What legislation allowed for the issuance of legal tender notes backed by silver bullion?

The Sherman Silver Act of 1890 is recognized for its role in allowing the issuance of legal tender notes that were backed by silver bullion. This act aimed to increase the amount of silver the government would purchase and coin, intending to address the economic unrest and deflation that many farmers and laborers experienced during this time. By mandating the government to buy large amounts of silver, the act sought to inflate the currency and make it easier for people in debt to pay off their loans.

In contrast, the Gold Standard Act established a gold-backed standard for U.S. currency, moving away from the bimetallic standard that included both gold and silver. The Coinage Act of 1873, often referred to as the "Crime of '73" by advocates of silver, effectively stopped the minting of silver dollars and favored gold, leading to deflationary pressures. The Emergency Banking Act primarily focused on stabilizing the banking system during the Great Depression and did not deal with currency backed by silver. Thus, the Sherman Silver Act is distinctly significant for its specific purpose regarding silver-backed legal tender notes.