Insuring Against Disasters

Insurance policies go back to the ancient Babylonians and were crucial in the early development of capitalism

ILLUSTRATION: THOMAS FUCHS

Living in a world without insurance, free from all those claim forms and high deductibles, might sound like a little bit of paradise. But the only thing worse than dealing with the insurance industry is trying to conduct business without it. In fact, the basic principle of insurance—pooling risk in order to minimize liability from unforeseen dangers—is one of the things that made modern capitalism possible.

The first merchants to tackle the problem of risk management in a systematic way were the Babylonians. The 18th-century B.C. Code of Hammurabi shows that they used a primitive form of insurance known as “bottomry.” According to the Code, merchants who took high-interest loans tied to shipments of goods could have the loans forgiven if the ship was lost. The practice benefited both traders and their creditors, who charged a premium of up to 30% on such loans.

The Athenians, realizing that bottomry was a far better hedge against disaster than relying on the Oracle of Delphi, subsequently developed the idea into a maritime insurance system. They had professional loan syndicates, official inspections of ships and cargoes, and legal sanctions against code violators.

With the first insurance schemes, however, came the first insurance fraud. One of the oldest known cases comes from Athens in the 3rd century B.C. Two men named Hegestratos and Xenothemis obtained bottomry insurance for a shipment of corn from Syracuse to Athens. Halfway through the journey they attempted to sink the ship, only to have their plan foiled by an alert passenger. Hegestratos jumped (or was thrown) from the ship and drowned. Xenothemis was taken to Athens to meet his punishment.

In Christian Europe, insurance was widely frowned upon as a form of gambling—betting against God. Even after Pope Gregory IX decreed in the 13th century that the premiums charged on bottomry loans were not usury, because of the risk involved, the industry rarely expanded. Innovations came mainly in response to catastrophes: The Great Fire of London in 1666 led to the growth of fire insurance, while the Lisbon earthquake of 1755 did the same for life insurance.

It took the Enlightenment to bring widespread changes in the way Europeans thought about insurance. Probability became subject to numbers and statistics rather than hope and prayer. In addition to his contributions to mathematics, astronomy and physics, Edmond Halley (1656-1742), of Halley’s comet fame, developed the foundations of actuarial science—the mathematical measurement of risk. This helped to create a level playing field for sellers and buyers of insurance. By the end of the 18th century, those who abjured insurance were regarded as stupid rather than pious. Adam Smith declared that to do business without it “was a presumptuous contempt of the risk.”

But insurance only works if it can be trusted in a crisis. For the modern American insurance industry, the deadly San Francisco earthquake of 1906 was a day of reckoning. The devastation resulted in insured losses of $235 million—equivalent to $6.3 billion today. Many American insurers balked, but in Britain, Lloyd’s of London announced that every one of its customers would have their claims paid in full within 30 days. This prompt action saved lives and ensured that business would be able to go on.

And that’s why we pay our premiums: You can’t predict tomorrow, but you can plan for it.

The Invention of Ice Hockey

Canada gave us the modern form of a sport that has been played for centuries around the world

ILLUSTRATION: THOMAS FUCHS

Canadians like to say—and print on mugs and T-shirts—that “Canada is Hockey.” No fewer than five Canadian cities and towns claim to be the birthplace of ice hockey, including Windsor, Nova Scotia, which has an entire museum dedicated to the sport. Canada’s annual Hockey Day, which falls on February 9 this year, features a TV marathon of hockey games. Such is the country’s love for the game that last year’s broadcast was watched by more than 1 in 4 Canadians.

But as with many of humanity’s great advances, no single country or person can take the credit for inventing ice hockey. Stick-and-ball games are as old as civilization itself. The ancient Egyptians were playing a form of field hockey as early as the 21st century B.C., if a mural on a tomb at Beni Hasan, a Middle Kingdom burial site about 120 miles south of Cairo, is anything to go by. The ancient Greeks also played a version of the game, as did the early Christian Ethiopians, the Mesoamerican Teotihuacanos in the Valley of Mexico, and the Daur tribes of Inner Mongolia. And the Scottish and Irish versions of field hockey, known as shinty and hurling respectively, have strong similarities with the modern game.

