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Cyprus: No Good Deed Goes Unpunished

Cross posted from The Stars Hollow Gazette

Up Date 3.23.2013 0100 AM EDT: The Cyprus Parliament has passed part of a bailout plan but has delayed voting on a tax for unsecured deposits:

One of the provisions Parliament approved Friday would impose new restrictions on withdrawing cash or moving money out of the country when the banks reopen. These new capital controls would prohibit or restrict check-cashing and bar “premature” account closings or any other transaction the authorities deemed unwarranted.

Lawmakers also voted to restructure the nation’s largest and most troubled bank, Laiki Bank, by splitting off its troubled assets into a so-called bad bank. Accounts with no problem would be transferred to the nation’s largest financial institution, the Bank of Cyprus. Lawmakers also voted to require that any bank on the verge of bankruptcy be split apart in the same way. [..]

Still to be voted on is the measure to impose a tax of 22 to 25 percent on uninsured deposits at the Bank of Cyprus. That proposal was made after lawmakers rejected a plan earlier in the week to tax insured deposits to help raise the amount needed to secure the bailout. The Parliament appears to be trying to make up the difference in part by shifting the burden to large account holders.

Cyprus Finance Minister Michael Sarris returned empty handed from Russia after the Russians ruled  out helping until after a deal is struck with European Union. Yesterday, German Chancellor Angela Merkel rejected the proposal to nationalize pension funds and insisting that depositors, especially large savings accounts, be taxed to raise the needed €5.8 billion of the €10 billion bailout deal. Part of the reason for the refusal to accept nationalization of pensions as part of the deal is that Germany did just that to finance both world wars. Germans also face an election in six months and have been reluctant to give up on the bank levy since it protects them from accusations of using European taxpayers money to bail out big Russian investors in Cyprus.

In a nut shell, Cyprus got into this mess because the country’s banks were using Russian deposits to buy Greek bonds to help forestall the collapse of the Greek banks. The Greek bonds went bad, and the Cypriot banks lost a bundle. No good deed goes unpunished.

So where is Cyprus now? At this time, the Parliament is going over a series of bills that would consolidate its ailing banks and the creation of a fund that pools state and church assets, i.e. real estate and pensions, against which they would issue bonds. The deputy leader of he ruling Democratic Rally party, Averof Neophytou, cleared the way for the reconsideration of tax levy on savings accounts which had been flatly reject ted on Tuesday.

The other monkey wrench in all of this is Turkey’s challenge of the any move by Cyprus to speed up offshore natural gas exploration as a way of attracting desperately needed investment to save the economy.  

“This resource belongs to two communities and the future of this resource can’t be subject to the will of southern Cyprus alone. (We) may act against such initiatives if necessary,” one of the Turkish officials told Reuters.

“The exclusive use of this resource … by Southern Cyprus is out of question … and unacceptable.”

Cyprus has been divided between the Greek Cypriot south and Turkish north since a Greek coup d’etat followed by a Turkish army invasion in 1974. Efforts to reunite the island have repeatedly failed and Turkey is the only nation to recognise the self-declared Turkish Republic of Northern Cyprus.

At the Washington Post‘s “Wonkblog”, Dylan Matthews predicted two possible scenarios if Cyprus accepts the EU bailout terms:

What’s the best case scenario from a bailout?

The best we can hope for is that Cyprus takes the hit, gets some money, recapitalizes its banks, and recovers from there. It had a fairly conservative banking sector before the crisis, with deposits far outstripping loans, and its government was actually running surpluses, so it doesn’t have to engage in the kinds of fundamental structural reforms that appear necessary in Greece. So if the Greek losses were just a temporary shock, the rescue money should get the country back on its feet.

And the worst-case scenario?

The worst-case scenario under a plan with a haircut is that the plan triggers a run on banks not just in Cyprus (that appears to already be happening) but in other vulnerable countries like Spain and Italy as customers worry that the E.U. will try to impose similar conditions there. That would exacerbate an already bad situation as it would increase bank shortfalls; fewer deposits, after all, mean a worse deposit-to-liability ratio. Those kinds of runs could lead to a continent-wide crisis of the kind observers have been fearing since the euro zone started its slow-motion collapse back in 2009.

