Causes New inventions & efficient techniques

introduced Lack of competition among railroads

Machinery is needed; shipping costs higher Money is in short supply

Effects• Prices of farm products decline

• Farmers’ earnings decrease• Farmers are unable to pay back loans• Banks lend money to fewer farmers

Price Indexes for Price Indexes for Consumer & FarmConsumer & FarmProducts: 1865-Products: 1865-

19131913

Price Indexes for Price Indexes for Consumer & FarmConsumer & FarmProducts: 1865-Products: 1865-

19131913

•Tariffs helped farmers by protecting them against competition from farm imports.•The tariffs also hurt farmers because it inadvertently raised the prices of farm machinery.•Thus, farmers had to take out many loans in order to buy the machinery

Farmers and

Tariffs

Problems with the Railroads

•Lack of competition lets railroads overcharge to transport grain

•Farms mortgaged to buy supplies; suppliers charge high interest

The Rail-roads

•Farmers wanted an increase in the money supplymoney supply, the amount of money in the national economy.

•WHY?WHY? Value of every dollar drops, leads to a widespread rise in prices, or inflationinflation.

•This trend would benefit people who borrow money (farmersfarmers), but it would not be good for money lenders (banksbanks).

The Money Issue

So they started a movement to support the use of SILVER coins, instead of GOLD

coins:– Before 1873 U.S. currency was on a bimetallic standardbimetallic standard,

consisting of gold and silver– Using silver would mean a more generous money supply– Inflation: An increase in available money would make

payment easier for them, which made the farmers’ debts worth less

The banks opposed the plan, preferring the country to use GOLD to back its money

supply• Silver was mined in the West

– Western miners supported silver

• Thus, this controversial issue had a regional component

• Pitted poor farmers against wealthy bankers– Elements of class strife

Bi-Metallism IssueBi-Metallism IssueBi-Metallism IssueBi-Metallism Issue

The Bland-Allison Act of 1878 Gold standard enraged the “silveritessilverites,” mostly silver-mining interest and western

farmers. SilveritesSilverites called for free silver (precious white metal), the unlimited coining of

silver dollars to increase the money supply. Federal government was to purchase and coin more silver, thereby increasing the

money supply and causing inflation Vetoed by President Hayes because he opposed the inflation.

Congress overrode the veto. Treasury Department refused to buy more than the minimum amount of silver

required by the act. The act had limited effect.

Sherman Silver Purchase Act of 1890Increased the amount of silver that the government was required

to purchase every month

The law required the Treasury to buy the silver with notes that could be redeemed for either silver or gold.

Many people turned in their silver Treasury notes for gold dollars, thus depleting the gold reserves.

In 1893, President Cleveland pushed for and succeeded in repealing the Silver Purchase Act.

New gold mines allowed for the US to go back on the gold standard.

The “silver vs. gold” debate provided an issue around which farmers could organize

• 1) Grange Movement, – By 1875 had more than one million members.

• Started out as cooperatives– Purpose: Allow farmers to buy machinery and sell crops as a group,

and therefore, reap the benefits of economies of scale– Soon, they began to endorse political candidates and lobbied for

legislation

Print illustrating a granger's procession and mass meeting, in "History of the Grange Movement" (National Publishing Co., 1874).

Gift for the Grangers:

The Farmer Pays for All!

The Granges ultimately died out due to lack of money, but were replaced by Farmers’

Alliances.

• Grew into a political party called the People’s Party, the political arm of the Populist movement.

United United We We

Stand, Stand, Divided Divided We FallWe Fall

United United We We

Stand, Stand, Divided Divided We FallWe Fall

In 1889 both In 1889 both the Northern and the Northern and Southern Southern AlliancesAlliances merged into on— merged into on—thethe Farmers’ Farmers’ AllianceAlliance..

The People’s Party ran for the presidency in 1892

• Supported the generous coinage of silver• Called for government ownership of railroads and telegraphs• Demanded a graduated income tax, direct election of US senators, and

shorter workdays • Although their 1892 presidential candidate came in third, he won

more than one million votes (9% of popular vote)

The Independent People's Party (Populist) Convention at Columbus, Nebraska, where Omer Kem was nominated for Congress, July 15, 1890, photo by Solomon D. Butcher.

•Organized in 1867 in response to farmers’ isolation.•Helped farmers form cooperatives which bought goods in large quantities at lower prices. • The Grange also pressured government to regulate businesses on which farmers depended.

