Coinage Act demonetizes silver — 'Crime of 73'
The Coinage Act of 1873, signed on February 12, 1873, eliminated the silver dollar from the list of coins the Mint was authorized to produce — effectively demonetizing silver as a monetary metal in the United States. The change was little-noticed at the time, but became politically explosive a few years later when large silver discoveries in Nevada and Colorado drove the market price of silver down sharply. Silver producers and debt-burdened farmers united in the 'Free Silver' movement demanding remonetization at 16 to 1 against gold — a ratio that would have meant massive inflation. The issue dominated U.S. politics for the next 23 years.
The 'Crime of '73' was not a crime so much as a technical change that later looked like one. Its political potency came from the timing: silver was demonetized just before a huge silver supply arrived, which would have driven inflation under the old standard. Whether this was deliberate or accidental remains disputed by historians.
04 · Wartime Suspensions
In the 19th century, wars became the standard trigger for currency debasement. The U.S. Civil War introduced paper greenbacks; the Franco-Prussian War forced France off silver; the Russo-Japanese War pushed Russia off gold. The pattern was always the same: suspend metallic convertibility at the start of the war, over-issue paper during it, then fight a losing political battle over whether to return to the old standard. The United States returned to gold in 1879 — at great political cost. Argentina, Russia, and several European countries never fully returned. By 1914 the monetary system was held together by a gold standard that everyone knew was one war away from collapse.
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