THIS DAY IN ECONOMIC HISTORY

The Revenue Act And The IRS

Congress signed into law the Revenue Act, which included an income tax and the creation of the Bureau of Internal Revenue, the predecessor of the IRS.

Sherman Anti-Trust Act Passed

On this day in 1890, the Sherman Anti-Trust Act is passed. This bill was established to make sure contracts were not made between businesses or other countries that impeded open competition for American businesses. It was a direct blow to the large monopolies that existed at the time, calling for their disbandment.

Railroads Merge

On this day in 1996, railroad giants Union Pacific and Southern Pacific merged after a year of legal and political problems. Many voiced concerns over this merger, especially shipping merchants and consumers who feared this would curtail competition making transportation costs higher.

Treasury Bill Passed

On this day in 1840, the Independent Treasury Act was passed. A powerful interest group called the "Locofocos" supported this bill, along with President Van Buren. The bill met much opposition but finally passed on this day in 1840. This bill established an "independent" treasury responsible for government transactions.

The Wagner Act

On this day in 1935, President Franklin Roosevelt signed the Wagner Act into law. This bill was named after its sponsor Senator Robert Wagner and was supported by Congress that saw it as very progressive. Although it had popular support, President Roosevelt was not a supporter and decided to push through his National Industry Recovery Act (NIRA) instead. The Supreme Court eventually struck down NIRA for being unconstitutional. With the President's bill struck down, Roosevelt signed into law the popular Wagner Act. This act was specifically aimed at giving workers rights to organize and cut off unfair labor practices by management.

Dupont Diversifies

On this day in 1981, the Dupont chemical company with a mindset to diversify announced it planned to merge with Houston based oil company Conoco Inc. The merger was valued at $7 billion and at the time was the biggest merger between two corporations in history. This relationship didn't last forever in the late 1990's Dupont started selling its shares of Conoco Inc. to the public.

Bryan And Silver Nominated By Democrats

On this day in 1896 at the Democratic Convention, William Jennings Bryan was nominated by his party to be the next president of the United States. The main issue for the Democrats during this presidential election was the matter of using silver as part of the national currency. The Republicans wanted to keep using the gold standard that was already in place. In his acceptance speech Bryan sent the democratic delegates into frenzy by stating, "You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold."

Boss Tweed Exposed

On this day in 1871, William "Boss" Tweed's corrupt hold on New York City was exposed by a series of articles published by the New York Times. Tweed was able to steal almost 200 million dollars from the city by using his supposedly humble role as Head of the Department of Public Works to set up kickbacks, dummy vouchers, and false contracts. Tweed almost managed to bankrupt New York City through all of his corruption. He was later put on trial and was sentenced to 12 years in prison. He escaped and journeyed to Cuba then Spain where he was found and sent back. He died in prison in 1878.

Bloody Strike Put Down

On this day in 1892, the state of Pennsylvania sent in 7,000 troops to restore order to riots that were taking place outside of Andrew Carnegie's Homestead steel plant. The labor strike that turned into a bloody riot was centered on receiving better pay and stronger union influence. Andrew Carnegie was conveniently out of the country when this strike happened and left business associate Clay Frick with the task of dealing with it. Frick dealt with the situation by enlisting three hundred Pinkerton Agents to provide security for the non-union workers he hired to keep the plant running. The army of strikers turned violent and a bloody shootout between agents and strikers ensued on July 2, leaving seven agents and nine strikers dead. Frick then called upon the state of Pennsylvania for help. The state responded by sending 7,000 soldiers, which effectively quelled the strike. In November the Union conceded to defeat by calling off the strike; Carnegie responded by firing all the strikers and then blacklisting them.

Jackson Gets Revenge

On this day in 1832, President Jackson facilitated a little revenge on many of his political enemies by vetoing the national bank's request for a new charter. At the helm of the bank was a man named Nelson Biddle, who saved the bank when it was on the verge of collapse. Biddle turned the bank around and enjoyed many years of prosperity and influence. In the 1824 and 1828 elections Biddle used his influence to help squelch Jackson's bid for the presidency. Jackson did not forget these actions and after vetoing the bank's charter he led a crusade to make the nation's banking system privatized. This effectively put an end to Biddle's bank.

