Ch.5 Sec.3 FARMERS AND THE POPULIST MOVEMENT

Farmers Unite Late 1800s- farmers were

trapped economically Crop prices were falling Farmers mortgaged their farms to

buy land to produce more crops (more debt)

Railroad were taking advantage of farmers by charging excessive shipping prices

Economic Distress Farmers troubles were part of large economic problem

in the U.S.

Inflation U.S. issued $500 million in paper money during the Civil

War----”Greenbacks”

Were not worth as much as “hard currency” of the same face value

Hard Currency: coins & paper money printed in yellow ink

After war, gov. started taking greenbacks out of circulation

Problem for farmers Farmers paid back loans in dollars worth more than what

they borrowed

Crop prices fell: Wheat (1867)= $2------Wheat( 1887)= $0.68

Pushed gov. to put more $ back in circulation

Problems with Railroads Paid outrageous prices to transport

grain Lack of competition allowed prices to

rise Cheaper to send grain from Chicago to

England by boat than it was to send grain from Dakotas to Minneapolis by rail

Farmers use credit Mortgaged their homes for credit to buy

seed, equipment, & supplies Suppliers charged high rates of interest

so that items bought on credit cost more than cash purchases

Farmer’s Alliances

To effectively push for reforms farmers needed to organize

Oliver Hudson Kelley- 1867 Started the Grange—social/educational

outlet for farm families

Taught farmers how to organize against the railroads and sponsor state legislation to regulate railroads

Farmers’ Alliances Educated people about low interest rates,

loans, and gov. control over railroads and banks

Grew to more than 4 million people (south & west)

Populist Party Populism- movement of the people

1892 1st convention in Omaha, NB

Agenda: lift burden of debt off farmers & give people greater voice in gov.

Party Platform Economic Reforms

Increase $ supply

Graduated income tax

Federal loan program

Gov. Reforms Election of U.S. Senators by popular vote

Single terms for President & VP

Secret Ballot

8 hr. workday & restrictions on immigration

Panic of 18931880s farmers were overextended by loans Railroad construction expanded faster than the

marketsThe Panic

Philadelphia & Reading Railroad, Erie, N. Pacific, Union Pacific, and Santa Fe Railroads all went bankrupt

People traded paper money for gold Stock prices fell drastically 15,000 businesses and 500 banks closed 3 million lost their jobs

Silver OR Gold? Political Divide

Business owners & bankers (Northeast)—Republicans Farmers/laborers (South & West)--- Democrats

Campaign Issue Which metal would be used for money (Silver or Gold? )

1. Silverites favoring bimetallism—gov. gives gold/silver in exchange for paper currency Hoped to stimulate economy by allowing more $ in circulation

2. Gold Bugs (President Cleveland) favored gold standard---back dollars with gold only More stable/expensive $

Important issue because it would determine if the people’s paper $ was worthless or not

1896 Candidates Republican- William McKinley (Ohio)

Democrat- William Jennings Bryan (Nebraska) ENDORSED BY THE POPULIST PARTY

Campaign Bryan

campaigned in 27 different states

No match for $$ backing McKinley

McKinley campaigned from his front porch while people traveled the country speaking for him

Results McKinley won approx. 7 million votes

Bryan 6.5 million votes

Electoral college made McKinley the 25th President