However, the failure of the initial haircut plan renders this outcome less likely. It does render a Cypriot exit from the monetary union quite a bit more likely. That would trigger bank runs in Cyprus as people try to get their money out before the Cypriot pound falls dramatically in value relative to the Euro, and could trigger further runs in Spain and Italy. That’s bad for the same reason haircut-inspired bank runs are bad.

Truthfully, it’s all bad and there is no reason for this since as Ezra Klein points out that the solution is to just give Cyprus the money:

Seriously. €15.8 billion ($20.5 billion) is not a lot of money in the scheme of European finance. It is trivially easy for the European Central Bank, or the IMF, or the Federal Reserve, or really any central bank of any consequence to just hand it over. That the troika is already committing €10 billion ($13 billion) is evidence enough. All the troubles in the negotiations are linked to the demand that €5.8 billion ($7.5 billion) come from Cyprus’ own coffers. Dropping that requirement could solve everything.

The Germans will never allow that until they are in the same boat. This is also why the euro will eventually fail.  

Health and Fitness News

Welcome to the Health and Fitness News, a weekly diary which is cross-posted from The Stars Hollow Gazette. It is open for discussion about health related issues including diet, exercise, health and health care issues, as well as, tips on what you can do when there is a medical emergency. Also an opportunity to share and exchange your favorite healthy recipes.

Questions are encouraged and I will answer to the best of my ability. If I can’t, I will try to steer you in the right direction. Naturally, I cannot give individual medical advice for personal health issues. I can give you information about medical conditions and the current treatments available.

You can now find past Health and Fitness News diaries here and on the right hand side of the Front Page.

Cutting Down on the Meat, but Not the Taste

Mushroom Burgers photo 11recipehealth-articleLarge_zps27b76110.jpg

There are many ways to cut down your meat intake and increase your vegetable consumption without becoming a vegetarian. Culinary traditions around the world are filled with dishes in which meat is used sparingly, for flavor and substance, but is not at the center of the plate. Think stir-fries, and some of your favorite pastas that have a little bit of pancetta but are really all about the tomatoes.

Some of America’s biggest food service companies are committed to increasing vegetable consumption, but they don’t want to lose their meat-loving customers, so they are figuring out ways to create dishes with less meat that are still appealing. You may face this challenge in your own family; you want everybody to cut down on meat consumption, but they love their burgers.

Chef Scott Samuel’s Roasted Mushroom Base and Mushroom Burgers

This is the mushroom base that Scott Samuel, a chef instructor at the Culinary Institute of America, uses in conjunction with beef in his burgers. I have cut the amount of olive oil that Scott uses from 1/2 cup to 1/4 cup.

Mushroom and Turkey Burgers

Let’s face it: turkey burgers can be boring. I spiced these up with a Middle Eastern spice blend, called baharat, that is great to have on hand.

Mushroom and Beef Meatballs

The mushroom base renders a flavor that is more vegetal than meaty. The recipe is easy to double and the meatballs freeze well.

Mushroom, Bulgur, Spinach and Turkey Fritters With Yogurt Sauce

These are smaller than burgers and are served without buns, with a pungent garlic sauce.

Rainbow Beef

In this version of a stir-fry classic I am using less beef than a typical recipe would call for and adding in some shiitake mushrooms and extra peppers.

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On This Day In History March 22

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

March 22 is the 81st day of the year (82nd in leap years) in the Gregorian calendar. There are 284 days remaining until the end of the year.

On this day in 1784, the Emerald Buddha is moved with great ceremony to its current place in Wat Phra Kaew, Thailand.

The Emerald Buddha is the palladium of the Kingdom of Thailand, a figurine of the sitting Buddha, made of green jadeite (rather than emerald), clothed in gold, and about 45 cm tall. It is kept in the Temple of the Emerald Buddha (Wat Phra Kaew) on the grounds of the Grand Palace in Bangkok.

