4.03 Trouble for Farmers *Too Economic Problems Inflation Deflation Love/Hate the Railroads The Grange, 1867 Munn v Illinois, 1877 Farmers’ Alliance 1877 Populist Party many products so prices decline *Farming equipment very expensive *Farmers were going further and further into debt • Money loses its value • More $ in circulation • Prices increase *money gains value BUT prices are still high Love: get products transported to markets quicker & farther away Hate: railroads very expensive • Farmers organization created for social & professional purposes. • Founded by Oliver Kelly • Became a political group for farmers *Federal government can regulate Interstate trade Interstate: state to state • Group of farmers fighting to protect common interests. • Formed the “People’s Party” to give farmers a voice in government. Originally the People’s Party – fight for the rights of farmers and “people” Changes in Transportation • Railroads: Regulation of railroad prices *people NEED railroads *prices were TOO high • Interstate Commerce Act, 1877: •laws passed to regulate railroads (including prices) Financial Changes Changes in Government • Main Goal: increase the amount of money in circulation • referendum : • Bimetallism • Recall : Increase silver in circulation – would help farmers make money & pay off debt (want BOTH gold and silver to back American currency) • Graduated Income Tax: Basis for the 16th Amendment *tax on income *the more you make, the more they take Gov’t. gets the peoples’ opinion on a law – the people vote on the proposed law Citizens can vote to remove a public official from office • Initiative: Citizens can introduce an idea for a law • Immigrants: limit number of immigrants due to job competition • Secret Ballot – to end government corruption 4.03: Election of 1896 Main Issue: Currency – what will back the dollar? Gold? Silver? Both? Republica n William McKinley *supported gold standard *wanted deflation Democrat / Populist William J. Bryan *supported bimetallism Goldbugs: Silverites: *people who supported *people who supported Bryan McKinley -bimetallism -gold standard -farmers/laborers -upper class – bankers, factory owners “Cross of Gold” Speech *speech given by Bryan *AGAINST gold standard McKinley wins!!