The Cross of Gold speech was delivered by William Jennings Bryan, a former United States Representative from Nebraska, at the Democratic National Convention in Chicago on July 9, 1896. In his address, Bryan supported "free silver" (i.e. bimetallism), which he believed would bring the nation prosperity. He decried the gold standard, famously concluding the speech, "you shall not crucify mankind upon a cross of gold". Bryan's address helped catapult him to the Democratic Party's presidential nomination and is considered one of the greatest political speeches in American history.
For twenty years, Americans had been bitterly divided over the nation's monetary standard. The gold standard, which the United States had effectively been on since 1873, limited the money supply but eased trade with other nations, such as the United Kingdom, whose currency was also based on gold. Many Americans, however, believed that bimetallism (making both gold and silver legal tender) was necessary for the nation's economic health. The financial Panic of 1893 intensified the debates, and when President Grover Cleveland (a Democrat) continued to support the gold standard against the will of much of his party, activists became determined to take over the Democratic Party organization and nominate a silver-supporting candidate in 1896.
Bryan had been a dark horse candidate with little support in the convention and was barely known outside of his home state of Nebraska. His speech, delivered at the close of the debate on the party platform, electrified the convention and is generally credited with earning him the nomination for president. However, he lost the general election to William McKinley. The United States formally adopted the gold standard less than four years later in 1900 with the signing of the Gold Standard Act, retaining it domestically until 1933 and internationally until 1971.
Background Monetary standards and the United States In January 1791, at the request of Congress, Secretary of the Treasury Alexander Hamilton issued a report on the currency. At the time, there was no mint in the United States; foreign coins were used. Hamilton proposed a monetary system based on bimetallism, in which the new currency would be equal to a given amount of gold, or a larger amount of silver; at the time a given weight of gold was worth about 15 times as much as the same amount of silver. Although Hamilton understood that adjustment might be needed from time to time as precious metal prices fluctuated, he believed that if the nation's unit of value were defined only by one of the two precious metals used for coins, the other would descend to the status of mere merchandise, unusable as a store of value. He also proposed the establishment of a mint, at which citizens could present gold or silver, and receive it back, struck into money. On April 2, 1792, Congress passed the Mint Act of 1792. This legislation defined a unit of value for the new nation, to be known as a dollar. The new unit of currency was defined to be equal to of gold, or alternatively, of silver, establishing a ratio of value between gold and silver of 15:1. The legislation also established the Mint of the United States.
In the early 19th century, the economic disruption caused by the Napoleonic Wars caused United States gold coins to be worth more as bullion than as money, and they vanished from circulation. Governmental response to this shortage was hampered by the fact that officials did not clearly understand what had happened. In 1830, Treasury Secretary Samuel D. Ingham proposed adjusting the ratio between gold and silver in US currency to 15.8:1, which had for some time been the ratio in Europe. It was not until 1834 that Congress acted, changing the gold/silver ratio to 16.002:1. This was close enough to the market value to make it uneconomic to export either US gold or silver coins. When silver prices rose relative to gold as a reaction to the California Gold Rush, silver coinage was worth more than face value, and rapidly flowed overseas for melting. Despite vocal opposition led by Tennessee Representative (and future president) Andrew Johnson, the precious metal content of smaller silver coins was reduced in 1853. Silver was now undervalued at the Mint; accordingly little was presented for striking into money.
The Coinage Act of 1873 eliminated the standard silver dollar. It also repealed the statutory provisions allowing silver bullion to be presented to the Mint and returned in the form of circulating money. In passing the Coinage Act, Congress eliminated bimetallism. During the economic chaos of the Panic of 1873, the price of silver dropped significantly, but the Mint would accept none for striking into legal tender. Silver producers complained, and many Americans came to believe that only through bimetallism could the nation achieve and maintain prosperity. They called for the return to pre-1873 laws, which would require the Mint to take all the silver offered it and return it, struck into silver dollars. This would inflate the money supply, and, adherents argued, increase the nation's prosperity. Critics contended that the inflation which would follow the introduction of such a policy would harm workers, whose wages would not rise as fast as prices would, and the operation of Gresham's law would drive gold from circulation, effectively placing the United States on a silver standard.
