Question

describe the factors leading to the Economic Depression of the 1890s. What was the role of Governmental Regulation?

Answer 1

Answer: The economically depression of the 1890's was preceeled by a series of shocks that unclermined public confidence and weakeneel the economy, like the later Depression, the long depression affected different countries at the different times, at different rates, and some countries accomplished rapid growth over certain periods. However, the 1870s, 1880s, anel 18905 were a period of falling price levels anel sites of economic growth Significantly below the periods of following Between 18705 cmel 1890, "ron production in the five largest producing countries more them double from II milion tons to 23 miesion tons steel production increasecl twentyfold, anel sailrouel development boomed, But at the same time prices significantly if

in several markets collapsed the price of grein in 1894 was only a third wheet it had seen in 1867, anel the price of cotton fell by neamy so-60 percent in a just five years from 1872 to 1877. This colidepse provoked protectionism in many countries. while the production of iron clowbzeel between the 1870s and 1890s, so must fuctors of dealing to the economic depression of the 1890s. It was the governmenteel Reguleebiony. cy follows: 140 . At the time, however, the treg market wus blamed, with much of the 'se directed cet bunkers anel speculafiors, finunciers were seen ces having wrecked the economy through reuchess p speculation president Hoover came to be viewed as a laissez-fairs ideology who did nothing whice the economy fell deeper cmd deeper into clepression

Americem ceme to concluele thert 7 besic sobrem wees the pree merket and the solution was goverment oversight and restreint of financiers. omel financial market, Anel by the time of the Great Depression, America's finemcich System wuy controlled by the feeli The Feelercel Reserve isn't just any old government agenry Controlling any orel inclustry. The government tooks to mobilise goud to helel by the Australian Joint stock Bink while its payments were suspendeel, Covenor Dibbs pressureel the beric's liquidutor to accept notes insteael of coin as peryment som other bankes omel required the liquidator to pay gold for Australiam Joint stocks Bemk notes presented for payment by the other banks,