Which Was A Result Of The Great Depression Quizlet
The stock market crash of October 1929 brought the economic prosperity of the 1920s to a symbolic end. The Great Depression was a worldwide economic crisis that in the United States was marked by widespread unemployment, near halts in industrial production and construction, and an 89 percent decline in stock prices.
Setting The Stage For Financial Modernization
The Monetary Control Act of 1980 required the Fed to price its financial services competitively against private sector providers and to establish reserve requirements for all eligible financial institutions. The act marks the beginning of a period of modern banking industry reforms. Following its passage, interstate banking proliferated, and banks began offering interest-paying accounts and instruments to attract customers from brokerage firms. Barriers to insurance activities, however, proved more difficult to circumvent. Nonetheless, momentum for change was steady, and by 1999 the Gramm-Leach-Bliley Act was passed, in essence, overturning the Glass-Steagall Act of 1933 and allowing banks to offer a menu of financial services, including investment banking and insurance.
Why Did The Pullman Workers Go On Strike
Responding to falling revenue during the economic depression that began in 1893, the Pullman Palace Car Company cut more than 2,000 workers and reduced wages by 25 percent. When it did not also reduce rents and other expenses at Pullman, the company town near Chicago where most Pullman workers lived, many workers and their families faced starvation. A delegation of workers tried to present their grievances to company president George M. Pullman, but he refused to meet with them and ordered them fired. The delegation then voted to strike, and Pullman workers walked off the job on May 11, 1894.
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What Is Most Responsible For Causing Eating Disorders
The exact cause of eating disorders is unknown. As with other mental illnesses, there may be many causes, such as: Genetics and biology. Certain people may have genes that increase their risk of developing eating disorders. Biological factors, such as changes in brain chemicals, may play a role in eating disorders.
S: The Beginning Of Open Market Operations
Following World War I, Benjamin Strong, head of the New York Fed from 1914 to his death in 1928, recognized that gold no longer served as the central factor in controlling credit. Strongs aggressive action to stem a recession in 1923 through a large purchase of government securities gave clear evidence of the power of open market operations to influence the availability of credit in the banking system. During the 1920s, the Fed began using open market operations as a monetary policy tool. During his tenure, Strong also elevated the stature of the Fed by promoting relations with other central banks, especially the Bank of England.
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Tariffs And Monetary Policy
After the 1896 election, McKinley indicated that he would call special session of Congress to address the tariff, and Congressman Dingley began hearings on the bill in December 1896, during the lame duck period of Cleveland’s presidency. While Democrats tended to oppose high tariffs, arguing that they hurt consumers by raising prices, McKinley and other leading Republicans viewed high tariffs as essential to the protection of American businesses against foreign competition. Additionally, the tariff provided nearly half of the government’s revenue, and a rate increase could help put an end to the deficits that the government had experienced in the midst of the Panic of 1893. Before taking office, McKinley also authorized Senator Edward O. Wolcott of Colorado to travel to Europe to discuss the possibility of an international bimetallic agreement. International bimetallism represented a middle course between proponents of free silver and those who favored a gold standard.
Why Dc Is Not Used In Homes
The answer to why DC current is not used in homes goes back to the inherent characteristics of direct currents and their weaknesses compared to Alternating Currents . In fact, AC currents can be easily transmitted over long distances without much loss. They are also safer in direct touch at an equal voltage.
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Other Possible Political Realignments
- 1874 elections
- The 1874 elections saw a resurgence of the Democratic Party. Discontent with the presidency of Ulysses S. Grant and the economic depression known at the time as the Panic of 1873, and the slow return of disillusioned Liberal Republicans from their 1872 third party ticket, all energized the Democrats. The Democrats had not controlled either chamber of Congress since before the War. The realignment meant the Democrats generally controlled the House of Representatives from 1875 to their massive defeat in 1894. Republicans eked out very narrow wins in most of the presidential elections in that period. The Civil Rights Act of 1875, enacted in the lame-duck session of Congress following the 1874 elections, was the last major Reconstruction law, and it was chiefly of symbolic value. The new strength of the Democrats marked the end of Reconstruction legislation. With the end of Reconstruction, the 11 former states of the Confederacy became a dominant-party system known as the Solid South. The tariff and especially monetary policy emerged as the great ideological debates after 1874.
Some debate exists today as to what elections could be considered realigning elections after 1932. Although several candidates have been proposed, there is no widespread agreement:
Who Provided Funding To Build The Fair
New York financiers J. P. Morgan, Cornelius Vanderbilt, and William Waldorf Astor, among others, pledged $15 million to finance the fair if Congress awarded it to New York, while Chicagoans Charles T. Yerkes, Marshall Field, Philip Armour, Gustavus Swift, and Cyrus McCormick, offered to finance a Chicago fair.
