Chronology of Economic, Political and Financial Events in United States of America
Prepared for Geert Bekaert, Eric Engstrom and Campbell R. Harvey's

"The U.S. Risk Premium"
Date Major Political and Economic Events
Apr 1820 The federal government modifies the public land law to enable settlers to purchase land in eighty-acre parcels at $1.25 an acre.a
Dec 6, 1820 James Monroe is reelected as the President.b
Feb 1821 Kentucky becomes the first state to abolish incarceration for debt.a
May 4, 1822 President James Monroe vetoes a bill to repair and collect tolls on the National Road.a
Mar 3, 1823 Congress approves first act for harbor improvements.b
Dec 2, 1823 Monroe Doctrine declares opposition of United States to European interference in affairs of independent countries of North and South America.b
Mar 1824 The U.S. Supreme Court hands down the Gibbons vs. Ogden decision, which establishes the federal government's power over interstate commerce.a
May 22, 1824 Tariff Act raises protective tariffs.b
Jan 31, 1825 Chesapeake and Ohio Canal Company are chartered by Maryland.b
Feb 9, 1825 John Quincy Adams is elected as President.
Oct 26, 1825 The state of New York completes the Erie Canal, connecting Lake Erie to Hudson River; the commerce between East and West accelerates.a
Nov 1825 Bad harvests during the French Revolution and Napoleonic Wars cause stocks and bonds prices in Europe to drop precipitously, forcing many bankruptcies.a
1826 John Stevens maneuvers the first steam locomotive on tracks in Hoboken, New Jersey.a
Mar 8, 1827 Baltimore and Ohio Railroad Company are incorporated in Maryland.b
May 19, 1828 "Tariff of Abominations", a bill placing extremely high duties on imported raw materials is approved.b
Jul 4, 1828 Construction begins on the Baltimore and Ohio Railroad.a
Dec 3, 1828 Andrew Jackson is elected as President.
Dec 19, 1828 South Carolina protests Tariff Act of 1828 and sets forth doctrine of nullification.a
1829 New York Safety Fund Act requires chartered banks to contribute to fund to redeem notes of failed banks.b
Mar 12, 1830 In Craig vs. Missouri, Supreme Court rules unconstitutional state loan certificates intended for circulation.b
May 24, 1830 First division of Baltimore and Ohio Railroad is completed.a
May 27, 1830 Jackson vetoes the Maysville Road Bill, which would have provided federal monetary support for a sixty-mile road construction project entirely in Kentucky.a
May 31, 1830 Jackson approves aid for extension of Cumberland road as national project.b
Jan 15, 1831 First U.S.-built locomotive is placed in service.b
Mar 3, 1832 Supreme Court rules exclusive control of federal governent over tribal Indians and their lands.b
Jul 10, 1832 Jackson vetoes bill to recharter Bank of the United States.a
Nov 24, 1832 South Carolina passes Ordinance of Nullification, voiding tariff acts of 1828 and 1832.b
Dec 1832 Last redeemable federal debt retired and Treasury Secretary urges tariff reduction.b
Dec 5, 1832 Jackson is reelected as the President.
Mar 2, 1833 "Force Bill" approved empowering President to enforce compliance with tariff.b
Sep 26, 1833 Secretary of Treasury Taney removes U.S. deposits from Bank of the United States.b
Oct 1833 President Andrew Jackson withdraws federal funds from the Second Bank of the United States.a
Mar 28, 1834 Senate censures Jackson for removal of U.S. deposits from Bank of the United States.b
Jun 28, 1834 Second Coinage Act changes silver/gold ratio to 16 to 1, undervaluing silver and driving it from circulation.b
Dec 8, 1985 Federal government becomes debt-free for the first time.b
Feb 18, 1836 Bank of the United States is rechartered as Bank of the United States of Pennsylvania.b
Mar 2, 1836 Texas declares independence from Mexico. b)
Jun 23, 1836 Deposit Act requires Secretary of Treasury to name at least one bank in each state as the place of deposit and to distribute federal surplus to states.b
Jul 11, 1836 Specie Circular directs payments for public lands be in gold or silver.a
Dec 7, 1836 Martin Van Buren is elected as President.
Mar 1837 Wildcat banking and land speculation are matched by a fall in cotton prices, and the tightening of British credit brings the overheated economy to a screeching halt.a
May 10, 1837 Panic of 1837 begins as New York banks suspend specie payments, starting seven-year depression.b
Jan 7, 1839 Washington Mining Company is chartered; it is the first silver-mining company in the nation.a
Jul 4, 1840 Independent Treasury Act to hold federal funds in specie is approved.b
Aug 19, 1841 A new federal bankruptcy law is enacted.a
Sep 11, 1841 Tyler vetoes bill to reestablish national bank, and all members of Cabinet except Webster resign in protest.a
1842 Louisiana Banking Law first requires reserves against deposits as well as notes.b
Aug 30, 1842 Tariff Act raises duties to 1832 level.b
Sep 19, 1844 William Burt discovers iron on the upper peninsula of Michigan.a
Dec 4, 1844 James K. Polk is elected as President.
1845 Potato famine causes massive emigration from Ireland to U.S.b
May 13, 1846 Congress declares war on Mexico.b
Jun 26, 1846 Britain repeals Corn Laws, encouraging grain exports from U.S.a
Jul 30, 1846 Walker Tariff Act reduces duties.b
Aug 6, 1846 Congress reestablishes Independent Treasury.b
Apr 16, 1847 Samuel Morse forms the first telegraph company in the United States.a
Sep 14, 1847 General Winfield Scott captures Mexico City.b
1848 Chicago Board of Trade opens.b
1848 Failure of Revolutions of 1848 causes many Germans to emigrate to U.S.a
Jan 24, 1848 Golds are discovered at John Sutter's Mill, and the California Gold Rush begins.a
Feb 2, 1848 Treaty of peace with Mexico transfers New Mexico and California to U.S.b
Nov 7, 1848 Zachary Taylor is elected as President.
Dec 20, 1849 Commercial treaty is signed with Hawaiian Islands.b
Jul 4, 1850 Clayton-Bulwer Treaty with Britain to forego exclusive control over future Isthmian canal.b
Sep 20, 1850 First federal land grant subsidizes railroad from Chicago to Mobile.a
May 15, 1851 Trains begin running on the Erie Railroad between Lake Erie and New York City.a
Jun 2, 1851 "Maine Law" of Portland prohibits manufacture and sale of intoxicating liquors.b
Feb 20, 1852 First railroad train reaches Chicago from eastern ports.a
Nov 2, 1852 Franklin Pierce is elected as President.
1853 New York City banks form first clearing house.b
Mar 28, 1854 Crimean War - Britain and France attack Russia in defense of Turkey - begins.b
Mar 31, 1854 Commercial treaty is signed by Commodore Perry with Japan.b
Aug 3, 1854 The Graduation Act is passed to reduce the price of federal land.a
Jan 1, 1855 The first American oil company, the Pennsylvania Rock Oil Company, is formed.a
Sep 21, 1856 Illinois Central Railroad is completed from Chicago to Cairo.b
Nov 4, 1856 James Buchanan is elected as President.
Mar 3, 1857 Tariff Act reduces duties significantly.b
Apr 24, 1857 Panic of 1857 starts with failure of Ohio Life Insurance Company. b)
Aug 24, 1857 A drop in grain prices and the over-production of manufactured goods set off another panic. The panic begins with the failure of the New York branch of the Ohio Life Insurance & Trust Company, and the resulting depression lasts two years.a
Sep 16, 1857 Overland mail service to West Coast is arranged under federal subsidy.b
1858 Massachusetts requires reserves for banks against both deposits and notes following failures.b
July 1858 Gold is discovered near present-day Denver, Colorado, thus initiating the Pikes Peak Gold Rush and the white settlement of Colorado.a
1859 Comstock Lode is discovered in Nevada, first large silver strike.b
Aug 27, 1859 Oil is discovered in Pennsylvania.b
Apr 8, 1860 Pony Express begins ten-day service Missouri to Sacramento.b
Nov 6, 1860 Abraham Lincoln is elected as President.
Dec 20, 1860 South Carolina secedes from Union by unanimous vote of convention and seize all federal installations.b
Mar 2, 1861 Morrill Tariff Act increasing protection is approved.b
May 6, 1861 Confederate Congress votes war with U.S.b
Aug 5, 1861 Congress approves first federal income tax, 3 % levy on incomes over $800.a
Oct 7, 1861 Telegraph service opens to Sacramento.b
Dec 30, 1861 New York banks suspend specie payments, followed quickly by other cities.b
Feb 25, 1862 Legal Tender Act provides for issue of $150,000,000 in paper money called "greenbacks" -the first national paper money-, and for issuance of $500,000,000 in bonds at 6 percent.a
May 20, 1862 Homestead Act provides for free farms on public lands, proposal long opposed by South.b
Jun 19, 1862 Congress abolishes slavery in territories.b
Jul 1, 1862 Income tax revised: 3 percent on incomes $600 to $10,000 and 5 percent over $10,000.b
Jul 1, 1862 Pacific Railroad Act authorizes construction of route from Nebraska to California.b
Jul 11, 1862 Congress votes to issue $150,000,000 additional greenbacks.b
Feb 25, 1863 Congress passes the National Banking Act, establishing a network of national banks.a
Mar 3, 1863 Congress authorizes third and final issue of $150,000,000 in greenbacks and large borrowings at 6 percent.b
Apr 2, 1863 "Bread riot" occurs in Richmond.b
Jul 13, 1863 Draft rioters take over New York City until troops restore order.b
Jun 19, 1864 Tariff Act raises duties substantially.b
Jun 30, 1864 Internal Revenue Act broadens income tax and imposes other taxes on business.b
Jul 11, 1864 Gold price of greenbacks falls to 39 cents, lowest point in war.b
Nov 8, 1864 Lincoln is reelected as President.
Mar 3, 1865 Congress authorizes $600,000,000 bond issue at 5 percent.b
Mar 3, 1865 Congress imposes 10 percent tax on state bank notes, causing many state banks to convert to national charters.b
Apr 15, 1865 Lincoln dies following shooting by John Wilkes Booth.b
May 26, 1865 Last Confederate forces in West end armed resistance.b
Dec 18, 1865 Thirteenth Amendment abolishes slavery.b
Apr 12, 1866 Funding Act provides for conversion of short-term securites into long-term bonds.b
Jul 1, 1866 Congress enacts a 10 percent tax on state bank notes, in an effort to drive the state banks out of business.a
Jul 13, 1866 Congress reduces wartime taxes.b
Jul 30, 1866 Serious race riots occur in New Orleans.b
Sep 7, 1866 The second Atlantic cable is successfully completed to Britain by U.S. firm.b
