monetary debate was over the basis for the value of the United States dollar. Nothing but gold and silver coin had ever been legal tender in the United States until the Civil War, when the mounting costs of the war forced the United States Congress to issue "greenbacks" (dollar bills backed by government bonds). Greenbacks helped pay for the war, but resulted in severe inflation . After the war, bondholders and other creditors (based in the North) wanted to return to a gold standard. At the same time, debtors (especially in the South and West) benefited from the way inflation reduced the real value of their debts, and workers and some businessmen liked the way inflation made for easy credit. The issue cut across parties, producing dissension among Republicans and Democrats alike and spawning a third party, the Greenback Party, in 1876, when both major parties nominated "hard money" candidates (i.e., candidates who favored the gold-backed currency instead of "soft money" greenbacks that generated inflation). Monetary debate intensified as Congress effectively demonetized silver in 1873 and began redeeming greenbacks in gold by 1879, while limiting their circulation. As the 1880 election season began, the nation's money was backed by gold alone, but the issue was far from settled. Tariff policy was a major source of party conflict in late 19th-century and early 20th century. During the Civil War, Congress raised protective tariffs to new heights. This was done partly to pay for the war, but partly because high tariffs were popular in the North. A high tariff meant that foreign goods were more expensive, which made it easier for American businesses to sell goods domestically. Republicans supported high tariffs as a way to protect American jobs and increase prosperity. Democrats condemned them as a source of higher prices for goods, whereas the higher revenues that they generated for the federal government were not needed after the conclusion of the Civil War. However Northern Democrats from manufacturing districts, especially in Pennsylvania, also supported high tariffs. In the interest of party unity, the leaders of each party often sought to avoid the question as much as possible. 1876 election In the election of 1876, Republican Rutherford B. Hayes of Ohio defeated Democrat Samuel J. Tilden of New York in one of the most hotly contested presidential elections in the nation's history. The early results indicated a Democratic victory, but the electoral votes