THIS DAY IN ECONOMIC HISTORY

House Banking Outrage

The House Ethics Committee released a report of the 22 House representatives that had over drafted from the House bank; public outcry caused 53 representatives to resign.

The Mint Is Created

Congress passed the Coinage Act; Developed by Treasury Secretary Alexander Hamilton, this act founded the Mint which was built in Philadelphia, and created a decimal based currency.

Tricky Dick Finally Pays Up

President Nixon agreed to pay back taxes of $432,000 after word leaked that he had been dodging the full income tax on his $200,000 salary.

New Beginnings

Microsoft is founded as a partnership between Bill Gates and Paul Allen in Albuquerque, New Mexico.

The Fox Channel Hits The Big Time

On this day, the up and coming Fox television station debuted its first prime time sitcoms, including "Married with Children."

Dow Reaches Historic Mark

For the first time in its history, the Dow Industrial Average eclipsed 9,000 points when it closed for the day.

U.S. Gets Victory Against The European Union

The World Trade Organization (WTO) ruled against the European Union, stating that it broke international rules by treating Latin American banana growers and their their US supporters unfairly as compared to their competitors in Africa and the Caribbean.

Truman Takes Control Of Steel Industry

In an attempt to thwart a potentially crippling strike, president Harry S. Truman took control of the U.S. steel industry. His moved proved to be controversial, and the Supreme Court eventually ruled that he had overstepped his authority.

American Airlines Moves To Become # 1 Airline

With the purchase of bankrupt Trans World Airlines, American Airlines became the United States' largest domestic airline.

Rickey Signs Jackie Robinson

On this day, Brooklyn Dodgers general manager Branch Rickey purchased the contract of Jackie Robinson, who went on to become the first African-American to play in the Major Leagues.

First Cigarette Tax Imposed

The state of Iowa became the first U.S. state to levy a tax on cigarettes.

High Court Upholds National Labor Relations Act

The Supreme Court narrowly upheld the National Labor Relations Act (Wagner Act), signaling a major victory for workers. Among other things, the Wagner Act protected workers rights to organize and go on strike.

Discount Store Pioneer Born

On this day, Frank Winfield Woolworth was born in Rodman, New York. Woolworth's first discount store, named the "Great 5 Cents Store," opened in 1879. It was a forerunner for his later stores, named "Woolworth's."

J.C. Penney Opens Its Doors

Department store giant J.C. Penney began operations in its first store, located in Kemmerer, Wyoming.

The Titanic Sinks!

Nearly 1,500 people died when the infamous, ill-fated voyage of the luxury ocean-liner 'Titanic' ended when it sunk after striking an iceberg. The ship, supposedly an engineering wonder, lacked many of the basic saftey features that are required by law today.

Congressmen Overdraw Bank Accounts

The U.S. House of Representatives released a list of 303 Congressmen who had overdrawn their offical House bank accounts.

Ford Mustang Hits The Streets

The Ford Motor Company unveiled its newest model, a sports car called the "Mustang." The Mustang has since become a synonymous the Ford brand name and with American-made sports cars in general.

First Laundromat Opens

The first U.S. laundromat opended in Fort Worth, Texas. It operated with the novel idea of renting washing machines for public use.

U.S. Abandons Gold Standard

The gold standard, which directly linked the American dollar to its worth in gold, was abandoned on this day during the Great Depression. Today, no currency in the world is redeemable for its worth in gold, as was once the standard.

U.S. Age Of Protective Tariffs Begin

On this day in 1818, congress passed a tariff that ushered in an age of United States protectionist policy that lasted until World War II. Urged by President Monroe's call to uphold the fiscal integrity of domestic industry congress agreed to pass sharp tariffs of iron and textiles from other countries.

Famed Economist Dies

John Maynard Keynes, who some credit as the father of macroeconomics, died on this day at the age of 62. His idea that governments should act to level out the booms and busts of the economic cycle has since become a staple of many governmental policies.

The Real Oklahoma Sooners

When the cannons sounded at exactly 12:00 noon, thousands of settlers rushed into what is now Oklahoma to claim cheap land previously set aside as Indian Territory.

New Coke Introduced

The Coca-Cola Company announced that it was changing the formula for Coke, a project it had kept a secret for years. However, the "New Coke" never caught on with soda drinkers, and the whole project was a huge flop. Coke returned to its original recipe less than 3 months later.

Violence Takes Over In U.S. Mines

On this day in Wardner, Idaho a strike by mine workers to get a pay raise to $3.50 per day turned violent, resulting in $250,000 of damaged and destroyed property.

Budget Passes With Ease

After the previous year's government shutdown, and seven long months of negotiations, the Republican dominated Congress passed President Clinton's budget in overwhelming fashion.

Woolworth's Hits The Skids

After posting first quarter losses of $24 million and $37 million the previous year Woolworth's, a traditionally successful retailer, was forced to close many of its discount stores. This restructuring allowed the company to continue operating its other firms like Foot Locker.

Railroad Giants Merge

With the transportation climate in the U.S. relying more on the car railroads were hit hard. This forced the Pennsylvania and New York Central Railroads to merge. On this day the merger was finalized giving the newly named Pennsylvania and New York Central Transportation Company $4 billion in assets. This marked the biggest merger in U.S. corporate history at the time.

Ike Gives Up Command

On this day in 1952 Gen. Dwight D. Eisenhower, gave up his command of all NATO forces under pressure to run for President. He gave in to the requests and was elected President in November of 1952.

From Spender To Lender

After WWI the U.S. went from owing billions to Europe, to Europe owing billions to them. On this day in 1926 France and the U.S. made a deal writing off sixty percent of the $4 billion the French owed. The remaining debt was to be paid off over sixty-two years, at 1.6% interest.

A "Steal" Of A Deal

Although officially signed on May 2 the Louisiana Purchase was actually finalized on this day in April. For the price of 3 cents an acre, the U.S. purchased 828,000 square miles of land from France for the total price of $15 million. This purchase doubled the size of the fledgling nation.