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 demand
2. 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 farmer
How?
•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 Movement1. Farmers Alliance- more powerful farming
1.Began in Texas and spread
2.By 1890- 400,000 members
3.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