Friday 13 December 2013

Crashing The Party -- Jews in Savannah

During our time in Savannah, Fran and I took a guided tour of Mickve Israel Synagogue, on Monterey Square.  Our visit prompted some further exploration of the role of Jews in the founding of the city and the colony. This will probably be more than most of you would ever want to know. Consider, please, that Savannah was founded in the hope of creating a classless society where all men would share the same rights and privileges. The Jews who first came to Savannah and formed only the third Jewish congregation in the colonies were, from the very first, free and equal. The same cannot be said for the Jews of Newport or New York. Unfortunately, by 1752 the Utopian dream in Savannah was over.

James Oglethorpe

When James Oglethorpe, the founding trustee of Georgia, established his settlement at Savannah, he prohibited strong spirits, lawyers, slavery and Catholics. The first encouraged indolence. The second provoked disputatiousness. The third, slavery, was inimical to the very purpose of a colony established to ameliorate poverty and indenture. And the forth, prohibiting Catholics, was intended to avoid the threat of a Catholic alliance with the Spanish in Florida in the likely event of war.

But Mr. Oglethorpe, the seven other trustees, and even King George II's drafters of the Georgia Charter of 1732 forgot to prohibit Jews. Oglethorpe and 113 others landed in what was to become Savannah in November of 1732. On July 7, 1733, in a formal ceremony, Oglethorpe  laid out the first 4 wards of his new "classless" city:
Basic Ward Plan of Savannah
His (Oglethorpes) distinctive pattern of streets, ten-house "tythings," and public squares soon became a reality. Identical clapboard houses built on identical lots, plus restrictions on how much land could be owned and an outright prohibition on slavery, were testimony to the Trustees' desire to produce a classless society—one in which each head of household worked his own land.

Perhaps no one was more surprised than Oglethorpe when, four days after he laid out the plan for his city, on July 11, 1733,  a ship carrying 42 Jews arrived in his fledgling community of 275 Christians. His charter expressly forbid "Papists" but said nothing of non-Christians. Oglethorpe sought the advice of legal authorities in Charleston who told him that since the Jews weren't expressly prohibited they  had to be admitted.

The arrival of the Jews shouldn't have surprised him.  As a Member of Parliament, Oglethorpe became active in the prison reform movement after a friend of his, who was jailed as a debtor, died in London's Fleet Prison. His investigation led to a number of prison reforms but, according to The New Georgia Encyclopedia:

Oglethorpe and several colleagues from the jails committee, notably John Lord Viscount Percival ...... began exploring the possibility of creating a new colony in America. They believed that if given a chance, England's "worthy poor" could be transformed into farmers, merchants, and artisans. But strict rules would be needed to prevent the class divisions that plagued English society. Thus, all the settlers would work their own land, with slavery and large landholdings specifically prohibited.


Fleet Prison


Debtors crammed into a room in Fleet Prison
Oglethorpe and Percival began lobbying the King for a charter for such a colony and, after a two year delay, the King was more than happy to grant the charter.  The numerous "whereas's " at the beginning of the charter make clear why.  England, and especially London, was an explosion waiting to happen. The debtor's prisons were overcrowded. The cities were inundated with newly impoverished farmers and laborers who had been driven off the land by the latest rounds of Enclosure. The nascent Industrial Revolution was unable to absorb even a small part of the desperately poor. George II could kill eight birds with one  Charter.  According to the Official Savannah Tour Guide Manual:

As David Letterman might say, the top three reasons for the Georgia Charter were poverty, poverty and poverty. And numbering among the very poorest were some of London's Jews. According to the official history of Congregation Mickve Israel in Savannah:

In 1732 there were 6,000 Jews living in London. The more affluent and established members of that Jewish community, threatened by the poverty of their coreligionists, provided generous financial support by subscribing to Oglethorpe’s new colony of Georgia, in addition to helping their fellow Jews set sail on the second boat for Georgia. Among the Jews who helped subscribe were members of the  Spanish and Portuguese Bevis Marks Synagogue, the mother congregation to Mickve Israel in Savannah.


