The stock market crashed, prompting the Panic of 1893 and leading to the bankrupting of the United States Treasury. The already weakened economy collapsed as people withdrew deposited funds and banks failed. Exports also declined and unemployment grew.
At Roosevelt’s urging, Congress passed the Emergency Banking Bill, which took the nation off the gold standard, allowed some Federal Reserve System banks to reopen, and permitted the Federal Reserve and the Reconstruction Finance Corporation to provide funds to buy stocks in chosen banks.
Jeremi Suri, a historian at the University of Texas at Austin, argues that Americans have never been isolated from international politics and military conflicts, but rather have projected power on the world stage since before the Revolutionary War. Yet during the late 19th century, Suri notes, American involvement abroad grew profoundly deeper, broader, and more militaristic.
There certainly can’t be a greater Grievance to a Traveler, from one Colony to another than the different values their Paper Money bears.
—an English visitor, ca.1742
Students use different kinds of paper money to purchase items to learn about the problem in colonial times when each colony had its own currency. The students will find that it is nearly impossible to complete tasks due to the confusion.