The Stevenson Plan , also known as the Stevenson Restriction Scheme , was an effort by the British government to stabilize low rubber prices resulting from a glut of rubber following World War I .
137-424: In the early 1900s, increased reliance on the automobile and the use of rubber in common products such as boots were driving demand for rubber. At that time rubber was made from naturally occurring latex extracted from certain plants. The most important of the plants for latex production is the rubber tree, Hevea brasiliensis whose cultivation is restricted to tropical climates . At this time about 75% of rubber
274-634: A deflationary spiral started in 1931. Farmers faced a worse outlook; declining crop prices and a Great Plains drought crippled their economic outlook. At its peak, the Great Depression saw nearly 10% of all Great Plains farms change hands despite federal assistance. At first, the decline in the U.S. economy was the factor that triggered economic downturns in most other countries due to a decline in trade, capital movement, and global business confidence. Then, internal weaknesses or strengths in each country made conditions worse or better. For example,
411-418: A silver standard , almost avoided the depression entirely. The connection between leaving the gold standard as a strong predictor of that country's severity of its depression and the length of time of its recovery has been shown to be consistent for dozens of countries, including developing countries . This partly explains why the experience and length of the depression differed between regions and states around
548-792: A cultivar of the Kazakh dandelion ( Taraxacum kok-saghyz ) that is suitable for commercial production of natural rubber. In collaboration with Continental Tires , IME began a pilot facility. Many other plants produce forms of latex rich in isoprene polymers, though not all produce usable forms of polymer as easily as the Pará. Some of them require more elaborate processing to produce anything like usable rubber, and most are more difficult to tap. Some produce other desirable materials, for example gutta-percha ( Palaquium gutta ) and chicle from Manilkara species. Others that have been commercially exploited, or at least showed promise as rubber sources, include
685-447: A fiber, sometimes called 'elastic', had significant value to the textile industry because of its excellent elongation and recovery properties. For these purposes, manufactured rubber fiber was made as either an extruded round fiber or rectangular fibers cut into strips from extruded film. Because of its low dye acceptance, feel and appearance, the rubber fiber was either covered by yarn of another fiber or directly woven with other yarns into
822-510: A form of assisted biological coagulation. Little care is taken to exclude twigs, leaves, and even bark from the lumps that are formed, which may also include tree lace. Earth scrap is material that gathers around the base of the tree. It arises from latex overflowing from the cut and running down the bark, from rain flooding a collection cup containing latex, and from spillage from tappers' buckets during collection. It contains soil and other contaminants, and has variable rubber content, depending on
959-604: A former privately run bank, bearing no relation to the U.S. government (not to be confused with the Federal Reserve ). Unable to pay out to all of its creditors, the bank failed. Among the 608 American banks that closed in November and December 1930, the Bank of United States accounted for a third of the total $ 550 million deposits lost and, with its closure, bank failures reached a critical mass. In an initial response to
1096-752: A given strain, thereby increasing the elastic force constant and making the rubber harder and less extensible. Raw rubber storage depots and rubber processing can produce malodour that is serious enough to become a source of complaints and protest to those living in the vicinity. Microbial impurities originate during the processing of block rubber. These impurities break down during storage or thermal degradation and produce volatile organic compounds. Examination of these compounds using gas chromatography / mass spectrometry (GC/MS) and gas chromatography (GC) indicates that they contain sulfur, ammonia, alkenes , ketones , esters , hydrogen sulfide , nitrogen, and low-molecular-weight fatty acids (C2–C5). When latex concentrate
1233-467: A greater reduction in credit. On 5 April 1933, President Roosevelt signed Executive Order 6102 making the private ownership of gold certificates , coins and bullion illegal, reducing the pressure on Federal Reserve gold. British economist John Maynard Keynes argued in The General Theory of Employment, Interest and Money that lower aggregate expenditures in the economy contributed to
1370-600: A modern industrial city handled shortages of money and resources. Often they updated strategies their mothers used when they were growing up in poor families. Cheap foods were used, such as soups, beans and noodles. They purchased the cheapest cuts of meat—sometimes even horse meat—and recycled the Sunday roast into sandwiches and soups. They sewed and patched clothing, traded with their neighbors for outgrown items, and made do with colder homes. New furniture and appliances were postponed until better days. Many women also worked outside
1507-750: A modern war. Around 1920 the British Rubber Growers Association turned to then Secretary of State for the Colonies , Winston Churchill , for help. Churchill initiated a committee of inquiry , the Rubber Investigation Committee, consisting primarily of Association members and chaired by Sir James Stevenson , to come up with a plan to stabilize rubber prices. The committee came up with the Stevenson Plan which would stabilize prices by limiting
SECTION 10
#17327945385301644-402: A monetary contraction first-hand were forced to join the deflationary policy since higher interest rates in countries that performed a deflationary policy led to a gold outflow in countries with lower interest rates. Under the gold standard's price–specie flow mechanism , countries that lost gold but nevertheless wanted to maintain the gold standard had to permit their money supply to decrease and
1781-432: A petroleum refinery or other natural incineration processes, is sometimes used as an additive to rubber to improve its strength, especially in vehicle tires. During vulcanization, rubber's polyisoprene molecules (long chains of isoprene) are heated and cross-linked with molecular bonds to sulfur, forming a 3-D matrix. The optimal percentage of sulfur is approximately 10%. In this form, the polyisoprene molecules orientation
1918-435: A point where it shares properties of both; i.e., if it is heated and cooled, it is degraded but not destroyed. The final properties of a rubber item depend not just on the polymer, but also on modifiers and fillers, such as carbon black , factice , whiting and others. Rubber particles are formed in the cytoplasm of specialized latex-producing cells called laticifers within rubber plants. Rubber particles are surrounded by
2055-567: A serious issue in the 1930s. Support for increasing welfare programs during the depression included a focus on women in the family. The Conseil Supérieur de la Natalité campaigned for provisions enacted in the Code de la Famille (1939) that increased state assistance to families with children and required employers to protect the jobs of fathers, even if they were immigrants. In rural and small-town areas, women expanded their operation of vegetable gardens to include as much food production as possible. In
2192-451: A significant amount of rubber. Gloves (medical, household, and industrial) and toy balloons were large consumers of rubber, although the type of rubber used is concentrated latex. Significant tonnage of rubber was used as adhesives in many manufacturing industries and products, although the two most noticeable were the paper and the carpet industries. Rubber was commonly used to make rubber bands and pencil erasers . Rubber produced as