According to the legend, the Emerald Buddha was created in India in 43 BC by Nagasena in the city of Pataliputra (today’s Patna). The legends state that after remaining in Pataliputra for three hundred years, it was taken to Sri Lanka to save it from a civil war. In 457, King Anuruth of Burma sent a mission to Ceylon to ask for Buddhist scriptures and the Emerald Buddha, in order to support Buddhism in his country. These requests were granted, but the ship lost its way in a storm during the return voyage and landed in Cambodia. When the Thais captured Angkor Wat in 1432 (following the ravage of the bubonic plague), the Emerald Buddha was taken to Ayutthaya, Kamphaeng Phet, Laos and finally Chiang Rai, where the ruler of the city hid it. Cambodian historians recorded capture of the Buddha statue in their famous Preah Ko Preah Keo legend. However, some art historians describe the Emerald Buddha as belonging to the Chiang Saen Style of the 15th Century AD, which would mean it is actually of Lannathai origin.

Historical sources indicate that the statue surfaced in northern Thailand in the Lannathai kingdom in 1434. One account of its discovery tells that lightning struck a pagoda in a temple in Chiang Rai, after which, something became visible beneath the stucco. The Buddha was dug out, and the people believed the figurine to be made of emerald, hence its name. King Sam Fang Kaen of Lannathai wanted it in his capital, Chiang Mai, but the elephant carrying it insisted, on three separate occasions, on going instead to Lampang. This was taken as a divine sign and the Emerald Buddha stayed in Lampang until 1468, when it was finally moved to Chiang Mai, where it was kept at Wat Chedi Luang.

The Emerald Buddha remained in Chiang Mai until 1552, when it was taken to Luang Prabang, then the capital of the Lao kingdom of Lan Xang. Some years earlier, the crown prince of Lan Xang, Setthathirath, had been invited to occupy the vacant throne of Lannathai. However, Prince Setthathirath also became king of Lan Xang when his father, Photisarath, died. He returned home, taking the revered Buddha figure with him. In 1564, King Setthathirath moved it to his new capital at Vientiane.

In 1779, the Thai General Chao Phraya Chakri put down an insurrection, captured Vientiane and returned the Emerald Buddha to Siam, taking it with him to Thonburi. After he became King Rama I of Thailand, he moved the Emerald Buddha with great ceremony to its current home in Wat Phra Kaew on March 22, 1784. It is now kept in the main building of the temple, the Ubosoth.

The Legacy of the US in Iraq

Cross posted from The Stars Hollow Gazette

Warning: The video below the fold in this article contains very disturbing pictures that may be difficult for many to watch.

It is now ten years since the the United States launched its illegal invasion of Iraq based on a string of lies about non-existent weapons of mass destruction and wild accusations of Sadaam Hussein’s connection to Al Qaeda, Osama bin Laden and 9/11, all for control of Iraq’s oil riches by one evil man, Richard “Dick” Cheney. What the US has left behind is a devastated country:

Ten years ago, Iraqis, even if they had originally opposed them, hoped that the US invasion and occupation would at least bring an end to the suffering they had endured under UN sanctions and other disasters stemming from defeat in the first Gulf War in 1991. Today, people in Baghdad complain that they still live in a permanent state of crisis because of sectarian and criminal violence, pervasive corruption, a broken infrastructure and a dysfunctional government. Many Iraqis say that what they want in 2013 is the same as what they wanted in 2003, which is a visa enabling them to move to another country, where they can get a job.

