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American Heritage MagazineMay/June 1987    Volume 38, Issue 4
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TIME MACHINE
By Karolyn Ide

 
1837 One Hundred and Fifty Years Ago

On May 10 New York City’s banks took a drastic step to protect themselves from their panicked depositors, who for weeks had been withdrawing their funds in coin rather than in the unreliable paper currency. The banks announced that they would temporarily part with no more gold or silver. Other banks around the country followed suit. It could no longer be denied: America’s unstable economic structure had toppled. The crisis came to be called the Panic of 1837, a time when fortunes evaporated overnight, companies crashed by the hundreds, and massive unemployment left the working class bereft. It ended in a severe depression that lasted six years.

A ferment of unfavorable economic conditions brought on the collapse. Throughout the decade states had racked up large debts by building canals and railroads, and an imbalance of foreign trade had drained coin from the country. In 1836 a crop failure cut farmers’ buying power, and a financial crisis in England caused British creditors to call in loans. That summer President Andrew Jackson tried to curtail land speculation by ordering that public lands could be purchased with coin only; banks that financed land speculation suffered. The proportion of paper to coin mushroomed. So did inflation.

But before the disaster struck, investors enjoyed a frenzy of profit making. The diarist George Templeton Strong described their glory and then their fall: “Commerce and speculation here have been spreading of late like a card house, story after story and ramification after ramification, till the building towered up to the sky and people rolled up their eyes in amazement, but at last one corner gave way and every card that dropped brought down a dozen with it, and sic transit gloria mundi! How people have grown rich of late!…I often wondered where all the money had come from and how such a quantity of wealth had found its way into the country. But here’s the result of it.”

•June 24: The United States proclaims its first treaty with an Asian country, Siam.


 
1937 Fifty Years Ago

After knocking out his opponent with a sledgehammer right in the eighth round, Joe Louis became the world’s heavyweight boxing champion in Chicago’s Comiskey Park on June 22. “Louis was young, strong, and good,” recalled the defending titleholder, James J. Braddock. “Oh, he was good. And I did my best, but come the eighth round, I was finished.” When the final punch landed, Braddock buckled and kissed the canvas.

But Louis was more than a phenomenal boxer. Because he occupied a more prominent place in the news than any other black, he came to represent his race for both whites and blacks. At first Louis was unpopular among whites and subjected to the usual stereotypes, a fact reflected in the press, where Louis was nicknamed “the dark destroyer” and was quoted speaking “darkie” dialect. The Literary Digest called him “the kinkyhaired, thick-lipped … none-too-intellectual … shuffling, ex-Alabama pickaninny.” Before the Braddock fight, Life had this to say: “The challenger rarely smiles. Here Louis grins because a workout is over. He hates workouts and getting up.” But gradually Louis’s gentlemanliness and his continuing chain of victories eroded the stereotype, and the press—and white America—began to grant the boxer the respect that was his due.

In the black community, Louis had diehard fans from the start. The night of his victory against Braddock, thousands of overjoyed men and women poured from their homes into the streets of Harlem and Chicago’s South Side. Malcolm X described it: “All the Negroes in Lansing, like Negroes everywhere, went wildly happy with the greatest celebration of race pride our generation had ever known. Every Negro boy old enough to walk wanted to be the next Brown Bomber.”

Louis went on easily to conquer his arch-rival, the German Max Schmeling. In 1949 he retired, having defeated all of his twenty-five challengers, most of them by knockout.

•May 6: The German dirigible Hindenburg burns at its mooring tower in Lakehurst, New Jersey, killing thirty-six and ending public interest in airship travel.

•June 7: The movie actress and sex symbol Jean Harlow dies at age twentysix of kidney failure.


 
 
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