When we look at precious metals investing today at CMI Gold & Silver, we often remind our clients that understanding history helps inform smart investment decisions. The Free Silver Movement of the 1870s offers fascinating parallels to modern economic challenges.
America’s Economic Crisis in the 1870s
Picture this: America in the 1870s was wrestling with a severe economic depression. The country had just emerged from the Civil War, and a perfect storm was brewing:
Farmers were drowning in debt, watching their crop prices plummet while their mortgage payments remained fixed.
A strict gold standard meant money was scarce, especially in rural areas.
Banks were tightening their lending, making credit nearly impossible to obtain.
The infamous “Crime of 1873“—when Congress demonetized silver—had effectively put all monetary power in gold’s hands by eliminating silver unlimited coinage and the ability for citizens to convert their silver into legal tender coins.
As a result of this act, the economic environment slipped deeper into chaos, causing silver prices to drop. Resentment towards the change was further exacerbated by deflation as debts became harder to repay when farm prices fell. This led to the Panic of 1873, causing a public outcry and a swift reversal of silver’s role by enacting the Bland-Allison Act of 1878. The Act partially restored silver back into currency by requiring the Treasury to purchase and coin a certain amount of silver each month.
The outcome provided temporary stability in the market and relief for miners and farmers as they began to recover. The voice of the people was heard. Economic policies were enacted, and concessions were made to provide economic relief to those suffering from the fallout of these changes. This event highlighted the risks of rapid change in monetary policy.
Modern Parallels: Learning from the Past
As debates continue in our conversations on monetary change, whether that be a return to the gold standard or a transition to digital currency like Bitcoin, one can learn from historical events that the same level of resistance to change will likely occur. For perspective, if we returned to the gold standard today, as good as it sounds, it would be problematic with unknown economic consequences directly impacting the economic welfare of American citizens. We would see a similar outcry like in the 1870s. Such a dramatic shift in monetary policy would create immediate economic ripples across all sectors, just as it did when Congress effectively demonetized silver nearly 150 years ago.
The Silver Dollar’s Journey
The silver dollar holds a special place in American history. First authorized by the Coinage Act of 1792, these coins contained 0.7734 troy ounces of silver and became fundamental to commerce in the young nation. The Morgan Silver Dollar (1878–1904, then briefly in 1921) and the Peace Dollar (1921–1935) remain among the most recognized American coins ever produced.
When Congress passed the Coinage Act of 1873, it ended the free coinage of silver, effectively removing silver dollars from circulation. This decision, later dubbed the “Crime of ’73” by silverites, came at a time when new silver discoveries in Nevada were increasing supply. The timing couldn’t have been worse for everyday Americans already struggling with economic hardship.
William Jennings Bryan: Silver’s Champion
The movement found its voice in William Jennings Bryan, a young congressman from Nebraska. According to Britannica, Bryan became the Democratic presidential nominee in 1896 largely due to his passionate advocacy for silver. His famous “Cross of Gold” speech at the Democratic National Convention electrified the audience with its powerful conclusion: “You shall not crucify mankind upon a cross of gold.”
Bryan argued that the gold standard favored the wealthy at the expense of working people. Though he ultimately lost the election to William McKinley, his campaign brought national attention to the plight of farmers and laborers, and highlighted silver’s potential role in economic democracy.
The American Divide
The battle lines were clearly drawn: Eastern bankers and industrialists (the “gold bugs”) versus Western and Southern farmers and laborers (the “silverites”). Wall Street versus Main Street isn’t just a modern phenomenon—it was arguably even more dramatic during the Free Silver Movement.
What made silver so appealing to the average American? Just as today, where silver trades at about 1/80th the price of gold (making it more accessible for smaller investors), silver in the 1870s represented financial accessibility and economic democracy. The silverites argued that adding silver back into the monetary system would increase the money supply, ease debt burdens, and give working Americans a fighting chance.
Silver’s Legacy and CMI Gold & Silver’s Commitment
At CMI Gold & Silver, we still see echoes of this accessibility principle today. While we typically maintain a minimum purchase of 100 troy ounces for silver, we regularly offer special promotions to help new investors reach this threshold. Our current special on one-ounce silver buffalo coins is particularly popular—proving that silver’s role as “the people’s metal” endures. These ongoing specials reflect our commitment to making precious metals accessible to all Americans, just as the silverites advocated for in the 1870s.
For those interested in learning more about precious metals investing, we offer a free investment guide and recommend checking out educational resources from the World Gold Council and the Silver Institute. Our non-commissioned brokers are available to answer any questions you might have about incorporating silver into your investment strategy.
Learn more about the demise of US coinage here
Johnny on the Spot: A transparent article series by Johnny Estes, VP of CMI Gold & Silver. Get honest insights on current events shaping the precious metals market, free from fear-mongering, to help you make informed investment decisions.
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