The Bland-Allison Act of 1878 was a compromise between the two groups. What did it do? What happened to the price of silver?
Treasury to purchase between $2-4 million of silver per month at market price.
Price of silver continues to fall, despite this. Supply increases more than demand, so prices fell.
Price of silver continues to fall, despite this. Supply increases more than demand, so prices fell.
What did the Sherman Silver Purchase Act of 1890 do? Where did it fail?
Treasury to buy 4.5 million ounces of silver at market price (per month). The seller receives Treasury notes that are legal tender and redeemable for gold or silver at the discretion of the Treasury. The treasury tended to redeem in gold b/c they wanted to maintain a gold standard.
Silver prices continued to fall. Since the treasury tended to pay out in gold, gold reserves fell. They were close to being forced to suspend payment in specie for al paper money, which would be leaving the gold standard, unless something happened. This caused the act to get repealed by Grover Cleveland.
Silver prices continued to fall. Since the treasury tended to pay out in gold, gold reserves fell. They were close to being forced to suspend payment in specie for al paper money, which would be leaving the gold standard, unless something happened. This caused the act to get repealed by Grover Cleveland.
[WOZ] Explain the Wicked Witch of the West, her Golden Cap & her pursuit of the silver shoes.
WWoW = McKinley
Hanna told McKinley to go west and sit on his front porch and give speeches to make him look like a down to earth guy. This is why he is the witch of the WEST.
Golden Cap? The source of SMA power, the gold standard. The source of the WWoW's power. If Dorothy loses even one silver shoe, she (Dorothy) loses all of her power. Illusion to wanting to remove Bimetallic standard.
The Republican rhetoric was "We support Bimetallic standard, but we need support from other countries." Populists realized this wasn't sincere.
Hanna told McKinley to go west and sit on his front porch and give speeches to make him look like a down to earth guy. This is why he is the witch of the WEST.
Golden Cap? The source of SMA power, the gold standard. The source of the WWoW's power. If Dorothy loses even one silver shoe, she (Dorothy) loses all of her power. Illusion to wanting to remove Bimetallic standard.
The Republican rhetoric was "We support Bimetallic standard, but we need support from other countries." Populists realized this wasn't sincere.
[WOZ] Explain The Wizard of Oz and his initial response to Dorothy and friends' requests.
Wizard of Oz = Marcus Alonzo Hanna --> campaign director for McKinley
Hanna was very rich and the chairman of the Republican National Committee. He was the brains behind McKinley's campaign.
Wo Oz says to kill the Wicked Witch of the West and he will help.
Hanna was very rich and the chairman of the Republican National Committee. He was the brains behind McKinley's campaign.
Wo Oz says to kill the Wicked Witch of the West and he will help.
What did Bryan say in his Cross of Gold speech?
The Common man wants bimetallism while the idle wealthy want only the gold standard. While Republicans say they want bimetallism, they are lying because if bimetallism is a good thing, then the US should adopt it and other countries would follow suit.
Rich getting richer/ poor poorer? Who says no? Why (3 reasons)?
Gene Smiley
1) tax rates were decreasing from the wealthy
2) WWI put a slow on increasing inequality of income
3) sometimes income is not a great measure of standards of living or inequality; most people improved their standards of living without significant increase in income (credit)
1) tax rates were decreasing from the wealthy
2) WWI put a slow on increasing inequality of income
3) sometimes income is not a great measure of standards of living or inequality; most people improved their standards of living without significant increase in income (credit)
Fiscal Policy - WWI saw high levels of taxes. What did the R want to do about it (2 things)? What about the Democrats (lower taxes for: [2 things])? Whose fiscal policy won? Was it successful?
Republicans - lower tax levels to:
1) encourage savings
2) rich would invest in taxable assets instead of tax free municipal bonds
Democrats - lower taxes for:
1) low income families
2) individuals and corporations
Democrats won. It was very successful. Surplus budget.
1) encourage savings
2) rich would invest in taxable assets instead of tax free municipal bonds
Democrats - lower taxes for:
1) low income families
2) individuals and corporations
Democrats won. It was very successful. Surplus budget.
What were some general Fed policies during the 20s? (4)
1) let the weak bank fail - mostly rural banks
2) attempt to end speculation in stock markets - fewer call loans asked of New York banks, but other banks took over.
3) Increase the discount rate 4.5-5.5% - showed intent to limit credit
4) set margin requirements on investments - the amount of money you must put up front to make an investment
2) attempt to end speculation in stock markets - fewer call loans asked of New York banks, but other banks took over.
3) Increase the discount rate 4.5-5.5% - showed intent to limit credit
4) set margin requirements on investments - the amount of money you must put up front to make an investment
What were the two major world problems at the time?
1) German forced to pay for WWI damages to Allied forces
-put a large strain on German economy
-Hyperinflation and unable to make payment schedule
-US attempted to give them large loan to stabilize the economy through the Dawes Plan
-Young Plan reduced the size of payments
2) Return to the Gold Standard
-would help fix exchange rates and prevent inflation
-Britain was a fan b/c it would return them to pre-war financial dominance; actually backfired since Pound was over-valued at the mint (fucked them over)
-US could have helped if they allowed the gold into the US
-this would have increased US price levels
-chose to "sterilize" or stop the gold inflow
-US did not take into account international backlash
-put a large strain on German economy
-Hyperinflation and unable to make payment schedule
-US attempted to give them large loan to stabilize the economy through the Dawes Plan
-Young Plan reduced the size of payments
2) Return to the Gold Standard
-would help fix exchange rates and prevent inflation
-Britain was a fan b/c it would return them to pre-war financial dominance; actually backfired since Pound was over-valued at the mint (fucked them over)
-US could have helped if they allowed the gold into the US
-this would have increased US price levels
-chose to "sterilize" or stop the gold inflow
-US did not take into account international backlash
Flashcard set info:
Author: savhighsmith
Main topic: Economics
Topic: History of Economics
School / Univ.: UGA
City: Athens
Published: 15.11.2010
Tags: Moore, 1870s-1930
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