The question of silver (versus gold) was a major issue in the 1896 U.S. presidential election because it touched on deep economic, regional and class tensions — and it was literally about how much money there was, who got it, and who paid for it. Here’s a breakdown of why silver became such a heated issue in that election.

Background: Gold, Silver, and Money Supply

For much of U.S. history the country operated on a form of bimetallism — meaning both gold and silver were used in coinage and backed the currency. 
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But by the late 19th century the U.S. was effectively on the gold standard (or headed that way). One key event was the Coinage Act of 1873 which essentially demonetized (stopped freely coining) silver dollars; opponents called it the “Crime of ’73”. 
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Teaching History
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Being on the gold standard means that the supply of money is tied to the amount of gold the Treasury (or the monetary system) holds — which tends to limit inflation (or even produce deflation). 
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Many farmers, miners, and debtors in the South and West believed that this “sound money” (gold-only) policy hurt them: it made money “tight”, prices tended to fall (which is bad if you’re selling crops), debt burdens got heavier (because you owed money in dollars that became more valuable relative to what you were earning) and credit was harder to obtain. 
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On the other hand, creditors, bankers, many industrialists and businesses (especially in the Northeast) generally favored the gold standard because it preserved the value of money, protected their investments and kept inflation in check. 
Miller Center

Why “Silver” Specifically Became a Major Political Issue in 1896

The movement for “free silver” (sometimes called the silver-oriented bimetallist movement) argued for unlimited coinage of silver (or at least greatly increased coinage) by the U.S. government at a fixed ratio to gold (typically 16:1 silver to gold). 
Encyclopedia Britannica

The idea: If you allow more silver to be coined, you increase the money supply, which tends to raise prices (inflation), which helps debtors and farmers (their crop incomes go up; their debts become easier to repay). 
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This demand became particularly acute in the 1890s as the U.S. economy experienced serious distress: the Panic of 1893, falling agricultural commodity prices, widespread farm hardship and a sense that “the money system” favoured eastern bankers and big business over the agrarian and mining interests. 
Nebraska State Historical Society

The election of 1896 became the flash-point: The Democratic Party (and the Populist Party) adopted the free-silver plank (the coinage of silver) as a major part of their platform, and nominated William Jennings Bryan who gave his famous “Cross of Gold” speech in July 1896, decrying the gold standard and supporting silver. 
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Opposed to him was the Republican nominee William McKinley, whose campaign voiced strong support for the gold standard (often framed as “sound money”) and protectionist tariffs. 
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Why Was It So Divisive & Politically Potent?

Regional/sectoral divide: Farmers, miners (especially silver‐miners in the West), and debtors tended to support free silver. Industrial workers, bankers, business interests, the Northeast and big cities leaned toward gold. 
HISTORY

Economic stress: Because the country was in a deeper economic crisis, with deflationary pressures (prices falling), unemployment high in some areas, the question of how to inflate (or at least loosen) the money supply was urgent for many. 
Federal Reserve Bank of Richmond

Symbol of larger struggle: The silver vs. gold debate wasn’t just about metals. It became a proxy for “ordinary people vs. financial elites”, “agrarian/Western interests vs. Eastern business interests”, “inflation (to help debtors) vs. deflation (to protect creditors)”. 
Teaching History

Campaign tool: Bryan’s “Cross of Gold” speech galvanized his supporters and clearly defined the issue—he framed gold monometallism as an oppressive system that was “crucifying” the working people and farmers. 
Teaching American History

Uncertainty and risk: The debate created economic uncertainty (banks worried about commitments to gold; what if the U.S. adopted unlimited silver and the value of money dropped?) which had real consequences for investment and credit. 
Federal Reserve Bank of Richmond

So, in short: What was at issue in 1896?

Should the U.S. continue essentially with gold as the sole or dominant standard for currency, keeping money tight and preserving value?

Or should the U.S. open up to unlimited coinage of silver (i.e., free silver), thereby inflating the money supply, helping debtors/farmers and expanding credit—but risking currency devaluation, inflation, loss of confidence, etc.?

The parties lined up: Republicans largely for gold (“sound money”), Democrats/Populists for free silver (and inflationary policy) and the election framed that choice.

Because the question touches immediate pain (farmers losing value, debt burdens rising) and long-term economic stability (businesses, banks worried about inflation), it became the defining issue of the campaign. 
Encyclopedia Britannica