2329-453: A single phospholipid membrane with hydrophobic tails pointed inward. The membrane allows biosynthetic proteins to be sequestered at the surface of the growing rubber particle, which allows new monomeric units to be added from outside the biomembrane, but within the lacticifer. The rubber particle is an enzymatically active entity that contains three layers of material, the rubber particle, a biomembrane and free monomeric units. The biomembrane
2466-480: A small cadre of Labour, but the vast majority of Labour leaders denounced MacDonald as a traitor for leading the new government. Britain went off the gold standard , and suffered relatively less than other major countries in the Great Depression. In the 1931 British election, the Labour Party was virtually destroyed, leaving MacDonald as prime minister for a largely Conservative coalition. In most countries of
2603-713: A standstill agreement froze Germany's foreign liabilities for six months. Germany received emergency funding from private banks in New York as well as the Bank of International Settlements and the Bank of England. The funding only slowed the process. Industrial failures began in Germany, a major bank closed in July and a two-day holiday for all German banks was declared. Business failures were more frequent in July, and spread to Romania and Hungary. The crisis continued to get worse in Germany, bringing political upheaval that finally led to
2740-401: A wire that encircles the tree. This wire incorporates a spring so it can stretch as the tree grows. The latex is led into the cup by a galvanised "spout" knocked into the bark. Rubber tapping normally takes place early in the morning, when the internal pressure of the tree is highest. A good tapper can tap a tree every 20 seconds on a standard half-spiral system, and a common daily "task" size
2877-442: Is 25 cm (vertical) bark consumption per year. The latex-containing tubes in the bark ascend in a spiral to the right. For this reason, tapping cuts usually ascend to the left to cut more tubes. The trees drip latex for about four hours, stopping as latex coagulates naturally on the tapping cut, thus blocking the latex tubes in the bark. Tappers usually rest and have a meal after finishing their tapping work and then start collecting
SECTION 20
#17327945385303014-627: Is South American Leaf Blight that affected rubber trees in Brazil that reduced productivity and caused British and Dutch rubber producers to start new plantations in Malaya and in the Dutch East Indies . A second reason was that after the 1917 October Revolution , Russia renewed its effort to make synthetic rubber as part of two projects: 1) Project Bogatyr in which rubber is made from ethyl alcohol , and 2) Project Treugolnik in which
3151-658: Is a consensus that the Federal Reserve System should have cut short the process of monetary deflation and banking collapse, by expanding the money supply and acting as lender of last resort . If they had done this, the economic downturn would have been far less severe and much shorter. Modern mainstream economists see the reasons in Insufficient spending, the money supply reduction, and debt on margin led to falling prices and further bankruptcies ( Irving Fisher 's debt deflation). The monetarist explanation
3288-418: Is a natural polymer of isoprene (polyisoprene), and an elastomer (a stretchy polymer). Polymers are simply chains of molecules that can be linked together. Rubber is one of the few naturally occurring polymers and prized for its high stretch ratio, resilience, and water-proof properties. Other examples of natural polymers include tortoise shell , amber , and animal horn . When harvested, latex rubber takes
3425-415: Is between 450 and 650 trees. Trees are usually tapped on alternate or third days, although many variations in timing, length and number of cuts are used. "Tappers would make a slash in the bark with a small hatchet. These slanting cuts allowed latex to flow from ducts located on the exterior or the inner layer of bark ( cambium ) of the tree. Since the cambium controls the growth of the tree, growth stops if it
3562-469: Is buoyant and water-proof. Industrial demand for rubber-like materials began to outstrip natural rubber supplies by the end of the 19th century, leading to the synthesis of synthetic rubber in 1909 by chemical means. The major commercial source of natural rubber latex is the Amazonian rubber tree ( Hevea brasiliensis ), a member of the spurge family , Euphorbiaceae . Once native to Brazil,
3699-496: Is cut. Thus, rubber tapping demanded accuracy, so that the incisions would not be too many given the size of the tree, or too deep, which could stunt its growth or kill it." It is usual to tap a panel at least twice, sometimes three times, during the tree's life. The economic life of the tree depends on how well the tapping is carried out, as the critical factor is bark consumption. A standard in Malaysia for alternate daily tapping
3836-438: Is held tightly to the rubber core by the high negative charge along the double bonds of the rubber polymer backbone. Free monomeric units and conjugated proteins make up the outer layer. The rubber precursor is isopentenyl pyrophosphate (an allylic compound), which elongates by Mg -dependent condensation by the action of rubber transferase. The monomer adds to the pyrophosphate end of the growing polymer. The process displaces
3973-572: Is low and strain results from small changes of bond lengths and angles: this caused the Challenger disaster , when the American Space Shuttle 's flattened o-rings failed to relax to fill a widening gap. The glass transition is fast and reversible: the force resumes on heating. The parallel chains of stretched rubber are susceptible to crystallization. This takes some time because turns of twisted chains have to move out of
4110-899: Is not cultivated widely in its native continent of South America because of the South American leaf blight , and other natural predators there. Rubber latex is extracted from rubber trees. The economic life of rubber trees in plantations is around 32 years, with up to 7 years being an immature phase and about 25 years of productive phase. The soil requirement is well-drained, weathered soil consisting of laterite , lateritic types, sedimentary types, nonlateritic red or alluvial soils. The climatic conditions for optimum growth of rubber trees are: Many high-yielding clones have been developed for commercial planting. These clones yield more than 2,000 kilograms per hectare (1,800 lb/acre) of dry rubber per year, under ideal conditions. Rubber production has been linked to deforestation. Rubber therefore
4247-588: Is one of seven commodities included in the 2023 EU Regulation on Deforestation-free products (EUDR), which aims to guarantee that the products European Union (EU) citizens consume do not contribute to deforestation or forest degradation worldwide. In places such as Kerala and Sri Lanka, where coconuts are in abundance, the half shell of coconut was used as the latex collection container. Glazed pottery or aluminium or plastic cups became more common in Kerala-India and other countries. The cups are supported by
Stevenson Plan - Misplaced Pages Continue
4384-449: Is produced by smallholders, who collect rubber from trees far from the nearest factory. Many Indonesian smallholders, who farm paddies in remote areas, tap dispersed trees on their way to work in the paddy fields and collect the latex (or the coagulated latex) on their way home. As it is often impossible to preserve the latex sufficiently to get it to a factory that processes latex in time for it to be used to make high quality products, and as
