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THE SOUTH AS IT WAS
By Franklin Sanders
In Brazil there dwells a remote tribe of Indians who all share a peculiar
mutation. Within the mystery of their optic nerves, all sensation is
transmitted to their brains upside down. Oddly enough, it doesn't
seem to bother them. But then, that's probably not odd at all, because how
would they know they are seeing the world upside down? They've never seen
it right side up, so they can't tell the difference.
Unlike those Indians, we live in a world turned upside down. Like
them, we are accustomed to viewing the world upside down -- so accustomed,
in fact, that we can hardly imagine what the world would look like right
side up.
What did the world look like in the South of 1860, when it was right side
up?
And how do we turn a world upside down back right side up?
Or if we don't yet have enough leverage to turn the whole world right side
up, then how can we lead upright lives in an upside down world?
What did the South look like before the Revolution that we call the War
Between the States? Let’s look at economics & business, occupations, the
financial system, women and education, and slavery.
ECONOMICS & BUSINESS
It is almost impossible for us to envision the economic freedom that reigned
in the Old South. From the individual's standpoint, there was near complete
freedom of entry into every market.
There was, for example no license necessary to work as a Barber,
Hairdresser, Carpenter, Plumber, Doctor, Undertaker, Engineer, Teacher, or
any other calling you might name. Most callings were trained by
apprenticeship, or as they like to say today, as if it were some new
discovery to common-sense-challenged educrats, "hands on experience." There
were no state-backed unions and cartels, from the NEA to the Board of
Cosmetology.
Before entering the practice of a calling, no particular course of education
was required. Of course, that has it downside as well. Suppose you sat
down in the chair of a barber who had never shaved anyone before and had a
nervous twitch? Who would you call when he slit your throat? Just think
about what that implies for developing and practising individual
responsibility, self-restraint, discretion.
There was absolutely minimal government interference in the economy. As a
practical matter, there was no regulation, unless, for example, in Tennessee
you wanted to exhibit a sideshow or circus. Think about what that means. If
you grew cabbages, there was no National Board of Cabbage Marketers to tell
you how to do it and when you could do it and what you could charge. It was
just cabbage anarchy, from the Potomac to the Red River.
No regulation meant that the government couldn't tell you how much water
your toilet could use when it flushed, or how long to cook your hamburgers.
Shoot, that's probably the reason most of the people in the South and
the rest of the country used outhouses and ate raw meat.
In fact, about the only contact most people had with the Federal
government was through the US Post Office. There was
·
no Veteran's Administration to loan money and fix flats,
· no
GSEs like Ginnie Mae and Freddie Mac to float mortgages,
· no
Small Business Administration to loan money to the overlooked and
underfunded,
·
no Agriculture Department to destroy agriculture,
· no
Department of Commerce to tie up commerce, no Department of Defence to wage
war,
· no
Department of Health & Human Services to make you sick at your stomach,
·
no FAA, no IRS, no EPA or FCC.
There wasn't even a Department of Transportation or a Department of Energy.
About the only thing regulated was banking, because it was
recognised as a danger to the public good and stability. Kentucky and
Alabama even had state banks. Throughout the early 1800s wild issues of
unbacked bank notes regularly caused havoc and economic hardship. The South
in particular had been victimised by booming land speculations financed by
wildcat banks. Southerners recognised that to allow the banking system too
much room would be to allow it to take over the economic life of the
commonwealth.
And of course, they were right, as our situation today proves. Today a
banking cartel holds the nation's economic life by the throat. It was
organised in embryo by the Greenback Act of 1862 and the National Banking
Act of 1863 in the north and was brought to maturity in the Federal Reserve
Act of 1913. None of us are immune from the periodic terrors it creates
through its manipulated booms and busts. As a practical matter, the banking
system, business, and civil government are one and the same fascist
creature. With the ascendancy of the banking cartel, the web of debt
financing has enmeshed the lives of most Americans. And of course, the
cartel has forced us to remove our constitutional and statutory limits on
usury that once protected the poor and unwary from the usurer.
Can you imagine this: the people of the South before the War by and large
did not borrow money to live? Their currency was not created out of thin
air by a monopoly, but had real value all its own? They just had to tough
it out with the guidance of almighty Alan Greenspan.
