Question

The People’s Party supported fighting deflation by circulating

Answer 1

The People’s Party supported fighting deflation by circulating more silver coins.

Explanation:

People’s party in 1892’s election had professed free silver as their objective as demanded by the south and the west farmers suffering the depression in the economy. Hence the 19th century witnessed free silver movement which advocated the unlimited coinage of silver.  

At that time, silver began symbolising economic justice and prosperity for the masses as in the west it was supported by the silver mine owners and the farmers in the south who believed that this would help in increasing the crop prices.

Answer 2

The People’s Party supported fighting deflation by circulating "paper currency," since they viewed a lack of low-level inflation as benefiting the "moneyed interests" such as big banks--as opposed to the people--since it "tightened" the amount of money in circulation.