Populism and Free Silver in the 1890s
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Transcript of Populism and Free Silver in the 1890s
Populism and Free Silver in the 1890s
aka: The Wizard of Oz meets Monetary Policy
Get your clicker! Ch 48!
Goals: SWBAT… Identify and
explain basic micro and macro economic ideas
Apply these ideas to explain and analyze the Populist and Free Silver movements of the 1890s
Examine The Wizard of Oz as a Monetary Allegory http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
Our Agenda Today
Economics Basics Late 1800s Monetary Policy Populism and the Wizard of Oz
I understand the economics behind Populism and Free Silver.
1- Strongly disagree 2- Disagree 3- Agree 4- Strongly agree
Intro to Econ: Key Terms Demand, Supply, and Price Fiscal Policy Monetary Policy Money Supply Business Cycle Tariff Recession Inflation and Deflation
http://www.thebluecollarinvestor.com/blog/wp-content/uploads/2008/11/business-cycle-graph-better.jpg
http://priyankaseconomicblog.files.wordpress.com/2009/10/calvin-on-supply-and-demand3.jpg
Intro to Econ What causes prices to go up?
Demand Change vs. Supply Change Inflation vs. Deflation
Economics of the 1890s If Demand goes down…. If Supply goes up…. DEFLATION! Prices go down! What was happening to crop prices in
the late 1800s? Why? What was happening to farm costs
(i.e., mortgages, manuf. goods) in the late 1800s? Why?
I have a better understanding of how supply and demand impact
prices.
1- Strongly disagree 2- Disagree 3- Agree 4- Strongly agree
Economics of the 1890s Very high tariffs (taxes on imports) Agric. prices down (1860s to 1890s)
Depression of 1893
Why did farmers want inflation?
http://www.flickr.com/photos/farlane/3791930988/in/set-72157601329141029/
Economics of the 1890s
Economics of 1890s Is inflation bad? Yes for creditors (i.e., bankers) No for debtors (i.e., farmers) Some inflation is healthy, necessary
Why did farmers want inflation?
http://www.cthistoryonline.org/cdm-cho/cho/journeys/j_life_rural_farm.html
The government should have helped farmers more.
1- Strongly disagree 2- Disagree 3- Agree 4- Strongly agree
Government and EconomyA Short Digression…
Capitalism? Communism? Socialism?
Government and EconomyA Short Digression…
Capitalism? Adam Smith The Wealth of Nations (1776) Laissez Faire, Free Market should
replace Mercantilism Allow for competition to “naturally”
regulate economy
Government and EconomyA Short Digression…
Communism? Karl Marx and Friedrich Engels The Communist Manifesto (1848) Capitalism will collapse, Proletariat
will rise up and overthrow Bourgeoisie Stateless, Classless Total equality
Not quite Lenin or Mao
Government and EconomyA Short Digression…
Socialism? Great variation Parts of W. Europe and N. America
today Government control or regulation of some parts of economy
Schools, healthcare, “natural” monopolies; More worker and consumer protection
Government and Economy How can the government influence
the economy? Fiscal Policy: taxes and/or spending
Monetary Policy: money supply and/or interest rates
Today the Federal Reserve Bank (The FED) is in charge of Monetary Policy
http://www.fotosearch.com/illustration/inflation.html
Government and Economy Traditional Economics? Mercantilism Free Market
Capitalism Wealth of Nations by Adam Smith
(1776) The Government should stay out of
the economy Recessions are good! Reality?
Government and Economy Monetary Policy to stimulate the
economy… Increase the money supply and/or
lower interest rates Risks? Could lead to inflation, but unlikely if in a recession WARNING: The economy is a moving
target!
Government and EconomyRecessions During the 1800s: Panic of 1819 Panic of 1837 Panic of 1857 Panic of 1873 Depression of 1893
(FYI – Great Depression begins in 1929)
Government and EconomyHigh Tariffs During the 1800s: Tariff of 1816 – 15 to 20 percent Tariff of 1824 – Whig Party and Henry Clay Tariff of 1828 – 50 percent Tariff of 1832 – down slightly Tariff of 1857 – Democrats lower tariff Morrill Tariff of 1861 – 47 percent “mongrel” Tariff Act of 1883 McKinley Tariff Act of 1890 Dingley Tariff of 1897 – over 50 percent!(FYI – Hawley-Smoot Tariff of 1930)
Government and EconomyMonetary Policy During the 1800s: It was a mess!
Banks, States, and Federal govt printed money
First Bank of the US (1791-1811) Second Bank of the US (1816-1836)
Federal govt wanted no debt
Government and EconomyMonetary Policy During the 1800s: Mint Act of 1792 unlimited Silver & Gold at 15:1 “Crime of 1873” – govt. stopped
minting silver USA essentially on gold standard in
1879 Sherman Silver Purchase Act (1890)
not enough, and soon repealed
Government and EconomyMonetary Policy During the 1800s: Market value vs. Official value By 1894 Market value was over 30:1
(i.e., 30 silver = 1 gold) Populists wanted govt to resume
minting silver at 16:1FREE SILVER!!
