Populism
AMERICA’S FIRST SUCCESSFUL GRASSROOTS
POLITICAL MOVEMENT
Plight of Farmers
Reality
Optimism
 “We were going to
God’s Country”.
 “We were going to a
new land to get rich”
 “bless the lord, he
knew we needed land”
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Loneliness
Drought
Famine
Homesteaders needed at least
$1,000.00 to start their new
farms, regardless of the free land.
Living conditions (Sodbusters)
Natural “scrouges”
Particularly difficult for women
Natural resources scarece
Land rush Fever!
Specific Woes
Agriculture
 Crop prices were down
by on average 33%.
 Meanwhile inflation on
other materials was as
high as 50%
Banking
 Congress abandoned
the “Greenback” in
1877.
 Meaning loans and tax
payments could only
made with “specie”
hard silver or gold.
 This was in short
supply.
Banking concerns
 You take out a loan in 1876 when crop prices are
stable. Your loan payment is $13.50 per month.
 By 1881 your income has gone down by nearly ½,
meanwhile deflation has deprived you of the
opportunity to purchase other items that are at the
same time inflated.
 Meanwhile the bank rate is constant. You owe
$13.50 per month, the loan you took out for farm
equipment is not related to inflation. And now the
more common greenback is gone—you pay your loan
back in gold you don’t have and can’t get.
Railroad Concerns
 Rates were never constant.
 Rebates were given to big cattle industry and the
large oil conglomerates to keep their business.
 Those rebates had to be made up…small
homesteader farmers were “squeezed” by the RR’s to
make those rebates up.
 Not uncommon to see a 20% increase per year in the
cost of shipping to eastern markets.
Oliver Kelley’s Patrons of Husbandry
 Began its life as a method
for farmers to socialize.
 Socialization brings
complaints about their
current plight.
 Slowly began to spread
west.
Gilded Age Economics
 Farmers largely
dissatisfied with
America’s two party
system.
 Financial power
monopolized by Eastern
elites.
 Political power was
unresponsive…at the
federal level
 S. Grover Cleveland
Greatest Goal? Populist Party
 The ultimate goal of
populists like Tom
Watson and Mary Lease
was to make government
more responsive to the
needs of farmers.
 View populism as the
unionization efforts of
farmers.
Regulating Railroads
 Illinois efforts led to a victory in Munn v. Illinois.
It was deemed the national good to allow states to
control rail.
 Decision severely limited in Wabash v. Illinois,
when the court ruled ten years later in 1886 that
this is a violation of interstate commerce.
 Led to the formation in 1887 of the relatively
ineffective ICC (Interstate Commerce Commission.
Race and Populism
 Farmers nationwide are
“all in the same ditch”…
 Liberal minded
reformers like Tom
Watson urged unified
efforts at reforming the
system.
Onto the big stage
 St. Louis 1892, the
alliances and granges
united into a cohesive
political party and ran
James B. Weaver as a
candidate in 1892.
 The election would bear
great importance as to
whether the Peoples
(Populists) Party would
be taken serious.
Election of 1892
 Platform?
 Free Silver
 Railroad regulation
 Governmental regulation
of the banking system.
 Private ownership of
land
 They made a big impact!
Political impact
 The Populists made a
significant splash in state
and local governments
during the mid term
elections of 1894, their
strong showing in 1892
made them a force to be
reckoned with.
 Controlled several state
governments in Colorado
and Kansas.
The Grand Scale
 The Election of 1896
 Provided them a
legitimate opportunity to
win the White House.
 William J. Bryan and
Thomas Watston v.
William McKinley and
Garrett Hobart
Election of 1896
 The key issue…Gold.
 The economy was
hemorraghing under the
weight of a gold only
economy. The
Democrats (Bryan)
merged with the
Populists to tackle the
sound money
Republicans.
Bryan and the platform of 96’
 Direct election of
senators
 Free silver
 Graduated income tax
Republicans:
 Sound money
 Status quo
The Result
 The Gilded Age not quite
over as the “enigmatic”
McKinley wins a tight
victory on the strength of
his support from big
business.
“to Oz?”
 L. Frank Baum the author
worked for a populist
newspaper in Kansas.
 Was his children’s story
meant to be a parable on
the Populist age?
 Some say no, others
yes…undoubtedly his
sympathies with the
movement went into his
creation of the
story…intended or not.
Money
 1880-1896 prices fell by 23%.
 When prices fall this is called deflation. For many
this is an economic benefit—particularly the elderly
who for example may own their own home without a
fixed payment to a bank.
 For others whose wages depend on these prices—ala
farmers, this is a disaster.
 One way of bringing up prices was to add silver to
the nations money supply (at a rate of 16 oz to 1 oz of
gold) thus adding more money to circulation and
raising prices—promoting inflation.
Say it ain’t so?
 How did they lose?
 Populist ideas watered
down with the ideas of
democratic party. The
platform was broad and
lacked cohesion.
Funding of industrialists
like Mark Hanna, the
Kingmaker.
Bryan’s future…
 Viewed during the
election as a
windbag…known for his
oratories, he will become
a key figure in US
history.
A failure?
 A young rough rider got
the message…as did the
American people. While
the populist party failed
in the short term. It’s
impact will resonate
throughout the
Progressive Age.