As most of us head into a long weekend to spend with our families during Thanksgiving, I’d like to take a look at the Mayflower Compact. This succinct document established that upon landfall, government would be established in a democratic fashion for the good of the community. The success of the Pilgrims serves as a great lesson on placing the interests of others above self-interests.
The entire text of the Compact is as follows:
Having undertaken, for the glory of God and advancement of the Christian faith and honor of our King and country, a voyage to plant the first colony in the northern parts of Virginia, do these present solemnly and mutually in the presence of God and one of another, covenant and combine ourselves together into a civil body politic, for our better ordering and preservation, and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute and frame such just and equal laws, ordinances, acts, constitutions and offices, from time to time, as shall be thought most meet and convenient for the general good of the colony unto which we promise all due submission and obedience.
This was written as landfall was imminent and the passengers, who were not completely unified in cause (In addition to the Pilgrims, the passengers were made up of recruited farmers, adventurers, and crew of the ship.), were still facing questions of who was in charge, how leadership would be established and structured, and how decisions for survival would be made. With a small group coming from a society where divine right was often the basis of rule, it is fairly remarkable that everyone aboard the Mayflower would be willing to submit to such a system. In his book, Mayflower, Nathaniel Hilbrick says the following,
The Mayflower Compact represented a remarkable act of coolheaded and pragmatic resolve. They were bound for a place about which they knew essentially nothing. It was almost winter. They were without sufficient supplies of food. Some of them were sick and two had already died. Still others were clamoring for a rebellion that would have meant the almost instantaneous collapse of their settlement and, most likely, their deaths. The [Pilgrims] might have looked to their military officer, Miles Standish, and ordered him to subdue the rebels. Instead, they put pen to paper and created a document that ranks with the Declaration of Independence and the U.S. Constitution as a seminal American text.
The story of how the Pilgrims overcame much in their new home and the story of the first Thanksgiving is well known, and it would not have been possible if the various factions had tried to control the new colony according to their individual visions. This idea became the American idea as the U.S. became the shining example of representative government, with those representatives being the fiduciaries to the American people.
So, as you reflect this holiday on what you have to be thankful for, remember the story of the Pilgrims and the commitment they made to creating a higher standard to hold themselves to, rather than to look for the greatest opportunity for personal gain. If the entire investment industry were to embrace the fiduciary process, we would see less examples of suspect motivation, increased trust from investors and regulators, and a healthier investment environment for all.
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