That the radical southern state regimes had

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that the Radical southern state regimes had instituted during the initial years of Reconstruction. The Liberal Republican Party failed to include women’s suffrage in the party platform it adopted in 1872. e. The Liberal Republicans were not motivated by a desire to strengthen the federal government’s regulation of big business. They supported the laissez- faire, hard-money, anti-silver deflationary economic policy of the regular Republican Party, which consistently favored creditors over debtors, although the Liberal Republicans did advocate a moratorium on land grants to railroads. Question 3 a. A ripple effect from similar, concurrent economic panics that gripped Germany, France, Great Britain, Austria-Hungary, and Russia exacerbated the economic crash that the United States suffered in 1873. b. Overproduction of agricultural and industrial goods, the speculative laying of unsustainable amounts of railroad track, and the sinking of more mines than the existing gold, silver, and coal markets could absorb represented one of the causes of the panic of 1873. c. A series of bank failures in 1873, resulting from imprudent unsecured loans made by banks who had agreed to finance many speculative, dubiously promoted, and unsustainable business ventures, such as overbuilt railroads, contributed to the outbreak of the economic panic of 1873. Bank depositors lost their entire life’s savings when these banks failed during the panic of 1873, and these bank failures exacerbated the economic strains suffered by debtors. d. The failure of profits to materialize from the millions of dollars poured into speculative and unfruitful business investments meant that bank loans and bonds went unpaid when they became due, spurring the collapse of the whole credit-based economy in 1873. e. Correct answer. The Greenback Labor party was formed in 1878, five years after the panic of 1873, as a political backlash by farmers and other debtor groups against Republican hard-money policies and to promote the inflationary issuance of greenbacks, paper money, to raise prices and make debts easier to pay. Question 4 a. The hard-money policies of the Republicans did raise the value of greenback dollars up to their full face value; however, the exchange rate values of the American dollar and foreign currencies remained pegged to pre-set, fixed quantities of gold established by each government. Consequently, the value of the American dollar against foreign currencies was not influenced by market forces of supply and demand, but by the fixed gold exchange rate standard that each country set for its own currency. b. The Republican hard-money policies in the 1870s contracted, on a per capita basis, the amount of money in circulation between 1870 and 1880. This
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deflationary policy restored the government’s credit rating, and raised the greenbacks up to their full face value.
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