Mar 2, 1867 Internal Revenue Act reduces taxes.b
Apr 9, 1867 Senate consents to purchase Alaska from Russia for $7,200,000.b
Feb 4, 1868 Congress suspends retirement of greenbacks, leaving $356,000,000 in circulation.b
Mar 31, 1868 Excise taxes are removed, except for liquor and tobacco.b
Jun 25, 1868 Congress passes Eight-Hour Act for government workers.b
Nov 3, 1868 Ulysses S. Grant is elected as President.
Sep 24, 1869 On "Black Friday," an effort by Jay Gould and Jim Fisk to corner the gold market collapses, ruining many investors.a
Jul 14, 1870 Internal Revenue Act eliminates most excise taxes and ends income tax in 1872.b
Apr 7, 1871 Illinois Railroad Act, first of "Granger Laws," creates commission to regulate rates and sevices of railroads and warehouses.b
Jun 6, 1872 Tariff Act reduces most tariffs by 10 percent.b
Nov 5, 1872 Grant is reelected as President.
Feb 12, 1873 Coinage Act ends coinage of silver dollar.b
Sep 8, 1873 Failure of Jay Cooke and Co., financier of Northern Pacific Railroad, sets off a five-year depression.a
Sep 20, 1873 New York Stock Exchange closes for ten days following "Black Friday."b
May 4, 1874 Secretary of Treasury Richardson resigns after tax scandal.b
Jun 20, 1874 Currency Act fixes amount of greenbacks in circulation at $382,000,000.b
1875 Gold is discovered in South Dakota.b
Jan 14, 1875 Specie Resumption Act provides for redemption of greenbacks in gold.b
Mar 3, 1875 Tariff Act restores 10 percent reduction of 1872.b
Mar 1, 1877 Supreme Court upholds state regulation of warehouse rates and other facilities as well as intrastate railroad rates in public interest.b
Mar 2, 1877 Rutherford B. Hayes is elected as President.
Jul 17, 1877 Widespread railroad strikes protest wage reducton.b
Aug 15, 1877 Long strike of anthracite workers in Pennsylvania ends with 10 percent wage increase.b
Jan 28, 1878 The nation's first commercial telephone exchange begins operations in New Haven.a
Oct 27, 1878 Manhattan Savings Institute of New York is robbed of $3,000,000 in record holdup.b
Dec 17, 1878 Greenbacks are quoted at par with gold, first time since 1862.b
Jan 25, 1879 Arrears of Pension Act provides retroactive payments to veterans.b
Nov 2, 1880 James A. Garfield is elected as President.
1881 Anaconda copper mine opens in Montana.b
Jan 19, 1881 Western Union Telegraph Company is formed through consolidations.b
Jan 24, 1881 Supreme Court rules 1862 federal income tax unconstitutional.b
Mar 3, 1881 Congress authorizes registration of trademarks.b
Sep 19, 1881 The President Garfield dies following shot by office-seeker.b
Jan 2, 1882 John D. Rockefeller organizes Standard Oil Trust.a
May 6, 1882 Congress passes the Chinese Exclusion Act, banning the immigration of Chinese for ten years.a
May 24, 1883 Brooklyn Bridge between New York and Brooklyn is completed.b
Sep 8, 1883 Northern Pacific Railroad line is completed.b
1884 Telephone service is established between New York and Boston, first "long distance".b
May 6, 1884 Failure of stock exchange firm of Grant and Ward bankrupts Ulysses S. Grant; forerunner of financial panic.b
1885 Chicago Stock Exchange opens.
Feb 26, 1885 Contract Labor Act prohibits importations of unskilled workers.b
1886 Great Plains cattle industry is devastated by drought and blizzard.
Apr 22, 1886 Spurred by widespread strikes, Cleveland urges Congress to create federal commission to mediate labor problems.b
May 4, 1886 Strikers gather in Haymarket Square, Chicago, to protest the killing of a striker the day before b the police. At the gathering, a bomb is thrown, and the police respond by firing into the crowd.a
Sep 4, 1886 Apache chief Geronimo is captured in Southwest ending significant Indian war.b
Oct 25, 1886 The Supreme Court rules that states cannot regulate railroad rates for interstate traffic.a
Dec 8, 1886 The American Federation of Labor is established in Columbus, Ohio. It comprises twenty-five labor groups representing 150,000 members.a
Feb 4, 1887 Interstate Commerce Commission is established by congress to regulate railroad rates.b
Mar 11, 1888 Great "blizzard of '88" cripples New York City and other areas.b
Nov 6, 1888 Benjamin Harrison is elected as President.
Jul 2, 1890 Sherman Antitrust Act voids contracts and combinations in restraint of interstate commerce.a
Oct 1, 1890 McKinley Tariff Act raises tariffs on manufactured goods to record levels.b
Nov 1890 Baring Brother, London Bankers, fails with repercussions in U.S. stock market.b
Mar 3, 1891 Ocean Mail Subsidy Act authorizes subsidies for merchant shipping.b
Mar 1892 Supreme Court orders Standard Oil Trust dissolved.b
Apr 19, 1892 The First U.S. automobile is built by Charles E. Duryea in Springfield, MA.b
Jul 1, 1892 Five-month Homestead strike at Carnegie Steel Company leads to serious violence.b
Jul 14, 1892 Martial law is declared in silver miners strike in Idaho.b
Nov 8, 1892 Grover Cleveland is elected as President.
Feb 20, 1893 Philadelphia and Reading Railroad is placed in receivership, heralding Panic of 1893.b
Apr 15, 1893 Issue of gold certificates is suspended by Treasury as gold reserve falls below $100,000,000 legal minimum. This sets off a national depression that lasts for four years.a
May 5, 1893 Stock prices decline sharply.
Jun 27, 1893 Stock market crash prelude to hundreds of business failures and bank closings.b
Jul 1893 Erie Railroad declared bankrupt.b
1894 Severe unemployment and many strikes.b
Jan 17, 1894 Treasury sells $50,000,000 in bonds to replenish its gold reserve.b
Mar 25, 1894 Coxey's Army of unemployed men marches on Washington from Ohio, demanding issue of paper money and public works program.a
Jul 3, 1894 U.S. troops enter Chicago to police Pullman strike, supported by general railway strike.a
Aug 27, 1894 Tariff Act imposes 2 percent income tax on incomes over $4,000.b
Nov 13, 1894 Treasury sells second issue of $50,000,000 in bonds to restore gold reserve.b
Feb 8, 1895 Treasury contracts with Morgan and Belmont to obtain $65,000,000 in gold.b
May 20, 1895 Supreme court voids income tax provision of 1894 Tariff Act.a
Aug 16, 1896 Gold is discovered in Klondike River region of Yukon in Canada near Alaska.b
Nov 3, 1896 Mckinley is elected as President.
1897 Boston completes first U.S. subway.b
Jul 24, 1897 Dingley Tariff raises duties to new highs but authorizes reciprocity agreements.b
Apr 24, 1898 Spain declares war on U.S. Congress also declares war with Spain on Apr 25.b
Jun 1, 1898 War Revenue Act imposes excises on luxuries and first federal inheritance tax, and authorizes sale of $200,000,000 in bonds at 3 percent.b
Jul 1, 1898 Uniform bankruptcy law is passed by Congress.b
Aug 12, 1898 Hostilities cease as peace terms signed with Spain.b
Mar 14, 1900 Gold Standard Act establishes gold dollar of 25.8 grains, nine-tenths fine, as standard unit of money in U.S. Also, authorizes 2 percent "consoles" to be sold to National Banks.b
Nov 6, 1900 McKinley is reelected as President.
Jan 10, 1901 The oil gusher Spindle top blasts near Beaumont, Texas, establishing the petroleum industry in Texas.c
Feb 25, 1901 U.S. Steel Corporation combining ten companies, including Carnegie; organized by J.P. Morgan, first billion dollar company.b
May 9, 1901 Wall Street panic is caused by struggle between railroad tycoons Hill and Harriman for control of Northern Pacific. The largest single-day decline in the stock market since 1803.c
Jul 25, 1901 McKinley proclaims free trade with Puerto Rico.b
Sep 6, 1901 McKinley is shot by anarchist at Buffalo, dies on Sep. 14 and Vice President Theodore Roosevelt becomes President.c
Nov 18, 1901 Second Hay-Pauncefote Treaty with Britain gives U.S. freedom to construct and fortify an Isthmian Canal.b
Jun 17, 1902 New lands Reclamation Act authorizes federal irrigation dams in West.c
Jun 28, 1902 Ishmian Canal Act authorizes President to acquire French Canal Companies' assets and to negotiate with Colombia to construct canal at Panama. Also authorizes Panama Canal bonds at 2 percent.b
Oct 3, 1902 Roosevelt intervenes in anthracite coal strike, which started May 12. (Strike ends Oct. 21).b
Feb 10, 1904 Russo-Japanese War begins.b
Mar 14, 1904 Supreme court rules Northern Securites Company violates antitrust laws and must be dissolved.b
Jun 15, 1904 Over 1,000 are killed as General Slocum burns off Manhattan.b
Nov 8, 1904 Roosevelt is reelected as President.
Apr 18, 1906 An earthquake hits San Francisco, destroying the business districts and much of the city and leaving 250,000 people homeless, 25,000 building destroyed, and 500 dead.c
Jan 26, 1907 Corporate contributions to political campaigns are prohibited by Congress.b
Mar 13, 1907 As the stock market drops, a financial panic begins, resulting in unemployment, high food prices, and bank failures by the end of the year.c
Oct 21, 1907 Run on Knickerbocker Trust Co. in New York starts "Bankers' Panic." In the coming weeks other banks and trusts fail, requiring the infusion of money from the U.S. Treasury.c
Nov 4, 1907 Roosevelt allows U.S. Steel to acquire troubled Tennessee Coal and Iron Co.b
Feb 3, 1907 Supreme Court rules that the Sherman Antitrust Act applies to labor unions and that boycotts are conspiracies in restraint of trade.b
May 30, 1908 Congress passes the Aldrich-Vreeland Act to correct deficiencies in the banking system that created the Panic of 1907.c
Nov 3, 1908 William Howard Taft is elected as President.
Aug 5, 1909 The Payne-Aldrich Tariff Act is signed by President Taft in keeping with his campaign promise to reduce tariffs.c
Jun 25, 1910 Postal Savings System to pay 2 percent interest is established.b
May 15, 1911 Supreme Court orders Standard Oil Company and American Tobacco Company dissolved for "unreasonable" restraint on trade.c
May 1912 Pujo Committee in House begins investigation of nation's financial system.b
Nov 5, 1912 Woodrow Wilson is elected as President.
Dec 2, 1912 Supreme Court orders merger of Union Pacific and Southern Pacific dissolved.b
Dec 15, 1912 About 80 percent of federal bonds outstanding is held by national banks to back note issues.b
1913 Ford introduces assembly line for mass production of autos in Detroit.b
Jan 1, 1913 Parcel post system is placed in operation.c
Feb 25, 1913 Sixteenth Amendment provides for federal income tax.c