A NATION OF FARMERS
In 1860 the Southern people's occupation was overwhelmingly farming.
Eighty-five percent of the population of the Greater South lived on farms.
By 1970 only 37% were classed as "rural," and by 1998 that had dropped to
25%.
I don't have the figures for the South alone, but in 1860 there were
2,044,000 American farms averaging 199 acres. By contrast, in 1997, there
were 1,912,000 farms, after peaking at 6,812,000 in 1935. The reduction, by
the way, was the favour of your Yankee government's conscious policy to
reduce the number of
farms, increase their size, and concentrate their ownership. They were
successful in changing the size, too. The average farm in 1997 had 487
acres.
In 1880 (admittedly 20 years after the war but still representative), 43.8%
of the people worked on farms; in 1990, 75.2% of the population was urban,
24.8% rural, and of course not all country-dwellers worked on farms.
In 1998, farm operators and managers, 'other agricultural and related
occupations', and farm workers totalled 4,193,000, or 8% out of total
employed, or 8%. Out of the whole population, all farm occupations totalled
only 1.55%.
In the South of 1860 there were as yet very few corporations. The
corporation as we know it - the artificial juridical creature with limited
liability for its owners and perpetual life - had only recently been born.
A series of developments and court cases, culminating in Bank of Augusta
v. Earle (1838) had only begun to change the structure of Southern life
and business.
In the old South there existed an understanding of economic activity
wholly unlike ours. Where we focus on marketing, trading, and
manipulation, the people of the old South focussed on production and
self-sufficiency. Wealth was measured by real property, land, not stocks,
bonds, and IRAs. The Southerner of 1860 could not imagine our world today
where business, finance, and government are one monstrous Siamese triplet.
I began to understand this when I came across Article II, Section 28 of the
Tennessee constitution. "The Legislature shall have power to tax merchants,
peddlers, and privileges." I knew this came from the 1834 constitution, but
wasn't sure why the power to tax should be restricted to just these three.
Privileges
I understood to be special franchises, like a corporation, that the
legislature creates and confers. It stands to reason that the commonwealth
should also have some benefit from its own creation in the form of a tax.
Peddlers
I later learned came from outside the community to trade inside the
community. Having no roots or ties within the community, they were viewed
as a nuisance that had to be made answerable to the local community,
controlled and reduced by a tax.
But merchants I didn't grasp until I came across a passage in
Dabney's Defence of Virginia & the South. Before abolition, Dabney
says, Northerners had argued that the slave system was uneconomical because
it suppressed local trade by merchants. To this the Yankee pointed with
"undoubting elation, as proof of the vastly superior wealth and productive
activity of the North. But in fact, he was a fool; he mistook what was a
villainous, eating ulcer upon the public wealth of the North, and on the
true prosperity of the people, for a spring of profits."
On the contrary, Dabney explains, the relatively smaller number of local
merchants in the South did not signify less wealth or prosperity, but
more wealth, conferred by a system of practical self-sufficiency
that did not encourage or need parasitical middlemen. These surplus traders
filled no genuine marketing need for producers. On they contrary, they only
increased costs to consumers for nothing more than "vain trafficking".
"Now this narrow trafficker, whose only heaven was buying and selling,
very naturally jumped to the conclusion, that the South was so much
poorer than the North, as she exhibited less local trade. Whereas in
fact, she was just so much richer. ...
"The
local merchant, thus unnecessarily invited in, sucks a greedy profit; a
vain show of trading activity is made in the community; and all the really
producing classes are made actually poorer; while this unproductive
consumer, the unnecessary retail trader, congratulates himself on his
mischievous prosperity [emphasis added].
"[When] the advocate of the hireling system attempts to reply to this, by
saying that his system has opened a place for an additional branch of
industry, that of enlarged traffic[king], he is preposterous. The answer
is, that the additional industry is a loss; it is unproductive. As
reasonably might one argue that crime [promotes] public prosperity, by
opening up a new branch of remunerative industry, -- that of police and
jailers, a well paid class!"
"But sensible men ever prefer facts to speculations - the language of
experience to that of theoretical assertion. ... By the census of 1860,
while the population of the Free States was not quite 19 millions, their
total of assessed values, real and personal, was $6,541,000,000: being $346
to each soul. The free white population of the South was a little more than
eight and a quarter millions, and our total of assessed values was
$5,465,808,000: being $660 to each soul, nearly double the wealth of the
North. But if the four millions of Africans in the South be added, our
people still have $447 dollar of value for each soul, black and white."