But even worse, the US left a health care crisis that will last for generations, not just the lack of care and hospitals but a legacy of horrific birth defects and cancer that has been caused by depleted uranium (DU) contamination. DU, along with lead and mercury, was contained in the armor plating and ammunition used in attacks in Iraq and Afghanistan. The high rates of double and triple cancers, as well as miscarriages, still births and bizarre birth defects, in the cities of Basra and Falluja, have been blamed on DU by researchers. A study published in the Bulletin of Environmental Contamination and Toxicology (pdf) that focused on maternity hospitals in the cities of Basra and Fallujah opens with this stunning paragraph:

Between October 1994 and October 1995, the number of birth defects per 1,000 live births in Al Basrah Maternity Hospital was 1.37. In 2003, the number of birth defects in Al Basrah Maternity Hospital was 23 per 1,000 livebirths. Within less than a decade, the occurrence of congenital birth defects increased by an astonishing 17-fold in the same hospital.  A yearly account of the occurrence and types of birth defects, between 2003 and 2011, in Al Basrah Maternity Hospital, was reported. Metal levels in hair, toe-nail, and tooth samples of residents of Al Basrah were also provided. The enamel portion of the deciduous tooth from a child with birth defects from Al Basrah (4.19 lg/g) had nearly three times higher lead than the whole teeth of children living in unimpacted areas. Lead was 1.4 times higher in the tooth enamel of parents of children with birth defects (2,497± 1,400 lg/g, mean±SD) compared to parents of

normal children (1,826± 1,819 lg/g).

The article concludes:

Present knowledge on the effects of prenatal exposure to metals, combined with our results, suggests that the bombardment of Al Basrah and Fallujah may have exacerbated public exposure to metals, possibly culminating in the current epidemic of birth defects. Large-scale epidemiological studies are necessary to identify at-risk populations in Iraq. The recognition that birth defects reported from Iraq are mainly folate-dependent offers possible treatment options to protect at-risk populations.

From Mike Ludwig at Truthout, there are currently over 300 contaminated sites that are in need of decontamination.

In 2012, European researchers visited a scrap metal site in Al Zubayr, an area near Basrah in southern Iraq. A local police officer told them that the site had at one time held military scrap metal from the bloody battles waged during the American invasion. A local guard told the researchers that children had been seen playing on the scrap during that time, and both adults and children had worked disassembling the military leftovers. At one point, the guard said, members of an international organization with equipment and white suits showed up, told guards that the site was very dangerous and “quickly ran off.” [..]

There are between 300 and 365 sites where depleted uranium contamination was identified by Iraqi authorities the years following the 2003 US invasion, with an estimated cleanup cost of $30 million to $45 million, according to a report recently released by IKV Pax Christi. Iraqi authorities are currently cleaning up the sites, mostly located in the Basrah region, and 30 to 35 sites still need to be decontaminated.

The Cyprus Game of Chicken

Cross posted from The Stars Hollow Gazette

Cyrus banks will remain closed until Tuesday as the government of Pres. Nicos Anastasiades struggles to find away to avert a banking failure and withdrawal from the euro.

Crisis talks among the political leadership in Nicosia are set to resume on Thursday after late-night meetings to discuss a “Plan B” broke up on Wednesday without result.

EU officials voiced frustration but little sympathy for an ambitious but now bust banking system that extended itself well beyond the island; Russia, whose citizens have billions to lose in those Cypriot banks, called the EU a “bull in a china shop”. [..]

Finance Minister Michael Sarris extended a stay in Moscow, where Russian officials said he asked for a further 5 billion euros on top of a five-year extension and lower interest on an existing 2.5-billion euro loan from Moscow.

According to Yves Smith at naked capitalism not all of Cyprus’ banks are in the same shape and “the back story is complicated”

It’s key to understand that this crisis was created by the Troika. Cyprus asked for a bailout nine months ago and the deadline is a bond payment this June. And while it has become fashionable to pin the blame for this mess on Cyprus, the backstory is more complicated. From Cyprus.com:

   Not all the banks are in the same condition.

   (a) Cyprus has two money-center type banks: Laiki (Popular) Bank and Bank of Cyprus.

   (b) Laiki was purchased by a Greek vehicle (Marfin Investment Group) backed by Gulf money. Marfin’s purchase of Laiki took Laiki from being a fairly conservative local bank to being highly exposed to Greece. Laiki is definitely insolvent and needs to be restructured.

   (c) Bank of Cyprus has been more conservative vis-a-vis Greece, but still has meaningful exposure. It is conceivable that, given time, Bank of Cyprus could survive.

