Gold Standard Act

The Gold Standard Act of 1900 established the United States' official monetary system based on gold. This meant that paper money and coins were directly backed by a fixed amount of gold, ensuring currency could be exchanged for gold at a set rate. The act aimed to promote financial stability and confidence in the dollar by linking it to a tangible asset. It also helped standardize the currency, preventing excessive printing of money and maintaining economic trust. Essentially, it formalized gold as the foundation for U.S. currency during that period.