Bevis Marks

The Sanctuary of Bevis Marks
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The English were early adopters of the practice of taxing the Jews; borrowing from them until they had no more to lend; then expelling them, especially if they sought repayment. Jews had been in England since Roman times. Jews came from France with William The Conquerer in 1066. By 1290, after almost 200 years of off and on persecution, Edward I formally expelled the Jews. It is estimated there were between 4000 and 16000 Jews in England. Many of them went to Amsterdam. It would be 350 years before Jews would be legally readmitted to England.

In the meantime, Spain, expelled the Sephardim, the Spanish Jews, in 1492. (Sepharad is the Biblical Hebrew word for Spain.) Most of the expelled Jews were Conversos who were suspected of being Marranos, i.e. converts to Christianity who secretly continued to practice Judiasm. These Marranos were considered apostates and were targeted by The Inquisition. It is estimated that some 200,000 Sephardic Jews were expelled from Spain. The Sephardic Jews spread to Turkey, Morocco, France and throughout Western Europe. In 1496, Portugal followed suit and also expelled the Jews.

To make a long (350 year) story shorter, Jews, especially Conversos and Marranos from Spain and Portugal, began to filter back into England under Henry VIII. He used Jewish scholars to justify his divorce from Catherine of Aragon. Most of the musicians in his and Queen Elizabeth's courts were Jews. Rodrigo Lopez, a Portuguese Converso, was physician-and-chief to Queen Elizabeth I  until he was hanged on a trumped up charge of treason. Marlow and Shakespeare both had their plays about Jews. And very recent and extensive research suggests that The Dark Lady of Shakespeare's Sonnets was Emilia Bassano (Lanier), the daughter of a Jewish court musician and instrument maker. One researcher proposes Bassano as the author of Shakespeare's works.

Emelia Bassano

All of the above not withstanding, in 1609 after the death of Elizabeth I, the Portuguese conversos were again expelled from London on the suspicion that they were, in fact, Jews. But the Converso/Marrano community of London continued to grow with most of the members giving the impression of being Spanish Catholics.
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Under Lord Protector Oliver Cromwell's Commonwealth,  the Jews twice petitioned for quasi and then full legal status in England :

As Lord Protector, Cromwell was aware of the contribution the Jewish community made to the economic success of Holland, now England's leading commercial rival. It was this—allied to Cromwell's tolerance of the right to private worship of those who fell outside evangelical Puritanism—that led to his encouraging Jews to return to England in 1657, over 350 years after their banishment by Edward I, in the hope that they would help speed up the recovery of the country after the disruption of the Civil Wars. There was a longer-term motive for Cromwell's decision to allow the Jews to return to England, and that was the hope that they would convert to Christianity and therefore hasten the Second Coming of Jesus Christ, ultimately based on Matthew 23:37–39 and Romans 11.


In 1655 Manasseh ben Israel, an Amsterdam Rabbi and printer who had pamphleteered for Jewish readmission to England, came to London to petition Cromwell. Many of London's Sephardic Jewish community signed the petition thereby revealing their names and themselves as Jews. The Spanish Jews came out of the closet.  The petitions to Cromwell failed and London's Jews were dangerously exposed. The outbreak of war with Spain in 1655 and a legal case arising from it opened the door  to England again for the Jews.

One Jewish merchant, Antonio Rodrigues Robles, had the cargoes of two ships confiscated ostensibly because he was Spanish. (An early 'enemy alien'). He claimed, at first,  to be Portuguese, not Spanish. Then, during hearings before a Commission appointed by Cromwell, Robles and his fellow Marranos established the facts of their true identities as Jews and members of the Hebrew Nation.   Robles won his case before The Commission and his property was restored.

