Category The Silver Purchase Act of 1934 & China’s Abandonment of the Silver Standard

By 1935, the silver standard, which had defined China’s monetary system for centuries, was in crisis. While most major economies had already abandoned silver-backed currencies in favor of gold or fiat money, China remained the last major nation still using…

By the early 20th century, China was the last major economy still operating under a silver standard, while most of the world had already transitioned to gold or fiat currencies. However, in 1934, a new U.S. silver policy—the Silver Purchase…