Thursday, August 26, 1909. A hostel idea.

The youth hostel movement was born when a group of hikers lead by Richard Schirrmann found shelter in a school in a thunderstorm.

Schirrmann was a teacher as well as an outdoorsman.  During World War One he served in the German Army, participating the 1915 Christmas truce, something that lingered in his area for quite some time after Christmas.  He founded the Youth Hostel Association in 1919 and founded the children's village "Staumühle" on a former military training ground near Paderborn, where my German ancestors hail from.  HE served as the President of the International Youth Hostelling Associating until the Nazis forced him to resign and put the control of the hostels under the Hitler Youth in 1936.  He rebuilt the association after the war.  He married late, in 1942, but had six children with his wife before dying in 1961 at age 87.

The SS Cartago telegraphed a report of a hurricane near the Yucatan, the first radio warning of a tropical storm.

Last edition:

Monday, August 23, 1909. Bill Bergen sets a record.

Labels: 1900s, 1909, 1940s, 1943, baseball, Sports

Thursday, March 12, 1924 Exile in Florida.

Adolfo de la Huerta went into exile to Florida, following his initial flight to Los Angeles after the collapse of his revolution in Mexico.  He's soon return to Los Angeles.

The World Court of the League of Nations issued its decision in the border dispute between Poland and Czechoslovakia within the Orava Territory. Czechoslovakia was allowed to retain Javorina and Ždiar in return for ceding Nižná Lipnica to Poland. Poland ceded territory around Sucha Góra and Glodōvka became Suchá Hora and Hladovka in what is now Slovakia.  The dispute had led to conflict in 1919.

Last prior:

Monday, March 10, 1924. Denby resigns.

Wednesday January 31, 1924. Teapot Dome drama continues, Shoeless Joe testifies.

More drama over Teapot Dome.  The U.S. Senate declared that eases to the Mammoth Oil Company and the Pan American Petroleum Company "were executed under circumstances indicating fraud and corruption".

Speaking of a fraud; the first Soviet Constitution was approved.  It'd be amended six times before being replaced with a new constitution in 1936.  It stated:

The Russian Socialist Federal Soviet Republic, the Socialist Soviet Republic of Ukraine, the Socialist Soviet Republic of White Russia, and the Socialist Soviet Republic of Transcaucasia (including the Socialist Soviet Republic of Azerbaijan, the Socialist Soviet Republic of Georgia, and the Socialist Soviet Republic of Armenia) –unite themselves in one federal State–“The Union of Socialist Soviet Republics.” [Amended April 18, 1925, “so as to include the Socialist Republic of Turkmenia and the Uzbek Socialist Republic.”]

Chapter I. Attributions of the Supreme Organs of Power of the Union

ARTICLE 1. The Union of Socialist Soviet Republics through its supreme organs has the following powers:

(a) To represent the Union in its international relations; to conclude all diplomatic relations; to conclude treaties, political and otherwise, with other States;

(b) To modify the exterior frontiers of the Union, as well as to regulate questions concerning the modification of frontiers between the member Republics;

(c) To conclude treaties concerning the reception of new Republics into the Union;

(d) To declare war and to conclude peace;

(e) To conclude internal and external loans of the Union and to authorize internal and external loans of the member Republics;

(f) To ratify international treaties;

(g) To direct commerce with foreign countries and to determine the system of internal commerce;

(h) To establish the bases and the general plan of all national economy of the Union; to define the domains of industry and industrial enterprises that are of federal interest; to conclude treaties of concession both federal and in the name of the member Republics;

(i) To direct transportation and the postal and telegraphic services;

(j) To organize and direct the armed forces of the Union;

(k) To approve the budget of the Federal State which includes the budgets of the member Republics; to establish duties and federal revenues, making additions and reductions in order to balance the member Republics’ budgets; to authorize duties and supplementary taxes to meet the member Republics’ budgets;

(l) To establish a uniform system of money and credit;

(m) To establish general principles of exploitation and use of the earth, as well as those of the subsoil, the forests, and the waters of the territories of the Union;

(n) To establish federal legislation on the emigration from the territory of one of the Republics to the territory of another and to set up a fund for such emigration;

(o) To establish principles of the judicial organization and procedure, as well as civil and criminal legislation for the Union;

(p) To establish the fundamental laws regarding work;

(q) To establish the general principles regarding public instruction;

(r) To establish the general measures regarding public hygiene;

(s) To establish a standard system of weights and measures;

(t) To organize federal statistics;

(u) To fix the fundamental legislation regarding federal nationality, with reference to the rights of foreigners;

(v) To exercise the right of amnesty in all territories of the Union;

(w) To abrogate the acts of the Congresses of the Soviets and the Central Executive Committees of the member Republics contrary to the present Constitution;

(x) To arbitrate litigious questions between the member Republics.

ARTICLE 2. The approval and modification of the fundamental principles of the present Constitution belong exclusively to the Congress of Soviets of the Union of Socialist Soviet Republics.

Chapter II. Sovereign Rights of the Member Republics

ARTICLE 3. The Sovereignty of the member Republics is limited only in the matters indicated in the present Constitution, as coming within the competence of the Union. Outside of those limits, each member Republic exerts its public powers independently; the USSR protects the rights of member Republics.

ARTICLE 4. Each one of the member Republics retains the right to freely withdraw from the union.

ARTICLE 5. The member Republics will make changes in their Constitutions to conform with the present Constitution.

ARTICLE 6. The territory of the member Republics cannot be modified without their consent; also, any limitation or modification or suppression of Article 4 must have the approval of all the member Republics of the Union.

ARTICLE 7. Just one federal nationality is established for the citizens of the member Republics.

Chapter III. Congress of Soviets of the Union

ARTICLE 8. The supreme organ of power of the USSR is the Congress of Soviets, and, in the recesses of the Congress of Soviets–the Central Executive Committee of the USSR which is composed of the Federal Soviet and the Soviet of Nationalities.

ARTICLE 9. The Congress of Soviets of the USSR is composed of representatives of the urban Soviets and of the Soviets of the urban type, on the basis of one deputy per 25,000 electors, and of representatives of the Congresses of Soviets of the rural districts on the basis of one deputy per 125,000 inhabitants.