4521-529: Is produced from rubber, sulfuric acid is used for coagulation. This produces malodourous hydrogen sulfide. The industry can mitigate these bad odours with scrubber systems . Rubber is the polymer cis-1,4-polyisoprene – with a molecular weight of 100,000 to 1,000,000 daltons . Typically, a small percentage (up to 5% of dry mass) of other materials, such as proteins , fatty acids , resins , and inorganic materials (salts) are found in natural rubber. Polyisoprene can also be created synthetically, producing what
4658-422: Is refined into the rubber that is ready for commercial processing. In major areas, latex is allowed to coagulate in the collection cup. The coagulated lumps are collected and processed into dry forms for sale. Natural rubber is used extensively in many applications and products, either alone or in combination with other materials. In most of its useful forms, it has a large stretch ratio and high resilience and also
4795-567: Is sometimes applied to the tree-obtained version of natural rubber in order to distinguish it from the synthetic version. The first use of rubber was by the indigenous cultures of Mesoamerica . The earliest archeological evidence of the use of natural latex from the Hevea tree comes from the Olmec culture, in which rubber was first used for making balls for the Mesoamerican ballgame . Rubber
4932-402: Is sometimes referred to as "synthetic natural rubber", but the synthetic and natural routes are distinct. Some natural rubber sources, such as gutta-percha , are composed of trans-1,4-polyisoprene, a structural isomer that has similar properties. Natural rubber is an elastomer and a thermoplastic . Once the rubber is vulcanized, it is a thermoset . Most rubber in everyday use is vulcanized to
5069-479: Is still random but they become aligned when the rubber is stretched. This sulfur vulcanization makes the rubber stronger and more rigid, but still very elastic. And through the vulcanization process, the sulfur and latex are meant to be totally used up in individual form. Natural rubber latex is shipped from factories in Southeast Asia , South America , and West and Central Africa to destinations around
5206-493: Is supported by the contrast in how the crisis progressed in, e.g., Britain, Argentina and Brazil, all of which devalued their currencies early and returned to normal patterns of growth relatively rapidly and countries which stuck to the gold standard , such as France or Belgium. Frantic attempts by individual countries to shore up their economies through protectionist policies – such as the 1930 U.S. Smoot–Hawley Tariff Act and retaliatory tariffs in other countries – exacerbated
5343-539: The 1932 election , Hoover was defeated by Franklin D. Roosevelt , who from 1933 pursued a series of " New Deal " policies and programs to provide relief and create jobs, including the Civilian Conservation Corps , Federal Emergency Relief Administration , Tennessee Valley Authority , and Works Progress Administration . Historians disagree on the effects of the New Deal, with some claiming that
5480-505: The Mullins effect and the Payne effect and is often modeled as hyperelastic . Rubber strain crystallizes . Because there are weakened allylic C-H bonds in each repeat unit , natural rubber is susceptible to vulcanisation as well as being sensitive to ozone cracking . The two main solvents for rubber are turpentine and naphtha (petroleum). Because rubber does not dissolve easily,
5617-582: The New York Bank of United States – which produced panic and widespread runs on local banks, and the Federal Reserve sat idly by while banks collapsed. Friedman and Schwartz argued that, if the Fed had provided emergency lending to these key banks, or simply bought government bonds on the open market to provide liquidity and increase the quantity of money after the key banks fell, all the rest of
Stevenson Plan - Misplaced Pages Continue
5754-728: The Putumayo genocide . Between the 1880s–1913 Julio César Arana and his company that would become the Peruvian Amazon Company controlled the Putumayo river. W.E. Hardenburg, Benjamin Saldaña Rocca and Roger Casement were influential figures in exposing these atrocities. Roger Casement was also prominent in revealing the Congo atrocities to the world. Days before entering Iquitos by boat Casement wrote "'Caoutchouc
5891-539: The coming to power of Hitler's Nazi regime in January 1933. The world financial crisis now began to overwhelm Britain; investors around the world started withdrawing their gold from London at the rate of £2.5 million per day. Credits of £25 million each from the Bank of France and the Federal Reserve Bank of New York and an issue of £15 million fiduciary note slowed, but did not reverse,
6028-557: The cytosol . In plants, isoprene pyrophosphate can also be obtained from the 1-deox-D-xyulose-5-phosphate/2-C-methyl-D-erythritol-4-phosphate pathway within plasmids. The relative ratio of the farnesyl pyrophosphate initiator unit and isoprenyl pyrophosphate elongation monomer determines the rate of new particle synthesis versus elongation of existing particles. Though rubber is known to be produced by only one enzyme, extracts of latex host numerous small molecular weight proteins with unknown function. The proteins possibly serve as cofactors, as
6165-474: The stock market , which resulted in growing wealth inequality . Banks were subject to minimal regulation under laissez-faire economic policies, resulting in loose lending and widespread debt. By 1929, declining spending had led to reductions in manufacturing output and rising unemployment . Share values continued to rise until the Wall Street crash, after which the slide continued for three years, which
6302-447: The 1937 recession that interrupted it). The common view among most economists is that Roosevelt's New Deal policies either caused or accelerated the recovery, although his policies were never aggressive enough to bring the economy completely out of recession. Some economists have also called attention to the positive effects from expectations of reflation and rising nominal interest rates that Roosevelt's words and actions portended. It
6439-457: The Académie (published in 1755) that described many of rubber's properties. This has been referred to as the first scientific paper on rubber. In England, Joseph Priestley , in 1770, observed that a piece of the material was extremely good for rubbing off pencil marks on paper, hence the name "rubber". It slowly made its way around England. In 1764, François Fresnau discovered that turpentine
6576-813: The British crisis. The financial crisis now caused a major political crisis in Britain in August 1931. With deficits mounting, the bankers demanded a balanced budget; the divided cabinet of Prime Minister Ramsay MacDonald's Labour government agreed; it proposed to raise taxes, cut spending, and most controversially, to cut unemployment benefits 20%. The attack on welfare was unacceptable to the Labour movement. MacDonald wanted to resign, but King George V insisted he remain and form an all-party coalition " National Government ". The Conservative and Liberals parties signed on, along with
6713-673: The Congo Free State for more information on the rubber trade in the Congo Free State in the late 1800s and early 1900s.) The rubber boom in the Amazon also similarly affected indigenous populations to varying degrees. Correrias, or slave raids were frequent in Colombia, Peru and Bolivia where many were either captured or killed. The most well known case of atrocities generated from rubber extraction in South America came from
6850-530: The Depression. Businessmen ignored the mounting national debt and heavy new taxes, redoubling their efforts for greater output to take advantage of generous government contracts. During World War I many countries suspended their gold standard in varying ways. There was high inflation from WWI, and in the 1920s in the Weimar Republic , Austria , and throughout Europe. In the late 1920s there
6987-521: The Dow returning to 294 (pre-depression levels) in April 1930, before steadily declining for years, to a low of 41 in 1932. At the beginning, governments and businesses spent more in the first half of 1930 than in the corresponding period of the previous year. On the other hand, consumers, many of whom suffered severe losses in the stock market the previous year, cut expenditures by 10%. In addition, beginning in
