Volume 19, Number 2, Summer 2009 Friends of Franklin, Inc. P.O. Box 40048, , PA 19106

Visit: www.friendsoffranklin.org

“Plough deep, while Sluggards sleep; And you shall have Corn, to sell and to keep.” Poor Richard, August, 1756 President’s Message By Roy E. Goodman

The “greening of America” is capturing the attention of Americans and the rest of the world in more significant ways than ever before. If Franklin had his wish realized of being able to visit, 200 years after his death, and experience the 21st century, what observations on science, technology, agriculture and medicine would he make? Friends, I encourage you all to respond to this query, for a future article in the Gazette. There are no right or wrong suggestions or answers, merely opinions that will serve as a springboard for exploring a different facet of Franklin we don’t often consider. Of course, economics, education, health care, communication, think tanks, learned societies, government and community based organizations may and probably should impact your opinions. During the recent Franklin events in June at the Conococheague Institute in Mercersburg, Pennsylvania (Franklin County), I observed a highly productive agricultural region of the state where communities appear to be fairly affluent and somewhat self sufficient. Ben was certainly a promoter of buying local Detail from Bowles’ Moral Pictures, Broadsides Collection and promoting home grown talent and c. 1796. Courtesy of American Philosophical Society resources. There were many farms exploring new technologies and welcoming blowing of Furnaces by a Fall of Water.” As it Invention into this Part of America, and visitors to learn about these changes. happened, several books in Franklin’s library of demonstrating by his own Example its Agriculture is an often under appreciated actually “describ’d the same contrivance.” Practicability.” Here is yet another example yet vital sector of the American economy, He reassured his correspondents, “It of Franklin’s support for problem solvers and one that occupied much of Franklin’s is however not an uncommon thing for and ingenious members of a community. attention and many of his colleagues. ingenious Men in different Ages, as well as I know that the Friends of Franklin In a letter of September 20, 1788, in different Countries, to hit upon the same can promote these vital Franklinian to Benjamin Chambers and others of Contrivances without knowing or having qualities of intellectual curiosity and the Chambersburg, (the Franklin county seat), heard what has been done by others.” The practical application of new ideas through Dr. Franklin commented diplomatically on American “inventor” had “the Merit of having a variety of means to folks pondering “what was suppos’d a new Invention, the introduc’d the Knowledge of this useful America’s future.

1 Franklin Gazette published quarterly by: Letter to the Editor:

The Friends of Franklin, Inc. Franklin, Agriculture and P.O. Box 40048 Philadelphia, PA 19106 the Physiocrats

856.833.1771 Fax: 856.854.0773 As a professional economist, I’d perpetuated. He wished to avoid email: [email protected] like to take exception to Franklin’s the pitfalls of other nations, and Website: comments on agriculture in the maximize the natural advantages of www.friendsoffranklin.org Spring 2009 issue of Franklin Gazette his own country. In his day probably (p. 7). Overall Franklin was a superior close to ninety per cent of the Officers: economic thinker, ahead of his time population made their living from Roy E. Goodman, President in his rejection of mercantilism and agriculture. Franklin was no enemy Ralph Archbold, Vice President the labor theory of value, and his of manufacturing or innovation, but advocacy of free trade, low taxes, he saw things he disliked in Europe, Lee Knepp, Treasurer new technology, and laissez faire. where he discovered a large, poor, Pamela Hartsock, PhD, Franklin is considered the father of underclass. Wasn’t it better, he Secretary America’s capitalist growth machine. reasoned, to achieve “a general However, Franklin, under the happy Mediocrity”—with few great Directors: influence of the French physiocrats landed proprietors, and most people Eleanor Gesensway (Dupont, Turgot, Quesnay), wrongly cultivating their own lands? Stuart Green, MD stated that “agriculture is truly With the great wealth of natural E. Philip Krider, PhD productive of new wealth” while resources in America, might not the Karl T. Molin commerce and manufacturing were broad adoption of scientific farming Jackson Boswell not. Of all people, Franklin, who was methods, and the study of the same Frank Batchelor a printer, should have known better. lead the country in a proper direction? In fact, it is clear that technology, Wouldn’t maintaining a system of inventions and new machinery have agricultural opportunity through a Advisor to the Board: transformed agriculture. Since democratic disposal of land and land Doug Hall Franklin’s time, manufacturing tenure ensure prosperity? has been far more productive than In all things he sought to balance Executive Director: agriculture. Modern-day economists interests fairly. Hence, in his November Kathy DeLuca have proven that both commerce 27-29, 1766 letter to the editor, signed 856.833.1771 and manufacturing (especially of “Arator,” he protested favoring the Fax: 856.854.0773 capital goods) are highly productive. interests of manufacturers over those Email: of farmers. As Earle D. Ross observed [email protected] Best wishes, AEIOU, in his essay, “Benjamin Franklin as Mark Skousen an Eighteenth-Century Agricultural Leader,” published in The Journal of Editor: Political Economy (xxxvii, 61), “the Carol Wojtowicz Smith How Would Franklin small independent farmer appeared [email protected] to [Franklin] as the basis of social and 856.429.8331 Respond to Mark? political security alike in the colonies and in the new nation.” Of course, we don’t know. Co-Editor: Claude-Anne Lopez Franklin’s public celebration of But he might observe, as did agriculture, scientific farming, and the Sidney Sherwood, in his Tendencies training of future farmers, gave voice Publication schedule: in American Economic Thought, that to a segment of society that could not March, June, September and De- Franklin was “half physiocrat before effectively represent itself at the time. cember. Newsletter submissions the rise of the physiocrat school” (p. These small proprietors provided are encouraged. Deadlines are 9). value to America through their the 15th of the month preceding Mostly, though, Franklin was industry, which Franklin encouraged focused on what was the most publication. Submissions by e- as the way forward for the new nation. mail or computer disks (text-only appropriate direction for the America of his own time, and he would probably format) are preferred. Kate Mearns Ohno argue that we should do the same. Associate Editor Franklin noted what was worth The Papers of preserving in American society, and gave thought to how it should be

