Follow the Yellow Brick Road

"My, people come and go so quickly here!"
--Dorothy (The Wizard of Oz)

New knowledge for me here in the form of Rothbard's explanation of the dynamics surrounding the 1896 election. The election had become a referendum on the gold standard. During the early 1890s, the Democratic Party had largely been hijacked by a populist, infationist mindset led by presidential contender William Jennings Bryan.

Old School Democrats (the party of Jefferson), who were fiercely devoted to gold standard and sound currency, soured to this trend. The JP Morgan interest was part of the Old School Democrat gold standard crowd, although this group was interested in some government backing for a more 'elastic currency' to support the banks--particularly during times of crisis.

The Republican Party, dating back to its Whig and Lincolnian origins, was partial to inflation and central banking as well. By the late 1890s Rockefeller forces had become highly influential in shaping the Republican trajectory.

Seeing that the Democratic national convention of 1896 was likely to be won by the populists, Morgan reps approached Rockefeller reps to cut a deal. Morgan interests would support the Republican presidential candidate, William McKinley, provided that McKinley and the Republicans would pledge allegiance to a gold standard.

And so it went...

The gold standard pledge, of course, wasn't literal because plans were already in the works for a 'managed currency' and an institution to manage it. Such plans were antithical to the concept of a gold standard.

position in gold