From about 1878 to the end of the century there was strong pressure to return the nation’s economic standard to bimetallism by including silver along with gold. 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 more money in currency to cause inflation. 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. Also, a bill passed over President Hayes’ veto which allowed for the free and unlimited coinage by the government of silver, such as silver dollars, at a ratio of 16 to 1 relative to gold. The government began minting silver dollars that are collectors’ items today (and worth much more than one dollar now). | From about 1878 to the end of the century there was strong pressure to return the nation’s economic standard to bimetallism by including silver along with gold. 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 more money in currency to cause inflation. 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. Also, a bill passed over President Hayes’ veto which allowed for the free and unlimited coinage by the government of silver, such as silver dollars, at a ratio of 16 to 1 relative to gold. The government began minting silver dollars that are collectors’ items today (and worth much more than one dollar now). |