SECTION 50
#17327945385307124-489: The Federal Reserve did not act to limit the decline of the money supply was the gold standard . At that time, the amount of credit the Federal Reserve could issue was limited by the Federal Reserve Act , which required 40% gold backing of Federal Reserve Notes issued. By the late 1920s, the Federal Reserve had almost hit the limit of allowable credit that could be backed by the gold in its possession. This credit
7261-442: The Great Depression is right, or the traditional Keynesian explanation that a fall in autonomous spending, particularly investment, is the primary explanation for the onset of the Great Depression. Today there is also significant academic support for the debt deflation theory and the expectations hypothesis that – building on the monetary explanation of Milton Friedman and Anna Schwartz – add non-monetary explanations. There
7398-642: The Great Depression. According to the U.S. Senate website, the Smoot–Hawley Tariff Act is among the most catastrophic acts in congressional history. Many economists have argued that the sharp decline in international trade after 1930 helped to worsen the depression, especially for countries significantly dependent on foreign trade. Most historians and economists blame the Act for worsening the depression by seriously reducing international trade and causing retaliatory tariffs in other countries. While foreign trade
7535-481: The New Deal prolonged the Great Depression, as they argue that National Industrial Recovery Act of 1933 and National Labor Relations Act of 1935 restricted competition and established price fixing. John Maynard Keynes did not think that the New Deal under Roosevelt single-handedly ended the Great Depression: "It is, it seems, politically impossible for a capitalistic democracy to organize expenditure on
7672-642: The Stevenson Act was repealed, but not after expanding Dutch rubber plantations had successfully captured most of the rubber market in the United States. Tired of regulation, rubber producers returned control of rubber prices to the free market. That worked well until the Great Depression in the 1930s lowered demand for rubber, and again rubber prices plunged. Rubber producers once again turned to regulation to maintain prices. This time it
7809-458: The Stevenson Act were beginning to threaten the "American way of life", so Hoover informed the British that if the Stevenson Plan stayed in effect, the United States would try to protect itself in any way it could. DuPont , under the direction of Elmer Keiser Bolton had been working on synthetic rubber since 1920. Thomas Edison, along with several tire companies, was trying to create American-based rubber production, but with little success. By 1928,
7946-544: The U.K. economy, which experienced an economic downturn throughout most of the late 1920s, was less severely impacted by the shock of the depression than the U.S. By contrast, the German economy saw a similar decline in industrial output as that observed in the U.S. Some economic historians attribute the differences in the rates of recovery and relative severity of the economic decline to whether particular countries had been able to effectively devaluate their currencies or not. This
8083-490: The U.S. unemployment rate down below 10%. World War II had a dramatic effect on many parts of the American economy. Government-financed capital spending accounted for only 5% of the annual U.S. investment in industrial capital in 1940; by 1943, the government accounted for 67% of U.S. capital investment. The massive war spending doubled economic growth rates, either masking the effects of the Depression or essentially ending
8220-428: The United States following World War I , and needed to have a profitable rubber industry. The Dutch refused to go along with the plan out of a philosophical reluctance to regulate their industry and because they would profit from a unilateral action by the British. In the United States tiremaker Harvey Firestone reacted angrily to the act as did Secretary of Commerce Herbert Hoover . By 1925 high prices resulting from
8357-622: The United States, agricultural organizations sponsored programs to teach housewives how to optimize their gardens and to raise poultry for meat and eggs. Rural women made feed sack dresses and other items for themselves and their families and homes from feed sacks. In American cities, African American women quiltmakers enlarged their activities, promoted collaboration, and trained neophytes. Quilts were created for practical use from various inexpensive materials and increased social interaction for women and promoted camaraderie and personal fulfillment. Oral history provides evidence for how housewives in
SECTION 60
#17327945385308494-543: The United States, remained on the gold standard into 1932 or 1933, while a few countries in the so-called "gold bloc", led by France and including Poland, Belgium and Switzerland, stayed on the standard until 1935–36. According to later analysis, the earliness with which a country left the gold standard reliably predicted its economic recovery. For example, The UK and Scandinavia, which left the gold standard in 1931, recovered much earlier than France and Belgium, which remained on gold much longer. Countries such as China, which had
8631-409: The amount of contaminants. Earth scrap is collected by field workers two or three times a year and may be cleaned in a scrap-washer to recover the rubber, or sold to a contractor who cleans it and recovers the rubber. It is of low quality. Latex coagulates in the cups if kept for long and must be collected before this happens. The collected latex, "field latex", is transferred into coagulation tanks for
8768-460: The banks would not have fallen after the large ones did, and the money supply would not have fallen as far and as fast as it did. With significantly less money to go around, businesses could not get new loans and could not even get their old loans renewed, forcing many to stop investing. This interpretation blames the Federal Reserve for inaction, especially the New York branch . One reason why
8905-465: The behavior of housewives. The common view among economic historians is that the Great Depression ended with the advent of World War II . Many economists believe that government spending on the war caused or at least accelerated recovery from the Great Depression, though some consider that it did not play a very large role in the recovery, though it did help in reducing unemployment. The rearmament policies leading up to World War II helped stimulate
9042-462: The collapse in global trade, contributing to the depression. By 1933, the economic decline pushed world trade to one third of its level compared to four years earlier. While the precise causes for the occurrence of the Great depression are disputed and can be traced to both global and national phenomena, its immediate origins are most conveniently examined in the context of the U.S. economy, from which
9179-475: The crash was a mere symptom of more general economic trends of the time, which had already been underway in the late 1920s. A contrasting set of views, which rose to prominence in the later part of the 20th century, ascribes a more prominent role to failures of monetary policy . According to those authors, while general economic trends can explain the emergence of the downturn, they fail to account for its severity and longevity; they argue that these were caused by
9316-625: The crisis, the U.S. Congress passed the Smoot–Hawley Tariff Act on 17 June 1930. The Act was ostensibly aimed at protecting the American economy from foreign competition by imposing high tariffs on foreign imports. The consensus view among economists and economic historians (including Keynesians , Monetarists and Austrian economists ) is that the passage of the Smoot–Hawley Tariff had, in fact, achieved an opposite effect to what
