Free silver
A Fight for Inflation in the Gilded Age

The late 19th century in the United States, often called the Gilded Age, was a period of immense economic inequality. Farmers and debtors in the West and South struggled under a tightening money supply, while wealthy bankers and industrialists in the East prospered. This discontent birthed the Free Silver Movement, a controversial economic policy that advocated for a significant increase in the national money supply through the unlimited coinage of silver.

At the heart of the debate was the gold standard. Under this system, the value of the U.S. dollar was directly tied to a specific amount of gold. Proponents, mainly concentrated in the Eastern financial establishment, argued for its stability and predictability. However, for many, the gold standard meant a limited money supply, leading to deflation – a decrease in the overall price level. This disproportionately hurt debtors, as their debts remained the same while the money they earned to pay them back became less valuable.

The Free Silver Movement, championed by Populists and farmers' alliances, argued for a return to bimetallism, a system where gold and silver were used to back the currency. By increasing the money supply through unlimited silver coinage, they hoped to achieve inflation – a rise in prices – which would benefit debtors by making their debts easier to repay. Additionally, they believed inflation would stimulate the economy by encouraging borrowing and investment.

One of the most famous figures of the Free Silver Movement was William Jennings Bryan. His "Cross of Gold" speech at the 1896 Democratic National Convention became a rallying cry for the movement. Bryan argued that tying the U.S. economy solely to gold crucified the American people on a path of deflation and economic hardship.

The Free Silver debate was fiercely contested. Opponents argued that uncontrolled inflation would lead to economic instability and ultimately hurt the people it aimed to help. They pointed to historical examples of bimetallism's volatility and advocated for the stability of the gold standard.

Ultimately, the Free Silver Movement failed to gain widespread political support. The 1896 presidential election, largely fought over the silver issue, saw William McKinley, a defender of the gold standard, defeat William Jennings Bryan. The discovery of new gold reserves in the late 1890s also eased deflationary pressures, diminishing the urgency for free silver.

Despite its ultimate failure, the Free Silver Movement remains a significant chapter in American economic history. It highlighted the deep economic divisions of the Gilded Age and brought to light the struggles of farmers and debtors. While the specifics of the free silver policy may be debated, it serves as a reminder of the ongoing tension between economic stability and growth and the fight to ensure a fair and equitable financial system for all.