EDITOR’S NOTE: This is part of a weekly series on our region’s history coordinated by the Trumbull County Historical Society.

One of the main issues in the election of 1896 was the gold standard vs bimetallism represented by William McKinley and William Jennings Bryan, respectively.

This was certainly not a topic confined to this election but rather something that stemmed from the financial crisis escalated by the Civil War. McKinley was affiliated with the 23rd Ohio Volunteer Infantry and was the last president elected who served in the Civil War. His service in the Civil War influenced the legislation he passed during his presidency, which is illustrated in the Gold Standard Act of 1900.

One of the enticements for enlisting in the Civil War aside from patriotism was a rather liberal paycheck.

This presented a problem for both the North and the South because the money needed to pay soldiers had to come from somewhere.

The North was able to raise one fifth of the needed revenue through the sale of war bonds and collected taxes.

However, the South was only able to raise one 20th of what was needed because it was not as heavily populated and lacked the industry associated with the North. Both the North and the South decided to print money to make up the difference, but this created a problem because the printed money was not backed by anything tangible.

Inflation rose by 80% in the North and skyrocketed to 9,000% in the South.

It became difficult to purchase supplies and pay the soldiers since the money was basically worthless. This is something McKinley would have experienced firsthand, especially since one of his duties was to oversee rations. Because of his experience, one of the issues that defined his presidency was establishing the gold standard.

Although there were earlier attempts to stabilize the value of the American dollar by basing it on the value of gold (Coinage Act of 1873), the Gold Coinage Act of 1900 achieved this goal. McKinley signed this legislation into law on March 14, 1900. The debate over bimetallism was at least temporarily over, and gold became the singular metal upon which our currency system was based.

The value of the dollar was fixed as 25.8 grains of gold, and the price of gold was fixed at $20.67 per troy ounce. McKinley’s legislation required that all currency issued must be redeemable in gold, thus basing the currency on something tangible. The rates and fixed prices outlined in the Gold Coinage Act of 1900 would be recognized for more than three decades.

McKinley recognized the need for a more stable and sound financial system, which is why he promoted the gold standard. In fact, his supporters during the 1896 election were called “goldbugs” and they would wear gold bug campaign pins in reference to this major campaign issue.

McKinley passing the Gold Coinage Act of 1900 was twofold: it solidified the currency system and helped the United States align monetarily with other global powers such as England, Germany and France.

McKinley is known as the first modern president because the United States was now recognized as a global competitor in the economic scene, and he did this by providing economic stability via his legislation.