Feb 28, 1913 Pujo Committee publishes report on "money trust."b
May 19, 1913 California prohibits land ownership by aliens.b
Oct 3, 1913 Underwood Tariff Act lowers duties of Payne-Aldrich Tariff by 10 percent. Act also imposes personal income tax with rates ranging from 1 to 6 percent.b
Dec 23, 1913 Federal Reserve Act is approved, providing for 12 regional banks in 12 districts, an elastic currency, centralized bank reserves, and "lender of last resort."c
Jul 28, 1914 World War I begins with Austria-Hungary's declaration of war against Serbia.c
Jul 31, 1914 New York Stock Exchange closes because of European Crisis. (Reopens Dec. 12).b
Aug 1914 Emergency currency is issued under Aldrich Vreeland Act.b
Aug 1, 1914 German declares war on Russia (France on Aug. 3, Britain on Aug. 4). Austria-Hungary declares war on Russia and Japan declares war on Germany in August.b
Nov 16, 1914 Federal Reserve Banks open for business.b
Jan 25, 1915 Telephone service begins between New York and San Francisco.c
Oct 15, 1915 U.S. bankers float $500 million loan to Britain and France at 5 percent.c
Sep 8, 1916 Emergency Revenue Act doubles income tax rates, adds estate tax and munitions profits tax, and establishes Tariff Commission.b
Nov 7, 1916 Wilson is reelected as President.
Feb 3, 1917 USS "Housatonic" is sunk by German submarine, and U.S. breaks diplomatic relations with Germany.b
Mar 3, 1917 Special Preparedness Fund Act provides for excess profit taxes and higher inheritance taxes.b
Apr 2, 1917 Wilson calls special session of Congress for declaration of war against Germany. (On April 4, Senate votes for war and house concurs on April 6.)b
Apr 24, 1917 Emergency Loan Act authorizes issue of $5 billion in bonds at 3.5 percent.b
Jun 21, 1917 Federal Reserve Act is amended to encourage membership, mobilize gold reserves, and facilitate issue of notes.b
Oct 1, 1917 Second Liberty Loan offers $3 billion in bonds at 4 percent.b
Oct 3, 1917 War Revenue Act doubles income taxes, provides for excess profits tax, and imposes many excises.c
Nov 6, 1917 Russian Bolshevist overthrow Kerensky's Provisional Government, placing Lenin in power.b
Dec 7, 1917 U.S. declares war on Austria-Hungary.b
Dec 26, 1917 The U.S. Railroad Administration takes charge of the nation's railroads.c
Apr 5, 1918 Third Liberty Loan offers $3 billion in bonds at 4.5 percent.b
Sep 28, 1918 Fourth Liberty Loan offers $6 billion in bonds at 4.25 percent.b
Oct 1918 Influenza epidemic hits soldiers and civilian in U.S. and Europe with many death.b
Nov 7, 1918 False armistice is celebrated in U.S. cities. Kaiser abdicates and flees to Holland on Nov. 9 and Armistice is signed by German representatives and firing stops on Nov. 11.b
Jan 29, 1919 Eighteenth Amendment prohibits manufacture and sale of intoxicating liquors.c
Apr 21, 1919 Victory loan of $4.5 billion in bonds at 4.75 percent to refund floating debt.b
Jul 27, 1919 Serious race riot starts in Chicago.b
Sep 12, 1919 Gov. Calvin Coolidge of Massachsetts orders state militia to patrol Boston, thereby breaking police strike.b
Dec 22, 1919 Attorney General Palmer begins series of "Red Raids" with many arrests as anti-Communist hysteria builds.b
1920 Postwar recession begins early in year. U.S. food prices are expected to fall 72 percent as farm prices plummet.c
Jan 17, 1920 National prohibition goes into effect. America goes dry.c
Feb 28 1920 Esch-Cummins Act authorizes ICC to promote railroad consolidations, and returns railroads to private hands.b
Feb 1920 Federal Reserve Banks raise discount rate to 7 percent.b
Nov 2, 1920 Warren Harding and Calvin Coolidge is elected as President.
1921 Bank suspensions, mainly small rural banks, jump to 466.b
Apr 20, 1921 Senate consents to treaty with Colombia, paying $25 million for loss of Panama.b
May 19, 1921 Emergency Tariff Act raises duties on farm products and embargoes German dye-stuffs.b
Aug 15, 1921 Packers and Stockyard Act provides for regulation of interstate commerce in livestock and poultry products.b
Nov 23, 1921 Revenue Act repeals corporate excess profits tax.b
Feb 6, 1922 Nine Power Treaty signed at Washington recognizes "Open Door" to China.b
Apr 1, 1922 Coal miners strike over wage cuts. (Ends with some concessions in September.)b
Jun 30, 1922 U.S. holds 47 percent of world's monetary gold stock, up from 23 percent before World War I.b
Sep 19, 1922 Fordney-McCumber Tariff Act raises duties to highest levels in history.b
Feb 1923 Senate starts investigation of corruption in Veterans' Bureau. Forbes resigns as director, later convicted and sent to prison.b
Mar 4, 1923 Secretary of the Interior Alber Fall resigns under cloud of Teapot Dome and Elk Hills oil leases investigation. Agricultural Credit Act provides for 12 Federal Intermediate Credit Banks.b
Apr 10, 1923 Oklahoma passes peroration law for oil production. (Other states follow.)b
Jan 16, 1924 McNary-Haugen Bill to support prices of farm products is first introduced in Congress.b
Jan 21, 1924 Lenin dies and is succeeded by Stalin and Trotsky.b
Jun 2, 1924 Revenue Act reduces estate and income taxes and abolishes most exercises.b
Oct 15, 1924 Treasury begins program of calling bond issues having note circulation privilege.b
Nov 4, 1924 Calvin Coolidge is elected as President.
Feb 1925 As cities and suburbs grow upward and outward, Americans spend more than $6 billion on building and construction.c
Apr 13, 1925 Henry Ford starts commercial airplane service between Detroit and Chicago.b
Nov 14, 1925 Because of a severe financial depression in Europe, the U.S. agrees to a sharp reduction in foreign war debts.e
Feb 26, 1926 Income and estate taxes are reduced, third tax cut since war.b
May 5, 1926 The United States and France sign an agreement on the war debt.c
Sep 18, 1926 Highly destructive Florida hurricane causes collapse of land boom.b
Apr 1927 Flood damage occurs in lower Mississippi Valley, worst in history (Large flood control projects activated in 1928.)b
Dec 27, 1927 Stalin becomes Soviet dictator.b
1928 Wall Street is shaken as stock prices swing wildly.c
Jan 7, 1928 "Coolidge optimism" spurs a Wall Street boom.c
May 3, 1928 Congress passes the Surplus Control Act to alleviate depressed conditions on the farm.e
May 27, 1928 Congress passes the Jones-White Act providing subsidies to U.S. shipping.c
Jul 2, 1928 Interest rates on short-term loans reach a record high of 10 percent.e
Nov 28, 1928 Herbert Hoover is elected as President.
Feb 2, 1929 Federal Reserve Board urges banks not to support stock speculation on margin purchases.b
Aug-Sep 1929 Steel and automobile production are declining and the whole economy shows signs of weakening. Yet stock market prices rise.d
Oct 1929 There have been heavy withdrawals of capital from America as England raised its interest rate to 6.5 percent.d
Oct 23, 1929 Stock prices drop in New York. (Decline accelerated on "Black Thursday," Oct. 24, and "Black Tuesday," Oct.29)c
Nov 13, 1929 $30 billion in value of listed stocks has been wiped out in the New York Stock Exchange.d
Dec 16, 1929 President Hoover signs an income tax reduction bill that would save taxpayers $160 million on their 1929 Federal taxes.e
Jan 2, 1930 With the economy sinking, agricultural and commodity prices falling, national income collapsing and unemployment approaching 4 million.d
Jun 1930 Stock market declines sharply.
Jun 17, 1930 Hawley-Smoot Tariff Act raises duties on hundreds of goods to record highs.e
Dec 11, 1930 Bank of the United States in New York closes, most significant bank failure of year.c
Dec 20, 1930 Congress authorizes expenditure of $116 million on projects to relieve unemployment. The number of unemployed is estimated at 7,000,000.e
Dec 23-26, 1930 The Chelsea Bank and Trust Company is forced to close. Three days later 20 small banks in six Southern and Midwestern states are closed.e
1931 The U.S. produces a record wheat crop, driving prices down and precipitating further financial crisis in the farm belt.c 2,294 bank failures during the year, at least 9 million unemployede
May 11, 1931 Kredit-Anstalt, Austria's largest bank, fails with worldwide repercussion.b
Jun 20, 1931 Hoover proposes and other nations accept one-year moratorium on all intergovernmental debts, including reparation, effective in July.c
Sep-Oct 1931 The bank panic increases as over 800 banks are closed in two months.e
Sep 21, 1931 Britain abandons gold standard.b
Sep 22, 1931 U.S. Steel announces that it will cut the wages of 220,000 workers by 10 percent.e
Dec 8, 1931 Hoover calls for increased taxation to make up for the deficit of $900 million.e
1932 Farm prices are 60 percent below 1929, and industrial production is 46 percent below 1929.
Feb 27, 1932 Glass-Steagall Act allows federal securities as well as eligible paper to be used to back Federal Reserve Notes, up to 60 percent.b
Feb 29, 1932 Britain raises protective tariff, including new "Corn Law."b
Jul 2, 1932 Franklin Roosevelt pledges "New Deal" in accepting Democratic nomination for President.b
Jul 7, 1932 The Dow Jones Industrial Average reaches an all-time low of 41.22.c
Jul 21, 1932 President Hoover signs the Emergency Relief Act to provide for $300 million in loans to states unable to raise money for relief purposes.e
Aug 26, 1932 Comptroller of the Currency orders moratorium on foreclosures of first-mortgage loans.b
Nov 8, 1932 Franklin Roosevelt is elected as President.
Dec 1932 Treasury Certificates are sold at record low of 0.75 percent.b
Dec 15, 1932 Six nations, including France and Belgium, default on war debt payments to the U.S.c
1933 Unemployment rates reach 25 percent of labor force.b
Feb 6, 1933 Governor Comstock of Michigan orders bank holiday. (About 20 other states follow.)b
Mar 5, 1933 Roosevelot declares national "bank holiday" and embargoes exports of gold. (Banks reopen on Mar. 13)c
Mar 9, 1933 Emergency Banking Act empowers the Treasury Department to control various transactions in currency, credit, and bullion.e
Apr 19, 1933 The Roosevelt administration abandons the gold standard for American currency in the international transactions.c
May 12, 1933 Thomas Amendment to Emergency Banking Act allows direct purchase of federal securities by Federal Reserve Banks and allows Federal Reserve Board to double reserve requirements of member banks.b
