Showing posts with label Economic History. Show all posts
Showing posts with label Economic History. Show all posts

Friday, December 20, 2013

Was Santa White?

Heather Cox Richardson

Pundits have sunk their teeth into a fight recently over whether or not Santa was white. After Fox News commentator Megyn Kelly declared Santa’s whiteness was a given, some called up the history of the original St. Nicholas (the patron saint of scholars, as well as children, by the way) to point out that the historical figure was Greek and therefore probably not light-skinned. Others have responded by noting that “Santa” is a universal and timeless figure who should not be bound by any physical characteristics.

But there is a different story worth noting in this odd debate. In fact, America has its own, very specific version of “Santa” who arrived during a particular moment in American history. That moment was the 1880s, a time when the nation appeared to be reaching some kind of healing after the deep wounds of the Civil War.

By the 1880s, Americans North, South, and West, had reached a political equilibrium, and that calm appeared to be driving a healthy economy. Politicians had ceased to fight over reconstruction. Northerners had come to accept that white Democrats would control the South; northern leaders turned to new western territories to make up the electoral votes they needed to continue to hang onto national power.

After a terrible financial crash in 1873, the economy had begun to pick up again by 1878, and by 1880, Americans were feeling flush and optimistic again. They began to celebrate significant events with parties and gifts. Weddings were no longer small affairs in someone’s front parlor; now they were elegant occasions in a decorated church with a reception afterward. For the first time, parents held parties for their child’s birthday, and those invited brought gifts for the guest of honor. Thanksgiving became a major holiday, marked with feasts of turkeys, ducks, or geese.

Monday, December 9, 2013

Why Were Tariffs Politically Important in Late 19th-Century America?

Heather Cox Richardson

After the Civil War, new industries brought Americans not just new products, but also more spending money and leisure time than any generation had ever had before. Far flung railroad, oil, and steel
President Grover Cleveland humiliated by the Wilson-Gorman Tariff Act.
operations, along with those of every other business, needed middle managers who could oversee production and sales and then report back to business owners. These new “white collar” workers had steady incomes and free time. They bought nice clothing and novels, and went to the theater; their wives played lawn tennis and their children had ice cream to eat and toys to play with at newfangled parties given just for them on their birthday.

Big business brought comfort and entertainment to many Americans, but it also brought grinding poverty to many others. Workers sweating near factory furnaces and entrepreneurs forced out of markets by monopolists resented the power of industrialists. By 1880 they focused their anger on the fact that American industry held its extraordinary position because it was protected by a law that kept foreign goods out of America. That law was called a tariff.

Tariffs were essentially taxes on products coming into America. They meant that foreign goods could not compete with American products because, no matter how cheaply they could be produced, the addition of tariff fees to their selling costs would make them more expensive than American goods. Since American producers did not have to worry about foreign competition, the leaders in an industry could work together and set whatever prices they wished.

Tuesday, November 26, 2013

How the Pilgrims Repented of Socialism and Gave Thanks

[This post originally appeared on November 20, 2013, on the Faith and History blog, and is reposted here with the permission of the author]
Robert Tracy McKenzie

As I promised in my last post, I want to share some thoughts about Rush Limbaugh’s recent book, Rush Revere and the Brave Pilgrims: Time-Travel Adventures with Exceptional Americans. Released just three weeks ago, the book by the popular conservative radio host is now the second best-selling work on Amazon and has already elicited 470 reader reviews, nearly 90% of which are five-star raves. They praise it as a “factually correct,” “unbiased,” “true history” that will help to combat the “liberal propaganda that the children are being fed today.” (These are all comments that appear within the last twenty-four hours.)

What strikes me about these responses is how utterly confident the reviewers are in the historical accuracy of a work of children’s literature that centers on the adventures of a time-traveling talking horse. There are no footnotes. No bibliography. No list of suggested readings. No evidence of any kind.

Historical evidence, for most of us, is sort of like the foundation of a house. I remember when my wife and I were ready to buy our first home. In the back of my mind, I knew that the structure needed to rest on a firm foundation, but I didn’t waste much time thinking about it. I was a lot more concerned about floor plans and color schemes and square footage, and I remember being irritated when someone suggested that I should look underneath our dream home before buying it. (“You want me to crawl where?”) I think we tend to shop for history in much the same way. If a particular history book reinforces convictions that we already hold, it rarely enters our mind to investigate the underlying evidence. No need to go down in the crawl space when the rest of the house is so appealing.

Wednesday, November 6, 2013

Ice, Ice Baby

Jonathan Rees

When I titled my book Refrigeration Nation, I had to fight the urge to try out any number of bad puns first. Somehow doing that for blog posts seems more acceptable since they’re more transient. So no, I’m not going to make you watch a Vanilla Ice video (although I’m sorely tempted). Instead, take a look at this:



By the time this amateur film was made in 1919, the practices it documents had largely passed into history. Testing  ice for thickness, cutting a grid pattern on the ice with what looks exactly like horse-drawn plows, moving blocks of ice across a narrow channel cut in a lake and into an ice house – each of these practices began over a century earlier in New England. Even today it seems incredible that New England once sent its ice for sale as far away as India. Other than shipbuilding and fishing, this may have been that region’s largest industry.

