The book The Wonderful Wizard of Oz, by L. Frank Baum,
is one of the most famous of American children’s stories and the inspiration of
a movie classic that is shown annually on television in the United States. What
is often lost in the movie is that the book, published in 1900, incorporated
allegorically an important monetary debate in the United States in the
1890s.
The book was written against the background of the free silver movement in
the United States. From 1880 until 1896 the United States saw the average level
of prices fall by 23 percent, a strong downdraft of deflation that worked a
severe hardship on debtors, mostly farmers of the South and West. The bankers
and financiers concentrated in the Northeast benefited from the deflation. One
proposal for mitigating the hardship of deflation was to supplement the money supply, then tied to the gold standard, with silver,
creating a bimetallic standard of gold and silver to replace the gold standard.
Under a bimetallic standard both silver and gold could be minted and circulated
as money. The infusion of silver would put an end to deflation by increasing the
amount of money in circulation.
The political agitation for a bimetallic standard was called the free silver
movement. Its most memorable spokesman, William Jennings Bryan, four times a
presidential candidate, said in one of the epochal orations in American history:
“You shall not press down upon the brow of labor this crown of thorns, you shall
not crucify mankind upon a cross of gold.” The “cross of gold” referred to the
gold standard.
In the Wonderful Wizard of Oz, the heroine Dorothy represents
traditional American values—honesty, kindheartedness, and pluck. The cyclone,
representing the free silver agitation, carries Dorothy to the land of “Oz,” as
in ounce (oz) of gold, where the gold standard reigns unchallenged. When
Dorothy’s house lands on the Wicked Witch of the East, the Witch dries up,
leaving only her silver shoes, which become Dorothy’s. The silver shoes (which
were changed to ruby in the movie version) possess a magical power, representing
the magical advantages of adding silver to the money supply.
Dorothy cannot find out how to return to Kansas, but learns that she should
follow the yellow brick road that leads to the Emerald City. The yellow brick
road represents the gold standard and the Emerald City represents Washington,
D.C. On her journey to the Emerald City Dorothy is joined by the Scarecrow,
representing western farmers, the Tin Woodman, representing the industrial
worker, and the Cowardly Lion, representing William Jennings Bryan. The joints
of the Tin Woodman had become rusty because the depression of the 1890s had put
the industrial workers out of work.
The Cowardly Lion goes to sleep in the poppy field that represents all the
issues, such as anti-imperialism and antitrust, that threatened to distract
Bryan away from the central issue of the free silver movement in the 1900
presidential election.
Dorothy’s group reaches the Emerald City, where everyone looks through
green-colored glasses, as in money-colored glasses. Everyone in the city,
including Dorothy’s group, must wear the glasses and they are locked on with a
gold buckle, another reference to the gold standard. In other words, the
financial establishment of the city required that everything be looked at from
the perspective of money.
Dorothy and her friends reach the Emerald Palace, representing the White
House, and Dorothy is led to her room through seven passages and up three
flights of stairs, a reference to the Crime of ’73, an act of legislation passed
in 1873 that eliminated the coinage of silver. The next day the group meets the
Wizard, who was probably Marcus Alonzo Hanna, the chairman of the Republican
Party and the brains behind President McKinley’s presidency. The Wizard sends
the group to find and destroy the Wicked Witch of the West, which may have been
President McKinley himself. Dorothy’s group finds the Wicked Witch of the West,
who, knowing the magical power of the silver slippers, snatches one of Dorothy’s
slippers in a trick. The separation of the silver slippers, destroying their
magical power, refers to the efforts of the Republican Party to diffuse the
silver issue by calling for an international conference on the subject. Dorothy
angrily pours a bucket of water on the Wicked Witch of the West, destroying her,
and getting back her slipper.
Dorothy with her friends returns to the Emerald City, expecting the Wizard to
tell her how to return to Kansas. The Wizard turns out to be a fraud and Dorothy
seeks out the Good Witch of the South. The South is ruled by a good witch
because the South was sympathetic with the free silver movement. The Good Witch
of the South tells Dorothy that she can return to Kansas if she clicks her
silver slippers together three times, representing the magical power of silver
to solve the problems of the western farmers, made possible by the support of
the South.
Despite the agitation for free silver, the United States remained on the gold
standard. Discoveries of gold in Alaska, Australia, and South Africa
substantially increased the world supply of gold, ending the era of tight money.
From 1896 until 1910 prices rose 35 percent in the United States, diffusing the
social protest that found its expression in the Wonderful Wizard of
Oz.
See also:
References:
Littlefield, Henry M. 1964. The Wizard of Oz: Parable on Populism.
American Quarterly, 16 (Spring): 47–58.
Rockoff, Hugh. 1990. The Wizard of Oz as a Monetary
Allegory. Journal of Political Economy, 98, no. 4: 739–760.