document_title: U.S. history of alcohol minimum purchase age by state

question_text: when was the drinking age changed to 21 in the us

text: The alcohol laws of the United States regarding minimum age for purchase have changed over time. The history is given in the table below. Unless otherwise noted, if different alcohol categories have different minimum purchase ages, the age listed below is set at the lowest age given (e.g. if the purchase age is 18 for beer and 21 for wine or spirits, as was the case in several states, the age in the table will read as "18", not "21"). In addition, the purchase age is not necessarily the same as the minimum age for consumption of alcoholic beverages, although they have often been the same.

text: As one can see in the table below, there has been much volatility in the states' drinking ages since the repeal of Prohibition in 1933. Shortly after the ratification of the 21st amendment in December, most states set their purchase ages at 21 since that was the Voting age at the time. Most of these limits remained constant until the early 1970s. From 1969 to 1976, some 30 states lowered their purchase ages, generally to 18. This was primarily because the voting age was lowered from 21 to 18 in 1971 with the 26th amendment. A lot of states started to lower their minimum drinking age in response, most of this occurring in 1972 or 1973.[1][2][3] Twelve states kept their purchase ages at 21 since repeal of Prohibition and never changed them.

text: From 1976 to 1983, several states voluntarily raised their purchase ages to 19 (or, less commonly, 20 or 21), in part to combat drunk driving fatalities.[citation needed] In 1984, Congress passed the National Minimum Drinking Age Act, which required states to raise their ages for purchase and public possession to 21 by October 1986 or lose 10% of their federal highway funds. By mid-1988, all 50 states and the District of Columbia had raised their purchase ages to 21 (but not Puerto Rico, Guam, or the Virgin Islands, see Additional Notes below). South Dakota and Wyoming were the final two states to comply with the age 21 mandate. The current drinking age of 21 remains a point of contention among many Americans, because of it being higher than the age of majority (18 in most states) and higher than the drinking ages of most other countries. The National Minimum Drinking Age Act is also seen as a congressional sidestep of the tenth amendment. Although debates have not been highly publicized, a few states have proposed legislation to lower their drinking age,[4] while Guam has raised its drinking age to 21 in July 2010.[5]

text:
State
Pre-Prohibition
(prior to 1919)
Post-Prohibition
(after 1933)
1970s / 26th Amendment
(adopted in 1971)
1980s /
Drinking Age Act of 1984
21st century

Alabama
Pre 1881:
None
1881:
21 (none with consent of parent)[6]
21
1970:
Lowered to 19[7]
1986:
Raised to 21[8]
21 (no one underage is allowed consumption Section 28-1)

Alaska
 ?
21[7]
1970:
Lowered to 19[9]
1984:
Raised to 21 with grandfather clause (if born before January 1, 1965)[10][11]
21

Arizona
 ?
21[11]
1972:
Lowered to 19[12][13]
1985:
Raised to 21[8]
21

Arkansas
Pre 1925:
None[7]
1925:
21[7]
21
21[14]
21 [8]
21

California
Pre 1891:
Regulated by municipality/county (common age was 16)[15][16][17]
1891:
18 (statewide)[18]
1933:
21[7]
21
21 [8]
21 (except small amounts for religious ceremonies)

Colorado
None[11]
1945:
18: for beer
21: for wine and liquor[7]
18 [19]
Raised to 21 in 1987 [8]
21

Connecticut
 ?
21 [11]
1972:
Lowered to 18[20]
1982:
Raised to 19
1983:
Raised to 20
1985:
Raised to 21[21]
21 (exemptions: (1) a person over age eighteen who is an employee or permit holder under section 30-90a and who possesses alcoholic liquor in the course of such person’s employment or business, (2) a minor who possesses alcoholic liquor on the order of a practicing physician, or (3) a minor who possesses alcoholic liquor while accompanied by a parent, guardian or spouse of the minor, who has attained the age of twenty-one. Nothing in this subsection shall be construed to burden a person’s exercise of religion under section 3 of article first of the Constitution of the state in violation of subsection (a) of section 52-571b.[22]

Delaware
 ?
21 [11]
1972:
Lowered to 20[13]
1984:
Raised to 21[8]
21

District of Columbia
 ?
18: for beer and wine[11]
21: for liquor[23][24]
18: for beer and wine[13][24]
21: for liquor
1986:
Raised to 21 with grandfather clause.[25][26]
21

Florida
 ?
18[7]
1972:
19 [27]
1985:
Raised to 21 with grandfather clause [27]
21 [28]

Georgia
 ?
21 [11]
1972:
Lowered to 18[12]
1984:
Raised to 19[14]
1985:
Raised to 20[14]
1986:
Raised to 21[14]
21

Hawaii
 ?
21[7]
1972:
Lowered to 18[13]
1986:
Raised to 21[8]
21

Idaho
 ?
20: for beer[29][30]
21: for wine and liquor[11][31]
1972:
Lowered to 19 (all)[13][32]
1987:
Raised to 21 in 1987 (Apr 11) with grandfather clause[8][33]
21

Illinois
1872:
Age of majority
(none with written consent of parent)[34]
pre 1961: Age of majority 1961: Raised to 21 [35]
1973:
Lowered to 19: for beer and wine
21: for liquor[36]
1980:
Raised to 21[37]
21

Indiana
 ?
Post-1934:
21[7]
21[14]
21[8]
21

Iowa
 ?
21[7]
1972:
Lowered to 19 in 1972 (Jul 1)
1973:
Lowered to 18 in 1973 (Jul 1)
1978:
Raised to 19 in 1978 (Jul 1)[38]
1986:
Raised to 21 in 1986 (Jul 1) with grandfather clause.[14][38]
21

Kansas
 ?
1949:
18: for beer and wine with less than 4% ABV
21: for liquor[7]
18: for beer and wine with less than 4% ABV[14]
21: for beer and wine with 4% ABV or more[14]
21: for liquor[14][19]
1985:
Raised to 21[8]
21 (However, anyone under 21 may consume cereal malt beverages with parental supervision on their own property)

Kentucky
 ?
1938:
21[7]
21[14]
21[8]
21

Louisiana
 ?
As of 1948:
18[13]
18[19]
1987:
Raised to 21 de jure in 1987,[8]
but de facto age was still 18 until 1995 due to a sale loophole.
1995:
De facto age raised to 21 in 1995 when loophole was closed.[39]
1996:
In 1996, briefly lowered by Louisiana Supreme Court to 18 until it reversed its decision, raising to 21 three months later.[40]
Other exceptions still remain.[41]
21

Maine
 ?
21[7]
1969:
Lowered to 20
1972:
Lowered to 18[12]
1977:
Raised to 20[8][42]
1985:
Raised to 21[8]
21

Maryland
 ?
21[7]
1974:
Lowered to 18: for beer and wine
21: for liquor[43][44]
1982:
Raised to 21 with grandfather clause [8][45]
21 (however anyone can drink when parents, spouses, teachers are present)

Massachusetts
 ?
21 [11]
1973:
Lowered to 18
1979:
Raised to 20 in 1979 (Apr 16)[46][47][48]
Raised to 21 in 1985 [8]
21

Michigan
 ?
21[7]
1972:
Lowered to 18 in 1972 (Jan 1)[49]
1978:
Raised to 19 in 1978 (Dec 3)[50][51]
1978:
Raised to 21 in 1978 (Dec 21), 18 days later.[8]
First state to raise age to 21 since it was lowered
21

Minnesota
 ?
21 [11]
1973:
Lowered to 18
1976:
Raised to 19[52]
First state to raise age after lowering.
1986:
Raised to 21[53]
21

