Greenback movement

Greenback movement

(1868–88) Campaign mainly by U.S. farmers to maintain or increase the amount of paper money in circulation. To finance the American Civil War the U.S. government issued paper money not backed by gold and printed in green ink, called greenbacks. After the war fiscal conservatives called for an end to greenbacks, but farmers and others who wanted to maintain high prices opposed the move. In 1868 the Democrats endorsed a plan to redeem some war bonds with new greenbacks. The depression after the panic of 1873 intensified the demand for more greenbacks or unlimited silver coinage. After passage of the Resumption Act (1875), which provided for redemption of greenbacks in gold, the newly formed Greenback-Labor Party sought its repeal. In 1878 it elected 14 members of Congress, but support waned after 1884. See also Free Silver Movement, Populist movement.