2 Friends’ News from Around the World

Dave Wang at Benjamin Franklin House in Craven Street

Friend Dave Wang reports that his works on Benjamin Franklin and China have recently been warmly received in Hawaii where his work is recommended for history classrooms and in India where The Indian Institute of Oriental Studies has published his article in its journal, The Friends of Franklin at Craven Street event, Washington DC Historical Review: A Biannual Journal of History and Archaeology. This brings the From the Benjamin Franklin House honesty, and his unique legacy in , number of countries to seven that have web site: Several Friends gathered in still has much to teach us today. The either published his papers or invited Washington, D.C. on June 3 for a gala Ambassador made an amusing and apt him to deliver lectures on his research: fundraising event for The Benjamin Franklin comparison between Benjamin Franklin Australia, China, India, Italy, Portugal, House. “The Newseum, which stands, like and Sir David Frost, two icons treasured the United Kingdom and the United Franklin, for free speech and a free press, on both sides of the Atlantic, before Sir States of America. In April 2009, he was was the perfect venue for the gala. As David entertained all with tales of his invited to present his work on Benjamin Franklin noted in 1776, “the people have a amazing life as the interviewer of Britain Franklin and the Great Wall of China at right to freedom of speech, and of writing and America’s leaders over the last forty Benjamin Franklin House in London (seen and publishing their sentiments, therefore years.” Friend Cecilia Brauer entertained above). More information is available at: the freedom of the press ought not to be with a brilliant performance on the glass http://foundingfathersandchina.blogspot. restrained.” Over 175 guests, including armonica. Shown in the photograph here com/ Dave has also had another sponsors KPMG, joined us for the sparkling are: left to right Teo Molin, Cecilia Brauer, paper, “Benjamin Franklin, George evening proceedings. Mr. Robert H. Smith, Lee Knepp, Anne Boswell, Marty Mangold, Washington, Thomas Jefferson and a Newseum founding partner, and a key Jackson Boswell, Jane Mangold, Jessica Chinese Civilization,” reproduced in the supporter of Benjamin Franklin House, for Beinecke, Marshall Lilly, and Delaware online publication of the 2009 issue of whom their Scholarship Centre is named, Congressman Mike Castle. See the the Virginia Review of Asian Studies opened the dinner. He noted Benjamin Benjamin Franklin House’s website for which can be accessed electronically: Franklin House’s mission in sharing information on programming and upcoming http://virginiareviewofasianstudies.com/ Franklin’s spirit of humanity, dignity, and events: www.BenjaminFranklinHouse.org current3.html

Friend Carla Mulford was elected to membership in the American Antiquarian Annual Appeal Society last spring, a singular honor Twitter bestowed on a very select number of individuals. She also took part in a program The Friends of Franklin’s sponsored by the National Archives last fall Imagine if Franklin were alive today, annual appeal is ongoing. available in video on the web at http://www. surely he would be “tweeting” information Your contribution helps archives.gov/nae/news/featured. Scroll to what we would imagine to be a multitude down to “The Men Who Signed the Treaty of followers. Now you can join the with the Friends’ general of Paris.” For more complete information Friends of Franklin on Twitter by following operating support and, as on Dr. Mulford’s accomplishments see FranklinFriends. Enjoy our occasional always, is tax-deductible. Penn State’s website: http://live.psu.edu/ tweets of Franklin quotes, updates on the Please be as generous as story/40532. Carla writes that she only Friends, and other interesting commentary wishes “Leo Lemay were here to help from our followers. you can. celebrate!” 3 Franklin and Mortgages By Robert E. Wright Stern School of Business New York University

