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Two forces drove this pro-silver or "free silver" movement:  Westerners had discovered silver mines, so they wanted the silver to become more valuable, and farmers wanted to cause inflation to increase the prices for their goods and lower the real cost of their debts to the banks.   

Two forces drove this pro-silver or "free silver" movement:  Westerners had discovered silver mines, so they wanted the silver to become more valuable, and farmers wanted to cause inflation to increase the prices for their goods and lower the real cost of their debts to the banks.   

Westerns and Southerners arranged for passage of the Bland-Allison Act in 1878, which required the government to purchase $2-4 million worth of silver each month.  In addition, a bill passed (over President Rutherford Hayes' veto) allowing for the free and unlimited coinage by the government of silver, such as silver dollars, at a value of 16-to-1 relative to gold (16 ounces of silver was worth 1 ounce of gold).  The government began minting silver dollars that are collectors' items today (and worth much more than one dollar now).

Westerns and Southerners arranged for passage of the Bland-Allison Act in 1878, which required the government to purchase $2-4 million worth of silver each month.  In addition, a bill passed (over President Rutherford Hayes' veto) allowing for the free and unlimited coinage by the government of silver, such as silver dollars, at a value of 16-to-1 relative to gold (16 ounces of silver were worth 1 ounce of gold).  The government began minting silver dollars that are collectors' items today (and worth much more than one dollar now).

But the price of silver fell as more was mined, because more of something usually means it is less valuable.  The monthly government purchases declined also.  Deflation continued for the next ten years.  $100 in 1878 was equivalent to only $84.43 in 1890.  Imagine that!  Deflation is devastating to farmers, as their income from milk and beef and other farm products decreases, while their debts grow higher in real value.

But the price of silver fell as more was mined, because more of something usually means it is less valuable.  The monthly government purchases declined also.  Deflation continued for the next ten years.  $100 in 1878 was equivalent to only $84.43 in 1890.  Imagine that!  Deflation is devastating to farmers, as their income from milk and beef and other farm products decreases, while their debts grow higher in real value.