To borrow money at low interest rates to pay off

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To borrow money at low interest rates - To pay off their loans with inflated dollars Bankers, creditors, investors, and established businesses wanted… - Sound/ Hard money - Gold stored in government vaults Greenback Party… Northern farmers benefited from the use of greenbacks, while creditors and investors thought it was a violation of natural law. The specie resumption act withdrew the circulation of greenbacks. This caused paper money supporters to create the Greenback party which died out after the 1870 hard times. Demands for Silver Money… Silver money was revived when there was a discovery of silver in Nevada. The use of silver money was to expand the money supply. The Bland Allison act was passed that only allowed a limited amount of silver coinage. Farmers, debtors, and western miners still wanted unlimited coinage of silver. Tariff issue Republican congress raised tariffs to protect U.S. industry. Democrats objected the
high tariff because they raised the price of consumer goods. Going Deeper… The Gold Standard Highlight cues as you read and review! During the nineteenth century, U.S. currency was backed by both gold and silver—in other words, a dollar in silver, nickel, or copper coins or in paper money was guaranteed by the government to be convertible into a dollar's worth of either metal. As a result of this "bimetallic standard," the valuation of U.S. currency fluctuated wildly. Because the value of the two metals on the open market was constantly changing, speculators were able to turn a profit by selling their coins for more than their face value when the value.. Bimetalism is… allowing silver in exchange for gold Gold Standard is … Making gold reserves the basis of the monetary system Textbook or Internet Search Break Review the economic policies below by explaining each one’s purpose and impact on the American economy. Legal Tender Act 1862 National Banking Act 1863 Coinage Act 1873 Specie Payment Resumption Act 1874 Bland Allison Act 1878 Gold Standard Act 1900 Purpose: On this day in 1862, Congress passed the Legal Tender Act to finance the Civil War. It allowed the federal government for the first time to print paper money, called greenbacks, that was not backed by an equal amount of gold or silver. Impact on economy: Increased the money supply Purpose: Designed to create a national banking system, float federal war loans, and establish a national currency. Impact on economy: Resolved the financial crisis that emerged during the early days of the American Civil War (1861– 1865). Purpose: Regulation passed by Congress on April 2,1792 that established the U.S. Mint. The law also established the U.S. coinage system and placed the mint at the seat of the U.S. government. Impact on economy: Because of this, the act became contentious in later years, and was denounced by people who wanted inflation as the "Crime of '73". Purpose: The Specie Payment Resumption Act of January 14, 1875 was a law in the United States that restored the nation to the gold standard through the redemption of previously-unbacked United States Notes and reversed inflationary government

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