Greenback Party
   HOME

TheInfoList



OR:

The Greenback Party (known successively as the Independent Party, the National Independent Party and the Greenback Labor Party) was an American political party with an
anti-monopoly ''Anti-Monopoly'' is a board game made by San Francisco State University Professor Ralph Anspach in response to ''Monopoly''. The idea of an anti-monopoly board game dates to 1903 and the original Monopoly created by Lizzie Magie. Background ...
ideology which was active between 1874 and 1889. The party ran candidates in three
presidential elections A presidential election is the election of any head of state whose official title is President. Elections by country Albania The president of Albania is elected by the Assembly of Albania who are elected by the Albanian public. Chile The pr ...
, in
1876 Events January–March * January 1 ** The Reichsbank opens in Berlin. ** The Bass Brewery Red Triangle becomes the world's first registered trademark symbol. * February 2 – The National League of Professional Base Ball Clubs i ...
, 1880 and
1884 Events January–March * January 4 – The Fabian Society is founded in London. * January 5 – Gilbert and Sullivan's ''Princess Ida'' premières at the Savoy Theatre, London. * January 18 – Dr. William Price atte ...
, before it faded away. The party's name referred to the non- gold backed paper money, commonly known as " greenbacks," that had been issued by the
North North is one of the four compass points or cardinal directions. It is the opposite of south and is perpendicular to east and west. ''North'' is a noun, adjective, or adverb indicating Direction (geometry), direction or geography. Etymology T ...
during the
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by other names) was a civil war in the United States. It was fought between the Union ("the North") and the Confederacy ("the South"), the latter formed by states th ...
and shortly afterward. The party opposed the
deflation In economics, deflation is a decrease in the general price level of goods and services. Deflation occurs when the inflation rate falls below 0% (a negative inflation rate). Inflation reduces the value of currency over time, but sudden deflation ...
ary lowering of prices paid to producers that was entailed by a return to a
bullion Bullion is non-ferrous metal that has been refined to a high standard of elemental purity. The term is ordinarily applied to bulk metal used in the production of coins and especially to precious metals such as gold and silver. It comes from t ...
-based monetary system, the policy favored by the
Republican Republican can refer to: Political ideology * An advocate of a republic, a type of government that is not a monarchy or dictatorship, and is usually associated with the rule of law. ** Republicanism, the ideology in support of republics or agains ...
and Democratic Parties. Continued use of unbacked currency, it was believed, would better foster business and assist
farmers A farmer is a person engaged in agriculture, raising living organisms for food or raw materials. The term usually applies to people who do some combination of raising field crops, orchards, vineyards, poultry, or other livestock. A farmer mi ...
by raising prices and making debts easier to pay. Initially an agrarian organization associated with the policies of the
Grange Grange may refer to: Buildings * Grange House, Scotland, built in 1564, and demolished in 1906 * Grange Estate, Pennsylvania, built in 1682 * Monastic grange, a farming estate belonging to a monastery Geography Australia * Grange, South Austral ...
, the organization took the name Greenback Labor Party in 1878 and attempted to forge a farmer–labor alliance by adding industrial reforms to its agenda, such as support of the 8-hour day and opposition to the use of state or private force to suppress
union Union commonly refers to: * Trade union, an organization of workers * Union (set theory), in mathematics, a fundamental operation on sets Union may also refer to: Arts and entertainment Music * Union (band), an American rock group ** ''Un ...
strikes. The organization faded into oblivion in the second half of the 1880s, with its basic program reborn shortly under the aegis of the People's Party, commonly known as the "Populists." Later, during the early 20th century, parts of the agenda from both parties were accomplished by the
Progressives Progressivism holds that it is possible to improve human societies through political action. As a political movement, progressivism seeks to advance the human condition through social reform based on purported advancements in science, techno ...
.