Mississippi
 ?
1966:
18: for beer and wine
21: for liquor[7]
(alcohol not legalized until 1966)
18[19]
Raised to 21 in 1986 [8]
21

Missouri
 ?
1945:
21[7]
21
21 [8]
21

Montana
 ?
21 [11]
1971:
Lowered to 19[54]
1973:
Lowered to 18[55][56]
1979:
Raised to 19
1987:
Raised to 21[8][57]
21

Nebraska
 ?
21[58]
1969:
Lowered to 20
1972:
Lowered to 19[58]
1980:
Raised to 20[14]
1985:
Raised to 21[14]
21

Nevada
 ?
1933:
21[7]
21
21[8]
21

New Hampshire
 ?
21[11]
1973:
Lowered to 18[59]
1979:
Raised to 20
1985:
Raised to 21[8][21]
21

New Jersey
Before 1880:
None
Post-1880:
18 (penalties only against businesses)[60][61][62]
21[citation needed]
1973:
Lowered to 18 [12]
1980:
Raised to 19
1983:
Raised to 21[8][63]
21

New Mexico
 ?
1934:
21[7]
21[14]
21[8]
21

New York
21
18[64]
18
1982:
Raised to 19 in 1982 (Dec)
1985:
Raised to 21 in 1985 (Dec)[21][65][66]
21

North Carolina
 ?
18[11]
18: for beer and wine[19]
21: for liquor
1983:
19: for beer and wine
21: for liquor
1986:
Raised to 21 in 1986 (Sep 1)[8][26]
21

North Dakota
 ?
1936:
21[7]
21[14]
21 [67]
21

Ohio
 ?
1935:
18: for 3.2% ABW beer
21: for beer stronger than 3.2% ABW, wine and liquor[68]
18: for 3.2% ABW beer
21: for beer stronger than 3.2% ABW, wine and liquor
1982 (Aug. 19 to Oct. 1):
19: for 3.2% ABW beer[14]
21: for beer stronger than 3.2% ABW, wine and liquor[14]
1982 (From Oct. 1):
19: beer
21: wine and liquor[69]
1988:
21[14]
21 (However, anyone can drink with parents or legal-age spouse)

Oklahoma
 ?
Men:
21
Women:
18: 3.2% ABW beer
21: for beer stronger than 3.2% ABW, wine and liquor[70]
1976:
Lowered to 18 (for 3.2% ABW beer) for both sexes in 1976 (Dec) [71]
Last state to lower the drinking age.
1983:
Raised to 21[11][72]
21

Oregon
 ?
1933:
21[7]
21
21 [8]
21

Pennsylvania
 ?
1935:
21[7]
21
21 [8][51]
21

Rhode Island
 ?
21[11]
1970:
Lowered to 18[12][73]
1980:
Raised to 19
1981:
Raised to 20
1984:
Raised to 21[21]
21

South Carolina
21[74]
1935:
18: for beer and wine
21: for liquor[7]
18: for beer and wine[19]
21: for liquor
1984:
19: for beer and wine[7]
21: for liquor
1986:
Raised to 21[8]
21

South Dakota
 ?
1934:
21 (all)
1939:
Lowered to 18: for 3.2% beer
Raised to 19: for 3.2% beer[75]
1972:
18: for beer and wine
21: for liquor[13]
1984:
19: for beer and wine
21: for liquor[8]
1988:
Raised to 21[57]
21

Tennessee
Pre 1881:
None
1881:
21[76]
21[7]
1964:
Lowered to 18[7]
1979:
Raised to 19
1984:
Raised to 21[8]
21

Texas
Pre 1909:
21
None (with written permission of parent or guardian)
Post 1909:
21[77][78]
21[7]
1973:
Lowered to 18[79]
1981:
Raised to 19[80]
1986:
Raised to 21 in 1986 (Sep 1)[8][26]
21

Utah
 ?
1935:
21[7]
21[14]
21 [8]
21

Vermont
 ?
21[7]
1971:
Lowered to 18[81][82]
1986:
Raised to 21[21][82]
21

Virginia
 ?
21[83]
1974:
Lowered to 18: for beer and wine
(21: for liquor remained)[83]
1981:
Raised to 19 for off-premises consumption
1983:
Raised to 19 (all beer)
1985:
Raised to 21[83]
21

Washington
"Age of majority"
since 1877 [84]
21[citation needed]
21
21 [8]
21

West Virginia
 ?
18: for beer and wine
21: for liquor[11]
1972:
Lowered to 18 (all)[85]
1983:
Raised to 19
(& 21 for non-residents)[8][42]
1986:
Raised to 21[8]
21

Wisconsin
1839–1866:
18: for wine and liquor
None: for beer
Post-1866:
21 (all)[86]
18: for beer
21: for wine and spirits
1957:
21: for residents of bordering states with age limit 21.[87]
1963:
Raised to 21 (off-premises beer sales, remained 18 for on-premises).[87]
1972:
Lowered to 18 (all) in 1972 (Mar)[87]
1977:
Border state restriction lifted.[87]
1984:
Raised to 19
1986:
Raised to 21 (September 1, 1986)[87]
21 (however anyone can drink when parents, spouses, teachers are present)[citation needed]

Wyoming
 ?
21[7]
1973:
Lowered to 19[13]
1988:
Raised to 21 in 1988 (Jul 1)[88][89]
Last state to raise de jure drinking age to 21
21

American Samoa
 ?
 ?
 ?
21?
21 [90]

Northern Mariana Islands
–
–
 ?
21?
21 [91]

Puerto Rico
 ?
18
18
Kept at 18
despite 10% highway funding
penalty under Drinking Age Act.
18 [92]

Virgin Islands
 ?
 ?
 ?
18
18 [93]

Guam
 ?
21?
18
18
Raised to 21 in 2010 [5]

text: Additional notes[edit]

text:
Contrary to popular belief, since the National Minimum Drinking Age Act of 1984, not all states specifically prohibit minors' and young adults' consumption of alcohol in private settings. That is because the federal law is concerned only with purchase and public possession, not private consumption, and contains several exceptions. As of January 1, 2007, 14 states and the District of Columbia ban underage consumption outright, 19 states do not specifically ban underage consumption outright, and 17 states have family member or location exceptions to their underage consumption laws. Federal law explicitly provides for religious, medical, employment and private club possession exceptions; as of 2005, 31 states have family member or location exceptions to their underage possession laws.[41]
In the 1960s the age for buying or drinking beer and wine in the District of Columbia (Washington, D.C.) was 18; the age for hard liquor was 21.[23][24] Residents from Virginia and Maryland would often drive to D.C. to obtain alcohol. In Louisiana, the 1987 law raising the age from 18 to 21 was deliberately written solely to comply with the National Minimum Drinking Age Act of 1984 to avoid losing highway funding, while still allowing 18- to 20-year-olds to drink as before. Not only did it still allow 18- to 20-year-olds to consume in private, it contained a major loophole allowing bars and stores to sell alcohol to 18- to 20-year-olds without penalty (despite purchase being technically illegal) which meant that the de facto age was still 18.[39] In other words, the drinking age was 21 only on paper. This loophole was closed in 1995, but in 1996 the Louisiana Supreme Court declared a drinking age of 21 unconstitutional.[39] That briefly lowered the de jure purchase age to 18, causing an uproar which prompted the Louisiana Supreme Court to reverse its decision, raising the age to 21 three months later.[40] Other exceptions still remain to this day, including drinking in a private residence,[41] and Louisiana still has some of the most liberal general alcohol laws of any state.
Some states were "dry" well before national Prohibition was enacted in 1919, in some cases since achieving statehood. Also, some states did not become fully "wet" until several years after the repeal of Prohibition in 1933 (e.g. Mississippi in 1966). Since 1966, all states and territories of the USA have been "wet", but dry counties and towns still exist in some states.


