health insurance (insur-
ance not a compulsory state-run variety nor a contract variety with fixed
prepayment and unfixed amount of service, an insurance mainly useful to
the working class) except those run by local physicians (cf. p. 332 and note
p. 231 for ‘denouncing *x*x* any voluntary plans except those initiated by
local societies’), p. 140 about the AMA's objection to intermediaries
buying physicians services at wholesale and selling them at retail, p. 140,

fnote 21 for reference to ‘many of the long-recognized defects of contract
practice’, and (for comparison to Hogness, p. 10 listed supra in this para-
graph) p. 251 w/ fnote 63 for the tepid, conditional acceptance by the
AMA of voluntary health insurance—the source by Burrow found via
Monte M. Poen, Harry S. Truman Versus the Medical Lobby: The Genesis
of Medicare (Columbia: University of Missouri Press, 1979), p. 13, fnote
31. The timeline posted online by the Blue Cross and Blue Shield Associ-
ation (BCBS), accessed 4 November 2008 from the BCBS website at
http://www.bcbs.com, for the first ‘Blue Cross Baby’ born in Durham,
North Carolina on 27 December 1933, the commissioning of the first
poster with the Blue Cross symbol in 1934, the first meeting of Blue Plan
executives in 1937 in Chicago, the commissioning in 1939 by the head of
the Buffalo Blue Shield Plan of the creation of the Blue Shield symbol, the
creation in 1946 of the Blue Cross Commission that is the early national
organization of Blue Cross Plans, the creation in 1947 of the Associated
Medical Care Plans that is the first national organization of Blue Shield
Plans, and the merging in 1982 of the separate associations of Blue Cross
and Blue Shield into the Blue Cross and Blue Shield Association.
38 Stat. 114–202, for An Act To reduce tariff duties and to provide
revenue for the Government, and for other purposes., the Act of 3 October
1913, ch. 16, pp. 166–71 for personal income tax, p. 168 for the taxation
on individual net income earned on and after 1 March 1913, pp. 169–77
for corporate income tax, p. 174 taxation on corporate net income earned
on and after 1 March 1913, and p. 202 for the act taking effect, unless
otherwise specified, on the day ‘following its passage’ and the approval (of
President Wilson) on 3 October 1913. The identification of 95 Stat. 801 as
the first conditional requirement on tax deductibility of heath care
coverage for employees was determined by inspection of 26 USC 2006 ed.
162 notes. 95 Stat. 357–933, for the Omnibus Budget Reconciliation Act
of 1981, Public Law 97–35, p. 801 for the addition of paragraph (h) with a
requirement that group health plans not discriminate against the treatment
of end stage renal disease effective with tax year 1982, p. 933 for the
signature of the President on 13 August 1981 making the act a law. 56
Stat. 798–985, for the Revenue Act of 1942, the Act of 21 October 1942,
ch. 619, p. 798 for the short title Revenue Act of 1942, p. 802 for Title 1
regarding individual and corporate income taxes and the title's applica-
bility unless otherwise stated to ‘taxable years beginning after December
31, 1941’, and pp. 825–6 for sec. 127 regarding deduction for medical,
dental, etc., expenses for individual income tax. The wording of the
amendment to section 23 of the Internal Revenue Code by 56 Stat. 825–6
includes the key wording ‘for medical care of the taxpayer, his spouse, or a
dependent.’ I do not know what section 23 was at the time of that amend-
ment, but the original at 53 Stat. 12–6 is titled ‘Deductions from Gross
Income’ and treats taxation of both individuals and corporations. 56 Stat.
825–6 does not explicitly state the applicability of individual and corporate
taxation, which the legislatures should have done, so we are left with the
weak wording that seems to be inapplicable to corporate taxation since
literally there can not be ‘medical care of corporations’—yes, this is of
what the job security of trial lawyers and judges are made.
160 para: 1950s

Cohn, Sick, pp. 33–7 about the market transition in the 1950s from the
‘community rate’ plans that made Blue Cross an icon and were a de facto
standard to the ‘experience rating’ plans of commercial insurers, creating a
catch-22. Burrow, AMA, pp. 184, 232, 246 for the reserve in the AMA's
opposition to pooling arrangements of the 1920s and 1930s, and pp. 354,
355, 387 for the AMA's opposition in the 1940s and 1950s described as
‘hammering hard and mercilessly’ and ‘vigorous’, and pp. 354–85 for
chapter 17 detailing the AMA's contest with the Truman administration,
inferred to have been fierce by the chapter's title “The AMA at Armaged-
don.” Poen, Versus, p. 140 for the campaign of the AMA against Truman's
healthcare initiative as ‘socialized medicine’. David, With Dignity, p. 4 for
the tremendous growth of Blue Cross and Blue Shield coverage in the
1940s and 1950s not benefiting the elderly much, the distinction the Blue
Cross plans made between workers and retirees, and half of all health
insurance policies purchased by corporations (for employees) from
commercial carries by 1957, leaving Blue Cross with more costly clients
and forced to raise its rates beyond the means of retirees living on a
pension or Social Security benefits.
160 para: 1990s
Poen, Versus, pp. 210 for President Kennedy's adoption of Truman's
health program as part of his New Frontier agenda. Burrow, AMA, p. 386
for the proposal of the Kennedy administration to provide for hospitaliza-
tion of the elderly via the social security system. Cohn, Sick, p. 92 for
John Kennedy's promise of ‘Medicare’, p. 120 for the ceremonial signing
at Truman's home, pp. 65–6 for the support of Nixon's advisers for federal
support of HMOs, Nixon's signing of the HMO Act in 1973, the role of
large employers, and the shift in the fraction of HMOs organized as for-
profit companies from just over a tenth in 1981 to two-thirds by 1997, and
p. 162 for the discrepancy in price between insured and uninsured health-
care. 79 Stat. 286–423, for An Act To provide a hospital insurance
program for the aged under the Social Security Act with a supplementary
medical benefits program and an expanded program of medical assistance,
to increase benefits under the Old-Age, Survivors, and Disability Insur-
ance System, to improve the Federal-State public assistance programs, and
for other purposes., Public Law 89–97, p. 291 for the start of Title XVIII—
Health Insurance for the Aged, which is Medicare, p. 343 for the start of
Title XVIII—Grant to States for Medical Assistance Programs, which is
Medicaid, and p. 423 for the Presidential approval given 30 July 1965 at
5:19 p.m. Donald L. Barlett and James B. Steele, Critical Condition: How
Health Care in America Became Big Business—and Bad Medicine (New
York: Doubleday, 2004), pp. 88–9 for Nixon's support of HMOs and the
termination of federal funding for HMOs at the end of September 1981,
pp. 92–3 for the conversion of HMOs into publicly traded companies, pp.
94–5 for the Wall Street boom of the 1980s fueled by the purchase of
hospitals and clinics by publicly traded companies, pp. 16–8 for the secret
gouging of the uninsured uncovered by the activist Kevin Brendan Forbes
in 2001, and pp. 115–6 for the anecdotal experience of a nurse who recol-
lects the start of callous cost-cutting measures in 1993. I recall healthcare
costs were a prominent topic of office conversation a few years earlier.

Grover, ed., Healthcare, p. 187 for a definition of HMO to include the
licensing of HMOs by each of the States and a gatekeeper role but
performed by primary-care physicians for HMOs. Using data from the
source cited infra for figure 5.1, the value of 11 percent for 1965 is the
rounded value of 4.8/42.2 = 11.37 and the given 11.4 percent, and the
value of 33 percent for 2006 is the rounded value of 704.9/2105.5 = 33.48,
a possible rounded value for the indeterminate datum 33.5 percent, and has
the advantage of not contributing to an overstatement of the federal
government's increased expenditures on healthcare.
161 fig: 5.1
File ‘nhegdp06.zip’ downloaded from the “Historical” Web page
accessed 30 September 2008 at http://www.cms.hhs.gov/NationalHealth
ExpendData/02_NationalHealthAccountsHistorical.asp#TopOfPage, for the
data from the Centers for Medicare & Medicaid Service used for the graph
of U.S. healthcare spending.
161 para: here
100 Stat. 82–391, for the Consolidated Omnibus Budget Reconciliation
Act of 1985, Public Law 99–272, pp. 164–7 for the statute provisions of
sec. 9121 commonly dubbed EMTALA, and p. 391 for the (presidential)
approval on 7 April 1986. A search of bills with the Thomas portal on 4
November 2008 covering the 101st through 110th Congresses shows the
earliest use of the full-length term and its acronym form EMTALA in
Congressional legislation, since 1988 if not simply ever, was by the 106th
Congress (1999–2000), as shown in the following table.
Bill Date Introduced Has Full-length Has ‘EMTALA’
(dd-mm-yy) Name
HR. 3397 16-11-99 X
S. 2888 19-07-00 X
HR. 4992 27-07-00 X
HR. 5304 26-09-00 X X
HR. 5291 26-09-00 X X
HR. 5543 25-10-00 X X
HR. 5601 30-10-00 X X
HR. 5612 01-11-00 X X
HR. 5661 14-12-00 X X
162 para: specify

100 Stat. 399–401, for the Health Services Amendments Act of 1986,
Public Law 99–280, p. 400 for the funding of migrant health centers
provided for fiscal years 1987 and 1988, and p. 401 for the (presidential)
approval on 24 April 1986. 76 Stat. 592, for An Act To amend title III of
the Public Health Service Act to authorize grants for family clinics for
domestic agricultural migratory workers, and for other purposes., Public
Law 87–692, p. 592 for the beginning of the grant program and (presiden-
tial) approval of the act on 25 September 1962. Volume 100 of the U.S.
Statutes at Large, p. 1224 for Crack/Cocaine Awareness Month, p. 832 for

Walt Disney Recognition Day, p. 1225 for National Civil Rights Day, p.
680 for National Save American Industry and Jobs Day, p. 754 for Let
Freedom Ring Day, p. 755 National Immigrants Day, p. 833 for Emer-
gency Medical Services Week, p. 835 for National Tourism Week, and p.
818 for the revision of the debt ceiling to $2,111,000,000,000. The notes
of 31 U.S.C. 3101 document that the debt ceiling was in fact raised, from
$2,078,700,000,000.
162 para: Washington
Health, United States, 2007: With Chartbook on Trends in the Health of
Americans, U.S. Department of Health and Human Services, as down-
loaded on 30 September 2008 at http://www.cdc.gov/nchs/data/hus
/hus07.pdf, p. 376, vide table 122 for the Consumer Price Index data
leading to the respective initial calculations 130.7/82.4 = 1.6, 178.0/69.2 =
2.6, 181.7/72.5 = 2.5, and 160.8/76.5 = 2.1, finished by subtracting 1 and
multiplying by 100. Cohn, Sick, p. 105 for bus trips provided by
entrepreneurs by the late 1990s. Barlett and Steele, Critical Condition, p.
32 for the insulation of employees from rising health care costs until the
late 1990s when employers started to gradually shift costs onto their
employees and then dropping retiree health care benefits.
163 para: law
117 Stat. 2066–2480, for the Medicare Prescription Drug, Improve-
ment, and Modernization Act of 2003, Public Law 108–173, p. 2480 for
approval (signature of President Bush) on 8 December 2003, pp. 2422–4
for the ‘improvements’, EMTALA defined, and the TAG, pp. 2432–5 for
the emergency room care of illegals, pp. 2467–8 for the new waiver provi-
sions, p. 2464 for amendment to the FFDCA that replaced sec. 804 (21
U.S.C. 384), and p. 2469, vide subpar. (l)(2)(A) for the determination of
the effective date by the regulations to be promulgated by the (HHS)
Secretary per (b) on page 2464, which must have been soon after the
enactment of the act. The TAG's final report, downloaded 9 October 2008
via a link from the “EMTALA TAG” Web page at http://www.cms.hhs
.gov/FACA/07_emtalatag.asp, p. iii for the letter of transmittal dated 2
April 2008. Foreword, Congressional Digest, Vol. 82, No. 9 (November
2003), p. 257 for most prescription drugs imported into the United States
having been produced in the United States and being imported illegally
and the provision of a law enacted in 2000 requiring certification by the
SHHS of regulations to permit imports, something that was never imple-
mented (but note the provision was not replaced until 8 December 2008)
because neither Shalala nor Thompson agreed to the requisite certification.
“Safety Considerations: FDA Guidelines and Protections,” Congressional
Digest, (November 2003)—citing for the entire article “Imported Drugs
Raise Safety Concerns,” FDA Consumer Magazine (September–October
2002)—p. 266, col. 1 for the illegality of not only importing prescription
drugs without FDA approval but of moving such drugs across State lines
without FDA approval, p. 267, col. 1 for Donna Shalala and Tommy
Thompson concluding that the general reimportation of drugs could not be
done safely—another article on p. 271, col. 1 tells us the rejections were
respectively announced in late 2000 and in July 2001. 114 Stat. 1549—
1549A–97, for An Act Making appropriations for Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
programs for the fiscal year ending September 30, 2001, and for other
purposes., Public Law 106–387, pp. 1549A–35—1549A–40 for the prior
provisions of sec. 804 on the importation of prescription drugs with the
regulations for doing so to be promulgated. “Blagojevich and Emanuel
ask HHS Secretary Thompson to let Illinois import approved Canadian
prescription drugs” Web page, a press release dated 22 Dec 2003, accessed
2 October 2008 at http://www.illinois.gov//PressReleases
/ShowPressRelease.cfm?SubjectID=32&RecNum=2549, the second pair of
forward slashes is accurate, for the importation of prescription drugs by
the Cities of Boston and Springfield and the State of New Hampshire
without approval from the federal government.
164 para: stated, prosecuted, alone
“Rod R. Blagojevich (D)*” Web page, accessed 4 November 2008 at
http://elections.foxnews.com/candidate/rod-r-blagojevich/, for Blagojevich's
Democratic membership. The search page interface for the Congressional
Record of the 108th Congress (2003–2004) of the Thomas portal of the
U.S. Library of Congress, accessed 11 November 2008, for Representative
Rahm Emanuel representing Illinois' 5th district. The Biographical Direc-
tory of the United States, an online resource of the U.S. Government, as
accessed 4 November 2008, for Rahm Emanuel being a Democratic
Representative from Illinois from 2003 until 2008 (the last year then avail-
able). “Governor Blagojevich and Congressman Emanuel Look to Europe
As Possible Source of Prescription Drug Importation” Web page, a press
release dated 20 April 2004, accessed 2 October 2008 at
http://www.illinois.gov/PressReleases/ShowPressRelease.cfm?RecNum=29
69&SubjectID=10, for the Governor's announcement and the quote from
(Rep.) Emanuel. “Drug Importation Policy: Current Laws and Issues for
Debate,” Congressional Digest, Vol. 82, No. 9 (November 2003)—citing
for the entire article Importing Prescription Drugs: Comparison of the
Drug Import Provisions in the Medicare Reform Bills, H.R. 2427, and
Current Law, dated 8 October 2003, a CRS report, U.S. Library of
Congress—p. 264, col. 2 for the limiting of drugs to the Canadian market
to prevent reimporation to the United States by AstraZeneca, Glaxo-
SmithKline, Pfizer, and Wyeth. A Web page facsimile of a letter dated 17
March 2006 from Randall W. Lutter, Associate Commissioner for Policy
Planning, FDA, U.S. Dept. of Health and Human Services to Steven M.
Saxe, Director of the Board of Pharmacy, Washington State's Department
of Health, as accessed 2 October 2008 at http://www.fda.gov/oc/opacom
/hottopics/importdrugs/saxe031706.html, for the several court victories of
the FDA, or the Federal Government at least, cited as United States v. Rx
Depot, Inc., 290 F. Supp. 2d 1238 (N.D. Okla. 2003) and Vermont v.
Leavitt, 405 F.Supp.2d 466 (D. Vt. 2005) and Andrews v. HHS, No. 04-
0307, 2005 U.S. Dist. LEXIS 5710, at *8-*9 (D.D.C. Mar. 31, 2005), for
the denial of waiver to Washington State, and for the quote, with
unmatched right parenthesis, indicating a virtual ban on drugs from
Canada (the only country of origin not plainly banned outright by MMA).
Cohn, Sick, pp. 224–5 for the lower overhead of Medicare in comparison
to health care via private insurers. Barlett and Steele, Critical Condition,
p. 64 for the fraud-friendly regulation of Medicare, pp. 72–3 for the fines
agreed by HCA Inc. in the early 20-00s totaling $1.7 billion for fraud of
Medicare, Medicaid, and the military's TRICARE health care program,
including a settlement for $250 million in 2000 exclusively for Medicare
fraud, pp. 36–7, 198, 214 for the pharmaceutical industry as the most prof-
itable industry in the United States and the prohibition by Congress of
negotiation by Medicare for lower drug prices, p. 205 for the change in
FDA regulation of drug company advertisements in 1997 and 2001, and
pp. 38–44, 55, 67–8 for more specifics on the FDA's past efforts that you
can judge for yourself.
165 para: pimps
Barlett and Steele, Critical Condition, pp. 128–33, 164–76 about ruth-
less cost controls imposed on doctors by insurers, pp. 235–6 for the U.S.
health care system as a fragmented collection of special interest organiza-
tions, not functionally a system at all (more correctly alluding to laissez
faire than a free market, but there is also a system or subsystem of social-
ized medicine), pp. 211, 214 for misinformation given to doctors about
drugs to drive up sales, and pp. 64–5, 68 for the profits drug companies
shared with doctors who recommend and prescribe their drugs.
165 para: us
Barlett and Steele, Critical Condition, pp. 86–7, 115 for the efficiency
squeeze by Wall Street on nurses, causing burn out, and the artificially
created shortage, and p. 56 for the 16-year murder spree of nurse Charles
Cullen, resulting in scores of deaths. “Since When Is It a Crime to Be
Human” Web page, accessed 6 October 2008 at http://www.ismp.org
/pressroom/viewpoints/julie.asp, about criminal liability of nurses who can
only be human (though the expectations of government and healtharchy
may be otherwise). Showing content taken from New Jersey Nurse
(May/June 2005), “Acting Governor Codey Signs Health Care Profes-
sional Responsibility and Reporting Enhancement Act” Web page,
accessed 16 October 2008 at http://findarticles.com/p/articles/mi_qa4080
/is_/ai_n13643473, for Cullen's nursing career from 1987 to 2004 at 10
hospitals in New Jersey and Pennsylvania and his arrest on 12 December
2003, which seems to suggest he worked as a nurse after his arrest.
165 para: aviation
“HCA: Our History” PDF document, downloaded on 2 October 2008
from http://www.hcahealthcare.com/CPM/hca-ourhistory.pdf, for the history
of HCA. “Thomas F. Frist, Jr., M.D.” Web page accessed 2 October 2008
at http://www.hcahealthcare.com/CustomPage.asp?guidCustomContentID
={37D1D4ED-8CB6-466C-896B-F5F411234988}, for the executive posi-
tions held by Thomas F. Frist, Jr. “Board Composition” Web page
accessed 2 October 2008 at http://www.hcahealthcare.com
/CustomPage.asp?guidCustomContentID={8B66AE7C-1E07-4DEE-A47E-
D48F4996D477}, for the HSA board memberships of Frists II and III.
“Thomas F. Frist, III” Web page accessed 2 October 2008 at
http://www.hcahealthcare.com/CustomPage.asp?guidCustomContentID={E
456041A-B3BB-4D18-8162-EDCBC8CA43AD}, for the favored recreational
activities of Thomas F. Frist, III.
166 para: Inc.
Barlett and Steele, Critical Condition, pp. 72–3 about Frists Senior and
Junior and Senator Bill Frist. and the $1.7 billion paid by HCA. “FRIST,
William H.” Web page from the Biographical Directory of the United
States Congress, accessed 2 October 2008 at http://bioguide.congress.gov
/scripts/biodisplay.pl?index=F000439, for the medical and senatorial
careers of Bill Frist. HCA 2002 Annual Report, downloaded on 2 October
2008 from the “Annual Reports” Web page at http://phx.corporate-
ir.net/phoenix.zhtml?c=63489&p=irol-reports, p. 40 for public announce-
ment in 1997 of the investigation of HCA. “HCA - The Health Care
Company & Subsidiaries” Web page, a press release from the U.S. Dept.
of Justice (DOJ) dated 14 December 2000, accessed 2 October 2008 at
http://www.usdoj.gov/opa/pr/2000/December/696civcrm.htm, for the agree-
ment to pay over $840 million and the involvement of the FBI. “Largest
Health Care Fraud Case in U.S. History Settled” Web page, a DOJ press
release dated 26 June 2003, accessed on 2 October 2008 at
http://www.usdoj.gov/opa/pr/2003/June/03_civ_386.htm, for the agreement
to pay the United States $631 and to pay CMS another $250 million, to
projected total settlement for the DOJ's investigation being $1.7 billion,
the largest recovery for health care fraud in the United States by far. HCA
2003 Annual Report, similarly downloaded, p. 43 for $900 million
including $60 million in accrued interest, paid to the government during
2001, $641million including $10 million in accrued interest paid to the
DOJ during July 2003, the $17.7 million and $33 million paid in June
2003 in relation to state claims against HCA, and the $230 million paid in
June 2003 to CMS. “W. Lee Rawls - Senior Counsel to the Director” Web
page, accessed 2 October 2008 at http://www.fbi.gov/libref/executives
/rawls.htm, for Mr. Rawls named the FBI Director's Senior Counsel in
September 2007 and having been Chief of Staff to Majority Leader Bill
Frist.
166 para: report,
167 para: programs
“Health Care Fraud and Abuse Control Program Report” Web page at
http://www.oig.hhs.gov/publications/hcfac.asp was accessed on 17 October
2008 to download the pertinent copies of the annual reports. The Depart-
ment of Health and Human Services and The Department of Justice Health
Care Fraud and Abuse Control Program Annual Report For FY 2006
(November 2007), p. 8 for the quote.
167 para: executives
Barlett and Steele, Critical Condition, pp. 132–54 for the quintessential
story of a healthscare executive using his companies intermediate position
to liquidate a sliver of the U.S. economy and the vitality of numerous lives
and make a monetary withdrawal as if from a disposable ATM, and p. 154
for the ruined lives and the executive's gated home that the executive
protected with a trust, p. 178 about hospital and insurance bills seemingly
designed to trick recipients into making payments not owed, pp. 15–6, 18,
23 for the uninsured price being from three to ten times greater than the
insured price, p. 16 for non-profit and all other types of hospitals charging
the uninsured drastically more, and pp. 21–3 for healthcare creditors
garnishing wages and taking homes. I know firsthand of processing state-
ments from one insurer designed to look like bills; it was no accident.
Cohn, Sick, pp. 29–30, 45 on the futility of financial recovery for victims
of healthcare scams, pp. 132, 150 for executive salaries or annual compen-
sation in the millions, p. 162 for the uninsured price sometimes being four
times greater than the insured price, and pp. 155–7 for hospitals collecting
debts with a lien on a debtor's home or the help of police arrests.
168 para: services
117 Stat. 2066–2480, for the Medicare Prescription Drug, Improve-
ment, and Modernization Act of 2003, Public Law 108–173, pp. 2469–79
for the creation of health savings accounts (HSAs). Grover, ed., Health-
care, pp. 187–8 for a definition of an HSA to include tax-free contributions
and the requirement of a high-deductible health (insurance) plan.
168 para: real
Steven Greenhouse and Michael Barbaro, “Wal-Mart Memo Suggests
Ways to Cut Employee Benefit Costs,” New York Times, 26 October 2005,
pp. C1–2 for the Wal-Mart memo—found via Paul Krugman and Robin
Wells, “Consumer-Driven Health Plans Erode Health Care for All Ameri-
cans” in Healthcare, ed. Jan Grover, p. 124. According to the Times
article, the memo became a public issue when nonprofit group Wal-Mart
Watch anonymously received a draft through the mail. The version
provided to the New York Times was available from their website as late as
28 October 2008.
169 para: accordingly
The purchase of pink tennis balls are advertised with support for breast
cancer research. Prostate cancer is no less prevalent or deadly than breast
cancer, but breasts are sexy. How rewarding has breast cancer research
been with the resources it has consumed? Has anyone asked?
169 para: both
Barlett and Steele, Critical Condition, p. 5 for doctors, insurers, and
patients cheating each other and federal and state governments.
171 para: government
Foreword, Congressional Digest, (November 2003), p. 257, col. 2 for
the claim of the (American) pharmaceutical industry that higher prices are
needed in the United States to support research and development.
171 para: cure
I independently came up with the idea of a Fed of healthcare, but
certainly not first: Tom Daschle with Scott S. Greenberger and Jeanne M.
Lambrew, Critical: What We Can Do About the Health-Care Crisis (New
York: Thomas Dunne Books, 2008), pp. xiiixiv, 76 for Senator Daschle's
proposal of a Fed-like regulatory agency in 1992; Barlett and Steele, Crit-
ical Condition (2004), pp. 239–40 for a proposal of a Fed-like regulatory
agency; and Mehmet Oz, “America's Current System of Health Care

Endangers Patients and Providers,” Healthcare, ed. Grover, p. 75 for a
suggestive thought: “Our banks should not have better information
systems than our hospitals.”
173 epi: man
Joel Tyler Headley, The Great Riots of New York: 1712–1873 (New
York: Thunder's Mouth Press, 2004) p. 98 for the epigraph. Curiously,
Headley was upholding a former Republican war policy. He concludes his
argument, “Besides, there must be some rule that would exempt the men
that carry on the business of the country.” At least Headley presumed the
essential integrity enough for himself and the public to debate transparent,
dialectic ideas.
173 epi: income
Being a reprint of Agricultural Discontent in the Middle West 1900–
1939 (University of Wisconsin Press, 1951): Theodore Salaoutos and John
D. Hicks, Twentieth-Century Populism: Agricultural Discontent in the
Middle West 1900–1939, (Lincoln: University of Nebraska Press, c1965),
unnumbered p. vii of preface for the epigraph. Theodore Saloutos, The
American Farmer and the New Deal (Ames: Iowa State University Press,
1982), unnumbered p. 4 for the lifespan of Mr. Hicks. Roger Daniels,
foreword in Theodore Saloutos, American Farmer, p. ix for the death of
Mr. Saloutos in 1980. Who Was Who in America, Volume 9, 1985–1989
(Wilmette, Illinois: Marquis Who's Who, c1989), p. 313, col. 2 for
Theodore Saloutos, an educator and historian born 3 August 1910 and died
5 November 1980.
173 para: quarter
Steve Quinn; “Exxon Mobil and Royal Dutch Shell Report Record
Profits on High Oil, Natural Gas Prices;” Associated Press; Irving, Texas;
dated 27 October 2005, accessed 12 July 2006 at http://abcnews.go.com
/Business/wireStory?id=1255869, about ExxonMobil profits of $8.42
billion and $9.92 billion and the Royal Dutch Shell plc profit. Steve
Quinn, “Exxon Mobil Posts Record Profits for Any U.S. Company for
Fourth Quarter, Full Year,” Associated Press, Dallas, dated 30 January
2006, accessed 12 July 2006 at http://abcnews.go.com/Business
/wireStory?id=1557561, about the ExxonMobil profit of $10.71 billion in
the 4th quarter of 2005.
174 fig: 5.2
‘All Countries Spot Price FOB Weighted by Estimated Export Volume
(Dollars per Barrel)’ and ‘U.S. Regular Reformulated Retail Gasoline
Prices (Cents per Gallon),’ Energy Information Administration, U.S.
Department of Energy. Plots are for the U.S. dollar prices per gallon of oil
and gasoline, and in gray the fractional markup from oil to gasoline.
175 tab: 5.4
2005 Summary Annual Report, Exxon Mobil Corporation, pp. 18 and
26.
176 para: profits

Steve Quinn, “Exxon Mobil Posts Record Profits for Any U.S.
Company for Fourth Quarter, Full Year,” for the annual profit record of
ExxonMobil in 2005.
176 para: supply
Salvatore Lazzari; Resources, Science, and Industry Division, Energy
Tax Policy, CRS Issue Brief for Congress: Received through the CRS
Web, order code IB10054, updated 10 January 2006, Congressional
Research Service, The Library of Congress, the summary section about the
$11.5 billion and the names and and general nature of the three acts except
the short title of P. L. 109–58 (Energy Policy Act of 2005), and p. 9 about
the identity of the four extended subsidies. 118 Stat. 1166–93, for the
Working Families Tax Relief Act of 2004, Public Law 108–311, pp. 1181–
2, sections 313–4, 318–9 for the retroactively extended energy tax credits.
119 Stat. 594–1143, for the Energy Policy Act of 2005, Public Law 109–
58, pp. 703–4, 715 about reductions of royalties (I did not see an expan-
sion of drilling lands), and p. 1143 for the approval of the act into law
meaning the President signed it. “International Petroleum (Oil) Produc-
tion” Web page, identified by an email reply from the EIA dated 24 April
2008, accessed 14 May 2008 at http://www.eia.doe.gov/emeu/international
/oilproduction.html, for the portal page that led to the data series of U.S.
production of crude oil as accessed 14 May 2008, the final values to two
decimal places in thousands of barrels per day being: 11,200.28 in 2004,
10,880.82 in 2005, 10,883.13 in 2006, and 10,795.76 in 2007 where all
values after year 2004 are preliminary—that is U.S. crude production
apparently has not increased in quantity since 2004 in spite of the legisla-
tive production ‘incentives’ of the Energy Policy Act of 2005, Title III,
Subtitle E or of any other act as it stands in early 2008.
177 para: majority
Salvatore Lazzari, Energy Tax Policy, summary section, for a descrip-
tion of the nature of the current energy tax structure. American Jobs
Creation Act of 2004, CCH Tax Briefing Special Report, CCH Incorpo-
rated, updated 11 October 2004, p. 1 about the comment by Treasury
Secretary John Snow. Edmund L. Andrews and Michael Janofsky,
“Second Thoughts in Congress on Oil Tax Breaks”, New York Times, dated
27 April 2006, online version, about an estimate by the Congressional
Joint Committee on Taxation of $10 billion in tax breaks over the next five
years. “Big Oil Walking Away with $700 Million In Taxpayer Money
Every Year”, Senator John Kerry and Rep. Jim McDermott press release,
dated 15 May 2006, about $5 billion over 10 years and $1.4 billion more
than something.
177 para: attention
American Jobs Creation Act of 2004, CCH Tax Briefing Special Report,
p. 1 about the legal complexity requiring the immediate attention of busi-
nesses.
177 para: 2006

American Jobs Creation Act of 2004, CCH Tax Briefing Special Report,
p. 1 about the AJCA. Emily Schlect, “H.R. 4297, Tax Increase Prevention
and Reconciliation Act of 2005,” Congressional Budget Office Cost Esti-
mate, 2 June 2006 citing the Joint Committee on Taxation, U.S. Congress,
about subsequent acts S. 2020 and H.R. 4297, the latter becoming the Tax
Increase Prevention and Reconciliation Act of 2005 when signed by the
President (G. W. Bush) on 17 May 2006 and estimated to be reducing
federal revenues by $69.1 billion over the period 2006–2015.
177 para: breaks
Verified with the “Thomas” Web portal at http://thomas.loc.gov by using
the browse-by-vetoed-bill feature for the 109th Congress. No need to
check back to the 104th Congress. The White House news release of the
President's 21 March 2006 press conference confirms no vetoes to that
point.
178 para: retailers
Consolidation of refineries gleaned from information on the Energy
Information Administration website http://www.eia.doe.gov. As of 13 July
2006, a good starting page is http://www.eia.doe.gov/emeu/finance/usi&to
/downstream/index.html. Prepared Statement of Justine S. Hastings Before
The United States Senate Committee on the Judiciary Subcommittee on
Antitrust, Competition Policy and Consumer Rights, 7 April 2004, p. 4
about vertical integration and the merit of patronizing independents.
178 para: competitors
Prepared Statement of Justine S. Hastings, p. 4 for the quote but with
‘In fact,’ dropped from the beginning of the sentence and the word ‘in’
capitalized.
178 para: 2001
Statement of Jim Wells, Director Natural Resources and Environment,
U.S Government Accountability Office (GAO); “Energy Markets: Under-
standing Current Gasoline Prices and Potential Future Trends;” Testimony
Before the Committee on Government Reform, Subcommittee on Energy
and Resources; GAO; 9 May 2005; p. 1 about different costs of gasoline in
different countries largely due to different tax levels.
178 para: material, bombers
Discourse of Shelley Berkley (D-Nevada, 1st), “Saudi Arabia and the
Fight Against Terrorism Financing,” Hearing Before the Subcommittee on
the Middle East and Central Asia of the Committee on International Rela-
tions, House of Representatives 108th Congress, 2nd Session, Serial No.
108–109; U.S. Government Printing Office; 24 March 2004, pp. 5–6 for
the quote about Saudi ‘charity’.
179 para: *x*x*
Statement of Thomas J. Harrington, Deputy Assistant Director, Coun-
terterrorism Division, Federal Bureau of Investigation, “Saudi Arabia and
the Fight Against Terrorism Financing,” Hearing Before the Subcommittee
on the Middle East and Central Asia of the Committee on International
Relations, House of Representatives 108th Congress, 2nd Session, Serial

No. 108–109, U.S. Government Printing Office, 24 March 2004; p. 14 for
the quote about Riyadh bombings.
179 para: right
I am talking about the logical intersection of famous words from
Thomas Jefferson and Abraham Lincoln. When someone told Lincoln he
hoped God was on their Union side, Lincoln replied he hoped they were
on the side of God. Lincoln was one of the least Christian Presidents of
the United States. The famous words of Thomas Jefferson from the Decla-
ration of Independence are deistic not Christian (or Protestant), though
commonality and compatibility are in the eye of the beholder. The beliefs
in universal education, freedom of the press, and the separation of church
and state are of deistic origin or persuasion as much as any other religious
persuasion. David L. Holmes, The Faith of the Founding Fathers (New
York: Oxford University Press, 2006), p. 47 about the deistic language of
the Declaration of Independence, and p. 48 about the three aforesaid
‘radical’ beliefs that many deists held, but p. 6 about the advocation of
separation by Mennonites and Anabaptists, and p. 44 about the interflow of
Christianity and deism. Henry F. May, The Enlightenment in America
(New York: Oxford University Press, 1976), pp. xiv–xv about the same
interflow.
180 para: out
The Role of Market Speculation in Rising Oil and Gas Prices: A Need
to Put the COP Back on the Beat, a staff report, Permanent Subcommittee
on Investigations, U.S. Senate, 27 June 2006, pp. 22, 24 about speculation
in oil and gold, and p. 27 states: “Whether the current level of speculation
has provided needed liquidity, encouraged the building of inventories, or
created a speculative bubble in energy prices is impossible to determine
without additional data.”, and p. 23 about the risk of an oil glut. Monthly
Oil Market Report, OPEC, March 2008, p. 3 about oil and gold as a hedge
against inflation of the dollar and as commodity speculation driven by
disfavor of key global equity (stock) markets. Opening Statement for
Chairman Edward J. Markey, “Drilling for Answers: Oil Company Profits,
Runaway Prices and the Pursuit of Alternatives,” Select Committee on
Energy Independence and Global Warming, U.S. House of Representa-
tives, dated April 1, 2008, as accessed 15 April 2008 at
http://globalwarming.house.gov/tools/assets/files/0458.pdf, about Congres-
sional blame of (greedy) oil companies getting tax breaks and using record
profits for financial engineering as much as renewable engineering, but
who should rather ‘invest at least 10 percent of their profits in renewable
energy and biofuels to develop alternatives that will help consumers.’
“United States, Persian Gulf, Total OPEC, and World Total, Years 1970-
2006,” spreadsheet data labeled with ‘February 2008 International
Petroleum Monthly’ and ‘Posted: March 7, 2008’, Energy Information
Administration, U.S. Department of Energy, accessed through a Web page
with heading “International Petroleum (Oil) Production” on 10 April 2008
at http://www.eia.doe.gov/emeu/ipsr/t44.xls, for data under the column

headings ‘OPEC-12’ and ‘World’ used to calculate OPEC's annual produc-
tion percentage for the years 1970–2005.
181 fig: 5.3
“International Petroleum (Oil) Production” Web page, identified by an
email reply from the EIA dated 24 April 2008, accessed 14 May 2008 at
http://www.eia.doe.gov/emeu/international/oilproduction.html, for the portal
page that led to the data series of the yearly world production of crude oil
as accessed 14 May 2008. Using (p)=preliminary, the EIA data graphed in
figure 5.3 was, in 1,000 bbl: 59,557.56 in 1980; 56,049.87 in 1981;
53,453.60 in 1982; 53,256.59 in 1983; 54,498.94 in 1984; 53,966.19 in
1985; 56,198.61 in 1986; 56,626.75 in 1987; 58,691.86 in 1988; 59,791.25
in 1989; 60,491.68 in 1990; 60,187.63 in 1991; 60,115.09 in 1992;
60,167.93 in 1993; 61,102.57 in 1994; 62,384.88 in 1995; 63,751.73 in
1996; 65,743.64 in 1997; 66,965.55 in 1998; 65,922.39 in 1999; 68,494.63
in 2000; 68,101.03 in 2001; 67,167.93 in 2002; 69,448.44 in 2003;
72,512.48 in 2004; (p)73,806.86 in 2005; (p)73,538.77 in 2006; and
(p)73,274.08 in 2007.
182 fig: 5.4, 5.5
Key World Energy Statistics 2008, International Energy Agency, publi-
cation date unknown, as downloaded 23 September 2008 at
http://www.iea.org/textbase/nppdf/free/2008/key_stats_2008.pdf, p. 6 for
the “Total Primary Energy Supply” percentages of world energy consump-
tion by source in 1973 and 2006, and cf. pp. 36–7 for the energy consump-
tion figures used to derive those percentages.
183 para: over
The Role of Market Speculation in Rising Oil and Gas Prices, p. 22
about some oil traders asserting that certain hedge fund managers have
deliberately misrepresented a shortage in oil supply, at least in part by
advocating peak theories about oil. Jerome R. Corsi, “Foreboding oil
future called ‘grim reality’,” posted 27 March 2008, WorldNetDaily,
accessed 7 April 2008 at http://worldnetdaily.com/index.php
?fa=PAGE.view&pageId=60081, about Houston oil industry investment
banker Matt Simmons publicizing peak oil theory, and evidence and argu-
ment to the contrary including abundant abiotic liquid methane on Titan
(where the dinosaurs were not buried). Laurence W. Frederick, “Titan,”
Encyclopedia Americana: International Edition, 1999 ed., vol. 26, p. 785
about the atmosphere of Titan first observed in 1908 and the identification
of methane in Titan's atmosphere by spectroscopy in 1943. Imke de Pater,
Máté Ádámkovics, Seran Gibbard, Henry Roe, and Caitlin Griffith, “Flight
through Titans atmosphere,” in Proceedings of the International Confer-
ence Titan: From Discovery to Encounter, SP–1278, an extract of full
proceedings, European Space Agency, accessed 16 April 2008 from the
European Space Agency website at http://www.esa.int/esapub/sp/sp1278
/sp1278web_extract.pdf, p. 314 about Voyager I identifying nitrogen in
Titan's atmosphere and for the first time measuring the atmospheric pres-
sure on Titan's surface, found to be only 50 percent greater than that of
Earth's, supporting the idea that Titan is similar to what Earth was before
biogenically produced oxygen, and p. 315 citing Jonathan I. Lunine, David

J. Stevenson, and Yuk L. Yung, “Ethane Ocean on Titan,” Science, New
Series, Vol. 222, No. 4629 (16 December 1983), pp. 1229–30 about
Lunine, Stevenson, and Yung showing that the atmospheric methane could
not persist without replenishment and proposing the existence of sizable
bodies of liquid hydrocarbons supporting a hydrocarbon cycle analogous
to the water cycle (of evaporation and rain) on Earth (but with photolysis
converting methane, CH4, to ethane, C2H6). Jean-Pierre Lebreton and
Dennis L. Matson, “The Huygens mission to Titan: an overview,” in SP–
1278, p. 229 for the launch of Cassini-Huygens on 15 October 1997 from
Cape Canaveral Air Force Station, Florida, USA and the expected arrival
at Saturn of 1 July 2004. Zerah Lurie, “Cassini-Huygens: The history and
discoveries of the Saturn probe,” dated 23 May 2007, CBC News,
accessed 16 April 2008 at http://www.cbc.ca/news/background/space
/cassini-huygens.html, about the arrival of Cassini at Saturn on 1 July
2008.
Jerome Corsi, “Finally, an international confenrence on abiotic oil,”
posted 23 November 2005, WorldNetDaily.com, accessed 15 April 2008 at
http://www.wnd.com/news/article.asp?ARTICLE_ID=47551, about the first
international conference in association with a major (Western) professional
society of the oil industry devoted to the subject of abiotic oil occurred in
19–25 June 2005, not October, representing a change in Western thinking.
Found via the previous source, Lisa M. Pinsker, “Feuding Over the Origins
of Fossil Fuels,” Geotimes (June 2005), published by the American
Geological Institute (AGI), accessed 30 April 2008 at
http://www.geotimes.org/oct05/feature_abiogenicoil.html, about the first
time, June (2005), that proponents of abiotic oil theory had a major forum
in North America, the increasing consideration of abiotic theory at that
time, and the interest in the meeting from publications Financial Times
and Playboy. Jerome R. Corsi, “New data: Maybe oil isn't from dead
dinos,” posted 15 February 2008, WorldNetDaily, accessed 7 April 2008 at
http://worldnetdaily.com/index.php?fa=PAGE.view&pageId=56480, about
descent of the Huygens probe through Titan's atmosphere on 14 January
2005 and an analysis of the collected data reported 30 November 2005 that
the methane in Titan's atmosphere was not enriched with Carbon-12 as
opposed to Carbon-13 and was thus abiotic not biotic in origin, determined
to be abundant not later than 2008, and an analysis of data collected from
the Cassini probe reported in the Geophysical Research Letters dated 29
January 2008 that a tremendous amount of liquid hydrocarbon is on Titan
(where atmospheric pressure is somewhat higher and temperature is much
colder than on Earth). H. B. Niemann et al., “The abundances of
constituents of Titan's atmosphere from the GCMS instrument on the
Huygens probe,” Nature, Vol. 438, No. 7069 (8 December 2005), accessed
30 April 2008 via the Huygens GCMS portal at http://huygensgcms
.gsfc.nasa.gov, p. 782, col. 1 about a slight carbon-12 depletion regarding
its ratio with carbon-13, the necessity of a methane source, and the expec-
tation of a geologic source internal to Titan, plausibly a subcrustal ocean,
and p. 782, col. 2 about the expectation numerous heavy hydrocarbons and
nitriles are produced photochemically above 500km and the subsequent
precipitation. Jean-Pierre Lebreton et al., “An overview of the descent and
landing of the Huygens probe on Titan,” Nature, Vol. 438, No. 7069 (8
December 2005), accessed 30 April 2008 via the Huygens GCMS portal,
p. 758, col. 1 about the conversion in Titan's irradiated atmosphere of
methane into higher hydrocarbons and other organic compounds with
nitrogen that condense into aerosols giving Titan its orange haze and fall
as rain. “NASA Reports That Methane Drizzles on Saturn's Moon, Titan,”
an Ames news release, dated 27 July 2006, for the drizzle of methane rain.
Tony Phillips, “Parachuting to Titan” Web page, dated 30 December 2004,
accessed 30 April 2008 at http://science.nasa.gov/headlines/y2004
/30dec_titan.xml, about the similar appearance and viscosity of liquid
methane and liquid water—found via a thread on the Bad Astronomy and
Universe Today Forum website (www.hautforum.com). “Titan's Surface
Organics Surpass Oil Reserves on Earth,” news release, 13 February 2008,
Jet Propulsion Laboratory, a Web page accessed 15 April 2008 at
http://saturn.jpl.nasa.gov/news/press-release-details.cfm?newsID=814, for
the determination using Cassini data and reported in the Geophysical
Research Letters of 29 January 2008 that ‘Titan has hundreds of times
more liquid hydrocarbons than all the known oil and natural gas reserves
on Earth,’ and the assertion that ‘hydrocarbons rain from the sky,
collecting in vast deposits that form lakes and dunes.’ Research Report
109–28, Joint Economic Committee, U.S. Congress, dated January 2006,
about the (proven) low-cost oil reserves of the eleven members of OPEC
in 2005 and the (proven) oil reserves of non-OPEC nations.
184 para: you
International Energy Outlook 2007, Energy Information Administra-
tion, May 2007, p. 5, figure 8 for growth in world marketed energy
consumption from 400 quadrillion British thermal units (Btu) in 2000 to
447 quadrillion Btu in 2004 (works out to an average annual growth rate of
2.8% for the years 2001–2004) and a projected consumption of 511 in
2010 (works out to an average annual growth rate of 2.3% for the years
2005–2010). James Eaves and Stephen Eaves, “Is Ethanol the ‘Energy
Security’ Solution?”, an article that appeared on The Washington Post's
website 3 October 2007, as accessed 5 April 2008 at http://www.cato.org
/pub_display.php?pub_id=8730, for the assertion ‘solar panels capture far
more solar energy than corn.’ Ben Lieberman, The Ethanol Mandate
Should Not Be Expanded, Backgrounder, No. 2020, The Heritage Founda-
tion, dated 11 April 2007, a PDF file accessed 7 April 2008 via a link from
the Web page form at http://www.heritage.org/Research/energyand
environment/bg2020.cfm, p. 3 about pollution from gasoline and ethanol.
William Coyle, “The Future of Biofuels: A Global Perspective,” Amber
Waves, Vol. 5, No. 5 (November 2007), p. 28, col. 2 about both gasoline
and biofuels giving off carbon dioxide when burned, the biofuels theoreti-
cally being carbon neutral.
185 para: oil
D. Sean Shurtleff, “Energy Independence in Brazil: Lessons for the
United States,” Brief Analysis No. 614, National Center for Policy Anal-
ysis, 7 April 2008, p. 2, col. 2 about Brazil's sugarcane-based ethanol
yielding eight times the energy from the fossil fuel used to make it. Monte
Reel, “Brazil's Road to Energy Independence: Alternative-Fuel Strategy,

