Populism
Populism
Primarily an agrarian movement
Farmers experienced hardships
– Overproduction
Technology increased production
As Great Plains opened for settlement more areas
were cultivated
Prices went down
– Unpredictability of weather
– Tariffs made farmers pay more for American
made equipment
Farmers and Tariffs
Tariffs on imported goods discourage people
from buying imports by making them more
expensive
Tariffs were said to create factory jobs but raised
prices for the consumer
Protected farmers against farm imports
Hurt farmers
– Raised prices of manufactured goods
– Kept foreigners from earning money that was
used to buy their crops
Money Issue
Money Supply-amount of money in the nation
economy
– Inflation-widespread rise in prices on good of
all kinds
– Deflation-a drop in the prices on goods
Monetary Policy- Federal government’s plan for
the makeup and quantity of the nation’s money
supply
Money
Supply
Inflation
up
Deflation
down
Value
down
up
Prices
up
down
Bankers
Deposits
Loans
Money in bank
Inflation (100%)
Deflation (100%)
$5000
$1250
- $5000
- $10,000
- $2500
$ 5000
$5000
$5000
$2500
Utilities
- $500
- $1000
- $250
salaries
- $ 1000
- $2000
- $500
-$3000
$3000
Inflation (100%)
Deflation (100%)
$4000
$1000
Money Remaining
$0
Farmers
Income
$2000
Mortgage payment
- $1000 - $1000
New equipment cost
- $500
- $1000
- $1000
- $250
Groceries
- $200
- $400
- $100
Feed
- $100
- $200
- $50
Money Remaining
$200
$1400
- $400
Gold Bugs
Bimetallic Standard-currency consisted of
gold or silver coins or United States
treasury notes that could be traded for
gold or silver
1873 put on a Gold Standard- the money
supply was limited by the amount of gold
held by the government
Silverites
Free Silver- the unlimited coining of silver dollars
to increase the money supply
Bland-Allison Act of 1878- Required the federal
government to purchase and coin more silver
– Vetoed by president Rutherford B. Hayes
– Did not want to create inflation
Sherman Silver Purchase Act- increased the
amount of silver the government was required to
purchase every month
– Required the treasury to buy silver with notes
that could be redeemed with silver and gold
– Repealed by the Silver Purchase Act in 1893
Granger movement
– Began in 1867- mostly social gatherings
– After problems occurred became more than
social gatherings
Developed stores, cooperatives, processing plants,
and factories
“Granger Laws”- attempted to regulate railroad
shipping and storage fees
Farmers’ alliance
– 1890- 1.5 million members
– Made detailed agendas for action
Strict regulations on railroads (pushed for
nationalization)
Monetary policies that would cause inflation
– Made it easier to pay debts
– Government agency that offered low interest
loans
Government run storage facilities
Populist Party “ The People’s
Party”
New political party consisting of farmers’
alliance, southern democrats, some labor
unions, and a few small reform parties
Believed that government was run by the
industrialists
– The gap between the rich and the poor was growing
“Corruption dominates the ballot-box, the legislatures, the
congress, and touches even the ermine of the bench [i.e., the
courts]…. From the womb… of governmental injustices we
breed the two great classes-tramps and millionaires”
Populist Party
– Demands
Free coinage of silver
End to tariffs and the national bank
Direct election of senators
Graduated income tax- Higher income = higher
taxes
Regulation of big business
Populist Party
Had success in the South and the West
Won seats in state legislature and U.S. house
Won over many southern democrats
Nominated James Weaver for President in 1892
– 22 elect. Votes (5 states)
Depression 1893
– Repeal of the Sherman Silver Purchase Act
– Democrats split into two groups: Gold-bugs
and Silverites
Election of 1896
Republicans
– Support Gold Standard – money supply based only
on gold
– Nominated William McKinley
– Supported by urban workers and business leaders
Democrats and Populists Unite
– Democrats Nominate William Jennings Bryan
– Populists decide to support Bryan
Supported in the south and the west
– Results
– McKinley wins Presidency
– Gold found in Alaska in 1899
– Populist Party never wins national support
and eventually fails
Ideas of the party live on and have become laws
–
–
–
–
Federal income tax
Eight-hour workday
Direct election of US senators
Abandonment of the gold standard