9453-633: The decade. The Depression had devastating economic effects on both wealthy and poor countries: all experienced drops in personal income , prices ( deflation ), tax revenues, and profits. International trade fell by more than 50%, and unemployment in some countries rose as high as 33%. Cities around the world , especially those dependent on heavy industry , were heavily affected. Construction virtually halted in many countries, and farming communities and rural areas suffered as crop prices fell by up to 60%. Faced with plummeting demand and few job alternatives, areas dependent on primary sector industries suffered
9590-408: The depression. Not all governments enforced the same measures of protectionism. Some countries raised tariffs drastically and enforced severe restrictions on foreign exchange transactions, while other countries reduced "trade and exchange restrictions only marginally": The gold standard was the primary transmission mechanism of the Great Depression. Even countries that did not face bank failures and
9727-435: The domestic price level to decline ( deflation ). There is also consensus that protectionist policies, and primarily the passage of the Smoot–Hawley Tariff Act , helped to exacerbate, or even cause the Great Depression. Some economic studies have indicated that the rigidities of the gold standard not only spread the downturn worldwide, but also suspended gold convertibility (devaluing the currency in gold terms) that did
9864-402: The drop in demand. Monetarists believe that the Great Depression started as an ordinary recession, but the shrinking of the money supply greatly exacerbated the economic situation, causing a recession to descend into the Great Depression. Economists and economic historians are almost evenly split as to whether the traditional monetary explanation that monetary forces were the primary cause of
10001-407: The dry rubber produced. Latex that drips onto the ground, "earth scrap", is also collected periodically for processing of low-grade product. Cup lump is the coagulated material found in the collection cup when the tapper next visits the tree to tap it again. It arises from latex clinging to the walls of the cup after the latex was last poured into the bucket, and from late-dripping latex exuded before
10138-666: The early 1900s, the Congo Free State in Africa was also a significant source of natural rubber latex, mostly gathered by forced labor . King Leopold II's colonial state brutally enforced production quotas due to the high price of natural rubber at the time. Tactics to enforce the rubber quotas included removing the hands of victims to prove they had been killed. Soldiers often came back from raids with baskets full of chopped-off hands. Villages that resisted were razed to encourage better compliance locally. (See Atrocities in
10275-427: The economies of Europe in 1937–1939. By 1937, unemployment in Britain had fallen to 1.5 million. The mobilization of manpower following the outbreak of war in 1939 ended unemployment. The American mobilization for World War II at the end of 1941 moved approximately ten million people out of the civilian labor force and into the war. This finally eliminated the last effects from the Great Depression and brought
10412-576: The end of the month. A large sell-off of stocks began in mid-October. Finally, on 24 October, Black Thursday , the American stock market crashed 11% at the opening bell. Actions to stabilize the market failed, and on 28 October, Black Monday, the market crashed another 12%. The panic peaked the next day on Black Tuesday, when the market saw another 11% drop. Thousands of investors were ruined, and billions of dollars had been lost; many stocks could not be sold at any price. The market recovered 12% on Wednesday but by then significant damage had been done. Though
10549-500: The explanations of the Keynesians and monetarists. The consensus among demand-driven theories is that a large-scale loss of confidence led to a sudden reduction in consumption and investment spending. Once panic and deflation set in, many people believed they could avoid further losses by keeping clear of the markets. Holding money became profitable as prices dropped lower and a given amount of money bought ever more goods, exacerbating
10686-421: The export of seeds or plants. In 1876, Henry Wickham smuggled 70,000 Amazonian rubber tree seeds from Brazil and delivered them to Kew Gardens , England. Only 2,400 of these germinated. Seedlings were then sent to India , British Ceylon ( Sri Lanka ), Dutch East Indies ( Indonesia ), Singapore , and British Malaya . Malaya (now Peninsular Malaysia ) was later to become the biggest producer of rubber. In
10823-636: The fabric. Rubber yarns were used in foundation garments. While rubber is still used in textile manufacturing, its low tenacity limits its use in lightweight garments because latex lacks resistance to oxidizing agents and is damaged by aging, sunlight, oil and perspiration. The textile industry turned to neoprene (polymer of chloroprene ), a type of synthetic rubber, as well as another more commonly used elastomer fiber, spandex (also known as elastane), because of their superiority to rubber in both strength and durability. Rubber exhibits unique physical and chemical properties. Rubber's stress–strain behavior exhibits
10960-503: The feedstock is petroleum. These projects succeeded in reducing Russian demand for British rubber. A third reason is that during World War I (1914-1918), demand for rubber was high resulting in new sources of rubber being developed. Following the War, demand for rubber diminished, creating a glut of rubber on the market and very low prices. The world became keenly aware of the importance of a stable supply of rubber for containing and initiating
11097-503: The few women in the labor force, layoffs were less common in the white-collar jobs and they were typically found in light manufacturing work. However, there was a widespread demand to limit families to one paid job, so that wives might lose employment if their husband was employed. Across Britain, there was a tendency for married women to join the labor force, competing for part-time jobs especially. In France, very slow population growth, especially in comparison to Germany continued to be
11234-477: The first technique for tapping trees for latex without causing serious harm to the tree. Because of his fervent promotion of this crop, he is popularly remembered by the nickname "Mad Ridley". Before World War II significant uses included door and window profiles, hoses, belts, gaskets, matting , flooring, and dampeners (antivibration mounts) for the automotive industry. The use of rubber in car tires (initially solid rather than pneumatic) in particular consumed
11371-505: The first week of June, 540 million in the second, and 150 million in two days, 19–20 June. Collapse was at hand. U.S. President Herbert Hoover called for a moratorium on payment of war reparations . This angered Paris, which depended on a steady flow of German payments, but it slowed the crisis down, and the moratorium was agreed to in July 1931. An International conference in London later in July produced no agreements but on 19 August
11508-544: The form of latex, an opaque, white, milky suspension of rubber particles in water. It is then transformed through industrial processes to the solid form widely seen in manufactured goods. Natural rubber is reactive and vulnerable to oxidization, but it can be stabilized through a heating process called vulcanization. Vulcanization is a process by which the rubber is heated and sulfur , peroxide , or bisphenol are added to improve resistance and elasticity and to prevent it from oxidizing. Carbon black , which can be derived from
