Describe the causes and effects of the financial difficulties that plagued the American farmer and trace the rise and decline of populism Week 4 Day 3

Macro Concepts Innovation-the method of advancing and improving the way of doing something. Conflict-problem or issue that is controversial and can cause problems without compromise. Micro Concepts Inflation-rising prices of resources due to scarcity. Deflation-falling prices of resources due to oversupply. Supply and demand-amount and desire for a resource. Populism-political movement led and controlled by citizens [mostly late 1800s farmers] to change the government.

The Grange  A united group of American farmers who came together to fight for their rights and defend their economic interests.  Farmers were being exploited by railroads.  Railroads were charging huge fees to transport their crops and animals.  The Grange wanted the U.S. Government to step in regulate the railroads.

Farmers’ Alliances Several farmers groups came together in different regions: Southern Alliance-Farmers from the Southern part of the U.S. [tobacco, hogs and cotton] Southern Alliance-Farmers from the Southern part of the U.S. [tobacco, hogs and cotton] Colored farmers-Mostly sharecroppers and tenant farmers who grew cotton, tobacco and corn.

Money Policy Money Policy  To strengthen the U.S. economy several money policies were attempted.  Greenbacks-During the U.S. Civil War and the lack of gold the Union [and Confederacy] issued paper currency that promised to pay the face value [$5, $10, $50, etc] “to the bearer on demand.” The government was asking people to trust it.  Gold Standard-This policy forced the U.S. government to issue only the amount of paper money the U.S. had in gold.  Bimetallism-This policy allowed the U.S. government to issue paper based on gold and silver reserves.

Railroad Court Cases Railroad Court Cases  Two landmark U.S. Supreme Court cases were influenced by the pressure exerted on the U.S. Government by the Grange.  Wabash vs. Illinois in 1886 ruled that individual states could not interfere with interstate commerce such as railroads. The Interstate Commerce Act was passed soon after this decision in order to control trade between states.  Munn vs. Illinois in 1887 ruled that states could regulate businesses within their borders.

Omaha Platform Omaha Platform  The set of ideas [platform] adopted by the Populist party.  The main objective of the party was for the U.S. government to own all the railroads and telegraphs.

William Jennings Bryan William Jennings Bryan In 1896 at the Democratic National Convention William Jennings Bryan was a candidate for the presidential nomination. He represented the state of Nebraska that had many farmers. In a famous speech criticizing the gold standard Bryan believed that bimetallism [gold and silver supported currency] would make more money available for cash poor farmers. Recording of speech Text of speech

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