Organizational history


Background

The
American Civil War The American Civil War (April 12, 1861 – May 26, 1865; also known by other names) was a civil war in the United States. It was fought between the Union ("the North") and the Confederacy ("the South"), the latter formed by states th ...
of 1861 to 1865 greatly affected the financial system of the United States of America, creating vast new war-related expenditures while disrupting the flow of tax revenue from the
Southern United States The Southern United States (sometimes Dixie, also referred to as the Southern States, the American South, the Southland, or simply the South) is a geographic and cultural region of the United States of America. It is between the Atlantic Ocean ...
, organized as the
Confederate States of America The Confederate States of America (CSA), commonly referred to as the Confederate States or the Confederacy was an unrecognized breakaway republic in the Southern United States that existed from February 8, 1861, to May 9, 1865. The Confeder ...
. The act of Southern secession prompted a brief and severe business panic in the North and a crisis of public confidence in the Federal government.Paul Kleppner, "The Greenback and Prohibition Parties," in Arthur M. Schlesinger (ed.), ''History of U.S. Political Parties: Volume II, 1860-1910, The Gilded Age of Politics.'' New York: Chelsea House/R.R. Bowker Co., 1973; pg. 1552. The government's initial illusions of a quick military victory proved ephemeral and in the wake of Southern victories the federal government found it increasingly difficult to sell the government bonds necessary to finance the war effort. Two 1861 bond sales of $50 million each conducted through private banks went without a hitch, but bankers found the market for the 7.3% securities soft for a third bond issue. A general fear arose that the country's
gold Gold is a chemical element with the symbol Au (from la, aurum) and atomic number 79. This makes it one of the higher atomic number elements that occur naturally. It is a bright, slightly orange-yellow, dense, soft, malleable, and ductile met ...
supply was inadequate and that the nation would soon leave the
gold standard 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 la ...
. In December runs on deposits began in
New York City New York, often called New York City or NYC, is the List of United States cities by population, most populous city in the United States. With a 2020 population of 8,804,190 distributed over , New York City is also the L ...
, forcing banks there to disburse a substantial part of their hard metal reserves. On December 30, 1861, New York banks suspended the redemption of their banknotes with gold. This spontaneous action was followed shortly by banks in other states suspending payment on their own banknotes and the
U.S. Treasury The Department of the Treasury (USDT) is the national treasury and finance department of the federal government of the United States, where it serves as an executive department. The department oversees the Bureau of Engraving and Printing and t ...
itself suspending redemption of its own Treasury notes. The gold standard was thus effectively suspended.
United States Secretary of the Treasury The United States secretary of the treasury is the head of the United States Department of the Treasury, and is the chief financial officer of the federal government of the United States. The secretary of the treasury serves as the principal a ...
Salmon P. Chase Salmon Portland Chase (January 13, 1808May 7, 1873) was an American politician and jurist who served as the sixth chief justice of the United States. He also served as the 23rd governor of Ohio, represented Ohio in the United States Senate, a ...
had already anticipated the coming financial crisis, proposing to
Congress A congress is a formal meeting of the representatives of different countries, constituent states, organizations, trade unions, political parties, or other groups. The term originated in Late Middle English to denote an encounter (meeting of a ...
the establishment of a system of national banks, each empowered to issue banknotes backed not with gold but with federal bonds. This December 1861 proposal was initially ignored by Congress, which in February 1862 decided instead to pass the
First Legal Tender Act Legal tender is a form of money that courts of law are required to recognize as satisfactory payment for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything which when offered ("tendered") in pa ...
, authorizing the production of not more than $150 million of these legal tender United States Notes. Two additional issues were deemed necessary, approved in June 1862 and January 1863, so that by the end of the war some $450 million of this non-gold-backed currency was in circulation. The new United States Notes were popularly known as "greenbacks" due to the vibrant green ink used on the reverse side of the bill. A dual currency system emerged in which this
fiat money Fiat money (from la, fiat, "let it be done") is a type of currency that is not backed by any commodity such as gold or silver. It is typically designated by the issuing government to be legal tender. Throughout history, fiat money was sometime ...
circulated side by side with ostensibly gold-backed currency and gold coin, with the value of the former bearing a discount in trade. The greatest differential in value of these currencies came in 1864, when the value of a gold dollar equaled $1.85 in greenback currency.Kleppner, "The Greenback and Prohibition Parties," pg. 1553. Congress finally enacted Treasury Secretary Chase's National Bank plan in January 1863, creating a yet another form of currency, also backed by government bonds rather than gold and redeemable in United States Notes. This non-gold-based currency became the functional equivalent of greenbacks in circulation, further expanding the money supply. With the production of consumer goods impacted by the conversion of factories to wartime production and the expansion of the money supply, the United States of America experienced a period of protracted
inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...
during the Civil War. Between the years 1860 and 1865, the cost of living nearly doubled. As is the case in all inflationary periods, there were winners and losers created by the significant fall in currency value, with banks and creditors receiving less real value from the loans repaid by debtors. Pressure began to build in the financial industry for a rectification of the weak currency situation. A change of heads at the Treasury Department in March 1865 proved the occasion for a change of course in American monetary policy. New Secretary of the Treasury
Hugh McCulloch Hugh McCulloch (December 7, 1808 – May 24, 1895) was an American financier who played a central role in financing the American Civil War. He served two non-consecutive terms as U.S. Treasury Secretary under three presidents. He was originally ...
not only declared himself sympathetic to the banking industry's desire for restoration of a gold-based currency, but he declared the resumption of gold payments to be his primary aim. In December 1865, McCulloch formally sought approval from Congress to retire the greenback currency from circulation, a necessary first step towards restoration of the gold standard. In response, Congress passed the Contraction Act, calling for the withdrawal of $10 million in United States Notes within the first 6 months and an addition $4 million per month thereafter. Substantial contraction of the physical money supply followed. About $44 million in greenback currency was successfully withdrawn from circulation before a
recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
in 1867 helped fuel opposition in Congress to the deflationary redemption program. In February 1868, Congress terminated the Redemption Act and a state of what is today known as
gridlock Gridlock is a form of traffic congestion where "continuous queues of vehicles block an entire network of intersecting streets, bringing traffic in all directions to a complete standstill". The term originates from a situation possible in a grid ...
emerged, during which Congress refused to either formally leave the gold standard or to redeem its non-gold currency in circulation. Secretary of the Treasury of the
Grant administration The presidency of Ulysses S. Grant began on March 4, 1869, when Ulysses S. Grant was inaugurated as the 18th president of the United States, and ended on March 4, 1877. The Reconstruction era took place during Grant's two terms of office. The Ku ...
George S. Boutwell formally abandoned the contraction policy and embraced the ongoing state of political inertia. Currency policy emerged as a hot topic in national politics, with politically active
farmer A farmer is a person engaged in agriculture, raising living organisms for food or raw materials. The term usually applies to people who do some combination of raising field crops, orchards, vineyards, poultry, or other livestock. A farmer mig ...
s and representatives of the fledgling national
trade union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ( ...
movement endorsing a weak greenback-type currency as conducive to the needs of these groups as debtors.Kleppner, "The Greenback and Prohibition Parties," pg. 1554. A looser currency supply was seen as a way of breaking the perceived stranglehold on the national economy held by banks and wealthy industrialists. Chief among these supporters of so-called "Greenbackism" was the
National Labor Union The National Labor Union (NLU) is the first national labor federation in the United States. Founded in 1866 and dissolved in 1873, it paved the way for other organizations, such as the Knights of Labor and the AFL ( American Federation of Labor ...
(NLU), established in 1866. This and other groups began to turn to
political action In sociology, social action, also known as Weberian social action, is an act which takes into account the actions and reactions of individuals (or ' agents'). According to Max Weber, "Action is 'social' insofar as its subjective meaning takes ...
in 1870 in an effort to advance their political agenda, with an August 1870 convention calling for the establishment of the National Labor Reform Party. Joining organized labor were the organized farmers in the form of the
Patrons of Husbandry The Grange, officially named The National Grange of the Order of Patrons of Husbandry, is a social organization in the United States that encourages families to band together to promote the economic and political well-being of the community and ...
, commonly known as the Grange.Kleppner, "The Greenback and Prohibition Parties," pg. 1555. Established in 1867, the Grange concerned itself with the
monopoly A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
power exerted by railroads, which used various aggressive pricing mechanisms for its own benefit against the farmers who shipped commodities over its lines. When the Grangers turned to politics around the start of the 1870s, railroad price reform was chief on its agenda, with currency reform making it easier for debtors to repay their loans a distinctly lesser concern. The Greenback Party would be an alliance of organized labor and reform-minded farmers intent on toppling the political hegemony of the industrial- and banking-oriented Republican Party which ruled the North during the
Reconstruction period The Reconstruction era was a period in History of the United States, American history following the American Civil War (1861–1865) and lasting until approximately the Compromise of 1877. During Reconstruction, attempts were made to rebui ...
.


