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Why was the metal that backed paper currency such an important issue in the 1896 presidential campaign?
Wiki User
∙ 13y ago
The metal that backed paper currency was an important issue in the 1896 presidential campaign because after the Panic of 1893, the government's supply of gold had worn thin. Without enough gold backing the paper money, the value of the US dollar would drop and it caused people to panic, Wall Street stock prices to plunge; an economic crisis like the Great Depression and now. So the main issue of the campaign was whether to stick to the gold standard, backing dollars with just gold(Republicans), and bimetallism, backing the dollar with gold and silver(Democrats) like we do today.
Paper money was seen as completely useless if you couldn't trade it in for gold or silver, and since there was an abundance of silver backing the dollar with both would decrease the value of a single dollar but increase the amount of paper money in circulation. By sticking to the gold standard, currency would be more stable but more expensive and supporters of bimetallism hoped that this method would help stimulate the stagnant economy.
Wiki User
∙ 13y ago
Jesco Wilm
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In what country was the fighting on the Western Front?
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Who was allowed to issue paper money during the 1800?
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What caused the aig bail out?
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Is the pound currency backed by gold?
no
What is currency backed by?
The economic resources and the military force belonging to that currency's country
What is Indian currency issue backed by?
gold
What is the name of paper money that was not backed by gold?
Floating currency.
Whats the currency of Wales?
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What is the difference between a fiat currency and a gold-backed currency?
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What kind of money did people use in 1713?
currency backed by gold
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It would increase the supply of money.
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it was not backed by gold silver or landIt was not backed by gold, silver, or land.
A form of currency during the revolutionary war that was not backed by gold or silver?
the continental
What was a form of currency during the revolutionary war that was not backed by gold or silver?
contintal
Is the currency backed by gold?
no it is not because you cannot exchange your money for gold at your bank