   (d) Beyond the main two banks, there is Hellenic Bank (a much smaller bank with much less Greek exposure), Cyprus Development Bank (no Greek exposure), the Co-ops (no Greek exposure) and the Cyprus subsidiaries of foreign banks (aka, Russian, English, etc banks), also with no Greek exposure.

   (e) All the local oriented banks (BoC, Laiki, Hellenic, Coops) have exposure to the local real estate market that went through a bubble during the 2000-2009 period. This exposure however is not short-term and could be resolved over the period of years. It is a problem, not a crisis, and is offset by the fact that the two main banks have quasi-monopolistic earnings power locally. Given the time and some financial represssion (a la the United States) and the local issues would be manageable.

In other words, the bank that is the epicenter of the problem was driven into the ditch by foreign buyers. Now admittedly, the local bank supervisors did nothing to stop that, but can you point to a single national bank regulator (ex the Canadians) that put much in the way of constraints on their banks prior to the crisis.

Paul Krugman’s take on this:

Still trying to wrap my head around the Cyprus situation; what makes it so interesting (as in “may you live in interesting times”) is the role of the island as a tax, regulation, and law enforcement haven.

It’s not just about the Russian connection, but that connection is really huge. Here’s another metric: Cyprus is, according to official figures, the largest single foreign direct investor in Russia – this from an economy roughly the same size as metropolitan Scranton PA. What’s that about? The FT explained it a while back: [..]

And a key aspect of the current mess is that the Cypriot government isn’t willing to give up this business. That’s why solutions like converting large deposits into CDs haven’t been on the table; once round-tripping Russians know that they can find their money trapped for long periods, they’ll go find another treasure island.

Stay tuned for more to come.

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On This Day In History March 21

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

March 21 is the 80th day of the year (81st in leap years) in the Gregorian calendar. There are 285 days remaining until the end of the year.

March 21st is the common date of the March equinox (although astronomically the equinox is more likely to fall on March 20 in all but the most easterly longitudes). In astrology, the day of the equinox is the first full day of the sign of Aries. It is also the traditional first day of the astrological year.

On this day in 1804, the Napoleonic Code approved in France.

After four years of debate and planning, French Emperor Napoleon Bonaparte enacts a new legal framework for France, known as the “Napoleonic Code.” The civil code gave post-revolutionary France its first coherent set of laws concerning property, colonial affairs, the family, and individual rights.

In 1800, General Napoleon Bonaparte, as the new dictator of France, began the arduous task of revising France’s outdated and muddled legal system. He established a special commission, led by J.J. Cambaceres, which met more than 80 times to discuss the revolutionary legal revisions, and Napoleon presided over nearly half of these sessions. In March 1804, the Napoleonic Code was finally approved.

The Napoleonic Code, or Code Napoléon (originally, the Code civil des Français), is the French civil code, established under Napoléon I in 1804. The code forbade privileges based on birth, allowed freedom of religion, and specified that government jobs go to the most qualified. It was drafted rapidly by a commission of four eminent jurists and entered into force on March 21, 1804. The Napoleonic Code was not the first legal code to be established in a European country with a civil legal system, it was preceded by the Codex Maximilianeus bavaricus civilis (Bavaria, 1756), the Allgemeines Landrecht (Prussia, 1794) and the West Galician Code, (Galicia, then part of Austria, 1797). It was, however, the first modern legal code to be adopted with a pan-European scope and it strongly influenced the law of many of the countries formed during and after the Napoleonic Wars. The Code, with its stress on clearly written and accessible law, was a major step in replacing the previous patchwork of feudal laws. Historian Robert Holtman regards it as one of the few documents that have influenced the whole world.

Contents of the Code

The preliminary article of the Code established certain important provisions regarding the rule of law. Laws could be applied only if they had been duly promulgated, and only if they had been published officially (including provisions for publishing delays, given the means of communication available at the time); thus no secret laws were authorized. It prohibited ex post facto laws (i.e., laws that apply to events that occurred before them). The code also prohibited judges from refusing justice on grounds of insufficiency of the law-therefore encouraging them to interpret the law. On the other hand, it prohibited judges from passing general judgments of a legislative value (see above).