Coke's Bad Blunder

On this day in 1985, soda giant Coca-Cola unveils plans to put "Coca-Cola Classic" on the market. In actuality "Coca-Cola Classic" is the original soft drink that put the soda company on top. Earlier in the year the Coca-Cola Company decided to change recipes for their flagship beverage after a series of positive tests conducted for the new recipe. The tests did not effectively gauge how the public would accept the new "Coke" and after harsh reviews and declining sales Coke decided rather than admit defeat over their new soda they would remarket the original recipe by renaming it "Coca-Cola Classic." The company did not completely forsake their new recipe though; they decided to sell it simply as "Coke."

Strikes Put On Trial

On this day in 1810 the New York Branch of the Journeymen Cordwainers were put on trial for illegally conspiring during a strike. This trial was seen as crucial to the young movement of labor unions that were starting to pop up around the nation. The union members put on trial were found guilty and were ordered to pay punitive fines of $1. This defeat for the union workers did not deter the labor union movement. In 1842 the Massachusetts Supreme Court overturned the legal conflagration of strikes and conspiracies.

General Motor Deflates

On this day in 1998 things went from bad to worse for auto giant General Motors (GM). The company was already dealing with a large workforce strike when they were forced to recall 800,000 vehicles due to malfunctioning airbags. The problem was the super sensitive airbag deployment device that caused the airbags to inflate by the smallest provocation. This blow to the company caused GM to lose 1.5 points in the stock market.

Summer Of Strikes

On this day in 1877, Baltimore railroad workers, fed up with salary reductions, went on strike. The state militia was called in and violence quickly erupted, killing nine strikers. After the violence against the strikers, sympathetic workers from all around the country went on strike themselves. The summer of 1877 was dubbed the "Summer of Strikes."

Pentagon Leans On Lockheed

On this day in 1998 the Pentagon threatened to bring the defense contractor Lockheed Martin to court for the announced merger with fellow defense contractor Northrop Grumman. The Pentagon feared this $10.7 billion dollar merger would start a monopoly and hurt competition. Lockheed feared any legal battle with the Pentagon and quickly backed out of the merger.

Caught Red Handed

On this day in 1998 Health Care Services Corporation agreed to pay $140 million to the United States government for eight different counts of trying to defraud the government. The company tried to block government attempts to audit their records and shredded and mishandled claims to try and manipulate and obscure the evidence. Along with the fine the company was forced to sign a strict corporate integrity agreement and is constantly under the eye of the government.

Federal Farm Loan Act Passed

On this day in 1916, America's farmers got financial relief as Congress passed the Federal Farm Loan Act. The legislation called for the creation of a land bank that would give out loans to farmers who really needed funds to preserve and upgrade their crops. The passage of the bill was celebrated by the nation's farm owners, who had long struggled to secure equitable loans from commercial banks.

Car Seats And More

On this day in 1996 car seat manufacturer Johnson Control Inc. made a bid to become the leader in luxurious car interiors by bidding $1.35 billion to acquire Prince Holding Corporation. Prince Holding Corporation was known for their "surprise and delight" attitude when it came to car luxuries. In a statement shortly after the merger it was estimated that the two companies combined muscle would raise Johnson's annual sales from $850 million to $6 billion.

Seneca Falls Convention Begins

At the Wesleyan Chapel in Seneca Falls, New York, a women's rights convention convened with almost 200 women in attendance. The convention was organized by Lucretia Mott and Elizabeth Cady Stanton. As women, Mott and Stanton were barred from the convention floor, and the common indignation that this aroused in both of them was the impetus for their founding of the women's rights movement in the United States. On this day in 1848, at Stanton's home near Seneca Falls, the two women sent out a call for a women's conference to be held at Seneca Falls.