11645-606: The government tried to reshape private household consumption under the Four-Year Plan of 1936 to achieve German economic self-sufficiency. The Nazi women's organizations, other propaganda agencies and the authorities all attempted to shape such consumption as economic self-sufficiency was needed to prepare for and to sustain the coming war. The organizations, propaganda agencies and authorities employed slogans that called up traditional values of thrift and healthy living. However, these efforts were only partly successful in changing
11782-459: The higher-grade, technically specified block rubbers such as SVR 3L or SVR CV or used to produce Ribbed Smoke Sheet grades. Naturally coagulated rubber (cup lump) is used in the manufacture of TSR10 and TSR20 grade rubbers. Processing for these grades is a size reduction and cleaning process to remove contamination and prepare the material for the final stage of drying. The dried material is then baled and palletized for storage and shipment. Rubber
11919-519: The home, or took boarders, did laundry for trade or cash, and did sewing for neighbors in exchange for something they could offer. Extended families used mutual aid—extra food, spare rooms, repair-work, cash loans—to help cousins and in-laws. In Japan, official government policy was deflationary and the opposite of Keynesian spending. Consequently, the government launched a campaign across the country to induce households to reduce their consumption, focusing attention on spending by housewives. In Germany,
12056-527: The initial crisis spread to the rest of the world. In the aftermath of World War I , the Roaring Twenties brought considerable wealth to the United States and Western Europe. Initially, the year 1929 dawned with good economic prospects: despite a minor crash on 25 March 1929, the market seemed to gradually improve through September. Stock prices began to slump in September, and were volatile at
12193-431: The international market spot price of a seemingly more profitable crop (for example palm oil ) surges in relation to rubber. For instance, during the 2020 and 2021 international COVID-19 pandemic , demand for rubber gloves surged, leading to a spike in rubber prices of about 30%. In addition to the pandemic, demand exceeded supply in part because long term plantations had been torn out and replaced with other crops over
12330-563: The lack of an adequate response to the crises of liquidity that followed the initial economic shock of 1929 and the subsequent bank failures accompanied by a general collapse of the financial markets. After the Wall Street Crash of 1929 , when the Dow Jones Industrial Average dropped from 381 to 198 over the course of two months, optimism persisted for some time. The stock market rose in early 1930, with
12467-402: The latex would anyway have coagulated by the time it reached the factory, the smallholder will coagulate it by any means available, in any container available. Some smallholders use small containers, buckets etc., but often the latex is coagulated in holes in the ground, which are usually lined with plastic sheeting. Acidic materials and fermented fruit juices are used to coagulate the latex –
12604-434: The latex-carrying vessels of the tree become blocked. It is of higher purity and of greater value than the other three types. 'Cup lumps' can also be used to describe a completely different type of coagulate that has collected in smallholder plantations over a period of 1–2 weeks. After tapping all of the trees, the tapper will return to each tree and stir in some type of acid, which allows the newly harvested latex to mix with
12741-416: The latex. There is growing concern for the future supply of rubber due to various factors, including plant disease, climate change, and the volatile market price of rubber. Producers of natural rubber are mostly small family-held plantations, often serving large industrial aggregators. High volatility in the price of rubber affects rubber plantation investment, and farmers may remove their rubber trees if
12878-472: The leading rubber producers. Types of polyisoprene that are used as natural rubbers are classified as elastomers . Currently, rubber is harvested mainly in the form of the latex from the Pará rubber tree ( Hevea brasiliensis ) or others. The latex is a sticky, milky and white colloid drawn off by making incisions in the bark and collecting the fluid in vessels in a process called "tapping". The latex then
13015-443: The liquid "field latex" at about midday. The four types of field coagula are "cuplump", "treelace", "smallholders' lump", and "earth scrap". Each has significantly different properties. Some trees continue to drip after the collection leading to a small amount of "cup lump" that is collected at the next tapping. The latex that coagulates on the cut is also collected as "tree lace". Tree lace and cup lump together account for 10%–20% of
13152-521: The market entered a period of recovery from 14 November until 17 April 1930, the general situation had been a prolonged slump. From 17 April 1930 until 8 July 1932, the market continued to lose 89% of its value. Despite the crash, the worst of the crisis did not reverberate around the world until after 1929. The crisis hit panic levels again in December 1930, with a bank run on the Bank of United States ,
13289-399: The material is finely divided by shredding prior to its immersion. An ammonia solution can be used to prevent the coagulation of raw latex. Rubber begins to melt at approximately 180 °C (356 °F). On a microscopic scale, relaxed rubber is a disorganized cluster of erratically changing wrinkled chains. In stretched rubber, the chains are almost linear. The restoring force is due to
13426-414: The mid-1930s, a severe drought ravaged the agricultural heartland of the U.S. Interest rates dropped to low levels by mid-1930, but expected deflation and the continuing reluctance of people to borrow meant that consumer spending and investment remained low. By May 1930, automobile sales declined to below the levels of 1928. Prices, in general, began to decline, although wages held steady in 1930. Then
13563-423: The monetary base and by not injecting liquidity into the banking system to prevent it from crumbling, the Federal Reserve passively watched the transformation of a normal recession into the Great Depression. Friedman and Schwartz argued that the downward turn in the economy, starting with the stock market crash, would merely have been an ordinary recession if the Federal Reserve had taken aggressive action. This view
13700-502: The most to make recovery possible. Every major currency left the gold standard during the Great Depression. The UK was the first to do so. Facing speculative attacks on the pound and depleting gold reserves , in September 1931 the Bank of England ceased exchanging pound notes for gold and the pound was floated on foreign exchange markets. Japan and the Scandinavian countries followed in 1931. Other countries, such as Italy and
13837-427: The most. The outbreak of World War II in 1939 ended the Depression, as it stimulated factory production, providing jobs for women as militaries absorbed large numbers of young, unemployed men. The precise causes for the Great Depression are disputed. One set of historians, for example, focuses on non-monetary economic causes. Among these, some regard the Wall Street crash itself as the main cause; others consider that
13974-582: The need to balance the national budget and was unwilling to implement expensive welfare spending . In 1930, Hoover signed the Smoot–Hawley Tariff Act , which taxed imports with the intention of encouraging buyers to purchase American products, which worsened the Depression because foreign governments retaliated with tariffs on American exports. In 1932, Hoover established the Reconstruction Finance Corporation , which offered loans to businesses and support to local governments. In
