The Importance of William Jennings Bryan to The American Populist Movement as Told Through The Allegorical Lens of The

Wonderful Wizard of Oz

by Benjamin T. Bills

History of American Economics Taught by Dr. Steven Horwitz Journal Article Precis of Hugh Rockoffs The Wizard of Oz as a Monetary Allegory

Hugh Rockoff, the author of The Wizard of Oz as a Monetary Allegory, is a Professor of Economics at the University of Rutgers. In 1967, he received his A.B. from Earlham College, and his Ph.D. from Chicago in 1972. He specializes in U.S. economic history, money and banking, and history of economic thought, which he has taught at Rutgers since 1971. In his highly esteemed article, Rockoff examines L. Frank Baums American classic, The Wonderful Wizard of Oz, as an allegorical reference to the main political, social and economic debates of the Populist Era. Rockoff explains that almost every reference in The Wonderful Wizard of Oz is emblematical of a major issue associated with the time period. From every significant character to even the smallest of details, such as the color of the yellow-brick road, have historic associations according to Rockoff. It would be hard for any well-informed student of history or economics to deny such important allegorical references. Moreover, Rockoff uses this article to highlight the significance of William Jennings Bryan & his Populist supporters in their connection with the free silver movement taking place near the end of the 19th century. Rockoff notes that Bryans monetary thought, compared to monetary theory of today, was surprisingly sophisticated. In fact, despite having been treated as monetary cranks, the monetary goals of Bryan were advanced for his time (Hugh Rockoff). Despite being a failed presidential candidate three times, Bryan made significant impacts on the way in which Americans viewed money throughout the entire Progressive Era. the significance of his actions can best be mapped out through the allegorical reference of The Wonderful Wizard of Oz. In order to understand the significant allegorical references that The Wonderful Wizard of Oz makes, it is important to analyze the setting in which the book was written. L. Frank Baum was born to a wealthy family in Chittenango, New York in 1856 (Hugh Rockoff). However, after marrying and moving to the frontiers of South Dakota, he became sympathetic

with the difficulties faced by farmers and small business owners. It is important to note that throughout the second half of the 19th century, large corporations were beginning to grow in size, resources, and power (Hugh Rockoff). In fact, by 1896, Pennsylvania Railroad Company employed more people than the U.S. Post Office (Michael Khazin et al.). The American Populist movement was born out of the growing emergence of big businesses. There was a general fear that corporations sought to subdue the layman - to keep the poor poorer while the rich got richer (Michael Khazin et al.). In the frontiers of South Dakota, it is easy to understand how Baums inspiration for The Wonderful Wizard of Oz - deflation began to steadily rise throughout the late 1800s, and although buying power increased, the money supply dropped significantly (Robert Higgs). The Conservative Democrat, Grover Cleveland, took office in March 1893. He held steadfast to his political ideology in support of the gold standard, and in subduing the role of unions in the marketplace (Robert Higgs). In 1896, the Supreme Court made a significant ruling that paralleled the aspirations of Cleveland - it ruled income taxes an unconstitutional measure by which to tax citizens, arguing that private property rights were not being protected (Robert Higgs). In the midst of this political leveraging (or lack thereof), the economy began to fall into crisis. Starting in 1893, investment spending fell precipitously by over 20% compared to the previous year. Real GNP per capita dropped by 7%, and unemployment rose drastically as the winter months rolled around (Robert Higgs). In the next two years, similar trends continued, and unemployment reached an unseen high of around 18% of the total labor force (Hugh Rockoff). In 1895, the economy witnessed a short-lived recovery, which was trumped by further misery, as real GNP per capita mirrored the instability of investment (Hugh Rockoff). This time period

would go down in history as the greatest depression in American history until the Great Depression itself. As is the case with all instances of political and economic turmoil, new ideologies arose. Throughout these turbulent years, the scope of government did not expand, sheerly because of the strong will of Grover Cleveland to limit government intervention. However, as Cleveland held steadfast to his conservative ideology, many democrats, especially the Populists, began to question the limited role of governmental intervention in the economy (Hugh Rockoff). Populists and Liberal-minded thinkers alike favored a move from the gold standard to an economy based on a bimetallic system. By including silver as the other precious metal, aside from gold, for which people could redeem their dollars, Populists hoped to increase the money supply, lower interest rates, and help the everyday working man thrive in a starving economy (Hugh Rockoff). Populist sentiments can best be identified through the famous Cross of Gold speech - a stirring rhetorical analogy given by the peoples political champion of the day, William Jennings Bryan, who argued that America was being hung on a cross of gold (the gold standard) to die as Jesus Christ had (Michael Khazin et al.). Amidst these trying and politically vicious years, Baum found the inspiration for his most successful and well-known allegorical commentary, The Wonderful Wizard of Oz. By understanding the historical context in which the monograph was written, we can begin to understand Rockoffs analysis of its allegorical references, and the significant history that it teaches about the Progressive Era in American History. First and foremost, there is the main character, Dorothy. Dorothy is representative of the hard-working, kind-hearted, honest-living, average Americans living on the frontier (Hugh Rockoff). It makes sense that Dorothy lives in Kansas on an impoverished farm with her Auntie

