Response
Many populist organizations favored an inflationary monetary policy on the grounds that it would enable debtors (often farmers who had mortgages on their land) to pay their debts off with cheaper, more readily-available dollars; those who would suffer under this policy were the creditors such as banks and landlords. The most vocal and best organized supporters were the silver mine owners (such as William Randolph Hearst) and workers, and the western states and territories generally.
Outside the mining states of the west, the Republican Party steadfastly opposed free silver, arguing that the best road to national prosperity was "sound money", or gold, which was central to international trade. They argued that inflation meant guaranteed higher prices for everyone, and real gains chiefly for the silver interests. In 1896, Senator Henry M. Teller of Colorado led many western Republicans to bolt and form a third party that supported William Jennings Bryan, the short-lived Silver Republican Party.
The Sherman Silver Purchase Act of 1890, while falling short of free silver's goals, required the U.S. government to buy millions of ounces of silver (driving up the price of the metal and pleasing silver miners) for money (pleasing farmers and many others). However, the U.S. government paid for that silver bullion in gold notes—and actually reduced their coinage of silver. The result was a "run" on the Treasury's gold reserves which was one of the many reasons for the Panic of 1893 and the onset of the 1890s Depression. Once he regained power, and after the Panic of 1893 had begun, Grover Cleveland engineered the repeal of the Act, setting the stage for the key issue of the next presidential election.
Read more about this topic: Free Silver
Famous quotes containing the word response:
“It does me good to write a letter which is not a response to a demand, a gratuitous letter, so to speak, which has accumulated in me like the waters of a reservoir.”
—Henry Miller (18911980)
“Because humans are not alone in exhibiting such behaviorbees stockpile royal jelly, birds feather their nests, mice shred paperits possible that a pregnant woman who scrubs her house from floor to ceiling [just before her baby is born] is responding to a biological imperative . . . . Of course there are those who believe that . . . the burst of energy that propels a pregnant woman to clean her house is a perfectly natural response to their mothers impending visit.”
—Mary Arrigo (20th century)
“Ill never forget my fathers response when I told him I wanted to be a lawyer. He said, If you do this, no man will ever want you.”
—Cassandra Dunn (b. c. 1931)