The Gold Law of 1887

The Gold Law of 1887, technically the Act of July 17, 1887, was U.S. legislation that established the value of the dollar in relation to gold, fixing the price of gold at $20.67 per ounce. This law reinforced the gold standard, meaning the U.S. dollar was directly linked to a specific amount of gold, promoting monetary stability and trust. It effectively limited the government's ability to issue more paper money without backing it with gold, ensuring that the currency’s value remained consistent and reducing inflationary risks.