Monday, August 26, 2013

The Late Historian Robert Zieger on the 1963 March on Washington

Randall Stephens

From Life magazine, September 6, 1963.
Across the US and around the globe people are marking the 50th anniversary of the "Jobs and Freedom" march on Washington, D.C.  Roughly 200,000 men and women, young and old, black and white gathered to demand justice and equality on Wednesday, August 28, 1963. 

Among the throng who came together around the reflecting pool at the Lincoln Memorial were a collection of historians. (How interesting to think how this event so shaped the writing of those in attendance and many more who witnessed it from afar or learned of it years later.)  Some were soon-to-be historians or historians-in-training from the University of Maryland, Howard University, Johns Hopkins University, UVA, George Washington, and others. Among the many in attendance were Clayborne Carson, Dorothy Drinkard-Hawkshawe, and Robert Zieger

From Life magazine, September 6, 1963.
Zieger, who passed away this year, was Distinguished Professor of History at the University of Florida. He was a remarkable historian, mentor, and all-around mensch.  (Read Paul Ortiz's commemoration here on the blog.)  One of Zieger's last works was For Jobs and Freedom: Race and Labor in America since 1865 (University Press of Kentucky, 2007). Zieger wrote an essay about his experience of researching and writing the book in Historically Speaking. Here he also reflected on that day in August 1963 in D.C. Here's a brief excerpt from "Jobs and Freedom," Historically Speaking (May/June 2008):

Shortly after I had begun active work on [For Jobs and Freedom], historian John Bracey visited [the University of Florida] campus and gave a fascinating talk to students about the state of black history at the time he began graduate school at Northwestern in the early 1960s. It soon became apparent that Bracey and I were of a similar age. He recounted that in the initial syllabus for his 19th-century U.S. history seminar, there were no works by black scholars or, apart from works that dealt with slavery as a political problem, about the black experience in antebellum America. Bracey and a colleague, with the complete support of an abashed seminar director, soon rectified the omission. Bracey told this story as a way of indicating to his undergraduate student audience how far black history and race history had traveled in the four decades since.

Wednesday, July 24, 2013

Memo to America, Re: Welfare in the Olden Days

Gabriel Loiacono 
 
One evening, chatting with friends from church, one asked me what kind of history I focused on. I told him: the history of welfare in early America.  He said: what welfare in early America?

"The drunkard's progress, or the direct
road to poverty, wretchedness & ruin," 1826.
Courtesy of the Library of Congress.
I find myself having a conversation like that one more and more these days.  Whether on the left or the right politically, high school grads or Ph.D.s, most Americans I talk to assume that welfare is a creation of the twentieth century: midwifed by Franklin D. Roosevelt or Lyndon B. Johnson.  Those hearty, independent minutemen of the Revolutionary period, they assume, either made the poor find work or relied only on churches for charity. 

Occasionally, this assumption is voiced explicitly in national, political discourse.  For example, in a famous September 12, 2011 Republican Presidential Primary debate, Representative Ron Paul described assistance to the poor in the past thus: “Our neighbors, our friends, our churches would do it.”  Less off-the-cuff, respectable-looking websites will tell you that charity was almost entirely private before FDR, aside from a few dark and dingy poorhouses, which were more effective at driving inmates out than keeping them comfortable.  And it is not only critics of welfare who think this; one can find defenders of welfare describing the U.S.A. as essentially without welfare before FDR.[1]

Wednesday, May 1, 2013

The Role of Money and Timing in Culture: The CIA and Abstract Expressionism

Heather Cox Richardson

I have heard talk of the exportation of modern American art during the Cold War as a means of proselytizing, but I’d never considered the mechanics of that propaganda. It seemed to me a wing of art theory, and while that’s a subject that always entertains me, it’s something for which I have very little brain space during the school year.
From Life magazine, August 8, 1949.

A recent article by Frances Stonor Saunders in The Independent explains exactly how the CIA promoted American abstract expressionism worldwide in the 1950s and 1960s. Their goal was to highlight the openness and experimentation possible in America’s capitalist system, contrasting it with the rigid conformity of state-censored socialist realism (some of which, to my Philistinic eye, seems worth looking at even if Soviet state officials thought so, too.) At first, the CIA tried to promote work by Jackson Pollock, Robert Motherwell, Willem de Kooning, and Mark Rothko at home. Quickly, though, abstract expressionism ran into the conformism of the 1950s. Even President Truman announced: “If that’s art, then I’m a Hottentot.”

