High Tariffs High Interest Rates Droughts and Natural

§ High Tariffs § High Interest Rates § Droughts and Natural Disasters § Deflation of money values § Overproduction § High Railroad Rates

§ In order to address their problems, farmers organized into cooperative groups § The Grange and the Populist Party were two organizations created by farmers to combat their problems § Through the influence of these groups, farmers were able to influence the Federal government to take action to regulate the Railroads § Railroads were often guilty of charging farmers prices that were unfair and too high § The Railroads were able to do this because they often held a monopoly over the transportation of goods to and from towns on the Great Plains

§ Set rates at a “reasonable and just” level § Set up the Interstate Commerce Commission to regulate these rates § No longer allowed for short hauls to be more expensive than long hauls

§ The Populist movement developed as the Grange movement of farmers declined in power § Its leaders decided that the only way they could gain results was to form third party (in addition to the Democrats and Republicans) § Therefore in May 1891, the Populist (or People’s) Party was formed § In June 1892, they ran their first candidates

§ In Finance: § § Currency inflation to be accompanied by either printing paper money or coining silver A graduated federal income tax that tax a higher proportion of larger incomes than of smaller incomes The establishment of postal savings banks The establishment of a federal loan program to benefit farmers § In transportation, Government ownership and operation of the: § § § railroad telegraph and telephone systems § In governmental reforms: § § § The election of United Stats senators by direct popular vote instead of by state legislatures One term for the President and Vice-President A secret ballot system Initiative – to enable the people to introduce bills in Congress and in state legislatures by petition The recall – to enable voters to remove officials from elected positions before their terms were completed § The referendum – to allow people to vote on bills after they had been passed by a legislature § Because the Populists also hoped to represent urban laborers they called for: § An 8 hour work day § restrictions on immigration

§ In the 1890 s, one of the major issues that farmers faced was a small supply of money in circulation § They believed in Bimetallism- where silver in addition to gold was used to back dollars (“Greenbacks”). It would lead to inflated currency and make it easier to pay back debts § On the other hand, the big business owners and capitalists in the East did not want the money supply to be tampered with. They were termed the “Gold Bugs” § The Populists backed the Democratic Party who called for the issuing of “free silver” and the Republicans backed the business owners and capitalists

§ Bryan’s “Cross of Gold” Speech § In 1896 and 1900 the Democrats ran a candidate with Populist leanings, William Jennings Bryan: § In a speech that Bryan gave at the Democratic Convention in 1896 he spoke of the importance of laborers and farmers in American Society, and asserted they should not be abused by the very system for which they are the basis. Therefore, there should be no limits on the money supply… § The speech ensured his nomination by the Democrats for President § Despite Bryan’s oratory skills he was beaten by the Republican candidate William Mc. Kinley in both 1896 and 1900