Em, because it is in the West where the Populist movement first came about. It is also after Baum moves west that he first realizes the difficult economic times faced by such individuals (Hugh Rockoff). Dorothys home is then uprooted by a large cyclone and dumped in the land of Oz. The land of Oz is representative of the East, where the gold standard reigns supreme, and gold holds a mystical-like value. Rockoff shows that the cyclone has numerous allegorical meanings: first, it is representative of the sweeping free silver movement coming out of the east, and second, it is representative of the swiftness by which Bryan gains political popularity (Hugh Rockoff). When Dorothys house lands, it falls on the Wicked Witch of the East. According to Rockoff, this witch is an allusion to Grover Cleveland, whose repeal of the Sherman Silver Purchase Act marked his intent to uphold the gold standard (Hugh Rockoff). After the witch dies (when Cleveland is replaced by William McKinley in the 1896 election), the Good Witch of the North is summoned to the scene, and gives the silver shoes to Dorothy. These shoes seem to have a magical power which the munchkins (average citizens in the east) do not seem to understand. The shoes are of course representative of the bimetallic standard its ability to deliver the nation from recession (Hugh Rockoff). Dorothy is then advised to follow the yellow brick road to the Emerald City. The yellow brick road is representative of the gold standard, while Emerald City is representative of Washington D.C. (Hugh Rockoff). Along the way, Dorothy meets the Scarecrow, the Tin Woodman, and the Cowardly Lion. The Scarecrow is representative of a western farmer. The Scarecrow believes himself to be unintelligent and incapable, but soon finds out that he is capable of understanding the complexity of monetary theory, and did not have to accept a monometallic gold standard simply because the experts said it was necessary (Hugh Rockoff).

The Tin Woodman is symbolic of the common workingman of the day. The Woodman was replaced by working tin parts that would slowly rust out, after being cursed by the Wicked Witch of the East. The Wicked Witch represented the large corporation owners, while the Tin Woodman represented the common workingman, who was alienated by the industrialization process - man turned machine (Hugh Rockoff). The Tin Woodman seeks a heart to return to human normalcy. Lastly, the group meets the Cowardly Lion, which is representative of William Jennings Bryan himself - a man with a big roar, capable of drawing the attention of large crowds, but who also went soft on his promise to create a bimetallic system in 1900, after his first defeat in 1896 (Hugh Rockoff). It is interesting to note that as the group makes its way to Emerald City, each member must overcome obstacles to prove they are not in fact how they perceive themselves to be. One of the most notable obstacles is when the Cowardly Lion falls asleep in the field of poppies. This is symbolic to the idea that concerned Populists feared Bryan might prioritize anti-imperialism as a more pertinent issue over the free silver movement. It is the mice, representing commoners concerned with everyday issues, that pull the Cowardly Lion from the field (Hugh Rockoff). This shows how crucial the grassroots support was for Bryans bimetallic ideals.. Finally, the group arrives at Emerald City, where all residents are wearing green glasses laden with gold locks, and people in the Court of Oz have nothing better to do than talk to each other (Hugh Rockoff). This section of the monograph is emblematical of bureaucrats in Washington, while the great Oz himself, is emblematical of Marcus Alonzo Hanna (a close economic adviser of William McKinley and the chairman of the Republican National Committee). The Wizard of Oz (Hanna), sends the group to visit the Wicked Witch of the West (William McKinley, who is still a pertinent threat to Populism and the free silver movement