ARTICLE 10. The delegates to the Congress of the Soviets of the USSR are elected in the Congresses of Soviets of the rural and urban governments. In the Republics where there does not exist a rural division, the delegates are elected directly to the Congress of Soviets of the respective Republic.

ARTICLE 11. Regular sessions of the Congress of the Soviets of the USSR are convoked by the Central Executive Committee of the Union once yearly; extraordinary sessions may be convoked on decision of the CEC (Central Executive Committee), or on the demand of the Federal Soviet, or of the Soviet of Nationalities, or on the demand of two member Republics.

ARTICLE 12. In cases where extraordinary circumstances interfere with the meeting of the Congress of Soviets of the USSR on the date set, the CEC of the Union has the power to adjourn the meeting of Congress.

Chapter IV. The Central Executive Committee of the Union

ARTICLE 13. The Central Executive Committee (CEC) of the USSR is composed of the Federal Soviet and the Soviet of Nationalities.

ARTICLE 14. The Congress of Soviets of the USSR elects the Federal Soviet from among the representatives of the member Republics in proportion to the population of each one to make a grand total of 371 members.

ARTICLE 15. The Soviet of Nationalities is composed of representatives of the member Republics and associated autonomous Republics of the RSFSR on the basis of five representatives for each member Republic, and one representative for each associated autonomous Republic. The composition of the Soviet of Nationalities in its entirety is approved by the Congress of the USSR.

(The autonomous Republics of Adzharia, and Abkhazia and the autonomous region of Ossetia, each send a representative to the Soviet of Nationalities.)

ARTICLE 16. The Federal Soviet and the Soviet of Nationalities examine all decrees, codes, and acts that are presented to them by the Presidium of the CEC and by the Council of People’s Commissars of the USSR, by the different Commissions of the People of the Union, by the CEC of the member Republics, as well as those that owe their origin to the Federal Soviet and the Soviet of Nationalities.

ARTICLE 17. The CEC of the Union publishes the codes, decrees, acts, and ordinances; orders the work of legislation and administration of the USSR, and -defines the sphere of activity of the Presidium of the CEC and of the Council of People’s Commissars of the USSR

ARTICLE 18. All decrees and acts defining the general rules of the political and economic life of the USSR, or making radical modifications in the existing practices of public organs of the USSR must obligatorily be submitted for examination and approval to the CEC of the USSR

ARTICLE 19. All decrees, acts, and ordinances promulgated by the CEC must be immediately put into force throughout all the territory of the USSR

ARTICLE 20. The CEC of the USSR has the right to suspend or abrogate the decrees, acts, and orders of the Presidium of the CEC of the USSR, as well as those of the Congress of Soviets and of the CEC of the Member Republics, and all other organs of power throughout the territory of the USSR

ARTICLE 21. The ordinary sessions of the CEC of the USSR are convoked by the Presidium of the CEC three times yearly. The extraordinary sessions are convoked by the Presidium of the CEC of the USSR on the demand of the Presidium of the Federal Soviet of the Presidium of the Soviet nationalities, and also on demand of one of the CEC of the member Republics.

ARTICLE 22. The projects of law submitted for examination to the CEC of the USSR do not have the force of law until adopted by the Federal Soviet and by the Soviet of Nationalities; they are published in the name of the CEC of the USSR

ARTICLE 23. In case of disagreement between the Federal Soviet and the Soviet of Nationalities, the question is transmitted to a compromise committee chosen by the two of them.

ARTICLE 24. If an accord is not reached by the compromise committee, the question is transferred for examination to a joint meeting of the Federal Soviet and the Soviet of Nationalities; and, if neither the Federal Soviet nor the Soviet of Nationalities get a majority, then the question may be submitted, on the demand of one of these organs to the decision of an ordinary or extraordinary Congress of the USSR

ARTICLE 25. The Federal Soviet and the Soviet of Nationalities elect for the preparation of their sessions and the direction of their work- -their Presidiums, composed of seven members each.

ARTICLE 26. Between sessions of the CEC of the USSR, the supreme organ of power is the Presidium of the USSR, constituted by the CEC to the extent of 21 members, including the Presidium of the Federal Soviet and the Presidium of the Soviet of Nationalities.

To form the Presidium of the CEC and the Council of People’s Commissars of the USSR, conforming to Articles 26 and 37 of the present Constitution, joint sessions of the Federal Soviet and of the Soviet of Nationalities are convoked. In the joint session of the Federal Soviet and the Soviet of Nationalities, the vote is taken separately within each group.

ARTICLE 27. The CEC elects, in accordance with the number of member Republics, 4 Presidents of the CEC of the USSR from among the members of the Presidium of the CEC of the USSR

ARTICLE 28. The CEC of the USSR is responsible before the Congress of Soviets of the USSR

Chapter V. The Presidium of the CEC of the Union

ARTICLE 29. Between sessions of the CEC of the USSR, the Presidium of the CEC of the USSR is the supreme organ of legislative, executive, and administrative power of the USSR

ARTICLE 30. The Presidium of the CEC of the USSR oversees the enforcement of the Constitution of the USSR and the execution of all decisions of the Congress of Soviets and the CEC of the USSR by all the public agents.

ARTICLE 31. The Presidium of the CEC of the USSR has the right to suspend and abrogate the orders of the Council of People’s Commissars and of the different Councils of the People of the Union of the S. S. R. as well as those of the CEC and CPC (Councils of People’s Commissars) of the member Republics.

ARTICLE 32. The Presidium of the CEC of the USSR has the right to suspend the acts of the Congresses of Soviets of the member Republics submitting afterwards these acts for the examination and approval of the CEC of the USSR

ARTICLE 33. The Presidium of the CEC of the USSR promulgates the decrees, acts, and orders; examines and approves the projects of decrees and acts deposited by the CPC, by the different authorities of the USSR, by the CEC of the member Republics, by their Presidiums and by other organs of power.

ARTICLE 34. The decrees and decisions of the CEC, of its Presidium, and the CPC of the USSR are printed in the languages generally employed in the member Republics: Russian, Ukrainian, White Russian, Georgian, Armenian, Turko-Tartar.

ARTICLE 35. The Presidium of the CEC of the USSR decides questions regarding the relationships between the CPC of the USSR and the People’s Commissars of the USSR, for one part and the CEC of the member Republics and their Presidiums, for the second part.

