1896-S BARBER 25C MS66

The Panic of 1896 was a direct result of the Sherman Silver Purchase Act of 1890 that called for a dramatic increase in the amount of silver purchased by the US government. This new emphasis on silver debased the gold standard, reserves of which dropped significantly as it was used to purchase silver. The US government’s buying of foreign silver stimulated the trade and allowed the foreign sellers to charge above the worth of their metal. This overvaluing of silver also allowed foreign entrepreneurs to buy up US gold at a favorable exchange rate. So this 1896 quarter is a materialization of a policy that sent the US into a recession which only truly ended thanks to the economic stimulation of WWI.