Aug 17, 1933 Employment has reached the level of Oct. 1931.e
Nov 8, 1933 The Civil Works Administration is set up to create jobs for 4 million workers.e
1934 The worst drought and subsidy increase farm prices markedly. The stock market turns upward, and industrial production increases slowly.e
Jan 30, 1934 Gold Reserve Act authorizes President to revalue dollar in terms of gold. (On Jan. 31 Roosevelt raises price of gold from $21 to $35 per oz.)b
Feb 15, 1934 Congress appropriates $950 million for civil works and direct relief.b
Apr 12, 1934 Senator Nye begins investigation of corporate profits in World War I.b
Jun 6, 1934 Securities and Exchange Commission is established, providing penalties for manipulation of stock prices and authority to set margin requirements on stock purchases.c
Jun 12, 1934 The Reciprocal Trade Agreement Amendment to the Smoot-Hawley Tariff is passed by Congress, reducing tariffs by up to 50 percent.c
Jul 16, 1934 Strike of International Longshoremen in San Francisco leads to nation's first "general strike."b
Jan 4, 1935 Roosevelt outlines his plans for expanding the New Deal into areas of social reform.e
Feb 16, 1935 Congress passes the Connally Hot Oil Act, regulating the production of crude oil and providing penalties for excess oil production.c
Apr 8, 1935 Congress appropriates $5 billion to provide "work relief".d
Aug 14, 1935 Roosevelt signs the Social Security Act, including pensions and unemployment insurance.d
Aug 30, 1935 Inheritance and gift taxes, and personal and corporate income taxes are increased.b
Jan 1, 1936 One percent payroll tax is imposed to provide unemployment insurance.b
Sep 25, 1936 The U.S. agrees to fix the exchange rates between the pound, the franc, and the dollar.e
Nov 3, 1936 Roosevelt is reelected as President.
Apr 20, 1937 Roosevelt asks Congress to appropriate $1.5 billion for relief, which represents a considerable drop from previous expenditures.e
May 30, 1937 In "Memorial Day Massacre", Chicago police kill ten people during demonstration by steel workers.b
Aug 1937 Discount rate at New York Federal Reserve Bank is reduced to 1 percent, where it remains until Jan. 1948.b
Sep 1937 Business activity starts to decline and stock prices drop.e
Apr 14, 1938 In response to the continuing recession begun in 1937, Roosevelt asks Congress for $3 billion to spend on relief.e
May 27, 1938 Congress reduces the corporation profits tax.c
Jun 1938 Federal bank supervisory agencies agree to allow banks to carry high grade bonds at amortized book value regardless of market prices.b
Oct 30, 1938 "Martian" invasion, radio drama presented by Orson Welles, causes widespread panic.b
Jan 4, 1939 Roosevelt asks Congress to approve a defense budget of $1.3 billion.e
Jun 29, 1939 Flat 18 percent tax rate set for corporations; undistributed profits tax repealed.b
Jun 30, 1939 The Emergency Relief Appropriating Act provides $1.5 billion for WPA.e
Sep 1, 1939 Germany invades Poland, starting World War II. (Britain and France declare war on Germany on Sept. 3)c
Sep 1, 1939 Federal Reserve Banks announce willingness to lend to all banks on federal securities at regular discount rates.b
Jan 3, 1940 Budget asks $1.8 billion for defense.b
Jun 10, 1940 Italy declares war on Britain and France.b
Jun 25, 1940 Revenue Act increases taxes substantially.b
Jul 10, 1940 Roosevelt asks Congress for additional $4.8 billion for defense.b
Oct 8, 1940 Second Revenue Act of 1940 raises corporate tax rate to 24 percent, and imposes excess profits tax.b
Nov 5, 1940 Roosevelt is reelected as President.
May 21, 1941 U.S. merchant vessel Robin Moor is sunk by German U-boat and Roosevelt declares Unlimited National Emergency on May 27.b
Jul 24, 1941 Japan invades Indo-China and Roosevelt freezes Japanese assets in U.S. and virtually stops trade.b
Sep 20, 1941 Tax increases sharpely.b
Oct 1, 1941 Ten percent luxury tax is imposed on many items.b
Dec 7, 1941 Japanese bombers attack Pearl Harbor, sinking or disabling several old battleships.b
Dec 8, 1941 U.S. declares war on Japan.b
Dec 11, 1941 Germany and Italy declare war on U.S.; U.S. then declares war on them.b
Dec 15, 1941 The Supplemental Defense Act appropriates $10 billion.d
Apr 30, 1942 Federal Reserve Banks are required to buy all Treasury bills offered at 3/8 percent.b
May 1942 Treasury offers first "tap" issue of 2.5 percent bonds to investor other than commercial banks.b
May 18, 1942 Retail price ceiling is imposed.b
Jun 30, 1942 Congress appropriates $42.8 billion for the armed services.d
Oct 21, 1942 Taxes are increased by $9 billion and five percent Victory tax is introduced on all incomes over $624.d
Dec 1, 1942 Nationwide gas rationing begins.c
Mar 29, 1943 Meat, fat, and cheese rationing begins.c
Apr 8, 1943 Executive order freezes wages and salaries.b
Apr 12, 1943 Second War Loan drive sells $18.6 billion of securities, as much as all five bond drives of World War I.b
May 12, 1943 German resistance ends in North Africa.b
Jun 9, 1943 Current Tax Payment Act provides for withholding of income taxes on wages and salaries and this withholding begins on July 1.b
Jul 25, 1943 Italian coup removes Mussolini from power.b
Sep 8, 1943 Italy surrenders unconditionally.b
Jul 1-30, 1944 United Nations Monetary and Financial Conference at Bretton Woods, 44 nations attending, blueprints International Bank for Reconstruction and Development, and International Monetary Fund.c
Nov 7, 1944 Roosevelt is reelected as President.
Apr 29, 1945 German forces in Italy surrenders to Allies. (Hitler commits suicide in Berlin on Apr. 30 and German surrender unconditionally to Allies on May 7.)b
Jun 12, 1945 Congress reduces gold reserve requirements for Federal Reserve Banks from 40 percent on notes and 35 percent on deposits to 25 percent on both. Also power to issue Federal Reserve Bank Notes (without gold backing) ended.b
Aug 14, 1945 Japan's surrender is proclaimed by Truman.b
Aug 18, 1945 President Truman orders the full restoration of civilian consumer production, collective bargaining, and the return of free markets.c
Nov 8, 1945 Revenue Act reduces wartime taxes by $6 billion, and ends excess profits tax.b
1946 By far worst year in history for strikes, with 116,000,000 man-days lost (Unions, unable to strike during the war years, do so now on a massive scale).e
Jan 12, 1946 Industrial recon version is all but 10 percent complete, and the unemployed reach 2 million out of a total labor force of 54 million.e
Jan 15, 1946 Electrical workers' strike begins. (Meat-packing strike on Jan. 16, and nationwide steel strike on Jan. 20.)d
Mar 1, 1946 Preferential discount rate of 0.5 percent loans is secured by governments ended.b
Apr - May, 1946 A strike by 400,000 members of the United Mine Workers shuts down coal production.e
Apr 29, 1946 Farm prices are at record highs.d
Jul 1946 Stock prices, rising since mid-1942, begin sharp decline.b
Jul 15, 1946 President Truman signs a bill extending wartime price controls for one more year.d
Jul 15, 1946 U.S. loans Britain $3.75 billion to help economic reconversion.b
Sep 5, 1946 The worst maritime strike in history stops all shipping in the United States.c
Nov 9, 1946 Wage and price controls are ended except for rent, sugar, and rice.b
Jan 1948 Discount rate is raised from 1 to 1 1/4 percent.b
Aug 16, 1948 The Federal Reserve System attempts to slow down installment buying by raising interest rates.c
Aug 18, 1948 Federal Reserve Board is empowered temporarily to increase bank reserve requirements.b
Aug 25, 1948 The consumer price index reaches a record high.c
Nov 2, 1948 Truman is elected as President.
Oct 26, 1949 Truman set a minimum wage of 40c to 75c an hour for certain industries engaged in interstate commerce.c
Dec 1, 1949 Midwest Stock Exchange formed by merger of Chicago and other regional exchanges opens.b
Jun 25, 1950 North Korean Communist forces invade South Korea. The outbreak of the Korean War sends stock prices tumbling and commodities prices soaring.c
Aug 4, 1950 Joint statement by the Federal Reserve Board and other supervisory agencies urges lenders to restrict speculative and inflationary loans.b
Sep 15, 1950 U.S. force land at Inchon, port of Seoul, outflanking Communist forces.b
Sep 23, 1950 Personal and corporate income taxes are increased.b
Oct 10, 1950 Federal Reserve Board issues Regulation X restricting credit on mortgage loans.b
Dec 16, 1950 Chinese Communist forces come to aid of North Korea, and Truman proclaims national emergency as Chinese drive U.S. forces southward.b
Jan 12, 1951 Truman demands higher taxes to put the U.S. military on a "pay-as-you-go basis."c
Jan 17, 1951 Margin requirements on stock purchases are raised from 50 to 75 percent.b
Mar 4, 1951 Treasury-Federal Reserve "accord" is announced under which the Federal Reserve will cease to support long-term government bonds at par.b
May 7, 1952 Federal Reserve Board ends installment credit controls.b
Jun 11, 1952 Regulation X, which restrict credit on mortgage loans and construction credit controls are eased.b
Jan 1953 Discount rate is raised 1.75 to 2.0 percent.b
Feb 20, 1953 Margin requirements on stock purchases are reduced from 75 to 50 percent.b
Mar 5, 1953 FOMC votes to confine open market operations to short-term securites ("Bills Only"), except to correct "disorderly markets."b
July 1953 Recession begins.b
Jul 27, 1953 Korean armistice goes into effect, ending hostilities after three years.b
Jan 1, 1954 Taxes are reduced by $5 billion, excess profits tax expires and personal tax rates are reduced.b
Mar 10, 1954 Excise and federal luxury taxes are reduced by 50 percent.d
Jun 1954 Member bank reserve requirements are reduced. (Discount rate cuts had been made in Feb. and Apr.)b
Aug 16, 1954 Internal Revenue Code of 1954 allows accelerated depreciation and makes extensive changes.b
Sep-Oct 1954 The recession ends as consumer credit rises for six straight months.c
1955 Full employment, rising personal income, increased consumer spending.e
Jan 4, 1955 The Federal Reserve Board raises the required down payment for purchasing stock to 60 percent to dampen speculation.c
Jan 13, 1955 The Chase National Bank and the Bank of the Manhattan Company are merged into the nation's second-largest bank.c
Feb 22, 1955 Eisenhower submits to Congress ten-year, $100 billion highway construction program blueprint of the interstate system.b
