Questions: Question 14 Not yet answered Points out of 5.00 Flag question President Cleveland made the Panic of 1893 worse by convincing Congress to switch back to only minting gold. Select one: True False Previous page Next pa

The answer is True: President Cleveland made the Panic of 1893 worse by convincing Congress to switch back to only minting gold.

Explanation:

1. Historical Context: The Panic of 1893 was a severe economic depression in the United States that began in that year. It was marked by the collapse of railroad overbuilding and shaky railroad financing, which set off a series of bank failures.

2. Gold Standard: President Grover Cleveland was a strong supporter of the gold standard, which meant that the U.S. currency was backed exclusively by gold. At the time, there was a debate between those who supported the gold standard and those who supported bimetallism (using both gold and silver to back currency).

3. Legislative Action: In response to the economic crisis, Cleveland convinced Congress to repeal the Sherman Silver Purchase Act of 1890, which had required the U.S. government to purchase a large amount of silver and issue currency backed by it. By repealing this act, Cleveland effectively moved the country back towards a gold-only standard.

4. Economic Impact: This decision worsened the economic situation for several reasons:

   • It reduced the money supply, as silver was no longer being used to back currency.
   • It led to deflation, which made debts harder to repay and reduced overall economic activity.
   • It did not restore confidence in the economy, as many people were already suffering from the effects of the depression.

5. Conclusion: By pushing for a return to the gold standard and reducing the use of silver, President Cleveland's actions are widely considered to have exacerbated the economic difficulties of the Panic of 1893.