Saturday, July 24, 2010

24 July 1920 The Original "Ponzi Scheme" is Exposed

Charles Ponzi (March 3, 1882–January 18, 1949)...Image via Wikipedia

We talk a great deal about Ponzi schemes (especially in these years of financial scandal), but not everyone knows where the term comes from.  Unfortunately, the Ponzi scheme was one of the Commonwealth's less distinguished legacies to civilization.   (though you have to admit:  the idea was darned clever).

At any rate, Mass Moments tells us:

On this day in 1920, the Boston Post ran a story that ultimately exposed one of the biggest financial swindles in history. In a series of articles that won the paper its first Pulitzer Prize, the Post questioned the financial practices of Charles Ponzi. An Italian immigrant with dreams of greatness, Ponzi created a near frenzy in Boston by promising a 50 percent return within 45 days. In seven months, 30,000 people invested more than $10,000,000 in Ponzi's scheme. His plan to pay off early investors with funds raised from later ones inevitably collapsed. He was convicted of fraud and sent to prison. On his release, he was deported to Italy. He left behind his name as the definition of a certain kind of scam. (read the rest)

The article does point out that Ponzi in fact arguably did think he could somehow pay back his investors (the man seems to have been above all immensely ambitious and delusional).  It could have added that, strictly speaking, the fraud bearing his name wasn't even a Massachusetts invention:  As in the case of many other things, we just did it better or more flamboyantly and got the lion's share of the attention, for good or ill.
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Endangered Historic Resources: Do You Know Where They Are? (you've got a week in which to tell us)

There's just a week left in which to make nominations for the Preservation Massachusetts list of the most endangered historic resources in the Commonwealth.  "Since the first listing in 1993," the organizers tell us, "only 17 resources have been lost, over 40 completely saved and restored and many more progressing well on the long road back from the brink."

Amherst has the dubious distinction of having made the list of "winners" twice:  in 1998, it was our 1730 West Cemetery, resting place of Emily Dickinson and other residents, famous and forgotten alike.  In 2007, it was the entire "Campus of the University of Massachusetts, Amherst."  Both have been the subject of a number of posts on this site. The West Cemetery was endangered by the usual decay, development, and vandalism.  It was therefore a matter of getting the Town to notice it amidst the welter of projects and priorities.  The "award" helped not only to raise consciousness, but also to prompt public funding for a preservation plan that we have, thanks to the Community Preservaton Act, been slowly but systematically implementing (updates to follow soon).

Demolition of the 1910 Brooks Dairy Barn, 2008
In the case of the University, by contrast, the threat came not just from demolition by neglect, but above all from active and wanton destruction of historic edifices and landscapes on the part of administrators (at both the local and state levels) for whom history and preservation were not even on the radar screen.  It took the proposed demolition of a pioneering structure of early scientific agriculture to draw attention to the problem and galvanize sentiment against the policy.  Professor Emeritus Joseph Larson assembled a group of faculty, staff, alumni, and community partners in an organization entitled, "Preserve UMass" (PUMA), which initiated action against the University and state for violation of legal requirements regarding environmental protection and historic preservation.  The 1910 stucco Cow Barn was lost, but the University was forced to undertake mitigation that included professional documentation of its historic structures and landscapes as well as proper notification procedures in the case of future demolition and construction plans.

We can therefore affirm that, in both cases, the designation really did make a difference in focusing attention and resources on the problem.

Last year's "winners" were:
* The Blackstone Viaduct, Blackstone
* The Caesar Robbins House, Concord
* Peace Haven, Freetown
* The Cisco Homestead, Grafton
* Foreclosed & Abandoned Neighborhood Properties, Massachusetts
* The Milton Poor Farm, Milton
* First Baptist Church, New Bedford
* Lincoln Square, Worcester

In May, the National Trust for Historic Preservation announced its annual list of "Most Endangered Places"
  • America's State Parks and State-Owned Historic Sites
  • Black Mountain
  • Hinchliffe Stadium
  • Industrial Arts Building
  • Juana Briones House
  • Merritt Parkway
  • Metropolitan AME Church
  • Pågat
  • Saugatuck Dunes
  • Threefoot Building
As the National Trust says,
visibility . . . can be a critical weapon in the fight to save an endangered place, whether it’s a national historic landmark like President Lincoln’s Cottage or a lesser known site like the oldest surviving McDonald’s in Downey, California. Once people are aware of such threats to our heritage, chances are greater that they will step up to help and disaster can be averted.
Preservation Massachusetts reminds us that nomination forms are available on the PM website or can be obtained by contacting our office at 617-723-3383, and adds:

NOTE: Extensions may be granted- it is not too late!

