APUSH Lecture 5F
(covers Ch. 19)
Ms. Kray
Some slides taken from Susan Pojer
• Commercial farming began to replace the independent farmer
• Not self-sufficient
• Specialized in cash crops that sold in national and international markets
• Farmers lost a degree of independence
• Forced to rely on bank loans, railroad companies, and prices elsewhere
• 1880s worldwide overproduction led to lower prices and increased
indebtedness
• Who will the farmers blame?
• Belief that railroads were using discriminatory
rates to exploit farmers
• Long haul vs. short haul, rebates, etc.
• Belief that big business used high tariffs to
exploit farmers
• Belief that a deflationary monetary policy
based on gold hurt farmers
• Wanted free and unlimited coinage of silver coins
• Belief that corporations & middlemen charged
exorbitant prices for fertilizers, farm
machinery, & storage
When the banker says he's broke
And the merchant’s up in smoke,
They forget that it's the farmer
who feeds them all.
It would put them to the test
If the farmer took a rest;
Then they'd know that it's the farmer
feeds them all.
• Although farmers
very individualistic,
they did try to
organize themselves
• National Grange of
the Patrons of
Husbandry, 1867
• Organized by Oliver
Kelley
• Started off as a
social organization
• Depression of 1873
was a turning point
• Formed marketing cooperatives
to allow farmers to bypass
middlemen
• Elected officials to state
legislatures in the Midwestern
states
• Granger Laws
• Passed by state legislatures to
regulate the railroads unfair
business practices
• Supreme Court ruled them
unconstitutional b/c they
regulated interstate commerce
• Munn v. Illinois (1877)
• Wabash v. Illinois (1886)
Gift for the Grangers:
The Farmer Pays for
All!
• No more laissezfaire
• People wanted
gov’t to deal with
growing social &
economic
problems & to
curb the power of
the trusts
• Interstate Commerce Act, 1886
• Passed in response to Supreme
Court striking down Granger Laws
• Established the Interstate
Commerce Commission (ICC)
• Attempted to regulate the RRs
• Largely ineffective
• Sherman Anti-Trust Act, 1890
• Pushed by southern and western states
• Prohibited any “contract, combination, in form of trust
or otherwise, or conspiracy in restraint of trade or
commerce”
• Poorly enforced
• At first, used against labor unions instead of monopolies
• More political & less
social than Grange
• Ran candidates for office
• Controlled 8 state
legislatures
• Had 47 reps in Congress
in the 1890s
• Known for the significant
role women played
• Mary E. Lease – “Raise
less corn and more hell.”
• 1889  Northern and Southern
Farmers Alliances merge
• 1890 Ocala Demands
• Direction election of senators,
lower tariffs, graduated income
tax, new banking system
regulated by the government,
increased money supply
• Pledge support to any candidate
who would support these
demands
• Did well in 1890 mid-term
elections
• By 1892 the alliances had
provided the foundations for a
new political party
• The Populist Party was
founded by James B. Weaver
and Tom Watson
• Got almost 1 million popular
votes in the Election of 1892
• Won several congressional
seats
James B. Weaver,
Presidential Candidate
&
James G. Field, VP

System of “sub-treasuries.”

Abolition of the National Bank.

Direct election of Senators.

Gov’t regulation and ownership of RRs,
telephone & telegraph companies.

Government-operated postal savings
banks.

Graduated income tax

Restriction of undesirable immigration.

8-hour work day for government
employees.

Abolition of the Pinkerton detective
agency.

Australian secret ballot.

Re-monetization of silver.