Part I

Once again, finance is a dirty word. Oh, a certain segment has always scoffed upon it but the sentiments of the average American, Joe and Josephine the Depositors if you will, are generally pro-cyclical. When employment and the market are up, finance is grand. When they are a little down, finance is tolerated. When the financial system appears to have cost Joe and Josephine their jobs and savings, financiers can’t duck low enough. The pro-cyclicality of sentiment is lamentable because it leads to lax public regulation and private monitoring of financial institutions and markets in boom times, precisely when supervision should be at its peak, and to onerous regulation and monitoring in hard times, just when the financial system most needs to be cut a little slack. Americans’ love-hate relationship with the financial system is so hoary and so deeply ingrained that most observers doubt it is possible to alter it much. Financiers, regulators, and policymakers should therefore take the procyclicality of sentiment as a given and plan accordingly. That means they need to work together to avoid, or at least moderate, the excesses associated with speculative asset bubbles and the crashes that inevitably follow. One major tool in that endeavor, hitherto Franklin’s loan agreement with Samuel McCall. barely touched even within the ivory towers of Courtesy of the American Philosophical Society. academia, is financial history. Only a handful of us study the subject with alacrity but even our paltry output evades the notice of those diplomat, an economist so skilled -- or at of Germanic origin -- “have passed here who should be most conversant with it. Did least slippery -- that both Adam Smith and of late.” Franklin believed them then worth you know that the subprime mortgage debacle Karl Marx lauded him, an entrepreneur, only 32 shillings Pennsylvania currency, of 2007 was the seventh time in American inventor, militia commander, part-time down from the 34 shillings that they had history that a mortgage securitization scheme nudist, partisan politician, philanthropist, earlier commanded. The low rating of blew up? Of course not. The amazing thing is postmaster, printer, psychologist of the Carolines in Philadelphia of course that the leaders of the big banks, the GSEs, considerable merit, a quartermaster, rake, explained their absence in that market.1 and the major regulators didn’t either, even scientist, and statesman. He was also He also posthumously developed a form of though it was their business to know. Joe and a financier, of the most creative variety. microfinance that did not catch on globally Josephine the Depositors could know more A leading proponent of paper money, until just a few decades ago.2 about financial history than they do too. Sure, an innovative way of financing colonial Franklin had little to say about financial historysounds boring, mind numbing governments, Franklin was also in the mortgages but as usual what he did utter in fact, but it doesn’t have to be. vanguard of colonial America’s most serious was quite brilliant. He knew that his fellow One non-boring approach to financial flirtations with fire and life insurance. Out Philadelphians had two options for acquiring history is to view it through the lens of of necessity, he was also quite an expert land, leasing it or buying it. He also knew great financiers like J.P. Morgan, Anthony in foreign exchange, including the local that the latter was preferable when it could Drexel, Jay Cooke, Stephen Girard, value and availability bills of exchange and be accomplished and in fact explicitly Alexander Hamilton, and, finally you may foreign coins. In March 1741, for example, argued as much. The tenant was of course be thinking, Benjamin Franklin. Franklin Franklin informed James Alexander of to some extent under the sway of the was many things: a bureaucrat and New York that “no Carolines” – gold coins landlord. Franklin experienced that tyranny 4 firsthand because his landlord in Paris “was means that borrowers will be willing to take to me, stopped one day at my door, and forever renewing old demands or inventing on much greater levels of speculative risk as asked me if I was the young man who had new ones.”3 Tenants were less productive all they have to fear is losing a property they lately opened a new printing-house. Being than freeholders, moreover, because the personally have invested little or nothing in. answered in the affirmative, he said he was tenant’s incentive to improve the property None of this is to say that Franklin sorry for me, because it was an expensive was directly proportional to the length of his and his fellow Philadelphians enjoyed undertaking, and the expense would be tenure, which was usually short.4 mortgage markets that were superior to lost; for Philadelphia was a sinking place, The difficulty was that, then as now, ours in every way. The short-term callable the people already half-bankrupts, or near few people had enough cash saved up mortgage, the other type of private being so; all appearances to the contrary, to buy a substantial home or lot outright. mortgage product available to Franklin such as new buildings and the rise of rents, Some type of financing was usually and other Philadelphians was, in fact, a being to his certain knowledge fallacious; necessary and generally speaking there disaster waiting to happen. And happen for they were, in fact, among the things were three types available, government that disaster did, in the 1760s. The callable that would soon ruin us. And he gave me mortgages, of which more later, private mortgage was so bad, in fact, it played a such a detail of misfortunes now existing, mortgages callable by the lender after at major if hitherto unappreciated role in the or that were soon to exist, that he left me most a few years, and private perpetual Imperial Crisis that ultimately ended with half melancholy. Had I known him before I interest only mortgages called ground the Declaration of Independence. engaged in this business, probably I never rents. To your ears, the last mentioned type As I will show in a forthcoming book should have done it. This man continued to probably sounds disturbingly modern and called Fubarnomics, and as Ron Michener live in this decaying place, and to declaim unpleasant, even subprime-like. In fact, a and I will demonstrate in a forthcoming book in the same strain, refusing for many years large percentage of the Alt-A and subprime on the economic causes of the American to buy a house there, because all was going to destruction; and at last I had the pleasure of seeing him give five times as much for one as he might have bought it “Franklin had little to say about mortgages but for when he first began his croaking. as usual what he did utter was quite brilliant.” Apparently, most people, except for a few “croakers” like old Sam Mickle, expect housing prices to always rise. In the long mortgages that began defaulting in 2007 Revolution, the French and Indian War term, they are undoubtedly right: more were “IO” or interest only. The funny thing fomented an economic expansion in the people and higher productivity combined is that in Franklin’s time, ground rents colonies, especially the Middle ones. After with fixed quantities of land means price were considered gilt-edged securities, as an initial period of adjustment, the colonial appreciation. But that does not mean that safe as British, and later U.S., government economy rapidly expanded during the price movements will be monotonic – bonds. How can that be? war. Legislatures emitted large quantities ever heading in the same direction. They Before anyone embarrasses of paper money known as bills of credit, could very well experience increases themselves with fruity cultural pseudo- stimulating demand. The British military and declines with eventual reversion to explanations, I should point out that also spent huge sums, much of which an upward trend line. The lesson here ground rents differed from subprime IO flowed in from London in the form of gold may be that public schools have to do a mortgages in two important respects. First, and silver coins. Colonial privateers – legal better job teaching students about rational ground rents had a much lower loan to pirates -- plied the seas, seizing and selling investment strategies. Filling them full value (LTV) ratios – from 25 to 75 percent numerous French ships and their lucrative of stories of the failed optimists would generally -- so borrowers lost a bundle of cargos. Trade, especially illicit trade with certainly help. Vicarious pain is not as their own money if they defaulted. Second, the foreign West Indies, expanded to effective as real pain, but it is cheaper and ground lords, the owner of the ground rent unprecedented proportions. can be inculcated through repetition. We payment stream, had substantial recourse, Because the Middle Colonies were just have to be careful not to create too including writs that empowered sheriffs on fixed exchange rates and had plenty many croakers in the process. to enter the property and take away and of foreign exchange, the prices of traded The colonists had no such aid. Stories auction off goods to the value of the debt commodities remained tied to world of the South Sea Bubble cast doubt upon owed. If necessary, the ground lord could markets and showed only a 20 to 30 stock markets and corporations, not land. take title to the land and imprison the percent increase during the war. Prices Like other