ARTICLE 36. The Presidium of the CEC of the USSR is responsible before the CEC of the USSR

Chapter VI. Council of People’s Commissars of the Union

ARTICLE 37. The Council of People’s Commissars (CPC) of the USSR is the executive and administrative organ of the CEC of the USSR and is constituted by the CEC as follows:

(a) The President of the Council of People’s Commissars of the USSR,

(b) The Vice- Presidents, (c) The Commissioner of the People for Foreign Affairs,

(d) The Commissioner of the People for Military and Naval Affairs,

(e) The Commissioner of the People for Foreign Commerce, (f) The Commissioner of the People for Ways of Communication,

(g) The Commissioner of the People for Postal and Telegraphic Service,

(h) The Commissioner of the People for the Inspection of Workers and Peasants,

(i) The President of the Supreme Council of National Economy,

(j) The Commissioner of the People for Labor,

(k) The Commissioner of the People for Finances

(l) The Commissioner of the People for Supplies.

ARTICLE 38. The Council of People’s Commissars of the USSR, in the limits of the powers granted to it by the CEC of the USSR and on the basis of rules regulating the CPC of the USSR, publishes the decrees and decisions that must become effective throughout the territory of the USSR

ARTICLE 39. The CPC of the USSR examines the decrees and decisions given it by the various Commissions of the People as well as those from the CEC of the member Republics and by their Presidiums.

ARTICLE 40. The CPC of the USSR is responsible for all its work before the CEC of the USSR and before its Presidium.

ARTICLE 4 1. The orders and acts of the CPC of the USSR may be suspended and abrogated by the CEC of the USSR and by its Presidium.

ARTICLE 42. The Central Executive Committees of the member Republics and their Presidiums may object to the decrees and orders of the CPC of the USSR to the Presidium of the CEC of the USSR, without suspending the execution of these orders.

Chapter VII. The Supreme Court of the Union

ARTICLE 43. In order to maintain revolutionary legality within the territory of the USSR, a Supreme Court under the jurisdiction of the CEC of the USSR is established, competent:

(a) To give the Supreme Courts of the member Republics the authentic interpretations on questions of federal legislation;

(b) To examine, on the request of the Prosecutor of the Supreme Court of the USSR, the decrees, decisions, and verdicts of the Supreme Courts of the member Republics, with view of discovering any infraction of the federal laws, or harming the interests of other Republics, and if such be discovered to bring them before the CEC of the USSR

(c) To render decisions on the request of the CEC of the USSR, as to the constitutionality of laws passed by the member Republics;

(d) To settle legal disputes between the member Republics;

(e) To examine the accusations brought before it of high officials against whom charges have been made relative to their performance of duties.

ARTICLE 44. The Supreme Court performs its functions in the following manner:

(a) With a full attendance of the member judges of the Supreme Court of the USSR;

(b) Or, in a meeting of the Civil Judiciary College and the Criminal Judiciary College of the Supreme Court of the USSR;

(c) Or, in a meeting of the Military College.

ARTICLE 45. The Supreme Court of the USSR, in full session, is composed of 11 members, 6 including its President and Vice-President, the four Presidents of the Supreme Courts of the member Republics, and a representative of the Unified Political Administration of the State of the USSR, the President and the Vice-President and the other five members are named by the Presidium of the CEC of the USSR

ARTICLE 46. The Prosecutor of the Supreme Court of the USSR and his assistant are named by the Presidium of the CEC of the USSR The Prosecutor of the Supreme Court of the USSR is charged with the duties; (1) to give the decisions of all questions in the jurisdiction of the Supreme Court of the USSR, (2) to prosecute the cases brought before the Court, (3) and, in cases of lack of agreement among the judges of the Supreme Court of the USSR, to bring these questions of dispute before the Presidium of the CEC of the S. S. R.

ARTICLE 47. The right to submit the questions referred to in Article 43 to the Supreme Court of the USSR for examination belongs exclusively to the CEC of the USSR, to its Presidium, to the Prosecutor of the Supreme Courts of the member Republics, and to the Unified Political Administration of the State of the USSR

ARTICLE 48. The regular sessions of the Supreme Court of the USSR constitute the special legal chambers to examine:

(a) The civil and criminal affairs of exceptional importance that are of interest to two or more member Republics;

(b) Personal charges against members of the CEC and the CPC of the USSR

A decision of the Supreme Court of the USSR to proceed to examine a case may take place only after special authority has been granted for each case by the CEC of the Union or its Presidium.

Chapter VIII. People’s Commissars of the Union

ARTICLE 49. For the immediate direction of the several branches of public administration, attributed to the CPC of the Union of the SSR, 10 People’s Commissars are created as mentioned in Article 37 of the Present Constitution and who act according to the regulations of the People’s Commissars approved by the CEC of the Union of the SSR

ARTICLE 50. The People’s Commissars of the USSR are divided into the following groups:

(a) People’s Commissars handling strictly federal matters of the USSR that are external in character;

(b) People’s Commissars handling matters that are purely domestic in character.

ARTICLE 51. The first group of Commissars handling matters external in character includes the following People’s Commissars:

(a) For Foreign Affairs

(b) For Military and Naval Affairs

(c) For Foreign Commerce

(d) For Ways of Communication

(e) For Postal and Telegraphic Service

ARTICLE 52. The second group handling matters that are strictly domestic in character includes the following People’s Commissars:

(a) The Council of National Economy

(b) For Supplies,

(c) For Labor

(d) For Finances,

(e) For the Inspection of Workers and Peasants.

ARTICLE 53. The People’s Commissars handling matters of purely external character have, in the various member Republics, their delegates directly subordinate to these Commissars.

ARTICLE 54. The People’s Commissars handling matters of domestic concern have, as executing organs in the various member Republics, the People’s Commissars of these Republics of similar title.

ARTICLE 55. The CPC of the USSR, including the individual Commissars, are the heads of the various departments mentioned.

ARTICLE 56. Under each Commissioner of the People, and under his presidency, is formed a college, of which the members are named by the CPC of the USSR

ARTICLE 57. The Commissioner of the People has the right to personally take decisions on all questions that come within the jurisdiction of his department, on advising the College of his department of his act. In case of disagreement on any decision of the Commissioner of the People, the College, or its members separately, may bring the dispute before the CPC of the USSR, without suspending the act of the Commissioner.

