Financial History Issue 115 (Fall 2015) | Page 23

William Jennings Bryan and the “Cross of Gold” Speech By Ron Hunka Library of Congress On July 9, 1896, at the Democratic National Convention in Chicago, William Jennings Bryan, a former two-term congressman from Nebraska and recentlydefeated senate candidate, rose to deliver an oration to address the great monetary crisis dividing the nation. Bryan’s “Cross of Gold” speech would prove to be one of the most memorable addresses in American political history. In the last quarter of the 19th century, there were two major schools of thought about American monetary policy, each bitterly opposed to the other. Advocates of one were known as “silverites,” who favored a currency redeemable in silver or gold, a position called “bimetallism.” Silverites championed “free silver,” that is the free, unlimited coinage of silver. In addition, they advocated the circulation of “cheap” or devalued money. In this way, they hoped to be able to pay off their debts. (Silver had been used as money, along with gold, prior to its demonetization in the Mint Act of 1873. The Act was derisively known among free silver advocates as the “Crime of 1873.”) Advocates of the second school were designated “goldbugs.” To ensure the dollar’s stability, they believed that a sound currency must be based on gold and that silver should be demonetized. (A Republican Congress had essentially put the William Jennings Bryan’s “Cross of Gold” speech from the 1896 Democratic National Convention. nation on a gold standard in the 1873 Act. This meant that the value of the nation’s monetary unit, the dollar, was fixed to a defined measure of gold.) Adherents of the silverite position were mainly members of the Democratic party, the Populists — a political party that existed from 1891 to 1908, and other smaller parties. They were mainly farmers and laborers. The goldbugs were principally Republicans, who were predominantly bankers and businessmen. However, President Grover Cleveland, a Democrat, along with a significant block of his party, supported the monetary policies of the goldbugs. Such persons were often called “Bourbon Democrats,” a name sometimes mistakenly attributed to their drinking proclivities. The Sherman Silver Purchase Act of 1890 As a concession t