Farmers’ Complaints
1.
Overproduction of goods and falling prices.
Farmers produced more food than demand. This was
the result of the opening of more farm land and
development of new machinery and better methods
of farming.
2.
Tariffs raised price of manufactured goods and
European countries taxed American food in
retaliation. Farmers could not sell surplus overseas
3.
Banks called in loans for mortgages that financed
new machinery. Also, banks charged high interest
rates on loans - 8 to 20%
4.
Railroads charged farmers more to ship goods,
especially short distances.
5.
Distributors grain elevator operators, produce
buyers and stockyard owners stored farm products
until prices rose. Farmers needed money now
6. Government monetary policy reduced money
supply making the value of money higher but
dropping prices of goods - food prices fell. Farmers
and debtors wanted to borrow money at lower rates
and pay off loans with inflated dollars - wanted silver
Gold Bugs
During 1873 Panic, US
went on the gold standard
to stop inflation. This
decreased the amount of Bimetallic
money in circulation and
Standard
money supply was limited
by amount of gold the
Money was gold and
government held.
silver coins or
greenbacks that were
This benefits lenders traded in for gold or
banks and investors
silver
Silverites
Wanted unlimited coining of
silver dollars to increase money
supply. Free Silver
Mostly silver miners and
farmers who were joined by
Greenbacks
1878 - Bland Allison Act
Ratio 16 - 1
1890 - Sherman Silver Purchase
Act
Many blame this for the
decrease of gold and 1893
Panic
The Grange - First National Farm Organization founded by Oliver Kelley
Formed Coops that bought goods at lower prices. Allowed farmers to buy
manufactured goods at lower prices. To bypass distributors sold farm produce directly
to big cities. Even opened own grain-elevators but most failed because farmers
lacked business experience.
Pressured state legislators to regulate big business - grain elevators and railroads.
Granger laws created state commissions to fix maximum freight rates and end
different freight rates for preferred customers. [Munn, Wabash ICC]
The Farmers Alliance
Larger political groups to attack monopolies like the railroads - helped pass Sherman
Silver Purchase Act.
Texas alliance wanted regulation of railroads, more money in circulation, state
departments of agriculture, antitrust laws and farm credit
Women supported these groups - Mary Elizabeth Lease of Kansas - raise “less corn
and more hell.”
African Americans formed the Colored Farmers’ Alliance
Natural Disasters like the Texas drought and Mississippi flood
increased demands for government involvement
Government Responses to Farmers’ Complaints
Remember - during this time, the Republicans and Democrats did not take a
stand on issues because they did not want to loose votes.
And - farmers disagreed on how much government intervention they wanted
1887
Congress did pass the Texas Seed Bill that provided seed to Texas to help
drought victims
1887
Interstate Commerce Act
1889
Sherman Antitrust Act
1890
Six new states entered the Union, North and South Dakota, Montana, Washington,
Idaho and Wyoming all western states that increased power of farmers and silver
miners
Sherman Silver Purchase Act was passed and later repealed
Populist Party Platform
1. More money in circulation
2. Unlimited coinage of silver - free silver at a “16 to 1” ratio
3. Graduated Income Tax
4. Return to the government of all land held by railroads and other
corporations
5. Government ownership of communications and transportation
6. A system of national warehouses where farm produce could be
stored until prices rose. Government would loans on each farmer’s
deposit of produce
7. Direct election of Senators, secret ballot, initiative and referendum
8. Eight hour work day and restrictions on immigration
1896 Presidential Election
William Mc Kinley v. William Jenning Bryan
Bryan made 600 speeches to 5 million people in 27 states
“You shall not press down upon the brow of labor this crown of
thorns. You shall not crucify mankind upon a cross of gold.”
…….Cross of Gold speech
Results:
Mc Kinley won the election because the free silver issue launched fears of
inflation and Hanna, McKinley’s campaign manager raised $3.5 million to
Bryan’s $300,000
Discoveries of gold increased supply by $100 million so US went back on
gold standard
Crop prices began to rise so Silver movement and Populism died