Hard money

Grant's second term began with an economic disaster that rendered thousands of northern laborers both jobless and homeless. In 1873 overspeculation by financiers and overbuilding by industry and railroads led to widespread failures and depression. Debtors on the farm and in the cities sought an inflationary , easy-money solution by demanding greenback paper money that was not supported by gold. In 1874, Grant finally decided to side with the hard-money bankers and creditors who wanted a stable money supply backed by gold and vetoed a bill calling for the release of additional greenbacks.