Final answer:
The Sherman Silver Purchase Act of 1890, influenced by the silver industry, attempted to increase the money supply by purchasing large amounts of silver, but its unintended consequences led to its repeal in 1893 due to depletion of gold reserves.
Step-by-step explanation:
The pressure from the silver industry led to the enactment of the Sherman Silver Purchase Act of 1890. This act mandated the U.S. Treasury to purchase a significant amount of silver each month to mint into silver dollars, with the intention to increase the amount of money in circulation and help indebted farmers and others. Unfortunately, the act resulted in the depletion of U.S. gold reserves because most people preferred gold-backed currency and would trade in their silver notes for gold, which contradicted the goal of introducing more money into circulation.
In response to the resulting economic strain, especially the deflation and the panic on Wall Street, President Grover Cleveland signed the act's repeal in 1893. The repeal was meant to restore confidence in the nation's gold reserves and stabilize the economy, but it did not solve the underlying problems of insufficient money supply for farmers and others struggling economically.