11-2 Populism

What is Populism? Movement to increase farmers’ political power and work for legislation in their interest

Why did farmers support Populism? New technology = more crops = lower prices High tariffs increased costs of manufactured goods (stuff they wanted to buy) and made it hard to sell their crops overseas Banks charged high interest on loans Railroads charged high shipping rates

What concerns did farmers have about the money supply? Inflation and deflation due to printing - and then no longer printing – Greenbacks (paper currency in Civil War)

What is the difference between inflation and deflation? Inflation – decline in the value of money (prices ) Deflation – increase in value of money (prices )

Which was worse for farmers and why? Deflation Most farmers had to borrow money for seed and other supplies to plant their crops Shortage of money meant interest rates went up, cost more to pay back loans Mortgage interest rates up too Deflation means lower prices, crops sell for less, still have to make payments with less money

What is the Grange and why did it start? Grange – nation’s first national farm agency (official name = the Patrons of Husbandry) Began for social and educational purposes

What were its goals? Grangers wanted: Regulation of railroad and warehouse rates Government to print more Greenbacks (to increase the money supply) To form Cooperatives to raise prices of crops (reduce competition)

Why did it fail? People suspicious of paper money Cooperatives were too small to affect prices Considered unions – many refused to trade with them

What were the goals of the Farmer’s Alliance? Form exchanges (large cooperatives) to drive up farm prices and give loans to farmers at low interest rates

What political party was formed from it? Populists (aka People's Party) Political reforms for farmers Want: silver and gold end of tariffs direct election of Senators

What was the Subtreasury Plan? Called for the government to set up warehouses called subtreasuries Farmers would store crops to drive up prices Government would provide low interest loans to farmers (Goal was for Democrats to adopt this plan and win farmer’s votes.)

Who did the Populists run for President in 1892 Who did the Populists run for President in 1892? What platform planks (goals) did the party have? Results of election? James B. Weaver Goals Unlimited coinage of silver Federal ownership of railroads Graduated income tax Won 4 states

What was the Panic of 1893? What were goldbugs and silverites? Worst economic crisis in US history (to this point) Started with railroad bankruptcies, Wall Street crashed, banks closed Democratic party split Goldbugs wanted US currency to be based on gold only Silverites wanted unlimited coinage of silver

Election of 1896 Silver a big issue Rep. – William McKinley Gold only Front porch campaign Dem. – William Jennings Bryan Supported silver Populists supported him so the silver vote wasn’t split Campaigned for self Seen as undignified McKinley Wins!

Wizard of OZ Lyman Frank Baum – 1900 Satire on the times

OZ = the almighty ounce of gold Yellow Brick Road = a path paved with gold bricks that led nowhere

Wizard = the President Emerald City = Washington D.C.

Wicked Witch of the East = industry Wicked Witch of the West = drought

Munchkins = slaves of banking and industrial interests

Dorothy = common man (very naïve)

Scarecrow = western farmer Cowardly Lion = William Jennings Bryan Tin man = industrial workers

Glinda the Good Witch = populist supporters

The Ruby Slippers (actually silver in the book) = Dorothy brings the silver issue to Washington D.C.