That's true for only a limited time, of course. If we don't act soon, it will be too late, in more ways than one. Get those nominations in.

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The History Beneath Our Feet: Discoveries in New York (with a footnote on New England)

The discovery of the remains of an eighteenth-century ship in the course of construction work at the World Trade Center site has been big news these past few days. Yesterday the New York Times performed a very useful service by calling attention to the wealth of similar discoveries that receive far less attention but are no less illuminating.
Raiders of the Lost City
Last week, workers at the World Trade Center site discovered a 30-foot section of an 18th-century ship, buried about 20 to 30 feet below street level. It’s a remarkable find, but hardly a first for New York. Since the late 1970s, hundreds of archaeological digs around the city have uncovered thousands of artifacts and structures — each of which have helped to shape our understanding of New York’s history. The Op-Ed editors asked 12 local archaeologists to share their most memorable discoveries.
Here is a partial screen shot of the map (the internet version is interactive; the print version places the explanatory captions along the sides):


Although we tend to think of historic preservation as involving primarily extant buildings, they are in fact only a part of our domain.  Especially in heavily developed urban areas of long standing, the traces of the past were regularly obliterated, but in many cases, they have been covered over and are now concealed rather than gone forever.

And as the case of the ship shows, and the "Op-Chart" makes even more clear, what is covered (so to speak) encompasses a wide range of things: not even just structures or the expected small artifacts.  Of the twelve examples described in the piece, half are foundations or other significant remains of structures, and at least two others—another ship (this time used in creating an embankment for new land), and a lost cemetery—similarly involved large fixed remains.

These are wonderful examples, but the other four are my favorites because they show how much the trained eye and mind can discern from the slightest evidence.  Two are objects, of the sort one might expect an archaeologist to find, but with special stories.  A Chinese porcelain teacup with a monogram allowed researchers to identify the owner as an early 19th-century grocer, "one of the very few cases in which a person has left such a direct archaeological signature."  A piece of glass with a personal mark turned out to tell part of a collective story:  the "x" carved into a wine bottle fragment "is most likely a West African Bakongo cosmogram, a depiction of the universe—strong evidence that Africans in New York preserved their ancestral communal beliefs despite their enslavement." In the second two cases, the evidence was even harder to discern.  A 1982 dig at Sheridan Square turned up telltale dark streaks in deep soil, "unmistakable proof that one spring day, in the 18th or early 19th century, a farmer had been there plowing his fields."  Finally, it was well known that the "Collect Pond" north of Foley Square had been "home to the city's tanning industry—but there were no artifacts to prove it." "[S]ubtle changes in the soil composition" from rotting organic matter used in the tanning industry pointed to the location of the site, which, when excavated, yielded artifacts of the industry—goat horns and tanning hooks—that confirmed the identification.  (Those seeking an additional window into the lost life of early New York may be interested in "The Dutchman Series" of historical mysteries by Maan Meyers.)

One can see the reason that we have historic preservation regulations and bodies empowered to enforce them.  In Massachusetts, for example, local historical commissions are charged with "the preservation, protection and development of the historical or archeological assets."  Our Massachusetts General Law moreover follows the national practice, mandated in the Historic Preservation Act of 1966:
new construction projects or renovations to existing buildings that require funding, licenses, or permits from any state or federal governmental agencies must be reviewed by the Massachusetts Historical Commission (MHC) for impacts to historic and archaeological properties.
Although we therefore undertake all the proper surveys and investigations as such occasions demand, thoroughgoing archaeological investigation remains among our chief desiderata.  An archaeologist for the State Historical Commission determined that evidence of both prehistoric and historic archaeology in the Amherst area is "an underreported resource."
We have to date even identified a mere handful of sites:  only 15 from the "ancient" period out of 15,000 in the Commonwealth; and only 6 from the "historic" period from the late 18th through 20th centuries. Even the effort remains to be made:  only 13 studies out of the more than 2,000 done in the Commonwealth from the 1970s through the early part of the current century.

And most sites that are known are merely listed, but "lack interpretative material." (Admittedly, in the case of Native American archaeology, there is a reason:  fear of plunder by "pot-hunters" and others insufficiently respectful of the indigenous past sometimes leads the authorities to document the existence of such sites without calling public attention to them.