1873 economic crisis and response

The late 1860s and early 1870s were a time of frenetic railway construction and associated land speculation. Rather than a managed system of national railroad construction through
public works Public works are a broad category of infrastructure projects, financed and constructed by the government, for recreational, employment, and health and safety uses in the greater community. They include public buildings ( municipal buildings, sc ...
or leaving the construction of lines strictly to market forces, Congress attempted to spur the growth of the industry through the grant of enormous tracts of
public land In all modern states, a portion of land is held by central or local governments. This is called public land, state land, or Crown land (Australia, and Canada). The system of tenure of public land, and the terminology used, varies between countrie ...
s to privately owned railway companies. In May 1869, the
First transcontinental railroad North America's first transcontinental railroad (known originally as the "Pacific Railroad" and later as the " Overland Route") was a continuous railroad line constructed between 1863 and 1869 that connected the existing eastern U.S. rail netwo ...
across the North American continent was completed, bringing many localities to within reach of a national market for the first time. A frenzy to complete additional railway lines to open up new frontier areas for development followed, a situation in which the United States government and the great railroad companies of the day maintained a common interest. In an effort to speed such development, Congress granted cash loans and some 129 million acres (52.2 million hectares) of publicly owned land to subsidize construction.John D. Hicks, ''The Populist Revolt: A History of the Crusade for Farm Relief.'' Minneapolis, MN: University of Minnesota Press, 1931; pp. 3-4. A great part of this massive stockpile of land needed to be converted into cash by the railways to finance their building activities, since railroad construction was a costly undertaking. New settlement had to be attracted to the virgin lands west of the Missouri River, which had been previously regarded by the public as worthless to the needs of agriculture due to insufficiencies of the soil as well as the arid climate. Millions of advertising dollars were spent by the railway companies promoting the agricultural development of the land which they had to sell.Hicks, ''The Populist Revolt,'' pg. 15. Populations skyrocketed and marginal lands were sold and settled. In 1873, the
economic bubble An economic bubble (also called a speculative bubble or a financial bubble) is a period when current asset prices greatly exceed their intrinsic valuation, being the valuation that the underlying long-term fundamentals justify. Bubbles can be c ...
burst. The Panic began with a crisis in the overextended railroad industry, when the brokerage house
Jay Cooke & Company Jay Cooke & Company was a U.S. bank that operated from 1861 to 1873. Headquartered in Philadelphia, Pennsylvania, with branches in New York City and Washington, D.C., the bank helped underwrite the Union Civil War effort. It was the first "wire ...
found itself unable to sell enough
Northern Pacific Railroad The Northern Pacific Railway was a transcontinental railroad that operated across the northern tier of the western United States, from Minnesota to the Pacific Northwest. It was approved by 38th United States Congress, Congress in 1864 and given ...
bonds to meet its financial obligations, leading to a default on loans and setting off a financial chain reaction. Runs began on banks, causing a series of bank failures, and manufacturers shuttered their production, laying off workers. Dozens of marginal railroads went bankrupt while unemployment skyrocketed. A lengthy depression ensued, continuing through 1878.Kleppner, "The Greenback and Prohibition Parties," pp. 1555-1556. Pressure was placed on Congress to alleviate the business crisis through reinflation of the currency, pitting railroad promoters and the iron industry against Eastern bankers and the merchant elite, who favored a stable, gold-based currency.Kleppner, "The Greenback and Prohibition Parties," pp. 1556. Although those favoring currency expansion won the day in Congress, which passed an Inflation Bill calling for a $46 million boost in output of National Bank notes that would raise the ceiling on unbacked currency back to $400 million, the legislation was
veto A veto is a legal power to unilaterally stop an official action. In the most typical case, a president or monarch vetoes a bill to stop it from becoming law. In many countries, veto powers are established in the country's constitution. Veto ...
ed by President Grant on April 22, 1874. The next Congress moved in the other direction, with the Republican leadership making use of steamroller tactics in order to finally resolve the dual currency situation through passage of the
Specie Payment Resumption Act The Specie Payment Resumption Act of January 14, 1875 was a law in the United States that restored the nation to the gold standard through the redemption of previously-unbacked United States Notes and reversed inflationary government policies promo ...
.Kleppner, "The Greenback and Prohibition Parties," pg. 1557. Under the plan the government would accumulate a sufficient gold reserve over the next several years through the sale of interest-bearing bonds for gold, using the accumulated metal to redeem the greenback currency on January 1, 1879. This deflationary move further tightened the already contracting economy, moving currency reform higher on the list of objectives of politically minded farmers. With the
Democratic Party Democratic Party most often refers to: *Democratic Party (United States) Democratic Party and similar terms may also refer to: Active parties Africa *Botswana Democratic Party *Democratic Party of Equatorial Guinea *Gabonese Democratic Party *Demo ...
still discredited in the minds of many Northerners for its pro-Southern orientation and the Republican Party dominated by pro-gold interests, conditions had become ripe for the emergence of a new political organization to challenge the political hegemony of the two established parties of American politics.


