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Free silver was a major policy issue in late 19th century American politics. Its advocates were in favor of an inflationary monetary policy using the "free coinage of silver" as opposed to the deflationary gold standard. Its supporters were "Silverites". The Silverites promoted bimetallism, the use of both silver and gold as currency at the ratio of 16 to 1 (16 ounces of silver would be worth 1 ounce of gold). Because the actual value ratio was about 32 to 1 at the time, most economists warned that the cheaper silver would drive the more expensive gold out of circulation. Everyone agreed that free silver would raise prices; the question was whether or not this inflationary measure would be beneficial. The issue peaked from 1893 to 1896, when the economy was in a severe depression—called the Panic of 1893—characterized by falling prices (deflation), high unemployment in industrial areas, and severe distress for farmers.〔Charles Hoffmann, "The Depression of the Nineties," ''Journal of Economic History'' (1956). Vol. 16, No. 2) 16 (2): 137–164. (in JSTOR )〕 The debate pitted the pro-gold financial establishment of the Northeast, along with railroads, factories and businessmen, who were creditors who would benefit from disinflation (resulting from demand pressures on the relatively fixed gold money supply against a backdrop of unprecedented economic expansion), against poor farmers who would benefit from higher prices for their crops (resulting from the prospective expansion of the money supply by allowing silver to also circulate as money). Free silver was especially popular among farmers in the wheat belt (the western Midwest) and the cotton belts (the Deep South), as well as silver miners in the West. It had little support among farmers in the Northeast and the Corn Belt (the eastern Midwest). Free silver was the central issue for Democrats in the presidential election of 1896 and that of 1900, under the leadership of William Jennings Bryan. The Populists also endorsed Bryan and free silver in 1896, which marked the effective end of their independence. In major elections free silver was consistently defeated, and after 1896 the nation moved to the gold standard.〔Williams, 1910〕 The debate over silver lasted from the passage of the Fourth Coinage Act in 1873, which demonetized silver and was called the "Crime of '73" by opponents, until 1913, when the Federal Reserve Act completely overhauled the U.S. monetary system. ==Definitions and explanation== Under the gold specie standard, anyone in possession of gold bullion could deposit it at a mint where it would be processed into gold coins. Less a nominal seigniorage to cover processing costs, the coins would then be paid to the depositor; this was free coinage of gold by definition. The objective of the free silver movement was that the mints should accept and process silver bullion according to the same principle, notwithstanding the fact that the market value of the silver in circulating coins of the United States was substantially less than face value.〔Walter T. K Nugent, ''Money and American Society, 1865–1880'' (1968)〕 As a result, the monetary value of silver coins was based on government fiat rather than on the commodity value of their contents, and this became especially true following the huge silver strikes in the West, which further depressed the silver price. From that time until the early 1960s the silver content in United States dimes, quarters, half dollars and silver dollars was worth only a fraction of their face values.〔Milton Friedman, "Bimetallism Revisited", ''Journal of Economic Perspectives'' Vol. 4, No. 4 (Autumn, 1990), pp. 85–104 (in JSTOR )〕 Free coinage of silver would have amounted to an increase in the money supply, with inflation as the result. 抄文引用元・出典: フリー百科事典『 ウィキペディア（Wikipedia）』 ■ウィキペディアで「Free silver」の詳細全文を読む スポンサード リンク
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