America Starts Its Contractions

1866

USA

On April 12th, the American Congress passed the Contraction Act, allowing the treasury to call in and retire some of Lincoln's Green-backs.

Year

Green-backs
In Circulation

Green-backs
Per Person

1866

$1.8 billion

$50.46

1867

$1.3 billion

$44.00

1876

$600 million

$14.60

1886

$400 million

$6.67

1870

US National debt $2,480,672,427.

USA

John D. Rockefeller incorporates Standard Oil Company of Ohio.

1872

USA

The US was in the mist of a recession maybe a depression so Congress passed the Coinage Act, which effectively stopped the mining of silver, coins that year.

Unofficial Version

"I went to America in the winter of 1872-73, authorized to secure, if I could, the passage of a bill demonetising silver. It was in the interest of those I represented - the governors of the Bank of England - to have it done. By 1873, gold coins were the only form of coin money." — Ernest Seyd

Within three years, with 30% of the work force unemployed. The US Silver Commission was set up to study the problem.

"The disaster of the Dark Ages was caused by decreasing money and falling prices... Without money, civilization could not have had a beginning, and with a diminishing supply, it must languish and unless relieved, finally perish. At the Christian era the metallic money of the Roman Empire amounted to $1,800 million. By the end of the fifteenth century it had shrunk to less than $200 million. History records no other such disastrous transition as that from the Roman Empire to the Dark Ages..." — United States Silver Commission

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