In the mid 1800s a lot of things were starting to take place. There had been failing crop prices. Many farmers were in debt, and farmers complained about tariffs. Greenbackers, Goldbugs, and silverites were taking action.
Deflation was not always a bad thing to everyone, because everything was cheap, but it did hurt many people .Deflation had effected many farmers and debtors. On the other hand, it benefited the bankers and lenders.Farmers would take out mortgages when agricultural prices were high, but then had to pay the money back when crop prices were low.
In 1792 Alexander Hamilton had set the United States on a bimetallic standard. This was a continuous switch from gold standard to silver standard. There was a decision to remove the American dollar from bimetallism in 1873. As a result of the bad decision , the US faced consequences. The dollar was linked to a metal that was getting scarcer and scarcer. Then the demand for gold had rose tremendously. 1873 was an end of the bimetallic standard.
Silverites were mainly miners and westerners. They had wanted to lower the gold standard of the United States to silver, which would have allowed more money to be printed and made available to the public, and cause inflation. They wanted to free silver to put more money in the money supply. The silverites famous slogan was 16: 1. It meant the ratio of sixteen ounces of silver equal in value to one ounce of gold.
The greenbackers had argued for paper money to cause inflation. Many people opposed to that idea, and simply called paper money immoral. The Greenback party had only one 80000 votes in its first year.Greenbackers had tried, but were unsuccessful.
Simply me.
- Jazmyn.
- Jazmyn is the name. CHS is where i attend. juniOr; class Of 10' End of story.
12 comments:
Good blog. I liked how you talked about all the problems that the westerns had, with much detail. I liked how you talked about the depth of deflation. Good job. :]
Hey Jazzy boo! Your blog was very useful. I like how u talked about the different problems the westerners had. It was very creative. I also liked how you talked about deflation. I never knew so much about alexander hamilton until you actually wrote about him. You gave a lot of information and detail on him. Well done girl!
Nice blog! You picked a good subject to talk about: the standard of money. I really liked the part when you added some worthwhile information such as bimetallic standard established by Hamilton in the late 1700s for the US economy. No one else ever talked about deflation...finally you mentioned it. Great job elaborating on different impacts the deflation had on businesses and families. Keep it up! I look forward to reading the next one.
I don’t know why people would oppose paper money over gold that was very scarce. Paper would be more efficient and easier to make. I mean they wouldn’t even take the silver that was a 16:1 ratio. I never knew anything about the exchanges and the changes of money in the 1800’s. Great essay.
This is an amazing blog! I like how you shortly summed up what happened during the time between the removal of the bimetallic standard all the way to the argument of people wanting a greenback standard. It’s quite petty that it took almost a century for the government to get smart and switch to a greenback standard. If they agreed earlier, inflation would have helped many; even with some risks.
hi!! Well i really liked your blog. Deflation Wasn't bad for every one but it hurt a lot of people. i like how you put veiws on people who valued the gold, silver, and greenback system.
hey your blog was good! and i agree delfaltion had hurt alot of people. i liked how you but different opinions of people who valued paperback, gold, and silver
This was a very good blog. I learned that Silverites were mainly farmers and miners. The Silverites tried to lower the standard for gold, and bring the standard of silver so farmers and miners could prosper. This action reminds me of how lobbyists, do the same type of actions to benefit themselves. This is just an observation of how the farmers and miners acted like lobbyists.
Hey good blog. I liked that you separated who supported each system. I didn't really know the nicknames that well before i read your blogs you used them a lot so i learned what they meant.
Wow.. I didn't know that the ratio of 16 ounces of silver were to 1 ounce of gold. Now I see why the demand for gold was really high. I think that was a great idea by the greenbackers to introduce paper money.
The debate over how American currency should be represented seemed to go on for a long time. I liked how you included information about each type. The U.S. government preferred the gold standard over the bimetallic standard because many other countries worldwide were already on the gold standard. It's a shame the Greenbackers couldn't get their way during the populism era and get out of debt faster.
Your blog had a lot of detail and i enjoyed reading it. I liked how you talked about the westerners different problems. You talked about things that i didnt even know about, deflation. It was good information to know. Good jobbb
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