document_title: Palpation

question_text: which examination method do physicians use to determine the range of motion of a joint

root

text: Palpation

text: Uses[edit]

text: Palpation is used by physicians, as well as chiropractors, massage therapists, physical therapists, osteopaths and occupational therapists, to assess the texture of a patient's tissue (such as swelling or muscle tone), to locate the spatial coordinates of particular anatomical landmarks (e.g., to assess range and quality of joint motion), and assess tenderness through tissue deformation (e.g. provoking pain with pressure or stretching). In summary, palpation might be used either to determine painful areas and to qualify pain felt by patients, or to locate three-dimensional coordinates of anatomical landmarks to quantify some aspects of the palpated subject.

tag: p

text: Palpation is typically used for thoracic and abdominal examinations, but can also be used to diagnose edema and to measure the pulse. It is used by veterinarians to check animals for pregnancy, and by midwives to determine the position of a fetus.

text: Quantitative palpation of anatomical landmarks for measurements must occur according to strict protocols if one wishes to achieve reproducible measurements. Palpation protocols are usually based on well-described definitions for the location of anatomical, usually skeletal, landmarks.

text: Locating anatomical landmarks[edit]

text: Locating anatomical landmarks can be performed using two palpation protocols: 1) manual palpation that allows the spatial location of landmarks using hands combined or not with three-dimensional (3D) digitizing, and 2) virtual palpation on 3D computer models obtained, for example, from medical imaging.

text:
Manual palpation of skeletal landmarks combined with 3D digitizing (see text below for explanations).

Virtual palpation of skeletal landmarks.

tag: ul

text:
Manual palpation of skeletal landmarks (illustrated here on a patient's shoulder, see left image). The gauntlet on the palpating hand (left) allows to locate the spatial coordinates of the palpated landmarks with a satisfactory accuracy (below 1 cm). Reflective markers are part of the scientific protocol and allow further quantified motion analysis for joint disorders follow-up.
Virtual palpation of skeletal landmarks located on a 3D bone model (illustrated here on a patient's knee model obtained from medical imaging, see right image). Colored spheres on bones indicate palpated skeletal landmarks. This method combined with quantified manual palpation allows subject-specific visualization of joint behavior during particular motion tasks (e.g., walking, stair climbing, etc.).

text: The above protocols can be used independently. Manual palpation is used in clinical activities for various aims: - identification of painful areas; - positioning of particular pieces of equipment (electromyography electrodes, auscultation, external landmarks used in clinical motion analysis or body surface scanning); or - measurements of morphological parameters (e.g., limb length). Virtual palpation alone is useful to quantify individual morphological parameters from medical imaging: - limb length; - limb orientation; - joint angle; or - distance between various skeletal locations.

text: Combining data from both manual and virtual palpation protocols allows achieving supplementary analysis: - registration protocols aiming at building reference frames for motion representation according reproducible clinical conventions; - to modelize joint kinematics accurately during musculoskeletal analysis; - to align precisely orthopedic tools according to the individual anatomy of a patient; or - to wrap and to scale surface textures to motion data when creating animation characters.

text: Use of standardized definitions for the above activities allows better result comparison and exchange;[2] this is a key element for patient follow-up or the elaboration of quality clinical and research databases. Such definitions also allow acceptable repeat ability by individuals with different backgrounds (physiotherapists, medical doctors, nurses, engineers, etc.). If applied strictly, these definitions allow better data exchange and result comparison thanks to standardization of the procedure. Without anatomical landmark standardization, palpation is prone to error and poorly reproducible.

text: Elastography[edit]

text: Nowadays, the medical imaging modality of elastography can also be used to determine the stiffness of tissues. Manual palpation suffers from several important limitations: it is limited to tissues accessible to the physician's hand, it is distorted by any intervening tissue, and it is qualitative but not quantitative. Elastography is able to overcome many these challenges and improve on the benefits of palpation.

text: Elastography is a relatively new technology and entered the clinic primarily in the last decade. The most prominent techniques use ultrasound or magnetic resonance imaging (MRI) to make both the stiffness map and an anatomical image for comparison.

text: Computerized palpation[edit]

text: While not widespread amongst elastography methods, computerized palpation is of interest here because it essentially uses palpation to measure the stiffness, whereas other techniques will obtain data using other methods. Computerized palpation is also called "Tactile Imaging", "Mechanical imaging" or "Stress imaging", is a medical imaging modality that translates the sense of touch into a digital image. The tactile image is a function of P(x,y,z), where P is the pressure on soft tissue surface under applied deformation and x,y,z are coordinates where pressure P was measured. Tactile imaging closely mimics manual palpation, since the probe of the device with a pressure sensor array mounted on its face acts similar to human fingers during clinical examination, slightly deforming soft tissue by the probe and detecting resulting changes in the pressure pattern.

text: Palpation under general anesthesia[edit]

text: Palpation under general anesthesia is sometimes necessary, such as when there is a need to palpate structures deep in the abdominal or pelvic cavity, since it would otherwise cause considerable patient discomfort and subsequent contraction of the abdominal muscles which would make the examination difficult.[3] It is used, for example, in the staging of cervical cancer.


document_title: Monetary policy of the United States

question_text: what organization sets monetary policy for the united states

text: Monetary policy of the United States

text: Money supply[edit]

text: The money supply has different components, generally broken down into "narrow" and "broad" money, reflecting the different degrees of liquidity ('spendability') of each different type, as broader forms of money can be converted into narrow forms of money (or may be readily accepted as money by others, such as personal checks).[1]

text: For example, demand deposits are technically promises to pay on demand, while savings deposits are promises to pay subject to some withdrawal restrictions, and Certificates of Deposit are promises to pay only at certain specified dates; each can be converted into money, but "narrow" forms of money can be converted more readily. The Federal Reserve directly controls only the most narrow form of money, physical cash outstanding along with the reserves of banks throughout the country (known as M0 or the monetary base); the Federal Reserve indirectly influences the supply of other types of money.[1]

text: Broad money includes money held in deposit balances in banks and other forms created in the financial system. Basic economics also teaches that the money supply shrinks when loans are repaid;[2][3] however, the money supply will not necessarily decrease depending on the creation of new loans and other effects. Other than loans, investment activities of commercial banks and the Federal Reserve also increase and decrease the money supply.[4] Discussion of "money" often confuses the different measures and may lead to misguided commentary on monetary policy and misunderstandings of policy discussions.[5]

text: Structure of modern US institutions[edit]

text: Federal Reserve[edit]

text: Monetary policy in the US is determined and implemented by the US Federal Reserve System, commonly referred to as the Federal Reserve. Established in 1913 by the Federal Reserve Act to provide central banking functions,[6] the Federal Reserve System is a quasi-public institution. Ostensibly, the Federal Reserve Banks are 12 private banking corporations;[7][8][9] they are independent in their day-to-day operations, but legislatively accountable to Congress through the auspices of Federal Reserve Board of Governors.

