Populism Chapter 16 Section 2 Rural America Populism

Populism Chapter 16 Section 2

Rural America • Populism – mvmt to increase farmers’ political power and to work for legislation in their interest • Problems of the farmers – Farm prices had dropped due to new technology – Production of more crops more supply leads to lower prices

Rural America • Problems of farmers cont’d – High tariffs • Increased the cost of manufactured goods – which farmers needed • Harder for farmers to sell their goods overseas – Felt victimized by • Banks – financed their loans • Railroads – set their shipping rates

Money Problems • Greenbacks – paper currency that could not be exchanged for gold or silver coins – Caused inflation • Inflation – decline in the value of money – As paper money lost value, the prices of goods soared

Money Problems • To get inflation under control the govt. – Stopped printing greenbacks – Stopped making silver into coins – Started paying off its bonds • The US did not have enough money supply to meet the needs of the country’s growing economy leads to deflation • Deflation – increase in the value of money – Money increased in value prices b/g to fall

Money Problems • Most farmers had to borrow money for seed and other supplies to plant their crops • Interest rates rose – Increased the amount farmers owed • With deflation, farmers sell their crop for less – But they still had the same mortgage payment

Money Problems • By 1873 the nation was in a severe recession – Farm income fell sharply • Farmers b/g to realize they would have to organize to get the govt. to meet their needs

The Grange • The Grange – nation’s first national farm organization – founded by Oliver Kelley • Grangers responded to the economic crisis in 3 ways 1. Pressured state legislatures to regulate railroad and warehouse rates 2. Joined the Independent National Party (the Greenback Party) • Wanted the govt. to print more greenbacks to increase money supply

The Grange 3. Tried to create cooperatives – marketing organizations that worked for the benefit of their members • Cooperatives pooled farmers’ crops and held them off the market in order to force up prices • None of these strategies improved farmers’ economic condition • Farmers b/g to move to new organizations they hoped could really help

The Farmers’ Alliance • Goals of the Farmers’ Alliance – Tried to help farmers with their economic situation – They did not want to undermine Democratic control of the South – Produced a list of demands and supported the candidates who supported their demands • Their demands the Subtreasury Plan

Farmers’ Demands • The Subtreasury Plan – Govt. set up warehouses called subtreasuries – Farmers store crops in the warehouses • The govt. would provide low interest loans to the farmers • The farmers hoped that this plan would… – Hold their crops off the market in large enough quantities to force the prices up – Democrats would adopt the plan and win the farmers’ vote

The People’s Party • Some Farmers’ Alliance leaders felt the organization was failing at helping the farmers – They formed the People’s Party (Populists) • Populists – a new political party • Eventually the Farmers’ Alliance broke and stopped supporting Democrats – They went to the Populist Party

Election of 1892 • The Populists nominated James B. Weaver as their presidential candidate • His platform called for … – Unlimited coinage of silver – Federal ownership of railroads – Graduated income tax – tax higher earnings more heavily – Stronger govt. to protect the public from greedy and irresponsible private interests • Cleveland – a Democratic wins the election

Panic of 1893 • Worst economic crisis in the nation’s history – up to this point – B/g with the Philadelphia and Reading Railroads filing bankruptcy • Could not repay their loans – Stock Market crashed – Banks closed • Approx. 18% of the workforce was either unemployed or on strike

Goldbugs and Silverites • The Democratic Party split into 2 factions… – Goldbugs – b/l the American currency should be based only on gold – Silverites – b/l coining silver in unlimited quantities would solve the nation’s economic crisis • Cleveland (president at the time) was a goldbug

Election of 1896 • Main Issue… – Are you a goldbug or a silverite? – How do we get out of the depression? • Republicans nominate William Mc. Kinley – Goldbug – “Full dinner pale” and Front-Porch Campaign • Appealed to urban areas and urban workers • Blame Cleveland the Democrats for the depression

Election of 1896 • Democrats nominate William Jennings Bryan – Silverite – Silver campaign • Appealed to southern and western farmers • Populists – joined with the Democrats so not to split the silver vote • Mc. Kinley won – Silver crusade and Populism died out