So CIA operatives set up the Congress for Cultural Freedom, which salted art magazines praising abstract expressionism and sponsored exhibitions that toured European cities. They worked closely with Nelson Rockefeller, president of New York’s Museum of Modern Art (which his mother had founded), to showcase “free enterprise painting.” When museums eager to show the new art could not afford the cost of exhibitions, the CIA tapped American millionaires as ostensible sponsors, then provided the necessary money from government coffers. After World War II, abstract expressionism became the symbol of modern America.

Monday, March 11, 2013

Field Trip: A Report from the Bright Side of Fourth-Grade History Education

Chris Beneke

Guided tour at Lowell National Park. 
Photo courtesy of www.nps.gov/lowe
If the experiences of my kids are at all representative, the glum accounts you’ve heard or read about elementary and secondary education in the U.S. have some basis in fact. Public school students move in virtual lock-step with their classmates, get a meager fifteen minutes for recess, and take tests with unsettling regularity. Meanwhile, their hardworking teachers and principals must manage both rigid curriculum standards and large classes.

In light of these oft-repeated concerns, my perspective brightened last week while chaperoning my son’s fourth-grade class trip to the Lowell National Park, the splendid and well-preserved site of the famous textile mills where America’s industrial revolution took off in the 1830s and 1840s. I didn’t come away feeling like a Finnish parent probably feels after accompanying his or her child on a field trip. Still, the experience left me much more optimistic about the trajectory of early history education: the kids arrived well-prepared and the museum’s activities were engaging, hands-on, well-paced, and occasionally revelatory.

Thursday, March 7, 2013

Robert Zieger, 1938-2013

Paul Ortiz

Robert H. Zieger, distinguished professor of history emeritus at the University of Florida, passed away on March 6, 2013.

Professor Zieger was one of the preeminent labor historians of the United States. He was a two-time recipient of the Philip Taft Labor History Book Award for the best book in labor history. He was a prolific writer and authored classic works including, For Jobs and Freedom: Race and Labor in America since 1865 (University Press of Kentucky, 2007),  The CIO, 1935-1955 (University of North Carolina Press, 1995), and America's Great War: World War I and the American Experience (Rowman & Littlefield, 2001).

In addition Bob was a spirited and rigorous historian who introduced countless scholars, students, union members, and community organizers to the field of labor history. He edited several key volumes in southern labor history including Life and Labor in the New New South (University Press of Florida, 2012) which presented some of the best new work in the field of southern labor studies.  Bob also penned essays on baseball for Harper's magazine, on labor race, and gender for Reviews in American History, and on the lessons of the past for Historically Speaking.

Wednesday, January 23, 2013

Unsafe in Candy Land

Eric Schultz

Recently, while researching material on an entrepreneur who launched her candy business at the turn of the twentieth century, I bumped into a series of newspapers articles that reminded me that the past really is a foreign (and often dangerous) land.

In 1900, America’s candy manufacturers boasted $100 million in invested capital and an annual business in candies and sweets that exceeded that of beer, wine and liquor combined.   A British newspaper declared that Americans “make their sweets as we make our bread, practically for a day’s consumption.”  In the days before the 1906 Pure Food and Drug Act, this extraordinary demand for all things sweet attracted swindlers, quacks and crooks.

The damage done was fathomless.  I uncovered article after article about children sickened and killed by adulterated candies throughout the 1890s and early 1900s.  Techniques used by manufacturers were often beyond the pale. Some candy was found to contain fusel oil (an ingredient used at the time in lacquer solvents). Other manufacturers cut their honey with glucose, brightened candies with the use of aniline colors (used in the manufacture of the precursors to polyurethane), and added terra cotta (a clay more often used to make bricks) for bulk and color.  In 1900, the Committee on Manufactures of the U.S. Senate found that condensed milk was among the most commonly adulterated products--except for perhaps extracts of fruit and vanilla, so suspect that only one manufacturer was even willing to allow a factory inspection.

Monday, January 14, 2013

Reeling in the Years: The Up Series

Randall Stephens

It's been seven years. That means it's time for another installment of the perennial favorite UP Series, which has followed the lives of over a dozen English men and women since they were 7. (The latest is running on PBS this month.) Granada Television first aired the program in 1964.  Other updates came in 1970, 1977, 1984, 1991, 1998, 2005, 2012.  The brainchild of Michael Apted, the series has tracked the participants hopes, fears, interests, successes, failures, and more. It ranks as one of the best, most original documentaries of the 20th century.

Fifty years ago Apted hoped to shine light on the deep class divisions in England and to see how that would shape the lives of these individuals as the grew into adulthood.

Here's what Rebecca Mead writes about it at the New Yorker blog (January 9, 2013):

The series began with a political agenda. Taking the Jesuit maxim “Give me a boy until he is seven, and I will give you the man,” it suggested that the prospects of the participants were determined by the class into which they were born. To a certain extent, this turned out to be true, particularly for those participants belonging to the social and educational élite. John, the prep-school boy, became a barrister, while his classmate Andrew became a solicitor. . . Less predictable were the fates of the working-class and middle-class characters.

