1. Politics of the Gilded Age
Gold v. Silver and the Populism Movement

2. Gilded Age?
The Gilded Age is the name given to describe America during the 1870’s through the 1890’s.
Named after a fictional novel by Mark Twain and Charles Dudley Warner.
The Gilded Age is characterized by extreme divide between rich and poor and a vast sea of political corruption. However, it is also a time which led to political reform.

3. Gold v. Silver
The Gold Standard: when the value of a currency is fixed upon a weight of gold.
This meant 1 ounce of gold was worth “x” amount of dollars.
This created a “hard money” system where there was only enough dollars for the amount of gold the government had.

4. Gold v. Silver
Since there was only so much money to go around, many citizens did not have very much.
These citizens, usually laborers and farmers, wanted more money in circulation so they could have access to more.
They wanted silver to also be brought into the equation so we would base our currency off of gold and silver and making room for more money. This was called “bimetallism.”

5. Gold v. Silver Marker Simulation
1 expo dry erase marker is worth $10 dollars
Since we only have 7 markers, we can only circulate $70 in our classroom economy.
Some of you don’t make as much money as others but you cannot really get more because there is only a small amount.
Those of you who have less, decide that we should base out money off of both markers and paper clips, another precious metal.
We happen to have a bunch of paper clips and while they aren’t worth $10 each, they are still about $4 each.
If we valued our currency based on the 50 paper clips we have, we could add $200 into out economy. However, there are consequences.

6. Gold v. Silver
The advantage of silver was that people could have more money however this would cause inflation and make every dollar worth less.
Inflation= decrease in value of money and an increase in prices because goods generally do not lose value.
Gold would cause the opposite, deflation.
Deflation= increase in value of money and decreased prices.

7. Gold v. Silver
So this was an issue debated throughout the late 19th century but why? Who brought it up?

8. Populism
Farmers saw themselves trapped in a vicious economic cycle in the late 19th century.
Crop prices were falling. Farmers in turn mortgaged their farms to buy more land in order to produce more to break even.
Banks were foreclosing on many farms because farmers were unable to break even.
This led farmers to unite to attempt political change.

9. Populism
First, they joined with each other in smaller farmer’s alliances. They advocated for the free coinage of silver and harsher laws against the railroads who were charging outrageous costs to transport the farmers crops.
Oliver Kelly started a farming organization which became known as the Grange.

10. Populism
The Grange educated farmers how to organize, set up farmers’ cooperatives and sponsor state legislation to regulate the railroads.
Eventually, these farmers alliances realized that they needed to build up political power if they were ever going to make reforms.
Thus, the Populist Party was created.

11. Populism Populism: the movement of the people.
Populist Party was formed in 1892 and sought to make numerous reforms:
Increase money supply which would raise prices of crops(Free Silver)
Graduated income tax (rich pay more, poor pay less)
Federal loan program (Federal government gives loans instead of private banks.)
Direct election of US Senators (at this time they are elected by state legislatures)
Single 4 year term for President
Ending voter fraud
8 hour work day
Restrictions on immigration

12. Populism
These reforms at the time were considered radical. Not “normal”
Populists did well for a third party in their first presidential election their candidate received nearly 10% of the vote.
However, over time their focus set in on one issue: free silver

13. Populism
Panic of 1893: Caused by over extension of railroads. Railroads expanded faster than they could pay for it causing huge debt issues. In response people exchanged their paper money for gold causing the US gold reserves to drop. This only deepened the struggle for “Free Silver” and the Populists led the charge.

14. Panic of 1893

15. Populism (p. 238)
By the 1896 election, the issue of Gold v. Silver took center stage.
Democrats were supported by the farmers and laborers of the South and West while Republicans were supported by the bankers and businessmen of the industrialized Northeast.
Republicans tended to be “Gold bugs” or those who backed keeping the gold standard and Democrats tended to be “free silverites” who favored bimetalism.

16. Populism
Populists had a choice, back the Democratic candidate and Free silverite William Jennings Bryan or run their own candidate to keep their political identity.
William Jennings Bryan gave the “Cross of Gold” speech at the Democratic Convention and won over many Populists.

17. Cross of Gold (don’t write)
William Jennings Bryan
“we will answer your demand for a gold standard by saying to them: You shall not press down upon the brow of labor this crown of thorns, you shall not crucify mankind upon a cross of gold.”

18. Election of 1896

19. Populism
In the end, the Republican candidate William McKinley won the election and this essentially destroyed the Populist party.
Their legacy however would remain: the downtrodden citizens could organize and make an impact and many of their reforms would be enacted in the 20th century.

20. Political Problems of Gilded Age
Civil Service Reform-ended patronage
Patronage: giving jobs to people who helped get officials elected.
Tariffs
Democrats-Anti-Tariff/Republicans- Pro-Tariff
Bimetalism
Corruption
Scandals- Crédit Mobilier
Political Machines

21. Political Machines
An organized group that controlled activities of a political party in a city.
Exchanged services for votes and money
Political bosses: in charge of political machines and decided who got jobs and money
Immigrants: Often given things and in turn would be loyal to the party.
Voting fraud and kickbacks

22. Tomorrow (do not write this)
TEST over everything covered since the CDV project.
Make sure to review the table on p. 238 (hint-hint) and cross off the last thing on the review.
Review first thing tomorrow, will only be on questions asked by you.
Turn in Notebook #2 and Vocabulary-Must be in order and have title on each paper or it will not be graded and you will lose points.