Farmers and the Populist Movement 5.3 Notes

Farmers in Debt New technology – machinery expensive New technology – machinery expensive High railroad shipping fees High railroad shipping fees Loans taken out to pay for supplies Loans taken out to pay for supplies Crop prices fall – must harvest more Crop prices fall – must harvest more Bonanza farms Bonanza farms Enormous single-crop farms of 15,000-50,000 acres Enormous single-crop farms of 15,000-50,000 acres Invested in by RR companies Invested in by RR companies Buy more land – go further into debt Buy more land – go further into debt

Economic Distress Civil War era money taken out of circulation Civil War era money taken out of circulation $500 million issued in paper money – greenbacks $500 million issued in paper money – greenbacks Could not be exchanged for gold/silver money Could not be exchanged for gold/silver money Worth less than “hard money” Worth less than “hard money” Value of regular dollar increased Value of regular dollar increased Farmers paying back loans with money worth more than amount borrowed Farmers paying back loans with money worth more than amount borrowed Two strikes b/c price of crops falling too Two strikes b/c price of crops falling too

Railroad Problems No RR competition No RR competition Prices not driven by Prices not driven by competing companies competing companies Secret agreements with “middlemen” Secret agreements with “middlemen” Storage prices, etc. Storage prices, etc. Affects overall market prices for crops Affects overall market prices for crops Farmers start to buy on credit Farmers start to buy on credit High interest rates High interest rates Prices higher when bought on credit Prices higher when bought on credit

Farmers’ Alliances Oliver Hudson Kelley – Patrons of Husbandry Oliver Hudson Kelley – Patrons of Husbandry The “Grange” The “Grange” Social outlet and educational forum for isolated farm families Social outlet and educational forum for isolated farm families Began to fight RR Began to fight RR Taught how to organize, sponsor state legislation Taught how to organize, sponsor state legislation Farmers’ Alliances Farmers’ Alliances 4 million members 4 million members Educate farmers Educate farmers

Populism Farmers needed political power Farmers needed political power to create change to create change Populism or “People’s Party” Populism or “People’s Party” Movement of the people Movement of the people Attractive to farmers and laborers Attractive to farmers and laborers Platform of reform Platform of reform Increase in $ supply – create rise Increase in $ supply – create rise in prices in prices Graduated income tax Graduated income tax Federal loan program Federal loan program Election of US senators by popular Election of US senators by popular vote vote Single terms for Pres and VP Single terms for Pres and VP 8 hour workday 8 hour workday Restrictions on immigration Restrictions on immigration

Panic of 1893 Numerous RR companies went bankrupt Numerous RR companies went bankrupt Gov’t gold supply worn thin Gov’t gold supply worn thin People trading paper $ for gold People trading paper $ for gold Stock prices fell Stock prices fell Silver price fell Silver price fell 15,000 businesses, 500 banks collapsed 15,000 businesses, 500 banks collapsed Decreased investments Decreased investments Consumer purchases, prices, wages fell Consumer purchases, prices, wages fell 1/5 of work force unemployed 1/5 of work force unemployed

Silver or Gold? Biggest issue = gold or silver for Biggest issue = gold or silver for monetary system monetary system Silverites Silverites Favored bimetallism – gold or silver in exchange for currency Favored bimetallism – gold or silver in exchange for currency Silver more available than gold Silver more available than gold Would mean more money in circulation to stimulate US economy Would mean more money in circulation to stimulate US economy Goldbugs Goldbugs Favored gold standard – backing dollars with gold only Favored gold standard – backing dollars with gold only

William Jennings Bryan 1896 Democratic Presidential nominee 1896 Democratic Presidential nominee Editor of Omaha World- Herald, NE congressman Editor of Omaha World- Herald, NE congressman Favored combined gold and silver standard Favored combined gold and silver standard “Cross of Gold” speech “Cross of Gold” speech Populists happy but frustrated at giving up Populists happy but frustrated at giving up their identity their identity Lost to William McKinley Lost to William McKinley