Which act required all currency in the U.S. to be backed by gold and contributed to the Panic of 1873?

The Coinage Act of 1873 is significant because it established the gold standard, which required that the currency issued in the United States be backed by gold. This move was a departure from earlier practices that allowed for both silver and gold backing of currency. By limiting currency to gold, it tightened the money supply and made it more difficult for businesses and individuals to access credit and capital.

The consequences of this act contributed directly to the financial instability that led to the Panic of 1873. Many businesses relied on credit, and when the constraints of a gold-backed currency became more pronounced, it resulted in bank failures and a severe economic downturn, demonstrating the impact of monetary policy on the broader economy. The act's focus on gold at a time of economic uncertainty is a key factor in understanding the financial panic that ensued, highlighting the effects of restrictive policies on economic growth and stability during that era.