What was the free silver plan?
Asked by: Aliya Towne | Last update: November 27, 2025Score: 4.7/5 (60 votes)
What did the free silver policy do?
The Free Silver Movement was a political movement that proposed returning to “bimetallism”: Those in the movement wanted money backed by silver to be added to the money supply, which was backed by gold. Adding to the money supply would have ended the deflation and created the possibility of inflation.
Was free silver a good idea?
Free silver at "16 to 1" would have expanded the money supply, but as a lone measure it would hardly have solved the nation's economic woes, and it would have (as Republicans argued) substantially raised the value of silver in relation to gold.
Why did Democrats support free silver?
They viewed the western demand for the free coinage of silver and inflationary money as a threat to the nation's integrity. The National Democrats blamed--not without justification--the intermittent recessions and depressions of the Gilded Age on the agitation for silver subsidies and cheapened money.
Who does free silver benefit and why?
Supporters of free silver included owners of silver mines in the West, farmers who believed that an expanded currency would increase the price of their crops, and debtors who hoped it would enable them to pay their debts more easily.
Free Silver
Why was silver demonetized?
As the California gold rush increased the supply of domestic gold and exports in silver grew, gold became the more favorable domestic currency in this bimetallic standard. During this shift to gold, the value of silver continued to depreciate until the official demonetization of silver with the Coinage Act of 1873.
Why did farmers not like the gold standard?
Farmers needed low-interest credit to keep going, and because of the gold standard, they could not get it. Nor could they raise prices. Thousands of farmers lost their land. Their solution was silver, which was much more abundant than gold.
Who didn't support the free silver movement?
It had little support among farmers in the Northeast and the Corn Belt (the eastern Midwest). Free silver was the central issue for Democrats in the presidential elections of 1896 and 1900, under the leadership of William Jennings Bryan, famed for his Cross of Gold speech in favor of free silver.
Why did the crime of 73 anger farmers?
Congress had discontinued the minting of silver coins in 1873 in an act that came to be known as the “Crime of '73.” Professor of government Elizabeth Sanders includes the demonetization of silver as one of a few significant policies of the period that led many working people, especially farmers, to believe that a “ ...
Why would the poor be in favor of free silver?
Proponents, many of whom were Western farmers and miners, believed free silver would expand the money supply for the poor.
Did Republicans oppose free silver?
The main Republican Party opposed free silver and supported the gold standard. Silver Republican strength was concentrated in the Western states where silver mining was an important industry. A leading spokesman in the House of Representatives was Willis Sweet of Idaho.
What is your currency backed by today?
The Dollar is Backed by US Government's Ability to Generate Revenues. There are two ways for the government to generate revenue: Taxes: Market participants (workers, entrepreneurs, investors) create wealth when they produce and exchange goods and services. The government extracts a portion of this wealth via taxes.
Which presidential candidate declared you shall not crucify mankind on a cross of gold?
The Cross of Gold speech was delivered by William Jennings Bryan, a former United States Representative from Nebraska, at the Democratic National Convention in Chicago on July 9, 1896.
Why did the farmers back the silver benefit?
Farmers needed more money in circulation, whether it was paper or silver, in order to create inflationary pressure. Inflationary pressure would allow farm prices to increase, thus allowing them to earn more money that they could then spend on the higher-priced goods in stores.
What did the gold bugs want?
Gold Bugs support the gold standard and wanted less money in circulation. The Gold Bugs were business men and bankers of the Northeast. Sliverites were farmers and laborers that supported bimetallism. The sliverites wanted more money in circulation.
Why was the silver standard bad?
From 1871, the value of silver depreciated relative to gold, due to the drop in demand for silver in the mints of Europe and North America, as those countries changed over to the gold standard.
Who did farmers blame the most for their problems?
Farmers, however, came to believe that their chief problem was not the market dynamics of supply and demand but that they sold goods in a free market and purchased goods in a protected and monopolistic market. They primarily zeroed in on two villains – banks and railroads.
What was the great Crime of 1873?
The Crime of 1873 refers to dropping silver dollars from official coinage by act of Congress in that year, setting the stage for the adoption of the gold standard in the U.S.
What caused the crash of 1873?
The panic started with a problem in Europe, when the stock market crashed. Investors began to sell off the investments they had in American projects, particularly railroads. Back in those days, railroads were a new invention, and companies had been borrowing money to get the cash they needed to build new lines.
What does you shall not crucify mankind upon a cross of gold mean?
What did William Jennings Bryan mean when he said "you shall not crucify mankind upon a cross of gold?" Bryan was alluding to the gold standard, which he felt favored the rich and business elites while harming the working classes.
What made the election of 1896 so unique in American history?
The 1896 campaign, which took place during an economic depression known as the Panic of 1893, was a political realignment that ended the old Third Party System and began the Fourth Party System. Presidential election results map.
Why did farmers hate railroads?
The Complaints of Farmers
First, farmers claimed that farm prices were falling and, as a consequence, so were their incomes. They generally blamed low prices on over-production. Second, farmers alleged that monopolistic railroads and grain elevators charged unfair prices for their services.
Who does free silver benefit?
Advocates for free silver argued that it would increase the money supply, leading to inflation which would benefit indebted farmers by making it easier to repay loans.
What ended the Gilded Age?
As daunting as the political challenges were at the time, the Gilded Age came to an end with the reforms of the Progressive era and the New Deal. Those years saw countless changes in the rules of economic life as well as new taxes and social spending that gave the great majority of Americans a better life.