Here in Amherst, we are embarking upon a major reconstruction of the heavily traveled but awkwardly aligned intersection of Bay Road and Route 116 (also related to the "Atkins Corner" project (1, 2).  I have been involved, in several capacities over the last ten years, in planning and deliberations regarding this site. This past winter, I read the most recent archaeological reports conducted prior to the start of the new highway work, and I am pleased to report that they found no significant Native American archaeological resources in the work area. From one perspective, this might be disappointing news. From another, we may be glad that no resources are threatened by the construction.  However, in this case, neither outcome would fundamentally alter the historical significance of the site, for the entire historical topography is of interest. It is a matter of more than artifacts. Although Amherst, as part of the larger Connecticut River drainage area, was home to Native Americans, evidence of their actual settlement here in the contact period is lacking. Instead, they visited the area seasonally for hunting, fishing, and gathering of food.  Several of their traditional transit routes became roads still used today.  Present-day Bay Road, running east-west, was one of these principal corridors, which became a major transportation route for colonials and citizens of the new nation.  As old maps show, the basic configuration has not changed since the 18th century. The road ran from Hadley to the Brookfields in the center of the territory, to Boston (the "Bay" in the name thus signifying the destination or end-point, as was the practice in that day. Along it, farms, mills, inns, and homes sprang up.  It was over this road that troops and matériel passed in every major military conflict from the French and Indian Wars through the Revolution to the War of 1812. (One can still encounter the occasional elderly resident who can recall hearing her grandparents tell of how their great-grandparents saw cannon and other supplies for Commodore Perry's Lake Erie fleet pass in front of their home.)

Among the plans of the Historical Commission is therefore the creation of an appropriately marked "Bay Road Corridor" National Historic Register District: in our view, the best means of acknowledging the long-standing and ever-evolving role of this historical topography.  New York City is not the only place where there is history under our feet.

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Friday, July 23, 2010

23 July 1793 Fall of Mainz to Coalition Forces

The conquest and then loss of the fortified city of Mainz by French troops in a span of some nine months constituted two turning points in the history of the Revolution and moreover came to symbolize stillborn prospects for German democracy.

Ironically, it was the moderate faction of the Girondins rather than the radicals who had recklessly led the French into war in April, 1792 (Robespierre famously warned that people tend not to be fond of missionaries with bayonets). Initially, the conflict went badly. As the situation deteriorated in August, the people of Paris overthrew the monarchy. The fall of two key frontier fortresses left the country open to invasion, and led to the “September Massacres” of suspected counterrevolutionaries.

The situation changed dramatically when the revolutionary army held its ground and scored a stunning symbolic victory over the seasoned Prussian troops at Valmy on 20 September. The National Convention declared France a republic two days later. Thereafter, the French went over to the offensive. General Custine’s Army of the Vosges captured Speyer, Worms, Mainz (21 October), and Frankfurt in barely a month, mainly because the easily panicked French troops faced little opposition.

The Mainz episode came to epitomize, for contemporaries and later generations alike, the perils and promise of revolution, not least the political engagement of “intellectuals.” Then as now, internal developments commanded the most attention, and the political significance outweighed the military. Debates over the past have a way of becoming arguments about the present and future.

Local radicals founded their own Jacobin Clubs and, in collaboration with the French troops now promising liberation to all peoples seeking assistance (19 Nov.), set about overthrowing the old social order on the left bank of the Rhine. The results were mixed: a bold experiment in democracy that drew support from a wide social spectrum but never became truly populist or practically successful. The conditions were not auspicious. As the idealism of the revolutionary leaders, many of them intellectuals or former officials, collided with the reality of public skepticism or hostility, frustration and French power-political needs led to ever more coercive measures, recapitulating the transition of the Revolution itself from liberalism to authoritarianism. Finally, the new “Rhenish-German National Convention” declared an independent republic (18 March) and then humiliatingly and almost immediately (21 March) sought union with France, which had discovered a belief in “natural” frontiers.

Emergency coinage from the siege of Mainz,  issued by decree of May 1793
coins of similar design were struck in three denominations—1, 2, and 5 sols—in copper, bronze, and bell metal

left: obverse, derived from a coin of the constitutional monarchy, adapted with republican language
right:  reverse, denoting the denomination, and bearing the legend, coinage of the siege of Mainz


















Within a fortnight, the high hopes seemed a cruel illusion. Threatened by Coalition forces, Custine had been forced to withdraw the bulk of his troops. The Allies encircled Mainz on March 30, invested it on April 14 and began shelling it on June 18. The bombardment became a sort of horrible spectacle for the population of the surrounding region.