asset bubbles, however, the debtor until all debts and damages had of non-traded goods and real estate, colonial real estate bubble could not last. been repaid. Few people were so daft as to by contrast, enjoyed no such tether Economic conditions soon completely suffer such a melancholy fate by defaulting and soared by 200 to 300 percent. Why reversed. The bulk of the military left, the on a mere interest payment. people were willing to pay so much for privateering harvest ended, and, due to The lesson that I take away from this, houses, shops, lots, and farms isn’t clear. unprecedented exertions by the British Navy and hope that policymakers will too, is that Investor mentality never is, especially and customs officials, the lucrative trade with interest only loans per se are not evil and during asset bubbles. However the the enemy, and even lawful trade, declined hence should not be banned or regulated following story, related by Franklin, may dramatically. But large orders for imports into obscurity. Rather, the real culprits are give us a clue: had already been placed and were not easily high loan to value mortgages, regardless There are croakers in every country, remanded. The colonies therefore suddenly of the amortization schedule, and the always boding its ruin. Such a one then found themselves running big trade deficits. lack of recourse in case of default. High lived in Philadelphia; a person of note, an Exchange rose and specie flowed out. At loan to value means that even modest elderly man, with a wise look and a very the same time, bills of credit were paid in as decreases in prices give borrowers ample grave manner of speaking; his name was taxes and retired at a rapid rate, dropping incentive to default. The lack of recourse Samuel Mickle. This gentleman, a stranger continued on p. 6 5 Franklin and Mortgages continued general wreck of credit in 1772” during his best Memories of any in the World.”6 As from about £2.50 sterling per capita in 1760 second mission to England by not being in the value of lands began to fall, lenders felt to £1.05 in 1763. debt. “Being out of debt myself my credit the mortgages were undercollateralized A nasty bout of deflation occurred next. could not be shaken by an run upon me: and began to call for the principal. As Business conditions throughout the colonies Out of debt, as the proverb says, was interest rates increased, they also began were dismal in 1764 and worse in 1765. As being out of danger.”5 to call simply to reinvest the principal the monetary contraction continued, bills of Many, nay apparently most, American at higher rates. Yes, there were usury credit became almost unattainable, even colonists were in a much more leveraged laws or interest rate caps but they were among wealthy merchants. In February and hence dangerous position. The as about as effective as our own drug 1764, New York merchant Gerald Beekman collapse became more pronounced as laws. The result was a rash of lawsuits reported that “all the money seems to be the tight monetary conditions persisted. In that led borrowers to press their debtors vanished out of our City and C[o]untry.” 1765, the editor of The New York Gazette in turn. Soon, a vicious cycle haunted Despite having more than £12,000 due to claimed that “there is such a general many colonists. Pressed to pay a debt in him on bond, he confessed to being unable to scarcity of Cash that nothing we have will cash or suffer the loss of their estates, raise even £500 at any rate of interest. Trade Command it & Real Estates of Every kind men responded defensively by pushing suffered as a consequence. “Commerce is are falling at least one half in Value.” That their friends, neighbors, and business so stagnated here,” New York merchant was a major problem because “Debtors associates to pay up or face the sheriff. John Watts reported, “that little or nothing that were a year or two ago responsible In a 1768 pamphlet published in London, sells.” “Trade in this part of the world,” wrote for £1000 can not now Raise a fourth part Stephen Sayre recounted an instance another New Yorker, “is come to so wretched of the sum . . . . Men of the best Estates in New Jersey “of one merchant sueing a pass that you would imagine the plague amongst us can Scarce Raise money seventy shopkeepers for debt; the seventy had been here, the grass growing in most enough to defray the Necessary Expences had lands, and their lands were sold at trading streets; and the best traders so far of their familys.” Later that same year, public auction for no more than the sum from wanting assistance of a clerk, rather William Donaldson described the situation owing, by which means seventy families want employment for themselves.” in New York in yet starker terms: were deprived of their substance.” That Throughout the colonies, tight money The face of money is hardly to be seen story sounds exaggerated if not outright and depressed business conditions brought in this Country, every man is suing his apocryphal but private correspondence a wave of bankruptcies. Watts reported in Neighbour which produces daily Bankrupts and sheriff sale advertisements were August 1765 that business in New York & the most pitiable scenes of distress; a replete with similar tales of monetary woe. was “very languid, the weak must go to the Farm in this Neighbourhood was sold a few Wall, frequent Bankruptcys & growing more weeks agoe by the sheriff for £350 which Endnotes the owner refused £1200 for 18 [months] frequent.” Another source noted that high Benjamin Franklin to James Alexander, agoe, which is the alteration of times here, 1 flyers were also laid low: “People were not 6 March 1740/1, Reel 1, No. 199, Rutherfurd owing chiefly to the scarcety of money & afraid of entering into deep Engagements Collection, New York Historical Society, New distress on Commerce. equivalent to our Circulation, which being York, N.Y. This letter will be published in the Such scenes became commonplace. since called in by Taxes or remitted for addenda to the Papers of Benjamin Franklin. “I know of sundry Estates that has been Goods occasioned a sudden Stagnation, Bruce Yenawine, Benjamin Franklin and taken by Execution,” a New York merchant 2 and by calling upon and suing one another the Invention of Microfinance, ed. by Michele reported late in 1766, “and sold for not brought many to ruin.” Costello, (London: Pickering & Chatto, 2010). more than one third of their value owing Those who had borrowed to buy This book was born of a conversation that I had to the scarcity of money” and concomitant real estate during the bubble were with Roy Goodman after my speech. Tragically, high rates of interest. And yet British especially hard hit. The scarcity of money Dr. Yenawine passed soon after completing policymakers did nothing to alleviate the precipitated a collapse in real estate prices his dissertation, relegating it to an undeserved colonists’ plight and in fact worsened it with from the high levels they had reached by obscurity from which we hope to rescue it with very strict trade regulation enforcement, the end of the French and Indian War. It this publication. the Sugar Act, which constrained colonial wasn’t the falling real estate prices per BF to Jonathan Williams, Jr., June 13, trade yet further, and the Currency Act, 3 se that hurt, it was the fact that many 1782, quoted in Mark Skousen, ed., The which prevented the colonists from printing people had borrowed to buy what would Compleated Autobiography by Benjamin Franklin legal tender bills of credit. soon be grossly overpriced assets that (2 vols., Washington, D.C., 2007), , 273. Not that the British were entirely to ii led to bankruptcy. Recently in a county BF “Observations on America,” 1766, blame. The private callable mortgage 4 in China’s Yunnan province a bubble in Papers of Benjamin Franklin, , 353. exacerbated the situation. Today, in the xiii a special type of tea called Pu’er burst – BF to , Oct. 7, 1772, vast majority of cases, mortgages are 5 please forgive me if I just inadvertently quoted in Skousen, ed., The Compleated not callable. Homeowners who continue swore in a foreign language. The local Autobiography by Benjamin Franklin, , 74-75. to make scheduled payments cannot be ii farmers’ aspirations were shattered and As quoted in Alan Houston, Benjamin evicted from their homes, no matter how 6 their cash flows crimped but their balance Franklin and the Politics of Improvement (New low the market value sinks. Similarly, sheets remained intact. They complain, Haven: Yale University Press, 2008), 49. for example, of owning fancy automobiles those with fixed rate mortgages need that they cannot afford to put gasoline into not worry about facing higher payments and having to shift production to corn and should interest rates increase. Colonists Editor’s Note rice. Because they were largely free of who borrowed on callable mortgages, by Part II of Robert Wright’s lecture given at debt, however, they still have their farms, contrast, faced both risks. “Creditors are the Friends of Franklin symposium in April much improved during the boom, and can a kind of People,” Franklin wrote in his 2009 will be printed in the fall issue of the sell their fuel-less cars for cash. As Mark “Advice to a Young Tradesman,” “that have Gazette. For purchase of the symposium Skousen points out, Franklin dodged “the the sharpest Eyes and Ears, as well as the CD see p. 9. 6 In His Own Words Benjamin Franklin, Creditor: “The Affair requires immediate Care”

