At the end of the nineteenth century farmers in the Midwest were very critical of the trusts and of the gold standard. Gold Standard created deflation which lowered the benefits of farmers. For more on the gold standard, I want to direct you to a chapter in my book The Goldwatcher: Demystifying Gold Investing, written by its coauthor, John Katz. Only rich bankers could afford to have gold. McKinley won and after his victory farm prices began to improve. Thomas Franck @tomwfranck. Fed's Powell explains why a return to the gold standard would be so damaging to the economy. Published Wed, Jul 10 2019 12:24 PM EDT Updated Wed, Jul 10 2019 2:33 PM EDT. For many farmers in the late 1800s, debt grew and grew until the farm itself was finally lost. In today's excerpt – the gold standard. Answer is D. This was bad for people like farmers because it made the debt they had worth more than they owed. The Populist party collapsed and the farmers' revolt was over. The negative view of deflation in the United States, no doubt, was reinforced by farmers who believed that the prices of the commodities they produced had fallen faster than the manufactured goods they consumed. The Republicans, led by William McKinley (1843 – 1901), supported the gold standard. The gold standard is a monetary system in which a nation’s currency is pegged to the value of gold. Farmers and debtors in the Free Silver Movement had long advocated a bimetallic (gold and silver) standard for the nation’s currency in the belief that an increase in the amount of money in circulation would raise crop prices and allow for easier debt repayment.… They could have sold their production for higher prices. A gold standard, they … Gold supplies are also unreliable: If miners went on strike or new gold discoveries … This was because new discoveries of gold increased the supply and because the Treasury put more banknotes into circulation. They said the United States should support its money only with gold. The farmers based in the United States around the 19th century opposed the gold standard which was pushed by the Democratic and Populist parties for the reason that farm product prices such as crops had been lowered in value so much even when the time that the country sought markets. The Gold Standard made inflation completely impossible. KAY GALLANT: Many Americans wanted a gold standard. In the chapter, titled “The Rise and Fall of the Gold Standard,” John asks whether the gold standard was to blame for the Crash of 1929 and, subsequently, the Great Depression. For most of the 182 years between 1789 and 1971, the United States embraced the principle of a dollar linked to gold — at first, at $20.67/oz., and then, after 1933, $35/oz. Therefore it was harder and harder … In recent political debates, there have been calls for a return to the gold standard. A gold standard would put the Fed in a similar predicament. 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