text: The Board of Governors is an independent governmental agency consisting of seven officials and their support staff of over 1800 employees headquartered in Washington, D.C.[10] It is independent in the sense that the Board currently operates without official obligation to accept the requests or advice of any elected official with regard to actions on the money supply,[11] and its methods of funding also preserve independence. The Governors are nominated by the President of the United States, and nominations must be confirmed by the U.S. Senate.[12]

text: The presidents of the Federal Reserve Banks are nominated by each bank's respective Board of Directors, but must also be approved by the Board of Governors of the Federal Reserve. The Chairman of the Federal Reserve Board is generally considered to have the most important position, followed by the president of the Federal Reserve Bank of New York.[12] The Federal Reserve System is primarily funded by interest collected on their portfolio of securities from the US Treasury, and the Fed has broad discretion in drafting its own budget,[13] but, historically, nearly all the interest the Federal Reserve collects is rebated to the government each year.[14]

text: The Federal Reserve has three main mechanisms for manipulating the money supply. It can buy or sell treasury securities. Selling securities has the effect of reducing the monetary base (because it accepts money in return for purchase of securities), taking that money out of circulation. Purchasing treasury securities increases the monetary base (because it pays out hard currency in exchange for accepting securities). Secondly, the discount rate can be changed. And finally, the Federal Reserve can adjust the reserve requirement, which can affect the money multiplier; the reserve requirement is adjusted only infrequently, and was last adjusted in 1992.[15]

text: In practice, the Federal Reserve uses open market operations to influence short-term interest rates, which is the primary tool of monetary policy. The federal funds rate, for which the Federal Open Market Committee announces a target on a regular basis, reflects one of the key rates for interbank lending. Open market operations change the supply of reserve balances, and the federal funds rate is sensitive to these operations.[16]

text: In theory, the Federal Reserve has unlimited capacity to influence this rate, and although the federal funds rate is set by banks borrowing and lending funds to each other, the federal funds rate generally stays within a limited range above and below the target (as participants are aware of the Fed's power to influence this rate).

text: Assuming a closed economy, where foreign capital or trade does not affect the money supply, when money supply increases, interest rates go down. Businesses and consumers have a lower cost of capital and can increase spending and capital improvement projects. This encourages short-term growth. Conversely, when the money supply falls, interest rates go up, increasing the cost of capital and leading to more conservative spending and investment. The Federal reserve increases interest rates to combat Inflation.

text: U.S. Treasury[edit]

text: This section needs expansion with: discuss Comptroller of Currency, maybe. You can help by adding to it. (February 2008)

tag: table

text: Private commercial banks[edit]

text: When money is deposited in a bank, it can then be lent out to another person. If the initial deposit was $100 and the bank lends out $100 to another customer the money supply has increased by $100. However, because the depositor can ask for the money back, banks have to maintain minimum reserves to service customer needs. If the reserve requirement is 10% then, in the earlier example, the bank can lend $90 and thus the money supply increases by only $90. The reserve requirement therefore acts as a limit on this multiplier effect. Because the reserve requirement only applies to the more narrow forms of money creation (corresponding to M1), but does not apply to certain types of deposits (such as time deposits), reserve requirements play a limited role in monetary policy.[17]

text: Money creation[edit]

text: Currently, the US government maintains over US$800 billion in cash money (primarily Federal Reserve Notes) in circulation throughout the world,[18][19] up from a sum of less than $30 billion in 1959. Below is an outline of the process which is currently used to control the amount of money in the economy. The amount of money in circulation generally increases to accommodate money demanded by the growth of the country's production. The process of money creation usually goes as follows:

text:
Banks go through their daily transactions. Of the total money deposited at banks, significant and predictable proportions often remain deposited, and may be referred to as "core deposits." Banks use the bulk of "non-moving" money (their stable or "core" deposit base) by loaning it out.[20] Banks have a legal obligation to keep a certain fraction of bank deposit money on-hand at all times.[21]
In order to raise additional money to cover excess spending, Congress increases the size of the National Debt by issuing securities typically in the form of a Treasury Bond[22] (see United States Treasury security). It offers the Treasury security for sale, and someone pays cash to the government in exchange. Banks are often the purchasers of these securities, and these securities currently play a crucial role in the process.
The 12-person Federal Open Market Committee, which consists of the heads of the Federal Reserve System (the seven Federal governors and five bank presidents), meets eight times a year to determine how they would like to influence the economy.[23] They create a plan called the country's "monetary policy" which sets targets for things such as interest rates.[24]
Every business day, the Federal Reserve System engages in Open market operations.[25] If the Federal Reserve wants to increase the money supply, it will buy securities (such as U.S. Treasury Bonds) anonymously from banks in exchange for dollars. If the Federal Reserve wants to decrease the money supply, it will sell securities to the banks in exchange for dollars, taking those dollars out of circulation.[26][27] When the Federal Reserve makes a purchase, it credits the seller's reserve account (with the Federal Reserve). The money that it deposits into the seller's account is not transferred from any existing funds, therefore it is at this point that the Federal Reserve has created High-powered money.
By means of open market operations, the Federal Reserve affects the free reserves of commercial banks in the country.[28] Anna Schwartz explains that "if the Federal Reserve increases reserves, a single bank can make loans up to the amount of its excess reserves, creating an equal amount of deposits".[26][27][29]
Since banks have more free reserves, they may loan out the money, because holding the money would amount to accepting the cost of foregone interest[28][30] When a loan is granted, a person is generally granted the money by adding to the balance on their bank account.[31]
This is how the Federal Reserve's high-powered money is multiplied into a larger amount of broad money, through bank loans; as written in a particular case study, "as banks increase or decrease loans, the nation's (broad) money supply increases or decreases."[3] Once granted these additional funds, the recipient has the option to withdraw physical currency (dollar bills and coins) from the bank, which will reduce the amount of money available for further on-lending (and money creation) in the banking system.[32]
In many cases, account-holders will request cash withdrawals, so banks must keep a supply of cash handy. When they believe they need more cash than they have on hand, banks can make requests for cash with the Federal Reserve. In turn, the Federal Reserve examines these requests and places an order for printed money with the US Treasury Department.[33] The Treasury Department sends these requests to the Bureau of Engraving and Printing (to make dollar bills) and the Bureau of the Mint (to stamp the coins).
The U.S. Treasury sells this newly printed money to the Federal Reserve for the cost of printing.[citation needed] This is about 6 cents per bill for any denomination.[34] Aside from printing costs, the Federal Reserve must pledge collateral (typically government securities such as Treasury bonds) to put new money, which does not replace old notes, into circulation.[35] This printed cash can then be distributed to banks, as needed.

tag: ol

text: Though the Federal Reserve authorizes and distributes the currency printed by the Treasury (the primary component of the narrow monetary base), the broad money supply is primarily created by commercial banks through the money multiplier mechanism.[29][31][36][37] One textbook summarizes the process as follows:

text: "The Fed" controls the money supply in the United States by controlling the amount of loans made by commercial banks. New loans are usually in the form of increased checking account balances, and since checkable deposits are part of the money supply, the money supply increases when new loans are made ...[38]

text: This type of money is convertible into cash when depositors request cash withdrawals, which will require banks to limit or reduce their lending.[39][32] The vast majority of the broad money supply throughout the world represents current outstanding loans of banks to various debtors.[38][40][41] A very small amount of U.S. currency still exists as "United States Notes", which have no meaningful economic difference from Federal Reserve notes in their usage, although they departed significantly in their method of issuance into circulation. The currency distributed by the Federal Reserve has been given the official designation of "Federal Reserve Notes."[42]

text: Significant effects[edit]

text: In 2005, the Federal Reserve held approximately 9% of the national debt[43] as assets against the liability of printed money. In previous periods, the Federal Reserve has used other debt instruments, such as debt securities issued by private corporations. During periods when the national debt of the United States has declined significantly (such as happened in fiscal years 1999 and 2000), monetary policy and financial markets experts have studied the practical implications of having "too little" government debt: both the Federal Reserve and financial markets use the price information, yield curve and the so-called risk free rate extensively.[44]

text: Experts are hopeful that other assets could take the place of National Debt as the base asset to back Federal Reserve notes, and Alan Greenspan, long the head of the Federal Reserve, has been quoted as saying, "I am confident that U.S. financial markets, which are the most innovative and efficient in the world, can readily adapt to a paydown of Treasury debt by creating private alternatives with many of the attributes that market participants value in Treasury securities."[45] In principle, the government could still issue debt securities in significant quantities while having no net debt, and significant quantities of government debt securities are also held by other government agencies.