Establishment

The Greenback Party emerged gradually from the consolidation of like-minded
state State may refer to: Arts, entertainment, and media Literature * ''State Magazine'', a monthly magazine published by the U.S. Department of State * ''The State'' (newspaper), a daily newspaper in Columbia, South Carolina, United States * ''Our S ...
-level political organizations of differing names. According to historian Paul Kleppner, the origin of the Greenback Party is to be found in the state of
Indiana Indiana () is a U.S. state in the Midwestern United States. It is the 38th-largest by area and the 17th-most populous of the 50 States. Its capital and largest city is Indianapolis. Indiana was admitted to the United States as the 19th s ...
, where early in 1873 a group of reform-minded farmers and
political activist A political movement is a collective attempt by a group of people to change government policy or social values. Political movements are usually in opposition to an element of the status quo, and are often associated with a certain ideology. Some t ...
s declared themselves free of the established parties and established themselves as the Independent Party. One of the founding members, John C. Wilde, is cited several times in a northern Michigan newspaper from 1898 explaining the reasons for the beginning of the Party. The group nominated a slate for statewide office, running on a platform which called for expansion of the national currency. (In
Wisconsin Wisconsin () is a state in the upper Midwestern United States. Wisconsin is the 25th-largest state by total area and the 20th-most populous. It is bordered by Minnesota to the west, Iowa to the southwest, Illinois to the south, Lake M ...
in the same year, a short-lived Reform Party, also called Liberal Reform Party or People's Reform Party, a
coalition A coalition is a group formed when two or more people or groups temporarily work together to achieve a common goal. The term is most frequently used to denote a formation of power in political or economical spaces. Formation According to ''A Gui ...
of Democrats,
reform Reform ( lat, reformo) means the improvement or amendment of what is wrong, corrupt, unsatisfactory, etc. The use of the word in this way emerges in the late 18th century and is believed to originate from Christopher Wyvill#The Yorkshire Associati ...
-minded Republicans, and Grangers secured the election of
William Robert Taylor William Robert Taylor (July 10, 1820March 17, 1909) was an American politician and the 12th Governor of Wisconsin from 1874 to 1876. Early life Taylor was born in Woodbury, Connecticut. He was orphaned at age 6 when his father's ship was lost ...
as
Governor of Wisconsin The governor of Wisconsin is the head of government of Wisconsin and the commander-in-chief of the state's army and air forces. The governor has a duty to enforce state laws, and the power to either approve or veto bills passed by the Wiscons ...
for a two-year term, as well as a number of state legislators, but it never formed a coherent organization.) The Indiana Independent organization cast its eyes upon a broader existence the following year, issuing a convention call in August 1874 urging all "greenback men" to assemble at
Indianapolis Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Marion ...
in November to form a new national political party. The result of this call was an undelegated gathering of individuals held in November in Indianapolis which was more akin to an organizational conference than a formal convention. No new party was formally established, but a governing Executive Committee was named for the prospective "National Independent Party", with the body assigned the task of composing a declaration of principles and issuing another call for a formal founding convention. Several regional conventions took place in 1875, merging the activities of local political parties towards a single end. Most of those attending these initial gatherings were farmers or lawyers, with few urban wage workers or trade union officials — the union movement having been shattered and atomized following the Panic of 1873. The party nominated its first national ticket at a convention held in
Indianapolis, Indiana Indianapolis (), colloquially known as Indy, is the state capital and most populous city of the U.S. state of Indiana and the seat of Marion County. According to the U.S. Census Bureau, the consolidated population of Indianapolis and Mari ...
in May 1876.Kleppner, "The Greenback and Prohibition Parties," pg. 1551. The party's platform focused upon repeal of the Specie Resumption Act of 1875 and the renewed use of non-gold-backed United States Notes in an effort to restore prosperity through an expanded
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include Circulation (curren ...
. The convention nominated New York economics pamphleteer
Peter Cooper Peter Cooper (February 12, 1791April 4, 1883) was an American industrialist, inventor, philanthropist, and politician. He designed and built the first American steam locomotive, the '' Tom Thumb'', founded the Cooper Union for the Advancement of ...
as its presidential standard-bearer. Cooper declared to the convention: The Greenback movement argued that the previous effort of using an unbacked currency had been sabotaged by monied interests, which had prevailed upon Congress to restrict the functionality of the notes — declaring them unsuitable for the payment of taxes or national debt.William D.P. Bliss and Rudolph M. Binder (eds.), ''The New Encyclopedia of Social Reform.'' New York: Funk and Wagnalls, 1908; pp. 562-563. This inevitably depreciated the value of the unbacked currency when circulated side by side with fully functional gold-backed notes, the Greenback movement argued. Moreover, this differential in values was exploited by speculators, who purchased unbacked currency at a severe discount with gold-backed notes and then pressured Congress into redemption of the same at a 1-to-1 rate — thereby netting the speculator a tidy profit. The Greenback Party of 1876 drew the support almost exclusively from farmers — few urban workmen cast ballots for the Greenback ticket.Selig Perlman, "Upheaval and Reorganization (Since 1876)," in John Commons et al. (eds.), ''History of Labour in the United States: Volume 2.'' New York: Macmillan, 1918; pg. 240. The situation changed somewhat in the summer of 1877, however, when a strike movement erupted across the country, leading to the suppression of local strike actions by Federal troops and a radicalization of workers. A myriad of local political organizations, independent not only of the Republican and Democratic Parties but also of the fledgling Greenback Party sprung up around the country, concentrated in the states of
Ohio Ohio () is a state in the Midwestern region of the United States. Of the fifty U.S. states, it is the 34th-largest by area, and with a population of nearly 11.8 million, is the seventh-most populous and tenth-most densely populated. The sta ...
,
Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northeastern, Appalachian, and Great Lakes regions of the United States. It borders Delaware to its southeast, ...
, and
New York New York most commonly refers to: * New York City, the most populous city in the United States, located in the state of New York * New York (state), a state in the northeastern United States New York may also refer to: Film and television * '' ...
.


