Edward Kellogg (economist)

Edward Kellogg (October 1, 1790 – April 29, 1858) was an American merchant, inventor, and economist who advocated for monetary reform, particularly a stable currency issued by the government. His ideas influenced the Greenback movement of the late 19th century in the United States.

Kellogg was born in Norwalk, Connecticut. He engaged in mercantile pursuits in New York City for many years, accumulating a substantial fortune. He retired from business around 1847 and devoted his time to studying political economy and developing his theories on monetary reform.

Kellogg’s major work was Labor and Other Capital: The Rights of Each Secured and the Wrongs of Both Eradicated (1849, revised and reissued in 1861 as A New Monetary System). In this book, he argued that the value of money should be based on the average price of labor and commodities, thereby creating a stable currency immune to fluctuations in the market. He believed that a national currency, issued and regulated by the government based on a stable index, would eliminate the boom and bust cycles he observed in the economy and would promote greater economic equality. Kellogg was critical of the existing banking system, which he believed profited from the instability of the currency and exploited the working class. He envisioned a system where the government would lend money directly to producers at a low interest rate, allowing them to invest in productive enterprises without being burdened by excessive debt.

Kellogg's ideas, though largely dismissed by mainstream economists of his time, gained traction among populist and agrarian movements in the post-Civil War era. His writings were widely circulated by the Greenback Party, which advocated for a paper currency not backed by gold or silver, and his theories influenced their platform. While the Greenback movement ultimately failed to achieve its primary goals, Kellogg’s advocacy for a stable, government-controlled currency left a lasting impact on American political and economic thought. He died in New York City.