From Ohio History Central
The Greenback Labor Party was formed in the years following the American Civil War. During the Civil War, the federal government issued "greenback" paper money to keep a sufficient amount of currency in circulation. Because this type of money was not backed by gold or silver, inflation resulted and the greenbacks declined in value. By the end of the Civil War, a one-dollar greenback had decreased in value to only forty-six cents.
During the late 1860s and the 1870s, the federal government continued to allow greenbacks to circulate. In the late 1870s, the government announced that it would support all greenbacks with gold. This action stabilized the currency, increased its value and upset many middle and working-class Americans. Many of these people were in debt to various companies. With the currency's value increasing and inflation decreasing, it became more difficult for people to pay their debts.
The Greenback Labor Party played a role in Ohio politics during the late 1870s and the 1880s. In 1877, Democrat Richard M. Bishop was elected Governor of Ohio. Since the Civil War, Republicans had held most state offices. As a result of the economic hardship caused by the Panic of 1873, many Ohioans opposed the Republican Party and its policies. Bishop benefited from their dissatisfaction. Bishop lost support during his administration as the Greenback Labor Party became more popular. The Democrats in Ohio sought the support of the Greenback Labor movement and were successful in their efforts. The Greenback Labor supporters rallied behind the Democrats in the gubernatorial race of 1879 and in the next several elections as well.
[[Category:Industrialization and Urbanization]]