ARTICLE 58. The orders of the different People’s Commissars of the Union may be abrogated by the Presidium of the CEC and by the CPC of the USSR

ARTICLE 59. The orders of the People’s Commissars of the USSR may be suspended by the CEC or by the Presidiums of the CEC of the member Republic in case of evident incompatibility of these orders with the Federal Constitution, with federal legislation or with legislation of the member Republic. This suspension is immediately communicated by the CEC or by the Presidiums of the CEC of the member Republics to the CPC of the USSR and to the proper Commissioner of the People of the USSR

ARTICLE 60. The People’s Commissars of the USSR are responsible before the CPC, the CEC of the USSR and its Presidium.

Chapter IX. The Unified Political Administration of State

ARTICLE 61. In view of unifying the revolutionary efforts of the member Republics in their struggle against the political and economic counter-revolution, spying and banditry, there shall be created under the jurisdiction of the CPC of the USSR, a Unified Political Administration of State (GPU) of which the President shall be a consulting member of the CPC of the USSR

ARTICLE 62. The GPU of the USSR directs the activities of the local organs of GPU through its delegates under the jurisdiction of the CPC of the member Republics, acting in virtue of a special ruling sanctioned through legislative channels.

ARTICLE 63. The overseeing of acts of the GPU as to their legality shall be in charge of the Prosecutor of the Supreme Court of the USSR in virtue of a special ruling of the CEC of the USSR

Chapter X. The Member Republics

ARTICLE 64. Within the limits of the territory of each member Republic the supreme organ of power is the Congress of Soviets of the Republic, and in Congressional recesses, its Central Executive Committee.

ARTICLE 65. The relations between the supreme organs of power of the member Republics and the supreme organs of power of the USSR are established by the present Constitution.

ARTICLE 66. The CEC of the member Republics elect from among their own membership the Presidiums that in the recesses between sessions of the CEC are the Supreme organs of power.

ARTICLE 67. The CEC of the member Republics will form their executive organs–the Councils of People’s Commissars, as follows:

(a) The President of the Council of People’s Commissars,

(b) The Vice- Presidents.

(c) The President of the Supreme Council for National Economy,

(d) The Commissioner of the People for Agriculture, (e) The Commissioner of the People for Finances

(f) The Commissioner of the People for Supplies, (g) The Commissioner of the People for Labor

(h) The Commissioner of the People for the Interior, (i) The Commissioner of the People for Justice,

(j) The Commissioner of the People for the Inspection of the Workers and Peasants,

(k) The Commissioner of the People for Public Instruction, (l) The Commissioner of the People for Public Health

(m) The Commissioner of the People for Social Precaution, and in addition, and with a voice either consultative or deliberative, according to the decision of the CEC of the member Republics, Delegates of the People’s Commissars of the USSR for Foreign Affairs, for Military and Naval Affairs, for Foreign Commerce, for Ways of Communication, for Postal and Telegraphic Service.

ARTICLE 68. The Supreme Council of National Economy and the Commissars of Supplies, of Finances, of Labor, ‘of the Inspection of Workers and Peasants of the member Republics, while being subordinate to the CEC and CPC of the member Republics, will execute the orders of the CPC of the USSR

ARTICLE 69. The right of amnesty, as well as the right of pardon and the rehabilitation of citizens condemned by the judicial and administrative organs of the member Republics belongs to the CEC of these Republics.

Chapter XI. Arms, Flag and Capital of the Union

ARTICLE 70. The insignia of the State of the USSR is composed of a sickle and a hammer on an earthly globe, surrounded by sun rays and framed with wheat stalks, with an inscription in the six languages mentioned in Article 34: “Proletarians of all countries, unite!” Above the insignia, there shall be a five pointed star.

ARTICLE 71. The flag of the State of the USSR shall be in red or vermilion cloth with the arms of the Union.

ARTICLE 72. The Capital of the USSR is Moscow.

Joe Jackson called White Sox owner Charles Cominskey as a hostile witness in his trial for back wages.

Prussian state executioner Paul Spaethe, whose wife had died 24 days prior, lit 45 candles for the 45 people he had executed and then committed suicide.

Epitaphs of the War By Rudyard Kipling 1914-18 an only son

I have slain none except my Mother.    

She  (Blessing her slayer) died of grief for me.

Epitaphs of the War. Rudyard Kipling

a servant 

We were together since the War began. 

He was my servant—and the better man.

Epitaphs of the War by Rudyard Kipling

  “equality of sacrifice” 

A. “I was a Have.”   B. “I was a ‘have-not.’” 

    (Together). “What hast thou given which I gave not?” 

Wednesday, June 2, 1943. Lwów Ghetto brougth to an end.

The Germans completed the liquidation of the Lwów Ghetto in Poland.  The city, which once contained a population of 160,000 Jewish Poles, is now in Ukraine and known as Lviv. It had been contested for in the Polish Ukrainian War.  During that battle, the Jewish population of the town had formed its own militia.

Sarah Sundin notes in her blog:

Today in World War II History—June 2, 1943: Combat debut of US 99th Fighter Squadron, the first Black unit in the Army Air Force (“Tuskegee Airmen”), in a Twelfth Air Force mission to Pantelleria.

And, a link from another blog we follow:

June 2, 1943: The Death of Nile Kinnick

Thursday, October 26, 1972. "We believe that peace is at hand".

So stated Henry Kissinger publicly, and just eleven days prior to the 1972 Presidential Election.

Kissinger, Nixon and Alexander Haig at Camp David in 1972.

Nixon did not approve as he felt that Kissinger was hogging the limelight through the announcement, however Kissinger noted that the North Vietnamese had already published the text of the draft agreement.

Unbeknownst to the public, neither Nixon or Kissinger believed that the Republic of Vietnam had any chance of holding out long term against North Vietnam, and they were putting heavy pressure on the South Vietnamese, who had little faith in their abilities themselves to cooperate.

Igor Sikorsky, aviation giant and developer of helicopters, died on this day at age 83.

Sikorsky was born in Kyiv to Russian parents.  His father was an internationally known psychiatrist and his mother a physician, meaning he was born into an unusual family for the era.  He was drawn to aviation very early in his life and studied in Paris.  He worked in Paris during World War One and did not return to Russia due to the Russian Revolution, immigrating to the United States in 1919.  His first wife accordingly divorced him, as she remained in Russia with their daughter.  

