Populism National Problems 1890 1900 Populismappeals to the
Populism & National Problems 1890 -1900
• Populism—appeals to the common man • Not involved with big business or the “establishment. ” • Popular opinion goes against the wealthy industrialists • Change/reforms • Wealthy industrialists are taking advantage of the “common man” (the workers. ) • Populist candidates promise to help the “little people. ” • Populism lays the foundation for Progressivism • Farmers & miners get national attention.
PROBLEMS FOR FARMERS • Falling prices of agricultural products hurt farmers. • Protective tariffs raised the prices of the manufactured goods they purchased. • Neither party was interested in helping the farmers. • Since farmers lacked the political clout of industry (Robber Barons) they organized their own political party. • The National Grange began in 1867 originally as a social organization but soon became political.
Tariffs • Federal government increased tariffs. – Tariff is a tax on imported goods • Used to protect national industries (domestic production. ) • Helps the wealthy industrialists. • Could start tariff wars with other countries. • Hurts a country’s exports, particularly agricultural products. • Farmers try exporting their surpluses but other countries can’t afford our ag. products. • Surpluses go unsold—no $ for farmers.
Oliver Hudson Kelley, principal founder of the National Grange. The motto of the National Grange is “In essentials, unity; in non-essentials, liberty; in all things, charity. ”
• The main problem for farmers was railroad freight charges. • The Grangers believed the charges were too high. • They argued that RR were monopolies and should be regulated by the government. • The Grangers were able to push “Granger Laws” in many states. • These Granger laws set RR rates and rates of grain warehouses so farmers would not be overcharged.
• Munn v. Illinois The U. S. Supreme Court ruled that businesses like RR’s that provided broad public services could not be completely private since they operate “in the public interest. ” railroads operate in the public interest & can be regulated by the government. • The Grangers were also responsible for – Rural Free Delivery (mail service) – The Extension Service – Farm Credit System – Improvements in rural schools
THE SILVER ISSUE • Farmers and miners joined forces to create inflation by putting more money in circulation. – This would help farmers since prices of their products would go up. – The miners would get their silver minted into coins and there would be a practical use for their silver. ****** Congress voted to stop minting silver in 1873. (KA “The Crime of 1873”)
• Then in 1890, Congress passed the Sherman Silver Purchase Act. – This increased the amount of silver coined to 4. 5 million ounces a month. – This amount was close to the total amount being mined at the time. • The price of silver, however, began to drop, so the plan was failing. • The next step was free coinage; a law was required to turn all silver into silver dollars. • The miners pushed for a 16: 1 ratio - 16 ounces of silver to 1 ounce of gold
The Granger Movement 1866 -1876 • Patrons of Husbandry (AKA the “Grange”) • Began as a social & educational service but turned into a political force (Recession of 1873) • Grangers wanted regulation of railroads & warehouse rates, more greenbacks in circulation, & cooperatives. • Cooperative: farmers pooled their crops & held them in order to force up prices. • Co-ops also negotiated better rates for farmers.
• On a state level, the Granger movement was successful in getting some states to pass laws regulating the railroads. • The railroads fought back (plenty of $) & got the laws ruled unconstitutional by SCOTUS. • The co-ops were not very successful b/c they were too small & Eastern businesses refused to do business with them. • By the 1870 s, the National Grange movement was finished as farmers moved on to other organizations. • The next big group was the Farmers’ Alliance.
The Farmers’ Alliance • Began in Texas in 1877 • Very popular organization (1. 5 to 3 million members at its peak. ) • United farmers from all parts of the country. • Somewhat successful but failed in its attempt to create co-ops (exchanges) & pass laws regulating RR rates & practices. • Split into groups when there was a power struggle inside the Alliance.
The Populist Party • AKA the People’s Party • Became a new political party when the Demos & Repubs would not support the farmers. • There were many Demo & Repub. Candidates that ran on the Populist platform, but once elected, they didn’t follow thru. • Eventually the Populist Party would become very popular by supporting issues that related to the farmers & miners.
• PLATFORM: - Government ownership of RR’s & the telephone - & telegraph networks Federal income tax Government loans to farmers (crop is security) Eight hour work day Restrictions on immigration Free & unlimited coinage of gold & silver 16: 1 Government regulation to protect citizens against greedy & irresponsible private interests. Allow workers to strike
• The populist created a “multi-sectional institution of reform” • Many of the members felt betrayed by the establishment (government & industrial giants. ) • The populists took clear positions on controversial issues while the Democrats and Republicans still ducked issues. • The only setbacks for the Populist party were segregation and prejudice.
• They lost votes in the South because large numbers of white supporters refused to vote for candidates who openly appealed for black support. • The Populist party won state and local levels but lost in the presidential race of 1892.