text: Although the U.S. government receives income overall from seigniorage, there are costs associated with maintaining the money supply.[41][46] Leading ecological economist and steady-state theorist Herman Daly, claims that "over 95% of our [broad] money supply [in the United States] is created by the private banking system (demand deposits) and bears interest as a condition of its existence,"[41] a conclusion drawn from the Federal Reserve's ultimate dependence on increased activity in fractional reserve lending when it exercises open market operations.[47] Economist Eric Miller criticizes Daly's logic because money is created in the banking system in response to demand for the money,[48] which justifies cost.[citation needed]

text: Thus, use of expansionary open market operations typically generates more debt in the private sector of society (in the form of additional bank deposits).[49] The private banking system charges interest to borrowers as a cost to borrow the money.[3][31][50] The interest costs are borne by those that have borrowed,[3][31] and without this borrowing, open market operations would be unsuccessful in maintaining the broad money supply,[30] though alternative implementations of monetary policy could be used. Depositors of funds in the banking system are paid interest on their savings (or provided other services, such as checking account privileges or physical security for their "cash"), as compensation for "lending" their funds to the bank.

text: Increases (or contractions) of the money supply corresponds to growth (or contraction) in interest-bearing debt in the country.[3][30][41] The concepts involved in monetary policy may be widely misunderstood in the general public, as evidenced by the volume of literature on topics such as "Federal Reserve conspiracy" and "Federal Reserve fraud."[51]

text: Uncertainties[edit]

text: A few of the uncertainties involved in monetary policy decision making are described by the federal reserve:[52]

text:
While these policy choices seem reasonably straightforward, monetary policy makers routinely face certain notable uncertainties. First, the actual position of the economy and growth in aggregate demand at any time are only partially known, as key information on spending, production, and prices becomes available only with a lag. Therefore, policy makers must rely on estimates of these economic variables when assessing the appropriate course of policy, aware that they could act on the basis of misleading information. Second, exactly how a given adjustment in the federal funds rate will affect growth in aggregate demand—in terms of both the overall magnitude and the timing of its impact—is never certain. Economic models can provide rules of thumb for how the economy will respond, but these rules of thumb are subject to statistical error. Third, the growth in aggregate supply, often called the growth in potential output, cannot be measured with certainty.
In practice, as previously noted, monetary policy makers do not have up-to-the-minute information on the state of the economy and prices. Useful information is limited not only by lags in the collection and availability of key data but also by later revisions, which can alter the picture considerably. Therefore, although monetary policy makers will eventually be able to offset the effects that adverse demand shocks have on the economy, it will be some time before the shock is fully recognized and—given the lag between a policy action and the effect of the action on aggregate demand—an even longer time before it is countered. Add to this the uncertainty about how the economy will respond to an easing or tightening of policy of a given magnitude, and it is not hard to see how the economy and prices can depart from a desired path for a period of time.
The statutory goals of maximum employment and stable prices are easier to achieve if the public understands those goals and believes that the Federal Reserve will take effective measures to achieve them.
Although the goals of monetary policy are clearly spelled out in law, the means to achieve those goals are not. Changes in the FOMC's target federal funds rate take some time to affect the economy and prices, and it is often far from obvious whether a selected level of the federal funds rate will achieve those goals.

text: Opinions of the Federal Reserve[edit]

text: The Federal Reserve is lauded by some economists, while being the target of scathing criticism by other economists, legislators, and sometimes members of the general public. The former Chairman of the Federal Reserve Board, Ben Bernanke, is one of the leading academic critics of the Federal Reserve's policies during the Great Depression.[53]

text: Achievements[edit]

text: One of the functions of a central bank is to facilitate the transfer of funds through the economy, and the Federal Reserve System is largely responsible for the efficiency in the banking sector. There have also been specific instances which put the Federal Reserve in the spotlight of public attention. For instance, after the stock market crash in 1987, the actions of the Fed are generally believed to have aided in recovery. Also, the Federal Reserve is credited for easing tensions in the business sector with the reassurances given following the 9/11 terrorist attacks on the United States.[54]

text: Criticisms[edit]

text: The Federal Reserve has been the target of various criticisms, involving: accountability, effectiveness, opacity, inadequate banking regulation, and potential market distortion. Federal Reserve policy has also been criticized for directly and indirectly benefiting large banks instead of consumers. For example, regarding the Federal Reserve's response to the 2007–2010 financial crisis, Nobel laureate Joseph Stiglitz explained how the U.S. Federal Reserve was implementing another monetary policy—creating currency—as a method to combat the liquidity trap.[55]

text: By creating $600 billion and inserting this directly into banks the Federal Reserve intended to spur banks to finance more domestic loans and refinance mortgages. However, banks instead were spending the money in more profitable areas by investing internationally in emerging markets. Banks were also investing in foreign currencies which Stiglitz and others point out may lead to currency wars while China redirects its currency holdings away from the United States.[56]

text: Auditing[edit]

text: The Federal Reserve is subject to different requirements for transparency and audits than other government agencies, which its supporters claim is another element of the Fed's independence. Although the Federal Reserve has been required by law to publish independently audited financial statements since 1999, the Federal Reserve is not audited in the same way as other government agencies. Some confusion can arise because there are many types of audits, including: investigative or fraud audits; and financial audits, which are audits of accounting statements; there are also compliance, operational, and information system audits.

text: The Federal Reserve's annual financial statements are audited by an outside auditor. Similar to other government agencies, the Federal Reserve maintains an Office of the Inspector General, whose mandate includes conducting and supervising "independent and objective audits, investigations, inspections, evaluations, and other reviews of Board programs and operations."[57] The Inspector General's audits and reviews are available on the Federal Reserve's website.[58][59]

text: The Government Accountability Office (GAO) has the power to conduct audits, subject to certain areas of operations that are excluded from GAO audits; other areas may be audited at specific Congressional request, and have included bank supervision, government securities activities, and payment system activities.[60][61] The GAO is specifically restricted any authority over monetary policy transactions;[60] the New York Times reported in 1989 that "such transactions are now shielded from outside audit, although the Fed influences interest rates through the purchase of hundreds of billions of dollars in Treasury securities."[62] As mentioned above, it was in 1999 that the law governing the Federal Reserve was amended to formalize the already-existing annual practice of ordering independent audits of financial statements for the Federal Reserve Banks and the Board;[63] the GAO's restrictions on auditing monetary policy continued, however.[61]

text: Congressional oversight on monetary policy operations, foreign transactions, and the FOMC operations is exercised through the requirement for reports and through semi-annual monetary policy hearings.[61] Scholars have conceded that the hearings did not prove an effective means of increasing oversight of the Federal Reserve, perhaps because "Congresspersons prefer to bash an autonomous and secretive Fed for economic misfortune rather than to share the responsibility for that misfortune with a fully accountable Central Bank," although the Federal Reserve has also consistently lobbied to maintain its independence and freedom of operation.[64]

text: Fulfillment of wider economic goals[edit]

text: By law, the goals of the Fed's monetary policy are: high employment, sustainable growth, and stable prices.[65]

text: Critics say that monetary policy in the United States has not achieved consistent success in meeting the goals that have been delegated to the Federal Reserve System by Congress. Congress began to review more options with regard to macroeconomic influence beginning in 1946 (after World War II), with the Federal Reserve receiving specific mandates in 1977 (after the country suffered a period of stagflation).

