The Peoples’ Party gave rise to “Populism” in 1892. They held their convention in Omaha, Nebraska with a party platform centered around farmers and workers. The Panic of 1893 Farmers in the west had over- extended debt, railroads expanded faster than demand, several going bankrupt in 1893. The Federal Government’s gold supply was running out because they were buying silver instead of gold. The panic struck Wall Street and by the end of 1893, 15,000 businesses and 500 banks collapsed.
Gold BugsSilverites Who Were They?Bankers and Businessmen- Farmers and Laborers What Did They Want? - Gold Standard - Less money in circulation - Bimetallism - More money in circulation Why Did They Want That? Loans would be repaid in stable money Products would be sold at a higher price Then What… DEFLATION: - prices fall - value of money increases - fewer people have money INFLATION: -Prices rise - value of money decreases - more people have money
Gold Standard VS Bimetallism “Silverites” favored backing our currency with both gold and silver because it would stimulate the economy. “Gold Bugs” felt that retaining a currency backed only by gold would produce a more stable economy. Presidential Election 1896 Republicans (gold standard) nominate William McKinley. Democrats and Populists (silverites) nominate William Jennings Bryan. With the win by McKinley, Populism collapsed.