2 Today’s Agenda Review Distant Authority Slide Show Homework Study for Unit Test (Thursday!!!)
3 Review Describe the Gilded Age Describe the problems farmers had during the 1890s.Who were the Grangers?What is the significance of Munn v. Illinois?What is significant about the Wabash case?Describe the problems labor had during the Gilded Age.
5 Today you will be able to: Identify what a protective tariff is, who would favor it, and why?Identify differences between Bryan and McKinley Describe the difference between a debtor and creditor and analyze what each would have thought about the money supply.Explain what a “tight” and “loose” money supply is.Identify William Jennings Bryan and analyze his “Cross of Gold” speech.Explain and analyze the results of the election of 1896.
7 What happened to the US economy in 1893? Panic of 189320% unemploymentCleveland= laissez faireJacob S. Coxeybusinessman led march of 500 people from Ohio to WashingtonWanted to call attention to high rate of unemploymentArrested for walking of grassWhat does silver have to do with the economy?
9 Describe America’s financial policy in the 1890s. Tight money policyU.S.’s money supply based on GoldVery limited (tight) supplyHurt farmers mostFood prices had droppedMortgage payments remained the same
10 What did the farmers want? Bi-metalism & a loose money policyDollars backed by gold and silverWould increase supply of moneyMake money cheaperAllow them to pay off their debts
11 Which money policy did eastern bankers favor? Tight or Gold only money policyWhy?Less money in supply means that its worth more (has more buying power)Farmers owed them a “fixed” amount of cash (ex. $1000)$1000 gets them more if less of it is available
12 What was Grover Cleveland’s attitude towards the economy?
13 What other issue affected farmers and laborers? Tariffs
14 What is a tariff? A tax on imported goods. Imported goods= products made in other countries
15 What kinds of tariffs are there? Protectiveintended to keep identified foreign products out of our country so that Americans will “Buy American!”Revenuedesigned to raise money for the countrycalculated to be small enough so as not to curtail trade
16 Revenue Tariff Example: The United States imposes a five percent tariff on foreign wine. Pre tariff price: $20.00 bottleAfter tariff price: $21.00 bottleResult: Demand will probably not drop much for the product and the imposing country will raise funds.
17 An artificial increase in foreign prices Protective Tariff ExampleAn artificial increase in foreign pricesForeign Steel Cost $100 per tonWith 30% Tariff $130 per tonDomestic Steel Cost $120 per tonUS SalesForeign Sales
18 How does a tariff work?Farmers can buy an American tractor for $100 and English tractor for $130A steel mill in England makes tractors to sell for $90 eachThe US Gov. places a $40 fee (tariff) on each English tractorA fledgling American factory makes tractors to sell for $100 eachTractors are transported to America.
19 How will foreign nations react to a protective tariff? retaliate by imposing tariffs on our exports.IE. Farm products
20 Owners of Protected Industries Who is hurt and helped by a protective tariff?Hurt HelpedConsumersOwners of Protected IndustriesExportersWorkers in Protected Industries
21 How did protective tariffs hurt farmers? Made farm products more expensive overseasCut their sales in other nations
24 Describe the Election of 1896. Big Issues:Bi-metalismTariffCandidatesWilliam Jennings BryanGreat oratorSupported by Democrats and Populists, farmersTireless campaignerWilliam McKinleyConservativeA friend to big businessNever left front porch
25 What does Bryan mean by a “cross of gold?” Burn down your cites and leave our farms, and your cities will spring up again as if by magic. But destroy our farms and the grass will grow in the streets of every city in the country…you shall not crucify mankind upon a cross of gold.”Gold only money policy is crushing (crucifying) the farmers