With regard to family, the Code established the supremacy of the husband with respect to the wife and children; this was the general legal situation in Europe at the time. It did, however, allow divorce on liberal basis compared to other European countries, including divorce by mutual consent.

They Weren’t Wrong; They Lied

Cross posted from The Stars Hollow Gazette

On MSNBC’s the “Last Word, Lawrence O’Donnell looked back at many of the voices who where for and against the invasion of Iraq. He said that those who were advocating for the war got it “wrong.” Well, Lawrence O’Donnell got it wrong because Pres. George W. Bush, Vice Pres. Dick Cheney, Secretary of State Donald Rumsfeld, at the time National Security Advisor Condoleeza Rice and Secretary of State Colin Powell weren’t “wrong,” they lied. They lied to Congress, the press, the world and us.

They knew they were lying. They knew there were no weapons of mass destruction, no nuclear program, no connection to 9/11, Osama bin Laden or Al Qaeda. They exposed a CIA agent and her operation that was tracking Iran’s nuclear program in order to discredit her husband who said there was no evidence of a nuclear program. We will never know what happened to the people who were working with her in that operation.

They have gotten away with the worst war crime of the 21st century and, perhaps, in the history of this country. Shame on them, shame on Congress and the Justice Department for not doing its due diligence and shame on us for not demanding they be held accountable.

I’m not ready to make nice

Economic Justice And Fair Wages

Cross posted from The Stars Hollow Gazette

Last week the House of Representatives killed a proposal that would have raised the minimum wage tp $10.10 an hour over two years. It failed with not one Republican vote in favor and six Democrats voting against it, as well. In an article for the Los Angeles Times, David Horsey says that while both Democratic and Republican politicians express concern for the middle class, they have failed miserably to address the growing class divide in the Unites States.

As politicians in Washington slam one another over competing budget priorities, most avoid facing up to the disturbing question behind all the numbers: Is the American Dream temporarily stalled or permanently kaput? [..]

This is not the country we like to think we are and it is not the country our political leaders are willing to admit they have helped create. Thirty years of catering to Wall Street, big business and the U.S. Chamber of Commerce has not boosted the American economy the way it was meant to do. Yes, the financial industry and giant corporations are awash in wealth, but they are not hiring more workers, they are not paying better pay, they are not enhancing benefits, they are not sharing the wealth. On the contrary, the typical American is working much harder for worse compensation. He or she is paying a bigger share of the healthcare bill and has no pension plan waiting at the end of the line.

This is an all-American crisis bigger than the deficit or the war on terrorism, but no one seems ready to take it on.

Mr. Horsey notes a rundown of the facts about today’s American economy by economics columnist Jon Talton:

• Worker productivity has increased nearly 23% since 2000, but hourly wages rose a pitiful 0.5% in that period.

• Taking a longer view back to 1973, productivity is up 80% between now and then, but pay is up only 11%.

• People at the bottom of the wage scale are earning less now than similar workers in 1979.

• Employees in the middle of the wage scale are getting 6% more than in 1979, but all that increase happened in the 1990s.

• High earners, meanwhile, are making 37% more than back in the 1970s, and the much-talked-about folks in the top 1% have enjoyed a 131% increase in earnings.

In his article, Mr. Talton furthers concludes:

This reality is at complete odds of our self-image as the Land of Opportunity. It is also a change from a previous America. We’ve been losing ground. Some reasons are obvious, others are complex. Many are familiar to readers of this column, and a few are the subject of sharp debate.

Globalization, offshoring and technology have decimated the old blue-collar middle class. The economy has shifted to service jobs that not only tend to pay less but are increasingly part time and temporary. [..]

Whatever the causes, little is being done to correct our trajectory into historic high inequality that is greater than other advanced nations.

Things may have to get worse before change happens. One thing is clear: Our situation is unsustainable and un-American.

