Tuesday, July 12, 2016

History: The Year is 1825

I've uploaded year 1825 to the TSP Wiki...


Here are some one liners...

The Panic of 1825 and 1987 -- The Bank of England calls on the Parliament to fix these financial problems, but they are in recess so that Bank fixes the problem itself.

The Search for High-Speed Communication -- Samuel Morse receives word that his wife is ill, then she's dead, then she's buried. There has to be a better way to get important information quickly.

A Quiet End to a 470 Year Riot -- The mayor refuses to make the annual city payment to the college for a riot that occurred 470 years ago.

In Other News -- Baseball, aluminum, and the dead letter office.

The Panic of 1825 and 1987

It is December of 1825. After the Panic of 1819 in America, the Bank of England loosened its policy on lending money to country banks outside of London. This policy propped up the British pound. Oddly, this easy money policy in England encouraged the same lending behavior that caused the Panic of 1819. Now there is a run on the banks after several prominent British banks close their doors. In all, 70 banks collapse. The Bank of England, the "lender of last resort" has refused to lend money as a last resort! The financial community calls on the government to lend money from the Treasury, but that would take an Act of Parliament and they are in recess for Christmas. The Bank of England's reserves are dwindling fast. By next March they will have lost several million pounds in assets. Someone must do something and if government will not act, the Bank of England must. So they do. To the modern mind, this will seem obvious, but they lend money based on the value of goods rather than limiting lending to assets of gold and silver. England is saved... without government intervention. [1] [2] [3]
My Take by Alex Shrugged
In 1987, stock markets across the world collapsed. It was called Black Monday. The Dow Jones average dropped 508 points. As a percentage of the Dow Jones, it remains the largest single-day drop in history. The American financial community demanded that President Reagan DO SOMETHING! Every President chooses a past President to model himself after, and President Reagan chose Calvin Coolidge. Not only did "Silent Cal" say that "the business of America is business," but he also said that "if you see ten troubles coming down the road, you can be sure that nine will run into the ditch before they reach you..." In other words, if you are patient, most problems will fix themselves. President Reagan refused to "fix" the stock market, so the private sector was on its own. The Fed did nothing and encouraged banks to do nothing but normal lending at the normal rates. The banks absorbed the losses, but the real value was the calming effect of normalcy. By doing nothing, people took the time to think rather than panic. Eventually computer trading was blamed, and "speed bumps" were put in place, but that really wasn't the problem. It was a series of events mostly having to do with oil futures and a stock market in serious need of a correction. [4]

The Search for High-Speed Communication

At this point Samuel Morse is best known for his talent as an artist. He completes his painting of Lafayette this year to take advantage of the interest in Lafayette as he tours across America remembering the good old days. Morse starts on yet another work when he receives an urgent message from his father. Apparently Morse's wife is ill. Then he receives another message, shortly thereafter. His wife is dead! By the time Morse reaches home, his wife has been buried and the funeral is long over. He is naturally upset and wonders why there isn't a faster way to communicate a quick, simple message over long distances. [5] [6]
My Take by Alex Shrugged
France already had a mechanical semaphore system at the time, but in 1832, Samuel Morse met a man who understood the mysteries of electromagnetism and by 1838 the first telegraph message was sent using the Morse Code system. By 1851, Morse Code was the accepted standard across Europe and a survey was begun to explore the feasibility of laying a telegraph line across the Atlantic Ocean. In fact, the War of 1812 might never have happened if the US Congress had realized that the English Parliament was voting to discontinue shanghaiing American sailors. The US vote to go to war occurred almost simultaneously with Britain's vote to take the US grievance seriously. [7]

A Quiet End to a 470 Year Riot

In 1355 a tavern brawl turned into a riot between the students of Oxford and the townspeople. It was called the Saint Scholastica Day riot and after the King of England sided with the students, a new charter was drawn up to define the relationship between Oxford University and the town. The Mayor was compelled to pay 5 shillings and 3 pennies per dead student each year and swear allegiance to the Chancellor in an annual ceremony. It may seem like a quaint tradition, but the implied insult is too much to take. After almost 470 years, the Mayor refuses to pay. That is the end of it, but Oxford University representatives will remain on the city council until 1974. [8] [9] [10] [11] [12]
My Take by Alex Shrugged
In many college towns the local college will takes precedence and the townspeople often resent it. After all, the student population is young, transitory and often disruptive, but the local residents want long-term stability and order. I live near Austin, Texas which is a college town. I'm not exactly a fuddy-duddy, but I would like to live through another day. As I was driving along the street, a truck filled with drunken college students barreled down the road going the wrong way and coming right at me. They missed. I am a forgiving man, especially with drunks, but they scared the living snot out of me. They were headed toward the police station. I hope they made it.

In Other News

  • Baseball, is played once a week now. Details are vague, but it is gaining in popularity. [13] [14]
  • Aluminum is produce for the first time. It is derived from aluminum chloride. [15]
  • The US Postal Service creates the Dead Letter Office. Years later this office will verify that Santa Claus actually exists! Or maybe that was a movie. [16] [17]

This Year on Wikipedia

Year 1825, Wikipedia.

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