Taking a ball and stick onto the ice was therefore a fairly obvious innovation, at least in places with snowy winters. The figures may be tiny, but three villagers playing an ice hockey-type game can be seen in the background of Pieter Bruegel the Elder’s 1565 painting “Hunters in the Snow.” There is no such pictorial evidence to show when the Mi’kmaq Indians of Nova Scotia first started hitting a ball on ice, but linguistic clues suggest that their hockey tradition existed before the arrival of European traders in the 16th century. The two cultures then proceeded to influence each other, with the Mi’kmaqs becoming the foremost maker of hockey sticks in the 19th century.

The earliest known use of the word hockey appears in a book, “Juvenile Sports and Pastimes,” written by Richard Johnson in London in 1776. Recently, Charles Darwin became an unlikely contributor to ice hockey history after researchers found a letter in which he reminisced about playing the game as a boy in the 1820s: “I used to be very fond of playing Hocky [sic] on the ice in skates.” On January 8, 1864, the future King Edward VII played ice hockey at Windsor Castle while awaiting the birth of his first child.

As for Canada, apart from really liking the game, what has been its real contribution to ice hockey? The answer is that it created the game we know today, from the official rulebook to the size and shape of the rink to the establishment of the Stanley Cup championship in 1894. The first indoor ice hockey game was played in Montreal in 1875, thereby solving the perennial problem of pucks getting lost. (The rink was natural ice, with Canada’s cold winter supplying the refrigeration.) The game involved two teams of nine players, each with a set position—three more than teams field today—a wooden puck, and a list of rules for fouls and scoring.

In addition to being the first properly organized game, the Montreal match also initiated ice hockey’s other famous tradition: brawling on the ice. In this case, the fighting erupted between the players, spectators and skaters who wanted the ice rink back for free skating. Go Canada!

How Potatoes Conquered the World

It took centuries for the spud to travel from the New World to the Old and back again

For the Wall Street Journal

At the first Thanksgiving dinner, eaten by the Wampanoag Indians and the Pilgrims in 1621, the menu was rather different from what’s served today. For one thing, the pumpkin was roasted, not made into a pie. And there definitely wasn’t a side dish of mashed potatoes.

In fact, the first hundred Thanksgivings were spud-free, since potatoes weren’t grown in North America until 1719, when Scotch-Irish settlers began planting them in New Hampshire. Mashed potatoes were an even later invention. The first recorded recipe for the dish appeared in 1747, in Hannah Glasse’s splendidly titled “The Art of Cookery Made Plain and Easy, Which Far Exceeds Any Thing of the Kind yet Published.”

By then, the potato had been known in Europe for a full two centuries. It was first introduced by the Spanish conquerors of Peru, where the Incas had revered the potato and even invented a natural way of freeze-drying it for storage. Nevertheless, despite its nutritional value and ease of growing, the potato didn’t catch on in Europe. It wasn’t merely foreign and ugly-looking; to wheat-growing farmers it seemed unnatural—possibly even un-Christian, since there is no mention of the potato in the Bible. Outside of Spain, it was generally grown for animal feed.

The change in the potato’s fortunes was largely due to the efforts of a Frenchman named Antoine-Augustin Parmentier (1737-1813). During the Seven Years’ War, he was taken prisoner by the Prussians and forced to live on a diet of potatoes. To his surprise, he stayed relatively healthy. Convinced he had found a solution to famine, Parmentier dedicated his life after the war to popularizing the potato’s nutritional benefits. He even persuaded Marie-Antoinette to wear potato flowers in her hair.

Among the converts to his message were the economist Adam Smith, who realized the potato’s economic potential as a staple food for workers, and Thomas Jefferson, then the U.S. Ambassador to France, who was keen for his new nation to eat well in all senses of the word. Jefferson is credited with introducing Americans to french fries at a White House dinner in 1802.

