1. Populism

2. Populism Primarily an agrarian movement Farmers experienced hardships
Overproduction
Technology increased production
As Great Plains opened for settlement more areas were cultivated
Prices went down
Unpredictability of weather
Tariffs made farmers pay more for American made equipment

3. Farmers and Tariffs
Tariffs on imported goods discourage people from buying imports by making them more expensive
Tariffs were said to create factory jobs but raised prices for the consumer
Protected farmers against farm imports
Hurt farmers
Raised prices of manufactured goods
Kept foreigners from earning money that was used to buy their crops

4. Money Issue Money Supply-amount of money in the nation economy
Inflation-widespread rise in prices on good of all kinds
Deflation-a drop in the prices on goods
Monetary Policy- Federal government’s plan for the makeup and quantity of the nation’s money supply

5. Money
Supply
Value
Prices
Inflation up
down
Deflation

6. Bankers
Inflation (100%)
Deflation (100%)
Deposits $2500
$5000
$1250
Loans $5000
- $10,000
- $2500
Money in bank $ 5000
Utilities $500
- $1000
- $250
salaries $ 1000
- $2000
- $500
Money Remaining $0
-$3000
$3000
Farmers
Inflation (100%)
Deflation (100%)
Income $2000
$4000
$1000
Mortgage payment $1000
- $1000
New equipment cost $500
- $250
Groceries $200
- $400
- $100
Feed $100
- $200
- $50
Money Remaining $200
$1400

7. Gold Bugs
Bimetallic Standard-currency consisted of gold or silver coins or United States treasury notes that could be traded for gold or silver
1873 put on a Gold Standard- the money supply was limited by the amount of gold held by the government

8. Silverites
Free Silver- the unlimited coining of silver dollars to increase the money supply
Bland-Allison Act of Required the federal government to purchase and coin more silver
Vetoed by president Rutherford B. Hayes
Did not want to create inflation
Sherman Silver Purchase Act- increased the amount of silver the government was required to purchase every month
Required the treasury to buy silver with notes that could be redeemed with silver and gold
Repealed by the Silver Purchase Act in 1893

9. Granger movement Began in 1867- mostly social gatherings
After problems occurred became more than social gatherings
Developed stores, cooperatives, processing plants, and factories
“Granger Laws”- attempted to regulate railroad shipping and storage fees

10. Farmers’ alliance Government run storage facilities
million members
Made detailed agendas for action
Strict regulations on railroads (pushed for nationalization)
Monetary policies that would cause inflation
Made it easier to pay debts
Government agency that offered low interest loans
Government run storage facilities

11. Populist Party “ The People’s Party”
New political party consisting of farmers’ alliance, southern democrats, some labor unions, and a few small reform parties
Believed that government was run by the industrialists
The gap between the rich and the poor was growing
“Corruption dominates the ballot-box, the legislatures, the congress, and touches even the ermine of the bench [i.e., the courts]…. From the womb… of governmental injustices we breed the two great classes-tramps and millionaires”

12. Populist Party Demands Free coinage of silver
End to tariffs and the national bank
Direct election of senators
Graduated income tax- Higher income = higher taxes
Regulation of big business

13. Populist Party Had success in the South and the West Depression 1893
Won seats in state legislature and U.S. house
Won over many southern democrats
Nominated James Weaver for President in 1892
22 elect. Votes (5 states)
Depression 1893
Repeal of the Sherman Silver Purchase Act
Democrats split into two groups: Gold-bugs and Silverites

14. Election of 1896 Republicans Democrats and Populists Unite
Support Gold Standard – money supply based only on gold
Nominated William McKinley
Supported by urban workers and business leaders
Democrats and Populists Unite
Democrats Nominate William Jennings Bryan
Populists decide to support Bryan
Supported in the south and the west
Results
McKinley wins Presidency
Gold found in Alaska in 1899

15. Populist Party never wins national support and eventually fails
Ideas of the party live on and have become laws
Federal income tax
Eight-hour workday
Direct election of US senators
Abandonment of the gold standard