Download Ch.5 Sec.3

Ch.5 Sec.3
FARMERS AND THE POPULIST MOVEMENT
Farmers Unite

Late 1800s- farmers were trapped
economically
 Crop
prices were falling
 Farmers
mortgaged their farms to buy
land to produce more crops (more
debt)
 Railroad
were taking advantage of
farmers by charging excessive
shipping prices
Economic Distress

Farmers troubles were part of large economic problem
in the U.S.

Inflation


U.S. issued $500 million in paper money during the Civil
War----”Greenbacks”

Were not worth as much as “hard currency” of the same
face value

Hard Currency: coins & paper money printed in yellow ink

After war, gov. started taking greenbacks out of
circulation
Problem for farmers

Farmers paid back loans in dollars worth more than what
they borrowed

Crop prices fell: Wheat (1867)= $2------Wheat( 1887)= $0.68

Pushed gov. to put more $ back in circulation
Problems with Railroads

Paid outrageous prices to transport
grain

Lack of competition allowed prices to
rise
 Cheaper
to send grain from Chicago to
England by boat than it was to send grain
from Dakotas to Minneapolis by rail

Farmers use credit
 Mortgaged
their homes for credit to buy
seed, equipment, & supplies
 Suppliers
charged high rates of interest so
that items bought on credit cost more than
cash purchases
Farmer’s Alliances

To effectively push for reforms farmers
needed to organize

Oliver Hudson Kelley- 1867


Started the Grange—social/educational
outlet for farm families

Taught farmers how to organize against the
railroads and sponsor state legislation to
regulate railroads
Farmers’ Alliances

Educated people about low interest rates,
loans, and gov. control over railroads and
banks

Grew to more than 4 million people (south &
west)
Populist Party


Populism- movement of the people

1892 1st convention in Omaha, NB

Agenda: lift burden of debt off farmers & give people greater voice in gov.
Party Platform


Economic Reforms

Increase $ supply

Graduated income tax

Federal loan program
Gov. Reforms

Election of U.S. Senators by popular vote

Single terms for President & VP

Secret Ballot

8 hr. workday & restrictions on immigration
Panic of 1893
 1880s
farmers were overextended by loans
 Railroad
markets
 The
construction expanded faster than the
Panic
 Philadelphia
& Reading Railroad, Erie, N. Pacific, Union
Pacific, and Santa Fe Railroads all went bankrupt
 People
 Stock
prices fell drastically
 15,000
3
traded paper money for gold
businesses and 500 banks closed
million lost their jobs
Silver OR Gold?

Political Divide
 Business
owners & bankers (Northeast)—Republicans
 Farmers/laborers (South & West)--- Democrats

Campaign Issue
 Which
metal would be used for money (Silver or Gold? )
1. Silverites favoring bimetallism—gov. gives gold/silver in exchange for
paper currency

2.
Gold Bugs (President Cleveland) favored gold standard---back dollars
with gold only


Hoped to stimulate economy by allowing more $ in circulation
More stable/expensive $
Important issue because it would determine if the people’s
paper $ was worthless or not
1896 Candidates

Republican- William McKinley (Ohio)

Democrat- William Jennings Bryan (Nebraska)


Campaign



ENDORSED BY THE POPULIST PARTY
Bryan

campaigned in 27 different states

No match for $$ backing McKinley
McKinley campaigned from his front porch while people
traveled the country speaking for him
Results

McKinley won approx. 7 million votes

Bryan 6.5 million votes

Electoral college made McKinley the 25th President