Transcript Farmers & The Populist Movement

Farmers & The Populist
Movement
PROBLEMS FACING FARMERS AND THE RISE
& FALL OF THE POPULIST PARTY
Look at the political
cartoon on p.426
Answer the questions:
1. How does the
cartoon depict the
plight of the
farmers?
2. Who does the
cartoonist suggest is
responsible for the
plight of the
farmer?
Economic Distress
A large part of the farmers problems stemmed from the issuing of Greenbacks
during the Civil War. $500 million were issued, but these weren’t backed by hard
currency.
When the government began to take greenbacks out of circulation, general
discontent began especially by those who had borrowed money.
This increased the value of money in circulation
and led to people who borrowed money having
to pay it back with dollars (which were worth
more then the money they borrowed).
Also, farmers received less money for their
crops due to the change in currency, and this
made them lose more money.
(i.e. Bushel of corn = $2.00 in 1867 and $0.68
in 1887.)
Problems with the Railroads
Since railroads did not have competition, they could set the shipping prices as they
pleased. Many farmers paid more to ship goods from North Dakota to
Minneapolis, then it would cost to ship goods from Chicago to England.
Grain brokers and merchants also made deals with
railroad companies to control the shipping and market
costs of goods.
The fact that farmers bought most goods on credit, and
the interest rates were very high, coupled with the
issues with shipping rates and the currency dispute,
farmers were losing at every turn.
The Farmers’ Alliance
Oliver Hudson Kelley began the Patrons of Husbandry in
1867, and this organization was meant to push for
reforms. It was also known as the Grange.
The Grange would teach its members how to organize,
how to set up farmers coops, and how to sponsor state
legislation to petition railroads.
Farmers’ Alliances came out of the Grange, and they
lectured on lower interest rates on loans and government
control over railroads and banks.
Membership in these groups grew to 4
million members, especially in the South
and West.
The Populist Party Platform
 Out of the farmer organizations came the People’s Party or Populist
Party.
 The leaders of farmers’ alliances and Grange knew they needed a
base of political power to be heard.
 Economic Reforms:



Increase in Money Supply
Graduated Income Tax
Federal Loan Program
 Government Reforms:
 Election of Senators by popular vote
 Single terms for President and V.P.
 Secret Ballot to end fraud
 Social Reforms
 8 hour work day
 Restrictions on immigration
These were so attractive to farmers
that the Populist presidential
candidate in 1892 received 10% of the
vote.
The Democratic Party eventually took
on parts of their platform.
The Panic of 1893
In 1893, the Philadelphia and Reading Railroad went bankrupt, followed by the
Erie, Northern Pacific, Union Pacific, and Santa Fe. This was due to railroads
growing more rapidly then the markets.
The gold reserves wore thin due to the purchasing of
silver, and this led to panic.
Silver plummeted as well and led to the closing of mines
and by the end of the year, over 15,000 businesses and
500 banks collapsed.
The bottom fell out of the economy and this led to
depression as 3 million people lost their jobs (1/5th of
the population unemployed) and farmers went hungry.
Silver or Gold
Gold Bugs
Silverites
 Bankers & Businessmen
 Farmers & Laborers
 Gold Standard/Less $ in
 Bimetallism/More $ in
circulation.
 Loans would be repaid in
stable money.
 Effects:

Deflation- prices fall, value of
money increases, and fewer
people have $.
circulation.
 Products would be sold
at higher prices.
 Effects:

Inflation- prices rise,
value of money decreases,
more people have $.
Bryan & The Cross of Gold
The 1896 campaign pitted the Rep. candidate
William McKinley against the Dem. William
Jennings Bryan.
McKinley firmly backed the gold standard, while
Bryan backed bimetallism.
His impassioned speech, known as the cross of
gold, made him a strong opponent:
“Having behind us the producing masses of this
nation and the world, supported by commercial
interests, the laboring interests, and the toilers
everywhere, we will answer their demand for a
gold standard by saying to them: You shall not
press down upon the brow of labor this crown of
thorns, you shall not crucify mankind upon a
cross of gold.”
The End of Populism
 Bryan’s free-silver stand had led to gold bug
Democrats to nominate their own candidate.
 His support was also weakened in cities where
consumers feared inflation.
 Bryan also did not have the funding or support from
the wealthy to campaign effectively.
 McKinley won the election and Populism fell.
McKinley’s poster…
What do you notice???
Although populism fell, if left
behind two powerful legacies:
1) The downtrodden could organize
and have political impact.
2) An agenda of reforms which
would be enacted later in the
20th century.
Reminders
 HW: SpNotes 14.1
 If your paper is not in, you have already lost 3pts and
will have lost 9pts by Monday.
 Have a good weekend and leave the room better then
you found it!