Vindicating Grant's Presidency: An Economic, Foreign Policy and Civil Rights Review.

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lurid

Sergeant
Joined
Jan 3, 2019
No, The postwar boom was charged by the issuing of bonds to build railroads and other projects the overcapacity cause many bonds to be defaulted on... if had read my link you would know... giving us the Panic of 1873... Now, I think you forgot about the 1928 stock market crash which ushered in the Great Depression. The items you mention were just gasoline being added to the fire. Note: Hoovers' desire to stay on the gold standard cause tight money supply so there was no money for the banks... Note: Smoot Hawley was the death nail to the economy in the early 1930's... I would not have to correct your miss interpretation of history if you would read my post and links...
You are discussing the climax without discussing the antecedence first; which you are attributing the entire link you posted to the entire causation of the crash of 1873, and that's totally a rookie error.

Here's what exactly caused the Depression of 1873:

Preface #1: The Germans had won the Franco-Prussian War, which France was forced to pay Prussia 5 billion in Francs in war indemnities. Therefore, German investors invested a lot of that money in American railroads which were over speculated to begin with but grew out of control once the Germans started to invest.

Economics 101: investors overestimated the profitability of the railroads by investing money in railroads that would not return great rewards. Therefore, the railroad industry was in a bubble, ripe for collapse.

Preface #2: Germany's stopped using silver as monetary metal. The United States used gold and silver as redeemable to give more value to the currency and keep inflation low.

Economics 101: if $1 is fixed to an oz. of gold, that would prevent the dollar from losing value because it is pegged to gold because it is stable. When Germany stopped redeeming silver, it meant there was less of incentive to hold silver and demand for silver dropped and it devalued silver. Because the US and other countries fixed their exchange rates to silver, when the value of silver dropped so did the value of its currency causing inflation. The US and other nations decided to demonetize silver and adhere to the gold standard, which meant less precious metals could redeem currency sharply contracted the money supply and reducing the amount credit available, which lowered investment and circulation.

Preface #3: it Compounded when Germany opened up their economy, increasing German investment, decreasing foreign investment in the United States. Many US railroads relied on foreign investment, so it was bad news. Insert that the railroads in the US were corrupt which made the Europeans reluctant to invest. Insert a housing bubble in Europe which forced Europe in a recession diminishing investment in the US.

Preface #4: Insert Credit Mobilier overcharged the government in conjunction with the recession in Europe from the housing bubble caused investment to diminish.

Now we can insert your link: https://cityroom.blogs.nytimes.com/2008/10/14/learning-lessons-from-the-panic-of-1873/

Can you understand that there was a great build up in monetary, finance and investment problems abroad that culminated that eventually pressurized Jay Cooke to falter, then Pandora's Box was opened and banks collapsed and then the depression s

You automatically posted a link that attributed the depression in 1873 to faltered bonds that were over speculated, but did not realize or were aware of that other variables were the main contributors to the why railroads bonds devalued, and then the subsequent bank failures. All the link you posted explained is how the government tried to buy those defaulted bonds to no avail, but it omitted the immense precursors that were the real culprits, and that's what I was trying to explain to you in post #7...

Edited.
 

WJC

Major General
Moderator
Thread Medic
Answered the Call for Reinforcements
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Aug 16, 2015
***Posted as Moderator***
A reminder: Modern politics is beyond the scope of this Forum. Please restrict posts to discussing Grant's presidency, a 19th-century event.
 
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5fish

Captain
Joined
Aug 26, 2007
Location
Central Florida
You are discussing the climax without discussing the antecedence first; which you are attributing the entire link you posted to the entire causation of the crash of 1873, and that's totally a rookie error.
I know the backstory of the 1873 Panic (The First Great Depression) it lasted 6 years... Your 101 class on the Panic 1873 will do for now... needs something...

The story here is President Grant what was he suppose to do either to stop or mitigate the Panic or how he handled the Panic once it came into force... His handling of the Panic had long term consequences for our nation good and bad...

So here: https://pastexplore.wordpress.com/2014/09/17/president-ulysses-s-grant-and-the-panic-of-1873/

The challenges Ulysses S. Grant faced during his presidency alert us to the difficulties that emerge when economies take unexpected downturns. Should the government print and infuse more cash to alleviate unemployment and bankruptcy, or is it wiser to move towards “sound money” and the payment of past debts? Our own economic difficulties, spawned from the Great Recession of 2008, show that we still continue to debate these questions today.

Here is this the conservative view of Grants policies :

Frank Scaturro deems Grant’s economic policy as one that “was singularly successful in the aftermath of the most serious fiscal problems the nation had ever faced” (49).