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What Happens If You Accidentally Electrocute Yourself
Some electric shocks can have a lasting impact on your health. For example, serious burns can leave permanent scars. And if the electrical current goes through your eyes, you may be left with cataracts. Some shocks can also cause ongoing pain, tingling, numbness, and muscle weakness due to internal injuries.
William Jennings Bryan And The Cross Of Gold
William Jennings Bryan was a politician and speechmaker in the late nineteenth century, and he was particularly well known for his impassioned argument that the country move to a bimetal or silver standard. He received the Democratic presidential nomination in 1896, and, at the nominating convention, he gave his most famous speech. He sought to argue against Republicans who stated that the gold standard was the only way to ensure stability and prosperity for American businesses. In the speech he said:
We say to you that you have made the definition of a business man too limited in its application. The man who is employed for wages is as much a business man as his employer the attorney in a country town is as much a business man as the corporation counsel in a great metropolis the merchant at the cross-roads store is as much a business man as the merchant of New York the farmer who goes forth in the morning and toils all day, who begins in spring and toils all summer, and who by the application of brain and muscle to the natural resources of the country creates wealth, is as much a business man as the man who goes upon the Board of Trade and bets upon the price of grain . . . We come to speak of this broader class of business men.
The speech was an enormous success and played a role in convincing the Populist Party that he was the candidate for them.
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What Role Did Eugene V Debs Play In The Pullman Strike
Eugene V. Debs was the president of the American Railway Union , which represented about one-third of the Pullman workers and which had concluded a successful strike against the Great Northern Railway Company in April 1894. When the ARU voted to support the Pullman workers, the Pullman Strike became a national action, and Debs became its de facto leader. Although he cautioned against the violence that broke out, Debs received a six-month prison sentence for contempt of court that was upheld by the U.S. Supreme Court in In re Debs . During his incarceration he embraced socialism.
Pullman Strike, , in U.S. history, widespread railroadstrike and boycott that severely disrupted rail traffic in the Midwest of the United States in JuneJuly 1894. The federal governments response to the unrest marked the first time that an injunction was used to break a strike. Amid the crisis, on June 28 Pres. Grover Cleveland and Congress created a national holiday, Labor Day, as a conciliatory gesture toward the American labour movement.
The Sherman Silver Act
To help balance the economy, President Benjamin Harrison agreed to buy 4.5 million ounces of silver every month at market price. The U.S. Treasury, in turn, would issue notes that could be redeemed in either gold or silver.
This plan was known as the Sherman Silver Purchase Act of 1890. The legislation was named after the Republican who initiated it, U.S. senator John Sherman of Ohio. Although the idea may have been solid, in reality the Act did not work very well. The increased supply of silver forced down the market price. Mine owners tried to make up for their loss by cutting the wages of their miners and laborers, a move that led to unrest and violence throughout the mining regions. As holders of the notes understandably redeemed them for gold rather than silver , the federal gold reserve was steadily drained.
Three weeks after Grover Cleveland was sworn in as president for the second time in 1893, the gold reserves dipped below $100 million. This event weakened an already unsteady trust in the federal government. The Sherman Act was repealed, but it was too late. Silver mines were shut down across the mining regions. The price of silver per ounce dropped from 83 cents to 62 cents in one four-day period. Banks failed by the hundreds, and property values decreased to nearly nothing. America’s economy was in serious trouble.
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Parallels To The 2008 Financial Recession
The parallels between The Bank Panic of 1907 and the 2008 recession are striking.
The Great Recession of the late 2000s was centered around investment banks and shadow banks without direct access to the Federal Reserve System, whereas its predecessor spread from trust companies that existed beyond the New York Clearing House. In essence, both events started outside of traditional retail banking services but still ushered in distrust for the banking industry among the broader public.
Both were also preceded by a time of excess in the U.S. monetary and financial markets. The Panic of 1907 was preceded by the Gilded Age, during which monopolies such as Standard Oil dominated the economy. Their growth led to the concentration of wealth among select individuals. Teddy Roosevelt referred to the “predatory man of wealth” in one of his speeches.
Similarly, the period before the 2008 recession was characterized by loose monetary policy and growth in numbers at Wall Street. Tales of excess at banking and financial services institutions abounded as they raked in revenues after doling out dubious loans to Americans.
