Debt denominated in a flexible unit of account is dangerous! Beware the creditor who can change the terms of the loan!
In 1872 a British banker named earnest sead was given 100,000 pounds about 5 million dollars in todays dollar to bribe congress to demonetize silver and increase control of America/s money supply by England. The act eliminated "The free coinage of silver." this meant that if a holder of silver took it to the mint to be turned into coinage, there would be a charge, which had the effect of degrading silver. Not only that, but the act eliminated the silver dollar, the silver 'half dime,' the silver '3 cent,' silver '2 cent' coins, which had been in common use. The gold dollar was to be the dollar unit measured. The 1873 period, saw a depression and hard times for farmers and the common man. With silver being demonetized, there was a real shortage of money, which caused prices to decline. Farmers by the thousands were being foreclosed, and the theory was that if silver once again were monetized, there would be more money in circulation, prices would rise, and farmers and manufacturers would be saved.