It was definitely England through the back door and without most of the rights and privileges of full citizenship. London's Jewish community received royal written protection from Charles II in 1664, '74 and '85. In 1698, Parliament recognized the legality of practicing Judaism in England. And, in 1701, Bevis Marks was built - in an alley.  Jews were not allowed to build on public thoroughfares.
Bevis Marks --built down an alley

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Soon after Oglethorpe and Percival petitioned in 1732 for a charter to establish a colony in Georgia, potential investors began lining up for appointment as commissioners to raise funds for the new colony. The congregation Bevis Marks chose three members to seek appointment as commissioners. "From the outset, the three Jewish Commissioners had as their one aim the lifting of some of these poor Jews from the relief rolls of London Jewry."

The commissioners' initial request to send Jews to Georgia was denied by the Trustees, but in January of 1733 the commissioners did receive approval and they moved quickly.  They hired a captain, a ship, the William and Sarah, and selected 42 Jews, who departed London in January 1733. All but eight of the 42 were Spanish/Portuguese Jews.  Only the Sheftalls and Minis' were Ashkenazic Jews from Germany.


Model of the William and Sarah
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Mickve Israel Synagogue on Monterey Square, Savannah
Synagogue architects were in short supply in 19th Century Savannah

As the divinity, luck, or the mosquitos would have it, the Jews landed in Savannah in the midst of a yellow fever epidemic that had already claimed 20 lives in the small community, including the colony's doctor.  Numbering among the Jews was an physician, Samuel Nunes Rubiero.  He ministered to the sick and was credited by Oglethorpe with saving a number of lives.

When the Jews landed in July, Oglethorpe sent notice of their arrival back to the Trustees in London. The Trustees responded by return post:

The Trustees have heard with concern of the arrival of Forty Jews with a design to settle in Georgia. They hope they will meet with no sort of encouragement or desire. Sir, you will use your best endeavors that the said Jews may be allowed no kind of settlement with any of the grantees. the Trustees being apprehensive they will be of prejudice to the Trade and Welfare of the colony.

The Trustees' letter crossed a letter from Oglethorpe reporting on the yellow fever outbreak and Dr. Nunes' success in putting an end to the epidemic. The Trustees we appreciative but:

The Trustees are very much pleased with the the behavior of the Jewish Physician and the Service he has been to the Sick. As they (the Trustees) have no doubt you have given him some gratuity for it
they hope you have taken any other Method of rewarding him than of granting of Lands

Too late. Again letters crossed at sea. According to The New Georgia Encyclopedia:

Oglethorpe cited his gratitude to the doctor among his reasons for assigning plots of land to fourteen Jews.  Among other reasons mentioned by scholars is the fact that another one of the Jews, Abraham de Lyon, had experience in viticulture, which would be useful to the colonists in their efforts to produce wine.

A further irony in all of this is that, what with the expulsions, inquisitions, conversions, etc., etc., even Jews did not know that they were Jews. Some of the original  English Trustees of the Savannah Colony may have descended from Jews. When Oglethorpe was recruiting prospective colonists, he selected for skills: the silk weaver he chose was an Italian Converso. In fact:

As the Trustees began interviewing potential colonists, they looked for carpenters, tailors, bakers, farmers, merchants, and others with the skills necessary for the colony's success. By this time any ideas of Georgia's being a haven for debtors in English prisons had long vanished—and not one formerly jailed debtor was among the first colonists selected.


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The Savannah Jews had brought with them  a Torah  made of deerskin parchment, with two Torah covers and a circumcision box, which was donated by a London merchant. At least 14 men had been granted land and all were considered naturalized citizens of the colony. The Jews were ready to found a synagogue, the third synagogue after Newport RI and New York City.  And, the Jews of Savannah were the only Jews in the colonies who lived, worked and prayed under the same conditions as all other  members of the community.

