United States Political Parties: The Greeback Party (1876-84)


Figure 1.--.

The Greenback or National Greenback Party was a short lived party founded in 1876 as American was emerging from the depression resulting from the Panic of 1873. Farmers focused on the currency as a cause of the Pacnic of 1873. Thus news fiscal policies were seen by some as the sollution to the economic crisis. The Greenback Party advocated an expansion of the money supply by issuing paper money. Esssentially this was a policy of inflation as the money supply at the time was primarily a function of the gold supply. 'Greenbacks' referred to the paper currency issued by the Federal Government in 1862 to help finance the Civil War. (The bills like moder American currency had green backs.) The Party maintained that a flexible supply of paper money would benefit working people. The also charged that limiting the issuance of paper money to that which could be backed by specie (gold or silver bullion) served the interests of the wealthy. This was a position that had been argued by Edward Kellogg well before the Civil War (1841). Alexander Campbell help popularize Kellogg's views on paper money during the 1860s. It was, however, not until the Panic of 1873 that Kellogg's and Cambell's ideas received substantial popular support. There was considerable opposition to the idea, especially from the financial class as creditors stood to lose vast sums if their outstanding loans were repaid in a deflated currency. Congress passed the Specie Resumption Act (1875). This put the United States on a hard currency system with paper money backed by specie. The Greeback Party was formed to repeal The Specie Resumption Act and to increase the printing of paper money (1876). The Greenback Party polled a mere 80,000 votes in its first election (1876). Labor troubles in the wake of the Panic of 1873 year increased support for the Party. Labor unrest was especially serious in 1877 and many workers began to join farmers in viewing economic problems on the manipulation of financeers and industrialists. The result was considerable success for the Greeback Party in the next Congressional election (1878). The Party this time polled nearly 1 million votes and elected 14 Greenback Congressnen. Support for the Party, however, wained after the 1878 election. The economy had recivered from the depression following the Pacnic of 1873. With the return of economic prosperity, there was less interest in economic reform. The Greenback Party had been founded largely on one issue and that issue had become increasingly moot with propperity and the realization that the Specie Resumption Act would not be repealed. The Party did poorly in the election of 1884 and that was to prove to be its last national campaign. The Greenback Party thus failed, it was, however, to have a major inpact on the Ppopulist Party and the Democratic Party.








CIH







Navigate the Children in History Website:
[Return to the Main U.S. individual political party page]
[Return to the Main U.S. fiscal history page]
[Return to the Main U.S. history page]
[About Us]
[Introduction] [Biographies] [Chronology] [Climatology] [Clothing] [Disease and Health] [Economics] [Freedom] [Geography] [History] [Human Nature] [Ideology] [Law]
[Nationalism] [Presidents] [Religion] [Royalty] [Science] [Social Class]
[Bibliographies] [Contributions] [FAQs] [Glossaries] [Images] [Links] [Registration] [Tools]
[Children in History Home]




Created: 4:34 PM 1/25/2013
Last updated: 4:34 PM 1/25/2013