14111-483: The physical volume of exports fall, but also the prices fell by about 1 ⁄ 3 as written. Hardest hit were farm commodities such as wheat, cotton, tobacco, and lumber. Governments around the world took various steps into spending less money on foreign goods such as: "imposing tariffs, import quotas, and exchange controls". These restrictions triggered much tension among countries that had large amounts of bilateral trade, causing major export-import reductions during
14248-577: The plantation expanded to Karnataka , Tamil Nadu and the Andaman and Nicobar Islands of India. Today, India is the world's 3rd largest producer and 4th largest consumer of rubber. In Singapore and Malaya, commercial production was heavily promoted by Sir Henry Nicholas Ridley , who served as the first Scientific Director of the Singapore Botanic Gardens from 1888 to 1911. He distributed rubber seeds to many planters and developed
14385-480: The policies prolonged the Depression instead of shortening it. Between 1929 and 1932, worldwide gross domestic product (GDP) fell by an estimated 15%; in the U.S., the Depression resulted in a 30% contraction in GDP. Recovery varied greatly around the world. Some economies, such as the U.S., Germany and Japan started to recover by the mid-1930s; others, like France, did not return to pre-shock growth rates until later in
14522-459: The political situation in Europe. In their book, A Monetary History of the United States , Milton Friedman and Anna J. Schwartz also attributed the recovery to monetary factors, and contended that it was much slowed by poor management of money by the Federal Reserve System . Chairman of the Federal Reserve (2006–2014) Ben Bernanke agreed that monetary factors played important roles both in
14659-606: The preparation of dry rubber or transferred into air-tight containers with sieving for ammoniation. Ammoniation, invented by patent lawyer and vice-president of the United States Rubber Company Ernest Hopkinson around 1920, preserves the latex in a colloidal state for longer periods of time. Latex is generally processed into either latex concentrate for manufacture of dipped goods or coagulated under controlled, clean conditions using formic acid. The coagulated latex can then be processed into
14796-400: The preponderance of wrinkled conformations over more linear ones. For the quantitative treatment see ideal chain , for more examples see entropic force . Cooling below the glass transition temperature permits local conformational changes but a reordering is practically impossible because of the larger energy barrier for the concerted movement of longer chains. "Frozen" rubber's elasticity
14933-564: The previous 5–10 years, and other areas were affected by climate-fueled natural disasters. In this environment, producers did increase their prices in keeping with supply and demand dynamics, putting upward price pressure on the whole downstream supply chain. Great Depression The Great Depression was a severe global economic downturn from 1929 to 1939. The period was characterized by high rates of unemployment and poverty; drastic reductions in liquidity , industrial production, and trade; and widespread bank and business failures around
15070-422: The previously coagulated material. The rubber/acid mixture is what gives rubber plantations, markets, and factories a strong odor. Tree lace is the coagulum strip that the tapper peels off the previous cut before making a new cut. It usually has higher copper and manganese contents than cup lump. Both copper and manganese are pro-oxidants and can damage the physical properties of the dry rubber. Smallholders' lump
15207-604: The price of rubber. This was one of the provocations said to motivate the Japanese attack on Pearl Harbor , which caused the United States’ entry into World War II . Rubber Rubber , also called India rubber , latex , Amazonian rubber , caucho , or caoutchouc , as initially produced, consists of polymers of the organic compound isoprene , with minor impurities of other organic compounds. Thailand , Malaysia , Indonesia , and Cambodia are four of
15344-420: The rubber fig ( Ficus elastica ), Panama rubber tree ( Castilla elastica ), various spurges ( Euphorbia spp.), lettuce ( Lactuca species), the related Scorzonera tau-saghyz , various Taraxacum species, including common dandelion ( Taraxacum officinale ) and Kazakh dandelion, and, perhaps most importantly for its hypoallergenic properties, guayule ( Parthenium argentatum ). The term gum rubber
15481-580: The same quality as the natural rubber from rubber trees . In the wild types of dandelion, latex content is low and varies greatly. In Nazi Germany , research projects tried to use dandelions as a base for rubber production, but failed. In 2013, by inhibiting one key enzyme and using modern cultivation methods and optimization techniques, scientists in the Fraunhofer Institute for Molecular Biology and Applied Ecology (IME) in Germany developed
15618-434: The scale necessary to make the grand experiments which would prove my case—except in war conditions." According to Christina Romer , the money supply growth caused by huge international gold inflows was a crucial source of the recovery of the United States economy, and that the economy showed little sign of self-correction. The gold inflows were partly due to devaluation of the U.S. dollar and partly due to deterioration of
15755-454: The species is now pan-tropical. This species is preferred because it grows well under cultivation. A properly managed tree responds to wounding by producing more latex for several years. Congo rubber , formerly a major source of rubber, which motivated the atrocities in the Congo Free State , came from vines in the genus Landolphia ( L. kirkii , L. heudelotis , and L. owariensis ). Dandelion milk contains latex. The latex exhibits
15892-564: The synthetic rate decreases with complete removal. More than 28 million tons of rubber were produced in 2017, of which approximately 47% was natural. Since the bulk is synthetic, which is derived from petroleum, the price of natural rubber is determined, to a large extent, by the prevailing global price of crude oil. Asia was the main source of natural rubber, accounting for about 90% of output in 2021. The three largest producers, Thailand , Indonesia, and Malaysia, together account for around 72% of all natural rubber production. Natural rubber
16029-435: The terminal high-energy pyrophosphate. The reaction produces a cis polymer. The initiation step is catalyzed by prenyltransferase , which converts three monomers of isopentenyl pyrophosphate into farnesyl pyrophosphate . The farnesyl pyrophosphate can bind to rubber transferase to elongate a new rubber polymer. The required isopentenyl pyrophosphate is obtained from the mevalonate pathway, which derives from acetyl-CoA in
16166-698: The tonnage of rubber exported. The plan was enacted by the governments of Ceylon and British Malaya . The Federal Legislative Council of the Federated Malay States passed the Export of Rubber (Restriction) Enactment in October 1922, to take effect on November 1. In 1922, British interests controlled about 75% of rubber production and the United States consumed about 75% of the rubber produced. The British were still paying war debt to
16303-453: The way of the growing crystallites . Crystallization has occurred, for example, when, after days, an inflated toy balloon is found withered at a relatively large remaining volume. Where it is touched, it shrinks because the temperature of the hand is enough to melt the crystals. Vulcanization of rubber creates di- and polysulfide bonds between chains, which limits the degrees of freedom and results in chains that tighten more quickly for
16440-476: The world, recovery from the Great Depression began in 1933. In the U.S., recovery began in early 1933, but the U.S. did not return to 1929 GNP for over a decade and still had an unemployment rate of about 15% in 1940, albeit down from the high of 25% in 1933. There is no consensus among economists regarding the motive force for the U.S. economic expansion that continued through most of the Roosevelt years (and