The Torah that came with the first Jews
The Circumcision Kit
Arc of Mickve Israel with the Torahs
The one on the left is a Holocaust Torah
As has so often been the case, the unity of the Jewish Community was short-lived. The Sephardic Jews, after centuries of surreptitiously worshiping in dangerous circumstances, were not so attentive to the letter of The Law.  In a letter back to Germany a Reverend Bolzius wrote:

Even the Jews, of whom several families are here already, enjoy all privileges the same as other colonists. Some call themselves Spanish and Portuguese, others call themselves German Jews. The latter speak High German and differ from the former in their religious services and to some extent in other matters as well, as the former do not seem to take it so particular in regard to the dietary laws and other Jewish ceremonies. They have no Synagogue, which is their own fault; the one element hindering the other in this regard. The German Jews believe themselves entitled to build a Synagogue and are willing to allow the Spanish Jews to use it with them in common, the latter, however, reject any such arrangement and demand the preference for themselves.

The conflicts resolved themselves to some extent with the outbreak of another war with Spain in 1741; The War of Jenkin's Ear. With Spanish forces attacking from Florida the Sephardic Jews of Savannah debarked for points North. They feared that, if the Spanish should take Savannah, they would face the rack and the auto da fe as apostates under The Inquisition. The Ashkenazic Minis and Sheftall families remained in Savannah, where they are represented to this day.

According to the official history of Mickve Israel:

On March 1, 1876, the cornerstone was laid for the present building, and the Monterey Square sanctuary was consecrated on April 11, 1878. This magnificent synagogue, designed by the nationally known New York architect Henry G. Harrison, was built in a pure neo-Gothic style, which reflects the fashionable architecture of the Victorian era. On the very same square, not more than 60 feet away stood a neo-Gothic Presbyterian church until it was destroyed by fire in 1929. 


Views of Mickve Israel





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BTW, if you're Jewish, you will be happy to know that The Alhambra Decree of 1492 expelling the Jews from Spain was formally rescinded on December 16, 1968 thereby ending the Spanish Inquisition. So, y'all come back, now.

The Vatican ran the Inquisition through the "Congregation of the Holy Office of the Inquisition"  which, in 1908, became the  "Sacred Congregation of the Holy Office" which, in 1965, became the "Congregation for the Doctrine of the Faith" from whence the last Pope, Benedict, ascended to the Papacy. 


Tuesday 3 December 2013

Following The Money


Well, it's the end of the month. And you know what that means. Wells Fargo sends our statement and we get to be Capitalist Pigs For A Day.  Last May 21 we sold our nest and all of the eggs. After settlement, while we waited in the lobby of the title company, two checks were cut and wired to a Financial Planner on Riva Road.
You just can't beat it.



Ask him


He had been recommended to us by some friends so we set up an appointment. When we told him we weren't looking to get rich, 3-5% return would do us nicely, he chuckled and said we were looking for the same Holy Grail that everyone else was looking for. We settled on a managed mix of conservative stocks with some upside potential and a long-established record of paying dividends. (Toward the end of the month I begin to sound like CNBC).

I toyed for a few minutes with putting some money in the Seven Deadly Sins fund.

Bruegel's Seven Deadly Sins
This is a group of motif stock funds wherein you can put your money and your cynicism to work. You are betting that, in good times and bad, people will continue to indulge in gluttony, sloth. greed, wrath, vanity, envy and lust. Check out the link. The logic is sound. Oh, and the fund is up 35.2% for the year out-pacing the S&P 500. But, alas, we didn't invest. Fortunately, some of the Seven Deadly Sins stocks just happened to show up in our very conservative, clock-work dividend paying portfolio. Sin is universally recognized good business. That's especially true down here in The South where, "If you got a Bible, you got a business."

 All in all, after six months we are pleased with our returns, though "past performance in not indicative of future returns" and everything is on paper. We haven't taken any gains and we reinvest all the dividends.

