Greenback movement occurred for two decades that is from the year 1868 till the year 1888 in the United States of America.
- This movement was basically supported by the farmers who wanted a good amount of paper money to be in circulation.
- In order to kindle their interest, the U. S government did issue more than $ 450,000,000 in paper money but it was not actually backed by gold like other paper money.
- This also benefitted the American Civil War prevalent at that time.
- The war soon ended and therefore the fiscal conservatives issued a demand that the greenback which is also called the paper money that was not backed by the gold, should be taken back or as said it should be retired.
- This was strongly opposed by the farmers as it would harm their high price benefits.
- However, the Democrats after listening to both sides decided not to ignore the plan laid down by the Greenback movement.
- They brought about a plan that laid importance on saving a few war bonds and added that new greenback will be introduced.
- This announcement led to a panic situation in the entire nation.
- The farmers led their demands of wanting additional paper money or coins of silver or gold.
- Towards 1874, the champions of the widespread currency formed their own Labor party that attracted the interest of a lot of people, particularly from the Midwest.
- The following year that is 1875, the Congress passed an act called as the Resumption Act that brought information to their ears that the greenback will be redeemed in gold from the beginning of January 1, 1879.
- Then came the 45th Congress in the year 1877-79 that was majorly divided into friends and opponents which also supported a little amount of coinage of silver dollars.
