"Money is the Sinews of War: George Washington, Money, and the Revolutionary War," Ed Lengel
Known as “First in
war, first in peace and first in the hearts of his countrymen”, George
Washington was also a very savvy businessman and one of America’s first great
entrepreneurs.
“These are some
aspects of his life and career that are not well known,” said historian Edward
G. Lengel at the January 18, 2017 meeting of the American Revolution Round
Table of Richmond. “I got to thinking about Washington’s relationship with
money and with business, and it opened up his thoughts and tactics as a military
and a political leader.”
Lengel is the chief
historian for the White House Historical Association and a former professor at
the University of Virginia, where he also served as the director of the
Washington Papers documentary editing project. He is also the author of the
recently published book entitled First Entrepreneur: How George Washington Built
His and the Nation’s Prosperity.
According to
Lengel, the Washington Family had a knack for successful business practices
from its earliest days in North America. John Washington, George’s
great-grandfather, came to Virginia in 1656 for what he thought was a routine
business trip.
“John Washington
traveled to Virginia for the purpose of loading tobacco and going back to
England, but a storm sank his ship in the Potomac River and he lost all of his
cargo,” said Lengel. “He decided to stay and to settle down. He grew tobacco,
got married and invested in land before dying at age 46”.
Lawrence
Washington, John’s oldest son, inherited the bulk of his father’s estate. He
died at age 38.
Augustine
Washington, Lawrence’s younger son and George’s father, was a talented
businessman who greatly expanded his agricultural landholdings and also
invested in ironworks. His second wife and George’s mother was Mary Ball
Washington.
“She often gets a
bum rap by historians for being cranky and not very smart, based mainly on
disagreements which she and George had later in life,” said Lengel. “However
she and her husband shared the same vision. She prepared George for real life
by teaching him about math, geometry, accounting and debt. George Washington
always hated debt.”
Mary Ball
Washington was also a good business manager according to Lengel. She managed
the household staff and slaves on a daily basis, and ran her husband’s
businesses whenever he traveled to England.
George Washington’s
first job as a teenager was working as a surveyor. According to Lengel, it was
an ideal job because he worked with prominent people such as Lord Thomas
Fairfax, one of the richest people in the American Colonies.
“Not only did the
Fairfax Family open all sorts of social contacts for Washington, but he gained
considerable experience with land and how to reach down and look at dirt. Is it
good soil or bad soil? He also learned how investing in good land could make
people very prosperous,” said Lengel.
During the French
& Indian War, Washington became a combat veteran---which affected his
understanding of life according to Lengel.
“At the Battle of
the Monongahela he leads the remaining troops in Braddock’s army off the field
and past the cries of the severely wounded,” said Lengel. “It impacts him on
what war does to people, to communities and to a nation. It teaches him the importance
of making sure that troops get paid, get fed and get good care in general.”
On January 6, 1759
Washington married Martha Dandridge Custis, the wealthiest widow in Virginia.
“It’s preposterous
to say that Washington married her simply for her money,” said Lengel. “Their
marriage was a partnership. She chose him as much as he chose her.”
George and Martha
Washington settled into their Mount Vernon home where he made a business
decision that would have a major impact on the rest of his life. He switched
from growing mainly tobacco to growing wheat.
Under the
British/Colonial system of trade, tobacco farmers got paid by British merchants
in the form of credits toward the purchase of British goods. They did not
receive hard currency for their tobacco sales, which often increased Colonial
debt. Wheat was not subject to these trade regulations. Farmers could sell
their wheat by themselves domestically or sell overseas via British and/or
American merchants. Wheat was also easier on the soil and much less
labor-intensive, which allowed Washington’s surplus staff and slaves to make
the transition into new jobs requiring higher skills than tobacco farming.
As tensions
increased between the American Colonies and Great Britain, Washington strongly
supported economic protest measures such as a boycott of British goods in order
to free America from the British/Colonial debt and credit system. For
Washington, independence from Great Britain was primarily about economic
freedom rather than political freedom. He viewed economic freedom as a means to
allow Americans to strive toward long-term prosperity, both in terms of
agriculture and industry.
During the American
Revolution, Washington favored a strong continental army over the use of
militia units. But why? According to Lengel, Washington understood what war
meant as a result of his own experiences during the French & Indian War.
“Civilians are full
of words and fine phrases about the will to win, and about fighting for homes
and families,” said Lengel. “Washington looked at war from the standpoint of a
veteran. He knew that money was the sinews of war, and how war can divide
people. War creates hardships and suffering, and therefore it requires
innovation, production, organization and a strong government to keep people
united.”
According to
Lengel, Washington realized that people who felt committed to the American
Cause might one day give up the Cause if their families were starving. In fact
Lengel said this situation came close several times during the war.
Washington tried to
keep American civilians on the side of his army by punishing any soldiers who
plundered them, and by purchasing goods from civilians at local markets rather
than seizing their goods. Washington also deferred to civilian authority via
the Continental Congress and did his best to keep the legislature informed on
his army’s operations. He understood the importance of keeping civilians on his
side as an extension of the war effort.
After the war
Washington saw the weakness in the Articles of Confederation and the danger in
the virtual elimination of a national army and navy. He also recognized the
importance of innovation during the Industrial Revolution and how it helped the
world. Since the British were generally regarded as the world’s leading
innovators during this time period, Washington recognized the need for America
to emulate them.
“When Washington
became president, he said his first and only aim was to establish the national
prosperity,” said Lengel. “He wasn’t a Hamilton puppet. Washington had an
economic strategy to establish national credit, a stable currency and a level
playing field to protect commerce.”
Part of
Washington’s economic strategy was maintaining peace with other countries.
Despite cries from prominent Americans for war with Great Britain over the
issue of the impressment of American sailors, Washington’s administration
negotiated the Jay Treaty in 1795 which reduced tensions between the two
countries and led to increased trade between them.
“Washington had
wisdom and a deep understanding of America---and what we could become,”
summarized Lengel.
Edward G. Lengel
has authored several books, primarily on the American Revolution and World War
I time periods. His works include the following:
1. General George
Washington: A Military Life
2. Inventing
George Washington: America’s Founder in Myth and Memory
3. Thunder and
Flames: Americans in the Crucible of Combat, 1917-1918
4. The New
Nation: The Creation of the United States in Paintings and Eyewitness Accounts
(co-author)
5. To Conquer
Hell: The Meuse-Argonne, 1918
6. The Irish
through British Eyes: Perceptions of Ireland in the Famine Era
Prior to the
speaker’s presentation the American Revolution Round Table of Richmond
discussed the following topics:
1. Treasurer Art
Ritter reported that the ARRT-Richmond treasury did very well in 2016 and is
growing, thanks to a record-number of members and good participation by members
and guests during the ARRT raffles held at each meeting.
2. President Bill
Welsch noted that the Book Award Committee and the Preservation Committee are
looking for suggestions as to any books which the Book Award Committee should
consider for the 2017 award, and for any organizations which the Preservation
Committee should consider as the 2017 preservation partner. Suggestions can be
submitted to Book Award Chairman Mark Lender, Preservation Chairman Bert
Dunkerly or President Welsch.
3. Several other
announcements were made by members and guests regarding upcoming classes,
conferences and events that relate to the American Revolution. Please read
about these activities elsewhere on the ARRT-Richmond website.