Dabney's point, not surprising from a member of an agrarian society,
is that the middlemen who handle the farmer's produce are both too numerous
and too rapacious in the Northern commercial system. Surprising and
persuasive, however, are the statistics that he adduces. These plainly show
that, measuring by assessed property value, the South was nearly 30% richer
(29.2%) per capita than the North. Somehow, without a plethora of merchants,
the South's wealth had outpaced the North's.
Today, of course, that commercial system rules supreme. The State of
Tennessee has thrown aside these limitations on taxation by declaring
everything but breathing a "privilege," and taxes everything else besides.
The farmer's well-founded resentment has been co-opted or annihilated. The
commercial system of Government-Business partnership has reduced his
independent numbers to a mere handful clinging to the land, or buys off the
rest with direct bribes called "farm subsidies."
FINANCES
In 1860 every educated Southerner could carry on an intelligent discussion
about monetary science, and why not? Since the country's founding monetary
issues had been the steady diet of politics. Compare that to today, when
the money manipulators, in a coup that nearly outmatches all their others,
has managed to take that discussion completely off the table and rule it
as their own peculiar province.
In large areas of the South the people didn't even use government
money. The federal government had been slow to supply silver coinage,
so in many areas the old Spanish piezas de ocho series - two
bits, four bits, six bits, a dollar - still circulated alongside federal
silver coin.
The Carolina and Georgia gold rushes of the 1830s had attracted Templeton
Reid to north Georgia and the German father & son, Christopher and August
Bechtler to Rutherford County, North Carolina. From 1830 to 1852 these
skilled metallurgists operated a private mint in Rutherfordton. From 1790
to 1840 Rutherford County North Carolina was the nation's primary source of
gold supply.
By the way, one dollar in 1860 was worth $19.24 in 2002 dollars. What costs
$1,000 today would have cost $51.96 in 1860
(That's from the web-site. By gold calculation with gold today at $400,
$2003$19.35 = 0.048375 troy ounce = one gold dollar).
In 1860 Currency in circulation in the US consisted of
·
$207,305,000 in gold,
·
$21,000,000 in silver, and
·
$207,102,000 in state bank notes = $435 MILLION
That would equal $8.05 billion in Year 2000 dollars, but think about it.
No US currency. No Federal Reserve notes. No one could force you to
take bank notes, much less a check, if you didn't want it. 47.6% gold, 4.8%
silver, and 47.6% state bank notes. And don't forget, the state bank notes
- the banks' liabilities -- had to be backed by something, and that
something was gold and silver. And they maintained a reserve of 35-40%.
In 2001, currency in circulation amounted to $662 billion, one
thousand two hundred sixty-nine times currency in circulation in 1860.
Out of that $662 billion, none was gold and silver. Zero % in gold,
zero % in silver, 100% in Federal Reserve notes (with a scattering of
competing US notes, which the Fed is still busily pulling out of
circulation).
And don't forget, today banks still have to keep a reserve behind their
liabilities - your deposits. Today, however, "reserves" means currency,
which means Federal Reserve IOU nothings, to the tune of - less than 1%.
M1 money supply, - which includes currency outside the US Treasury, Fed
Reserve banks, and the vaults of Depository institutions, travellers checks,
demand deposits, and other checkable deposits - would more closely
approximate currency in circulation in 1860. At the end of April, 2001 it
amounted to $1,281 billion, 2,944 times currency circulating in 1860.
In 1860 were only 1,562 banks in the whole country to serve a population of
31,443,321. In 1998, there were 10,481 banks, down from peak of 30,456 in
1921, nearly halved from 1985. Whoops! Competition appears to have
failed to thrive in the banking industry. Concentration
Bank assets in 1860 were $1,000 million, which in Yr. 2000 dollars would
be $19,244.95 million. ($19 billion)
Compared to 31.4 million population in 1860, bank assets stood at $31.80 per
person. That equals $611.99 in 2002 dollars.
In 1998 insured commercial banks (8,774 institutions) had assets totalling
$5,441 billion ($5.4 trillion) against a population of 271 million, or
assets equal to $20,952.43 per capita in Year 2000 dollars.
