Hard+Money+vs.+Soft+Money

An extremely controversial issue during this era concerned the expansion of the money supply. Some people wanted to use "hard money," or money that is directly backed by gold. Others advocated increasing the currency supply with "soft money," which involved greenbacks and an unlimited silver supply.This debate would expose conflicting opinions between America's "Haves" and "Have-Nots."

Hard money is directly back by gold. Supporters of hard money believe that this enables the money to maintain its value. Hard money was also thought to be more resistant to inflation. This would give the dollar a more stable value.
 * Hard Money[[image:http://www.abc.net.au/reslib/200710/r189122_708710.jpg width="184" height="124" align="right" caption="Hard currency is supported by gold"]] **

**Soft Money **
Soft money is not backed directly by gold. Instead currency would consist of paper money, or "greenbacks," and silver backed notes. Silver had been used to support money until the "Crime of 1873," in which Congress ceased the coining of silver. The issue was revived when large lodes of silver were uncovered in Nevada and demands for its coinage resumed. Some people wanted greenbacks in order to more easily repay debts. It was also desired because it provided for lower interest rates on borrowed money.

**Hard Money Supporters**  Hard money was supported by the "Haves." This group consisted of people such as investors, bankers, creditors, and large businesses. These money savvy individuals understood that if the amount of money in circulation did not grow, then the value of the dollar would increase. They were right; between the period 1865-1895, the value of the dollar tripled. Hard money was adamantly supported by the wealthier part of the population.

Soft money was supported by the "Have-Nots." These were working class, blue collar people, such as farmers and laborers. In order to advance their idea, The Greenback Party was formed by northern farmers who perceived greenbacks as a symbol of prosperity. In 1978, the Greenback Party managed to garner nearly 1 million votes during an 1878 Congressional election. Debtors and western miners desired the unlimited coinage of silver. The most influential advocate for soft money was William Jennings Bryan. Bryan was a powerful orator known for his memorable speeches. His famous decree that the Haves "Shall not crucify mankind upon a cross of gold" thrust Bryan in to the public eye and drew support for the Have-Not's desire for soft money.
 * Soft Money Supporters **