ison Act. Under this
the Treasury bought the minimum amount of silver bullion (two million
dollars' worth) every month for twelve years, and protested continually
that the silver coined from it was increasing the burden of redemption
on the gold reserve. As the price of silver fell farther, the demand of
the miners increased, and toward 1890 it was reinforced by the demands
of inflationists who desired it for another reason.

In 1890 the free-silver movement was not political in the sense that
parties had declared for or against it. In each great party it had
supporters, and few politicians were actively opposing it. A movement in
its favor, with the support of the Senate, was reshaped under the
influence of Sherman, and became a law in July, 1890. Under this the
Treasury was forced to buy 4,500,000 ounces of silver each month, and to
pay for it in a new issue of treasury notes. For the next three years
the United States kept at par with gold the Civil War greenbacks, the
Bland-Allison silver dollars, and the treasury notes of 1890. Only by
its constant willingness to pay out any form of money at the option of
the customer could it prevent the Gresham Law from operating and the
currency from declining to the bullion value of silver.

Every creditor feared the establishment of the silver basis because of
the loss which it would entail upon him. His dollars would shrink from
their gold value to their silver value. A depreciated currency was bad
enough when unavoidable, but the deliberate adoption of it would be
frank repudiation. Continually, after 1890, popular apprehension of this
grew more acute, discouraging the undertaking of new enterprises and
leading to the insertion of "gold clauses" in contracts. Gold was
hoarded whenever possible. The receipts at the New York Custom-House,
which had been mostly gold before 1890, contained less than four per
cent of gold in the winter of 1892-93. As the Treasury found its
expenditures nearing its receipts, and the proportion of gold in its
assets lessening, business men were badly worried over the future of the
currency, and an actual limit of available capital appeared.

For fourteen years there had been prosperity in the United States.
Financial and economic disturbances had been relatively slight, and
every year had seen a greater business expansion than the last.
Investment for permanent improvement had passed the amount of annual
savings, and before 1893 the United States