So in 140 years, bank assets per capita had grown to 3,562% of their 1860
level.
Now I will admit that the US economy has grown quite a bit in the last 140
years, but financial institutions, that is
·
banks and
·
insurance companies and
·
GSEs &
·
monetary authorities and
·
savings institutions and
·
life insurance and
·
pension funds and
·
mortgage companies and
·
mutual funds and.
·
money market funds and
·
security brokers and
·
all the legion of traffickers in debt and money
have grown quite a bit more.
In 1998, all the assets of those financial institutions totalled $24,537
billion ($24.5 trillion). Against a population of a population of 271
million, that works out to $90,542.44 per head.
If we compare the 1998 per capita assets of all those financial
institutions ($90,542.44) against the 1860 per capita bank assets ($611.99
in Y2002$s), we find they have multiplied 14,794.76%. Apparently, financial
services has been what they call a "growth industry" in the past 140 years.
But so what?
That doesn't prove anything because the US economy has grown so much in the
past century and a half.
Let's compare Gross National Product from 1860 to today. All these
figures are in Year 2000 dollars. From an 1869-1879 average of
$92.30 billion or $2,122.05 per head, GNP had grown in 1998 to $8,859.26
billion, or $32,780.46 per head.
That's an increase from $2,122.05 per head to $32,780.46. In other
words, GNP per capita multiplied by 1,545%.
So while gross national product per capita increased about 15.5 times, bank
assets grew 35.6 times, and assets of the broad financial industry grew 154
times, or about ten times as fast as GNP.
Which brings to mind something Gary North recently wrote.
"Two
generations ago the economist Joseph Schumperter argued that when private
property went predominantly from land to invested capital - fiduciary
property - private property lost its socially binding effects. I think he
was correct. The Nashville Agrarians argued the same thing in 1930, echoing
the Southern apologists of 1850."
And that is the point that I have tried to make with the train of statistics
paraded above.
First, the wealth of the South was primarily in land and the capital
equipment necessary to work the land. Wealth was not held as money or
financial assets, but real assets. And the world has not changed, the
wealth of the world still comes from the things men take the ground.
What has changed is that the producers and workers no longer own, much less
control, it, a small group of financiers does. And they control it by
controlling money they artificially create, ex nihilo. With that
artificially created money they also control politics and government to
maintain and increase their wealth and control.
But if that change of the locus and focus of property from land to financial
assets and manipulation had brought only prosperity and had worked no
unhealthy social change, we would have no cause to complain. Here we see
the wisdom and foresight of our Southern agrarian thinkers since the
American Revolution, who, without having seen the change, understood these
connections. In 1860 Southern society was
cohesive,
stable,
local,
rooted,
familial, and
personal.
Today it is
centrifugal,
volatile,
locationless,
rootless,
atomized, and
impersonal.
Is it so hard to make the jump from money to metaphysics? From land to
love?
To understand that this shift in economic focus has furnished, if not the
sole at least a major, cause of atomisation and isolation
from self and mankind?
Is the etiology of the raging plague the modern world calls "alienation" too
obscure, too well camouflaged to diagnose?
Is it too heretical, to admit that the worship of Mammon poisons the
worshippers?
Or are we simply so accustomed to living in this upside down world that we
can't see that everything is topsy-turvy?
SLAVERY AS IT WAS
We are told that slavery was the worst thing that ever happened to any group
of humans, that Southerners fed their slaves dirt, and when there wasn’t
enough dirt they fed them sand, etc., etc.
But how were slaves really treated? Since Southerners have an interest in
this discussion, let’s go to a reliable northern source. Let’s go
to Nobel Prize winning University of Chicago professor Robert Fogel and
University of Rochester Stanley Engerman in their book, Time on the
Cross: The Economics of American Negro Slavery. We can be sure that
these northern gentlemen would give us the unbiased truth. In fact, Fogel
was awarded the Nobel Prize in economics for his work on this very book.
How did slaves really live? How were they treated.
Economic statistics of course can’t tell the whole story, but they do tell a
lot. Here’s what Fogel and Engerman found out:
·
The myth of slave breeding was just that, a myth. “The evidence put forward
to support the contention of breeding for the market is meagre indeed.”