Now, I like to believe that I am not naieve about Capitalism. I learned the theory from Arthur Jensen and the practice from Marine Corps General  Smedley Butler.
Ned Beatty as Arthur Jensen

Smedley Butler

I spent 33 years and four months in active military service and during that period I spent most of my time as a high class muscle man for Big Business, for Wall Street and the bankers. In short, I was a racketeer, a gangster for capitalism. I helped make Mexico and especially Tampico safe for American oil interests in 1914. I helped make Haiti and Cuba a decent place for the National City Bank boys to collect revenues in. I helped in the raping of half a dozen Central American republics for the benefit of Wall Street. I helped purify Nicaragua for the International Banking House of Brown Brothers in 1902-1912. I brought light to the Dominican Republic for the American sugar interests in 1916. I helped make Honduras right for the American fruit companies in 1903. In China in 1927 I helped see to it that Standard Oil went on its way unmolested. Looking back on it, I might have given Al Capone a few hints. The best he could do was to operate his racket in three districts. I operated on three continents.


What I find interesting in all this is how my worldview becomes bifurcated as we approach the end of the month. What I find appalling, reprehensible, even criminal on the 29th suddenly seems very understandable on the 30th. For instance: yesterday Fran and I discussed  several stories in the news recently spotlighting Walmart's decision  to buy back some $15 billion worth of their own stock over the past two years. If, instead of buying back their stock, the Walmart board had wanted to, they could have given every frontline employee a raise of almost $7.00 an hour to an average wage of just under $15 an hour. And Walmart could have done this without raising their retail prices even a penny.  We are talking about 2.2 million employees. If Walmart were a country, it would be the 19th largest economy in the world. Of every US dollar spent, 8 cents is spent at Walmart.

Yet all of us subsidize Walmart by providing food stamps and Medicaid to many of their employees who work all the hours they can get and still don't make enough to take care of their families.   States and local communities subsidize Walmart.

A secret behind Wal-Mart’s rapid expansion in the United States has been its extensive use of public money. This includes more than $1.2 billion in tax breaks, free land, infrastructure assistance, low-cost financing and outright grants from state and local governments around the country.

The Bangladeshi factory that burned down and the one that collapsed causing more than 1300 deaths were both Walmart suppliers. Faded Glory jeans, a Walmart brand, were found in the debris.  Walmart pleaded ignorance to the safety conditions in those factories and maintained that they were unaware those  factories produced for Walmart under subcontract.

Mass funeral for the Bangladesh factory fire victims.
Collapsed Bangladesh garment factory
American Retailers Refuse To Contribute To Compensation Funds For Bangladeshi Workers | ThinkProgress

Even if you discount the most sensational stories, Walmart represents 21st Century American Capitalism at its....... most capitalistic.

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On the other hand, there are about 3.25 billion shares of Walmart stock out there. Almost half belongs to the Walton family. The rest of the shares are owned by 10's of millions of people either through individual ownership or through investment, pension or retirement plans like Calpers, the California public employees retirement system.  As of yesterday, Fran and I own 27 shares of Walmart.
Hugh Jackman at the 2013 Walmart Annual Meeting. Fran: I'm so sad about this.
Hugh Jackman and Tom Cruise at the Walmart Annual Meeting
Digression: As shareholders, we could have gone to the Walmart Annual meeting this past June in the Bud Walton Arena at the University of Arkansas in Fayetteville. We and 14000 others would have been entertained by Hugh Jackman. We would have listened intently as Tom Cruise extolled the virtues of Walmart as a friend and ally of women engaged in the struggle for economic equality  around the world. Musicians Jennifer Hudson, Kelly Clarkson and John Legend performed some of their hit songs. Lest for even a moment I worried that my profits were being frivolously squandered,  a Walmart spokesperson emphatically states:

We do not pay performance fees for celebrity guests..... The company does cover hotel and travel expenses, but otherwise pays celebrities only in exposure for their latest projects....
Every entertainer that is here has something to do with our business... There’s some connection from the business, whether it’s CDs, books, or t-shirts.” Film studios and record labels “really work with us” to recruit the talent.

In 2012 Justin Timberlake hosted and in 2011 it was Will Smith. In previous years Taylor Swift, Celine Dion,  and Arrowsmith have entertained.  The benefits of owning Walmart extend beyond the obvious. (End Digression.)