Aug 12, 1955 Minimum wage is increased from 75 cents to $1 per hour.c
Sep 26, 1955 As a result of the President's heart attack, the stock market suffers its worst one-day loss in history.e
Jun 29, 1956 Federal Aid Highway Act authorizes $33.5 billion over 13 years. (This was start of 41,000 mile interstate system.)b
Oct 29, 1956 Suez Crisis; Israeli, British, and French forces attack Egypt and seize Suez Canal.b
Jan 1, 1957 Ceiling rates on bank time and saving accounts are raised to 3 percent.b
Jun 3, 1957 Supreme Court rules du Pont's ownership of 23 percent of General Motors stock violates antitrust laws and orders divestiture.b
Sep 1957 Sharp recession begins.b
Jan 1958 Discount rate is reduce 3 percent to 2.75 percent. (Reserve requirement reductions and further discount rate cuts in following months.)b
Apr 1, 1958 In order to cope with the current recession, Eisenhower signs into law a bill appropriating $1.85 billion for emergency housing.e
May 1958 Business expansion begins.b
Jan 19, 1959 Eisenhower recommends continuation of a 52 percent tax rate on corporate profits.c
Jul 15, 1959 Nationwide strike cuts steel output by 90 percent (116-day strike is by far the longest on record in the industry.)b
Jul 22, 1959 The consumer price index reaches a new peak (124 percent of the 1947-1949).c
Jul 28, 1959 Federal Reserve Act amendments allow member banks to count vault cash as required reserves, and eliminate "central reserve city" classification.b
May 13, 1960 Bank Merger Act requires that mergers of insured banks be approved beforehand by federal supervisory agencies.b
Aug 7, 1960 Castro confiscates assets of U.S. companies in Cuba.b
Nov 8, 1960 Kennedy is elected as President.
Nov 16, 1960 Emergency measures are ordered to correct growing deficit in balance of payments.b
Dec 8, 1960 Large producers of electrical equipment admit guilt on antitrust charges. (Seven executives are sentenced to prison on Feb. 6)b
May 5, 1961 Minimum wage is raised to $1.25 per hour and coverage extended to 3.6 million workers.c
Aug 1961 Congressional hearings on Report of Commission on Money and Credit.b
Jan 23, 1962 The merger of American Airlines and Eastern Air Lines is approved, creating the world's biggest airline system.f
Feb 3, 1962 A ban on almost all trade with Cuba, effective Feb. 7, was ordered by Kennedy.f
Mar 2, 1962 President Kennedy announces that Soviet advances in nuclear weaponry will force him to order a resumption of U.S. atmospheric testing (US testing is resumed on April 25).e
Apr 10, 1962 Some of largest steel companies post price increases following labor settlement. Increases are cancelled Apr. 13 after Kennedy invokes antitrust measures.b
May 28, 1962 The NYSE experiences its greatest loss since 29 Oct. 1919.c
Jul 11, 1962 Treasury liberalizes depreciation guide-lines substantially.b
Sep 15, 1962 President Kennedy signs into law a $900 million public-works bill for projects in economically depressed areas.c
Oct 16, 1962 Revenue Act allows 7 percent investment tax credit for long-lived assets.b
Oct 22, 1962 In "Missile Crisis", Kennedy orders military measures against Russian rocket bases being constructed in Cuba. (Russia agrees to withdraw missiles on Oct. 28)b
Jan 24, 1963 Kennedy proposes large tax reduction to stimulate economy, but Congress does not pass measure.b
Jun 4, 1963 Act of Congress repeals Silver Purchase Act and authorizes issuance of Federal Reserve Notes in $1 and $2 denominations to replace silver certificates.b
Nov 22, 1963 President Kennedy is assassinated.b
Feb 26, 1964 Revenue Act cuts personal and corporate income taxes, accelerates corporate payments, and liberalizes investment tax credit.c
Aug 5, 1964 U.S. aircraft bomb North Vietnam.b
Sep 2, 1964 Interest Equalization Tax discourages foreign loans.b
Mar 3, 1965 Gold reserve requirement of 25 percent of Federal Reserve deposit liabilities are eliminated.b
Jun 21, 1965 Excise taxes are reduced by $4.6 billion.b
Dec 6, 1965 Ceiling on time deposits and CDs is raised to 5.5 percent. Discount rates at New York and Chicago FRBs are raised from 4 to 4.5 percent.c
Jan 24, 1966 1966-67 budget calls for a huge excess in defense spending, $12 billion more than in the preceding year, leaving a deficit for 1966-67 of $10 billion.e
Feb 9, 1966 The NYSE reaches the peak of a three-and-a-half-year bull market.c
Mar 26, 1966 Nationwide protest against the Vietnam war are staged in San Francisco, Chicago, Boston, Philadelphia and Washington.d
Apr 27, 1966 The Interstate Commerce Commission allows the merger of the Pennsylvania and New York Central Railroads, the largest merger in U.S. corporate history.d
Jul-Aug 1966 Racial riots erupt throughout the United States.e
Oct 7, 1966 Stock prices tumble; the Dow Jones industrial average falls to 744.c
Nov 15, 1966 Investment Tax Credit suspended by legislation.b
Jan 10, 1967 Johnson asks 6 percent (later 10 percent) surcharge on income taxes.b
Feb 1, 1967 Coverage of minimum wage extended 30 percent to 41 million workers. Minimum wage for previously covered workers raised from $1.25 to $1.40.b
Jun 13, 1967 Investment Tax Credit restored, effective Mar. 10, 1967, and ceiling raised from 25 to 50 percent of company's tax liability.b
Sep 30, 1967 Johnson approves $70 billion appropriation for defense, the largest single appropriation in history.b
Jan 18, 1968 Foreign official time deposits are exempted from Regulation Q interest ceilings.b
Feb 1968 Oil is discovered at Prudhoe Bay in Alaska's North Slope.b
Feb 1, 1968 Minimum wage is raised from $1.40 to $1.60.b
Feb 1, 1968 Regulation G extends margin requirement regulations to lenders other than bankers, brokers, and dealers.b
Apr 4, 1968 Martin Luther King, Jr. is assassinated in Memphis.b
Apr 19, 1968 Maximum rates payable on CDs over $100,000 are raised.b
Jun 28, 1968 Revenue Act adds 10 percent surcharge to personal and corporate income taxes to raise $10.5 billion.c
Jul 29, 1968 Margin requirements are extended to over-the-counter stocks.b
Nov 5, 1968 Richard Nixon is elected as President.
Jun 9, 1969 The prime lending rate reaches a record high at 8.5 percent.c
Jul 8, 1969 The first U.S. troop reductions in Vietnam begin.c
Jul 23, 1969 Consumer prices rise 6.4 percent since 1 Jan, the largest increase since 1951.c
Dec 17, 1969 The Dow Jones industrial average hits its low of the year at 769.93.c
Dec 23, 1969 Commercial paper issued by member banks or affiliates and borrowings from foreign banks are covered by reserve requirements.b
Dec 24, 1969 Federal Reserve Banks is authorized to extend emergency credit to nonmember depository institutions.b
Dec 30, 1969 Tax Reform Act reduces income taxes on poor and single persons, reduces surcharge to 5 percent, and repeals investment tax credit, effective Apr. 18, 1969.d
Jan 1970 Recession begins, ending the longest postwar expansion.b
Jan 19, 1970 Inflation reaches 6.1 percent, the highest rate since the Korean War.c
Jan 21, 1970 Maximum rates payable on time and savings accounts are raised to 4.5 percent.b
Feb 28, 1970 The January economic indicators fall by 1.8 percent, the greatest monthly decline since 1957 recession.c
Apr 1, 1970 Social Security benefits are raised by 15 percent.b
May 6, 1970 Margin requirements are reduced from 80 to 65 percent.b
Jun 21, 1970 Bankruptcy petition of Penn-Central is approved, followed by disruptions in credit markets.b
Nov 13, 1970 Discount rate is reduced from 6 to 5.75 percent, first of a series of reductions.b
Mar 17, 1971 Social Security benefits are raised by 10 percent.b
Aug 9, 1971 Lockheed Act provides for federal guarantees of private business loans in vitally important cases.b
Aug 15, 1971 Nixon announces "New Economic Policy", including 90-day freeze on wages, prices, and rents. He also restricts gold outflows.c
Dec 10, 1971 President Nixon signs a $25 billion tax cut.c
Dec 18, 1971 Smithsonian Agreement devalues dollar by 8.6 percent and official price of gold raised from $35 to $38 per ounce.b
May 6, 1972 Japanese and European steel producers promise to limit exports to the U.S. voluntarily for the next two years.c
Jul 8, 1972 Nixon announced three-year grain sale agreement with Russia.b The grain sale reaches $1 billion on Aug. 9.e
Aug 12, 1972 The last units of U.S. ground forces withdraw from Vietnam.d
Oct 20, 1972 Revenue Act authorizes sharing $30.2 billion of federal tax revenues with state and local governments over a five-year period.g
Oct 30, 1972 Nixon signs the Social Security bill providing an additional $5.3 billion in benefits for the elderly. On July 1, Nixon signed a bill increasing Social Security benefits by 20 percent.d
Nov 7, 1972 Nixon is reelected as President.
Jan 11, 1973 Phase III liberalizes wage and price controls.d
Jan 11, 1973 Dow industrial stock index closes at record 1051.c
Jan 15, 1973 Discount rate is raised to 5 percent, first of series of increases.b
Feb 12, 1973 Dollar is devalued by 10 percent, and official price of gold is raised from $38 to $42.22 per ounce.e
Mar 2, 1973 Foreign exchange markets close because of massive sales of dollars. (European markets reopen on Mar. 19 with EC currencies in "joint float.").b
Mar 6, 1973 Mandatory price controls are reimposed on most petroleum products.b
May 1973 Chicago Board of Trade Options Exchange is formed to deal in stock options.b
Jun 6, 1973 The minimum wage is raised from $1.6 to $2.2 per hour.c
Jun 13, 1973 Nixon orders 60-day freeze on retail prices, called "Phase 3 1/2."b
Jul 1, 1973 Maximum rate payable on bank passbook saving accounts is raised to 5 percent.b
Sep 7, 1973 Marginal reserves is increased on large CDs and bank-related commercial paper.b
Sep 10, 1973 Thirteen-week Treasury bills yield record 9.35 percent.b
Sep 21, 1973 Congress establishes new par value of dollar at $42 per ounce.b
Oct 16, 1973 Arab oil-producing states substantially raise posted price of crude oil and begin "oil embargo" on Oct. 17.b
Dec 1973 Decline in economy associated with Arab oil embargo begins.b
Mar 18, 1974 Oil embargo is lifted by OPEC.c
Apr 30, 1974 General price and wage controls end.c
Aug 9, 1974 Nixon resigns because of Watergate scandal and Ford becomes President.b
Aug 26, 1974 Treasury sells 13-week bills at record 9.9 percent yield.b