Blanke takes a more critical perspective than Scaturro towards Grant’s economic policies, arguing that “the long downturn further concentrated capital in the hands of fewer and fewer suppliers,” leading to a concentration of wealth in the hands of the few. By 1890, 71 percent of the nation’s wealth was in the hands of 9 percent of its citizens, “an unhealthy and lopsided disparity of wealth distribution that has only been equaled, in this country, in the past 20 years.”

Grant's tight money policies ensure the Panic lasted larger than it would have with a loser money policy...
This is the biggest black eye: The panic was basically the death nail in Reconstruction...

There were also negative consequences of these policies, however. Reconstruction policies aimed at enforcing the fifteenth amendment and protecting Southern blacks at the voting booth lost support from Northerners more concerned about their own financial difficulties than protecting black rights. Southern whites also expressed outrage when federal funding for infrastructure projects in the former Confederate states dried up. The expense of keeping the military in the South to enforce federal law was seen as excessive in the eyes of many Northerners.
 

5fish

Captain
Joined
Aug 26, 2007
Location
Central Florida
Because of Presidents Grant's tight money policies most likely added greatly to these numbers...

link: https://www.pbs.org/wgbh/americanexperience/features/grant-panic/

Mirroring the firm's collapse, many other banking firms and industries did the same. This collapse was disastrous for the nation's economy. A startling 89 of the country's 364 railroads crashed into bankruptcy. A total of 18,000 businesses failed in a mere two years. By 1876, unemployment had risen to a frightening 14 percent.

Here is an interesting note the North did not want to leave troops in the south to fight White Supremacist but the North supported the use of troops on strikers...

That same year, the depression set off railroad strikes. Workers all over the country, in response to wage cuts and poor working conditions, struck and prevented trains from moving. President Rutherford B. Hayes was forced to send federal troops to more than a half dozen states to stop the strikes. In the end, the fighting between strikers and troops left more than 100 people dead and many more injured.

 

Sbc

First Sergeant
Joined
Aug 18, 2015
Location
Georgia
You are discussing the climax without discussing the antecedence first; which you are attributing the entire link you posted to the entire causation of the crash of 1873, and that's totally a rookie error.

Here's what exactly caused the Depression of 1873:

Preface #1: The Germans had won the Franco-Prussian War, which France was forced to pay Prussia 5 billion in Francs in war indemnities. Therefore, German investors invested a lot of that money in American railroads which were over speculated to begin with but grew out of control once the Germans started to invest.

Economics 101: investors overestimated the profitability of the railroads by investing money in railroads that would not return great rewards. Therefore, the railroad industry was in a bubble, ripe for collapse.

Preface #2: Germany's stopped using silver as monetary metal. The United States used gold and silver as redeemable to give more value to the currency and keep inflation low.

Economics 101: if $1 is fixed to an oz. of gold, that would prevent the dollar from losing value because it is pegged to gold because it is stable. When Germany stopped redeeming silver, it meant there was less of incentive to hold silver and demand for silver dropped and it devalued silver. Because the US and other countries fixed their exchange rates to silver, when the value of silver dropped so did the value of its currency causing inflation. The US and other nations decided to demonetize silver and adhere to the gold standard, which meant less precious metals could redeem currency sharply contracted the money supply and reducing the amount credit available, which lowered investment and circulation.

Preface #3: it Compounded when Germany opened up their economy, increasing German investment, decreasing foreign investment in the United States. Many US railroads relied on foreign investment, so it was bad news. Insert that the railroads in the US were corrupt which made the Europeans reluctant to invest. Insert a housing bubble in Europe which forced Europe in a recession diminishing investment in the US.

Preface #4: Insert Credit Mobilier overcharged the government in conjunction with the recession in Europe from the housing bubble caused investment to diminish.

Now we can insert your link: https://cityroom.blogs.nytimes.com/2008/10/14/learning-lessons-from-the-panic-of-1873/

Can you understand that there was a great build up in monetary, finance and investment problems abroad that culminated that eventually pressurized Jay Cooke to falter, then Pandora's Box was opened and banks collapsed and then the depression s

You automatically posted a link that attributed the depression in 1873 to faltered bonds that were over speculated, but did not realize or were aware of that other variables were the main contributors to the why railroads bonds devalued, and then the subsequent bank failures. All the link you posted explained is how the government tried to buy those defaulted bonds to no avail, but it omitted the immense precursors that were the real culprits, and that's what I was trying to explain to you in post #7...

Edited.
It seems you are omitting some of the complexities related to de jure adoption of the gold standard in the US. By itself America was producing too much silver in the west to sustain the price of the metal. Gold at that time (1873) also had a market price that exceeded the pre-war fixed government price.
Congress grappled continually with our monetary system throughout the 19th century.
 
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