The obvious benefits are dividends and stock appreciation. This year (half year in our case) our share of Walmart's profit is $1.88 a share. Last year it was $1.59 a share. Walmart has paid a dividend every quarter since 1974. And that dividend has increased every year since 1974.  Ask Andrew Carnegie; dividends are a big deal:

“This was my first investment. In those good old days, monthly dividends were more plentiful than now and Adams Express paid a monthly dividend. One morning a white envelope was laying upon my desk, addressed in a big John Hancock hand to ‘Andrew Carnegie, Esquire’. At one corner was a round stamp of the Adams Express Company. I opened the envelope. All it contained was a check for ten dollars upon the Gold Exchange Bank of New York. I shall remember that check as long as I live…it gave me the first penny of revenue from capital – something that I had not worked for with the sweat of my brow. ‘Eureka!’ I cried. ‘Here’s the goose that lays the golden eggs.’

And if you bought 100 shares of Walmart in 1970 at $16.50 a share, you would now own 204,000 shares at $81.01 as of 11/29/13 due to stock splits and dividend re-investment. (Who had $1650 in 1970?) That's a lot of  golden eggs.

The thing is, Walmart never promised anyone a rose garden. They never promised a garden at all. Their Mission Statement is:

                                  Saving people money so they can live better

That certainly is simple enough. In fact, Strategic Management Insight, a consulting company that helps   companies develop their mission statements, gives Walmart only a 1.2 out of a possible 4.5 score for the Mission Statement. Strategic Management thinks it sucks.


If, like us, you were about to get a dividend check you might call Walmart's mission statement focused. Compare Walmart's minimalist Mission Statement to Home Depot's :

3.What is The Home Depot's mission statement?

The Home Depot is in the home improvement business and our goal is to provide the highest level of service, the broadest selection of products and the most competitive prices. We are a values-driven company and our eight core values include the following:

  • Excellent customer service
  • Taking care of our people
  • Giving back
  • Doing the "right" thing
  • Creating shareholder value
  • Respect for all people
  • Entrepreneurial spirit
  • Building strong relationships


If Walmart set the bar low, there is no place to go but up. HD, on the other hand set the bar unrealistically high for the long term.

Back in the day, when The Home Depot was still run by the founders, Bernie Marcus and Arthur Blank, when you went into your final job interview with the store manager you were asked how much money you wanted. They either gave it to you and hired you or they didn't give it to you because they didn't hire you. There was no negotiating. Employer and employee agreed on the employee's value as the beginning basis of a relationship. This definitely reflected the values of Taking Care of Our People and Doing The Right Thing. But when shareholders, like us,  find their interests competing with seven other touchy-feely core values they often take their capital gains and run.

When the good times stopped rolling and Bernie and Arthur retired in the early 2000s, the new CEO, Robert Nardelli, found a huge company with almost 2000 stores that didn't even have company-wide email not to mention other basic cost control systems. Shareholder value was eroding and the stock price reflected this. His struggle to pull HD into the 21st Century and reverse the decline in shareholder value was daunting. Nardelli resigned in 2007 with a $210 million severance. Nardelli moved on to take Chrysler into bankruptcy and to collect another huge severance package. Home Depot was left a demoralized shell. Most of the experienced, fairly paid longtime employees and managers who bled Orange were gone.

Walmart, in the 2011 Annual Report made no bones about where they were headed and how they  were going to get there.


At Walmart you only have to keep your eye on three things

And this brings up back full-circle to that stock repurchase plan. Under "Returns":

One of our priorities is returning value to shareholders through dividends and share repurchases.


Over-simplifying, fewer shares means the profit pie can be cut into fewer pieces so each share gets a larger piece. Assuming that there were no better investment opportunities for Walmart and those $15 billion, "THE MARKET" just might see Walmart shares as relatively more valuable. The stock price goes up. Yea! The dividend goes up. Yea again!

And about those Walmart employees and those firetrap factories in Bangladesh? Its a new month. I can afford to be indignant again.