Populism- Chapter 11, Section 2 By Mr. Thomas Parsons

I. Unrest in Rural America A.Populism 1.In the 1880’s, a political movement called populism emerged. 2.Its goals were to increase the political power of farmers 3.And to work for legislation for farmers’ interests.

B.The nations money supply concerned farmers. 1.Greenbacks a.To help finance the Union in the Civil War, the government issued millions of dollars in greenbacks, or paper currency. b.These greenbacks could not be exchanged for gold or silver coins.

2.Inflation a.Greenbacks created a rapid increase in the money supply without a rapid increase in goods for sale b.When this happens inflation occurs-a decline in the value of money. c.The price of goods greatly increased.

3.Deflation a.To get inflation under control, the federal government stopped printing greenbacks and started paying off bonds. b.Congress also stopped making silver into coins. c.As a result, the country did not have a large enough money supply to meet the needs of the growing economy. d.This led to deflation-or an increase in the value of money

4.Deflations effects: a.Deflation forced most farmers to borrow money to plant their crops. b.The short supply of money caused an increase in interest rates that the farmers owed. 5.Some farmers wanted more greenbacks printed to expand money supply. 6.Others wanted the government to mint silver coins.

C.The Grange 1.The Grange was a national farm organization founded for social and educational purposes. 2.When the country experienced a recession, large numbers of farmers joined the Grange for help. 3.The Grange changed its focus to respond to the plight of farmers.

D.Cooperatives 1.Grangers put their money together and created cooperatives- marketing organizations that worked to help its members. 2.The cooperatives pooled members’ crops and held them off the market to force the prices to rise. 3.Cooperatives could negotiate better shipping rates from railroads.

E.The Grange was unable to improve the economic conditions of farmers. F.By the late 1870s, many farmers left the Grange and joined other organizations that offered to help them solve their problems.

II. The Farmers’ Alliance A.Formation 1.The Farmers’ Alliance was formed in By 1890 it had between 1.5 and 3 million members with strengths in the South and on the Great Plains.

B.Exchanges 1.The Alliance organized large cooperatives called exchanges for the purpose of forcing farm prices up and making loans to farmers at low interest rates. 2.These exchanges mostly failed. 3.Many exchanges overextended themselves by loaning too much money at low interest rates that were not repaid. 4.Wholesalers, manufacturers, railroads, and bankers discriminated against the exchanges. 5.The exchanges were too small to dramatically affect world prices for farm products.

C.The Populists 1.Members of the Kansas Alliance formed the Peoples Party, or Populists. 2.The Populist wanted to push for political reforms that would help farmers solve their problems.

D. Most Southern leaders of the Alliance opposed the People’s Party 1.The Southern Alliance wanted the Democrats to retain control of the South. 2.Charles Macune 1.Charles Macune, was a Southern Alliance leader 2.He came up with a “Subtreasury Plan.” 3.He wanted warehouses where farmers could store their crops to force prices up.

III. The Rise of Populism A.In 1890 the Farmers’ Alliance issued the Ocala Demands 1.The Ocala Demands were common goals to help farmers choose candidates in the 1890 elections. 2.The demands included a.The adoption of the subtreasury plan b.The free coinage of silver c.An end to protective tariffs and national banks d.Tighter regulation of the railroads e.Direct election of senators by voters.

B.Many pro-Alliance Democrats were elected to office in the South. C.Populists unite 1.By early 1892, Southern members of the Alliance began to realize that Democrats were not going to keep their promises to the Alliance 2.They were ready to leave the Democratic Party and joined the People’s Party.

D.The Populist Convention 1.In July 1892, the People’s Party held its first national convention where it nominated James B. Weaver to run for president. 2.The People’s Party platform called for a.Unlimited coinage of silver b.Federal ownership of railroads c.Graduated income tax, one that taxes higher earnings more heavily. d.An eight-hour workday e.Restriction of immigration f.It denounced the use of strikebreakers

E. Democrats nominated New Yorker Grover Cleveland for the 1892 presidential election. 1.Republicans re-nominated unpopular president, Benjamin Harrison. This election was the first time two former presidents ran against each other. 2.Cleveland became the only president to be elected in non- successive terms. F.Cleveland won the election.

G. The Panic of The Panic of 1893 was caused by the bankruptcy of the Philadelphia and Reading Railroads. 2.It resulted in the stock market crash of 1893 and the closing of many banks. 3.By 1894 the country was in a deep depression.

H. Gold Versus Silver 1.President Cleveland wanted to stop the flow of gold and make it the sole basis for the country’s currency (Gold Standard). 2.He had Congress repeal of the Sherman Silver Purchase Act. 3.This caused the Democratic Party to split into the goldbugs and the silverites. 4.Goldbugs believed the American currency should be based only on gold. 5.Silverites believed in coining silver in unlimited amounts was the answer to the nation’s economic crisis.

IV. The Election of 1896 A.Democrats 1.The Democrats nominated William Jennings Bryan for the presidential election of He strongly supports the unlimited silver coinage. 3.Populists also supported Bryan for president. 4.He was an outstanding public speaker.

B.Republicans 1.The Republicans nominated William McKinley of Ohio for president. 2.He promised workers a “full dinner pail.” 3.Most business leaders liked McKinley because they thought the unlimited silver coinage would ruin the country’s economy. 4.He ran a “front porch campaign” so he wouldn’t be compared to Bryan as a speaker

C.McKinley won the election of New gold strikes in Alaska and Canada’s Yukon Territory and in other parts of the world increased the money supply without needing to use silver. 2.As the silver issue died out, so did the Populist Party.

Closing Assessment 1.) Explain the Populist movement and the changes they wanted to make as well as how they planned (methods) of doing this? 2.) Why was the election of 1896 so important to the American economy, and what eventually caused this argument to come to an end?