Wednesday, June 13, 2012

Economics in the Age of Fracture

Dan Allosso

I’ve started re-reading Daniel T. Rodgers’ Age of Fracture.  I glanced at it in the final run-up to my PhD comps, but it didn’t make much of an impression.  Then Jane Kamensky mentioned it during her closing talk at the Historical Society’s recent conference, and I thought I ought to pick it up again.

This closer reading led me to a couple of thoughts.  First, that there’s probably a whole lot more in many of those books we powered through in grad school; it’s probably worth revisiting some of them and digesting them slowly.  Second, what doesn’t seem relevant when you’re under the gun and trying to absorb the historiography of a field may be really useful when you’re thinking about teaching or writing – especially for the public.

I’ve only scratched the surface of Age of Fracture so far, but it strikes me as a very interesting attempt to argue a complicated point for a more-or-less general audience.  This fascinates me, since I think historians really need to help us all understand how we got to where we are today.  I hope to pick up some ideas about how to do this, especially about where the boundary is between assertion and explication: how much of an argument you can carry with an authoritative voice and how much you need to demonstrate with evidence and analysis.  At one point, for example, Rodgers says, “What precipitates breaks and interruptions in social argument are not raw changes in social experience, which never translate automatically into mind. What matters are the processes by which the flux and tensions of experience are shaped into mental frames and pictures that, in the end, come to seem themselves natural and inevitable: ingrained in the very logic of things” (Kindle Locations 125-127).  This is an interesting claim; very close to the idea I just found in Giambattista Vico’s New Science (another book I picked up as a result of the conference), “Every epoch,” Vico wrote, “is dominated by a ‘spirit’, a genius, of its own. Novelty, like beauty, recommends certain faults which, after fashion changes, become glaringly apparent. Writers, wishing to reap a profit from their studies, follow the trend of their time” (quoted in Anthony Grafton’s Introduction).  It’s a provocative idea, and it obviously has a lineage – but is it true?  And can it be used to explain social change over time?
GDP Growth, 1923-2008, (Source: wikimedia).
Another thing Rodgers does, in the early pages of Age of Fracture, is to provide a schematic for a “historiography” of the field of Economics.  Beginning with Alfred Marshall (Principles of Economics, 1890), Rodgers traces the development of economic thinking (and college economic teaching) through Paul Samuelson (Economics, 1948), and then into the variety of competing interpretations resulting from the failure of macro-economic prediction in the 1970s and 80s.  Along the way, Rodgers mentions many of the relevant texts in this development: popular texts such as Milton Friedman’s Capitalism and Freedom and F. A. Hayek’s Road to Serfdom as well as academic titles like Ronald Coase’s “The Problem of Social Cost” and Richard Posner’s Economic Analysis of Law.  It would be interesting to organize a syllabus around these titles, and read them one after another.  In addition to tracing the development of economic theory, the themes of such a class might be to examine whether theory or contingency really moved society, and more importantly to test the point made above by Rodgers and Vico: to see if the explanations offered by economists in their historical moments contain “faults which, after fashion changes, become glaringly apparent.”

Monday, February 27, 2012

Capitalism and Colonialism

Dan Allosso

When I was reading for my US History oral exams, one of the historiographical arguments that really got my attention was the long-running debate over the market transition. The question of when America made the turn from being an agrarian, egalitarian society to becoming a commercial, class society fascinated me; and so did the heated disagreements of eminent historians. As I read more, I realized that a lot of the argument really had to do with the definition and grouping of these terms (as Michael Merrill brilliantly pointed out in a 1995 article called “Putting Capitalism in its Place”). Were Joyce Appleby and Christopher Clark (not to mention Allan Kulikoff or Winifred Rothenberg!) even talking about the same thing when they used the words capitalism, market, commerce, and agrarian? Did “agrarian” naturally line up against “commerce,” and did either side really own the moral high ground?

Now I’m teaching Honors US History to undergrads. Clearly it wouldn’t be appropriate to expose them to the full glare of this debate. It would not only take too long to do, but it would be drilling too deep in even an Honors general education class for non-history majors. But I don’t want to cruise through this moment in history without mentioning it – I’m trying to challenge these students to think critically, so it’s my job to bring up the complex issues the textbook buries.

I had them read a couple of chapters of Matthew Parker’s 2011 book The Sugar Barons. Parker writes about Barbados in the early decades of its sugar revolution, the 1630s and 40s. He includes a detailed description of the introduction of slaves into the British sugar economy, through an interesting series of highly conflicted excerpts from the memoirs of English observers. A really valuable addition, from my perspective, was Parker’s extensive use of letters between several Barbados planters and merchants and John Winthrop, Governor of the City on the Hill.

The direct connection between Boston and the West Indies is useful, I think. Unlike Virginia or the New Netherlands or the Spanish colonies, which are usually presented to students as business ventures, the New England colonies are often portrayed as the seat of . . . something different. Something exceptional. The early link between Boston and Barbados, the Winthrop family’s business interests in the Caribbean, and the close connection that developed during the English Civil War, when Barbados became a principal market for New England produce, are all important challenges to the idea that there was ever a clean separation between commerce and colonies.

