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

2. 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

3. 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

4. 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

5. 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

7. 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

8. 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

9. Populism

10. 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

11. 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

12. 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

13. 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

14. 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.