text: Throughout the period of the Federal Reserve following the mandates, the relative weight given to each of these goals has changed, depending on political developments.[citation needed] In particular, the theories of Keynesianism and monetarism have had great influence on both the theory and implementation of monetary policy, and the "prevailing wisdom" or consensus view of the economic and financial communities has changed over the years.[66]

text: Elastic currency (magnitude of the money multiplier): the success of monetary policy is dependent on the ability to strongly influence the supply of money available to the citizens. If a currency is highly "elastic" (that is, has a higher money multiplier, corresponding to a tendency of the financial system to create more broad money for a given quantity of base money), plans to expand the money supply and accommodate growth are easier to implement. Low elasticity was one of many factors that contributed to the depth of the Great Depression: as banks cut lending, the money multiplier fell, and at the same time the Federal Reserve constricted the monetary base. The depression of the late 1920s is generally regarded as being the worst in the country's history, and the Federal Reserve has been criticized for monetary policy which worsened the depression.[67] Partly to alleviate problems related to the depression, the United States transitioned from a gold standard and now uses a fiat currency; elasticity is believed to have been increased greatly.[68]

text: High employment – Unemployment has experienced significant increases on occasion, despite the efforts of the Federal Reserve.[69] These periods include the early 1990s recession caused by the savings and loan crisis, the bursting of the dot-com bubble and the 2006 bursting of the housing bubble plus the 2007 subprime mortgage financial crisis. In some cases, the Federal Reserve intentionally sacrificed employment levels in order to rein in spiralling inflation, as was the case for the Early 1980s recession, which was induced to alleviate a stagflation problem.

text: Stable prices – While some economists would regard any consistent inflation as a sign of unstable prices,[71] policymakers could be satisfied with 1 or 2%;[72] the consensus of "price stability" constituting long-run inflation of 1–2% is, however, a relatively recent development, and a change that has occurred at other central banks throughout the world. Inflation has averaged a 4.2% increase annually following the mandates applied in 1977; historic inflation since the establishment of the Federal Reserve in 1913 has averaged 3.4%.[73] In contrast, some research indicates that average inflation for the 250 years before the system was near zero percent, though there were likely sharper upward and downward spikes in that timeframe as compared with more recent times.[74] Central banks in some other countries, notably the German Bundesbank, had considerably better records of achieving price stability drawing on experience from the two episodes of hyperinflation and economic collapse under the country's previous central bank.

text: Inflation worldwide has fallen significantly since former Federal Reserve Chairman Paul Volcker began his tenure in 1979, a period which has been called the Great Moderation; some commentators attribute this to improved monetary policy worldwide, particularly in the Organisation for Economic Co-operation and Development.[75][76] BusinessWeek notes that inflation has been relatively low since mid-1980s[77] and it was during this time that Volcker wrote (in 1995), "It is a sobering fact that the prominence of central banks [such as the Federal Reserve] in this century has coincided with a general tendency towards more inflation, not less. By and large, if the overriding objective is price stability, we did better with the nineteenth-century gold standard and passive central banks, with currency boards, or even with 'free banking.'".

text: Sustainable growth – The growth of the economy may not be sustainable as the ability for households to save money has been on an overall decline[78] and household debt is consistently rising.[79]

text: Causes of The Great Depression[edit]

text: Monetarists who believe that the Great Depression started as an ordinary recession but significant policy mistakes by monetary authorities (especially the Federal Reserve) caused a shrinking of the money supply which greatly exacerbated the economic situation, causing a recession to descend into the Great Depression.

text: Public confusion[edit]

text: The Federal Reserve has established a library of information on their websites, however, many experts have spoken about the general level of public confusion that still exists on the subject of the economy; this lack of understanding of macroeconomic questions and monetary policy, however, exists in other countries as well. Critics of the Fed widely regard the system as being "opaque", and one of the Fed's most vehement opponents of his time, Congressman Louis T. McFadden, even went so far as to say that "Every effort has been made by the Federal Reserve Board to conceal its powers...."[80]

text: There are, on the other hand, many economists who support the need for an independent central banking authority, and some have established websites that aim to clear up confusion about the economy and the Federal Reserve's operations. The Federal Reserve website itself publishes various information and instructional materials for a variety of audiences.

text: Criticism of government interference[edit]

text: Some economists, especially those belonging to the heterodox Austrian School, criticize the idea of even establishing monetary policy, believing that it distorts investment. Friedrich Hayek won the Nobel Prize for his elaboration of the Austrian business cycle theory.

text: Briefly, the theory holds that an artificial injection of credit, from a source such as a central bank like the Federal Reserve, sends false signals to entrepreneurs to engage in long-term investments due to a favorably low interest rate. However, the surge of investments undertaken represents an artificial boom, or bubble, because the low interest rate was achieved by an artificial expansion of the money supply and not by savings. Hence, the pool of real savings and resources have not increased and do not justify the investments undertaken.

text: These investments, which are more appropriately called "malinvestments", are realized to be unsustainable when the artificial credit spigot is shut off and interest rates rise. The malinvestments and unsustainable projects are liquidated, which is the recession. The theory demonstrates that the problem is the artificial boom which causes the malinvestments in the first place, made possible by an artificial injection of credit not from savings.

text: According to Austrian economics, without government intervention, interest rates will always be an equilibrium between the time-preferences of borrowers and savers, and this equilibrium is simply distorted by government intervention. This distortion, in their view, is the cause of the business cycle. Some Austrian economists—but by no means all—also support full reserve banking, a hypothetical financial/banking system where banks may not lend deposits. Others may advocate free banking, whereby the government abstains from any interference in what individuals may choose to use as money or the extent to which banks create money through the deposit and lending cycle.

text: Reserve requirement[edit]

text: The Federal Reserve regulates banking, and one regulation under its direct control is the reserve requirement which dictates how much money banks must keep in reserves, as compared to its demand deposits. Banks use their observation that the majority of deposits are not requested by the account holders at the same time.

text: Currently, the Federal Reserve requires that banks keep 10% of their deposits on hand.[81] Some countries have no nationally mandated reserve requirements—banks use their own resources to determine what to hold in reserve, however their lending is typically constrained by other regulations.[82] Other factors being equal, lower reserve percentages increases the possibility of Bank runs, such as the widespread runs of 1931. Low reserve requirements also allow for larger expansions of the money supply by actions of commercial banks—currently the private banking system has created much of the broad money supply of US dollars through lending activity. Monetary policy reform calling for 100% reserves has been advocated by economists such as: Irving Fisher,[83] Frank Knight,[84] many ecological economists along with economists of the Chicago School and Austrian School. Despite calls for reform, the nearly universal practice of fractional-reserve banking has remained in the United States.

text: Criticism of private sector involvement[edit]

text: Historically and to the present day, various social and political movements (such as social credit) have criticized the involvement of the private sector in "creating money", claiming that only the government should have the power to "make money". Some proponents also support full reserve banking or other non-orthodox approaches to monetary policy. Various terminology may be used, including "debt money", which may have emotive or political connotations. These are generally considered to be akin to conspiracy theories by mainstream economists and ignored in academic literature on monetary policy.