This is not to say that the type of agrarian anti-capitalism described by historians like Kulikoff never existed. But perhaps it suggests that when such sentiments developed, they were reactions to a colonial system built on a very problematic type of commerce rather than attempts to claim that a naïve, pre-commercial yeomanry had ever existed in America. From this perspective, even the earliest “agrarian” documents like Jefferson’s Notes on the State of Virginia seem to share something with writings of back-to-the-land idealists of the 19th, 20th, and 21st centuries.

Monday, February 20, 2012

Board Games, Capitalism, and Piracy

Heather Cox Richardson

It’s fairly widely known that the game Monopoly was developed in America in the late nineteenth century to illustrate the evils of land monopoly. Rising prices, especially in the cities, in the 1870s and 1880s brought fortunes to a lucky few and misery to many. Ideas for negotiating this rough transition to a modern economy sprouted from all sorts of fertile minds, but few held the popularity accorded to Henry George’s Single Tax plan. George had lived both in California and New York during land booms and argued that land values rose through public development, rather than through individual enterprise. To restore equality, he argued, the government should take this unearned wealth back from the pockets into which it fell by taxing the value of the land.

This seemed a remarkably easy way to address the problem of growing inequality. Henry George clubs sprang up across the U.S. and even spread to Europe. George came close to winning the mayoralty of New York City in 1886 (he won more votes than newcomer Theodore Roosevelt). And Elizabeth Magie invented The Landlord’s Game, Monopoly’s forerunner, to explain the principles of land monopoly to potential Single Tax acolytes.

As anyone who has endured a rainy afternoon as a child knows, playing Monopoly was also a brutal lesson in the harshest form of capitalism. Invariably, one player emerged early as the canniest trader, or was lucky enough to capture Boardwalk and Park Place. S/he would slowly bleed the rest of the players dry over the long, painful course of hours. The only real option for a losing player was to rob the bank (something that, sadly, I didn’t figure out until I watched my children play the game). As someone said to me today, a young loser did not figure out the game was rigged, but rather assumed s/he was just bad at the game.

The structure of “land monopoly” and the internalization of failure, of course, were what Henry George’s followers were trying to highlight.

In contrast to the long, slow death of Monopoly stands the original Pirateer, a game that took the toy world by storm in 1994. It was produced independently, very briefly, by the Mendocino Game Company. In 1996, it won the Mensa Select Award for board games. In Pirateer, four gangs of pirates compete to collect a treasure from the island at the center of the board. They must then get it back to their own harbor before their ships are sunk by the other pirates, tacking according to wind patterns and the roll of dice. It is a rollicking game, essentially a free-for-all, but one that is bounded by natural laws (the wind), limited elements of luck—the roll of dice—and by a player’s strategic skill.

Crucially, anyone can win Pirateer right up to the very last play of the game. A clever four-year-old seeing the patterns of the board differently than his opponents can beat a seasoned player. No one can have a lucky break that determines the entire cast of the game. Everyone stays enthusiastic. No one gets an early advantage that means success four painful hours later. And the resentments at the end of Pirateer are correspondingly minor compared with those after Monopoly.

The contrast between these games hit me today when someone suggested that the true secret to the success of capital accumulation was protecting goods from piracy. The discussion was of the 1400s and the importance of walled cities, but it seems to me to hold true for colonial settlements in America, and even for modern-day attempts to regulate the internet.

Monopoly and Pirateer. Worth thinking about.

Friday, January 27, 2012

Chinese History Roundup

.
Roberta Smith, "History Unfolding on a Hand Scroll," New York Times, January 26, 2012

The painter Fu Baoshi was born in China in 1904, seven years before the Chinese Revolution brought 2,100 years of dynastic rule to an end. He died in 1965, months before China’s Communist regime unleashed the Cultural Revolution, which aggressively persecuted the country’s writers, artists and other intelligentsia, sometimes unto death.>>>

"A nation of city slickers.
A first in Chinese history: city-dwellers outnumber the rural population,"
The Economist, January 21, 2012

FOR a nation whose culture and society have been shaped over millennia by its rice-, millet- and wheat-farming traditions, and whose ruling Communist Party rose to power in 1949 by mobilising a put-upon peasantry and encircling the cities, China has just passed a remarkable milestone. By the end of 2011, according to the National Bureau of Statistics, more than half of China’s 1.35 billion people were living in cities.>>>

Sergey Radchenko, "China's iron grip on past impairs future on world stage," Sydney Morning Herald, January 4, 2012

With China stumping assertively on the world stage, one might think Beijing would be open, even gracious, about the country's past. To the contrary, history remains a sensitive subject, drawing relentless attention from authorities anxious to keep all skeletons safely in closets.>>>

Bethan Jinkinson, "The story behind Chinese war epic The Flowers of War," BBC, January 24, 2012

The film, directed by Zhang Yimou and starring English actor Christian Bale, opened in China on 16 December.