On July 23, 1753, Franklin wrote you may attach for Franklin and Williams, son, at Burlington, who was formerly from Boston to his son William on a Grant’s Right to that Land by Virtue of empowered by you, and he will take matter of family business. Benjamin’s his Mortgage. I suppose the Mortgage is the steps necessary, if I should not be brother John, the postmaster at Boston, recorded. I recommend this Affair to your return’d. I am your loving uncle, was attempting to settle their father’s Diligence which I hope will be effectual. estate, and one of the estate’s debtors, Your loving Father B. Franklin” Joseph Grant, had just gone bankrupt. In order to secure that debt, now due to BF Franklin must have bought out his John Franklin and Jonathan Williams, “Pitts and Wife join’d in the Mortgage, nephew’s second mortgage on Mrs. Pitt’s Sr. (nephew by marriage to both John and I think I was an Evidence [a witness house on Walnut Street, for on June 18, and Benjamin), his brother Benjamin to the document] it must be about 8 or 1767, he wrote from London to Joseph suggested sending a power of attorney 9 Years ago. Isaac Griffitts was Grant’s Galloway, his attorney in Philadelphia, to so that an attachment Attorney.” “I never have heard from you what was could be placed on some property Ten years later, Benjamin Franklin done in the Affair of Mary Pitts, which I on which Grant held a mortgage in believed that Grant’s debt to John left in your Hands.” Galloway’s answer Philadelphia. To avoid Grant’s other Franklin and Jonathan Williams, Sr. was has not survived, but on Oct. 13, 1767, creditors having first claim, John Franklin still unsettled. John Franklin had died in Franklin’s wife, Debbie, wrote that suggested to his nephew that he register 1756. Trying to help the owner of the land Galloway told her that he had answered the attachment before distributing the and house so it could be sold, Franklin Franklin’s query. “Polley Pitts” [Polley mail from Boston—which might tip off wrote to his nephew Williams on April 13, was a nickname for Mary] was visiting Grant’s other Philadelphia creditors. 1763: Debbie while she was writing to Franklin, Here is the relevant portion of Benjamin “Loving Kinsman, and sent “her Dutey” to him. Writing Franklin’s cover letter to his son, which You may remember, that about ten again to Franklin on June 30, [1772], shows one way that ordinary American years since, when I was at Boston, you Debbie had bad news, “Polley Pitts” was Colonists found themselves among the and my brother sent directions here to dead. Answering her letter on Aug. 22, ranks of mortgage lenders: attach on Grant’s right to some land here, 1772, Franklin asked for clarification; “Enclosed you have a Letter from by virtue of a mortgage given him by one was it true? He added, “I hope not. Pray your Uncle [John Franklin], with a Power Pitt. Nothing effectual could be done in tell me.” By Dec. 1, 1772, Franklin had of Attorney. The Affair requires immediate at that time, there being a prior mortgage confirmation and reminded Debbie, Care, and I write at his Request, to desire undischarged. That prior mortgage is “I suppose you know that we have a you would do what is proper in it before now near expiring, and Grant’s will take Mortgage on her Lotts. Mr. Galloway took you deliver the Letters that come by this place. Pitt’s widow is desirous of being it for me. You do not tell me whether any Post, because otherwise others may be enabled to sell the place, which cannot thing has been done about it; or whether beforehand. The Case is this. be done, without paying off Grant’s any Interest was ever paid. …I wish you “You remember Pitts that married mortgage. Therefore, if your old demand would.” Molly Yeldhall. He was a factor for this against Grant still subsists, you may The settlement of Pitts’s estate Joseph Grant, and fell into his Debt. I empower me in any manner you think dragged on, and on Oct. 14, 1776, forget how much. Grant su’d him, and proper to recover it. when Franklin was making a big effort to he gave Grant a Mortgage on a Piece “Is Grant living? Or, if dead, are settle his affairs before leaving for Paris, of Ground and House in Walnut Street there any of his representatives among he was able to secure final payment, [Philadelphia] that lets for £15 or 20 per you? Inquire. Because here is a person totaling more than ₤502, from Pitts’s annum. It was before mortgag’d to Capt. desirous of purchasing, who, perhaps, representative. The discharge of the Greenway for £100 who was to take may inquire them out, and get a discharge mortgage is among Franklin’s papers at Principal and Interest out of the Rent from them, before your claim is brought the American Philosophical Society. as they arose, so I suppose the £100 is forward, unless the attachment formerly now near if not quite paid in its Turn. The made in your behalf is still good, which I Land was intail’d [entailed] by Molly’s am inclined to think may be. Father, so it can not be held by Virtue “I am going in a few days to of the Mortgage after her Son comes of Virginia, but expect to be back in three Age, but that will not be these 9 or 10 or four weeks. However, send what Years. The Design of this Power is, that you have to say on this subject to my

