Final answer:
The statement is false; indebted farmers in 1896 were drawn to the Democratic Party due to a policy that aimed to expand the money supply and introduce inflationary pressure to help alleviate their debts.
Step-by-step explanation:
The statement is false because indebted farmers in 1896 were attracted to the Democratic Party due to a policy that promised to expand the money supply by endorsing the unlimited coinage of silver at a ratio of 16 to 1, which was contrary to contracting the money supply. This policy aimed to introduce inflationary pressure, which would raise farm prices and help farmers with their debts. The Democratic Party's platform, especially their support for the free silver movement, resonated with farmers who were struggling under the gold standard, which restricted the money supply and exacerbated their debts. The Populist Party also advocated for the coinage of silver, which aligned closely with the struggling farmers' interests.