In 1907, Mercantile National Bank received plenty of financial support from the New York Clearing House. That’s analogous to the rescue of investment bank Bear Stearns during the height of the panic in 2008. For the uninitiated, Bear Stearns faced a serious run by its lenders right before it was ultimately purchased by J.P. Morgan Chase .
What Caused The Depression Of 1893 And How Did Conservative Or Liberal Policies Cause It
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Like the stock market crash of 1929, which is commonly viewed as the beginning of the Great Depression, the so-called “Panic of 1893” is usually seen as ushering in the terrible financial depression that followed. The Panic was set off by the collapse of a large railroad company, the Philadelphia…
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Reasons A Great Depression Could Not Happen Again
While anything is possible, it’s unlikely to happen again. Central banks around the world, including the Federal Reserve, have learned from the past. There are better safeguards in place to protect against catastrophe, and developments in monetary policy help manage the economy. The Great Recession, for instance, had a significantly smaller impact.
But monetary policy can’t offset fiscal policy. Some argue that the sizes of the U.S. national debt and the current account deficit could trigger an economic crisis. Experts also predict that climate change could cause profound losses.
Hope For The Hopeless
The Populist Party needed to get a leader in the White House. Its choice for the presidential candidate in the 1892 election was former U.S. representative James B. Weaver of Iowa. Weaver had been active in the Greenback-Labor Party and had unsuccessfully run for president on its ticket in 1880. Weaver was a lawyer who had served admirably in the Civil War, then later in the House of Representatives .
Weaver campaigned across the country on a speaking tour in 1892. To the surprise of Democrats and Republicans alike, he won more than one million popular votes on Election Day. His twenty-two electoral votes were not enough to win the election, but it was the first time a third party had won any states in the Electoral College since 1860.
Weaver ran against Democrat Grover Cleveland and Republican Benjamin Harrison. Cleveland won 277 electoral votes, leaving Harrison with 145. Weaver won the states of Idaho, Colorado, Nevada, and North Dakota.
In the congressional races of 1894, the Populists managed to get thirteen representatives into Washington. They increased their vote by 41 percent over the 1892 election when they garnered 1,471,000 votes. Although this was not enough to give them a majority in either the Senate or the House of Representatives, their success was impressive for a third political party.
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The Final Election Of The Nineteenth Century
As the voices of this “new” voting population got louder, Republicans and Democrats alike realized they would have to at least give the impression they were listening. Democratic president Grover Cleveland publicly echoed the sentiments of the farmers and laborers when he expressed concern over the growing power and wealth of a select few. Cleveland called this concentration of wealth undemocratic. In particular, the president attacked the protective tariffs that kept overseas competition from taking over an American market. These taxes were levied on certain goods that companies in other countries might want to sell in America. The taxes prevented most overseas competition from entering the American marketplace because doing so would cost them more money than it was worth. The protective tariffs made sure that American companies that sold the same items would have the business of American consumers. Cleveland believed this limited healthy competition and gave power to businesses that may not have the consumers’ best interests at heart.
L Frank Baum: Did Coxeys Army Inspire Dorothy And The Wizard Of Oz
Scholars, historians, and economists have long argued inconclusively that L. Frank Baum intended the story of The Wizard of Oz as an allegory for the politics of the day. Whether that actually was Baums intention is up for debate, but certainly the story could be read as support for the Populist Partys crusade on behalf of American farmers. In 1894, Baum witnessed Coxeys Armys march firsthand, and some feel it may have influenced the story.
This image of Coxeys Army marching on Washington to ask for jobs may have helped inspire L. Frank Baums story of Dorothy and her friends seeking help from the Wizard of Oz.
According to this theory, the Scarecrow represents the American farmer, the Tin Woodman is the industrial worker, and the Cowardly Lion is William Jennings Bryan, a prominent Silverite who, in 1900 when the book was published, was largely criticized by the Republicans as being cowardly and indecisive. In the story, the characters march towards Oz, much as Coxeys Army marched to Washington. Like Dorothy and her companions, Coxeys Army gets in trouble, before being turned away with no help.
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How Did The Gilded Age Affect American Politics
Politics in the Gilded Age were characterized by scandal and corruption, but voter turnout reached an all-time high. The Republican Party supported business and industry with a protective tariff and hard money policies. The Democratic Party opposed the tariff and eventually adopted the free silver platform.
What Was Going On In 1893
May 1 The 1893 Worlds Fair, also known as the Worlds Columbian Exposition, opens to the public in Chicago, Illinois. May 5 Panic of 1893: A crash on the New York Stock Exchange starts a depression. May 9 Edisons 1½ inch system of Kinetoscope is first demonstrated in public at the Brooklyn Institute.
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