A single term for President & Vice
President.
 Weaver was one of few 3rd party candidates to win electoral
votes (22)
 Harrison lost because of the unpopularity of the McKinley Tariff
 Grover Cleveland (D) is back but he more conservative this
time around!
 Coalition of farmers and
urban workers never
materialized
Urban Workers didn’t
like free silver argument
or their anti-immigrant
stance
 Union of black and
white farmers in the
south never
materialized
Southern conservatives
feared this union would
undermine white
supremacy
Weaver speaking to a crowd
Began 10 days after Cleveland took office.
Several major corporations went bankrupt
• Over 16,000 businesses disappeared
• Triggered a stock market crash
• Over-extended investments
Bank failures followed causing a contraction
of credit
• Nearly 500 banks closed
By 1895  unemployment reached 3 million
Americans cried out for relief but gov’t
continued laissez-faire policies!!!
Populist Jacob Coxey of Ohio
“Army of the Commonweal of
Christ.”
Marched on Washington 
“hayseed socialists!”
Demanded $500 million public works
programs to create jobs
Coxey arrested for trespassing
Had little impact on public policy but
signaled American’s desperation
• Seemed to reinforce conservatives’
fears of a class war
Hard Money Advocates Soft Money Advocates
• Favored currency
backed by gold
• Supporters: Bankers,
investors, established
businesses
• Dollars backed by gold
would hold their value
• As economy and
population grew, the
limited # of dollars would
increase in value
• 1865-1895 – dollar
increased in value 300%
(deflation)
• Favored greenbacks and
unlimited coinage of
silver
• Supporters: Debtors,
farmers, start-up
businesses
• Could pay off debts with
inflated dollars
• Borrow $$ at lower
interest rate
• Blamed depressions on
restricted money supply
The currency issue came to be invested with great symbolic significance
• Precipitated by the Panic of 1893
History of the Silver Issue
• Government traditionally endorsed bimetallism
• Crime of ‘73
• Government stopped coining silver because the market value of
silver was much higher than the government mandated 16:1 ratio
• Silver-mine owners and farmers seeking currency inflation sought
to overturn
• Specie Resumption Act of 1875
• Withdrew last greenbacks from circulation
• Bland-Allison Act of 1878
• Limited coinage of silver to $2-4 million a month
• Soft money advocates not happy, they want unlimited coinage of
silver
• Required the government to
purchase 4.5 million oz. of silver
and pay for it in gold every
month
• Didn’t give farmers unlimited
coinage of silver but it was
something
• During the Panic of 1893,
Cleveland felt this policy was
draining U.S. gold reserves
• Cleveland repealed the Sherman
Silver Purchase Act
• This action divided the
Democrats
• But the drain continues!!!
“Crime of ’73”  Gov’t
stopped coining silver
1875 Specie Resumption Act
• Withdrew last greenbacks
from circulation
1878  Bland-Allison Act
• Passed over Hayes’ veto
• limited silver coinage to $2-4 million per mo.
(based on the 16:1 ratio).
• Farmers, debtors, or miners not satisfied 
wanted unlimited coinage
 Cleveland forced to borrow $65 million from J.P.
Morgan
 Convinced many Americans U.S government
was just a tool of the rich and eastern bankers
 Idea reinforced by Cleveland’s actions during the
Pullman Strike in 1894
• Mid-term election
• Populist vote
increased by 40%
• Democratic losses
in the West were
catastrophic!
• Republicans won
control of the
House!
Somewhat popular with
the people
Provided for a moderate
reduction in tariff rates
Included a 2% income
tax on incomes of more
than $2,000
• Supreme Court declared
tax unconstitutional
National politics were in transition
Election
marked the
beginning
of a new era
1st modern
election
 Gold Bugs vs. Silver Bugs
 Gold Bugs loyal to Cleveland
 Silver Bugs looking for a
leader
 Democratic National
Convention, 1896
 Bryan delivers his Cross of
Gold Speech
 “You shall not press down upon
the brow of labor this crown of
thorns; you shall not crucify
mankind upon a cross of gold!”
 Becomes Democratic
nominee
18,000 miles of campaign “whistle stops.”
• Democratic Platform
• Reduction of tariffs,
income tax, stricter
control of trusts, free
silver
• Conservative
Democrats create
their own party or
vote Republican
Strategy: Blamed
Democrats for
Panic of 1893
Platform
• high tariffs
• gold standard
• Did most of the
campaigning for
McKinley
• Raised millions from
business leaders who
feared “silver lunacy”
would lead to
inflation
• Used the money to
sell McKinley through
the mass media
The
Seasoned
Politician
vs.
The
“Young”
Newcomer
Into Which
Box Will the
Voter
of ’96 Place
His Ballot?
His focus on silver
undermined efforts to
build bridges to urban
voters.
Didn’t form alliances with
other groups.
McKinley’s campaign was
well-organized & highly
funded.
Hanna sold McKinley
through the mass media
1900  Gold
Standard Act
Confirmed the
nation’s
commitment to
the gold
standard.
A victory for the
forces of
conservatism.
The Wizard
of Oz
by L.
Frank
Baum

Dorothy  ?

Silver Slippers  ?

Kansas  ?

Emerald City  ?

Wicked Witch of the
East  ?

Oz  ?

The Wizard  ?

Munchkins  ?

Wicked Witch of the
West  ?

Flying Monkeys  ?

Tin Woodsman  ?

Scarecrow  ?

Cowardly Lion  ?

Yellow Brick Road  ?
 The economy experienced rapid change.
 Era of small producers & farmers was
fading away.
 Race divided the Populist Party, esp. in
the South.
 The Populists were not able to break
existing party loyalties.
 Most of their agenda was co-opted by
the Democratic Party.
Lou Dobbs
Al Gore in 2000