U.S. Monetary History and the Roots of PopulismMonetary Policy- Process by which a government or bank employs measures to influence economic activity. Government manipulates thesupply and availability. This is done by:o Manipulation of interest rateso Determining the type and amount of money that is in the economyThe Coinage Act of 1792- 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 StandardBimetallism- 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 goldGold Rush- Large deposits in 1859- Silver decreased in value as gold increasedThe 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 bimetallismThe Resumption of “On Demand”- Begin redeeming greenbacks with gold- Decreased amount of greenbacks in circulation causing deflationFree silver Movement- Remonetize silver- Silver miners and owners- Ghost towns- Farmers-favored inflation- Debtorso Delved on Bank Loanso American Debtors Prison- Crime of 1873Populist Movement- Of many organizations and people seeking similar reforms - Primarily an agrarian movement during the 1870’s-1890’s- South, Midwest, WestReason 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 urbanDemocratic/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 legislatureThe Greenback Party- -Wants inflation, want greenbacks- Farmers- Allied with KOL- Benjamin ButlerGrangers- Bring north and south farmers togetherGranger corporations- State laws which regulated businesses- Many targeted railroads, regulated freight rates, lowered setrates and made sure that all rail customers were treated fairly and equally- Challenged by railroads- Wabash v Illinois 1886o Ruled interstate commerce, only congress had right tovoteCommerce Clause- Increasing power of Federal government during the late 19th and 20th centuries- Interstate commerce commission
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