Since then it has been shown on thousands of screens across the country, taking $93m (£60m) gross in its first five weeks, according to entertainment research group EntGroup Consulting.

It was also the highest-grossing Chinese film of 2011.>>>

Tuesday, November 1, 2011

November issue of Historically Speaking

Randall Stephens

In not too long, the November issue of Historically Speaking will be shipping out. And, as usual, it will soon be posted on Project Muse. This issue features a forum with Joyce Appleby on the emergence of capitalism; Peter Coclanis and Stanley L. Engerman's discussion of the influence of Eugene and Elizabeth Fox Genovese; essays on the Christian America debate; and more. Here's the run down:

Historically Speaking (November 2011)

Taking Historical Fundamentalism Seriously
Johann N. Neem

Historians Meet Thanksgiving: What Would George Do?
Sam Wineburg and Eli Gottlieb

The Early Modern Origins of Capitalism: A Roundtable

The Cultural Roots of Capitalism
Joyce Appleby

What’s Left for Economics? A Comment on Appleby
Hans L. Eicholz

Comment on Appleby
Hendrik Hartog

Response
Joyce Appleby

Athens and Sparta and the War of Rank in Ancient Greece: An Interview with J.E. Lendon Conducted by Donald A. Yerxa

Labor Day: The Lessons of the Past
Robert H. Zieger

The Intellectual World of Southern Slaveholders: Two Assessments of the Recent Work of Eugene D. Genovese and Elizabeth Fox-Genovese

Sic et Non
Peter A. Coclanis

The Richness of Intellectual Life in the Antebellum South
Stanley L. Engerman

Teaching and Writing about the History of African-American Christianity: An Interview with Paul Harvey
Conducted by Randall J. Stephens

Then, and Then Again
Joseph A. Amato

Bloodlands: Europe between Hitler and Stalin: An Interview with Timothy Snyder
Conducted by Donald A. Yerxa

Thursday, October 20, 2011

The Brixton Pound and Localism

Philip White

In recent years, there has been a resurgence in localism in the foodie and environmentalist communities in the US, with farmers markets and specialty grocers the beneficiaries of those looking for locally-grown produce sold outside of Wal-Mart and its ilk, which typically favor the cheapest possible foreign fare. The trend makes sense for health reasons – not a shock that peaches from an orchard five miles away are more nutrient-dense and typically less pesticide-afflicted than those shipped from Central America – and for the local economy. Traders such as independent book stores and one-off coffee shops have also benefited from those who’d prefer to patron small businesses with whom they can build long-term relationships, rather than store #7680 of a huge multinational.

However, there is no doubt that “Main Street” as it’s often called here and “The High Street” in the UK has failed to halt the overall decline in number of stores and business volume that arguably began since the advent of the big box stores that accompanied the expansion of suburbia in the 1950s and 1960s.

To help turn the tide, some towns are introducing local currencies that encourage residents and merchants to spend their money with neighboring small businesses. In the US, these and other forms of financial exchange media that became known as “scrip” – including Larkin Merchandise Bonds and Caslow Recovery Certificates – were introduced during the Great Depression to alleviate the challenges caused by lack of cash flow. As many as 5,000 were in circulation by the mid-1930s. More recently, local currencies such as San Francisco’s Bernal Bucks, Great Barrington (Mass.)’s Berkshares and the Ithaca (NY) HOUR (also a payment system for labor there) have promoted local trading. These are typically introduced by groups of business owners and/or private citizens, and are not backed by city, state or federal government.

The latest area-specific currency in the UK is the Brixton Pound (B£) re-launched earlier this month after a more limited first issue in 2009. Several rural English towns, including Lewes, Stroud and Totnes have run similar schemes with mixed results, but Brixton, located in south London, is the first urban area to try it. Rather than replacing the pound, the B£ is a complementary currency, which is supported by the local council but not backed by the government. Companies or individuals can exchange pounds for the local notes in person or by electronically transferring money into the B£ Community Interest Company account, which they can only spend in independent stores within Brixton. For a limited time, those who do so will get a 10 percent bonus. To help publicize the initiative, Brixton notes are embossed with images of local celebrities, such as NBA star Luol Deng, WWII secret agent Violette Szabo and, most notably, David Bowie in his memorable Aladdin Sane album pose.

So what effect will the Brixton Pound have on the local economy and, beyond that, on the lives of those who live there? It’s worth noting that the area has been a hotspot for racial tension in the past 30 years, with riots in 1981, 1985, 1995, and, most recently, this past August. Brixton is blighted by high unemployment, crime and poor relations between the police and residents. So, in one sense, any proactive policy that involves residents in a scheme that boosts pride in their area and engages them with local businesses has to be positive. And organizers are adamant that widespread use will reduce Brixton’s environmental impact. But whether such a plan can truly reinvigorate independent merchants or is merely postponing their demise remains to be seen. What else can local communities do to restore profitability to their ‘Ma and Pa’ shops? How do such schemes fit in with broad-stroke localism/direct democracy plans that would enhance local government while limiting centralized control?