Government and EconomyMonetary Policy During the 1800s: What if Govt minted silver at 16:1 in
1890s? Money Supply?Increase! But gold deposits would go
down Inflation?Not likely since recession
Government and EconomyMonetary Policy During the 1800s: Gresham’s Law named for Sir
Thomas Gresham (1519-1579)
“When a government compulsorily overvalues one type of money and undervalues another, the undervalued money will leave the country or disappear”aka: “Bad money drives out good money”
Government and EconomyMonetary Policy During the 1800s: According to Gresham’s Law, if
Populists get their way, Gold is….
Good Money that will be undervalued and driven out of circulation, perhaps out of the
country
Bankers think silver is “bad”
I have a better understanding of U.S. government monetary
policy of the 1800s.
1- Strongly disagree 2- Disagree 3- Agree 4- Strongly agree
The Rise of Populism
Tariff very high Farmers caught in a debt cycle1869-1896 crop prices down 55
percent! Farmers Revolted and Organized!Granger movement (1860s to 1880s)Farmers Alliance (1880s)People’s Party formed in 1890s
1894 Unemployment over 18 percent
The Election of 1896Republicans endorsed William McKinley High tariffs and gold standard Conservative “sound money” positionDemocrats and Populists endorsed William Jennings Bryan Bimetallic standard (silver & gold) at
16:1 WJB gave “Cross of Gold” speech
The Election of 1896Republicans/McKinley won!Democrats became party of
“progressive” reformPopulist party fades away; many
positions adopted by Democrats
The Election of 1896Free Silver issue disappears: WHY? Gold Discoveries in 1880s and 1890s By 1897 Economy was improving 1900 Gold Standard Act New focus in Imperialism
The Wizard of Oz Book written by
Frank Baum in 1900
Movie in 1939 What’s the story?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Wizard of Oz Story begins in the
West (Kansas) as did Populists
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
Dorothy? Heroine from poor
farm Represents honest,
plucky America Mary Elizabeth Lease?
The Wizard of Oz
Cyclone/Tornado = Free Silver Movement
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
The Land of Oz? The Gold Standard Oz = Gold (ounce)
http://babycreativeblog.files.wordpress.com/2009/10/tornado-4.jpg
http://www.open2.net/blogs/media/blogs/39197167_gold.jpg
The Wizard of Oz
Wicked Witch of the East (WWE)
House lands on and kills
Silver shoes put on Dorothy
http://www.physicsdaily.com/physics/Grover_Clevelandhttp://www.babygadget.net/pics/silver-shoes.jpg
= Eastern business interests, Grover Cleveland
The Wizard of Oz
Yellow Brick Road?
http://www.lonelyplanet.com/maps/north-america/usa/washington-dc/map_of_washington-dc.jpg
= Gold
Emerald City? Washington DC
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
http://www.flickr.com/photos/farlane/3791930988/in/set-72157601329141029/
The Wizard of Oz
Scarecrow needs? Appear brainless,
but smart = western farmers
The Wizard of Oz
Tin Woodman needs?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
http://www.uni.edu/schneidj/webquests/adayinthelife/lotsofworkers.jpg
= industrial workers
Once flesh and blood; needs bigger, kinder heart
The Wizard of Oz
Cowardly Lion needs?
http://www.old-picture.com/american-history-1900-1930s/pictures/Jennings-William-Jennings.jpg
= WJB
Fell asleep in….?
Poppy Fields = Imperialism
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
Stopped fighting for silver
The Wizard of Oz
Travel to Emerald City?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
= Coxey’s march to DC for job in 1894
Emerald Palace? = White House Seven passages &
three flights of stairs? = Crime of ‘73
http://blogs.ancestry.com/circle/wp-content/uploads/2008/08/Coxeys%20Army.bmp http://www.destination360.com/north-america/us/washington-dc/white-
house
The Wizard of Oz
Dorothy and Friends must?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
WWW = McKinleyFate of WWW? Melts with water Farmers in West need
rain to counter drought
Rain = inflationhttp://4.bp.blogspot.com/_RMIeFF2Drjg/Snn9B2F1yNI/AAAAAAAABR8/62cVVZGoBUM/s400/Mckinley.jpg
Kill Wicked Witch of the West
The Wizard of Oz
The Wizard?
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
= Marcus Alonzo Hanna, an advisor to McKinley & head of RNC
www.nndb.com/people/013/000101707/
The Wizard of Oz
Wizard turns out to be ordinary
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html
Gang seeks help from Good Witch of the South
problems are fixed Dorothy uses silver
shoes to return to Kansas http://www.starpulse.com/Movies/Wizard_Of_Oz,_The/gallery/
WIZARDOZ007/
= supporters in South
How did we do? SWBAT… Identify and
explain basic micro and macro economic ideas
Apply these ideas to explain and analyze the Populist and Free Silver movements of the 1890s
Examine The Wizard of Oz as a Monetary Allegory
http://bigpicture.typepad.com/comments/images/2008/07/14/inflation_recession_alligator.jpg
I think the Wizard of Oz accurately reflects the people and issues of
the 1890s. 1- Strongly disagree 2- Disagree 3- Agree 4- Strongly agree
I understand the economics behind Populism and Free Silver.
1- Strongly disagree 2- Disagree 3- Agree 4- Strongly agree
Thanks and have a great
day!
http://thefedorachronicles.com/hollywood/Movies/WizardofOz.html