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The Gilded Age (Gold .V. Silver (The Gilded Age saw a political divide on…
The Gilded Age
Gold .V. Silver
The Gilded Age saw a political divide on monetary policy. The dispute was based around whether currency should be backed by gold or gold and silver (bimetallism)
The 1873 Coinage Act reversed bimetallism, meaning the US dollar was just backed by gold
The Federal Governments monetary policy contracted the amount of money in circulation ("Hard Money"), increasing the buying power of the US dollar
Bankers, businessmen, investors and leaders ("The Gold Bugs") supported "Hard Money", viewing it as a prerequisite for industrialisation
Farmers and debtors ("The Silverites") advocated for "Soft Money" so that currency was more widely available and provide debtor-relief.
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Tariff Policy
The Gilded age saw the introduction of "protective tariffs". In their simplest, most distilled form they placed taxes on goods being imported from outside the US while providing an unprotected, free market for the sale of goods
These protective tariffs were damaging to the agricultural industry, with farmers being forced to buy expensive goods needed for survival and then sell their produce at depressed, unprotected prices due to oversupply and foreign competition
The policies allowed for rapid industrialisation, guaranteeing "the American market to the American manufacturer"
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