Rooted in Ethanol From Sugar Cane, Seen as Model,” online Washington
Post, dated 20 August 2006, accessed 5 April 2008, second Web page
about Brazilian sugar-based (necessarily sugarcane) ethanol yielding about
830 percent more fuel (energy) than the fossil fuel (energy) used to
produce it. Hosein Shapouri, James Duffield, Andrew McAloon, Michael
Wang, The 2001 Net Energy Balance of Corn-Ethanol, presented at the
Corn Utilization and Technology Conference, June 7-9, 2004, Indi-
anapolis, IN, note all authors listed were credited by the Web page
accessed 7 April 2008 at http://www.usda.gov/oce/reports/energy and
linking to the electronic source but the source itself only credits the first
author listed, the electronic creation and modification dates in the PDF file
were each 14 February 2006, p. 1 about the energy ratio of 1.67 and criti-
cism of USDA determination of the energy balance of corn ethanol.
Found via Eaves and Eaves, “Is Ethanol?” was Hosein Shapouri, James A.
Duffield, and Michael Wang, The Energy Balance of Corn Ethanol: An
Update, Agricultural Economic Report Number 813, U.S. Department of
Agriculture, July 2002, p. 1, col. 2 about estimates of a negative energy
value for corn ethanol, pp. i, 11, 12 about the determination of corn
ethanol's energy ratio of 1.34, and p. 1, col. 1 about U.S. Government
incentives and U.S. Government sponsored research. Note that Agricul-
tural Economic Report Number 814 is nearly identical to Number 813 with
no substantive differences that I could determine, as they were down-
loaded 7 April 2008 in the form of PDF files: both are dated July 2002 on
page i and Number 813 has an additional blank page at the end. The
creation and modification dates within the PDF files were 29 August 2002
twice for Number 814, and 9 August 2002 and 24 September 2004 (yes,
two years later) for Number 813, respectively.
Susan S. Lang, “Cornell ecologist's study finds that producing ethanol
and biodiesel from corn and other crops is not worth the energy,” Cornell
University News Service, dated 5 July 2005, accessed 9 April 2008 at
http://www.news.cornell.edu/stories/july05/ethanol.toocostly.ssl.html, about
a report by David Pimentel and Tad W. Patzek published in Natural
Resources Research, Vol. 14, No. 1 (no date given), pp. 65–76 about
finding corn ethanol requires 29 percent more fossil energy than the energy
content of the resulting ethanol. William Coyle, “The Future of Biofuels,”
p. 27, col. 2 and p. 29, col. 2 about cellulosic ethanol as the hopeful future
of ethanol and cellulose as the world's most widely available biological
material, p. 28, vide the table, about the feedstocks used by various coun-
tries for ethanol and biodiesel, p. 27, col. 1 for the sentence: “The U.S.
tariff on ethanol is currently about 25 percent when the 2.5-percent tariff is
combined with the $.54 per gallon duty.” and for ethanol having two-thirds
the energy content of gasoline and biodiesel having 90 percent the energy
content of diesel, but whether the comparisons are by volume or weight is
unspecified, and p. 26, col. 3 for the $.51 per gallon refund for blenders of
ethanol and the use of import restrictions to promote the emerging
(domestic) biofuel industry. The refund is the Volumetric Ethanol Excise
Tax Credit (VEETC) that I will describe infra in the regular text. Annual
Energy Outlook 2007: With Projections to 2030, Energy Information
Administration, February 2007 (February 2006 appears to be a typo), p.
59, col. 1 and table 12—found via Lieberman, The Ethanol Mandate, p. 2,
fnote 5—about a gallon of ethanol containing two-thirds the energy of a
gallon of conventional gasoline and for volumetric data about the energy
content of gasoline, ethanol, diesel, and biodiesel that defines ethanol to
have 66% or 67% of the energy content of gasoline by volume and
biodiesel to have 92% or 93% of the energy content of diesel by volume—
the value 0.95 in table 12 should perhaps be 1.03.
185 para: consumption
Lieberman, The Ethanol Mandate, pp. 2–3 about the petroleum fuel
used to power the tractors, harvesters, truck, barges, and trains used to
produce and ship corn.
186 para: 2007
106 Stat. 2776–3133, for the Energy Policy Act of 1992, Public Law
102–486, pp. 2888–9 for the directive to the Secretary to establish of
program to promote the replacement of petroleum motor fuels with
‘domestic replacement fuels’ and on an energy equivalent basis achieve
targets in the American consumption of replacement fuels, of which at
least half shall be domestic, of at least 10% replacement by the year 2000
and at least 30% by the year 2010, p. 2782 for the term ‘Secretary’ defined
as the Secretary of Energy, and pp. 2889–90 for the required annual reports
to Congress on the programs progress. Energy Policy Act of 1992,
Limited Progress in Acquiring Alternative Fuel Vehicles and Reaching
Fuel Goals, GAO/RCED-00-59, dated February 2000, GAO, p. 4 about the
conclusion conveyed to Congress by a 1999 draft report required by the
Energy Policy Act of 1992 that the 2000 target would not be met, and the
request by members of Congress for an analysis of the situation by GAO
with an emphasis on impediments, pp. 25–6, should you care, for the 16
members of Congress who made the request, pp. 4–5 for the economic
disadvantages not overcome and the use of gasoline with mandated alter-
native fuel vehicles, p. 21 for the concurrence between DOE and GAO that
the 2010 target would not be met under current economic conditions, and
p. 20 for the two critical economic phenomena able to push American
consumers to widespread acceptance of alternative fuels, the second of
which undoubtedly must include incentives for using alternative fuels in
the alternative fuel vehicles given the caveat noted by the report on page 5.
119 Stat. 594–1143, for the Energy Policy Act of 2005, Public Law 109–
58, p. 715 for the quoted Congressional finding about unproduced oil, p.
1064 for the purpose of the nested SAFE Act, p. 1067 for the Renewable
Fuel Program codified as 42 U.S.C. 7545(o), and p. 1071 for the Credit
Program. 92 Stat. 3206–3288, for the National Energy Conservation
Policy Act, Public Law 95–619, p. 3238 for the quote but in the original
ending with a semicolon not a period. Biofuels: DOE Lacks a Strategic
Approach to Coordinating Increasing Production with Infrastructure
Development and Vehicle Needs, GAO-07-713, dated June 2007, GAO, p.
2 about the Renewable Fuels Standard (RFS) mandating that transportation
fuel blenders add a required amount of renewable fuels like ethanol and
biodiesel (ethanol in gasoline offers the best opportunity to reach the
required volume), the sidebar on the unnumbered second page about the
request to identify impediments, p. 1 for, should you care, the three

requesting Senators, and pp. 39–41 for the GAO determination that the
DOE program is basically floundering, in so many safely bureaucratic
words. Annual Energy Outlook 2007, p. 57 for the ability of all cars and
light trucks built for the U.S. market since the late 1970 to run on up to 10
percent ethanol by volume.
In 2000 1.7 billion of the 130.2 billion gallons of finished motor fuel
consumed in the United States was ethanol. In 2007 6.9 billion of 142.3
billion gallons was ethanol. “Frequently Asked Questions – Renewable &
Alternative Energy Sources” Web page accessed 6 December 2008 at
http://tonto.eia.doe.gov/ask/Renewables_FAQs.asp#ethanol_affect_fuel_ec
onomy, vide the question: “How much ethanol is in gasoline and how does
it affect fuel economy?”, for 6.9 billion gallons of ethanol within the 142.4
billion gallons of gasoline consumed in the United States in 2007, and for
links leading to the next two sources from the U.S. Energy Information
Administration (EIA) and downloaded 6 December 2008: (1) file
MGFUPUS1a.xls from a Web page linked to “Product Supplied: Finished
Motor Gasoline” Web page at http://tonto.eia.doe.gov/dnav/pet/pet_cons
_psup_a_EPM0F_VPP_mbbl_a.htm, for the U.S. Finished Motor Gasoline
Product Supplied for each of the years 1945–2007 given in thousands of
barrels and, (2) table 10.3 of the Monthly Energy Review (November 2008)
at http://www.eia.doe.gov/emeu/mer/pdf/pages/sec10_7.pdf, for yearly and
monthly fuel ethanol consumption in the United States. Per my communi-
cations with the EIA, we may treat the yearly supply of gasoline given by
the spreadsheet file (with the .xls extension) as equal to the yearly
consumption, and we may assume nearly all of the ethanol of table 10.3 of
the Monthly Energy Review (MER) is added to the U.S. gasoline supply,
which basically means to consider all of it as I have here. I also down-
loaded the entire MER of November 2008 in PDF format on 6 December
2008. Appendix B of the MER tells us a petroleum barrel (bbl) is exactly
equal to 42 U.S. gallons (gal). I like to use kbbl to mean 1000 barrels, but
the MER of November 2008 uses Mbbl instead, which is too easily
confused with a million barrels. The percentage calculation for year 2000
is 39,367 kbbl / 3,100,774 kbbl = 1.27% and for year 2007 is 163,945 /
3,389,269 = 4.84%. Similar values for the total gasoline supply, including
ethanol, may be calculated from the MER by adding together values from
tables 3.7a, 3.7b, and 3.7c: e.g. for year 2000, 23 + 79 + 8370 = 8472
kbbl/day on average (don't get fooled by the Mbbl), then multiply by the
number of days in the year, which was 366 in leap year 2000, to get
3,100,752 kbbl. Incidentally, using the spreadsheet file's data results in
142.3 billion gallons for year 2007, whereas the MER calculation comes to
142.4 billion. The slight difference may be explained by the fact that the
EIA revises its data. Be aware that the table numbering between the
Annual Energy Review and the MER's of the same year is similar but not
necessarily the same.
Environmental Protection Agency (EPA) reports regarding the ethanol
content of gasoline and to have been made per Public Law 109–58 at 119
Stat. 1075–6 (also codified at 42 USC 7545 notes) seem nonexistent in late
2008 based on the results of my inquiries with the EPA and EIA.
187 fig: 5.6, 5.7

Annual Energy Review 2007, Report No. DOE/EIA-0384(2007), Energy
Information Administration, U.S. Department of Energy, 23 June 2008, as
downloaded 13 September 2008 via a link from the Annual Energy
Review (2007) portal Web page at http://www.eia.doe.gov/emeu/aer/, table
1.3 of page 9 for U.S. energy consumption by source. Note that the Coal
Coke Net Imports value was added to the Coal value for each year indi-
cated.
188 para: revenue,
189 para: Switzerland
92 Stat. 3174–3205, for the Energy Tax Act of 1978, Public Law 95–
618, p. 3205 for the act's approval into law on 9 November 1978, indica-
tive of signature by Jimmy Carter, and p. 3185 for the motor fuels excise
taxes exemption of gasoline with at least 10 percent alcohol (ethanol)
effective after 31 December 1978 and before 1 October 1984. To confirm
the lack of specification regarding volume, one would ideally look at the
U.S. Code, specifically 26 U.S.C. 4081, and Title 26 of the Code of
Federal Regulations (CFR), turns out to be 26 CFR 48.4081-6(b)(2)(C)(ii)
which is on page 143, col. 2 of—not exactly sure how the pagination
works going by the CFR posted online without browsing functionality by
the Government Printing Office (GPO)—CFR (using 1997 edition), Title
26, ch. 1, vol. 15, part 48, subpart H. On 18 June 2008 the latest versions I
found on the Web were, from the GPO website, the 1994 edition of 26
U.S.C. 4081 and the 1997 revision of 26 CFR Part 48. 94 (Part 1) Stat.
229–308, for the Crude Oil Windfall Profit Tax Act, Public Law 96–223, p.
308 for the approval, indicative of signature by Jimmy Carter, and p. 273,
the new text of Sec. 44E(a)(1) and (2) that lists the two new income tax
credits. Tax Incentives for Petroleum and Ethanol Fuels, GAO/RCED-00-
301R, dated 25 September 2000, U.S. General Accounting Office (GAO),
p. 16 about the motor fuel excise tax exemption enacted with the Energy
Tax Act of 1978, p. 18 about the two income tax credits enacted with the
Crude Oil Windfall Profit Tax Act of 1980, p. 17, table 8 for JCT- and
Treasury-based estimates of the cost of exemptions from the motor fuel
excise tax of $7,523 million and $11,183 million respectively using year
2000 dollars, p. 19, table 9 for JCT- and Treasury-based estimates of the
cost of income tax credits of $478 million and $196 million respectively
using year 2000 dollars, and pp. 3, 4 about the incompatibility of the esti-
mates to addition. Biofuels, GAO-07-713, p. 43 for the reference to the
GSI estimate of $1.80 for each displaced gallon of gasoline, pp. 8, 41 for
the VEETC as the the largest federal biofuel tax expenditure and the esti-
mated VEETC cost of $2.7 billion in 2006, apparently for calendar year
2006 because fiscal years are explicitly used elsewhere in the report, and
pp. 41–3 for a wordy discourse that basically says the federal government
has no idea about the economic performance of federal biofuel subsidies
financed by forgone tax revenues. Doug Koplow, Biofuels - At What
Cost?: Government support for ethanol and biodiesel in the United States,
Global Subsidies Initiative (GSI), October 2006, accessed as a PDF file 16
April 2008 from http://www.globalsubsidies.org, p. 11 w/ table 3.1 and p.
24 for the start of federal U.S. ethanol subsidy by excise tax exemption
(legislatively) in 1978 (but effectively in 1979), p. 11 about the so-called

GAO estimate of $8.6 to $12.9 billion in year 2006 dollars for the excise
tax exemption, p. 48 about ill-defined economic subsidy and support of
biofuel production in the United States, pp. 19–20, 44 for U.S. tariffs and
mandates, and pp. 23–6 for tax credits. Note: In an email reply dated 12
May 2008, GAO could only surmise the identity of the source of the GAO
estimate indicated by page 11 of the aforesaid GSI report to be
GAO/RCED-00-301R, tables 8 and 9 as cited supra. 118 Stat. 1418–1660,
for the American Jobs Creation Act of 2004, Public Law 108–357, p. 1459
for the new VEETC allowed against the motor fuels excise tax of 26
U.S.C. 4081, p. 1461 for the removal of the motor fuels excise tax exemp-
tion of 26 U.S.C. 4081(c) and (k), and p. 1463 for the associated effective
date of after 31 December 2004. Lieberman, The Ethanol Mandate, p. 1
about the mandated addition of ethanol to the U.S. gasoline supply first in
2006 per the Energy Policy Act of 2005. Ronald Steenblik, Biofuels — At
What Cost?: Government support for ethanol and biodiesel in selected
OECD countries, GSI, September 2007, accessed as a PDF file 16 April
2008 from http://www.globalsubsidies.org, p. 9 about the United States
surpassing Brazil in 2006 as the leading producer of ethanol, p. 37, table
4.1 for estimates in U.S. dollars of governmental support in 2006: United
States, $5.9 to $7.2 billion; European Union, $4.2 billion; Canada, $0.11
billion; Australia, $0.05 billion; and Switzerland, $0.01 billion. Doug
Koplow, Biofuels - At What Cost?: Government support for ethanol and
biodiesel in the United States: 2007 Update, Global Subsidies Initiative
(GSI), October 2007, p. 28 for an estimate of U.S support at all levels of
government in 2006 of from $6.32 ($5.8 + $0.52) to $ 7.64 ($7.0 + $0.64)
billion given as between $5.8 and $7.0 billions for ethanol and between
$520 and $640 millions for biodiesel—still around $6.5 billion.
189 para: 2008, time,
190 para: 2007, production, volatility
WFP's Operational Requirements, Shortfalls and Priorities for 2008,
World Food Programme (WFP), February 2008, p. 5 about WFP opera-
tions in 2008, and p. 10 for the WFP quote. Doug Koplow, Biofuels * * *
in the United States, pp. 38–9 for corn farming subsidies in amounting to
several billion U.S. dollars, and p. 51, table 5.1 for ethanol subsidies
amounting to several billion U.S. dollars exclusive of corn farming.
“World Food Programme: Fighting Global Hunger” brochure, a press pack
in English, accessed 15 April 2008 at http://documents.wfp.org/stellent
/groups/public/documents/newsroom/wfp149480.pdf, about complete
funding by voluntary donations and in 2006 by 97 governments. Foreign
Assistance: U.S. Agencies Face Challenges to Improving the Efficiency
and Effectiveness of Food Aid, a statement of Thomas Melito, Director
International Affairs and Trade, testimony before the U.S. Senate
Committee on Agriculture, Nutrition, and Forestry, GAO-07-616T, March
2007, U.S. Government Accountability Office, p. 4 about the United States
(Government) as the largest provider of food aid, but exclusively with in-
kind food aid as opposed to cash donations, with 78% of U.S. food aid
going to Africa in fiscal year 2006. Annual Report 2006, public version,
World Food Programme, p. 65, table of Annex 4, about confirmed contri-
butions to the WFP in 2006 from USA, distinct from private donors,
amounting to $1,122,307 thousand of the total $2,704,956 thousand
(presumably U.S. dollars). Food Outlook: Global Market Analysis, Food
and Agriculture Organization (FAO), June 2007, p. 8, col. 2 about the
United States as the world's largest maize exporter, p. 1 for the FAO quote,
and p. 36 about emerging markets with agricultural exchanges and deriva-
tive markets and driving a boom of agricultural exchanges and derivative
markets around the globe. Food Outlook: Global Market Analysis, FAO,
November 2007, p. 48, col. 1 about speculation in agricultural commodi-
ties facilitated by emerging economies and deemed more likely to raise
price volatility rather than price levels.
191 para: production
Julian Borger, “Feed the world? We are fighting a losing battle, UN
admits,” dated 26 February 2008, an update or repeat of an article in the
Guardian of 26 February 2008 within the International section on page 18,
Guardian Limited, accessed 24 April at http://www.guardian.co.uk
/environment/2008/feb/26/food.unitednations, about the fall over the three
decades to year 2005 of world food prices by about three-quarters (75%)
and then rising in the remaining period before publication by 75% (relative
to a lower value circa 2005), much of that rise in the last year, according
the Economist food prices index that is apparently adjusted for inflation,
and about WFP officials blaming the unrest over food shortages on a
‘perfect storm’ of increasingly prosperous populations in India and China,
biofuels production, and climate change. Gerrit Buntrock, “Cheap no
more: Rising incomes in Asia and ethanol subsidies in America have put
an end to a long era of falling food prices,” dated 6 December 2007, as
taken from the print edition of The Economist, accessed 30 April 2008 at
http://www.economist.com/displaystory.cfm?story_id=10250420, about the
Economist's food-price index at the time of publication being at its highest
level since its inception in 1845 and having risen by one-third over the past
year (basically 2007), but whether it represents nominal or real price levels
was not specified, and about the IMF's index of food prices being slightly
lower in 2005 than in 1974 meaning that food prices fell during those 30
years by three-quarters (judging by chart 2 the record high for the index
was in 1974 followed by a general decline ending in year 1999, real prices
remained steady for the years 1999–2003, the contemporary upward trend
in real prices began in 2002 but not sharply until 2006, and through 2008
the sharply higher prices had yet to compare with real prices reached in the
early 1970s). “FACTBOX-Clashes over food prices trouble political
leaders,” dated 1 April 2008, Reuters, accessed 24 April 2008 at
http://www.reuters.com/article/latestCrisis/idUSL26932235, about the taxi
drivers' strike over high fuel prices in the commercial capital Douala, the
Cameroon Government putting the death toll at 24, and human rights
activists reckoning over 100 dead and mostly by police gunfire. Tansa
Musa, “Protests paralyse Cameroon capital and port city,” dated 27
February 2008, Reuters, accessed 24 April 2008 at http://uk.reuters.com
/article/homepageCrisis/idUKL27420545._CH_.242020080227, about the
worst Cameroon unrest in 15 years breaking out over the weekend (23–24
February 2008) in Douala with rioting and looting and arising from a taxi
drivers' strike (apparently also in Douala), the spread of the unrest to the
capital Yaounde after sweeping through western towns ‘in the last four
days’ (24–27 February?), and the violent upheaval motivated by anger
over high fuel and food prices and ‘by a bid of President Paul Biya to
extend his 25-year rule.’ “Cameroon: Not quite back to normal,” dated 6
March 2008, IRIN, United Nations Office for the Coordination of Humani-
tarian Affairs, accessed 24 April 2008 at http://www.irinnews.org
/report.aspx?ReportID=77162, about riots started in Douala in western
Cameroon on 25 February (2008) and quickly spread to the capital of
Yaoundé.
“Egypt moves to appease angry workers: Two days of deadly riots mark
growing economic unrest,” dated 8 April 2008, an Associated Press article,
MSNBC, accessed 24 April 2008 at http://www.msnbc.msn.com/id
/24017142/, about the regime of President Hosni Mubarek prohibiting
nearly 10,000 members of the Muslim Brotherhood, if not all members,
from political candidacy and arresting hundreds of members in preparation
for countrywide elections held Tuesday (8 April 2008), a wave of unrest
not seen in Egypt since the 1977 bread riots occurring Sunday (6 April
2008) and Monday (7 April) in Mahalla al-Kobra, and the body of a
teenager not yet released by a hospital widely interpreted as an attempt to
avoid an explosive funeral. Maggie Michael, “Egypt Grants Bonuses
After Deadly Food Riots,” dated 8 April 2008, an Associated Press article,
Huffington Post, accessed 24 April 2008 at http://www.huffingtonpost.com
/2008/04/08/egypt-grants-bonuses-afte_n_95685.html, about nearly 10,000
members of the Muslim Brotherhood not allowed to run for office,
hundreds of such members arrested, riots in Mahalla al-Kobra over high
food prices and low wages marked by one death and protesters tearing
down a billboard of President Hosni Mubarak, described as the worst
unrest in Egypt since the 1977 bread riots, Haitian unrest spreading from
the countryside to the capital (Port-au-Prince) on Monday (7 April 2008)
and Tuesday (8 April) as a flood of protesters angry over high food prices
who filled the streets and closed businesses and schools, and top UN offi-
cial and chief of U.N. humanitarian operations John Holmes blaming food
shortages and unrest on global inflation compounding the problem of
climate change in what he said others have labeled the perfect storm.
“Prices causing food crisis in Egypt,” dated 25 March 2008, United Press
International, accessed 24 April 2008 at http://www.upi.com/NewsTrack
/Top_News/2008/03/25/prices_causing_food_crisis_in_egypt/3421/, about
subsidized bread called ‘balady’ selling for less than 1 US cent per loaf, a
booming black market of subsidized wheat and bread, and the order of
Egyptian President Hosni Mubarak to have the army increase bread
productions to address bread shortage and the associated violence.
“Egypt: Can bread subsidies continue in their present form?”, dated 10
April 2008, IRIN, United Nations Office for the Coordination of Humani-
/report.aspx?ReportId=77691, about a 20-loaf maximum applied to the
purchase of ‘baladi’ at most Cairo bakeries, the children sent by parents to
wait in baladi queues, a thriving black market of subsidized wheat and
bread, at least 11 people dying in baladi queues from exhaustion and 2
from stabbings since early February according to security sources, violent
protests against police on 6 April (2008) in Al-Mahalla Al-Kobra over

bread prices, and according to a newspaper, the resulting death of a 15-
year-old boy. “Food protests end in Haiti,” dated 10 April 2008,
CNN.com, accessed 24 April 2008 at http://edition.cnn.com/2008/WORLD
/americas/04/10/haiti.food.protests/index.html#cnnSTCText, about food
protests in Haiti ending Thursday (10 April 2008) and having begun in Les
Cayes late last week as demonstrations over the high cost of living, and the
three bodies found in Belair of men shot dead for reasons unknown.
Joseph Guyler Delva, “Haitians riot over prices, four killed,” dated 4 April
2008, Reuters, accessed 24 April 2008 at accessed 24 April 2008 at
http://www.reuters.com/articlePrint?articleId=USN04395455._CH_.2400,
about four people killed in southern Haiti when demonstrators protesting
the high cost of living clashed with UN peacekeepers, (the start of the
riots) in Les Cayes on Thursday (3 April 2008) with burning shops,
shooting at UN peacekeepers, and the looting of (food?) containers at a
UN compound despite warning shots. “World Bank Calls for Action:
Chaos Spreads as Food Prices Skyrocket,” dated 10 April 2008, Spiegel
Online: International, accessed 24 April 2008 at http://www.spiegel.de
/international/world/0,1518,546551,00.html, about thousands parading
through the streets, perhaps that many in Port-au-Prince alone, five dead in
the Haitian violence since last Thursday (3 April 2008), and widespread
looting.
Julian Borger, Andrew Clark, and Rory Carroll, “Shops ration sales of
rice as US buyers panic,” dated 24 April 2008, Guardian Limited, accessed
24 April 2008 at http://www.guardian.co.uk/environment/2008/apr/24/food
.usa, about six dead from the Haiti looting and riots, and the first rationing
of rice by big U.S retailers yesterday (23 April 2008), specifically Costco
and Walmart. Frances C. Moor, a compilation of food-shortage unrest
around the world, in Lester R. Brown, World Facing Huge New Chal-
lenges on Food Front: Business-as-Usual Not a Viable Option, Eco-
Economy Update, 16 April 2008, Earth Policy Institute, accessed 23 April
2008, the compilation and the main text presented by separate Web pages,
the former at http://www.earthpolicy.org/Updates/2008/Update72_data.htm
#table1, for a list of incidents marked by food-related violence in the coun-
tries of Bangladesh, Cameroon, China that experienced a deadly shopping
stampede, Côte d'Ivoire, Egypt, Haiti, Mauritania, and Yemen occuring
over the period November 2007 to April 2008, though one listed incident
is outside that range, protests over bread prices in Uzbekistan during
September 2007 of unspecified physicalness—compiled using two speci-
fied and other unspecified sources, with the specified sources specified as
and leading to the first and third sources of this paragraph, except that the
Reuters article “FACTBOX-Clashes” given supra was specified with a
date of 2 April 2008 and a title without ‘FACTBOX-’. “Middle East:
Climate change could threaten food security - FAO report,” dated 11
March 2008, IRIN, United Nations Office for the Coordination of Humani-
/Report.aspx?ReportId=77215, about Bahrain Prime Minister Shaikh
Khalifa Bin Salman al-Khalifa on 3 March (2008) warning of spiralling
world inflation and called attention to ensuring food security in the Arab
world, and executive director of the UN World Food Programme (WFP)
Josette Sheeran on 6 March (2008) warning that high food prices and
resulting inflation would continue at least two more years, identifying
climate change as one of the factors, and defining the ‘new face of hunger’
as ‘people who have money but have been priced out of being able to buy
food’—the implications of her ponderous ‘new face’ statement being too
loaded, broken, and nebulous to effectively criticize if handicapped by the
intellect of the dull masses.
191 para: continents
“Brazil announces new measures to fight Amazon deforestation,” dated
24 January 2008, International Herald Tribune, Americas version online
(as in the Americas), an Associated Press article, accessed 5 April 2008 at
http://www.iht.com/articles/ap/2008/01/24/america/LA-GEN-Brazil-Amazon-
Deforestation.php, about the high prices of corn (cattle feed) blamed on
U.S. corn ethanol, soy used as an animal feed, and beef (more costly with
higher feed prices) promoting destruction of the Amazon rain forest by
cattlemen, soy farmers, and corn farmers. Marco Sibaja, “Brazil to Crack
Down on Deforestation,” dated 24 January 2008, WTOP News, an Associ-
ated Press article, accessed 5 April 2008 at http://www.wtopnews.com/
?nid=220&sid=1332257, is nearly identical to the previous source with the
two notable exceptions that the author is named here and the previous
source has four critical paragraphs that this source mostly has missing with
the effect of omitting a causation of Brazil's booming beef industry that
encroaches into the Amazon identified as President Bush's promotion of
U.S. corn ethanol. OPEC Quarterly Environmental Newsletter, Fourth
quarter 2007, p. 5, col. 1 about European Union use of biodiesel made
from palm oil promoting the destruction of forest in Indonesia. William
Coyle, “The Future of Biofuels,” p. 29, col. 1 about the concern of biofuel
farming at the expense of rainforest areas and other wildlife habitats in
Indonesia, Malaysia, and Brazil. OPEC Quarterly Environmental
Newsletter, Third quarter 2007, pp. 4–5 about the threat of biofuel farming
to rainforests in Africa, Asia, and South America, and the threat of palm oil
farming to Indonesia's dense tropical swamps.
192 para: 2007
Country Analysis Briefs: Brazil, last updated September 2007, Energy
Information Administration (EIA), accessed 19 April 2008 at
http://www.eia.doe.gov/emeu/cabs/Brazil/pdf.pdf, p. 2 for EIA expectation
that Brazil will be a net oil exporter by the end of 2007.
192 fig: 5.8
“International Petroleum (Oil) Production” Web page, identified by an
email reply from the EIA dated 24 April 2008, accessed 14 May 2008 at
http://www.eia.doe.gov/emeu/international/oilproduction.html, for the portal
page that led to the data series of Brazil's yearly production of crude oil,
natural gas plant liquids, and other liquids as accessed 14 May 2008.
“Brazil Energy Profile: 10 Year Energy Data Series” Web page, accessed
14 May 2008 at http://tonto.eia.doe.gov/country/country_time_series.cfm
?fips=BR, for the “Download Full Series: 1980-2007 (xls)” link that led to
the data series of Brazil's yearly net exports (a negative value indicate a net
import) as accessed 14 May 2008.
However, a caveat is that the yearly net export values of Brazil given by
the aforementioned source were calculated as the total of all kinds of oil
production minus petroleum consumption alone, which makes the values
approximate and tending to be too high. I was told by email from EIA
dated 30 January 2009 that EIA does not have data for total net exports of
all types of oil for non-OECD countries, like Brazil.
As of March 2008, every source of information about Brazil's biofuels I
had read was about ethanol and not about biodiesel, apparently a negli-
gible consideration. I was told by email from EIA dated 19 May 2008 that
Brazil produced no biodiesel until March 2005, the ‘other liquids’ for the
years 1980–2004 is entirely ethanol, and for the years 2005–2007 it was
ethanol and biodiesel, the biodiesel being 10 barrels per day (bbl/d), 1,190
bbl/d, and 6,920 bbl/d respectively. I have subtracted the biodiesel values
from other liquids to get ethanol for the figure.
Country Analysis Briefs: Brazil, p. 2 shows a graph of Brazil's overall
oil consumption and overall oil production intersecting just before the tick
mark for 2007 to support the EIA expectation that Brazil will be a net oil
exporter by the end of 2007 and in the text states that overall Brazilian oil
production in 2006 was 2.2 million bbl/d of which 77 percent was crude
oil and that overall Brazilian oil consumption in 2006 was on average 2.3
million bbl/d—compare to Brazilian petroleum consumption of 2,216.8
thousand bbl/d (kbbl/d) used to figure Brazil's net oil export of -51.2
kbbl/d in 2006 (negative means net import)—and p. 4 for Brazil producing
308,000 bbl/d of ethanol in 2006—close to the preliminary 307,622 bbl/d
of ‘other liquids’ produced by Brazil in 2006 minus 1,190 bbl/d in
biodiesel figuring to 306,432 bbl/d of ethanol as used in the figure—and
also for the projected 329,000 bbl/d in 2007, not as close to 397,481 minus
6,920 equals 390,561 bbl/d of ethanol used in the figure.
Annual Energy Review 2007, p. 395 w/ the definition of petroleum and
p. 399 w/ the definition of unfinished oils helps us understand petroleum
consumption by defining petroleum as a class of liquid hydrocarbon
mixtures that may have nonhydrocarbon compounds and includes crude
oil, lease condensate, liquids made from refinement of crude oil, and
natural gas plant liquids. Thus, petroleum consumption is pretty much
overall oil consumption except biofuel consumption.
The data graphed by the figure to the decimal places of each datum's
formatting, not necessarily of the datum itself due to the nature of spread-
sheet applications, using (p) to indicate preliminary data, is:
(in kbbl/d) 1980 1981 1982 1983
Crude Oil 182.00 213.00 260.00 339.50
Other Liq. 44.50 51.06 68.19 96.51
N. G. Liq. 6.00 7.00 8.00 11.00
Net Exp. -903.50 -801.90 -712.80 -520.50
1984 1985 1986 1987 1988

475.00 564.00 572.00 566.00 554.00
111.37 140.35 121.17 149.78 139.48
15.00 17.00 20.00 25.00 25.00
-418.60 -345.00 -497.70 -495.60 -549.30
1989 1990 1991 1992 1993
596.00 630.50 630.00 625.92 643.00
143.34 139.80 156.12 142.42 138.31
22.00 20.00 22.00 25.00 25.00
-527.60 -645.40 -645.80 -697.10 -740.30
1994 1995 1996 1997 1998
671.43 695.43 795.00 841.42 968.50
151.88 154.70 171.09 197.03 225.00
35.00 40.00 35.00 30.00 35.00
-780.50 -863.60 -869.60 -928.50 -831.90
1999 2000 2001 2002 2003
1,131.80 1,269.00 1,295.15 1,455.19 1,496.11
226.00 192.65 197.59 216.94 249.36
33.00 36.00 41.00 45.00 55.00
-700.40 -623.40 -632.60 -373.70 -208.80
2004 2005 2006 2007
1,477.37 (p)1,633.57 (p)1,722.73 (p)1,748.00
252.05 (p)276.51 (p)307.62 (p)397.48
61.54 (p)79.30 (p)86.39 (p)84.67
-283.00 -127.80 -51.20 no datum
193 epi: returns, expenses
Who Pays for Tort Liability Claims?: An Economic Analysis of the U.S.
Tort Liability System, Council of Economic Advisers, Executive Office of
the President, April 2002, pp. 1–2 citing statistics from U.S. Tort Costs:
2000, Trends and Findings on the Costs of the U.S. Tort System, February
2002, Tillinghast-Towers Perrin, for the epigraph.
194 para: capita
U.S. Tort Costs: 2003 Update, Trends and Findings on the Costs of the
U.S. Tort System, externally dated December 2003 (see the 2004 update, p.
4), Tillinghast-Towers Perrin, appendix 2 on p. 3 (in appendices) for data
to calculate 71% of total tort costs in 2002, and the pie chart on p. 17 for
data to calculate 54%. U.S. Tort Costs and Cross-Border Perspectives:
2005 Update, externally dated March 2006 (see the 2006 update, p. 2),
Tillinghast-Towers Perrin, table 3 of p. 6 and p. 12 w/ table 8 about the
international data of 2000–2003. 2007 Update on U.S. Tort Cost Trends,

Tillinghast-Towers Perrin, externally dated 4 December 2007, Tillinghast-
Towers Perrin, p. 5, table 3 for U.S. tort costs in 2004 and 2006.
195 para: employment
2003 Tort Update, p. 1 about tort costs equivalent to a 5% wage tax.
Mythbuster: Debunking Myths About Tort System Costs, January 2007,
Center for Justice and Democracy, accessed 5 May 2008 at
http://centerjd.org/MB_2007costs.pdf, about ‘tort tax’, ‘tort reform’, and
overstated tort costs. Ross Eisenbrey, Tort Costs and the Economy: Myths,
exaggerations, and propaganda, briefing paper no. 174, dated 2 November
2006, Economic Policy Institute (EPI), p. 7 gross exaggeration of the costs
of the tort system, p. 5 about the methods used by Towers Perrin to esti-
mate tort costs as uncertain to outsiders, p. 1 about special interests and the
Bush administration in 2004 claiming a tort crisis hurting U.S. competi-
tiveness and employment, and pp. 2–7 about no correlation with job
growth, research and development, productivity, healthcare costs, and U.S.
corporate profits. “Legal Reform: The High Costs of Lawsuit Abuse,”
news release, 5 January 2005, Office of the Press Secretary, The White
House, about the White House warning with excerpts. Addressing the
New Health Care Crisis: Reforming the Medical Litigation System to
Improve the Quality of Health Care, 3 March 2003, Office of the Assistant
Secretary for Planning and Evaluation, U.S. Department of Health and
Human Services, p. 1 for the government finding of excesses of the litiga-
tion system. Robert W. Wood, “Jobs Act Attorney Fee Provision: Is It
Enough?”, Tax Notes, Vol. 105, No. 8 (15 November 2004), p. 961, col. 1
for contingent attorney fees that may be 40 or 50 percent of recovery and
sometimes much higher.
195 tab: 5.5
Occupational Outlook Handbook, 2006–07 Edition, Bureau of Labor
Statistics, U.S. Department of Labor, http://www.bls.gov/oco accessed 27
June 2006, for employment figures of year 2004. Calculation of jobs per
1000 people done using the 2004 total U.S. population of 293,907,000
from Statistical Abstract of the United States 2006 (125th Edition), p. 8,
table 2. I am not using the population of 294,056,000 from the 2008
Statistical Abstract because that would represent an incomplete update of
people counts used to calculate the population-adjusted statistics. If the
job counts of 2004 were revisited like the population count, reason
suggests the causes of upward revision for total population could likely
require a general upward revision of job counts as well. Occupational
Outlook Handbook, 2008–09 Edition, Bureau of Labor Statistics, U.S.
Department of Labor, http://www.bls.gov/OCO accessed 15 September
2008, for employment figures of year 2006. Calculation of jobs per 1000
people done using the 2006 total U.S. population of 299,801,000 from
Statistical Abstract of the United States 2008 (127th Edition), as accessed
via the U.S. Census Bureau portal Web page at http://www.census.gov
/compendia/statab on 16 September 2008, p. 7, table 2.
196 para: apropos

The ‘Employment’ section of the “How to Interpret Occupational Infor-
mation Included in the Handbook” Web page of the Occupational Outlook
Handbook, 2006–07 Edition accessed 7 May 2008 at
http://www.umsl.edu/services/govdocs/ooh20062007/oco2001.htm#emply,
about the source combining several data sources, primarily using data from
the Occupational Employment Statistics (OES) survey, and using the
Current Population Survey (CPS) survey for self-employed and unpaid
family workers, and the fact that the employment numbers cited in the
source differ from the OES, CPS, and other employment surveys The
count of lawyers in 2004 from table 5.5 was calculated using several
sources of data, and the analogous counts used in figure 5.9 were calcu-
lated only from the CPS survey. “Occupational Employment Statistics:
Frequently Asked Questions” Web page accessed 4 November 2008 at
http://www.bls.gov/oes/oes_ques.htm, vide question 16 for worker types
not covered as ‘employees’ by the OES survey, as quoted, and vide ques-
tion 29 for the design of the OES survey methodology intended to develop
cross-sectional employment and wage estimates but less useful for time
comparisons. The “Lawyers” Web page of the Occupational Outlook
of Labor, accessed 27 July 2006 at http://www.bls.gov/oco/ocos053.htm,
and accessed 7 May 2008 at http://www.umsl.edu/services/govdocs
/ooh20062007/ocos053.htm, about intense competition for student admis-
sion to most schools, intense job competition because of the large number
of yearly graduates, difficulties for and the slow decline of self-employed
lawyers, growing legal complexity, and the trend toward legal expertise
concentrated with (fewer?) large corporations and government, and the
increasing use of legal clinics by middle-income people and of alternatives
to litigation. The “Lawyers” Web page of the Occupational Outlook
of Labor, accessed 7 May 2008 at http://www.bls.gov/oco/ocos053.htm,
about intense competition for student admission to most schools, intense
job competition because of the large number of yearly graduates, difficul-
ties for and the slow growth of self-employed lawyers, growing legal
complexity, and the trend toward legal expertise concentrated with
(fewer?) large corporations and government, and the increasing use of
legal clinics by middle-income people and of alternatives to litigation.
Alternatives to litigation are suggestive of a cost-control mechanism.
Could a plutocratic two-class de facto legal system be developing?
197 fig: 5.9
Four data sets (three employment series and one population series)
underlie the calculated data series shown in figure 5.9. Three pairs of
underlying data sets not strictly compatible due to differing methodology
have been coupled because their data sequences benefit from being avail-
able and having empirical congruency where their ranges join. The only
data series of the four not pieced together I describe first.
A data series in thousands of full- and part-time employees providing
legal services was obtained via hypertext links in email dated 27 May
2008 from the U.S. Bureau of Labor Statistics (BEA). Following the
links, two spreadsheet files of compatible data were downloaded 29 May

