On this date in 1914 the Devils Lake World ran a political cartoon on page one. It showed Uncle Sam prepared to undertake a big project. He carried picks and shovels. Under one arm was a document labeled “Alaska Railroad Law.” Carrying railroad ties and rails as well as a locomotive, Uncle Sam was clearly ready to go to work. Facing him was a figure representing the unemployed saying, “Say, Uncle, do you need some help on that railroad?” Decades before FDR’s New Deal, the political cartoon suggested putting the unemployed to work on an important infrastructure project.
When people think of a financial crisis, the Great Depression usually comes to mind. But the financial crisis of 1914 was global. More than fifty countries experienced bank runs and financial crashes. As the year went on, almost every stock exchange in the world closed for six weeks. The recession began in 1913 and didn’t come to an end until World War I broke out.
A recession is defined as two straight quarters of contraction of the Gross Domestic Product. While not on the scale of the Great Depression, the financial crisis of 1914 was alarming, and it hit North Dakota particularly hard.
Ninety percent of the land in the state was devoted to farming and ranching. With agricultural prices falling, farmers and ranchers suffered. That filtered into the wider community, as local stores raised prices to make up for the lost business from farmers and ranchers. Everyone in the community began to shop more frugally. In turn, unemployment began to go up. The political cartoon was a suggestion that the unemployed be put to work on public works projects like the Alaskan railway.
The economy was in danger of sliding into a full-blown depression when World War I broke out. As fighting raged across Europe, orders for American goods poured in. North Dakota farmers suddenly had new markets, and they could breathe a sigh of relief.
Dakota Datebook written by Carole Butcher
Sources:
Oxford Press. “The Unknown Financial Crisis. https://blog.oup.com/2013/11/unknown-financial-crisis-1914/ Accessed 3/14/2019.
Devils Lake World. “Why Not?” 17 April 1914. Devils Lake ND. Page 1.
ND Studies. “North Dakota Agriculture.” https://www.ndstudies.gov/gr4/north-dakota-agriculture/part-1-north-dakota-agriculture/section-14-troubles-farm-1914-–1930 Accessed 3/14/2019.
Business Ed. “The History of Recessions.” https://bebusinessed.com/history/the-history-of-recessions/ Accessed 3/14/2019.