Oct 1974 Business activity begins sharp decline.b
Oct 8, 1974 Franklin National Bank declares insolvent; the largest bank failure in U.S. history.b
Oct 8, 1974 Ford's proposed anti-inflation program includes 5 percent income tax surchage.b
Dec 6, 1974 Discount rate is reduced from 8 to 7.5 percent, first series of reduction.b
Jan 15, 1975 Ford proposes substantial tax reduction to stimulate spending.b
Feb 28, 1975 New York City cancels large note issue amidst concern over its financial condition.b
Mar 29, 1975 President Ford signs a $22.8 billion tax bill.c
May 1, 1975 Trading under SEC-ordered negotiated broker fees begins on NYSE.b
Jul 1, 1975 Social Security payments boosted 8 percent in cost-of living adjustement.b
Oct 2, 1975 W.T.Grant files bankruptcy proceedings.b
Nov 10, 1975 Federal Reserve Board allows member banks to offer savings accounts to business corporations.b
Jan 1, 1976 Minimum wage rises from $2.10 to $2.30 as provided in 1974 law. (Rate went from $2.00 to $2.10 on Jan. 1, 1975)b
Mar 5, 1976 Pound drops to $1.98, under $2.00 for the first time.b
Sep 15, 1976 American Bank and Trust company fails, the fourth largest banking default ever.c
1977 The U.S. posts the highest trade deficit in its history, $31.1 billion.c
Nov 1, 1977 The minimum wage is raised to $3.35 per hour.c
Jan 13, 1978 Japan agrees to some opening of its domestic market to U.S. products.f
Nov 1, 1978 Carter announces a "massive intervention" in international currency markets, including a steep increase in the discount rate. The Dow Jones rises 35.34 points in a day.f
Jul 31, 1979 The Chrysler Corporation requests a $1 billion federal loan to prevent bankruptcy.c
Oct 3, 1979 A major grain sale to the U.S.S.R, up to 25 million metric tons of wheat and corn over the next year, is announced by the federal government.f
Oct 6, 1979 A financial and stock panic is sparked when the Federal Reserve Board announced a raise in its discount rate from 11 percent to 12 percent.f
Dec 31, 1979 In London, gold reaches $524 per ounce, an increase of 132 percent in one year.c
1980 The price of gold rises to a high of $802 on the New York market.c
May 30, 1980 The index of leading economic indicators dropped 4.8 percent in April, the largest monthly drop on record.f
Nov 4, 1980 Ronald Reagan is elected president.
Dec 19, 1980 The U.S. prime interest rate reaches an all-time high of 21.5 percent.c
1981 The economy continues to falter as inflation hits 14 percent and unemployment reaches 7.4 percent.f
Jan 7, 1981 A stock market run begins when Joe Granville, a popular market forecaster, advises to "sell everything." The Dow Jones falls 23.8 percent.f
Feb 18, 1981 President Reagan reveals a program for economic recovery, asking for cuts in eighty-three federal programs.c
Mar 1981 Reagan announces plans to cut taxes and the budget by $130.5 billion.c
Mar 28, 1981 After reaching a high of $40 per ounce in Jan., the price of silver stabilizes at $12 per ounce.c
May 1, 1981 Japan announces plans to limit exports of its passenger cars to the U.S. after American officials threaten to impose quotas limiting Japanese imports.c
May 26, 1981 OPEC freezes oil prices at $32 per barrel and announces plans to cut production by 10 percent.c
Jul 29, 1981 Congress passes Reagan's tax-cut legislation, expected to save taxpayers $750 billion over five years.i
1982 Congress approves a three-year, 25 percent reduction in personal and business income taxes.c
Aug 1982 A bull market begins on Wall Street. The inflation rate falls to 6.1 percent.c
Dec 1982 Unemployment hits 10.8 percent, the highest since 1940.i
Dec 23, 1982 The federal fuel tax on gasoline and diesel is increased by five cents.f
Jan 1983 The Public Power Supply System of Washington State defaults on more than $2 billion in municipal bonds, the worst government failure in U.S. history.c
Nov 6, 1984 Reagan is reelected president.
1985 A record 43,000 farms go bankrupt as land prices fall and interest rates soar. Many banks and savings-and-loan institutions go bankrupt in Texas, Oklahoma, and other oil states that are pressured by collapsing world oil prices.c
Sep 1986 Congress passes a major tax reform law.i
Dec 1986 U.S. international indebtedness reaches $269 billion.c
Jan 8, 1987 The stock market continues to rise, with the Dow Jones closing at 2002.25.i
Feb 18, 1987 Low interest rates and low oil prices combine with a weak dollar to boost corporate profits.c
Feb 20, 1987 The Commerce department announces that the economy grew at 1.3 percent after inflation, a lower rate of growth than had been predicted.c
Oct 19, 1987 The stock market crashes, with the Dow Jones plummeting a record 508 points. Computerized program trading as well as economic factors is blamed for the crash.f
Feb 4, 1988 The NYSE announces that it will curb the use of its electronic trading system when the Dow Jones rises or falls more than 50 points in a day.f
Nov 8, 1988 George Bush is elected president.
Jan 2, 1989 A comprehensive free trade agreement between the U.S. and Canada is signed.f
Aug 9, 1989 A measure to rescue the savings and loan industry is signed into law by President Bush.i
Oct 31, 1989 The minimum wage is increased from $3.35 per hour to $3.80.c
Nov 9, 1989 East Germany Opens Berlin Wall and Borders.h
Aug 2, 1990 Iraq invades Kuwait.i
Nov 5, 1990 President Bush signs a bill to reduce budget deficits $500 billion over five years, by spending curbs and tax hikes.i
Jan 17, 1991 The U.S. and its allies launch an attack on Iraq. The Gulf war ends on Feb. 27.i
Apr 17, 1991 The Dow Jones industrial average finishes above 3,000 for the first time.i
Oct 3, 1991 U.S. House Bank is ordered closed after revelations House members had written 8,331 bad checks.i
Dec 3, 1991 Bush signs a bill appropriating $25 billion to cover losses in the failure of savings and loan institutions.f
Feb 24, 1992 The closing of 21 auto plants in the U.S. over the next several years is announced by GM.f
Nov 3, 1992 Bill Clinton is elected President.
Aug 10, 1993 President Clinton signs a compromise bill designed to cut federal budget deficits $496 billion over five years, through spending cuts and new taxes.i
Jan 1, 1994 North American Fee Trade Agreement takes effect.i
Dec 8, 1994 President Clinton approves tariff-cutting provisions of the Uruguay Round of GATT.i
Jan 31, 1995 Clinton invokes emergency powers to extend a $20 billion loan to help Mexico avert financial collapse.i
Jul 27, 1995 Clinton signs a bill cutting $16.3 billion from spending.i
Dec 29, 1995 The Dow Jones closes at 5,117.12, up 33.5 percent for the year.i
Jul 31, 1997 Congress passes the biggest tax reduction in 16 years, including reductions in capital gain.k
Oct-Nov 1997 A decline in the value of Asian currencies since the summer shakes the world markets.i
Oct 20-23, 1997 Hong Kong's stock index falls 23.3 percent.i
Oct 27, 1997 The Dow Jones falls 554.26 points, the largest single day decline. Next day, it rebounds by 337.17 points.i
Dec 1997 The Dow Jones closes at 7908, up by 22 percent for the year as U.S. economy continues to grow and the unemployment rate declines to 4.6 percent.i
May 22, 1998 Congress approves $216 billion surface-transportation bill.i
Aug 1998 The crises in the Russian financial system leads world markets into turmoil, as its three-month moratorium on debt payments and over 50% devaluation of the ruble crush the Russian stock market.j
Aug 31, 1998 The Dow Jones falls 512 points on one day.i
Sep 26, 1998 Congress approves an $80 billion tax cut.i
Sep 29, 1998 U.S. short-term interest rates are cut with the federal funds rate dropping from 5.5 percent to 5.25 percent.i
Oct 15, 1998 The Federal Funds Rate is cut by 0.25 percent to 5 percent.i
Jan 1999 Brazil gives up the defense of its currency, having the real plunge 41 percent.j
Jan 21, 1999   The 1998 trade deficit hit an all-time high of $175 billion, 58 percent more than the shortfall recorded in 1997.
Mar 22, 1999   OPEC agreed to reduce crude oil production by 2.1 million barrels per day and maintain lower levels of output for a full year.
Mar 29, 1999   Dow Jones Industrial average topped the 10,000 mark.
Apr 09, 1999   The European Central Bank cut its key discount rate, for the first time, from 3.0 to 2.5 percent.
Apr 29, 1999   GDP rose to 4.5 percent in the first quarter
May 03, 1999   Dow Jones Industrial average topped the 11,000 mark.
May 26, 1999   First quarter GDP growth revised down to 4.1 percent..
May 27, 1999   US companies’ after tax profit rose 4.3% in the first quarter, the largest quarterly gain in four years.
Jun 10, 1999   Japan’s economy grew 7.9 percent in the first quarter.
Jun 11, 1999   California’s unemployment rate moved down from 5.7% in April to 5.2% in May, the lowest level since mid-1990.
Jun 29, 1999   Federal funds rate raised from 4.75 to 5.00 percent.
Jul 28, 1999   GDP rose 2.3 percent in the second quarter.
Aug 24, 1999   Federal funds rate raised from 5.00 to 5.25 percent.
   Discount rate raised from 4.50 to 4.75 percent.
   Mid-September: Hurricane Floyd batters the East Coast.
Sep 21, 1999   A 7.6 magnitude earthquake hits Taiwan.
Sep 30, 1999   In 1998, the US poverty rate fell to its lowest in 20 years at 12.7 percent. Real median household income hit a record 3.5 percent growth surpassing its pre-recessionary peak in 1989, and for the first time since 1975, all four US regions experienced significant increases.  September 30: Second quarter GDP growth rate revised to 1.6 percent, the smallest gain in four years.
Oct 04, 1999   MCI WorldCom to buy Sprint.
Oct 13, 1999   Producer Price Index for finished goods jumped 1.1 percent in September, the largest monthly increase in 9 years.
Oct 15, 1999   California’s unemployment rate dropped to 4.9 percent, the lowest since 1969.
Oct 27, 1999   GDP for third quarter grew at 4.8 percent, 2nd quarter growth rate was revised upward to 1.9 percent from the original 1.6 percent.
Nov 01, 1999   Dow Jones & Co. added the technology leaders Microsoft and Intel as well as two other issues, to its industrial average, the first time that NASDAQ stocks have been included. It also dropped four companies that have been components for most of the 20th century.
Nov 02, 1999   NASDAQ closed above the 3000 mark for the first time.

