McCormick mechanical
reaper- Production surges,
profits plunge for farmers
Keepin’ the Farmers Down
The Populist Movement in the
United States
The Problems
Agriculture became mechanized
– Means:
More capital needed
Money for upkeep and repair
Opening of new agricultural lands
– Kept increasing farmland
– Wanted to grow more crops to make more
money
Specialized Farm Products
– Investing all time and capital into single
‘cash’ crop
More problems….
Changing character of agricultural
markets
– International markets had grown
75% of international trade was crops
– Middlemen and railroads often ate into
profits
Farmers did not see benefits of expansion
The Grange—The First
“The National Grange of the Patrons of
Husbandry”
– Worked to pass pro-farmer legislation
– Instituted farming “cooperatives”
Pooling capital
Purchased machinery, supplies, and insurance
Populist Party’s Omaha Platform (1892)
Permanent union of working classes
Wealth for all workers
Government ownership of RR
Government ownership of communication systems
Flexible and fair distribution of currency
Free & unlimited coinage of silver
All land owned must be used
Secret ballot (Australian ballot)
Graduated income tax
Direct election (by popular vote) of senators
Main Populist Critiques:
Too much emphasis on property rights
Monopolies an economic/social evil
Social Darwinism/laissez-faire are
bankrupt ideologies
Wealth was unevenly distributed
Silver and Gold!
Coinage Act of 1873- embraced gold standard
Bland Allison Act 1878- required US gov’t to buy silver and
put it into circulation as silver dollars. Also creates a 16:1
ratio (16 ounces of silver for one ounce of gold)
Sherman Silver Purchase Act 1890- increased amount of
silver gov’t purchases, meets demands of ‘silverites’
farmers and debtors who needed cheap money to pay
loans
A gold certificate, could be converted into gold coins.
Used from 1882-1932
Silver dollar
Silver and Gold
(Farmer/ Borrower vs. Banker/Moneylenders)
1870’s farmers join Greenback Party, gain relief
from low prices & high debt
Relief…How? Inflation of the currency makes it easier
for farmers to pay debts to the bankers (easy money
for loans)
Populists & later the Democrats (led by William
Jennings Bryan in 1896) advocate the free silver
approach
Republicans led by William McKinley/Mark Hanna &
eastern bankers/industrialists advocate the gold
standard which will keep inflation down, and value of
the dollar up.
THE ISSUE- Free Silver. Should the U.S. adopt the free &
unlimited coinage of silver and thereby inflate the currency
to aid the farmers?
Bryan and the Dems. say “Yes”
Bryan delivers ‘Cross of Gold’ speech, says gold
standard would be a burden, comparing the gold
standard (and specifically its effects on western
farmers) to the Crown of Thorns worn by Jesus
at his crucifixion.
Gold standard would allow Eastern bankers to
force western farmers into widespread debt,
leading to a consolidation of western property
into the hands of the centralized banks.
More thoughts on Gold vs. Silver
Standard…
McKinley & Repubs. say “No”
The ‘Gold Bugs’ argue that currency
should be tied to the gold standard
Silver standard they argue will= runaway
inflation
The End Result?
Populist Party becomes the “Demo-Pop” party as
Dems. co-opted many of the Pop. Party platform,
esp. the free silver issue
After being defeated in 1896, Bryan ran and lost
again in 1900 and 1908 , each time carrying mostly
Southern and Great Plains states.
McKinley wins pres. election in 1896
A victory for big bus., middle-class, & financial
conservatives.
Repub. Party control White House for next 16 years