In July 1891 Congress passed the Sherman Silver Purchase Act, which increased the amount of silver in circulation. The conflict between those who wanted to keep the gold standard and those who wanted the free circulation of silver was a major political issue of this era. Free Silver advocates included farmers and those who were struggling financially. The act mandated that the Department of the Treasury purchase 4.5 million ounces of silver monthly. The act also stated that treasury notes could be redeemed in gold or silver. The Panic of 1893 was caused in part because some feared the United States would desert the gold standard. Congress reacted by quickly repealing the Sherman Silver Purchase Act. However, the conflict between the gold standard advocates and those who wanted more money in circulation would continue for several more years.
