Strongly supported by western mining interests and farmers, the Bland-Allison Act—which provided for a return to the minting of silver coins—becomes the law of the land.
The strife and controversy surrounding the coinage of silver is difficult for most modern Americans to understand, but in the late 19th century it was a topic of keen political and economic interest. Today, the value of American money is essentially secured by faith in the stability of the government, but during the 19th century, money was generally backed by actual deposits of silver and gold, the so-called “bimetallic standard.” The U.S. also minted both gold and silver coins.
In 1873, Congress decided to follow the lead of many European nations and cease buying silver and minting silver coins, because silver was relatively scarce and to simplify the monetary system. Exacerbated by a variety of other factors, this led to a financial panic. When the government stopped buying silver, prices naturally dropped, and many owners of primarily western silver mines were hurt. Likewise, farmers and others who carried substantial debt loads attacked the so-called “Crime of ’73.” They believed, somewhat simplistically, that it caused a tighter supply of money, which in turn made it more difficult for them to pay off their debts.
A nationwide drive to return to the bimetallic standard gripped the nation, and many Americans came to place a near mystical faith in the ability of silver to solve their economic difficulties. The leader of the fight to remonetize silver was the Missouri Congressman Richard Bland. Having worked in mining and having witnessed the struggles of small farmers, Bland became a fervent believer in the silver cause, earning him the nickname “Silver Dick.”
With the backing of powerful western mining interests, Bland secured passage of the Bland-Allison Act, which became law on this day in 1878. Although the act did not provide for a return to the old policy of unlimited silver coinage, it did require the U.S. Treasury to resume purchasing silver and minting silver dollars as legal tender. Americans could once again use silver coins as legal tender, and this helped some struggling western mining operations. However, the act had little economic impact, and it failed to satisfy the more radical desires and dreams of the silver backers. The battle over the use of silver and gold continued to occupy Americans well into the 20th century.
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Control over the mintage of sound money? A quaint notion that would indicate some semblance of responsible government and responsible government is one thing we do not have. See trade deficit, budget deficit and national debt for details.
Instead, the issuing of fiat debt-based money has been turned over to a CABAL of private banks if you haven’t heard: The Evil Fuckers (TM).
”1 Timothy 6:10 KJB… “For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.”
Boom.
Bimetallism can never work. The government is essentially defining a fixed ratio in value between silver and gold. This is always in conflict with what the market is saying the ratio should be, leading to hoarding of one or the other per Gresham’s law. Price fixing never works for long.
I have read that geologists believe that there is (or has been) 15 times as much silver in the ground, compared to gold. If so, the 15:1 ratio as desired by some in the 19th century seems apropos.
Minting silver coins sure would keep inflation in check. Two candy bars would only cost a dime. A gallon of gas would cost a quarter. A pound of beef would cost a half dollar. And plenty of silver coins could be carried in one’s pocket.
Bimetallism did work until 1964. The government cannot regulate silver and gold in a real market. The market you refer to Dan is a rigged market. In 1964 I was paid five silver quarters per hour for my work. I think that is worth $15.00 today in fiat currency.
Many people today think gold and silver money cannot work. That is because they never experienced using it.
Gold based money keeps government spending in check. Government wants a cashless society because then it can counter-fit all of it they want for their own use.
There will be a time when we will go back to the gold standard. We will be forced to. Today we carry plastic cards in our wallet because the inflation over the years have forced us to. Our dollars have become so worthless that we cannot even carry enough in our wallet to go grocery shopping for a large family.
With gold and silver coins we could go into a car dealership and purchase an automobile using our gold coins. How many of you out there remember that?
The people have been hoodwinked into using fiat. When are we going to wake up and demand the real thing. The constitution states that our currency has to be gold backed. Where is the amendment that changed that? Since when did House Joint Resolution 192 of June 5, 1933 have the power over a constitutional amendment to change the money system? The people back then were hoodwinked into turning in their gold. Even back then the people did not know the constitution they were living under.
It just goes to prove that clear written documents are not enough to secure our rights. Only the Will of the people can do that. But many of the people living today are will-less and that is why government no longer serves the people. Government serves money and power of the corporations.
Yup. What T-Bird said.
T-Bird: you’re almost dead on. The only issue is that the Constitution does not say gold-backed; it says ONLY GOLD OR SILVER COIN. If it’s gold backed, it means it’s paper. Governments tend to print more paper than the equivalent amount of gold in the vault. That’s how we got in this mess to begin with.
Your right Doc.