2008, with the noted employment data and also data used for subsequent
figures: http://bea.gov/industry/xls/GDPbyInd_VA_NAICS_47to97R.xls for
the employment data of years 1977–1997, and http://bea.gov/industry
/xls/GDPbyInd_VA_NAICS_1998-2007.xls for the employment data of
years 1998–2006. I had obtained equivalent employment data only on 29
April 2008 by using the custom data selection feature on the BEA website
at http://www.bea.gov located logically under “Industry Economic
Accounts” -> “Gross-Domestic-Product-by-Industry table selection.” The
second link is “GDP by Industry” as of 13 February 2009, but in either
form the current data has been made easily obtainable by the BEA.
“Industry Output and Employment” Web page at http://www.bls.gov
/emp/empind2.htm and linked data sources accessed 14 May 2008 for a
data series in thousands of legal service jobs for the years 1990–2006
found in the industry employment projections files released in December
2007 from the the U.S. Bureau of Labor Statistics (BLS)—the data is unof-
ficial for direct consumption and used by the BLS for developing projec-
tions. Employment data was taken from the release of December 2005 for
the years 1972–1989, not endorsed as compatible with the data from the
December 2007 release for the absence of data for years prior to 1990;
however, the two data sets are identical for the common years 1990–2004
except for the last year with a value of 1381.1 in the December 2005
release and 1382.4 in the December 2007 release.
tennial ed., part 1, U.S. Bureau of the Census, accessed 7 May 2008 via
the portal at http://www.census.gov/prod/www/abs/statab.html, p. 140, 2nd
table, series D267, for the number of thousand lawyers and judges for
years 1900–1970, using for the 1950 datum the classification of 1960 not
1950 (182 not 184), using for the 1960 datum the classification of 1970
not 1960 (218 not 213), and for the 1970 datum using the value for at least
14 years old not for at least 16 years old (274 not 273).
A compilation of employed lawyers and employed judges derived from
Current Population Surveys was obtained via email by request in April
2008 from the U.S. Bureau of Labor Statistics for the number of thousand
lawyers and of the number of thousand judges for years 1972–2007, with
305 lawyers and 17 judges (322 total, greater than 274 by 48) given for
year 1972, and with 346 lawyers and 18 judges (364 total, greater than 322
by 42) given for year 1974.
tennial ed., part 1, p. 8, 2nd table, series A7, for total U.S. resident popula-
tion data for July 1st of years 1900–1920, and series A6, for total U.S.
population data for July 1st of years 1930–1960; the data for years 1960
and 1970 were preliminary, and the 1970 datum was for the last given year
not used, a value of 204,879. Statistical Abstract of the United States:
2008, U.S. Census Bureau, section 1, “Population,” p. 7, table 2, for total
U.S. population data for July 1st of all given years 1960–2006, the datum
for 1960 agrees with the bicentennial ed., and p. 8, table 3 for the U.S.
population on 1 July 2007 projected to be 300,913 thousand.
197 para: definitions, inventories, 1991, (GDP), surplus, markets

BEA Glossary, accessed 18 June 2008 from the BEA website
(www.bea.gov), for the BEA's definitions. The end of the entry for inter-
mediate inputs was dropped: “Related terms: Final uses(s), Input-output (I-
O) accounts, Intermediate purchases.”
198 fig: 5.10, 5.11
BEA spreadsheets GDPbyInd_VA_NAICS_47to97R.xls and
GDPbyInd_VA_NAICS_1998-2007.xls as downloaded 29 May 2008 for
the Gross Domestic Product (Value Added) of the United States and of
U.S. ‘legal services’ for the years 1977–2006 and Gross (Domestic?)
Output of the United States and of U.S. ‘legal services’ for the years 1987–
2006. BLS industry employment projections files, December 2007 release
for Gross Domestic Output of the United States and of U.S. ‘legal services’
for the years 1972–2006.
199 para: prowess
Peter D. Schiff with John Downes, Crash Proof: How to Profit From
the Coming Economic Collapse (Hoboken, New Jersey: John Wiley &
Sons, Inc, 2007) p. 44 about good GDP versus bad GDP, and p. 42 for
other considerations to ponder about GDP.
200 para: Economist
“Daylight, magic and the Supreme Court,” Economist, Vol. 357, No.
8201 (16 December 2000), p. 35, col. 1 for the number of lawyers per
100,000 in the United States, England, France, and Japan given as 281, 94,
33, and 7 respectively with no identification of sources.
200 para: tiger
The wording was ‘vrais morceaux de tigre’ meaning real bits of tiger,
accessed circa 2006 from http://www.kelloggs.fr/marques/frosties.html by
clicking with the mouse for the nutritional information of Frosties GRRR
cereal. You could also apply a search engine to the phrase, within double
quotes perhaps.
201 para: thesis
I am being facetious and not actually making an offer of refund, if it
pleases the court. I emphasize the word ‘wish’, Your Honor.
201 para: touching
Oren Dorell, “McKinney apologizes for incident with cop,” online
article, USA Today, dated 7 April 2006, as accessed 14 July 2006 at
http://www.usatoday.com/news/washington/2006-04-06-mckinney_x.htm,
for the incident in which a U.S. Capital Police officer, not recognizing
Representative McKinney with her new hairstyle, called for and then put
his hand on her in his security role—what McKinney's attorney Mike
Raffauf called ‘inappropriate touching’—to which McKinney's reply was,
reportedly, a striking message delivered by cell phone.
201 para: said, war

“About Mark” Web page, as accessed 7 May 2008 from the Corallo
Media Strategies website at http://www.corallomedia.com/pages/aboutmark
.html, about Mark Corallo's background to include a bachelors degree but
no law degree. Statement of Mark Corallo, Director of Public Affairs, on
the Hamdan Ruling; U.S. Department of Justice; 8 November 2004,
accessed 14 July 2006 at http://www.usdoj.gov/opa/pr/2004/November
/04_opa_735.htm, for the quote.
201 para: contact
Trial Memorandum of President William Jefferson Clinton, In the
Senate of the United States Sitting as a Court of Impeachment, 13 January
1999, as accessed 25 June 2008 at http://clinton4.nara.gov/textonly/WH
/New/html/senatebrief.html, for the quote.
202 para: *x*x*
Addressing the New Health Care Crisis, p. 15 citing Robert E. Keeton
and Jeffrey O'Connell, Basic Protection for the Traffic Victim: A Blueprint
for Reforming Automobile Insurance (Boston: Little, Brown, 1965), no
page given, for the excerpt having in the government source clarification
in brackets and an ellipsis in the position shown but not in the style shown.
202 para: up
113 Stat. 430–481, for the Treasury and General Government Appropri-
ations Act, 2000, Public Law 106–58, p. 478 for changing the President's
yearly compensation from $200,000 to $400,000 effective at noon on 20
January 2001.
203 epi: clients
Ron Paul, “Speech of Hon. Ron Paul of Texas in the House of Repre-
sentatives,” Congressional Record, Extensions of Remarks, daily edition,
14 June 2005, p. E1228 for the epigraph.
203 epi: money
Susan Dentzer et al., “Bitter Harvest,” Newsweek, Vol. 105, No. 7 (18
February 1985), p. 60, col. 3 for the quote from Steve Lettow. It may be
that individuals and partnerships were effectively using farm land and
farming capital as tax-free profits shelters and speculative investments to
be liquidated later subject to a lower tax bracket, but I can't be sure from
the article. The experts who contrive such things are called financial engi-
neers, and you are effected by financial engineering because natural stew-
ardship is not actually dismissed by capitalism (nor actually aggrandized
by socialism): that is the consequences of stewardship are not changed by
the social assignment of its responsibility. Without income tax, this issue
would not be.
204 para: harassment
Kenneth R. Pyle, “To Tax or Not to Tax: Should Contingent Attorneys'
Fees be Included in the Successful Litigant's Gross Income?”, Delaware
Journal of Corporate Law, Vol. 30, No. 3 (2005), accessed 23 May 2008
via an SSRN summary Web page at http://papers.ssrn.com
/sol3/papers.cfm?abstract_id=893454, p. 919 about the Spina case perhaps
best illustrating the absurdity of taxation of contingent attorneys' fees on

the plaintiff, and p. 895, fnotes 64, 67 and p. 896 about legal expenses and
the alternative minimum tax. Cynthia C. Spina v. Forest Preserve District
of Cook County, John Zielinski, John Tinetti, Clarence Calabrese, Michael
Nudell, Howard Jones, and Steven Castans, 31 May 2002, West's Federal
Supplement, Second Series, Vol. 207, No. 1—authoritatively cited as 207
F.Supp.2d 764 (N.D. Ill. 2002)—p. 767 for the Spina's initial employment,
filing with the Equal Employment Opportunity Commission, repercussions
of the investigation, and the suspensions ‘and/or’ terminations of officers
that resulted, p. 764, col. 2 for the lawsuit pertaining to Spina's allegations
of sexual discrimination, p. 768, col. 1 about the refusal of the District to
produce hundreds of documents and the resultant issuance on 21
November 2001 of ‘an Order sanctioning the District for its flagrant disre-
gard of the Federal Rules of Civil Procedure, and the authority of this
Court,’ p. 764, col. 1 for Magistrate Judge Keys, p. 767, col. 1 and p. 769,
col. 1 for the jury verdict on 12 December 2001 awarding Plaintiff $3
million in noneconomic compensatory damages against the District, and p.
779, col. 1 for Plaintiff having the ‘option of accepting within 21 days of
this decision, a $300,000 award or a new trial on the issue of damages
alone.’
“Case Summary” Web page for case 1:98-cv-01393, Spina v. Forest
Preserve Cook, et al, accessed circa 15 July 2006 from the PACER website
of the Federal Court of the Northern District of Illinois within the Seventh
Circuit at http://ecf.ilnd.uscourts.gov by using case number ‘98-1393’, for
the filing date of 6 March 1998, Judge Keys' first name Arlander, many
named defendants (who were coworkers), and other unnamed defendants
who were also employees of the Forest Preserve (District) of Cook
County. Note the results of a website search for a history of documents
produced a table listing documents with their document numbers, and their
dates filed, entered, and terminated, as applicable. Links permitted access
to PDF copies of the documents themselves, each bearing a stamped-on
docketed date, apparently synonymous with entered date. The dates
returned by the search results and borne by the PDF copies are both used
for the citation of such documents infra. Memorandum Opinion and
Order, Doc. No. 124, Case No. 98-C-1393, filed 22 November 2001, dock-
eted 23 November 2001, the cover page for the date of 11/22/2001 with
the second ‘2’ of 22 handwritten, perhaps over a ‘1’ and the stamped time
of ‘01 NOV 21 PM 2:41’ as the date and time the document was received
by the central Clerk's Office, but p. 45 for the date 22 November 2001
with Judge Keys' signature, p. 9 for the description of District's discovery
abuses and the quote about the Court's conclusion—I am supposing the
order was issued 21 November 2001 based on 207 F.Supp.2d 768 (N.D.
Ill. 2002) as cited supra—p. 23 for the Defendant's intent ‘to present
evidence of the romantic, domestic relationship between Officer Spina and
Officer Flynn, of Officer Flynn's suicide, and of the gynecological
symptom that appeared in 1997, and pp. 21–2 for certain allegations Spina
of sexual harassment by Spina having the potential to be shown exaggera-
tions with confirmation of ‘Officer Spina's romantic involvement with
Officer Flynn.’ Judgment in a Civil Case, Doc. No. 140, Case No. 98 C
1393, filed 12 December 2001, docketed 14 December 2001, as accessed
17 November 2008 from the aforesaid PACER website of the Northern

District of Illinois, for the judgment in favor of Spina in the amount of
$3,000,000. Because the next document, Doc. No. 175, is reprinted in 207
F.Supp.2d 767–79 (N.D. Ill. 2002), the page reference for the reprint in
West's publication will be given in parentheses. Memorandum Opinion
and Order, Doc. No. 175, Case No. 98-C-1393, filed and docketed 31 May
2002, pp. 24, 31 (p. 776, col. 1 and pp. 778–9) for the Court's remedy of
Remittitur giving Spina the option of accepting within 21 days ‘of this
decision’ an award of $3000 for compensatory damages, p. 16 (p. 772, col.
2) for the inadmissibility of punitive damages, which Judge Keys deter-
mined the jury had essential done with the award, p. 6 (p. 769, col. 1) for
the said award being $3 million in noneconomic compensatory damages
against the District, and p. 14 (p. 772, col. 1) for the suicide of Spina's
fiancé in 1999.
204 para: day
Adam Liptak, “Tax Bill Exceeds Award to Officer in Sex Bias Suit,”
New York Times, 11 August 2002, sec. 1, p. 18, cols. 5–6 about Magistrate
Judge Arlander Keys in May 2002 giving Cynthia C. Spina a choice
between a new trial or a reduced award (in compensatory damages) of
$300,000, taxation of Ms. Spina on almost $1 million in lawyers' fees and
(lawyer? court?) costs, the awards late last month (July 2002) of $850,000
in lawyers' fees and nearly $100,000 in costs, the decision yet to be made
by Ms. Spina between a new trial and the reduced award, and the assess-
ment from Plaintiff's lawyer Monica McFadden that by accepting the
$300,000 award Cynthia Spina would owe the Internal Revenue Service
$99,000. Sarah Delano Pavlik, “2006 Legislative agenda item: Amend-
ment to Applicable Sections of the Internal Revenue Code Changing the
deductibility of attorney fees,” an article from the Web page as accessed 23
November 2008 at http://www.isba.org/Legislative/5.html, about the taxa-
tion (or anticipated taxation) of Spina on a damage award of $300,000 as
reduced by the judge plus an award of attorney fees and (attorney? legal?
court?) costs for a total of approximately $1.25 million, all of which was
ordinary income but the deductibility of costs were not further detailed, for
the fact that attorney fees could only be deducted as miscellaneous item-
ized deductions, deductions which are not permitted for determination of
the alternative minimum tax, and for the result that proceeds of $300,000
earned a tax liability of $400,000 (the net gain being $300,000 minus
$400,000 or a debt of $100,000). The aforesaid article appears to be a
posting of Sarah Delano Pavlik, “Amendment to applicable sections of the
Internal Revenue Code changing the deductibility of attorney fees,” ISBA
Section Newsletter, Vol. 52, No. 1 (August 2005) from the Illinois State
Bar Association (ISBA) as indicated by the 2005–2006 Index of Section &
Committee Newsletters accessed 23 November 2008 at http://www.isba.org
/newsletters/2005-2006.pdf. Pyle, “To Tax or Not to Tax,” p. 895, fnotes
64, 67 and p. 896 about legal expenses (especially fnote 64) and the alter-
native minimum tax. 207 F.Supp.2d 764–79 (N.D. Ill. 2002), and p. 777
about Spina and the alternative minimum tax.
205 para: profit

Doc. No. 175 (or 207 F.Supp.2d 767–79 (N.D. Ill. 2002)), p. 21 (p. 774,
col. 2) about ‘alleged harassment’ of Spina, p. 27 (p. 777, col. 1) about
Spina's courage and fortitude, beyond other female police officers, pp. 12–
6, 19–21 (pp. 771–2, 774) for the principle of compensating for emotional
damage, not hardship or inconvenience that is borne well, p. 15 (p. 772,
col. 2) about Spina's dream of becoming a police officer, p. 19 (p. 773, col.
2 and p. 774, col. 1) about the exceptional emotional distress of a termi-
nally ill man discharged from the job and work he used to define himself,
and who grappled with his loss of identity and his stature, and with his
concern for his family's financial well-being. Release and Settlement
Agreement, Doc. No. 208, Case No. 98-C-1393, with a confusing slew of
dates: 14 March 2003 for the date of signature by Spina and her sole
attorney, the 18th for the fill-in-the-blank date and date of the signature of
the District's chief attorney on behalf of all defendants, the 21st for the
Court's filed date, and the 27th for the Court's docketed/entered date, pages
are unnumbered, p. 2, paras. 2–3 for the settlement of a total principal sum
of $1,525,000 comprised of $375,000 for compensatory damages to Spina
with the remainder being court-approved attorney's fees and expenses
(which I suppose includes court costs) to be paid in four installments with
interest as negotiated, pp. 7–8, para. 22 for the effect date of the agreement
set as the eighth day after Spina signs it, pp. 3–5, paras. 7–10 for the
dismissal of any and all liabilities concerning the incident(s) of the case
and not part of the specified settlement, and p. 9 for the three signatures on
the settlement agreement. “Federal Tax Brackets” Web page from Money-
chimp as accessed 29 November 2008 at http://www.moneychimp.com
/features/tax_brackets.htm, for a rough tax calculation using inputs of
single for filing status and $381,250 for taxable income, resulting in a tax
of $114,770 in 2003, of $114,345 in 2004, of $113,908 in 2005, and of
$113,298 in 2006. Neglecting interest, each installment from the District
totalled $381,250, of which Spina received $93,750. During the same
browser session I also used trial and error, for tax year 2002 and a filing
status of single, to determine that a taxable income of $1,096,000 corre-
sponded to a tax of $399,255. The District is a government entity
supported at taxpayers' expense, and criminal liability was not at issue.
Three police officers were suspended, of which one quit and another
appealed the termination of his employment in Illinois State court (see
Doc. No. 124, p. 3 w/ fnote 2). It seems the suspended officers fared about
as well as Officer Spina or better. Only agents of the U.S. legal system
profited from the Spina lawsuit, the ones with law degrees quite hand-
somely, and all at taxpayers' expense.
206 para: Islands
Congressional Globe, 37th Congress, 1st session (1861), New Series
No. 20 (30 July 1861), p. 315, col. 2 for Senate debate in 1961 between
Senators Daniel Clark (R-New Hampshire) and James Fowler Simmons
(Whig-Rhode Island)—shown supra in appendix 6 on pages 420–1 and
found via J. S. Seidman, Seidman's Legislative History of Federal Income
Tax Laws, 1938–1861 (New York: Prentice-Hall, Inc., 1938), pp. 1042–3.
From the aforesaid Globe volume one may find p. 208, col. 1 for the
arrival of House Bill No. 54 with tariff and income tax received by the
Senate for consideration and referred to the Senate Committee on Finance
on 19 July, p. 229, col. 3 for a bill from the House Committee of Ways and
Means introduced to the House and ordered to be printed on July 23rd, p.
253, col. 3 to p. 255, col. 3 for Senate debate on July 25th, p. 278, col. 1 to
p. 279, col. 1 for a replacement text of the House Bill No. 54 from the
Senate Committee on Finance and debate on July 26th, p. 297, col. 3 for
order to print proposed version of House Bill No. 54, p. 313, col. 1 to p.
323, col. 1 for involved Senate debate on July 29th amending the tariff
provisions, favoring income tax in lieu of a land tax proposed by the
House (p. 313, col. 3 and p. 314, col. 1), and considering the constitution-
ality of the income tax provisions and federal subsidy of cod fishermen (p.
321), p. 335, col. 3 and p. 336, col. 1 for Senate adoption of a new version
of House Bill No. 54, p. 354, col. 2 for House rejecting the Senates
changes and requesting a committee of conference on 30 July 1861, p.
343, col. 3 and p. 344, col. 1 for Senate agreement to a conference with the
House on 30 July 1861, p. 365, col. 2 for Senate agreement reaching the
House on July 31st, p. 395, col. 3 to p. 396, col. 2, p. 397, col. 3 to p. 400,
col. 2 for the passage of House Bill No. 54 as given by the report of the
committee of conference on August 2nd, p. 415, col. 2 to p. 416, col. 1 for
adoption of the report by the House, p. 426, col. 2 for the signature of the
President pro tempore chairing the Senate on August 3 after having
received the signature of the Speaker of the House, p. 431 for confirmation
on August 3rd that the bill was enrolled (and ready for President Lincoln's
consideration). House Bill. 54 became the Act of 5 August 1861, ch. 45.
The Congressional Globe records the date Lincoln signed many acts by
way of his messages to either House of Congress (e.g. p. 447, col. 2, p.
454, cols. 1–3, p. 456, cols. 2–3), but his signing of the first federal income
tax law is not engrossed in the contemporary record. Lincoln's signature is
evinced at the end of the tax act, at 12 Stat 327, with the line: “APPROVED,
August 6, 1861.” Pyle, “To Tax or Not to Tax,” p. 902 for term income
with respect to the not always explicit Internal Revenue Code, p. 889 for
the courts of the 5th, 6th, and 11th circuits that determined the contingent
fee is to the plaintiff not gross income and so not a tax liability, for the
courts of the 1st, 2nd, 3rd, 4th, 7th, 8th, 10th, and federal circuits that
determined the exact opposite, and for the Ninth Circuit that held that tax
liability to the plaintiff depended of State law. James Flynn and Patrick
Lucignani, “Litigants Face Tax on Legal Fees,” New Jersey Law Journal,
16 May 2005, for the Courts of Appeals of the 5th, 6th, and 11th Circuits
that determined the contingent fee is to the plaintiff not gross income and
so not a tax liability, for the 2nd, 3rd, 4th, 7th, 10th, and Federal Circuits
that determined the exact opposite, and for the Ninth Circuit that held that
tax liability to the plaintiff depended on State law. Circuit Map of Court
Circuits accessed 23 May 2008 at http://www.uscourts.gov/images
/CircuitMap.pdf for Illinois (where the Spina case was tried in a district
court) in the Seventh Circuit and the Ninth Circuit exactly comprising the
States of Alaska, Arizona, California, Hawaii, Idaho, Montana, Nevada,
Oregon, Washington, the territory Guam (GU), and the associated
commonwealth Northern Mariana Islands (MP)—there was also an inter-
active map at the website affirming the meaning of GU and MP.
206 para: bench

John P. Elwood, Deputy Assistant Attorney General, “Term of the
Commissioner of Internal Revenue,” a memorandum opinion for the
counsel to the President, dated 4 December 2007, accessed 29 May 2008
at http://www.usdoj.gov/olc/2007/irs-commissioner-term-opinion120407.pdf,
p. 2 about Charles Rossotti who was appointed Commissioner on 13
November 1997 and left on 12 November 2002 after completing a five-
year term, and his successor Mark Everson who was nominated 22 January
2003, confirmed by the Senate on 1 May 2003, and appointed on 5 May
2003, p. 1 about appointment the prerogative of the President per 26 U.S.C
7803(a)(1)(A), and p. 6, fnote 7 about a nominee potentially serving the
remainder of Commissioners Everson's five-year term (5 May 2008 to 4
May 2008) that Mr. Everson is evidently not serving at the time of this
memorandum. George Jones, CCH News Staff, “Stiff Starts as Acting IRS
Commissioner,” Tax News, an online archive, dated 21 September 2007,
accessed 29 May 2008 at http://www.centerfortaxstudies.com/blog/taxnews
/2007/09/, about Mark W. Everson leaving the IRS on 4 May (2007)—
found using information from Wikipedia, the similarity of which suggests
the same article may be found in CCH 2007 TaxDay.
Pyle, “To Tax or Not to Tax,” p. 889, fnote 18 for four cases with
rulings in 2000 or 2001 and involving the Commissioner's enforcement of
taxation of contingent attorneys' fees, p. 921 w/ fnotes 305–6 for the
Commissioner's position described as draconian in relation to a 2001
ruling and in the Banks case before the Supreme Court, p. 886 for the
Internal Revenue Service's petition of certiorari regarding the Banks and
Banaitis cases granted by the Supreme Court on 1 November 2004, and
pp. 909, 916 about the submission of amicus briefs to the Supreme Court.
Robert W. Wood, “Supreme Court Attorney Fees Decision Leaves Much
Unresolved,” Tax Notes, Vol. 106, No. 7 (14 February 2005), p. 793, col. 1
w/ fnote 4 about the denial of certiorari requested by the taxpayer in four
cases in the years 2001–2002 and the grant of certiorari requested by the
IRS (Internal Revenue Service) in the subsequent cases of Banaitis and
Banks, p. 794 about the ‘general rule’ announced by the Court having
uncertain and uncomprehensive scope counter to generality, and p. 795,
col. 1 about the suggestion of the Supreme Court's decision that wording in
a contract or settlement agreement asserting that contigency fees are in lieu
of statutory fees might make such fees nontaxable to the attorney's client.
Banaitis v. Commissioner of Internal Revenue, argued and submitted 14
February 2003, filed 27 August 2003, West's Federal Reporter, Third
Series, Vol. 340, Nos. 1 and 2—authoritatively cited as 340 F.3d 1074 (9th
Cir. 2003)—p. 1074 for the argued and submitted date of 14 February
2003, the filed date 27 August 2003 taken to be the date of decision, and
regarding contingent attorney fees the loss of Commissioner to taxpayer
Banaitis at appellate court. 345 F.3d 373 (6th Cir. 2003), p. 382, col. 2 for
the appellate judge's statement “The Commissioner has always taken the
position that contingency fees must be included, based on the anticipatory
assignment of income doctrine.” that connotes an adamant position, p. 373
for the argued date of 12 March 2003, the decided and filed date of 30
September 2003, and regarding contingent attorney fees the loss of
Commissioner to taxpayer Banks at appellate court. Frank D. Wagner,

Reporter of Decisions, United States Reports, Vol. 541, “Cases Adjudged
in the Supreme Court at October Term, 2003: March 2 Through June 8,
2004,” p. 958—authoritatively cited as 541 U.S. 958—vide ‘Certiorari
Granted’ for the certiorari granted and case consolidation of Commissioner
of Internal Revenue v. Banks and v. Banaitis, and vide the page header for
grant date of 29 March 2004—found via Pyle, “To Tax or Not To Tax,” p.
890, fnote 19. Commissioner of Internal Revenue v. Banks and v. Banaitis,
argued 1 November 2004, decided 24 January 2005, West's Supreme Court
Reporter, Vol. 125A, Nos. 6–14—authoritatively cited as 125 S.Ct. 826
(2005)—p. 833, col. 2 about the Supreme Court's review of arguments by
respondents (Banks and Banaitis via counsels) and their amici (their third-
party friends), the reluctance of the Court to entertain novel propositions,
and the quote “We decline comment on these supplementary theories.”, p.
826, col. 1 for the decision date 24 January 2005, p. 828, col. 1 and p. 834,
col. 2 about reversal of Banks and Banaitis decisions of the Sixth and
Ninth Circuits respectively and the unanimity of the decision written by
Justice (Anthony M.) Kennedy with the exception of Chief Justice
(William H.) Rehnquist who took no part in the decision (thus eight judges
concurred), p. 829, col. 1 about the general rule created by the decision,
and p. 834, col. 1 about the fee-shifting argument, the tenuous hope to
taxpayers implied by the wording of the decision, and the quote “We need
not address these claims.”.
The term ‘justices’ is a misnomer implying the concepts justice and
legality are synonymous; ‘legalitists’ would be a more accurate term.
Justice or any social condition comes from people, or it does not come at
all. Emanation of justice at large requires democracy and liberty: it
requires sublime culture, a more perfect cultural union not a more perfect
government mandate.
207 para: imprisonment
Flynn and Lucignani, “Litigants Face Tax on Legal Fees,” for the taxa-
tion provision not being retroactive and potentially not covering
employees in cases of product liability, invasion of privacy, some instances
of defamation. Pyle, “To Tax or Not to Tax,” p. 891 for the taxation provi-
sion not being retroactive, and pp. 892, 923 the tax provisions not covering
concerns outside the scope of employment like defamation, false imprison-
ment, emotional distress, and punitive damages.
207 para: 2000
Pyle, “To Tax or Not to Tax,” pp. 920, 922 about double taxation under-
mining civil rights. Robert W. Wood, “Should taxes be included in
damage calculations?”, Tax Adviser, Vol. 36, No. 10 (October 2005), p.
616, col. 3 and p. 618, col. 1 about the tax consequences of litigation so
uncertain that characterization requires a treatment of probability and the
Internal Revenue Service (IRS) does not guide court procedures, and p.
616, col. 2 about the IRS not definitively accepting a tax treatment until
after the tax has been filed and the statute of limitations (SOL) has expired
years later. 125 S.Ct. 826 (2005), p. 829, col. 2 for notice of deficiency to
Banks. 340 F.3d 1074 (9th Cir. 2003), p. 1078, col. 2 for notice of defi-
ciency to Banaitis.
210 para: purpose
Maury Klein, Rainbow's End: The Crash of 1929 (New York: Oxford
University Press, 2001), pp. 71–2 for the American banking system having
remained unchanged since the National Banking Act of 1863, the two
major ‘problems’ of inelasticity that proponents of the gold standard would
tell you are features, and J. P. Morgan's consortium. “Remarks by
Chairman Alan Greenspan” Web page, a transcript of Greespan's remarks
at the Annual Conference of the Association of Private Enterprise Educa-
tion, Arlington, Virginia on 12 April 1997, accessed 11 Jan 2007 at
http://www.federalreserve.gov/boarddocs/speeches/1997/19970412.htm,
for the various banking periods including the period of national banking
1863–1913 with ‘strains on the financial markets’ each spring and fall as
crops were either planted or marketed. Congressional Globe, 37th
Congress, 3rd session (1863), New Series No. 97 (4 March 1863), p. 1541,
col. 1 for President Lincoln's signing of House Bill No. 659, “An act to
provide ways and means for the support of the Government.” Eric
Rauchway, The Great Depression & the New Deal: A Very Short Introduc-
tion (New York: Oxford University Press, 2008), p. 59 about the creation
of the Federal Deposit Insurance Corporation (FDIC) on a temporary
basis, later made permanent (but it was the only the temporary FDIC
scheme that was made permanent, as elaborated by the endnote for the 6th
paragraph after the paragraph referenced here), the protection it afforded
ordinary American depositors, and the large decline of bank failures that
resulted. Found via Klein, Rainbow's End, p.72, with endnote 23 on page
288, Donald F. Kettl, Leadership at the Fed (New Haven, Connecticut:
Yale University Press, c1986), pp. 18–9 for the chaining of bank deposits
to the banks in New York which loaned for stock market speculation and
for the credit tightening at harvest time. Jeremy Atack and Peter Passell, A
New Economic View of American History from Colonial Times to 1940,
2nd ed. (New York: W. W. Norton & Company, c1994), pp. 514–6 about
the structure of the American banking system legislated with the National
Banking Act (the Act of 25 February 1863, ch. 58) and its problematic
connection to the stock market.
211 para: circumstances
Bank runs from the depositor's position, the one that counts socially,
were first addressed by the Banking Act of 1933, a.k.a. the Glass-Steagall
Act, 48 Stat. 162–195 at pp. 168–180. Klein, Rainbow's End, pp. 72–3
about the structure of the Federal Reserve System, member banks, and
rediscounting. Robert L. Hetzel, The Monetary Policy of the Federal
Reserve: A History (New York: Cambridge University Press, 2008), pp.
12–3 for the initial design of the Federal Reserve System having the exten-
sion of credit through the discount window(s) in exchange for real bills,
defined as short-term commercial paper used to finance the transit of
goods from producers to consumers, and having an elasticity consistent
with what is the real-bills doctrine, pp. 16–7 about open market operations
advocated by the New York Fed in contrast to the real-bills doctrine advo-
cated by others in the Federal Reserve, the use of open market operations
in conjunction with advances from the discount window by the New York
Fed, and the characterization of advances (or real bills purchases) as loans
to member banks through the discount window, noted here lest the
semantic treatment cause confusion. The Federal Reserve System:
Purposes and Functions, 9th ed. (Washington: Board of Governors of the
Federal Reserve System, June 2005), online version, accessed 7 February
2008, p. 47 for a significant revision to the operation of discount windows
instituted on 9 January 2003. Henry William Spiegel, The Growth of
Economic Thought, revised and expanded edition (Durham, North
Carolina: Duke University Press, c1983), p. 348 about real-bills doctrine.
Atack and Passell, Economic View, 2nd ed., p. 567 about the Real Bills
doctrine. Kettl, Leadership at the Fed, p. 23 about “real bills” theory.
tennial ed., part 2, series X424–437, U.S. Bureau of the Census, accessed 7
May 2008 via the portal at http://www.census.gov/prod/www/abs
/statab.html, pp. 991, 994 for kinds of circulating U.S. currency to include
U.S. notes, gold certificates and coins, silver certificates and dollars, and
minor coins, and currency backing, though that described for Federal
Reserve notes and banknotes is not specific to the 1920s. Q. David
Bowers, introduction and narrative in A Guide Book of United States
Paper Money: Complete Source for History, Grading, and Prices (Atlanta,
GA: Whitman Publishing, LLC, c2005), pp. 17, 21, 26, 30 for the
exchange of all currency at par with gold coin as of 1 January 1879 by law
and as of 17 December 1878 by marketplace expectation, and pp. 66, 96,
124, 180 for pictures of Federal Reserve banknotes with notice of security
by U.S. bonds. The United States suspended the convertibility of U.S.
dollars to gold in some way for a period of time to include the latter part of
WWI. Charles H. Feinstein, Peter Temin, and Gianni Toniolo, The World
Economy between the World Wars (New York: Oxford University Press,
2008), p. 108 says: “Gold convertibility to the dollar was restored as early
as 1919 *x*x*.” Milton Friedman and Anna Jacobson Schwartz, A Mone-
tary History of the United States, 1867–1960 (Princeton: Princeton
University Press, 1963), p. 192 for: “By the end of the war, the U.S. had
imposed an embargo on gold exports.”, p. 193 for what could suggest no
domestic backing of gold: “The Federal Reserve System therefore began
operations with no effective legislation criterion for determining the total
stock of money. The discretionary judgment of a group of men was
inevitably substituted for the quasi-automatic discipline of the gold stan-
dard.”, p. 191 for the operation of the gold standard and of the real bills
doctrine regarded as quasi-automatic, p. 216 for U.S entry into WWI on 6
April 1917, p. 217, fnote 31 citing the Federal Reserve Bulletin
(September 1917) for instructions: “*x*x* sorting out of your incoming
cash the gold certificates, not paying out any such certificates over your
counter unless especially requested *x*x*” and the same fnote for the
discouragement of the public's requesting gold coins for gifts, p. 220 for
the President's prohibition of gold exports without permission of the
Federal Reserve Board and the Treasury, (made and/or effective?) on 7
September 1917, and p. 222 for the lifting of the gold embargo in June
1919—thus, because this source is highly regarded for its comprehensive-

ness, we can conclude the international aspect of the U.S. gold standard
was suspended from circa 7 September 1917 to June 1919 but the
domestic convertibility between gold and U.S. dollars was maintained,
until the presidency of FDR.
212 para: prosperity
Klein, Rainbow's End, pp. 76–7 about the 3 November 1919 increase of
the New York Reserve Bank's rediscount rate from 4 to 4 3/4 percent in an
inflationary economy despite political interests on Wall Street and at the
U.S. Treasury and the series of further increases reaching 7 percent by
spring (starting in late March and ending in late June), p. 78 about the
Fed's discovery of open market operations in 1922, pp. 70–1 about
Mellon's tax-cut plan enacted in 1926, virtually benefiting the wealthy
alone and repealing the gift tax, and about Mellon's nonpartisan stinginess
with federal monies, and p. 68 for the notion that three presidents served
under Secretary Mellon. Hetzel, Monetary Policy, p. 13 about abandon-
ment of the gold standard by European and the U.S. governments because
of World War I, p. 22 for the return to the gold standard of the United
States in March 1919, Germany at the end of 1923, Britain in early 1925,
and France in 1926, p. 14 for the increase in the (re)discount rate from 4%
at the end of 1919 to 7% in June 1920, and pp. 32–3 for the transition of
the Fed's function led by the New York Reserve Bank from pure use of the
discount window to the use of open market operations, the development of
which began in 1923, with the window providing marginal reserves to
meet reserve requirements. Feinstein et al., World Economy, p. 40 w/ table
3.1 for the pervasive inflation in Europe as a result of World War I and
abandonment of the gold standard. Historical Statistics of the United
States, Colonial Times to 1970, bicentennial ed., part 2, series X424–437,
p. 994 for a large increase of Federal Reserve notes on the heels of World
War I. Atack and Passell, Economic View, 2nd ed., p. 565 about the redis-
count rate hikes from the range of 4 to 4.5 percent to the 6-to-7-percent
range in May, pp. 566–7 about the purchase of $400 million in government
securities, the drop of short-term Treasury bill yields from 4.8 percent in
December 1921 to 3.2 percent by April 1922, and the Treasury requesting
future consultation, p. 568 for overnight open market operations becoming
the principal tool of monetary policy in 1924 with the (re)discount rate in a
supporting role, pp. 576–7 for the secretaryship of Mellon from 1921 to
1932, his tax cuts, and the persistent budget surpluses not seen since, and
p. 652, figure 23.1 for a graph of U.S. Government expenditures as a
percentage of GNP from 1789 to 1973, with a sharp turn higher after the
1920s. “Remarks by Chairman Alan Greenspan” Web page, for the strict
restraint that the gold standard imposed on U.S. Government spending
through the 1920s, virtually eliminating deficit spending.
213 para: reparations
Klein, Rainbow's End, p. 125 for World War I making the United States
a creditor nation. Robert S. McElvaine, The Great Depression: America,
1929-1941 (Time Books, 1984), p. 33 for WWI changing the United States
from a debtor to a creditor nation. Atack and Passell, Economic View, 2nd
ed., p. 573 for the war changing the United States from a debtor nation that
in 1914 owed around $3.7 billion to a creditor nation that in 1920 was
owed almost $12.6 billion, and p. 570 for the United States as the
unwilling leader of the world economy. Feinstein et al., World Economy,
p. 36 for the inadequacy of U.S. leadership in the new role of world leader.
Ernest R. May, “World War I: 15. Diplomatic History of the War,” EA–99,
vol. 29, p. 335, col. 1 for Wilson ending diplomatic relations with
Germany on 3 February 1917, p. 335, col. 2 for the U.S. declaration of war
on 6 April 1917 but not on whom, p. 348, col. 1 about the United States
having been at war with Germany, Austria, and Hungary (as Austria-
Hungry) but not Bulgaria or Turkey, p. 330, col. 1 and p. 332, col. 2 and p.
334, col. 2 for the Allied blockage and an associated contraband list, p. 330
for the naval disadvantage of the Central Powers constraining Germany to
the use of submarines, p. 334, col. 1 about the armistice agreement signed
on 11 November 1918, p. 343, col. 2 about revolution in a moribund
German Empire, p. 334, col. 2 for President Wilson's insistence on a
charter for a League of Nations, p. 340, col. 2 and p. 341, col. 1 for the
lines of nationality in Wilson's Fourteen Points, p. 346, col. 1 for U.S. and
British recommendation to divide Poland from Germany along lines of
nationality, pp. 345–6 for the deferment of reparations, pp. 346–7 for the
German signing of the Treaty of Versailles only with the preparation of
further military action by the Allies, and p. 348, col. 1 for the withholding
of ratification of the Treaty of Versailles by the Senate (which would have
put the United States in the League of Nations). 40 Stat. 1, for the ‘Joint
Resolution Declaring that a state of war exists between the Imperial
German Government and the Government and the people of the United
Statea and making provision to prosecute the same.’, the Resolution of 6
April 1917, ch. 1, p. 1, naturally, for the presidential approval of the war
declaration given on 6 April 1917. 40 Stat. 429, for the ‘Joint Resolution
Declaring that a state of war exists between the Imperial and Royal
Austro-Hungarian Government and the Government and the people of the
United States, and making provision to prosecute the same.’, the Resolu-
tion of 7 December 1917, p. 1 for the presidential approval of the war
declaration given on 7 December 1917. The two war declarations do not
identify enemy subjects, peoples, or nations, only enemy governments.
The U.S. Statutes do not have any other declarations of war during the
period of World War I. Michael Howard, The First World War (New York:
Oxford University Press, 2002), pp. 3, 14–5, 48–9 for British command of
the world's oceans during World War I, and p. 5 for the German annexation
of Alsace and Lorraine (not hyphenated) in 1871, something remembered
by the French with bitterness.
Bernard M. Baruch, The Making of the Reparation and Economic
Sections of the Treaty (New York: Howard Fertig, 1970), pp. 4–8 for an
account of armistice and peace negotiations that evince Wilson's peace
built on his Fourteen Points and illusory common ground, p. 48 for
Germany extracting from France in 1870 (which seems a year too soon)
(the equivalent of) $1,000,000,000, an amount then unthinkable (and the
figure perhaps in roughly year 1920 dollars since that is the year of this
source's original copyright, but perhaps in year 1870 dollars, however
roughly the same), and pp. 8–9, 15, 18, 46 about the most extreme of the
entertained reparation totals to be assigned to Germany in discussions of

the Allied's Commission on Reparation of the Peace Conference, held in
Paris and begun 3 February 1919, to have been $8 billion and $120 billion
and singularly being of ‘English origin’. Arthur S. Link, “Wilson,
(Thomas) Woodrow,” EA–99, vol. 29, p. 10, col. 1 for Wilson's negotiation
of an armistice based on his Fourteen Points. F. L. Carsten, “Germany: 17.
The Revolution and the Weimar Republic, 1918–1933,” EA–99, vol. 12, p.
673, col. 1 for the ‘undefeated army’ welcomed by (Chancellor Friedrich)
Ebert in Berlin. Stephen E. Ambrose, The Supreme Commander: The War
Years of General Dwight D. Eisenhower (Jackson, MS: University Press of
Mississippi, c1999), p. 660 for the belief of most Germans, particularly
relevant near the end of World War II, that the German armies were
winning when the armistice of World War I was accepted in 1918. Robert
H. Abzug, Inside the Vicious Heart: Americans and the Liberation of Nazi
Concentration Camps (New York: Oxford University Press, 1985), pp. 33,
68, 128 for the forcing of German civilians to tour the concentration camps
and labor to bury the victims. David S. Patterson, “The United States and
the Origins of the World Court,” Political Science Quarterly, Vol. 91, No.
2 (Summer 1976), pp. 290–4 about the inclusion of article 14 of the Treaty
of Versailles at British and American insistence despite Wilson's objection.
Quincy Wright, “Versailles, Treaty of,” EA–99, vol. 28, p. 45, col. 2 for the
Allied estimates (before the signing of the treaty?) of Germany's ability to
pay reparations from a low of $10 billion given by Great Britain (United
Kingdom) to a high of $100 billion from France, and the U.S. figure which
was higher than the British but less than half of $33 billion—for what it's
worth. Raymond J. Sontag, A Broken World, 1919–1939 (New York:
Harper & Row, Publishers, c1971), pp. 7–8 for the American experts esti-
mating damages as specified by the prearmistice agreement to be between
$15 billion to $25 billion and figuring that Germany had the ability to pay
that much, for the political pressure from the general publics of Britain and
France to recover from Germany the entire cost of the war, which was
some astronomical amount beyond Germany's ability to pay, causing
deferment of setting the total figure of German reparations, and pp. 21–3,
30–2 for the waning of hostile British public sentiments to a preference
toward isolationism in early 1920, the full isolationism popular in the
United States, and continued French animosity expressed by militarism.
Stephen A. Schuker, The End of French Predominance in Europe: The
Financial Crisis of 1924 and the Adoption of the Dawes Plan (Chapel Hill:
The University of North Carolina Press, c1976), pp. 4–7 for French secu-
rity concerns, France's decline as a world power, and the enlarged scope of
German reparations liability created at the Paris Peace Conference by
formulation of the Treaty of Versailles, and pp. 12–3 for French preoccu-
pation with the extraction of reparations from Germany. John Keegan,
“Franco-Prussian War,” EA–99, vol. 12, p. 2, col. 2 for the armistice at the
end of the war involving the surrender of Paris which paid an indemnity of
200 million francs, and the Treaty of Frankfurt whereby France lost most
of Alsace-Lorraine and owed an (additional or total?) indemnity of 5
billion francs. Earnest R. May, “World War I: 16. The Postwar World,”
EA–99, vol. 29, p. 349, col. 1 about the new international boundaries of
Europe following the lines of language and nationality more than ever, and
p. 349, col. 2 for the European victors owing $10 billion to their former
ally (the United States) just after the war. Waldo Chamberlin, “League of
Nations,” EA–99, vol. 17, p. 113, col. 2 for the United States never joining
the League of Nations.
214 para: standard
Feinstein et al., World Economy, p. 38 for the seizure of Germany's gold
reserves and equipment such as rolling stock, the extraction of Germany's
coal, and the Dawes Loan (Plan) agreed to in 1924, facilitating reparation
payments that (by some mechanism) were alloted 52% for France, 22% for
the British Empire, 10% for Italy, 8% for Belgium, and the remainder to
other minor Allies, pp. 38, 41 for establishment of the schedule of repara-
tions in May 1921, pp. 40–1 for the hyperinflation of Germany and debate
about whether the cause was reparations and other Allied impositions or
the cause was heavy government deficit spending,. Hyman P. Minsky,
“John Maynard Keynes,” EA–99, vol. 16, p. 412, col. 1 about the resigna-
tion of Keynes at the Paris Peace Conference of 1919 and his book The
Economic Consequences of the Peace (1919). According to the website of
the U.S. Library of Congress on 23 June 2008, a limited edition was
published with a London publisher in 1919, and another edition was
published in 1920 with a New York publisher—some literature may refer
to Keynes' book as a 1920 publication. Schuker, French Predominance, p.
14 for the German reparations total set in May 1921 at 132 milliard gold
marks ($33 billion). Atack and Passell, Economic View, 2nd ed., pp. 572–
3 for Keynes observation about U.S. billing for the war, for the disputed
ability of Germany to have paid reparations and the German hyperinflation
it caused, for the resulting collapse of the German monetary system in
1923, and for issuance of the rentenmark worth 1 trillion paper marks, and
for the Dawes Plan that reduced reparations, backed the new reichmark
with, it says a $800 million loan floated on Wall Street with help from an
easy money policy by the Fed, but the paragraph thereof seems garbled,
and p. 569 for easy monetary policy (in 1924) of the Fed to discourage
gold inflows and help the British restore their gold standard and to facili-
tate selling the Dawes loan on Wall Street and easy again in 1927 to shore
up European currency.
Harold James, “Germany: 2. The Economy,” EA–99, vol. 12, p. 600,
col. 1 for Germany's hyperinflation caused by war expenditures, and
subsequent expenditures for social programs and for compensation for
property lost under the Treaty of Versailles. Carsten, “Germany: 17. The
Revolution and the Weimar Republic, 1918–1933,” p. 674, picture w/
caption for the use of packets of Germany bills denominated in marks as
playthings by children in 1923, shown stacked in the picture, and p. 675,
col. 1 for a ‘new mark’ worth 1 trillion old marks and issued before the
Dawes Plan. Peter Fearon, War, Prosperity and Depression: The U.S.
Economy 1917–45 (Oxford: Philip Allan, 1987), p. 82 for an Agent
General for Reparations tasked with supervising the exchange of repara-
tions in German marks into currencies acceptable to creditors, and p. 76
for easy monetary policy by the Fed from 1924 to 1928, primarily to
encourage readoption abroad of the international gold standard by
reducing the U.S. inflow of gold. George P. Auld, The Dawes Plan and
the New Economics (Garden City, New York: Doubleday, Doran &
Company, Inc., 1928), p. 142 for the Allied Agent General Reparation
Payments located in Berlin and making reparation payments in commodi-
ties purchase in Germany with German marks, and pp. 150–1 for the
Allied Agent General's role in converting and delivering reparations in
kind and in foreign currency, as expedient. Barry Eichengreen, Golden
Fetters: The Gold Standard and the Great Depression, 1919–1939 (New
York: Oxford University Press, 1992), p. 150 for the central feature of
Dawes Plan having been a multinational loan in foreign (non-German)
currency equivalent to 800 million gold marks and derived in October
1924 (nicely dated) from private marketing in New York and other finan-
cial centers, with half the loan coming from the United States, a quarter
from Britain, and the remainder from France, Belgium, the Netherlands,
Italy, Sweden, and Switzerland. Rufus C. Dawes, The Dawes Plan in the
Making (Indianapolis: The Bobbs-Merrill Company, c1925), pp. 245–6,
353 for the loan of 800 million gold marks. Friedman and Schwartz,
Monetary History, pp. 296–7 for a historical account of Fed monetary
policy that was easy from 1924 to 1928, with a peak of moderate restraint
in the third quarter of 1926.
214 para: 1924
Atack and Passell, Economic View, 2nd ed., p. 573 for the American
private sector investing in Germany. John Weitz, Hitler's Banker:
Hjalmar Horace Greeley Schacht (Boston: Little, Brown and Company,
c1997), pp. 72–3 for Schacht's first installment as president of Reichsbank
on 22 December 1923, pp. 104–5 for Schacht's resignation effective 7
March 1930, pp. 109, 114 for Schacht's speaking engagements in Europe
outside of Germany then throughout the United States in 1930, in which he
argued the reparations expected of Germany were impossible and a
‘menace to world peace,’ and his subsequent writing, along the lines of his
lectures as proposed by an American publisher, of the book The End of
Reparations, published March 1931 in New York, shortly thereafter in
London (in an English prose different from the American version), and
around the same time in Germany (in a German prose which must have
constituted the original version), and pp. 142–3 for Schacht's return to the
Reichsbank presidency at Chancellor Hitler's request. Hjalmar Schacht,
The End of Reparations, trans. Lewis Gannet (New York: Jonathan Cape
& Harrison Smith, 1931), pp. 11–3, 240–1 for Schacht's purpose with the
book to not only present to the world a description of the economic
problem of reparations and potential solutions, but also to give a warning
that Germany was not a blind victim to the double standard of morality
inherent in the associated politics, and pp. 31–2 for Schacht's excerpt from
the oft cited paragraph. Auld, Dawes Plan and New Economics, pp. 158–9
about the many ‘Jeremiahs’ (polemists) citing the popular paragraph from
the Dawes report.
214 para: activities
R. Dawes, Dawes Plan, p. 329 for the oft cited paragraph from the
Report of Committees of Experts to Reparation Commission: Complete
Official English Text with Annexes, Report of the First Committee of
Experts, Part I, “The Committee's Conclusion and Scheme,” section VIII,

