Bimetallism in the context of Gold

The United States dollar (symbol: $; currency code: USD) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. U.S. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color.

The U.S. dollar was originally defined under a bimetallic standard of 371.25 grains (24.057 g) (0.7734375 troy ounces) fine silver or, from 1834, 23.22 grains (1.505 g) fine gold, or $20.67 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. From 1934, its equivalence to gold was revised to $35 per troy ounce. In 1971 all links to gold were repealed. The U.S. dollar became an important international reserve currency after the First World War, and displaced the pound sterling as the world's primary reserve currency by the Bretton Woods Agreement towards the end of the Second World War. The dollar is the most widely used currency in international transactions, and a free-floating currency. It is also the official currency in several countries and the de facto currency in many others, with Federal Reserve Notes (and, in a few cases, U.S. coins) used in circulation.

Silver is a chemical element; it has symbol Ag (from Latin argentum 'silver') and atomic number 47. A soft, whitish-gray, lustrous transition metal, it exhibits the highest electrical conductivity, thermal conductivity, and reflectivity of any metal. Silver is found in the Earth's crust in the pure, free elemental form ("native silver"), as an alloy with gold and other metals, and in minerals such as argentite and chlorargyrite. Most silver is produced as a byproduct of copper, gold, lead, and zinc refining.

Silver has long been valued as a precious metal, commonly sold and marketed beside gold and platinum. Silver metal is used in many bullion coins, sometimes alongside gold: while it is more abundant than gold, it is much less abundant as a native metal. Its purity is typically measured on a per-mille basis; a 94%-pure alloy is described as "0.940 fine". As one of the seven metals of antiquity, silver has had an enduring role in most human cultures. In terms of scarcity, silver is the most abundant of the big three precious metals—platinum, gold, and silver—among these, platinum is the rarest with around 139 troy ounces of silver mined for every one ounce of platinum.

A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. The gold standard was the basis for the international monetary system from the 1870s to the early 1920s, and from the late 1920s to 1932 as well as from 1944 until 1971 when the United States unilaterally terminated convertibility of the US dollar to gold, effectively ending the Bretton Woods system. Many states nonetheless hold substantial gold reserves.

Historically, the silver standard and bimetallism have been more common than the gold standard. The shift to an international monetary system based on a gold standard reflected accident, network externalities, and path dependence. Great Britain accidentally adopted a de facto gold standard in 1717 when Isaac Newton, then-master of the Royal Mint, set the exchange rate of silver to gold too low, thus causing silver coins to go out of circulation. As Great Britain became the world's leading financial and commercial power in the 19th century, other states increasingly adopted Britain's monetary system.

Limping bimetallism was a monetary system in the United States that was dependent partially on silver but primarily on gold. It was developed after the abandonment of bimetallism and the adoption of the gold standard in 1873. The Bland–Allison Act of 1878 allowed the coining of new silver dollars, thus creating this system. Contrary to popular belief, the limping standard was not abandoned upon enactment of the Gold Standard Act of 1900.

Free silver was a major economic policy issue in the United States in the late 19th century. Its advocates were in favor of an expansionary monetary policy featuring the unlimited coinage of silver into money on-demand, as opposed to strict adherence to the more carefully fixed money supply implicit in the gold standard. Free silver became increasingly associated with populism, unions, and the perceived struggle of ordinary Americans against the bankers, monopolists, and robber barons of the Gilded Age. Hence, it became known as the "People's Money".

Supporters of an important place for silver in a bimetallic money system making use of both silver and gold, called "Silverites", sought coinage of silver dollars at a fixed weight ratio of 16-to-1 against dollar coins made of gold. Because the actual price ratio of the two metals was substantially higher in favor of gold at the time, most economists warned that the less valuable silver coinage would drive the more valuable gold out of circulation.

Bourbon Democrat was a term used in the United States in the later 19th century and early 20th century (1872–1904) to refer to members of the Democratic Party who were ideologically aligned with fiscal conservatism or classical liberalism, especially those who supported presidential candidates Charles O'Conor in 1872, Samuel J. Tilden in 1876, President Grover Cleveland in 1884, 1888, and 1892 and Alton B. Parker in 1904.

Bourbon Democrats were promoters of a form of laissez-faire capitalism which included opposition to the high-tariff protectionism that the Republicans were then advocating, as well as fiscal discipline. They represented business interests, generally supporting the goals of banking and railroads, but opposing subsidies and trade protectionism. They opposed the annexation of Hawaii. They fought for the gold standard against the use of silver to inflate prices, thereby promoting what they called "hard" and "sound" money. Strong supporters of states' rights and reform movements such as the Civil Service Reform and opponents of the corrupt city bosses, Bourbons led the fight against the Tweed Ring. The anti-corruption theme earned the votes of many Republican Mugwumps in 1884.

The Achaemenid Empire issued coins from 520 BC–450 BC to 330 BC. The Persian daric was the first gold coin which, along with a similar silver coin, the siglos (from Ancient Greek: σίγλος, Hebrew: שֶׁקֶל, shékel) represented the first bimetallic monetary standard. It seems that before the Persians issued their own coinage, a continuation of Lydian coinage under Persian rule is likely. Achaemenid coinage includes the official imperial issues (Darics and Sigloi), as well as coins issued by the Achaemenid provincial governors (satraps), such as those stationed in Asia Minor.

The history of the United States dollar began with moves by the Founding Fathers of the United States to establish a national currency based on the Spanish silver dollar, which had been in use in the North American colonies of the Kingdom of Great Britain for over 100 years prior to the United States Declaration of Independence. The new Congress's Coinage Act of 1792 established the United States dollar 1000 as the country's standard unit of money, creating the United States Mint tasked with producing and circulating coinage. Initially defined under a bimetallic standard in terms of a fixed quantity of silver or gold, it formally adopted the gold standard in 1900, and finally eliminated all links to gold in 1971.

Since the founding of the Federal Reserve System in 1913 as the central bank of the United States, the dollar has been primarily issued in the form of Federal Reserve Notes. The United States dollar is now the world's primary reserve currency held by governments worldwide for use in international trade.