“All that glitters is gold” --Smash Mouth FARMERS AND populism “All that glitters is gold” --Smash Mouth

The Plight of farmers To pay for the Civil War, increased money supply . This led to inflation – a decline in the value of money As the paper money lost its value, the prices of crops soared  farmers happy

The government pulled greenbacks out of circulation and stopped making silver into coins Decrease in money = deflation – increase in the value of money Many farmers had borrowed money causing debt with increasing interest at a time when prices for crops was falling due to deflation With the opening of the West, more farmers were growing crops which led to the drop in prices for crops due to the increase in supply  farmers not happy

Farmers were being taken advantage of and loosing money Railroads were giving large rebates to big business and passing the cost onto the farmers Rebate – a partial refund to lower the rate of a good or commodity Farmers were being taken advantage of and loosing money

Farmers unite Outrageous railroad charges to haul crops along with declining food prices and rising debt led farmers to unite Grange (1867) – organization of farmers that banded together for political and economic benefits and interests Helped establish local and state laws to regulate and control the railroads

Farmers' Alliances (1877) – cooperatives which combined goods and sold them together to give more power to farmers Agenda included government control of transportation and reforms of currency, land ownership, and income tax policies

Railroad regulation Wabash v. Illinois (1886) –states have no authority to regulate railroads Government financially support railroads (subsidies) Interstate Commerce Act (1887) – created federal agency designed to address railroad abuse and discrimination Required the shipping rates be reasonable and public Rebates and price discrimination made illegal

Populism

populism Movement created to increase the political power and influence of farmers and urban workers People's (Populist) Party (1892) – political party formed to address and voice the concerns of farmers and laborers

Populist platform Increase in the money supply Allow banks to give more loans to farmers at a cheaper interest rate Graduated Income Tax Tax on how much you get paid so wealthy pay more 8 hour work day Low pay, long hours, dangerous work conditions

Money crisis Panic of 1893 – the worst economic depression in America thus far Led to a crash on Wall Street and bank closures  Two views on how to back the monetary system: Gold Standard – paper money would be backed only by gold Expensive, but more stable  supported by bankers and businessmen of the eastern elite Bimetallism – paper money would be backed by gold and silver More currency with less value  supported by farmers

Election of 1896 How to back the monetary system was at the forefront of election Republicans and eastern elites endorsed William McKinley  Gold Standard Populists and Democrats both endorsed William Jennings  Bimetalism Gold Standard and McKinley won

Populism – success or failure? Although Populism didn’t achieve its goals, the movement didn’t vanish but transformed into an urban movement in the 20th century called Progressivism.