16.3- Farmers, Populism, and Depression

A. The Farmers Plight

1. Farmers raising more crops and animals in the U.S. but also in Canada, GB, Russia, Argentina, etc.

Problem= Supply is bigger than demand2. Result= lower profits

3. Shipping costs increase (inflation)- reduces profit even more

4. Many farmers are buying more equipment and more land to make up for losses yet more supply causes prices to drop even more

5. Many lost farms and became laborers or tenant farmers

6. Farm equipment companies, bank, RR, shipping companies and big farms get rich

- FARMING IS GOING NOWHERE

B. National Grange

1. 1st major farm organization which helped to get economic and political issues solved for farmerHow?•Cooperatives (co-op)•Regulate RR freight rates- called “Granger Laws”- rate within states

•Interstate Commerce Act- 1887-Rates between states regulated-Led to the formation of Interstate Commerce Commission

2. Yet- courts often sided with the RR companies

C. Alliance Movement-

1. Farmers Alliance- more powerful farming1.Began in Texas and spread2.By 1890- 400,000 members3.Spread with same movement as National Grange; farming coops= laws on RR

2. Graduated Income Tax= tax that was paid higher by those who made more (made more…paid more)

1.Alliances fought to have this

D. The Money Question

1. The farmers wanted more money printed, so that they could charge more and pay back loans quicker

2. Banks wanted money supply tied to the gold standard; paper $= set amount of gold

3. Government sides with banks

•Bland Allison Act 1878

•Sherman Silver Purchase Act- 1890

•Both required the government to buy a set amount of silver/month and to make more money

BUT- government only uses little bit of silver

E. Populist Party- new political party that fought to return government from ruins into the hands of everyday people “People’s Party”

1.1892 election; James Weaver loses

2. For working man, esp. Farmers, shorter workday, graduated income tax, government owns RR’s