Nov 02, 1999 

 Packard Bell says it will end its computer manufacturing business, close its Sacramento plant, and lay off 80 percent of its US workforce.
Nov 16, 1999   Federal funds rate raised from 5.25 to 5.50 percent.
Nov 16, 1999   Discount rate raised from 4.75 to 5.00 percent.
Nov 17, 1999   Crude-oil futures hit an almost nine-year high, rising 90 cents to $26.60 a barrel.
Nov 24, 1999   Third quarter GDP grew at an annual rate of 5.5 percent, well above previous estimates.
Nov 30, 1999   Exxon and Mobil merger approved by federal regulators.
Dec 02, 1999   The euro fell to parity with the dollar for the first time since its launch in January as Europe’s common currency
Dec 17, 1999   Pharmacia and Monsanto agreed to merge.
Dec 22, 1999   Third quarter GDP rose at 5.7 percent annual pace, above the previous estimate of 5.5 percent.
Dec 29, 1999   NASDAQ closed above the 4000 mark for the first time.

Jan 14, 2000 

 Dow Jones industrials hit record high of 11,722.98.

Jan 27, 2000 

 Fourth quarter GDP grew at an annual rate of 5.8 percent.

February 2, 2000 

 Federal funds rate raised from 5.50 percent to 5.75 percent.


 Discount rate raised from 5.00 percent to 5.25 percent.

February 4, 2000 

 The nation’s jobless rate at 4 percent is lowest in 3 decades.

February 7 

 Pfizer Inc. and Warner-Lambert Co complete merger deal. 

Mar 10, 2000 

 NASDAQ hits record high of 5,048.62. 

Mar 16, 2000 

 Dow Jones industrials rose 499.19 points, biggest point gain on record.

Mar 20, 2000 

 Boeing Co. engineers and technical workers returned to work after a 40-day strike ending one of the biggest white-collar walkouts in US history.


 Crude oil prices drop below $30 a barrel.

Mar 21, 2000 

 Federal funds rate raised from 5.75 percent to 6.0 percent.


 Discount rate raised from 5.25 percent to 5.50 percent.

Mar 30, 2000 

 GDP growth rate for 4th quarter was revised upward to 7.3 percent, its strongest pace since 1984.

Apr 07, 2000 

 President Clinton signed into law a bill allowing older Americans to work without losing any of their Social Security benefits.

Apr 10, 2000 

 Wells Fargo & Co agreed to acquire First Security Corporation of Utah.

Apr 27, 2000 

 First quarter GDP grew at an annual rate of 5.4 percent with consumer spending jumping 8.3 percent, the sharpest gain in more than 17 years.


 Employment cost index jumped 1.4 percent in the first quarter, the sharpest increase in 11 years.

May 16, 2000 

 Federal funds rate raised from 6.0 percent to 6.5 percent.

Jun 29, 2000 

 GDP 1st quarter growth rate revised from 5.4 to 5.5 percent.

Jul 28, 2000 

 GDP 2nd quarter grew at an annual rate of 5.2 percent.

August, 2000 

 World oil prices are rising because of increasingly tight supplies. U.S. inventories are at their lowest level since 1976 and crude prices have increased significantly contributing to costlier gasoline and heating oil.

Sep 19, 2000 

 China was granted permanent normal trade relations status with the U.S.

Sep 28, 2000 

 GDP growth rate for 2nd quarter was revised to 5.6 percent.

Oct 18, 2000 

 Social Security and Supplemental Security income payments will increase by 3.5 percent in 2001, the biggest in almost a decade.

Oct 31, 2000 

 OPEC plans to increase oil production by 500,000 barrels per day making it the fourth increase this year.

Dec 21, 2000 

 GDP for 3rd quarter grew at an annual rate of 2.2 percent.

Dec 31, 2000 

 Dow and NASDAQ record losing years for the first time since 1990.

Jan 01, 2001 

 California’s minimum wage raised from $5.75 to $6.25

Jan 01, 2001 

 The California state rate portion of the total 7.25% sales tax rate was reduced by .25%, to a total tax rate of 7.00%.

Jan 03, 2001 

 Federal Reserve makes surprise rate cut.


 Federal funds rate reduced to 6.0 percent from 6.5 percent.


 Discount rate reduced to 5.5 percent from 6.0 percent.



 NASDAQ jumped a record 14.17 percent.

Jan 17, 2001 

 OPEC to cut oil production by 1.5 million barrels a day, or 5.6 percent of current output.

Jan 31, 2001 

 Federal funds rate reduced from 6.0 percent to 5.5 percent.


 Discount rate reduced from 5.5 percent to 5.0 percent.

Mar 19, 2001 

 OPEC to cut oil production by 1 million barrels a day.

March 19-20 

 California suffered rolling blackouts.

Mar 20, 2001 

 Federal funds rate reduced from 5.5 percent to 5.0 percent.


 Discount rate reduced from 5.0 percent to 4.5 percent.

Mar 27, 2001 

 California regulators approved retail electric rate increase.

Mar 29, 2001 

 GDP grew at an annual rate of 1 percent in the fourth quarter, the lowest in more than 5 years.

Apr 06, 2001 

 PG&E utility unit files for bankruptcy.

Apr 18, 2001 

 Federal funds rate reduced from 5.0 percent to 4.5 percent.


 Discount rate reduced from 4.5 percent to 4.0 percent.

Apr 23, 2001 

 A Tosco refinery explosion pushed gasoline prices to near record highs.

Apr 24, 2001 

 Standard & Poors lowered California’s bond rating from AA to A+

Apr 27, 2001 

 GDP grew at an annual rate of 2 percent in the first quarter.

May 7-8  

 California hit by rolling blackouts.

May 15, 2001 

 Federal funds rate reduced from 4.5 percent to 4.0 percent.


 Discount rate reduced from 4.0 percent to 3.5 percent.

Jun 07, 2001 

 Federal tax cut was signed into law.

Jun 18, 2001 

 The Federal Energy Regulatory Commission adopted a price "mitigation" plan designed to reduce spikes in wholesale electricity prices in California and other Western states

Jun 27, 2001 

 Federal funds rate reduced from 4.00 percent to 3.75 percent.


 Discount rate reduced from 3.50 percent to 3.25 percent.

Jun 29, 2001 

 First quarter GDP growth rate revised to 1.2 percent.

Aug 21, 2001 

 Federal funds rate reduced from  3.75 percent to 3.50 percent.


 Discount rate reduced from 3.25 percent to 3.00 percent.

August  29 

 Second quarter GDP grew  at a 0.2 percent annual rate.

Sep 11, 2001 

 Terrorists attack World Trade Center and the Pentagon.

September 11-14 

 U.S. stock trading halts.

Sep 17, 2001 

 Federal funds rate reduced from 3.50 percent to 3.00 percent.


 Discount rate reduced from 3.00 percent to 2.50 percent.



 Dow Jones industrials record biggest point drop in history, falling 684.41.

Oct 02, 2001 

 Federal funds rate reduced from 3.00 percent to 2.50 percent. 


 Discount rate reduced from 2.50 percent to 2.00 percent.  

Oct 26, 2001 

 Lockheed Martin Corporation awarded defense contract.

Nov 06, 2001 

 Federal funds rate reduced from 2.50 percent to 2.00 percent.


 Discount rate reduced from 2.00 percent to 1.50 percent

Nov 26, 2001 

 Recession in the US began in March 2001, according to NBER.

Dec 02, 2001 

 Enron filed for bankruptcy.

Dec 11, 2001 

 Federal funds rate reduced from 2.00 percent to 1.75 percent.


 Discount rate reduced from 1.50 percent to 1.25 percent.


 China becomes WTO member

Dec 21, 2001 

 GDP down 1.3 percent in Q3.

Dec 31, 2001 

 Markets fall for a second straight year for the first time since 1974.

Jan 01, 2002 

 Taiwan becomes WTO member.


 OPEC to cut oil production by 6.5 percent.


 Euro becomes legal tender in 12 European countries.

January 6, 2002  

 Unemployment insurance benefits increased in California.

February 28, 2002   

 GDP up 1.4 percent in Q4.

March 9, 2002   

 California’s "Job Creation and Worker Assistance Act of 2002" was signed into law that provides for temporary extended unemployment compensation.

March 28, 2002   

 GDP up 1.7 percent in Q4.

Apr 25, 2002 

 Security and Exchange Commission launched a formal investigation of Wall Street analysts' conflicts of interest.