before 1900). On the way, the Wicked Witch is able to trip up Dorothy and remove one of her slippers, noting that they lose their mystical power when not together. This act refers to McKinleys position on the bimetallic movement - he was willing to implement it as soon as he could sign an international treaty with the rest of the world (Hugh Rockoff). Many scholars believed that without an international treaty, the value of the American Dollar would decline on the international market. However, to the Populists, this was just an excuse to maintain the gold standard (Hugh Rockoff). After being held captive by the Wicked Witch of the West, Dorothy is able to free herself and her companions by melting the witch with water. Symbolically, this represents the western farmers desire for rain, as this is what they believed could relieve their debt (Hugh Rockoff). Dorothy and her friends return to the Land of Oz, all wielding various objects alluding to their desire for a bimetallic economy. Upon being received by the Wizard, the group realizes that he is full of hot air and cannot solve their problems. Hanna (portrayed by the Wizard of Oz), after reforming his political policies after the 1896 presidential election, could not follow through on the promises he made to his constituents (Hugh Rockoff). Finally, the group is able to find refuge with the Good Witch of the South, who grants each of their specific wishes. The Populists realized they could gain political power with the support of the south. Dorothy finds out that she can return to Kansas simply by clicking her heels together: according to Baum, a bimetallic economy would pull America out of a depression. However, when Dorothy returns home, she finds herself without silver shoes - the free silver movement slowly died out by the turn of the century. In 1900, the Gold Standard Act was passed, ensuring the United States remained on the gold standard until Nixon repealed Bretton Woods in 1973 (Robert Higgs).

L. Frank Baum never made a single reference that The Wonderful Wizard of Oz was designed as an allegorical reference to the major debates of the American Populist Era, yet from a historical perspective, it can absolutely be used as such. From the story, we can draw many lessons of both political and economic persuasions. In his article, Rockoff explains the significance of Bryan to the Populist and the free silver movements. His ideological leanings show that he was one of the first politicians cognizant of the Quantity Theory of Money, and the significance of money supply on a Macroeconomic level. History has downplayed the importance of Bryans theories, and ignored the pure & widespread grassroots support he received from commoners throughout the nation. However, we cannot be so quick to discredit his motivations without fully understanding his intentions. To Bryan and his supporters, upholding the gold standard would have had the following economic impacts: interest rates would remain high, the supply of money would remain low, savings and unemployment rates would increase, and the velocity of money would continue to slow. Bryan felt that if this were to continue, the average hard-working family would not have proper access to money. Without money there would be no chance of any entrepreneurial behavior or investment. By subduing investment, Bryan feared the American economy would continue to stagnate throughout the 1890s. Bryan was born in Nebraska in 1860. He grew up in an urban environment and decided to become a practicing lawyer when he became old enough (Michael Khazin et al.). By 1884, he jockeyed for a seat in the Senate, focusing primarily on the issue of income taxes in America. He believed that income taxes were the only way to effectively tax elites. By 1890, Bryan began to gain political clout, working as Secretary of State. By 1893, he had gained a successful following, eagerly advising for the national incorporation of silver into the economy (Robert

Higgs). He understood the relationship between velocity and the rate of price change, and he knew that a bimetallic standard would increase the amount of money in circulation. In 1896, Bryan campaigned against William McKinley for the presidential election. As he travelled the country, he gave his most famous Cross of Gold speech, lasting all of 45 minutes (Michael Khazin et al.). He emphasized the importance of price-level stability, and that interest rates must come down in order to relieve farmers and small business owners of their huge debts. In todays terms, Bryan would be classified as a Liberal. He held strong beliefs about what the government should and should not do in the wake of economic disparity. His intentions were the polar opposite of Grover Clevelands, who wished to minimize the scope of government in the wake of difficult economic times, and also varied from the 1896 President Elect, William McKinley, who desired an international treaty before instituting bimetallism (Hugh Rockoff). Critics of Bryan believed that by fixing the ratio of silver to gold, citizens would choose to buy and sell the more valuable of the two, respectfully. Milton Friedman examined the case for free silver and decided it accurate, but also noted that setting the silver to gold standard at 16 to 1 in 1896 could have been catastrophic to the economy (Hugh Rockoff). Any variance in the world reserves of gold or silver could have severely impacted the United States economy, without an international treaty. However, without his election in 1896, the true results of the bimetallic monetary system could not be known. Bryans ideas were not original or new, but he stands out as the most prominent political figure of the Populist movement. Rockoff shows that by analyzing the writing of Baum, we can better understand the clash of ideas taking place around the turn of the century. The Wizard of Oz can absolutely be used as an allegorical reference to the Populist movement, and it also helps to understand the significant impact Bryan had on politics at the time. He was a man of the

people in the midst of the greatest economic hardships prior to the Great Depression. He stood for the small business man while the Carnegies and Rockefellers of the world were emerging strong and powerful. Bryans fight for bimetallism significantly altered the way in which Americans viewed monetary theory throughout the Progressive Era.

Works Cited Higgs, Robert. Crisis and leviathan: critical episodes in the growth of American government. New York: Oxford University Press, 1987. Print. Khazin, Michael & William Thomas III. The Contenders Series: William Jennings Bryan. CSPAN. http://www.c-spanvideo.org/program/301270-1

Rockoff, Hugh. The Wizard of Oz as a Monetary Allegory. Journal of Political Economy. Vol. 98, 1990, pp. 739-760. Print