1. Goal 4.03: Financial Difficulties facing the American farmer/Rise & Decline of Populism Goal 4.04: Innovations in Agricultural Technology/Business Practices Chapter 12 – pages 401-407 Farming and Populism

2. New Farming Technology Windmill Steel plow Barbed Wire Mechanical reaper Thresher Technology allowed Midwest to change from being “Great American Desert” to the “Breadbasket of America.”

3. Problems Faced by Farmers Low prices for sold crops Decrease in the value of money Owe money on farming equipment (debt) High shipping costs/RR overcharge

4. Problems Faced by Farmers Farmers depended on RR to ship their products east (wheat/corn/beef) Railroads would charge higher prices to western farmers than eastern farmers YearPrice per ton per mile 1891$1.22 YearPrice per ton per mile 1891$.80 Group VIII: Midwest Group II: East

5. Problems Faced by Farmers Railroad companies would give rebates (secret discounts) to farmers in eastern regions Even if it looked like farmers from different regions were being charged the same amount on paper, eastern farmers were getting money back and therefore paying less!

6. Farmers Unite The Grange, organized 1867 Grows out of farmer’s discontent Prices low for crops, high cost of loans → farmers lose their farms to foreclosure Purpose of the Grange: social outlet & farmer education Wanted states/federal govt to control RR. Why? To lower prices!

7. "Which Will Win? The Farmer or the Railroad Monster?”

8. Victories for the Grange Munn vs. Illinois, 1887 Supreme Court ruled that states can regulate the use of private property (like railroads) when it is used for public interest Interstate Commerce Act, 1887 (Prez Grover Cleveland) Required railroads to publish their rates, outlawed too-high rates and secret rebates, price discrimination illegal BUT DID NOT OUTLAW: a few people owning supposedly competing railroads – so RR companies will still fix high rates

9. Setbacks for the Grange Wabash vs. Illinois, 1886 Overturned Munn v. Illinois Severely limited the rights of states to regulate RR!

10. Transformation of the Grange Alliances for farmers National Farmers’ Alliance: White western Farmers Colored Farmers’ Alliance: African-American farmers Southern Farmers’ Alliance: White southern farmers Delegates of the different farmers’ alliances meet and form the “People’s Party” “People’s Party” becomes the Populist Party

12. Populist Party Meets for the first time in Omaha, Nebraska Creates Omaha Platform Government ownership of railroads Increase the money supply via bimetallism Income tax Election of US Senators by popular vote Immigration restrictions Appealed to farmers & labors

14. Money Problems Greenbacks Printed during the Civil War, not backed up by either gold or silver, essentially worthless paper Gold Standard Backing money with only gold Idea supported by Republicans, bankers/merchants, and the Eastern states Bimetallism Using BOTH gold and silver to back paper currency or checks Idea supported by Democrats, farmers, laborers and southern/western states – increases cash available

16. Decline of the Populist Party Election of 1896 Populists back Democrat nominee William Jennings Bryan Gives “Cross of Gold Speech” Spoke against the Gold Standard McKinley becomes president of 1896 (more $) Populist Party declined after the election of 1899 Legacy of the Populist Party? Less powerful could organize politically and cause change