2. APUSH Lecture 5F (covers Ch. 19) Ms. Kray Some slides taken from Susan Pojer

4. Commercial farming began to replace the independent farmer Not self-sufficient Specialized in cash crops that sold in national and international markets Farmers lost a degree of independence Forced to rely on bank loans, railroad companies, and prices elsewhere 1880s worldwide overproduction led to lower prices and increased indebtedness Who will the farmers blame?

5. Belief that railroads were using discriminatory rates to exploit farmers Long haul vs. short haul, rebates, etc. Belief that big business used high tariffs to exploit farmers Belief that a deflationary monetary policy based on gold hurt farmers Wanted free and unlimited coinage of silver coins Belief that corporations & middlemen charged exorbitant prices for fertilizers, farm machinery, & storage

6. When the banker says he's broke And the merchant’s up in smoke, They forget that it's the farmer who feeds them all. It would put them to the test If the farmer took a rest; Then they'd know that it's the farmer feeds them all.

8. Although farmers very individualistic, they did try to organize themselves National Grange of the Patrons of Husbandry, 1867 Organized by Oliver Kelley Started off as a social organization Depression of 1873 was a turning point

9. Formed marketing cooperatives to allow farmers to bypass middlemen Elected officials to state legislatures in the Midwestern states Granger Laws Passed by state legislatures to regulate the railroads unfair business practices Supreme Court ruled them unconstitutional b/c they regulated interstate commerce Munn v. Illinois (1877) Wabash v. Illinois (1886) Gift for the Grangers: The Farmer Pays for All!

10. No more laissez- faire People wanted gov’t to deal with growing social & economic problems & to curb the power of the trusts

11. Interstate Commerce Act, 1886 Passed in response to Supreme Court striking down Granger Laws Established the Interstate Commerce Commission (ICC) Attempted to regulate the RRs Largely ineffective Sherman Anti-Trust Act, 1890 Pushed by southern and western states Prohibited any “contract, combination, in form of trust or otherwise, or conspiracy in restraint of trade or commerce” Poorly enforced At first, used against labor unions instead of monopolies

12. More political & less social than Grange Ran candidates for office Controlled 8 state legislatures Had 47 reps in Congress in the 1890s Known for the significant role women played Mary E. Lease – “Raise less corn and more hell.”

13. 1889  Northern and Southern Farmers Alliances merge 1890 Ocala Demands Direction election of senators, lower tariffs, graduated income tax, new banking system regulated by the government, increased money supply Pledge support to any candidate who would support these demands Did well in 1890 mid-term elections

14. By 1892 the alliances had provided the foundations for a new political party The Populist Party was founded by James B. Weaver and Tom Watson Got almost 1 million popular votes in the Election of 1892 Won several congressional seats James B. Weaver, Presidential Candidate & James G. Field, VP

15.  System of “sub-treasuries.”  Abolition of the National Bank.  Direct election of Senators.  Gov’t regulation and ownership of RRs, telephone & telegraph companies.  Government-operated postal savings banks.  Graduated income tax  Restriction of undesirable immigration.  8-hour work day for government employees.  Abolition of the Pinkerton detective agency.  Australian secret ballot.  Re-monetization of silver.  A single term for President & Vice President.

16.  Weaver was one of few 3 rd party candidates to win electoral votes (22)  Harrison lost because of the unpopularity of the McKinley Tariff  Grover Cleveland (D) is back but he more conservative this time around!

17.  Coalition of farmers and urban workers never materialized  Urban Workers didn’t like free silver argument or their anti-immigrant stance  Union of black and white farmers in the south never materialized  Southern conservatives feared this union would undermine white supremacy Weaver speaking to a crowd

19.  Began 10 days after Cleveland took office.  Several major corporations went bankrupt Over 16,000 businesses disappearedOver 16,000 businesses disappeared Triggered a stock market crashTriggered a stock market crash Over-extended investmentsOver-extended investments  Bank failures followed causing a contraction of credit Nearly 500 banks closedNearly 500 banks closed  By 1895  unemployment reached 3 million  Americans cried out for relief but gov’t continued laissez-faire policies!!!

