The Democrats won the 1892 election only to face major financial and political challenges. Grover Cleveland, a strong supporter of the gold standard, became president, but he led a party divided between supporters of gold and silver. Meanwhile, the Farmers’ Alliance launched the People’s (Populist) Party, which was committed to radical reforms that included a complete reorganization of the financial system and the nationalization of the railroads. The new party posed a strong challenge to Republicans in the West and to Democrats in the South. In 1893, a paralyzing financial crisis hit the United States. Two factors drove it: a cessation and even a reversal of foreign investment, and the bankruptcy of many of the country’s railroads. Over the year, foreclosures and unemployment skyrocketed, and the country went into a deep depression that lasted into 1897. President Cleveland believed halting government purchases of silver would stabilize the financial situation. He secured legislation to this end from Congress but in the process split his party, which provided most of the opposition to the President’s initiative.