13.3 - Farmers and the Populist Movement Farmers unite to address their economic problems, giving rise to the Populist movement.

Economic Distress Farmers buy more land to grow more crops to pay off debts After Civil War, government takes greenbacks out of circulation Debtors have to pay loans in dollars worth more than those borrowed

Economic Distress Prices of crops fall dramatically 1870s, debtors push government to put more money in circulation 1878 Bland-Allison Act—money supply increase not enough for farmers

Farmers and Railroads Railroads exploited farmers, charging exuberant fees and high rates: Lack of transportation alternatives Limited competition among rail Farmers lend on credit at higher rates & mortgage their farm

The Grange Movement (1867) Farmer’s advocacy group Social organization turned political activists Elevated the status of the American farmer

The Farmer’s Alliance (1870s) End the crop lien system (sharecroppers) Regulation of rail industry Relaxation of money supply

Economic Panic of 1893 Causes: Railroads go bankrupt (construction outpaced demand) -Philadelphia & Reading Railroad Gvt.’s limited gold supply / Bank failures Estimated 20% unemployment

Economic Panic of 1893 Results: Populist March on Washington Labor strikes Sectionalism “Silverites” vs. “Gold Bugs” Bimetallism vs. Gold Standard

Coxey’s Army

The Populist Party Platform Economic: increase money supply, graduated income tax, federal loans Political: Senate elected by popular vote; secret ballot; 8-hour day 1892, Populist candidates elected at different levels of government - Democratic Party eventually adopts platform

Silver or Gold? Political divisions also regional: - Republicans: Northeast business owners, bankers - Democrats: Southern, Western farmers, laborers

Silver or Gold? Bimetallism—system using both silver and gold to back currency Gold standard—backing currency with gold only Silverites: bimetalism would create more money, stimulate economy Gold bugs: gold only would create more stable, if expensive currency

Election of 1896 Republicans nominate Ohio governor and former Union general, William McKinley Front Porch Campaign Mark Hanna Democrats nominate former Nebraska congressman, William Jennings Bryan “Cross of Gold” speech Populist support Issues: Money supply & economic policy

http://www. americanrhetoric. com/speeches/williamjenningsbryan1896dnc http://www.americanrhetoric.com/speeches/williamjenningsbryan1896dnc.htm

The End of Populism McKinley gets East, industrial Midwest; Bryan South, farm Midwest McKinley elected president; Populism collapses; leaves legacy: - the powerless can organize, have political impact - agenda of reforms enacted in 20th century