21.  Populist Jacob Coxey of Ohio  “Army of the Commonweal of Christ.”  Marched on Washington  “hayseed socialists!”  Demanded $500 million public works programs to create jobs  Coxey arrested for trespassing  Had little impact on public policy but signaled American’s desperation

22. Seemed to reinforce conservatives’ fears of a class war

23. Hard Money Advocates Favored currency backed by gold Supporters: Bankers, investors, established businesses Dollars backed by gold would hold their value As economy and population grew, the limited # of dollars would increase in value 1865-1895 – dollar increased in value 300% (deflation) Soft Money Advocates Favored greenbacks and unlimited coinage of silver Supporters: Debtors, farmers, start-up businesses Could pay off debts with inflated dollars Borrow $$ at lower interest rate Blamed depressions on restricted money supply The currency issue came to be invested with great symbolic significance

24. Precipitated by the Panic of 1893 History of the Silver Issue Government traditionally endorsed bimetallism Crime of ‘73 Government stopped coining silver because the market value of silver was much higher than the government mandated 16:1 ratio Silver-mine owners and farmers seeking currency inflation sought to overturn Specie Resumption Act of 1875 Withdrew last greenbacks from circulation Bland-Allison Act of 1878 Limited coinage of silver to $2-4 million a month Soft money advocates not happy, they want unlimited coinage of silver

25. Required the government to purchase 4.5 million oz. of silver and pay for it in gold every month Didn’t give farmers unlimited coinage of silver but it was something During the Panic of 1893, Cleveland felt this policy was draining U.S. gold reserves Cleveland repealed the Sherman Silver Purchase Act This action divided the Democrats But the drain continues!!!

26.  “Crime of ’73”  Gov’t stopped coining silver  1875  Specie Resumption Act Withdrew last greenbacks from circulation  1878  Bland-Allison Act Passed over Hayes’ veto limited silver coinage to $2-4 million per mo. (based on the 16:1 ratio). Farmers, debtors, or miners not satisfied  wanted unlimited coinage

27.  Cleveland forced to borrow $65 million from J.P. Morgan  Convinced many Americans U.S government was just a tool of the rich and eastern bankers  Idea reinforced by Cleveland’s actions during the Pullman Strike in 1894

28. Mid-term election Populist vote increased by 40% Democratic losses in the West were catastrophic! Republicans won control of the House!

29.  Somewhat popular with the people  Provided for a moderate reduction in tariff rates  Included a 2% income tax on incomes of more than $2,000 Supreme Court declared tax unconstitutional

31.  National politics were in transition  Election marked the beginning of a new era  1 st modern election

32.  Gold Bugs vs. Silver Bugs  Gold Bugs loyal to Cleveland  Silver Bugs looking for a leader  Democratic National Convention, 1896  Bryan delivers his Cross of Gold Speech  “ You shall not press down upon the brow of labor this crown of thorns; you shall not crucify mankind upon a cross of gold!”  Becomes Democratic nominee

33. 18,000 miles of campaign “whistle stops.”

34. Democratic Platform Reduction of tariffs, income tax, stricter control of trusts, free silver Conservative Democrats create their own party or vote Republican

35.  Strategy: Blamed Democrats for Panic of 1893  Platform high tariffs gold standard

37. Did most of the campaigning for McKinley Raised millions from business leaders who feared “silver lunacy” would lead to inflation Used the money to sell McKinley through the mass media

39. The Seasoned Politician vs. The “Young” Newcomer The Seasoned Politician vs. The “Young” Newcomer

40. Into Which Box Will the Voter of ’96 Place His Ballot?

42.  His focus on silver undermined efforts to build bridges to urban voters.  Didn’t form alliances with other groups.  McKinley’s campaign was well-organized & highly funded.  Hanna sold McKinley through the mass media

43.  1900  Gold Standard Act  Confirmed the nation’s commitment to the gold standard.  A victory for the forces of conservatism.

44. The Wizard of Oz by L. Frank Baum

46.  Dorothy  ?  Kansas  ?  Wicked Witch of the East  ?  Tin Woodsman  ?  Scarecrow  ?  Cowardly Lion  ?  Yellow Brick Road  ?  Silver Slippers  ?  Emerald City  ?  Oz  ?  The Wizard  ?  Munchkins  ?  Wicked Witch of the West  ?  Flying Monkeys  ?

48.  The economy experienced rapid change.  Era of small producers & farmers was fading away.  Race divided the Populist Party, esp. in the South.  The Populists were not able to break existing party loyalties.  Most of their agenda was co-opted by the Democratic Party.

49. Al Gore in 2000 Lou Dobbs