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The issue that divided farmers into two parties was primarily the debate over monetary policy, specifically the adoption of the gold standard versus the use of silver as currency. Many farmers, facing economic hardship and high debt, supported the free coinage of silver to increase the money supply and stimulate inflation, which would help them pay off debts. Conversely, more prosperous farmers and those aligned with banks and businesses supported the gold standard to maintain stable currency values. This division ultimately contributed to the formation of factions such as the Populist Party, which advocated for the needs of struggling farmers.

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