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On April 2, 1513, Ponce de Leon landed north of present-day St. Augustine. According to legend he soon discovered water bubbling from the ground and began his famous quest for the fountain of youth. Ponce de Leon then sailed southward along the east coast of the peninsula. While heading in that direction he noticed that his ships made little headway, "despite strong northeasterly winds." Ponce de Leon had in fact discovered the powerful current in the ocean known as the Gulf Stream. It would soon determine "the homeward route of the treasure-laden Spanish galleons." Centuries later, in the 1920s, the presence of the warm stream of water flowing northward along the coast provided material for Florida promotions and advertisements. ( Burnett 1988, 169)
After rounding the southern tip of Florida, Ponce de Leon encountered a chain of islands that he named the "Dry Tortugas," because they lacked fresh
We may ask several questions with respect to the Florida boom: (1) Why did it eclipse other land booms in the United States? (2) Why did it gain special importance in Florida's history? (3) What did it have in common with other great speculative booms?
In one of the first and most widely cited articles on the Florida boom, Homer Vanderblue ( 1927a, 116, 120-121), discussing land speculation in the American West in the 1830s and in California in the 1880s, answered the first question by pointing to transportation and the enormous role of advertising in the case of Florida. However--apart from the extravagance of the promotions and the special role attributed to Henry Flagler's transportation and tourist empire in this chapter--the distinct automotive aspect of transportation for the nation at the time does not appear extremely relevant in the Florida boom case. Its influence could hardly rank with that of the nation's industrial development and the monetary and financial forces at work in the Florida boom.
With regard to both transportation and promotion, the boom was partly planned by empire builders, such as Henry Flagler and Carl Fisher, who specifically targeted tourists of considerable affluence and a winter-home clientele in their enterprises. Having already played a major role in the development of John D. Rockefeller's Standard Oil Company, Henry Flagler had originally gone to Florida from New York because of the poor health of his first wife. He soon recognized Florida's potential to attract tourists who had the time and income to enjoy the recreational pleasures it offered, and who could afford to escape the harsher climates of the not-too-distant northern cities.
n the field of economic analysis the Britisher J. M. Keynes ( 1883-1946) and the American Milton Friedman ( 1912-) treated the stock of money as the most liquid of assets. In their respective analyses this stock was held to satisfy various considerations--the transaction, precautionary, and speculative motives. As widely recounted ( Frazer 1994a, 47-52), the transaction motive relates to holding balances to tide the economic players (or the behavioral units) over from one pay period to another; the precautionary motive concerns uncertainty about the future, as where a stock of money balances (or easy access to it) becomes a way of dealing with an uncertain or unforeseen future; and speculation centers upon the prospect of making a gain (or avoiding a loss) from a rise or decline in prices, on the average, or in some particular price or set of prices, as in the case of bond prices, commodity prices, or land prices.