The Panic of 1893 • The Depression of 1893 occurred as a result of economic conditions that began in the 1870’s. - Long period of deflation - The silver question was still being debated - Bankruptcy of the Philadelphia & Reading Railroads
• President Cleveland believed the depression was caused by the uncertainty people had about their money. – Wall Street markets crashed – People withdrew their money from banks demanding gold (bank failures) – Cleveland insisted the government should stop coining silver and return to the single gold standard. – Congress repealed the Sherman Silver Purchase Act in 1893 (stopped coining silver) – 4. 6 million workers were unemployed (18% of the workforce. ) – 690, 000 workers went on strike in 1894 alone.
• So many people were out of work that they took to wandering the country side looking for any possible work. - These men became known as “tramps. ” - People thought they were dangerous or anarchists who wanted to overthrow the government. - All they wanted was work. • Some men organized themselves into protest marches seeking government relief; this only increased the fear and distrust many people had of the tramps.
GOLD VS. SILVER (Bi-metalism) Goldbugs & Silverites
• The depression of 1894 caused problems with the U. S. Treasury. • People were cashing in bonds & silver money for gold. • Caused government reserves of gold to fall dramatically. • Congress repealed the Sherman Silver Act. • This caused a split in the Democratic party: – Goldbugs thought U. S. currency should be based on gold. – Silverites: unlimited coinage of silver.
William Jennings Bryan • William Jennings Bryan was a young politician from Nebraska who quickly made a name for himself in national politics. – He had deep faith in democracy. – He believed that legislators should represent the ideas of the people who elected them. – He was one of the greatest political orators in American history.
• At the Democratic National Convention, the Democrats weren’t sure what to do about the silver issue. – silver/money question is at the top of the list. – 3 speakers in favor of gold standard. – 3 speakers in favor free coinage of silver and gold. – Final speaker was William Jennings Bryan; he gives his famous “Cross of Gold” speech.
• “The Cross of Gold” Speech – Full of Biblical/religious references – Silver supporters were like the Crusaders who freed Jerusalem from the Muslims. – The country wouldn’t exist without the nation’s farmers. – Silver forces were like Jesus Christ who would be crucified by the gold standard believers. • The crowd at the convention LOVED the speech. -wild applause & cheers of approval • Free and unlimited coinage of both gold and silver became part of the platform. • AND…Bryan won the nomination for president of the Democratic party
Election of 1896 • Finally an election with some controversy. • Business and manufacturing supported Mc. Kinley • Many people crossed party lines • They felt the gold standard was more secure than silver inflation. • They believed their business would collapse and their wealth vanish if Bryan were elected,
William Mc. Kinley 25 th President 1896 -1900 1 st Term 1900 -1901 died in office
• Republicans saw Mc. Kinley as a “savior” like Washington or Lincoln, but he was just an ordinary guy. • His greatest asset was the solid support of business and industry which contributed heavily to his campaign. *****During this time it was still legal to give unlimited amounts of money to political campaigns. • Bryan waged an energetic campaign crisscrossing the nation giving speeches & meeting the people.
• Many things went against Bryan though. • Many newspapers hurt his campaign by misquoting him and suggesting he may be insane (many newspapers were owned by wealthy Republicans. ) • The Democrats had very little campaign money since they appealed mostly to poor farmers and workers. • Employers told their employees they would lose their jobs if they supported Bryan. • Rich Democrats had crossed party lines to support Mc. Kinley.
The Front Porch Campaign • Mc. Kinley stayed at home in Ohio. • People went to see him at home & newspapers called this the “Front Porch Campaign. ” • He let the national Republican Party do the campaigning for him. – Mc. Kinley would end the depression & workers would have a “full dinner pail” if they supported him. – This appealed to urban workers more than the silver issue. – Republicans were more sympathetic to urban issues.
• The 1896 election saw many shifts. – Northern, industrial Democrats voted for Mc. Kinley (this is where most of the population was centered. ) – South and West went for Bryan (farmers & miners) – Mountain states went for Bryan since that’s where the silver was. – Mc. Kinley won in the close states – This election was a Republican mandate. – Mc. Kinley won with 51% of the popular vote
END RESULTS • Republicans had outspent the Democrats. • Organized political efforts paid off for the Republicans. • End of the post-Civil War era. • Farmers became more appreciated. • Gold vs. silver would longer be an important issue (Klondike gold rush of 1898. ) • End of the Populist Party
• The depression ended during Mc. Kinley’s 1 st term • The U. S. adopted the gold-based currency system in 1900. • Populism may have died out, but many of their ideas would come back to life during the Progressive Era.
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