What We Can Learn From One Of Our Greatest Entrepreneurs.

BUSINESSMAN, POLITICIAN & FARMER

WASHINGTON’S ENTREPRENEURIAL EXAMPLE

I have always loved history and trying to put my self inside the shoes of those early Americans to see the world from their perspective—and what we can take away to apply today. In the coming months—I’ll be posting various blogs about historical Americans to give us a sense of life in their time—and what we can learn for our lives. I don’t believe in “puff” pieces—we get enough of that from the media today—but something of real interest that we can learn from and apply in our lives. Several weeks ago I watched a PBS history of Lady Diana Spencer’s family.

The Spencer name goes back 500 years in England—and it was her great-great-great grandfather that helped the family of a needy friend, Lawrence Washington—by letting his family stay in one of their homes. Lawrence Washingtons’ heirs came to the new colonies in Virginia—and, the rest is history. By all accounts—George Washington and his wife, Martha Custis were extraordinary people. Not just for what they did—but who they were.

Their character stands as tall as their accomplishments. It’s well-known that Washington inherited more than 2000 acres of tobacco when he married Martha Custis. I’d like to repost the following from FoxNews this past February—concerning the business dealings of George Washington, one of the country’s earliest business innovators and large-scale entrepreneurs:

During a time period of America’s existence as British colony and then a young nation—when communication and transportation faced challenges, to put it mildly—this businessman built an enterprise with international reach. 

He built a mill that ground 278,000 pounds of branded flour annually that was shipped throughout America and, unusually during colonial times, exported to Europe. And in the 1790s, late in his life, he built one of the new nation’s largest whiskey distilleries.

Washington’s lifelong entrepreneurship sheds new light on his fight for liberty.

Don’t think you’ve heard of him? Well, you might know him from some of his political and military achievements. As commander of the Continental Army during the Revolutionary War, he led the nascent American nation to a hard-fought victory for independence. Then, a few years later, he became the new nation’s first president.

That’s right, this entrepreneur was none other than George Washington. Had he never led the Continental Army to victory over the British or become president, he would still have had the distinction  of being one of America’s most successful early business leaders. So why is there so much about him that isn’t widely known?

For many Americans, George Washington is just the face on Mount Rushmore and the one-dollar bill. People revere him but often don’t know how to relate to him. But now, some pioneering scholars are documenting Washington’s life’s work as an enthralling story of early American entrepreneurship.

In the 2006 biography, “The Unexpected George Washington,” historian Harlow Giles Unger calls Washington “one of America’s leading entrepreneurs” and chronicles Washington’s transformation of Mount Vernon from a sleepy tobacco farm into an early industrial village.

In this challenging time for free enterprise, Washington’s business, in addition to his political, biography should be seen as emblematic of the American Dream. Washington’s background wasn’t exactly poor, but he was not as wealthy as many of his contemporaries among the Founders. His father died when he was 11, and the family lacked money to give him a formal education.

After fighting with distinction in the French and Indian War, Washington began tending to the Mount Vernon farm he had inherited from his older brother Lawrence. Compared to the many sprawling Virginia estates of the time, the 2,000-acre Mount Vernon was relatively undistinguished when Washington acquired it. Although Washington received a boost in wealth when he married the widow Martha Custis, running a productive farm against the backdrop of British trade restrictions and taxes, as well as nature’s unpredictability, was not an easy task.

Washington began buying the land around Mount Vernon, building a beautiful homestead, and pioneering modern agricultural practices such as crop rotation. 

His first step was to abandon the most common cash crop of his native Virginia: tobacco. Washington worried that that the tobacco crop was hurting Mount Vernon’s soil and saw the need  to diversify to avoid “unprofitable returns,” as he noted in 1765.

Washington chose wheat as his main cash crop, and, pioneering the integration of related enterprises, he became a manufacturer of two products from his crop: flour and distilled whiskey.

Recently replicated on their original foundations at Mount Vernon Estate and Gardens (with support from the Distilled Spirits Council of the United States), Washington’s gristmill and distillery are architectural wonders that anticipated modern factories. The flour mill is three levels high with two sets of mill stones, including French buhr stones that were used to make the finest quality of flour.

The mill produced about 278,000 pounds of flour per year, branded with the Washington name—similar to a modern branded product—and sold throughout the colonies and exported to England and as far away as Portugal.

The distillery also offers a fascinating example of Washington’s entrepreneurial prowess.

Washington built the distillery in 1797 after retiring from the presidency and returning to Mount Vernon—thus setting the American precedent for voluntarily relinquishing power.

He delegated day-to-day management to James Anderson, a native Scot who knew a thing or two about distilled spirits. The product was made largely from crops grown at Mount Vernon. As former Mount Vernon archaeologist Dennis Pogue notes in his book, “Founding Spirits,” the distillery was soon producing 10,500 gallons of spirits, mostly rye whiskey, annually, making it “one of the largest whiskey distilleries in America.”

Like that of other Founding Fathers, Washington’s career was stained by the evils of slavery, and this extended to his business enterprises. But his correspondence shows that Washington realized this contradiction more than most of the Founders, and he worked tirelessly the last few years of his life to free all of his slaves upon his and Martha’s death. He also made provisions for their education and for the support of the former slave children and elderly.

Washington’s lifelong entrepreneurship sheds new light on his fight for liberty, and his motivation to develop a constitutional structure in which all were free to develop their many talents. It also provides an effective answer to claims like the recent ranting of a law professor in the New York Times that Americans should “give up on the Constitution” because it is not “remotely rational” to listen to “white propertied men who have been dead for two centuries” and “knew nothing of our present situation.”

In fact, Washington knew more about the “present situation” of entrepreneurs frustrated by government hurdles than most legal academics writing for the New York Times could ever “remotely” hope to.

As a historical footnote—it was Washington’s stepson (George Washington Parke Custis) who inherited Mt. Vernon and the accompanying acreage that contained Arlington House—which he later let Union soldiers use as a temporary hospital and eventually a burial ground for Civil War soldiers. Today it is Arlington National Cemetery. Also of note—George Washington’s stepson’s daughter (Mary Anna Randolph Custis) married another military man, Robert E. Lee.

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John Berlau is senior fellow for finance and access to capital at the Competitive Enterprise Institute.