During the Civil War, the U.S. government printed a lot of “Greenbacks”, federal promissory notes that weren’t backed by gold at all (fiat money). After the War, they weren’t able to immediately phase them out.
Then, in 1873, the economy crashed, triggering the so-called “Long Depression”. As it turns out, in 1874 the Republican Congress, desperate to find a solution, passed a bill that authorized $100 million more Greenbacks.
President Grant vetoed the bill, and in later months reached a compromise bill (Specie Resumption Act) that put the U.S. back on gold. My question is what if he didn’t?
Then, in 1873, the economy crashed, triggering the so-called “Long Depression”. As it turns out, in 1874 the Republican Congress, desperate to find a solution, passed a bill that authorized $100 million more Greenbacks.
President Grant vetoed the bill, and in later months reached a compromise bill (Specie Resumption Act) that put the U.S. back on gold. My question is what if he didn’t?