7 The Papers of Benjamin Franklin: Meet the People

By Kate Mearns Ohno

The project to publish a modern the Early Republic for future volumes comprehensive edition of Franklin’s covering Franklin’s return home. writings and correspondence was first The project’s French specialist is discussed in 1953, and was officially Assistant Editor Adrina Garbooshian, launched jointly by the American who joined the project as a post- Philosophical Society and Yale doctoral fellow in 2007, after receiving University on the great man’s next her doctorate in French from Wayne birthday, January 17, 1954. Thirty-nine State University, and teaching French of a projected forty-seven volumes language there. She brings to the are in print. Many have worked on Franklin project experience as a the Franklin edition since 1954, and graduate assistant on the project to the volumes are still being published publish the correspondence of Caron by Yale University Press. Here’s a de Beaumarchais, the well known snapshot of the current staff. playwright and entrepreneur of the Editor-in-Chief Ellen Cohn has , whose business worked on the edition since 1979, and affairs remained a headache for the she was selected to direct the project American minister for years. In addition in 1999. Her many publications are the to other French documents, Adrina has gold standard of Franklin scholarship. taken on drafting annotation on Franz She is much sought after as a lecturer, Anton Mesmer’s hypnotic method, but she is currently resisting all such which was investigated by a body of appeals and is hard at work finalizing scientists that included Franklin. the manuscript for volume 40. Her Cover of The Papers of Benjamin Franklin The newest member of the team is name has been on the title page since Alysia Cain, editorial and administrative volume 24, and she was hired by assistant extraordinaire. Alysia William B. Willcox, the second editor- impossibly difficult manuscripts, and joined the Franklin team in 2008 after in-chief. dating the undated ones, has made earning a masters degree in Library Kate Ohno, an associate editor, her absolutely invaluable. She heads Science with a specialty in archives has been happily employed on the up proofreading for English language and spending a year in France. In the project since 1990. She is interested texts. She is known for her unflagging Franklin office she has contributed her in all things Franklin, and has taken devotion to accuracy, thorough special expertise in computers, French responsibility for Franklin’s port and research, and clear language. She language, and librarianship. She is commercial correspondence for recent is currently documenting Franklin’s the first person to greet visitors to the volumes. Kate is busy chronicling relationship with his grandson, William Franklin Collection and the one who the financial tribulations of Jonathan Temple Franklin, through the lens of fields phone requests for information Williams, Jr., Franklin’s great nephew, their exchanges during Temple’s 1784 about the great man. Alysia has taken an American merchant in France, who visit to England. Franklin enthusiastically to her heart, was forced into bankruptcy at the Philipp Ziesche came on board learned the intricacies of deciphering close of the Revolution. Readers of the as an assistant editor in 2006, after 18th and 21st-century handwriting (the volumes undoubtedly will want to know receiving his doctorate from Yale in latter of her co-workers), and is a if Franklin helped him out, and how. She history and pursuing post-doctoral willing worker in the field of Franklin is joined by her colleagues in forging work at the International Center for studies. ahead with research for volume 42. Jefferson Studies. Philipp has forged Last, but certainly not least, the Assistant Editor Alicia Anderson ahead on important scientific threads editorial project benefits from the first came to the editorial project as a in Franklin’s correspondence, like continuing wisdom and advice of graduate student intern in 2005. The French experiments in ballooning, and Claude-Anne Lopez, who joined the project’s most important mission is to has headed up the work on Jefferson’s project in its first years and retired from supply accurate texts for the documents collaborations with Franklin. His co- full-time work in 1987, and Jonathan that are published in book form or workers will rely on his broad and Dull, who retired in 2008 after 30 years on line; her passion for deciphering deep knowledge of Philadelphia during on the Franklin edition.

