Diet for a New Depression: Pushing on a String (of Spaghetti)

American Express used to have ads which reminded its select card members not to leave home without their American Express Card.

With it, hope and change could be accessed around the globe. The blue square was solid and its centurion ready to protect you no matter where you went or what you did. Now it seems that the blue square is transforming itself into the bricks and mortar of a bank, and the centurion has been fiddled away in the best Roman tradition of hedonistic spending and activity which, alas, cannot sustain the empire.

American Express had its origins in New York in 1850, delivering stocks and bonds and other valuables for banks. Over the years, American Express itself entered the financial business, issuing money orders and then traveler cheques and, in the 1950's, a charge card.

American Express, however, was not a bank, and that important designation actually enhanced its reputation, especially during the Great Depression and the bank holiday which was ordered by President Franklin Roosevelt. While banks in the United States were closed for restructuring, American Express offices worldwide remained open and served as de facto banks for many travelers overseas and even within the United States. As a financial institution it was trusted more than the largest and strongest US bank, and even more than the United States Government, when it came to honoring its obligations and paying cash on demand.

Now, however, Karl Malden, the actor and famous spokesman for American Express during the 1980's, will be able to find a blue box bank soon on any corner.

American Express, the company that survived World War I, the Great Depression and World War II, has transformed itself into a bank holding company. Membership once had its privileges, so went an ad slogan. Now no membership is needed -- just a deposit --or more likely-- a withdrawal slip.

Interestingly, it was the Glass-Steagall Act, passed by Congress in the 1933, that helped American Express stay independent. Chase Bank, it seems, was quietly buying the company, and at one point owned 97% of its outstanding stock. The Glass-Steagall Act was enacted to keep banks from operating non bank companies. The Glass-Steagall Act remained law until Bill Clinton and a Republican majority Congress rescinded it in the 1990's, despite a few lone voices of warning against doing -- so lost like spit in the wind.

Karl Malden shouldn't really look for Blue Box bank buildings anytime soon, though. This is Nero dropping the fiddle when it's too late. American Express needs access to the US Treasury, like nearly every other company large and larger today. Its paper is now only as good as the full faith and credit of the United States of America. Many are wondering how deep Uncle Sam's pockets are. Certainly they are wondering at Circuit City. We are wondering hunkered down at home, our American Express Cards slotted in our increasingly thin and hocked wallets.

Meanwhile, all the Kings banks and all the President and President-elect's men and woman can't restore confidence. Without confidence, as a 1930's saying goes, they are all "pushing on a string".

I'm suggesting that instead of going out tonight for dinner you might want to cook up some spaghetti. Then you too can push on a string, like our political and financial leaders. I have just the recipe. It's from The World's Modern Cook Book and Kitchen Guide for the Busy Woman. It belonged to my Great Aunt Helen, who was a young woman when the book was published in 1932. She starved (nearly) through the Great Depression, and was forever making up for it by stealing food in a plastic lined purse from local buffets well into her old age.

Spaghetti With Meat Sauce:1 Small Package Spaghetti, 1/4 Clove of Garlic, 2 Tablespoons Butter, 1lb of Chopped Beef, 1/2 Cup Cooking Wine or Orange Juice, 1Cup Soup Stock, 1/2Cup Chopped Carrot, 1/2 Cup Chopped Celery, 1/2 Bay Leaf, 1 Onion.

Boil the spaghetti in boiling salted water for 20 minutes. Serve with the following sauce: Chop the onion and the garlic. Brown in butter. Add the chopped beef. Frown and add the wine or orange juice, soup stock, carrot, celery, bay leaf, salt and pepper. Cook one hour over a very slow flame. Add more soup stock if the liquid cooks away. Press through a sieve. Pour over the hot spaghetti. Pass grated Parmesan cheese with this at the table. Serves 4.

If you see an old guy driving around looking lost it could be Karl Malden. He was born in 1912, and he is still alive. He's seen this type of economy before, so be sure to invite him in for a plate of spaghetti. He won't find the Blue Box Bank on the corner. Nobody will.

While you're at it, maybe spare a plate for the tired centurion, too.