28. What the Goldbugs are doing for Uncle Sam

Source:  Kansas Populist (Cherryvale, KS), September 27, 1895

In January, 1894, the Cleveland Administration floated the first of several bond issues designed to bolster American gold reserves.  Because Cleveland's purpose was to raise foreign gold, the bonds were issued in large denominations and sold secretly through the J.P. Morgan banking firm primarily to foreign investors.  Populists viewed this as favoritism to foreign speculators.  Since 1790, U.S. Bonds have been one of the safest investments in history, something speculators would favor during a depression. 

Populists noted that bonds, like greenbacks, were backed only by faith in the credit of the federal government.  If financial instruments that were not backed by metal were to be issued by the government, Populists claimed that they should be for the benefit of the common people.  Specifically they should be non-interest bearing bonds (greenbacks) issued openly in small enough denominations for average citizens to use in their day to day business transactions.  Secretary of Treasury John Carlisle, Republican financial leader John Sherman, and Grover Cleveland are pictured as selling Uncle Sam to British financial interests in this cartoon.

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