Development

In the late 1870s, the party controlled local government in a number of industrial and mining communities and contributed to the election of 21 members in the
United States Congress The United States Congress is the legislature of the federal government of the United States. It is bicameral, composed of a lower body, the House of Representatives, and an upper body, the Senate. It meets in the U.S. Capitol in Washing ...
independent of the two major parties.Foner, ''Give Me Liberty!'' vol. 2, pg. 532. The movement found particular success at the 1874 elections in Wisconsin, California, Iowa and Kansas. This led the ''Chicago Weekly Tribune'' to state that the movement offered, "an opportunity to accomplish something for the country at large — not for the farmers merely, but for all who live by their industry, as distinguished from those who live by politics, speculations and class-legislation." Frustrated by their inability to get Democrats or Republicans to adopt inflationary monetary policy, southern and western leaders of monetary reform met in Indianapolis and proposed the creation of a new political party for currency reform. They would meet again in Cleveland to formally launch the Greenback Party in 1875. The Greenbackers condemned the National Banking System, created by the
National Banking Act The National Banking Acts of 1863 and 1864 were two United States federal banking acts that established a system of national banks, and created the United States National Banking System. They encouraged development of a national currency backed by ...
of 1863, the harmonization of the silver dollar (
Coinage Act of 1873 The Coinage Act of 1873 or Mint Act of 1873, was a general revision of laws relating to the Mint of the United States. By ending the right of holders of silver bullion to have it coined into standard silver dollars, while allowing holders of go ...
was in fact the "Crime of '73" to Greenback), and the
Resumption Act The Specie Payment Resumption Act of January 14, 1875 was a law in the United States that restored the nation to the gold standard through the redemption of previously-unbacked United States Notes and reversed inflationary government policies promot ...
of 1875, which mandated that the U.S. Treasury issue specie (coinage or "hard" currency) in exchange for greenback currency upon its presentation for redemption beginning on January 1, 1879, thus returning the nation to the gold standard. Together, these measures created an inflexible currency controlled by banks rather than the federal government. Greenbacks contended that such a system favored creditors and industry to the detriment of farmers and laborers. In 1880, the Greenback Party broadened its platform to include support for an
income tax An income tax is a tax imposed on individuals or entities (taxpayers) in respect of the income or profits earned by them (commonly called taxable income). Income tax generally is computed as the product of a tax rate times the taxable income. Tax ...
, an
eight-hour day The eight-hour day movement (also known as the 40-hour week movement or the short-time movement) was a social movement to regulate the length of a working day, preventing excesses and abuses. An eight-hour work day has its origins in the 16 ...
, and allowing women the right to vote. Ideological similarities also existed between the Grange (
The National Grange of the Order of Patrons of Husbandry The Grange, officially named The National Grange of the Order of Patrons of Husbandry, is a social organization in the United States that encourages families to band together to promote the economic and political well-being of the community and ...
) and the Greenback movement. For example, both the Grange and the GAP favored a national graduated income tax and proposed that public lands be given to settlers rather than sold to land
speculators In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable shortly. (It can also refer to short sales in which the speculator hopes for a decline in value.) Many s ...
.Hild, ''Greenback, Knights of Labor, and Populists,'' pg. 22. The town of
Greenback, Tennessee Greenback is a city in Loudon County, Tennessee, United States. Its population was at 1,102, according to the 2020 census. It is included in the Knoxville Metropolitan Statistical Area. History Early history Located near modern-day Greenback, ...
, was named after the Greenback Party about 1882. The party seems to have made use of slightly different official names in some states, with the organization appearing on the ballot in the November 1880
Sacramento, California ) , image_map = Sacramento County California Incorporated and Unincorporated areas Sacramento Highlighted.svg , mapsize = 250x200px , map_caption = Location within Sacramento C ...
, city election as the "Greenback Labor and Socialist Party." Among its national spokesmen, although not the best known, was Thomas Ewing, Jr., a noted Free State advocate in Kansas before the civil war, a controversial major general of Union forces during the war, and a Republican turned Democrat after the Grant Administration. His national debates on Greenback monetary policy led the party's growth and influence as spokesmen against the post-war redevelopment of monopolistic gold-based capitalism. Ewing's advice to Andrew Johnson had helped point the administration towards an anti-gold-standard Treasury department. Ewing served in Congress from 1877 to 1881 during the Hayes administration as a leading spokesman for those national politicians who wanted the nation's money supply used to expand commerce and fund westward expansion of the nation, not repay in gold the interest on civil war bonds Eastern bankers had bought to fund much of the civil war effort but whose antebellum lending practices to the South had helped slavery flourish. His 1875 national debates with hard money New York Governor
Stewart L. Woodford Stewart Lyndon Woodford (September 3, 1835 – February 14, 1913) was an American attorney and politician who served as a member of the United States House of Representatives and Lieutenant Governor of New York. Born in New York City, Woodf ...
set the stage for a rapid but brief rise in party national influence.


