Farmers and the Populist Movement Essential Questions What

Farmers and the Populist Movement Essential Questions: What economic problems confronted American farmers in the 1890 s? According to farmers and other supporters of free silver, how would bimetallism help the economy?

Farmers Unite to Address Common Problems • Review of problems for farmers in the late 1800 s: – Trapped in debt due to mortgaging – Banks foreclosing on mortgages – Railroads were taking advantage of farmers by overcharging transportation fees – Prices of crops were falling – Good farming land was becoming scarce

Economic Distress • During the Civil War, the US had issued almost $500 million in paper money, called greenbacks – They could not be exchanged for silver or gold – They were worth less than hard money of the same face value • Hard money was coins and paper money printed in yellow ink that could be exchanged for gold

Retirement of the Greenbacks • After the war, the gov’t began taking greenbacks out of circulation, but this had more effects on the farmers: – Increased value of hard money – Farmers now had to pay back loans using money that cost more than the money they actually had – At this time, they were still receiving less money for their crops • Between 1867 -1887 – a bushel of wheat fell from $2 to 68 cents

Bland-Allison Act • In 1878 – The gov’t was required to buy and coin at least $2 million - $4 million worth of silver each month • However, it wasn’t enough to support the increase in the money supply that the farmers wanted

• Plutocracy is a government whose interests favor the wealthy • What do you think this political cartoon is trying to convey?

Problems with the Railroads • Why were the railroad companies able to charge so much for shipping and storage? • BECAUSE THERE WAS NO COMPETITION • Union Pacific and Central Pacific partook in a merger – – since there were no other western railroad companies they could charge whatever price they wanted and the farmers had no other option, so they had to pay • In addition – grain brokers and merchants met with railroad companies secretly to determine market prices of crops

“The Modern Colossus of Railroads” • Men like Cornelius Vanderbilt took advantage of this system – industrialist who made his fortune in shipping and railroads

The Farmer’s Begin to Fight Back • In 1867, Oliver Hudson Kelley started the Patrons of Husbandry, an organization for farmers that became popularly known as the Grange – Its original purpose was to provide a social outlet and an educational forum for isolated farm families – But by the 1870 s, Grange members spent most of their time and energy fighting the railroads – Their plan was to set up farmers’ cooperatives and teach farmers how to organize and encourage state legislature to regulate railroads

Granger Laws – Help for Farmers • In 1871 Illinois authorized a commission to “establish maximum freight and passenger rates and prohibit discrimination” • The RRs fight back – In 1877 – Case of Munn v. Illinois • Challenged the constitutionality of regulatory laws • Supreme Court ruled in favor of the Granger Laws • States won the right to regulate the RRs for the benefit of farmers and consumers

The Plight of the Farmers

Interstate Commerce Act • The farmers’ success against big business was short lived though • In 1887, the Interstate Commerce Act was passed – Established the right of the federal gov’t to supervise RR activities – Established a five-member Interstate Commerce Commission (ICC) to regulate trade in the US • But the ICC experienced resistance from the RR companies • A major blow came to the ICC in 1897 when the Supreme Court determined that the council could not set maximum RR rates – What is ironic about this, and what did this mean?

The Farmer’s Alliance • The Grange gave rise to other organizations, most notably was the Farmer’s Alliance – Included people who sympathized with farmers – They sent lecturers to farm towns to educate farmers about lower interest rates on loans and gov’t control over railroads and banks – Speakers included Mary Elizabeth Lease – Membership grew to 4 million • Most were in the Southern Alliance • About 250, 000 were blacks in the Colored Farmers’ National Alliance

The Beginning of Populism • Leaders of the Alliance movement realized that to make far-reaching changes, they would need to build a base of political power • Populism – the movement of the people also referred to as the People’s Party was created in 1892 The first convention was held on July 2, 1892 – people demanded reforms to lift the burden of debt from farmers and to give them a stronger voice in politics