16577-673: The world. The financial crisis escalated out of control in mid-1931, starting with the collapse of the Credit Anstalt in Vienna in May. This put heavy pressure on Germany, which was already in political turmoil. With the rise in violence of National Socialist ('Nazi') and Communist movements, as well as investor nervousness at harsh government financial policies, investors withdrew their short-term money from Germany as confidence spiraled downward. The Reichsbank lost 150 million marks in
16714-442: The world. As the cost of natural rubber has risen significantly and rubber products are dense, the shipping methods offering the lowest cost per unit weight are preferred. Depending on destination, warehouse availability, and transportation conditions, some methods are preferred by certain buyers. In international trade, latex rubber is mostly shipped in 20-foot ocean containers. Inside the container, smaller containers are used to store
16851-431: The world. The economic contagion began in 1929 in the United States , the largest economy in the world, with the devastating Wall Street stock market crash of October 1929 often considered the beginning of the Depression. The Depression was preceded by a period of industrial growth and social development known as the " Roaring Twenties ". Much of the profit generated by the boom was invested in speculation , such as on
16988-778: The worldwide economic decline and eventual recovery. Bernanke also saw a strong role for institutional factors, particularly the rebuilding and restructuring of the financial system, and pointed out that the Depression should be examined in an international perspective. Women's primary role was as housewives; without a steady flow of family income, their work became much harder in dealing with food and clothing and medical care. Birthrates fell everywhere, as children were postponed until families could financially support them. The average birthrate for 14 major countries fell 12% from 19.3 births per thousand population in 1930, to 17.0 in 1935. In Canada, half of Roman Catholic women defied Church teachings and used contraception to postpone births. Among
17125-468: Was a rubber solvent . Giovanni Fabbroni is credited with the discovery of naphtha as a rubber solvent in 1779. Charles Goodyear redeveloped vulcanization in 1839, although Mesoamericans had used stabilized rubber for balls and other objects as early as 1600 BC. South America remained the main source of latex rubber used during much of the 19th century. The rubber trade was heavily controlled by business interests but no laws expressly prohibited
17262-658: Was a scramble to deflate prices to get the gold standard's conversation rates back on track to pre-WWI levels, by causing deflation and high unemployment through monetary policy. In 1933 FDR signed Executive Order 6102 and in 1934 signed the Gold Reserve Act . The two classic competing economic theories of the Great Depression are the Keynesian (demand-driven) and the Monetarist explanation. There are also various heterodox theories that downplay or reject
17399-478: Was a small part of overall economic activity in the U.S. and was concentrated in a few businesses like farming, it was a much larger factor in many other countries. The average ad valorem (value based) rate of duties on dutiable imports for 1921–1925 was 25.9% but under the new tariff it jumped to 50% during 1931–1935. In dollar terms, American exports declined over the next four years from about $ 5.2 billion in 1929 to $ 1.7 billion in 1933; so, not only did
17536-500: Was accompanied by a loss of confidence in the financial system. By 1933, the U.S. unemployment rate had risen to 25 percent, about one-third of farmers had lost their land, and about half of the country's 25,000 banks had gone out of business. Many people, unable to pay mortgages or rent, became homeless and relied on begging or charities to feed themselves. The U.S. federal government initially did little to help. President Herbert Hoover , like many of his fellow Republicans , believed in
17673-808: Was controlled by British corporations, spurring efforts in Russia , Germany and the United States to reduce dependence on British rubber. All three countries were trying to develop methods of manufacturing synthetic rubber, and the United States Rubber Company began producing natural rubber in Sumatra in 1910. However, synthetic rubber was not yet practical, and natural rubber sources develop rather slowly (rubber trees must grow for six or seven years before they are productive). Between 1914 and 1922, natural rubber prices fluctuated between $ 0.115 and $ 1.02 per pound for several reasons. One reason
17810-555: Was done under the auspices of the International Rubber Regulation Agreement which was signed by all major rubber producing countries. This law succeeded in governing the price of rubber to the satisfaction of producers and most consumers. However, Japan was a consumer of rubber in the 1930s, using rubber to support its war effort in Manchuria and China , and its leaders were not happy with
17947-474: Was endorsed in 2002 by Federal Reserve Governor Ben Bernanke in a speech honoring Friedman and Schwartz with this statement: Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton and Anna: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again. The Federal Reserve allowed some large public bank failures – particularly that of
18084-760: Was first called 'india rubber,' because it came from the Indies, and the earliest European use of it was to rub out or erase. It is now called India rubber because it rubs out or erases the Indians." In India , commercial cultivation was introduced by British planters, although the experimental efforts to grow rubber on a commercial scale were initiated as early as 1873 at the Calcutta Botanical Garden . The first commercial Hevea plantations were established at Thattekadu in Kerala in 1902. In later years
18221-426: Was given by American economists Milton Friedman and Anna J. Schwartz . They argued that the Great Depression was caused by the banking crisis that caused one-third of all banks to vanish, a reduction of bank shareholder wealth and more importantly monetary contraction of 35%, which they called "The Great Contraction ". This caused a price drop of 33% ( deflation ). By not lowering interest rates, by not increasing
18358-500: Was in the form of Federal Reserve demand notes. A "promise of gold" is not as good as "gold in the hand", particularly when they only had enough gold to cover 40% of the Federal Reserve Notes outstanding. During the bank panics, a portion of those demand notes was redeemed for Federal Reserve gold. Since the Federal Reserve had hit its limit on allowable credit, any reduction in gold in its vaults had to be accompanied by
18495-446: Was intended. It exacerbated the Great Depression by preventing economic recovery after domestic production recovered, hampering the volume of trade; still there is disagreement as to the precise extent of the Act's influence. In the popular view, the Smoot–Hawley Tariff was one of the leading causes of the depression. In a 1995 survey of American economic historians, two-thirds agreed that the Smoot–Hawley Tariff Act at least worsened
18632-529: Was later used by the Maya and Aztec cultures: in addition to making balls, Aztecs used rubber for other purposes, such as making containers and to make textiles waterproof by impregnating them with the latex sap. Charles Marie de La Condamine is credited with introducing samples of rubber to the Académie Royale des Sciences of France in 1736. In 1751, he presented a paper by François Fresneau to
18769-470: Was the rollback of those same reflationary policies that led to the interruption of a recession beginning in late 1937. One contributing policy that reversed reflation was the Banking Act of 1935 , which effectively raised reserve requirements, causing a monetary contraction that helped to thwart the recovery. GDP returned to its upward trend in 1938. A revisionist view among some economists holds that
#529470