8 Reading Franklin Richard Beeman, Plain, Honest Men: the Making of the American Constitution (Random House) Publishers’ Weekly claims that “this account is now the most authoritative, up-to-date treatment of the Constitutional Convention…it’s unlikely to be surpassed.”

Edmund S. Morgan, American Heroes: Profiles of Men and Women Who Shaped Early America (Norton). Morgan is one of the most distinguished and influential historians of Colonial America, and this book, published in his 93rd year, collects 17 essays written over a 70-year period. It is his 18th original work. In it he claims that Washington and Franklin were the two men most responsible for the creation of the American republic. Both, he says, possessed “a talent that enabled them to accomplish what they did where others might have failed….the talent for getting things done by not doing the obvious, a talent for recognizing when not doing something was better than doing it, even when doing it was what everyone else Friends’ Trip to Albany Plaster bust after Jean-Jacques Caffiéri wanted.” c.1800. Courtesy of American Philosophical Society David Waldstreicher, Slavery’s Constitution (Hill and Wang) traces “slavery from before Join The Friends of Franklin for the revolution, through the Constitution’s an exciting September 30-October “Ben Franklin framing, and into the public debates that 4, 2009 visit to scenic Hudson followed.” By the author of Runaway Valley. We will explore the New York Goes to Wall Street: America: Benjamin Franklin, Slavery, and connections Franklin made and visit Money, Investing, the American Revolution. places such as Clermont, the home of and the Good Life” Robert R. Livingston, who had much Thanks to Friend Charles Hargis, who correspondence with Franklin. We CD Available sent a copy of an article from the Father’s will visit Schuyler Mansion, where $30 plus $5 shipping and handling Day issue (June 20-21) of the Wall Street Franklin visited in 1776 and enjoy a Journal. The piece, by Barbara Dafoe visit to Saratoga Battlefield. From If you missed the 2009 symposium, a Whitehead, one of the co-editors of the historic homes and mansions to the recording of the morning sessions held on recent volume, Franklin’s Thrift: the Lost phenomenal scenery—this area of the Friday, April 17 at The National Constitu- History of American Virtue (Gazette Hudson Valley invites us to an enjoyable tion Center is now available. CD includes readers were alerted to its publication and memorable New York experience. opening remarks by Roy E. Goodman, in the last issue), is entitled “Founding Highlights will also include a specially President; “Ben Franklin’s Three Financial Fathers” and describes the challenges of guided tour to Johnson Hall, lectures Virtues: Industry, Thrift, and Prudence” being the paternal figures in the lives of by community historian, Stefan Bielinski by Blaine McCormick, Ph.D., Baylor Uni- “Revolutionary Kids”. Whitehead tells her who has studied Franklin’s time in versity; “The American Revolution and readers “Founding a nation meant more Albany and Kate Ohno, associate editor Financial Crisis: How Franklin Survived than winning a war. It also called upon the of the Franklin Papers. Kate, who will and Prospered” by Mark Skousen, Ph.D., nation’s Founders to pass on the passion be spending Saturday with us, will help Grantham University; and “Ben Franklin for freedom, educational excellence synthesize our trip with a presentation at on Real Estate Bubbles, Inflation and Cen- and civic virtue to their children and our concluding dinner, “Four Seasons: tral Banking” by Robert E. Wright, Ph.D., grandchildren.” Franklin and Albany”. This promises New York University. The luncheon and af- to be a trip to remember. More specific ternoon panel sessions were not recorded. A forthcoming issue of the online journal program information has been mailed to To order your CD, please email The American [http://www.american.com/] each Friend, but inquiries can also be [email protected] for an will feature Franklin’s London home, now addressed to: Kathy DeLuca, Executive order form or call 856-833-1771 to obtain known as Benjamin Franklin House. Director, at 856-833-1771. Reserve the form. early to guarantee your space.

9 Ongoing: Franklin in the Garden: This summer, if The traveling exhibit, Benjamin Franklin in you visit Bartram’s Garden in Philadelphia, Search of a Better World, may be coming to a be sure to see the late summer flowering location near you. tree that Bartram named for his friend. Bartram collected the first specimen in the Aug. 26-Oct. 9 Laramie County Library System, wild. The last wild Franklinia alatamaha Cheyenne, Wyoming; Urbana University, was seen in 1803; all the current specimens Calendar Swedenborg Memorial Library, Urbana, Ohio. are cultivated.