Sikorsky's pioneering work in helicopters would end up being of enormous benefit to his adopted country, and his company still is a leader in heavy helicopters.

A thought.

If Russia is intent on annexing portions of Ukraine, so it can be claimed to be acting in defense of its own territory. . . 

maybe Ukraine should annex Russian territory to the limits of its 1919 borders first.

Putting another log on the fire. Joe Biden stokes the inflationary fires with debt forgiveness.

 High school students, Pennsylvania, 1942.

First, even though I know that it'll make for a really long post, let me put in the White House's actual announcement on its forgiving student debt decision.

FACT SHEET: President Biden Announces Student Loan Relief for Borrowers Who Need It Most

AUGUST 24, 2022•STATEMENTS AND RELEASES

A three-part plan delivers on President Biden’s promise to cancel $10,000 of student debt for low- to middle-income borrowers

President Biden believes that a post-high school education should be a ticket to a middle-class life, but for too many, the cost of borrowing for college is a lifelong burden that deprives them of that opportunity. During the campaign, he promised to provide student debt relief. Today, the Biden Administration is following through on that promise and providing families breathing room as they prepare to start re-paying loans after the economic crisis brought on by the pandemic.

Since 1980, the total cost of both four-year public and four-year private college has nearly tripled, even after accounting for inflation. Federal support has not kept up: Pell Grants once covered nearly 80 percent of the cost of a four-year public college degree for students from working families, but now only cover a third. That has left many students from low- and middle-income families with no choice but to borrow if they want to get a degree. According to a Department of Education analysis, the typical undergraduate student with loans now graduates with nearly $25,000 in debt. 

The skyrocketing cumulative federal student loan debt—$1.6 trillion and rising for more than 45 million borrowers—is a significant burden on America’s middle class. Middle-class borrowers struggle with high monthly payments and ballooning balances that make it harder for them to build wealth, like buying homes, putting away money for retirement, and starting small businesses.

For the most vulnerable borrowers, the effects of debt are even more crushing. Nearly one-third of borrowers have debt but no degree, according to an analysis by the Department of Education of a recent cohort of undergraduates. Many of these students could not complete their degree because the cost of attendance was too high. About 16% of borrowers are in default – including nearly a third of senior citizens with student debt – which can result in the government garnishing a borrower’s wages or lowering a borrower’s credit score. The student debt burden also falls disproportionately on Black borrowers. Twenty years after first enrolling in school, the typical Black borrower who started college in the 1995-96 school year still owed 95% of their original student debt.

Today, President Biden is announcing a three-part plan to provide more breathing room to America’s working families as they continue to recover from the strains associated with the COVID-19 pandemic. This plan offers targeted debt relief as part of a comprehensive effort to address the burden of growing college costs and make the student loan system more manageable for working families. The President is announcing that the Department of Education will:   

Provide targeted debt relief to address the financial harms of the pandemic, fulfilling the President’s campaign commitment. The Department of Education will provide up to $20,000 in debt cancellation to Pell Grant recipients with loans held by the Department of Education, and up to $10,000 in debt cancellation to non-Pell Grant recipients. Borrowers are eligible for this relief if their individual income is less than $125,000 ($250,000 for married couples). No high-income individual or high-income household – in the top 5% of incomes – will benefit from this action. To ensure a smooth transition to repayment and prevent unnecessary defaults, the pause on federal student loan repayment will be extended one final time through December 31, 2022. Borrowers should expect to resume payment in January 2023. 

Make the student loan system more manageable for current and future borrowers by:

Cutting monthly payments in half for undergraduate loans. The Department of Education is proposing a new income-driven repayment plan that protects more low-income borrowers from making any payments and caps monthly payments for undergraduate loans at 5% of a borrower’s discretionary income—half of the rate that borrowers must pay now under most existing plans. This means that the average annual student loan payment will be lowered by more than $1,000 for both current and future borrowers.

Fixing the broken Public Service Loan Forgiveness (PSLF) program by proposing a rule that borrowers who have worked at a nonprofit, in the military, or in federal, state, tribal, or local government, receive appropriate credit toward loan forgiveness. These improvements will build on temporary changes the Department of Education has already made to PSLF, under which more than 175,000 public servants have already had more than $10 billion in loan forgiveness approved. 

Protect future students and taxpayers by reducing the cost of college and holding schools accountable when they hike up prices. The President championed the largest increase to Pell Grants in over a decade and one of the largest one-time influxes to colleges and universities. To further reduce the cost of college, the President will continue to fight to double the maximum Pell Grant and make community college free. Meanwhile, colleges have an obligation to keep prices reasonable and ensure borrowers get value for their investments, not debt they cannot afford. This Administration has already taken key steps to strengthen accountability, including in areas where the previous Administration weakened rules. The Department of Education is announcing new efforts to ensure student borrowers get value for their college costs.

Provide Targeted Debt Relief, Fulfilling the President’s Campaign CommitmentTo address the financial harms of the pandemic for low- and middle-income borrowers and avoid defaults as loan repayment restarts next year, the Department of Education will provide up to $20,000 in loan relief to borrowers with loans held by the Department of Education whose individual income is less than $125,000 ($250,000 for married couples) and who received a Pell Grant. Nearly every Pell Grant recipient came from a family that made less than $60,000 a year, and Pell Grant recipients typically experience more challenges repaying their debt than other borrowers. Borrowers who meet those income standards but did not receive a Pell Grant in college can receive up to $10,000 in loan relief.

The Pell Grant program is one of America’s most effective financial aid programs—but its value has been eroded over time. Pell Grant recipients are more than 60% of the borrower population. The Department of Education estimates that roughly 27 million borrowers will be eligible to receive up to $20,000 in relief, helping these borrowers meet their economic potential and avoid economic harm from the COVID-19 pandemic.

Current students with loans are eligible for this debt relief. Borrowers who are dependent students will be eligible for relief based on parental income, rather than their own income.

If all borrowers claim the relief they are entitled to, these actions will:

Provide relief to up to 43 million borrowers, including cancelling the full remaining balance for roughly 20 million borrowers.

Target relief dollars to low- and middle-income borrowers. The Department of Education estimates that, among borrowers who are no longer in school, nearly 90% of relief dollars will go to those earning less than $75,000 a year. No individual making more than $125,000 or household making more than $250,000 – the top 5% of incomes in the United States – will receive relief.