Tuesday, October 11, 2011

Running on Empty: Back to the Seventies

Randall Stephens

At least since Bruce Schulman published his The Seventies: The Great Shift In American Culture, Society, and Politics in 2002, historians have been reflecting on that pivotal decade and how it altered the course of recent American history. Maybe it's a sign of the historiographical times that Jefferson R. Cowie's Stayin' Alive: The 1970s and the Last Days of the Working Class won the prestigious Parkman Prize in 2011.

Historians like Daniel T. Rodgers (Age of Fracture) and Judith Stein (Pivotal Decade: How the United States Traded Factories for Finance in the Seventies) also weighed in on the era in 2011. And new explorations of religion and politics in the postwar years are changing what we think about the "recent" rise of the Religious Right (see Dan Williams' God's Own Party: The Making of the Christian Right and Darren Dochuk's From Bible Belt to Sunbelt: Plain-Folk Religion, Grassroots Politics, and the Rise of Evangelical Conservatism).

Is this the scholarly analogue of what The Onion hilariously described back in 1997?: "U.S. Dept. Of Retro Warns: 'We May Be Running Out Of Past'". Unlikely. But, still, the past keeps catching up with us. The seventies--with all it's tragic pathos, decline, hirsute decadence, and acres of polyester--just pulls us in. The decade is certainly a draw for those observes who like to emphasize the heartbreaking, grim side of life. Maybe in these desperate economic times we also see ourselves reflected back in that bleak era.

Josh Rothman makes that point in the Boston Globe this Sunday. He also cites out very own Journal of the Historical Society.

When we talk about today's economic crisis, we tend to think about the 1930s and the Great Depression. Increasingly, though, economic historians are focusing on another decade -- the 1970s. It was during the seventies, conventionally dismissed as an aesthetically challenged interegnum between the revolutionary sixties and the Reaganite eighties, that the seeds of our current crisis were planted. The argument was advanced last year, primarily in Pivotal Decade: How the United States Traded Factories for Finance in the Seventies, by Judith Stein, a historian at CUNY. Now it's gaining momentum, with a roundtable of historians and economists responding to the book in this month's issue of The Journal of the Historical Society. As the historian Daniel Rodgers puts it, "In the economic history of the first half of the twentieth century, the crucial decade was the 1930s. For the second half of the twentieth century," there is a "growing consensus" that "the pivotal decade was the 1970s."

I couldn't agree more. In a modern US course several years ago my students and I explored the cultural and political dimensions of the seventies hangover by reading
Andreas Killen's captivating, yet underappreciated 1973 Nervous Breakdown: Watergate, Warhol, and the Birth of Post-Sixties America. (I take special pride in being born in such an awful year.)

John Lennon, not long before his death at the hands of a deranged man, told an interviewer: "Wasn't the 70s a drag, you know? Here we are. Well, let's try and make the 80s good, you know?" Yet the Me Decade would linger on and on. So writes Killen in his intro paragraph:

Will the seventies never end? The question asked recently by a pundit in the New York Times is a valid one. The sevenries are, indeed, the decade that refuses to end--despite the fact that, for a long time, they barely counred as a decade, so completely were they obscured by the long shadows cast by both the sixties and the eighties and by the noisy clamor of their respective partisans. While the former were claimed by the Left and the latter by the Right, the seventies remained the foundling of recent American history, claimed by no one. Despite the current wave of seventies nostalgia and revisionism, these years still need to be liberated from the two decades that bracket them. More than simply the aftermath to the one and the prelude to the other, this decade should be considered on its own terms, as a distinct cultural moment, a moment of rupture and discontinuity in American history but also of tremendous creativity.

Friday, September 9, 2011

Alabama Claims, Economic Development, and a Possible Thesis Topic

Heather Cox Richardson

Like most other good, red-blooded Americans, I have spent much time lately thinking about the Alabama Claims.

After the Civil War, the American government demanded that the British government pay damages in reparation for the destruction caused to American shipping by warships built for the Confederacy in England. International arbiters threw their weight behind the American argument, and in 1872 Britain paid America $15.5 million to settle the cases.

A paragraph or two on the Alabama Claims shows up in every textbook on the American Civil War, and scholars always refer to them when discussing the foreign policy issues of those dramatic war years. Sometimes we even mention them when we talk about postwar trading patterns, explaining that the burning anger Northerners developed for England during the war encouraged them to look for new trading partners in the Pacific to enable the nation to sever ties with Europe.

But it came to my attention this summer that I had never seen a discussion of what ultimately happened to that $15.5 million. In the references I’ve seen, it simply stops dead when it goes to the United States.

It turns out that’s not at all the way it played out.