Decline and dissolution

The Greenback Party was in decline throughout the entire
Grover Cleveland Stephen Grover Cleveland (March 18, 1837June 24, 1908) was an American lawyer and politician who served as the 22nd and 24th president of the United States from 1885 to 1889 and from 1893 to 1897. Cleveland is the only president in American ...
administration. In the election of 1884, the party failed to win any
House A house is a single-unit residential building. It may range in complexity from a rudimentary hut to a complex structure of wood, masonry, concrete or other material, outfitted with plumbing, electrical, and heating, ventilation, and air condi ...
seats outright, although they did win one seat in conjunction with Plains States Democrats, James B. Weaver, as well as a handful of other seats by endorsing the Democratic nominee. In the election of 1886, only two dozen Greenback candidates ran for the House, apart from another six who ran on fusion tickets. Again, Weaver was the party's only victory. Much of the Greenback news in early 1888 took place in Michigan, where the party remained active. In early 1888, it was not clear if the Greenback Party would hold another national convention. The 4th Greenback Party National Convention assembled in
Cincinnati, Ohio Cincinnati ( ) is a city in the U.S. state of Ohio and the county seat of Hamilton County. Settled in 1788, the city is located at the northern side of the confluence of the Licking and Ohio rivers, the latter of which marks the state line wit ...
, on May 16, 1888. There were so few delegates who attended that no actions were taken. On August 16, 1888, George O. Jones, chairman of the national committee, called a second session of the national convention. The second session of the national convention met in Cincinnati on September 12, 1888. Only seven delegates attended. Chairman Jones issued an address criticizing the two major parties, and the delegates made no nominations. With the failure of the convention, the Greenback Party ceased to exist.


Legacy

Many Greenback activists, including 1880 Presidential nominee James B. Weaver, later participated in the Populist Party. By the middle of the 1880s, Greenback Labor nationally was losing its labor-based support, in part as a result of
craft union Craft unionism refers to a model of trade unionism in which workers are organised based on the particular craft or trade in which they work. It contrasts with industrial unionism, in which all workers in the same industry are organized into the s ...
voluntarism and in part as a result of Irish defections back to the Democratic Party. Historian Paul Kleppner has observed that one of the traditional functions of third parties in the American political system has been the raising of new issues, the testing of their viability amongst the electorate, and the pressuring of established political parties to appropriate these issues as part of their own electoral agenda.Kleppner, "The Greenback and Prohibition Parties," pg. 1550. In this the Greenback Party and the People's Party which followed it were ultimately successful, moving the Democratic Party to espouse looser monetary policy and an ultimate abandonment of the gold standard.


