Comment: One of the big problems at that time

(See in situ)

One of the big problems at that time

Was regionalism. Gold producing states vs Silver producing states, versus states that were heavy importers/exporters of goods. Each had an agenda with regard to a fixed ratio of value for silver/gold.

At the time only gold coins were worth their intrinsic value in U.S. Currency. Other coins were not, usually worth less. Silver mining interests wanted the government to coin lots of silver, even with the deflated value, because it provided an infinite market for the booming mining operations - i.e liquidity, and increasing production would not flood the local market and bring down prices - since the price was fixed. (and transporting silver long distances to sell overseas was expensive)

In the east, importers liked having a coin that was worth more in foreign markets than in the US market. Labor was cheap, and for each dollar of good purchased, you could buy 1.25 worth of products from your suppliers. The same thing happens now with China's fixed currency.