“The Basic Principles of Germany's Annual Burden,” part (d), ‘The
Distinction Between the Taxpayers' “Capacity to Pay” in Germany and
Germany's Capacity to Pay the Allies’, fifth paragraph, the space within ‘i.
e.’ per the source.
215 para: land
Schacht, The End of Reparations, pp. 32–3 for the block quote identi-
fying a political flaw of the Dawes Plan. Fearon, War, Prosperity and
Depression, p. 83 for confirmation of ill investment, that is between 1924
and 1929 Germany borrowed an amount twice the disbursements on repa-
rations, much of the difference having financed higher German living stan-
dards with the construction of libraries, swimming pools, etc., investments
that did not yield exports.
215 para: purpose
Auld, Dawes Plan and New Economics, p. 257 for Dr. Schacht's wishes
to restrict foreign loans to Germany, not later than the publication date of
1928, when he was president of the bank, p. 272 citing J. M. Keynes, The
Nation and Athenæum, London, 11 September 1926, for the quote of
Keynes on circular paper flow, p.142 for the Allied Agent General for
Reparation Payment posted in Berlin, p. 248 for Owen D. Young as Agent
General ad interim, meaning for a transitional period only, p. 256 for the
American lawyer S. Parker Gilbert succeeding Young sometime in 1924,
pp. 257–61 for the refutation of Schacht, pp. 272–82 for the refutation of
Keynes, and pp. xiii-xiv for refutation of the transfer problem that once
dissected, as the book is inferred to do, is seen to be based on misconcep-
tions. Fearon, War, Prosperity and Depression, pp. 82–3 for the warnings
of Agent General Gilbert, the banks and financial houses that were
receiving generous commissions for underwriting loans having been
‘anxious that the enthusiasm of the public should not be dented,’ and the
interpretation by American investors of the (U.S. Government's lead in
development of the) Dawes Plan as an expression of (U.S. Government)
confidence. Eichengreen, Golden Fetters, p. 150 for the private marketing
of the Dawes loan with public endorsement (by the governments
concerned). Rufus C. Dawes, foreword in Auld, Dawes Plan and New
Economics, p. ix for the active participation of Auld in world-wide discus-
sion of reparation with contributions to newspapers and magazines in
England and the United States, and the pen-name ‘Alpha’ used with an
article by Auld published in New York-based Foreign Affairs in 1923.
216 para: it
Auld, Dawes Plan and New Economics, pp. 159–60 for the block quote
about investor confidence, with the paragraph break of the source between
‘in 1928.’ and ‘Truth justifies’ removed. Carsten, “Germany: 17. The
Revolution and the Weimar Republic, 1918–1933,” p. 674 for large U.S.
loans that brought stability and prosperity to Germany from 1924 to 1929.
Spiegel, Economic Thought, (c1983), p. 603 for loans from the United
States to Germany in excess of Germany's reparation payments.
216 para: earth

Atack and Passell, Economic View, 2nd ed., p. 573 for the upshot of the
Dawes Plan being that the private sector in America essentially paid
foreign obligations to the U.S. Government, the Young Plan of 1929 char-
acterized as an abortive attempt to restructure debt payments, and the
effective cancellation of intergovernmental debt owed the United States
(the unpaid percentage and amount not given), and p. 571 w/ figure 20.7
(very nice) for the chaining of inter-Allied governmental war debts culmi-
nating with the United States which was owed $9.6 billion by the end of
1919 and loans made to Germany to pay reparations to the debtor Allies.
Eichengreen, Golden Fetters, p. 224 the Allies receiving nearly $2 billion
in German reparations between 1924 and 1929 and the United States
(Government) receiving about $1 billion for war debt between mid-1926
and mid-1931. Fearon, War, Prosperity and Depression, pp. 82, 131 for
establishment of the Young Plan in 1929, soon made moot by the Great
Depression, and p. 131 for establishment of new payment schedules by the
Young Plan which on average were ‘less onerous’ that those of the super-
seded Dawes Plan. Feinstein et al., World Economy, pp. 137–8 for the
Lausanne Conference of June 1932 and U.S. recognition in 1934 that
wartime inter-Allied debts would not be paid. Schacht, The End of Repa-
rations, p. 13 for Schacht's quote about miffed German spirit.
217 para: running
Schuker, French Predominance, pp. 12, 16 for Germany's answer to
reparations of the printing press and foreign exchange markets. Bruce
Kent, The Spoils of War: The Politics, Economics, and Diplomacy of
Reparations, 1918–1932 (Oxford: Clarendon Press, 1989), p. 84 for the
refusal of credit, such as in the form of foreign securities, to Germany to
purchase food, and German reluctance or inability to sell gold and foreign
securities as the case may be, but cf. pp. 57–8 for the freezing of German
gold and foreign securities per the armistice as collateral for reparations,
linked by the author to the need for food imports for half-starved Germans,
and cf. p. 1 for the author's cornerstone assumption that Germany was
unable to pay reparations as formulated followed by the author's assertion
that reparations in general are ill conceived essentially because the human
and material costs of war are immediately paid. Feinstein et al., World
Economy, pp. 37–8, 99–100 about the ability and willingness of Germany
to pay irascible reparations. Atack and Passell, Economic View, 2nd ed.,
pp. 578–81 for the consumer revolution of cars, radios, and refrigerators,
the heavy use of credit to buy cars, sometimes at (usury) rates exceeding
30 percent, and the speculation mania creating bubbles of Floridian land
and then the stock market. H. John Thorkelson, “Great Depression,” EA–
99, vol. 13, p. 344, col. 2 about U.S. loans (made in the 1920s) to underde-
veloped nations contributing to overexpansion that resulted in a worldwide
drop of prices and incomes. Fearon, War, Prosperity and Depression, pp.
83, 132 about Latin American countries with precariously one-dimensional
economies showered with dollars. McElvaine, Great Depression, (1984),
p. 19 about the indulgent rejection of traditional values by youths of the
1920s, pp. 17–8 about motorcars, radios, and refrigerators—and I submit
p. 7 for a fitting motto of quintessential academic philosophy rampant in
the early 21st-century West: “The self-interest of the poor coincides with
justice, that of the rich with injustice.”, the practitioners of which are
busily inscribing it as an epitaph on the second Western era. Rauchway,
Great Depression, pp. 47, 75–6 for tractors bought with large loans, and p.
77 about the Federal Farm Board, which obviously didn't solve the
problem, which is the point of my droll cynicism.
217 para: creation
“Remarks by Chairman Alan Greenspan” Web page, a transcript of
Greenspan's speech given in Washington, D.C. on 5 December 1996 at the
Annual Dinner and Francis Boyer Lecture of The American Enterprise
Institute for Public Policy Research, accessed 16 May 2008 at
http://www.federalreserve.gov/boarddocs/speeches/1996/19961205.htm,
for the famous phrase in the context: “But how do we know when irra-
tional exuberance has unduly escalated asset values, which then become
subject to unexpected and prolonged contractions as they have in Japan
over the past decade?” The Course and Phases of the World Economic
Depression, a report presented to the assembly of the League of Nations,
American revised edition (Geneva: Secretariat of the League of Nations,
October 1931), pp. 116–7 about the falling production in most of 45 coun-
tries (hence worldwide) during the third quarter of 1929 and a tendency
during the arrival of 1930 for financial and business people, especially in
the United States, to optimistically assume the economic downturn would
be short-lived. Klein, Rainbow's End, pp. 226, 273 for the attribution of
‘irrational exuberance’ to Americans of the 1920s, p. xviii w/ p. 280,
endnote 6 for the New Economy of the 1990s having paralleled the New
Era of the 1920s with the euphoric dismissal of the ‘old rules’, pp. xiii–xiv
about the initial phase of the crash from Wednesday, October 23, through
Thursday, October 31 and in broader terms ending on November 13, p.
209 for the explanation of ‘air pockets’ as large blocks of stock offered at
whatever market price and remaining unsold—which I submit is the very
distinction of a crash, that is the lack of market resolution—and for the
occurrence of air pockets on (Black) Thursday, p. 221, 223 about no air
pockets on (Black) Monday, p. 227 for air pockets on (Black) Tuesday—
that's it, just Black Thursday and Black Tuesday—p. 233 for the idea that
air pockets can occur above stocks facilitating a strong push upward, pp.
215, 220, 223 for the Fed's Board of Governors taking no action, p. 227 for
the emergency open market operations on Black Tuesday resulting in the
purchase of $132 million in U.S. government securities (but see Atack and
Passell infra), pp. 238, 254, 263, 267, 272 for the series of rediscount rate
cuts, pp. 241–5 about Hoover's projection of optimism to influence
peoples' psyches and assuage the economic downturn, and pp. 249–50
about the happy prognostications filled with seasonal good cheer from
Wall Street financiers and U.S. businessmen. Atack and Passell,
Economic View, 2nd ed., pp. 587–8 for the signs of recession in the
summer of 1929, reflected by the retreat of the Fed's index of industrial
production, p. 606 about the debate among scholars regarding the exis-
tence of a speculative bubble in the stock market, but reasonably consid-
ered to have begun in March-April 1929 by comparing stock prices to their

dividend payments, and p. 615, table 21.3 for open market purchases in the
period October-November 1929 of $120 million.
Carsten, “Germany: 17. The Revolution and the Weimar Republic,
1918–1933,” p. 675, col. 2 for the recall of U.S. loans initiating an
economic crisis in Germany (but see next citation). Feinstein et al., World
Economy, pp. 88–9 for scholarly debate over whether the cause of
Germany's Great Depression was the contraction of capital imports from
the United States or domestic factors, the availability of U.S. capital to
Germany on long-term conditions ending in late 1929, and the change in
the availability of U.S. capital not initiating the German depression but
certainly compounding the problem. Thorkelson, “Great Depression,” p.
344, col. 1 about a wild rise in U.S. stock prices 1924–1929 will little basis
in economic reality, p. 344, col. 2 for the creation of shantytowns called
Hoovervilles in the years 1929–1932, and p. 345, col. 1 about the two-
week national bank holiday prescribed by Franklin D. Roosevelt in March
1933. Found via Klein, Rainbow's End, p. 256 was “The Automobile
Year,” Time, a weekly newsmagazine from Chicago, Vol. 15, No. 2 (13
January 1930), p. 44, col. 2 citing Standard Statistics from the previous
week (the 13th was a Monday) for the quote about the most wasteful class,
with double quotes replacing the single quotes per Time around ‘wasteful’.
“President Discusses Taking Action to Strengthen America's Economy”
Web page, a transcript of the President Bush's speech at the Economic
Club of Chicago given on 7 January 2003, accessed 9 August 2008 at
the President saying, “Consumer spending accounts for about 70 percent
of our economy.” Robert J. Samuelson, “What's the Biggest Threat To the
U.S. Economy?”, Newsweek, Vol. 150, No. 2 (2–9 July 2007), p. 55 about
the threat of a resumption in substantial personal savings to the American
economy, the savings rate dropping to zero in 2005, and most economists
unconcerned about consumer debt. Robert J. Samuelson, “The Great
Shopping Spree, R.I.P.,” Newsweek, Vol. 151, No. 17 (28 April 2008), p.
49 for the percentage of the United States' gross domestic product (GDP)
purchased by America's consumer spending at 63 percent in 1980 and at
70 percent for the past five years (or the years 2003–2007).
218 para: message
I was being sarcastic about the equity of the political solution to savers,
borrowers, and the U.S. Government alike. Atack and Passell, Economic
View, 2nd ed., pp. 604–12 about the banking crises and passage of the
(first) Glass-Steagall Act in February 1932 that permitted government
bonds to be collateral for Federal Reserve notes in lieu of gold, p. 615,
table 21.3 for total open market purchases over various periods correlated
to the causal event, and pp. 612, 666 for the run on gold, Roosevelt's
declaration an immediate four-day banking holiday on 6 March, contin-
uing until the 15th (but should be the 13th given Feinstein et al. infra,
given Friedman & Schwartz infra, and given the contextual clause shown
next), ‘when about half of the nation's banks with about 90 percent of total
deposits were allowed to reopen,’ the confiscation of gold held by member
banks and delivered to the Fed and the Board's directive to get the names
and addresses of those who had withdrawn gold since February 1st, that
with other measures effectively ended the U.S. gold standard, formally
announced on 19 April 1933. 47 Stat. 56–7, for the act ‘To improve the
facilities of the Federal reserve system for the service of commerce
industry, and agriculture, to provide means for meeting the needs of
member banks in exceptional circumstances, and for other purposes.’,
a.k.a. the First Glass-Steagall Act, the Act of 27 February 1932, ch. 58
(72nd Congress, Public No. 44 or retroactively Public Law 72–44), p. 57
for permission from Congress until 3 March 1933 for the issue of ‘Federal
reserve notes’ against collateral in the form of ‘direct obligations of the
United States’, meaning U.S. government securities. Thorkelson, “Great
Depression," p. 345, col. 1 about the two-week national bank holiday
prescribed by Franklin D. Roosevelt in March 1933. 48 Stat. 1–7, for the
act ‘To provide relief in the existing national emergency in banking, and
for other purposes.’, the Act of 9 March 1933, ch. 1, pp. 1–2 for title I that
gave the President authority to confiscate gold, with the help of the U.S.
Treasury if authorized by the Treasury Secretary, and to seize information
about gold transactions (including information about other parties to such
transactions). Rauchway, Great Depression, p. 57 for roughly 1,000 banks
permanently shut down by reforms related to FDR's banking holiday, and
p. 59 about the Banking Act of 1933 that created temporarily the FDIC,
later made permanent (but it was the only the temporary FDIC scheme that
was made permanent) and disliked initially by FDR, and that required the
division of banks with public depositors from banks with investments on
Wall Street.
Initially, the law for the FDIC was section 12B of the Federal Reserve
Act (Act of 23 December 1913, ch. 6, 38 Stat. 251–275) as added by
Glass-Steagall. Subsections (a)–(x) of section 12B specify a permanent
scheme based on class A and B stock in a style typical of American
banking and the Federal Reserve System. This permanent arrangement
was scheduled to take effect immediately after 1 July 1934, or an earlier
date if specified by the President, and to cease to insure banks not
members of the Federal Reserve System after 1 July 1936. The little
banks, and their depositors, would thus have been excluded after 1 July
1936 because there was a minimal capitalization requirement as noted by
the very last paragraph of section 12 (48 Stat. 180). The insured banks
were to purchase and invest an amount of class A stock determined by the
deposits they each held because it was collateral in case of the bank's
bankruptcy. The last subsection of section 12B, subsection (y), specified a
temporary scheme, to end after 1 July 1934 regardless, for transition to the
permanent scheme. In the temporary scheme banks maintained a payment
with the FDIC based on deposits it held but not based on stock. The
payment was in part a nonrefundable fee and the remainder was collateral.
The permanent scheme insured depositors some portion of their total
deposits like a regressive income tax takes some portion, and without a
cap. The temporary scheme guaranteed 100% up to $2,500 (48 Stat. 179),
which was the lesser guarantee. Congress and FDR extended the tempo-
rary scheme until 1 July 1935 (48 Stat. 969–971) and then until 31 August
1935 (49 Stat. 435). The cap on insured deposits was raised generally to
$5,000 with the extension to 1 July 1935. Finally, the temporary scheme
was made permanent on 23 August 1935 by the Banking Act of 1935 (49
Stat. 684–723 at 694).
Feinstein et al., World Economy, p. 108 for Roosevelt's controls on
banking and gold allowing the elimination of (domestic) ‘speculative dise-
quilibrium’ during devaluation of the dollar, loosed in April 1933 (true
enough) by the Thomas Amendment of the Agricultural Adjustment Act
(not exactly true since the act was signed on 12 May 1933, clarified
shortly) and falling steadily until July, and for one-third of the world's gold
reserve held in the United States at the time, p. 57 for banks first reopening
on March 13th, and the recovery process finally allowing, approximately,
half of the banks to reopen without qualification, a quarter to reopen with
limits on withdrawals, a fifth requiring reorganization, and a remainder of
a thousand or so shut down entirely, and pp. 49–50 for the neutralization
(hoarding) of gold by France 1928–1932 and the United States during the
1920s. Friedman and Schwartz, Monetary History, pp. 299, 328, 421–2,
425 about the banking holiday, initially four days but extended by
Roosevelt with authority granted by Congress and ended in stages with
member banks of the Federal Reserve System and State-licensed banks
opening on the 13th, other banks in some 250 cities with recognized clear-
inghouse credentials on the 14th, and the remainder deemed worthy on the
15th of March, pp. 464–71 for the announcement of FDR on 19 April 1933
that ended the stability of the dollar price of gold, and the subsequent
depreciation, with respect to foreign currencies and gold, until FDR set an
exchange rate of $35 per ounce of gold, pp. 283–4, 314 for the gold steril-
ization (hoarding) by the United States and France that broke the interna-
tional gold standard (the international medium of exchange that it was) at
the start of the Great Depression, and p. 463 and p. 470, fnote 51 for the
gold standard set to $20.67 an ounce. Eichengreen, Golden Fetters, pp.
329–30 for the restoration of the dollar's strength from the end of the
national bank holiday in mid-May until mid-April 1933, achieved at least
largely by FDR's use of authority from an act of 9 March 1933 (ch. 1) that
he had pushed through Congress and for the public interpretation that the
measures were temporary restrictions to protect gold convertibility, and pp.
330–2 for the decline of the dollar started at mid-April as FDR's intentions
to devalue became known and continuing after he ‘took the dollar off gold’
on 19 April 1933.
Franklin Delano Roosevelt, The Public Papers and Addresses of
Franklin D. Roosevelt: With a Special Introduction and Explanatory Notes
by President Roosevelt, in 5 volumes (subsequently part of an enlarged 13
volume series by concatenation with two other publishers), Volume 2, The
Year of Crisis, 1933, ed. Samuel I. Rosenman (New York: Random House,
1938), pp. 137–41 for excerpts from Roosevelt's press conference of 19
April 1933, and pp. 141–4 for the text of related Executive Order 6111,
dated 20 April 1933, and commentary by FDR. The aforementioned
source is the prototype for the U.S. Government's Public Papers of the
Presidents of the United States similarly documenting many other presi-
dents, made freely available by the U.S. Government through federal
depository libraries, and described on the Government Printing Office
website. Fearon, War, Prosperity and Depression, pp. 84, 133–5 for the
United States and France having the bulk of the world's gold in the late
1920s, the untenable position of debtor nations unable to acquire that gold,
either by more loans or exports, and the collapse of the world economy.
48 (Part 1) Stat. 162–195, for the Banking Act of 1933, a.k.a. the (Second)
Glass-Steagall Act, the Act of 16 June 1933, ch. 89 (73rd Congress, Public
No. 66 or retroactively Public Law 73–66), pp. 168–180 for the creation of
the FDIC, and pp. 188–9 for the critical separation of speculation in stock
and other securities from depositors' deposits. 113 Stat. 1338–1481 for
Gramm-Leach-Bliley Act, Public Law 106–102, pp. 1341 for repeal of
Section 20 of the Banking Act of 1933, known as the (Second) Glass-Stea-
gall Act, p. 1384 for the effective date of 120 days after the enactment of
12 November 1999, figuring as 11 March 2000, and p. 1481 for the Presi-
dential approval of the act into law meaning he signed it. The last
sentence is of the form currently required of campaign ads; I say so
because 100 years since now someone wants to know that.
220 para: economy
Hetzel, Monetary Policy, pp. 32–3 about the development, beginning in
1923, of a Fed monetary procedure having open market operations in a
primary role and discount window operations in a secondary role, pp. 25,
27 about the stigma of using the discount window (a consequence of the
Fed's procedure that in a tightening phase shakes out the banks with
weakest reserve positions first) and banks padding their reserves volun-
tarily for their respective banking emergencies, p. 25 about the loss of
control around May 1933, pp. 21–2 about Fed (neoclassical) orthodoxy at
the dawn of the Great Depression, pp. 27, 30 for the resultant Fed determi-
nation to reduce the money supply, p. 30 for the Fed's need to hold onto
their government securities for income, pp. 23, 312 for the use of open
market transactions (in a sparingly expansionary way that would acquire
income-generating assets) after March 1933 to accommodate demand for
currency caused by bank runs, and pp. 30, 312 for the Fed's abortive defla-
tionary monetary policy 1936–1937 based on increasing reserve require-
ments. Sidney Pollard, ed., Wealth & Poverty: An Economic History of
the Twentieth Century (Oxford: Oxford University Press, 1990), pp. 14,
col. 1 for the dominance of neoclassical economists at the arrival of the
1930s.
Found via Rauchway, Great Depression, p. 115 and p. 124, enote 31
was Patrick Renshaw, “Was there a Keynesian Economy in the USA
between 1933 and 1945?”, Journal of Contemporary History, Vol. 34, No.
3 (July 1999), pp. 340, 343 about the Pittsburgh pledge. Roosevelt,
Papers of FDR, Volume 1, The Genesis of the New Deal, 1928–1932, ed.
Rosenman (New York: Random House, 1938), pp. 795–811 for the tran-
script of a speech by FDR given 19 October 1932 in Pittsburgh, PA, p. 810
for FDR's commitment to balance the budget except to relief starvation or
dire need, and pp. 811–2 for FDR's note explaining that a plank of the
Democratic platform of 1932 was to cut 25 percent of the cost of federal
government and that he held to a fiscally conservative policy at the start of
his presidency—after President Washington all presidents have had to be
great politicians to be so-called great presidents.
Susan Previant Lee and Peter Passell, A New Economic View of Amer-
ican History (New York: W. W. Norton & Company, c1979), p. 385 for the
marginally expansionary policy during the Roosevelt presidency, p. 384
for the analysis of E. Carl Brown written in 1956 that buried the myth of
Roosevelt as the first American Keynesian (meaning the first president to
heroically spend while creating large government budget deficits for the
sake of American workers), p. 386, table 16.10 for useful data to follow
the explanation of Brown's analysis, p. 388 about FDR's behavior
suggesting that he believed the country could not spend its way out of the
Great Depression and the emphasis of his administration's policies on
structural reform, and p. 389 for the assertion that FDR's fiscal policy did
not save anything and the problematic legacy of his reforms enumerated
as: “minimum wages that eliminate jobs for unskilled workers, farm price
supports that discourage production, pork barrel public works, expensive
and inefficient regulation of private business.” Atack and Passell,
Economic View, 2nd ed., p. 637 for the marginally expansionary policy
during the Roosevelt presidency, p. 639 for Hoover as a tad more Keyne-
sian than FDR, and so comparable, p. 635 for the analysis of E. Carl
Brown written in 1956 that buried the myth of Roosevelt as the first Amer-
ican Keynesian, pp. 641–2 about FDR's behavior suggesting that he
believed the country could not spend its way out of the Great Depression
and the emphasis of his administration's policies on structural reform.
220 para: American
I distinguish between the market stability of a dynamic banking system
good for depositors from the stability of individual banks good for bank
profiteering by ‘banksters’. Lee and Passell, Economic View, 1st ed., p.
384 about capital disintermediation (breakdown of the coordination
between savers and business borrowers) caused by distrust of banks and
the stock market, and by bankruptcy, and pp. 384, 388–9 about the delete-
rious policies of the Roosevelt administration that must have worsened the
Great Depression, and p. 389 about the uselessness of FDR's fiscal policy
and the ongoing affliction that is FDR's legacy of structural changes to
political economy. Klein, Rainbow's End, p. 242 about Secretary Mellon's
economic diagnosis, and pp. 242, 245 about the novelty of the idea that
government should assuage economic difficulties during the Hoover
administration and Hoover's efforts to do so. Rauchway, Great Depres-
sion, pp. 87–8, 102 for the never-before courted constituency empowering
FDR's presidency and their growing hunger for more benefits provided by
government means.
221 Hoover
“Progressive Movement,” EA–99, vol. 22, p. 645, col. 1 for allusion to
the three books by Tarbell, Steffens, and Sinclair as important to progres-
sivism and for the purpose of state income tax, progenitor of the Progres-
sive Movement's federal income tax, to distribute the tax burden more
‘effectively’, and p. 645, col. 2 for the end of the movement because of
World War I. Book citations determined from information accessed from
the website of the Library of Congress on 23 June 2008 and more liberal
capitalization. Earl Lee, foreword of Upton Sinclair, The Jungle: The
Uncensored Original Edition (Tucson, AZ: See Sharp Press, 2003) p. ii

about Sinclair's revision of his work for book publication to include the
elimination of graphic language, p. vi for the shift in emphasis from the
sufferings of workers to the poor quality of meat products, and Kathleen
De Grave, introduction of the same, pp. vii–viii for the content of the orig-
inal work detailing the excesses of capitalism and the humanity of the
exploited workers. Lewis L. Gould, The Presidency of Theodore
Roosevelt (Lawrence, KS: University Press of Kansas, 1991), p. 155 about
the public influence of Tarball and Steffens, p. 167 about Sinclair's influ-
ence on the public and President, pp. 157, 164 about the regulation of rail-
road commerce, pp. 167–9 about the regulation of food safety including
meat products, pp. 212–8, 279 about the use of litigation and administra-
tive oversight by the U.S. executive to challenge monopolistic business
practices and President Theodore Roosevelt changing his preference from
the former to the latter, and pp. 106–8 for the creation in 1903 of the
Department of Commerce and Labor. The first meat inspection regula-
tions, due to Sinclair's book, were within the section entitled “BUREAU OF
ANIMAL INDUSTRY” at 34 Stat. 672–679 of the Act of 30 June 1906, ch. 3913,
34 Stat. 669–697, with long title: “An Act Making appropriations for the
Department of Agriculture for the fiscal year ending June thirtieth, nine-
teen hundred and seven.” A nearly identical section with the same title, at
34 Stat. 1258–1265 was appropriated for the same department in the next
fiscal year by the Act of 4 March 1907, ch. 2907, 34 Stat. 1256–1282.
That Act of 4 March 1907, as amended, is now codified as Title 21,
Chapter 12, “Meat Inspection.”
J. C. Bancroft Davis, Reporter, United States Reports, Vol. 157, “Cases
Adjudged in the Supreme Court at October Term, 1894,” p. 429—authori-
tatively cited as 157 U.S. 429—for the first page of the entry for Pollock v.
Farmers' Loan and Trust Company, argued within the period 7–13 March
1895 and decided 8 April 1895, and the Supreme Court's determination
that federal taxation of income from real estate was a direct tax as
construed by the U.S. Constitution, pp. 429–30 for the split decision and
no opinion of the Supreme Court on the constitutionality of the income tax
specified by 28 Stat. 509, and p. iii for the Court's nine judges but with Mr.
Justice Jackson hearing none of the volume's reported cases after 23
October 1894 due to illness, which means the split was 4–4, but this is
ridiculous because if at that time a federal tax was direct and not propor-
tional according to the U.S. Constitution, article 1, section 9, clause 4 it
must have been unconstitutional. J. C. Bancroft Davis, Reporter, United
States Reports, Vol. 158, “Cases Adjudged in the Supreme Court at
October Term, 1894,” p. 601—authoritatively cited as 158 U.S. 601—for
the rehearing of Pollock v. Farmers' Loan and Trust Company, combined
with a rehearing of Hyde v. Continental Trust Company, argued 6–8 May
1895 and decided 20 May 1895, and the ruling that sections 27–37 of the
act of 1894 in question (28 Stat. 509–570), that is the entire scheme of
taxation, were unconstitutional, pp. 602–5 for the petition by Charles
Pollock and Lewis H. Hyde that led to the rehearing and a workable deter-
mination of government tax policy, and p. iii for the fact that Mr. Justice
Jackson heard none of the volume's reported cases after 23 October 1894
except Pollock v. Farmers' Loan & Trust Company, despite his illness.
The two court cases found via Edwin R. A. Seligman, The Income Tax: A
Study of the History, Theory, and Practice of Income Taxation at Home
and Abroad, 2nd ed., with a new chapter (New York: The MacMillian
Company, 1921, following 2nd ed. of May 1914), pp. 576–9, with header
of section 9 for the year 1895, for two Pollock ‘cases’ (actually two hear-
ings, the reports of each using docket number 893 for Pollock and 894 for
Hyde) before the Supreme Court rendering income tax unconstitutional, p.
598, fnote 5 for reference to ‘157 U.S., 429.’ and p. 583, fnote 1 for refer-
ence to ‘158 U.S., p. 671’. Atack and Passell, Economic View, 2nd ed., p.
576 citing Andrew Mellon, Taxation: The People's Business (New York:
Macmillan, 1924), p. 17 and Harvey O'Connor, Mellon's Millions: The
Biography of a Fortune (New York: John Day, 1933), p. 131 for Mellon's
argument that lower taxes on rich will allow more and more successful
collection, p. 652, figure 23.1 for the fact of a sharp increase circa 1929 of
federal government expenditures as a percentage of GNP, p. 601 for
Hoover's expansionary fiscal policy in response to the Great Depression, p.
639 for the similarly stimulative federal spending of Hoover and FDR, p.
584 for the hot debate and dearth of agreement over the reasons for the
onset and end of the Great Depression. Stephen C. R. Munday, Current
Developments in Economics (New York: St. Martin's Press, 1996), pp.
126–7 for the dialectic observation by (Arthur B.) Laffer, and used for his
Laffer curve, that the tax rates of 0% and 100% result in no revenue, but a
symmetric curve with revenue peaking at a 50% rate is but one possibility.
Arthur S. Link, “Wilson, (Thomas) Woodrow,” EA–99, vol. 29, p. 8, col. 1
and p. 9, col. 1 for Wilson's success with tariff reductions, a heavy income
tax on the rich, antitrust reform, and child labor law. Thomas M. Coffey,
“Prohibition,” EA–99, vol. 22, p. 647, col. 2 for the increased health risks
due to the reduced quality of bootleg liquor, some more than others, and p.
648, col. 2 for increased lawlessness, drinking, and alcohol abuse, and the
systematizing of political corruption and organized crime.
222 para: sovereignty
James T. Patterson, “New Deal,” EA–99, vol. 20, p. 170, col. 2 and p.
171, col. 1 for the political legacy of the New Deal having changed the
operational philosophy of federal government, and having recast and
rekindled the Democratic party, though the New Deal itself was of dubious
economic value. Rauchway, Great Depression, p. 105 for Roosevelt's crit-
icism of Hoover's deficit spending during the 1932 campaign, p. 85 for
(Congressional) policies spawned by the New Deal and lasting well
beyond the Great Depression, p. 112 for the national majority Roosevelt
built in 1936 and lasted for roughly 30 years, p. 105 for FDR not
campaigning as a tribune of the people in 1932 and not presiding as one
thereafter (the author must mean ‘immediately’ thereafter, compare with:
p. 106 for Roosevelt's conservatism and in 1936 his challenge to elitism,
pp. 111–2 for an excerpt of a speech given by FDR on Halloween, 1936
where he seems to be campaigning as a tribune, pp. 112–3 for Roosevelt
winning in a landslide as the self-declared champion of the downtrodden
and making a clear distinction between the New Deal and the Democratic
Party and p. 117 for Roosevelt able to present himself as a champion of the
people). Sol Cohen, “Progressive Education,” EA–99, vol. 22, p. 643, col.
2 for the progressive education movement being within the progressive

movement, and the repudiation of intellectual development for emphasis
on social adjustment and communal functions, and p. 644, col. 1 for the
elimination of the possibility of failure with the minimization of academic
standards, the intent that schools should assume responsibility for the
emotional and personality development of children, the high prevalence of
poor thinkers among the partisans of progressive education, and the launch
of Sputnik I in 1957 fostering a deluge of criticism of progressive educa-
tion.
223 para: left
Atack and Passell, Economic View, 2nd ed., p. 584 for the hot debate
and dearth of agreement over the reasons for the onset and end of the
Great Depression, p. 671 for Congress abrogating gold clauses in all
contracts and making all debts except the intergovernmental ones payable
in current legal tender on 5 June 1933 (when FDR signed the resolution
concerned), pp. 617–8, 630 and p. 587, figure 21.4 and p. 628, figure 22.2
for the beginning of the recovery roughly with Roosevelt's inauguration
(and banking reform) and the worst of unemployment and the dearth of
GNP having passed with year 1933, pp. 630–1 for the opinion of Milton
Friedman and Anna Schwartz that the rapid (initial) recovery after March
1933 was due to the inflow of gold stimulated by the weaker dollar, p. 626
for the end of the Great Depression only after the attack on Pearl Harbor in
1941, pp. 611–2 for the declining confidence among Americans of the U.S.
Government's commitment to continue the voluntary, pegged exchange
between dollars and gold as early as September 1931 when the British
abandoned the gold standard, reinforced by the (First) Glass-Steagal Act
that was passed February 1932 and allowed Federal Reserve notes to be
backed by government bonds, and President-elect Roosevelt's unwilling-
ness to commit to the gold standard, and p. 612 for the determination by
the Board of the New York Reserve Bank on 3 March 1933 that it could
not much longer continue to pay out gold and (paper) currency as it was,
the addition of New York State to the States observing a bank holiday on
Saturday, 4 March 1933, inauguration day, and the suspension of nation-
wide banking operations by FDR on the morning of Monday, 6 March
1933. 48 (Part 1) Stat. 112–3, for the Joint Resolution To assure uniform
value to the coins and currencies of the United States, the Resolution of 5
June 1933, ch. 48, p. 113 for the abrogation of every gold-payment provi-
sion of every obligation, approved (signed by FDR) on 5 June 1933 at 4:40
p.m.
Susan Dentzer et al., “Bitter Harvest,” Newsweek, Vol. 105, No. 7 (18
February 1985), p. 55, col. 2 for technology increasing farm output (on
average at least) 5 percent annually since the 1920s, pp. 52–60 for the
mass bankruptcy of U.S. farmers who were forced to leave the farming in
the early and mid 1980s after engaging in a speculative farmland boom of
the inflationary 1970s, and p. 60, col. 3 for the term ‘agricultural funda-
mentalism’ coined by James Cothern and the expectation that the future
will support fewer farmers. James T. Patterson, “New Deal,” EA–99, vol.
20, p. 169, col. 1 for the New Deal as opportunistic and experimental, and
not theoretical. Lee and Passell, Economic View, 1st ed., p. 384 for the
observation of how little the standard historical accounts fault the U.S.
Government for the long, painful recovery. Rauchway, Great Depression,
pp. 47, 75 about adamant and contentious farmers facing bankruptcy, pp.
about tariffs benefiting manufactures but not farmers, p. 35 for Roosevelt's
win in November 1932 over the incumbent President Hoover, pp. 61–2 for
Roosevelt's devaluing of the dollar in 1933, and pp. 78–9 for the destruc-
tion of cotton in the field and millions of piglets. Jonathan Alter, The
Defining Moment: FDR's Hundred Days and the Triumph of Hope (New
York: Simon & Schuster, c2006), p. 149 about intimidations, assaults, and
murder of people in farm country and involved in the liquidation of
bankrupted farms, pp. 279–80 about the serious threat of rebellion in the
farm belt, pp. 280–1 about Roosevelt's deference to farming interests
resulting in the domestic allotment system that paid farmers to not produce
wheat, corn, rice, cotton, tobacco, dairy, and hog products, and p. 280, lone
footnote for the wasteful destruction of 5 million hogs in September 1933.
Feinstein et al., World Economy, p. 107 for talk of President-elect
Roosevelt's consideration of devaluation of the dollar becoming ‘more
tangible’ in February 1933 and leading to a run on the dollar, and p. 108
about the United States being a perennial net exporter and holding one-
third of the world's gold reserves and the appeal of the New York Federal
Reserve Bank to Roosevelt for the shut down of the nation's entire banking
system to force cooperation from the other Federal Reserve Banks.
Eichengreen, Golden Fetters, p. 325 for the chief factor to have force the
national holiday having been the incapacity of the New York Federal
Reserve Bank to rediscount bills and provide member banks, on Wall
Street, loans of any kind. John Maynard Keynes, The General Theory of
Employment, Interest, and Money (Amherst, New York: Prometheus
Books, 1997), p. 332, at the end of chapter 22, for the prose of Keynes:
‘The “New Deal” partly consisted in a strenuous attempt to reduce these
stocks—by curtailment of current output and in all sorts of ways. The
reduction of stocks to a normal level was a necessary process—a phase
which had to be endured.’
224 para: good
Pollard, Wealth & Poverty, pp. 14, 17 for the dominance of neoclassical
economists with the arrival of the 1930s, a nice explanation of Keynes
General Theory, and the impossibility under the theory of simultaneous
unemployment and inflation. Hetzel, Monetary Policy, pp. 34–5 for
Keynes' General Theory having the idea that the Great Depression was
rooted in a failure of the price system, and p. 3 for the Keynesian concept
of the negative output gap defined as actual output minus potential output.
Spiegel, Economic Thought, (c1983), p. 613 for Keynes' intent with
General Theory to solve the great economic crisis of his day not future
problems. It is worth noting that although Keynes directed his theory at
less than full employment and the inequitable distribution of wealth and
income, what he identified as the outstanding economic faults his Western
society, he considered his general theory to be, yes, general and the day's
classical theory to be a special case thereof distinguished by full employ-
ment, so he must have considered his theory a permanent advance over
classical economics. Keynes, General Theory, pp. 118–9, in chapter 2 at
the end of (section) 2, for increasing employment accompanied by rising

