back to 1835!

Tom Lehman uswa12 at
Wed Aug 4 11:03:58 PDT 1999

Yes, Doug your voicing the consensus opinion, and an opinion that I myself have expressed in writing in such esteemed publications as the Lorain Morning Journal and the Elyria Chronicle -Telegram. :o)

I guess you could look at the 1830's tarriff nullification crisis---the tariff being the federal governments main source of revenue back then---sort of like the present proposed Republican tax cuts. If memory serves me correctly the tarriff was cut by 50% after the nullification crisis.

Paula, Glenda's website is and her email address is usainc at Glenda is looking forward to visiting with you for business or fun.

Tom Lehman

Doug Henwood wrote:

> Tom Lehman wrote:
> >The devil in this whole deal is going to be in the details---the mechanics of
> >how it is going to done.
> >
> >
> >
> >Comparing 1835 to today would be a pretty tough nut to crack! Not too many
> >people really have a handle on the economic power struggles of the 1830's---I
> >sure as hell don't and I don't think in all honesty even the experts do. The
> >whole power struggle between Andrew Jackson and the Bank of the United States
> >known as the "BUS" and other issues of the time like tariff nullification,
> >removal of the American Indians and as Doug has pointed out the "internal
> >improvements" mania all made for a very fluid and hard to understand in
> >retrospect politics with political sides being changed all of the time by the
> >players.
> That debt reduction was only one of six major episodes of debt
> reduction. The panics of 1819, 1857, 1873, and 1893 were all preceded
> by periods of debt reduction, as was the 1929 crash. Of course, it
> may not be a matter of cause & effect: the surpluses the funded the
> debt reduction could have been reflections of the fat phase of the
> business cycle - I just don't enough of the history of the 19th
> century to tell. But it's hard to find a precedent for nominal debt
> reductions coming before a boom.
> Doug

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