December 5, 2008
HARD OR SOFT LANDING?
The big-three auto makers crept to Washington, D.C. again last week – this time in their politically-correct environment-friendly hybrid gas-electric model cars (no more private jet planes) -- to beg Congress for some bail-out cash with which to survive a looming recession.
Will it be a soft or hard landing, or a head-on crash? Whatever. The initial tally to soften the blow is $40 billion of taxpayer money.
As the late Illinois Senator Everett Dirksen used to declare: “A billion here, a billion there, and pretty soon it adds up to real money.”
General Motors says it must have $18 billion in government funding -- $4 billion this month quickly – to restructure its operation.
Ford still has a little cash on hand but says it will need $13 billion “soon."
Chrysler says to survive it must have $9 billion right now -- more later -- unless it merges with General Motors. The latter is less than interested because of its own financial problems.
JOBS AT STAKE
At stake in the big-three contretemps are the jobs of 150,000 union workers.
Congress is offended. The $700 billion it shoveled into the banking and insurance industries last month – to rescue them from the folly of Congress’ Fanny Mae and Freddy Mac institutions promoting home loans to ”poor people” – is nearly gone.
Now, the Big Three automobile manufacturers want a piece of the pie.
President Bush urges relief for the companies. “I am concerned about the viability of the automobile companies as well as those who work for them and their families.”
Mr. Bush urged Congress and the companies to work together to use part of the government loan program for financial institutions -- “so long as the companies make hard choices on all aspects of their business to prove they can not only survive, but thrive.”
Under this proposal, companies that accepted federal help would face limits on executive compensation and dividends to shareholders.
The three company presidents promptly agreed to $1 dollar per year until the crisis is absolved. Without shareholder dividends, stock value of the affected stocks plummeted.
DAVY CROCKETT’S GREAT SPEECH
We are reminded of a famous speech delivered by Congressman Davy Crockett in l834:
Davy Crockett's Vote
Davy Crockett is known in song as "king of the wild frontier" and in history as a three-time congressman from Tennessee who died a hero in the 1836 Battle of Alamo.
His views on the U.S. Constitution are next after those of James Madison and other writers of the Federalist Papers. Crockett's "Message to Congress" in 1834 was little noted at the time. However, it was immortalized in "The Life Of Colonel David Crockett" compiled by Edward S. Ellis and first published in l884.
The account was told to Ellis by a congressman who had served with Crockett. Representatives were asked to vote on an appropriation for the benefit of a widow of a distinguished naval officer. It seemed that everybody favored it.
The Speaker was about to put the question when Crockett arose. Everybody expected he was going to support the measure. He commenced:
"Mr. Speaker, I have as much respect for the memory of the deceased, and as much sympathy for sufferings of the living, if suffering there be, as any man in this House. But we must not permit our respect for the dead, or our sympathy for a part of the living, to lead us into an act of injustice to the balance of the living.
"I will not go into an argument to prove that Congress has no power under the Constitution to appropriate this money as an act of charity. Every member upon this floor knows it. We have the right, as individuals, to give away as much of our own money as we please in charity. But as members of Congress we have no right so to appropriate a dollar of the public money.
"I am the poorest man on this floor. I cannot vote for this bill, but I will give one week's pay to the object. If every member of Congress will do the same, it will amount to more than the bill asks."
He took his seat. Nobody replied. The bill was put upon its passage. Instead of passing unanimously, as expected, it received but few votes.
The congressman recounting the story desired passage of the bill. He went to Crockett's room the next morning and demanded to know why he made the speech that defeated the appropriation.
Crockett's Mistake
Said Crockett:
"Several years ago I was one evening standing of the steps of the Capitol with some other members of Congress. Our attention was attracted by a great light over in Georgetown. It evidently was a large fire.
"We jumped into a hack and drove over as fast as we could. When we got there, I went to work. I never worked as hard in my life as I did there for several hours. However, in spite of all that could be done, many houses were burned. Many families made houseless. Some of them had lost all but the clothes they had on.
"I felt something ought to be done for them.
"The next morning, a bill was introduced appropriating $20,000 for their relief. We put aside all other business and rushed it through as soon as it could be done.