The Grange

•The Farmers’ Alliance called for political actions that many farmers could support. •The alliances won support for women’s rights. •Blacks allowed but parallel “Colored Farmers’ Alliance.”

Farmers’ Alliance

Populists •Farmers’ Alliances formed a new political party, The People’s Party or the PopulistsPopulists. •A national movement that was supported by farmers, the West and parts of the South….•Populists would elect a presidential candidate in the 1892 and 1896 presidential elections.

Local and state level

People’s Movement Spreads

Becomes a national movemnt

1892 1892 Presidential Presidential

ElectionElection

1892 1892 Presidential Presidential

ElectionElection

The Populist The Populist (Peoples’) Party(Peoples’) Party

The Populist The Populist (Peoples’) Party(Peoples’) Party

Founded by James B. Founded by James B. WeaverWeaver and Tom Watson. and Tom Watson.

Omaha, NE Convention in Omaha, NE Convention in July,July, 1892. 1892.

Got almost 1 million Got almost 1 million popularpopular votes. votes.

Several Congressional Several Congressional seatsseats won. won.

James B. Weaver, James B. Weaver, Presidential Presidential CandidateCandidate

&&James G. Field, VPJames G. Field, VP

Omaha Platform of Omaha Platform of 18921892

Omaha Platform of Omaha Platform of 18921892

1.1. Purer democracyPurer democracy: more involvement of people: more involvement of people Women’s suffrageWomen’s suffrage Direct election of U.S. senatorsDirect election of U.S. senators Term limits for CongressTerm limits for Congress

2.2. Govt. ownership of RRs, telephone & telegraph companies.Govt. ownership of RRs, telephone & telegraph companies.3.3. Income taxIncome tax4.4. Initiative and referendumInitiative and referendum

Citizens propose and review legislationCitizens propose and review legislation5.5. Restriction of undesirable immigration.Restriction of undesirable immigration.6.6. 8-hour work day for government employees.8-hour work day for government employees.7.7. Demanded free and unlimited coinage of silverDemanded free and unlimited coinage of silver8.8. A single term for President & Vice President.A single term for President & Vice President.9.9. Sherman Silver Purchase Act Sherman Silver Purchase Act

16 to 116 to 1 Purchase silver from mines in the westPurchase silver from mines in the west

As Cleveland took office in 1893, the country entered a four-year financial crisis.

• Hard economic times made Populists goals more popular, particularly the call for easy money

• Most people at the time, after all, had no money at all

• Times got so bad that even more progressive (even radical) movements gained popularity– Eg: In 1894 the Socialists, led by

Eugene V. Debs, gained support.

•In 1893, Jacob Coxey, of

Massillon, Ohio, and some 20,000 men and women began a march to Washington, DC.

•Demanded US Govt. public

works programs, mainly railroads for the nation's

unemployed.

Coxey’s Army, Coxey’s Army, 18941894

Coxey’s Army, Coxey’s Army, 18941894

Jacob Coxey & his “Army of Jacob Coxey & his “Army of the Commonwealth of the Commonwealth of Christ.”Christ.”

March on Washington = March on Washington = “hayseed socialists!”“hayseed socialists!”

•600 protesters persisted through the length of the journey and on May 1, 1894.

• "Coxey's Army""Coxey's Army" reached

Washington and marched along Pennsylvania

Avenue.

•Before "General" Coxey"General" Coxey could deliver a historic speech, however, he was arrested by District police

- for walking on the grass.

•

In 1896, the Populists backed Democratic candidate William Jennings Bryan

• He ran against Republican nominee William McKinley

• Bryan ran on a strictly Populist platform & based his campaign on the call for “free silver.”– An easy money supply would loosen the

control that Northern banks held over the country

• Lost the campaign• Economy soon improved & ended the Populist

movement.

1860 to 19251860 to 1925 •William Jennings Bryan was a gifted speaker, lawyer, three-time presidential candidate,

and devout Protestant. •Bryan made his career in

Nebraska politics. •Served in the U.S. House of

Representatives in 1890.

•Defender of the small farmer and laborer, Bryan worked closely with the Populist PartyPopulist Party.

•Bryan's efforts on behalf of farmers and laborers (the so-

called "common" people) earned him the title the ""Great Great

Commoner”Commoner”•Ran for the presidency

unsuccessfully in 3 elections as a Democrat.