prices themselves associated with increasing aggregate real income, p.
301, in chapter 21, (sections) 4–5, about the increase of ‘effective demand’
causing an increase of the employment rate distinguished by an increase of
wages proportionally less than that of the price of goods during the transi-
tion of the employment rate through certain ‘semi-critical points’ below
full employment, the phenomenon being semi-inflation or the incom-
pletely countering inflation of wages having a weak analogy to true infla-
tion distinguished by no increase in output and fully proportional increases
(I far as I can tell) between wages and the price of goods, p. 304 for
Keynes' flippancy for the classical view of inflation as the mere rise in
prices, p. 3, i.e. chapter 1, and pp. 378–9, in chapter 24, (section) 3, about
Keynes' regard for classical economic theory as a special case of his
general theory, and p. 372, chapter 24 at the very start, for Keynes' criti-
cism of and general theory solution for inequitable economic distribution.
224 para: America
Atack and Passell, Economic View, 2nd ed., p. 626 for the Great
Depression not ending until after the Japanese attack on Pearl Harbor.
Hetzel, Monetary Policy, pp. 34–5, 57 for the Keynesian interpretations of
the Great Depression and the Second World War, pp. 49, 51 for policy-
makers ceasing to view recessions as inevitable outcomes of speculation
and the new consensus (policymakers must have adopted) that government
had responsibility for aggregate demand (and the economy), p. 35 for the
pegging of interest rates in April 1942 and mention of the monetarist-
Keynesian debate that would come sometime after World War II, pp. 37,
40 for the incremental increases to the pegged rate of the 3-month treasury
bill, pp. 45, 49, 51 for removal of pegged interest rates in March 1951 and
the resumption of a regular Fed monetary policy from the discontinuance
of early 1933, one that for the first time was to control inflation using lean-
against-the-wind policy (basically monetarism), and pp. xv–xvi for a short
description of lean-against-the-wind. Spiegel, Economic Thought,
(c1983), p. 668 for the mainstream of economic though consisting
precisely of monetarism and variants of Keynesianism. Pollard, Wealth &
Poverty, p. 14, col. 1 for the debate between Keynesians and monetarists
in ‘recent decades’ (meaning the 1970s and 1980s and perhaps earlier) as
the ‘most difficult’ in regard to economic policy issues of capitalist
(Western) countries.
225 para: money
Hetzel, Monetary Policy, pp. 3, 315 for the predominance of Keynesian
economics begun with the Kennedy and Johnson administrations, pp. 3, 85
for the money expansion and price controls under Nixon, something
Johnson had done, p. 315 for the contradiction of the original Keynesian
prediction that unemployment must be low with high inflation by the
stagflation of the 1970s and the failure of the Keynesian diagnosis for
stagflation of price controls, pp. 77, 79, 119, 315 and p. 329, endnote 1 for
the adoption of cost-push inflation and price controls by Keynesians 1969–
1970 as the solution to stagflation, p. 92 for shortages with Nixon's price
controls, p. 109 for the new Ford administration saddled with stagflation,
p. 43, figure 4.4, and p. 62, figure 6.1 for statistical evidence to discern
stagflation in the 1970s, pp. 60–1 for the development and remedial indi-
cation of the concept cost-push inflation, and p. 94 for blame of inflation
on OPEC, p. 150 for Volcker's defiance of Keynesian convention and
appointment (induction not nomination) as Fed chairman on 6 August
1979 (during the Carter administration), p. 151 for Volcker's commitment
to lowering inflation by raising interest rates as high as necessary, p. 178
and p. 174, figure 14.1 for the taming of inflation, and p. 315 for the
change in the goal of monetary policy from low unemployment to low
inflation with the installment of Paul Volcker. R. W. Hafer, The Federal
Reserve System: An Encyclopedia (Westport, Connecticut: Greenwood
Press, 2005), appendix B, pp. 425, 437 for Paul A. Volcker's term as
chairman of the Federal Reserve Board of Governors from 6 August 1979
to 11 August 1987 and Alan Greenspan's term begun on 11 August 1987.
“Board of the Governors of the Federal Reserve System” Web page,
‘Fedpoint’ 46 it seems, accessed 16 July 2008 at http://www.newyorkfed.org
/aboutthefed/fedpoint/fed46.html, for Alan Greenspan's term as chairman
from 11 August 1987 to 31 January 2006 and the induction of his
successor Ben S. Bernanke on 1 February 2006. “Remarks by Chairman
Alan Greenspan” Web page, a transcript of Greenspan's speech given in
Washington, D.C. on 5 December 1996, for the making famous the phrase
‘irrational exuberance’. “Remarks by Governor Ben S. Bernanke” Web
page, a transcript Bernanke's speech given before the National Economists
Club in Washington, D.C. on 21 November 2002, accessed 28 October
2008 at http://www.federalreserve.gov/BOARDDOCS/SPEECHES/2002
/20021121/default.htm, for the helicopter remark: ‘A money-financed tax
cut is essentially equivalent to Milton Friedman's famous “helicopter drop”
of money.’ Ashley Seager, “‘Helicopter Ben’ and his 0% remedy for
Depression,” Guardian, 19 March 2008, the article in some form having
appeared on page 5 of the “Top Stories” section, last updated 13 May
2008, as accessed 28 October 2008 at http://www.guardian.co.uk/business
/2008/mar/19/useconomy.interestrates, for how the helicopter remark made
six years prior was seized upon by critics to dub him Helicopter Ben
(apparently before he became Chairman at the Fed).
225 para: endeavor
“Remarks by Chairman Alan Greenspan” Web page, a transcript of
Greenspan's speech given in Arlington, Virginia on 12 April 1997 at the
Annual Conference of the Association of Private Enterprise Education,
accessed 11 January 2007 at http://www.federalreserve.gov/boarddocs
/speeches/1997/19970412.htm, for the excerpt presented as a single para-
graph, the first sentence of which was taken from the end of one paragraph
in the source and the remainder taken from the whole of the subsequent
paragraph in the source.
227 para: feelings,
228 para: economy
Spiegel, Economic Thought, (c1983), p. 538 for Austrians as the last
defenders of laissez faire, and pp. 542–3 for laissez faire taken to the
extreme by Austrian school economist Ludwig von Mises such that he did
not concede to government any role in economic policy, including mone-

tary policy. Found in via the “Grover Cleveland” entry of the English
version of Wikipedia as accessed August 2008 was Grover Cleveland, The
Writings and Speeches of Grover Cleveland, ed. George F. Parker (New
York: Kraus Reprint Co., 1970), pp. 449–50 for the circumstances and
content of Cleveland's quote but not the bracketed portion added for clar-
ity. Thorkelson, “Great Depression,” p. 344, col. 1 for characterization of
the Great Depression as the longest and deepest setback that scared the
American economy. Patterson, “New Deal,” p. 170 for the concord
between the New Deal and corporate concentration. Rauchway, Great
Depression, pp. 83–4 for early New Deal policy, as implemented by the
NRA (National Recovery Administration), favoring business interests, pp.
93–6 for the struggle between capitalist and laborers and the federal
government shifting toward the side of labor, pp. 108, 116 for (new)
concessions to labor difficultly won. Atack and Passell, Economic View,
2nd ed., p. 587, figure 21.4 and p. 628, figure 22.2 for U.S. unemployment
during the Great Depression, and p. 586, figure 21.3 and p. 631, figure
22.3 for America's real gross national product (GNP) during the Great
Depression.
228 para: conditions
The quoted replacement text from the Federal Reserve Reform Act of
1977 is found at 91 Stat. 1387.
229 para: ends
92 Stat. 1887–1908, for the Full Employment and Balanced Growth Act
of 1978, Public Law 95–523, p. 1897, sec. 108 for the striking out of the
second and third sentences and most of the insert.
229 para: plans
92 Stat. 1887–1908, for the Full Employment and Balanced Growth Act
of 1978, Public Law 95–523, pp. 1897–8 for the quoted final portion of
replacement text.
229 para: problem
Full Employment and Balanced Growth Act of 1978 in section 109 with
the heading “OVERCOMING INFLATION”, at 92 Stat. 1898, inserts into the
Employment Act of 1946 a section also with the heading “OVERCOMING
INFLATION” and with instructions for the President. American Homeowner-
ship and Economic Opportunity Act of 2000 in section 1003, at 114 Stat.
3028–9, amends the Federal Reserve Act as described.
231 para: menagerie
Spiegel, Economic Thought, (c1983), p. 671 about the supply-side tax
policy under the Reagan administration primarily benefiting upper-income
groups and the support of supply-side economics coming from politicians
and journalists more than professional economists. 26 U.S.C. 3101 for the
Social Security tax on employees, 26 U.S.C. 3111 for the Social Security
tax on employees via taxation on employers, and 26 U.S.C. 3121(a)(1)—
this paragraph reads like a dream, if you're dreaming your life is in danger
—for the cap on wages so taxed per section 230 of the Social Security Act,
a section created by amendment (cf. 42 U.S.C. 430 Notes). The taxable

wages cap happens to be $97,500 for wages from calendar year 2007:
ergo, the Social Security tax is a tax aimed at the less affluent workers
(who perennially need help long after the Great Depression), with roughly
half unobserved in the itemized deductions on your paycheck slip, a mere
6.2 (+ 6.2) = 12.4 percent on wages earned after 1989. Throw in the
hospital insurance tax for Medicare/Medicaid of 1.45 (+ 1.45) = 2.9
percent , the regular income tax of say from 10 to 20 percent of nominal
earnings (plus a hidden tax to cover corporate income taxes), the federal
gas tax (with some hidden ethanol overhead), the hundreds-of-thousands-
of-foreign-workers-are-here-legally tax (plus the millions-more-here-ille-
gally tax), and the incalculable inflation tax on your depreciated wages and
savings: the federal government tax rate alone is minimally a quarter of
true earnings and quite plausibly over half. Now feed the state and local
governments, and it seems that without government largess you are a
financial tool and that with government largess you are a ghoulish oaf, a
cultural tool if not a loveless elitist. The menagerie at the federal level is
enumerated for fiscal year 2005 per the U.S. Budget supra within the
endnote labeled ‘130 para: Boom’ on page 551.
Chapter 6: Infection of Solutions

233 epi: pot
Michael Feldberg, The Philadelphia Riots of 1844: A Study of Ethnic
Conflict (Westport, Connecticut: Greenwood Press, c1975), p. 79 for the
epigraph, in the source the start of a longer sentence but here truncated,
given a period, and made a stand-alone sentence. Who's Who in the East,
1995–1996, 25th ed. (New Providence, NJ: Marquis Who's Who, c1994),
p. 370, col. 2 for the role descriptor ‘cultural organization administrator’.
235 epi: STRENGTH
Slogans are by Eric Arthur Blair, first published and well featured in
Nineteen Eighty-Four (1949) under the pen name George Orwell.
235 para: record
“President Bush Addresses the Nation on Immigration Reform,” news
release of same-day televised address from the Oval Office, Office of the
Press Secretary, The White House, 15 May 2006, accessed 16 May 2006
via http://www.whitehouse.gov, for the excerpt of President Bush.
235 para: parent, day
“Transcript of Nagin's speech: New Orleans Mayor Ray Nagin gave this
speech Monday during a program at City Hall commemorating Martin
Luther King Jr.,” Times-Picayune, online version, dated 17 January 2006,
accessed 24 July 2006 at http://www.nola.com/news/t-p/frontpage
/index.ssf?/news/t-p/stories/011706_nagin_transcript.html, citing WWL
Radio, for the except of a speech by Mayor Ray Nagin delivered on Martin
Luther King Day, 16 January 2006, but a comma has additionally been
inserted after the last ‘hurricane’.
236 para: idea, illegally, people

“Hatch: No Blanket Amnesty for Illegal Immigrants,” news release of
same-day speech on floor of the Senate, Office of U.S. Senator Orrin
Hatch, online version, dated 25 May 2006, accessed 24 July 2006 at
http://hatch.senate.gov/index.cfm?FuseAction=PressReleases.Detail&Pres
sRelease_id=1578, for the excerpt of Senator Hatch.
237 epi: Blessedness
Thomas Carlyle, Sartor Resartus (1833–4 serial, 1836, 1846, &c. ),
Book II, just beyond midway in chapter 9, “The Everlasting Yea” for the
epigraph, made a stand-alone sentence with capitalization of ‘there’. The
1833–4 serial version of the quote is in Fraser's Magazine For Town and
Country, Vol. 9, No. 52 (April 1834), p. 451, col. 1, top:
“Es leuchtet mir ein, I see a glimpse of it!” cries he elsewhere: “there
is in man a HIGHER than Love of Happiness: he can do without
Happiness, and instead thereof find Blessedness! *x*x*”
The ‘blessedness’ quote in some form was popular among Americans of
the mid and late 19th century.
237 epi: character
George W. Bush, Second Inaugural Speech, 20 January 2005 for the
epigraph.
238 para: world
Senator James Jeffords of Vermont was elected Republican in 2000 but
became an independent affiliated with Senate Democrats. Jeffords did not
seek re-election in 2006. Bernie Sanders (I-Vermont, At Large) is a true
independent having been elected as such, but he also had (at least in 2006)
an affinity with the Democratic Party. Sanders won Jefford's open Senate
seat in 2006. For the six national elections of 1990–2000, including
concurrent special elections for unexpired terms, the percentage of races
won by incumbents receiving at least 60% of the vote ranged from 18%–
56% in the Senate and 54%–74% in the House. The average and mean of
the six elections were 41% and 45% for the House and 65% and 66% for
the Senate. Supporting total race counts were developed from election
data provided by the website of the Office of the Clerk, U.S. House of
Representatives, accessed 30 July 2006 at http://clerk.house.gov/members
/electionInfo/elections.html. Supporting counts of incumbent-dominated
races, compiled by Michael J. Malbin, accessed 30 July 2006 from the
Campaign Finance Institute website at http://www.cfinst.org/studies/vital
/tables/3-3.htm and http://www.cfinst.org/studies/vital/tables/3-6.htm.
239 para: wealth
The count of 406 incumbent wins from 469 contests is based on
spending and incumbency data provided by the Center for Responsive
Politics via their website opensecrets.org on 31 July 2006. 116 Stat. 81–
116, for the Bipartisan Campaign Reform Act of 2002, Public Law 107–
155, p. 112 for the effective date of the act made 6 November 2002 and to
be incorporated into 2 U.S.C. 431 Notes. The count of 6 of 8 open seats is
based on net disbursements of the 2003–4 election cycle and indicated
open Senate seat races of the 2004 election as provided online by the
Federal Election Commission at www.fec.gov on 31 July 2006. Eileen J.
Canavan, Jason Bucelato, and James Landon Jones, “Federal Elections
2004: Election Results for the U.S. President, the U.S. Senate and the U.S.
House of Representatives,” U.S. Federal Election Commission, May 2005,
pp. 61 and 77 for the 2004 election count of 421 incumbent victories of
469 contests. Arthur B. Kennickell, Currents and Undercurrents:
Changes in the Distribution of Wealth, 1989–2004, SCF Working Paper,
The Federal Reserve Board, 30 January 2006, accessed circa 20 June 2006
via the SCF website or section at http://www.federalreserve.gov/pubs/oss
/oss2/scfindex.html, p. 11, table 5 for the richest five percent holding half
the wealth.
241 epi: now
Grant Foreman, Indian Removal: The Emigration of the Five Civilized
Tribes of Indians, 2nd ed. (Norman, Oklahoma: University of Oklahoma
Press, 1953), note the content and format of the fifth printing in March
1969 is identical to the first and so will work with the page references too,
p. 306 citing “A Native of Maine, traveling in the Western Country,” New
York Observer, 26 January 1839, p. 4 for the epigraph, but the bracketed
clarification has been added and the enclosing double quotes per the
source are not shown.
241 epi: screwed
Public statement of Governor Rendell in Scranton, PA on 21 July 2006.
One source was Roger Dupuis II, “Rendell sounds off on immigration
reform at city event,” Times-Tribune, online version, dated 21 July 2006.
242 para: millions
“Modern-Day Slavery” Web page, remarks of the Director of the Office
to Monitor and Combat Trafficking in Persons John R. Miller at the
Underground Railroad Freedom Center Dedication in Cincinnati, Ohio on
23 August 2004, accessed 28 December 2007 at http://www.state.gov/g/tip
/rls/rm/43617.htm, for the quote of Director Miller but modified to make
the word ‘our’ capitalized at the start of a sentence.
242 para: pleasure
Trafficking in Persons Report, June 2007, U.S. Department of State,
accessed circa 28 December 2007 from the State Department's website at
http://www.state.gov, p. 12, col. 1 about tier placement based on the extent
of government action rather than the size of the problem, pp. 10–1, 27 for
an explanation of the tier rating system, and pp. 14, col. 2 about the poten-
tial of U.S. sanctions for countries rated as tier 3.
243 tab: 6.1
Trafficking in Persons Report, June 2007, pp. 10–1, 27 for an explana-
tion of the tier rating system, and p. 42 for the list of Tier 3 countries. The
World Factbook 2007, Central Intellegence Agency, extracted from a Zip
file downloaded on 7 April 2008 from the download Web page at https://
www.cia.gov/library/publications/download/download-2007/index.html, the
Web page entry of each given country for the region and the dominant reli-
gious practice(s) specific to the culture of that country, in the cases of

North Korea and Cuba the religions practice(s) dominant before state
control—and I would argue not necessarily having less cultural signifi-
cance for it.
243 para: 1998,
244 para: idea
Global Report under the Follow-up to the ILO Declaration on Funda-
mental Principles and Rights at Work 2005, a report of the Director-
General, International Labour Office, Geneva, 2005, accessed 28
December 2007 at http://www.ilo.org/wcmsp5/groups/public/---dgreports/---
dcomm/documents/publication/kd00012.pdf, p. 1 for the quote but here
altered by removing a superscripted ‘1’ footnote tag, p. 13, col. 2 for the
numbers of forced laborers per 1,000 inhabitants, and p. 13, figure 1.3 for
application of the term ‘minimum’ to the numbers.
244 para: stay
Alfred W. Crosby, “United States: 23. Early Man in America,” Encyclo-
pedia Americana: International Edition, 1999 ed., vol. 27, p. 690, col. 2
about blankets, knives, guns, and kettles sharply elevating the living stan-
dards of Indians. The aforementioned source is abbreviated as EA–99.
Alice Beck Kehoe, North American Indians: A Comprehensive Account
(Englewood Cliffs, New Jersey: Prentice-Hall, Inc., c1981), p. 168, col. 1
about endemic warfare among the Indians of the American Southeast at the
time of first white contact in 1513 by Juan Ponce de León, p. 178 about the
Creeks who learned to play the English, French, and Spanish against each
other for their own purposes, p. 171, col. 1 about the looting of ossuary-
temples, and p. 168 for De Soto's trek in the North American Southwest
1539–1542. James H. Merrell, “Catawba,” Encyclopedia of North Amer-
ican Indians, ed. Frederick E. Hoxie (Boston: Houghton Mifflin Company,
c1996), p. 102, col. 2 about the Catawbas who were allies of the English in
the Seven Years' War. The aforementioned source shall be abbreviated as
ENAI. Mary Druke Becker, “Cayaga,” ENAI, p. 104, col. 2 about Cayuga
warriors who often joined the French during the Seven Years' War (1756–
63). Clara Sue Kidwell, “Choctaw,” ENAI, p. 119, col. 2 about a civil war
among the Choctaw over their choice of alliance between the French and
English.
245 para: not
Almon Wheeler Lauber, Indian Slavery in Colonial Times Within the
Present Limits of the United States (Williamstown, Massachusetts: Corner
House Publishers, 1979), p. 40 about foot and lower leg mutilations by
southern (U.S.) Indians to prevent escape, and (with citation to French,
Historical Collections of Louisiana, pt. i, p. 160) the conditioning method
of imposing the witness of torture and then cannibalism of a fellow tribal
members by enslaving Indians encountered by La Salle, p. 36 w/ fnote 4
about Huron and Ottawa Indian men having slave mistresses to the dismay
of Jesuits, pp. 46–7, fnote 1 about Indians of what would be the contiguous
48 States enslaving whites, and the eleven remaining chapters after chapter
1 about whites conversely enslaving Indians. Francis Parkman, France
and England in North America, vol. 1 of 2 spanning the 7 works originally
published piecemeal (New York: The Library of America, c1983), p. 573

(in book 2, The Jesuits in North America in the Seventeenth Century,
chapter 17) about the event in Canada of Iroquois hunting a band of Algo-
nquins, slaying and capturing them around midnight, the slain having been
immediately boiled and eaten before the prisoners, who were made to
march to the captors' home but not arriving with the infants who were
roasted alive on wooden spits and eaten in front of the mothers at a point
en route. Lauber, Indian Slavery was found via p. 38, col. 2 of the next
cited source Kilroe, “Amerindian Slavery, Southeast.” Patricia A. Kilroe,
“Amerindian Slavery, Southeast,” The Historical Encyclopedia of World
Slavery, Junius P. Rodriguez, ed., (Santa Barbara, California: ABC-CLIO,
c1997), vol. 1, p. 37, col. 2 and p. 38, col. 1 about calculated mutilation by
Indians of the American Southeast predating European influence and the
slave trade with Choctaws, Chickasaws, and Cherokee. The aforemen-
tioned source is abbreviated as HEWS. Patricia A. Kilroe, “Amerindian
Slavery, General,” HEWS, vol. 1, p. 35, col. 1 about adoption of southern
slavery by the Cherokee, Choctaw, Chickasaw, Creek, and Seminole,
known collectively as the Five Civilized Tribes. Sharon Roger Hepburn,
“Black Slaveowners,” HEWS, vol. 1, pp. 87, 89 about blacks owning
slaves in the South. Frank A. Salamone, “Africa,” HEWS, vol. 1, p. 14,
col. 2 about blacks selling blacks in Africa and becoming rich. “Indian
Nations of Texas” Web page http://www.tsl.state.tx.us/exhibits/indian/intro
/page2.html of the Texas State Library and Archives website accessed 31
July 2006, Chickasaw section for Chickasaw Indians owning black slaves
and siding with the Confederacy during the Civil War.
245 para: War
Kehoe, North American Indians, pp. 182–3 for Indians of the American
Southeast enrolled at white schools, adopting the white mode of living into
their own native societies, and having no intension of abandoning their
lands, and for the government ‘factories’, the government trading posts
used to induce Indian debt as a pretext to take their land, and p. 188 for the
prototypic use of concentration camps for the first removal, that of the
Choctaws, and the second of the Creeks. Allen Nevins, The Emergence of
Modern America, 1865-1878 (New York: The MacMillan Company,
c1927), p. 105 for a large half-breed population, whiskey, dissipation,
dislodgement, government-induced welfare dependency, and laziness, and
for the majority of Indians not assimilating. Found via Kilroe,
“Amerindian Slavery, Southeast,” p. 38, col. 2 was Theda Perdue,
“Slavery,” ENAI, p. 598, col. 1 for the Seminoles as an exception to the
southern Indians slavery practices. Melinda Micco, “Africa Americans
and American Indians,” ENAI, p. 7 for the enslavement of blacks by the
Five Civilized Tribes and the distinctly different treatment of associated
blacks by Seminoles. Foreman, Indian Removal, pp. 315, 325–6 about
benevolent bondage of blacks by Seminoles, unnumbered pp. 7–8, the first
two pages of the 3-page preface, for the resistance to westward removal by
the southern Indians (that were the Five Civilized Tribes) having been
greater than the resistance by weaker and more primitive tribes of the
North, and the advances in learning and culture of at least four of the (Five
Civilized) tribes having had established them permanently to the land with
homes, farms, mills, roads, etc. and most exceptionally, with representative
governments modeled on the State governments of whites, and the author's
clarification that Indians have suffered from whites not in a sectional way
that singles out Southerners but throughout the country (nevertheless, I
assert the maintenance of a slavery institution by and for whites, the power
structure, was a critical factor to this conflict like others involving the
South even though I have not found any definitive scholarship on the
subject), pp. 136–7 and p. 268, fnote 5 for public support of Indians in the
South, p. 21 for public support of Indians in the North, p. 157 for volun-
tary emigration by a small faction of Creeks in 1829 called ‘McIntosh’
Creeks with no mention of slaves, p. 128 for other Creeks with slaves
settling in March 1835 where the McIntosh Creeks had settled, though the
McIntosh Creeks had moved to better land by then, pp. 38–9 and p. 203,
fnote 35 for the first Choctaws leaving acceptingly 1830–1831 under the
leadership of Chief Greenwood Leflore, pp. 42, 44–7, 54, 71, 95, 102 for
the decisive period of Choctaw emigration 1831–1833 with the Choctaw
going acceptingly, pp. 203–6, 226 for the decisive removal of the Chick-
asaw 1837–1847 with the Chickasaw going acceptingly, pp. 287–8 for the
forceful gathering of uncooperative Cherokees at bayonet point in 1838 for
shipment west, pp. 290, 294, 301, 310–2 for the removal of Cherokees
rounded up by force 1838–1839, pp. 150–4, 179 for hostile Creeks hunted,
packed into a fort, and shipped West in 1836, pp. 179, 348 for Indian
warriors recruited by whites for the Second Seminole War, pp. 326–7,
381–2 for the forced migration of Seminoles and the related hostilities
1935–1942. Richard A. Sattler, “Seminole,” ENAI, p. 577, col. 1 for the
Second Seminole War (1835–1842) as the longest and costliest Indian war
in U.S. history. Eric Rauchway, The Great Depression & the New Deal: A
Very Short Introduction (New York: Oxford University Press, 2008), p. 24
citing John M. Barry, Rising Tide: The Great Mississippi Flood of 1927
and How It Changed America (New York: Simon and Schuster, 1997), p.
368 about the high regard as labor and the low regard as people held by
white Southern businessmen in 1927 for blacks in the South, a fact
exploited financially by future president Herbert Hoover.
246 para: War
Kehoe, North American Indians, p. 186, col. 2 for the Southeastern
Indians considering themselves to constitute nations by the first quarter of
the 19th century, p. 167, col. 1 for the Seminoles having formed as a tribe
in the historic (post-Columbian) period, pp. 186–90 for the first Five
Tribes' constitution by the Cherokees in 1827 before Indian removal west-
ward and the remaining Five Tribes after removal to Indian Territory.
Foreman, Indian Removal, pp. 7–8 (unnumbered pages of the preface)
about, in so many words, the sense of equal sovereignty held by at least
four of the Five Civilized Tribes, p. 315 for the formation of the Seminoles
from Creeks who arrived first circa 1700–1775, Hitchiti who perhaps were
among the early immigrants, and subsequently from Indian refuges to
include Creeks with slaves, and escaped slaves, and pp. 20–1 for Cherokee
adoption of a constitution modeled on the U.S. Constitution by delegates
who assembled on 4 July 1827, the expectations of social stability and
permanence it would afford, the reactionary renewal of removal efforts
indicated by legislative action by Georgia against the Cherokees, it seems

at some point within 1827–1830, by Mississippi against the Choctaws and
Chickasaws in January 1830, and by Alabama against the Creeks, and the
federal government's response to the Indians' petitions with efforts to
undermine their resistance to removal westward. Sattler, “Seminole,”
ENAI, p. 576 about the formation of the Seminoles but without the addi-
tion of Indian's slaves, and the autonomy of subgroups after the American
Revolution, and p. 577, col. 1 for the first unified Seminole government
created in 1825. Theda Perdue, “Slavery,” ENAI, p. 598, col. 1 for the
addition of Creeks, their slaves, and runaway slaves to Seminole society,
and p. 598, col. 2 for debt peonage and forced labor as a continuation of
slavery from the form terminated by the American Civil War that trapped
many Indians. Duane H. King, “Cherokee,” ENAI, p. 107, col. 1 about the
Oconaluftee Citizen Indians. Kidwell, “Choctaw,” ENAI, p. 120, col. 2
and p. 121, col. 1 about unlanded Choctaw Indians and the Treaty of
Dancing Rabbit Creek.
Nell Irvin Painter, revised by Robin D. G. Kelley, “Black Americans,”
EA–99, vol. 4, p. 28e, col. 1 about farm labor and debt peonage, and the
erection of Jim Crow segregation 1890–1910, and p. 28f, col. 1 about
southern blacks continuing to work as sharecroppers locked in debt
(slavery). C. Vann Woodward, The Strange Career of Jim Crow, a
commemorative ed. with new afterword, reprinting the 3rd revised ed., or
the 4th ed, first published in 1974 (New York: Oxford University Press,
c2002), p. 95 about the opinion of an academic from the University of
Virginia that blacks were unsurpassed as cheap labor and that their educa-
tion would be counterproductive, p. 98 for the segregation of black
workers to the lowest jobs, pp. 71–4 for the ascension of Southern segre-
gation in the 1890s, and pp. 17–8 about the development of segregation in
the antebellum North, but not with the force it would have in the South. In
the 2nd edition of Strange Career, revised and enlarged, first published in
1957, as it is in the 4th edition, and by extension presumably in the 3rd
edition, the first three topical references just made to the 4th edition are in
the chapter entitled “Capitulation to Racism” near the end of section 4,
about a third of the way into section 5, and over the rearward majority of
section 1, respectively, but the fourth and final reference, to segregation in
the North, is from a chapter entitled “Of Old Regimes and Reconstruc-
tions,” not in the 2nd edition. William S. McFeely, afterword in C. Vann
Woodward, Strange Career, 4th (c2002), pp. 231–2 for the speech by
Martin Luther King, Jr. in which he cites Woodward's Strange Career (an
earlier edition) as proof that segregation was a political tool for Southern
special interests to have the cheapest labor possible. Historical Statistics
of the United States, Colonial Times to 1970, bicentennial ed., part 1,
series A176, U.S. Bureau of the Census, accessed 7 May 2008 via the
portal at http://www.census.gov/prod/www/abs/statab.html, p. 22 for decen-
nial statistics of regional black population leading to calculated Southern
fractions ranging from a minimum of 87.8% to a maximum of 93.6% for
zero-ending years within 1790–1910, 85.2% in 1920, 78.7% in 1930,
77.0% in 1940, 68.0% in 1950, 59.9% in 1960, and 53.0% in 1970.
Nevins, Emergence, p. 105 for the integration of the Sioux in Minnesota.
247 para: say

Foreman, Indian Removal, pp. 109, 232–3 about Indian treaties gener-
ally not honored by government officials and the (Jackson) administration,
except the removal part, pp. 21, 123, 229, 239 and fnote 25 on pp. 235–6
for the biased application of State laws by governors and others who could
only have been subordinates to their respective governors, pp. 121, 229 for
State courts disallowing the testimony of Indians if involving the affairs of
whites, pp 123–4, 137, 248–9 about emboldened whites exploiting Indians.
Office of the Special Trustee for American Indians (OST), Restoring
Trust: The Reformation of Indian Trust Management (1994-2007), as
accessed on 11 September 2008 at http://www.doi.gov/ost/congressional
/restoring_trust.pdf, p. 5, col. 2 for the 56 million acres held in trust for
Amerinds by the Department of the Interior. Note that the electronic copy
of Restoring Trust was undated, but the footer of page 18 of the published
physical version indicates a publishing date of 2007.
247 para: accounts, community
OST, Restoring Trust, p. 6, col. 1 for the two quoted paragraphs, but the
bracketed clarification was added. Don't worry if you can't verify the
math: the first paragraph is constructed like a mutilated word problem.
248 para: Territory
Foreman, Indian Removal, pp. 229–30, 238 for the gold mine of the
Cherokees taken by the State of Georgia and the proclamation to that
effect by the State's governor issued 3 June 1830. U.S. House Journal,
24th Congress, 1st session (1835–36), 21 March 1836, p. 537 for the peti-
tion by Coge-e-coy-hee. Kehoe, North American Indians, p. 186 for
Indian plantation gentry, p. 190, col. 2 for Indian Territory purchased by
the U.S. Government and given to the Seminoles in 1856 (before the Civil
War, cf. Sattler just infra), pp. 190–1 for most Indians from the Southeast
siding with the Confederacy, in part because proximity favored sway of
the South, for new treaties negotiated in 1866 with the Choctaws, Chicka-
saws, Cherokees, and Creeks that took the western half of Indian Territory
from the Five Tribes for the settlement of other Indians, set aside north-
south and east-west strips of land for railroads, provided that freed slaves
of Indian nations were to be made citizens therein, and for the fact that the
Chickasaws never accepted the provision granting citizenship (but this
narrow scope is misleading). Kilroe, “Amerindian Slavery, Southeast,”
HEWS, p. 38, col. 2 about Southern Indians fighting on both sides of the
Civil War, and treaties negotiated after the war whereby the Indians agreed
to free their slaves and make them citizens, though not every nation
accepted the provision of citizenship. Perdue, “Slavery,” ENAI, p. 598,
col. 2 about Southern Indians serving on both sides of the American Civil
War, postwar treaties negotiated with the United States whereby Indian
nations freed their slaves and promised to give them citizenship, and the
fact that most newly made freedmen were abandoned outside the nations
that had enslaved them. Garrick Bailey and Roberta Glenn Bailey, “The
Civil War in Indian Territory,” ENAI, p. 123, col. 2 for all of the Five Civi-
lized Tribes but the Seminoles having a large, politically important class of
slave and plantation owners, p. 125, col. 2 for many members of the Five
Civilized Tribes having served both sides of the American Civil War, the
declaration by the U.S. Government that the treaties with the tribes were
void (the new treaties themselves say inconsistent parts from previous
treaties make those parts, or else the treaties containing them, void), and
the new treaties that ceded the western portion of Indian Territory to the
United States. Sattler, “Seminole,” ENAI, p. 577 about a new treaty with
the Seminoles whereby the Seminoles sold their existing territory to the
U.S. Government and bought land more expensive by the acre and one-
tenth the size from the Creeks. Micco, “Africa Americans and American
Indians,” ENAI, p. 6, col. 2 for the adoption of slavery styled after the
white, Southern institution by the Cherokees and Creeks, and p. 7 for the
1866 treaties with the Five Civilized Tribes, the denial of citizenship to all
freed slaves of the Choctaws and Chickasaws, the denial by the Cherokees
of some of their freed slaves, the full granting of citizenship by the Semi-
noles, and the black Buffalo Soldiers who aided the divestiture of tribal
lands after the Civil War to the benefit of white and black settlers. The
treaty for the Chickasaw was also the treaty for the Choctaw. The treaties
of 1866 are in the 14th volume of the U.S. Statutes at Large: p. 756, article
2 for no slavery but citizenship with Seminoles, p. 760, article 11 for the
voiding of inconsistent previous treaties with Seminoles, pp. 769–70, arti-
cles 2 and 3 for no slavery but citizenship with Choctaws and Chickasaws,
p. 781, article 51 for the voiding of inconsistent previous treaties and parts
of treaties (whatever that means: lawyers' job security) with Choctaws and
Chickasaws, p. 786, article 2 for no slavery but citizenship with Creeks
after a year of absence, p. 790, article 14 for the voiding of inconsistent
previous treaties with Creeks, p. 801, article 9, for no slavery but granted
‘rights of native Cherokees’ within a six month period only, p. 806, article
31 for the voiding of inconsistent previous treaty provisions with Chero-
kees.
248 para: management
Kehoe, North American Indians, p. 183 for the U.S. national security
issue posed by Indians as one motive for their removal westward. Becker,
“Cayaga,” ENAI, p. 104, col. 2 about Cayuga warriors who often joined
the French during the Seven Years' War (1756-63). “Caughnawaga,”
ENAI, p. 104, col. 1 about the Loyalist Indians, Iroquois, not welcome in
the United States after the American Revolution. Kidwell, “Choctaw,”
ENAI, p. 120, col. 1 about U.S. concerns that the Spanish might foment
unrest among the Choctaw situated between Spanish Florida and the
United States. Sattler, “Seminole,” ENAI, p. 576, col. 2 and p. 577, col. 1
for Seminole aid of the British in the War of 1812, continued hostilities
between Americans and Seminoles near the U.S. border, and Andrew Jack-
son's subsequent invasion of Florida which led to the U.S. acquisition of
Florida from Spain.
249 para: people
Michael E. Smith, The Aztecs (Oxford, UK and Cambridge, USA:
Blackwell, 1996), pp. 248–9 for writing of Mayans and Aztecs, p. 250 for
the Aztec hieroglyphs as mnemonic devices used to supplement oral tradi-
tions, p. 245 for paper made from bark, pp. 253–60 for the Aztec's use of
astronomy and calendars, pp. 96–8 for introduction from Andian South
America to Mesoamerica of copper in 700 A.D. and bronze in 1200 A.D.
and the use of bronze by the Tarascans (an enemy of the Aztecs to the
south), pp. 122, 171–2 about the obsidian-bladed swords of the Aztecs.
Charles O. Hucker, China's Imperial Past: An Introduction to Chinese
History and Culture (Stanford, California: Stanford University Press,
1975), pp. 7–8 for the failure of modern Chinese governments to materi-
ally lessen the difficulty of written Chinese and the unlikelihood it will
ever be transferred to an alphabetic writing system. Nigel Davies, The
Ancient Kingdoms of Peru (London: Penguin Books, 1997), p. 115 about
pictorial codices of pre-Hispanic Mexico, pp. xiii, 22, 108 for no writing
of Incans and all other Andean peoples, pp. 144–7 for the Incan sacrifice
of virgins, women generally, men, and children by methods such as heart
removal, throat cutting, and live burial, p. 192 for an Incan drum made
from an enemy's skin, p. 196 about the Spanish cutting off the right hand
of 200 Indians to dissuade resistance and retaliation, p. 188 for mention of
Incan battle axes, pp. 17, 129, 195 for the use of spears, slings, and clubs
by Incas like the Moche of the Peruvian region a thousand years before
them, though a transition from stone-headed to bronze-headed clubs
occurred at some unspecified time and possibly within that thousand years.
Kehoe, North American Indians, p. 66, sidebar for the Mayans having the
most complete writing system of Classical Mesoamerica, based on writing
in stone, and having advanced astronomical-calendrical calculations
(suggestive of a more pragmatic writing surface, cf. next segment), pp. 67–
8 for folding paper books of the Maya, the great majority of which were
burned by the Spanish, p. 73, col. 2 for the transfer of metallurgy tech-
nology in copper, gold, and silver circa 950 A.D. from the Peruvian region
to Mesoamerica (just before the Mayan collapse), and the limited use of
bronze by Mexicans (Toltecs and Aztecs) in pre-Columbian times but
without appreciation of bronze's strength, Mexican products to include
massive discs of gold, gold jewelry of the nobility, and the few practical
metal tools made of copper such as awls, needles, and fishhooks, p. 103
with map and p. 108 about copper bells and crude mirrors of iron pyrites
imported by the Hohokam residing in what is today southern Arizona and
exported by central Mexicans who might barely have known of the
Hohokam, a people whose crafts were of ceramic and stone. Bertrand
Flornoy, The World of the Inca, trans., Winifred Bradford (New York:
Vanguard Press, c1956), p. 15 for Indian arrows and Toledo armour, p. 19
for mail, p. 21 for a Spaniard's sword, p. 30 for weaponry of coastal Peru-
vian Indians being poisoned arrows and stones, and p. 37 for a Toledo
blade. Richard F. Townsend, The Aztecs, 2nd ed. (Thames and Hudson,
2000), p. 183 for the arrival of metallurgy in Mesoamerica circa the 9th
century and its main use (qualified to the Mesoamerican region it seems)
in jewelry-making.
T. A. Rickard, Man and Metals: A History of Mining in Relation to the
Development of Civilization (New York: Whittlesey House, 1932), vol. 1,
pp. 98–9, 102–5 for the shaping of native copper by Native Americans
using stones, and p. 102 about their conceptualization of native copper as a
stone. Found via Douglas Alan Fisher, The Epic of Steel (New York:
Harper & Row, c1963), p. 21, endnote 5 is John W. W. Sullivan, The Story
of Metals (Cleveland, Ohio and Ames, Iowa: American Society for Metals
and The Iowa State College Press, respectively, c1951), pp. 34, 36–7 about
North American Indians using native copper for thousands of years,
perhaps earlier than ancient Egyptians did some 5500 years ago, using fire
to crack rocks and recover native copper, and never completely emerging
from the Stone Age. Peter Farb, Man's Rise to Civilization as Shown by
the Indians of North America from Primeval Times to the Coming of the
Industrial State (New York: E. P. Dutton & Co., Inc., 1968), pp. 220–3
about copper art by the Hopewell Indians before 750 A.D. if not before
500 A.D., by Native Americans from Mexico or Central America before
circa 500, and by Mississippian Indians after 500, and p. 115 about the
unintentional and general reintroduction of horses to the New World, in
North America specifically, by the Spanish after settling New Mexico in
1598. Crosby, “United States: 23. Early Man in America,” EA–99, vol. 27,
and p. 689, col. 2 about the Hopewell Indians who thrived before 500 A.D.
and buried sheets of copper with their dead, and p. 691 about the living
standard of Plains Indians improved by domesticating horses originated
from Spaniards or Mexicans. Albert C. Leighton, “Horse: 1. The Horse
and Human History,” EA–99, vol. 14, pp. 392–3 about the reintroduction
of horses to the Western Hemisphere, the South American pampas and
North American plains, in the 17th century by the Spanish.
250 para: reasons
Elliot A. Rosen, Roosevelt, the Great Depression, and the Economics of
Recovery (Charlottesville, Virginia: University of Virginia Press, 2005), p.
6 about research, recent as of 2005, suggesting that income inequality of
some type is beneficial to economic growth (and thus socioeconomic
advance). Roland Oliver, ed., The Cambridge History of Africa, Volume 3
(of an 8 volume series), From c. 1050 to c. 1600 (Cambridge: Cambridge
University Press, 1977), p. 41 about the slow decline of the once virtually
invincible Mamluk army, pp. 62–5 about the decay of Mamluk Egypt, the
psychological and social disdain of the Mamluk ruling class to the new
weaponry of firearms, left for use by the limited number of Egyptian
troops composed of so-called inferior peoples such as local levies,
foreigners and blacks, and about the start of Ottoman reign and the Egyp-
tian conquest of Sultan Selim I, and p. 40 for the perpetuation of the
Mamluk class through slavery (a replenishment method similar to that of
the eunuch class who guarded the Prophet's tomb in Medina as cited from
Marmon supra on page 505). Bernard Lewis, Race and Slavery in the
Middle East: An Historical Enquiry (New York and Oxford: Oxford
University Press, 1990), p. 68 for the social disdain for firearms by the
mamluk knightly society, and pp. 66–9 for a history indicative of an incli-
nation to oust black slave warriors from the sultan's favor. Bernard Lewis,
Cultures in Conflict: Christians, Muslims, and Jews in the Age of
Discovery (New York: Oxford University Press, 1995), pp. 20–1 for the
fateful Mamluk aversion to firearms, p. 21 for the Ottoman Empire as the
only Muslim state to make full and effect use of musketry and artillery,
and p. 23 for the Ottoman ban until the 18th century on the production by
printing press of only text in Arabic, the language of the ruling Muslim
class.
250 para: East,

251 para: centuries
Michael Greenberg, British Trade and The Opening of China 1800–42
(Cambridge: Cambridge University Press, 1951 or 1969), p. 103, fnote 2
about Mandarins refusing to allow a foreign steamer to operate as a river
passenger boat in 1835, and local Mandarins ordering the first railway
from Shanghai to Woosung to be dismantled. Canadian Sessional Paper
No. 54a, dated 25 February 1885, Session 1885 (5th Parliament, 3rd
session), Vol. 11, Chapleau's Report, p. lii about the railroad between
Shanghai and Wusung bought by the Chinese Government only to dispose
of it, and for a quote or a translation derived therefrom of Chinese Colonel
Tong from Revue des deux Mondes explaining that railroads ‘would
disturb our customs.’ Hosea Ballou Morse, The International Relations of
the Chinese Empire, in 3 volumes (London: Longmans, Green, and Co.,
1910 for vol. 1, 1918 for vols. 2 and 3), vol. 3, pp. 72–5 for foreign
entreaty to build railroads and the aversion of the Chinese Government to
foreign intrusion, not railroads per se, pp. 75–6 for the foreign merchants
at Shanghai building a railroad from Shanghai to Wusung using subterfuge
of rebuilding a military carriage road from Shanghai to Wusung to prepare
the track bed and of a horse-drawn tramway to lay the rails, pp. 76–7 for
the railroad built 1880–1881 with the less than perfect subterfuge of a
mule-drawn tramway, and despite an (imperial) order to a viceroy Li
Hung-chang, and pp. 76–81 for the fitful adoption of railroad construction
by the Chinese Government. Found via Morse, Relations, vol. 3, p. 74,
fnote 5 and p. 496, though the author was given as Percy Howard Kent,
was Percy Horace Kent, Railway Enterprise in China: An Account of Its
Origin and Development (London, Edward Arnold, 1907), pp. 16, 22 about
railroad advocate Governor Ting, p. 12 for the ‘first railway run’ in China
on the yet incomplete line from Shanghai to Woosung, p. 14 for its
completion at some time close to its opening on 1 December 1876, p. 15
for the temple replacing the Shanghai station, and pp. 22–5 for the
(second) railroad in China built 1880–1881 with the direction of busi-
nessman Tong King Sing and political support of Li Hung Chang, Viceroy
of Chihli. It is interesting to compare the premium placed on family and
social order by Chinese and French cultures. Orthodox Confucianism of
China was treated supra in the regular text.
Peter Moogk, La Nouvelle France: The Making of French Canada—A
Cultural History (East Lansing: Michigan State University, c2000), pp.
67–8 about the order and inflexibility of French thought that precluded
anticipation of intelligent opposing military strategies and development of
sound defensive strategies, leading to defeat to the British, pp. 63–5 about
French Canadian culture and civil law before and surviving after the
British conquest 1759–60 that affirmed the patriarchal family not the indi-
vidual as the basic unit of society, and p. xvi for New France having been
an extension of France itself with the attendant premium on French values.
Lest some conclude the point is to disparage the value of the family, I note
the distinction between family values that empower the individual with
those that stifle the individual for your rumination of the judgments
rendered by life and recorded by history.
Rauchway, Great Depression, pp. 10–2 for British development of the