I had a conversation this summer with an elderly woman who mentioned that her prominent family’s financial start had come from the lump sum her seafaring great grandfather had received from the U. S. government because he had been “captured by pirates.” This didn’t quite add up, since I couldn’t figure out why the government would reimburse a sea captain for a pirate attack, and because the dates the man lived didn’t coincide with any major pirate activity on the American East Coast, where he sailed. My friend knew the name of his ship, enabling me to chase down what had happened to it. A quick search of on-line newspapers revealed that the “pirate” who had captured and plundered his ship was Rafael Semmes, captain of the C. S. S. Alabama, and the ship had been taken during the Civil War. Her great grandfather received a cut of the Alabama Claims money, and it was enough to enable him to establish a store, hotel, ice cream parlor, and bowling alley in his New England town. To this day, his heirs remain a leading family in the community.

Was it unusual that her family had received enough cash to establish them as prominent citizens in their New England town? I started to poke around a bit, and at the Yarmouth Historical Society discovered the history of Alfred Thomas Small, the master of the Lafayette. Semmes captured this ship on February 23, 1862, and held the captain and crew in chains for several days before sending them back to Boston in another of his prizes. He then burned the Lafayette to the waterline.

On June 10, 1875, Captain Small received a settlement of $6,712.91 from the Alabama Claims, along with $3,391.51 in interest since the taking of his ship, netting the captain a tidy sum of more than $10,000. It was enough to set him up as a local magnate in a thriving seaport. After thirty-five years at sea, Captain Small settled in Yarmouth, Maine, and managed the Yarmouth Manufacturing Company that generated electricity for the town. He quickly became a leading citizen.

Two stories of wealth brought into New England towns through the Alabama Claims do not a pattern make, but they are suggestive. Has anyone ever traced down what happens to reparations claims in general? How do they affect economic development? In the end, who pockets the cash, and what do they do with it? And what about the Alabama Claims in particular? Since the ships taken by Confederate raiders largely came from New England, did the Alabama Claims have a noticeable effect on postwar development in small New England towns?

Seems to me like a thesis begging to be written. Any takers?

Monday, August 1, 2011

Life and Debt in the US

Randall Stephens

Has the United States ever defaulted on its debt? Yes. It did so in 1790 and in 1933 as well. Both cases are quite different from the current situation in D.C. (More on that below.)

The second of those had to do with the repayment of gold obligations. When "President Roosevelt and the Congress decided that it was a good idea to depreciate the currency in the economic crisis of the time," writes Alex J. Pollock, "they also decided not to honor their unambiguous obligation to pay in gold."

Arthur Schlesinger dealt with the matter in his Coming of the New Deal, 1933-35. The administration, wrote Schlesinger, aimed to break loose from foreign economic entanglements. Here's Schlesinger:

From the viewpoint of classical theory, Roosevelt's decision to abandon the international gold standard was, indeed, a wanton step. When Britain had left gold in 19S1, it had at least done so because the pressure on its gold reserves left it no alternative. But, despite Roosevelt's professed fears about a raid on American gold by Dutch banking interests, United States gold stocks were, in fact, capable of meeting normal foreign demands. The presidential decision seemed therefore to have a more sinister implication. It meant that American monetary policy was no longer to be the quasi-automatic function of an international gold standard; that it was to become instead the instrument of conscious national purpose. More than that, the step involved the repudiation of obligations to pay in gold long written into the "gold clause" of public and private contracts--an act which damaged all creditors who had hoped to make a killing out of the increase in the value of the dollar (203).

Long before, in 1790, the United States defaulted on its international and domestic obligations. The first government of the new nation enacted the Funding Act of 1790, which allowed Alexander Hamilton, secretary of the treasury, to take on the war debts of individual states. It was intended, in part, to create confidence in the new government. Altogether it amounted to $21.5 million dollars of assumed debt. According to John Carney over at CNBC: "Prior to the passage of the Funding Act, much of the debt was expected to default. It traded at deep discounts to face value. Once the act was passed, the value of the debt skyrocketed—because bondholders were sure they would be repaid by the new federal government. In fact, quite a lot of money was made by people who bought the state debt in anticipation of the Funding Act or with early notice that it had passed. Even at the time of the Founding, traders were profiting from informational asymmetries." That positive outcome had to do with the fact that the federal government was not itself in debt, but was only assuming state debt. That's why, says Carney, "the bonds rallied after the passage of the act."

Some weeks ago historian Julian Zelizer reflected on the political troubles that make the current economic crisis different. "There was a time when Congress worked differently," he observes. "During the committee era, which lasted from the 1910s through 1970s, bipartisan dealmakers were the kings of Capitol Hill. Legislating was seen as an art, and producing policy was the objective." Zelizer, writing on July 5th, hoped for a return to the deal making of recent history. That didn't happen, but a deal has been struck, nonetheless. Zelizer fittingly concludes: "But the fact that we have another example of what should be a routine decision turning into high-stakes gamesmanship should be a stark reminder that we need Congress to work better than this."