"There were a few members who did not think we had the right to indulge our sympathy, or excite our charity, at the expense of anybody but ourselves. Nevertheless, my yea appeared on the journal in favor of the bill.
"The next summer, when it began to be time to think about election, I concluded I would take a scout around among the boys of my district.
"When riding one day in a part of my district in which I was more of a stranger than any other, I saw a man plowing a field and coming toward the road. As he came up, I spoke to the man. He replied politely but, as I thought, rather coldly.
" I said, 'Friend, I am one of those unfortunate beings called candidates, and ... .'
"He interrupted, 'Yes, I know you. You are Colonel Crockett. I voted for you the last time you were elected. I suppose you are out electioneering now, but you had better not waste your time or mine. I shall not vote for you again.'
"This was a sockdolager! I begged him to tell me what was the matter.
" He replied, 'You gave a vote last winter which shows that either you have not capacity to understand the Constitution, or that you are wanting the honesty and firmness to be guided by it. In either case, you are not the man to represent me.
"He continued, 'Last winter you voted for a bill to appropriate $20,000 to some sufferers by a fire in Georgetown. Where do you find in the Constitution any authority to give away the public money in charity?"
Constitution Reconsidered
"Here was another sockdolager. I could not remember a thing in the Constitution that authorized it.
"Well, my friend, I may as well own up. You have got me there. But certainly nobody will complain that a great and rich country like ours should give the insignificant sum of $20,000 to relieve women and children - particularly with a full and overflowing Treasury. I am sure, if you had been there, you would have done just as I did.
"My friend explained, 'It is not the amount, Colonel, that I complain of. It is the principle. In the first place, the government ought to have in the Treasury no more than enough for its legitimate purposes. But that has nothing to do with the question.
"'The power of collecting and disbursing money at pleasure is the most dangerous power that can be entrusted to man - particularly under our system of collecting revenue by a tariff which reaches every man in the country, no matter how poor he may be. The poorer he is, the more he pays in proportion to his means.
"'What is worse, it presses upon him without his knowledge where the weight centers. There is not a man in the United States who can ever guess how much he pays to the government.
"'So, you see, while you are contributing to relieve one, you are drawing it from thousands who are even worse off that he. If you have the right to give to one, you have the right to give to all. Since the Constitution neither defines charity, nor stipulates the amount, you are at liberty to give to any and everything which you believe is a charity - and in any amount you think proper.
"'You will very easily perceive what a wide door this would open for fraud and corruption and favoritism. When Congress once begins to stretch its power beyond the limits of the Constitution, there is no limit to it and no security for the people."
Crockett Convinced
"I tell you, I felt streaked. I could not answer him. The fact is, I was so fully convinced that he was right, I did not want to. I said to him: 'Well, my friend, you hit the nail upon the head when you said I had not sense enough to understand the Constitution. Yet, I intended to be guided by it.
"'If I had ever taken the view of it that you have, I would have put my head into the fire before I would have given that vote. If you will forgive me and vote for me again, if I ever vote for another unconstitutional law I wish I may be shot."
"The farmer laughingly replied: 'Yes, colonel, you have sworn to that once before; but I will trust you again upon one condition. You say you are convinced that your vote was wrong. Your acknowledgement of it will do more good than defeating you for it.
"'If, as you go around the district, you will tell people about this vote, and that you are satisfied it was wrong, I not only will vote for you but will do what I can to keep down opposition. Perhaps I may exert some little influence in that way.'
"That man was Horatio Bunce. We shook hands and parted in gentlemanly friendship and amity. It was one of the luckiest hits of my life that I met Mr. Bunce. He was widely known for his remarkable intelligence and incorruptible integrity.
"He said, 'Come to my house on Friday week; and we will go together the next day to a barbecue for you. I promise you a very respectable crowd to see and hear you.'
"To my surprise I found a thousand men there. I told them about the fire and my vote for the appropriation. Then I told them why I was satisfied it was wrong. There went up from the crowd such a shout for Davy Crockett as his name never called forth before.
"Now, sir," concluded Crockett, "you know why I made that speech yesterday."
By Lindsey Wilger Williams, retired newspaper publisher and syndicated columnist