New World and perhaps poorer countries of the Old World before the First
World War and the transition during the war of the world's financial center
from London to New York, and to ward off confusion of the diligent
learner, p. 60 mistakenly for London as the financial capital of the world in
1931—compare Jeremy Atack and Peter Passell, A New Economic View of
American History from Colonial Times to 1940, 2nd ed. (New York: W. W.
Norton & Company, c1994), p. 570 for the section heading “America: The
Unwilling Leader of the World Economy” in the chapter entitled “Amer-
ican comes of age: 1914-1929,” and p. 574 about Great Britain during the
1920s in a financially vulnerable position, forced to raise interest rates and
to lower domestic investment and plant modernization, and lagging behind
the rest of the developed world, and compare Charles H. Feinstein, Peter
Temin, and Gianni Toniolo, The World Economy between the World Wars
(New York: Oxford University Press, 2008), p. 35, last sentence for
America becoming the world's dominant financial power during WWI, p.
98 for only the United States and France having a strong financial position
at the onset of the Great Depression, the coincidence being quite natural,
since those two countries were sterilizing (hoarding) gold (in contradiction
to the function of the world's gold standard, but there were certainly other
causes for onset of the Great Depression), p. 108 for the aphorism: “No
longer London, not yet New York.”, and p. 107 (confirming Hetzel given
infra) for the orthodox and self-destructive advocacy in the 1920s of the
gold standard that with hindsight has been put into perspective. The gold
standard worked because holders of weak currency could buy gold at a
discount and move it to a foreign currency and buy foreign goods with
increased real purchasing power; the inflow of gold converted to foreign
currency caused inflation, exports, and higher prices in the foreign market;
the self-serving devaluation by a country of its currency had a measured
price on its government's gold reserves and on its people's economic
activity that was consistent and allowed time for political correction. The
flow of gold for investment purposes was regulated by the relativeness of
international interest rates and reputed reliability. Government surplus
demonetization or government borrowing can finance the sterilization of
gold, that it the purchase of gold not liable to redemption by outstanding
currency. Robert L. Hetzel, The Monetary Policy of the Federal Reserve:
A History (New York: Cambridge University Press, 2008), p. 12 for refer-
ence to the automatic equilibration of balance of payments inherent to the
international gold standard and not formerly understood by most
economists nor by the standard's advocates and practitioners—but I have
to think U.S. and French policymakers understood ‘every nation for itself’;
the United States precipitated the collapse of world trade with the Smoot-
Hawley Tariff, signed by President Hoover on 17 June 1930 at 12:59 p.m.,
effective the next day (both per 46 Stat. 763), and the result of a political
impetus initiated by farming interests; Atack and Passell, Economic View,
2nd ed., pp. 600–1, 607 for the Smoot-Hawley Tariff precipitating the
collapse of world trade and its initial impetus from farming interests. With
Woodrow Wilson's armistice the World War continued economically,
nurtured by foolish U.S. loans gone bad with the Great Depression, and
resumed militarily with World War II. Certainly, real inflation was caused
by war and the collapse of trade, but the Great Depression was character-
ized by deflation and vanquished by wartime spending, which leads me to
believe that the credit collapse was the greater force of the comprehensive
economic ruin.
Blair Stonechild, “Indian-White Relations in Canada, 1763 to the
Present,” ENAI, pp. 270–81 about treaties between ‘First Nations’ and the
British Empire followed by Canada. Kenneth W. McIntosh, “Creek
(Muskogee),” ENAI, p. 142, col. 1 for the development of the Creek nation
identity after European contact in the 17th century. Kehoe, North Amer-
ican Indians, p. 179, col. 2 for the concept of nationhood projected upon
southeastern Indians by Europeans, and p. 98, col. 2 for Indian rebellions
during the 1970s in the United States and Canada but not Mexico (where
they have less tolerance for cultural challenge and less riches over which
to fight).
252 para: Grande
What research on the topic of Indian relations with whites south of the
United States that has made available to Americans in the English
language is of course to be commended. Charles Gibson, “Conquest,
Capitulation, and Indian Treaties,” American Historical Review, Vol. 83,
No. 1 (February 1978), p. 1 for treaties with Indian of North American
made by the English and French, for treaties or a treaty between Indians
and the Dutch in the Hudson Valley, and for treaties the Portuguese made
with the natives of Brazil with no further specifics, and pp. 14–5 about the
Spanish-Indian treaties of June 1784 first with the Creeks in West Florida,
signed at Pensacola on June 1st and a second with the Alibamos, Chicka-
saws, and and Choctaws, signed at Mobile three weeks later. William C.
Sturtevant, gen. ed., Handbook of North American Indians, Vol. 4,
Wilcombe E. Washburn, vol. ed., History of Indian-White Relations
(Washington: Smithsonian Institute, 1988), p. 628, col. 1, vide index entry
‘Carondolet, Francisco Luis Hector, Baron de’, for the the Treaty of
Nogales, signed in 1793, with which the Creeks, Cherokees, Choctaws,
Chickasaws, and Alabamas ratified the ‘agreements they had made with
Spain since 1784.’ John K. Mahon, “Indian-United States Military Situa-
tion, 1775–1848” in Washburn, History of Indian-White Relations, p. 149,
col. 1, citing (with p. 723) John W. Caughey, McGillivray of the Creeks
(Norman: University of Oklahoma Press, 1938, reprinted in 1959), no page
number given, for a 1784 treaty between the Spanish and the Creeks who
thereby came under the Spanish protection and apparently also involving
the Choctaw and the Chickasaw who ‘signed with’ the Creek leader—a
contrary implication to which tribes shared treaty participation. Hence,
John Walton Caughey, “The Career of Alexander McGillivray” in John
Walton Caughey, ed., McGillivray of the Creeks (Norman: University of
Oklahoma Press, 1938), p. 25 for the signing of a treaty between Spain,
and McGillivray and the Creeks on 1 June 1784, and pp. 28–9 for the large
delegations of the Cherokees (it seems a discrepancy vis-à-vis the
Alabamas), Choctaws, and Chickasaws who, happy to accept Western
gifts, ‘professed allegiance to Spain in the Mobile Congress in 1784’ and
then later agreed to a perhaps conflicting allegiance by written treaty with
the United States at Hopewell, on the Keowee, and for the indiscriminating
acceptance of Western gifts being typical of Indians, perhaps motivated by

relative poverty. Caughey, ed., McGillivray of the Creeks, pp. 75–6 for
excerpts from the Treaty of Pensacola, originally in parallel columns of
Spanish and English, signed 1 June 1784, between Spain and the Creek
Nations but no other Indian tribes or parties whatsoever, and p. 327 for the
translated text of a letter in Spanish dated 29 May 1792 from Pedro Oliver
to Sor. Baron de Carondelet, an excerpt of which is: “In the same assembly
it was decided that the meeting could be held in Pensacola for the Creeks
and Cherokees and in Mobile for the Alabamas, Chickasaws, and
Choctaws as was formerly done *x*x*.” I have decided to trust the
description given by Charles Gibson for my account of the 1874 treaties
between Spain and Indians.
Dauril Alden, ‘Black Robes Versus White Settlers: The Struggle for
“Freedom of the Indians” in Colonial Brazil’ in Howard Peckham and
Charles Gibson, eds., Attitudes of Colonial Powers Toward the American
Indian (Salt Lake City, University of Utah Press, c1969), pp. 24–38 for the
Portuguese enslavement of Brazilian Indians in the 16th, 17th, and 18th
centuries, and pp. 29, 34 for associated slaving raids. I read other essays
or chapters in Colonial Powers that do not indicate treaties (or trust funds):
Lewis Hanke, “Indians and Spaniards in the New World: A Personal
View,” pp. 1–18; Allen W. Trelease, “Dutch Treatment of the American
Indian, With Particular Reference to New Netherland,” pp. 47–59; and
Edward H. Spicer, “Political Incorporation and Cultural Change in New
Spain: A Study in Spanish-Indian Relations,” pp. 107–35. I did not care-
fully read the remaining essays: Mason Wade, “The French and the
Indians,” pp. 61–80; and Wilbur R. Jacobs, “British-Colonial Attitudes and
Policies Toward the Indian in the American Colonies,” pp. 81–106.
Michael C. Meyer, “Mexico: 8. History,” EA–99, vol. 18, p. 863, col. 2
about Miguel Hidalgo y Costilla, a parish priest who studied the French
Enlightenment, found Spanish governance intolerable, and in 1810 initi-
ated the Wars of Independence that led to a sovereign Mexico. Charles
Gibson, “Spanish Indian Policies” in Washburn, History of Indian-White
Relations, on pp. 96–102, does not make a reference to treaties or trust
funds. Edward H. Spicer, “Mexican Indian Policies” in Washburn, History
of Indian-White Relations, on pp. 103–9 for nascent Mexico's principal of
equality applied to an equality of institutional scope, 90 years of violence
and the government strategies of armed force, exemplary colonization, and
deportation, the continued assent of hacienda landlordism with the result
of widespread debt peonage, 60 percent of the population having been
Indian in 1810 but much reduced by the end of the century in no small part
to miscegenation, the turning point in government Indian policy in the
1920s, and the creation of Insituto Nacional Indigenista in 1948.
252 para: heritage
Crosby, “United States: 23. Early Man in America,” EA–99, vol. 27, p.
688, col. 1 for 200 mutually unintelligible languages north of Mexico in
pre-Columbian times and the multiplicity of Indian cultures making
unified action against invading Europeans very difficult. Kehoe, North
American Indians, p. 556, col. 1 for the coexistent particularization of
language and thought. Fred J. Shore, “Cree,” ENAI, p. 139, col. 2 and p.
140, col. 1 for an account of Cree nationalism before and after contact with
Europeans, tacitly framed by the cultural norm inherent in the English
language. “Caughnawaga,” ENAI, p. 104, col. 1 for a use of the term
Native Canadians. Eric Hobsbawm, The Age of Revolution: Europe 1789–
1848 (New York: Barnes & Noble Books, 1996), pp. 53, 144–5 for the
concept of nationalism created by Europeans of the late 18th and early
19th centuries via the British Industrial Revolution and the political French
Revolution and the adoption of nationalism, a modern quality, by the
Islamic world via Westernization, first in Egypt, thereby facilitating the
construction of the Suez Canal, and last by a group to include Morocco.
Bernard Lewis, Cultures in Conflict: Christians, Muslims, and Jews in the
Age of Discovery (New York: Oxford University Press, 1995), pp. 70–1 for
the idea that the descendants of the Aztecs and Incas, not the Aztecs and
Incas themselves, have undergone a process by which they acquired an
identity as Americans, and about the development of Asianism in the late
19th and early 20th centuries, incidentally, and of Africanism still later,
both identities in response to and acknowledgment of a Eurocentric world
and both made possible only because knowledge of geography was trans-
mitted by European textbooks. Why abandon the original and proven
continental culture for a reactionary and half-assed imitator averse to
Westernization?
253 para: courage
Paul L. Murphy, “Constitution of the United States,” EA–99, vol. 7, p.
659, col. 1 about the Constitution as a fruit of the Age of Enlightenment.
See the endnote of the third paragraph previous in the regular text, on page
642, for evidence of a French cultural foible.
254 para: flags
Eric Hobsbawm, Age of Revolution, pp. 90–2 for the seminal political
thought of the French Revolution, exported by the French imperialism
dominated by Napoleon, physically to most of continental Europe with
immediate and irreversible effect, and intellectually to the world at large,
and pp. 182–199 for the opening of opportunity to talent, pp. 154–8 for the
acquisition of land, sometimes by peasants, pp. 158–60, 200–16 for the
natural development of socialism from the unstable paradigm left behind
by French Empire, p. 65 for the use of old royal white and the Parisian red
and blue in the French tricolour, pp. 53, 132 for the adoption of the
tricolour by unnamed nations subsequently formed by people inspired by
the French Revolution, and p. 144, the fnote for inspiration that the French
Revolution was to Irish nationalism. Jonathan Sperber, Revolutionary
Europe, 1780–1850 (Harlow, England: Pearson Education Limited, 2000)
p. 178 for an interesting comparison of Napoleon and Hitler, pp. 179–81
for Napoleon's sincere and practical desire for the prosperity and a legal
equity of his subjects-citizens in a government administrated by an elite
chosen as notables not nobles, but p. 1 refers to the infamous quip
attributed to Marie Antoinette that one may regard as a placement device
more than a historical truth. The World Factbook 2007, Central Intelle-
gence Agency, extracted from a Zip file downloaded on 7 April 2008 from
the download Web page at https://www.cia.gov/library/publications
/download/download-2007/index.html, or perhaps more convenient is the

current version as may be directly browsed, for visual record of the
national flags of the world and many instances of symbolism from one flag
incorporated into another, including French flag symbolism incorporated
into the Belgian, Chadian, Irish, Italian, and Ivorian flags.
255 para: requirements
Michael Howard, The First World War (New York: Oxford University
Press, 2002), p. 2 about the German Empire created by the Kingdom of
Prussia that reduced a resentful France to a ‘second-rank status’, pp. 9, 11
about archaic German militarism, and p. 10, photograph, should it interest
you, to search the face of Kaiser Wilhelm II for a soul eerily similar to one
projected by a later German leader. Office of United States Chief of
Counsel For Prosecution of Axis Criminality et al., Nazi Conspiracy and
Aggression, in eight volumes (Washington: Government Printing Office,
1946), vol. 7, p. 489 for the quote about cultural purity, from a translated
transcript of a speech by Dr. Hjalmar Schacht on 18 August 1935 at the
Eastern Fair in Koenigsberg (or Königsberg), Germany, (now Kalinigrad,
Russia), and interestingly pp. 492–3 for an excerpt from the same transla-
tion: “There is a modern theory, which is of the opinion, that the more one
spends the richer one becomes. This type of economist is to be considered
the same way that scientists consider the inventor of perpetual motion.”
Online transcript of the Constitution from the U.S. National Archives &
Records Administration website at www.archives.gov accessed 2 January
2007, for the quote but modified by the removal of capitalization of the
words ‘Title’ and ‘Nobility’. Joseph Pulitzer, A Report to the American
People, (St. Louis: 1945), p. 16 for the wife of the commandant of
Buchenwald who made herself a lamp shade and other items with tanned
human skin, sometimes tattooed, and p. 20 for the quotes of Joseph
Pulitzer, not contiguous in the source—note the publisher is not indicated.
Robert H. Abzug, Inside the Vicious Heart: Americans and the Liberation
of Nazi Concentration Camps (New York: Oxford University Press, 1985),
p. 128 about the sadist effects found at or nearby the Buchenwald concen-
tration camp to include tattooed human skin collected by the wife of the
commandant and shrunken heads of prisoners used as trophies and paper-
weights, p. 129 for a picture with a caption making reference to lamp-
shades, and pp. 132, 134 for identification of Joseph Pulitzer as a German
American, one who had been skeptical of the reports of German atrocities
until he accepted General Eisenhower's invitation and toured Germany,
supported with citation of Pulitzer, A Report, p. 94 where Joseph Pulitzer
recalls dismissing his skepticism.
255 para: world
Richard Fletcher, Moorish Spain (Berkeley: University of California
Press, 1993), p. 173 about better documentation of Christian intolerance of
Muslims than of Muslim intolerance of Christians in medieval Iberia
lending itself to a politically correct bias. John Reader, Africa: A Biog-
raphy of the Continent (New York: Alfred A. Knopf, 1998), pp. 362–4
about the historical record of Africa, being replete with European docu-
mentation from the 16th century onward due to European exploration,
lends itself to the unsupported conclusion that the prevalence of violence

and cruelty within civilizations native to sub-Saharan African was intro-
duced or substantial increased by Europeans. Patrick Manning, Slavery
and African Life: Occidental, Oriental, and African Slave Trades
(Cambridge: Cambridge University Press, 1990), p. 27 for the best docu-
mented slavery in ancient times being the slaveries in Greece and Rome.
Bernard Lewis, Race and Slavery in the Middle East: An Historical
Enquiry (New York and Oxford: Oxford University Press, 1990), p. vi but
cf. pp. 11, bottom and 14 about the abundance of documentation on
slavery in the Western world and the openness of the Western world to
scholarly self-examination on the topic in stark contrast to the dearth of
scholarship concerning Islamic slavery and the ‘extreme sensitivity’ some-
times ‘professionally hazardous’ to those who would research it.
256 para: vitality
“Code Talkers,” ENAI, pp. 128–9 for Indian code talkers of World Wars
I and II, and the unbroken Navajo code of WWII.
257 epi: side
Martin Luther King, Jr., a speech delivered in Washington, D.C. on 17
May 1957 in Clayborne Carson and Kris Shepard, eds., A Call to
(Atlanta: IPM, c2001), p. 50 for the epigraph of King about quasi-liber-
alism, with the comma after ‘sides’ per the source.
257 para: virus
Scott Whitlock, “GMA's Sawyer Speaks to 16 Female Senators: No
War if Women Ran the World?” Web page, dated 17 January 2007, from
NewsBusters website by the politically minded Media Research Center,
accessed 13 June 2008 at http://newsbusters.org/node/10213, about the TV
show Good Morning America of 17 January 2007 with host Diane Sawyer
and 16 female U.S. senators entertaining the notion that feminine leader-
ship could reduce the world's costs of war and for the then recently made
insinuation by Senator Barbara Boxer (D-California) that Secretary of
State Condoleezza Rice (Republican administration) is less sensitive to the
costs of war because she has no children—the Democratic affiliations of
the lady senators were boldfaced (<strong>) in the Web page's text, but the
Republican ones were not.
258 para: pill
The red-pill metaphor comes from the movie The Matrix (1999).
259 para: Protocol
Most of the particulars about the Kyoto Protocol are derived from
regular Web pages and PDF documents accessed from the UNFCCC
website (www.unfccc.int) in April 2008, but the UNFCCC website was not
a source for the signature by U.S. Ambassador Peter Burleigh. The treaties
are dated by initial signature not the prior adoption of final form by negoti-
ating parties. Angela Antonelli and Brett D. Schaefer, “Why the Kyoto
Signing Signals Disregard For Congress,” dated 23 November 1998, The
Heritage Foundation, accessed 11 April 2008 at http://www.heritage.org
/Research/EnergyandEnvironment/em559.cfm, about Acting U.S. Ambas-

sador Peter Burleigh signing the Kyoto Protocol on 12 November 1998.
“U.S. signs global warming treaty,” dated 12 November 1998, CNN.com,
accessed 11 April 2008 at http://www.cnn.com/TECH/science/9811/12
/climate.signing/, about Deputy U.S. Ambassador Peter Burleigh signing
the Kyoto Protocol on 12 November 1998.
260 para: nations
Most of the particulars about the Kyoto Protocol are derived from
regular Web pages and PDF documents accessed from the UNFCCC
website (www.unfccc.int) in April 2008, but the UNFCCC website was a
source about Greenland only in the sense they Greenland was not listed as
party to the Framework Convention—secondary Internet sources in
English indicate that Greenland is involved with the Kyoto Protocol
through Denmark. The U.S. Department of Energy has monitored climate-
change data with its Carbon Dioxide Information Analysis Center
(CDIAC) since 1982, according to the CDIAC website (cdiac.ornl.gov) on
24 April 2008. “Annex B Countries” Web page accessed 24 April 2008 at
http://cdiac.ornl.gov/trends/emis/annexb_countries.htm, for a list of Annex
B, listing the EU15 countries individually unlike the list on the UNFCCC
website did, and with the entries: France (including Monaco), Italy
(including San Marino), and Switzerland (including Liechenstein)—but
the last ‘including’ was spelled ‘inlcuding’.
264 para: 1961
Helmut Führer, The Story of Official Development Assistance: A
History of the Development Assistance Committee and the Development
Co-operation Directorate in Dates, Names and Figures, Organisation for
Economic Co-operation and Development, Paris 1996, accessed 21 April
2008 at http://www.oecd.org/dataoecd/3/39/1896816.pdf, p. 7 about the
campaign of the World Council of Churches in 1958, and p. 13 about the
U.N adoption of a target of approximately 1 percent of national income of
advanced countries.
264 para: immense
Führer, Story of ODA, pp. 8–9 about the renaming of the OEEC in
September 1961. Statistical Abstract of the United States 2008 (127th
Edition), as accessed via the U.S. Census Bureau portal Web page at
http://www.census.gov/compendia/statab on 16 September 2008, table
1269, p. 794, for annual totals of U.S. Government foreign grants and
credits, in millions, all values given shown here: $14,396 in 1990, $17,878
in 2000, $12,602 in 2001, $17,213 in 2002, $23,131 in 2003, $22,335 in
2004, $31,729 in 2005, and $23,304 in 2006. Curt Tamoff and Larry
Nowells, Foreign Aid: An Introductory Overview of U.S. Programs and
Policy, CRS Report 98–916 F, Congressional Research Service, The
Library of Congress, dated 6 April 2001, summary page for: “The United
States is currently the second (behind Japan) leading international
economic aid donor in terms of dollars, but is the smallest contributor
among the major donor governments when calculated as a percent of
GNP.” Susan B. Epstein and Kennon H. Nakamura, State, Foreign Opera-
tions, and Related Programs: FY2009 Appropriations, CRS Report
RL34552, 21 August 2008, p. 34 for the U.S. Government expenditures in

fiscal year 2007 of $1,752.3 million (nearly 2 billion) for the Millennium
Challenge Corporation and of $3,246.5 million for Global Health and
Child Survival. Agency Financial Report, Fiscal Year 2007, United States
Agency for International Development (USAID), p. 11 w/ table and p. 13
w/ chart for a net cost for the USAID operations in fiscal year 2007 of $9.3
billion dollars and the exclusion from net cost of operations performed per
budget authority transfered to the USAID from ‘parent agencies’. Depart-
ment of State and Other International Programs, Budget of the United
States Government, Fiscal Year 2009, Government Printing Office, p. 92
for: “The President has more than doubled funding for democracy, gover-
nance, and human rights programs since taking office, and the Budget
continues to increase funding in these areas.” Note that ‘outlays’, expendi-
tures on a cash basis, for fiscal year 2007 are itemized in the appendix of
the 2009 budget report. How to determine what entries, under the U.S.
Department of State for example, are included in the $9.3 billion of net
costs reported by USAID is not readily evident. Another complication is
the distinction between a cash basis with the budget's outlays and an
accrual basis with (it seems) for the net cost of $9.3 billion. That informa-
tion would be needed to calculate a total for U.S. foreign aid, or more
restrictively, U.S. foreign charity for a given fiscal year. Regardless, it
appears that the U.S. Government is spending more than $10 billion a year
on outright foreign charity. It is worth noting here that having on the
leading Western nation an onus to rebuild (or develop) Iraq and
Afghanistan is simultaneously quite consistent with the ideals of global
socialism and modern American conservatism. The latter being one of the
camps vying myopically in the one-dimensional left-right political spec-
trum, though both camps are ultimately obliging the agenda of a new
world order.
264 para: read, programmes,
265 para: percent
Führer, Story of ODA, pp. 10–12 about the renaming of the DAG to the
DAC and the expanded aid mission, p. 15 about the first DAC Chairman's
report published in September 1962, p. 14 for the quote of the report, and
p. 21 about adoption of the concept Official Development Assistance
(ODA) by the DAC in 1969 and the adoption of the 0.7 percent target by
the U.N. in 1970.
265 para: justice,
266 para: balls
Catherine Gilbert Murdock, Domesticating Drink: Women, Men, and
Alcohol in America, 1870–1940 (Baltimore: John Hopkins University
Press, 1998), p. 4 for the inseparability between the political contest to
effect national prohibition and women's suffrage, and p. 8 for the transition
ushered in by Prohibition from the all-male saloon to the mixed-sex
speakeasy. Emancipated young women popularly became party girls
called flappers, potent facilitators of indulgent consumption and expendi-
ture during the 1920s. In America the kindred rivalry between Christianity
and feminism is scarcely recognized. Mohammed Arkoun, Rethinking
Islam: Common Questions, Uncommon Answers, trans. Robert D. Lee

(Boulder, Colorado: Westview Press, 1994), p. 10 about the framework of
classical Islam that divides the world between the home of Islam (dār al-
islam) and the land of war (dār al-harb), the orthodox caliphs of the
seventh century who applied it long ago, the distinction of that perceptual
framework of classical Islam from the perceptual framework of contempo-
rary Islam, and polemics of Jews and Christians which anachronistically
and wrongly project modern human rights onto contemporary Islam
without the same scrutiny on Judaism and Christianity. Seyyed Hossein
Nasr, A Young Muslim's Guide to the Modern World, 2nd ed. (Chicago:
KAZI Publications, Inc., c1994), pp. 3–4 tells us: “In the traditional
Islamic perspective there is nothing secular, nothing outside the realm that
is governed by the religion ordained by Allah.” Islam, never having had a
democratizing ‘Reformation’, is not just absolute religion but also authori-
tarian politics. Western freedom is democracy, an opposite sociocultural
essence.
On the day after reading much of C. Vann Woodward, The Strange
Career of Jim Crow, 3rd revised ed. or 4th ed. (New York: Oxford Univer-
sity Press, c2002) on the subject of segregation, I got the idea that femi-
nists feared liberated masculinity from barely reading Sarah Watts, Rough
Rider in the White House: Theodore Roosevelt and the Politics of Desire
(Chicago: The University of Chicago Press, 2003), p. 2: “*x*x* this
Rough Rider who injected a rich vein of fantasy and emotionalism, an
unabashed paean to violence, and a desperate fashioning of masculinity
into political culture, and who, by doing so, offered ordinary men a sense
that they actively participated in the era's aggressively insurgent
manhood.” The idea of the (political) desire for the segregation of each
sex's vitality followed too easily—like a home run follows the hitting of a
ball just right during an insensitive competition that determines winners
and losers. Watts, Rough Rider, p. 1 quotes Woodrow Wilson as saying
that Theodore Roosevelt was ‘the most dangerous man of the age’—this
from the man who destroyed his health trying to convince Americans
about the universal good that binds us with the world and who could have
averted Hitler's Third Reich by not compromising the hostilities of the
First World War that were an irreplaceable solution to a shattered peace
and prosperity that had been nearly paid in full only to be aborted by his
negotiations. I am saying that if Woodrow Wilson would have done
nothing to negotiate peace, World War II would never have happened
because it would have already been solved by war.
The collapse of the housing market in 2007–2008 was a solution not a
problem. Stop believing solutions are problems. Stop believing charity
can replace merit. Stop believing solar power is a perfect and complete
substitute for petroleum oil. Stop believing the propaganda! If a women's
vote were worth half of a man's vote, America would not have such
indomitable problems. Yes, it would slight a minority of psychologically
capable women, some more capable than I, but it would most readily solve
the problem, and it would likely achieve a political balance more inclusive
and uplifting than has ever been. With no vote women are liable to subju-
gation by men. With an equal vote women are prone to subjugate men.
With political equality absurdity bests reason. The aphorism ‘It's a man's
world.’ means that a viable society is predominated by masculine values as

opposed to feminine values. If there were an economical and incorruptible
way to ‘qualify’ voters on individual merit rather than by sex, that would
offer a more sophisticated, inclusive, and uplifting solution. A ‘fair’
impractical solution would only sacrifice American virtues (and the Ameri-
cans who harbor them) to a domestic minority of fascists or to a foreign
horde of the less civilized, maybe both. Then you ask me, “Doug, do you
mean like the impractical solution that is our political system now?”
Whether a solution to the feminist social infection or not, voting rights
should simply be impermissible for all individuals on welfare roles. If we
could add to the list those individuals on ‘corporate welfare’, again with
the caveat of pragmatic social design, our society would be all the better,
but then we would have the wherewithal to simply end the corporate
welfare. If it were shown that equal suffrage precludes the disenfranchise-
ment of government-sponsored welfare dependents, you would have your
proof that counting a woman's vote with half the weight a man's would be
better than either traditional extreme. Because political candidates are of
necessity treated as individuals, and because the best political leaders
should be sought, one's sex should have no legal bearing on candidacy for
public office. I am not a sexist, nor have I deposited my balls in a
woman's purse.
267 epi: states
U.S. Arms Control and Disarmament Agency, at the time of this publi-
cation located some mysterious place within the executive branch of the
U.S. Government, World Military Expenditures and Arms Transfers 1990
(Washington: U.S. Government Printing Office, November 1991, reprinted
1992), p. 23 for the (first) epigraph.
267 epi: Iran
Kenneth Katzman, Iran: U.S. Concerns and Policy Responses, CRS
Report RL32048 for Congress, Congressional Research Service, The
Library of Congress, 7 March 2005, pp. 32–3 for the epigraph, but the
clarification in brackets has been added not per the source.
268 tab: 6.2
Alberta entries calculated for the fiscal year ending the shown calendar
year as the percentage of non-renewable resource revenue comprising the
total revenue exclusive of transfers from the Government of Canada using
data in Government of Alberta Annual Reports as posted online at
http://www.finance.gov.ab.ca/publications/annual_repts/govt/index.html on
3 August 2006. All other entries calculated as
1 −  Non - Oil - Gas Revenue asGDP Percentage

Total Revenue asGDP Percentage 
from data in Middle East and Central Asia Regional Economic Outlook,
World Economic and Financial Surveys, International Monetary Fund,
May 2006, p. 28, tables 7 and 9, with p. 24 noting oil includes gas.
268 para: million

See the endnote of figures 6.1 and 6.2 for the source showing the U.S.
portion of world consumption, preliminarily, at 24% in 2007. The World
Factbook 2006, Central Intellegence Agency (CIA), downloaded 6
November 2008 as a Zip file from “Download 2006” Web page accessed 6
November 2008 at https://www.cia.gov/library/publications/download
/download-2006/index.html, for estimated U.S. and world populations for
July 2006 of 298,444,215 and 6,525,170,264, respectively, which figures
the United States to have had 4.57% of the world's population in 2006.
The World Factbook 2007, CIA, downloaded 7 April 2008 as a Zip file
from the download Web page at https://www.cia.gov/library/publications
/download/download-2007/index.html, for estimated U.S. and world popu-
lations for July 2007 of 301,139,947 and 6,602,224,175, respectively,
which figures the United States to have had 4.56% of the world's popula-
tion in 2007. The 2008 World Factbook, CIA, as accessed from the portal
at https://www.cia.gov/library/publications/the-world-factbook/index.html on
11 November 2008, for estimated U.S. and world populations for July
2008 of 303,824,640 and 6,706,993,152, respectively, which figures the
United States to have had 4.53% of the world's population in 2008.
268 fig: 6.1,
269 fig: 6.2
International Petroleum Monthly (September 2008), posted 7 October
2008, accessed 6 November 2008 at http://www.eia.doe.gov/ipm/, table 4.6,
for data about petroleum demand. Note the data for the last year, 2007,
should be considered preliminary.
269 tab: 6.3
Note the countries are listed in descending rank of per capita petroleum
consumption: Canada was 0,0711 whereas the United States was 0.0707,
for example. The ranking shown by the first column is for national
petroleum consumption by volume. “World Petroleum Consumption,
Most Recent Annual Estimates, 1980–2007” spreadsheet file, EIA, down-
loaded 2 February 2009 from http://www.eia.doe.gov/emeu/international
/RecentPetroleumConsumptionBarrelsperDay.xls, for the average daily
world consumption of petroleum in 2004 by country and in total, the data
for 2004 being the most recent annual data that was not preliminary. The
World Factbook 2004, Central Intelligence Agency (CIA), the download
Web version updated 10 February 2005, as downloaded May 2006 from
the CIA website, for estimated populations of 2004.
269 para: Lane
Annual Energy Review 2007, Report No. DOE/EIA-0384(2007), Energy
Information Administration, U.S. Department of Energy, 23 June 2008, as
downloaded 13 September 2008 via a link from the Annual Energy
Review (2007) portal Web page at http://www.eia.doe.gov/emeu/aer/, table
5.4 of page 131 and table 5.11 of page 145 for U.S. consumption of
Middle Eastern oil in 2004 and note 1 of page 178 for the equivalence of
supply and consumption. Note the most recent data was for year 2007, but
it was marked as preliminary: 2,170,000; 20,698,000; and 10%.
270 tab: 6.4; para: Dynasty, arrested

Kenneth Katzman, Iran: U.S. Concerns and Policy Responses, CRS
Report for Congress, Order Code RL32048, Congressional Research
Service, The Library of Congress, 7 March 2005, p. 1.
270 tab: 6.4; para: (MSE)
Comprehensive Report to the Special Advisor to the DCI on Iraq's
WMD, HTML edition posted at https://www.cia.gov/cia/reports
/iraq_wmd_2004 as of 4 August 2006, U.S. Central Intelligence Agency,
30 September 2004, volume 3, chapter 6, “Biological Warfare.”
271 tab: 6.4; para: bomb
Comprehensive Report on Iraq's WMD, HTML edition, chapter 6,
“Biological Warfare,” for the extract about Lt. Gen. Nizar Al Attar. The
italics are per the source, but the double quotes around them were replaced
with single quotes. The bracketed clarification is an addition not per the
source.
271 tab: 6.4; para: Lebanon
Allegations of Connections Between CIA and The Contras in Cocaine
Trafficking to the United States, Report of Investigation 96-0143-IG,
Volume 1, The California Story, online version, 29 January 1998, Investi-
gations Staff, Office of Inspector General, U.S. Central Intelligence
Agency, background section, item 65.
271 tab: 6.4; para: aspect
California Story, background section, item 73.
271 tab: 6.4; para: law
271 tab: 6.4; para: interest
Final Report of Independent Counsel for Iran/Contra Matters, Vol. 1,
Investigations and Prosecutions, Lawrence E. Walsh Independent Counsel,
United States Court of Appeals for the District of Columbia Circuit, Divi-
sion for the Purpose of Appointing Independent Counsel, Division No. 86–
6, online version as posted at http://www.fas.org/irp/offdocs/walsh as of 4
August 2006, dated 4 August 1993, Executive Summary for the appoint-
ment of Walsh. California Story, background section, item 81 for an
investigator's assessment of attention given to the drug trafficking aspect.
272 tab: 6.4; para: 1987
California Story, background section, items 67 and 68.
272 para: thereafter, agencies
272 para: officials
272 para: prosecutions,
273 para: hierarchy
Final Report of Iran/Contra Matters, Vol. 1, Executive Summary.
273 para: problem

Nedra Pickler, “Wright says criticism is attack on black church,” as
accessed 11 November 2008 at http://www.foxnews.com/wires/2008Apr28
/0,4670,ObamaWright,00.html, for the quote “America's chickens are
coming home to roost” from Rev. Jeremiah Wright and said in a sermon
days after the attacks of 11 September 2001. Jeff Karoub, “Obama's
former pastor addresses Detroit NAACP dinner,” as accessed 11
November 2008 at http://www.foxnews.com/wires/2008Apr27
/0,4670,ObamaWright,00.html, for the quote “America's chickens are
coming home to roost” from Rev. Jeremiah Wright Jr. and said days after
the attacks of 11 September 2001.
273 para: majority
Nancy Rytina, “IRCA Legalization Effects: Lawful Permanent Resi-
dence and Naturalization through 2001,” Office of Policy and Planning
Statistics Division, U.S. Immigration and Naturalization Service, 25
October 2002, p. 3 citing Michael D. Hoefer, “Background of U.S. Immi-
gration Policy Reform,” 1991, pp. 17–44 in U.S. Immigration Policy
Reform in the 1980s A Preliminary Assessment, edited by F.L. Rivera-
Batiz, S.L. Sechzer, and I.N. Gang. New York: Praeger, for illegals
numbering from 3 million to 5 million in 1986. “Estimates of the Unau-
thorized Immigrant Population Residing in the United States: 1990 to
2000,” Office of Policy and Planning, U.S. Immigration and Naturalization
Service, p. 6, for illegals numbering 3.5 million in January 1990 and 7.0
million in January 2000, and p. 9 for the Mexico as the leading source of
illegals, supplying 68.7% of illegals in 2000 and 58.3% in 1990. Jeffrey S.
Passel, “The Size and Characteristics of the Unauthorized Migrant Popula-
tion in the U.S.: Estimates Based on the March 2005 Current Population
Survey”, Research Report, Pew Hispanic Center, 7 March 2006, figure 2,
page 3 for a graph developed from various sources showing 4 million in
June 1986 and 11.1 million in 2005. Jeffrey S. Passel, “The Size and
Characteristics of the Unauthorized Migrant Population in the U.S.: Esti-
mates Based on the March 2005 Current Population Survey”, first page for
illegals numbering 11.5–12.0 millions in March 2006.
274 para: Sadat
Jeremy M. Sharp, “U.S. Foreign Aid to Israel,” CRS Report for
Congress, order code RL33222, dated 5 January 2006, Congressional
Research Service, The Library of Congress, summary page about billions
of U.S. dollars in preferential foreign assistance to Israel for many years,
but exceeded by assistance to Iraq circa 2005, the billions of U.S. dollars
to Israel over the years that are for military assistance specifically, the
$2.28 billion to Israel, and the fact that all assistance to Israel for each
fiscal year is delivered within the first 30 days of that fiscal year, and pp.
5–6 for all Economic Support Funds (ESF) to Israel to be paid within the
first 30 days of the new fiscal year or passage of the appropriating act.
Thanks to http://www.opencrs.com for the aforementioned source because
my search on 6 August 2006 with http://firstgovsearch.gov would not
provide the document even though I used the title and reference number.
119 Stat. 2172–2246, for Foreign Operations, Export Financing, and
Related Programs Appropriations Act, 2006, Public Law 109–102, pp.

