Silver Money
August 28th, 2008, Posted in Cowboy Hats & Cowboy Belts
Why the silver coin, so important for farmers in the Populist movement?
I can not understand the importance money money money for gold. Would establish a pro-list, please? Also, how were valid People's Party / complaints from farmers in the movement?
To understand exactly what is meant by "free coinage of silver" is necessary to understand how the mints operated at the time of the standard gold. Essentially, any person who had not taken into gold, as seekers of success, or testers or refinery to sell its assets, it could one of the U.S. mint, where it is transformed into gold. The coins would then be delivered to the applicant, unless a deduction for small and Treatment financing operations of the Mint. Perhaps in most cases, the applicant does not receive the gold coins he had actually lodged, but receive their due compensation from the Mint was ready. Free silver advocates wanted silver to be accepted by the mints in the same manner, if you deposited enough silver, by weight, of the manufacture of a silver dollar, then the Mint will pay a silver dollar for you. After the discovery reserve money as the Comstock Lode in the West about the U.S. 12 years immediately after the American Civil War, a faction of American politics began to campaign for the federal government (which under the U.S. Constitution was responsible for the currency) for it to be freely coined at a rate of $ 1 per ounce. As the gold standard in force at the time of gold valued at the official price of $ 20 per troy ounce, the result of this policy could lead to a deterioration substantial increase in money supply and resulting inflation. At that time, the general price level was in a long-term deflationary trend, if inflation was seen by many as an appropriate means to keep wages and real interest rates. Modern economists who have studied the period are divided on the free coinage of silver had been inflation, but it is clear that geographically focused on the interest had views in particular. This interest, trade with a gold standard in the world over agree, gold is money in interest, and particularly mining interests, wanted money for money. Since banks rely mainly on both coasts, the effect of deflation is to increase the real interest rate for loans already very popular for manufacturers the ability to keep wages low is also very popular. For farmers who borrowed to plant every year, and employees outside the economy plant, also in perpetual debt, the idea of a higher salary was attractive. PRO: inflation, making it easier for workers and farmers to pay debts. It would be essential to increase workers' wages and also contribute to the silver mines to make much money. WITH: Inflation, cut into the benefits of bankers and investors. Reduce the wage increase in the profits of manufacturers.
Physical Silver is Money – End the Paper Ponzi
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