Conventions


Presidential tickets


Elected officials

The following were Greenback members of the
U.S. House of Representatives The United States House of Representatives, often referred to as the House of Representatives, the U.S. House, or simply the House, is the lower chamber of the United States Congress, with the Senate being the upper chamber. Together they ...
:
46th United States Congress The 46th United States Congress was a meeting of the legislative branch of the United States federal government, consisting of the United States Senate and the United States House of Representatives. It met in Washington, D.C. from March 4, 1879 ...
, March 4, 1879 - March 3, 1881. * William M. Lowe (1842–1882),
Alabama's 8th congressional district Alabama's 8th congressional district, now obsolete, was established in 1877. Alabama currently has seven congressional districts represented in the United States House of Representatives. According to the U.S. Census Bureau, Alabama was app ...
* Albert P. Forsythe (1830–1906),
Illinois's 15th congressional district The 15th congressional district of Illinois is currently located in central Illinois. It was located in eastern and southeastern Illinois until 2022. It is currently represented by Republican Mary Miller. With a Cook Partisan Voting Index r ...
*
Gilbert De La Matyr Gilbert De La Matyr (July 8, 1825 in Pharsalia, New York – May 17, 1892 in Akron, Ohio) was an American cleric and politician from New York and Indiana, serving one term in the U.S. House from 1879 to 1881. Life He graduated from a theologic ...
(1825–1892), "National"
Indiana's 7th congressional district Indiana's 7th congressional district is a congressional district in the U.S. state of Indiana. It is entirely located within Marion County and includes most of Indianapolis, except for the north side, which is represented by the 5th District. ...
* James B. Weaver (1833–1912),
Iowa's 6th congressional district Iowa's 6th congressional district is a former U.S. congressional district in the State of Iowa. It existed in elections from 1862 to 1992, when it was lost due to Iowa's population growth rate being lower than that of the country as a whole. T ...
*
Edward H. Gillette Edward Hooker Gillette (October 1, 1840 – August 14, 1918) was a nineteenth-century Populism, populist politician and editor from Iowa. He was elected on the United States Greenback Party, Greenback Party ticket to represent Iowa's 7th con ...
(1840–1918),
Iowa's 7th congressional district Iowa's 7th congressional district is a former congressional district in Iowa. It was eliminated after the 1970 election, leaving Iowa with six congressional districts. The state has since been reduced to four congressional districts. Redistrict ...
* George W. Ladd (1818–1892),
Maine's 4th congressional district Maine's 4th congressional district was a congressional district in Maine. It was created in 1821 after Maine achieved statehood in 1820 due to the result of the ratification of the Missouri Compromise The Missouri Compromise was a federal legi ...
*
Thompson H. Murch Thompson Henry Murch (March 28, 1838 – December 15, 1886) was a nineteenth-century politician, stonecutter, editor, publisher and merchant from Maine. He was among the first trade unionists elected to the United States Congress. Life and ...
(1838–1886),
Maine's 5th congressional district Maine's 5th congressional district was a congressional district in Maine. It was created in 1821 after Maine achieved statehood in 1820. It was eliminated in 1883. Its last congressman was Thompson Henry Murch Thompson Henry Murch (March 28, ...
*
Nicholas Ford Nicholas Ford (June 21, 1833 – June 18, 1897) was a U.S. Representative from Missouri. Born in Wicklow, Ireland, Ford attended the village school and Maynooth College, Dublin, Ireland. Ford emigrated to the United States in 1848 with his par ...
(1833–1897),
Missouri's 9th congressional district Missouri's 9th congressional district was a US congressional district, dissolved in 2013, that last encompassed rural Northeast Missouri, the area known as " Little Dixie," along with the larger towns of Columbia, Fulton, Kirksville and Unio ...
* Daniel Lindsay Russell (1845–1908),
North Carolina's 3rd congressional district North Carolina's 3rd congressional district is located on the Atlantic coast of North Carolina. It covers the Outer Banks and the counties adjacent to the Pamlico Sound. The district is currently represented by Greg Murphy following a speci ...
* Hendrick B. Wright,
Pennsylvania's 12th congressional district Pennsylvania's 12th congressional district is located in southwestern Pennsylvania, which includes Pittsburgh and much of Allegheny County. It has been represented since January 3, 2023 by Summer Lee. Prior to 2018, the 12th district was locate ...
*
Seth H. Yocum Seth Hartman Yocum (August 2, 1834 – April 19, 1895) was a United States Greenback Party, Greenback member of the U.S. House of Representatives from Pennsylvania. Seth H. Yocum was born in Catawissa, Pennsylvania. After attending rural school ...
(1834–1895),
Pennsylvania's 20th congressional district Pennsylvania's twentieth congressional district was a congressional district in southwestern Pennsylvania Pennsylvania (; ( Pennsylvania Dutch: )), officially the Commonwealth of Pennsylvania, is a state spanning the Mid-Atlantic, Northe ...
* George Washington Jones (1828–1903),
Texas's 5th congressional district Texas's 5th congressional district of the United States House of Representatives is in an area that includes a northeast portion of the City of Dallas, Dallas County including Mesquite plus a number of smaller suburban, exurban and rural counti ...
*
Bradley Barlow Bradley Barlow (May 12, 1814 – November 6, 1889) was a nineteenth-century banker and politician who served as a U.S. Representative from Vermont. Early life and career Barlow was born in Fairfield, Vermont, son of Colonel Bradley and Deborah ...
(1814–1889),
Vermont's 3rd congressional district } Vermont's 3rd congressional district is an obsolete district. It was created in 1803. It was eliminated after the United States Census, 1880, 1880 Census. Its last Congressman was William W. Grout. List of members representing the district ...
47th United States Congress The 47th United States Congress was a meeting of the legislative branch of the United States federal government, consisting of the United States Senate and the United States House of Representatives. It met in Washington, D.C. from March 4, 1881, ...
, March 4, 1881, to March 3, 1883. * William M. Lowe, Alabama's 8th congressional district.—Seated June 3, 1882, subsequently died August 12, 1882. * George W. Ladd, Maine's 4th congressional district *
Thompson H. Murch Thompson Henry Murch (March 28, 1838 – December 15, 1886) was a nineteenth-century politician, stonecutter, editor, publisher and merchant from Maine. He was among the first trade unionists elected to the United States Congress. Life and ...
, Maine's 5th congressional district * Ira S. Hazeltine
Missouri's 6th congressional district Missouri's 6th congressional district takes in a large swath of land in northern Missouri, stretching across nearly the entire width of the state from Kansas to Illinois. Its largest voting population is centered in the northern portion of the ...
*
Theron M. Rice Theron Moses Rice (September 21, 1829 – November 7, 1895) was a United States House of Representatives, U.S. Representative from Missouri. Biography Rice was born in Mecca, Ohio on September 21, 1829. He attended the academy in Farmington, Ohio ...
Missouri's 7th congressional district Missouri's 7th congressional district consists of Southwest Missouri. The district includes Springfield, the home of Missouri State University, and the popular tourist destination city of Branson. Located along the borders of Kansas, Oklahoma ...
*
Nicholas Ford Nicholas Ford (June 21, 1833 – June 18, 1897) was a U.S. Representative from Missouri. Born in Wicklow, Ireland, Ford attended the village school and Maynooth College, Dublin, Ireland. Ford emigrated to the United States in 1848 with his par ...
, Missouri's 9th congressional district * Joseph H. Burrows
Missouri's 10th congressional district The 10th congressional district of Missouri was a congressional district for the United States House of Representatives in Missouri from 1873 to 1983. It was eliminated as a result of the redistricting cycle after the 1980 Census The United ...
*
Charles N. Brumm Charles Napoleon Brumm (June 9, 1838 – January 11, 1917) was a Greenbacker and a Republican member of the U.S. House of Representatives from Pennsylvania. Early life and education Charles N. Brumm was born in Pottsville, Pennsylvania. He ...
, Pennsylvania's 13th congressional district *
James Mosgrove James Mosgrove (June 14, 1821 – November 27, 1900) was a Greenback member of the U.S. House of Representatives from Pennsylvania. James Mosgrove was born in Kittanning, Pennsylvania. He attended the common schools and was engaged in the iro ...
,
Pennsylvania's 25th congressional district Pennsylvania's 25th congressional district was one of Pennsylvania's districts of the United States House of Representatives. Geography In 1903 the district was drawn to cover Crawford and Erie counties, which had been its original area 60 years ...
* George Washington Jones, Texas' 5th congressional district
48th United States Congress The 48th United States Congress was a meeting of the legislative branch of the United States federal government, consisting of the United States Senate and the United States House of Representatives. It met in Washington, D.C. from March 4, 1883, ...
, March 4, 1883, to March 3, 1885. * Benjamin F. Shively, Anti-Monopolist
Indiana's 13th congressional district Indiana's 13th congressional district was a congressional district for the United States House of Representatives in Indiana. It was eliminated as a result of the United States Census, 1930, 1930 Census. It was last represented by Samuel B. Pette ...
* Luman Hamlin Weller,
Iowa's 4th congressional district Iowa's 4th congressional district is a congressional district in the U.S. state of Iowa that covers its northwestern part, bordering the states of Minnesota, South Dakota, and Nebraska, and the Missouri River. The district includes Sioux City, ...
*
Charles N. Brumm Charles Napoleon Brumm (June 9, 1838 – January 11, 1917) was a Greenbacker and a Republican member of the U.S. House of Representatives from Pennsylvania. Early life and education Charles N. Brumm was born in Pottsville, Pennsylvania. He ...
, Pennsylvania's 13th congressional district
49th United States Congress The 49th United States Congress was a meeting of the legislative branch of the United States federal government, consisting of the United States Senate and the United States House of Representatives. It met in Washington, D.C. from March 4, 1885, ...
, March 4, 1885, to March 3, 1887. * James Weaver, Iowa's 6th congressional district
50th United States Congress The 50th United States Congress was a meeting of the legislative branch of the United States federal government, consisting of the United States Senate and the United States House of Representatives. It met in Washington, D.C. from March 4, 1887, ...
, March 4, 1887, to March 3, 1889. * James Weaver, Iowa's 6th congressional district


