The Sherman Silver Purchase Act, a legislative measure passed in 1890, mandated that the U.S. government purchase nearly twice as much silver as before and coin it. This action was primarily intended to appease farmers and miners who advocated for bimetallismbacking the monetary system with both silver and goldwhich they believed would inflate the currency and alleviate their debt burdens. The Act did not, however, provide for free and unlimited coinage of silver, a key demand of the silverites.
Its significance lies in its attempt to resolve the contentious currency debate of the late 19th century. Proponents hoped it would increase the money supply, leading to inflation and benefiting debtors, particularly farmers struggling with falling crop prices. Opponents, mainly those favoring a gold standard, feared it would devalue the currency, destabilize the economy, and ultimately lead to the depletion of the nation’s gold reserves. The Act’s failure to achieve its intended economic goals and its contribution to the Panic of 1893 underscored the deep divisions within American society regarding monetary policy.