May 13, 2002   

 President Bush signed a 10-year, $190 billion farm bill that promises to expand subsidies to growers.

June 27, 2002   

 GDP up 6.1 percent in Q1.

July 5, 2002   

 Foreign direct investment flows to developed countries declined by 56% in 2001, with the United States seeing the largest falloff to its lowest level since 1997.

July 8, 2002  

 Intel launches its Itanium 2 chip.

Jul 10, 2002 

 President Bush called for stiffer penalties to eradicate corporate fraud.

Jul 15, 2002 

 Pfizer to buy Pharmacia.

Jul 16, 2002 

 The dollar sank against the euro for the first time in more than two years.



 Intel to eliminate 4,000 jobs.

Jul 21, 2002 

 WorldCom filed for bankruptcy protection.

Jul 22, 2002 

 The Dow Jones industrial average sank to its lowest level in nearly four years. Both the NASDAQ and S&P 500 are at their lowest levels since the first half of 1997.

Jul 30, 2002 

 President Bush signed into law the Public Company Accounting Reform and Investor Protection Act.

Jul 31, 2002 

 GDP growth slowed to 1.1 percent in Q2 from revised 5.0 percent in Q1. Last year's data was also revised indicating that the economy shrank in each of the first three quarters.



 Venture capital investments hit four-year low.

August 8, 2002   

 IMF signed an emergency loan to Brazil.

Aug 11, 2002 

 U.S. Airways filed for bankruptcy.

August 20  

 The U.S. trade deficit narrowed in June, following two straight record monthly deficits.

Sep 27, 2002 

 Cargo operations at 29 West Coast ports ground to a halt when terminal operators locked out unionized workers

Oct 09, 2002 

Nov 06, 2002 

 Federal funds rate reduced from 1.75 percent to 1.25 percent.


  Discount rate reduced from 1.25 percent to 0.75 percent.

Dec 09, 2002 

 United Airlines filed for bankruptcy protection.

Dec 19, 2002 

 Standard & Poor’s lowered California’s bond rating to an A from an A+.

February 10, 2003 

  Moody’s lowered California’s bond rating to A2 from A1.

February 14-17 

 Major snowstorm hit Middle Atlantic and Eastern states.

February 26, 2003 

 Doctors in Hong Kong report the first case of a flu-type virus “Atypical Pneumonia,” now more commonly known as Severe Acute Respiratory Syndrome(SARS).

Mar 20, 2003 

  Operation Iraqi Freedom begins.

Apr 09, 2003 

  Baghdad falls and Iraqis and American troops topple stature of Saddam Hussein.

Apr 14, 2003 

 President Bush declares conclusion of major combat operations in Iraq.

Jun 25, 2003 

 Federal funds rate reduced from 1.25 percent to 1 percent, the lowest rate in 45 years.

Jun 26, 2003 

 GDP up 1.4 percent in Q1.

Jul 17, 2003 

 The US recession ended in November 2001, according to NBER.

Jul 24, 2003 

 S&P lowered California's bond rating from "A" to "BBB".

Jul 25, 2003 

 United States Treasury begins mailing $400 per child tax rebate checks.

Aug 02, 2003 

 Governor Gray Davis signs the 2003-04 state budget bill.

Aug 04, 2003 

 Moody's lowered California's bond rating from A2 to A3.

Aug 28, 2003 

 GDP grew at a revised 3.1 percent annual rate in the 2nd quarter.

Sep 03, 2003 

 Light vehicle sales in the U.S. reach 19.0 million in August, the second best monthly rate ever.

Oct 21, 2003 

 Wildfires breakout in Southern California, eventually burning 743,000 acres and destroying over 3,500 homes.

Oct 30, 2003 

 GDP grew by 7.2 percent, its fastest rate since 1984.

Dec 04, 2003 

 President Bush ends steel tariffs.

Dec 12, 2003 

 Dow Jones Industrial average closed above 10,000 for the first time since May 24, 2002.

Dec 13, 2003 

 Saddam Hussein captured by American troops.

Dec 23, 2003 

 Final report shows GDP grew by 8.2 percent in the third quarter, its fastest rate since 1984.

Dec 24, 2003 

 U.S. confirms first case of "mad cow" disease.

February 10, 2004 

 Unexpected cut in OPEC quota and cold weather contribute to higher oil prices.

February 11, 2004 

 Dow Jones Industrials closed at highest level in more than 2-1/2 years.

Mar 25, 2004 

 Fourth quarter GDP rose 4.1 percent.

Apr 30, 2004 

 International oil prices hit a 3-1/2 year high.

May 7, 2004 Alan Greenspan, Chairman of the Federal Reserve yesterday warned that current surging fiscal deficits present a threat to long-term growth within the economy. Greenspan stated that the fiscal deficit was a more pressing concern to him than the country's considerable current-account deficit, or the large consumer debt burden at play within the economy. High fiscal deficits threaten interest rates over the longer term. Greenspan added that high fiscal borrowing was not subject to correction by market forces in an economy as developed as the US. Greenspan is one of a series of prominent global economists, notably including those of the IMF, to have expressed concern at the degree of fiscal borrowing within the economy.
May 13, 2004 The US administration remains on the defensive as the violence in Iraq continues unabated and as the military faces a global outcry over Iraqi prisoner mistreatment. Yesterday saw the US react to a gruesome video of the decapitation of Nicholas Berg, a telecoms engineer kidnapped by Islamic militants in Iraq. The public reaction is, however, difficult to pin down. Many Americans' instinctive reaction will be to rally behind the war on terror and whatever tough measures are deemed necessary to 'get' the perpetrators. However, given the controversy currently surrounding those measures and the fact that Berg's family argue the US forces could have protected him better, many instead see the killing as a symptom of the administration's failed policies.
June 21, 2004 The current-account deficit in absolute terms has set a new record for the first quarter of 2004
June 24, 2004 US Senate Passes US$447bn Defense Bill
July 5, 2004 US Hiring Slows Sharply in June
July 1, 2004 The Federal Reserve yesterday increased the Fed Funds rate by 25 basis points, bringing the rate up to 1.25%. It is over four years since the Fed last tightened rates, with the current interest rate cycle seeing rates come down from 6.5% in late 2000, to just 1% in July 2003.
July 21, 2004 In a setback for Democrat presidential hopeful John Kerry, Sandy Berger has been forced to resign as an advisor. The former National Security Advisor to President Bill Clinton stood accused of improperly removing classified material on terrorism from government archives last year.
July 21, 2004 Fitch Confirms US Rating at AAA
All data from 1999 and on, unless otherwise noted, are from California Department of Finance' financial and statistical data, and World Market Research Centre at
a) American Eras, Matthew J. Bruccoli, Richard Layman, and Karen L. Rood, Gale Research, 1999
b) A Bicentennial Chronology of economic and financial events, Federal Reserve Bank of Chicago, July 1976
c) American Decades, Matther J. Bruccoli, Richard Layman, Gale Research, 1996
d) The Almanac of American history, Arthur M. Schlesiner, Jr., G.P. Putnam's sons, 1983
e) The Bicentennial Almanac, Calvin D. Linton, Thomas Nelson Inc., Publishers, 1976
f) The Encyclopedia of American facts and dates, Gorton Carruth, Thomas Y. Crowell Company, ninth edition, 1993
g) America in time, Malcolm C. Jensen, Houghton Mifflin Company, 1977
h) East Germany Opens Berlin Wall and Borders, Robert J. McCartney, Washington Post, November 10, 1989
i) The World Almanac and Book of facts, Primedia Reference Inc, 1998
j), IFC Monthly Emerging Market Data base 1998-1999
k) Information Almanac, Borgna Brunner, Information Please LLC, 1997

Last Updated on 7/23/04. Prepared by Jerome Mo at Duke University.
y 13, 2004 The US administration remains on the defensive as the violence in Iraq continues unabated and as the military faces a global outcry over Iraqi prisoner mistreatment. Yesterday saw the US react to a gruesome video of the decapitation of Nicholas Berg, a telecoms engineer kidnapped by Islamic militants in Iraq. The public reaction is, however, difficult to pin down. Many Americans' instinctive reaction will be to rally behind the war on terror and whatever tough measures are deemed necessary to 'get' the perpetrators. However, given the controversy currently surrounding those measures and the fact that Berg's family argue the US forces could have protected him better, many instead see the killing as a symptom of the administration's failed policies. June 21, 2004 The current-account deficit in absolute terms has set a new record for the first quarter of 2004 June 24, 2004 US Senate Passes US$447bn Defence Bill July 5, 2004 US Hiring Slows Sharply in June July 1, 2004 The Federal Reserve yesterday increased the Fed Funds rate by 25 basis points, bringing the rate up to 1.25%. It is over four years since the Fed last tightened rates, with the current interest rate cycle seeing rates come down from 6.5% in late 2000, to just 1% in July 2003. July 21, 2004 In a setback for Democrat presidential hopeful John Kerry, Sandy Berger has been forced to resign as an advisor. The former National Security Advisor to President Bill Clinton stood accused of improperly removing classified material on terrorism from government archives last year. July 21, 2004 Fitch Confirms US Rating at AAA    
All data from 1999 and on, unless otherwise noted, are from California Department of Finance' financial and statistical data, and World Market Research Centre at
a) American Eras, Matthew J. Bruccoli, Richard Layman, and Karen L. Rood, Gale Research, 1999
b) A Bicentennial Chronology of economic and financial events, Federal Reserve Bank of Chicago, July 1976
c) American Decades, Matther J. Bruccoli, Richard Layman, Gale Research, 1996
d) The Almanac of American history, Arthur M. Schlesiner, Jr., G.P. Putnam's sons, 1983
e) The Bicentennial Almanac, Calvin D. Linton, Thomas Nelson Inc., Publishers, 1976
f) The Encyclopedia of American facts and dates, Gorton Carruth, Thomas Y. Crowell Company, ninth edition, 1993
g) America in time, Malcolm C. Jensen, Houghton Mifflin Company, 1977
h) East Germany Opens Berlin Wall and Borders, Robert J. McCartney, Washington Post, November 10, 1989
i) The World Almanac and Book of facts, Primedia Reference Inc, 1998
j), IFC Monthly Emerging Market Data base 1998-1999
k) Information Almanac, Borgna Brunner, Information Please LLC, 1997

Last Updated on 7/23/04. Original version prepared by Jae Hyun Lee at Duke University in 1999. Revised and updated by Jerome Mo at Duke University, 2004.