Describe the causes and
effects of the financial
difficulties that plagued the
American farmer and trace
the rise and decline of
populism
NCSCOS 4.03
Michael Quiñones, NBCT
www.socialstudiesguy.com
Macro Concepts
Innovation-the method of advancing and improving the way of
doing something.
Conflict-problem or issue that is controversial and can cause
problems without compromise.
Micro Concepts
Inflation-rising prices of resources due to scarcity.
Deflation-falling prices of resources due to oversupply.
Supply and demand-amount and desire for a resource.
Populism-political movement led and controlled by citizens
[mostly late 1800s farmers] to change the government.
The Grange
 A united group of American farmers who
came together to fight for their rights
and defend their economic interests.
This group of farmers called itself the
Grange
 Farmers believed they were being
exploited by railroads.
 Railroads were charging huge fees to
transport farmers’ crops and livestock.
 The Grange wanted the U.S.
Government to step in regulate the
railroads.
 As a result of political pressure it placed
on members of Congress and several
lawsuits the power of railroads to charge
excessive fees for freight transportation
was decreased.
Farmers’ Alliances
Several other farmers’ groups came together in different regions:
Southern Alliance-Farmers from the Southern part of the U.S. who grew/raised
tobacco, hogs and cotton.
Colored farmers-Mostly sharecroppers and tenant farmers who grew cotton,
tobacco and corn in the South.
These farmers’ groups combined forces to fight their economic enemies (e.g.
railroads) by forcing them to negotiate with large numbers of farmers instead
of single farmers.
Money Policy
 To strengthen the U.S. economy several monetary policies were attempted.
 Greenbacks-During the U.S. Civil War with the lack of gold the Union [and
Confederacy] issued paper currency that promised to pay the face value [$5,
$10, $50, etc] with “to the bearer on demand.” The government was asking
people to trust it to pay gold later on.
 Gold Standard-This policy forced the U.S. government to issue only the
amount of paper money the U.S. had in gold reserves in the U.S. Treasury.
 Bimetallism-This policy allowed the U.S. government to issue paper money
based on gold and silver reserves.
Railroad Court Cases

Two landmark U.S. Supreme Court cases were influenced by the pressure exerted
on the U.S. Government by the Grange.

Wabash vs. Illinois in 1886 the Court ruled that individual states could not interfere
with interstate commerce related to railroads. The Interstate Commerce Act was
passed soon after this decision in order to control trade between states. This ruling
gave railroads more power to charge unfair transport fees.

Railroads were worried about the power of large companies (their biggest customers)
demands for rebates on freight charges.

Munn vs. Illinois in 1887 the Court ruled that states could regulate businesses
within their borders. This ruling gave states more power protect farmers from
unfair transport fees charged by railroads.
Omaha Platform
 The set of ideas [platform] adopted by the
Populist party.
 The main objective of the Populist Party was for
the U.S. government to own all the railroads and
telegraphs.
William Jennings Bryan
In 1896 at the Democratic National Convention William Jennings
Bryan was a candidate for the presidential nomination as a democrat.
He represented the state of Nebraska which had thousands of farmers.
In a famous speech criticizing the gold standard Bryan believed that
bimetallism [gold and silver supported currency] would make more money
available for cash poor farmers.
Recording of speech
Text of speech
Letter
 Write a letter to the President of the United States or the Congress
 You can be a railroad company owner
 You can be a poor farmer
 You must explain why the federal government should create laws
to support your side.
 You should be convincing and use examples from what you
learned.
Image sources
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http://www.nebraskastudies.org/0600/media/0601_030101.jpg
http://www.rollingprairie.net/images/small%20rpfa%20local%20color%20banner.jpg
http://www.kwaves.com/us5.jpg
http://www.moneyteachers.org/images/McKinley%20and%20Gold.jpg
http://www.nps.gov/history/history/online_books/steamtown/shs5d1.jpg
http://clio.missouristate.edu/wrmiller/images/pcartoon/p17.gif
http://upload.wikimedia.org/wikipedia/commons/thumb/3/37/Cross_of_gold_speech_cartoon.jpg/170px
-Cross_of_gold_speech_cartoon.jpg