Help borrowers of all ages. The Department of Education estimates that, among borrowers who are eligible for relief, 21% are 25 years and under and 44% are ages 26-39. More than a third are borrowers age 40 and up, including 5% of borrowers who are senior citizens.

Advance racial equity. By targeting relief to borrowers with the highest economic need, the Administration’s actions are likely to help narrow the racial wealth gap. Black students are more likely to have to borrow for school and more likely to take out larger loans. Black borrowers are twice as likely to have received Pell Grants compared to their white peers. Other borrowers of color are also more likely than their peers to receive Pell Grants. That is why an Urban Institute study found that debt forgiveness programs targeting those who received Pell Grants while in college will advance racial equity.

The Department of Education will work quickly and efficiently to set up a simple application process for borrowers to claim relief. The application will be available no later than when the pause on federal student loan repayments terminates at the end of the year. Nearly 8 million borrowers may be eligible to receive relief automatically because their relevant income data is already available to the Department.  

Thanks to the American Rescue Plan, this debt relief will not be treated as taxable income for the federal income tax purposes.

To help ensure a smooth transition back to repayment, the Department of Education is extending the student loan pause a final time through December 31, 2022. No one with federally-held loans has had to pay a single dollar in loan payments since President Biden took office.

Make the Student Loan System More Manageable for Current and Future Borrowers

Fixing Existing Loan Repayment to Lower Monthly Payments

The Administration is reforming student loan repayment plans so both current and future low- and middle-income borrowers will have smaller and more manageable monthly payments.

The Department of Education has the authority to create income-driven repayment plans, which cap what borrowers pay each month based on a percentage of their discretionary income. Most of these plans cancel a borrower’s remaining debt once they make 20 years of monthly payments. But the existing versions of these plans are too complex and too limited. As a result, millions of borrowers who might benefit from them do not sign up, and the millions who do sign up are still often left with unmanageable monthly payments.

To address these concerns and follow through on Congress’ original vision for income-driven repayment, the Department of Education is proposing a rule to do the following

For undergraduate loans, cut in half the amount that borrowers have to pay each month from 10% to 5% of discretionary income.

Raise the amount of income that is considered non-discretionary income and therefore is protected from repayment, guaranteeing that no borrower earning under 225% of the federal poverty level—about the annual equivalent of a $15 minimum wage for a single borrower—will have to make a monthly payment.

Forgive loan balances after 10 years of payments, instead of 20 years, for borrowers with original loan balances of $12,000 or less. The Department of Education estimates that this reform will allow nearly all community college borrowers to be debt-free within 10 years.

Cover the borrower’s unpaid monthly interest, so that unlike other existing income-driven repayment plans, no borrower’s loan balance will grow as long as they make their monthly payments—even when that monthly payment is $0 because their income is low

These reforms would simplify loan repayment and deliver significant savings to low- and middle-income borrowers. For example:

A typical single construction worker (making $38,000 a year) with a construction management credential would pay only $31 a month, compared to the $147 they pay now under the most recent income-driven repayment plan, for annual savings of nearly $1,400.

A typical single public school teacher with an undergraduate degree (making $44,000 a year) would pay only $56 a month on their loans, compared to the $197 they pay now under the most recent income-driven repayment plan, for annual savings of nearly $1,700.

A typical nurse (making $77,000 a year) who is married with two kids would pay only $61 a month on their undergraduate loans, compared to the $295 they pay now under the most recent income-driven repayment plan, for annual savings of more than $2,800.

For each of these borrowers, their balances would not grow as long as they are making their monthly payments, and their remaining debt would be forgiven after they make the required number of qualifying payments.

Further, the Department of Education will make it easier for borrowers who enroll in this new plan to stay enrolled. Starting in the summer of 2023, borrowers will be able to allow the Department of Education to automatically pull their income information year after year, avoiding the hassle of needing to recertify their income annually.

Ensuring Public Servants Receive Credit Toward Loan Forgiveness

Borrowers working in public service are entitled to earn credit toward debt relief under the Public Service Loan Forgiveness (PSLF) program. But because of complex eligibility restrictions, historic implementation failures, and poor counseling given to borrowers, many borrowers have not received the credit they deserve for their public service.

The Department of Education has announced time-limited changes to PSLF that provide an easier path to forgiveness of all outstanding debt for eligible federal student loan borrowers who have served at a non-profit, in the military, or in federal, state, Tribal, or local government for at least 10 years, including non-consecutively. Those who have served less than 10 years may now more easily get credit for their service to date toward eventual forgiveness. These changes allow eligible borrowers to gain additional credit toward forgiveness, even if they had been told previously that they had the wrong loan type.

The Department of Education also has proposed regulatory changes to ensure more effective implementation of the PSLF program moving forward. Specifically, the Department of Education has proposed allowing more payments to qualify for PSLF including partial, lump sum, and late payments, and allowing certain kinds of deferments and forbearances, such as those for Peace Corps and AmeriCorps service, National Guard duty, and military service, to count toward PSLF. The Department of Education also proposed to ensure the rules work better for non-tenured instructors whose colleges need to calculate their full-time employment.

To ensure borrowers are aware of the temporary changes, the White House has launched four PSLF Days of Action dedicated to borrowers in specific sectors: government employees, educators, healthcare workers and first responders, and non-profit employees. You can find out other information about the temporary changes on PSLF.gov. You must apply to PSLF before the temporary changes end on October 31, 2022.

Protecting Borrowers and Taxpayers from Steep Increases in College Cost

While providing this relief to low- and middle-income borrowers, the President is focused on keeping college costs under control. Under this Administration, students have had more money in their pockets to pay for college. The President signed the largest increase to the maximum Pell Grant in over a decade and provided nearly $40 billion to colleges and universities through the American Rescue Plan, much of which was used for emergency student financial aid, allowing students to breathe a little easier.

Additionally, the Department of Education has already taken significant steps to strengthen accountability, so that students are not left with mountains of debt with little payoff. The agency has re-established the enforcement unit in the Office of Federal Student Aid and it is holding accreditors’ feet to the fire. In fact, the Department just withdrew authorization for the accreditor that oversaw schools responsible for some of the worst for-profit scandals. The agency will also propose a rule to hold career programs accountable for leaving their graduates with mountains of debt they cannot repay, a rule the previous Administration repealed.