Early attempts toward free silver
To advocates of what became known as free silver, the 1873 act became known as the "Crime of '73". Pro-silver forces, with congressional leaders such as Missouri Representative Richard P. Bland, sought the passage of bills to allow depositors of silver bullion to receive it back in the form of coin. Such bills, sponsored by Bland, passed the House of Representatives in 1876 and 1877, but both times failed in the Senate. A third attempt in early 1878 again passed the House, and eventually both houses after being amended in the Senate. The bill, as modified by amendments sponsored by Iowa Senator William B. Allison, did not reverse the 1873 provisions, but required the Treasury to purchase a minimum of $2 million of silver bullion per month; the profit, or seignorage from monetizing the silver was to be used to purchase more silver bullion. The silver would be struck into dollar coins to be circulated, or else stored and used as backing for silver certificates. The Bland–Allison Act was vetoed by President Rutherford B. Hayes, but was enacted by Congress over his veto on February 28, 1878.
Implementation of the Bland–Allison Act did not end calls for free silver. The 1880s saw a steep decline in the prices of grain and other agricultural commodities. Silver advocates argued that this dropoff, which caused the price of grain to fall below its cost of production, was caused by the failure of the government to adequately increase the money supply, which had remained steady on a per capita basis. Advocates of the gold standard attributed the decline to advances in production and transportation. The late 19th century saw divergent views in economics as the laissez-faire orthodoxy was questioned by younger economists, and both sides found ample support for their views from theorists.
In 1890, the Sherman Silver Purchase Act greatly increased government purchases of silver. The government pledged to stand behind the silver dollars and treasury notes issued under the act by redeeming them in gold. Pursuant to this promise, government gold reserves dwindled over the following three years. Although the economic Panic of 1893 had a number of causes, President Grover Cleveland believed the inflation caused by Sherman's act to be a major factor, and called a special session of Congress to repeal it. Congress did so, but the debates showed bitter divides in both major parties between silver and gold factions. Cleveland tried to replenish the Treasury through issuance of bonds which could only be purchased with gold, with little effect but to increase the public debt, as the gold continued to be withdrawn in redemption for paper and silver currency. Many in the public saw the bonds as benefiting bankers, not the nation. The bankers did not want loans repaid in an inflated currency—the gold standard was deflationary, and as creditors, they preferred to be paid in such a currency, whereas debtors preferred to repay in inflated currency.
The effects of the depression which began in 1893, and which continued through 1896, ruined many Americans. Contemporary estimates were an unemployment rate as high as 25%. The task of relieving the jobless fell to churches and other charities, as well as to labor unions. Farmers went bankrupt; their farms were sold to pay their debts. Some of the impoverished died of disease or starvation; others killed themselves.
Bryan seeks the nomination
Among those who spoke against the repeal of the Sherman Silver Purchase Act was Nebraska Representative William Jennings Bryan. Known as an orator even then ("the Boy Orator of the Platte"), Bryan had not always favored free silver out of conviction, stating in 1892 that he was for it because the people of Nebraska were for it. By 1893, his views on silver had evolved, and on the floor of the House of Representatives, he delivered a riveting three-hour address against repeal of the Silver Purchase Act. In his conclusion, Bryan reached back in history:
Despite the repeal of the act, economic conditions failed to improve. The year 1894 saw considerable labor unrest. President Cleveland sent federal troops to Illinois to end the Pullman Strike—workers at the Pullman Palace Car Company, which made railroad cars, had struck after wages were cut. Railway employees had refused to handle Pullman cars in sympathy with the strikers; this action threatened to paralyze the nation's rail lines. The President's move was opposed by the Democratic Governor of Illinois, John Altgeld. Angered by Cleveland's actions in the labor dispute, and by his uncompromising stand against silver, Altgeld began to organize Democrats against Cleveland's renomination in 1896. Although Altgeld and his adherents urged voters to distinguish between Cleveland and his party, the Democrats lost 113 seats in the House in the 1894 midterm elections, the greatest loss by a majority party in congressional history. The Republicans gained control of the House, as well as the Senate, which until 1913 was elected by the state legislatures rather than by the popular vote. Among those defeated for Senate was Bryan in Nebraska.
Bryan had long planned to run for president. Although he would only be 36 years old in 1896—one year above the constitutional minimum—he believed the silver question could carry him not only to the nomination, but to the presidency. He traveled widely, speaking to audiences across the nation. His speeches impressed many; even some of his opponents later conceded that Bryan was the most compelling speaker they had ever heard. Bryan's speeches evolved over time; in December 1894, in a speech in Congress, he first used a phrase from which would come the conclusion to his most famous address: as originally stated, it was "I will not help to crucify mankind upon a cross of gold."