•Known for the “Cross of Gold “Cross of Gold Speech”Speech”

•Argued the “real” business real” business menmen” were farmers,

agricultural workers, miners and small town merchants.

•Demonstrated the true ""pioneer spiritpioneer spirit"" of America

•These workers were all but ignored by a governmentignored by a government that served the interests of big cities and large corporate

enterprise.

William Jennings William Jennings BryanBryan

William Jennings William Jennings BryanBryan

“They tell us that the great cities are in favor of the gold standard. We reply that our great cities rest upon our broad and great prairies”.

“You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind

upon a cross of gold”

Using images from the Bible, he

stood with his head bowed

and arms outstretched.

William McKinley William McKinley (1843-1901)(1843-1901)

William McKinley William McKinley (1843-1901)(1843-1901)

Born in Ohio on January 29, 1843.Private during the Civil War and

earned the rank of major in 1865. Served in Congress from 1876 to

1890 and became a supporter of protective tariffs.

Elected governor of Ohio in 1891, serving a second term in 1893.

1896, the Republican Party nominated him for president.

stressed protective tariffssupported the gold standard.

Into Into Which Which

Box Will Box Will the the

VoterVoterof ’96 of ’96 Place Place His His

Ballot? Ballot?

Into Into Which Which

Box Will Box Will the the

VoterVoterof ’96 of ’96 Place Place His His

Ballot? Ballot?

1896 Election 1896 Election ResultsResults

1896 Election 1896 Election ResultsResults

By 1892, Populist Party had major

impact in agricultural states.

Gold Triumphs Over SilverGold Triumphs Over SilverGold Triumphs Over SilverGold Triumphs Over SilverMcKinley defeats McKinley defeats Bryan in the 1896 election.Bryan in the 1896 election.

1900 = 1900 = Gold Standard ActGold Standard Act

Confirmed the nation’s Confirmed the nation’s commitment to the gold commitment to the gold standard.standard.

A victory for the forces of A victory for the forces of conservatism.conservatism.

Why Did Bryan Why Did Bryan Lose?Lose?

Why Did Bryan Why Did Bryan Lose?Lose?

His focus on silver underminedHis focus on silver undermined efforts to build bridges to urban efforts to build bridges to urban voters. voters.

He did not form alliances withHe did not form alliances with other groups. other groups.

McKinley’s campaign was well-McKinley’s campaign was well- organized and highly funded. organized and highly funded.

Why Did Why Did Populism Populism Decline?Decline?

Why Did Why Did Populism Populism Decline?Decline?

1.1. The economy experienced rapid The economy experienced rapid change.change.

2.2. The era of small producers and The era of small producers and farmers was fading away.farmers was fading away.

3.3. Race divided the Populist Party, Race divided the Populist Party, especially in the South.especially in the South.

4.4. The Populists were not able to The Populists were not able to breakbreakexisting party loyalties.existing party loyalties.

5.5. Most of their agenda was co-opted Most of their agenda was co-opted bybythe Democratic Party.the Democratic Party.

Easy way to remember the Populists is through the book: The Wizard of Oz by Frank L. Baum.

The novel is reportedly a political allegory (according to Henry Littlefield).

• Dorothy = common man

• Her silver shoes = silver standard

• Scarecrow = farmer

• Tin Man = industrial worker

• William J. Bryan = cowardly Lion

The Wizard of OzThe Wizard of Oz by L. Frank by L. Frank BaumBaum

The Wizard of OzThe Wizard of Oz by L. Frank by L. Frank BaumBaum

1964: Henry Littlefield’s 1964: Henry Littlefield’s Thesis?Thesis?

1964: Henry Littlefield’s 1964: Henry Littlefield’s Thesis?Thesis?

a. The Cowardly Lion = William Jennings Bryan  

b. The Tin Woodsman = eastern industrial worker  

c. The Scarecrow = farmer

Wicked Witch of the East = Bankers

d. Dorothy and her "silver slippers" = the proposed silver standard  

e. The Yellow-Brick Road = the gold standard supported by

financiers  

f. The Wizard of Oz = President William McKinley  

Munn v. Illinois(1876)

Supreme Court decision stating that states had the ability to regulate private property if it affected public interest.

Wabash Case(1886)

Declared that it was unconstitutional for states to regulate interstate commerce. Showed need for Federal regulation of interstate commerce.