·
“The belief that the typical slave was poorly fed is without foundation in
fact.” “The average daily diet of slaves was quite substantial. The energy
value of their diet [4,185 calories] exceeded that of freemen in 1879 [3,741
calories] by more than 10%. There was no deficiency in the amount of meat
allotted to slaves.” “The slave diet was not only adequate, it actually
exceeded modern (1964) recommended daily levels of chief nutrients. On
average, slaves exceeded the daily recommended level of proteins by 110
percent, calcium by 20 percent, and iron by 230 percent” and 350% of
recommended Vitamin C.
Slave housing was not crowded by standards of the time. On average there
were 5.2 slaves per house on large plantations, compared to 5.3 persons per
free household in 1860. “[T]he ‘typical’ slave cabin of the late antebellum
·
era probably contained more sleeping space per person than was available
to most of New York City’s workers half a century later.
·
“While the quality of slave medical care was poor by modern standards, there
is no evidence of exploitation in the medical care typically provided for
plantation slaves. … That adequate maintenance of the health of their
slaves was a central objective of most planters is repeatedly emphasised in
instructions to overseers and in other records and correspondence of
planters.”
·
Fewer slave women died due to pregnancy than free women.
·
Infant mortality rate for slaves in 1850 was 183 per thousand before the
first birthday while the infant death rate for southern whites in 1850 was
177 per thousand “virtually the same as the infant death rate of slaves.
·
Although the life expectation of slaves in 1850 was 12 percent below the
average of white Americans, it was well within the range experienced by free
men during the 19th century. …. U.S. slaves had much longer life
expectations that free urban industrial workers in both the United States
and Europe.” Average us white, 1850, 40 years vs. US slave 1850, 36 years.
Italy, 1885, 35 years; Austria 1875, 31 years; Chile 1920, 31 years;
Manchester, England 1850, 24 years; New York, Boston, and Philadelphia 1830,
24 years.
·
Slave owners were very reluctant to break up families. “[B]oth moral
convictions and good business practice generally led planters to encourage
the development of stable nuclear families.”
FAMILY, WOMEN, EDUCATION
Since 1860 society in the South has literally been turned upside down.
Think about it under the headings of family, women, and education.
FAMILY
In 1860 the family was the strong and unchallenged pillar of society.
Divorce usually resulted in social ostracism and until a short time before,
could only be obtained by an act of the legislature. There was no social
security, no Medicare, no welfare. It was the family's duty to take care of
the old and sick, with joy, until the day of their death. To be outside a
family was a kind of death itself. The family in its self-sufficient
household constituted what Dabney called a little commonwealth, so that the
state was a commonwealth of commonwealths.
WOMEN
In 1860 women practically did not work outside the home. Statistics
for 1870 (after the War) show 18% of Southern women in the workforce. By
1998, 60% of American women worked outside the home.
But anyone would be sorely mistaken who thought that working at home
indicated a minor or unimportant role in the world. Because the home
contained the primary locus of most economic activity, the lady of the house
was charged with managing an impressive economic enterprise. Whether on a
plantation or a small farm, she oversaw and took part in every labour from
providing clothing to preparing food to planning the planting, not to
mention raising, teaching, and loving children - a lot of children.
The birth rate in 1860 stood at 44.3 births per thousand women of all
races. By 1998, it has dropped to 14.2, less than a third of its 1860
level. In 1860, married women of all races averaged giving birth to more
than five children. On average Southern women 20 to 44 years old enjoyed
the presence of more than one child under five at home. Obviously,
abortion was not a social problem.
I couldn't find the illegitimacy rate for 1860, but as late as 1960 in the
United States, illegitimate births for all women amounted to only 5.3%. In
1993, 30.5% of all US babies were born out of wedlock, the world's highest
illegitimacy rate (22% for whites, 68% for blacks.) In 1993, 245 of all
American women had borne a child out of wedlock, up from 15% in 1982. In
1992, American women bought 25% of the 418 million condoms sold. Forty-six
percent of American women will have abortions in their lifetimes.
As the performance of these Southern women would show in the next five years
when their men had to leave them for the war, there was no challenge of
courage, labour, and ingenuity they could not meet and overcome. The Gloria
Steinems and Hillary Clintons of our day could put on platform heels and
stretch themselves to their full height and still not reach these women's
shoelaces.