Building off of these efforts, the Department of Education is announcing new actions to hold accountable colleges that have contributed to the student debt crisis. These include publishing an annual watch list of the programs with the worst debt levels in the country, so that students registering for the next academic year can steer clear of programs with poor outcomes. They also include requesting institutional improvement plans from the worst actors that outline how the colleges with the most concerning debt outcomes intend to bring down debt levels. 

***   

More information on claiming relief will be available to borrowers in the coming weeks. 

Borrowers can sign up to be notified when this information is available at StudentAid.gov/debtrelief.

This is going to be controversial.

So, let's cut to the chase.

We've posted on the American student loan system before, which exists in the happy mythical world of the 1960s, really.  In that world, high school students, rather than get manual labor jobs at General Motors, are given a chance to get a bachelor's degree, as any bachelor's degree means that they can walk into any office across the United States, wearing a clean white button down shirt and black tie, with gray wool slacks, and become an executive.

And in the 50s, 60s and 70s, there was a lot of truth in that, which is why the GI Bill, which in some ways all American "loan" programs are based on, was such as success.

That world hasn't existed for a long time.

Since World War Two, Americans became highly acclimated to loans in general.  Going back before the war, usually the only major loan that most people had was on their house, although surprisingly automobile loans date back all the way to the 1910s, and Ford Motors introduced financing for their cars in 1919.  There were installment plans on some things as well, such as major appliances, but for real personal debt, houses were it, followed by cars.  Credit cards didn't start to come into existence until the 1950s and 1960s, and had very limited, and often specialized, use.

American student loans did not exist until 1958, when they came into existence as part of the National Defense Education Act. That act was structured the way that student loan bills still should be, it provided loans only in categories of national strategic need, specifically engineering, science and education.  In 1965, however, loans were broadened out with the Higher Education Act of 1965, which saw advancing higher education as a means of advancing social mobility.  I.e., it was part of Johnson's Great Society.

It was in 1973, however, that the entire project took a giant leap with the Student Loan Marketing Association, Sallie Mae, which joined the group of female named Federal guaranteed loan projects which took the moral hazard out of lending for certain dicey propositions, such as home loans or educational endeavors with no real long term prospects.

Educational institutions really picked up on this, and it resulted in tuition inflation that came to grossly outstrip inflation.  It also encouraged the creation of pseudo disciplines in education and the resulting massive increase in the student bodies resulted in grade inflation.  This resulted, over time, in the devaluing of a college education.

No more walking out with your baccalaureate and into the boardroom.

In recent years this has led people like Bernie Sanders to suggest the solution for everything is to have the government pay for everything, as if too much isn't solving a problem, way too much surely will.  The better evidence is that at this point in time we'd be better off going back to the original loan model, or ending loans entirely.

Stepping into this now is Joe Biden, who is trying to follow up on a campaign promise to address this issue by hurling money at it, which gets into the Sanders mindset.  Sanders would likely just forgive them all and then pay for all higher education, because if making an education easy to get hasn't devalued it enough, then making it free surely will. . . oh, wait.

Biden's act doesn't contribute to that, but it's inflationary without a doubt.  Loan forgiveness is income.  Indeed, normally, loan forgiveness is taxed as income, but due to the Inflation Reduction Act this particular example at least will not be.   As this is the equivalent to passing money out, there's no two ways about it.

And the propaganda about it being aimed at lower income people is just that.  Providing relief to the children of couples who make up to $250,000 per year is clearly aimed at the middle class, as is the suggestion that it won't go to the "top 5%" of income earners, that being a category which is unlikely to have student loans in the first place.

So what this is, is a species of temporary subsidization of education for mostly the middle class.  It'll hit lower earners too, but the middle class will be the primary beneficiaries.

For a time.

But at the same time, it'll be inflationary, which hits the middle class the most, and given the level it's at, its benefit to the target audience is of low value anyhow.  So it contributes to the reduction in value of what everyone makes, contributes to the devaluing of education, provides cash to banks for making bad loans, and advances the concept that any higher level education is of economic value.

It's not the 1950s or 60s anymore.  It's not even 1973.  If we're going to have a government supported program, it ought to support a national purpose. This one really isn't anymore.  

And I'm not suggesting that a college education has no value. Far from it.  It's become, except for those born into fortunate circumstances, necessary.  Rather, I'm suggesting that this be protected.  As Kris Kristofferson noted, via Janis Joplin; "freedom's just another word for nothing else to lose, nothing don't cost nothing, but it's free".  I don't find this to be universally true, but in this instance, as with a lot of things that are "free", they come to have low or no value over time.  This has us headed one step further in that direction.

But benefits once conferred are difficult to withdraw.

Thursday, March 16, 1922. Trendsetters.

Walcott Rouse, March 16, 1922

 

On the same day that young Mr. Rouse was roller-skating with his dog in Washington, D.C., Ahmed Fuad Pasha was proclaimed King Fuad I of Egypt, making him one of only two kings in the country's mondern history.

He is mostly remembered for his son, who had a flamboyant if rocky and odd history.  Faud himself had an unhappy relationship with Farouk's mother, and indeed with both of his queens.  His first wife, Shivakiar Khanum Effendi, was his first cousin once removed.  They divorced in 1898, but Faud was shot in the throat by her brother during a dispute with her.  He survived that.  In 1919 he married Nazli Sabri, who was the maternal great-granddaughter of Suleiman Pasha, a French Napoleonic officer who converted to Islam.  She outlived Fuad but immigrated to the United States, reversing her great-grandfather's act, and converting to Catholicism.   She possessed the largest jewelry collection in the world.  Her youngest daughter Fathia also converted to Catholicism.

Louis "Lepke" Buchalter was released from Sing Sing and would go on in his criminal career, fairly shortly becoming the head of what was called "Murder Inc".  The latter was an organization in which the Mafia could arrange for contract killings through non Mafia members, thereby insulating them from implication in them.  Buchalter was executed for his crimes in 1944.

Friday, July 1, 1921. Reds in China.

                       

The Communist Party of China, which ultimately would have the blood of millions on its hands, was founded on this day in 1921, or at least claims to have been.  The actual date is somewhat murky, which is natural given the circumstances, but it was right about about this time, perhaps within a few days.

Symbol of the Chinese Communist Party, appropriately in blood red.

