The country soon became sharply divided on the issue of silver money.

Wealthy businessmen and bankers did not want to use silver money at all. They wanted the country's economy to be based only on gold. This was what was known as the gold standard. They believed the gold standard would keep the value of the dollar high. Using silver, they said, made the dollar less valuable.

FRANK OLIVER: Farmers, laborers and others wanted to use silver money. And they wanted an unlimited supply of it. Without silver, they said, the country's money supply would be too small. Gold would increase in value. People who had borrowed money would be hurt. They would have to pay back loans with dollars that were more valuable than those they had borrowed.

President Cleveland supported the gold standard. He opposed any use of silver for money. He said the United States should use only gold, as other nations did.

SHIRLEY GRIFFITH: President Cleveland was sure the silver purchase law of eighteen ninety had caused the economic depression. He explained the situation in this way:

The law had caused businessmen and investors to lose faith in the government's money policy. They were afraid their money would drop in value, as more silver money was put into use.

Investors began to withdraw their money from businesses. Banks began demanding early payment of loans. Everyone wanted gold. They took their paper money and their silver to the government and exchanged them for gold.