 The city finally fell on July 23. Physical damage was tremendous.  The author Johann Wolfgang Goethe, who accompanied the Coalition troops in 1792 and 1793 observed:
Here we found the most lamentable state of things.  Ashes and ruins were all that was left of what it had taken centuries to build. . . . The mind became distracted at the sight—a much more melancholy scene than that of a town burnt down by accident."
The departing French pledged not to engage the Allies for one year, and many joined the revolutionary armies of the west, where their skill contributed greatly to the crushing of the Vendéan revolt. The fate of their German collaborators was less gentle, ranging from harassment to prison terms, exile, and lynching. The most celebrated primary source is the account by Johann Wolfgang Goethe, who accompanied the besiegers but displayed great empathy for all participants (especially civilians) and a spirit of reconciliation all too rare among the victors.  He several times intervened to protect local revolutionaries from attack.  Confronting a man who "swore deadly vengeance against the Clubbists,"
I advised him to use milder language, and represented to him that the return to a peaceful and domestic state of things should not be destroyed by a new war between fellow-citizens, and by feelings of hatred and revenge, as otherwise our misfortunes would never end;
The fall of Mainz, combined with other blows that summer, from the assassination of Marat to the spread of bloody rebellion in both the west and south of France, precipitated the levée en masse and escalation of the incipient Terror. The siege of the city marked the beginning of a series of foreign military setbacks that would stretch from April 1793 to June 1794. Not coincidentally, the turn in the tides of military fortune eventually brought about a softening of support for the Terror and the overthrow of Robespierre and his faction in July. Mainz changed hands several times in 1794-1795, but under the Treaties of Campo Formio (1797) and Lunéville (1801) returned to France and became the Prefecture of the Department of Mont-Tonnerre. In 1814, Mainz was restored to German sovereignty.


Although one should beware of exaggerating the importance of the Mainz revolution, it was the first modern German democratic movement. The problems it posed—the strengths and limitations of both force and idealism, the challenge of implanting democracy under occupation, and the dilemma arising when the majority will rejects democracy—remain topics that we continue to debate in both the military and political realms.

(adapted from a piece I published earlier in another setting)
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Thursday, July 22, 2010

Tongue-Tied

Writing about the great journalist Egon Erwin Kisch in passing a few days ago brought up this anecdote:
Kisch's visit to Australia as a delegate to an anti-fascist conference in 1934 was later chronicled in his book Australian Landfall (1937). The right-wing Australian government repeatedly refused Kisch entry because of his previous exclusion from the UK. Under the Immigration Restriction Act 1901, visitors could be refused entry if they failed a dictation test in any European language. This law was used to enforce the White Australia policy by ensuring that potential Asian immigrants were given an impossibly hard test. Kisch was one of the very few Europeans to be given the test; he passed the test in various languages but finally failed when he was tested in Scottish Gaelic. The officer who tested him had grown up in northern Scotland, and did not have a particularly good grasp of Scottish Gaelic himself. Kisch then took matters into his own hands. He jumped five meters from the deck of his ship onto the quayside at Melbourne, breaking his leg in the process. This dramatic action mobilised the Australian left in support of Kisch. In the High Court case of R v Wilson; ex parte Kisch the court found that Scottish Gaelic was not within the fair meaning of the Act, and overturned Kisch's convictions for being an illegal immigrant.
And we think we have problems with our immigration law.

A Great Historian Having a Bad Day

Writing about analogies recently and going back to David Hackett Fischer's Historians' Fallacies (1970) allowed me to rediscover a few howlers.

This one, by the great historian of popular movements and Revolutionary France, George Rudé, shows what happens when vigilance slackens and we lose control of language. His intended point might have been a good one, but the carelessness of the wording and logic undercut it and cause us to question the soundness of the analysis itself:
Thus, beheaded, the sans culotte movement died a sudden death; and having, like the cactus, burst into full bloom at the very point of its extinction, it never rose again.
Ouch. Perhaps not fatal, but painfully embarrassing.

David Hackett Fischer observes, "This statement combines three disparate analogies. It is objectionable on both stylistic and substantive grounds.  As a mixed metaphor, it is a literary monstrosity.  As a multiple analogy, it is a logical absurdity."

Moral: Even great historians have bad days. As the blurb on the back cover from Robin Winks in the New York Times Book Review says, "Scarcely a major historian escapes unscathed.  Ten thousand members of the American Historical Association will rush to the index and breathe a little easier to find their names absent."  (hmm, working on the quantitative reasoning and logic of that one, too.)

Lesson:  Watch out. (but be charitable)

Heavier Things Again: Missing Mackerras

Posting the opera video reminded me that I recently forgot to upload a post about the passing of the conductor Charles Mackerras.

He was a cosmopolitan in the best sense: born in Schenectady, NY, raised in Australia, working in London, and at home in all senses of the word, in Czechoslovakia and Czech culture.  I will miss him for his interpretations of both Czech works and music of the Classical era alike (some of which overlapped).  He is perhaps best known and will be best remembered for the former, but it would be a shame were we to neglect the latter.

