After Lincoln’s assassination, European central bankers sought to regain control over U.S. finances. Efforts included the 1866 Contraction Act, which reduced greenbacks in circulation, causing economic instability and paving the way for the Federal Reserve’s creation in 1913.

The push for a gold-backed currency over greenbacks or silver culminated in the Coinage Act of 1873, demonetizing silver and tightening the money supply. This benefitted financial elites but impoverished many Americans. Public backlash led to the 1876 Silver Commission, which criticized monetary contraction and its societal impacts.

Despite public and congressional calls for reform, bankers maintained influence. The American Bankers Association (ABA) lobbied against greenbacks and manipulated media to sway opinion and legislation, ensuring continued control over the money supply and consolidating centralized banking power.

This period highlights the economic hardship and political manipulation tied to the transition to the gold standard and centralized financial control.

View the video and its summary at “18. The Return of the Gold Standard”
and then discuss it below.