Panic+of+1873


 * 1)  Panic of 1873
 * Dispute on how money should be backed up
 * Rich people want one thing, middle class and poor people want another
 * Prussia now has a big pile of gold after the war from France
 * Prussia decides to create new coins (German Marks)
 * This was one of the many things that made silver less valuable
 * Value of the silver in the US goes down
 * Scares people who are interested in US currency, silver miners, etc…
 * Coinage Act
 * All US coins will be gold coins
 * Stops mintage of silver coins
 * Lot fewer coins
 * Money supply goes down
 * Causes deflation
 * This makes people with a lotta money happier, because its just sitting there getting more valuable
 * If you owe money that means you will owe even more money (becomes more valuable then what they owe)