Hard Currency Case Study
AP US History Hard Currency: Sound Money or a Cross of Gold?
1) Since the amounts are fixed, deflation will cause the amount to be lower each month for him. If the rates were not fixed, he’d be angry but having fixed rates keeps his cost low and the lender loses out.
2) Even though farmers can buy goods cheaper, they have to sell theirs cheaper. Also the money it takes to ship will still be present. Buyers are needed as well and they don’t want to pay much if they don’t have much money either. If prices fall, they may have spent more on buying goods and now can’t sell their goods for a profit.
3) For a lender who receives payments, deflation can be good. If they lend someone $100 in gold, and now price drops, the borrower has to pay back
more gold to equal that $100 since each piece is worth less. Then, when there is a rebound of the economy, they have more gold which is worth now more than the original $100 they lent.
4) Had the government had a tight policy on money, farmers would not have been beneficial, they supported a loose money policy because it would help them regain some money if the government kept printing/making more money. The loose money policy would relieve pressure on debtors and promote economic activity.
-------------------------------------------------
5) Personally, there is not a problem with paper money rather than gold. This change may show progression. Realistically to believe that any country will remain the same is illogical. Countries need to advance to survive in the world; this may just be a sign of that. There may be a time that paper money is out and gold is back in, or maybe a third currency will arise, no matter what currency is in place, it must be working for that time period. Thus, there is no need on my part to worry.
1) Loose money policies were favored by the farmers and more rural people, tight money policies were favored but lenders and the urban people. By saying that he wants the masses to be prosperous, Bryan is supporting the poorer people. He leads to say that “prosperity will find its way up and through every class that rests upon it” which is saying the government should help out the poorest classes (Rural communities) and therefore he argues for loose policies.
2) Bryan argues against favoring the cities over rural areas by saying that the great cities rest upon the rural communities and their goods.
3) Bryan gained the vote of not every state, but of the rural states. McKinley won the urban and more industrialized states.
-------------------------------------------------
4) “Commercial interests and the laboring interests and all the toiling masses” all were for loose money. He says he has these groups “behind us” meaning backing him. They would fight for this because it would ultimately benefit them.
1) In both cases, the people owned land and needed to pay back what they borrowed, if either had fixed rates, it was not of concern, but most did not. These people had to pay a lot more to equal the same value. They were now giving more than they had been lent causing panic.
2) Someone who is selling when there is inflation can benefit because the worth has now increased since they bought the property. They will gain more money than they would normally or at a deflation.
3) There is always the chance for snowballing which can lead to a high rate of inflation very easily, which is why it is dangerous to attempt to engineer a small amount of inflation.
1) Since the amounts are fixed, deflation will cause the amount to be lower each month for him. If the rates were not fixed, he’d be angry but having fixed rates keeps his cost low and the lender loses out.
2) Even though farmers can buy goods cheaper, they have to sell theirs cheaper. Also the money it takes to ship will still be present. Buyers are needed as well and they don’t want to pay much if they don’t have much money either. If prices fall, they may have spent more on buying goods and now can’t sell their goods for a profit.
3) For a lender who receives payments, deflation can be good. If they lend someone $100 in gold, and now price drops, the borrower has to pay back
more gold to equal that $100 since each piece is worth less. Then, when there is a rebound of the economy, they have more gold which is worth now more than the original $100 they lent.
4) Had the government had a tight policy on money, farmers would not have been beneficial, they supported a loose money policy because it would help them regain some money if the government kept printing/making more money. The loose money policy would relieve pressure on debtors and promote economic activity.
-------------------------------------------------
5) Personally, there is not a problem with paper money rather than gold. This change may show progression. Realistically to believe that any country will remain the same is illogical. Countries need to advance to survive in the world; this may just be a sign of that. There may be a time that paper money is out and gold is back in, or maybe a third currency will arise, no matter what currency is in place, it must be working for that time period. Thus, there is no need on my part to worry.
1) Loose money policies were favored by the farmers and more rural people, tight money policies were favored but lenders and the urban people. By saying that he wants the masses to be prosperous, Bryan is supporting the poorer people. He leads to say that “prosperity will find its way up and through every class that rests upon it” which is saying the government should help out the poorest classes (Rural communities) and therefore he argues for loose policies.
2) Bryan argues against favoring the cities over rural areas by saying that the great cities rest upon the rural communities and their goods.
3) Bryan gained the vote of not every state, but of the rural states. McKinley won the urban and more industrialized states.
-------------------------------------------------
4) “Commercial interests and the laboring interests and all the toiling masses” all were for loose money. He says he has these groups “behind us” meaning backing him. They would fight for this because it would ultimately benefit them.
1) In both cases, the people owned land and needed to pay back what they borrowed, if either had fixed rates, it was not of concern, but most did not. These people had to pay a lot more to equal the same value. They were now giving more than they had been lent causing panic.
2) Someone who is selling when there is inflation can benefit because the worth has now increased since they bought the property. They will gain more money than they would normally or at a deflation.
3) There is always the chance for snowballing which can lead to a high rate of inflation very easily, which is why it is dangerous to attempt to engineer a small amount of inflation.