2191–2 about assistance to Israel, Egypt, and Jordan with the assistance to
Israel to be disbursed with 30 days of enactment. “Al-Zawahiri: Egyptian
militant group joins al Qaeda,” online article, CNN, 5 August 2006, posted
at http://www.cnn.com/2006/WORLD/meast/08/05/zawahiri.tape/index.html
as of 6 August 2006.
276 epi: time
Constitution of the United States, article 1, section 9, clause 6, for the
(first) epigraph but capitalization has been modernized.
276 epi: latter
Letter dated 16 January 1787 from Thomas Jefferson to Edward
Carrington, p. 3 of 4 as documented online by the U.S. Library of
Congress for the (second) epigraph. Thomas Jefferson whilst writing the
letter had yet to be President. In fact Shays' Rebellion was unfinished, and
the U.S. Constitution had yet to be written by several months.
276 para: (CIA)
61 Stat. 495–510, for the National Security Act of 1947 (NSA), the Act
of 26 July 1947, ch. 343.
276 para: direct
61 Stat. 495–510, the NSA, p. 496 for the purpose quoted from sec.
101(a), and p. 497 for the functional loophole inferred by and quoted from
sec. 101(b).
276 para: 15
61 Stat. 495–510, the NSA, p. 499 for the termination of the National
Intelligence Authority (and of the Central Intelligence Group) in sec.
102(f), p. 498 for the purpose quoted from sec. 102(d) and the functional
loophole quoted from sec. 102(d)(5).
277 para: to, transferred
63 Stat. 208–13, for the Central Intelligence Agency Act of 1949, the
Act of 20 June 1949, ch. 227, p. 211 for the quote from sec. 6.
277 para: certified
63 Stat. 208–13, p. 213 for the quote from sec. 10(b).
278 para: 1970
Federal Register, Vol. 35, No. 101 (23 May 1970), pp. 7959–60 for the
Reorganization Plan No. 2 of 1970.
278 para: us
50 U.S.C. 2000 ed. 401 notes, in volume 27, for Executive Order
11905, 18 February 1976 being on record in the Federal Register, Vol. 41,
p. 7703 (abbreviated as 41 F.R. 7703) and a contextual inference that the
executive order may have been the first one to refer to aggressive covert
operations. “President Gerald R. Ford's Executive Order 11905: United
States Foreign Intelligence Activities” Web page accessed 12 November
2008 at http://www.fas.org/irp/offdocs/eo11905.htm, citing Weekly Compi-
lation of Presidential Documents, Vol. 12, No. 8 (23 February 1976) by
President Ford, Executive Order 11905, dated 18 February 1976, para-

graph 2(c) for the definition of ‘special activities in support of national
foreign policy objectives’, and paragraph 4(b)(5) for ‘other special activi-
ties’ within the purview of the CIA. 100 Stat. 3817–4081, for the National
Defense Authorization Act for Fiscal Year 1987, Public Law 99–661, p.
3986 for the establishment of the Board for Low Intensity Conflict, which
should be recognized as a misleading euphemism. 105 Stat. 429–45, for
the Intelligence Authorization Act, Fiscal Year 1991, Public Law 102–88,
p. 443 for the quoted statutory definition of covert action, and pp. 441–5
for the new oversight mechanism generally, basically 50 U.S.C. 413, 413a,
and 413b as added and 414 as amended. L. Britt Snider, The Agency and
the Hill: CIA's Relationship with Congress, 1946–2004 (Washington:
Center for the Study of Intelligence, CIA, 2008), pp. 66–7 for the legisla-
tive response of 1991 to the Iran contra affair, p. 68 for that legislation
defining ‘covert action’ for the first time in statute, p. 68, fnote 39 for
reference to section 503 of the National Security Act of 1947, as amended
(which figures to 105 Stat. 442–4 as described infra), p. 51 for the creation
of the Senate's Select Committee on Intelligence via Senate Resolution
400 on 19 May 1976, p. 53 for the creation of the House's Permanent
Select Committee on Intelligence via House Resolution 658 on 17 July
1977, pp. 59–60 for circumstances surrounding passage of the Intelligence
Oversight Act of 1980 to include the change of Congressional committees
receiving reports about covert actions from 8 to the 2 aforesaid commit-
tees, and p. 63 for Congressional oversight of the ‘reprogramming’ of
appropriated funds made statutory in 1986. Loch Johnson, chapter 2, “The
Liaison Arrangements of the Central Intelligence Agency” in Athan Theo-
haris, ed., The Central Intelligence Agency: Security under Scrutiny (West-
port, Connecticut: Greenwood Press, 2006), p. 86 for presidential findings
defined as written authority for covert actions with the clarification
(including the double quotes): “The president finds that this covert action
is important to the national security of the United States”, and pp. 88–9, w/
figure 2.2, for the the oversight of U.S. intelligence agencies to include the
longstanding oversight of the House and Senate Appropriations subcom-
mittees on intelligence, in addition to the two intelligence committees
providing oversight since 1977. Athan Theoharis, ed., Central Intelligence
Agency, p. 331 for the definition of covert action and for the findings
requirement enacted 15 August 1991 by Public Law 102–88 (cited supra).
50 U.S.C. 414 w/ notes for the ongoing requirement of notification of the
two intelligence committees and the two appropriation committees, origi-
nated by Public Law 99–169. 99 Stat. 1002–11, for the Intelligence
Authorization Act for Fiscal Year 1986, p. 1005 for establishment of over-
sight of intelligence funding by the intelligence and the appropriations
committees of each house, and p. 1011 for the president's signature dating
the act 4 December 1985.
279 para: 1991
113 Stat. 1606–36, for the Intelligence Authorization Act for Fiscal Year
2000, Public Law 106–120, p. 1615 for the reaffirmation, sec. 313, codi-
fied as 50 U.S.C. 403–8 and p. 1636 for the President's signature on 3
December 1999. Report on the U.S. Intelligence Community's Prewar
Intelligence Assessments on Iraq, ordered reported on 7 July 2004, Select

Committee on Intelligence, U.S. Senate, 108th Congress, as downloaded
as Zip file s108-301.zip (default name) on 17 November 2008 from the
“Congressional Reports: Report of the Select Committee on Intelligence
on the U.S. Intelligence Community's Prewar Intelligence Assessments on
Iraq” Web page at http://www.gpoaccess.gov/serialset/creports/iraq.html,
pp. 9, 12–3 for Congressional request of a National Intelligence Estimate
(NIE) on Iraq's programs of weapons of mass destruction and the hurried
fulfillment, p. 14 for the inaccuracy of most of the major key judgments in
the October 2002 NIE, Iraq's Continuing Programs for Weapons of Mass
Destruction due to the mischaracterization of the intelligence, p. 463 for
selectivity from and mischaracterization of intelligence that led the Amer-
ican public to mistakenly believe there was an Iraq-al-Qaeda collaboration
regarding the 9/11 attack. “About the Commission” Web page accessed 20
November 2008 at http://www.wmd.gov/about.html, for the establishment
of the Commission on the Intelligence Capabilities of the United States
Regarding Weapons of Mass Destruction via Executive Order 13328,
signed by President George W. Bush on 6 February 2004, and the end of
the termination of that commission's operations and the close of its office
on 27 May 2005. Contemporarily available via the “DOWNLOAD
ENTIRE REPORT IN PDF FORMAT (3.3 MB)” link of the previous
source, Report to the President of the United States, 31 March 2005, The
Commission on the Intelligence Capabilities of the United States
Regarding Weapons of Mass Destruction, accessed 20 November 2008 at
http://www.wmd.gov/report/wmd_report.pdf, the second page of the report
(or report file), unnumbered and also the first page of the transmittal letter
dated 31 March 2005 from the commission to the President, for the state-
ment: “We conclude that the Intelligence Community was dead wrong in
almost all of its pre-war judgments about Iraq's weapons of mass destruc-
tion.”, and pp. 551–5 for Executive Order 13328, signed by President
George W. Bush on 6 February 2004 and establishing the commission.
Comprehensive Report of the Special Advisor to the DCI on Iraq's WMD, a
report of the findings of the Iraq Survey Group, the original dated 30
September 2004, HTML edition with correction and addenda, Central
Intelligence Agency, as accessed 10 November 2008 from the “DCI
Special Advisor Report on Iraq's WMD” portal Web page at
https://www.cia.gov/library/reports/general-reports-1/iraq_wmd_2004
/index.html, the chapter 4 Web page for the report's statement on nuclear
devices as quoted, the glossary Web page for ISG meaning the Iraq Survey
Group, an organization charged in June 2003 by the (U.S.-led) Coalition in
Iraq to survey Iraq's WMD programs and to locate one Captain Speicher,
and for WMD meaning weapons of mass destruction, possibly nuclear,
chemical, biological, or radiological in nature, the transmittal message
Web page for the submission of the report by Charles Duelfer, Special
Advisor to the Director of Central Intelligence from Baghdad in
September 2004 via a transmittal message dated 23 September 2004, and
the scope note Web page for the report as the findings of the Iraq Survey
Group and for the appointment by the Directory of Central Intelligence
(DCI) of David Kay as the first Special Advisor for Iraqi WMD to direct
the ISG work. The ISG's report on Iraq's WMD was also accessible on 10
November 2008 from GlobalSecurity.org at http://www.globalsecurity.org
/wmd/library/report/2004/isg-final-report/.
279 para: terrorism
Country Profile: Iran, dated May 2008, Library of Congress, as
accessed 29 October 2008 at http://lcweb2.loc.gov/frd/cs/profiles/Iran.pdf, p.
2 about army officer Reza Khan supporting a coup in 1921 against the
government, parliament's deposition of the Qajar dynasty and Reza made
shah going by Reza Shah Pahlavi in 1925, the invasion and removal of
Pahlavi by Britain and the Soviet Union during World War II, the rivalrous
influence of Britain and Russia on Iran during the rule of the Qajar dynasty
from 1795 to 1925, the removal of Mohammad Mossadeq by Britain and
the United States in 1953 (during the Eisenhower presidency), the political
discontent subsequently provoked by the shah, resentment in the late
1970s of increased Western presence, and the return of the Ayatolla
Ruhollah Musavi Khomeini on 1 February 1979 (during the Carter presi-
dency) to lead the revolution. Kenneth Katzman, Iran: U.S. Concerns and
Policy Responses, CRS Report for Congress, Order Code RL32048,
Congressional Research Service, The Library of Congress, 7 March 2005,
pp. 1–2 for the coup launched by Reza Shah in 1921 against the Qajar
Dynasty, his anti-Communist position, the uprising in August 1953 led by
Mohammad Mossadeq that caused the Shah to flee, Mossadeq's popular
support and policy of oil industry nationalization, the Shah's restoration
later in 1953 by a CIA-supported coup, the revolution in 1979 by pro-
Khomeini forces, and the seizure of the U.S. Embassy on 4 November
1979. “Background Note: Iran” Web page, dated March 2008, Bureau of
Near Eastern Affairs, U.S. Department of State, accessed 29 October 2008
at http://www.state.gov/r/pa/ei/bgn/5314.htm, for the discovery of Iranian
(petroleum) oil in 1908. Global Arms Trade: Commerce in Advanced
Military Technology and Weapons, June 1991, report OTA-ISC-460,
Office of Technology Assessment, U.S. Congress, as accessed 10
November 2008 at http://www.fas.org/ota/reports/9122.pdf, p. 17, col. 2 for
the $11 billion in military hardware to Iran from 1969 to 1979 and the
training of over 11,000 Iranian military officers by the United States.
280 para: reply
Report on the U.S. Intelligence Community's Prewar Intelligence
Assessments on Iraq, pp. 239, 247–9 for Secretary Powell's speech and the
objections by a Department of Defense employee.
280 para: reservations
Assessments on Iraq, p. 249 for the extract with the same capitalization as
the source but with the source's wording ‘a sentence of two’ edited as
shown by the bracketed clarification.
280 para: destruction
Rebuilding Iraq, GAO-03-792R, 15 May 2003, accessed 20 November
2008 at http://www.gao.gov/new.items/d03792r.pdf, p. 4 for the launch of
military operations on 19 March 2003 by the United States against Iraq to
disarm the country and topple Saddam Hussein. The “Rebuilding Iraq”
Web page accessed 20 November 2008 at http://www.gao.gov/products
/GAO-03-792R verified that GAO-03-792R is dated 15 May 2003 and
titled ‘Rebuilding Iraq’.
280 para: intelligence, Estimate, utilized, judgments,
281 para: objectivity, personnel, programs
Assessments on Iraq, pp. 14–27 for the seven conclusions regarding
weapons of mass destruction given verbatim, but with intervening text
removed and with the addition of underlining not per the source: I suggest
the solution of revision of the election process to elect different politicians
and to reward better political behavior.
281 para: Islam
Printer friendly “U.S. Secretly Backing Warlords in Somalia” Web page
accessed 28 Oct 2008 at http://www.washingtonpost.com/wp-dyn/content
/article/2006/05/16/AR2006051601625_pf.html, for the news broke by the
Washington Post. “Press Briefing by Tony Snow” Web page accessed 28
Oct 2008 at http://www.whitehouse.gov/news/releases/2006/05/20060517-4
.html, for the kinda-sorta confirmation of the U.S. support of Somalian
warlords against a common enemy.
281 para: time,
282 para: them, stated, needs
Department of Defense: Sustained Leadership Is Critical to Effective
Financial and Business Management Transformation, a prepared state-
ment of testimony by Comptroller General of the United States David M.
Walker, GAO-06-1006T, 3 August 2006, U.S. Government Accountability
Office, p. 7 for none of the military services or major DOD components
have ever passing an independent audit since the first audit as documented
by report GAO/AFMD-90-23 dated 23 February 1990 and the sum of the
Department of Defense's (DOD's) financial management deficiencies
being the longtime single largest obstacle to achieving an unqualified
opinion on the U.S. government's consolidated financial statements, and p.
8 for the second quote. Financial Audit: Air Force Does Not Effectively
Account for Billions of Dollars of Resources, GAO/AFMD-90-23,
February 1990, U.S. General Accounting Office, p. 2 for the Air Force
being the only military service to have tried to prepare a set of meaningful
financial statements, p. 20 for the evaluation having been between July
1987 and January 1990, and p. 39 for the first quote. 2007 Financial
Report of the United States Government, U.S. Department of the Treasury,
pp. 171–3 for the lack of financial accountability from the DOD.
282 para: committees
The online CIA World Factbook, at least of 2008, shows annual GDPs
for the poorest nations amounting to less than a hundred billion U.S.
dollars. The annual cost for the U.S War on Terror is more than a hundred
billion U.S. dollars.
282 para: agree

Is the CIA's Refusal to Cooperate with With Congressional Inquires a
Threat to Effective Oversight of the Operations of the Federal Govern-
ment?, Joint Hearing, 18 July 2001, Serial No. 107–59, U.S. House of
Representatives, made available on the Web at http://www.gpo.gov
/congress/house or http://www.house.gov/reform, pp. 1–2, 4 for the quote
of Rep. Horn.
282 para: gathering,
283 para: well
CIA's Refusal?, pp. 6–7, 8 for the quote of Rep. Shays, but using
‘(CIA)’ and ‘(GAO)’ from p. 8 rather than ‘[CIA]’ and ‘[GAO]’ from pp.
6–7.
284 epi: cheaper
Robert V. Bruce, 1877: Year of Violence (Chicago, Ivan R. Dee, Inc.,
c1989), p. 44 for the epigraph.
284 para: power, today
Representative William Delahunt, discourse of, Congressional Record,
House, daily edition, 11 February 2004, vide ‘Iraq Watch’ from page H508,
p. H511 for the excerpt. By following the “GPO's PDF” link to the right
of ‘[Page: H511]’ on the logically preceding Web page, I was able to get a
PDF copy of page H511 and determine the excerpt was in the first of three
columns; the URL was http://frwebgate.access.gpo.gov/cgi-bin/getpage.cgi
?dbname=2004_record&page=H511&position=all, as accessed on 11
November 2008.
285 para: see
“President Bush: Information Sharing, Patriot Act Vital to Homeland
Security” Web page, a White House press release, 20 April 2004, a tran-
script of remarks by the President about the USA Patriot Act on 20 April
2004 at Kleinshans Music Hall, Buffalo, New York, as accessed accessed
10 November 2008 at http://www.whitehouse.gov/news/releases/2004/04
/20040420-2.html, for the excerpt.
285 para: investors
“Saudi Arabia and the Fight Against Terrorism Financing,” Hearing
Before the Subcommittee on the Middle East and Central Asia of the
Committee on International Relations, House of Representatives 108th
Congress, 2nd Session, 24 March 2004, Serial No. 108–109, p. 49
reprinting an undated Vanity Fair press release “Former Counterterrorism
Czar Tells Vanity Fair How Bin Ladens and Other Saudis Were Cleared to
Fly Out of U.S. After September 11; Government Officials Deny Flights
Ever Took Place” for the excerpt that has been altered by insertion of the
bracketed clarification. The record of the hearing, obtained circa 14 July
2006 as a PDF file, indicates it is available at http:/www.house.gov
/international_relations. I was able to find an HTML version on 10
November 2008 by following the “hfa92744.000” link on the “Hearing
Index Page” Web page at http://commdocs.house.gov/committees/intlrel
/index.htm to the “SAUDI ARABIA AND THE FIGHT AGAINST
TERRORISM FINANCING”, vide Page 118. Cf. Report on the U.S.

Intelligence Community's Prewar Intelligence Assessments on Iraq,
ordered reported on 7 July 2004, Select Committee on Intelligence, U.S.
Senate, 108th Congress, as downloaded as Zip file s108-301.zip (default
name) on 17 November 2008 from the “Congressional Reports: Report of
the Select Committee on Intelligence on the U.S. Intelligence Communi-
ty's Prewar Intelligence Assessments on Iraq” Web page at
http://www.gpoaccess.gov/serialset/creports/iraq.html, pp. 248, 332, 455
about the reporting of Vanity Fair.
285 para: country,
286 para: 2000, 2000
Representative Sherrod Brown, “Russia's Policies Toward the Axis of
Evil: Money and Geopolitics in Iraq and Iran”, Hearing Before the
Committee on International Relations House of Representatives, 108th
Congress, 1st Session, 26 February 2003, Serial No. 108–6, vide Page 3
for Sherrod Brown of Ohio, and vide Page 36 for the excerpt. The source
was accessed by following the “hfa85339.000” link on the “Hearing Index
Page” Web page at http://commdocs.house.gov/committees/intlrel
/index.htm.
286 para: fees
“Halliburton's Questioned and Unsupported Costs in Iraq Exceed $1.4
Billion”, Joint Report Prepared for: Rep. Henry A. Waxman and Sen.
Byron L. Dorgan, June 27, 2005, Special Investigations Division,
(Democrats') Minority Staff, Committee on Government Reform, U.S.
House of Representatives and Democratic Policy Committee, U.S. Senate,
downloaded circa 15 May 2006, p. 23 for the excerpt. I did not record the
URL I used in 2006 to download a PDF version. The cover page indicates
the report is or was available at http://www.democrats.reform.house.gov
and at http://democrats.senate.gov/dpc. By going to those websites and
searching on ‘Halliburton's Questioned’ on 10 November 2008, I was able
to find a virtually similar copy and an identical copy, going by the byte
counts, located at http://oversight.house.gov/documents/20060328143627-
51409.pdf and http://democrats.senate.gov/dpc/hearings/hearing22
/jointreport.pdf respectively.
286 para: attempt,
287 para: 1995
“The Attack That Failed: Iraq's Attempt to Assassinate Former President
Bush in Kuwait, April 1993”, a declassified U.S. Government paper, Case
Number F-1998-00302, estimated publish date 25 February 1997, release
date 5 April 2002, downloaded from the CIA website ( www.cia.gov) circa
15 May 2006, pp. 2–3, 6 for the respective excerpts. I was able to retrieve
the same document, but without header information indicating the case
number, on 10 November 2008 by (1) directing my browser to “FOIA
Electronic Reading Room” Web page accessed 10 November 2008 at
http://www.foia.cia.gov/, (2) entering the text ‘The Attack That Failed:
Iraq's Attempt’ in the text box labeled ‘Search Declassified Docs’ and
performing the search, and (3) following the “(ESTIMATED DATE) THE
ATTACK THAT FAILED: IRAQ'S ATTEMPT TO ASSASSINATE
FORMER P” link.
288 para: Ex-lax
Helen Chapin Metz, ed., Iraq: A Country Study, online HTML version
of 4th ed (Washington, D.C.: Federal Research Division, Library of
Congress), research completed May 1988, as accessed via the “A Country
Study: Iraq” portal Web page on 11 November 2008 at
http://lcweb2.loc.gov/frd/cs/iqtoc.html, chap. 1, subch.(?) 9, “The Iran-Iraq
Conflict,” for the start of the Iran-Iraq War on 23 September 1980, chap. 5,
subch.(?) 4, section(?) 3, “Arms from the Soviet Union,” for the delivery
in early 1987 of 24 Mig-29 Fulcrums, the most advance Soviet fighter, and
for the competition between the Soviet Union and France for arms sales to
Iraq, and chap. 3, subch.(?) 1, “Growth and Structure of the Economy,”
note footer stating ‘Data as of May 1988’, for Iraq owing more than $1.35
billion to France for weapons, owing an estimated $5 billion in 1987 to the
Soviet Union for benefits not specified, and owing ‘about $30 billion to
Saudi Arabia, Kuwait, and the other Gulf states’ in 1986. The World Fact-
book 2007, CIA, downloaded 7 April 2008 as a Zip file from the download
Web page at https://www.cia.gov/library/publications/download/download-
2007/index.html, vide the Iraq and Iran entries, for the war from 1980 to
1988 not mentioned by name. Robert Looney, “Bean Counting in
Baghdad: Debt, Reparations, Reconstruction, and Resources,” Strategic
Insight, 2 June 2003, as accessed 10 November 2008 in HTML form at
http://www.ccc.nps.navy.mil/rsepResources/si/june03/middleEast.asp and
in PDF form at http://www.ccc.nps.navy.mil/rsepResources/si/june03
/middleEast.pdf, vide ‘The Debt Trap’, for military loans to Iraq for her
war with Iran 1980–88, from the Gulf States amounting to $37 billion of
which was $17 billion from Kuwait, from France largely for F1 fighters
and Exocet air-to-surface missiles, and Russia (Soviet Union) for MIG
fighters and helicopters. Jubilee Iraq's “Saddam's Debts (latest estimates)”
Web page accessed 11 November 2008 at http://www.jubileeiraq.org
/debt_today.htm, for a compilation of estimated debts incurred by
Saddam's Iraq by creditor country from the imperfect sources available,
with their dates because interest accrues, including (in billions of U.S.
dollars): Kuwait, $17 in 1992, $27 in 2003; Qatar, $4 in 2004; Saudi
Arabia, $25 in 2002, $30 in 2004, UAE (United Arab Emirates), $3.8 in
2004. Found via the Jubilee Iraq “Saddam's Debts (latest estimates)” Web
page, “A WISER PEACE: AN ACTION STRATEGY FOR A POST-
CONFLICT IRAQ” PDF file from CSIS accessed 11 November 2008 at
http://www.mafhoum.com/press4/130P511.pdf, citing David Chance,
“Regime Change Could Benefit Iraqi Creditors,” Reuters News Wire, 13
September 2002, for the estimate by the World Bank and the Bank for
International Settlements of a total Iraqi debt for the year 2001 of $127.7
billion, including $47 billion in accrued interest.
So here is my calculation to guess what military loans Saddam got from
the four Gulf States specified: The ratio 47/80.7 multiplied by the
outstanding debt in 2001 would approximate the original loan; for Kuwait
47/80 x $27 billion = $15.7 billion, but interest that would accrue from
2001 to 2004 should be subtracted and it should be less than $17 billion in
1992; for Saudi Arabia 47/80.7 x $25 billion = $14.6 billion; for Qatar and
UAE 47/80.7 x ($4 billion + $3.8 billion) = $4.5 billion, but interest would
accrue from 2001 to 2004; hence, in the absence of better bullshit, which is
what academics mean by guesstimate, $15.7 - $3 + $14.6 + ($4 + $3.8) -
$1 = $34.1, which rounds to $34, billion, of course.
Mark A. Heller, “Turmoil In The Gulf,” New Republic, Vol. 190, No.
16, Issue 3,614 (sic) (23 April 1984), p. 18, col. 2 for most estimates of
assistance from the Arab Gulf states ranging from $20 to $30 billion, but
note the publication date and consider the range a lower bound. The
Jubilee Iraq Web page also for an itemized list of debt claims on Iraq
issued by the Paris Club on 10 July 2003 and totaling $21 billion exclusive
of interest. Martin A. Weiss, Iraq's Debt Relief: Procedure and Potential
Implications for International Debt Relief, CRS Report RL33376,
Congressional Research Service (CRS), The Library of Congress, dated 2
October 2008, as accessed on 11 November 2008 at http://www.fas.org
/sgp/crs/mideast/RL33376.pdf, pp. 2–3 for Paris Club debt owed by Iraq
and exclusive of interest totaling $20,917.9 million, the top 5 of which in
descending order were (in millions of U.S. dollars): Japan with $4,108.6,
Russia with $3,450.0, France with $2,993.7, Germany with $2,303.9,
United States with $2,192.0, and Italy with $1,726.0; the IMF (Interna-
tional Monetary Fund) as the only definitive source for non-Paris Club
debt and not having made an itemized record of the Iraqi debt owed by
country; and the loans made by the United States having been the sale of
U.S. agricultural products on credit backed by loan guarantees made from
1983 to 1993 by the U.S. Department of Agriculture, who of course paid
off the farmers and/or agricultural business as the case may have been and
assumed the debt. L. Britt Snider, The Agency and the Hill: CIA's Rela-
tionship with Congress, 1946–2004 (Washington: Center for the Study of
Intelligence, CIA, 2008), p. 51 for the Senate Select Committee on Intelli-
gence (SSCI), and p 243 for the SSCI investigation of 1992–1993
regarding defense allegations of covert U.S. operations as the reason for
more than $4 billion in unauthorized loans from the U.S. Government to
Iraq in a federal case of bank fraud concerning an employee of Banca
Nazionale del Lavoro (BNL). Office of Technology Assessment, U.S.
Congress, Global Arms Trade: Commerce in Advanced Military Tech-
nology and Weapons, report OTA-ISC-460, dated June 1991, U.S. Govern-
ment Printing Office, as accessed 10 November 2008 at http://www.fas.org
/ota/reports/9122.pdf, p. 24, table 1–5 for a list of French weaponry
supplied to Iraq 1981–88, and p. 19, table 1–3 for a list of weaponry
supplied to Iraq 1982–89 by Brazil, China, and Egypt. Found via Global
Arms Trade, p. 18 was U.S. Arms Control and Disarmament Agency, U.S.
Government, World Military Expenditures and Arms Transfers 1990
(Washington: U.S. Government Printing Office, November 1991, reprinted
1992), table II, pp. 89–130 for data on the yearly arms imports 1979–1989
by country used to calculate totals for the years 1980–1988. The organiza-
tion responsible for the content of the aforementioned source shall be
abbreviated as ACDA. The aforementioned source shall be abbreviated,
exclusive of year, as WMEAT. The WMEATs of years 1985–1990 do not
indicate if or how the ACDA fit into the hierarchy of the U.S. Government,
but it seems the publisher was the U.S. Government Printing Office, which
shall be abbreviated GPO.
The calculation of a third is done in current (or unadjusted) dollars from
data of the WMEAT of various years, which adds to the roughness.
ACDA, WMEAT 1985 (Washington?: GPO, August 1985), table III, pp.
131–4 for data on the cumulative arms imports 1979–1983 in millions of
current (U.S.) dollars by major suppliers and by recipient country: Saudi
Arabia received $5,100 of its $12,125 from the United States. ACDA,
WMEAT 1989 (Washington: GPO, October 1990), table III, pp. 115–8 for
data on the cumulative arms imports 1984–1988 in millions of current
(U.S.) dollars by major suppliers and by recipient country: Saudi Arabia
received $5,800 of its $19,530 from the United States. WMEAT 1990,
table II, p. 121 for arm imports into Saudi Arabia from anywhere in 1979
in millions of current (U.S.) dollars of $1,200. For the years 1979–1988,
Saudi Arabia had arms imports of $31,655 million, of which $10,900
million came from the United States. For the years 1980–1988, Saudi
Arabia had, in millions, arms imports of $31,655 - $1,200 = $30,455, of
which at most $10,900 came from the United States and at least $10,900 -
$1,200 = $9,700. Based on the data, for the years 1980–1988 not more
than 36 percent and not less than 32 percent of Saudi Arabia's total arms
imports came from the United States. The same calculation in constant
1989 U.S. dollars (real terms) need not have the same result, but there
must be some degree of correlation inversely related to the degree of U.S.
dollar inflation: e.g. roughly a third. For those independent thinkers out
there, U.S. arms exports in 1979 in current (U.S.) dollars were $5,900, and
of course the smaller $1,200 is more useful.
Craig Unger, “Saving the Saudis,” Vanity Fair, no volume specification
found, No. 518 (October 2003), p. 162, col. 1 and again p. 164, col. 3 for
15 of the 19 hijackers having been Saudis.
288 para: accruing
Metz, ed., Iraq: A Country Study, chap. 3, subch.(?) 2, “The Role of
Government,” for the high Iraqi government expenditures in the 1970s
supported by high oil prices and the change with the Iran-Iraq War to
limited resources and deficit spending, and chap. 3, subch.(?) 1, “Growth
and Structure of the Economy,” for total Iraqi GDP that ‘could only be
estimated in the 1980s’ (permitting the hope of developing accurate figures
in the 1990s), nominal Iraqi GDP that shrank ‘from about US$20 billion to
US$18 billion, an indication of high wartime inflation’ (of the U.S dollar
or the Iraqi dinar?), the drop in Iraqi GDP to $18 billion in 1983, the Iraqi
GDP of $35 billion in 1986, and the total Iraqi debt in 1986 estimated to
have been $50 billion to $80 billion. Robert Looney, “Bean Counting,”
vide ‘Introduction’, for Iraq, a donor and creditor country, as one of the
most promising countries in the Middle East and the developing world,
having a growing middle class and the beginnings of a modern industrial
sector, and poised for rapid economic advance, vide ‘The Debt Trap’, for
the impossibility of Iraq paying her debts, the comparative history
supporting that fact, and the absence of an attempt by Iraq to service debts
in the 1990s. Comprehensive Report of the Special Advisor to the DCI on
Iraq's WMD, a report of the findings of the Iraq Survey Group, the original
dated 30 September 2004, HTML edition with correction and addenda,
Central Intelligence Agency, as accessed 10 November 2008 from the
“DCI Special Advisor Report on Iraq's WMD” portal Web page at
https://www.cia.gov/library/reports/general-reports-1/iraq_wmd_2004
/index.html, the chapter 2 Web page for Iraq having been without foreign
debt and with $35 billion in foreign (currencies?) reserves by (in?) 1980
that were adequate only for the opening salvos of the Iran-Iraq War which
over nine years cost an estimated $54.7 billion in arms purchases alone,
Saddam never having paid off his short-term debts to Western creditors
estimated at $35 billion to $45 billion, and the Iraqi economic crisis that
developed by the late 1980s.
288 para: Laden
Coy R. Cross II, 9th Reconnaissance Wing Historian, The Dragon Lady
Meets the Challenge: The U-2 in Desert Storm, as accessed 15 November
2008 via the “The Dragon Lady Meets the Challenge: The U-2 in Desert
Storm” portal Web page at http://www.fas.org/irp/program/collect/u2ds
/index.html, the “Chapter 1” Web page for Saddam's claim to the Shatt al
Arab waterway as motive to start the Iran-Iraq War, Saddam's dictatorial
demands of Kuwait in 1990 including debt forgiveness on loans of
between $12 billion and $15 billion, negotiators representing Saudi Arabia,
Jordan, and Egypt flying to Baghdad to allay Saddam's ire, and the subse-
quent invasion a few days later on 2 August 1990, and the “Chapter 2”
Web page for King Fahd of Saudi Arabia asking or agreeing to the protec-
tive deployment of U.S. troops within his country on August 6th. Agricul-
tural Loan Guarantees, GAO/GGD-94-24, dated October 1993, U.S.
General Accounting Office (GAO), accessed 17 November 2008 at
http://archive.gao.gov/t2pbat4/150515.pdf, pp. 24–5 w/ fnote 2 for the Iraqi
invasion of Kuwait on 2 August 1990 and the issue of Executive Order
#12722, freezing Iraqi government property in the United States and
prohibiting grants and loans from the United States to the Iraqi Govern-
ment. Federal Register, Vol. 55, No. 150, (3 August 1990), pp. 31803–4
(abbreviated as 55 FR 31803) for “Blocking Iraqi Government Property
and Prohibiting Transactions with Iraq,” Executive Order 12722, signed by
President Bush and dated 2 August 1990. “Usama Bin Ladin (Osama Bin
Laden)” Web page accessed 17 November 2008 at
http://www.globalsecurity.org/military/world/para/ubl.htm, for the Osama bin
Laden's disgust with the influence of Western culture in Saudi Arabia upon
his return after the Soviet-Afghan War, Osama's rage at the Saudi invita-
tion to place U.S. troops in Saudi Arabia for defense against Iraq that he
considered a sacrilegious arrangement, Osama's rejected proposal to use
his resources and mujahaddin friends to protect Saudi Arabia, his repeated
diatribes against the Saudi Government, and the revocation of Osama's
Saudi citizenship in 1994. Christopher M. Blanchard, Al Qaeda: State-
ments and Evolving Ideology, dated 20 June 2005, Congressional Research
Service (CRS) report RL32759, CRS, Library of Congress, p. 2 w/ fnote 5
citing Robert Frisk, “Interview With Saudi Dissident Bin Ladin,” Indepen-
dent (London), 10 July 1996, for Osama Bin Laden's public criticism of
the Saudi royal family for their invitation to accommodate U.S. troops as a
betray of the global Islamic community.
288 para: bluster
Weiss, Iraq's Debt Relief, CRS Report RL33376, p. 2 for the loans
made by the United States having been the sale of U.S. agricultural prod-
ucts on credit backed by loan guarantees made from 1983 to 1993 by the
U.S. Department of Agriculture, the default on it in 1991, and the debt
valued at $4.1 billion at the end of Saddam's regime, and p. 7 for the full
debt forgiveness by the United States on 17 December 2004. “President
Bush Addresses Nation on the Capture of Saddam Hussein,” remarks of
the President from the Cabinet Room in the West Wing of the White
House, dated 14 December 2003, accessed 15 November 2008 at
the President's announcement that Saddam was captured 13 December
2003 at approximately 8:30 p.m., Baghdad time. “Capture of Saddam
Hussein” Web page accessed 15 November 2008 at
http://www.state.gov/s/wci/us_releases/rm/36209.htm, for the same tran-
script of the President's announcement of the capture of Saddam Hussein
on 13 December 2003. Marc Sageman, “Understanding Jihadi Networks,”
Strategic Insight, Vol. 4, No. 4 (April 2003), as accessed 15 November
2008 in HTML form at http://www.ccc.nps.navy.mil/si/2005/Apr
/sagemanApr05.asp and in PDF form at http://www.ccc.nps.navy.mil/si
/2005/Apr/sagemanApr05.pdf, vide ‘References’, endnote 4, for the cita-
tion: “Bin Laden, Osama, Declaration of War against the Americans
Occupying the Land of the Two Holy Places. Published in al-Quds al-
Arabi (London, 1996) on August 23.” “Saudi Arabia: International Reli-
gious Freedom Report 2008” Web page, Bureau of Democracy, Human
Rights and Labor, U.S. Department of State, as accessed 16 November
2008 at http://www.state.gov/g/drl/rls/irf/2008/108492.htm, for the King's
official title, “Custodian of the Two Holy Mosques.” “Background Note:
Saudi Arabia,” Web page, dated February 2008, Bureau of Near Eastern
Affairs, accessed on 29 October 2008 at http://www.state.gov/r/pa/ei/bgn
/3584.htm, for King Fahd of Saudi Arabia using ‘his influence as Custo-
dian of the Two Holy Mosques’ 1990–91 and contemporary to the date of
publication the titles of King, Prime Minister, and Custodian of the Two
Holy Mosques vested in King Abdallah bin Abd al-Aziz Al Saud. “The
Attack That Failed”, Case Number F-1998-00302, pp. 5, 26–7 for the
thwarting on 14 April 1993 of coordination for an attempt to assassinate
former President Bush. “Hussein executed with ‘fear in his face’” Web
page, an article posted 4:44 a.m. EST, 30 December 2006, using contribu-
tions from Aneesh Raman, Arwa Damon, Ryan Chilcote, Sam Dagher,
Jomana Karadsheh, and Ed Henry, accessed 16 November 2008 at
http://www.cnn.com/2006/WORLD/meast/12/29/hussein/index.html, for the
report on Iraqi state television Al-Iraqiya of the execution of Saddam
Hussein by hanging before dawn, shortly after 6 a.m., on Saturday, and
shortly after 10 p.m. on Friday ET in the United States at the 5th Division
intelligence office in Qadhimiya, just outside the Green Zone and without
the presence of Americans: “It was an Iraqi operation from A to Z.”
“Encylopedia > Kadhimiya” Web page accessed 19 November 2008 at

http://www.nationmaster.com/encyclopedia/Kadhimiya, for Kadhimiya, also
spelled as Kazimain or Al-Kazimiyah, being a town that has become a
northern neighborhood in Baghdad, Iraq—no doubt as easily spelled
Qadhimiya, and thus Qadhimiya is in Baghdad. Heller, “Turmoil in the
Gulf,” p. 17, col. 1 for the name Saddam Hussein al-Tikriti, and p. 16, col.
2 for ‘the Sunni-dominated Baathist regime espousing secular Arab nation-
alism.’ Metz, ed., Iraq: A Country Study, chap. 1, subch.(?) 8, “The Emer-
gence of Saddam Husayn,” for the dominance within the Baath Party
ruling Iraq starting in 1970 or so by Tikritis, Sunna Arabs from Tikrit, and
before chapter 1 the section “Government and Politics” for the Baath Party
meaning, perhaps literally, the Arab Socialist Resurrection Party.
Saddam Hussein was a murderous socialist, an Arab national leveraging
Tikriti tribal connections. The totalitarian Baathist regime in Iraq repre-
sented a step the Middle East could have taken closer to compatibility with
the secularly governed West. Without farce the United States could have
had a public, domestically controlled trial with an open invitation to
Saddam to send his legal representation. To have unilaterally induced the
Baathists to deliver or yield Saddam Hussein to the United States would
have been infinitely better than to have usurped indigenous onus of the
Middle East for their diminutive standing or indigent afflictions, to require
of a people disposed to the regulation and rectitude of Islam a working
competency with the highest known form of government and civic sophis-
tication ever achieved by mankind for our own well-being, and to justify
an increasing enormity of sacrifice to America's economic security with
the worst leverage that only the world's lone superpower could have unilat-
erally secured. If the soldiers that the U.S. President sends need to wear
camouflaged combat uniforms and carry assault rifles to hand out candy,
the candy is superfluous. Wouldn't the election of Osama bin Laden to the
Iraqi presidency be something, for example.
120 Stat. 3327, for Joint Resolution Appointing the day for the
convening of the first session of the One Hundred Tenth Congress., Public
Law 109–447, for the beginning of the 1st session of the 110th Congress
enacted to be noon on Thursday, 4 January 2007 (superseding the default
of noon on Wednesday, 3 January 2007 specified by the 20th Amendment
of the U.S. Constitution). Lorraine C. Miller, Clerk of the House of Repre-
sentatives, compiler, Official List of Members of the House of Representa-
tives of the United States and Their Places of Residence, 110th Congress, 1
October 2008, as accessed 15 November 2008 at http://clerk.house.gov
/member_info/olm_110.pdf, p. 114 for the political party divisions of the
U.S. House determined by the 2004 election as 202 Democrats, 232
Republicans, and 1 other and by the 2006 election as 233 Democrats, 202
Republicans, and no others and of the U.S. Senate determined by the 2004
election as 44 Democrats, 55 Republicans, and 1 other and by the 2006
election as 49 Democrats, 49 Republicans, and 2 others, and p. 13 for the
identity of 2 other Senator slated for the 110 Congress after the 2006 elec-
tion results as Independents Joseph I. Lieberman (the former Democrat)
and Bernard Sanders (having an affinity with Democrats) of Vermont.
“House History Timeline” Web page accessed 15 November 2008 at
http://clerk.house.gov/art_history/timeline/xml/2000events.xml, also for the
history of political divisions of the U.S. House per election results. The
Clerk of the House provides important material on the House website for
we the people who theoretically are the government; the Senate could
perhaps use encouragement to follow suit with their website; the analo-
gous position is the Secretary of the Senate. Brian Knowlton, “Democrats
take control of Congress,” dated 4 January 2007, International Herald
Tribune, page 1 of 2, as accessed 15 November 2008 at http://www.iht.com
/articles/2007/01/04/news/dems.php, for the Democrats regaining control
of both houses on Thursday (4 January 2007) (and having control) for the
first time since 1994 and Senator Harry Reid of Nevada succeeding
(former Senator) Bill Frist of Tennessee as the Senate majority leader,
which demonstrates Democrat control of the Senate. “Legislative Day of
January 4, 2007, 110th Congress - First Session” Web page, as accessed 15
November 2008 at http://clerk.house.gov/floorsummary/floor.html
?day=20070104&today=20081115, for the House's roll call 2 at 1:43 p.m.
on 4 January 2007, resulting in the election of Pelosi as Speaker with 233
votes over Boehmer with 202 votes.
Chapter 7: Restoring Sanity to Policy

289 epi: pleasing
“Carlyle's Works,” Southern Quarterly Review, Vol. 14, No. 27 (July
1848), p. 81 for the quote on natural form.
289 para: thyself
The Yoda quote comes from the Star War film The Empire Strikes Back.
The advice of Socrates is thought to originate from the inscription on
Apollo's Oracle at Delphi, Greece.
291 para: code
tax guide for Churches and Religious Organizations: benefits and
responsibilities under the federal tax law, Publication 1828 (Rev. 6-2008),
Internal Revenue Service (IRS), accessed 26 May 2009 at
http://www.irs.gov/pub/irs-pdf/p1828.pdf, p. 7 for the potential revocation of
tax-exempt status for campaign bias, and the 2nd page (unnumbered) for
the source documenting an interpretation of tax law by the IRS, which they
should expound and for which they should be commended.
293 epi: people
“Capital and Labor,” Democratic Review, Vol. 25, No. 137 (November
1849), pp. 388–9.
295 epi: themselves
Andrew Carnegie, “Wealth,” North American Review, Vol. 148, No. 391
(June 1889), p. 662 for epigraph.
295 epi: selfishness
Allen Nevins, The Emergence of Modern America, 1865-1878 (New
York: The MacMillan Company, c1927), p. 376 for epigram but the clarifi-
cation in brackets has been added.
296 para: digress