Populist Party Platform Economic Reforms Included: Political Reforms Included: • An increase in the money supply which would produce a rise in prices received for goods and services • A graduated income tax • And a federal loan program • The election of US senators by a popular vote • Single terms for presidents and vice-presidents • A secret ballot to end voting fraud • A call for an eight-hour workday • Restrictions on immigration

The Panic of 1893 • In February 1893, the Philadelphia, Reading, Erie, the Northern Pacific, the Union Pacific, and the Santa Fe RRs went bankrupt • In addition, the gov’ts gold supply had decreased due to its obligation to purchase silver • Panic sets in – People panicked and traded in their paper money for gold and silver – This panic spread to Wall street where prices of stock fell rapidly – The price of silver plunged causing silver mines to close – By the end of the year, over 15, 000 businesses and 500 banks collapsed – 3 million people lost their job

? Silver or Gold? • The two political parties were divided when determining a way to fix the economy • The Issue – which metal to use as the nations monetary currency • Two sides: – Republicans – business owners and bankers of the Northeast • “Gold bugs” – favored the gold standard, or backing dollars solely with gold • Effects: deflation – prices fall, value of $ increases, fewer people have money – Democrats – farmers and laborers of the South and West • “Silverites” – favored bimetallism – a monetary system where the gov’t would give citizens either gold or silver in exchange for paper money or checks • Effects: inflation – prices rise, value of money decreases, more people have money

Populist Party Puts Their Two Cents In • The Populist Party called for bimetallism and free coinage of silver • Yet their strategy was undecided: – Should they join forces with sympathetic candidates in the major parties and risk losing their political identity? – Or should they nominate their own candidate and risk losing the election?

1896 Election • The Republicans strongly supported the gold standard and nominated William Mc. Kinley • The Democratic Party came out in favor of bimetallism, including unlimited coinage of silver – At the Democratic convention in Chicago, former Nebraska congressman William Jennings Bryan delivered a passionate address to the assembly – This passion gave him the nomination for the Democratic Party presidential candidate

The “Cross of Gold” Speech Having behind us the producing masses of this nation and the world, supported by the commercial interests, the laboring interests, and the tollers 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. William Jennings Bryan

Populist Party • The Populist Party were both pleased and frustrated with the Democratic convention results • They liked Bryan but did not like the vicepresidential nominee, Arthur Sewall in the least • Thus, they nominated their own vicepresidential nominee, Thomas Watson

The End of Populism • Bryan faced a difficult campaign – His stance for bimetallism lead to weakened support in cities and with Democratic “gold-bugs” – His meager funds could not match the millions backing Mc. Kinley – He campaigned in 27 states, sometimes making 20 speeches a day to raise more funding and support – On the other hand, Mc. Kinley campaigned from the roof of his house, while followers who worked for him traveled and campaigned for him • Who do you think won? Who would you vote for?

• Mc. Kinley got approximately 7 million votes, while. . . • Bryan got about 6. 5 million votes

Answer the Essential Questions What economic problems confronted American farmers in the 1890 s? According to farmers and other supporters of free silver, how would bimetallism help the economy? Get out a piece of paper for your first quiz. Number it 1 -10.

Quiz 1. 2. Which group benefitted from Granger Laws? Which act created the first commission to regulate trade in the US? 3. Who was the inventor of the RR sleeping car? 4. Which region in the US was the primary area for mining? 5. Who was the Democratic nominee for the 1896 presidential election who was known for his “Cross of Gold Speech”? 6. Which region is known as America’s “Breadbasket”? 7. Who won the 1896 presidential election? 8. This is the terms for a long distance transportation of cattle 9. This act encouraged land giveaways from the government 10. This is the name for the breed of cattle Texas became known for a) b) c) d) e) f) g) h) i) j) William Jennings Bryan William Mc. Kinley George M. Pullman Interstate Commerce Act Homestead Act The Midwest The Rocky mountains The Great Plains long drive longhorns