1873: The year America ditched silver as money and all hell broke loose
Summary
Host Gillian Tett and author Liaquat Ahamed explore the 1873 Coinage Act, which demonetized silver and triggered a global financial crisis known as the "Crime of '73." The episode details how this policy fueled decades of political strife, pitting Senator John Sherman against populist William Jennings Bryan, whose famous "Cross of Gold" speech championed free silver. Ultimately, the story illustrates the dangers of tying currency to precious metals and the enduring relevance of independent monetary policy.
Topics discussed
Introduction: The Crime of 1873 and Yakut Ahmed
The Coinage Act of 1873 and the end of bimetallism
John Sherman and the push for a gold standard
Global financial crises and the silver glut
Deflation, debt, and the rise of the Free Silver movement
Political backlash, conspiracy theories, and failed compromises
William Jennings Bryan and the Cross of Gold speech
Bryan's election loss and the Witwatersrand gold discovery
Why the US stuck to gold and lessons for fiat currency
Fates of Sherman and Bryan and modern parallels
Conclusion: Monetary policy, independence, and history
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