Changes

Recall that President Jackson had issued the "Specie Circular" in 1836 in response to inflation and land speculation resultant from the increase in paper money at that time.  Jackson's Specie Circular provided that only gold and silver (and sometimes Virginia land scrip) would be accepted by the government for payment for public lands.  After the Panic of 1837, Jackson's Specie Circular was repealed in 1838.

Recall that President Jackson had issued the "Specie Circular" in 1836 in response to inflation and land speculation resultant from the increase in paper money at that time.  Jackson's Specie Circular provided that only gold and silver (and sometimes Virginia land scrip) would be accepted by the government for payment for public lands.  After the Panic of 1837, Jackson's Specie Circular was repealed in 1838.

Money then became scarcer, and inflation ended.  Farmers were outraged, calling this the “Crime of 1873”.  What cost $100 in 1872 only cost $77.82 by 1880.  Deflation is devastating to farmers.  Their prices on their goods fall but they still have to pay back their original loan.

Money then became scarcer when Grant converted to the gold ("hard money") standard, and inflation ended.  Farmers were outraged, calling this the "Crime of 1873." What cost $100 in 1872 cost only $77.82 by 1880. Deflation occurred! Deflation is devastating to farmers.  Their prices on their goods fall but they still have to pay back their original loan.

So the farmers formed a new political party in creation to the deflation and “Crime of 1873”:  the Greenback Party.  The so-called “Greenbackers” opposed the gold standard and opposed allowing people to turn in Greenback currency for gold.  They were farmers and debtors who wanted inflation, and silver coins to cause inflation.  In 1878 and 1880 the Greenback Party won two dozen seats in Congress.  But that was not enough, and the government went ahead with redeeming greenbacks in gold.  So debtors and farmers turned to a new solution:  silver.  The Greenback Party peaked in 1878 and disappeared by 1884 as the political issues changed.

So the farmers formed a new political party in creation to the deflation and "Crime of 1873":  the Greenback Party.  The so-called "Greenbackers" opposed the gold standard and opposed allowing people to turn in Greenback currency for gold.  They were farmers and debtors who wanted inflation, and who wanted silver coins to cause inflation.  In 1878 and 1880 the Greenback Party won two dozen seats in Congress.  But that was not enough to change the country, and the government went ahead with redeeming greenbacks in gold.  So debtors and farmers turned to a new solution:  silver.  The Greenback Party peaked in 1878 and disappeared by 1884 as the political issues changed.

== References ==

== References ==