Farmers and Populism Goal 4.3

Farmer’s Problem’s Farm prices drop due to new technology. Farming surplus = low prices = less profit. Farmers were unable to pay bills b/c they were making less $. Farmers were dependant on railroads for shipping goods. Railroads set high shipping fees. Wanted cheaper money; back by silver.

Railroad Abuses Construction graft – The railroad companies were given ½ mile radius of land around the area where the tracks would be laid. They would then turn around a sell that land at a price that was above market value. Railroads also controlled the rates that they charged for shipping. These were not yet regulated by the government.

Railroad Abuses con’t Railroads offered rebates to customers who shipped by large volume like oil companies. Farmers were not offered this discount and ended up paying higher prices. Also, RxR charged more if your shipment was close by or short haul.

The Grange An organization for farmers that was originally social and educational. Founded by Oliver H. Kelly Grange had 1.5 million members. Wanted the state gov’t to regulate railroad rates. Wanted more $ in circulation. Also formed cooperatives – pool farmers crops and hold them off the market to push up demand. If demand is up, so is price. Also felt that they could negotiate a better shipping rate.

Populism Granger’s become a political party called the Populists – farmers. They are a reform based party who want to see things changed that would benfit the farmer. Omaha Platform – nominated James B. Weaver for President. Platform is the ideas that a person will campaign on.

Omaha Platform Increased $ supply - wanted the unlimited coinage of silver at a ratio of 16oz silver to 1 oz of gold. Federal ownership of RxR. Use of secret ballots. Graduated Income tax – the more you make, the more you pay. 8 hour workday. Limits on immigration

Free Silver Crusade Panic US had worst depression to date. RxR had a hard time paying their loans. Stock Market crashed and banks went under. 4.6 million were unemployed. People who held government bonds began cashing in those bonds for gold. The gold was draining out of the economy. People called for $ to be backed by gold and silver. This would create a larger money supply. Democratic party splits into 2: Goldbugs: people who wanted currency based on gold; silverites – people who wanted unlimited coinage of silver.

Bryan and the End of Populism Election 1896 – Republicans nominate William McKinley. Democrats and Populist nominated William Jennings Bryan. Bryan was a strong supporter of silver. He transformed the campaign of silver into a crusade. He delivered an electrifying speech called The Cross of Gold. He traveled across the nation given energetic speeches. McKinley did not travel and campaign. He launched what he called the front porch campaign. He promised people a “full dinner pail”. This appealed to immigrants and those who worked in industry.

Results of Election William McKinley won. When he took office, the depression was over and more gold had been discovered. The money supply increased w/o using silver. Credit was easier to obtain and farmers were not distressed.1900 US passed a gold standard. Populism died. With the silver cause gone, Populist had nothing to fight for.