Farmers and the Populist Movement

Problems farmers faced in the late 1800s? 1) Deflation Due to overproduction – prices plummeted * Bad news for farmers because they received less money for their crops - The price of wheat fell from $2.00 a bushel in 1867 to $0.68 a bushel in 1887.

Problems farmers faced in the late 1800s? 2) Debt - Mortgage Crisis - * Farmers mortgaged their farms so they could buy more land in attempt to break even. * Banks foreclose on farms who could not make loan payment. 3) Railroads - Railroad companies had a monopoly & were charging high rates(price gouging) for transportation and storage. - Sometimes it cost as much to ship a bushel of grain as farmers received for it. Farmers had to ship their products from the west to markets in the east where most people lived

What was the response of farmers? Farmers began to work together to support one another Grange formed in 1867 (formally known as the Patrons of Husbandry (Oliver Hudson Kelley) * This organization and others like it provided farmers with way to unite/voice their opinion and respond to social and political problems.

The Grange Passage of Granger Laws. State laws in the Midwest, West & Southeast that set maximum railroad rates in those states. Railroad companies fought these laws in court. They argued it was unconstitutional for any government to regulate business enterprises. In Munn v. Illinois (1877) the United States Supreme Court ruled that granger laws were in fact constitutional further establishing the right of the government to regulate commerce.

“Gold Bugs” Bankers and Businessmen. Wanted to keep U.S. on the gold standard which would keep the value of the dollar high. Loans would be repaid in stable money. This would lead to less money in circulation and deflation (falling prices). Fewer people would have money and the wealth of those that did (bankers and businessmen) would increase.

“Silverites” Farmers and Laborers. Bimetallism – silver and gold coinage. This would decrease the value of the dollar and prices for farm goods would rise. Farmers profits would increase and they could pay back loans with dollars that were actually equal in value to the dollars they had originally borrowed before greenbacks were taken out of circulation. Wealth would be more evenly distributed across all tiers of society.

Populist Party The Populist Party was born in 1892 (Movement of the people) AKA = People’s Party Demand reforms to lift the burden of debt from farmers in the W and SE & industrial laborers in the Mid W and NE (common people) and to give people a greater voice in their government. Started winning state and local elections and soon started running for national offices - congress

Populist Reforms - What did they want? 1. Increase in money supply = rise in prices (Inflation) 2. Graduated Income tax (Tax higher incomes at higher rates) 3. Election of U.S. Senators by popular vote 4. Single term for President and Vice-President 5. 8 hour work day 6. Restrictions on immigration 7. Federal government regulation of railroads

Why does Populism end? Election of 1896 **William Jennings Bryan (Democrat) - Considered the patron saint of lost causes due to the fact that he let his beliefs, not politics, guide his actions. Won the parties nomination for president in 1896. Bryan’s stance on the gold coinage issue led the Populist Party to nominate him as their candidate as well. **William McKinley (Republican) – Civil War Veteran. Supporter of the gold standard. Popular in DC. Had millions to fund his campaign. Bryan lost the voters in the East, industrial Mid-West and the growing middle class to William McKinley. William jennings bryan- Former Nebraska Congressman and editor of the Omaha World-Herald newspaper. William McKinley - Former Congressman and Governor of Ohio. Civil War veteran. Republican nominee for president in 1896. Supporter of the gold standard. Very popular within the Republican Party and in his home state of Ohio. Also popular in Washington D.C. Had millions of dollars in his campaign fund

The 2 legacies of Populism? 1) A message that the common man could organize and have a political impact. 2) An agenda of reforms – many would be put into law in the 20th century.

Election of 1896