Customer Reviews

When Washington Shut Down Wall Street: The Great Financial Crisis of 1914 and the Origins of America's Monetary Supremacy

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In Kazuo Ishiguro's novel The Remains of the Day, a blue-blood guest unmercifully grills James Stevens, the head butler at an English estate. The pompous guest is trying to demonstrate that uneducated people should not have the vote. "My good man," he asks, "do you suppose the debt situation regarding America is a significant factor in the present low levels of trade? Or...is the abandonment of the gold standard...at the root of the matter?" Stevens, aware that the question is meant only to baffle him, replies that he has no idea. Poor Stevens! Anyone without a degree in international finance would have an equally difficult time answering such an abstruse question. That's why this intriguing business history book by William L. Silber is so worthwhile: He brings global finance to life by spotlighting America's 1914 money crisis and by explaining how then-U.S. Treasury Secretary William McAdoo used this portentous episode to establish the nation's financial supremacy. We suggest you read this illuminating work of economic history to understand the seminal events that established U.S. monetary policy.

This book is a great read. The topic is fascinating (to me, at least). Some of the material is a bit intricate, but the author does a great job of explaining it. He liberally uses footnotes to explain details which to an economist might be pedestrian but to a lay person such as myself are not obvious. (One ongoing topic is the exchange rate between pounds sterling and dollars, and how that relates to the price of gold and the cost of shipping gold between the UK and the US. He does a great job of walking the reader through the process and the arithmetic.) I highly recommend this book, and particularly recommend it to anyone who wonders what the Federal Reserve Board really does.