Richard Wolff on Fighting for Economic Justice and Fair Wages

Economist Richard Wolff joins Bill to shine light on the disaster left behind in capitalism’s wake, and to discuss the fight for economic justice, including a fair minimum wage. A Professor of Economics Emeritus at the University of Massachusetts, and currently Visiting Professor in the Graduate Program in International Affairs of the New School. [..]

“We have this disparity getting wider and wider between those for whom capitalism continues to deliver the goods by all means, [and] a growing majority in this society facing harder and harder times,” Wolff tells Bill. “And that’s what provokes some of us to begin to say it’s a systemic problem.”

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On This Day In History March 20

Cross posted from The Stars Hollow Gazette

This is your morning Open Thread. Pour your favorite beverage and review the past and comment on the future.

Find the past “On This Day in History” here.

March 20 is the 79th day of the year (80th in leap years) in the Gregorian calendar. There are 286 days remaining until the end of the year.

March 20th is also the usual date of the vernal equinox in the Northern Hemisphere, and the autumnal equinox in the Southern Hemisphere when both day and night are of equal length, therefore it is frequently the date of traditional Iranian holiday Norouz in many countries.

On this day in 1854, Republican Party is founded in Ripon Wisconsin.

The Republican Party emerged in 1854, growing out of a coalition of former Whigs and Free Soil Democrats who mobilized in opposition to the possibility of slavery extending into the new western territories. The new party put forward a vision of modernizing the United States-emphasizing free homesteads to farmers (“free soil”), banking, railroads, and industry. They vigorously argued that free-market labor was superior to slavery and the very foundation of civic virtue and true republicanism, this is the “Free Soil, Free Labor, Free Men” ideology. The Republicans absorbed the previous traditions of its members, most of whom had been Whigs; others had been Democrats or members of third parties (especially the Free Soil Party and the American Party or Know Nothings). Many Democrats who joined up were rewarded with governorships. or seats in the U.S. Senate or House of Representatives. Since its inception, its chief opposition has been the Democratic Party, but the amount of flow back and forth of prominent politicians between the two parties was quite high from 1854 to 1896.

Two small cities of the Yankee diaspora, Ripon, Wisconsin and Jackson, Michigan, claim to be the birthplace of the Republican Party (in other words, meetings held there were some of the first 1854 anti-Nebraska assemblies to call themselves by the name “Republican”). Ripon held the first county convention on March 20, 1854. Jackson held the first statewide convention on July 6, 1854; it declared their new party opposed to the expansion of slavery into new territories and selected a state-wide slate of candidates. The Midwest took the lead in forming state party tickets, while the eastern states lagged a year or so. There were no efforts to organize the party in the South, apart from a few areas adjacent to free states. The party initially had its base in the Northeast and Midwest. The party launched its first national convention in Pittsburgh, Pennsylvania, in February 1856, with its first national nominating convention held in the summer in Philadelphia, Pennsylvania.

John C. Fremont ran as the first Republican nominee for President in 1856, using the political slogan: “Free soil, free labor, free speech, free men, Fremont.” Although Fremont’s bid was unsuccessful, the party showed a strong base. It dominated in New England, New York and the northern Midwest, and had a strong presence in the rest of the North. It had almost no support in the South, where it was roundly denounced in 1856-60 as a divisive force that threatened civil war.

Historians have explored the ethnocultural foundations of the party, along the line that ethnic and religious groups set the moral standards for their members, who then carried those standards into politics. The churches also provided social networks that politicians used to sign up voters. The pietistic churches emphasized the duty of the Christian to purge sin from society. Sin took many forms-alcoholism, polygamy and slavery became special targets for the Republicans. The Yankees, who dominated New England, much of upstate New York, and much of the upper Midwest were the strongest supporters of the new party. This was especially true for the pietistic Congregationalists and Presbyterians among them and (during the war), the Methodists, along with Scandinavian Lutherans. The Quakers were a small tight-knit group that was heavily Republican. The liturgical churches (Roman Catholic, Episcopal, German Lutheran), by contrast, largely rejected the moralism of the Republican Party; most of their adherents voted Democratic.

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