26 U.S.C. 3101 for the codification of the Social Security tax rate; cf.
table 5.6 on page 231 supra. Robert D. Putnam, Bowling Alone: The
Collapse and Revival of American Community (New York: Simon &
Schuster, 2000), passim for the decline of ‘social capital’. R. W. Hafer,
The Federal Reserve System: An Encyclopedia (Westport, Connecticut:
Greenwood Press, 2005), pp. 184–5, 398–9 for a sketch of the history of
Fed monetary policy to include the change made by Alan Greenspan in
July 1993. Review, Vol. 88, No. 1 (January–February 2006), from the
Federal Reserve Bank of St. Louis, as accessed on 23 September 2008 at
http://research.stlouisfed.org/publications/review/06/01/ChomPennCross.pd
f, pp. 31–2 for the correlation of subprime mortgage borrowers with the
poor and with minorities, pp. 36–7 for the correlation of subprime refi-
nancing with blacks and prime refinancing with non-blacks, p. 38 for the
legalization of subprime lending in the United States in 1980 and of
adjustable rates in 1982 and the tax code structure conducive enabling a
subprime mortgage market in circa 1986, and p. 38, col. 2 and p. 41, col 1
for the popularization of subprime mortgage lending after 1995 (so begin-
ning in 1996) by the change of focus of the banking sector from prime to
subprime lending. Ben S. Bernanke,“Ben S Bernanke: The subprime
mortgage market,” a transcript of remarks by Fed Chairman Ben Bernanke
at the Federal Reserve Bank of Chicago's 43rd Annual Conference on
Bank Structure and Competition in Chicago on 17 May 2007, as accessed
from the website of the Bank of International Settlements on 23 September
2008 at http://www.bis.org/review/r070522a.pdf, p. 1 for the earnest expan-
sion of subprime mortgage lending in the mid 1990s and for Bernanke's
remark: “The increase in homeownership has been broadly based, but
minority households and households in lower-income census tracts have
recorded some of the largest gains in percentage terms.” To avoid pedantic
redundancy in the main text without losing completeness for the record,
another illustrative historical sequence based upon similar ingredients is:
World War I, Wilsonism, Jazz Age, Great Depression, World War II, Holo-
caust -> (a) Creation of Israel, Middle East conflict, Islamic Terrorism,
Gulf Wars, and (b) United Nations, New World Order, Global Warming ->
political correctness, materialism, bank bailouts, government deficit
spending, Border Patrol Agents Ignancio Ramos and Jose Compean, save
the world per so-called liberalism vs. westernize the Middle East per so-
called conservatives, *x*x* [insert your life here].
I hypothesis that the political subjection of women at large is a natural
requirement. I did not say subjugation, and I did say at large, meaning in
general but with exception. I am saying that the political equality of
women is not only the subjugation of men but a social characteristic unfit
to natural selection. Subjection of women is traditional because without it
and without an ameliorating technological luxury society will immediately
succumb to natural selection. Amazon women?, never happened. Tech-
nology only affords the luxury of delay by providing a larger and richer
society to be mismanaged and consumed. It also requires that the negative
consequences will be a (wo)man-made systemic calamity of nations rather
than a natural selective failure of band or tribe regimented by mystical
ecology. Of course, to say what humanity does is unnatural is to presume

the rise of human dominance is somehow beyond the scope of a nature
with arms as wide as the universe and patience for all time, but you get the
point: more communal bang for the buck, a lump-sum payment bypassing
derelict people and peoples basking in corruption and incompetence for a
time.
296 para: Age
ETDs is an abbreviation of ‘economically transmitted diseases’.
298 epi: News, out
Stephen Colbert at the 2006 White House Correspondents' Association
Dinner held 29 April 2006 in Washington, D.C. made the remarks quoted
for the two epigraphs. My Web search of 12 February 2009 found what
should have been definitive accounts, but of what I could readily find only
Wikipedia was explicit with 29 April 2006 (as opposed to just ‘Saturday’
and an article date, if anything), and only Wikipedia identified the location
in Washington as the hotel Hilton Washington.
299 para: security
The double quotes originally surrounding ‘beneficial owner’ were
replaced with single quotes.
299 para: family
Bob Woodward relates a secret meeting circa late 1990 between E.
Gerald Corrigan, President of the Federal Reserve Bank of New York, and
Prince Alwaleed bin Talal to negotiate the Prince's purchase of an addi-
tional $1.2 billion in stock of troubled Citibank. Bob Woodward,
Maestro: Greenspan's Fed and the American Boom (New York: Simon &
Schuster, c2000), pp. 38, 72–3.
301 epi: life
Benis M. Frank, U.S. Marines in Lebanon, 1982–1984 (Washington,
D.C.: History and Museums Division, Headquarters, U.S. Marine Corps,
1987), p. 99, col. 2 for the epigraph sans bracketed clarification. Edwin H.
Simmons, foreword in Frank, U.S. Marines, p. iii for the meaning of
acronym MAU and for Benis Frank's service as a U.S. Marine and work as
a historian on the subject of the U.S. Marines.
301 epi: bullies
“President Sworn-In to Second Term” Web page, a transcript of Presi-
dent Bush's second inaugural address, dated 20 January 2005, as accessed
16 November 2008 at http://www.whitehouse.gov/news/releases/2005/01
/20050120-1.html, for the 2nd epigraph.
302 para: 1992
The bracketed correction is not per the source.
303 para: else
Charles J. Adams, “Islam,” EA–99, vol. 15, p. 491, col. 1 about Islam
being an Arabic word that may be translated ‘submission’, ‘surrender’, or
‘commitment’, and p. 499, col. 2 about sharia as the common word for
Islamic law that originally meant ‘pathway’ and may be translated as ‘the
path in which God wishes men to walk,’ and the sharia's comprehensive
regulation of religious, political, social, and private aspects of Muslim life.
Random House Webster's Unabridged Dictionary, 2nd edition, (New York:
Random House Reference, c2001), p. 179, col. 3 w/ p. xxvi for shari'ah,
also shari'a, being an English word having context in Islam, directly
descended or borrowed from Arabic, and meaning law, as derived from the
Koran, hadith, ijma', and qiyas. The design of the Afghan flag was found,
and that of the Saudi flag was reaffirmed, on 9 September 2008 from the
CIA's online The 2008 World Factbook.
306 epi: disappearing
Congressional Record, House, daily edition, 2 February 2005, vide
‘Missing $9 Billion in Iraq’, p. H290 for the epigraph from Kucinich.
306 para: is, people, hazardous
Constitution of the United States, article 3, section 3, clause 1, but capi-
talization modernized. 'Abdullah Yūsuf 'Alī, trans. (and author of intro-
ductory and supporting commentary), The Meaning of the Holy Qur'ān,
10th ed., eds. Ismā'īl Rājī al Fārūqī et al. (Beltsville, Maryland: Amana
Publications, 2003, reprint of 1999), pp. 212–3 for the translation of the
Quran 4:89–90 about exclusive friendship, capital punishment of apostasy,
etc, but with the style changed from stanzas to regular prose by removal of
line breaks and associated capitalization, p. xx about English Muslim and
translator of the Quran Marmaduke Pickthall who described the Arabic
Text as the ‘inimitable symphony the very sounds of which move men to
tears and ecstasy,’ and p. xii (w/ p. xxiv for a definition of Qirā'ah) and p.
126, fnote 344 about the variance in the demarcation of verses in the
Quran (necessarily written in Arabic) and to a greater degree in transla-
tions of the Quran. A. J. Arberry, trans. (and author of introductory
commentary), The Koran Interpreted (New York: Simon & Schuster Inc.,
1996), vol. 1, p. 20 for the same quote of Marmaduke Pickthall about
inimitable symphony, tears and ecstacy but within a larger excerpt and
putting a comma between ‘symphony’ and ‘the very sounds’, p. 24 about
the orthodox Muslim view that the Koran in untranslatable, and the ‘highly
emotive’ and inimitable rhetoric and rhythm of the Arabic of the Koran, p.
25 about division of verses by rhyming words, and p. 113 for an alterna-
tive translation, but indicative of the Koran 4:91–2, that reads:
They wish that you should disbelieve as they disbelieve, and then
you would be equal; therefore take not to yourselves friends of them,
until they emigrate in the way of God; then, if they turn their backs,
take them, and slay them wherever you find them; take not to your-
selves any one of them as friend or helper except those that betake
themselves to a people who are joined with you by a compact, or
come to you with breasts constricted from fighting with you or
fighting their people.
Seyyed Hossein Nasr, A Young Muslim's Guide to the Modern World, 2nd
ed. (Chicago: KAZI Publications, Inc., c1994), p. 10 about the Noble
Quran as a sonorous revelation deeply moving Muslims who understand
Arabic and Muslims that don't upon hearing the words of the Quran
spoken or chanted and about the counting of verses as the subject of the
Quranic science ihsā', and p. 11 about the Quran as divine language of
incomparable eloquence that no human could ever match.
According to WorldNetDaily, a free online press located at
http://www.worldnetdaily.com, The Meaning of the Holy Qur'ān was being
distributed circa 2005 as part of the “Explore the Quran” program by the
Council on American-Islamic Relations (CAIR) and funded in part by a
$500,000 donation from Saudi Prince Alwaleed bin Talal. I discovered the
book in February 2008 by noticing the large, gild-on-green spine of a copy
in seemingly new condition in my local library. It was printed in Mexico
and donated to the library by CAIR in September 2003. It appears to me
the work is scholarly and thorough. Thus, The Meaning of the Holy
Qur'ān is a definitive representation in the English language of orthodox
Islam in Saudi Arabia. Art Moore, “CAIR distributes Quran banned as
anti-Semitic: Version offered for free as goodwill response to Newsweek
fiasco,” WorldNetDaily, posted 2 June 2005, as accessed 25 February 2008
at http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=44543,
about The Meaning of the Holy Qur'ān distributed as part of the “Explore
the Quran” program by the Council on American-Islamic Relations
(CAIR) and funded in part by a $500,000 donation from Saudi Prince
Alwaleed bin Talal.
308 epi: government
Clayton Roberts, The Growth of Responsible Government in Stuart
England (Cambridge: Cambridge University Press, 1966), p. 446 for the
quote.
308 para: American
The hypocrites of the synagogues in Matthew 6:1–18 are said to have
been Pharisees.
309 epi: accomplished
The epigraph is a translation of a major forepart of Analects 13:3
synthesized indirectly from the translations of two sources next specified.
Confucius, The Analects, trans. Arthur Waley (New York: Alfred A. Knopf,
2000), p. 161 for the source translation edited by the insertion of double
quotes, by the replacement of the word ‘prince’ with the word ‘Lord’, and
by revising wording of the sentence concerning a gentleman's reserve with
consideration of the translation by Dawson cited next to derive the begin-
ning portion of the epigraph ending with the conditional ‘if’ clause revised
by changing the word ‘incorrect’ to the phrase ‘not correct’, and p. 15 and
p. 162, fnote 2 for reason to doubt the content of Analects 13:3 is a bona
fide recollection about Confucius, something Analects reports most of
itself to be and generally with more credibility, and p. 15 about recognition
of ‘correcting names’ in 13:3 though that phraseology is not used but the
translation by Dawson discussed next tells of rectifying names. Confu-
cius, The Analects: Translated with an Introduction by Raymond Dawson,
trans. Raymond Dawson (Oxford: Oxford University Press, 1993), p. 49
for the source translation edited by changing single quotes to double
quotes, changing ‘incorrect’ to ‘not correct’, and by using the composite
sentence structure anchored by ‘; and’ as demonstrated by Waley's transla-
tion cited previously to derive the ending portion of the epigraph, and for
the ‘Lord of Wei’ used in lieu of Waley's ‘prince of Wei’ in the beginning
portion, p. vii about the names Master Kong and Confucius, p. xxx for
equivalence of kong in the Pinyin system with k'ung in the Wade-Giles
system, and p. 96, vide 12.11 and p. 97, vide 13.3 about the sentiments of
Analects 13:3 and its concern with humaneness fitting to the Analects
overall but having a literary style indicative of a comparatively late date.
309 para: nationhoods,
310 para: 1876,
311 para: century
Peter Moogk, La Nouvelle France: The Making of French Canada—A
Cultural History (East Lansing: Michigan State University, c2000) pp. 62–
3, 66 about the French autocratic-papalistic agency and top-down cultural
uniformity, and pp. 65, 67, 272 about the survival of French jurisprudence
and Catholicism after 1760. George V. Taylor, “French Revolution,” EA–
99, vol. 12, pp. 67–9 about the ancien régime, the aristocratic revolution
against the King, divestment of the aristocracy and papal clergy and the
subsequent totalitarian regime, and p. 71, col. 1 about the spread of
Napoleonic reforms subversive to European traditions of inherited privi-
lege. See infra the endnotes of the paragraph subsequent to the one of
these endnotes for Protestantisms. J. H. Elliott, Empires of the Atlantic
World: Britain and Spain in America, 1492–1830 (New Haven: Yale
University Press, c2006), pp. 181–2, 206–7 about the recalcitrant culture
of individual liberty in British America in stark contract to the rigid social
framework in Spanish America emanating from the Spanish crown and the
(Roman Catholic) Council of Trent. David Birmingham, A Concise
History of Portugal, 2nd ed. (Cambridge: Cambridge University Press,
2003), pp. 4–5, 99, 128, 223 defines the Portuguese Revolution spanning
1820–1851. Spain had a virulent type of political dissension, tripartite at a
minimum as in Royalists/Carlists, Moderates, and
Liberals/Democrats/Radicals. Peter Pierson, The History of Spain (West-
port, Connecticut: Greenwood Press, 1999), pp. 92–3 about the Spanish
Constitution of 1812 and its annulment by the absolutistic restoration of
Fernando VII, pp. 96–7 about the dispute for the Spanish throne following
the death of Fernando VII in 1833 and the First Carlist War ending in
1840, p. 109 about the Spanish Constitution ratified by Alfonso XII in
June 1876, and p. 97 about Carlists vs. Moderates vs. Progressives. Simon
Barton, A History of Spain (Houndsmills, Basingstoke, Hampshire:
Palgrave Macmillan, 2004), pp. 166–7 about the cortes of Cádiz first
assembled September 1810, their constitution promulgated 19 March
1812, and the annulment of it May 1814 by the restored Ferdinand VII, pp.
169–70 about the revolt of January 1820, the subsequent institution of the
Spanish Constitution of 1812, and the annulment of it in 1823 aided by
military intervention from Louis XVIII of France, p. 182 about the First
Carlist War 1833–40, p. 194 about the Spanish Constitution of 1876, and
pp. 188–9 about Carlists vs. Moderates/Democrats vs. radical Progres-
sives. The Official Web Site of the British Monarchy at
http://www.royal.gov.uk was accessed 12 December 2007 for the titular
domains of Queen Elizabeth, that is the United Kingdom and the 15
Commonwealth realms. Gertrude Himmelfarb, The Roads to Modernity:

The British, French, and American Enlightenments (New York: Alfred A.
Knopf, 2004) is a comparative analysis of three societal variants of the
Enlightenment that does not follow the convention of giving France the
preeminent role.
311 para: Grande
Frank Lambert, The Founding Fathers and the Place of Religion in
America (Princeton, N. J.: Princeton University Press, c2003), pp. 18, 129
about colonial Protestantisms, pp. 9, 263 about Adam Smith's Wealth of
Nations (1776), and pp. 167–9 about Benjamin Franklin's lightning rod.
Adam Smith, An Inquiry Into the Nature and Causes of the Wealth of
Nations, ed. Edwin Cannan (New York: The Modern Library, c1937), for
the titles of the hierarchical divisions enumerated in the footnote. The first
quarter or so of the particular article 3 of Wealth of Nations, the pertinent
part about a market of religions, was available on 30 April 2008 from
Philip B. Kurland and Ralph Lerner, The Founders' Constitution, Web
edition at http://press-pubs.uchicago.edu/founders and was topically cate-
gorized with Amendment I of the U.S. Constitution. The rank and file
have never allowed the formation of society without having had their
emotive exuberances and arguments satisfied, but technology has reached
a point incompatible with mass emotive satisfaction; greatness and growth
by 21st-century standards require that even the rank and file relate with
dialectic sophistication; the imbalance is something failure alone will solve
by disposing of unsophisticated people or sophisticated technology; like
raw technical advance without commensurate psychological advance,
globalization without standards like the Prime Directive creates a destruc-
tive situation. A. L. Burt, chapter 6, “The Problem of Government, 1760–
1774,” in The Cambridge History of the British Empire, Volume 6 (of an 8
volume series), Canada and Newfoundland, eds. J. Holland Rose, A. P.
Newton, and E. A. Benians with advisor W. P. M. Kennedy (Cambridge:
Cambridge University Press, 1930), p. 153 about (religious) tolerance of
French in Canada by the British Empire as engrossed by the Treaty of
Paris, 10 February 1763 with terms iterative of Frances cession of Acadia
to Great Britain 50 years earlier (note p. 928, col. 2, vide index entry ‘Reli-
gion’, that attributes religious tolerance to the tolerance described on page
153), and p. 146 for the tragic deportation of (French) Arcadians from
Acadia in 1755. The volume of the aforementioned source shall be abbre-
viated as CHBE–6. C. E. Fryer, chapter 10, “British North America Under
Representative Government,” part (A), “Lower Canada (1815–1837),” in
CHBE–6, p. 235 about French Canada (of the British Empire) retaining its
language, Church and civil law into the early 1800s, at least. J. L.
Morison, chapter 10, part (B), “Upper Canada (1815–1837),” in CHBE–6,
p. 254 about tolerance prevailing in Upper Canada (now southern Ontario)
of the Scottish and Roman Catholic Churches (rivals of the state English
Church). Robert A. Falconer, chapter 24, “The Pioneering Spirit,” in
CHBE–6, pp. 566–8 about the Canadian pioneers who shared the same
environmental requirement for industriousness and practical self-suffi-
ciency, who divided into religious cliques, ‘Englishmen were Anglicans,
Wesleyans or Baptists; Scotsmen were Presbyterians of three slightly
differing types; Americans might be anything but Anglicans, or nothing,’

but cliques ‘otherwise homogeneous’ as British extraction and enough so
to lay ‘the foundation of a new people.’
313 para: ring
Richard H. Dillon, The Hatchet Men: The Story of the Tong Wars in San
Francisco's Chinatown (New York: Coward-McCann, Inc., c1962), p. 77
about the transition of San Francisco's Chinese to Chinese Americans
‘around the time of the earthquake of 1906 or the fall of the Manchu
Empire in 1912.’ When the 1906 earthquake happened, Chinese imperi-
alism the institution was clearly terminal. Charles O. Hucker, China's
Imperial Past: An Introduction to Chinese History and Culture (Stanford,
California: Stanford University Press, 1975), pp. 55–7, 70–1 about the
Mandate of Heaven, a part of traditional Chinese cosmology, designating
the emperor as the Son of Heaven and wholly responsible for the welfare
of all mankind or literally ‘all under Heaven,’ the all-powerful Heaven
corresponding to the supreme deity of other religions, and the incorpora-
tion of traditional Chinese cosmology within the official state doctrine
Confucianism. ‘Under God’ was added to the Pledge of Allegiance on 14
June 1954. According to the U.S. Treasury Department via the “History of
‘In God We Trust’” Web page accessed 6 February 2008 at
http://www.treas.gov/education/fact-sheets/currency/in-god-we-trust.html,
the phrase ‘In God We Trust’ was first embodied on U.S. coins, but not on
all types, in the 1860s and on Federal Reserve notes in the 1960s.
314 epi: slave
George W. Bush, Second Inaugural Speech, 20 January 2005.
315 para: destructive
Paul Finkelman, “Human Sacrifice: The New World and Pacific
Cultures,” Macmillan Encyclopedia of World Slavery, eds. Paul Finkelman
and Joseph C. Miller (New York: Simon & Schuster Macmillan, c1998),
vol. 1, p. 421, col. 2 about human sacrifice of slaves by Aztecs, Mayans,
and Incas.
316 para: society
Bernard Lewis, Cultures in Conflict: Christians, Muslims, and Jews in
the Age of Discovery (New York: Oxford University Press, 1995), pp. 74–9
about the threat to the existence of Western civilization and freedom itself
from the adoption of ‘white man's burden’ and multiculturalism as Western
mores, a warning articulated not later than the publication year 1995.
Intellectualism is a fundamental sociopsychological value of modern free-
dom.
316 para: English
Fannie Lou Hamer, Rosa Parks, and Coretta Scott King Voting Rights
Act Reauthorization and Amendments Act of 2006, Pub. L. 109–478,
enacted 27 July 2006. Martin Luther King, Jr., a speech delivered in
Memphis, Tennessee on 3 April 1968 in Clayborne Carson and Kris
Shepard, eds., A Call to Conscience: The Landmark Speeches of Dr.
Martin Luther King, Jr., (Atlanta: IPM, c2001), pp. 214–5 for the King's
assertion that black Americans were at the time of the speech collectively
wealthier than all nations of the world but United States, Soviet Russia,
Great Britain (United Kingdom), West Germany, France, and four
unnamed others.
318 para: indignant
Dividing the cultures and peoples of the world and world history into
categories of increasing sophistication is an example of modeling.
Modeling dispenses with some details to clearly see others. Some will see
this as slighting. Be that as it may, the categorical terminology is useful,
but not so much without a consistency of definition. The terms First
World and Third World are used, but they have not been defined with
much precision or insight. I endeavor to do that here. The Third World is
distinguished by the thuggery of who you know not what you know, the
Second World is distinguished by a brotherhood ideologically based on
what you know but enforced in a top-down manner well suited to who you
know, and the First World is distinguished by a brotherhood ideologically
based on what you know enforced in a bottom-up manner less well suited
to who you know and having had in practice the distinguishing ideologies
democracy and free markets. As ideology becomes more sophisticated is
becomes more philosophical and self-empowering, less propagandistic.
Third World people are tribal when they do not form a nation, and gath-
ered under a rudimentary dictatorship unnaturally propped up with exoge-
nous technology when they do. When the rank and file of a First World
nation are corrupt, symptomatically enthralled by who they know, their
leaders in this respect will follow, will be no different. That nation, as its
riches are wantonly cannibalized, degenerates into a Second World nation,
one denying freedom and foisting poverty, one commensurate with what
the people recently were and currently deserve. Without the ideology of
brotherhood—emphasis on ideology—government control would be no
more sophisticated than a rudimentary dictatorship, which is unable to
scale beyond a medium-sized nation. United not under the falling anvil of
Wile E. Coyote we stand.
320 para: taxation
See 26 U.S.C. 1 notes, the IRS's 1040 Instructions 2007 booklet, p. 87,
etc. for the brackets in 2007, at least, of 10%, 15%, 25%, 28%, 33%, 35%
—don't go by 26 U.S.C. 2006 ed. 1(a), (b), (c), and (d) without considering
the adjustments of 26 U.S.C. 1(i), which gives the same aforesaid tax
brackets since tax year 2003. Prevailing in 2008, the Social Security tax
rate was 6.2% + 6.2% for wages not exceeding a cap amount, set to
$97,500 for calendar year 2007, and the Medicare/Medicaid tax rate was
1.45% + 1.45%: effectively 15.3% for most and the poorest wage earners.
“Bonds' No. 756 ball generates more than initial estimates” Web page
accessed 11 November 2008 at http://sports.espn.go.com/mlb/news/story
?id=3022027, for the auctioned price of $752,467 for the 756th home-run
ball of Barry Bonds and for Matt Murphy's (the fan who got the ball) state-
ment that said he had hoped to keep the ball but ‘determined that was not
the best strategy at this stage of my life.’ The tax consequences were well
publicized: Murphy was responsible for income tax on the ball's worth
whether he actually sold it or not. In fact, only the political landscape (that
is the attention to politics by American's) seems to preclude taxation by the
IRS in the event the lucky fan simply gave the ball back to the player who
hit it. Tom Herman, “The Big Catch Could Have a Big Catch,” dated 25
July 2007, accessed 11 November 2008 from the Wall Street Journal
website at http://online.wsj.com/article/SB118532191532076935.html, about
the IRS spokesman who in 1998 and in response to a reporter's question
said that should a fan catch a record-breaking home-run ball hit by Mark
McQwire, that fan might incur a hefty gift tax, the comment resulting in
bad publicity for the IRS involving criticisms from members of Congress.
321 para: encouraged
John King, “Paige calls NEA ‘terrorist organization’,” online article of
CNN, 23 February 2004, accessed 3 August 2007 at http://www.cnn.com
/2004/EDUCATION/02/23/paige.terrorist.nea/, about comment by Secretary
Paige. William H. Hoyt and Eugenia Froedge Toma, “Lobbying Expendi-
tures and Government Output: The NEA and Public Education,” Southern
Economic Journal, Vol. 60, No. 2 (October 1993), a study about the effec-
tiveness of NEA lobbying, states on pages 405–6:
Using data on salaries aggregated to the state level, we find that NEA
political spending increases salaries of primary and secondary educa-
tors. With data on country-level educational expenditures we find
that NEA spending also increases primary and secondary educational
expenditures. As predicted by our model, political spending is
higher, ceteris paribus, in those states with lower educational
spending and salaries.
The words ‘ceteris paribus’ were not italicized in the source.
322 para: tolls
“Dow Jones & Company and News Corporation Enter Into Definitive
Merger Agreement” Web page accessed 17 November 2008 at
http://www.newscorp.com/news/news_347.html, a News Corp. press
release, dated 1 August 2007, for the acquisition agreement made on 1
August 2007. “News Corporation Completes Dow Jones & Co. Acquisi-
tion” Web page accessed 17 November 2008 at http://www.newscorp.com
/news/news_359.html, a News Corp. press release, dated 13 December
2007, for the completion of the acquisition on 13 December 2007. On 17
November 2008 the same press releases were available on the U.S. Secu-
rity and Exchange Commission's (SEC's) website at http://www.sec.gov by
performing a historical search of the Edgar database on the text ‘News
Corp’ (without quotes) and following the two pertinent entries, matching
the press release dates 1 August and 13 December 2007.
323 para: for
Susan Campbell Bartoletti, Growing Up in Coal Country (Boston:
Houghton Mifflin Company, 1996), p. 122 for grateful miner and quote.
324 para: you

Charles O. Hucker, China's Imperial Past: An Introduction to Chinese
History and Culture (Stanford, California: Stanford University Press,
1975), p. 79 about the distinction between the Golden Rule and the Silver
Rule in relation to the beliefs of Confucius. The quote is simply the nega-
tion of my preferred form of the Golden Rule. William Theodore de Bary,
et al., Sources of Chinese Tradition (New York: Columbia University
Press, 1960), p. 27 for a translation of Analects 15:23 that attributes to
Confucius the idea Hucker calls the Silver Rule:
Tzu Kung asked: “Is there any one word that can serve as a principle
for the conduct of life?” Confucius said: “Perhaps the word ‘reci-
procity’: Do not do to others what you would not want others to do
to you.”
Edward T. Sandrow, “Hillel,” EA–99, vol. 14, p. 197, col. 2 about the same
idea given by the first-century rabbi Hillel:
What is hateful to you do not unto your fellow man. That is the
whole law, the rest is commentary.
325 para: foreigners
Judge James M. Munley, Decision and Verdict of case number 3:06-cv-
01586, filed 26 July 2007, U.S. District Court for the Middle District of
Pennsylvania, accessed 3 August 2007 at http://coop.pamd.uscourts.gov
/06v1586.pdf via the PACER system at http://coop.pamd.uscourts.gov, p.
190 for the “AND NOW *x*x*” quote, but bold effect dropped, and p. 18
for “The plaintiffs testified *x*x*” quote.
326 para: States
“Fox Nixes Drug Decriminalization Law,” online CBS/AP article, dated
3 May 2006, accessed 3 August 2007 at http://www.cbsnews.com/stories
/2006/05/03/world/main1584840.shtml, about Mexican bill to foster drug
tourism.
327 para: it
John F. Manning, “The Absurdity Doctrine,” Harvard Law Review, Vol.
116, No. 8 (June 2003), pp. 2388–93 about the absurdity doctrine.
328 para: yes
D. B. Hall, Major in the U.S. Marine Corps, “Rules of Engagement and
Non-Lethal Weapons: A Deadly Combination?”, Marine Corps University
Command and Staff College, dated 1997, as accessed 14 February 2009 at
http://www.globalsecurity.org/military/library/report/1997/Hall.htm, for the
quote about Third World riots, and other disturbingly insightful considera-
tions including the time Marines deployed in Beirut under President
Reagan were operating under orders to permit hostile gunmen to freely
walk past to an advantageous position, open fire (with results unspecified),
and freely walk back because the gunmen did not attempt to make use of
their weapons while going to and from their chosen attack positions.
Benis M. Frank, U.S. Marines in Lebanon, 1982–1984 (Washington, D.C.:
History and Museums Division, Headquarters, U.S. Marine Corps, 1987),
pp. 92–3, 98–9 for a reserved account of sniper attacks on Marines in
Beirut in 1983 consistent with Hall's account as far as it goes, the ROE
requirement that hostile snipers may be engaged only while sniping being
left to the reader's supposition, though no dismissal of the compelling and
well-organized details of the historical work should be construed. We
might recall the body of American soldier Staff Sergeant William David
Cleveland dragged through the streets of Mogadishu, Somalia on 4
October 1993 with impunity, the humiliating casualty of a neutral ‘peace-
keeping’ mission inherited by and managed under President Clinton.
Other business-as-usual drags of other bodies before and after weren't inti-
mately photographed nor politically relevant. Paul Watson, Where War
Lives: A Journey Into the Heart of War (New York: Rodale, c2008), pp. 1–
5, 35 for the gruesome fate of Staff Sergeant Cleveland, p. vi for the
Pulitzer Prize-winning photograph by the author, p. 9 for mission creep
under Clinton, and pp. 22–4, 42 for other occasions of paraded bodies or
body parts on the streets of Mogadishu.
Comprehensive Report to the Special Advisor to the DCI on Iraq's
WMD, HTML edition, accessed 10 November 2008 at https://www.cia.gov
/library/reports/general-reports-1/iraq_wmd_2004/index.html, U.S. Central
Intelligence Agency, 30 September 2004, Volume 3, chapter 6, “Biological
Warfare,” for chemical and biological weapon training of one or more
Iraqis in the United States in the 1960s.
329 para: core
Center for Law and Military Operations (CLAMO) is a multinational
agency hosted by The U.S. Army Judge Advocate General's Legal Center
and School, Charlottesville, Virginia. CLAMO's purpose is to store and
disseminate information helpful to the military legal community to include
the U.S. military's operation lawyers called judge advocates. An important
CLAMO publication is Rules of Engagement Handbook for Judge Advo-
cates (2000). The CLAMO website, which is the front end to the CLAMO
database of publications, ceased to be publicly accessible circa 1 February
2009 for ‘information security’ according to a notice on the site dated 1
February 2009 and accessed 13 February 2009. The same day by using a
Web search engine I was able to download the handbook from Italy's
Department of Defense (Ministero della Difesa). Within the Judge Advo-
cate General's Legal Center and School is the International and Opera-
tional Law Department. The department annually publishes its
Operational Law Handbook. Both publications are useful documentation
about the rules of engagement (ROE). Unclassified, abbreviated, but
unstandard versions of ROE are issued to military personnel as pocket
cards.
Howard H. Hoege III, Captain in the U.S. Army, “ROE...also a Matter
of Doctrine,” The Army Lawyer, Department of the Army Pamphlet 27-50-
353, June 2002, as accessed 13 February 2009 at http://www.loc.gov/rr/frd
/Military_Law/pdf/06-2002.pdf, p. 1 for the statement: “Judge advocates
(JAs) have developed the U.S. Army's concept of operational law and rules
of engagement (ROE) at an exponential rate over the past decade.” I am
sure the cause is feminization of the West because my feelings say so. D.
B. Hall, “Rules of Engagement” is a thoughtful, historical examination of
ROE usage by the U.S. military.
ENDNOTES of Acknowledgments 681
329 para: effect

D. B. Hall, “Rules of Engagement,” for the ‘CNN effect’.
330 para: it
“Historian’s Corner: Coins Production, Coin Design, and Coin Compo-
sition” Web page accessed 13 February 2009 at http://www.usmint.gov
/historianscorner/index.cfm?action=Production, for the composition of
pennies changed in 1982 from 95 percent copper and 5 percent zinc (pure
copper is soft) to copper plated zinc and the (current) composition of
nickels being an alloy of 75 percent copper and 25 percent nickel. “Coin
Specifications” Web page at http://www.usmint.gov/about_the_mint
/index.cfm?action=coin_specifications, for the (current) compositions of
pennies and nickels without mention of the change to the penny in 1982
and with the content of the penny specified as 2.5% Cu (copper) with the
balance as Zn (zinc). Neither Web page source, both from the U.S. Mint
website, specified how the given percentages were reckoned. I was able to
download the annual reports of the U.S. Mint from their website on 19
February 2009. I used a search engine to navigate to the “Annual Report”
portal Web page at http://www.usmint.gov/about_the_mint/index.cfm
?action=annual_report. The United States Mint 2008 Annual Report, p. 30
for the per-unit ‘cost of goods sold’ for fiscal years 2006–2008 of the
penny having been 1.19, 1.65, and 1.39 cents, respectively; and of the
nickel having been 5.92, 9.49 and 8.77 cents, respectively. United States
Mint 2006 Annual Report, p. 18 for the per-unit ‘cost of goods sold’ for
fiscal year 2005 of the penny having been 0.95 cents and of the nickel,
4.78 cents. United States Mint 2005 Annual Report, p. 14 for the per-unit
‘cost of goods sold’ for fiscal year 2004 of the penny having been 0.90
cents and of the nickel, 4.46 cents.
Acknowledgments
336 para: journalism
I heard Glenn Beck speak on his radio show circa early February 2008
about the economic danger to overspending on war in the Middle East
demonstrated by the Soviet Union, and to the best of my recollection, on
his show late in 2007 about Mexican incursions in 2006. It turns out a
watchdog group called Judicial Watch uncovered U.S. Government knowl-
edge of Mexican Government incursions into the United States by making
a request in 2007 under the Freedom of Information Act. The result was a
report about incursions during fiscal year 2006 that acknowledges 253
incursions from 1996 to the 30 September 2006 date of the report. My
sources about the finding of Judicial Watch are: Mexican Government
Incidents, 2006 Fiscal Year Report at http://www.judicialwatch.org/archive
/2008/FY2006MexicanIncursionReport.pdf and “Judicial Watch Releases
Border Patrol Report on Mexican Government Incursions into the United
States for Fiscal Year 2006” Web page at http://www.judicialwatch.org
/judicial-watch-releases-border-patrol-report-mexican-government-
incursions, both accessed 2 March 2008. More information may still be
available online from WorldNetDaily.com. I heard Michael Savage speak
on his radio show in late 2006, as I recall, about U.S. media ownership by
682 ENDNOTES of Further Review
Prince Alwaleed bin Talal. I heard Michael Savage recite on his radio
show of 13 August 2007 a version of the saying famously attributed to
Martin Niemöller. If I had heard the famous quote before—I may vaguely
recall it from my days of public schooling actually—I had forgotten it for a
long time. A Call for Stewardship: Enhancing the Federal Government's
Ability to Address Key Fiscal and Other 21st Century Challenges, GAO-
08-93SP, U.S. Government Accountability Office, dated 17 December
2007 by the Web page at http://www.gao.gov/docsearch/abstract.php
?rptno=GAO-08-93SP used to access it on 10 February 2008, p. iii about
the irony of the Government's usage of the terms mandatory and discre-
tionary spending.
337 para: government
States' rights anchored by the critical right of secession are the condi-
tion of a free market of federal politics. The market instability would
motivate cultural stability by demanding minimal social competence,
something ultimately empowering not oppressive. A people unable to
manage their socially derived freedoms under such circumstances lack the
merit to deserve such freedoms generally; therefore, the risk of having
States' rights is simply owning the civic merits of oneself and one's
regional neighbors sooner rather than later or perhaps never, and losing the
opportunity to foist upon others in the future a bill for social delinquency
with interest. Globalization regulated by the lost American concept of
States' rights would be far more humane and successful. The mechanisms
of membership change would have to be worked out, but the real difficulty
is the cultural inadequacy of people unable to appreciate the philosophy of
the scheme.
339 para: analysis
Those with the wherewithal to judge that all abortions should be illegal
must surely know about the birth defect anencephaly. I don't presume to
know the exhaustive list a priori of appropriate exceptions to a general ban
on abortion because I don't have the wherewithal, which is the dilemma of
centralized planning.
342 para: it
“President's Address to the Nation” Web page, a transcript of the Presi-
dents address given Wednesday evening, 24 September 2008, accessed 26
September 2008 at http://www.whitehouse.gov/news/releases/2008/09
/20080924-10.html, for, besides the transcript, the President's reference to
having made the announcement of his $700 bailout plan on the previous
Friday. The plan was submitted to Congress the next day, a Saturday.
Further Review
345 epi: himself
Fraser's Magazine For Town and Country, Vol. 7, No. 39 (March
1833), p. 286, col. 2 for the epigraph.
ENDNOTES of Further Review 683
345 para: leaders

I inspected physical and online statute volumes to verify and construct
the organizational history given. I found getting started much easier by
reading Richard J. McKinney, Basic Overview on How Federal Laws Are
Published, Organized and Cited, composed for the 12 January 2006
FLICC Program on Federal Legislation Research, a PDF file accessed on
15 December 2006, the URL then used not recorded.
349 para: far
14 Stat. 74–5, for An Act to provide for the Revision and Consolidation
of the Statute Laws of the United States (the longer traditional title is used
since the act has no short title), the Act of 27 June 1866, ch. 140, p. 74 for
the phrase ‘general and permanent’. 19 Stat. 268–9, for An act to provide
for the preparation and publication of a new edition of the Revised Statutes
of the United States, the Act of 2 March 1877, ch. 82, p. 268 for the second
edition of the Revised Statutes to be based upon the first as published in
1975, further indicated to have been done according to the Act of 20 June
1874, ch. 333, 18 Stat, 113, found in volume. 18, part 3. The Act of 22
June 1874, no apparent chapter but part 1 of volume 18 of the U.S.
Statutes, 2nd edition, An Act To revise and consolidate the statutes of the
United States, in force on the first day of December, anno Domini one
thousand eight hundred and seventy-three., pp. 1, 1085 for identification of
the act, and p. 1085, section 5596 for the repeal of prior law and replace-
ment by the content of the acts—identified by a well-composed reply
dated 5 September 2008 from Public Services Division, Law Library of
Congress, U.S. Library of Congress. The reply also identifies as a useful
source on the topic of the Revised Statutes: Ralph H. Dwan and Earnest R.
Feidler, “The Federal Statutes—Their History and Use,” Minnesota Law
Review, Vol. 22, No. 7 (June 1938), pp. 1008–29. The second edition itself
was never enacted within or as a statute like the first edition was. The
legal status of the expected if not already published second edition, per the
said act of 2 March 1877, was revised by the Act of 9 March 1878, ch. 26,
20 Stat. 27, in so many words, from positive law to prima facie. “About
the Office and the United States Code” Web page accessed 14 August
2008 at http://uscode.house.gov/about/info.shtml, for an explanation of
positive law versus prima facie, and the ongoing process of codification
into positive law additional codification titles covering additional subject
matter as well as simply updating the code generally. Dwan and Feidler,
“The Federal Statutes,” p. 1018 for the attempted codification from 1897
until, it seems, the presentation of a final report on 15 December 1906,
with the result that Congress only accepted the Criminal Code and Judicial
Code. Roy G. Fitzgerald, Chairman of the Committee on the Revision of
the Laws of the House of Representatives, the preface at 44 (pt. 1) Stat. v
for the first official codification of the general and permanent laws made in
1874 (published?), an explanation of prima facie, an attempt at codifica-
tion from 1897 to 1907, and another attempt in the early 1920s apparently
leading to the codification of general and permanent laws in force 7
December 1925, published in 1926 as vol. 44, pt. 1, and being prima facie.
Nancy Pelosi, Speaker of the House of Representatives, preface in U.S.C.
2006 ed, p. VII for new editions of the U.S.C. having been published every
684 ENDNOTES of New World Order
six years since 1934, and the enactment of individual titles of the U.S.C.
into positive law begun in 1947 and having 24 of the 50 titles made posi-
tive law on 15 January 2007 (cf. U.S.C. 2006 ed., p. III).
362 epi: readjustments
Frank P. Sargent, “The Ann Arbor Strike,” North American Review, Vol.
156, No. 438 (May 1893), p. 565 for the dependent clause capitalized as a
complete sentence to make the epigraph. The specific concern was
excesses of judicial power.
New World Order

365 epi: out
Many versions of the quote exist, and I have crafted the one shown.
Harold Marcuse, ‘Martin Niemöller's famous quotation: “First they came
for the Communists”,’ a Web page at http://www.history.ucsb.edu/faculty
/marcuse/niem.htm, accessed 25 February 2008, the most definitive source
I could find on Niemöller's quote, about the uncertainty and multiform of
the quote and its sources, the historically consistent order of Communists,
Socialists, Trade Unionists, and Jews, the unlikelihood of reference to
Catholics, the possibility Niemöller delivered the quote in German or
English, ‘speak out’ as a usual translation for the verb at the end of the
quote but no mention of ‘speak up’, an excerpt from and commentary on
Franklin Littell, “First they came for the Communists...,” Christian Ethics
Today, Vol. 3, No. 1 (February 1997), online version updated May 2001,
mention of the source Bartlett's Familiar Quotations, and mention of
various other sources. Franklin H. Littell, “First they came for the Jews,”
Christian Ethics Today, Vol. 3, No. 1 (February 1997), online version
updated May 2001, as accessed 25 February 2008 at
http://www.christianethicstoday.com/Issue/009/First%20They%20Came%20
for%20the%20Jews%20By%20Franklin%20H%20Littell_009_29_.htm,
found via the “on-line version” link in the aforementioned Web page of
Harold Marcuse, for a version of the Martin Niemöller quotation
mentioning in order communists, socialists, trade unionists, and Jews, and
ending with the words ‘no one left to speak out for me.’ Notice the article
title is different and more sensible in Marcuse's citation given the content
of the quote within the article. Regarding a source I did not find via
Marcuse's Web page though the potential was there, John Bartlett,
Familiar Quotations: A Collection of Passages, Phrases and Proverbs
Traced to Their Sources in Ancient and Modern Literature, Fifteenth and
125th Anniversary Edition, Revised and Enlarged, ed. Emily Morison
Beck (Boston: Little, Brown and Company, 1980), p. 824, col. 1 for a
version of the quote starting with ‘In Germany’, mentioning in order
Communists, Jews, trade unionists, and Catholics, using ‘speak up’ rather
than ‘speak out’ and ending with ‘no one was left to speak up.’ My
version of the quote is a derivative using Littell's wording except for the
omission of ‘for me’ at the end consistent with the version from Bartlett,
Familiar Quotations, and using the simple prose style I prefer and exhib-
ENDNOTES of New World Order 685
ited in the version from Bartlett, Familiar Quotations, achieved by omit-

ting en dashes, line breaks, and semicolons of Littell's version, and by
using periods where Littell used semicolons.
James Bentley, Martin Niemöller (New York: The Free Press, c1984)
pp. viii, 3 for Martin Niemöller, a German, born on 14 January 1892 and
deceased on 5 March 1984, p. 7 for his childhood study of English (which
suggests he could have given the famous quote in English or German), and
pp. 141, 145, 155–6, 164 about his survival of the concentration camps at
Sachsenhausen and Dachau.
365 epi: it
Office of United States Chief of Counsel for Prosecution of Axis Crimi-
nality et al., Nazi Conspiracy and Aggression, in 8 volumes (Washington:
United States Government Printing Office, 1946), vol. 4, p. 563 for the
epigraph but with ‘[p. 65]’ between ‘never’ and ‘speak’ as in the source
removed, p. 558 for the speech having been at Posen on 4 October 1943,
and vol. 2, p. 196 for a somewhat different translation of the same excerpt
but with the wrong date of ‘June 20, 1934’, and identification of (Hein-
rich) Himmler as the speaker at Posen.
365 para: relief
President Bush's declaration of a new world order may have been an
ingratiating declaration of political deference directed to non-Western
interests more than to Americans. In 2008 Presidential Candidate Barack
Hussein Obama II told us there were 57 U.S. States and that we should set
our thermostats parsimoniously for the sake of the world. Expect of our
politicians more puzzling phraseology. The template I am describing is
based on my reading of the 1967 reprint of the revised 1890 edition.
Powderly's quote is from the New-York Times, but the bracketed clarifica-
tion is not. I make huge distinction between the common good of quali-
fied membership and the universal good of inanely presumed membership.
Free-market capitalism involves stewardship of the common good by
responsible ownership. Laissez faire dismisses common good and most
economic potential is cannibalized or unrealized. Communism (unbridled
socialism) overestimates common good and most economic potential is
cannibalized or unrealized. The style of courting tyranny means nothing
once getting it.
369 para: past
Interlocking directorships are a typical signature of societal puppet
masters. I warn you about merging our vehicle fuel and heating infrastruc-
tures into our electrical infrastructure as I warn you about undue concen-
tration of power. I also warn you about your inept fellow citizens. Marvin
Harris, Cannibals and Kings: The Origins of Cultures (New York: Random
House, c1977), p. 193 about looming energy despotism, p. 195 for:
I hold it perniciously false to teach that all cultural forms are equally
probable *x*x*. *x*x*. Most people are conformists. History
repeats itself in countless acts of individual obedience to cultural rule
and pattern, and individual wills seldom prevail in matters requiring
radical alterations of deeply conditioned beliefs and practices.
686 ENDNOTES of New World Order
and p. 82 for:
I urge those who feel that my explanation of the evolution of culture
is too deterministic and too mechanical to consider the possibility
that at this very moment we are again passing by slow degrees
through a series of “natural, beneficial, and only slightly .x.x. extra-
legal” changes which will transform social life in ways that few alive
today would consciously wish to inflict upon future generations.
369 para: Enlightenment
Freedom requires a prevailing flow of sovereign power from the
governed to the government. Popular sovereignty is by definition the
institution and abolition of proxy government at will. Grass-roots move-
ments of sovereignty are, like love, objects of psychological reality only.
In the physical world they exist only as fleeting processes. Popular
sovereignty must continually refresh itself to have true societal expression.
Because of all that, because only an incorrigible government will not yield,
because government is generally indicative of the governed, and because
government has the monopoly of legality, to win freedom in the most dire
of times, grass-roots movements of popular sovereignty must by necessity
gestate within the cloak of secrecy a jumble of personal networks and
preparednesses that may be actuated only once as the express will of
particular people fit for self-government. To the concept of a loose, regen-
erative patchwork of people in the act of deserving freedom I affix the
name Order of the Knights of Enlightenment and the knightly personifica-
tion it connotes. The name as used in this context is not meant to denote
any particular organization or definitive membership. It is meant to
symbolize cultural aspiration and process instructed by the histories of the
Enlightenment and the Order of the Knights of Labor.

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NEUROPSYCHIC

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I want to rip out the cherished faults of your self-identity. This

4.5 Minimum Wage Reverence....................................124

This disclaimer is dedicated to all the litigious worms and legisla-

objectively develop one's philosophy: one must personify wisdom.

The human rights we enjoy today trace a lineage to medieval

Even in the antebellum America of potent State autonomy, the

Abolitionist clergy generally could skirt or dispute Biblical sanc-

British public and Parliament were roused to decide Jamaica's

Children as young as six years old worked longer, harder hours

Unavoidably, Lowell was ongoing fodder in the American debate

northern railroad capitalists the threats to their infrastructure under

were backed by the government's power of taxation. Such were

Changing the scope of the greenback introduced government

ALL DEBTS, PUBLIC AND PRIVATE’ is in order. Federal Reserve notes

currency of banks individually lacking geographic coverage. The

Ethnic differences political and economic were hardly absent

violence between factions escalated as thousands from each polit-

merit festering at intersocietal boundaries could be relieved by

The great difficulty in the way of reform is the difficulty of getting

members and the countries of England, France, Belgium, Switzer-

lenged freight rates via the Grange Movement. It is worth noting

dusty, crowded enclosures, subject to the whip and club of the

strikes were the direct result of the communistic spirit spread

Wood that excommunicated all lawless societies, especially the

In early 1878 the nationalizing society fully named the Noble

‘conspiracy’ and abused accordingly. The costs of legal proceed-

coins remained and a tremendous paradigm shift was inspired.

The Mongolian regime engaged erudite Muslims to handle finan-

with the West African coast south of Cape Bojador. By 1454

command of Vasco da Gama, the Portuguese established a trade

Oceania. Excepting China, slavery in Southeast Asia was yet

removed. Beginning in the 1550s or so, the Roman Catholic

dealings with foreigners were prohibited. The military establish-

Heaven down to the common people it is uniformly so: for all,

from humanity in general rather than any particular belief system.

of representative government. Somehow the Mexicans consis-

port cities San Francisco and Glasgow. The West maintained a

An eastern newspaper reported in April 1871 that an employer

The Chinese rarely westernized readily, but the practice of

The three important varieties of opium were Bengal, Malwa,

The private British merchants were not satisfied with

By the 19th century's 2nd decade the inland spread of illicit

influence enough native states to cut off the transport of competing

conciliatory terms had been successfully imposed at Canton the

thwarted by Chinese officials, but the differences were not settled.

subjects of Her Britannic Majesty, in any Chinese official docu-

7 Historian Morse wrote:

interested only in the crew of twelve who were all Chinese. A

balance of exchange was maintained, by which the means were found

the world's leading abolitionists. They predominated the coolie

impeachment troubles at the time. Mr. Seward's son asserts the

It was 1869 when the 13th Amendment that had abolished

9 July 1870, the State Department determined contracts were not

Campbell wrote, “These restrictive or exclusive policies still

their wages and to speak with the newcomers. The manufactures,

a ‘personal friend, to migrate from any foreign country to the

or 76 cents. On the voyage across the Atlantic, Francisco was

A three-judge panel of the appellate court affirmed the circuit

the 1st of May, 1886 should be discountenanced by this body. The

of the Times noted about police methods: “The sound of clubs