document_title: History of Sikkim

question_text: how sikkim became a part of indian union

text: History of Sikkim

text: Ancient history[edit]

text: When the Kirat King Yalambar captured central Nepal in 1,500 B.C his kingdom extended from river Trisuli in the west to river Teesta in the east.[1][2] According to Hindu mythology, Lord Shiva is said to have appeared in the form of hunter Kirateshwar or Lord of the Kiratas to Arjuna in the very spot where the ancient Kirateshwar temple lies in Legship, West Sikkim.[3][4] By the 6th century the Lepchas occupied the Lapchan area of Nepal (present Ilam region), present Sikkim, Har Chu Valley and Ammo Chu Valley (present South Western Bhutan) and most of Eastern part of Greater Sikkim up to the Chumbi Valley. Meanwhile, the Limbus inhabited the Western part of Greater Sikkim (present Limbuwan region).[5] A part of Limbuwan is still retained in present Sikkim in the West district, South district and a part of North district.[6] The Lepchas spoke the Lepcha dialect and were believers of Boongthism and Munism or Animism by faith. The Limbus spoke the Limbu dialect and were believers of Yumaism or Yuma Sammang, a form of Kirat Mundhum.[5]

text: In the 7th century, Thekung Adek consolidated the Lepcha tribes and declared himself a Panu, a Tribal Religious and Administrative chief or king. Similarly, the Limbu tribes were ruled by 10 elected chiefs or Hangs from each of their clans to form a social and administrative body called Thibong Yakthum Tumyanghang (tribal republic council or Ten Limbus Council).[7] Around 870 A.D. Na Hang, the chief of Daramdin, West Sikkim was incited by the Chilikchom people to fight against the Kirati Limbu king of Limbuwan, Mabo Hang. Na Hang was defeated and the Chilikchom were banished from Limbuwan.[8] Sikkim also finds mention in many Hindu texts because the Buddhist saint Guru Rinpoche or Padmasambhava is said to have passed through the land in the 9th century. According to legend, the Guru blessed the land, introduced Buddhism to Sikkim and also foretold the era of the monarchy in the state, which would arrive centuries later. There are numerous stories regarding the migration of Tibetans into Sikkim and the establishment of the Sikkimese monarchy. The most popular states that in the 13th century, Guru Tashi, a prince from the Minyak House in Kham in Eastern Tibet, had a divine revelation one night instructing him to travel south to seek his fortunes. Guru Tashi settled down in the Chumbi Valley.[9][10] The population and linguistic survey were not held during this period but it's certain that the region was inhabited by the Lepchas, the Limbus, the Magars and some Bhutias in the later periods.[11]

text: Kingdom of Sikkim[edit]

text: By 1641 the Lepchas, the Limbus and the Magars were ruling in different villages independently.[12] The Limbu and the Magar tribes lived in the remote Western and Southern regions.[13] In the early 17th century the Bhutias were forced to take refuge in Sikkim due to the conflict between followers of the Yellow hat and the Red hats in Tibet. The Bhutias tried to convert the Sikkimese worshippers of nature to Buddhism and succeeded to an extent.[14] The Tibetan Lamas sought to establish Sikkim as a Buddhist Kingdom thereby electing a Lhopa King of Tibetan origin.[12]

text: In 1642, the fifth generation descendant of Guru Tashi, Phuntsog Namgyal was consecrated as the first Denjong Gyalpo or the Chogyal (king) of Sikkim by Lhatsun Chhenpo, Nga-dag Lama and Kathhog Lama, three great Lamas who came from the north, west and south to Yuksom Norbugang in West Sikkim.[15] The event, Naljor Chezhi, was as predicted by Guru Rinpoche some eight hundred years before. The Dalai Lama sent the new Chogyal a silk scarf, the mitre of Guru Rinpoche and a sand image of him as a coronation present.[15] However the Limbu and the Magar chiefs refused to accept the rule of the Chogyal who had to bring in Tibetan soldiers to subdue them.[12][16]

text: This historical gathering of the three virtuous lamas is called Yuksom, which in Lepcha means 'The Place where the Three monks met' as in Lepcha a lama is called a "Yukmun" and the word for three is "Som". The Chogyal, along with the three lamas proselytised the Lepcha tribes into Buddhism and annexed the Chumbi Valley, the present-day Darjeeling district and parts of today's eastern Nepal.

text: Shortly after his coronation the new Chogyal appointed 12 kalons or ministers from the Bhutia community and split his kingdom into 12 Dzongs or administrative units, which each contained a fort. Individual Dzongs were headed by a Dzonga drawn from amongst the Lepchas. The lands of Sikkim were leased as gifts to kazis and thikadars who in turn leased sub-plots to peasants at high rents. Mandals (headmen) and karbaris (assistants to the mandals) were employed by the kazis and thikadars as rent collectors and dispute mediators. Out of Sikkims 104 revenue estates, 61 were leased to kazis and thikadars for fixed sums, five were given to monasteries and fifteen retained by the Chogyal for his private use.[17][18] The Limbu chiefs or the Subbas were also given full autonomy of their districts under the King.[12]

text: Thus Phuntsog Namgyal became the first King of the Kingdom of Sikkim and all the Kirat chiefs agreed to regard him as the supreme ruler. However the Magars did not get along with the Bhutias and left Sikkim after they were defeated in a battle. The King called all the Kirat chiefs and proclaimed that Bhutias or Lhopsas, Tsongs or the Limbus and the Mempas or the Lepchas were all part of one family known as the Lho-Mehn-Tsong with the King as the father, the Lepchas as the mother and the Limbus as the sons and they were forbidden to fight amongst themselves.[12] The signing of this tripartite treaty of Lho-Mehn-Tsong Tsum was overseen by eight Bhutia tribal leaders, twelve Limbu tribal leaders and four Lepcha tribal leaders in present West Sikkim.[11]

text: Invasions from Bhutan and Nepal[edit]

text: Phuntsog Namgyal was succeeded by his son, Tensung Namgyal in 1670. The reign of this Chogyal was peaceful and saw the capital move from Yuksom to Rabdentse. Chakdor Namgyal, the king's second wife's son, took over the throne from him in 1700. This outraged his elder half-sister Pendiongmu, who ousted him with the help of the Bhutanese. From 1700 to 1706, when Chakdor Namgyal, the third Chogyal of the Kingdom of Sikkim, most parts of it were invaded by Deb Naku Zidar, the king of Bhutan. Chakdor Namgyal went into exile in Tibet. The Tibetan people subsequently expelled the Bhutanese army, and called Chakdor Namgyal back to Sikkim.[19] Chakdor's son Gyurmed Namgyal succeeded him in 1717. Gyurmed's reign saw many skirmishes between the Nepalese and Sikkimese. Phuntsog Namgyal II, the illegitimate child of Gyurmed, succeeded his father in 1733. His reign was tumultuous in the face of attacks by the Bhutanese and the Nepalese who managed to capture the capital Rabdentse.

text: Tenzing Namgyal, Chogyal from 1780 to 1793, was a weak ruler, and his sovereignty saw most of Sikkim being appropriated by Nepal. In 1788, the Nepali Gorkha Army invaded Sikkim, and took Limbuana and the former capital Rabdentse by storm. The king of Sikkim went into exile in Tibet for a second time. In 1788, the 8th Dalai Lama stationed him in Chumbi Valley in Rènà zong (also "Rèrì," today's Yadong County).[19][20] His son Tshudpud Namgyal, returned to Sikkim in 1793 to reclaim the throne with the help of China. Finding Rabdentse too close to the Nepalese border, he shifted the capital to Tumlong.

text: Relations with the British Empire[edit]

text: With the arrival of the British in neighbouring India, Sikkim allied itself with them as they had a common enemy – the Gorkha Kingdom of Nepal. The infuriated Nepalese attacked Sikkim with vengeance, over-running most of the region including the Terai. This prompted the British East India Company to attack Nepal resulting in the Anglo-Nepalese War, which began in 1814. Treaties signed between British and Nepal – the Sugauli Treaty and Sikkim and British India – Treaty of Titalia, returned the territory annexed by the Nepalese to Sikkim in 1817.