Although I have always been a devotee of so-called early music and the classical repertoire played on period instruments, being a historian does not mean being an antiquarian, much less abandoning the critical spirit.  I myself was drawn to performances on early/authentic instruments because I wanted to hear what the sounds of the time were like, and knowing the constraints of the instruments further helps us to understand how the music was composed and played. This would be a long discussion, so suffice it to say that, as Richard Taruskin and others have not ceased to point out, the idea that we can achieve an objectively "authentic" performance is a fantasy for a variety of reasons, and poorly conceived performances on period instruments can be as deadly in their way as overblown modern ones.

Mackerras represented that ideal combination of originality and common sense. He realized, for example, that what really mattered were  authentic performance styles and techniques:  properly employed, smaller, historically appropriate ensembles, and period performance practices can be refreshing and revelatory, too. It was thus precisely refreshing and revelatory to hear him conduct not just forgotten gems such as the symphonies of Voříšek and Arriaga, but also the standard repertoire by Beethoven, Mozart, or Brahms.  In the end, though, he remains, for me as for many others, inseparable from Janáček.

Jessica Duchen's music blog almost immediately came out with a fine tribute, and she concisely sums up his legacy:
Celebrated for an exceptionally wide range of achievements, from championing Gilbert & Sullivan to pioneering the slenderised sounds that mingle period-performance-practice with modern instruments, from working with Benjamin Britten to resuscitating the reputation of Janacek almost single-handed, Mackerras has made the impact of a musical meteorite.
The piece includes video of an interview (which shows his appealing modest and sense of humor and provides some information on his instrumental training and his early connections to Czechoslovakia when he studied under Václav Talich).

And, from NPR:

• Tom Huizenga, "Conductor Charles Mackerras Dies at 84" (Mackerras Conducts Janacek with audio of his performance of 'Kat'a Kabanova')
• Tom Huizenga, "Charles Mackerras Played My Wedding"

Wednesday, July 21, 2010

Lighter Treatments of Heavier Things: fun with opera

A stray comment from a friend in an unrelated discussion about video reminded me of one of my favorite films in one of my favorite genres: the short but smart film that manages to be humorous because it is truly well informed.

This one is Kim Thompson's "All the Great Operas in Ten Minutes," which I've sometimes managed to bring into my teaching for one class or another. It provides students with a sense of classic opera plots while gently poking fun at the genre and at us by in effect applying our film rating system to this canon of classical music.  Anyway, you'll see.



Perhaps just the thing when the temperature is 90 (and AccuWeather tells me that the "RealFeel," i.e. with humidity, etc. is 97 [36 C]) and one needs a break from work or other burdens. And it only takes 10 minutes. Come on, as Kim would say. Give it a try.

Socialism everywhere?

A recent John Nichols article in The Nation was entitled, "Is the Financial Regulation Bill 'Socialist'? Don't Make the Socialists Laugh."

Noting that our new, up-and-coming Republican Senator from Massachusetts, Scott Brown, endorsed the bill, he predicts, "it will be harder for Republican legislators to claim the proposal offers more evidence of the forward march of socialism in America." Well, not necessarily: I heard a lot of commentary to the effect that this just proves Brown is not a real Republican—so typical of Massachusetts, and all that. Anyway, Nichols returns to his main point:
Why are so many GOP senators so very determined to block the bill, which cannot be debated unless sixty senators senators support a cloture vote?

What's the problem?

Republicans say that it is not that they oppose regulating Wall Street and big banks. Rather, the argument goes, they are afraid of big government—of the "socialist" sort . . .
He then goes on to cite some real socialists, who propose far more radical measures, such as nationalization of banks, heavy taxation of corporations in order to finance free college education, and the like, and concludes:
And that, of course, is the point: Socialism is not some vague, ill-defined concept. It's a well-established approach to economic and social issues. Americans can agree o[r] disagree with that approach—and they do—but it is absurd to suggest that a little bit of regulation for Wall Street and the big banks amounts to a dramatic abandonment of capitalism.

Almost as absurd as trying to scare people into thinking that putting an end to credit-card and loan abuses will deny braces to kids or pay to bank tellers.
Nothing to worry about, for as another piece in the same issue explains,"a Progressive Presidency Is Impossible, for Now."

As chance would have it, across the Atlantic, the week before, Harry's Place made a similar point, more simply:

Just imagine . . .

Overheard:  "I took a course on "The Puritan Imagination" because I figured the Puritans didn't have a lot of imagination, so it wouldn't be much work."