Capital Quotes
Stamp was a banker and the 2nd richest man in England at the time. Yet he warned about aspects of banking that needed reform and regulation.
The “Caliphate” is the Islamic concept of a single leader of all Muslims in the world who has both Religious and Political power at the same time. After the death of the Prophet Mohammed, there were a succession of Caliphs and Baghdad was considered the seat of the Caliphate for much of that time. For fanatic Muslims who want to bring back the Caliphate, Baghdad has an importance that is almost on a par with Mecca and Jerusalem. The George W, Bush administration did not recognize the importance of Baghdad and Iraq to non-Iraqi Muslims and the importance of driving infidels (Christians) our of their “seat of government,” This was one of the motivations that brought so many “foreign fighters” into Iraq who would not stop at anything in order to get the infidels out.
Stimson was one of the first to realize the new economic reality in America. In prior years, wealthy individuals financed most business and industrial efforts. However, the need for capital had become so great that wealthy individuals could no longer provide sufficient capital to underwrite some of the business efforts. The age of the corporation was dawning on America and Stimson was one of the first to recognize it.
His answer was what Max Weber called “The Protestant Work Ethic.”
This quotation is historically important because it documents the radical change in agriculture that technology brought on. In this period it was steam power. There were steam powered tractors in addition to what he enumerated. The production cost and hence the prices of agricultural products became much lower increasing the standard of living for all consumers. However, the small farmer, without capitol and the scale of a large enough farm, was put in a position in that he could not compete with the major products of agriculture without huge investment in capital equipment and large enough farms. While many went out of business, many others shifted to specialized crops and raising animals where the automation was not as necessary. This process has been on going in American agriculture since the invention of mechanized farm implements, and the small farmer has gradually become more rare. But the process has been ongoing throughout American history.
This is one of the major reasons that Slavery was so hard to end in the South. At the time, the dollar value of the Southern slaves was greater than the value of all the land, factories, inventory, and capital equipment of the South. Slaves were not only capital, they were the largest component of Southern capital and Southern wealth. There were numerous ideas of paying slave owners for the freedom of their slaves, and if this was done, it would have been far less expensive in money alone than the Civil War cost. However, the Southern leadership, like Fitzhugh, were totally intransient with culture and customs—indeed the Southern concept of manhood—was dependent in Slavery. The result was that no compensation was paid to slave owners and the South was impoverished as a result of its capital loss and it would not recover for 150 years.
