U S Monetary History and the Roots of Populism Monetary Policy Process by which a government or bank employs measures to influence economic activity Government manipulates the supply and availability This is done by o Manipulation of interest rates o Determining the type and amount of money that is in The Coinage Act of 1792 the economy Bimetallism Established the US mint and monetary system based on Gold and Silver Established Dollar as the unit of money Allowed free coinage Results Effectively put us on a bimetallic Standard When a official monetary standard of a nation is based on 2 metals Act of 1792 Pegged the exchange rate of 15 units of pure silver to 1 of pure gold Gold Rush Large deposits in 1859 Silver decreased in value as gold increased The Coinage Act of 1873 Removed Silver as an official type of money Led to deflation decrease in the supply of money in the economy Officially ended bimetallism The Resumption of On Demand Begin redeeming greenbacks with gold Decreased amount of greenbacks in circulation causing deflation Free silver Movement Remonetize silver Silver miners and owners Ghost towns Farmers favored inflation Debtors o Delved on Bank Loans o American Debtors Prison Crime of 1873 Populist Movement Of many organizations and people seeking similar reforms Primarily an agrarian movement during the 1870 s 1890 s South Midwest West Reason for rise of Movement Deflation which resulted in a decline in farmers incomes Conflict with Railroads banks and big business Industrialization Urbanization Immigration The nation was rapidly changing Transformation form rural to urban Democratic Political Reforms The direct election of senators Referendum vote by general public to decide whether legislation becomes a law The initiative where voters gather signatures on a petition so that proposed legislation can be presented to the state legislature Wants inflation want greenbacks The Greenback Party Farmers Allied with KOL Benjamin Butler Grangers Granger corporations Bring north and south farmers together State laws which regulated businesses Many targeted railroads regulated freight rates lowered set rates and made sure that all rail customers were treated fairly and equally Challenged by railroads Wabash v Illinois 1886 o Ruled interstate commerce only congress had right to vote Commerce Clause Increasing power of Federal government during the late 19th and 20th centuries Interstate commerce commission ICC
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