On November 25, 1874 a new political party was born at a convention held in Indianapolis, Indiana. They called themselves the Independent Party. In some states they would first appear on the ballot as the National Party. But within months the new party was widely known as the Greenbacks as they grew at an astonishing rate challenging the entrenched Republican and Democratic Parties.
The Party was formed out of frustration with both major parties as major eastern banking interests demanded that the Federal Government stop issuing paper money and return the issuance of currency to the banks. Federal paper money, popularly known as greenbacks, had been first issued under Secretary of the Treasury Salmon P. Chase to help finance the Civil War. Inflation had been an inevitable result.