And all of this they accomplished daily without the loss of
femininity. Nor should we falsely infer that their intense femininity -
which still astonishes the whole world today in their daughters -- precluded
their intellectual and cultural development. The multitude of now vanished
female academies
many little towns across the South would testify to that by themselves, but
besides that we have those ladies' literary remains. Whoever has read the
memoirs of a Varina Davis or Mary Boykin Chesnut or Phoebe Pember or
countless others will never be able to account the women of the old South a
batch of simpering, brainless beauties.
Compare - no, better not compare - that Southern womanhood to the fruit of
feminism today. It's unnatural goals abandon womanhood in the name of
womanhood. In the name of exalting women they have only succeeded in abasing
her lower than any time Christian civilisation remembers. Compare the
today's fragmented family , where both parents work, children are exiled to
government school, and their only point of contact is their daily meeting
for nutrition beneath the Golden Arches.
EDUCATION
And think of the wild anarchy across the South in the field of education in
1860. There was no compulsory state education. . No one, least of all any
bureaucrat, could arrest you or take away your children for not sending them
to the state school. Just think of that. Forget every statistic and every
item I have mentioned so far. Forget all that. If I could point to just one
thing which all by itself would make the Old South the unutterable
antithesis to America today, it would be education.
Think of it: no state sponsored education. No compulsory separation of
children from parents. No indoctrination into state religion and state
ideology. No beanie-weenie lunches in school cafeterias that smell like old
milk and bananas.
Of course I could wax long-winded about the quality of the results from the
Old South's educational system and today's state run system, but I won't.
That would be an obvious cheap shot, as anybody who has ever tried Davis or
Thornwell or Lee or Calhoun and then read USA Today can testify.
The educational failure of compulsory state education is too obvious to bear
repeating, but its effects do not stop there. The budget of every state in
the union devotes 40 to 60% of its resources to the education industry.
(Think what they could do with 100%) Who is the largest employer in
Memphis, Tennessee, home to Federal Express and I don't know how many other
giant corporations? It's the school system. Compulsory state education is
actually a gigantic welfare and public works project of the Commercial
System, employing millions of unemployables and keeping young people out of
the workforce.
But all of these objections pale next to the real revolt against nature and
nature's God. Compulsory state education usurps the parent's ordained
authority over children. It violently rends and destroys nature's closest
and most loving relation, next to marriage. Nearly 500 years ago John
Calvin wrote, "[T]he right which parents have over their children is
inviolable, so that they who attempt to overthrow it confound heaven and
earth." Compulsory state education institutionalises this blasphemy,
and asserts for the state a warring claim to godhead.
But then, that is one true and primary cause of all these changes - that
the American nation - and the modern South -- has revolted against the
rule of the Almighty God.
But in the end, it is not fitting that we ourselves judge our Southern
ancestors, for no man can rightly judge his own case. In 1863 an English
officer, Col. Arthur Fremantle visited the Confederate States to see for
himself what her people were like. We have his judgement in his book,
Three Months in the Southern States:
"I have never met a man who was not anxious for the termination of the war;
and I have never met a man, woman, or child who contemplated its termination
as possible without an entire separation from the now detested Yankee. I
have never been asked for alms or a gratuity by any man or woman, black or
white. Every one knew who I was, and all spoke to me with the greatest
confidence. I have rarely heard any person complain of the almost total
ruin which had befallen so many. All are prepared to undergo still greater
sacrifices, -- they contemplate and prepare to receive greater reverses
which it is impossible to avert."
"This war is essentially a war of conquest. If ever a nation did wage such
a war, the North is now engaged, with a determination worthy of a more
hopeful cause, in endeavouring to conquer the South; but the more I think of
all that I have seen in the Confederate States of the devotion of the whole
population, the more I feel inclined to say with General [Leonidas] Polk
- "How can you subjugate such a people as this?" and even supposing
that their extermination were a feasible plan, as some northerners have
suggested, I never can believe that in the nineteenth century the civilised
world will be condemned to witness the destruction of such a gallant race."
To which I can only add, "God save the South!"
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Tennessee League of the South
P.O. Box 94
Lobelville, TN 37097
e-mail:
Chairman@FreeTennessee.org
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