See also

*
Producerism Producerism is an ideology which holds that those members of society engaged in the production of tangible wealth are of greater benefit to society than, for example, aristocrats who inherit their wealth and status. History Robert Ascher traces ...
*
United States Note A United States Note, also known as a Legal Tender Note, is a type of paper money that was issued from 1862 to 1971 in the U.S. Having been current for 109 years, they were issued for longer than any other form of U.S. paper money. They were k ...
*
List of political parties in the United States This is a list of political parties in the United States, both past and present. The list does not include independents. Active parties Major parties Third parties Represented in state legislatures ''The following third parties have ...
* List of 19th century American labor parties


Footnotes


Further reading

* Don C. Barrett, ''The Greenbacks and Resumption of Specie Payments, 1862-1879.'' Cambridge, MA: Harvard University Press, 1931. * Alexander Campbell
''The True Greenback: Or the Way to Pay the National Debt Without Taxes, and Emancipate Labor.''
Chicago: Alexander Campbell, 1868. * Peter Cooper
''The Nomination to the Presidency of Peter Cooper and his Address to the Indianapolis Convention of the National Independent Party.''
New York: Peter Cooper/Trow's Printing and Bookbinding, 1876. * Wesley Clair Mitchell
''A History of the Greenbacks: With Special Reference to the Economic Consequences of Their Issue, 1862-65.''
Chicago: University of Chicago Press, 1903. * Wesley Clair Mitchell
''Gold, Prices, and Wages under the Greenback Standard.''
Berkeley, CA: University of California Press, 1908. * Gretchen Ritter, ''Goldbugs and Greenbacks: The Antimonopoly Tradition and the Politics of Finance in America.'' New York: Cambridge University Press, 1997. * {{Historical left-wing third party presidential tickets (U.S.) Defunct political parties in the United States History of Indianapolis Left-wing populism in the United States Political parties established in 1874 1874 establishments in the United States Political parties in the United States