ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
-A A +A

How the US Treasury Avoided Chronic Deflation by Relinquishing Monetary Control to Wall Street

Prior to the 1907 financial crisis, the Unites States Treasury performed nearly all the functions that later were assigned to the Federal Reserve after its creation in 1913. The political intent of the Federal Reserve--and indeed, the effect--was to shift control over money and credit away from Washington to Wall Street and other financial and business centres. This aim was voiced already in the 1830s by the Whigs in their fight with Andrew Jackson. The broad economic aim was to prevent a recurrence of the monetary deflation that had long held back the US industrial development, at first after Jackson's war on the Second Bank in the 1830s, and again after the civil war as the government forced prices for gold and other commodities back down to their pre-war levels.



Subscribers please login to access full text of the article.

New 3 Month Subscription
to Digital Archives at

649for India

$20for overseas users

Get instant access to the complete EPW archives

Subscribe now

Comments

(-) Hide

EPW looks forward to your comments. Please note that comments are moderated as per our comments policy. They may take some time to appear. A comment, if suitable, may be selected for publication in the Letters pages of EPW.

Back to Top