As Smith predicted, the potato became the fuel for the Industrial Revolution. A study published in 2011 by Nathan Nunn and Nancy Qian in the Quarterly Journal of Economics estimates that up to a quarter of the world’s population growth from 1700 to 1900 can be attributed solely to the introduction of the potato. As Louisa May Alcott observed in “Little Men,” in 1871, “Money is the root of all evil, and yet it is such a useful root that we cannot get on without it any more than we can without potatoes.”

In 1887, two Americans, Jacob Fitzgerald and William H. Silver, patented the first potato ricer, which forced a cooked potato through a cast iron sieve, ending the scourge of lumpy mash. Still, the holy grail of “quick and easy” mashed potatoes remained elusive until the late 1950s. Using the flakes produced by the potato ricer and a new freeze drying method, U.S. government scientists perfected instant mashed potatoes, which only requires the simple step of adding hot water or milk to the mix. The days of peeling, boiling and mashing were now optional, and for millions of cooks, Thanksgiving became a little easier. And that’s something to be thankful for.

 

WSJ Historically Speaking: The Struggle Before #MeToo

Today’s women are not the first to take a public stand against sexual assault and harassment

Rosa Parks in 1955 PHOTO: GETTY IMAGES

Since it began making headlines last year, the #MeToo movement has expanded into a global rallying cry. The campaign has many facets, but its core message is clear: Women who are victims of sexual harassment and assault still face too many obstacles in their quest for justice.

How much harder it was for women in earlier eras is illustrated perfectly by Emperor Constantine’s 326 edict on rape and abduction. While condemning both, the law assumed that all rape victims deserved punishment for their failure to resist more forcefully. The best outcome for the victim was disinheritance from her parents’ estate; the worst, death by burning.

In the Middle Ages, a rape victim was more likely to be blamed than believed, unless she suffered death or dismemberment in the attack. That makes the case of the Englishwoman Isabella Plomet all the more remarkable. In 1292, Plomet went to her doctor Ralph de Worgan to be treated for a leg problem. He made her drink a sleeping drug and then proceeded to rape her while she was unconscious.

It’s likely that Worgan, a respected pillar of local society, had relied for years on the silence of his victims. But Plomet’s eloquence in court undid him: He was found guilty and fined. The case was a landmark in medieval law, broadening the definition of rape to include nonconsent through intoxication.

But prejudice against the victims of sexual assault was slow to change. In Catholic Europe, notions of family honor and female reputation usually meant that victims had to marry their rapists or be classed as ruined. This was the origin of the most famous case of the 17th century. In 1611, Artemisia Gentileschi and her father Orazio brought a suit in a Roman court against her art teacher, Agostino Tassi, for rape.

Although Tassi had a previous criminal record, as a “dishonored” woman it was Gentileschi who had to submit to torture to prove that she was telling the truth. She endured an eight-month trial to see Tassi convicted and temporarily banished from Rome. “Cleared” by her legal victory, Gentileschi refused to let the attack define her or determine the rest of her life. She is now regarded as one of the greatest artists of the Baroque era.

One class of victims who had no voice and no legal recourse were free and enslaved black women in pre-Civil War America. Their stories make grim reading. In 1855, Celia, an 18-year-old slave in Missouri, killed her master when he attempted to rape her. At her trial she insisted—through her lawyers, since she was barred from testifying—that the right to self-defense extended to all women. The court disagreed, and Celia was executed—but not before making a successful prison break and almost escaping.

Change was still far off in 1931, when the 18-year-old Rosa Parks, working as a housekeeper, was pounced on by her white employer. As she later recalled, “He offered me a drink of whiskey, which I promptly and vehemently refused. He moved nearer to me and put his hand on my waist.” She managed to fight him off, and in a larger sense Parks never stopped fighting. She became a criminal investigator for the NAACP, helping black victims of white sexual assault to press charges.

Rosa Parks is often referred to as the “first lady of civil rights,” in recognition of her famous protest on a segregated bus in Montgomery, Alabama in 1955. She should also be remembered as one of the unsung heroines in the long prehistory of #MeToo.