An alien introduction in the first place, the Chinese Communist Party grew out of the May 4th Movement which expressed student discontent with the Versailles Treaty, which had failed to recognize Chinese claims to German colonial holdings on Chinese territory, finding in favor of Japan instead. While Japan was a full belligerent in the war, the failure to assign these territories to China was clearly a violation of Wilson's Fourteen Points and a shocking denial of legitimate Chinese claims in favor of illegitimate Japanese ones.  While the protests were legitimate, they came at a time during which radical Marxism was gaining ground in Europe and those movements spilled over into China.  At nearly the same time, many of the same ideas would begin to get a toehold in Japan, along with concepts of extreme nationalism, such as would take hold in Germany and Italy.  For that matter, the Bolsheviks, even thought they lacked a firm grasp on Russia at the time, was active in promoting Communism in China and had an early foundational role in the CCP by 1919.

Student protest in May 4th Movement.

The same was somewhat true of the Chinese Nationalist Party, the KMT, and early on the CCP ended up being a wing of the KMT. Sun Yat Sen, one of the KMT's founders, was at least somewhat sympathetic to Communism and the KMT early on adopted certain Leninist principals.  Indeed, some proto communist elements have never left the KMT, which remains a significant political party in Taiwan.

The party struggled with the KMT until after World War Two, at which time it defeated the KMT in the Chinese Civil War on the mainland.  The story is a long and complicated one, as is the story of the KMT itself, which we'll perhaps detail elsewhere, as that story has its roots in the era we are focused on. Suffice it to say, the CCP continues to rule China to this day, but on a model that draws some influence from the Leninist NEP.  It can't continue to govern China forever, and while it remains strongly in place, it's long-term prospects are probably shorter than generally suspected.  It has become, in recent years, the most serious military threat to the United States and the first peer level military opponent of the US since the collapse of the Soviet Union.

On the same day the left wing government of Mexico imposed increased tariffs on the export of petroleum products which brought oil production and exploration to a halt.

Blog Mirror: Legal Origins of the Quebec Tavern (la Taverne)

 

Legal Origins of the Quebec Tavern (la Taverne)

April 18, 1921. Service.

On this Monday, April 18, 1921, Edith Barnett, who had died serving as an American nurse in far off Siberia, was remembered with a tombstone marked in English and Russian.  She had died of Typhus while serving as a Red Cross nurse there.

Some Gave All: April 18, 1921. "Grave of Edith Barnett of New Yo...:  

April 18, 1921. "Grave of Edith Barnett of New York City. An American Red Cross nurse who died in Siberia, Aug. 15, 1919. Monument placed at Tomsk, Siberia on April 18, 1921. Photograph taken on April 19, 1921"

Ontario voted, in a plebiscite, to ban the sale and importation of alcohol by a 60% margin.  An attempt at repealing the ordinance the following year by the same means failed.

How would you have voted?  I'm not a teetotaler, but I'm sure I would have voted for the measure.

Jacksonville Florida was photographed from the St. John's Bridge.

View of the Jacksonville Florida St John's Bridge, April 18, 1921.

President Harding seems to have had a busy day greeting groups.

Harding with Community House Kids.  I'm not sure who they were, but it appears to probably be a church based group.

Harding and Women's Commission for World Disarmament.  The group obviously did not succeed in its goals.

Gen. Herbert Lord of the Quartermaster Corps received an award consisting of draft horseshoes.

I don't know the actual occasion, but it may have been recognizing his service which was principally in administering its budget.  He'd go on to occupy the position of head of the OMB, although under a different title at the time, in the Harding Administration.

Poster Saturday: New Jersey Must Fight On

I'm not exactly certain what this 1919 vintage poster actually is seeking to advance.  It's a New Jersey Department of Health poster making reference to children and World War One, but why, exactly, isn't clear.

Blog Mirror: A Hundred Years Ago; A Thanksgiving Tale

A Thanksgiving Tale

September 27, 1920. Last Game for the Black Sox.

Chicago White Sox players "Shoeless Joe Jackson", Charles "Swede" Risberg and Buck Weaver played in their final professional major league baseball game of their career.

Joe Jackson.

The next day they were to be indicted due to the Black Sox Scandal.

Risburg, left and Weaver, right, during their trial.

Risburg, a shortstop, had received $15,000 for his role in fixing the World Series.  He played semi pro baseball for a decade and ended up owning a bar in his later years.  During his career he'd been spiked during a game and the injury never healed, resulting in the eventual amputation of his leg.  He remained a baseball fan throughout his life and died in California at age 81 in 1975.

Buck Weaver.

Weaver wasn't part of the scandal and fought, unsuccessfully, to be reinstated.  He was bitter about receiving the same penalty as the players who were guilty.  He successfully sued to receive his 1921 pay, but he never got back into professional baseball even though he tried for years to do so.  Often missed in his story, however, is that he knew that the fix was going on and, while not part of it, he didn't report it.

1919 White Sox.

Like other Black Sox team members, Weaver did play semi pro ball for years.  He remained in Chicago and also worked odd jobs to support a large extended family.  At one point he owned a series of six drug stores with his brother in law in Chicago and both men were offered partnerships in Walgreens, which they declined. All the stores were lost in the Great Depression.  Weaver died at age 65 in 1956 in Chicago.

Joe Jackson in 1919.

Often portrayed as a simple man, and he was indeed illiterate, Jackson twice refused the bribe money before another player threw the money on his hotel floor, after which he attempted to do what Weaver did not, get an audience with Cominsky, the team owner.  Cominsky refused to see him.  He was never present at any of the conspirators meetings and he played a good World Series.  Because of his illiteracy its difficult to tell what his view was of what was occuring, but it does seem to be likely that he knew the conspiracy was going on, and tried to do something about it, after which he may have refused to participate by playing a good Series.

Jackson and his wife Katie on their wedding day in 1908.

Jackson would manage and play in semi pro baseball for some time before moving to South Carolina where he and his wife ran a number of small businesses, including a dry cleaning shop, a barbecue restaurant and a liquor store.  He died of a heart attack at age 64 in 1951, making him the first of the Black Sox players to pass away.

On the same day some dignitaries from the French Army arrived in New York.

Major General Robert Lee Bullard and Marshal Marie Émile Fayolle at Fayolle's arrival at Governors Island, New York, September 27, 1920.