: John Bett’s new play, of Events Oct. 21-Dec. 4 Yakima Valley Regional Library/ Franklin on stage According to Ben, debuted this spring in Sunnyside, Yakima, Washington; Martinsburg Glasgow. The story portrays the trials of a Public Libraries, Martinsburg, West Virginia. September 9, 2009 down-at-heel actor during the exceptionally Benjamin Franklin House Annual For future locations see: www.benfranklin300. cold winter of 1947, who arrived at the BBC Symposium, 6:30 PM at the , org/traveling_library_exhibit.html. to make a play about Benjamin Franklin. London. Paul Smith, director of Kew The actor encounters mass absenteeism Gardens’ Millennium Seed Bank will speak of the facility’s staff due to fuel shortages in celebration of Kew’s 250th anniversary and power cuts, and copes with an inept and in memory of Franklin’s friendship with producer and a Scots stage master with a Kew founder Joseph Banks. Tickets ₤8/₤5, Franklin Tidbits whistle. include a pass to Kew Gardens. The Seed Franklin in the Digital Medium: In late Bank aims to collect 10% of the world’s March the Franklin Papers office received Secrets of the Founding Fathers is airing on the History Channel. Described on the plant species seed by decade’s end. The a call from Michael Everson. Everson, an organization’s website as an investigation varieties sought include seed from the American currently living in County Mayo, of “the history and symbology so prominent world’s rarest, most threatened, and most Ireland, requested information about unique characters in Franklin’s phonetic in the creation of the United States,” it is useful plants. alphabet so that they could be encoded into said to trace “the intimate connections Unicode, the universal computing standard of the Founders with Freemasonry” and September 14, 2009 specifying the representation of text in all other secret organizations. The History Lady Joan Reid, “Herbs, Horticulture and modern software. Everson, like Franklin, is Channel encourages potential viewers Health: Franklin’s Botanical Pursuits,” keenly interested in the aesthetics of the to “explore the secret (and secretly dark) Benjamin Franklin House, 36 Craven St., printed word, and writes of himself, “My sides of the men responsible for laying the London. Tickets ₤5/₤3.50. Reserve a place by life’s work and my dharma is to ensure that foundation of the United States.” However, emailing [email protected] the Universal Character Set (Unicode and viewer beware, as there have been ISO/IEC 10646) supports all of the writing serious complaints about the accuracy systems of the world. To accomplish this of the show. To read some of them, click October 1-4, 2009 on http://boards.history.com/topic/Other- Friends of Franklin trip to the Hudson and to pay the bills, I seek funding for encoding projects, I design and sell fonts, Programs-On/Secrets-Of-The/520057822. Valley. Contact Kathy DeLuca, and I typeset books, chiefly in Irish.” For 856-833-1771. more information on Everson’s work with Franklin in the imagination: Thanks Unicode, click on http://www.evertype.com to the editors of the Papers of Thomas November 2009 Jefferson who forwarded a cartoon by The Minnesota Historical Society is If you search the World Digital Library Amanda Coppedge and Jesse Reklaw, mounting a small version of the Franklin for Franklin, one of the images displayed from the “Slow Wave” series which was tercentennial exhibit, “Benjamin Franklin in is the American Philosophical Society’s published in the June 25-July 1, 2009, Search of a Better World” and the Bakken publication of Franklin’s map. issue of The Hook. It imagines that time travel is possible and illustrates a visit to Museum in Minneapolis is reviving their http://www.wdl.org Franklin by a twenty-first century woman exhibit on the Franklin and lightning rod. Franklin in the Flesh: Rock star Benji who shows the great man her laptop and Madden of the group Good Charlotte has teaches him to play Spore. Some things, December 3, 2009 a tattoo of Benjamin Franklin on his back. however, never change… Lady Joan Reid, “Franklin the Spy” Benjamin Franklin House, 36 Craven St., London. The New York Historical Society offered a “And I don’t think he was ever bored…” Tickets ₤5/₤3.50. Reserve a place by chance to meet Benjamin Franklin and his For more new graphic representations of emailing [email protected] wife, Franklin (AKA Jack Franklin, click on Maira Kalman’s illustrated and Celeste Sherry), at a celebration of blog, “And the Pursuit of Happiness”. (On January 15, 2010 Independence Day. The Sherrys are high the New York Times site: http://kalman. Celebration! of Benjamin Franklin, school teachers. How does one become blogs.nytimes.com/2009/07/30/can-do/) In her July 30 column, subtitled “Can do,” she Founder. Contact Carol Smith, cwsmith@ a Founding Father? Click on http:// ponders the great man’s legacy. verizon.net for more information or visit: www.hvlifeonline.com/articles/article. www.ushistory.org/celebration. aspx?id=1156 to read Jack’s story.

10 Problem # 10. Cube date if Ben lived longer. Math Puzzlers If Ben Franklin (1706-1790) lived longer, what would have been the earliest cube date Editor’s Note: Here is another Franklin in his life and what would be his age on that date? Note that a cube date in a four-digit themed math puzzle presented by Aziz year is defined as an eight-digit full date number MMDDYYYY (where the first two-digits Inan ([email protected]) and the solution to correspond to the month, the next two to the day, and the last four to the year numbers) the problem posed in the Spring issue of that equals the cube of an integer number. the Gazette. (Source: Inan. Answer: 3241792 or March 24, 1792 at age 86.) Solution: If he lived longer, the first cube date in Ben Franklin’s life would have occurred at age 86 on March 24, 1792 represented by the full date number 3241792 since 3241792 = 1483.)

Problem # 11. Biography book. A biography book about Ben Franklin has x number of pages. If ten less than ten times the sum of the digits of x equals their product and if five timesx equals the square of the birthday number of the author in the year he died, what is the number of pages in this book?

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