Question

Why was the issue of currency so important to Americans in 1896? What was at stake?

Answer 1

Answer : The debate on the form of money was core issue to Americans in 1896. At that time most Americans all times talked about the currency form (silver or gold) .

In 1893 America face a great depression situation. Farmers believe that gold standard was the reason for depression in American currency. Gold standard in currency means that gold is used for currency to make. Because of shortage in gold money supply decreased at that time. As a result interest rate was high, many people lost their jobs ; overall American economy faced great depression level at that time.

As farmers believe that gold standard was the reason for depression, they wanted silver standard for currency. The central issue of presidential election in 1896 was free silver. Farmers believe that silver standard would lead to higher inflation which would increase the value of American currency . As result product value would increase and it also decrease the interest rate on debt. Silve standard means silver usation on making currency instead of gold. These farmers were the powerful third party in presidential election of 1896.