The period of the Civil War and Reconstruction was one of opportunity, particularly for the new class of speculators and criminals attuned to the possibilities created by the federal government and Washington politicians on the one hand and government debt and paper currency on the other. Before the creation of the Federal Reserve System in 1913, the movement of gold and the overall trade balance were the chief determinants of the amount of credit available in the U.S. economy. He went on to compare the creation of the Fed with the unanticipated increase in the supply of gold produced in the 1880s and 1890s, necessarily increasing the supply of money and also the means for politicians to buy votes.
Author: Christopher Whalen
Published at: 2025-05-06 22:00:44
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