People in what financial condition were most likely to favor expansion of the currency supply with greenbacks? What sparked interest in greenbacks?
1 Answer
May 23, 2018
Working Class people and farmers
Explanation:
The system of greenbacks was created by President Lincoln during the Civil War, it facilitated credit and made money more plentiful. During the Gilded Age, it was gradually replaced by the Gold Standard (the 1900 Gold Standard Act put a definite end to it). Greenbacks meant inflation instead of deflation.
Deflation meant people who relied on crops to pay back their mortgage had a decreasing income despite the interest rates remaining the same. It is one of the main factors that contibuted to the emergence of the Populist movement in the Midwest as people contested the power of the banks
More info: (1:10-1:40)https://www.youtube.com/watch?v=HBk5XV1ExoQ