text: Meanwhile, the British were looking for a route to establish trading links with Tibet. An offshoot of the ancient Silk Road through Sikkim meant that the kingdom was ideal as a transit route. A secondary reason for the establishment of links was to quell the growing Russian influence in Tibet in the context of The Great Game. However ties between Sikkim and India grew sour with the taxation of the area of Morang by the British. An internal disturbance, which began in 1825, gave the British the opportunity to secure the 1835 cession of Darjeeling to British Sikkim in view of its perceived advantages as a sanitorium. Unhappy with this development, Sikkim's Dewan often frustrated the cessation by denying aid to the British in capturing escaped criminals and offering amnesty for escaped slaves. As compensation for the loss, the British Government paid the Sikkim Raja Rs. 3,000 from 1841 onwards, a sum that was later increased to Rs. 12,000.[21]

text: In 1849, British doctor Archibald Campbell, then superintendent of Darjeeling, and botanist Joseph Hooker, ventured into the mountains of Sikkim with the permission of the British and the Chogyal of Sikkim but strayed across the Cho La into Tibet. They were detained by the Sikkim government at the instigation of the pro-Tibetan "mad Dewan" T. Namguey, which led to a punitive British expedition against the Himalayan kingdom.[22][21] Although subsequent bloodshed was avoided, the British annexed the whole of Darjeeling district and the Terai in 1861. In the same year, signature of the Treaty of Tumlong effectively made Sikkim a de facto protectorate of the British.[23]

text: Alongside "British Sikkim", "Independent Sikkim" continued to exist as a rump state centred around the capital at Gangtok ruling over 2,500 square miles (6,500 km2) of territory.[24] The former Chogyal was forced to abdicate in favour of his son, Sidkeong Namgyal in 1863.

text: The Chogyals endeavored to modernize Sikkim in the succeeding decades, along with their army. A state visit to Darjeeling by Sidekong's half brother, Chogyal Thutob Namgyal in 1873 failed to yield such results, and he returned to Tumlong disappointed. In 1886, the British, interested in trade with Tibet, launched a brief expedition into Sikkim. The Tibetans occupied several of Sikkim's northern border forts, and the Chogyal and his wife were held prisoner by the British when they came to negotiate at Calcutta. In 1888, the Tibetans were defeated and northern Sikkim came under the rule of British India. The British established new landholdings in Sikkim, but released the Chogyal only to have him captured again in 1891. In 1894, the capital was shifted to Gangtok.

text: In 1895, the Chogyal was released, but the British governors in India reneged on an agreement – the Ten Clauses Agreement – which returned sovereignty to Sikkim. The Political Officer in Sikkim, John Claude White, refused to return any sovereignty, and only let the Chogyal retain the judiciary of Sikkim.

text: In 1905, the Prince of Wales – the future King George V – arrived in Calcutta on a state visit during which he met the Chogyal. The two made an excellent acquaintance and the Crown Prince of Sikkim, Sidkeong Tulku was sent to study at Oxford University. When Sidkeong came to power, he arranged widened sovereignty for Sikkim from King George's government and endorsed sweeping reforms in his short rule as Chogyal, which ended in 1914. In 1918, Sikkim's independence in all domestic affairs was restored, and in the next decade the kingdom embarked on a policy to end social ills, outlawing gambling, child labour, and indentured service.

text: Independent monarchy[edit]

text: Sikkim had retained guarantees of independence from Britain when it became independent, and such guarantees were transferred to the Indian government when it gained independence in 1947. A popular vote for Sikkim to join the Indian Union failed and Indian Prime Minister Jawaharlal Nehru agreed to a special protectorate status for Sikkim. Sikkim was to be a tributary of India, in which India controlled its external defence, diplomacy and communication. A state council was established in 1953 to allow for constitutional government for the Chogyal, which was sustained until 1973.

text: In 1962, India and the People's Republic of China went to war. Although Sikkim was an independent country, skirmishes occurred at the Nathula Pass between Indian border guards and the Chinese soldiers. After the war, the ancient pass was shut down (it reopened 6 July 2006).

text: The old ruler Tashi Namgyal died in 1963 after suffering from cancer. The last hereditary ruler, the Chogyal Palden Thondup Namgyal, ascended to the throne in 1965. Trouble began to brew for the crown even before the Chogyal assumed the throne, as Indian Prime Minister Nehru, who had carefully preserved Sikkim's status as an independent protectorate, died in 1964. His daughter Indira Gandhi, who became Prime Minister in 1966, would have little patience for maintaining an independent Sikkim or its monarchy. The chogyal, who responded to the increased pressure by drinking, was viewed by India as politically dangerous, especially after his wife, the American socialite Hope Cooke, published a journal article advocating a return of certain former Sikkimese properties.

text: In early 1970 the anti-monarchy Sikkim National Congress Party demanded fresh elections and greater representation for the Nepalese.

text: In 1973, anti-royalty riots in front of the palace led to a formal request for protection from India. India worried that an unstable Sikkim would invite China to act on its claims that Sikkim was part of Tibet, and therefore part of China. The Indian government appointed a Chief administrator, Mr. B. S. Das, who effectively wrested control of the country away from the Chogyal.

text: Frosty relations between the Chogyal and the elected Kazi (Prime Minister) Lhendup Dorji resulted in an attempt to block the meeting of the legislature. The Kazi was elected by the Council of Ministers which was unanimous in its opposition to the retention of the Monarchy.

text: Prime Minister Dorji appealed to the Indian Parliament for representation and change of status to statehood. On 14 April 1975, a referendum was held, in which Sikkim voted to merge with the union of India. Sikkim became the 22nd Indian State on 26 April 1975. On 16 May 1975, Sikkim officially became a state of the Indian Union and Lhendup Dorji became head of State (chief minister).

text: The position of Chogyal was thus abolished, ending the monarchy. In 1982, Palden Thondup died of cancer in the United States.

text: State of India[edit]

text: The 1979 assembly election saw Nar Bahadur Bhandari elected Chief Minister of Sikkim. Bhandhari held on to win again in 1984 and 1989. In 1994, Assembly politician Pawan Kumar Chamling became the Chief Minister of Sikkim. In 1999, 2004, 2009 and 2014 Chamling consolidated his position to sweep the polls.

text: Sino-Indian relations were somewhat bruised in 2000 by an event in Sikkim which challenged China's longstanding claim of Sikkim as an independent country. The unusual event was the escape of Ogyen Trinley Dorje from Tibet to Dharamsala, India. Ogyen Trinley Dorje is one of the two rival claimants who seeks recognition as the 17th Karmapa, the head of the Black Hat branch of Tibetan Buddhism (see Karmapa controversy). The two claimants did battle in the Indian court system for control of the considerable funds collected by the 16th Karmapa for the restoration and maintenance of Rumtek Monastery, located in Gangtok, Sikkim. The Chinese, who recognise Ogyen Trinley Dorje as the true Karmapa, were unhappy about the court outcome which awarded the monastery funds to the other rival. However, the Chinese government was in a quandary as to what to do about it, as any protest to India would mean an explicit endorsement that the high court of India holds jurisdiction over Sikkim.

text: In 2003, with the thawing of relations between the two nations, Indian sovereignty over Sikkim was finally recognised by China. The two governments also proposed to open the Nathula and Jelepla Passes in 2005.

text: On 18 September 2011, a magnitude 6.9Mw earthquake struck Sikkim, killing at least 116 people in the state and in Nepal, Bhutan, Bangladesh and Tibet.[25] More than 60 people died in Sikkim alone, and the city of Gangtok suffered significant damage.[26]