The Pullman War

On this day in 1894, the Pullman Palace Car Company was embroiled in what proved to be one of the most bitter strikes in American history. The strike was a direct response to company chief George Pullman and his hardball tactics, most notably his decision in the midst of the Depression of 1893 to preserve profits by slashing wages and hiking up workers' rents. A band of frustrated employees begged Pullman to ease rents and restore wages, but he did nothing of that sort. Later the workers fired back at their avaricious boss by calling a strike.

Aswan High Dam Completed

After 11 years of construction, the Aswan High Dam across the Nile River in Egypt was completed on July 21, 1970. More than two miles long at its crest, the massive $1 billion dam ended the cycle of flood and drought in the Nile River region, and exploited a tremendous source of renewable energy.

U.S. Overcomes Bretton Woods

During the summer of 1944, representatives from forty-four nations gathered in Bretton Woods, New Hampshire, to hash out the global finances for the remaining half of the twentieth century. The three-week conference was a striking display of the United States' swelling political and fiscal might. For one, the U.S. used Bretton Woods as a stage to promote the dollar as the standard currency for international transactions. Though some European leaders initially disliked the idea, American officials stood their ground and the dollar eventually won the day. By the time the conference closed on July 22, the delegates had voted to create both the World Bank and International Monetary Fund (IMF), institutions which sealed America's role as the leader of the post-war economic order.

War On Poverty

On this day in 1964, U.S. President Lyndon B. Johnson began watching over the passage of a landmark civil rights bill, and also marshaled the government's forces in a so-called "War on Poverty." Towards the end of the "War on Poverty", he intended to utilize federal funds to train indigent Americans and offer them financial aid.

Merger Mania

Merger mania seeped into international waters on this day in 1998, as Enron Corporation made a deal to acquire British-based Wessex Water, PLC. Enron Corp managed to make the deal for the sum of $2.2 billion. This amount was reportedly paid in cash.

The Fracas In Fall River

Throughout the nineteenth and early twentieth centuries the booming textile mills in Fall River, Massachusetts were lightning rods for labor action. On this day in 1904 Mill managers and textile honchos, who had first descended upon Fall River in 1811, pushed their largely female work force to toil for long hours in abysmal conditions. By 1871, Fall River had become one of the textile capitals of the United States and many of the mill owners had raked in hefty profits. The prosperity, though, didn't trickle down to the textile workers, prompting them to stage a series of increasingly bitter strikes. The strikes stretched on for most of the late summer and, though they hardly toppled the textile owners, the workers helped force the situation at mills, as well as the plight of child laborers, onto the national stage.

FBI Founded

On July 26, 1908, the Federal Bureau of Investigation (FBI) was born when U.S. Attorney General Charles Bonaparte ordered a group of newly hired federal investigators to report to Chief Examiner Stanley W. Finch of the Department of Justice. One year later, the Office of the Chief Examiner was renamed the Bureau of Investigation, and in 1935 it became the Federal Bureau of Investigation.

Fiscal Frustration

On this day in 1933, the Great Depression had long since spread from the shores of the United States to vast areas of Europe. Earlier in the decade, America's decision to raise revenues by adopting hefty tariffs had shattered Europe's fragile finances.

Federal Bank Follies

On this day in 1841, forces from the national bank movement received a glimmer of hope as the Senate narrowly passed the Fiscal Bank Bill. This bill called for the creation of the Fiscal Bank of the United States, a federal financial institution to be located in the District of Columbia.

Bonus Army Marches Home

On this day in 1932, a group of WWI Vets who called themselves the "Bonus Army" marched home. These vets were promised that they would receive a cash bonus in 1945 for serving in the war, but they were in dire need of the money now because of the depression. They were pushing for a bill to be passed by the legislation that would make an advanced payment on their cash bonus, but this fell through.

First Saturn Plant Built

On this day in 1985 the Saturn Corporation announced that their first plant would be built in Spring Hill, Tennessee. In 1982, General Motors initiated a small car project code-named Saturn.

Milton Friedman Born

On this day in 1912, Milton Friedman was born. He was New York's leading conservative economist. Friedman became the leading light of the "monetarist" school, which dismissed the government's role as the supposed engine of business. Friedman was honored with the Nobel Prize for Economics in 1976.